Deepak Builders & Engineers India Limited — Q2 FY26

Engineers India Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=bHl0sYeU_NM Published: 6 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the EIL Engineers India Limited Q2FI26 0:09 9 seconds earnings conference call hosted by DAM Capital Advisers Limited. As a reminder, all participant lines will be in the 0:17 17 seconds listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:24 24 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on 0:31 31 seconds your touchstone phone. Please note that this conference is been recorded. I now hand the conference over to Miss Bumika Nay. Thank you and over to you ma. 0:43 43 seconds Yeah. Hi, good evening everyone. On behalf of Dam Capital, I welcome you to the Q2 FI26 earnings call of Engineers 0:51 51 seconds India Limited. We have the call today being represented by Mr. Sanjay Jindal, director of finance. Mr. Suend Dupari, 0:59 59 seconds company secretary and investor relations. Mr. Api Batra, executive director finance and accounts and IR. 1:06 1 minute, 6 seconds Mr. Amanit Singh Chopra, senior general manager, CMD office and IR. Mr. Vive Mida, senior general manager marketing 1:13 1 minute, 13 seconds BD and IR. And Miss Nha Narula, senior manager, company secretary and IR. At this point, I'll hand over the floor to 1:21 1 minute, 21 seconds Mr. Jindel for his initial remark post which we'll open up the floor for Q&A. Thank you and over to you sir. 1:28 1 minute, 28 seconds Uh thank you Miss Bubika. Uh good evening everybody and a warm welcome to all the investor who are attending the 1:36 1 minute, 36 seconds investors call. We have declared our financial results for the second quarter 1:41 1 minute, 41 seconds ended 30 30th September 2025. Today our order book status is uh uh has reached 1:51 1 minute, 51 seconds all its all-time high and stands at rupees 13,000 1:58 1 minute, 58 seconds 131 cr as on 30 30th September 2025 as compared to rups 12,145 2:06 2 minutes, 6 seconds cr as on 30th June 2025 order inflow in up to se second quarter 2:13 2 minutes, 13 seconds of financial Year 2526 stands at rupees 3765 cr. We have declared results of quarter 2:22 2 minutes, 22 seconds and half year ended September 2025. on 14th November 2025. 2:30 2 minutes, 30 seconds As regards to financial performance for 3 months ended September 25, the company 2:35 2 minutes, 35 seconds has registered turnover of rupees 900 cr rupees 676 cr in the second quarter of the financial year 2425. 2:46 2 minutes, 46 seconds Turnover from consultancy and engineering segment stood at 411 cr and from turnkey segment at rupees 489 cr. 2:56 2 minutes, 56 seconds During the current quarter ended September 25, the company has recorded profit before tax of rupees 150 cr and p 3:06 3 minutes, 6 seconds of rupees 115 cr in comparison to rupees 100 cr and 79 cr respectively during the 3:15 3 minutes, 15 seconds second quarter of financial year 2425 showing an increase of 50 50% in the 3:22 3 minutes, 22 seconds profit before tax and around 45% in the fact notably EPS for the quarter ended 3:30 3 minutes, 30 seconds September 25 stood at rupees 2.04 uh with September 24 at rupees 1.41 41 3:39 3 minutes, 39 seconds operating margin during the second quarter of financial year 2526 stood at around rupees 102 cr that is 11.3% 3:49 3 minutes, 49 seconds which gave rupees 477 cr that is 7% during the second quarter of 2425 3:57 3 minutes, 57 seconds IDA including other income of the company during second quarter 25 stood 4:03 4 minutes, 3 seconds at around rupees 160 cr iida margin is 17% in comparison to 110 cr I beta 4:12 4 minutes, 12 seconds margin 15% during the second quarter 24 in the first half year of 2526 the 4:21 4 minutes, 21 seconds company achieve a turnover of rups 1,757 cr in comparison to rups 1287 cr in the 4:31 4 minutes, 31 seconds first half year of 2425 showing an increase of around 37% with turn bought from consultancy and 4:39 4 minutes, 39 seconds engineering segment amounting to rupees 819 cr and rups 938 cr in trunky segment 4:47 4 minutes, 47 seconds for the half year ended 30th September 2025 the company recorded profit before 4:53 4 minutes, 53 seconds tax of rups 243 cr and profit after tax of rups 185 cr in comparison to rupees 5:02 5 minutes, 2 seconds 174 cr and 134 cr respectively ually for the half year ended 30th September 2024 5:11 5 minutes, 11 seconds showing an increase of 40% in PBT and around 38% in PAT operating margin first 5:18 5 minutes, 18 seconds half year of financial year 2526 stood at around 9.3%. 5:24 5 minutes, 24 seconds Ibida including other income of the company for the first half year ended 30th September 2025 stood at around 265 5:33 5 minutes, 33 seconds cr. IDIA margin is 14% in comparison to rupees 1954 cr for the first half year ended 5:42 5 minutes, 42 seconds 30th September 2024. The company is maintaining a healthy EPS of rupees 3.29 29 for the first half year ended 30th September 2025. 5:53 5 minutes, 53 seconds On the consolated uh front, the company earned a profit of rupees 83 cr. For the quarter ended 30th September 2025. For 6:02 6 minutes, 2 seconds the half year ended uh September 25, the profit stood at 149 cr. Thank you. Now it's over to Miss Bumika to you. 6:18 6 minutes, 18 seconds So we'll start with the Q&A. Yeah. 6:22 6 minutes, 22 seconds Okay sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a 6:30 6 minutes, 30 seconds question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, 6:37 6 minutes, 37 seconds you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, 6:45 6 minutes, 45 seconds we will wait for a moment while the question queue assembles. 6:53 6 minutes, 53 seconds We take the first question from the line of Amit Anwani from PL Capital. Please proceed. 7:01 7 minutes, 1 second [clears throat] 7:01 7 minutes, 1 second Hi sir, thanks for taking my question and uh congratulations for the very strong execution which they have. So now 7:09 7 minutes, 9 seconds my first question again on execution we have already done kind of 33% growth for 7:16 7 minutes, 16 seconds first half to first half and I recollect uh you guiding about 20% plus or full year growth so now are we changing then 7:25 7 minutes, 25 seconds that strong since the execution has been quite strong in H1. Uh so just first thing wanted to understand on the 7:32 7 minutes, 32 seconds guidance and second uh on the order prospects for next 6 months we we understand that you have won one 7:40 7 minutes, 40 seconds international consulting order again in Africa which you announced about 600 plus odd cr and H1 intake is roughly 7:47 7 minutes, 47 seconds about 37 100 odd crarier target now and what are the prospective orders and on the execution are we 7:55 7 minutes, 55 seconds changing our guidance As for the guidance purpose uh in the turnor we are giving guidance of uh 25 8:04 8 minutes, 4 seconds plus% 25 uh% plus and uh we will stand by our margin business segment profit of 8:12 8 minutes, 12 seconds around 25% in the consultancy business and uh in the LSTK we will maintain 6 to 8:19 8 minutes, 19 seconds 7 segment profit and for the rest of the uh portion uh Mr. Vive Ma will answer. Hi Amit this is Vive. Hi, how are you? 8:28 8 minutes, 28 seconds Uh just to update you on the business prospects of it. Uh as of today we have already crossed 4,000 crores. Okay. And 8:36 8 minutes, 36 seconds uh we are moving towards our last year's target 8,000 crores. We they are going to definitely cross that 8,000 cr and 8:44 8 minutes, 44 seconds hope to get more than that. Uh internationally when you were talking about uh this project this year we have been able to secure around 1,600 crores 8:52 8 minutes, 52 seconds uh from overseas. So this year in the consultancy segment overseas has been has contributed more and we targeting 8:59 8 minutes, 59 seconds few major uh projects more in this in in months to come you'll hear more information on that same time we are 9:08 9 minutes, 8 seconds working in the domestic market so prospects are good it we will definitely cross the last year's mark and uh it will go beyond that definitely 9:17 9 minutes, 17 seconds so that's great to hear so one thing is that you highlighted 1600 out of 4,000 that is 40%. So are we eyeing for 40% 9:26 9 minutes, 26 seconds plus consultancy contribution in the 8,000 plus order inflow which you're going to have this year. 9:33 9 minutes, 33 seconds Uh it would uh definitely be as part of consultancy normally it remains around 50 40 to 50% with within the consultancy 9:43 9 minutes, 43 seconds segments overall it would be some somewhere around 25 20 to 25%. Right. in the overall. 9:51 9 minutes, 51 seconds Understood. Second question. 9:54 9 minutes, 54 seconds Yeah. Second question. Uh I was just observing the uh revenue from consultancy overseas which was kind of 10:02 10 minutes, 2 seconds 85 to 100 cr last year quarterly run rate and now this year it is about 70 to 10:09 10 minutes, 9 seconds 75 cr run quarterly run rate despite the overseas consultancy order book has been 10:16 10 minutes, 16 seconds massive. uh we we won massive orders last year also. So any particular reason of uh this not picking up? In fact, it 10:24 10 minutes, 24 seconds has declined uh the overseas consultancy revenue this year. 10:28 10 minutes, 28 seconds Actually uh till now our major client was refinery in Nigeria and we were getting uh turn off from our Mongolia 10:37 10 minutes, 37 seconds business also. Now these uh projects are uh going to be tempered because the work has been completed but uh since we have 10:46 10 minutes, 46 seconds got good order in the 2425 itself in the uh foreign tra so that business has started uh started exeution taking on. 10:57 10 minutes, 57 seconds So uh we are confident that in the next quarter you will see the uh results of masses or massive order book in the foreign uh territory. 11:08 11 minutes, 8 seconds Understood sir. And are we targeting the similar 50/50 mix or since uh the uh turnkey was very strong this quarter. So 11:17 11 minutes, 17 seconds what is the mix we are expecting for this year? Now on on annual basis it will be 50/50 or 50 to 48%. 11:27 11 minutes, 27 seconds At most um lastly sir on on the losses from associates I am assuming that this is because of the shutdown in Ramagundam. 11:35 11 minutes, 35 seconds So just an update on that because I think H1 basis the losses has been massive and on the pat level uh we the 11:43 11 minutes, 43 seconds numbers are you know lower because of that despite very strong performance. 11:47 11 minutes, 47 seconds Just wanted to understand an update on Ramagundam. Thank you. 11:51 11 minutes, 51 seconds In this quarter uh Ramagundam project was uh under shutdown uh for 45 days out 11:58 11 minutes, 58 seconds of 90 days. So in this quarter also we have loss of around uh 25 crores. But uh 12:06 12 minutes, 6 seconds in the third quarter the project that project is plant is going well and we are expecting profit in the third 12:14 12 minutes, 14 seconds quarter and we are expecting and we are definitely expecting third quarter will give profits. 12:21 12 minutes, 21 seconds There was some technical problem. So the plant was under shutdown for particular days in the second part. 12:29 12 minutes, 29 seconds Understood sir. Thank you so much for answering the questions. All the best. Thank you. Thank you. 12:38 12 minutes, 38 seconds We take the next question from the line of Mohit Kumar from ICICI securities. Please proceed. 12:46 12 minutes, 46 seconds Yeah, good evening sir and thanks for the opportunity and congratulations on a very good quarter. So my first question 12:52 12 minutes, 52 seconds is on the bit margin for the consultancy thinking this quarter it was 28%. Is any oneoff in the any oneoff which we should 13:02 13 minutes, 2 seconds be aware of sir I could not understood actually so the 13:10 13 minutes, 10 seconds margin on the consultancy is 28% during the quarter. Yeah. 13:19 13 minutes, 19 seconds No, no, actually the margin on the consultancy a bit margin. 13:24 13 minutes, 24 seconds So actually in this quarter we have profit segment of 28%. 13:30 13 minutes, 30 seconds But if on the half yearly basis it is around 25%. 13:34 13 minutes, 34 seconds And we are sure that we will be able to uh secure our margin of uh around 25% on 13:41 13 minutes, 41 seconds overall basis in the consultancy segment and in the LST segment we are maintaining the segment profit of 6 to 7%. 13:51 13 minutes, 51 seconds Understood sir and say any outlook on the domestic uh domestic consultancy order inflow or pipeline 14:00 14 minutes uh we were also there was also an IOC parad phase 2 project uh is the tender out 14:08 14 minutes, 8 seconds Mr. Mr. M s m with respect to the IO parade there's no tender is going to come out it is we are in the phase one 14:16 14 minutes, 16 seconds of execution as soon as the phase one is completed they will have the uh their management approval and they will proceed with the phase two the both the 14:25 14 minutes, 25 seconds phases has been awarded to us it's that we'll get the work order for the phase two subsequently when the phase one is completed so phase one is progressing at 14:34 14 minutes, 34 seconds at this point of time is it in our Okay, understood sir. Is he right to say that 14:41 14 minutes, 41 seconds the phase one was merely 1000 cr worth of project and phase two will be much much larger. If I'm not wrong, it should 14:48 14 minutes, 48 seconds be around 900 cr. And we booked in this fiscal [clears throat] sorry booked in this fiscal year. The 14:56 14 minutes, 56 seconds balance phase two or next year next fiscal year. 14:59 14 minutes, 59 seconds It should come towards the end of this fiscal year. Towards the end it should come because the phase one is in progress and 15:08 15 minutes, 8 seconds we are going to submit the reports the study reports and then they will take the board approval and then go decide on 15:15 15 minutes, 15 seconds the proceeding on the job. So we hopeful that by the end of this financial year should be should be done phase one should be done and they should get the 15:23 15 minutes, 23 seconds clearance or otherwise it would be early next financial year it should be awarded and say any other last domestic pipeline 15:30 15 minutes, 30 seconds order pipeline uh domestic ordering pipeline which we are looking at in H2 or 27 15:38 15 minutes, 38 seconds uh you you have this andra refinery which is going on we are working on this feasibility study hopefully uh the 15:45 15 minutes, 45 seconds second ph this study is accepted then they will come with the implementation phase. Similarly uh there there's 15:53 15 minutes, 53 seconds there's a petrochemical complex ABCPL they're thinking of expansion they could tender could come or there could be some 16:00 16 minutes small specialtity chemical projects there various studies have been done by IOCL and they are thinking of implementing the various specialtity 16:09 16 minutes, 9 seconds chemical projects so those are expected to come in times to in this this financial year. 16:16 16 minutes, 16 seconds Understood sir. Thank you and all the best. So thank you. Thank you. 16:23 16 minutes, 23 seconds Thank you. We take the next question from the line of Pratik from Intel Sense. Please proceed. 16:31 16 minutes, 31 seconds Uh yes sir. Uh my question was on uh the ride back that we have done. Uh think about 35 crores of rideback. Uh can you 16:39 16 minutes, 39 seconds sir give a light on as to uh which project this was and uh like when was this when was the provision actually 16:46 16 minutes, 46 seconds made uh in the past for this 35 cr amount. 16:50 16 minutes, 50 seconds Actually this provision relates to one of the our project at Tangot refinary Nigeria. So that provision is kept for 16:58 16 minutes, 58 seconds the our defect loyalty period. Whenever this defect leavity period is over, client releases our bank guarantee and 17:06 17 minutes, 6 seconds then provision is reversed. So client is uh reversing our uh uh bank guarantee in the peace mill basis. So so in this 17:15 17 minutes, 15 seconds quarter we have got the provision reverse of 35 cr based on the uh reduced liability on this project. 17:25 17 minutes, 25 seconds And sir uh like you said it's on a peace meal basis. Is any uh other amount that is uh we are expected to receive on this? 17:33 17 minutes, 33 seconds Huh? Small portion is balanced that will be released in the due course of time maybe in this quarter or next quarter. 17:40 17 minutes, 40 seconds Okay. Just sir one last question. Uh sir in our last phone call we had mentioned that there were several uh projects which were you know in advanced 17:47 17 minutes, 47 seconds negotiation stage. So uh in this uh like this quarter orders uh have those materialized or uh still uh I mean we are expecting those kind of orders. 17:58 17 minutes, 58 seconds Uh you can see our order book of uh 13,000 cr definitely uh some of the orders have been matured and in this 18:06 18 minutes, 6 seconds quarter we have already uh uh got the order of uh 3600 3700. 18:13 18 minutes, 13 seconds So definitely our efforts are uh fruitful and we have got some of the order. 18:20 18 minutes, 20 seconds Okay. Thank you sir. 18:24 18 minutes, 24 seconds Thank you. We take the next question from the line of Sakit Kapoor from Kapoor in co please proceed. Yeah, 18:34 18 minutes, 34 seconds namaskar team opportunity sir. Firstly sir, we were also looking for some uh 18:40 18 minutes, 40 seconds diversification in terms of uh uh moving away from the oil refining space and then looking for the hydrogen uh 18:49 18 minutes, 49 seconds hydrogen opportunity going. So where where are we? Some work was also done earlier uh which were informed in some 18:58 18 minutes, 58 seconds some some forum by the MD. Correct me there sir if I'm with the information 19:06 19 minutes, 6 seconds uh with respect to the diversification definitely we have done lot diversification in this segment we have uh moved out of uh basically the 19:14 19 minutes, 14 seconds hydrocarbon today our infrastructure business is almost more than uh the hydrocarbon business that's a major diversification with respect to the new 19:22 19 minutes, 22 seconds areas which we have talked about like hydrogen or coal gasification or biorefinery the biio-refinery you know 19:29 19 minutes, 29 seconds that we have already done one bio-refinery bamboo based biio-refinery right this year we have been recently we have been awarded one assignment for 19:37 19 minutes, 37 seconds coal gasification uh from the coal to SNG by NTPC assignment which we are executing we're 19:45 19 minutes, 45 seconds anticipating this kind of assignments uh from other clients also bidding in the bidding process for various projects of 19:52 19 minutes, 52 seconds this sort right when we look at our uh uh invest capital invest ment in the various DV 20:01 20 minutes, 1 second Ramagundam fertilizer is there and then we have a small stake in the Naligra refinery also. So 20:10 20 minutes, 10 seconds what has been the contribution in any if any in terms of any dividend or and how is the performance there uh there I 20:17 20 minutes, 17 seconds think so our major investment is for this 4% stake uh to the tune of 800 30% 20:28 20 minutes, 28 seconds yeah it will be coming in the next quarter dividend will be coming in the next quarter so they are basically in the expansion phase so they are giving 20:36 20 minutes, 36 seconds the limited dividend in the Last financial year they have given the substantial dividend but going forward they are investing the money for uh 20:44 20 minutes, 44 seconds their new project. So uh whatever dividend they have declared for the last financial year that will be coming in the next quarter. 20:54 20 minutes, 54 seconds Okay. So what was the amount last year how much we have received in this year? Around 20 cr will be coming. 21:01 21 minutes, 1 second Okay. Is there any ch any we will hold on to this minority stake of four 4% in the total realm of things we are only 21:10 21 minutes, 10 seconds holding 4% of the uh entity so or or we can also look forward uh for the uh 21:17 21 minutes, 17 seconds disinvest my divesting this uh actually at this moment we have percentage of 4.37% 21:26 21 minutes, 26 seconds and whenever opportunity comes uh we will review Okay. And also sir, we have two upstream 21:35 21 minutes, 35 seconds assets investment also under MEL 9. So already you have mentioned that uh 21:42 21 minutes, 42 seconds during the building stage uh there was that the project cost was envisaged at 300 300 cr as mentioned your presentation. So we have not invested 21:51 21 minutes, 51 seconds anything on these assets as of no we are not investing any further basically whatever investment I done is 21:58 21 minutes, 58 seconds done. So we are not anticipating any further investment in these blocks. 22:04 22 minutes, 4 seconds And lastly the uh with the reversal of this uh 35 uh cr because of the Nigerian 22:10 22 minutes, 10 seconds no defect uh project which you mentioned to the earlier participant that means uh net of uh that has moved up the profit 22:20 22 minutes, 20 seconds by that amount. So we need to uh factor in that number uh in terms of the profit for profitability that is the 22:29 22 minutes, 29 seconds actually reversal of provision is a continuous process because because provisions are reversed 22:36 22 minutes, 36 seconds whenever defect liability period of the projects is over. So it's a routine business for some of the provisions are 22:43 22 minutes, 43 seconds created and some of the provisions are reversed. So uh this is not a cause of worry for E. So what is the net of uh 22:52 22 minutes, 52 seconds impact? How much provision we have made if any for this quarter or for the first half and how much have been reversed in totality? 22:58 22 minutes, 58 seconds For this quarter it is uh reversed on overall basis I think it is minus 12. 23:04 23 minutes, 4 seconds Yeah but in the last last quarter it was on positive side. So sometimes it is on positive side sometimes it is on uh 23:13 23 minutes, 13 seconds negative side. As per contractual provision we create the provision and and as per the contractual provision we write back the provision. So this is a 23:20 23 minutes, 20 seconds continuous process over the tenor of the project the provisions are created when the project is completed and in case any liability does not come we reverse that. 23:30 23 minutes, 30 seconds So it's a basically a continuous process. 23:33 23 minutes, 33 seconds In the coming time some more projects are uh going to be closed or defect period is going to be over. So it's a continuous process. 23:42 23 minutes, 42 seconds Right. And the lastly on the cash on the books uh and what steps are we taking? 23:49 23 minutes, 49 seconds How can we create value through that cash through through sharing with investors or what is the best possible way? What is the closing balance is the 23:57 23 minutes, 57 seconds cash balance we have and uh what are the what how can how are you looking forward to deploy that the same? 24:06 24 minutes, 6 seconds U currently uh all the cash is uh being deployed as per DP guidelines and uh we 24:14 24 minutes, 14 seconds are constantly looking for the investment opportunity where the capex are lower and uh standalone facility 24:22 24 minutes, 22 seconds whenever we get a good opportunity definitely management will consider for the investment of the same like NRL and 24:30 24 minutes, 30 seconds RFC and we are constantly looking for closing balance that Can you can book 24:37 24 minutes, 37 seconds cash on cash and book 900 to 1,000? It is uh between 900 cr to 1,000. 24:47 24 minutes, 47 seconds Right. Thank you, sir. Uh all all the best. Okay. Thank you. 24:54 24 minutes, 54 seconds Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a 25:02 25 minutes, 2 seconds question, you may press star and one on your touchstone telephone. 25:13 25 minutes, 13 seconds I repeat, ladies and gentlemen, in order to ask a question, you may press star and one on your touchstone telephone. 25:29 25 minutes, 29 seconds We take the next question from the line of S. Romesh and individual. Please proceed. 25:38 25 minutes, 38 seconds Good evening and thank you very much and congratulations on your results. So if you look at the split between uh the turnkey and the consulting uh income. So 25:48 25 minutes, 48 seconds if if your turnkey uh revenue share is higher, it is a drag on your margins, right? you are talking about single digit margin. So as a strategy um how do 25:57 25 minutes, 57 seconds you view the split between uh the uh two revenue streams from consulting and turnkey uh and um so and how do you see 26:07 26 minutes, 7 seconds your overall strategic uh you know objective of maintaining ROC for the business uh based on this blend? 26:16 26 minutes, 16 seconds Actually uh it is definitely we have more segment profit in consultancy segment and uh less in uh LSTK uh 26:26 26 minutes, 26 seconds business segment but uh you know in the Indian economy there is limitations on the consultancy business because at one 26:34 26 minutes, 34 seconds times mega projects are not more than two or three. So whenever we are having opportunity in India in the consultancy 26:42 26 minutes, 42 seconds business definitely we are grabbing it and we are expanding uh our footprints 26:49 26 minutes, 49 seconds in international market also uh for the consultancy business and with the balanced man hours uh we are doing the 26:57 26 minutes, 57 seconds LSTK job uh uh so that uh we can have a good turnout as well as uh good bottom line also. 27:08 27 minutes, 8 seconds If you look at as a strategy we are trying to maintain uh consultancy business around minimum 50%. 27:19 27 minutes, 19 seconds So basically you are saying that overall you'll be able to sustain your ROC based on the topline growth and the cash flows. Is that right? 27:28 27 minutes, 28 seconds Basically basically LSTK gives the type top line but consultancy gives the bottom line. So we are striking a balance between the two. 27:39 27 minutes, 39 seconds Okay. So uh in terms of the accounting in turnkey projects in term when you book the income is there any ins 27:47 27 minutes, 47 seconds and how what is the percentage booking you do in terms of the overall timeline for the trunk revenue? 27:55 27 minutes, 55 seconds Actually uh in the trunk business uh turnover is coming on cost progress basis. It is not based upon the timing 28:03 28 minutes, 3 seconds or billing. Once we get the project the whole turnover is booked within 3 to four years because a mega projects take 28:11 28 minutes, 11 seconds minimum 3 to four years and that is the timeline for the uh mega consultancy as well as uh LST projects. 28:21 28 minutes, 21 seconds Okay. So okay fine. So in terms of your uh investment holding you're getting about 12% return if you look at the other income and the value of the 28:28 28 minutes, 28 seconds investment numbers. So uh is there any strategic rational for holding on to these investments you know in Ramagunda 28:36 28 minutes, 36 seconds fertilizers for example or other companies even that the returns are not really what uh you would expect from 28:43 28 minutes, 43 seconds equity investments. Uh so yeah what is the uh management thought process on the equity investments? Uh do you expect the 28:52 28 minutes, 52 seconds returns to go up in future? uh or is there a thought process in terms of uh exiting some of the investment which may not be productive? 29:01 29 minutes, 1 second Actually uh I think Ramakundam project Ramakundam is a very good uh uh investment because India is uh uh 29:11 29 minutes, 11 seconds filling short of URA and uh Ramakundam is able to generate minimum profits of 29:18 29 minutes, 18 seconds 500 cr on annual basis. uh but uh we are facing some technical problems uh that's 29:26 29 minutes, 26 seconds why uh project is going uh for the shutdown on time to time basis but we have shorted out the issue and in the 29:33 29 minutes, 33 seconds next quarter itself in the in this quarter itself the plant will generate the profit so uh this is not a question 29:42 29 minutes, 42 seconds of worry for the because uh our investment is safe in the pakunda project 29:50 29 minutes, 50 seconds okay thank you very Yeah, sorry. We'll go ahead. Yeah. 29:54 29 minutes, 54 seconds Thank you. [clears throat] Thanks a lot and I wish you all the best. 30:02 30 minutes, 2 seconds Thank you. We take the next question from the line of Mohit Kumar from ICICI securities. Please proceed. 30:09 30 minutes, 9 seconds Yeah. Hi, thanks for the opportunity once again. Uh so, so the question this Rama Gundam I think was making profit 30:16 30 minutes, 16 seconds for last couple of years, right? So uh so what has happened in last two quarters the losses have been the first 30:23 30 minutes, 23 seconds quarter were 8 cr I think second quarter is only widened right uh so is it fair to expect that from Q3 onwards it to 30:31 30 minutes, 31 seconds start normal profit or do you think this will continue for some more time actually we are facing some problem in 30:38 30 minutes, 38 seconds stabilization and uh definitely you are right in the first quarter there was shutdown and in the second quarter uh 30:47 30 minutes, 47 seconds there was shutdown also So for the 45 days but now we have shorted out the problems and now plant is running well 30:54 30 minutes, 54 seconds and definitely we are going to get profit in this part. 31:00 31 minutes Understood. So the second question is on the on the order intake guidance for the full year. I think we spoke I think we 31:07 31 minutes, 7 seconds have guided for broadly 8,000 8,000 cr kind of order intake. uh is it fair is 31:15 31 minutes, 15 seconds it fair to assume that PNC will be close to 5,000 cr order inflow for the entire 31:23 31 minutes, 23 seconds fiscal or will it be lower number you are talking about the order inflow 31:31 31 minutes, 31 seconds order inflow order inflow order inflow for the for the entire for the entire fiscal year 26 uh out of 8,000 cr how 31:39 31 minutes, 39 seconds much could be the consultancy order inflow uh out of out of 8,000 cr it would be 31:47 31 minutes, 47 seconds definitely consultancy would be somewhere around 50%. It's typically we take the balance of 50/50 31:53 31 minutes, 53 seconds sometimes it is for 40 55% 46% it depends but remains in this range itself. 32:01 32 minutes, 1 second So last year was consultancy was very good. I think we did 40 4,500 cr. So asking whether we can cross that number or do you think it will be lower than that number? 32:11 32 minutes, 11 seconds Can we can depends we definitely can. 32:15 32 minutes, 15 seconds Understood. And on the international side I think uh the sizes of orders are I think getting slightly bigger. Uh what 32:22 32 minutes, 22 seconds is the size of orders the large orders in the pipeline say in the inquiry pipeline or in the tendering stage I 32:30 32 minutes, 30 seconds think is the pipeline growing or is the pipeline is is only small small orders orders will come in bits and pieces. 32:37 32 minutes, 37 seconds So it is it is a mix of pipeline. We are working in Abu Dhabi. We are working as an engineering consultant with ethnog group of companies. We have running 32:46 32 minutes, 46 seconds agreements with them. We get various smaller assignment uh jobs. Under that we also get the bigger assignment, bigger sign bigger size jobs under that 32:54 32 minutes, 54 seconds means 300 cr, 400 cr. So it depends but we cater to all kind of jobs. We want to grab maximum so that our order is 33:04 33 minutes, 4 seconds maintained. So we we maintain the mix of that because the smaller assignments have a smaller period but it gives you 33:11 33 minutes, 11 seconds good revenue. the bigger assignments have more execution. It's it's a longer execution period. So that's one one of the opportunity but uh it it is a mix of both. 33:23 33 minutes, 23 seconds Understood. Thank you and all the best. Thank you. 33:28 33 minutes, 28 seconds Thank you. We take the next question from the line of Anup Anupam Gowami from S Life. Please proceed. 33:37 33 minutes, 37 seconds Sir uh on the consultancy order that we want the large order what is our timeline of executions for that and uh 33:46 33 minutes, 46 seconds on the whole overall uh order book how do you take it on the margins front uh for the and the execution timeline for the whole order book as well. 33:58 33 minutes, 58 seconds Uh typically any bigger a bigger project will have a time schedule of 36 to 48 months. So specifically this project uh 34:05 34 minutes, 5 seconds which we have won it is around 36 months. 34:10 34 minutes, 10 seconds So this the turnover would be divided into basically the recovery would be in 3 years time. 34:16 34 minutes, 16 seconds In the first year any new project gives only 10 to 15% or no and in the second and third year it gives uh 25 to 30% or 34:25 34 minutes, 25 seconds more and the fourth year it gives 15 to 20% or no. This is the general trend. 34:34 34 minutes, 34 seconds Okay, I'll join back. Thanks. 34:40 34 minutes, 40 seconds Thank you. We take the next question from the line of Rajesh Agarwal, an individual investor. Please proceed. 34:49 34 minutes, 49 seconds Uh sir, how much uh we have invested in Ramakundam project and what can be the annualized normal profits if everything is okay? 34:57 34 minutes, 57 seconds uh we have invested around 491 cr in Ramakundam project. Okay. 35:02 35 minutes, 2 seconds And when everything is okay, it will generate uh minimum 500 cr uh profit and our share will be 26%. 35:12 35 minutes, 12 seconds 26%. Okay. And now things are normalized. So there things things are normalized. Plant is running well. 35:20 35 minutes, 20 seconds Okay. Sir one question I want to understand on the right back suppose you this quarter we have written back 35 crores. So net net how do we understand 35:30 35 minutes, 30 seconds how much we have written back some provisions must have been made for the other orders also. [clears throat] Actually we have written back a figure 35:37 35 minutes, 37 seconds of 35 crores. Uh okay actually uh as per contract provisions are being made and whenever our defect 35:46 35 minutes, 46 seconds liability period is over we reverse the provision uh for that particular project. So in this quarter we have 35:54 35 minutes, 54 seconds reversed the one of the major project uh amount 35 cr and we have made some provisions also but overall impact is 36:02 36 minutes, 2 seconds negative negative negative how much 12 crores 12 crores. Okay. 12 more less we have 36:12 36 minutes, 12 seconds provided 12 we have reversed because reverse mode more okay 36:21 36 minutes, 21 seconds and sometimes it is created it is positive sometimes it is negative it depends for understood. So without reversal is aa 36:29 36 minutes, 29 seconds in the consultancy business margin. 36:36 36 minutes, 36 seconds So part of part of IIDA part of part of operating profit okay the consultancy IA will be how much 36:44 36 minutes, 44 seconds separately 25% basically it's a segment we are publishing okay the segment profit is 36:52 36 minutes, 52 seconds 28% in this quarter oh understood understood sir thank you and how's the 36:59 36 minutes, 59 seconds order outlook or future order outlook order outlook is good uh we'll be touching more than 8,000 000 we are we 37:07 37 minutes, 7 seconds are working towards it. We'll meet the last year's target and uh order book has already exceeded with respect to the last one. So it's further going to increase. Let's hope for the best. 37:18 37 minutes, 18 seconds What can be the annualized run rate in the turnover including both trunky and consultancy 6,000 K 8,000 annualized turnover. 37:28 37 minutes, 28 seconds Huh? You know our annualized turnout for the last year is 3,000 cr and we are 37:35 37 minutes, 35 seconds expecting more than 25% growth in this year. So it may be around uh 3,800 39 cr 38 3900. 37:45 37 minutes, 45 seconds Okay. Okay. Thank you sir. Thank you. Thank you. 37:53 37 minutes, 53 seconds The next question is from the line of Samar Kandelwal from ICICI securities. Please proceed. 38:01 38 minutes, 1 second Uh thank you for this opportunity. Uh sir, could you share some color on how our order trajectory from domestic markets and international markets? 38:12 38 minutes, 12 seconds domestic uh we have told you that uh this year as of now uh we have booked the order worth of 4,000 crores out of 38:20 38 minutes, 20 seconds which approximately around 15 or 1,800 cr is from the LSTK segment rest is from 38:27 38 minutes, 27 seconds the consultancy and consultancy uh we have overseas has contributed more than 1,680 crores. 38:36 38 minutes, 36 seconds Understood. Uh and going forward, how do you see it to be? Uh we'll be going towards the last year's 38:45 38 minutes, 45 seconds uh figure of 8,000 cr. We should cross that. 38:51 38 minutes, 51 seconds We're already on 4,000 as of now. 38:56 38 minutes, 56 seconds Um sir I meant um do we see more opport domestic or how is it is it balanced 39:04 39 minutes, 4 seconds from both the international has lot of opportunities we are focusing uh on the international market aggressively at the 39:12 39 minutes, 12 seconds same time domestic market also has opportunities we are working on them it is like that sometimes the activities uh 39:19 39 minutes, 19 seconds some of the contracts major contracts we were negotiating has been concluded some more are we are discussing it could uh get realized by the end of this financial year. 39:32 39 minutes, 32 seconds Okay. Okay. Thank you. That's very helpful. Thank you for the question. Thank you. Thank you. 39:40 39 minutes, 40 seconds We take the next question from the line of Sakit Kapoor from Kapoor and Co. Please proceed. 39:45 39 minutes, 45 seconds Yes sir. Only a small clarification since we are having this equity investment uh in Ramagundam only or 39:53 39 minutes, 53 seconds Ramagundam fertilizer. So these are only subbook entries that uh that we have to pass through with respect to the equity 40:01 40 minutes, 1 second holding we have. So even if the company reports uh the estimated profits which you you have been uh explaining we will 40:09 40 minutes, 9 seconds be again uh booking uh only book profits it is only when they they declare dividend. Yeah. Yeah. Please correct me 40:15 40 minutes, 15 seconds sir. On the consolated front, we are take uh we are consolating only bottom line figure. Turn is not being included 40:25 40 minutes, 25 seconds in the y turn or not and uh RFC has not started the dividend yet. Whenever 40:32 40 minutes, 32 seconds dividend will be declared that will be taken into other income. 40:37 40 minutes, 37 seconds Right sir? No. So my question was whatever losses of profit which we are booking because of our equity investment 40:44 40 minutes, 44 seconds are only the book book increase there is no actual cash impact on that is a part of our consolidated res 40:52 40 minutes, 52 seconds whenever they will declare the dividend that will come into the company and will be shown as other income in the standalone financial 41:00 41 minutes as of now there one can understand that for whatever 491 cr we have invested that is the equity 41:07 41 minutes, 7 seconds as we hold in our stock market there is no return as of now till they start releasing out any cash that is what the understanding is 41:16 41 minutes, 16 seconds whatever loss in RFC that is being offset with our profit on the consolated basis equity is intact 41:24 41 minutes, 24 seconds okay so that we are not getting any advantage from the losses are the tax liability on our consulted number get 41:31 41 minutes, 31 seconds reduced because of those or they are only the book end nothing whenever nothing so that is What my question is 41:39 41 minutes, 39 seconds yeah yeah yeah other than that this is only a book book entry it has no no other reference yeah book entry for the consolidated 41:47 41 minutes, 47 seconds financials in the standalone there is no entry because it's a temporary loss in case it was permanent loss then entry also provided 41:55 41 minutes, 55 seconds right we have also participated in the rights issue uh for uh NRL also in the first quarter so we have retained our uh 42:04 42 minutes, 4 seconds uh stake only or is our state valued To what extent? 42:08 42 minutes, 8 seconds Maintaining we are maintaining our percentage and based upon that whatever uh right issues there we have subscribe 42:16 42 minutes, 16 seconds that thank you sir and all the best to the team sir whenever thank you thank you 42:25 42 minutes, 25 seconds thank you we take the next question from the line of Anupam Gowami from third live please proceed. 42:35 42 minutes, 35 seconds Thank you sir for giving the opportunity again. So if you can give us a little color on the uh whole oil and gas capex 42:44 42 minutes, 44 seconds uh in the near term or uh how is it in the domestic as well as in international and where are we targeting 42:51 42 minutes, 51 seconds our outlook uh if you see that um EPCL is investing refining in the refinary comparative 42:59 42 minutes, 59 seconds chemical complex is around investment is around 95,000 crores similarly the bame refinery which was there it was around 43:06 43 minutes, 6 seconds 75,000 it is around 72 32,000 cr ISL in all has invested around 1.66 crores in 43:12 43 minutes, 12 seconds various projects various projects is investing 50,000 cr uh similarly uh you 43:20 43 minutes, 20 seconds have this OMGC Gujarat Jamagar they're also investing uh they're thinking of Petcam project there uh it is around 80 43:30 43 minutes, 30 seconds to 80,000 crores to 1 lakh per smaller various independent refineries could be there somewhere around 1.25 25 crores 43:37 43 minutes, 37 seconds and also there are a lot of uh opportunities are there. Many studies have been done in past and those are still under consideration with the 43:46 43 minutes, 46 seconds clients. So if they get materialized let's hope for the best. Uh it should it should be um implemented. Also there has 43:54 43 minutes, 54 seconds been some um issues with respect to the uh this uh uh the tariff issue which is 44:01 44 minutes, 1 second going on. So some of the private private ventures for to set up the petcam plants based on the imported ethane they have 44:09 44 minutes, 9 seconds got stalled until the time this tariff issue is resolved it will take some time to settle. So when this tariff is 44:16 44 minutes, 16 seconds resolved hopefully it should get resolved and then we should see that those investment getting realized in in times to come. 44:26 44 minutes, 26 seconds Got it sir. Thank you so much. 44:31 44 minutes, 31 seconds Thank you. We take the next question from the line of Mohit Kumar from ICICI securities. Please proceed. 44:40 44 minutes, 40 seconds Yes sir. Thanks for the opportunity once again. Uh my first question is on the uh uh do you think there will be a dilution 44:49 44 minutes, 49 seconds on the consultancy margin due to rising international mix or is it fair to expect that we'll maintain that band of 44:58 44 minutes, 58 seconds 20 to 25% uh margin in the competency on overall basis in the domestic as well 45:05 45 minutes, 5 seconds as international projects we are maintaining the uh our margin of 20 to 25%. 45:12 45 minutes, 12 seconds and we are expected to maintain it. 45:15 45 minutes, 15 seconds Understood sir. I said will there be any impact of pay commission on next year consultancy margins? 45:23 45 minutes, 23 seconds Uh that provision we are already uh taken in the accounts. So as on a date 45:30 45 minutes, 30 seconds there will not be any impact on the financials of the company but definitely uh manover will be higher then that will be looked into. 45:40 45 minutes, 40 seconds Understood. My last question. Andra Andra BPCL project. Has the location been zeroed in and can we expect the 45:48 45 minutes, 48 seconds next stage of tending in the next fiscal? 45:52 45 minutes, 52 seconds Uh it should be towards the end of this financial year or the early next year. The study is on study we are doing it. 45:59 45 minutes, 59 seconds Uh so that at point of time they are deciding the configuration and some uh environmental impact assessment studies have been on. So by the end of that 46:08 46 minutes, 8 seconds study they would take a decision and take the management approval their business decision they will take to implement that project. So it should uh 46:16 46 minutes, 16 seconds happens towards the end of this financial year or early next financial year. 46:20 46 minutes, 20 seconds Understood sir. Thank you and all the best sir. Thank you. 46:27 46 minutes, 27 seconds Thank you. We take the next question from the line of Pratik Dugar from Intel Sense. Please proceed. 46:36 46 minutes, 36 seconds Thank you for providing the opportunity again sir. Uh sir uh you mentioned about the oil and gas capex and uh among these 46:43 46 minutes, 43 seconds s large figures that we hear uh what would be the opportunity side that would be uh you know for EIL actually 46:53 46 minutes, 53 seconds everything all the all the figures which we see are the opportunity for us but it's a competitive word we will be 47:01 47 minutes, 1 second bidding for them and we get some but the these are the staggered opportunity they are not coming in one way because it's a 47:08 47 minutes, 8 seconds large investments many of the projects will come in the phases so we anticipating that we should be getting good business out of it. 47:19 47 minutes, 19 seconds Okay. So so my understanding was that I mean uh for these projects uh whatever is like the construction we are handling 47:27 47 minutes, 27 seconds mostly the consultancy part or when we take up the turnkey uh how how are we bidding for that sir? No any of the 47:35 47 minutes, 35 seconds project these the figures which we have told is the total capex part which includes the cost of the land and various other costs including the cost 47:44 47 minutes, 44 seconds of the plant. Consultancy is very smaller part of it. So we uh primarily focus on the consultancy services. We 47:51 47 minutes, 51 seconds don't get into the construction. We are the consultant. We we get into the concept to commissioning of that project starting from the studies to 47:59 47 minutes, 59 seconds implementation of the we get the work done uh through the contractors. So uh we work as a basically owners engineers or a project management consultant 48:07 48 minutes, 7 seconds whichever way you say uh we we are the basically extended arm of the client in implementing that project but construction is done by somebody else is 48:16 48 minutes, 16 seconds the specialized consultant or the EPC contractors we are not into the business of construction. 48:22 48 minutes, 22 seconds Got it sir. So just like uh as a thumb rule I mean what would be the percentage of uh consultancy for a given say project cost? uh can we get a guidance 48:32 48 minutes, 32 seconds on like what would be the thumb rule for say some percentage figure of the total cost of the project? 48:37 48 minutes, 37 seconds So it all depends in which mode it is being executed. Uh because it could be uh if you the large you see the larger project it could be 2 3%. Our service 48:47 48 minutes, 47 seconds would be 1 or 2% 3% depending on the size of the project. These are the just overall costs which are available in the market. It's like if we want to talk 48:54 48 minutes, 54 seconds about one lakh crone of the project, it's not actually the complete uh the cost on which we'll be getting the consult will be getting the consultancy 49:02 49 minutes, 2 seconds services on the bas on the on the plant and machinery cost of it. So uh if you see the overall project cost will be 1 or 2% or 3%. Depends. 49:14 49 minutes, 14 seconds Sure. Thank you sir. 49:19 49 minutes, 19 seconds Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. 49:28 49 minutes, 28 seconds Over to you, sir. Thank you. 49:36 49 minutes, 36 seconds Thank you. 49:41 49 minutes, 41 seconds Thank you. On behalf of DAM Capital Advisor Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. 49:51 49 minutes, 51 seconds Thank you very much. Thank you.