Enviro Infra Engineers Limited — Q1 FY26

Enviro Infra Engineers Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=m2sb4IPcR3I Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Envo Infragineers Limited Q1 FYI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an 0:24 24 seconds operator by pressing star then zero on your touchstone phone. Please note that 0:31 31 seconds this conference is being recorded. This conference call may contain forward-looking statements about the 0:38 38 seconds company which are based on the beliefs, opinions and expectations of the company as on date of this call. 0:46 46 seconds These statements are not a guarantee of future performance and involve risks and uncertaintities that are difficult to 0:53 53 seconds predict. I now hand the conference over to Mr. Sanjay Jane chairman and whole time director. Thank you and over to you sir. 1:03 1 minute, 3 seconds Thank you Ash. Uh good afternoon everyone. A very warm welcome to environment 1:11 1 minute, 11 seconds Q1 F26 learning conference call. I sincerely thank you for joining us today. 1:18 1 minute, 18 seconds We are joined on this call by Mr. Manish Jen, our managing director along with the investor relations team from Atactor PR. 1:29 1 minute, 29 seconds The results presentation has already been shared and I trust you have had the 1:36 1 minute, 36 seconds opportunity to review it. As we begin the new financial year, I am proud to share that environmental engineer has 1:44 1 minute, 44 seconds maintained its position as one of India's leading player in water and waste treatment delivering high quality 1:54 1 minute, 54 seconds technologically advanced solution across countries. 1:58 1 minute, 58 seconds Our focus remains firmly on creating, recycling and reusing water, ensuring 2:06 2 minutes, 6 seconds sustainable resource management for industries and cities alike. 2:11 2 minutes, 11 seconds In Q1 F26 which secured fresh orders worth approximately 1,178 2:19 2 minutes, 19 seconds K is strong endorsement of our technical expertise and ability to execute large 2:26 2 minutes, 26 seconds complex and sustainabilitydriven project. Key among these was our for into the zero liquid discharge segment 2:36 2 minutes, 36 seconds with 395 crP project in Maharashtra. 2:42 2 minutes, 42 seconds deploying advanced ultra filtration, reverse osmosis and MVR mechanical vapor 2:48 2 minutes, 48 seconds recompression technology to achieve near total reuse of treated waste water. We 2:55 2 minutes, 55 seconds also expanded our geographical footprint adding new projects in high growth market such as Maharashtra and Odisha. 3:06 3 minutes, 6 seconds These include tertiary treatment plants, advanced ultra filtration system and long-term O andM contracts. 3:14 3 minutes, 14 seconds All designed to deliver lasting values and environmental benefits. While wastewater remained our primary focus, 3:22 3 minutes, 22 seconds this quarter also saw strategic step into the renewable energy sector by securing two solar effects, one in Maharashtra and the other one in Orisa. 3:34 3 minutes, 34 seconds This diversification complements our sustainability le approach and opens an additional 3:41 3 minutes, 41 seconds avenue for clean energy integration in our projects. 3:46 3 minutes, 46 seconds Our total execution order book stands at around 251 cr spreads across 21 active 3:54 3 minutes, 54 seconds projects backed by healthy onm portfolio of around 946 cr that provides a steady long-term revenue visibility. 4:05 4 minutes, 5 seconds With that I would now like to hand over to our managing director Mr. Manish Yen to take you through the financial and operational highlights of the quarter. 4:16 4 minutes, 16 seconds Mr. Manish, thank you Sanjay sir and good good afternoon to every one on the call. I 4:24 4 minutes, 24 seconds shall now take you through our financial performance for first quarter of FY26. 4:30 4 minutes, 30 seconds In Q1 FI 26 revenue from operation stood at rupees 241 crores reflecting a yearon-year growth of 17.4 4%. 4:41 4 minutes, 41 seconds Driven primarily by the execution of our key water and waste water treatment projects. The beta for the quarter came 4:49 4 minutes, 49 seconds in at rupees 64 cr compared to rupees 51 cr in Q1 FI25 up 25.2% 4:58 4 minutes, 58 seconds yearonear with a stable margins of 26.7%. 5:03 5 minutes, 3 seconds Profit after tax grew by 41.8% 8% year on year to 42 crores with a tax margin of 17%. 5:12 5 minutes, 12 seconds Operationally, it has been a transformative quarter with the order wins which enforce our technical capabilities in delivering complex waste 5:22 5 minutes, 22 seconds water treatment tertiary treatment infrastructure and ZL space aligning with company's goal for sustainable urban water management. 5:34 5 minutes, 34 seconds Globally over 80% of the waste water is discharge and water scarcity is set to affect more than half of world's population by 2030. 5:45 5 minutes, 45 seconds This makes our expertise in recycling and reuse not just relevant but urgent. 5:52 5 minutes, 52 seconds The waste water reuse market already valued at $22 billion is growing rapidly 5:59 5 minutes, 59 seconds and environmental engineer is at the forefront in India combining scale advanced technology and execution excellence. 6:09 6 minutes, 9 seconds Finally, I want to express the cyber fraud incidents which happened in the company amounting to rupees 11.15 cr 6:18 6 minutes, 18 seconds detected during the quarter until 1st of July. 6:23 6 minutes, 23 seconds Of this rupees 2.5 cr has been recovered. Approx. 6:29 6 minutes, 29 seconds Cr is lying seized in different accounts in which the funds got transferred. O has issued orders to bank to release the 6:37 6 minutes, 37 seconds amount seized in different accounts to EIEL account. E SI has 6:43 6 minutes, 43 seconds already been filed and NCP national crime uh national cyber crime reporting portal. 6:52 6 minutes, 52 seconds So investigations are underway. Rupees 4.95 cr has been charged under exceptional item in Q1 as a measure of 7:01 7 minutes, 1 second accountability and to avoid any financial losses to the company. Our chairman Sanjay sir and I have 7:08 7 minutes, 8 seconds voluntaryly for our remation till the losses fully recovered. We are working closely with the authorities and have 7:16 7 minutes, 16 seconds further strengthened the internal controls to prevent reoccurrence. This concludes my remark. 7:23 7 minutes, 23 seconds We can now open the floor to for questions. 7:27 7 minutes, 27 seconds Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 7:35 7 minutes, 35 seconds and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 7:43 7 minutes, 43 seconds two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:00 8 minutes The first question is from the line of Separal from askandeps Sabarwal.com. 8:06 8 minutes, 6 seconds Please go ahead sir. 8:10 8 minutes, 10 seconds So as I understand most of your contracts seem to be coming from the state government. So could you let me 8:18 8 minutes, 18 seconds know how much percentage of contracts are from the state governments and what is typically your feasible cycle? 8:27 8 minutes, 27 seconds Uh our all of the projects I will say are from the state governments only because all the state governments and 8:34 8 minutes, 34 seconds the state government bodies remain to be the owning agencies. It can be a centrally sponsored scheme or centrally 8:42 8 minutes, 42 seconds funded scheme in totality. So it will all be the state state government who 8:49 8 minutes, 49 seconds owns the these assets. Our receivable receivable cycle working capital cycle is generally in the range of around uh 8:58 8 minutes, 58 seconds 90 days. So in FY 25 uh March FY 25 we have been 9:06 9 minutes, 6 seconds able to maintain our working capital cycle at a typical level of around 90 days which covers inventory unbuilt 9:13 9 minutes, 13 seconds revenue receivables uh paid receivables and on the other side the trade payables. So uh the net 9:21 9 minutes, 21 seconds impact of this the net working capital cycle is 90 days. 9:26 9 minutes, 26 seconds It's been observed uh lately by many of the companies which we are tracking on the like some companies which are doing 9:33 9 minutes, 33 seconds JG1 projects and all those other projects where money had to come from the state government because of these 9:41 9 minutes, 41 seconds various uh income distribution schemes the government finances are stressed and 9:49 9 minutes, 49 seconds we've also I have historically seen last many like two three decades typically companies which rely rely largely on 9:56 9 minutes, 56 seconds statement projects get into a receivable issue at some stage or the other. So what strategies are you taking to protect yourself against? 10:09 10 minutes, 9 seconds Uh basically first of all I'll clarify on the GM aspect. uh in the last 10:16 10 minutes, 16 seconds financial year and starting from March 2024 there was some issue with respect to the 10:24 10 minutes, 24 seconds release of funds from the center there was an intended timeline of completion 10:30 10 minutes, 30 seconds of JGM scheme by March 24 since the scheme was not completed the general 10:37 10 minutes, 37 seconds election timelines so these were announced so because the code of conduct was in place the timeline and validity 10:46 10 minutes, 46 seconds of the scheme that was not enhanced it kept pending so the funds could not be released even in July budget uh the 10:54 10 minutes, 54 seconds timelines were not increased this has been done in the fullear budget in February 11:02 11 minutes, 2 seconds uh 2025 so there has been an issue with respect to the release of funds rather I will say the state governments were funding 11:11 11 minutes, 11 seconds but there was a slowdown or delay in release of funds from the center. So 11:18 11 minutes, 18 seconds this GGM scheme in itself is a centrally funded scheme in which a part of fund is from the center and a part of fund from 11:26 11 minutes, 26 seconds the state. Now if we look into the entire water and wastewater treatment sector in India basically this sector is 11:35 11 minutes, 35 seconds a government-driven sector. There are various types of uh government funded or 11:41 11 minutes, 41 seconds sponsored schemes is like JJM, Amrups 2, Nami Gang. So there is a different set 11:50 11 minutes, 50 seconds of central funding which is involved in all these projects. The funds used to move smoothly. 11:57 11 minutes, 57 seconds There has been just one year in the it was last financial year wherein there have been a delay. Now if we look into 12:07 12 minutes, 7 seconds the order book of environmental engineers as on first of April 2025. 12:13 12 minutes, 13 seconds So we had an outstanding order book position of 175 cr from JGM and with 12:19 12 minutes, 19 seconds execution of another uh 64 65 cr from JGM. So our net order book from JGM 12:27 12 minutes, 27 seconds remains at around 110 cr. We are not bidding for any of the projects further in JDM. We are fairly concentrating 12:36 12 minutes, 36 seconds under Amur or Nami Gang multilateral agencies projects or combination teaching plans wherein the land bank is 12:45 12 minutes, 45 seconds directly available with the government bodies or the industrial development corporation and they are having their own funds available for executing the 12:53 12 minutes, 53 seconds projects out of the 2,100 to order of order book which I think we have how much of it is 13:01 13 minutes, 1 second centrally or multilaterally funded and how much is purely by the state government. 13:09 13 minutes, 9 seconds There is not even a single project which is only the state government funed. All the projects are central driven projects 13:18 13 minutes, 18 seconds wherein some central funding is involved. If it is Nami Gang it is 100% central funding. If it is Amrut it is 13:26 13 minutes, 26 seconds 25% center along with 75% shares from state and ULB combined. 13:32 13 minutes, 32 seconds or JDM it is 50% uh from both and uh if I'm talking about CP so it is industrial 13:40 13 minutes, 40 seconds development corporations so they are having their own funds so we do have a clear visibility of funds in across the 13:49 13 minutes, 49 seconds entire order book which the company has all right thank you 13:57 13 minutes, 57 seconds thank you participants if you wish to ask a question you may press star and one on your touchstone telephone. 14:07 14 minutes, 7 seconds The next question is from the line of Mr. Anikit Jane from Yes Security Securities. Please go ahead. 14:14 14 minutes, 14 seconds Uh good afternoon sir. I have two questions. Uh number one would be uh do you plan to get into desalination or do you have the technology or 14:23 14 minutes, 23 seconds pre-qualifications to get for the desalination projects? That would be number one. 14:30 14 minutes, 30 seconds The last uh number two again after this. 14:34 14 minutes, 34 seconds Okay. Basically uh if I talk about desalination, desalination in itself is 14:40 14 minutes, 40 seconds par process to the ZD project in Maharashtra which we have back. So definitely we are entering into this 14:49 14 minutes, 49 seconds particular segment. We'll be entering into some joint ventures right now for bidding and entering into desalination 14:56 14 minutes, 56 seconds projects as well. And we will we do have the technical capabilities available for the execution. So once we do have the 15:04 15 minutes, 4 seconds experiences with us in the desalination sector and the arrow sector then we will be in a position to build on our own. 15:12 15 minutes, 12 seconds Understood sir and the second one would be uh since you have done your first ZLD project so I just wanted to understand 15:20 15 minutes, 20 seconds what is the margin differential between ZLD and usual STP or WTP projects. 15:27 15 minutes, 27 seconds are much more margin operative than the usual positives. 15:34 15 minutes, 34 seconds I mean basically if you see the way the complexity of any of the project will increase so definitely the margin profile is expected to improve. 15:46 15 minutes, 46 seconds So a val project in itself is highly technically competitive project. So the margins in it will be equivalent to to 15:55 15 minutes, 55 seconds the margins that you project for any of the common FM plant projects. So it will be in the range of somewhere around 30%. 16:04 16 minutes, 4 seconds That's pretty do you expect to or are there uh more orders of tenders in the 16:11 16 minutes, 11 seconds market and can we expect more orders this year or probably next year? 16:19 16 minutes, 19 seconds There are clearcut guidelines from NGT to go for ZLD plants only for across all the industrial areas. 16:29 16 minutes, 29 seconds So one day or the other all the industrial areas will have to switch over to relative technologies itself. So 16:37 16 minutes, 37 seconds this opens up a very very big market in India for this particular sector. So that the water 16:44 16 minutes, 44 seconds treated water which is fermented so that is reused in the industries again. So this is going to gain momentum in future. 16:54 16 minutes, 54 seconds Understood sir. So I just I have one more. So your order book of 25 51 cr. So what is the tentative time frame to 17:02 17 minutes, 2 seconds execute this orders uh this backlog and how much of this will be executed this year? 17:09 17 minutes, 9 seconds Uh let me break into two parts. First of all, there was an order book of 1185 cr which we carried from the last financial 17:17 17 minutes, 17 seconds year as on 1st of April which was available to us. So basically that order book that time that there was a timeline 17:25 17 minutes, 25 seconds of 24 months for its execution. So when we are carrying it from the past so I'll 17:32 17 minutes, 32 seconds say for this particular uh order book the timeline is almost this financial year. So around 80 85% of this order 17:40 17 minutes, 40 seconds book uh will convert into revenues. The fresh order which we have read 1178 17:47 17 minutes, 47 seconds crores in the current quarter or 10 in uh 4 months. So the timeline for execution is uh 24 months. 17:57 17 minutes, 57 seconds Okay. 17:59 17 minutes, 59 seconds So probably we'll u reach for 1400 or 1500 crores of this year. Yeah, definitely. 18:09 18 minutes, 9 seconds Uh if you see in the first quarter our revenues have been 240 crores. So this 18:17 18 minutes, 17 seconds revenue has got transpired from that order book of 1185 crores. If Q2 will al 18:23 18 minutes, 23 seconds also be almost similar once Q3 and Q4 when the execution for the new projects 18:30 18 minutes, 30 seconds will also start. So there will be a sharp increase in the top line that we expect from Q3 and onwards. 18:40 18 minutes, 40 seconds Understood sir. Thank you so much for answering questions and all the best. Thank you. Thank you. Thank you. 18:48 18 minutes, 48 seconds The next question is from the line of Mr. Dh Kurikarni from Fside Group. Please go ahead. Uh hello sir. Am I audible? 18:57 18 minutes, 57 seconds Yeah. Uh sir uh thank you for giving me the opportunity you know good set of numbers as well. So I just want to understand uh how do you think the 19:05 19 minutes, 5 seconds outlook is for the next say two three years because we have been seeing witnessing you know some slowdown across some certain sections uh in in this 19:13 19 minutes, 13 seconds space and which is getting reflected in the stock price of various uh companies you know including ours. So what's your outlook here for the next 2 three years? 19:22 19 minutes, 22 seconds Uh do you think there are enough projects that we can bid for and win? 19:27 19 minutes, 27 seconds Yep. if you could you know elaborate something on that. 19:32 19 minutes, 32 seconds First of all let me uh give you update on the financial numbers. If you could 19:38 19 minutes, 38 seconds just uh recall the my speech wherein I confirmed you the numbers for the first quarter. So we have been we have had a 19:47 19 minutes, 47 seconds splendid quarter wherein the top line has increased by 17% a beta by 25% and then P by 42%. 19:57 19 minutes, 57 seconds So this in itself says that the performance of the company is is good enough going 20:05 20 minutes, 5 seconds forward uh there are number of opportunities which are getting opened up. We are 20:12 20 minutes, 12 seconds increasing our geographical presence. We are entering into reuse z. 20:19 20 minutes, 19 seconds There are a number of projects which are coming up in this sector. So the slowdown in at least this water and 20:27 20 minutes, 27 seconds wastewater treatment market in India that is not happening rather there is a sudden jump in the number of projects 20:36 20 minutes, 36 seconds we have. Uh 1178 is the order book which we have won. 20:42 20 minutes, 42 seconds There are number of projects for which we have submitted our bids where again we are L1 we'll be getting orders we are 20:49 20 minutes, 49 seconds bidding for the projects on a continuous basis and the projects are coming up so definitely it shows a lot of traction is 20:57 20 minutes, 57 seconds there in this particular segment and it will continue since reuse of water in this in the industrial segment this is 21:06 21 minutes, 6 seconds also gaining a momentum now okay the third So do you think is it still possible for us to maintain at 21:14 21 minutes, 14 seconds least say 30 40% revenue growth for the next two three years uh with the kind of out group we just shared? 21:22 21 minutes, 22 seconds Yeah definitely uh we look forward to having this 35 to 40% career growth for at least next five years. So we 21:30 21 minutes, 30 seconds understand till 2030 definitely we uh we have that vision and we can look forward to this type of growth. And uh what 21:39 21 minutes, 39 seconds about beta margin and capex? What do you want to say about that? like uh can we have similar levels of margins for 21:46 21 minutes, 46 seconds higher margins and uh whether uh cipex uh you know will it cool off or do you think it will sustain at current levels 21:56 21 minutes, 56 seconds first of all I will say uh when I was asked repeatedly if the margins beta margins to the level of around 22 to 24% 22:05 22 minutes, 5 seconds which we used to grow project time and again these are sustainable so basically 22:11 22 minutes, 11 seconds uh even after the IPO and three quarter results are already there. Similar type of margins are coming repeatedly. 22:20 22 minutes, 20 seconds We want to ensure that these margins are quite possible and we will continue to sustain these type of margins. Our 22:29 22 minutes, 29 seconds guidance on the margin front on aa margins will always remain to be in the range of 22 to 24%. 22:37 22 minutes, 37 seconds However, we have been in a position to have still better margins against this. to guidance what we are giving. 22:45 22 minutes, 45 seconds Okay. And about capex like what what kind of a capex you expect for this year and next year in absolute number 22:54 22 minutes, 54 seconds basically for the execution side if I change so checks uh these are not bloated at all. So we are moving on a 23:04 23 minutes, 4 seconds satellite model. we do have uh that appetite of going ahead for some of the 23:10 23 minutes, 10 seconds hemp projects. So we will limit our hemp projects to an extent that our debt to equity ratio doesn't get bloated to 23:18 23 minutes, 18 seconds means there should not be an extreme we'll keep it at a level of somewhere around one. 23:25 23 minutes, 25 seconds Okay. Uh that's really sounds great. So thank you very much and all the best. Thank you. 23:32 23 minutes, 32 seconds Thank you participants. If you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Mr. 23:42 23 minutes, 42 seconds Manish Gupta from Equinox Investment Advisors. Please go ahead. Hello sir. Am I audible? 23:49 23 minutes, 49 seconds Yes sir. Please go ahead. 23:52 23 minutes, 52 seconds Uh sir uh thank you for taking my question sir. Uh in the first quarter we have like received 1100 crores of 23:59 23 minutes, 59 seconds orders. So for the rest of the year uh how much order inflow would you reasonably expect 24:07 24 minutes, 7 seconds for this financial year? We have given an order guidance in the range of 2,500 crores. So around 1,200 cr is order book 24:16 24 minutes, 16 seconds which we have got. So there is a balance of around 1,300 cr which we are expecting. Uh we do expect that we will 24:25 24 minutes, 25 seconds be in a position to outdo this number as well. So at least for the time being I will say another 1300 cr is the order 24:33 24 minutes, 33 seconds book what we are looking for uh as soon as possible. All right. 24:41 24 minutes, 41 seconds So uh while government remains our uh largest or let's say even the only customer that we have uh is there any 24:49 24 minutes, 49 seconds relevance of our products in the private sector? Any chance that uh the company can drisk or diversify into private sector sir? 25:00 25 minutes Basically the sector in itself because it is more of a social sector so it will drive maximum traction from the 25:08 25 minutes, 8 seconds government itself. But there are some opportunities which are which are definitely available in the B2B segment 25:15 25 minutes, 15 seconds like there can be some water treatment opportunities coming up from the thermal power plants which are being set up or 25:22 25 minutes, 22 seconds the refineries through maybe ICL or BTCL. So wherein the company can find its interest. So we will always be open 25:32 25 minutes, 32 seconds to entering into that segment as well as and when the accession. 25:37 25 minutes, 37 seconds All right sir. And so my last question would be that uh what do you feel uh are the uh main challenges in front of the 25:46 25 minutes, 46 seconds company in the next few years? Is it uh high competitive intensity when you are bidding for tenders or is it uh the slow 25:56 25 minutes, 56 seconds uh payment from uh uh government organizations or any other factor that you would want to highlight? 26:07 26 minutes, 7 seconds uh I will say last financial year FI 25 SH if I see from the cash flow point of view was a bit challenging and those who 26:16 26 minutes, 16 seconds were mainly in the JGM they were having some tough times but we were having a 26:23 26 minutes, 23 seconds product mix in the some JGM nami gang amro multilateral CTPs so that way we 26:31 26 minutes, 31 seconds were fairly comfortable our cash flow cycles were also very smooth and we could move on and we could achieve a 26:39 26 minutes, 39 seconds decent growth in the company. So as such if I see forward so if I say the worst 26:45 26 minutes, 45 seconds is over and that we uh our order book in JJ is also now that is too small and all 26:53 26 minutes, 53 seconds other sectors uh all other missions the funds are sufficiently available and funds are being released on time. So as 27:02 27 minutes, 2 seconds such we don't foresee such type of challenges. 27:06 27 minutes, 6 seconds Now if we see to the level of work which is coming up. So uh I can say 27:13 27 minutes, 13 seconds competition is always there but the demand supply gap in itself says that uh the decent profitability 27:22 27 minutes, 22 seconds that can be easily ensured in the good projects are always available for us to continue bidding and bagging the new 27:30 27 minutes, 30 seconds projects. So that way I don't foresee that there are any challenges which we foresee at all. 27:37 27 minutes, 37 seconds All right. And so finally could you throw some color on the cyber crime fraud that has happened is it uh uh I 27:45 27 minutes, 45 seconds mean what was the nature of the fraud and other details if you could share? on maximum I have covered in my seat. 27:54 27 minutes, 54 seconds Basically a person impersonated as being Manishian and could put my DP 28:01 28 minutes, 1 second on his mobile and instructed team for some funds to be transferred. So it has been an unfortunate incident which has 28:10 28 minutes, 10 seconds happened in the company. So the main part to mitigate for we have taken up 28:17 28 minutes, 17 seconds the basic mitigation measures around uh 2.5 K has come back into the 28:23 28 minutes, 23 seconds company another 6 K is what we look for maybe another 1 month's time or so it should come back and investigations are 28:32 28 minutes, 32 seconds already underway and um just to mitigate any financial losses to the company myself and Sanjay G we have taken a hit 28:41 28 minutes, 41 seconds on our and we are solving our shell race. There was a next part of the requirement to strengthen the process or 28:49 28 minutes, 49 seconds the SOPs. So that we have done so that this process of cyber cr does not impact the company in future at all. 29:00 29 minutes All right sir sir. Thank you very much and all the best sir for the recovery as well as the future results of the company. Thank you. 29:07 29 minutes, 7 seconds Thank you. Thank you. 29:09 29 minutes, 9 seconds Thank you. The next question is from the line of Mr. Dhan Jay from Sunnidi Securities. Please go ahead sir. 29:18 29 minutes, 18 seconds Yeah, thanks for the opportunity. Uh I just wanted to know this solar project uh we have uh acquired. So uh have we uh 29:27 29 minutes, 27 seconds done the financial closure and how long it will take to complete this project and are we bringing some equity partner as well for this project? 29:37 29 minutes, 37 seconds Uh first of all we have secured two solar assets. 29:43 29 minutes, 43 seconds One of the asset is a 40 megawatt solar asset in Odisa Bulangi area. It is an 29:50 29 minutes, 50 seconds asset of SL infra wherein PTC was lender. 29:56 29 minutes, 56 seconds So PT has gone for the substitution and we have purchased this in reverse auction from PTC. 30:04 30 minutes, 4 seconds The agreements are underway right now. 30:07 30 minutes, 7 seconds Uh it is expected to be executed within this uh month. 30:13 30 minutes, 13 seconds The term loan financial closure is also underway and we expect that the by the time this uh agreement is complete. So 30:23 30 minutes, 23 seconds the term loan sanction will also be there from the bank. So another one month's time or so we can expect 30:30 30 minutes, 30 seconds disclosure and then we can move on with the completion of project. 30:35 30 minutes, 35 seconds 24 megawatt is already installed for which PCOD is already there on the set project and there is a revenue 30:43 30 minutes, 43 seconds generation in terms of the power which is getting generated from the project. 30:50 30 minutes, 50 seconds The second one uh it is a 29 megawatt solar power project in Maharashtra. 30:57 30 minutes, 57 seconds So this particular project is from MSADCL in which there is an SFA state financial assistance of 3.2 K per megawatt. 31:08 31 minutes, 8 seconds Uh we are just on the verge of finalizing and the process is ongoing for uh tying up the term lod from the 31:15 31 minutes, 15 seconds bank. So we do expect that another 1 month to 1 and a/2 month time all this will be in place and we'll be moving forward for the execution of the project just after the monsson is out. 31:28 31 minutes, 28 seconds Okay. So the EP uh what will be the EPC value uh remaining value for both the project and have we included these order in our order book? 31:41 31 minutes, 41 seconds uh these orders are directly pertaining to our subsidiary EIA renewables. So these orders are not basically part of 31:50 31 minutes, 50 seconds envirro directly. So that 1178 does not include these projects. 31:58 31 minutes, 58 seconds Okay. And we are not going to execute on our on our we will hire some third party I mean because we are in water sector 32:05 32 minutes, 5 seconds and so or how how we are going to execute this project. 32:11 32 minutes, 11 seconds Uh we are building up our capacities basically uh we have found a subsidy in the name of EIE renewables. So these two 32:21 32 minutes, 21 seconds projects are subsidies of EIE renewables itself. So basically EIA renewable will act as the parent company for these 32:29 32 minutes, 29 seconds projects. We are building up the execution capacities for executing renewable projects in that particular company. So EE renewables will take up the EPC of these. 32:40 32 minutes, 40 seconds Okay. And we also have this annuality revenue coming in this quarter about 6 and a half cr. 32:49 32 minutes, 49 seconds What is this annual revenue? 32:53 32 minutes, 53 seconds Basically we have one of the project at Beri uh for which the cood was achieved last year. So the annuities it is almost one 33:03 33 minutes, 3 seconds year now. So the annuities are coming every quarter. So it is that portion of the annuity which is coming on a quarterly basis. 33:10 33 minutes, 10 seconds Okay. And how long it will come uh this annuity income? 33:16 33 minutes, 16 seconds It will continue to come for another 15 years. 33:20 33 minutes, 20 seconds Okay. Okay. And lastly on ONM order which is about 950 cr. So I mean most of 33:27 33 minutes, 27 seconds the project you must have 10 10 years or 15 years kind of O andM. So how do you see O&M revenue going uh ahead in terms of overall like last year you did 30 cr. 33:38 33 minutes, 38 seconds So is it going to go up let's say 50 100 cr in next two three years. 33:44 33 minutes, 44 seconds Yeah definitely uh these order this ON&M order books so 33:52 33 minutes, 52 seconds for any project it is ranging between 5 to 15 years. So at an average we can take it to be somewhere around 10 years. 33:59 33 minutes, 59 seconds So the onm revenue is going to shoot up with some of the projects which we are under the execution phase right now 34:06 34 minutes, 6 seconds which will uh uh go into commissioning and once the commissioning is done so it will go into operation and maintenance 34:15 34 minutes, 15 seconds phase. So we foresee that from FY27 the on revenue should increase to somewhere around 70 75. 34:24 34 minutes, 24 seconds Okay. And what is the beta margin you are uh getting in this? I mean it will be much higher compared to our existing margin right? 34:34 34 minutes, 34 seconds Yeah margins are in the range of 30 to 35%. Okay. 34:41 34 minutes, 41 seconds Okay. That is all for my side. Thank you. Thank you. 34:45 34 minutes, 45 seconds Thank you. Participants requested to restrict your questions to two. If you have any follow-up questions, we request 34:53 34 minutes, 53 seconds you to rejoin the queue. The next question is from the line of Mr. Ashish from Invest QPMS. Please go ahead sir. 35:03 35 minutes, 3 seconds Yes. Uh thank you for this. So I'm attending your call for the first time. 35:07 35 minutes, 7 seconds Just wanted to check I mean uh our return ratios uh and our margin both are uh excellent given the kind of business 35:14 35 minutes, 14 seconds that we are into. What is the kind of niche uh that we operate in? because in project business typically we haven't 35:21 35 minutes, 21 seconds seen such kind of u uh numbers uh on the margins and the returns basically. So could you explain I mean how how does 35:29 35 minutes, 29 seconds this uh the I mean is there less competition or we do something which is different where we make such margins 35:38 35 minutes, 38 seconds basically the it depends the way any of the project is carried forward. So 35:45 35 minutes, 45 seconds basically uh we are doing entire project inhouse. 35:51 35 minutes, 51 seconds We have our own execution teams inhouse along with our in-house design teams wherein we find our products in 36:00 36 minutes providing the most viable solutions as well as we are having the in-house 36:06 36 minutes, 6 seconds capabilities which prevent any subleting of our margins. 36:12 36 minutes, 12 seconds uh strenzles our capacity to execute the projects well ahead of time and keeping the quality of execution in control. So 36:22 36 minutes, 22 seconds the these all combined are uh uh making us to earn uh the margins of what we are attaining right now. 36:35 36 minutes, 35 seconds Okay. And so if you could give a broader picture of how u the ordering activity is likely to be I mean what's the feeler 36:44 36 minutes, 44 seconds that you are giving getting because uh I think you have been I mean I missed the initial commentary but I think you've been riding for a very high growth uh in 36:52 36 minutes, 52 seconds terms of u revenue growth and that is a function of good ordering that that would be happening from uh that you're 37:00 37 minutes expecting basically. So how how are you looking at uh the overall broader picture for the next three four years in terms of uh ordering activity under the various schemes of the government? 37:13 37 minutes, 13 seconds If you talk about one of the key schemes of the government uh which is Amrut 37:20 37 minutes, 20 seconds mission. So the total budgetary outlay from road to mission is approximately 3 37:27 37 minutes, 27 seconds lakh cr out of which around uh 30,000 cr has been spent till FY 25. So balance 37:34 37 minutes, 34 seconds left is around 2.7 lakh cr and the estimated timeline right now is 2029. 37:42 37 minutes, 42 seconds So if you just look into this one scheme itself, so it leaves a lot of room for 37:49 37 minutes, 49 seconds everybody and a lot of work is available for all the players in this particular segment to work on. 37:57 37 minutes, 57 seconds So our revenue guidance of 35 to 40% uh that shows a clear visibility at 38:05 38 minutes, 5 seconds least for next four to five years on a continuous basis since the number of projects are uh 38:13 38 minutes, 13 seconds humongous and uh we are entering into reuse segments advanced treatment technologies. So we do expect that the 38:21 38 minutes, 21 seconds margin profile that we have uh continued till now so we can continue with the same margin profile and we can have that 38:30 38 minutes, 30 seconds revenue visibility of 35 to 40% similar type of margins which we are having right now and with good cash flows. 38:40 38 minutes, 40 seconds Uh lastly sir are the is the receivable cycle which is uh pretty good uh is it likely to remain the same? you don't see 38:48 38 minutes, 48 seconds any challenges regarding the uh kind of uh payment terms that you get right now from uh your customers ID the state 38:56 38 minutes, 56 seconds basically there is no there is no uh doubt that this will be maintained receivers 39:04 39 minutes, 4 seconds even in the challenging year like FY25 we have been able to maintain our cash 39:11 39 minutes, 11 seconds flows brilliantly and we had been OCF pretext positive So even if it's in a 39:18 39 minutes, 18 seconds task year wherein there was some issues with the release of funds in GGM. So 39:25 39 minutes, 25 seconds that says that we are uh on a right path and our uh cash flow that will remain 39:32 39 minutes, 32 seconds and will continue to be prudent enough and the government central government or state government they are releasing 39:39 39 minutes, 39 seconds their part of the funds. The funds are basically uh paid uh some loans are being arranged for the project. So these 39:47 39 minutes, 47 seconds are all depositive. These are not moving through budgetary allocations. So that way the funds are clearly available and 39:54 39 minutes, 54 seconds the projects have to move uh and to be completed on time. Okay. Okay. Thank you so much sir. 40:03 40 minutes, 3 seconds Thank you. 40:07 40 minutes, 7 seconds The next question is from the line of Mr. Manish Gupta from Equinox Investment Advisors. Please go ahead. 40:16 40 minutes, 16 seconds Uh sir what would be the current debt as on the 30th of June? 40:22 40 minutes, 22 seconds The current debt is somewhere in the range of point that this is what it is back to equity and if I say total debt 40:30 40 minutes, 30 seconds is 222 crores 222 so as on as of uh the 31st March 2025 it 40:39 40 minutes, 39 seconds was 234 crores. So it has gone slightly down. 40:43 40 minutes, 43 seconds Perfect. And to a previous participants query you were mentioning about hand projects uh aspiring to do hand 40:50 40 minutes, 50 seconds projects. So in this regard sir what is the internal guideline of the company regarding the IR expectations from uh 40:58 40 minutes, 58 seconds hand project and how do you see in coming years project contributing what percentage of the total uh revenue mix 41:07 41 minutes, 7 seconds uh uh if you could share something on that 41:13 41 minutes, 13 seconds since he projects involve the financial closers and a part of funds that is to be deployed by the company as a sponsor. 41:22 41 minutes, 22 seconds So we always want to have a right mix between EPC and M projects. So we always 41:29 41 minutes, 29 seconds try to maintain that at a level of 75% to 25% for EPC to M. So our basic 41:38 41 minutes, 38 seconds thought process is that our debt to equity ratio that should remain comfortable right now it is at 02 maybe 41:46 41 minutes, 46 seconds if we add on some ham projects so it may get some means it can get somewhat increased but not to a level that we 41:55 41 minutes, 55 seconds will look forward to not crossing it one more than one at any point of time or we will take a right decision if it happens 42:03 42 minutes, 3 seconds so in future. Oh, good. And finally, sir, any uh sorry to interrupt. I'm 42:10 42 minutes, 10 seconds sorry to interrupt. Could you please rejoin the queue? We do have participants. Sure. Sure. Sure. Thank you so much. 42:18 42 minutes, 18 seconds The next question is from the line of Mr. Rohan from El Capital. Please go ahead. 42:25 42 minutes, 25 seconds Yeah, good afternoon and thanks for the opportunity. Sir I just wanted to know uh we have acquired one asset uh under 42:33 42 minutes, 33 seconds substitution from PTC. So what is the technology in this uh uh asset uh being 42:40 42 minutes, 40 seconds used because this must be older projects and is the generation happening. Are we doing IP here or only EPC? If you can 42:48 42 minutes, 48 seconds throw some light on these both the solar projects. 42:53 42 minutes, 53 seconds Uh basically these are solar power projects. These are ITP projects and uh first of all the Odrisa project it is a 43:02 43 minutes, 2 seconds 40 megawatt solar power project in which 24 megawatt is already installed. We have to install balance uh uh solar 43:10 43 minutes, 10 seconds power plant of 16 megawatt the generation is already happening and the revenues are are already there. So there 43:18 43 minutes, 18 seconds is a threshold level of minimum units that we have to generate and then definitely we can go to a peak level as 43:26 43 minutes, 26 seconds well. 40 million units is what is getting generated per year right now. We have to reach a threshold of 58 43:33 43 minutes, 33 seconds immediately and then we have to move up to a level of uh 75 mu. This project is 43:40 43 minutes, 40 seconds uh through safety. So we are getting our revenues from Siki and the power purchase agreement is signed at rupees 4.1. 43:51 43 minutes, 51 seconds This is project number one. In project number two, this project is basically from MSE DCL. So in this it is a state 44:00 44 minutes financial assistance of 3.2 cr per megawatt uh after the execution of the project. 44:07 44 minutes, 7 seconds So it is more of an ETC where in almost funds are getting released on the execution of the project. Then for 25 44:16 44 minutes, 16 seconds years the power is being sold at a rate of.88 rupees per unit 25. 44:24 44 minutes, 24 seconds So you mentioned about 3.2 crores per megawatt of an state uh financial assistance. 44:30 44 minutes, 30 seconds Then uh that should suffice the entire project uh uh fund funding requirement. 44:37 44 minutes, 37 seconds Then is there a need of separate town loans for this or to raise separate debt and if basically it approves risk you'll 44:45 44 minutes, 45 seconds be repaying it to the state government how how it is how that how is that going to work basically there can be two ways of 44:54 44 minutes, 54 seconds looking into the project one is if there EPC we don't require any funds and then 45:02 45 minutes, 2 seconds the generation or the IRR can happen only during the on phase The second part can be yes we can go ahead with some 45:10 45 minutes, 10 seconds project silence wherein we do have some margins during the execution of the project wherein we look forward to an 45:17 45 minutes, 17 seconds AIA margin maintenance of that level and then an irr 45:25 45 minutes, 25 seconds is on. So I think the second part is prudent enough and that is why we are entering into a small uh term loan or project finance from the bankers. 45:38 45 minutes, 38 seconds Okay. But then the assistance which you are getting from the state how in what form it is being given it's 45:45 45 minutes, 45 seconds a date or is state coming as an equity partner how it is? 45:51 45 minutes, 51 seconds No, no, no. It is directly mean just like an execution a milestone is getting achieved and that fund is going to be released. 46:01 46 minutes, 1 second Okay. 46:03 46 minutes, 3 seconds Okay. to the project ultimately the project will be uh kept just like an asset and it will be parked in one of 46:11 46 minutes, 11 seconds the companies where this asset will be parked and then definitely that IR so it will move just like an IPD but there is 46:20 46 minutes, 20 seconds that financial modeling was done like that the state is given 3.2 to during the execution and then there is an 46:27 46 minutes, 27 seconds operation maintenance of fined date. So that financial modeling was required to be done according to that. That's all. 46:35 46 minutes, 35 seconds Okay. Thank you. Thank you. 46:39 46 minutes, 39 seconds Participants you are requested to restrict two questions per participant. 46:43 46 minutes, 43 seconds If you have any follow-up questions, we request you to rejoin the queue. The next question is from the line of Mr. Swami Natan, an individual investor. 46:52 46 minutes, 52 seconds Please go ahead. Uh very good afternoon sir. 46:57 46 minutes, 57 seconds Good afternoon. Hello sir. Uh uh sir my question is you know uh I have as investor we are very happy with your 47:06 47 minutes, 6 seconds quarter performance in terms of revenue as well as uh the uh EITA margin but you 47:13 47 minutes, 13 seconds know as an investor I somehow feel that earning per share has little bit dropped down uh compared to quart uh quarter one 47:22 47 minutes, 22 seconds of financial year 25 sir. So can you little bit explain on that part sir? 47:30 47 minutes, 30 seconds Mr. Swami Natan if I'm not wrong the earning per share has not dropped it has marginally increased 47:39 47 minutes, 39 seconds and we are here in this segment from a long time and we'll be there for a long long time and with a very good growth 47:48 47 minutes, 48 seconds rate in the sector. So I will request that you continue we the performance of 47:56 47 minutes, 56 seconds company will be good and definitely that will get dried in form of the good pricing and valuation of the company in future. 48:07 48 minutes, 7 seconds Uh sure sir and sir final one more question sir it's not a question and uh you know it's it's a worrisome point 48:14 48 minutes, 14 seconds from my side. uh on the one hand the company is per uh doing uh the performance operational performance 48:21 48 minutes, 21 seconds excellent uh in terms of you know accusition and in terms of the uh project that we are taking and including EZLD but on the other side some 48:30 48 minutes, 30 seconds administrative issues are happening like fraud and the litigation against recent litigation against Karnaga drainage that 48:39 48 minutes, 39 seconds makes you know little bit worrisome as an investor so uh how we are going to handle such because there are we are 48:47 48 minutes, 47 seconds going to have more and more opportunity in future in terms of our you know order book growth. So how we are going to 48:55 48 minutes, 55 seconds handle this this part effectively in future sir let me explain these two parts separately. 49:06 49 minutes, 6 seconds First of all, arbitrations in any of the contract it may happen. It happens 49:14 49 minutes, 14 seconds because of the understanding which both we as a contractor and then the government department 49:23 49 minutes, 23 seconds wherein they have their own thought process and we do have our own thought processes. So if there is any point 49:30 49 minutes, 30 seconds where there is a disconnect then we have to go for a process which is clearly 49:37 49 minutes, 37 seconds outlined in the agreement itself. We are continuing to execute the project for 49:44 49 minutes, 44 seconds the same state government on a continuous basis. These arbitrations means it is a type of dispute which 49:53 49 minutes, 53 seconds cannot directly handle. So these are basically points wherein one has to enter into it and 50:01 50 minutes, 1 second if we are right so we'll get our part of the juice or if they are right so that will get subsided. So basically 50:10 50 minutes, 10 seconds entering into a arbitration doesn't say that we are in a red zone at all. This is one what we can understand. 50:20 50 minutes, 20 seconds The second part is that uh the fraud which has happened in the company the company existing for the past 33 years. 50:30 50 minutes, 30 seconds This is the single incident I can say which has happened and for this cyber 50:37 50 minutes, 37 seconds fraud not to happen or any such type of event which should not happen in the company at all. We are taking utmost 50:46 50 minutes, 46 seconds care in future so that the systems are well in place and any such type of threat if ever that can be avoided. 51:00 51 minutes Thank you Manish sir. All the best for the coming quarter sir. Thank you. 51:05 51 minutes, 5 seconds Thank you. The next question is from the line of Mr. Nikil an individual investor. Please go ahead. 51:15 51 minutes, 15 seconds Yeah. Hi. Uh am I audible? Yes sir. 51:18 51 minutes, 18 seconds Yeah. Yeah. So sorry if I understand uh correctly the one issue was with respect 51:24 51 minutes, 24 seconds to uh government updating the system because in the system probably uh there was the completion to be done by 24 and 51:33 51 minutes, 33 seconds it got extended for some reason and that is why there is a delay in funds and it is not due to some fund issue with the 51:40 51 minutes, 40 seconds central government because I just want to Understanding from your end is it more structural slowdown or it will get 51:49 51 minutes, 49 seconds uh improved in the coming or you have already seen signs of bottoming out uh in release of the funds and the things will be much better from here on. 52:01 52 minutes, 1 second Basically what I know from my side and as my understanding is there is no issue 52:09 52 minutes, 9 seconds at least with respect to the availability of funds at the center. The same would have in the other schemes 52:16 52 minutes, 16 seconds would not have moved. We are executing the project under Nami Gang and Amutu as 52:22 52 minutes, 22 seconds well. So the there the position is eased out and the projects are moving smoothly and funds are also being released on 52:31 52 minutes, 31 seconds time. As far as this JGM is concerned basically we are not inclined to enter further for these project. These are 52:40 52 minutes, 40 seconds more of the pipeline streams. We are more towards implementation of the plants and entering for the 52:48 52 minutes, 48 seconds advanced waste water and waste water treatment technologies. So this is what we can say at one point of time we were 52:56 52 minutes, 56 seconds we had these projects in JJ we are executing these projects now we are more aligned towards that ambut or 53:04 53 minutes, 4 seconds multilateral agencies nami projects and we are moving more towards the reuse of z schemes and with advanced wage for the 53:14 53 minutes, 14 seconds treatment technologies. So what we can say is yes the worst is over the JGM wherein the funds could not get aligned 53:22 53 minutes, 22 seconds on time. Right now the position is quite eased out. We are working in the state of empty and we are not facing at least 53:30 53 minutes, 30 seconds any challenges. Uh from the month of March the payment cycle has eased out to considerable extent. 53:42 53 minutes, 42 seconds Got it. Got it. Got it. Okay. Because why I was asking is center is uh in your other projects also right because in all 53:50 53 minutes, 50 seconds the projects it is central driven. So even though we are not in the dirty on much but it should not impact the ratios 53:57 53 minutes, 57 seconds with respect to our other projects which I understand is not the case like you explained. 54:04 54 minutes, 4 seconds Basically what happened in past was that if any of the project is a centrally funded or centally sponsored scheme so 54:13 54 minutes, 13 seconds that gave the confidence that the project will move smoothly and the liquidity can be ensured. So GGM last 54:21 54 minutes, 21 seconds year what has happened is a one of time in last 10 years. So we can just say that the worst is over and we don't 54:29 54 minutes, 29 seconds foresee any such type of incidents happening in future. 54:34 54 minutes, 34 seconds Got it. Got it. Great sir. All the best and thank you for giving me the opportunity and thank you. 54:43 54 minutes, 43 seconds The next question is from the line of Mr. Vinit Rajawat, an individual investor. Please go ahead sir. 54:52 54 minutes, 52 seconds Hello. Good afternoon sir. 54:54 54 minutes, 54 seconds Good afternoon sir. I wanted to know that uh when you have told that you are expecting a 35 to 55:01 55 minutes, 1 second 40% kagger with the uh diversification of the business uh like into solar and 55:08 55 minutes, 8 seconds ham projects which you're expecting your EPS will also be like in the uh growth 55:15 55 minutes, 15 seconds range of 30 to 40%. Sir uh first of all let me clarify that the 55:24 55 minutes, 24 seconds growth what we are expecting uh which is this 35 to 40% tagger growth 55:32 55 minutes, 32 seconds it is basically we are projecting from the water and waste water treatment sector alone. So okay the growth from 55:40 55 minutes, 40 seconds the renewable sector that will further get on which will get added to the growth which we analesize from the water and waste water treatment sector. 55:50 55 minutes, 50 seconds Okay sir. Thank you and best of luck for the coming quarters. Thank you. 55:56 55 minutes, 56 seconds Thank you ladies and gentlemen. That was the last question from this session. I would now like to hand the conference over to Sanjay sir for closing comments. 56:09 56 minutes, 9 seconds Uh I thank the entire team of environmental engineers limited for their consing effort, hard work and dedication 56:17 56 minutes, 17 seconds which drives the company forward to various market conditions. Also I appreciate all of you for participating 56:25 56 minutes, 25 seconds in our conference call. Please do get in touch with our investor relationship team for any further question. Thank you everyone. 56:34 56 minutes, 34 seconds Thank you sir. On behalf of Envirro Infragineers Limited, that concludes this conference.