Globe Civil Projects Ltd — Q3 FY26

Globe Civil Projects Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zbP2VQJoBYc Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to Globe Civil Projects Limited Q3 and 9 months FI26 results conference 0:07 7 seconds call hosted by Equi Bridge X Advisor Private Limited. As a reminder, all participant lines will be in the listenon mode and there will be an 0:16 16 seconds opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:23 23 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:30 30 seconds hand the conference over to Mr. Gautam Nagar from EQ bridge X advisor. Thank you and over to you. 0:37 37 seconds Thank you. A very good evening to everyone. Welcome to the Q3 and 9M FY26 earning call of Global CD Projects India 0:46 46 seconds Limited. From the management team we have with us today Mr. Vipul Kurana, managing director and Mr. Raav Agaraval, 0:55 55 seconds Chief Fun Officer. We will have a opening remarks from the management team post which we will open the floor for 1:02 1 minute, 2 seconds Q&A. With that, I would like to hand over the call to management for the opening remarks. 1:11 1 minute, 11 seconds Uh hi, good evening. This is Ripul Kurana, managing director, Globe Civil Projects Limited. Thank you for joining 1:18 1 minute, 18 seconds us today for the earning call of Globe Civil Projects Limited. We truly appreciate the time and interest of our investor, analyst and all the 1:26 1 minute, 26 seconds stakeholders. The period reflects the company's continued focus on disciplined execution, stable operation and a 1:34 1 minute, 34 seconds measured approach to growth across the EPC project portfolio. Globe Civil Projects Limited is an EPC focused 1:41 1 minute, 41 seconds infrastructure company engaged in the execution of civil and infrastructure project across India. The company 1:48 1 minute, 48 seconds undertakes a wide range of projects including construction of infrastructure facilities, buildings and aide civil works with a strong emphasis on qual 1:58 1 minute, 58 seconds quality execution, cost efficiency and timely delivery. Over the years, the company has built established project 2:05 2 minutes, 5 seconds execution capability supported by experience management, prudent project selection and disciplined cost management enabling consistent 2:14 2 minutes, 14 seconds performance across cycles. During the third quarter of financial year 2026, the company delivered a stable financial 2:23 2 minutes, 23 seconds performance supported by a steady progress across ongoing projects and effective cost control. Now I hand over 2:31 2 minutes, 31 seconds to Ragharwal CFO to continue with the financials. 2:37 2 minutes, 37 seconds Hello everyone, I'm Raga Agraal, chief financial officer of the company. Coming to the financials of the company for Q3 2:45 2 minutes, 45 seconds and 9 months ending December 2025 on a standalone basis the total income 2:52 2 minutes, 52 seconds for the quarter stood at 937.57 million while profit before tax was 79.96 million. 3:02 3 minutes, 2 seconds Net profit for the quarter was 65.28 28 million translating into a net profit 3:10 3 minutes, 10 seconds margin of approximately 6.96% with earnings per share of rupees 1.10 3:18 3 minutes, 18 seconds for the 9 months ended financial year 26. Standalone total income stood at 3:25 3 minutes, 25 seconds 2,481.37 million. 3:29 3 minutes, 29 seconds Profit before tax was 233.45 45 million and a net profit reached 175.67 3:38 3 minutes, 38 seconds million with a EPS of rupees 3.23. 3:44 3 minutes, 44 seconds Coming on to the consolidation consolidated basis the company reported total income of 1,020.91 3:51 3 minutes, 51 seconds million and for quarter 3 financial year 26 and 2645.75 3:59 3 minutes, 59 seconds for 9 months period while maintaining stable profitability levels. These results reflect the 4:06 4 minutes, 6 seconds company's disciplined execution approach, focus on cost efficiency and steady progress across its EPC order book. 4:17 4 minutes, 17 seconds The infrastructure sector in India continues to benefit from government-led capital expenditure, increased focus on 4:25 4 minutes, 25 seconds roads, urban infrastructure and public works providing a supportive demand environment for EPC companies. 4:35 4 minutes, 35 seconds Within this environment, Road Civil Projects Limited remains focused on strengthening execution capabilities, 4:43 4 minutes, 43 seconds improving working capital efficiency and selectively pursuing opportunities aligned with its risk framework. 4:52 4 minutes, 52 seconds Thank you for joining us today and for your interest in Pro Civil Project Limited. 4:59 4 minutes, 59 seconds We will now open the floor for questions. 5:02 5 minutes, 2 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 5:10 5 minutes, 10 seconds and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 5:18 5 minutes, 18 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 5:28 5 minutes, 28 seconds We'll take our first question from the line of Anik Madwani from Step Trade Capital. Please go ahead. 5:36 5 minutes, 36 seconds Yeah. Hi, I'm a uh can you use your handset mode please? Your audio is not very clear. Hello, I'm audible now. 5:46 5 minutes, 46 seconds Yes, please go ahead. 5:48 5 minutes, 48 seconds Yeah. So my uh first question was the um what's your uh current outstanding 5:55 5 minutes, 55 seconds order book as of uh 31st J if you can 6:02 6 minutes, 2 seconds uh current order book is around 850 crores. Yeah. And we are we have paid around 850. 6:10 6 minutes, 10 seconds Three we have three four four projects we have already bidded of roughly around 500 crores and in next 2 3 months we have pipeline of another bidding of 500 crores. 6:23 6 minutes, 23 seconds Okay. And uh what uh what strike rate should we expect from the uh bidding uh 6:32 6 minutes, 32 seconds strike rate in our in our business strike rate is not necessarily depends on the project to budget. Sometimes we bid three projects and we get all three 6:41 6 minutes, 41 seconds and sometimes we bid five projects we don't get. We our focus is on getting the projects good projects in good prices rather than maintaining a side 6:48 6 minutes, 48 seconds rate. So but yeah we are selective in bidding. We don't beat each and every project. We only bid the project where our chances are very high of getting it. 6:58 6 minutes, 58 seconds But we are not that desperate and we don't go under quote and get the project. So yeah to maintain the head healthy auto book and healthy bottom 7:06 7 minutes, 6 seconds line and top line we bid selective projects with good margins. 7:15 7 minutes, 15 seconds So I just want to understand uh despite having this uh uh large order book 7:22 7 minutes, 22 seconds you are still facing challenges to know execute these order. So what's your execution timeline? Generally if you uh 7:31 7 minutes, 31 seconds receive the order on first chance so what's the execution timeline? The execution timeline depends on project to 7:38 7 minutes, 38 seconds project. Normal execution timeline is from 18 months to 30 months. 7:45 7 minutes, 45 seconds But with with lot of projects in Delhi, NCR and you know in a project of say 18 months 7:53 7 minutes, 53 seconds 6 to 8 months are gone because of pollution the work stops in Delhi NCR. 7:59 7 minutes, 59 seconds So again that 18 months spillover is there at for at least 26 months or 28 months. 8:07 8 minutes, 7 seconds So this is a drawback in Delhi. But otherwise other projects are uh going on time and uh we haven't in single project 8:15 8 minutes, 15 seconds we haven't got any penalty or any compensation from the client. So it's going all within the timeline with this. 8:27 8 minutes, 27 seconds So as per your previous guidance uh you will be closing around 200 CR in this quarter right? 8:37 8 minutes, 37 seconds Uh come again please. 8:41 8 minutes, 41 seconds I'm saying as per your previous guidance you will be closing around 100 uh 200 ch 8:47 8 minutes, 47 seconds this quarter. So that will take you to the uh annual revenue guidance of 20 to 25% growth as you mentioned previously. 8:58 8 minutes, 58 seconds Yeah, previously we had mentioned we have uh we we had mentioned about 20 to 25% of uh growth. 9:06 9 minutes, 6 seconds It may come down a bit. We are not sure. 9:09 9 minutes, 9 seconds Depends on this quarter. But yeah, last year our uh standalone revenue was 9:15 9 minutes, 15 seconds around 325 crores and we we were like to maintain 20 to 25% growth every year on 9:24 9 minutes, 24 seconds year but this year due to some pollution issues and major projects in Delhi we 9:29 9 minutes, 29 seconds are still uh expecting a 15% growth 15% 9:37 9 minutes, 37 seconds yeah 15 to 20% here again we are time that we will be able to maintain as compared to last year quarter three 9:44 9 minutes, 44 seconds numbers if you see last year standalone was around 225 crores and this year it is 246 crores till 9:54 9 minutes, 54 seconds quarter till till December I'm saying comparatively from 9 months to 9 months 10:03 10 minutes, 3 seconds there is a growth of 5 to 10% as of now but fourth quarter is always better in our industry 10:10 10 minutes, 10 seconds So we are still hoping that now there is no such pollution thing in Delhi and all 10:17 10 minutes, 17 seconds our projects are now running only uh there is some delay in Hana cricket association work only that we 10:25 10 minutes, 25 seconds are expecting that this month we will get all the approvals done from there if that project would have started 3 months 10:33 10 minutes, 33 seconds back so we have easily achieved 20 to 25% also so it is still on the track. 10:41 10 minutes, 41 seconds There's no such delay and uh uh could you just uh uh give me 10:52 10 minutes, 52 seconds the number of projects and the value for the same uh for which the uh it got delayed in Delhi due to pollution. 11:04 11 minutes, 4 seconds No, all our major projects are in NCR. 11:07 11 minutes, 7 seconds See the one in KG mark of 200 crores is in Delhi. Two unit tech projects of around 200 crores again combined are in 11:15 11 minutes, 15 seconds Delhi. And then session which we have yet to start but again that's in NCR public school and two schools we are 11:23 11 minutes, 23 seconds doing Delhi public school in NOA and Fabadi they are also in Delhi Nar and NIT Narella is also in Delhi. So 11:32 11 minutes, 32 seconds major all our project except uh Bangalore one project we are doing it which isinda and one batinda batinda we have received this year only 11:40 11 minutes, 40 seconds and we have already achieved around 30 to 35 crores uh 35 crores we have already built in this out of 180 crores 11:48 11 minutes, 48 seconds we have received this order in July August only and we have already done 35 crores in this project. 11:57 11 minutes, 57 seconds I I just want to understand how pollution actually affected your business. 12:02 12 minutes, 2 seconds The pollution in in pollution the they ban the construction. Construction is stopped by government orders. 12:12 12 minutes, 12 seconds Construction is stopped by government orders. Yeah. 12:18 12 minutes, 18 seconds As soon as as soon as grab three right now in Delhi grab two. So as soon as they grab three when the pollution level goes up to 300 they stop the 12:25 12 minutes, 25 seconds construction and when the then they get graph four then this completely banned. 12:32 12 minutes, 32 seconds Okay. And what what's the current status in current current is graph two going on. 12:37 12 minutes, 37 seconds It's good. Now two 12:49 12 minutes, 49 seconds thank you ladies and gentlemen to ask a question please press star N1 on your phone. Next question is from the line of Vijender Singh from Fluent Equity. 12:59 12 minutes, 59 seconds Please go ahead. Hi, am I audible? Yes. Yes. 13:05 13 minutes, 5 seconds Yeah. I just want to confirm the order book uh as of December the executed one. Yeah. Around 850. 13:14 13 minutes, 14 seconds 850. Yeah. 13:17 13 minutes, 17 seconds Right. So as you mentioned that you know uh there has been some delay in the Mia project which has caused uh the overall 13:25 13 minutes, 25 seconds growth that you know production. So I just want to know what uh kind of projections you have for F27. So 13:35 13 minutes, 35 seconds what kind of projection you have for uh 27 FR 27. So you know I think uh similar projection which we have already 13:43 13 minutes, 43 seconds given around the guidance factor of 20 to 25% growth is what we are looking healthy to achieve. We might have missed 13:52 13 minutes, 52 seconds this first but yeah from next this year to next year also we are targeting 20 25% growth 13:59 13 minutes, 59 seconds we have already bu number of projects and we will achieve those projects in how what is the pipeline for uh the 14:08 14 minutes, 8 seconds projects that you have for pipeline we have already bit around 500 crores project is under bidding so there are we we hope to open in 1 month or two 14:16 14 minutes, 16 seconds there's a four projects of totaling of 500 crores and is in 2 months we have to we are in the process of bidding another 500 cr project. 14:26 14 minutes, 26 seconds So but there you guys have not achieved uh any major project you know projects in the past 4 months. So do you feel there's been a slowdown as such in 14:34 14 minutes, 34 seconds No no no last last last year we had uh totally procured around 500 crores of uh projects 14:42 14 minutes, 42 seconds last year quarter two in quarter two we have got so yeah we have got 500 cr projects already so and and similar target we have more than 14:51 14 minutes, 51 seconds that to get in this year also. 14:56 14 minutes, 56 seconds Okay. So not necessarily every every quarter we get but yeah the target of the year is achieved. 15:05 15 minutes, 5 seconds So overall as you mentioned that you know uh there has been a slowdown in the NC projects but has this also been the case for all of your uh peers that are 15:12 15 minutes, 12 seconds in NCR. Yeah, yeah, yeah, yeah. If if you know last this year this this year particularly we had maximum projects in 15:20 15 minutes, 20 seconds Delhi and NCR otherwise last year or last year we might have 50% outside 70% outside in Delhi so our preference is to 15:30 15 minutes, 30 seconds get in NCR so that it's better control better cost control and better profitability in NCR project rather than going out but yeah we don't going out is 15:38 15 minutes, 38 seconds not a concern if you get good prices good rates we go out also but this year particularly we have 9 78% of the Rukov in Delhi and Saraka. 15:47 15 minutes, 47 seconds Right now we have bidded one for Rayur, one for Vishakapatnam, two of Delhi again we are bid. So thank you. 16:01 16 minutes, 1 second Thank you. 16:03 16 minutes, 3 seconds Before we take the next question would like to remind participants to ask a question please press star one on your phone. 16:10 16 minutes, 10 seconds Next question is from the line of Sedat Shukla and individual investor. Please go ahead. 16:18 16 minutes, 18 seconds Yeah. Good evening everyone. Uh I have few questions to ask. Uh how do you see 16:25 16 minutes, 25 seconds government infrastructure spending uh opportunity of I'm sorry a sounding buffer SA his line 16:33 16 minutes, 33 seconds is disconnected. We'll move on to the next question from the line of Nam Kanani an individual investor. Please go ahead. 16:45 16 minutes, 45 seconds Uh Nam please use your handset mode. Yeah. Good. Good evening ma'am. 16:52 16 minutes, 52 seconds Uh please use your handset. Your voice is echoing. Nam are you on any Bluetooth device? 17:06 17 minutes, 6 seconds Hello. Just use your handset mode please. There's lot of echo on your line. 17:14 17 minutes, 14 seconds Hello. Yes. 17:16 17 minutes, 16 seconds Yes, it is fine now. Please go ahead. Uh good. Uh my first question, how is the 17:23 17 minutes, 23 seconds IPO process utilization progress so far versus state objective? 17:31 17 minutes, 31 seconds Uh come again. 17:33 17 minutes, 33 seconds So how has the IPO process utilization progress so far versus stated objectives? 17:40 17 minutes, 40 seconds Yeah. Uh the proceeds from the IPO as per the object uh we have uh also 17:47 17 minutes, 47 seconds uploaded a monitoring agency report on the portal also. So we uh out of 119 17:54 17 minutes, 54 seconds crores uh around 15 crores is the balance we have in our FDRs and uh major 18:02 18 minutes, 2 seconds object was 75 crores for the working capital which is uh almost utilized. 18:08 18 minutes, 8 seconds there is a balance of around 20 to 25 days. We have the you can check the status of the proceeds of the IPO from 18:16 18 minutes, 16 seconds the monitoring report also. So and capex is remaining uh we have a object of 18:24 18 minutes, 24 seconds around 14 crores for capex of which around 101 cr 10 crores is still available for uh capital expenditure and 18:34 18 minutes, 34 seconds some general profit purpose of around 3 crores is available with us till December 2025. 18:44 18 minutes, 44 seconds Okay. 18:46 18 minutes, 46 seconds Thank you. Uh so my next question is what proportion of funds is your mark for working capital and death projection. 18:57 18 minutes, 57 seconds So uh uh as for the IP proceeds object the there was no nothing for the debt 19:04 19 minutes, 4 seconds reduction and uh around 75 cr out of 119 cr was for working capital and 14 cr out of 119 cr was for capex. 19:17 19 minutes, 17 seconds Okay. Thank you sir. And uh how should investors evaluate return on capital from ICO funded expansion over the next two years? 19:33 19 minutes, 33 seconds So uh from uh we have uh now we are uh doing majorly EPC projects and uh the 19:40 19 minutes, 40 seconds working capital is more required in EPC projects and uh we have started uh we 19:47 19 minutes, 47 seconds are expecting around 20 to 25% growth every year and uh our eligibility is also increasing with completion of uh 19:56 19 minutes, 56 seconds every bigger projects. Earlier we were doing projects in joint ventures also. 20:01 20 minutes, 1 second Now we have ample network. We uh with the IPO proceeds our net worth has 20:08 20 minutes, 8 seconds increased. We are now eligible for more bigger projects and to grow faster. So this is what uh investors and can expect that we can grow 20 to 25%. 20:22 20 minutes, 22 seconds And uh government focuses also on the infrastructure projects. Every day there are number of projects that we can bid. 20:31 20 minutes, 31 seconds It is allowed to choose which project is good. And uh this year we have already received 500 cr projects in our order 20:40 20 minutes, 40 seconds book and another two 300 400 projects we are expecting this year. So for us right now we can wait for 200 300 cr single 20:49 20 minutes, 49 seconds project also. So it is like to get one or two or three good projects in a complete year rather getting uh better 20:59 20 minutes, 59 seconds side grade or something. So it is like getting two three bigger projects and that's all we need. So it is like choose good projects only. 21:09 21 minutes, 9 seconds Okay. Uh and what is the management medium some good guys guidance in terms of profitability? 21:20 21 minutes, 20 seconds Come again. 21:22 21 minutes, 22 seconds What is the management uh medium-term growth guidance in terms of revenue and profitability 21:29 21 minutes, 29 seconds medium growth for revenue and profitabilities? 21:32 21 minutes, 32 seconds You're expecting we can we can easily achieve 20% growth. 21:35 21 minutes, 35 seconds Mhm. uh every year year on year 20%. 21:44 21 minutes, 44 seconds 20% growth every year in the revenue and similarly in the profitability profitability also we get we choose 21:53 21 minutes, 53 seconds projects which which are having good margins also. So there are some circumstances like uh delay in projects 22:01 22 minutes, 1 second due to pollution in Delhi. So that might increase some overheads cost also. 22:09 22 minutes, 9 seconds Okay. And so do you have any plans to diversify into new infrastructure sub segments or a higher margin project? 22:18 22 minutes, 18 seconds We are in a constant lookout for some uh good margin project or better margin project. But uh right now we don't have plan because we are already doing 22:27 22 minutes, 27 seconds railway station, we are already doing the airport, we all doing other buildings. So we're doing already complex nature of projects but yeah we 22:34 22 minutes, 34 seconds on constant look out for some maybe you know board project or something like that we try to study and we try to build also but nothing in particular that we 22:43 22 minutes, 43 seconds are going through right now but again we are in the lookout and we are in process of searching. 22:52 22 minutes, 52 seconds Okay sir okay thank you sir and all the best. 22:57 22 minutes, 57 seconds Thank you. Next question is from the line of Rohan Kamat from LNPR Capital. Please go ahead. 23:06 23 minutes, 6 seconds Rohan. Yeah. Hi. Am I am I audible? Yes. Yes. Yes. Please go ahead. 23:13 23 minutes, 13 seconds Yeah. Thank you for giving me chance. Uh my first question is uh Q3 F20 shows a healthy execution momentum. Could you 23:20 23 minutes, 20 seconds management outline the key drivers behind this quarter performance was H1 F26? 23:30 23 minutes, 30 seconds The key drivers were the the similar projects we bought and which we are are in good position to run. So all our projects are running except one which we 23:39 23 minutes, 39 seconds where the approval is pending uh we could not start otherwise all projects are running smoothly. So that was the 23:46 23 minutes, 46 seconds key driver for u the order book and turnover. Uh generally we choose projects where funds are available. Uh 23:54 23 minutes, 54 seconds the projects are deposit works. So delay there might be reasons for delay like approvals and fund as non availability 24:02 24 minutes, 2 seconds of funds. So generally we choose projects where funds is never an issue but approvals is something which is 24:09 24 minutes, 9 seconds required in every project. So we choose projects which have all approved all funds availability and we are expecting 24:19 24 minutes, 19 seconds that approvals will also come as early as possible. So that the turnover is uh 24:26 24 minutes, 26 seconds more or less similar to the quarter two in quarter three also but uh one of the project if that would have started so it 24:34 24 minutes, 34 seconds would have been a more better position for us also. 24:39 24 minutes, 39 seconds Okay. How has project as it progressed across roads uh irrigation and building sectors during the quarter? Can you can you define this? 24:51 24 minutes, 51 seconds Uh could you please ask again uh how has project education progressed across roads irrigation and building segments during this quarter? 25:01 25 minutes, 1 second No we we are not into irrigation. We don't have any project into irrigation. 25:04 25 minutes, 4 seconds The building sector we have one we are only focusing on building sector right now. We do some flyovers we have done in past but like mostly buildings is what 25:12 25 minutes, 12 seconds we do and the requirement is growth is good and the availability of funds is also there. The project pipeline is also 25:20 25 minutes, 20 seconds good in building sector. Every month we are quoting around two to three four projects. So the sector is good and 25:26 25 minutes, 26 seconds driving right now. What is the current order book as of December 295 and how much revenue visibility does it provide uh in for FI 27 to 2018? 25:39 25 minutes, 39 seconds uh we have around 900 to 850 crores of order book as on December and visibility is similar uh 20 to 25% growth year on 25:48 25 minutes, 48 seconds year basis is what we are targeting so okay so based on the order by segment and geographically and highlight shift 25:57 25 minutes, 57 seconds in the mix mostly north India is a sector and geographically is mostly north India which we are doing it right now that's 26:05 26 minutes, 5 seconds 90% of our order book and options and in and institutional and colleges and these 26:12 26 minutes, 12 seconds are the key portions which we do and exact break up I don't have right now but yeah 70% 26:22 26 minutes, 22 seconds is in in Delhi and NCR hospitals yeah uh what is the targeted inflow for F26 26:29 26 minutes, 29 seconds to and FR 27 and which segment are expected to contribute most 26:36 26 minutes, 36 seconds uh in uh 26 27 Seven our institutional building will be contributing to most of our order book. The transport and the 26:44 26 minutes, 44 seconds railway section is going to reduce because we don't plan to animate more railway station and the old ones are 26:51 26 minutes, 51 seconds about to finish. So yeah sector is going and housing sector is going to contribute maximum. 26:56 26 minutes, 56 seconds We have bigger project uh central university project and uh cricket stadium is there. So we will be contributing more next year. 27:06 27 minutes, 6 seconds uh AITA margin have remained stable included in Q3. What were the key cause they were supporting margin? 27:15 27 minutes, 15 seconds Yeah, AITA margin is uh quite stable and uh there was some overhead cost that has 27:23 27 minutes, 23 seconds incurred in quarter three because of the one of the project that has not started as we were expecting. So more or less AITA margins are similar. 27:35 27 minutes, 35 seconds In quarter 2 AITA margin was around 15.92% and now it is 15.89%. 27:41 27 minutes, 41 seconds VITA is almost similar. 27:45 27 minutes, 45 seconds Okay. My last question uh is this company targeting any specific depth to AIT range over the medium term? 27:55 27 minutes, 55 seconds Come again. 27:57 27 minutes, 57 seconds uh dep equity is the company targeting any specific depth to equity or depict range over the medium term. 28:08 28 minutes, 8 seconds uh in the uh uh we have ample funds as of now we are not targeting any new uh 28:16 28 minutes, 16 seconds borrowings except the borrowings for non-f fund based limits like bank guarantee that is one of the major 28:24 28 minutes, 24 seconds borrowing that we are required in our projects. So for working capital we are not uh targeting any further increase in 28:34 28 minutes, 34 seconds the near term and in future if we see that we have major projects then we can 28:40 28 minutes, 40 seconds go for the more debts otherwise we have ample funds available as of now to execute all these projects. 28:51 28 minutes, 51 seconds Okay thank you I'll come back in the queue. 28:55 28 minutes, 55 seconds Thank you. We take our next question from the line of Shia Punani from Arja Partners. Please go ahead. 29:03 29 minutes, 3 seconds Hi. Yes, please go ahead. 29:07 29 minutes, 7 seconds I just have one question. So, what is capital cycle in days? 29:17 29 minutes, 17 seconds It is around 100 days. Uh quite similar to what we were having in financial year 29:24 29 minutes, 24 seconds 25 also. It is around 105 days only. So okay it is because it is because of the 29:31 29 minutes, 31 seconds EPC projects which is require which take time to Shia. 29:44 29 minutes, 44 seconds Hello. Yes. Does that answer your question? 29:48 29 minutes, 48 seconds No. I want how much time do we receive the payment from the government? 29:56 29 minutes, 56 seconds No payment we receive every month uh from our clients but uh you know when we submit the bill it takes time to check 30:04 30 minutes, 4 seconds and then you go to finance and then approval of the funds. So after sending the bill it takes around 1 or 45 days 30:11 30 minutes, 11 seconds more. So some project like unit text they take longer time and some are shorter time. 30:18 30 minutes, 18 seconds It depends on the project to project but yeah that is how it is. every month. 30:23 30 minutes, 23 seconds Every month we receive the billing is done every month. Okay. Okay. Thank you. 30:31 30 minutes, 31 seconds Thank you. Before we take the next question, would like to remind participants to ask a question, please press RN1 on your phone. Next question 30:40 30 minutes, 40 seconds is from the line of Jes from HDS securities. Please go ahead. 30:45 30 minutes, 45 seconds Yeah. Thank you so much and good afternoon. Thanks for opportunity. Am I audible? Yes. 30:52 30 minutes, 52 seconds Yes, please go ahead. Yes, please go ahead. 30:57 30 minutes, 57 seconds Sir, my first question is that what is the current book to billable ratio and target uh sorry and the target range that the company is comfortable with? 31:09 31 minutes, 9 seconds Current book group to bill ratio is approximately about two and uh we are 31:16 31 minutes, 16 seconds targeting to have it around three like we we are having a order book of uh 31:23 31 minutes, 23 seconds 850 crores as of now and our turnover is around 350 400 crores on yearly basis. 31:31 31 minutes, 31 seconds So it is currently two which is also healthy but we are targeting to keep it to three also because when we get the 31:40 31 minutes, 40 seconds project it takes 3 4 months at least to start a project. 31:46 31 minutes, 46 seconds So this is what we are targeting and we are hoping to achieve soon. 31:51 31 minutes, 51 seconds Okay. Okay. And and what about the target range? 31:55 31 minutes, 55 seconds Target is three. I already see as of now it is plus. Okay. 32:03 32 minutes, 3 seconds What proportion of the order book is six slice? What is the escalation length? 32:10 32 minutes, 10 seconds Uh mostly our projects are with escalation. 32:14 32 minutes, 14 seconds I mean one project uh the cricket station 222 plus GC project is of uh 32:21 32 minutes, 21 seconds fixed cost and that also the steel is uh supplied by the department. So more or less it is covered by the escalation part but yeah mostly projects are with escalation only. 32:33 32 minutes, 33 seconds Okay. 32:35 32 minutes, 35 seconds How much of the order inflow in FY 26 has come from the repeat customers? Repeat customers already. 32:43 32 minutes, 43 seconds Yeah all our orders are from repeat customers. We are working in two three departments like NBCC TCIL CPW 32:51 32 minutes, 51 seconds CPWD. These are the routine department and I mean the main client like colleges and uh IIT or IM or NIT they changes but 33:00 33 minutes the the the one who's executing the projects are the repeat customer only. 33:07 33 minutes, 7 seconds Okay. 33:09 33 minutes, 9 seconds And uh are there any uh large orders finalizations expected in the near future or near term? 33:17 33 minutes, 17 seconds We around 500 cr project we have bided and we are expecting to open that in 1 month. So we are expecting some orders 33:26 33 minutes, 26 seconds out of that but uh again unless their pipeline is open and tender is we have lowest declared lowest we can't confirm 33:34 33 minutes, 34 seconds that but yeah we expecting some of them at least like four projects we have built. So some projects 1 2 3 we 33:42 33 minutes, 42 seconds expecting or at least five maybe you can say one or three 33:49 33 minutes, 49 seconds three I'm saying that yeah three three we can expect okay yeah yeah yeah then sir what about the what is the 33:58 33 minutes, 58 seconds sorry what is the bidding pipeline that is currently under evaluation uh 500 cr is the bidding pipeline which 34:07 34 minutes, 7 seconds is under evaluation under bidding for next And that's great. 34:14 34 minutes, 14 seconds The sports infrastructure actually has grown meaningfully a lot. 34:20 34 minutes, 20 seconds So is this a strategy focus area or Yeah. Yeah. It's a strategy strate strategy focus area because in next 5 to 34:28 34 minutes, 28 seconds seven years there's a lot of sports infrastructure that going to build across the country because of the Commonwealth and or maybe Olympics also 34:34 34 minutes, 34 seconds comes to India. So again our focus is to have a niche area in social in sports infrastructure. So that was the purpose 34:42 34 minutes, 42 seconds and that's why we took a stadium project and we are expecting in this year to get at least one or two more sports projects. 34:51 34 minutes, 51 seconds Two to three more. Yeah. One or two more. One or two more. 34:56 34 minutes, 56 seconds One or two in entire year as an entire year. Yeah. Yeah. Because I mean we Yeah. Yeah. We we for getting three 35:04 35 minutes, 4 seconds you know from two to three we just need three four projects not like 10 projects to book to pill ratio increase from two to three we just need three or four more 35:13 35 minutes, 13 seconds projects 400 500 grow any uh are there any plans enter new 35:23 35 minutes, 23 seconds high margin sub segments within epic portfol EPC there's no specific plan but yeah again 35:31 35 minutes, 31 seconds we Look out for specific projects with high eligibility criteria and high margin to quote but there's no specific 35:40 35 minutes, 40 seconds uh which we have decided on path to take for these things but again we are in look out for some pre-cast project or some another project 35:49 35 minutes, 49 seconds which has high margin and these things we are in look out but nothing has been decided or nothing has been chosen as of now. 35:58 35 minutes, 58 seconds Okay. Okay. And if you talk about the project delay or cost over overruns 36:06 36 minutes, 6 seconds means historically. So have there been any kind of project delays during the recent quarter or prior to that as well? 36:14 36 minutes, 14 seconds No project has been delayed but again it's mostly part of the department that has been at fault and there's no no project where the penalty has been 36:22 36 minutes, 22 seconds delayed on us because of our delay and mostly we account for the you know the rainy season delay or the pollution 36:32 36 minutes, 32 seconds delay or some other delay. We account for that and we expect that to happen. 36:36 36 minutes, 36 seconds We are already prepared and it's already presumed to build in that this 18 months project will finish in around 24 or 26 36:44 36 minutes, 44 seconds month because of the pollution or other things and plus we have a escalation to cover the overhead part that also covers overhead and cost part also. 36:54 36 minutes, 54 seconds Okay. Okay. Okay. So you mean to say that if there are any delays so those are caused by external factor only correct? 37:02 37 minutes, 2 seconds Yeah. Okay. 37:06 37 minutes, 6 seconds What is the current uh capacity utilization? Talk execution teams. 37:13 37 minutes, 13 seconds Currently our execution team which whole execution team is fully utilized. 37:17 37 minutes, 17 seconds There's no open but yeah we keep the hiring is keep on happening and uh projects keep on finishing like one 37:24 37 minutes, 24 seconds project NIT Delhi is about to finish in 1 month or two. So we expect them to shift at another site and another place. 37:32 37 minutes, 32 seconds So it's we have some ample people with us which are ready to move and ready to go for the new site but again right now it is full with with bill to book to two 37:42 37 minutes, 42 seconds times it is more or less occupied. 37:47 37 minutes, 47 seconds Okay. Okay. Uh thank you sir and uh uh so actually uh there are last few questions from my side uh that is a can 37:55 37 minutes, 55 seconds of quantify the benefits expected from the planned one 142 million machinery investment approximately 38:04 38 minutes, 4 seconds that has been planned quantify the benefit. 38:10 38 minutes, 10 seconds Yeah, again the machinery we used to purchase regularly and he's going to add add to 38:20 38 minutes, 20 seconds our which we sometimes we have to get on rent or something which will now the rental won't be there. So again that 38:26 38 minutes, 26 seconds will add to our um bottom line a bit but we can't quantify exactly how much will it contribute but over the time it will 38:35 38 minutes, 35 seconds again help us to sentence also speed our work and get on time and get a good margins but quantifying exactly 38:41 38 minutes, 41 seconds majorly we are buying scaffolding shuttering material from this which we are taking on rentals also. So these are 38:50 38 minutes, 50 seconds such products which generally does not depreciate a lot over the year 38:56 38 minutes, 56 seconds but rental is uh high. So we are buying these shutting material for the bigger 39:03 39 minutes, 3 seconds projects. Generally we are in the building projects. So it is something which can be bought a lot and uh it is 39:11 39 minutes, 11 seconds never ending process. So instead of renting we are looking to have our own shuttering. Although we are every year 39:19 39 minutes, 19 seconds we were also buying this uh on a regular interval but now with the IPO we have got more shattering. 39:30 39 minutes, 30 seconds Okay. 39:34 39 minutes, 34 seconds What portion of the receivables is from the government clients and what comfort that that can that investors can take on collection part. 39:46 39 minutes, 46 seconds So uh most of the receivables are from the government only and we are doing very limited private projects like Delhi 39:55 39 minutes, 55 seconds public school or unit they all the Delhi public school 40:01 40 minutes, 1 second have ample funds with them. So we try to bid projects which have funds already 40:08 40 minutes, 8 seconds available with them for the particular project. So most of the receivables are government only 40:16 40 minutes, 16 seconds sir. Okay. So any so any particular number that you would like to specify or 40:24 40 minutes, 24 seconds yeah around 90% is government only say unit also is supreme court monitor committee that's been paying us. So we we consider as safe and government only. 40:35 40 minutes, 35 seconds So in that case one big decation is of private which has not started but yeah um so 70% you can say figure is 40:44 40 minutes, 44 seconds government and 30% is private if you take unit in private 70 30 correct yeah yeah yeah if you take in private 40:51 40 minutes, 51 seconds and hana in private it's a overall yeah overall talk about 40:59 40 minutes, 59 seconds and what is the working capital with the uh actually we are in the EP 41:09 41 minutes, 9 seconds EPC case when the EPC cycle gets over we are expecting to reduce the working 41:16 41 minutes, 16 seconds capital cycle to 75 days 80 days at least because now if you see one of the 41:24 41 minutes, 24 seconds project in Narila is almost completed and we are expecting that uh 41:31 41 minutes, 31 seconds our uh receivable would come at the handover stage. 41:35 41 minutes, 35 seconds And it will reduce our working capital amount that will come out. 41:48 41 minutes, 48 seconds Okay. So we are targeting to reduce it to 75 days at least. Okay. 41:56 41 minutes, 56 seconds Okay. Thank you. So the last one from the last one. uh so that what is the margin difference different differentials between government versus 42:03 42 minutes, 3 seconds private projects and as well how do you see the mix evolving over the next couple of years or 3 to four years maybe 42:12 42 minutes, 12 seconds uh margins are similar because that's what we have to quote and we have to get it not that the private give a better margin or government gives a less margin 42:20 42 minutes, 20 seconds you have to go yourself unless you want to go into low margin no one will force you to go and we don't go it and uh we 42:28 42 minutes, 28 seconds would remain Again similar to this only next to 45 also we want to keep it at 7030 more focus on government projects and less on private projects 42:37 42 minutes, 37 seconds because ultimately private projects are market driven and uh still a risk factor is there. So we want to keep it a better 42:45 42 minutes, 45 seconds risk and less risk. So 70 is what we are targeting and more to that. 42:53 42 minutes, 53 seconds Okay. So for next four four to five years as well the same will be like 43:00 43 minutes we are more focused on government project only okay then okay okay thank okay for so that was it from 43:09 43 minutes, 9 seconds my side thank you so much for for all the information and all the very best for upcoming interviews thank you thank you 43:17 43 minutes, 17 seconds thank you ladies and gentlemen to ask a question please press star and one on phone. 43:32 43 minutes, 32 seconds We're going to be 43:55 43 minutes, 55 seconds Please. 43:57 43 minutes, 57 seconds As there are no further questions, I now hand the conference back to Mr. Gautam Nagar from Equbridge X Advisor for closing comments. Over to you. 44:09 44 minutes, 9 seconds Thank you. On a behalf of Yes, I'm audible. Yes, please go ahead. 44:13 44 minutes, 13 seconds Yeah, thank you. On a behalf of Globe Civil Projects India Limited and Equip Project Advisers, I thank everyone for 44:21 44 minutes, 21 seconds taking the time to join today's earning call. If you have any queries, you can connect to us at info@ equipex.com. 44:28 44 minutes, 28 seconds Thank you once again for joining the conference. Thank you. Thank you. Thank you. Thank you. 44:35 44 minutes, 35 seconds On behalf of Equbridge Xadvisor Private Limited, that concludes this conference. 44:39 44 minutes, 39 seconds Thank you for joining us and you may now disconnect your lines.