GPT Infraprojects Limited — Q3 FY26

GPT Infraprojects Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=sxT4fJCUgJ8 Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to the GPT Infra projects limited Q3 and 9M FY26 earnings conference call hosted by MFG in time. 0:11 11 seconds As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:20 20 seconds during this conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr. Omar 0:29 29 seconds Bagwi from MG in time for opening remarks. Thank you and over to you Mr. Omar Bagway. 0:36 36 seconds Thank you. Uh good afternoon everyone. I welcome you all to the earnings conference call to discuss Q3 and 9 months FY25 results of GPT infra 0:44 44 seconds projects Limited. On behalf of GPT Infra projects Limited, I'm delighted to welcome you all to this call. Thank you for taking the time out on this call to 0:53 53 seconds discuss our latest financial results and performance. To discuss our results, we have with us from the management Mr. 0:59 59 seconds Atul Tantia, the joint managing director and CFO. He will take you through their results and then we will proceed to Q&A 1:06 1 minute, 6 seconds session. Before we proceed to the call, a small disclaimer. This conference may contain certain forward-looking statements about the company which are 1:14 1 minute, 14 seconds based on the beliefs, opinions, and expectations of the company. As on date of this call, the actual results may differ materially. These statements are 1:22 1 minute, 22 seconds not guarantee of future performance and involve risk and uncertaintities that are difficult to predict. A detailed safe harbor statement is also given in 1:30 1 minute, 30 seconds the company's investor presentation. Now I would like to hand the call over to Mr. Atul Tantia. Thank you and over to you sir. 1:39 1 minute, 39 seconds Thank you Omar. Good afternoon everyone and a warm welcome to the GP Intra Project Limited earnings conference call for the third quarter and the nine months ended December 31, 2025. 1:50 1 minute, 50 seconds I hope you all have had the opportunity to go through our financial results and the investor presentation released on the yesterday on the website of the 1:58 1 minute, 58 seconds stock exchanges and on our website as well. I will briefly take you through the key highlights for the quarter and the nine months. Before I move to the 2:07 2 minutes, 7 seconds financial performance, I would like to highlight a significant strategic development during the quarter. During the quarter, GPD Intropics Limited 2:15 2 minutes, 15 seconds entered into a share purchase agreement to acquire 100% equity stake in Araon Builders and Engineers Private Limited, 2:23 2 minutes, 23 seconds a wellestablished signaling EPC contractor with over three decades of execution experience in the Indian railway ecosystem. 2:30 2 minutes, 30 seconds Alcon is among a limited set of technically qualified players in the country that are eligible to independently bid for large value 2:38 2 minutes, 38 seconds contracts for signaling exceeding more than rupees 100 crores for Indian railways and RBNL. 2:45 2 minutes, 45 seconds Alcon provides end-to-end EPC solutions covering design, procurement, installation, integration and testing and currently has an unexed order book 2:54 2 minutes, 54 seconds of approximately rupees 200 crores providing strong forward revenue visibility. The signaling uh EPC segment 3:02 3 minutes, 2 seconds is a highly specialized space with significant entry barriers and only around a handful of contractors nationwide who possess comparable 3:10 3 minutes, 10 seconds qualifications, certification and execution capabilities. This acquisition provides GPT a plug-and-play platform 3:17 3 minutes, 17 seconds with an experienced technical team, established OEM relationships and a ready execution ecosystem which would otherwise take several years to build 3:25 3 minutes, 25 seconds organically strategically. This acquisition marks GPD's entry into the high margin 3:32 3 minutes, 32 seconds signaling EPC system and comp and complements our long-standing relationship of over four decades with Indian railways. 3:40 3 minutes, 40 seconds The opportunity is substantial and the current signaling EPC market is estimated at around USD 1.5 billion and the Indian database is planning a 3:48 3 minutes, 48 seconds capital outlay of nearly rupees 1 trillion over the next six years towards signaling modernization with GPD's strong governance framework balance and 3:57 3 minutes, 57 seconds strength of balance sheet and execution discipline. We believe the signaling business has the potential to emerge as a meaningful contributor to both 4:04 4 minutes, 4 seconds revenues and margins over the medium to long term. 4:08 4 minutes, 8 seconds This transaction is an allcash deal of rupees 154.19 crores with a structured hold back and the closing is expected on 4:17 4 minutes, 17 seconds or before March 31, 2026 subject to condition precedence as per the SBA. 4:24 4 minutes, 24 seconds Now moving forward to our financial performance for the third quarter and 9 months ended December 31, 2025. For Q3 FI26 4:33 4 minutes, 33 seconds our on a standard basis the revenue from operations stood at rupes 273.3 crores and on a consolidate basis revenues for 4:40 4 minutes, 40 seconds the quarter ended at rupes 283.9 crores a growth of approximately 2%. For the 9 months ended FY26 standard revenues were 4:48 4 minutes, 48 seconds at rupees 852.4 crores as compared to rups 790.3 crores in the same period last year while on a considered basis 4:55 4 minutes, 55 seconds revenues stood at rupes 875.2 2 crores compared to rupees 87.3 crores in 9 months FI25. 5:03 5 minutes, 3 seconds Our standalone AIDA for Q3 FI26 was at rupees 39.9 crores compared to rupees 35.8 crores last year while aida for the 5:11 5 minutes, 11 seconds 9 months ended stood at rupees 123 123.6 crores compared to rups 110.3 crores in 5:18 5 minutes, 18 seconds 9 months fi25 on a consolid basis for the quarter stood at rupees 41.8 8 crores and for 5:25 5 minutes, 25 seconds the 9 months ended December 31, 2025, Aida was at rupees 130.3 crores. We 5:32 5 minutes, 32 seconds continue to maintain our long-term aida margin guidance of over 13% which has been our hurdle rate historically 5:39 5 minutes, 39 seconds with improvement in revenues and better absorption of fixed costs. Operational efficiencies continue to support strong margin stability and we expect to 5:48 5 minutes, 48 seconds enhance the these levels going forward as well especially with the acquisition of alcohon and the Africa operations contributing better going forward. 5:58 5 minutes, 58 seconds Profitability has also remained healthy. 6:00 6 minutes Consolidated PAT for Q3 FI26 stood at rupees 20.2 crores while for the 9 months consolidate PAT was at rupees 6:08 6 minutes, 8 seconds 65.4 crores compared to 55.8 8 crores during the same period last year on a standalone basis packed was at rupes 6:15 6 minutes, 15 seconds 19.6 crores compared to rupees 63.2 2 crores for the 9 months. F26 6:23 6 minutes, 23 seconds cash flows remain stable supported by strong execution discipline working capital management and reduction in continued expectation of reduction 6:31 6 minutes, 31 seconds interest cost. The exhibition was muted during the quarter on account of extended monsoon and festival season in October month. 6:41 6 minutes, 41 seconds Now coming to the segmental performance, the infrastructure segment continues to be the backbone of our business for the 9 months ended December 31, 2025. The 6:49 6 minutes, 49 seconds infrastructure segment reported revenues of rupes 800 crores. It is approximately 94% of the company's due to revenues. 6:56 6 minutes, 56 seconds Key projects such as priag expressway bypass and other ongoing contracts continue to perform well and drive 7:03 7 minutes, 3 seconds execution. The infrastructure segment order book backlog was at rupees 3942 crores as on December 31, 2025. The 7:12 7 minutes, 12 seconds sleeper segment in Panagar generated revenues of rupees 55 crores during the 9 months ended December 31, 2025. And 7:20 7 minutes, 20 seconds the African operations generated revenues of approximately 12 crores uh during the 9 months. It has an order 7:28 7 minutes, 28 seconds book of rupees 473 crores as on this days. The performance was primary driven by the steady demand in the domestic market along with contributions from our 7:36 7 minutes, 36 seconds South Africa operations. We continue to work towards improvement improving the utilization levels across geographies. 7:43 7 minutes, 43 seconds The Ghana factories also started operations recently and will contribute to the revenue and margins in Q4 onwards. 7:50 7 minutes, 50 seconds Now coming to our orderbook position, the highlight for the quarter has has been the new orders backed by the company. We have received new order info 7:59 7 minutes, 59 seconds of approximately rupees 1072 crores in Q3 and were further declared L1 in a large contract of rupees 1201 crores 8:06 8 minutes, 6 seconds yesterday. Our share being 40% that is rups 480 crores as on December 31 2025. 8:13 8 minutes, 13 seconds The company has an net unexed order book of rupes 4415 crores excluding the L1 representing approximately 3.75 times 8:22 8 minutes, 22 seconds our FI25 revenues providing strong medium-term revenue visibility during the year till date we have achieved an 8:29 8 minutes, 29 seconds order inflow of rupees 1770 crores excluding the L1 and this has been enabled us to bump up our fullear target 8:37 8 minutes, 37 seconds for the order inflow from rupes 2,000 crores which was our previous guidance to rupes 2,500 100 crores. This would be 8:45 8 minutes, 45 seconds the highest order improve in any financial year for GPD infra. 8:49 8 minutes, 49 seconds With a strong order book, diversified project portfolio, stable margins, and improving balance sheet metrics, we believe we are well positioned to 8:57 8 minutes, 57 seconds sustain growth momentum while maintaining financial discipline. As we move forward, our focus remains on timely execution, selective bidding, 9:04 9 minutes, 4 seconds strengthening our balance sheet, and improving return ratios while continuing to maintain uh to build a robust and healthy order pipeline. Added to this, 9:12 9 minutes, 12 seconds we will focus on developing the signaling business manifold given the plug-and-play platform with the acquisition of Alcon builders and engineers. 9:21 9 minutes, 21 seconds With this, I would now like to open the floor for any question and answers. I'll request the moderators to kindly cue the questions. Thank you. 9:29 9 minutes, 29 seconds Thank you very much. We will now begin with the question and answer session. 9:33 9 minutes, 33 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 9:40 9 minutes, 40 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 9:50 9 minutes, 50 seconds The first question comes from the line of Daril Pandya from Finestrust Capital. Please go ahead. 9:57 9 minutes, 57 seconds Am I able? Yes. Yes, please go ahead. 10:00 10 minutes Thank you. So, uh, I just wanted to understand the ration behind, you know, acquiring Alcon builders. Uh technically if you see this is this business is into 10:09 10 minutes, 9 seconds signaling, telecommunication and light works and uh we are quite into infrastructure and you know a bit of railways that is into uh other parts. So 10:18 10 minutes, 18 seconds just wanted to understand how is this going to benefit us in in longer time frame and what are we seeing in this company as you know we have acquired 154 10:25 10 minutes, 25 seconds cr valuation company doing sales of just 100 crores. So where are where are we seeing this company going in next two to three years and how is it going to you know uh contribute to us in GPT group. 10:38 10 minutes, 38 seconds Sure thank you. So um Alcon does uh railway signaling and telecommunication work point in railways. We are bidding 10:46 10 minutes, 46 seconds for a lot of these EPC contracts wherein signaling is almost a 15% kind of portion for the entire EPC contract bid 10:55 10 minutes, 55 seconds that we generally do submit to the new release. With this acquisition, we will be able to do uh signaling works inhouse compared to outsourcing it to other 11:04 11 minutes, 4 seconds agencies who were charging a 20% kind of margin. This business with Alcon has an a bit margin of approximately 22%. And that will be directly available to us. 11:15 11 minutes, 15 seconds The order book there is approximately like I said is 200 crores. So that again order book will contribute heavily to the margin with us stepping in obviously 11:23 11 minutes, 23 seconds we'll be able to bump up the order book given our relationship with Indian railways and other our other EPC business as well. 11:31 11 minutes, 31 seconds Mhm. As regards the valuation of 154 crores, the company is sitting on cash of almost 45 crores which is available 11:39 11 minutes, 39 seconds to the uh to GPT and uh therefore the net acquisition value is close to 100 odd crores compared to 154 crores which 11:46 11 minutes, 46 seconds is the headline acquisition value the uh so which represents almost 1x the revenue. The acquisition is not uh 11:55 11 minutes, 55 seconds dilutive to our valuation and it will be accretive to our valuation as such. 12:01 12 minutes, 1 second Understood. And what is the PAT margin that these companies doing? 12:06 12 minutes, 6 seconds The PAT margin. So they don't have any debt. So after 22% at 22% a bit level, it would uh translate to almost a 15% 12:14 12 minutes, 14 seconds kind of PAT. That is an adjusted PAT because the promoters were drawing a salary which was which was quite high. 12:20 12 minutes, 20 seconds So that would obviously fall off once the acquisition is complete. 12:24 12 minutes, 24 seconds And what is the plan for next two to three years? Where do we see this you know 100 crores of revenue scaling from now? So, so we so we see this in the 12:32 12 minutes, 32 seconds next 3 years the revenue to double from here. So, it would be a 200 crore kind of business for us in the next 3 years. 12:39 12 minutes, 39 seconds Okay. Understood. The second question is with regards to our execution uh uh execution part. Uh sir, as of late as we 12:48 12 minutes, 48 seconds sit on almost 5,000 cr order book, we have got tremendous high orders you know in last 6 months. wanted to understand one thing that you know uh in the 12:56 12 minutes, 56 seconds results we do not see we didn't see the kind of execution that we should be you know probably we were anticipating and 13:02 13 minutes, 2 seconds uh for our 20% guidance as well we need to do a tremendous hard job for Q4 uh if 13:10 13 minutes, 10 seconds we need to meet that guidance so what is the plan in that and what is something that is stopping us to you know aggressively go on this uh order book 13:18 13 minutes, 18 seconds that we have now because earlier order book was around three times now we have around four and a five times So just to understand how aggressive are we for now? 13:27 13 minutes, 27 seconds Sure. So the so the incremental orders that they received are largely in December and one L1 in January itself which is approximately 15 units out of the 5,000. 13:36 13 minutes, 36 seconds So you have to appreciate that those orders don't add to the revenue on day one. It takes about four four to five months to start adding to the revenue 13:44 13 minutes, 44 seconds because a large part of the cont uh thing is also in terms of design of the contracts and uh handing over of the land etc. 13:52 13 minutes, 52 seconds So those 1500 cr of auto bookers has not really contributed to the revenue. There can be Q3 like I said in my open remarks 14:00 14 minutes the uh execution was depressed due to the extended monsoon in October. In this year I'm sure you're aware India has 14:07 14 minutes, 7 seconds faced heavy monsoon and this was also extended till mid of October. October also represents the entire dura puja, 14:15 14 minutes, 15 seconds navatri and uh Diwali period which traditionally leads to a lot of dis disruption due to the workers etc. So 14:23 14 minutes, 23 seconds that has also affected Q3 in this in uh for us. Generally durapani happens in September and you know the Diwali in 14:32 14 minutes, 32 seconds October but this time October had both the festivals. 14:36 14 minutes, 36 seconds So uh we are still confident of maintaining our uh guidance in terms of 1400 crores of orders this uh 1,400 14:44 14 minutes, 44 seconds crores of revenues this year compared to 118 crores last year which would represent a growth of almost 220 crores that is close to 20% 18 to 20%. 14:54 14 minutes, 54 seconds Uh given the strong performance that we seeing in Q4 and I'm sure that we'll uh come back with a bang for Q4. 15:02 15 minutes, 2 seconds Oh all the best and I'll fall back in the queue. Thank you so much. Sure. Thank you. Thank you. Thank you. 15:09 15 minutes, 9 seconds A reminder to all participants, anyone who wishes to ask a question may press star and one on a touchstone telephone. 15:15 15 minutes, 15 seconds The next question comes from the line of Pranov from Proentiquity. Please go ahead. Yeah. Hi, good afternoon. Am I audible? 15:23 15 minutes, 23 seconds Yes, please. 15:25 15 minutes, 25 seconds Yeah. So, so you said you're maintaining the guidance of like 18 or 20%, for that in Q4 you'll have to do like more than 15:34 15 minutes, 34 seconds 500 kores which is like almost a 50% air on air growth. So, do you actually see that happening in Q4? 15:43 15 minutes, 43 seconds So, it's not more than 50% uh growth in Q4. Last year Q4 was significantly 15:50 15 minutes, 50 seconds higher. So we see the 500 cr close to 4500 cr kind of number happening in Q4 15:57 15 minutes, 57 seconds for us. Last year uh Q4 was approximately 16:06 16 minutes, 6 seconds uh around 380 crores 380 crores. 16:11 16 minutes, 11 seconds So so 3 from 380 to 480 is not a 50% kind of growth 4000. So that's almost like a 20 30% kind of growth. So we see 16:20 16 minutes, 20 seconds that 30% kind of growth happening for this year for this quarter. 16:24 16 minutes, 24 seconds Right. Okay. And uh my next question was like uh as of this moment you had like the highest order book as well. 16:31 16 minutes, 31 seconds So uh just to just to stop just to stop you there. Sorry just to stop you there. Yeah. Yeah. Yeah. Yeah. Yeah. Go ahead. 16:36 16 minutes, 36 seconds Two or uh to achieve that there are two or three things which should also contribute. One is this acquisition of Alcon which will give us revenues in Q4. 16:43 16 minutes, 43 seconds Second is also the operations in Ghana which will also contribute. So these things have not happened in Q in the last 9 months. So both these things will 16:51 16 minutes, 51 seconds also hap uh uh contribute to the 500 core kind of number that we're looking for in Q4. 16:58 16 minutes, 58 seconds So will that alone consolidation happen in in FY 27? 17:04 17 minutes, 4 seconds No. So the uh so it the acquisition is with effect from 1st January. 17:10 17 minutes, 10 seconds So we have gained we have gained transitory control as per the share purchase agreement signed yesterday. And the acquisition is with from 1st 17:18 17 minutes, 18 seconds January, right? Okay. Uh my next question was like you have the highest as a order book ever in the company's history I 17:27 17 minutes, 27 seconds guess. So that's almost like five times order book to revenue ratio. So what do you expect in FI27 17:34 17 minutes, 34 seconds and to finance that do we expect any fundraising happening in the region? 17:42 17 minutes, 42 seconds So um at 527 we will we are expecting more than 25% kind of growth uh given 17:49 17 minutes, 49 seconds the strong order book that we do have we will uh give the full year guidance in our annual results which is in uh which 17:58 17 minutes, 58 seconds we will do the con call sometime in May and uh however having said that given the order book of almost four times our 18:06 18 minutes, 6 seconds revenues we expect almost 25% kind of growth our revenue Our execution cycle has always been strong and we expect it 18:14 18 minutes, 14 seconds to remain strong in terms of financing the same. I think that we don't expect any um dilution or equity fund raise at 18:21 18 minutes, 21 seconds this moment. We are uh quite we do have strong internal approvals and cash flow to bid also being strong almost at 80%. 18:30 18 minutes, 30 seconds So do we don't expect any u equity fund raise to happen. Obviously some working capital debt would be required both in terms of funded and non-funded in terms 18:38 18 minutes, 38 seconds of bank entities etc which we will approach our consortium bankers right okay so uh just a uh industry 18:47 18 minutes, 47 seconds question like if you see like across the industry there were like a slowdown of orders in terms of government orders so 18:54 18 minutes, 54 seconds but in that scenario also we backed like quite a few orders so could there be any margin pressure or like we'll continue 19:01 19 minutes, 1 second to maintain the similar margin No, I've said that in my opening remarks as well. We maintain the orbit 19:09 19 minutes, 9 seconds hurdle rate of 13%. And we expect to be north of 13% especially with the addition of alcohol as well as the operations in Africa also picking up. 19:19 19 minutes, 19 seconds Right sir and my last would be any update on the pledge and the release of the film. 19:26 19 minutes, 26 seconds So the pledge stands today at almost 35% of the uh promoter of the total um company shareholding. We already 19:34 19 minutes, 34 seconds approach the consortium to reduce that further. We expect it to come down to 25% in the near term and then further reduce from there. 19:42 19 minutes, 42 seconds Correct. Thank you. Thank you for your time. Thank you. Thank you. 19:47 19 minutes, 47 seconds Thank you. The next question comes from the line of reti from Alpha Plus Capital. Please go ahead. 19:55 19 minutes, 55 seconds Uh thanks for taking my question. Uh so last quarter you mentioned uh short-term borrowings rose temporarily due to you 20:03 20 minutes, 3 seconds know months on execution and invoicing delays which led to working capital days increased. Now could you share an update as to what is our current working 20:11 20 minutes, 11 seconds capital days as compared to like last quarter? 20:16 20 minutes, 16 seconds So the borrowings has come down slightly by almost 10 to 15 crores. Uh compared to the 168 cr kind of number that was 20:25 20 minutes, 25 seconds there in last quarter has come down by almost 10 to 15 crores as of now. The uh in terms of working capital days 20:34 20 minutes, 34 seconds obviously if the bodies has come down working capital days has also kind of shaved off by what 10 odd days. So we are now back to double digits in terms of working capital days. 20:43 20 minutes, 43 seconds M okay say like that's it from my end thanks thank you thank you the next question comes from 20:51 20 minutes, 51 seconds the line of part Kotakup from plus 91 asset management please go ahead hi sir 20:58 20 minutes, 58 seconds hopefully you're doing well uh most of uh most of the questions have been answered just you mentioned to the 21:05 21 minutes, 5 seconds previous participation participant that debt has actually come down meaning the acquisition that we did was fully from internal acroals is 21:14 21 minutes, 14 seconds So the acquisition has not been completed. Acquisition is um the share purchase agreement was signed yesterday. 21:21 21 minutes, 21 seconds Like I said in my opening remarks, acquisition uh will close on compliance of certain condition precedent in the SPA that is expected to close on or before March 31, 2026. 21:33 21 minutes, 33 seconds Okay. Super. That's helpful. Uh sir, secondly, concrete sleepers we are guiding for about 130 140 crores of 21:40 21 minutes, 40 seconds revenue. So is is it is it Ghana which has not really picked up and we expect Q4 to be really strong. 21:48 21 minutes, 48 seconds So concrete sleepers till now uh we have done close to 21:55 21 minutes, 55 seconds sorry we've done close to 78 crores in terms of revenues. 22:00 22 minutes We expect uh this quarter to do almost 45 to 50 crores in terms of concrete 22:07 22 minutes, 7 seconds business. So we would be uh doing close to 125 crores for congress keepers for the full year which is quite close to 22:14 22 minutes, 14 seconds the overall guidance for the year at 130 crores. 22:18 22 minutes, 18 seconds Absolutely sir. And sir lastly on the execution front we like uh I think uh we've already seen we have a pretty 22:26 22 minutes, 26 seconds healthy order book. Um assuming the execution period for order book would be about two years right? So maybe uh even 22:34 22 minutes, 34 seconds with a slight delay by the end of FY28, we should at least see this uh order book getting executed. 22:42 22 minutes, 42 seconds No, the entire order book of 5,000 doesn't get executed by FI28. 22:46 22 minutes, 46 seconds The order book would get this entire order book would get executed by FI29 because a large part of the audio book 22:53 22 minutes, 53 seconds like I said previously as well has been in the last 45 odd days. So uh that will 23:00 23 minutes only that will take 3 years to get executed minimum. So uh we I Spy 29 this entire 5,000 course affordable book could get executed. 23:10 23 minutes, 10 seconds Sure sir. Sure. Sure. Uh thanks a lot and wish you all the very best for the quarters to come. 23:17 23 minutes, 17 seconds Thank you. Thank you. The next question comes from the line of Shiva Mankar an individual investor. Please go ahead. 23:27 23 minutes, 27 seconds Hi Atul, can you hear me? Yes, please go ahead. 23:32 23 minutes, 32 seconds Yeah. Uh most of my questions are answered. It's just about the this this new strategic acquisition. So uh are you 23:41 23 minutes, 41 seconds able to provide some details on the phases of the transaction if there are any because you mentioned you are going to pay it uh through internal approvals. 23:51 23 minutes, 51 seconds I'm just curious to know like how how that will happen because um you know it doesn't look like there's that much cash at one one one go. 24:02 24 minutes, 2 seconds We are we will pay approximately 125 odd crores in the next 45 odd days. Uh the internal approval is quite strong. We do 24:11 24 minutes, 11 seconds have some investments sitting on the balance sheet as well in terms of um mutual funds etc. And we have we do have the working capital lines which are not 24:19 24 minutes, 19 seconds fully drawn down. We do have adequate drawing power but the working capital lines from the banks are not fully utilized. So obviously that will get 24:26 24 minutes, 26 seconds also fully utilized if uh if I say this internal approvals as well. 24:32 24 minutes, 32 seconds Okay. And with that uh what would be your updated uh debt guidance because uh 24:40 24 minutes, 40 seconds from last year you know so so debt would obviously increase by 24:46 24 minutes, 46 seconds almost uh 80 odd crores given the draw down of the working capital but uh that 24:53 24 minutes, 53 seconds would that like I said previously as well this um acquiry company sitting on cash of almost 45 crores. So we are 25:01 25 minutes, 1 second quite comfortable with that because once that uh acquisition is complete we can use that cash to repay the debt as well. 25:10 25 minutes, 10 seconds Okay. Okay. Okay. Yeah. And uh that that will mean our uh you know next year sort 25:17 25 minutes, 17 seconds of interest costs are going to be in 3540 cr range. 25:22 25 minutes, 22 seconds No no it should not be 3540 cr range because interest cost would be below 30 would be below 30 crores next year. 25:30 25 minutes, 30 seconds Oh yes see but you're expecting uh yeah because because this quarter again you know there was interest I mean 25:38 25 minutes, 38 seconds expense of some 10 crores so that that's that's my basis to actually so and with this addition I'm thinking that it'll go 25:45 25 minutes, 45 seconds even higher but but yeah but but you're comfortable with that right so this uh 9 months interest cost has 25:52 25 minutes, 52 seconds been 23 odd crores which is expected to close the year at almost 27 28 crores we don't we see an incremental interest 26:00 26 minutes cost of almost four odd crores for from this acquisition. Okay. Okay. 26:05 26 minutes, 5 seconds But that that with with with the acquisition my bida will also go up by almost 25 odd crores. 26:11 26 minutes, 11 seconds Oh I see. Okay. Okay. And uh what you also mentioned during last uh call that there is uh another uh EPC sort of uh 26:21 26 minutes, 21 seconds holiday that we can expect. So do you think that is going to happen? 26:25 26 minutes, 25 seconds Orin you you mentioned that there's another APC order from you know the likes of Ivory Coast order you got we can expect 26:35 26 minutes, 35 seconds something like that from that region an APC order you think that is in line yes so for Africa we are actively 26:42 26 minutes, 42 seconds pursuing opportunities in couple of countries let's see how it plays out Africa I've always said is a very patient continent nothing happens very 26:50 26 minutes, 50 seconds fast in Africa the things take their own time so we'll have to wait Okay, perfect. Thank you. 27:00 27 minutes Thank you. 27:01 27 minutes, 1 second Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the 27:08 27 minutes, 8 seconds touchstone telephone. The next question comes from the line of Daril Pandya from Fin Trust Capital. Please go ahead. 27:18 27 minutes, 18 seconds Thank you again for taking my questions. 27:21 27 minutes, 21 seconds Sir, my question is with more regards to the interest cost. uh because since we've been tracking this company uh the fund raise that we did you know we 27:30 27 minutes, 30 seconds raised we uh reduced our debt significantly but offly we are not seeing the effect on the uh on the on 27:38 27 minutes, 38 seconds the penal side because you know offly what what we have been paying is something that is there so just to understand how is this you know how is 27:45 27 minutes, 45 seconds this working and uh how much have we completely deployed or is there something that is still yet to be deployed from the QIP proceeds. 27:54 27 minutes, 54 seconds part of the QP proc also being used for this acquisition as well. So um interest cost is coming has come down. So at the 28:02 28 minutes, 2 seconds peak I think 2 years ago interest cost was close to 40 plus crores. This year uh it'll come down to below 30 crores as 28:11 28 minutes, 11 seconds well. Last year also it was around 27 28 crores. So we are looking at reduction in interest cost going forward further from here given the strong cash rate 28:20 28 minutes, 20 seconds that we do have. In addition to that, like I said, the acquisition, although we'll add on incremental debt, but uh 28:27 28 minutes, 27 seconds that would be a temporary bridge because a large part of that would also be able to reduce due to the cash sitting on their balance sheet. 28:35 28 minutes, 35 seconds Yeah, but technically we will need some cash also to run the company again, right? 28:39 28 minutes, 39 seconds No, that company like has a very strong cash flow. They have zero debt on their balance sheet. They uh don't have you're talking about the acquisition or the 28:48 28 minutes, 48 seconds existing operations. the existing operations and the new operations because you know since it's sitting on a 50 50 cr cash but technically that money 28:55 28 minutes, 55 seconds will be you know needed to turn out more uh business in future. No. So, so that company has a very strong uh what do you call cash flow profile. We don't 29:04 29 minutes, 4 seconds anticipate any working capital uh requirement there to uh grow the business there. They have a very strong AIDA and cash to bida is also very 29:12 29 minutes, 12 seconds strong given the strong relationship they have with their vendors. They are able to provide the line of rate at the vendor level compared to having any bank 29:19 29 minutes, 19 seconds facilities. So, we don't anticipate much of uh challenge in that. 29:24 29 minutes, 24 seconds Mhm. And do we need of course uh continuing from the earlier question do we need any any fund raise or something 29:31 29 minutes, 31 seconds to you know execute this order book now or uh where do we need to invest now to you know scale up this number as you know as the base grows bigger. 29:41 29 minutes, 41 seconds So for uh executing this existing order book for GPT infra we don't need like I said much of fund raise from an equity 29:48 29 minutes, 48 seconds perspective obviously some working capital lines both in terms of fund based as well as bank limits we might require having said that uh with the use 29:58 29 minutes, 58 seconds of insurance bonds bank anti requirement has come down to a large extent we will uh be able to uh grow this business and 30:07 30 minutes, 7 seconds execute the order book basis the equity database that we do have right now. 30:12 30 minutes, 12 seconds And uh from uh you just mentioned the order book inflow we have uh upgraded the the order inflow from 2,000 or what was that? I just missed out. 30:22 30 minutes, 22 seconds So so the target for this year was new order inflow of 2,000 crores. We have already achieved 1770 crores correct plus the 480 crores that we announced L1 30:30 30 minutes, 30 seconds yesterday. M so we have kind of given the expectation that the 14 crores will convert to an confirmed order in the next couple of 30:39 30 minutes, 39 seconds days that 2,000 cr number is kind of already breached to 2250 odds. So that is why I'm saying that we have kind of bumped up our order to 2,500 cr target. 30:49 30 minutes, 49 seconds Understood. And just one last question uh sir uh since you know we are into this phase of uh new acquisition also and know we are trying to reduce on the 30:57 30 minutes, 57 seconds borrowing sides just to understand uh if we can you know slow down on the dividend process and use that money again to put up in the business rather than you know uh incentivizing the 31:06 31 minutes, 6 seconds investors for the sake of the company's interest just a suggestion so I think I think I I think the board has kindly uh mostly heard what you are 31:15 31 minutes, 15 seconds saying or discussed what you're saying that is why the dividend was brought down from 10 to 7 and a half% Correct. Correct. Absolutely. I understand. Thank you so much. 31:24 31 minutes, 24 seconds Thank you. 31:25 31 minutes, 25 seconds Thank you. The next question comes from the line of Viral Jane from SMG Finance. Please go ahead. 31:34 31 minutes, 34 seconds Uh hello. Am I audible? Yes, you're audible. Please go ahead. 31:38 31 minutes, 38 seconds Yeah, thank you for the opportunity. So, my first question was regarding with the uh execution part. So you did mention in 31:46 31 minutes, 46 seconds the previous quarter uh in Q2 FI26 that uh the H1 execution is typically 31:52 31 minutes, 52 seconds 40% of the full re uh full year revenue and uh looking at the second half uh we'll be getting the 60% of the 32:00 32 minutes contribution and uh reaffirmed 20% annual growth guidance am I correct 32:08 32 minutes, 8 seconds correct yeah so given that in 9 month FI26 the revenue growth is 8% year on year at the 32:16 32 minutes, 16 seconds consolidated level. So can you just uh help us to give a clear picture with regards to the implied execution 32:22 32 minutes, 22 seconds required in Q4 FI26 and uh whether can we expect any larger order to peak the 32:29 32 minutes, 29 seconds revenue execution in Q4 versus filling into the FI27. 32:36 32 minutes, 36 seconds So I think I did reply to this uh question previously but again I'll repeat it for the sake of clarity. We 32:44 32 minutes, 44 seconds expect Q4 uh revenue to be close to 500 crores, 40 to 500 crores which will enable us to achieve a revenue full year 32:51 32 minutes, 51 seconds revenue of close to 1,400 odd crores. So uh this is 32:58 32 minutes, 58 seconds something that uh is we feel is quite achievable and uh given the acquisition of alcon as well as the operations in 33:06 33 minutes, 6 seconds Ghana and Africa also picking up quite well and that is uh so if we do do 1400 crores that is like a 40% which we did 33:14 33 minutes, 14 seconds in cube till H1 which is 600 odd crores and the balance 800 which we are doing in H2. So that is what I think that 33:21 33 minutes, 21 seconds reaffirms my statement in the previous call that H1 is typically 40% and H2 is 60%. 33:30 33 minutes, 30 seconds Uh got it sir and can we expect any larger order to peak the revenue in Q4 versus spilling into FI27? 33:37 33 minutes, 37 seconds So like I said um means there are contracts which are performing quite well which we have 33:46 33 minutes, 46 seconds highlighted earlier as well. Drag Raj Ganga bridge, Kona Expressway, Rani Gage etc. So these are contracts which are performing Kola Guard for that matter. 33:53 33 minutes, 53 seconds So these are contracts which are performing already quite well and they will continue to perform well in FI27 as well. 34:01 34 minutes, 1 second Got it sir. And my next question was with regards to the monsoon related disruption. So in the previous quarter you did mention that the mansoon related 34:10 34 minutes, 10 seconds disruption impacted the execution and temporary billing. So from Q3 numbers the revenue has been quite flatish uh on 34:19 34 minutes, 19 seconds quarteron quarter basis. So can you give us a more clear picture on how much the execution was being deferred due to the 34:26 34 minutes, 26 seconds mansoon and uh whether uh this will fully normalize by Q4. 34:33 34 minutes, 33 seconds So I would say that almost 20% close to 45 to 50 crores of revenue was deferred due to monsoon. This obviously will be 34:41 34 minutes, 41 seconds um we will be able to achieve that balance number in Q4 as well which will enable us to do the 500 pro number in Q4. 34:50 34 minutes, 50 seconds Got it. So that was all from my side. Thank you. 34:57 34 minutes, 57 seconds Thank you. The next question comes from the line of Pratik Sha investing alpha. Please go ahead. 35:05 35 minutes, 5 seconds Hello. Yeah. Hi sir. I hope I'm audible. Yes, please go ahead. 35:10 35 minutes, 10 seconds Yeah. Uh so my question is on the recent acquisition of Alcon builders and uh engineers. So uh it has given us entry 35:18 35 minutes, 18 seconds into a high barrier high margin signal signaling EPC segment with about 22% of AITA margin. So can you elaborate on 35:26 35 minutes, 26 seconds revenue contribution expected from Alcon in uh the coming year the coming financial year? 35:33 35 minutes, 33 seconds Yeah. So like I said previously as well, Alcon did revenues of almost 100 crores in FI25. 35:39 35 minutes, 39 seconds This year in 9 months they've done revenues of almost 104 crores. We expect them uh Alcon to do revenue of another 35:47 35 minutes, 47 seconds 30 crores in this year to close the year almost 130 crores. Given the order book that they uh they have and the new order 35:55 35 minutes, 55 seconds pipeline that they've already bid for, we expect FI27 revenues to be 140 odd flows as well for Alcon which will contribute to the fullear revenues for 36:03 36 minutes, 3 seconds FI27 for GP in as well on a consolidation basis. 36:08 36 minutes, 8 seconds Okay. So do we uh plan to scale signaling beyond Elco Elcon's existing 200 cr of order book? 36:16 36 minutes, 16 seconds Yes, obviously we uh this 200 crores is just the order book as on bid. We will continuously bid for new contracts in Aron as well. And like I said previously 36:24 36 minutes, 24 seconds uh we expect the revenue to double in the next 3 years to 200 odd crores. 36:30 36 minutes, 30 seconds This is and obviously the audit book will grow in proportion to the revenue guidance as well. 36:36 36 minutes, 36 seconds Got it. Got it. Uh and sir another question is like uh how should we think about the capital allocation between 36:44 36 minutes, 44 seconds traditional EPC signaling EPC and uh HJB projects? 36:50 36 minutes, 50 seconds So I think the traditional U EPC is requires the maximum capital signaling EPC will not require much of capital allocation other than this acquisition 36:59 36 minutes, 59 seconds which is being paid to their shareholders to the existing shareholders of Alcon. Uh the uh HAM project obviously will require 4550 37:08 37 minutes, 8 seconds crores of investment from us which will partly be funded by the margins that we do make on the APC portion of the ham as well. 37:17 37 minutes, 17 seconds Okay. Okay then. Uh got it. That's it from my s. Thank you. Thank you. 37:23 37 minutes, 23 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question made by star and one on the touchstone telephone. The next question 37:31 37 minutes, 31 seconds comes from the line of part Kotak from plus 91 asset management. Please go ahead. Just one follow up on the bit pipeline. 37:38 37 minutes, 38 seconds I'm not sure if you mentioned about the same in your opening remarks. uh for uh I'm I'm sure I mean as we continue to 37:46 37 minutes, 46 seconds grow our revenue uh the author book needs to uh keep on growing at a healthier pace. So if you need uh if you 37:53 37 minutes, 53 seconds can give some uh color on the bid pipeline that would be helpful. 37:58 37 minutes, 58 seconds So uh we obviously you're right that we are continuously bidding for new contracts with a healthy aid margin of 13%. Uh we have already announced 38:08 38 minutes, 8 seconds yesterday that we were L1 in one of the contracts of 1200 odd crores. our share being 40% in that we have bid for more 38:16 38 minutes, 16 seconds than 2,000 crores of uh further orders in the recent past wherein the prices have not been open. So we cannot predict 38:23 38 minutes, 23 seconds what is going to happen but we are quite hopeful that we should get further new orders as well in the balance two months of this quarter and that is why we have 38:31 38 minutes, 31 seconds bumped up our revenue uh order book info guidance from 2,000 to 2,500 crores. Sure sir. Sure. Thanks. 38:39 38 minutes, 39 seconds Thank you. Thank you. Thank you. 38:42 38 minutes, 42 seconds As there are no further questions from the participants, I now hand the conference over to Mr. Atul Tantria for closing comments. Thank you and over to you sir. 38:50 38 minutes, 50 seconds Thank you everyone. I hope we have been able to suitably answer your queries. In case you have any further queries, you can please direct it to MUFG our 38:59 38 minutes, 59 seconds investor relation advisors or directly to us. Thank you and have a good day. Thank you. Thank you. 39:06 39 minutes, 6 seconds On behalf of GPT Infra projects limited that concludes this conference. Thank you for joining us and you now disconnect your lines. Thank you.