Kalpataru Projects International Limited — Q4 FY26

Kalpataru Projects International Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OJKUuAR7tKk Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to Kalpatru Projects International Limited Q4 FI26 earnings 0:07 7 seconds conference call hosted by Dam Capital Advisers Limited. 0:12 12 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:29 29 seconds your touchtone phone. Please note that this conference is being recorded. I now hand the conference mandra from dam capital. Thank you and over to you sir. 0:42 42 seconds Hi uh thanks Ikra. Uh good morning everyone and uh thanks for joining in early in the day. uh and uh warm welcome 0:49 49 seconds to the Q4 FI26 earnings call of Kalpatru projects international limited uh we have the management uh which is 0:57 57 seconds represented by Mr. Manish Manut who is the managing director and CEO Mr. 1:01 1 minute, 1 second Eskeripati who's the deputy managing director Mr. Sanjay Dalmia the executive director Mr. Amitar who's the director 1:09 1 minute, 9 seconds group strategy and Mr. Ram Patia the president finance and the CFO uh now at this point I'll hand over the floor to 1:17 1 minute, 17 seconds Mr. Monoth for his initial remarks post which uh we'll open the floor up for question and answer. Uh with that uh thank you and over to you sir. 1:26 1 minute, 26 seconds Thank you Kishan for setting up the call for us. Good morning everyone and thank you for joining us today. 1:35 1 minute, 35 seconds Let me begin with the performance for fourth quarter and full year FY26 and what it represents for Kalpatu projects international limited. 1:43 1 minute, 43 seconds We previously established clear targets for FY26 starting with revenue growth of 20 to 25% improv and consol PBT margins 1:51 1 minute, 51 seconds of 100 basis points a net working capital cycle under 100 days and ordering flows of 26,000 to 28,000 crores. We also committed to finalizing 2:00 2 minutes the vindia transaction and the indoor real estate project. Today I'm proud to report that we have fully delivered on each of these promises. 2:08 2 minutes, 8 seconds In FY26, our consol revenue grew by 22% Y to reach 27,143 crores while standalone revenue reported a growth of 23% Y. 2:19 2 minutes, 19 seconds I'm particularly encouraged by the high quality of this growth which was well diversified across our business portfolio in both domestic and 2:26 2 minutes, 26 seconds international markets. Except for the water business, all business units reported robust growth driven by strong execution. 2:34 2 minutes, 34 seconds From a profitability standpoint, our console PBT before exceptional items rose sharply by 62% Y to rupees 1,334 crores for FI26. 2:45 2 minutes, 45 seconds Consequently, the console PVT margin expanded by 120 basis points to 4.9% exceeding our guidance range of 4.5 to 4.75%. 2:54 2 minutes, 54 seconds Additionally, a standalone PBT margin excluding exceptional items and a one-off dividend income from VPL reached 3:00 3 minutes 5.9% in FY26 which is also ahead of annual guidance of 5.5%. 3:07 3 minutes, 7 seconds This step up in PBT margins reflects a strategic business mix, strict operating discipline and accelerating operating leverage as we gain size and scale. 3:17 3 minutes, 17 seconds I'm delighted to report that a console patch surged 82% Y crossing the,000 cr threshold to hit 1,31 crores. 3:26 3 minutes, 26 seconds This profitability translated into a 71% jump in console EPS to rupees 61 per share while standalone EPS expanded 24% to rupes 49 per share. 3:38 3 minutes, 38 seconds Our balance sheet highlights excellent financial health anchored by a strong cash position, sharp debt reduction and disciplined working capital management. 3:47 3 minutes, 47 seconds At the console level, we reduce net debt by over 50% to rupees 915 crores. 3:53 3 minutes, 53 seconds Optimize the working capital cycle to 75 days and reduce finance cost to sales by 80 basis points to just 1.8%. 4:01 4 minutes, 1 second Our consolant standalone net debt to to equity is at a multi-year historic low of.1x. 4:08 4 minutes, 8 seconds This operational efficiency fueled a massive 68% jump in operating cash flow reaching rupees 1,535 crores and rows improving to exceed 21%. 4:20 4 minutes, 20 seconds Similarly, we delivered robust performance at the standalone level when net fell by 32% y to 749 crores with working capital improving to 90 days and 4:29 4 minutes, 29 seconds finance cost to sales coming down 40 bits to 1.6%. 4:34 4 minutes, 34 seconds We managed to achieve this optimal leverage limits and cash position despite collection delays within the water business. 4:42 4 minutes, 42 seconds What makes this balance sheet performance truly remarkable is that we delivered it while continuing to invest nearly 900 crores in keex and pursued a strong topline growth of 22% in FY26. 4:55 4 minutes, 55 seconds This underscores our core commitment to discipline growth and strict capital management. Moving on to the ordering momentum. 5:03 5 minutes, 3 seconds Robust tender activity in the TND, BNF and Urban Intra verticals drive our drove our order bench past the 26,000 cr in FY26. 5:13 5 minutes, 13 seconds What stands out is that nearly half of these bookings came from large ticket orders exceeding 1,000 cr plus. 5:20 5 minutes, 20 seconds This clearly highlights a strategic shift towards high value large scale projects in our top performing business lines. 5:27 5 minutes, 27 seconds This strong momentum pushed our total order book to an all-time high of rupees 65,457 crores at the end of FI26, offering excellent diversity across businesses, clients and markets. 5:39 5 minutes, 39 seconds Furthermore, our growth pipeline remains robust across TND, BNF, oil and gas and urban business. 5:46 5 minutes, 46 seconds Since the closing of the fiscal year, we picked up new orders worth rupees 1,833 crores and additionally we have placed L1 in projects worth 3,200 crores. 5:58 5 minutes, 58 seconds Moving on to business level performance, our TNT business continues to capitalize on the multi- ticket super global capic cycle. Our order inflows reach closer to 6:07 6 minutes, 7 seconds 13,000 crores in FY26 with India accounting for nearly 35% of inflows and the remaining 65% spanned across Nordics, South America, Africa and the Middle East. 6:18 6 minutes, 18 seconds We have successfully wrapped up all ongoing projects in Brazil and took a full provision for our exposure in Brazilian subsidiaries in Q4. 6:27 6 minutes, 27 seconds We closed this year with a strong TN order book of rupes 28,572 crores. 6:33 6 minutes, 33 seconds For the full year, the TND business reported revenue growth of 25% y. We expect the TN business to remain on robust growth trajectory in FY27 and 6:42 6 minutes, 42 seconds beyond backed by healthy tender pipeline in India, Middle East, South America and Nordics. 6:48 6 minutes, 48 seconds Moving on to our buildings and factories business, the business delivered a strong 19% topline growth in FY26. 6:56 6 minutes, 56 seconds Our orders inflows in BNF business surged by roughly 40% to reach rupes 11,460 crores closing the year with order book of 18,295 crores. 7:08 7 minutes, 8 seconds A key include major wins in the residential space particularly through high value orders across south and NCIA regions. 7:15 7 minutes, 15 seconds What is highly encouraging is that nearly half of our BNF project portfolio has shifted towards design build projects. 7:23 7 minutes, 23 seconds Looking ahead to FI26, we expect this business to deliver continued robust growth as we optimize our portfolio mix. 7:30 7 minutes, 30 seconds The ordering pipeline remains vibrant, anchored by residential real estate and fortified by emerging opportunities in data centers, airports and industrial plants. 7:42 7 minutes, 42 seconds Turning to our oil and gas vertical, the business continues to perform exceptionally well, looking in on a phenomenal 55% Y revenue growth for FY26. 7:51 7 minutes, 51 seconds On the ground, execution across our Saudi projects remain steady and resilient despite ongoing Middle East and wides. 7:59 7 minutes, 59 seconds The pipeline ahead looks very promising. 8:01 8 minutes, 1 second We expect entering activity to accelerate sharply in FY27 led by large scale high value oil and gas infrastructure bids primarily in the Middle East market. 8:11 8 minutes, 11 seconds This business is rapidly scaling and is positioned to be a major engine of our growth moving forward. 8:16 8 minutes, 16 seconds In our water business, we achieved a revenue of rupees 2,112 crores as we maintained our focus on the execution and completion of gel given mission projects. 8:25 8 minutes, 25 seconds Our Q4 delivered strong results in terms of collection and we expect this positive receivable strength to continue going forward. 8:33 8 minutes, 33 seconds In line with a strategic road map to expand a global footprint, we are favorably placed in our initial for into the high potential overseas market in the water business. 8:43 8 minutes, 43 seconds Our adventure business recorded revenue growth of 49% Y in FY26 led by execution of metro rail projects. 8:50 8 minutes, 50 seconds During the year, we secured orders worth rupes 2,000 crores, further improving our presence in elevated underground metro rail projects. 8:58 8 minutes, 58 seconds We continue to strengthen our organizational capabilities in line with good visibility infrastructure sectors like elevated and underground metro rail tunneling works elevated roads etc. 9:08 9 minutes, 8 seconds We maintain a cautious and selective bidding strategy in our railway business. Our regular business reported a growth of 9% YI. 9:17 9 minutes, 17 seconds Beyond the numbers, I want to step back and talk briefly about what has structurally changed at KPI over the past 3 years and how it is centering the 9:26 9 minutes, 26 seconds quality, resilience and sustainability of our business. 9:31 9 minutes, 31 seconds First, we have sharpened our competitive position across EPC contracts. 9:36 9 minutes, 36 seconds Today's market demand partners who deliver speed and cost efficiency without compromising quality. We are rapidly becoming the partner of choice. 9:45 9 minutes, 45 seconds Uniquely capable of executing complex projects at scale. 9:49 9 minutes, 49 seconds This is driven by a rigorous project management framework that ensures productivity and predictability. 9:54 9 minutes, 54 seconds The proof is in our order book. A significant share of our recent recent wins come from repeat business with major customers. 10:03 10 minutes, 3 seconds Second, strategic capex has become our core execution enabler. 10:08 10 minutes, 8 seconds We invested nearly 3,000 crores over the past 5 years to upgrade our asset base. 10:14 10 minutes, 14 seconds This infrastructure compresses cycle times, elevates quality and allows us to secure massive multi-geography contracts with high confidence. 10:22 10 minutes, 22 seconds This capacitate strategy establishes KPI as a long-term strategic partner and accelerates our upcoming project pipeline. 10:31 10 minutes, 31 seconds Third, we are aggressively scaling our internal capabilities. 10:35 10 minutes, 35 seconds Over the last few years, we expanded our specialized design, engineering, and project execution teams. 10:41 10 minutes, 41 seconds This intellectual capital is a strategic wedge. 10:45 10 minutes, 45 seconds It creates a distinct competitive advantage embedding us in high barrier large scale projects where few can compete. 10:53 10 minutes, 53 seconds This capability drives both scale and global expansion. 10:57 10 minutes, 57 seconds By executing complex multi geography EPC mandates, we validate our credentials with the world's most demanding customers. 11:04 11 minutes, 4 seconds Our recent breakthroughs in international oil and gas, airports, underground metros, and utility scale solar combined with major design build 11:12 11 minutes, 12 seconds BNF winds provide clear evidence of an organization built for the future. 11:18 11 minutes, 18 seconds Collectively, this strategy enables enhance our geographic reach and customer diversification, improving revenue visibility and support a more resilient growth trajectory. 11:29 11 minutes, 29 seconds To conclude, a constructive demand environment and excel excellent visibility reinforce our confidence for FI27. 11:36 11 minutes, 36 seconds We we expect folure order wins to exceed 30,000 crores in FI27. 11:42 11 minutes, 42 seconds Further, we are guiding for around 15% plus topline growth coupled with robust profitability. 11:48 11 minutes, 48 seconds This bottom line performance will be driven by our 75 basis point expansion in our console PBD margins. 11:55 11 minutes, 55 seconds Above all, our core focus remains unchanged. We'll back this growth with unwavering operational rigor and capital discipline. 12:03 12 minutes, 3 seconds Our biggest challenges continue to be managing the issues coming from the geopolitical scenarios, ensuring minimal disruption in labor 12:10 12 minutes, 10 seconds labor availability and managing cost structure in the current environment. With that we can open the call for Q&A. 12:18 12 minutes, 18 seconds Thank you. 12:21 12 minutes, 21 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 12:28 12 minutes, 28 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 12:35 12 minutes, 35 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 12:44 12 minutes, 44 seconds wait for a moment while the question Q assembles. 12:57 12 minutes, 57 seconds The first question is from the line of Ashish Sha from HTFC mutual fund. Please go ahead. 13:03 13 minutes, 3 seconds Yeah, thank you for the opportunity. Uh sir, congrats on a wonderful performance. Uh my first question is uh 13:12 13 minutes, 12 seconds on on how does the bid pipeline look today. You did just say that you're looking at 30,000 cr of inflow but if you could just give us more color in 13:20 13 minutes, 20 seconds terms of what is a bid pipeline which segments are expected to drive this inflow and particularly you mentioned about large prospects in oil and gas. A little more color on that will help. 13:30 13 minutes, 30 seconds Thank you. 13:31 13 minutes, 31 seconds Sure. So Ashish uh as I mentioned earlier we continue to stay bullish on on three four businesses in the current 13:39 13 minutes, 39 seconds year. Uh TND continues to be as healthy as it was in the previous year with more than one lakh of bidding happenings in the domestic sector domestic TND and 13:48 13 minutes, 48 seconds similar amount if not higher in the international business although in the next 6 to9 months. On the BNF side we continue to stay bullish on residential 13:56 13 minutes, 56 seconds and commercial and some geographies. a lot of airport projects coming up uh industrial projects where we are now qualified for large scale projects as 14:04 14 minutes, 4 seconds well as data centers where we're currently working on a few of them already. 14:08 14 minutes, 8 seconds On the oil and gas front we seeing lot of traction coming from Middle East whether it is Saudi, whether it is Abu Dhabi, whether it is Qatar. Um yes it 14:17 14 minutes, 17 seconds might take some time for this you know traction to get converted to bids and to orders but at least the traction is already visible while we speak. So 14:26 14 minutes, 26 seconds that's also an area which we believe getting into Q3 Q4 could be very very healthy in terms of order book even on the urban infrastructure side now we are 14:34 14 minutes, 34 seconds seeing a lot of tenders coming whether it's for underground metro or elevated metro both on domestic and international so on all the four businesses I think we 14:43 14 minutes, 43 seconds continue to stay positive uh oil and gas might move at a much faster speed in Q3 Q4 whereas TND BNF as well as urban 14:51 14 minutes, 51 seconds would start right from now we will stay cautious in the water business in the domestic Frank but on the international front that business also shows some good 14:59 14 minutes, 59 seconds visibility and we already placed L1 in a small order while we speak uh as mentioned earlier on the railway business we continue to be very watchful 15:08 15 minutes, 8 seconds and I'm not very bullish on in terms of prospects of growth there but at least four businesses out of our six we very very positive and that will help us 15:15 15 minutes, 15 seconds target 30,000 plus crows of order info in the next year in the current year. I know. 15:22 15 minutes, 22 seconds Sure, sure. So, I know it's it's a little too early, but if you can just split this 30,000 cr into what would you look forward to in terms of let's say 15:30 15 minutes, 30 seconds TND, BNF and uh oil and gas uh and and maybe urban infra any any broad thought we have on on how does this flow look? 15:39 15 minutes, 39 seconds So my own view and and as you rightly said it's too early is at least one third one third of this would be CND and BNF uh minimum right and the balanced 15:48 15 minutes, 48 seconds one/3 would be taken by projects which comes from either oil and gas or urban infra or even water international but still at least in the next from a six 15:56 15 minutes, 56 seconds month perspective it's T&D and BNF which are going to drive uh significant growth in order book today when you look at it 16:03 16 minutes, 3 seconds we we including L1 we have visibility of around 5,000 crores we declared 1,800 crores yesterday plus L1 in around 3,200. This entire 5,000 cr only in TND and BNF. 16:15 16 minutes, 15 seconds So the first 6 months significant inflow coming from TND and BNF. The last 6 months you'll see significant inflows coming from oil and gas and 16:24 16 minutes, 24 seconds right. So second question is on u whether there are any margin pressures uh at this point of time. Obviously 16:32 16 minutes, 32 seconds there's been a huge uh surge in the commodity prices. So uh how how does the situation look for us and and what kind 16:40 16 minutes, 40 seconds of mitigation measures we have including any passroughs etc in our contracts. 16:46 16 minutes, 46 seconds Sure Ashish our order book today is is 50% fixed and 50% variable. Um so nearly 50% it could be 49 51 in that range. Um 16:55 16 minutes, 55 seconds from a you know margin perspective if you look at specific commodities you know on aluminium zinc copper we 90% 17:03 17 minutes, 3 seconds plus honor exposures. So we do not see significant impact coming on that at least on the current order book on at least things like aluminium, zinc and 17:11 17 minutes, 11 seconds copper. Uh steel we have seen some expansion in prices come through in February March but they've again stabilized in April May we've not seen 17:19 17 minutes, 19 seconds much happening in April May. So to that extent steel whatever you know increases come in we've budgeted that we've also budgeted slightly more coming into Q2 Q3 17:28 17 minutes, 28 seconds and that's already inbuilt when we have given our 75 basis uh points guidance and margins. One of our biggest 17:35 17 minutes, 35 seconds challenges could be the diesel cost for which also we have budgeted huge amount or significant amount in a current P&L but that's something we will wait and 17:43 17 minutes, 43 seconds watch because that's something which number could be X could be 2X and we would come back to the streets hopefully Q1 Q2 uh would it have a very big dent 17:53 17 minutes, 53 seconds dent on the margins maybe not because diesel as a percentage of the overall revenue would be minimal but that's a cost we need to be uh watching for but 18:01 18 minutes, 1 second otherwise on commodities we nearly hedged even on FX X we are hedged at more than 80% of our exposure. So even FX we are at 85% actually of our 18:09 18 minutes, 9 seconds exposure. So I do not see volatility hitting us in a big way except maybe diesel and petrol prices and except and 18:16 18 minutes, 16 seconds some supply chain disruptions if they happen in the Middle East area. 18:20 18 minutes, 20 seconds Sure. Last quick one from me. So the TND business revenue was uh just about 1% of 18:27 18 minutes, 27 seconds Y. For the year it was 25 but for the quarter it just seems 1%. So what could be the reason for this? 18:35 18 minutes, 35 seconds I think the primary reason was the disruptions in March which happened in Middle East which picked up again in April in some form. So a lot of material 18:42 18 minutes, 42 seconds which was ready was we were not able to supply because of the supply chain disruptions and those 15 to 20 days of problems. So primarily reason for TND to 18:50 18 minutes, 50 seconds be low is is driven by two aspects. One our partial business reduced closer to zero which was at a reasonable number previous year Q4. And second TND 18:58 18 minutes, 58 seconds international march impact because of the geopolitical scenario and as we speak uh uh some of the disruption continues right that's what 19:06 19 minutes, 6 seconds that's what you're saying as we speak while work continues at the site uh on all projects work has not stopped in majority of our projects but supply chain disruption still continue. 19:19 19 minutes, 19 seconds All right sir thank you. 19:24 19 minutes, 24 seconds Thank you. Next question is from the line of Amit Anwani from PL Capital. Please go ahead. 19:33 19 minutes, 33 seconds Hi. So thanks for taking my question. So first question uh as I can see uh uh the order inflow guidance which I have given 19:41 19 minutes, 41 seconds and wanted to understand especially for the TND and since we are expecting very robust performance I think the order 19:49 19 minutes, 49 seconds inflow which I can see for full year was roughly about 13,000 and last year it was about 14,400 so definitely there's a 19:56 19 minutes, 56 seconds decline and even if I take uh 45 to 50% of the 30 31,000 which are expecting it 20:04 20 minutes, 4 seconds still will be about 14,000. So there's no meaningful growth from uh financial years and probably the expectation this 20:12 20 minutes, 12 seconds quarter. Is that the correct understanding and what exactly we are factoring in in terms of international TND, domestic T&D some trends if you 20:20 20 minutes, 20 seconds would like to highlight amid the current geopolitics because uh that is still not solved and we are also expecting probably the domestic government 20:28 20 minutes, 28 seconds finances they might have to also rethink the budgets across various sectors. So your thoughts on that uh in terms of 20:36 20 minutes, 36 seconds pipeline for you and uh overall scenario. 20:40 20 minutes, 40 seconds Sure. So Amit yes you're right in terms of absolute inflow uh you know FI25 TND was higher than FI26 20:49 20 minutes, 49 seconds we were L1 in a couple of large projects which got shifted to FI27 and which you'll see coming in in the month of April May itself. Uh now on a totality 20:59 20 minutes, 59 seconds basis do I expect this number to be beyond 15,000 crores? In all likelihood we should be at levels of 15,000 crores 21:06 21 minutes, 6 seconds max as far as TND order info is concerned in the next year. As I mentioned earlier Romesh for us it's more more important to work with 21:13 21 minutes, 13 seconds selective clients high margin projects and large scale projects. It's not only about topline growth because for us uh 21:20 21 minutes, 20 seconds capital allocation resource allocation and making sure that what we commit we deliver is equally important. So we believe that even at a growth of 15,000 21:29 21 minutes, 29 seconds crores you know if we get that in TND which is which is on the upper side my view could be more in the range of 13 14,000 crores uh would be a very good 21:37 21 minutes, 37 seconds number because we already have auto visibility today which is more than 2 and a half years in the TND business. So if you look at the business in terms of revenue versus auto visibility we have a 21:45 21 minutes, 45 seconds 2 and a half year autobook visibility even today. So we will continue to focus on not as much on volume but as much on 21:53 21 minutes, 53 seconds strategic projects large projects design build projects and solar EPC projects where margins could be slightly better 22:01 22 minutes, 1 second than what we are getting across normal projects and that's our philosophy. 22:06 22 minutes, 6 seconds So in terms of market the market continues to be bullish in terms of our capacity at the plant I think we have 22:13 22 minutes, 13 seconds capacity of more than two lakh tons at our Rayur and Gandhi twoak 25,000 tons. 22:17 22 minutes, 17 seconds So that's not a challenge. But yes, a 15,000 go is a good number because remember all projects now have come with a delivery which is more 2 and a half to 22:25 22 minutes, 25 seconds 3 years and it's not only about getting orders. It's also about delivering that on time with that labor scarcity which continues to be a big challenge. So 22:34 22 minutes, 34 seconds you're right our our order inflow on TND might not grow at 20% which which is what our business is growing or at 15% which is where the business is growing 22:41 22 minutes, 41 seconds but profitability improvement and return ratios improvement would be much higher than what we have seen and that's visible even in the last two years 22:50 22 minutes, 50 seconds right the uh some color on on the segmental margins uh uh international 22:56 22 minutes, 56 seconds TND domestic TND and all how they have done uh for this financial year and what are the expectations forward 23:04 23 minutes, 4 seconds And also for your PBT improvement uh if I got it correct uh 70 bits which we are 23:10 23 minutes, 10 seconds expecting this year is it going to come from the segmental margin improvement or the overall balance sheet structure and 23:19 23 minutes, 19 seconds the interest savings which might have that is driving the PBT. So some color on these two aspects. 23:25 23 minutes, 25 seconds Sure. So uh you know I do not have exactly segment wise margins but I can tell you our transmission and BNF business transmission BNF and oil and 23:34 23 minutes, 34 seconds gas all three businesses at a bit level are double digit plus they are at good levels of double digits you know 10 11% 23:41 23 minutes, 41 seconds plus uh our urban infra water and railways business are at second digit when it comes to a buildup uh and I 23:49 23 minutes, 49 seconds think this trend would continue getting into next year also all three businesses which is TND BNF and oil and gas will continue to be a double digit. I don't 23:57 23 minutes, 57 seconds see them coming down. As far as EITA margins are concerned u as far as margin announcement is concerned, I think it's going to be a mix of uh uh you know 24:06 24 minutes, 6 seconds margins coming from the business segments as well as some balance sheet improvements because as you rightly said our debt levels are low. So it's going to be a combination of both. We not deep 24:15 24 minutes, 15 seconds dived into exact details of seeing that how much of the 75 basis points would come from where but it's going to be combination of both driven primarily by 24:23 24 minutes, 23 seconds improvement in margin on the business units. Understood sir. Thank you so much sir. All the best. 24:32 24 minutes, 32 seconds Thank you. Next question is from the Summit Keshore from Access Capital. Please go ahead. 24:40 24 minutes, 40 seconds Good morning. Um uh my compliments on your strong PBT margin uh performance and the uh extremely strong operating 24:49 24 minutes, 49 seconds cash flow performance. Uh the question is that uh the capex uh in the cash flow 24:56 24 minutes, 56 seconds uh seems to have gone up meaningfully year on year. Um and uh that is uh reducing the extent uh of flow through 25:04 25 minutes, 4 seconds to the free cash flow. Uh so uh basically there is 9 billion rupees plus uh uh you know of of capex uh versus uh 25:13 25 minutes, 13 seconds 6.6 billion rupees last year. So what is that this capex going into uh why the sharp increase and what's the outlook 25:20 25 minutes, 20 seconds for the next year? That's my first question. 25:24 25 minutes, 24 seconds Sure. Summit uh you know last three four years um postcoid at KPL we took a call that there is good visibility on growth 25:32 25 minutes, 32 seconds and we as a company believe that to take care of that growth we need to put in investments whether it is on uh aluminium shuttering whether it is on 25:41 25 minutes, 41 seconds equipments at the site ts cranes whether it is on plant modernization and whether it's on international front which includes Saudi and some of the other 25:48 25 minutes, 48 seconds geographies uh we continue to be on track on that and all of that is coming out of our free cash flows Second, what 25:55 25 minutes, 55 seconds is it going forward? I believe that again next year we might be incurring KEX more in the range of 800 cr plus. 26:01 26 minutes, 1 second That is what we have budgeted and which is into a right mix of BNF business, TND as well as international as well as some modernization at the 26:10 26 minutes, 10 seconds plant. We might be further expanding our plan capacity and for which we'll come back to you by the end of Q2. So we believe that in the current year also we 26:17 26 minutes, 17 seconds should be doing capex of 800 plus crores. uh we as an organization are a firm believer that in the EPC business having your own capex is a big advantage 26:26 26 minutes, 26 seconds at least on large scale projects because these are projects where you know you uh start all everything at the same time so for example one of those large projects 26:34 26 minutes, 34 seconds which we are doing for a big client in in southern India 15 towers together we were able to start across right and 26:42 26 minutes, 42 seconds that's something which we built the pality over the last few years so we will continue to put in keex at least for the next few is but all out of our 26:51 26 minutes, 51 seconds internal cash flows. Uh we also have some events of free cash flows coming in next year whether it is through um a few 26:59 26 minutes, 59 seconds more divestments which are left which might happen either next year or year after that or whether it is through some strategic uh investment coming into our 27:08 27 minutes, 8 seconds our Swedish subsidiary in whatever form it comes. So we expect some more cash flows to come out of our non-core businesses also which will also help us 27:16 27 minutes, 16 seconds further strengthen the balance sheet in every form. 27:20 27 minutes, 20 seconds My second question uh you know uh is you have been talking about that you're reasonably wellfed on uh uh the uh raw 27:30 27 minutes, 30 seconds material commodity side. The question is that look copper prices started rising uh meaningfully to three uh onwards. Uh 27:38 27 minutes, 38 seconds uh uh the most liquid contract uh on the uh LME is maybe the 9month contract. So 27:46 27 minutes, 46 seconds will the rollover of these hedges you know if uh uh the issue on commodity prices continues you know for three 27:54 27 minutes, 54 seconds quarters let us say will that create some pain uh in terms of uh uh the uh commodity hit on margins. 28:04 28 minutes, 4 seconds So summit just so to be very clear our copper exposure is extremely small it is so minimal because you know copper isn't required aluminium aluminium aluminium 28:13 28 minutes, 13 seconds is there okay so aluminium businesses summit we have hedge which go up to even two years we have significant hedge which is two 28:21 28 minutes, 21 seconds years and above there's enough liquidity for that in the international market and today if you ask me you know we are 28:28 28 minutes, 28 seconds hedged on that 90% out of which half of them is hedged for beyond 18 months so from a 2 to three perspective you ask me on alumnium we are adequately hedged we 28:37 28 minutes, 37 seconds don't need to even worry on the rollover risk first second even during rollover if you have hedged it at the right price it's only about the differential in 28:45 28 minutes, 45 seconds terms of premium which is very very sign small often than not so that's not such a big issue so if would that rollover 28:52 28 minutes, 52 seconds create impact on margins my my view is closer to zero so those contracts for two years are 28:59 28 minutes, 59 seconds liquid uh uh you know on the other side the one who's taking position and people are willing to give or on the international market. Yes, they are available. 29:10 29 minutes, 10 seconds Excellent. Uh uh just the last followup question uh you know uh good to hear the 70 basis point uh guidance on increase 29:18 29 minutes, 18 seconds in PBG margin that's at the consolidated level or should we read that at the standalone level? 29:24 29 minutes, 24 seconds So I think on the console level we are targeting improvement of closer to 100 75 to 100 basis points. On a standalone level, it will be more in the range of 29:32 29 minutes, 32 seconds 75 business points. Consult level would be slightly better than 75 business points. 29:37 29 minutes, 37 seconds Excellent. And uh uh finally the the 40% Q increase in the water segment in terms of revenue growth was good to see. Now 29:45 29 minutes, 45 seconds what is the situation in terms of the total uh uh sort of um uh cash flows money that is uh uh sort of still uh 29:53 29 minutes, 53 seconds showing up in the working capital uh as a receivable and uh you know just your brief comments on how the situation on 30:00 30 minutes domestic drinking water uh as a percentage of your order book and growth looks like uh in FI27. Thank you. 30:08 30 minutes, 8 seconds So on the water business if you look at the previous year we collected more than 1,800 crores but we invested around 2500 crores in that business because we 30:16 30 minutes, 16 seconds continue to focus on delivery. So even in the previous year we had a negative uh cash flow of closer to 700 crores in 30:23 30 minutes, 23 seconds that business. Uh in April we've collected more than 100 crores and in May also things look like going fine and even collections from all states have 30:31 30 minutes, 31 seconds started including UP and Jan. Jan remains slightly slow while we speak today. Our total outstanding receivables on the business is closer to 1,600 odd 30:40 30 minutes, 40 seconds crores and we're pretty confident that majority of this should get recovered in the first two quarters itself. That's a feeling we're getting from the ground 30:47 30 minutes, 47 seconds level. Uh we continue to focus on execution of our water projects and we believe that majority of our project 30:54 30 minutes, 54 seconds water projects except maybe five or six would all get completed physically in the current year and get into the O andM phase. 31:02 31 minutes, 2 seconds So uh we continue to be hopeful in getting this money and we're working hard to make sure this happens. Previous year was much better than the year before that. So if you look at the year 31:10 31 minutes, 10 seconds before that our collections was maybe less than 500 crores. Previous year 1 1800 crores. Current year expecting 2,500 crores plus and I'm reasonably 31:19 31 minutes, 19 seconds sure we should be able to get that collections. 31:22 31 minutes, 22 seconds I think wonderful FI26. All the best for FI27. Thank you. Thank you S. 31:30 31 minutes, 30 seconds Thank you. Next question is from the line of Paradikshit Kpal from HTSU securities. Please go ahead. 31:39 31 minutes, 39 seconds Yes sir. Hi, congratulations on a great quarter. So my first question is we have done substantial improvement in our 31:46 31 minutes, 46 seconds balance sheet with both ends and net debt coming down significantly. So are these numbers sustainable and especially 31:54 31 minutes, 54 seconds on the debt side uh when do you expect that you'll be net cash? 32:00 32 minutes So Parishit uh as far as the current debt levels are concerned you know based on where we are clearly they look sustainable but with that growth plan 32:08 32 minutes, 8 seconds for the next year and with that capex plan debt would go up in proportion to the growth plan excluding that oneoff inflows which we might get in the next 32:17 32 minutes, 17 seconds year also but for business as usual I expect that to grow up in relation to the business growth not significantly 32:23 32 minutes, 23 seconds higher than that one uh as far as free cash flows are concerned at operation level we are doing very well just that given that our capex given the kind of 32:32 32 minutes, 32 seconds opportunities we are focused on investing in the business and that's why out of our operational cash flows a lot of cash flows going into cipex 32:40 32 minutes, 40 seconds but while we continue doing that we are very clear that rose from here will continue to go up so as far as rose is concerned you should see that moving up 32:47 32 minutes, 47 seconds every year whatever 100 plus basis points even in the current year so rose should go up uh debt would go up in proportion to the growth not significant 32:56 32 minutes, 56 seconds but yes uh small amounts capex will continue to be at 800 plus crores as I had said earlier uh but and networking 33:04 33 minutes, 4 seconds capital days we definitely believe that we have reached levels where if we maintain this it it would be very good for the business. 33:12 33 minutes, 12 seconds Okay. 33:13 33 minutes, 13 seconds Second question is what are the steps or what are the so how are you positioning ourselves to the entire renewables capex 33:21 33 minutes, 21 seconds both in domestic and international market and even on the data center side. 33:25 33 minutes, 25 seconds So beyond the TND so what are we planning to do to capture the bigger opportunity from the oning side 33:35 33 minutes, 35 seconds so on the renewable side our focus is a lot more in the international markets primarily the Middle East markets with the large solar projects which we are 33:43 33 minutes, 43 seconds looking at we already favorably placed in one large project which I'm hoping to conclude in May June itself uh on the 33:50 33 minutes, 50 seconds domestic front we we're not doing anything significant on renewable and that's not also on our on our radar are as of now. Uh as far as TND projects are 33:59 33 minutes, 59 seconds concerned, as I said earlier, uh we continue to stay bullish uh with growth from majority of our large clients both in domestic and international and uh 34:08 34 minutes, 8 seconds that's one of our enabler for improving margins and return ratios going forward. 34:13 34 minutes, 13 seconds Okay. So what so this one large project you're saying is it the one which you included in the L1 of 3,000 or it is beyond that? 34:21 34 minutes, 21 seconds No, no, it's included in the L1 of 3,000 3,000. It's included in that. Okay. How big is that, sir? 34:28 34 minutes, 28 seconds That's closer to 2 or 1,000 crores in the range of 2,000 cr. And what is the scope of work here? 34:36 34 minutes, 36 seconds It's a solar project in the international market. I might not be able to share more with you because it's still at the stage where we have not signed the contract. But hopefully the 34:44 34 minutes, 44 seconds moment we sign we'll be able to share a lot more. 34:47 34 minutes, 47 seconds Okay. And the other question is I mean whilst we have done strong work on the balance sheet and and WC but one thing 34:54 34 minutes, 54 seconds which keeps uh somehow uh the stock or maybe the concerns around the pledge. So 35:01 35 minutes, 1 second now the promoters the other entities already listed and the expectation was that over a period of time the pledge and the KPI share will come down to zero uh because two are different entities. 35:12 35 minutes, 12 seconds These two are different entities. So, so what are the steps and so how are you thinking how the management and the promoters are thinking uh that KPR will 35:19 35 minutes, 19 seconds at some point of time uh become a pledge free so Parish uh I'm not sure we have ever said that you know uh the intent is to 35:28 35 minutes, 28 seconds become pledge free you know I've not never said that but we have always said that pledge will continue to come down that's what is the comfort given by promoters and we've seen that over the 35:37 35 minutes, 37 seconds last six quarters every quarter pledge has come down I think the promoters from whatever discussion I've had with them continue to be on the track of bringing 35:44 35 minutes, 44 seconds down pledge. Uh we've never said that it would be zero or I have never heard that from from the promoters ever. But you see that traction going down that's one 35:53 35 minutes, 53 seconds side. Second, I think it's also important to understand that you know on the pledge the borrowing is very minimal. You know if you look at the 36:01 36 minutes, 1 second borrowing on the pledge it's it's like 1 is to four you know the value versus or maybe 1/3 less than 1/3 or 25% is what 36:08 36 minutes, 8 seconds they borrow. So it isn't a risk. We would raise discuss this again with promoters and our view is that it should only keep on coming down over period of 36:16 36 minutes, 16 seconds time and quarter on quarter there should be healthy moment on that. 36:21 36 minutes, 21 seconds Okay. And this is the last question on the domestic TND side. How are you seeing both from the state side and even on the HDC pipeline? If you can help us 36:29 36 minutes, 29 seconds understand what CSU KEX likely in this year and what is HDC pipeline looking for this you know next year and any state transmission projects where you 36:37 36 minutes, 37 seconds see it potentially can add to the order info for you. 36:41 36 minutes, 41 seconds So today our significant focus continues to be more on um power grid and a few large uh private 36:49 36 minutes, 49 seconds sector clients and that would continue to be a focus at least for the current year. We do not see a lot of traction coming from state electricity boards as 36:57 36 minutes, 57 seconds of now. But that would change every 3 four years. You see a few years where there's a lot of traction which comes from there. Uh so for the current year 37:05 37 minutes, 5 seconds focus primary continues to be you know projects coming from power grid and a few private sector players. As far as the HBDC traction is concerned, we see a 37:14 37 minutes, 14 seconds couple of large projects coming out in Q2, Q Q2 itself, maybe later part of Q1 and Q2 and that's something which I'm 37:22 37 minutes, 22 seconds sure will focus both on transmission and subscription side. U and and let's see who wins and then accordingly we will 37:29 37 minutes, 29 seconds have an EPC order coming from either private sector or from the PSU side. But a focus continues to be more on PSUs and 37:37 37 minutes, 37 seconds private and not as much on SEBS in the current year. 37:40 37 minutes, 40 seconds in terms of project cost how much uh what will be the size of the HD these two HVDCs so I think 37:48 37 minutes, 48 seconds I do not have the exact numbers but when I've seen it 30 35,000 crores minimum including the the transformers and the 37:55 37 minutes, 55 seconds reactors maybe in the range of 30 35,000 crores but this I do not have the exact updated numbers I remember the numbers from a few quarters ago 38:03 38 minutes, 3 seconds so each of them will be 30 to 35,000 crores no total HBDC both put together would be in the range of 30 35,000 okay sure sir Thank you. Those are questions. 38:13 38 minutes, 13 seconds Thank you. 38:17 38 minutes, 17 seconds Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star and one. We 38:26 38 minutes, 26 seconds will take a next question from the line of web hosa from JM Financial. Please go ahead. 38:33 38 minutes, 33 seconds Yeah. earlier we're looking for a growth of close to 20 odd% in terms of revenue uh for FI27. 38:40 38 minutes, 40 seconds So this moderation in the number would largely be due to the middlely challenges we are seeing especially in the first half of the year. 38:50 38 minutes, 50 seconds I think our growth projections are more in the range of 15% for the current year and we could revisit this numbers at the end of Q2 because as we stand Q1 you 39:00 39 minutes know we have disruptions on the global environment we have disruptions on labor availability thanks to the elections uh so while we stand where we stand Q1 Q2 39:08 39 minutes, 8 seconds are going to be difficult quarters but so our guidance is more in the range of 15% and 20% to start with 39:15 39 minutes, 15 seconds uh and this comes across various businesses our BNF business we expect that to grow at 20% plus our TND 39:24 39 minutes, 24 seconds business also we expect that to grow at 20% plus u and our oil and gas business also uh the businesses which would not 39:32 39 minutes, 32 seconds grow would continue to be mainly water and and railways uh but clear visibility on our core businesses to be growing at 39:39 39 minutes, 39 seconds 20% plus while we speak more at an annualized basis but not on a quarterly basis because as I said quarterly Q1 Q2 39:46 39 minutes, 46 seconds could be challenging times for reasons completely beyond our control and as I said earlier you know our biggest challenges are only this geopolitical 39:54 39 minutes, 54 seconds managing labor in this this first 3 to 6 months given the geopolitical and and supply chain disruptions pretty confident we'll be able to manage 40:02 40 minutes, 2 seconds that on an annualized basis but Q1 Q2 would be challenging times from a growth perspective not necessarily from margin perspective 40:11 40 minutes, 11 seconds okay okay secondly on the origin business so we had submitted few bids we had started submitting bids in the Middle East region So any progress over there? 40:22 40 minutes, 22 seconds So yes, we've submitted a few bids in Q4. We continue to submit bids now also. 40:27 40 minutes, 27 seconds Uh technically we qualified in majority if not all the businesses. A few prize bids have opened where discussions have continued but are we L1 in any of them. 40:35 40 minutes, 35 seconds If you are asking me that question not as of now but I would also like to highlight a lot of the clients do not necessarily you 40:43 40 minutes, 43 seconds know award project based on L1 basis. So it's more an ability to deliver in a defined time frame and your commitment 40:49 40 minutes, 49 seconds and your historical performance. So you know you could you could be L3 and still win a project. But as of today is there anything included in L1 or oil and gas? 40:58 40 minutes, 58 seconds The answer is no. 41:01 41 minutes, 1 second Okay. And lastly what would be our water order backlog as of uh March the JM portion. 41:09 41 minutes, 9 seconds So if you look at a water water backlog it's closer to 7,900 crores out of which around 2,100 crores is O andM. So if you 41:18 41 minutes, 18 seconds remove that you know the water backlog is around 5,800 crores out of which significant portion would be JGM. More 41:25 41 minutes, 25 seconds than 75% of this would be JJM uh which we expect majority of them to get completed in the current year itself except for a couple of projects of 41:33 41 minutes, 33 seconds Punjab everything should get completed in the current year itself. 41:37 41 minutes, 37 seconds Okay. And you expect that 1 16 total receivables we have right now to be cleared by September. 41:44 41 minutes, 44 seconds Yes, we we continue to stay optimistic on this. So we would like it to get cleared in June itself. But the indication from the ground levels and 41:52 41 minutes, 52 seconds you seen this traction in February, March and April also the indication from the ground level is next four five months entire thing should get cleared. 42:00 42 minutes Okay. Thank you. So those are my question. 42:07 42 minutes, 7 seconds Thank you. Next question is from the line of Mohit from ICISA securities. Please go ahead. 42:15 42 minutes, 15 seconds Yeah. Hi. Uh good morning and congratulations on a very good set of numbers. My first question can you help us with the lower departure at 42:23 42 minutes, 23 seconds consolidated level versus standalone in the quarter? Is it there by higher probabilities? 42:30 42 minutes, 30 seconds So Mo I think the impact as far as quarter is concerned is because of that external loss which you've taken at a blazing level one second you know you 42:39 42 minutes, 39 seconds had road assets which were contributing to IITa last year which not now which do not exist now so it's a combination of both road assets we have dvested and 42:47 42 minutes, 47 seconds surrendered and you know so we hardly we only have one small road asset now BB and second is the partial losses which have come through in Q4 which we have 42:55 42 minutes, 55 seconds taken so it's a combination of both of that which has impacted a bit time in Q4 Can you please quantify the provisioning number sir? Possible. 43:04 43 minutes, 4 seconds So at a parcel level we have done a provision of closer to 515 crores on a standalone 43:12 43 minutes, 12 seconds number. So 515 crores our entire investment in any form in parcel has been provided for. Today the investment 43:18 43 minutes, 18 seconds stands are closer to zero in our books and the entire thing is happening in Q4 on a standalone level. On a console level there's an impact of closer to 200 43:27 43 minutes, 27 seconds crores which have come in Q4. We had taken already around 330 till Q9. So maybe around 175 180 crores which have 43:33 43 minutes, 33 seconds come in Q4. So that's the impact on IITa on a standalone and consol basis. When when you look at the Brazil numbers on 43:42 43 minutes, 42 seconds road assets I don't have the exact numbers but clearly that ITA was there. 43:45 43 minutes, 45 seconds So if you look at the IITA from IITA perspective uh my team tells me there's impact of closer to 100 crores on on ata 43:53 43 minutes, 53 seconds level but I'll have to just reverify the numbers. 43:57 43 minutes, 57 seconds Understood. Now second question oil and gas uh the pipeline are tending activity in the Middle East getting postponed as 44:05 44 minutes, 5 seconds you speak or are you seeing the dates are being adhered to given the volatility in the region? 44:13 44 minutes, 13 seconds So uh mo uh we have start we have seen discussions have already started tender documents have started coming out 44:20 44 minutes, 20 seconds clients have started uh conversations with us in terms of what is our capacity how much work can we take what is our capability all of that those things have 44:29 44 minutes, 29 seconds started we've also seen some tender documents come out some had come out in March which got deferred uh are these tenders due immediately maybe a few in 44:38 44 minutes, 38 seconds June maybe a few after that but discussions across Ross every geography whether it is Saudi whether it is Edna 44:46 44 minutes, 46 seconds Abu Dhabi whether it is Kued whether it is Qatar have started and when I say discussions are serious interactions on our ability and competency to de deliver 44:56 44 minutes, 56 seconds on large scale projects and our ability to put in capix so my own belief is as I said earlier Q1 Q2 would be where all 45:04 45 minutes, 4 seconds those discussions and tendering should happen and Q3 onwards we should start seeing some wins coming in. 45:10 45 minutes, 10 seconds Understood. My last questions on the outlook of domestic TND of course you spoke about the near-term near-term opportunity but how do you think about 45:19 45 minutes, 19 seconds the medium-term outlook for next two to three years do you think that opportunity is peing in the domestic market and our ordering flow will be maybe picked out. 45:30 45 minutes, 30 seconds So Mo in terms of opportunity I think the opportunity continues to look extremely good driven by everything driven by the connectiv grid 45:38 45 minutes, 38 seconds connectivity to solar driven by the northeastern expansion driven by HVDC driven by uh thermal coming in for which 45:47 45 minutes, 47 seconds further requirement of transmission network is required and given by the cipex plans of power grid right given with all of that I think opportunity 45:55 45 minutes, 55 seconds looks very good as I said earlier uh for us the opportunity is driven by making Sure we focus on large scale projects 46:02 46 minutes, 2 seconds you know where where our competency and our design ability comes in. uh I think opportunity from a next 2 three year 46:10 46 minutes, 10 seconds perspective looks very very attractive on this as I said earlier uh overall TND will be happy to have an orders in the 46:17 46 minutes, 17 seconds range of 14 15,000 crores we could even do more than that including solar orders but our focus is more on improving return ratio and not necessarily because 46:26 46 minutes, 26 seconds we have good visibility on BNF we have good visibility on oil and gas and at the end of the day you know as I said earlier it's all delivery in three years 46:34 46 minutes, 34 seconds so you need to be cautious on not building an auto book which you can't deliver in that time frame. 46:40 46 minutes, 40 seconds Understood sir. Thank you and best of luck sir. Thank you. 46:46 46 minutes, 46 seconds Thank you. Next question is from the line of Ashwani Sharma from MK Global Financial Services Limited. Please go ahead. 46:55 46 minutes, 55 seconds Yeah, thank you very much and congratulations for a great set of performance. Uh so my first question is uh one bookkeeping on the bookkeeping 47:03 47 minutes, 3 seconds side what was the revenue loss uh because of uh this uh war in the middle middle east. 47:12 47 minutes, 12 seconds So Ashini uh uh if you look at the revenue loss it was divided into three aspects the site construction the bought 47:19 47 minutes, 19 seconds out and the uh tower manufacturing. I think if I include all of them together would be more in the range of 200 to 250 crores because there was more 47:27 47 minutes, 27 seconds disruptions coming out of supply chain rather than site uh and that would be a number more in the range of 200 to 250 crores. 47:35 47 minutes, 35 seconds Okay. Thank you very much. Secondly sir uh since you know this one release has started on the JM side while you did 47:44 47 minutes, 44 seconds indicate on the collection side but then how is the tender pipeline over there has the JM2 has kind of you know started 47:51 47 minutes, 51 seconds seeing we started seeing you know anything on the tender pipeline side uh while we speak Ashini we've seen a 47:58 47 minutes, 58 seconds few tenders come up in one particular state but if you ask me are you seeing a lot of tenders come out as presented by honorable FM in the budget Not yet. 48:07 48 minutes, 7 seconds We're still waiting for that. But as of now, a few tenders which clearly we're not focused as of now. But not so much 48:15 48 minutes, 15 seconds traction seen in the last two months as far as JGM tenders are concerned. 48:20 48 minutes, 20 seconds Okay. Okay. And my final question is sir uh given the fact that now we are a very at a very strong footing in terms of you know balance sheet and then growth 48:28 48 minutes, 28 seconds visibility uh wanted to have some sense that over the next you know two three years what would be our you know key priorities uh from here on. 48:40 48 minutes, 40 seconds Sashini uh clearly if you look at it uh strategically where we are positioned ourselves you know we are our priority 48:47 48 minutes, 47 seconds is more focused on large scale complex projects across all business units where we are driven by our design capability 48:54 48 minutes, 54 seconds when we have now more than 500 people at our design center of excellence you know across various business units uh we have 49:03 49 minutes, 3 seconds the best tools which are used for productivity monitoring planning all of that we're investing in automation We are increasing our capacity at the 49:11 49 minutes, 11 seconds plant. So our first focus is large scale projects with clients who we have worked for more than in the last few decades. 49:18 49 minutes, 18 seconds Uh you know today more than 50% of our order book if not 60% comes from our top 10 clients and some of them have been with us for uh the last 10 20 years if 49:27 49 minutes, 27 seconds not one of them has been with us for 25 years. So the first priority is large scale strategic complex projects with 49:34 49 minutes, 34 seconds minimal competition which will help us get into higher margin and return ratios. Our our second focus is also making sure that some of our businesses 49:42 49 minutes, 42 seconds look at the international footprints also. So today if you look at the international footprint is primarily transmission and oil and gas but the 49:50 49 minutes, 50 seconds other businesses have also done well build themselves over the last 8 to 10 years. So we would be taking some of our other businesses also on the international footprint. Our third 49:59 49 minutes, 59 seconds priority would be again reduce some of our other non-core assets maybe this year maybe next year so that at least we are out of majority of our non-core in 50:06 50 minutes, 6 seconds the next couple of years and a fourth and the largest and the biggest priority if you ask me is to make sure that we can keep our team intact right because 50:15 50 minutes, 15 seconds that's our biggest challenge today in terms of attrition and all of that. So make sure that we we keep this culture of keeping the team together focused on 50:23 50 minutes, 23 seconds profitable growth and that's what as as senior leadership we are driving towards. 50:30 50 minutes, 30 seconds Thank you sir. Just one more if I can squeeze in. So in the Middle East you know you just you know alluded to the fact on the labor issues or 50:39 50 minutes, 39 seconds how are you kind of managing you know this labor availability especially in the international geographies given the scenario that we have. 50:48 50 minutes, 48 seconds So Ashwini um I think labor issues today are more um dominant on the Indian front. What we have seen you know people 50:57 50 minutes, 57 seconds leaving Marin after Holi and West Bengal elections and continuing till Bakarit it's it's a large impact coming on the Indian front not necessarily on the 51:05 51 minutes, 5 seconds international front. uh as I said earlier international sites all continue to work at different speed levels some at maybe the similar productivity some 51:14 51 minutes, 14 seconds at lower productivity and there isn't such a big challenge on labor at the international front it's a much larger challenge in April and May on the 51:21 51 minutes, 21 seconds domestic front than the international front Minister thank you very much thank you 51:32 51 minutes, 32 seconds thank you next question is from the line of web sharp from GM Financial please go ahead. 51:39 51 minutes, 39 seconds Yeah, thanks for the followup. So firstly on the LMG side uh revenue growth was very strong at 64% to 3,000 51:46 51 minutes, 46 seconds odd per. So how have we performed at the EITA level and P level? 51:53 51 minutes, 53 seconds So uh you know as we had guided earlier given the auto book visibility we said that revenue would do well and they've done well. If you look at it on a FI26 52:02 52 minutes, 2 seconds level at the AITA level also they've grown at more than 100%. So on a on a revenue of 3,000 odd crores their AITA 52:09 52 minutes, 9 seconds was closer to 200 crores and a PBT level they were at closer to 16 170 odd crores which is again a grown 100 crores plus 52:17 52 minutes, 17 seconds 100% plus so at aa level they've been at more at 6.7 6.6 6.7% at a PBT level they 52:24 52 minutes, 24 seconds more at a 5.6 5.7 level which is much higher than what they did in the previous year. Previous year if you look at it there's an improvement of more than 100 basis points both on a beta and PBT as far as LMG is concerned. 52:37 52 minutes, 37 seconds Okay, sure. So lastly, uh what is the amount of warranty guarantee sitting on the book as of March? 52:45 52 minutes, 45 seconds So uh over the previous year, we have provided for an additional of closer to 100 crores in warranty guarantee on our balance sheet and at the end of March 52:53 52 minutes, 53 seconds our number should be approximately 550 odd crores of warranty guarantee in our books. uh besides warranty guarantee 53:02 53 minutes, 2 seconds provision of 100 crores we have also done a ECL provision of closer to 100 crores in the previous year and that number on book should be closer to 250 53:09 53 minutes, 9 seconds odd crores if I'm not wrong at ECL we are at around 320 320 crores thank you Ram so the warranty guarantee and ECL put 53:16 53 minutes, 16 seconds together is a number closer to 870 880 crores and have we received the money on entire 53:24 53 minutes, 24 seconds money from Indo real estate now yeah I think we have already declared that on our in our investor presentation. I think we have received 53:32 53 minutes, 32 seconds nearly the full amount. I think the full amount is what the team tells me the full amount. 53:38 53 minutes, 38 seconds Okay. And sir, uh in SI27 any plans on Shu Logistics to either monetize it or 53:47 53 minutes, 47 seconds so as far as Shibum logistics is concerned, our focus is now to reduce debt and we have reduced that significantly. We believe that our 53:54 53 minutes, 54 seconds outside debt would be closer to zero by June. we are selling up some of our assets uh you know some of our warehouses and moving to a rental model. 54:02 54 minutes, 2 seconds So our first focus is to make external debt closer to zero which I expect would happen in Q1 Q2 itself. Uh post that we will you know rationalize the business 54:11 54 minutes, 11 seconds more with rented warehouses and look at uh maybe strategic opportunities getting into the next year. 54:18 54 minutes, 18 seconds What would be your debt right now without the external debt? 54:21 54 minutes, 21 seconds It's closer to 60 60 odd crores as far external on 31st March. I think this would get closer to zero by June itself. 54:30 54 minutes, 30 seconds Okay. Sir, lastly on tax rate, what would be the tax rate for FI27 at a standard level? 54:38 54 minutes, 38 seconds I think it's difficult to give you an expectation on that. Clearly, you know, our tax rates if I look at it from a three-year perspective has been more in 54:46 54 minutes, 46 seconds the range of 28 to 30%. And given that international profitability still will drive a significant number of our profit, I expect it to stay in the range of 28 to 30% only. 54:57 54 minutes, 57 seconds At standalone level, it has been around 26 27% for last 3 four years. So 55:03 55 minutes, 3 seconds yes, standalone 26 to 28 console 28 to 30. 55:08 55 minutes, 8 seconds Oh, thank you sir. Those are my questions. 55:13 55 minutes, 13 seconds Thank you. Next question is from the line of Ravi Swami Natan from Aendas Spark. Please go ahead. Uh 55:21 55 minutes, 21 seconds hi sir, thanks for taking my question and congrats on a numbers. Uh sir uh every quarter, every call you give a 55:28 55 minutes, 28 seconds broad idea in terms of the pipeline of orders which are there in the market both uh broadly at overall level and 55:35 55 minutes, 35 seconds domestic and international. uh if you can give that number and also uh the power TND breakup between domestic and 55:43 55 minutes, 43 seconds international if you can give it for this year and uh next year and uh you had told that the power TND we expect it 55:50 55 minutes, 50 seconds to grow by 20%. Uh how the both the domestic and international segments subsegments are likely to grow. 55:58 55 minutes, 58 seconds So I know you're asking me exactly what we have planned in the strategy for the current year. Let me give it to you in a in a short synopsis. Um I'm just 56:08 56 minutes, 8 seconds repeating something which I said earlier. Uh TNDPNF uh huge visibility across all clients we work and that continues to be a big focus in the first 56:16 56 minutes, 16 seconds 6 months building on oil and gas in the first two quarters which would which we expect would give us good wins in Q3 Q4. 56:23 56 minutes, 23 seconds Urban infra we continue to be selective on projects because it's very capex intensive. Now we already have 60 BMs which we have invested in the last two years. Uh all of them are already 56:32 56 minutes, 32 seconds occupied while we speak or or committed while we speak. So urban infra we continue to be selective and cautious in terms of what we build but we will continuously focus on growth there also. 56:44 56 minutes, 44 seconds So from overall perspective domestic TND 1 lakh cr plus visible pipeline to be focused on international 56:52 56 minutes, 52 seconds TND the markets which we are looking at itself is a few trillion dollars which we have to bid for in the next 6 to9 months uh oil and gas from what I hear 57:00 57 minutes from this four markets this number could be easily in the range of 50 to 70,000 crores if not higher than that which we have to bid for in the next 6 months and 57:08 57 minutes, 8 seconds urban the numbers could be high but our focus would be on selective bidding as I've said earlier Um as far as TND is concerned if you 57:16 57 minutes, 16 seconds look at you know FI25 and 26 FI 25 significant portion of our T&D order came from TL domestic uh more than we 57:24 57 minutes, 24 seconds know around 7,000 crores is what we got in TL domestic and FI25 which came down to closer to 4 and a half,000 crores in 26 but we expect this to again go up 57:33 57 minutes, 33 seconds significantly in the next year. uh when I look at the international markets there was uh LNG parcel and TLI all put 57:40 57 minutes, 40 seconds together uh which have been very similar in the last 2 years in FI25 they got orders of around 6 and a half,000 crores 57:47 57 minutes, 47 seconds in FI26 around 8,000 crores I expect this business to do more than 8 8,000 crores in 27 also uh including some 57:56 57 minutes, 56 seconds solar projects which we are bidding for so focus is a right mix of both domestic and international uh in the range of 8 58:03 58 minutes, 3 seconds to 8 to 9,000 international in the range 6 to 7,000 domestic and that's what will continue to drive growth going forward. 58:11 58 minutes, 11 seconds Understood sir. Thanks a lot. 58:16 58 minutes, 16 seconds Thank you. That was the last question for today. I would now like to hand the call back to the management for closing comments. 58:25 58 minutes, 25 seconds Thank you very much for attending the call. Um hopefully we will continue to deliver as we have done in the past. Thank you. 58:34 58 minutes, 34 seconds Thank you very much on behalf of Stam Capital Advisor. That concludes this conference. Thank you also joining us 58:41 58 minutes, 41 seconds today and you may now disconnect your lines.