Rajesh Power Services Ltd — Q4 FY26

Rajesh Power Services Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TykRnrJSQFw Published: 2 weeks ago

0:01 1 second Good evening ladies and gentlemen. I'm Karthik, moderator for the earnings conference call. Welcome to Rajesh Power 0:08 8 seconds Services Limited H2 FY26 and FY26 earnings conference call. We have with 0:16 16 seconds us today from the management Mr. Uts Panchal director and CEO, Mrs. 0:22 22 seconds Nikitasha, finance head and Mr. Adish Patel, senior manager finance. 0:29 29 seconds As a reminder, all participants will be in listen mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:39 39 seconds Should you need assistance during the conference call, please signal an operator by pressing star and zero on a touchstone telephone. 0:47 47 seconds Please note this conference is recorded. 0:50 50 seconds I would now like to hand over the floor to Mr. Arpit Mundra EY team for the cautionary statement. Thank you and over to you all. 1:00 1 minute Thank you Karthik. Good evening everyone. On the behalf of the management I am pleased to welcome you all to Rajesh Power Services Limited earnings conference call to discuss the H2 FI26 and FI26 financial results. 1:12 1 minute, 12 seconds Today from the management side we have with us Mr. Uso Panchar director and CEO Miss Nikita Shah finance and Mr. Adish Patel senior finance manager. Please 1:20 1 minute, 20 seconds note a copy of all the disclosure is available in the investor section of the website as well as on the stock exchange. Anything said on this call which reflect the outlook for the future 1:29 1 minute, 29 seconds of which could be constructed as a forwardlooking statement must be reviewed in conjunction with the risk that the company faces. Now I shall hand 1:37 1 minute, 37 seconds over the call to for his opening remarks. Over to you Sabay. Thank you. 1:43 1 minute, 43 seconds Thank you Ar. Uh good evening everyone and a very warm welcome to all of you to the earnings conference call of Rajesh 1:51 1 minute, 51 seconds Power Services Limited. The audited financial results along with the investor presentation for H2 and FI26 1:59 1 minute, 59 seconds have already been uploaded on the stock exchange. We trust you have had the opportunity to review them and have your questions ready which I, Miss Nikita and 2:08 2 minutes, 8 seconds Mr. Adish look forward to addressing later during the Q&A session. Before I begin with our customer briefing, I 2:16 2 minutes, 16 seconds would like to share a broader perspective. As Rajes Power, our journey is becoming increasingly exciting and meaningful. We are actively identifying 2:25 2 minutes, 25 seconds and executing opportunities across new states, new customer segments and new channels of growth. As the power sector 2:32 2 minutes, 32 seconds in India evolves rapidly, we believe the coming years hold tremendous promise not just for Rajesh Power as an organization 2:40 2 minutes, 40 seconds but for all our stakeholders. So let me begin this uh with the operational highlights for the second half and the 2:48 2 minutes, 48 seconds full financial year. As of 31st March 2026, the company's unexecuted order 2:54 2 minutes, 54 seconds book stood at 3326 cr. Of this the power distribution segment accounted for 71% 3:02 3 minutes, 2 seconds that is 2365 cr and the power transmission segment constituted the remaining 29% that is 961 cr. This 3:11 3 minutes, 11 seconds healthy order book gives us strong revenue visibility for the coming quarters. During FI26, 3:19 3 minutes, 19 seconds the company recorded order inflows of rupees 200 uh 2743 3:26 3 minutes, 26 seconds cr supported by consistent wins across government, utility and private sector projects. During the year, Rajes Power 3:35 3 minutes, 35 seconds successfully executed and commissioned several projects underlying our strong project management and execution capabilities. 3:44 3 minutes, 44 seconds Key among them include 132 KV gas insulated substation at Japur in Rajasthan. 66 KV substation project for JK paper in Gujarat. 3:56 3 minutes, 56 seconds RDSS schemes Gandhinagar and Ahmedabad projects for UGBCL Gujarat. Lal traction 4:05 4 minutes, 5 seconds substation project in Bikaner for Rajasthan. 4:12 4 minutes, 12 seconds 132 KV GIS substation project in Japur and 220 KV GIS project at 4:20 4 minutes, 20 seconds uh for Gujarat. These projects strengthen our credentials for gas insulated substation, air insulated 4:28 4 minutes, 28 seconds substation, underground cabling and turnkey grid infrastructure. As we look ahead, I'm pleased to share that the 4:35 4 minutes, 35 seconds company has currently uh the company currently has a targeted robust bid book of approximately 6,000 cr 75% of which 4:45 4 minutes, 45 seconds originates from Gujarat and 30 uh 25% from other states reflecting our 4:53 4 minutes, 53 seconds expanding national foot footprint across Rajasthan, Uttarakhand, Maharashtra, Bihar and beyond. This diversification 5:02 5 minutes, 2 seconds aligns with our strategy to reduce geographic concentration risk and pursue sustainable long-term growth. 5:10 5 minutes, 10 seconds India's power sector is entering a transformational phase under Vix Bat 2047 vision. The draft national 5:18 5 minutes, 18 seconds electricity policy 2026 places significant emphasis on the policy targets per capita electricity 5:25 5 minutes, 25 seconds consumption for from 2,000 kilowatt hour by 2030 to over 4,000 kilowatt hour by 2047. 5:35 5 minutes, 35 seconds Expansion and modernization of transmission networks. achieving singledigit ATNC losses in distribution, 5:42 5 minutes, 42 seconds underground networks in urban areas and adoption of advanced grid technologies and redundancy planning. Rajes power is 5:50 5 minutes, 50 seconds well aligned with these national priorities. 5:53 5 minutes, 53 seconds Our work in RDSS projects, underground cabling, GIS substations and highcapacity transmission infrastructure 6:01 6 minutes, 1 second positions us as a key partner in India's grid modernization journey. I would now like to highlight the tangible outcomes 6:08 6 minutes, 8 seconds we are witnessing from the deployment of MVCC and underground distribution networks. Based on the discom feedback 6:16 6 minutes, 16 seconds and on ground performance data, MVCC and underground cable installations have resulted in a 70 to 80% reduction in the 6:26 6 minutes, 26 seconds interruption durations which are driven by structurally stronger networks and quicker fault management. These results 6:33 6 minutes, 33 seconds underscore that undergrounding is not only a reliability enhancing uh intervention but also an economically 6:41 6 minutes, 41 seconds compelling solution. Discoms increasingly indicate that underground distribution delivers a rapid payback with incremental revenue and efficiency 6:50 6 minutes, 50 seconds gains significantly exceeding the overall cost of underground cabling over its life cycle. The key operational 6:57 6 minutes, 57 seconds benefits of these include 70 to 80% reduction in interruptions, interruption duration, significant reduction in uh HD 7:06 7 minutes, 6 seconds faults, faster fault isolation and restoration which is enabled through RMU based sectionalization, improved voltage 7:14 7 minutes, 14 seconds stability, enhanced public safety by eliminating exposed overhead conductors and removal of HD pole improves customer 7:23 7 minutes, 23 seconds promises safety and enables smoother execution. ution in municipal infrastructure projects. In FY26 alone, 7:31 7 minutes, 31 seconds we have successfully strengthened the distribution network by installing over 350 feeders which ultimately affect more 7:40 7 minutes, 40 seconds than 15 lakh consumers. We have installed over 4,000 ring units and we have installed over,200 distribution 7:48 7 minutes, 48 seconds transformers along with laying more than 1,300 kilometers of cable in a single year. FY26 also marks a strategic 7:58 7 minutes, 58 seconds milestone for Rajes Power with our entry into battery energy storage system where we signed a 65 by 130 megawatt hour 8:07 8 minutes, 7 seconds standalone battery energy storage uh system project in Gujarat which was awarded by GVNL. The project is designed 8:15 8 minutes, 15 seconds to enhance grid flexibility, optimize peak demand management and enabling smoother integration of renewable energy 8:23 8 minutes, 23 seconds into the grid. As highlighted, BESS is becoming central to India's energy transition, especially as renewable 8:32 8 minutes, 32 seconds capacity continues to grow rapidly. With over 102 gawatt hour of storage capacity 8:38 8 minutes, 38 seconds already tendered in India, BESS is transitioning from pilot project to mainstream Greek infrastructure. 8:45 8 minutes, 45 seconds We believe this marks the beginning of a new growth engine for Rajes Power over the coming decade. Rajes Power operates 8:52 8 minutes, 52 seconds on a clearly differentiated transmission and distribution platform that sets us apart from conventional TND players. Our 9:01 9 minutes, 1 second strong leadership in underground cabling significantly reduces right off risk as these projects are primarily right of 9:09 9 minutes, 9 seconds usage in nature which enables smoother execution with minimal regulatory challenge. This structurally advantage 9:18 9 minutes, 18 seconds allows us to deliver projects faster typically within 18 to 24 months compared to the longer timelines seen in 9:25 9 minutes, 25 seconds traditional transmission EPC models. We work with highquality customers including toprated discoms and 9:32 9 minutes, 32 seconds multilateral backed entities which ensure predictable cash flows and strong working capital discipline coupled with 9:40 9 minutes, 40 seconds our deep technical expertise across the wattage levels from right from 1.1 KV up to 400 KV spanning transmission 9:49 9 minutes, 49 seconds distribution GIS underground cabling and operations and maintenance. We believe Rajesh Power is uniquely positioned as a 9:56 9 minutes, 56 seconds scalable, execution focused and resilient TND platform. Turning in to the financials financial performance, 10:05 10 minutes, 5 seconds I'm pleased to inform you that during the FY26, the company has recorded a total revenue of rupees 1628 cr. The 10:14 10 minutes, 14 seconds IBITA stood at rupes 197 cr. The IITA margin was 12.1% and the PAT margin was 8.8%. 10:24 10 minutes, 24 seconds The year witnessed robust and consistent performance supported by disciplined execution and operational effectiveness. 10:31 10 minutes, 31 seconds Historically on annualized basis our revenue has grown at a caggr of over 99% 10:38 10 minutes, 38 seconds over the last three years ranging from FY23 to FY26 reflecting the scalability of our business model at Rajes Power employee safety remains a top priority. 10:49 10 minutes, 49 seconds During the year, we conducted multiple safety awareness initiatives, including structured programs such as Shuraka covered safety workshop aimed at 10:56 10 minutes, 56 seconds strengthening on ground safety practices and reinforcing a cultural of responsibility across project sites. 11:03 11 minutes, 3 seconds Beyond safety, we continue to invest in training cap capability building and team engagement, ensuring our people are 11:10 11 minutes, 10 seconds prepared to execute increasingly complex next generation power infrastructure projects. Before concluding, I would 11:18 11 minutes, 18 seconds like to express my sincere gratitude to all our stakeholders, our clients, partners, investors and lenders for 11:25 11 minutes, 25 seconds their continued trust and support. Above all, I would like to thank our employees who whose dedication and excellence have 11:33 11 minutes, 33 seconds been instrumental in delivering another strong year. While FY26 has been a year 11:40 11 minutes, 40 seconds of solid progress, we view this as just a stepping stone towards larger and more impactful milestones ahead. We remain 11:48 11 minutes, 48 seconds firmly committed to profitable growth, operational excellence and sustainable business practices aligned with India's 11:56 11 minutes, 56 seconds evolving power ecosystem. Once again, thank you for your confidence in Rajesh Power Services Limited. With this I 12:04 12 minutes, 4 seconds would like I would I would now like to hand over the call to Miss Nikkita Sha who is a finance head who will take you through the detailed financial performance of the company. 12:17 12 minutes, 17 seconds Thank you Chai. Good evening everyone and a warm welcome to Rajes Flower Services Limited second half and full 12:24 12 minutes, 24 seconds financial full financial year 2026 earnings conference call. Thank you for joining us today. It is my pleasure to 12:32 12 minutes, 32 seconds walk you through our financial performance for the second half and full year ended 31st March 2026. Let me begin 12:39 12 minutes, 39 seconds with the key financial highlights for financial year 2026 in comparison with financial year 2025. 12:46 12 minutes, 46 seconds In financial year 2026, revenue grew 52% to 1628 CR on the back of efficient 12:55 12 minutes, 55 seconds project execution and a diversified order book. While Iida and pet rose by 13:00 13 minutes 59% and 48% respectively to rupees 197 cr and rupees 143 cr respectively resulting in margin of 12.1% and 8.8%. 13:13 13 minutes, 13 seconds On a balance sheet front, the company's net worth increased by 53% yearonear to 13:20 13 minutes, 20 seconds rupees 406 year in financial year 2026 underscoring our strong capital 13:28 13 minutes, 28 seconds position. ROC and roe stood at 43.65% and 35.26% 26% respectively in second 13:37 13 minutes, 37 seconds half of financial year 2026 demonstrating efficient capital deployment and robust return generation. 13:43 13 minutes, 43 seconds Our capital structure continues to remain comfortable with the debt equity ratio of 0.31 only for the period for 13:52 13 minutes, 52 seconds the period ended 31st of March 2026 reflecting prudent liies and financial discipline. Now let me share the key 14:00 14 minutes financial highlights for the second half of financial year 2026 in comparison with second half of financial year 2025. 14:08 14 minutes, 8 seconds During the second half of financial year 2026, the company delivered a strong a strong performance across all key 14:15 14 minutes, 15 seconds metrics. Revenue grew by 30% yearonear to 990 CR driven by disciplined project 14:23 14 minutes, 23 seconds execution and the strength of our well diversified order book. IDIDA for the second half of financial year 2026 14:30 14 minutes, 30 seconds increased by 31% yearonear to rupees 113 cr with a healthy IBIDA margin of 11.4% 14:39 14 minutes, 39 seconds reflecting improved operating efficiency and effective cost management. Profit after tax also grew by 26% yearonear to 14:48 14 minutes, 48 seconds rupees 84 cr resulting in a pet margin of 8.5% supported by higher operating leverage and stable financial cost. 14:57 14 minutes, 57 seconds Overall these results highlight radishes power limited strong operational execution balance sheet strength and continued focus on sustainable and well 15:05 15 minutes, 5 seconds diversified growth. With that note, I conclude the financial highlights. I now request the moderator to open the floor for the question and answer session. 15:15 15 minutes, 15 seconds Thank you so much. 15:17 15 minutes, 17 seconds Thank you ma'am. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, 15:24 15 minutes, 24 seconds please press star and one on a telephone keypad and wait for your turn to ask a question. 15:31 15 minutes, 31 seconds If you would like to withdraw your request, you may do so by pressing star and one again. 15:39 15 minutes, 39 seconds Ladies and gentlemen, to ask a question, please press star and one on a telephone keypad. 15:48 15 minutes, 48 seconds Wait for a moment while the question queue assembles. 15:55 15 minutes, 55 seconds The first question comes from the line of Aniket Madwani from Step Trade Capital. Please go ahead. 16:03 16 minutes, 3 seconds Yeah. Hello. How? Yes. 16:08 16 minutes, 8 seconds Yes. So my question was uh with regards to the best project that you have signed with GVN. So uh what is the uh timeline that this project will be know complete? 16:24 16 minutes, 24 seconds Will it be completed by by 27 and can we expect the from this project in this year? 16:33 16 minutes, 33 seconds uh so this uh project is to be completed by September 27 uh the entire execution and then the revenue will start post 16:42 16 minutes, 42 seconds that but we'll try to execute maybe a bit higher or by Q1 or 27 16:50 16 minutes, 50 seconds and apart from this uh single project u are you in talks with any other projects in best segment 16:59 16 minutes, 59 seconds so currently uh our strategy for BSS is mainly to understand the entire value chain of the BSS project from sourcing 17:08 17 minutes, 8 seconds till EPC uh EPC part everything uh currently we're not looking to bid for any more BSS projects we are interested 17:17 17 minutes, 17 seconds in uh bidding for more BSS EPC projects uh where we see a lot of value addition 17:23 17 minutes, 23 seconds and direct uh this is exactly what we do at Rajesh power uh the BS EPC part of 17:33 17 minutes, 33 seconds Okay. So you are more interested in best EPC. So uh what would be the capex for 1 megawatt and then for for best infrastructure? 17:44 17 minutes, 44 seconds So it's it's broadly uh 1.5 to 2.5 cr 1.52 to 2.5 for one megawatt. 17:54 17 minutes, 54 seconds Yeah. Okay. Yeah. Thank you. 18:03 18 minutes, 3 seconds Thank you. The next question comes from the line of Augusta D from CAO Capital. Please go ahead. 18:11 18 minutes, 11 seconds Go. Am I? Yes. 18:15 18 minutes, 15 seconds Hello. Yeah, thank you very much. Good evening. Uh sir, my question uh pertains to your balance sheet. uh the trade receivables have jumped quite 18:23 18 minutes, 23 seconds substantially compared to even last year and also uh compared to the first first half along with the inventory. So can 18:30 18 minutes, 30 seconds you break this down? Uh is there any element of the best project which is getting reflected here um or uh is there 18:38 18 minutes, 38 seconds anything which you would like to point out which could be worrisome going forward. uh are there any delays from the clients in terms of payments or this 18:46 18 minutes, 46 seconds is something which you were expecting and it's just a transient thing uh I think this is just a I think the higher receivable is just a short-time 18:55 18 minutes, 55 seconds phenomenon I think because of uh very high building in the month of March uh there are no BSS receivables in this 19:02 19 minutes, 2 seconds project uh the only reason of this higher receivables you see is because of uh very good billing in the month of 19:09 19 minutes, 9 seconds March there is no delay in any uh payment rece receable from a client or customer. It is the payment terms stay as it is uh 45 to 60 days for all our customers. 19:22 19 minutes, 22 seconds Uh but the billing was not that high. 19:24 19 minutes, 24 seconds Right? If I look at last year's uh H2 numbers, the revenues, consolidated revenues was 760 crores. Now it is 919 19:31 19 minutes, 31 seconds crores. But the receivables have gone from uh 181 crores to 350 cr. So that's a substantial jump. I mean it's not 19:40 19 minutes, 40 seconds proportionate. the number of days has definitely increased. So that's why I'm asking the question 19:47 19 minutes, 47 seconds the only reason is because of the higher billing in the month of March. So uh that's why the are showing a higher number uh at a year end basis. 19:56 19 minutes, 56 seconds So you expect everything to be cleared by let's say June. 20:00 20 minutes Yeah. 45 to 60 days the standard uh payment terms which we have for all our customers. 20:05 20 minutes, 5 seconds Perfect. Perfect. Uh so for next year you you the order inflows have been excellent this year and your commentary on the bid book is also looking fairly 20:14 20 minutes, 14 seconds good. Um how do you see the next year panning out? Uh sir the previous time we interacted you had talked about a four 20:21 20 minutes, 21 seconds five year opportunity of uh over 15,000 crores from just the three states of Branchel Gujad and Rajasthan. Uh so uh 20:29 20 minutes, 29 seconds how do you see that panning out? Uh and are there any changes there any improvements or any cuts? 20:37 20 minutes, 37 seconds Yeah. So yes, last time what we talked about I think we are consistent with that in the sense that we are looking at 20:45 20 minutes, 45 seconds opportunity size the entire market just Gujarat we are seeing a opportunity in the jetco of around you know 10,000 cr 20:54 20 minutes, 54 seconds annual opportunity out of which addressable market I would say is more towards 45%. So around you know 4,000 to 21:01 21 minutes, 1 second 4,500 cr is addressable market just from the Gujarat transmission utility. 21:06 21 minutes, 6 seconds Additionally you know distribution is having additional roughly 5,000 cr. This is just for Gujarat and uh apart from 21:14 21 minutes, 14 seconds Gujarat we have Rajasthan, Maharashtra, Uttarakhand, Orisa, Jarkand and also we are bidding uh we are in plans to bid 21:21 21 minutes, 21 seconds for uh railway electrification trenders where we have to build traction substations sectioning post and subsectioning post. So adding adding all 21:30 21 minutes, 30 seconds those opportunities we are yes we are seeing around you know a 15,000 rough uh figure of 15,000 cr opportunity size. 21:39 21 minutes, 39 seconds Okay. So last time you had mentioned TAM of 10,000 crores per year. So you are seeing acceleration in that like increase in the size of the project. 21:46 21 minutes, 46 seconds Yes. Addressable addressable market in the coming future we are seeing roughly around 14 to 15,000 cr 21:53 21 minutes, 53 seconds per year. Um one final question sir how does uh how does next year look like to you in terms of execution uh timelines 22:02 22 minutes, 2 seconds uh the projects that you have in hand where mobilization has happened. 22:06 22 minutes, 6 seconds How do you see execution panning out for next year? 22:09 22 minutes, 9 seconds So we are confident on the execution like we did uh this year. We are uh confident on achieving uh execution 22:17 22 minutes, 17 seconds executing the projects within the timeline of 18 to 24 months which is the ideal timeline of our pro majority of our projects. So we are confident that 22:25 22 minutes, 25 seconds few projects will be will be mobilized you know in the next two months. Few have already been mobilized in the last 3 four months. The revenues of which 22:33 22 minutes, 33 seconds will be realized in in the coming you know 12 to 18 months. 22:38 22 minutes, 38 seconds Uh great sir. Uh yeah that's about it from my side. Uh yeah okay. Uh and sir 22:45 22 minutes, 45 seconds any revision in the revenue growth guidance of uh you you were saying 35 to 40%. Uh so any revision there sir 22:53 22 minutes, 53 seconds because the time has increased. Uh would you like to revise sir? 22:56 22 minutes, 56 seconds No re we are uh we are sticking with our previously committed guidance. No revision. 23:05 23 minutes, 5 seconds Perfection sir. Uh so thank you very much and and all the best sir. Thank you. 23:10 23 minutes, 10 seconds So one request if you can start doing quarterly quarterly results that would be of great help. Yeah that's a that's a request sir. Thank you. Yeah. All the best sir. 23:19 23 minutes, 19 seconds Thank you. 23:21 23 minutes, 21 seconds Thank you. The next question comes from the line of Deepak Pod from Fire Capital. Please go ahead. 23:28 23 minutes, 28 seconds Yeah I'm a sir. Yes. 23:31 23 minutes, 31 seconds Okay. Okay. Um so thank you very much uh for this opportunity. So just first of wanted to understand you mentioned about BSS as a new growth engine also um 23:40 23 minutes, 40 seconds you're looking at so so can you throw some light on the opportunity we are looking there what sort of contribution from BSS we can see over next 2 three 23:47 23 minutes, 47 seconds years so what's the margin profile and what's the margin profile in BS sure sure so you know uh as of now we as 23:57 23 minutes, 57 seconds a country have witnessed more of BSS projects on a developer basis but what we are seeing you know the PSUs like 24:05 24 minutes, 5 seconds NTPC or uh you know GIPCL or some some PSUs have been aggressively involved in 24:13 24 minutes, 13 seconds uh having announcing bids which are uh BESS EBC you know roughly in the range 24:19 24 minutes, 19 seconds starting from 400 500 cr and ranging to you know totaling to around 10,000 cr. 24:25 24 minutes, 25 seconds So we are seeing a very good opportunity in the BSS EPC space and that was the strategy to enter the BSS segment that 24:32 24 minutes, 32 seconds EPC is our forte and if you see majority uh uh 30% amount of a BESS project 24:40 24 minutes, 40 seconds accounts to the AC side AC side means the substation that is to be constructed along the BESS site. So substation is uh 24:49 24 minutes, 49 seconds basically a Raj P's expertise. So that is a strategic entry that we are looking at and we'll slowly be exploring uh good amount of opportunities in this space. 25:00 25 minutes Okay. So so I mean um in terms of orders or in terms of revenue contribution in 3 years where do you see I mean can BSS contribute 15 20% revenue mix. 25:12 25 minutes, 12 seconds So I think uh giving an accurate percentage would be difficult to uh uh give right now but I I do feel that 25:20 25 minutes, 20 seconds we'll move towards that uh that pie of BSS. 25:25 25 minutes, 25 seconds Okay. Okay. And what's the margin profile here? 25:28 25 minutes, 28 seconds Yeah. Same margin profile as we we have in transmission segment because mainly it's substation along with substation it is just plug and play of batteries nothing else. 25:37 25 minutes, 37 seconds Okay understood. and and you mentioned to the previous participant we are uh looking for I mean no revision and and we're looking for previous growth 25:45 25 minutes, 45 seconds guidance I mean so so is is that 40% CG is what we are looking at over next 3 four years 25:52 25 minutes, 52 seconds yes so uh for the next FY27 we are looking at a 40% growth 25:59 25 minutes, 59 seconds uh-huh okay so so earlier we have mentioned I think over next 3 to four years right that this is the growth that we are looking at right yeah roughly okay so we maintain Correct. 26:09 26 minutes, 9 seconds Yes. 26:10 26 minutes, 10 seconds Okay. Understood. And in terms of margins, I mean this this second half of a gross margins and even aa margins were lower. Um so so what led to that and and 26:20 26 minutes, 20 seconds how should one look at aida margins going forward? Aida margin. Can you repeat the question please? 26:28 26 minutes, 28 seconds So I was just trying to understand our gross margin as well as aida margin were lower in second half. So what led to this decline and how should one look at uh put this parameter going forward. 26:38 26 minutes, 38 seconds Okay. Uh so uh I think that just could be a uh what you can say a billing mix issue. Uh broadly I think at a project 26:45 26 minutes, 45 seconds level we look at a a bit of around 11 to 12% and pat margins of usually 8 to 9%. 26:51 26 minutes, 51 seconds So that's how we broadly do it. Uh small few few percentage points spike here and there is mainly because of like what sort of billings we do to the client. 27:01 27 minutes, 1 second Okay. Uh so so so the second half reduction is only because of the billing mix changes otherwise in general we are looking at 11 12% EITA margin 8 to 9%. 27:10 27 minutes, 10 seconds Yes. Yes. As a as a as a as a pat margins. Yes. 27:16 27 minutes, 16 seconds And and why our employee cost and other expenses are lower the second half. 27:21 27 minutes, 21 seconds I think employee expense because I think uh more project man project managers managing more projects. I think it is just that now the scale of revenue has 27:29 27 minutes, 29 seconds increased substantially but our employee costs would not change in the same proportion. So that's the advantage which will uh see it uh for going forward also. 27:39 27 minutes, 39 seconds Okay. Okay. Okay. Understood. And just one last small thing um you you mentioned your bid waiting result is about 2200 crores and pipeline is around 27:47 27 minutes, 47 seconds 3500 crores. So total is about 5,700 crores. So, so what sort of conversion we are looking at on that pipeline of 27:55 27 minutes, 55 seconds total 5,700 crores that you so historically our conversion like our winning rates are usually 40%. So that's 28:03 28 minutes, 3 seconds some that's the same kind of number we are looking for this project and and what's the timeline of this announcement to happen for this entire 28:10 28 minutes, 10 seconds 6,000 odd crores. So for the bids which we have already bid about 22 to 100 cr I think we are looking by end of May we'll 28:17 28 minutes, 17 seconds have all the conclusions uh ready uh and for other projects we'll go as as and when the tender opens and concludes 28:26 28 minutes, 26 seconds okay for 2200 by May end we'll get the conclusion yeah May and maybe first week of June but that's the number expected timeline because there's nothing uh which we have 28:35 28 minutes, 35 seconds a control of but that's what is the expected timeline for that understood understood fair enough that's very helpful sir I mean wish you all the very best and that's it from my side. 28:44 28 minutes, 44 seconds Thank you so much. Thank you. 28:47 28 minutes, 47 seconds Thank you. Participants are requested to restrict to three questions in the initial round and join back the queue for more questions. 28:55 28 minutes, 55 seconds The next question comes from the line of Shan Sha from Dutert Capital Markets Private Limited. Please go ahead. 29:03 29 minutes, 3 seconds Uh hi sir. Uh thank you for the opportunity. Uh sir, just couple of uh uh questions. So you have mentioned in 29:10 29 minutes, 10 seconds terms of the 40% revenue kegger for next two three years that we are looking at uh just two three things further to 29:18 29 minutes, 18 seconds understand uh one is on on the margin front the current 12% kind of a number that we are having so that will be the 29:26 29 minutes, 26 seconds similar even for next two three years the iida margin yes we are confident on maintaining 29:33 29 minutes, 33 seconds similar level of iita and pack margins roughly you know iita between 11 to 12% and pack between 8 to 9%. 29:42 29 minutes, 42 seconds Okay. Okay. Great. And in terms of order inflow uh so uh this year obviously for 29:49 29 minutes, 49 seconds 206 2,700 2,800 cr that we have received. So in for this year how much we are we are looking at to to win. 30:01 30 minutes, 1 second So we are looking at further order inflows of uh roughly around uh you know around 4,000 to 5,000 crores is what we 30:11 30 minutes, 11 seconds are targeting that we should have this at the end of the year. 30:16 30 minutes, 16 seconds Okay. So and and currently just to understand further so currently the entire order move 3326 cr. So out of 30:25 30 minutes, 25 seconds that how much is in Gujarat and now what we are looking at 4 5,000 odd cr. So 30:32 30 minutes, 32 seconds will the Gujarat will continue to be up 70 75% of the in terms of the order inflow the same kind of a share or it will keep on uh reducing. 30:44 30 minutes, 44 seconds Uh so I think from audible perspective currently uh Gujarat is around 85 to 90 and the rest is outside uh Gujarat. We 30:52 30 minutes, 52 seconds are looking at we are very aggressively uh spreading uh uh doing projects outside bidding for projects outside uh 31:00 31 minutes Gujarat. So we think eventually this number will start moving towards 8020 uh in the near term. 31:08 31 minutes, 8 seconds Okay. Okay. Not much uh 5 10% kind of a but let's say 31:15 31 minutes, 15 seconds yeah. So given if you if we if we win four 5,000 K orders inflow for this year 31:22 31 minutes, 22 seconds and then obviously the similar number we will try to get for even FI28 then in 31:29 31 minutes, 29 seconds terms of growth then this 40% seems to be on the on the a very very 31:36 31 minutes, 36 seconds conservative side we should be then growing if given the 18 24 months kind of execution this number should be on on 31:44 31 minutes, 44 seconds the higher side the execution growth, revenue growth. 31:48 31 minutes, 48 seconds No, I think this number is what uh we plan to execute and the way we have the project deadlines mapped currently. So I wouldn't say it's conservative. I think 31:56 31 minutes, 56 seconds it's in well with what we are planning to execute in the next 2 three years. 32:01 32 minutes, 1 second Okay. Okay. And out of currently the entire order book, how much is the underground uh 3326 cr order book? How much would be the underground in that? 32:12 32 minutes, 12 seconds So basically we do not have any specific uh we usually look it as uh distribution and transmission. Uh we don't look as 32:19 32 minutes, 19 seconds underground versus overhead but roughly this number might be somewhere around underground might be somewhere around 70 32:26 32 minutes, 26 seconds 75% and rest would be uh substations and overhead. 32:33 32 minutes, 33 seconds Okay. Okay. Okay. Go. Okay. And in the the current BESS are we uh putting any 32:40 32 minutes, 40 seconds any equity and if yes how much equity are we putting in? 32:46 32 minutes, 46 seconds So I think uh we are working currently with our lenders. Uh I think in the same in the range of we'll do 70 to 80% 32:54 32 minutes, 54 seconds financing by the banks and rest would be equity by the company. 32:58 32 minutes, 58 seconds Uh so that will translate into absolute number would be how much equity I think we are determining the project 33:05 33 minutes, 5 seconds uh size currently uh as soon as we have a project size we'll have a much better number to share okay okay got it sir got it thank you 33:14 33 minutes, 14 seconds and all the best thank you thank you the next question comes from the line of Koshal Sharma from Equinox 33:22 33 minutes, 22 seconds Cap Capital Venture Private Limited please go ahead Hi sir very [clears throat] good evening. Am I audible? 33:31 33 minutes, 31 seconds You're very I think not audible that why is not clear? Hello. Am I audible? Am I audible now? Is it clear? 33:38 33 minutes, 38 seconds Yeah, it's clear. 33:40 33 minutes, 40 seconds Yeah. So my question is on working capital side like I can see that your table has significantly increased from 33:46 33 minutes, 46 seconds last financial year that that relate to your inventory and ECO that also increase significantly. So what is the 33:54 33 minutes, 54 seconds I do not understand your voice is not coming clearly. I I'm able to not understand the question. Hello. Am I audible now? Yeah. 34:02 34 minutes, 2 seconds Is it clear? Yeah, this is clear. 34:05 34 minutes, 5 seconds Yeah. So my question on your working capital side like I can see on your payable side it is increased significantly and it it funded your 34:13 34 minutes, 13 seconds inventory and receivable which also increased significantly. So what is the rational on increasing the paper because earlier is it is in 26 days now it is 34:22 34 minutes, 22 seconds become it has become around 50 days. So is it sustainable level or what is the key reason on that? So I think this year 34:30 34 minutes, 30 seconds has been uh very uh what you can say a good win for us at uh at Rajes Power where we have been able to negotiate uh 34:38 34 minutes, 38 seconds with our vendors for credit terms and I think that's what is getting factored in in the increase in creditors. 34:47 34 minutes, 47 seconds So is this level sustainable? 34:52 34 minutes, 52 seconds I think these levels are sustainable. So usually uh working capital cycle of 30 to 40 days is something which which is sustainable. It could be two three days 35:01 35 minutes, 1 second here and there but that's a number which we think uh we would uh that's how we manage our working capital sector. 35:07 35 minutes, 7 seconds And so what is the reason of spike in financial assets as well like uh 155 K in B25 and now it is 35 35:17 35 minutes, 17 seconds K almost 96% growth and what what component in this uh 35:24 35 minutes, 24 seconds I think I think in financial the what we show is the retention money uh is a part of that number. 35:31 35 minutes, 31 seconds So what is the percentage of retention money that we need to give retention would be retention would be around 35:40 35 minutes, 40 seconds so it's so at an absolute number uh it is around 10% so 10 so okay there are three layers to it so say so for few projects we have 35:49 35 minutes, 49 seconds 10% uh for few projects we would have around uh what you can say 30% and for few projects we'll have uh 20%. 35:58 35 minutes, 58 seconds And when will we get this back like what is the timeline? 36:01 36 minutes, 1 second So okay uh so on on on supply so there is a retention of 30 which we out of which we get uh 20 when we uh install 36:10 36 minutes, 10 seconds the thing and the last 10 when we commission the project we get that back against issuing of BG. 36:18 36 minutes, 18 seconds Okay. So is it interest bearing like you have to deposit it in that deed and also you get interest on that. It's just a BG BG commission cost is what we have to pay for it. 36:29 36 minutes, 29 seconds Okay. And my last question on your order book site like as you said 85 to 90% is Gujarat link and management also 36:37 36 minutes, 37 seconds consciously avoided distribution work outside Gujarat due to weaker discount payment cycle. So as you explained into risk 36:45 36 minutes, 45 seconds and what is the exact filter for choosing product projects client rating payment cycle retention terms BG 36:52 36 minutes, 52 seconds requirement voltage level and margin threshold so that the company doesn't dilute ROC while chasing non- Gujarat uh 36:59 36 minutes, 59 seconds group so basically yes correctly said that distribution we are focused towards Gujarat but in transmission we are 37:07 37 minutes, 7 seconds moving pan India in the sense that all the transmission state transmission utility ities are healthy. Uh they have good payment cycles and we yes we do 37:16 37 minutes, 16 seconds check the uh profile the you know every financial profile of every transmission utility that we associate with. So till 37:24 37 minutes, 24 seconds now where we have associated is Rajasthan uh and Uttarakhand where we have we are seeing very healthy payment 37:31 37 minutes, 31 seconds cycle and further also whatever pick and choose we are deciding to bid we are confident that uh there will not be any 37:39 37 minutes, 39 seconds any compromise on the margin profiles as well as compromise on the cash profile. 37:46 37 minutes, 46 seconds sir you are also looking at 96,000 cr of bin making get over the next 10 years and there is one scheme robot infrastructure scheme in Gujarat has 37:55 37 minutes, 55 seconds outlay of around 26,000 out of which 16,000 is still left so what kind of opportunity or tender are you expecting 38:02 38 minutes, 2 seconds that that would be floated in this year and overall dam that perenn basis that you are targeting uh in our segments 38:11 38 minutes, 11 seconds so uh you first I'll talk about jetco uh jet JCO has around 96,000 cr which is 38:18 38 minutes, 18 seconds divided into uh years. So right now Jetco has uh approximate capeex each year of around 10,000 cr. So 9,000 to 38:27 38 minutes, 27 seconds 10,000 cr out of which we see our addressable market is which is specifically underground cable and substations to be around 40 to 50%. So 38:36 38 minutes, 36 seconds four 4,000 4,000 cr what we are seeing from JCO and an addressable market of roughly 5,000 cr from the distribution 38:43 38 minutes, 43 seconds side of Gujarat that is what we are seeing and what about robust infrastructure scheme this distribution what I said 5,000 cr 38:53 38 minutes, 53 seconds is is a part of robust infrastructure scheme and my last question on your best side I sir like you have recently uh took an 39:01 39 minutes, 1 second order of 65 megawatt so what is the economics of this uh batch project and uh uh is it on build operation or 39:09 39 minutes, 9 seconds operation uh boom on boom or is it a etc like how will we recognize revenues over there? 39:17 39 minutes, 17 seconds I think uh in B uh BSS I think we're going to develop and we're going to own the infra and uh we'll be getting the 39:25 39 minutes, 25 seconds what you can say tariff rentals from the government what so this kind of project will continue 39:34 39 minutes, 34 seconds please join back please could you please join back sir 39:43 39 minutes, 43 seconds okay sure sir thank you thank Thank you. The next question comes from the line of Diva Gool from Shupam Ventures. Please go ahead. 39:56 39 minutes, 56 seconds Hi sir, thank you for the opportunity and uh congratulations on good set of numbers. Sir, I just wanted to ask u on 40:04 40 minutes, 4 seconds the previous particip participants question. Sir, how will we recognize uh revenue from BESS? Uh and 40:13 40 minutes, 13 seconds will we own the infrastructure and uh whether uh we'll be continuing these projects. 40:22 40 minutes, 22 seconds Okay. So I think uh first the revenue part I think revenue we have we are going to build to the utilities every monthly. This will start after September 40:30 40 minutes, 30 seconds 2027 or maybe Q1 of 207 where we have commissioned the entire project. uh monthly invoice, monthly rental which we have already stated and disclosed. 40:39 40 minutes, 39 seconds That's what we're going to build to the client every month. So that is very simple. Uh as far as the projects about the strategy as we discussed uh the idea 40:48 40 minutes, 48 seconds of this BSS project was to understand the entire uh ecosystem of the BSS so that uh we can bid higher and more 40:56 40 minutes, 56 seconds strongly in the BS ETC projects and what would be the cost of the project and uh the IR if possible. 41:06 41 minutes, 6 seconds So I think we are targeting an IR of uh same 10 to 12% uh in this project. The cost of the project is dependent uh on 41:15 41 minutes, 15 seconds the entire uh all the cost components. I think our team will be visiting China and we have a better quotes and idea on 41:21 41 minutes, 21 seconds the cost uh once we finalize the vendor of batteries. [clears throat] Okay sir. Thank you so much. 41:30 41 minutes, 30 seconds Thank you. 41:35 41 minutes, 35 seconds Thank you. The next question comes from the line of Andre Puroam from Kogito Advices. Please go ahead. 41:43 41 minutes, 43 seconds Yeah. Hi sir, congratulations for a great set of numbers. Uh I had three questions. The first question was an elaboration of what was previously asked 41:52 41 minutes, 52 seconds on your employee expenses. I can understand that you're having some scale economies and all that but the absolute amount of your employee expenses 42:00 42 minutes actually went down in a year where your volumes went up. So in a half year where your volumes went up. So I didn't understand that. Could you just explain that? Okay. 42:10 42 minutes, 10 seconds I'll just ask. Uh thank you Andre. I'll just ask uh yeah so uh Andrew uh uh so for the if 42:20 42 minutes, 20 seconds you if you look at it the entire cost of execution the projects which is the bigger part or the lower level of the part that's a part of our cost of goods 42:29 42 minutes, 29 seconds goods and services. So that's what it is the employee expenses all our corporate offices supervisors project managers and that team. So that is of course will rationalize over more projects. 42:43 42 minutes, 43 seconds Yeah. That still doesn't answer my question. Okay. How do you have a lower absolute amount of employee expenses with a higher volume? 42:54 42 minutes, 54 seconds Sorry. 42:56 42 minutes, 56 seconds How do you have an absolutely absolute reduction in employee expenses with increased volume of sales? It doesn't answer that question. 43:07 43 minutes, 7 seconds Sir, sir, employee cost has increased from 43 cr to 59 cr. 43:14 43 minutes, 14 seconds So if you look at from what I remember from your console results your employee expenses for uh the 43 43:24 43 minutes, 24 seconds not sir the in fi 25 the employee cost is 43.90 cr which has increased to 59 cr in 43:33 43 minutes, 33 seconds fi 26 for the full year I'm talking about the half year comparison 43:41 43 minutes, 41 seconds half year changing anyway let me get to My second question, my second question is that um uh in terms of uh uh you 43:50 43 minutes, 50 seconds talked about the revenue mix from non- Gujarat Rajasthan perhaps coming down to uh going up to 20% from the outside 43:58 43 minutes, 58 seconds Gujarat. So can you just give us an update on what is happening on your uh states outside Gujarat and Rajasthan? 44:06 44 minutes, 6 seconds Uh sure. So basically we are trying to expand our transmission footprint which is mainly underground cable uh up to 220 44:14 44 minutes, 14 seconds KV and uh GIS substations up to 400 KV footprint uh taking our experience from 44:22 44 minutes, 22 seconds Gujarat and uh uh Rajasthan two other states. So as of now we are actively pursuing opportunities 44:30 44 minutes, 30 seconds uh absu of course in Rajasthan. Uh we are also pursuing active opportunities in Maharashtra where we are having huge 44:37 44 minutes, 37 seconds underground cable and substation GIS substation projects in uh the next 6 months. We are actively pursuing the 44:45 44 minutes, 45 seconds state of Orisa where we are having huge 132 and 220 KV cable projects as well as GIS and EIS substation projects up to 44:53 44 minutes, 53 seconds 400 KV. We are also pursuing Jarken where there are very good cap the state transmission utilities investing very 45:00 45 minutes heavily uh the capeex on uh substation substation portion. So we are targeting opportunities across these states. 45:11 45 minutes, 11 seconds So, and what time frame do you expect to uh uh I think in the next uh in the next in 45:18 45 minutes, 18 seconds the next 8 months roughly 8 8 to 10 months we should see some action on the order book of outside Gujarat. 45:27 45 minutes, 27 seconds Okay. And my last question is that in a small fraction of your uh um order I think particularly in Rajasthan there 45:35 45 minutes, 35 seconds were some terms of business which was favorable to your working capital deployment and and basically reduced your working capital deployment. Now uh 45:44 45 minutes, 44 seconds is is that an increasing trend or um uh or is business still requiring the same 45:50 45 minutes, 50 seconds amount of work capital? Uh no it it is it is an increasing trend. 45:56 45 minutes, 56 seconds uh it it is actually an increasing trend in the sense that Orisa and other states have also seen this and have also started implementing the insurance shity 46:05 46 minutes, 5 seconds bond uh clause in the tender. But so uh currently in your order book what 46:13 46 minutes, 13 seconds proportion of your order book comes under insurance bond very minor portions whatever we are 46:21 46 minutes, 21 seconds working outside Gujarat uh okay so around you know 8 8% to 10%. 46:29 46 minutes, 29 seconds Okay. 46:33 46 minutes, 33 seconds It will increase day by day. People have been pushing uh the usage of insurance 46:40 46 minutes, 40 seconds shity bonds because practically blocking cash of contractors is uh unfavorable business makes it unfavorable business 46:49 46 minutes, 49 seconds environment as well. And insurance shity bond guarantee equal amount through a very minuscule investment. 46:58 46 minutes, 58 seconds Okay, thanks. That's all from my friend. Thank you. Thank you. Thank you. 47:06 47 minutes, 6 seconds The next question comes comes from the line of Moit Aurora from H Securities. Please go ahead. 47:14 47 minutes, 14 seconds Thanks for the question. Uh sir, we can see that your MSN payable has increased from 5 to 87. So are you within 45 days? 47:25 47 minutes, 25 seconds uh with uh and the receivables doubling and payable getting 2.5x. So uh and we 47:32 47 minutes, 32 seconds can see that yeah there is lot of disturbances in the background. Uh hello is it audible? 47:44 47 minutes, 44 seconds It's audible but there's some disturbances in the background. Yeah. Uh is it better now? 47:50 47 minutes, 50 seconds Yeah it's better. So uh we can see that uh MSME payable has rose from uh 5 cr to 47:56 47 minutes, 56 seconds 87 crores. So I am asking are these under 45 days payment mandate. Uh and the other question is that our 48:05 48 minutes, 5 seconds receivables is getting double payable is getting up 2.5 lakh. So and the short-term borrowing has also increased 48:11 48 minutes, 11 seconds from 29 cr to 82 cr. So which clearly indicates that there is a working capital stress. So how will you 48:18 48 minutes, 18 seconds normalize all this thing? No, I think uh if you ask us from a cash stress for working capital, we don't see that 48:26 48 minutes, 26 seconds stress on our books. I think what we were able to uh manage this time from ctors is that from an advanced payment for creditors to we have started getting 48:35 48 minutes, 35 seconds credit terms from them for up to 30 days. So that has been one positive win for us uh while managing our uh what you can say business. I think the only spike 48:44 48 minutes, 44 seconds which you see which is uh say the datas getting moved to around 78 days as I as we discussed that's mainly because of a 48:50 48 minutes, 50 seconds very high bullet kind of a invoicing in the month of uh March uh the more rational the more uh what you can say 48:59 48 minutes, 59 seconds the billing becomes uh evened out these numbers will again fall back to the genuine around 60 [clears throat] days for dattors uh maybe a good some good 49:08 49 minutes, 8 seconds improvement traitors uh where we are able to stretch them and inventories keep inventory keeps moving moving in. 49:13 49 minutes, 13 seconds So I think there's no stress on the working capital. Uh uh we are well uh positioned to manage the entire business in this 49:22 49 minutes, 22 seconds and on this MSMA side that we uh we are having 87 crores of outstanding. So are these are within 45 days payment mandate? 49:31 49 minutes, 31 seconds Sir, we have a specific agreement with these parties and we are okay with the payment terms of more than 44 days being 49:38 49 minutes, 38 seconds how many percentage of this 87 crores are uh like agreed for more than 45 uh days of payment? 49:45 49 minutes, 45 seconds All all sir all all whoever has not agreed we have released their payment within 45 days only sir. 49:53 49 minutes, 53 seconds Okay. And uh in the previous call you mentioned that uh you are targeting to get uh to close the order book uh of 50:01 50 minutes, 1 second 4500 cr by the end of FI26 but uh now we can see that uh there is a shortfall in that so what led to that shortfall 50:10 50 minutes, 10 seconds I think there is no shortfall I think it's just the uh tender results are not out so the so whatever we are targeted we had bid in Q4 it's just that the 50:19 50 minutes, 19 seconds results are taking time to get out uh if you consider the order yeah it's a time issue It's not a target issue or any slowing down issue or 50:27 50 minutes, 27 seconds something and okay thanks and uh could you please explain the margin profile in the transmission segment and the 50:34 50 minutes, 34 seconds distribution segment uh as the overhead cost absorbs better in transmission. So are there a better margin in transmission? 50:43 50 minutes, 43 seconds So looking at uh every perspective of you know the bid and uh the project uh 50:50 50 minutes, 50 seconds of course there we need uh more manpower to manage the distribution projects compared to transmission projects but 50:56 50 minutes, 56 seconds from what we operate currently we are seeing uh an uh a same margin profile both for transmission and distribution 51:05 51 minutes, 5 seconds projects. So we are not seeing any more uh any big change in the paring profiles of both the businesses and and you said 51:13 51 minutes, 13 seconds that you have I'm very sorry to interrupt you. Could you please join back with you? Okay sure. 51:19 51 minutes, 19 seconds Thank you. Next question comes from line of Pushkar Jane from Millie Capital. Please go ahead. Yeah. Am I audible? 51:28 51 minutes, 28 seconds Yes. 51:29 51 minutes, 29 seconds Yeah sir. Yeah, I just wanted to know out of the 3,600 K order book or 3,300 K order book, how 51:37 51 minutes, 37 seconds much is fixed and how much is you know has the price escalation clause and uh what will be the duration lag for the price escalation to kick in. 51:47 51 minutes, 47 seconds So uh I think all our uh projects are covered by the price escalation clause for most of the items. That's the reason that we saw a lot of aluminium copper 51:56 51 minutes, 56 seconds prices going up in uh Q3 Q4 but still our margins remain intact. So I think uh it's completely moves back to back as 52:04 52 minutes, 4 seconds soon as the supply happens at a bigger price. The same time we also invoice to our customers uh with the new price. So 52:11 52 minutes, 11 seconds I think there's no time left and that's how we are protected from market uh for any price variations. 52:19 52 minutes, 19 seconds Okay. So basically everything is virtually back to back. There is no lag. Correct. 52:25 52 minutes, 25 seconds Right. And sir, you can tell me what is the attrition rate among our EHV cable jointers? Uh not the overall headcount, 52:33 52 minutes, 33 seconds just the those uh specific or GIS commissioning engineers. 52:40 52 minutes, 40 seconds So attrition rate uh we can proudly say that we have the one of the lowest attrition rates in the uh industry. the 52:48 52 minutes, 48 seconds cable jointers that have been with us since 2002 and three are uh still with us and are in fact training the next 52:56 52 minutes, 56 seconds generation uh that we hire new uh to become the jointer. So hardly probably 53:02 53 minutes, 2 seconds you know 2% attration or 3% attrition would be there but not more than that not major. 53:09 53 minutes, 9 seconds Oh wow great to hear. Thank you so much. Thank you. 53:15 53 minutes, 15 seconds Thank you. The next question comes from the line of Vishuenda Singh from Prudent Equity. Please go ahead. Hi sir, I'm audible. 53:24 53 minutes, 24 seconds Yes. 53:25 53 minutes, 25 seconds Uh sir, I wanted to ask what is the current L1 position in the negative order book. 53:37 53 minutes, 37 seconds So I think uh the L1 position in the current uh order. 53:41 53 minutes, 41 seconds Yeah. Uh the uh what do I say? The L1 order book in the current order book which you already stated would be around 210 crores uh L1 status. 53:52 53 minutes, 52 seconds Okay. And this was somewhere around 900 cr including taxes like in H1 concourse right 53:59 53 minutes, 59 seconds H1 808. Yeah I think 8008 is what I remember the order which we had stated like somewhere around 900 K including taxes. 54:07 54 minutes, 7 seconds We are not now not using taxes to uh avoid confusion among anyone. So we just talk about pre-tax number only. 54:14 54 minutes, 14 seconds Okay. And also the uh I saw that there was a slight decline in the share of profit of loss of uh like associates and 54:23 54 minutes, 23 seconds joint venture. So any major reason behind that? 54:27 54 minutes, 27 seconds So basically uh the billing that was scheduled to happen uh was shifted because uh there was uh there was issues 54:35 54 minutes, 35 seconds regarding site readiness by the customer. So we were the project that we were uh aiming to commission by February 54:42 54 minutes, 42 seconds March we we had to shift it to you know a couple of months further. So that is the reason there is a slight decline but 54:50 54 minutes, 50 seconds uh we are confident of it getting back over the next year. Okay, just a quick confirmation. Who holds the uh rest of 54:58 54 minutes, 58 seconds the 75% of that uh enterprise the HKRP solution uh innovation? 55:06 55 minutes, 6 seconds I'll just ask Miss Nikita to answer that question. 55:09 55 minutes, 9 seconds Yes. So uh another group is Har groupa automation private limited family and the remaining 25% is with the Rajes 55:17 55 minutes, 17 seconds Power Promoters only and remaining 50% is by Harpa group of families and their promoters. 55:24 55 minutes, 24 seconds Okay, got it. And uh I wanted to ask uh what is the bid like you have mentioned bids awaiting results. So can you shed some light what is this category like? 55:34 55 minutes, 34 seconds Are we announced L1 in this or what is how do we see this? 55:40 55 minutes, 40 seconds No, basically uh those are tenders that we have applied for and we are awaiting results that we bid in Q1 Q4 sorry. 55:50 55 minutes, 50 seconds Okay. So is it fair to assume that the total bid will you please join back with you sir? 55:57 55 minutes, 57 seconds Sure. 55:59 55 minutes, 59 seconds Thank you. Next question comes from the line of Umang from Invest in Analytics Advisory LLP. Please go ahead. 56:08 56 minutes, 8 seconds Hello. Uh am audible. 56:11 56 minutes, 11 seconds Yes. Uh thanks for the opportunity and congrats for a good set of numbers. Uh just one question on the order inflow. 56:18 56 minutes, 18 seconds uh last time when we interacted uh I think you have highlighted that this year we will be closing around 4500 cr order book uh now we are sitting at 56:26 56 minutes, 26 seconds 3,300 so can you explain the reason for it why uh there is a gap 56:33 56 minutes, 33 seconds sir as previously explained uh uh the 2200 order book which we already in Q4 of 26 we are just getting results of it 56:41 56 minutes, 41 seconds if the results would have been received I think that number would have been fairly achieved Okay, understood, understood. Okay, thank you. Uh that's it for my bit. 56:54 56 minutes, 54 seconds Thank you. The next question comes from the line of VOIA from CFM. Please go ahead. 57:02 57 minutes, 2 seconds Thanks for the opportunity. I wanted to understand what is the targeted closing order book for FI27. 57:10 57 minutes, 10 seconds I think they're targeting somewhere above 5,000 crores of order book for FI27 closing above 5,000 crores. Okay. Understood. 57:20 57 minutes, 20 seconds And uh lastly, you said that the subsidiary PL would be contributing back again like previously. So like uh 57:27 57 minutes, 27 seconds previous year for FI26 it was 9.75 crores. So what can we expect in FI27 for this? 57:33 57 minutes, 33 seconds Uh so SK is an associate. uh I think uh the way the billing will happen I think we'll have much better idea in uh we at 57:41 57 minutes, 41 seconds the H1 numbers where we'll be able to tell how the projects have progressed for the associate and accordingly we'll know what will come to our company 57:51 57 minutes, 51 seconds okay okay and one more thing come what is the amount collected out of the 30 57:56 57 minutes, 56 seconds 348 crores of receivables till now almost almost one 150 crores has been received. 58:07 58 minutes, 7 seconds Okay. Okay. Thank you. Thank you. 58:13 58 minutes, 13 seconds Participants are requested to restrict to two questions in the initial round and join back the queue for more questions. 58:22 58 minutes, 22 seconds The next question comes from the line of Vine Lakra from Ratna Ratnara Capital. Please go ahead. 58:29 58 minutes, 29 seconds Hello. 58:31 58 minutes, 31 seconds So hello. Am I audible? Yes. Yes, you are. 58:35 58 minutes, 35 seconds Yeah. Yeah. Actually, I just wanted to know the split in the order inflow as well. Like L1 part in the order inflow. 58:44 58 minutes, 44 seconds Sorry. 58:46 58 minutes, 46 seconds So, uh I wanted to know the L1 part in the order inflow. So, order inflow was around 2,743 cr. Right. Correct. 58:53 58 minutes, 53 seconds So, does it include the L1 L1 as well? 58:57 58 minutes, 57 seconds No. No. So, so what was uh what was L1 uh at as at the order book of September 30th were already converted into 59:05 59 minutes, 5 seconds confirmed orders right which for which we have already made the disclosures. So I think at if you're looking at 2700 uh 59:12 59 minutes, 12 seconds number uh only 200 crores is what is L1 right now as I mentioned rest everything has been confirmed or so 59:19 59 minutes, 19 seconds okay so uh this like if we add up all uh if you add up all the numbers in the press release this should this should get into 2,700 using 59:27 59 minutes, 27 seconds sorry so uh in press release you give orders right so that is including GST the order 59:35 59 minutes, 35 seconds number the in in value in crst including GST then I think the order what the numbers we are talking now are all excluding GST 59:43 59 minutes, 43 seconds yeah yeah but I'm saying like when the in the press release the order number which we give is including GST right the value 59:51 59 minutes, 51 seconds so so basically uh the so whatever results we whatever announcements we make we specifically mention whether it's including GST or excluding GST so I 1:00:00 1 hour think uh because we have a backto-back tender with GST we usually mention that number but we specifically disclose it that it is a GST 1:00:08 1 hour, 8 seconds Okay. So this 2743 is the uh actual order in this exactly what is exact number which will convert to revenue. 1:00:18 1 hour, 18 seconds Okay. Fine. And on the B is billing uh how do we expect to build is it going to 1:00:25 1 hour, 25 seconds be like uh I mean we are my understanding around 100 to 120 crores. So what is the 1:00:34 1 hour, 34 seconds annual billing that we expect starting from 2 to September April 27? Sir your voice was cracking in between. 1:00:42 1 hour, 42 seconds What can you just uh frame your question again? Yes. 1:00:46 1 hour, 46 seconds Yeah. Uh so on the BS project I think my calculation says we are investing around 1:00:53 1 hour, 53 seconds 100 to 120 crores in that project. Uh how how much would be the annual billion starting from September 27 that we 1:01:00 1 hour, 1 minute expect? So I think uh as it said uh it's 1.89 uh lakh per megawatt. So now if you 1:01:09 1 hour, 1 minute, 9 seconds if you'll multiply with 130 that's the number you'll get for monthly invoicing and if you multiply by 12 that's the number you so around 14 crores 2 15 1:01:18 1 hour, 1 minute, 18 seconds crores a year is what we're going to build under the BSS project and what will be the cost of these revenues would there be any cost to 1:01:26 1 hour, 1 minute, 26 seconds these revenues in terms of opex or nothing? I think open very minor. 1:01:33 1 hour, 1 minute, 33 seconds So this would be almost like a rental income, right? This is close to the top 10. Correct. 1:01:40 1 hour, 1 minute, 40 seconds Yeah, it's it's close to kind of a rental income kind of a Okay. 1:01:46 1 hour, 1 minute, 46 seconds Got one last question on the distribution side. You said from Jetco every year it 1:01:55 1 hour, 1 minute, 55 seconds is five 5,000 crores opportunity but are we 1:02:02 1 hour, 2 minutes, 2 seconds do we totally uh that 5,000 crores entirely is in our opportunity set or only a certain portion would be there in 1:02:10 1 hour, 2 minutes, 10 seconds our opportunity I think the entire 5,000 which we have mentioned is the addressable uh size for us 1:02:18 1 hour, 2 minutes, 18 seconds okay fine thank Thank you. The next question comes from the line of Jay Bora from Storo Investment Advisor. Please go ahead. 1:02:29 1 hour, 2 minutes, 29 seconds Thank you. So, yeah, thank you so much for this opportunity and congratulations on a different set of numbers. U my first question is regarding the manpower 1:02:39 1 hour, 2 minutes, 39 seconds as you kind of go on to scale the business with 40% uh revenue growth guidance that you looking at in the 1:02:46 1 hour, 2 minutes, 46 seconds medium term. um how are you going to deal with the manpower piece of it? Will it proportionally increase and uh in the 1:02:55 1 hour, 2 minutes, 55 seconds near term because of the West Asia war uh and the LPG impact are you kind of seeing uh issues with manpower and issue 1:03:04 1 hour, 3 minutes, 4 seconds in execution. So if you could talk about that. 1:03:08 1 hour, 3 minutes, 8 seconds So basically uh majority of our projects are the uh 1:03:15 1 hour, 3 minutes, 15 seconds sidebased projects in the sense that uh we have labor camps that are stationed near the site. So as of now or in the 1:03:24 1 hour, 3 minutes, 24 seconds near future also we are not facing any labor shortage issue in the sense of LPG. The situation that we are seeing 1:03:31 1 hour, 3 minutes, 31 seconds has normalized and we are we we are not facing any issues because we have labor tie-ups very good labor tie-ups with various agencies. 1:03:41 1 hour, 3 minutes, 41 seconds Okay. 1:03:43 1 hour, 3 minutes, 43 seconds and and as you scale more importantly like you said this is a temporary thing which you manage but as you continue to scale 5,000 crores of order inflow that 1:03:52 1 hour, 3 minutes, 52 seconds you're looking at FI 27 and similar levels in SI 28 if not more how are you planning to scale beyond a point because 1:04:00 1 hour, 4 minutes it might become a challenge so what's your sort of thinking behind that so for cable laying perspective we are 1:04:07 1 hour, 4 minutes, 7 seconds also exploring some automation techniques like automated cable winch machine and uh things like that. So we 1:04:14 1 hour, 4 minutes, 14 seconds are exploring uh some some some part of that but obviously uh rest uh will have to be manual. So uh we we we don't think 1:04:23 1 hour, 4 minutes, 23 seconds that there will be any challenge of labor uh around that around the range that we have committed we'll be working. 1:04:31 1 hour, 4 minutes, 31 seconds Okay. My second question is regarding sourcing of the materials whether it is the RMU units or whether it is transformer given the kind of tailwind 1:04:39 1 hour, 4 minutes, 39 seconds that is there right now the supply is very constrained and we've been hearing from multiple stakeholders that it's a sellers market. So given that uh issue 1:04:49 1 hour, 4 minutes, 49 seconds as you continue to scale the business um how are you going about uh managing uh you know the supply chain piece of it so 1:04:58 1 hour, 4 minutes, 58 seconds that uh you can timely uh execute the uh order book that you have. 1:05:03 1 hour, 5 minutes, 3 seconds Yes. So I think procurement is one of our strong arms of the company. The main reason being that we are procuring all 1:05:11 1 hour, 5 minutes, 11 seconds the materials in bulk. So we have a line of vendors that uh uh that are gathered with us to supply the material before 1:05:20 1 hour, 5 minutes, 20 seconds time. So as of now or in the near future also we we are working on a very good uh I mean the capacity that we are 1:05:29 1 hour, 5 minutes, 29 seconds consuming in the capacity manufacturing capacity that the industry has uh there is a very very comfortable gap. So we 1:05:36 1 hour, 5 minutes, 36 seconds don't think there will be any challenge related to this. 1:05:40 1 hour, 5 minutes, 40 seconds Okay. and and in terms of competitive intensity whether it's the orders that you seek in Gujarat whether it is transmission or uh relating to the 1:05:49 1 hour, 5 minutes, 49 seconds distribution or it's the new states that you're targeting in transmission if you could provide a flavor of what is the number of competitors that you have in a 1:05:57 1 hour, 5 minutes, 57 seconds bid and uh how intensive is it getting probably let's say versus FY2 1:06:05 1 hour, 6 minutes, 5 seconds versus now given that you know uh uh things are really picking So competitive intensity yes the it does 1:06:14 1 hour, 6 minutes, 14 seconds increase but uh we we should understand that we are carrying out a specialized nature of work that is underground cabling or GIS substations. So there are 1:06:22 1 hour, 6 minutes, 22 seconds very few uh qualified players in this segment and uh yes roughly one or two players each year we are seeing an 1:06:30 1 hour, 6 minutes, 30 seconds increase of one or two players each year in both the segments but uh even after that there is there are plenty of opportunities. So uh there is there is 1:06:40 1 hour, 6 minutes, 40 seconds competition but at the same time the entire addressable market uh has increased significantly. So uh we are uh 1:06:47 1 hour, 6 minutes, 47 seconds we we are seeing around you know in distribution segment there are uh four to five to six competitors and in 1:06:55 1 hour, 6 minutes, 55 seconds transmission segment there are three to four uh competitors in in an in an average bit. 1:07:02 1 hour, 7 minutes, 2 seconds Okay. Okay. And my last question is do you have any aspirations to go beyond 1:07:08 1 hour, 7 minutes, 8 seconds the 220 KV class? I mean uh for uh so you've got specialization in NBCC but 1:07:16 1 hour, 7 minutes, 16 seconds going forward how 765 KV is going to continue to increase uh are you planning 1:07:23 1 hour, 7 minutes, 23 seconds to find out more pockets like best for example more pockets where it's a niche and it could be high profile margin in 1:07:30 1 hour, 7 minutes, 30 seconds nature. So just a few thoughts around that how are you kind of looking at it? 1:07:34 1 hour, 7 minutes, 34 seconds Yeah, sure. So, basically we have expanded in fact beyond 220 KV where we ventured into a 400 KV GIS segment uh 1:07:43 1 hour, 7 minutes, 43 seconds with a private company in Gujarat where we'll be commissioning the project in approximately September to October range. After commissioning the project, 1:07:50 1 hour, 7 minutes, 50 seconds we can proudly say that we'll be one of the few uh very few paper players in the country having commissioned a 400 KV GIS 1:07:58 1 hour, 7 minutes, 58 seconds which will again give us a benchmark to uh to participate or to look for opportunities in the 765 KV segment as 1:08:06 1 hour, 8 minutes, 6 seconds well as if you see MVCC segment medium voltage covered conductor is one of the largest success stories of uh Gujarat. 1:08:14 1 hour, 8 minutes, 14 seconds So that model where we have executed more than we are under execution of more than 51,000 kilometer of MVCC large one of the largest in the entire country. 1:08:24 1 hour, 8 minutes, 24 seconds Other states are also seeing this example and trying to implement them. So of course we are seeing a very huge opportunity in MBCC segment. So and and 1:08:32 1 hour, 8 minutes, 32 seconds yes, Bess also uh it's a niche relatively niche segment that is why we as we said earlier we are targeting best 1:08:39 1 hour, 8 minutes, 39 seconds EPC uh projects in the near mid to near future. 1:08:45 1 hour, 8 minutes, 45 seconds So shouldn't this improve margin if you're looking at niche projects and if you're looking at something that's very iterative in nature u and especially 1:08:52 1 hour, 8 minutes, 52 seconds states see new states see that you already have a such a track record. I I fail to understand why the margins would be just around 11 to 12%. 1:09:01 1 hour, 9 minutes, 1 second So what we are committing is uh not a decrease in margin but a stabilized margin. That is what we are able to commit right now. 1:09:10 1 hour, 9 minutes, 10 seconds All right. Got it. Best wishes. Thank you so much. Thank you. 1:09:16 1 hour, 9 minutes, 16 seconds Thank you. Due to time constraints that was the last question for the day. I would now like to hand over the floor to Mr. Utanchel for closing comments. 1:09:28 1 hour, 9 minutes, 28 seconds So thank you everyone on behalf of the management of Rajespar Services Limited. 1:09:32 1 hour, 9 minutes, 32 seconds We thank you all for joining us on our post earnings call today. Uh we hope we have been able to address majority of 1:09:40 1 hour, 9 minutes, 40 seconds your queries. You may reach out to me or our investor relation partner Ernstyang for any further queries that you may 1:09:48 1 hour, 9 minutes, 48 seconds have and they they would connect with you offline. Uh moderator we can now close the call. Thank you all. 1:09:56 1 hour, 9 minutes, 56 seconds Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using those busas conference 1:10:04 1 hour, 10 minutes, 4 seconds call service. You may disconnect your lines now. Thank you and have a pleasant day.