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HG Infra Engineering Ltd
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Good morning, ladies and gentlemen. Welcome to the Q1 FY '23 Post Earnings Conference Call of H.G. Infra Engineering Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Smit Shah. Thank you, and over to you, sir.
Good morning, everyone. This is Smit Shah from Pareto Capital. We represent Investor Relations for H.G. Infra Engineering Limited.
On behalf of H.G. Infra, I welcome you all to our Q1 FY '23 earnings conference call. I have with me from the management, Mr. Harendra Singh, Chairman and Managing Director; Mr. Rajeev Mishra, Chief Financial Officer; Mr. Sanjay Bafna, Group Finance and Accounts Head. We will have a brief opening remarks from the management, followed by a Q&A session.
Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to certain risks and uncertainties that could cause our actual results or projections to differ materially from those statements. H.G. Infra will not be in a way responsible for any actions taken based on such statements and undertakes no obligation to publicly update these forward-looking statements.
I would now like to hand over the call to Harendra ji for his opening remarks. Over to you, sir.
Yes. Thank you, Smit. Good morning, everyone. I welcome you all to our first quarter FY '23 earnings conference call. This year marks our fifth ongoing year of being listed on the Indian stock exchanges and interacting with you all. We believe that we have come a long way in terms of our business performance, and I am proud of my team for this feet. Additionally, I am proud of the credibility and transparency we have established amongst investors and analysts, and we look forward to your continued support. At H.G., our focus has always been on profitable growth, lean balance sheet, strong internal processes, and we will continue to build on this.
It gives me pleasure to say that we have touched revenue of INR 1,065.7 crores in first quarter of FY '23, which is all-time highest number of any quarter until now, with an EBITDA at 15.2% and PAT margin of 9.2%.
During the quarter, we received a new EPC order worth INR 4,971 crores, which is inclusive of GST from Adani Group to develop a 6-lane access controlled expressway, but that is called Ganga Expressway in the state of Uttar Pradesh. And the work on it has already been begun. Taking the above orders, our total order book stood at INR 11,508 crores as on 30th June 2022. Out of the total order book, 64% are EPC contract and 36% are HAM projects. These orders gives us strong visibility of revenues for the next 2, 3 years.
As I can just give an idea of the size of the project, it is important to share with the forum that there has been paradigm shift in the magnitude of average ticket size of projects under execution in the entire order book. Currently, we are at 20 projects under execution, out of which 7 projects has already got PCOD and only a small portion of work is left out in these projects. Apart from this, there are 13 high-value projects, which are in execution with an average size of INR 900 crores, which was around INR 200 crores a few years back, thus, bringing back better operational efficiency, cost optimization with better control and governance of these projects, which will eventually result in a better margin in these projects.
Now, coming to a few project updates. During the first quarter of financial year, we have achieved financial closure of our Raipur-Visakhapatnam OD-6 package. That is on 5th of May and received the appointed date of our Raipur-Visakhapatnam OD-5 and 6, both the packages on 30th of May and 1st of June, respectively.
Coming to progress of major EPC projects, it gives us the immense pleasure to inform you that we have received completion certificate for Delhi-Vadodara (PKG-4) on 1st August with the [ platform ] 26 June 2022. We are pleased to inform that execution has completed in Hapur-Morradabad of IRB. This project has already received the completion certificate from competent authority. And shortly, we would be shoot the same. In Delhi-Vadodara (PKG-8), we have made good progress and have completed around 84%. And the Delhi-Vadodara again in (PKG-9), we have completed around 73%. In the Mancherial project of Adani, we have completed around 70%. In the EPC project, we have received on 28th of October last year, Karala-Kanjhawala, that is a Delhi UER-2, we have completed 14%. In Nelamangala-Tumakuru project, post signing of the agreement in May 2022, we expect appointed date by end of August. So this is all about the EPC projects.
Coming to our HAM projects under execution, which are also progressing well as per the scheduled time line. In the Rewari Bypass HAM project, we have completed around 74%. In Raipur-Visakhapatnam, that is AP-1, we have completed 10%. In 2 of the HAM projects of Raipur-Visakhapatnam corridor, that is Orissa PKG-4 and 5, we started the work in the current quarter, and we completed around 5% and 6%, respectively. In Khammam-Devarapalli PKG-1 and 2, we have received the financial closure of KD-2, that is on 20th of July 2022, and we are going to sign the contract agreement of KD-1 very soon. We have initiated the work on these packages and the progress will further fast track from the third quarter onwards. For the HAM projects, we have a total equity requirement of INR 1,137 crores, that is projected until FY '25. Of this, total amount we have already invested INR 529.5 crores as on June '22, and we project to invest INR 286 crores in this remaining financial year, that is FY '23.
Before I share the outlook and the guidance with you, I would like to hand over the call to our CFO, Rajeev Mishra, to touch upon the financial highlights. Over to you, Rajeev.
Thank you, sir. Good morning to all of you. Let me highlight on the financial performance for this quarter ended June 2022. Our endeavors to strengthen our balance sheet continue to remain our focus. For this quarter, stand-alone revenue stood at INR 1,065.70 crores, a growth of 16.6% as compared to INR 913.6 crores in Q1 FY '22. We reported a growth of 8% in our EBITDA, which stood at INR 162.5 crores compared to INR 150.4 crores in corresponding previous quarters. Profit after tax for the quarter stood at INR 97.60 crores, a year-on-year growth of 9.8%. Our consolidated debt stood at INR 1,406 crores, which includes project loans of INR 959 crores. Cash and bank balance on the consol level stood at INR 16.9 crores.
This is all from my side in brief. I will now request Harendra sir to -- further remarks on the future business guidance. Over to you, sir.
Thank you, Rajeev. So we are very positive on the sector outlook and the opportunities. Numerous initiatives including National Infrastructure Pipeline, Gati Shakti program has an increase in the budgeted allocation for infrastructure spending, et cetera, will give a thrust of this -- to this sector and the [indiscernible] opportunities to players like us. We at H.G. are readying ourselves for the next level of growth through various steps. We have continued to build our robust business model, having complete integration in operations, along with a large fleet of in-house equipment and skilled human resource. We are investing heavily on digital initiatives to make our system more robust. We are confident in times ahead as guided earlier to achieve INR 5,000 crores of revenue, while maintaining 15.5% to 16% range of EBITDA margin for the financial year FY '23.
As far as order is concerned, a key focus ahead would be to winning selective projects that complement our order book and ensure efficiencies. Our goal is to achieve guided number as INR 9,000 crores to INR 10,000 crores order inflow in this financial year.
Now, I would like to -- like the moderator to open the floor for question-and-answer. Thank you.
[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.
And congratulations on another stellar performance. Sir, my first question is, do you maintain the guidance of INR 50 billion of revenue and order inflow of INR 100 billion for the fiscal year? And does the decline in inflation improves your outlook on margin?
See, we have already received the order of around this INR 4,450 crores from Adani. That is excluding of GST. So with that, we are having almost 8 months going ahead and with NHAI and they are having a strong bidding pipeline, we expect that another INR 5,000-odd crores of order can be added during this next 8 months. And guided as per the revenue, which we already have taken into our consideration that most of the orders are under execution in quarters to only we are likely to get 2 more appointed dates of Ganga Expressway and this Tumakuru project. With that, we -- it gives us the visibility and confidence that we will be touching upon around INR 5,000 crores of turnover.
As far as the margins are concerned, we would be in the same range, coming back to our normal range, because the commodity price hit, which really has impacted in quarter 3 and quarter 4 of last year and now in quarter 1 as well, we experienced the same. But now there has been significant relief in the steel prices and other commodity prices, which, again, we can expect in quarter 3, 4 onwards, we would be coming on the track about 15.5% plus, like 16%, 16-plus margin.
Secondly, on this, sir, on the monetization of our [ AGM ] portfolio, I think roughly around 4 of our assets are coming to -- closer to physical completion. Is there some update which you can share or some outlook that we'll be able to close the monetization by the end of the fiscal, leading to some strategic investor?
Yes. Of course, I think the discussions are all with the 3 of the potential good funds, and we believe that the discussion is at a very advanced stage. We expect that by the end of this financial year, this entire projection can happen.
Sir, are you looking for selling this stake or is this just more like a portfolio kind of approach we are going to give these assets and also the future assets?
No. As of now, we do plan that these are 3 projects which we already completed and one is likely to be completed in this financial year only. So with that, I think there is a pause of about 1.5 to 2 years. So we are targeting to monetize these projects as soon as we get, say, right fund and the right price. And we expect that is quite -- maturing quite well.
The next question is from the line of Shravan Shah from Dolat Capital.
Congratulations on a good set of numbers. Sir, just again, reiterating for FY '24, we maintain the same guidance of 20% growth, that is a INR 6,000 crore revenue?
Yes.
Okay. Second, in terms of the order inflow, you mentioned that INR 9,000 crore, INR 1,000 crores, INR 4,400 crores Adani Ganga Expressway we received. So now the remaining that we are targeting INR 5,000-odd crore inflow. Out of that, previously, we mentioned that around INR 3,500 crores can come from the HAM and INR 1,000 crores to INR 1,500-odd crores from NHAI EPC and JJM and railways. So that guidance remains intact?
Yes, of course, I think we have already taken up bids in other sectors like railway, the modeling of -- say, remodeling of the stations. And that, again, gives us the confidence that apart from the NHAI EPC, we would be able to make out some INR 1,000 crores to INR 1,500 crores in highway or say, water or, say, railways are the sector.
Okay. Secondly, sir, this both Khammam-Devarapalli PKG-1 and 2, the appointed date will be by this September, October?
For Khammam-Devarapalli PKG-2, which we have already done with the financial closure, most likely by end of September or first week of October, we will be getting the -- taking the appointed date and by end of November or so, where the concession agreement would be signed very soon. And the significant development has been there as far as land, say, compensation, payments, et cetera, is concerned. So by November end, we expect that all the projects could -- the last project, which we will be getting the appointed date.
Okay. And regarding the equity requirement, you mentioned that INR 286 crores to be invested in FY '23. So for FY '24 and '25?
So it is coming at about INR 208 crores to be invested in FY '24 for these HAM projects and around INR 113 crores for balance for this FY '25, looking for the completion of all these HAM projects by FY '25. So INR 529 crores already invested up.
Okay. And sir, how much CapEx we have done? And the guidance last time we said INR 110 crores to INR 120-odd crores for this year.
Yes. This quarter, we have done significant CapEx at normal INR 45-odd crores being added in our total [indiscernible]. And almost we expect that INR 135-odd crore to be added, but that in turn that we have already given that last -- last 2 last call, that we are now in that range where almost 7 years plus or 5 years plus age of equipment, which gives us, as an internal policy, that we would be phasing out and just taking out those equipment and to be sold out, which is about targeted about INR 40 crores revenue would be coming from these -- selling of these equipments -- plant and equipments. So with that, around INR 90 crore-odd would be, say, added during the financial year.
Okay. And sir, now on the debt front. So debt, this quarter has increased INR 133-odd crores from the last quarter. So just wanted to understand of what's the reason? So definitely, I will be the next question on the working capital asking. But on the debt front, do we see this current INR 450-odd crores debt, will it reduce by end of March?
Yes, sure. It is an interim increase in the debt because see, we have already taken the appointed date of these 3 HAM projects where if you can see the debtor has gone high in SPVs and the investment in SPVs, as well as INR 175-odd crores invested during the current quarter only. So with that, whatever is there, it is again going to cool down and come back to the range of INR 300 crores to INR 350 crores, say, within this July only, we have received most of the payments from the debtors as -- added from SPV and others. So it will be coming back to the same trend as we have guided earlier.
Okay. Sir, now I need the numbers on the retention money, mobilization advance, unbilled revenue, debtors, inventory and payable as on June?
So you are looking at what exactly is the debtor? Debtor is around 6 because there has been a significant increase in the debtor as I have given you that. SPV debtors has gone very high. And with that, the Delhi-Vadodara packages, where we are having 3 packages. So there's, again, where the [ INR 333 crores, INR 134 crores ] is the -- so if you are talking about the debtors, I will just give you a clear -- that include retention.
Yes. So last March, it was INR 695 crores. So against that, what's the number as on June?
Yes. As of June, it has increased to INR 685 crores, which is a debtor...
So this INR 685 crores does not include the retention money?
No. INR 185 crores is the retention and whatever hold upon the retention that is there.
Okay. So what's the unbilled revenue number, mobilization number as on June?
Unbilled total is almost the same, INR 314-odd crores.
Sorry, sir?
INR 314 crores.
INR 314 crores? Okay.
Yes.
And mobilization advance?
Mob advance is INR 286 crores.
INR 286-odd crores. Inventory, what's the number as on June?
Inventory has gone high. It is a 1 plus 5 INR 36 crores. Now it is at INR 219 crores.
INR 219 crores. And payable?
Payable again has gone higher by almost -- it is at about INR 435 crores.
INR 435 crores? Sorry, sir, INR 435-odd crores? So from INR 426 crores as on March, it has increased to INR 435 crores?
No. If you're considering a retention and hold, there are 2 kind of payables. One is the trade payables and which is we are accounting in the payable and then the retention and hold, again, we are categorizing as a debtor plus retention. Together, it is INR 685 crores plus INR 185 crores for this closing balance.
No. That I understood, sir. Sir, I'm saying as on trade payable, which was INR 426 crores as on March, what's the number as on June?
Now it has gone high by INR 125 crores, say, coming at, say, INR 119 crores and INR 435 crores. So together, it is coming at INR 454 crores.
INR 454 crores?
INR 554 crores, sorry.
INR 554 crores? Okay. But now do you see this working capital, which has increased will come back to the normalized level by end of March?
Yes. As already I had indicated that this is a very short period, which we have seen that the debtors has gone very high as far as the payables, again, they are -- and the borrowings has increased, working capital borrowing -- OD limit has been there. But now it has been, again, called dropdown to the same level, and we believe that in September or coming by March, we would be in the same range. And the working capital -- net of working capital is almost same. There is no change because the payables and receivables both have increased. But we would be coming back to the same normal days as well as absolute numbers.
The next question is from the line of Vibhor Singhal from PhillipCapital.
And congrats on a great performance yet again. Sir, just 2 questions from my side. Sir, what is our -- this quarter, we've done around INR 1,000 crores plus of revenue. Q2 will most likely be impacted by monsoon as it is at year-end. So assuming that we're able to do maybe even a similar kind of revenue in Q2 as Q1. That means in the last 2 quarters, in the second half of the year, we would need to do almost INR 3,000 crores of revenue to achieve our guidance. Given that Ganga Expressway project might only start in Q3 onwards only. But do you believe this high asking rate of Q3 and Q4 is achievable? And if yes, which project do you think could contribute more to it? So specifically if I were to ask how much do you expect Ganga Expressway to contribute in terms of revenue in this year in your INR 5,000 crores guidance that you gave?
Yes, sure. You can just see into the breakup of our total order balance on the 30th of June. And with that, say, the breakup is majorly being categorized into the Ganga Expressway, which we believe that we would be able to execute around INR 1,000-odd crores in Ganga Expressway project, which gives us the confidence, one, because the land availability is all there. We have mobilized very, very aggressively into that. And most of the things are all aligned. And by end of September, so most of the -- which we believe the execution. As of now, we already started a certain portion of it. So that gives us visibility that Ganga Expressway would be the major contributor.
Apart from that, if you see the other projects like Raipur-Visakhapatnam, that is OD-5, 6 and AP-1, which we've already done some 5% to 7% progress in these projects and some INR 1,000 crores would be added because they are altogether INR 3,000-odd crores of total project as a EPC value. The INR 1,000 crores would be done during the balance period of the financial year. And the 3 packages where the appointed date would be received by August end or September end and November.
So the Khammam-Devarapalli PKG-1, 2 and then Ganga-Tumakuru. This INR 400 crores to INR 500 crores would be executed in these packages. And major -- part from that contribution from Delhi UER would be INR 550-odd crore. And then balance from Rewari packages, that's about INR 100 crores. PKG-8 and 9 of Delhi-Vadodara would be all completed, which is a balance of about, say, INR 450 crores, INR 460-odd crores is all there. And Mancherial-Repallewada, which is a balance of about INR 225 crores, which would have all executed during the current year only. So this gives a total almost INR 3,800-odd crores, that is excluding price variations, no O&M and no utility.
Right. So fairly -- I mean, you seems to agree INR 5,000 crores can be fairly easily achievable, given where the state of our orders with you at the point of time?
Sorry?
So you believe we can easily achieve the INR 5,000 crores of guidance given the order book where the state of the projects that they are right now.
Sorry to interrupt Mr. Singhal. We are not able to hear you clearly, sir. Your voice is sounding very wobbled. Can you use the handset mode while speaking?
Hello?
Yes.
Yes. Am I audible, sir, now? Sorry for the disturbance.
Yes, quite audible. Yes. Quite clear. And you are saying that we are very confident. Just we have taken into that, that how the things -- all the projects would be contributing to the total INR 5,000 crores.
Got it, sir. So sir, my second question is basically on the HAM projects and the debt level. So, sir, I think Shravan asked in the last question, the debt has increased by almost INR 130 crores in this quarter. But if I look at the cash, which has repeated, our net debt at the stand-alone level has actually increased by around INR 280 crores. So as you rightly mentioned that we have -- this is basically on the back of the HAM projects that needs to be invested and some payments, which we got in July as well. Now, with the further INR 250 crores of equity that needs to be invested in the remaining part of the year. And you're also looking at taking on a few more HAM projects. Sir, how important is it for us to be able to monetize these assets in order to keep our debt levels down to INR 350 crores? Because from what we see, even if you guys do the INR 5,000 crores...
Yes. I got your point. See, it is major important is where the all-time high debtor number is there. So SPVs was at about INR 232 crores. So this is a big number of SPV where the debt, the receivables were all there, and which would have been earlier because there are a few conditions of the bank where the -- say, disbursement conditions were about to be completed. So we could not receive the mobilization advance to that extent, to that magnitude, which definitely we would be getting in this quarter only, we are going to get mobilization advance. And SPV total debtors, which we have received during the month of July itself, NHAI, again, at about INR 229 crores, which is a big number. So apart of these 2 big numbers are not of very significant changes there.
And if you say that when we are going to look at our March number, the total equity requirement -- balance equity is INR 286 crores. And we are expecting that the total cash accrual would be somewhere in the range of INR 585 crores and total INR 585 crores. So which you gives you a clear idea that we would be in that spare or that comfort zone that the debtor is cooling down and the mobilization advance coming in, we would be able to do so.
Got it. Just one last follow-up. We haven't yet received the mobilization advance for Ganga Expressway, right?
No, no, not at all. Not the Ganga Expressway, Ganga Tumakuru, Khammam-Devarapalli even this OD-6 package. So there are -- all these packages not received any mobilization advance till date.
And for the next project, it would be the regular 10%?
Most likely, it is coming about INR 350-odd crores mobilization advance that we could get from these projects only. And during the next 5 months, we will be getting that.
The next question is from the line of Jiten Rushi from Axis Capital.
Congratulations on good set of numbers.
Sorry to interrupt. Mr. Rushi, we are not able to hear you. Can you speak a bit louder?
Sure. Can you hear me now? Hello?
A little better.
Yes. And congratulations on good set of numbers. Sir, my first question was on the revenue. So I was just doing a reverse math. So our order backlog as on June, adjusted for the order backlog as on March, which gives us a revenue of around INR 871 crores. And while our reported revenue is higher during the quarter. So the gap is around INR 195 crores.
There is a big impact of price variation. If you see there's -- our INR 70-odd crore in the total revenue, which has been recognized is from price variation. And if you see the projects, if the projects sizes are about INR 900 crores. So altogether, coming at above INR 1,065 crores, with others have been contributing to the revenue.
So basically, the increase in order backlog is by INR 1,055 crores because of price variation, and we have booked a INR 70 crores-odd revenue of price variation in Q1. Is my understanding correct, sir?
Yes.
And for -- so the variation is around INR 195 crores, the INR 70 crore explains. What about the balance? Is it from the utility shifting, sir?
Utility shifting, O&M revenue and certain portion of the revenue was there, where the aggregate supply was there, which is now almost done because in Hapur-Morradabad, we were supposed to supply aggregate even.
Okay. So that explains the gap. Okay. And sir, now if you -- if we can say we would have given the guidance for the revenue. But sir, your debtors were high, like INR 232 crores from SPVs and INR 229 crores from NHAI. So what has been the collection in July? So now what -- so what would be the debtors in July? And if you can highlight on that, sir, after your disbursement...
Almost coming down by INR 200-some crores. So in July and we are having not more than INR 450-odd crores.
Of debtors?
Yes.
So if this was just basically, we were not able to achieve some threshold, which resulted in delay in disbursement and hence we had to fund it internally?
So majorly, there were 2 things. One was the mobilization advance, which we were expecting to, say, be released to the -- from the SPVs to H.G. or rather from NHAI to SPV. This has not happened in that period. And moreover, the entire billing or whatever work that we have executed in this project, which is in the magnitude of INR 200 crores, which could not be [indiscernible] talking in those projects only.
Because that can be --. Okay. So now the debtors have...
Now, it has been -- again, we have received the amount from the SPVs -- from NHAI, in fact, and then to the EPC.
Sir, you say this mobilization advance of INR 350 crores...
Sorry to interrupt, sir, we're not able to hear you.
Yes. Sir, you have said -- you said INR 350 crores of mobilization advance you will receive in the next 5 months. So this is including Ganga Expressway or excluding Ganga Expressway, sir?
Sir, we have just taken into account 5% from the Ganga Expressway, not more.
5% that had entered in this quarter. Okay. And sir, on the CapEx, as you said, you'll be doing INR 135 crores in gross CapEx and net CapEx would be INR 90 crores, right, sir?
Right.
And sir, about the margin guidance. So for FY '24, we maintained the guidance of 16%.
Yes, very right. In FY '23, we will be coming back to almost 15.5% to 16%. And that, again, in '24, we can just look for -- we call 16%.
So -- and again, sir, on the interest cost, which has come down. So do we expect the run rate to continue? Or we can see interest costs going up because there was a temporary increase in the working capital? So has the debt come down, sir?
It's a matter of only working capital limit being utilized for a certain period or a convene date, not in months. And for that reason, it has gone higher. But ultimately, it would be in the same range and we have seen that it is about 1.35% of the total top line for this current year -- current quarter, sorry.
And sir, last question on the financial closure, which we did recently. So what was the rate of interest, sir?
It's around 8% to 8.3% on all the HAM projects.
And sir, we have seen increase in the interest cost now because of the interest was going up at the corporate level and as well as in the SPV when we go for refinancing.
No, no. For refinancing, we have already said that there are 6 months that is -- and the delta, which -- again which we are likely to get from NHAI, which is already in-built. That is where 0.3% to 0.4% is already there in all the refinance projects of -- the 3 refinance project.
Okay. And sir, outstanding bid pipeline as on date, sir, in terms of crores, what was in railways, if you can highlight? And when the tender is opening?
No, there are a good number of bids which were not yet -- but their bid pipeline is long, and it's very strong that we have seen and indicated the 6,000-odd kilometers being likely to be awarded in the current year only. So with that, I think lot many projects are there and which in quarter 2 end or quarter 3, 4, which would be there. As of now, we have bidded for almost INR 7,000-odd crores where the results are yet to be declared.
NHAI, right, sir?
Yes, these are all NHAI and one is in metro, 2 are in railway and one is, say, in water.
So, basically, 1 metro, 2 railways, 1 water and how many NHAI?
NHAI, they have 3 projects.
3 projects. So total INR 7,000 crores could you see with outstanding -- which will open in like next 1 month right, sir?
Yes.
The next question is from the line of Prem Khurana from Anand Rathi.
Sir, most of my questions were already answered. Just clarifications mostly. So when you say -- I mean, we're looking at around INR 5,000 crores to INR 6,000 crores of incremental orders during the year. Possible to share, I mean, how do you expect this to be kind of split between various segments or let's say, EPC, hybrids? Irrigation and water, I think you said INR 1,000 crores to INR 1,500 crores is what you're targeting, so the balance would be almost around INR 4,000 crores, INR 5,000-odd crores. So how would this -- I mean, the split between, let's say, road EPC and high bridge?
The major portion, which we are expecting are from HAM of NHAI, which are around INR 3,000 crores to INR 3,500 crores and balance about INR 1,500 crores to INR 2,000 crores that we are expecting either EPC from NHAI or say, other than that -- other sectors are all there, which we already started bidding and it is where the railways or water sectors. So these are 2, 3 more venues, which we are looking to add this year at least INR 1,000 crores to INR 1,500 crores would be from these new sectors.
Sure. And any comments on the competitive intensity in railways and water and essentially, if you participate any in bids already been opened how did we fare against our competition or we get to kind of see...
We stood at about L4 or L5 in 2 of the railway projects being -- results being declared in the last 2, 3 months. But still, we are not with -- we are not going very aggressively. We do not expect that we would not -- without compromising or without just doing most of the things. We want to maintain our EBITDA at the same level. And we would be able to get these numbers, which INR 1,000-odd crores from other sectors.
Sure. And for water, you are located in Madhya Pradesh, Rajasthan or we're going to look at the Uttar Pradesh as well because now...
Yes. UP also because we are now having a good presence in UP and a few districts majorly. So we look forward that in UP, MP or Rajasthan for water.
Okay. And sir, on this OD-6, I mean, the FC that we've been able to manage in -- I mean, infused some equity. So just I was wondering, I mean, when I look at the number, the equity that we've infused during the quarter, it's almost INR 120-odd crores. It seems as if we've infused almost 50% of the total required in a single quarter. So I think initially, banks required going to put in only 35% upfront and then gradually, you used to infuse the incremental...
They are having different category of equity where the requirement is there. So if you see INR 175 crores being invested in HAM in this quarter.
Sir, now banks require to put in more upfront. Is that the case? And would the conditions be similar with some of these other OD-5 and the other AP project as well? I mean, wherein you would be required to kind of infuse a larger portion of the equity upfront?
No, it's not that, not upfront. It is again the same category, like it's ranging from 35% to 50% upfront and balance is a proportion as we are taking the debt from them. So it depends upon that.
The next question is from the line of [ Dipend Shah ], an investor.
Yes. And congratulations on a good set of numbers. Sir, I had a question on the margins. Now the order book for us, probably 65% EPC and 35% HAM. Next year, probably the revenue contribution could be in the similar terms. So, given that EPC generally enjoys a lower margin, and this is also with Adani. So it's an EPC order, a large part of it. What factors will kind of help you to maintain a 16% margin in the next year?
You can see the orders which we have taken, we are talking about Delhi UER projects, as well as the Adani project, which is a major portion of work is to be executed in next 1 year or so. So with the EPC, definitely a trend has been there but the lower margins were there, which we or any company has seen. But in these projects, we are having like in Hapur-Morradabad also, the IRB, Adani [indiscernible] we are working and -- these projects. So usually, it has been not a bid. The project, which has been bidded rather than it's a clear understanding between what is the total cost of execution, where the price variation or anything being taken operational execution, say, aspects being taken into consideration. So we are -- we have taken this project with a very conscious decision that we would be making this margin.
Okay. Sir, because generally, when a project is taken under HAM, you enjoy maybe margins in excess of 16%, 17%. Now with one of the primary bidders giving you a project, obviously, there will be some impact on the margins, right, even if you've taken it on your commercial terms and without bidding. So I just wanted to understand your confidence on the 16% margin next year when a large proportion of the revenues is going to come from EPC. So basically, some more light on that, sir.
See, important is I will just -- one more reason is there. So important is that, any developer or any of that HAM or BOT player, they are usually given away the EPC to those players where they are having the good strength to execute rather than there is an aggressive bidding or aggressive, say, call being taken by any company. So there, I think it's the mutual interest in the mutual benefit of both because they are looking at -- they are developer margins rather than EPC margins.
The next question is from the line of Faisal Hawa from H.G. Hawa and Company. The line for the current participant has dropped off. We'll move on to the next question. That is from the line of Ashish Shah from Centrum Broking.
Sir, my first question is on the appointed date for the projects. So for, particularly the Khammam 1 package, the agreement is not yet signed, and we are in the month of August now. So do you think signing of the agreement, financial closure, et cetera, everything can be done by November or that time line might slip to, let's say, beyond December?
No. It all will be done by November because the financial closure, we have already got the sanction from bank, and it's a matter of only just a concession agreement signing to submission of FC and declaration to the FC and then 3 months are ideally reasonably good period within that -- so most of the things are on track at site.
Okay. So you believe the time line for the financial closure can be crunched in and -- because you must have already made the preparation, et cetera.
Correct.
Okay. Sure. Sir, second is on the monetization. I know you did update a bit on that. Now the question is that, we have seen that there has been a mismatch between the expectations from the company side and the -- what the investors are willing to offer. So where are those negotiations? And where are those numbers today? So are we getting the kind of numbers that we expect? Or the numbers are still far below our expectation and because of which the monetization may continue to be delayed?
No, it's not that far below and monetization in any case, it depends upon our willingness -- more of the willingness like a desperation. So we are not desperate enough to -- we have already received one of the annuity of one of the projects. In this quarter 2, we will be getting 2 more annuity. We are experiencing a good part of O&M regular maintenance being taken. So this gives us the confidence and the -- to the other investors as well to what exactly is the margin, where [ rates ] today and we are going to map it.
Right. But sir, just to push a little bit on this. So when we say willingness, what I'm just trying to understand is that, if it is a little below than what we expect, are we still willing to go ahead and close the transaction in the interest of recovering our investments for future projects?
If it is in the range of 10% below our expectations that we can do -- we would be able to do sale. But if it is going, say, 25% to 50% below our expectations. And our expectations are quite reasonable. It's quite checked in or fabricated.
Right. Sir, on the non-highways bid, we did say we have bid for a few railway projects and looking at water, et cetera. So now are we approaching the bids in a slightly different manner now? Because earlier we have bid for a few projects, but we haven't got a significant amount of traction in the non-highways area. Are we looking at new partners? Or are we looking at a different approach to what is this mix going forward?
Say, apart from water, other than -- if it's a single entity piece, we are eligible to qualify to bid all railways, that would be station or that would be railway doubling or new tracks. So apart from that. And water, we already tied up with the JV alliance being done. So there we have already strategically doing most of the things. And we believe that not less than INR 1,000-odd crores will be added in these 2, 3 areas, which we expect within the next 8 months or during the year.
Sure. Sir, just last one. On the Ganga Expressway, just a few data points. So one is that, you said you have 5% mobilization advance. Would this be interest rate?
Yes. Interest, of course, every way it is interest paid in advance.
Yes, sure. And secondly, in terms of the structure of the contract, there would be price escalations available, right? We would have quoted on a star rated basis.
Correct.
Okay. So there are escalations available for all kind of commodity increases from based on a bidding...
Everything is there.
Right. And the time line that we are looking forward is 27 months, but there is some sort of an early completion bonus if we achieve it within 24 months?
Very right.
The next question is from the line of [ Ash Shah ] from Elara Capital.
I had just one question. There were news reports that the NHAI is planning to cut the upfront payment from 40% to 20%, there are planning. So is it true? I mean, have you got any notification from NHAI for the same?
No. See, for the projects which already have been awarded. There's nothing can change. But then -- see, in the forthcoming any bids, if this is a model being discussed and say, it may take time. And whenever the new model is going to come in, it's always -- it will cause commotion, permutation, they all usually changes statistics.
The next question is from the line of Harshad Gadekar from GEPL.
Yes. Is my voice audible?
Yes.
Okay. Yes, sir. Congratulations for the good set of numbers and for receiving the prestigious Ganga Expressway award. So I was just comparing the AGM, sir, with one of the South India-based listed player, which is again close to in terms of our revenue, PAT and order book. So I found that we have very less percentage of fixed assets as a percentage of balance sheet size and higher subcontracting expense as a percentage of revenue. But that's quite fair because we are operating in all directions of India. So right now, this Ganga Expressway project is now going to contribute around 40% of your order book. And so you just mentioned that you are going quite aggressive on the mobilizing the equipment. So how we are planning for these projects? Are we going to focus more on the subcontracting for this or we are going to do it from our own?
No. Every project complexity requires the mixed nature of execution strategy. So it doesn't have the same similar kind of a strategy which we are doing in for Orissa project or say, Andhra or Delhi projects. So this is how -- we have already identified that the portion which is a material part or the subcon part, it is about 28%, 29%, which is not only subcontracting, it is basically a mix of certain items where certain miscellaneous items of drone management system, automated traffic management system, then building works, rest area, et cetera, which usually being subcontracted or offloaded to our vendors. So it's a mix. And so almost it would be in the same range, similar range, which we are already doing in the past.
Okay. And the second one is regarding the margin portion of the Ganga Expressway project as it is a EPC project. So if this project falls under our standardized IRR criteria?
Yes, of course.
Okay. And any color on the -- our ongoing bid pipeline?
Yes, quite strong as we have seen that a lot many bids are now being coming and reflected in the month of August or September, almost 25-odd projects of NHAI, which earlier were at a very slow pace. Now the things are now -- gradually it has been improved.
The next question is from the line of Alok Deora from Motilal Oswal.
Just a couple of questions. Sir, first question was just a follow-up from the earlier question that about the NHAI reducing their contribution to 20%. So have you heard anything on that because there was a big article on that and because that could mean higher equity by the contractor. So how are we looking at that? If you could just elaborate a little more on that part?
See, earlier also last year, I think it's almost 8 to 9 months back, there's the net worth criteria restricting the concessionaires with the net worth criteria was all discussed. But it's yet to be concluded or being just formulated in this concession agreement. So again, this is a concept being discussed that since we are getting good response from all the concessionaires, all the companies, construction companies. So with that, they have taken into that consideration. If it can be reduced down to 20% from 40%. But I don't believe that it's going to be very soon. Yes, definitely, if it is like that, we don't see that if in case any company is having the equity restriction or the ability to infuse the capital and equity. So I think it would be -- they will be lowering down the total, say, appetite -- as an appetite total. If they are looking at INR 4,000 crores, they would be lowering by, say, almost INR 1,000 crores to [ INR 1,500 crores ].
Sure. So that would also mean some reduced competition, right? I mean, then lot of...
Of course, I guess. There are 2 sense to that. One is, where the -- every company individual they would be looking into their appetite, #1. And definitely, with that, I think even it's the discount those numbers of players.
Sure. And also, sir, I just wanted to understand, like, so since you already had a good start to the year with a large order. So any sense on the order inflow? You mentioned about INR 10,000 crores, but could we exceed that? Because we'll be executing also around -- as per the target around INR 4,000 crores in the remaining part of the year. So by the end of the year, we'll be having an order book close to, say, INR 11,000 crores, INR 12,000 crores. And then it should be around 2x the FY '23 revenues. So just any sense of whether we could outdo the order inflows in this year, considering the pipeline is so strong?
See, with this Adani project being added this year and with INR 9,000 crores to INR 10,000 crores is our total inflow guidance for this entire year, we expect that whatever, say, consolidation or stabilization on the aggression, it may take place during the course of 8 to 10 months. So with that, I think it is a better opportunity to be taken rather than going very aggressively just to build up our order book at the end of this financial year.
Right. Sure. So you expect some aggression also to come in, in the...
Yes, it will be cooling down. In any case, it would be coming down.
The next question is from the line of Parikshit Kandpal from HDFC Securities.
Congratulations on a good set of numbers. So, [Foreign Language]. So by this year-end, we will be somewhere around INR 13,000 crores order book, if we are able to get INR 10,000 crores this year. So averaging -- we have been averaging at about INR 6,000 crores to INR 7,000 crores for the last 2, 3 years. So with the increase in order book, how we view the fund and non-fund base limits ramping up? So if you can just touch upon that? That is my first question.
See, we are already having some INR 1,600-odd crores of limit. And today, utilization is about INR 1,100 crores in non-fund and fund base both together. So with that INR 500-odd crores of limits are available, not yet to be utilized. Majorly, it is non-fund-based, okay? And our assessment is already in place and about INR 500-odd crores of addition limit would be there by this magnum by Q2 and/or by Q3 max. So I think there's -- I don't see much of a challenge getting this limit and I'm just too happy to share as we have already got the upgradation in the rating that -- with that, I think the banks and we are having a different attitude to just look forward for a big exposure.
Okay. The second question is on the debt level. So as the execution ramps up we will require both investments on CapEx and equity, besides investment in working capital. So do you think that should be in the range of like INR 315 crores or INR 320 crores of debt by FY '23 end?
See, Parikshit, a major important aspect is, where we are getting timely payment from SPV. So whatever has been there, which we have seen that 40% to 50% execution was in our control, means we are getting within 30 days. And that is the first part. Number 2, if we are getting regular payment from NHAI, that is the second part. That, of course, that has helped us with the working capital or any of the project requirement has not gone very high. Earlier, it was -- yes, we have also seen that last 1.5 year plus with IRB and with the Rajasthan projects, which we experienced earlier. Now, the things are that we have already completed those projects, and we are getting regular payments from Adani. We are getting regular payments. So that's -- the range of working capital, which is about 51, 52 days as of now, would be reasonably at about, say, 40, 45 days, not more.
Where do you see the debt levels for the year-end, sir? Sorry, I missed that number.
It's more or less we are expecting about INR 350-odd crores.
3-5-0?
Yes. In mobilization advance, in any case, we are having this facility that all the projects do have 10% of the mobilization advance. And with this all entire project getting this appointed date and say, we would be in a range of to get, say, INR 500-odd crores of total mobilization advance, INR 350 crores, in any case, and INR 150 crores in the earlier projects or the older projects.
No. The issue is that a big project, which is there in the order book, it doesn't have -- this has only 5% mobilization advance. So the balance, 5%, you'll have to bring in. So that will add to your working capital limits.
No. See, what I'm saying is INR 350-odd crores are to be added as a mobilization advance in this quarter 3 -- quarter 2 and quarter 3. So with that, we would be in the range of about INR 500 crores of total mobilization advance by end of this year.
And what is the mobilization advance size now?
It's almost 10% every year.
No. I'm saying, what is as of first quarter and how much is mobilization advance in the current year?
INR 288 crores. As of first quarter, it's INR 288 crores, which likely in quarter 2, whatever we will be executing, it would be getting to, say, the reduction would be in the range of INR 80-odd crores. Then again, we need to get this INR 350-odd crores. So with that, it's -- we're going to reach up to INR 500 crores.
Got it. So you will add around INR 200 crores on top of it from the mobilization advance.
Yes.
Okay. And just one more thing, sir, on the -- what is the total funding -- portfolio funding EPC requirement?
Funding requirement for?
Total pending equity is combined for the HAM projects?
The total is INR 1,100 crores. I've already given you that INR 1,137 crores is the total requirement, out of this INR 529 crores already done until this quarter 1. So we are looking at INR 286 crores, but this is quite aggressively a high number, which we are expecting INR 286 crores. Then likely, it would be in some INR 210 crores to INR 215 crores would be funded during the year, balance portion of the year. And say, in -- FY '24, it is coming at INR 208 crores.
Sir, my question was for now this time, we had a big order which had contributed -- last single order, which has contributed and now the expectation is like every year, annually, you'll have to book in about INR 10,000 crores of order, then to INR 11,000 crores. And next year, if we have -- if we assume some growth on that number and if order of -- the magnitude of Adani is not there in that next year. So incrementally you have to rely either from more HAM projects which is the typical awarding by NHAI large quantum of working capital through HAM. So incrementally, we will see more investment going in the equity. And if we don't have back-to-back monetization platform or some arrangements with the investors, so it is -- a lot of cash flows will go into selecting the equity requirement. So I think you need to work on monetization of these assets and you need to have something in place, some...
You are very right, and we are working on it. We are not that -- but as of now, we do believe that as already just answered the question, what should be the minimum level, what of your expectations. The expectation is quite reasonably being worked out. And if that -- if it is coming in and say whatever number is being discounted by 10% or any offer is coming at 10% less the offer which -- or our expectation, which we are taking, we are very keen and going away doing those transactions. It's not that we are just holding the asset for a longer period in confidence that our working capital and all -- everything will be so aligned. So we are doing most of the exercise in that line only.
[Operator Instructions] The next question is from the line of Jiten Rushi from Axis Capital.
Sir, my question would be on the competitive intensity. Sir, assuming as you said initially that competitive intensity is easing out. So we have the high chances of winning the order inflows, which we are targeting. Sir, let's say, if we are in the next year -- which is the run up to the election where we see ordering activity to slow down probably from Q2 or Q3 onwards. So do you see yourself winning more projects this year than your targeted INR 5,000 crores, INR 6,000 crores orders inflow for the balance period? Or you will also look for similar INR 10,000 crores inflow next year?
Because usually we see that NHAI -- the awarding from NHAI comes down probably in the -- run up to the election year. So, then competitive intensity can go up this year because of the NHAI targets being steep in terms of awarding. So how do we see ourselves placed in this competitive environment? And do we see that we would accumulate more orders this year so that our revenue visibility remains intact for the next 2 to 3 years? Or you'd bid according to our target of INR 10,000 crores this year and probably INR 10,000 crores, INR 11,000 crores of next year? Can you just throw some light on this?
See, we would be bidding as per our own target where the margin should be in that range. That is more important. See, if it is INR 5,000 crores, we'd likely to get even with these margins, we can get even more. Then they give us the confidence that for the coming years, it would be -- we would be not so aggressively doing so. But again, if you're saying in quarter 3, 4 onwards, looking to the election year of '24, we may or any company would be looking so aggressively. I think the aggression which we have seen in the last 1 year, that is -- based on the clear trends that most of the things have already been damaged, now the things are going to be repaired, not managed.
And sir, one more thing. You said that there was a price escalation in the order backlog of INR 1,065 crores. Sir, any further price escalation we're expecting in the order backlog?
No. See, we have not taken into consideration the price variation, which would likely to get for the further execution. It is a trend of price variation, which we are getting is about, say, 8% to 10% in most of the projects. So this is where I think the execution at INR 1,065 crores, in that breakup, it is INR 70 crores was the price escalation. So the order book consumed was not giving that what you are saying and what I'm saying.
Okay. So you're saying that INR 1,065 crores of the acquisition, this quarter had INR 70 crores for price escalation?
Escalation, yes.
Price escalation. But sir, the order book also went up, there will be some price variation also in the order backlog, right, sir, because of the...
Of course, I think when we are going to execute quarter-on-quarter basis, and the PV would be recognized on taken whenever we have, what exactly is the number, which we usually would be getting in one certification.
Price variation number in the order book, which you have added at the end of June, any number you can highlight?
No. See, this cannot be estimated right now.
Okay. Got it. And sir, on the margin front, so just can you say that is it safe to assume that in HAM project our equity margin is 18% while on the third-party NHAI project you are expecting 12% to 13% and on the subcontracting our margin would be range of 11% to 15%. Can we safely assume that, sir?
It's almost a similar trend, which we have already experienced earlier, like 18%, 20% in these HAM projects and then 15%-odd in this EPC, which we are usually getting from the private client or the subcontract and then 10% to 12% in this other regular EPC projects of NHAI.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, just a clarification. The monetization, we are looking at 3 plus 1, all the 4 projects we are looking for the monetization.
Yes.
And then one more thing is, let's assume if this gets delayed for whatever reasons. So from here, how much more HAM projects we can add in terms of the value? Can we add INR 5,000 crores, INR 6,000 crores of HAM projects even if the monetization does not go ahead?
Usually, year-on-year basis, if we can add some INR 3,000 crores to INR 3,400 crores or INR 3,500 crores. So that is the range which we can add comfortably even the monetization is not taking place.
The next question is from the line of Meet Parikh from Anand Rathi.
So I had a question regarding the early completion bonus. So we were supposed to receive an early completion bonus. So has it come during the quarter? Or it will come into Q2?
No. As soon as we just received the completion certificate in Q2 and Q3, we would be getting it.
Okay. In Q2 and Q3 we will be getting. Sir, can you tell me the amount how much will be...
Roughly, come it about INR 26 crores in both the projects.
In both the projects. Okay. And sir, one more thing. For the -- any project where we'll be receiving the PCOD or the COD in the next 1 or 2 quarters?
Yes. Of course, I think we are expecting to complete 3, 4 projects. That is -- one is the Mancherial Adani project and then 2 of Delhi-Vadodara 8 and 9. Delhi-Vadodara 4 we already got the completion.
Okay. Sir, for the Mancherial, when do we expect it to receive, sir?
The TC would be, in any case, by -- in this quarter only and for Delhi-Vadodara 8 and 9, the entire completion -- because they are all COD. There's no PCOD in Delhi-Vadodara packages, the completion. So by December, in quarter 3 or maximum quarter 4, we will be getting those projects.
The next question is from the line of Faisal Hawa from H.G. Hawa and Company.
Sir, can you just elaborate on some 3 or 4 best practices that we have introduced into our road construction, which will enhance our margins? Any kind of changes you have made to the processes? Because now we are dealing that...
Of course, I think apart from automation, digitalization of most of the, say, online tracking to -- it can be FDMS, FLMS, where there's some techniques being used for diesel dispensing and tracking control of all our GPS tracking of our equipment. So these are online tracking of [ daily EPR ]. So any material reconciliation, any of such kind. So usually the best of the human resource being deployed at all the areas where the control can be more effectively been put to place. So these are all regular practices which we are doing.
So any backward integration that we have got into like...
No. So we have -- as a part of it, we have started that -- we have taken a stake in one of the metal beam crash barrier that is -- where we usually consume every year INR 100 crores to INR 150 crores of total requirement of our -- so looking forward, I think it's not a -- more of the backward integration. It was the operational efficiency, which we can look into the areas, mostly a few things they can add to...
So basically you are getting provision on stone crusher?
No. Stone crusher we usually have -- already having, say, 18 to 20-odd crushers in-house. And apart from that, it's a balance of where the procurement or production being done, in-house or outsourced.
Okay. And sir, I mean, why is the NHAI tender pipeline is so weak from the last 2 or 3 quarters for the visitors? Some reason to it? Or it will get more warm in the coming 2 quarters?
I think it is very good in quarter 3 and 4, and they have almost reached to the total -- what they have guided. And then quarter 3 and 4 of this year, again, there's some 6,000 kilometer to be awarded. Most likely, they will do so.
So in value terms, in rupee terms, how much would it be?
Yes, almost INR 1,25,00,000 to INR 1,50,00,000.
In road construction alone and this should be including HAM as well as EPC?
Yes, it was all, HAM, BOT...
How much would it be HAM and how much would be EPC in the coming...
See, as a rough guidance, I think it is 60-40.
Okay. So quite a bit to come?
Yes.
The next question is from the line of [ Dhruv Bhimrajka ] from Monarch AIF.
Congratulations on good set of numbers. Sir, I was going through your AGM resolution and one of it says that there is a special resolution in which you propose to keep aside to this INR 50 crores for giving as a loan or guarantee to your subsidiary companies. So can you explain why this is being moved in the AGM? I mean, what is the logic behind this putting up INR 50 crores sum as a collateral or guarantee for those subsidiary companies?
So this -- we have received the collateral security or mortgage on our working capital limits from these promoter group companies. So there are a few almost -- it's almost in the range of INR 200-odd crores being provided by them. So one of the business operation requires INR 20 crores of lending from the borrower, let's say, what their business like as a resort or what. So that is where we have proposed that if in case it required the collateral security in lieu of that we are going to give the corporate securities.
Okay. Sir, I wanted to understand that in these business, so how many hotels do we operate as of now, apart from this...
It's only [ first property -- sales ] property we are developing, most likely in November, it will be started.
Okay. So you already have one property and you are developing another property, which will start in November, right?
Yes.
Okay. And this property is in which area, sir?
It is in Udaipur and I think we can discuss afterwards even.
The next question is from the line of Vishal Periwal from IDBI Capital.
Yes, sir. Sir, one industry-specific question. I think you mentioned on the price escalation clause. Now, any prices have increased? And if you have executed that order, so you can book it in your revenue like INR 70 crores, which you have mentioned. But then how the order book get a price escalation? Because it is not yet executed because the prices can go down further also.
We have not considered any price variation, which is likely to be received over -- once we execute these projects. So whatever actual we receive, we've only taken that particular into account, as a total, what we have executed. But we cannot take anything for granted that this is the likely price variation, which we can take in our order book.
No. But I think -- just correct me if I'm wrong. So you mentioned INR 70 crores we have already booked in the P&L. And then there is a component of probably price escalation, which is there in the order book, which has led to increase in the order book.
No, the order book doesn't have any price variation.
Okay.
Yes. The order -- balance order book is only the number, which is yet to be executed.
Okay. Fine. So -- but then this -- the INR 70 crores that we have booked it is for the order that we've executed only in this quarter, or it includes previous quarters?
Yes. Correct. In that quarter, whatever we attributed, we received the price variation of INR 70 crores. So that is coming as a revenue.
The next question is from the line of Shikha Doshi from Axis Securities.
I would like to know what is the working capital days for this quarter and your guidance for the year for the same?
The working capital -- net working capital days are coming at 33, which is 51 is the debtor days and 52 creditor days, inventory days is about 31.
Okay. And like what is the expectation for the coming quarters of the year?
Yes. Most likely, we are in the similar trend for last few quarters, and we would be in that trend only.
Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their closing comments.
So thank you, everyone, for your participation in our quarter 1 FY '23 earnings call. In case of further queries, please feel free to get in touch with us. We look forward to interacting with you next quarter. Thanks.
Thank you. Ladies and gentlemen, on behalf of H.G. Infra Engineering Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.