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Ahluwalia Contracts (India) Ltd
Earnings Call Analysis
Summary
Q2-2024
In Q2 FY24, Ahluwalia Contracts (India) Limited reported a striking growth, with turnover and PAT surging by 44.75% and 41.21% respectively, over the same quarter the previous year. Sales hit INR 901.55 crores, and profit after tax reached INR 55.30 crores. This performance boosted earnings per share from INR 5.85 to INR 8.26. Half-year figures followed suit, with turnover and PAT rising significantly. EBITDA margins for the quarter and half-year showed marginal improvements. With a net order book at INR 12,062.20 crores, the company is set to maintain a revenue growth guidance of 20% or above, despite ongoing NCR construction bans. The bid pipeline stands at INR 2,500 crores, indicating a conservative bidding approach.
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Ladies and gentlemen, good day, and welcome to Ahluwalia Contracts (India) Limited Q2 FY '24 Earnings Conference Call hosted by AMBIT Capital. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Viraj Sanghvi from Ambit Capital. Thank you, and over to you, sir.
[Audio Gap]
Managing Director. Mr. Vikas Ahluwalia, Whole-Time Director; and Mr. Satbeer Singh, CFO of the company. I will now hand over the conference to the management team for their opening remarks, after which, we shall open the floor for Q&A. Thank you, and over to you, sir.
So we have -- we at Ahluwalia Contracts (India) Limited, have announced our financial results for Q2 FY '24. During Q2 FY '24, the company has achieved a turnover of INR 901.55 crores and a PAT of INR 55.30 crores in comparison to a turnover of INR 622.84 crores and a PAT of INR 39.16 crores in Q2 FY '23.
The company has registered a growth of 44.75% and 41.21% in turnover in PAT, respectively, during Q2 FY '24 in comparison to Q2 FY '23. EPS of the company for Q2 FY '24 is INR 8.26 as compared to INR 5.85 in Q2 FY '23.
During Q2 FY '24, the company's EBITDA margin is 9.96% as compared to 9.93% and a PAT margin of 6.13% as compared to 6.29% in the corresponding period. During H1 FY '24, the company has achieved a turnover of INR 1,665.16 crores and a PAT of INR 105.03 crores in comparison to a turnover of INR 1,232.09 crores and a PAT of INR 76.94 crores in H1 FY '23. EPS of the company for H1 FY '24 is INR 15.68 as compared to INR 11.59 (sic) [ INR 11.49 ] in H1 FY '23.
During H1 FY '24, the company's EBITDA margin is 10.36% as compared to 9.94% and a PAT margin of 6.31%, as compared to 6.25% in the corresponding period. Net order book of the company is INR 12,062.20 crores...
Sorry to interrupt. Sir, your voice is not audible. [Technical Difficulty]
Ladies and gentlemen, it seems that [indiscernible] management, please stay connected while we reconnect to them. Ladies and gentlemen, thank you for patiently holding. We have the management line connected with us. Over to you, sir.
Yes. Sorry, apologies, there was a glitch in the system. I will repeat part of my statement again. During Q2, FY '24, the company's EBITDA margin is 9.96% as compared to 9.93% and a PAT margin of 6.13% as compared to 6.29% in the corresponding period.
During H1 FY '24, the company has achieved a turnover of INR 1,665.16 crores and a PAT of INR 105.03 crores in comparison to a turnover of INR 1,232.09 crores and a PAT of INR 76.94 crores in H1 FY '23. EPS of the company for H1 FY '24 is INR 15.68 as compared to INR 11.49 in H1 FY '23.
During HY1 FY '24, the company's EBITDA margin is 10.36% as compared to 9.94% and a PAT margin of 6.31% as compared to 6.25% in the corresponding period. Net order book of the company is INR 12,062.20 crores to be executed in the next 24 to 30 months. Total order inflow during FY '24 till date stands at INR 5,259.50 crores. At present, we are L1 in 1 project amounting to INR 2,840 crores.
Over to you for questions now.
[Operator Instructions] First question is from the line of Shravan Shah from Dolat Capital.
And congratulations on a great set of numbers, particularly on execution front. So just to revise the guidance. So we -- last time I talked about 20% plus kind of a number, a revenue growth for this year and 20% for FY '25. So considering the 35% plus kind of a growth in the 1H. So how much upward are we revising our revenue guidance for this year? And based on that, how much one can look at the FY '25 revenue growth?
Thank you, Shravan. Look, our guidance remains the same. It will be 20% or upward to 20%. We have to factor in the NCR and the NGT ban, almost 18% of our order book is from NCR. And those projects, as you know, have been at a standstill now since before Diwali. And we do not know for how many more days the ban will be there on construction. So that is going to affect the run rate a little bit. So our guidance for both top line and margin remains what I gave last time.
So just to dwell further. So let's say, for this quarter, third quarter, how one can look at in terms of the execution as the ban is already there. So and 1.5 months is already there. So how one can look at this quarter growth?
Quarter-on-quarter, there will be growth, and we are hoping that post Diwali, generally, in a couple of weeks, the situation should improve when we should hit the ground running as far as our projects in NCR are concerned. So that's why I said that I -- we maintain the 20% or upwards of 20% guideline as far as our top line is concerned. Hello?
Yes, sir. Can you hear me? Sir, can you hear me? I can hear you clearly.
[Foreign Language] I can hear you now.
Yes. Sir, I'm saying this quarter in terms of the EBITDA margin, it has came down. So probably we are looking at 11% for this year and next [Foreign Language] half 12%. So from the third quarter, can we look at...
Yes. It will, it will. I had mentioned this last time also with the last 2 quarters, the margin as well as the run rate will improve further.
Okay, okay. And in terms of the order inflow, so definitely, including the L1 is now INR 8,100 odd crores. So how much more are we looking at on what's the bid pipeline?
The bid pipeline stands at about INR 2,500 crores. We should -- I think we are in a position to -- other than the L1 order, we should get orders close to about INR 1,000 crores. We are not bidding aggressively.
Yes, yes, that I know that we are in a comfortable position. So -- and 2 aspects in terms of these 2 big projects, one is Gems and Jewellery and second is CSTM Mumbai Railway Station redevelopment. So both so first the Gems and Jewellery when the LOA will be there and how much execution one can expect in this year and the next year and the same for the CSTM this year and next, how 1 can look at the execution?
So CSTM, since that project is in hand, we should be in the third quarter, and we should start our billing cycle. And we are expecting a billing of anywhere between INR 150 crores to INR 200 crores as far as the CSTM is concerned.
As far as Gems and Jewellery this thing is concerned, we may do a little bit of billing in the last quarter. As far as -- as we mentioned last time, they're looking to the bid -- although we are clearly the lowest -- looking to reduce the budget -- the figure that we've quoted is above their budget. So they're looking at redesigning a portion of the project. So I think it will be at least another 1.5 months to 2 months before it is awarded.
Okay. Okay. Got it. And last -- a couple of data points on the balance sheet front, mobilization advance, retention money, unbilled revenue.
Yes, yes, Shravanji, Satbeer will take you through all those points. Yes, Satbeer?
This is retention money, INR 263 crores. And debtors. Debtors are INR 686 crores. Mobilization INR 435 crores and trade payables INR 691 crores. Unbilled revenue of INR 430 crores. Tax provision is INR 197 crores and bank provision INR 325 crores. And besides that gross debt is INR 32 crores.
Yes. So that number we have because we have a balance sheet. Just to clarify, sir, this increase in other current seems to be primarily because of the increase in the unbilled revenue and slightly increase in the retention money and also debtor days have also slightly increased, though it is still at a comfortable level, but how one can look at by end of March, can we see some more reduction in the working capital?
Yes. Because we are expecting retention utilization also because that is [indiscernible]. That we are expecting [indiscernible] a few project utilization, and that will be come down. And also this is unbilled revenue INR 430 crores also will be certified because various projects are on the first of completion that's why we are expecting that we will do it also.
[Operator Instructions] Next question is from the line of Laxminarayan from Tunga Investments.
So when you
[Audio Gap]
projects, right? Be it L1, what is the criteria you...
Sorry to interrupt Mr. Narayan. Your voice is breaking. [Technical Difficulty]
Yes. Is it better now? .
Yes, this is better.
Yes, it is.
So my question is that whenever you take a project, be it L1 or non-L1 being a private sector, what is your minimum threshold in terms of various things like margins or financial closure, et cetera? And how do you think about it? What are the 2 or 3 qualitative or quantitative parameters you have? And has it changed in the last 2, 3 years?
Okay. First of all, as far as the change is concerned, if you -- maybe you were there on the last couple of calls, we primarily were -- our order book comprised of public sector contracts. But we, over the last 1 year, have signaled a shift in our thinking now that the private sector is reviving. We want to maintain a healthy mix. That is how you see over the past couple of quarters, we've got orders from large private sector clients like DLF, MAX, Bennett, so on and so forth, right?
So that's been 1 change. Going forward, we want to maintain a healthy balance between the 2. Today, the division in the order book is private sector is almost 30% and 70% is the government or the public sector. We -- when we are bidding for a project, there is a template through which we rate internally, the client in terms of -- and also the project in terms of its geographical location, clients in terms of the financial stability, the past track record with large construction companies, so on and so forth. We are extremely very -- of areas in which -- we are not going to areas where we are not geographically present, and areas which have a stable government, that is something that we look at. As far as private sector clients are concerned, having burnt our fingers during the last recession, residential private sector projects is something that we only do with a few developers with proven track records. Have I answered your question? Or...
Yes. Is this the margin threshold, what are the things you actually look for margins or...
So it depends. The margin also, it can vary when we bid a job within a narrow bandwidth, depending on the credibility of the client and the longevity of our relationships with the client. If we've been associated with the client for many years, and we feel that the payments and the cash reserves, the client is good. We may agree to work on a slightly lower margin also. So generally, we try and factor in double-digit margins.
Got it. Got it. I think what I understand is the horizontal development versus vertical development, horizontal development projects are either have high interdependency with other agencies as well as the construction cost or the margins are lower than vertical high rises, right? So how do you think about it? Do you actually have a view that you would actually prefer a vertical versus horizontal?
Not really. Over the years, we've built in, in-house capabilities to do disciplines other than core and shell also like electromechanical works, plumbing, fire fighting works, finishing work. So -- and that has helped us as far as execution of EPC winning and executing EPC jobs is concerned.
Having said that, in residential projects where we see a lot of high-rise is now being tendered out by developers in different parts of the country. At the moment, our focus is only core and shell, because once we start doing the finishing or other services work, we are dependent or -- we are made to -- we are the last one out of the site. We are made to hand over to the end user. That is something which we feel drains ultimately hit our profit margins. So it actually varies from project to project or client to client.
Got it. Got it. And in terms of your growth, you have almost doubled your order book in the last 4, 5 years, right? As an organization, how do you think about scalability of the management? And how do you think -- where are the areas where you are actually concentrating to ensure that you can deliver projects consistently at high quality and high return ratios, keeping the growth also intact?
So Mr. Narayan, I did mention this in the last call also, the company has embarked on a digital transformation exercise, which is being spearheaded by our Director, Mr. Vikas Ahluwalia. And that is something which we feel now that the scale at which we have begun to operate. That is something which is now mandatory, it is a must. And we are -- not only are we totally transforming digitally, but we are also building in-house capabilities as far as cruising up or creating a very strong design sell, utilizing technologies like Autodesk, BIM to ensure that the inefficiencies that are an inherent part of a construction projects are minimized.
As far as scaling up our team is concerned, I did mention in the last 2 calls, that's how our employee costs are going up a bit because we are continuously -- even through the downturn, we were recruiting people, training people, upskilling is an integral part of our day-to-day working now. And we are recruiting close to 50 to 60 fresh engineers on a yearly basis from various campuses.
Got it. Sir, one last question from my side. Your -- last time, you called out that election time creates some kind of tardiness in the tender scheduling, right? And therefore, how do you think about that from an order book point of view, do you actually are seeing it happening in terms of slowdown in orders?
Yes, I didn't mention it last time also that since we are well stocked up and over the next couple of quarters, we would not -- there would not be the same rapid growth in our order book, and that can be seen in the last couple of months, I don't think we've won any significant order. As it is, we are not bidding very aggressively. We are biding our time.
Next question is from the line of Parvez Qazi from Nuvama Group.
Congratulations for a good set of numbers. So a couple of questions from my side. Did I hear it correctly, you said that in Q3, the revenue should be better than what we did in Q2?
I didn't say that. I said it would be better than the corresponding quarter of last year.
Last year. Okay. I just wanted to reconfirm. Yes. Second, in your -- while answering the previous participant, you mentioned that our share of private sector order book has gone to about 30-odd percent. So are we okay with this figure? Or do we want to take it up to 50-50? What is our thought process there?
I mentioned last time, I think 60-40. So in the short term. So that is what we are striving for.
Sure. And how are the payments from the state government now have things become better or are they same, how are things?
As far as Bengal is concerned, our exposure to state government projects is almost negligible now, and we've been able to get out most of our payments. Bihar, there is issue on the state-funded medical hospital project. There is a substantial amount of money, which is stuck there. Himachal, the money is coming through. I don't think we have Haryana government, we have been able to, in the last quarter, we have been able to get a significant chunk of our [indiscernible] out. So I think the only problem that I see is with Bihar.
Got it. And in terms of competitive intensity, how are things? Well you did say that we are not bidding aggressively. But overall, how is the competition now?
High. High.
And do you expect it to remain the same after elections or do you think there will be changes....
Over the next couple of years, I expect it to remain high.
Sure. And last question, what is the kind of CapEx that will do in FY '24?
So I think I mentioned about INR 120 crores in the last call. We have done a CapEx in H1 of about INR 54 crores. So it should be there or thereabouts.
Next question is from the line of Mohit Kumar from ICICI Securities.
Yes. And congratulations on another good quarter. My first question is, sir, on the private orders you did mention they're looking to maintain 40 -- 60-40 ratio. But my question is that are you getting private orders across the country or is limited to NCR?
We are working in 16 states at the moment. And wherever we are, we are looking to take private sector orders provided the client passes through our template of due diligence or the factors in which we evaluate a client.
Understood, sir. My second question is on the stationary development. Do we have appetite to bid for more stationary development? And are there a large amount of tenders available for bid as we speak?
Tenders are there. But at the moment, no, we want to -- this is a new client for us. So we're doing 2 large stations. We want to achieve significant progress and then look at other stations.
And how do...
I don't think we will be looking to be more precise. In this -- rest of this financial year, I don't think we'll be looking at any more station orders.
But how do you see the revenue booking in this petition orders? Can you just give us some indicative idea?
I did -- I answered this. I think the first question that was put to me. In CSTM, we should be logging about a billing of about INR 150 crores to INR 200 crores in this financial year. That means in the next 2 quarters because at the moment, there is no billing there, which has happened. As far as Chandigarh is concerned, we should be doing a billing of about INR 100 crores.
And is that slow-moving orders in this entire 120 -- INR 12,000 crores?
The INR 12,000 crore orders, I don't see there are any slow moving orders.
Okay. Understood, sir. My last question is, I think somebody asked you about the impact of election. Are you seeing the impact election on the prioritization of tenders or some impact on the scaling of the revenues?
I think as we come closer to December, January. January when the elections were likely to be announced, the number of tenders which will start -- it will reduce. And we are already seeing some sort of an impact.
I understand. Anything on the execution side, execution ramp-up?
Execution -- sorry, execution ramp up.
Yes, let's say the payments are slow, so you slow down the execution because the governments are busy in the election, there is less money available for to do that. Yes.
Generally, that happens maybe -- I don't think this financial year, there will be an impact. That generally happens a month or 2 before the election date. Election will -- probability will be May somewhere. So I don't think this financial year will be impacted as far as operations are concerned.
My last question was, do you see more private orders closing in the next 4 months, I think the private estate is point right now, so you speak, right?
Yes. We are out of the likely inflow of orders of about INR 1,000 crores, about 50% should be from the private sector.
The next question is from the line of Ashish Shah from JM Financial.
Sir, just one question. Given the profile of some big ticket orders like the CST or the Gems and Jewellery Park, you think or CapEx intensity or working capital intensity will change materially from what it was in the past. So because we have, in the past, had a very lean kind of capital structure. So is the intensity of capital more in these projects?
As I said that CapEx to some extent, as far as CSTM is concerned, for the Chandigarh Railway Station is concerned, has already been done. And we've done a CapEx of INR 54 crores in the first half of this financial year. So -- and we predicted about INR 120 crores. So we are more or less what we had said, it will remain -- we will remain within INR 120 crores what we had said.
Then our -- a few of our large orders are being completed also Jammu, we should be completing by December, January, that before CSTM was the largest order. So a couple of other such large jobs are also nearing completion.
And sir, in terms of working capital, let's say, in terms of the milestone payments, do you think that the milestones are longer or a little more different from what we have been operating in terms of our other orders. And hence, you may see some bit of a temporary buildup of working capital or these are largely in line with the other orders that we have?
No, you're right. There may be a temporary buildup because in item rate contracts generally, whatever you execute, you build and you get paid a month-on-month basis. EPC, we are generally paid as per milestones. And the payments due may not necessity reflect the actual work done on the down in the first half of the [indiscernible]. So yes, I'd say you're right. EPC, [indiscernible] new concept, all of us, even the clients are still sort of seeing the way around. Though our past experience, not only [indiscernible] but other construction companies, they given feedback to the client and going forward to [indiscernible] contract, the payment schedules are becoming more equitable.
Next question is from the line of Nikhil Kanodia from HDFC Securities.
Am I audible?
Yes you are.
Sir, firstly, congratulations on great set of numbers. Sir, I had 2 questions on your INR 12,000 crores outstanding order book. So number one is, what percentage of it is fixed -- is on a fixed price basis?
24%.
24%, right?
Yes.
Okay. And sir, what would be the projects wherein like you would have started to recognize the revenue, but the margin recognition threshold might have not been met yet.
Can you repeat that question, please? .
Sir, the projects wherein the margin recognition threshold might not have been made yet.
So if I understand your question correctly, you are saying that the targeted margin is not met, which are those projects. Is that -- what you are aiming to ask?
Like we would have some threshold wherein we would start to recognize the margins as well, like for example, if we have a benchmark hurdle rate, post that will -- the threshold that we have to recognize, we would have started doing that. So something on that front?
If this question is related to our billing or you're talking about margins per se. I'm sorry, I'm not getting your question. So 2 -- maybe what I'm going to say may partly answer your question. A, in projects, we do a monthly billing. The item rate contracts, as I mentioned earlier, whatever is physically built or executed that gets built based on the bill of quantities. In EPC contracts, the billing is given monthly, but there is -- there are milestones, monthly milestones based on which we build.
As far as margins are concerned, the targeted margins, there are maybe on an overall testing project, we may have -- when we tendered out and on the job, if there is a margin of 10% in the first half of the life cycle of the project, the margins are lower. In the second half, the margins are higher. Am I clear? Have I answered your question?
So sir, it is regarding the second part. So like the projects wherein -- the projects that are not matching your margin threshold like for example...
Okay. The overall margin that we had plunged in, in a contract. Okay, what happens is, and like we talked about CSTM. We talked about the Chandigarh Railway Station, right? Maybe we talk about the Bharti project, the Aerocity project. Since these -- all these projects are in their -- some of these projects are in their infancy, there is -- in the initial phases of the project, they tend to take in more money right? It's only -- as we move along, as we come to the second half of the life cycle of a project, we are attaining -- the run rate is going up. That is when the margins also go up.
So some of these jobs, yes, CSTM, Chandigarh Railway Station, Aerocity, some of these jobs, the margins are lower at the moment.
Okay. Okay. Understood, sir. And sir, one last question that I have is, if I heard you correct the monthly run rate for the CSTM project is around INR 150 crores to INR 200 crores that you have mentioned?
Monthly run rate in the last quarter would be between INR 75 crores to INR 100 crores and which in FY '25 will cross INR 100 crores per month.
Okay. And sir, similarly, if you could give those amounts for your Gems and Jewellery Park and for Tata Memorial project as well?
Gems and Jewellery Park at the moment, since the job is yet not awarded to us. And as I mentioned, it may take another couple of months for it to be awarded, and the final budget will only be then known to us. It may not be prudent for us to give any run rate on that job. As far as Tata Memorial is concerned, in the last quarter, we should easily be billing in excess of INR 20 crores every month.
Next question is from the line of Deepika Bhandari from PhillipCapital.
And congratulations on great set of numbers. My first question is, sir, you said the Bihar we have substantial amounts stuck there. So can you just tell me the Bihar receivables?
Bihar receivables are to the tune of about INR 175 crores.
INR 175 crores. And there -- did we receive some payment post Q2, say, in October and November?
In October and November, yes, we've received some payments in October.
Okay. Okay, sir. My next question is -- as on last quarter, in Q1, around our 5 projects were not -- I mean I understand there are no more slow-moving projects in the order book. But in last -- in Q1, we have 5 projects that were not contributing in revenue. So during Q2, at the end of Q2, were there any projects that are not contributing in our revenue?
I did mention CSTM, Chandigarh Railway Station. MAX is -- only -- I think out of our major projects, these are the 2 which are not contributing.
Okay. So Tata Memorial Hospital, Dharavi and NIIT Patna were contributing because...
Yes, yes, NIIT Patna, now we are doing -- we are logging nearly INR 2 million -- INR 20 crores every month. Dharavi is also -- we are doing a billing of INR 7 crores to INR 8 crores every month.
Okay, sir. Okay. Sir, and just last question. Would you want to give us update on few of our major projects?
I did mention earlier, Jammu is nearing completion. Most of the job will be completed December and January. We should be in a position to start handing over. CSTM, I've already mentioned in the last quarter, we will start billing in earnest there. Chandigarh, we've already started billing. The Veterinary Hospital and University in Bihar, which is an INR 890 crore project. We are already billing close to INR 15 crores every month. Aerocity Bharti project, we are billing close to INR 15 crores which post the NGT ban being uplifted, we hope to cross INR 20 crores every month. The retail development there only at the Aerocity, we have started billing there, and we should be billing in excess of INR 15 crores, again, post the ban being uplifted. NIIT, I've already told you we are billing more than INR 20 crores every month. So these are some of the major jobs.
Next question is from the line of Vaibhav Shah from JM Financial.
Sir, how has been the execution in the Nepal Police Academy project in the first half?
Yes. So Nepal is running slightly behind schedule because that being an EPC project, and that being a project where both the Indian government and CPWD is involved and the client is local there. Coordination has been a bit of an issue, but that project is now -- is moving. And we are about -- delayed by about 2 months there. But it's -- I think we are on track to make up lost time.
So how do you see the execution in the second half in the project?
Yes. I think, as I said, execution is the way -- the way the revenue are -- the way our contract is structured, a lot of our inflows or our share of the inflows or profits are linked to the advances. So part of that advance has come and our margins have also come. So we have actually insulated ourselves from delays in that project to a large extent, as far as our margins are concerned.
Okay. Sir, secondly, you mentioned that we have around a receivable to around INR 175 crores from Bihar. So it pertains to the Bihar animal university project largely?
No, no. That -- Bihar Animal Husbandry project was a slow-moving project in last quarter because -- there are a lot of old heritage building. It's a 400-acre campus. The campus already exist. Now this is being modernized. The old buildings are being raised to the ground and new buildings are coming up. So there was a delay in handing over the old building being handed over to us for demolition. So that is -- most of it is behind us. 60% of the area has been handed over to us.
And whatever we bill, the receivables are coming from that particular department. Most of these receivables that I said are from Bihar medical. The 2 hospitals that we are doing, 1 in Chapra and one in Nalanda.
Okay. And sir, how would be the execution in the second half for the animal university projects? Can it cross around INR 70 crores -- INR 60 crores, INR 70 crores per quarter?
Yes, yes, it will. It will.
Next question is from Bismith Nayak from RW Advisors.
Sir, if I understood it correctly, order execution will be slightly weak post election. Is that correct?
Yes, slightly before elections also, it may be affected a bit and post election also for some time, yes.
And this trend we have seen in past 2 elections as well?
Yes, yes.
Okay. And if you can just talk about the margin expansion levers Q-o-Q from 9% to 10%, around 10% to 11%. Is it only coming from other expense operating leverage?
Sorry, come again, you're talking about -- you're asking about the increase in margin that I'm projecting. Is that what you're asking for?
Yes, yes.
Yes, traditionally, the second half of the year, especially the last quarter, the March ending quarter is always the one which has the maximum run rate as well both for the top line as well as the margins. And I feel that will be the case this year also, which will drive our margin upwards. And most of these jobs were a lot of expense has already been done. Once the designing is complete, be it for CSTM, and it is substantially complete for the Chandigarh Railway Station for NIIT, now the run rate will increase driving the margin upwards.
We have our next follow-up question from the line of Shravan Shah from Dolat Capital.
So just wanted to clarify, sir, the third quarter, this running quarter. When we say it will be better on Y-o-Y. So the ban last year, if we look at it in terms of the number of days where NCR pollution ban versus this -- so how many days last time the ban was there? Because what I can see is even the last time also, we have done a Q-o-Q growth in the third quarter. And -- but you mentioned that we can see our marginal growth on Y-o-Y and not Q-o-Q. So that's the one, I need a clarification.
Yes. Because Q2, this time we've done a decent -- we've achieved a decent run rate. So -- what I'm trying to say, that is why I said year-on-year, there will be a growth in the quarter. It may be difficult to grow Q-on-Q or maintain the same run rate, especially keeping the 30-, 40-day break in mind.
Another thing which is here this quarter is even if over the next 5, 7 days, the ban is lifted, there is Chhath Puja. Now the labor -- almost all the labor has been disbanded. It has gone back to Bihar, to Jharkhand as you know, 80%, 90% of skilled workforce comes from these 2 states. They've all gone back with Chhath Puja. So they will only be coming back maybe end of this month or maybe first week of December. So that is a major hit that we're going to take.
Okay. Okay. Got it. And in terms of fund base, Nonfund-based limit. So last time, we were looking at to increase to INR 2,100 crores, INR 2,200 crores from INR 1,900 crores. So have you done it? And whatever the...
INR 100 crores more, and that's now INR 2,040 crores, [indiscernible] pandemic phase.
Sorry, sir, INR 2,040 crores is the limit now. .
Yes, yes, right now.
And how much is utilized?
This is around -- out of this, you can say INR 325 crores is unutilized.
INR 325 crores is not utilized, okay, got it. And Shobhit sir, that West Bengal land [indiscernible] is the same. So we want to monetize, but it will be post. I mean, FY '25.
Yes.
[Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments.
Thank you, everybody. We look forward to seeing you at the end of next quarter. Have a good day. Thank you.
Thank you very much. On behalf of AMBIT Capital, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.