Capacite Infraprojects Ltd
NSE:CAPACITE
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
Financial Services
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Mastercard Inc
NYSE:MA
|
Technology
|
| US |
|
Abbvie Inc
NYSE:ABBV
|
Biotechnology
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Realty Income Corp
NYSE:O
|
Real Estate
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
195.3
400.7
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Mastercard Inc
NYSE:MA
|
US |
|
|
Abbvie Inc
NYSE:ABBV
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Realty Income Corp
NYSE:O
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to Capacit'e Infraprojects Limited Q2 and H1 FY '23 Earnings Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which Capacit'e Infraprojects has uploaded on the stock exchange and their website including the discussions during this call contains or may contain certain forward-looking statements concerning Capacit'e Infraprojects' business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Katyal, ED and CFO, Capacit'e Infraprojects. Thank you, and over to you, Mr. Katyal.
Thank you. Good afternoon, everyone. On behalf of Capacit'e, I welcome everyone to the Q2 and H1 FY '23 Earnings Conference Call of the company. Joining me on this call is Mr. Alok Mehrotra, Mr. Nishith Pujary and our IR team. I hope everyone has had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our company's website. Today, as we witness remarkable transformations within the real estate space, we understand we need to align our priorities with that of shifting customer expectations. Our ability to consistently morph ourselves and capitalize on emerging opportunities has empowered us to lay the foundation for sustained growth and progress. With our healthy order book and sustained order inflow, and our expertise in executing and delivering projects, we are optimistic that we shall witness a healthy and sustainable growth in the future. Our key updates. Total awarded projects worth INR 2,147 crores, excluding GST in H1 FY '23, including work order amounting to INR 1,249 crores for MAHADA BDD project awarded by Tata Projects Capacit'e JV. Upgrade in credit rating to BBB+ from BBB by India Ratings and Research. The company expects sanctions of non-fund base limits very shortly. The sanctions have got delayed by 45 to 60 days. However, once the actions are in place, the company expects release of retention monies and advances to the tune of INR 100 crores, which will improve the operating cash flow as well as overall working capital by likewise amount. We are happy to inform that the company has signed settlement agreements for 2 of the old stack projects with Radius Group. Further, the Honorable High Court has given a favorable verdict in favor of the company in the case of IGIMS project, which was port monitored and the whole amount of INR 3.55 crores has already been released. We expect positive cash flow impact to the tune of INR 55 crores, including the amount already received on account of the above over the next 3 quarters, starting from the current quarter. Performance highlights for Q2 FY '23. Revenue from operations for Q2 FY '23 grew by 25% to INR 431 crores as compared to INR 345 crores in Q2 FY '22. EBITDA for Q2 FY '23 grew by 26% to INR 84 crores as compared to INR 67 crores in Q2 FY '22. EBITDA margins for Q2 FY '23 stood at 19.4% as compared to 19.2% in Q2 FY '22. PBT for Q2 FY '23, grew by 17% to INR 29 crores as compared to INR 25 crores in Q2 FY '22. PBT margins stood at 6.8% for Q2 FY '23 as compared to 7.2% in Q2 FY '22. PAT for the quarter FY '23 grew by 15% to INR 22 crores as compared to INR 19 crores in Q2 FY '22. PAT margin for Q2 FY '23 stood at 5% as compared to 5.4% in Q2 FY '22. Cash profit after tax for Q2 FY '23 grew by 15% to INR 51 crores as compared to INR 44 crores in Q2 FY '22. Performance highlights for H1 FY '23. Revenue from operations for H1 FY '23 grew by 45% to INR 908 crores as compared to INR 626 crores in H1 FY '22. EBITDA for H1 FY '23 grew by 70% to INR 185 crores as compared to INR 109 crores in H1 FY '22. EBITDA margin for H1 FY '23 stood at 20.3% as compared to 17.3% in H1 FY '22. PBT for H1 FY '23 grew by 118% to INR 68 crores as compared to INR 31 crores in H1 FY '22. PBT margin H1 FY '23 stood at 7.4% as compared to 4.9% in H1 FY '22. PAT for H1 FY '23 grew by 84% to INR 50 crores as compared to INR 23 crores in H1 FY '22. PAT margin for half year FY '23 stood at 5.5% as compared to 3.7% for corresponding period last year. Cash PAT for H1 FY '23 grew by 82% to INR 127 crores as compared to INR 70 crores in H1 FY '22. Cash PAT margin stood at 14% for H1 FY '23 as compared to 11.1% H1 FY '22. Gross debt stood at INR 365 crores, excluding promoters debt, with gross debt-to-equity at 0.3 approximately. Net debt stood at INR 190 crores, excluding promoter's debt. The company's continued its focus on working capital management and quality of order book. The working capital cycle, excluding retention, improved from 91 days in March '22 to 88 days in September '22. Order book on a sustainable basis -- on a stand-alone basis stood at INR 9,026 crores as on September 30 '22. Public sector order accounts for 74%, while private sector was 26% of the total order book. We remain optimistic on India's recovery amidst the continuing global geopolitical uncertainty. Before taking the Q&A, I would like to reiterate the vision of the company. To improve the working capital cycle and bring it down to 60 days, excluding retention, by Q1 FY '24. Our endeavor is to reduce leverage levels in medium term. Objective is to continually improve shareholders' return ratio by investing in people, technology and processes. I'm now available to take the Q&A.
[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.
Congratulations on a very, very good set of numbers, especially on the EBITDA margin. Sir, the -- sir, if I remember correctly, I think we had given a guidance of INR 19 billion for FY '23, is that number right? And are we on the track with the guidance?
We have given a guidance of INR 1,800 crores for the financial year '23. And yes, we are on track to achieve and better that target.
Okay. Second, sir, we have received the order inflow from MAHADA BDD project of INR 1,249 crore. Does this -- can we expect a larger amount as they enter FY '24 and FY '25? And has the work started and have we started booking the revenues?
So we have booked close to about INR 14 crores revenue in H1. The work on 6 towers has already been started, 4 by Tata Projects and 2 by Capacit'e. We expect the work to start on 16 towers in the current fiscal. So yes, going into the next financial year, you will see decent revenue being booked which will grow by approximately 30% to 40% year-on-year thereafter.
And sir the question is that will we get further order inflow from MAHADA BDD project as we go forward?
Yes, yes, yes. So we, at this time, removed the order on the consolidated basis, which our share is INR 4,032 crores. This will now come into the stand-alone order book position of the company, of which INR 1,250 crores has already been received. That leaves another INR 3,000 crores of orders to come from the Tata joint venture in the following years.
Understood, sir. Lastly, sir, how does the outlook looking for the order inflow from a 12-month perspective from the government side and the private side?
We would like to maintain what we said last time. Our target for the current fiscal is INR 2,200 crores. Apart from what we have already, we are lowest in approximately INR 800 crores of projects, which would get translated into order book in the current quarter and next quarter. So we will be beating by some margin the target of INR 2,200 crores, which we have set internally for the current financial year. Similarly, next financial year, we should be targeting an order inflow of about close to INR 2,600 crores to INR 3,000 crores. And with the bid pipeline, our qualifications, our client base, repeat order history, we expect to do that quite comfortably.
[Operator Instructions] The next question is from the line of Parikshit Kandpal from HDFC Securities.
Congratulations on the recent quarter. Sir, my first question is on the CIDCO project.
I cannot hear you clearly. Can you please take the handset, I request you?
Is it better now?
Yes, better. Please tell me.
Congratulations on a decent quarter. So my first question is on the CIDCO project. So what is the status on the execution update there?
So we have done an execution of close to INR 86 crores in the last quarter, the momentum carries on. We expect to cross more than INR 100 crores in this quarter and INR 150 crores in next quarter.
I think previously we used to target about INR 750 crores to INR 800 crores of peak execution. When do we expect like to start achieving that? So in FY '24 as per the schedule, how much do you think we can execute from the CIDCO project?
So the client has given in writing to start the work on the location #7 from January onwards, and they have also approved another extension overall of 21 months, which means that our peak execution should start coming from quarter 1 of the next financial year, which we have informed you. But we couldn't reach the peak because the location #7 at Novatek, while it was handed over on paper, physically, it will come to us by December end.
So what could be that number for next year? Starting from Q1, how much execution you expect to do from that?
We expect to start with INR 60 crores to INR 70 crores and peak it up at INR 75 crore average.
So per month you are saying?
Per month, per month. So when I say INR 86 crores for the quarter. So this quarter, as I told you, we will -- the target is to do -- just give me a second, about -- close to about INR 94 crores plus escalation, so it should be about INR 100 crores, followed by INR 150 crores in quarter 4 of the current fiscal plus price variation.
Then in Q1 of next year, you start doing about INR 200 crores plus?
Absolutely.
Great. Great to hear that. And has the last tranche of the relation advance come in, I think it's about INR 125 crores was pending.
I explained this to you, Parikshit, last time also. Once the balance land is available, we shall approach the client. However, at the moment, INR 130 crores of advance has already been reduced, recovered by the client from the earlier advance of INR 337 crore.
And sir, lastly on this, the land. So what is the total size of the project, which is under execution? And with this new parcel coming in, how much will the sites go up?
So 6 site is INR 2,150 crores, excluding infrastructure works. And that availability is fully available. We have mobilized all the aluminum homework, except 4 which will be available at site by next month end. So there is -- all the sites are fully manned, are fully equipped and with all the resources. And therefore, we are extremely optimistic of achieving the INR 150-plus crores target for quarter 4, but if not better.
And the last site is, how much do the overall order book, the one you said we'll get in January?
So December end is the Navare plot, which will be about INR 2,000 crores.
And you're also saying you have taken up some -- if I remember correctly, some other developers are lagging behind, and I think you were in talks with CIDCO, was approaching you to execute their projects. Any update on that?
So that is going on. We would be the last person that we do someone of others work. However, at the moment in time, I think we are focused first on getting that INR 4,000 crores. The sales response to CIDCO has been very good. You have been reading in the newspapers that a slap cycle of 8, 9 days is already being achieved by each contractor and that can be better to maybe 6 days, 7 days. From that perspective and the response, which is CIDCO has received, we believe that there could be an increase in the scope of work for all contractors, and we will be a part of that.
[Operator Instructions] The next question is from the line of Parvez Qazi from Edelweiss Securities.
Yes. Sir, my first question is regarding the MAHADA project. What was the execution that we did during the current quarter there?
So we have built INR 14 crores for the MAHADA project, and out of the 2 buildings, which we are executing. And as I told, that total 16 buildings will be under execution by end of the current financial year.
So next year, I mean, what kind of execution can we see in this project?
See, one building is equivalent to INR 140 crores to INR 150 crores. And therefore, the total scope available will be INR 2,240 crores, out of which our front availability will be INR 785 crores. And the construction period of that is 2 years. So we should safely assume that INR 350 crores will -- should be the revenue provided we get the frontage of INR 785 crores in the next year and the balance in the subsequent year.
Sure. And second question is on our limits. I mean what are our fund and nonfund-based limits currently? And once the additional facilities get sanctioned, what kind of increase can we see there?
You see that the overall nonfund-based untied-up portion is INR 300 crores, which has led to a temporary increase in the fund-based limits. So we are expecting tie-up with our lead bank, State Bank of India, Punjab National Bank and a couple of other new entrants. So 2 sanctions are expected in November, 1 sanction is expected in December. Now this results in we getting our release of nearly INR 100 crores of retention, and yes, about INR 80 crores of advances which have not been claimed at the moment in time. So overall, there is an impact of INR 180 crores from cash flow perspective, number one. And number two, out of this, we are anticipating that about INR 100 crores will come in this financial year.
Got it. And lastly, on the bid pipeline front, I mean, obviously, our order intake has been much better than expected. Going ahead, which segment as in, be the private or public sector and within that, whether institutional or hospital or which segments are we expecting our orders to come from? That would be the last question.
We are more focused on institutional at the moment in time because the revenue buildup happens much better, number one. Number two, they are mostly the government projects now as per the guidelines that are coming on EPC model, which gives us an opportunity. And thirdly, of course, hospitals, we are executing 3 at the moment in time, and endeavor will be to add maybe a couple of more over the next 3, 4 quarters. The focus will be more on institutional, commercial. However, residential has remained our core strength, and on absolute levels that will also continue to grow. So the big pipeline is humongous. However, we will have to add up the pick and choice policy. So RLDA is a new client, which we have submitted our bid for the Chandigarh railway station on an EPC basis. There are projects in defense, which we are eyeing to bid in the current quarter. Similarly, there are projects of hospitals in both PWD, CPWD and MCGM, which we are targeting to bid. Going forward, there is a lot of scope for depot constructions for clients like MMRDA. So just to give you the flavor of the projects will be more institutional whether you call it commercial, whether you call it hospitals or you call it a railway station development. So basically, all cash contracts are more of them on EPC basis.
The next question is from the line of Ankit Babel from Subhkam Ventures.
A few questions from my side, sir. Sir, what we understand typically Q -- sorry, H2 is better than H1 for any infra company and for you also. Now we have already done some INR 900 crores plus of turnover this year. So what kind of revenue you see you can do it in this financial year, considering the first half performance?
[Foreign Language] more, isn't it? So now the point is that we should be growing with our original estimate at more than 35% in the current financial year at INR 1,800 crores. So whatever extra if that happens, please take it as bonus. The company remains focused on execution and also on recovery of its old receivables. That is the priority for the company at the moment. And it will also depend -- because we have just started the Bhandup hospital project, it's yet to see -- we are yet to see how the revenue buildup happens over there. And I'll be able to give you a reply to this answer more confidently when we meet for the Q3 earnings conference call.
Okay. So after FY '23, I mean, what kind of CAGRs you are looking for the next couple of years based on the order book and the visibility on the order inflows, whatever you can?
Give you that our commitment to the client is somewhere between 22% to 25%. That's what the company has been doing since inception, except for these 2 years where -- which were marred by COVID and other external factors, which -- on which company had little control on. However, we are confident -- we are back to pre-COVID levels. In most ways, we should be back at the net working capital by Q1 of '24. And therefore, we do believe that the company has ample opportunity to grow in excess of 20% to 23%, if not more than that over the next 3 years.
So basically, why I was asking this question was because in the COVID years, your order inflows were almost negligible, right? So will -- can that 2 lull years of inflows impact your growth in the coming couple of years?
How can that -- how is that possible? I just told you that our order book is close to INR 10,000 crore -- INR 9,000 crore. And apart from that, we are L1 in another INR 800 crores. So we are looking to close the year at INR 9,000-plus crores. So that gives you visibility for at least 3.5 years at the CAGR we have just mentioned.
Okay. Okay.
And it would be wrong to presume that we won't bid for the next 3 years. So what I'm trying to say is we are giving our projections on the basis of the current order book.
Okay. Okay. That's helpful, sir. Sir, I missed your initial remarks, you were saying something about the debtors reversal and all those write-backs. I couldn't get that. Can you please repeat?
Yes. I mentioned that our expected credit loss, ECL provisioning on gross basis is close to INR 100 crores. On a net basis, it's about INR 90 crores. And this also contains about INR 25 crores of provisions done for the Radius Group, all right, or more. So we have signed the settlement agreements for 2 of the old projects of Radius Group, which should release INR 26 crores, INR 27 crores over the next 2 to 3 quarters, number one. So this will improve the cash flow of the company. Number two, the Honorable High Court of Patna has given us a favorable verdict in the case of IGIMS, Patna, which is a port-monitored project. Subsequent to the verdict, the client has released bank guarantee and the hold amount of INR 3.55 crores. Currently, the final bill is under recording. Subsequent to that, our escalation bills will be recorded. And subsequent to that, that is in January, our retentions will become due and payable. So we expect a total of INR 55 crore release from the old project, which will go directly into the cash flow of the company over the next 3 quarters.
Okay. So assuming that whatever you just said happens the way you have said in the next 3 quarters, so -- and plus you'll have internal accruals and all execution and everything, so any time line when you feel that you people can become debt free at net level at least?
Our net debt is about -- 1 minute, I'll just check. INR 190 crores, okay? So I have been telling that to go net debt free, we require INR 150 crores of our retentions and advances to come in, number one, which is only a matter of bank guarantee issuance and it's round the corner. Number two, we -- this I have told maybe a year back in the conference call also, that we expect the banks to reduce our margins from the existing level. A 5% reduction of margin releases INR 85 crores, so this collectively is much more than our total net debt. Our intention is not to go net debt free. Our intention was to go gross debt free, but the 2 years impact may have delayed the program by a year or so, but the intent remains the same. We will be overly cautious while choosing our clients. However, given our current client order book, current clientele, when we worked with them during COVID and subsequent to that also, we have not seen any slow-moving debtors from them. So this all goes well for the company.
So basically, in the next, say, 4, 5 quarters, you believe that this is possible?
Yes, it is. I just told you with the details. So you have to ask me with whether the retention was released. If I say no, then I am not net debt free. If I say yes, we are net debt free.
True. Okay. And sir, my last question is just a follow-up on that Radius Group. You mentioned that INR 25 crores to INR 27 crores of amount would get released. So -- and you have already provided for this, so whenever this money will come, there will be provisions write-backs also in your P&L, right?
So at the moment, I am committing the receipt of inflows. Yes, there will be write-backs, but then the ECL is here to stay. So you have to make provisioning on retention. You have to make provisioning on debtor movement, uncertified bills, certified bills. So what will be the reversal, we will be able to tell you exactly in quarter 4. But yes, there will be something. And as I told you, the gross provisioning is at close to INR 100 crores plus. So out of this, nearly 60 -- just a minute. how much is the gross provision for the year? Out of this, the total provisioning for Radius is INR 34 crores. And yes, there will be a reversal of the provision. But the exact amount on a net basis, we will communicate during our next quarter conference call.
The next question is from the line of Shreyans Mehta from Equirus Securities.
Congratulations on a good set of numbers. So my question is pertaining to our CapEx. So can you guys give a guidance for CapEx for this year and next year? And how much have you done until late?
So the total CapEx for the current financial year would be restricted to INR 60 crores, INR 63 crores or thereabouts. INR 50 crores has already been done. We do not foresee any CapEx during quarter -- current quarter. We foresee a CapEx of close to INR 10 crores to INR 12 crores in quarter 4. In the next financial year, we see a CapEx of INR 40 crores to INR 45 crores.
INR 40 crores to INR 45 crores, sure, sure. Sure. And sir, second question is pertaining to our interest cost, what would be our cost of debt currently? And since our credit ratings have improved, how much benefit will you get in the coming quarters?
Coming quarter is difficult to say. But yes, you will see a dip down in the next financial year. Because after the rating is upgraded, the banks move it, it goes to their various committees, sanction comes, documentation is done. So you will see some benefit in quarter 4. But if you have to see on a sustainable basis, you should see that in the next financial year. Also, we will be approaching the rating agencies again in the next -- early next financial year to have a look on how our performance has been. And we believe that we should be back to where we were prior to believe downgrade.
Got it. Got it. Sir, any sense on the current cost of debt?
I do not have it in front of me ready, but I will tell my team to call you up and discuss it with you separately.
[Operator Instructions] The next question is from the line of [ Agam Shah, ] individual Investor.
Most of my questions are answered. Just a follow-up. So I believe INR 100 crore around is what the retention money is there. And broadly around INR 35 crore to INR 40 crore is about the Radiant and the other settlement money which is coming. So is it a fair way to look at it as a broad number of INR 120 crore to INR 140 crore, which we'll be expecting in the next 3, 4 quarters?
See, I just explained to you that the retention is not INR 100 crores, the retention is INR 169 crores. Out of which we are expecting a release of INR 100 crores over the next -- current quarter and the next quarter. Now that figure could be INR 70 crores. That is our target. Apart from that, we have to collect advances of close to INR 80 crores, right? So total inflow which we are expecting, we have given a guidance of INR 70 crores for the current financial year, but that can improve provided the entire bank guarantee limits are in place. So you can note it down, we are targeting INR 100 crores of release of retention. We are targeting close to INR 80 crores of advances. And our target is that our release from the old outstandings should be close to INR 55 crores. Now this is not going to happen all of that in quarter 4, it will -- I have given a guidance for 3 quarters. So that means quarter 4, quarter 1 and quarter 2 of the next fiscal. But this collectively means that the company's hold up funds nearly amounting to INR 235 crores will come in the system. And when it comes in the system, it will not change the creditor profile or the creditor level, it will have a multiplier effect. Your net working capital will come down drastically, and that is why our target for Q1 of next fiscal of 60 days, just do your math, you will arrive at the same figure. And obviously, we'll also reduce the debt by at least 50% or maybe 40%. Therefore, the answer which I just gave to the previous caller of how you will go net debt free.
The next question is from the line of Riddhesh Gandhi from Discovery Capital.
I just wanted to understand how is the competitive intensity in terms of bidding the both on the private side and the government side?
So private sector, I think, is coming back to the bigger contractors. Now every -- all the contractors are quite busy. Order books are full. So I do not know what will be the appetite to take private sector jobs of various contractors. We are more focused on the quality of the clients, which we have, and we will be focusing on repeat orders from those clients. Until unless -- so in the last 12 months, we have only added Adani to our new clientele list. On the public sector side, we have added GiftCity. We have added -- we should be adding IOCL over the next 15, 20 days' time. So I think we have -- on our bid pipeline, we have added RLDA, Railways and we'll be adding Ministry of Defense on the bid pipeline side. So the competitive intensity in projects which are below INR 250 crores, INR 300 crores continues to be high, but the competitive intensity comes down drastically when the order size is more than INR 400 crores to INR 500 crores or INR 600 crores in the public sector. When you do -- when you look at that size of orders, there are only 8 or 9 parties who qualify across India.
Got it. So I mean, in terms of is the difference typically between L1 and L2 in PSU deals, is it reasonably small? Or is it reasonably broad? Or how should we look at it from that? I asked that because initially, I think a few years ago, you have focused on private because we thought public was more L1-oriented. So how should we be then looking at it...
It's a very good question. Now the point is that in private sector, there is no L1, L2. It is more of your -- the presentation on the technical side, your logistics plan, your time completion schedule and you may be L2 and you will get the project. And it also very directly depends on the client experience. And if you have had the opportunity to visit our sites, the quality and our methodology what we follow, is self-explanatory. That's on the private sector side. On government sector side, we are not bidding for small projects where there is the competitive intensity is very high. Like GiftCity, there were only 3 bids; IOCL, there were 5 bids. In RLDA, there are 5 or 6 bids. So we are looking at the projects where we do not have to compromise on our cumulative EBITDA. So the focus will continue in that fashion. We are not -- we do not have any hurry to go and book orders. There are enough orders with the company to take care of its growth plan for the next 3 years.
And the receivables on the government side also hasn't been a problem?
Not at all. On the government side, there was only a problem with IGIMS, which I informed has been resolved. And over the next 2 to 3 quarters, you will see the money coming in.
[Operator Instructions] The next question is from the line of Khushbu Jayesh Gandhi from YES Securities.
Sir, I joined the call little late, so sorry if you have answered this question earlier. On the MAHADA site, the 7 sites, so what is the status of the land? And do we expect anything coming from 7 sites in quarter 3 or quarter 4?
You're talking about MAHADA or CIDCO? Are you talking about MAHADA or CIDCO?
Sorry, it's CIDCO, CIDCO.
So CIDCO, 6 locations are already available, valuing INR 2,108 crores or thereabouts. And the remainder land has been committed by the client to be handed over by December end. And therefore, the work on the seventh location also will start from quarter 4 of the current fiscal. And therefore, we do believe that the revenue buildup per month will be close to INR 50 crores from quarter 4 and will peak out in quarter 1 of the next financial year.
Khushbu, do you have any further questions?
Hello? Am I audible?
Yes. Did you hear my answer?
Yes, yes, sir. So one more thing, sir. The INR 50 crore, which we are expecting from quarter 4 will be only from the seventh site or totally from the CIDCO project?
Madam, the seventh site is being handed over in December end. So obviously, it will not -- it starts gradually and then peaks out. So therefore, the target is INR 50 crores, about INR 40 crores, INR 45 crores coming from the 6 existing locations, and smaller portion from the new location. From April quarter onwards of '24, we will start peaking close to INR 70 crores of all the locations put together.
And sir, can you give us the guidance of how much would we be expecting from the CIDCO project in FY '24?
Madam, I just told you that overall projection will be 20%, 23% growth. So if our guidance for the current year is INR 1,800 crore, so we should grow by 25% at least in the next financial year and maybe INR 600 crores to INR 700 crores at the moment is the guidance. But as I told you, there is a scope of improvement because the development that CIDCO is handing over, the seventh location by end December has come in return.
As there are no further questions, I would now like to hand the conference over to Mr. Rohit Katyal for closing comments.
I would like to thank you once again for joining this call today. We hope that we have been able to answer your queries, please feel to reach out to our IR team for any clarifications or feedback. Thank you and see you next quarter. Bye.
Thank you. On behalf of Capacit'e Infraprojects Limited that concludes this conference. Thank you for joining us, and you may now disconnect your lines.