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Earnings Call Analysis
Q2-2024 Analysis
J Kumar Infraprojects Ltd
J. Kumar Infraprojects is experiencing a pivotal moment with a historic high in awarded projects totaling INR 7,188 crores in the current fiscal year and is positioned as the lowest bidder (L1) in projects worth INR 1,640 crores. This growth is indicative of the company's enhanced bidding eligibility and its potential for securing large-scale transformative projects, which is likely to reshape urban infrastructure and experiences.
For the second quarter of FY '24, the company reported a 9% increase in revenue to INR 1,104 crores, up from INR 1,013 crores in the same quarter of the previous year. The operating margin rose by 10% to INR 160 crores with a resulting operating margin of 14.5%. Profit after tax (PAT) grew by 9% to INR 73 crores, corresponding to a PAT margin of 6.7%. In the half-year report, revenue surged by 11% to INR 2,236 crores, operating margin went up by 12% to INR 321 crores, and PAT increased by 13% to INR 146 crores compared to the previous year.
The company has a robust total order book valued at INR 16,447 crores as of 30th September '23, which spans across various infrastructural domains. Metro projects, elevated undergrounds comprise 32% of the order book, elevated corridors, and flyovers about 31%, road tunnel projects around 27%, with the remaining 10% consisting of buildings and other structures.
For the second half of FY '24, the revenue guidance stands at approximately INR 4,800 crores with an EBITDA margin between 14% and 15%. The significant new additions to the order book will primarily impact revenue from FY '25, though some contribution is expected in Q4 of the current year. Looking ahead to FY '25, the company originally projected an increase of about 15% in top-line growth, which has now been revised to a range between 16% to 17%.
The varied portfolio of projects has an execution timeline ranging from 3 to 5 years, with an average duration of 4 to 5 years due to the company's urban focus. The initial order book guidance for FY '24 was between INR 12,000 to INR 13,000 crores, but with recent developments, the company has revised the guidance to around INR 16,000 crores, showcasing an optimistic increment driven by recent L1 positions in high-value order books.
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Ladies and gentlemen, good day and welcome to the J. Kumar Infraprojects Limited Q2 and H1 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
Before we begin, a brief disclaimer. The presentation which J. Kumar 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 J. Kumar 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.
I now hand the conference over to Mr. Kamal Gupta, Managing Director, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.
Hi. Good afternoon, everyone. I'm Kamal Gupta. On behalf of J. Kumar Infraprojects, I welcome, everyone, to the Q2 and H1 FY '24 earnings conference call of the company. Joining me on this is Mr. Nalin Gupta, MD; Madan Biyani, CFO; and our IR team.
I hope everyone 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. The company is at an inflection point in terms of its corporate personality, strengthening its capacity to sustain growth in terms of order book and overall performance. FY '24 has been historic for us so far in terms of order awarding. We have been awarded projects worth INR 7,188 crores in the current fiscal with 5 more months to go. And our currently L1 in projects worth INR 1,640 crores.
We continue to grow in operational and financial capacities, backed by our powers in bidding eligibility have paved the way for securing these transformative projects, positioning us as a reliable partner in the industry. With the ability to induce larger projects, we have embarked on a venture that reshapes the landscape and elevate urban experiences.
Our in-house equipment bank stands as a testament to our self-reliance ensuring the swift progression of projects and efficient resource allocation. Timely completion, and attributes we hold dear, speaks volumes of our commitment to delivering results, exceeding expectations and honoring our promises. Our proficiency in executing complex and challenging projects demonstrate our specialized capabilities and mark us as leaders in this intricate domain.
Coming to the highlights, like we have been awarded Goregaon Mulund Link Road project by BMC for total project cost of INR 6,300 crores, wherein J. Kumar's share is INR 3,088 crores, excluding GST. The project is design, construction and operation of twin tunnel from Film City Goregaon to Mulund, including box tunnel that is cut and cover at Film City. We have also been awarded Chennai Elevated Corridor by NHI for a total project cost of INR 3,570 crores excluding GST. The project includes construction of double decker four-lane elevated corridor from Chennai Port to Maduravoyal in Tamil Nadu, total 4 packages on EPC mode under Bharatmala Pariyojana of NHAI.
Coming to the performance highlights of Q2 FY '24. The revenue from operations for Q2 FY '24 has gone up by 9% to INR 1,104 crores as compared to INR 1,013 crores in Q2 of FY '23. The operating margin for Q2 has gone up by 10% to INR 160 crores as compared to the previous year, and the margin stands at 14.5% as compared to 14.4% in the previous quarter of the year.
The PAT for Q2 FY '24 has gone up by 9% to INR 73 crores as compared to 68% in Q2 of FY '23, and the PAT margin stands at 6.7%.
Coming to the highlights of H1 FY '24, the revenue from operations for H1 FY '24 has gone up by 11% to INR 2,236 crores, and the operating margin has gone up by 12% to INR 321 crores. And the PAT for H1 FY '24 has grown by 13% to INR 146 crores as compared to INR 129 crores in the preceding year.
Our total order book as of 30th September '23 stood at INR 16,447 crores. The order book includes metro projects, elevated underground contributing 32%, elevated corridors, flyovers contributing to around 31%, road tunnel projects contributing around 27% and others, like buildings and all contributes around 10%. We also -- apart from this INR 16,447 crores, we got 2 orders amounting to INR 530 crores in Q3, and we also L1 in INR 1,640 crores as of now.
We can now begin the question and answers. Thank you.
[Operator Instructions] The first question is from the line of Gunit Singh from CCIPL. Please go ahead.
Our order book is around 4x our annual revenues currently. So -- I mean, looking at the current size of our order book, what kind of top line and bottom line? I mean, can we expect for the second half of FY '24?
So for the H2, we expect the revenue guidance that we had made of around INR 4,800 crores with an EBITDA of around 14% to 15%. As the new order book that we are discussing about will start generating revenue from FY '25, and there will be a marginal contribution that will be coming up in Q4. So for the current year, there won't be any major difference in the guidance that we have been expecting. But yes, from FY '25, we are hopeful of having an improvement in the top line that we had guided for the financial year FY '25.
Sir, can you please repeat that guidance again for FY '25.
So FY '25, we had given an upward rise of around of around 15% in terms of the top line, and now we expect it should be around in the range of 16% to 17%...
So basically around 15% increment over INR 4,800 crores?
INR 4,800 crores.
All right. 15% improvement, I mean, growth over INR 4,800 crores, right?
Yes, so -- and you would appreciate that as the base keeps increasing, there would be the growth happening on the last year's top line. It increases substantially as compared to the lower top lines of the company, which happens in the previous years.
Right, right. That is great. So what is the execution period of our entire INR 16,000 crores, order book?
So it ranges from 3 to 5 years period. Some projects are 3 years, some are 4 years, some are 5 years. But on an average, as we are an urban player, we can consider 4 to 5 years as an average time period for the entire order book.
All right. That is great. And looking at the current pipeline, what kind of order book would be closed towards the end of FY '24? What do you anticipate?
So we had given a order book guidance of around INR 12,000 to INR 13,000 crores by the end of fiscal year FY '24, which we would like to revise it to around INR 16,000 crores, which is -- as we are already L1 in good value of order books that we have seen. So there would be an upward guidance rise to the tune of around 1/3, that is 30% increase in the order book that we had anticipated. We should be closing at FY '25 close to around INR 16,000 crores is what we expect...
All right. That is great.
By FY '24, yes.
The next question is from the line of Shravan Shah from Dolat Capital.
Congratulations on strong order inflows. Sir, just to clarify, this 2 L1 order of INR 1,640-odd crores, can you help us which are these 2 projects?
These are not 2 projects, these are 4 projects. And like one is like of MMRDA, which is a flyover from very Andheri West to JVLR, costing around INR 346 crores. And the second project is at Delhi of NBCC, that's like a multi transport corporation depot, costing INR 270 crores and another one, again, is of Hari Nagar Colony of DTC of NBCC, costing [indiscernible] there's some disturbance. Hello?
Yes sir.
And the fourth project is of an elevated corridor from Grand Southern Trunk to Saidapet at Chennai. So that is costing INR 500 crores. So, it's...
Sir, the third one, Hari Nagar, the building, you said INR 521 crores.
Yes, yes, yes.
Okay. Got it. So now -- so considering -- so if I look at -- so INR 7,188 crores, we have received, plus this INR 1,600 crores. So INR 8,800-odd crores inflow is already there. So how much more are we now looking at to bag by end of March?
So like first of all, this INR 1,650 crores -- INR 1640 crores has to be converted to orders. So this will be done in coming time. And like, we have bidded -- we'll be bidding for around INR 25,000 crores to INR 30,000 crores of projects in coming in 6 to 9 months. So let us hope what will come. So like we are expecting it as Nalin also told by closing FY '24, INR 16,000 crores of order inflow by the end of FY '24.
INR 16,000 crores of order inflow?
So it's order book. Order books, I'm so sorry.
So again, just to clarify, so in terms of -- I'm particularly asking on the inflow front. So how much more -- so yes, you mentioned INR 25,000 crores to INR 30,000 crores are we -- we are planning to bid in 6 to 9 months. So roughly, can we assume INR 4,000 crores, INR 5,000 crores, is this one can assume to be received by end of March?
So Shravan, what we are trying to say is that we should be surely closing close to INR 16,000 crores by end of FY '24, and the pipelines and the projects will be bidding on different dates. Again, the tender needs to be opened. If we are L1, again, the process -- so it's a long process.
So for FY '24, we give a target now of a revised order book, which is on the upside by around 30%, which is INR 16,000 crores as against INR 12,000 crores, what we had anticipated and we had given a guidance for. So these order books are subject to, when the tenders are submitted, you should be L1.
So committing right now on those numbers, we are not adding on to the order book guidance as of now. So this is with the current order book that we have bagged and we are L1 into where we anticipate to stand at a order book of INR 16,000 crores by end of FY '24. I hope this is clear now.
Got it, sir. And then broadly, this INR 25,000 crores, INR 30,000 crores that we are planning to build, broadly, if you can break it up into segment of flyover, building, metro, road, water, broader number would help.
So it's basically around major order book. This bidding would be in the process of the express highways, your metro projects that we have been bidding in Bhopal, in Kanpur and some -- more tenders are there. Bombay Metro is what we are expecting to bid in this coming 6 months' time. So -- and also some of these projects for building sectors.
And also roads and tunnels.
Okay. Okay. Got it. Sir, when we say that 15% revenue growth for this year and next year, we are just saying a 16% to 17% kind of revenue growth for FY '25. So even one can assume because last time we have talked about 18% to 20% kind of a growth for '25 and '26 also. So how one can look at? Is it a much lower number that conservatively we are looking at 16%, 17%? But one can, practically, if everything goes well, we can see a closer to 20% kind of revenue growth for even '25, '26?
So that's Shravan. Like we are already maintaining what we are seeing. And like, we believe in surpassing what we say or what we give the guidance. So this year again from INR 4,200 crores to INR 4,500 crores, we are -- INR 4,200 crore to INR 4,800 crores, we'll be doing by FY '24. And as Nalin told, like instead of 15%, we are targeting 16% to 17% of growth in FY '25. So let's see as the time goes, like a couple of quarters, we'll see what is the ramp-up in the execution and hope for the best.
And then on the margin front, when we are seeing, what they said, definitely 14%, 15%. So one, it's already 14.4%. But last time also we said we will be likely to see 150 bps improvement in EBITDA margin in over 2 years. So can we start seeing that improvements in FY '25 itself, maybe 50, 70 bps improvement in EBITDA margin FY '25?
Yes. So like right now, what we're doing is 14.4%, 14.5%. And like as rightly told, we are also targeting a 1% increase in coming 8 quarters -- so 7 to 8 quarters and let's -- you should see some impact in the coming years, yes.
Okay. Second on -- broadly on the debt front and working capital. So this quarter, we have seen the working capital has increased, particularly, the payables actually has reduced INR 200-odd crores and that's why the working capital increase and the debt has also increased close to [ INR 127-odd ] crores. So how one can look at -- so what's the revised guidance on these numbers? Because on the debt front, we were looking at INR 550 crores, INR 600 crores. So currently, INR 643 crore debt?
Mr. Madan, can you reply to this?
Shravan, on working capital, see on quarter-on-quarter, there will be little bit of days up and down or so. But, Shravan, as you see in Q1, these were a little higher that time. But Q2 last year, if you see, it was only INR 550 crores. So vis-a-vis that, we are at INR 425 crores. So we have been able to reduce INR 125 crores by some innovative methods of discounting, payables and all and helping our suppliers and vendors to complete project faster and all.
Trade receivables, also we have been able to reduce by INR 80 crores from June '24. And then inventory, we have been able to reduce by INR 40 -- INR 30-odd crores. So these are like -- see, we are playing with such a large order book and some projects, some numbers, some payables, some results going in there. So working capital on a larger target is to bring it down to 120 days.
Okay. And on the debt front, sir?
Sorry.
On the debt, INR 643 crores gross debt that we have currently. So at the same time, GMLR, the tunnel CapEx of INR 300 crores to INR 350-odd crores, we will have to spend. So how we look at this debt level by end of this year and FY '25 and '26. Broadly, how one can look at the debt level?
The debt of GMLR, we will not come in this year, first of all. The machine will take a long time to get manufactured and delivered and all. So it will come somewhere around, not even in FY [indiscernible] end of FY '25 or so. But seeing our debt equity ratio currently, even at 0.27, we were at 0.22 at June quarter and even after having this PSL exposure and -- Kamalji will come back to on that. And we are quite comfortable, 0.27 debt equity ratio in an EPC company is very healthy, and business growth, debt will grow. So we are comfortable on that.
So we are not expecting a reduction at least by March? This number is fine?
Yes. So March '24, we are looking for a debt of around INR 650 crores only.
Okay. Okay. Got it. Got it. And just 3 numbers on mobilization, advance, retention money and unbilled revenue as of September?
Mobilization and advance stands at INR 445 crores as of Q2, and we have actually informed you that reduced from INR 532 crores to INR 445 crores. We have been able to settle some of our liability against revenue bills and security deposit receivable is at INR 254 crores, security deposit payable is at INR 234 crores. Anything else you have?
Sorry, sir, retention money, you said INR 254 crores?
So that's for retention money INR 274 crores -- INR 234 crores is payable.
The next question is from the line of Prem Khurana from Anand Rathi Shares.
Congratulations on strong orders added during the year. Sir, just want to understand, I mean, given the fact that it's been fairly strong quarter in terms of new order additions and we are targeting to a take order backlog to almost on INR 16,000-odd crores by this year. And would that need you to go and seek more fund-based or nonfund-based limits? Because, I mean, you would have to extend guarantees plus next year. I think -- I mean you would have to incur CapEx for GMLR as well. So would you need to kind of go and see more limits from your consortium lenders?
Well, so they -- we will be surely needing more limits to be sanctioned for bank guarantees, LCs, working capital, et cetera, as well as term loans. So for the Chennai project, elevated corridor, already, we have closed the bank closure with SBI.
And SBI was very keen on this -- closing the entire limit on a stand-alone basis, which has been done. For GMLR, again, we have received a sanction of already the 50% of the requirement that we need for the project. So we'll be surely needing that.
And as and when the project is proceeding, we'll be taking the limits. But for GMLR, the CapEx requirement or working capital requirement to the bigger extent would not be coming up in this fiscal year. And as Mr. Madan has already informed that we will be -- the machine will be coming somewhere by after 15 to 16 months from now. So the CapEx and term loan that's required for TBM would be happening only after that.
And so the limits, it will be increased, and we are very comfortable in managing the sales. With the current debt equity ratio of just 0.27 where the company stands, I think we get a good financial deal from most of the bankers, as we have never let them down.
Sure. And sir, on the GMLR, given the fact that you're saying tunneling machines would be required 15, 16 months hence. So fair to assume that a large part of revenue recognition would start once we have tunnels in place till then you would have to make sure that you do your groundwork and then have shafts in place and then once the TBMs are lowered, which is when we get to have a significant ramp-up in the revenue contribution from this project?
Yes. So Prem, you rightly mentioned that in this entire project of GMLR, which is around INR 6,300 crores. Around 70%, close to like 65%, 70%, comes in from the tunnel because out of the entire length of around 7 kilometers, around 5-kilometer -- close to around 5 kilometers is the tunneling work. So this revenue recognition will only start for the 70% of the component after like 20, 21 months from now.
And that's why we are giving -- we are not very -- we are not giving a guidance of 20%, 25% growth. That's the reason because even the base is increasing and these works will start contributing after like 20, 21 months from now in a sizable manner, though we would be booking some revenues by the end of the year or in the -- in FY '25, I would say.
Sure, and how about Chennai, the 4 NHAI EPC package. When do we expect to start booking numbers from those 4 packages? Because when I look at the order background, it's a flat on a sequential basis, so we will still not start booking numbers from that. So when do we expect to see these 4 projects start contributing?
Yes. So we are expecting the appointed date by mid of November coming so -- when the meter starts. And like Q4, we'll see some revenue because in the mobilization stage as of now. And we'll be incurring some CapEx towards that as well. And -- so major revenue will start by FY '24 -- '25. The work will be started from next month only.in terms of mobilizing, not the actual work because survey and thorough investigation work is already on. So Q4, we'll see a little contribution from Chennai project.
And sir, would you be able to share the land status with these 4 packages? I mean, where are we in terms of how much -- ROW is made available to you and how much more is required to be able to kind of go and seek AD. I mean, generally, you get to have AD once we have 80% ROW. So where are we today, I mean, in terms of right of way as of today?
So you're talking about the Chennai project, there are 4 packages and actually on 3 packages, these already have more than 90% of the land so that's why we are taking the appointed date for mid of November. So 1 package is having like 86% of the land. So under a couple of months, I think by December, we should get appointed date for that as well.
Sir, this 90 and 80, these are 3D's or 3G or 3H?
What do you mean by that? Sorry.
So 3D is eventually wherein a notification is given the land is yet to be acquired. 3G is when, I mean, [indiscernible] 3H is when the payment is made. So...
Okay. Okay. So I won't be able to give the exact update on that, my dear, now. The land for like this -- out of 3, 2 packages are having 100% of the land. So one is having [indiscernible]. So the land-wise, there is no issue in Chennai. So it should not be a problem at all.
[Foreign Language] I'm not sure if you gave that number earlier in the call.
INR 97 crores.
And how about unbilled and also if you could help me [Foreign Language] as of Q2 end?
INR 555 crores.
And any change in CapEx guidance? I think we would look in -- so we spent around INR 33 crores in first quarter. How much did we spend in Q2? And how much are we expecting for the balance of the year?
INR 62 crores we have spent in H1. And we think that will be around INR 150 crores total for the year, including our incremental CapEx and some CapEx will come for Chennai project.
Okay. But this INR 150 crores would include Chennai or Chennai would be over and above this?
So it can be like INR 150 crores to another INR 30 crore, INR 40 crores plus for this year, so not more.
The next question is from the line of Nikhil Kanodia from HDFC Securities.
Congratulations on strong order inflows. Few of my questions have been answered. So on the basis of the orders that we have received, so what would be the current fund-based and nonfund-based limits that we have with us and the utilization of those limits?
We had a fund-based limit of around -- sanction limit of INR 967 crores and utilized is INR 436 crores, that is around 45% fund base has been increased. And for nonfund-based, we have a limit of around INR 3,600 crores, where around INR 2,500 crores has been utilized. So Nikhil, it would be around 71% and total utilization is 67% on an average basis.
Okay, okay. And as on date the -- total order book that you have mentioned, what would be the percentage of the order book, which is under execution?
Which is under?
Execution. So like all the projects are -- whether all the projects are mobilized, whether -- like we are seeing some execution on the ground or is it like some formalities are pending for those projects?
Probably around INR 9,000 crores is under execution, which excludes the INR 7,000-odd crores order that we have been bagged in this fiscal year.
Plus on the other projects also, the mobilization is on. So like this INR 3,600 crores the mobilization has already started taking place, yes.
The next question is from the line of Parvez Qazi from Nuvama Group.
So my first question is regarding CapEx, you said we'll have maybe about INR 150 crores to INR 180 crores of CapEx this year. What kind of CapEx can we foresee for FY '25 considering the TBM, et cetera? Will this probably come then?
So like for '25 as to we told like the TBM partly should be delivered. So -- and like -- I think '25, we'll see a CapEx amount-wise of around INR 350 crores to INR 400 crores.
Sure. And it would be great if you could give us status of some of our major projects like the metro lines that we are doing in Bombay, Surat, et cetera, while we know the order book figure, but in general, how is the execution, et cetera, progressing there?
So the metro line 3 is 90% completed and the department is planning to open the first phase by Jan-Feb coming year. And metro line 9 is almost 50% completed. Metro line 2B is 40% completed. Metro line 6 from Andheri West to Powai is 70% completed. And Navi Mumbai metro is 100% completed, which will be inaugurated [indiscernible] by honorable PM.
Pune metro is almost 95% completed. And Delhi metro, also, like the work has been full swing and we have done 16% of the project, revenue got. And like Surat metro 31% is completed. Santacruz-Chembur Link Road is like 90% plus completed. Sewri-Worli, which is a connector from coastal road to MTHL is 60% completed. And Dwaraka package 1 and 2 of Delhi is around 77% complete. These are some of the major projects what I've highlighted.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, this INR 1,640 crores L1 project, so broadly, when we expect -- when can we expect the LOI?
So LOI should come in another -- like we expect the LOI to be there in next month only, by November.
Okay. Okay. By November itself? Okay. Got it. Second, sir, on this number, just to again, verifying the number. Unbilled revenue, I think when I asked you said INR 454 crores and then you said INR 555 crores so can you -- 3 numbers, can you again, verify mobilization advance, retention money and unbilled revenue? .
Shravan, first of all, you had not asked unbilled revenue. Unbilled revenue is INR 555 crores. .
Okay, and mobilization advances?
Retention receivable is INR 274 crores and-- mobilization advance is INR 445 crores.
INR 445 crores? Okay.
[Operator Instructions] The next question is from the line of [ Abhijit Periwal ], who is an individual investor.
Congratulations on a very strong order inflow. I wanted to understand if you could elaborate on the PSL exposure first?
Yes. Sure, Mr. Abhijit. So like PSL is like we have bidded for this NCLT project of PSL. So this is like we were bidded for INR 106 crores for this project. And like this is a small gestation period wherein like we see upside of around 40% to 50% in this. And 12 to 18 months, the project will be done. So we have availed the facility of INR 90 crores of funding separately for this. And like this repayment will be done through the sales process of assets. This is without impacting the liquidity of the company. So this is like just one other project for us, which will add up to the bottom line.
Okay. Okay. Great. And sir, I understand that over some time now the TBMs will get free. Any prospective underground projects that you are looking at to bid in the near future?
First of all, Mr. Abhijit, the TBMs are not getting free now rather we have utilized -- we are utilizing the TMBs in these new projects, like Surat, Delhi or Line 9. All the 3 locations, utilizing the new TBMs. So this will take like another 2 years -- 1.5 years for the TBMs to get through.
So -- and of course, we are also bidding for new projects of underground metros also wherein like this TBM can further be reutilized. So as you see like this is -- some of the TBMs are used on third or fourth project, is that way. So we have really churned the assets, yes.
Yes. So if you can tell me what are the prospective underground metro position that you might bid in the new future? I think, maybe that would help?
Yes. So there are a lot of projects coming in MMR also and outside MMR also. MMR, there are 3, 4 projects coming from -- we were -- like Thane, Bhiwandi. So there is one underground there. So one, again, is from GPO to this line 11 underground.
And one more will be from this thing -- domestic to international, New Mumbai. So there is a couple of projects in MMR plus like we have already bidded for Bhopal project that is underground, and there's some more coming up in other states. We'll be bidding for this underground as well where the TBM to be utilized.
Okay. Okay. And final question, sir, is regarding this Versova-Dahisar, the whole project, which is there. When are the bids expected to be done?
So already the prebid has happened, and we expect by the end of this week or next week's maximum, we should be seeing the common set of deviations. the pre-bid replies been uploaded by the corporation. And so in this month, for sure, my -- I'm very hopeful that we'll be bidding for this Versova-Dahisar.
So the bidding should happen by November, right?
End of November.
And you would be bidding -- so I think there is INR 16,000 crores to INR 20,000 crores worth of projects so how many -- the total project size is I think INR 16,000 crores, 6 packages are there. How many are you looking to bid?
Yes. So it is around INR 18,000 crores is the value of these packages, and we'll be bidding for this, for sure. So we are hopeful of bagging some order books from this area as well. We are very hopeful on this.
The next question is from the line of Vishal Periwal from IDBI Capital.
One clarification. GMLR, the order size of 6,300 it includes EPC and maintenance both or it's only EPC?
Well, so 6,301 is the DB cost that is design and build and operation and maintenance, which is for the period of 10 years, we'll be getting paid another like INR 350 crores for it. And there are some other items also. But as of now, we can just take this as DB [indiscernible] is separate for it.
It's on top of it? Okay. Fine. And then second thing, you give a guidance for the order book of around INR 16,000-odd crores. And if we do the revised working -- like reverse working, the inflow comes out around roughly like INR 9,000-odd crores kind of inflow this year. And based on what..
I'm sorry, but can you be little louder, Mr. Vishal, because we missed your question.
Is this better?
Yes, yes.
Yes, yes. So what I was saying is we have given the order book guidance of around INR 16,000 odd-crores, which you revised upward. And if you do a reverse working in this order book inflow comes to around INR 9,000-odd crores in FY '24. And based on year till date inflow in L1, we are almost touching like INR 9,000-odd crores in this year. So I think we are bidding for a couple of projects and then pipeline is also healthy. So I mean, isn't that -- our guidance is a little bit on the conservative side on this front?
Yes, it is on the conservative side. But like we believe -- like when the project comes, it's better to say that. Because right now, the L1 projects will be converted to orders and then we are bidding for this. And in this process, maybe because of election, some of the new coming tenders, may go a month here and there. So it's better like when the inflow is in so INR 16,000 crores itself is a good number, which is a upwards rise of 30% from INR 12,000 crores what we've initially -- in Q1, we have guided.
And till you submit the tenders -- because there is a lot of process that happens before the submission and post-submission, there is evaluation, bid opening. So that's the reason why we are not really counting any major chunk of orders coming in from the new pipeline bids that we will be submitting. So it's a safe and conservative figure that we have given to you.
[Operator Instructions] The next question is from the line of [ Arpan Rathod from ThinkInvest ].
My question is regarding the bank limits. So what would be the average cost of fund based debt and nonfund-based debt?
So it's almost 10% for the fund based -- 9% to 10% for the fund-based and for nonfund based, it's around 1% for BG commission.
And does it hold good for the new sanctions which you mentioned some time back? or for the new sanctions, whether it will be better or not?
In fact, we are taking. Yes, yes, absolutely.
So that would also be in the same range, right?
Correct. Yes, yes.
Our banking team is trying their best to even negotiate on these values.
Yes, because that would be a huge impact on the finance cost if we can better those terms?
Yes. We are planning for an upgrade also. So let's see. If we get that, like, that will be a good impact on these numbers.
Okay. My second question is particularly on ROC considering that a huge amount of CapEx is involved, which will entail higher debt levels. So what is the ROCE level which we can expect going forward?
So FY '23, we were at 17.6%. Now we are down some [ 15.5% ] or so ROCE because obviously, once your debt increases and all. But overall, considering our EBIT numbers and all going forward, we -- by FY '27 when we reach our $1 billion revenue or so, we should be around in the range of 20%, 21% or so.
Okay. That's good. My another question is on the coastal road project. Is that project started? Or it still will take some time?
That could be one, which is under execution...
So yes, the coastal road project what you're saying is like the MOF clearance from Delhi has been received last week only. So luckily, like, all the clearances are there. So I think another 2 weeks, they just need to take a confirmation from the court and the project will be started. So I think another 1 month -- by December the project should start.
The next question is from the line of Nikhil Kanodia from HDFC Securities.
Sir, I had one clarification. So the order input that you have given in your presentation is FYTD '24 correct,? Which would mean that it includes the INR 530 crore order that we have won in Q3?
Sorry, Mr. Nikhil, can you just repeat it, please?
So the order input that you have given in your presentation of INR 7,200 crores, that is FYTD, right? So that would include the INR 530 crores that we have won in Q3 as well?
Yes, yes, exactly. You're right. right.
And sir, what would be J. Kumar's share in that?
What is our share? So that's our share of amount only FY '24 what we have told. So the INR 7,200 is all our share -- J Kumar's share.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, this INR 431 crores military hospital that we received in Lucknow. So it has an O&M component also which to be exhibited over 60 months and the rest is 30 months. So just broadly, if you can help us what could be the O&M value?
I think O&M value is around INR 16 crores. I'm not very sure, but it's a very minor...
Okay. Okay. Okay. That's the only -- it's a very small, not the larger 20%, 30% of the value. That's the only thing I wanted to clarify. And second, sir, considering though we are not saying that -- or rather, we are not counting any major order inflow this year until March, but if I look at from now onwards to FY '25, so there also one can look at INR 8,000 cores, INR 9,000 crores kind of order inflow, that's the way one can look at?
Let's hope for the best. This is what I would say.
[Operator Instructions] Well, as there are no further questions, I would now like to hand the conference over to Mr. Kamal Gupta for closing comments.
Yes. I would like to extend thanks to each and all for joining us on this call today. We sincerely hope that we have been able to address your queries. If you have any further questions, needs clarifications or wish to share feedback, please don't hesitate to reach out to our CFO or our dedicated Investor Relations team. Thank you once again for your time and participation. Thank you so much.
On behalf of J. Kumar Infraprojects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.