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Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Q4 FY '22 and Full Year FY '22 Conference Call hosted by Anand Rathi Shares and Stock Brokers Limited. [Operator Instructions]
I now hand the conference over to Mr. Meet Parikh from Anand Rathi Shares and Stock Brokers Limited. Thank you, and over to you, sir.
Thank you, Peter. On behalf of Anand Rathi Share and Stock Brokers, I welcome everyone to the Q4 FY '22 and full year FY '22 earnings call for J. Kumar Infraprojects Limited.
From the management side, we have Mr. Dr. Nalin J. Gupta, Managing Director; Mr. Madan Biyani, Chief Financial Officer; and Mr. Arvind Gupta, VP Taxation. We will start with the opening remarks from the management regarding the industry, the result, and post which we will open-up for an interactive Q&A. Over to you, sir.
Good afternoon, everyone. On behalf of J. Kumar Infraprojects, I welcome everyone to the Q4 and FY '22 earnings conference call of the company. Joining me on this call is Mr. Madan Biyani, CFO; Mr. Arvind Gupta, Vice President, Taxation 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.
Before I share the company's financials and operational performance, I would like to introduce Mr. Madan Biyani, company's new CFO, who has joined us recently. Mr. Biyani is a chartered accountant with an overall experience of around 23 years in various verticals of infrastructure development, such as roads and highways, metro rail transport system, greenfield airports and others.
We are glad to announce that we have surpassed pre-COVID levels in terms of operating activities and on track to achieve the targeted growth. Despite the unprecedented headwinds due to geopolitical uncertainties, rising commodity and logistics costs, JKIL has delivered a noteworthy performance on various fronts, including record revenue, order inflows, notable decline in gross debt and improved profitability. We were able to garner new orders worth INR 3,685 crores in FY '22. We believe the order award will intensify further in FY '23. Our robust execution capabilities coupled with strong response repository of asset base, enabling efficient execution reflected in strong revenue growth. Our healthy order book of INR 11,926 crores ensures substantial growth momentum.
The current financial year, that is FY 2023 has also started on a positive note. We have been able to garner projects from IRCON amounting to INR 1,068 crores, excluding GST. Other key updates. 3 prestigious projects of national importance was inaugurated in the month of April 2022, which includes Metro Line 2A, which is from Dahisar to DN Nagar on the west side, wherein there are 17 proposed stations, 9 stations are operational between Dahisar to Dahanukar Wadi, which has been entirely constructed by JKIL. Metro Line 7A, which is again Dahisar East to Andheri East, which is on the eastern side that is on the Western Express highway, which comprises of 13 proposed stations along will be elevated viaduct, out of which 9 stations have been put to operations, wherein 5 stations, including the viaduct has been constructed by JKIL and are operation between Aarey to Dahisar.
JNPT and 12 projects that we have inaugurated is JNPT port connectivity between Amra Marg starting from NMMC headquarters that is Navi Mumbai municipal headquarters between building to Gavan Fata, Jasai to Karal and Karal to D-Point Panvel and Kalamboli, which is a 35-kilometer stretch at operational for public on 3rd of April by the Honorable Minister of National Highway. The tunneling work of Mumbai Metro Line 3, that is package 5 and 6 from Dharavi to International airport is also completed.
The Board of Directors have recommended a dividend of 60%, that is INR 3 per equity share on the face value of INR 5 per equity share, subject to approval of shareholders in the AGM. Stand-alone performance highlights for Q4 FY '22. Revenue from operations for Q4 FY '22 grew by 12% to INR 1,114 crores as compared to INR 992 crores in Q4 FY '21. EBITDA for Q4 FY '22 stood at INR 159 crores as compared to INR 104 crores in Q4 FY '21. EBITDA margin for Q4 FY '22 stood at 14.3% as compared to 10.5% in Q4 FY '21. PBT for Q4 FY '22 grew by 133% to INR 103 crore as compared to INR 44 crores in Q4 FY '21. EBITDA margin for Q4 FY '22 stood at 9.3% as compared to 4.5% in Q4 FY '21. PAT for the quarter 4 of FY '22 grew by 126% to INR 76 crores as compared to INR 33 crores in Q4 FY '21. PAT margin for Q4 FY '22 stood at 6.6% as compared to 3.3% in Q4 FY '21.
Stand-alone performance highlights for the FY '22. Revenue from operations for FY '22 grew by 37% to INR 3,527 crores as compared to INR 2,571 crore in FY '21. EBITDA for FY '22 stood at INR 505 crores as compared to INR 311 crores in FY '21. EBITDA margin for FY '22 stood at 14.3% as compared to 12.1% in FY '21. PBT for FY '22 grew by 219% to INR 283 crores as compared to INR 89 crores in financial year '21. PBT margin for financial year '22 stood at 8% as compared to 3.4% in FY '21. Tax for FY '22 grew by 222% to INR 206 crores as compared to INR 64 crores in FY '21. PAT margin for FY '22 stood at 5.8% as compared to 2.5% in FY '21.
The company continues its focus on working capital management and quality of order book. The company has been able to reduce its debt levels substantially despite challenging external environments. We remain optimistic on India recovery amidst the continuing global geopolitical uncertainty.
Before taking the Q&A, I would like to reiterate the vision of the company. Our target is to achieve a revenue of INR 5,000 crores by FY '25. Although we have comfortable debt position, our endure is to reduce gross debt everywhere with the best possible efforts. Objective is to continuously improve stakeholders' return ratio, ROE and ROCE by investing in people, technological processes.
With this, I rest my point. Thank you.
[Operator Instructions] Our first question is from the line of Shravan Shah with Dolat Capital.
First of all, congratulations to the entire team for robust performance for the quarter and for the year. Sir, my first question is, are we now upgrading our revenue guidance for FY '23 because last time you said 12% to 15%. But as I see, I think we can easily do 20%, 25% growth this year and the number you are looking at INR 5,000 crores revenue. I think one year before, we can achieve by FY '25 we're targeting, I think FY '24 we can achieve. So just wanted your update on this.
Well, Shravan, as you see that the company has achieved a top line of INR 3527 crore, which is a quite robust top line growth that the company has shown. Our endure is to try and do the best possible and we expect that around 12% to 15% is always what we are expecting to grow at. And further, we took our best efforts and try to achieve as fast as possible to maximum revenue, but our main focus always is ensuring the bottom line, which is very, very important for the company.
More than top line, bottom lines are always very, very important for the company. So growing top line without bottom line is never our focus. So we are very particular in selecting our projects which gives us proper margins and that's how we have been able to, I think, among the peers, we stand at a very good position in terms of even the debt equity ratio. And you know that we have reduced the debt by INR 100 crore. So I think selecting the right project is most important. So for the health of the company, and that is really our focus. Nevertheless, we will try our best to achieve the highest top line.
I understand and completely agree with you in terms of growing the bottom line along with the top line. But still just doing a rough calculation. So we have INR 11,900 crores order book. So even if we do at least 2.5, 3 years would be the execution period, so 35 to 38 kind of percent even if we do then also it is 20%, 25% comes the growth for this year. So just trying to understand what stops us to increase the revenue guidance?
Well, Shravan, I would again like to highlight that the organization via J. Kumar, we are a specialized company working into urban infrastructure. When you are working in urban infra, there are a lot of limitations in terms of land acquisitions, there are issues with regards to utilities. So even though the projects are reaching for around 2.5 to 3 years gestation period, but actually, when looking at the urban infra limitations where there are so much of [ PAP ] to be handled, utilities to be handled, which is not even known to the department themselves. So looking at it, the actual execution of the project spills over to 3-plus years.
So if you look at the growth, targeting around 12% to 15% could be a realistic picture and we believe that what we speak, we do better than that. So we would not like to give a very unrealistic theme. And when you are working in an urban infra, there are limitations in terms of execution, but at the same time, the margins are better. So that's how we would like to explain the point.
Okay. And second sir, we have already got INR 1,068 crores order inflow. So now for the full year, how much more we're targeting and in terms of the EBITDA margin. So previously, we said 14%, 15%. So is there any change or are we trying to have a slightly achieve the upper end that is 15% kind of EBITDA margin?
So well, if you look at that, we are targeting close to around INR 5,000 crores for FY '23, out of which are close to around 20% has already been achieved in the quarter one. And looking at the strong pipeline of the order book, which is close to around INR 20,000 crores, we expect even with the 25% strike rate, we shall be comfortable to achieve the top line of INR 5,000 crores. And EBITDA margin, we will surely be maintaining of 14 to 15 that we have been -- which is the main focus of the organization. And we are sure to maintain it because we like to go at this close space, but we back the orders at our margins.
Even if you look at the situation of FY '22, the order book that came in from Q4 was more than 55% to 60%. So we always want to select the projects which are right for the company, which are giving proper bottom lines to the company. That is the main focus of booking in order book. And looking at the ample amount of works that the government is focusing on infra projects, I think bagging the order of INR 5,000 crores should not be issue and at our margins of 14% to 15%.
Okay. And in terms of the CapEx number, how much do you want to spend this year?
So close to around INR 100 crores to INR 215 crores is what we are expecting in terms of CapEx. Last year, we had done around INR 115 crores. And current year also, we expect close to around INR 100 crores of CapEx to happen.
Okay. And in terms of the -- you already mentioned in terms of the -- will try to reduce the debt and the working capital. So working capital, so currently 70-odd days. So can we see a further improvement in the working capital days?
So working capital as on today is 120 days, which I think is a realistic number. Of course, we put our best efforts to see how we can bring it down. But as of today, it is 120 days and we shall not be going over it is what we expect. And with regards to your second point was [indiscernible]
So debt, if you look at net level, we are already negative in terms of net debt terms -- to the tune of around INR 78 crores. And at gross level, we are at 0.21. So I think already this company, we are almost a debt-free company. And though we will of course keep on trying and our best efforts to even further lower it, but most important to be understood is that even with the growth of around 37% in top line, the debt has decreased. We haven't increased it. So that shows the financial discipline of the organization at J. Kumar and we'll put our best efforts going forward as well.
And lastly, sir, I need a number for mobilization advance, retention money and unbilled revenue as on March.
Give me a moment, please.
So INR 76 crores is FDR. Security retention money is INR 212 crores and patient bank balance is near about INR 133 crores.
Sir, what was the mobilization advance?
INR 550 crores in mobilization advance.
INR 546 crores?
Yes, it is unbilled revenue.
Yes, INR 546 crores. And retention, you said INR 212 crores.
Right.
Okay. And then anything, sir, you said that the INR 20,000 crore opportunity in terms of the bid pipeline, anything which you want to highlight because last time we said in terms of the Chennai, some projects likely to be awarded by this June. So any update or have we bid and where we are expecting results to come.
So firstly, we are in process of bidding for metro projects all over the country, close to around -- I will give you on one other case, metro would be around INR 6,000 crores that we are targeting. STPs and water projects of around INR 3,000 crores, flyovers and bridge of around INR 5,000 crores to INR 6,000 crores. Buildings and hospitals to be, again INR 5,000, INR 5,500 crores. Again, we have also submitted an RFP for 2 projects of INR 2,000 crores each, INR 36,000 crores for GMLR, which is for Bombay Municipal Corporation and we expect the financial bids to be submitted very soon in the first half and we expect some orders to come in from that sector as well and metro projects have been going on all around the city, all around the country, I would say.
And we would see that around 55% to 60% of order book and revenue comes in from metro sector, where the government is focusing in a very good way because looking at the tourism attraction or the growth of the country, urban infrastructure is the most important factor to be focused and the government is looking into it, which can be seen from the robust budget for infra sector. So we are very confident that we should be able to back this order.
Yes. Sir, this INR 3,000 crore BMC's 2 projects, this is for which -- what's the scope of the project?
It is a tunneling project of 14-meter dia connecting Gurgaon on the east side of the Western Express highway to Mulund. So that is crossing along the JVLR, you can say. And this will be connectivity, which will be parallel to JVLR. It's a road tunnel that will be by TBM.
Our next question is from the line of Alok Deora from Motilal Oswal.
Congratulations on really good numbers. Sir, just wanted to understand, with this metal prices now coming down, what would be the -- how could the margins look like in near to medium term? What could the potential upside from the current levels?
So Alok, I would like to mention that as we have always been saying that the contract is covered by price realization and escalation clauses. So it works either ways. If there is an increase, it give us the cover for the higher side as well as if it is reduced, it takes care of the reduction. So it's not going to affect the margins inside plus or minus. So I would say we will be able to maintain the margins for sure. So it's basically a fair escalation clause, which takes care of the actual increase and decrease in prices. So it won't affect the bottom line.
Sure. Got it. And also sir, there are a lot of projects coming from the NHAI side and the competition is also expected to reduce now. So are we looking at those projects because currently from very small portion we have been primarily focused on the metro side. So since you also have a very different experience in the road side. So any focus there on the NHAI orders going forward?
So if you look at this INR 1,100 crore job, this is a job of NHAI only. And so our endure is to look at projects which gives us good margins and which has strong cash flows like the budget is well allocated to the projects. So NHAI has been -- we have been working since a good couple of years into that sector, let it be JNPT, let it be Dwarka Expressway, we have been working continuously into an NHAI and the recent order book is also for the NHAI projects. So our focus will always be there to look into various sectors, not limited to metros or flyovers, though it will be our primary focus, but we are open to all sectors, including building works where we are doing a decent amount of work even there. And we have taken up river rejuvenation projects. We are looking at STPs. We are looking at water pipeline projects. So our focus will be open-minded, but primary focus would be for NH and metros.
Sure. And also, sir, our order book is nearly INR 12,000 crores now, which was at similar level what it was 2 years back. And now in terms of revenues, we will be growing pretty well nearly INR 5,000 crores maybe next year or so. So I just wanted to understand how many orders we are looking to take in this year? I mean, is there any thought process as to how much maximum we are looking to bag because if opportunities come by, we may even exceed our whatever internal target might be?
So see, I would say that we are comfortable from around INR 15,000 crores to INR 20,000 crores were projects also to be taken up with the present infrastructure of J. Kumar. And with the strong image of J. Kumar with terms of handling complex projects, technical expertise that the companies holds for more than 4 decades, I think ranking orders and handling from INR 15,000 crores to INR 20,000 crores should not be issued. But as mentioned that for us, being a financially disciplined organization that we try to maintain, we are looking at INR 5,000 crores projects for sure. And even if we get good opportunities and if we do INR 10,000 crores, we are open to it. But we don't want to be an early bird and bag orders without bottom line. So that's how we are targeting at a project, the comfortable order inflow of INR 5,000 crores.
Got it, sir. And so just also wanted to get your sense on the competitive intensity on the metro side because we hear that in road projects, we see, especially on the EPC side, there is a lot of competition. How is it, sir, in the metro side, if you could just indicate as to how is the intensity there in the metro projects?
So the intensity and competition is there in all the sectors. But if we talk about metro, it's a -- when you talk about elevated and underground metros, the ticket size has been substantially increasing over the years. And now the metros are coming up with a project size of INR 1,000 crores, INR 500 crores plus for that matter. So I think handling such type of big magnitude and complex projects, there are very few capable infra companies available in India who can take up such type of huge laborial as well as technically complex jobs. So although there is a competition, but the amount of work available in the market is so huge that there are some local players who likes to work only in particular vicinities. But for us at J. Kumar, we have been working pan-India and with Maharashtra, Gujarat, Delhi as being our main focus. And also recently, we have been trying to bid for projects in Chennai. So I think competition is there, but it is a sensible competition, I would say. So that's the difference between rural and metro sectors and flyovers, I would say.
Got it. Sir, just last question. Out of the order book which we have currently, how many projects would be maybe a little slow moving or -- and how many have not started. Basically, how much is currently under execution? Just wanted to know that.
I would say that other than the projects that we have recently backed in Q4, that is March to the tune of around INR 2,200 crores, INR 2,500 crores to INR 3,000 crores projects, which has been recently backed are under slow moving for that matter, if you speak because it is the initial stage of the project and the preliminary works at the initial 6 to 8 months is the point. So I should not actually really call it as a slow moving, but in terms of revenue, we can see the inflows coming in, in FY '23, in the current year.
Our next question is from the line of Mohit Kumar from DAM Capital.
Congratulations on good set a number, especially for the fiscal year FY '22. I think you have met all the guidance which you gave in the beginning of the year. Sir, my first question, can you just confirm the revenue guidance and EBITDA margin. Is it 12% to 15% growth over FY '22 and 14% margin for -- 14% margin, is that fair assumption?
Yes. So 14% to 15% EBITDA margin around 20% to 15% growth is, I would say, a very achievable target for J. Kumar and we have been maintaining it for these many years, and we are confident that we'll be able to achieve it.
What was the impact of the input inflation in the Q4 FY '22, if you can? Was there any price variation, which could not be completely passed through and there was a hit. But since we have better revenue, we have been able to cover it. And my question is if there was no input inflation, what could have been the margin?
So means inflation, as we have said that the price variation and escalation clause takes care of it in a fair manner. And even when the prices increase, it will not impact, now going down also it's not going to affect the bottom line of the company. Material was if you talk of it depends upon the nature of work where like the material component, if you look at it keeps varying from 63% to 65%. And when we work, it totally depends this percentage depends on 2 factors. That is at what stage of the project, at what stage we project is? And second is, what is the nature of work. If the work is more of mechanical means, the material component would be reduced. And if it is more of material component then, we will see an upside. On a year-on-year basis, if you look at it, 63% to 65% is a fair number to be targeted.
Sir, on the order pipeline, what are the orders apart from GMLR, which is available in the Mumbai region, Maharashtra?
So that RFQs has already been submitted by the qualified bidders. And now it is under evaluation stage with the BMC. And we expect that very soon, we should be able to get the result of the RFQ submitted by the bidders. And eventually, in this financial year, this work should be put into operation.
Sir, apart from GMLR, which are the other large projects which are there for the fiscal, which you are targeting?
So there are macro projects in Surat in Chennai, in Ahmedabad coming up, again, Delhi's coming up with other metro projects. Mumbai is coming up to projects of Mumbai Metro Line 10, 11, 12 and 13. So I think metro projects has been there as widely with open range, even Kanpur and Agra, they have been coming up with new projects. So metros and flyovers and NH road are amply available all across the country and we have been focusing mainly into Northwest region and into the South area also like Chennai, more prominently that's been our focus that we open-up our regional office in Chennai as well.
Are you targeting any more subcontracting like, say, from IRCON, which you won this quarter? Are you targeting more projects like that? Is there a sufficient large opportunity available?
So if you look at this project of IRCON, I don't know whether you should really call it as a subcontract because the job that was being called by NH, was our PPP model and J. Kumar was interested more into EPC as we always say. So this is IRCON being a government undertaking, we have taken the job from them on an EPC mode and the earliest bid called by NH was on PPP mode. So that's the difference. So I would not really, really call it as a subcontract. And our main focus always, as you have been seeing with the entire order book of INR 12,000 crores, it's always been from the government directly as a main contractor. And this also here will be as a main contractor and not subcontractor basically. I would call IRCON as the developer and we as the EPC contractor.
And do we have a similar contract at NHAI with the IRCON? So price direction clauses is also present in IRCON, right?
This is part of this IRCON contract as well.
Our next question is from the line of Jiten Rushi from Axis Capital.
Sir, my first question is on the execution, so order book…
Can you be a little louder, Jiten.
Okay. So my question is on the execution in FY '23. So which project we are likely to close in FY '23 because we can see metro projects achieve completion this year, many of the metro projects. Any targeted revenue breakup from metro [indiscernible] roads, buildings, so can you just breakup and which bigger projects are likely to complete this year?
I would say that we expect a top line of around 55% from metro and balance 45% from other works. And in terms of completion, like last year, we have last year or early Q1, we can see we have completed line 2 and 7 Phase I and the Phase II of line 2 and 7 will also be completed in this H1 as well as we expect the Pune elevated corridor that we have been constructing, that's also been completed from our side. And by H1, we will hand over the Pune elevated project also to the department. So these projects we see in terms of completion. And with regards to revenue, when giving the project-wise would be a little difficult at this stage. But yes, around 55% would be from metro and 45% from roads, bridges and other sectors.
Sir, Just Line 3 of underground metro, do we expect this to complete because I can see almost INR 1,000 crores of order backlog still outstanding. And we recently saw an article where it was mentioned that work is getting extended or delayed to December '24. So you are targeting around this year-end. So are we on track or a delay?
So what you have been reading in the article is basically with regards to operation of the Metro project and not execution of the underground metro projects that's been backed by J. Kumar. So our projects are well within the limits and the projects are going on well in time and we have completed projects to the tune of around 75% to 80%. And the balance work will also be completed within the targeted time. It's basically regarding the depot work that we have been mentioning because till now, it has not been very clear as to where this depot is going to be constructed. So irrespective of the depot work, the work assigned to J. Kumar in terms of top line and bottom line is well secured because that is irrespective of the depot position, our works will be completed.
Okay. So we will be 100% complete and we'll get our money from this. There is no issue.
Yes. So being a cash contract, we are not connected to the operation of the line. Construction work whatever has been assigned to us is important unlike a PTP or BOD project. So that's the best part of it, and that's why J. Kumar always focuses on to EPC projects.
Right. Sir, one last thing on the highway projects. So I mean we are obviously focusing on the asset line business. Are we looking for any hand projects or kind of back to back subcontracting for hand project as you said, we did were doing something for IRCON. So any tie-up with them for the future back-to-back sub-contracting hand projects are waiting for such projects?
So hand, we had tried for it, we had bid on project also, which we found to be lucrative. But we could not bag it because for us, execution, I believe, is the biggest strength and we would like to focus on to our EPC mode itself. And though we keep trying for different options, if we feel that it can give us a different vertical, but surely at our margins and at our terms and conditions, if we are comfortable, we try for it. But it's very unlikely that we'll go for any beauty or hand projects.
Sir, on the margin front, I mean, I understand you've given a guidance of 14% based on the currency commodity situation. Sir, what you have won any products in the last 3 to 6 months? Probably we shall be starting the execution in Q2, end of Q3. So do you see better margins from these projects as against older projects, order backlog, which are under execution right now, which can give you, say, 12% margin because of the commodity price and while the newer projects in the last 3 to 6 months or it can give you 16% and while your blended margin is 14%. But going forward, if you are able to win new projects, do you see in FY '23 second half and FY'24 onwards, our margin run rates are spiking up to 14% to 16%, which we have seen in the past also. Any thoughts or any light on this, sir?
Well, Jiten, I would say that it's not a printed percentage that it would be the same. But I always believe that there are projects which we see lower margins, some projects as you rightly said, which we see 17%, 18% margin as well. But at the same time, if you talk at on a year-on-year basis at an average margin, 14% to 15% is a decent margin, I would say, which can be achieved. And though our endure always we mentioned, that we try to do the best in terms of cost cutting in terms of management of idling, but we need to always remember that working in urban infra, which gives you a very specific margin of such good numbers that we maintain also attracts problems with respect to delayed cost overruns. So looking at the increase and decrease on an average level, maintaining this margin, I think, is a decent margin to be there I feel.
We appreciate the margins are really good. I was just taking an insight because now we are doing some STP work also and able to do some different geography or different feedback can have an impact on the margin. But overall, 14%, 15%, I understand we can easily maintain based on the existing order backlog, sir.
With the orders of existing order books that we have backed off around INR 12,000 crores, I would say that we'll be able to maintain the margins. And of course, a little bit some basis point plus or minus is always there. But I don't see any substantial increase in the margin, to be honest.
Mr. Rushi, sorry to interrupt. You have more questions please join the queue. Our next question is from the line of Parvez Akhtar Qazi from Edelweiss Securities.
Sir, 2 questions from my side. First, if you could let us know about the update of some of our major projects like the coastal road in the [indiscernible] that we are doing the Dwarka Expressway and Surat Metro project.
So with respect to the coastal road project, it is recently bagged and the preliminary works are ongoing, but we should surely see revenue coming in FY '23 for the project. Mithi tunnel, we have already started the work and we have received payments worth around top line close to INR 30 crores to INR 40 crores. So the work is well in swing and the TVM assembly is already going on. The shaft is nearly completed. So we should be starting with the lowering of PBM in the month of June or July.
And about the Surat Metro and Dwarka Express.
So Dwarka Expressway, you can see that there is a good revenue that has been received from what you call Dwarka Expressway to the tune of close to around INR 800 crores in FY '22. So the work is in full swing in line with the timelines. So I don't see any issues with regards to the Dwarka Expressway, it is in full swing. And which was the other one you were asking. So Surat Metro also, we have received payments.
The work has recently started because there were some land inflation issues and change in alignments by local authorities there. But now we have already mobilized in proper way and work is proper swing. And in this financial year itself, we expect to lower the TBM into the shaft. The TBMs have already been refurbished at Surat and some minor works are pending. So the launching shop should be ready somewhere around December or Jan. So in this financial year, we should be able to do the tunnel machines as well there. We have already started casting of tunnel segments also in Surat. And the station we are already in proper line and there are 3 machines, which are already operational for that job.
Sure. And one bookkeeping question for Arvind. What is the total cash and bank balance and FDR?
FDR is INR 376 crores and cash and bank balance about INR 133 crores.
FDR, you said is INR 376 crores.
INR 376 crores is FDR.
Okay. And cash and bank balance is INR 130 crores.
Yes.
Our next question is from the line of [ Manjul Agarwal ] from Green Portfolio.
Sir, I wanted to ask that there have been very frequent changes in KMP in the last 2 years, like there have been resignation of 2 independent directors as well as the CFO. Would you like to comment on that?
Yes. So Manjul, basically, our earlier appointed -- firstly, I would like to emphasize on the point that Arvind Gupta who was the CFO. He has not been -- he has not left the company, he is very much with the organization. But looking at the growth of the company and diversified order books as well as the better governments that we wanted. We have given in a separate portfolio with regards to taxation, and additional person, Mr. Bhandari had joined, but due to some personal issues that he had with his previous company, he was not able to be regular into the office. So that's how as it was the initial period, we thought it more better to appoint a new CFO and a competent person as a replacement without being waiting for his earlier commitments.
So that's how reshuffling is there, and Arvind is already there in the company. And with regards to Director when you talk of Mr. Srinivasan, so looking at his age because has become substantially older in age. So looking at his health conditions, we brought Mr. Kapoor who is a well competent person and having a quite large experience into the infra sector as well because he has been working in GVK as well into airport sectors and been to GMR. So looking at that aspect, we thought it to be a better deal to take a more younger concern as compared to Mr. Srinivasan. So I think that was a good move, I think, well thought process, which we have taken the decision.
All right. Sir, my next question is regarding capital WIP. It has remained almost same at INR 150 crores. So is there a project stack. Can we expect to capitalize this?
Yes, of course, we'll be capitalizing in the current year and J. Kumar House itself will get capitalized in the current year as [indiscernible] current year.
Okay. Sir, apart from this, receivables have grown by more than 40%. Can we have some information on that, the quality and the age of debtors.
Yes. So basically, it was in for March month, the billing always is stronger in Q4, which is the highest revenue that comes in Q4. And out of this, a substantial amount has already been received by the company in April and May. So that's the simple reason which was there. And there is no any slow moving or any doubtful inflow into that.
[Operator Instructions] Our next question is from the line of Parikshit Kandpal with HDFC Securities.
Congratulations on a very great year and really good improvement in the balance sheet health and reduction in debt. So my first question is on the Mumbai Metro project. So what is the pipeline right now in the upcoming -- is there any upcoming packages, any new metro projects being planned for MMR?
So in MMR, there are Metro Line 10, 11, 12 and 13, 4 metro lines that are well into pipeline. And I think mainly the first project that should hit the inflow should be Metro Line 10, which is connecting Metro Line 4 and Metro Line 9. That is from Thane to Gaimukh, which is on the Thane Ghodbunder Road to [indiscernible]. So this line, which is costing close to around INR 1,200 crores to INR 1,500 crores should be coming up very soon because the GC has also been -- the tender for GC has also been opened. So this client I see very fast to come up in MMR. And also the other projects that is extension of Metro Line 5 and 11 and 12, which will still repetitive, that line is also under the planning stage into tending stage.
Okay. My question is more because the things like large projects like coastal roads, [indiscernible], larger metro projects, flyovers, lot of red lights. So I think GMLR is left to be awarded, rest all the major projects have been awarded. So from your bidding perspective, from MMR, which is like 70% to 80% of the order book. So how do we factor in the order inflows pipeline? Because otherwise, you need to diversify beyond MMR into other geographies, ramp-up Delhi or UP or Gujarat or Chennai. So someone has to like for making that balance reduction in order inflows likely to happen from MMR. So how do you need to balance it. I just wanted to understand that.
So Parikshit, as you are aware that J. Kumar, we have not been a Maharashtra-focused company. It's basically focused on the projects that we believe to be good for the organization. So if you look at till 2010, we were mainly focused into Maharashtra. But in the past 12 years, we have become a Pan-India company and Delhi, Gujarat, Rajasthan, UP, these areas have also been sort of band has been becoming more broader. And like recently, we bagged the order from Delhi Metro for INR 600 crores. So our focus is always there on a Pan-India basis, looking at projects where we feel that projects are good with terms of cash flow, with terms of margins. So that's the only focus that we go for. And right now also, there are projects of Delhi Sena Bhawan, the Sahara Medical College, Sahara Training School, Pune Administrative Building, hospitals in Gurgaon by BMC with regards to -- this is totaling to around INR 5,000 crores worth of projects in building line, whether you talk of expressway from [indiscernible], that is flyover and road, coastal road from [indiscernible], which is a INR 1,500 crore job. That's on EPC mode that's coming up and the tendering work is in process, the NIT has already been published.
There is a core leaning of bridge in Raigad, there is Nariman point to Seabridge has been proposed of around INR 300 crores. There are bridges in Mumbai, close to around INR 1,700 crores that's coming up. There is Chennai underground metro projects totaling around INR 6,000 crores. There are 6 packages altogether, where our -- where the training process is on. There is a sea-bridge tunnel project close to around INR 500 crores that we have recently submitted and we are very likely that we should be able to hit the project looking at the complex nature of work and the expertise of J. Kumar. And again, there are some power-houses and water and STP projects in Uttarakhand as well that we have been targeting. So INR 20,000 crores worth of projects as of now before -- which is at the early stage of FY '23, we are talking of. So even if 20%, 25% strike rate, we should be able to back the order book that we target for.
Great. The second question is the guidance which you have given like INR 5,000 crores revenue guidance in midterm. So for achieving that, we need to substantially ramp up our order inflows. So at least we need to do that INR 8,000 crore to INR 10,000 crores of enclosed at least from 2 years from here. So are we well pleased to get those kind of inflows? I mean, in terms of building up skills, expertise, competencies, geographical diversification because at INR 5,000 crore -- for having INR 15,000 crores we should at least have INR 15,000 crores to INR 18,000 of order backlog. So that would require at this INR 8,000 cores to INR 10,000 crores of inflows.
Well, Parikshit, I will take your point, and I appreciate what you saying is fairly right. So -- and we are well prepared, as we said, that we like to give a number, which is like more on the safer side. But yes, we are open to bagging more than close to INR 10,000 crores also. And like our organization to handle projects was around INR 15,000 crores to INR 20,000 crores, we are well geared up. And with the reputation of the company, the technical skills, the wonderful team at J. Kumar that we have and the ownership attitude at J. Kumar, there are like -- I think bagging and executing such projects wouldn't be an issue. But as we always say that margins, which is our main focus, like you become too big, but you lose your bottom line, that we don't want to happen. So that's how we like to be very selective, though we may be little sounding a little low or pessimistic. But our focus in terms of margin is always the primary area. So that's how we have been giving guidance close to around INR 5,000 crores. But we are open to bag orders from INR 8,000 crore to INR 10,000 crores without any discomfort with a strong balance sheet, of course, of J. Kumar that you can see.
Right, right. So just on building segment, now it is 8% of the order book. So first of all, how much inflows we had in building segment in FY '22? And how are we looking to make this segment bigger and meaningful to the overall execution in order book because your revenue contribution is hardly 5% from this segment. So if you can -- I know you spoke about INR 5,000 crores of building prospects, but as the previous [ system ] intensity of ramping up this vertical, which has a huge potential and there is a huge shortage of contractors with the EPC building segment. So if you can just touch up on this segment and elaborate on a stand-alone basis, how much are we qualified to bid for government projects on the building side and potentially how much of order inflows and going ahead, what could be the potential contribution of this segment, can it become like 20%, 18% to 20% of the order book the next few years?
So Parikshit, with regards to potential, I have already mentioned to you that up to INR 20,000 crores, around INR 5,000 crores of building projects, we have already mentioned that. And we at J. Kumar, we have been qualified with a single certificate of close to INR 1,000 crores plus certificate that has come up -- that has come up through Alwar. And recently, we have been doing work of building works at Lucknow as well. So building works -- we have a substantially good certificate where we can take up these types of jobs. But building we look for an opportunity of the right work, at the right place and at margins that we need. So building has been a focus, and that's how from the last couple of years, we have started looking into building works as well, and we'll continue to do that. And we'll try the best to explore this opportunity to be best as possible where the company is [competitive native].
Okay. Sir, just last thing, if Arvind or Mr. Biyani can answer, is or you can answer. So if there has been any big inflows on the mobilization advance towards the end of March because the current liabilities is to be little on a higher side. So is there any one-off there like the big chunk coming in the fourth quarter?
As of March 31st, we have a total mobilization advance of INR 547 crores. And we expect further INR 300 crores to receive for the newer projects later on. And in the quarter of March -- the Q4 March, we had received INR 59 crores from [Suraj] metro as mobilization advance.
So what was this number in December '21, the mobilization advance in December '21, the closing balance?
December '21 -- just give me a second.
Okay, maybe you can answer it later. No problem sir. Thank you, sir, and wish you all the best.
It was [ INR 550 ] crores as on March 21st.
How much, sir?
December, it was almost same. As of March 21, it was INR 450 crores, which was one year before. December, it was almost same. We will share the numbers with you later on.
[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
I would like to thank once again to all of you for joining us on this call today. We hope we have been able to answer your query. Please be free to reach out to our CFO or IR team for any clarifications or feedback. Thank you and assure you of our best results at all times.
On behalf of Anand Rathi Share and Stock Brokers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.