KNR Constructions Ltd
NSE:KNRCON
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
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 |
238.4
409.6
|
| 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.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
KNR Constructions Ltd
Earnings Call Analysis
Q2-2024 Analysis
KNR Constructions Ltd
The company successfully achieved financial closure on three new HAM projects with a bid cost of INR 2,530 crores, setting a confident tone for infrastructural investments. It cited the CRISIL report, indicating a promising roadmap with the government's plan to double infrastructure spending, from 2024 to 2030, reaching INR 143 lakh crores. Expectedly, the focus is on highway constructions with an increased target of 13,800 kilometers for FY '24, marking a substantial increase from the previous year's 10,331 kilometers. However, certain operational delays have been noted, including shifts in project timelines and unforeseen postponements, suggesting potential complicating factors at play.
Physical progress across various HAM projects is reported, with figures ranging from 30% to 97%, highlighting ongoing infrastructure development. Investments currently tally up at INR 467 crores, with a planned infusion of additional equity required over the coming years to meet the project's financial needs.
India Ratings and Research upheld the company's credit rating of IND AA/Stable for long-term facilities and IND A1+ for short-term facilities, positioning the firm as creditworthy with a capacity to meet financial commitments in the long-term.
An optimistic target of INR 3,000 crores to INR 4,000 crores in order inflow has been set for the rest of FY '24. The addition of new projects is expected to bolster the order book to INR 7,453 crores in the near term, underscoring a strategic emphasis on diversification and growth across various construction domains such as highways, irrigation, and potentially railways and metro projects.
The company reported an 11% year-on-year revenue increase, reaching INR 941 crores for Q2 FY '24, which reflects a resilient operational performance despite some marginal declines in EBITDA and net profit compared to the prior year's corresponding quarter. The consolidated financial picture also conveyed growth with an 8% increase in revenue and a notable profit after tax improvement from INR 99 crores in Q2 FY '23 to INR 143 crores in Q2 FY '24. However, the debt level rose to INR 734 crores as of September 30, 2023, from INR 611 crores at the end of March '23, hinting at incremental leverage to fuel the company's strategic endeavors.
You don't have any saved screeners yet
ladies and gentlemen, good day, and welcome to KNR Constructions Limited Q2 FY '24 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. S. Vaikuntanathan, VP, Finance, KNR Constructions Limited. Thank you, and over to you, sir.
Yes. Good afternoon and wish you -- wishing everyone present on the call a very happy Diwali and a prosperous New Year. Thank you for joining us today on the call to discuss the financial results of Q2 FY '24. Along with me, I have Mr. K. Jalandhar Reddy, Executive Director; K. Venkatram, General Manager Finance and Accounts and Strategic Growth Advisers, our Investor relations Advisors. We uploaded the results and investor presentation on the stock exchanges as well as on our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events, post which we will have a question-and-answer session. .
During the quarter, we have achieved financial closure of 3 of our new NHAI HAM projects, with a total bid cost of INR [ 2,530 ] crores. That is #1 for Mysore to Kushalnagara HAM project, Package IV of NHAI [indiscernible] 27th September as date of financial closure; the Package IV, 21st September 2023 has been declared as financial closure date by NHAI. For Marripudi to Somvarappadu HAM project, NHAI has declared 21 September 2023 as financial closure date. Further, post closure of the quarter on 12th October 2023, NHAI has issued a Provisional Certificate of Completion for our Magadi-Somwarpet HAM project, which is executed by our [ SPV ] KNR Somwarpet Project Infra Private Limited, declaring 27th June 2023 as PCOD day. The project has achieved PCOD 3 days ahead of the revised schedule of completion date.
I would now like to share our perspectives on significant industry developments. According to the CRISIL Infrastructure Yearbook 2023, India's infra sector spending is projected to double to INR 143 lakh crores between 2024 and 2030 compared to amount spent from 2017 to 2023. This signifies the government's strong determination to enhance the nation's infrastructure and support economic growth through substantial investments.
In line of its estimate, in FY '24, the target for highway construction has been increased to 13,800 kilometers compared to 10,331 kilometers constructed in the FY '23. However, active monsoon and ongoing challenges in timely obtaining vacant right of way, that is ROW, has caused a significant decline in highway construction during month of September with only [ 371 route ] kilometers being completed. NHAI has ambitious plans -- over the next 3 years, the NHAI aims to construct an average of 4,500 kilometers of new highways annually. These projects will be monetized through a combination of InvIT and the TOT model. And this approach enables NHAI attracting private sector participation and expertise.
Industry sources indicate that the government plans to expedite the monetization of operational highways in the upcoming years, aiming to raise approximately INR 2 trillion funds. By leveraging the value of existing highway assets, the government aims to unlock capital for further infrastructure development, ensuring a sustained investment [indiscernible] NHAI is expected to play a crucial part in achieving the target awarding new projects worth over INR 1.5 lakh crores before the end of current financial year.
Notably, NHAI has already taken a proactive steps by quoting our bids for projects worth INR 90,000 crores. Contrary to the estimates stated earlier, there is a slowdown in awarding activities, an ambitious target of 12,500 kilometers of new highways is set for FY '24 by MoRTH, NHAI and NHIDCL. NHAI is [indiscernible] for bidding half of the set target. This raises concern about meeting the set targets and calls for a closer examination of the factors contributing to the subdued activity. [indiscernible] will be closely monitoring the distribution and looking for strategies to revitalize the awarding process to ensure the timely development of our highway for success. There is a shift in project time lines for bidding EPC and HAM projects. The bidding is delayed and pushed to second half of the fiscal year. In the further development, not only have many new highway projects have been shifted from first half to second half of FY '24. But even the bid new dates of several projects originally set for October 2023 have been postponed to November and beyond. This delayed bid due dates raises concern about the overall time line for the project execution and completion. It suggests that there may be additional factors in play further complicating the awarding and initiation of these projects.
The industry recognizes the significance of timely resolution of land acquisition challenges as it plays a pivotal role in expediting project execution. By addressing these issues promptly, the government can create a favorable environment for the bidding process and subsequent construction activities. Industry experts remain optimistic that the government authorities will strictly resolve land acquisition and other pertinent issues, thereby making [indiscernible] available for bidding and construction of proposed new projects. This proactive approach is crucial to achieving the ambitious heavy awarding target of 12,500 kilometers before the end of the fiscal year.
According to the [ ICRA ], the anticipated moderation in toll collection growth for FY '24, ranging from 6% to 9% primarily attributed to the softening of whole Price Index that is WPI. Looking ahead to FY '25, we expect the toll collection growth to maintain a steady pace of 6% to 8%. Now coming to the key updates for the company. The percentage of physical progress as of September 2023 for a HAM project is as follows:
Magadi –to Somwarpet at 78%; Oddanchatram to Madathukulam is 97%; Ramanattukara to Valanchery is 45%; Valanchery to Kappirikkad is 49%; Chittor to Thatchur is 30%. During the quarter, the execution was primarily driven by HAM projects. As of September 30, 2023, the company has already invested INR [ 467 ] crores, out of INR [ 992 ] crores [indiscernible] for all the HAM projects. The additional equity requirements of INR 575 crores should be infused, INR 95 crores -- ab INR 311 crores and [ INR 65 crores and INR 64 crores ] for financial year 2024, financial year 2025, financial year 2026, and financial year 2027, respectively.
You can refer to the Slide #27 of the investor presentation for details on each HAM projects. The toll correction for bigger projects is Muzaffarpur to Barauni in Q2 FY '24 is INR 9.43 crores. And for H1 FY '24 is INR 21.12 crores. As mentioned earlier, we have received financial closure for KNR Ramatheertham Infra Private Limited, KNR Sriranganatha Infra Private Limited, and KNR Kaveri Infra Private Limited. We expect the appointed day for this to be received during Q4 of FY '24.
India Ratings and Research has maintained its outlook on KNR Constructions, the rating of IND AA/Stable for long-term bank facilities and IND A1+ for short-term bank facilities. This rating indicates a stable outlook for KNR credit worthiness in the long run reflecting strong ability to meet its financial obligations.
Now coming to the order book position. As of September 30, 2023, the company has an outstanding order book position of INR 5,673.2 crores. It's comprises of EPC road projects and HAM projects, which is around 72% of the total order book, while irrigation projects comprised of -- remaining 28%. When broken down by the clients, [ 55% ] order is from third-party clients and balance order is from captive HAM projects. The third party order book on our noncaptive order book accounts for around 55% of the total order book positons. The percentage is skewed between State Government contracts at 41% and 12% from Central Government and balance 2% book is from other private players.
With the addition of 3 new HAM projects, the order book position will be INR 7,453 crores, which comprises of 79% from RoW project and rest 21% from irrigation. The current orderable book position remains healthy and provides a clear visibility of execution over the period of the next 2 years, under the Bharatmala projects, a robust project pipeline and completed DPR -- DPR project reports should expedite the project awarding activity in future. The company is targeting an order inflow of INR 3,000 crores to INR 4,000 crores for the balance of FY '24.
We have been actively pursuing diversification in our operations, recognizing its paramount importance in ensuring resilience and sustained growth. Diversification is not merely a strategic choice, it's a commitment to the future. Our company is resolutely engaged in seeking out lucrative opportunities in new geographies and unconventional project types such as canals, railways, irrigation and in other states and the metro development. The deliberate aims to not only navigate the present challenges -- but this deliberate aims to not only navigate the present challenges but also to position ourselves advantageously for the future. I will request K. Venkatram Rao, our GM to present the results for the quarter ended September 30, 2023, over to Mr. K. Venkatram Rao.
Let me take you through the Q2 FY '24 and H1 FY '23 stand-alone financial performance, followed by the consolidated highlights. Before devolving into number, I would like to highlight that Q2 FY '23 and H1 FY '23 includes receipt of the bonus from one of the HAM projects for an amount of INR 7.26 crores and share of revenue from 2 of its joint venture for an amount of INR 24.61 crores on account of sale of its arbitration claims. And therefore, the performance on a year-to-year basis is not comparable.
I will start with the quarterly highlights first. The revenue for the quarter grew by 11% year-on-year to INR 941 crores. EBITDA for Q2 FY '24 was INR 166 crores as compared to INR 189 crores in Q2 FY '23. EBITDA margin in Q2 FY '24 stood at 17.7%. Net profit for the quarter was INR 99.9 crores as compared to INR 107.6 crores in Q2 FY 23.
Now coming to H1 FY '24 highlights. Revenue for H1 FY '24 grew by 8% year-on-year to INR 1,871 crores. EBITDA for H1 FY '24 was INR 339 crores as compared to INR 354 crores in FY '23. EBITDA margin in H1 FY '24 stood at 18.1%. Net profit for H1 FY '24 was INR 210.1 crores as compared to INR 208.4 crores in H1 FY '23. Now coming to consolidated financial performance, I will start with the quarterly highlights first. The company recorded an year-on-year growth of 8% in the total revenue to INR 1,038 crores in Q2 FY '24. EBITDA came in at INR 232 crores in Q1 -- Q2 FY '24 as compared to INR 263 crores in Q2 FY '23. EBITDA margin in the current quarter stood at 22.3%. Profit after tax stood at INR 143 crores in Q2 FY '24 vis-à-vis INR 99 crores in Q2 FY '23.
Moving on to H1 FY '24 highlights. The revenue for H1 FY '24 grew by 4% year-on-year to INR 2,019 cores; EBITDA for H1 FY '24 was INR 447 crores as compared to INR 475 crores in H1 FY '23. EBITDA margin in H1 FY '24 stood at 22.2%. Net profit for H1 FY '24 was INR 276 crores as compared to INR 189 crores in H1 FY '23. Now moving on to stand-alone balance sheet. The company continued to maintain a strong balance sheet.
The working capital days stood at 65 days compared to 62 days in June '23. The consolidated debt as of September 30, 2023 is INR [ 734 ] crores as compared to INR 611 crores as of March 31, '23. The debt-to-equity on consolidated basis as of September 30, '23 stands at [ 0.24x ] as compared to [ 0.22x ] at the end of March '23. With this, we can open the floor for question and answers. Over to you.
[Operator Instructions]
The first question is from the line of Shravan Shah from Dolat Capital.
Relatively better performance. So congratulations on that. Sir, now first important is on the order inflow. So till last quarter, we are looking at INR 4,000 crores to INR 5,000 crores. I understand there is a slowdown from the NHAI side. So 2, 3 aspects for us, is there any projects where we are L1; second, in INR 3,000 crores to INR 4,000 crores that additionally, we are looking at how much are we looking at from the NHAI? And is there any state projects, particularly MSRDC that we are looking at and also the new segments, whether it is on metro or any other. So that is one. And how much of the value of projects that we have already bidded and where the outcome is yet to come.
Actually, first, we'll you go with the [indiscernible] NHAI is completely getting postponed as we are well aware of the market. So we were targeting about, say, INR 4,000 crores plus this year to be honest. As you well -- you're well aware last quarter was [ entire ] rainy season. And actually, this month also November, [indiscernible], now I think we are getting clear with this, so we will hopefully do better in coming days. So that's all [ nature ], but would like to answer that ordering flow. See, we are sourcing all the orders which are coming from the railways. We have started [indiscernible] Engineering Limited. And a few of the projects with [ MCC ], we are participating in JV.
Just to make ourselves comfortable to bid on new section. So in Railways now, we are catching up a bit as well, we are planning in tunneling projects which are coming from North East part of India, even Himachal and all that places where lot of tunneling any projects have come up. So we are also focusing those, and we will now even look at mining project also, which we are under pipeline but we want to bid now. So we're making our arrangements. Discussions are going on with the JV partners also [indiscernible] certificates, which we need to reformat -- in a new format we have to take our certificate. So in some places, in the mining project, we are ourselves directly qualified. So we are trying all these trials. And even the railway bids are also -- have got postponed -- faced some postponements. So hopefully, there should be some value between January and February and March because after that, it's going to be election time. So I think before election time, they will call up much more tenders, and they will go for election for showing that these many projects we want to do and we are doing like that. to the political scenario, which we are trying to observe and as of now what we heard from the various departments. So at this time, [indiscernible] irrigation and not only for irrigation and highways, we are even focusing on several other projects like that. So for the time being, we were even participating in many other sectors.
Got it, sir. So just to further delve on that. So 2, 3 aspects, first, how many value of projects we have participated and where bid is yet to open and that is [ for aspects ] and second, let's assume projects.
4 projects in irrigation in Telangana and they are yet to open, 2 of them not opened, but I think one of them we are L1 -- 2 of them, we are L1, yes. Because of the political scenario, we don't know what is going to happen.
And as the company policy on receipt of [ LOI ] only, we will inform to start [indiscernible], so that's why we are not informed. But in 2 projects, we are L1 actually, from what the information we got from department.
Okay. So apart from these, so only 2 projects we are L1. And the rest, we are not. So apart from that, any other projects that we have bidded and yet the outcome has not come.
Not much.
Okay. Okay. And second, let's assume that INR 3,000 to INR 4,000 crores that we are looking to add this year in terms of the new orders. And I assume, let's say, we get INR 1,000 crores or INR 2,000 crores, are we -- in terms of how we will be compensating the same in the next year. So then the next year, are we confident that we will be able to get the much higher order inflow to compensate whatever the shortfall is there for this year?
Yes, it should be because NHAI has got a very big robust pipeline that is [ rare ] in NHAI also. So no doubt, initially, there should be a lot of aggression also we are expecting. But going forward, it would be a little bit -- things will be normalized in the second, third quarter of next year, second quarter, at least.
Okay. And then apart from NHAI, sir has mentioned that INR 90,000 crores bids is already there. And Reddy, sir, you have mentioned that you are looking at mining projects, tunneling projects, railway. So any broader value in terms of how much value of projects that are we planning to build by end of [ March ] apart from the road sector? .
In Andhra Pradesh, we had 3 projects. One is a [indiscernible] crores and another one is around INR [ 1,350 ] crores for [indiscernible] tunnels, right, railway project. And other ones which we are done in Orissa in about, let's say INR 1,100 cores OR it is INR 950 crores I'm not very sure about it. So that is from Railways. And there have been mining projects, about INR 12,000 crores in a tenure of 14 years -- 12 years. So those pockets are there. And apart from that, irrigation, so we are even looking at a lot of projects from various states like Maharashtra and Karnataka -- there are 2 to 3 bids only in Karnataka which we are focusing. And most of them, we are focusing from that front even from UP also, there are projects in Madhya Pradesh. .
Sir, this INR 12,000 crores mining projects that we will be bidding in JV, so 50-50 JV? And this is in which state, sir?
It is a mining project -- mining project is in that...
Jharkhand.
Jharkhand.
Sorry, sir, I couldn't hear.
Jharkhand, Jharkhand.
Jharkhand, so this will be in JV -- 50-50 JV?
Actually, that's what I said, we were trying to take the certificates in the format that they require. So we are successfully able to take the format in certificates. I think we are directly qualifying here. Otherwise, [indiscernible] and as a partner, we have already started, there is no doubt in that.
Sorry, sir, just to clarify, we will be bidding solely and not through the JV for mining projects.
Sir, actually...
management, sorry to interrupt you...
In which the wording, which they asked is they quote, say, transporting word they used. Obviously, we have to do the [indiscernible], we've done transporting. So same thing that certificate as they asked, we need to take it from the department. If we're unsuccessful in taking that, we will probably go with JV.
Yes. any 1 or 2 questions, we can complete.
Sir, I just wanted to clarify on the guidance front broadly. So I understand this time in terms of the margin may be slightly lower. But from the third quarter, again, we will come back to a 19% to 20% kind of EBITDA margin. and the revenue guidance what we have talked INR 4,000 crores, will it be slightly higher, INR 4,100 crores to INR 4,200 crores possible in this year?
Yes, quite possible sir, but we are facing a little bit rainy problems in the areas. Otherwise, we would have done much, much better than that. We will try on this. We are even trying towards it...
And on the EBITDA margin front, from the third quarter, will it come back again to 19.5%, 20% kind of a number for at least 2 quarters.
The margins, because of the rains and all, they are coming down because the overheads are going up and then turnovers are coming down. So due to that, that impact will be there, sir, 2% to 3% so impact. [Foreign Language] And nowadays, the new orders which are going to take -- we want to start that Mysuru, 2 projects and that Gunturu, 1 project, they have a little bit lesser margins than what we have expected earlier. So a little bit decline is there, sir, that we have to expect.
[Operator Instructions]
Management just a sincere request if you could just speak a little closer from the mic because the voice was sounding a little distant. The next question is from the line of Niteen Dharmawat from Aurum Capital.
Sir, as you mentioned that there is a slowdown in awarding the project. And our order book has also come down now to INR 5,600-odd crores versus INR 6,200 crores. And during last quarter, you mentioned that we are expecting some projects to be awarded, but it looks like there is some delay over there. So what is the way forward over here in this quarter, what is the visibility about the award of new projects? And what is the order book that we are targeting now?
As of now, we are targeting about, say, INR [ 4,500 crores ] plus only we are targeting that took from -- as I earlier said in various sectors like railways and irrigation, NHAI, highway projects, irrigation projects, all put together. So this is going to be okay for us. Even mining we are [indiscernible]. So hopefully, we get the orders what we require in this year, sir.
During this year or during this quarter, sir?
Actually, it seems to be a bit difficult for this quarter, sir, because all the tenders are getting postponed. And I think they are lining up for the preelection thing only. So we'll have to wait for the preelection rally.
I understand. And the revenue guidance that we have provided, we are maintaining that as of now?
Yes, we are maintaining.
[Operator Instructions] The next question is from the line of Ashish Shah from JM Financial.
Yes. Good afternoon. Sir, the first thing, if you can just come again on the railways part because the voice wasn't clear. One could not make out. So you said that we have already bid for these railway projects or that's something that we are planning to do. Can you clarify that, sir?
Railway projects, time is extended actually. Otherwise, bid would have been done in the last month, 24th, now it has gone to this month 24th.
Right. And sir, these are what? These are line doubling line tripling kind of projects or these are total composite scope?
These are tunnels and track and other structures.
Sir, what's the total value of these contracts which you have bid for and we are awaiting the opening of the tenders?
Some irrigation projects are there, that's all.
In railways, I'm saying...
Irrigation projects we have put on bid, out of which 2 were open. And out of -- I think all are open, we are -- out of 2 bids, we are standing L1, I think. But otherwise, it is not issue. And we do not know because of the election scenario here.
I was asking in railways, what was the total value of the contracts, which we had bid for?
Railway? Not we have bid. We are supposed to bid actually.
Okay. Supposed to bid and not yet bid. Okay. But what will be the approximately value what we are planning to bid?
All put together around INR 3,000 crores. .
Around INR 3,000 crores worth of bids.
Sir, secondly, on the irrigation side in Telangana. So if you can just help with the order -- remaining order value for some of the major projects we have like the Palamuru and the 2 packages of Kaleshwaram, what would be the outstanding order book of these projects?
Yes. Sir, for Package 4, outstanding is INR 850 crores. For Package 3, actually, it is INR 493 crores. [ Vattem ] is INR 132 crores. Mallana Sagar is INR 56 crores. All put together, it is around INR 1,594 crores, sir, irrigation projects.
Right. And sir, in this particular Package 4, so because this is the pump irrigation. So do we have now the visibility to continue with the residual value? Because I think what is left now is largely the value of the pumps that we need to install, auth work, et cetera, may have been done. So any visibility that we have on progression with the remaining value?
What's your question, sir.
Sir, my question is that we have been waiting for this clarity to emerge on the pumphouse package because it leads tie up from the financial institutions. So do we have enough visibility to proceed with this INR 850 crore residual value? Or we'll still pause and see what happens?
No, actually, to that I think election is very near. And now we are continuing to work only on that. So I think [indiscernible], we will get to know all that. It is well within 10 or 20 days.
The management of KNR, sorry to interrupt you, sir. So can you speak a little closer to the mic because the voice is a little distant.
So that is really -- we are now continuing to work sir. I think election results is out by 3rd of the upcoming month. So I think it is very near and within 20 days, we'll get to know what to do on that. Until such time, we are continuing to work on that project because almost project is completed about 50%. So at this stage, if you stop it also, I don't think things will go in our favor.
Right. I think we have opened the LCs for the pumps. Have you already ordered out?
No, I think most of the parts has come, but the main pumps need to come. Main pumps, I think we need to flow around another INR 200 crores this thing. That we will do only after the election. .
Got it. Sir, lastly, is there any discussion for the monetization of the upcoming HAMs, the newer ones which we have in the portfolio? Or -- that is something which is a...
It is in the discussion stages, sir. I think MoUs are on. I think these all -- with cues, I think right now, some sort of clarifications and all in the final stages all other to enter into MoU kind of thing.
[Operator Instructions] The next question is from the line of Jiten Rushi from Axis Capital.
Sir, first question on the NHAI bid pipeline, so as you highlighted, almost INR 90,000 crores is the pipeline. So what value -- in terms of value, what are we going to bid for in the coming 2, 3 months?
Actually, the bids are there and they are plenty in number, it is there. We're now trying to focus more than INR 800 crores tenders only because down below are likely to go at a bad price which we have already experienced in the last tendering season. So definitely a little sensible bidding is likely to happen over above INR 800 crore, INR 1,000 crores plus only. So definitely, we are now focusing on those projects. And certain projects, which are just adjacent to the ongoing projects and all those, we will be bidding even the below par. That we will be an add-on thing will be. So those things will focus on the lesser price. But rest of all about INR 800 crores plus only, sir.
So will you be building, as you said, some adjacent projects. So what would be those value terms? And how much you will be participating in south in terms of value out of this INR 800 crores .
Sir, No, INR 800 crores is the limit, which we are just telling. And there are certain projects going around our quarry areas and there are around our interested areas are the adjacent projects where we are working. Those areas, there are some smaller projects also, which we would like to focus on that.
What would be the value of those projects?
Even the lesser price, we would like to quote in those areas. And the new areas and all, we are focusing about INR 800 crore.
Okay. So my question was like you said that you're focusing on specific areas where you've got quarries and ongoing projects of your interest. So can you give value of how many projects are in those areas? And what is the value you are targeting in those areas like 20,000 or 30,000...
I have it, sir but I can share it later.
And sir, initially, you said there are some projects obligation in AP. So those projects are already awarded that is what I understand. I think the Telangana projects are awarded. AP, still the bids are yet to open. Am I right?
Yes, sir.
So what would be the value, sir, can you share?
INR 3,000 crores only.
Hello?
INR 3,000 crores.
INR 3,000 crores. Okay. So the AP irrigation is around INR 3,000 crores. So this would get awarded when, sir. You've already participated in the bid, right?
Yes.
And when is the tender is going to open, sir?
I think 2 of them got opened, 2 of them, we were L1 and I think ...
Post elections only .
Post elections, after elections only we will get to know all these details because during election -- if election code is there, after they have opened the tenders, they were likely to finish the [indiscernible] now the election code has been announced. So they stopped all that.
Okay. Sir, I think in the opening -- in the first -- during first participant question, your voice was not clear. So it was difficult to understand what you were trying to say. So I just wanted to understand like what is the project in which you already participated and bids are yet to open. If you can just repeat. Sorry for my -- pardon, I couldn't hear you well. You said mining around INR 12,000 crores in Jharkhand and then some irrigation projects in various states, you said there were some other projects also which you highlighted in the first question. So can you please highlight that if possible.
If you look at that some railway projects, which we had in our mind or -- on which we are studying -- bid study is going on is about in the -- in Andhra Pradesh, we have 1 tunneling project about INR 1,350 crores. And there is another...
INR 150 crores is what you said.
INR 1,350 crores.
That is tunneling for railways. Okay.
Yes. Tunnels with railways and the formation, all that is there in that. apart from that, we have some INR 850 crores project is also there. But there's no tunnel over there but only formation, structures, all that is there.
INR 950 crores.
We have one project in Orissa about INR 1,100 crores or -- I'm not very sure INR 1,050 crores or INR 1,100 crores around that.
So that is for railways, sir, INR 1,050 is for railways, Orissa?
Orissa. And apart from that, we were also focusing on from Jharkhand area, There is a mining bid about, say, INR 12,000 crores, which is about 12 years' time. Within 12 years time, we have to execute that. So actually there, I said, my certificate, which I have experience according to their terminology. What they used is that formation of -- by transporting it like that, they have asked one wording to be added into our this thing, which now we are focused on our department, irrigation department and NHAI department because without transporting, we haven't done any effort.
So it's going to be directly we are qualifying with that. If we don't get such qualification, if they are not giving the certificate, then we can even go with the [indiscernible]. Apart from that, we are also thinking of doing some irrigation projects from Maharashtra, MP and to some extent UP, some extent we have projects in various areas like Telangana, we have participated. Andhra Pradesh, we are not participating. We haven't taken up a single tender as of now. But we would look at even Orissa also we are looking at it. And we are even looking at in -- there is one more, yes, Orissa, yes.
And sir, last thing from my side in terms of guidance. So far this year, revenue is at around INR 4,100 crores, INR 4,200 crores if possible and EBITDA would be steady state guidance which you gave but what would be the guidance for FY '25 in terms of revenue ordering flow because we expect the spillover of order inflows next year where we are not able to recoup this year, where we are talking about INR 5,000 crores to INR 6,000 crores.
Actually, the balance order also -- see even if I don't get an order, the balance order, whatever we left over, we need to be executed in upcoming year only. So that to about, say, INR 5,000 crores -- the balance is there. INR 7,500 crores balance is there, but I think we can assure about 15% growth we can even take. If we add up new orders and by which we are able to work on it, definitely, we're going to do much better. But sir, right now, the figures are little bit clumsy because I can't imagine that this is going to come [indiscernible] increase, which has not yet come. That is not going to be right part on me that I can add and tell you, but we try our best.
Yes, 15% steady state revenue growth, we can assume for '25. And sir, the CapEx guidance for '24 and '25, sir.
CapEx guidance would be.
For this year, we did around INR 60 crores in the first 6 months. So we expect that it will be somewhere around INR 100 crores to INR 120 crores for this year. And next year, definitely based on -- if suppose, we are getting new orders actually, otherwise, normal INR 100 crores, INR 120 crores will be there. If we are getting new orders, in new sectors, then definitely, requirement will go up.
[Operator Instructions] The next question is from the line of Vasudev from Nuvama.
Sir, just I wanted to know that the pending equity requirement of INR 535 crores. This is including the 3 projects where appointed date is pending or excluding those 3 projects?.
Yes. So actually, the pending equity requirement [indiscernible] what has happened that this 5 projects actually that is -- we supposed to put equity INR 732 crores. We already put equity of INR 456 crores on that project. And for this balance here, we are going to put INR 95 crores in '23, '24 and 2024, '25 we put around INR 180 crores. And for new 3 HAM projects, which we appointed, it may come in Q4 of this year. Their equity requirement is INR 258 crores. For that, this year, we need not required to put anything. But next year, actually, it is '24, '25, we may require to put INR 130 crores and '25/'26 around INR 65 crores and '26, '27 is balance INR 65 crores.
Okay. That was helpful, sir. So my next question is if you can tell me how much is the pending receivables from the Telangana state government?
So pending receivables as of date, actually, including unbilled is around INR 650 crores are there, sir.
Okay. [indiscernible] And sir, just 1 last question, if you can give the revenue split for the quarter between roads and irrigation.
For this quarter, actually, irrigation contributed 24%, HAM contributed 47%, the road agency contributed 23% and back to back is 5%.
The next question is from the line of Uttham Kumar Srimal from Axis Securities Limited.
Congratulations on good set of numbers. Sir, my question pertains to the competitive intensity currently. So how do you see the competitive intensity panning out in both HAM and EPC projects moving ahead?
Sir, actually, as far as competitive intensity is there because you know for last 6 months, actually, NHAI has not awarded the project. So really, as of now, there is nothing in place. But what we expect that now NHAI actually, they are giving and they are coming on very lower [indiscernible] around INR 800 -- INR 600 crores to INR 800 crores of projects, they are coming. So definitely, on that project, there will be -- intensity will be very, very high. So that's why we are targeting to quote more than INR 800 crores only projects, where we may expect that intensity maybe is a little bit lower. But definitely, we are to see.
Okay. And sir, a couple of data points. What was our receivable, unbilled revenue and retention money this quarter?
Unbilled revenue is around INR 665 crores, yes.
And sir, receivables and retention money? .
Receivables is as of September INR 840 crores is our receivable, sir, and retention is INR 210 crores.
The next question is from the line of Ronald Siyoni from Sharekhan Limited. .
I had just 1 question regarding the other expenses at this quarter, we are seeing very higher other expense. So was there a one-off in this?
Sir, in other expenses, what is happened, we have 1 project that is KNR Tirumala, this project has got a final completion certificate. So on that project, actually, there was some descope, actually, in the overall project cost to the extent of around INR 12.7 crores. So that has been charged off in this period, actually that one-off is there. And this quarter, actually, we have that [indiscernible] to the extent of INR 10 crores. So that's 2 one-off items are there in other expenses.
Okay. So approximately INR 20 crores, INR 22 crores, INR 23 crores one-offs are there sale. So if we adjust that the margins will be good.
Yes, yes, that's correct.
The next question is from the line of Shravan Shah from Dolat Capital.
So, this Kerala 2 HAM projects, so how much now we are expecting to execute in the second -- so both the outstanding order book is close to INR 1,773 crores, so how much are we planning to execute in the second half? And will the remaining will be executed in FY '25 entirely?
Definitely for this year, around -- we may execute around 50% actually in these projects and balance 50% definitely in the next year. So you can say, INR 800 crores, we are expecting...
Before this financial year.
Before this financial year.
Okay. Okay. Got it. And then broadly, if you look at in terms of the irrigation, so in the second half of how much one can look at the execution from the irrigation and how one can look at the FY '25?
Irrigation for balance actually -- because irrigating outstanding order book is as of now around INR 1,600 crores, sir. So we expect that around maybe INR 400 crores to INR 450 crores will be there in this next 6 months, sir. Balance will in the next year, actually.
Okay. So broadly, the remaining INR 1,200-odd crores, most of it would be executed in the FY '25?
Yes, next year, yes, correct. Correct.
Okay. Okay. Okay. Got it. And then this monetization that we said that with tube is at final stage. So whenever we will be doing this deal, so this will be for 4 HAM projects and the cash that we will be getting that will be entirely in the FY '25? Or there is some money that we can get in the FY '24 also?
Because 1 project that funding, we have achieved the PCOD. So that project, we expect to be completed in '24 and other projects because we have to complete the construction, that project is going to complete in next year. So that monetization will happen in next year only.
The last question is from the line of Nikhil Kanodia from HDFC Securities.
Sir, I believe that you said that the receivables from the Telangana Government as on date is INR 650 crores. So sir, if you can give me the receivable amount as on September?
Generally, this will work out as on date. But as of September, receivables is INR 118 crores actually. But unbilled and -- unbilled we will work out as on date actually, September receivables is INR 118 crores.
Telangana projects, right?
Yes, Telangana irrigation only.
Okay. And sir, what is the cash approved that we received until date from those projects?
That's why after that, we received cash of around INR 130 crores actually -- sorry, INR 170 crores we have received the cash. And we have billed around INR 141 crores -- billing is INR 130 crores -- a total INR 650 crores is there as of date actually.
Okay. Okay. And sir, do you mind repeating the sectors where you are looking to diversify since the -- like they're not witnessing much on the road sector. So which all sectors are you willing to diversify and what preference?
As our ED sir told that, we are looking to diversify in the railway sector, in the irrigation in other than Telangana state and mining development and tunnel project actually -- in tunnel project -- some projects -- in railway, actually tunneling projects are coming. So we are looking in these sectors and metros also and that is our -- so these are the -- we are okay to do what are the construction-related activities in infrastructure space actually.
As there are no further questions, I would now like to hand the conference over to the management for the closing comments. Please go ahead, sir.
Thank you all for joining us on this call. Please reach out to our Investor Relations Consultant, Strategic Growth Advisors or us directly should you have any further queries. We can now close the call. Okay. Thank you.
On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.