PNC Infratech Ltd
NSE:PNCINFRA
| 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 |
287.75
559.3
|
| 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.
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Q2 FY '25 Earnings Conference Call of PNC Infratech Limited hosted by Centrum Broking Limited.
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] This conference is being recorded.
I now hand the conference over to Mr. Mangesh Bhadang from Centrum Broking Limited. Thank you, and over to you, Mr. Bhadang.
Thanks, Susha. Good afternoon, ladies and gentlemen. On behalf of Centrum Broking, I'm pleased to welcome you all on the PNC Infratech Limited Second Quarter FY '25 Earnings Conference Call.
We have with us today the Managing Director of the company, Mr. Yogesh Jain, along with the senior management team of the company. We'll begin the call with the opening remarks from the management, which will be followed by the interactive Q&A session.
Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call. Let me start wishing everyone on the call a very happy Deepavali and a prosperous new year from PNC Infratech family. Today, I have with me Mr. T.R. Rao, Director Infrastructure; Mr. D.K. Maheshwari, Senior Vice President, Finance; and Mr. Jigar Kavaiya, our Investor Relations Advisors.
We have uploaded the financial figures and investor presentation on the stock acting and company website for your reference. Initially, I would like to mention key update of the industry, followed by operational developments of the company and highlights of financial performance during the second quarter and the first half year of financial year 2025, post which we will be happy to answer your questions.
Over the past 6 months, the infrastructure sector experienced unprecedented subdued execution activities, largely impacted by: intensely widespread monsoon during the period from mid-May 'til mid-September; critically low new project awarding activity by MoRTH, including NHA over the past 1.5 years; and the regulatory duration of a contract date for the already awarded projects due to nonavailability of enough vacancy projects land for commitment of construction; complete hold on the [ RS 1 ] program; and the general election of '24.
MoRTH and NHA awarded only around 700 kilometers of new projects until [ August ] 31, '24 while around 2,700 kilometers of base line was constructed during this period, both works significantly lower than 1,750 kilometer awarded and 3,200 kilometer constructed during the corresponding period in financial year '24, though as per the MoRTH and NHA, the bidding awarding activity would be expedited in coming months starting from December '24 onwards. Across all the modes of implementation and commitment of physical execution of our big projects, will always be subject to availability of sufficient [indiscernible], any continuous strategies for uninterrupted constructions. It will also a fact [indiscernible] recognize that even though a large number of projects could be awarded before the end of current financial year, visibility of projects and translation into revenue could only be seen from the second half of financial year '26, not before that.
While National Highway and the Express, the awarding activity remain muted over the past 1.5 year at the central level, industry witnessed a significant headway in new projects bidding activity by the Indian railways [indiscernible] and by some of central PSUs. And new governments have been formed in the state of Telangana, Andhra Pradesh, Haryana and Jammu and Kashmir and after the ongoing elections new government would be formed in Maharashta and Jharkhand, significant new business opportunities in the infrastructure space are expected to emerge in the new -- in the near future with the states.
New projects are also expected to be launched in airport development space in coming months and many of the domestic airports are poised for major upgradation and expansion activities.
On the project implementation front, during the quarter, the company subsequently entered [indiscernible] Private Limited received [indiscernible] and completion certificate for 4-laning of Challakere to Hariyur HAM project on 11 September '24 and PNC Bithur Kanpur Highways Private Limited received final completion certificate on 29 October, '24 for 4 laning of [indiscernible] HAM project.
During the third quarter of financial --- current financial year, the company subsidiary, Hathras Highways Private Limited and [indiscernible] Private Limited expected to receive provisional completion [indiscernible] for 4 laning on Mathura 1C and Hardoi bypass HAM project respectively.
On the project awarding front, the company received LOA on 10 October '24 for an EPC project of contract value INR 2,040 crores from CIDCO Bombay for integrated infrastructure development in Town Planning Scheme 8, 9 and 12 of NAINA Project.
Second, received LOA for 2 EPC projects from Maharashtra State Group Development Corporation, MSRDC, for an aggregate contract value of INR 4,630 crores on 14 October '24, including construction of access-controlled Pune Ring Road Package E2 for INR 2,268 crores, and construction of access-controlled expressway from Jalna to Nanded, Package [ Journey 4 ], which is connected to Nagpur to Mumbai, it's the Samruddhi Mahamarg for INR 2,362 crores.
With the award above mandate, the total new business secured in the current financial year 'til date comes to INR 6,670 crores. Company has received INR 62 crores in the month of August '24 and INR 108 crores in the month of '24, totaling INR 170 crores out of the total outstanding of INR 222 crores from the government of Andra Pradesh towards work done in the canal upgradation project in AP.
And company will be resuming execution of remaining works of the canal project of [ value ] over INR 900 crores shortly.
Moving on to the operational and financial performance of the company. Out of the company's 28 fund-based projects, 3 are BOT toll projects, 2 are BOT Annuity projects and 23 are HAM projects. The aggregate build project costs of the 23 HAM projects is over INR 30,000 crore, which is one of the largest highway HAM projects portfolio in the country. Out of total 23 HAM projects, company achieved PCOD COD for 11 projects, 8 projects are under construction, out of which 4 projects are expected to achieve PCOD before the end of current financial year. 3 projects achieved financial closure and appointed dates are expected to [indiscernible] shortly.
For 1 project, concession agreement was executed with the authority on 7 March '24 and financial [ clear ] has been executed and submitted to MPRCD for the financial closure.
Total equity requirement for ongoing and awarded HAM projects is INR 3,092 crores. As of September '24, company already invested INR 2,220 crores and remaining equity of INR 872 crores to be invested over the next 2 to 3 years. The internal accruals that would be generated over the next 2 to 3 years should be adequate to meet the above equity investment requirements.
Now moving on to our order book. As of 30 September '24, the company unexecuted order book stands over INR 19,900 crores, which includes 3 EPC contracts recorded by the company for aggregate contract value of INR 6,670 crores.
Out of the unexecuted order book, highway and expressway contracts contribute around 65%, while water canal, area development and railway projects contributes around 35%.
In terms of the proponents of the total unexecuted order book of over INR 19,900 crores value of MoRTH, including NHAI content comes to 33% and value of contracts awarded by other authorities and other clients comes to 67%.
During the first half of financial year '25, company has booked a total revenue of INR 429 crores in the drinking water segment.
Now I would present the result for the quarter and the half year ended September 30, 2024. The stand-alone revenue for second quarter of financial year '25 is INR 1,140 crores. The EBITDA for second quarter of financial year '25 is record deciding INR 134 crores. The EBITDA margin for the second quarter of financial year '25 is 11.6%. The profit for the second quarter of financial year '25 is INR 81 crores. The PAT margin for the second quarter of financial year '25 is 7%.
The stand-alone revenue for H1 financial year '25 is INR 2,894 crores. The EBITDA for H1 '25 is INR 727 crores, which is higher by 54% as compared to INR 473 crores in the H1 financial '24. The EBITDA margin for H1 financial year '25 is 25.1%. The profit for H1 financial year '25 is INR 502 crore as compared to INR 296 crores in H1 financial year '24, a growth of 69% on a year-to-year basis. The PAT margin for H1 financial year '25 is 17.3%.
Consol basis, the revenue for second quarter of financial year '25 is INR 1,427 crores. The consol EBITDA for second quarter financial year '
25 is INR 356 crores. The EBITDA margin for quarter 2 financial year '25 is 25%. The consol PAT for the second quarter of financial year '25 is INR 83 crores. The PAT margin for quarter 2 financial year '25 is 5.8%.
Consol half-yearly revenue for financial year '25 is INR 3,595 crores. The consol EBITDA for H1 financial '25 is INR 1,325 crores as compared to the INR 836 crores in H1 financial year '24, a growth of 58%. The EBITDA margin for H1 financial '25 is 36.9%. The consol PAT for H1 financial year '25 is INR 659 as compared to INR 329 crores in H1 financial year '24, a growth of 100%. The PAT margin for H1 financial year '25 is 18.3%.
On the stand-alone balance sheet side, as of 30th September '24, our net working capital cycle is 144 days. Our net work on the stand-alone basis is in INR 5,259 crores as on 30th September '24, whereas total stand-alone debt is INR 410. The total cash and bank balance as on 30 September '24 is INR 640 crores. We have a net surplus of INR 230 crores. This calculates to net debt to equity of 1.08x.
Our net worth is INR 500. Consol net worth is INR 5,830 crores, whereas total debt is INR 8,780 crores as on date 30 September '24. The total cash and bank balance, including current investment is INR 1,535 crores. This translates to net debt to equity of 1.5x.
With this, we'll now open the floor for question and answers. Thank you.
[Operator Instructions]. The first question is from the line of Shravan Shah from Dolat Capital.
Sir, just to check on what we recently discussed regarding the MoRTH 1-year ban. So any update first? What kind of -- even I think our petitions has also been rejected. So what's the course of action for us? And then, by when can we throw some clarity on that part? So that is one.
And then, if there is no clarity, then in terms of growth, how we are now looking at how much more and from which segment sectors are we looking at to get the orders?
We know then that still the petitions have not been allowed by the [indiscernible] in terms of honorable High Court. We are evaluating options, including filing of an appeal against the order of the MoRTH case as well as the order of the single case. We are evaluating that, one of these options. We are also taking measures to mitigate the impacts because of this order, how we can mitigate, to what extent we'll be able to mitigate. And in case of any positive results, we'll settle the share after [indiscernible] to the exchanges. However, we are hopeful of getting certain relief from current challenging situation for that [indiscernible].
Second thing, we'll keep all the stakeholders updated any material development in this matter after due intervention to the exchanges and we appreciate and we trust that you'll understand the sensitivity of the matter and will not seek any further details or further elaborations, the matter being -- the matter being sensitive.
With regard to the order book, we still maintain, as I mentioned in the beginning of the year, that our order book for the current financial year guidance will between INR 13,000 crores to INR 15,000 crores. Already we secured around INR 6,700 crores of orders already. So remaining, we are expecting another INR 6,000 crores to INR 8,000 crores orders from authorities and proponents other than MoRTH just [ MoRTH ] as there are opportunities we identify. So we'll proceed those opportunities to secure further business before the end of financial year.
Sir, if you can help then which sector authority, even at state level, any state or authority road projects are we looking at? Is there any -- are any bids that we have already bid and the outcome is to come and how much more are you planning to bid maybe sector-wise if possible, that could be helpful because this is the most challenging for us too in terms of to get revenue visibility.
See, we had already submitted around 8. We submitted 8 bids for projects floated by other [indiscernible] other than NHAI and MoRTH. Some of them are state and some of them for central, including the railway bids with a value of over INR 11,000 crores. The price bids of these, we'd have to be actually open. So maybe next 1, 1.5 months, prices of these bids should open. So we are open and are hopeful of getting some projects from this business.
And further, what is other than again MoRTH and [indiscernible], there are around 12 bids have been invited by other agencies and other authorities, having an aggregate value of INR 14,000 crores, which we have identified for bidding and we'll be bidding these projects. If they are anything with opportunity, we can bid in these projects in the coming months.
So INR 11,000 crores is already bid and INR 14,000 crores we identified, so total INR 25,000 crores worth of projects, we are pursuing them.
We need to get up a very good success rate in this INR 25,000 crores to get the INR 6,000 crore to INR 8,000 crores kind of orders that we are looking at. So now just get back in terms of the guidance, what we previously said. So guidance revenues, so until now 19% degrowth is that stand-alone? Or last time, you said flat to minus 10% growth. So now what's the stand then for FY '26? We say, 15%, 20% growth. So what's the revised guidance and also on the EBITDA margin also?
This is the situation. The revised guidance for the FY '25 will be 15% to 20% declines and accordingly, FY '26 would be up to 30% plus growth.
Margin will be the same 12% to what we previously guided?
Yes, sir. It's about -- the figure is still the same.
Sir, if you can help us with couple of balance sheet debtor points, that would be grateful and even the project-wise order book so just to mobilization and advance retention money, HAM debtors, water debtors?
We cannot [indiscernible] again, discuss this one, because there are other participants that are there. So I request you go again, we'll come at this one going forward.
The next question is from the line of Sarvesh Gupta from Maximal Capital Private Limited.
Sir, before I ask a question, just...
I'm sorry to interrupt, sir. I would request that you please use your handset, because your voice is not clear.
Yes. Yes. Just before I ask the question, I could not hear the revised guidance. So is it 15% to 20% decline or what was it?
Yes. Yes, sir.
Is it minus 15% to...
15% to 20% decline.
And next year, 30% growth?
Growth.
And margins to remain...
Yes, yes. margins will be around 13%.
Between now...
In FY '26. FY '26 will be around 13%.
And sir, now that this matter which has come up of the ban by MoRTH. So you must be -- you must have had discussions about this asset sale with the counterparties. So is there any problem in terms of doing that transaction? Or everything is going as per plan?
We don't see any problem in the transaction. Everything is as per the plan.
And sir, by when are we planning to close this thing? And when can we expect to receive the money?
Out of 12 assets, for which we had entered into a master security purchase agreement in the month of January, we expect to close 10 mandates, 10 assets, which would end up the current financial year. And the remaining 2 assets will be in the next financial year.
Remaining in the next 2 financial years. Okay. And sir, now coming to your growth, the execution in this quarter, that has been sort of very subdued, like almost for H1 also, sir, it is almost down like 31 percentage. So how will be the execution? I mean I can understand that now no new orders will flow through. But in any case, if they were to come, that would have been probably impacting the revenue of FY '26 and not FY '25, which is coming from the current order book only. So why should we have such a decline in FY '25, 50%, 20%? And why are we seeing such slow execution on our existing order book in terms of revenue translation?
See, we appreciate your kind concern about the decline in the revenues. Particularly, what has happened, indeed, if you see the background of last 1, 1.5 years, nearly 2 years, the awarding activity has been very slow by the [indiscernible], which was one of your focus sectors and focus authorities. As you know, last 1.5 to 2 years, the awarding activity has been very slow. One way the ministry talks about 40 kilometers of road, but they are targeting 40 kilometers of road per day whereas they're awarding less than 10 kilometer of a road per day awarding. Awarding is less than 20 kilometers for current -- for last 5 months, the awarding activities have been less than 6 kilometers. And yet, they are talking about 40 kilometers of build construction. So awarding activity has been very slow, so did not make the new orders last 1, 1.5 years, particularly from the [indiscernible]. And then strategically, we shifted our focus and we set our efforts to other areas and other state governments. That is 1 has aspect.
Second thing is they also -- as MD has mentioned, they put a break on the [ parkmala ] project. There was the general elections this year to the [indiscernible]. And also the monsoon was very active, very intense rains and very widespread, across our [indiscernible]. This time, unprecedently, monsoon continuously it was raining and particularly in our water sector where we need to lay the pipelines below the existing and also conserve the water tanks below the -- right from the underground. So they gave a -- these are all these projects have been severely affected from this. That has happened in the second quarter, obviously. This is one.
And third thing, an important thing. Though we got more than 6,000 worth of new projects before last year, these projects could not be taken up due to nonavailability of sufficient land, particularly in the [indiscernible]. That is [indiscernible] to Kolkata, 3 HAM projects, one MPRDC projects and one project in [indiscernible].
So nevertheless, so we have 8 new mandates. 5 already awarded mandates and 3 recently awarded mandates from MSRDC and CIDCO. These 8 mandates will have a value of over INR 11,000 crores for which we are expecting our appointed dates before end of this calendar year. And we are quite hopeful that the current construction and preconstruction activities right now.
In case of Maharashtra projects, immediately after the current election process and Code of Conduct gets over, we'll commence and we'll see some sizable income from these new 8 projects in the Q4 of FY '25, and we'll get a significant income from FY '26 onwards from these projects.
Understood, sir. In the Maharashtra, there are 2 projects. Now when there is a change in the government, do you foresee any problems in terms of getting the final orders for these 2 projects, which are sizable part of your [indiscernible] order book?
No, no, no. We don't foresee. It's a continuity of policies are there even last time also, there has been a change in government and we're executing a Nagpur-Mumbai expressway. I don't think there's any issue over there. There's formal [indiscernible] have been received, so we don't foresee any issue in any of the Maharashtra projects because the [indiscernible], these are developmental projects and very crucial for the socioeconomic development of the state. We don't see any issue.
We'll take the next question from the line of Niteen Dharmawat from Aurum Capital.
Am I audible?
Yes, sir.
Okay. My question is well, after this order, which has come, have we won any new contracts or we are yet to get that from authorities other than NHAI of course?
Yes. As we have mentioned, we submitted 8 bids to Indian Railways, different zones and 1 bid to Haryana Rail Infrastructure Development Corporation. And also 4 bids MSRDC. These are all other than the MoRTH bids. The opening of price bids are awaited because the Code of Conduct is in place in Maharashtra, so this INR 11,000 crores, we expect some projects to be secured. We are hopeful of that.
Got it. And what is the growth you mentioned. I missed that in the top line this year and next year. What is the guidance that we are given?
I already mentioned this year, there will be a decline between 15% to 20% in the top line. And whereas next year, we see a growth on the plus side up to 30% for FY '27.
Got it. And what is the EBITDA guidance that you have given for this year, sir?
Currently, we have given up to 12.5% and the next year would be around 13%.
We'll take the next question from the line of Jyoti Gupta from Nirmal Bang.
This is related to your -- am I audible? Just wondering on how does this affect your credit rating in terms after this order? Do you think -- will that impact in any way your balance sheet items because of this order?
After the quarter, they've already reviewed our rating and they are going through their committee. It's still stayed on the plus long term.
Sorry, sir, I missed that. What did you say?
They reconfirmed the same rating. There is no change in the rating. The rating agency duly scrutinized the things post the declaration of this order. And they reconfirmed the thing same as the AA+ for long term.
We'll take the next question from the line of Vaibhav Shah from JM Financial Limited.
Sir, can you just provide the data on the detail of 10 assets, which you're going to monetize now in FY '25? So what would be the equity value? And what was the investment in those 10? Earlier we had broken up in 10 and -- 7 and 5 assets, so can you provide similar data for 10 and 2 assets?
We have 10 assets, the equity value is INR 1,490 as against INR 1,739 of 12 assets. And enterprise value will be around INR 7,690 crores. That will be around INR 5,500.
Okay. Okay. And secondly, sir, we saw the muted execution in JJM for the second quarter. So was it only due to the heavy monsoon or also due to delayed payments? So how have been the payments so far on the JJM side? And last time, you had guided for revenue of INR 1,500 crores from JJM. So what would be the revised guidance given the weaker execution in first half?
Our raised guidance is to INR 1,200 cores and this is basically essentially due to the active monsoon. Many of the works affected at the site because even post-monsoon, also post-train out, so these after effects will be there, because most of the works have to be executed below the ground. Essentially, we've heard that. And since we have sufficient working pattern, any sort of delay in the payment doesn't affect our work.
And with regard to the payment, we are getting the payments. Certain payments are due. Exact figures we'll share separately. But we don't foresee because the -- 50% of that has to come from to central government and 50% has to be given by state and being a priority sector, we don't foresee any long-term issues in payments, but maybe there might be slight interruption in the payments.
And lastly, can you provide a breakup of equity investment over '25 to '27 of the INR 872 core pending equity?
Yes. Internally, we have received the deposit of all the [indiscernible] projects. This year, we have to include around 200 -- INR 486 crores and FY '26, it's INR 256 cores and FY '27, it's INR 132 crores. This is [indiscernible].
And sir, the appointed, so all the projects by December '24?
Yes, we are expecting, yes.
We'll take the next question from the line of Deepesh Agarwal from UTI AMC.
Sir, my first question is to understand is on the pipeline on the JJM projects, I think it has been quite long since we have last won the projects in JJM. How is the pipeline looking at? And are we active in bidding for those projects?
No, no, we are certainly looking very actively, but in case of any further projects come up in the JJM space. As of now, there's no major projects in the JJM because of the elections and at least the [indiscernible] provision that happened last year and that followed the general elections certainly for the [indiscernible]. So if any projects are coming up in JJM, certainly, we'll look into those opportunities of pursuing them.
Sure. And sir, I want to understand on the diversification side. Now, with the restriction on the major customer on the road, how are you thinking about diversification beyond road and water? I understand you are bidding for some railway projects, but beyond this, what is the -- your preparedness in bidding for projects, team building, et cetera?
No. Apart from railway projects, as you know, we got the area development project, major area development project from CIDCO. This is certainly a diversification because it's not a highway project, it's not a railway project. It's a development project. In the [indiscernible] airport, this NAINA project is a Navi-Mumbai airport influential notified area. They are constructing a new city over there under different town planning schemes. It's a comprehensive development of their new city. So we got that project to cover more than INR 2,000 crores. Certainly, it's a big thing and it will also open the start for us for the entering into the area development projects across the country. So this is the one diversification area.
And also, we are pursuing similar projects. Some of the projects are coming up in UP also by [ UPCDA ], the area development and the industry area development.
And also railway, we have bid railways. And we have senior railway officers. We [indiscernible] from railway. So they are also pursuing and the railways also.
And the water segment, apart from the [indiscernible] mission, we are also looking at the other water projects including treatment plants and [ pump ] some collaboration with the [indiscernible].
So we are looking all the options. So to foray into diversification, foray into new sectors and new spaces.
We'll take the next question from the line of Parikshit Kandpal from HDFC Securities.
Sir, my first question is these new projects which you said will move into FY '26, so these are the [ Kujar ] and the [inaudible] projects?
The [indiscernible]. And the [indiscernible] projects.
So these 2 where the building has been suspended. So we continue to be part of that 10 projects, which we get exercised in FY '25.
Yes, yes, yes. As you know, these 2 are the SPV projects. Any suspension [indiscernible] doesn't have any consequence to these projects. These projects meant for [indiscernible] for implementation of a particular project. So the bidding and now it's a total inconsequence as to these 2 projects. So these 2 projects will be a part of first tranche, which we expect to close before the end of the current financial year. Only [indiscernible] and [indiscernible] where we got the [ PC body] very lately. So those 2 projects will be in the next financial year. That also we'll be able to close during the first quarter of next financial year.
Okay. And sir, second question is when someone is debarred like now, I mean, the bids are not open and generally we -- the bids are disqual and we are disqualified, the contractor gets disqualified. But in case where the LOA has been signed and FC has been achieved, like in the case of [indiscernible] and those which are pending maybe, so how does the authority assess those projects? So will those projects be progressed? Or is it likely be binding now on the authority to proceed and award those projects? But there still is some room that they will still reevaluate and look at -- see how you get awarded?
No, no, no. This awarding project and this thing is irreversible. And this development affecting from 18th of October, this has nothing to do with those projects. So these projects will go as progressing and whatever our projects we'll secure, those projects will go ahead with the execution and we'll complete those projects. So there is no point of any kind of a review of these projects in with the ordering position.
So the LOA is the main document which basically is the cut off kind of a document where if it has been issued before that date, so then it has to be honored by the authority?
When we have executed the contract and given agreements for these projects and we have received a mobilization advance also.
Okay. So for all these 3 projects, [indiscernible] and those 3 packages, so you'll receive mobilization advance also?
Those projects are -- appointed dates are to be declared. Those concession agreements have been signed. [indiscernible] so those projects, appointment dates will be declared. So that's nothing to do with this order.
So I just want to understand legally how it is binding in terms of like what's the cut-off date. So is it the LOA which decides that or the signing of concession agreement that decides that, that authority will not take any punitive action against these 3 projects? So how do you --- -so what confidence do you have on that? So what determines that I want to understand.
Even the opening of the bid is still with the cut-off date, before [ they're away ]. If the bids, financial bids are open, the figures we say, only for bidding process, so that's the thing. If the LOA is given, it's totally irreversible.
Okay. So now just on the AP side now, so one thing you touched upon was that the project, the canal project is now restarting and you have received the payments. Just wanted to understand any of the opportunities you look at now, the building out of the AP city, AP state, so any further opportunities you're looking at kind of replace the shortfall which may happen with the NHAI from the AP state?
Yes, we are. Yes. We are. We are. We are certainly looking at the opportunities because even for the [ Amaralati ] new capital for the AP World Bank is granting INR 15,000 crores work for the infrastructure development there. And also state government is coming with some other projects.
Also the state government is contemplating connecting both Godavari and Krishna and the [ Bana ] rivers. So many irrigation projects that may come up in the state government. So secondly, we'll look at those opportunities, we'll pursue it because this government has got more than 4.5 years -- more than 4 [indiscernible] to continue certainly, we'll pursue opportunities there.
The guidance of 14,000, 15,000 for this year despite not factoring anything from NHAI itself, so you have that confidence that you'll be able to deliver that, right?
Yes.
Yes, yes.
The next question is from the line of Janak Mehta from LKP Securities.
Am I audible?
Yes, you're audible, sir.
So in the investor presentation, I see the EBITDA margin for the H1 FY '25, 25%. So are we maintaining the same? Or did you mention 13%?
EBITA margin FY '25, as told by T.R. Rao, it will be around 12% to 12.5% in FY '25. But however, in FY '26, it will be around 13%.
Okay. Because the first half, I see it is mentioned 25% for the H1 as of now.
No, no. Actually, H1, it includes the arbitration award. So it is the standalone also, because it includes the arbitration award. So it is showing that one reflecting that one and the higher thing. Otherwise, the EBITDA margin, without considering the arbitration or whatever, it will be between 12% to 12.5%, what we had mentioned earlier.
We'll take the next question from the line of Vishal Periwal from Andri Stockbroking.
A couple of clarifications. I think you mentioned that the pipeline of projects that you will be bidding on is INR 25,000-odd crores. INR 11,000 crores is railway. So this INR 14,000 crores is from which authority? Can you give some breakup on that front?
See INR 11,000 crores -- INR 14,000 crores, what we are thinking. There is 8 railway routes are there. And there is 1 new state industry development area and 1 in UP expressway industrial development authority. Then is 1 bid by Airports Authority of India and 1 in Maharashtra State Industrial Development Corporation. So these are 12 bids other than a MoRTH 8 and NHAI. So of a total value of INR 14,000 crores.
Okay. Got it, sir. And then is that the right way to understand the next year's growth rate of 30% on the magnitude, dependent upon the time we receive of AD, which we are expecting by December 24? That's a right way to understand, right sir?
Exactly. Exactly. See, whatever spillover things are there on the ongoing progress because the 9 HAM projects are ongoing and also water projects and canal projects, these are the projects which are ongoing. Definitely, there will be a spillover of these projects with the ban for. Apart from that, the 8 projects, what we are going to receive appointed dates before end of the current calendar year. So these projects are valued more than INR 11,000 crores. So coupling both will be 30% growth. 30% growth is also because of the low base effect of FY '25.
Right, got it, sir. And maybe one last thing. How are you seeing the CapEx for this year and anything on next year that you are planning as of now?
This year, CapEx, we want to revise from INR 80 crores to INR 100 crores to INR 30 crores to INR 40 crores, sir. And next year, it will be around INR 100 crores to INR 120 cores.
We'll take the next question from the line of Vasudev from Nuvama.
So you said CapEx, your plan is of INR 30 crores to INR 40 crores in FY '25. So out of this, how much have we done in H1?
In H1, around INR 7 crores it'll be only.
Okay, INR 7 crores. And can you help me with the toll collection numbers?
Yes. Toll collection, MP highway, it was INR 9.8 crores. In Kanpur highway, it's INR 18.1 crores. And Bareilly Almora, it's INR 15.1 crores.
Okay. And Narela one, sir?
Narela, INR 11.2 crores and Rae Bareli INR 32.2 crores.
Okay. And sir, just some clarification, what is the amount that we are reaching from Andar Pradesh you said?
INR 170 crores.
We'll take the next question from the line of Shravan Shah from Dolat Capital.
Sir, will you now be able to check the balance rate debtor funds?
Yes, yes. Thank you. Thank you. Thank you for your kind patience.
Sir, mobilization advance, retention money, HAM debtors, water debtors?
And the mobilization advance is INR 290 crores, retention is INR 140 crores and HAM debtor is INR 500 crores.
INR 500 crores. And water debtors?
Water is INR 710 crores.
INR 710 crores. Okay. Sir, is it possible to share serve a couple of outstanding project-wise order book value?
Yes.
Yes. Sir, Haryana Orbital Rail Corporation?
INR 670 crores.
And this aviation project AP?
INR 950 crores.
INR 950 crores. So it seems some increase has happened there.
That is estimate. This increase happened from INR 1,000 crores to INR 1,100 odd crores.
Okay. And Kanpur Lucknow Expressway, package 1 and package 2 -- package 1?
1 is 400 and package 2, 430.
Okay. And Mathura-Gaju Village?
It's almost [indiscernible]. 1P is INR 275 crores.
Sorry. Mathura Bypass, Gaju Village, last time, it was INR 342 crores, you said it is completed.
No. I think there's been some confusion because there are 2 projects, 1B and 1C on Mathura. So 1B is INR 275 crores outstanding and 1C, only INR 20 crores.
Okay. Okay. And [indiscernible], how much is actually left now?
INR 80 crores, sir.
[indiscernible] is almost completed. And expecting PC holding soon.
Yes. And in this [indiscernible] that is also completed?
Almost completed. Around INR 20 crores, INR 15 crores [indiscernible]. Both projects will PC holdings.
Okay. And last, Challakere-Hariyur?
INR 70 crores, sir.
We'll take the next question from the line of Sarvesh Gupta from Maximal Capital Private.
Yes, sir, see, this year, when we take the road assets will be sold to the counterparty. I missed the earlier communications. So how much of the debt reduction will happen on the -- from the consol entity? And how much of your profit will be booked?
Profit will be booked at the time of the closing date after adjustment of the [ entities ]. And the other debt, as we already informed that, total debt was INR 6,480 crores of the [indiscernible].
So from consol, INR 6,480 will go away?
Yes, yes. From INR 8,500 crores, approximately, the debt will remain INR 2,000 crores only.
And against this INR 1,400 crores invested, INR 1,400 crores invested equity, how much is the equity sale value for this?
But we have invested around INR 1,739 crores in all the projects there.
No, for the payment terms.
Payment is only INR 1,490.
INR 1,490 crores. And how much are you getting in return?
It will depend on the closing of the day when we will receive the payment, sir. There are certain adjustment.
See this is a material and a financially significant information. So we will not be able to share now without [ intimating ] to the exchanges.
The total enterprise value is around INR 7,700 crores.
We'll take the next question from the line of Vaibhav Shah from JM Financial Limited.
And for the CIDCO project, what would be APC share?
Which project?
The [ NI ] project.
95%.
Okay. And sir, for the AP canal, now what is the outstanding receivable after the receipt of INR 172 crores?
Excuse me, we stand corrected. For minor project, our share is 90% of the APC value, 90%.
And the AP canal, we had outstanding of INR 250 crore. Out of that, we received INR 170 crores. The balance outstanding would be around INR 55 crores.
Okay. And sir, now how do you see the execution animal for this AP project in the next -- in '25, '26, '27?
See, we will -- we are expecting to commence the works in the month of December. Because in the both canals, main canal and the branch canals, still water is flowing for the irrigation purpose. Once the water supply is stopped in these canals, we start from middle of December or from January, we expect works done up for INR 200 cores to INR 300 crores before the end of financial year. And again, next year it'll be around INR 400 crores. We are able to share some tangible figures only once we commence the work and how it will progress. Maybe in the next quarter, we'll be able to tell you.
And what is the revenue in first half from the project?
Revenue? No, no. The revenue in the current quarter Q2, because we are not able to do any work over there because both the canals are full.
Okay. Okay. And sir, lastly, when do we expect the money to come from the asset monetization B? For both the phases?
First tranche of 10 assets, my colleague had mentioned, before end of the current financial year, we should be able to realize the money and the remaining 2, before end of the Q1 FY '26.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Thank you, everyone, for your participation in our earnings call. In case of further queries, you may get in touch with the technical advisor, our Investor Relations advisors or feel free to get in touch with us. Thank you.
Thank you so much, sir. Thank you, members of the management. On behalf of Centrum Broking Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.