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PSP Projects Ltd
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Ladies and gentlemen, good day, and welcome to PSP Projects Limited Q1 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 the date of this call. The 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. Bharanidhar Vijayakumar. Thank you, and over to you.
Yes. Good afternoon, everyone. Thanks for logging in to the 1Q FY '24 earnings call of PSP Projects. From the company, we have Mr. P. S. Patel, Chairman, MD and CEO; and Mrs. Hetal Patel, CFO. We would have an initial remarks by the management followed up with Q&A session.Over to you, sir.
Thank you. Good evening, everyone. On behalf of management, I'm pleased to welcome you all to PSP earnings con call to discuss Q1 '24 -- FY '24 quarterly financial results. Please note, a copy of our all disclosures is available on the Investors section of our website, as well as on the stock exchanges.Anything said on this call, which reflects our outlook for future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces.Now, I hand over the call to our MD for his opening remarks. Over to you, sir.
Thank you, Kenan. Good evening, everyone. We welcome you all on the earnings conference call of PSP Projects Limited to discuss the first quarter financial results for the financial year 2024. We did upload the investor presentation with the repeated updates on the stock exchange and website. I believe you may have got a chance to go through the same.Let me begin by sharing a social responsibility that the company engaged during the quarter, which I'm proud of. On the World Environment Day, we planted more than 10,000 trees in a single day at Ruppur village of Patan district in the state of Gujarat. I take immense pride that our completed project of Surat Diamond Bourse now has the title of The World's Largest Office Building bigger than Pentagon as featured on CNN. I would like to express my gratitude that PSP Projects would be an instrumental part of such a [ landmark ] projects in India.I would take this responsibly to highlight that the company has aligned its corporate vision and mission with the ESG goals to move towards sustainable development. The company has incorporated the ESG Steering Committee that monitors the impact of company's actions on its interest on environment and society. During the quarter, the company received an award of Best Commercial Project of Gujarat by Realty Plus Excellence Award for our Surat Diamond Bourse Project which we did last [ festival ].Now, I would like to share some of the operational updates. As on 30 June 2023, the outstanding order book was to the tune of INR 5,321 crores, at 15% year-on-year growth over quarter 1 FY '23 order book. Out of the current order book, the private projects that is institutional, industrial and residential projects comprises of 46%, while government projects comprises of 55%. As on 30 June 2023, there are 48 ongoing projects, of which 81% are based in Gujarat, 19% are based in [ UP ], in all the company has completed about 210 projects so far since inception with 84% private projects and balance were government projects. During the quarter, the company completed 5 projects, some of the key projects, which are Construction of Money Plant high street in Ahmedabad, Reliance Corporate House in Ahmedabad, Construction of the Adani International School at Adani Shantigram, Construction of 1 Precast Factory Shed and a Precast Corporate House in [ Gandhinagar ], that is one of the first precast projects which [ we did ] as a whole.During the quarter, the company received an order inflow to the tune of INR 758 crore, excluding GST. The order inflow gets -- grew by 38% year-on-year. The major projects awarded during the quarters are: development of tourist/pilgrimage destination at Dharoi Dam, design build project for BAPS Sabha Hall at Vadodara and Surat, 2 commercial complexes in Surat.Let me share the key developments in all 8 UP projects. During the quarter, the revenue booked from the UP projects is to the tune of INR 196 crore, and as on date, the revenue booked is INR 959 crore out of total all UP projects. The projects are at the stage where the MEP and the interior works are going on, all the projects are working on [indiscernible], which we talked during the last quarter's con call. Update on SMC administrative building, yes, the project is also going on the fastest. Once we have completed respiration and we have already completed [ the compound ] wall. So there is no disturbance too much because of the monsoon. So rafts are going on, and we have already booked a revenue of about INR 50 crore till now. Sorry, already we booked a revenue of about INR 90 crore.Hetal ma'am will share financial performance of the company in detail, let me share a brief update with you. During quarter 1 FY '24, the revenue from operations grew by 48% to INR 510 crore. EBITDA grew by 37% to INR 65 crores. The EBITDA margin for the quarter is at 12.7%. As I've always mentioned, our margin profile will be in the range of 11% to 13% depending on the stage and execution of the project. The margin improvement is largely supported by advanced stage of works, which are [indiscernible] UP site. As I have always stated to my stakeholders that there is an ample opportunity in projects available, considering the government's push towards infrastructure. And now the project companies are also going for capacity [indiscernible].Historically, considering majority of the order inflow from state of Gujarat, I would like to highlight that in February 2023, Gujarat government on its budget has announced INR 5 lakh crore to be spent in coming 5 years for the development of infrastructure facility [indiscernible] ports, roads, railways, [indiscernible] projects, development of Delhi-Mumbai industrial corridor, Gujarat Financial Tec-City, metro rail system, bullet trains, railway [ bridge ] developments and urban and transportation projects, tourism, slum rehabilitations, hospitals, education, multi-level parking and many more. At the moment, PSP Projects is well placed in -- on the required financial over the years to become one of the preferred contractors and with the quality of building, [indiscernible] project.With this, I conclude my remarks, and now I would like to hand over the call to Ms. Hetal Patel to take us through the financial details.
Thank you, sir. The financial performance during the quarter ended June 30, 2023 is as follows: quarter 1 FY '24 versus quarter 1 FY '23. Revenue from operations for the quarter is at INR 510 crore versus INR 345 crore, which has increased by 48% on Y-o-Y basis. EBITDA for the quarter is INR 65 crore versus INR 47 crore, which is higher by 37% on a Y-o-Y basis. EBITDA margin is at 12.69% versus 13.64%. Net profit for the quarter is at INR 37 crore versus INR 29 crore, higher by 29% on a Y-o-Y basis. PAT margin is 7.13% compared to 8.13% on a Y-o-Y basis. During the quarter, the revenue generated from 7 UP projects put together was INR 196 crore during Q1 '24. Cumulative revenue till June 30, 2023 is INR 915 crore.I would like to mention a few of the important balance sheet numbers as on 30 June '23. Long-term borrowing stands at INR 97 crore. Short-term borrowings, INR 185 crore. Gross block of assets is INR 431 crore. Net block is INR 245 crore. Addition during the quarter is INR 18 crore. Net unbilled revenue stands at INR 261 crore. Retention, non-current is INR 110 crore. Retention, current is INR 34 crore. Mobilization advance stands at INR 223 crore.Working capital days are as follows: debtor days are 81; creditor days are 71; Inventory days are 33; total net working capital days are 43.Out of total credit facility of INR 1,047 crore, utilized limit is of INR 905 crore, out of which INR 120 crore are fund-based utilization and INR 785 crore is non-fund-based utilization.As on June 30, '23, the company has total fixed deposit of INR 323 crore, out of which lien-free deposits are INR 67 crore, FDs worth was INR 256 crores are under lien with banks for credit facilities. Work on hand as on 30 June is INR 5,321 crore. Detailed bifurcation is available on the uploaded presentation.That concludes the update on financials, and we are now open the floor for the question-and-answer. Thank you.
[Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital.
First of all, congratulations to the entire team for a robust performance. Sir, my first question is just [ trade ] guidance of INR 2,600 crore revenue for this year and INR 4,000 crores. So are we maintaining the same? Or are we slightly upgrading the same?
No, no. We are still maintaining the same.
Okay. Second, in terms of UP projects. So now outstanding order book is INR 576-odd crore. So out of this, by March, we should be able to complete how much INR 450-odd crore?
Yes, it should be in that range only because I am thinking about one project may spill over, that is related to 2 hospitals, which are going till March. So probably, you're right, the INR 450 crore if we consider out of INR 576 crore, it will be in that [ range ].
And for Surat Municipal project, previously you were saying. So this quarter, slightly lower INR 26 crore revenue because the project is just starting. But broadly INR 300 crore, INR 400 crore revenue we should be able to do this year and then INR 450 crore, INR 500 crore from FY '25.
No, it won't be INR 400 crore, but it should be near to INR 300 crore.
Okay. INR 300 crore this year, but from FY '25, it should be increasing?
Yes, it will be much higher than this year because then after finishing activity will start. So we'll be able to get more revenue when the activity start. Presently by till next month, I would see that the building will be going to subside only.
Okay. So now, sir, in terms of the bid pipeline, so last time we said INR 6,000-odd crores kind of a bid pipeline. So first, what's the total size and also, primarily the couple of projects if you highlight would be helpful. And majorly, I wanted to understand on the Ahmedabad station redevelopment. So what's the status of -- what's the likely -- or in terms of the -- getting the project, any update on that would be helpful.
See, the bid pipeline, I would say, remain still in that range of about INR 6,000 crore. Yes, probably, we are now talking on -- and discussing on and working on this railway project of Pandharpur. At the same time, we may bidding for Delhi airport -- Delhi railway station also because we are not qualifying the railway. So probably that would itself becomes more than 2 INR 6,000 crore. But apart from that, if we consider only the Kanakpura railway station, there are a few projects which we are already bidding, within Gujarat itself. So the order pipeline -- our pipeline has been very substantial availability of projects, which are going to come within next 1 year. So the bid pipeline won't be an issue. On next year, what we have been thinking is about the Ahmedabad railway station. I think we are going to bid somewhere in the month of September 9. And then October 9 or 10 is Delhi railway station. We'll be able to say something on that project.
Okay. So Delhi station is also the same INR 2,000 crore, INR 3,000 crore kind of a size?
I think it is INR 5,000 crore.
Okay. So then we will be bidding through the JV?
Yes, it will be in compulsory JV because we are not having an experience of bridges and there is a typical requirement of contracting promotion, which has to be a part of this project. So we are going to bid, both the projects as a JV because it's not earlier building, it is 60-40%, about 40% is the pass-through for the bridge and the [indiscernible] and the rest of thing is finishing and MEP.
Okay. So this Delhi bid is also by September, October, we will need to submit?
Yes, it has to end by October. Delhi should have end by October and Ahmedabad railway station should end by September first week, which is in line.
Okay. Hetal, ma'am, just a update -- need a data point on the balance sheet. I missed the retention money part. If you can repeat that and absolute inventory debtor and payable numbers?
Yes. Sure. Retention, if you see non-current amount is INR 110 crore, and the retention, current is INR 34 crore. And debtors are INR 450 crore.
INR 415 million?
Yes. 5-0. INR 450 crore. And creditors are -- creditors INR 396 crores.
Okay. And inventory?
Yes. And inventory INR 184 crore.
P. S., sir, last just a thing, we are increasing our borrowing limit from INR 1,500 crore to INR 3,000 crore. So is it for this station redevelopment? Only the non-fund base limit that we are trying to increase.
Yes. See, basically, currently, we are having INR 1,047 crores of limits, that comprises of most of the non-fund-based limits, only INR 140 crore is the fund-based limit. Now, we are planning to increase our bank guarantee limit. So that will be around INR 450 crores plus. So around INR 1,500 crores of borrowing we are planning to do.
Please understand, INR 3,000 crores -- it is not INR 3,000 crore. It is from INR 1,000 crores to INR 1,500 crores.
So the resolution what we have passed is the maximum limit. So on a higher side, we have kept it.
Okay. Resolution is on the higher side that we have kept.
[Operator Instructions] The next question is from the line of Arushi Shah from Sushil Finance.
Am I audible?
Yes.
Congratulations on the wonderful set of numbers. One thing is, I wanted to know that we are highly concentrated in Gujarat and UP. So what is the total addressable market size in Gujarat? I can just get an idea of how much more penetrated only in Gujarat? Or probably, are we looking at other states all over India as well?
See, it is not about that we are highly concentrated in UP and Gujarat. Gujarat, of course, will be higher than other states, but we are already -- we have already experience of operations in Karnataka, Rajasthan and New Delhi. So as and when the project opportunities are there -- I have been always telling that when there is a large size project and the project is something which is different and prequalifying categories are niche, the competition is going to be niche. So we bid for such types of project anywhere in -- anywhere out of Gujarat. But presently after completion of this Kashi Vishwanath, we got this large-size opportunity to work on medical college and hospitals in UP. So that is the reason that we are presently concentrating in UP. But we are -- in general, we are comfortable to work in almost all the states of Gujarat. But still it depends on what is the size of the project, what is the current order book is, let's say, if you're going to bid for projects outside Gujarat. So that way, it is nothing restriction on that we are limited to one state there. It is all about the opportunity and the competition.
So for Gujarat, how much would what we can bid for or how much would be the addressable construction as we can do on specialized or you have the expertise in?
See, again, I going to say that we are, of course, purely in EPC contracting firm. So it is not at all about what -- how we will be placed in future. But by the -- yes, it is almost 50-50, sometimes 50 is [indiscernible]. Last year our order book was almost from Gujarat itself. And Gujarat is the most urban state you must have heard. So opportunities are coming largely from Gujarat but we are still open to bid for other states. And presently, we can't plan because what are the projects which are going to come from other states can't be seen by a contacting firm. So as and when it is announced and if the opportunity is there, we would bid for that.
Right. Okay. And sir, my last question would be like an overall landscape of the construction industry. I just wanted to know your view on that, like, I mean, how much like given the government support and other proactive measures, I'm sure we are very well placed. So how does the construction landscape look to you going forward? Now maybe a midterm view would be nice.
The economical growth on India is growing a high presence there will be huge opportunities that is going to come in the next 3 years. As we see, there are lots of airports are going to come, lots of development from the government side is coming, lots of medical colleges and education institute are also coming. Now, presently we are thinking about Commonwealth Games and Olympics where Gujarat is going to bid. So probably, I see a lot of the future for construction companies to come in next 2 to 3 years. At the same time, CapEx side of the large groups of industry also, we have already heard a lot from Adani or a lot from Reliance and lot from Arcelor Mittal and this microchip [indiscernible]. These are the groups that are going to come with the huge investments in the near future. So I personally feel there will be huge opportunities for construction companies like us.
Okay. And sir, how is the precast facility currently doing? Like are we fully utilized? Or -- and what would be the peak revenue if so?
So presently, now we started the fully-fledged operation in last year and that I think we have done a project size of up to INR 80 crore. And this year, we are trying to complete it and we have a target of about INR 250 crore. And as an individual [ plan ], this can go up to INR 300 crores, but since we have already now expanded ourselves to go into infrastructure also where we are manufacturing builder, lots of bullet train to be supplied to L&T. So probably, that can be this business. I personally see there will be huge potential as and when this year also, there was a huge shortage of labor until July. So probably, we'll see that there will be good opportunities for us to come in the next future. So if we expand from here, we can grow up to INR 1,000 crore in near future after 3, 4 years.
Okay. And sir, precast, we do receive repeat orders from our plan?
Yes. Precast, as of now, we had 7 orders from -- what we do was into warehousing facilities, and they have already given us few more orders. So it is more like 1 person is having an experience of the precast that how time and quality you maintain and how time is still mostly 40% time of the person is said by doing precast. So probably, [indiscernible] the technology installed in his own facility, we will be tempted to go for future and repeat orders. And that experience, we are already having from [indiscernible] warehousing facilities who has been giving us this continuous order.
The next question is from the line of Ashish from JM Financial.
A few questions, sir. One, sir, when I'm looking at the debt number from what was said, INR 97 crores is long-term and short term is around INR 185 crores, right? So the INR 282-odd crore debt seems to be like a very steep jump from the March level of about INR 145 crores. So why would there should be such a sharp increase in 1 quarter, sir?
See, as I tell you that almost all the inventories have been done at the UP side, so there will be a little bit more investment in UP side as far as MAP is concerned. And things get converted into even only and only once it is installed at site. So that's the major reason where we have to put in money, so that at least overall time line is met because we were already delayed in last March, and so the most of the revenue will now come in next 6 months. So we are already on track and probably the investment is majorly on the inventory side of UP.
Okay. Sir, by the end of the year, where do you see this number broadly speaking?
Yes. I think it should be INR 100 crore, INR 180 crore, INR 200 crore be somewhere in the middle of about INR 10 crore.
Okay. You're saying around INR 200 crores by the end of the year?
Presently, it is INR 200 crore. It is more than INR 200 crore. So being in the range of INR 100 crore, INR 150 crore.
INR 100 crore, INR 150 crore by the end of the year. Okay. Sir, secondly, in terms of the 2 large projects in the pipeline. One is you updated about the Ahmedabad the station redevelopment. But apart from that, the Gems & Jewelry park in Navi Mumbai, which is around INR 2,500 crores. And also, we were looking at something for Central Vista. So any update on these 2 projects?
So Central Vista is I think what is the reason at that level, I am not aware of, but there is the subtle inquiry from Central Vista as of now. The projects which are going on, that's the only astonishing which is going on. So probably that futuristic announcement will be made on the tenders, but we are not aware when it will come. About Gems & Jewelry Park, yes, the tenders are open and we're still the second lowest. So probably it is likely that it will go to the lowest person.
Okay. Okay. So when is that finalization expected, sir?
Since we are second, we are not concluded --
You are second low, sorry, sorry. I missed that.
It is not concluded, but probably once they give the order to the lowest, we will come to know.
[Operator Instructions] The next question is from the line of Navid Virani from Bastian Research.
So I just needed one clarification regarding the limit. So if I understood correctly, the current level of limit is around INR 1,050 crores, out of which INR 120 crores is fund based?
Yes.
And we are planning to take it to INR 1,500 crores.
Yes.
In which the fund limit would be, sir?
INR 145 crores.
So it is almost 10% of the total exposure.
And in the announcement which we have made, we have kept this -- we have kept the room to take it up to INR 3,000 crore, as and when the need arises. Is that understanding correct?
Yes.
Yes.
The next question is from the line of Rushabh Shah from RBSA Investment Management.
Just had one question. PSP earlier, historically, we had bidded for projects where we -- there is limited competition. So just wanted to understand, has there been an increase in intensity of number of players bidding for the same project, which -- where the competition was really limited in the high-ticket projects, high ticket size?
No, I personally see that after completion of Surat Diamond Bourse, we still stand as if that we are able to qualify even beyond INR 2,500 crores size project, and there is no much competition. Maybe overall it's 5 players, maximum, depending on still the criteria, how it has been kept for the project and what is the deployment of the project. So probably also the intensity has not increased that there will be huge employee contribution beyond INR 2,500 crores. So it will be approximately 5 or 6 players.
The next question is from the line of Devang Patel from Sameeksha Capital.
You had mentioned bidding for airport and railway projects in Delhi of larger sizes. I wanted to understand what kind of partner you are looking at? Is it a domestic or an international partner? And what will be our scope in terms of work and in terms of equity participation?
See, as I said that these are 2 large railway stations, wherein there will be a separate road or beach that will be a separate road, which will touch directly to the concourse level. So that is more required like a bridge is -- what we do in a bridge. So those things will be in the scope of the contract or we have expected in doing breach. And rest of the think above Compass, which is going to be finishing part of the overall station, even you the platform level, there is a commission that even at the platform level, there will be a requirement of HVAC and electrical and fire. All these things will be done by the in situ contractor like us. Only the main structure, which is required to be done like bridge and concourse will be done by that player who's having our details. And yes, we are doing with the JV with local partner from India only.
So we have about 50% share of the work, if you are talking of INR 3,000 crores, I'm not sure what size...
Yes, it will be in the range of 50 bps.
And then can you talk about other large projects that are in the pipeline for early of large ticket sizes?
Large projects and the ticket size?
You mentioned a good pipeline of INR 6,000 crores, but this itself we are excluding this. And other than this, what are the other big projects in the pipeline?
One [ IT pass ] project of INR 400 crores which even will be standing from Pune last [Indiscernible] dam project, which we have already bidded is in the range of INR 350 crore plus. Central Vista project, which we have qualified which we are waiting for the prequalification is in the MP office. It was INR 1,350 crore. And museum for about INR 300 crores, which we are bidding.
Sir, I couldn't catch clearly. Central Vista project, this INR 1,250 crore project, did you mention that we are into in this?
No, no. It is in pre-qualification stage, seems like the last 9 months, they have not yet they announced who are qualified. And once they are qualified, they will be issuing the bid to bid CapEx. But as I said that the project has been a little bit at slowdown, the region of execution in the city become a little bit in terms of environment. So probably that will take a little time. But yes, we have bidded for the pre-qualification only.
Okay. Sir, I couldn't hear clearly. You were saying you were L2 in one of the projects?
That is the Gems & Jewelry Park in Mumbai.
Okay. Okay. Sir, is it possible to use our precast facility for project work in Mumbai? Or will the transport distance make it unviable?
The feasibility of this project, this plant, which I think that cost probability can be improved is help do 300 kilometers.
[Operator Instructions] The next question is from the line of Nikhil Kanodia from HDFC Securities.
Congratulations on your robust order book. Sir, I had 2 questions. Sir, in case of Ahmedabad and Delhi station redevelopment orders, who is the other JV partner?
We can't announce today who will be our JV partner.
Okay. Okay. Understood. And sir, in case of the Bhiwandi and Pandharpur project, so what would be the outstanding order book for those projects? And any update from the client or the court?
The orderbook which we already announced is -- excluding the Bhiwandi and Pandharpur order since March. So we have already executed these 2 orders from our outstanding order group. And what was your next -- the second question?
So that's the reason I was asking the outstanding like what would be the value of the order and the update that would be having from plant or the court?
See, we are not including any outstanding order book of these 2 projects, right? So in this INR 5,300 crores of order, we don't have this Pandharpur and Bhiwandi.
Okay. And any update that we have from the court?
[Technical Difficulty] Hearing will start from August. And the Pandharpur side, we have already applied in High Court, but the petition is still need to be revoked. So we are waiting for the arbitration to revoke. And at Bhiwandi, both the parties have submitted the claims, so the arbitrator -- hearing will start from -- arguments will start from August.
Okay. And sir, I missed your FY '24 guidance. So what -- like have you kept your guidance same? Or is there any change in the FY '24 revenue and margin guidance?
No, no. Presently, we would like to maintain the same.
The next question is from the line of Ritesh (sic) [ Rikesh ] Parikh from Rockstud Capital.
Sir, I just want to understand the order majorly incremental orders we are getting from the government side. So is there any slowdown in the private purchase?
No, as such, we did not show. We have already announced few orders from last year, last year March. So I said there is no -- nothing like that on the private order and little bit... But yes, large size projects are being announced majorly from the side.
Lastly, on the EBITDA margin side, this quarter, we had a quite a bit of order completion. So it was on the 13% side. But do you see any margin improvement happening, 11% to 13%, that band being improving?
No. As I always say, that it should be at the end of the quarter what are the projects which are getting into the stage of the construction. So we still have that guideline of between 11% and 13%. So ratably again, as few quarters back, last year, the March quarter, we had a margin over the 14% plus, that was majorly due to completion of some of the large projects. So as and when such of types or events come, there can be plus or minus 1%. But we see the to maintain claim of 11% to 13% to be.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, I just wanted to clarify, Dharoi Dam, the one project that we have bidded and still the outcome has not come, so that is a INR 300 crore project?
No, no, no, no. One order we have already received. See, there is about INR 1,200 crores of development, which is going in Dharoi. First segment we are already doing. Which -- the order got little bit delayed from the government side. But that is under execution. What I'm talking is of the Phase 2, so which is going to be -- we are going to bid by this weekend, and that is -- we announced just 1 month back only.
So this Phase 2 will be how much, INR 580-odd crore?
No, no, that update [Technical Difficulty] It is in the range of INR 350 crore.
Okay. Phase II will be INR 300 crore, INR 300 crore, INR 350 crore and Phase III will also have the same range?
In the same range, yes.
Okay. So total from INR 600 crores, INR 650 crores kind of a size that we can -- we are looking to build?
No, no. See, our total INR 1,200 crore investment is divided into 3 packages. First package, we have already received and we are working on the project. Second package is announced now, and we are bidding by end of this week. Third package may be announced maybe somewhere in the month of October, November. So it is Phase 1, 2 and 3, totaling to INR 1,200 crore.
Okay. Okay. Got it. Second, sir, on the precast, we mentioned in the press release, INR 20 crores, we have approved the CapEx. So with this, the capacity will remain the same 1 million square feet or this will further increase to 2 million or 3 million?
See, this is again as I said that other capacity you feel the same, but there can be some projects which are related to infrastructure and industry. So the share which we already expanded for infrastructure, it is ended now. On the structure side, it is 100%. And on the roofing side, it is 50% done. So as and when the such types of small expansions are required, they are based on the inquiry, we may go for expansion. Or some of the inquiries which may come up with later in the building side, so then the building problem and slab line, which we have a spare capacity of 1 more line, there can be the future addition of those lines in terms of machinery. So this is a probable figure I have given, which can be utilized. Presently, I'm not having any idea of how much we will be spending on work. But that depends on how the overall inquiry goes an and what level of inquiries we are getting we'll decided at that time.
Okay. Okay. And then in terms of the -- for full year CapEx, normally, we have a stand up 3% to 4% of revenues, so close to 70, 80 --
Yes, the projects they will be on, yes.
Okay. Got it. And lastly, Hetal ma'am, now the date has increased, and we are saying that it's by end of year, it will be INR 100 crores, INR 150 crores will reduce. But in terms of the interest cost from second quarter, will it inch up from INR 9-odd crores that this quarter we have?
Yes, it will be -- once the repayment is done, it will be reduced, interest cost will be reduced to that extent.
But at least second or maybe third quarter till we may see maybe a INR 11 crore or INR 12-odd crore, INR 10 crore kind of finance cost?
Yes, it can be less than this, actually. Currently, we are having INR 9 crores. So once the repayment is done, see whatever loans we have taken right now, so those will be mostly repaid between a year or so. So likewise means interest cost also will reduce to that extent.Yes. But bank guarantee charges also will be included in finance cost. So to that extent, again, if some large projects comes up, the finance cost may go up.
Shravan, the difference of INR 5 crore and INR 9 crore is majorly we have distributed between interest and the bank guarantee charges. It is not interest. Since the order book has gone high, so there is a financial charges because of bank guarantee also. So, yes, that is incremental in interest also, but it is both way, maybe 40, 50 or 60:40.
The next question is from the line of Vaibhav Shah from JM Financial Limited.
Sir, our number of INR 6,000 crores, so does it include the Ahmedabad station redevelopment project?
Yes.
The next question is from the line of Nikhil Kanodia from HDFC Securities.
Sir, on the precast revenues, sir, what is your revenue that we have booked in this quarter? And what is the guidance for FY '24 and '25?
Basically, we are not separating, segregating any precast revenue. Because if you see, our orders as sir has already said, the factory we are constructing. So those are composite orders. So we do field work and other work also in addition to providing precast. So --
Overall revenue is booked in the main book.
Main revenue stream only. So we can say it's backward integration and just like RMC, now we are using precasting some of the projects.
The next question is from the line of Ash Shah from Elara Capital.
The L&T pre-cast facility, there is no movement as yet in this quarter as well. So can you just throw some light on that?
L&T, yes, this new order facility is yet to be built up. Now supply will start. I think last month, only a small supply has already initiated.
Has the project started now?
Yes, after getting the order in January, I think we placed -- I think we got order last year, and we then gave the order for malls. So malls requirement was huge, and the malls are going to come from the out of country. And some of the malls we have made in Jaipur, Rajasthan. So probably now everything is in line and all the malls are in place. So from last year -- last month only we have started since that project.
Okay. And this INR 195 crores will be completed in this year itself or FY '24? Or there will be some spillover?
I think it has to be completed, but there can be some spillover for first quarter. I'm not exactly knowing the time line which has been given, but probably there should be some spillover in first quarter.
Also, I just missed out on the Ahmedabad railway station. Can you just quantify the amount for Ahmedabad railway station and Delhi railway station separately? What is the pipeline?
I think that Ahmedabad railway station is in the range of INR 2,600 crores and to be exact it [ INR 2,700 crore ].
And you were mentioning about something on the Palanpur project as well, Palanpur railway station.
No, no. It was Kalupur railway station, not Palanpur. So Kalupur is a part of Ahmedabad. So we call is Kalupur railway station.
The next question is from the line of Aditya Mehta from GK Capital.
So just wanted to know what is the order inflow target for FY '24?
We have given it more than INR 3,000 crores.
The next question is from the line of Navid Virani from Bastian Research.
Sir, last time around in the last quarter's conference call, we mentioned that there will be some spillover of FY '23, which will happen in Q1 and Q2 of this year. So what will be that portion, if you can quantify from the total revenue which we did this quarter?
You are talking about UP.
I'm talking about as a whole, so let's say, we did INR 510 crores worth of revenue this quarter. So how much you say...
Actually last March quarter, we fall short of about 10% of overall revenue guidance. And that we told that there will be a spillover of last quarter of March to be -- to be different in the first 2 quarters of '24. So that was the spillover. And in terms of overall revenue, how much spillover, I think we have never talked. It was probably on the UP projects, which was to be -- which needs to be done before March as there has been revenue spillover this year in the first and second quarter.
Next question is from the line of Arushi Shah from Sushil Finance.
All my questions been answered. Thank you.
Thank you.
Thank you. As there are no further questions from the participants, I will now hand over the conference over to the management for the closing comments.
Thank you. Thank you, everyone, for your continued support and interest on us. We hope that we have been able to address most of your queries. In case of further queries, you may reach out to our Investor Relations Advisor, E&Y, and they will connect with you offline. Thank you, again. Thank you, Bharanidhar, for hosting our call. Thank you, everyone. God bless you.
Thank you.
Thank you. On behalf of PSP Projects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.