Ladies and gentlemen, good day and welcome to the NCC Limited Q2 FY 2025 earnings conference call hosted by JM Financial. [Operator's Instructions]. I now hand the conference over to Mr. Vaibhav Shah from JM Financial. Thank you, and over to you, sir. Yeah, thank you, Darwin. On behalf of JM Financial, I welcome everybody to the Q2 FY25 earnings conference call of NCC Limited. We have from the management today: Shri R. S. Raju, Director of Projects; Sanjay Pusarla, Executive Vice President, Finance and Accounts; and Neerad Sharma, Head Strategy and Investor Relations. Now, I hand over the call to the management for opening remarks, and then we can have a Q&A session. Over to you, sir. Thank you. Thank you very much, Vaibhav. Good evening, everyone. At the very outset, I thank each of you for taking out time to attend this interactive meeting. I have with me my colleagues, Mr. R. S. Raju, Director of Projects, and our CFO, Mr. Sanjay Pusarla. Today, we have declared our results for the second quarter of the current financial year. Hope you had an opportunity to download and study the results and the investor presentation that we have uploaded on our website and shared with the stock exchanges. Before I begin the interactive meeting, I will read out the disclaimer. This presentation may contain forward-looking statements concerning NCC's future business prospects and business profitability, which are subject to a number of risks and uncertainties, and the actual results could materially differ from those in forward-looking statements. The risks and uncertainties related to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition, both domestic and international, economic growth in India, and ability to attract and retain highly skilled professionals, time and cost overruns on contracts, our ability to manage operations, government policies, and actions with respect to investments, fiscal deficits, regulations, geopolitical risks, interest, and other fiscal costs generally prevailing in the economy. The past performance of the company may not be indicative of the future performance of the company. This interaction is broadly divided in three parts. In the first part, I will talk about the brief business environment and the prospects of our company. In the second part, I will request our CFO to give a detailed presentation on the financial performance of the company. In the third part, we will attempt to answer all your questions and clarifications. We are seeing a very healthy pipeline of future prospects. As we speak, we have a prospective project pipeline of more than INR 210,000 crores. We are currently sitting an order book of INR 52,370 crores. I also take this opportunity to reiterate the guidance that we have shared with the market participants. The first guidance that we have shared with the street is order inflow of INR 20,000-22,000 crores, revenue growth of 15% upwards, and EBITDA margin of 9.5%-10% in the FY25. Now, I will touch upon very briefly on our important divisions. In our buildings and transportation division, we continue to see good traction and a healthy pipeline of projects. We are sitting on an order book of 19,486 crores in building and 11,151 crores, that is about 21% of our total order book in the transportation division. The third largest division that we have is our electrical division. In this division, we have an order book of 10,931 crores as of September end, which is about 21% of our order book. The fourth large division that we have in our company is our water division. It has an order book of 6,071 crores, which is about 12% of our total order book. The flagship scheme of the Government of India, Jal Jeevan Mission, that has been launched in partnership with the states, continues to be in full operation. This scheme has been planned with an outlay of INR 360,000 crores, and this scheme has been given a very healthy allocation of INR 70,163 crores for the current financial year by the Government of India. Now, I will hand over to my CFO, Mr. Sanjay Pusarla, to talk about the detailed financial performance of the company for the current financial year. Hand over to Mr. Pusarla. Thank you. Good evening to all of you. This is Sanjay Pusarla, CFO from NCC Limited. I'm pleased to announce the financial results of Q2 of financial year 2025. My announcement will be in the order of order book, revenue, profitability, debt movement, and some of the important balance sheet metrics. To start with, order book. Our order book stands at 52,370 crores as of the end of September 2024. You are aware the order book at the beginning of the year is at 57,536 crores, and orders received during the H1 is 5,168 crores, of which Q1 includes 408 crores and Q2 includes 4,760 crores. After execution of 10,334 crores of work during the first half of the year, the order book stands at 52,370 crores. Coming to the revenue, so we'll talk about the standalone. The budgeted turnover for the quarter is INR 4,857 crores, and again, we achieved a turnover of INR 4,445 crores, which is 92%. Again, six months, that is, ending September, we achieved a turnover of INR 9,158 crores as against INR 9,362 crores, which is almost 98%. When it comes to consolidated, the budgeted turnover for the quarter is INR 5,425 crores, and again, we achieved a turnover of INR 5,196 crores, which is 96%. Again, six months, that is, ending September 2024, we achieved a turnover of INR 10,724 crores as against the budgeted turnover of INR 10,545 crores, which is 102% of the budget. Next, coming to the profitability. At the standalone level, we achieved a gross margin of 15.15% for Q2, as against 11.70% of the corresponding quarter of the previous year. For H1 2025, we achieved a gross margin of 14.96%, as against 13.44% in H1 of the previous year. At the consolidated level, we achieved an EBITDA of 9% and PBT of 4.9%, and PAT of 3.6% in the current quarter Q2, as against EBITDA of 6.5% and PBT of 2.3%, and PAT of 1.6% of the corresponding quarter. The main reason for the reduction in the Q2 of FY25 compared to Q2 of FY24 is on account of lower turnover in our water project, UP, as explained by Mr. Neeraj before due to unprecedented rainfall. Lower turnover in one of the projects, Malad project in Maharashtra, due to the rains and also granting of approvals and delay in granting of permission for cutting the mangroves there, and also lower turnover in the smart meter projects. Coming to the debt movement, the debt at the beginning of the year stood at INR 1,005 crores, that is INR 1,005 crores, and net debt after cash and cash equivalents is INR 518.36 crores. At the end of Q1, it stood at INR 1,820 crores, and net debt at INR 1,679.56 crores. At the end of Q2, the same is standing at INR 1,732.70 crores, and net debt is INR 1,624.36 crores. There is a reduction in debt levels by INR 87.03 crores compared to the earlier quarter. The debt equity ratio stands at 0.25 at the end of Q2, as against 0.26 at the end of Q1. Coming to the working capital, working capital at the end of Q2 stands at INR 4,987 crores, which is 27% of the turnover, and in terms of working capital days, it is 87 days, and it is calculated after excluding cash and margin money deposits. Coming to the debtors outstanding at the end of Q2 has come down from INR 3,654 crores at the end of Q1 to INR 2,793 crores, and the number of days also has come down from 85 days to 65 days in the current quarter. The unbilled revenue stands at INR 5,220 crores, which is 29% of the revenue for Q2, as against INR 4,790 crores at Q1. The reason for increase is in UP projects where we have billed them about INR 400 crores in the next month, that is, October, and realized the money also. The mobilization advances stood at INR 2,096 crores, as against INR 2,417 crores in the previous quarter, showing a recovery of mobilization advance by the clients by INR 321 crores. This is also another reason for increase in our debt levels. It is standing at 11% of turnover, as against 13% of the previous quarter. Of these mobilization advances, 81% are interest-bearing, and the average interest rate comes to around 9.5%. Coming to the CapEx, we have incurred a CapEx of 143 crores in the current financial year up to the end of September 2024. So next, coming to the investor-related ratios, the ROA stands at 13.61, as against 14.04 at FY24 end. Return on net worth against EBITDA is 14.02, as against 13.88. Return on net worth against PAT is 10.44, as against 9.62. EPS stands at Rs 5.80 as at the end of Q2 for March, that is, year-end, it is Rs 10.10. Equity per share is at 112, as against Rs 108.50 at the financial year 2024 end. With this, I conclude my presentation on the financials for the quarter two. Thank you. Back to Mr. Neeraj. Now, we will take any questions, clarifications that you might have. Thank you very much. We will now begin the question and answer session. [Operator's Instructions]. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Thank you, sir. Just to recheck, you are maintaining the previous revenue and EBITDA margin guidance, I understand. So just to recheck on that, so if I look at 15% revenue growth, we need a 17% plus kind of revenue growth in the second half, and in terms of the margin level, we need at least 9.7% to 10% kind of EBITDA margin in the second half. A re we confident that we will be able to do that? Sir, I answer? Yeah. Okay. Hello. As of now the guidance, what we given is the beginning of the year, and we are still confident to achieve the guidance what we given. So as order book guidance is concerned, we are given about 20,000-22,000. So though the order book in the first half year is lower than what we supposed to do, but the kind of the pipeline of the orders giving a good confidence to us to achieve easily the 20-22,000 crores, even there is a good visibility to surpass the limit what we given for the order booking. As far as invoice booking is concerned, as in the first half year, we achieved 13% that you know already we explained in this, particularly in the second quarter because of the rains and floods we couldn't achieve because of the difficulties happened because of the heavy rains in the season. In the second half, so whatever 15% is there, we easily achieve, but the 2% whatever is there now, the backlog, that also we are confident to achieve that one. And ultimately, we are at this moment, we are confident to achieve 15% guidance whatever given for the invoice booking. As far as EBITDA margins are concerned, as we given 9.5% bottom lower band, and in the first half year, we achieved about 9.2% in EBITDA. So in the second half, we are sure to achieve 9.5% lower band, but whatever backlog is there for the first half year, the 0.3, now is to be seen that how far we are able to achieve 9.8 or 9.9 to make it as 9.5. But we are at this moment, we are going to achieve 9.5% in the second half year. Okay. Got it. Just to clarify, sir, in terms of the order inflow, including the October one is, INR 8,660 odd, and L1 is how much, sir R.S? INR 8,700 odd crores? The total L1 value would be, as of September end, would be INR 9,200 crores. Let us say that close to more than INR 9,000 crores. More than INR 9,000 crores. Okay. Shravanji, if I may add one point, you talked about the submissions that we have made for the month of October. If we really add these two numbers, we have already achieved about 41% of the lower band. If you really include the announcement that we have made for the month of October, the total order book is 8,256, which is about 41% of the lower band. So we are on the journey, and I think we don't see any reason to revise the order inflow guidance that we have shared with the trade. Okay. Got it. Sir, just a couple of data points just to get it from you. One is how much is retention money and loans and advances and the investment in subsidiaries and associates. So exposure to associates and subsidiaries is how much? Investments, there is no change from the previous quarter. It is now standing at 1,034 crores, against 1,033 of the previous quarter. And the loans now standing at 381 crores, as against 361 crores of the previous quarter, about 20 crores increase. Inventories, 1,469 crores, against 1,304. Trade receivables. Y eah, sir, I have that. I need the retention money. Okay. Retention money, we have about INR 1,583 crores, against INR 1,532. Got it. And the date. It is quarter two and Q1 and Q2? What else you want? The debt level previously we mentioned, by end of the year, we will be reaching to 500-odd crore versus 1,730-odd crore. That stands remains the same. At this moment, that stands, there is no change on that one Net number. [Inaudible] INR 500 crore. As you are aware, generally, the collection curve good in the fourth quarter, and this is what makes us believe that we should be able to hit that number. Okay. Okay. Thank you and all the best, sir. Thank you, sir. Thank you. Thank you. The next question is from the line of Janak Mehta from LKP Securities. Please go ahead. Jinay Mehta, your line has been unmuted. You may proceed with your question. As there's no response from the current participant, we will move to the next question, which will be from the line of Parth Thakkar from JM Financial. Hi. Am I audible? Yes, you're audible, sir. Yeah. Thank you for this opportunity. My first question is, what are the outstanding receivables from AP and how much recoveries are we expecting in 2H? AP projects. So for the AP projects are concerned, there are two categories. One is capacity projects and the other category is running projects. So we have received nearly INR 220 crores in the last two months from the AP government towards the running projects. As far as capacity projects are concerned, the outstanding is about approximately INR 150 crores is there that also we expect to receive. There is a good movement and the discussion is going on with the client. And before March of this fiscal, we expect to receive that amount. So as far as any other points you have on the AP projects? No, Now, my other question is, can you help me understand what is the pending real estate projects on hand that is holding very well? Pending amount of. [Crosstalk] If you could repeat your question, please. You are not fully audible. If you could please repeat your question, sir? I think you are talking about the Vizag real estate deal? [Crosstalk] Yes. W hat remains to be received from them, we have received most of the payment. What remains to be received is about INR 33 crores. This is what we had disclosed in the last quarter. But already received is about INR 23 crores. What remains to be received from them is, let us say, the negligible amount of INR 10 crores. And with that receipt, it is also important to understand that we have received the full payment as far as the equity portion of that project is concerned Thank you, sir. Those are my questions. Thank you. There's INR 15 crores from the loan given to them. That loan is an interest-bearing loan. They started paying the loan amount, loan amount. Since there is some offers, some sales are happening out of that, the confirmation of what they received, they started paying the loan. About INR 15 crores we received in the last month. Okay. Thank you, sir. Those were my questions. Thank you. Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. We have the next question from the line of Prithvi Raj from Unifi Capital. Please go ahead. Yeah. Hi. Could you give some color on in which geographies are you seeing higher projects that are being divided? Is it central government? Is it state government? Can you throw some color on what kind of projects are you getting? Are we getting? Mr. Prithviraj, are you asking about the projects we are getting or correct? Yeah. That's right. The projects which are in the pipeline and which are being rewarded now? See, primarily, we are getting projects. We have shared one slide. I would encourage you to download and see the slide. But we have received few projects from the state of Maharashtra. We have also received few Jal Jeevan Mission projects. Going forward, we expect a very heavy pipeline of projects, more than 2 lakh crores to be exact, 2 lakh, 2.3 lakh crore pipeline of projects to come up for bidding. Primarily, it will come for four divisions: building, transportation, water, and electrical T&D. And we might get few projects in the irrigation and mining as well. Got it. And then one specific question on AP. Are you seeing any traction there when you're having conversations with the state government? We are hopeful. They have initiated the whole process, and we have been given to understand that the previous project they are planning to close, and they will start the process of award soon. So as per the information that has been made available to us, we should be able to see concrete action by Q3 or Q4 of the current financial year. Thank you, That's all for me. Thank you. Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Yes, sir. Am I audible? Yes, yes. Audible, Mr. Parikshit. Sir, first question is on the prospect pipeline. So you said that 2 trillion, almost 2 lakh crores for this, I understand, for the next six months, right? Yeah, but maybe a few states difficult to predict subject to the elections. You are aware that elections have been announced in two of the key states. But yes, overall, in these six months, or this could also spill to nine months also, depending on the new government that comes to the power, their priorities, their preferences. Y ou said that you already got the financial year till date about INR 8,256 crores, and you are sitting L1 at INR 9,200. So approximately, you have 17,000 crores plus kind of projects already in that sitting, right? That's right. Yeah. So balance 2 trillion when you are bidding, so typically, when you look at your historical bidding ratios, so what kind of conversion have you seen? For the rest of the year, when you are targeting, so 20-22 thousand crores, do you think there's a decent possibility of this number exceeding like 30,000 crores of inflows given that you're talking about a very large number of 2 trillion for the rest of the year? Yeah. Two questions. First, there is no fixed percentage. It really depends on the lumpiness of the contract. Generally, this number would vary for 10%-15%, anywhere in that range. It really depends on the lumpiness of the contract. What I essentially mean by that is, let us say that there are a few very large projects, 25,000 crores we have seen, very big projects like Bullet Train. So big packages. If we win or lose, this will change the percentage drastically. So this is the range that we have seen in the past. So 10% itself will mean around 20,000. So that means, I mean, are you targeting almost another 20,000 crores of inflows for the rest of the year? But we are not very sure whether that will really get converted into contract or not. You have seen that there is a delay. There is a timeline between L1 and the formal award of the contract, receipt of the LOA. So it is really difficult to predict a timeline. This is not something that is really in our span of control. This is a call that our client has to take. We have seen in the past that the L1 announcement is made, and it takes a substantial amount of time to receive the LOA. So that is the reason we want to be a bit on the safer side. J ust on this advances, loans, now you said equity portion has come in for that AP project. Now, how much is, sorry, I could not get, what is the total quantum of loans which were there and how much we have received? And what is the timeline for the balance to come in? I think the loan is close to INR 477 crores, which is expected to be paid out in the next two years. We have just received the first the Rs. 15 crores. No. It is 380 plus another 64, INR 384 crores, including the interest. That is outstanding. And we have already received around INR 15 crores, and it is expected that we will receive the balance money also in the next couple of years. As you said, Raju, as said before, there is a traction going on there, and now the sale is also happening, and we are expecting that the market will improve there because it is near to the airport, which is coming up in Visakhapatnam. So likely that these sales will happen, and we also have an understanding with them whatever sale that happens that they need to share the money with us. [Crosstalk] Yeah. There is an escrow mechanism in place. Whatever sales happen, will go to the escrow account, and we will get paid. The time frame is two years, two to three years. So 384 is right now the current outstanding, right, after you have received the 15 crores? 380. Okay. After receiving the INR 15 crores, which you spoke about. After that, we received INR 15 crores. That means INR 365 is outstanding. [Crosstalk] Okay. Okay. Sir, just on the building segment, so just only on the building segment, if you can help us understand how much is it all the government projects or do you also have some private projects, private residential projects in that? There are some projects from the private sector as well. There are some data centers from one of the leading power producers. We have some contracts in the building division from the private sector as well. You are not looking at adding more projects on the private sector because given that we have a strong presence in the building segment and there is a shortage of good quality contractors in the private real estate, which is not doing well. Do you think there is an opportunity for us to again look at that segment and add incremental orders? We are always open to look at the private sector contracts in the building space. It depends on what kind of projects are coming, what is the value of the projects, what is the location of the project, who is the project proponent. Depending on that, we do a thorough risk assessment and then decide whether to bid or not. Okay. But after talks with developers, leading developers like Tier 1 developers, I mean, are they considering you for their projects like residential private residential? Yes. You are right about our participation in the private sector, and we are internally taken not to participate in the private sector, only in exceptional cases where the client is good, where the business relationship is there. So only in exceptional cases, after evaluating thoroughly about the clients or private clients' performance and payments, then only we are entering. That's why the order book is also not much. It is hardly 2% to 3% of the total order book. Okay. J ust one more question. I mean, we have a very strong balance sheet now. You said with some claims we received some money. We are receiving the real estate monetization money. So we're talking about INR 500 crores of debt by the CRM. But when I look at the order inflows, I mean, you talk about very robust prospect pipeline of INR 2 trillion. You've already got 17,000. And potentially, if your conversion at the lower end happens, you are looking at another 20,000 crores for the rest of the year, even if it sits in L1. So in the past, we have had the best year in order inflow was about 27,000. We have been doing 25 to 27 for some time. But do you think now the time has come given the balance sheet is strong that now this can be really taken up because we are a very diversified player? And can this number now start going up much higher? If we are able to convert this year, it could be potentially close to about 35,000-40,000 crores of inflows, even if it sits in L1. But do you think you have that scale and capacity now to execute that kind of scale? Yes. You are right on that point of view. And in the same similar line, also the management is working to expand its business. So at the same time, already in the last two, three years, the company increased its turnover. You will see in this average ratio, the compounding average ratio of the last three years invoice about 35% is there. So we have grown to a particular level. From year again growing to that level, we have to consolidate the business and strengthen all the departments, the processes going on. And also one way also the management is looking to expand, and there is also a chance to even book beyond 20,000, 25,000, 30,000 orders also. In the same market, also opportunity potential is there. Both the ways we are looking that one. So it's not that only we confine to INR 20,000 or 22,000. Th at is the guidance actually that we said. We are strongly confident that we will be able to achieve the minimum guidance. And I think Mr. Neeraj earlier spoke about some bullet train projects. So which is this 25,000 crore project in that pipeline? And if you can name a few large projects in that 2 trillion pipeline, which you spoke about. No, P arikshit, I did not mean that. What I was trying to do was to explain to you that this percentage could vary widely. There is no project line of the Bullet Train of INR 25,000 crore on the horizon. It was in the past. Yeah, yeah. That is what I was wondering when you spoke of. But this INR 2 trillion, what are the large opportunities? I mean, which are the larger projects which have come up for bidding in your pipeline? The projects I couldn't identify, but I will talk about the sectors. For example, the metro projects. In all the length and breadth of the country, there are metro projects coming up. There are also plans to lay new railway lines. So these kind of projects. There are projects planned in the water space. RDSS, a lot of projects are expected to come up for transmission and distribution. So these are the verticals that have most of the projects in the pipeline. These are not identified projects, but.. We request you to please rejoin the queue if you have follow-up questions. Thank you. Sure. The next question is from the line of Prem Khurana from Anand Rathi Shares & Stock Brokers. Please go ahead. Thank you for taking my question, sir. Sir, I had two questions. One was, I mean, would you be able to share some more on this L1 pipeline that you have almost around INR 9,000 crore, which all segments would be? What does it include? The BharatNet Phase 3 awards as well? Or do you have anything to say? I mean, I'll clarify this. The first question, Mr. Khurana, is as a matter of policy, we do not really talk about the L1 project except to share the value. We do not know by what time these L1s are going to get converted into LOAs. So we just talk about because you were asking questions, so we have quoted a number. But yes, these projects that you just talked about is Bharat broadband. We also got to know about these L1 projects. So unless and until we receive a formal communication from the client, we do not really wish to announce that. Sure. D oes that mean you're saying that this 9,000 would not include any of these, I mean, the news that has been there in the market? Because you yet to receive any communication, it is still not a part of this? No, no. L1, I said, I mean, we don't share the details of all the projects, but it's part of the total value that I just and I said this is upwards of INR 9,000 crore. Okay. Sure. If you just to understand the thought. This BharatNet, we understand that some packages have still not been opened. The client will decide which one to award, when to award. So this is something that is expected to take some time. Sure. If you just want to understand the thought process, I mean, we recently picked up these smart metering orders wherein there will be a significant amount of bought-out component. And I've been assuming you will get to have these BharatNet orders as well, Bharat broadband. There again, I mean, there will be optical fiber that you would have to source from someone else. So I mean, has there been any change in the thought process wherein we are going for projects wherein there is a significant portion which is in the form of bought-out components? Or is it that the size is so favorable that you can't ignore these sort of opportunities? These are really large opportunities. And otherwise, also in a few of the projects that we execute, other than these two new areas, there is a significant part of the bought-out items. So we have been executing those kind of projects in the past, and we have the expertise, and these are the emerging areas. So why not? Whenever a big opportunity comes up in front of us, it is better to evaluate those opportunities and not to decide not to participate. So that is the reason we are always open to look at these kind of opportunities. Sure. And sir, given the sort of size that these sort of projects tend to have and I mean, assuming there will be competition to count, at least in terms of the number of participants that would be able to qualify would be on a lower side, fair to assume you would try to kind of get slightly margins which would be slightly better than what we generally tend to do given the sort of size that these projects have on offer? Mr. Khurana, could you repeat your voice? He's not very clear. Audible. Is it better now? There is a lot of echo. So not able to hear you clearly. Is it better now, sir? Yeah. Please, sir. No, sir. I was wondering, I mean, given the sort of size that we are targeting these days, right, in terms of the project sizes, and given these are fairly, fairly large wherein you won't get to have the sort of competition that you would get to have with smaller orders, fair to assume you are targeting higher margins with these opportunities than what we generally tend to deliver in terms of average numbers? It is difficult, Mr. Khurana, to really predict a margin at this point of time. As you rightly highlighted, these are the new areas, and we have backed these projects almost for the first time. So there is going to be a learning curve, and it is premature really to talk about the potential margin that we will really make on these projects. Let the projects move forward. Let us execute 30%-40% of the project. I think that would be the right time to talk about the margin. Otherwise, this would be a little premature to commit a number. Sure. And just one last, if I may, please, I mean, would you be able to share status on the GMLR project? Yeah. As far as the GMLR project is concerned, we have already placed the orders for the TBM machines and both the partners. And for clearance, we are waiting for the clearance. There was a change in the location, and there is a likelihood that the tunnel length also will get increased. So that is the reason we are waiting for the permission from BMC. It is expected to come in maybe the third quarter end. So once it comes, then the project will completely take off. Sure. Thank you. And all the very best for the future. Thank you so much. Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead. Thank you, sir. Thanks for the opportunity. I had a specific question regarding the smart metering project that we are doing, the two projects. So can you tell us about the experience as in how is the execution going on and when should we expect to complete? Have we completed a part of the project wherein we have already started receiving the annuities and everything? See, firstly, as you are aware, we have backed three projects. Two projects are from the state of Maharashtra. The order value of these two projects is close to INR 5,700 crore, and the third project that we have backed is from the state of Bihar. The value would be about INR 2,300 crore order value. As we have shared in the last conversation with you, we have started the trials for the Bihar state. We have already installed some meters. A couple of million meters have already been installed in the state of Bihar. Maharashtra, we have been asked to go a bit slow. The government has decided to defer these projects for a few months, and as you are aware, the election has already been announced in the state of Maharashtra. W e will wait for a couple of months' time, let the new government come to the power, and then we are hopeful that the execution would start. But to answer your question specifically, this project, we have been asked to go slow. Maharashtra project. Bihar, we are making good progress. Your voice is breaking. Nikhil, your voice is not clear. Hello? Yes. Nikhil, go ahead, please. Yeah. I wanted to ask about you mentioned that you have commissioned a couple of million of smart meters. So have we started receiving annuities on those? No, W e have not received the annuity. As per the contract, we have to demonstrate the successful connectivity for this sample size of the project, which is about 5%, 5-odd%. So once we install, it is not about the installation of the meters only. There is a network connectivity. These meters are expected to work like a mobile phone, either on RF radio frequency or mobile network. Then we have to connect this with the local server that is going to get connected to the billing server of the DISCOMs. So the annuity hasn't started. Once the sample testing is done, then we will receive the green signal from the client to start rolling out the project for the rest of the households. Then this cycle would start. As we speak, this hasn't started. One small correction. It was not 2 million. It was 2 lakhs. [Inaudible] Yeah. Two lakhs. Yeah. One to two lakhs. It's not million. So that's the reason you are asking whether annuity has started. Okay? Right. Understood. Sir, and just a final question regarding, sir, there is a lot of opportunities coming out in hello? Yes. Go ahead. Yeah. There is a lot of opportunities coming out in the renewable sector, especially in the batch segment and as well as solar EPCs. So are we looking to participate in those? Currently, we are studying the sector. We are not participating currently in these bids but we will evaluate and decide at an appropriate point of time. Sure. Thank you and all the very best. Thank you. Thank you. The next question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for the opportunity. First is on, I think you mentioned investments in subsidiary and loans given totally to roughly INR 1,400-odd crores. Is it possible to be broad headline subsidiary with investment? [Inaudible] So the investments and loans together, INR 3,500 crores. Out of that, Urban is INR 229 crores. And NCC IHL is INR 559 crores. And NCC IHMPL, that is Mauritius, it is INR 223 crores. And Oman, it is INR 57 crores. Vizag Urban is INR 416 crores. And extra the other things. Right. So in the smart metering one, how much? Still, we have not invested anything. We have invested barely INR 10 crores in that. And once the financial closure is completed and the project takes off, it will be done. And as you know, that one smart meter project is within NCC itself. And the two other projects are with the SPVs. Okay. So that two one, there's a Maharashtra one, which you mentioned. T he two in subsidiary are Maharashtra one. Both are in Maharashtra. Yes. That is the requirement as per the tender events. Right. On this order book, sir, the Consol minus standalone order book that we if we do, then the difference is coming from the Pachwara or is there anything else also? Majority of the part is from Pachwara. One small part from the smart meters. Okay. Okay. Got it. Got it. Got it. And one maybe last question. We request you to please rejoin the queue for follow-up questions. Thank you. The next question is from the line of Priyesh Babariya from Mahindra Manulife Mutual Fund. Please go ahead. Hi sir. Good evening. Just a similar question to what Priyesh was asking. Let's say if we look at the pipeline of around 2.1 lakh crores that you mentioned, assuming this sort of projects could be large projects. And also, we are looking out to bid for the large projects, and especially the projects wherein the bought-out components will be kind of higher. So what sort of margin profile are we actually looking at or what sort of trajectory do you see, let's say, in the next two to three years that after the execution of these kinds of projects where our value addition for us will be less? This question has already been answered. I have offered a detailed answer to this question. So anyway, so to reiterate, as you highlighted, some of these segments are new segments, and it is really premature to talk about the possible margins. In these pipelines, the projects would come up for bidding. A lot of people would bid. We would be successful in some bids. Some bids will not be successful. Then that would be we will start the execution of the projects. Then that would be the realistic time to talk about the margin that we will really end up with. It is premature to talk about the margin that we will make on these new segments, new projects. Okay. Thank you for answering this question, and another thing is that it would be really difficult to actually achieve a margin beyond 10% or so considering these projects will be very large. Sir, we have already shared the margin guidance with you, and we do not wish to revise that. The guideline, the margin that we have shared with the state is a beta margin of 9.5%-10%, and we continue to stick with the same number. Maybe we might hit at the lower end of the band as things stand today, but we have to wait and watch. Sure. Thank you so much. That's all from me. Thank you. Thanks. Thank you. The next question is from the line of Vaibhav Sha h from JM Financial. Please go ahead. Yeah. Hi, sir. Sir, out of our current standalone order book as of September, what would be the executable portion? Ballpark number would do. The Order Book standing for the standalone as of September is INR 48,027 crores. Okay? And out of this, generally, what happens is that 20%-30% of this is executable generally. So if you take 30% also, 12% is executable in the current year. What I meant was how much is currently under execution? What is the value for which execution is yet to start? Yet to start, there is nothing right now because the project regarding only the smart meters where the EPC contract was there. There was a hold a little bit in the case of Maharashtra, but they are going ahead. As far as the Malad is concerned, I have explained to you that there is a Supreme Court order to restart the project, and we have restarted the project. The landfilling, everything is over. The tree cutting is happening. We are waiting for some permissions when that comes. Due to the rains also in Mumbai region, the progress was also not as expected. In the coming quarter, we are expecting a good progress. As far as the other projects like GMLR, we said very clearly explained before that because of changing the alignment or changing the location, we are waiting for the approvals from the BMC. When that comes in, then that project also will take off. Otherwise, all other projects are going on, running projects. Secondly, what would be our order book of JJM projects from UP as of September? As of September, one second. JJM, Jal Jeevan Mission, so as of the end of September, it was 5,466. Really? Yeah. As of the end of September, it's INR 5,467 crores. So we indicated that we were targeting to complete the entire book by March 2025. So what would be a revised target for these now? Like this. As we explained, the shock fall in the turnover in the current quarter is also because of the unprecedented rains in UP and also the elections and all. Now we are expecting that the majority of the work will be completed by March 25, and maybe a fraction of work will be left over. It will be done before June 25. That is the timeline. Okay, and so lastly, when do we expect to receive the LOAs for the MSRDC two packages? We are waiting for the government to come in. And because of the election code, they are not able to do that. Once the elections are over, it's likely can happen. Okay. In the previous call, we had mentioned that the outstanding receivables from AP, overall, the total number was somewhere close to INR 550 crores. So is the number still the similar? We received around INR 200 crores in AP. We received the money from AP in the split of AIIB project and ADB project and also APMSIDC project. What are all projects which are running other than capital city project? We have received the money now. The money flow started. So only 150 is pending from the capital city and entire running projects funding has been received? No. One second. I'll let you know that. See, there are two parts. As my colleague Mr. Raju has already explained, from the old project that is AP capital city, we have to receive about INR 150 crores. Other than that, there are running projects in which we have already received about INR 220 crores. So it's a running project. What it essentially means is every month we will raise the bill, we will do the work, and the client will pay. It's a cycle. Okay. So what are the current outstanding for the running projects? Total outstanding, including the running projects and the AP capital city, is INR 450 crores. Okay. Okay. Thank you, sir. Those are my questions. Thank you. Thank you. The next question is from the line of Ankita Shah from Elara Capital. Please go ahead. Hi, Sir, out of the total inflow that is received in this year, including the L1, how much portion of projects would be from the state of Maharashtra? The share of projects in Maharashtra is out of the total order book somewhere around. Not order book, sir. Inflows. Out of these? Just Ankita, hold for a moment. Yes, sir. 42% from Maharashtra, 23% from Bihar, 14% from Gujarat, total 516. 42% of this total number? Of inflows, yes, sir. If we include the total order book, about 38% is from the state of Maharashtra. That I've seen in the presentation. 42% of the inflows that are already announced in this first half of the year is 42% from Maharashtra. [Crosstalk] Sorry? That amounts to INR 2,150 crores. 2,150. Plus L1 also, there will be some orders from Maharashtra? That is a different location that is not going. We have not included. We don't really, madam, we really don't talk about the L1 till the time we receive the LOA. So we really don't take that into account until that gets converted into LOA. Got it. So this INR 2,150 crores doesn't include any L1 orders. Only order inflow. Yes. That's right. And sir, you talked about a reduction in debt in the second half of the year to INR 500 crores. So with this, how much would the interest outgoing P&L be reduced to? Last year, we reported INR 595 crores as interest expenses. How much will this reduce to for FY 2025? As it stands today, Madam, if you see that the debt levels are almost similar for quarter one end and quarter two end. So the problem is only collections. So if the expected collections are there, okay, then definitely the debt level will come down. Maybe it may be by INR 500 crores, it may come down. So it will be the same range? It will be in the same range as at the end of the last year. You are saying interest expense will be same as last year? Interest expense, if you ask me if the percentage in fact, if we compare for the last year and current year for the half year, it was exactly the same number. It was coming to 3.12%. In fact, it is a reduction, 3.12% in the last year To 3.99%. and 2.99% in the current year. That's under finance cost of netting of the interest income. If you talk about only on the loans, that is also like 0.88% last year, and that has come down to 0.86%. The main reduction will happen in the second half of the year, Ankita. What is the expectation of interest cost reduction in the second half of the year? It will be on the same line, Madam. Yeah. So it's expected that we'll have the same line, maybe a few points here and there. Yeah. Gotcha. Okay. Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Namaskar sir, and thank you for the opportunity. I'm audible, sir? Yes, Saket, you are audible. Yeah. Sir, just to take the point forward regarding the finance, just a second, sir. My voice is echoing, I think. Hello. . Yes, Saket. Sir, when we look at our employee cost and the finance cost, Q on Q basis, that has gone up. So what explains this increase in employee benefit expenses from INR 182 crore to INR 196 crore? Two things in this. The increase is on account of one is on the salary increase, which is about 8%, and on account of the count of employees increase. The number of employees also increased. That is about 2.5%. So considering that, that increase is there. About the finance cost also, sir, although you mentioned that as a percentage of turnover it has reduced, but on absolute number, it has gone up. Q on Q, although the turnover on consolidated level is lower. It used to be the immediate quarter. Immediate quarter, it was INR 155 crores. The current quarter at the consolidated level is INR 166 crores. Yes, sir. That is my question. What explains this increase, sir? This increase on account of the excess utilization of bank guarantees and letters of credit. Okay. So for a year as a whole, sir. Sanket ji, we request you to please rejoin the queue for follow-up questions. I will not... Thank you. The next question is from the line of Shouvik Chakraborty from Dolat Capital. Please go ahead. Hi, sir. Sir, can you just mention the order book for the JJM projects in quarter two? I missed that number. The revenue for the JJM project in the Q2? 1,100 crores. The revenue for the JJM project in Q2 is INR 1,100. Q2. Okay. It's about INR 1,100 crores. 1,100. Okay. And the pending execution, how much does it stand at? Like 5,000. 5,460 crores. Okay. Got it, sir. Thank you. That's all, sir. Thank you. Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Mr. Vaibhav Shah for closing comments. Over to you, sir. I just have one question from my end. Sir, we had mentioned that the order book for JJM was around INR 6,000 crores as of March 2024. Now it is 5,500. So how do we explain the execution of INR 1,100 crores in Q2? [Inaudible] Yes, so I guess to give you a clarification, the order book which was received by us is around INR 17,000 crores, and the work executed till date, that is end of 30th September, is INR 11,137 crores, and the balance order book as at the end of September is INR 5,467 crores, so if there are some other numbers which we have told earlier, please, they stand corrected now. What was the turnover in the first half? In the first half, it is INR 2,000. The first half. INR 2,332 crores. The quarter one, it is 1,212, and the quarter two, it is 1,120 crores. Sir, what was the order book as of March 24? Yeah. It was INR 7,700 crores. Okay. Okay. Thank you, sir. Sir, thanks a lot for giving us the opportunity to host the call. Sir, any closing remarks from your end? Neither. Thank you very much for participating in the interactive meeting that we have had. Should you have any more questions, you are free to get in touch with us. We would be very happy to answer any questions that you might have subsequently. Goodbye. Thank you very much. Thank you. On behalf of JM Financial, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.