Ladies and gentlemen, good day and welcome to the Q3 FY 2025 Earnings Conference Call of Ahluwalia Contracts (India) Limited, hosted by Ambit Capital. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Ms. Margaret Mishra from Ambit Capital. Thank you, and over to you, ma'am. Good afternoon. On behalf of Ambit Capital, I thank the management of Ahluwalia Contracts (India) Limited for the opportunity to host your Q3 FY 2025 Earnings Call. We have the following members of management with us today: Mr. Shobhit Uppal, Deputy Managing Director, Mr. Vikas Ahluwalia, Director, and Mr. Satbeer Singh, CFO. I will now hand over the call to the management, Mr. Shobhit Uppal, Deputy Managing Director, to walk us through the quarter. Thank you all, and over to you, sir. Thank you, Margaret. Good evening, everybody. Ahluwalia Contracts (India) Limited, an EPC company, has announced the financial results for Q3 FY 2025. During Q3 FY 2025, the company has achieved a turnover of INR 951.95 crore and a PAT of INR 49.39 crore in comparison to a turnover of INR 1026.47 crore and a PAT of INR 70.66 crore during Q3 FY 2024. The company has registered a negative growth of 7.26% and 30.10% in turnover and PAT, respectively, during Q3 FY 2025 in comparison to the corresponding quarter, Q3 FY 2024. EPS of the company for Q3 FY 2025 is INR 7.37, as compared to INR 10.55 in Q3 FY 2024. During Q3 FY 2025, the company's EBITDA margin is 8.86%, as compared to 10.90%, and PAT margin of 5.11%, as compared to 6.82% in the corresponding period of the last financial year. During the nine months of FY 2025, the company has achieved a turnover of INR 2882.79 crore and a PAT of 118.35 crore, in comparison to a turnover of 2691.64 crore and a PAT of 175.69 crore during the corresponding nine months of FY 2024. EPS of the company for nine months of FY 2025 is INR 17.67, as compared to INR 26.23 during the nine months of FY 2024. During nine months of FY 2025, the company's EBITDA margin is 7.57%, as compared to 10.56%, and PAT margin of 4.05%, as compared to 6.47% in the corresponding period. Net order book of the company as of 31/12/2024 is 16,258.44 crore to be executed in the next three years. Total order inflow during FY 2025 is 7794.37 crore. We are ready to take questions now. Thank you. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Thank you. Hi, sir. Hi, Shravan. So, yeah, sir, a couple of questions. So obviously, first, on the guidance front, so nine months, we have done 7.1% revenue growth. So we were looking at a 15% kind of a number for this year. So how one can look at the full year or maybe the Q4, if you can help us, how one can look at the Q4 growth? And also, at the same time, for next financial year, how one can look at because we were looking at 20%, can we now start looking at 25% kind of a number? Shravan, while the order book continues to be very healthy, as far as this quarter and this financial year is concerned, we've been hit, along with our other peers, by the NGT bans in Delhi. 33% of our order book now comes from the NCR region. What I had mentioned in my last call also that we had expected that the NGT bans would hit us, but we had not expected that they would hit us so badly. That is the reason for sort of degrowth. I had said that I had given a guidance of about 10% growth. We should be around that. Around, we would be about 8.5%, 9%. Q4 is always the best quarter in terms of performance. As far as the guidance for the next year is concerned, it would be about 15%. Sir, I understand that this quarter or this year is a low number, but next year, I think last time we have talked about close to 24%, and now we are seeing 15%. So are we seeing a slowdown in the execution, or the big projects still have not picked up as expected? In fact, we feel and I'm reiterating what I had said last time, that next year we would be 15%+. Order book is healthy, and the slow-moving orders also are behind us now, or our larger projects like CSMT. The design issues should be behind us by the end of this last quarter. And from April, we should be logging a steady turnover, even in some of our larger projects. So I think we are looking quite good to have not only a 15% + growth and also a double-digit margin, what I had projected last time, but that will happen in FY 2026. Yeah. So coming to the margin, so in the Q4 also, can we look at the double-digit kind of a margin? Q4, we are expecting a growth in the margin, but we must keep in mind that January also has been badly hit on account of NGT. It is only now that the work has started in real earnest in February. In fact, the ban got lifted around the 3rd or the 4th of February. So the first month of the last quarter has also been affected, but the margins will definitely be better. And we feel that the top line at the end of the year would have grown by about 8.5%, 9%. So next year also, on the margin side, we are looking at 10%. Is there a possibility that we can even clock 10.5% or maybe close to 11%? We may. If you compare our results, if you compare the quarter-on-quarter results of Ahluwalia with our peers, if you leave L&T aside, we are the only company other than Larsen & Toubro where our EBITDA margin has grown quarter-on-quarter. We've grown at 15%, whereas in most of the other construction companies, there has been a degrowth in the EBITDA margin. Our net profit has grown by 28%. Right? So we are hopeful that the last quarter will be good, and next year, our margin should increase. Got it. And are we L1 in any of the projects? And in the Q4, how much more order inflow can we look at for FY 2026? We've quoted for a few government projects and a few private projects. The government projects, the bids have yet not been opened, so we can't comment whether we are L1 or not L1 or where we stand. And we are actively negotiating with a couple of private sector clients for finalization. So yeah, there will be some order inflows. I can't peg a number, but there will be some inflows in this quarter. And for next year? So next year, our order inflow this year has been close to. I think it stands at about INR 7,800 crore. So next year, we are looking at a similar number. Got it. Lastly, sir, balancing numbers, if you can, Satbeer Singh, sir, can help: inventory, trade receivable, payable, gross debt, cash, retention money, mobilization advance, and unbilled revenue. Just cash position INR 246 crore, and bank balances INR 489 crore. Retention INR 351 crore. 351. Okay. Mobilization INR 621 crore. Okay. Unbilled revenue INR 572 crore. 572. Inventory INR 324 crore, including INR 36 crore real estate inventory. Okay. Net assets INR 772 crore. And payable? Trade payables is INR 882 crore. 882. Yes. Okay. Okay. Got it, sir. All the best, and thank you. Thanks, Shravan. Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah. Thanks for the opportunity, sir. Sir, first question is, what are the levers available to us to ensure that the margins will increase next year? Why am I asking this question? Because the NGT issue and the GRAP issue in Delhi will be a regular feature now, right, every year. Yes. So specifically talking about levers, I assume you're asking not for the industry per se. You're asking for us. Now, as I said, some of our larger projects, CSMT being the bigger one or the biggest one, the design issues are now slowly getting behind us. And by the end of this quarter, we hope we are seeing now that most of the approvals from the client would be in place. So we would be taking off as far as execution on that project is concerned. Secondly, most of our slow-moving projects would have finished by the end of this quarter. Thirdly, all the expenses, if you see, if you do a deep dive on our numbers, our staff expenses are high. They've gone up to nearly 9% on account of the NGT bans and the slow-moving orders. But now, when the projects will pick up, this number as a percentage will come down. What I'm trying to say is we are well stocked in terms of order book. We are well stocked in terms of staff. And now, the turnover will go up, and the margins will increase. As regards NGT, now with BJP being the ruling party in the entire NCR, we are hoping that there would be measures, concrete measures put in place, which would reduce the disturbance on account of NGT, while we don't expect it to go away. But this year was exceptionally bad in terms of the Supreme Court stepping in, the work happening, and stopping in fits and starts. We think that this would not be repeated next year. The industry is also coming together, making representations to the various governments. Now, the government at the center and the state being the same, we are hopeful that the industry voices will be heard, and the work may not be impeded as much during the period from October till January. Understood, sir. My second question is, is there a cost escalation because of NGT issue, or is it purely the loss of revenue? And are there any recalls available for us in this context? Look, NGT, though it's been going on for the last few years, it's not something which had been taken very seriously by our clients or by the government authorities. It's only this year that the various stakeholders have started to sit together and try and find out ways and means to combat it. So some clients of ours have started compensating for the labor, which has been idle during this period, primarily from the point of view to prevent the labor from going back home. So these are some measures. There are measures which various stakeholders are thinking of. That's why I said maybe before the season sets in, the winter season sets in next year, there would be more concrete and granular measures in place which would help us combat this problem in a better fashion. But escalation, as far as this delay is concerned, other than the general escalation clause, there are no other specific escalation clauses. Understood, sir. Thank you, sir. Thank you. Thank you. Thank you. The next question is from the line of Rajat from ithought PMS. Please go ahead. Thanks for the opportunity. Sir, how is the labor availability now? Labor continues to be in short supply, and that is a phenomenon which is something that, again, as I said, the stakeholders have started to sit together and see how they can combat this, maybe by more standardization, maybe by more mechanization, but it's not a problem that is going to go away in the short term. This is something which the government will have to look at. They will have to look at upskilling the labor. They will have to look at making this profession more attractive so that more people come in from their hometowns to work in the large cities, Tier I and Tier II cities, but it's a problem which is here to stay. Sir, our labor costs have dropped a lot despite the changes in revenue. I mean, is this labor shortage as well as idle labor both put together, and is that the reason why our labor costs have more than the revenues grow? The primary reason for the labor costs being up, I won't say it's labor shortage. The primary reason is on account of NGT. As I mentioned in my opening remarks and in answer to the first question, that 33% of our order book is now in the NCR region, which has been very badly affected so idle labor due to NGT, so the idle labor has also contributed to our labor percentage going up. Sir, how is finance costs also up more than the basically, as the percentage has stayed, it has gone up? Finance costs, it's not gone up quite a bit, but it's primarily on account of the mobilization advance, which is interest-bearing. And again, due to one project, which is the CSMT, where the work has been very less, and the mobilization recoveries consequently have also been less. So that has contributed to this minor uptick in the interest cost or the finance cost. And sir, do you imagine next year again our margins could take a hit because of, again, this NGT thing? No, I did. If you heard my answer to your predecessor's question, the margins, we are very, very confident the margins will go up because, as I said, the slow-moving projects are behind us. Our larger projects are now taking off. And all the extra expenses that we had done in anticipation of these projects taking off, we don't see any addition to those expenses. And obviously, the NGT, we are hoping that period October to January next year would also be handled in a much better fashion by all the stakeholders, including the government. Understood. Understood. Sir, what is the cash flow from operations for the nine months? Sorry, come again? Cash flow from operations for nine months? Again, repeat? Cash flow from operations. Cash flow from any specific? I think that is not available right now. But that position I have told already, INR 246 crore, and bank balances are INR 488 crore. Probably 750, 750. Yes. In terms of what we are expecting, I think in the last call we said, we are expecting for FY 2026, we were expecting inflows of INR 5,000-INR 6,000 crore. However, in today's call, we are saying maybe same level of inflow as this year, which means we are, in a way, being more bullish on the next year. So what is driving that bullishness? Which sectors within your view will contribute to this? As I said, this year, we have an inflow. We have had an inflow of about INR 7,800 crore and maybe a few hundred crore in the last quarter. And we think that this run rate should continue or this inflow run rate should continue in the next year because we don't see any slowdown on the private sector side. And government also, I guess, with the budget behind us and now the focus on the next round of elections, Bihar, where elections will be held in the end of this year, towards the end of this year, there's going to be a focus on infrastructure growth there, which we can see that. And since we are present there, we are present in Assam, we are seeing activity, the growth continuing. So we feel our order inflow would be on similar lines. Understood, so you expect private mix to be substantially higher next year in the inflows compared to this year? Yeah. We hope to maintain, or our plan is to strategically maintain, an equitable distribution between the public and the private sector. This is what I've been mentioning for the last three investor calls. And we've got there. We are at about, I think, we are equally divided between the two sectors now. We would maintain a 50/50 ratio. Understood. Understood. Thank you so much for your patience, sir. Thank you. Thank you. The next question is from the line of Amit Khetan from Laburnum Capital. Please go ahead. Hi. Thank you for taking my questions. So my first question is, our scale of individual projects have gone up over the last few years. And most of our projects are now, at least the major ones, are over INR 1,000 crore. Just wanted to understand, do the larger projects come with better margins and/or working capital terms, or would they be similar to the smaller projects? That's an interesting question. Conventional logic says that the larger projects should come with better margins, and that's what but in the short term, the projects, because they're becoming larger, they're also becoming more complex. The timelines are getting shrunk. The skill set or the skill levels in the labor force on which we continue to remain dependent to a large scale is dwindling. So it's a bit of a tightrope walk. In the long run, yes, the margins on the larger scale projects, we feel, would be higher. But in the short term, I think that will not be the case. That has not been the case, and that will not be the case going forward. The government, as I said earlier, being a major stakeholder in the infrastructure development, will have to step in as far as the skill upgradation measures are concerned and standardization measures are concerned. Once that happens, then, of course, the margins will be higher. Have I been able to answer your question? Yes. Yes. And working capital would be similar? No. Working capital requirements are much more now because, obviously, mechanization is much more. The projects are becoming taller, as I said, more complex. More projects are now EPC projects. Even the private sector is trying to embrace the EPC model or trying to at least look at it. So mechanization costs are higher. Staffing costs are going higher, as you can see from the numbers of our balance sheet in these nine months. So yeah, it's more working capital intensive. Which, again, in the long run, would make the entry barrier higher. So it may lead to, it will lead to, not may, better margins for established larger players. Understood. And secondly, we have a significant order book right now compared to the scale of our current revenues. As we scale up and execute these orders, what sort of organizational changes do you foresee that you will require? The changes in the organization had already started. In fact, I have been continuously mentioning in all our investor calls that Ahluwalia is nimble-footed, and we had embarked on a digital transformation drive three to four years ago, which is helmed by our director, Mr. Vikas Ahluwalia. We are now, as a part of that exercise, well into SAP implementation. We are going live in a month or so. This comes with a slew of other measures where the company is now more data-driven. There are more analytics. This had been started three to four years ago. We would, going forward, be using AI also to look at various areas of operation. The results are there for us to see now also. As I mentioned earlier, our profit and EBITDA margins have gone up as compared to the last quarter of this financial year, and then we are investing in training and upskilling of our existing staff. There is succession planning being done for every level. New talent is being groomed, so these are some of the measures that we have undertaken. Got it. Got it. And last question would be, what would be our fixed rate versus variable rate proportion? And related to that, in case of variable rate contracts, is labor also, are there clauses for escalation of labor costs as well, or is that only for material costs? There are different cost escalation formulas which are there in different contracts. In the government contracts, most of the contracts have the wholesale price index and the labor index, minimum wage index, based on which the escalation is paid. Almost all our government contracts, the escalation clause is there, other than one project that we are executing for NBCC, which is a fixed price contract, which is also nearing completion. As far as the private contracts go, all volatile materials like cement, steel, raw materials like aggregate, sand, blocks, most of the private clients now have started putting in base rates based on which the cost escalation or de-escalation is a pass-through to the client. On a lot of, maybe to put a ballpark figure, 50% of contracts, the labor escalation is also paid. 50%, it is not paid. Private sector, I'm talking about. Got it. So it would be 100% for the government and 50% for private? Yes. You can say that. But the volatile materials are covered. Got it. Got it. And what would be your current mix of variable versus fixed in the order book? It's 13% of fixed price contracts. So 87% variable and 13% fixed price. Great. Thanks a lot and all the best. Thank you. Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead. Thanks for the opportunity. Sir, firstly, on the margin side, so we said that next year could be a double-digit margin. So could it be very closer to 10%, or we can even expect somewhere around 10.5%-11% as well? I think it should exceed 10%. Okay. And so secondly, for Q4, we have mentioned that the entire IR growth would be somewhere around nine odd%. So it impacts around 15-odd% growth in Q4. So what will lead to this uptick in the Q4, given that the churn also has been impacted by NGT? What we are seeing starting February is a considerable upswing in our production across projects in NCR, right? And as I mentioned, some of the clients paid for us to hold our labor on-site even when the projects were closed. We could just hit the ground running on third or fourth of February when the NGT ban was lifted. We are seeing that, or we feel that if we extrapolate our work now in the first week of February or from third till tenth, we feel that the revenue will go up considerably as compared to the last quarter, which would lead to a better margin. Q4 also should be not a double-digit margin. It should be between 9%-10%. Should be, yes. It should be about 10%. Okay. And sir, secondly, on some few bigger projects, when do we expect to start the Gems & Jewellery? Earlier, we were targeting somewhere around June. Yeah. We are expecting that they will give us a notice to proceed in the next one to two months. So any Ballpark? I mentioned that starting the next financial year, Gems & Jewellery Park, the actual work on the ground will begin because we have to start designing also. So maybe towards the end of Q1, actual work on the ground will begin. In April, work on CSMT will be going on in real earnest. We would be working on a number of buildings there parallelly. And we are seeing substantial uptick on the monthly progress out of CSMT. Sorry, you said something? Yeah. So earlier, we were targeting closer to INR 300 crore of revenue for FY 2025 from CSMT. So that looks a bit difficult given the. No, that will not happen. We are looking at anywhere between INR 80-INR 100 crore. That is something which has set us back in terms of our revenue guidance for FY 2025. INR 80 crore-INR 100 crore in Q4, right? Yes. How much? No, no, no. In Q4, as far as CSMT is concerned. Totally in the quarter. About INR 80-INR 100 crore in Q4. For FY 2026? FY 2026, we are looking at about INR 600-INR 700, about INR 750 crore. And the similar figure for Gems & Jewellery Park for 2026 and 2027, at least for 2026? Gems & Jewellery Park should be lesser. As I said, the first two to three months would go in designing and approvals, and then it will take off. So maybe it will be about INR 500 crore. Do we expect a similar? Could it happen that similar issues may come up in design and that can lead to maybe a delay in execution like we saw in CSMT Gems & Jewellery Park? Or we are confident that it should proceed on its pace? Look, there can be delays, but not to the extent that we've experienced in CSMT. CSMT. A is a much more complicated project. It's a live station. B, it is hemmed by a nodal agency which is comparatively new as compared to more established PMCs like NBCC and CPWD. Thirdly, the Gems & Jewellery Park project is not as complex. These are basically large sheds or offices where the Gems & Jewellery workers have to work. Though it's bigger in scale, but it's not as complicated. So we foresee fewer problems there. Lastly, on interest cost, it should be a similar number in Q4 as well at around INR 14-15 odd crore? Yes. Okay. Thank you, sir. I'll come back in the queue. Thank you. Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Hi. Thank you, sir, for the opportunity again. Sir, our gross debt would be the similar 10-odd crore? Gross debt with the working capital, that is INR 5.93 crore. And in totality, including term loan, it is INR 11 crore. Okay. So INR 13 odd crore working capital plus INR 11 crore long-term debt? Yeah, long-term debt. Yes. Okay. So close to INR 24 odd crore. Okay. Got it. And in nine months? No, no. Total is INR 11 crore. Total is INR 11 crore. Okay. Okay. Got it. And in nine months, how much CapEx we have done in the Q4? Nine months, INR 154 crore. 154? Yes. In the fourth? This quarter, 53 crore. In the Q4, how much we are looking at? That is INR 175 crore. INR 175 crore. Okay. So next year also, can we see the similar kind of CapEx? No, I think. No, it will be lesser. It will not be as much. As I said, projects, CSMT, DLF, all the other larger projects, the CapEx which will take off now, the CapEx has already been done. So I think it should be about INR 125 crore. Got it. And yeah, sir, you mentioned that you have bid for a couple of government projects and also having a discussion with the private. So any ballpark number in terms of how many projects and the broader value combined put together everything? Shravan, it will be very difficult because, as I said, the government project bids have yet not been opened, so we don't even know where we stand. On the private sector side, the opening is not in the public domain, and the decision is not necessarily L1. So negotiations or discussions are happening. It will be very difficult for me to say right now or give an indication right now. No, no. I was just trying to understand both put together, government, private, in terms of will it be the value that we have bid from our side would be INR 1,000-INR 2,000 crore kind of a number? In terms of bid value, in terms of the projects that we bid, it should be about, I think it should be easily about INR 4,000 crore. Okay. And then in terms of the. Maybe even INR 5,000 crore. Yeah. I think from the top of my head, the projects that have been bid till now and not decided would be close to INR 5,500 crore. Got it. And then further, in terms of by March, how much more are we looking at considering? Will it be also INR 4,000-INR 5,000 odd crore that are looking to bid? At least INR 3,000 crore. Okay. Yeah. Got it. And sir, is this both the airport one there also, the execution when? Started. Both projects, the execution has started. In fact, I think at Varanasi, we've already clocked about INR 40 crore. At Darbhanga, we've clocked about INR 20 crore. Okay. And then even the Signature Global Business Park also, there also the execution has started? Not totally. The client has to hand over the towers to us after excavation. So they barely handed over 10% of the site to us. That's why I'm saying that all this starting from the next financial year, the first quarter of next financial year, all these projects will take off. Yeah. So that's what actually I was trying to understand. So if almost all the projects will start kicking in, we should be having close to even more than a 20% kind of a growth next year. But you are restricting yourself to 15% +. You know me. We are always conservative. Otherwise, you hold us accountable. No, that's why I'm confident that our margins will also go up, and we will be having double-digit margins next year. You can already see the results. Though there has been quarter-to-quarter, corresponding quarter-to-quarter degrowth, but if we compare to the last quarter of this financial year, we are extremely bullish. We can see that our margins have increased significantly. Yeah. And, sir, there's the last installment of MR of INR 56 odd crore that have been received? Yes. It's been received. Yes. Okay. Okay. Got it, sir. Thank you and all the best. Thanks, Shravan. Thank you. The next question is from the line of Samir Jain and the individual investor. Please go ahead. Mr. Jain, your line is unmuted. Please go ahead with your question. Hello? Yeah, we can't hear you. Hello? Yes. Hi. Sir, one question we had on CSMT was there were some newspaper reports that end of December, they mentioned a 15% completion of the project, and they were quoting some railway authorities. Now, obviously, that is very different from the revenues that we have booked, right? So what would be the difference between how the railway thinks of project completion versus how much we book in terms of revenues? So let me answer that shortly. Yeah. You see, what is happening is that because now the designs are getting finalized, so a lot of this is the gap here. So a lot of fabrication work of structural steel is happening, which is, say, about 40% is off-site and 60% is on-site. So if you consider that, which is actually the work not done, it is not being bid yet. It's a while to start bidding it. So if you take that figure and 15% work done also, in their definition, means that a lot of area has been taken up, which is now we are doing the ground preparation, like removing the age-old services, 100-year-old services that are running under the station. So that work is taking a lot of time. Like we've been saying from day one, we passed day one in the things like four, five months. The design is taking a lot of time because it is a very complex system, complex, complex. You are integrating a new building with a 100-year-old infrastructure. So that is what is going on. It will be built around curtain wall structural steel, nearly 5,000-6,000 metric tons of structural steel is under fabrication or fabricated, and it's onsite. So those numbers, if you go by, I can't say 15%, but yes, there is a considerable amount of work which is going on. And to add to what Vikas has said, 15% would tend to amount to about INR 270-odd crore. If you take out the GST value, the project value is about INR 1,800 crore. It will tend to amount to INR 270-odd crore. We've already bid acknowledged and agreed bid figure with the client is close to INR 150-INR 160 crore. Rest of, say, INR 100 odd crore, what Vikas has said is work done but unbid because a lot of fabrication has already happened. Yeah. Maybe when they say 15%, this is sort of an intangible number. When they say 15%, they may be taking work in progress or stock into account. Right. Right. I understand that. Thank you. My second question is really Samir Ji can answer this. From a revenue recognition point of view, let's say we have completed 5% of the value of the work at a site, do we recognize revenue proportionate 5%, or is there a minimum threshold we wait for before the revenues are booked? No. The revenue is booked when the client passes a bill. So what is it? What work has been executed that also includes revenue, includes also unbilled revenue also? Right. Okay. That happens as and when whatever work is completed, right? There's no minimum threshold. Let's say we start recognizing only at a certain milestone or a certain percentage completion. Even if it is 1% and client approves the bill, we book revenues. That happens as and when as well. No, no. He's not asking about escalation. Please repeat your question. What happens in these EPC contracts, there is a stage-wise payment so the stage has to come when it can be bid also. I see. Okay. So if the stage is after 5%, then you only get 5%. If the stage is at 1%, then revenues are booked, and then 1% stage is completed, right? That's the way to understand. No, no. No, no. There's a mathematical formula to this. So perhaps if you come down to the office, we can. Okay. All right. Let me. Yes. Right. And then lastly, in the subcontracting cost, if we compare this quarter with the last two quarters, and there is some sort of a reduction there in the percentage of revenues, does this have anything to do with availability of labor or any other metrics? Because it's counterintuitive that in cases of labor shortage, subcontracting has come off a little bit. Sorry. Your question was not very clearly audible at our end. Could you repeat it, please? Sure. Sure. Sir, on subcontracting costs, right? Now, if I look at the previous two quarters, we were at about 31%-32% of revenues. This quarter, we are at about 28%, a little over 28%. So what would explain this slight reduction versus the first two quarters, especially in the light of shortage of labor continuing? Just basically, the subcontracting cost is coming out 31%. It's not basically. You can say in technical terms, subcontracting. It's also improved manpower supply and also labor contract. That's why that amount is very high and percentage is high. He is asking why has it reduced? So subcontracting, petty contracting, labor supply, this keeps on interchanging depending on the nature of the work. So in one quarter, if the subcontracting number is, say, 31%, as you said, then subcontracting and contractors' parlance is work which includes material also, right? Say for instance, if we've outsourced lift installation or escalator installation or air con works, right? This is with material. So in the preceding quarter, maybe such works, outsourced works with material may have been slightly higher. So this number needs to be actually looked at in conjunction with the labor supply and with material. That is why this figure needs to be looked at. It should be compared with the inner case. Okay. So that explains. Thank you so much. I'm done with my questions already. Yeah. Hello. Any further questions? Moderator? Hello. Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please go ahead. Thank you. So my first question is on the NGT ban. Since when was the ban implemented? It started in end October, November, around Diwali time. That is the time that the air quality index starts worsening in Delhi and NCR, and it has gone on till as late as the first week of February, and this time, because Supreme Court also got involved, the ban was introduced, revoked, introduced. It happened in fits and starts, so there have been multiple stoppages from, say, end October till about February first week. Otherwise, what would have been an end date now it got extended? It is now dependent totally on the air pollution, the air quality index. As per the GRAP guidelines, there are different thresholds when different levels of GRAP guidelines kick in. So it's more or less automatic. When the AQI, say, crosses a certain level, one level of restrictions come in. It jumps up further. Another level, more stringent restrictions kick in. So when it crosses 300, the entire construction machinery comes to a standstill. The supply chain comes to a standstill because the trucks cannot enter NCR region. And then once these guidelines are sort of revoked, then there is a lot of jam of trucks or materials at the borders. So it takes time for the pace to pick up again. Are you understanding? Have I sort of clarified? Yes. Just to compare, last year, when was it over the ban? And just to compare. Yeah. Just to compare. This year, because if you see the number of stoppages, starts and restarts were far more. So it's sort of the effect on the supply chain all around has been much worse, so to say. While the end-to-end duration may have been the same, but overall, the impact on construction work at ground as well as the supply chain has been far worse. Understood. Understood. So my next question is on the number of projects bid. The value of projects bid, you mentioned around INR 5,000 crore. Sir, any flavor on what type of segment? Which segment is this? Is it residential, commercial, or any such flavor would be helpful? All. Residential, commercial, healthcare, and hospitals. Yeah. Healthcare. Yeah. So it's across all of those segments? Yes. Understood. So my last question is, are you seeing any slowdown in payments from states? Not really. As I mentioned in the investor call at the end of the last quarter, I think the slow-moving payments, this thing, Bengal our government projects are over. Bihar, we are seeing an improvement since the BJP and JDU government has come to power. And Assam continues to be okay for us because same government is there at the center and the state. So that is where we are. So no material change from last quarter? No. No. Understood. Okay. Thank you. Thank you. The next question is from the line of Vasudev Ganatra from Nuvama Wealth. Please go ahead. Yeah. Thank you for the opportunity, sir. So can you give us what's the status of the DLF The Arbour project and the Tata Memorial project? DLF project is now well underway. And it had taken off prior to the NGT ban coming into play. But post the ban, DLF is one of the clients where they've compensated the labor for staying back. So when the ban was revoked and the work started, I think on the 3rd of February, we hit the ground running. And in this month, we've already done close to 4,000 cubic meters of concrete there. So that project is we see that seeing ourselves clock a healthy run rate there in the rest of this quarter as well as next financial year. We've done a total billing there already in excess of INR 200 crore, which was the other project that you asked about? Tata Memorial. This is 110 has been executed so far. Tata Memorial, INR 110 crore has been executed. Okay, sir and sir, for next year, what is the kind of bid pipeline that we are looking to bid with segments and if you can quantify that? Residential, healthcare, commercial, and total pipeline should be in the region of about INR 25,000 crore. Okay. Sure. So that's it from my side. Thank you. Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead. Sir, after mobilization advance of INR 620 odd crore, what will be the interest-bearing portion? Just 43%. What was the mobilization advance as of September? It's INR 621 crore. I mean, as of September? As of September. I didn't get you. You asked me the truth number? Mobilization advance as of September? Absolutely. This is INR 542 crore. Okay. Sir, so do we expect this number to reduce next year, or should it be in similar range? It should be in the similar range going forward. As I said, we are increasing our private sector order book there. The mobilization is interest-free, so the company policy is to take that. As far as wherever there is interest-bearing advance, we would try and work without the advances. Say, for instance, the two airport projects. We have not availed of the advance. We are funding it from internal accruals, so going forward, we are working to reduce the finance costs, which is primarily on account of interest-bearing mobilization advances. Okay. And sir, recently, there is a tier one on the residential side of INR 1,100 crore each for the De-Luxe DXP and second was that of composite structural works. So those projects, when do we expect to start? So those projects, as I said, will take off in the next financial year. While some little work has started on the ground, but as I mentioned in answer to an earlier question, DXP, Signature Global, the work fronts which the client has to hand over to us have not been done, barely 5%-10%. So they are a little slow off the blocks. We think they will start in the next financial year. Okay. Okay. Thank you, sir. Those are my questions. Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you so much, everybody, for your insightful comments and questions. And I look forward to seeing you again at the end of this financial year on next investor call. Thank you so much. Bye. Thank you. On behalf of Ahluwalia Contracts (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.