Ladies and gentlemen, good day, and welcome to KNR Constructions Limited Q1 FY25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. 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 assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Venkata Ram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, sir. Good morning, everybody. Thank you for joining us today on the call to discuss the financial results for Q1 FY 2025. Along with me, I am Mr. K. Jalandhar Reddy, Executive Director and Strategic Growth Advisors, our Investor Relations Advisor. We have uploaded results and the investor presentation on the stock exchanges as well as on our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and the industry events, post which we will have question and answer session. I would now like to share our perspective on the significant industry development. With the release of the interim budget, a substantial sum of INR 11.11 lakh crores was earmarked for the infrastructure sector. This allocation underscores a pivotal role in India's growth story, signaling that the infrastructure sector shall remain a focal point of investment and development. Additionally, the MoRTH had secured approval for INR 22 lakh crores investment in a comprehensive highway development plan, aiming to cover around 30,600 km by 2031-32. Furthermore, the cabinet approved eight national high-speed road corridor projects with an investment surpassing INR 50,000 crores. Another promising development for the sector is that the MoRTH plan to award road contracts worth INR 3 lakh crores over the next three months, which aims to close the current financial year with INR 5 lakh crores in the award contracts, despite a slow start earlier in this year. The government has also extended the completion deadline for Bharatmala Phase I by six years from its original completion schedule. Now, as for the revised schedule, the Phase One will be completed by 2027-2028. The extension is on account of delay in the project, awarding as the approval for the revised project cost was pending for cabinet note. Upon the completion of the Bharatmala Pariyojana Phase I by 2028-2029, MoRTH anticipates gathering INR 125,000 crore from user fees and monetization of the national highways, triple the amount collected in 2022-2023. The Union Budget has also allocated INR 15,000 crore for the development of Andhra Pradesh's capital city. The government of Telangana also proposing to invest INR 150,000 crore in the next five years for rejuvenation of Musi Riverfront. This highlights the government's dedication to expanding and modernizing the highway network, underscoring its commitment to create a solid transportation infrastructure that align with India's development and objectives. Now, coming to the key update of the company. The percentage of fiscal progress as of June 30, 2024 for the ten projects is as follows: Magadi to Somwarpet, approximately 84%. Oddanchatram to Madathukulam, 100%, and we have applied for the final COD of the project. Ramanattukara to Valanchery, approximately 27%. Valanchery to Kappirikkad, approximately 82%, and Chittoor to Thatchur, 63%. As of June 30, 2024, the company has already invested INR 518 crore out of INR 992 crore raised equity requirement for the eight HAM projects. Out of balance equity requirement of INR 424 crore, for all... For these eight HAM projects, INR 335 crore, 72 crore and 67 crore will be included in nine months of FY 2025, 2026 and 2027, respectively. You can refer to the slide number 24 of the investor presentation for the details. Onshore collection from the Bihar project has a collection of INR 10 crore in Q1 FY 2025 as compared to 11.6 crore in Q1 FY 2024. Now, coming to the order book position. As of June 30, 2024, the company has a total order book position of INR 4,922 crore. This can be bifurcated as 58% for the EPC road projects and HAM projects, whereas 20% of the total order book is for irrigation projects, and balance 32% is from the pipeline projects. Client-wise bifurcation is 63%, the order book is from the third-party clients and balance 37% from the captive HAM projects. The third-party order book percentage is skewed between state government contract at 51%, whereas 10% is from central government and balance 2% from the private players. Kindly note that this order book does not include contracts aggregating to INR 1,200 crore, as we are yet to receive the Appointed Date for 2 HAM projects. If we include these, our order book will increase to INR 6,122 crore. The current order book will be executed over a period of one and a half years. Now, with this election behind us and the strong focus on roads and highway development, as indicated through budgetary allocation towards the sector. We expect new order awarding to be picked up, and we are targeting an order inflow of around INR 6,000-7,000 crore by the end of FY 2025. Lastly, CRISIL Rating has reaffirmed its outlook on the long-term banking sector at CRISIL AA Stable, and also the short-term rating is reaffirmed at CRISIL A1+. Now, let me take you through the financial performance for the quarter. Before discussing the financial number, I would like to highlight that during the quarter, the company has received an arbitration claim of INR 60.8 crore, which recognizes the revenue from operations, and against that, we incurred a cost of INR 4.4 crore, which is part of our other expenses, and the tax on the total arbitration claim is INR 14.2 crore, which is included in current tax. This arbitration claim is received from one of our JV, that is Patel KNR Joint Venture. Additionally, during the quarter, one of the associate company, that is Patel KNR Infrastructures Limited, has paid a dividend of INR 14.5 crore, which form part of our other income, and the tax on same of INR 3.7 crore included in the current tax. The revenue for the quarter stood at INR 880 crore. EBITDA for Q1 FY 2025 grew by 11% year-on-year growth to INR 192 crore as compared to INR 173 crore in Q1 FY 2024. EBITDA margin in Q1 FY 2025 is at 21.8%. Net profit for the quarter was INR 134 crore as against INR 110 crore in Q1 FY 2024, this representing a growth of 20% year-on-year. Now, coming to the consolidated financial performance. The company recorded a flattish revenue of INR 985 crore in Q1 FY25. EBITDA came in at INR 229 crore in Q1 FY25 to INR 216 crore in Q1 FY24. EBITDA margin in the current quarter stood at 28.3%. Profit after tax stood at INR 166 crore in Q1 FY25 against INR 133 crore in Q1 FY24, a growth of 28%. Now, moving on to the standalone balance sheet. The company continued to maintain a strong balance sheet. The working capital days stood at 78 days as on 30 June 2024. The consolidated debt as of June 30, 2024, is INR 1,532 crores as compared to INR 1,220 crore as of March 31, 2024. The net debt to equity on consolidated basis as of June 30, 2024, stood at 0.41 times, as compared to 0.36 times as of March 31, 2024. With this, we open the floor for question and answer. 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 touchtone 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'll 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, sir. Sir, the bigger question for us is the order inflow and the revenue. So wanted to understand a bit deeper in that. So, so starting with, on the, on the order inflow front, so, two, three aspects to understand. First, how much orders and also in which segments we have already bid it, where outcome is yet to come? And second, when we are saying that, we are looking at INR 5,000 crore-INR 6,000 crore, six to seven thousand crore kind of order inflow now, so when can it can come, and also, how much we are looking at from HAM? So that is one. And then, post that, I, I have a question on the revenue front. Sir, actually, as you have asked, real concern is about order book only as of now. So we are keen on addressing that actually. We've been extensively working for the orders to... Hello? Yeah. So we are closely working on that, sir. And now there's, as we all know, that tenders from NHAI has been completely reduced. Maybe, as per our quarterly statement and all, there should be a good rally, which is coming up from probably from third week of this month or from the next month onwards. So that's one of the aspects which should be there. But, however, we expect a little bit of aggression in the sector, which will little bit occupy the space. However, there are projects from Kerala, there are projects from northeast part of India, where we have already got. Those areas are also coming up. So mostly HAM projects are little bit... Hopefully, we will get some HAM projects, which we are targeting about. Apart from that, further, we are also very keen in working on some Maharashtra industrial projects also we are working. That means I'm not straightaway qualified into it because- ... we have, we couldn't finish our express highway projects timely. I mean to say timely, the time the tender is, PQ is quoted, that time, our projects are not ready. So, we could not qualify on that. So we are starting some sort of back-to-back arrangement with Patel Infra. So I think, soon as we as, it will get closed. So about 2,000, you know, plus around, would be interested in participating that. So apart from that, we are also thinking, as you have already seen that, we have placed our bids in metros with NCC's JV. Apart from that, we are also planning to go with the irrigation projects as we would likely qualifying in many of the projects in MP, Madhya, the state of Madhya Pradesh, that is work. And even our projects also, we are participating. We are trying to participate this time. So we are very keen in this thing. Apart from that, Telangana government is also coming up with some irrigation projects. So hopefully we will try to get one project at least from that place. And Andhra Pradesh is one of now new era is opened in Andhra Pradesh, better than earlier. So I think it is very premature to say anything, but however, we have spoken to various ministers and all. They are very keen in coming out with tenders in highways and irrigation as well, with the central government public central government help or they are taking some banks' help to get into those projects completion. So that is also another area which is quite open for us. Further, we are also examining on mining contracts. So, I think the JV is also started out for that. We would, if the healthy margins are there, definitely we would participate in those areas. Apart from that, we are also thinking of metro network contracts, like there are some back-to-back arrangements which from irrigation sector or from railway sectors. There is a massive, massive network contracts are also coming out, which we are thinking of, working on them, and we are also working on it. So these are the new areas. Even in railways, we would like to put bids, but I think last bid from railways was very aggressive. We will try to see to still participate and try to get the jobs from that. So this is the effort which we are doing, sir, and I think the efforts are enormous and we were definitely targeting INR 6,000 crore-INR 7,000 crore by this year, and maybe hopefully we will get it. That's that feeling we are, we have. Okay. Sir, just a bit further on, just trying to understand. So this INR 2,000 crore subcontracting for MSRDC with Patel Infra, so there, that's the one that we are looking at, which, as you said, would be mostly kind of in the final stage. So apart from that, any further subcontracting in MSRDC, are we looking at? No, sir. Actually, primarily, I'm looking at one. Let me closely work on it and see if at all things working better, then some adjacent projects participation also we can work about. Because we are the people most wanted by the bigger contractors. If I am doing a back-to-back arrangement, many people are there to ask me. But I think we are just taking one project right now. If things go, if I think that it is safe and then good, then I can further also take some more projects with us. Okay. And in terms of- Yeah. Yeah, apart from that, sir, total, how much we would have bidded in road, irrigation, and the EPC? So HAM and EPC particularly, how much where we have already bidded and the final award is yet to come? Only one or two projects, sir, not much. So, anything new, bids only we are hoping. Okay. In the broader range, if you can help us in terms of how much more are we planning to bid? If you can also specify in terms of the overall irrigation, metro, even, even you talk about the mining also, railway mining, so broader, because that will help us, that this is the kind of opportunity that we are looking at in terms of bidding, individual segment-wise. So, just trying to understand if the size is so bigger, then the chances of we are getting INR 6,000 crore-INR 7,000 crore inflow. Winning chances could be great. Yes. Actually, sir, that BOT tolls, we have told you that we are very keen in participating in BOT tolls with players like Cube or some other. There are two other agencies are there. There, but Cube wanted me to do a EPC contract for them, and it's an exclusive EPC with them.... Apart from that, the size of projects are almost INR 3,000 crore-INR 4,000 crore, as you have already seen in that building sector. Apart from that, we were also keen in participating about, say, certain projects which we would like to also compete with JV with some of the investor groups. Those are under discussion as of now, so I can't tell you that. But our participation will be about to the tune of 26%-27%, and balance will be with the developers only. So such arrangement we are doing, so that if I get one, even one project out of that, I think around INR 3,250 crore worth of EPC will be there with me. And apart from that, MSRDC is around INR 2,000 crore, which we now are thinking. Apart from that, irrigation, the Telangana irrigation, which is coming out with INR 1,200 crore-INR 2,200 crore, all that size they are coming out, so there is a quite good chance that if we get anything, they're saying about INR 1,000 crore-INR 2,000 crore, we can win one contract out of that. So even, I heard, the AP government is also grouping the contracts for the bigger size only. The clear details are not known, but they are also planning above INR 800 crore to INR 5,000 crore kind of arrangements there. Apart from that, railways and all, we are only participating in those tenders where a little bit higher, more than 800, INR 700 crores only we are trying to participate, because below that it's highly crowded and there is no good bid that is happening there. So these are the areas, sir, we are having MSRDC, NHAI also, there is a contract which are coming out, they are of 800, 2000 to 1000, 1100 also there. 2200 also there. 4000 is also there, but I will be requiring a partner to participate into that. So all that is there in that, sir. But there are very small contracts also there in the same group, irrigation sector with the MP. So these are all there, sir. Okay. And UP also- Okay. There is a contracts which are coming out. And Jal Shakti, most probably UP, Bihar and all other places, it's a Jal Shakti thing which are more active, so we can even get those contracts. Who are above 800 only, we'll be participating. That's what we are thinking. Got it. Got it, sir. And lastly, sir, on the revenue front, so given this quarter obviously is on the lower side, so now for full year of FY 25, how much we can look at in terms of the revenue? And given if we get this INR 6,000-7,000 crore inflow in this year, so how much more or the how much growth we can look at in terms of revenue in FY 26 next year? Either a growth or maybe absolute number would be fine. Yes. Actually, this, to answer this question, little bit of certain things also to be take, undertake. Certain assumptions and things could be taken into the account. See, I would say, as of now, we could not start the works in that Mysuru-Kushalnagar area, where around INR 1,200 crore worth of contracts are pending for Appointed Date. I think the department, NHAI is saying that within one month it will be solved. So, hopefully they are really working on it. I think the EC meeting could happen on ninth, I think the twentieth or twenty-second, there's a date for that to happen. So once that is coming in, then there will be little scope for us to work in third quarter, not in the second quarter. Second quarter is highly disappointing for us because complete projects are in rainy season, and this time rains have rocked the states. So like Kerala, you might have heard about what sort of floods we are getting there. And even Mangaluru, we are facing the same situation. So most of the work which is around these areas, and so little bit disappointing results we are expecting from the second quarter. But third and fourth quarter, we will try to do as good as we. As assumptions, as I rightly said, the assumptions like I would get some more orders to execute in Q3 at least, and Q4. So if I'm able to execute all these, then definitely we will try to touch the last year's results. I'm not very sure about growth on the revenue side this time, but however, we try our best in getting those things in order. And for next year, sir, FY 2026, so given- ... Mr. Shravan, we request you to get back to the question. Yeah, I, let me answer this question. Yes, I got that. Yeah. Mm, actually, frankly speaking now, this FY 2025-2026, the main thing, we can, we are any of the targeting about INR 6,000-7,000 crore worth of contracts. If we receive in this year, definitely we are quite good for that year what we are talking about. So, I think we'll do the better than what we have performed again this year. Thank you, sir. The next question- Yeah. is from the line of Alok Deora, from Motilal Oswal. Please go ahead. ... Hello? Hello. Yeah. Am I audible? Yes, sir, you are audible. Yeah. Yeah, yeah, yeah. Yeah, good morning. Just one question, sir. Sir, you gave an elaborate answer on the order inflow and what could be the opportunities ahead. But considering that, you know, you might receive some orders by end of this year, and or early part of next year, so FY 26, what kind of growth we could look at here? Sir, actually, if we bagged around INR 6,000 crore worth of contracts. See, I rightly said that assumptions, what we are taking into account is a major play, what it happens. See, if I were to get and I could work from third quarter onwards at least, or fourth quarter, fourth quarter onwards, so FY 2025 would be very, very grateful, right? So these assumptions get become should become true. That's the major concern in this. But however, we are confident and we will definitely work towards that to get the order inflow to our company from various sectors what I spoken about. The main thing is that the initial aggressions could be there from NHAI side, so little bit extent are there. Still, initial stages, even if there is an aggression, we are addressing through the BOT toll projects, as I rightly said, that we will be participating into BOT tolls. Even, the tenders happen in, say, next month, September, then, I think, those works then can ground in the first quarter of 2025 sometime. Let's hope for the best in this, sir, and, definitely, we are also hopeful, and we are also confident about it. Sure. No, because when we look at the order book, it is INR 6,000, including the INR 1,200 of projects which have not received Appointed Date. So even it's roughly 1.5 times order book to revenue, so it's, you know, quite critically low. So do you think we could see, like, two, two years- Critically low, but, the thing is that, expected orders are also not under execution. That is the major, Uh, right The thing I'm addressing here. Right. So do you think we could see a couple of years of kind of very muted growth? Because, you know, even if you were to bag a BOT project or a HAM project by end of this year, nothing would really start before 8-10 months after bagging the project in terms of revenue contribution. So we could be looking at just at best 5%-10% growth in FY 2026 and even 2027? Sure, sir, definitely. We can, we will, to work towards that, and we want to do that. That is, that's very important. Sure, sir. I think that's all from my side. I was just looking at the revenue growth potential. Thank you, sir. Yeah, thank you. Thank you. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead. Yeah, thanks for the opportunity. Sir, in the Marripudi HAM, we have received the AD in February 2024, and there is no execution in Q1. So any particular- No, sir, actually. Yes, sir, that work is started. Actually, you know, it's a complete greenfield highway, so extensively the earthworks are going on in that area. Even to start the structures, we would need that highway at least some network to be done. And you know that, it's a rainy season in that Bihar area. In those areas, it is completely rainy season this time. So now, I think the Q2, we have recently we have submitted 5% bill, and 10% bill complete submit in the September. So it is almost we have reached around 9.5% by now. For the full year quarter, what are we targeting? Around 30%-35%? Yes. Yes. Sir, also in case of Periyashanti project, the execution was very low in first quarter, so. Periyashanti, sir. Periyashanti, it is, actually, the problem was, is that, sometime in April also there were rains, and, completely May, May month is fully in the rains. And, it's an EPC payment road, and, quite a lot of, of work development is also associated with that. So that's why the, progress is very less over there. And, therefore, yesterday, I think, last, w- Friday, we had a review meeting with Periyashanti, sir. He really asked about it, so we have explained all the problems to him, and, we wanted an extension up to June, June, June, next month, next year. So by June next, next year, we are very sure that we'll be completing, because I think rainy season must get over by this mid of September. First week onwards, we should be getting the dry spell over there. So definitely we'll work towards that, and and we have target to complete the project balance by this June, at least, coming year. Okay. And, sir, depreciation for the quarter was very low. It fell down drastically. So what was the reason for that, and what could be the n-number going ahead on a quarterly or annual basis? ... Yeah, yeah, the depreciation being below, the reason is that because this last year, we did addition of only just INR 18 crore, and this quarter, only just addition of INR 10 crore only we did. Because last almost you see 1.5 year, there is not much addition to the depreciation. So that's why depreciation figure was low, and before that year, we used to do somewhere around INR 150 crore, like that, additions. As per our depreciation accounting policy for the road assets, we are depreciating in the 7 years, and the irrigation assets, we are depreciating in the 3 years. So there is not much acquisition we did in the irrigation project. Due to that reason, depreciation was low, and we expect that if it is continue, definitely we are getting new projects, then we will add it. If it is like that situation, we may earn some between INR 100 and 110, INR 100 or INR 100 and 110 crores depreciation for the end of the year. Okay. And sir, what kind of revenue are you targeting from irrigation segment for the year? For the year, maybe, maybe around INR 200-250 crore will be there for entire year. Okay. Okay. Thank you, sir. Yeah, thank you. Thank you. The next question is on the line of Lokesh Manik from Vallum Capital. Please go ahead. Yeah. Hi, good morning to the team. I had one question on your strategy, where you have mentioned that you want to increasingly pick up more projects which require higher engineering skill. So if just qualitatively, if you can give us an idea of your current order book, what percentage, in your assessment, would constitute projects, what the projects would be having these complexity or high engineering skill? Sir, there's... Hello? Yes. Yeah. Actually, the high engineering, high-end engineering projects are really we have that Kerala with us, and there is a huge, big structure that we are constructing, about, say, around 31-32 meters height flyover there. And apart from that, we have Avinashi flyover, which is going on. I think by December, we are delivering that project also. And there are a couple of projects. New projects are also coming from that same region, so which we are continuing participating those tenders right now. And apart from that, high-end engineering projects are coming up from in the city sectors. Like in Hyderabad also, there is a lot of flyover projects coming up, so we'll be continuing participating those. So I think generally, complex engineering projects are more with the NHAI as well as state governments. As I've spoken that, MSRDC, that express highway what we are constructing with, what we are now under discussion is, that is also having high-end engineering structures as well, complex in design, engineering. About 40%-50% of your order book, would that be a correct assessment? I, the pump house, the pump house is going to be a complete, high-end engineering project. So I think mostly it will 60%-70% contributing towards that. 60%-70%. Okay. The second question was on your strategy for BOT projects. You would want to be an investor, or you would just restrict yourself to EPC kind of work in these projects? So that target is to go as a EPC contract, contractor only. But however, if at all, I have to take part for my compulsions, I am open to BOT also. Great. Great. That's it from my side, sir. Thank you so much. Yes. Yes. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. The next question is on the line of Jiten Rushi from Axis Capital. Please go ahead. Yeah. Good morning, sir. So my first question would be on the subcontracting work, which you are targeting to take in the MSRDC, from, for MSRDC project. And again, you said that there could be some BOT toll projects, either you with joint venture or you can take a sub-back to the subcontracting. So in such situation, what kind of EBITDA margin you are targeting? So actually, BOT tolls mean the EBITDA could be as normal as it was yearly. So targeting levels are maybe good only, but we'll have to see end of the day what we're going to deliver. That's very, very important because of the any BOT contract. It doesn't come up with an escalation factor. So what happens once there is no escalation factor, we put around every year overall 5% growth on every year we take it. So on average, around 5%-6%, we will take towards the entire contract size, if you take it. That's going to be around 5%-6%, we would try to be putting it. So if that assumption goes good with that, definitely things are in line with it. Or otherwise, some abnormal changes which are coming up in the input prices and all, like diesel, bitumen, steel, cement, and all other aggregates, sand and everything, then we will have a little bit of setbacks. Otherwise, if everything goes normal, definitely things are in normal, yes, sir. And so the process of taking it, BOT tolls, you know, there is less lot of risk involved in it because, you know, the... So the timelines are very important for them. So definitely, they, they also offer good price to the contractors so that, you know, there should not be any ifs and buts in future for them. Aiming for the good margins only, so I'm entering for to that sector to get the good margins, not if I am need a ordinary project, rather I would win a HAM and I do it on my own. Definitely, that much margin, little bit reduced margins, I'm quite sure of it, I mean it. So sir, is it safe to say that if you go for any subcontracting or BOT of NHAI, you can make, you can make 15%-16% EBITDA margin? And the irrigation project which you are targeting in Telangana or some other segment, AP, if you say, then there will be higher margin? Yes, sir, hopefully. Yeah, hopefully, the target is that only, definitely. So what could be the margin, is there a margin guidance for FY 25, 26? Broadly, I'm asking. I understand difficulty, but if you can highlight broadly. Yes, sir. If the all input prices are normal, definitely we are going to deliver around 16-15 kind of level. Okay. 15%-16%. Yeah. This is also including the high margin irrigation projects? Yeah, yeah. Everything put together only, kind of. Otherwise, I don't have that much confidence to say that. Generally, I normally rate at 13, 14 level only. But still, okay, this time, there is little bit confidence that is there on irrigation projects also to come up and BOT tolls also to do some EPC for them. So all that is of the bit of that feel that I have. Sir, the appointed dates for the two projects are getting delayed. So now what is the reason why it is getting delayed, and what is the target timeline we are looking at to complete the appointed dates for the Mysuru project? Mysuru projects, actually, Mysuru project is pending on the EPC, the environmental clearance. So I think, the tribunal meeting is going to happen, or the board meeting for that EPC is going to happen in, twentieth or twenty-second. I'm not very sure about it, the date and all, but any, any, approximately around that, there is a meeting for them. And once that is through with that, I think, circulation of minutes would take another, fifteen days. Then after that, I think we'll be, we can sort the issues with, NHAI for getting the appointed date. As of now, the land is also in one project it is already achieved about, say, 82%. And second project, around 70% it is there. I think they are quite confident that by this month end, they are able to achieve that also. That's what, PD said with me, with me when I asked. It should be, we should get appointed by October, hopefully? Yes, sir. Yes, sir. Maybe mid of September or October, kind of that. Mm-hmm. And, sir, one more question on the claim, so. Mr. Jiten, we request you to get back to the question queue for any follow-up questions. The next question is from the line of Vasudev from Nuvama. Please go ahead. Yes, sir, I just have some data related query. Firstly, what is our outstanding receivables on the Telangana and the CapEx that we are guiding for FY 25, and what we've done for the first quarter? This, as of date, actually, Telangana certified receivables are INR 600 crore, but with unbilled, it will be around INR 900 crore as of date. Receivables are pending from Telangana. As far as fixed assets is there, this quarter we added around INR 10 crore, which addition has been made in the gross block. Sir, about the CapEx that we are doing? Your voice is not clear. What is? Sir, the CapEx I'm asking. Yeah. The guidance for FY 25 and what is done in the first quarter. Your voice is not audible, sir. Hello? Hello. Hello. Hello. Yeah, yeah. Pardon? Sir, I was asking the CapEx that we are planning for FY 2022, and what we've done in the first quarter. In the first quarter, we did CapEx of INR 10 crore. This year, because as our AD sir is telling that we are trying to get new projects, so definitely based on when, in which quarter we are getting the projects. Based on that, CapEx requirement may change, but if we go in a normalized way, there will be somewhere around INR 80-INR 100 crore addition will be there in this year around. Okay. Okay, sir. Sir, just if you can repeat the standalone cash levels again. Standalone cash is INR 33 crore. 33. Okay, that's it from my side. Thank you, sir. Thank you. Thank you. Next is a follow-up question from line of Faisal Zubair Hawa from H.G. Hawa & Co. Please go ahead. Sir, what is the kind of cash flow from operations and free cash flow that we hope to generate in FY? Sorry, Faisal, sir, can you- Your voice is not clear. Hello? Just a second, sir. Sir, what is the kind of free cash flow and cash flow from operations that we hope to generate in FY 2025? Assuming that we don't win too many more orders. That is one. Secondly, sir, on the consolidated level, we are still having an interest burden of around INR 37 crore per quarter. So is there any way that we can utilize the cash that we are continuously getting from, you know, divestment of HAM projects, et cetera, to reduce this interest burden on consolidated level also? But, in consol level, definitely, we are trying to get some monetization of projects. So, if we monetize the projects, then whatever the debt is there, it is taken care by the investors. So that is something that we are trying to do, and this year actually, at least we will, because one project that is KNR Palani, we already got the PCOD. So we expect that monetization will definitely happen in this year. And other three assets, the monetization is in discussion, and we expect that this Kerala two and three, four, we should get PCOD by end of December, and from there, six months. So maybe by next year, September 25, we should be able to monetize that three assets also. So, as our policy is there, our assets like, we will continue to do the monetization of assets, and based on that, definitely, what are the debt level in the consolidated will be. And also, the free cash flow and cash flow from operations that we hope to generate in this year, assuming that, Telangana payments come through? If Telangana payment come through, there is, you know, will be very much positive, might be more than INR 300 crore cash from operation will be there. Okay. And, has the Telangana government made any kind of, arrangements or banking arrangements to really get the payments through? And, have you made any progress with the court case we had, filed against them? Actually, as far as court case concerned, there is no big developments because it is just we have just placed and it is very early to say anything about it. But I think the dates will come because we have discussed with the Telangana government, and they say they are keen on paying payments by September end, what they said. So let us stick on to it. Otherwise, the court case also gets the dates from September and what September. And so this time, in this quarter- We are taking little time. It is not that to I can I cannot guarantee that things will be sorted with the court case, but the thing is at least they'll have a threat. Second thing, the it's already delayed for 1.5 year. The main intention in placing the court case is that they haven't paid us from past 1.5 year, I think. So there is an accumulated interest also in losses for us. So that we want to gain. That's where we have placed the situation there. And so- Court case is done for that purpose. So it, I'm telling, the department that you pay the regular payments, whatever you can pay, and, after court, the verdict only you can pay the interest. Because they, they themselves, voluntarily, they don't pay the interest back. I think we will hopefully see that September end, what happens. But we can at least get half of the monies? Yes, sir. That's the- And, sir, Half, I think if they pay, they pay the full bill, but they don't pay the interest. That's the... Sir, would it be right to state that, you know, in BOT, at least, you know, there will be only four or five players who are going to now compete because of balance sheet strength? What is your opinion of, you know, so many people who have taken up HAM? No, no, no, no, it's not that, like that. One cannot guarantee about it like that, but, I can say that there should be some sort of sensible bidding. That's it. Okay, because there is no escalation also. Yeah, yeah, there is no escalation. I think, as per the BOT model, then they may not place it as like EPC, how much they are placing like, because earlier, many people have burned their hands in the toll projects. So definitely this time, I don't think people will be there enough to put the bids as they want, like. Sir, any progress with? That's what are the feeling. Any progress with solar projects or we have given up on that? Sir, solar projects actually, there is progress. It's not that right now there is no good bids that are available in the space. I think, I think they are yet to come. New NTPC tenders are likely, they likely to come out and Maharashtra is also keen in energy, because green energy is now required, other more because of the increasing requirement of the power through EVs and other industrialization. So definitely, the power is required. So, and one best source is that to go for these solars. So I think, there should be good rallies upcoming from second, third or fourth quarter onwards. And so within the raw material costs have gone down a lot. So, Mr. Hawa, we request you- Pardon, sir? Sorry, sir. We request, sir, Mr. Hawa, to get back in the question queue for any follow-up questions. Okay, thank you. Yeah. The next question is from the line of Amitosh Kumar from Mastertrust. Please go ahead. Hello, sir. So my question is in two parts. The first part, key part is, so which type of projects give you the highest margins, and do we see the same margins in future? This is the first part, and second part is, what is the size of these projects in your order book? Actually, sir, that is quite difficult to answer right now because, as of now, the order book position you might be knowing it. But actually, we have started a new sectors, then BOT tolls, we want to go, we want to go in the irrigation sector in an extensive way. We want to further go in railway, we want to further go in metros and flyover sector also. So all that put together, I think, it could be possible to 15, around 15 revenue levels are quite possible. That's what we are thinking. If the rates are under control, because everything is subjected to some kind of assumptions only, you know. The entire bid is an assumption that they write away. So on that really, that we should be getting through that. Okay, sir. Okay. Thank you. Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead. Yeah, thank you for taking my question, sir. Sir, my question was, with respect to the metro rail. I think last time you spoke, I mean, you had given us a sense that you had bid for some of these projects in Bhubaneswar, Bhubaneswar, in, JV with NCC. I think the results are already out. Is it possible to kind of talk about how the competition was, I mean, compared to road, I mean, was it, as, competitively? That, that is also a right question. The thing is that we were not anyone. I think we were standing at 10, 6, or some positions in that. So definitely we need to improve ourselves to make things work for us. So we are starting some good consultants who can guide us in such biddings and these areas. So we also need to improve, what I mean to say, and we are now trying to improve ourselves. Sure. And even on BOT side, when you say, I mean, we are open to kind of consider back-to-back subcontracting or go as a minority partner, I think, I mean, there are some of these other companies also, I mean, who start talking about the similar sort of arrangements. So, I mean, when you say we are engaging some of these people, so there again, I mean, how easy or difficult would it be to able to have it in your favor? Because, again, you could have a similar situation wherein some of these other companies could settle for a little lower in terms of margins. So what, what base margin would you want to have, I mean, below which you won't go and bid for these projects? So actually, the back-to-back arrangement contracts, definitely, it's kind of, only that lead fee we are paying and going and doing. So there may not be a big, difference that might come out. But however, wherever there is a, back-to-back arrangement, little bit of, let's say EBITDA we are assuming. Earlier, we used to deliver, I think, above 18 plus. That's why maybe we are discussing at, 15 levels right now. Sure. Just one last, if I may, with your permission. So we saw our net working capital cycle come down this quarter versus last quarter, but despite that, our cash balance has come down from INR 230-odd crore last quarter to INR 30-odd crore. Possible to help us reconcile it, I mean, how did we use this INR 200-odd crore? Because our day-to-day are down, our inventory cycle is down. So overall, I mean, NWC that you report in your PPT is down. So where... I mean, is it that unbilled revenues have gone up substantially, which is where the money would be parked for now? Actually, this quarter, what we did, we did actually, this, we have taken disbursement from our HAM project. So last time, actually, this time, outstanding from our HAM project is just INR 450 crore. Previously, it was around, somewhere around, around INR 700 crore. Around INR 300 crore disbursement we have taken from the HAM company. So that's why with that, this cash and opening cash we have utilized, actually, to pay off our creditors and to release our inventory. So due to this reason, we could able to maintain that, our net working capital. And definitely because, we did actually lot of work actually which has not been certified in some of the projects. So that's why that inventory has built up, basically due to irrigation and some of the road assets. Sure. But, that certification will definitely take in the next quarter, and we will try to maintain that net working capital to the existing level only. Sir, possible to share, I mean, how was the movement in, in terms of unbilled revenue over the last quarter? What, what's the numbers in, at this, at the end of this quarter over the number last quarter? Unbilled, unbilled revenue. Yeah, yeah, yeah. Okay. This quarter will be around INR 743 crore, and compared to last quarter, it was... It will be around INR 494-500 crore. Okay. So mobilization advances, if possible, please. What, what's the number now and what was the number? around INR 57 crores, 57 crores mobilization advances. And another INR 193 crores. Okay, sure. Thank you, and all the very best for future. Thank you. Thank you. The next question is from the line of Parikshit Kandpal from HDFC. Please go ahead. Yeah, hi, sir. My question is on unbilled revenue in the irrigation segment. So you said, I think, earlier, Venkat sir said that it's about INR 900 crore is the total exposure to irrigation projects. Yeah. Correct, yeah. As unbilled. ... So, is it now that the matter is now subjected, so is the client now certifying the unbilled revenues? No, client is not available. Unbilled, the one out of INR 900 crore, INR 600 crore, the certification is there. INR 300 crore is that unbilled. Out of INR 300 crore, INR 100 crore actually, it has been certified in the month of the post quarter results. So as of date, only INR 200 crore are there, which is yet to be certified. Is there the Telangana government, I mean, the department is certifying the debtors? It is certifying. We received actually certification of INR 100 crore, actually. In the this after post, on the first of June, we received certification of INR 100 crore. So now coming to the payments, I mean, the payment comes from usually from state budget. So has this, has the part of the payment or the entire amount, is that, has it, is it now the part of the union, the, the state budget? So how will they fund this? Is that all they have to make payment? But Kaleshwaram package four is still they are trying to get actually bank disbursement, because it is related to the bank funding from the PFC and NABARD. The package three, there is no outstanding. So, but package four is consider almost out of INR 600 crore, INR 577 crore from the package four only. And package four is still they are trying the loan from the PFC and NABARD. So package four is under, definitely under consideration with the banks actually. So once they will get that bank disbursement, they will release that money. Because earlier I remember this was funded by NABARD. So, so you said, I think NABARD is not disbursing the loans, right? So they need to find out new lenders to this project. No, that's what they are working on, because they have that limit of FRBM. So they are working on that, and they have to put their equity contribution to get the disbursement from the financial institution. So when we are discussing with the government of Telangana, so they are telling that they are working on that. And because as you know, that government has its own commitment towards other things also, so they are just thinking how we can resolve it. But we are continuously following, management is continuously following with the government of Telangana to get release of money. When is the last time you got the payment from the government? We got payment in the month of INR 150 crore, we got in month of February, actually. After that, there is no payment. Since February, how much of work you would have- Yes. How much work you have done after February till now, till this August? In case around INR 300 crore work we done, because the certificate 577, they are in March itself only. Because I know what is, what gives you confidence now that you will get money? Because they are not paying so much of time has passed by- Yeah. You're putting in your money. I answer that, sir. No. Sir, actually, so, generally, you know, if they don't want to pay, they instruct us to stop the works. Right. Which they haven't done, that's that feeling, sir. Second, actually, I myself have spoken to the concerned minister also. Mm. He said, "If you want us to continue, we'll continue; otherwise, we'll stop the works, because we cannot suffer this much payment delays." Which, I clearly told him that, "Sir, either you continue or you ask us to close, we'll close it also." That's what we gave him the fair and square option to operate. But he himself said, "No, we're going to solve and we want to do it," because after a project has reached almost 70% above, there's no question that we will ever abandon that, because the state will be the biggest loser if we do. Does that? Mm. That's what he's this thing. So he himself said that word. So that's why we are continuing, sir, and, you know, the overhead is also blocking, everything is blocking. Either we have to close the contract or we have to completely do the contract. So there's no individual option for us to operate that. That's the major issue. That's why we are continuing the thing. Okay. And so the last question is on this Andhra Pradesh. So we've been talking a lot about ordering from that segment. So have you started seeing some bids coming in, new bids coming in, and what do you think could be the realistic number based on your interactions with the government officials and the secretary there on how much awards and what segments they should be able to give in this financial year, and how much you are targeting from this state? So actually, my target is about, say, INR 1,000 crore to INR 2,000 crore only. So lower side, I'm keeping it around INR 1,200 crore, I'm keeping it. Only one project or two projects, because I cannot take, I cannot bet more on that state, as you know that why you know. So that's the thing, sir. And the pipeline concerned, they have come out with the news that they have some, they are starting some village roads and all, with the viability gap methods. Mm. Actually, I literally had discussion with them, that the chief secretary of their, he asked as he called a small meeting to the contractors who are working in that sector. Mainly NHAI contractors only, they called them. So we have given our presentation stating that rural roads cannot be worked with the arrangement of, say, a PPP model, the viability gap funding. Because the major problem will be facing the credits, and we don't know what sort of credits are going to come and what sort of development you want and what will be the cost towards that? So definitely that's going to be rolled out sectionally. So we were proposing that hybrid model. If you have the work fund, you can go for a bid, so any of that, if you go for the village, this thing, normally the grant as by the agencies will be more than 40%. So if it is more than 40%, you have to pay, so pay 40% and go for HAM model, which is going to be more viable for you, and in future, you can, you'll get easy installments to pay. That's what the suggestion we gave, sir. I think hopefully they are yet to come out, come out with that, actually. And the contract size, as you what you have asked, so contract sizes are around, say, 800+ onwards. There are contracts grouped because if PPP model means they have to group a bigger size only. What we are seeing is that, above 800 only, all that projects are there. Okay, sir. Sure, sir. Thank you and all the best. Yeah. Thank you. Next is a follow-up question from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah, sir, consolidated cash is how much as on June? Hello? Yeah, Venkat. Consolidated cash is asking. It is around INR 70 crore, sir. INR 70 crore. Okay. Okay. And, and sir, just this, monetization, so, just, if you can repeat, so we are looking to monetize 4 HAM projects, and then we said that, three will be done, by September 2025, and one when we are, we are looking at. So in terms of the cash, when we are, are looking to get the cash, and if possible, in terms of, a broad range, in terms of the, valuation, how much we are looking at? So that valuation discussion is going on, so that's why, you know, we definitely will get good, very good valuation. But as far as Palani is concerned, that we will do in this year, and other three projects by September 2021. And that because we are under discussion with them, actually, so we will sell that actual value, but we are getting definitely very good value. And this entirely is with the one buyer, the entire four projects? We are dealing as a bulk deal only because for the entire four assets, actually, we will deal with one of the investors. Okay. Okay, okay. Thank you, sir. Okay. Thank you. Thank you. Next follow-up question is from the line of Jiten Rushi from Axis Capital. Please go ahead. Yeah, so thanks for the follow-up. So one question which I have is on the claims part. So any more claims you are expecting in this year, other than what you have received in Q1? Claims concerned, sir, that VSV, we are participating in that VSV, you know, Vivad se Vishwas claim. Yeah. So we have proposed all the projects, what all the pending claims are that are there, we have proposed on it. Certain claims are getting agreed by NHAI, and I think what I've seen that cash flow in lieu of that only. We have some Odisha projects. Odisha projects, one of the claim is admitted and another one is deferred by them. So that is, that we are going with the court. So around INR 25 crore, they have been agreed out of. And around INR 70 crore, they have agreed, I think, from the Odisha contracts. And there is some one more in the AP 07, which is on the Nirmal, you know, Islam Nagar to Kadtal wala project in the Telangana region. But I've got some claims, and those claims are referred to VSV only. So I think NHAI is going for EC in next EC or coming EC. I don't know really, but she is getting informed about it. What will be that amount for this AP 07? AP 07, I think the claim is around, say, 200+, it is. So after VSV calculation, we have to see how much it will be. Sir, you said that Odisha project, one got admitted and one got deferred. The one which got admitted was INR 25 crore, and one which got deferred was INR 75 crore, right, sir? One deferred was around INR 25 crore. The other one admitted is about INR 70 crore. So after VsV calculation, it could be around, say, somewhere around between 15, 15, 15. Fifty only. 50%. Okay. Okay. And sir, this monetization which you said for Palani, we can expect the procedure by end of this year, and the balance will be the Kerala and the other three will be by end of mid of next year, right, sir? Yeah, yeah. Correct. Yes. Okay, sir. That's all my side. Thank you very much. Thank you. Thank you. As there are no further questions, I would now like to hand over to the management for closing comments. Yeah. Thank you all for joining us on this call. Please reach out to our investor relations consultant, strategic growth advisor, or us directly, should you have any further clarifications. We can now close the call. Thank you. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.