Ladies and gentlemen, good day and welcome to Q2 FY25 earnings conference call of KNR Constructions Limited. This conference call may contain forward-looking statements about the company with a view to the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of the 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts from KNR Constructions Limited. Thank you, and over to you, sir. Good morning. Thank you for joining us today on the call to discuss the financial results for Q2 and H1 FY25. Along with me, I have Mr. K. Jalandhar Reddy, Executive Director and Strategic Growth Advisor, our Investor Relations Advisor. We have uploaded the results and investor presentation on the stock exchange 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 industry events post which we will have a question and answer session. I would now like to share our perspective on the significant industry development. In the first half of the year, we observed a slowdown in awarding of the projects, primarily due to general elections. However, the MoRTH has set targets aiming to award project worth INR 5 lakh crore for the current financial year. This commitment gained momentum in September, with project bid pipeline amounting to INR 1.1 trillion, primarily driven by HAM and EPC projects. Looking ahead, the government is also preparing to approve additional highway projects, which could bring the total cost of sanctioned projects to INR 2 lakh crore by the end of December. This robust pipeline affirms the government's commitment to maintaining an aggressive pace in highway construction. Additionally, the NHAI is undertaking several transformative initiatives, including collaboration with banks to implement advanced toll collection technology on expressways. This state-of-the-art multi-lane three-flow system will replace trailing toll collection, removing the need for physical toll booths. Moreover, NHAI is constructing 74 new tunnels across India, spanning a total of 273 kilometers. This extensive project aims to significantly enhance the country's highway infrastructure with an estimated cost of around INR 1 trillion. Lastly, the government's decision to double the effective liability period to 10 years for the contractor of EPC marks a crucial step towards enhancing the quality and longevity of the national highway infrastructure. This policy change is expected to lower long-term maintenance costs for the government and improve road safety and user satisfaction by keeping infrastructure in optimal condition. Ultimately, this shift will support the development of more reliable and sustainable highway networks across India. With this initiative, a strong bidding pipeline, and a diversified order book, we are confident that positive growth momentum lies ahead. Now, coming to the key updates of the company, the percentage of physical progress as of September 30, 2024, for the HAM project is as follows: Magadi to Somwarpet, around 87%; Oddanchatram to Madathukulam, 100%; Ramanattukara to Valanchery, 82%; Valanchery to Kappirikkad, 84%; Chittoor to Thatchur, 77%; Marripudi to Somvarappadu, 12%. As of September 30, 2024, the company has already invested INR 556 crore out of INR 992 crore revised equity requirement for all the eight HAM projects. The additional equity requirement of INR 436 crore to increase is INR 200, INR 120, and INR 116 for H2 FY25, FY26, and FY27, respectively. You can refer to the slide number 27 of the investor presentation for detail on each HAM project. Pursuant to the settlement agreement signed between NHAI and KNR Muzaffarpur Barauni Tollways Private Limited, the company has received INR 317.69 crore, including INR 42 crore of the interest on unsecured loan from the SPV. Additionally, as per the terms of the settlement agreement, the SPV has repaid its entire debt obligation to the lenders, and the project will be foreclosed. The toll collection of Muzaffarpur Barauni Toll Project was taken over by NHAI with effect from 1st of November 2024. On 29th October 2024, the company has signed a purchase agreement with JKM Infra Projects Limited and Mr. Gaurav Dhillon, investors for INR 45.90 lakhs, the company will transfer its entire stake, that is 0.65% in SPV. Further, KNRC Holding and Investments Private Limited, the wholly owned subsidiary of the company, will also transfer its entire stake, that is 100%, to the investor. Now, coming to the order book position, as of September 30, 2024, the company has total order book position of INR 4,406 crore, which can be bifurcated as 52% of the EPC road project, HAM project, whereas 23% of the total order book is for irrigation project and balance 25% is for pipeline project. Clients by valuation is 67% of order book is from third-party clients and balance 33% is from the KNR HAM project. The third-party order book percentage is split between state government contractors as 54%, whereas 11% is for the central government and balance 2% is from the other private player. And we note that this order book does not include contracts aggregating to INR 1,200 crore, as we have not yet received the appointed date for our two HAM projects. If we include this, our order book will increase to INR 5,606 crore. This order book will execute over a period of around one and a half to two years. With the recent election behind us and clear government emphasis on the road and highway development, we anticipate an increase in new order work. We are aiming for order in approximately INR 6,000-INR 8,000 crore for the next year. Lastly, India Ratings has affirmed its outlook on the long-term bank facility as IND AA stable, and also a short-term rating is affirmed at A1+. Before discussing the financial numbers, I would like to highlight that during the quarter, the company has received an arbitration claim from its Orissa project of INR 28 crore, which is included in the total revenue, and INR 43 crore towards interest on such claim is included in other income. Also, expenses related to such claim of INR 93 crore is included in other expenses, and resultant tax of INR 17.6 crore is included in current tax. I would like to further clarify on the exceptional item of INR 15 crore for this quarter, which resulted from two specific transactions. First one is the Patel KNR Infrastructures Limited, our associate company, bought back its 3,271,161 shares held by the company for a consideration of INR 8.9 crore. Accordingly, the resultant profit on such buyback of INR 5.6 crore that is included in the exceptional item in the statement of its consolidated profit and loss. Secondly, the company has made a provision of INR 21 crore towards the receivables from Cube Highways and Infrastructure Limited, which includes in the exceptional item. This was due to the non-fulfillment of some of the conditions of the SPV executed between the company, Cube Highways, and the respective SPV. Now, let me take you through the Q2 and H1 FY24 consolidated financial performance first, followed by the consolidated financial highlights. I will start with the quarterly highlights first. The revenue for the quarter stood at INR 884 crore. EBITDA for Q2 FY25 is largely stable at 1% degrowth stood at INR 163 crore as compared to INR 166 crore in Q2 FY24. EBITDA margin in Q2 FY25 is 18.6%. Net profit for the current quarter was INR 334 crore, as against INR 100 crore in Q2 FY24, registered a growth of 235% year-on-year. Now, coming to H1 FY25 highlights. The revenue for H1 FY25 stood at INR 1,764 crore. EBITDA for H1 FY25 grew by 5% to INR 357 crore, as compared to INR 339 crore in H1 FY24. EBITDA margin in H1 FY25 stood at 20.2%. Net profit for H1 FY25 was INR469 crore, as compared to INR 210 crore in H1 FY24. The adjusted turnover, EBITDA, PBT, and tax for the quarter and half-year ended is INR856 crore, 16.12%, 14.94%, 10.92%, and for the half-year ended, it is INR 1,675 crore, 16.33%, 14.44%, and 10.4%, respectively. Now, coming to the consolidated financial performance, I will start with the quarterly highlights first. The company recorded a year-on-year growth of 87% in the total revenue from INR 1,038 crore in Q2 FY24 to INR 1,945 crore in Q2 FY25. EBITDA came in at INR 870 crore in Q2 FY25 from INR 232 crore in Q2 FY24, a growth of 276% year-on-year. EBITDA margin in the current quarter stood at 34.7%. Profit after tax stood at INR 580 crore in Q2 FY25 from INR 143 crore in Q2 FY24, a year-on-year growth of 306%. Moving on, H1 FY25 highlights. The revenue for H1 FY25 grew by 45% year-on-year to INR 2,930 crore. EBITDA for H1 FY25 was INR 1,148 crore, as compared to INR 447 crore in HY24, registering a 157% growth. EBITDA margin for H1 FY25 stood at 39.2%. Net profit grew by 170% year-on-year to INR 746 crore, compared to INR 276 crore in HY24. Now, moving on to the net debt on the balance sheet, the company continued to maintain a strong balance sheet. The working capital days is at 71 days compared to 78 days as of June 2021. The consolidated debt as of September 30, 2024, is INR1,420 crore, as compared to INR 1,258 crore as of March 31, 2024. The net debt to equity on consolidated basis is as of September 30, 2024 stands at 0.33 times, as compared to 0.36 times as of March 31, 2024. The increase in consolidated turnover and PAT is due to pursuant to the settlement agreement that the KNR Muzaffarpur Barauni Private Limited was entitled to receive a settlement amount of INR 961.38 crore, which is included in revenue from operation, an amount of INR 342 crore accounted towards EPC claim, which is included in construction costs, and INR 49.61 crore towards the interest, which is included in the finance cost, an amount of INR 221.83 crore of intangible assets, which has been amortized and included in the depreciation and amortization expenses in the consolidated statement of profit and loss. With this, we can 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 the 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 will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Thanks for the opportunity. My question is, what is the pipeline of tender of EPC and HAM? Sir, your voice is not audible. Sir, is it better now? It is better, yeah. Thanks for the opportunity. My question is, what is the pipeline of tender from NHI for EPC and HAM? And can you also help us with the pipeline of EPC? Actually, the pipeline in the sense there is nothing considerable that is there in pipeline kind of thing, but there have been around 80, 85 tenders which we have studied on NHI itself. So the 80 tenders which we are straightaway focusing, and these are getting postponed. Actually, there are certain tenders that were supposed to happen in this month, but many of them got postponed by 10 days, like, and kind of a month. So the gap is a little bit building up there. We just asked them why the delays that are happening. They said that the acquisition of land is not adequate. So until they achieve the 80% land position, they would like to hold these tenders. That is what NHI is doing right now. So probably the second thing is after the new government has taken over the power. I think a considerable rally is not started by them. So maybe March quarter, yani fourth quarter of this year, could be flooding with all these tenders. That's what I'm thinking because there is almost four and a half months' time that is there. So it may start from January, February. It happened also earlier also similarly. So even NHAI is expecting them that from January onwards, the tenders may partially start to keep on pulling up. And the peak will be in February and March. I think we'll have to wait for that sort of window wherein many tenders that come up, and at least we have studied 80. On 80, definitely we can try to get five to 6,000 a year. And some state governments also we have studied, and those tenders are apart. Anything expected for the BOT? Actually, BOT, we are cutting the terms with other players, and those also we would like to go on. As an EPC player, we had a discussion with Adani also. They were also under discussion with us for a few projects, and Cube is also there. So whatever it is, we will give an exclusive for them, and we want an exclusivity from them. But these two are being now under discussion. In the sense that actually there are terms between. The initial discussions are over for the Adani projects. So definitely we may strike some projects. And Q has already given us the MOU. Only we have to see the opportunities and participate. Understood, sir. My second question is the EBITDA margin. If I subtract each of the notes account for INR 27 crore and INR 60 crore, respectively, for two notes accounts, the EBITDA margin comes at 12.2%. I think it's one of the lowest EBITDA margins. Am I right? No, no, no, no, sir. For the half-year, it is 15%. Adjusted with all the adjusted EBITDA is 16.33%, sir. For the half-year? For the half-year, yeah. My last question is on the employee expenses. It looks to be slightly higher side compared to in the last three or four years. Which expenses, sir? Employee expenses. Employee. Actually, employee expenses are the same only INR 43 crore, but this quarter actually, as you know, we have paid variable pay to our directors amounting to around INR 9.9 crore. So due to that reason, this quarter it is increased, but otherwise it is in the range of somewhere between INR 41 crore to INR 42 crore per quarter. Understood. Thank you, Mr. Sir. Thank you. Thank you. you. Okay. Thank you. Thank you very much. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Hi, sir. Sir, continuing the same thing. So for us, the order inflow is the main concern. So just trying to make understand further. So when we say 80-85 tenders that we are looking at, if you can help us in terms of what's the value, and this is only the NHI one, and in terms of the HAM and EPC is how much. So that is first one. And second, maybe if you can also elaborate in terms of the MSRDC, what we are looking at there. Yeah. So first on that. Actually, MSRDC we are under discussion. You know, under discussion with Navayuga. Navayuga Constructions is there. They have three packages in Pune this time. They were offering one project to us, which is under discussion. We need to examine the case and come back to it. Then one, we have already given an MOU with that Patel. This tender bidding we have done to Patel, Patel Infra, so if they get the job, definitely we will be placing that, so each is running around INR 2,000 crore plus values only. So that is one aspect. Second, as you asked that 80, 85 tenders which we have studied, sir, actually the quantum have not totally summed it, but the projects are varying from INR 800-1,600 crore. The max is 800. The minimum is 800, and 1,600 is the max. So those are the ticket sizes which we have sorted. Very few are there in 600, 650 level, but most of them are above. Okay. And roughly in terms of the EPC and HAM, would it be how much? 50-50 would be out of this 80-85 would be HAM and EPC? HAM, sir. As for HAM only. Because EPC from NHI, I'm not hoping anything out of it. I'm really focusing on some Tamil Nadu bids in flyovers and all. Flyovers and somewhere in even near some highway projects are also likely to come which we have examined from their department. So we are waiting those tenders to happen. Once they happen, definitely we'll try to grab some out of that. And apart from that, we are also thinking that some projects, whatever EPC mode projects which Adani's or this Cube Highways, which we have already spoken of, those are also sorted, and they are running live. Okay. So this MSRDC, Navayuga, just to clarify that one project that we are looking at, so that itself is close to 2,000 crore, and even for Patel Infra that we have an MOU, that value is also close to 2,000 crore? Yes, yes. Okay. So let's say if we already they've got the job, and from there we are discussing. So the price between us and them should be finalized. So we were waiting this let election go because we don't know which government is going to come in Maharashtra. So what would you say? Who's going to come? Yeah, yeah. Okay. If they like to continue that, then it is good. Otherwise, if there is any chance that they may grab this project because just before the election, they have already given LOAs on this. So a little bit dilemma is there, but still I think I'm a bit comfortable. Things will happen like what happened in AP and all. Only AP is an exceptional state where developmental projects have been hampered because of political movements and all. But I don't think such things will happen in Maharashtra. We'll have to see. Yeah. So sir, just to come back, so let's say if we get this 6 to 7 to 8 thousand crore order inflow that we are looking at, and I think the revenue most likely to start in the next FY 26 next year. So this year, so two things to understand. First, this year already in 1H, we have close to crore revenue is 1,675 crore, 10% down. So for full year at a crore revenue, how much we are looking for FY 25? Assuming that we get the INR 6,000-8,000 crore order inflow by March, so in FY 26, how one can look at it in terms of the revenue? Sir, actually FY 25, I am expecting that even we grab the job in the last quarter of this year, so there is a six-month gap that will come up. So by the time we'll have to see that all the two quarters, we have to completely finish all the order book, whatever we have. And after that, how many jobs which are coming? Actually, if you take this if Maharashtra is successful, if I say, Maharashtra is successful, that can start in two, three months only. So first quarter will leak, second quarter will start. There could be some rains and all, but we will start in the second quarter. But HAM projects and all, it can be taken up in the six months later only. Because now they are coming up with 80% land, I don't have that dilemma as I have in that Mysuru section. So certain dilemmas are not there in that. So we can better start in six months. So that preparatory work will keep it in very strong way so that we try to hit the thing. But sir, these are all assumptions, very, very assumable things. So I rate a little less only in the coming year also. So maybe that we may have to bear with that. And after that, I think things would be good. Sir, still not able to understand, still trying to understand. So this year, can we do close to INR 3,400-INR 3,500 crore kind of revenue? And assuming as okay, okay, got it. And for next year, let's say, as you said, even if we start the HAM execute. 4,500, sir. No doubt we are targeting for 4,500. Provided this order book at least 5 to 6 thousand is expected. Okay. And the margin could remain the same. 16%. A little bit guaranteeing, but second last two quarters, we will rock and we'll be that. And then at margin level, 16% can be maintained. It's difficult to say because all the new orders which are coming. So Abhishek, since we are placed at bid and I win the bid, as the market, then only I'll be able to answer this question. But we will try. See, the thing is we tried our best in the industry as of now, so we will focus to have that. Okay. Lastly, sir, when these pipeline projects, 1,100 crore to start in Hisar and two appointed date, when that appointed date would come? And lastly, on the CapEx front. Two months to go, sir. Actually, that was environmentally cleared and I think in another one month it would come. So there will be formality to close. One month they are saying, but I am initiating within two months we should start the job. That's what it is. For pipeline or for the two HAM projects that we will be expecting the appointed date? For HAM projects, two months appointed date and for pipeline projects, when the execution will start? Pipeline projects will start at the time. Okay, okay. And because I think there have been certain stage-wise constructions already, unless we achieve that stage, the payments are not eligible in that. Okay. Lastly, if you can touch upon the. It is an 11% job. I think upon reaching the 15% of the project value, we have a milestone to get paid. Like that. Okay. And lastly, sir, irrigation payment, when we now expect, because last payment we have received in February, so I think the outstanding is more than INR 1,000 crore. So when we are expecting. INR 900 crore. It's worth INR 900 crore. I think, no, what happened actually, whatever it is built is around INR 740 crore is built. Sorry, INR 740 crore. INR 740 crore is built. And this bill, it is not recorded. I mean, we were insisting on them to record the bill. And we've been giving continuation letters to record the bill. But since the payment is not accessible to them by that loan component, so they are just looking at certain issues are there. I think if they resolve that loan issue, then these things will be resolved. I am hoping, sir, very uncertain it is. I can say within two months it can be solved, I think. They are saying all that department and even we met the minister also, he said he will try to solve it in one two months. So that's two months and we will see. Got it, sir. Thank you and all the best, sir. You're welcome, sir. Thank you very much. The next question is from the line of Raveen Naredi from Naredi Investment. Please go ahead. Thank you for giving me the opportunity. Sir, how many more claims are pending with NHI or other authorities? How many? Claims pending. Sir, most claims are done. One claim will come. One claim will come in this quarter. That 80,070 which is there in HAM project. Sorry, not HAM. HAM annuity mode project whose claim has already come in this quarter. So this quarter we'll be having that also. So after that, I think we have very good. How much claim will still come in this quarter? Around INR 130 crore will come also. INR 130 crore. And it will go over in income only, right? Some part in income, some part in other income that we are working on. Okay. Sir, you are such a knowledgeable person about road construction. Sir, tell commentary on road projects from NHAI, how many kilometers they have sanctioned and how many more kilometers will come in this financial year 26. Can you give some commentary? It will help you. Yeah, yeah. That's recorded there. Yeah, yeah. Okay. So So actually this year they have targeted around INR 5 lakh crore actually in the current financial year. That is a more target. And out of that, around they have sanctioned for INR 2 lakh crores by end of December. Okay. So this is a lot of projects are there actually, which is yet to come actually. Because almost last one and a half years, not much project was awarded. So we are expecting that definitely in Q4 actually, some definitely a big rally will come. So we want to capitalize that rally actually. Okay, okay. So you mean to say maybe 3 lakh road project maybe come in the quarter four? We are expecting actually. But we will bid only where our margin is reasonable, right? Yeah, yeah. That's why we are working on that actually. So definitely we will look into that. Okay. Thank you. All the best, sir. Thank you. Yeah. Thank you very much. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Yes, sir. Good morning, sir. My question is on the irrigation revenue. You have to go ahead. We'll not come up with that. So first thing is that I can see you have approximately 520 crores of cash in the consolidated. So that is the right number, right? Investments, current investments. Yeah, yeah. This year, for September, our standalone cash is around 347 crores. And consolidated cash is, sorry, 247. And consolidated cash is 460 crores. 460 crores including investments around 520 crores. Yeah, yeah. Investment is yeah. So my question is, if we were getting the receivables on time and once we realize all this INR 900 crores of receivables which you pointed out, so in terms of billing, the pending was which in terms of progress and the receivables which is due. So how much of this would have been the cash if these receivables were coming on time? So how much of the receivables are overdue against the timelines? For the month. We only accept irrigation. I think we don't have anything else. Everything is on time. That's why we are surviving otherwise. We have INR 435 crores receivables from the pending from the HAM project. But we are not drawing because we have the surplus cash flow in the parent company. So this 435, any day we can draw it. Only around INR 600 crores is certified receivable as of September. That is only due actually. On that measure is a package four. From irrigation, I'm asking INR 900 crore, how much of receivables are overdue? I mean, which if had come on time, would have resulted in cash sitting on our books. So how much is that number? So you said INR 4 35 crore. Almost INR 600 crore actually. INR 600 crore from there if it gets realized and INR 400 crore from HAM, so it's about INR 1,000 crore, then you have another INR 500 crore. So totally INR 1,500 crore of cash would have been in place if you were going through a normal course of business, right? Yeah, yeah. Correct, correct. So what can you do with so much of cash? Once in six months' time, you get access. What can you do with cash? Because we have to put, sir, you know, lots of BOT projects are coming as well. Advertisers are coming. We have to run our business only. And nowadays EPC, so you may forget about EPC because EPC is very, very worse. So we have to focus more on this HAM project as well on this BOT toll. So I'm seconding you with another irrigation too. If all that comes, we will be comfortably running the company without any hazards and without taking additional debts or anything. That's what the plan for going forward. And we will have a growth scope also. Since we have here, we are sitting on a cash pile, we can focus more on whatever the appetite we have, we will go up to that limit and we will try to do the business. The only thing is that you are making the platforms with Cube or with Adani on one way where you will need not invest in BOT so much. You will convert it into EPC. Adani is asking us for participating in the partnership also, but also we are examining that a big guy to participate. Other than that, we are spotting another method that anything below INR 2,000 crore tender, and that too which has good potential. We would like to also participate in those tenders alone and try to do alone, and as we did in the earlier that Walayar, Muzaffarpur, all that we want to do in the similar package. Okay. So what is the standalone debt right now, sir? Sorry, I missed that number. Standalone debt and nothing is there. INR 2.95 crores there, sir, as of September. Cash, I think we should be starting because we are not able to grow now and maybe we have structured our business and we are only into roads and we are not making any serious efforts to diversify beyond roads. So many quarters we have been talking about. So I think it's better we should distribute some of this cash as well as realized as stepping up dividend or maybe buybacks because. Sir, actually hoping you know what it is. See, even today if I focus on one BOT project whose value is around, say, 2,000 crores, a little bit below that only, I want to look at it. It is 2-3 if I take. 30% is the equity which we have to put. Sir, एक दो प्रोजेक्ट में निकल जाएगा, सर, हमारा जितना भी क्या. But anyway, we under rotation. And it is good diversification also. But sir, then diversification need to be after C, right? Because of वहां पे. For irrigation, sir, for diversification, sir, you tell me, sir. You I have examined. I had gone into solar, gone into metro, everywhere that this guy heads. The center's expense didn't even come out. The situation there is so worse. Okay. And even for railways I had quoted, sir. Railway is also worse. Okay. And sir, when you say. At least some life is saved, so at least highway because we know everything. So now I want to stabilize my business through these BOTs, tolls, and annuities. And then I look at something else. Because under panic, if I start looking now, I'll be going wrong which I'm thinking also. I mean, not that I'm not examining the cases. I'm examining the cases, sir. I think I have rejected. I have already last time I told you that one CETP project was there. It was quite a big project. Actually, INR 5,000 crore worth of contract was there with the hands in that fellow's hand. He was asking for a wrong price. So we couldn't go because our return on equity was very less. So we have offered one price and we left it. Because he is not coming to our price. I don't want to take something with a lesser this thing, sir. Actually, the EPC project what happened is he was showing wrong cost in the maintenance, which we caused. And that he is not agreeing to. And we have proven him also. So then he wants to cheat us. So then we said no. He started cheating now itself. If we can go in partnership, then things will be wrong. But this project will be examining. I mean, every good field, whichever available. Sorry, what project was this? CETP, sir? CETP. Actually, you know, pharmaceutical waste treatment. It's a wastewater treatment which we do. STP. STP project. That project we have examined actually. One company called Mother Earth. That is a 50% stake to Silkelia Aethoserotomy. We have examined that case and thought of what the wrong pricing was. Evaluation was not fitting into our business. Just for actual maturity to recover the receivables of 900. So last time I think on the call you said you will take it legally and now you're saying again the loan is. So now this project is only the funding of this project is only dependent on the loans or can it also be met through the budget which is support from the government? So how will the payment come? I mean, what? Can I hear you properly? Can you speak louder, sir? Can you hear me now? Is it better? Hello? Yes, sir. I was saying that you had last call you had said that you will maybe pursue legal options to recover the irrigation receivables. So beyond that, what is the progress on that? And you also mentioned that the minister is saying that in two months some resolution will happen. So will the funding of this project only be dependent on loans or is there any possibility of any budgetary support, supplementary budgetary support being provided? So what will give us confidence that the project recovery or the collection is on track now? Sir, actually the irrigation it is completely political here. What is happening here is completely political. So we met for this, we met the chief minister also and we told him our issues. He instructed the irrigation ministry to consider in pursue the loan component also. I think last time we, I think it was then that yes, sir, those two months of time given by that Uttam Kumar Reddy. I mean, within two months will resolve that, what it is told, sir. Generally, it is out of our hands but we are completely vigorously pursuing that case. It's not only me that Megha is there and Navayuga is also pursuing there for their payments. So we are all together fighting for that actually. And have you slowed down the execution on the balance on the book? Like how much of the revenue this quarter and for this year, how much is the projection as for the current collections? Overall, we are definitely last year we did INR 4,000 crores. This year we are targeting because there may be some shortfall. So we may touch somewhere around INR 3,500-3,600 crore turnover in this year because whatever our existing projects are there, like Kerala project and everything, almost 80% work is completed on the book. So all the projects by March 25, we should be able to complete and we'll achieve somewhere around INR 3,500 crore turnover. Sir, irrigation का पूछ रहा था मैं. इस साल. Irrigation का तो. Irrigation का तो how are you looking at now? Actually, this quarter also we did actually. In irrigation, around 17% we did actually. Around INR 150 crore of turnover. So same turnover definitely we will do. On the balance, the order book is there almost. Irrigation is INR 900 crore from these two projects actually. Package 3 and Package 4. And one is that anyway, this our pipeline project that is anyway it will start working, giving billing from Q4. But out of this, the INR 900 crores will definitely actually around 150, you can say. We will do around INR 150 crores of the turnover definitely from this project in every quarter. So that's the thing here. But still, we have to exclude because what is happening if we stop our machinery and because ultimately it will become cost to us. And we have already going through legally and put our claim through court also. So we are making all our efforts actually. We are talking to the MoRTH and as well as putting all the legal efforts. Both the way actually we are going. But we cannot completely stop the work actually. We will slowly exclude the. What happened actually to stop the work, I would like to add two words here. See, the situation here is that almost we have given an order for that all pumps and motors. Everything, and I think three pumps, three motors have come and they are on our assembly, and one more to come. The last hour, if we do such thing, definitely we'll become defaulted in progress. We have only left way. Only the way we have left with is that you do the work and through court also we can fight for that once we finish the work. That is where a little bit we have to think on it and do it, sir. You know, everything is mobilized, the equipment, everything is there. If you don't do the work, at least that revenue doesn't happen. So once completion is there, once they do the completion, definitely at the back end for commissioning and all, we can start, then you get there and do the commissioning. We can even get a stay from court. Of that, the courts will give us very clear direction. Okay. Last question, sir, how much was the total order inflow in this quarter and what is this pipeline? So then you can elaborate a little bit on the pipeline project? This year, no order. INR 11 crore pipeline के लिए कोई considerable pipeline है नहीं, sir. नहीं, INR 1100 crore की जो pipeline project है, उसका पूछ रहा हूं मैं. Actually, this year we have not received any orders this year. This pipeline project that INR 1100 crore. That is actually, that is KNR's EPC work for the project. I think 15% pay we will be getting eligibility to get paid with that. I think the funds are available. I think they have been getting funds from central government for projects. These are Jal Jeevan Mission projects. Yeah, AMRUT 2.0. Okay. HAM. Under 25% funding by the central government. Under 25% this project is awarded. And 25% by the spending of the state? By the state government, yes. Is it funded? But this project is financially, funds are available for this project. Yeah, further they have already budgeted actually because central government is there. That's why they have budgeted this project. So there won't be any payment issue for this project. Okay, sir. Sure. Thank you, sir. Hopefully, they don't divert. Thank you, sir. I'm sure. Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two to three per participant. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead. Thanks for the opportunity. Sir, out of the 1,000 crore irrigation order book, what is the unbilled portion? Unbilled will be around 400 crores is unbilled. Sorry, 300. Around 400 crores is unbilled. So incremental revenue put in should be actually around 700 crores. We should less around 600 crores. Yeah, yeah, yeah. Correct. Incremental revenue will be around 600. Okay. But secondly, what is the outstanding irrigation receivables? Receivables are 600 crores is there. And then the total number? It is 900. Including unbilled everything, it will be around 1,000 crores. Sir, last time we indicated that we are looking to recover around INR 300 crore in Tharkom, sir. So what's the status on that? That's why regarding irrigation receivables, that's why we recently actually our management here discussed with the irrigation ministry. We are expecting in the next two months actually we get paid off actually. So how much we are expecting in the next two months? In fact, actually what are our entire INR 600 crore actually we are expecting. During discussion, we have asked for full payment to be done because now the project is under completion also. Almost 85% is over. Only 15% will be executed. So with that holding also busy, it's in the situation that I cannot go back or I cannot stop like that. Things are like this. So definitely we have spoken to the minister. I think they are resolving what they are saying. The loan components, at any moment it can be resolved actually. That's not a big deal also. Only some margin money they have to pay for which they are not doing. So I think if they do that, I think things will be best. It will go good. So in that, we have asked three months we'll pay it off. Okay. And sir, on the inflow side, we guided for INR 61-81 crores of inflow. So that is for FY25, right? Yeah, yeah. Correct. Okay. And sir, in terms of execution, we are saying there will be a decline of around, say, 6-7% for FY25. So can 26 be a good amount of growth given the lower turnover in FY25? That is based on what we told. Based on if we are receiving projects like MSRDC, other EPC projects in Q4, so definitely we could be able to do better in the 26. But if we are getting mostly HAM projects, then again it will take further six months to financially close and after getting the appointed date. So that's why 26 we have to really see in Q4 how much project is coming and in which sector, whether EPC, HAM, or BOT. So based on that, 26 revenue we can be able to tell it. How much we will achieve in 26. If after for the pipeline order, declared that 15% is the 15% we can start doing the revenue milestone. Can we reach that milestone by Q4? Or it will be next year? Yeah, we can start in Q4. We will achieve milestone in Q4. Okay. Okay. Thank you, sir. Those are my questions. Thank you very much. The next question is from the line of Vasudev from Nuvama. Please go ahead. Yeah, thank you for the opportunity. Just one question from my side. What is the CapEx that you did in Q2 and how much are we planning for the second half now? Actually, so far we did in Q2, we did around INR 40 million only. So for six months, we did around INR 300 million only. So definitely next this year we are not really seeing any CapEx we are going to incur. But what are the project in Q4 is we are getting some project of the Q4. Based on that, we will really see. But based on current, whatever the order book is there, for that not much CapEx is required. Okay. Sure. Thank you. Thank you. Thank you very much. The next question is from the line of Faisal Hawa from H.G. Hawa and Company. Please go ahead. So sir, when we are now looking at taking Andhra Pradesh orders and even Telangana more orders, so are we now changing our stance that we will now be a little more flexible in late payments and the usual difficulties associated with state government and so on? Second, sir, does our now increased cash balance increase our chances a lot in the large ticket BOT orders? And third, sir, when do we plan to sell our projects to Cube or whoever else is interested for Kerala and other ones which are going to complete? What is the kind of return on equity that we are expecting on these projects? First one is regarding, sir, what, sir? Just that. We are going to now bid a lot for a lot of these Andhra Pradesh development projects and Kerala projects and even Telangana this new river linking projects. So even for Telangana works. So these state government payments are usually not on track and there's a lot of follow-up to be done. So is the management now taking a change of stance that we take that kind of headache and still try to get the orders? AP, we are expecting projects. They may start coming up in up to a couple of months onwards because I think they are budgeting some amounts and the government is also sanctioning them some amounts. So with all that, they will start something and tenders will happen in a couple of months. So maybe that is also expected by March end only. So that I think I heard about, sir, INR 20,000 crore worth of contracts may come up from that in this year. So we are not actually, sir. The main purpose of aiding these state governments is actually, see, they are very eager in developing their state, Telangana, sorry, Andhra Pradesh. And if they don't pay, their development will stop and they will not be able to do. And we will also go for a strategy. They are doing it. We only invest 10%. If they don't pay for that 10%, we'll stop doing it. So that things are like that. So we will have an alternate work so that we will do the first transfer. We will do the first transfer. We will do the first transfer. We will transfer the projects, equipment around to the same state. We are running projects out there because we have HAM projects out there, other projects out there. There we can double the resources and speed up the state government projects. So that can happen. So state governments are focused in focus because of the EPC mode only, sir. EPC is always give us more cash flows and working capital is also less in that. So when we submit to sell our HAM projects and what is the kind of return on equity that we can make? Because I feel that it will add another, I think, 150-200 crores extra cash flow to us whenever that comes. Sir, we are discussing with the prospective investors, sir, regarding the sale of our four HAM projects. Out of that one project, that KNR Palani, that is our project. We already got the PCOD. Definitely in March, actually, we should be able to close that project. And other three projects also because we are expecting that we will receive PCOD in March, so it will take further six months from there. You can say by March 2026, actually, we could be able to sell off our four BOT assets. And return is definitely better than the last what we did in the last. But the return will be definitely quite good, actually. After the last deal. What is the actual we have invested in these four HAM projects and what do we expect to get out of them in March 2026? We have invested somewhere around INR 500 crores, actually, INR 550 crores in these projects. And we will definitely achieve better than our previous deal, actually. So at least INR 800 crores should come out of that. We are just discussing with them actually. But better than the last deal, what I think. And sir, I missed about the Adani JV. Are we saying that we will do it together with Adani for most of the TOT projects and they will also put up money and so will we put up the money also? They were asking for that and I'm not a little bit thinking on it because they are big people. So do EPC take away your money and then that's better. Having 30 years, 20 years relations for BOT projects is going to be a big tough, I think, struggle for us, I think, to say. Very big people, nah. So tomorrow you don't even get an appointment to discuss anything further with them. So in fact, the thing is so EPC is okay. Do the work they pay you and that's what we can walk out with our things. That's what I'm thinking. You would prefer that you would just do the EPC for them? EPC bid to them. Wherever there are INR 3,000 crores, INR 2,000 crores, INR 4,000 crore projects are coming. These are the BOTs are now going to be in a big size. But the competitive intensity is also going to be less when previous players are only going to participate because those big guarantees are costly for them. So the damage will be small. Now our competition will be only IRB and very, very big companies. Very big companies. So BOT told me all these people will be getting filtered. Those many people will not come. Correct. So So we also INR 2,000 below, we want to participate ourselves. Second, we even want to think of doing EPCs for the major good players. We will give pre-tender EPC bid to them and they will exclusively. If they are signing exclusively, it is fine. That's what we are thinking. Correct. But more on an intangible because this is one of the first times in the last 8-9 quarters that you were very relaxed and quite optimistic about getting orders. So can we dig more into it? It looks that this time you are very confident of getting most of the orders through? It is all assumptions only. And for that, I can say that I'm very confident in getting one project at least. I'm struggling to get two projects, but at least one I'm going to get from Maharashtra, say about INR 2,000 crore kind of thing. But that will be a subcontracting only. Second, about 80-85 projects which we have studied in these HAM projects. We are quite confident of getting at least INR 4,000-5,000 crore out of that. Even BOT tolls we are participating. So around INR 2,000-3,000 crore easily we can make from BOT tolls also. Maybe period of time may increase, but that is possible. Second, we are also hoping certain projects from Tamil Nadu section. There are EPCs and flyover projects are coming. We are now completing our Kolmotur flyover. So right before that, there are tenders coming up. We are already placed. We will be definitely participating in those tenders and we will try to get the jobs. At least one two jobs we get whose size is about, say, INR 1,000-500 crores. So INR 1,000-1,500 crores. That will be the thing. AP I'm aiming at least INR 2,000 crore AP I'm aiming. Department also may come up with certain tenders which are bank funded or something that we are also looking at. In the department, we made an inquiry that Ladakh is going on very serious on a few projects. We will be trying to participate. Telangana. Telangana also, there is some irrigation project. There is one road project. There is some talk of getting very big river link projects. Time may vary first. There is some talk of some very big river link projects also coming in Telangana just like Ahmedabad. Yeah, yeah. That is also likely to come. Yeah, I'm gearing up myself to participate in some of the STP projects also from there. So we are qualified for that? We have to take it JV. We can qualify for that river link project? We have to go with JV. JV is only. For STP project, we have to go with JV. Okay. Thank you, sir. Wish you all the best. Thank you. Thank you very much. The next question is from the line of Subrata Sarkar from Mount Intra Finance Private Limited. Please go ahead. Hello. Yeah, sir. Yes, sir. Actually, my question, I think you have partly addressed it. My point was like since we are not finding this entire road sector as of now that attractive, why we are not trying to diversify into other areas? Meaning that I believe we should have capability to address other areas also. I suppose you have addressed partly, but still if you want to add something. Yes, sir. That's what I said. So in between, first of all, we would like to see the scope is there here. If you go for irrigation sector, it is very seasonal. If you go to railways and all, there is some contract, but the overcrowding is there and given the lesser margins are observed there. But if you focus on highways in NHAI, first thing is that the HAMs and all a little bit sensible bidding may happen. That's what we are thinking. Better than EPC mode of contract. Second, we are thinking that toll projects could be having good margins than the HAMs. So there is bright scope that we can get some stabilization on this thing. Right now, we have very less order intake currently. I do agree one year visibility is also not there as of now. So we were thinking to stabilize from our own captive field what we have. And then later we will also think of diversifying into several sectors. As I rightly said, we have examined quite a few other diversification sectors also. Like I said, CETPs we have examined and all that. So there are the struggles are on there. But definitely if we are successful and the returns are company, returns are safe, definitely we are going to put in the money and we are going to do it. We'll appreciate it. Thank you. Thank you very much. The next question is from the line of Abhishri Bang from JHP Securities Private Limited. Please go ahead. Hello. I'm audible? Yes, please proceed. So sir, actually I just have one request. If you would please come up with a comprehensive slide on one-offs which would give us like-to-like comparison on financial performance. That would be very helpful for us. Actually, we have given the detail actually in our listing permit note. But okay, if you want because this is all of one-offs is there in one quarter only. It may not be in the next quarter. But if you want any clarification, you can reach us or our investor advisor. We can clarify you. Okay. Okay. Thank you. Thank you so much. Yeah. Thank you very much. The next question is from the line of Uttam Kumar Srimal from Axis Securities Limited. Please go ahead. Yes, sir. Thanks for the opportunity. Last time you had mentioned that you had bid it for an irrigation project which is with NCC. So what is the current status of that? That is NCC. That is we have bid it at Metro actually. That is Metro project in the Bhubaneswar. We have not got actually. We are not the L1 on that project. Okay. So sir, what is the current situation for being in the Andhra Pradesh government? The new government has come. Are you seeing any meaningful order coming from the new government? Yeah, yeah. The Amaravati Development Authority is now being formed. Earlier it was scrapped. So now they are starting from scrap. So it is taking some time. That's what they are saying. So I think in a few days from now, I think a few months, within two months, I think they'll be able to call the bids. And because they are getting allotment from the central government as they are helping the central government to be in power, so they will likely to get more funds also. So sir, what kind of bid will be there if you can quantify that if you have some information on that? I heard about INR 20,000 crores. Around INR 3,500 crores they are budgeting themselves. And INR 50,000 crores were committed by the central government through some bank loan or something. So there are all proposals have been now prepared. Around INR 20,000 crores is in their flow. They are also tying with the World Bank and ADB also for funding up. Yeah. It will be sir. Basically the road or irrigation or it will include everything. Consider. Consider. That's what there is a news. A news, sir. Okay. Okay. Okay. That's all from my side and all the best. Thank you. Thank you very much. The next question is from the line of Abhishek Dipadiya from ICICI Bank Limited. Please go ahead. Nothing, sir. My query is regarding the NHI dependency on the overall order book. So what is our currently we have around 4,406 crores of order book. So what is our NHI project or dependency project approximately? Out of that almost NHI related project is around 42% actually. 42%. Okay. Thank you very much. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Namaskar, sir. And thank you for this opportunity. Firstly, you alluded to this INR 1,100 crore pipeline project. If you could just dwell, sir, what is the scope of work here and which segment it is, this pipeline related to oil and gas or water? No, no. It is all drinking water supplies and sewage management. And which state, sir, it is? Telangana. In Telangana. Yes. Sir, this is also irrigation kind of project. We need to construct the water tanks and that STP pipeline. That pipeline and we have to give it taps to the public actually. This comes under the Jal Jeevan Mission Scheme. It is under Jal Jeevan, but it is under AMRUT 2.0 scheme of the central government. It is awarded under AMRUT 2.0 scheme. It is the same like you told Jal Jeevan only. We have to provide the drinking water to each household actually. This is basically scope. There has a lot been spoken about the river linking project also. What do you see on ground, sir, in terms of this taking up and the scope companies like us would be done? Definitely. We are expecting under this Modi 3.0, this river linking project, they will take up this project because this term, sir, they are more concentrating on railway and other sectors other than road what we have seen there. So definitely river linking project is there in Madhya Pradesh and Uttar Pradesh and now in even our area also like Krishna and Kaveri area also they are linking. So their project will come definitely. So we are expecting then once this project will come, we could be able to bid that project. Right, sir. You mentioned about your lackluster performance from the solar EPC and the railway part of the study. Can you dwell further? Where are you finding the issues that are cropping up in terms of solar EPC and also work from railways being a cause of concern you mentioned in your earlier remarks? Yeah, yeah. Because basically for solar EPC is very, very thin margin actually project. So when we have seen that project to what it is a okay because we want to diversify in the other sectors. But now we are seeing a lot of visibility is there in even roads and other sectors actually. Other state projects like toll in Tamil Nadu, Andhra Pradesh, Telangana, and even in Karnataka. That's why now we are not much focused on that sector because they are the thin margin and these are the projects is there where we are very expert. So definitely we thought that let's concentrate on these projects, NHI and these state projects and bid actually most of the projects from these entities. And sir, for H2, you are pointing towards lower turnover than what you did for H1. What you did too? H2. H2 actually we have guided actually lower turnover. Yeah. What should be tentatively closing in terms of our execution on a consolidated level? We did around 2,900 for the first half. And last year it was 4,430. But consolidated, there is one-off income there actually in this quarter regarding our Muzaffarpur Road project. That's why it is more. But it will be done. You can say it will be in the same range as the last year only. Except if you exclude the exceptional item. Right, sir. And sir, of late, sir, there are also some tendering efforts for the BharatNet project also. We are not actively there, but we have seen many road developing companies also like DBL and all participated in that. So what do you think, sir? Why we did not opt for it? We have not seen that project actually as of now. So we cannot be able to comment on that. We have not seen that type of project. Okay. Thank you for all the replies, sir, and all the questions. Thank you. Thank you very much. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Regarding all these claims, so all the money has been realized? All money has realized, yes. So only INR 130 crores which you said in this quarter will come additional? That is from our another project actually. That is hybrid annuity. That is ours. That will come in this scheme. Thank you, sir. One last question on this Muzaffarpur-Barauni project. So how much was the investment and debt funding and total outgo from our side and how much we have received overall? So actually around INR 175 crores investment from other side actually, our side. That we have received intact. And additionally INR 140 crores we have received. Total around INR 317 crores we received from that SPV. This is in line with the termination payments which generally happens in case of NHI? Definitely. It is against that because it is against that settlement of entire and handing over the project. And so based on that settlement agreement, so this figure has arrived. Okay. Thank you. Yeah. Yeah. All done, sir. Thank you very much. Yeah. Yeah. Yeah. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Mr. Saket, your line has been unmuted. Yes, ma'am. Thank you. Sir, for the AMRUT 2 scheme, can you give us some color how the pipeline looks like and the project has been specified? AMRUT 2 project. Because this project was our this pipeline project that was there in AMRUT 2 scheme of the central government. So we have not seen the entire scheme of that actually. But this project was coming in the Telangana. And it is our we are there from Telangana. So we thought that we take this project. But we have not seen that pipeline from AMRUT 2 project actually. Okay. So maybe big pipeline will be there because it is there for Pan India. But we are very focused in our part of the territory. That's why we have not seen that. So sir, for the state of Telangana and Karnataka and Tamil Nadu, do we see other bids being floated for these type of projects which goes into the AMRUT scheme or the Jal Jeevan scheme? Do you find other projects also wherein we will participate? That's why we have seen only in the Telangana where we have participated. Other state, we have not looked actually into. And sir, out of the total revenue for the first half of 2,900, what should be excluded as the exceptional part? Because in other income, we have mentioned at 168 crore. So in the revenue also, we have some extraordinary income or is it only the other income part? Only revenue from operations also there. For the first six months, around 88 crores has been booked actually. Revenue from the operations. Okay. So we need to exclude 88 from 2,930. That is what you were saying. Yeah. In consolidated. You have to exclude 960 also in the consolidated level. If you are talking about the consolidated, then you have to exclude that 960 also. Okay. So from 2,930 crores, we have to include 960 crores. Yeah. 960 plus 88. Plus 88. Okay. So that one is 1,800 crores. 82 crores is the revenue profile. You can work out. It will be that one. Yes, I can work out. And we are looking to close the year again closer to 4,000 on the basis of the core work which is left to be done, but on a standalone basis, definitely 4,000 crores looks too difficult. We may close somewhere between 3,500-3,600 only. 3,500-3,600. 3,600. And the margins will be maintained the way we have done H1? We are trying because our guidance is always actually between 13%-14%. Well, we will try to definitely we will achieve more than our guidance only. And sir, what are the ways to reward your investors since now you are in a comfortable position? Cash balances are there and the project completion are there. And you are looking to diversify but in a very proactive manner. So what should investor community look forward from KNR management? Definitely whatever cash is available because we have our future plan to invest in the HAM project and BOT project. So we have to generally use our cash for the growth of the company. So that's why we have to give that good return to the investors by growing the company into the next level. So we are working towards that only. That is the reward actually investor is going to get actually. Okay. So we have to look forward in the way how the order pipeline works out for the HAM and the BOT segment and how we participate. That is what we should be looking forward. Yeah, yeah, yeah. Definitely. Okay. Thank you for all the elaborate answers, sir, and patiently answering them. All the best to you. Thank you very much. I will now hand the conference over to the management for closing comments. Thank you all for joining us on this call. Please reach out to our investor relations consultant, strategic growth advisor, Arshad, directly. Should you have any further queries, we can now close the call. Thank you. Thank you so much, sir. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.