Good evening, a very warm welcome to everyone present on the call. Along with me, I have Mr. N.G. Subramanian, Group CFO, and SGA, our investor relations advisor. I hope and pray that you and your families are safe, healthy, and secure in this tough situation. We have uploaded our investor presentation on the stock exchange list and the company's website. To guide into our call, at the onset, we have facilitated vaccination for all our frontline working staff with a view to give them better immunity. Being an essential service provider, we have been able to continue our services during this tough time and would like to thank all employees for their dedicated efforts. Their hard work has enabled us to report a stable financial and operational performance in a year which began with unprecedented challenges due to COVID-19. This being our second earnings call, I would like to start by giving a brief introduction of our company business and then our business highlight for Q4 and FY 2021. We are one of the established players in the Indian municipal solid waste management industry with an established track record of around 20 years, providing a full spectrum of MSW services, which is municipal solid waste management, which includes solid waste collection, transportation, processing, and disposal services across India catering to various municipalities. We have developed in-house expertise in landfill construction and management in a scientific manner. We are focusing on the emerging waste management area like waste-to-energy as well as bio-mining. We have presence across three broad business areas. Municipal solid waste collection and transportation projects. This service involves door-to-door collection of municipal solid waste from households, commercial establishments, and other bulk waste generators from a designated area through primary collection vehicle. We have 13 ongoing projects in this service alone. There are typically multi-year contracts, and average outstanding duration of our ongoing contracts is approximately seven-eight years. Municipal solid waste processing projects. This involves sorting and segregating the waste received from municipal solid waste through collection and transportation, where one is expected to generate compost, recyclable waste, shredding, and compressing inorganic waste into refused derived fuel as required. We have two large ongoing waste processing projects, which have a tenure of 21 - 25 years. Please note that collection and transportation and municipal processing are normally exclusive contracts. One is at Kanjurmarg, Mumbai, which has a concession agreement till 2036. Second is at Pimpri-Chinchwad Municipal Corporation and has a concession agreement till 2040. The third business is contract and other services which involves mechanized sweeping, which utilizes power sweeping machines, manpower, comprehensive maintenance, consumables, et cetera. Till now, we have undertaken more than 25 projects, of which 16 are ongoing projects. The company has in FY 2021 bagged two new projects, a collection and transportation project in Jhansi Smart City and another bio-mining project in Greater Noida. They are currently under mobilization, and we expect the same to start generating revenue from October 2021. As I said about bio-mining project in Greater Noida, bio-mining is mining of legacy waste, which is the first time we are getting a legacy waste bio-mining contract. Now, I will briefly share a few highlights on the Indian municipal solid waste service industry. As per few industry reports, the municipal solid waste management market is estimated at INR 5,000 crores in FY 2020 and is expected to grow at a CAGR of 14.4% over the next five years. Urbanization resulting in changing lifestyle pattern and increasing disposable income has paved way for consumerism and have also contributed to higher waste generation in urban India. Over the last few years, we have also seen our industry leaning towards technological advancement, and this bodes well for our technology-driven municipal solid waste service players like us. Various initiatives taken by Government like Swachh Bharat Mission with an allocation of more than INR 1.4 lakh crores over a period of five years towards Urban Swachh Bharat Mission too is expected to drive growth in Indian municipal solid waste industry. Due to COVID-19 pandemic, the speed of organization of waste collection and disposal in our country has hit a road bump, which we feel given the essential nature of the business, we will be back on track sooner than later. Coming to our business performance. Our municipal solid waste Collection & Transportation business registered a volume growth of 2.1% in Q4 FY 2021 as compared to Q3 FY 2021. There was reduction in volume from continuing projects by 16% year-on-year. That is 12 months of operation in FY 2021. Because of business loss due to COVID, in this business we continue to add new projects and further focus on increasing our pipeline by bidding for new projects. We are bidding for new projects and many projects are in pipeline. For FY 2021, we saw a decline in total tonnage handled, excluding those projects with fixed shifts and trips, by 4.1% year-on-year basis, and this stood at 1.29 million tons due to amid COVID-19 pandemic. However, we believe such decline to be offset going forward from tonnage contribution from our currently new projects, which include Nagpur, Noida and Pinjore, Chandigarh. As a MSW processing business, volume grew by 2.9% in Q1 FY 2021 as compared to Q3 FY 2021. That is the volume decline on annual basis was 2.4%. The decline was a result of a decline in commercial activity due to COVID-19 related lockdown in the beginning part of the year. For FY 2021, the total waste processed stood at 2.06 million tons. A point to note, there is a stark difference in the business climate during the second wave of COVID-19 impact on business load as compared to first wave of COVID-19. We are noticing significantly lesser impact in activity, especially in terms of generation of waste from households as compared to the first wave. Even in commercial zone, we have noticed activity which were completely absent last year. Since April 2021, we have seen sequential improvement in volumes in certain geographies that we operate. Both our sites at Thanjavur and Pinjore continue to perform in line with our expectations as the commercial activities are returning to normalcy with easing of lockdown. On new business front, as mentioned earlier, we recently bagged two new contracts. One from Jhansi Smart City Limited for door-to-door collection and transportation of municipal solid waste service in the city of Jhansi, and the second from Greater Noida Industrial Development Authority for bio-mining at one of the old dump sites. This again, I would like to emphasize, is one of the first contracts the company has bagged in the bio-mining of legacy waste business. As I said in the past, TAM area is big and many sites have to be vacated from legacy waste due to the pressure from the courts and GE and also from the Central Government. Jhansi's Collection & Transportation contract in Jhansi is for the period of five years, which is further extendable for two years. The total contract size is INR 21 million per annum. The bio-mining contract awarded by Greater Noida Industrial Development Authority is for a period of 24 months with an initial contract size of INR 23.75 million. We expect that revenues from these contracts will start coming in from Q3 and Q4 of current financial year. There are few business pipelines, but the timing of summation of the same is uncertain due to the evolving pandemic situation. We continue to focus on contracts in newer municipal areas while continuing with our cluster-based approach. Going forward, we see significant change in our business as various municipal corporations are inclining towards awarding solid waste management contracts to efficient third-party players like us. I now hand over the conference to Mr. Subramaniam, our Group CFO. Thank you, Jose. Very good evening to all the participants. It was said many times last year that 2020 and the beginning of 2021 was a year like no other. For many reasons, it was an incredibly difficult and trying year. Our positive message internally was that great companies use tough times to better themselves, and that's what precisely Antony did. I will share the highlights of our financial performance. For Q4 2021, the company reported an operating revenue of INR 120 crores as compared to INR 118 crores in Q3 2021, registering a growth of 2% on a sequential basis. This is on the back of approximately 11% growth that we had reported in Q3. The growth in Q4 was driven by both tonnage collection and handling, which has seen a significant marginal improvement on a sequential basis, but on a year-on-year basis it's been strong. The total revenue including contracts and other revenues grew by 9% sequentially to INR 138 crores in Q4 2021 as compared to INR 127 crores in Q3 2021. EBITDA is down by 6% at INR 34 crores during the quarter, with EBITDA margin at 24.7%. The main reason for the decline in margin has been the 15% sequential increase in other operating expenses, mainly driven by higher fuel prices. The escalation hits in later, either annually or quarterly or monthly, and hence that will be a timing issue of the impact and the release coming in. The dip in margin is also due to the ex gratia payment that the management has made to our employees for their efforts taken during these testing times. The profit before tax stood at INR 19 crores for the quarter as against INR 22 crores in Q3 2021, and the profit before tax margin is 17.7% during the quarter. Profit after tax stood at INR 16 crores for the quarter as against INR 19 crores in the previous quarter. Coming to business-wise performance, the municipal solid waste Collection & Transportation revenue is up by 2% at INR 83 crores as compared to INR 81 crores during the previous quarter. The growth being on account of increase in total MSW C&D volumes by 2.1% as compared to Q3 FY 2021. The MSW Processing revenue is up by 3% at INR 37 crores as compared to INR 36 crores in the previous quarter. This is reflecting the slight improvement in the waste processing volumes by 2.9%. On an annual basis, our total operating revenue has risen by 7% from INR 402 crores to INR 429 crores. The growth being driven by 11% revenue growth in Collection & Transportation business, which registered a 4.1% volumes de-growth. The growth mainly coming from higher escalation during the year. We could sustain the overall revenue growth reflecting these kind of escalation which is built into our contracts, which is normally in the range of 4%-8%, reflecting the underlying inflation of the key cost factors like diesel and wage increases. All the contracts that we have today have escalations. These are either fixed or variable, which keep pace with the changes with the HSD component of WPI or the minimum wages of a particular state. To repeat, 100% of my revenues have escalation and of this, 57% of my revenues are under variable escalation, while 43% have a fixed escalation clause. Of the 43% with fixed escalation, 14% of my revenues are from old contracts which will roll off over the next 18-24 months. The same will be renewed or replaced under variable escalation format. On the balance sheet front, our net asset equity as of 31st of March 2021 is 0.3x as compared to 0.5x as of 31st December 2020. Total debt as of March 2021 stood at approximately INR 150 crores, which compares against INR 210 crores last year. Our net worth has improved to INR 442 crores versus INR 300 crores last year. The current receivable days as of 31st March 2021 is 59 DSOs as compared to 60 in 31st March 2020, and our endeavor is to maintain this under current circumstances. Despite COVID and the tough set around the system, we being in the essential services, the corporation and our clients have helped us maintain our operations and we are in constant communication with our clients in this regard. We keep a very acute watch on the receivable position and that is one of the key strengths and the key fact that the selection of clients is critical. That's it from me. I open the floor for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Reminder to the participants, anyone who wishes to ask a question may press star and one at this time. The first question is from the line of Dipesh from Equirus. Please go ahead. Hi, Jose sir and Andy sir. Thank you for taking my questions. Sir, your other expenses have increased by 22% YoY. We understand diesel inflation is the main cause, just wanted to understand, is there anything else apart from that, just like your repair and maintenance cost or your higher outside vehicle hiring thing? Anything, any one of that you want to highlight? Hi, Dipesh. Bulk of the increase has been mainly because of fuel prices and the ex gratia that we have provided for during the Q4, since this was part of the transaction. You see a dip in my EBITDA margins. There has been three factors if you look at it mainly. One is a lower tonnage being processed in my waste processing projects. Because of the beginning part of the year, we have seen a fall in my waste processing by around 10.9% on a year-over-year basis. That has reflected in a lower EBITDA margin because waste processing carries a higher EBITDA margin for us. Secondly, the diesel fuel prices which constitutes approximately 18% of my total operating cost, that has increased significantly. It's jumped by around 41% to 39% depending upon the city that it's in and we operate in. That has a pass-on effect, but that comes with a lead time. Timing is one thing that has kind of hit our margins here. Thirdly is the ex gratia that the company has provided to its employees. These are the three key factors which has led to a dip in my EBITDA margins. Understood. In the timing part, you spoke about that 57% of your contracts are variable and 43% are fixed escalation clauses. If you can give a sense what percentage of contracts have quarterly, monthly, and half-yearly price revision mechanism? Mainly I'm asking this because the diesel prices have continued to increase in April, May, and June. What is your broad outlook on the one view on the first half margins going forward? Normally my annual margins come in the form of 60% of my revenue I have in annual escalation clause as compared to a monthly and quarterly constitute around 15% each. The balance 13% is a half-yearly escalation for us. Okay. There can be a decline in the first quarter and the first half also, right? Because the diesel continues to increase. Yes. A couple of factors that have led to a fall in margin, not just the fuel price increase, but also the decline in tonnage. A normal tonnage improves during the periods of monsoon and also the part of my third quarter. Right now I'm on the cusp of my increase in tonnage and also my escalation will kick in. We believe the margins in my first half is normally significantly better than the margins in my second half. Of course, assuming the fuel prices remain steady through this period. Right, sir. Also, how many of your contracts currently will be on extension? Because I understand during the extension period, you're not able to take any price hike, right? Yes. I would say around 8% of my revenue are under extension. These are now being tended by the government. The paper has already started through the various corporations. It's because of COVID that they have not been able to roll it out. We are in constant communication with the corporation and after the second wave, they have already initiated action on that front. We expect some movement in that area shortly. Understood. Sir, you spoke about the volume impact in this lockdown, that it is better than the last year. If you can just highlight sequentially, how is it like from the fourth quarter of FY 2021, if you look at first quarter FY 2022, how much dip are you expecting in the volumes going forward? Actually, sir, it's not at a console level, but if you look at different regions, we have seen a marked difference in the way the local economies have worked. We have operations in MMR region, we have operations in NCR region, and we also have operations in Nagpur and Pimpri-Chinchwad, for example. We have generally seen the western regions have performed significantly better than the northern region in this aspect. Okay. Sir, are your clients paying you on time? I understand that they're dealing with a lot of healthcare issues, right? Are there any receivable issues that you're seeing? No. Actually, if you look at the first wave and the second wave, our receivables have actually remained steady. The government corporations have actually given us priority on the essential services and kind of drawn revenue from other departments. The unplanned expenditures have been controlled by various corporations. We have not seen any significant stress in our current receivables, which is what the numbers are reflecting. Having said that, we are in constant communication with all our corporations, all our clients, and we are in touch with them because this is something which is very crucial for our own working capital lines. Right. Lastly, sir, if you can just give a guidance on the CapEx and the gross debt outlook for FY 2022. On the CapEx over the next two years, we expect our Pimpri-Chinchwad waste to energy project to be set up, which would represent approximately around INR 200 crores of CapEx over the next two years. We also foresee a CapEx over around INR 20 crores-INR 30 crores for our other processing contract. We do not foresee any significant CapEx at our collection and transportation operations. The CapEx at P&T will be triggered only if we bag new contracts. The contracts that Jose had mentioned, the one at Jhansi, the entire CapEx has been taken care of by the corporations here. It's an asset-light model in that scenario. Sir, the gross debt, how much debt you are expecting? I would be entering around INR 170 crores to around INR 180 crores on a gross debt basis. Okay. Over the next two years. Understood. Mostly it will be the FY 2023, right? Because FY 2022, it may not be- Yes. It will be having a lag effect. It will start at Q4 FY 2022 and bulk of it will be in FY 2023. Understood. There's Jhansi and the Greater Noida contract that you have recently bagged. I understand they're asset-light in nature, so the municipality will be doing most of the CapEx for you. What kind of EBITDA margins, will that be in line with the existing contracts or they'll be materially lower than those contracts? In case of Jhansi, the CapEx has been reimbursed or it's been funded by the corporation, so the margins will be in line because it's on a different revenue model. It's not on tonnage, it's on the number of households and units that we collect from. The metrics will be different. In Greater Noida, the CapEx has been done by the company, and it's a first of its kind biomining. To be honest, the margins, what we're targeting should be in line with our historical trend for waste processing, and that is what we are working on. Okay. Great, sir. Thank you, and all the best. Sure. Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa & Co. Please go ahead. Yes. My question is that, Pimpri want to have a pan-India kind of a presence in waste management. Adjusting to the cultural differences between each of the municipalities and even the difference in working styles will be a tough ask. How are we actually doing it to face it management-wise? Because management will have a certain bandwidth and we have been used to working in Bombay and surroundings. Secondly, do we have any kind of a progress report on the Pimpri plant that we were going to convert waste to electricity? Regarding, as you said, the cultural differences. What's happening is pan-India level, the garbage collection and transportation is done in a very traditional way. It is not modernized. Many of the municipality want an operator who can modernize their existing system from the traditional method where manual handling is there and open dumps and all that. Another thing is the existing laborers in such conditions, they are not taken care of. They don't have protective gears. They don't have proper medical care. They are not paid provident fund and ESIC, because this business is not very organized people who are doing it. When we go there, when we win the contract, first thing is we are getting modern equipment and existing people who are all there, the workers and everybody, we will provide the best of safety gear. We are going to provide them all the facilities. All these things is coming as a good yield and a better living condition, better operational condition for the worker as well as the management of the municipality. The municipality is very happy to receive us. If we say that we are coming, they like it because they have seen what we are doing. This work, wherever we are going, we are going with a more modern method of operation, not with the same traditional way. The competition is not much. Mainly we recruit the local people. We don't take anybody. If we go to U.P., we recruit the local people. We advertise in the local newspaper. Entire management staff, except for one or two to guide them. Our team goes there for first two, three months for getting the operation in place. We train our people. Afterwards, the people who are locally from that area, they manage the show. That is it. The second question, Mr. Faisal, I couldn't hear properly. Can you repeat it? My second question is, the Pimpri-Chinchwad, we are going to set up a plant to convert waste to electricity. What is the progress of that project? Are we making tangible strides towards getting it operational in 2022? Antony Waste waste to energy project is into two parts. One is COD 1 and another one is COD 2. COD 1 is we have started receiving the waste, and we have started processing, and organic fractions are converted into compost. That is completed, and that is running more than, I think, one year or something. We are charging a tipping fee, and for which there's some revenue coming in. As far as power generation, that COD 2 work, construction work is going on, and it should take around 16-18 months to complete. Faisal, just to add on that, the civil work is already started. We already made advances to the bulk manufacturers for all the fabrication parts to be shipped in. These being COVID times, everybody needs some firm orders in hand before they start the work, and also because of these locking, unlocking policies, there is a decent bit of confusion that's happening on the layout and the firm of project rollouts. Having said that, the civil work has started, and the team there is very confident that they will be able to complete the construction in the allotted time. Yes, Shripad. I have a third question. Since we have MIT as a shareholder in our company, are we trying to take any kind of initiative to develop some new age technologies that maybe in their research lab, which we could absorb and process into our waste or into our business model to create new materials or something like that? Faisal, right now we are in touch not with MIT but with IIT Bombay to that angle. Yes, we are in constant touch. We take their help in understanding how waste can be processed better, more efficiently, and the carbon footprint, energy captured, reducing the greenhouse effect. Can we tap the excess greenhouse that is released from this kind of waste processing activities? For example, in Kanjurmarg, we extract the entire methane that is being generated at our site, and we are generating power to the tune of around 0.97 MW. That is one of the steps that we have done, and we are also understanding how the waste decomposes under very focused environment so that we can roll out similar projects across the country. To answer your question, yes, we have reached out to the academic front and for better technology and to help us guide in resource extraction surplus, but not with MIT but with IIT Bombay. What is our research and development spend per year? Our research and development spend would not be very significant at this stage. It would be less than INR 1 crore, but there are certain areas that the management has earmarked in the RDF technology about pelletization and everything, making it more efficiently driven. That has been earmarked. The company wanted to spend more, but because of COVID and all the uncertainties, there has been a slight lull in that, but the work is very much on cards. Once things stabilize and we have a clearer visibility of how future shapes would be, this is one area that the management has clearly indicated to work on. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Anupam Gupta from IIFL Capital. Please go ahead. Good evening, sir. A couple of questions. Firstly, if you can list out a few projects where you are bidding right now in terms of C&T which can come up and really if there is anything which is coming on the Processing side as well? Talking with few corporations. Yeah. We are bidding in a few corporations for setting up of transfer station, collection, transportation, and waste processing. Most of these bids are under preparation. We have appointed the consultant, and we are in the process of bidding. Hopefully, if everything goes fine, we may win in coming months. Okay. You had earlier highlighted that your capacity is to take INR 50 crore worth of annual projects. Do you think that sort of win is possible in this year given where the tenders are right now? Definitely, Anupam, we are definitely working with the corporations, but on the timing is something which none of the corporations are able to commit because of the evolving pandemic situation where the talks of the third wave is also on cards. We are definitely in talks with a lot of corporation and few of the corporation, the talk is on at a very advanced level. The timing and recognition of the same is depending on a lot of moving variables, which the corporation are not able to put a finger on today. Right. Understand. Secondly, as I understand, your contracts which are in extension do not have price escalation. Is there not a provision at all that given the sharp increase in fuel prices which you have seen, that can be reimbursed at all, or will it always be fixed price during extension? Anupam, these are very client-specific requests. The company has raised these issues with the clients, and they have mentioned that they will get back to us after a proper due diligence because these are public money. It's not a unilateral decision of a department, so they need to get a consensus from the general body of a corporation. For example, in the Municipal Corporation of Greater Mumbai, they have allowed us to bill as per the minimum tonnage, which was experienced during the February 2020 period, despite the decline in tonnages. Based on the similar recommendation by corporation, other corporation are also taking it up positively. These things take time, and we definitely expect some relief in that area. Okay. Just lastly, I wanted to understand what is the status of the increase in stake from the Lara entity for your Pune PCMC and Mumbai projects, which was supposed to happen. What is the status as of now? The Lara stake currently is still at 36%. We expect that to be reduced to 27% shortly. The reason is there is a delay because of certain documents that needs to be received from the company, which is registered in São Paulo, Brazil. Because of the local condition, they have not been able to get those same documents attested by the Indian Council over there. Once the documents are attested by the Indian Council in Brazil, the same will be needed over here to open the Demat account. We expect the entire exercise to be done by September 2021. September 2021. Just to clarify one thing, before it happens, your economic interest remains at 50/50 until it happens, right? Yes. Okay. Understand. Thank you. Thank you. The next question is from the line of Bijal Bakhai from Amit Jesani Financial Services. Please go ahead. Hi. Sir, good morning. Sorry, good afternoon. Tell me, sir, do we have a dividend policy, payout policy for the shareholders because you have not declared any dividend for the current year? Hi. This matter has been discussed at our board, and they will be formulating a dividend distribution policy shortly. It's something that the board will decide and get back to you before the AGM. Nothing to be declared for financial year 2021? It is something that will be decided by the board. They will look at the conditions that is prevalent in the economy and the health of the company and the kind of future projects that the company is bidding for. I'm sure the board will take all the viewpoints from all stakeholders and arrive at a decision. Thank you. Thank you. The next question is from the line of Nisha Desai from NM Securities. Please go ahead. Good evening, sir. Sir, do we expect any additional CapEx at Kanjurmarg? What will be our maintenance CapEx? The CapEx that we foresee at our Kanjurmarg site will not be over and above the INR 20 crore-INR 30 crore that we anticipate over the next two years. We don't see any bid beyond that. We don't have any maintenance CapEx in our Collection and Transportation business. Whatever money that we spend is OpEx-ed out in my Collection and Transportation business. We don't build on creating higher book asset at my Collection and Transportation business. Okay. Thank you, sir. Thank you. The next question is from the line of Manik Malhotra, Independent Investor. Please go ahead. Sir, am I audible? I just wanted to ask you two questions on the fleet side. I just wanted to know whether our whole fleet runs on diesel, or do we have small tippers which are running on CNG fuel? Bulk of my machines, the compactors run on diesel because the road conditions that end up at the dumping grounds or the landfills are not great, and you need a lot of power, and CNGs are not equipped with those kind of engines today. I would say bulk of my machines run on diesel. We have few vehicles which do the primary collection, which are CNG based. Our interaction is always ongoing with manufacturers like Ashok Leyland and Tata to see whether future CNG machines will have enough and more adequate power to help the vehicles climb landfill kind of a situations. To answer your question, yes, I would say around 6% of my total vehicles are CNG, but 94% are still running on fossil fuels. There's a constant attempt by the company to shift from diesel to CNG. We have tried using electrical vehicles. We have few sample pilot ones running around, but unfortunately, the operating people are finding it slightly difficult when it comes to load carrying and load distribution. Okay. One more question. You have mentioned in your prospectus that around lot of your fleet is having GPS for efficiency. How is it going now? Are you doing anything tech-driven for efficiency or for this route efficiency for picking up the waste? Anything on your side? Due to pandemic, what we are looking at is how to optimize our routes. We are constantly working on the routes, and since our vehicle is fitted with GPS, we can monitor the movement of vehicle and the collection of the waste in one particular route, if it is less, we can keep on changing the route. That we keep on doing now because of this pandemic. In the past, we never faced something like this. One particular route we used to collect, suppose X amount of garbage, it was fixed for the next, and with a firm escalation. With this pandemic, our team and we have geared up to keep on improving or changing the route plans on regular basis. Since all our vehicles are fitted with IT system, the GPS monitoring, everything, it will become very easy for us to modernize our current route plans. Thank you. The current participant has left the question queue. We'll take the next question from the line of Ankan Jain, Individual Investor. Please go ahead. Good evening, gentlemen. Hope all of you and your family are safe and secure. Yeah. Thanks for your wishes, and we hope the same at your end, Ankan. Thank you. Sir, I have questions project-wise. The first one is about the Kanjurmarg. We are currently running there at 5,000 or 5,300 tons per day. Sorry to interrupt you. Please use the handset mode. The audio is not clear from your line, sir. We'll take the next question from the line of Keshav from Rakshan Investors. Please go ahead. Hi, sir. Thanks for taking my question. Sir, if we consider the Jhansi order in which you don't have to make any capital expense, do we also have similar contracts from other municipalities running, in which they procure the assets and we do the operations end? Yeah. We are doing in Varanasi now, where the entire CapEx except for a tipping machine is funded by the municipality. In the past we had bid even for a road sweeping contract where the machines were funded by the municipality. Because of Swachh Bharat Abhiyan and all that, there's a lot of fund in the central government to fund the CapEx for even waste processing apart from collection and transfer, which is a good news for company like us. Sir, like you said in the beginning of the call that the margins would be similar to your processing business otherwise. Your tax translation would be superior, right? For these orders. We were talking about collection and transportation. Jhansi is a collection and transportation business and not a waste processing project. The collection and transportation margins are normally lower than our waste processing businesses. Okay. Sir, if we consider the C&T segment only, if we compare the Jhansi order, do we have superior IRR for these? IRR will be superior because of very negligible CapEx, if you look at in that sense. If you look at on a mathematical modeling point of view, yes, the IRRs will be significantly better as the CapEx requirement is almost marginal as compared to a similar size project if the entire CapEx has to be put. Also the tipping fee changes. What normally happens in These are basically like a cost plus model that we work on. If the CapEx is there, then the tipping fee, that's the rate per ton that you charge to the corporation, is different as compared to otherwise, when the CapEx is done by the corporation themselves. Yes, it gives us a significantly more flexibility when you are in a position to tell the corporation the number of vehicles that you want, and you can add a buffer zone to it as well. Okay, sir. These projects have similar receivable cycles as the other projects? Yes. They are very similar to the existing collection transportation contracts. This particular one is a five-year contract, which can be extended by two further years. Okay. Sir, if you combine the two recent wins, one is the bio-mining order and the Jhansi order, they total to about roughly INR 50 crore worth of contracts. They would be realized this in FY 2022 or? Not the entire 12-month revenue. We are expecting Jhansi to start providing revenue from October 2021, and Varanasi will be fully fledged by September 2021. Greater Noida 2 will start off 100% by October 2021. The second half of my current year should see revenues from all these three contracts. For six months, that would be. Okay. The combined potential revenues are combined of these three contracts put together? Let me give you the thing. What happens is, if you look at my current order book, which is all the contracts that are backfilled, dated, signed, and mobilizing, everything put together. At 100% normalcy, the company expects its core revenues to improve by approximately 18%-20% year on year. Please note that these numbers that I talk about are core operating revenues from tipping fees. My project revenues will be recognized as to the Ind AS accounting norms as and when we execute the CapEx at our ongoing PCMC waste to energy project and any other incremental CapEx that I incur at my Kanjur waste processing site. These are one-off revenue recognition as per the project accounting routes. I request that the core operating revenue will be around 18%-20%. Add to that any other CapEx-driven revenue will be sitting as my contract income in my books of accounts in this year and the next. Got it, sir. Thanks a lot, sir. That's all from me. Thank you. The next question is from the line of Dipesh from Equirus. Please go ahead. Yeah. Thanks for the follow-up. Joe, sir, any study you're doing or anything under consideration for the biomedical waste, which has become a very big problem nowadays? Biomedical waste, presently we are not looking into it because we are getting huge opportunities presently from municipal solid waste. The thing, biomedical waste, the size is on a smaller size, and it is from city to city. Presently we are finding lot of opportunity in municipal solid waste, which is our core business. Okay. Biomedical will not come under the municipalities. No. That is a different business where we need to have two type of operations, incineration and also cleansing of recyclable. They are two different operations. Got it, sir. Sir, given your planned INR 200 crore-INR 250 crore CapEx over the next two years, just want to understand what kind of bandwidth you have to bid for any upcoming projects. Any debt to equity or debt to EBITDA targets you have in mind beyond which you will not go? Dipesh, currently my debt to equity is around 0.3. Even after the fully drawn-down CapEx and debt related to my waste-to-energy project and everything, my debt to equity will be in the range of around 0.6-0.65 at the peak. The company has a very healthy balance sheet as today's date. We are also talking to various banks, reducing our existing interest cost by around 100-125 bps. Our headroom to borrow money for incremental business is still adequate, and the company can grow if the opportunity provides and it meets our financial requirement. There won't be any additional stress in my balance sheet. My cash from operations is around INR 110 odd crores. We foresee the same to be sustainable, and these are during COVID time. We believe the same cash flows to be available and that can help us fuel our future growth of around 20%-25% CAGR as Jose mentioned. Got it. Lastly, sir, sorry to harp on this, but how many contracts have seen price revision since January of this year? Sorry, I didn't get that. How many contracts? Have seen a price revision since January of this year. Price revision, there has been only one, which was in Kanjur Marg, which is due on March 6th of every year. For that's the only contract that we got the price revision. Everything else falls after June, July. After June, July. Normally what we have seen historically is after the fiscal year ends, that's when most of the corporations award new contracts. Normally the new contracts come in in the month of May, June, July, thereabout. That's how the cycle runs after the budgetary allocation and everything is done. Okay. After June, July, only the revisions will happen. Till then, okay. Right. Nothing special you can do because this is an unprecedented time, right? The oil price is going like anything. Just like steel companies are passing on the price to the auto companies and all. Can't you just talk to the municipalities that you are not able to work under such margin pressures? Yeah. Got it. We have already applied for minimum wage and for minimum tonnage increases request to the corporations for contract. As per the contract, it is also over and above the contract requirement. Having said that, Dipesh, the corporations have been making their payment on time regardless of the stress they might be facing internally. We are in talks, we are talking to them and we're also raising these issues because a rise in diesel and fuel prices It's not only a problem for companies like Antony Waste, but also for employees who work in these kind of corporations. It's a matter which is well thought, well spoken and well raised at various levels. The newer contracts have an escalation which is quarterly, like the ones that we have in PCMC and in Nagpur. The newer contracts that the company is bidding for have these metrics of escalation even on a monthly basis. That is one of the ways that the corporation will address this problem in future. For existing contracts, the only redressal option that the company has is to request the various departments, which in turn will request the corporation finance departments for any additional scope for funds being released to the department. Got it, sir. Also when the volumes will come back, they will kind of reduce the margin pressure. That will also help. Definitely. We have already seen a slight improvement in our tonnages over the last three months since March 2021 onwards. We are seeing improvement on a sequential basis. We pray that the unlocking speed and everything continues through the year and we are not hit with any adverse surprises. Got it, sir. Thank you for all the rest. Sure. Thank you. Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa & Co. Please go ahead. Yeah. Are you taking any steps to cut down on the pilferage that happens at the stage of collection by employees in the dry waste? That way we lose twice. We lose on the tipping fee as well as we lose on the economic value of the dry waste. Most of the dry waste is pilfered at the end of the collection itself. Can we do something to really cut down on that? Actually, Mr. Hawa, when we talk about waste processing per se, the driving revenue for the company is tonnage. Sale of recyclables and what you're talking about is sale of your recyclables and scrap is very marginal to our business. Not more than 1% or 1.5% of our revenue is from sale of plastics and other recyclables. The pilferage actually doesn't bother us per se, but our revenue is purely driven by the tonnage and that's of more material importance for us, and our operations are not hit by these kind of minor pilferages. Studies show that dry waste is almost 30%-35% of the total waste collected in a city. What you are saying is dry waste, recyclable waste. Recyclable waste tonnage is very low. There are dry waste like textiles and broken plastics and broken things which has no recyclable value. Any PET bottles we find, any sort of tins and all that, we will take. That waste is very marginal. That's what our calculation is. We can lock dry waste, which is shredded and converted to refuse-derived fuel. Which is around 30%, which we are getting. Recyclable waste mainly is getting pilfered, which we have no control. It is the municipalities from households when you collect, there could be some ragpickers and all taking it away. Overall what we have noticed is the dry waste still constitutes 30% and is there. Still again, it's again about 1%-2% still is coming to our plant. Going forward, it may reduce because there are less ragpickers now there in Mumbai compared to what we used to see in the past. That's one. Okay. Thank you. Thank you. The next question is from the line of Ankan Jain, Individual Investor. Please go ahead. Sorry, sir, my line got disconnected last time. What I was asking was about Kanjurmarg. Currently, we are running at 5,300 tons per day. When this will go to 7,500 tons per day as per the contract? There is a gradual step up as per the contract, and this will be taken up gradually. There is a step-up mechanism. We normally don't comment on project-specific information, but this is as per the tender. There is an incremental shift that happens every three or four years. Okay. We had read somewhere this IIT and other NGOs were doing some study about the impact there. Is it linked to anything to that report or anything? That report would be shared with the Bombay High Court. That's not been shared with the company per se. I think it should be there on the Justice Department's website. That has not been shared with the company. No, agreed but whatever the report findings is nowhere connected to increase in the capacity. That has nothing to do with the increase in the capacity because the zone and the area that has been earmarked for the waste processing at Kanjurmarg is earmarked for 7,500 tons per day. That area is sacrosanct, and the corporation has no comment on it. I just wanted to know, you mentioned that around INR 20 crore - INR 30 crore need to be spent as a CapEx there for this project during the next two years. Once that is done, is there any more CapEx to be done at this project? Not immediately. There will always be some maintenance CapEx for our material recovery facility and our composting yard, but that will be very insignificant as to the CapEx that we've already done today. It will be in the range of around 1%-2% of the existing gross block, I would say. Okay. Sir, is there any provision for you in the agreement to go after 7,500 also, or is 7,500 tons per day is final? No, it's as per contract, 7,500. 7,000. It mentions that up to 7,500 tons per day is what the project is envisaged at in today's world. Future, we are not able to comment, but the project is technically designed to process 7,500 tons per day. Okay, fair enough. Sir, now at the Pimpri project, after this investment of INR 200 crore for the waste to heat unit, is there any other CapEx needs to be done in this project? No. After this CapEx is done, the plant is up and running. After that, there is no incremental CapEx required. Okay. Sir, as per the current time schedule for the Varanasi, have we received the work order for the remaining four zones? Yes, we have received the work order for the remaining four zones. The work has already started in surveying those areas. We expect the survey to be completed shortly. That is why we have mentioned that the revenue from Varanasi should also kick in fully from September 2021 onwards. September, yeah. Okay. Sir, this project agreement is also for seven years? Sorry, I didn't get the last question. This project, this agreement, is it for five years or seven years? Varanasi is for seven years. Seven years. Okay. Sir, in this financial year, the compost volume has gone up by more than 100% or so. Any particular reason, sir? We have expanded our compost generation capacity where we doubled the maturity pad in 2019. That came up for operations in mid of the last year. If you see in Q2 and Q3, we have seen a sequential growth in the tonnage. Now I'm able to process significantly more tonnage and able to sell that same to our vendors. This is one of the reason why increase in capacity, full utilization of the same, and also ability to get buyers for my compost. These are all the three factors which has led to me doubling my sale of compost in the current financial year. Okay. What I want to know is sustainable for the coming years also? Yes, this is sustainable for my coming year, and we are actually working at improving the quality and also increasing the capacity if it's possible during the dry season. Okay. Sir, just want to know how much revenue this generates? It's very marginal. It's less than 1%. As I said, our sale of compost and sale of recyclables together constitute less than 1%-1.5% of my total operating revenue. These are bonuses, as I would say. Okay, fair enough. Sir, my last question is about the notes you have mentioned, the note five and six regarding some pending dues from municipal corporation about that INR 8.06 crore and all that, whatever the numbers. I just want to know, since how long these payments are pending? These have been pending for more than three years. Certain disputes and certain redressal forums had to be completed. We expected all these actions to be completed by 2019, 2020. Due to COVID and all the things, all these discussions and actions and court proceedings have been put on a back burner by various jurisdictions. That is one of the reasons why we have not been able to get this acted upon. Having said that, we have recognized and worked with certain corporations like Ulhas Nagar and Bhiwandi, which has come out for a settlement, and we have already worked with them. Not all corporations have gone on a hibernation mode. Few corporations are still working on this zone. We expect to work on the other clients during the current financial year and try to find a resolution as fast as possible. Sir, this amount, INR 8.05 crores, was earlier INR 13.5 crore as on September, when you had come out with DRHP. Is that the correct amount? Yeah. Earlier it was INR 13.5, now it has come down to INR 8 crores, correct? In the past, in 2019, this amount outstanding and qualified was INR 28.5 crores. Correct. We have been constantly talking with our customers and clients and explaining to the reasons why there has been a dispute. After effective redressals, this amount has now, from the collections that have been made and exceptions and everything has been made by the clients, this amount today stands at only INR 8.05 crores from different municipal corporations. It is not a single corporation. There are multiple corporations involved here. Correct. Sir, my last question again pertain to the same note. Sir, you have mentioned that in the other financial assets under current subheading, there is INR 74.45 crores is there in the balance sheet. Right. Is all these amounts pertain to minimum wages outstandings only? It's not just pertaining to minimum wages. There is also a retention money involved there. As per our tender conditions, we need to provide for certain receivables which will be paid by the corporation at the end of the contract. There is approximately around INR 31 crores as retention money, which is good money from my existing clients, which will be refunded to me at the end of the contract. Approximately around INR 9.2 crores is the minimum wage reimbursement, which is expected from one of my other customers who is currently processing the same. The minimum wage issue is around INR 42 crores, which is still there. That is how the breakup is. Bulk of my money is under retention and reimbursement awaited from my trust clients. Okay. That means the receivables would be INR 89.51 plus this INR 40-something. This is the major amounts which are receivables from the corporation, correct? Yes. Though it's not current receivables, these are long-term receivables because this is billable to the company at the end of contract. If it had been a one-year contract, then it will be realized within the one year. If it's a five-year contract or a seven-year contract, accordingly, the same gets released to us at the end of the project life. Okay. Thank you very much, sir. It is very helpful. Thank you very much, and all the best. Thank you. Thank you. The next question is from the line of Manik Malhotra. Individual investor, please go ahead. Yeah. Actually, my line got disconnected. I just wanted to ask 1 follow-up question that, I'm just looking at the projects on which you are working. When a tender comes, so do you focus on tenders which are coming from the same existing project site or same state, or are you focusing on the states where you are not working right now? I'm just asking this. I just wanted to know whether you are working on clustering strategy, like you're making clusters and then to improve the efficiency. I'm just asking this question. The idea is, first thing, we only bid tenders in those municipalities. A, is that the tender should be of an international standard, which is made by some top four, top five consultant in the country, where there is complete modernization. Our company believes in technology and new system to be implemented in waste collection as per Solid Waste Management Rules, 2016. That is one strategy. Wherever any municipality comes up with this type of bid, we are open and we bid. Second is cluster. We always like to win contract nearby cities because what we notice is, when one city comes with a modern type of waste collection and transportation or processing of waste, the neighboring city also would like to implement similar type of contract. When those tenders come, we try to win that because our overall fee comes on the lower side. We can manage the operation much easier. That is the reason we look at cluster-based approach. Any part of India, we are open to bid, provided it fulfills our requirement to bid. At the same time, municipalities' financial health also we check. What is the credibility and how our money can be saved, protected after execution, our payment should be on time, and all that. On base of all these due diligences, then we analyze and then we bid. Okay. Thank you. That's it from my side. Thank you. Ladies and gentlemen, we will take the last question from the line of Ankan Jain, individual investor. Please go ahead. Thanks for the follow-up. Sir, I had only two question. One is this Pimpri project with the capacity is 1,000 ton per day. Is there any provision to increase the capacity in future? The plan in this case is waste to energy designed for 1,000 tons per day, and 40 MW unit. We cannot increase the capacity at the moment for this. My second question is, we must have already quoted for some of the projects during the course of the year. Is it possible to share us only how many number is there in pipeline? How many of that are the waste-to-heat treatment type of thing? Just to understand how big these opportunities is becoming in India. In the waste-to-energy zone, there are very few, I would say not more than two projects which are up for under the discussion stage across the country. There is some contract which has been issued from NTPC for bio-methanation work. Most of the work that we are looking at and that has been issued by various corporations are in the area of waste processing using either. So I just want to clarify one thing. When municipality go for waste processing, they decide which technology they prefer. If the municipality do not have larger land and the land is very expensive, and moreover, municipality is rich, where they can grant some money for VGF gap funding. In such cases, they opt for waste-to-energy projects. There are municipalities who have little bit more land is not expensive. They prefer waste composting method, that is material recovery cum composting. The technology is selected by the municipality based on the land and their financial credibility. Okay. Sir, what I actually wanted to ask you was, in between C&T and waste processing projects, how many are there for us to grab as on date? What is the revenue generation opportunities of these projects? Of the pipeline that we are targeting, it's always a mix between waste processing, collection, and transportation. Waste processing project takes around 1.5 - 2 years of mobilization as compared to a six-eight month mobilization period for C&T. Your question on the number of projects that the company is bidding or is looking for, I would say that the business development team is looking at around eight projects as of today. Few of them are in advanced discussion stages with the corporations and consultants on the inputs. I would say around eight projects are there on the pipeline for us in the current as of today, I would say. What could be approximate value of these contract total, sir? I don't want individual. Total. Is it something around INR 200 crores? No, they are significantly bigger than those. It should be in the range of around INR 280 crores-INR 340 crores annualized. Annualized. Correct. Okay. Thank you very much, sir, and all the best. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Jose Jacob for closing comments. Dear participants, we are seeing various municipalities to prioritize municipal solid waste management and come out with contracts for the same, which ensures good growth momentum for us, and we are confident enough to capitalize on these opportunities. I would like to thank you all to participate on our earning calls. I hope we could address all your queries adequately. For any further information, please contact SGA, our investor relation advisor. Please take care. Stay safe. Thank you very much.