Ladies and gentlemen, good day, and welcome to Antony Waste Handling Cell Limited Q4 FY 2024 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jose Jacob, Chairman and Managing Director of Antony Waste Handling Cell Limited. Thank you, and over to you, sir. Good afternoon, and thank you for joining us for our Q4 and FY 2024 earnings conference call. With me, I have Shiju Jacob, Director and Chief Risk Officer, Mr. Mahendra Ananthula, our Group President, Mr. N. G. Subramanian, our Group CFO, and SGA, our Investor Relations Advisors. Our investor presentation for Q4 and FY 2024 is now available on the website of the stock exchanges and also on our company website. In FY 2024, our core operating revenue recorded a 19% increase in operating revenue compared to the previous year, totaling INR 766 crores, which is in line with our expectation. With our PCMC and WTE project now operational, there has been a noticeable drop in our contract revenue. Excluding contract revenue, but including revenue from recyclable and RDF, our total operating revenue stood at INR 829 crores, reflecting a 21% year-over-year growth. The uptick in core revenue is attributable to enhanced operational efficiency, driven by increases in tipping fee and revenue from fixed shifts, trade and household fees. Additional revenue growth was bolstered by contribution from the new C &T project in Panvel and the first full quarter of power sales from waste-to-energy projects. For FY 2024, our Core EBITDA amounted to INR 198 crore, making a 29% year-over-year growth, with Core EBITDA margin of 23%, which is again in line with our expectation, boosting confidence in our stability and long-term growth. Additionally, on the corporate side, the Honorable National Company Law Tribunal has granted approval for the company scheme application filed with respect to the scheme of merger, entailing the absorption of two wholly owned subsidiaries, namely Antony Infrastructure and Waste Management Services Private Limited and KL Envitech Private Limited into AG Enviro Infra Projects Private Limited. This strategic decision is aimed at rationalizing the group's organizational framework. Thank you, and I now hand over the call to Shiju Jacob, Director and our Chief Risk Officer. Shiju, over to you. Thank you, Jose. Ladies and gentlemen, thank you for joining our earnings call for the fourth quarter. I am pleased to report significant improvements on the cash flow front. We have successfully secured substantial collections from our clients in the subsequent period, including payment from a long-standing overdue account. Adjusted for the collections made till date, our March 2024 DSOs would now stand at 79 days, as against the 103 days mentioned in the presentation. This achievement underscores our unwavering commitment to delivering exceptional service to our clients and ensuring timely payment for our efforts. Our diligent approach not only reinforces our financial stability, but also highlights our dedication to maintaining strong, mutually beneficial relationships with our clients. Poorly managed landfills pose risks to waste transporters, such as vehicle damage and delays. At Antony, we proactively mitigate these risks by keeping clients informed about potential impacts on service quality and efficiency, ensuring smooth operations. As landfill operators, we excel in maintaining scientifically managed sites to minimize environmental hazards and comply with regulations. Our significant investment in ongoing monitoring and advanced protocols ensures high standards and addresses any unforeseen challenges with expertise and resources. We prioritize safety, addressing human and machine-related accidents through stringent safety protocols, comprehensive training and regular equipment inspections. The commitment safeguards our workers, enhances productivity and reduces insurance costs and legal liabilities. In the face of natural disasters, Antony stands out with robust disaster preparedness plans. We protect critical infrastructure, mitigate environmental risks, and ensure the safety of our employees and communities.... demonstrating our resilience and dedication to excellence in waste management. As we close FY 2024 and move the bulk of our capital expenditure phase for existing projects, we are confident about reaching significant milestones. This confidence is bolstered by the launch of our construction and demolition processing project in Mumbai and increased power sales in PCMC. I am pleased to inform that we have already successfully tested the C&D plant, and it met all the performance parameters positively. Additionally, we will commence commercial operations at the CIDCO bio-mining site in the first quarter of FY 2025. Our company remains dedicated to environmental sustainability and delivering value to our stakeholders. As we look to the future, we remain committed to driving progress, fostering innovation, and achieving excellence in all our endeavors. Moving on to the operational aspect, let me get Mahendra in. Mahendra, over to you. Thank you. Thank you, Shiju. I'd like to provide an update on the operational performance of Antony Waste Handling Cell. During this period, we effectively managed 1.14 million tons of waste, demonstrating a notable 10% year-on-year increase. For the full year FY 2024, we managed 4.67 million tons of waste, marking a 12% year-on-year increase. This growth can be attributed to the successful execution of operations in newly acquired contracts, improved volumes at existing collection and transportation sites, and an uptake in tonnage processed at our waste processing operations. In the collection and transportation business segment, we handled 0.47 million tons in quarter four of FY 2024, reflecting a strong 15% year-on-year growth. For the full year FY 2024, our corresponding growth was 13% on year-on-year basis. Furthermore, our waste processing business managed 0.67 million tons in quarter four, 6% increase over the previous year. For the full year FY 2024, we managed a year-on-year growth of 11%. The company's defining moment in the fiscal year 2024 was the first commissioning of the 14 megawatts Waste-to-Energy plant in Chinchwad. The plant is running successfully since then and achieved an impressive plant load factor of approximately 71% during its inaugural first quarter of operation. This marks a significant milestone, and the company aims to stabilize its performance at about 80% going forward. This Waste-to-Energy plant generated over 37 million green units of electricity, which highlights the plant's significant contribution to sustainable energy production. Each green unit of electricity generated from renewable sources help reduce... helps in reducing our reliance on fossil fuels and minimizing carbon emissions. The success of this Waste-to-Energy plant in generating green energy underscores our commitment to environmental sustainability and our role in promoting cleaner, more efficient energy solutions. This achievement not only supports our revenue growth, but also aligns with our mission to foster a greener future through innovative waste management practices. During FY 2024, we also achieved a record RDF sale of 147,000 tons. This indicates that our RDF has a very high calorific value, making it suitable substitute for coal, thus aiding cement companies in meeting their alternative fuel requirement objectives. We foresee continued growth in RDF sales. Additionally, we sold around 10,000 tons of compost during FY 2024. Highlighting some of our business development activities during the year, the company successfully secured key contracts across various business segments. Among these, the company signed a contract worth approximately INR 386 crore for a collection and transportation project of municipal solid waste in Panvel Municipal Corporation. Notably, Panvel Municipal Corporation will procure the entire infrastructure for the project, making it an asset-light model for the company. Another new project in the processing space was the company securing a bio-mining contract in CIDCO, valued at approximately INR 77 crore, in which the company will process about 860,000 tons of legacy waste over two years. On the ESG front, in terms of emissions, our Scope 1 emissions totaled about 24,590 tons of carbon dioxide equivalent in FY 2024. Our Scope 2 emissions was 4,162 tons. Our commitment to emission reduction is evident with avoided emissions of 2,787 tons. In conclusion, these accomplishments underscore our steadfast dedication to environmental sustainability, innovation, and the creation of a greener future. We anticipate the core revenue growth to continue, driven by several key factors. The first full year of operations from our waste-to-energy plant will significantly contribute to our revenue. Additionally, the company will commission its first construction and demolition plant in Mumbai shortly, which will further expand our product portfolio and enhance our financial performance. The ramp up of the work at our sanitary operations is also expected to support this growth. Furthermore, with the elections behind us for the first half of the year, we expect to see positive traction in the announcement of new tenders. This post-election period typically brings increased government activity and investment in infrastructure projects, providing us with more opportunities to secure new contracts and expand our business. Thank you. And I now hand over the call to N.G. for financial highlights. Thank you, Mahendra. Good afternoon, everyone. We have seen a significant shift in our revenue mix for FY 2024 as compared to FY 2023, and this is reflective of the commencement of the PCMC Waste-to-Energy plant and the resultant reduction in the contract revenue. In FY 2023, our revenue was distributed as 54% coming from C&T, 20% from MSW processing, and 26% from contracts and other. This has shifted to 62% from C&T, 23% from processing, and 15% from contract and others. In Q4 2024, the company achieved strong growth, with operating revenue rising to INR 196 crores, a 16% increase versus INR 169 crores. On a full year basis, it's reported a operating revenue of INR 766 crores, an increase of 19%. The total operating revenue, excluding contract revenue but including revenue from sale of recyclables and RDF, stood at INR 829 crores, which reflects a twenty-one percent growth year-on-year. The total contract revenue in FY 2024, for reference, stood at INR 43.4 crores, and this compares against INR 171.7 crores last year. For FY 2024, the same was INR 3.13 crores versus INR 21.1 crores in the same period last year. The growth in operating revenue is equitably distributed across operational efficiency and the new contracts, as mentioned by Jose and Mahendra. In terms of consolidated core EBITDA performance, the group demonstrated a growth of 15%, achieving INR 43 crores in Q4 versus INR 30 crores in the same period last year, and the margins stood at around 20%. For FY 2024, the company has exhibited a robust 29% growth in Core EBITDA, reaching INR 198 crores, with a Core EBITDA margin of 23%, as was in line with our expectations. Interest costs have jumped from INR 26.6 crores to INR 39.5 crores, while depreciation has risen by 37%. These increases are primarily due to the commercial start of the Waste-to-Energy project. As of March 2024, the company's group debt stood at INR 414.6 crores, and the net debt is at around INR 343 crores, indicating a net debt to equity of around 0.5x. The weighted cost of debt for the group stands around 8.5%. On the tax component, during the year, there has been a significant change. We would like to clarify on that. The company has conducted a comprehensive evaluation of its deferred tax position as of March 31, 2024. As a result of this thorough review, the company has decided to de-recognize the non-recurring deferred tax liability associated with the available and distributable surplus at a key subsidiary. This decision reflects a detailed assessment of our financial standing and aligns with our commitment to maintaining an accurate and transparent financial record. By removing this non-recurring liability, we are better positioned to reflect the true financial health and the potential of our subsidiary, ensuring clarity and precision in our reporting. Finally, I would also like to provide an update on the income tax search that was conducted in the company in 2021. We have received a total claim from the authority amounting to INR 9 crore. This represents about 9% of our annual profit for FY 2024. Our dedicated team is diligently planning to contest this claim through CIT Appeal. We are committed to ensuring that our position is appropriately presented, and we'll pursue all necessary avenues to address this matter effectively. We'll keep you informed about any further development regarding this issue, as transparency and communication remain paramount in our approach to managing such challenges. That is all from our end, and now I would like to 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 touchtone phone. 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. Our first question is from the line of Bhavya Gandhi from Dalal & Broacha Stock Broking. Please go ahead. Yeah. Hi. Thank you for the opportunity. Sir, can you just repeat the gross and net debt figure? Hello, am I audible? Sorry, you are on mute. The total gross debt was INR 414.6 crores, and the net debt is around INR 343 crores. INR 343 crore? Yeah, 343. Okay. We have a cash of around INR 70-odd crores. Okay, got it. And, sir, with respect to your revenue for FY 25, you mentioned that we'll see full year of Waste-to-Energy. So how much revenue are we expecting from that? So normally, based on the tipping fee and the rate at which the power being sold, we would be looking at anywhere in the range of INR 45 crores-INR 55 crore, depending upon the tonnage flows and everything. So that is the incremental revenue that we expect from the waste to energy project. Right. And similarly, for the construction and demolition project? ... The area, that would be about INR 30-odd crores in the first- 30 odd crores. The first year. Okay, and we'll be starting somewhere in June. I mean, we will see only nine months of revenue, right? For 2025? Yeah. The INR 30 crore number that we gave it was, is for, if you make a full year annualized basis. Okay. But yes, you're right. We are, likely to commission it in June. Okay. When will the Panvel operations start, and how much revenue are we expecting from that? It's already started. Panvel- Okay. has already started. Okay. How much are we expecting on a full yearly basis? This year, I think we should do about INR 35 crores-INR 40 crores. INR 35 crore-INR 40 crore. Okay. Basically, this would be the incremental revenue or the four, three revenue streams, I would say. No other revenue, which is going to, you know, sort of accrue on our books now, unless there's a new contract. One, which is CIDCO bio-mining, which will be coming in. So- He was talking that only, no? No, the CIDCO bio-mining also. CIDCO bio-mining was- CIDCO bio-mining, how much would be the revenue, total revenue? Sorry, maybe I missed the question. When I said about 35-40 crores, that was for the CIDCO bio-mining project. Okay. How much would be the construction and debris revenue that we are expecting? That one is about INR 30 crore in annualized basis first year. Okay. Okay. CIDCO bio-mining would also be for nine months, if I'm not wrong. CIDCO bio-mining will be, yes. We have already started. So, yeah, you can say close to 10 months or so, yeah. 10 months or so. Okay. And, can you throw some light on the total outstanding dues that we have, and, how much... I mean, have we made any provisions for the year, any doubtful provisions? So the total out, current outstanding is around INR 250 odd crores in the books, and we have made a small provision around INR 1.6 crores because the matter is still under the Amritsar, High Court, issue. So we have created a provision of INR 1.6 crores, but we are expecting a positive update on that once the vacation gets over and the court starts hearing. Okay. And for the, PCMC, we were going to receive some subsidy. And can you throw some light on the status of subsidy, subsidy? So, you're talking about the VGF funding, right, Bhavya? Yes. Yes. That's in the final stage. The municipality has promised that it should come in in the next few weeks. Okay. How much amount are we looking out for? It should be in the range of around INR 35 odd crores, and that will go towards the, completely towards debt repayment. Okay, that will go towards debt repayment. Okay. Any, I mean, can you throw some light on the entire debt repayment strategy going forward? Or will it be still maintained? It will be in the range of around 0.5x. And given the way the debt profile is, we have a steady cash flow from operations, which kind of gives us a decent window to repay our debt, as per the schedule. So if the company doesn't bag any contracts or, doesn't win any new Waste-to-Energy projects, the group would be debt-free in, four years' time. Got it. Got it. And just one last thing, would you like to give any revenue, EBITDA or PAT guidance for next two, three years? Yeah. So on the core operating front, which is excluding the Ind AS, looking at our tipping fee and sale of RDF, we would be in the range of around 20% growth over the next two years, backed purely by our ongoing contracts. EBITDA margins will be in the range of around 22%-24%, given the fact that the contract revenue is off and those were the margin weighing entities. PAT should improve marginally, but the PAT margin, I would say, would improve marginally because, going forward, interest and depreciation will still be heavy for the first couple of years due to the Waste-to-Energy project. So you would be happy with the PAT margin of around 10.5%-11.25% going forward. Got it, sir. I'll get back and thank you. Thank you so much. Really helpful. Yeah. Thank you. You may press star and one to ask a question. The next question is from the line of Ambar Taneja from Geosphere. Please go ahead. Yes. Hi, just a quick one. What is the status of the collection post-March that you just mentioned? And, second year running in a row now, there is no possibility of a dividend, et cetera. So any comments on these two? Good afternoon, Ambar. So on the total receivables front, and as of thirty-first of March, we had a DSO of 103, and that stands improved as of yesterday to 79. So we have realized around 36 odd crore of the current receivables in the 45 days period. Additionally, we have received a large chunk to the tune of INR 15 crore from an old receivable, which is over and above the INR 38 crore from a client who was going through some financial constraints, so that has also been realized. So that is what the CRO was referring to as improving the cash flow strength. On the dividend part, the board is very much aware of this point, and they have discussed this at multiple forums. So I think in, within the next two or three quarters, the board would be in a position to give a direction on that front. Okay. Thank you. That's good. Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa. Please go ahead. Sir, constantly our ROE and ROC has been falling from many years, and this has also coincided with our going public. So any views on how that can be improved? And secondly, sir, why are we not, you know, doing more things but of, of, in e-waste, and then again, you know, vehicle scrapping, and even, you know, this tire recycling and, you know, the many quarters go by, and there's virtually no action on that. Yeah, Mr. Oza, on the first part, on the ROC and the ROE, the main factor for the numbers slightly slipping is mainly because of the large denominator. Over the last three years, significant CapEx has been done for the Waste-to-Energy project and the Kanjurmarg projects, and on the ROE front, the profits have been increasing over the last three years from all the subsidiaries. So that is kind of increasing our equity and the capital employed, and hence, you are seeing the ROE and the ROC being softer than what it was in the past. If you look at the CapEx phase, till 2018, the total assets block was around INR 240-odd crores. Today, we are in the range of around INR 600-800-odd crores of the total assets. The revenue from these, CapEx is now coming in. Over the next three to four years, you will see the ROC and the ROE improve a bit, with dividends being declared by the company. In future, you will see a lower equity base, that can also improve your ROE metrics. On the other question, Mahendra- On the vehicle scrapping and the tire recycling, we have already identified lands, and we are currently closing that land lease deal with the owner. Parallelly, we have also applied for the registration license that we need from the respective government authority. So we have made progress this quarter, and very soon we should also be closing in. I mean, so for the equipment supplier, for the tire recycling, we have already finalized. We just have to finalize some final numbers. On the vehicle scrapping equipment, I mean, we have narrowed down our choices to two vendors, and that also we should be closing by the time we get our approval. Thank you. Sir, how many more waste to energy plants are we targeting all over the country? And what is the likelihood of getting one or two more such large contracts in the next couple of years? So there is one ongoing tender which we are very seriously pursuing, in the city of Chennai. That's a very large, I would not say it's just as a waste-to-energy, because that's a very large waste processing, you can say, park, which they have contemplated. So this is a 20 years, concession period project, which they are likely to increase to 30 years, in which we are supposed to find processing, we are supposed to set up processing facilities for, capacity starting from 3,000 tons per day, going up to 4,000 tons per day by the end of 20 years. So as part of this, we are, required to set up minimum 1,400 tons per day of waste-to-energy and minimum 300 tons per day of bio-mining project. So this is a tender which we are seriously pursuing and, you know, we should be submitting our proposal sometime in July or so. Any other things that we are doing with e-waste? Not so much in e-waste, but as I mentioned, I mean, earlier that we are first focused on getting our bearings right on vehicle scrapping and tire recycling. Parallelly, we have started work on the battery recycling thing. So that is something that we think probably has got little more traction. E-waste, we think, is a bit crowded for the time being, given its size. Sir, what is the kind of opportunity that we have with the private sector? Because we keep always say that, you know, we want to increase the business of private sector in our company, but, you know, there's not much traction on that. So, on this, we are currently, you know, we have sort of finalized one contract with a large FMCG multinational, you know, which is basically- which wants to, which wants us to source and process, rPET, which is a recycled PET bottles, so that they can use it for their, for their plastic requirements. So this is something which, is something which, you know, we have already discussed the proposal with them. We have also agreed on the price. The company is currently getting clearances from their headquarters for, for this project to go ahead. So this is one such venture. Another venture that we are planning- This is part of their EPR? It's part of... For them, it is part of their EPR mandate, yes. Okay. This company would be among the top five FMCG companies of India? Of course. Okay. And, I mean, I must congratulate on that. And also, you know, there's a very good LinkedIn presence that we have, and a page that we maintain. I must also, you know, you know, commend you for that. It's a very good move. Thank you so much, sir. Thank you. Thank you. The next question is from the line of Anupam Gupta from IIFL Securities. Please go ahead. Yeah, thanks for the opportunity, sir. Firstly, on the tire and the vehicle scrapping venture, what sort of if you can maybe discuss the economics of this in terms of what sort of CapEx is required, what sort of margins and IRRs you expect to make, from these two ventures? So we are looking at, I mean, you know, I mean, these kind of capacities are very modular and, and they, they can be scaled up easily. The configuration that we are working on vehicle scrapping is essentially to start with about 50-60 vehicles per day, going up to 100-150 vehicles per day, by year 5. So that's the kind of model that we are working on, and we want to to process both the, the passenger cars as well as the trucks. In terms of investment, we expect an investment of about INR 20 crore to start with. Okay. Okay, that's the CapEx. Because we are not buying land, we have decided to go and lease land, so it's going to be an OpEx cycle. Okay. And similarly for tires? Tires also is going to be in the range of INR 5 crore-INR 6 crore, I mean, depending on how we decide. Because we are going to import tires as well to make the project viable for some of the end applications. So- Mm. Depending, so the investment will also be a function of how much tires we import, but ballpark is about INR 5 crore-INR 7 crore. Okay. Okay. And, fine. And the second thing, which you mentioned for the tender in Chennai- Yeah. Will this be similar to what you do in Kanjurmarg, or is it different than what you do, what you do? As I said, this is going to be a waste to energy, so this will be exactly same as what we have in PCMC, the Pimpri-Chinchwad city. Okay? Here also, like Pimpri, we are working with Hitachi Zosen as a technology wise vendor, as a technology partner. Mm. So that part is going to be similar to the PCMC. Bio-CNG is something that we have not done so far. It's not part of our portfolio yet. Although we have a lot of discussions with lot many other companies as well, but for the time being, we are more likely to go with Hitachi Zosen also for the Bio-CNG module. The remaining part of composting and MRF is going to be similar to what we have in Kanjur. So to answer your question, it's going to be a combination of the Pimpri business plus the Kanjur business. The CapEx should be approximately what here? So we are still working on, because we are still waiting for some critical input, key inputs from Hitachi Zosen, the technology vendor. So maybe we can take that in the next call on when we are- Sure. Ready. And also because this is a tender, so we also don't want to reveal too much about our commercial decisions. Okay. Okay. And the second question is for NG. So now that your contribution from WT or PCMC project goes up in this year, and I assume it is a much higher margin business compared to what you do in C&D, why are we not guiding to a higher margin? Is it because of the new projects being lower margins, or what's the math there? No, no. The reason the margins are likely to be inching up and not jumping is the contribution to the top line. I mean, we will be looking at around 40, 50, 50-odd crores of revenue from the WT, while my C&D business today is around 400-odd, 400-plus crores. So it's, it's not a significant contributor to the top line, but the margin profile definitely shifts. So today, my, if you look at my core business, my revenue share between C&D and processing is around 67 to 33. That will marginally change to 65 to 35. So it's not a significant jump today. Maybe as the business progresses and we shift more to processing, you'll see a significant shift in the margins going forward. The Panvel project which you have, which is where CapEx is done by the authorities, is it safe to assume that that would be 12%-13% margin business? It should be around that because the CapEx is not done by us. So the main is your recovery of your OpEx cost plus the margin over there. So it would be a safer assumption in those terms. Sure. And just one clarification, if you can, if you can, repeat what you said in terms of incremental revenues from each of the project, the four projects which you mentioned, PCMC, Panvel, CIDC and, C&D. For the C&D, the Construction and Demolition business in Mumbai, we said annualized revenue would be about INR 30 crore per year. Okay. The annual revenue will be about INR 30 crore. Okay. For the Panvel bio-mining project, this year we should clock about INR 35 crore-INR 40 crore. Okay. The revenue. The third one was which one? you said- The- The PCMC waste-to-energy? Yeah. PCMC Waste-to-Energy will be in looking at the two revenue streams, the tipping fee and this thing, will be about INR 50 odd crores. That is incremental, right? Not absolute. Incremental revenue. This is incremental. This is the annual revenue. Okay. Yeah. Okay. Okay. These are my revenue. The PC, and the Panvel C&D contract? The Panvel would be, I'll tell you, give me a second, please. Will be about- Thirty-five. INR 35 crore-INR 36 crore. INR 35 crore-INR 36 crore. Okay. Okay, this is helpful, sir. Thanks a lot for the time! ... The next question is from the line of Agastya Dave from CA Oza Capital. Please go ahead. Thank you very much, sir. Am I audible? Yeah. Thank you, sir. I just appreciate the previous speaker. He asked all the main questions, so that's, like, really helpful. Sir, I have just two small questions. First is a clarification. You gave a guidance on revenue side. You said 20%. Did you mean 20% CAGR or 20% cumulative over two years? It will be 20% CAGR. 20% CAGR. Great, sir. Second, sir, now, this waste-to-energy project, what kind of project level IRR do you expect at full utilization? See, it will give us an equity IRR of around 16.09% as per the tender conditions. So the tender gives us a minimum assured rate on that end. But normally, when we bid for such large waste processing projects, we look at a, cost of debt plus at least 300-500 basis points of spread, given the complexities involved here. Right. Right. Right, right, right. So, sir, are there any over and above the contractual minimum, are there any other ways through which you can have better IRRs? Are there any efficiency gains or something that will give you a bump up over and above the minimum guaranteed number? Normally, it could be either from sale of recyclables, plastics, compost, and if there is excess of waste coming into your system, we can shred it and sell it as RDF. These are additional sources of revenue, and these add directly to your EBITDA. So these are what are the bonus points that you might get over the project life. Since the project has just started, it will be very difficult to kind of show any direction, how much, and if any, will be the contribution from these optional revenue sources. Right. Right. Right, right. Thank you very much, sir. Thank you very much for answering all the questions. Thank you, sir. All the best for the next quarter. Thank you. The next question is from the line of Manav Vijay from MB Investments. Please go ahead. Yeah, thank you very much, sir. Am I audible? Yes. Sir, I, actually, I have one, I would say, a question to ask. So for the PCMC project, I believe that the earlier costing that we had for the entire project was around INR 190 crores. Whereas we have ended with around INR 240 crores of total investment in that project, which I believe includes the, in the INR 50 crores of subsidy that you are supposed to receive from the, from the, municipal corporation. It will help us understand how this initial INR 50 crore that you have spent, so will that money, you will get a refund from the, from the municipal corporation, or how that money will be, will be, will be, adjusted, sir? So normally, during the construction phase, the company's project was hit by, due to COVID, so there was a cost and a time overrun. So that has kind of increased the cost due to cement and steel prices rising around 32%-38% respectively. So that has impacted us. But having said that, the tender clearly gives us a minimum equity IRR on our project of 16.09%. So once the project is completed, which is this in, October 2023, we have approved the independent engineer to audit our books, and similarly, approach the client for an increase in the tipping fee, which will compensate us for the increase in the CapEx cost. Okay. You expect this approval of increased tipping fee to come by when? So this is a procedural aspect, so it takes time. And if you're working with the government or municipality, it normally takes at least 2-3 years. But the paperwork is already in process. We've already initiated the discussion, and they have already accepted the request from our end. Okay. And this additional INR 50 crore will completely go in, go as an equity, or it will be, or a part of it will go also as debt? It has gone completely as equity because the company wanted to get the project up and ready. So this was the first Maharashtra waste to energy project under the Green Access. So we prioritize the start of the project, and we completed the project through the internal cash approvals of the company. Okay. Thank you, and all the best, sir. Thank you. The next question is from the line of Partha Mazumdar from Eastern Financiers Limited. Please go ahead. Yes, sir. Am I audible? Yes. Sir, I'm new to the company. Sir, can you please explain why the contract and others, that revenue is down? I couldn't actually get that. So the contract revenue is primarily an Ind AS 115, which reflects that under a DBO project, whatever capital expenditures that you do, doesn't get recognized as land and building or plant and machinery. It gets recognized as a right to charge to the client, and hence, any CapEx that we do during the construction phase gets institutionalized as a revenue line item, and that is reflected as a contract revenue. So, as the construction phase gets over, the contract revenue goes off, and that gets reflected as an additional core operating revenue since you start generating revenue from the tipping fees and sale of power. So in the past, last year, we had a contract revenue of INR 171 crore, which was the construction phase period. During the current financial year, we have already completed the project, so we could recognize only INR 43 crore because that was the last leg of the construction. That is why you see a fall in the contract revenue and the reflective cost of lower contract cost also getting reflected in the income expenses side of the income statement. ... The company has a detailed note on the treatment of the accounting standards with respect to contract revenue on its website. You can ask the investor relations team to reach out to you. It'll help you on that matter. Okay. Yeah. Thank you. Thank you, sir. Thank you. The next question is from the line of Rohan Selson, who's an individual investor. Please go ahead. Greetings. Rohan Selson, yes. I would like to ask you two questions: Could you provide some more elaboration on the deferred tax in this quarter, and will this have any impact on your financials in future? Yeah. Our deferred tax is basically what we had is one of the main subsidiaries, which is AG Enviro. We had a non-recurring significant profit available and distributed surplus or subsidies. And now after a comprehensive evaluation, we have taken a call that the dividends will not be declared from the subsidiary, primarily because of the ongoing CapEx that is happening at the subsidiary level. So once you do an evaluation on this aspect, you don't have to have that deferred tax line item in here, it gets reversed. That is why we are seeing a reversal of the deferred tax position as of March 31, 2024. Incrementally, whatever profit is earned at the subsidiary level in future, that will again attract deferred tax calculation based on the merits therein. So that's how the deferred tax has been reevaluated. Okay. Also, what is the average count of tenders you are bidding for per quarter, and what is the success rate? So this is, the current Chennai one is, is a major tender, which is currently operational. Apart from this, there are, few other C&T contracts that we are bidding for. I mean, couple of them are already, the process is on. Okay, the main thing here is that the most of the tenders actually have been deferred because of the election, and we expect a lot of tender activity, starting from July and August. Okay. Okay. Thank you. Thank you. Our next question is from the line of Bhavya Gandhi from Dalal & Broacha Stock Broking. Please go ahead. Yeah, thank you for the opportunity. Sir, you mentioned something about the rPET bottles. I mean, is it a part of EPR you mentioned? What sort of contract are we looking? Is it more of a service contract, or are we going to undertake, you know, I mean, structured recycling plant itself? It's in two phases. You are right about the EPR part. The FMCG company that you mentioned, it's largely on their part of EPR, because they have this mandate to replace percent of the... to be made from recycled PETs instead of virgin plastic. For them, it's a EPR mandate. For us, it's a collection of contract in the first phase that we have. Yet, so that they are not contaminated. Sir, your voice was not audible in the last part. So you mentioned it's a C&T contract? So for us, I mean, we will be collecting and transporting these bottles before they get contaminated. So we'll be collecting directly from the outlets, from the F&B outlets, as they call it, eating and drinking outlets. Okay. So they are not contaminated. So they will be baled and sent to the processing plant. So that is the first phase. So in the first phase, so far, we have gone for a fee-based service contract. In the second phase, which is yet to be negotiated and so on, I mean, that can come later, which is that how can we actually convert it to rPET granules? So the processing part is something that we have yet, we are yet to discuss, but that's something which is open-ended for the time being. Okay. Sir, this is a firm contract that we already received, and what sort of revenue are we looking out for this one? It's a bit too early. I mean, I think, because as I mentioned earlier, that the company has finalized, the local company, has, they have finalized, the terms with us, and they are just getting their approvals from their head office headquarters. Once they get the approval, we'll get the green light to start and to announce it. This is a Pan-India or specific to any state? I'm sorry. No, this is only, this is only in Mumbai to start with. Okay. But ideally, expand it to other parts of Maharashtra first, and then maybe other states. Okay. Okay. I mean, if you can just directionally guide it... Will it be very big in terms of size, or would it be, you know, just a portion of our revenue? Not very big. I mean, it is, it's, I mean, it's like a typical collection and transportation. It's going to be... See, the total market is very big, but as we mentioned, that we are supposed to collect these PET bottles from the F&B outlets. Okay, so the beginning, it will be a slow beginning to start with, but the total potential that we have found out is huge. So then it can be a sizable business. Got it. Got it. And, similarly, if you can throw some light on the regulation on vehicle scrapping and tire recycling also. Is there any regulation which is going to come up or, I mean, if you can throw some light on that? ... So on the vehicle scrapping, the regulation is already in place. I mean, the central government came with the policy a couple of years ago. Most of the states also have come up with their own version of the policy to support such projects in their states. Since we are interested to set this up near Mumbai, so then we have to follow the Maharashtra scheme. And so the first step is basically that we need to. So they have a pre-qualification criteria in terms of who is eligible. The area, they need to have minimum 2 acres of land, and so on and so forth. So and they need to have, they need to be in the similar business or experience of recycling vehicles, et cetera. So as I said, so that's why, and, and then we have to apply to the transport department to get a license. So today we are at that stage. So that is the regulation part. No, no, from the customer angle, I'm asking, I mean, how the EPR norm is on the plastic manufacturer, plastic waste manufacturer. So what regulation, I mean, how many years after which they have to scrap the vehicle and all those? If you can just throw some light on. Yeah. So there is something which, you know, which, which is, for the petrol vehicles, I mean, it's 15 years, for the diesel vehicles, 10 years. Different states have actually given 2 years of, flexibility to, to end users for the retail customers. Most of the government departments and PSUs have taken a decision to compulsorily follow that 10, 15-year rule, right? So that's the, that's the thing from the point of view of a steady flow of stock coming in, for which, one has to work with, retailers, one is to work with dealers, we have to work with, in, the insurance companies, we have to look at the impounded vehicles, with police to find such listings. There are also, the public sector is typically auction it. So you have to participate in that, those auctions to get that free stock. Otherwise, you also have to do a B2C, you need to have a B2C network so that people think of you as and when they have a vehicle to scrap. Right. And just on the TV interview, CNBC TV interview, you mentioned that it is almost an INR 8,000 crore core addressable market. So, I mean, what sort of revenue are we looking out over there? So as I said, I mean, it all depends on the capacity and how is it you are talking, that's one, one starts with. We want to start with about 50 vehicles per day, a combination of cars and trucks. So I think we can have an entity get this kind of supply with this kind of these number of vehicles. I think we can clock almost 80-100 crore INR of revenue. Okay. Okay, and similar sort of EBITDA margins that we have for our existing business? Yes, it should be the same, but it was a question. I mean, I think, yeah, because some of these businesses are just emerging, they're evolving. So much also depends on, you know, how hungry we are, I mean, you know, whether we want to, how aggressive we are to get more and more vehicles. So margin will also play a role there. So on the ROCE front, it looks crazy. Almost 100% in the first year itself. I mean, INR 20 crore of EBITDA, even if you extrapolate on a INR 20 crore investment, it's, I mean, it's, payback period is just one year. No, it could be, I mean, the EBITDA margin actually is very low here. Low. Okay. Would you like to share some number on that front? Again, it is too early, but let me just give an example. I mean, when you, let's say you procure a car, okay? At for INR 25-INR 30 thousand, okay? Right. So if you strip that vehicle, I mean, so there is a process. I mean, it's a very technical process of how you take out the liquids, so that, you know, all what's called the depolluting stage. And after that, you have to strip it in a particular manner to take out the steel, aluminum, and so on. Steel is the largest, you know, largest component, which is... So how you extract, at what price you are selling steel, is, you know, so that difference is what is, is, is a real thing. So the sourcing of these vehicles is the key. Okay. Because the cost of scrap steel is almost known. I mean, you know, it's traded openly in the open market. Okay. Got it, sir. Got it. Great, sir. Looking forward to more updates on this, about new businesses. Thank you so much. Yeah, that's it from my end. Thank you. The next question is from the line of Shreyansh from Arcadia. Please go ahead. Yeah, hi. Thank you for the opportunity. I just wanted to ask two questions. Like, when was our Panvel C&T contract has been started? It was started on November 1, 2023. So, in this quarter, we have got this full quarter for revenue from that contract, but why are the C&T revenues flat and not even there is no effect in volume side? On a year-on-year basis, there is an increase in the volume. Sequentially, it's not significant because during the quarter also, Bangalore, one of the old contracts, got expired and we didn't renew it. The revenue loss from Bangalore is offset by the revenue gain from the Panvel and other contracts. Okay, so Bangalore is expired, right? Okay. And on processing side, like we can see the PCMC Waste-to-Energy plant is gaining its PLF part, and it's around 65%-70% now. So when is the decline in processing volumes also because I've seen much, some increment there. No, so the tipping fee as per the contract, I mean, it is fixed. So it only, you know, will have the first escalation after 12 months after the, after the COD. No, but, volume side in processing part, there should be some increment because our PLF is gaining in WTE plant, so more waste is getting processed, but there is a dip in volume. So is there any effect in Kanjurmarg part also? Bioreactor, landfill, and material recovery facility. The Pimpri-Chinchwad works on a Waste-to-Energy, which is a boiler cap, the capacity. So we are anyway taking in around 1,100 tons per week of waste a day. That is what you can process, that's the cap on that amount. So of that 1,100 tons, after segregation, the PLF kind of keeps on improving. So for the first inaugural quarter, we are at PLF around 21%. For the month of April onward, it's actually upwards of 80% for us. So the PLF will keep on improving based on the ability of the company to mix the waste appropriately, improving the calorific value and thereupon. So the inflow of waste has very little impact on the PLF here. Okay, understood. So major effect, the dip in volume is because of the Kanjurmarg part, correct? Kanjurmarg and the Greater Noida bio-mining, which got expired in the last year. So these are the two reasons for the increase in the processing contract. Okay, understood. Thank you so much. Thank you. The next question is from the line of Amit Agicha from H.G. Hawa & Co. Please go ahead. Yeah, good evening, sir. Am I audible? Sir, your sound is- Yes. Go ahead. Okay. Am I audible now? This is better, sir. Please go ahead. Yes. Yeah. Congratulations, sir, for the INR 1 billion profit mark. I wanted to ask about the vehicle scrapping business, which you all are entering into. Will you be entering into the two-wheeler vehicle scrapping as well? So to start with, we are still looking at cars and and trucks to start with. Okay, and in the Kanjurmarg site, is the company thinking of, like, the waste to energy plant? That is something that we are in discussion with BMC. And because of these elections and this because bureaucrats got busy, so that's why it is taking this thing. But after sometime in June, we are expecting their reply on this. Okay. Company will be needing some CapEx over there as well? Yes, we have to plan for that CapEx. Okay, sir. So maybe the details might be coming in the coming call, in the quarter? Yeah, that's right. Yeah. Thank you. Thank you. Ladies and gentlemen, due to the time constraints, this will be the last question for today. I would like to hand the conference over to Mr. Jose Jacob for closing comments. I wish to convey my heartfelt congratulations to our committed team, whose tireless effort has played a pivotal role in accomplishing our goals. My sincere appreciation goes out to our valued clients and stakeholders for their unwavering support. Together, we have forged a robust and successful company, and I'm optimistic that our path towards a cleaner and greener future will be marked by continued success. Thank you to everybody. Thank you. On behalf of Antony Waste Handling Cell Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.