Please note that this conference is being recorded. I now hand the conference over to Miss Priya Sen from Go India Advisors. Thank you, and over to you, Miss Priya Sen. Thank you, Vivian. Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited Earnings Call to discuss the Q3 and nine-month FY 2023 results. We have on the call, Mr. Harendra Singh, Chairman and Managing Director, Mr. Arvind Khandelwal, President, Strategy, and Mr. Rajeev Mishra, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements, and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Harendra Singh take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir. Yeah. Thank you, Priya. Good afternoon, ladies and gentlemen. Thank you all for joining us on the Q3 and nine-month FY 2023 earnings call today. I hope you are all doing well. Since our inception, we have placed a strong emphasis on our bottom line by selecting high quality projects. We are a symbol of trust for all our marquee clients. To build a sizable order book, we are relentlessly working to think beyond the road segment and diversify our business by showcasing our strengths. With the addition of the new DMRC project to our order book, we are boosting our presence in other segments in order to maximize value creation for all our stakeholders. As you can see from our earnings presentation, which have already been uploaded on the website and the stock exchange, our company has yet another strong quarter demonstrating exceptional results. Before I talk about the quarter results, let me give you some updates on the infrastructure first. This year's Union Budget prioritized infrastructure, boosting overall CapEx outlay by 33% to INR 10 lakh crore from INR 7.5 lakh crore. Talking about the roads, more was allocated from INR 2.5 lakh crore to INR 2.7 lakh crore in the Union Budget, which is up 35% from INR 1.9 lakh crore. The budget envisaged an expansion of 25,000 km in the highway network in the current fiscal year. A significant opportunity is offered by the NHAI robust pipeline of 4,500 km of projects, totaling INR 1,14,400 crore in as tenders. Given our strong pipeline execution skills and our healthy balance sheet, we are confident that this tender pipeline will result in significant order inflows for the company in the coming months. Followed by railways, which has received the highest ever capital outlay till date of INR 2.4 lakh crore. The capital expenditure is expected to be spent on a variety of critical projects, including multi-modal stations and high-speed networks. Also, water segment is a focus area of this budget under the Jal Jeevan Mission. In various states, this flagship project of Centre has been allocated INR 69,684 crore, and that is again an increase of 27% over the last year. This year, airport, the Union Budget includes 50 more airports, heliports, water aerodrome, etc., and advanced land fields, landing fields, that could be reactivated in order to increase the regional aviation connectivity. With such a great impetus on infrastructure, we foresee tremendous growth opportunities enabling us in diversifying our order book and entering into new segments. Now, let me start with the quarterly financial performance of the company. Quarter three started on a positive note with a strong economic activity. During the quarter, we touched highest ever quarter top line of INR 1,131 crore, and that is the standalone level, as compared to the revenue of the corresponding periods of last year, last quarter, at about nine hundred and twenty-two crores. The EBITDA during the quarter was INR 189 crore, and EBITDA margin stood at 16.7% in Q3 FY 2023. There is an upward trend seen in the EBITDA margin due to the reduction in the cost of material consumed by 25.2% and the receipt of bonus of INR 15.95 crore. The profit before tax for Q3 FY 2023 was INR 151 crore versus that of Q3 FY 2022 at INR 120 crore. PAT grew to INR 111 crore in Q3 FY 2023 versus INR 89 crore in Q3 FY 2022, showing a growth of 25.3% on a year-on-year basis. Coming to nine months financial performance, that is on a standalone basis, our overall revenue of nine months FY 2023 was INR 2,949 crore, an increase of 13.9% year- on- year from INR 2,589 crore in nine months FY 2022. EBITDA was INR 473 crore in comparison to INR 428 crore during the same period last year, showing a growth of 10.4% on year-on-year basis. In nine months, FY 2023, the EBITDA margin was 16%. PAT margin for nine months FY 2023 was 9.3%. While the profit after tax for the nine months was INR 274 crore, as opposed to INR 247 crore for the same period last year. On a standalone basis, our gross debt as on 31 December 2022, was INR 471.4 crore. This includes the working capital debt, with credit limit of INR 81.9 crore, term loans and current maturities of INR 389.48 crore, and including the NCD of INR 97 crore. At the consolidated level, our gross debt was INR 1,589.75 crore, which comprises project debt of INR 1,118.29 crore. Some of the significant operational highlights on our prominent projects are as follows: I'm pleased to share that we have been declared L1 bidder, and receipt of LOA by NHAI HAM project, worth INR 997 crore. It is a six-lane greenfield Karnal Ring Road project in the state of Haryana. The company has also diversified its order book in the railway and metro segment. Having projects awarded by Delhi Metro, we have received one of the, one of our first metro project, worth INR 412 crore, including the GST, which is in line with the company's objective to diversify its order book portfolio. As of 31 December, our entire pipeline of the unexecuted orders total INR 11,064 crore. We are present in nine different states, and our order book is well diversified, including 61% of our EPC projects and 39% HAM projects. Coming to the progress of the major EPC projects, our progress is as follows: With regard to the DV packages, that is Package 8, we have made a significant progress in this, and about completed around 93.6% financially. The project is anticipated to be finished this February, and we have already applied for the COD. For Delhi Metro Package 9, our completion status stands at 86% financially, which is in line with our completion target in this quarter. In the Mancherial project of Adani, the completion status is 81.5% to 87%, that is financial. We have received PCOD for this project in December 2022, and the entire project is expected to be completed in Q4, except for certain serious works. In the Urban Extension Road of Delhi project, that is Karala-Kanjhawala, we have finished 39.9% of the job, which is progressing according to our scheduled timelines. In Ganga Expressway project of Adani, we have executed 4.9% of the work, and the execution is in full swing in this project. In the Nelamangala-Tumkur project, the completion status is at 4.8%. Moving on to the HAM projects, which are under execution, which are also progressing well as per the scheduled timeline. In the Rewari Bypass HAM project, about 89.97% of the project is completed. We expect to get the provision completion by this financial year. In Raipur-Visakhapatnam Corridor project of AP-1, the completion status stands at 34.3%, which is right on schedule times. Further to the two HAM projects of Raipur-Visakhapatnam, that is Odisha, OD Package 5 and 6, we have accomplished about 19.1% and 23.7% of the project respectively, and they are again moving on right on track. In Khammam-Devarapalle, Package 1 and 2, which we have started recently, project execution stands at 6% and 9% respectively. For all 10 HAM projects, the total equity requirement anticipated till FY 2025 stood at INR 1,273 crore. That includes the equity requirement of recently awarded Karnal Ring Road project. Out of this, an investment of INR 720.3 crore as of December 2022 has already been made, and a projection to invest INR 38.4 crore is estimated in this remaining financial year, that is FY 2023. We would like to update the forum that on monetization of four HAM projects, it is at an advanced stage, with the technical due diligence of these projects is under progress. We are hopeful that we should be able to sign the document formally to conclude this deal shortly, subject to our expected valuation and the satisfactory conduct of due diligence. Other significant developments at the organization level are, as follows: We received a bonus of INR 15.95 crore in December 2022 from NHAI. That is for our Rewari-Ateli Mandi-Narnaul project, and another INR 4 crore bonus is in the approval stage. We are also anticipating to receive a bonus of about INR 4.5 crore for the Rewari-Ateli Mandi project during quarter four. Now, guidance on the bidding, outlook and the business opportunities. We are highly optimistic about the sector's outlook and the opportunities for the forthcoming year. The government's focus on infrastructure is evident from the current budget. Given that we will be entering the election year soon, we expect the focus on ordering to pick strongly. At H.G., we have laid the groundwork for our phase of expansion. The three main areas of our focus are operational efficiency and effectiveness, cost optimization, and timely completion of the project. We are anticipating INR 3,000-4,000 crore order before March, to maintain the order book, which will result in 2.5x the revenue. Furthermore, we have submitted bids for project totaling INR 80,000. We will be submitting, sorry, we would be submitting the bids for project totaling INR 80,000 crore, of which INR 4,000 crore pertaining to railway, INR 2,000 crore from water projects, INR 1,500 crore of metro, and some INR 73,000 crore in the highway projects. The opening of some of the tenders is still pending, which are in the tune of about INR 15,000 crore. Together, the diversification of company's portfolio is well underway. As we have reached the top line of INR 2,950 crore till December 2022, we are hopeful that we will be achieved, the achieving the growth of 22% to 25% in comparison to the last year revenue to endorse our guided numbers. Now, I would like to like the moderator to open the floor for the question answer. Thank you. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Participants who wish to ask a question may kindly press star one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from DAM Capital. Kindly proceed. Yeah. Good afternoon, sir, and congratulations on another good quarter. So my first question is on the revenue guidance. You said 25% for FY 2023, given that the last year base was INR 10 billion, this implies around 50% growth. Is it achievable in the Q4? So what you are looking at, since we are looking at about, say, 25%, which comes around 4,500, so this quarter four has to be where we need to run at about, say, 1.5x of the earlier quarter last year. Yeah, sure. With all the projects under execution and whatever you can see about the monsoon times and the any of the winter times, they are not gone, now gone, and we are running at about, say, almost INR 20 crore a day in many of the projects yielding that particular number. So we believe that 100% we would be achieving the target. Sir, on the bid pipeline, especially for NHAI, I think there is a very muted last nine months. Do you think the Q4 there is a substantial pickup based on the, based on whatever you have? Yeah, for sure. I think, for the first half of this year, nothing much has happened as per the billing and many of the contractual, say, agreement correction modification were going on. Now, you see in December and now in the, this current three months, so around INR 78,000 crore, which we have allocated, looked into to build up, and but there are more than INR 100,000 crore of projects which are at the tender stage. How does inside Ganga Expressway, you know, the execution, especially in FY 2024, there is a substantial part will happen in FY 2024, in the sense, 50% of this order book will get executed in the fiscal year? Sorry, I couldn't get your question clearly. No, sir. My question was on the Ganga Expressway. Mm-hmm. Will that 50% of the execution happen in FY 2024? Is that a fair assumption? Yeah, for sure, because the 27-month duration project, and we started in November, so with that, we need to complete in, by March, sometime by February 2025. So 50% of the execution would be coming, in FY 2024 from Ganga Expressway. Understood, sir. Thank you, sir. Thank you. Thank you. Thank you. Participants who wish to ask a question, kindly press star one. The next question is from the line of Shravan Shah from Dolat Capital. Kindly proceed. Yeah, thank you. Congratulations for the good set of numbers and the highest ever revenue, EBITDA and PAT in a single quarter. So just wanted to understand slightly more in detail in the sense that now we are seeing slightly reduce our revenue guidance for this year to INR 4,500 crore from last INR 4,600 crore. So is it possible that by year-end, we may see even INR 4,400 crore? So ideally from the original INR 5,000 crore to now coming to INR 4,600 crore, and then now we are seeing INR 4,500 crore. And also in terms of the FY 2024, last time we said INR 5,800 crore to INR 6,000 crore. How are the, now the new guidance? Look, I think for this year, the correction has been because of the few delays in the appointed date and majorly because of the Ganga Expressway, which earlier was anticipated to be started by July, and where the shortfall is clearly visible because of that, for INR 5,000 crore to INR 4,600 crore. We still are in that confidence that we would be reaching that number of earlier being guided with INR 4,600 crore, but we are keeping it, say, well within the achievable rate as 100% is what? INR 4,500 crore. The reason behind that was, for 300 towards 300 to 400 was the big reason for the three projects... and we already discussed last quarter. Now coming to the FY 2024, if you see the total orders which we need to deliver or execute into FY 2024, whatever is, was not possible during this year would be added to the next year. So we are keeping our guidance of about 22% to 25%, which earlier was not that number on year-over-year. So which always the INR 5,600 crore, INR 5,500 crore is always, is achievable. Okay, okay. And in terms of the margin, more than 16%, even, even if there is no bonus, so, that is, that, that is achievable? Yeah. Say we are all having all our projects, which are having bearing this margins and on everywhere, so we will not see much of the challenge as far as getting the 15% margin. Okay. And, in terms of a couple of things, just to clarify, the total equity with the new Karnal Ring Road, you said it INR 1,237 crore. What's the requirement? The total equity requirement is now INR 1,237 crore. Earlier it was INR 1,100 crore. Now INR 150 crore is added to that. Okay, and fourth quarter, you mentioned INR 38.4 crore. So, in 2024 and 2025, how much are to be added? It's coming around, say, INR 325 crore and INR 170 crore in FY 2024 and FY 2025 respectively. 325 and? 170. 170. Yeah. If you look into that, INR 73 crore already invested till December 2022. So the balance number is of INR 173 crore. It's being split in 38.5 here, then coming followed by 327, or rather 327 in 2024, and 2025, 171. Okay, uh- To answer your question, INR 1,270 crore was total investment. Out of that, INR 1,720 crore has already been invested. The balance INR 550 crore is only to be invested in the next 27 months. Yeah. Yeah, yeah. Got it. I got the point. Sir, need a couple of balance sheet data points. So, before that, just in terms of the debt, though it has increased by INR 79 crore, by year-end, will it come back to again INR 430 crore to INR 440 crore? Yeah, for sure. This has been an average increase because, see, we initially as given that the CapEx addition, which was our key, key trigger for this particular financial year, which earlier in five years back, we all, invested around INR 250 crore in 2017, 2018. So this year, the major CapEx has been added. So because of that, it is INR 108 crore of debt being added in during this quarter, this quarter only. So the, say, the selling plans or to keep equipment, which are about to be sold, so they are all on cards, and we would be, say, at least INR 21 crore of equipment would be sold. They're sold in this particular, we will be selling in this particular quarter. Then again, if you see to the number, which would be coming down to about 3,425 by the end of this year. Okay. So the data point I need is inventory, trade receivable, trade payable, retention money, unbilled revenue, mobilization, and advance. So the borrowing raise, we have only a three in. That is totally- Yeah. INR 471 crore. Out of the major is the term debt, that is INR 292 crore. Ah! Okay. NCD is also- I need an inventory number, trade receivable number, trade payable number, unbilled revenue, mobilization advance, and retention money. The unbilled revenue, no, sorry, what you are there, one is the debtor balance. Yes. Debtor, inventory, trade payable. Okay. So debtor balance is INR 638 crore. Okay. Okay? And then the mobilization advance is INR 412 crore. 412, okay. Trade payable is INR 630 crore. 630, okay. Inventory is INR 226 crore. 226, okay. These are all assets other than the FDRs and GST deposits and et cetera. The FDR is INR 170 crore, so likewise, it is coming at about INR 653 crore other assets. Yeah. Retention money and unbilled revenue. That is all included, and receivable is included, and unbilled revenue is around, say, INR 582. I would like to add here, this unbilled revenue has gone high in this particular quarter because, so there has been the—What we have executed in Ganga Expressway and one of the project of, this, Khammam Devarapalle. So there, whatever has been executed could not be billed because of the, some GST issues were there, but the invoicing was done in January month. So we have not taken that particular revenue in the, the quarter. Revenue means recognized revenue. It remains unbilled because of that, sir. Sir, you said the unbilled revenue is INR 512 crore. 592. 582, sorry. 59... Sorry, 562? 82, 82, 82. 5, 582. And retention money, so last quarter it was 175. What is the number? It's around, say, INR 190 crore, retention. INR 190 crore. Okay. Lastly, in terms of the, you mentioned that, how much orders that we have bidded, in terms of to-be bidded, INR 80,000 crore that you mentioned. How much we have already bidded and yet to? There are 15,000 of the orders already bid, but we are yet they are not open. So I expect it to be open within the next 15 to 20 days. Okay, okay. Okay. Thank you, sir, and all the best. Thank you. Participants, if you wish to ask a question, kindly press star one.... The next question is from the line of Ashish Shah from Centrum Broking Limited. Kindly proceed. Yeah, thank you for the opportunity. So my question is on the some of the newer segments that we are planning to get into, like railways, you know, water, and metro we recently got into. So what are the margin expectations from these segments? Because typically, when we see the other construction companies engaged in some of these segments, their margins tend to be in probably maybe 11% to 13% range, and they do not, you know, kind of manage 15% margin or 16% margin. So how do we would like to guide on our future margins? See, the project which we are looking into, whether it be metro or railway, so there we are keeping. So that's why you can see, because we are putting our entire trust with the last 1.5 year or so, but we could not succeed getting one, many projects out of this water or metro or railways. But then again, we are keeping very clear eye on that, that the margin should be there, at least which are we are keeping, where 14% to 15%, not less than 14% margins in other sectors, where we can at the entry level, this is at the entry level. And HAM project, as already we have given you that last three years, we have seen the margins at about, say, 18% to 20% that are coming from HAM. The mix of EPC, which we are seeing in, even in EPC of NHAI, we are making margins of about, say, 13% to 15%, that range. There's the averaging out, it is coming at around, say, 16%. Okay. So even on a blended basis, if these segments become like maybe 20% to 25%, we will still be broadly like +15% margins, 15%, 15.5%, at least. Yes. Or closer to 16%. Correct, correct. Okay. Right. Sir, also, you know, more in terms of the asset monetization that you touched upon earlier, if you can just elaborate a little exactly, I mean, at what stage we are. You mentioned something about technical due diligence. So what is the kind of time frame that we are expecting, and any expectation of how much we expect to get from monetization? No, see, as of now, the number is not very clear on it. So you already, in the last call also, we have discussed on it, that the expected valuation is about 1.4 to 1.5 of the equity which we have invested into these four projects. So that is one part. Which is clear, almost, as, more of the clarity has come, thereupon the technical due diligence has been started, because unless that is being principally agreed, so nothing of that nature can be taken up. So we are already into that phase, where most of the things are all aligned. Now, post that, so anything with like SPA and, binding agreement to be signed, so within the shortest period, we expect. So once this everything is over, so within next, within a month or so, we can conclude upon our deal closure, and thereupon, I think the transactions and everything of getting the NOC from the lenders and NHAI, it will take another three to five months. So probably by September end, we believe that we would be able to monetize those assets, and then the actually cash can come in the accounts. Sure, sir. Sir, lastly, can you just tell us in terms of this new HAM asset we've got, so what is the rate at which the financial closure can happen? I mean, what is the kind of ask rate of the banks at this point of time? It's very early to say about it. We are initially getting the offer about, say, 88.3%, 8.5%, so but it's very early to say. Sure. And the equity, debt portion, et cetera, will remain the same? Yeah. There's no change from the historical- Almost will be same. Right. Okay, thank you. Thank you for your answers. Thank you. Another reminder to participants, kindly press star one to ask a question. The next question is from the line of Nikhil Abhyankar from DAM Capital. Kindly proceed. Thank you, sir. Thanks for the opportunity. So, just to clarify once, the bonus income has been around INR 16 crore in this quarter, right? Yes, it is INR 15.95 crore, to be very precise, and that is at the SPV level. See, at the company level, it has been 90% of that, it is INR 13 point some crore. So, sir, if we just add this, that, against the revenue, so the margin is coming out to be around 15.6% to 15.7%? It is 15% point, it is 15.73%, to be very correct. Right. So, sir, are we still seeing some margin pressures? Yeah, I will, I will explain the few reasons that margins definitely at 16% are much visible. The employee, employee cost, which is, gone high in this particular stage, because the projects which we have recently mobilized, and the even the CapEx cost of the camp construction, et cetera, has been done in those projects, which is giving a higher number of that particular expense and, those. So it is coming at because 1% to 1.5% is going into those, numbers. So that will be again being, gradually being spread in the coming, quarters revenue. Understood, sir. Then, about the DMRC project, this is our first non-road project, so, what are the kind of margins that we are targeting? Already I have given the guidance, that is, about same margin, 14%. Okay. Sir, any guidance as to, like, you have mentioned a huge bid pipeline of INR 73,000 crore for routes. So, what can you just give a flavor as to what will be the competitive, competitive intensity right now? Sir, that we cannot just guarantee, but definitely it has been cooled down. We have seen the number of projects where the, like in Karnal Ring Road, there were only two bidders were there. In one of the projects of Haryana, there were only six bidders. So in many of the projects, they are coming at as high as 9-10 or 12 bidders, but many projects are now getting, say, less number of bidders. So which, you know, I believe that, this, good amount of opportunities, good amount of bids are there. With that, it gives us a fair chance that we would be, to say, able to at least 3,000 to 4,000 three projects from HAM, or another, say, another one from railways also, we will be able to get in this year. Understood, sir. Sir, earlier there was talks of the grant being reduced to 20%, so any news around that? No, no, nothing of very concrete outcome is there. It's only a proposal which was discussed, not—as of now, there's no concrete, say, outcome is there. Okay, sir. Just a final question. What is the total equity invested in all the assets that we have identified for monetization? So already I have given that the INR 722 crore is the exactly equity which we have funded, say, INR 720 crore, till December 2022. So projects which are monetizing, the total is close to 343. You are talking of the project which are going to be monetized, four numbers, is for INR 343 crore. Understood, sir. Thanks a lot. That's no problem. Thank you. Participants, if you wish to ask a question, kindly press star one. The next question is from the line of Sarvesh Gupta from Maximal Capital. Kindly proceed. Good evening, sir, and, congratulations on a good set of numbers. Sir, first question, order inflow. So I think, till date, we are at INR 6,000 crore, but I guess net of price variation, it might be somewhat closer to INR 5,000 odd crores. And, Sorry, sorry, sorry. I will just correct. Yes. Net of price variation means these are net of GST numbers, which we have added this year, and the price variation is all there. Whatever price variation, it is going to be paid over and above these numbers. Okay, so INR 6,000 crore net inflow till December from March. Then if we add the price variation, then what is it, that number, sir? Oh, exactly, we cannot presume any price variation on a percentage basis, but as a normal trend, we have seen, like in the, this particular quarter, we have received some INR 87 crore of price variation, so it is going as high as 8% as of now. But usually, the trend is six to eight percent is the trend which we have seen in the past, historical past. Okay. So on top of this INR 6,000 crore, we are guiding for INR 3,000 crore to INR 4,000 crore in this current quarter. So it will make it INR 9,000 to INR 10,000 crore order inflow for this quarter. Is that, is that right, sir? Yes. For the coming year, what is the expectation? See, we are keeping our guidance on that basis, that whatever we will be doing in a particular year, on basis that we would be like to add so as to maintain a ratio of about 2.5x to 3x times the bill, say, order to the bill. Okay. Let's say next year, you are planning to do around- It would be, it would be coming roughly in a range of about, say, INR 8,000 to INR 9,000 again. Understood. Understood. And, sir, on this particular, you know, corporate group from which there has been a lot of media stories, so that occupies a major part of your order book. So any sense on, you know, on these corporate developments, how can they potentially sort of have a negative impact on us, if at all, you know, if you can throw some more color on, you know, are there any risk, sort of mitigation measures here, should anything happen on these fronts? Because this is quite significant part of your order book. Yeah, I understand, yeah, I understand your question. So basically, say, with the recent development, which we have also seen as we have experienced and with, touching upon the authority, where the project is from, coming from UP government, and touching upon their higher authorities, even with the group, we have understood that operationally there is no challenge as far as we are having the all commitment. And there is one escrow account, being dedicated escrow account for the all entire SPV is maintained, where I think there are the three, one is the lender and the client and the group company. So they are all having that clarity, that whatever fund is going to be paid, from that particular escrow is going to, say, EPC contractor or any small liability of that nature. So with that understanding, it is not a big challenge for us as of now, because they have also given the comfort and the authority has also given the comfort of that same side. Any sense on how much will be the lenders contributing to this, which is already tied up, versus how much will be the funds which will come from your client? So ideally, if you see any project of that, where about 36% or +36% is coming from this, UP government, which is coming in the form of grant, depending upon the various stages of the completion of the project. And equity commitment is, commitment is current of coming about, say, 40% of the remaining, portion of that, and balance 60% is coming from the lenders. Okay. So around 15% to 20% of the total is the equity commitment from your client? Yeah, broadly, roughly, it is coming to like that. Okay. These are all tied up already and, Yeah, these are all tied up projects. Initially, all complete closure is there. Everything is done. And there's just, again, you can, I can mention upon it, because there's a time frame for these completion of these projects, so accordingly, it's not that the whole CapEx is going to be affected. It is a company, as a country's CapEx or the state's CapEx is there, which is going to be affected. Okay, so you don't see any impact on this particular chunk as such? I mean, your execution will continue as it is. Yes, as of now, they are already very clear. They have taken the weekly plan, say, monthly plans, and, whatever we are running at about, say, that number, they are very clear on it, that we should add our resources or rather, we should, run at a more, aggressive pace because of the winter and the fog time. In January, we could not do, much in that. So that is how, again, the clarity is there. Understood. And sir, on the HAM projects of INR 340-odd crore, I think the expectation which was there in previous quarters was that in quarter four, we should be able to materialize these sales. So now it seems like, because of our valuation expectation, we don't know the, where, the timelines for these. No, no, I have given the timelines, that the discussion is at a very advanced stage. The due diligence means it is a proper technical due diligence is in play at a very advanced stage. The discussion is almost, almost concluded. By this financial year end, as it was already discussed, that we would be concluding our deal, and thereupon it will take another six months for exit. But valuation is not a concern. That, that has already been sorted. Is that the right understanding, sir? Normally, it is being principally agreed upon. The fair absolute number I cannot just give right now, but it is supposed binding agreement and this SPA, only which can be disclosed. Understood. And finally, on the NHAI pipeline, sir, so it has been, like, quite strong for a long time now, for many quarters, and but we are not seeing much on action, which is slightly counterintuitive also, because as you rightly said, election is there. So, you know, it could have been preponed rather than, you know, this, all this pipeline getting stuck and sort of not being given out and/or given out very close to the elections itself. No, I think, I think it is very clear because NHAI has given the clear indication to all the concession and contractor to run, to increase the execution rate as of now, which is quite low. They have also indicated there are not many projects which is coming as of right now to be bidded and in the bidding pipeline as well. So it's hardly a matter is an election year or whatever. So what, what is not visible is, they are continuously awarding the projects, but it's a lot many companies who are not in the listed entities or not in the public domain, so they're getting the projects. So it's not that the bidding is not going on. Bidding is going on. Okay. So we are confident of getting this in- Yes, yes. as per our pipeline expectation in the coming quarters? Correct, correct. Understood, sir. Thank you, sir. All the best. Thank you. Participants, if you wish to ask a question, kindly press star one. The next question is from the line of Prem Khurana from Anand Rathi Shares. Kindly proceed. Thank you for taking my question, sir. So I think most of my questions are already answered, just a couple of questions from my side. So one was, I want to understand the ROW status for the recent hybrid annuity that we have been able to manage. And if you could also help us with the land status for the two Odisha packages as well. I think we were more like 80-odd% there. So have you seen any progress there? And also in this Karnal project, if you could let us know the land status, please. No, no. So as for the land availability in on Odisha and AP projects, it's more than 90% of the land is available now, and we are running at, say, a decent pace in those projects. And you can see in our total execution, what we have done during this particular, quarter, where significant contribution has come from INR 370 crore from all Raipur, Visakhapatnam, AP, and OD projects. So that is in, this particular Karnal project. Also, 40% of the land is right now available. So by the time we complete our financial closure, or say by May or June, we will be able to get out the entire, 80% plus land. Sure. And the second question was on this Ganga Express, we already started working, so the zero date already come to us. Fair to assume some of these mobilization advances that were supposed to come to us would have- Yeah, we have taken just 1% of the mobilization advance, that is INR 49 crore in that particular project. We have again applied for another 1%. That would be in February and March. We'll be looking forward on that. Okay. So, is it? I mean, you're supposed to get 10%, right? So if you want to do it in 1% each, or, I mean, I thought- So we are, we are okay with, we don't want it all, because all are interest bearing, had it be OD limits or had it be any trends limit on these mobilization advance available. So rather, we would be looking more into this metro, where the mobilization advance is interest-free. Sure. And the metro projects that were taken, would you be required to spend any money, I mean, in terms of any specific equipment that you would be required to buy? I understand- No, equipment, we are already having most of the equipment. It's a very close nearby projects of our Urban Extension Road, Delhi project, is very nearby. So entire establishment, most of the things are all in place. So what is going to be added is a slight CapEx addition of gantry and cranes, that, which doesn't, it is not a very big amount. Sure. Sir, I'm not sure if you gave this number in your opening remark. How much will be the CapEx for the full year, and how much is incurred for nine month? CapEx for the full year, which is right now being, what we have done is also all-time high CapEx because of the phasing out. It's almost INR 243 crore of CapEx done during this financial year. But this INR 243 crore is not only the plant and equipment. If you just take into it, that is the land is again, there are INR 28 crore of land being invested. There are some offices is going to be developed. And camp construction, earlier it was going into the expense, now it is INR 25 crore of camp construction, which gradually is going to be expensed out.... So this is how the CapEx is looking a bit high. Otherwise, we are keeping, maintaining that guidance, that INR 80-odd crore of CapEx would be added in subsequent, and not this year, it's 2024 and 2025. Okay. This year, almost it is done, and worth just INR 10 crore are likely to be added, not more than. Sure. And we're planning to sell equipment worth around INR 20 crore. Yeah, further we are going to sell out some, not less than just INR 25 crore to INR 30 crore of equipment during this quarter only. Sure, sir. Thank you, and all the very best for future. Thank you. Thank you. As a reminder to participants, kindly press star one to ask a question. The next question is from the line of Uttam Kumar Srimal from Axis Securities. Kindly proceed. Yeah, thanks, sir. Thanks for the opportunity. So, my question pertains to the competitive intensity, just you talk about. So, sir, can you let me know, whether competitive intensity has come down both in HAM as well as EPC, or is it only in HAM, HAM projects? No, no. It isn't only in HAM. No, in EPC, it is almost the same. Okay. So it's still 13, 14 bidders are there in EPC? Yeah, we are getting not more than. I said, not less than 20 bidders per bid, and going- 20 bidders? as low as 25% to 35%. Sir, this quarter, our employee cost has increased. So, this will continue the, for fourth quarter also? Sorry? Employee cost has increased in this quarter. No, no, the quarter would be same, same. It all spreads upon your total turnover. So wherever the mobilization was going on, say, we can see in quarter two and three, three, most of the mobilization was done. Because, say, the execution, we are now seeing that if this is not 1,100, it is will be coming at about, say, +1,500. So this way, I think the, the spread is would be, that this employee cost remains the same, but the turnover is more. Okay. And now coming to this here, sir, railway CapEx. So, you would be bidding for most of the railway projects or for some particular projects like station development and all? If you can, We started bidding. Few of those projects we already bidded. The few of them are already yet to be open. So we are keen on that. We will be bidding those projects as well. Okay, okay. Thanks, sir, and all the best to you, sir. Thank you. Thank you. To ask a question, kindly press star one. The next question is from the line of Deepika Bhandari from Phillip Capital. Kindly proceed. Hi, sir. Congratulations on great set of numbers. Most of my questions have been answered. Just to confirm, I think I missed out on that. What CapEx, net CapEx are you planning for FY 24 and 25? CapEx, sorry, equipment CapEx, almost INR 80-odd crore is likely to be added in FY 2024, and INR 80 crore to INR 90 crore, in 2025. So the most of the CapEx which we added this year would be sufficient enough to take up next two, three years of that. Okay, this is net of the plant, which we are planning to sell next year? Sales here is net of, it's net of net addition. Okay, just a last question. When are we expecting AD for, Karnal Ring Road, the new handbook that we have seen? See, as of now, the trend looks like, by June, or if not in June, by September, we will be taking the funding date. Okay, sir. That's it from my side. Thank you. Thank you. Participants, if you wish to ask a question, please press star one. The next question is from the line of Ash Shah, from Elara Capital. Kindly proceed. Good evening, sir. Sorry if I'm repeating the question, but I just wanted to clarify that you mentioned that INR 1,500 crore of revenue, you will do it in Q4? If- Yeah. From where will that, which all projects will contribute more, most of it? If you could just provide a brief break-up. Yeah, sure. I will. It is, major portion would be coming from, if you just take a major project, one is the Urban Extension Road of Delhi, where the yield would be coming in the range of about INR 225 crore. So INR 225 crore, and, say, INR 550-odd crore would be coming from, Raipur-Visakhapatnam, AP 1, 4, 5, and 6, 3, 3 projects, HAM projects. And INR 125-odd crore would be executed in Khammam-Devarapalle Package 1 and 2. There's about 10% of the total project cost there. So, likewise, I think, the Ganga Expressway is coming about, say, INR 350-odd crore will be coming from Ganga Expressway. Okay. And, second question was regarding that you have made some investment in a partnership firm called Safety First. So if you could just provide some details on the same, what is it regarding and, how is it beneficial for us? Yeah, for sure. This is a manufacturing company which usually manufactures the safety crash barriers. So these are the metal crash barriers being supplied to us in many of the projects. So this is the company which we know from last three years. So we found that this is a backward integration in the form of not going into the manufacturing by ourselves, but going into that, it is a dedicated commitment where we would be getting better advantage. And there's a huge growth opportunity in the coming future. Okay. Yeah, that's all for myself. Thank you. Thank you. To ask a question, please press star one on your touchtone telephone. The next question is from the line of C.A. Akash Dhanuka, an individual investor. Kindly proceed. ... Good evening, sir, and congratulations on a good set of numbers. So just wanted to confirm, just one thing, because most of the questions are already answered. This is with respect to the margin part. You said it is, it will be around 15% to 16%. Just wanted to confirm, is this the PAT margin you're talking about or the EBITDA margin? This is the EBITDA margin. PAT margin is roughly about, say, whatever, tax and applicable tax is there, and as, interest and-- you will see the depreciation EBITDA, depreciation and the interest cost, which is roughly coming in at about, say, 3.5% to 3.4%, that range. So PBT is coming in about the 13% this year, twelve. So it would be, say, the PAT is coming in about the 9.3% to10%. That will be the case for the next year, that is FY 2024? This is the same trend which we are keeping for this year as well as next year. Okay. Just to confirm, it will be somewhere in the range of 9.3% to 10%, right? Correct. The top line will be somewhere around, hovering around 5, so INR 5,500 crore-INR 5,600 crore, correct? Right. Okay, okay. Thank you, sir. Thank you for the help. Thank you. Participants, if you wish to ask a question, please press star one. The next question is from the line of Bharat Gianani from Moneycontrol Pro. Kindly proceed. Yes, sir, thanks for the opportunity and congrats on a good set of numbers. I just missed the number, like you mentioned, that you have INR 80,000 crore of projects pipeline. So out of that, INR 73,000 crore is for roads. So what is the balance? I missed that number of balance of INR 7,000 crore that you gave. That is for which segment, basically? INR 4,000 crore out of are from the railway, which we are looking at to bid from, for the railway project. This INR 2,000 crore is the water project, and INR 1,500 crore are the metro projects. Okay, and, so, basically, based on the project bid and, you know, your plan, now you have got a breakthrough in the metro project. So, next year or, say, one or two years down the line, what's your, you know, view that, what's your target? Because, we have been awaiting this point since last many years that, or recently, like, you know, how much would be the contribution of the non-road, you know, revenues in the, in the, sorry, what is the non-road contribution in the overall order book that you expect, you know, in next two to three years timeline? In the non-road segment, what will be major areas that you think, you know, you should be getting the projects? Thank you. So already we have discussed, I think, we are gradually going to increase the, other than the roads, 25% maybe in next three years. Gradually, it would be added. So looking to that, total revenue sharing from these kind of projects would be in a trend or right now, if it is only metro, and then subsequent in year FY 2024 and 2025, we will be able to get, say, many more projects in other sectors. The sectors are like metro, railways, water, and it can be airport even. So going beyond that, if you see that gradually the number from, say, the number in revenue would be coming from these sectors. Okay, okay, sir. Thanks and all the best. That's all from my end. Thank you. Participants, if you wish to ask a question, kindly press star one. The next question is from the line of Shravan Shah from Dolat Capital. Kindly proceed. Yeah, thank you, sir. Sir, appointed date for this metro project will be one to two months from now? This is already declared. It's 23 January. We have already started the work. Okay, got it. And the INR 15,000 crore projects that we have bid, roughly, how much would be the HAM projects from them? Sir, mostly are HAM projects. Few are the EPC, just INR 2,000 crore to INR 3,000 crore of EPC, and all are about INR 10,000 crore are from HAM projects. The remaining, say 20, say about INR 1,500 crore are from railway. This and I think one or two water project. Okay. In that, any specific, any new states that we have already bid, any of the new state? Yeah, we have bid one or two projects in Jharkhand as well. Okay, okay, got it. And sir, any thought or any idea in terms of the Bharatmala Phase Two, when it is likely to be approved, or what could be the size of that? So structurally, I'm trying to look at in next two and a half years, this phase one will be over. So what will be the next in terms of the opportunity size? So this phase one was started with INR 5 lakh crore to INR 6 lakh crore and now close to INR 11 lakh crore to INR 12 lakh crore. So just trying to understand any broad idea, will it be the same kind of a size, INR 10 lakh-odd crore, kind of a Bharatmala Phase Two, and when- I'm not having any big idea on those things, but definitely the discussions and the, say, the plans are very much on that track only. So by, I think, by this FY 2023 or, say by the year end, you would be having, able to get the clear guidance. But for sure, I think, the amount, the 1,500-odd km to be 50,000 km to be developed in that, Bharatmala Two. Okay. Okay, okay. Thank you, sir, and all the best. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to Mr. Harendra Singh for closing comments. So thank you all. I appreciate you all for taking your time out for attending today's investor call. I hope all of your questions were answered adequately. In case there is any follow-up queries, please feel free to reach out to us or our IR advisor, Go India Advisors. Thank you. Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us. You may now disconnect your lines.