Ladies and gentlemen, good day, and welcome to H.G. Infra Engineering Q1 FY 2024 earnings conference call, hosted by Go India Advisors. 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 Miss Sana Kapoor from Go India Advisors. Thank you, and over to you, ma'am. Thank you, Seema. Good afternoon, everybody, and welcome to HG. Infra Engineering Limited earnings call to discuss the Q1 FY 2024 results. We have on the call Mr. Harendra Singh, Chairman and Managing Director, and Mr. Rajiv 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. We now request Mr. Harendra Singh to 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, Sana. Good afternoon, ladies and gentlemen. A very warm welcome to the Q1 FY 2024 earnings conference call of HG. Infra Engineering Limited. We are pleased to welcome you all here today to share the highlights of our quarterly performance, achievements, and our vision for the future. I hope all of you have had the opportunity to review the investors presentation and the financial results, which have been made available on the exchange. The entire country is drenched with the heavy rains, and overall, it, it's much more than expected. Despite of all these abnormal prolonged, which has affected the sector overall, we have been able to meet our expected numbers, though it was slightly less than our expected targets of this quarter. At the same time, we are working on the strategies priorities to overcome these challenges. Performance, quality consciousness, and safety measures remain our key element in our success story, which is deeply rooted in all our activities. As a sector, we have firm belief that the government is expected to continue with its trust on the infrastructure sector, a lion's share of which would be towards the road, highways, and railway sector. Considering the highest budget overlay in this sector and the new initiatives being taken to support the project completion on time, there has been new form bidding in the first phase, but in the next quarter, it will propel and to cover the targeted numbers. Let me start the growth journey of this quarter and give you the glimpse of the operational highlights first. For quarter ended June 2023, our order book stands at INR 11,674 crore, which has established our presence across 11 states, with the EPC segment comprising 43% and HAM segment constituting the remaining 47%. There are the updates on the ongoing projects and talking of the EPC projects, the Ganga Expressway project has achieved approximately 23.5% completion. The project is running well in the time as per the contract timelines. In Delhi UER project, we have made significant progress of around 65.8%, and it is expected to be completed by December 2023. The Nayagarh-Khandagiri project is progressing well and has reached an execution status of 10.6%. The progress of various dam projects is also looking good and moving ahead as per the planned schedule. Below is an update on the same. Progress of total execution of package 5 of Raipur-Visakhapatnam Odisha, OD-5, stands at 43.6% completion. Package number 6 of Raipur-Visakhapatnam Odisha project, OD-6, it is at 46.3%. Again, in AP1 of Raipur-Visakhapatnam corridor, it has reached completion status of 46.7%. At Khammam-Devarapalli package, project one, we have reached, we have achieved, we already achieved 15.3% completion, while in package two of Khammam-Devarapalli, we have reached 24.4% completion. For Rayala-Repalle, we have applied the PCOD, as the project is nearly in completion state, and we are expected to receive it soon. As you know, we have established our footprints in the order book with the diversification and successfully ventured into the railway and metro sector. I would like to touch the progress of these projects. We have completed 13% of DMRC metro project. Execution of this project is going well on track and will be completed as per the contract timelines. At Bilaspur Himachal Pradesh railway projects of RVNL, where we have recently received the appointed date, is progressing well. The Kanpur railway station project, the mobilization is going on a very fast track. Let me now share other significant updates. We have received COD of Maharashtra package 1, 2, and 3 of Morshi. In this quarter, although we have received PCOD of these packages as of 2020, LOA of Kanpur railway station and small project of NTPC has been received on 5 June 2023, and 23 May 2023, respectively. Apart from this, we have also received the appointed date of RVNL many projects on 24 May 2023. For our three new HAM projects, namely, Varanasi, Ranchi, Kolkata Expressway, package number 10 and 13, and Karnal projects, financial closure is expected to be completed in August 2023, and the appointed date will be received in quarter two and quarter three, respectively. In Karnal Ring Road, the land availability is around 86%, and at Jharkhand, package number 13 of Varanasi, Kolkata Expressway, that is around 50%. Coming to the financial highlights of this quarter. At the standalone level, in quarter Q1 FY 2024, the standalone revenue reached at INR 171.3 crores, indicating a notable 19.3% year-on-year growth from INR 1,065.7 crores recorded in quarter Q1 FY 2023. The standalone EBITDA of quarter 1, FY 2024, was INR 204.8 crores, reflecting a year-on-year growth of 26%. The PAT and the PAT margin for Q1 FY 2024 stood at 9.3% and INR 118.4 crores. That is compared to 9.2% and net INR 91.6 crores last year. PAT grew by 21.3% in Q1 FY 2024 on a year-on-year basis. Regarding the company's debt position on a standard basis, the gross debt amounting to INR 665.2 crore, which includes the working capital debt of INR 178.6 crore, term loan and current maturity, along with the trade limit totaling INR 389.6 crore, and the NCD of INR 97 crore. Moving on to the consolidated numbers. During quarter one FY 2024, the consolidated revenue surged to INR 1,351.2 crore, marking a 22.2% year-on-year growth, compared to INR 1,105.9 crore recorded in Q1 FY 2023. At the consolidated level, the EBITDA of Q1 FY 2024 was INR 280.7 crore, displaying a robust year-on-year growth of 41.1%. The PAT margin for Q1 FY 2024 consolidated, stood at 11.1%, resulting in a PAT of INR 150.4 crore as compared to INR 109.4 crore in Q1 FY 2023. The results are significant growth of 37.4% in PAT on a year-on-year. At the consolidated level, the gross debt amount is amounting to INR 2,131.2 crore. The total equity requirement for the 12 HAM projects is estimated to be INR 1,592.6 crore, and that is until FY 2026. As of March 2023, INR 752.58 crore has already been invested, and there is a projected investment of INR 1,407.4 crore in this financial year of FY 2024. Progress update on monetization of four assets is as under. Last quarter, we have signed share purchase agreement of four HAM projects with Highway Infrastructure Trust, backed by KKR. We are awaiting some procedural approvals to close the transaction. We have received lender's approval for two SPVs, and approval of third SPV, that is Gurgaon-Sohna, in principle, is expected by 10th of August. Other condition precedents are either completed or are at advanced stage of compliance. The final approval from NHAI is targeted by 31st of August, 2023. Post receipt of NHAI final approval, we will proceed for the completion of transaction, including the transfer of shares and receipt of the consideration till 30th of September 2023. For the 4 HAM projects, that is Rewari Bypass, Package 4, approval process will be intimated, and the second tranche will be initiated in December 2023 quarter, that is post PCOD of Rewari Bypass. We are optimistic that we would be able to complete this transaction well within the time, and we do not see any challenges in the current scenario. Before I end my speech, let me assure that we would be able to meet our expected numbers of growth with 25% upside in the revenue, and we would bring momentum in the ordering flow with a new project in the tune of INR 7,000-INR 8,000 crore this year. We are working manually on the operational efficiency and execution capabilities to add every penny to our EBITDA and PAT margin. Digital transformation remains on our priority from automation in the plant and machinery, operations, and other vehicles, which will add a lot of value in our financial indicators with a seamless and transparent real-time working environment. That is all from my side. We can now open the floor for the question and answers. Thank you. Thank you very much, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.... We take the first question from the line of Mr. Shravan Shah from Dolat Capital. Please go ahead, sir. Thank you, sir, and congratulations to the team for the, again, robust performance for this quarter. So the first question is just to, reconfirm the guidance, what we have, spoken in the last con call. So on the top line front, we are maintaining the INR 5,500 crore-INR 5,600 crore revenue for this year. And then in terms of the margin, 16% and order inflow, you mentioned INR 7,000 crore-INR 8,000 crore, but the last time it was INR 8,000 crore-INR 9,000 crore, and in, annual report also we mentioned INR 8,000 crore-INR 9,000 crore. So, can you just, reconfirm the numbers? Of course, I think as we have already done around 20% this quarter on a year-on-year, you can see this because of some monsoon early arrival because of this Biparjoy, and that has impacted some of the progress in the project. But definitely, we are very much focused on that that we will be touching upon this 20%-25% progress. That is where we will be reaching up to 4,500. And because the order guidance has been reduced by INR 1,000 crore because we have seen that there have been some delay in the awarding of the project at NHAI and say few other clients. So that is how we are keeping the INR 7,000 crore-8,000 crore. Margins definitely will remain, likely to be remain intact as we have seen to our numbers. So that, seems to be the same range of 16% plus only. Okay. And in terms of the breakup of the revenue, last time you said, INR 2,000 crore revenue from Ganga Expressway, INR 1,800 crore from existing HAM, from the new HAM. So if you can also help us with the, if any change in that number, or if it is same, then it is fine. Yeah, it is more or less same, because in the quarter we have done about INR 5,500 crore from all HAM projects that are majorly four, five HAM projects. In this project of Ganga Expressway, we have done this INR 475 odd crore is coming from this project of Adani Road Transport Limited, other NHAI EPC and DMRC put together. We are very much, very much clear on that, that the SPV and Ganga Expressway and the other NHAI EPC projects are the major contributors, will be the major contributors to this particular year revenues. Okay. And on the inflow front, broadly, how much five thousand crore would be from the HAM? And in terms of the new, other than the road sector, we were looking at close to INR 2,000 crore. So, will it remain the same? Yes, so more or less same, because the INR 1,000-odd crore, we have just taken it as a guidance for this year. Just keeping that, almost 4 months is passed, but then again, it remains the same. Okay. Sir, just want to clarify, in annual report, we have mentioned that we are looking at INR 10,000 revenue in three years. Just to clarify, so that three years starts from end? Shravan, sorry, I couldn't understand your question. Please repeat it. I just want to clarify, in annual report, we have mentioned INR 10,000 crore revenue. I'm sorry, sir, your voice is breaking up. We are losing your audio in between. Is it fine now? Please go ahead. Yeah. Sir, I was saying in annual report, we have mentioned that we want to achieve INR 10,000 crore revenue over next three years. I think these three years should start from or end up from the FY 2025 onwards. Otherwise, if it... Sorry, sir? So this year it is 2024, the running year. We are not considering this year, so it can be post 2025, three years down the line. Okay, okay. Yeah, because otherwise the CAGR is much higher versus normal, what we are talking 20, 25% revenue growth CAGR. So that's why I just wanted to reconfirm. Secondly, in terms of the appointed date, you said that both this Varanasi, we will be getting appointed date in October, December Q3. And for Karnal Ring Road, it would, when we are getting the appointed date and- See, Karnal Ring Road, we also that we already say about to submit our financial closure documents, and by mid-September, we would be getting the appointed date. Jharkhand package 13, it will be a bit early in quarter three, by quarter three end, and definitely followed by quarter, this Jharkhand package 10, quarter four, in January, to be more precise. Oh, Kanpur railway station, it would be by this month we will be getting the Appointed Date. In this quarter two only. Okay, okay. So- May we request you to join the question queue, sir? We have several participants waiting for their turn. Okay, thank you. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your question to two per participant. We take the next question from the line of Mr. Parikshit Kandpal from HDFC Securities. Please go ahead, sir. Yes, sir. Hi, congratulations on a decent quarter. My question is on the monetization part. So, when do you expect all the approvals to come in, and see and, and ensure your approvals understand? And, when do you expect the money to come? Sir, your voice is so, not so clear. Hello, is it better now, sir? Yeah. Yeah, now it's okay, yeah. So I was asking, sir, you, on the, well, on what stage of approval is our, are we for these assets which are being monetized, with KKR? So I think you said that by month end, NHAI approval will come in. So when do we expect the money's final info to come in? See, out of three projects which we already have completed, like COT is done. Two projects have already been sent to their finance department from the operational technical division. Just one project within this week is likely to be sent to them. Finance department normally takes seven to ten days for issuance of this in-principle approval. This is one stage, four stage of NHAI. Post that, the entire formality of, say, put together NOC from all the lenders, and this, again, it will be sent to NHAI. It's a bit delayed, rather about one month delay because of some of the changes at NHAI. But then we are hoping that not, say, if not during the September quarter, but in quarter one, we will say October, we would be getting the funds for these three projects. Okay. So what I was also hearing is that there has been quite some delay now than giving new approvals or NOC. There has been a queue of approval which is still not being given. That's why I was asking this question, that are you because, are you- That was very much, that was very much on the card, but because of the recent changes out there, some from the transfers, say, from the position changes, that there is a delay. Eventually, it's not that, but because it was never in the control. The things are moving well on track. Okay. Because I was asking this question was that earlier, I mean, we have done deal with KKR, and in the past, they have faced similar issue, and earlier we got called off with one of your competitors. So just think to that now that whether the timelines and whether the process have become more streamlined in terms of NOC and approvals coming in from NHAI. They are also putting their future efforts along with us for getting this transaction done. Okay. So my second question is, on the big pipeline, if you can help us understand the rest of the year. I mean, we do understand that even when was saying that the fourth quarter will be mostly Model Code of Conduct, and nothing much can happen in terms of awarding. So from now onwards, August onwards, we hardly have four months left. So how do you think that we'll end up this year? What is the big pipeline from different, agencies or official like NHAI? What is the big pipeline, railways and also what are, so what are we targeting for the rest of the four months? Definitely, yes, four months is one, but as we have guided various times that there's 1,000 kilometers to be awarded this year. So, but it's not so easy. So we are also keeping that, say, our target, announced target, that they definitely if they have been, they will be, they are in a position to able to award even 4,000 kilometers. Then we are keeping that at least some INR 4,000-5,000 crore of project coming from NHAI and balance from SARDP and other sectors. Okay. Have you placed bid for the Pune Ring Road and have you participated in that tender? Sorry? The Pune Ring Road tender, have you participated in that tender? Yeah, we have already applied for the RFQ, and very soon I think they are going to declare the results of RFQ before where the price bid is to be quoted or bided. October and November, I think it will be. So when do we expect the awards to come? Probably by October or by November, definitely, we are looking to award this project. Okay. This is the last question on the station redevelopment, sir. And I mean, are we looking at, at that as an opportunity to build? I mean, so in terms of railways CapEx, so I understand right now we are more on maybe metro side with the track link. So what are the capabilities there and whether in terms of value chain, how are we upgrading ourselves so that we can cover more broader spectrum of awarding from railways? Railways, definitely, there are many projects which we have already recently bidded. So there are of that nature only, where the permanent track linking or so those work, so those type of works are all included. So they are having lot, many projects in their pipeline. We have in Maharashtra and Gujarat or in UP also, we have seen those projects. So for sure, I think the railway, the opportunities are coming in a very say, significant way. Okay. But our scope will be largely related to track link and overhead, you know, so not, and maybe metro. With the kind of joint venture, not really require joint ventures, with MOU basis, where the, say we are aligned with any of the associates for this track linking this permanent job. Station redevelopment, anything we can do there? I'm sorry to interrupt, may be required to- It's already there. There are many projects in that pipeline. But are we participating in that? So that's the last question. Are we looking to participate in station? Yes, we will be keep continuing bidding in this kind of station also. Okay, thank you. Thank you. Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star and one on the touchtone telephone. Participants are requested to use handsets while asking a question. We take the next question from the line of Mr. Chinmay Gandre from Emkay Global. Please go ahead, sir. Yeah, hi, sir. I just wanted to know one thing. In terms of Rewari Bypass, has there been any modification in the contract? Because the percentage of completion, it has changed from Q4 FY 2023 to Q1 FY 2024, what I see right now. What you are saying is, 96% already has been completed. Yeah. So I mean, what I was unable to understand was, 94% is what was showing in Q4 FY 2023, and I think, if I'm not wrong, in Q1 FY 2024, it is showing 86.5%, sir. So just, just- No, there is no error. I think there is one more error, two more errors are there because of the points. I think they are getting it corrected. Because in two of the projects of this RVNL and Bilaspur and as well as Kanpur railway station, the percentage project has been quoted, which is wrongly. Now it is being completely corrected. I mean, yeah, there's no change in the contract or anything like that, right? Yes, yes. All right. All right. And other than this, sir, just, wanted your perspective on, again, I just wanted to reconfirm the guidance that, the FY 2024 revenue, which we have said INR 5,500 crore-INR 5,600 crore, and the EBITDA margin of 16%. I just wanted, to reconfirm the order inflow guidance which you have given, sir. If you could please just, restate that again. Yes, so INR 7,000-INR 8,000 odd crore rupees, we are targeting to add with this. Understood. And, of this, how much are we expecting to be from the, other projects, in terms of railways and metros? We are looking at about INR 6,000 odd crore to be added from these other sectors, other than highways. Understood. But I mean, since we are being conservative and we are thinking, I mean, we are just assuming that NHAI might just do 6,000 kilometers-4,000 kilometers, are we still confident in order to achieve these order inflow targets that we have set? Yes, of course, I think there's not a big challenge with this, that we also have seen the last two years, what we have planned, and roughly, roughly, we would be able to achieve that. The growth is always there, so we would be able to add this number. All right, sir. Yeah, those are my questions. Those are my questions. Thank you. Thank you. Thank you. We take the next question from the line of Ms. Ankita Shah from Elara Capital. Please go ahead. Yeah, thank you for the opportunity. So wanted to understand about the working capital cycle, you know, the debt on account of, you know, working capital requirement has increased. So is this on account of certain projects or, you know, reason for the increase in working capital requirement? See, if you are talking about the working capital base or net working capital requirements? Requirement, so, if I, if I look at the debt breakup, then the requirement on working capital has gone up. Definitely, definitely. Now, you are aware. So the working capital, say, utilization has gone high at this, as soon as we are talking of 30th of June. But again, again, within seven days, it is now coming back to the same range of INR 500 crore. So it is because of a reason, specific reason, that the payments which we are likely to get from SPV and, say, Adani, and one more, NHAI client. So it got delayed for a few days, just 2, 3 days. So that's why it's very for a just a week or 10 days time, it shoots up to that level. But otherwise, it would be in the same range only. Okay. Okay, great. And so, second question is on the RVNL project, Bhanupali Bilaspur. What is the margin that you make in this project, and how are the payments? The payments definitely, as RVNL is a public sector undertaking, the payments are likely to be on, very much on track only. There's no issue as such as far as RVNL, metro or railway projects are concerned. But definitely, the margins which we have put, we have kept in price, estimated about, say, 14%. So that would, that are likely to be there. Okay. Okay, got it. Thank you, and I wish you all the very best. Thank you. The next question is from the line of Mr. Jiten Rushi from Axis Capital. Please go ahead, sir. Good afternoon, sir, and thank you for taking my question. Sir, first of all, can you give us the breakup of equity required in next three years? You have said that in FY 2024, the requirement was around INR 407.4 crore. What would be for FY 2025 and 2026? The equity total requirement, which is around INR 15 into 92 crore, INR 758.7 crore already invested in June 2023. Okay. The current year requirement would be in the range of INR 400 crore, once we would be getting the final date of all the projects and the balance requirement for all five running projects. So that is one, and FY 2025, it is estimated about INR 268 crore, and FY 2026, it is INR 158 crore. Sir, you said that the land available for the Karnal project is 86%, while for the Varanasi Ranchi project for both the package is about 50%, right, sir? No, Package 13 is a bit ahead because there are some, say, there's a foreign player for Package 10 is there the majority part is in forest. So in Package 10, it is a bit low. Okay, so you said 50% for package 13 and not for package 10, right? Yes. Yes, yes. So how much would package 10 be less than 50? Okay, got it. Yeah... And sir, on the current outstanding bid pipeline, so can you highlight, throw some light on the current outstanding bid pipeline, and when are these tenders going to open and, you know, which sectors, if you can break up? Of course, I think, as we have just discussed about MSRDC, about INR 45,000 crore, where we would be looking at about where we are qualified for 30,000 odd crore rupees, this is one bid pipeline, strong one, and that are on EPC. NHAI, for sure, active projects that are on the portal, with the bid pipeline showing about INR 45,000 crore. And sooner, I think more of the projects which are at the DPR stage or their approval is yet awaited from their respective competent authority, they would be there. So these are the two major ones. And then, of course, NHAI, apart from NHAI and these projects, there are not many projects which we have seen in railways, which we are continuously bidding in metro, even we are looking for it. No, sir, my question was any outstanding bid right now, which you have participated, and you are awaiting the opening up? INR 5,600 crore. Oh, that should be in road? Road is about 3,500, and rest is railway. This should open by end of this month? Probably by this month or August end. Sir, can you throw some light on the revenue break up? So, as you said, that, there was a miss in, revenue as against your internal target for the Q1 because of the monsoons. So, but, you are very optimistic that we should be able to achieve the, full year revenue target of INR 5,500 crore-INR 5,600 crore. So, what kind of revenue contribution we are expecting from the, Adani project, like you had guided for around INR 2,000 crore at the start of the year, and probably, from the, you know, the HAM projects? Yeah, already, during the annual call, that around INR 2,000 crore would be coming from this project of Adani; this is roughly INR 2,000 crore. And then balance, majorly, either which are upper term corridor projects, HAM projects, put together, that would be about INR 1,800-odd crore coming from those projects. So this is our other EPC of UER, NHAI and Tumku, and then the metro put together would be the total INR 35 crore. My last question would be bookkeeping question. If you can give me the mobilization, outstanding mobilization advances, retention money and unbilled revenue, that was created as an inventory, if possible? Yeah, sure. You can see the mobilization advance is about INR 285 crore. 285, okay. It reduced by 70 odd rupees from the last quarter. The debtors have gone high, those out, as I already explained, that we have received a significant amount in first week of July only. So debtors is around, say, 975 plus 225 as retention and deposits, so put together 978. So you said 750 is debtor and retention is how much, sir? INR 228. INR 750 and INR 228, correct. 2:20. What will be the inventory, sir, and unbilled revenue? Inventory is around 2, 6, 256. Unbilled, sir? Unbilled? Mm-hmm. Unbilled. 500, 500, something would be just in there. Yeah, unbilled is almost as of last year, last quarter. Sir, CapEx guidance, if you can throw some light on the CapEx? May we request you to join the question queue, sir? Thanks a lot. Thank you, sir, and all the best. Thank you. We take the next question from the line of Mr. Aman Soni from Prudent Equity. Please go ahead, sir. Hi, good afternoon, everyone. So sir, my first question would be on the, you know, asset monetization. So in the previous conference call, you mentioned that it will be, you know, there will be, you know, reduction in debts for about, you know, INR 350 crore. So do you have any, you know, different number or by, you know, in the next one to two quarters, how much, you know, reduction in debt are you, you know, planning? I think, what we have discussed last time, that there would be a likely reduction in the debt, because every quarter, there is an outflow of about INR 55-56 crore. The annuity due payment and terminal payment is there. So it is likely that INR 200-odd crore will be reduced, by this year end, and then likely, say, INR 60-70-odd crore rupees will be added because of the repeat effect during the year. So put together, we would be in the range of INR 425 crore at the year end. So this is the only- That will be the reduction of INR 400-450 crore. INR 425-450. That range would be there for at the year end. So I'm not expecting anything from this monetization of SPVs. Okay, this is excluding the monetization? So that we have not considered, yes. Okay, but, even if you, you know, let's say, you know, consider that once this, you know, deal concludes, then also, you know, there will be a certain portion of, you know, then that will go off. So what will be the, you know, consolidated number, if you could calculate that? What is, you know, just a tentative number. Sorry, I couldn't get your question. No. So you mentioned that this, reduction of INR 400 crore of debt will be excluding the, asset monetization, right? Correct. Okay. So if we consider, you know, the debt reduction from the asset monetization side, after that, you know, what will be, you know, the reduction in debt? We have not factored yet, as of now. Okay, all right. No issues. So my next question would be on the Varanasi-Ranchi-Kolkata project. So there were certain news reports like going on regarding certain issues with the land procurement. So is your work commenced in this project, and can we expect certain kind of revenue in the upcoming quarter from this, or is there any kind of difficulties? Which project you are talking about? Uh, Varanasi. Varanasi corridor has already, you know, on the fast track. The land possession in which I am talking about 50% land is in our possession. Mm-hmm. With the 2-3 months or rather 4-5 months, maximum the land of package number 13 would be first handed over and then followed by 10. Okay. So, significantly, from the second quarter, certain amount of revenue could come in from this project as well, right? The third quarter or fourth quarter, some revenue, some portion of the revenue is likely to come from these projects. I see. We are expecting quarters 3 and 4, the revenue will be coming from this Karnal Ring Road. Okay, all right. Thank you very much. Thank you. Thank you, sir. A reminder to all the participants, anyone who wishes to ask a question may press star and one. We take the next question from the line of Mr. Sarvesh Gupta from Maximal Capital. Please go ahead, sir. Hello. Good afternoon, sir. Sir, on this order, inflow guidance of INR 7,000 crore-INR 8,000 crore now, I think, till now we haven't received much, this financial year, and then Q4 is also most likely going to be a washout. So and you are saying around INR 5,500 crore is the outstanding bid, which is expected to open this month. Assuming that we win maybe INR 1,000 crore-INR 2,000 crore from here, what is the remaining sort of a pipeline that is there, for you to win further bids in the coming five months? So this, pipeline as per NHAI and MSRDC and other railway or metro projects is already there. This is almost a good number. It's almost, INR 150,000 crore odd is there. Out of that, we are targeting to bid around INR 90,000 crore odd. So there we are looking into that the bid strike ratio, if, the, the historical path we have seen, that we will be able to make out at least, say 7%-8% of, at the bid strike ratio. We would be able to hit that number. These are the bids which are expected to be done by end of this calendar year itself? Yeah, of course, by the year-end, we are expecting the quarter two, three and four. We are, out of these eight months, we are expecting to have this one or year. Understood, sir. And sir, on the Ganga Expressway, any further updates in terms of your payments and the project, sort of a thing? Is everything on track, or are there any- On track. As, since you have seen that we already executed INR 475 crore during the quarter, which is running about INR 160-INR 170 crore on a per month basis. So this is well on track, we are getting the payment well on time. So just 45 days, maximum 45 days timeline of the payment. Understood. The new gross block that we had added, which was quite significant, in terms of the construction equipment. So is that helping us to sort of improve our margins because of lowering our dependence on outside vendors, in terms of your EBITDA margin, because, you know, now some of the operational costs would have been converted to CapEx related costs? To some extent, yeah, to some extent it is helping, but not to the larger extent. Definitely, these are all the internal strategic backward integration and forward integration, which we have done, some operational efficiency improvement through technology. So this is all helping us. We are able to do a decent utilization on these equipment? Yeah, definitely. These are all put to use, and we are getting the most benefit. Most of the benefits are coming from that angle only. Understood. Understood. Okay, sir. Thank you, and all the best. Thank you, sir. A reminder to all the participants, anyone who wishes to ask a question may press star and one on their touchtone phone. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touchtone telephone. We take the next question from the line of Ms. Akshada Deo from Vivro Financial Services. Please go ahead. Yeah, hello. We want to know, the margin guidance that was given was around 15%, whereas the company has been able to do roughly 19%-20% EBITDA for the last few quarters. Is there a reason we're expecting a bit? I couldn't understand your question. Hello. So what you're saying is? Yeah. The margin guidance that you are giving for the upcoming year, the top line, with INR 5,500 crore-INR 6,000 crore, top line expectation with 15% margins. Right? Again, I'm sorry. Sorry, Ms. Akshada, you're sounding, your voice is not very clear, ma'am. If you are in a headphone, I would request you to switch to your handset and talk. Yeah. Am I audible now? ... Yes, yes, not much better. Okay, okay. So the top line expectation for this year is roughly INR 5,500 crore-INR 6,000 crore, right? With a 16% EBITDA margin guidance. It's roughly INR 5,500. Should be very specific. Right. And with a 16% margin guidance. Correct. Is there a reason that we're expecting a dip in margins? Because you've been able to do roughly 20% consistently for last few years. I think it doesn't matter, margin with respect to the top line. So all the deployment of the resources, efficiency, operational efficiency, design, so put together, everything matters. It hardly depends upon the top line, INR 5,000 or INR 6,000 or INR 7,000. We are keeping our eye focused that we should be aiming at those projects where the margins are in good and as well as we, decent growth in the top line can be maintained, as a part of our sustainability. Okay. So do you expect the current margins that you received in this quarter, are they sustainable for the rest of the year going forward? Yes, of course. Okay. Thank you so much. Thank you. Participants are requested to use answers while asking a question. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touch-tone phone. We take the next question from the line of Mr. Ashish from JM Financial. Please go ahead, sir. Yeah, good afternoon, sir. So just one question, has there been any change in scope or increase in scope in any of the HAM or the EPC road projects that we are executing? Yeah, definitely. There has been some changes from INR 200 crore of variation orders has been issued in 2, 3 projects. Okay. So would it be possible to just break down this INR 200 crore into the individual projects? Even approximate number should be okay. Ready, I'm not having this breakdown of the INR 200 crore. No problem. Together in all the NHAI SPV projects, this is like that. No problem. That's all. Thank you. Maybe I'll just get in touch with Rahul, sir, for more details. Thank you. Thank you, sir. The next question is from the line of Mr. Uttam Kumar Shrimal from Axis Securities Limited. Please go ahead. Yes, good afternoon, and thanks for the opportunity and congratulations on good set of numbers. So what is our CapEx guidance for FY 2024 and 2025? Twenty-four, five? Yeah. CapEx guidance for FY 2024. Yeah, we are expecting about, say, 20%, year-on-year, so roughly it would be about 5,500, that one. No, no, sir. This is CapEx guidance, I am asking. Yes, CapEx, roughly it would be in the range of INR 100 or 200 rupees. for FY 2024 and 2025, both or Yeah. Same number will be? Sorry. For FY 2025, also INR 100 crore or more than that? No, it would be likely the same. Okay, okay. Okay, sir, that's all from my side. Thank you. Thank you, sir. We take the next question from the line of Mr. Shravan Shah from Dolat Capital. Please go ahead. Yes. Sir, what is the trade payable as on June? Trade payable is roughly around INR 680 crore. And you mentioned, sir, retention money is INR 228 crores. So in March, it was INR 111 crores. So any specific reason, sir, retaining current? This Adani project do have that retention money recovery, which is, say, significant high number is there. So but then again, we would be able to get this back through a replacement, through bank guarantee. Okay. So, this INR 400 crore plus execution, what we have done, so there we 110, 120 or crore kind of a retention money. Is it my understanding right? So retention and performance deposit, there are two kind of deposits. So earlier in last year, March number, it was roughly around INR 170 odd crore, 178 rather, and now it has gone high, INR 50 odd crore, which is within this quarter only. Okay, okay. And you mentioned, because of 2-3 days, this working capital has increased, so the date number, which is INR 665 odd crore as on June, so now this should have come back to INR 450 odd crore? This again, coming back to normal, it's roughly about INR 450-460 crore, and by the year end, we would be having that, say, guidance number is 425-450, not more than that. Sorry, sir, I didn't get that. Can you... If you can, repeat the same thing? So, as of thirtieth June, it was being deployed on the higher number, but ultimately, it has now coming back to the normal, and it is in the range of about INR 425 crore-INR 470 crore, that is it. Okay, got it. Yeah, any, sir, on coming back to the bid pipeline, so it's to bid for INR 10-90,000 crore kind of projects. But any specific, if you can, if you want to highlight in next 2-3 months, is there any sign that this much we want to... Because I'm just trying to understand that post the code of conduct? Is there a possibility in terms of avoiding those slowdown? So by till February 2024, I don't see there's a big challenge, but they are also having the big clarity. So that by the time the Model Code of Conduct is being introduced or implemented, so these all orders are, they will they are having ample number of big pipeline readily, and with a few changes in the at the NHAI level, you can all understand that this could not happen that easily. But we are quite hopeful, and that would be done. Okay. And sir, any idea in terms of Bharatmala Phase II, where it is, when it's likely to be? There's no update as of now, very recently. There's no update. Okay. Got it, sir. Just in terms of— Sir, may we request you to join the question queue, sir? We have participants waiting for their turn. Okay, thank you. We'll take the next question from the line of Ash Shah from Elara Capital. Please go ahead. Thank you for the opportunity. First question would be, how much amount have we invested in these four SPVs that we are planning to sell, and how much are we going to receive in FY 2024 in rupee? This is 243 crore rupees is as HGIEL invested into these SPV, and post-monetization, it is INR 531 crore rupees. But that will also include, that is on the EV part, but how much would be the equity value in the INR 531 crore? This is all together equity only. Okay, this is all together equity. Okay. Enterprise value is roughly around INR 1,300 crore. Okay. Second question would be, so in our annual report also, we have guided for 20%-25% from the non-road sector. So do you see any margin contraction in the next 2-3 years as we see our non-road sector order book increase? We are very selective in taking on the call as far as the bidding in the projects apart from the highway. So we are keeping that intake. We would not be going very desperately. That's why we are keeping 25% for three years roadmap, that we are gradually venturing out or taking the projects apart from the highway. So I don't see much of a challenge in maintaining the same margins. Okay. Also, last question would be, can you give the breakup of revenue for this quarter, like price variation and operate O&M, O&M revenue? Price escalation is INR 71.47 crore. Just put, if you can see the number differently there. SPV, they have contributed INR 500 crore, running two projects, INR 494 crore. NHAI, all put together, is roughly around INR 225 crore. Rest is our DMRC and non. Okay. Yeah, that's all from my side. Thank you. Okay. Thank you. Thank you, sir. We take the next follow-up question from the line of Jiten Rushi from Axis Capital. Please go ahead, sir. Thank you for taking my question. So my, my question is more on the competitive intensity side. So as we have seen, most of the players are unable to win projects in Q1. So what kind of competitive intensity can build up in next 3 to 6 months? And how are we placed, do we, if at all we are not able to win projects in the next 2 to 3 months, do you see any kind of a desperation from our side where we try to, you know, grab inflows at a lower margin? Something. Can you throw some light on that? No, I don't see much of a challenge. Definitely, there are many, the professional contractors, they are full of their appetite. The projects are, they are having good number of projects. So we normally have seen the correction. Last few months, we have seen that the lot, number of bidders are there. They were all as high as 15, 20, or even in EPC, 35, 40. EPC definitely, there's not much of an improvement is there and not visible even. But in HAM, on 4 pieces, seeing that 7, 8 bidders are there, ideally. So we believe that, that is all competitive intensity or which was at a very high, cost-cutting aggression was high, but then it's now cooled down. We expect that the margin without compromising and without looking into that margin shrinkage, we would be able to add this number of projects, just about 5,000 or 4,000 highway projects. So basically, EPC, we see, we still see 35, 40 bidders, while HAM is 7-8, right, sir? Yeah. Yeah, yeah. On the road inflows, which you are targeting around INR 4,000 crore-INR 5,000 crore, this should be mostly HAM, or we will get the mix of EPC also, or what is your thought on it? I have issued INR 4,000-odd crore. We are looking from the HAM projects and 2,000 odd, that range from EPC. Balance we are looking at from the other- Other sectors. So, like, so basically 2000, maximum another... Okay. That's it from my side, sir. Thank you and all the best, sir. Thank you. Thank you. Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to the management for closing comments. Yeah. Thank you everyone for bringing their expertise and experience around the table. We appreciate everyone joining us today on the call. Hope that we have addressed your all questions. If you have any other further inquiries, please do not hesitate to reach out to our IR advisors, Go India Advisors. Thank you for the participation. Stay safe and healthy. Thank you. Thank you, sir. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.