Good evening, ladies and gentlemen. Welcome to the IRB Infrastructure Developers Limited conference call for discussing the financial results for the quarter-ended September 30, 2024, along with recent developments. We have with us on the call today Mr. Virendra Mhaiskar, Mr. S. S. Rana, Mr. Sudhir Hoshing, Mr. Anil Yadav, Mr. Mehul Patel, Ms. Poonam Nishal, and Mr. Tushar Kawedia. As a reminder, all participants' lines will be in the listening mode, and after the opening remarks by the management, there will be a question-and-answer session. Please note that the duration of the call will be 45 minutes, and any queries left unanswered after the call can be subsequently mailed to the management for adequate response and resolution. Please note that this conference is being recorded. I now request Mr. Yadav to give an overview for the significant developments during the quarter. Thank you, and over to you, sir. Thank you. Good evening, everyone. I welcome all the investors and analysts to our earnings call for Q2, financial year 24-25. I trust you have reviewed our detailed numbers and presentation. I will briefly highlight the key points for the quarter. We are pleased to inform that IRB successfully completed the tap issuance and allotted $200 million, 7.11% Senior Secured Notes having a final maturity in FY32 at a premium. Proceeds of the notes will be utilized for capital expenditure and/or refinancing of the existing loan available for the capital expenditure. This will further strengthen our liquidity position, thereby ensuring business stability. Being the issuer, IRB was rated Ba1 and BB+ by a reputed international rating firm, Moody's and Fitch respectively. We have received an encouraging response with participation seen from the market investors like BlackRock, Lombard Odier, and HSBC, T. Rowe Price, PIMCO, BFM Partners, Wellington, Goldman Sachs, etc. The notes are listed on India International Exchange Limited, that is India INX. Now, moving to the performance for the quarter, toll collection for the quarter was significantly impacted due to heavy rains across India, with many states witnessing their highest rainfall in this monsoon, leading to flooding. Despite the impact of the heavy rains, toll collection has shown a growth. The Mumbai-Pune and Ahmedabad-Vadodara Corridor reported a 2.3% increase in daily toll collection from 6.25 crores in Q2 of FY 2024 to 6.40 crores in Q2 of FY 2025. In view of the forthcoming festive season, we are optimistic about sustaining the growth driven by the increased travel and economic activity. The second half of the year typically is much better for a toll collection perspective. From a toll collection perspective, for private InvITs, the per-day toll collection has increased to INR 9.94 crores for the quarter-ended September 2024, as compared to INR 6.82 crores per day for quarter-ended September 2023, recording a growth of 46%. This increase is attributed to traffic growth, toll tariff revision, and addition of the new project. Private InvIT has been generating positive cash flow since last financial year and has declared a distribution of INR 64 crores in Q2 of FY 25, which will reflect in the IRB's cash flow to the extent of its holding, that is 51% in the coming quarter. In line with our dividend policy, the company has declared an interim dividend of 10% amounting to INR 60 crores. The total order book now stands at INR 32,600 crores, with the EPC order book approximately INR 4,000 crores. Next two years' executable order book, including EPC and O&M, is close to INR 6,200 crores, excluding the change of scope and utility shifting. CRISIL rating has affirmed its rating CRISIL AA minus stable rating for long-term credit facility of the company. Long-term opportunity in the sector, NHAI has announced the plan to double the national highway from 1 lakh kilometers to 2 lakh kilometers at an investment of almost INR 50 trillion over the next 8 years. Considering the existing high leverage, the authority is likely to increase their portfolio of projects that are being awarded on PPP basis. We expect around 40% of the plan will come approximately around INR 20 trillion on PPP mode. Even 10% of the market share in the proposed PPP would mean an addition of INR 2 trillion worth of projects for IRB portfolio over the period of 80 years. IRB has transformed into a self-sufficient powerhouse, poised with the continued growth and leadership fortification. Our cash flow generation strategy, fueled by asset monetization, two InvITs, and asset churn, that is the best approach that is built, executed, stabilized, and transferred. Supported by our extensive asset portfolio and prudent long-term leverage management, it will enable us to triple our portfolio over the period of 6 to 80 years, building on the established asset base in the financial year 25. As of now, we have an asset base of INR 80,000 crores. In terms of near-term opportunity, a large pipeline of approximately INR 37,000 crores comprising of BOT projects and four TOT projects is already lined up. Although the bidding and awarding process has been slow, we expect it to accelerate in the second half of the current year. With a lower consolidated net debt to equity, we are well capitalized to tap into these opportunities, which will include the significant portion of BOT/TOT projects in the partnership with GIC affiliates and Cintra. We are well prepared and in a strong position to actively pursue these opportunities. We will bid for BOT/TOT, which will be executed through private InvIT, reducing our equity requirement to 51%, approximately 15% of the project cost. Now, I will request Tushar to cover the financial highlight for Q2 of FY 25. Over to you, Tushar. Yeah, thank you, sir. So I'll just take you through the financial analysis of Q2 FY 2025 versus Q2 FY 2024. The total consolidated income for Q2 FY 2025 was at INR 1,752 crores from INR 1,875 crores, down by 7%. The decrease in the construction revenue is mainly on account of the heavy monsoon across all states. The consolidated toll revenues for Q2 FY 2025 have increased to INR 600 crores from INR 588 crores for Q2 FY 2024, registering a growth of 2%. The consolidated construction revenues for Q2 FY 2025 have decreased to INR 1,152 crores from INR 1,286 crores, down by 10%. EBITDA for Q2 FY 2025 slightly increased to INR 933 crores from INR 924 crores, registering a growth of 1%. The interest cost remains stable at INR 434 crores in Q2 FY 2025 from INR 435 crores in Q2 FY 2024. The depreciation slightly decreased to INR 231 crores in Q2 FY 25 from INR 233 crores, and the PBT has increased to INR 267 crores as against INR 257 crores, an increase of 4%. That after share of JV from JV of INR 84 crores has increased to INR 100 crores in Q2 FY 25 from profit of INR 96 crores in Q2 FY 24, an increase of 4%. The cash profit has increased to INR 415 crores from INR 404 crores, an increase of 3%. Now, I request the moderator to open the session for questions and answers. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you may press star and one to ask a question. The first question is from the line of Alok Deora from Motilal Oswal Financial Services. Please go ahead. Hello, sir. Good evening, sir. Just a few questions. First is on the execution, which has been pretty soft, even on a YoY basis, if you see. So just wanted to understand what's happened here. It's just because of the monsoon or any other reason also could be attributed to this? And how has October again been for us, and whether this could continue a little bit in Q2 as well? Thank you, Alok. And as I have discussed in the opening remark, because of the very severe rain, some of the states have even seen the highest rainfall in this monsoon. So that has led to lower execution as far as EPC is concerned. And even the toll revenues were also on the softer side. Yeah, and on the next part, yeah, the execution is now picking up because the monsoon is now over, and we will see a good uptake in the construction execution in the third quarter. Sure. And just a couple of data points. The other income has jumped quite a lot, even QOQ and YOY. So any one-time included in that? So as we discussed last time also, there is a Fair Value Gain impact in the other income, which is falling on account of the fair value of Deferred Consideration receivable from the private InvIT. So it's the one-time impact of that particular element. Sure. And on this share of profit from associate, that is actually the losses have widened in Q2. So that would normalize ahead, or just wanted some color on that? Yeah. So Alok, if you see the second impact, because this fair value impact goes in the private InvIT, and then it comes as a share of JV. So as such, this is one-time impact what we are observing in this Q2. This will not be a normal. This will not be similar going ahead. But yes, whenever there is a deferred consideration, fair valuation accounting, that time this comes as a share of JV in the private InvIT as well from a share of. Alok, just to add what Tushar has said, if you'll refer to our corporate presentation, we have provided the impact of fair value in the first slide that includes the result. If you'll adjust for the fair value loss from Q2 of FY 24 and Q2 of FY 25, the loss from the private InvIT remains at a similar level in spite of three projects being added in this financial year, which was not fully there in the last financial year. That was the Hyderabad ORR and TOT 12 and TOT 13. As you are aware, any project which gets added, they are initially one or two years, those generate the positive cash flow. Because of the amortization, there will be losses. In spite of the three projects being added, there is no increase in the losses from the private InvIT. Got it. Just one last question. So you have, again, in the presentation, highlighted the bid pipeline and across toll and TOT. So just wanted to understand, we are already at October end now. So have projects started coming up, and have we started bidding? Are there projects where we have bid and outcome has not come yet, or it will mostly come from December onwards? So Alok, you are right. This is a concern the entire sector is having on its mind. And if you see, only one TOT has so far seen actual bidding going through. And the other four TOTs are now likely to happen between now and end of December. And the BOT projects also have been getting postponed, and we now expect a few of them to get actually bid out in the third quarter, assuming no further delays are limited by NHAI on this. So I would say that it is moving in a similar direction to what we have seen in the last couple of years, where the bidding activity escalates significantly towards the end of the financial year. Sure. Thanks for that, but we are not changing our order book targets or guidance or anything of that sort? No. Got it. Got it. That's all from my side. Thank you. And all the best, sir. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead. Maybe just one question on. So you indicated that EPC revenue pipeline for the next two years is 60-100 crores. We did about 4,900 crores in FY 2024. So in case there are sort of no wins, how are we looking at EPC revenues for this particular year, the construction revenue for this particular year, as well as sort of FY 2026? Krishnan, as the order book is around INR 6,200 crores for a couple of years. And we also get this order is excluding the utility shifting and change of scope. And typically, ranging from 200- 50-odd crores is the typical execution for COS and utility shifting work. So depending upon that work, one can assume an order book of around INR 7,000 crores to be executed over the period of six quarters. I think we have a visibility for the next six quarters. But considering the doomsday situation, if we don't get over the period of one, one-and-a-half years, we'll not get the order book, then definitely that time EPC will reduce. But just by that time, our O&M revenue itself will be roughly INR 2,000-INR 2,500 crores from the O&M contract, which we have a 20-year visibility. We have a six-quarters visibility. Thereafter, we have visibility in terms of O&M revenue. It will not happen that our revenue will become zero. The EPC revenue will be reduced to 40%-50%. But we are hopeful that we'll bag the order, and we should be able to grow our EPC in line with the growth that we have shown in the past. Sure. And maybe just wanted to understand till what time would we sort of continue to see losses from associates? What are we expecting for the full year? And when does this sort of impact of fair value go away, and the impact of all the new assets come through, and we start seeing cash flow, but we're not seeing profitability? When does that start showing up in the associate line being positive? Is it FY 2026, or would it be FY 2027? I think FY 2026, it will become a positive. I think you are very right, and you have touched upon a very good question. What is happening is these investments today reflect at book value, and the real value that this portfolio is generating is not getting duly captured in the essence of the results to my mind, and the company is working on this because the cash flows are very robust, as you know that we have already started the distribution from this platform, so we are working on it. I think you should see results along those lines sooner rather than later. Sure. And any impact of this new change in toll collection now moving to satellite-based toll collection with first setting 30 odd kilometers, no toll collection, does this impact us in any way, or there is no sort of financial impact? None of the things which you mentioned have become operationalized. These are all academic discussions underway. And none of the toll notifications of any of the projects have seen any change. And to my understanding, these are all futuristic thought processes. The new software or the new technology is much in a primitive testing mode as of now. So it will take some time for that to happen. And as the outcome of the FASTag has been extraordinarily good for the company, we believe the new technology also will further add value to the portfolio going forward. And in terms of the reform, what has taken place in the sector, whether we call it moving from WPI, tariff revision linked with the WPI, and thereafter 3% fixed plus 40% of the HPI, all the changes were with a prospective effect. So ideally, we assume that the changes whenever will happen will happen for the new project to begin with. And secondly, the concession agreement provides adequate compensation in case of there is any change of the regulation. Sure. And just one other thing, the one-time impact of fair value, how much would that be? If I look at QOQ, other income is up by INR 47 crores, and the loss is up by INR 30 crores. What would be sort of the one-time impact in both of them? For this quarter, it was around INR 80 crores one-time impact in the IRB results. Part of it gets obviously adjusted out of the associate. Yes, that's right. That's right. And so I think we've sort of already touched upon, but do you kind of see acceleration of bidding happening in second half? Do we sort of finally see all of these awards picking up substantially? How are we looking at it from, or are there still some uncertainties? Are we at a place where L1s are about to be awarded, or do we still probably think that L1 gets awarded two, three months? So we are tracking more of the BOT and TOTs. And in that, we can say that there are four TOTs lined up for bidding as per the present date before the end of December. And there are six to seven BOT projects which are also up for bidding, which are likely to happen between now and March. So there is a good visibility. And see, you have to understand that all these BOT projects, which have come after a long time for bidding, involve a lot of queries and clarifications that have to come from the client, which are being asked by the prospective bidders. And that entire exercise of understanding the project much better before we put in a bid is what is taking time and pushing the dates of submission forward. But I can say that in the majority of these six, seven bids, most of the iterations are wanting to understand the nuances of the project, more clarification on the scope of work and timelines, etc., have all been iterated now. And we don't expect further more delay in the date of submission now. That's why we believe that between now and March, these six, seven BOTs and four TOTs should see the end of the tunnel. Sure, sir. Those are my questions. That's okay for future quarters. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Parikshit Kandpal from HDFC Securities Limited. Please go ahead. Yes, sir. Hi. Congratulations on a decent quarter. So what will be the sizes of these BOTs, SIFs, which are coming up for bidding? Parikshit, the bidding size of the BOTs are in the range of INR 4,000- I NR 7,000 crores each. Each is INR 4,000- INR 7,000? I'm not able to give you a number because that is the upfront number what we have to quote, but these are decent-sized TOTs as well. Each BOT project will be 4,000-7,000 crores, and the equity requirement will be almost 1,200-2,000 crores for each project. Yes. And as you will appreciate, our requirement falls to 51% of that. And we are very well capitalized because we will be partially redeploying the construction profit back to fund the share of equity. So we are quite comfortable in terms of our ability to fund the equity for the projects that may come our way. How do you analyze this? Will this be on a positive thing like revenue share with NHAI, or do you think there could be some grant element? How does this new bidding which kicks in? How do you read into these bids? Very difficult to say because each of the bids will be different. But largely, it will be grant projects. You're expecting it. But not touching 40% as grant. I mean, it will be much smaller grants. The quota limit is 20% now. The contract is going for highest grant of 20%. So 30% is the highest and 20%? 20. 20% is the highest. Okay. So now we have, I mean, this will require huge outlay, and even we are bidding for TOTs. So in that sense, how do you, between private and so where the assets are getting matured, so how do you look at monetization internally? Because TOTs will not give you much of value addition as the BOTs because BOTs bring in a construction element, and then you reinvest that profit into equity. But since you're also following both the parts, so how do you now look at monetization of the private and with assets, especially the ones which have now some history or are nearing maturity from stability on revenues? You have touched upon a very valid point. And even at the risk of jumping the gun, I would say that yes, we have been working on a BEST policy, as we have always articulated, which is bid-execute, stabilize, and transfer. And while I will not be able to give you a detailed color on what is underway, we are seriously working on this strategy so as to ensure that we at all times will have enough resources to tap the upcoming TOT opportunities and bid on them. And you will see more color of what we are trying to say here in the near future in terms of our strategy to rise to this requirement of Government of India wanting to do asset monetization. And we will be positively supplementing and supporting this initiative. Okay. So how many projects do you think realistically you can win? I mean, there will be limited competition given the sizes of Himangaram. We have never seen, I mean, rarely see these kinds of sizes coming in. So what kind of appetite do you think we can have? You have a partner, obviously, but do you think in terms of order inflows, how much can you take in a financial year? So Parikshit, no cost is attached to wishing. So definitely, we would like to retain our market share that we presently command, which is 34%. So these five, six projects, each is about 7,000, 35,000 crores. You think what? No, no. I would refrain myself from putting a math and a number to it. But guidance-wise, order inflow guidance-wise, I mean, how much? Please do not take this as a guidance, but I'm giving you a roundabout strategy what our wish list would be. Okay. Sure. But we have that kind of appetite. I mean, if we get two or three projects and we need to invest INR 4,000 crores of equity, so that is enough bandwidth on our equity side to do that, take up that. 100%. Okay. Sure. Sure, sir. Thank you. Those were my questions. And wish you all the best. And happy Diwali. Thank you. Happy Diwali to all of you as well. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Prem Khurana from Anand Rathi Group. Please go ahead. Yeah. Hi. Thanks for taking my questions. Am I audible? Yes, Prem. Go ahead. So sir, I mean, most of my questions on the quarterly results are already answered. I mean, I had two questions on the, I mean, observations from the annual report. If you could help me understand those. One was our deferred consideration for stake sales seems to have gone up. I mean, we have not transferred any new assets. I mean, these are all old assets which were transferred long back. Why would we see any increase in the deferred consideration? I mean, I was under the impression ideally they should come down because, I mean, Yedeshi was ruled in half, so I thought, I mean, that money would come to you, and which is where the number should ideally come down over a period of time whenever you get to have that money come to you. But the number seems to have gone up. Second, the thing that I want to clarify was, so when I look at the investments part, some of these assets which are with the private InvIT, we seem to have infused money from our balance sheet. I mean, it's shown as a part of subordinate debt, INR 1,600-1,700 crore invested. I mean, there are multiple entities. So I mean, why would you invest directly in these SPVs that are subordinate debt? Ideally, I mean, it should have gone to private InvIT, and then private InvIT should have invested money, right, if there was any requirement. Why would we use our balance sheet to kind of do that? So I think Prem, with first question, as you are aware that the deferred consideration were accounted on the discounted basis. And as we are moving closer to the receipt date, automatically the amount will increase. And with respect to Yedeshi Aurangabad, with respect to Yedeshi Aurangabad, you are absolutely correct that we have received arbitration award of 1,700 crores plus and plus the extension in the concession period. But that amount is yet to be received from the NHAI. And once we will receive that, then automatically that amount, the deferred consideration will get reduced. Now, coming to the funding of the private InvIT, if there is a delay in terms of rights issue, because rights issue requires timely filing of the prospectus with the SEBI and other stuff, in the meantime, sometimes we infuse the money directly to those SPV, and once the rights issue is done, they pay us back. So that may be the reason. But if you have, I think if you have any further question, we can discuss this offline, and we can provide further details. Sure, sure. I mean, I'll get in touch with you offline for this. Thank you and all the very best for future, and wish you a very happy Diwali. Thank you. You too. Thank you. Ladies and gentlemen, you may press star and one to ask a question. I think there are no more questions. We can do the closing remark and conclude the call. Okay. I would now like to hand over the conference to the management for closing remarks. Yeah. We'd like to thank all of you for being on the call today. And we would like to wish you all a very happy Diwali and a prosperous new year ahead. And we look forward to have you again with us on the next update of the company very soon. Thank you. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using ResearchWise conferencing services. You may now please disconnect your lines now. Thank you and have a great evening.