Ladies and gentlemen, good day, and welcome to the Power Mech Projects Limited Q4 FY 2023 earnings conference call hosted by Nirmal Bang Institutional Equities. As a reminder, all participants' lines will be in a 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 and zero on your touchtone phone. Please note this conference call is being recorded. I now hand the conference over to Mr. Prasheel Gandhi from Nirmal Bang Institutional Equities. Thank you, and over to you, sir. Thanks, Vikram, and good afternoon, all participants. Nirmal Bang Institutional Equities welcome you all to Q4 FY 2023 earnings conference call for Power Mech Projects. From the management team, we have S. K. Ramaiah, Director and Director Business Development, and Mr. Jami Satish, CFO. I now hand over the management for the opening remarks. Of course, we can take questions from the participants. Thank you, and over to you, sir. Yeah. Thanks, Prasheel. Is it audible? Yes, you are, sir. Please go ahead. Yeah. Yeah. Thank you, dear friends, good afternoon. This is Satish. Also with me, Mr. S. K. Ramaiah, Director of Business Development. Once again, welcome, welcome you all to the earnings call, quarter four and twelve months FY 2022-23. We are happy to share the latest development of Power Mech during the recent period. Overall, the performance of Power Mech is well within set plan and is in line with our internal targets. Performance for the company continues to be robust and healthy. Let me first start with quarterly and yearly performance with numbers. The reported total income for quarter four, FY 2023, is around INR 783 crore. This, this is once again all-time performance in the history of 24 years journey of Power Mech in a single quarter. The reported EBITDA is close to INR 140 crore, and the reported PAT for quarter four is around INR 75 crore. During quarter four of last financial year, the total income was INR 905 crore, and EBITDA was INR 997 crore, and PAT was around INR 48 crore. The total income has gone by almost like 32%, whereas EBITDA has gone by almost like 43%, and PAT has saw the growth of almost like 58%, which is quite robust. The revenue for quarter four, FY 2023, is as follows: erection business has contributed INR 148 crore, whereas last year it was INR 521 crore. Civil business, including railway, water, and distribution, specialized construction, power-related civil work, it has contributed close to INR 760 crore, whereas last year it was almost like INR 516 crore. Operation and maintenance has contributed INR 247 crore, and last year it was around INR 217 crore. Electrical business, it has contributed close to INR 18 crore, and last year it was INR 17 crore. The domestic business has contributed close to INR 1,070 crore, which is close to 91%, and the rest has come from the international business, which is close to 9%. Whereas during quarter four of last year, the domestic business has contributed close to 85%, and international business has contributed almost like 16%. Similarly, the power sector, including operation and maintenance, power-related work, during quarter four, it has contributed 43% and non-power is almost like 57%. Similarly, during last quarter, last year, it was almost like 56% and 44%. Similarly, the total reported income for twelve months, the entire year, FY 2023, is close to INR 3,618 crore, whereas last year it was almost like INR 2,728 crore. There's a growth of almost like 33%, and the EBITDA for this year is close to INR 421 crore, whereas last year it was INR 303 crore. There's a growth of almost like 39% with increase in the margin, and PAT for this year is close to INR 209 crore, whereas it was almost like INR 139 crore during last year. There's a healthy growth of almost like, you know, 50% plus. In terms of revenue mix, erection business has contributed almost, almost INR 606 crore, whereas last year it was INR 521 crore. There's a growth of 16% in erection business on a twelve-month basis. Civil business has contributed almost like INR 1,995 crore, whereas last year it was INR 290 crore. There's a growth of 55%. O&M business has contributed close to INR 930 crore, whereas last year it was INR 804 crore. There is a growth of almost 16%. Electrical business has contributed INR 69 crore, whereas last year it was INR 93 crore. There is a fall of almost like 24 crore, which is 25%. On a twelve-month basis, domestic business has contributed almost like 88% and international business has contributed 12%, whereas last year, domestic business contributed close to 84%, and international, again, 16%. The revenue mix between power and non-power on a twelve-month basis, power has contributed close to 54% and non-power, 46%, whereas last year the mix was power, 62%, and rest has come from non-power, which is almost like 38%. The growth in business is significant. The above growth is on account of strong order book base, increased in-house execution bandwidth. Improvement is also seen in overall margin profile, and the same is further expected to improve gradually. Depreciation cost as a percentage to revenue remained lower side due to planned CapEx spending. Finance cost, again, as a percentage to the revenue, remained lower side and continued to be controlled on account of improved working capital cycle and cash flow management. With better deployment of capital and improvement in margins, we have also seen improvement in return on capital employed and return on equity, which is quite healthy, and we see this improving going forward, too. The overall execution bandwidth is still increasing quarter-on-quarter on account of various initiatives and strong increase in in-house resources. Company is well set to execute projects now in the range of INR 900 crore-INR 1,500 crore per quarter. Other recent developments and updates include, for the project executed and completed at Andhra Pradesh, Andhra Pradesh Medical Tech Park, we have received during last week the entire amount of INR 42 crore plus from AP government. This was held with AP government for a long time, in spite of we've been completing the project on a record time. The realization is a major development for Power Mech and will help in a big way to improve the cash flow and also the overall liquidity for our growth. Also, the retention money of around INR 20 crore, which is due now, is expected to be realized next 30-40 days. All final leg work already been done and, this is -- we are quite confident of getting the INR 20 crore next 30-40 days. With that, the amount of AMT jets will be completely recovered. Generated positive operating cash flow during the year is around INR 180 crore plus, and the free cash flow is around INR 120 crore plus, which is quite healthy. We are also working on the same to improve further. The average monthly collection of the company is still improving month-on-month basis with the growth in the business. Collection ranging per month, now it's in the range of INR 320 crores-INR 400 crores, which is significant. More importantly, the net, the net current date, excluding cash and cash equivalent, is substantially on account of improved working capital cycle, change in business mix, and change in customer concentration. The net current date has come down to 130 days as on 31 March 2023, and the same used to be 150 days as on 31 March 2022, and 205 days as on 31 March 2021. There is significant improvement in the overall working capital cycle. Now, the gross debt and the net debt remain controlled despite growth in the business and order book. FY 2023, if we see, the gross debt is around INR 470 crore, and the net debt is two hundred and forty-one crores, whereas it was INR 527 crore and INR 320 crore during FY 2022. The debt, the debt to equity as on March 31, 2023 is around 0.37, as against 0.51 as on March 31, 2022. Similarly, the net debt to equity has come down from 0.35 to 0.19 as on March 31, 2023, and there is reduction in debt equity, which is quite healthy. The company has continued taking various steps to strengthen its resources, including strengthening ERP, IT, leadership training programs, focus on safety and quality, strengthening supply management system because of increased business comp, material component in our business model, and also the risk management. There has been continuous induction of the senior management from different experts from different industry to strengthen our execution capability and also to strengthen the senior management level so that we can sustain our growth and cope up with the changes. Recently, we have inducted Mr. Surendra Babu Akkala, and he has joined as Head of India Business. He has vast experience of more than 30 years in the field of development and augmentation of several coal and iron ore, ore mine blocks in India. He was earlier associated with Western Coalfields Limited, Central Coalfields Limited, Southern Coalfields Limited, in various positions, and also with Adani Enterprises Limited as a Senior Vice President in Natural Resources and Mining Business. Apart from that, Mr. Ratnadeep was joined as Senior Vice President as Business Development and Operations Head. Especially, he's in charge of the business development and operations in Saudi Arabia and Bahrain. Following a meticulous academic career in electrical engineering and global business management, as well as a tremendous, has a vast experience of 18 years in international business development, strategy, business turnaround, and global operations. He gained solid knowledge in process optimization and strategic partnership building, growth, etc. Earlier, he was associated with reputed organizations like ABB, Siemens, [Uncertain], etc. So his experience will help in a bigger way in developing the business operation in, especially in the Saudi Arabia market. Along with him, Mr. Srinivas, who is the CEO of International Market, will be concentrating on the Nigerian market, and Ratnadeep will continue to serve the Saudi market. It will help in a big way to improve the international operations business. Now, coming to the order book. The order backlog as on 31 March 2023 stands at INR 23,000+ crore. For the entire year of FY 2023 and 2024, the current financial year, the company has set a target for achieving new orders of INR 10,000 crore. This is including the spillover orders of around INR 200 crore, plus the projects which are on L1 status, close to INR 1,400 crore, and the projects already added during quarter one of the current financial year, including around INR 720 crore. And we're quite, quite confident that this INR 10,000 crore numbers can be achieved. We have identified different projects, domestic, international, in different segments, close to INR 40,000 crore plus, and the conversion of INR 10,000 crore is quite achievable. We are also expecting good amount of order booking and execution cycle at international market too. Now, the team has been strengthened. Because of COVID, there was a lack of two years, but now the momentum is picking up. We had a major breakthrough at Nigeria, Dangote, in O&M, and there are multiple follow-up discussions are happening, so we are expecting close to INR 500 crore of order booking in international market too this year. The existence of strong enough risk management policy, team to review each project progress, identify the associated risks, helping us to proactively mitigate at every stage for all the associated risks in various ongoing as well as the new projects. Now, various initiatives taken two years back, helping us now for a sustainable growth across all the verticals in a large way. Now, the targeted business segments broadly include international operation, both the O&M and the traditional mechanical business. We are targeting close to INR 400-500 crores. Operation and maintenance, domestic, including the projects which are getting renewed during this year, we're expecting close to INR 1,000 crores plus. Power business, the traditional, because a lot of projects are coming up, especially the projects which are getting revived. Civil, power, and the FGD, put together, we are targeting close to INR 2,200 crores. Of this, already the projects which are L1 includes close to INR 200 crore. On top of that, railway, metro, we are working aggressively, the depot, etc. We're expecting close to INR 200 crore. Material handling, we're targeting close to INR 500 crore. Water distribution works, we are targeting close to INR 2,600 crore, mostly Madhya Pradesh, Maharashtra. And specialized construction, around INR 450 crore, and electro-electrical business, INR 450-500 crore. The company has built strong expertise in execution and business development. Now for the government, the opportunities are many to choose. Stand-alone prequalification to bid for any new projects for government increased significantly in projects like railway, road, water, Iron Ore.... material handling, EPCM specialized construction. Execution for FY 2024, FY 2025, and FY 2026, next three years is going to be robust and healthy on account of improved order book, large targeted projects in pipeline, and increased execution run rate per month. Also, the margin profile, we have seen improving and expected to improve further gradually. We are working to build business model to have recurring long-term service model income to the tune of INR 3,000 crore+. That is including operation and maintenance and the MDO operation from FY, FY 2026 onwards. In addition to the business growth, this will help in improving margins. This INR 3,000 crore pie is expected to improve at least 18% CAGR from FY 2026 onwards, so this will help in a big way. Moreover, to a large extent, it will also help improving overall over working capital and cash flow. Now, I request Mr. K. Ramaiah to update on various other developments before we get into Q&A session. Thank you all. Yeah. Thanks, Satish, and good afternoon to all our valued participants. Satish has given the overall numbers of the revenue, the order book, the backlog and the order book position, and some of the numbers on the financial side. And what is important to understand is that basically I would like to emphasize that there is a—First of all, the market has opened fully for us. That is the first time we are seeing so much of penetration is there, and thanks to this national infrastructure pipeline, which is in under implementation for the last six years. And this is visible in terms of the value of the orders, what we have booked in the preceding year. Almost it is 100% more than the previous year, what we have booked about INR 4,431 crore. This, the preceding year, it is INR 8,479 crore, almost 100%. This has been significantly possible for some of the major orders what we have taken in SGD, infrastructure job, railway job, significantly railway and metro jobs, then some of the maintenance jobs, and also on the traditional jobs on the power plant works, which has happened in Godda, Kudgi, et cetera. BMRCL metro maintenance job, what we are doing is a very interesting job, about INR 427 crore for that, opens up the path for the entire metro availability of opportunities, about 27, about another 14, 15 cities are coming up. This is the type of opportunity which has happened. If you look at the overall figures, excluding the quarter percent for the MDO development, the backlog of the order, which was INR 8,855 crore as on last year, March 2022, it has gone up to INR 13,733 crore, almost 55%. And the significant contribution has come up in the FGD business and the mechanical side, almost four times the backlog has gone up from INR 1,650 crore to INR 67 crore. Field work, there is a modest increase of INR 5,842 crore to INR 6,136 crore. O&M, yes, last year there had been some of the opportunities got postponed, and there is a dip in the overall backlog, and the electrical is more or less the same, but overall increase in the order backlog is 55%. On the domestic to IO, domestic continues to play a leading role because of the opportunities which are available in energy sector, infrastructure sector, railway and various other non-power sector. That domestic sector almost contributes to a backlog of 97%. International, as Satish has said, on the post-COVID, there had been a delay in the investment coming up in the Middle East Gulf region, and now perhaps it will open up. Then the power sector business is significantly geared up at 66%, INR 9,131 crores is the backlog. Non-power sector is 4,602 crore. This also is a good product which is there. Therefore, overall, if you look at some of the major jobs, what we are executing as on today, we are executing Udangudi job, which has done one third of the job we have completed. That is in Tamil Nadu. Buxar, also 2 into 6 system about boilers for L&T in Bihar, about 32%. Bhusawal is under advanced stage of completion, 85% for INR 285 crore. The bigger jobs, the INR 830 crore, we have done 70%. Maitree, Bangladesh, INR 855 crore, we have done 80%. A very interesting thing, what is happening in the [Uncertain] is drinking water, INR 2,927 crore. The original order value, it will significantly go up by 30-40%. That we have done around 15% in the last year, and this year it will further improve. Some of the road projects in Telangana and also in Karnataka and Mizoram, we have done about 40-45% of the work. The Adani work, we have already taken up. The BMRCL is an interesting job, the metro maintenance job, that we have already started the work immediately. In terms of the manpower deployment, today, we have a lot of optimization has gone, redeployment and skill, utilization of the skills available in different segments, infrastructure, installation, O&M, exports, all under contract management, business development. I think we have done a significant exercise on improving the, in optimizing the manpower. It has almost come down by 10% in spite of the order backlog on the turnover is going down. That is where it is also to some extent contributing for the better margins. At the end of last year, it was 32,000, now it has come down to 28,500. Now, I would like to bring out certain things on the major segments of our work. Railway jobs, today, we are doing eight major jobs, about INR 1,300-1,400 crore, and most of the jobs are fairing pretty well, railway and metro jobs. Drinking water is happening in the UP for three areas, Bulandshahr, Etawah, and Pratapgarh, and Fatehpur. The order booking is expected, the original order, which was awarded around INR 2,720 crore, is expected to go up to INR 4,347 crore, based on the project approvals of the individual villages and blocks. Therefore, about 2,903 villages will come ultimately. And the good thing is that we have provided 100% drinking water for about 102 villages. Therefore, that, the company having diversified it and, working in different villages, and we are having a, distributed mechanism for managing the, various villages, with the, key managers posted in district wise and area wise, that is yielding results for us. And we have completed last year about nearly INR 5,000 crore of jobs. These projects are well structured in terms of payment terms and other things without any retention, and there is an advance. We are focusing a lot on this because there is so much focus on investment, the government side also, because of its need for the villages. Now coming to what are the opportunities will come up down the line? I think a broad figure what Satish share was INR 10,000 crore. It should be possible based on the track record and the market availability of the opportunities. There are a couple of things helps us to understand this. One is that there is a revival of some of the stalled projects, about 5,270 megawatts, Monnet Ispat, then Atharana Power, Meenakshi, Amarkantak 2 into 660, then Ind Power, et cetera. Already, we have entered our Monnet Ispat. We have taken jobs from the JSPL, who have taken this job. Atharana, we are aggressively following with Vedanta Group for the 2 into 600 megawatt, and about INR 400 crore of offer has been given, and we are well placed to get the entire job of that. That is the leftover job. Now, Power Mech has developed expertise in undertaking finishing jobs, what we have demonstrated in Gonda, and also Monnet Ispat, already we have mobilized there. This is the revival of the project, and there is also a bit of information on the new green and brownfield projects expected, particularly NTPC is planning 14 sets, and overall, about 28 sets are expected, 650-810 megawatt. We hope these things will take shape to balance the power, the energy mix between power and renewable. If that happens, you know, another 21,000 megawatts of new greenfield and brownfield plants should come up. Already Talabira NLCIL project is there, 3 into 8 megawatt that has to take shape. There are many projects from NTPC also in the pipeline. Therefore, this is an opportunity we are pursuing based on our expertise. The recent diversification we have done in the mining side and the material handling and coal handling, we are executing quite well at Kurmitar. That will, and then, that should give us a lot of expertise in handling a EPC job. There are about 70 coal handling projects by Coal India itself, and Coal India is investing about INR 50,000 crore. Apart from that, there is a huge emphasis on the capacity expansion of the steel plants, from present 140 plus million tons to go up to, say, 250 million tons. The immediate expansion, what is expected is on all these, develop, all the steel plants. For example, JSW, ArcelorMittal, Monnet Ispat, and JSPL. Their planned invest probably about INR 300,000 crore to ramp up the capacity to 60 million tons. Of course, the overall government target to enhance the steel capacity to 250 million tons by end of this decade, that is already there with an investment of $156 billion. Now, the expertise, what we are gaining implementing these four projects in JSW Raigarh, JSW Dolvi, and then JSW Ballari, there are significant opportunities in this for the project work. They're mainly structural, mechanical, equipment, piping, and we will certainly take a call on this, and this is an, a good opportunity to pursue. In the case of drinking water, perhaps there is significant progress, and out of 19.5 crore households, the balance that we're thinking was to be provided for 7.24 crore households, and government has allotted them funds of INR 70,000 crore for this. Opportunities we are tracking in Maharashtra, in Madhya Pradesh, then Orissa, Karnataka, and we are looking for a couple of projects there, thinking what based on the experience, what we have gained in that. Then, the electrical side, the ongoing investments which are continuing to be there in the DISCOMs, only thing the competition is pretty steep there. Particularly DISCOM investment and then transmission investment, INR 200,000 crore and INR 285,000 crore are coming up. And then most important thing is the railway. I think we have seen the current budget, roads and railways have been given bulk of the budget out of INR 10 lakh crore, and we are doing pretty well in both the sectors, rail, railways and roads also. We have now a significant organization set up to implement all these things. As far as the O&M is concerned, some of the projects which were not taken up, which will take up in this year, both in the domestic market and international market. In domestic market, we are pursuing opportunities of more than INR 2,000 crore, and if it possible, end of year, we should be able to make around INR 2,000 crore. About INR 200 crore of renewables are there. We are already L1 in Raichur, about INR 170 crore. Also, in Vedanta, we have taken some 44 jobs. That should give us a reasonable visibility for the O&M. The O&M backlog should be improving. The other important thing is metro projects, for example, what we have taken up, after metro rail projects, eight numbers which are under execution. The total government plan for the expansion of metro network from 700 plus kilometers, 750 kilometers to 710 kilometers to 27 stations. That should bring a lot of opportunities in terms of maintenance shops, which are, these are our interest now because we have already taken up, and we will be looking at whether the mail work also we can take up with some IFs, that we are looking forward. These are all very good investments coming up with a good implementation plan and all. With our expertise, what we gained in civil work in the last, decade years, perhaps it is doable also. Then, balance FGD, around 60,000 megawatts are to be outed. That we'll be pursuing it. Then drinking water, I told you, railway and metro. Then roads are also there. Many roads are going on aggressive basis, and, about 4-5 projects we are looking at it in Telangana, Karnataka, and, we'll see how to take it forward. Therefore, on an overall basis, we have identified about INR 40,000 crore of opportunities in the domestic market and also international market. Nigeria, we have got a big set up there with the O&M, and Nigeria is a growing country, 12,000 megawatts will start there. Then Ghana is there. Then, Africa, things should open up in a big way. The Middle East, what is their plan is that plus, plus, 400 gigawatts of power. Because of the COVID, there was a lull in the investment, both on the power sector as well as in the oil and gas sector. That should take shape now because their plan is to... Original plan in the MENA region is to ramp up the capacity to 650 gigawatts. And, we have got a strong presence in the-- we've got an office in Dubai, and we are working in dozens of plants and completed about 6,100 gigawatts of plants we have commissioned. And, that experience and background, probably, should help us execute the new opportunities. Well, that is what I would like to say. Thanks for your time. Yeah. Can we move to Q&A? Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on your 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. To ask a question, please press star one now. Take our first question from the line of Dikshit Doshi from White Stone Financial Advisors. Please go ahead. Yeah, thanks for the opportunity. My first question is, obviously, you mentioned, last year, our order inflow was INR 8,500 crore approx, of which, only one order was almost INR 6,000 crore. So other than that, the order inflow was slightly lower. So, what gives you confidence, in terms of competitive intensity also is quite high. So what gives you confidence of almost INR 10,000 crore order win, for the next year? I think that comes obviously by the, improved investment and the infrastructure, and also the private investment which is catching up now. Because earlier, a lot of investments were the, government sector. Now the private investment also is catching up. And, if you visibly look... If you really look at the, the investments which are coming in various sectors, whether it is, infrastructure sector, road, railways. The road and railways visibility is very clear. Then energy sector also, some of the projects are getting revived in the thermal plants, and new coal-based plants are also expected, about 21,000 megawatts. Then on the industrial side, and then oil and gas sector, a lot of, investments are, being planned. The other thing, what I said about the drinking water, still, you know, a lot of opportunities are there, and then FGD balance opportunities are there. Last year also, we had a significant team, but some of the things didn't take shapes. Fully, we would have got more also. But now, in this current year, the opportunities, what is available, and, with the experience gained, you know, and, qualification also gained, the INR 40,000 crores-INR 50,000 crores of opportunities is a good base for us to target this INR 10,000 crores. See, more importantly, we set a target of close to INR 10,000 crore last year, okay? So that, taking various projects, including the FGD part, okay, so we did close to INR 8,500 crore. Around INR 1,200 crore got spillover to this year. So we got INR 720 crore, and L1 status, INR 1,400 crore. Maybe next few days, we'll add that. So excluding the INR 1,500 crore, the original is INR 8,500 crore. Of that, the orders, like O&M, the projects which are going to be renewed, okay, that itself close to a larger number, close to INR 550-600 crore. And international, we have kept, because we didn't add much. This time, we are targeting almost close to INR 500 crore. Apart from that, the large pie of FGD has to be awarded. We are already in advanced stage of, for discussions to finalize. On that, plus the traditional O&M, O&M, sorry, power, civil, and the mechanical put together is close to INR 2,500 crore, that's adding up. Whatever, we didn't add much last year because our kitty was full. Now, multiple opportunities are coming up, Maharashtra and MP. That itself, we are targeting INR 2,500 crore plus, because 2021, almost fourteen months back, we added close to INR 3,000 crore of order book, okay? We wanted to first focus on the execution. 2022, we didn't add much in the backlog. Now, the kitty was full. Now we intended to add, the execution cycle is going well. On an average, monthly, we're doing close to INR 100-150 crore run rate. So now, there is an opportunity to add further. So we are trying to add INR 2,500 crore there itself. And metal handling, it's quite a large pie, okay? Slightly, we have kept a target of INR 500-700 crore. Taking all these things, so the numbers looks to be quite achievable. Okay. The second question on the Jal Jeevan Mission side. We have an order from UP. I think recently, in the last four or five months, many orders were given in Madhya Pradesh as well. Are we bidding in MP and any other states? Yeah, we are aggressively focusing 2-3 projects in Madhya Pradesh, then, UP also. UP also, we are pursuing it because we already established a base. And perhaps, Karnataka also. Karnataka, about 50%, Jal Jeevan Mission projects are to be implemented there. There is a lot of backlog there. And a new government has come, perhaps that will get the initiative. And, Karnataka, we have got a good base now, and, because we are doing Bangalore, and then we are doing work in Mysuru and other places. Therefore, that should help us to, as Ganesh said, this is a focus area for us based on the experience what has been gained, and it is a good project to be implemented with, strong investment, because government is keen to invest the money in that. It has got benefits to the rural, rural, households, you know. That is, that is why we are bullish on that. Just last question on this Jal Jeevan Mission. How is the competitive intensity over there? And, margins in these projects will be similar to what, our company level margins are? I think we are comfortable with 15%-18% EBITDA margins, and the PAT will be around... It's a reasonable PAT will be there. The size is quite large, actually. It's, it gives the opportunity to... Okay, of course, very safe, because the quantum is too large, and the rate at which it's working is quite good, because if you see the PVC or the price escalation, not much, okay, increase in prices. And it's a short-term contract, hardly 24 months, so we can easily work out 14%-16% plus, okay? But conservatively, it should at least beat our existing margins. That's where we're working on. Okay. Okay, fine. That's it from my end. Yeah. Thank you. We'll take the next question from the line of Deepak Poddar. Before we take the next question, participants, please press star one to ask your question. Mr. Poddar, please go and ask your question. Hello. Please go ahead, sir. Yeah, thank you very much, sir, for the opportunity. Sir, I just missed the point you mentioned about the execution cycle. So what's the capability we have right now, and what's the rate that we're doing right now? Yes. See, now the execution, its bandwidth is well set in terms of the resources like manpower, the equipment base, okay, the infrastructure, the manpower base in terms of skill and everything put together. Now, it's almost like on average, INR 900-1,500 crores per quarter we can execute. Because if you see, like, we have demonstrated almost like INR 1,200 crores, almost 1,200 and close to 1,200 crores, in a single quarter. Now, ramping up to INR 1,250-1,500 crores is well set now, okay? Gradually, we have to see over a period of up to 24 months, okay, when the once India stabilizes, okay, rate increase and all, maybe after 2020, 2026, 2027, we'll consolidate, which are various to grow and rate to restrict. ... So INR 1,200 crore-INR 1,500 crore per quarter is our execution capability, right? Capability is well set now. What's the rate we are doing right now? You mentioned something about that. See, it's ranging between INR 900 crore-INR 1,200 crore, because quarter four itself, we have demonstrated quite close to INR 1,200 crore. Now, the resources in terms of the asset base and all, okay, the range is INR 900 crore-INR 1,500 crore per quarter, we can execute. Okay, understood. Understood. And in terms of revenue, I think earlier we were of the view of INR 5,500 crore kind of a revenue visibility this year, right? So that includes the FGD that the order that got transferred from the execution got transferred from Q4 to Q1, or it excludes that? No, no. See, quarter FY 2020, FY 2023, we are on track. Okay, we did what we planned. Okay? FY 2024, the order book is quite healthy, okay? We should be able to convert 37% to 40%+, okay. We see this quarterly progress improving each quarter the way what we did quarter 2023. The order book is quite healthy, so there is high possibility and scope to improve quarter on quarter. I mean, quarter-on-quarter, we should see improvement. That's what we are saying, right? Yes. Yeah, because, I mean, 37% of 37%-40% of order book we are looking to execute. So that excludes the MDO order, right? Excluding the MDO order. MDO orders, we are not including, yes, you are right, because FY 2024, maybe a small amount to INR 40 crores plus, we should convert, and it should reflect in a bigger way from FY 2025, 2026 onwards. FY 25 is INR 40 crore-INR 50 crore, right? That, that- No, 24, if all goes well, FY 2024, quarter four, we're expecting close to INR 40 crore plus. Okay, understood. Understood. Fair enough. I understood. And at 37%-40% is in the range of maybe, what, 5 to 5,000, 5,500. I mean, that may be the range one may be working at, right? Mm-hmm. For FY 2024. Hello? Hello. Yeah, yeah. So I missed your point. No, yeah, you're right. Yeah. This is the backlog, order book, excluding the MDO. So that amount about INR 5,000 crore-INR 5,500 crore, right? I mean, in terms of 37-40. The number, there's a range, because I can't be very specific, but there's a range what we should be able to achieve. Understood. Fair enough. And in two years, I think we were targeting about 13% EBITDA margin, right? So, are we kind of targeting the same thing as we speak now? See, in terms of margin profile, you would have seen, like, last four quarters, so there has been improving, improvement in FY 2023. And FY 2024, of course, there will be some improvement on account of various reasons, like, the, the project, the project order mix, where we had the JV qualification brought and the royalty we used to pay, that's why it's coming down, number one. Number two is like, the new mix, okay, the new orders, we are not targeting anything 12.5%, 13%, so this will also help in terms of improving the margins. I mean, saying that this, once this MDO stabilized, okay, which we are expecting FY 2025, 2026, okay, then you'll see that, that margin contribution will be in a larger, okay, larger extent from MDO. So that will help to push the blended margins. Correct. Gradually we'll see the number improving. I understood. So, so once the MDO operation stabilizes, what's the steady state margin we can see in MDO, MDO operation? See, MDO, we are expecting anything in the range of 18%+. So yeah, so that definitely should help us to improve the blended margins. Understood. Fair enough. Yeah, yeah, I, I think, yeah, yeah, that's quite helpful, sir. That's it from my side. All the very best. Thank you so much. Thank you. Yeah, thank you. Thank you. We take the next question from the line of Pratiksha Daftari from Aequitas Investments. Please go ahead. Thanks for the opportunity. Just wanted to know what would be the top orders that will be executed during FY 2024? Yeah. See, the top orders will include, of course, the FGD, the Water UP, then Yadadri in Telangana, Bhusawal, Maharashtra, then BMRCL, this is the Bangalore Metro, then Kazipet, the second railway, Khurja, Udumudi. These are the top orders which will contribute substantial amount. Of course, Maitri, Bangladesh. Yeah. Okay. So how do we look at margin profile for FY 2024? Do we expect to see any improvement? There is a small marginal improvement, yes. Okay, we are seeing the Pi increasing, okay, quarter-on-quarter, okay, on account of various reasons. Now, we can expect some improvement in FY 2024 too. Okay. How about the working capital requirements? Since we are talking about execution of about INR 5,000 crore, how can we look at the working capital and short-term borrowings for FY 2024? If you see, FY 2023, in spite of large order book and improvement in execution +32% growth, okay, we have kept the debt control, okay? The reason being the net current debt, okay, mainly the retention money which is able, okay, other line items, so they kept controlled, payables almost like 75 days+, and keeping the cash flow inflow to outflow on a project level, okay. So we could able to bring down the net current debt to 130 days, which is a great achievement. So we kept a target of 135, honestly. So we brought this down to 130, which is a great achievement. It used to be 200 days+ in FY 2021 and 54 days, FY 2022. So that helped us to improve the operating cash flow and the free cash flow. We could able to control the finance cost, and we could able to retain the debt level more or less intact, okay? Of course, it has come down to 32 party growth. The thought process is now the amount what we have got from AMTZ Andhra Project, INR 42 crore, plus we are going to get another INR 20 crore. It will throw INR 60 crore of additional surplus cash flow to the system. That should help us to support to the working capital going forward for 12 months, okay. I don't see much... I don't see any increase in the debt. Maybe the finance cost may remain more or less flat, or maybe a small increase of INR 5-6 crore. As an absolute number, it may be in the range of INR 90-95 crore, but as a percentage, you'll see a drastic percentage coming down. T he first finance cost as a percentage revenue is coming down significantly. Okay. And one last question: this year, I think, contribution of O&M to the overall revenue was upwards of 25%. Do we think we can sustain this number going ahead as well? Madam, like, see, the O&M now, it's, the execution range is close to INR 930-940 crore. This may go up to INR 1,100 crore, okay? So there will be improvement in terms of absolute number, okay, but as a percentage of revenue, it may slightly come down because, the mechanical pile will contribute this year significantly, and the civil pile will also contribute in a significant way because water, railway is going up. If you see like the, water business used to be 4%-5%, this year is 8%-9%. But you'll see FY 2024, it will contribute a significant base, almost like 25%+, and railway will contribute close to 8%+. So with the mix, okay, undergoing changes, I see O&M as a percentage, there might be a slight fall, but in terms of absolute number, it will go up, madam. Okay. Just one last question. I think what I have understood was that our total water orders from UP were about INR 4,000 crore. Is that amount correct? Yeah, it was originally around INR 2,720 crore. What happened, you know, they give the project report, we have finalized it based on the actual scope of the work. That is the indicative tenders on which it has been finalized. Then a further order will be agreed to be signed based on the detailed scope of the work, and that has gone up to more than INR 4,000 crore now, estimated. Okay. Pardon? How much of this is already executed? No, I told you, about INR 571 crore we executed. Out of INR 4,000 crore, how much have we executed? INR 571 crore. Close to INR 600 crore, Madam. Okay, okay. Close to INR 600 crore. INR 572 crore. Okay, got it. Yeah, you are right. All right. Thank you. Thank you. Participants, to ask a question, please press star one. Anyone who wishes to ask a question, press star followed by one. We take next question from the line of Prasheel Gandhi from Nirmal Bang. Please go ahead. Sir, just a question from my end. So for FY 2025, what type of ordering so are we targeting, given that we are targeting INR 100 billion for FY 2024? FY 25, we kept a target of close to INR 11,000 crore. Okay. The incremental amount, what we are targeting, the pie of O&M, sorry, international market slightly will go up because the team has got strength, and there's a huge scope to increase the quantum. We could see that some significant amount coming from the international market in FY 2025, okay? That is number one. The FGD ordering will continue to be in FY 2025, too. There will be following orders, okay? The complete award will take one and a half years, so there will be some opportunity coming in FY 2024-2025, too. On top of that, the material handling and the railway metro, we see huge amount of opportunity. We have kept an incremental target of another INR 1,000 crore plus. Put together, this is INR 11,000 crore, that's the target. What is your execution date for FY 25? Sir, the range 30, the 37%-40%+, okay? That is the, that is the, thumb rule we can take to the opening order book, okay? Of course, this percentage may not work 2025, 2026, because, the MBO will kickstart there, okay? So this is excluding the MDO pie, plus the MBO, maybe another INR 180 crore-INR 200 crore, and it will be ramp up, okay, ramped up slowly. In over a period of 3-4 years, that amount of MBO will go up to INR 600 crore-INR 700 crore per annum. Okay. Okay. Thank you, sir. That was very helpful. Thank you, sir. Ladies and gentlemen, we have reached the end of the question and answer session. I'd now like to hand the conference over to the management for closing comments. Over to you, sir. Good, sir. Like, we have some more developments to come. I could not share, the reason being, like, there are some restrictions from the customer side. So maybe next month, we'll come with some more developments and updates, okay? So in terms of the order book and the target, what we have kept is on track. The developments, we'll update you in next month. Probably before the end of our second Q1 call, let's catch up one second. Thank you all. Thank you very much, members of the management. Ladies and gentlemen, on behalf of Nirmal Bang Institutional Equities, that concludes this conference. Thank you for joining with us. You may now disconnect your lines.