Ladies and gentlemen, good day, and welcome to Power Mech Projects Limited Q1 FY 24 earnings conference call hosted by Nirmal Bang Equities Private Limited. As a reminder, all participants' 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 touch-tone phone. Please note that this conference is recorded. Now, I hand the conference over to Mr. Prasheel Gandhi from Nirmal Bang Equities. Thank you, and over to you, sir. Thanks, Lisa, and good afternoon, call participants. Nirmal Bang Equities welcomes you all to the Q1 FY 22 earnings conference call for Power Mech Projects. From the management team, we have S.K. Ramaiah, sir, director, and Mr. Business Development, and Mr. Girish, CFO. I'll hand over the call to management for opening remarks, post which you can take questions for all participants. Thank you, and over to you, sir. Yeah, thanks, Prasheel. Good afternoon, all. This is Satish. I have with me Mr. S.K. Ramaiah, who is director of business development. Once again, welcome you all to the earnings call, Q1, FY 24. We had one more great quarter, and we are seeing positive developments across vertical, including execution, business development, new talent induction, risk management, continuous leadership training, working capital, capital improvement, and cash flow. The overall performance of Power Mech is well within the set plan, both in short-term as well as long-term. Performance for the company continuously improves. Coming to the numbers, the reported total income for Q1, FY 24, is INR 371 crores, and the figure for this quarter is close to 105 crores, and PAT is close to 51 crores. Whereas during quarter one of last financial year, the reported total income was INR 749 crores, and the reported EBITDA was INR 86 crores, and PAT was INR 39 crores. quarter- to- quarter, there's a growth of almost 16%, and with the growth of the top line, EBITDA has gone up almost 22%, and whereas PAT has gone up to 39%, which is significant. The revenue mix for quarter one is as follows: erection business has contributed INR 139 crores. Civil, including railway, metro, water distribution, STP, it's around INR 493 crores. Operation and maintenance, both domestic and international, is INR 224 crores, and electrical business has contributed 89 crores. Whereas last year, Q1 FY 23, electrical business has contributed to close to INR 152 crores, civil, INR 376 crores. Operation and maintenance, it was around INR 196 crore, and electrical business, it was INR 22 crore. During quarter one of this year, domestic business has contributed almost like 90%, and rest has come from the international market, which is close to 10%. Power sector, power and non-power, the distribution is 51% and 49%. Quarter one of last year, the contribution from international used to be 14%, whereas this year it's 10%, and domestic was around 83%. Similarly, for this power and non-power last year, it was 60/40, and this year it is almost like 51/49. We have seen growth both in premium and civil business on a year-on-year basis. Erection business continues to be flat, expected to grow Q2. Electrical business has shown negative growth because of constant reduction in the working plan. We are not expecting much to concentrate on electrical business because of its large working capital intensity. Going forward, water distribution related work, railway, metro, power project related work, material handling, and contract mining will play a major role in our business model. Of course, operation and maintenance, both power and non-power, domestic as well as international, will continue to be the backbone of the company. Improvement is also seen in overall margin profile, and same is further expected to improve gradually. Coming to the depreciation cost, as a percentage, it is more or less flat... remain lower side due to planned CapEx spending, not much CapEx is happening. We have kept close to INR 40-50 crores that is the level. The finance cost as a percentage remains controlled and continues to be controlled on account of improved working capital and cash flow. With improvement in margins, we have also seen improvements in ROC and ROE. And one, on commencement of the revenue from MDO, significant improvements are expected both in ROC and ROE. Coming to the other developments, during last quarter, we got close to INR 42 crores, which was held for a long time with the Andhra Pradesh Medical Tech Park. INR 42 crores we realized, and close to INR 20 crores of retention money, which is the final amount. All set now, we are expecting this to be realized in next 30 days. And the average monthly collection is between INR 350 crores plus, and we are seeing gradual increase in the collection with the growth of the business, and this is expected to grow significantly. Coming to the net current days, excluding cash and cash equivalents, it continues to be in the range of 148-135 days, which used to be significant two years back. A lot of efforts got to bring down this number, and, our immediate target is to see this number to 150-110 days. And coming to the debt, the gross debt and net debt remains in a controlled level. As on quarter one, the gross debt is close to INR 490 crores, which is flat in spite of increase in the order book and business. This number, number remains controlled because of improvement in the working capital cash flow, and the net debt is close to INR 284 crores. Debt equity is also more or less remained at control. 31 March, we had close to 0.37, and where it was, thirty-first March, it was 0.5, so it has come down significantly. More or less, it's ranging 0.3 to 0.4. Coming to the order book update. We had opening order book of almost INR 23,000 crore plus, and we have set a target of close to INR 10,000 crore for this year. Including this, our order book is INR 400 crore of last year. We are more or less confident of achieving this number. This target remains the same. As of today, we have got eleven shackles of projects close to INR 2,000 crore, and this is already got INR 150 crore. The target of INR 10,000 crore is quite reasonable. We have identified projects of around INR 40,000 crore+. So from INR 10,000 crore for this year, target is quite confident excluding MBO part. By the target segments includes, international options- operations, because post-COVID, during COVID, we should not take much of the orders because of travel restrictions, but now the team is quite active. A lot of inquiries are coming. So we have kept close to INR 400 crore+ of international order book, and could be another INR 150-INR 180 crore of, operation and maintenance orders from international. Apart from that, we are targeting close to INR 1,500 crore of O&M orders, and, we are seeing a lot of momentum happening in the power, especially the old plants getting revived. We have kept a target of almost like INR 2,000 crore plus. On top of that, water distribution, it's almost like INR 2,000-2,500 crore. Material handling, a lot of inquiries are happening. There we have kept a target of INR 900-800 crore. And speciality construction could be in the range of INR 450-900 crore. The order book is widely spread, so the opportunities are plenty. Now each HU in-house gets a wide opportunity to bid for different type projects. Now, each HU has built their skills and credentials. Now it is enabling the Power Mech to bid for larger projects at competitive price. Without JV, so that is also helping in a big way to improve the margin profile. As you all know, like, recently, we have got a large EPC contract from SAIL. This is a major breakthrough for Power Mech. We have been working for 2, 3 years, to see that Power Mech will build INR 3,000-4,000 crore of stable income for the long term, which makes it sustainable. And, this will help in a big way to improve the margin profile, because normally we used to work at 13 to 14% margin 3, 4 years back because of so many reasons, losing the JV credentials and all, and, looking cost of the purchase and all. So we ended up working with 11, 11 +, + 12%. But now there is a high probability that, the margin profile will improve project. So this MDO, we have got from, Steel Authority of India Limited. The contract size is close to INR 30,938 crore, which has to be executed over a period of 28 years. That includes 2 years of development period. The broad scope includes development of all the infrastructure, including a washery coal handling plant, all related infrastructure, which is necessary to excavate the coal. So we have to excavate close to 2 million tons of coal. The total results expected to be almost like 91 million tons. And overburden, we have to remove almost like 555 million cubic meters. So this is a large contract, and this will change the kind of Power Mech, and this will help along with the existing MDO KBP project, plus the operation and maintenance, which we are generating close to 1,000+ of our clients. This will help us to push 3,000 crore plus from 2026 onwards in a big way. The consistent stable income, 3,500 crore, is now a shift for government from 2026 onwards. Plus, now we have built current system, railway, metro, water. Of course, we have our own fire power. Combined together, we can see a large quantum jump going forward. This NGO project, we went with a JV partner called PC Patel. The structure, 20% government will hold and 20% is a JV partner, and the structure we have gone because of issues, but 100% is executed by us. Next two years, we have to set up the washery and coal mining plant and related infrastructure. This needs close to INR 800 crore of investment. On peak, we are expecting a top line of almost like INR 200 crore+. And the margin from this, this project expected to be the largest contributors, as compared to our all existing businesses. So this will help in a large way for our blended margins. The investment of INR 800 crore, this will be a combination of lead, some of project specific debt and, internal accruals, plus the equity part. We are, we are working on multiple structures to optimize the cost and, on the capital structure. And one more good development is, KBP MDO. We have got the, forest clearance, and recently, EC committee has, approved the environmental clearance. So this is expected to receive by end of this month. So most likely, October on the project, the ground work can be started. For this year, FY 24, we may expect somewhere INR 100 crore, INR 100 crore+ of land. The new project of Tasra, which we have got from SAIL, this is the project where all the approvals are in place. It won't take what we're taking for the old mine. This is a ready to start project, approvals are in place. We are expecting the contract to be executed next 30 days. After that, we can commence the work at the ground, we mobilize the project, and we are expecting to put some revenue during this year. We combined two projects, maybe INR 100 crore+. Maybe next year, we can target close to INR 350 crore-INR 450 crore, and gradually it can go up to INR 2,000 crore+ escalation. That is the target. In terms of execution cycle, it's Q1, Q2, historically, it's about 35 to 40% of the total year. So this year is going to be 35% coming, the revenue coming from Q1 and Q2. 65% will come in the second half. That is how the industry works today. So we kept a target of 37 to 40% conversion to our opening order book, and we are positive and confident of achieving that number. And FYI, 2025 to 2026, we are seeing a good quantum jump because of the project in pipeline order book is very strong. From that, this NGO both are going to stabilize during this year itself. So this will help in a big way. So both the projects together, plus the existing order book and the project plus we are expecting target, probably 55%+ year we're expecting next two years. By 2026 is going to be a major quantum, both in terms of our top line and in terms of margin development. We are, we are expecting that we should come back at least close to our normal margins, what we used to report in four years back. Yeah. Now I request Mr. Ramesh to more development. Thank you. Thanks, Satish. Sorry about that. Various points you brought on the business, and thanks for the participants. As Satish has said, you know, the entire business outlook looks positive and bullish, and we have seen the order backlog of INR 10,333 crores by end of the year. And with additional 30 crores, we are maintaining the more of the same backlog of orders. Mechanical contribution, INR 6,845 crores, civil, INR 6,555 crores, O&M, nearly about INR 500 crores, electrical, INR 200 crores. The power to non-power is 65 to 35%. The power side backlog is INR 8,781 crores. The non-power side is INR 4,860 crore. The domestic segment is also highly bullish, and this is obviously the input what we are getting in terms of the national infrastructure pipeline investment, which is going on for the last three years, which is a total investment of INR 100,000 crore, and that has been reflected in the clear doubling of the orders from 2021 to 2022-2023, from INR 4,238 crore to INR 8,478 crore. For which we have established a baseline of INR 8,500 crore of order booking last year. What satisfies about the projections for the current year of INR 10,000 crore is reasonably possible. That is mostly driven by the opportunities what we can have, and lot of the investments are coming from the private sector also. The major aspects of the, the business is that around INR 2,000 crore of jobs are in the relevant position in terms of wind and water systems, FGD, and, station jobs, and also non-core jobs. Moreover, the opportunities, what is being tracked, individual projects in various segments comes to around INR 25,000 crore. With installation about INR 5,000 crore, non-core about INR 500 crore, railway nearly INR 3,000 crore, electrical INR 1,500 crore, O&M INR 2,500 crore, drinking water about INR 2,000 crore, and other water systems another INR 2,000 crore. We have FGD nearly INR 3,500 crore, and road projects about INR 4,500 crore. Therefore, there is a visibility of the investments both in the public sector, the government sector, and the private sector, in all areas of the investment is going, going up. The railways experience, drinking water experience, and even road construction experience is pretty good for the organization, because we are doing quite well in terms of conversion and executing the projects. The major projects on hand, Yadadri, what we are doing into 5 into 800 megawatt in Telangana, about INR 830 crore, 76% has been completed. Maitree 2 into 660 megawatt in Bangladesh, INR 8 into 8 crore, we have completed 77%. Tirubudi, 2 into 660 megawatt in Tamil Nadu, 78% out of INR 362 crore. The Kanakapura Road, INR 45 crore, the progress is very good, 64% we have completed. Then the other road projects we have done about 60%. Then, Bhusawal, now, Bhusawal project for the BHEL, we have done about 89% out of INR 260 crore. Drinking water progress is picking, lot of traction, and, almost 30% of the work has been completed. Then, the new job, what we have taken, BMRCL, is the maintenance of work in Bangalore, in about INR 427 crore. Work has started in full swing now, and revenue should come up more again, more in the current year. Then, Monnet Ispat, which is a revival project of, two into 525 megawatts, INR 160 crore, we've already taken up. And railway electrification job, almost 92% is completed. The opportunity wise, if you look at it, in the installation business, in the power sector itself, there is going to be revival of the investments that comes with a coal-fired plant, going to be a variety of factors. One is to bring the stability in the grid. Another is to balance the base load operations. There is a plan to... Already many of these projects have been approved. NTPC is bringing up projects in Lara, very quickly, Sipat, Singrauli, Mauda, Ramagundam, Patratu, 13 sets of 660-800 MW. Damodar Valley Power Corporation is bringing up a project in Raghunathpur. Haryana Power Generation Company at Yamuna Nagar, 800 MW. NLC Talabira is almost on the pipeline, about 3x800 MW. NLC Neyveli, expansion 2x660 MW. Then Rajasthan, which is limited, Chhabra, Kalisindh, they are bringing up two major projects, 2x660 MW and 2x800 MW. Then the Pushpa District Board also is bringing 2x800 MW. Apart from that, there is a revival of summer plants, about 12 sets of various capacities which were went on a liquidation process in Monnet Ispat, Athena, Meenakshi, Amarkantak, Igwarash, and four. This is about 12 sets of 5,470 MW. And in this already we have made an entry in Monnet Ispat, and Athena with Vedanta, we are discussing and already we have given the offers for about INR 500 crore, and we are well placed there. Apart from that, Coal India Limited is planning, they are trying to become energy intensive company also. From coal, not only coal production, they want to enter into energy generation, and that they are planning to invest about 2,400 MW in Odisha and Madhya Pradesh. Then, the wind farm opportunities, as Satish was telling, that is looking bullish now. We have identified about 9,450 MW, spread across various upcoming projects in Gujarat, 2x660 MW, Chhattisgarh 3x660 MW, NLC, an 800 MW. Vedanta Captive Power Plant in Visakhapatnam Limited, 182 MW. Raichur KPCL two x 800 MW, then the, Jindal Power Plant in Angul, 2x600 MW, and Cuddalore IL&FS project, 2x600 MW. The domestic opportunity itself is around INR 2,000 crore. Internationally, recently we have seen that the captive power plant we have done for the Dangote Oil Refinery in Nigeria. We have already taken a job of bit close, AMC contract, and there is opportunities in Middle East, particularly in the Gulf area, where we are well established. Last year, we booked orders of nearly INR 100 crore in various maintenance job, specialized manpower services jobs, et cetera. There is a scope to figure out opportunities of more than INR 500 crore. Therefore, in terms of the overall growth, perhaps around INR 10,000 crore is achievable. The continued investments in the government investments in drinking water, the bank 70% source after 12.5 crore villages, drinking water is made available. Still INR 300 crore of the households have to be provided. There are many other water-related projects in urban development and all, those things will come in. Railways offers an excellent opportunity, and the metro rails also excellent opportunity. The present installed base of 750 kilometers route kilometers will more than double up with an annual investment of INR 20,000 crore. With our entry in railway maintenance shops, particularly metro maintenance shops in Bangalore, every city there are about 27 cities are planned. But the present 18 cities are there, it will double up. In fact, it will go higher, two and three cities. Every city, wherever the metro rail comes, there will be one or two maintenance shops with INR 300 crore-INR 500 crore. More than that, railways is coming at various things to improve the logistics, and also, maintenance shops. More than that, the road sector, they are going to not only the road development will be in continue to grow, but they are going to put up a lot of logistics costs into the logistics to reduce the logistics costs. They are investing heavily into freight facilities, logistics costs, nearly about INR 50,000-INR 80,000 crore. Power sector, I told you about that. Non-power, particularly the investments will come up in the steel sector. The present installed base of 158 million tons will develop by another 5-7 years. All the major players, both in the public sector, Steel Authority of India Limited, JSW, JSPL, ArcelorMittal, all of them are going to increase their capacities and they line up the investments a lot. It is expected also in the refinery segment also, these investments should come up by increasing the refining capacity, and then the gas and oil sector also. Therefore, this output should sustain for the next couple of years. Then the basic feature of the revenue generation will shift from the mine development operations, as Satish has told, but coupled with the increased sustained business in the O&M, both in the domestic sector, international sector, and non-power sector also. That is how the stability will come in revenue growth. And then apart from the new opportunities which we'll get in all sectors of the business, which we have focused here done today. Thank you. Yeah, Prasheel, you can go move forward to Q&A. Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question, may please 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 with questions, return to your handset for asking a question. Ladies and gents, we will wait for a moment for the questions to come in. First question from the line of Prateek Jain from Lucky Investments. Please go ahead. Yeah, thank you for the opportunity, sir. Sir, what kind of execution do you see for FY 24 on the revenue side? See, FY 24, we have kept a target of 37 to 40% conversion to our opening order book. We are on as per that plan. First off, we are expecting close to 35 to 38% conversion. Thereafter, 60% the second half, that is the plan we have kept. Okay. What is the backlog number that you are referring to for that 37%? Opening order book is almost close to INR 13,600. Okay. That is the base of the, the conversion. And, we have kept a target of INR 10,000 crore for this year. So already L1 is 2,000 plus 720 crore we already taken. So some conversion will happen. Okay, that's going to be enough. But, as a sample, 37 to 40% is a conversion we're expecting for the year to the opening order book. And you received INR 2,000 crore orders, right, so far in that INR 10,000 crore target that you have, right? INR 720 crore, we already got LOI, and the work started. The rest INR 2,000 crore, L1 started. Probably next 30 or 35 days or max of 60 days, the contract SAIL process will complete. Okay. Then on the power erection side, what kind of projects are you seeing in the system? Yeah, as I told you now, the only revival of the thermal plants which were stuck up. ... and the liquidation that is coming in Adani, Monnet Ispat has started. Now it is expected that the power in 340-660 MW. Already we are in discussion with customer around INR 400 crore of order flows we have given, and we are well placed there. And Amarkantak is expected 2x660 MW. That's a major job. Then, apart from this, it is expected the present revival of the coal-based plants, you know, I told you 22,300 MW. That will slowly come up in the sense, you know, some projects should happen. Like, you know, NLC Talabira, 3x800 MW, NLC Neyveli, 2x660 MW. Then, NTPC is already implementing 2x660 MW in Lara. Then Lara is coming up, which is expected, should be awarded shortly. Maybe there are some things we are discussing with LNT, and there are other projects also. Therefore, these are the things we are looking at it, and in non-power also, there is going to be opportunities in the iron ore, then planting plants, and also yeah, treating water and then water systems, et cetera. Therefore, wherever the place of the project job market, both in non-power and power, things should happen. Okay. And sir, my last question is, this MDO revenue, did the FY 26 will start seeing the revenue booking on the two projects, which is, KDH and the Steel, or FY 27, the real, the operator-related revenue, so that will be in 2026 or 2027? We're expecting some revenue to come by Q4 of this year itself. That's mine development revenue, right? Yes, both MDOs, because the second which we got recently, we have, we have all the approvals in place. We need to have the contract signed. That will take 30-35 days, but after we need to mobilize the project. Sir, I know that. You said INR 100 crore in 2024 and INR 300 crore in FY 25, right? Uh. These will be site development revenues, right? Which your- No, no, no, no. It will happen similarly. Site developments will be like our CapEx, and the escalation of coal per ton, what the customer has to pay, that is which billing will start. Okay. Yeah, yeah. The actual revenue. You said that INR 2,000 crore in FY 26, right? Yes, the two together, we are targeting, close to INR 1,200 crore plus, okay? Plus our MGO is, the existing O&M. Together, that's O&M plus MGO one and MGO two. We are targeting that that should cross at least INR 2,500-3,000 crore plus. Escalation is already complete. What is this O&M? It's the existing operational maintenance, which we are doing close to INR 1,000 crore now. Okay. That is actually long-term contracts, which is sustainable. So that plus this MDO, which are almost like 25+, 28 years. The three put together, I'm targeting close to INR 3,000 crore+. Okay. So the MGO number is 3,000, right? Your O&M number is already there as a part of your INR 2,000 crore revenue, right? Yeah. The INR 2,000 crore, this 2 MGO, but 27, I think it should be close to INR 2,000 crore. In 2026? 26 could be around INR 1,250 crore-INR 1,300 crore. In terms of the output that the mines have to produce, they will be at peak in FY 27? Yeah. So 27, yes, it will be peak at FY 27. What margin should one assume on this INR 1,200 crore and INR 2,000 crore? See, this MDO, there is a lot of scope to improve the margins, and this is going to be the highest segment in our business. Normally, like, O&M, which normally work 6 to 10% plus at a better level. Mm-hmm. We're expecting this business to contribute more than the O&M business. You have a fixed price, which is being... You have quoted a fixed price, right? Yes, per ton, plus escalation, which works close to 4.5 to 5%. Okay. Okay. Yeah. Thank you very much, sir. I'll come back if I have more questions. Thank you. We'll move on to the next question. That is from the line of Neil Mazara, an individual investor. Please go ahead. Hello, sir. Congratulations for the good quarter. Actually, my question was around we now have two big MDO orders in our hand. So are we open to take any more MDO orders if it come along our way? No, sir. Now the stomach is full now. Okay, we have to stream and stream projects, and we have got our own other operations. At least not for next five years. Okay. And, sir, my second question was regarding, so you think that, we require close to INR 800 crore investment for this MDO two, MDO, second order of MDO. So how much, we are going to fund it through debt? We are working multiple combinations. One is the project-specific debt. Second is some equipment which we can go for the outsourcing models, like a lead model, and some in the form of equity. So it is going to be a combination of various structures. At least that, at least 70 to 75%, it has to come from the debt side. That's what we are planning. Only just wanted to invest, we'll have more clarity in terms of structure. Okay, and, sir, on the order side, so we are targeting INR 10,000 crore of new orders. In that we have close to INR 7,700 crore. We already received as a L1 order level like that. So from FY 27, FY 26 onward, for the more bigger orders, like INR 15,000 crore, how we are treating our team, execution team? Yeah, so the 25, we have kept around INR 1,000-INR 12,000 crore. That's the target, because we don't want to increase because the bandwidth now set is close to INR 900 crore-INR 1,500 crore, okay. Okay. The execution level, so gradually improving. Now, we have got almost like 10,000 employees working with us on role. Apart from that, we have got 12,000 employees. So in terms of, infrastructure is well set, and, we have kept a CapEx plan of close to INR 50-60 crores recurring every year we spend, so that, we have enough equipment, in-house. And, more important is the talent. It's like, attracting the talent from the, big companies, so that we are seeing a lot of people getting attracted to join government. A lot of like, NGO, we have created a separate vertical and, almost like more than 200 people we have recruited, and at top level, more than 20 people coming from Coal India, CCL Singareni, and that will function as a separate SBU. Apart from that, the continuous training programs to groom the middle level and young leaders, apart from the senior leaders, it's a continuous process. Now, the process in terms of in-house infrastructure is well set now to execute the projects. So to target from INR 10,000 crores to INR 11,000 crores of order book and execution, it is well set. There's two MDO, the team is set now. We have quite strong plan for next three years. So we applied from 2027 to 2028. We need to consolidate where to move. That is the plan for now. Okay, and sir, my next question, last question is regarding... So we are targeting from FY 26 to FY 27, close to INR 3,000 crore plus, revenue, which will be recurring. So on that, we are targeting, so in operational sense, we have close to 17%, EBIT margin, and you are mentioning that in O&M, EBIT margins will be better than that. So close to INR 3,500 crore of our revenue will be 17% EBIT margin. So overall, doesn't our EBIT margin will move upward of 15%, close to 14 to 15%? The FY 26 onwards, so there's a high probability that the margin will, yes, it should improve. Okay. We used to work 13 to 14% for years back, so at least that number plus we should move forward. There's a high potential because there is a lot of scope to improve the margins in these two SBUs. So there's a high probability we should improve that FY previous back margins. Okay. Okay, sir. Thank you, and congratulations for the future. I know. Thank you, sir. Thank you. The next question is from the line of Tia from investments. Please go ahead. Hello? Hello. Yeah, madam. Carry on, madam. Thank you for giving me the opportunity. My first question is in regards to the O&M order book. A couple of quarters, we've seen that it's been down. Now, in June quarter, I can see it's only INR 458 crore, while earlier it used to be around INR 1,100 crore, INR 1,200 crore. So what would be the reason for the same? Yeah. See, madam, this, the order book, what you're seeing is the residual. Normal what happens is the contract is for per year, okay? And we build something which is, subject to renewal. We take only the residual order book. If you see the gross order book is INR 2,500 crores plus. Okay. Yeah. So this year itself, we're expecting close to INR 1,200 crore-INR 1,500 crore of orders. That includes also the projects which are going to be renewed. So O&M, it works on a gross level, but we take net because that's the billing. Whatever we do, we deduct from the actual contract value. So therefore, the residual looks to be smaller. But I think the earlier numbers are also the residual number. Like, if I see, March 2022 numbers, the entire all the quarters were around 11- Because if the contract is renewable to the additions, it is a mismatch, so the residual number will come down, but you see that again, it will pick up. But the gross order book is INR 2,500 crores, so today, INR 950-INR 1,000 crores. This is expected to grow at least 15%, 15, 15%. Yeah. Rami here. What I would like to say is that, as rightly said, these are all long-term contracts, say 3-5 years, 2 years, 5 years, and all. The advantage in this is once we are established there, there's every chance of 90% of reusability of the same thing in the contract, in many of the contracts. And, every year, 25 to 30% of contract is renewed. That is a recurring order. Apart from that, the new opportunities, what we are making it in the, existing side of the projects, where we can also enter because of our background and experience, that will add up the, overall, improvement in the, O&M. And now international market is taking shape. For example, we have taken a long-term O&M contract in Nigeria, where we have done the installation work of a 400-megawatt-capacity power plant, more than INR 900 crore. In Middle East, you know, last year we booked a maintenance job and a specialized service jobs, about INR 150 crore. For that reason, we'll be able to improve the international O&M business also. Domestic, now there is going to be a lot of emphasis by the public sector also to enter into the long-term O&M outsourcing as a model, because the private sector has derived the benefits. That is why our presence of 68,000 megawatts is helping us establish with the public sector also. Like, three to 60 megawatts, Ghatampur, there are many other projects, as I told about the O&M, these opportunities are opening in the government sector also, and the private sector also, renewals will come. That is one of the reasons, you know, the presence will certainly go. One information is that in the last one month, we have received under INR 200 crore of O&M orders in the domestic market itself, from Adani Group and also from Reliance Industries. That is, Tottenham, et cetera. And, the opportunities what we are tracking in the business, as I told you, improve the O&M. Got it. And can you... Actually, I think you mentioned you're opening a master. Could you tell me the debt number? I'm not audible. Madam? Debt number. Yeah, yeah. See, the debt is close to INR 490 crores. After the drop, okay, net is INR 284 crores, which is more or less what it was 31st March. Right. Thank you. Hello? Yeah. That's it from my side. Thank you so much. Thank you. The next question is from the line of Deepak Kumar from Sapphire Capital. Please go ahead. Hello. Yeah, Deepakji, tell me, sir. Yeah. Namaskar, many congratulations, sir, for a great set of numbers, actually. I mean, I've been looking at the company for last 1, 2 years. The way they, you have scaled up is commendable, sir. Thank you, sir. Thank you. Thank you. Yeah, so, so my first question is on your O&M. I mean O&M, what are the margins we are currently doing in O&M? So in domestic, it's working in the range of 16.5 to 17.5%, some 18%. In international, it's slightly larger, but the volume is too small. Okay, Bangladesh is the first project where we could able to crack three-digit type contract. Mm-hmm. Now, by three, we have got so... What is the number? Blended scope, around 16.5 to 17.5%. One more aspect in this O&M, perhaps I should have shared that. The drinking water projects, what we are increasing INR 14,000 crore. Now, once the commissioning starts in the villages, covering the end of the year, there is going to be a revenue stream which will come on the O&M side of the drinking water based on the capital cost, up to 3%. That means if the present projects are fully implemented next one and a half years, perhaps we can get an additional revenue under four in the O&M itself from the drinking water systems for the next 10 years with escalation. That will be one of our initiatives. Yeah, that is a very good initiative on the non-farm. Correct. Correct. I also wanted to understand, is there any scope to increase the margin in O&M? Actually, O&M does involve a very higher margin, right? So but do you think that the 16 to 17% margin can be increased basically, by- Honestly, in domestic, we have to see that it's that number is maintained, okay, because we have to factor the employee cost, which is almost like 64% + the cost, because employee escalation terms of employee cost and all, okay, inflation and all. But there is a possibility in international market, because we have to see how much we can scale up. At least, next 2, 2.5 years, we are targeting INR 250 crores-INR 300 crores of that size. Mm-hmm. With the support of international, yes, there is a possibility, but as per the domestic is concerned, we have to see that that number is maintained. Okay. Okay, understood. Understood. And I understand, and when you mentioned we will... This FY 24, we are looking to convert 57 to 60% of opening order book. So, INR 5,000-5,500 crores of execution level we are looking at in this FY 24? 37 to 40% of opening, and plus there could be some conversion from the new order. So more or less, we are targeting that number, because first half, maybe the first, six months, the 35 to 40% conversion, thereafter, the residual 60% conversion should happen that follow. So we are targeting that number. 5,500, around, plus or minus from there. Between 37-40, because it's quite difficult to specify the numbers. Okay. Mm-hmm. Yeah. Yeah. So 37 to 40% of your 13,300-something. Range we are converting, yeah, we are planning this. That is including NBO order, right? I mean, INR 23,000 crore minus INR 9,300 crore, It includes a small portion of maybe INR 100 crore- Hundred crore. Yeah, yeah. That's all because, we don't see much addition happening this year. It's more of like a project mobilization and the execution will start this year. The big conversion will come from the next year onwards. Correct, correct, correct. And also this FY 24, you did mention, right, that FY 25 and 26, we are looking at 35% CAGR, 35% CAGR in revenue, right? FY 25 and 26. Yes, sir. Okay, okay. That's, that's good. And I also wanted to understand on your NBO, you mentioned O&M plus NBO one plus NBO two, just put together INR 3,000 crore revenue potential from FY 26 onwards, which will be our sustainable recurring source for next, maybe, what, 25+ years, right? Yes. Do we see any risk in this INR 3,000 crore revenue which we are looking at? ... The first two years, because the O&M, it's like, it's special model. Okay, this INR 1,000 crore to INR 1,000 crore to around INR 100 crore, which is now is called we're converting. So between that international may not grow significantly to 10 to 18%, but also we can reach by a high, from INR 600 crore to close to INR 1,400 crore, INR 1,500 crore. Mm-hmm. But the MDOs too, because what is important is, we need to develop these 2 projects first, 1 or 2 years. Because it takes time only in the initial development period. Once it's done, thereafter, it's like a recurring model. Mm-hmm. We are working towards that. What is important is that we got to set up the initial infrastructure, and critically we need to set up the material handling plant. There we got that expertise to set up CSP, that is not a challenge. And secondly, Katra, we have to set up Rahati and CSP. But having said that, parallel the work can start, nothing stops. So how to optimize the cost and improve the margins? Yes, of course, better money is based upon the local risks and all, we need to see once the ground reality comes. Okay. Apart from that, we don't see any challenges, because we have done a thorough analysis and we have worked in cost in those localities, so we understand that locality quite well. Our expertise in terms of CSP construction and material handling is more importantly, and equipment management, and then large network work where we have built that expertise last 10 to two years. So this will help in a big way. So I don't think such a position will happen. Yeah. What I would like to add, Ramya, here is that, see, both these MDOs are linked with a very important for substitution coking coal. Mm-hmm. One is we are putting a coal mine in the case of Katra. Another is that, whatever coal we are producing in the KPP project will go off like coking, this one, coal beneficiation plant has to be Central Coalfields. Therefore, that is our basic advantage, and here in India is heavily dependent on the import of the coking coal from Australia and Indonesia, et cetera. That is one of the main aims of providing this MDO contract in a big way. SAIL is directly doing it, as well Coal India is also doing it. Therefore, there is not, not should be any risk in these two projects in the long term. As Krish has said, one difference between our MDO operation and others is that we have got in more capabilities in operation maintenance, that not many people have that. Therefore, that becomes a value addition. Apart from that, we can do the project execution much better than others, because we have got strong in-house expertise, construction also. That should add up all, the better margins can all come. More importantly, now see, the imported coking coal is ranging INR 10,000-INR 13,000, even is plus, okay? And the rate of your structure with, the KBP is almost like INR 900+, and this is 3,000 times 5. So there will be a tremendous pressure on the customer to implement this project because, their buying cost is quite, expensive. Yeah, yeah. Coking coal is a very, I mean, very important resource to any steel company, right? And so- This is a great advantage, and both the customers are quite healthy. So seeing all these things, there is a lot of comfort on these two projects. There is. Actually, I agree, sir. I mean, even the margins that you mentioned of 13 to 14%, right? Potential by up to 20%. I do see there is upside risk, because I think one, about 35 to 40% of your revenue will be driven by just MDOs and O&M, which will have 20% margins. Yes, sir. Even drinking water will add a revenue, recurring on the O&M. Yeah. Yeah. Well, enough, I think that's it from my side. All the very best to you. Yep. Thank you so much. Yeah. Thank you. Thank you. The next question is from the line of Anupam Gupta from IIFL Securities. Please go ahead. Yeah. Hi, sir. Just one question. Your existing order book, almost 50% comes from PVP projects from Adani. If you can provide clarity on what the status on those projects in terms of execution, in terms of payments? Around 800, of course, we have done the ordering, the engineering issues and local configurations, because they're all retrofit projects. Therefore, naturally, some configuration, engineering, and other aspects have to be lined up. Based on that, this progress will further take up. Yeah. So maybe, see, as of now, like, the engineering part, okay, very first half, we, we don't see much, conversions happen. Only the second half, in terms of the ground conversions, okay, that we could see in the second half only. Okay. When you say 36 to 50% execution effectively includes that this should pick up in terms of execution, right, in the second half? Yeah. Yeah. Fine. Okay. Okay. But you don't see any issues in terms of payments or, project getting canceled or any of these things? No, no, it is a must. Actually, the mandate is very clear. This is an international commitment to reduce the sulfur emissions and then improve the collection, so with the efficiency of 95% collection. And therefore, 211 megawatts of coal-based plant, out of that 200... 169, 169,095, and more than 1 megawatt has been ordered, and there's no going back, and this is a national commitment. More importantly, last year's project, we went, see, based on our analysis, we wanted this project to be a cash neutral project. At any point of time, we'll see that with an advance plot, which is interest-free, there is purpose money with that. This policy will see that the complete risky within banks and the cash is neutral, whether the model will adopting. Sure. Okay. Right, sir. Thank you. As there are no further questions, I now hand the conference over to the management for the closing comments. Yeah, Ramya again. I think what Satish has told on the various numbers, the business outlook, what we have brought out and the interest shown by the participants. Only is that we continue to be bullish on the market, investments, both in the public and also private sector, in infrastructure, power sector, then rural development schemes are like drinking water and then roads, and then steel plants, then mining. Mining, iron ore mining, apart from the coal mining. Then the international markets should improve, particularly in the Middle East after COVID, and that is where now our O&M presence is well established in the international market, in West Africa and also in Middle East. And we've been looking for the new investments which come up now in the entire, in the Gulf area. And then, Bangladesh also is going to add up capacities. We are doing a major project, and Bangladesh plan is to gear up their capacity from the present 34,000 megawatts to nearly 40,000 megawatts, because they are power hungry. With all these aspects, perhaps, you know, we should look for a positive growth. And then more important is that the cycle time of implementation and learning in all the diversified areas, what we have done in power, non-power, apart from the traditional, that has stabilized now, and the manpower is well versed with the implementation cycle time, engineering management, engineering coordination, procurement, and then project execution. That should drive slightly better margins compared to the previous years, and that is why we are quite positive. Thank you. Thank you, members of the management team. Ladies and gentlemen, on behalf of Nirmal Bang Equities, thank you for this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.