I now hand the conference over to Mr. Prasheel Gandhi from Nirmal Bang Equities for the opening remarks. Thank you, Rohit, and good afternoon to all participants. Nirmal Bang Equities welcomes you all to 2Q FY 2024 earnings conference call for Power Mech Projects Limited. From the management team today, we have S. K. Ramaiah, Director, Business Development, and Jami Satish, CFO. I now hand over the call to management for opening remarks, post which we can take Q&A from the participants. Thank you, and over to you, sir. Yeah. Thank you, thank you, Prasheel. Hi, all. This is Satish. Good afternoon and best wishes to all. Hope you all had good Diwali. I have with me Mr. S. K. Ramaiah, Director, Business Development, and Ch. Kotaiah, GM Finance. Power Mech had one more great quarter with good set of numbers and execution. There is no change in overall plan set for Power Mech. Execution and ongoing business plan is in line with our projections and internal set targets. We are happy to see more and more opportunities coming in our core sector for projects, a combination of new and old plants getting revived. Moreover, we are also too excited to see plenty of opportunities coming in the operation and maintenance, both in the domestic as well as international market. This year, we will see a large order book addition coming from O&M space, from various projects in pipeline, which are in advanced stage, and orders from O&M during the year going to be all-time high in the journey of 24 years. For Power Mech, we are seeing quarterly execution bandwidth going up quarter- on- quarter. Going forward, we'll see the numbers going up significantly. In any financial year of Power Mech, execution during quarter three and quarter four contribute substantially higher as compared to quarter one and quarter two. Therefore, we'll see quarterly execution cycle improving significantly for the rest of the quarter of financial year FY 2024. Coming to quarter two and H1 numbers, the reported total income for quarter two, FY 2024, is INR 937 crore, and the EBITDA is INR 118 crore, and PAT is INR 51 crore. During quarter two of last financial year, the reported total income was INR 774 crore, and EBITDA was INR 89.5 crore, and PAT was INR 44 crore. On a quarter-to-quarter basis, Power Mech has demonstrated almost like, you know, 21% growth on the top line, and with the growth of top line, EBITDA has gone up almost by 32%, and PAT has gone by 17%. The revenue mix for quarter two, FY 2024, is as follows: Mechanical business has contributed INR 148 crore. Civil business, including railway water distribution, INR 496 crore. O&M, INR 272 crore, and electrical business, close to INR 17 crore, and others, close to INR 5 crore. Whereas during last year, FY 2023, quarter two, the contribution for erection business was INR 161 crore, civil, INR 367 crore, O&M, it was INR 226 crore, electrical, INR 17 crore, and others was INR 3 crore. O&M and civil has shown a growth of almost like 20% and 30% respectively. Erection, more or less, remained flat, however, this number again will go up significantly going forward. Electrical, consciously, we are not bidding for new projects, therefore, it's more or less flat. Coming to the H1 of FY 2024, the total income was close to INR 1,808 crore, and the EBITDA is INR 223 crore, and PAT is almost INR 102 crore. Whereas last year, H1, the total income was INR 1,523 crore, EBITDA was INR 175 crore, and PAT was INR 83 crore. There is a growth of almost 19% for H1 as compared to last year, and with the growth of the top line, EBITDA has significantly gone up by almost 27%, and PAT has gone up by almost 23%. Similarly, O&M and civil business has gone up by 17% and 33% respectively. Mechanical, there's a dip of 8%, however, it will continue to grow quarter three, quarter four. Electrical business, it's coming down because not much order booking is happening on the Electrical business. This year, we'll see a significant contribution coming from the water business because the order book is quite healthy. O&M continues to be the backbone of the company.... Contributing almost like 27% - 28%, and during the end, it will continue more or less the same percentage. FY 2024, because of the healthy order book, water business will continue to contribute close to 20%, 25% of the total business, and O&M will continue to be 25% plus. The mechanical will continue, both domestic and international, will contribute almost like 18% plus. The railway is again picking up with adding of the metro. This year, it is expected to be almost like 4%. We'll see that FY 2025, FY 2026, there will be significant change in the business mix, because water, because of its healthy order book, the contribution is going to be almost like 18%, 20% next one and a half year. Erection business is expected to go up almost to 25%-26%, and the railway is expected to go up to 7%. MDO, this year, we'll start with a small number, and this is expected to go up significantly next two years. FY 2025 is expected to be almost like 8%, and FY 2026 going to be almost like 16%. So there will be significant change in the business mix because of the increase in the O&M and MDO business. Improvement is also seen in overall margin profile, and same is further expected to improve gradually. On reaching MDO to peak during FY 2026, the margin profile will improve to a greater extent. Depreciation cost as a percentage remained lower side due on account of controlled CapEx spending. The finance cost, keeping aside interest on tax impact as a percentage to revenue, remained lower side and continued to control on account of improved working capital and cash flow. As you all know, with respect to search operations conducted by the Income Tax Department under Section 132 of the Income Tax Act 1961, during July 2022. Based on the deliberations with the assessing officer and as a prudent measure and to avoid any further protracted litigations, the company has made provision of INR 16 crore for the assessment years 2018 and 2019. The company has made all required information available to the department so far. With better deployment of capital, improvement in margins, we have also seen improvement in ROC, and this is expected to again go up significantly. As stated in our earlier calls too, the overall execution bandwidth is seen increasing quarter-on-quarter on account of various initiatives and strong increase in our resources. The company is well set to execute projects now in the range of INR 200 crores-INR 1,800 crores per quarter. Other developments include the operating cash flow for this period is almost positive by INR 70 crores, and the system generated free cash flow of almost INR 50 crores plus during this period, which is quite healthy. We are working on the same to improve further. Also, the average monthly collection of the company continued to be healthy. More importantly, the net current base, excluding cash and cash equivalent, has substantially improved on account of improved working capital cycle, change in business mix, and change in customer concentration. Net current base have come down to in the range of 130-133 days, and on stabilization of the MDO business from FY 2025 and 2026 onwards, we can expect significant improvement in net working capital base, and this can help the system generate larger operating and free cash flow. We can see quantum jump in free, free cash flow. More importantly, the gross debt and net debt remained controlled despite growth in the business and the order book. As on 30th September 2023, the gross debt is close to INR 450 crore, and the net debt stands at INR 226 crore. If we see as on today, we can proudly say that Power Mech Projects is a net debt-free company. Debt-equity ratio as on 30th September stands at 0.3, which has significantly come down because of the improvement in the cash flow. If you see net debt today, it's nil because the net debt is almost zero. Coming to this, two MDO projects, lot of developments and ground activities are happening, both the projects. The first project, Kotre Basantpur, a station forest clearance we got in November, from the government, we got in November. Environment clearance also, we have got it. Now, the project is ready to start now because EC and FC were the major, major milestones which we achieved now. We have applied for the consent to establish, this is expected to be next one month, therefore we can start the ground activity from this year itself. Coming to the second project, initial site establishment of mining activities already completed by October. More importantly, the heavy equipment, which are very important to start the excavation, started—we have started the procurement and transporting the equipment, and these equipments are expected to reach the site maybe next one week to 10 days. The core drilling activities already started during 3rd November. The EP consultant, with Vardan EnviroNet, we have finalized for the washery. Apart from that, the electrical connection, okay, for 1.46 MB, allotment along with the demand note received for JBVNL during October. R&R Colony fencing works already started. Apart from that, the mining area fencing work already started. We are expecting next one week, the Bhoomi Puja, therefore, we can start the excavation work maybe during end of this month itself. Therefore, we would see the revenue picking up from this financial year itself. Coming to the order book, order backlog as on 30th September is around INR 53,100 crore, with both the MDOs. Excluding the MDOs, the backlog is almost INR 13,400 crore. Similarly, the order book backlog as of today is around INR 52,500 crore, with both the MDOs. Excluding the MDO, it stands at INR 13,750 crore. For the entire year, FY 2023-2024, the company has set a target of INR 10,000 crore, and we keep the target as it is. We are confident of reaching this number, including the orders which we have received up to date, INR 1,800 crore, plus the projects which are in pipeline and in advanced status, close to INR 1,800 crores. We have identified opportunity size of around INR 46,000 crores plus. We're also expecting good amount of order booking and execution cycle at international market too. During FY 2024, large order intake is expected from the power sector, both in the O&M, mechanical, and civil construction. As we stated earlier, the focus will continue to be, going forward, consolidation and leveraging the growth, and the focus will continue on industrial plant, operation and maintenance, railway and metro, water, sewer connection, road, and MDO projects. The execution cycle during FY 2024, 2025, and 2026 is going to be robust and healthy on account of improved order book backlog and targeted projects in pipeline, and, more importantly, increased bandwidth in the execution cycle per month and per quarter. As projected, margin profile is improving and expected to improve further gradually year-on-year. Our plan to build business model to have a recurring long-term service model income to the tune of INR 3,000 crores-INR 3,500 crores plus, in combination of O&M plus MDO, for sustainable long-term growth from FY 2026 is possible. This model will help us in a bigger way to improve margin profile, working capital cycle, and in a large extent, improve the free cash flow. Government is well set to demonstrate execution and conversion in the range of 34%-35% of its opening order book in a year. In addition to that, revenue from MDO business as per ramping up of coking coal production plan. Going forward, O&M and MDO business will drive substantial growth in a significant way, and we have some more development from the business side. I'll request Mr. Ramaiah to add to it. Yeah. Thanks, everybody. Good afternoon, everybody. Thanks, Satish. You have announced some of the various numbers you have laid out. Yeah, as Satish has said, you know, the outlook continues to be bright because the trigger for that is the massive investments the government sector is spending in all the areas: energy sector, infrastructure, and then the drinking water systems, water systems, and railways and the metros. I think that is what is going to the company is going to be aligned with this business. And of course, O&M, there is a lot of revival to be seen. And, as for the numbers are there, what Satish has spelled out, the. The segment-wise numbers are the ETC and Mechanical portion, the present backlog is about INR 7,052 crore compared to INR 6,878 crore at the beginning of the year. The civil component of the work is INR 6,074 crore against INR 6,136 crore. The O&M is INR 353 crore, also INR 600 crore. Of course, we have to add certain numbers which will come up now. Electrical is INR 255 crore against INR 118 crore. MDO is a major component of our business, with about INR 39,732 crore of backlogs with both the MDOs. That should take us to a very healthy backlog in the near term, two to three years, or the long term, say, 25 years. Looking at the MDO side, INR 53,111 crore as on September, and as on February, INR 53,500 crore. Now, when we look at the opportunities, what we can see is that there seems to be a substantial revival of the power sector market in time. This is mainly driven by the apprehension of the load mismatches may happen in the couple of years, between the coal side, the power generation, and the non-coal side, that is the renewable power, with the present renewable capacity is about 125,000 MW. And with the total installed base of four hundred and thirty-six, four lakh thirty-six thousand, sorry, 411,000 MW and all. There is going to be further augmentation of the renewable power as the years go by, and that's why government has taken some remedial actions in terms of fast-tracking the investments in new projects. The present indications are that, apart from the NTPC, which is planning, which has already ordered Lara for BHEL, other projects are going to be in pipeline, like Sipat, Darlipali, Singrauli, Meja, Ramagundam, Patratu also. Then the GenCos, the generation companies, you know, they are having a plan of about 10,500 MW. That is going to substantially come up. Recently, government has approved the Yamuna Nagar project also. Looking at these projects, the expected capacity addition, which will come up in the next couple of years, should be about 23,300 MW. That is based on the new projects, what I'm trying to say. There is a revival of the projects about the first round of projects of 5,270 MW, has already been taken action at many of the projects. We have already taken some initiative in taking the orders there with Vedanta and also with Monnet Ispat. Now, government has asked recently, a policy minister has been directed by the Power Ministry, saying that another 5,500 MW of stuck projects, that also has to be revived, and they have prodded the state government undertakings also to participate in these bids, so that it revive. Therefore, the revival of nearly 10,000+ MW, plus a new addition of 23,000 MW, that should give a very good outlook for the power sector growth. In terms of it, our business is quite aligned with that in terms of the main part installation work, erection, testing, commissioning, O&M jobs and all. Therefore, that is one aspect on the new units and also the revival of the old units, I said, about 10,000+ MW. Then, the O&M opportunities has triggered substantially. Recently, I have seen that two major jobs we have taken. Indus Towers is a very big comprehensive O&M, about INR 429 crore, six-year O&M contracts. It is a very important breakthrough that too in the mining and metal sector, non-power sector, we have taken it. And then Raichur 2x600 MW, 1,064. And then Adani at Mundra, we have taken about INR 100 crore of jobs at the various O&M packages. Now, the opportunities which we are tracking in terms of the new projects are coming up with this Khurja 2x660 MW, Ratanpur 3x660 MW, North Chennai, possibly 1x800 MW, and then Buxar, of course, as the commissioning comes near to that. Then there is a major project in Balco with Vedanta Group, that also we are having a look at it. Therefore, all these opportunities, the ballpark figure of opportunities in terms of the EPC installation, plus the civil and BoP, which is our core strength, because coal mining also, metal mining is one of our cores since we established it. It comes to about INR 12,000 crore of opportunity, with these new projects coming up. And then the renewal of the old projects also it can add up to another INR 4,000-INR 5,000 crore. In all, it can be anywhere between INR 17,000-INR 20,000 crore of opportunities, both with the addition of the new capacities and also the renewal of the old projects, where half-completed jobs are to be taken up. There, you know, the execution, the faster execution ability is there, and the format is a preferred bidder for that, as you have seen in the case of Vedanta Group for the, it's a single large job. Recently we have inked one more major order with BHEL for the Talcher, INR 354 crore, on the main plant equipment, associated work, and civil works also. Therefore, with that type of initiative, this will continue to play in the coming months and coming quarters also. Now, coming to the other water-related projects, we have substantially identified a huge opportunity, particularly in the Madhya Pradesh, then in Karnataka, Tamil Nadu, then Madhya Pradesh also I said. Therefore, with all these projects, you know, the total opportunity is about INR 18,000 crore. Madhya Pradesh itself is planning about INR 9,000 crore in various schemes of drinking water, AMRUT schemes, urban water requirement schemes for various towns and cities, sewage treatment plants, et cetera. With our fast-track execution expertise, what we have done in UP for the drinking water schemes, perhaps we are well qualified for many of these jobs. Then wherever is required, we can have a tie-up with the other parties also, like micro irrigation, distribution, and those type of schemes also are coming in a big way, and that should help us. The various segments of these water systems are the sewage treatment plants, urban renewal schemes and the AMRUT scheme, and then water supply schemes, irrigation schemes, canal works. Of course, the most important is Jal Jeevan Mission, which is a flagship initiative of the Government of India. It is heartening to know that almost 70% of the rural villages are well connected now, and we are doing pretty well in what we are doing at drinking water schemes in UP for almost four major areas, nearly about INR 2,800 crore, INR 750- INR800 crore. Almost 30-35% of the work we have completed. Therefore, that gives us a lot of reference base and expertise, because the type of organization which what we established there is a distributed organization system. That means down the line, a grassroots level distribution organization system, village level, the area level, and then the block level, the district level and the zone level. Therefore, it is well-structured organization, nearly about 4,000 people are working, and already about 100 villages we have completed the 100% water supply scheme, and then water is going to those villages, and the people are seeing the benefits. And what is more important is the organization what we established, about 4,000 people with engineers, supervisors, field, and all the working staff, subcontracting staff, that should give us a strong base in undertaking many of the important water projects, drinking water projects, et cetera, also. Then one more thing, important thing which has come recently is that as we summed up these contracts agreements with the Jal Jeevan Mission scheme with the UP government, the finally it has been the numbers are out in terms of the operational and maintenance scope of the work. Earlier, it was only a general feature involved in the MOI, but now they've summed up those figures in terms of operation maintenance, because as we complete the execution of these projects village-wise, it is estimated 3% of the capital cost will come for the O&M over the 10 years with escalation provision. The present estimation is that the numbers have been given by the UP government for about INR 681 crore, and this we have not considered in our order book so far, and that will get cleared out now. Of course, another three to six months, we started opening of that O&M front also, once more and more villages come on the frontline. Now, this is on the drinking water and water systems. In the railway scheme, we have seen the experience, what we are gaining in Bangalore, Kolkata, INR 427 crore. We are doing about 14 railway projects, worth INR 1,540-1,500 crore, apart from including that BMRCL job. That is giving us, and recently we have taken some jobs from the railways. Then Rae Bareli, we have taken an infrastructure facility for the Vande Bharat infrastructure facility. We are working with Mumbai also, we have taken a BoT, some jobs also. Therefore, these opportunities will keep coming, and the railways and the network together, you know, offer new opportunities in terms of railway infrastructure, in maintenance depots, workshops, repair shops, and then the revamping of the stations and all those things. That also, a good feature is that now the organization is in place to execute these jobs. I think that is one of the features of Power Mech Projects. We are continuously building up the organization capacity in wherever we are diversified, and we want to sustain those type of organizations for long-term growth and all. And of course, wherever there are viable projects are there in the railway and in the road sector also, we will do it. For example, the Telangana job, what we have taken from Adani, as a EPC job, we almost completed 70%. That is a very fast progress, what we can say we have achieved it. And then the other two projects also, we have done nearly about 60% of the job in Mizoram, and then Karnataka also. Therefore, the background of these road projects, the railway projects should give us good background. And then the new initiative is going to come up in West Africa, in Nigeria, Ghana, Tanzania, and other places apart from the Middle East. And there are some new projects expected to come with 4,000 MW-5,000 MW in the Middle East, Saudi Arabia, then UAE and all. And already we have got organization there, about, as of today, 1,600 people are working in the Middle East and then West Africa and all. So that organization set up also will continue to help us to see that the new jobs we can take it and implement it also. Therefore, as Satish has rightly said, you know, there is a substantial opportunity in the market as part of the national infrastructure pipeline, which is in the fourth year of its implementation, third or fourth year of the implementation of Anandatalak Road. And many of the organizations who can catch up with that, they are benefited, including us, and we have been greatly benefited by this investment from the government side. And then private sector investments also will come up in the steel sector, then mining sector, and then coal side. And then Coal India is coming with sustained connectivity around 50 projects with an investment of INR 20,000 crore. Therefore, there are plenty of opportunities. We have to select the right technology, right partnership wherein is required for the association, where we don't have that in some of the new areas. And then the implementation mechanism has to be stabilized with the learning, what we have achieved it. And one of the features I can mention is that why our margins can improve further is the learning curve we are undergoing it, and without much addition in the capacities and the manpower, and also the equipment base, what we are having. If you see the turnover is consistently going up year after year, and that is a good feature of our operation. And with that, you know, better margins can be driven down the line. And then with more opportunities coming, perhaps we'll also get better margins in the market. This is what I have to say. Now we can go further from the orientations on the questions and answers. Yeah, yeah. So Prasheel, thanks for giving the opportunity. We can move forward to the Q&A. Thank you very much. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on their 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 the question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Pratiksha Daftari from Aequitas Investment. Please go ahead. Thank you for the opportunity. My first question is related to the tax provision that you mentioned. If you could just repeat the number, what is the provision that you're taking because of the surge? Yeah, we have provided for almost INR 16 crore, madam. This is including the, some of the interest component on this tax. So put together, INR 16 crore we have provided for. Okay, and this is full provision, right? You wouldn't anticipate any further provision authorities going ahead? Yeah. See, what they've done is, they've completed for some of the assessment years. So we don't expect some bigger amount to come. Okay, maybe next two quarters, we'll see that this 100%, this issue gets resolved. Therefore, the provision may remain more or less, slightly lesser than what we have provided for. However, having said that, we have got almost a refund of INR 40-45 crores plus. So in terms of cash flow, there is no impact. But however, it will have some impact in terms of the provision part. Understood. In terms of O&M, so, you know, we've almost done INR 500 crore of revenue in the front half. Just wanted to know what is the target that we have for this year? What kind of growth are we anticipating, as compared to FY 2023 for O&M? O&M, this year probably will be touching close to INR 1,150 crore-INR 1,180 crore. That is the target. Probably this will continue to remain almost like 25%-25.5% of our total business this year. Okay. Understood. And, what would be the monthly collection run rate right now? This is picking up, Pratiksha. It's almost like, it's ranging now INR 350-400 crore. And, see, normally like quarter one and quarter two, historically, it's like 35%, okay, 35, 35% plus of our total business. But however, quarter three, quarter four, there is a significant quantum jump. So we're expecting this, this number to pick up from probably quarter three, December onwards. And, I'm seeing that this number should cross INR 400-450 crore gradually. Okay. Okay, understood. And, so, you know, we had about INR 3,000 crore plus orders from water segment. So just wanted to know what is the execution guidance in terms of FY 2024 for water projects? For water project? Yeah. Yeah. See, if water, this will, this will play a significant part this year because the order book is significant. Maybe if all goes well, FY 2024, we are expecting close to INR 900 crore. That is the number at lower side, and it may go up to INR 1,000-INR 1,050 crore at the highest side. Okay. All right. Okay. And our interest costs for this quarter have gone up significantly. Is this because of bank guarantees or something? Because the net numbers haven't grown into this. Honestly speaking, the finance cost remained controlled. As stated, like, very some impact of interest cost on account of IT. So the provision of INR 16 crore also include some portion of the interest. Mm. So because of that, there is an increase of almost INR 3 crore and up to INR 4 crore. Otherwise, if you exclude that, the finance cost remains flat. ... Okay, okay. Yeah, so this is a non-recurring item. It's like, almost like a one-time. So, maybe we'll close this year so that there is no ambiguities carried on this front, okay? So, well, you'll see that this number coming down, because if you see the net debt as of today is almost like debt-free. I don't see this number to shoot up. Okay, understood. Thank you so much. Thank you. Participants who wish to ask a question, may press star and one to ask questions. The next question is from the line of Arun Subrahmanyam from Ampersand. Please go ahead. Yeah, Aisha, so my question is that, what kind of order inflow that you're targeting non-BoP in this current financial year? Sir, we have kept a target of almost like INR 10,000 crore, so we are not changing that target. So we did close to INR 1,800 crore of addition up to date. On top of that, the projects which are L1, it's almost like INR 1,800 crore plus. Mm. We are expecting good amount of additions coming from the power plant, both in the O&M, civil, also the mechanical part. This put together, we're expecting close to INR 4,500 crore. Mm. Therefore, we'll have a combination of orders coming from power plant, okay, both the old and new plants. And O&M, this year we may cross INR 2,500-INR 3,000 crores of addition. And on top of that, we are also targeting close to INR 1,500 crores of projects relating to water. Apart from that, if all goes well, railway and metro, we may add close to INR 800-INR 850 crores. And other civil and international put together, we're planning INR 10,000 crores. Understood. Sir, then what could have been the reason for the first half order inflow being little slow, and what will really change going forward? The first half, like, see, we were working more towards this domestic side, mostly on the power sector and some of the railway, apart from the road projects, okay? Of course, so O&M, it's been almost like finalized state, okay, but however, the, in terms of awarding, it took slightly longer time. Apart from that, some of the state selection code and all, okay. Some spillover may be there, probably in during December and all. Okay. So more importantly, what is important that the negotiation part, okay, it's almost done now. Okay, we could see that, conversion happening next 30-35 days. So maybe December and January, that's where we'll see huge number coming in. And apart from that, road projects, we have seen that, the tenders getting postponed couple of times. Okay, of course, this is close to INR 800 crore-INR 950 crore. That's what we were expecting. And, in Chennai, there was a bit of slow in terms of, discussions and negotiation. Now, that part we've already completed. Apart from this, the Vedanta, it took slightly longer time, but of course, the order conversion started happening. Apart from that, we're also talking some of the volume projects with Vedanta and BHEL also. Probably we'll see that, the. Normally, historically, if you see, like, the conversion first half, okay, historically less, but second half is more, even in terms of execution of the order inflow also. Now, I think what this is, what is happening also, of course, the elections, with these types of elections. Most of these centers are out, you know, that is where our confidence comes from the point that, you know, there are identified projects are there, the drinking water, power side, railways, and then roads also, and then international trade also is there. Therefore, the opportunity size is substantial as the inquiries are coming. There's no dearth of inquiry. It's a question of select the right combination of these products, projects for its execution and our fitting there. And then, you know, seeing that, you know, we select the correct projects and all for proper execution. That is one of the things perhaps, you know, the first off is always, because of the rainy season and then many of the clearances and issues, they may take more time to firm up all those things. In case of drinking water and water system, what has happened, this is the last phase of the ordering. Perhaps we have to do last, last one, maybe also. Therefore, they are now trying to complete that exercise. That is where, you know, there, there are about INR 18,000-20,000 crore of opportunity. The new power projects, because Lara has been awarded, there was a delay in awarding it also. Now it will come up. Also is already they have taken action and all. Now, the renewal of the projects, what has happened in Adani, we are seeing the benefits of that, and more, more of opportunities will be there in that also. The second phase of the renewal of the old projects, another 5,500, once it happens, also more opportunities will come. Maybe little bit of adjustment is there in time lag and all. But, overall, opportunity-wise, there is no dearth of it, in the domestic market. Particularly, we are very bullish on that in all the segments and all. The railways, in fact, if you look at the track record of 14 projects, what we are doing and the metro projects, what we have taken, there are also a lot of huge opportunities are there, and we are, we are into that, many of those things. The usual cycle time, once it happens, certainly we will be able to close it by third and fourth quarter in more, around there. ... Sir, if you can just call out that out of your total order backlog, are there any kind of slow moving projects, like, which are slower than your anticipation, and if at all things are going to be improving? Sir, can you repeat? Sorry. Yeah, sorry, there was a lot of disturbance. Yeah, some disturbance. So I just want to know that of the order backlog that you have, would you like to call out any slow moving projects, which are, like, getting little delayed compared to what you had thought of, including the one which you have received, the big one that you have received from, received last year? Is there any slow moving project, and, is that going to be improving, sometime soon? No, no, there are no projects, which are old, okay, or suspended. It's all our ongoing projects, okay? The plan is intact. Of course, there was some schedule changes in terms of the ordering and all, but there is no change in the plan, overall plan. Understood. Thanks a lot, sir. Yeah. Thank you, sir. Thank you. A reminder to participants that you may press star and one to ask questions. The next question is on the line of Prasheel Gandhi from Nirmal Bang Institutional Equities. Please go ahead. Hi, sir. Thank you for the opportunity. A couple of questions from my end. First, could you update us on the status of our FGD order and the potential revenue booking that will take place over next few quarters? Yeah, Prasheel. Yeah, the initial things were issues regarding the layouts and engineering. Certain types were required in that more firmly. And now the engineering order is in place, and then, you know, there is going to be traction on that Udupi project. For example, two to five, 25 MW, we are taking action on that. And that should be around roughly around INR 800 crore, that could take shape now on a priority basis, and then the others also should follow. Because FGD, if you look per se, what is happening is that, you know, the major interest in that for project implementation is to some extent fitting the system into the limited space and the technology selection and the fitting of that. As on today, if you see, 12,000 megawatts, sorry, about 10,000 megawatts are in the capacity addition on the FGD side, out of INR 1,65,000-1,68,000 megawatts identified. Ordering has been done about INR 1,05,000 megawatts. Therefore, in most of the things, there is a general amount of little bit lag is there initially because of the finalization of engineering, layout issues and all. Of course, the other side also, there can be some issues related to fixing the tariff also, those inside with the DISCOMs and electric boards also. That is where, you know, the government is also little bit giving the leeway for them to implement it, but they are very firm on that. Now, for all the projects, the latest update is that government has extended the deadline up to 2027. That is the overall the entire country's requirement. But where the ordering has been done, you know, the usual contractors schedule should be there, barring the issues related to engineering fit ups and then the layout issues, finalize all the access availability and the state of the stages. Yeah. Probably in terms of revenue between Prasheel, like, FY 2024, maybe quarter two, quarter three, quarter four, okay, quarter three, we may expect INR 50-100 crore. Maybe quarter four, it may go up to INR 250-300 crore. FY 2025, maybe in the range of INR 1,000-1,200 crore, or it may go up slightly by another INR 200-250 crore, okay? This is the plan, what we have got now, okay? We will have more updates all this quarter three. We'll take end of the quarter three or maybe beginning of quarter four. We'll see the scheduling part and if something can be improved in FY 2025. Sure, sir. Sir, secondly, on the margins, we are seeing your margin jump significantly by 90 basis points year-over-year this year. So would we expect this, first, what will be the reasons to stay, and second, would we expect further margin improvements? What do you think will be the sustainable margins for, like, maybe 13% or 14% of margins? See, we had the first plan is to see that the old project mix comes down, okay? Therefore, our cost was the royalty, which is impacting straight into our EBITDA margin. That should come down, and that is happening. So there is a natural, mix change because of rebuilding the PQs for in-house directly. So to some extent, and to a larger extent, that is helping us to push the margins. So, so the first plan is to get back to our normal historical margins, which we used to, which we used to report at 13, 13.5%, and, that is quite possible FY 2025, 2026, okay? And with MBO getting stabilized by FY 2026, we could see that, the number may go up to 13.5%+, 2026 onwards. So the first plan is to bring back our normal margins to 13, 13.5 by FY 2026. We'll see that every quarter there is some gradual improvement in the margin profile. And on top of that, we are, we have given a clear-cut instruction to our business development, no support for any projects below threshold margin limits. Therefore, we are not rushing for projects for low margin, just to build the order book, okay? So that is also helping a great extent to add the quality orders and see that margin profile is maintained. ... So just a follow-up, so what is the current mix of your old projects? So how much of the order book would still have that old projects with higher royalty payments, and when do we expect this to complete? This will settle down by FY 2025, so we could say another 25%-35%, in that range. Sure, sir. Thank you very much. I have a few more questions, but I'll get back in the queue. Yeah. Thank you. The next question is from the line of Amit Vora. Please go ahead. Good afternoon, gentlemen. Thanks for taking my question. Congrats on a very good set of numbers. Excuse me if I'm asking this again. The only thing is that you had mentioned that for completing the MDO project, there might be requirement for you to raise some debt as well, other than the equity that you have raised. So is there a plan to further raise any debt or no? Yeah. The first project, Kotra Basanpur KDP, which is a smaller size, we have already tied up power funding cost of PFC INR 260 crore, which is project-specific, and the servicing will be done from that SPV. That tie-up is already done. For the second project, we need to set up the infrastructure. On top of that, we need to also build a washery plus coal landing plant, which is larger in size. That is expected to be almost like INR 790 crore plus. We have raised the equity, so we have sufficient equity. Having said that, we have lined up some debt part from our existing banks. Should we use or not, we'll take a call because the internal system itself drawing some surplus cash flow. Therefore, we wanted to use or not, so probably we'll take a gradual call. Of course, the PFC part we'll use, but the second part, Tasra Washery, we'll take a call gradually, sir. We'll take, if at all, need basis, but not at least for next 16 months. There will not be any increase of debt in the Tasara project. Okay. That's, that's great to know. Just one question. Now, we are almost 1.5 months in Q3, so what is your estimation on the Adani project? Is there any... You did mention, but I'm just saying that because we are already there almost 1.5 months in Q3, what is the status there? Is there any possibility that, you know, what, what kind of revenue booking can happen there? See, Adani, as I stated, like, quarter three was in the range of, 50-150 crore. That's the maximum we can do quarter three. We are working on that. We have spent some money. And, out of the total packages, Udupi is quite active. So slowly, by FY 2024, the max what I'm expecting is INR 250-350 crore. That's to, the package of Udupi we may book only quarter two 2024- That's the second half total you are expecting between 300-400 crore. Is that correct estimation? No, sir, for the entire year of FY 2024, I'm expecting in the range of INR 250-350 crores. Quarter 3 may be in the range of INR 50-150 crores. Okay. Last thing on exports. So order book that you have targeted, and you have mentioned for INR 10,000 crore, this includes both domestic and exports, or it is only the domestic orders? No, it's put together, sir. Exports, we have not taken a larger target this year. The maximum what we are intending is maybe INR 250-300 crores. Of that, maybe INR 180-200 crores is O&M itself. Oh, it's negligible, sir. That's not- FY 2025, probably we may need to keep a larger target, but for this year we have kept a softer target. Understood. Thank you. Thank you so much. All the questions have been answered. All the best. Thank you, sir. Thank you. The next question is from the line of Bharanidhar Vijayakumar from Spark Capital. Please go ahead. Yeah. Good afternoon, sir. So when you are talking about the opportunity from the power sector, from the new projects, you mentioned projects worth 5,270 megawatts from revival of projects is also there. So just my question is whether are these projects which have already been announced but were shelved due to various reasons, now coming up again? No, they are firmly firmed up. These are all, well-regulated, what is that called under, initiative schemes it has come and then tendered and awarded. For example, JSW has taken the job in Orissa, then Meenakshi at, Andhra Pradesh, Vedanta have taken it. And then, you know, now that, final, re-bidding has taken place for the Amarkantak 2 into 650, it will get unsettled between Reliance. Earlier, PFC was the L1, and now Reliance has given a better offer. Sorry, Adani has given some better offer. Now, that way, most of these first phase of the project, or what I said, about 5,000+ megawatt, more or less everything is firmed up. Now, what I'm trying to say, that itself will have maybe optimal jobs. It'll have an investment of at least substantial investment. You can say easily about INR 15,000 crore-INR 20,000 crore overall investment, and then in that we'll have a share of INR 4,000 crore-INR 5,000 crore, our opportunity side. Now, coming to the second chunk of these initiative projects, you know, government has now elaborated that and saying that state SOEs and other companies also, state-owned entities, can also participate in that. That they publish the list of those projects also. That is also coming to substantial, about 5,000-6,000 MW. Once it happens, you know, that will add up to the more opportunities. That is what as far as the, the... I think government is very firm on this revival only because of the scale which has created, that as a renewal, element of the, percentage of the power goes up, there can be huge disturbances at grid. They want to avoid that. That situation can anytime in the next 2-3 years. They want to, to fill up those gaps fast so that the base load operations are well established.... all these plants are available for day night operation when the renewable power takes over of the bulk of the generation and all. So I think we are very clear on that, and that is why we are also seeing that the organization, the setups, and the people, what we are having, we are keeping them, and we are focusing on these new projects also in a big way. Okay. Okay, understood. My second question is, so of course, you mentioned about the NTPC's, new projects and the, this revival and the NCLT projects and other 10,000, but there is no mention of any projects from state GenCos. Like, why is that the case? Are you seeing any state, GenCos projects also in the pipeline? Yeah, exactly. I think what our government has seen is that, why state government, for example, private sector is coming up. For example, Adani has taken over, Vedanta has taken over, Reliance also is bidding for Lanco Amarkantak. You know, JSW has taken that Orissa project also, the IPP, and JSW has taken over that Mytrah stock. Now, what the government is saying, they want to enhance the basket of this one for the bidders, and that's where, you know, I think this guideline has come just one month before. I have seen in the website of power industry, and it's a clear guideline issue, and they want to push these balance projects also. I've got a list of projects. If required, I can share that separately. Okay. Maybe I will get in touch with you to get that. Sorry. Actually, my question was regarding state GenCos, like say, Tangedco or APGenco. These state GenCos are not coming up- Yeah, yeah, exactly. What you are telling is exactly around that. Yeah, they have been prodded by the government to please participate. Oh, you mean okay. I understand. Yeah, that is the... They issued a circular. They issued a specific circular for that. Okay, sir. I will, you know, get in touch with you. you. Thank you so much. Oh, if required, I will send you that. Sure. Okay. Thank you. A reminder to participants that you may press star and one to ask questions. As there are no further questions, I would now like to hand the conference over to the management for closing comments. I would now like to hand the conference over to the management for closing comments. I would now like to hand the conference over to Mr. Prasheel Gandhi for closing comments. On behalf of Nirmal Bang, that concludes this conference. Thank you for joining us, and you may now disconnect your line.