Please note that this conference is being recorded. I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Equities. Thank you, and over to you. Thank you, Rishastri, and good afternoon to all participants. Nirmal Bang Institutional Equities welcome you all to the third quarter FY 2024 earnings conference call for Power Mech Projects Limited. From the management team today, we have Mr. S.K. Ramaiah, Director of Business Development, Mr. Rohit Sajja, President, Business Development and Operations, and Mr. N. Aravind, Chief Financial Officer. I now hand over the call to the management for opening remarks, post which we can take question and answers from the participants. Thank you, and over to you, sir. Thank you, Natasha. Good afternoon to you all. This is Arvind, N. Aravind, the CFO of Power Mech. I have with me Mr. S.K. R amaiah, Director of Business Development, and Mr. Rohit Sajja, President, Operations and Business Development and Operations. I welcome you all to the earning call, quarter three and nine months of financial year 2024. The performance for quarter three and nine months of the financial year continued as per our set targets for the entire year. The reported total income for quarter three, financial year 2024 is INR 1,115 crore, and the EBITDA is INR 141 crore, PAT is INR 61 crore. During quarter three of last financial year, FY 2023, the reported total income was INR 912 crore, and EBITDA was INR 106 crore, and PAT was INR 51 crore. On quarter-to-quarter basis, Power Mech has demonstrated almost like a 22% growth on the top line, and with the growth of top line of EBITDA has gone up almost 34% and PAT has gone up by 21%. Q3 financial year 2024 performance was satisfactory and on expected lines, despite a little slowdown due to five state elections. The revenue mix for quarter three as follows: Our mechanical business has contributed around INR 231 crore, civil business, including railways and water distribution, INR 596 crore, O&M, INR 260 crore, and electrical business close to INR 21 crore, and other income, close to INR 7 crore. Whereas during the last year, FY 2023, quarter three, the contribution for erection business was INR 144 crore, civil, INR 492 crore, and O&M was INR 260 crore, and electrical business, INR 12 crore, and other income was INR 3 crore. Mechanical and civil has shown growth almost like, 60% and 21% respectively. Electrical has grown, growth of, 71%. O&M, more or less, remained flat, but however, this number again will go up significantly going forward. During quarter three of financial 2024, domestic business has contributed almost like 94%, and the balance 6% has come from the international market. Similarly, power sector has contributed 47%, and non-power sector is almost like, 53%. Similarly, the total reported income for nine months of financial year 2024 stands at INR 2,923 crore, and the EBITDA is INR 364 crore, and PAT is almost INR 164 crore. Whereas during nine months of last financial year, the reported total income was INR 2,435 crore, EBITDA was INR 281 crore, and PAT was INR 134 crore. On a year-on-year basis for the nine months, there is a growth of almost like 20% in revenue as compared to the last year, and with the growth of top line, EBITDA has significantly gone up by almost 30% and PAT has gone up by almost 22%. Revenue mix for nine months is concerned, mechanical business has contributed INR 518 crore, civil business, including railway, water distribution, around INR 1,585 crore, O&M, INR 756 crore, and electrical business, close to INR 47 crore, and other, close to INR 17 crore. Whereas during the nine months of last financial year, the contribution for erection business was INR 458 crore, civil business, INR 1,235 crore, and O&M was around INR 682 crore, and electrical business, INR 52 crore, and other income was INR 8 crore. Similarly, erection, O&M and civil business has gone up by 13%, 11%, and 28% respectively. Electrical business is down by 10% because not much order booking is happening on electrical business. The mix between international and domestic, the domestic business has contributed around 92% during the nine months of FY 2024, and rest has come from the overseas business, it is around 8%. The mix between power and non-power business stands at 52% and 48% during the nine months of this financial year. FY 2024, because of the healthy order book and water business, will continue to contribute close to 23%, 23% of the total business. Other civil works in both power and non-power contributes close to 34%, and O&M will continue to be around 23%. The mechanical will continue, both domestic and international, will contribute almost like 18%+, and transmission distribution will contribute 2%. So we will see that FY 2025, there will be a significant change in the business mix because of healthy order book. The contribution from O&M is going to be almost like 18%, and erection business is expected to go up almost by 27%. And railway expected to go up by, go up to 1%, and MDO, this year, will start with a small number, and this is expected to go up significantly in next two years. It is expected to be almost like 7%. So there will be a significant change in the business mix because of the increase in the O&M pie and the MDO business. Improvement is also seen in overall margin profile, and same is further expected to improve gradually. And on reaching MDO to peak during FY 2026, the margin profile will improve to a greater extent. So depreciation cost as a percentage remain lower side on account of control of CapEx spending, and the finance cost, keeping aside interest on tax impact, as a percentage to revenue, remained lower side and continue to be controlled on account of improved working capital and cash flow. With reference to our income tax raid during July 2022, as you are, you are all aware of the search operations conducted with Income Tax Department, and, the company received notices under Section 148 of the Income Tax Act. In response to the said notices, the company filed a return of income for the assessment year 2016-2017 to till 2021-2022 assessment year. As a prudent measure to cooperate with the department and to avoid further protracted litigations, the company offered additional liability of INR 26.21 crore towards the income tax and INR 11.91 crore towards the interest on income tax, and paid the entire amount during the financial year 2024. We do not foresee any need for further provisioning on the income tax matter is concerned. With the better deployment of our capital, improvement in margins, we have also seen improvement in the return on capital employed, and this is expected to again go up significantly. Other developments include the operating cash flow for the period is almost positive by INR 21 crore, 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. So net current days, excluding cash and cash equivalent, has substantially improved on account of improved working capital cycle, change in the business mix and change in the customer concentration. Net current days have come down to 125 days from 131 days, and as stabilization of the MDO business from a financial year 2025 and 2026 onwards, we can expect significant improvement in net working capital days, and this can help the system generate larger, larger operating and free cash flow. We can see quantum jump in free cash flow. More importantly, the gross debt and net debt remained controlled despite growth in the business and the order book. As on 31st December 2023, the gross debt is close to around INR 499 crore, and net debt stands at -INR 23 crore. But you can see, as on today, we can probably say that Power Mech is a net a debt-free company, and the debt-to- equity ratio as on 31st December, it stands at 0.28x, which has significantly come down because of the improvement in the cash flow. But if you see, net debt today is nil because net debt is almost zero. The status of the two MDO operations. Coming to the two MDO projects, lot of developments and ground activities are happening in both the projects. The first project, Kotre Basantpur Stage I, Forest Clearance from the government we got in November 2023, and applied for Stage II clearance, and the report is passing through various levels to the Additional Chief Secretary, Jharkhand, and they forwarded the file to MoEF&CC on 13th February, and also consent to operate applications filed and awaiting the approvals from Jharkhand State Pollution Control Board to start the works. These approvals expected to receive in next two months. Therefore, we can start the ground activity of OB removal from the month of May, and coal mining will start from July 2024. Coming to the second project, Kalyaneswari Tasra project. The major required equipment mobilization was completed for initial mining activities. Environment clearance for setting up 3.5 MTPA capacity of washery is under progress and expected to receive the approval by July 2024. R&R colony building construction of 190 units in 4 hectares of land is under progress. Mining works are already started, and OB removal and the coal production works are in progress since January 2024. Approximately around 80,000 tons of coal excavated and targeting to excavate 300,000 tons by end of this year. So regarding order book status, coming to the order book, order book backlog as on 31st December is around INR 55,858 crore with both the MDO, and excluding the MDO, the backlog is almost INR 16,125 crore. Similarly, the order book backlog as of today is around INR 57,328 crore, with both the MDOs, and excluding the MDO, it stands at INR 17,595 crore. For the entire year, 2023-2024, the company has set a target of INR 10,000 crore order inflow, and we keep that target as it is. We have received orders worth INR 6,768 crore as on today, plus three projects worth INR 1,780 crore are in L1 status, and project worth INR 5,500 crore, which are bidded and awaiting for the results. We are likely to see the balance order addition in Q4. During FY 2024, large order increase is expected from the power sector, both in the O&M and mechanical and civil construction. Our focus will continue to be in industrial plant, O&M, railway, water and MDO projects. All the existing projects are on track and moving as per the schedule. This financial year, revenues will be in the range of INR 4,500 crore-INR 4,700 crore, depending on the traction of FGD and MDO business. EBITDA margins remains the same as Q3. FY 2025, we should be able to achieve 30%-35% year-on-year growth. Margins will be stable. We'll see a bit of upside depending on the mix from FGD and mining. We do not foresee any decline in the margin. Similarly, order book target for the current and next financial year looks to be comfortable. Power Mech is well set to demonstrate execution and conversion in the range of 32%-33% of its opening order book in a year. In addition to that revenue from MDO business, also ramping up coke coal production plant. Going forward, O&M and MDO business will drive the substantial growth in a significant way, and we have some more development from the business side. I request Mr. Ramaiah to add, please. Yeah. Thanks, Arvind. Thanks, Rohit, Rohit and our team here, and thanks to the participants. I think Arvind has given the overall numbers and various aspects of the business, financially and other things also. But what is happening in the market is a substantial bullish approach in terms of the investments coming up and opportunities opening up. And we can also see a change in the product mix for the better. What was a downside in the power sector is looking up now substantially. That has been reflected significantly in the mechanical business. The order backlog has gone up from INR 6,878 crore to INR 7,034 crore, with a 22% increase. Civil side has gone up by 27% to INR 7,800 crore. O&M is playing a major role because a lot of new projects are getting commissioned of the, what are the backlog available by various private players, and then NTPC and other, the other, players also. That is where, you know, we have made a lot of, significant, achievements in terms of, substantial increase in the order booking there in the current year. So then, you know, electrical, of course, it will have a subdued role there, current situation and also the competition and other things. From the overall perspective, what we are seeing is that, in all the sectors, there is going to be, continued investment. That is what is driving us the business. And the power sector, if you take it, there are three segments in which it is driving the business. The new unit capacity, where the projects which are already identified plants are 19,000 MW by NTPC, [audio distortion] and then the utilities around another 13,000 MW, and then private also is there, Adani is coming up at Mahan. And then if you add up the stressed projects, about the 5,750 MW and 6,700 MW from the first stage and the second stage, all these things are under resolution, and many of the orders, many of these opportunities are getting converted, and we have taken the benefit of that in JSPL Angul and then in Vedanta, Singhitarai. And then recently, in the case of Meenakshi also, both the revamping and the O&M job has come up. So that is a positive thing for the mechanical business. Installation, it is traditionally we are very strong. O&M, the order backlog has gone up by 66%. One more development is there, on the O&M side, what we can say is the conversion, which will come up for the O&M also in the drinking water scheme, where we are doing about INR 2,725 crore of job. The conversion is happening faster. Now the order status also is that, whatever orders are released, that 3% of that will come as a O&M contract for the next 10 years. For that, that is, to be added as a part of the order, and now that comes to INR 681 crore. Therefore, if you add up the total O&M profile in terms of the power, non-power, and also the drinking water, the order booking will go up almost to INR 2,500 crore by end of the year. And that should give a significant growth for the O&M progress and also better margins in the coming year. Now, apart from that, the new units business also is looking up with orders grabbed from Mahan, INR 825 crore; BHEL Talcher also INR 354 crore; and then Vedanta for the special project at Singhitarai, INR 396 crore. For us, that is a positive development. This will continue to happen. Another major thrust has been the railways, apart from the roads. Railways, we have taken significant strides from that. Recently, we have been awarded the Yavatmal-Nanded job, about INR 375 crore. With all these things, what we can say is that the present opportunities are together with the L1 position of the pending FGD orders with the Goenka Group, and then one in the micro irrigation project and the railway project, you know, we stand to have around INR 1,500 crore-INR 1,600 crore of L1 position. If that happens, it will significantly improve the overall order backlog. And apart from that, around INR 15,000 crore of order follow-up is under progress in various segments for the different opportunities. Now, coming back to the overall position in the power sector itself, BHEL has got orders of INR 55,000 crore. If you look at the order of the previous year also, which is getting for conversion in the case of Lara, Yamunan agar, which has been ordered recently to BHEL, Mahan, which has been ordered by Adani Group, then Talcher, which has already ordered, and then recently, Talabira, 3 into 800 MW. All together, you know, BHEL's order book has ballooned like anything to almost INR 55,000 crore extra. And this, we are hoping to get the conversions happening faster in the coming year also, and the last quarter also to some extent. After the total projects which have been awarded in all these cases by NTPC, Mahan, there is 7,720 MW. That leaves us more scope for the conversion of power, power mechanism contractor and the subcontractor. Our estimation in that is that, you know, something like INR 12,000 crore-INR 15,000 crore of order booking, order opportunities will come up in the next year also. Some of the projects we can see where how much is happening in the current year also. Now, coming back to the overall capacity addition in the power sector, the present position is that the coal and lignite capacity stands at 214 GW. It will go up to 280 GW. In that, about 27,000 GW are implementation. Another 30,000 MW will be under ordering and execution, which has started. As I told you, about 7,720 has been already awarded to various players, and then balance also will come up. That should help us. That should throw us a overall supply and EPC contracts for the, m ainly, it may go to BHEL, unless L&T doesn't take a major call or some of the Chinese player, outside players will come. The estimated opportunity for the coming year in all these things for the overall supply is more than INR 2 lakh crore. Therefore, our own estimation is that at least INR 15,000-20,000 crore of opportunity should come up in the overall power sector in the coming year also. Then, there is the railways, you know, we have seen the annual investment is estimated INR 2.5 lakh crore as part of National Infrastructure Pipeline, and that will continue to happen. And then the metro projects, you know, the present mileage of 870 km will go up to double it, doubling of the track, the metro stations to almost 1,700 km. And then, the major investments, which are very much useful for us, is coming in the railway maintenance shops, workshops, and then maintenance depots for the metros also, which we already entered there. For that will add up a lot of opportunities, which will be focused, because railways give good terms of payments in the privatization process and advances also, and that is a major focus for our opportunity. And then roads is there. We have already completing a major project for Adani in KK Road, in Kodad Road in Andhra Pradesh, Telangana. That should give us a lot of track in terms of bidding for the good projects in the future also, and there is unlimited opportunities in the road sector also, and then railways also should go up. Therefore, our assessment is that presently INR 50,000 crore of opportunities are closely following. Some may also get closed in the current year. We have to see how much it happen based on the election cycles and also when the Election Commission will give a date for this one election, then that depends on the ordering also to some extent. But what we can say is that next year, the way we are looking at all the opportunities in terms of power sector, O&M, and then the non-power sector, particularly in the railways, then the metro projects, and then irrigation, and then of course, the road projects. For us, you know, it is easy to target INR 40,000-INR 50,000 crore, and should see the growth potential and increasing the order backlog. That is what is, I can say. Therefore, further thing on the MDO and other things, the international operations and many, many other developments of the company, Rohit will bring out the facts. Hello, good afternoon, everyone. Thanks for having us on the call. This is Rohit. So as Arvind has touched upon our mining operations briefly, I'll give you the other data in detail. So we have already started mining in the recent MDO that we have won, and we have already mined around 85,000 tons of coal, coking coal, over the last one and a half months. And we expect this capacity to touch 2.5 lakh-2.8 lakh by the end of this financial year, in the next one and a half months. So we'll be booking significant revenues from Tasra. And coming to the first mine, I think all of you are aware of the political situation in Jharkhand. So as Forest Clearance Stage I, there were some compliance points raised by the authority, so we had to refile it. And after refiling, the secretary and because of the political disturbance happening in the state, it got, there's a slight delay, I think a month's delay, but we expect to break ground in the month of May, as Arvind had said, and by July, we'll be starting mining here also. So that's about for the MDOs. And coming to overseas operations, we are making significant strides with overseas operations as well, and we have added a couple of new clients this year. We have also won a small maintenance project in Qatar. We have added Qatar as a new geography, and we are making significant strides, putting in some efforts in Saudi Arabia. There's a lot of spending happening in the power sector. Saudi Arabia, in general, has plans to add more than 25 GW of capacity over the next year. This is mostly combined cycle capacity, and Power Mech is, w e have the experience of executing combined cycle power plants in the past, in the region. So we are one of the frontrunners. We have been talking to EPC companies, and they've already collected quotes from us. And the, the maintenance, I think this year we have won a maintenance project in Bangladesh, and you'll see this going forward, you'll soon see this long-term maintenance contracts and this trend, Power Mech taking more and more, long-term maintenance contracts for the years to come. And because a lot of public sector, utilities, this was always, t hey were always giving out contracts, but they have started giving out long-term contracts. So slowly, the trend is changing, and you'll see, you'll see Power Mech taking more contracts in the next one, two years to come in the maintenance space with the different power utilities. We have already, we are already working with the likes of DEWA, Dubai Electricity and Water Authority, SEWA, Sharjah Electricity and Water Authority, ADNOC, Abu Dhabi National Oil Company. We are doing some work for the refinery and also the power plant there. We are also executing a long-term maintenance project in Nigeria, with the Dangote Group, where we have constructed the power plant and now we are consequent, O&M model was also given to us. So this is an update on MDO and overseas business. We can proceed with question and answer session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Okay, sure. We have a first question from the line of Nirav Vasa from ASK Investment Managers. Please go ahead. Hello, sir. Thank you very much for the opportunity. Is my voice clear? Yes, sir. Yeah. So, sir, first thing that I wanted to know is that out of the pending order backlog that we have of almost INR 17,596 crore, what percentage of order backlog would be from BHEL? Sir, even if you have a rough cut number, it's fine. No, BHEL, that separately it is there, but we have to compute and give that information. Sure. It is something that is there. Very good. And then wanted to understand about the competitive scenario. Like, what we have seen is that in the thermal power, for a very long period, there was practically a lull. So a lot of EPC contractors and the supply chain, which was operating in the thermal power system, are not in the best of the financial and technical shape. So according to your assessment, as this scenario opens up in forthcoming years, how do you see the competitive scenario panning out? Do you expect these smaller players to again bounce back, or do you see a scenario wherein you along with some of the other smaller players would be the major players who would be benefiting from the consolidation of it? Yeah. Now, there are two things, there are two aspects in this. Let us first understand how the ordering will happen. Mm-hmm. As for the major competition for the EPC players, now BHEL stands out significantly. We have seen they have taken almost more than 5,500 MW of orders in the recent times in the current year, earning almost INR 55,000 crore in the last one and a half years. Now, L&T is there, but, we have seen some sort of a, not only a drift, maybe they have, they're loaded with lot of orders in Middle East and domestic market infrastructure, and they may be having a second look. Now, another part, from the, I'm talking about the EPC point of view, the third player perhaps can play a role is in the General Electric. Of course, they are, as the MNC, they have got their own concerns in terms of bidding structure and the risk management perspective. They have to figure out for the Indian markets, because being MNC, they are more risk-averse. But they are still pursuing a look at that, but they would need to have some partnership because of the undergoing of the many optimization changes and also certain things which are taking on mergers and amalgamations with the various power sector in the international market also. For that, they need some inputs also. Now, that is there. First, unless the Chinese players come as a backup, in the later stage, if our Chinese come to the market in early 20 years back or 15 years back, unless that returns, I, we, we feel that BHEL continue to play a role, and they have got a capacity of 14,000 MW-15,000 MW of manufacturing capacity in the all the manufacturing engineering. They can easily cater to 5,000 MW-7,000 MW without any problem, provided their working capital improves. Now, coming to the contracting and subcontracting, if you look at it, you know, in the, there are two, three segments. One is the main plant equipment and the balance of plant equipment, and then the civil works. Now, in both the cases, we have got a significant presence as Power Mech, or not, we are perhaps, you know, we are the leading player with a substantial market share in the main plant, boiler, turbine, and ETC. And then the civil, also the main plant with the balance of plant, except for the cooling towers and even chimney we have done in own project. Most of the civil works in a plant we can do. Therefore, there are many players in the civil package, at least seven to eight players are there. In the mechanical also, players are there. What has happened over the years, owing to the downward trend in the market, in the power sector investment and their inability to. The competitor's inability to grasp the opportunities with the balance of the market in other than power, not power sector, there has been a downtrend in the appetite for many of the private players, and then, that is to be seen. Because recently we have seen, Mahan we have taken a major job, and then with even BHEL, we have taken a job at Talcher, and then with Vedanta also, we have taken, and then Meenakshi also, recently we have taken up. So that shows the trend, at least 50%-60% of the market share of the power sector business, we should continue to get it, or if not more. That is mainly because, the Power Mech has established a strong presence and execution capability, which, we can proudly say not many can match in terms of resources management, equipment resources, construction management, and then construction support services. What our team can gather, provide, with our huge, head count, both in the, in the installation business and other sectors also. That synergy, we are one of the few people, perhaps next to L&T, who can undertake the end-to-end solutions in the construction, then operation maintenance, and then civil work, structural work, mechanical work. That type of synergies, there are not many players. You have got a, Simplex or a JMC for the civil work, or you can have, Indwell and Texcel for the mechanical work. They may not have a combination of the player who can do the civil, structural, mechanical, and that is where, you know, the advantage comes, what we have seen in Mahan recently by the Adani, and also we have seen even with BHEL also, and then Vedanta group also. Therefore, competition can be subdued in the sense there is appetite for so much. Suppose the order, BHEL gets more orders. Suppose next year they get 78,000 MW, then that will add up to another INR 60,000 crore-INR 70,000 crore. Therefore, this will continue another two to three years at the rate of INR 50,000 crore-INR 70,000 crore per BHEL. Therefore, accordingly, you know, there is a further scope for us to enhance our potential in the power sector. That is what our assessment is. Thank you very much. This is, really, this is really helpful. So, sir, if you can help me understand, your scope of offering per megawatt can be how much crore? Like, I wanted to compute, your scope of work per megawatt in crore. No, I tell you, present rate, present, market rate going is INR 8 crore-INR 8.5 crore. Of course, that is a comprehensive EPC job. It's an end-to-end solution, of a total solution. That is engineering, procurement, construction. In that, you know, 55% goes to the main product equipment, 55%. That means almost INR 4.5 crore-INR 5 crore, and the balance of plant will be around INR 3.5 crore-INR 4 crore. Normally, the, the construction part of the business, the mechanical equipment for the customer for the EPC contractor will come to about, a 10%-12%. That we can say around, INR 80 lakh-INR 90 lakh or INR 1 crore per megawatt. Now, if it does further, comes down to the base level of a subcontractor, it can be something like, you know, 5%-8%, 6%-8%. Therefore, I can say roughly, suppose if it is, customer is INR 80 lakh-90 lakh per BHEL, per megawatt for the services portion and the main part only for the equipment, our portion can be something like INR 40 lakh-50 lakh per megawatt. Of course, in the case of civil, that will add up another 10%-15% based on the scope of the material available. That means the customer gives the material like cement, steel, then, you know, the, the overall value of the contract will go to almost, INR 10 lakh-12 lakh per megawatt, 10%-12% of the per megawatt. That means again, it is another 80 lakh-90 lakh. I will say both together can go up to almost equipment, erection, installation, and then civil work, structural work. If you add up all these things, you know, for the services part of the work at site, out of INR 8 crore, you can take INR 1.5 crore-INR 2 crore per megawatt. Now, that is as far as the new installation is concerned. Now, as far as the O&M portion is concerned, once it comes for operation, because all these plants nowadays, customer is outsourcing also. We have seen recently, now the many new projects will come, mostly they will outsource it also. For that, we can take about INR 10 lakh-INR 15 lakh per megawatt. Now, this is how. Therefore, in that way, opportunities are there for government installation, civil work, structural work, once it is commissioned as an O&M service. Great. This is really very helpful. So my second question is pertaining to what is the amount of debt that you can borrow to fund your growth? End FY 2023, the net worth of the company was INR 1,277 crore. So if you can help us with the banking limits available, to chase this growth. Sir, as of today, we are running with debt of around INR 499 crore, and we are running around INR 400 crore-INR 500 crore fund limits with the working capital lenders. Roughly around INR 50 crore is our achievement loans. So more or less, we are maintaining within the existing limits only and with the, we recently increased the fund limits from INR 450 crore to INR 500 crore, sir. So out of which we are using only at 75%-80% only working capital utilization we are doing. So we are getting the mobilization advance from the new works, and we are managing the working capital. So, so far we don't take. We are not forcing any increase in the fund limits. We are maintaining with the existing advances from the customers. No, my question was, because the growth can be really very high and sector is seeing massive consolidation, the odds of order inflows for your company can increase exponentially. So I wanted to understand, what is the maximum capital employed, which can come? So INR 1,277 crore is, is your net worth. So what is the maximum amount of debt which banks are currently ready to lend to you, both fund and non-fund? No, they are, they are okay to as long as the rating is good, and if my projections are good, in line with the projection, up to 25% of my projections, they are ready to fund, sir. And my top line of, INR 4,000 crore, if I am doing business, they can able to fund up to 25% of that, turnover. 25%? Yeah. Out of INR 500 crore-INR 600 crore. We can, we can borrow another INR 500 crore-INR 600 crore, depends on my top line. We are not planning to raise any debt, and we are managing it with mobilization. Great. Sir, other point is like, apart from power, what is expected is that the hydrogen-related CapEx can also increase exponentially. Any, any, any update? Are we chasing that opportunity? How do we intend to get into that entire ecosystem? Any updates can you share? Yeah. Actually, the government's plan is to have a CapEx done around by 2030. So already some pilot project pilots or experimental projects have been started by private players like Adani. Reliance is making a massive investment, INR 75,000 crore. Adani is making INR 75,000 crore. Now, a lot of players are coming up. Now, as far as we are concerned, it's a part of the service business. Suppose the annual investment comes to 5 million tons, I cannot, I don't have the figures, but the ballpark figures of what private players have invested already, Adani, Reliance and others, you know, it can be substantial, it can be lakh of crore. Therefore, again, I, what I can say is that in terms of doing the work, civil, structural, mechanical, and piping work, there is not, no, no big deal in that. We can easily do that. It consists of vessels, piping systems, civil work, structural work. And some inquiries have started coming, but we have to take, we have to see it come in a substantial way. That means pilot projects are coming up, not in a big mass scale. I think that will take another, maybe one, one year or one and half year. Once it comes, you know, perhaps that will add up to the additional, delta in terms of the opportunity. But we have to work out the real details on that, because things are not very clear in the market. Thank you, sir. My query is done. Thank you, sir. Thank you very much. Thank you. We have our next question from the line of Mohit Bhansali from Aryan Group. Please go ahead. Sir, can you hear me? We cannot hear you clearly, Mr. Bhansali. Please use your handset mode. Yes. No. Yes. Can you hear me now? No, sir, the volume is very low. Hello, can you hear me now? Yes. Hello? Yes, please go ahead. Yeah, yeah. So thanks for the opportunity. My question is regarding your MDO. First one is Kalyaneswari Tasra, which you spoke about. Have you started mining, and when the billing will start? And what kind of, you know, coal you are generating, like, coking, it's a, metallurgical coal or it's a normal coal? Please, sir. Yeah, thanks for the question, Mr. Bhansali. So KTM. Yes, Kalyaneswari Tasra is in short, known as KTMPL in abbreviation. Okay. KTMPL, we have started mining, and we have already mined 80,000 metric tons of coking coal. This coking coal, which is used as a raw material in steel plants, and it's washery grade coal. KBP, the second MDO. Okay. We plan to start mining in the month of May. So probably by FY in, y eah. So I'm asking, so 80,000 you have already mined, and what is the future plan? So you will continue to raise it to what level, sir? I hope you to, you said that you will raise it to 300,000 by the end of this year, 300,000 ton per month. We'll be mining 3 lakh in total quantity, 2.8 lakh-3 lakh in total quantity by March 31st, 2024. But, you know, there is a, w e plan to ramp up the production too slowly by next financial year, we plan to do two and then 3.5, because the mine peak rated capacity of the mine is 4 million metric tons per annum. And we are also awaiting the environmental clearance for the washery, for which the terms of reference have been obtained and submitted. So once the washery is up and running, we—that's when we want to achieve our peak, which is 4 million metric tons per annum, by end of, by end of FY 2026. Okay. So next year you will be mining around 2 million tons. That's what you are saying? Yeah. Next, next financial year, we'll be mining around one. 1.5 million. 1.5 million metric tons. So this will be then washed, because you don't have washery right now, what will happen to that then? So we are still billing. We have different prices until the washery gets commissioned. Okay. We expect to raise our first bill in the month of February. Okay. Okay. Fair enough, sir. Fair enough. Thank you. Thank you for the information. Thank you. We have our next question from the line of Riya from Aequitas Investments. Please go ahead. Thank you for giving me the opportunity. My first question is in regards to the water project of the Jal Jeevan Mission. Where are we looking at right now? Post-election, how do we see the traction following up? Water, water, water project, so. Jal Jeevan Mission. Jal Jeevan Mission. Can you repeat your question now? So basically, I wanted to have, y eah, water projects, yes. Yes, madam. Still, you know, see, of course, overall tenure is like that, you know, INR 3.6 lakh crore worth of the current government investment started in 2019. It may go up to 2025-2026 also. And as on today, around 14 crore households have been connected, and we have got a presence. We are doing in UP, three major projects, about INR 2,729 crore, for about 1,950 villages. Now, some more projects are in the bidding stage, and it comes, you know, the investment is coming. We will continue to be there because we are focusing on the conversion of those orders now as on hand. Apart from that, many other water projects in urban infrastructure, sewage treatment plants, and there is now micro irrigation and other things. Because we have one project we have, we have, we already bid, we have stand alone for a micro irrigation projects in Madhya Pradesh for INR 600 crore. Therefore, we find drinking water is a very good market for us. As the tenders come in different states, for example, Maharashtra, Madhya Pradesh, Tamil Nadu, and Karnataka and other projects also, we will definitely go for that. We'll try to see what more we can do than that. Got it. But I was asking more in terms of post-election. Do you see a slowdown in ordering? No, I'm not getting the question. Riya, can you repeat your question? I was asking in terms of post-election, do we see any slowdown or are we seeing any slowdown right now in ordering? I'm sure the execution pace has picked up. No, I don't think any of the projects, what we have done, you know, 17,000-some order backlog, what we are having, all the projects are in progress. I, we are not in any, stoppage of the work or slowdown the progress or funding issues or local issues. As of today, it is not there. Everywhere, the customers are pursuing the projects aggressively. That type of, any major hiccup, we have not noticed. Noted. All the projects will come up. And currently, what does the pipeline look like? Yeah, there is an L1 status of, roughly around, INR 1,500 crore. Of course, the old FGD where we stand L1 for the, Goenka Group of, projects about, 1,750 MW, around INR 870 crore. We continue to pursue it. We are seeking extension. And then, you know, there is an irrigation project of INR 600 crore in Madhya Pradesh, and then a railway project is also there. And the only thing, you know, we hope, if, election doesn't come in a way, perhaps, you know, we can get some, some more, penetration in that. Apart from that, you know, the ongoing process, we have got about INR 5,500 crore of offers submitted out of the total immediate opportunities of INR 15,000 crore in infrastructure, in railways and then in power, et cetera. But we have to see how much we can get it converted immediately. But the next year, as I told you earlier, we can easily track of projects for opportunities of INR 40,000 crore-50,000 crore and perhaps if not more. Got it. That's very encouraging. That's it from my end. I'll join the queue for further questions. Thank you. We have our next question from the line of Anupam Gupta from IIFL Securities. Please go ahead. Yeah, good evening, sir. A couple of questions. Firstly, the guidance which you said that next year you are looking at 30%-35% growth, that is basically only for EPC business, right? Not including any mining revenue for next one. I'm sorry, you're sounding muffled. Can you repeat your question, please? Yeah, Anupam, please, sir. Please, please, please tell again. I think there's some disturbance. Yeah. So what I was saying is the guidance of 30%-35% growth, which you talked about for FY 2025, that is, prior to including revenues from mining or that includes revenues from mining? That is including everything, everything, sir. So margins, see, we depends upon the mix of FGD and mining. That's what I told you earlier. Should be. Mm. Between the range of 30%-35%, including the variation between the FGD and mining. Depending on the mix from FGD and mining, it should. So I'm not talking about margin. I'm talking about the revenue growth, which you said 30%-35%. Regular business. Yeah, regular business, yeah. 30%, which is this current year, we are almost at 20%, year-on-year growth. 25% we will touch to this year, and we are because we received the more order book during the current year and additional new works also received during the current year. So we are targeting 30%-35%, plus any additional, yeah, FGD, if there is anything additional, then it will touch maybe beyond that. Yeah. From the INR 17,000 crore of backlog, 40% conversion, if you can take. Understand. 35%-40%, that's INR 66,000 crore. Understand. Yeah. Understand. If you can, can you just update on the status of the FGD project on the Adani, which is somewhere around INR 8,000 crore of the total INR 17,000 crore. What is the status as of now? Yeah, I think the order for Udupi project, now another INR 250 crore, I think we have done almost INR 1080 crore of ordering. Another INR 200 crore-INR 250 crore of ordering will happen in the, in the next, t his month, it should be possible. Therefore, that will come for some conversion, modest conversion, this current year. We are, in Q3, we have recognized around INR 117 crore we recognized, sir. Whatever the orders we have placed on the customer, we may recognize some FGD order by before March. So basically, this part of the Adani order book will get executed over by 2025, 2026 fully or what is the timeline you are looking in? The Udupi project is going strongly, 2 into 5 25 MW. Now, out of the total 8,460 MW, we have to see the other projects. There is [audio distortion], then, then we have got so many other, other projects. And, there are so many other issues on environment and then local clearances and PPAs also. I, I think this is one of the things, because they need to have a delta PPA for the existing power purchase agreements, and. Mm. That should play some factor in that, and that is where, you know, FGD, there is some. Yeah, and then engineering integration, because it's retrofitting, which has to be done in a confined space. Mm. It is taking little bit more time. Mm-hmm. Okay. Ideally, one should look at a three-year sort of execution from now. I think that should be a reasonable execution? Yeah, we can say for Udupi, it is going strongly. We have to see how they take shape for the other projects also. There are so many other things. And then the new, not only that, with the, not only with Adani, the other, other customers also same status continues. Some sort of a, they are waiting for so many things in the clearances, engineering, retrofit issues, and then, you know, the PPA issues. There are so many things are there, that is why little bit of this slowdown can be there. Understand. And sir, coming to the mining side of it, so, Rohit highlighted the, target production for Tasra, mine, which is 1.5 for, for next year and possibly reaching 3.5 in, in the next six months. What will, what should one, what are you targeting for the CCL mine in terms of, production ramp up over the next two to three years? Hi, Anupam. So CCL, so we plan to break ground in the month of May, and perhaps the first year's contracted quantity is around 400,000 metric tons. We will achieve 400,000-450,000 metric tons in FY 2025. Mm. The next year to FY 2026, the contracted quantities are at 1.5, and we plan to do around 1.6-1.7. So there is a ramp up schedule for this. Okay. A gradual ramp up schedule. Then the subsequent year is around three, and the peak derivative capacity is five, which we are gonna do in two and a half to three financial years from today, which is FY 2027. Okay. When we achieve 5 million metric tons per annum. But yeah, CCL is on its way. We'll start producing the first batch of coking coal, and we'll sell it to CCL starting July onwards. Understand. This is useful. And one question on the international projects which you are taking, you said you have added, and you're looking to take mix in Saudi and Saudi as well. So those will be on the same lines as you did in Australia, right? So basically, it is a ETC contract which you are looking to do and not material risk on your books, right? No, no, no. It's only ETC. We don't plan to venture out into the civil or any other transmission and distribution space at the moment. All we want to focus on is ETC plus O&M. ETC plus O&M, in all the sectors that we are present in. It's predominantly. Understood. Power and oil and gas. Okay. Okay, understood. That's all for my question. Thank you. Thank you. Thank you. We have our next question from the line of Mohit Bhansali from Aryan Group. Please go ahead. Yeah. Yeah, thanks for, thanks again for the opportunity. Sir, I just want to, you, you know, you told me that in KTR, you are going to mine in a big way in next one or two year, but your washery is still, you are going to get the approval. I came to know that, BCCL has just opened up, one big washery very near to your mine, that is known as Madhuban Washery. So management, have any plan to, you know, send their coal, like, outsourcing for washery to get the coal washed and again sent back to the principal? Yeah, Mr. Bhansali. So the, our contract says that we cannot use any outside washeries to wash the coal until we construct a washery. So there is a Chasnalla washery, and we are aware of this Madhuban. I think it's internal to SAIL on what they do with this coal. So what we are currently doing is, we are stocking it up in a stockyard, and now we have to deliver it at Chasnalla washery. Initially, if it's any other washery, until we construct the washery, then we'll have to decide it, SAIL has to decide internally and let us know. If it's away from Chasnalla, the more kilometers, it will be compensated as well. Okay. Sir, once again, you said that next year from Talabira, you're going to mine around 1.5 million-2 million ton coal. Is that correct, sir? 1.5-1.6. Million ton next year. So it will be around 1-1.5 ton every month, per month. 1-1.5? Yeah, lakh. Yeah, yeah, yeah. Lakh. It is around 1.5 lakh, 150,000 metric tons per month. Yeah. 150,000 metric tons per month. Million metric tons per month. Okay. Okay, sir. Thank you. Thank you for my queries. Thank you. Thank you. Thank you. We have our next question from the line of Subrata Sarkar from Mount Everest Finance. Please go ahead. No, thank you. My question has been answered, so thank you. Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. We have a question from the line of Sabyasachi Mukerji from Bajaj Finserv AMC. Please go ahead. Yeah, hi. Thanks for the opportunity. My first question is, you know, you have currently about INR 8,500 crore of order book in the civil business. And similarly, if I look at the erection segment, almost again INR 7,500 crore kind of, you know, backlog. What is the expected execution timeline over here, and do you have capacity to execute at such pace? Yeah, I think this is doable based on the resources we are having. The headcount itself is 32,000. In that, of course, 10,000 we can take it from the O&M side. Balance 20,000, if they are mainly focused on the civil, structural, mechanical and ETC jobs. And then the cycle time for all these projects, based on the ordering, what they have done is, it varies from 30-42 months, 40 months, something like that. Let's say average, it can take about three years. So therefore, if you look at the order backlog as on today, for the civil and mechanical works together, it comes to around INR 16,000 crore. Therefore, what we have done peak in many of the large, ETC business and civil work in, somewhere in, 2012 to 2015, when lot of orders came up and lot of capacity for it, annually, the capacity increased from 15,000 MW to 20,000 MW. Therefore, at that time, Power Mech was playing a major role. In fact, today, the largest number of the ultra-critical projects, we have installed about 27 units across the country. And also, as I told you earlier, we have got integrated approach of doing civil, structural, mechanical, ETC, and then post-commissioning O&M also. So we get a lot of synergy in terms of resources, and then, capital, and then establishment cost, which we can do better than many others, and this is, perfectly doable for us. Okay, you said, close to three years, that is almost 36 months, 12 quarters. So basically, if I just do a simple math of what would be our quarterly run rate, in 12 quarters, you have to probably execute INR 16,000 crore-17,000 crore, which boils down to somewhere around INR 1,300 crore-1,400 crore quarterly. Is my math correct? Yeah, you are perfectly correct, because the last month we achieved INR 1,100? INR 1,100. INR 1,100 crore. Now, this month, this quarter, perhaps it will go to INR 1,400 crore-INR 1,600 crore. Now, of course, the last two quarters, always you get, you get a better output and better this one because of the, all the, all ideal conditions. Now, taking that INR 1,200 crore-INR 1,300 crore is perfectly doable, because of the enhanced order backlog, it will go up to 20%-25% each year, and then with that, conversion also will improve. In fact, it will add up to our better utilization of the assets, manpower, and equipment also. That is a positive thing for us in this type of conversion for us. Got it, sir. My next question is on the guidance. Just to clarify, you gave a guidance of INR 4,500 crore of revenue for FY 2024, and on top of that, 30%-35% growth in FY 2025. Did I hear it correctly? Yes, sir. Yeah, yeah. Yes. Okay. So the follow-up to this thing is that you have currently about INR 17,000 crore of order book, if I exclude the MDO contract, and let's say you end around the same number, INR 17,000 crore-INR 18,000 crore of order book in FY 2024, that becomes the opening order book for FY 2025. If I do a 40% kind of a conversion, it comes to around INR 6,800 crore or something around INR 7,000 crore, which is again way, I mean, the growth number then is very big, if I look at from FY 2024 to 2025. Where am I missing? Yeah, yeah. I think, you know, there, there are many large orders, perhaps railway orders, than, for example, road sector orders. Even the, the capacity, the order size of the, the installation business has gone up. For example, Adani has this INR 825 crore, BHEL has INR 354 crore. What we used to INR 100 crore, then, INR 150 crore orders, now it has doubled up, tripled up. Therefore, that gives the, on the shorter cycle time, more, more, packages in the same period, civil, structural, mechanical, and then, with the common establishment, it is doable. Sir, with INR 4,500 crore, assume that FY 2024 is my turnover, then if I add 30% on that, it will be around below INR 6,000 crore. My order book as of today is around INR 17,000 crore, even if you reduce INR 6,000 crore for FGD. Further, I may have to add another INR 2,000 crore-INR 3,000 crore of orders expecting to receive. Around INR 12,000 crore, I said in my opening remarks also, we generally do one third of my order book as a turnover every year we are executing. It's easy, we can able to reach this number, and again, MDO operations also will add to this number. Next year, order booking also will come. First two quarters, whatever orders booked, that will come for conversion in the second and fourth quarters. So we can hit around INR 6,000 crore in FY 2025, ballpark? Yes, that's what we are targeting, sir. 30% of the current, whatever the turnover we are going to achieve in FY 2024. Even if you take INR 4,500 crore as a minimum, then on that, INR 5,850 crore will be my top-line numbers for the next year. Got it. Last question from my side. What, you know, all these revenue numbers, what it will kind of have an impact on the margins? Do you will have, I mean, we'll see some bit of operating leverage, how the margin should move? Sir, if you compare to my Q, we are more or less maintained with the Q2 and Q3 the same level. Compared to the previous year, there is a upside, increase of 30% margins. Based on the depends on the mix of FGD and the mining, the probably the margin will go up, or otherwise, we do not foresee any drop in the existing margins. It will continue the same level, at the same level. Okay, that's all from my side. Thank you. All the best. Thank you. Operator request has been initiated. If you'd like to cancel this request, please press star zero again. Give me a moment, please. Mr. Gupta? Yeah. Yes, please go ahead. Yeah. So just, so just wanted some clarity on the CapEx. So what is the CapEx you will do at, for the EPC business and what is the CapEx which will go towards the mining business in FY 2024-FY 2026? With reference to washery is concerned, approximately around INR 690 crore, which we projected the CapEx, total CapEx, out of which INR 240 crore we raised funds through through QIP. And balance INR 450 crore, we are raising a loan at a government level. So by over a period of 2026, SPV level, so at the, b y 2026, the CapEx requirement will be around INR 690 crore for the washery itself. Apart from that, SPV level, we are raising funds for the HEMM requirement and other plant requirements. We already, bare minimum requirement, we already acquired the machinery, and the mining activity is going on. It depends upon the requirement of the site, we, we may raise additional equipments at SPV level. Okay, so let's say if I look at the consolidated term, what should be the yearly CapEx, which you are budgeting broadly, including SPVs and the EPC business? EPC business level, probably at INR 450 crore is my, INR 690 crore is the CapEx requirement. Mm. At the SPV level, then it depends upon the availability of land and other issues, then we have to, we have to see that majority of the funds we can, through internal approvals, we can fund those equipments. There is no challenge in terms of. We are not raising any, much major, loans at SPV level. We, we will based on, depends on the requirement only, we'll raise the CapEx. Okay. Okay, okay. That's all for my question. Thank you. Thank you. We have our next question from the line of Riya from Equitas Investments. Please go ahead. Hello. Thank you for the follow-up. I would like to ask, what is our current portion for international orders for us? International. INR 113 crore. Sorry? INR 113 crore backlog as on today. INR 130 crore? 113. 1, 1, 3. INR 113 crore backlog. Okay. And currently in this quarter, you see that order intake on O&M has increased significantly. So what would be the top major orders that we received during the quarter? Yeah, there are many orders, what has come in the. Any major, one? Yeah, we received one, the Ghatampur Thermal Power project, around INR 263.57 crore. Okay. Another one is the Meenakshi Energy, around INR 675 crore, we received, order from. Yeah. Mm. Meenakshi Energy from Andhra. And another, Dariba, Rajasthan, we received, 2 into 91.5 MW, Dariba, Udaipur, Rajasthan, Hindustan Zinc, around INR 229.2 crore from them also. And. Mm-hmm. Yeah. Going forward with the increasing contributions from O&M and with higher share of mining MDO orders coming into our numbers, what kind of margins are we seeing for the upcoming quarters and next year? With reference to MDO operations are concerned, because initially, there will be a low revenue and, cost will be less. So we are expecting [audio distortion], there's a change in the mix during next year. It depends upon the mix, probably, between the FGD and the mining. Probably, we can able to tell you in the next quarter post, after getting a proper, information from the site, we can able to explain you in the next quarter now. Got it. And. Only we can able. Got it. Thank you so much. I answer the questions have been answered. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments. Over to you, sir. I think thanks for your participation and the very interesting questions asked. I think we are continued to be bullish with the growth what, I mean, there's growth about, and there are many developments. Rohit has explained on the MDO and also international operations. I think the NIP, which is a National Infrastructure Pipeline, which is contributing immensely for the opportunities, both in the infrastructure, power sector, energy sector, and then which is getting converted. And perhaps most of the customers and even investors, they are very bullish on all these investments with aggressive projects being followed, implementation. We feel this profitability growth, EBITDA enhancement, and then the order backlog enhancement will continue to play in our operations. One advantage for us, obviously, is that the more and more projects commissioned in the power sector, for example, 27,000 MW of power projects are under implementation, and that will come for some sort of a wind down opportunity to come next year also. That's why we have seen almost INR 2,000 crore of wind down orders coming as on today, which is a huge, huge jump in our order booking in the wind down. And also the spot in the orders, what we got in the installation business and the civil works also for the Mahan power plant also. For the, t hat is what we expect to continue to be there in the coming years, at least two to three years. Thank you, sir. On behalf of Nirmal Bang Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.