Ladies and gentlemen, good day and welcome to Power Mech Projects Q2 FY 2025 Earnings Conference Call hosted by Nirmal Bang Equities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Institutional Equities. Thank you, and over to you, ma'am. Thank you, Dorwin, and good afternoon to all participants. Nirmal Bang Institutional Equities welcomes all of you to the second quarter FY 2025 earnings conference call for Power Mech Projects Limited. From the management today, we have Mr. N. Aravind, Chief Financial Officer, and Mr. S. Kodandaramaiah, Director of Business Development. I would now like to hand over the call to the management for their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir. Thank you, Natasha. So I have with me Mr. S. Kodandaramaiah, Director of Business Development, and Mr. Rohit Sajja, President of Business Development and Operations. So I'll request Mr. Rohit to start the opening remarks, and then I'll start the presentation. Good afternoon, everyone, and thank you for attending the investor call. So I would like to start by giving an overview of the order book initially and also a picture of the new order inflows that we're expecting for the rest of the year. And then we'd like to touch upon the mining operations briefly, and I'll hand over the call to Aravind to talk about the numbers. So this year, we are targeting an order intake of around INR 12,000 crores across various sectors, namely power, non-power, civil infrastructure, and water sectors. And as of 30th September 2024, we have secured orders worth INR 3,100 crores, taking the total order backlog to a little over INR 58,000 crores. And excluding both the MDOs, our unexecuted order book stands at INR 18,402 crores. We have bid for. There are INR 8,900 crores worth of projects in the pipeline that we have bid for, and these are expected to be announced. The results of these projects are expected to be announced in the next three to four weeks. Apart from this, we are also seeing over the last one, one and a half years, we have been seeing a considerable amount of growth in the power sector and with close to 80 GW of capacity addition planned by 2032. Of this, around 37 GW has been tendered, and around 43 GW is yet to be tendered. This translates to a potential opportunity of INR 86,000 crores for Power Mech in the civil and mechanical workspace, and that too only the construction. This includes both the boiler turbine generator areas and also the BOP civil and mechanical areas. And we are also targeting the BOP EPC space, which would translate into an opportunity size of INR 2.1 lakh crores for the next four to five years. And apart from this, we are also actively exploring a few opportunities in the green hydrogen space, especially the SECI tenders that have come up for the green hydrogen derivatives. So again, we have tied up with a few electrolyzer manufacturers, and then we are in advanced stages of forming partnerships with them. So looking ahead, we expect to expand our order book in line with our growth plans over the next five years, focusing on our core sectors like power and infrastructure while also diversifying into green energy. And talking a little bit about the MDO business, we have made significant progress over the last one year in both MDO projects. And this year, we have the Tasra mine. We have secured the Kotre Basantpur. We have secured all the permissions, and we are about to break ground probably in the next three to four days. We have secured the forest clearance also to start with the tree felling activity. We expect to extract the first coal production in the month of January or February this year. Kalyaneshwari Tasra is also gaining momentum. We have completed equipment mobilization for initial mining activities and also received environmental clearance for setting up a 3.5 million metric tonnes per annum capacity washery. To date, we have done an OB removal and coal production of approximately OB removal activity is going on. We have done around 382 tonnes of coal production. Now I request Mr. Aravind to update on the Q2 and half-yearly numbers. Thank you. Good afternoon to you all. The performance for quarter two and six months for the financial year continued as per our targets for the entire year. The reported total income for Q2 financial year is INR 2,425 crore against INR 937 crore in Q2 FY 2024, an increase of 12% year-on-year. EBITDA is INR 134 crore against INR 118 crore, a growth of 13%, and PAT INR 67 crore, which has grown by 31% compared to INR 51 crore in Q2 FY 2024. So on quarter-to-quarter basis, Power Mech has demonstrated improvement in overall margin profile. EBITDA margin has gone up from 12.57% in Q2 FY 2024 to 12.78% in Q2 FY 2025. Net margin has gone up from 5.47%- 6.43%. So revenue mix for the quarter two FY 2025, mechanical business has contributed INR 229 crore against INR 148 crore in Q2 FY 2024, showing an increase of 10% growth. Civil business, including railway, water, distribution, contributed INR 395 crore against INR 496 crore in Q2 FY 2024, a decrease of 20%. O&M revenues are INR 391 crores against INR 272 crores in corresponding period last year, reaching a growth of 44%. Electrical business INR 9 crore against INR 17 crore, a decrease of 47% year-on-year. Mining business INR 12 crore against zero in Q2 FY 2024. Other income INR 10 crore against INR 5 crore in Q2 FY 2024. So during the quarter two FY 2025, the distribution between domestic business and international business is 95% and 5% respectively. Contribution from the power sector remained at 66%, and non-power contributed 34%. Similarly, the total reported income for six months of FY 2025 stands at INR 2,062 crores against INR 1,808 crores in H1 FY 2024, an increase of 14% year-on-year. EBITDA is INR 257 crores against INR 223 crores, a growth of 15%. PAT is INR 127 crores against INR 102 crores in H1 FY 2024, a growth of 24% year-on-year. On a half-year to half-year basis, Power Mech has demonstrated an improvement in overall margin profile. EBITDA margin has gone up from 12.31% in FY 2024 to 12.45% of H1 FY 2025. PAT margin has gone up from 5.66%- 6.17%. Mechanical business has contributed revenue mix for six months. Mechanical business has contributed INR 331 crores as against INR 258 crore in H1 FY 2024, showing an increase of 14%. Civil business, including railway, water, distribution, contributed INR 937 crores as against 989 crores, a shortfall of 5% growth, a shortfall of 5%. O&M revenues are INR 732 crore as against INR 524 crore in corresponding to the previous period, reaching growth of 40%. Electrical business INR 17 crore as against INR 25 crore, a decrease of 32%. Mining business INR 26 crore as against zero during the last year. Other income is INR 19 crore as against 10 crore during the last year. During off-year FY 2025, the distribution between domestic business and international business is 94% and 6% respectively. Contribution from the power sector mentioned at 60% and non-power contributed 40%. So the financial parameters are concerned. Net current days, excluding cash and cash equivalents, have increased from 142 days in Q1 to 147 days in Q2 due to delays in certification of the works and delays in realization of receivables from the water division, resulting in a small increase in the current assets of the company. The debt levels have been controlled. As of 30th September, the gross debt is around INR 611 crores, and the net debt stands at INR 64 crore. The debt equity ratio, as of 30th September 2024, stands at 0.34x. So now I request Mr. Ramaiah to update on the developments. Yeah, good afternoon, everybody. With Rohit and Aravind. My other colleagues here. Thanks to this call today. I think Rohit has given an overall picture of where the company is going in terms of the growth patterns and then the revenue side and also the opportunity side in future. Aravind has given the financial numbers. I think we should continue to be bullish on the market opportunity and availability of opportunities and also the bidding opportunities available. The overall order backlog, the beginning of the year was INR 17,362 crores. It has gone up to INR 18,402 crores in a space of nearly 6%. And the bulk of the booking has happened in the O&M side. That's a very positive sign. With the order backlog on the O&M, it was INR 2,197 crores at the beginning of the year. It has gone up to INR 356 crores, almost 51%. I think O&M is one of the key areas of our strength in the operations for top line, not only top line, but more importantly, the bottom line. That is a very positive sign. Of course, in the mechanical and civil, there is not the overall backlog remains overall is the same. And with the overall order booking, about INR 3,055 crores in the first two quarters. The domestic order backlog is around 98.7%. The international operations are 1.3%, mainly related to a lot of O&M jobs which we are pursuing in the Middle East and also West Africa. And the power sector order backlog is about 68%, and the non-power sector is about 32%. That shows very well that the power sector is driving the growth and the opportunities are available. Of course, now power sector is more comfortable. Non-power sector is the opportunities which we have entered in a big way in the last seven, eight years. That continues to be of importance to our growth strategy. But some of the key areas of the developments, I can say, to start with on the power sector, I think we all know the market is becoming very bullish with the influx of orders coming out. And obviously, this is linked with the huge demand gap which can happen between the coal power and also non-coal power. That is the renewable power which is expected to bring the widening of the gap by 2030-2032, leading to grid disturbance and also a lot of power outages. As a precaution, government has taken a lot of advanced actions in terms of ramping up the capacity of the coal-based plant to work as a backup on the baseload operation. That is why the flood of orders are coming out. We have seen in the last 10 months to one year, perhaps, beginning with Lara, where BHEL has taken the NTPC order, and then followed with the Talcher, Singrauli, then Talabira by NLC, Neyveli Lignite Corporation, Yamunanagar by HPGCL. Then a flood of orders from Adani side. Totally, Adani has ordered about 10,920 MW in the last couple of months, mainly on BHEL. Then NTPC has ordered about 11,580 MW. This I'm giving a background of one year. Then a lot of things have happened in the last couple of months and all. Then HPGCL, one unit of 800 MW. DVC at Koderma, two units of 1600 MW. Then NLC, Talabira, of course, a positive point which was low. Therefore, that shows the power sector, the ordering status has gone up to almost INR 128,000 crores for the BHEL itself. Therefore, BHEL is flooded with orders. And recently, the development is the bulk orders which they have L&T called for this one, Nabinagar, Gadarwara, and Telangana. Totally eight units. That L&T was L1, but as a part of the tender conditions, there was an opportunity available BHEL to bid in one of the projects. And they have taken the L1 that has already been confirmed now. That is Telangana project, around INR 1,600 crores. Therefore, overall ordering which has been done by all these customers, Adani, HPGCL, DVC, NLC, NTPC, for about 35 sets, comprising 27,300 MW, comes to almost INR 155,000 crores. Because about INR 27,523 crores is for L&T, which will be confirmed because they have been asked to go ahead with the working. And then BHEL, 128,000. For that, it indirectly translates to a huge opportunity base for us in terms of the ETC business, in terms of civil works, structural works, some of the Balance of Plant work in terms of coal handling facilities and Balance of Plant civil works. Then as more and more sets operate and all get to commissioning, O&M opportunities also will go up. On a ballpark basis and a rough calculation, what we have figured out is the opportunity size for the future is about in the power sector; it can go up to INR 30,000 crores, more than INR 30,000 crores in various areas of the installation, civil, structural, mechanical works, and then other areas also. Apart from that, there are BoP opportunities coming because NTPC has taken a principal stand to split the EPC overall bulky EPC of the entire plant in two areas, the main plant with the civil and structures in that area and the balance of plant. And for this balance of plant opportunities also will come up. And we are in the process of looking at the opportunities in some of the projects like Singrauli, which is coming up in Telangana. And then future when the NTPC comes out, we have to try with some of the partners how to bid for all those things. Of course, Telangana will aggressively pursue that opportunity. That has to come with the BHEL because it will be a BHEL being negotiated from the Telangana side. We have to see how it will take shape. Then there are other tenders also which have been called for the new EPC and other tenders like OPGCL, Odisha, then Ukai, Gujarat, then MPGCL, Amarkantak, MPGCL, Sarni, Singrauli, Telangana. That I have told you. Because NTPC has got a mandate to complete their portion of the ordering and also capacity addition to meet the need 2,000 by 2030-2032 by end of this decade. Therefore, that will be another 11,440 MW of the tendering process. Except 4,800 MW, most of the balanced tenders will be finalized by end of the year. It should be another six months should be possible. That will bring up another INR 20,000 crores of opportunities in the power sector segment itself. Now, on the plate, we have got about INR 24,000 crores of various opportunities being at the bidding stage and also already submitted in the power plant side, in the drinking water schemes. In various other non-power sector segments, that is where Rohit was confident of what is the future. Around INR 3,500 crores of things to be fortified in the next couple of months, two to three months maximum. We are still bullish on meeting the targets based on the opportunity size available with so many tenders which we have done the bidding, around INR 24,000 crores which is on our radar. For these are the major things, what we have to say. O&M, we have seen a significant improvement. In fact, the improved order backlog O&M by 50% at the beginning of the year to midway will bode well for improving the top line and more importantly for the bottom line. Some of the key things which have happened is a major project at Talwandi we have taken for 360 MW, 1,980 MW. That is about INR 951 crores. This is one of the largest O&M orders we have ever taken in the market. That was a five-year contract, and therefore, that is why this year the overall O&M order booking about nearly INR 1,860 crores, and that bids well for our future in the growth for the profitability also, and some more O&M projects are also expected in this year, apart from the other segments also, in the railways and then in the mining. I told you about the power sector and then other infrastructure side, and on a little bit of a major investments, I can just briefly tell. The steel sector, a lot of investment is going to come up. IISCO, Burnpur is coming with the investment of INR 30,000 crores for a 4.5 million ton capacity. There can be opportunities in the other side of the work on civil structural installation business. Bokaro also is expected to come up with the investments. Rourkela there is also a plan for expansion investments. There are opportunities in the Middle East also. JSW is planning to invest INR 30,000 crores in the 5 million ton capacity in Oman. We have got a presence in the Middle East also. Rohit is vigorously pursuing those things. Particularly, we have got a huge HR base also in handling dozens of projects in installation, then maintenance, operation maintenance, etc. We have got a background of working about 7,000 MW of common setup across the sector in the Middle East. That presence and experience would help us to see if more bigger investments come. We can also try to get in there. For this is on the overall perspective. Then the balance investment is to continue to flow in the railways. We expect another couple of years the flow will be there. It's a huge investment of around INR 2 lakh crores, road sector more than INR 2.5 lakh crores. Then drinking water, residual orders have to be completed now, perhaps under new AMRUT scheme or whatever it comes and all. These opportunities also will be available. And now the company is quite diversified, widely spread out. And then we have got the organization also built up. In fact, the present organization strength both direct and indirect labor has gone up by about 10% to meet the new businesses which have come, not only in the power sector but also in the O&M and other areas. That is what I would like to say in the start. Thank you very much. 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Omkar Chitnis from Trade Brains. Please go ahead. Good afternoon. My first question is, I want to know on MDO business because Geological Survey of India has identified several lithium ore sites. And the Indian government has plans to call a tender for lithium ore sites for coming years. So are we working on developing additional expertise in mining in comparison to the traditional mining operations in India and globally? Yeah. Thank you. Thanks for the question. So right now, our entire focus perhaps is to bring both of these mines to steady-state operations or peak-rated capacity, which is nine million metric tonnes per annum. And we expect to achieve this in 2028. And we are not looking at other mines at the moment, other MDOs or other coal blocks or mining in any other form. And lithium, we did some work on it. And so lithium requires a different skill set, different expertise to mine and extract. Okay, sir. Understood. And my second question is on expansion in global market, particularly U.S. In the case of Trump administration of first term, he emphasized more on infrastructure development and energy. Are we expecting same infrastructure development in the second term in the U.S. so that we can get more opportunities to enter U.S. market and any partnership are you planning in U.S.-based reforms? No, sir. No. Right now, we are not looking at U.S. as an expansion strategy, especially for our infra-business. Okay. Okay, sir. My last question is, earlier you guided a revenue growth of 25%-30% for FY 2025. What specific strategies have been implemented to achieve this target, particularly based on the current market conditions and competitions, sir? Sir, we have an opening order book of around INR 17,000 crores. And we have target of for the current year, we are planning to order inflow of around INR 12,000 crores apart from the MDO business. So we have a history of converting the opening order book of 35%-40% conversion into the turnover margin. So with that basis, we projected the revenue of 30% growth in the current year. So in 2023 also, we have achieved this 30% target from 2022 to 2023. So that is easily doable target. So we projected that 25%. We are content of achieving this number during the current FY 2025. Okay, sir. Thank you, sir. All the best for the coming quarter. Thank you. Thank you. Thank you. The next question is from the line of Pritesh Chheda from Lucky Investment Managers. Please go ahead. Sir, on the coal MDO side, I am seeing continuous delay in the project in terms of execution. So now both these projects, where exactly are they? And And for your peak run rates, so how close are you now to generate those peak run rates? Or what will be your revenue and price of the two projects combined in FY 2025 and 2026? Yeah. Yes. The first mine with Central Coalfields Limited, which is a five million metric tonnes per annum one, which we named as Kotre Basantpur, there is a slight delay. There was a delay of four months, I think, because initially there were central elections and now state elections. But right now, we are in a position this week we have mobilized our resources and we are expecting to start our work any moment. We are just waiting for the last clearance to be obtained, which shall be obtained anytime soon. And this mine, initially we expected to do around INR 50 crores of revenue this year, sir. So even if we start supplying the first batch of coal in the month of January, if we start extracting overburden in the month of December, which we expect to do by December 1st or 2nd after the pre-filling activity is done. So we are on track to doing INR 50 crores in this mine. So next year's plan is to increase the capacity to 400,000 tonnes, and this is also contractual capacity. And when we do 400,000 metric tonnes, we'll do a revenue of INR 300-310 crores, depending on price variation. And this mine is expected to reach PRC, peak-rated capacity by 2028. So we'll peak in revenues in 2028. And the second mine, which is named as Kalyaneshwari Tasra Mine, which is a SAIL mine, we have already started extracting coal. And we have extracted 380,000 metric tonnes till date from February 2024 to October 31st. And this trend is only going to increase going forward. And we are, again, SAIL. As we are in terms of washing capacity, we are running a little short because SAIL doesn't have complete offtake of this resource that we are able to extract. But the situation is going to improve from January, February onwards. And we were able to achieve only INR 30 crores until Q2. But the next two quarters, there's going to be a significant increase in revenue numbers in this mine. It may touch INR 150 crores-INR 160 crores. And this mine, again, is expected to achieve PRC, peak-rated capacity by middle of 2027-2028. That's when our washeries will also be constructed and we'll start obtaining the full mining fee. Is 160 crores you mentioned is similar or H2 for steel? No, H2. H2. I I think it's already 28. So it is 160 plus 28. So for full year, it will be 188? Yes, sir. Yes. Okay. Can you tell us the PAT number for the Coal India mine next year at INR 300 crores revenue? Initially, next year, because the PAT is going to be a little less, until we achieve PRC, it's more so investments that we have to pull in from our side. So it'll hover in the range of 6%-7%. But once we achieve PRC, the PAT is going to improve significantly, substantially all the way up to 12%-13%. So you will achieve the peak-rated in Coal India mine in FY 2028, right? And you will achieve the peak-rated in steel mine in FY 2027? Yeah. Middle towards the end of FY 2027 or middle of FY 2028. Okay. And this 25% revenue guidance that you give, you give that with the FY 2025 will be without coal numbers or with the coal MDO numbers? With including coal MDO numbers. Including? Yeah. INR 5,500 crores including coal numbers. Okay. Okay, sir. Thank you. Thank you. Thank you. The next question is from the line of Sandeep Dixit from Arjav Partners. Please go ahead. Thank you, sir. Just a couple of questions. So sir, on this guidance of INR 5,500 crores in the current year, so if I just note the numbers, we are looking at a 40% revenue growth in the second half. Am I right in my calculations? Yes. Yes. Where is this growth coming from? I mean. So the FGD, we have done around INR 52 crores during the Q2. And the remaining are the new orders we received from various Mahan and Athena new projects. O&M. We received new projects we received during the last year. Last year, new orders we received from the various projects. And we give it as revenue. INR 1,860 crores. INR 1,860 crores. Yeah. So basically, the takeaway I'm taking away is that you have very high availability on this INR 5,500 crores number. Chances of disappointment are extremely low. Am I right? Yes. Okay. Sir, second question was on the mining operations. You mentioned in the previous answer that the margins will be 6%-7% until you reach peak capacity, peak-rated capacity. PAT margin. It's a PAT margin, not an EBITDA margin. Not EBITDA. It's PAT. Okay. So at... Okay. Fantastic. Thank you. What will be the EBITDA margin in that case? EBITDA blended will be PRC. When we achieve PRC, it will be blended EBITDA of both the mines together will be around 20%-22%. Yeah. I think you had mentioned that in earlier calls. Thank you very much, sir. Thank you. Thanks. Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. The next question is from the line of Anand from Mount Intra Finance. Please go ahead. I just have one question. The inflow is INR 3,055 crores. However, it is a revised order you have included for. Am I right in my calculation or...? Sir, your voice, we are unable to get you. Can you...? Hi. Can you hear me now? Yes. Little better. Yes. Yes. So if the order includes, I read INR 3,055 crores for up till H1 2025. However, I see there's a revised order of INR 592.99 crores from Uttarakhand Pey Jal Nigam Limited. Is that also included in the current order book? Which project you are referring, sir? Which order? A particular order, INR 592 crores from Uttarakhand Pey Jal Nigam Limited. You disclosed it on 22nd July 2024. So this seems to be a revised order. And as per my calculation, this is... Yeah. INR 230 crores revised order is there. So that is also included. Yeah. Yeah. So Yeah. So essentially, there's a double counting, right? Because this order was received in April 2023. No. My opening, I have taken only the difference value of 230. The change of scope value only I have considered in the present orders. Okay. Okay. Thank you. Thank you. Ladies and gentlemen, you may press star and one if you wish to ask questions. We have the next question from the line of Pratik Shah from Nirmal Bang Equities. Please go ahead. Thank you, sir. Thank you for the opportunity. I'm audible? Yes, sir. Yes, Pratik. Yeah. Sir, my first question was regarding to the recent slowdown in the steel sector for the last three to six months. Have you received any order booking from JSPL that you were expecting, or we are expecting any delays in the CapEx? Yeah. I think this scope one could be taking shape. Actually, they are first focusing on the supply orders because supply, we had some discussions with some of the Asian companies also. Of course, their qualification issues are there. But the construction and the construction partner contracts will follow another four to five months. Maybe to follow up. And there can be a lot of opportunities about nearly INR 4,000 crores-5,000 crores. Of course, we have to see which are the projects, which are the packages of importance to us there. But these investments are on the firm footing. I think IISCO is taken on a firm footing. Then Rourkela also will come up. Rourkela, they are going to expand their material handling and other sites also. Then Bokaro, we have to see. Of course, overall outlook is that steel wants to develop the capacity from 25 million tonnes- 50 million tonnes, something like that. And that is there. Therefore, and then JSPL, what I told about Oman is a firm investment they have committed under Vulcan Green Steel, fully invested to be done by the JSPL. And we can take a call based on the opportunity and also what is the type of work that will be available, which can be doable by us. Of course, we have got a reference. I I haven't done the work in steel plants in Dolvi, Ballari, and JSPL Angul. And with those references, we can make a try. Okay. Got it, sir. My second question was for the CapEx for Power Mech for 25 and 26. Could you give any guidance on that? To meet our regular revenue growth targets, we are increasing the CapEx for normal assets of around INR 100 crore CapEx increase we are expecting, sir. Apart from that, we received the washery environmental clearance approval. So there is a requirement of INR 690 crores overall CapEx plan for the washery setup for Tasra project. So over a period of next two to one and a half, two years' time, we incur this INR 690 crores overall CapEx in our books. Okay. So that was helpful, sir. That's it from my side. Thank you. Ladies and gentlemen, you may press star and one to ask a question. We have the next question from the line of Manthan Jhaveri from Nexus Securities. Please go ahead. Am I audible? Yes, you're audible, sir. So my question was regarding the order inflow. So we are guiding as of now between INR 11,000 crores-I NR 12,000 crores of order inflow. And as of now, till date, we have received order inflows of just INR 3,000 crores. So what gives us confidence of achieving that in H2 or remaining seven months of this calendar year? Yeah. Are we seeing any large orders? Yeah. INR 24,000 crores of this one, opportunities are on the track. It is a combination of power plant side, then the non-power sector, the infrastructure side, then metro side, drinking water schemes, etc. Around 3,500 tonnes are on the firm side which will happen in the next one or two months. And then the other things also should come up. And actually, in the power sector also, about the new flood of orders should come up because all these ordering has been done by Adani. They are making a lot of inquiries. They are interested in our partnership and all. And we are working in Mahan. And the new projects in Raipur, Raigarh, Mirzapur, and also Kawai. All these projects will definitely come up shortly because they will take a faster decision. And then BHEL, with the total order booking on the power sector itself, about nearly INR 128,000 crores, they also have to do a lot of fast tracking in the ordering also. Therefore, there also, it's expected. Therefore, what happened in the first two quarters, there was some slackness mainly because of the elections, the main elections, and then the state elections and all. But at third and fourth quarter things, last year also similar thing happened. The order was improved in the third and fourth quarter. And looking at the opportunities is only we are still confident of those numbers. Fair enough, sir. Sir, on the MDO side, what can the expected revenues at peak capacity in FY 2028 from both the mines? INR 2,100 crores, sir. And these could be achievable in FY 2028 from both the mines? Yes. Okay. And the other thing was regarding the Adani FGD orders. So are the FGD orders still slow moving, or is there any traction reinstated? No. As of today, it is going on. Nothing because we all know it is sub judice, matter is sub judice. There are certain views expressed by different segments of the government also. Ultimately, the call has to be taken by the Supreme Court. But what we can say is that NTPC has taken a firm decision to implement 58,000 MW of FGD implementation. Therefore, there is a background of that. And we are doing Udupi project of INR 963 crores. That INR 300 crores of conversion should happen in this year. Therefore, till anything has to come very firmly from the judicial side, we will take it that these things will stand. I think there is a lot of sensitivity attached to this aspect of the environmental issues. Therefore, Supreme Court also will take a very measured decision on that. Until then, we don't want to make any use and accept that we will be proceeding with whatever things are available. Okay. Hello? It is to some extent, yes, it is slow moving because of the ambiguity of facts with the Supreme Court judgment waiting and also some of the recommendations made by some of the government agencies. Okay. Of the Adani FGD order of INR 6,000 crores, which was approximately INR 6,000 crores, how much execution has been done? Right now, we are operating only Udupi projects, sir. We have done roughly around INR 180 crore worth of work we have executed. And we are in INR 200 crores. Yeah, roughly INR 200 crores worth of works we have executed, sir. Okay. So this order book of currently INR 17,000 crores, how much will be the FGD of this component? If you keep aside the Udupi project, which is running, the balance INR 4,200 crores is the other orders out there, sir. Kawai is around the other project. Yeah. Okay. So out of INR 18,000 crores, INR 4,200 crores is all these other slow moving projects. Without FGD, there is around INR 14,000 crores orders are available. Okay. And INR 14,000 crores, if we end FY 2025 at approximately 15,000 crores or 16,000 crores, net of slow moving, and we expect 30% or 40% of conversion of these orders in FY 2025. Is that correct? Yes. Ad dition of the new year, the target of INR 11,000 crores addition will be there for the current year. Okay. Okay. Then out of INR 3,000 crores only we received, so another INR 9,000 crores we are projecting the current year received. Okay. Fair enough. Thanks. Thanks a lot, sir. Thank you. The next question is from the line of Tanay Rasal from Nomura. Please go ahead. Hi, sir. Am I audible? You are audible. You may proceed. Yeah. Sir, thank you for the opportunity. So my question was relating to the thermal power plant that was being tendered out by NTPC yesterday. So those three power plants are worth around INR 80,000 crores. So what will be our scope of work and what is the opportunity size for those projects? I will again do what I have touched upon in the beginning. To be brief on that, the order flow which has come on VHL and L&T together is about nearly INR 155,000 crores in the last one year. And L&T, they asked to proceed with about 4,000 MW for Nabinagar and Gadarwara, INR 27,523 crores. And VHL also, today the new headline has come also about the Telangana job of INR 16,000 crores also because they had an opportunity to match the L1 price. Even though in all the three areas, in all the three this one, plants, L&T was the L1, based on the tender conditions, VHL is getting that of another order of INR 16,000 crores on Telangana. That is boosting up theirs of this one. For in this, there are segments of the opportunities on the ETC business, that is the installation business of the main plant equipment, and then the civil and structural works. Then some of the balance of plant works in terms of wherever you can take coal handling and other areas and balance of plant civil work. Apart from that, that itself comes under about INR 30,000 crores of opportunity. Apart from that, what BHEL and this Adani has to do is that the Adani has only placed the order on the main plant. That is the BTG for about 14,000 MW, 10,900 MW. Now, all these plants for facilitating the completion of the main plant, they have to order the balance of plant works. There are a lot of other miscellaneous works like coal handling, material handling, then ash handling, then water systems and all. Those will also come for tendering. We have to see where we can fit in. But NTPC also precisely also for this 6,400 MW, which they are now almost everything is in the pipeline for both BHEL and L&T, this also balance of plant, they have to tender it out. That they cannot delay it. That also comes as an opportunity. That's why, and more than that, I told you, another 14,000 MW, sorry, 11,440 MW tendering is in the pipeline that has to happen. Therefore, the next two to three years, two years at least, there will be a lot of flow expected on the power sector business. Okay. Sir, thank you for this, sir. But what is about timeline? When BTG is tendered out, so when is the balance of plant usually gets tendered out to you? Any timeline you can? Balance of plant, they should be doing it because they cannot delay it. In a couple of months, it should happen. Because already, they would have done the documentation. Maybe they have to call the tenders and what packaging they will do, whether a single package or a multiple package that has to be seen by NTPC. In the case of Adani, they have got enough capabilities to do package-wise tendering in terms of various areas like mechanical, electrical, and then civil packages and structural packages. That also, they will be starting it on those areas. Okay. Thank you, sir. Thank you, sir. Yeah. That's it from my side. Thank you. The next question is from the line of Sunil Kothari from Unique PMS. Please go ahead. Thank you, sir, for the opportunity. I'm a little new to the company. So, sir, would you like to talk something more about since the opportunity is very huge, maybe in a year or two, it will accelerate for the next four or five years? So which are the areas where you feel you require to strengthen your inside capability in terms of management team, equipment, CapEx? Where are you feel you require to create more capability? Yeah. Thank you. Thanks for the question. I feel we are working towards increasing capability in the civil space, especially because it's relatively compared to what our core activities in the power sector, especially mechanical works that the company was founded on. So civil works is what we think we have to, and we are working on it. We have been enhancing our teams, especially at the leadership level and also at the ground level execution teams. We are also gearing up to adding more engineering capability within the organization. So to take up more engineering procurement and construction contracts, not an entire power plant like Ramaiah sir and I had touched upon earlier, parts of a power plant where we think we can build on our 25 years of experience. Like BOP is something that we thought we could do. So we are trying to build some engineering expertise for the next 5-10 years to be able to cater to a decent amount of BOP EPC jobs. Naturally, I think O&M, we are making a good stride in the O&M space, operation maintenance of power plants. But we feel there's still a lot to do in terms of skill enhancement and the kind of power plant, thermal power plants, especially that are going to come up over the next five years to 10 years. So we need to be ready with numbers here. More than quality or skills, we need to be ready with number of people because the last 10 years have seen a lot of people not join this sector. It's a dearth of talent. Yeah, and something you can talk about, just covering your vast experience of the past and the industry, which made a lot of mistakes and got so much in trouble, so what has changed? What precaution we are taking that we do not make mistakes? Or even if there is something wrong, we can come out maybe a little with a little injury? Because ultimately, infrastructure and related all these things, sometimes over time, it creates a very challenging environment in terms of competition, in terms of payment, in terms of project stalling and all things. So how prepared and ready we are with our past experience that we will not make mistakes and will take care for the future? I think, as Rohit has said, we are a 25-year-old company. A lot of learning has gone into the system, and perhaps on the O&M sector, perhaps we are the front side. We are the leaders in doing the things, and we are not keeping quiet with that. We are trying to strengthen the organization setup and the quality and the skills of the people. That is where the evolution comes there, but in the overall perspective, particularly in the normal installation job, there is a bit of a challenge. The routine job, but a lot of work is required in terms of proper resource planning or planning and project management systems have to always be on track. Of course, we have got a very robust system on that. Perhaps it is front-led by Kishore Babu himself many times. He goes to the sites and sees the problem-solving approach, and Rohit also is doing the same thing. We have got a lot of leaders in different segments. We have got 10 SVPs, for example, within various segments, and all were specialized in various areas. That specialization is being strengthened in terms of engineering procurement also with some of the new blood we have taken with a lot of experience, but from the customer side, the major issues are fixing the overall scope definition of the project. That is a very big task. Particularly, the standard packages and power plants, there is no bigger challenge. Like Adani is doing a very routine thing because they are quite used to it. NTPC is quite used to it. BHEL, the problem with BHEL maybe working capital issues can be there. Otherwise, they have got huge capacities, 15,000 MW capacities. They have got a lot of quality people. Everything is there. Only thing, the supply chain and then working capital, that is where this type of project can have some issues here and there. And more or less, in most of the sites, the problem what happens, we have seen many of the projects are delayed due to access issues because the land is not fully available. There are other statutory clearances are not taken. Forest clearances are not there. Right of way is not there. Then these are the things when you have interfaced. When the project starts with a clean slate, then the project will go faster. But when a project is taken with 50% land and 50% progress with the acquired, then the problem starts. Then the whole thing gets a little bit of an issue into that delays and all those things. The proper integration of engineering, supply chain, manufacturing, and more importantly, the construction, which is our specialization, that has to be integrated. Ultimately, customer has to do or developer has to do their duty into that. But we are much better doing things better. I don't think those days are gone where projects will take so much of delay. Power plants are being put up in three years now. It is not such a challenge. Three to four years, it is being put up. And then even railway jobs and then road projects are also coming very faster. We are also experiencing that. We have done many of the road projects and the railway jobs. We are doing over 24 railway jobs. A lot of learning is there, and it is doable. Therefore, the challenge comes when we do with the engineering, supply chain side. That is where a lot of care is required. A lot of working capital managers are required. A lot of pushing around the engineering and supply procurement and execution has to be properly interfaced. And the same thing goes up also in the customer side also. They have to do ordering in time. They have to get the access into site. Then they have to finalize their engineering specifications, tender specifications in time. All these things are standard practice which has to be followed. But sometimes there are some delays that we have to make it up somehow. Great, sir. Just last question. How do you see competitive scenario happening or changing now? You mean to say our area of the business? Yes, sir. No, I will tell you two, three areas. Perhaps in the power sector, we have no peers now. I can boldly say that because of the strength we have established. In fact, today, the capacities what we built up in supervision, engineering, engineering people, site execution, and then supply chain in terms of the labor, piece-rate workers, we can say around 15,000-16,000 people are deployed on the various sites for the labor itself. That shows the strength of the organization. Perhaps very few organizations have got those capabilities. Therefore, that drives us into the front compared to the others, particularly with the private customers like Adani. Even BHEL also doesn't feel that they have got such a big competition because now so much of tendering has to be done. Nearly about 23,000 MW they have got on their plate. And their capacity is 15,000 MW on paper. Of course, over the years, because of the lack of interest in the power sector, the annual capacity has come down to 3,200 MW per year. Now they have to ramp up to 8,000-10,000 MW, then 12,000-14,000 MW in the next 3-4 years. Then only these 80,000 MW can be achieved by the end of the decade. Therefore, these are the areas they have to everybody has to hop in and get across their act. Yes, sir. Thanks a lot for very detailed answer. Thank you very much. T hank you. The next question is from the line of Manthan Jhaveri from Nexus Securities. Please go ahead. Hello. You are audible, sir. Please go ahead. Yes. Sir, so on the revenue order, you said that INR 2,100 crores will be the peak revenue from FY 2028. So from FY 2028 onward, is INR 2,100 crores will be recurring revenue for every year? Or is there some different calculations from FY 2028? Yes, sir. It's going to be an annual recurring revenue for the next 25 years, excluding the price variation. So you include yeah, excluding changes. Okay. So approximately INR 2,000 crores will be recurring revenue for the 25 years from this mines. And this won't be related to offtake? Or? No, it won't be for 25 years. I'm sorry. It's going to be for 23 years because we use it for development. Yes. You can use it for development. Yes. Sir, as our order book is gaining traction in O&M side, and you also mentioned that O&M has relatively higher margins than our other segments. So is there any scope of further improvement in margins? We have been concerned around this 11%-12% band. So is there any further scope of improvement since our O&M order book is improving? Yes, sir. There is a possibility because the moment we increase our O&M segment and MDO segment added to the portfolio, there will be an expectation of 1%-1.5% growth in EBITDA ma rgin over a period of next three to four years. And overseas is also contributing quite significantly to our O&M revenues. Last year, we did overseas O&M of around INR 200 crores, and this year we anticipate to do INR 235 crores-240 crores. So you can expect to see the same trend over the next 7- 8 years. Overseas O&M growing at a rate of 30%-35% CAGR. And EBITDA margins are in the range of 17%-19% in the overseas O&M. So overseas O&M is 17%-19%, you are saying? Yes. So can we expect improvement in H2 of FY 2025 in EBITDA margins? Yes, sir. Because the turnout will be more in H2. So O&M also new projects we added during Q2. So there is a chance of getting more margins in O&M side. So we may get more margin improvement in the up coming years. One more thing. The new installation jobs which is coming up in the boiler and turbine packages, the realization of the rate per ton is better than the previous years. That can also bring some better margins. Okay. And sir, since we have operated here, operating with these two large MDO orders, so in terms of capability and operational capabilities, is this somewhere hampering our dealings in other lines of business, or it's not affected in terms of manpower and everything? So these two MDOs were operating under separate SPVs, sir. So there is separate manpower handled by the separate team. So the Power Mech team is only supervising as a promoter. We are monitoring the operations of the SPVs. So there is no impact on the mining operations on the existing MDOs. Thank you. Thank you. you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Ms. Natasha Jain for closing comments. Over to you, ma'am. Ms. Natasha Jain, you are not audible. Am I audible now? Yes, you are audible now. Please go ahead. Yeah. Thank you. I would now request the management to give closing remarks, if any. Yeah. I think we have touched upon many aspects of the business growth, the opportunity size available, the revenue growth, and the EBITDA margins which will be further strengthened in the coming months and all. What we can say is that the investment climate is pretty good in the power sector, in the non-power sector, railways, infrastructure, and then other segments also. Therefore, the company continues to be bullish on its growth path. INR 4,200 crores last year, and we should touch upon INR 5,000 crores around that, a little bit more. In the last two quarters, already revenues have been more. And Rohit has given a broad spectrum of the order flow expected. And I think that the opportunities available, we should try to get whatever is possible. And then the opportunities available will be more in the coming years if the government is fully committed for more and more investments in the energy sector, infrastructure sector, and then so many other sectors, and then steel sector also. Therefore, we have to see where all the and then green hydrogen, which Rohit has touched upon. Therefore, there are new segments also coming up. And then we keep focusing on new segments. That is one of the USPs of Power Mech. We will always look for new opportunities. And that is all our work should be focused on. Thank you very much. Thank you, sir. That concludes the conference. Participants can now disconnect their lines. Thank you. Thank you. On behalf of Nirmal Bang Institutional Equities, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.