HGINFRA

[Regulatory cover note] February 09, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai- 400 001 Mumbai- 400 051 Scrip Code- 541019/ 973671 Scrip Symbol- HGINFRA Dear Sir/Madam, Sub: Earnings Conference Call Audio Recording for Q3 & 9MFY23 Pursuant to Regulation 30 read with Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find below the link for the audio recording of the earnings conference call made on February 09, 2023 on un-audited financial results (Consolidated and Standalone) of the Company for the quarter and nine months ended December 31, 2022. The same is available on the Company’s website at: hginfra.com/earnings_call/q3_9mfy23_earnings_call_audio_transcripts.mp3 This is for your information and appropriate dissemination. Thanking you, Yours faithfully, For H.G. Infra Engineering Limited Ankita Mehra Company Secretary & Compliance Officer ICSI. M. No-A33288 [Investor-call recording transcript] Ladies and gentlemen, good day and welcome to the HG-INFRA Engineering Q3-FI-23 earnings conference call hosted by Go India advisors. 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 the conference call, please signal an operator by pressing stand and zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Priya Sen from Go India advisors. Thank you and over to you Ms. Priya Sen. Thank you Vivian. Good afternoon everybody and welcome to HG-INFRA Engineering Limited earnings call to discuss Q3 and 9 months FI-23 results. We have on the call the Harindra Singh Chairman and Managing Director, Mr. Arjun Khandelwal President's capacity and Mr. Rajiv Mishra Chief Executive. We must remind you that the discussion on the today's call may include certain forward-looking states and must be therefore viewed in conjunction with the visits that the company faces. May I now request Mr. Harindra Singh to take us through the company's business outlook and performance subsequent to which we will open the floor for Q&A. Thank you and over to you sir. Thank you Priya. Good afternoon ladies and gentlemen. Thank you all for joining us on the Q3 and 9 months FI-23 earnings call today. I hope you are all doing well. Since our inception, we have placed a strong emphasis on our bottom line by selecting high quality projects. We are a symbol of trust for all our MSWI clients. To build a sizable order book, we are eventlessly working to think beyond low segments and diversify our business by showcasing our strengths. With the addition of the new DMRC project to our order book, we are boasting our presence in other segments in order to maximize value creation for all our stakeholders. As you can see from our earnings presentation, which are only uploaded on the website, and as far as change, our company has yet another strong quarter demonstrating exceptional results. Before I talk about the quarter results, let me give you some updates on the infrastructure first. This year's union budget prioritized infrastructure boasting overall capital outlay by 33% to receive 7 lakh crores from these 7.5 lakh crores. Talking about the roads, most were allocated from 2.7 lakh crores in the union budget which is up 35% from 1.99 lakh crores. The budget envisaged an expansion of 25,000 km in the highway network in the current fiscal year. A significant amount of fees is offered by the NHRI's robust pipeline of 4,500 km of projects, totaling rupees 1,144 billion in other vendors. Given our strong pipeline execution skills and our healthy balance sheet, we are confident that the central pipeline will result in significant order inflows for the company in the coming months. Followed by railways which have received the highest ever capital outlay till date of rupees 2.4 lakh crores. The capital expenditure is expected to be expended on a variety of critical projects, including multi-modal stations and high-speed networks. Also, modern segment is the focus area of this budget under the German vision. In various states, the plastic project of central has been allocated 69,684 crores and that is again an increase of 27% over the last year. This year, airport, the union budget includes 50 more airports, heliports, waterways, etc. and advanced landfields that could be reactivated in order to increase the regional aviation connectivity. With such a great impetus on infrastructure, we 40 tremendous growth opportunities enabling us in diversifying our order books and entering into new segments. Now, let me start with the quarterly financial performance of the company. Quarterly stated on a positive note with a strong economic activity, this is a quarter with a higher level of capital outlay of rupees 1131 crores at that of the parallel level, as compared to the revenue of the corresponding period of last quarter at about 922 crores. The return during the quarter was rupees 189 crores and a return margin stood at 16.7% in Q3 of about 23. There is an upward trend seen in the return margin due to reduction in the cost of materials consumed by 25.2% and the receipt of bonus of rupees 15.95 crores. The profit before that for Q3 of about 23 was rupees 151 crores versus that of Q3 of about 22 at rupees 120 crores. That grew to rupees 111 crores in Q3 of about 23 versus rupees 89 crores in Q3 of about 22, showing a growth of 25.3% on a year-on-year basis. Coming to nine-month financial performance, coming along several basis our overall revenue of nine months of about 23 was 2,949 crores, showing an increase of 13.9% year-on-year from rupees 2,589 crores in nine months and points of about 22. A beta was rupees 476 crores in comparison to rupees 428 crores during the same period last year, showing a growth of 10.4% on year-on-year basis. In nine months FY23, the beta margin was 16.16%. That margin for nine months FY23 was 9.3%, while the profit after tax for the nine months was rupees 274 crores as opposed to rupees 247 crores for the same period last year. On our seven-month basis, our gross debt as on 31st December 2022 was 477 crores. This includes our estimated debt with growth limit of rupees 81.9 crores, term loans and current securities of 389.48 crores, and including the NCD of 97 crores. At the competitive level, our gross debt was rupees 1,589.75 crores, which comprises project debt of rupees 1,118.29 crores. Some of the significant operational highlights on our prominent projects are as follows. I am pleased to share that we have received, we have been declared N1 bidder and received of LOA by NHI's higher project worth 997 crores. It is a six-link greenfield canal railroad project in the state of Haryana. The company has also diversified its order book in the railway and metro segment. Having projects awarded by Delhi Metro, we have received one of the, one of our first metro projects worth rupees 412 crores including of GST, which is in line with the company's objective to diversify its order book portfolio. As of December 31st, our entire foot pipeline of the early executed orders totaled rupees 11,064 crores. We are present in nine different states and our order book is very diversified, including 51% of our EPC projects and 39% hand projects. Coming to the progress of the major EPC projects, our progress is as follows. With regard to the BV packages, that is package number A, we have made a significant progress in this and have completed around 93.6% financially. The project is on its end date to be finished this February and we have already applied for the COD. For delivery of package 9, our completion status stands at 86% financially, which is aligned with our completion target in this quarter. In the Manchurian project of Adani, the completion status is 81.87%, that is financial. We have received PCOE for this project in December 2022 and the entire project is expected to be completed in Q4, except for certain QS works. In the verbal extension mode of daily projects, that is Garala Hanjawala, we have finished 79.9% of the job, which is progressing according to our schedule timeline. In the Ranga Express project of Adani, we have executed 4.9% of the work and the execution is still in full swing in this project. In the Neel Manjulath Manchur project, the completion status is at 4.8%. Moving on to the HAN projects, which are under execution, which are also progressing well as per the schedule timeline. In the Rehwari Baipath HAN project, about 87% of the project is completed. We are expected to get the provision completion target for this year. In Raipur Mishraga Padnam Kauri Rao project of 81, the completion status stands at 24.3%, which is right on schedule time. Further to the two HAN projects of Raipur Mishraga Padnam, that is OVSA, OD package 5 and 6, we have accomplished about 19.1% and 23.7% of the project respectively. And they are again moving on right on track. In Haman Deora Haldi package 1 and 2, which we have started recently, project execution stands at 6% and 9% respectively. For all the HAN projects, the total equity requirement anticipated till FY 25, stood at Rs.1,273 crores. That includes the equity requirement of recently awarded Kardam Ring Road project. Out of this, an investment of 720.3 crores as of December 22 has already been made and a projection to invest 38.4 crores is activated in the remaining financial year, that is FY 23. We would like to update the forum that on monetization of four HAN projects, it is at an advanced stage. With the technical due diligence of these projects, we are hopeful that we should be able to sign the documents formally to conclude this deal shortly, subject to our expected valuation and the satisfactory conduct of due diligence. Other significant developments at the organization level are as follows. We received a bonus of Rs.15.95 crores in December 22. From NHUAE, that is for a Rehwari Achari Mandi Nahdol project and another 4 crore bonus is in the approval stage. We are also anticipating to receive a bonus of about 4.5 crores for the Rehwari Achari Mandi project during Q4. Now, guidance on the bidding outlook at the business authorities. We are highly optimistic about the sector's outlook at the authorities for the forthcoming year. The government's focus on infrastructure is evident from the current budget. Given that we will be entering the election year soon, we expect the focus on orderings to fix strongly. At HGE, we have laid the groundwork for our phase of expansion. The three main areas of our focus are operational efficiency and effectiveness, cost supplementation and timely completion of the project. We are anticipating Rs.3000 to Rs.4000 crores order before March to maintain the order book which will result in 2.5 times the revenue. Furthermore, we have submitted bids for project totaling Rs.80,000. We will be submitting, sorry, we will be submitting the bids for project totaling Rs.80,000 crores of which Rs.4000 crores pertaining to railway, Rs.2,000 crores from water projects, Rs.1,500 crores of metro and some Rs.73,000 crores in the highway projects. The opening of some of the tenders is still pending which are in the tune of more Rs.15,000 crores. Together the diversification of companies' portfolio is well underway. As we have reached the top line of Rs.2,950 crores in December 2022, we are hopeful that we will be achieving the growth of 22 to 25% in comparison to the last year's revenue to endorse our guided numbers. Now I would like the moderator to open the floor for the question also. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Participants who wish to ask a question may kindly press star 1 on your desktop telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. This question is from the line of Mohit Kumar from Dam Capital, kindly proceed. Yeah, good afternoon sir and congratulations on another good quarter. My first question is on the revenue guidance, you said 25% for FY23. Given that the last year base was 10 billion, this implies on 50% growth, is that achievable in the Q4? So what you are looking at, since we are looking at about the 25% which comes around 4500, so this quarter 4 has to be where we need to run at about say 1.5 tons of the earlier quarter last year. Yeah sure, with all the projects execution and whatever you can see about the monsoon times and any of the winter times, they are now gone, we are running at about say almost 20 crores a day in many of the projects using that particular number. So we believe that 100% we will be achieving the target. Big pipeline, especially for NHCI, I think they are very muted last 9 months. Do you think the Q4, there is a star should pick up based on whatever you have? Yeah for sure, I think for the first half of this year nothing much has happened, as per the billing and many of the contractual agreements, corrections, modifications were going on. Now you see in December and now in the current 3 months, so around 78000 crores which we also are looking to build up, and they are more than 1 lakh crores of projects which are at the centre stage. And how does the Ganges space say, you know, the execution especially in FY24, there is a partial part will happen in FY24, in the sense 50% of this order book will get executed in the fiscal year? Sorry, I couldn't get your question clearly. My question also on the Ganges space say, will that 50% of the execution happen in FY24, is that a fair assumption? Yeah for sure, because the 27 months duration project will be started in November, so that we need to complete by March sometime by February 2025, so 50% of the execution will be coming in FY24 from the Ganges space. Thank you. Thank you. Participants wish to ask a question, kindly press star 1. Next question is from the line of Shravan Shah from Dalit Capital, can we proceed? Yeah, thank you. Congratulations for the good set of numbers and the highest ever revenue bid and packed in our single quarter. So, just wanted to understand slightly more in detail in the sense that, now we are saying slightly reduce our revenue guidance for this year to 4,500 crore from last 4,600. So, is it possible that by year and we may see even 4,400 crore, so ideally from the original 5,000 to now coming to 4,600 and then now we are seeing 4,500 and also in terms of the FY24, last time we said 5,800 to 6,000. So, how are now the new guidance? Look, I think for this year the correction has been because of the few delays in the appointed date and ideally we are also going to expect that the schedule was anticipated to be started by July and there the shortfall is clearly visible because of that for 5,000 to 4,600. We still are in that confidence that we would be reaching that number of early being guided with 4,600 but we are keeping it well within the achieveable target as 100% is worth 4,500. So, the reason behind that was 3,400 to 4,800 was the big reason for the 3 projects and we already discussed last quarter. Now, coming to the FY24, if you see the total orders which we need to deliver or execute in FY24, whatever was not possible during this year would be added to the next year. So, we are keeping our guidance from about 32 to 25% which earlier was not that number for the year over year. So, which always the 5,600, 5,500 is already achieved. Okay, okay and in terms of the margin more than 16%, even if there is no bonus that is achievable. Yeah, we are having all our projects which are having varying margins and they are everywhere. So, we do not see much of the challenge as far as getting the 16% margin. Okay, so and in terms of couple of things just to clarify, the total equity with the new kernel ring road, you stated 1237 crores, what is the requirement? The total equity requirement is now 38.4 crores. So, what we earlier mentioned is 108 crore rupees, now we are considering 150 crores added to that. Okay and fourth quarter you mentioned 38.4 crores, so in 24 and 25 how much have to be added? It is coming around 325 and 170 crore rupees. So, it is FY24, FY25 and 60. 325 and? 120. 170. Yeah, it is something to that 73 crore already invested in the system. So, the balance number is 176 crore rupees, it is being stated in 38.5 here, then coming forward by 327 or rather 327 in 24 and 25 in 171. Okay. So, the answer in question 1270 crore was total investment, out of that 177.20 crore has already been invested. To balance 550 crores only to be invested in them is 27 months. Yeah, I have got the point. Sir, we need a couple of balance sheet data points. So, before the date though it has increased by 79 crores, by year end will it come back to again 440 crores? Yeah, for sure this has been a great increase, because see we initially also given that the effect addition, which was the key trigger for this particular potential year, which only in 5 years back we all invested around 250 crore rupees in 2018. So, this year the major effects has been added. So, because of that it is 108 crores of debt being added during this quarter, this quarter only. So, the selling plans are to be fixed, which are about to be sold. So, they are all on cards and we would be 21 crore rupees, crores of equipment would be sold, sold in this particular, we would be studying in this particular quarter. And then again if you see to the number, which would be coming down to about 2425 by the end of this year. Okay, so the data point I need is inventory, trade receivable, trade payable, retention money, unbilled revenue, mobilization advance. So, the borrowing rate you have already seen, that is total is 471 crore, also your major is the term debt, that is 2.2 crore. So, I need the inventory number, trade receivable number, trade payable number, unbilled revenue, mobilization advance and retention money. Unbilled revenue, sorry your real one is the data balance. Yes, data, inventory, trade payable. Okay, so data balance is 638 crore rupees. Okay. Okay, and then the mobilization advance is 412 crore rupees. 412, okay. And trade payable is 630 crore rupees. 648, okay. Inventory is 26 crore rupees. 228, okay. Okay. Yeah, retention money and unbilled revenue. Sir, you said the unbilled revenue is 512 crore. 592. So, 582. Sorry, 562. 582. 582. 582. 582. 582. 582. Okay. Okay. Okay. Okay. Okay. Sir, you said the unbilled revenue is 512 crore. 592. 592. Sorry, 562. 582. 582. 582 and retention money, so last quarter it was 175. What is the number? It's around 190 crore rupees, retention. 190 crore, okay. Okay. Lastly, in terms of the, you mentioned that how much orders that we have bidded, in terms of to be bidded 80,000 crore that you mentioned, how much we have already bidded and yet to... There are 15,000 of the orders already bidded, but we are yet, they are not open, so expected to be open within say next 15-20 days. Okay. Okay. Okay. Thank you, sir, and all the best. Thank you. Participants, if you wish to ask a question, kindly press star 1. This question is from the line of Ashish Shah from Centrum Broking Limited. Kindly proceed. Yeah, thank you for the opportunity. So, my question is on the, some of the newer segments that we are planning to get into, like railways, you know, water and metro we have recently caught into. What are the margin expectations from these segments? Because typically when we see the other construction companies engaged in some of these segments, their margins tend to be in probably maybe 11 to 13 percent range, and they do not, you know, kind of manage 15 percent margin or 16 percent margin. So, how do we would like to guide on our future margins? It's a project which we are looking into ahead of the metro or railway, so there we are keeping, so that's why you can see, because we are putting our entire trucks through the last one and a half year or so, but we cannot keep getting many projects out of this water or metro or railways. But then again we are keeping very clear eye on that, because margin should be there at least because we are keeping 14 to 15 percent, not less than 14 percent margins in other sectors, well we can at the entry level. This is at the entry level. And as already we have given you that last three years we have seen the margins at about say 18 to 20 percent that are coming from ham, and the mix of ETC which we are seeing in, even in ETC operation, we are making margins of about say 13 to 15 percent at range. So, there is an averaging output is coming at about say 15 percent. Okay, so even on a blended basis if the segments become like maybe 20, 25 percent, we will still be probably like 15 plus margin, 15, 15 and a half. Yes. Okay. Correct. Okay. Right. Sir, also, you know, more in terms of the asset monetization that you touched upon earlier, if you can just elaborate a little exactly, I mean, at what stage we are, you mentioned something about technical due diligence. So, what is the kind of time frame that we are expecting and any expectation of how much we expect to get from monetization? No, see, as of now the number is not very clear on it. So, you already, in the last part also we have discussed on it that the expected valuation is about 1.4 to 1.9 percent of the equity which we have invested into these four projects. So, that is one part. This is almost, as more of the clarity has come, thereupon the technical due diligence has been started. Because unless the data is being principally agreed, so nothing of that nature can be taken up. So, we are already into that phase where most of the things are all aligned. Now, who's that? So, anything with like SPA and binding agreement to be signed, so which is the shortest period we expect? So, once everything is over, within next, within a month or so, we can conclude upon our DE closure. And thereupon, I think the projections and everything of any, there is NOC to the lenders and NHJ. It will take another three to five months. So, probably by September end, we believe that we would be able to monetize those things and that actually cash can come into accounts. Sure, sir. Also, lastly, can you just tell us in terms of this new hamlet that we've got, so what is the rate at which the financial closure can happen? I mean, what is the kind of inflate of the banks at this point of time? It's very early to say about it. We are initially getting offer about, say, 88.3% or 85.5%. So, but it's very early to say. Sure. And the equity debt portion, etc., will remain the same? Yeah. There is no change from the historical debt? Almost will be the same. Right. Okay. Thank you. Thank you for your answers. Thank you. A reminder to participants, kindly press star 1 to ask a question. The next question is from the line of Nikhil Adhikar from Dan Capital. Thank you. Thank you, sir. Thanks for the opportunity. So, just to clarify once, the bonus income has been around 16 crores in this water, right? Yes. It's 15.95 crores to be very precise and that is at the SPG level. See, at the company level, it has been 90% of that. It is currently worth some crores. So, sir, SPG factors that against the revenue. So, the margin is coming out to be around 15.6, 15.7% to us. I think 15.6, 15.73 to be very correct. Right. So, sir, are we still seeing some margin pressure? I will explain the few reasons that margins definitely at 16 are much visible. The employee cost has gone high in this particular stage because the projects which we have recently mobilized and the even the capped cost of the camp construction etc. has been done in those projects which is giving a higher number of that particular expense and all of it. So, it is coming out because 1 to 1.5% is going into those numbers. So, that would be again gradually being spread in the coming quarter revenue. Understood, sir. Sir, about the DMRC project, this is our first non-route project. So, what are the kind of margins that you are targeting here? Already, as we have given the guidance, we are getting at about same margin, 14%. Okay. Sir, and any guidance as to like you have mentioned a unique grid pipeline of 73,000 cross-routes. So, can you just give a flavor as to what will be the competitive intensity right now? Sir, that we cannot just guarantee, but definitely it has been cooled down. We have seen the number of projects we have just like in Kandahar Ring Road, even only two bidders were there. In one of the projects of Haryana, there were only six to seven bidders. So, in many of the projects, they are coming at as high as 9 to 10 or 12 bidders. But many projects are now getting the less number of bidders. So, which I believe that this good amount of opportunity, good amount of bids are there. So, with that, it gives us a fair chance that we will be able to achieve 3,000 to 4,003 projects from Haryana or another one from Railways or so, we will be able to get in this year. Understood, sir. And sir, earlier there was talks of the grant being reduced to 20%. So, any news around that? No, no. Nothing of very concrete outcome is there. Okay, sir. Just a final question. What is the total equity invested in all the assets that we have identified for monetization? So, already I have given that is 722 crore rupees is where exactly equity which we have funded is around 20 crore rupees till December 2022. Projects which have been monetized are supposed to stay at 40 crore. So, any of the projects which are going to be monetized, full number is for those three and a half crore rupees. Understood, sir. Thanks a lot. That's the problem. Thank you. Participants, if you wish to ask a question, kindly press star 1. The next question is from the line of Sarvesh Gupta from maximal capital. Can you proceed? Good evening, sir. And congratulations on a good rate of number. Sir, first question. Order inflows. So, I think till date we are at 6,000 crore. But I guess net of price variation it might be somewhat closer to 5,000 odd crores. Net of… Sorry, sorry, sorry. I will just correct. Net of price variation means these are net of GFC numbers which we have added this year. And the price variation is all there. Whatever price escalation there are, it is going to be paid over and above these numbers. Okay. So, 6,000 crore net inflow till December from March. Then if we add the price variation, then what is that number, sir? Exactly. We cannot assume any price variation on a percentage basis. But as a normal trend we have seen, like in this particular quarter we have received some 87 crores of price variation. So, it is going as high as 8% as of now. But usually the trend is 6 to 8% is the trend which we have seen in the past historical part. Okay. So, on top of this 6,000 crore, we are guiding for 3 to 4,000 crore in this current quarter. So, it will make it 9 to 10,000 crore order inflow for this quarter. Is that right, sir? Yes. And then for the coming year, what is the expectation? See, we are keeping as a guidance on that basis that whatever we will be doing in this particular year. And basis that we would be like to add to maintain a ratio of 2.5 to 3 times the order to be billed. Okay. So, let's say next year you are planning to do it. It would be coming roughly in the range of about 8,000 to 9,000 again. Understood. Understood. And sir, on this particular corporate group from which there has been a lot of media stories, so that occupies a major part of your order book. So, any sense on these corporate developments? How can they potentially sort of have a negative impact on us if at all, you know, if you can throw some more color on, you know, are there any risk sort of mitigation measures here? Should anything happen on these fronts? Because this is quite significant part of your order book. I understand your question. But basically, say, with the recent development which we have also seen as we have experienced with touching upon the authority where the judges from coming from duty government and touching upon their higher authorities, even with the group, we have understood that the operationally there is no challenge as far as they are having their own commitment. And there is one extra account being the denigrated extra account for the own entire fee is maintained, where I think there are the fees, one of the lenders and the client and the group company. So, they are all having that clarity that whatever fund is going to be paid from that particular extra is going to the ETC contractor for any small liability of that nature. So, with that understanding, it is a lot of big challenge for us as of now because they are also given the comfort and the authority has also given the comfort of that Any sense on how much will be the lenders contributing to this which is already tied up versus how much will be the funds which will come from your client? Sir, ideally, if you see any project of that where about 36% of the project is coming from the duty government, which is coming in the form of grants, depending upon the various stages of the completion of the project. So, the equity commitment is carrying about 40% of the remaining portion of that and another 60% is coming from the lenders. Ok, so around 15-20% of the total is the equity commitment from your client. Yes, so, it is coming to that. Ok, and these are all tied up already? Yes, initially all the components are there, everything is done and again you can mention upon it. There is a time frame for the completion of these projects. So, accordingly, it is not that the whole effect is going to be affected. It is simply that the complete effect of the state effect is there. It is going to be affected. Ok, so you don't see any impact on this particular chunk as such and your execution will continue as it is? Yes, as of now they are already very clear. They have taken the BP plan, monthly plans and whatever we are running at about say that number, they are very clear on it that we should add our resources or rather we should run at a more aggressive pace because of the winter and the fog time in January we could not do much in that. So, that is how again the clarity is there. Understood. And sir, on the HAM projects of 340 odd crores, I think the expectation which was there in previous quarters was that in quarter 4 we would be able to materialize these things. So, now it seems like because of our evaluation expectation, we don't know the timeline for this. No, no, even the timeline. The discussion is at a very advanced stage. The due revisions means that the proper technical due revisions are at a very advanced stage. The discussion is almost almost concluded. My answer is that initially at the end, and it was already discussed that we would be concluding our deal and therefore it will take another 6 months for it to exist. But valuation is not a concern. That has already been sorted. Is that the right understanding, sir? Normally it is being principally agreed upon. So, fair absolute number I cannot just give right now, but there is a post-binding agreement and the trustee only which can be disclosed. Understood. And finally on the NHAI pipeline, sir, so it has been like quite strong for a long time now for many quarters, but we are not seeing much of action which is likely counter-intuitive also because as you rightly said, election is there. So, you know, it could have been pre-poned rather than, you know, all this pipeline getting stuck and sort of not being given out or given out very close to the elections itself. No, I think it is very clear because NHAI has given the clear indication to all the construction and contractors to run, to increase the execution rate as of now which is quite low. They have also indicated not many projects which is coming as of right now to be completed and in the bidding pipeline as well. So, it hardly matters the election year or whatever. So, what is not visible is that they are continuously they are awarding the project, but it is not many companies who are not in the listed entities or not in the public domain. So, they are getting the project. So, it is not that the bidding is not going on. Bidding is going on. Okay. So, we are confident of getting this in place as for our pipeline expectation in the coming quarters. Correct, sir. Understood, sir. Thank you, sir. All the best. Thank you. Participants, if you wish to ask a question, can we press star 1? The next question is from the line of Ibrahim Khurana from Anand Vartishah's. Can you proceed? Thank you for taking my question, sir. So, I think most of my questions are already answered. Just a couple of questions on my part. One was I want to understand the ROW status for the recent hybrid annuity that we have been able to manage and if you could also help us with the land status for the two Odisha packages as well. I think you were more like 80 odd percent there. So, have you seen any progress there and also in this annuity let us know the land status of these? No. As for the land availability in the personal and all Odisha and the 80 projects, it is more than 90 percent of the land is available now and we are running at a detailed stage in those projects and you can see in our total execution what we have done during this particular quarter where significant contribution has come from 3.7 crore from all Vipul Vishakhapatnam AP and OD projects. So, that is in this particular Zindabad range also 40 percent of the land is right now available. So, by the time we complete our financial closure, I would say by May or June we will be able to get our entire 80 percent plus land. Sure. And the second question I have with Zindabad actually we have already started working so the zero rate has already come to us. Is it fair to assume some of these mobilization advances that were supposed to come to us would have? Yeah, we have taken just 1 percent of the mobilization advance out of the 49 crore with these entire particular projects. We have again applied for another 1 percent that would be in Saturday and March we would be looking forward to that. Okay. Is it, I mean we are supposed to get 10 percent right? So, do you want to do it in 1 percent each or? Well, we are mostly which we don't want to do because all are interest rating. There should be only limit so there should be 10 percent limit and these mobilization advance is variable. So, rather we would be looking more into the macro where the mobilization advance is interest free. Sure. And the metro project that we have taken, would you be required to spend any money on it in terms of any specific equipment that would be required by Andhra Pradesh? We are already having most of the experience with the very nearby projects of the Andhra Pradesh. The entire establishment, most of the things are all in place. So, what is going to be added is a slight effect addition of the entry and phrase that is not a very big amount. Sure. Sir, I am not sure if you gave this number in your opening remarks but how much would be the capix for the full year and how much is the interest per month? So, capix for the full year which is right now being what we have done is we have also all time high capix because of the phasing out. It's almost 243 crore rupees of capix that we have done during this financial year. But this 243 crore is not only the planned equipment. If you just take into air that is the land is again there, 28 crores of land being invested. Here the model is going to be developed. And can construction earlier it was going to the expense now it is 25 crores of can construction which gradually is going to be expense out. So, this is how the capix is looking a bit far. But otherwise we are keeping, maintaining that guidance that 81 crores of capix will be added in subsequent, not this year, but the 24 and 25. And then we are almost at the end of the year about 10 crores which are likely to be added. So, any planning to send equipment further on 2021? We are going to sell out some not less than 25 to 30 crores of equipment during this one year. Sure. Thank you. And all the very best for future. Thank you. As a reminder to participants kindly press star 1 to ask a question. The next question is from the line of Uttam Kumar Srinivas from Accessicurities. Can you proceed? Thanks for the opportunity. My question pertains to the competitive intensity in just you talk about. So, can you make me know whether competitive intensity has come down both in HEM as well as APC or is it only in HEM? It is only in HEM. APC is almost the same. So, it is still 13-14 degrees out there in APC? Yeah, we are getting not more than 20 degrees per day. And going from 25 to 35 percent. Okay, okay. And sir, this quarter, our imply cost has increased. So, this will continue the fourth quarter also? Why? Inquire cost has increased in this quarter. So, it would be all spread upon your total turnover. Wherever the mobilization was going on, we can see in quarter two and three, most of the mobilization was done. Because the division we are not seeing that if there is not 1100, it will be coming at about 1500 now. So, this way I think the spread would be that this imply cost remains the same, but the turnover is more. Okay. And now coming to the railway capex. So, you would be bidding for most of the railway projects or some particular projects like station development and all? We have been bidding few of the projects. We have already bidded. And few of the projects are already open. So, we are keen on that. We will be bidding those projects as well. Okay, okay. Thanks, sir. And all the best to you. Thank you. Thank you. To ask the question, can we press star one? The next question is from the line of Disika Banjari from Philip Capital. Can we proceed? Please. Hi, sir. Congratulations on a great set of numbers. Most of my questions have been answered just to confirm. I think I missed out on that. What capex, net capex are you planning for FY24 and 25? Capax, sorry, you can capax almost 80 or so rupees likely to be added in FY24 and 80 to 100 rupees in 25. So, most of the capex which we are adding this year would be sufficient enough to take out the next 2-3 years of that. Okay, this is net of the, we are planning to sell next year. Net of net edition. Okay, as just a last question, when are we expecting AD for Karnal Monast Road, the new hand that we have seen? See, as of now the trend looks like we are by June or it is not in June, by September we will be taking that for the date. Okay, sir. That is from my side. Thank you. Thank you. Participants, if you wish to ask a question, please press star 1. The next question is from the line of Asha from Illara Capital. Can we proceed? Sorry for if I am repeating the question, but I just wanted to clarify that you mentioned that 1500 crores of revenue, you will do it in Q4. Yes. So, from where will that, which all projects should we contribute most of it, if you could just provide a brief break up. Yes, sure. I will, major portion will be coming from if you just take a major project. One is the Advanash Tengku Road of Delhi. There the yield would be coming in the range of about 225 crore rupees. So, it is a 225 crore rupees and the 550 crore rupees would be coming from Aipur, Vishwaka, Patnam, AC1, Odisha, 5 and 6. These three projects. And a 125 crore rupees would be integrated in Kambam Deora for the packet 1 and 2. This is about 10% of the total project cost. So, likewise, I think the Jhanga Expressway is coming about the 650 crore rupees would be coming from Jhanga Expressway. And second question was regarding that you have made some investment in a partnership firm called SafetyForce. So, if you could just provide some details on the same, what is it regarding and how is it beneficial for us. Yes, for sure. This is a manufacturing company, which usually manufactures the safety cash barriers. So, these are the cash barriers being supplied to us in many of the projects. This is the company which we know from the last three years. So, we found that there was a better integration in the form of not going into the manufacturing by ourselves, but going into that, it is a dedicated or committed enterprise where we would be getting better advantage. And there is a huge growth of Washington in the coming future. Yes, that's all from my side. Thank you. Thank you. To ask a question, please press star 1 on a testing telephone. The next question is from the line of C.A. Akari Chanakya, an individual investor, can we proceed? Good evening, sir. And congratulations on a good set of numbers. Sir, just wanted to confirm just one thing, because most of the questions are already answered. This is with respect to the margin party. You said it will be around 15-16 percent. Just wanted to confirm, is this the path margin you are talking about or the EBITDA margin? The EBITDA margin. The path margin is obviously that's an effective index is there. And that's interest and you can see the definition of EBITDA, the decision and the interest cost, which is roughly coming at about say 3.5 to 3.4 percent, that range. So PBD is coming at about 13.5 percent this year. So it would be, the path is coming at about 9.3 to 10 percent. And that will be the case for the next year that is F by 24? This is the same range we are seeking for this year as well as next year. Okay, so just to confirm, it will be somewhere in the range of 9.3 to 10 percent, right? Correct. And the top line will be somewhere around, hovering around, so 5,500 scores to 5,600 scores, correct? Correct. Okay, okay. Thank you, sir. Thank you for the answer. Thank you. At this time, if you wish to ask a question, please press star 1. The question is from the line of Bharat Jainani from Money Control Pro. Can we proceed? Yes, sir. Thanks for the opportunity and congrats on a good set of numbers. I just missed the number, like you mentioned that you have 50,000 crore of projects pipeline. So out of that, 73,000 crore is for roads. And so what is the balance? I missed the number of balance for 7,000 crore that you gave. That is for which segment, basically? 4,000 crore is for the area which we are looking at for the laser project. 2,000 is the water project and 1,500 are the metro projects. And so basically, based on the project date and your plan, now you have got a breakthrough in the metro project. So next year or 1 or 2 years down the line, what is your view that was the target? Because we have been living at this point since last many years of recently. How much would be the contribution of the non-road, what is the non-road contribution in the overall order book that you expect in next 2-3 years time line? And in the non-road segment, what will be the major areas? I think you should be getting the projects. Thank you. So already we have discussed, I think we are gradually going to increase the other than the roads, 25% in next 3 years. Gradually it could be added. So looking to that, total revenue sharing from these kinds of projects would be in the trend. And right now, if it is only metro and there subsequently in the year 2024 and 25, you will be able to get many more projects to other sectors. The sectors are like metro, railways, water and it can be airport even. So going beyond that, if you see that gradually the number of revenue would be coming from these sectors. Ok, ok. Thanks and all the best. Thank you. Participants, if you wish to ask a question, can you press star 1? Next question is from the line of Swaminshah from Dollar Capital. Can we proceed? Thank you sir. Sir, appointed date for this metro project will be 1-2 months from now. They have already declared, it is the 23rd of January. We have already started the work. Ok, got it. And the 15,000 crore project that we have bided roughly, how much would be the hand project from them? Sir, mostly our hand project, few are EPC, just 2000-3000 crores of EPC. And all are about 10,000 crores are about time project. And remaining say 20, say about 15 million crores are from railways. These I think one or two other projects. Ok. And in that, any specific, any new states that we are, we have already bided, any of the new states? Yeah, we have bided one or two projects in 10,000 crores. Ok, got it. And sir, any thought or any idea in terms of the Bharat Mala phase 2, when it is likely to be approved or what could be the size of that? So, structurally I am trying to look at, so in next two, two and half years, that is phase 1 will be over. So, what will be the next in terms of the opportunity size? So, this phase 1 was started with 5 to 6 lakh crore and now close to 11 lakh, 12 lakh crore. So, just trying to understand any, any broad idea, will it be the same kind of a size 10 lakh crore kind of a Bharat Mala phase 2? I am not having any big idea on those things, but definitely the discussions and the plans are very much on that track only. So, by, I think by the FY23 or by the year end, you would be able to get the clear guidance. But for sure, I think about 1500 or so kilometers should be fitted or the kilometers should be developed in that, so otherwise I would not do. Ok, ok. Thank you for running all of this. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to Mr. Harinder Singh for closing comments. So, thank you all. I appreciate you all for taking out your time out for attending today's investigation call. I hope all of your questions were answered adequately. In case there is any follow-up queries, please feel free to reach out to us or our higher advisers, GoIndia advisers. Thank you. Thank you. On behalf of GoIndia advisers, that concludes this conference. Thank you for joining us. You may now disconnect your lines.