Q1 2027 Capacite Infraprojects Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Capacite Infraprojects Ltd. Q1 FY27 conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Before we begin, a brief disclaimer: The presentation which Capacite Infraprojects Ltd. has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward-looking statements.

Operator: The presentation, which Capacite Infraprojects Limited has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward-looking statements concerning Capacite Infraprojects Limited business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Rohit Katyal, Executive Chairman, Capacite Infraprojects. Thank you, and over to you, Mr. Katyal.

Speaker #1: Concerning Capacite Infraprojects Ltd.'s business prospects and profitability, these are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Rohit Katial, Executive Chairman, Capacite Infra.

Speaker #1: Thank you, and over to you, Mr. Katial.

Speaker #2: Good afternoon. On behalf of Capacite Infraprojects Ltd., I extend a warm welcome to all participants on our Q1 FY27 earnings conference call. Joining me today are Mr. Rajesh La, CFO, along with Mr. Alok Mehrotra, Mr. Nishit Pujari, and our investor relations team from Marathon Capital.

Rohit Katyal: Good afternoon. On behalf of Capacite Infraprojects Limited, I extend a warm welcome to all participants on our Q1 FY27 earnings conference call. Joining me today are Mr. Rajesh, CFO, along with Mr. Alok Mehrotra, Nishith Pujary, and our investor relations team from Marathon Capital. I trust you have had a chance to review our results. The presentation and press release have been uploaded on the stock exchanges and are also available on the company's website. The momentum built up by the company in FY26 is poised to deliver improved revenue growth in the remainder of the current financial year. The performance was impacted by workman shortages and factors beyond the control of the company. However, the workman situation has since normalized, and we are confident of achieving our guided performance for the current fiscal over the remaining three quarters of FY27.

Speaker #2: I trust you have had a chance to review our results. The presentation and press release have been uploaded to the stock exchanges and are also available on the company's website.

Speaker #2: The momentum built up by the company in FY26 is poised to deliver improved revenue growth in the remainder of the current financial year. The performance was impacted by workmen shortages and factors beyond the control of the company.

Speaker #2: However, the workmen situation has since normalized, and we are confident of achieving our guided performance. For the current fiscal over the remaining three quarters of FY27, let me turn to some of the key updates.

Rohit Katyal: Let me turn to some of the key updates. Commodity price volatility, especially in respect to non-ferrous metals, is yet to get reflected in the inflation indexes being published by the government. As a prudent measure, the company has therefore taken an additional provision of INR 10 crores in the current quarter. Order book stood at INR 13,535 crores as on 30 June 2026. Public sector accounts for 55%, while private sector accounts for 45% of the total order book. FY27 order inflow target is between INR 4,500 to 5,000 crores. Order book so far in FY27 stands at INR 1,071 crores. Supported by the strong pipeline of identified quality projects for bidding, INR 22,000 crores in public sector and INR 5,000 crores in private sector over Q2 and Q3, the company remains confident of achieving its FY27 order inflow target.

Speaker #2: Commodity price volatility, especially with respect to non-ferrous metals, is yet to be reflected in the inflation indexes being published by the government. As a prudent measure, the company has therefore taken an additional provision of ₹10 crore in the current quarter.

Speaker #2: Order books stood at ₹13,535 crore as on 30th June 2026. Public sector accounts for 55% while private sector accounts for 45% of the total order book.

Speaker #2: The FY27 order inflow target is between ₹4,500 to ₹5,000 crore. The order book so far in FY27 stands at ₹1,071 crore. Supported by the strong pipeline of identified quality projects for bidding—₹22,000 crore in the public sector and ₹5,000 crore in the private sector over Q2 and Q3—the company remains confident of achieving its FY27 order inflow target.

Speaker #2: The promoter share pledge has been reduced from 85.5 lakh shares on an absolute basis as on 31st March 2026 to 50 lakh shares currently. The company targets a full release of the pledge by the end of the current financial year.

Rohit Katyal: The promoter share pledge has been reduced from 85.5 lakh shares on absolute basis as on 31 March 2026 to 50 lakh shares currently. The company targets for full release of the pledge by the end of the current financial year. I now turn to the consolidated performance highlights for Q1 FY27. Revenue for Q1 FY27 stood at INR 629 crores, up by 7% as compared to INR 589 crores in Q1 FY26. EBITDA for Q1 FY27 stood at INR 99 crores, thereby moderating by 3% as compared to INR 102 crores in Q1 FY26. EBITDA margin for Q1 FY27 stood at 15.7%, as compared to 17.2% in Q1 FY26. EBIT for Q1 FY27 stood at INR 80 crores, down by 8% as compared to INR 87 crores in Q1 FY26. EBIT margin for Q1 FY27 stood at 12.5%.

Speaker #2: I now turn to the consolidated performance highlights for Q1 FY27. Revenue for Q1 FY27 stood at ₹629 crore, up by 7% as compared to ₹589 crore in Q1 FY26.

Speaker #2: EBITDA for Q1 FY27 stood at ₹99 crore, thereby moderating by 3% as compared to ₹102 crore in Q1 FY26. EBITDA margin for Q1 FY27 stood at 15.7% as compared to 17.2% in Q1 FY26.

Speaker #2: EBIT for Q1 FY27 stood at ₹80 crore, down by 8% as compared to ₹87 crore in Q1 FY26. EBIT margin for Q1 FY27 stood at 12.5%.

Speaker #2: PAT for Q1 FY27 stood at ₹40 crore, as compared to ₹47 crore in Q1 FY26. PAT margin for Q1 FY27 came in at 6.2%.

Rohit Katyal: PAT for Q1 FY27 stood at INR 40 crores as compared to INR 47 crores in Q1 FY26. PAT margin for Q1 FY27 came in at 6.2%. The key financial metrics, as mentioned above, were impacted by the INR 10 crores additional provision as mentioned in my earlier remarks. I now leave the floor open for questions. Thank you.

Speaker #2: The key financial metrics, as mentioned above, were impacted by the ₹10 crore additional provision, as I stated in my earlier remarks. I now leave the floor open for questions.

Speaker #2: Thank you.

Speaker #1: 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 their touch-tone telephone.

Operator: 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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vinay Chaudhary from Invexar Capital LLP. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue is assembled. The first question is from the line of Vinay Chaudhary from Invexa Capital LLP.

Speaker #1: Please go ahead.

Speaker #3: Hello. Yeah. Hi. Good afternoon. So I am my question is regarding the revenue the execution so we have seen you know the order inflow being strong this quarter as well.

Vinay Chaudhary: Hello. Hi, good afternoon. My question is regarding the revenue, the execution. We have seen the order inflow being strong this quarter as well. Of course, it's YTD and our order book to revenue ratio is quite strong. We have not seen the conversion in our execution. In a project level, where are we not able to execute at that level? If you can throw some light on that.

Speaker #3: Of course, it's YTD, so—and our order book to revenue ratio is quite strong. But we have not seen, you know, the conversion in our execution. So where, like, at a project level, are we not able to execute at that level? If you can throw some light on that?

Speaker #2: Yeah, good question. So the order book includes IIT Bombay, that's a ₹550 crore contract, which was to start in Q4 of the last fiscal.

Rohit Katyal: Yeah, good question. The order book includes IIT Bombay. That's an INR 550 crore contract, which was to start in Q4 of the last fiscal, but will start only in Q2 of the current fiscal because there were no tree-cutting permissions available with the client. Therefore, while we have the extensions in place, this impacted because the project is a fast-track project of 24 months. The first Q1 and Q2 of the current fiscal should have had revenues of in excess of INR 65 to 70 crores from that project alone. This is one impact. Secondly, the revenue buildup of NBCC has happened from the current quarter, and you will see a threefold increase in that project as well.

Speaker #2: But we'll start only in quarter two of the current fiscal because there were not recurring permissions available with the client. So, therefore, while we have the extensions in place, this impacted because the project is a fast-track project of 24 months, so the first quarter one and quarter two of the current fiscal should have had revenues in excess of ₹65 to ₹70 crore from that project alone.

Speaker #2: This is one impact. Secondly, the revenue buildup of NBCC has happened from the current quarter, and you will see a three-fold increase in that project as well.

Speaker #2: So, like there are right-of-way issues with clients in other sectors, we could also face problems with certain clients for tree cutting or certain encroachment issues with government clients.

Rohit Katyal: Like there are right-of-way issues with clients in other sectors, we could also face problems with certain clients for tree cutting or certain encroachment issues with government clients. I'm happy to say that the first building of IIT has been handed over, the design has been approved, and the execution has started. I do believe that the execution will double up in these projects or more over the next quarter or two. Therefore, I am very confident, as I explained, to achieve the full year guidance. Now, coming to the overall order book to revenue. You should look at our CAGR over 2022 till 2026, which is close to 20% or thereabout. You should look at our PAT, CAGR will be more than 30%. The company has been able to convert.

Speaker #2: I'm happy to say that the first building of IIT has been handed over. The design has been approved, and the execution has started.

Speaker #2: So, I do believe that the execution will double up in these projects, or more, over the next quarter or two. Therefore, I am very confident, as I explained, that we will achieve the full-year guidance.

Speaker #2: Now, coming to the overall order book to revenue, you should look at our CAGR over 2022 till 2026, which is close to 20% or thereabouts.

Speaker #2: You should look at our PAT, which is at about a CAGR of more than 30%. So, the company has been able to convert—yes, you are right, we can do far better, and we are on line to do that.

Rohit Katyal: Yes, you are right, we can do far better, and we are on line to do that. Hope to have answered your question.

Speaker #2: Hope I have answered your question.

Speaker #3: Right. So so just to reiterate like so H2 I assume will be quite stronger assuming you know the monsoon impact the seasonality in in the current quarter so it will be fair to assume that quarterly run rate can touch above 850 or about so to achieve our full year guidance.

Vinay Chaudhary: Right. Just to reiterate, H2, I assume will be quite stronger assuming the monsoon impact, the seasonality in the current quarter. It will be fair to assume that quarterly run rate can touch above INR 850 or above so to achieve our full year guidance.

Speaker #2: It will be 101%. Our guidance is 20% year on year, all right, and we are well on track to do that. There has been a moderate increase. We had mentioned in the last conference call also that the labor had dipped to 50% in May and then to 7,000—that is a shortfall of nearly 30%—in June. As I speak to you today, the labor requirement is fully in place, and therefore you will see quite a satisfactory uptick in quarter two as well. And obviously, we are looking to do that Rs 850 crore plus in quarter three and quarter four.

Rohit Katyal: It will, 101%. Our guidance is 20% year on year. All right? We are well on track to do that. There has been a moderate increase. We had mentioned in the last conference call also that the labor had dipped to 50% in May and then to 7,000, that is shortfall of nearly 30% in June. As I speak to you today, the labor requirement is fully in place, therefore, you will see quite a satisfactory uptick in Q2 as well. Obviously, we are looking to do that INR 850 crore plus in Q3 and Q4.

Speaker #3: Sure. Secondly on the provision so of course we have guided about 15 and a half to 16% on EBITDA level margin while we have provided about incremental 1010 20 crores in the last quarter and the current quarter so you know just wanted to understand if like you know the raw material normalizes the price normalizes is is it fair to assume that these this 20 crores can potentially get reversed which can you know improve our PNL for for the coming quarters or is it absorbed already these 20 crores is it something which cannot be passed or is it something which which can be reversed?

Vinay Chaudhary: Sure. Secondly, on the provision. Of course, we have guided about 15.5% to 16% on EBITDA level margin, while we have provided about incremental INR 20 crore in the last Q and the current Q. Just wanted to understand if the raw material normalizes, the price normalizes, is it fair to assume that these INR 20 crore can potentially get reversed, which can improve our P&L for the coming Qs? Or is it absorbed already, these INR 20 crore? Is it something which cannot be passed or is it something which can be reversed?

Speaker #2: So I had explained in my last quarter conference call that while steel prices have moderated, we see that the prices of aluminium, which went up by 35–40%, the price variation has not caught up with that.

Rohit Katyal: I had explained in my last Q conference call that while the steel prices have moderated, however, we see that the prices of aluminum, which went up by 35% to 40%, the price variation has not caught up with that. Okay? Similarly, other non-ferrous metals like copper. You see CPWD has just published a new DSR, it will yet take a Q or 2 more till the entire escalation is covered by these indices. We have to wait and watch, but I am pretty confident a large portion of this will get reversed. It is only prudent to provide because as on 30 June, it was not covering. Similarly, as on 31 March, it was not covering. Answering your question, we are extremely hopeful of reversing this provision in Q3 and Q4. However, there is a disclaimer.

Speaker #2: Okay. Similarly other non-ferrous metals like copper you see CPWD has just published a new DSR and it is yet to it will yet take a quarter or two more till the entire escalation is covered by these indices so we have to wait and watch but I am pretty confident a large portion of this will get reversed it is only prudent to provide because as on 30th June it was not covering similarly as on 31st of March it was not covering so answering your question we are extremely hopeful of reversing this provision in quarter three and quarter four however there's a disclaimer it again depends on the inflation index and not on the food or retail or wholesale price this is regarding the copper aluminium and so on and so forth but given the seven years or eight years history generally we have been able to cover up so let us wait and hope for the best but a substantial portion will yes get reversed and add to the bottom line thanks for you know answering the questions.

Rohit Katyal: It again depends on the inflation index and not on the food or retail or wholesale price. This is regarding the copper, aluminum, and so on and so forth. Given the 7 years or 8 years history, generally we have been able to cover up. Let us wait and hope for the best, but a substantial portion will, yes, get reversed and add to the bottom line.

Vinay Chaudhary: Thanks for answering the questions.

Speaker #2: Thank you.

Rohit Katyal: Thank you.

Speaker #1: Thank you. The next question is from the line of Rohit Gupta from RKG Online Services. Please go ahead.

Operator: Thank you. The next question is from the line of Rohit Gupta from RKG Online Services. Please go ahead.

Speaker #4: Hello. Good afternoon sir.

Rohit Gupta: Hello. Good afternoon, sir.

Speaker #2: Yeah. Good afternoon. Please go ahead.

Rohit Katyal: Yeah. Good afternoon. Please go ahead.

Speaker #4: Sir, my question is regarding the Mahada BDD Berlin project. What is the current outstanding order value that is still left to be executed, and when do you expect this remaining value to be included in the Capacite order book?

Rohit Gupta: Sir, my question is regarding MHADA BDD Worli project. What is the current outstanding order value which is still left to be executed? When do you expect this remaining value to be included in Capacite order book?

Speaker #2: See the total order value at the TCC level, that is, the parent company which is owned jointly by Tata Projects and Capacite, is close to ₹17,000 crores, including escalation.

Rohit Katyal: The total order value on the TCC level, that is the parent company, which is owned jointly by Tata Projects and Capacite, is close to INR 17,000 crore, including escalation. Out of this, MHADA has handed over 50% of the project, which is about 34 rehab buildings. These 34 rehab buildings translate into an order book at TCC level, again, the parent company level, of about INR 7,500 to 8,000 crore. Out of this INR 8,000 crore, 35% belongs to Capacite Infraprojects Limited. Approximately 7,500 to 8,000 into 35%, that is our order book as far as MHADA project is concerned at the parent level. At the subcontractor, that is 35% of the subcontract is being done by Capacite Infraprojects on standalone basis, and 65% by Tata Projects Limited. It translates into the same value which I've just mentioned to you.

Speaker #2: Out of this, MADA has handed over 50% of the rehab, 50% of the project, which is about 34 rehab buildings. These 34 rehab buildings translate into an order book at the TCC level.

Speaker #2: At the parent company level, it's about ₹7,500 to ₹8,000 crores. Out of this ₹8,000 crores, 35% belongs to Capacite Infraprojects Limited.

Speaker #2: So approximately ₹7,500 to ₹8,000 crore into 35%, that is our order book as far as the MADA project is concerned. At the parent level, at the subcontractor, that is, 35% of the subcontract is being done by Capacite Infraprojects on a standalone basis.

Speaker #2: And 65% by Tata Projects Limited. It translates into the same value which I have just mentioned to you. However, some profit will—let me complete—however, some profit will be booked at a consolidated basis, like you are seeing profit from share of associate, and the balance profit will be booked in the standalone books of the company.

Rohit Gupta: Okay.

Rohit Gupta: Let me complete. However, some profit will be booked at consolidated basis, like you are seeing profit from share of associated, and the balance profit will be booked in the standalone books of the company.

Speaker #4: Okay, sir. And sir, my follow-up is: Capacite is currently L1 for the SIDCO Maha Awas DRS Housing Project. Any light on this?

Rohit Gupta: Okay, sir. Sir, my follow-up is, Capacite is currently L1 for the CIDCO Maha Awas DRS Housing project. Any light on this?

Speaker #2: So, as a policy, we don't declare L1 positions, but yes, we are L1 in a couple of projects. One of these is the one you have just mentioned, and we hope that within this month, that should get converted into an order.

Rohit Katyal: We, as a policy, don't declare L1 positions. Yes, we are L1 in a couple of projects. One of this is you have just mentioned, and we hope that within this month, that should get converted into an order.

Speaker #4: And the second one is a Chennai Metro Commercial Complex, another L1.

Rohit Gupta: Second one is the Chennai Metro Commercial Complex, another L1.

Speaker #2: Yeah, we are expecting that also to get converted in the current month. Apart from this, L1 positions, but as a company policy, since we don't declare on the stock exchanges, I will not be able to comment any further.

Rohit Katyal: Yeah. We are expecting that also to get converted in the current month.

Rohit Gupta: Okay.

Rohit Gupta: Apart from these L1 positions, as a company policy, since we don't declare on the stock exchanges, I will not be able to comment any further. This, because it's government in the public domain, I can't.

Speaker #2: This is because it's government and public domain; I can.

Speaker #4: Okay. Okay, sir. Okay. Just, thank you.

Rohit Gupta: Okay, sir. Just this.

Rohit Katyal: Thank you.

Speaker #1: Thank you. The next question is from the line of Vasudev from Novama. Please go ahead.

Operator: Thank you. The next question is from the line of Vasudev from Nuvama. Please go ahead.

Speaker #4: Yeah, thank you for the opportunity, sir. So, sir, what is our—you know, how are our works progressing in the SIDCO and the Signature Global projects?

[Analyst] (Nuvama): Yeah, thank you for the opportunity, sir. Sir, how are our works progressing in the CIDCO and the Signature Global project?

Vasudev Ganatra: Yeah, thank you for the opportunity, sir. Sir, how are our works progressing in the CIDCO and the Signature Global project?

Speaker #2: The Sidco project we are handing over virtually we had explained last time also we have handed over two locations so work is going on at the balance four locations we believe that the client has identified if you remember there were seven locations all put together so we are in the process of receiving the handover of the balance quantum of land starting quarter two and ending quarter three so therefore from quarter three you can expect enhanced revenues from Sidco project our completion for the remainder of the four locations we have received the extension from the client for March 28th which means that we have to further get a certified certified revenue of close to 1000 crores plus escalation thereon and that is to be done over the next 18 months and therefore the revenue guidance earlier given for Sidco is based on this 14 1500 crores plus escalation and we shall we are well on track to achieve that.

Rohit Katyal: The CIDCO project, we are handing over. Virtually, we had explained last time also, we have handed over two locations. Work is going on at the balance four locations. We believe that the client has identified, if you remember, there were seven locations all put together. We are in the process of receiving the handover of the balance quantum of land, starting Q2 and ending Q3. Therefore, from Q3, you can expect enhanced revenues from CIDCO project. Our completion for the remainder of the four locations, we have received the extension from the client for March 2028, which means that we have to further get a certified revenue of close to INR 1,000 crores, plus escalation thereon, and that is to be done over the next 18 months.

Rohit Katyal: Therefore, the revenue guidance earlier given for CIDCO is based on this INR 1,400 to 1,000 crores plus escalation. We are well on track to achieve that.

Speaker #4: Sure, sir. And on Signature Global?

[Analyst] (Nuvama): Sure, sir. On Signature Global?

Vasudev Ganatra: Sure, sir. On Signature Global?

Speaker #2: Signature Global: We are targeting to achieve approximately ₹22 crore monthly revenue and we are on track to do that. There was a serious dip in quarter one because of a significant shortfall in labor across the country, across the industry. But now, we have more than 1,000 boots on the ground at the project site and we are confident of achieving the targeted revenues. It has improved significantly in July, and you will see significant improvement between July and August.

Rohit Katyal: Signature Global, we are targeting to achieve approximately INR 22 crore monthly revenue. We are on track to do that. There was a serious dip in Q1 because of serious shortfall in labor across the country, across the industry. Now we have about more than 1,000 boots on the ground at the project site, and we are confident to achieve the targeted revenues. It has improved significantly in July, and you will see significant improvement between July and August.

Speaker #4: Okay. And sir, for MHADA and SIDCO also, if you can give a similar number—like what is our current monthly or quarterly run rate, and how are we expecting to improve it?

[Analyst] (Nuvama): Okay. Sir, for MHADA and CIDCO, sir, if you can give a similar number, like what is our current monthly or quarterly run rate, and how are we expecting to improve it?

Vasudev Ganatra: Okay. Sir, for MHADA and CIDCO, sir, if you can give a similar number, like what is our current monthly or quarterly run rate, and how are we expecting to improve it?

Speaker #2: So our target is to do about ₹20 crores per month on SIDCO—sorry, in MADA—in Quarter 2. We expect another four buildings to open up in Quarter 3, and let me tell you, at the subcontractor level, one building is approximately ₹140 crores. So with the opening up of each building, we add approximately ₹6 crores to the top line, because each slab casting gives a revenue of about ₹3.1 crores.

Rohit Katyal: Our target is to do about INR 20 crore per month on MHADA in Q2. We expect another four buildings to open up in Q3. Let me tell you, at the subcontractor level, one building is approximately INR 140 crore. With opening up of each building, we add approximately INR 6 crore to the top line, because each slab casting gives a revenue of about INR 3.1 crore. It is a very long answer, but to answer your questions, in this current quarter, we should be at INR 60 crore approximately, and then for Q3 and Q4, we expect INR 75 crore plus from this project alone, given the current status of the land handed over by the client to the parent company, TCC, and by TCC to Capacite.

Speaker #2: So, it's a very long answer, but to answer your questions—in this current quarter, we should be at approximately ₹60 crore. Then, for Quarter 3 and Quarter 4, we expect ₹75 crore plus from this project alone, given the current status of the land handed over by the client to the parent company, TCC, and by TCC to Capacite.

Speaker #4: Sure, sir. And for SIDCO also, if you can help with a similar number.

[Analyst] (Nuvama): Sure, sir. For CIDCO also, if you can help with similar numbers.

Vasudev Ganatra: Sure, sir. For CIDCO also, if you can help with similar numbers.

Speaker #2: So, for Sidco, we are targeting—I had given a figure last time of approximately ₹600 crores for the full year—so we do believe that we should be more or less within that hitting range, with some betterment. But the positive surprise will come from NBCC in the current quarter, next quarter, and Q4 as well. The billing momentum has built up over there and, as I explained in my earlier answers, we do expect the revenue to jump from ₹20 to ₹60 crores approximately per month over there from the current month onwards.

Rohit Katyal: CIDCO, we are targeting. I had given a figure last time of approximately INR 600 crore for the full year. We do believe that we should be more or less within that hitting range. With some betterment, but the positive surprise will come from NBCC in the current quarter, next quarter, and Q4 as well. The billing momentum has built up over there, and we do, as I explained in my earlier answers, expect the revenue to jump from INR 20 crore to INR 60 crore approximately per month over there from the current month onwards.

Speaker #4: Okay. And, sir, in NBCC, we have started booking profits for this project.

[Analyst] (Nuvama): NBCC, we have started booking profits for this project?

Vasudev Ganatra: NBCC, we have started booking profits for this project?

Speaker #2: Yeah, yeah, yeah, now it has started booking profits. We are at ₹300 crores certified bill, and we are looking to bill about ₹60 crores further per month for the remainder of the year. Okay, so obviously, we have crossed that 20% threshold, and therefore we are booking the profits as guided for the NBCC project.

Rohit Katyal: Now it has started booking profits. We are at INR 300 crore certified bill, and we are looking to bill about INR 60 crore further per month for the remainder of the year. Obviously, we have crossed that 20% threshold, and therefore, we are booking the profits as guided for NBCC project.

Speaker #4: Sure, sir. And just one last from my side: what is the capex we did in Q1, and what is our target for the full year?

[Analyst] (Nuvama): Sure, sir. Just one last from my side. What is the CapEx we did in Q1 and our target for the full year?

Vasudev Ganatra: Sure, sir. Just one last from my side. What is the CapEx we did in Q1 and our target for the full year?

Speaker #2: For the full year, the target is 193 crores. The capex done in Q1 is 52.26 crores.

Rohit Katyal: For the full year, the target is INR 193 crores. The CapEx done in Q1 is INR 52.26 crores.

Speaker #4: Sure, sir. That's it from my side. I'll join back in the queue.

[Analyst] (Nuvama): Sure, sir. That's it from my side. I will join back in the queue.

Vasudev Ganatra: Sure, sir. That's it from my side. I will join back in the queue.

Speaker #2: Thank you.

Rohit Katyal: Thank you.

Speaker #1: Thank you, ladies and gentlemen. If you wish to ask a question, you may press star and one. A reminder to all participants: please press star and one to ask a question.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star 1. A reminder to all the participants to press star 1 to ask a question. The next question is in the line of Vaibhav Shah from JM Financial. Please go ahead.

Speaker #1: The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.

Speaker #4: Yeah. Sir, first thing on SIDCO—what will be the order backlog for the six buildings? And what will be the same for the seventh building?

Vaibhav Shah: Yeah. Firstly on CIDCO, what will be the order backlog for the sixth building? What will be the same for seventh building?

Speaker #2: So it's not the seventh building. The total square feet to be constructed under the contract is 1 crore 62 lakh square feet. All right, we have received 50% of that, so 50% is the remainder to be handed over. The client has identified a couple of locations which we believe should be handed over to us by next month. So, we should get the entire scope of 162 lakh square feet over the next two quarters including the current quarter. So, in terms of order...

Rohit Katyal: It's not seventh building. The total square feet to be constructed under the contract is 1 crore 62 lakh square feet. All right. We have received 50% of that. 50% is the remainder to be handed over, and the client has identified a couple of locations, which we believe that should be handed over to us by next month. We should get the entire scope of 162 lakh square feet over the next two quarters, including the current quarter.

Vaibhav Shah: Okay. In terms of order value, what will be the order book for sixth buildings and the seventh building?

Speaker #4: What would be the order book for six buildings and the seventh building?

Speaker #2: So the total backlog, so the total order value for the remainder, would be approximately ₹2,000 crores plus escalation, and the current escalation on all the buildings.

Rohit Katyal: The total order value for the remainder would be approximately INR 2,000 crores plus escalations. The current escalation.

Vaibhav Shah: Including all the buildings.

Speaker #2: Sorry?

Rohit Katyal: Sorry?

Speaker #4: Including all the buildings.

Vaibhav Shah: Including all the buildings.

Speaker #2: Whatever balance has to be received, whatever has been received out of that, another 1,000 crores is to be built.

Rohit Katyal: Whatever balance has to be received. Whatever has been received out of that, another INR 1,000 crores to be billed.

Speaker #4: Okay, okay. Sir, secondly, what is our gross debt right now?

Vaibhav Shah: Okay. Sir, secondly, what is our gross debt right now?

Speaker #2: 3500 approximately.

Rohit Katyal: INR 3,500 approximately.

Speaker #4: The outstanding portion, or the entire—are you saying?

Vaibhav Shah: The outstanding portion or the entire reimbursement?

Speaker #2: The outstanding. The outstanding portion including price variation because price variation is approximately 28% as I speak to you that will be between 3200 crores to 3300 crores it can vary depending on the price variation which the company gets currently it is at 28%.

Rohit Katyal: The outstanding portion, including price variation, because price variation is approximately 28% as I speak to you. That will be between INR 3,200 crores or INR 3,300 crores. It can vary depending on the price variation which the company gets. Currently, it is at 28%.

Speaker #4: Okay, and of this 30 to 3,300, what will be for the seventh building? Value?

Vaibhav Shah: Okay. Of this INR 30 to 3,300, what will be for the seventh building value?

Speaker #2: 2500 approximately including escalation.

Rohit Katyal: INR 2,500 approximately including escalation.

Speaker #4: Okay, okay, got it. Sir, secondly, what would be our gross debt right now, and how do you see it going forward by March 2027?

Vaibhav Shah: Okay. Got it. Sir, secondly, what will be our gross debt right now, and how do you see it going forward by March 2027?

Speaker #2: Right, sir. The total gross debt is ₹522 crore. I had given a commentary during the last conference call that, on a yearly basis, it will reduce. This has only increased because approximately ₹150 crore of payments got shifted by 10 days, which obviously have been collected in the current month. So, this should not be viewed on a quarterly basis. On a yearly basis, we will reduce our gross debt and so will we reduce our net debt. Our eight quarters net debt-free target is well on track.

Rohit Katyal: Sir, the total gross debt is INR 522. I have given a commentary during the last conference call that on the yearly basis it will reduce. This has only increased because approximately INR 150 crore of payments got shifted by 10 days, which obviously have been collected in the current month. This should not be viewed on a quarterly basis. On a yearly basis, we will reduce our gross debt, we will reduce our net debt. Our 8 quarters net debt free target is well on track.

Speaker #4: Okay, okay. Sir, lastly, one confusion was there. So, between the consol numbers and standalone numbers, what is the difference in terms of revenue? So, which projects are booked in revenue—is revenue booked in the consol books?

Vaibhav Shah: Okay. Sir, lastly, one confusion was there. Between the consolidated numbers and standalone numbers, what is the difference in terms of revenue? Which projects' revenue is booked in the consolidated books?

Speaker #4: For which project?

Rohit Katyal: The National Speed Highway project is on consolidated basis to our share of revenue. The Capacite Infra and Mutha Group Maldives project is booked also on the consolidated basis. Further, only share of our profit from TCC, that is the MHADA parent company, is booked in the consolidated. Everything else is in standalone.

Speaker #2: So the National Speed Highway project is on a console basis to our share of revenue, and the Capacity Infra and Muta Group Maldives project is also booked on the console basis.

Speaker #2: Further, the profit of only our share of profit from TCC, that is, the MADA parent company, is booked in the consolidated. Everything else is in standalone.

Speaker #4: So MADA revenues won't come in the standalone book?

Vaibhav Shah: MHADA revenues won't come in the standalone book?

Speaker #2: So if the if that would have been the case we would have been having 1000 crores revenue in the quarter but only the only the profit will come in the console not the turnover.

Rohit Katyal: If that would have been the case, we would have been having INR 1,000 crores revenue in the quarter.

Vaibhav Shah: Of MHADA. Got it.

Rohit Katyal: Only the profit will come in the consolidated, not the turnover.

Speaker #4: Okay, okay, got it. Thank you, sir.

Vaibhav Shah: Okay. Got it. Thank you, sir.

Speaker #2: Thank you.

Rohit Katyal: Thank you.

Speaker #1: Thank you. The next question is from the line of Vedant Kabra from AVN Capital. Please go ahead.

Operator: Thank you. The next question is in the line of Vedant Kabra from AVN Capital. Please go ahead.

Speaker #3: Hello, thank you for giving me the opportunity. I just had a couple of questions. Sir, your Q1 commentary flagged the Mumbai water cut as an execution drag.

Vedant Kabra: Hello. Thank you for giving me the opportunity. I just had a couple of questions. Sir, your Q1 commentary flagged the Mumbai water cut as an execution drag. Now looking ahead for this year, in Q3, the Delhi NCR GRAP construction bans are a recurring annual event that spans from November to January for the entire NCR. How do you plan on tackle this and still achieve the 20% top-line growth that you've targeted for this fiscal? Given that we have achieved 7% for Q1.

Speaker #3: So, now, looking ahead for this year, you know in Q3, the Delhi NCR GRAP construction bans are a recurring annual event that span from November to January for the entire NCR.

Speaker #3: So, how do you plan on tackling this and still achieve the 20% top-line growth that we have targeted for this fiscal year? You know, given that we have achieved 7% for Q1.

Speaker #2: So the point is that, sorry, can you...

Rohit Katyal: The point is that Sorry, can you-

Speaker #4: Seven percent we have achieved.

Rohit Katyal: 7% we have achieved.

Speaker #2: Yeah. So the point is that quarter two July has been strong for the company and therefore we gray we you know we derive confidence on the August and September numbers quarter three as I told you at the moment we are we have just started IIT project we have just started yielding from NBCC all right revenue is bound to rise in Sidco and MADA projects and similarly we had announced the downtown project in quarter four of last fiscal the current quarter will give you substantial revenue of close to nearly 55 crores from that project alone which is bound to rise in quarter three quarter four therefore the number of projects which will add meaningful revenue from quarter two onwards and peaking in quarter three and quarter four that gives us substantial confidence of achieving the full year target on consolidated basis.

Rohit Katyal: Yeah. The point is that Q2 July has been strong for the company, and therefore we derive confidence on the August and September numbers. Q3, as I told you, at the moment we have just started IIT project. We have just started yielding from NBCC. Revenue is bound to rise in CIDCO and MHADA projects. Similarly, we had announced the Downtown project in Q4 of last fiscal. The current quarter will give you substantial revenue of close to nearly INR 55 crores from that project alone, which is bound to rise in Q3, Q4. The number of projects which will add meaningful revenue from Q2 onwards and peaking in Q3 and Q4, that gives us substantial confidence of achieving the full-year target on a consolidated basis.

Speaker #3: Okay, sir. So, this Delhi NCR construction ban period will not be impacting any revenue slowdown.

Vedant Kabra: Okay, sir. This Delhi NCR, that construction ban period will not be impacting any revenue slowdown?

Speaker #2: We have factored we have factored an average of 20 days bursts now if it goes to 40 days everyone will suffer but I do believe that the industry is taking adequate steps for that but if the HUI remains at 400 500 then it is anyone's guess but at the moment we have factored 20 days in the current fiscal for the northern India revenue impact due to NGT.

Rohit Katyal: We have factored an average of 20 days ban. If it goes to 40 days, everyone will suffer, I do believe that the industry is taking adequate steps for that. If the AQI remains at 400, 500, it is anyone's guess. At the moment, we have factored 20 days in the current fiscal for the Northern India revenue impact due to NGT.

Speaker #3: Okay sir got it. And sir my second question is on the revenue growth because the revenue growth has slowed steadily right we were at 22% in FY25 and then we were at 12% in FY26 and we are currently at 7% so even though our order book as it a record 13500 odd crores which is about five times our annual sales so the slowdown had started before the water cut issue and bigger issue so sir my question I just wanted to understand from an investor standpoint do we have a bottleneck on execution outside of the labor issue and water issue is it slower revenue recognition because of the shift to 40 plus towers which is now 60% of 62% of the book I just wanted to understand.

Vedant Kabra: Okay, sir. Got it. Sir, my second question is on the revenue growth, because the revenue growth has slowed steadily, right? We were at 22% in FY25, we were at 12% in FY26, and we are currently at 7%. Even though our order book is at a record INR 13,500 odd crores, which is about 5x our annual sales. The slowdown had started before the water cut issue and labor issue. Sir, my question, I just wanted to understand from an investor standpoint, do we have a bottleneck on execution outside of the labor issue and water issue? Is it slower revenue recognition because of the shift to 40 plus towers, which is now 62% of the book? I just wanted to understand.

Speaker #2: No no no no no no no it's not like that sir we have been very open with all our investors and you financial institutions that the order execution or nearly 2000 see for example Sidco 2500 crore I just mentioned to the earlier query 2500 crore yet execution has to start we expect that from next quarter okay we are increasing the revenue of NBCC which was not even 15 crores per month last year we are taking it up to 60 crores from the current quarter already okay current quarter in the sense per month so about 150 crores would come in the current quarter similarly IIT Bombay we couldn't start the work because of tree cutting permissions now these things are unforeseen and therefore my 13500 order book I could have only executed or execution was only happening on 8 to 9000 crore that does not mean that the active order book is not active but as soon as that's an opportunity we suddenly now we have 34 buildings in MADA to execute so obviously that will get reflected in the top line we have already started our works at IIT from next quarter you will see revenue happening in that also and obviously the increase in revenue coming from NBCC lastly great value still has to receive approvals so while the order was booked in quarter four of the last fiscal we have not recognized a penny of revenue from that project maybe a crore or two so again we do believe that quarter two three onwards you will see sizable revenue coming from that so therefore when we say our total order book that includes sites on which the work is yet to begin all right and therefore since now we have a road map available with us that yes from quarter two end and quarter three a lot of additional projects will start giving revenue and sizable at that similarly Vadala of Raymond's okay that will start from quarter two end so you will see the sizable revenue coming in quarter three and quarter four and therefore the confidence of revenue increase comes from that similarly I would request you to look at our CAGR over 22 to 26 and that would be at approximately 18 18% on console basis and if I have given a projection of 20% obviously the CAGR will improve by that that percentage but our goal over the next two years is to maintain that growth rate the order book supports it the current labor strength supports it and obviously our focus on use of the new age technologies will further support it from quarter three quarter four end of the current financial year

Rohit Katyal: No. It is not like that, sir. We have been very open with all our investors and new financial institutions that the order execution on nearly 2,000. CIDCO INR 2,500 crore, I just mentioned to the earlier query. INR 2,500 crore, yet execution has to start. We expect that from next quarter. Okay? We are increasing the revenue of NBCC, which was not even INR 15 crores per month last year. We are taking it up to INR 60 crores from the current quarter already. Okay? Current quarter in the sense, per month. About INR 150 crores would come in the current quarter. Similarly, IIT Bombay, we could not start the work because of tree-cutting permissions. These things are unfreezing. My INR 13,500 order book, I could have only executed, or execution was only happening on INR 8,000 to 16,000 crores.

Rohit Katyal: That does not mean that the order book is not active. As soon as there's an opportunity, suddenly now we have 34 buildings in MHADA to execute. Obviously, that will get reflected in the top line. We have already started our works at IIT. From next quarter, you will see revenue happening in that also. And obviously, the increase in revenue coming from NBCC. Lastly, Great Value still has to receive approvals. While the order was booked in Q4 of the last fiscal, we have not recognized a penny of revenue from that project. Maybe a crore or two. Again, we do believe that Q2 or three onwards, you will see sizable revenue coming from that. Therefore, when we say our total order book, that includes sites on which the work is yet to begin. All right?

Rohit Katyal: Therefore, since now we have a roadmap available with us that, yes, from Q2 end and Q3, a lot of additional projects will start giving revenue, and sizable at that. Similarly, Wadala of Raymond's, okay? That will start from Q2 end. You will see the sizable revenue coming in Q3 and Q4. Therefore, the confidence of revenue increase comes from that. Similarly, I would request you to look at our CAGR over 2022 to 2026, and that would be at approximately 18% on consolidated basis. If I have given a projection of 20%, obviously the CAGR will improve by that percentage. Our goal over the next two years is to maintain that growth rate.

Rohit Katyal: The order book supports it, the current labor strength supports it, and obviously, our focus on use of the new age technologies will further support it from Q3, Q4, end of the current financial year.

Speaker #3: Okay, okay, sir. Got it. That brings immense clarity. Thank you so much.

Vedant Kabra: Okay, sir. Got it. That brings immense clarity. Thank you so much.

Speaker #1: Thank you. The next question is from the line of Pratik Bhandari from Art Ventures. Please go ahead.

Operator: Thank you. The next question is from the line of Pratik Bhandari from Ark Ventures. Please go ahead.

Speaker #2: Yeah hi sir thanks for the opportunity just wanted to get a sense of the current quarter of the last 40 days that have gone by have you seen some sort of stabilization in the commodity prices see the commodity prices are stable over the last three months or four months the steel prices went down by 20% have increased by 3% but the concern is over the non-ferrous aluminum copper the price increase which at the moment is reflecting from the CPWD is approximately 14% well on the ground level the raw material itself let's say raw material is 30% of the entire NAP so if that has increased by 40% it is 12 to 14% only on the material part not to speak about the labor so I so it is stabilized but the inflation is yet to catch up with the price rise okay inflation from inflation from office of economic advisor for relative commodity got it and secondly on the capex you last time guided for capex for FY25 to be for 27 to be around 155 crores that was for aluminum extrusion and now you have mentioned it to be 193 crores so can you give a sense as to where is the difference flowing so we have taken we are expecting certain orders in this quarter and therefore we have accounted for that that you can just take the bifurcation we are looking at 66 crores of plant and machinery we're looking at the aluminum extrusions and related homework of 121 crores for the full year and information technology would be 5.43 crores so we are currently on the process of implementing SAP and we should go live in the quarter three of the current fiscal it is important for the organization so this is a bifurcation so 150 crore for only homework stands at 121 crore plant and machinery will increase because we are currently executing more than 15 buildings and super high rise segment and while we have our own equipment substantial at that still the requirement of high-speed lifts for passenger and hoist passenger and materials will be there similarly we will we are bidding for composite buildings which involves steel structures like the IIT Bombay which will require heavier cranes so these things cannot be emphasized only in March so we have booked we are very confident of exceeding our half yearly target in the current quarter and with the L1 position alone okay so we do believe that this equipment increase is directly proportional to that however given the equipment increase our repayment of term loans for the current year will stand at 102 crores so therefore the debt position due to the equipment purchase may increase by 45 to 50 crores nothing more than that on net basis similarly on the working capital front like we reduce 40 days last year we expect a similar reduction in the whole year this current financial year do not please ask me March September December or but we will definitely talk to you for March 27 and the March 27 working capital days will be further improved to March 26 and the overall debt position will be lower yes the term loan obviously because of substantial equipment purchase will be higher by net whatever new loans we take and whatever repayments we do by approximately 45 to 50 crores got it and just one last question of the audience for that we have received during the quarter can you give us split as to is it from public or private the first quarter was totally private the second quarter we see equivalent coming from public and we are under negotiations with certain seriously high level quality private sector and we are very hopeful of converting some of them in the current quarter so yes as a therefore I told you there is no reason why we should not cross the upper band so our band of order inflow is 4500 to 5000 crores we see crossing 50% of the higher end of the band in quarter two itself all right thanks a lot thank you

Pratik Bhandari: Yeah. Hi, sir. Thanks for the opportunity. Just wanted to get a sense of the current quarter of the last 40 days that have gone by. Have you seen some sort of stabilization in the commodity prices?

Rohit Katyal: See, the commodity prices are stable over the last 3 months or 4 months. The steel prices went down by 20%, have increased by 3%. The concern is over the non-ferrous aluminum, copper. The price increase, which at the moment is reflecting from the CPWD, is approximately 14%, where on the ground level, the raw material itself, let's say raw material is 30% of the entire MEP. If that has increased by 40%, it is 12% to 14% only on the material part, not to speak about the labor. It has stabilized, but the inflation is yet to catch up with the price rise.

Pratik Bhandari: Okay.

Rohit Katyal: Inflation from Office of Economic Adviser for relative commodity.

Pratik Bhandari: Secondly, on the CapEx, you last time guided for CapEx for FY27 to be around INR 165 crores. That was for aluminum extrusion. Now you have mentioned it to be INR 193 crores. Can you give a sense as to

Rohit Katyal: Yeah

Pratik Bhandari: where is the difference flowing?

Rohit Katyal: We are expecting certain orders in this quarter, therefore we have accounted for that. You can just take the bifurcation. We are looking at INR 66 crores of plant and machinery. We are looking at the aluminum extrusions and the related formwork of INR 121 crores for the full year. Information technology would be INR 5.43 crores. We are currently on the process of implementing SAP, and we should go live in Q3 of the current fiscal. It is important for the organization. This is a bifurcation. INR 150 crore for only formwork stands at INR 121 crore. Plant and machinery will increase because we are currently executing more than 15 buildings in super high-rise segment. While we have our own equipment, substantial at that, still the requirement of high speed lifts for passenger and materials will be there.

Rohit Katyal: Similarly, we are bidding for composite buildings, which involve steel structures like the Indian Institute of Technology Bombay, which will require heavier cranes. These things cannot be envisaged only in March. We are very confident of exceeding our half yearly target in the current quarter, and with the L1 position alone. Okay. We do believe that this equipment increase is directly proportional to that. However, given the equipment increase, our repayment of term loans for the current year will stand at INR 102 crores. Therefore, the debt position due to the equipment purchase may increase by INR 45 to 50 crores, nothing more than that on net basis. Similarly, on the working capital front, like we reduced 40 days last year, we expect a similar reduction in the whole year this current financial year. Do not please ask me March, September, December.

Rohit Katyal: We will definitely talk to you for March 2027, and the March 2027 working capital days will be further improved to March 2026, and the overall debt position will be lower. Yes, the term loan, obviously, because of substantial equipment purchase, will be higher by net, whatever new loans we take and whatever repayments we do, by approximately INR 45 to 50 crores.

Pratik Bhandari: Got it. Just one last question. Of the order inflow that we have received during the quarter, can you give a split as to is it from public or private?

Rohit Katyal: Q1 was totally private. Q2, we see equivalent coming from public, and we are under negotiations with certain seriously high-level quality private sector. We are very hopeful of converting some of them in the current quarter. Yes, as therefore I told you, there is no reason why we should not cross the upper band. Our band of order inflow is INR 4,500 to 5,000 crores. We see crossing 50% of the higher end of the band in Q2 itself.

Pratik Bhandari: All right. Thanks a lot.

Rohit Katyal: Thank you.

Speaker #1: Thank you. The next question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.

Operator: Thank you. The next question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.

Speaker #4: Yes, good afternoon, sir. So this ₹6.5 crore monetization value—where is it getting captured? Is it in the other income?

Dhananjay Mishra: Yeah. Good afternoon, sir. The INR 6.5 crore monetization value, where it is getting captured? In the other income?

Speaker #2: In the other income—sorry, can you repeat question six?

Rohit Katyal: In the other income. Sorry, can you repeat the question? Six point?

Speaker #4: ₹5 crore realized from non-core asset sale.

Dhananjay Mishra: INR 5 crore realized from non-core asset sale.

Speaker #2: Yeah, it is getting reflected in the profit—the profit is getting reflected in the other income, other income.

Rohit Katyal: Yeah. The profit is getting reflected in.

Dhananjay Mishra: Other income.

Rohit Katyal: Other income.

Speaker #4: Okay, that is part of ₹10 crore, absolutely. So therefore, if you see overall, on the full-term basis last year, there was substantial other income which was booked, and the target for the full year remains unchanged. And for SIDCO, you said outstanding order for the six sites is ₹1,000 crore, and ₹2,500 crore is for the seventh site.

Dhananjay Mishra: Okay. That is part of INR 10 crore other income.

Rohit Katyal: Absolutely. Therefore, if you see overall on the full-term basis last year, there was substantial other income which was booked. The target for the full year remains unchanged.

Dhananjay Mishra: For CIDCO, you said outstanding orders of the 6th site is INR 1,000 crore and INR 2,500 crore is for the 7th site.

Speaker #2: Not seven sites, the remainder area to be handed over is ₹2,000 crores plus escalation, so ₹2,500 crores. In our order book, we have considered ₹2,000 crores, but as soon as those locations are handed over—approximately four locations encompassing the seventh location, which people know—however, we will give you absolute clarity on that in the Q2 earnings conference call. But we do expect a couple of locations to be handed over within the current quarter.

Rohit Katyal: Not 7th site. Remainder area to be handed over is INR 2,000 crore plus escalation, INR 2,500. In our order book, we have considered INR 2,000, but as soon as that locations are handed over, approximately four locations encompassing The 7th location which people know. However, we will give you absolute clarity on that in Q2 earnings conference call, we do expect a couple of locations to be handed over within the current quarter.

Speaker #4: And can you also talk about the big pipeline for this financial year, and do you see any opportunity in this Mumbai 3.0 we are talking about? For our— I will not be able to take names, obviously, you can understand due to restrictions, but we have an identified big pipeline of ₹22,000 crores on the public side and approximately ₹5,000 crores of targeted bid pipeline in the private sector for Q2 and Q3. Q3 will be uploaded by the end of Q2, that is the process we follow, because just leads do not become bid pipeline. What tenders are firmly planned and which have received administrative approvals from various government departments, those are the projections which we can take in our bid pipeline. So, that is the opportunity. As far as capacity is concerned, it may get added or deleted depending on finally when the NIT is published by the government, but we do see a very strong pipeline both in government and private sector. Okay sir, thank you. Thank you.

Dhananjay Mishra: Can you also talk about the bid pipeline for this financial year? Do you see any opportunity in this Mumbai 3.0 we are talking about for our scope of work?

Rohit Katyal: I will not be able to take names, obviously, you can understand, due to restrictions. We have an identified bid pipeline of INR 22,000 crores in the public side, and approximately INR 5,000 crores of targeted bid pipeline in the private sector for Q2 and Q3. Q3 will be uploaded by the end of Q2. That is the process how we follow because just leads does not become bid pipeline. What tenders are firmly planned and which have received administrative approval from various government departments, those are the projections which we can take in our bid pipeline. That is the opportunity as far as Capacite is concerned. It may get added or deleted depending on finally when the NIT is published by the government. We do see a very strong pipeline both in government and private sector.

Dhananjay Mishra: Okay. Okay, sir. Thank you. Thank you.

Speaker #1: Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is from the line of Gunat Singh from Cyclical PMS. Please go ahead.

Operator: Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is on the line of Kunal Singh from Cyclical PMS. Please go ahead.

Speaker #5: Hi sir, thank you for this opportunity. My question is regarding the contract assets. If we look at our peers like Ahluwalia or PSP, contract assets as a percentage of revenues are about 14 to 15 percent, whereas ours are about 50 to 55 percent. Can you help me understand why our contract assets are much higher than theirs, and what percentage of these are normal unbilled revenues versus how much of them are under stress?

Kunal Singh: Hi, sir. Thank you for this opportunity. My question is regarding the contract assets. If we look at our peers like Ahluwalia or PSP, contract assets as a percentage of revenues are about 14% to 15%, whereas ours are about 50% to 55%. Can you help me understand why are our contract assets much higher than them, and what percentage of these are normal unbilled revenues versus how much of them are under stress?

Speaker #2: So the stress has already been provided for sir now I would like to just clarify I do not have the from where this 15 percent and 14 percent has come but contract assets plus debtors for our company stands at approximately 78 percent to the top line as on 31st March the same percentage for my competition is between 56 days to 65 days if you remember during COVID after COVID our 325 crores had got held up and this figure had shooted to 120 percent to the top line so there is a 45 percent betterment over the last three four years as far as contract assets are concerned and we during our commentary during the quarter four you know earnings call had said that we will be in the leader leadership position better than most of our competition without taking names over the next eight quarters so you will see improvement in the contract assets and debtor realization both like you saw last year of 40 days in networking capital and the reduction of 43 days to be precise and similarly the percentage to top line of contract assets and debtors also coming down you continue to see on quarter to quarter basis but there will be a very positive surprise in March FY 27 and we should be in a leadership position by March 28th what we had in March 19 prior to COVID

Rohit Katyal: The stress has already been provided for, sir. I would like to just clarify, I do not have the, from where this 15% and 14% has come, but contract assets plus debtors for our company stands at approximately 78% to the top line as on 31 March. The same percentage for my competition is between 56 days to 65 days. If you remember, during COVID, after COVID, our INR 325 crore had got held up, and this figure had shooted to 120% to the top line. There is a 45% betterment over the last three, four years as far as contract assets are concerned. We, during our commentary during the Q4 earnings call, had said that we will be in the leadership position better than most of our competition, without taking names, over the next eight quarters.

Rohit Katyal: You will see improvement in the contract assets and debtor realization both, like you saw last year of 40 days in net working capital, and the reduction of 43 days to be precise. Similarly, the percentage to top line of contract assets and debtors also coming down. You will continue to see on quarter-to-quarter basis, but there will be a very positive surprise in March FY27, and we should be in a leadership position by March FY28. What we had in March 2019, prior to COVID.

Speaker #4: Got it sir so I mean unbuilt revenues plus receivables for them are between 35 to 45 percent of revenues but so I mean what efforts or what steps are we taking to reduce these contract assets is it that we will be changing our accounting standards or is it that it's I mean stuck by I mean money is stuck by a few clients which who will be expected to clear them and if you can help us understand how much of these contract assets are over one year two years three years so we can get an idea if I mean this is regular unbuilt revenues or it's I mean something which has not been cleared since a long time

Kunal Singh: Got it, sir. Unbilled revenues plus receivables, they are between 35% to 45% of revenues. What efforts or what steps are we taking to reduce these contract assets? Is it that we will be changing our accounting standards, or is it that money is stuck by a few clients which we will be expected to clear them? If you can help us understand how much of these contract assets are over one year, two years, three years, so we can get an idea if this is regular unbilled revenues or it is something which has not been cleared since a long time.

Speaker #2: So let me just give you a gist. It's a very long answer. While the data is available, you can connect with our investor relations team immediately after the call. But now, for example, in SIDCO, we have a ₹300 crore unbilled revenue, obviously because of the work done and the milestone payment. Similarly, we have on a ₹6,500 crore project nearly ₹200 crore of unbilled revenue on MADA. These figures may be off by 5–10% because I'm not having the details in front of me. So, we have seen substantial reduction in Raymond's, we have seen some increase in NBCC, we have seen reduction on absolute basis in MADA. So, the entire data is available, and since these are all ongoing projects where bills are getting certified every month on month and payments are getting received, so you will see—thank you—these are cyclical. Nothing is above one year or two years, three years, okay? So, everything is over the milestone payments. The milestone payments are getting billed. The current month certification of SIDCO will be in excess of ₹60 crore; the revenue is ₹35 or ₹40 crore. So, this additional ₹20 crore is nothing but the milestone is getting billed. All right. So, two final bills of two locations are also going to go to the client in the current quarter, so obviously you will see further certification happening. So, these are nothing but milestones getting converted. However, I would urge you to see the overall contract assets of seven or eight players in our sector as a percentage to the top line, and you will see the drastic improvement which Capacite has made over the last three years.

Rohit Katyal: Let me just give you a gist. It's a very long answer. While the data is available, you can connect with our investor relations team immediately after the call. Now, for example, CIDCO, we have a INR 300 crore unbilled revenue, obviously because of the work done and the milestone payment. Similarly, we have on a INR 6,500 crore, nearly INR 200 crore of unbilled revenue on MHADA. These figures may be off by 5% to 10%, because I'm not having the details in front of me. We have seen substantial reduction in Raymond Realty. We have seen some increase in NBCC. We have seen the reduction on an absolute basis in MHADA. The entire data is available, and since these are all ongoing projects where bills are getting certified every month on month and payments are getting received. You will see

Kunal Singh: Thank you

Rohit Katyal: These are cyclical. Nothing is above one year, two years, or three years. Okay? Everything is over the milestone payments. The milestone payments are getting billed. The current month certification of CIDCO will be in excess of INR 60 crore. The revenue is INR 35 or INR 40 crore. This additional INR 20 crore is nothing but the milestones getting billed. All right. Two final bills of two locations are also going to go to the client in the current quarter. Obviously, you will see further certification happening. These are nothing but milestones getting converted. However, I would urge you to see the overall contract assets of seven, eight players in our sector as a percentage to the top line, and you will see the drastic improvement which Capacite Infraprojects has made over the last three years.

Speaker #4: That's great, sir. So, I mean, what is the aspirational exit contract asset for FY27? And I mean, should we consider this Rs 1,000 crore as a normal BAU contract asset, or do we aspire to come down—and to what level?

Kunal Singh: That's great, sir. What is the aspirational exit contract asset for FY27? Should we consider this INR 1,000 crore as a normal BAU contract assets, or we aspire to come down? To what level?

Speaker #2: Obviously, we aspire to come down, but at the same time, if you remember that on an ₹1,800 crore revenue, this was the contract assets; on ₹2,700 crore, this was the contract assets. So, obviously, on ₹3,200 crore revenue or ₹3,150 crore revenue also, the contract assets would be this or a tad lower. So we are well on track to reduce it as a percentage to the top line. Absolute number we can always discuss offline because I don't have it ready in front of me.

Rohit Katyal: Obviously, we aspire to come down. At the same time, you should remember that on INR 1,800 crore revenue, this was the contract assets. On INR 2,700 crore, this was the contract assets. Obviously on INR 3,200 crore revenue or INR 3,150 crore revenue, also the contract assets would be this or a tag lower. We are well on track to reduce it as a percentage to the top line. Absolute number, we can always discuss offline because I don't have it ready in front of me.

Speaker #4: Got it, sir. Thank you very much, and I wish you all the best.

Kunal Singh: Got it, sir. Thank you very much. I wish you all the best.

Speaker #2: Thank you very much. Nice question.

Rohit Katyal: Thank you very much. Nice question.

Speaker #3: Thank you. The next question is from the line of Rohin Gupta from RKG Online Services. Please go ahead.

Operator: Thank you. The next question is from the line of Rohit Gupta from RKG Online Services. Please go ahead.

Speaker #4: So, I just wanted to clarify regarding BDD MADA. Are unexecuted order books still remaining at 3,000? That will be on...

Rohit Gupta: Sir, I just wanted to clarify you, regarding BDD MHADA. Our unexecuted order book still remains INR 3,000 crore. That will be on.

Speaker #2: I'll explain to you it's a very long answer I told you that the order exec our portion is 35 percent on the on the parent company level because we are 35 percent we cannot consolidate the revenue we can only take our portion of profit what we book as revenue is as a subcontractor to our own parent company that is taken in the standalone revenues all right over the next quarters years you will see the profit or share from TCC growing that is the consolidation profit growing and the revenue also as a subcontractor growing our share is 35 percent and we will be executing over the next six seven years this backlog of so to be clear with you the current certification of TCC with MADA is in excess of 2000 crore and if the revised order book including price variation is 16 17000 crore you can establish what is the backlog and 35 percent of that is attributable to capacity

Rohit Katyal: I'll explain to you. It's a very long answer. I told you that our portion is 35%.

Rohit Gupta: Okay.

Rohit Katyal: On the parent company level. Because we are 35%, we cannot consolidate the revenue. We can only take our portion of profit. What we book as revenue is as a subcontractor to our own parent company. That is taken in the standalone revenues. All right? Over the next quarters, years, you will see the profit or share from TCC growing. That is the consolidation profit growing. And the revenue also as a subcontractor growing. Our share is 35%, and we will be executing over the next six, seven years, this backlog of To be clear with you, the current certification of TCC with MHADA is in excess of INR 2,000 crore. And if the revised order book, including price variation, is INR 16,000 crore, INR 17,000 crore, you can establish what is the backlog, and 35% of that is attributable to Capacite.

Speaker #4: Okay got it

Rohit Gupta: Okay. Got it.

Speaker #2: Thank you

Rohit Katyal: Thank you.

Speaker #3: Thank you, ladies and gentlemen. If you wish to ask a question, you may press star and one. A reminder to all the participants: please press star and one to ask a question. The next question is from the line of Deepak Bodhar from Sapphire Capital. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.

Speaker #4: I'm audible sir

Deepak Poddar: Am I audible, sir?

Speaker #2: Yes sir please go ahead

Rohit Katyal: Yes, sir. Please go ahead.

Speaker #4: Yeah, thank you very much for this opportunity, sir. So, we just wanted to understand regarding the provisioning—I mean, do you expect it to recur? Because in the last two quarters, we have been doing ₹10 crores per quarter in terms of provisioning. So, how should we... yeah.

Deepak Poddar: Yeah. Thank you very much for this opportunity, sir. Just wanted to understand on the provisioning. Do you expect to again reoccur? Because last 2 quarters you have been doing INR 10 crores per quarter, right, in terms of the provisioning.

Speaker #2: So, impact has happened subsequent to February. Okay, I don't see any provisioning coming in in quarter two. All right, we will have to wait for quarter three and see how the escalation indices pan out. Yes, in quarter four of last fiscal it was necessary because suddenly after the geopolitical tensions, we did see a very serious upsurge in non-ferrous metals, and that impact would have happened in quarter one, quarter two, and quarter three of the current fiscal. All right, and similarly, we have not seen softening of the non-ferrous commodities, neither have we seen the price escalation matching up with that increase that warranted this additional ₹10 crore of provisioning in the current quarter. Therefore, I do not see any further provisioning in quarter two onwards. However, we shall discuss and give you a confirmation about quarter three in the next earnings call.

Rohit Katyal: Impact has happened subsequent to February. Okay? I don't see any provisioning coming in in Q2. All right? We will have to wait for Q3, how the escalation indices pan out. Yes, in Q4 of last fiscal was necessary because suddenly after the geopolitical tensions, we did see a very serious upsurge in non-ferrous metals, and that impact would have happened in Q1, Q2, Q3 of the current fiscal. All right? Similarly, we have not seen softening of the non-ferrous commodities. Neither have we seen the price escalation matching up with that increase. That warranted this additional INR 10 crores of provisioning in the current quarter, and therefore, I do not see any further provisioning in Q2 onwards. However, we shall discuss and give a confirmation about Q3 in the next earnings call.

Speaker #4: Okay, so this provisioning is largely because of the non-ferrous price escalations, right?

Deepak Poddar: Okay. This provisioning is largely because of the non-ferrous price escalations, right?

Speaker #2: Absolutely absolutely

Rohit Katyal: Absolutely.

Deepak Poddar: And then-

Speaker #4: And you have proper we have a nearly 60 55 60 percent of our business coming from public sector you have electromechanical works in that and you have obviously sizable aluminum foam work which has to be purchased when it purchases then you have notional debit of rent or in your terminology depreciation which happens so all these impacts if the purchase price has gone it has to get impacted somewhere or the other Correct correct and and and how are we saying that majority of it can get reversed in third quarter and fourth quarter what is the thought process yeah so till March the price variation did not move so if you compare last June to this June the price variation has been close to eight eight and a half percent correct which was not even two percent till March all right so suddenly in April May the inflation for non-food items I'm talking referring to non-food items has moved up similarly at the same time the June did not see a big tick and therefore these need for provisioning however we do believe that true price will get reflected over the next quarter or two and therefore a sizable portion of this provisioning obviously it I'm giving you you know a clear cut disclaimer we do believe a substantial portion of this will get reversed with whatever data that are available over the last seven eight years period concerning the WPI and commodity linked inflation numbers Okay okay understood and just one last clarification when we say beta margin of 16 17 percent we are excluding the other income here or it's it's excluding otherwise both of us will be happy Okay okay excluding okay okay that would be to my side wish you all the best thank you thank you very much

Rohit Katyal: Because you have copper. We have nearly 55%, 60% of our business coming from public sector. You have electromechanical works in that, and you have obviously a sizable aluminum formwork which has to be purchased. When it purchases, you have a notional debit of rent or in your terminology, depreciation, which happens. All these impacts, if the purchase price has gone, it has to get impacted somewhere or the other.

Deepak Poddar: Correct. How are we saying that majority of it can get reversed in Q3 and Q4? What is the thought process behind that?

Rohit Katyal: Yeah. Till March, their price variation did not move. If you compare last June to this June-

Rohit Katyal: the price variation has been close to 8%, 8.5%.

Deepak Poddar: Okay.

Rohit Katyal: Which was not even 2% till March. All right? Suddenly in April, May, the inflation for non-food items, I'm referring to non-food items, has moved up. Similarly, at the same time, June did not see a big tick and therefore this need for provisioning. However, we do believe the true price will get reflected over the next quarter or two, and therefore a sizable portion of this provisioning, obviously I'm giving you a clear-cut disclaimer. We do believe a substantial portion of this will get reversed with whatever data are available over the last seven, eight years period concerning the WPI and commodity-linked inflation numbers.

Deepak Poddar: Okay. Understood. Just one last clarification. When we say EBITDA margin of 16% and 17%, we are excluding the other income here, or it's included?

Rohit Katyal: Excluding. Otherwise, both of us will be happy.

Deepak Poddar: Okay. Excluding. Okay. That would be it from my side. Wish you all the best. Thank you.

Rohit Katyal: Thank you very much.

Speaker #3: Thank you. A reminder to all the participants to press star and one to ask a question. The last question is from the line of Rahul Kumar from Vaikariya Fund. Please go ahead.

Operator: Thank you. A reminder to all the participants to press star and one to ask a question. The last question is from the line of Rahul Kumar from Vaikarya Fund. Please go ahead.

Speaker #4: Yeah, hi, thanks. So, just carrying forward Deepak's question, actually this is just for my understanding: this extra provision that you have created, is this for any specific project or is it for the revenues which you have booked in the March and June quarters?

Rahul Kumar: Yeah, hi. Thanks. Just carrying forward Deepak's question actually, this is just for understanding, but this extra provision which you have created, is this for any specific project or is it for the revenues which you have booked in Q4 and Q1?

Speaker #2: No no no this extra provisioning is for materials which have to be purchased over the next four quarters where we believe at the current state situation the escalation would not cover up the cost for example currently in NBCC we are at an escalation of six percent we don't believe that six percent will cover the entire cost point number one it is basically referring to the government contract because in private sector we do only shell and core so there is no electromechanical business over there similarly if you look at the aluminum windows which we are fixing in all the government project the price has gone up a substantial portion of that is currently under coverage of price variation but going forward if it does not move the way we perceive it should move then perception cannot make us prudent sorry laid back that we should not provide now and then provide suddenly in quarter three and quarter four so if you see that the escalation has caught up with the price at which it is being purchased you will see reversals in quarter three and quarter four that is what I meant

Rohit Katyal: No. This extra provisioning is for materials which have to be purchased over the next four quarters, where we believe at the current situation, the escalation would not cover up the cost. For example, currently in NBCC, we are at an escalation of 6%. We don't believe that 6% will cover the entire cost. Point number one, it is basically referring to the government contracts because in private sector, we do only shell and core. There is no electromechanical business over there. Similarly, if you look at the aluminum windows, which we are fixing, in all the government projects, the price has gone up. A substantial portion of that is currently under coverage of price variation.

Rohit Katyal: Going forward, if it does not move the way we perceive it should move, then perception cannot lay back that we should not provide now and then provide suddenly in Q3 and Q4. If you see that the escalation has caught up with the price at which it is being purchased, you will see reversals in Q3 and Q4. That is what I meant.

Speaker #4: Okay, okay, so just to summarize: this 20 crores is the potential, you know, exposure to this inflation for the projects which are impacted by this commodity inflation, which are the complete impacted ones.

Rahul Kumar: Okay. Just to summarize, this INR 20 crore is the potential exposure to this inflation for the projects which are impacted by this commodity inflation.

Rohit Katyal: Which are partially impacted, where the escalation at the moment is not covering the total increase.

Speaker #2: where the escalation at the moment is not covering the total increase.

Speaker #4: Yeah, yeah, but for the, you know, for the completion of these projects, let's say, over the next three to four quarters...

Rahul Kumar: Yeah. For the completion of these projects, let's say over the next 3, 4 quarters.

Speaker #2: Yes so we can all we cannot foresee beyond three quarters at best four quarters to the best of our information taking into consideration the price increases these provisions have been made and if the if if if the facts are in favor of the organization you will see reversal in quarter three and if the facts continue there is easing of the geopolitical tensions and the prices actually fall then it would be a complete reversal but I wouldn't like to you know comment anything strongly on that but we do expect some reversals to happen as I explained earlier

Rohit Katyal: Yeah, we cannot foresee beyond three quarters, at best four quarters. To the best of our information, taking into consideration the price increases, these provisions have been made. If the facts are in favor of the organization, you will see reversal in Q3. If the facts continue, there is easing of the geopolitical tensions, and the prices actually fall, then it would be a complete reversal. I wouldn't like to comment anything strongly on that, but we do expect some reversals to happen, as I explained earlier.

Speaker #4: Understood understood just last question on this working capital I think you mentioned that you know we want to be in a debt free in next eight quarters from now net debt free Yeah net debt free right but let's say if we think of you know March 27 this year this fiscal and so last year we had reduced the working capital by I think 40 odd days right where do we want to you know see as a medium term target for the you know this this year end where do we want to end up

Rahul Kumar: Understood. Just last question on this working capital. I think you mentioned that you want to be net debt-free in next eight quarters from now.

Rohit Katyal: Net debt-free.

Rahul Kumar: Yeah, net debt-free. Right. Let's say, if we think of March 2027 this fiscal. Last year, we had reduced the working capital by, I think, 40 odd days. Right? Where do we want to see as a medium-term target for this year end? Where do we want to end up?

Speaker #2: See I'll just tell you sir from 2013 till 2020 our net working capital was between 56 to 72 days all right yeah net working capital net working capital is the overall impact of reduction of contract assets more receivables getting converted net cash flow position from operations so you saw last year the cash flow improvement from 50 crores to 250 crores approximately give and take 10 crores all right we expect that momentum to continue and therefore these projections and ideally I would like to see us ourselves at the pre-COVID situation where at which time our 325 crores was stuck today we have bought that figure down to 150 and we have a target for the current year of 50 crores also we have achieved our target of bettered last year and we are hopefully on track for achieving that in the current year as well so all these realizables which come always directly impact the networking capital contract assets in a positive way so since we reduced last year by 40 days we expect if not that much at least by at least 25 30 days to happen in the current financial year also

Rohit Katyal: I'll just tell you, sir, from 2013 till 2020, our net working capital was between 56 to 72 days. All right?

Rahul Kumar: Yeah.

Rohit Katyal: Net working capital. Net working capital is the overall impact of reduction of contract assets, more receivables getting converted, net cash flow position from operations. You saw last year the cash flow improvement from INR 50 crores to INR 250 crores, approximately, give or take INR 10 crores. All right? We expect that momentum to continue, therefore these projections. Ideally, I would like to see ourselves at the pre-COVID situation, at which time our INR 325 crores was stuck. Today, we have brought that figure down to INR 150 or thereabout, and we have a target for the current year of INR 50 crores also. We have achieved our target or better last year, and we are hopefully on track for achieving that in the current year as well. All these realizables which come always directly impact the net working capital contract assets in a positive way.

Rohit Katyal: Since we reduced last year by 40 days, we expect, if not that much, at least 25, 30 days to happen in the current financial year also.

Speaker #4: Okay okay and rest by you know FY 28 we will end up at so absolutely so the industry has to set up I believe your analyst like you all have to set up whether you all would like to compare the contract assets and plus debtors excluding retention to turnover or whether you would like to monitor the networking capital so whatever you all say we will put it in our company's investor presentation every quarter we'll be very happy to be as transparent as possible Yes yeah okay understood perfect thanks

Rahul Kumar: Okay. Rest by FY28 will end up as-

Rohit Katyal: Absolutely, sir. The industry has to set up, I believe, your analysts, like you all have to set up whether you all would like to compare the contract assets and plus with debtors excluding retention to turnover, or whether you would like to monitor the net working capital. Whatever you all say, we will put it in our company's investor presentation every quarter. We will be very happy to be as transparent as possible.

Rahul Kumar: Okay. Understood. Perfect. Thanks.

Speaker #2: Thank you

Rohit Katyal: Thank you.

Speaker #3: Thank you. As I see no further questions from the participants, I now hand the conference over to Mr. Rohit Katial for closing comments.

Operator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Rohit Katyal for closing comments.

Speaker #2: I would like to thank all of you again for joining on this call today. We hope we have been able to address your queries and provide some insights into our performance and future outlook. If you have any further questions or require additional information, please feel free to reach out to our investor relations team. Thank you, and thank you for your time and continued support. Bye-bye.

Rohit Katyal: I would like to thank all of you again for joining on this call today. We hope we have been able to address your queries and provide some insights into our performance and future outlook. If you have any further questions or require additional information, please feel free to reach out to our investor relations team. Thank you for your time and continued support. Bye-bye.

Operator: On behalf of Capacite Infraprojects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Browse all earnings call transcripts

Q1 2027 Capacite Infraprojects Ltd Earnings Call

Request TrialDemo

Capacite Infraprojects

Earnings