Q1 2027 G R Infraprojects Ltd Earnings Call
Speaker #1: Presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touchstone phone. Please note that this conference is being recorded.
Speaker #1: From the management, we have Mr. Ajendra Kumar Agarwal managing director, Mr. Anand Rati group CFO, and Mr. Ankit Maheshwari deputy CFO. I now hand the conference over to Mr. Parikshit Khandpal, from HDFC Securities.
Speaker #1: Thank you, and over to you, sir.
Speaker #2: Oh, thank you, Alaric. So, I'll just hand over the call to the management without taking much time. So, Ajendra ji, we'll start the proceedings with a brief overview of the industry, followed by our financial presentation by our IPG and Ankit.
Speaker #2: Over to you, sir.
Speaker #3: Thank you. Parikshit ji, good afternoon, ladies and gentlemen. And a warm welcome to the Q1, FY27 earnings conference call of G R Infraprojects Ltd. Thank you for taking the time to join us today.
Speaker #3: I'm joined on this call by Anand Rati, Chief Financial Officer, and Ankit Maheshwari, Deputy CFO of the company. I will begin by sharing an overview of our financial and operational performance during the quarter.
Speaker #3: Along with our prospective on infrastructure sector, thereafter Ankit ji will take you through the financial performance in detail, following which we will open the floor for questions.
Speaker #3: During Q1, FY27, the company recorded revenue from operations of approximately Rs. 2,423 crore. Representing a growth of 32.71 compared to corresponding quarter of the previous financial year on standalone basis.
Speaker #3: Adjusted EBITDA margin stood at 11.01% for the quarter, as against 12.17% in the corresponding period last year. During the year, the company maintained a debt-equity ratio to 0.03, which is continued to remain among the best in the sector.
Speaker #3: As of 1 July, 2026, our order book stands at approximately Rs. crore, further bids aggregating to approximately Rs. 32,000 crore are yet to be opened.
Speaker #3: During the quarter, PCOD of Amritsar Bhatinda in Punjab and Yamuna Bridge projects in UP has been received as on date appointed date of 3 projects, amounting to Rs.
Speaker #3: 7,250 crore are still awaited. I would like to reiterate that the company's growth strategy is not limited to the road sector alone, we continue to see growing opportunity across metro railway, power transmission, logistics, and warehousing tunnel battery energy storage system, telecom infrastructure, and oil and gas sectors.
Speaker #3: Considering that, we believe greater participation of private capital supported by improved long-term financing mechanism and clear concession structure shall support the expansion of infrastructure sector and create additional opportunity for experienced EPC players.
Speaker #3: While the pace of project award may vary across sector, we remain positive on the overall infrastructure outlook for India. The country continues to have a significant long-term infrastructure requirement, supported by sustained public investment and evolving private participation.
Speaker #3: Let me know briefly touch upon the key sector developments. In transportation sector, the transportation sector continues to present a strong opportunity with an overall pipeline of around 3.85 lakh crores comprising approximately 78% of highway, 16% in railway, and 16% in metro.
Speaker #3: The government is also working to revive private sector participation in highway development through a new toll-cum-annuity model. Combining features of BOT and HAM, the proposed framework would provide 10% to 25% upfront government support for project requiring higher levels of visibility gap funding, while allowing concessioners to retain toll revenue over a fixed 20-year concession period.
Speaker #3: The event BOT toll framework is also expected to bring over 10,000 km of projects into the private bidding pipeline. The newly introduced urban decongestion policy is expected to strengthen center-state coordination with greater state participation in planning and financing ring roads, bypass, and other urban connectivity projects.
Speaker #3: The railway sector also continues to move toward corridor-based capacity creation, freight decongestion, and technology-led operations. During the quarter, the government approved multiple multi-tracking projects with an aggregate investment of approximately Rs.
Speaker #3: 48,000 crore. While continued investment in safety, signaling, and communication infrastructure continues to strengthen network capability and reliability. In power transmission, the power sector is entering a period of structured reform.
Speaker #3: With the government preparing the first major overhaul of the national electricity policy, the proposed policy is expected to adjust the issue around transmission and distribution network access, traffic rationalization, and cross subsidies, with potential implications for investment and private participation across the power sector.
Speaker #3: As renewable energy generation expands, the sector's next phase of growth is expected to increasingly focus on developing high-capacity transmission networks to evacuate power from renewable-rich regions the sector is emerging as a significant infrastructure opportunity with industry estimates indicating transmission capex of around 5 to 6 lakh crore between financial year 2027 and 2032.
Speaker #3: Tunnel and hydro backed by strong government-led project pipeline, the tunnel and hydro segment represent an estimated opportunity of Rs. 1 lakh crore approximately. Over the next 5 years, the government is also strengthening policy support for energy storage, with proposed Rs.
Speaker #3: 15,000 crore viability gap funding scheme for 112 gigawatts of storage capacity. Including 60 gigawatts of pumped storage, in oil and gas, the government has approved 84,000 crore incentive package to accelerate deep-water exploration and attract foreign support of up to 50% of exploratory drilling cost, the government is also stepping up efforts to expand domestic oil and gas exploration with 46 new exploration blocks under open excavation licensing policy, 10th and 11th, covering over 2.6 lakh square kilometers offered under the latest OALP rounds.
Speaker #3: In logistics and warehousing, the logistics and warehousing sector is also a significant long-term opportunity with industry estimates indicating that India could require around 216 multimodal logistics parts, by 2047, to support the growth of freight movement and improve supply chain efficiency.
Speaker #3: The government is also working to strengthen the model concession agreement framework for multimodal logistics parts, with objectives of improving project viability and facilitating greater private sector participation.
Speaker #3: The warehousing sector is witnessing strong investment momentum, with institutional investment in Indian warehousing rising, 53% of year-on-year to around 500 crores. The warehousing sector is also expanding beyond traditional metropolitan markets with many tier-2 cities emerging as new warehousing hubs.
Speaker #3: Supported by improving connectivity, growing congestion, and industrial activity, I would like to thank our client, vendors, partners, employees, and shareholders for their continued trust and support.
Speaker #3: With that, I now request Ankitji to take you through a financial performance in detail. Thank you.
Speaker #2: Thank you, sir. And good afternoon, everyone. I will start with the key highlights of Quarter 1 performance. The standalone revenue from operation was 2,423 crores approximately in the quarter ended June 2026.
Speaker #2: Which has increased by 32.71% year over year, compared to 1,826 crores in quarter ended June 2025. The consolidated revenue from operations was 2,784 crores in quarter ended June 2026, which has increased by 40% year over year, compared to 1,988 crores in quarter ended June 2025.
Speaker #2: The standalone EBITDA margin stood at 11.02% in quarter ended June 2026, from 12.65% in quarter ended June 2025. The decrease was primarily on account of higher construction and material cost.
Speaker #2: The EBITDA margin at group level has decreased to 16.8% in quarter ended June 2026, from 20% in quarter ended June 2025. Profit after tax at standalone level decreased to 203.63 crores in quarter ended June 2026, as compared to 216 crores in quarter ended June 2025.
Speaker #2: Profit after tax at consolidated level 358 crores in quarter ended June 2026, compared to 244 crores in quarter ended June 2025. The PAT in the current quarter includes exceptional item of 46 crores related to gain on dilution of interest in associates, from 43.56% to 31.58%.
Speaker #2: The standalone net worth stood at 9,074 crores at the end of June 2026.
Speaker #3: Can I interrupt, sir? I would request you to come a little closer to the microphone because your voice is fading away every now and then.
Speaker #3: Thank you.
Speaker #2: Sure. My audible now?
Speaker #3: Much better, sir. Please go ahead.
Speaker #2: Okay. The standalone net worth stood at 9,074 crores at the end of June 2026. It was 8,869 crores at the end of fiscal 2026.
Speaker #2: The net worth on consolidated level is 9,750 crores at the end of June 2026. It was 9,391 crores at the end of fiscal 2026.
Speaker #2: The total standalone borrowings outstanding at the end of June 2026 is 239 crores, with debt-to-equity of 0.03 times, the total consolidated borrowing outstanding at the end of June 2026 is 5,286 crores, with debt-to-equity of 0.55 times.
Speaker #2: During the quarter, the company has made additions to the fixed assets, amounting to 22 crores, to the net block of property, plant, and equipment, and a net which is 1,019 crores at the end of current quarter June 2026.
Speaker #2: Investment in the subsidiary companies in the form of loan and equity are 2,445 crores at the end of June 2026, and the balance equity contribution required to be made to the HAM and BOT projects is 3,346 crores.
Speaker #2: Of which we are expecting contribution of approximately 900 to 1,000 crores in the fiscal 2027. The working capital days at the end of June 2026 is 140 days, 48 days, as compared to 128 days at the end of fiscal 2026.
Speaker #2: The increase is primarily on account of increase in debtor and inventory days. The trade receivables at the standalone basis are 2,655 crores, including 1,784 crore HAM debtors, at the end of June 2026, and the trade receivables at the consolidated level are 1,091 crores at the end of June 2026.
Speaker #2: The unbilled revenue at the standalone basis is 938 crores, at the end of June 2026, and unbilled revenue at the consolidated level is 498 crores, at the end of June 2026.
Speaker #2: Inventories are at 863 crores, at the end of June 2026, compared to 739 crores at the end of fiscal 2026. So I would sincerely like to thank again everyone and, on behalf of G R Infraprojects Ltd., I thank everybody on the thank you.
Speaker #3: Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone.
Speaker #3: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.
Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shravan Shah with Daulat Capital.
Speaker #3: Please go ahead.
Speaker #2: Yeah. Thank you, sir, and congrats on the good set of number, particularly on the execution front. So, a couple of questions. So, sir, first, a broad in terms of the guidance.
Speaker #2: So, previously, we were looking at revenue at a standalone level for FY 2027, 15 odd percent kind of a growth. Now, we have already done a much better number in the 32, 33 percent in the Q1.
Speaker #2: So how one can look at the FY 2027 revenue and then going forward, in terms of the FY 2028 onwards, can we see this, this execution rate to 2 inch up, even 20 percent plus kind of a number?
Speaker #1: Yeah. Thank you, Shravan. Ankit here. So, yeah, I mean, quarter one, we have been able to achieve 30 percent plus, but for the year our guidance, you know, remains the same, around 15 to 20 percent.
Speaker #1: And next year, depending upon the order inflow, etc., we expect that, yes, we can reach closer to 20 percent of the growth.
Speaker #2: Okay. And on the margin front, 10 and a half, 11 percent, we were looking at. So still, given the commodity prices, and that's why we are still maintaining the same or can we see a 11 percent, what we have done in the Q1, can we even maintain or maybe some improvement is also possible there?
Speaker #1: I mean, if you see current scenario, 10 to 11 percent, would be the range. But let's see how the macroeconomic factors evolve. You know, after some time, marginally, things can improve also, but we think that 10 to 11 percent would be the right range.
Speaker #2: Yeah. And now the main in terms of the inflow. So how one can look at the inflow which we were looking at 2025,000 odd crores.
Speaker #2: So how much we are looking at, sir, as mentioned, that close to 32,000 crores, which that we have submitted is yet to be open.
Speaker #2: If you can also split it in terms of the segment-wise, what we are looking at and what we have bid it, will we will be helpful?
Speaker #1: I would like MD, sir, maybe.
Speaker #2: 28,000 yet to be opened.
Speaker #1: Road sector में ये maximum है 28,000. 4,000 अपने hydro internals में है. लेकिन अभी जो scenario improvement है, उसमें अगर अपन देखें तो BOT में काफी pipelines में है projects.
Speaker #1: इसमें improve होना चाहिए, लेकिन अभी तक जो project की pipelines कम रही है, government की awarding कम रही है, लेकिन आने वाले time में ये improve होनी चाहिए.
Speaker #1: कुछ जो international level पे जो disturbance है, उसका भी मुझे लगता है कुछ effects है, जिस तरह से oil prices और bitumen के prices जो disturb है, उसकी वजह से भी कुछ projects जो है, वो आने वाले time में upbit होंगे.
Speaker #1: क्योंकि अब जो internationally अगर आप environment देखें, तो कुछ improvement होता हुआ दिख रहा है. आने वाले time में निश्चित तौर पे infrastructure पे एक अच्छा government का pipelines open होनी चाहिए.
Speaker #2: Okay. So for, sir, पूरे साल के लिए जो 20, 25,000 crores जो देख रहे हैं, ये साल के लिए, तो वो हम लोग confident हैं कि उतना तो अपने को 20, 25,000 crores का inflow आना चाहिए.
Speaker #2: Given के कि आप जैसे बता रहे हैं कि 28,000 crores already हमने road में beat किया है, तो broadly मतलब 12, 15,000 crores अपने जो 20, 25,000 अगर देख रहे हैं, तो उसमें से road will still remain the major one.
Speaker #1: बिल्कुल, बिल्कुल. निश्चित तौर पे ये number achievable लग रहे हैं. जिस तरह का power है, और जिस तरह की government के साथ में जो discussion में दिखता है, आने वाले time में, projects आएंगे.
Speaker #1: और अपने ये जो target है, अपन achieve करेंगे.
Speaker #2: See, ये road में ना, road हम लोग जो 28,000 which we are talking about, right, which includes it is actually transportation, which includes metros, right, वो भी है.
Speaker #2: मतलब it is not only roads. Surface transportation जो भी आ रहा है, that वो सारी activity cover करती है.
Speaker #3: Okay, okay. Okay.
Speaker #2: But, but वही थोड़ा सा समझना था कि अभी जैसे NHI ने अभी recently जो list निकाला है, 5,000 किलोमीटर, they want to award in this year.
Speaker #2: More than 4, 4 and a half record का जो अभी toll plus annuity भी वो लोग नया लेके आ रहे हैं. तो अपना अभी focus कैसे रहेगा?
Speaker #2: मतलब वहां से या फिर still transmission, oil and gas, और वहां से भी हम लोग ज्यादा opportunity देख रहे हैं in terms of the inflow.
Speaker #1: See, so there is no restriction. Transportation पे there is no restriction. I mean, only issue is कि when bid का तो transportation पे issue है नहीं.
Speaker #1: Only thing is on transmission side, on oil and gas. Side, those are the new sector where we had also developing our team. उसमें थोड़ा time लगता है.
Speaker #1: Probably for example, oil and gas में भी the government has come up with the incentive scheme, right? तो हम लोग मतलब we may not, you know, be you know, fast tracking that particular sector.
Speaker #1: Road में तो कोई challenge ही नहीं है. Road में अगर काम आज 5 लाख crores का bid कर दे, तो we can take 20,000 crores of the orders, right?
Speaker #1: So there is no issue in terms of transportation चाहे road हो, चाहे rail हो, चाहे metro हो, whatever. So we are targeting both. I mean, for the current year, what we are targeting is because we are looking at each and every model of the road transport.
Speaker #1: तो हम लोग we are looking at EPC, we are looking at HAM, we are looking at BOT, BOT annuity बोल दो, BOT whatever. We all are comfortable.
Speaker #1: We are comfortable each and every model. तो what we are targeting for the current year, road sector में अपना around 14,000, 14, 14,000 का अपन BOT, right?
Speaker #1: नहीं, total order book में that incoming order जो अपना हाँ. So around around 14,000 crores of the inflow which we are targeting in road sector.
Speaker #1: अब वो depending on that competition, it may come down, it may go up. I mean, इसमें in terms of capacity, in terms of capabilities, we are not basically there is no hindrance.
Speaker #1: We can go up to 15,000, 18,000. But then depending on that competition which exists in the sector, उससे अपन उधर जाके भी आ सकता है.
Speaker #1: तो idea is this is our guidance. This is our target. So पर plus minus 10% होता है, तो which we are comfortable.
Speaker #2: Okay. And lastly, sir, appointed date जो अपना बचा हुआ है, एक अगला आगरा ग्वालियर and दो जो HAM ये थे, तो वो अभी कब तक आ जाएंगे?
Speaker #2: And जो equity जो बचा हुआ है, सर ने बोला 900 से 1,000 crores ये साल में, so आगे के लिए 28, 29 में कितना equity अपने invest करेंगे?
Speaker #1: See, total equity investment for next stage around 3, 3,200, 3,300 crores का करीब-करीब अपने plan है for next years, which is already committed. अगले 3 साल में.
Speaker #1: Largely next year of time अपने को डालना है. और आगरा ग्वालियर की अगर अपन बात करें, तो maybe October और नवंबर. पूरा monsoon का ये खत्म हो जाता है.
Speaker #1: I think more of most of the जो precedences और condition precedence has already been over. Already been complied. तो I think we are we are confident we will be getting that appointed date in the month of October, November.
Speaker #1: आगरा ग्वालियर का. और बाकी because those projects we have received in March. So आप ये समझ लो, again, that would be in the month of December.
Speaker #1: बाकी दो HAM projects हैं. We will be, you know, targeting कि appointed date would be in the month of December.
Speaker #2: Okay. Okay, sir. Thank you and all the best, sir.
Speaker #1: Thank you.
Speaker #2: और reminder to all participants, you may press star and want to ask a question. The next question comes from the line of Vaibhav Shah, with JM Financial.
Speaker #2: Please go ahead.
Speaker #3: Yeah. Sir, what will be our revenue from TND vertical in first quarter?
Speaker #1: So the TND vertical first quarter revenue was approximately 110 crores.
Speaker #3: 110.
Speaker #1: Yes.
Speaker #3: Okay. So growth was mainly driven by highways only in first quarter?
Speaker #1: By three sectors, I would say. Transport, which includes of course highways. Second was PTND. Because if you see previous quarter, I mean the previous financial year, it was 75 crores and this quarter is 110 crores.
Speaker #1: And also from the oil and gas business unit. So three sectors were the major contributors.
Speaker #3: And what was ONG revenue this quarter?
Speaker #1: ONG revenue this quarter, it's 270 crores.
Speaker #3: And our target for the entire year for ONG?
Speaker #1: Entire year for the target is approximately 1,000 crores.
Speaker #3: 1,000 plus. Okay. So secondly, on the order inflow guidance, so the total number would be maintained around 20, 22,000 crores combined?
Speaker #1: The target, yeah, our target is RNG already explained. Sector-wise, depending upon how the bid inflows happen, it could be, you know, plus minus 10% also.
Speaker #3: Around that 20,000 crores mark.
Speaker #1: Correct.
Speaker #3: Okay. Okay. Yeah. Thank you, sir. Those are my questions.
Speaker #1: Thank you.
Speaker #2: The next question comes from the line of Aditya Khetan, with first asset limited. Please go ahead.
Speaker #3: Hello sir, good afternoon. Thank you for the opportunity. I wanted to know your views on the opportunity presented by the hydrogen rail program, and which part of the entire value chain does the company expect to participate in, and like what meaningful growth driver can come in the medium term from this new project of the government?
Speaker #1: initiative, of course, by the government, but presently, from our strategy, viewpoint, you know, we are not exploring that particular sector.
Speaker #3: Okay. So are you not actively involved in this project at all?
Speaker #1: Green hydrogen in the hydrogen train, no.
Speaker #3: Okay. Okay. Fine. Fine.
Speaker #2: Do you have any more questions, Aditya?
Speaker #3: No, no sir. I just wanted to know if the company is like into the hydrogen rail program, because somewhere I had come across that actively into the fueling stage.
Speaker #3: That's it.
Speaker #2: Thank you. Participants, please press star and want to ask a question. The next question comes from the line of Vineeth, with invest tech India.
Speaker #2: Please go ahead. Vineeth, please unmute your line in case if you are on mute, and you may ask your question.
Speaker #3: Sorry, am I audible now?
Speaker #2: Yes, Vineeth.
Speaker #3: Okay, perfect. Thanks. Sir, just a couple of questions. The first one is, we've had a very sharp raw material inflation particularly related to crude in Q1 and in the last few months.
Speaker #3: How confident are you that that gets compensated by the escalation clauses which we have across our projects? And the same holds true for other raw material commodities as well.
Speaker #1: See, crude actually, particularly I mean for our, that it is not that crude. Basically, it's a bitumin, right? And bitumen link product which is, I mean, petrocarbon product, hydrocarbon product which is diesel and all, right?
Speaker #1: So particularly for bitumin, government has come up with direct circular which is actually so it is over and above that escalation clause which we are having in the contract.
Speaker #1: Because the price jump in bitumen is so I mean, it was so high, right? So which could not be, you know, covered through escalation.
Speaker #1: And they came up with the direct circular, and they linked whatever bitumen which we have been, you know, applying on the road construction activities during the quarter, we have been directly compensated by the government.
Speaker #1: Yes, of course, on diesel side, that was not the case. So to that extent, we have our financials have been impacted, right? Diesel and related to the diesel, I mean, because for example, we are utilizing aggregate, right?
Speaker #1: Which is being crushed by the crusher, where again, input is the diesel, right? Or maybe electricity and all that, right? So to that extent, yes, so overall impact is there.
Speaker #1: On the, you know, raw material side, and because of the diesel or, you know, energy-related issues, energy-related price hike, the price, but if we talk about specifically bitumen, which is direct component which is getting utilized into our project, that is very well compensated by the government, yeah.
Speaker #3: Understood. And how about, sir, for aluminium, steel, particularly in the power transmission sector?
Speaker #1: Power transmission sector in aluminium, copper, see, not much is not because because of it is more kind of speculation, right? Because of that wall-like situation, the volatility was there, and it was very much, I mean, the price variation was very high, right?
Speaker #1: But it is not directly, I mean, it is not maybe it's not because of the maybe supply chain could be one of the reason, but it is more of speculation, probably what we believe is that in next three to six months, that would be again, you know, stabilized.
Speaker #1: And we are see, of course, it is impacting our project margin, but it is not is not that, I mean, we have to that is getting spread over the period of two years of time, right?
Speaker #1: So whatever raw material which we are procuring for a power transmission project, which we are procuring in next one, one and a half year, it is getting spread over there.
Speaker #1: So maybe for current quarter, whatever raw material which we are purchasing, right, to that extent, my price would be higher. But it is not getting compensated, right?
Speaker #1: We are not getting any escalation, at least into power transmission project. But over the period of next two years, maybe this would again be normalized, and the price would, I mean, impact would not be that high, right?
Speaker #1: Which probably we'll see in next I mean, the current one or two quarter.
Speaker #3: Understood. Understood. And sir, one bookkeeping question. If I look at the other income, this quarter, that was relatively on the lower side. Any, any particular reasons for the same?
Speaker #1: Yeah. So if you see the impact of other income is basically the interest and dividend which we received from the Invet Industry Trust. So this quarter, that payment was in the form of capital repayment.
Speaker #1: So that becomes the balance sheet item and not the P&L item. So overall, at the company level, we have yeah, we have received 3.5 per unit versus 2.25 per unit in the last quarter, previous year's quarter.
Speaker #1: And interest dividend income was lower. So that's why you see that difference.
Speaker #3: Understood. Understood. Okay, perfect. Perfect. Thank you so much, sir. Thank you.
Speaker #2: Participants in the interest of time and finished to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue.
Speaker #2: The next question comes from the line of Bhavin Modi, with Anand Rati Groups. Please go ahead.
Speaker #1: Hello, sir. Thank you for the opportunity. Sir, how are you seeing the, you know, competition in the road sector? Like, we have been seeing some, you know, weeds getting opened, you know, in the moth and the NHAI.
Speaker #1: They are still, you know, 15 to 20 meters always there, you know, in the beads that are open. So how do you see the competition?
Speaker #3: So market में अगर अपन हाईवे सेक्टर में देखेंगे तो कंपटीशन तो अभी रहेगा, लेकिन गोइंग फॉरवर्ड जो प्रोजेक्ट्स हाई है और जिस तरह से नंबर ऑफ प्रोजेक्ट्स आएंगे, मैं ये देखता हूं, कंपटीशन थोड़ा रिड्यूस होगा। और अभी गवर्नमेंट का जिस तरह से बीओटी प्रोजेक्ट्स के अंदर फोकस है, उसमें लिमिटेड पार्टिसिपेशन रहेगा जिनकी बैलेंस शीट स्ट्रांग है। वो लोग पार्टिसिपेट कर पाएंगे। तो गोइंग फॉरवर्ड एक अच्छी अपॉर्चुनिटी है हाईवे सेक्टर में।
Speaker #1: Okay. Second, sir, how do you see the competition in other sectors? Like, you know, elevated metro, railways, you know, there also we are seeing, you know, the road players are entering into those space.
Speaker #1: And the competition is, you know, elevated even in that space.
Speaker #3: Competition तो देखिए, जब हाईवे सेक्टर में जिस तरह से कैपेबिलिटी लोगों की बनी है, तो गोइंग फॉरवर्ड सभी इंफ्रास्ट्रक्चर सेक्टर में, क्योंकि अभी आप चाहे वो पावर ट्रांसमिशन हो, चाहे वो एलिवेटेड रोड हो, चाहे वो मेट्रो हो, जो कैपेबिलिटी बनेगी, लोगों का पेनिट्रेशन बढ़ेगा। लेकिन आने वाले समय में जब अपॉर्चुनिटी बढ़ेगी, तो ये एक अच्छी हेल्दी क्योंकि इसके अंदर जिनकी बैलेंस शीट स्ट्रांग रहेगी, वही लोग सस्टेन करेंगे। तो हेल्दी कंपटीशन तो रहेगा, बट अपॉर्चुनिटी भी अच्छी रहेगी।
Speaker #1: और उसमें क्या है, see, even railway, you will find that government is basically considering that ham model in railway, railway projects also, right? Would dedicated freight corridor they are talking about कि they would those project would be avoided under ham model.
Speaker #1: तो ये तो है कि मतलब if the government is also considering more and more participation on private side, rather than कि EPC, तो जितना EPC कम होगा and more and more capital is required, that also give that push to basically कि competition would be lesser going forward.
Speaker #1: अभी वो छह महीने में होता है, 12 महीने में होता है, that's only matter which, I mean, that's the only thing which we have to see.
Speaker #2: Thank you. The next question comes from the line of Uttam Shrimal, with Axis Securities. Please go ahead.
Speaker #3: Yes, sir. Thanks for the opportunity. Sir, my question pertains to other income. So these first quarter run rate will continue in the next three quarter also?
Speaker #1: Yes.
Speaker #3: Okay. And sir, hello.
Speaker #1: Yes, please continue. Yeah, yeah.
Speaker #3: Okay. And sir, what would be our capex guidance for this year and the next year?
Speaker #1: So for the current year, the capex guidance is of approximately 300 crores. And for the next year, it shall remain 200 to 250 crores.
Speaker #3: Okay. Okay, sir. That's all from my side. And thank you.
Speaker #2: The next question comes from the line of Vasudev, with Nuama Wealth Management. Please go ahead.
Speaker #1: Yes, thank you for the opportunity. So sir, you know, if you can just give an absolute term is how much distribution we received from the Invet in this quarter and, you know, are we planning to transfer any other asset to the Invet in this year?
Speaker #3: Specifically, I mean, la amount what you are saying is what exactly the cash flows we received as a distribution from the Invet, right? So this is so this is around, I would say, 70 crore.
Speaker #3: 70 crores which we have received in the current quarter. Right? And, and the second question you asked for is that okay, the second other assets.
Speaker #3: Two available assets.
Speaker #1: Ha, ha.
Speaker #3: So, so yeah, yeah. So we have got, I mean, so for current year also we are targeting at least three four asset would be transferred to Nvidia.
Speaker #1: Okay. And sir, what does the status of the BharatNet project?
Speaker #3: BharatNet project, we are waiting for ROW. So we have started O&M activity, operation maintenance activity, which is also integrated part of that project. But existing project, I mean, whatever existing project which has been handed over to us, we already started.
Speaker #3: But we have not received so far that ROW where that new capex can be done, right? So we are waiting and probably we what we believe is that, again, in the month of October, only we'll be able to start in terms of its project.
Speaker #3: That project capex, yeah.
Speaker #2: Thank you. The next question comes from the line of Deepashree Joshi, with Ambit Capital. Please go ahead.
Speaker #4: Hello, sir. Thank you for the opportunity. I just wanted to understand, why the trade receivables this quarter have increased, the external trade receivables?
Speaker #1: Yeah. So external trade
Speaker #3: receivable largely includes oil and gas. I mean, we because we entered last year and this this is a new sector for us. And so far our understanding is once that project is complete, then only that project is getting, I mean, that that cash accrual or trade receivable is getting released.
Speaker #3: So maybe another I would say when we start again that next cycle, we'll start realizing good trade receivable maybe in the month of October, December to March, right?
Speaker #3: So because of that reason, and, and by, by the end of March or May, I would say May 27, we'll be able to complete that project as well.
Speaker #3: So we'll be able to realize our whatever so this is largely because of oil and gas sector. Otherwise, I think we are on same track.
Speaker #4: Okay. So, so for the current year, that is ongoing. The trade receivables are expected to stay elevated because you'll receive payments.
Speaker #3: Yeah. Sure. Yeah, yeah, yeah.
Speaker #4: Okay. So okay. And this current project, is expected to get completed by March or May of next year, right?
Speaker #3: May, May, May, right. May, May 27.
Speaker #4: And this is the only pro only oil and gas project that is there in the books currently?
Speaker #3: There are two projects, right? And we are, I mean, we are willing for the I mean, for the bidding also, we are through our subsidiary, we'll be we keep on bidding.
Speaker #3: I mean, we'll be doing more and more projects, right, in oil and gas sector.
Speaker #4: Okay. Okay, got it. Thank you, sir.
Speaker #2: The next question comes from the line of Krish Bhatia, with Anand Rati Group. Please go ahead.
Speaker #1: Hi, thank you for taking my question. My question is on the warehousing business. So how much capital will be deployed in the warehousing business in the couple of years?
Speaker #1: And how much capital is deployed as on date?
Speaker #3: So as on date, there is a deployment of around 130 crores. And for this current financial year 27, we have a plan of around 450 to 500 crores.
Speaker #1: Okay. Thank you.
Speaker #2: The next question comes from the line of Shravan Shah, with Dholak Capital. Please go ahead.
Speaker #1: Yeah. Sir, what is
Speaker #3: the trade payable as on June? Trade payable as on June,
Speaker #1: is 1,073 crores. Standalone level.
Speaker #3: Okay. And Anand sir has has mentioned in terms of the other income lower because of the lower interest and dividend from the Invet side.
Speaker #3: Just to get a number correct, so roughly in terms of the other income, we must have book around close to 19 or 19, 19 and a half crores.
Speaker #3: Should be there part of other income in the Q1. At a standalone level.
Speaker #1: Yeah. So no, no. So the total other income is around 68 crores of which 20 crores is from the Invet interest and other interest income is 35 crores.
Speaker #1: And balance portion, as I already explained, was in the form of repayment of capital. So if we specifically talk about other income from Invet, that is higher compared to the previous year's quarter.
Speaker #1: And that differential impact is in the balance sheet because it the capital was repaid.
Speaker #3: Yeah, yeah. Got it, got it. Okay, okay. Yeah, yeah. That is it from my side. Thank you.
Speaker #2: The next question comes from the line of Karan Gupta, with Kavi Capital. Please go ahead.
Speaker #3: Yes. Thank you for the opportunity. Just quickly on the BharatNet project, there's been significant increase in OFC costs. So is that covered under your contract or how you managing that?
Speaker #1: So we have you know, what we have done, see, we are not getting any escalation. But at the same time, from our vendor, we also having fixed fixed price contract for the optical fibers cable, right, for first three years, right?
Speaker #1: So there is pressure, but we have to also see, I mean, how do we basically come out of this all issue. But theoretically, yes, I mean, there is no escalation, which we are getting from our client.
Speaker #1: And we also are not supposed to pay any escalation to our vendor.
Speaker #3: Fair enough, sir. My only question. Thank you.
Speaker #1: Thank you.
Speaker #2: A reminder to all participants, you may press star and want to ask a question. Participants, you may press star and want to ask a question.
Speaker #2: The next question comes from the line of Webb of Shah, with JM Financial. Please go ahead.
Speaker #3: Yeah. Sir, what kind of revenue are we expecting from the BharatNet project in FY 27?
Speaker #1: Current year business. So in the FY 27, we are expecting around 400 crores from BharatNet project.
Speaker #3: So this would be the other infra works or will be deploying the cables as well?
Speaker #1: Yeah, it is cable and operation random activities. See, BharatNet includes both laying of cable as well as, you know, operation and maintenance of existing project as well, right?
Speaker #3: So order value is roughly 650 crores plus O&M of 400 crores, right?
Speaker #1: Right, right. 1,000 crores is the order value.
Speaker #3: So out of 650, we are going to do 400 in this year itself.
Speaker #1: No, no, not 400. Out of that 650, it would be around 300 in capex side. And the balance would be on opex side, right?
Speaker #1: No end of it.
Speaker #3: So we'll be starting it in second half and we'll do 300 crores revenue.
Speaker #1: O&M is already started. And we'll be doing that capex we'll be starting from second half. Yeah. And we'll be able to do around 300 crores.
Speaker #3: Okay. And when do we expect to start the work on BEST project?
Speaker #1: BEST, see, BEST, the work is already started. Only thing is, because of that geopolitical issues, right, battery prices, and the dollar price dollar rupee movement, so we are just waiting for the time to, you know, where that all those, you know, external factors comes to, I would say, which help I mean, comes to in favor, maybe, next three months of time, we'll be, you know, we will be ordering batteries and all that, probably.
Speaker #1: So that is on track, I mean. It is already started. I mean, civil work and other items of that projects is already, you know, ordered or it is already under execution.
Speaker #3: And for railway project, in MP, that is already started.
Speaker #1: That is also started.
Speaker #3: So can we see a 30% kind of execution this year from the project?
Speaker #1: And 30% initially in first year, we should not target more than, I would say, 15%.
Speaker #3: 15%, yeah.
Speaker #1: Right.
Speaker #3: Okay. And sir, lastly on Agra earlier, as you mentioned that we may get the ED in sometime in October or November. So can we see a 10% kind of execution this year?
Speaker #1: Yeah, yeah, yeah. Very much. Yes.
Speaker #3: Okay, okay. Thank you, sir. Those are my questions.
Speaker #2: The next question comes from the line of DRJN, with Sapphire Capital. Please go ahead.
Speaker #4: Hi, sir. My only question.
Speaker #1: Yeah, yes, we are.
Speaker #4: So what kind of revenues are we targeting for FY 28? And also the margins, sir.
Speaker #1: See, FY 28, we are targeting if we target 20% growth, probably it would be in the range of 12,000 crores, right? 11, 12,000 crores, kind of revenue which we are targeting for FY 28.
Speaker #1: And the margin, yes, of course, we are expecting in the same range. But that, again, depends on how those macroeconomic situations, you know, pan out for the next six months basis.
Speaker #1: That probably my margin may be, you know, on plus side or minus side, yeah.
Speaker #4: Okay, sir. Thank you.
Speaker #2: The next question comes from the line of Sudeep Bora, with Ambit Capital. Please go ahead.
Speaker #1: Thank you for the opportunity, sir. Sir, I wanted to understand, like, in Q1, we had a more than 30% kind of a jump in revenue, as compared to last year.
Speaker #1: So for full year FY 27, we are guiding 15, 20% kind of growth. So what is kind of stopping us from, say, 25, 30% growth this year, considering we have a strong order book?
Speaker #3: See, current in current quarter, we witness almost 30%, right? And now the second half would be more guided by how early and how fast we will be getting that appointed date.
Speaker #3: Our target is that we'll be getting in the month of October or December, right? But if there is any delay, then probably we may not have that kind of, you know, and that monsoon also, the pattern of monsoon which we have seen in last two, three years is this is running up to the month of October.
Speaker #3: So we are practically starting on ground in the month of November, right? All construction-related activities already generally getting started. In the month of November.
Speaker #3: So basis our own previous experience, we are targeting. So yeah, that could be possibility that where we can witness 25% of growth on annual basis.
Speaker #3: But I mean, if there is any positive growth, then positive there is, and I don't think there would be any issue. But yeah, that is our expert estimate.
Speaker #1: Okay, understood, sir. And last time, we had this labor issue, right, in Q4. So that has got completely resolved? Or how is the situation right now?
Speaker #3: Yeah, yeah. Labor issue is not there. Last time, it was because of Bengal election and all that. Those issues were there. But yeah. Now there's no issue.
Speaker #3: Now it is more on material side, not on manpower side.
Speaker #1: Okay. Okay. Thank you, sir. Those were my questions.
Speaker #3: Thank you.
Speaker #2: The next question comes from the line of Parikshit Khandpal, with HDFC Securities. Please go ahead.
Speaker #3: Yes, sir. Thanks for the opportunity. So my question is, now we are building credentials in the oil and gas segment and in past, we have done transmission.
Speaker #3: So just wanted to understand from the export market point of view, especially Middle East, which is a big market for both oil and gas and transmission.
Speaker #3: So do we have any strategy over the next two, three years given that the road sector has significantly slowed down over the last two, three years?
Speaker #3: So how are you thinking about expanding beyond India?
Speaker #1: First, इसमें क्या है कि दोनों ही सेक्टर में हम domestic level पे पहले अपने credential develop करेंगे. और उसके ऊपर फिर confidence आए, पूरी तरह से market पे अपनी पकड़ बने, तो फिर international market को.
Speaker #1: अभी फिलहाल next one to two years में हमारा international business में अभी तक कोई focus नहीं है.
Speaker #3: And उसमें क्या है?
Speaker #1: Moreover, our transmission is, I would say, is a huge opportunity over there in India itself, right? एक तो वो है. At the same time, oil and gas also, because of this war situation, right?
Speaker #1: तो वहाँ पे भी government is focusing more. So what we I mean, oil and gas में भी अपने को बाहर जाने में ज्यादा challenge नहीं होता.
Speaker #1: Reason being the environment is the same. Largely, if we are working in the sea, right? But government अभी थोड़ा सा focus कर रही है India में भी, in oil and gas sector as well, right?
Speaker #1: तो what we also believe is that for next two years, at least there are ample opportunities in India also. And though we are also अब जैसे हम लोग, we are manufacturing transmission tower as well.
Speaker #1: So we have set up that manufacturing facilities, transmission tower जो बनाने का. And probably we are expanding also. I mean, we already started in existing existing premises.
Speaker #1: But अभी हम लोग उसको expand भी करेंगे. For manufacturing of more transmission tower. But if we are able to, let's say, reason being with why we enter into that manufacturing is because we are there is the challenge which we are facing कि tower अपने को time पे नहीं मिल रहा.
Speaker #1: तो point is that market exists in India itself. And we अगर अपने को मिलता है over the period next two years, if we believe that or we observe that कि okay, we are having more than more than sufficient facility in India, कि if we are able to cater Indian Indian projects as well as we are having surplus capacity, certainly we'll we'll go to we'll move to international market as well.
Speaker #1: But अभी आज की date में हमारे को लगता है अगले दो साल तो India में बहुत काफी सारा opportunity है. So there is no need to basically.
Speaker #1: So at least for next one year, we are establishing ourselves in India. But maybe after one year, we will start looking into outside India as well.
Speaker #3: Yes, sir. So one question is for Rajendra Deep. I mean, last तीन साल से we are thinking or we are hoping that the roads ordering will pick up in India.
Speaker #3: And every time we talk about every quarter, we talk about some trillions of opportunity or bid pipeline from NHL, which doesn't convert in on the ground in terms of ordering or execution.
Speaker #3: So sir, what is what needs to be changed on the ground or what according to you could change wherein the ordering comes back? Any color on the from the government interactions that now the bids are going to come maybe towards the year end, maybe towards the second half or next year?
Speaker #3: So why road ordering is not happening according to you, and what will drive it back?
Speaker #1: अभी ये जो अपन हर साल निश्चित तौर पे ये opportunity जिस तरह से देखते हैं market में, लेकिन convert नहीं हो पा रही है.
Speaker #1: अब आने वाले time में अभी government का मुझे यूँ लगता है कि जो investment की जो philosophy है इनकी, initially इन्होंने government ने जैसे EPC projects पे और HEM पे ज्यादा focus किया.
Speaker #1: अभी नई जो policy है मतलब more particip मतलब इनको चाहिए more participation of private sector. BOTs की मैं तो BOT उतनी अभी तक जो policy है, उस policy पे काम हो रहा है.
Speaker #1: और policy पे काम होगा तो नए projects काफी आएँगे. अब policy एक बार finally बन जाए तो निश्चित तौर पे projects आएँगे. उसी चीज़ का अभी नए अभी देखें अपने government ने अभी पहले सबसे पहले BOT के नए concession agreement में काम कर रही है.
Speaker #1: उसके अलावा BOT plus HEM के ऊपर काम कर रही है. तो once policy final हो जाए, तो निश्चित तौर पे नए projects और काफी projects pipelines में हैं जिनके ऊपर काम होना है.
Speaker #1: और काम की requirement actually infrastructure में huge है. अभी किसी भी city में देखें तो traffic का जिस तरह से congestion है, highway पे कोई किसी भी highway पे भी देखें, तो जिस तरह से congestion है, तो huge requirement है logistics में.
Speaker #1: और आने वाले एक दो साल में मतलब requirement भी है government का focus भी है. But किसी ना किसी वजह से हो नहीं पा रहा है.
Speaker #3: Yes, sir.
Speaker #1: मतलब जहाँ चीज़ change हो, हाँ. कहना थोड़ा सा मुश्किल है. लेकिन government का जैसे जहाँ भी discussion होता है, तो वहाँ यही लगता है कि अभी opportunity मतलब अगले next quarter में ही इतनी opportunity होगी कि जिसको market absorb नहीं कर पाएगा.
Speaker #1: मतलब उस तरह के discussion होते हैं. But reality no doubt अपने पिछले दो साल से देख रहे हैं तो उतना हो नहीं पा रहा है.
Speaker #3: Okay. सर, last question सर, जो खाली एक investment पे पूछना था. So now we have twenty four hundred crores invested. We have pending thirty three, thirty four hundred, which will take the total investments to fifty seven hundred upwards of between five thousand five hundred to six thousand in next three years, which will be residual equity investments pending in all the assets.
Speaker #3: Invested in all the assets. इसके beyond we have two thousand crores of units in the invent. So it will take the number to eight thousand crores.
Speaker #3: So the next three years with monetization there will be huge cash flows plus the dividend income. It's recurring dividend income over many years. So how do you think this will get distributed or utilized in the business?
Speaker #3: Because there seems to be a huge value which is getting created. I mean, even if I multiply it one point five times one point three, one point four times price to book, so the number looks to be quite big in fact, more than the market cap.
Speaker #3: So how do you think this will get utilized over a period of time?
Speaker #1: जी, so for that reason only we I mean, because एक road में that's why we are also you know equally interested in BOT projects just to deploy whatever you know cash across which we are having on our balance sheet.
Speaker #1: तो that's how we are targeting that we diversified into you know more business where we can deploy our capital with a meaningful return. होना वैसे ही है.
Speaker #1: And hence we are targeting देखो transmission we are targeting logistic में भी also we are deploying we are we are where we believe that we are getting or we are hopeful of getting good returns over there as well, right?
Speaker #1: So होना तो वैसे ही है. And more BOT क्या है अगर BOT भी ढंग से आ जाता see even for example if we are able to get ten thousand crore or eight thousand crore of BOT as well तो then also at least thirty percent twenty four hundred crore तो वो वो project में चला जाता है.
Speaker #1: Right? So so and government intent is also to have more and more private participation. So we we are equipped we are just waiting for right opportunities, right?
Speaker #1: Where to I mean how to and where to we have deploy this capital. And we are quite hopeful we will be able to deploy because infrastructure में काम होना है और government ने private से ही करवाना है.
Speaker #1: So what I so far I mean whatever limited understanding which we are right now having while having interaction with government authorities and that the the news items, right?
Speaker #1: तो probably we will be able to deploy here.
Speaker #3: Oh, thank you sir.
Speaker #1: Okay.
Speaker #3: Thank you.
Speaker #1: Thank you.
Speaker #4: Ladies and gentlemen, we will take that as the last question for today, and I would now like to hand the conference over to the management for the closing remarks.
Speaker #1: I would like to express my sincere appreciation to all your all our investors analysts and stakeholders. Who joined our investor call and engaged with us through their questions, insights, and perspective feedback.
Speaker #1: The interaction provided us with an opportunity to share our performance, strategic priorities, and our roadmap for the future. We greatly value the confidence and continued interest that investment community plays in our company.
Speaker #1: We look forward to continuing this dialogue and sharing our progress with you in the quarters ahead. Thank you for continued participation and belief in our journey.
Speaker #1: Thank you.
Speaker #4: Thank you sir. Ladies and gentlemen, on behalf of HDFC Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.
