Q1 2027 KNR Constructions Ltd Earnings Call
Speaker #1: Earnings conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as of date of this call.
Speaker #1: These statements are not the guarantees of future performance, and involve risk and uncertainty that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchscreen phone. Please note that this conference is being recorded.
Speaker #1: I now have the conference over to Mr. K. Venkataram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, Mr. Rao.
Speaker #2: Good morning, everybody. Thank you for joining us today on the call to discuss the financial results for Q1, FY27. Along with me, I have Mr. K.
Speaker #2: Jalandhar Reddy, Executive Director, and Strategic Growth Advisor, our investor relations advisor. We have uploaded results and investor presentation on our stock exchanges, as well as on our company website.
Speaker #2: I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry posts which we will have a question and answer session.
Speaker #2: The road sector is currently going through a phase of the recalibration, with a project awarding remain subdued in the initial month of FY27. Following the softened witness through FY26, during the quarter, NHI awarded approximately 107 kilometers of the project, while execution also moderated to around 638 kilometers.
Speaker #2: That's it, the government continued to back the sector with a strong spending commitment for FY27. The union budget has allocated close to 3.1 lakh road transport, and the road sector capex outlay is up around 8% after two relatively subdued years.
Speaker #2: This gives us confidence that the groundwork is in place for awarding activity to pick up, even though tendering and award has been slower to come through in this first quarter.
Speaker #2: NHI has also outlined a revised FY27 plan to award 54 highways and expressway projects covering through 2,440 kilometers worth of combined 1.8 lakh crores, across 13 states, so that the near-term awarding environment remains measured.
Speaker #2: This identified pipeline gives us reasonable visibility for the coming quarter. Overall, while the sector is seeing some moderation right now, we remain positive on the awarding outlook for the rest of the year and believe that underlying spending pipeline is healthy.
Speaker #2: Beyond, we are also seeing
Speaker #1: Speaker, sorry for interrupting. Your voice is breaking. Yes, please go ahead.
Speaker #2: Yeah. The government continued to focus strongly on the railways capacity expansion and modernization, with a record of 2.93 lakh crores of the capital expenditure allocated to the Indian Railway for FY27, going towards capacity augmentation, multi-tracking freight corridors, safety, station redevelopment, and better rail connectivity.
Speaker #2: This is creating a healthy pipeline of the project across the rail. The outlook is particularly encouraging for the Andhra Pradesh, which has received a record 10,134 crores railway allocation for FY27, and the operationalization of South Coast Railway zone, which further strengthened the focus on rail infrastructure in the region and support new project execution.
Speaker #2: We see this in an opportunity to gradually diversify our order book into the railway civil works, track infrastructure, and related works. With this strong government spending and the growing pipeline across the southern region, railways are gaining increasing importance in our medium-term business mix.
Speaker #2: Urban mobility is another segment that continues to see healthy activity, with the government supporting the expansion of metro and mass rapid transit. New calls and extension are being planned across key cities, creating a sizable corridors, viaduct, stations, bridges, and related civil work.
Speaker #2: As part of our medium-term diversification strategy, we are actively evaluating railway and metro projects as they come up for tender. Through our focus remains on selectively pursuing projects where we see adequate execution visibility attractive returns and good fit with our existing capacity.
Speaker #2: Another emerging opportunity is the battery energy storage system segment, which are expecting significant over the coming year. Overall, we believe that long-term infrastructure opportunity in India remains intact, although the composition of growth is evolving.
Speaker #2: Railway will continue to remain our core opportunity, but we see the next phase of growth becoming increasing diversify across expressway, railway, urban mobility, mining, irrigation, logistics, and emerging areas such as energy storage.
Speaker #2: We remain positive on overall opportunity and will continue to focus on building a strong and diversified order book while maintaining our discipline on the project selection and returns.
Speaker #2: Now coming to the key update of the company, the percentage of physical progress as of 30 June 2026 for HAM project is as follows.
Speaker #2: Ramnata Tukara to Valancheri, 100% completed. Valancheri to Capricut, 100% completed. Magadi to Somwarpet, approximately 91.35%. Maripadu to Somwarpad, approximately 86.03%. Mysore to Kosalnagar package 4, around 20%, and Mysore to Kosalnagar package 5, around 18.28%.
Speaker #2: As of 30 June 2026, the company has already invested Rs. 595 crores out of Rs. 805 crores, revised equity requirement for our all the existing HAM projects.
Speaker #2: The additional equity requirement of 210 crores to be infused as 125 crores and 85 crores is in FY27 in 28 respectively. You can refer to slide number 26 of investor presentation for detail on each HAM project.
Speaker #2: The company may require further additional equity investment of around 510 crores for Chennai ECR and Telangana NHI HAM projects. During the construct, the company along with its JV partner Sushi Infra and Mining Limited received a letter of acceptance from Southeastern Coalfield Limited for a coal mining project at Kusmunda in Chhattisgarh.
Speaker #2: The project has a total value of 3,361 crores excluding GST, and is to be executed over a period of 8 years. As part of the share purchase agreement with Indus Infra Trust, the company completed the transfer of its 100% stake in KNR Ramgari Infra Private Limited and KNR Palni Infra Private Limited.
Speaker #2: In KNR Ramgari, the company has invested 53 crores in SPV through equity and sub-date and received a total consideration of 227 crores from the purchaser and for KNR Palni, the company has invested Rs.
Speaker #2: 64 crores in SPV through equity and sub-subordinate debt and received a consideration of 295 crores, including 90 crores of cash surplus as EPC claim from the purchaser.
Speaker #2: On the credit front, CRISL rating reaffirmed the company's long-term bank facility rating at CRISL AA stable and short-term rating at CRISL A1 plus. Reflecting the company's strong credit profile.
Speaker #2: Now coming to the order book position, as on 30 June 2026, the company total order book stand at 8,667 crores. This order book does not include the recently won 2 HAM project and mining project.
Speaker #2: Including the HAM project and the mining project, the company's total order book stand at 15,234 crores. This is divided into 38% for the road sector, 11% for the irrigation project, 6% for the pipeline project, and 45% for the mining project.
Speaker #2: Client-wise diversification is 71% of order book is from the third-party client and balance 29 from the captive HAM project. Third-party order book percentage is also split between state government contract as 24%, whereas 46% for the central government and balance 1% from the other private party.
Speaker #2: The current order we will executable over a period of 3 to 3 and a half years, excluding the mining project. In this line, the company is targeting order inflow of range of around 8,000 to 10,000 crores during FY27, comprising a healthy mix of NHI projects, irrigation project, and other state government infrastructure works.
Speaker #2: Now let me take through the Q1 FY27 stand loan financial performance first, followed by the consolidated performance. The revenue for the quarter ended 2 debt Rs.
Speaker #2: 436.7 crores EBITDA for Q1 FY27 is 2 debt Rs. 65 crores and EBITDA margin is 15%. Net profit for the quarter was Rs. 282.3 crores.
Speaker #2: Now coming to Q1 FY27 consolidated financial performance, the revenue for the quarter is 2 debt Rs. 587.9 crores EBITDA for Q1 FY27 is 2 debt Rs.
Speaker #2: 96.4 crores and EBITDA margin is at 16.4%. Net profit for the quarter was Rs. 80.7 crores. Now moving on the consolidated standalone balance sheet, the company continued to remain in a strong balance sheet.
Speaker #2: The working capital debt is stood at 133 days compared to 78 days as of March 26. The consolidated debt as of 30 June 2026 is stood at 1,975 crores as compared to Rs.
Speaker #2: 2,438 crores as of 31 March 2026. The net debt to equity and consolidated basis as of 30 June 2026 stand at 0.9 as compared to 0.49 as of March 26.
Speaker #2: With this, we can open the floor for question and answer. Over to you.
Speaker #1: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone telephone.
Speaker #1: 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 #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Nitin S. Dharmavat with Aurum Edge LLP.
Speaker #1: Please go ahead.
Speaker #2: Yes, sir.
Speaker #1: Mr. Dharmavat, please go ahead. Mr. Dharmavat, please unmute yourself and go ahead. Since there is no reply from the line of Mr. Dharmavat, we'll move to the next, that is Web of Shah with JM ahead.
Speaker #3: Yeah. Please go ahead.
Speaker #4: Execution thread? Yes, sir. From the execution thread, how do we see the entire year for FY27 and what could be the growth in FY28?
Speaker #2: FY27, actually, we are targeting because you know that we did last year around 2,000 crores. So this year, actually, we definitely we will cross more than 2,000, but maybe you can say 10 to 15 percent more.
Speaker #2: So maybe around 2,200 to 2,300 will be FY27. Because what are the execution is going to start our ECR Chennai project and Telangana Mahbubnagar project and this in the Q3 and mining project of Kushmunda Chhattisgarh that is going to start in next you can say by next month.
Speaker #2: So 27 will be this and as far as 28 is concerned, definitely that year should be the good year actually because what are the projects are there they will everything project will actually completely start in FY28.
Speaker #2: So 28 should be more than actually 3,000 crores we will try to achieve.
Speaker #4: Okay. That is for the two new HAMs. When do we expect the AD?
Speaker #2: They will start in Q3 actually. That's right.
Speaker #4: Do we expect an AD in Q3? The ADs for two new HAMs.
Speaker #2: two HAMs. Yeah. Yeah, yeah. Q3 we are expecting AD.
Speaker #4: And the older mining project? Last year's mining project?
Speaker #2: So last year mining project in the Chhattisgarh actually. So this project has got only the forest clearance one stage only cleared. The stage clearance two has not come.
Speaker #2: So it will take further actually around 8 to 10 months to start the project. But what are the project in Kushmunda Chhattisgarh recently we got actually.
Speaker #2: That project is going to start in within one month actually.
Speaker #4: The older one will start in FY28 only probably.
Speaker #2: For that 28 only actually. Yeah.
Speaker #4: Okay. So how is the execution going on in the water pipeline order and what revenue we target for next two years, 27, 28?
Speaker #2: So water pipeline project is now initially there was some challenge in that project but that project is doing good actually. So order book is left out around 830 crores is there.
Speaker #2: So this year definitely we are target to do somewhere around 300 around 300 to 400 crores in this year. And balance in the next year.
Speaker #4: Okay. For year, year as a whole, what margin are we targeting for 27 and 28?
Speaker #2: Because really because this you have seen the Q1 as well as Q2 also. So margin will be the same only but definitely from Q3 well the execution of this our HAM project and our mining project will start.
Speaker #2: So Q3, Q4 margin should be good actually. So but our it will be somewhere end of around 11 to 12 percent EBITDA will be there in Q3, Q4.
Speaker #2: And definitely in next year actually it should be better because once all project will in the full operational capacity then definitely once turnover will be more.
Speaker #2: So corresponding our EBITDA will be more. So but average around 12 to 13 percent of EBITDA we can achieve.
Speaker #4: In next year. And for FY27 it could be something around 9, 10 percent.
Speaker #2: Ha, 9. Because Q3, Q4 will be only around around 10 to 11 percent. So average will be around you can say 9, 8 to 9 percent will be there.
Speaker #4: Okay. Okay. Sir, lastly, on the irrigation recovery, so what are our expectations? How do you see those coming down? Did we have any problems recently with the ministry?
Speaker #2: Yeah, yeah, sir. The recent talks this week developments we speak about there had been a positive discussion with finance ministry as well with the irrigation department as because of the lesser rates that are happening and expecting huge crisis of water into Hyderabad city kind of thing.
Speaker #2: And our project one of that package four stands very suitable for them to pump out some water in emergencies and all that. So they are now considering to speed it up actually.
Speaker #2: So for that they they thought they will pay in installments. They even asked us to continue for a speedy working up. So I think earlier also this discussion was done by CMO but right now they are very serious.
Speaker #2: They are talking about installment payments there was they said every month they'll be paying us around 80, 90 crores kind of arrangement which they said within I think almost 650 crore is outstanding on the that project.
Speaker #2: And again there is some RE the revised estimate is also there. Which is more than 7, 800 crore. So I think this 650 crore part they said they'll be paying in 6, 7 installment.
Speaker #2: Maybe they have spoken about 10 installment but we said it's not possible if you go for 10 installment it will run in a year.
Speaker #2: Time and we'll be losing a lot of money towards the interest payments only because the delay has been so much. And further delay is not acceptable to us.
Speaker #2: So they said that they will try to adjust in 5 to 6 installments. I think some positive news if they pay first installment then definitely we will see that some something is happening on that front actually.
Speaker #2: So again some positive discussion is there that's which I'm sharing. Later we have to see what happens. But I think this time they are serious.
Speaker #2: This time they are serious I think.
Speaker #4: Sir, for this year we can expect something around 600 crores from the government in 27.
Speaker #2: 600 crore yeah it's actually better. They said about say 5, 6 installments they were talking about that 650 crores only. And that RE concerned I have a submission you know that there is a committee technical committee has cleared that the revised estimate has to be sanctioned by the government.
Speaker #2: So I think that is constituted by the same government itself. So they have decided that this is a genuine thing and it could be paid.
Speaker #2: So I think it needs finance ministry approval as well irrigation ministry approval after that committee. Then they they should make a GO then it will come into payment.
Speaker #2: So that may take 5, 6 months process. So I think once they get over with this payments they will start doing that also. Kind of that.
Speaker #2: Right now only dispatch news is with me sir.
Speaker #4: Okay. Can you expect 4 to 500 crores coming in this year?
Speaker #2: Yes of course. I'm I'm expecting.
Speaker #4: Okay. Okay. And sir lastly out of the irrigation book of 60, 85 crores as of June what would be the unbuilt portion where revenue has already been dismissed?
Speaker #2: Around 825 crores is there.
Speaker #4: 825 recognized already.
Speaker #2: Yeah, yeah.
Speaker #4: Okay. And so what would be the HAM deters as of June?
Speaker #2: HAM deters as of June is 178 crores.
Speaker #4: Okay. Okay. Thank you sir. Those are my questions.
Speaker #2: Sure. Thank you.
Speaker #1: Thank you. Next question comes on the line of Shravan Shah, Dalt Capital. Please go ahead.
Speaker #4: Hi sir. Sir, couple of questions.
Speaker #2: Good morning.
Speaker #4: Good morning sir.
Speaker #2: Good sir.
Speaker #4: Yeah. Sir, couple yeah. Sir, couple of things also. First, what is the value of L1 currently? Second, how many value of projects that we have bidded and where bid is yet to open?
Speaker #2: Sir, around 1,500 we have L1 sir announced but I think L1 is set to issue. Few are in Chennai and few are in Hyderabad city actually.
Speaker #2: So apart from that pipeline though we have submitted couple of bids I don't know I'm not very sure about things what is happening there.
Speaker #2: Yes sir.
Speaker #4: Okay. Okay. Okay. Second sir, in terms of a CAPEX in Q1, how much we have done and now this mining will also start. So overall in both the mining how much CAPEX we need to do and in FY 27 how much and in FY 28 how much we are planning to do the CAPEX for that?
Speaker #2: Yes sir. Actually that the first 130 mine we speak about sir there some land acquisition is still going on sir. I think we expect around 5 months to 5 months to 6 months that can happen for the land acquisition.
Speaker #2: So after that I think we'll have to deploy equipment and all that. There also we'll be needing about say 3, 400 crore 350 to 400 crore roughly the equipment will be required.
Speaker #2: Second I talk about the Kushmunda mine which is now on execution. I think we have been issued LOA one and a half month back and now it's they are insisting us to start the work but they have given that 110 dumpers the minimum capacity to be started with the OB removals.
Speaker #2: So those equipment which we don't have and we are started procuring them right now I think appointed date is expected in first week of September.
Speaker #2: In fact they are insisting us to take from August itself but August is Kushmunda there is a big rain that is happening I think nonstop rains are happening there.
Speaker #2: We are trying to prepare that road widenings and all because that hall road we call it as hall road hall road is not prepared.
Speaker #2: So that widening we are doing because 110 movement earlier we will be needing 30 meter wider road is required. That we are unable to do because they daily there is rain going on.
Speaker #2: So then we are we are refusing to take the appointed date because you you cannot insist us to take an appointed date in the rainy season and ask us to do some progress by which we will fall into issues.
Speaker #2: So which they are considering I think first week they are talking about appointed date to happen. Most probably I think it September first week onwards it should grow go dry.
Speaker #2: We are also expecting that. So definitely I think that will come into operation from first second week of September sir. And equipment also we have purchased enough.
Speaker #2: I think around 500 to 600 crore equipment we need to be deployed. Certain we are planning old. That's why I'm saying that vague word between 500 and 600.
Speaker #2: So certain old equipments are can be used for cold transportation and all. So which we are trying to use.
Speaker #4: So total CAPEX for Kushmunda is 500 to 600 crore or 500 to 600 crore dumpers we are saying.
Speaker #2: No sir. Everything. Actually it's put together. You know there is there we need surface miners, dumpers, excavators and then dozers, hall road preparation and maintenance of the road will be used by the graders.
Speaker #2: And supporting other equipment like lighting equipment and then you know the other what do you call cold dumpers and then surface miners. All that put together we are talking about.
Speaker #4: Okay. So both put together close to a kind of a 900, 1,000 crore CAPEX is there. So in Q1 how much sir we have already spent and in portfolio FY 27, 27 how we look at in terms of CAPEX for this?
Speaker #2: Actually sir Q1 we spent nothing. I think Q2 these things are coming up. I think almost around 200, 250 crores we have already given orders.
Speaker #2: Rest of it we'll be giving it because you know the land is not fully available there also. But in available land we are trying to start around 46 hectares they are supposed to give us.
Speaker #2: Which will run our show for 1 to 1 and a half years. So meanwhile that Riddhi village is there. Riddhi village need to be acquired.
Speaker #2: That if you acquire Riddhi village in 1 to 1 year time definitely we'll be able to make a clear stretch for another 2 to 2 and a half years.
Speaker #2: So it goes like that sir actually.
Speaker #4: Okay. Q1 we did only 14 crores of the CAPEX. Okay. So overall if we yeah. Venkat sir so overall we if we have to building in terms of number for CAPEX so for FY 27, 28 including this mining and others how much CAPEX one can build in.
Speaker #4: So accordingly the question is how one can look at the depreciation and when it will start inching up.
Speaker #2: Because all this CAPEX we will take a certain phase wise only. So definitely Kushmunda work is going on. So there will be more and for Jharkhand project because it will take further around 9 to 10 months to start.
Speaker #2: So as far as Kushmunda is concerned definitely that is phase wise. So maybe this year we will do somewhere 250 to 300 crores. And balance if available land is there so we will do in the next year.
Speaker #2: Actually the department is insisting us to fully mobilization. They are assuring that we will not keep your equipment idle. We'll even give from that is actually FCCL is doing one patch.
Speaker #2: Out of which they are using only 45 to 50 percent of their patch only. So other patch is free to do some work. So they are asking us unless your Riddhi village is vacated we'll be accommodating there also.
Speaker #2: That's what they are saying. So definitely I think it has some meaning. So 60 to 70 percent 80 percent of population we need we'll have to do this year if they insist.
Speaker #4: So next year then the CAPEX would be of 5, there. Obviously the phase wise is for broadly if I have to break it down so FY 28 roughly 400, 500 or 5, 600 crore kind of a CAPEX will be there.
Speaker #2: Actually sir this year I think Kushmunda you can take 400 we'll be doing this year. 400, 450. Up to 450 we'll touch. Then Banwadi if it happens you know that is around 200 this year we'll have to do.
Speaker #2: Because there we need we can use lot of old equipment. There is no restriction on using the high capacity higher capacity equipment. So there you are free to use whatever the equipment you have.
Speaker #2: You can do the mining. So all our road equipment which they were working if they are not busy I can deploy and do that.
Speaker #2: Yeah. Yeah.
Speaker #4: Okay. So from the depreciation then how one can look at so this quarter 10 crore was there.
Speaker #2: Sir. Actually that's what I I couldn't get the figure. Actually I'm I have asked our team to calculate it properly. You know what happens there is around see on overall Kushmunda if you take I'm just talking about an example.
Speaker #2: It is almost around 5 to 600 crore means 550 crores you can take for that matter. But the turnover you can expect and with that equipment is around 400 crores.
Speaker #2: So there the depreciation is touched heavily. So I don't know what what sort of EBITDA that will fetch because it's not like roads. It's no you know roads we used to deploy 10 percent of the entire project cost that is this thing.
Speaker #2: But every year we used to get even if I take a 1,500 crore project 7, 800 crores will directly come in an year. So that that is distributed quite in a proper way for the highways.
Speaker #2: But here complete equipment base and labor base. And HSD the diesel. All three are major components. Nothing else is other thing. So here quite difficult for me to take but I'm very sure you know while quoting the bid or while assessing my even after bid we have done lot of practical data collected from various other players and all that.
Speaker #2: And with the different manufacturers we have collected the data. After that data I'm very confident that we'll be able to make patch level about 6 plus.
Speaker #4: Okay. Okay. But broadly 7, 8 years we will be depreciating whatever the CAPEX that we do. We will depreciate over 7, 8 years. That's the way one can look at broadly.
Speaker #2: Sir. Actually there are we are working out different ways. You know one one sort of method which we what we started for this dumpers you know that catapular is offering every two years buyback policy.
Speaker #2: And that is working out much cheaper for us. You know because the maintenance cost after second year is going up like anything. For that dumpers.
Speaker #2: So what we are also planning to go buyback method only. So and they are sure around 75 percent of return to us. After two years.
Speaker #2: So completely we use for two years again we replace with the new truck.
Speaker #4: New truck.
Speaker #2: So that you know efficiency of the trucks is good and fuel efficiency is good. And maintenance is less. So with that I think the capital cost what we are anchoring the differential capital cost what we are anchoring even we take it into the consideration we are in good profit for that.
Speaker #2: So such methods are there for catapular equipment. So even the Komatsu dumpers we have placed in order because because of the urgency we even have to choose that catapular grade equipment also.
Speaker #2: The Komatsu equipment. That Komatsu is also offering similar type of buybacks. We have insisted that they agreed for that. So we will have that.
Speaker #2: But like certain equipments are surface miners and then certain dozers and all that they don't have this type of arrangement. Even for coal equipment is also not having such an arrangement.
Speaker #2: So there we'll have to take it for five years and then scrap it and then go for the new ones. Every five years cycle we are taking sir.
Speaker #4: Okay. Okay. Got it sir. Thank you and all the best sir.
Speaker #2: But surface miner being a higher cost equipment that we are continuing for eight years. Because that surface miner each one is costing about say 13 crore.
Speaker #2: And we'll be requiring four numbers right now. And if if at all any delay that happens we'll have to induce one more. So five up to five itself is becoming a bigger ticket.
Speaker #2: So that we will continue for this thing. So the certain pattern is there. Which we have decided by which company can make good margins.
Speaker #4: Okay. Okay. Got it sir. Thank you and all the best.
Speaker #2: You're welcome. Thank you.
Speaker #1: Thank you. Next question comes on the line of Faisal Hawa with HG Avar Company. Please go ahead.
Speaker #4: Sir. Now that the CAPEX at least for the coming year is only on account of the mining project. Why are we not giving a larger dividend or a suitable buyback?
Speaker #2: Yes sir. Buyback we are considering sir. We'll come back on that. I think most of the decisions are getting done a final meeting need to be concluded to come back on that.
Speaker #2: Second sir that CAPEX that is happening in CAPEX come thing sir. CAPEX thing concerned definitely that coal mines we have to do and certain maintenance CAPEX is also there in that actually.
Speaker #2: You know that most of the projects got completed and there the equipments they become little bit older and not viable for operation. Those we have deciding and we are replacing with the new ones.
Speaker #2: But you know the actually we have completed the two Kerala projects and then Mangalore project and Vinashi also. With all that those equipments wherever we can accommodate we will try to accommodate then after that whatever we need then those only we will try to replace.
Speaker #2: Rest of them we will just sell it and then be ready for another order to come and then deploy.
Speaker #4: Sir. It is very hard thing to note that now mining which was not even a major vertical for us has now become 45 percent of our total order book.
Speaker #4: So.
Speaker #2: Sir. Actually yeah concerned the ticket size looks bigger but year turnover will become very less actually. You know that 3,300 crores is the order size which looks at but it can give you only 400 to 350 crore turnover.
Speaker #2: And that Kushmunda mine is also 5,000 crore out of which I'm my share is about say 75 percent. That is only stood at 3,500.
Speaker #2: So like this there are lot of ifs and buts and those to be completed in five years. And Kushmunda is almost eight years we need to complete.
Speaker #2: So this is the way that is scattering sir.
Speaker #4: Sir. Is it is it like as we said stable in the future that we have many such sectors entering our order books and they really become quite significant for us.
Speaker #4: Things like solar EPC or even for example something to do with data center or even you know large bridges or dam projects.
Speaker #2: Sir. Yeah yeah sir. We we we have see main thing is that you know most of the flyovers are coming in in a in the EPC mode itself.
Speaker #2: So the minimal working capital will be required. That's it. And the other highway projects concerned most of the equipment we own and then wherever there is an equity commitment that we are just keeping it reserved.
Speaker #2: In fact the not taking the decision early on buyback proposals is one of the reasons that we are keeping preserve with our future requirements on equity as well on the CAPEX.
Speaker #2: So those things we are keeping in mind then we are moving forward. So this is the cautious call which we are trying to take actually.
Speaker #4: Sir. About the Telangana outstanding do you feel that once at least the first installment comes through then the rest of the installments will come without follow up or you will have to make rounds of government every month and try to.
Speaker #2: Sir. Actually we we have decided to make full rounds and get that at least because you know every time I have to and actually you know that is need of an hour.
Speaker #2: Now I'll be needing those that money badly. So I'm I'm making lot of efforts on that actually. And even I don't want to leave them the committed date I'll go sit there unless they write the check I'll not come back.
Speaker #2: Like that we are planning. Let us see sir how it goes.
Speaker #4: Sir. This will not be like an automatic thing. You will have to keep on following every month.
Speaker #2: Sir. Actually now see they say it's an automatic thing once we start doing we'll do every month we'll be paying you 70 crore 80 crore whatever they're saying.
Speaker #2: But unless you don't push things will not happen you know that in in Telangana government now situation is different. Earlier sir there used to we used to get actually we never used to even go for payments.
Speaker #2: We submit the bill we used to get. That gut feeling I went on a bigger order book size and I landed into this issue actually.
Speaker #4: Yeah but to your credit sir you have never taken any Andhra Pradesh orders even though you have been so close to the state and I mean we'll try to
Speaker #2: keep a close watch on it sir and we'll be pushing that very hard. Pardon sir. Pardon pardon.
Speaker #4: No. It is that you have always avoided even Andhra Pradesh orders so you have been ever careful with with outstandings. But this is these are accidents which sometime happen in business and I don't think we can blame the management for this.
Speaker #2: Yeah yeah sir. Thank you.
Speaker #1: Thank you. Next question comes on the line of Nitin from Orum Edge. Please go ahead.
Speaker #4: Yeah. Thank you for the opportunity. Sir. My line got disconnected in the initial part. So just wanted to understand what exactly we are planning in storage space.
Speaker #4: What kind of capabilities we are developing and what do we want to achieve from there? Any revenue guidance that we are taking over there?
Speaker #2: Battery storage. You are talking about battery storage?
Speaker #4: Yes sir. Yes sir.
Speaker #2: Sir. Battery storage initially we tried some bits. They went very bad actually. So right now I think we are just preparing some bits but I'm not very sure of winning a contract because the way things are moving here in India they are very wrong actually.
Speaker #2: You know and moving out that another risk is there with the with the increasing dollar price and all other external factors. It has got assigned with its own risk actually.
Speaker #2: So we are just cautiously going that's it.
Speaker #4: Understood. And you mentioned about the entire mining projects revenue and our part. So if I had to understand out of this 15,000 crore plus order book what is the expected total revenue and during what period it will get executed based on the understanding as of today?
Speaker #2: Sir. As I told excluding mining it will executed between three to three and a half years and mining project you know that one project is a five years and one project is a eight years.
Speaker #2: So based on that timeline only project is going to complete.
Speaker #4: Okay. So for this year's what will be the revenue guidance and EBITDA guidance I missed that. Sorry if you already covered that.
Speaker #2: Sir. This week this year actually we are targeting somewhere around you can say 2,200 to 2,300 crores of the revenue. With EBITDA of around eight to nine percent this year.
Speaker #2: And next year should be the good year. We are we are thinking they try to cross 300 3,000 plus with EBITDA of around 11 to 12 percent.
Speaker #4: Any new orders that are adding in these days sir will add up to our expectations. But we have not taken anything into consideration. Got it.
Speaker #4: And as in previous participant also asked about the buyback I think this may be the time considering the valuations that we are having. So what is the you know amount that you are keeping in mind?
Speaker #4: I know that decision is subject to the board but there must be some amount percentage amount that you must have kept in mind which you would like to assign towards buyback and will it be an market buyback or some other mechanism what you are considering?
Speaker #2: Yeah sir. Actually sir the there is a conclusion meetings supposed to happen sir on that. Definitely after that we will try to come out with the details.
Speaker #2: Right now it's all under assumptions only. The meeting board meeting only decide.
Speaker #4: Okay. Okay sir. Got it. Thank you and wishing you best sir.
Speaker #2: Yeah yeah. Thank you.
Speaker #1: Thank you. Next question comes on the line of Vasudev with Noama. Please go ahead.
Speaker #3: Yeah. Thank you for the opportunity. Sir. Can you just guide us the kind of revenues that we are looking to clock in irrigation pipeline and mining projects in FY27 and 28?
Speaker #2: No. Irrigation is left of if you adjusted the unwilled so irrigation order book is almost left to only 800 crores only. And out of that majorly is back to back project actually is there.
Speaker #2: And one package three is there. So this year from irrigation it made we do somewhere around 200 crores only. And pipeline is definitely 800 crores order book is there.
Speaker #2: We will do somewhere around 300 to 400 crores in pipeline project in this year.
Speaker #3: And sir from mining overall what kind of revenues can we expect this year and next year?
Speaker #2: Sir. Actually this year we are planning about say 150 crores this year. Because mining is one there are two projects but I think this year maybe by March we can only start on one.
Speaker #2: The two which is starting from September. And you know they ask for 100 ton dumpers. Actually those dumpers are likely to get delivered to the required quantum of dumpers.
Speaker #2: Are supposed to deliver by November end I think. By the time we put it put them into operation it will be few more days.
Speaker #2: So I think last quarter only we'll be able to do solid execution in that this thing. But however the quantitative happening from September with the partial available equipments so whatever best we can do we'll do.
Speaker #2: But 150 crores we are expecting from this sir. Plus or minus 30 40 crores could be 20 30 crores. Depends.
Speaker #3: Okay. And then next year how much can we target from the mining project?
Speaker #2: Sir. 400. 400 crores.
Speaker #3: Both the projects.
Speaker #2: No. Actually the only one Kushmunda I am talking about. If that starts I think Banhardi again it will be around 500 crores. Per annum.
Speaker #2: But we don't know when it will start. That's the problem actually.
Speaker #3: Okay. Okay. Got it sir. And sir in EBITDA margin like the guiding for eight to nine percent you know for the full year and you said around 11 to 12 percent in the second half.
Speaker #3: But in Q1 we already did about 15 percent. So was there any one off because even our subcontracting expenses were quite low during this quarter.
Speaker #2: Actually in this quarter actually as we already told that you know one of the we didn't actually upstream of cash surplus of around 19 crores including GST.
Speaker #2: We did in this in our deal with our investor. So that was there in actually our Q1 results. So that's why this year it looks it is it is considered that EBITDA is coming to 15 percent.
Speaker #3: Okay. So excluding of that what would be our EBITDA margins?
Speaker #2: Around five and a half percent is there.
Speaker #3: Okay. Got it sir. And sir if you can just help me with the revenue split segment size for the first quarter.
Speaker #2: Yeah. The first quarter revenue is actually from irrigation it is just three percent actually. From ham actually it will be it is 70 percent.
Speaker #2: And our EPC work it is 25 percent.
Speaker #3: Okay. And sir on the capex front you know like at the company level what is the overall capex you know that we are planning for FY27?
Speaker #2: Actually as we already informed Q1 we did around 14 crores actually. And FY27 we are planning somewhere around you can say around 350 to 400 crores actually.
Speaker #2: Including basically mining capex will be more capex. So including that it will be around 350 to 400 crores.
Speaker #3: Okay. Got it sir. And sir just some bookkeeping questions. What is the standalone debt cash and you know outstanding receivables from Telangana as of the end of the first quarter?
Speaker #2: Yeah yeah. Standalone debt is nil actually. And console debt is 1975 crores. And standalone cash is 310 crores. And console cash is 435 crores.
Speaker #2: And this basically receivables from the Telangana from package four is there 1300 crores is there actually. That is the overall receivables from irrigation will be around 1400 1450 crores is there.
Speaker #3: Okay. Got it sir. That's it from my side. Thank you.
Speaker #2: All right. Okay. Thanks sir.
Speaker #1: Thank you. Next question comes on the line of Bhavin Modi with Anand Reddy. Please go ahead.
Speaker #3: Hi sir. Thank you for the opportunity. So first question is with respect to the order book sir. You know we have the order book of around 8000 you know 700 crores.
Speaker #3: So what is the you know amount of unwilled revenue affected in in that you know order book? And second thing was with respect to the so what is the amount you know for the you know unexecuted order book for the Sombar Padu you know which we have excluded this time.
Speaker #3: And kept in the other out of order unwilled
Speaker #2: is total is around 1220 crores as there. Unwilled in our order book as of now. And your second question you know what is Sombar Padu is
Speaker #3: So last time it was around 153 crores. So what is that this time the unexecuted order book?
Speaker #2: It is it is 100 crores is there.
Speaker #3: Says around 100 crores. So for the 12 you know for the 12 20 crore if you can provide the breakup in terms of what is the unwilled revenue for the road you know for the irrigation pipeline?
Speaker #2: Irrigation is around 825 crores. And around 400 crores is rest actually.
Speaker #3: Yes sir. So thank you. Thanks. The second question was with respect to sir when I am seeing you know the numbers you know order book numbers unexecuted.
Speaker #3: So sir the Mysore Kushal Nagar you know package has still not picked up sir. So what is the reason and what are we planning for this year?
Speaker #2: Sir. Actually last three two months back I think they have given handed over full of land. Otherwise we had only five six kilometers in hand for for package five and then.
Speaker #2: Four four also. Four also was there only 30 35 percent of the land was available. Because suddenly they the local public has reverted to asking for some service road.
Speaker #2: So wherever they wanted the service road they have blocked that highway construction itself. So we that was dealt with the government and then the center government what NHA made an agreement with the state government that state government will acquire the land and then give give them for execution of that service roads.
Speaker #2: Then they would do. So actually it has taken long time for giving the police protection to vacate those people from the obstructing. So recently two months back they have vacated entire land and they gave us.
Speaker #2: Now the execution is speeded up. I think this quarter onwards things will move better actually. We are even making arrangements actually you know we are even making arrangements for going COD by December for whatever the land which they made made available for us around 30 40 percent available the land was there.
Speaker #2: On that only we would like to do the PCOD and balance will execute in the thing. Otherwise you know I am coming into if the revenues are not started on the project I am coming into kind of you know more clocked IDCs and all.
Speaker #2: So we have spot we are starting in that way also. For that.
Speaker #3: So then what we are factoring you know revenue from this two projects for the rest of the year?
Speaker #2: Sir. Actually you know entire project has to be completed entire entire project complete it should be completed by April. We are planning. April end of coming April end or May maximum.
Speaker #2: That's it. We want to close that.
Speaker #3: Okay. So one more question was with respect to you know the recent mining order that we won. So so it was I think in the partnership right 50 to 50.
Speaker #3: So are we getting the back to back 100 percent EPC? So that's why we have taken your entire amount in our order.
Speaker #2: Yes sir. Yes sir. Yes sir. I am we are doing 100 percent percent EPC. By taking back to back sir.
Speaker #3: Okay. And sir last question is you know sir now most of the you know the road players you know are also entering the elevated metro space.
Speaker #3: We have still not you know you know obviously there must be some working you know or the you know team building must be happening in the elevated metro space.
Speaker #3: So how are we looking you know at that space the elevated? Are we have we started bidding for the project in the elevated metro space?
Speaker #2: Actually sir that Odisha Bhubaneswar bid we have done. For elevated metro. But subsequently that went with the unhealthy price. So we were not there in that.
Speaker #2: Later it's got cancelled also. But I'm not going by that. But however our struggles are on to go on this have done a lot of segmental construction.
Speaker #2: So which that is easing out our this thing. And we have sorted the JV with NCC also. For going on these projects.
Speaker #3: Right sir. Understood. So in any back to back you know arrangement with any of the you know leading groups you know for example Adani or NCC you know or any of the you know big road players like Wellspun any talks which are going on?
Speaker #2: Actually sir in fact KNR they wanted them us to come in. The thing is the prices and all that were not suiting. And some pretender understanding we were asking.
Speaker #2: I think it is on. The discussion is on. Actually there are some certain southern projects only I am challenging because if you go with a third party southern projects because of the rainy seasons extended timings and all we will not be able to deliver in time.
Speaker #2: It is in south things are in control. So we would like to go in south only with the private players. So we are we are sorting certain bids sir.
Speaker #2: Those bids could not happen.
Speaker #3: But geographically sir you know like there are many bids you know which are coming up in Madhya Pradesh you know in the UP especially.
Speaker #3: So are we open to you know those states or those geographies?
Speaker #2: Sir. UPEDA I am not getting quotation because they asked for some express highways to be constructed. My express highways I have not been completed yet.
Speaker #2: Only one one we are doing. Greenfield express highway experience they are asking. So that UPEDA I am not getting qualification. So I am not participating in that.
Speaker #2: But rest of the bids I am participating.
Speaker #3: Okay sir. Thank you. Thanks a lot sir.
Speaker #2: Okay. You're welcome.
Speaker #3: Thank you. Next question comes from the line of Raj C. Maitra with incorrectly scored.
Speaker #4: Yeah please.
Speaker #3: Yeah. Hello. Yeah.
Speaker #4: Hello.
Speaker #3: Thanks for the opportunity. So this question has been already addressed after this your EBITDA margin being 5.5 percent. So what is the exact quantum I didn't get the number in that has been booked which is a one off?
Speaker #4: One off is in revenue it is around 76 crores of added in the revenue and expenditure side also it is around 30 crores has been there in expenditure side.
Speaker #4: So net 46 crores has been considered in the EBITDA. One off. As a one off. Yeah. Yeah. Thank you.
Speaker #3: Thank you. Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Sudhir Borah with Ambit Capital Private Limited.
Speaker #3: Please go ahead.
Speaker #4: Thank you sir for the opportunity. Sir I know you have talked about it earlier but just wanted to have an understanding about the margins and the IRR profile for the mining projects.
Speaker #4: Like what range are we looking at?
Speaker #2: The mining projects concerned we we have considered while bidding I think we have considered about six plus pack levels in that. You know because I am right now I am unable to I haven't calculated for that equipment component which actually generally you know we we used to have a idea on highways how EBITDA is coming up.
Speaker #2: But in this mining sector what is happening that almost five to six hundred crore worth of equipment is deployed and four four hundred crore turnover is expected around.
Speaker #2: On every year. And this is to be continued for eight years period time. So that there are certain equipments which are getting terminated on buyback basis on every two years.
Speaker #2: Certain equipment are getting terminated on five years. So all that we we need to have a detailed calculation then only we will get it get the EBITDA levels.
Speaker #2: But otherwise six plus pack levels are possible. I I we our estimate according to that.
Speaker #4: Okay. Okay sir. Got it. And sir just wanted to confirm the outstanding order book numbers on a few projects like the multi-level flyover at IIIT Hyderabad.
Speaker #4: And the two EPC projects one is the GHMC and the Shankarpalli Road at MGIT.
Speaker #2: so this is actually for Khajagowda Triple IT Junction. It is actually 459 crores is the closing order book. And MGI to to Manikonda I think you asked that is same around 83 crores is there that is sir.
Speaker #4: Okay. And the other project like three lane flyover at Kukatpally that is completed.
Speaker #2: No no that is no the Y Junction flyover still there. It is not completed. Seventy-two crores is order book is there. It has to start actually project has to start.
Speaker #4: Okay. Okay. Okay. Yes sir. So these were my questions. Thank you.
Speaker #2: Okay sir. Thank you.
Speaker #3: Thank you. We have a question that is from the line of Vaibhav Shah with GM Financial. Please go ahead.
Speaker #4: In Q1. What is the order from the revenue from water pipeline order?
Speaker #2: Revenue from?
Speaker #4: A water pipeline order revenue.
Speaker #2: because actually water pipeline is just seven crores is their revenue.
Speaker #4: But of that eight thirty crore order book what will be the unbilled portion? In water pipeline?
Speaker #2: Water pipeline is already back to back is there. So there won't be any unbilled portion in the water pipeline actually. It is a back to back work will be there actually.
Speaker #4: Okay. Okay. Thank you sir.
Speaker #2: Okay right. Okay. Thank you.
Speaker #3: Thank you. Ladies and gentlemen. As I know for the questions we have reached the end of question and answer session. I now hand the conference over to the management for closing comments.
Speaker #2: Yes. Thank you all for joining us on this call. Please reach out to our investor relations consultant Srinidhi Growth Advisor or us directly. Should you have any further queries we can now close the call.
Speaker #2: Thank you everybody.
Speaker #4: Thank you.
