Ashoka Buildcon Ltd
NSE:ASHOKA
Earnings Call Analysis
Q3-2024 Analysis
Ashoka Buildcon Ltd
The company's total income for Q3 in the financial year '24 saw a substantial increase of 36%, rising to INR 2,162 crores from INR 1,590 crores in the same period last year. This growth momentum is reflected in the nine-month financial period as well, where income surged by 20%, reaching INR 5,309 crores from a prior INR 4,410 crores. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins stood at 9.5% and 8.9% for the respective periods, indicating robust operational profitability. Further, profit after tax (PAT) tallied up to INR 87 crores and INR 174 crores respectively, pointing to the company's strong bottom-line performance.
Contractual projects are the key revenue sources, contributing 97% to total income. Notably, the third quarter saw a year-on-year income increase of 35% to INR 2,699 crores, enhancing the company's financial stature. With a reported PAT of INR 110 crores and accumulated PAT of INR 301 crores for the nine-month period ending December 2023, the financial outlook remains promising.
Stability in financial leverage is maintained with a healthy debt to equity ratio of 0.37, and a total consolidated debt at INR 6,920 crores showcases the company's effective debt management strategies. The BOT division's gross total collection climbed by 12% to INR 918 crores over nine months, adding to the company's diverse income sources and reflecting a strong operational model.
The organization is on course to monetize 50% of its assets in HAM and BOT projects by Q2 during the financial year, with deal closure anticipated within the forthcoming months. The monetization proceeds are designated to facilitate the company's growth initiatives, such as giving exits to investors and reducing debt, while the remaining may fund new projects or benefit shareholders.
Approximately INR 1,370 crores from equity stake sales will be reinvested in future projects, with flexibility in allocation over road, railway, or other PPP sector projects expected over the next 12 to 18 months. The company's participation in Mumbai Municipal Corporation projects and a broader venture into water treatment works signal an expansion strategy focused on urban infrastructure enhancement.
An estimated CapEx budget of INR 60 crores to INR 100 crores for machinery and equipment signals the company's commitment to sustain operational capabilities. The company is adopting a strategic shift towards BOT projects seeking an IRR of 15% to 16%, which allows for asset accumulation in addition to the EPC margins, catering to a different investor mindset and providing diversified revenue streams.
The company aims to maintain a growth rate of 15% to 20% and is optimistic about securing orders by Q2, potentially adding INR 6,000 crores to INR 8,000 crores to the order book next year. This positions the company for steady progress, especially with the added prospect of early orders before the end of March.
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Ladies and gentlemen, good day, and welcome to Ashoka Buildcon Limited Earnings Conference Call, hosted by Anand Rathi Shares and Stock Brokers. This conference call may contain certain forward-looking statements about the company, which are based on beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Prem Khurana from Anand Rathi Share and Stock Brokers. Thank you, and over to you, sir.
Thank you, Riya. Good afternoon, everyone. On behalf of Anand Rathi Shares and Stock Brokers, I extend a warm welcome to all of you to the Q3 FY '24 and 9-month FY '24 Earnings Call of Ashoka Buildcon.
For the call from the management, we have Mr. Satish Parakh, Managing Director of the company; and Mr. Paresh Mehta, CFO of the company with us. They'll share their views on the recent performance, the way forward, and then we'll open the floor for the -- for an interactive Q&A.
With this, I hand the floor over to the management for their opening remarks. Over to you, sir.
Yes. Thank you. Thank you, Prem. Good afternoon, everyone. Hope everyone is doing well. On behalf of Ashoka Buildcon Limited, I extend a warm welcome to everyone joining us today to discuss our business and financial results for the quarter and 9 months ended 31st December 2023.
On this call, I have Mr. Paresh Mehta, CFO of Ashoka Buildcon Limited; and SGA, our Investor Relations adviser.
Let me begin by giving a few relevant economic and sectoral news. The 2.7% hike in the budgetary allocation of road transport and highways, though small, comes on a high base and will be committed towards ongoing project, while the fresh developments will come in the form of private sector as envisaged by the government.
The government estimates that infrastructure expenditure has a multiplier effect of 2.45x on the GDP in the year of capital expenditure and 3.14x in the next year. The outlay of INR 11.11 lakh crores for infrastructure in FY '25, the availability of long-term interest-free capital expenditure loans and the implementation of 3 new railway economic corridor programs, as announced in the budget, will hold the sector in good stead.
The ministry has constructed 6,216 kilometers of national highway up to December 2023 in ongoing fiscal as compared to 5,774 kilometers constructed in the year ago. The Ministry of Road Transport and Highways is aiming to create a national record by constructing 13,813 kilometers of highway in the current fiscal year.
The Road Transport and Highway Minister -- the Road Transport and Highway Ministry will construct 14 new expressways and high-speed corridors under PPP model, totaling to 2,279 kilometers with an investment of INR 1.3 lakh crore. Efforts by Ministry are in progress of implementing agencies to expedite reconstruction activities like land acquisition, regulatory clearances and environment, forest, wildlife and no objection certificates from different authorities through frequent and proactive coordination with the state government and other concerned authorities so as to improve the progress in awarding of the contracts.
Now, on projects front, let me share. In the month of October 2023, company has received letter of award for power distribution infrastructure development project of INR 125 crores on Osmanabad from Maharashtra State Electricity Distribution Company Limited in the month of October 2023, whereas we have won EPC orders in the past few months. First, in construction of cable stayed bridge in Khammam, Telangana, for total consideration of INR 146 crores from Government of Telangana Roads and Building Department.
Secondly, company has received a letter of acceptance from CIDCO for design of -- design and construction of stilt bridge for eastern connectivity for Navi Mumbai International Airport in joint venture for a total consideration of INR 662.55 crores. Ashoka Buildcon has 51% share in this joint venture that is INR 337.9 crores.
Also company has received letter of award for the project of 6 laning of Aurangabad, Bihar, Jharkhand border section of NH-2 in the State of Bihar under Bharatmala EPC mode for a total consideration of INR 520 crores. Additional on current projects, company has received certificate of CoD for HAM project of NHAI in October 2023 for 4-laning of Tumkur-Shivamogga section in Karnataka, Package III. Whereas, for Package I, Tumkur-Shivamogga section, company has received CoD for a stretch of further 7.55 kilometers on November 21, 2023, in addition to the earlier stretch of 34.73 kilometers, which was received in October 26, 2021. That is the first CoD, and as the SPV is eligible for receipt of annuity payments from NHAI for the additional portion of the first CoD date itself. On asset monetization part, subsequent to the share purchase agreement signed by Mahanagar Gas Limited with Unison Enviro Private Limited and its shareholders, Ashoka Buildcon Limited and an investment fund managed by Morgan Stanley India Infrastructure for acquisition of 100% stake of ABL and MSII in UEPL, the transaction process has been completed. The deal has been closed at the final equity consideration of INR 562.09 crores, out of which company has received INR 286.67 crores for its 51% stake. The company and its subsidiary, Ashoka Construction Limited, are making progress towards the divestment of their entire stake in specific subsidiaries that are awarded by NHAI for the construction or operation of road projects on HAM and BOT basis. Considering the high likelihood that the sale will be finalized within the following 12 months, these completed project assets and liabilities continue to be classified as held for sale.
Coming to the order book. As on 31st December 2023, our balance order book stands at INR 13,167 crores. The breakup of the order book is for the roads and railway projects compromised around INR 6,816 crores, which is 52% of the total order book. Among the road order book projects, HAM projects are to the tune of INR 1,188 crores and EPC road projects are worth INR 4,475 crores. Railway is around INR 1,153 crores. Power T&D accounts for around INR 5,573 crores, which is approximately 42% of the total order book. The total EPC Building segment is INR 746 crores, which is 6% of total order book and EPC work of CGD business comprises of around INR 32 crores. Order book as on date is INR 14,171 crores, allow me to reiterate that our primary focus remains on maintaining sustainable EPC business in segments encompassing highways, railways, power transmission and distribution as well as buildings.
This is all from my side. I would now request Mr. Paresh Mehta to present the financial performance. Thank you.
Thank you, sir. Good afternoon to one and all present on this call. The results, investors presentation and the press release have been uploaded on the stock exchange and the company website. I'm sure you must have had the time to go through the same.
Now I will present the financial results for the quarter and 9 months ended 31st December 2023. Starting with the standalone numbers. The total income for Q3 FY '24 stood at INR 2,162 crores as compared to INR 1,590 crores in the corresponding quarter last year, registering a growth of 36%.
EBITDA for the quarter stood at INR 205 crores with EBITDA margin of 9.5%. The reported PBT stood at INR 115 crores and PAT at INR 87 crores. Revenue from contractual projects contributed to 97% of the total income in Q3 FY '24, whereas out of the total contractual revenue, road EPC contributed 56%, power EPC contributed 32% and other segments such as railways, buildings, EPC and others, CGD, contributed 12%.
For 9 months FY '24, the total income stood at INR 5,309 crores as compared to INR 4,410 crores in the corresponding period last year, registering a growth of 20%. EBITDA for the period stood at INR 473 crores with EBITDA margins of 8.9%. The reported PBT stood at INR 232 crores and PAT is INR 174 crores. Our debt to equity stood at 0.37 as of 31st December 2023.
Coming to the consolidated results. The total income for Q3 FY '24 grew by 35% year-on-year to INR 2,699 crores as compared to INR 1,996 crores in Q3 FY '23. EBITDA stood at INR 639 crores for Q3 FY '24 with a margin of 23.7%. Reported profit after tax stood at INR 110 crores in Q3 FY '24. For 9 months FY '24, the total income stood at INR 6,867 crores as compared to INR 5,757 crores in the corresponding period last year, registering a growth of 19%. EBITDA for the period stood at INR 1,737 crores with EBITDA margins of 25.3%. The reported PBT stood at INR 453 crores and PAT at INR 301 crores.
Total consolidated debt as on 31st December 2023, stood at INR 6,920 crores, of which project debt is INR 5,718 crores. NCD stood at INR 100 crores at ACL level. The standalone debt is at INR 1,103 crores, which comprises of INR 224 crores of equipment and term loan and INR 878 crores of working capital loan. Towards our BOT division, during Q3 FY '24, it recorded a gross total collection of INR 314 crores as against INR 282 crores in Q3 FY '23, whereas in 9 months FY '24, it recorded a gross total collection of INR 918 crores as against INR 818 crores in 9-month FY '23, recording a growth of 12%.
With this, we now open the floor for question and answers. Thank you.
[Operator Instructions] The first question is from the line of Jiten Rushi from Axis Capital.
Yes. Sir, can you give us a revenue breakup among the sectors in roads and EPCs and others?
So for Q3 FY '24, the Road revenue was INR 1,166 crores. For Power, it was INR 659 crores. For Railways, it was INR 164 crores. And for Buildings, it was INR 81 crores. Another INR 17 crores was pertaining to other businesses like CGD and others.
And sir, for 9 months, if possible?
For 9 months, on a total, for Roads, INR 3,194 crores; for Power, INR 1,184 crores; for Railway, INR 487 crores; for Buildings, INR 174 crores; and for Others, which is INR 61 crores.
Sir, do we have something which you can compare for the last year if possible to share here?
Pardon?
If you have the last year same quarter and 9 months' number, if it is possible to share here?
Yes I can give that number. For Roads, the number for last year was -- '22-'23 was INR 2,982 crores; Power was INR 452 crores; Railway was INR 476 crores; Buildings was INR 88 crores and other projects was INR 155 crores.
This is for the full year, right, sir?
Yes. This is for 9 months.
Nine months. Okay. Okay. And sir, in terms of the guidance for this year in the extent of the revenue and EBITDA and inflow. And so can you just throw some light on that, sir?
So as we have been discussing in the past calls also, the EBITDA margins have been low for the past few quarters, but we expect by Q1, Q2, EBITDA should improve by 1%, 1.5% at least and then stabilize around 11%, 11.5%.
And in terms of guidance on the top line?
So for this year, as we have seen around -- we maintain a growth -- try to maintain a growth of 15% to 20%. It's already for the 9 months we reached 20%, should be able to take that number.
Sir, any outstanding bid pipeline which you are targeting for the next 2 months, if at all? And the inflow for this year -- final inflow we are targeting and probably next year in terms of inflow, if you can throw some light on this?
Yes. So there are bids already submitted which are yet to open, are around INR 13,000 crores, and there is a bid pipeline of around INR 95,000 crores, which will be lined up to bid. But we don't know when elections will be declared and when we will have block on bidding. So bidding still may happen, but then award may not happen during election session.
Election time. So basically with INR 13,000 crore, I'm assuming it's from the road sector and INR 95,000 crores also there is a mix of roads and the railways and...
The INR 13,000 crores is road sector.
And this INR 95,000 crores also is roads?
Yes, INR 95,000 crores also road.
And sir, any guidance in terms of inflows for next year, if possible?
Guidance will all depend upon elections, like they may flow up into Q1. So end of Q1 and Q2, we see visibility of getting good orders. So we should...
Next question is from the line of Deepesh Agarwal from UTI AMC.
Sir, my first question is on, if I look at our T&D segment, the order book is actually trending downwards, sir, and -- though there is a good ordering in the sector, so any reason why we are not actually taking much orders on the T&D side despite these strong tailwinds in the industry?
In fact, we have done good orders in T&D.
Okay. Sir, sequentially, the order book is going down despite a stronger ordering in the sector.
No, sequentially, we have gone up in T&D section. What we bagged 2 quarters or before would add up to a good number.
Okay. Okay. The, sir, other question is actually there could be a lot of BOT projects, which may come up in the next 1 or 2 years, so would we be open to the BOT projects?
Yes, we are looking at BOT projects seriously, and we are participating in the upcoming projects.
Sure. And, sir, we -- in the past, we have executed 1 renewable project, a solar EPC project, given that a lot of orders are likely to come in for solar, would we be again actually going and looking at those kinds of projects?
Yes. So earlier solar project was with fixed price for modules. Now projects are coming up with balance of cost, like models are being supplied by the employer or they are giving escalation on modules. So those kind of projects where escalation will be given, definitely, we are looking at those EPC, as we have a team in place now.
Sure. And, sir, lastly, if you can update us on the monetization of different assets, and also, once the monetization is done, what is thought process in terms of the usage of the proceeds?
Yes. So on the monetization of assets, we have typically 11 HAM projects, which are on the board and 5 BOT projects, which are on the board, which are in the process of various stages of either diligence, binding offer or at SPA, execution stage. So we expect the HAM projects' SPA to be signed off in -- before this year-end. And by Q1 -- or between Q1 and Q2 to get monetization of at least 50% of the assets during the -- and the balance in the balance period. On the BOT projects, we are in discussion with potential investors for a binding offer, and we expect to freeze on them in the near future in a couple of months' time and then go into documentation and closure of the transaction. On the Jaora-Nayagaon project, we are already in discussion with -- we have applied to the implementing agency for the NOC for transfer of shares. In the Chennai IRR project, we are in the process of acquiring the 50% stake, which is held by our partner. Once that is acquired, we'll be in a position to sell the same. Then, on the last asset, that is Mahanagar -- the CGD business, which we had, we have already told that we have already monetized the asset. The sale proceeds was credited in January, and so that transaction is over, where we realized INR 286 crores. So this is in the nutshell for monetization of assets.
So fair to say in next 6 months all the 4 pending transactions would get completed?
Not from a closing perspective, but reasonably from signing up with a potential investor.
Okay. Sure. And, sir, any thoughts what we will do with the cash because you will receive a substantial amount of cash?
So partly money will be utilized to give the exit to SBI Macquarie which is pending. Second part of the money will also be used to reduce debt on the stand-alone level of ACL. Otherwise, there's not really much debt otherwise. And the balance as in when it comes, we can decide to utilize the money for newer projects or for the benefit of the investors.
Next question is from the line of Rohit from Antique Stockbroking Limited.
Sir, when I got a backlog and [Technical Difficulty]
Sorry to interrupt, we are not able to hear you.
Can you hear me now?
Sir, there is a breakage in your line.
Can you hear me now?
Yes, please go ahead. Yes.
Yes. So basically, sir, my question is that we have an order backlog which may not be from the execution book-bill perspective not more than 2x. And given a strong execution in FY '24, do you think FY '25 will be a flattish year? Because the model code of conduct will be there at least till the end of May. So an order inflow will also be very unlikely even if it comes through the letter of award when it happened. So do you think the execution would be like flattish growth in next year?
Not really. We are hopeful of getting orders in Q2. And definitely, we'll start execution on that in second half. So we will try to keep up with the pace of what we are doing now.
Okay. Sir, my second question has to do with the normalization of the margins, EBITDA margins. When can we expect that double-digit number to be back?
So as we have been speaking in the past also, we expect by Q1 and Q2, either of these quarters, Q1 or Q2, we should be in the double-digit, around 10% EBITDA margins and above.
Sure. And my final question will be on the plan to go back to the BOT road projects. Sir, do we have any plan where we have an arrangement with a potential fund or an investor to partly finance the project because all these BOT projects will require 30% of equity? It will be quite cash-guzzler or maybe at least capital intensive in the beginning part. So how do we plan to do those capital allocation part?
We are in discussions with various investors. But we've not finalized any arrangement yet.
Next question is from the line of [ Akhilesh B. ], an individual investor.
Congratulations on a good performance. Sir, my question is what is the current outstanding liability we have to SBI Macquarie with all the accrued, carry, et cetera, as on 31st December?
Approximately INR 1,370 crores.
And are we accruing any more carry on this? I think, 8% you had mentioned earlier, what is the mechanism?
At 9%, and then the next quarter at 10%. So for this quarter at 9%, December quarter, and for March quarter at 10%. But it is all capped for 15%, 26% (sic) [ INR 1,526 crores ].
Sorry, it is capped for? Could you explain that, please?
INR 1,526 crores.
So that will be the upper limit. Beyond that, our liability will not increase.
Correct.
Okay. And sir, have you given any thought to the water EPC segment? Is there any reason we cannot get into this segment? There seemed to be substantially better margins in that segment compared to our existing segments.
So water EPC, we are already executing one project for Mumbai Municipal Corporation. And we are very much in this segment. So all the treatment plants and water treatment works, we are participating now.
Okay. So we may do it in a bigger way in the future.
EPC player with railways, power, buildings and water EPC.
Next question is from the line of [ Kawal ] from Samar Wealth.
Sir, my question is, how does the company intend to deploy the received amount from the sale to equity to HAM player, like will the funds be allocated to any specific road or railway project?
We could not hear the last part, madam, could you repeat?
Yes, sir. I'm saying what does the company intend to deploy the received amount from the sale of equity stakes to HAM player? Will these funds be allocated for any specific road or railway or PPP sector or project?
So this will -- the opportunities as they are coming. So as we have already spoken, there are BOT opportunities that have come up, part of it could be utilized for investment in BOT projects to a certain extent. So it will all depend on opportunity. We will come up in the next 12 to 18 months.
Okay. Got it, sir. Sir, my next question is, is there any CapEx plan for the next year?
Is there any?
Is there any CapEx plan for the next year?
So that is a continuous process for every year. CapEx is there, machineries are bought every year, so approximately in the range of INR 60 crores to INR 100 crores is the general CapEx plan for equipment and machinery.
[Operator Instructions] Next question is from the line of Jyoti Gupta from Nirmal Bang.
Just wanted to ask, there have been -- last 2, 3 years, we've had a foray into NHAI. Now the trend is going more towards BOT. What's the kind of margin can we expect, and it seems earlier BOT was not such a popular concept for construction companies, but now companies are open to take BOT, those projects. I'd like to understand what's the kind of margin we expect from BOT vis-Ã -vis NHAI because the model is very different?
So I understand you want margin on a BOT project.
BOT project...
B-O-T project, right?
BOT project -- Road project, yes.
See, as a concept, BOT projects are EPC plus asset holding capacity. So in a BOT project, definitely, both aspects are differently looked at. The EPC margins are what we generally target at. And then we'll have to have patience on the capital invested to amortize the returns over a period of the concession life or to be able to monetize the asset. So they are definitely -- they give different opportunities vis-Ã -vis an EPC, but it definitely covers the EPC ability to do the transaction -- to do the business.
But is that covered -- I mean like I just wanted to have a ballpark figure in terms of like if it was X in NHAI, do you expect 1.5% X, at least some sort of margin must be there in BOT, which should actually encourage the construction companies to pick up BOT projects. I mean, just to understand, because going forward, we'll have more of BOT projects rather than NHAI, correct me if I'm wrong.
Yes. So basically, -- see, an EPC contract -- the BOT projects are typically a mindset of people who want to hold assets and who are expecting a yield or an IRR. So from that perspective, the viewpoint would be different for everybody. Anybody who is expecting a yield of approximately IRR of 15% to 16%, would -- and with the -- accordingly the number stacks up, they would be interested in bidding for such projects.
Next question is from the line of Vaibhav Shah from JM Financial Limited.
What would be your order inflow guidance for FY '24? And what was the inflow in the first 9 months?
So next year guidance is like we should be getting orders from Q2 onwards, and we expect at least INR 6,000 crores to INR 8,000 crores of order book adding next year.
And what is in the order inflow in FY -- in 9 months?
9 months, I'll just come back on this.
And guidance for the current year, FY '24?
'24, I'm not sure because now already we are in Feb -- mid Feb, so whatever have been bidded, once those bids open, we'll know how much we get. So around INR 13,000 crores of bids we are waiting for yet to open.
Okay. And sir, there was a sharp increase in interest on a quarter-on-quarter basis from INR 52 crores to INR 62 crores in third quarter. What was the reason for the same?
So interest increase is -- basically 1 reason is we had taken a term loan from Aditya Birla Finance in September end, which was also in the last quarter financials, which had an impact of approximately INR 2.25 crores. And there was a one-off BG, bank guarantee, charges of INR 5 crores for international project, which was accounted for in this quarter due to certain changes in the guarantees, which was a one-off.
Okay. And sir, what was the reason for the increase in the carry on the SBI Macquarie liability?
That was more of a commercial from their perspective. And as far as we were getting a protection on the total INR 1,526 crores, which was what their ask was.
So for FY '25, it would be 10%?
Yes. It's not yet decided. It will be decided post 1st April.
Okay. And sir, lastly, what is the execution status for the water project in Maharashtra in Mumbai?
So Mumbai project after -- post-monsoon has started well now. So we are in advanced stage of execution now.
Okay. And when you expect it to complete the project?
So this will take another 18 months to complete.
Next question is from the line of Vishal Periwal from IDBI.
I have 1 question. Sir, based on our outstanding order book of INR 14,000-odd crores, which is including inflows, what kind of revenue we can expect in FY '25 to execute, assuming like probably order inflow will be muted sector-wise? So how do you see FY '25 in terms of revenue based on the current book?
Current book -- based on the current book, we should be flattish. But if we are able to bag orders in Q2, then definitely 15% to 20% rise we can expect.
Okay. So largely, I mean, it could be like second half or probably like third, fourth quarter can be heavy, that's what we can say that, right?
Q2 onwards, we should start getting orders, and some orders, we may get even before this March end.
Next question is from the line of Saif [ Saurav ] Gujar from ICICI Prudential AMC.
Sir, just on the overseas order book, which is around INR 1,300 crores, what is the status about execution there? Which are the major projects comprising in this? And any tentative timelines when the execution starts or is going on?
So major project is Guyana, where we have completed around 36% of the job. And now like Q1 onwards, we will have all the retail layers being done. So there will be a good progress on that project going ahead.
Bangladesh, we have started well. There is a land acquisition issue on 50% of the land. Balance 50%, we are progressing well, where all structures are completed and execution is in full swing. So once balance 9-kilometer is released, we can see good progress next year. The third project which we are doing is for power distribution in West Africa, in Benin. There the materials have been approved, and material supplies would start, and execution would start in Q1.
Okay. And just how much is the outstanding order book from these projects, Guyana and Bangladesh, out of the INR 1,300 crores?
That's the balanced order book, which numbers you're talking about.
So for just these 2 projects, out of the INR 1,300 crores -- sorry, I would have missed the number.
These 2 are INR 1,100 crores.
Next question is from the line of Vasudev from Nuvama.
Just a few questions from my side. So firstly, if you can give, what is the total equity requirement for all the HAM projects? And like how much have you already infused? And how much is still pending?
So the equity requirement for the major 2 projects that is Bettadahalli Shivamogga and Basawantpur Singnodi is approximately INR 191 crores.
Okay. And how much have you already infused from this?
So this is the balance required to be done from 1st January.
Okay. Got it. And, sir, secondly, on the bid pipeline front, you said that we are looking at INR 95,000 crores in the Road segment. So if possible, can you give some color on the other segments as well?
Other segment, bidding pipeline is not committed kind of this thing. We have to look for different states, basically.
Okay. Okay. That's okay. And sir, what is the CapEx that we've done in Q3? And how much are we expecting for the full year then?
I'll just come back on that.
Okay, sure, sir. And just lastly, do we have any definitive timelines where we're closing -- looking to close those Jaora-Nayagaon, the Chennai ORR deals?
So Jaora-Nayagaon will -- is dependent on government NOC. So once that is received, it should be happening in 2 to 3 months' time. Chennai ORR, it's more of a commercial process, may take a couple of months or more, depending on how the commercials go.
[Operator Instructions] Next question is from the line of Jyoti Gupta from Nirmal Bang.
Sir, my question is the code of conduct will settle on the 25th of February? Are we expecting, like there was this -- when we're talking to competition, apparently, there is some INR 13,000-odd crores or maybe more of the orders which may be offloaded before the code of conduct. What is your take on that?
We are participating in various bids. And I said INR 13,000 crores, where we have already participated, yet to open, and new bids are continuously coming. Our participation is there in most of the bids.
Okay. And so hopefully, before the code of conduct, they should actually be awarding all these projects, isn't it? So is it like during the code of conduct, they're not going to give out -- they will not be awarding any projects between maybe March to May [Foreign Language]?
[Foreign Language].
Next question is from the line of Bhavin Vithlani from SBI Mutual Funds.
I just missed the number. You mentioned INR 5,800 crores is the project debt and INR 1,100 crores is the stand-alone debt. Now, you've received the money after the quarter ended for the sale of the asset. So is the debt kind of reduced by that quantum commensurately?
Yes, yes. So that has typically gone into reducing their stand-alone working capital debt.
And what was the project debt for that asset, which has reduced from the INR 4,800 crores of project debt held for sale?
INR 200 crores.
Okay. That's it. The second is, in the stand-alone, we've seen a very significant increase in the finance cost for this quarter. Could you just help us, because when we looked at on a Y-o-Y basis, the stand-alone debt has not gone up to the extent of the increase in the interest cost?
Yes. So on the, what do you call, finance cost, as I have already said now -- before, INR 5 crores is the impact of bank guarantee charges on guarantees given, which has been debited in this quarter for the international projects. And INR 2.5 crores is pertaining to Aditya Birla Finance, which was additional debt taken as of 31st -- on 30th September -- which was taken somewhere around 27th September 2023. So -- and the total impact of interest cost is a mix of interest on loans as well as interest on mobilization in demands, which is accounted as finance costs.
Okay. So on a weighted average basis for you taking these exceptional items out, what is the underlying increase in the rate of interest as for the stand-alone business?
From year to year?
Yes, please.
This would be approximately 0.75% to 1%.
Okay. And what would it be currently at?
So our CC limits would be in the range of 9.1% to 9.4%.
Okay. The next question is also asked by the previous participant. In terms of -- as the mix of NHAI is expected to tilt towards the BOT projects, and we are also looking to sell these assets, but the timing is getting pushed out. Would you be open to taking these projects? And what's the kind of -- once the balance sheet freeze, what's the kind of potential capacity that will get released on the asset sale so that -- just want to know that what is the quantum of BOT that as you as promoter will be comfortable taking on the next round of BOT?
So comfort-wise, around INR 10,000 crores of BOT is not a challenge for us because we will be having surplus capital once we monetize all the assets. So we'll be having enough equity for doing projects worth INR 10,000 crores, and we can always look for an investor partner, right, from the bidding stage of BOT projects. So our experience on BOT will definitely help us select proper project and execute them timely.
Understand. So you've been an early mover in the BOT, and I think the valuations that you are getting on the HAM is better in terms of time value of money from what you have got in the BOT projects. What are the learnings that you have incorporated? And along with that, if you could also talk about the competitive landscape because that is equally important?
Yes, competitive landscape would be there, but choosing the right project is very important. And NHAI is also modifying their concession agreements continuously, which is helping the sector. So they are in discussion even for this round of BOT projects, where they are asking concessioners to give their comfort on various aspects and then open for modifying the agreement if there are -- agreements are like equally -- as far as risk is concerned if they are equally placed, then definitely, this could be a good sector to grow.
Understand. So that -- and in terms of what's the learning that you had in the initial rounds that you've kind of taken a corrective action now that maybe the same one...
See, basically, study and selecting a proper corridor is very important, understanding all the aspects, having carried out BOT for the last 15, 20 years, we are very much in control on the entire value chain now.
Understand. Could you talk about the -- I mean, the kind of efforts that you're putting in terms of team sizes, the feet on ground in terms of handpicking the projects that you would want to build in terms of the traffic studies you've already done so that it kind of -- where you can leapfrog in terms of the larger size as it comes in?
Yes. So we have all the in-house teams, and quite a big number is available in-house to do this. We are not applying for taking help of any external consultants for it. So design-wise, traffic-wise or financial modeling wise, everything is in-house.
Next question is from the line of [ Shyam Garg ] from Ladderup.
Sir, my first question is pertaining to the CapEx. As we have mentioned in that we'll be spending around INR 60 crores to INR 100-odd crores for the next year in CapEx, what part would be for the maintenance CapEx and what part is growth CapEx?
See all this CapEx is for EPC business. So it is all for whatever contracts are received, we keep on spending on machinery and equipments.
Okay. And sir, my second question is pertaining to the railways project that we are taking, that is particularly for the redevelopment projects or what kind of projects are, that if you can put colors we are targeting in the near future?
So we are participating in highways, railways, power distribution, buildings and water. All these segments are focus for us. Whenever we are able to make our target margins, we are going to participate in that.
Next question is from the line of Vaibhav Shah from JM Financial Limited.
Sir, can you elaborate more on the INR 5 crore charge that you talked about in the interest cost? So which was the project? And what are the bank guarantees we encashed?
No, no, no. So this was a bank guarantee issued for Guyana project from Indian Bank guarantee, which was to be replaced by a bond structure, where the foreign bank, which was involved in the transaction was -- at the last moment refused to refund any bank guarantee charges they have taken for the next 2 years. So that had to be closed, and that's the reason we replaced the bank guarantee with a bond and the charges were debited, which, otherwise, would have been carried and amortized over the next 2 years' time.
[Operator Instructions] As there are no further questions, I would now like to hand the conference over to management for closing comments.
So I hope we have been able to answer most of your queries. We look forward to your participation in the next quarter. For any other further queries on this quarter results, you may contact SGA, our Investor Relations advisers, or us directly. Thank you very much.
Thank you. On behalf of Anand Rathi Share and Stock Brokers, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.