Dilip Buildcon Ltd
NSE:DBL
Dilip Buildcon Ltd
NSE:DBL
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Ladies and gentlemen, good morning, and welcome to the Q3 and 9 Months FY '25 Earnings Conference Call of Dilip Buildcon Limited hosted by S-Ancial Technologies Private Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Jill Chandrani from S-Ancial Technologies. Thank you, and over to you, ma'am.
Thank you, Adele. Good morning, everybody. Welcome to Bilbercon Q3 and 9 Months FY '25 Earnings Conference Call. From the management, we have with us today, Mr. Devendra Jain, Managing Director and CEO; Mr. Rohan Suryavanshi, Head, Strategy and Planning; and Mr. Sanjay Kumar Bansal, Chief Financial Officer. Before we proceed with the call, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interactions in this call may contain certain forward-looking statements concerning our business [Technical Difficulty]. Now I request the management to take us to the remarks after which we can open the floor for question-and-answer session.
Now I hand over the call to Mr. Devendra Jain, Chief Executive Officer for opening remarks.
Thank you, Jill. The results and presentation have been uploaded on the stock exchange and all of you had a chance to look at -- on behalf of the full level, I would like to welcome all our ore for the quarter 3 and 9-month FY '25 earnings conference call. Beginning with, let me share on the budget and sector has systemically for on infrastructure print of the entry and has created iterations of the in the near future. This commitment has also created the opportunity to the previous innovation. The capital expenditure allegations stands at increased [Technical Difficulty] growth in interest tier loans to state for infrastructure projects for capital expenditure. crores. Minister allocated to be INR 3 crores -- additionally and eventual of crore will be established to transform it into a while improving tradition and water infrastructure. To initiate this, the government has allocated INR 10,000 crores for FY '22. Significant interests have been placed on developing new projects. Overall, these initiatives will not just help the sector to grow, but it will also help in developing the country's infrastructure, and boost the economy. In FY '25, government classes 1,400 kilometers of national highways with National Highway Authority of India targeting 5,000 kilometers.
The government aims to award 12,900 kilometers of high grade projects in FY '25, which is a 50% increase over FY '24 altered by the national infrastructure pipeline and the enhanced union budget capital expenditure. The current government ads to introduce a new mega hit construction program 2047 division of PMM. The program will establish clear criteria for identifying roads of national importance and also bring changes to the model compensation agreement infrastructure development and minimize contract disputes and litigation. All these activities reflect the government's for risk on the sector and on the big there infrastructure.
During the quarter early review ordering activity has remained weak across all sectors, which has been the same case for this whole year. going we're expecting to be gaining a lot of order backlog across infrastructure verticals as these orders have been floated.
To discuss about our financial performance of the last quarter, our CFO, will then deeper and in the following remarks, but I would like to provide some context effectively. Just like for the industry for detail as well order inflows have remained muted in the past 12 to 15 months, resulting to a decline of 16% in top line on a Y-o-Y basis and 12% on a 9-month has compensated to the previous year. And expecting strong order inflows in the next few months, the execution will take time to accelerate to convert in numbers. Hence, we're expecting similar revenue run for the next year [Technical Difficulty]. We have all been impacted due to new economies of resulting in margin contraction as and when our scale of operations will improve margin profile will also improve accordingly.
Now shifting gears and talking a little bit about our portfolio of [Technical Difficulty] some discussed in the last quarter, we have fully concluded the [indiscernible] for the deal, we have extremely an entire consideration in terms of cash and invite units. We continue to receive cash distributions of INR 60 crores to INR 80 crores per annum from the NIT for our stake. In addition, we will also continue to do the O&M of their assets for the life duration of those assets. As I mentioned earlier as well, this provides us with long-term assured revenue stream. And this O&M revenue stream will keep on increasing as our own asset [Technical Difficulty].
On our own partnership with Alpha, we have progressed at profit now, we are toward in stakes in 7 matters out of a total deal of 18 assets. In these 7 assets, we have received COD and annuity has started. In the asset, constuctions completed and we have divested 25% stake and COD very soon. This concludes the fourth tranche of the Alpa deal. Balanced and assets are under construction as per the schedule and will be divested post receiving COD. Our anguish formation process is also progressing well. We have received JV approval for forming the public listed, and we are hopeful of concluding that in the first quarter of this coming year.
Now coming to our coal business. Our coal MD business accelerated execution part. I'm very happy to report that we've achieved production of 17.45 million metric tonnes in the 9-month of the year as compared to our target of 22 million for the full year -- mind even the $22 million was a higher target [Technical Difficulty] but as announced in the last call, we are on track to even that target by at least 10% to 15%, meaning we'll end up doing this year with almost about 25 million metric tonnes of coal per production.
Finally, coming on a vision of build 2.0, I'm happy to report that both are long-term revenue-based businesses, that is full revenue and our portfolios [Technical Difficulty], which is going to provide us with predictable cash flows and improve return ratios, with limited risks and downside. As I have indicated earlier as well, going forward, when you look at [Technical Difficulty] you would have to the consolidated numbers to get a better perspective. The temporary challenges around the stand-alone business, which has been -- which should be an industry-wide challenge because of order book by the government in the last 2 years. We expect that to also improve going forward with the government focusing very significantly on infrastructure and continuing to press that better even further. So you will see improvements happening at side as well and all the other numbers that we had talked about.
Now with this update, I would like to hand over the call to our CFO for the financial overview.
Good morning and welcome everyone to our earnings call. Let me present the standalone and consol results of Dilip Buildcon Limited for the quarter ended and 9 months ended December 31, 2024. Firstly, the standalone performance Y-o-Y, quarter 3 F '25 versus quarter 3, the revenue decreased by 16% in the quarter to INR 2,155 crores from INR 2,371 crores in process. EBITDA decreased by 24% in quarter 3 to INR 28 crores around INR 318 crores in quarter 3 FY '20, this is merely due to lower revenue in quarter 3 effect defense. Port after tax also decreased by 7.7% in quarter 2 total with INR 38 crores from INR 95 crores in quarter crores. SP62041657 On consol 9-month basis, 9 months FY '25 9-month FY -- the revenue of the company decreased in the 9 months FY '25 to INR 8,220 crores. around INR 8,646cin9-months FY '24. The IDA increased late in 9 months range. So INR 1,490 crores from in 9 months at after taxes increased by almost 18% in 9 months 2023. from 198 in FY '20 or the increase in it and in profit is mainly due to cement of our business income. Thank you all. And now we can open the floor for the questions and answers. Thank you.
[Operator Instructions] The first question comes from the line of Shravan Shah from Dolat Capital.
Thank you for question. Sir, first, I just wanted to understand in terms of the part [Technical Difficulty] and for us also, so are 2, 3 aspects to understand 1 is, how many value of projects that we have yet to be open. Second, how much are we planning to build it by March '25? And ultimately, so if I look at, we have received our 2 projects, 2,100-odd crores and you are looking at INR 16,000-odd crore in '25. So now how much are we looking at? And if it is on the lower side, so for FY '26, how 1 can look at in terms of the order inflow for us? So until now, we have the already sort of bid for about INR 20,000 crores catheter -- in terms of the 5,000 or that we're kind of looking at -- so that's 1 part of it second.
As you said, the total order book, INR 16,000 crores, though the last in months, the order info is less based on the already orders bidded and new openings. We think the is getting INR 16,000 crore from now until next financial year end.
From now to the end of March 26, we will be getting at least 5,000 to 6,000. So next 13 to 14 months, we will be regarding. We think that this is much lower. So even if we, let's say, we were looking at from INR 15,000 crores to INR 16,000 crores, so obviously, the kind of a similar number to be there or also -- so net in about 30,000 or INR 1,000 or 2,000 crores versus now we are saying just stone by March '26?
We had saying that on a getting a lot more orders than this minimal target will be to do this much. And this is native estimate only as you have seen a new trisector. So basically you're aware the ordering has been very muted. So we are on just with some of the external gains in the sector. So at thing -- to this much higher.
Okay. Because then the other question is obviously on the revenue front. So 12% on a stand-alone basis is lower in 19 months. So -- now we are looking for only INR 150 or, INR 100 crores -- so net revenue, let's say, to 16,000 since already, we have plus about 16,000 additions kind of INR 300 to INR 2,000 crores. And how come that on next year, how much then we can look at to actions.
So just to sort of create a number of forms, which are actually right now sitting in stability and the government orders have not opened up. I don't know how much will open up in the -- so that visit. Now next year, a nice day when we basically that as aside, there will be more relation to that, that will definitely kind of happen through that order book. Now the revenue in a revenue guidance next year to [Foreign Language] place when we started the year, it will be better or like somewhere in that number because we were expecting a large order book. As the year kept on progressing, we saw the government burden being muted, we kept on revising that even our revenue guidelines because we like to do are that were getting in. We're not getting sort of we will be in -- so we ran we should be doing a revenue of about INR 90,000 crores, which is INR 19,000 crores of next year. Next year, we are expecting similar kind of revenue. It's not due to have that we are very competent order -- and that is the year progress, we would modify the guidance that the government activity on a sugar footing. So right now, this is -- all these are estimated into the future. If last year or a year ago, a large company, we build this lack of ordering that happened in the year ago in Will that continue I would have definitely by stretch of the margination, but standing till the quarters have not happened. And what has seen to be delays, I am not on the right question to be able to answer that letter tell you that. But when it comes to our revenue, I can tell you to you, okay, there is excluding the INR 9,000 crores visibility that we have of our own revenue, given the orders that we have.
Now moving forward, as these orders will come in more, we'll do that. This lack of ordering has done has also impacted our debt reduction program and -- this year, we were -- I think we would have reduced from last year number, we would have reduced INR 50 crores or but now which is a change at that we did a combination of [Technical Difficulty] less order inflow, a combination of lower revenue and a combination of receivables getting stuck, these 3 things from JJM have resulted note that's not to that theme that we did. So we are right we released that reduced, I will come back to the same number as last financial year. This will be the case testing the AGM money from it government has -- is being released. So that money that will be we're expecting some [Technical Difficulty]. So the different factors will bringing back that. And the action that we delayed by -- like in term of what we were thinking that we will finish it in this year and the next financial year instead of that is now next after that, we will be completely doing that. And this is like our best plans have unfortunately not gone with the way that we expected because the external environment was not supporting us in the way that we had.
Just more clarity. Currently, we are in terms of the net debt having 7 core stand-alone -- so by March, we will be having the similar number of the December number? Or are we saying it will be similar to the March '24 number?
So the March '24 was INR 1 crore. Now as on today, December 2024 net debt [Technical Difficulty]. And we are saying the March '25 will be closed the number that we were there in FY '24 INR 1,500 crores around we will be having net debt.
Okay. [Technical Difficulty] that we were looking at that at 27%, that remains intact.
Yes. '25, '26 for the INR 500 crore reduction. So basically, the net on plan basically pushed by 9 months to 12 months. So what we used to do last year to next financial as my 2026, the debt will be around INR 1,000 crores in 1 lesser than INR 1,000 crores.
And then in FY '27, that will also be kind of -- we will be a mid-case kind of a company.
Yes.
Okay. And just -- so a more clarity here. This 15 from currently close to INR 600 crores, INR 700 crores kind of a reduction in this quarter itself.
So that is led by is led the collection of Jim receivable and don't some demand in cycling. So with this cash flow, we will sign at targeted net debt number.
Okay. And last for 2 things in terms of the margin front. So currently, 14% portion EBITDA margin. So versus we were looking at some 11% or 12%. So is there a possibility of further improvement in the first quarter and for the months from next year, can you be able to do this or tend to, that's the way 1 can look at?
So on maybe started the EBITDA has lower because, like I mentioned, there is your lower utilization of the fixed assets. The revenue that we had thought we will do that number is not happening. And because the company, our company more is always doing more on our own budget, so the decline or as revenue, there will always be a consequential decline in EBITDA, and that is what has led [indiscernible]. We are prepared to do much last year revenues than what we right now ending up to it. So as the revenue improves, the EBITDA will automatically improve, and we would have changed in the past as well and that is in projects volume. Now we think about how revenue stream on the EBITDA will be lower, that is right now -- as the order book, we will see that, and we'll give you better sort of in guidance on that. Now that's guidance something 10.5% that is happening. Product headed to kind of go forward with given -- like I said, the headwinds around in where our current order is and how much we will be able to execute.
Okay. Got it. Sir, I have no questions, we'll come back in to all the businesses. Okay. So for the CapEx that we have done was on a higher specific project where we have done a fessing piece of any specific projects, which has laid this isn how no 1 can get up in terms of the fourth quarter and maybe for even if we are doing at INR 9,000 crores kind of a revenue next year. So how 1 can look at from the CapEx?
Sure, whenever we speak CapEx, we speak net CapEx would be. So we said crore in this chart. So there are all [Technical Difficulty]. So basically, net basis, the guidance for next year is also similar INR 120 crores. This year also, the guidance that is in net numbers. So -- but we have basically purchased new equipments for the business.
And sir, in terms of now the 2, 3 aspects. So one is in that we will be [Technical Difficulty]. So I was saying that the in this quarter, we have sold some units -- so are we planning to sell more units.
Basically, as of now, we now plan -- but this is the case management only asset. But as of now, there is no plan.
Got it. And so in terms of time when we are doing a very good -- is that a way as a management, we are seeing 2, 3 aspects whether to go ahead for [Technical Difficulty] speaking of that subsidiary beyond or is there a way where it will be kind of giving the full financial numbers and which can help us to do to capture that value.
So both your questions, number one, you will have a plan to list this future separately. All those decisions made at the board level where we feel what is in the interest of our shareholders. And if a situation arises where we feel there is a significant value unlocking [Technical Difficulty] and thing that will happen in -- that's a different thing. I am at this position, there is no such plan, and I'm not in a position to be able to answer that. But at this time, I can tell you that there is no such plan. What we are doing in the bill politically as going effect. These things are always dynamic. And as the situation demand in future, we will take a call on that as a datapoints.
And the second part you asked about to give numbers separately. Right now, the way that the company has been giving you the numbers in terms of consolidated versus that is due. If there is any change in hope we present the numbers to our investors. Again, with [Technical Difficulty].
And the remaining can have that we will be divesting to the latent when this would be in terms of the completed -- in terms of [Technical Difficulty] will be entirely completed?
You can see the significant part in the quarter is basically from the exceptional gains, and it attracts only capital gain tax. So blended basis, it is 20%
Okay. Got it. Got it. And sir, do we have any tax related kind of -- so on what we report on a stand-alone P&L level. So this 9 months also, the tax number is on the lower side. So normal is around 25%, but we have a 20.7%. So is there any benefit or it is just mathematically way it is coming? So normally, one can look at only the 25% kind of a tax rate.
But now this -- in the fourth quarter, we will not be having any transfer because already just 1% is left in the last 8 assets. So whatever will be, it will be in the FY '26 that we will be transferring the assets, 7 assets. Shravanji, you rightly said this quarter will not have any further exceptional gains.
The next question comes from the line of Saket Kapoor from Kapoor Company.
If we look at the nature of our finance cost, I think so there will be a lot of elements that are clubbed under it. So if you could just give the breakup of on a consol level, INR 320 crores finance cost split between B long-term borrowing and working capital requirement and our cost of fund currently blended cost of...
Our blended cost of funds is around 10%. But basically, infra company has nonfund-based utilization also letter of credit and bank guarantees. So basically, the total cost in 9 months is around INR 367 crores. And we expected this to be lesser in this financial year, but because of the utilization of additional working capital due to the delays in receivables, the cost is -- the interest cost is not reduced. So it is INR 367 crores, including everything.
So I was looking at the consol number. Therein for this quarter, it was INR 320 crores number and 9 months number are INR 940 crores -- so in, basically, there are -- there is debt cost. And then we have some debt in coal subsidiary and balance debt in 11 under construction HAM asset. So it is addition of these items.
Okay. Sir, what was the closing date for DBL Infra? Last quarter, I think it was INR 650 crores, if I'm not wrong. So how have the debt moved there?
So INR 81 crores installment we paid in November. So it is -- so now it is INR 565 crores.
INR 565 -- and sir, closing balance for March '25 -- what should we anticipate in terms of the further reduction for the fourth quarter?
Another INR 80 crores. INR 485 crores.
Rohan, you have alluded to DBL 2.0 and I think so the net debt -- net cash company program was postponed by 1 year in your last call. So if you could just give some more understanding in your journey for DBL 2.0, what are the current headwinds that we are facing in terms of -- I think so the order intake part and slow -- and the tendering process being slower from the government is well understood now by the market. So what's the thought process, sir, currently? Is it the only elections being the only on the premise of which this is the state of affair for infrastructure as a whole for the country has happened? Or is there any shift in terms of the government focus going ahead?
Just to allude to the fact DBL is not the only concern which is having this problem, whether they are ancillary companies in infrastructure or court facing or even a big giant like L&T, everybody is sounding the same tool. And on the other hand, we hear from the government that they need -- they are pumping money and creating world-class infrastructure for its citizen.
Tax buoy on one hand also reflects the fact that there is a lot of traction in the economy, whether it is GST collection, whether it is direct tax collection. So where is this dilemma that the companies who have the infrastructure and created the workforce for creating the infrastureday not being able to be awarded to get the awards...
You've asked me a very tough question in terms of the government Karan because honestly, I can tell you what historical data tells and based on which we make our best assessments of how the future should or would look like. Historically, for the last 25 years, this was always a trend that the election year, the orders dry up. The government doesn't focus on giving out new orders and the focus is on completing ribbon cutting in, et cetera. So there is -- and that's a trend that has been very fairly established since the Watch era because that's when infrastructure building really took off in India. Before that, because it was not such a big thing, you could not really find very significant numbers. But since that time to now, we've seen that trend repeat over and over again. And that whether that happens at the state level or the central level, it's the same kind of trend that keeps on repeating. So when we stepped into last year and the election year, we realized that there would be those challenges. However, we did not expect that those challenges will continue even like post 9 months of the new government sort of also forming in. So that has -- because when we hit March or like even right now, we are almost there at 9 months, and this has happened.
Now why that has happened and what the government is thinking, I'm actually not in a position to say when a combination of factors or whether it's whatever their challenges are or whatever their focus is on, there have been different changes at the top in NHI, MIT. There have been -- while we were lucky to have the same minister continue, there are obviously different, different deals below have kept on changing and moving. But whatever is the thought in North Block I'm actually not best placed to answer that. But I can tell you what our vision was when we started -- when we spoke about DBL 2.0, which was born out of the -- I guess, the despair of COVID when things were looking very bleak across economies, across the country, across the sector. We had people stuck across the country.
So when we started analyzing the issues and the challenges that plague the sector, we made a list of things that we, as a company, need to be mindful of situations can change slowly and they can also change suddenly. Cold was a sudden change. slowly things that will happen is competition will catch up. There will be no orders and flows and there's so many different different things that will kind of happen. So as we looked at the sector, we saw how -- what are the things that we, as a company, need to kind of focus on, which will give us -- and when I say, I mean the shareholders, the best return and which will also create a company that will be as shockproof from most of these things. So you can't always mitigate all the challenges and risks that you will receive as a company. But you try and do the best possible job so that there is less volatility. So that's how it happened. So the things that we looked at was the warrant that was causing the stand-alone level, debt levels, we realized that while we had had a very CapEx-heavy model.
Going forward, we didn't want to kind of do that at the stand-alone level. We wanted to improve on the credit rating of the company. We wanted to improve on the capability. We wanted to make sure that we are spending less and less money in paying interest and putting more money at the parent level and putting creating more and more free cash. So that was the idea. that, number one, reducing debt; number two, focusing on building long-term revenue streams. That was a very, very important bit of it. And for that, we realized just a purely EPC business will not do that because our orders will only have a visibility of 2 to 4 years of any kind of EPC order. And that will never give you that long-term sort of predictability of cash flow that you want. So that's where both the coal business and the InvIT business and looking to partner with Alpha sort of came to our mind that we will want to continue this and continue to have cash flows.
The long-term goal is to keep building our long-term cash flows and eventually come to a place and position where long-term cash flows and profitability is more than 50%, more than 60%, more than 70%, keep on increasing that pie. So while we continue to do our EPC business with our current asset base, with small sort of improvement CapEx happening every year, like we mentioned the CapEx earlier, DB used to do INR 400 crores, INR 500 crores plus of CapEx every year. Now we only do INR 100 crores and around that number. So our focus is to only do replacement CapEx for the next few years, keep doing the max that we can juice out from our assets, keep building the -- keep reducing the debt, keep building the free cash flow, keep building the consolidated business at the site and keep improving the return ratio.
So our ROE, ROCE, those are the things that we are kind of focusing on as a company. And that you will keep seeing initially, like I said, you will keep seeing that improvement first happening in our consolidated P&L because a lot of -- like the coal is an SPV, separate SPV, profit gets captured there, some captured gets captured at DBL level.
Similarly, when you do the InvIT things and some of the assets that are housed outside, so they will be getting captured. So all of these different, different things will -- the money that will keep getting thrown into the company will be getting captured on a consolidated basis. The only thing right now that we have as a company struggled with, like you mentioned, everyone in the sector has struggled with is order inflow. And because order inflows have been weak, the stand-alone numbers have not been to our expectations. But as and when this wrong gets wrighted, we are very sure that we will accelerate on that path that we spoke.
Since we are already 2/3 into the quarter, I think 45 days into 5. So is the same line of thought in terms of ending and all continued for us? There is still lack of order inflow for the 45 days. And how is the execution cycle shaping up for this quarter, sir? If you could give some understanding on the stand-alone part, how will this quarter shape up?
So when it comes to ordering inflow, it is anyone's guess how much more the government will sort of release by the end of this financial year. We are hopeful that more and more orders open up. But we can't say for sure when will they finally sort of open those tenders. Like I mentioned earlier as well, we have already bid for about INR 20,000-plus crores of orders that we're awaiting opening. So let's see when those open. There are others that we're also bidding for. So again, not in a position to tell you that. Though I can definitely tell you the coming quarter, the numbers that we have done in this quarter, those are the kind of similar numbers we will be doing in quarter 4 as well that we're kind of expecting that run rate because that is the kind of order book that we have in hand right now. So that I can tell you that will be in that kind of range.
And the consol will look slightly better since the execution for the MDO contribution would be higher for this quarter or at similar levels?
It will be at similar level because that pace of MDO has already taken up, yes.
Right. Sir, secondly, sir, Mr. Rohan Sansi and all are related to the promoters or they are only professionals for the organization? As his profile, he is for the planning and the with the government part. So I thought would have more color on what -- I think that is a different forum to discuss that.
Point, specific question is there, sir. When we look at building the organization and other part, what other efficiencies can be built in that we can also declare our results earlier than at the...
Sorry to. If you have any further questions, please reach out the management. Please have this as your last question, and then you can...
Last question only, sir. We, as investors would like to understand since the organization is large, we are putting into the right steps to build a new organization 2.0. Why are the results are always at the end? -- why at 14, 13 of the ensuing quarters, we get to know about the numbers. Why not as the size of the business is good, we have the systems in place, why are not the reporting happening within 25, 30 days of the ensuing quarter? Why at the end...
The results are always taken and presented on the Board members and a lot of other factors that come in. Also, bear in mind that our is not a tech company, like when you see all the sector sector-wide, the numbers, how they are reported, we will also be reporting in a similar kind of time line. There may be someday maybe sometime we may be earlier, sometimes someone else may be later. But if you look at the general trend, we are at the same level as everyone in the sector. I can't compare with any other sector. When we're comparing apples, you have to compare with apples, not with oranges. So it will be in the similar line as we are, even though we have all the SAP and all the systems there.
The next question comes from the line of Shravan Shah from Dolat Capital.
Sir, just to clarify, sir, you mentioned that the DBL Infra date is reduced by INR 81-odd crores and is around INR 55 crores. And then further INR 80-odd crores kind of a reduction in the fourth quarter?
And second, sir, in terms of the current INR 16,600 crore order book, how much of the value where we have still not received the appointed date?
So total, there are 2 projects. One is Topurgart, another one TopurgartAM project and another is Juaribservility Tower. There are 2 projects where appointed date is...
Okay. Got it. And sir, in terms of the inventory level, obviously, that's the main thing we are also trying to reduce. So -- but it is still not happening to the way it should be, though our revenue is on the lower side, the absolute or maybe in the days terms also, it looks similar. So is there a thing that we are planning to maybe not have some part of the inventory, which maybe because now we are not having a kind of a growth that needs such inventory even for next year also when we are seeing the similar kind of a number, then why not to release some working capital from the inventory...
It is our endeavor like we mentioned earlier as well to -- while we're focusing on all different areas of the company to keep reducing this as well as our model keeps shifting. But given that we still have all our equipment, which is doing all the job in-house, and there is a significant life there. So the model will not change overnight. But there are changes that we are making and those changes will show gradually the thing that will happen. In terms of working capital days, where we are at was very similar to where the industry is at. So this model that we had done was not only done for growth when it came to sort of doing things in-house. It was also a factor of taking complete ownership of a project, completing it within time lines and building strength in-house rather than relying on someone else. So it wasn't just this model had not been borne out of a -- for a hunger or thrust for growth that we were doing that. In that case, actually, we would have relied on partners to do it. It was actually based on necessity where at that time, the ecosystem was not supportive enough to be able to provide all that we needed to do. So which is why we had to take these matters within our own hands. But rest assured, it is one of the key things that we as a company are also looking at. As we look at improving our return ratios, this will also kind of -- is a part of how we will do that. And it's a journey. So bear with us on that, but it's a journey, and it will take that time. And you will see improvements happening on it along the way.
Okay. And sir, this InvIT when we will be listing, so it will have all the alpha alternative 18-odd assets. So whatever initially will be the -- where we have achieved the PCOD that will get listed. And as and when the other assets achieve the PCOD, it will be part of that InvIT. That's the way or entirely the 18 together will initially get -- will be part of the InvIT and get listed?
So Shravanji, you are right. First, the completed asset where we have already transferred 26% will go in InvIT. And second part, on a progressive basis, the other assets will also basically go into InvIT. But at the same time in previous calls also, this InvIT is set up for our DBL assets and the InvIT will basically the assets from market also. So from market also, there will be a few assets in the InvIT.
The next question comes from the line of Pranav Furia from Antique Stock Broking.
I just wanted to understand, sir, is there any vertical specifically that you can target so that the time lines between an L1 and the actual execution is lower and can help you with FY '26 revenues itself...
Sir, there is no new vertical that we are particularly looking at chasing that will kind of do that. There are already 8, 9 verticals and the company is operating in each vertical has its own pros and cons. The idea for the company, whenever we've gone into a vertical has been that we try and utilize our equipment bank in all those areas, where our manpower skills, our equipment bank experience of working in the state and with the agencies is also comes to help and support that. So that is how we kind of go into it. There is no specific agenda and plan that were building from the -- winning to execution pace kind of will be the deciding factor for us to choose the sector. Because those things are out of our control totally, in large infrastructure projects, there are a lot of government agencies involved. There are land acquisition challenges. There are multiple sort of things that you look at. So that is never the decision-making criteria for us as a company.
Got it, sir. Sir, could you just highlight 1 or 2 sectors from the current order book, which have the lowest time gap between L1 and execution historically?
It all depends on project to project. Like I said, there can be times where you could have started even a road project where there was great clearance, no I'll give you that the company has done a road project has been -- so it was a 2-year project, which was completed in 6 months. And we won a lot of early completion bonus in that. So there you can't say -- so now imagine from the date of appointment to finishing a project in the next 6 months, versus -- so it was done in 1/4 of the time because everything was clear, given and you could do that kind of execution. So it all depends on multiple factors. It would be misleading to give you this is what would be the best.
Next question comes from the line of Sanjay from Sohu Asset Managers Private Limited.
In coal, subsidiary, we've done very well. So is the scope for further contracts? Or I mean, we are at a $25 million run rate which is commendable and our target is to go to EUR 50 million. So the question I have is, are we -- can we get more contracts on this? And secondly, are we on a run rate of $50 million plan that we have?
Sanjay, we are very actively looking at this sector. It's a sector that we have been there in for the last 7, 8 years. and we have expanded and significantly ramped up our presence in it. So we are constantly looking for coal projects, both domestically and internationally, to kind of supporting -- it's a sector that we now understood pretty well and you will do that. Now in terms of run rate, the plan for both the MDOs ramping up, see 1 there is Pacharia then there is term -- but are are already doing at peak capacity. In CRM, every year, we have to keep increasing the capacity over the next 3 years that is happening. That is a thing at an accelerated pace. And we will continue to sort of increase the coal sort of output every year.
In CRM, already the peak requirement is 50 million tonnes. So this year, we are ending at 18 million tonnes next year, '25 and so on in FY '28, the peak debt capacity, 50 million tonnes will be achieved?
So with these 2 MDUs, we are already at 37%, and we are looking for new projects as well.
Sure. Secondly, our target of final NIT value of our share of INR 4,000 crores in 2.5 years, are we on track on that? Sir, the number as given in the previous call, is there. However, there will be final valuation is underway once the InVIT document is filed. -- but we are having the similar kind of number.
Yes. So it could be INR 0 crores, INR 300 crores here or there. But broadly, the price-to-book multiples that we've agreed upon, broadly we should take us through a final equity value of INR 3,700 crores to INR 4,000 crores.
[Foreign Language]
And basic in that of 26%, you transfer in these other assets and 74 when it becomes a public invite also you transfer in that? Is that the way I'm just not clear on that.
The balance 74 million basically, the deal with Alpha basically, we will sell 26% into buckets, asset first intent assets. And Alpha will transfer the 26%, and we will transfer about 24% in the InvIT.
Got it. Perfect. And the last one, I mean, you did discuss on order inflows not happening -- and of course, a bit of it is government related. So because or is a high fixed cost of our own equipment, our own manpower, which works in a cycle which is really ruling because your efficiency and margins can get better. But if you were to go asset-light and people light over a period because we are cyclical in order inflows, the industry is in a cyclical way. So can we do it or it is difficult to change over a period of time, not 1 year, but 3 to 5 years, is it possible or no?
[Foreign Language]
Sure. And the last one, while, of course, all of us are disappointed with the government coming back on order book, -- but do you think Jan onwards? Because on a -- we do see now numbers coming up in terms of because they also have to spend as per the budget. And for them to revive also, they have to give orders. But you are on the ground, so at state and center, do you think 6 months ahead, things will be really good? Or you think it will be still a little slow and steady because that's important timing, if you can guide us there.
[Foreign Language]
Okay. One last one, [Foreign Language] of course, state-wise because other than roads, NHA and [Foreign Language]. So do you think AR things have got stuck and will take time? Or you think that also you are seeing state-wise things getting better?
[Foreign Language]
The next question comes from the line of Bhavan from Anand Rathi.
Yes. So just wanted to understand, so I think the money we sued for divesting 25% stake? Sir, what type isn't able to hear you up as an. Yes. So just wanted to understand what is the proceeds we received by divesting 25% stake. I just wanted to understand what is the proceeds that we received on divesting 25% stake in 1 of our hand projects?
8 assets, we received the total INR 457 crore money.
Okay, got it. And sir, just wanted to understand, sir, how is the -- I understand you briefly mentioned, but just wanted to understand how are you going to transfer the asset to the IT like. Are you going to transfer entire 74% or we will retain some part of the SPVs even after the visa.
100% will be transferred to invit26% Alpha is Aspers, 74% we will transfer. So there will be no -- Alfa DBL will have some equity out of those assets.
Okay. And just 1 more point. From the balance sheet perspective, so once these assets are transferred, it 74% stake is console.
So then be accounted as a subsidiary or will be accounted as a fair value investment to P&L -- fair value of the invent units. That's 1 point.
Ladies and gentlemen, the next question comes from Vignesh from Sequent Investments.
So my first question is on the coal part of the business, right? So I was checking our H1 numbers, it was around 10 million tonnes which has now increased to 17.5 million tonnes, which is -- I mean, a huge increase, if I have to see I understand there is seasonality in the business, but can I understand what part of sales and EBITDA for quarter 3 FY '25 accounts from pool?
We don't give out vertical-wise EBITDA. We'll give a mix blended number only.
Okay, sir. Sir, also coming to the interest part of it. I heard you earlier when you said that -- there was some increase in working capital primarily due to receivables. So sir, I was going through the last year's annual report, and I see there are under the aging schedule, there are certain receivables, which are more than 3 years, which accounts to around INR 1,950 crores -- so -- and since then, I mean, from quarter 1, quarter 2, we have consistently seen increase in our interest outlay at a consolidated level -- can I understand how the aging schedule has panned out in the last 9 months? And what kind of numbers can we look forward to in an FY '25 annual report?
So Dignity on a 1:1 basis, we will discuss these numbers. But however, if there are old debtors and not receivable, we have made sufficient provisions as per the provision metrics.
Ladies and gentlemen, that brings us to the end of the question-and-answer session. I would now like to hand the conference over to Mr. Rohan Suryavanshi for the closing comments.
On behalf of the whole DBL team, I'd like to thank all the participants who came today and asked questions. In case, we were not able to answer your questions, please feel to reach out to our team at S-Ancial or our team at DBL, and we will be very happy to answer any more questions that you guys have. Thank you. And I wish you guys a great year ahead.
Thank you, sir. Ladies and gentlemen, on behalf of Dell Limited, that concludes this conference. You may now disconnect your lines.