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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, good day, and welcome to the H.G. Infra Engineering Limited Q4 FY '23 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to [ Ms. Anandapur ] from Go India Advisors. Thank you. And over to you, ma'am.
Thank you. Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited Earnings Call to discuss the Q4 and FY '23 results. We have on the call Mr. Harendra Singh, Chairman and Managing Director, Mr. Arvind Khandelwal, President, Strategy; and Mr. Rajeev Mishra, Chief Financial Officer.
We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risk that the company faces.
I now request Mr. Harendra Singh to take us through the company's business outlook and performance subsequent to which we will open the floor for Q&A time, and over to you, sir. .
Thank you, Sanna. Good afternoon, ladies and gentlemen. Welcome, everyone, to the Q4 and FY '20 earnings call. I hope you all is well and have got the chance to view the investors presentation and the results that were uploaded on the exchanges.
I'm pleased to announce that the grace of God this year has been phenomenal for us price on diversification of our order book by securing 3 nongrowth projects this year, followed by a successful entering into a share purchase agreement for monetizing of our 4 projects, which would further strengthen our balance sheet. Furthermore, we have strengthened our position in the highway and road sector with 2 successful AM projects in Q4 FY '23.
The company has established outstanding performance in FY '23 across all areas. Let me start with the yearly financial performance of the company. In FY '23, the standalone overall revenue was INR 4,419 crores, which increased by 22.2% Y-o-Y from INR 3,614 crores in FY '22. The EBITDA for FY '23 was INR 710 crores, showing a year-on-year growth of 21.5%, with an EBITDA margin of 15.1%. The PAT margins for FY '23 was 9.5%, and the profit after tax for the period FY '23 is INR 22 crores, which is an increase of INR 39 crores FY '22.
Before I move on to the operational detailed financial numbers of the company, let me share a few updates on the infrastructure sector to establish the business opportunities in the years to come. Talking of roles, the central government intends to accelerate the construction of roads in FY '24 with the awarding of new projects of 12,000 to 12,500 odd kilometers this year. Along with focus on the project completion ahead of general action is expected to boost execution in FY '24. More targets to build 45 kilometers of roadways in the year of FY '24. This implies construction of around 16,000 kilometers of road in a year, which will be on the core. Most plans to initiate the second phase of [ Barangaroo ]. And railways, again, the capital expenditure in the railway sector has been consistently increasing over the past 4 years and is expected to reach a projected amount of INR 2.5 lakh in FY '23.
The government is aiming to upgrade the redevelopment of 275-odd stations privately mode under the scheme. The government has allocated a budget of INR 98,000 crores for monetization and expansion of airports over the next 5 years. Of this, INR 60,000 crores will be used to announce the existing airport while INR 3,000 crore has been set aside for the development of new greenfield labels. The world's fastest-growing aviation market teams to boost the number of airports to 220 by 2025 from the current 148. It will involve greenfield projects, new terminals and makeover of the existing airports.
The water again where the huge mission is quite impressive. With increased budgetary allocation, the priority has the patented by the government of India to provide safe water to the rural households We, as a company, see abundant business opportunities to client and look forward to get some more projects in front 2.
Now I would like to share the official updates on order book project execution and other significant events. As of FY '23, our order book has reached INR 12,595 crores. There is a bit convention in the investor presentation. We have corrected there are 2 projects which are having the GFC. So it is INR 12,595 crores, with an order inflow of fees INR 8,750 crores during the year. We have established our footprint in 11-state with the EPC segment accounting for 45% and the AM segment accounting for 45%. We would further like to grow our order book in this financial year, majorly from growth and ices segment, but we would like to further expand our presence in other sectors too, including water, railways and other opportunities.
During the year, we have secured 3 land projects and 3 nonroad projects, which I would like to mention, apart from the dangerous of Canal. Canal, Ringwood project, there is a high project in the state of Arana was INR 997 crores. 2 land projects in what I see Rai Katana Highway that impact 10 in the state of [ Carson ] was INR 925 crores and INR 1,303 crores, respectively. Daily DMRC EPC project valued at INR 412 crores at EPC. Our regional new rail or line project in Bilaspur [indiscernible]. That is INR 466 crores. That is again in GFC North Central Railway has awarded a new project of Banco registration in the sale of Pradesh. That is INR 655 crores. That in on GP.
I will now touch upon the progress of ongoing projects. So of EPC projects with regards to Bagassi we have agitated the project. The rebar expansion road project in Delhi, execution is around 53%. With a minus 22 projects that is EPC and HI, the execution stood at 8.4%. The execution progress of a material project is at 94.4%, where we have already received the PCOD in the month of December. Package 9 execution over to at 97.4%. We have already applied for COD already recently. And projects where the execution state [indiscernible] 5 and 6 are at 33.4% and 38.3%, respectively. They are moving quite well for the schedule. The execution status of [indiscernible] is 38.8%. The execution sets of [ Harmonic Varanus ], 6% and 15%, respectively. The Rewari Pena project is core is already 94% completion. We already applied the PCOD. We have received some in completion certificate during the year was we received the completion that depicted for the NHA D-package 8; De Package 4; [indiscernible] project; Atmira projects; and 2 small projects, namely the Kuranda and Ravi Kingston.
I just want to go to significant milestone, which we just reached. That is monetization of 4 projects. Those last few months, we were continuously under discussion with the investors to monetize our initial 4 land projects. That is unanticipated by [indiscernible]. So it's a pleasure to inform you that finally, we have signed share purchase agreement with IV Infratil Trust, which is supported in the first week of May only, where NGs will be selling 100% stake in all the 4 wholly subsidiaries.
The enterprise value for the production is INR 1,394 crores, having an equity value of INR 31 crores. The valuation of the deal is around 1.5x to book, which is higher than is 1.3 to 1.4 expected and guided by the management earlier. Equity and debt commitment for all are INR 343 crores and INR 96 crores, respectively. While that projection will be completed in 2 transit, worst times will be -- you see initial hampered, where we already achieved the completion. And two, it will be included -- that is included include more by park projects for which final completion approval is expected by September.
Completion of the sale of the location of cost tiers, which will happen after the satisfaction of the condition precedent, set up in the share purchase agreement, which includes authority, third-party and other regulatory approvals and certain contractual commitments. We believe this deal at a strong valuation will be going to strengthen the balance sheet of the company and will help the company to release capital for future growth. Diversification of order book along with monetization of and projects can give more positive figures for the company in the future.
Now I'd like to invite Rajeev Mishra, our CFO, to highlight the quarter and last year's financial performance of the company.
Thank you, sir. Let me give you the key updates on the financials. In FY '23, the stand-alone overall revenue was INR 4,419 crores, which increased by 22.2% year-on-year growth from INR 3,515 crore in FY '22. At control level, revenue was INR 4,622 crores as compared to INR 3,751 in FY '22 with year growth of 23.2%. At federal level, EBITDA for FY '23 was INR 10 crores, with Y-o-Y because of 21.5% against -- and EBITDA was in INR 800 crores versus year growth of 26.1%. The FX margins for FY '23, that stand-alone level was 9.5% and the price for the period FY '20 was INR 421 crores. We have reached 33 crores in FY '22. At consol level, the pack was INR 493 crores versus INR 380 crores in FY '22 with Y-o-Y growth of 2.8%.
On a stand-alone basis, the gross debt of the company was INR 504 crores, which included working capital to roll and current authorities and the trade limits of INR 368 crores and NCE of INR 97 crores. At the consol level, the gross debt was INR 197 crores, which included a project debt of INR 1,403 crores. The company continues to remain unmet order book ratio of 2.9x.
For all the 2 home projects, the total equity reverent anticipated in FY '26 stood at INR 1,612 crores. Out of this, an investment of INR 76 crores has been done as of March 23. And a projection of investing for the project of INR 440 crores, which is anticipated in this remain financial year FY '24.
Coming to the quarterly financial performance. On a stand-alone basis, in quarter 4, the company achieved a stand-alone top line of INR 1,470 crores vis-a-vis INR 1,026 crores. In terms of the EBITDA, the company achieved INR 238 crores with an EBITDA margin of 16.2% for the third quarter. The profit before tax for Q2 FY '23 amounted to INR 200 crores, representing growth of 6.8% Y-o-Y. The PAT also rose to INR 140 crores, indicating a Y-o-Y growth of 2.1%. On the consol basis, the company has achieved a revenue of INR 1,535 crores compared to Q4 of last year.
Regarding the data, the company recorded INR 297 crores with EBITDA margin of 19.3%. Furthermore, the profit before tax for Q4 FY '23 is 231. And PAT outspent increase of INR 17 crores filter, electing a growth of 4.4%. We are happy to share that the company's performance over the last 5 years has been exceptionally good. with a 5-year CAGR for revenue of 26%, [indiscernible] at 28% and at 30%. The ROC NRE increased to 30% and 24% respectively. The company has worked dedicated to reach the net working capital cycle to 23 days in FY '23 as compared to 46 days in FY '19.
I would like to hand over the call to Mr. Harendra for further future guidance and the business opportunities.
Thank you, Rajeev. Let me lighten the corn for the week ahead. has laid the groundwork for expansion faced by [indiscernible] that are linked in operational efficiency and effectiveness, cost optimization and timely project execution, the company anticipates securing orders worth INR 8,000 to INR 9,000 crores in FY 2024 to maintain the book-to-bill ratio of more than 2.5x. Furthermore, there is a strong NHA bid of around 1 lakh, INR 10,000 crores, which is in pipeline this year.
The other sectors, the new projects in railways, we can expect the INR 15,000 crores. So we believe we already target for in that show. And they are all yet to be delayed, which gives us a huge opportunity to scale our business and order book. We continue to stress the significance of diversification and as evidenced by our recent order wins for 3 nonroad projects. We aim to have 20% to 25% of our order book comprising all or project in the next 2, 3 years.
The floor is now open for question and answer. Thank you.
[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities. .
Congratulations on consistent performance and a very, very strong backer. Sir, my question is, sir, on the guidance for FY '24. Can you please provide us what you expect the revenue in the margin for FY '24 and the order inflow?
We have just touched upon, but we are expecting about INR 800 crores to INR 900 crores of order, which, again, you can just break it out. The INR 5,000-odd crores of HAM projects, we continually will be targeting to look upon this year. INR 150 of EPC projects from other and the tile project. And of about, say, INR 2,000 odd crores likely to -- we are targeting for this other than one sector.
As far as the leadership is concerned, I can go into the breakup of the total orders in hand. We are already seeing the orders of 5 HAM most projects at INR 800 crores of order, of which we are expecting to execute INR 1,800 crores during the year. The NHA EPC project that is majorly 2, 1 is the project contract; second, nonaged budgets, where we expect that during the year, we would be doing INR 850-odd crores of execution. And Tanate projects around, we are expecting some INR 2,000 crores of execution. We are at around INR 3,900-odd crores of India. And this INR 400 crores of execution, we are expecting from 3 of the non-hired budgets or the orchestration project like that. And under onto execution is negatively from the small meters. So taking together, it's coming out, it's about 20% to 22% year-on-year, rather 23%.
Second question is on the monetization. If I remember correctly, I think you are getting INR 5.3 -- INR 550 crore for investment of around INR 300-odd crores. Is the number right?
It's INR 343 crores to be very specific.
Okay. Understood. Sir, for the trending of road for the FY '23, I think was price on the lower side or like the HAM proportion as muchhigher. You did mention that INR 1.1 billion order is in the pipeline. Is this tender as of now, tender getting a sense of being and it this number to increase as we come -- and proportion in the sideline.?
So what you are talking -- I think you were talking about the big pipeline of NHA.
Yes, yes.
Has been indicated as already been given us the guidance for NHA and ministry that they are all looking for working with much of size of orders, almost about INR 4,000 to INR 5,000 kilometers from NHA and balances on board.
And my question was on the number looks to be slightly lower for the industry.
[indiscernible]
No, my question was the onto one clear number. Is it prior lower size to 1.5 million?
Actually, we have activated at is what we will be aiming upon to. We are not considering those projects for where we actually geographically. We would not be interested. For last year, we bidded for almost INR 2,000 crores of order is from NHA. So this year, we are looking at about INR 11,000 crores to be paid for all NHA execution.
[Operator Instructions] The next question is from the line of Parikshit Kandpal HDFC Securities.
Congratulations. [indiscernible]
Mr. Kandpal, your audio is muffled from your line. Please use the handset mode.
Hello. Is it better now?
Yes, yes.
Congratulations on the monetization of the HAM assets and an exceptional year in terms of execution. So my first question is on the diversification. So we got 3 projects this year on the railways and metro. So did we bid for any water project? Because a lot of our competitors have got water projects, and we have been planning -- strategizing to bid for water projects. If you can just tell us how much was the bid we pushed in the water segment in FY '23 and what are the plans for FY '24.
Thank you very much for your vision portion. And this year, we did it for a project of that water [indiscernible] that are in the state of MP. But definitely, we could not do any of the projects because our estimation, which we actually have calculated, we sold amount held 2 to 5 range. So there, it's not bad, but we are not pursuing this particular opportunity. This is a huge potential in this particular nearby states like NP and even UP and Rajasthan. In Alison, of course, there were many bidding. Say bids were about to be it or awarded. I think very recently, it has been deterred the will be at a in the subsequent part of this financial year on a post election. So we are keeping a very watch on this opportunity, and we will be doing so.
Okay. The second question is on the HAM portfolio in terms of out of 12 the balance assets. Do you have any kind of understanding picture, whether they'll have a ROFO on our assets or we'll retain the option of storing it out with other partners as well. So how has the strategy been working out there in terms of future monetization in the portfolio?
See, the understanding has been really serious. Ultimately, it had to be a good association from any of your parts. They are having the backup of their fund management, and we are having the fact of our DNA EPC. So this is our understanding where we are actually looking beyond that in performance the bond that we -- whatever we continue to develop or construct. We would be looking at -- but definitely, it all depends upon the typical division factors, which really matter, where the valuation is also there. But we believe that the strong relationship which is going to be a continuing future.
And do we still to extend this relationship beyond road side in PVC power sector in presentation?
Very recently, it has been concluded for a highway, but they have shown the interest in the company that we can look and look beyond even wherever you would be interested in other sectors. Other than the private sector, even I cannot comment right now.
Okay. And just the last question to Rajeev is if you can give break up of also the 12-hectare investors already run balance at project. What is the total investment in it? What is the balance requirement over the next -- until FY '20, if you can give us.
As the total requirement of all these equity was INR 1,620 out of which we invested -- sorry, INR 735, we have invested in until March. And our projects, almost INR 440 we have to invest in FY '24. And for the remaining, we have already considered the positions of INR 200, INR 359 crores, which is required in FY '25 for the revising projects, which are all the execution in projects.
Sir, you said INR 440 crores in FY '24 and in FY '25?
That is required.
Okay. INR 359 for FY '24 and balance in FY '26, right?
INR 76 odd crores.
INR 76-odd crores. Okay, sir. All the best. And again, congratulations on the great deal, which you have closed.
[Operator Instructions] Next question is from the line of Jiten Rushi from Axis Capital.
Sir, my question is on the project of this come on arable package 1 and 2 this quarter in Q4. We haven't seen any execution. And also the mobile also for a significant acquisition. So any reason what is happening on these projects?
Sure. I think in -- you're talking about on the obliterate -- the execution in quarter 4 of this particular is around INR 21 crore and INR 48 crore, respectively, in 1 and 2. This is, again, because in this project, there has been quite a big variation, which is actually an in-contract because of Kanan elevation department. They are poor. So almost 50% of the land has affected. Because of that, there are certain approval is likely to come from NHA, whether they are going for this variation or not. So this is why I think the execution has been at a slower pace, but I don't believe that it is going to have effect for much over time. There's going to be resolved very soon, and we will be taking back to the normal trend of test management, which we will be looking at. INR 2 crore also, there has been a small variation, which is likely to be there because it is in 2 phases for service on being constructed for the first phase, and the second phase 8 months is the main category to be constructed. So the service for an manager, they are looking at the combination where whatever we complete in the service can be finally because it's clearly certain there's an approval, which is likely to come from NHA.
One and 2, you said that the variation approval will come from, but could be on the higher side.
There are 2 kind of edition. One is the usage of ones in this particular way anti-PC has already been caught. We call the bids invited the tenders for transposition of [indiscernible]. Also being that we have bid for material projects. But for sure, I think all the variations are on positive.
When can we expect us to the vision to pick up in the...
It's not that reason is not going on at all. It still everything is going on, moving off well on the -- as per the milestone, we will be achieving that.
INR 21 crore and the revenue..
Total bill revenue we've been during the year because we didn't -- it's all built revenue.
Even this should start positively as you said, the variation will be.
Yes, yes,
Okay. Okay. And sir, on EBITDA and the gross margin, we have seen significant improvement. So any reason for this improvement this quarter because of size?
Very -- it's a normal trend. It's not that anything which is actually added into this margin. It's a very small center you can see the range of where employee cost and the cost of model being used. So the OPM has increased, the EBITDA has shown the improvement that in...
So the margin guidance, the income price.. What the EBITDA margin guidance for next couple of years?
Significantly, as we expect out of these projects, which we already started signing and we would be starting execution roughly been around the range of 15%.
15%. So going forward, we can see some decline in margin because of the mix change in mix.
Decline, no. It's 15%
15% From a CapEx front, you have done a significant CapEx this year. We can highlight almost hostesses almost INR 2,000 crores, right? So any take view on going forward.
Yes, this year, I think you can see the increase in the term loan because of that only, the subsection of INR 224 crore term loan being added during the year. The margin balance is INR 33 crores of downloads. There is hardly any increase in the [indiscernible] et cetera. Has been increased because we have added to INR 299 crores of gross block, which is a majority of that portion is the construction equipment, which we added. The phasing out of the old construction equipment, where there already there is some life, which we have considered as for -- and the second was the upgradation of all these segments has been done strategically. So the year on now just looking to the subsequent year, we would be happy enough that order any of the ordering resolution of 20% growth for the company. It should be somewhere around INR 100-odd crores will be added for next 3 years. .
[Operator Instructions] The next question is from the line of Shravan Shah from Dolat Capita.
Congratulations on performance and on the monetization number and project. Sir, broader questions have been answered. A couple of things just to understand, first, please, on the -- have we beat any of the projects where it is to be open?
Yes, we are -- the results are yet to be open. There are 2 projects of [indiscernible]; and one more of NHA project; one more for most projects; and 3 projects of railways, which are yet to be open. .
So this fixed project, is what how much and the railway projects?
Altogether, it's about INR 8,000 crores, all amenities are a small amount of INR 300 crores to INR 500 crores. So total.
Okay, okay. Got it. Second is on the recently won projects and projects and came to Central band on a bias in terms of the content, what is the expected deadline?
RVNL for the last project, we have already have assigned the holiday of 31st of May, the letter for the 31st of May is a model we are signing the agreement, and this is one think for contrition of course. So I think that is going to be a not more at 23 months because it will take all possible commissions from the authority, where is majorly utility electrical.
Okay. So maybe by July, August, we will get the on trade for come to the central administration.
Probably as of now. .
Sorry?
Yes, I don't know anything like that only almost.
And then for land projects, [indiscernible]?
[indiscernible] and availability as of now is around 90%. And the cap, which was solar, now being harvested the repo. We are taking the position of the land. As soon as we complete the land position by June end, we believe that ended by June and on July, we would be taking the project by that time.
And for what is an in 13 of October, November or December?
Of course, I think the post monsoon. Only in any case because the land compensation is being the feed owners. And we believe that it is significantly going to improve once the harvesting has already been done. By October, November, we did that are likely here with the sort where complicated like we declared.
Okay. Just a couple of data points in terms of the retention money, mobilization advance and unbilled revenue as on March?
Unbilled revenue, which is your last point, which has been increased for this financial year because next developments have been there. The relation is market approved if you are talking about the unbilled revenue, which will now see something to be very specific. So this is how a INR 150-odd is a HAM only.
Okay.
170-odd coil, which is until in ER and [indiscernible], an early project also other changes there. We have a INR 170-odd until is there. But now there is a variation being passed. We have the construction, which was at a different stage. Now they are relaxed the payment at not at every 2 meters relate payments that is how I think within this quarter only. We would be getting significant decrease in the unbilled because they will be paying us right on the -- not at that stage prior to that.
Sorry, sir, just to clarify, unbilled revenue total is INR 610 crores return on money. How much mobilization advance?
INR 580 crores to be very tip. And out of INR 580 crores, given that the HAM project, it's INR 130 crores. NHA Project is INR 150 crores. One major amount is there like NHA donated with INR 170 crores, where it is going to be reduced drastically down because they are now related to stage for all the 3 contractors like [indiscernible].
Okay. And returns on money and mobilization advance, sir? .
Retention money, total better balance is what you were talking in what is the?
Sorry, as on December, it was INR 190-odd crores and some money. So what's the figure for March?
No. I think the debtor is INR 75 or INR 11 crore retention.
[Operator Instructions] The next question from the line of Prem Khurana from Anand Gati.
Congratulations for closing the transaction for high would have good valuation. Sir, just -- I mean I made in your remarks, when you said...
Can you speak louder?
Yes, sure. Am I audible now?
Yes.
I think initially, I mean, reply one of the questions, I mean, you said we are expecting some number from INR 1,800-odd crores from 50 annuity of INR 3,000-odd crores is a balance potential and you gave us the breakup of some of these other projects. What I realized is, I mean, eventually, you have not considered any contribution from these 3 hybrid that you secured simply. So why would that be the case? I mean be I mean, this now you would be able to have EDs in place?
I think I just forgot about excess. INR 500 crores of exhibition per given from these projects, nearly INR 100.
Okay. Sure. So which essentially would imply and you're looking at more than 23% kind of growth for the year? I mean on a Y-o-Y basis?
Around 23%, that's it.
Okay. Second question was, if you could talk about competitive inventories. Eventually instead mean you bid for almost INR 7,000-odd crores of your projects in FY '20 on NHA side. But we could have only 3 projects was around INR 3,000-odd crores, which is even less than 5% conversion ratio. So how do you see the conversion ratio is going to work for us, I mean, in FY '21? I mean we were looking at around INR 5,000 crores of orders on hybrid and INR 1,500 on from NHA. Do you see competitive inventory to go down now? Or it will remain there and you will have to bid for more to be able to get your numbers in place?
So we believe that I think with the new commercial or PD companies, they would be only allowed to defer a project that where -- and there are many projects which for many compared companies, they are having the project we say. The amount of execution has to be done. So we believe that, I think now as we have seen the trend of about 5 to 7 [indiscernible]. About 2 to 12 beers in all the at -- but if you see for sure, we are putting up ever got, but we are expecting that INR 30 to INR in crores from -- it can be from even March or where they have also called other EPC projects. So we are looking at those projects as well from PC lines, not only NHA, some state projects as well, especially Maharashtra.
The next question is from the line of Nikhil Abhyankar from ICIC Securities.
Yes. Over on sort of numbers. Just 2 questions. So focus on the margin. So is it the case that you have given the margin guidance conservatively, given the cost prices are coming down pressures are coming down? So is there any chance as we go along the year, you might -- our operating margins might surprise us on the upside?
Think that whatever you are saying the price escalation now reserve either as a positive or netting if the prices are going down, then certainly the price escalation, which we would be getting would be equivalent. Only what has happened is because of the keep rising commodity of the steel even, especially steel and crude, where it has happened. We have a dip in the margins which we have seen the cost years. But now it is almost, I believe that 15% is 25%. There's a decent range, which we've been looking upon for our relation to this
Okay. And sir, the other question is on -- last year, there was a lot of talk about government reducing the branch person. So is there any word on that from the industry?
So as of now, I think they have not given any signal of that that's going to be reduced, but they have actually touched upon the lenders as well as concessional interest across opportunities of how it may look like. But I always give positive response. It's definitely going to the margin. That's the competition. So that is how, we believe, I think nothing has happened as of now. There was a close this and second-month network pressure here. So nothing has happened now.
And are we pushing from our end to bring the grants down for that?
There are, say, various fees of these technologies and discussions were they and 3 together at the NHBF Forum in older higher situation. They are all looking to have a conducive intent of where the project is done with quality star time line, and that is their intention also, and we also are looking into that. So I don't know how to -- how long it is going to take.
[Operator Instructions] The next question is from the line of Anupam Gupta from IIFL.
Sir, I just have a severe of questions. Firstly, the pipe of or of inflow that is on the sale of products to put into the balance sheet. So we'll come in this year..
Yes, of course, this year only since we have executed already the stating sites. Now we are going to have the complex of the compilation and the completion preference. We have got 3 projects, which we already have completed. So we would be applying to initiate for NHA, getting the NOC from them. It's usual dose that they normally take, let's say, almost 2 last month for that. So one is on all the lenders also. That is one required and there are further obligations for the easier to. But then again, by September, we believe that the all 3 tranche, all these 3 projects, where the fund can we believe, that should be transferred to our account. And followed by this second, we are 6 months requirement from the completion rate for the region rate. So once we -- we already applied to POCD. So with that by October and November, we will be applying to NHA for the early commissions. So by January, we are -- we do expect for the -- the second tranche for the fourth tranche.
Okay. And second question is around the execution side, you have given a guidance of INR 15, do you see any risk to this from this is the election for of funder coming in by the end of this year, mid calendar year in terms of approval? We talked about the date coming through for the new handsets we can address the execution from the elections being there in multiple places.
I think we have valued upon that the majority of our division is going to where the ports being declared as of now as of now. We are just INR 100 crores of 3 HAM projects, which get a Canaport projects. So that's not only what we have assumed. But we don't see that at December, in any case, the government would be looking into the cation of the concert. I don't see any challenge to it.
Okay. And just continuing with on -- was to look into FY given that you had a INR 2,500 crore of profit book. I believe 20% growth. Can be 5% or is it a bit higher?
We do expect that whatever the arrangement has been done in our houses for the CapEx, technology, payment reports and -- but any addition of the range of about INR 3,000 contacts being added during the year and what we believe that 20% is the high yield growth for that range of execution that we would be aiming for, but we believe that is all durable achieve.
[Operator Instructions] The next question is from the line of [indiscernible], Global Financial Services.
I just wanted to know a bit cost growth of...
Sorry?
Your audio is breaking.
Your voice is breaking. I think you are not audible at all.
[Operator Instructions] The next question is from the line of Sarvesh Gupta from Maximal Capital.
Congratulations on a set of numbers. Sir, one thing on the Ganga Expressway, which is where a lot of your execution will be coming this year. So on the crown situation in terms of land acquisition and other approvals for the 80% all remaining how are we placed? Secondly, in terms of the payments from your counterparty, how is it happening given their own challenges that we had earlier seen?
No, the expressway, unlike the other projects also, we have experienced a good amount of land available at the day on the day 1. They're almost 98% level. So that is a good part there. And we have already have set up fig cans along the alignment, where everyone, say, 151-kilometer deals are feted as a project, not a project. So that is how I think the big ports being deployed as far as the execution is concerned. So we're viewing, touching around INR 6 crores a day as of now. So there's a pace of additions, which we are doing, preparing a few of the days where early, I think month rainy season -- rainy days as affected.
Otherwise, as far as payment is concerned, we are getting payments right on time. It was a gap of about 1.2. The initial time in March. But during the month of April, only we have received INR 190 crores from the client. And they are very clear, we are really clear because the government -- government is having the clear guidance on say, instructions to them but to complete the project by December. So this is now, I think, for us, together, the mean targets to achieve. And there are almost -- we have taken the INR 2,000 crores of execution to be done during the year, which is a run rate which we are doing is almost doable.
Understood. And secondly, sir, in terms of your cash flows, so I think we are getting around INR 500-odd crores from the sale. And post tax, how much it will be? And then against that, again, we have to an spend INR 440 crores in new HAM projects. and your working capital will also go up. So overall, for the year, your interest cost and debt will not sort of come down much, right?
No. As far as the year '24, the prepayment of the debt is just around INR 350 crores of some debt. We are out of that INR 190 crores, including INR 189 crores, which is inclusive of NTT payment repay. So this is would be repaid during the year only. And if you see anything, which is a net of INR 531 crores, this is going to be cable because it costs what we have invested and then the return -- we actually the amount is being transferred to you. So this is going to be competitive or not see yet as of now. So ultimately, INR 40-odd, which is going to be invested in to have is hardly it matters that what is the settle cash inflow coming from HAM monetization.
So overall, debt level should remain broadly at the similar level of next financial year?
No, not at all. I think it's going to be roughly come down to around INR 350 crores as the earlier level.
Understood. And what would be of your interest cost because your debt is much lower? So what is the noninterest cost which is included in your financial cost for FY 23?
It's around INR 53 crores of total cost. We announced INR 15-odd to the bank charge LPG commission, et cetera. The remaining interest costs on the MobileShare advance, which we have received from the client even some OD limits and LCD interest and some to interest costs.
[Operator Instructions] The next question is from the line of Dipika from Philip Capital.
congratulations on the set of numbers. My question, I think it would be how much input do we expect this year? I mean in a deal which is that we say would be completed. When will the cost tank completed? And how do we expect that in low and in what manner?
So we will be getting the inflows projects. Do have a different range of, say, monetization to the total enterprise value, which is satiating out of this debt. You take out with a INR 31 crores, it's is the equity realization. So our 4 projects do have a different set of numbers. So once we complete condition precedent from 1 project, we will be getting the home.
So how much ad -- and how much in the -- are we speaking something in Q1?
No. Q1 is not a settle possible because all NOCs are not going to happen by that time. So we would be making -- the arrangement would be done. We believe that we wanted to say, mostly quarter 3 or quarter 3 for the second tranche.
Okay. Sir. I want to talk about the next quarter, quarter 1, how do we pettiness which looks quite cable also. But how do we see quarter 1, especially we're not being affected with the heavy across different geographies in countries?
Yes. I think in average, we have experienced a range across entire one, and most of the bullet what impacted because of that execution. In March, even it got impacted, otherwise we have lost INR 3 crores of execution in March as well. But I don't see much of a change. I think we are testing the 23% year-over in quarter-to-quarter. Again, for last year to this year would be growth range.
[Operator Instructions] The next question is from the line of Shreyans Mehta from Equirus.
Congratulations on a great set of numbers and for the deal. So my 2 questions. One, as far as the monetization is concerned, could we see some deals happening at the preconstruction stage now given that you're getting net deals of this day?
It's not like that. I think there are always intimation from any potential buyer to enter into the first stage, but we always believe that it is better to initiate your discussion once we are hearing your completion. And that is how, I think, 6, 7 to 8 months when we actually complete the work. And by that time, actually technical and everything happens. So this is not the right stage, which we are not actually as initiated, and we don't believe that we are expecting for these 5 projects for the execution that from March until, say, October, November. This all 5 would be competed next year, the '24. So the right time for that is, say, from January onwards, we think to the market or the paths is going to happen. And this is I think whatever is important is that not at the position or the construction stage.
Got it. Got it. Got it. Sure. And sir, besides railways and water, are we targeting any other segment like say, MLPs or pay?
Yes. Of course, both we are exploring. We have already had consistent to give a deep retail sight of all these projects where the operation and maintenance is a big number, which is going to be there. So the business development team is working on it because I think project like Hamala, they have given this name. So they are exploring the possibility for at least, say, INR 300 crores to INR 400-odd crores of road to be awarded in next 3 years. So give the real port. And tunnel also, we expect that order, those organizations. And many of the organizations, they are looking upon it. But we would be already only it all higher projects in other internal even in railway, but we will be looking into this particular sector as well to just tie up with any of the JV partner.
Okay, okay. Sure. And sir, lastly, I mean just wanted to understand the feed rate of the margins that you are making. So we are at the high end of what the industry is making. So sir, what gives us this confidence that we'll able to manage? And how are we managing that in terms of the industry margins?
I think it's not very specific around. There are many areas we work upon, and the road is no kind that in last 5 years once we enter into this market. We have learned a lot. We have provided the bond. We always try to evolve upon the electricity technology, utilization, human resource, CapEx addition depends being at it. So somehow the thing will be being arranged or being run out in that range. So as I already expect got is [indiscernible]. And we are actually leading this kind of results.
But the gain is quite motivated. That is more important. The entire team talked to about at the project level also has totally geared up to looking to all MIs and process controls. They are working hard on an on those targets, right, from time to even operational efficiency. So these are all helping us. And the -- it's not that as a total arrangement being done. So where we always keep on annual operating plan to only -- we always keep on certain targets for any technology to salary and development and mentoring. So these are -- I think things are happening quite well on BP. That is a continuous process. It's not that we have achieved a level of that.
Got it. Got it. And sir, lastly, if I can, in terms of data, what could be outstanding of the total details, the Adani retails.
Already said that INR 270 -- INR 290 crores to be very specific. All of the 3 we received INR 89 crores during the month of April -- and just now may they will be paying INR 110 crore on male -- so think about as early.
The next question is from the line of [indiscernible] from NP Global Financial Services.
We have 700 worth of entire projects. Just wanted to know what is the amount for railways and water.
For the full year? Repeat the question please.
In FY '30, how many orders have you bid for in Railways & Water segment?
Okay. Railways or Metro or any of those, I think we bidded for almost INR 8,000 to INR 9,000-odd crores. There's INR 1,000 crores already has to be open, say, INR 8,000 crores being bit already opened. And railways, it is metro even the 3 projects to bill. And then the water, only 4 projects we did in from UBL let's say and a very -- not a very big amount, so almost INR 1,600 crores of the cage which we did last year.
All right. One more question in order is 20% to 25% of order books in terms of rail and water. Do we have any expectation or any target in terms of how many orders would you like to get upon?
So you are looking for the forthcoming year.
Yes, for FY '24.
Yes, sure. I think it's more important for us. We have already has arranged that the business development unit has been created where the 2 experts. They are exploding the poster areas. So we are doing all our due diligence to be for those visits. So with a small caution, we always put our fingers cross and look for the margins in fact. That is how I think 20%, 25% is not a big number, which we'll be looking upon the total orders and 25 or 26 total orders are from the [indiscernible].
Next question is from the line of Jiten Rushi from Axis Capital.
So the first thing you said that we are planning to bid for this 5,000 projects -- so this will include patient development. So also it will be expeditious?
No, it's not that the station project. Of course, in within saying next 3, 4, 5 months once we are already at in the design of this category because EBT. So once we start that and then we will be looking at the comparison which we are stimulated at the potent stage. But then again, we'll start exploring where are they, but we will be taking a call of 3, 4 months on actually come up to the right expectations, what we have limited and what includes the design cost.
One more thing. Like last year, we had despite order from an -- and we said that earning was we could not capitalize on that. So this year, being the election year, we spent some product on that from January and then other inflection. So how will we -- how are we targeting to restate? Because would have started and running a big dollar role on then in terms of inflows in FY '20. So how do you see that? Like if you don't get orders and probably your guidance and sees a deal on time. Any thought on that?
Already, we have launched from NHA that are almost 2,300 kilometers of bids, which they could not award during the financial year March. So there is this pipeline is going to be continued. We're getting from June onwards. Right now it is in shape. Then again, there is, again, NHA, and there are the projects where the tech opportunities are likely to come when the sanctions are already that present stage. By January, if you see that every time it the second half of the year, there eventually 70% of the bid or 70% of align come, 7 to 18. Now this year, I think it will continue relegating quarters from quarter 2 or 3.
[indiscernible]
I think it's almost 8 -- 7, 8 months from now, by the time, I think most of the wings would be awarded up.
Is showing what is the opportunity in?
Because it's a lean on markman like it is national development program, an HDB scheme of that part of that. Other than that, one up.
What was the mobilization March?
March? INR 150-odd crores.
The next question is from the line of Shravan Shah from Dolat Capital.
Sir, just to get the number right, retention money, you said INR 111-odd crores as of March. And mobilization advances, INR 350 crores.
Say more than an advance is mostly to be...
58.
[indiscernible] and material advances, INR 300. And the bid is -- and retention in the material deposits. We have already confident later level. It's total INR 80 .
I'm slightly confused. So total data is INR 872 -- total debt is INR 871 crores. So out of that, how much is written some money?
Out of that is INR 111 million. Retention [indiscernible]. So with that amount, we all usually consider in the data were because it is a rolling amount, which is being released and being deducted from most of the running bills.
Okay, okay. And sir, what would be the CapEx for the '24 and '25?.
As I already discussed as about say INR 100 crores deals to be added during the year this year. There's a network CapEx. There's actually -- there are a few equipments, which we would be selling during the year as we is INR 30 crores. Capacitation would be INR 100 crores.
Okay. Got it. And sir, any idea you initially mentioned in terms of the NHA launching or any idea when they are likely to launch in any broader in terms of the size because I when started with 6 lakh increase to 12 crore? So any broader idea? So just trying to understand in terms of of next 4.8-year of visibility.
No, I think it's a very comment, but definitely the entire proposal is at the approval stage from the government. We see that as government is having a very priority focus on development, especially highly. So they would be looking into this proposal and approve this proposal by the end of this year.
The next question is from the line of [ Shikar Mundra ] from MIMO Commission.
I wanted to understand for the subsidies which we have sold a stake. What was the equity of those subsidiaries. And what was the debt?
INR 243 crores in all 4M. That is a 996 .
And so what is the whole enterprise of the whole -- enterprise value was INR 1,390. And what is the amount?.
It's INR 133 crores. This is a cash line in the SPV, which has been netted off from the debt. .
Okay. So this okay. So...
So INR 326 crore and INR 531 crores. .
Okay. So basically, the book value of these projects are the equity value of INR 343 crores, and we are getting the INR 551 crores equity value. So is it a income basically around INR 200 crores .
Other income because of return on value is the valuation which we are getting, which we are interested in the industry in the overhead projects over a period of last 3.5 years.
Yes, yes. So it's basically a INR 200 crores of income, which is generated by the sale.
Yes. The follows quantity INR 190 crores, which is over and above that.
Okay. All right. And what do you mean that the valuation of the deal was a price to book?
1.5 is the valuation. If you see to the number INR 531 divided by 3 is a quarter..
And out of these 2 projects, like how many of them are completed?
It's all 3 of those projects, which we as a tranche one, we are aiming and looking for the payment to come, all completed. We already applied the completion, most likely within the tenders, we will be getting the completion of that. But in the provisional completion, there is some work of CS and some of the work in [indiscernible] 61% will be executed with the next 6 months. Before that, we would be looking at the second tranche of this particular -- so where the payment is likely by January, we would be in.
Okay. And the construction was done by our company only?
Of course.
[Operator Instructions] Ladies and gentlemen, we'll take the last question from the line of [ Kush Bogari ] from JS Securities.
Can you hear me? Just a verification on the revenue guidance for FY '24. So you quoted a 20% to 23% growth therein. SP1 But in either bifurcation, it's coming to about 18 to 19 million. So we are expecting a revenue of INR 5,200 crores in FY '20.
It's INR 1,200 crores and then INR 500 crore I missed and roughly at around INR 5,500 crores, which is 23%, 24% of the total.
If you don't mind, can you break up?
No, no. See, the break up the trial has given for the HAM project under execution and projects, new and projects, the next say EPC budget. This altogether, which is coming for the year, the FY '24 is roughly around 350 to 600.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.
Thank you. We had a successful year, and we are committed to deliver better with our dedication and hard work in the future. Our strong financial performance, drive order growth, balance sheet and dedicated workforce give us the confidence that we will continue to experience. We appreciate everyone joining us today on the call and hope that we have addressed your all visions. If you have any further team, do not hesitate to reach to us or our IR adviser, Go India Advisors. Thank you again for your participation.
Thank you. Ladies and gentlemen, on behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.