PNC Infratech Ltd
NSE:PNCINFRA
PNC Infratech Ltd
PNC Infratech Ltd. engages in the infrastructure development and construction business. The company is headquartered in Agra, Uttar Pradesh. The company went IPO on 2015-05-26. The firm is primarily engaged in the areas of infrastructure projects, including highways, bridges, flyovers, power transmission lines, airport runways and other infrastructure activities. The firm's segments include EPC Contract and BOT (Toll and Annuity). The company offers end-to-end infrastructure implementation solutions that include engineering, procurement and construction (EPC) services. The company is involved in the construction and development of highways, bridges and flyovers, and industrial area development. The firm implements projects on various public-private-partnership (PPP) formats, including design-build finance-operate-transfer (DBFOT) and hybrid models. The company focuses on road-building projects in Uttar Pradesh, Madhya Pradesh, Rajasthan, Uttarakhand, Bihar, Delhi, Karnataka and Maharashtra.
Earnings Calls
In the third quarter of FY '25, PNC Infratech reported revenues of INR 1,205 crores and an EBITDA margin of 12.1%. Despite challenges in project awards, the company expects order inflows of INR 6,000 to 9,000 crores by March, totaling up to INR 15,000 crores for FY '25. For FY '26, they foresee similar revenue with targeted EBITDA margins around 13%. Key projects are resuming, projecting revenue growth of 35% as infrastructure activity picks up, supported by INR 1.8 lakh crore government funding for highway expansions.
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Ladies and gentlemen, good day, and welcome to the Q3 FY '25 Earnings Conference Call of PNC Infratech hosted by Batlivala & Karani Securities India Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Sheth from Batlivala & Karani Securities. Thank you, and over to you, sir.
Thank you, Steve. Good afternoon, ladies and gentlemen. On behalf of B&K Securities, I'm pleased to welcome you all on PNC Infratech Limited Q3 FY '25 Earnings Conference Call.
We have with us the Managing Director of the company, Mr. Yogesh Jain, along with the senior management team. We will begin with an opening remarks from the management, followed by an interactive Q&A session. Thank you, and over to you, sir, for the opening remarks.
Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call.
Today, I have with me Mr. Rao, Director, Infra; Mr. D. K. Agarwal, CFO; Mr. D.K. Maheshwari, Senior Vice President; and Strategic Growth Advisors, our Investor Relations Advisors.
We have uploaded the financial results and investor presentation on the stock exchanges and company website for your reference. Initially, I would like to mention key update of the industry, followed by the operational development of the company and highlights of the financial performance during the quarter and 9 months of financial year '25, post which we will be happy to answer your questions.
Like last year, the first 9 months of current financial year also witnessed subdued new project awarding activity by both MoRTH and NHAI. It is understood that total hold on the Bharatmala program, general elections held in June '24 and delay in acquisition of minimum land required before bidding are the key reason for very low project awarding activity.
However, since beginning of fourth quarter of current financial year, awarding activity is getting expedited by both MoRTH and NHAI, as such sizable number of new projects on EPC, HAM and DBFOT toll modes are expected to be awarded before 31st March '25.
Highway construction activity declined by nearly 6% in the first 9 months of financial year '25 to 5,283 kilometers from 6,216 kilometers in the same period of financial year '24. During the current financial year, execution of already awarded projects severely impacted due to intense and prolonged monsoons and low awarding activities over the past 1.5 years and persistent delay in declaration of appointed dates due to nonavailability of land for commencement of construction.
Providing peacefully processed minimum back-end ROW has become critically important for both timely commencement of awarded projects and uninterrupted construction. In recently introduced budget, the government allocated INR 2.8 lakh crore to Ministry of Road Transport and Highways for financial year '25-'26. Out of the total budgetary provisions allocation to NHAI has been increased to INR 1.8 lakh crore for highway expansion and modernization programs.
To further optimize infrastructure development, MoRTH is implementing a corridor-based approach, prioritizing uniform standard, enhanced user convenience and improved logistic efficiency. This initiative aims to seamless transportation, reduce travel time and lower logistic cost foster better connectivity and seamless mobility across the country.
To leverage technological advancement, which is playing a pivotal role in infrastructure, MoRTH is exploring adoption of artificial intelligence in infrastructure, particularly through automated and intelligent machine-aided construction that is called AIMC for national highway project. Notably, our company is at the forefront of this initiative, having implemented automated and intelligent machine-aided construction for the first time in India at Lucknow-Kanpur Express highway project.
As part of this state-of-the-art technology, graders, rollers and paver fitted with GPS-based 3D machines, guidance and control systems for precise grading, compaction and paving conforming to design parameters. This technology also ensures real-time monitoring and controlling of operations. This innovative approach is poised to bring revolutionary change in road construction in India.
Now coming to the recent update on the company. On the project development side, the company subsidiary Highway Private Limited received [Technical Difficulty].
Ladies and gentlemen, we have lost the connection to the management. [Operator Instructions].
Yes. Now coming to the recent update on the company. On the project development side, company subsidiary Hathras Highways Private Limited received PCOD for it's HAM project on 31st October 2024 two months ahead of scheduled completion date for Mathura 1C package.
On the asset monetization front, during the quarter, the company received in principle approval from NHAI for the divestment of company's interest in 8 target assets. For the remaining 3 assets, approvals are expected by the end of this month. The company has already received NOC from 34 lenders for 11 projects. On the project awarding front, the company has received letter of award of 3 EPC projects for an aggregate contract value of INR 6,670 crores in the state of Maharashtra.
During the quarter, we have received INR 108 crores from the government of Andhra Pradesh towards work done for the canal upgradation project. We are pleased to share that as per the MoRTH order dated 6 February 2025, the disqualification imposed on the company and its 2 subsidiary has been reduced from 12 months to 4 months, accordingly we will resume participation in the bidding process of MoRTH, NHAI and NHIDCL from 18 February 2025 onwards.
Now moving on to operational and financial performance of the company. We have 28 fund-based projects out of which 3 are BOT toll project, 2 are BOT annuity project and 23 are HAM projects. Out of 3 BOT toll projects, concession period for one of the project Kanpur Kabrai toll project concluded on 20th January '25 and accordingly tolling operation has been handed over to NHAI.
Aggregate bid project cost of 23 HAM project is over INR 30,000 crores, which is one of the largest highway HAM project portfolio in the country. Out of total 23 HAM projects, 12 projects achieved PCOD and COD, 7 projects are under construction, 3 projects achieved financial closure and appointed dates are to be declared, for one project concession agreement was executed with the MPRDC on 7th March '24 and financial closure document has been executed and submitted to MPRDC.
The total investment requirement for the HAM project is INR 3,092 crores. Till December '24, company already invested INR 2,283 crore and the remaining equity of INR 809 crores is to be invested over the next 2 to 3 years.
The internal accruals that would be generated over the next 2 to 3 years should be adequate to meet the above equity investment requirements.
Now moving on to our order book. As of 31st December '24, the company unexecuted order book stands over INR 18,900 crores, which includes 3 EPC contracts secured by the company in '25 for aggregate contract value of INR 6,670 crores.
Out of the unexecuted order book, highway expressway contract contribute around 75%, while water canal area development and railway project contribute around 25%. In the terms of projects proponents out of total unexecuted order book of INR 18,900 crores value of MoRTH including NHAI contract comes to 30% and value of contract awarded by other authorities comes to 70%.
Now moving on to the stand-alone quarterly results. Revenue for the third quarter of financial year '25 is INR 1,205 crores. The EBITDA for the third quarter of financial year '25 is INR 146 crores. The EBITDA margin for the third quarter of financial year '25 is 12.1%.
The profit for the third quarter of financial year '25 is INR 83 crores. The PAT margin for the third quarter of financial year '25 is 6.9%.
Now standalone 9 months results. Revenue for 9 month of financial year '25 is INR 4,099 crores. The EBITDA for 9 months of financial year '25 is INR 873 crores, which is higher by 23 percentage compared to INR 712 crores in 9 months of financial year '24. The EBITDA margin for 9 months of financial year '25 is 21.3%.
The profit for 9 months of financial year '25 is INR 585 crores as compared to INR 447 crores in the 9 months of financial year '24, a growth of 31% on year-to-year basis. The PAT margin for 9 month of financial year '25 is 14.3%.
Consol quarterly revenue for the third quarter of financial year '25 is INR 1,470 crores. The consol EBITDA for third quarter of financial year '25 is INR 379 crore. The EBITDA margin for quarter 3 of financial year '25 is 25.8%. The consol PAT for third quarter of financial year '25 is INR 81 crores. The PAT margin for third quarter of financial year '25 is 5.5%.
Consol revenue for 9 month of financial year '25 is INR 5,065 crores. The consol EBITDA for 9 months is INR 1,704 crores as compared to INR 1,268 crores in the 9 month of financial year '24, a growth of 34%.
The EBITDA margin for 9 month of financial year '25 is 33.6%. The consol PAT for 9 month of financial year '25 is INR 740 crores as compared to INR 514 crores in 9 month of financial year '24, a growth of 44%. The PAT margin for the 9 month of financial year '25 is 14.6%.
On the standalone balance sheet side, as on 31 December '24, our net working capital cycle is 167 days. Our net worth on a standalone basis is INR 5,353 crores as on 31st December '24, whereas total standalone debt is INR 397 crores.
The total cash and bank balance as on 31st December '24 is INR 743 crore. We have a net surplus of INR 345 crores, which translates to net debt to equity of 0.7x. On consol basis, our net worth is INR 5,911 crores, whereas total debt is INR 9,332 crores as on 31st December '24. The total cash and bank balance including current investment is INR 1,701 crores. This translates to net debt to equity of 1.58x.
With this, we now open the floor for question-and-answer. Thank you very much.
Before we start the Q&A session, I would like to read out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict.
[Operator Instructions]. The first question is from the line of Shravan Shah from Dolat Capital.
A couple of questions. So first, in terms of the inflow and the revenue front. So now the ban on NHAI and the MoRTH is ending, and we will be able to bid from the 18th of February onwards. So how now we are looking at in terms of the order inflow by March end? And maybe if you can help us for next year also. And there also from NHAI and the MoRTH side, particularly, how much are we looking at in terms of the order inflow by March and next year?
See, so far this year, we received new orders worth of INR 6,670 crores. We are expecting new orders before end of current financial year, maybe next 6 to 7 weeks of another INR 6,000 crores to INR 8,000 crores -- 6,000 crores to INR 9,000 crores. So our order book at the end of the -- new orders at the end of the financial year for the -- during the current financial year be around INR 13,000 crores to maximum INR 15,000 crores. So we don't want to -- now see dwell into it how much would be from MoRTH or from the other clients, but it would be around INR 13,000 crores to INR 15,000 crores and our new orders for the financial year FY '26 also be in the same range, INR 13,000 crores to INR 15,000 crores.
Got it, sir. And now in terms of the revenue, so already, if I exclude the arbitration and everything, so 9 months, we are already down by close to 32-odd percent. So in the fourth quarter, excluding the arbitration, which was there in the last year fourth quarter, of INR 297 crores, so how we look at the core revenue front, how much are we looking at? And given that now the order inflow will pick up, so for next year because the base itself is low, so how we are looking at the next year revenue?
So in the current year, overall, we are looking at a revenue which would be lesser by 25% to 30% in comparison to FY '24. And subsequently in the next year, we are expecting a increase in the revenue, guidance would be plus 35% over FY '25.
Sir, when we are saying 25% to 30% lower this year, so this excludes the arbitration. So this is a pure construction revenue we are talking about?
This is a pure construction revenue.
This includes arbitration also because last year also, we have an arbitration of around INR 300 crores. So this 25% to 30% decline is inclusive of arbitration what we have received during the first quarter of current financial year.
Okay. Got it. And now -- and margin, obviously, we will be maintaining 12% -- 12% to 12.5%, next year 13%?
Yes.
Yes. Now if you can share the couple of balance sheet and the project-wise order book data points. So inventory, trade receivable, payable, retention money, unbilled revenue, mobilization advance?
Retention money is INR 172 crore and mobilization advance is INR 671 crores.
Sorry, 271?
INR 671 crores, mobilization advance.
Okay. Inventory, debtors payable?
Inventory is INR 746 crore and debtors is INR 1,668 crores, 1-6-6-8.
Okay. And creditors payables?
INR 760 crores.
And in debtors, how much is HAM and water debtors?
EPC 64%, which is INR 1,070 crores and 36% is HAM, which is INR 598 crore.
INR 598 crore. And water debtors?
Pardon?
Water project, how much is outstanding?
792.
792. Okay. And a couple of project-wise order book, if you can share, that would be very grateful. So starting with the irrigation project, so how much is outstanding value as on December?
It is 924, sir.
Okay. Kanpur Package 1 and Package 2, Kanpur-Lucknow.
Package 1 is 238 and Package 2 is 292.
Mathura Bypass, Gaju Village?
Mathura Bypass INR 193 crore.
INR 193 crore. And Hardoi?
Hardoi [Foreign Language] almost completed.
Okay. Similar would be the Gaju Village-Devinagar should also be complete?
Yes.
And this both Unnao-Lalganj and Meerut-Nazibabad should also been completed?
Yes. Completed.
And Challakere-Hariyur also completed or something is left?
Yes. Challakere [Foreign Language] that is INR 54 crore.
And Haryana Rail Orbit?
Haryana INR 620 crore, 6-2-0.
And the last one is Prayagraj Kaushambi.
Prayagraj is 469.
The next question is from the line of [ Vignesh Iyer ] from [ Sequent ] Investments.
Sir, I wanted to ask on the net working capital days side of the business. So on an average, what the 90 to 100 days that we used to maintain for the last few years, our net working capital days is on a higher side. I mean how do you look this to be going ahead probably for FY '26 and further? Can we see the normalized 100 days coming back for net working capital days?
Yes, we are expecting FY '25 even 105 to 110 days because this is a temporary increase in the net working capital because of the advances given to the supplier because there are 8 projects where we have not started the work. So we have mobilized the contractor ,then we are giving the advances, that is why it is increased. And secondly, because of the mutual fund around INR 440 crores of 31st December as against INR 3 crores in March '24. So because of these 2 reasons, it has increased to INR 167 crores. Otherwise, it is around 100 to 105 days. It is a temporary phenomenon because as soon as work will start in the project, the bills will get adjusted against that advance.
Okay. Got it, sir. What is the kind of order inflow that we are seeing in quarter 4? I mean there were announced -- I mean there is expected to be a lot of announcement post all the election things are done with, I mean, after the Loksabha-Maharashtra election, et cetera. So -- and also after the recent -- is there any major inflow that we are seeing coming in quarter 4?
Till December, we have received the order of INR 6,670 crore and we expect around INR 6,000 crores to INR 8,000 crores by March. So total will be around INR 13,000 crores to INR 15,000 crores during the FY '25.
Okay. And what -- are you saying -- and what would be the order inflow, I mean, expected going ahead in FY '26?
FY '26 also we are expecting around INR 15,000 crores contracts.
The next question is from the line of Jainam Jain from ICICI Securities.
So sir, my first question is how are we seeing the order pipeline for FY '26?
See, as our Managing Director has mentioned, for NHAI itself INR 1.8 lakh crore budgetary allocation was made by the Government of India, apart from their internal accruals and the other divestment program they are doing. So we expect a very robust pipeline of projects both from NHAI and MoRTH apart from the other clients because the railways and other sectors also funds have been allocated for the infrastructure whole. So we're looking forward to have a very robust pipeline of projects next financial year. So definitely, we'll be able to leverage those opportunities to secure around INR 15,000 crores of new projects during the FY '26.
Okay, sir. And are there any major projects for which we are expecting the tenders to be floated in the coming quarter or you can say in H1 FY '26 and where we will be looking further to participate?
Yes. We still have 1.5 months left for the start of next year.
So can you name a few major projects?
And also then we'll be expecting pipeline for the next financial year also.
Sir, major infrastructure projects to be named, sir?
Yes.
The next question is from the line of Sarvesh Gupta from Maximal Capital.
Sir, what is the stand-alone net debt as of now, sir?
So our debt is INR 397 crores, sir.
Yes. Net of cash, sir, debt minus cash.
Net of cash is surplus of INR 345 crores sir.
Okay. So INR 345 crores net cash?
Net cash. Yes, net cash.
Okay. Okay. And sir, so what we are saying is in the next 1.5 months, so till this 40 days, how much of order inflow has happened in this quarter, sir?
We are expecting around INR 9,000 crores.
In this quarter, we are expecting INR 6,000 crores to INR 8,000 crores, sir. And already we have received till December INR 6,700 crores.
No, so INR 6,700 crores is understood, that is for first 9 months. Now in these 40 days till now in this quarter, how much have you received till now?
No, as of now, for this quarter till date, we haven't received any new orders. But going forward, during the next 40 days, we expect to receive INR 6,000 crores to INR 8,000 crores new orders.
INR 6,000 crores to INR 8,000 crores you expect, sir, and what is the pipeline of bidding on this? I mean what kind of win ratios are we looking at? Because this INR 6,000 crores to INR 8,000 crores looks very steep to happen in just 50 days for you?
Yes, yes. Because see, the non-MoRTH itself, there are projects of worth more than INR 20,000, INR 25,000 worth of projects are there, which have already been floated. And both MoRTH and NHAI floated projects worth of INR 1,27,000 crores which are to be bidded out in next 5 to 6 weeks time, comprising both EPC, HAM as well as DBFOT toll projects. So the pipeline is very huge, the bidding pipeline.
So because as you see we, in the past history, during the month of February and March, a large number of projects are bid out, bids received and awarded before end of March. So out of INR 1,50,000 crores, what we are expecting around 4% only. So that much projects we are confident of getting before 31st March.
Okay. Understood. And sir, this -- now in terms of your revenues, so even if I adjust for INR 300 crores of FY '24, I get to INR 7,400 crores last year, and that had a stand-alone EBITDA margin of around 13.2%. So what would be the sort of the EBITDA margin guidance for FY '26? Because what you are saying is FY '26 revenue should be similar to FY '24, right?
So are we looking for a slightly lower EBITDA margin given the change in the mix? Is the NHAI projects being only 30% of our book, giving us lesser margins? So can you explain that, like how do you look at the margins?
See, for FY '26, as you had mentioned, we are looking at an EBITDA margin of 13%, which will be akin to the FY '24 margin. See, NHAI projects are there and there are projects from other clients also. As I mentioned, the ratio is as of now 30-70. So overall, we are looking at a 13% EBITDA margin for FY '26.
Okay. And are the margins similar, sir? Because you are getting a lot of projects from non-NHAI, MoRTH. So how are the margins, same or different?
Margins are more or less same from MoRTH and non-MoRTH projects. So margins are more or less same. So overall margin, if you say that would be around 30% in FY '26. We don't foresee any decline in the EBITDA margin in FY '26. So 30% what we are reasonably expecting.
And this INR 6,700 crore that you have received, this is all Maharashtra, I understand. So many of -- I think there are some concerns on this MSRDC project, and I think there has been some delays, et cetera. So when do we expect the execution to begin on these projects? And what is the current status of this?
MSRDC, we received 2 projects, Nanded-Jalna project, which is the expressway project and another project is the Pune Ring Road. In Nanded-Jalna we already commenced the project. We already commenced the construction. So there we -- and the Pune also, we are expected to commence the construction during the current quarter because the government after the state assembly elections they expedited the process of land acquisition, possession and giving the land. So we don't foresee any major issue there. So definitely, these projects will be executed as per the schedule, and we would be able to complete within the scheduled time.
And the CIDCO project, sir?
CIDCO project also all preconstruction activities we have commenced and we mobilized the resources, and...
We have received advance also.
We received the mobilization advance also, first tranche. So CIDCO project also, we are going to commence the construction during the current quarter.
So out of this INR 19,000 crore of order book, sir, how much are you currently working on and how much is like somewhat away from execution phase?
See, Maharashtra projects are having INR 6,600 crores, plus then for NHAI projects we have appointed date for another INR 3,000-odd crores projects. So we are working around, let's say, Maharashtra and this thing, INR 9,000 crores to INR 10,000 crores worth of projects we are working on.
Okay. So with this INR 9,000 crores, INR 10,000 crores, sir, we feel confident that next year itself, we can do INR 7,500 crores because all the newer projects may not start immediately and it will take up to second half of next year to start many of the newer projects, which we will win. So from this INR 9,000 crore order book, which is under execution, can we get INR 7,500 crores next year?
INR 9,000 crores orders which are actively we are constructing which are the ongoing projects, will not give INR 7,400 crores. Certainly, we'll get some revenues from these new projects, which we talked about more than INR 10,000 crores project. And also then we will be getting some projects before end of the current financial year, again, which will give again some revenue from the Q3 onwards, FY '26, Q3. So overall, that INR 7,400 crores, what we are telling at par with the FY '24, are otherwise 35% over and above the current financial year, we should be able to achieve the revenue.
The next question is from the line of [ Ashish Shah ] from HDFC AMC.
Sir, a few questions. In the water segment, can you update the status of on-ground execution? Whether there has been any improvement in the recoveries of receivables in 4Q? Because you did mention that there's some INR 800 crores, which was outstanding as of December. So how is the Q4 looking? And what is the outlook for this segment as you go ahead?
See because there is a paucity of funds from the Government of India, but however, now in the new budget, they allocated more than INR 60,000 crores for the Jal Jeevan mission for the FY '26. So we expect the fund inflow from the Government of India and also matching funds from the state government from new financial year.
Nevertheless, state -- we are expecting some funds from the state government in the current financial year itself before 31st March, from which we should be able to realize our payments, which have been outstanding for quite a few months. And from first quarter of FY '26, there should not be any issue of receiving the money.
Okay. Also in terms of the projects where you are awaiting appointed date, I think that's about INR 4,100 crores, which you mentioned. When do you expect the appointed dates for these projects, sir?
We are expecting declaration of appointed date before end of the current financial year, that is before 31st March 2025.
Sir, what is the land acquisition status? If you can just spell out by projects, where are you in terms of the current land acquisition in these projects?
Land acquisition has been improved over the last 3 months. Now readily, the exact figures are not readily available. We'll share with you.
But sir, are we confident that we'll get some execution cycle before monsoon in these projects or do you think this can all spill over to post monsoon only?
No, no. Yes, we are expecting some kind of execution and the contract revenues during the first quarter of FY '26 before onset of the monsoon.
Okay. Maharashtra projects, you did say that there are some initial mobilization and construction activities have started. But if you can just dwell a little bit deeper on what's the kind of on-ground status in terms of land available and what kind of execution you would expect from these projects within Q4 and how does next year look?
So if you can just sort of spell out how Q4 looks for these projects and what kind of execution you will expect in next year? Because these are very sizable projects, so it's important to sort of monitor how these projects will shape up.
See, as we have mentioned, out of 3 projects, 1 project we already commenced the construction. We expect some certain revenue in Q4 itself from this project, more particularly Jalna-Nanded. Other 2 projects also, the construction will be commenced during this quarter itself, but the contract receipts may not be sizable during the current financial year. But nevertheless, from Q1 onwards -- Q1 of FY '26 onwards, all these projects will start giving sustainable revenues going forward and all these projects will be commenced in full swing.
But physical work for Pune and CIDCO will certainly happen within 4Q -- start of construction will certainly happen is 4Q onwards?
Yes. That's what we are targeting to start the physical construction during the current financial year itself before 31st March because as we have already mobilized a large part of our resources, so we are expecting commencement of works on the ground at these 2 projects also before 31 March.
All right. And sir, last question. You talked about the increase in working capital. One, you said because of the mobilization advances, et cetera, that you have given. There is something else also that Maheshwari, sir, mentioned, but I missed that. So if you can just repeat why this net working capital has increased?
It is mainly because of the advances to suppliers. Secondly, we have invested in the mutual fund. Fraction of money in the PMT, we have invested in the mutual fund, which was INR 3 crores in March '24 has increased to INR 440 crores in December '24.
So sir, when you -- in the presentation, when you are giving the net working capital number of 167 days or something like that, you are also including this mutual fund investment of INR 400 crores.
Yes, yes.
All right. All right, sir. And when you gave the cash number of INR 743 crores, that includes the mutual fund investment.
Right.
The next question is from the line of Dhananjay Mishra from Sunidhi Securities.
Sir, first question is with respect to our -- this HAM project monetization. So what is the kind of this approval is required and when we expect this to conclude? [Technical Difficulty].
Sorry to interrupt. The line for the management has been disconnected. [Operator Instructions].
So I just wanted to ask about this divestment thing. So what is the kind of approval from regulatory authorities required and when at best we'll conclude this monetization?
The NOC required from lenders as well as from the authority. And out of the 12 assets, we have already received the NOCs of 11 projects from 34 lenders as on date. As regard the NOC from authority, out of 11 projects, we have received the in principle approval of 8 projects and we are expecting by end of this month we will receive the NOC from 3 projects from the authorities. So we are expecting that by end of this March '25 11 assets will be monetized out of 12.
By March '25?
Yes.
And what is the equity IRR we will be making from this project?
It will depend on the closing because the equity we have invested in all 11 projects is INR 1,619 crores, including gold loan. And what will be the realization actually we will come to know only at the time of closing because certain working capital adjustments are there, it will come to know only at the time of closing only, sir.
Okay. And with regard to INR 6,000 crores to INR 8,000 crores we are expecting in next 40 days, so this is based on bids already submitted? I mean what is the size of bid we have already submitted and we are expecting this tender to be finalized? [Technical Difficulty].
Sorry to interrupt, the line for the management has been disconnected. [Operator Instructions].
This is with respect to order inflow guidance you had given for next 40, 45 days, which is INR 6,000 crores to INR 8,000 crores. So this is based on the bids already submitted or we are expecting bids to be submitted and then this tender will be awarded before 31st March? And what is the size of bid we already submitted?
See, as we mentioned, so whatever bids we have submitted, that is very marginal amount, about INR 5,000 crores worth of bids are pending for opening of price bids. But other bids, we are going to submit in the next 2 [Technical Difficulty].
The management line has been connected again. Please go ahead.
So you will participate in bids after 18 February, which will open after 18 February, right, and then you are expecting these bids to be awarded before 31st March.
Yes, yes, yes. The awarding activity has been very, very expeditious as we experienced in the past also. So whatever bids will be submitting before third week of March will be awarded before the end of March. So the pipeline is very robust. More than INR 1 lakh crores worth of bids have already been floated with a different bid due dates spanning from 18th February till end of March.
And which are the states where we are seeing major pipeline, where we'll be participating?
No, no. These bids are -- whatever bids they floated, these are across the many states from this thing from North to South and East to West. So we have to see really for which state, how many bids have been listing. But this is spread across the country.
The next question is from the line of Parikshit Kandpal from HDFC Securities.
Sir, my first question is in the L1 order. So what is the value of the L1 order?
Which L1?
This Bhandara to Gadchiroli EPC project.
That is around INR 2,400 crores.
But you have not included that in that INR 6,700 crores of inflows, right?
That is not included in that.
So for the first -- for the Q4, as of now, you have L1 of INR 2,400 crores, which -- where the LOA is expected?
Yes.
Okay. Sir, second question is on JJM. Now we have close to INR 800 crores of debtors in water segment. And first 9 months, if I look at your revenues, so it's about INR 600 crores from the water segment. And maybe this year, you will end up close to -- if I take Q3 numbers of INR 192 crores, somewhere around INR 800-odd crores, you will end up. So which means that you already have a year of receivables from this project, which is outstanding.
So just wanted to understand, in this financial year, did you receive any money at all from the JJM projects? So if you can help us understand from the start of the financial year till now, what has been the collection in this project?
Yes. Yes. This financial year, we have received money. Till October, we have been receiving money till October. Only from November onwards only we are expecting paucity of funds from the SWSM, till October we have received, whatever money now is pending, that is whatever work done towards this and certain money was due in the last financial year that we have realized, INR 750 crores we have realized this year till October.
It was INR 925 crores on March, it is now INR 792 crores.
Yes, plus which includes INR 600 crores...
Okay. So INR 925 crores was outstanding as of March '24 end and now it's less than INR 800 crores. So you have received...
Yes, yes.
We expect to -- we start receiving the money latest from April onwards. If the state government provides a certain amount, what is out of their 50% money, then we may be getting some amount during the March also.
Okay. Just one question, Yogeshji, I mean we -- I mean, almost the entire industry has been talking for the last 3 quarters on positivity on the NHAI ordering and pipeline being more than INR 1.2 trillion or INR 1.1 trillion, INR 1 lakh crore-plus. And we always remain hopeful last year also FY '24, we were hoping that orders will come.
And we only come to know when we are at Feb end or maybe March that ordering will happen. But I just want your opinion on this. I mean you're still holding on to that 1 lakh number. So do you think versus last year this time, there's a high probability of this pipeline converting into order inflows or even for this year, we would end up maybe INR 40,000 crores or INR 50,000 crores of inflows?
[Foreign Language].
Okay. So basically, [Foreign Language] this was more of a procedural delay from the land acquisition side. But intent-wise, still the pipeline is looking good and you think that there will still be continuity in awarding in this year or next year?
Even pipeline [Foreign Language].
But sir, I was hearing that something -- some deliberation has gone in PMO that the quality of roads has gone down significantly, and that's the reason PMO has advised the ministry to increase [Foreign Language] so that the qualification criteria which got diluted post COVID and a lot of low-quality contractors came in. So now I think PMO has advised -- what I mean hearing the PMO advised not to increase the size so that good quality capable financially worthy contractors are able to execute the projects. [Foreign Language]. I mean, is it also one of the reason?
Actually, [Foreign Language], but it's a part of...
Just last thing, [Foreign Language] will be eligible to bid for all these projects, right?
Yes.
[Foreign Language] subject to some conditions [Foreign Language].
[Foreign Language].
Okay. So now you have clear signal from them that from 18th onwards -- from 18 morning or midnight of 18 onwards, you'll be able to bid for all the projects, which will come from MoRTH, NHIDCL and NHAI.
In entire India and every department.
So we'll be on other side of the mountain from 18th.
[Foreign Language], sir, congratulations for that. Finally, you could get [indiscernible] much needed, yes.
Okay.
The next question is from the line of Vaibhav Shah from JM Financial.
Sir, what would be your guidance for revenue from the JJM projects for the entire year for FY '25 and '26?
This year, we -- see, already we achieved more than INR 600 crores. So we are expecting total guidance for the current financial year would be between INR 800 crores to INR 850 crores. And the next financial year, we are expecting some expedited progress and it would be around INR 1,200 crores around in the next financial year. And the government also has increased the JJM tenure until end of FY '28. So we have time to complete these projects and put them into operation.
So remainder should be done in FY '27, around INR 1,700 crores?
No, we'll be progressively putting these projects into O&M mode. We started the process. It's not like that the entire this thing. As we complete each unit, each scheme, so we'll be pushing them into the O&M mode in a progressive manner. So gradually, we'll be able to put all the projects into O&M mode in FY '27.
So will be finished in '27 [indiscernible] entire [indiscernible].
Yes, entire balance work and all projects will be [indiscernible].
Around INR 1,500 crores to INR 1,600 crores.
Yes, yes.
Okay. Sir, secondly, on the irrigation side, our order book is around INR 924 crores. So we were expecting a pickup in execution in '25 and '26. So what would be our revenue guidance for irrigation project as well since you received money as well?
See now the water receded in the canal system, from the middle of February, we are expecting the resumption of work in the irrigation project. And the next 1.5 months, we should be able to get around INR 50 crores to INR 60 crores project. And in the next financial year, we are expecting around INR 400 crores to INR 450 crores revenue from the irrigation project.
So this should be completed in FY '27?
Yes, that's '27. And they already extended, given the extension of time for this particular project.
Okay. Sir, secondly, on the monetization side, last time we had mentioned that we want to monetize 10 assets in this year and the remainder will go into first half or by September or October of next year. So do you maintain the same guidance?
Yes, yes. We are maintaining -- in fact, we are targeting 11 assets this year before end of financial year, monetization and the closure and the transfer of asset before 31st March, 11 assets out of 12. And the remaining assets maybe in the Q1 of FY '26, latest by Q2.
So remainder would be only 1 HAM in next year?
Yes, 1 HAM in next year. This year, 10 HAM and 1 BOT toll.
So can you just give the numbers? What would be the equity investment in those 11 -- 10 HAMs and 1 BOT and for the last 1 HAM?
11 projects, equity, we have infused INR 1,620 crores, sir.
Okay. And for the 1 HAM that will be coming next year?
INR 190 crores, 1-9-0.
And what equity valuation we will be getting for the 11 assets, 1,620 [Foreign Language].
[indiscernible] depends at the time of closing because certain working capital adjustments are there and...
The number what we are expecting?
Yes, earlier, we have given the note about 1.67x of the equity invested at the time of signing of the share purchase agreement.
Okay. So it should be similar to that number?
It is around the same number.
Similar number.
Similar number.
Okay. And sir, lastly, for the HAM projects that you are expecting appointed dates, so we are confident to get them by March. So any execution we expect in Q4 or it should be largely next year only?
See, Q4, though we are expecting commencement in Q4, the contract receipts and the work will not be as significant in the Q4, but we start expecting the revenues from Q1 FY '26 onwards, that would be the practical kind of a thing.
And sir, lastly, there was some confusion regarding the revenue guidance for FY '25 given the bonus and claims that we received last year and this year as well. So for Q4, so versus INR 1,200 crores of revenue in Q3, what could be the run rate for Q4? That will be much easier to understand the entire year guidance, it will be closer to INR 1,600 crores, INR 1,700 crores or it can be even more?
No, it will be closer to the -- it will be around that number.
The next question is from the line of [ Ketan Jain ] from Avendus Spark.
Sir, my question is on your order inflow guidance for next year. You said around INR 15,000 crores order inflow guidance. Sir, it would be helpful if you could bifurcate into roads or water in the segment-wise?
See as of now, we are primarily looking at road sector only. See, whatever projects we got the order, INR 6,670 crores, more than INR 4,000 crores from the roads of MSRDC. One project is the area development Navi Mumbai Airport Influence Authority, so influence development authority. So that is the area development kind of a thing. And the remaining whatever we are expecting it will be essentially from the roads and highway sector only because...
Anything for the road sir?
Yes, INR 1 trillion worth of projects are coming in NHAI itself, more than INR 1 trillion. So we're expecting from the -- primarily from the road sector.
Thank you. Ladies and gentlemen, due to time constraint, this was the last question for today's conference call. I now hand the conference over to the management for their closing comments.
Thank you for your time and trust in the PNC Infratech Limited. In case of further queries, you may get in touch with the Strategic Growth Advisors, our Investor Relations advisers or feel free to get in touch with us. Thank you very much.
On behalf of PNC Infratech, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.