H.G. Infra Engineering (NSE:HGINFRA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to SG Infrastructure Engineering Limited q two FY twenty seven earnings conference call hosted by Go India Advisors. As a reminder, all participants' lines will be in listen only mode, and there will be an opportunity for you to ask question after the presentation concludes. Please note that this conference is being recorded. I now hand over the conference to miss Saloni from Go India Advisors. Thank you, and over to you, ma'am. Good afternoon, everybody, and welcome to H. G. Infra Engineering Limited earnings call to the quarter two and first half of FY twenty seven operational and financial performance hosted by Go India Advisors.

0:49 We have on call Mr. Haremra Singh, Chairman and Managing Director Mr. Rickard Jain, CFO. We must remind you that the discussion on today's call may include certain forward looking statements and must be therefore moved in conjunction with the risk that the company faces. We 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 the Q and A. Thank you, and over to you, sir. Thank you, Saloni. Good evening to everyone. Let me begin by wishing you and your families a very happy Diwali and a prosperous New Year end. May the coming somewhat bring happiness, success and prosperity to all. India is progressing towards its vision of becoming seven a economy by 2030 and USD 30,000,000,000,000 economy by 2047, and thus infrastructure development will play a very critical role in achieving these ambitious target.

1:49 With sustained government focus on increasing investment by both public and private sectors, the government is witnessing the country is witnessing significant opportunities across roads, rail, power and urban infrastructure. At H. G. Infra, we believe infrastructure development is not just about building physical assets. It is about connecting people, enabling businesses and creating opportunities for economic growth. With our presence across 14 states and capabilities spanning roads, rails, metro, renewables and emerging infrastructure segments, we continue to strengthen our position as a diversified infrastructure company. Let me briefly touch upon the key sector developments and opportunities. Roads and highways remain to be our core business segment, supported by government sustained focus on highway expansion, improved connectivity and infrastructure development under National Highway Vision 2047.

2:42 We expect this segment to continue offering meaningful bidding and order inflow opportunities. The government continues to work on the rail modernization, capacity expansion and metro connectivity is creating significant opportunities for us. We are strategically strengthening our presence in this segment through our ongoing rail and metro projects and looking into many opportunities as a pipeline. Regarding renewables and green energy, with India's green energy transition, this is opening new avenues beyond solar generation, particularly in transmission infrastructure and energy storage. We see significant long term opportunities in transmission and distribution as well as BES, which are expected to play an important role in strengthening the countries in power infrastructure. Overall, we remain confident about the long term growth story and the opportunities emerging across our focus segments.

3:35 Our strategy is to leverage our execution capabilities, diversify our business portfolio and pursue quality projects while maintaining financial discipline and operational efficiency. Let me begin with a glimpse of our operational highlights. As of September 26, the company's order book stood at INR 13,685 crores, comprising INR 8,792 crores from roads and highways, INR 2,883 crores from rails and metro, INR 710 crores from renewable projects, including BEST and INR 1,400 crore from transportation and distribution. The segment wise roadhighway contributes like 64% and Railways twenty four twenty one, remaining 15 is from renewables and transmission projects. And the update on the EPC project. As of now, the Ganga Expressway and the UER has been completed and the completion certificate or UER with the platform 02/20/2025 being received on 09/23/2026.

4:32 And very recently, we have received the completion certificate for Gangai Expressway as well. The Jampshakur elevated road project is progressing well with 70.82% of the progress. The Neenmuga Tunkur project has achieved 73.64% completion and is progressing towards timely completion and likely to be finished by March 27. The DLS project is at least staged with 6% completion only because of the land related constraint. The progress is expected to improve in the coming months. The Pune Sherwood projects awarded by Wells Fargo at a cost of INR 3,931 crore is currently in a mobilization stage with work is expected to pick from quarter three for 'twenty seven onwards once we will we are getting the appointed date, which is likely to be there within a month. Regarding the HAM projects, the Kandalangur project has achieved 99% completion, and the company has already applied the provision completion certificate, which is expected to be there any time, and the COD is targeted in quarter four 'twenty seven.

5:29 As informed in the previous quarter, the provision completion certificate for Dhyper Mishakapatnam corridors, ODY6 and AP1 have been received and also Kamal Devra Poli Packages one and two already we have received last year. With the COD of these projects is expected in quarter three and quarter four after FY 'twenty seven. The Tirupati Chanda Hem project has achieved 71.8% completion and is progressing well with a target to complete by thirty first March 'twenty seven. Varanasi Kolkata Package 13 has achieved 47% financial progress, and Pakistan has reached 18.6% completion. Kosi Parikrama Package six, Ayodhya has achieved 42.4% completion and is progressing as planned. The Narol Surge project has achieved 54.8% completion and remains on track for timely completion.

6:21 For the Govingar Tangi Capital Ring road projects of Orissa, that is back to history, the company has signed the contract agreement on 04/24/2026. The land acquisition is at an advanced stage, and the appointed date is expected anytime within a month. Turning into the progress of Railroad projects, the DMRC Metro project has been 1% completed and just handover process is going on. The Belasvur Himachal Railroad project has achieved 98.3% completion and started for completion in quarter three FY 'twenty seven. The Kanpur Railway Station project has achieved 58.85% completion, though there has been certain delays because of the blocks not available. So the company has applied for an extension of time, which has been approved in principle for up to December 27.

7:08 The Dulai Nardana Railway project has achieved 57.6% completion, and the company has applied for the extension of time in this project also because there's almost 11 kilometer land is not available as of now. The Geha Soondaga project and Karanigarh project have achieved 56.267.2% completion. And there's non availability of work front also in these projects, the company has requested extension on both this project. The New Delhi Rail Station project initially faced delay due to land clearances. Now it has gradually has picked up with completion is reaching at 18.36%. For Thane Metro project, the appointed date has been declared as 01/11/2026. However, this project is facing challenges related to land availability and local social issues also socioeconomic issues. So the authority is working aggressively to resolve these issues.

7:56 The Anupur and Merzapur thermal projects are currently in the mobilization phase with 2.431% completion, respectively. Update on solar project has been as of 09/30/2026, the company's solar project reached approximately 96 completion, while heavy monsoon, transmission line, land acquisition, local disruption has caused execution delays, but these hurdles are now being actively resolved, and the company is deploying necessary resources to meet revised contractual time lines over the next to be completed in the next few months only. Financially, 89 of the required project debt is sanctioned and remaining INR $2.15 plus crore of balances slated for release in quarter three and quarter four FY 'twenty seven following the planned commissioning.

8:44 Operationally, the company invoiced around INR 80 crores in this financial year from 141 active plants and is targeting INR $2.50 crore plus turnover annual turnover once all the plants are commissioned. Regarding the BEST project, the company has already executed a binding agreement with GUNL and NUVN for three BEST projects. There's around fourteen seventy megawatt hour. Procurement of long lead items in place, including BEST and PCS, so progress with the delivery expected by January 27. Civil works at Banas Gata and Dulera are approximately at 8060% completed, respectively, with the major material already received. For Chernania, land related deformities and design activities are progressing and in principle, bank sanction has been received. So these three projects are expected to generate annual revenue of approximately INR $2.25 crores upon commissioning.

9:35 So we are expecting that these two projects would be commissioned by March and followed by Chironiya somewhere in June 27. So regarding the power transmission project, the company is advancing its power transmission portfolio across Ori, South Pradesh and Jharkhand, where the progress across regulatory approval, engineering procurement and on ground execution has started. TSA has been executed for all three projects at Angle, Jhurisa, part of IIT Madras already has been received and the foundation work is progressing and the tower erection is going on very smoothly. At Jamshedpur Jatun, route alignment has been completed. And with the land acquisition underway also in Mirzapur, Uttar Pradesh, land has been identified, the lease agreement with the concerned authority is under execution. The engineering and procurement activities are progressing across all these projects. And for Angul, we have received the financial project and for other two projects, financial project is target to be achieving coming later.

10:31 This is an update regarding five new hemp assets, which have been monetized. So during quarter two, company has successfully transferred 51% of its shareholding in Odifier, receiving partial consideration of INR 103 crores. The remaining holdback amounts are expected to be received during quarter three and quarter four of FY 'twenty seven, subject to achievement of respective commercial COD and completion of certain purchase items. In quarter two FY 'twenty seven, the company has also received an amount of 92.3 crore against partial release of holdback in all four earlier assets. Similarly, the company has received a total amount of INR 857.46 crore till September 26. Out of the total consideration, the balance consideration is expected to be received in quarter three and quarter four and subject to final COD and completion of relevant conditions.

11:18 With respect to Fifth Hand assets, Ripur Vijayakopatnam AP1, the company has already received the NOC from NHINFRA and and expect to complete the equity transfer of AP1 projects in quarter two FY 'twenty seven. Regarding equity requirements of all projects, the total equity requirements for all HAM transmission, BEST and solar is around INR 3,050 crore. And as of September 26, INR $18.46 crore has been infused in these projects. The remaining equity will be infused in later half of this year and FY 'twenty eight and FY 'twenty seven. Moving on to the financial highlights of quarter two and first half of this year. At standalone, revenue has reached INR $8.83 crores with an EBITDA of INR 105 crore and an EBITDA margin of 11.9% with the PAT of quarter two at INR 32 crore at a margin of 3.6% compared to INR 67 crore at a margin of 5.8% in quarter two FY 'twenty six.

12:15 Revenue for first half FY 'twenty seven reached INR $17.90 crore with an EBITDA of INR 182 crore and an EBITDA margin of 10.2%. And PAT for the first half FY 'twenty seven stood at INR 60 crore with a PAT margin of 3.4% compared to INR 193 crore and a margin of 6.7% in first half FY 'twenty six. On a stand alone basis, our gross debt stands at INR $15.95 crore. This comprises INR $7.14 crores of working capital debt, INR 400 crores of NCD and INR $4.82 crores of term loans and current maturities, along with trade limits and other means of debt. With our expected collection from receivable monetization proceeds, we are targeting to close our standard debt at INR 900 crore by end of this year. Now regarding the consolidation financial revenue of quarter two FY 'twenty seven, which is which reached to INR $9.74 crore with an EBITDA of INR $2.50 crores and EBITDA margin of 25.6%.

13:09 And PAT for FY quarter two FY 'twenty seven stood at INR 80 crore with a PAT margin of 8.2% compared to INR 52 crore with a margin of 5.7% in quarter two FY 'twenty six. The twenty four first half FY 'twenty seven reached INR 2,074 crore with an EBITDA of INR $5.53 crore at an EBITDA margin of 26.7%. PAT for first half FY 'twenty seven stood at INR 35 crore with a PAT margin of 1.7% as compared to INR 151 crore at a margin of 6.3% in first half FY 'twenty six. As we are targeting an order inflow of INR 10,000 to 11,000 crore FY 'twenty seven with approximately INR 5,500 crore secured up to quarter two FY 'twenty seven, our growth prospects remain strong across roads, rails, metro and power transmission supported by upcoming infrastructure investment and the government initiatives.

13:59 We will continue to focus on high quality projects, disciplined bidding and timely execution while expanding our presence in emerging infrastructure segment. With a diversified project pipeline and the prudent financial management, we are well positioned to drive sustainable growth and deliver long term value to our stakeholders. I will now hand over our call to our IR adviser and request them to open the floor for a Q and A session. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

14:54 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of from GM Financial. Please proceed with your question. Yeah. On asset monetization, so we have already monitored 100% stake in four assets. So initially, we had mentioned that $13.84 is the equity value. So roughly, the gain would be something around $5.30 crores because the investment is around $8.50 odd crores. So what could be the tax impact on it, and when will we receive that amount in the p and l? Because we're not seeing any major accruals in the on the P and L side in stand alone accounts till now.

15:50 Basically, as we have accounted in last two quarters, we have seen that these are the support projects which we already have monetized. So there is not a gain into equity because the net worth of all those four assets. So at least in '45 and '6, that we have incurred significant loss in that network. So the collection is almost INR $5.50 crores of collection is yet to happen out of the four projects and one project which is yet to be monetized, like AP1. So there is INR $5.50 crores of collection is yet to be there, which is we are expecting in quarter three and quarter four. And once that collection happens, then what would be the gain which we're booking in the stand alone accounts? The stand alone would be around INR 70 odd crores, which is likely to be there in quarter three or rather in quarter four.

16:42 Only 70 crores of gain. Correct. So because the consolidation... The the gain in in consolidation, which as per the network number. So if you see the network is actually was having that different number and the collection or the amount of consideration. So I can refer you to... In detail with our finance team, so they will tell you the entire details. Okay. Okay. So secondly, in terms of the revenue guidance, so what would be the revenue guidance and margin guidance for FY twenty seven? And can you throw some light on how the execution is going on in Pune Shiro? And what are our revenue targets for the same in this and next year?

17:29 So as of now, as of here, these are the two big sized projects. One is Pune Sherwood and Urisa, the CRR project. And say, one of the transmission as well as the Mirzabar project. So these are all 6,000 crores of project where the reported date is likely to be there within a month max, mid of December. So we are expecting in quarter four, all the projects would be there with that revenue and the mobilization. So already has been done in all these projects. So we are expecting to be roughly around INR 6,000 odd crores by end of this year, if you see. And as well as the margin front, there is a significant now there is a considerable significance where we are about 11% because of the few projects incurred huge losses.

18:14 And now we would be in a range of 13% to 14% of EBITDA for quarter three and quarter four and subsequent to this. Because first half has been only 1,800 crores of revenue. So in second half, we recorded INR 4,200, which is 50% higher than the last year second half. So we are very confident on that front. So basically, all these projects where they appointed is immediately expected, being expected. So we any of this scenario, would be doing some INR 3,000 INR 400 crores to INR 3,000 crores in quarter four. So this is giving that this is the positive of the immense, but confidently, we are confident enough that we would be able to do that part because the mobilization has been done in all such projects.

19:03 Okay. Okay. Thank you, sir. Those are my questions. Thank you. The next question is from the line of from Dollar Capital. Please proceed with your question. Hi, sir. Thank you. Couple of questions. Before that, just one clarification. This order book of 13,700 odd crores, $6.85 odd crores. So does the unbilled revenue... Have we have we removed from this? So I just wanted to say when this will be executed, we will be booking this entire as a revenue or this minus unbilled revenue?

19:54 I think the contract has said it is the execution... Was a part of execution. So contract has said our unbilled revenue is already being executed. So as far as physically progress is concerned, the financial is okay. There's only collection which is going to be there. So it would be, again, once you build them, one way is done, then the collection would be there. So it's already been executed. So this is a net of 13,800 odd crores, net of total projects, which are yet to be executed as a balanced part. Okay. So this does not include the unbilled revenue. So to be to put it in a simple word, whenever we will be executing, let's assume, we will be executing this entirely in next two years, So this number will translate into the revenue, the exact number.

20:41 Correct. Okay. Got it. Sir, now coming back to the... What the web has asked so further or to dwell down on that. So if you can specify the segment wise because the number that we are looking at, 4,200 crore kind of a revenue, and correct me if I heard wrong, we are looking at INR 3,000 to INR 3,500 crore revenue in the fourth quarter. And if that's the case, then in the third quarter, we are looking at kind of a similar $809,100 crore kind of a revenue. So just to dwell further how each segment wise, if you can specify in the second half how much revenue we are looking at in the HAM road EPC and there, obviously, the Pune sir...

21:28 Sirpur is the major one. Then railway, solar, BES transmission, each segment wise, if you can specify, would give a much more confidence that we can we can achieve this kind of revenue. So of course, I think as far as the battery is concerned, we beat those projects, they are likely to be commissioned. So with that, we are assuming that $3.50 crores of this would be there in the second half of this year, $3.50 crores and around INR 300 crores of transmission revenue, which is likely to be there. So this is around INR $3.40 crores plus INR 300 crores of transmission. And as far as rail metro is concerned, we are expecting that we will be touching roughly around INR 1,400 odd crores of top line in this half of this year, if that includes New Delhi, RBNL, balanced portion, which is yet to be built as well as Gaya project, Arongabad, Dule, Hane Metro even just started, where a small portion has been just picked up. So these and even Kalpura acquisition.

22:26 So these are for about 1,400. So look, put together, it's around INR 2,000 crores. Balance is going to be from all six HAMs. So five HAMs are aggressively, say, pushing we are at a very advanced stage line, JARGEN package INR 13 crores, major contribution would be coming from these two projects. This is roughly around INR 700 odd crores to be executed in these two projects, Chart 10, Package ten and thirteen. There is a U. S. Proposal which would be executed in that. And even other projects like Narol and Ayodhya and Dirubhati. So these are the three projects for HAM, which again would be contributing around 600 crore in this particular phase of two quarters. Pune, we are expecting to be there around INR 600 crore, which is likely to be there, which we are going to see that already mobilization being done, utility shifting is at advanced stage.

23:17 So this project is going to contribute at least INR 600 crore for this half of this year. So put together, along with certain projects like Tumkur is there and Chamshepur there, the EPC project and some small portion is in balance of HAM project, which are being monetized. Even in Kerala, a small portion is banner. So there are INR 200 crores. So it is likely that we would be around, let's say, doing around INR 4,200 crores of project likewise. Got it. Got it. So and then as you said that in the second half, we will be looking at 13, 14% kind of a margin. And in for... Going forward also, eight, we will be seeing the similar 13, 14% kind of a margin. And and in terms of the order inflow, particularly, so how much we have bidded, and there also just wanted a a clarity in terms of particularly on the roadside. Obviously, we will be looking at that. So recently, the the UP...

24:21 Many, many projects got canceled, the tender which were there as part of tenders. So just wanted to understand how much... How many projects across the different segments that we have bidded, where bid is yet to open and how much more we are likely to to bid so that we can get an idea that whatever we are looking at, $56,000 crore more inflow in this second half. So there are other projects also, if you are saying that apart from NHA, HAM or AVVPC projects, they're not meant they're not many projects, INR 7,000 crore of project, which we already have bidded and the results are yet committed. Railway around INR 5,000 crores of projects. So if we are seeing that how we are confident that we would be at least looking at INR 5,000 to 6,000 crores of new models to be were being awarded for the five months. So looking into state like MSRDC has already again invited those projects which were canceled. So the invitation is there. And IT has already been floated.

25:30 Again, the state government, Rajasthan government is again to RSRDC is going to bid for their two expressway in the next four, five months. NHA is having this pipeline, which is giving us the confidence that even the rail metro, like in metro, we have already have bidded two projects, big sized INR 1,300 crores in Jaipur Metro and one in Delhi Metro. And that one metro is having few big sized projects like INR 7,000 crore of project four, projects are there. So this looks a mix of opportunity where we are hopefully and transmission also, but we are quite hopeful that we would be able to just add this number. Okay. So similar kind of INR 8,010 thousand crores plus kind of an inflow even, let's say, if if we... Maybe a a one or two months delay, if it it would be there by by March, maybe April, May.

26:19 So similar broadly inflow in the FY twenty eight also, one can look at so that what previously we are looking at in terms of the INR 7,000 crore kind of a revenue in FY 'twenty eight can be achieved? It's quite possible. Okay. Okay. Got it, sir. I will come back in queue. Thank you, and all the best. Thank you. Thank you. Ladies and gentlemen, to ask a question, please press star and one now. Thank you. The next question is from the line of Harshal Sharma from AS Advisor. Please proceed with your question. Hello. Hi, sir. Sir, can you throw some light on what would be the guidance for the fiscal and FY 'twenty eight?

27:13 As we are discussing that we are targeting that at least with this last one year and this year, we are not having that much of revenue because of slow awarding appoint to get delay, but quite hopeful that we would be doing around INR 7,000 crores in 'twenty eight. So by when can we see an uptick in the order inflow? So the orders are already there. So only a matter of, say, the time which has been there, the land acquisition and the DTR, these are all at NHA and ministry level. So we are seeing that the traction is there, but we are quite hopeful in this year around 600 odd kilometers likely they are suggesting they are just targeting to be awarded.

28:02 Another project like MSRDC, UPDA and even in Raisan State, so these are the state expressways for roads. For rails, I think some big sized projects already that are there. So these are all 1,000 to INR 5,000 crores of projects with trains and new lines like Metro also. So the pipeline is a mix of in all these sectors, it's a mixed pipeline, so which we are quite hopeful that we would be able to get. Alright. Thank you. That's it from my side. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

28:49 The next question is from the line of Deepak from Swan Investments. Please proceed with your question. Yeah. Thank you for the opportunity, sir. So just wanted to check it out on this sharp increase in the commodity pricing. If you can throw some light on our energy vertical, one on the BSS, and secondly, a project which we have got from the month of applied loan loss, especially last week. How should we see the margin profile in the project? And in the battery, are these changing... This product prices or lithium prices? Is it a completely pass through?

29:34 Does it have a completely pass through? How should we look into all these assets? So as far as highway is concerned, definitely, as far as we have seen the commodity, but being protected by the real time price escalation for bitumen and crude PUL. For rail projects, there has been a hit, and we have taken that hit is going to be there, which we are seeing that the not a big number is going to be there because we are not having many rail projects, which are having OHE and SMT kind of change. But in civil work, it is not that impacted. Steel and cement and aggregate is not that big impact is there. For bitumen, it is there. For transmission, BEST has been impacted. But then again, we have taken that earlier margins in BEST was quite high. Now it has been around 12%, which has been now. Earlier, was supposed to be 20% plus because of this dollar and this currency as well as battery prices.

30:35 But that has been covered and taken into consideration as of now. The transmission with aluminum and copper is playing where the commodity prices have gone a bit 30% to 40% plus at the number which we have bidded. But then we have taken into our bid consideration the price escalation, which have already been covered in our budget. So we are not likely to be hit severely into these commodity increase. The next question is from the line of Rahul Putra from.

31:23 Please proceed with your question. Yeah. Hi, sir. So I just wanted to understand, you know, I am seeing, you know, interest income is coming up on account of contract modification. So can you just give me the color, like what was it about? Interest income is basically there are a few projects of Maharashtra, where we receive INR 18 odd crores that hasn't booked into other income. So, sir, is there any revenue apart from the interest income, you know, which flows into our top line? No. No. Or or due to this contract modification? No. No. Not yet. Okay. And second, sir, I see in this stuff, you know, we have invested around $3.50 crores in contract assets.

32:12 So... And it has been seen, you know, over the period of time, our contract asset is bulking up. So what what is the reason for that, sir? You know, is there any, you know, slowness in terms of, you know, billing of our, you know, getting the, you know, approval for our billings? Or or... And, you know, which segment is causing, you know, for for the contract assets to bulking up? So basically, we have seen that the way over the devotors are there... Were there. So we have seen a significant reduction. So that was at March and now number where the collection is up... Is quite now at a significant pace. But the contract has said significant amount is being struck in railways because the milestones and the commissioning because in that particular those particular projects, there are certain conditions that around 10% of the total amount would be only paid once you commission the entire project and hand over those projects. So now this is a significant amount, it's around INR $5.80 plus crores into railways.

33:11 And others do have mix of it, but the hand project is again having a significant number, where these projects, which we already have monetized in Kandal, including Kandal, Hindu even. So they are the projects where the certain CUS variation items and even in Adani project, Ganga expresses, there's a variation item, which is around INR 180 odd crore from EBITDA already, CUS sanction has been there. But then there is certain amount of variation, which is yet to be approved from Arani. So there are mix of these six HAM projects, there's around INR 700 odd crore, which we are likely to be collected in quarter three and quarter four. So this contract asset, which has now been increased, Bharat Chukha, significantly, it has gone high to 2,100 crores, would be roughly in the range of about, say, 100 crores rather INR 200 crores to INR 1,500 crores by March end. So INR 800 crores of correction is likely.

34:00 Okay. Got it. Thanks. That's from my side. Thank you. The next question is from the line of from Dollar Capital. Please proceed with your question. Sir, first, a couple of balance sheet data points. So this unbilled revenue would be the entire contract as set up $21.65 crores would be the unbilled revenue as on September? Yes. Yes. Okay. Mobilization, retention money, HAM, solar, Ganga, railway, BS letters, if you can specify?

34:50 So the mobilization is around INR $50.02 crore INR $5.15 crore. If you are talking about betas, including retention. INR $8.40 crores is a debtor amount and INR $20.03 crores is retention for all this asset part. Stock is around INR $4.95 crore. And I think the advances to supply has gone very high because we have booked all these material and there is a GST with balance with authority, is INR $2.88 crore. Cash bank balance is around INR 163 crore. The borrowings already we have concerned, so that is and the trade payables has significantly dropped from 1,633 crores, and now it is 1,188 crores.

35:37 Yeah. Sir, what would be the HAM data, solar data, railway data, BESS data? So roughly, as I explained about the HAM, the contract asset portfolio, now in HAM, again, at SPV Solar is about INR $2.36 crores, transmission is around INR 70 crores based on transmission. HAM is, again, it's a significant INR 500 crore around in HAM. Rail is very small portion. Certain amount is received from Adani INR 113 crore. Okay. Okay. Got it. And this quarter, the other income, you highlighted that it is for Maharashtra that we have got INR 18 crore.

36:22 So from Q3 onwards, the other income will come back to the normal run rate of $3.04 crore? No. So we are having certain consolation claims where we like TV might... We may get these, but not a very significant amount would be this. Okay. Okay. And in terms of the CapEx of INR 66 crore we have done in one. So in second half, how much more? And for next year, how one can look at the CapEx? The CapEx the major CapEx is all Pune projects where we are doing this launchers and other not very big into investment into the equipment, but these are the shutters, etcetera, which are roughly would be INR 50 odd crores, which by the balance part of the year.

37:12 And next year would be the similar INR 100 crores, 120 crores kind of CapEx? Yes. Yes, yes. Okay. Okay. And sir, this Karnal or Ring Road also in terms of monetization, this would also will be done by this March? And how much broadly one can look at in terms of the value, the similar kind of 1.5 times price to book that way one can look at? No. No. There's there's not likely to be by March because once we receive the PCC, then six months the cooling period, and we'll be applying for this monetization permission from NHA and banks. It's going to be at least eight to ten months from now. And although we have received the quotation, this offer from investors, but the number likely would be not that big in this project because of the price indexing.

38:08 But again, it's quite that within the two months, we are going to close we would be able to close this. Okay. Okay. So deal would be done in next two months, but in terms of the cash, said it would take eight to ten months to... Probably quarter two next year. Okay. Okay. And and the the five total that we have monetized, so out of INR $13.84 crore, we have received yet to be received is INR $5.50 odd crore that we will be receiving third and fourth quarter and plus the the AP one. So that amount will also be included in the five Including everyone, five fifty card. Okay. Including the AP one. Okay. Okay. Got it. And and, sir, just about the net date that from 1,600 odd crore, we are looking at 900 crore by this March.

38:59 So in terms of the finance cost, so now $50.51 crore this quarter. So how one can look at the finance costs for fourth quarter onwards? No doubt, I think that the finance cost is because it's a very surge in this debt. So by dropping it to that number, in quarter three and quarter four, roughly, we are expecting that 80 or INR 4 crores of finance cost would be there. Next year, the financial cost likely will be stabilized at INR 110 crores to INR 130 crores. Okay. Okay. Okay. Got it, sir. Thank you, and all the best. Thanks. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

39:48 The next question is from the line of Rahul from. Please proceed with your question. Thanks for for giving opportunity again. So this contact library, you know, with which we see is increased by $2.73 crore. So can we so can we say that this is a mobilization advance that we received for the, you know, Pune Shiro project? Is it the right to understand that? Yes. It is $1.70 plus rupees from one of the project where we received some amount. Okay. Got it. Second, sir, you know, again, coming to the contract assets, you know, sir. So can we see this is the peak level and from here on, you know, it will reduce, you know, as in, you know, we execute, you know, further projects? Because what we see... What we are seeing is, you know, even after getting all the, you know, monetization process, you know, maybe even partially, Our debt levels are not coming out. I mean, it is getting blocked in the working capital.

40:44 So, you know, how should we see? You know, this is like a peak working capital that looking at and now from here on, you know, it should, you know, start coming down? So almost the plateau has been reached in last quarter only. Now significant drop is likely to be there, be it say, if you see the debt part, if you see the contract effect part, where the balance sheet is showing this number and then the realization by end of this year is going to be significantly reducing the debt because contract asset is likely to be reduced by almost INR 700 crores to INR 800 crores by year end. That would be in the similar range as we are now and creditors would be in the similar range as of now. Okay. Got it. And sir, just last question on the technical part. I believe we participated in all the packages of the link express of the UPDR.

41:36 But... So somehow, you know, technically, we got disqualified. So what was that reason, you know, for the technical disqualification? There was almost five to seven of our contractors who were disqualified or the... I think for a small technical reason, which probably all missed. Mhmm. Okay. Got it. So, sir, so, you know, are there any, you know, such technical challenges will be there in this MSRDC projects? Or, you know, now that, you know, they are being floated MSRDC project which were in... Which are invited now, that we have the same one. Qualification criteria from three years back when we are qualified for that. That is the same credit. So that just it is only RFP, not RFQ.

42:31 The next question is from the line of from GM Financial. Sir, when do we expect to receive appointment date for the capital region, Ring Road Package three? On November end of first week of December. So both for Pune Chidu and this project. For the revenue which we are seeing in Pune Chidu, it's roughly around INR 130 odd crores in the first half. It is mainly on because of utility shifting and additional work? Shifting and certain preoperative expenses, global expenses, which were also there while it is a BQ project, basically. So we have splitted that to enable getting the cash flows and billing. So that was a small amount, which was also there.

43:20 And you're targeting roughly INR 700 crores revenue for FY 'twenty seven from Poonage Road? Right, right. The next question is from the line of from AG Capital. Please proceed with your question. Hi. Thanks for the opportunity. I wanted to ask when can we see improvement in margins, and when can we see the margins level go to around 15% and above like it was in previous fiscal? Probably at the current scenario, it's not looks like because of the geopolitical commodity prices as well as the competition all across entire infrastructure, we are not very much confident that they are coming to one to two years is going to be there.

44:21 Okay. That's it from my side. Thanks. Thank you. Ladies and gentlemen, that was the last question from the participants. I would now like to hand over the conference to management for their closing comments. Thank you, and over to you, sir. Thank you for joining us today. We remain confident in our continued success and are here to address any further questions. Please feel free to reach to us and our IR adviser to India.

45:10 You. Thank you. On behalf of Go India advisers, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.