Ahluwalia Contracts (India) Limited (532811) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Ahluwalia Contracts Limited Q1 FY '21 Earnings Conference Call hosted by Asian Market Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amber Singhania from Asian Market Securities. Thank you, and over to you, sir.

Thank you, Steve. Good evening, everyone. On behalf of Asian Market Securities, I welcome you all for Q1 FY '21 Earnings Conference Call for Ahluwalia Contact Limited. We have with us today, Mr. Shobhit Uppal, Deputy Managing Director; Mr. Vikas Ahluwalia, Whole-time Director; Mr. Satbeer Singh, CFO; and Mr. Rohit Patni from Investor Relations representing the company. I now request Mr. Uppal to take us through the quarterly results and overall business outlook, and then we can start with the question-and-answer session. Over to you, sir.

Good evening, everybody. Thank you, Amber. Ahluwalia Contracts (India) Limited has announced the financial results for Q1 FY '21. During this quarter FY '21, the company has achieved a turnover of INR 249.85 crores and a PAT of INR 7.48 crores in comparison to a turnover of INR 404.02 crores and a PAT of INR 24.12 crores in Q1 FY '20. EPS of the company for Q1 FY '21 is INR 1.12 as compared to INR 3.6 in Q1 of FY '20. During Q1 FY '21, the company's EBITDA margin was 7.42% as compared to 11.78% and a PAT margin of 2.99% as compared to 5.97% in the corresponding period of the last year. Company has secured new financial -- new orders in this quarter to the tune of INR 290 crores. Net order book of the company as on June 30 was INR 7,262 crores and as on date, it is INR 7,452 crores. So we are open for questions now. Thank you.

[Operator Instructions] The first question is from the line of Mohit Kumar from IDFC Securities.

Congratulations on a good set of revenue numbers. My first question is, given the COVID situation and given the flip-flop happening across the country in terms of unlockdown -- given the lockdown and unlockdown, is there -- what kind of run rate we are looking at the entire, in the sense, for us for Q2 FY '20? And how do you think it will pan out in the next 6 to 9 months? And what is the kind of labor availability you are witnessing? Are you facing any difficulty in getting the labor and that's why that we may hamper the execution?

To answer, I'll start with your last question first because our productivity depends on labor. Yes, there are issues with labor, as all of us know. It has started going up. We had -- when we did the last call, I think we were at about 15% to 20%, now we are up to about 40%. But yes, the continuous flip-flop and the way corona is rising in states like Bihar and Bengal from where most of the labor comes makes the next quarter tough. What I foresee is that the pain that we are facing in terms of getting adequate labor will continue over the next 3 to 4 months also. Coming back to the guidance or projections, as I maintained in my last con call, we are not -- the situation is changing, continuously evolving. So we are not in a position to give any projection. All that I'd like to say is that we have done better than what we had felt. In the first quarter, I think we've done better than most of our peers. Also that is due to the fact that our team on the ground has been at the forefront, and they've done a very good job in terms of not letting COVID spread on our work sites. The protocols that the company has established have been successful, by and large, so -- which is yielding results in terms of our total revenue generated. This will continue to increase, but I am not in a position to give any sort of guidance for the next quarter, at least. Have I answered all your questions?

Yes, sir. Understood, sir. Sir, one more question I have, excuse me, sir. Has there been any section -- receivables in this quarter? Have you seen any payment -- people making -- government, especially making payments?

Yes, payments have been coming in. But obviously, the effect has been there in terms of -- there has been a slowdown there also. But again, it's better than what we expected. But going forward, in the next quarter, again, let me qualify that statement, states like Bihar and Bengal, we are already seeing a constriction as far as fund flow is concerned because the state governments there are cash trapped. But as -- our hope is that as the situation has improved in Delhi and Maharashtra, maybe in a month or a couple of months, the situation there will also improve, but it all depends on how well the incidence of COVID is controlled there.

The next question is from the line of Nitin Arora from Axis Mutual Fund.

As you always guide us on -- rightly onto how to look at things on a macro side as well as on the ground level. So I understand you said things are getting volatile in terms of -- especially states like Bihar and West Bengal, but is it more to do with the -- when you say the next quarter looks tough also with respect to execution, but if you look at directionally, on a blended level, do we still see a chance where acquisitions stopped completely, is what you're guiding? Or you're guiding it then, look, there are cases, but still 50% of the execution, we will be able to do it because 3, 4 months, we'll be able to gauge now how to really work it around on new sites and all. So just maybe your thoughts on that. And secondly...

Yes. So Nitin, as I mentioned last time around that the first 6 months of this financial year will be tough, and that is what is happening. So -- but the first quarter, I think, if I may say so, we've done better than our own expectations; and second quarter, the situation will improve further. That's what my feeling is, and work will not stop anywhere. Even now Bihar, Bengal, the state government has not stopped any construction activity. We are allowed to carry on work with labor, which is present at site. So I don't foresee work stopping anywhere. But yes, the fund flow is getting constricted because these state governments are using whatever funds they had for COVID-related activities, right? Their first concern is that. We saw that in Delhi also. We saw that in Maharashtra also. So it's a cycle. Delhi seems to have flattened the curve. My personal feeling is that Bihar and Bengal will also do that, but it will take a month to 2 months. So that is why due to fund constriction, there may be -- there will be, not maybe, there will be an impact on our productivity in these 2 states. But I don't see work stopping anywhere.

Got it. That's very helpful, sir. Sir, with respect to the receivable, where you said, the funds are getting trapped and as rightly you stated the reason. But generally for us, how has been Q1 in terms of working capital? And also, when we look at July and August, we are almost half of August now, has there been slowdown in payments or largely -- the working capital has remained largely the same, plus/minus here and there?

No. We are seeing a slowdown now, especially in these 2 states.

Fair enough. But does that -- so what's the working capital right now? I mean, as far as Q1 is concerned, in terms of number of days or if you can highlight on receivables and debt number, the gross debt and the net debt?

So there is, as things stand, I said, so there is an improvement. But August, as I said, overall, pan India, it's all right, there is an improvement. But we see -- we are seeing -- Bengal is affected badly.

Okay. Got it. I'll take the numbers offline. And sir, lastly, on the new project, which is -- which was the Central Vista, and we saw 3 large players getting qualified to bid for it. Can you elaborate a little on what's really happening on the ground level there? When we do see bidding and all? And just your last take on that.

So we had stayed away from that project. At some stage, I had mentioned to some of you that it's a project which is going to see a lot of political interference. So -- and it would have taken a lot in terms of bidding for that job also in terms of effort. So we took a conscious call not to bid for it because we did not want to get embroiled in projects like the Shapoorji got embroiled in ITPO and so on and so forth, and Nagarjuna got affected by the projects in Amaravati. So it was a conscious call. That's why we have no -- we've not really followed on what's happening on the ground on that project. I will not be able to comment.

The next question is from the line of Pavan Ginodia (sic) [ Varun Ginodia ] from AMBIT Capital.

Congratulations on a good set of results. It's Varun Ginodia, sir. So my question is on the revenue side, okay. So as you had highlighted, the labor availability in 1Q was very low. But despite that, you managed to show good execution in this quarter. So is there any one-off in this? Or any revenue you booked from previous quarter or this entire revenue is something which is work done in 1Q and booked in 1Q?

No one-off. It's all work done in Q1.

So despite labor availability constraint, which was only like about 20% to 30%, you still managed to show roughly about like 40%, 50% execution. So there is no one-off on this one?

Yes.

Okay. And second question is, is there any impairment in this quarter as well as seen in previous 4 quarters? Or this is a clean quarter without any impairments?

There is no impairment.

Yes. If by impairment you mean write-offs, yes, there are write-offs.

So can you tell me -- tell us the amount, what is for this quarter?

See, amount is about INR 5.5 crores.

And are we done with these? Or do you still expect them to accrue in coming quarters?

There will be. As I had mentioned last time around, the first 2 quarters of this year, we'll see further cleaning up of the balance sheet.

Maybe another quarter, there will be this number?

Yes.

And sir my last question. Other income, that has seen a sharp jump in this quarter. Any reason behind that? It has gone from like INR 3 crores to INR 7 crores. So what is dragging that?

That is around INR 3.5 crores. That has been written back of -- liabilities written back.

Liabilities written back. Okay.

We finalized some bills of some -- with some clients. The final billing has been done. And based on our final billing, we finalized liabilities of some of our vendors and subcontractors. So based on that, there is a write back of about INR 3 crores.

The next question is from the line of Shravan Shah from Dolat Capital.

Congrats on a good set of numbers. First, sir, just wanted a clarification. Actually, last time we said we are expecting EBITDA loss, and we are positive. We are happy that we posted a good result, but just wanted to understand at the same time, given the previous question was also last time we had mentioned that our execution is linked to the labor availability, and we were having 20%, 25%, but in terms of execution, we are at 60%. Now we are saying labor is 40% and still we are saying there is a issue at the execution of Bihar, this thing or whatever. So I am not able to understand in terms of what, as a management, we are trying to say? Because whatever we are trying to guide either on the positive or negative, it is significantly deferring. So just trying to understand where we are -- as an investor we are looking?

So Shravan, you know us. As a management, we are always conservative in our guidance, right? And that is what we are doing now. Secondly, the management, when the lock -- when COVID hit, the management took certain cost-cutting measures. As a result of those cost-cutting measures, we could ensure that the company remained in profit in this quarter, in spite of so many headwinds, primarily around labor and less productivity on sites. Even to increase the productivity on site, the management took certain measures. Some works were done offsite also, primarily on projects such as the precursor to the Central Vista that we are doing in Delhi. A lot of work is being done in factories, which we have taken at 4 locations offsite where structural steel is being manufactured. So a number of these steps, which I would not like to elaborate at this point in time, we took. And the result is that -- or what we are seeing is that our results are better what we had expected. There is no conflict in what we are saying for the future also, I am being very plain. There is -- I am calling it as I see it. There is problem on the ground in Bihar and Bengal. All of us read about it in the newspapers or see it on television. So COVID is rising there. Now whether it -- we saw it in Delhi and Maharashtra that it took about 1 month, 1.5 months, 2 months to flatten the curve. I am expecting that is the same that will happen in these states also. That is why I am saying after about 2 months, situation will get better. But these 2 months, we will see a bit of pain, especially in terms of cash flow in these states, which is bound to affect our productivity. That is all that I'm saying. If there is still further clarification which is required, please ask.

Yes. And sir, in terms of the -- just some more clarification that Central Vista, when we said we'll stay away, does that mean that going forward also, we will not bid for any of the strategies?

No, it doesn't mean that. We will evaluate the situation at that point in time. We stayed away today because the situation -- overall situation is not good, right? It's a large project, which is prone to political interference. As we have seen in ITPO, if the project does not move along smoothly, payments get held up a couple of months, the payment doesn't come in, it can upset the applecart of our company, right, more so when there is cash flow constriction on other projects also, that's why. When the second project comes, we will evaluate the situation on the ground. I'm not saying we will not be doing.

And do you expect the kind of relaxation in terms of the conditions because the criteria was INR 30 crores plus monthly execution in any project, and that may be the constraint for us. There are -- many of the companies are not able to -- eligible to bid for the financial level. So do you think that going forward in the coming packages there will be a relaxation on that front?

I can't comment on that. All that I can say is we are not very hungry at this point in time to be desperate to either get the criteria to follow-up with the department to change the criteria or -- so we will take it as it comes.

Okay. And sir, lastly, on balance sheet some numbers, sir, inventory, debtors, gross debt, and also, at the same time, order book breakup?

Sure. Inventory is around INR 206 crores. And unbilled revenue WIP we have INR 158 crores. And debtor in absolute terms, noncurrent assets and current assets, INR 696 crore and borrowing is INR 43.89 crores.

And creditors, sir?

Creditors is INR 500 crores.

And mobilization advance and retention money?

Retention money is INR 165 crores and mobilization is INR 226 crores.

And cash?

Cash is INR 175 crores.

And order book breakup, sir?

The order book is just commercial 7%; hospital 48%; infrastructure 5.76%; executional 25%; and residential 13%.

The next question is from the line of Vibhor Singhal from PhilipCapital.

Congrats on great execution on this quarter, Sir, just 2 questions from my side. As we stand at this point of time, sir, in middle of August, would you be able to give us a broad number as to what level of our execution capacity are we working on? Like are we looking at 50%, 70% or 80%? And also at this point of time, what would be the overall company-wide labor availability for us? I know it's going to vary from site to site, state to state, as you mentioned, but overall at the company level, would it be able to give us a number on the execution level going on and the labor availability?

About 45%. We are operating at about 45%. And if you want the labor availability in terms of numbers, it should be...

No, sir. I think percentage should be good.

Sorry, come again. Numbers -- yeah, percentage is also similar. It's about 40% to 45%.

40% to 45%. And given, sir, that, we are still seeing migration of labor coming back, not 100% of labor coming back. By what assessment by then do you think we could reach 100% execution level, given that monsoon is also there?

As I said, this quarter is -- the quarter that we are in now, we continue to struggle. We may in this quarter -- by the end of this quarter, we may have achieved about 60%. Beyond that, as I said, it really depends on how Bihar and Bengal pan out.

Sure, sir. I think it is still volatile, so completely understandable. Also sir, on the margin front, I think we had a very solid performance in this quarter despite the revenue decline. So would you be able to elaborate a little bit on this, sir, what's the [Foreign Language] some of the cost-saving measures that we did. And how will -- and what amount of them is actually permanent in nature? So I mean, there are -- and there will be some practices, which probably we will be able to carry forward also in coming quarters even when we get back to full execution. So some of the practices that might have helped you save the margins?

So broadly, we were extremely nimble to put it in terms of cutting our staff costs. So we -- our staff also cooperated. We reduced salaries. We also sent a few people on leave. Now as the work is picking up, we're getting all those people back. We have given back a certain portion of the salaries that we cut in the sense that if there was a X percentage, half of that we've reinstated or -- not reimbursed, but reinstated. So I'm not saying that whatever cuts we made were permanent in nature. Obviously, our goal is that before we end the year, we -- our salaries are back to normal and stocking is back to normal. But as I said, there are certain measures we've taken to do some work offsite, get certain members which are used in construction in lockdown conditions to the site. So some of these practices that we've started, we aim to continue with them. That would lead to a greater efficiency, as it has been shown in this quarter.

The next question is from the line of Ashish Shah from Centrum Broking.

Sir, I just wanted to -- I only just had one question. Just wanted to touch upon the status of some of our major projects. You did mention that West Bengal and Bihar continue to be a problem, but that's where some of our larger projects also are. So can we just talk about briefly in terms of our AIIMS project, for example, the hospital projects in Bihar, the 2 hospital projects, and the auditorium project in West Bengal, the Gardanibagh, Mohammadpur and...

So as I mentioned, all these projects work is happening on the ground. You specifically asked about, say, AIIMS in Kalyani. So today, we have about 1,000 people on the ground there working, right? So that project is fine. In fact, it's centrally funded. So even funding there doesn't seem to be a problem. As far as the auditorium project is concerned, between 1.5 months ago or 2 months ago, we had 50 people on site. Today, we have 600 people on site. So work has ramped up -- has been ramped up considerably. Gardanibagh, also, we have broken ground on the site. Work has started. Next to that, there is a Parivahan Parisar. There, in fact, we are nearly out of the foundations there. So labor in these 2 states is not that much of a problem because labor is local there. What is a problem, especially in Bengal, and will be a problem for the next couple of months is the cash flows, especially in projects funded by the state.

And auditorium project is funded by the state.

By the state, yes. So what we are doing, just to throw light for all of you, is on such projects, what we are doing is it's like a tight ropewalk. We are trying to keep our expenses low. We are trying to spend low -- or less, sorry, on further procurement. We are trying to make sure that inventories are utilized fully or we do just-in-time procurement. The supply chains are all right in these 2 states. We don't see a problem on the supply chain. So we're just trying to maximize -- get maximum returns on every penny that we spend.

Right. And some of the other projects, like Jammu, I know, it's a relatively newer project, but where are we in terms of starting that project? The Central Vista also, where are we in terms of the project and as well as the 2 projections in -- the private sector projects? So again, how they have shaped up over the last quarter? And what do you think about them in your August account?

In the order that you asked about the projects, Jammu, through the lockdown, the designing was happening for that project. We have -- we are now in a position -- we've set up our site infrastructure. We are ready to go there. But again, Jammu also lately, there have been incidents of some corona cases. So entry into the state is restricted. While we have some labor on the ground, but this is a bit of an impediment, which we feel should now ease out over the next 10 to 15 days. So in a -- we are ready to break ground there, which we should do by the end of this month. As far as the Central Vista project is concerned, again, through the lockdown, we were designing, we got our statutory approval, and we broke ground in end of June. We have already executed work worth about -- as on date, work worth about INR 45 crores there. So that project is well underway. As regards the -- which were the other 2 projects that you talked about?

Private sector, the commercial aspect...

Private sector, Poona, yes. So Pune, on the private sector, again, Pune, the epidemic is raging. But what -- we've set up quarantine facilities there, and we've set up testing facilities there with the help of a client. And we have managed in the last month to ramp up the labor from virtually 0 to about 300. So the work is happening there, and we think it will further improve. Our target is that we'll get another 100 people there in the next 15 to 20 days.

Right. And the payment, it is okay in this? There is no problem on the payment side?

So far, yes. It's better than most, let me put it that way. We don't really -- Brookfield has funded this project. So we don't foresee a problem in this project.

The next question is from the line of Prem Khurana from Anand Rathi.

So 2 questions. Sir, one was with -- eventually, I mean, when I look at our numbers for the quarter, it seems our net debt has gone up by almost around INR 65-odd crores. And again, I imagine this would be eventually because it would have supported some of your clients in this quarter of the payments -- and you would have continued to do the construction activity though the payments are yet to come to you and you've also spoke about this in your opening remarks where, again, you're seeing some delays. But do we have any number in mind in terms of, I mean, beyond which you would not want to extend, let's say, [indiscernible] don't get to have your numbers in place. Any thoughts on that, sir?

So Prem, I did mention that. It's like a tight ropewalk. So yes, we are trying to see especially on some projects where the payment -- especially in states like Bengal, where the payments we see are slowing down. So we are also slowing down or not really going all out to invest in future procurement and trying to maximize our productivity on the ground with the existing materials that we have. So yes, it's a situation which we are monitoring very, very carefully, and we are changing almost on a weekly basis our strategy because a lot of it also depends on what we are seeing or hearing from the client.

Okay. Any number in mind, essentially in terms of what could be the debt at the end of the year from current number? Eventually, when I look at the number, you gave us a number of INR 44-odd crores of gross debt and cash was around INR 175 crores odd?

At the moment, I don't think it will be prudent for me to comment. All that I'd like to say is that we are monitoring it very carefully. And we -- I think, I am reasonably I confident that we'll be able to keep it in check, more so because if you see 48% of our projects are health care projects. And those projects seem to be moving all right. So -- and then the Central Vista project, where I said in the last 2 months, we've already done work for about INR 45 crores. So the kind of order book that we have, we feel that we'll be able to keep our debt in check.

And sir, just one more from my side. So one was -- I mean, we need to understand the government -- wherever it is a government project, you've been given an extension of around 3 to 6 odd months. Also sir, I mean the labor is still at historic lows, especially given the COVID and if we are not able to get the labor in place and the idea is to get them back in place by -- in some time, but it's still a tricky situation to move to the same place to -- whether you will get to have that number in place or not. Given this, I mean, do you have any backup plan in place? I mean so that -- I mean, if it is 40%, 50% of labor and it's only 3 to 6 months' time of extension, I seriously doubt it will be possible for you to kind of deliver these projects in time? So any further extension do you think is possible?

It is bound to happen. See, 3 to 6 months, it's not that -- the government has come out with an advisory. Now every project or every department or nodal agency will actually evaluate the impact, which is there on the ground. And this EOT keeps -- quarter-on-quarter, the EOT -- a fresh EOT is submitted. So it's not that they've capped the delay that is to be given or sanctioned at 6 months.

The next question is from the line of Parvez Akhtar from Edelweiss.

Congratulations for a good set of numbers. I mean, especially on the cost spend, I think you have done really well this quarter. A couple of questions from my side. One, what are your thoughts about the bid pipeline in the future? I mean, we keep hearing about central government increasing it, especially on the health care side. So what are our thoughts towards that?

So Parvez, bid pipeline, the kind of -- the way the tenders are coming out, it's -- I don't think COVID has impacted negatively tenders or the tendering activity as far as the industry is concerned. But having said that, this is a very tricky situation. While works -- projects are being announced by states as well as the center, I think one has to be very careful and not bid indiscriminately because in the short term, cash flow will be an issue. So one has to pick up projects very diligently after doing once due diligence. Am I clear?

Sure. Sure, sir. And sir, just a couple of data specific questions. Sir, if you could get the geography wise and the client wise breakup of order book?

Geographically, Northern region is 51%; Eastern region 35%; West region is 12% and South is 0.69%. And government is 79.57% and private is 21%.

What was the CapEx that we did this quarter? I mean did we do any...

INR 3 crores.

[Operator Instructions] The next question is from the line of Pavan Ginodia (sic) [ Varun Ginodia ] from AMBIT Capital.

So sir, my question is, a few of your competitors booked onetime expenses related to getting labor back on site and few cost overruns that happened due to lockdown. Do your cost consist of any such one-off items in 1Q? Did you see any such one-off costs?

It's not a one-off cost, this is continuing. To get labor back, yes, we -- every construction entity is incurring expense. In some cases, we even have to -- we've booked plane tickets to get our labor on some sites. So this is a cost. And I think this will continue well into the next quarter also, Q2, maybe Q3 also.

And any cost overruns that you booked because of COVID-19, any cost severance due to the expenses?

I don't understand the cost overruns. What I'm trying to...

Because of that...

But whatever our expenses are being incurred, we are recognizing that. And we are also simultaneously claiming with the client whatever we had the claim that are claimable.

No. No. Let me clarify this. That's why I asked, what do you mean by cost overruns. COVID obviously has led to certain costs, which were not envisaged earlier. But the situation -- we are keeping the client intimated as far as those costs are concerned. Clients have told us -- no client has yet agreed to stay them. The client has said, let the situation normalize, we will sit down with you, most of the clients are saying this at the moment. So that is -- if that is what you mean by cost overruns.

But sir, they will reverse or not in future quarters, the certainty is still to come because you are still not sat down with the client?

Yes. It's not certain, yes.

Yes. They are there in this quarter and maybe there in next quarter as well. And as and when the claims get finalized, they might evolve in future quarters?

Yes. But today, they are in our costs. We are recognizing those costs.

Is it possible to quantify that number?

Not immediately. No. We can maybe share it with you offline.

Next question is from the line of Avinash Chenna from Spark Capital.

First one is on, sir, can you give us the state-wise order book just to understand how much of exposure we have towards West Bengal, Bihar as well as Delhi and other regions? So state-wise order book, can you provide?

Satbeer, would you have that?

Sir, we have for the [Technical Difficulty] that is INR 2,587 crores. But we have to segregate that for Bihar and Kolkata.

I think Rohit has.

Rohit would have it.

Rohit will give it. Yes, Rohit give it. Speak loudly please.

Yes. Bihar is 21%; Kalyani is 80%; Jammu is 17%, Jharkhand 1%, Maharashtra is 12%; West Bengal is 14%; UP is 3%; and Uttarakhand is 3%.

Okay. Sir, also, just wanted to -- sir, just understanding from the order inflow, what is the total value pending under that Central Vista scheme? Or what are the plan these 70-odd hospitals that were announced by Government of India across various states or private sector bidding, just what is the trend set here you can look at for the next 2 quarters on the ordering?

I do not think there will be any new Central Vista project in the next 2 quarters, that's my sense. I may be wrong. I think they will be busy getting the parliament building off the ground. So as far as the hospitals are concerned, over the next 2 quarters, the way I see it, big, small projects between center and state, it should be anywhere between INR 7,000 crores to INR 8,000 crores.

Okay. Okay. Do we have any geographic constraints or we are okay to bid across states that we are open for?

We have self-imposed constraints. We will only bid in the areas that we are present in. No new geographical locations to be opened.

Understand. Understand. Sir, what is the total CapEx requirement that we are looking at for FY '21?

CapEx FY '21.

INR 3 crores.

No, no, no. INR 3 crores will be the CapEx from this quarter. It will continue to remain muted. I don't think we will cross this number. So it will be, for the rest of the 3 quarters, it will be between INR 10 crores to INR 14 crores.

That's it. Okay. Sir, one last thing. For this first quarter of the revenue, can we understand like project wise, like which project was like contributed to the INR 250 crores of top line? Broadly, if you can give like 2, 3 projects?

We'll share those numbers with you offline. Rohit will come back to you.

We will share you numbers of project wise. We can share.

[Operator Instructions] The next question is from the line of Shravan Shah from Dolat Capital.

Sir, because of the Ind AS, we have restated last quarter, that is 1Q FY '20, revenue and EBITDA and all the line items numbers, particularly revenue by INR 87 crores. So just trying to understand, so for 1Q FY '20, it has increased. So -- but for the full year, it remains the same. So in the next remaining 3 quarters of FY '20, how it has been reduced? Is it possible to, once again, restate or release the 2Q, 3Q and 4Q of FY '20 P&L numbers?

That is basically -- I think so whatever the increase and decrease in the unbilled revenue, that are being recognized. Increase in WIP, that are being recognized in revenue. So if there would be an increase, that definitely would increase the revenue in absolute terms. So if there would be a decrease, then it would be a reduction in the absolute revenue.

So sir, to put it -- I am putting it differently. Next 3 quarters of FY '20, last year, the revenue, whatever we have released last time will be the same or will it going to change?

Let's say in last entire year, we have -- you have seen that around INR 42 crores impact was there. It means in the first quarter, this was INR 87 crores. It's been decreased in last 9 quarters approximately to INR 46 crores.

Sorry, sir, I still did not get.

See I'm telling you that last year, full year, you will see that INR 41 crores impact of increase in WIP. INR 1,884 crores includes INR 42 crores increase in WIP. And this quarter, you have seen, you are telling that's INR 404 crores, just include around 80 -- INR 60 crores, INR 70 crores, approximately increase in WIP, which means there would be 9 -- last 9 months, there would be decrease in WIP. Because the entire year INR 41 crores increase and INR 86 crores increase in this quarter, that means 9 months -- last 9 months, there is decrease of INR 46 crores -- INR 45 crores.

Yes. The financial year full revenue is INR 188 crores. And each quarter by quarter, last year, it's INR 404 crores. That means, next 9 months, total revenue is INR 1,480 crores.

True. So in which quarter the revenue will be reduced compared to whatever we have already published last time? So there will be a decline in revenue for the 3 quarters compared to whatever we have published.

Next 3 quarters, you can't say right now. That depends upon the execution of the work. If there could be increase in WIP, then definitely it would continue to...

Sir, I am asking for FY '21 -- not FY '21?

FY '20 INR 45 crores reduction.

That means total difference in the next 9 months is INR 20 crores decline because already total full year, the change in the WIP is INR 115 crores, already adjustment INR 80 crores here and INR 25 crores in next 9 months with INR 25 crores revenue increase, that I have already shown the numbers.

Okay. And sir, on the staff cost for the first quarter number, definitely, we have declined significantly. Just trying to understand from the -- when -- as we say by year-end, we will be reinstating all the salaries to the normal levels. But for next 2 quarters, can we assume the same run rate of INR 26 crores, INR 28 crore of salary -- staff costs?

This will increase a bit as the revenue also -- turnover also increases. As I said, I see even in this quarter, the turnover will increase further.

The next question is from the line of Ashish Shah from Centrum Broking.

Sir, we said that there is a INR 5.5 crores provision or a write-off impact in Q1. So on which project was this? And what is the quantum of such a possible provision, which is remaining, which could come in the second quarter or so, which you said that it could be possible?

So this is across quite a few projects where the bills had gained, but it's not 1 or 2 projects, this is 7 or 8 projects. Vijay is, I think, in the con call. Vijay, do you want to take this question? I don't think he is there. So this is 7 or 8 projects where we felt that the money is not likely to come in. So it's more -- as a thing, we're cleaning up our balance sheet. So we can share the list of those projects offline with you.

All right. Sir, more importantly, what I was asking also is that what is the identified amount, which we think is at risk, which could come maybe in Q2 or Q3, which we said -- indicated that we could see 1 or 2 more quarters of such write-offs? The amount that we have in mind.

I think it should be about INR 12 crores to INR 15 crores over the next 2 quarters.

And that should be about it?

Yes.

[Operator Instructions] The next question is from the line of Amber Singhania from Asian Market Securities.

Just a couple of questions from my side. One, as we have seen that this quarter due to various disruptions and labor issues have cropped in, on the light, a couple of other players in the space are also looking towards a structural concrete maker or the structural structure maker as such facilities outside the actual site. So are we also looking into similar kind of facilities or factories wherein we can make the structure outside and just bring in and fix it on the site because that is the way looks like the future of the industry in the longer term. So just wanted to get your thoughts on that from our perspective.

I did mention that as an answer to an earlier question that on the Central Vista project, we are already doing it across 4 locations. We are -- we have identified factories where we've sent material and our skeleton for the buildings that we're doing for this Central Vista project is being manufactured across 4 locations. And if you recollect, Amber, we had already invested in precast technology in our tie up a few years ago with a Russian company. So preengineered and precast, this is -- this technology we are well versed with. And we aim to utilize this in the projects to come, especially more so now post-COVID when the focus, as you rightly said, is going to be on offsite works. We are geared up actually.

Yes. I remember, sir, because we were the early entrants in this kind of technology long back. So just wanted to understand how much more focus or more strengthening we are doing in this space. That's why I asked this question on that account.

We are already doing it. In fact, preengineered, if you recollect the Patna Convention Center, that using 22,000 tonnes of structural steel; couple of stadiums that we did during Commonwealth Games had extensive structural steelwork. So we have the technology with us. We have the technical skills with us in terms of our staff. And precasting also the projects that, say, for instance, Jammu, in our design work, we are using that technology. We're designing structures that we use precast, preengineered components in that project.

Okay. And sir, secondly, on the bid pipeline, as you mentioned, that Central Vista as well as hospital projects of INR 7,000 crores to INR 8,000 crores, can you also give some color about any other stream where we are seeing a good pipeline coming in, which looks attractive from our perspective? Because I believe there must be a lot of pipeline, but it might not be very good in terms of payment restructure and all. But from our perspective, any other area or projects you would like to highlight on bid pipeline side?

At this point, no. All I'd like to say is that this is a very tricky time for the construction industry. So we are extremely vary, and we are lucky that we have a healthy order book. So as I said earlier, we are not very hungry, and we are -- actually, every bid that comes our way, we are -- both me and Vikas, we have a stringent due diligence process. In fact, we are letting go off some works, large works also, as a part after the due diligence is being done.

Okay. One more thing, sir, on the execution that you mentioned that around 45% is the average utilization or operating level we are having currently, whereas Bihar and West Bengal is having severely impact on that front. So would it be fair to assume that Bihar and West Bengal projects would be operating roughly around 10%, 20% of the total operation capacity, sir?

Bihar has operated at the same level up till now. Bengal has been a little slow. And going forward, Bengal is something which concerns us. Bihar, I feel, will continue to operate at this level. So to put up number, what I'm saying is this 45% in rest of the country will go up, it will go up to about 60%. Bihar will continue to operate at the same level; Bengal would be slow. That is because Bihar -- the center -- the government at the center and Bihar is the same, in the sense BJP is a coalition partner there. Bengal, the way we see it, I don't see center supporting them with funds. So that is why I see that over the next 2 months, Bengal would be sluggish.

Okay. And given this situation, sir, do we see any increase in cost in these projects because of the delays, which might happen, or it will be getting compensated by the respective clients as such?

It's too early to say. In the short term, yes, there will be an increase in costs.

Fine. And lastly, sir, just wanted your thoughts on Kota project? As a company and the management, what are we planning to do with this project? How are we seeing the medium to long-term outlook on this site?

So in Kota, we have invested, and we are doing fairly well. I mean, I don't want to comment, given the current pandemic and because this is a social place. So we are going forward. And even now, even we have just opened, we are signing 2 new stores there in Kota. Things will take a while until the situation gets better because Kota mall is a commercial property and a social gathering place moreover. So people are moving already. But like last month, we have got a revenue of about close to INR 1 crore. Total -- sorry, not revenue because savings from the mall has been close to INR 1 crore, which is not so bad, given the footfall has reduced tremendously. But then that is also because most of the stores were also doing online. They are operating the store, but they're selling online. So going forward, we are going to -- I mean, we are hoping things will get better.

Okay. Any plans to monetize this asset in the near future?

I can't comment on that currently. We are open to strategic alliances, but I can't say anything.

As there are no further questions, I now hand the conference over to Mr. Amber Singhania for closing comments.

Thank you, Steve. On behalf of Asian Market Securities, I would like to thank all the participants and the management for -- who are on this call. And a special thanks to the management for giving us the opportunity to host this call and share their views about the company and the outlook on the industry and the company. Thank you very much, everyone. Sir, would you like to add any closing remarks from your side?

No, that's fine. Just -- thank you so much, everybody. And God bless, stay safe.

Thank you so much.

Thank you. Ladies and gentlemen, on behalf of Asian Market Securities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.