Ashoka Buildcon Limited (ASHOKA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Ashoka Buildcon Q2 FY '21 Earnings Conference Call hosted by JM Financial Securities. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Subhadip Mitra from JM Financial. Thank you, and over to you, sir.

Thank you. Good afternoon, friends. On behalf of JM Financial, I welcome you all to Ashoka Buildcon's 2Q FY '21 Earnings call. We are joined today by the senior management of Ashoka Buildcon led by Mr. Satish Parakh, Managing Director; and Mr. Paresh Mehta, CFO. I would now like to hand over the call to Mr. Parakh for his opening comments, followed by Q&A session. Over to you, sir.

Thank you, Subhadip. Good afternoon, everyone. We welcome you all to our earnings conference call for quarter ended September 30, 2020. I have with me on call Paresh Mehta, our CFO. We hope that all of you continue to stay safe and healthy during this unprecedented times. To start with, I’ll initially brief you on the industry updates, followed by the company’s performance during the quarter gone by. As you all are aware, infrastructure is a foremost pillar for economic growth. The government is providing a massive push on infrastructure sector to gain faster economic revival. Despite locked down and prevailing situation, NHAI took various initiatives like ease of liquidity crunch and ensure cash flow to the developer. NHAI disbursed more than INR 15,000 crores to the developer. Additionally, steps such as monthly payments to the developer, loan moratorium amongst other, this has aided in boosting the developers’ sentiment. During the first half of the year, the NHAI has awarded the highest level of projects as compared to the average last 3 years. From April to September NHAI has awarded 40 projects covering 1,330 kilometers which is 1.6x higher than previous year. During the beginning of the year, NHAI has set a target of 4,500 kilometers financial year. NHAI is expected to exceed its target of awarding 4,500 kilometers of highway. Given the opportunity we are confident to get a few more projects in the current financial year. Now coming to the companies performances during the quarter. As shared with you earlier, in Q1 FY '21 operations were significantly impacted due to outbreak of COVID-19, ensured lockdown and Lack of availability of labor during this period. Our focus has been on resumption of business and Ramping up operations. With the opening of various geographies and improving labor availability, we have witnessed month-on-month improvement in our business operations and currently have achieved normalcy across all the projects. We’re happy to report that in Q2 FY '21, we were able to deliver better performance compared to the corresponding quarter last year. During the quarter, we have won 2 road projects worth INR 1,390 crores from NHAI under Bharatmala Pariyojana Package 1 in the state of Bihar on EPC basis. Project consists of 4 laning of Arrah-Pararia section and Pararia-Mohania, Purnia section. With this, total order book as on 30th September 2020 stand at INR 9,300 crores. The breakup of the order book is, road projects compromised around INR 7,570 crores, which is 81% of our total order book. Amongst road projects order book, HAM projects add to the work to the tune of INR 4,323 crores and EPC projects, which is INR 3,247 crores. Power T&D and others are around INR 905 crores, 10% of the order book, and railways have contributed INR 781 crores, which is around 8% of the total order book. And CGD business compromise around INR 44 crores. Moving on to the key developments. We are pleased to share that we have received appointment date of Kandi Ramsanpalle road project, and for the 2 HAM projects, Tumkur-Shivamogga 3 and 4, we expect to receive the appointed date in near term. We would like to inform you that Our Ranastalam Anandapuram HAM project, we have received September 24, 2020 as commercial operation date. The Ashoka Ranastalam Anandapuram Road is eligible for receipt of annuity payments from NHAI within 6 months from the date of achievement of COD Also the SPV has received provisioning completion certificate of 45.55 kilometers out of the project highway length of 47 kilometers. Further to our disclosure on the receipt of COD of Kharar Ludhiana HAM project, we would like to share that we have received first annuity payment of INR 66 crores on September 2020. That is all from my side. I would now request Paresh Mehta, to present the financial results of Q2 FY '21. Thank you.

Thank you, sir. Good afternoon, everyone. The result presentation and the press release for the quarter have been uploaded on the stock exchanges and on the company's website. I believe you all may have gone through the same. Now I will present the financial results for the quarter ended September 30, 2020. Starting with the consolidated results, the total income for Q2 FY '21 stood at INR 1,218 crores as compared to INR 1,053 crores in Q2 FY '20, registering a growth of 15.7% year-on-year. EBITDA stood at INR 421 crores in Q2 FY '21 with a margin of 34.6%, a growth of 9.7% year-on-year. Profit after tax is at INR 70 crores, with the PAT margin of INR 5.8 crores -- 5.8%. Now coming to the stand-alone numbers, the total income for Q2 FY '21 stood at INR 927 crores as compared to INR 862 crores in corresponding quarter last fiscal, registering a growth of 7.6% year-on-year. During Q2 FY '20, BOT division recorded a total revenue of INR 224 crores. EBITDA for the quarter was at INR 181 crores as compared to INR 162 crores in the corresponding quarter last year, clocking a growth of 11.5% year-on-year growth. EBITDA margins was at 19.5% for Q2 FY '21. The company reported profit after tax of INR 105 crores in Q2 FY '21, registering a growth of 44% year-on-year. Total consolidated debt as on 30th September 2020 is at INR 5,643 crores, of which project debt is INR 5,419 crores, including INR 150 crores NCDs at ACL level. The stand-alone debt is INR 224 crores, which comprises of INR 191 crores of equipment loan and INR 33 crores of working capital loans. With this, we now open the floor for question answers. Thank you.

[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.

Congratulation on a good quarter. Sir, given the momentum in the second quarter, how do you see H2 FY '21 revenues? Do we maintain the flat guidance? And any color on the FY '22 -- some kind of guidance if you can provide?

So as the general trend is, H2 of any EPC business is better than H1. So we believe that H2 will be better than H1. And on a yearly numbers, we will probably stick to our initial guidance of 1x of last year at least and maintain similar margins of around 13% minimum at EPC level -- without -- 12% to 13% EPC level without other incomes.

Okay. Understood, sir. And anything on FY '22, sir, FY '22?

FY '22 with the existing orders which we have, I think, we should grow by at least 15% to 20% and with new orders should come in. So it should not be a challenge at all. In fact, with the opportunity available, it could be substantially higher. It all depends on order intake. The present order intake is to be completed in 2 years' time. So I believe 20% increase could be easily built in.

And secondly, sir, is there any development on the -- or the deal which you're trying to do for the sale of the assets. Is there some guidance, new guidance which you're looking forward to new timelines?

So -- yes. So as we have started this process of Macquarie, trying to get an exit -- getting into an exit for -- from the portfolio. So the process was started almost initially last September. In the month of March, we really got derailed because of the COVID, but it got restarted in May. There are 3, 4 potential investors who are very keen and have given some nonbinding offers, and they're in the process of due diligence of the portfolio, their own due diligence, which is expected to get over and probably we could see a kind of a binding offer by December end and then get into documentation and closure of the exit of Macquarie.

Okay. Sir, last question, sir, there's a revised HAM document from the BOT. Is there any chance that of the clause rate become -- will apply retrospectively? Or you don't think there is any chance?

So presently, it appears -- definitely, this is for the new HAM which are coming up. We, along with our national Highway Federation, Builders Federation, they are pursuing for certain changes in the previous HAM concessions also. But as of date, it is uncertain the effort is on.

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

And congrats for a great set of numbers. Sir, 2 questions from my side. Just wanted to check, what should be the level of labor availability at this point of time? And how would we rate our execution in terms of percentage of pre-COVID level?

See, labor has now become completely normal. So it's available as earlier. So we have already reached at par pre-COVID level normalcies now, which is almost for of all projects.

Okay. And due to these new guidelines in terms of social distancing norms, and other precautions that we have to take because of COVID, is there some kind of, let’s say, a lower execution that we are able to manage with the same labor that you were able to do? Or will you believe it's now slowly coming back, that is also kind of coming back to the pre-COVID levels also?

Yes, this has also come to the pre-COVID level. Definitely, precautions are taken at all the project sites. This is meant to all the norms are followed. But we don’t see any -- the progress has come to the normal levels now. These people normally stay at one location and they stay together. So we are trying to see that outsiders are not mixed with these people.

Sure, sir, that’s good to hear. Also, sir basic what I also wanted to understand was that on the execution side, as we are looking at, are we -- what is the kind of payment status from the various government bodies? We have all heard that NHAI is actually making payments quite promptly but in terms of our other projects, which we have in our order book in the power and T&D segment and the railway segment. So whatever little execution that we are doing and also basically your state road projects. Basically, sir, how is the state government payments coming up? Are they kind of slow or they also kind of on time?

Yes, if you see, NHAI has been extremely prompt and they have been really accelerating payments. They have given certain relaxations also in the milestone payments and even hybrid annuity payments. So NHAI has been superb throughout even in difficult times. Railway, there has been no problem. They have been paying as usual. And if you come to the speeds, then we are doing work for UP state, which is Bundelkhand Expressway. There also, we have seen very prompt, so they are also highly prompt in paying. So there has been absolutely no trouble as far as these projects are concerned. Problems where we have faced is power project, particularly in Jharkhand there is a significant delay. In Bihar, there is -- they are paying for the running projects. But for the finalization of the project in releasing of retention money, there has been delays. So overall the power projects have suffered a bit because of payment, but otherwise road side, we have not faced any significant delay.

And sir, going ahead in the second half of the year, given that most of the states are right now fighting with the Central Government further dues and they all seem to be in a very dire fiscal state. Do you expect this payment situation to maybe worsen from here? Or do you believe the worse is behind us and it will only improve from there?

I think central government is trying to help out state governments. And we definitely see that the payments will start coming in for the situations where we have seen delay. So state -- central is helping states to revive and that definitely will improve the situation of payments.

Sure, sir. Sir, last question from my side. Paresh sir, the margins for the last 2 quarters have been quite strong for us. So were these margins higher because of especially in Q2 also any kind of an exceptional item which probably leads to these kind of margins and what is the sustainable kind of margins that we can assume going forward?

So margins are essentially higher. One is because of other incomes where interest income accruing from supporting of the ACL. That income is part of the revenue. Otherwise, also, in the execution side, projects which are coming to end like Rangasthalam and Khairatunda projects. Because their scope has been fully defined and now released from NHAI purpose the amounts have been qualified. So, there are contingencies in this quarter also and that’s the reason the margins look robust. Going forward, we believe that on a normal basis, the margins would be in the range of 12% to 13%, EBITDA margins on execution.

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

A couple of questions. Firstly, if you can give me the breakup between, building, railways, roads and RMC?

Yes. So for the quarter, the road turnover was around [ INR 425 crores ]. For our power business, power, rail and CGD around INR 70 -- around [ INR 80 crores ], the other business, which includes power, railway and city which is under one vertical. On the RMC, it is around INR 12 crores.

Sure. When I look at some of these projects in the order book, especially the TOT and EPC that we are doing and the Kim Vadodara, there seems to be some slowdown in the execution. I mean we are taking into account the COVID impact as well, but even in Q2 one sees that there’s not been any appreciable improvement. So is there any issue with these projects? Or it’s just a matter of time before we start seeing the numbers again?

I think this it's more of a...

Rainy season was the main concern in these 2 areas.

Sorry? I missed it, sir. It's rains?

Yes.

Okay. Okay. But -- so any number you'd like to throw for full year? I mean, how much would you expect to execute in the TOT project especially, and Kim Vadodara?

On the TOT probably we will most finish with 75% -- 85% of the balance work. And on the Kim probably another by the time, by March end we’ll be almost 85% completed, 85% to 90% completed.

Okay, sure. Lastly, if you can just talk a little bit about these two HAMs where you have received the PSU. So now what does the interest rate for these HAMs implied? Have they already been refinanced, lowered? Or there is something that we’ll do it in the coming quarters?

So because these HAM projects are in the range of 9% presently. And they are already the [indiscernible] project has been revised to 8.15% and in Rangasthalam because we just received the COD in the process of getting the interest rate revised from the existing lenders. But there is a good opportunity for these projects to be refinanced at a range, in the range of 7.5% to 8%.

Right. So essentially, the interest rate differential that we were talking about, that would be very narrow to small, right? Once the refinancing happens, there wouldn't be much of a difference left. If you get them financed at about, let's say, as you are saying 7.5% to 8%.

Yes. So I agree, at this moment, RBI rate would be 4.25% plus 3% spread, 7.25% so it will be on the same. But the RBI would be on a very substantially larger amount, it is always double the amount, because that is on the -- that will be on the annuity part, not double, almost 1.5x a month, 1.4 to 1.5x. And that will be later.

The next question is from the line of Parikshit Kandpal from HDFC Securities.

Congratulations on a great set of numbers. So referring to the discussion earlier, that the payments have been, NHAI has been paying promptly that even the state projects money has been coming. But when I look at your debtors, almost INR 1,300 crores given the size of the company on the [ sir 90 ] days kind of number. Sir, why is the -- so what explains this huge variation in the debtor?

So if you -- see, as far as roads are concerned, the debtors are more similar kind of quarter-on-quarter because execution is also similar. So whatever is being executed is being received, there’s no problem there. On the power definitely, a bit of accumulation is there because as we discussed, in the state of Jharkhand and Bihar there is a lag, which is creating a bit of pileup on the security deposit or the retention money. Otherwise, on a routine basis, that payments are being released but SDs does not seem to be going up. So if you see as of March and as of September, the number is Similar.

That is what I am asking the number is still, actually your revenue from the power and other payment is about INR 70 crores this quarter, so it’s not substantial and substantial revenue has been coming only from roads. So where the payment collection has been much better. So if you can help us give break up of this, like how much of the INR 1,300 crores, how much will be the -- pertaining to the power?

Power would be approximately INR 460 crores net position of debtors.

And railway?

Railway would be small, sir, approximately INR 50 crores.

So you're saying about INR 800, INR 900 crores will be from the roads?

So these are net of advances. So those net of advances would be [ INR 476 crores ], so this number we are talking about is the net of advances of INR 1,078 crores, which you are comparing to INR 1,400 I believe.

Yes, so INR1,300 crores debtors which I'm comparing this this. So on that amount, I wanted a breakup of power, roads and railways debtors.

So what you have to do is you have to compare it from a net of advances because then otherwise it would not show a proper number. So if you -- net of advance, the total number is INR 1,078 crores, of which INR 476 crores is on the roads, and power is around INR 459 crores, INR 50 crores is railway and then miscellaneous outstanding.

And within the power, sir what would be the aging like this INR 500 crores on which is reduced? So what could -- because the revenue even if I annualized, about INR 270 crores if I annualize for the full year, it will be about INR 280-odd crores. So it's more than a year. So how much would be the dues, which should be more than a year in power segment. And what is the plan of action kind of recovering these dues?

So what is happening is, see in this -- in power projects, the SD for -- between for some projects for 2 years to 5 years. So this SDs are not much of these overdue, these are due to be received in due course of time. They don’t have clause of time guarantee to be placed by the outstanding. So they will be received in time. If you ask me what are the sticky kind of power receivables would be to the tune of around INR 100-odd-crores, which are sticky and which will be received on INR 100 crores to INR 125 crores, which we are pursuing from states like Bihar and Jharkhand.

Okay. And second question was on the monetization part, so you said that 3 to 4 people are most serious and just gone into non-binding right now. And by December, there will be something which could be possibly announced. So just wanted to get your sense on this entire portfolio which is going, first of all, it covers both BOT and HAM. And also what will be the book value of the equity, which will be going towards the deal and which assets will be outside the deal?

So approximately, the book value would be to the tune of INR 2,700 crores. And what -- the monetization process is on the BOT projects, all the projects that people are looking at taking over. On the HAM projects, only the completed HAM projects they can immediately take over and for those we’ll get into understanding whenever the COD is achieved, we will be offering for sale at a particular structure, which will decide on what final offer comes from them.

And this INR 2,700 crores will be protected. I mean the deal, will be at least minimum to that extent of book value at least we will try to recover.

We need to see that. I mean, I really cannot comment on this at this point of time, but it should be recovered.

Okay. And just lastly, sir, on the platform investor, so this investor will get finalized, he will be a platform investor future [indiscernible] success, sir?

See, probably at this moment of time, we are running a deal for Macquarie exit but in case we are doing a 100% monetization of all the assets, probably it could be platform sale but we’ll not be partners in the platform.

Sir, we will be also exiting right in the Macquarie platform? Or is it like we are returning our share?

We would definitely look at the possibility then. When the prices are freezed, we will definitely look at that opportunity.

But as of now, it's only about SBI [indiscernible]. And this December which you are targeting?

It had started off as Macquarie sale but definitely the way the things are moving and the way the investors are interested in, they are interested 100% stake in projects. So it looks like that we'll end up -- we may end up being 100% sale.

Just lastly on the traffic, sir, has the traffic recovered? And what is the levels of traffic for the toll collection pre-COVID level compared to the pre-COVID level? Where are you in terms of collection efficiency?

If you see Q2 number, Q2 number the revenue is almost on the ACL portfolio is almost 1% up, which typically would give a overall of approximately 2.5%, 3% negative growth, which if you see for October, it has recovered substantially, October looks far better. It is almost 5% to 6% traffic growth is there. So traffic has recovered from September substantially, continues to be robust even in November.

[Operator Instructions] The next question is from the line of Jiten Rushi from Axis Capital.

And congrats on a good set of numbers. Sir, my question is related to Tumkur-Shivamogga package 4 and -- 3 and 4. So what have we done the FC and what has been the rate?

So for the package 3 and 4, the FC is in process, we expect this thing to happen in a month’s time. The bankers are already in place. I mean they are already at the final sanction level and this should Be at a rate of around 9%.

And sir, land status here?

Land status, TS-3 that is package 3 is substantially well. So there, we can get appointed date as soon as possible when first stage is over maybe first week of December. As far as TS4 is concerned, there is some facility left out just around 80-odd-percent. So taking some more time, so by February, we should get.

So that 80-odd is on 3G state, right, in both the cases?

Yes. Package 3, around 92% is available. So, 3H has been done, so package 3 there is absolutely no problem. Once we do the FC, we can start to work. We can get the appointed date and package 4, it’s only 55%. So this may take some time.

And sir, in the Power T&D order backlog, sir we can see increase in the order value for projects in Bihar and Uttar Pradesh. So is there any change in the change of scope or something like that? Because we don’t touch to any new orders?

Bihar we have received 2 small orders, around [ INR 160 crores, INR 165 crores ] and in UP also we have received one order, small order.

How much of the value sir, INR 60 crores, INR 65 crores probably?

Around INR 80-ish crores.

Okay. And sir, can you give us bookkeeping numbers now on the mobilization advances as on September unbilled revenue and retention money as on September? And what is the mobilization advances expected in the coming quarters in H2 probably and the fund base and non-fund base unit, please. Thank you.

Can we take it off-line? I don't have those kind of numbers project wise.

Okay. Not project wise. Total numbers, if you have any mobilization advance outstanding as of September?

It is not that kind of a number, it’s more of a gross debtors and [ latest ] numbers. So, well you can take it off-line.

No problem. So any fund limit, can you throw some light on the fund limit, non-fund and fund base?

Yes, the non-fund based, we have a limit of INR 4,000 odd crores, and which is almost 70-odd-percent utilized, 75% utilized. So we have still room there, substantial room. And on the fund based, we have hardly utilized since we have a CC limit of INR 350 crores which is not utilized as of date. We are seeking out some cash on the balance sheet. And then there are equipment loans of around INR 190-odd-crores and supply chain finance of around INR 40 crore.

So you said INR 350 crores, fund based, right, sir?

Yes, fund based, INR 350 crores.

And this -- how much it is just 50% you said, right, sir?

No. On fund based, we have not utilized anything.

Okay, sir. And sir, what is the toll hike sir, in April for the projects?

What is the?

Toll hike, toll hike?

Toll hike is approximately on Sambalpur, Dhankuni and Belgaum-Dharwad, it is around 3.65% that was from 1st April 2020. And in Bhandara and Durg it is around 1.67% from 1st September 2020 and in Jaora-Nayagaon 7% from 1st April 2020

[Operator Instructions] The next question is from the line of Parikshit Kandpal from HDFC Securities.

Satish sir, this question is for you. If you can help us give some sense on the non-road ordering segment [indiscernible] pipeline and any other segments beside railways and T&Ds are looking at to enter maybe water or metro?

So basically, railways is playing up a good opportunity. There are projects being bid out from our RVNL [indiscernible] . Then we have participated in any bids, almost 3 bids are yet to be opened. Power T&D, we are not seeing much of ordering happening now. Last we received like this 3 projects, UP, Varanasi has received around INR 87 crores order and Bihar 2 projects around INR 85 crores and INR 75 crores.

Anything on water?

Water, definitely, we are exploring and we will be bidding and participating in water projects too. But we haven't received anything yet.

And on metro and building segment, I think, because we do have some on the private...

Yes, building segment we would be start bidding from the next quarter. We have put up our vertical for building, participating in building.

So sir, what will be the target segment for the building in terms of clientele what kind of prequalification we have right now for bidding in that segment so if you can throw some more light on that?

We have a structure in place where qualification wouldn’t be a challenge. And execution wise, like we have restarted with buildings. So if you see first 2.5 decade our career was in buildings only. So this vertical now, we are trying to put up because there’s a lot of opportunity for the large building projects

But what will be our 35 PQ as of now for the building segment, single refine products to what content can we do?

There won’t be a challenge because we’ll be doing joint ventures. And PQ wise, we can bid for almost size up to INR 1,500 crores.

And this will be largely government buildings? Or looking to do some private real estate building also? So what would be the target ...

Our target is government, state government, semi government, central, a lot of projects are coming.

There could be some possible order book additions in this financial year from the building segment?

Yes. But this Q2 -- H2 would be like procuring. And maybe next year, we'll see some execution in buildings.

Okay. And water also you're saying you're exploring some opportunities.

Water, we are exploring if we get something in Q3. We may start even in building if we get in Q3 then Q4 we may see some execution.

Water what kind of PQs in the qualification?

Water also -- see, the various tenders have various qualifications. Somewhere, we qualify on our own, and many of the places we need JV partners, which we already have in place.

So what can you bid for like a single project size and [indiscernible].

Here also, we are doing INR 500 crores to INR 1,000 crores project we are participating.

Okay. So just on more thing Paresh bhai. On the debt, stand-alone debt for this year so how do you see that ending up by March from the current level? Because we have hardly have any fund base any working capital utilization, it’s largely term loan. So where do you see it ending the financial year?

So based on current working, I think so we -- and H2 which will be a good season of execution. We typically end up probably using our our fund based limit to around 60% and other than the project loans also would increase by around approximately INR 200-odd-crores --INR 250-odd-crores based on rolls and other executions. So we’ll have to probably project loans will increase as per the execution, fund base would be in the range of 60%

So we are looking at about how much like INR 350-odd crores of debt or like at the year-end?

Additional debt of approximately INR 250 crores on the working capital. And project base would be approximately as I said around say INR 300-odd-crores -- INR 150 crores to INR 300 crores.

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

And congratulations for a great set of number. A couple of questions from my side. For the second half of the year, I mean, we obviously said what are the segments that we are targeting in terms of order intake. But in terms of numbers, what kind of orders that we are targeting in the second half of this year?

Looking at the opportunity in highway sector and other sectors like railways, particularly and also when we are exploring model we feel like we should be easily able to bag another INR 3,000 crores to INR 4,000 crores in EPC segment and maybe 1 or 2 HAM projects.

Paresh sir, what is the kind of CapEx that we did in Q2? And what is the full year target?

Q2 was approximately INR 12 crores.

Okay. And for the full year will be?

By year end maybe maximum of around another INR 30 crores more -- INR 25 crores to INR 30 crores.

Sure. I just wanted to recheck. You said the toll hike in April in the projects was 3.65% and in September was about 1.7%.

Yes, 1.67%.

Sure. And lastly, if you could help us with the equity that we infuse in our projects in Q2 and also the year-wise breakup of incremental equity requirement going ahead.

So in Q2, we had invested, including our CGD project, INR 30 crores. And in Q1, it was around INR 56 crores. So balance for -- to be invested in 2021, apart from this INR 86 crores, which have been invested is around INR 210 crores, which will be basically on the HAM projects. And post that, around INR 160 crores in '21/'22.

So overall, I mean, is this the only equity requirement? Or will we need something in FY '23 also as well?

So based on these projects, no other -- no additional requirement, but when new projects come in probably there will be some.

Sure. And lastly, our depreciation expenses have kind of reduced in the last 1, 2 quarters. So any particular reason there?

No major additions, as I said, because overall addition for the whole H1 is around INR 15 crores. So nothing major.

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

Yes. Sir just wanted to check this land status for the 2 Bihar projects that we have won. What is the status currently? And by when we can expect the appointed date to come for these projects?

So land availability is very good in Bihar like one project has almost 98% of the land available and the other one is around 91%. And appointed date just got delayed because of elections. So another week’s time we should get appointed date.

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

Sir, I think somewhere in your remarks you spoke about your interest in water supply projects. In UP, I mean, recently UP state has given out some orders, rural water supply so did we evaluate this opportunity, because this was a very big opportunity or did we participate in?

Yes, we did participate in this projects.

Okay. So we couldn’t manage anything because I think [Foreign Language] it was not about L1 status, I mean even the L2, L3 was supposed to get some orders. So the bids have...

We did participate, but we could not succeed in getting anything.

Okay. Sure. And in terms of CGD, I mean, we don't get to hear much, I mean, if you could share your thoughts on the CGD business as I mean Ratnagiri operation, how about Davangere and Latur Osmanabad and where are we in terms of its reinvestment? Or have we started working on the ground or not? And even in case of Ratnagiri, I think it has been going a little slower than our earlier expectation. So if you could share your thoughts on the CGD vertical, please?

On the CGD, Ratnagiri though it started off a bit slow because for the first 2 years, but then just picked up substantially and we are more than 40 -- 30, 40 stations already at Ratnagiri for transport. In Latur also, we have started commercial operations. And Devangiri there we are just about to start by December. So CapEx, we have almost done to the tune of around INR 130-odd-crores already out of the INR 800 crores and it is vis-à-vis the end of MWP we’re okay. There is extensions received from MWP due to the COVID activity. So there is no delay in fact, compared to others peer player I think so we are substantially ahead of those who are awarded the project spend at the same time. So things are going fine.

How much equity have you already included in this set?

As I said, INR 130 crores.

INR 130 crores is already invested between the 2 partners put together right, not yourself?

Yes. Yes.

[Operator Instructions] The next question is from the line of Manoj Kumar from DAM Capital.

Sir, just wanted to understand the opportunities from the state government on the road sector. In the next 6 months, what are we looking at? And in the FY '22, what could be the major basket price for us in that? What are the state governments that likely to come up with new orders?

Yes. See, state government, UP is coming up with another expressway project, which is Ganga Expressway. So land acquisition is in advanced stage in that. So we are expecting that greenfield expressway to come soon, which is around INR 35,000 crores, INR 36,000 crores. Tamil Nadu has come up with peripheral road which is to the tune of INR 2,500 crores and we are qualified in the 7 bids, which have been short listed. And other than this there would be opportunities in other states, but they're yet to be announced.

[Operator Instructions] Ladies and gentlemen, that seems to be the last question for today. I would now like to hand the conference back to the management for their closing comments. Over to you all.

Thanks to all the participants for joining this call, and we would be happy to take any further questions. We are available on the contact, which are already given on our presentation or you can also connect with Stellar [indiscernible]. Thanks a lot, and happy Diwali and a safe Diwali to everybody.

Thank you, everybody, and happy Diwali.

Thank you. On behalf of JM Financial, that concludes this conference. Thank you all for joining. You may now disconnect your lines.