Dilip Buildcon Limited (DBL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Dilip Buildcon Limited Q1 FY '21 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Jiten Rushi from Axis Capital. Thank you, and over to you, sir.

Thank you, Neerav. On behalf of Axis Capital, we welcome everyone for the Dilip Buildcon's Q1 FY '21 Earnings Call. Today, from the company, we have Mr. Devendra Jain, Executive Director and CEO; Mr. Rohan Suryavanshi, Head, Strategy and Planning; Mr. Radhey Shyam Garg, Chief Financial Officer. We thank the management for giving us this opportunity. We will begin with an opening remarks from the management followed by Q&A. Thank you, and over to you, sir.

Thank you, Jiten Ji. So firstly, thank you all of us. Thank you for joining us today. I hope all of you are keeping safe and sound in these tough and extraordinary times. Firstly, I, along with the whole Dilip family, would like to welcome all our investors and partners to this conference call for the quarter ending 30th June 2020. It is my great pleasure and honor to be able to host this call and update all our partners of the important milestones we have achieved this quarter and our plans for the year going forward. So as you're all aware, the past few months have been unprecedented for the entire global economy due to the COVID pandemic. The Indian economy has also faced severe headwinds and recorded a contraction after so many years. Many businesses had to face disruption, and infrastructure was also not spared and definitely was among -- one of the most affected industries. Although the infra industry got the relaxation to resume work early, but it faced major problems like shortage of labor and nonavailability of raw materials due to a broken supply chain. As things started to normalize, we were hit by an early onset of monsoons and 2 hurricanes, which impacted work. It is important to mention that this was the rainiest June in 7 years and the fifth rainiest in 4 decades. So work obviously got impacted. Along with that, obviously, the COVID pandemic is also an ongoing situation. But not just past, but even the future is difficult to predict what kind of challenges and disruptions it will bring. But I'm proud to say that over the past few months, the industry has risen and adapted to the challenge as well. If I talk about our company specifically, we also rose to the challenge. We started our operations in the month of April while following all social distancing regulations and norms. Informative workshops for labels on COVID and proper sanitization facilities were arranged. While earlier in the quarter, the execution was very sluggish, but things started picking up gradually. And now we have achieved near normalcy. We have always been known as an execution-focused company. So I'm happy to report that all our sites are up and running. Labor availability has reached 90% plus. Raw material issues are largely resolved, barring localized disruptions, which may happen due to local government lockdowns. Project execution has reached 80% plus of pre-COVID levels. But because of monsoons, the execution is obviously going to be impacted in the quarter 2 FY '21. However, post monsoons, we expect all sites to operate at normalcy as all the sites have requisite permissions and our equipment and manpower are fully mobilized. Now while we did everything that was possible in our capacity and capability, the government also tried to offset the disruption caused by COVID and give boost to the infrastructure sector. They tried to do this by doing the following. They relaxed the payment terms as per schedule license, schedule G, which in turn has improved cash flow for all companies. They have released proportionate bank -- performance bank guarantees for projects. They've given extension of time by 3 to 6 months in all projects. And lastly, they have tried to resolve stock issues like change of scope and other long pending matters, thereby, again, improving the liquidity and cash flow of companies. To complement the government, the RBI also further helped in liquidity by giving the following measures. They provided emergency line of COVID-19 loan. They relaxed margin for computing working capital limit. They gave moratorium for term loans, introduced TLTRO, which has helped companies in securing lower-cost debt. And they reduced bank rate, which will help companies in reducing interest costs going forward. Now all these above measures that I mentioned have helped us in maintaining a very comfortable liquidity position in an unprecedented tough situation. I'm extremely happy to report that. Because of which, the company has in turn ensured timely payments to all the stakeholders, whether it's suppliers or employees or government agencies. Taking cognizance of all these things, the credit rating agencies have reaffirmed our ratings, let me say, reaffirmed our ratings and upgraded the outlook. This is very important to point out that in an environment where companies have seen negative rating actions, we have provided comfort and confidence to rating agencies about our business and our model. This confidence also comes from our balance sheet strengthening and debt reduction program, which is still our focus area. But having said that, COVID has caused an unforeseen speed breakout, but we are confident to be back on this program as the situation normalizes. Now allow me to shift gears to talk about how our order book is looking. In this financial year, even amidst the COVID pandemic, we have one project worth [ INR 1 lakh, 7,032 million ] in various sectors such as road, special bridges, tunnels and irrigation. These projects are across 5 states, out of which 2 are new states, Uttarakhand and Bihar. This takes our total geographical presence to 19 states. I'm also very happy to update all our partners that this is the largest and the most diverse order book in the history of DBL, totaling [ INR 2 lakhs, 61,152 million ]. It is a matter of great pride for us that we have achieved our target of diversifying our order book away from roads. The split today is road, 50%; irrigation, 19%; mining, 13%; special bridges, 9%; tunnel, 6%; airport, 2%; and metro, 2%. Let me remind all of you that just barely 3 years ago, road accounted for almost 90% of our order book, which has now come down to almost 50%. Now besides the orders that we've already won until now, the company is also targeting new orders of at least INR 50,000 million in the remaining part of FY '21 across various sectors that we are operating in. Here, it is important to point that NHAI has till now awarded only 460 kilometers of the total 4,500 kilometers that it wants to award in this financial year. So we are confident that we will have a very robust and diverse order book by the end of the financial year, which will give us great visibility till FY '24. What gives me this confidence for the future of the sector is that the government has made infrastructure investment as the cornerstone of its plan to revive the economy and to double the GDP to $5 trillion. Last year, the honorable Finance Minister announced the National Infrastructure Pipeline of more than INR 1 lakh -- INR 100 lakh crores to boost the infrastructure sector. This was reiterated by the honorable Prime Minister on multiple occasions. The government then came out with a vision document detailing all the investments across sectors. And most recently, just earlier this week, the government launched the National Infra Pipeline Online Dashboard, which showcases real-time investment opportunities. There could be no clearer indication of the government's intent than the regular updates and announcements for the sector, which is very visible for the order -- with the order pipeline coming up. This should provide great comfort to not -- all companies in the sector but also to investors who are looking at the sector very, very keenly. Now as I've mentioned earlier, that execution has always been the core focus of the company. In that period, let me also update that we completed one HAM project, Mahagaon Yavatmal, and earned early completion bonus of INR 110 million in this quarter. Now we are confident of continuing with this execution pace for the year, barring obviously any unpredictable disruption due to COVID. Now it is this reputation for execution and quality that help put investors faith in our under construction assets. We sold our first batch of 24 assets to Shrem, and the deal is almost concluded now with 95% plus of the money already having come to us. Over that, we were able to secure a similar deal with global major Cube Highways for 5 of our assets. The progress on those assets has also been very satisfactory. Now for the remaining old 7 HAM projects, we're in the final stages of signing with another reputed global firm, which will help release all our investor equity. It will further strengthen our balance sheet, help us reduce debt and provide us with equity for future investments. Once this deal concludes, it would be the third time that the company has completely monetized its investment and fulfilled its promise to investors and made itself lean again. On that high note, I'd like to hand over the floor to our CFO, Mr. Garg, who will run you through the financials. Thank you.

Thank you, Rohan. Good evening, everyone. I welcome all our partners to our quarter call. Let me start by saying that this was an exceptional quarter with unprecedented lockdown and early as well as high rainfall. Q1 was impacted and its numbers are incomparable with the same quarter last year and even with Q4 of last year. But even in that tough backdrop, DBL has performed exceptionally well and not allowed revenue to fall substantially. This has been possible because of our model of complete ownership at project level. With this caveat, let me present the results for the quarter 1 of FY '21. Friends, our revenue decreased only by 17% in Q1 on year-on basis, mainly due to limited availability of workforce, disrupted supply chain on account of lockdown and onset of early monsoon during this quarter. EBITDA decreased by 27% in Q1, mainly due to revenue decrease and underrecovery or underabsorption of fixed overheads. Consequently, profit after tax decreased by 70% on account of decrease in EBITDA, underrecovery of depreciation and interest finance costs and also increase in tax liability for this quarter. Tax expense increased as claim for deduction under ATIA is 0 for this quarter. Now let me take you through some important items of the stand-alone balance sheet. Expenditure on fixed asset is about INR 947 million in Q1. This is as per our commitment made during previous year that we'll keep our expenditure on capital low. Inventories at same level of Q1 FY '21 as it was in Q4 of last year in absolute terms. Increase in debtors on account of delay in collection of May '20, which came in July '20 to us. Amount of -- this amounts to over INR 250 crores, which is building up in May, but we could get this money only in early July. Increase in loans given is mainly on account of our investment in SPV created for HAM projects. Decrease in current assets is mainly due to decrease in advance to suppliers and retention money. We had to take care of our supplier during this tough time and establish a continued confidence in our ability to pay them on time. Consequently, we could do good top line. Net debt to equity ratio slightly increased to 0.92 in Q1 FY '21 from 0.81 on account of reduction in revenue and increase in working capital on temporary leverage basis. Decrease in noncurrent liabilities on account of decrease in noncurrent portion of mobilization advance, where increase in other financial liabilities is on account of increase in current maturities of long-term borrowings. Decrease in other current liabilities on account of increase in current portion of mobilization advances. Now I will take you through some other financial numbers. The cash generated from operation -- operating activity is negative at about INR 200 crores as compared to INR 366 crores in Q1 of F '20 due to reduction in PAT, increase in working capital on account of COVID pandemic. Working capital days has increased slightly from our committed for the range of 90 to 114 days, but we believe that this is a temporary phenomenon. And we should be able to overcome this in 2 quarters. As on March 31, 2020, it was 90 days and 93 days on June '19. Effective tax rate for Q1 is 34%. Effective tax rate for FY '20-'21 will be in the range of 32% to 35%. As the company is not opting for concessional rate of tax under 115BAA, it will result into higher cash outflow due to MAT credit we still have in our books. Friends, this has been an exceptional quarter. Now we can open the floor for question and answer. I'm ready to hear out from you guys. Thank you.

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

Congratulation on good set of numbers, especially in this COVID time. Decent run rate on the revenue and a good order accretion and diversified order book. Sir, I'm trying to -- sir, given the fact that COVID you have achieved a 50% pre-COVID level of execution in July or August, sir, how do you see the next 3 quarter panning out? And will it be possible for you to give any revenue guidance now? That's the first question, sir.

[Foreign Language]

Okay, sir. Understood, sir. [Foreign Language] 50% stake, HCC [Foreign Language] INR 20 billion [Foreign Language] INR 2,000 crores [Foreign Language]. Am I right?

That is not 50%. That is the 60-40 ratio for the JV, but [Foreign Language] 100% execution. [Foreign Language] They are for only qualification partners.

[Operator Instructions] Next question is from Alok Deora from Yes Securities.

Congratulations on a very good set of numbers considering the situation. Sir, just a couple of questions. One was, sir, [Foreign Language] across segments, just if you could throw some light on that.

There is still at NHAI above INR 50,000 crores of order pipeline, a small number, 50% from the HAM and 50% from the EPC. [Foreign Language] INR 30,000 crore order flow [Foreign Language] railway, coal mining [Foreign Language]. So order pipeline, we have actually a strong order pipeline.

Okay. Okay. Sir, like in this time, the execution is under stress, so typically the companies who are a little heavy on the assets like owning majority of the equipment, so generally [Foreign Language] problem, the fixed cost is slightly on the higher side. So in this case, in our case, has it played out to -- in our favor? Or it looks like it has played in our favor. Am I correct? Or if you can just throw some light on that.

Alok Ji, it has. [Foreign Language] It's that you are able to execute work and restart work very soon. [Foreign Language] We were not dependent on any subcontractors. [Foreign Language] So we were able to also pick up as soon as work started. Now given how much challenges go, we are aware of the challenges that comes with our model, which is why we always try maintaining 2.5-year order book [Foreign Language]. Now this COVID situation was obviously very unprecedented, which no one would have predicted that the government would bring everyone under lockdown. [Foreign Language] But I think we are happy that [Foreign Language] as soon as things started, we were able to kick start and bring all the things back to normalization. And most importantly, [Foreign Language] and all of it was paid on time. So in this time, [Foreign Language] I think that was the biggest achievement that we personally feel when you are trying to build a brand that you are taking care of the people who work with you.

So sir, just a related question [Foreign Language] which was there in, say, March. How would it be now in the spend?

[Foreign Language] Only discussion is due to the monsoon. Just post monsoon, we will resume our full strength as before the lockdown period.

Okay. Just one last question. [Foreign Language] Mahagaon Yavatmal bonus income?

Yes, yes. INR 110 million bonus is there for the Mahagaon Yavatmal.

Okay. Okay. [Foreign Language] There's no other amount?

No, no other bonus.

Next question is from Vibhor Singhal from PhillipCapital.

Sir, just 2 questions from my side. So first is, we have received some really great order inflows this quarter. So many of these projects are [Foreign Language]. I mean most of those projects, I think, the agreement is that we will be executing the 100% of the work. So apart from the INR 4,000 crores order, which was for irrigation, all the other projects were reasonably -- I mean they are not big in size or face. So why did we require to go with HCC as a partner in those projects? Was it some sort of a different qualification criteria? Or is it, I mean, that we basically wanted to get their name and some sort of how it's technical or more like the financial qualification that we are talking about?

We need only the technical qualification. [Foreign Language] 2-year [Foreign Language]. So we need only technical qualification. But the financial qualification [Foreign Language] technical partner.

Fair enough. And sorry, JVs with HCC but the entire execution will be done by us only, right?

Yes, yes, yes. 100%.

Right, sir. And just given that now that we have diversified more into other segments, as we mentioned in the opening remarks that road is now just barely 50% of the order book. In road segment also, I think the orders that we took in this quarter were primarily from -- in the form of HAM projects. So going forward, [Foreign Language], will we curtail ourselves from bidding for more HAM projects given that they require it to be supported and then you need to sell them to somebody also at a later date? And now that we are getting more orders in road segment, so is it like that we can hold ourselves back in the road segment in terms of going only for EPC projects and trying to get increase in other segments? That is unless we get good HAM projects, we can continue to go for that.

[Foreign Language]

Fair enough, sir. Lastly, sir, NHAI, the BOT model [Foreign Language]. Will we be interested in any BOT projects? Or we will not be?

[Foreign Language]

[Foreign Language]

Absolutely, absolutely. We have a very good track record in the BOT project [Foreign Language]. Actually, we are getting that revenue.

Fair enough. Lastly, if I can just squeeze one more question. Sir, on the debt front, this quarter, of course, things were very difficult for the entire industry. So it was expected [Foreign Language]. What do you think of that? During the year, debt level [Foreign Language]?

See, going forward, because debt level you have [Foreign Language], so it is going to taper down from this particular level. So we have typically created a liquidity window for us. [Foreign Language]

[Operator Instructions] Next question is from Rajendra Mishra from IDFC Mutual Fund.

Okay. So this order inflow number that you gave, can you give it again and the breakup of order inflow number?

INR 10,700 crores. And breakup is like Bhadbhut barrage, it is for INR 4,167 crores; Dhrol-Bhadra road project, INR 882 crores, Sahibganj bypass, INR 1,900 crores, Repallewada, INR 1,140 crore; and the Rishikesh tunnel, INR 1,334 crore; and the Hoskote bypass in Karnataka that is a road project, INR 1,278 crore, totaling to INR 10,700 crores.

Rajen Ji, all of this is also very detailed out in our presentation. And you will go through that Slide 6, I think.

Okay. And order book, that split is given. How much is NHAI? And how much is state government?

Everything -- a very detailed split is given in our presentation, all in what sector, from what agency and what's the geography, all those splits are given very well articulated and clearly articulated in the presentation.

Okay. I'll send that. On the asset divestment that you spoke about, so these 3 deals, what's the -- how is the multiples that deals are happening in market today? Or how much was that 2 highways which was done, let's say, price-to-book multiple and/or price to equity invested multiple? And what's the multiple that's going around in the market today? Any insights will be helpful.

You see, the initial deal, which we had done with the Shrem Group. So in that, the multiple was around 1.05. And now there are 5 projects that we have signed with Cube Highways, and so in that -- at the time of signing the deal, I believe the multiple was around 1.4x. But nonetheless, the valuation, which we have agreed with you, that is going to get finally frozen at the time of the CODs of the project. And for the new deals for the remaining 7 assets that we are looking at, obviously, like the valuation are purely dependent on the COD of the projects. So there are multiple variables in a HAM project. So therefore, we cannot say what would be the multiple that could stack up as of now.

Okay. And what happens once we are through with these assets and we release our invested money? So we, again, get into a new round of asset creation or we stay purely a licensee. So what's the thought process?

So that is exactly the thought process. You see that we have again started once we have already started bidding for the new HAM projects. And we have procured quite a few number of HAM projects during the current financial year also. So whatever is the divestment money that we received, again, they will be redeployed in the new HAM projects.

Okay. And last thing on this, have we opted for moratorium in these 4, 5 months? Or we have continued to service our debt as it is?

Yes, we have opted for the moratorium as per the RBI.

Okay. So on how much loans? What part of loans will we be doing that?

So we have typically obtained a moratorium on our term loan, which we have borrowed for our machinery procurement as well as for the working capital.

Okay. And in line with what the previous person asked, if we were to -- would we have a sense on -- like you said, we want to close the year with at least similar revenue as previous year. So any sense on debt to equity? Where do you want to close it?

Sir, our endeavor in the last few years have always been to reduce the debt equity. And last year, when we gave the target, it was below 1, and we brought it 0.8 like we've done. Now this year, it is too early to give any kind of target. We obviously want to -- the target was to reduce it furthermore. But given this whole extraordinary situation that we've come into, it would be difficult. But going forward, we might be able to give you better color on it. But like we mentioned earlier, our endeavor is to only continue reducing debt. So it will obviously keep improving.

Okay. And just if I can squeeze one more thing. You also said in your opening statement that equipment and resources are fully mobilized. And post monsoon, we expect things to pick up again. So in terms of labor availability and all, we are almost there in terms of pre-COVID levels? Or what's seen there?

Yes, sir, I mentioned that also in the opening remarks that we are -- more than 90% plus of our labor has come back.

More than 90%.

Yes, sir.

Next question is from Rohit Natarajan from Antique Stockbroking.

Congratulations for a good set of results in comparison to the current period that we are. Sir, my first question is more to do with the sector as such. Sir, we have been hearing more on BOT and HAM projects. There are some changes, policy changes that has been talked about in media. One is to do with the COD plus 2 years which will be relaxed. And in HAM projects, there is a lot of policy proposals put across by National Highway Builders Federation on bank rate plus 300 basis points. Is there any improvement in these 2 policy proposals from your side? Do you have any idea as such?

[Foreign Language]

[Foreign Language]

[Foreign Language] bidding pipeline, around INR 50,000 crores [Foreign Language].

Okay, sir. Sir, my second question [Foreign Language].

[Foreign Language] This is not more than INR 25, INR 30 crores additional CapEx [Foreign Language].

[Foreign Language]

[Foreign Language]

But it's a nominal figure, it's not a big figure as such? Percentage of...

[Foreign Language] I'm not mentioning the exact figure here, but nominal figure, sir.

Okay. Sir, my third question is more on the trade receivables part. [Foreign Language] INR 16 billion in comparison to INR 12 billion in March. [Foreign Language] Where exactly is the situation like?

[Foreign Language] around 250 -- INR 250 crore kind of July 1. And so levels are the same as the March levels, only there are some delays by 5, 7 days because of COVID-19 situation and so banks or whatever may hamper that. [Foreign Language] There is no delay.

Okay. Okay. [Foreign Language]

[Foreign Language] Moratorium? The moratorium is technically in line with guidelines. Okay. So RBI has allowed the moratorium till August 2020. So accordingly, we have taken the moratorium on our term loan facilities and the working capital.

[Foreign Language]

Value terms, you -- means you want to take what kind of cash flows that we have saved by.

Yes.

So that will be approximately INR 30 crores per month.

Okay. [Foreign Language] Any progress on that?

[Foreign Language] So like I mentioned in the opening remarks, [Foreign Language] time line because it requires detailed agreement and all that. so we cannot give a time line, but it is in the -- like I mentioned earlier, it's on the final stages. I only request you to be patience. [Foreign Language]

[Operator Instruction] Next question is from Manish Goyal from Enam Holdings.

Yes. And sir, congratulations on excellent execution in tough times and very strong order inflow. Just a couple of questions on my side on -- which was asked by your previous speaker as well. On the HAM projects, like currently, there has been a negative carry. So do you think any near-term resolution to this and more clarity as we are also bidding for more HAM projects now? And how is it going to be, say, going forward, the interest rates for the -- during the financial closures for the HAM projects, the new HAM projects, both issues if you can just clarify, sir?

[Foreign Language]

Okay. So considering this, you are fairly confident that you will be able to strike the third deal for 7 HAM projects.

Yes.

[Foreign Language] We are already speaking in the time line of [Foreign Language]. It is in line with our past deals.

Okay. Wonderful. And one more clarification in the cash flow statement. We see basically cash outflow of INR 95 crores on account of purchase of assets. So is it pertaining to cash outflow on the CapEx which we had already committed earlier? Or is it fresh?

Manish Ji, it is not the fresh. It is what's already committed. So capital advances converted into the actual outflow. So this is what -- from the balance sheet point of view, that's converted into the purchase of equipment, that is the coming year. Otherwise, it would not have come here.

So for current year, if you can just give some perspective, how much would be your outflow for purchase of equipment?

Manish Ji, [Foreign Language] about INR 500 crores [Foreign Language].

So basically, over and above this, what we have already in cash outflow has been incurred, another INR 100 crores is something which we should expect for current year?

Yes, yes.

Okay. And last question on the margin front, like because of like we have seen that values have been increasing and then other logistic costs are also increasing with increasing diesel prices, so how do we see margins in the current year, sir, for the entire year?

[Foreign Language]

Next question is from Prem Khurana from Anand Rathi.

[Foreign Language] Sir, one was, I think, just to continue on this capital expenditure. So I mean as I see it, [ because of the core orders ], we have seen you have more in some of these segments, which are -- I mean the segment other than your roads and irrigation. And you've taken one project in special bridges and then there's one tunneling as well. Besides that, I think you also said, I mean, you went -- diversified into 2 new states in Uttarakhand and [ Maharashtra ]. And so given the fact that we're getting into these new kind of projects at new states, would INR 100 crores of capital expenditure that you spoke about, would that suffice?

[Foreign Language] INR 100 crores [Foreign Language] financial year INR 100 crores [Foreign Language].

So do you mean to say [Foreign Language]?

[Foreign Language]

And the second one, [Foreign Language] there will be partial release of bank guarantee. So have you availed the benefit? [Foreign Language]

[Foreign Language] INR 250 crores [Foreign Language].

Sir, given the fact that [Foreign Language], but despite that, debt has gone up substantially.

[Foreign Language]

Okay. Yes, yes. Sorry. And the last one was just a small clarification on cash flow statement. [Foreign Language] And when I look at the cash flow sheet [Foreign Language]. So does that mean that the finance cost was way in excess of INR 200 crores?

No, no, no. INR 150 crores as per the financial [Foreign Language]. The format of the cash flow is like that the interest cost go directly there. That is right. If you see in the total debt what is the outflow on account of borrowings because we have paid the debentures of INR 45 crores, and we are paying some interest on the working capital loan also, so this is put together. We have to put these in that bucket.

Okay. [Foreign Language] Eventually, you've taken it as a part of debt itself.

Yes, yes, yes.

[Operator Instructions] Next question is from Shravan Shah from Dolat Capital Market Private Limited.

Yes. Congratulations for good set of numbers and sizable order inflow, sir. Sir, most of the questions have been answered. Just trying to understand in terms of the -- you said that you would be targeting INR 5,000 crore new inflows. Devendra Ji, is there any mining projects that also are we looking at?

[Foreign Language]

Okay. So we are also looking at MDA also.

Yes, yes.

Okay. And sir, [Foreign Language]. Just one second clarity needed in terms of the ongoing asset monetization. I understand the time line is difficult. But FY '21, it will be done?

100%, 100%.

And it is not the bank rate to become a plus 3% is not an issue in terms of finalizing the valuation?

[Foreign Language]

Okay. Okay. Okay. And as you've also said, in terms of working capital days will also taper down and the date will also taper down, but broadly, we'll try to add up last year's number so in terms of the date also end up working capital? Or will it be slightly above that?

Yes. [Foreign Language] And working capital, obviously, we are trying to bring on the normal number. So because it was excess, as I earlier mentioned, INR 250 crores was received in the July 1 week. Otherwise, it would have been nearby the normal numbers only. So we will bring it to the normal number.

Okay. And sir, [ by March ], how much would be our mobilization advantage that we have already received? And what would be the retention money that we are having on balance sheet?

[Foreign Language] INR 1,400 crore [Foreign Language] as of June 30. And as far as retention money is concerned, it is -- just a minute, approximately INR 700 crores.

Okay. Okay. And sir, whatever the new orders [Foreign Language] in terms of the land would not be an issue, so it would be in the 70%, 80% treaty land would be there for HAM projects? And also broadly, this is an NHAI project, so -- and whatever the old order book, which was there as of March, how much is already we have received the appointed date?

[Foreign Language] The situation is better.

So broadly by end of March or maybe May, June, we will be getting the appointed date for the new HAM projects?

[Foreign Language]

Next question is from Rachit Kamath from Anand Rathi Shares and Stock Brokers.

First of all, congratulations on a good set of numbers given the circumstances. I just wanted -- most of my questions have also been answered to that section. I have one question that's pertaining to, what is the fund-based and nonfund-based limits? And how much is being utilized as of now? Like how much is more unutilized also?

The utilization for the -- actually, nonfund bank limit is around 70%. Okay. And fund-based limit is 85%.

Okay. Are we going to be looking for any kind of extension of any kind of fund limits? Or do you plan to do any in the near future?

No. See, we have already -- the full amount of working capital has already been tied up by the company in terms of both the fund base and the nonfund-based limit. And this financial year, maybe just because we are having a decent order pipeline, so we might go for additional nonfund-based limit to the tune of around INR 500 crores. That's it.

Yes. That's -- yes. Okay. So INR 500 crores addition you may go. Okay.

Yes. Nonfund-based limit.

Yes, yes. Nonfund. Sure, sure, sure. What would have been nonfund-based limits in terms of absolute amounts as of now, sorry?

So that's -- probably we cannot share as of now on this call.

Sure, sure. I guess I -- sure, sure. Sir, second is you're talking about this INR 5,000-odd crores kind of inflow number. Just wanted to understand what is your broad estimate in which segment you would have [Foreign Language]?

[Foreign Language] This is difficult to distribute right now.

Sure. [Foreign Language] decrease in road projects, especially on the EPC side. But are you seeing that the bids are more aggressive right now? Like how is it going on, like even in HAM for that matter?

[Foreign Language]

[Operator Instructions]

Yes, sir. Congratulations on good set of numbers in the tough time. Sir, my question -- I have a few questions. So on the order backlog in the presentation, what I can see, this Pachhwara mining project and the Icha dam project and the metro projects of Bhopal and Indore. So it's not moving the way you were highlighting in the past. So any reason why the -- obviously, I can understand the COVID, but so far, what is the status like that?

[Foreign Language]

Right, sir. And sir, one more question. On the -- as you are entering new geographies, bigger sectors, so are we adding any head count on the leadership role to manage the newer sectors, as you shared, tunneling, irrigation? So are you adding any leadership headcounts for that, sir?

That's our routine process. [Foreign Language] That's the routine process. [Foreign Language] It's new for us. [Foreign Language]

And sir, last question in terms of execution. As you have said the guidance to new guidance is difficult. But sir, is it fair to assume that except for the newer order inflow we have received so far, we can do a significant execution only ex of newer order inflow from the existing order backlog only this year?

[Foreign Language]

Okay. So in new order inflows, we don't expect much execution this year, right, sir?

[Foreign Language]

Okay, sir. And sir, any mobilization advance expected in next couple of quarters?

There will be, of course, mobilization advance for some new projects like dam, tunnel.

That depends on the appointment date basically. [Foreign Language]

I mean we have received for the older projects mobilization advance?

Yes, yes. Absolutely, absolutely.

Next question is from Mayank Goel from SBI Capital Markets.

Congratulations on a good set of order inflows. There's 2, 3 questions. First one, this might be a repetition, but in continuation to what previous participants asked regarding the changes in bank rate to some factor link to maybe MCLR in HAM projects. Sir, my question was, when do these changes take effect? For example [Foreign Language].

[Foreign Language]

Okay, sir. And sir, second question also in continuation to what Rachit asked. Sir, EPC, we had always seen aggressive competition. [Foreign Language] But sir, HAM always, the number of bidders tended to be in the range of 5% to 8% or maybe 9. But in FY '21, also, we are seeing HAM projects [Foreign Language]. So do you think that this aggressive bidding, which was not a major worry in HAM projects, the HAM projects [Foreign Language]?

[Foreign Language] It's a very different model.

Okay, sir. And sir, last question. [Foreign Language] Labor is 90% pre-COVID level target. But the total collections [Foreign Language] back to 90% collections. There's still a long road ahead to get to 90% that we had, pre-COVID level?

[Foreign Language] More than 95%. [Foreign Language]

[Operator Instructions] Next question is from [ Shantilal Patel ], an individual investor.

My only one question. As far as I understand, current year's revenue will be more or less equal to the last year. Is it right?

Yes, sir. Yes, it is our endeavor to reach around that.

Okay. While profitability may go down because of the extraordinary circumstances, prevalent in some part of the accounting year. Is it correct?

Yes, sir. I mean it is early, but obviously, the profit because of the COVID situation already has taken some hit. Yes, correct.

So comparatively, there will be some impact, right? To what extent, that depends upon what happens later on. But definitely, the effect will be there. And in comparison with the last year, it will be down.

Absolutely, sir. That is correct.

Ladies and gentlemen, that was the last question for today. I will now hand the conference over to the management for closing comments.

Thank you very much, everyone, for being part of this call and asking all the questions. In case anybody has any other questions, please feel free to reach out to our company, and we'll be happy to answer it. Thank you again, and hope the rest of the year pans out great for you. Thank you.