Dilip Buildcon Limited (DBL) Earnings Call Transcript & Summary

Yes. Thank you, Malika. Good evening, everyone. On behalf of Axis Capital, I would like to welcome everyone to the earnings conference call for third quarter FY '21 of Dilip Buildcon. From the management, we have with us Mr. Devendra Jain, Executive Director and CEO; Mr. Rohan Suryavanshi, Head of Strategy and Planning; and Mr. Radhey Shyam Garg, CFO. Along with them, we have Mr. Ronak Saraf, Investor Relations from S-Ancial. So thank you management for giving us this opportunity. I would like to hand over the call to Mr. Rohan Suryavanshi for his opening remarks, followed by Q&A session. Thank you, and over to you, sir.

Thank you, Jiten-ji. First of all, on behalf of the whole Dilip family, I'd like to welcome all our partners today on this call for our quarter 3 FY '21 results. Also, I'd like to welcome all our investors to the new year of 2021. I'm sure this year will be better than the last. I mean, last year was an extraordinary year, but I think collectively, mankind rose to the challenge. And I honestly believe the worst is behind us. Governments around the world responded in a manner that we had never seen. And the result is that right now, we have a world economy which is getting stronger day by day, and we're really expecting better days ahead. So the way today's presentation will go is that we've given very nice presentation for all of you. It's a very detailed -- a lot of information on it. So I'll be running slide by slide on that presentation. And it would be great if our partners could also [ trend ] along with that. And also look at it at detail later. So without further ado, let me quickly jump to the presentation. And let me take you through the start of it. So the way that this presentation has been structured is that we will first give you an industry overview, what we see has happened currently and what do we feel is likely to happen in the next few years, our outlook on it. Then we'll give you a highlight on our business and how it's doing. Also, it's been 4 years-plus since we went public. So I thought it was a good time to also have an analysis of how we've done since then, given that last year has been so tough, so I thought it's a good time. So that what we are deciding to do in the future and set our goals for the next 4, 5 years. Finally, we have our financial highlights in this presentation. So moving on to Page #4. So this page gives you an idea of what the government is thinking. Right now, for the last 2 years, the government has been speaking continuously about infrastructure, and they announced the national infrastructure pipeline with INR 101 lakh crores worth of infrastructure projects. Almost 35% of these projects are on the implementation stage. Another 30% or so are on the [ DBR ] stage. So what is really, really heartening to see is that the government is not only talking about these project and has not only given a vision, but they've also started [ doing work ] on a big portion of these projects. It's just detailed numbers on that. If you move on to the next page, Page 5. This is the past trend for the infrastructure investment, and this specifically is about the Road Ministry. Ever since in the last 5 years, the government has kept on increasing its allocation for the road budget. And we're excited what will happen for the next few years as well. One very important thing that is important to point out to all our partners. For the last 25 years, this trend has played out. Every year, there is an election year. After that, the first year, the government takes its time to set its policies and the Ministry and everybody gets comfortable. Second year, there is an increase in infrastructure investment. Third year, that increases further. And fourth year also goes further. And then you see a dip in the fifth year, which is the final year of election. Yes, because the government gets review its social programs and its code of conducting and yada and yada. But what that means is, right now we're in the second year of this government, and there has already been an increase in infrastructure investment. For the next year, Budget has already spoken about how they're going to increase allocation. So for the next 2 years, we see a massive thrust, an increase in the number of projects that should come out along with the budget. That's the key takeaway that we wanted to give. Moving on to the next slide. Here we've enumerated the initiatives the government has taken for the industry during this COVID time. On the left-hand side, we've talked about initiatives the government has taken. On the right side, the RBI what they did, stuff like the government basically relaxed payment terms, which help in cash flows, bank guarantees were reduced, extension times are given. Most importantly, the change in ownership clause of [ hand projects ] where earlier, you could only transfer up to 49% until COD plus 2 years and then remaining 51% after 2 years. Now all of this has been done away with, and you can transfer 100% of the project in COD plus 6 months, which has a massive impact on cash flow for all companies, and I'll speak about it later. Specifically saying RB also gave moratorium and TLTRO reduced [ bank takes ], all those things happened. Going on. On the next slide, we've given you a snapshot of what the union budget held for infrastructure. I think we can all agree that the infrastructure was a massive push by the government in this time. And hence, whether it was the capital allocation or whether it was thinking about how private sector participation will increase and setting up a DFI for that, or eventually the government realizing that the monetization of assets is important, if you want to keep churning capital. So whether it's the government doing its own [ in with ] or relaxing rules for foreign funds, I think it shows a 360-degree approach in terms of the government of how it's thinking about infrastructure in totality. The next page is basically infrastructure allocation on different sectors. We've given you a snapshot of that. Moving on to business highlights of the company. Slide 10, we have just key highlights here. I'm glad to report that we entered into the railway segment this time. Similarly, we also won the greenfield tunnel project in Rajasthan. Most importantly, we won Siarmal Mine, which is a 50 million metric ton mine [ co-op ] of capacity per annum. This is the largest mine in private hands in terms of capacity. To put things in perspective, all India does 600 million tons of coal output per year. This mine alone will do 50 million metric ton of coal output per year. So we're very, very happy and proud to have won this mine and to be contributing to the country's coal productions. We also won 2 road projects -- sorry, we've completed 2 road projects before time. So we mentioned that. In totality, what has [ led ] is that today, we are sitting on our largest diversified order book. If you move to the next page, we will talk more about that. So this year, we won INR 15,000 crores-plus of orders. And these we won across 9 states and 6 sectors. So most importantly, so many states in so many sectors. Key takeaway here is that 67% of these projects were on a [ PPC ] basis and only 33% were on BOT basis. So that's most important. If we move to the next page, Slide 12, our current order book today stands at a very healthy INR 26,000 crores-plus. Most important thing is, Road is now only 43.72%, less -- so below 44% is our Road business. So the point that I would like to, for you guys to think about is, we were primarily a road company focused in fewer states a few years ago. But today, we are a pan-India infrastructure company present in these 8 segments, and with a very diverse order book. We're not dependent on any single industry or any single client. Moving on. If I speak about DBL's journey since IPO, this -- like I said, it's been more than 4 years since we went public. So we thought it was a good time to look at it, especially in the backdrop of COVID. So if we were to go to Page 14. I want to give you a snapshot of some of the key figures that has happened in the last 4 years from March '16 to now December 2020. Our order book at that time was about INR 10,000 crores, which now it's upward of INR 26,000 crores. Our revenue at that time was INR 4,000 crores. Now it's upward of INR 9,000 crores. Employees were about 19,000 people. Now we have about 37,000-plus. Equipment has grown from 7,300 equipment then to almost 13,000 equipment now, so almost doubled there as well so a large offering piece. So there has been a marked change in the company from then to now, much stronger, much diverse. If you move to the strong -- next slide of page 15. The most important thing that has happened in these 5 -- in these 3, 4 years, is the strong cash flow generation that the company has done. And there's 2 very important ways that I want to elucidate that. Number one, the revenue. We have grown INR 5,000 crores in terms of revenue in the last 4 years, but our net debt in that same time has only grown by INR 500 crores. This is most important. For the first INR 4,000 crores, we had INR 2,400 crores of debt. Now for the next INR 5,000 crores, we only needed INR 500 crores of additional debt. And why this is important along -- in terms of largeness of growth, in the same time, we had made investment of almost INR 4,300 crores. This investment has gone into almost INR 2,000 crores in equipment, about INR 1,100 crores-plus in hand and about INR 1,200 crores in our working capital, which was largely -- so this INR 4,300 crore has largely been funded from our operational cash flow, which was INR 3,800 crores in the last 2 years. So we want to reiterate that our focus has been on not just growth, but it has also been on strong capital generation and reduction of debt. So there is -- whatever [ misnomers ] had been around for the company in terms of debt, you can see it very clearly that we have invested significantly in the last few years and not let our debt to go anywhere. And it has been almost the same number as we were -- when we were -- when we went public. So the debt numbers have remained almost consistent, even with all this growth. Moving on to the next slide, Slide #16. So while I gave you some numbers, it wasn't just about numbers for us in the last few years. In these few years, we also went about our business in a holistic manner. We did other things as well besides just looking at growth. We put in systems and processes in place where we brought SAP and predictive analysis for our whole business. We focused on improving corporate earnings. We focused on getting bigger, better profiled people on our Board. We made sure that we monetized our assets, which was a promise that we made even before our IPO. We did one large asset quantity [ exchange group ]. The second that we've announced is on SKU. And the third, that is [ remaining with for 7 assets ], is in the final stages, and we hope to announce that soon as well. Finally, the company thought about diversification in 3 ways. Number one, we started segmenting diversification. Number two, we diversified ourselves geographically. And number three, we diversified ourselves in terms of tenure of contracts, short-term versus long term. Short term, meaning our road contract, duration of 1, 2, 3, 4 years in tenure versus long-term contracts, which are mining contracts, which are 25- to 50-year in nature. So you don't have to worry about building again and again every year and there's a stable cash flow that you can see for the next year for all your investments that you make in any asset is easily, you get that over the lifetime of that project versus the other projects where we have to keep moving our equipment and people. Page 17 is a snapshot of that strategy. So just 4 years ago, we were presenting only 4 segments. And today, we are presenting 8 segments. And at that time, Roads used to be 87% of our order book. Today, it's only 44%. Geographically, as well speaking, during -- before IPO we were at that time only in 12 states. Now we are in 19 states. At that time, Madhya Pradesh used to be almost 40% of our order book. And now it's just only 8%. So from being like I said a road-focused company in fewer states, today, we are a pan-India infrastructure company, working across so many sectors. Next slide is about the mining business. So we only entered into mining in year 2016. We have 2 large India contracts that the company has won. These contracts put together gives us a revenue of -- on its full capacity, gives us a revenue of INR 2,000 crores per year annually for the next 25 years. Now to put it into context, that means almost 20% of our revenue, looking at the current picture, will be coming from long-term contracts as we go forward, without needing to bid again and again, with a stable client, which will be Coal India [ a wholly owned ] subsidiary. If you go to the next page, the growth in mining business, how it's grown at almost a 90% CAGR over the last 3, 4 years. Next page, Page 20. Important feature on the last few years, like we mentioned, the divestment of our road assets. This has been a very core strength that the company has demonstrated again and again, that we have successfully managed to churn our capital and sell our projects. It speaks volumes about the quality of projects that we made and the pricing that we take in these projects. First, it was [ selling 24 assets to shane ] then [ private cue ] and now [ 7 architects ] with our final investor [ that we're selling ]. So if you look at it the 12 assets, which we have sold are in advanced stage of monetization. Because of this new change in the NHIS clause of COD plus 6 months, the company, since we are in advance of completing all these projects, we will be getting almost INR 2,000 crores of capital -- equity capital that we'll invest in these projects coming in the next 2 financial years. It is very important. Almost INR 2,000 crores of capital is coming back into the company's balance sheet over the next 2 years. In FY '22, we're expecting almost INR 900 crores. And the year after that, almost INR 1,100 crores of capital to come in. Now this, what is this going to lead to? And how will we look after that? Number one, it will lead to debt reduction at the stand-alone level. It will also provide us capital for further growth. The asset-level debt doesn't remain with us anymore and get transferred. And finally, there is a jump in return on equity because all this equity comes in. Even when we sold our first tranche to [ shane ], they will jump in return equity. But for the next 2 years, it will give you back to our EPC business where our return on equity will be upwards of 20%. So that is the most important thing, that next year, that's how it will look. Going forward, for the next -- to the next slide. Now what do we envisage DBL to do in the next 4 to 5 years? What is our vision for that business? So we have always been a young, brash and a very growth-focused company. So number one, most important for us, what we see is that we will continue to grow at the 15%, 20% rate that we've envisaged. So that we develop in the next 4 to 5 years. That is where we're looking at growing. This doubling of revenue will come through different, different sectors; different, different geographies; different, different clients. That's how this revenue will come through. While we are doing that, our focus will be on asset utilization and asset turnover because we'll be making only selected capital expenditure going forward. And what -- when we go into different sectors, we will be looking at long-term partnerships with [ you know present ] investors for our asset business. So we'll keep churning our equity and make sure that the equity return remains good. Finally, what all of this will do is that our debt will continue to reduce year-on-year, as has been demonstrated in the last few years as well. So that's our agenda for the next 4 to 5 years, and that's how we did. Going forward, now coming to the stand-alone financial highlights, let me give them. For the quarter 3 numbers, revenue has increased marginally by 3% from last year same quarter to now, from INR 2,389 crores to now INR 2,472 crores. The EBITDA reduced by 4%. This happened primarily because of the price increase, that the escalation -- the price increase that has happened for our key commodities. The inflation will come only later. But for now, there has been that impact. The forecast reduced because of reduction in EBITDA and because of increase in taxation. Similarly, going to the next slide, the results coming in for the 9 months. Even in the COVID era, while we've been managed to level up to our revenue, obviously, the EBITDA has been hit because of COVID, the original COVID, and then later, like I mentioned, for the reasons right now, impact -- has been impacted because [ of reduction ] in EBITDA and taxation. Next page, 25, 26 is a detailed snapshot of the [ tandem ] profit and loss. Same goes for 27 for 9 months. 28 is our stand-alone balance sheet, snapshot for that. 29. Basic, the cash flow during this COVID year -- in this quarter, we've generated a strong cash flow of INR 133 crores-plus, which is taking a total cash flow this year for INR 200 crores-plus. So strong cash flow generation from operations. Next slide, 30, is the net working capital days. So there has been small looking number, very slight increase, but we expect it to reduce further in the final quarter. Next slide, we're just giving a net debt-to-equity ratio outlook. See we have promised our net debt to equity to bring it to about 0.8 at the end of last [ financial year ] and we've done that. But what has not happened, we had been looking to increase that -- I mean to reduce that ratio even furthermore to about 0.65 or so in this year. But unfortunately, because of COVID, we had to change and take additional liquidity measures. Next slide is about income tax, you know that rates. After that, it's about the consolidated numbers and then the company overview. So this is all from my side, and I look forward to all of your questions. And I will now hand it over to the moderator.

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

And congratulations on a good set of numbers and especially on building a good diversified order book. So my first question is around the -- on [ the service ]. It just sounds -- what kind of revenue guidance is possible for FY '22? And beyond that, given the large order book, if you can throw some new light on the revenue expectations for FY '23 onward?

So for FY '22, our guidance would be 15% to 20% growth from our current numbers, that would be our guidance. And going forward also, with the strong pipeline that we have and the strong pipeline that we envisage coming in the next year as well, I think we should expect a similar kind of number.

Okay. And what was the estimate for FY '21, sir?

FY '21, we should be around the same number as last year because of -- so even if you look at the current 9 months, it's around the same number. So we should be expecting around similar numbers.

Okay. Understood, sir. So [ can you on the Siarmal open cast project, what is the kind of CapEx required from outside? And when do you expect the revenue to start flowing in? And what could the EBITDA margin possible in this particular project?

[ Supposing a round equity ] requirement is the INR 400 crores in next 4 years. [ Those can be start ] then we start over. Then equipment investment [ about ]. Finally, the major equity investment comes in the fifth year for the coal handling plant. Our EBITDA in other parts are similar numbers like the roads.

So CapEx [Foreign Language] CapEx [Foreign Language]?

Total CapEx is around INR 900 crores, equipment and INR 400 crores, consumer. The coal handling plant is altogether in the next 6 years, starting from the 2 years to the 6 years.

What is the mining [Foreign Language] escalation clause [Foreign Language]?

The escalation clause, we do normally WPI, CPI to indexes, okay, fuel consumption is [ component and all that ] [Foreign Language].

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

Congrats for a good presentation -- detailed presentation. Sir, first coming on the revenue front, despite now everything is at the normal level, why we are saying that it would be a flat for FY '21? Already, we have done kind of INR 1,500 crore revenue. So can't we expect at least a 5% kind of or 3% to 4% kind of a growth in FY '21?

So we give guidance almost to level [Foreign Language] normal [Foreign Language] overall [Foreign Language] that is a normal [Foreign Language] initially after Q1, so they come up with [Foreign Language] 9 months market level of product, we are expecting either the FY '20 numbers [Foreign Language]. Therefore, we it's good to say, the almost FY '20 number, we'll achieve.

Okay. And sir, how -- in terms of the bidding opportunity, how many projects have we bidded, particularly in Road and any other sectors also? And how much more inflow are we expecting and how much are likely to get from the HAM?

[Foreign Language] building pipeline [Foreign Language] INR 20,000 crore project to be [Foreign Language] almost [Foreign Language] about INR 6,000 crores this year. INR 15,000 crores in projected. The MHI or other security pipeline, almost INR 1 lakh crore the bidding pipeline is already [ bit flow, okay ] So INR 40,000 crore is from EPC and INR 60,000 crore INR is from the HAM model. Probably lumpy pipeline up to March.

Okay. So can we expect at least INR 4,000 crore, INR 5,000 crore order in...

We are expecting around middle of the guidance, we have the key end of the year [Foreign Language] order book [Foreign Language] net order book. So it should be around INR 28,000 crore to INR 30,000 crore net order book on [ that is caba ]. We required around INR 5,000 crore to INR 7,000 crore more orders in the next 2 months.

Okay. Okay. And sir, on the date front and particularly on the HAM front so far, we missed the slide on the stream plus the detail that you are giving in terms of the investment on the HAM front. So on both fronts, so how much already we have invested in this [ well ] HAM project? And how much more then left in fourth quarter in '22, '23? And as you are mentioned that we are closing the deal for the remaining projects and total, we are expecting a INR 2,000-odd crores. So total, if I am not wrong, our investment for these projects were around close to INR 2,085-odd crores and we are expecting the INR 2,000 crores, so slightly lower than the price to book?

So after light price to book, quality of numbers [Foreign Language] [ Amara total MANTA ], we are about price to book there. I think the number that you want...

[indiscernible] INR 2,085 crore [ cap ] as per [ 1,612 ] projects method, INR 500 crores, around 5 new projects [Foreign Language]. So in this year, '20, '21 and 9 months from the INR 266 crore [Foreign Language] projects over the remaining Q4, around INR 166 crore investment currently. Or '21, '22 equity investment [ in reserve, of ] that is around INR 367 crore.

Okay. Okay. And broadly, our CapEx, we have already done a INR 200-odd crores CapEx in 9 months. So I think we were targeting the same number for full year. So how much left for the fourth quarter and the next year, how much CapEx needs to be done?

So [ be under ] INR 160 crore [ a key adds up to ] -- in Q4, it will be around INR 200 crore only. And then next year, only there will be replacement CapEx that will be in the range of INR 50 crore to INR 100 crore.

The next question is from the line of Priyankar Biswas from Nomura.

Rohan. And so my first question is regarding the diversification that you are speaking of. So can you highlight like the diversifications that are taking place, like going into -- more into MDOs than rail projects and possibly to rail electrification like that. So what is the scope of these diversifications? And what are the synergies that are enabling us to do this diversification? And eventually, what are the areas that are still there from a point of thinking, like what new areas can you get into? Maybe transmission, maybe, let's say, some other things digitalization. So if you can highlight on the plans behind that.

Thank you, great question. So to answer what -- how are we thinking about diversification. First, I think we need to understand what DBL is as a company. What we are known for is our execution capability. Now our execution capability includes our capability to run our equipment, owning our equipment and then having people on our rolls who are able to do it well and then being able to monitor it well. So that is our key capability. Our people management, our equipment management and our project management. So those are the skills that we look at. Now when we think of diversification, the way that we went about diversification was, when we first started diversifying, we thought of okay. What are the areas where similar equipment will be used. So that's how we thought about our full diversification, which was very complementary to our current line of business. Secondly, we thought what are there available in our geographical proximity. So that's how we thought about it. The third way, key aspects of diversification services, the industry is where we see future potential, where is the growth at. So this is how we think about diversification. Now coming to your question of how our diversification has panned out over the last few years including mining or this -- now mining, we started with overburden removal. Now why overburden removal? Because as a company, we were already mining and crushing stone, 100 million tons of [ mill ] stones every year. So we started with that. And going from onwards from there, we kept on -- because that was a key thing that we build on. We did the same for our mining business. From there, we went into backwards and forward, and we wanted to extract full [ iled ]. That's how now the MDO projects have come into place where we want to be in one place where we will have long tenure contracts where bidding is not happening every year. And whenever we invest in our equipment, another question that you guys always ask is [Foreign Language], where is the next project where you will shift your equipment to, what if order moves off, what the challenge with your larger equipment line. So a long tenure contract removes us from that risk of having to move our equipment or not having visibility for business. So that's how we went into the long tenure contract as well. The shorter tenure contracts, whether that was irrigation, airports, bridges, metro, those are all complementary or visibility like you spoke about, where we'll go and we've won a railway tunnel. We are doing electrification work as well now. Going forward, we will be -- we are bidding for those particulars. So all these are areas where it's similar equipment, similar or same manpower and similar project management skills. So these are basically -- we are -- this is basically our core focus on that. Did I miss out on anything, because you asked us a lot of questions. So I apologize if I missed...

That broadly answers it. So on a related basis, so what I wanted to know, like this coal handling plant that you are talking about. So what exactly is the business model here? Like, I understand it's a 25-year contract. But like, can you just quantify it a bit more, like what essentially is this contract like -- and like what kind of IRRs potentially, this mix? I mean, some details on this type of contracts.

So more than happy to explain to you remotely, because this is a longer discussion. The IRRs that we're expecting -- the equity IRR that we're obviously expecting are in high teens-plus. And in fact, are core to that. And the good thing is whenever you're bidding for these large contracts which require investments, there are very few bidders. So even when we went into this, there are 3, 4 bidders only which are actively in that space. And besides being -- just being able to bid for it, you also need to have that expertise. So not only did we have the expertise, but we were also capable to bid. So that's how we thought about it. And in terms of understanding it in greater detail, I think we'll arrange a call separately. The coal handling plant will be set up after [ at the 6th ] year, like Devendra mentioned earlier as well, and that will then be taking the coal to the nearest point where we will deliver to the government. And then -- so it reduces -- so this contract and a lot of interesting things, for example, the government of India supplying the electricity that is part of the contract, so reduces our cost significantly, and we don't have to worry about those escalating. So separately we'll explain to you in detail about that contract.

The next question is from the line of Alok Deora from Yes Securities.

And congratulations on good numbers. Sir, just wanted to understand, since we do a lot of in-house execution. In fact, all of it is largely in-house. And so we also hold a lot of inventories. So how has the recent cap in commodity prices impacted you? And can we see some sort of minor slowdown in execution in Q4 because of still the commodity price are more stabilized? Just wanted your view on that.

So of course, you have rightly pointed out, there is an increase in the commodity prices. But as you have mentioned, we can slow down our pace of execution, but we cannot slow down the pace of execution because they are a given trader for the project, okay? And explanation built up in the contract. So there is no need of worry for the price increase because we get the escalation in the contract. There may be some certain increase may -- there may be loss of some price increase, but that is not the major one. So we'll let more go with them [ they will have all the completion ].

Sure. And sir, when Road segment was a large part of the order book, we were always mentioned maintaining that while we will be diversifying, but Road will still continue to dominate. So now, as you mentioned even in the opening remarks that Road is now -- the order book is now well diversified. So what -- just wanted to understand what is our strategy now as far as the segment diversification is concerned? And how do we see the share of roads moving, considering that a lot of projects are going to be awarded in the Road segment?

Thank you, [Foreign Language] proportion [Foreign Language] order book begins to lessen to 50% is the Road orders. Diversification, fundamentally [Foreign Language] road projects [ we have been credential ] [Foreign Language]. So [Foreign Language] there are a lot of segments are that [Foreign Language]. So basically, [ our main ] thought [Foreign Language] in terms the number was a [Foreign Language] proportion 60% of [Foreign Language]. Always [Foreign Language] metro project [Foreign Language] special technique [Foreign Language]. So fundamentally, proportion [Foreign Language]. [ Second ], [Foreign Language] the proportion is less than 50% of the roads.

Sure. And sir, the last question, did you comment, what would be the mix in terms of segment? I'm sorry, you have already replied, but I have missed that point.

[Foreign Language]mostly were Road projects [Foreign Language], 9-month [Foreign Language] other segment [Foreign Language] 5,000 to 7,000 of [ target ] per day, that's in the road segment.

The next question is from the line of Rohit from Antique Stockbroking.

Sir, my question is more to do with your RBL project. I understand it's a railway project. And how has been your experience with it, because there is a popular perception that railway is not a typically good paymasters like your NHAI kind of agency. So what exactly is the experience so far? And will you be pouring much more into this kind of projects?

[Foreign Language] project [Foreign Language] budget allocation [Foreign Language] government, the priority according [Foreign Language], for example, [Foreign Language] no mobilization [Foreign Language] one-time payment [Foreign Language] budget allocation [Foreign Language]. So particular [Foreign Language] railway project [Foreign Language] budget INR 3,800 crore [Foreign Language] project win [Foreign Language]. It's a very clear [Foreign Language], Prime Minister Modi [Foreign Language].

Sure, sir. Sure. So my [Foreign Language] bottom-up approach for working digital project-specific update [Foreign Language] generic approach [Foreign Language] conventional doubling electrification [Foreign Language].

No, no, no. [Foreign Language] bidding strategy. [Foreign Language] funding [Foreign Language] order book [Foreign Language] bringing in most of the orders from the [ rest of ] government. I'm not [Foreign Language] statement at the company are there. [Foreign Language] the whole issue [Foreign Language].

Clear, sir. Our second question is more on the asset monetization front. If the [Foreign Language] policy, the [Foreign Language]. So what exactly is the [ total at this ] stage like [ on those ] monetization front? Any picture on that?

Actually, monetization [Foreign Language] to financial [Foreign Language] will get around INR 2,000 crore, [ 100 million ]. Already, out of 12 parts project [Foreign Language] that is very advanced [Foreign Language].

The next question is from the line of Anupam Gupta from IIFL.

Sir, just one question on the coal mining projects, which you have begun, which are 25-year contracts. While they give you the visibility of steady revenues, you are required to invest significant money. So INR 1,100 crores, INR 1,300 crores, you mentioned will go from year 2 to year 6. But if you see the overall coal scenario, are you comfortable with holding the project for 25 years, assuming certain risk to coal offtake itself in the country later? And how is that covered in the contract itself?

[Foreign Language] contract [Foreign Language] particular contract to MCL [ commodity ] [Foreign Language] coal free contract [Foreign Language] linkage tie-ups [Foreign Language] 25 years [Foreign Language] project or viability [Foreign Language] next 25 [ are here ] already [Foreign Language] investment [Foreign Language]. Again, MCL may happen land acquisition on Forest [Foreign Language] already [Foreign Language]. So it was unlikely is the [Foreign Language] contract provision made, contract provision of Saki in particular, limits [Foreign Language] they will pay the charges to us.

Okay. So in your view, it is largely covered from that time?

Absolutely.

Okay. Okay. And secondly, sir, just one question. Margin, you mentioned would be similar. But overall, do you -- the trend which you have seen, at least for the last few years is the margin has contracted a bit in your EPC business. Because of a diversification, do you see that trend as continuing? Or do you see these margins to be sustainable?

Sir, the margins will continue to be at the 16%, 17% range. Now going forward, because road business was larger, it's part of our business earlier where you have early completing bonuses as well. In the other nonbusiness, the businesses that we're doing, there is no concept of early completion bonus. So hence, we're giving you this kind of guidance. So even when you look at the margins earlier which we had, we were limited to fewer states or more to 1 sector. Now it's a much more diversified group that we are talking about. So but the margins as what we feel in terms of they should remain around in the same 16%, 17% range.

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

Sir, a question, [Foreign Language] the irrigation of [Foreign Language] work has started [Foreign Language]?

Already work is started [Foreign Language] tunnel we're drilling the [Foreign Language] already work is started.

[ On Singrauli in view me ], are we trying to get more contract? And is there any bidding pipeline which Coal India has? Or is it -- or there's nothing in this year -- this fiscal year anymore now?

The pipelines [Foreign Language] compare as a [Foreign Language] 100% [Foreign Language].

But [Foreign Language].

[Foreign Language] the time for a bidding process is very long. It will take almost 4 to 5 months for bidding.

Anything which you're bidding right now, sir? Anything on the core MDO side?

So not now.

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

Sir, what is the outstanding balance for mobilization advance retention money and unbilled revenue as in December?

As far as mobilization advances is concerned, this is INR 1,200 crores [ I think I'm certain on that ]. And as far as retention money is concerned, it is INR 700 crores.

Okay. And unbilled revenue?

Unbilled revenue is in the range of INR 500 crore.

Okay. And broadly, whatever the new orders that we have received, how much more mobilization advance are likely to receive in fourth quarter and in the next year?

Fourth quarter, the mobilization advance will be in the range of around INR 150 crore in the Q4.

Okay. Okay. And sir, [ on stream it was ] INR 102 crore we were expecting by third quarter. So how much is now left, how much do we have due still?

Now remaining consideration is around INR 80 crore. So it will be closed in Q4 because some NOC was in the pipeline. So now we have resumed that pipeline. So now in this quarter, it will be closed.