Dilip Buildcon Limited (DBL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Q1 FY '24 Earnings Conference Call of Dilip Buildcon Limited hosted by Essential Technologies Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Jill Chandrani. Thank you, and over to you, ma'am.

Thank you, Mr. Aman. Good evening, everyone. Welcome to Dilip Buildcon Q1 FY '24 Earnings Conference Call. From the management, we have Mr. Devendra Jain, Managing Director and CEO; Mr. Rohan Suryavanshi, Head, Strategy and Planning; and Mr. Sanjay Kumar Bansal, CFO. Now, I request the management to take us through the key opening remarks. And after that, we can open the floor for Q&A. Now, I hand over the call to Mr. Rohan Suryavanshi for the opening remarks. Thank you, and over to you, sir.

Thank you, Jill. Good evening, ladies and gentlemen. A very warm welcome to all of you for the quarter 1 FY '24 earnings call of Dilip Buildcon Limited. The results and presentation have been uploaded on the stock exchange, and I hope all of you have had a chance to look at it. Before I begin, let me mention our standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interaction in this call contains or may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to some uncertainties, and the actual results could differ from those in such forward-looking statements. Let me now share insights on the macroeconomic environment of the sector and give you some company updates as well. Following that, our CFO, will present the financial update of the company, post which we will dive into a Q&A session. So firstly, from a global perspective, growth momentum is pretty stagnant, especially in manufacturing and investment segments in the face of moderating headline inflation with the southern core. Market expectations of future interest rates have gone up in response to a foppish policies set by central banks around the world. Equity prices have flattened and bond yields have hardened. At the same time, the big picture in India is that the manufacturing and services activity continue to grow with some sequential moderation in June in composite terms from a 13-year high in April and May. Coincident indicators for the construction sector have grown robustly, with cement production at a 6-month high on the back of a strong public spending on infrastructure and good private sector demand as well. The government's GST collection for the quarter was INR 462,793 crores. The real GDP growth for 2022, '23 was placed at 7.2%, higher than the second advanced estimate of 7.0%. According to RBI, the real GDP is expected to grow by 6.5% during the '23, '24. And according to World Bank and OECD, India is estimated to remain among the fastest-growing large economies in 2023 despite some sequential moderation in economic activity in June. Now let us look at some updates for the sector. For the quarter ended 30th June 2023, MORTH has constructed 2,250 kilometers and awarded 611 kilometers. [indiscernible] land acquisition notifications were issued and land acquisition compensation of approximately INR 1,178 crores were profits for the quarter. The government is ramping up its highway building target for the current year as it aspires to fast track infrastructure in a year of multiple state polls and ahead of the general elections next year. The government has set its target of quality construction to about [ 38 ] kilometers and plans to construct approximately 14,000 kilometers of national highways. The breakup of this is as follows: about 6,000 kilometers will be built by MORTH. About 6,000 kilometers will be built by NHAI and about 1,500 to 2,000 kilometers will be built by NHIDCL. The government also has plans to raise about INR 30,000 crores from TOT and INR 15,000 crores from Infrastructure Investment Fund on interest. The total capital expenditure of the Ministry of Road Transport and Highways for FY 2024 has been set at INR 2.58 trillion, which is an increase from the INR 2.06 trillion spent last year. And according to a recent press release, MORTH targets to achieve 91% of this CapEx outlook by December 2023 given the general election next year. So they will try to do that, and that's what they're saying. Now let me come to our company performance for the first quarter FY '24. Our order book was INR 24,051 crores at the end of June quarter. 37.1% of our order book comprised of roads and highways. Mining contributes 18.1%, irrigation at 17%, water supply at 12.4%, panel projects at 7.3%, metro projects at 5.7% and special bridge projects at 2.4%. So we are happy to inform you that we have a very diversified order book with orders in all these sectors are firing in every different state that we are working in. It is also great. And my pleasure to inform you that the current order floated by NHAI is about INR 1 lakh crores already, which we are expecting to build in the coming quarters. So all of these will be coming finally. Another sector also has a nice -- order pipeline coming in all the sectors that we're currently working. So our strategy of diversification has really helped us there. Let me also give a recap of some of the guidance that we were given on the earlier call. On the revenue front, we had guided that we will grow at about 8% to 10%. So we are targeting that. Our EBITDA, we have guided about 13%. We had also guided for a debt reduction of INR 800 crores to INR 1,000 crores. We are confident, and you will start seeing that sequentially from next quarter onward, but the larger reduction will happen in the final 2 quarters. Finally, we are targeting about INR 10,000 crores to INR 12,000 crores of new orders in this year, and this will be across all the sectors that we're working in. We are also targeting some moderation in working capital cycle days. We're thinking that about 8 to 10 days of reduction will happen there, that's our theme. And as for the CapEx, we have already mentioned earlier as well that we are looking to not do any large CapEx and only replacement CapEx. So even this year we're only targeting about INR 50 crores to INR 75 crores. Our target is to focus on becoming a debt-free company in the next 2 to 3 years, and that's where we are kind of focused on. So that's the biggest goal for the company, improving and strengthening balance sheet, along with keeping and continuing to do the diverse sectors that we work in, and setting our assets more and more. Now let me hand over our commentary to the -- our CFO, who will give you insights and comments on the financials of the company.

Thank you, Rohanji. Good evening, everyone. I welcome all stakeholders to our earnings call. Let me present the results for quarter ended 30th June 2023. During the quarter and up to the date as we speak, we have completed 2 projects, HAM projects, Pathrapali-Kathghora package 2 and Bilaspur-Kathghora section in the state of Chhattisgarh in their Bharatmala Pariyojana of worth INR 487 crore. The second project, Dodaballapur bypass to Hoskote section in the state of Karnataka under Bharatmala Pariyojana of project worth INR 1,278 crores on 21st July 2023. Further, during quarter 1 '24, the company won an irrigation project worth INR 699 crores for construction of Malhargarh. Construction of a project on turnkey basis in the state of Madhya Pradesh. Now moving from business to the financial performance. The revenue marginally decreased by about 1% in quarter 1 FY '24 on Y-o-Y basis from INR 26,215 million in quarter 1 FY '23 to INR 26,084 million in quarter 1 FY '24. This is due to delay in execution of old HAM projects. The EBITDA increased by 63% in quarter 1 FY '24 on Y-o-Y basis from INR 2,054 million in quarter 1 FY '23 to INR 3,348 million in quarter 1 FY '24. The EBITDA margin increased on account of better execution of the projects and reduction in the commodity prices. Now come to the profit after tax. The profit after tax increased by 321% in quarter 1 FY '24 on Y-o-Y basis from INR 198 million to INR 834 million in quarter 1 FY '24. The paid margin mainly increased because of the better EBITDA margins in the quarter. Now let me take you through some important balance sheet items. The capital expenditures during the quarter was at INR 430 million. The inventory decrease in quarter 1 FY '24 by $675 million from quarter 4 FY '23, which is mainly on account of reduction in WIP. Deep data increased to INR 18,633 million in quarter 1 FY '24 from INR 16,064 million in quarter 4 FY '23 on account of debtors booked at the quarter end. But let me tell you, these debtors were realized subsequently. The net debt-to-equity ratio marginally improved from 51 basis points in quarter 1 FY '24 versus 52 basis points in quarter 4 '23. The working capital days increased by -- increased to 75 days as of 30th June 2023 versus 70 days as on 31st March '23. This is mainly because of the increased debtors position as of 30th June 2023. And as I said, these debtors were realized subsequently. Now we can open the floor for the questions and answers.

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

And congratulations on improvement in the -- significant improvement in the EBITDA margin. So the first question is on the same. So definitely, we have highlighted all the guidance numbers, but just trying to reconfirm or trying to re-understand further. This EBITDA margin, 12.8%, and now we are seeing a 13% for this year. So from here on, we will be seeing a steady state of improvement or maybe the same run rate of EBITDA margin. That's the first question I wanted to understand.

Yes, Shravanji, the EBITDA margins will remain in the same -- and whatever guidance we have given. So we had given 13% to 14% EBITDA margin and the numbers will basically progress in that manner.

Okay. Okay. Secondly, on the debt reduction front and the asset monetization. So last time we have talked about the MORTH HAM projects we want to monetize, where we have a INR 900-odd crore kind of equity investment. And we are expecting the entire cash to be receiving this year. So what is the update? And is it the main -- if there is any delay in receiving the cash of this INR 900 crore equity invested will [indiscernible] rate reduction will get postponed maybe in 1Q or 2Q of FY '25?

Shravanji, that process is underway right now. We are -- that old mandate is currently running. And we are in negotiations with a whole bunch of investors. What we had stated earlier as well that we are only expecting about whatever money, only about half of it to come in this year or whatever the whole deal is, we are only expecting about half of it to come because all these projects as they are getting completed will only be able to transfer in a whole bunch of projects only 49%, and the rest 51% will be able to transfer the next year. So that money will also come accordingly with that. So we have accounted those calculations when we have given you this guidance of INR 800 crores to INR 1,000 crores. And we are, right now, as things stand, we expect everything running as per the time schedule that we had anticipated.

So let me add, Shravanji. On the equity investment side, FY '23, '24, the total equity requirement was INR 825 crores. Out of that, INR 268 crores is already invested in quarter 1. We have balanced INR 544 crores equity, which is to be invested into quarter 2 to quarter 4 and this equity investment will be basically mainly in the HAM projects, which is INR 503 crores and INR 41 crores in the coal project.

Yes. Yes. So we'll -- I will come to that also, will want to understand further that. So it's good that we are on track, and we will be completing the monetization. Second, just to understand in terms of the pipeline. So till now, though we have just received a INR 700-odd crore order inflow, we are looking at INR 10,000 crores to INR 12,000 crores. Definitely, we have said that for NHAI pipeline is 1 lakh-odd crore. But are we kind of confident that before the -- like maybe October and November, we will be able to get this much order.

Shravanji, as you are well aware, and you've been tracking the sector for a very long time, there were a lot of orders in our sector happened in the second half of the year and historically for every year that has been true. So we are expecting the ordering to continue in such a manner that will happen. And now depending on how much quickness the government does in different areas, we will -- we are looking. But the good part is there are healthy orders which have already been floated. And then there are a lot other that the government is in the process of floating in the different sectors that we -- I mentioned earlier that we work in. So our confidence stems from that. And also important to note, again, like I mentioned, that about almost INR 1 lakh crores of NHAI orders are already floated. So there is a huge pipeline of orders that is available. So it should come. So we're expecting to kind of build prudence that we've kept. We're expecting to get a decent amount of orders. And we are giving a very conservative guidance anyways of INR 10,000 crores to INR 12,000 crores that we have been winning every year anyways.

Okay. Okay. Just further to understand in terms of the 2 -- one is on the appointed date of our HAM we have already mentioned in the presentation, 1 more mining project is a big one or INR 2,274 crores OCP -- Amadand OCP. When are we going to receive the appointed date for the same?

So Shravanji, basically that project is delayed. So it -- basically, it is in delay we can say.

Okay. But no clear idea maybe next 6 months [indiscernible] we are going to get. So just trying to understand in the sense that these 4 HAM projects around INR 3,500 crore EPC value in order book and this INR 2,200 crores. So what we are looking at 8% to 10% kind of a revenue growth for this year. This quarter, we haven't done anything. So 13.7% or 14% ask rate is there for 9 months. So that's what I'm just trying to understand. Are we able to do that? Because -- and apart from this, is there any project delays in any of the other projects where there is still risk that this 8% to 10% that we are looking at can finally come into a 5% kind of a number by the year-end?

Shravanji, when we have given the guidance, you have accounted all what you have mentioned in there, okay? So we have accounted delays in the Amadand mines also. Amadand mines there is a delay on account of the land issues. So we are expecting that will be resolved soon, but we -- right now, it is very difficult to say anything about that. But whatever you have mentioned, we have accounted and we are confident that, that whatever guidance we have given for the revenue we will achieve that.

Okay. Lastly, on the HAM part, just trying to -- in terms of the equity of the fall season. So whatever the deal we have done INR 2,349 odd crores that we are going to receive and we've already mentioned that INR 676 crores we have received in cash. So further, how much more cash that we are going to receive? So just trying to break this INR 23,490 crores -- INR 2,349 crores into cash and in its time line, definitely, we have mentioned just broadly, what would be the cash and the InvIT number?

So basically, Shravanji, as you know, till today, we have received INR 868 crores worth InvIT units and from even last quarter, we are receiving only cash consideration. So in future, there will be no further units planned to be issued. So whatever -- I said we will divest from now, everything will receive in cash. So as on today, out of the 10 projects, 9 projects are divested. Out of 9, 7 projects, 100% divested, 2 projects 49%. The balance, 1 project 100% and 2 projects 51% will be done within this quarter, means August and September. And 1 asset for 51% in December [indiscernible]. So basically, with that, the entire 10 asset deal will complete.

Yes. That I understood. So till now, we have received INR 869 crores InvITs and now onwards, we are not going to receive any InvITs whatever will come, will come as a cash.

Right, right sir. Right sir..

Okay. Okay. And second, just part to understand the equity that we want to invest in 18 HAM projects so that definitely from the last presentation we have excluded this INR 987 odd crores so INR 978 million equity invested as on June, the number what we have mentioned in the presentation, what would be the like-to-like number as on March '23? So just 3 months before, what was the number? So just trying to understand how much equity we have invested for 18 projects in 1 quarter?

Shravanji, once again. So the 5 HAM projects, which is completed is removed from the requirement and actual equity invested. So I'm saying the equity invest -- the projects, the required equity was invested. So there is no reason to keep this equity requirement on the completed projects. So we removed from the requirement and invested equity. So INR 986.5 crores is reduced from the requirement and the similar amount reduced from the actual invested because those projects already completed. So balance -- so you can add up these same numbers what we gave in the last quarter presentation will match.

Okay. And broadly, just the DBL infra, that INR 750-odd crores, that number remains the same, the date number remains the same?

Yes, that number is the same. We have, in fact, paid down a little bit debt...

[Operator Instructions] The next question is from the line of Narendra from RoboCapital.

So my first question would be regarding the debt and equity that you are planning to raise. What's the reason for that? And regarding the equity raise, what would be the method of the raise, if you could summarize on it?

First of all, we are not planning to raise any further equity from now. If you are referring to our equity that is from the monetization, not -- we are not trying to raise any secondary or primary equity from the equity market.

Okay. So in the document that you have submitted, I mean, the results, you have said that consider the issuance of other shares. So that's -- what's that if I could understand that?

Sir, that is a permission that we have bought every year from the time we have come listed that every year as a prudent policy, a lot of companies do that, whether it's for equity raise, whether it's for NCD for all those bunch of different, different things that you see. It has been there for many last 10 years. So that is not an indication of us looking to raise any equity or raise any other funds. It is just an enabling clause, That's all that it is.

Okay. Okay. Got it. Secondly, on the top line plan. So we have seen excessive rains across India and in this quarter so...

Narenji, your voice is not very clear. [Foreign Language].

Right. is it okay now?

Yes, better now.

Yes. So I was saying regarding the top line, the -- we have faced the excessive rains across India in the second quarter. Has it affected our execution rate, and what's the effect of it on -- what could be the effect of it on our top line? Any indications that you have got?

Sorry sir, I didn't understand what you said. Your voice again wasn't very clear. What is the what on what top line?

Sorry, the rains damage that we have faced across India...

Narendra, are you using a handset, may I request to come on a handset, please?

Actually -- okay, no problem. I will rejoin the queue.

So Narendraji, if you are referring to the rain, heavy rains on various part of India, let me tell you whatever guidance we had given, the company will achieve those numbers. We are very confident.

[Operator Instructions] The next question is from the line of Janmejay Gandhi from IVG Trust.

I wanted to understand, sir, about the CRML project coal mine that you have got, what is the projection for this year and next year? And what is the margin are you expecting on this front?

Basically, the project has achieved appointed debt on 2nd January 2023. The project is in production. So this year, the first year of our operation, we will do a 7 million tonne of coal excavation and the revenue is around INR 550 per tonne. So basically, there will be INR 1,000 crore revenue and the margins would be in the range of 20% to 25%. And this project is in subsidiary.

So sir, it will be consolidated with the balance sheet, right? Sir, the financials of the performance of this company would be consolidated with the balance sheet?

Yes.

So the profitability also would be visible in the numbers in the consolidated performance?

Right. On full year basis, it will.

So are you -- have you -- for this projection for this year, have you included this profitability?

We have given the projection for the single loan number, for the consolidation.

Right.

Sir, and what is the growth are you expecting for the next 2 years in this coal mines?

Let me tell you, this coal mine has a fixed production plan. So first year, it was 5 million, then 10 million, then 16 million, then 25 million, then 35 million, and 6th year, it will achieve the optimum capacity, which is 50 million tonnes, and that will run for another 19 years. So in 25 years, we will excavate 1,091 million tonnes in total.

At a price of INR 550 per tonne.

No, no. The current price is INR 550, but the price is linked to the inflation numbers, the CPI, WPI.

Sir, I understand this year, it will be 1,000, next year, around 2,000 and henceforth according to the plan?

[Foreign Language] 10 million then that will be 500 million, and then next year 16 million, then 25 million or incrementally [Foreign Language]. This is the revenue guidance for that project.

[Operator Instructions] The next question is from the line of Prem Khurana from Anand Rathi Shares. You voice is not very loud and clear, please speak up a bit or use the handsets.

Is it better?

Yes.

So just book keeping first question. So just want to understand, did we receive any payments or cash consideration from Shrem during the quarter? And how much was infused by us in the hybrid annuities? Because when I look at the cash flow statement, it seems like we've infused INR 190-odd crores, but if I try and reconcile it with our presentation so the presentation suggest, I mean, we have received some payments because the cash received number, which was around INR 454 crores last quarter has gone up to INR 675 crores. So this INR 190 crores adjusted for the money that we've received or how does that work? Or is it that I mean these were part of loans and advances or not exactly compared.

So if you are referring to the slide of the presentation so it is up to date. So we have not received any money from the Shrem InvIT during the Q1, the money has been received during the Q2.

Okay. And how much did we infuse during Q1 in our hybrid annuities?

So total investment was INR 268 crores. So around -- mainly, it is in HAM only, INR 268 crores.

Okay. And how do I reconcile it with the INR 190 crores that you show in your cash flow statement, purchase of investment is INR 190 crores. And when I look at our balance sheet numbers. So I can see that increase in investments, INR 190 crores, but at the same time, loans and advances have come down by INR 70 crores, INR 80-odd crores. So how do I reconcile INR 268 crores and where does it lie in the balance sheet?

Prem, there are the 2 types of investment we had in the HAM project 1 [indiscernible] equity that is unsecured loan and one through the equity, okay. So you will have to reconcile separately so it will not directly reconcile with the cash flow statement.

Okay. No, because, I mean, generally, the money that you invest in the form of [indiscernible] equity forms a part of your loans, right? And loans seem to have come down during the quarter. So no worries, I mean I'll get in touch with you, and I will take it offline.

Yes, yes, because there is some repayment also on unsecured loan so that will not simply reconcile the cash flow statement.

Sure. And Rohan, just small, I mean, if you could help us understand a little better the pipeline that you spoke about INR 1 lakh crore of NHAI prospects that you talk about. How much do we intend to kind of bid for of this INR 1 lakh crore? And how would the split be between EPC and hybrid, if you could share these things, please?

Sir, I mean, the split is as we've done in the past as well, 60% target of about HAM and 40% EPC. But all these things are obviously very dynamic based on how the bidding is happening at that point of time, how do we face competition and a whole bunch of other factors, and a whole bunch of what projects we won in that area. And so it is very difficult to just state a number off the cuff, but that's there. The pipeline is looking healthy, and those numbers have been sorted. And even if you look at DBL in the last few weeks -- even last year, we bid for more than the overall project that we bid for other companies was for over INR 1 lakh crores that we had bid for. So our bidding team is geared and capable enough to handle and bid for that kind of orders in a year. So yes, we are fairly confident that given this is the year before elections, the government will try and put out as many projects as possible.

Sure. And just 1 last. I mean, when I look at the history, I mean, generally, whenever you get to a general election, the preceding year, generally, the [indiscernible] somewhat curtailed in terms of awarding activity because I mean you get to a code of conduct, which is there, generally, I mean, you get to see some slow down once the code of conduct comes into play. Would you believe -- I mean, you will be getting some other situation, which is there? I mean, most of these projects would have to come out either in Q2 or Q3 because Q4, again, I mean most of these government authorities would be busy with the election preparation.

Yes, sir, I think it's fair to assume that Q2 and Q3 should be heavier activity than Q4, as you rightly said. And the end of Q4, we come to about model code of conduct somewhere in the time of March or in that range, it starts kicking in. So hence, we also expect more to happen that. And whatever can happen before that. But given the high budget that the government had announced for infrastructure, the government probably when also when they announced because the capital expenditure for infrastructure went up from INR 7 lakh crores last year to INR 10 lakh crores this year. so which was a 40% increase in CapEx for infrastructure. So the government obviously had a clear intention on increasing the outland wanting to push out projects. And even all the commentary that you will see from the different departments has been in line with that goal. So we are hopeful that they should do it. Otherwise, they would have not announced such a large budget and also compound it everywhere.

And any update on Bharatmala Phase 2? Because I mean Bharatmala Phase I there's hardly anything left -- that's only for a couple of years that you would get to have something come from NHAI. So any update on Bharatmala Phase II in terms of...

I would not be the best person to be able to give you an update on that because that government schemes are done with the government having their own thought process. So I think the government will be a better place to answer that.

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

Sir, just continuing the previous question. So till now, how many projects that we would have bidded and where the bids have yet not open?

There are about 10 projects that we bid for where the bids have not opened up till now.

What will be the value -- broader value?

I think roughly about INR 10,000 crores. And this is in all the different sectors that we are doing.

Sorry, sir, INR 7,000 crores, did you say?

INR 10,000 crores.

Okay, INR 10,000 crores. And just though you mentioned in the previous reply that you are not the right person in terms of the Bharatmala Phase 2. But just a broader perspective of whatever your understanding in terms of. Is there -- in terms of the broader when the Bharatmala Phase 1 started, they started with [indiscernible] finally. So this Phase 2, do you think that this size would be this INR 5 lakh crores, 6 lakh crores, 8 lakh crores or now most of the road phase is kind of the remaining small, small patches are there so the value could be much lower.

[Foreign Language] There are enough and plenty of roads to be made in India, and there's a lot of upgradation to happen from, like we mentioned 2-lane roads getting to 4-lane and 4-lane to 6 and onwards. So all of that is happening and all states are also focused on building expressways and all. So there is a lot of work that is happening. For me to be able to comment on how exactly will the government teams pan out would not be -- I would not be the very best person. But we know the intent of the government. They have come out with a very detailed paper on the national infrastructure pipeline. They've mentioned in a lot of detail what they want to do. So I think referring to that and then looking at and having conversations with the government, it would be a better place. But even they will not be able to give you such a long plan. They can say, "Yes, this is all that we are intending to do." How and when and how much will happen and what pace will happen is also a function of the government that comes to power and what is their intent. So a lot of things that will affect that. But I think directionally, we are -- there seems to be a healthy pipeline of orders across infrastructure sector. And 1 thing I'd definitely like to highlight, right now, if you look at our order book, less than 40% is in the road sector. So it's not like we are dependent only on the road sector. And there are a lot of orders coming in all the different, different sectors. So our idea of diversification that we started is a journey that we started in 2015, '16, has come handy given how much competition we are seeing in this sector as well. So I think, for us, we are more focused on winning good quality orders across all the sectors that we're working in, sweating our assets, not making any large CapEx commitments, and that's lag for us.

Okay. Sir, again, in terms of just coming on the number on the HAM part. So once these 3 HAM projects, which is still to be transferred to a Shrem, once if that will be transferred in terms of the -- on stand-alone books, whatever the equity till now we are showing part of this INR 998 crores, how much will be removed from that?

You mean like the equity that is on the presentation right now, once you transfer these assets, how much will get reduced from here?

Yes, yes.

So basically, we complete the project. Whatever projects getting to be directed to Shrem Capital -- Shrem InvIT that is already removed. So there will be no further removal from the equity requirement. So all the projects already removed from the equity requirement. It was completed.

No, no, sir, I'm not saying equity requirement. I'm saying whatever we have invested and which is part of -- so INR 998 crores, what we are saying, we have already invested. So this is only in 18 HAM projects and the 1 Shrem projects is this already out of a stand-alone balance sheet. That's what we are trying to say?

Yes.

Okay. Okay. Got it. And so just further, just trying to understand, the Shrem InvIT is in the DBL infra books and not in the stand-alone books?

Sorry, we could not get your question.

Shrem InvIT, whatever we have received, it is shown in the DBL infrabooks and not DBL standalone books.

[Foreign Language] whatever we have removed the equity capital still there is in the book. But for the sake of clarification and whatever acting project is there, that is also in the book. And whatever we have not divested through the Shrem InvIT like Nidagatta-Mysore and the Patrapali so that is standing in the Buildcon stand-alone books also.

That's what I'm trying to understand, sir, on the number part so part 2 thing just whatever you said. So broadly, roughly how much equity share will be there, the 3 projects that we still have to transfer to the Shrem? On the standalone books, how much equity we are still showing?

Shravanji, can we take it separately because the equity standing in the books of DBL stand-alone also, and it is extending in the DBL infra also. So what will be transferred when the entire 10 projects will get completed. Okay. So if you -- we can take it separately and we can give you the numbers.

Okay. And then in DBL infra [indiscernible] what we are receiving is shown in part of DBL infra and DBL stand alone.

So basically, we have received units in DBL infra-assets and DBL both. So out of the total INR 868 crores worth unit, the total units in DBL infra-asset is INR 324 crores. And in DBL, it is INR 513 crores. So both the units are there.

The next question is from the line of Jiten Rushi from Axis Capital.

Congratulations on a good set of numbers. Sir, my question is on the order inflow target which we are talking about around INR 10,000 crores to INR 12,000 crores. Sir, what would be the non-road portion and kind of work we are targeting this year?

So basically, if you can see our order book breakup, the road is generally close to 40%. So yes, this year also we are targeting road close to 40%.

So it is safe to assume around INR 4,000 crores, INR 5,000 crores should be from the books?

Right.

And sir, on the -- what kind of margin do we expect from the non-road segment? Because now, as you said, steady state margin going forward would be 13%, 14%, but can we see any better margin coming from the non-road segment, which can take us our margin...

Jitenji, the margin guidance that we've given is a blended margin. And to give it from different segments would be unfair again, like I mentioned, every time when you bid for a project, it's based on multiple factors when we bid and the margins that we get. So hence, to pick out and give each existing would be difficult. Also, as part of our bidding strategy, it would be wrong to hand out different margin profiles of each sectors and give it to all our competitors as well.

I understand. There are corporates who give, but that's okay. My point was, from the non-road as you said INR 6,000 crores to INR 7,000 crores. But can you just give us a breakdown like what you are looking from the non-road because we have been present in many segments. So any particular segment or news we are targeting this time aggressively of non-road so we are going to focus on...

Sir, all those segments that we work in those are the segments that you should see orders coming in. There is no specific breakup that we, at this point of time, have to offer.

As you said NHAI has a strong price time. We understand that. Any pipeline you have identified like some metro or water supply, irrigation or we'll be bidding the way it will come. That is what I understand, right, sir?

All these segments have healthy orders coming, and we are looking at all of them.

And sir, in terms of competitive intensity, what is your view now? So we have seen competition in the past. So this year, what is your view, like do you see this intensity to remain or it will come down? Or how has been the experience so far like this year?

The intensity is dependent on multiple factors on the size of the project, smaller size projects will see more competitive intensity. It also depends on the type of the project, let's say, EPC versus HAM, EPCs have more competitive intensity. HAM has reduced competitive intensity. So different segments have different competitive intensity, different states have different competitive intensity. So it's not like a 1 size fits all. It all depends on where exactly are we working, what segment are we working, how big is the project, all of those different, different things? Who is the payment agency, like which agent [indiscernible] a project, whether it's a state government project, whether it's a multilateral funded project, whether it's a national government funded project, all these things change, all these have a different, different VC, different, different things happening and based on or multiple of these factors. So it would be very different. But yes, competition intensity in between has become much higher because of the government reducing the requirements for bidding, which we again brought it up. So there's some parity there, but there still very competitive in the lower range of projects in the lower cost of EPC projects, yes.

But sir, just last thing. So you mean to say that we will focus on central government and multilateral agency funded projects. That is something which we are focusing on so that the payments are not -- payments should be on time that's the idea, whole thought process?

We focus on multilateral and national government project and also state government project where the funding has been tied up or we know that there is a very good visibility.

Just last thing. Sir, you said INR 10,000 crores is the outstanding pipeline as of now, right? Where you are awaiting the results?

Yes, INR 10,000 crores of projects where we have bid, but the results have not opened.

And this is -- any segment you can highlight, breakup between the segments?

There are different segments that we bid in, sir.

[Operator Instructions] Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Rohan Suryavanshi for closing comments. Thank you, and over to you, sir.

As always, I'd like to thank all the participants for attending our conference call and all our partners for patiently asking all the questions that they had. In case we've not been able to answer some of your questions or you still have doubts, please feel free to reach out to our Investor Relations at Essential or our own team internally, and we'd be happy to help you with any doubts that you may have. Again, we appreciate all of you coming on the call, and I look forward to seeing all of you guys next -- in my next quarter call. Have a good happy monsoon.

Ladies and gentlemen, on behalf of the Dilip Buildcon Limited that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.