Globe Civil Projects Limited (GLOBECIVIL) Earnings Call Transcript & Summary

Got it. And sir, current order book includes like sizable projects such as INR 222.2 crores in Jajar International cricket stadium and INR 172.9 crores in Central University of Punjab project. So -- the total order book is represented by the top 5 projects?

So if you see, we only have 11 or 12 projects, top 5, I think, contributes to the 70% of the turnover because I mean, remaining 5 would be smaller or towards the end of the project. They were finishing last 10%, 15% is left, 20% is left. So if you compare with a INR 200 crore project to a INR 50 crore project, INR 70 crore project in Kanpur, they contribute less and INR 200 crores contribute more to the turnover. So yes, top 5 contributes to the 70% of our turnover.

Are any repetitive clients helping the company to qualify for a larger project size?

Yes, yes, we have. We have. In fact, DPS is a client. First, we did 1 project. Now we are doing 2 more. We are expecting to get 2 more projects from them. They are already coming up with the school and they have, in fact, told us you please participate and take it. And then CPWD repetitive client we are doing for the last 20 years and NBCC is our repetitive client, which we are doing like sixth project or something, fifth or sixth project right now. So mostly we have a repetitive client only. IIT also recently got a order book of INR 100 crores of IIT. And years back, we did a project for IIT Delhi. And now we have got again IIT Delhi. So and there were hardly 2 bidders in that project.

Okay. One last question regarding trade receivables. As we see trade receivables and inventory increase in FY '26, along with the business case. So what initiatives are being taken internally to improve the guest conversation cycle?

Most of the billing is done in fourth quarter only. In quarter 4, we have completed 3 projects. We have NIT project we have completed in March 2026. Another project in the same campus we completed in March '26. So trade receivable has increased because the final bill and pre-final bill was there for these projects, and it always takes time to realize payments of the final and final bills. At the last stage, it takes time to reconcile them to complete the payment. So that is why the trade receivables has increased in March and inventory also because we have procured a material in huge quantity in February and March due to war, the prices were going up for many of the items, tiles and also we procured material in advance in February for the Bhatinda project. So that is why inventory and trade receivable has increased in March quarter.

Sir, in this -- any new projects mobilization in advance like new project starts, you receive any advances...

Yes, we can take mobilization advance in the newer projects. We have just received a project. We can take mobilization advance, but we have not upgraded the mobilization advance till now. It is an interest-bearing advance. So we can avail by giving a bank guarantee. So we believe that we have sufficient funds with us to execute the project from our funds. If we require at a later stage to take the mobilization, we can take. There is a clause of 10% almost in every project to take mobilization advance against bank guarantees.. We have not taken a mobilization advance in Bathinda also. So that is as per the requirement, whether we want or we don't want...

Got it, sir. Sir, one last question. As I see, the company has been listed and having crossed INR 1,000 crores consolidated order book milestones during this journey. So what will management consider the next major milestone?

Next milestone?

Yes. So you already consolidated INR 1,000 crores, correct?

The next milestone is INR 1,500 crores, which we are targeting to maybe end of the year, financial year, we have an order book of INR 1,500 crores. This next target is -- and we always believe in the -- getting good projects at good EBITDA. So that's still the focus and still the -- not go out of the top line, but also the top line and the bottom line.

And sir, any geographical expansions or margin improvement we are looking in...

Yes, we are building the project in Tamil Nadu and when we have built the project in Bhatinda -- Bihar, Bihar, sorry. So these are 2 states, new states, which we haven't worked there and we have tried to build. So yes.

Our next question comes from the line of [ Akash Agarwal ], an individual investor.

First of all, congratulations for your Q1 results. I have a bunch of questions. I know what are the future plans right now, management is planning for next 2 to 5 years. They are expanding into the new segment or they are also planning for this government or a government project?

So next 2, 3 years, any segment, I mean, we have some work in sports infrastructure. And we believe the country, there is going to be a huge work in sports infrastructure. So we are trying to build eligibility criteria with already done 2 small projects of INR 50 crores and now INR 200 crore project stadium we are doing. So if we are going -- maybe after completing this project, we'll have eligibility of bigger project in sports infrastructure. So that's the segment we are relying on, we are heavily betting on. And hopefully, we will -- with the country, a lot of projects of sports infrastructure are going to be there. That's the target for next segment -- new segment to be added.

So new segment to be added in the future.

Yes.

So I just want to know that the inventory has increased INR 162 crores something. So how much of this represent working progress like versus material in the projects? And second while the working capital increased faster than revenue? Should we expect this trend to continue as the order book grow?

Sir, EPC projects require higher working capital. That is the main objective we have raised the funds through IPO because for EPC project, high working capital is required. And just after the IPO, we received 3 orders and we deployed working capital in these new projects, out of which one of the projects started a little delayed due to some permissions from the statutory authorities. So otherwise -- so that is the reason that we are able to achieve faster growth in our Bhatinda project. You see within a year, the project was awarded in August same time in 2025. So 12 months, we have completed the complete structure and we have procured material for that project. So that is a project we will be able to achieve before the time line before the initial time line. So that is the key factor for a company -- for a construction company to get more margins in EBITDA if they achieved complete the projects within the time. And inventory was also increased, as I told that due to the war situation in February, March, the prices of the metals and all were going up. So we decided to procure more material during the February like tariffs and multiple things were there. So we procured material for our projects. So these material procurement helped us to achieve good turnover in quarter 1 also as compared to the quarter 1 of the last year. It is difficult in the first 3 months, construction industry doesn't work much, but we have procurement, we have inventory. So we can -- we achieved a better turnover in quarter 1 also. And this in quarter 2 also, we are running at a good right now. So till now, there is no such problem like now there is a rainy season. So we decided to -- in April, May, June to complete the stadium basement work well just before the rainy season starts. So we achieved that in before the 30th June to complete the raft work in stadium so that the work doesn't get hampered during the rainy season. So these are the things we are trying so that we can run faster and the projects doesn't get delayed.

Like can I just give some snapshot like what percent of the current revenue like we get from our top 5 customers. So all are the government infrastructure projects?

Yes, majorly we only have a private project, Delhi Public School and Cricket Stadium. This is -- otherwise, all others are government players only.

From like Cricket stadium overall order book, so how much of these contribute to our revenue?

Right now, up till date, around INR 30 crores, INR 35 crores is the total revenue from the Cricket stadium only. So because the project was delayed due to some approvals, we could not start or get the revenue in last year. From this quarter 1 only from the March only, the project has started scaling now, and we are working fast on this project. And this project has a capability to get completed in next 15 months.

So the company has some plans for this concentration of the government project. But in government projects, there are lots of things like payment and approvals and project time, it will take some time. And in private projects like we get payment and the project time will be less. So we can improve our cash flow. So are there any plans company right now planning for into the private sector?

We have a few projects and still, I mean, we have a few projects in private sector, but we are trying to balance the order book of private and government, not keeping all projects in private and not keeping all government. And approvals for -- if you say the approvals are not faster in private. The same approvals are required for a private project and same approvals are required for the government projects. It's just in the private project, maybe they get the approval beforehand and then they do a tender and government tender, they give it in our scope. So when it is in our scope, we make it faster and we try to get approval faster than what before. Initially, previously, the government used to get themselves approval. Now with EPC being executed, the approvals are in our scope. So we try to get it faster, what they used to be an older story when the government gets difficult to get approval from them. So yes, but we still have a balance between the government and the private sector.

And when we choose for a private, we always see if the project is like a funded project like Delhi Public School, they have ample funds for the for their schools. So fund is not an issue there. Again, in the stating also the issue for fund is not a concern for us. So in parallel, we think that we should build where the funds are available and there is no problem in getting the funds.

Okay. Understood -- so these margins will be sustainable for the next 2, 3 quarters?

Come again, sir?

Margins currently, we have a good margin. So this margin will be sustainable for the next 1, 2 years?

Yes. We are confident that the margins are sustainable for next couple of years.

So right now, we -- how many receivable days...

Receivable days? Receivable days are a little high nowadays because final bids are still pending in our 3 projects like NBCC Aligarh project and Telecommunications India Limited, 2 projects we have completed, but the funds are -- final bill and final approval, all things are pending. So that is why our receivables days are a little high nowadays. And we are expecting to complete the Aligarh project billing by 15th of September. And by 30th September also, we will be able to close the telecommunication projects also. And one of the -- otherwise, all other projects like Bhathinda project, Jhajjar Stadium, these are routine sites where it takes around 30 to 40 days, Delhi Public School also. It -- they all take 30 to 40 days after the billing to make. These are running sites. And in any of the projects, there is no issue in any of our projects about the funds receivables. Receivable days are longer, but the government projects have the safety that funds will come after some day, but they will come.

So cash flow will be not affected in that case?

Yes, little delay where when we assume that these delays are normal in our business, at least the payment is safe...

Understood. And last question is like right now, what the current order book and how much is going to exit in this year? And how much we are going to add new project?

So right now, the current order book is around INR 700 crores, and we at least like plan to add another INR 500 crores in 6 months, 3 months or maybe before the year-end. So that's a target to add INR 500 crores at least.

At least INR 500 crores. And already we have bidded for INR 800 crores projects. And every month, we are now bidding till we get new orders.

So we are right now, we are around INR 700 crores, and we are planning to add INR 500 crores.

At least INR 500 crores, so that it will come around INR 1,200 crores, INR 1,300 crores. Then again, if a project comes with specific criteria, less bidders, we will always try and get the project.

With the INR 700 crores, how much we can expect this execution will be done in this year?

So as told, we believe that we can achieve growth around 10% to 15% with these projects only. Apart from any new project, with these projects, we can achieve a growth. Still, again, if we get a new project, it depends on the new project. Generally, it takes 3, 4 months' time at least to start and start getting revenues. So Bhathinda was a project from where we got revenue from second month only and Haryana Cricket Association, it took around 7, 8 months to get the revenue. So we always believe that it takes 3, 4 months' time after getting a tender. So with this order book already, we are heading for -- we are looking for a growth of 10% to 15%. And we will add some -- we will also get some turnover from the new projects also in this year.

Okay. And like in FY '27 revenue, like how much will be the contribution like INR 700 crores of order book will be get in FY '27 revenue? -- execution, how much we are going to execute this in FY '27 in terms of revenue?

Around another INR 350 crores, INR 300 crores, INR 350 crores, I think we can achieve just every month, we are doing now INR 30 crores, INR 40 crores. So we can achieve INR 300 crores to INR 350 crores. And in the last quarter, the projects, we get the maximum revenue as well.

Around INR 300 crores to INR 350 crores.

Yes.

Yes.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Gautam Nagar from EquibridgeX for the closing comments. Thank you, and over to you, Gautam.

Thank you. On behalf of Globe Civil Projects Limited and EquibridgeX Advisors, I thank everyone for taking the time to join today's earnings call. If you have any queries or you can connect us at info@equibridgex.com. Thank you once again for the joining. Thank you, sir. Thank you, everyone.

Thank you.

Thank you, team. Thank you, Gautam. Ladies and gentlemen, on behalf of Globe Civil Projects Limited and EquibridgeX, that concludes today's call. Thank you for joining us, and you may now disconnect your lines. Goodbye.