H.G. Infra Engineering Limited (HGINFRA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to H.G. Infra Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Ms. Saloni from Go India Advisors. Thank you, and over to you, ma'am.

Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the quarter 2 and first half of FY '26 operational and financial performance hosted by Go India Advisors. We have on the call Mr. Harendra Singh, Chairman and Managing Director; and Mr. Rajeev Mishra, Chief Financial Officer from H.G. Infra. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, moved in conjunction with the risk that the company faces. We now request Mr. Harendra Singh sir to take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Saloni. Good afternoon, all. I trust that this festive season has brought light, prosperity and joy to you all and your families. May the year ahead be filled with renewed energy, growth and continued success for all. Looking forward at H.G. Infra, our unwavering focus remains on building stronger connections between cities and driving our journey towards greater achievements. As we embark on this new somewhat, we reaffirm our commitment to elevating India's transportation infrastructure and advancing our initiatives in green energy, ensuring sustainable growth and a brighter future for all stakeholders. At H.G. Infra Engineering Limited, our journey spans more than 22 years dedicated to strengthening the backbone of India's infrastructure. In line with the nation's evolving needs, we are scaling for success by accelerating innovation and building smarter, faster and safer infrastructure solutions. Driven by our belief that infrastructure should reflect the dynamism and diversity of India, we are strategically entering in new sectors such as solar energy, railways and battery storage. This commitment enables us to diversify our order book and secure high potential projects in these emerging areas. Our proven execution capabilities, technical expertise and decades of industry experience position us well for the next stage of growth, allowing us to create a sustainable long-term value for all stakeholders and play a pivotal role in India's ongoing infrastructure transformation. I'm filled with pride at how far H.G. Infra has come and how much more we are poised to achieve. What began as a road-centric EPC company over 2 decades ago has now today transformed into a diversified infrastructure conglomerate, while road construction remains our core strength, and we have evidenced by 17-plus highway projects across 10 states having 66% share contributed by the highway segment out of the total order book, and we have strategically ventured into the high potential verticals such as railways, metros, solar and battery storage and recently into transmission infrastructure. Our diversified portfolio now includes more than 29 active projects spread across 13 Indian states, including 7 rail metro projects and our order book as of September '25 stands at INR 13,933 crores. Moving on to some updates on the infrastructure sector. Regarding road and railway, which is the transportation sector, under Vision 2047 as Viksit Bharat, the Government of India envisage a modern, sustainable and efficient transportation network that meets the needs of growing urban population. The focus is on decongesting roads -- decongesting the road through the expansion of expressways, smart traffic management and the development of integrated urban infrastructure. Improved road connectivity between cities and rural roads aims to boost economic growth and reduce travel time. Recently, under Bharatmala Pariyojana, over 26,000 kilometers of highway projects have been awarded and plans to develop 50,000 kilometers of expressway by 2036, '37. To ensure a seamless intercity mobility, and simultaneously, the railway sector is undergoing a major transformation with increased electrification, advanced signaling system and the safety upgrades to enhance speed and reliability. More than 45,000 kilometers of rail routes have already been rectified, and government targets 100% network electrification by 2030, and the major expansion plan are in the pipeline of adding more than 40,000 kilometers of rail track within the next few years. The expansion of metro network in major cities that promote public transport, reduce pollution and ease pressure on road traffic, but together, these initiatives form the backbone of a sustainable technology-driven transport ecosystem that supports India's goal of becoming a developed nation by 2047. Given the healthy project pipeline into the road infrastructure and rail, we remain optimistic about securing a share of upcoming opportunities, which should support our growth prospects in the medium term. Regarding renewables, which are solar based and green hydrogen, India's battery energy storage sector is entering a period of a dramatic expansion, expected to scale from just 0.2 gigawatts in 2024 to nearly 66 gigawatts by 2032, unlocking more than $5 trillion economy in the market. So this growth fueled by ambitious renewable energy targets, declining battery costs and the robust policy support positions BESS as a critical infrastructure layer for grid stability and round-the-clock clean energy supply. As battery storage transitions from early pilots to large-scale tenders and active deployment, industry leaders and new entrants are making bold investments across the value chain. At this pivotal moment, H.G. Infra stands committed to accelerating BESS innovation, contributing to India's energy self-reliance and shaping the future-ready grid that delivers resilient, sustainable power to all. As India transitions a move to green hydrogen as well as ammonia and with the mission to reach green hydrogen level of 5 MMTPA by 2030, H.G. Infra will continue to play a pivotal role in the same and has already taken first step by participating in the recent tender of Numaligarh Refinery Limited. This tender is for the purpose of green hydrogen of 10,000 tonnes supply. The large component of operational cost of green hydrogen comprises of RE power, which will have to come from combination of solar battery and hybrid of wind, wherein H.G. Infra already has secured, is in the process of successfully executing the same. The move to green hydrogen has a widespread strategic alignment with H.G. Infra's foray into providing clean energy solutions. Regarding the transmission and distribution, where the government envisages a robust modern and green power grid to meet rising energy needs with a major investment in high-capacity lines, advanced substation and HVDC systems over the next decade. Strengthen interregional links and smart grid adoption with integrate renewable energy, enhance the reliability and support a low-carbon economy. India's One Nation, One Grid, One Frequency has unified all regional grids, enabling 112,250 megawatts of interregional transfer for stable, reliable nationwide power. In FY '26, in this H.G. Infra aims to secure transmission and distribution projects worth INR 1,000 crores, already has secured 1 project valued at approximately INR 350 crores. We remain active in the transmission space and continue to participate actively into the upcoming tenders. As H.G., we are driven by strength, agility and steady growth, and we are poised to capture emerging opportunities in renewables, power transmission and road sector. And with power execution -- proven execution, technical expertise and industry experience, we are ready to deliver large-scale infrastructure projects that power India's total long-term development vision. Let me begin with a glimpse of our operational highlights. So as of quarter 2 FY '26, the company's total order book stood at INR 13,933 crores, comprising INR 9,163 crores from roads and highways, INR 2,720 crores from rails and metros, INR 1,620 crores from BESS, INR 132 crores from solar and INR 296 crores from transmission and distribution. The segment-wise road is having 56%, rails around 20% and renewables around 14%. As of now, the update on EPC project is the Ganga Expressway project, which is a very prestigious project of ours and around INR 4,800 crores, almost completed at 99%, and we are expecting COD anytime in the few months from now. The UER project holiday has been completed and handed over, open to traffic. The completion certificate is anticipated to be recently -- to be received shortly. The Jamshedpur elevated project is running smoothly with the current progress of 23%. The Neelmangala-Tumkur project is gaining execution momentum now and has reached at 48%. Regarding HAM projects, the Karnal Ring Road project has reached 82% completion, marking steady progress and likely to be completed in quarter 4 FY '25. As shared in the previous quarter, the provision completion certificates for Raipur Visakhapatnam project of OD5 and 6 already received and both projects remain close to completion, while AP-1 project, which is also nearing completion, where the provisional completion certificate with effect from May '25 being received very recently. These all projects of OD-5, OD-6 and AP-1 continue to be on track for 100% completion, that is COD in quarter 3 and 4 of this year. The Khammam-Devarapalle project, KD1 and 2, PCC already received, which are at 95.3% and 91.8% completion. Both the projects are expected to be 100% -- completed 100% by -- in quarter 3 and quarter 4 of this year. The Chennai-Tirupati HAM project is progressing well at about 28%. The appointed date, which is provisional appointed date for Varanasi Kolkata Corridor Package 13 has been received with effect from 30th September '25 and for Package 10 is expected to be received in this quarter only. The project progress of Package 13 is around 13%. The Kosi Parikrama Package 6 of Ayodhya, where the concession agreement is signed on 21st of June '25, the appointed date is likely to be declared in this month, and the project execution has just started. For the Narol Sarkhej project, the financial closure achieved in the appointed date declared on 19th of August 2025 and the execution stands at 4.2%. Now to railway projects. The DMRC project is nearly 92% completed and as per the scheduled time line is likely to be completed within this quarter. The Bilaspur RVNL project, which is around 75% complete, and we are targeting for completion in quarter 4, '26. And so the Kanpur railway station project is around 33%, where the progress is quite slow because of the CONCOR execution not yet started. However, we are expecting to pick now. The Dhule-Nardana has achieved 17.9% progress. The Gaya-Son Nagar and Karanjaon projects are at 15.4% and 13% completion. Progress across these projects was badly impacted due to abnormal rains, but is expected to pick in the coming quarters. The appointed date for the New Delhi railway station project has been declared at 6th of August 2025, and execution has commenced and the project is at an initial phase with 3.7% completion done. Regarding the solar project, during the last financial year, when H.G. Infra diversified into renewable energy sector by securing 183 solar power plants with a total capacity of 700-megawatt DC, out of which entailing a total EPC value of INR 2,243 crores excluding GST. The land lease agreement with the power purchase agreement with DISCOM being done successfully. And as of now, overall project progress stands at approximately 94.1%. With plant installation activity advancing largely as per the schedule, bearing 2 sites, however, which experienced delay because of the prolonged and the heavy monsoon conditions, and despite of the local challenges, the company remains confident of commissioning all plants within the contact time line in the next few months. This progress will also facilitate to draw down the remaining debt, thereby supporting overall liquidity. On the financial front, approximately 89% of the required debt funding has been sanctioned, where around 74% of the disbursement already done. The remaining disbursement and the further balance sanctions will happen after the commissioning of these installed plants. Due to these pending disbursements, we had borrowed from banks to mitigate the gap to complete the project on time. And as a result, our overall debt is coming on higher side at company level. Further, out of the total equity requirement into these projects of INR 721 crores, INR 705 crores being infused as of September '25. In BESS project, the company has executed a binding agreement with GUVNL and NVVN for a 435-megawatt equivalent 870-megawatt hour project, scheduling completion on November '26 and December '26, respectively. In May '25, we have secured additional 600 megawatts hour project from GUVNL, an agreement for the same is scheduled to be signed in November '25. With this, the cumulative contracted capacity stands at 735 megawatts or 1,470-megawatt hour. The procurement process for BESS project has been initiated and the orders for key components like power transformer, switchgear system, GIS has been placed -- have been placed by the company and vendors for BESS container supply has been shortlisted and final orders for the same is likely to be placed by January '25 -- sorry, January '26. Equity requirement for all these 3 projects remains INR 500 crores and INR 120 crores is anticipated to be infused in FY '26 and balance in '27, '28. Upon completion and commissioning of all these BESS projects, the company expects annual revenue of INR 225 crores from BESS. On monetization of 5 HAM projects, over the past few months, our leadership team engaged into intensive discussions with several prospective investors to monetize our second lot of 5 HAM projects. So these projects include Raipur-Visakhapatnam Corridor Package AP1, OD5 and 6; Khammam-Devarapalle Package 1 and 2, and our goal was to secure a partner who could provide both financial strength and the sector expertise to maximize value of our stakeholders. During August '25, we executed a binding offer document with Neo Infra Income Opportunities Fund. Under this agreement, our holding company will sell 100% of its equity stake in these 5 wholly owned subsidiaries managing these HAM assets. So this achievement reflects the successful execution of strategic negotiation and underscores a strong market trust in the value of potential returns of these infrastructure initiatives. Further to this, we have also executed the share purchase agreement of Raipur-Visakhapatnam OD6 Package project recently, and remaining 4 SPA is targeted to be executed in this quarter only. The enterprise value of the transaction is INR 3,584 crores. Total investment, equity investment and total debt obligations in all these 5 HAM assets are INR 767 crores and INR 2,200 crores, respectively. We had already initiated to fulfilling the compliance of the condition precedents as per the binding offer, which includes clients approval, lenders consent and other representations and warranties. We expect to conclude these formalities and expect to conclude the transaction within this financial year. This transaction will deliver significant strategic benefits to the group by strengthening the balance sheet and reducing the leverage, thereby enhancing our financial flexibility. The realized funds can be deployed into new HAM bids, road expansion and other high-return infrastructure opportunities. We believe this deal achieved a robust valuation, positions the company for accelerated growth and value creation in the coming years. Regarding the equity requirement for balance HAM projects, the total activity requirement for 11 HAM projects is INR 1,709 crores. As of 22 September '25, INR 1,165 crores has been infused. Of the remaining amount, INR 195 crores is scheduled for infusion in 6 months from now, that is FY '26, followed by INR 163 crores in FY '27 and INR 186 crores in FY '28. Moving on to the financial highlights of quarter 2 FY '26, this is the first half of FY '26. So the stand-alone financials revenue for quarter 2 FY '26 reached INR 1,154 crores with an EBITDA of INR 147 crores and EBITDA margin of 12.7%. PAT for the quarter 2 FY '26 stood at INR 67 crores with a margin -- PAT margin of 5.8% compared to INR 89 crores and the PAT margin of 8.3% in quarter 2 FY '25. Revenue for first half FY '26 reached INR 2,863 crores with an EBITDA of INR 382 crores and EBITDA margin of 13.4% and a PAT of first half FY '26 stood at INR 193 crores with a PAT margin of 6.7% compared to INR 228 crores and a margin of 8.9% in first half of FY '25. On a standalone basis, our gross debt stands at INR 1,634 crores. This comprises INR 550 crores in working capital debt, INR 400 crores of NCD and INR 684 crores on term debt, current maturities and trade limit. Regarding the consolidated financials, the revenue for quarter 2 FY '26 reached INR 905 crores, with an EBITDA of INR 206 crores and an EBITDA margin of 22.8%. PAT for quarter 2 FY '26 stood at INR 52 crores with a PAT margin of 5.7% compared to INR 81 crores and a PAT margin of 8.9% in quarter 2 FY '25. Revenue for first half FY '26 reached INR 2,387 crores with an EBITDA of INR 466 crores at an EBITDA margin of 19.5%. PAT for first half FY '26 stood at INR 151 crores with a PAT margin of 6.3% compared to INR 243 crores and a margin of 10% in first half FY '25. As informed in the previous quarter, the dip in the consolidated revenue and PAT is mainly due to the elimination of intergroup transactions with SPVs of solar projects, which are recorded as capital work in progress in consolidated accounts. Since September '24 quarter till this quarter around INR 2,111 crores of revenue and a profit of INR 380 crores has been eliminated in the consolidated financials. While the stand-alone results reflected EPC revenue and taxation and tax, the tax cost remains in consolidated results until the SPV start generating operational revenue, after which margins will improve. Turning on to our future strategy plans and the future outlook. In the year ahead, our priorities at H.G. Infra will focus on sustaining a steady growth trajectory anchored by strong financial fundamentals. Operationally, we aim to tighten working capital cycles, ensure on-time project delivery, strategically allocate capital and enhanced monetization efforts. Both targets have been set for FY '26, where we plan to secure INR 10,000 crores to INR 11,000 crores of new order inflows. And by FY '27, we intend to expand our non-road infrastructure portfolio to around 35%. Looking ahead, we are focused on expanding into building construction and real estate, green hydrogen and other emerging sectors. Our team is actively working to explore opportunities and contribute meaningfully into these sectors. At the same time, our strategy continues to diversify into high potential areas, such as water management, tunnels, transmission and distribution and smart urban infrastructure. We remain committed to strengthening our digital and automation capabilities, enhancing ESG performance at the strategic level and delivering scalable, impactful projects across diversified geographies. Together, these growth levers will drive H.G. Infra's evolution in the broader multisector infrastructure platform, creating long-term value at its core.

With this, we would like to open the floor for the Q&A.

[Operator Instructions] The first question is from the line of Vaibhav Shah from JM Financial.

What would be our HAM and solar receivables? Last time you indicated that solar receivables are quite dated. So have we received them?

What is solar and debt receivables?

HAM?

Total debtor, and -- you're talking of debtor?

Yes, yes, yes.

So total SPV receivables into debtor is around INR 255 crores in solar and INR 557 in HAM. And this contract asset is INR 235 crores in solar and HAM is INR 529 crores.

Okay. Sir, we saw a sharp increase in the debt levels in the second quarter. So any reason for that?

So basically, there has been 3 significant areas where we have invested this debt -- increased debt. One is the advances to our vendors, that is around INR 150 crores, we did into that because of procuring few of the core kind of material, which are required for debts and this thing. So mobilization advance also has been there, where INR 250 crores of mobilization advance is there. So there is a significant decrease into that because in newer projects, we could not receive any mobilization advance till date. And the payables also has decreased where the retention has been paid because of the many other projects, which we have recently completed where the vendor payment of the retention has been paid. So this I have explained into this remarks that the total around INR 490 crores of debt is still to be received from the HAM bank's disbursement. So this is, again, adding to this particular increase in debt, which was again to quarter 1 as well.

So once that comes, the debt should go down?

Yes. Debt, we are expecting in quarter 3 and quarter 4, significant decrease is likely to be there, and we will be roughly around some normalcy as we were in earlier quarters.

Sir, lastly, on the margin side, we have seen some softness in the last 2 to 3 quarters. So were there any one-offs in this quarter because margins were 12.7%? And how do you see it going forward?

The margins were on track only. There are exceptionally a few of the projects, say, especially Ganga, where we have taken a hit because of the change in law, there is likely that we would be taking that to the arbitration. We are going to seek this kind of an opportunity where it would be paid. It is a payable kind of a thing. But outrightly, now the client is not agreeing to that. So there is one number which we discounted immediately into our quarter's number.

What was that amount?

This is -- in the first quarter, it was around INR 40 crores, and in the second quarter, it is around INR 35 crores.

So going forward, there is any other expectation or it is now over? Or are there further...

All projects are very -- running very smoothly and perfectly within the right margins as we envisaged. So it's only one of the projects which we have taken at discount because we don't want to keep those numbers where the margins are likely, definitely there as per the contract conditions, but it may take a few quarters to realize that.

So now that is completed the provision or it can come further in Q3 as well?

No, no. We are all done into these first quarter 1 and quarter 2.

Okay. And sir, lastly, on other income, it is INR 17 crores in second quarter. So why it is so high?

So I'm not seeing that because the FDR is also there where some maturity would have been there. Other than that, I don't know -- let us see, and I will get back to you.

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

A couple of questions. So first, broader guidance on the top line front. So now given the muted relatively in the 1H to achieve a INR 7,000 crores, we need a 19% kind of a growth rate in the second half. So how do we now see?

The growth in first half of this year is almost as per the plans only, we are around INR 2,800 crores, around a 10% to 11% growth. So for the balance portion, definitely with the rains subsided and the appointed date of this Varanasi-Kolkata Package 13 received, Ayodhya is likely to be there within a few days, and Package 10 would be followed in next month only. So with that, we are estimating that a significant number would be in quarter 3 and quarter 4. So definitely, we are not very much sure that we would be touching INR 7,000, but something around INR 6,500 crore to INR 7,000 would be our number which by end of this year, we will be able to -- comfortably, we will be able to reach.

Okay. And for next year also, earlier, we were looking at INR 8,000. So given the -- if we can get a INR 10,000 crores, INR 11,000 crores order inflow. So INR 8,000 crores is doable in FY '27?

With the balance order of about INR 14,000 crores, if you do around INR 4,000 crores in the balance, even it's around INR 4,000 crores in the balance part of the year. So we would be left with INR 9,000 crores in the year, and again, with the likely addition of the new order, where now the orders from -- even from the government or from any private line. So those are the orders which we do not expect much of the delay in the appointed date. So whenever the orders would be placed, likely within a few months, the appointed date would be in, say, there because of the land availability and everything has been improving a lot. So with that, we are expecting that we will be touching around INR 7,800 crores to INR 8,000 crores in the coming year at about 15% growth as we have earlier estimated. .

Okay. And now from the third quarter onwards, we should be having a 15% to 16% kind of EBITDA margin and that should continue for 2, 3 years?

Roughly, the margins because that has been impacted because of the few of the projects, which I already have discussed. So there, we have taken a hit of those margins immediately in the current quarters only.

The next question is from the line of Sarvesh Gupta from Maximal Capital.

Just one clarification again on the margin front. I think last quarter also, you alluded that most of the Ganga Expressway-related onetime provision has been taken in the last quarter only. But in this quarter also, we have seen INR 35 crores that you have mentioned. I'm not sure, even if one includes that, I'm not sure whether it is going up to 13 -- 16-odd percent, which we used to be a normal track record on the margin side. So can you please help us.

That would be only one project, which you had taken this hit, not because the client is not eager to pass on this claim. There is change in law and there is one COS. So there is an interchange which has been constructed as a variation, which we have not considered as a revenue because the client may take some time for approving that into -- as a variation claim. So in NHAI project or this kind of a project, there are 2 different things, which are -- because the client always consider anything, which yes, definitely qualifies your claim. So here, in this case, we are putting into our consideration that we may or may not qualify it immediately. So it is a matter of time. Definitely, these are all the numbers which we have taken as a provision or a margin has been discounted for the basis. Otherwise, it's not that the margins are not there. They were all there, and we were likely to see this number also coming in the future quarters within, I think, 3 to 4 quarters, this can be improved even.

But in second half, sir. Now, can we expect to get back to a normal 15%, 16% margin or it will remain in 12%, 13%.

See, all the projects, we have good margin. So we are expecting to come back to this normalcy.

Okay. And second, sir, on the order inflows. Now if I compute your order inflows for first half, it is coming to around INR 1,500 only against the INR 11,000 crores sort of the expectation in the beginning of the year. So what gives us the confidence that we will be able to -- in the remaining 4.5, 5 months, we'll be able to get to INR 10,000 crore order inflow, sir?

So there are 2 big expectations, which we are expecting. One is definitely at NHAI. So nothing much has happened in first half and because of the land and the prequalification criteria and many more things with now everything because the approval of many projects, the bidding pipeline is very strong and they would be awarding in subsequent months. This is one area we believe. And the second is, as we have already successfully completed one of the projects of Adani, this is a Ganga Expressway project. So there also, the -- with a strong relationship with them, so we are expecting some private orders. So the rail, roads and the private orders, which we believe that within the future, say, the further 3 to 4 months balance, we would be able to secure at around INR 10,000 crores of orders.

Okay. And sir, lastly, on the MSRDC project, so that INR 4,000 crore book is not available to us for execution. So given that sort of a situation and most of the order inflow, which will happen, let's say, in the next, what, 1.5 quarters, then I don't know whether -- how much you will be able to execute. So are we being too optimistic about INR 7,800 crores sort of a run rate next year in revenues given that very little order book will be left for execution for next year?

So if you see the total order, if you just take out this order from MSRDC, would be -- balance would be around INR 4,000 crores -- INR 5,000 crores. So those are the orders, out of which almost everything needs to be done in FY '27 just bearing, I think, more -- not more than INR 400 crores, INR 500 crores, which would be out of -- just going beyond FY '27. So this is one area, which we believe and that the orders which we are likely to secure now. So those are the projects which we are expecting, where the tentative -- the time which we actually -- it normally take is 1 to 2 years from the award date to the appointed date. So this is not going to happen in future orders because it's only a time when the orders, if you just can see the LOA to the appointed date, it would be 2 to 4 months maximum. So this gives us the opportunity and give us the confidence that we would be able to secure the orders as well as we would be able to deliver this much of amount of orders.

The next question is from the line of Vishal from Antique.

Just continuing on the previous question. Out of the INR 14,000-odd crores, barring the Maharashtra order, are there any other projects where the appointed date is pending?

Yes, the appointed date as of now, which we -- one of the Ayodhya project, which we would be getting within a few days only. And the Jharkhand project, this is Varanasi-Kolkata Package #10 in the subsequent month only. So only the appointed date of this MSRDC project, that would be only balance.

So total, you are mentioning total 4 projects, including the Maharashtra one, where the AD is pending, is it?

Correct.

Okay. Fine, sir. And second, last thing is like in terms of financial closure of our -- the project where we have asset ownership, say BESS, even solar. So any update that can you provide, sir?

Solar financial closure already secured, 89% of the total project being sanctioned and 74% of the total disbursement happened. But still the big chunk of disbursement is yet to be done. But we have progressed almost 94%. So this is one bank which is SBI, which is they are just expecting because within the next 2 months, we need to complete the entire -- almost entire project. So within that timeline, balance of 11% would be sanction and disbursed, and the balance is already sanctioned would be disbursed in a few months from now. So apart from this financial closure, where the BESS -- one of the sanction, which we already have received from PNB Bank. And very recently, I think by a few of the other banks are also taking, participating in financial closure. So we are expecting for both the BESS projects, where the -- by November and December, we need to submit the financial closure.