J. Kumar Infraprojects Limited ($JKIL)

Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Limited Q4 and FY '26 Earnings Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which J. Kumar Infraprojects has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward-looking statements concerning J. Kumar Infraprojects' business, prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements. [Operator Instructions] Please note that this conference is being recorded. I now turn the conference over to Dr. Nalin Gupta, MD J. Kumar Infraprojects Limited. Thank you, and over to you, sir.

Good afternoon, everyone. This is Dr. Nalin Gupta, Managing Director of J. Kumar Infraprojects Limited. Along with me, I -- firstly, on behalf of J. Kumar Infraprojects Limited, I warmly welcome you all to our Q4 and FY '26 earnings conference call. Joining me today are Mr. Vasant Savla, CFO; and our Investor Relations partner, Marathon Capital. I trust you all had the opportunity to review our earnings presentation and press release available in the stock exchanges and our corporate website. FY 2026 was a year of consolidation for the company, with operating and financial performance moderating compared to FY 2025. The impact was largely operational and timely related, stemming from external factors that temporarily slowed execution. Through this space, we maintained a strong balance sheet and an adequate liquidity, ensuring resilience and continuity of operations. Importantly, this period has strengthened our foundation for the future. The current fiscal has already been significant. Order intake has seen -- Considering strong bid pipeline, we expect the momentum of order booking to continue, which provides us significant headroom to -- the company has so far booked orders in excess of INR 4,500 crores in fiscal year, with an L1 of INR 1,770 crores, totaling to around INR 6,300 crores. Considering a strong bid pipeline, we expect the momentum of order book to continue, which provides us significant headroom to accelerate the execution. With this solid order book, improving execution velocity and expanding capabilities across our core verticals, we are very positioned to translate this pipeline into sustained growth. Now coming to financial performance. Consolidated performance highlights for the FY '26 is: revenue from operations grew by 1% to INR 5,723 crores as compared to INR 5,693 crores in FY '25. The EBITDA stood at INR 823 crores as compared to INR 826 crores in FY '25. The EBITDA margin stood at 14.4% as compared to 14.5% in FY '25. The PAT for FY '26 stood at INR 387 crores as compared to INR 391 crores in FY '25. PAT margin for FY '26 stood at 6.8% as compared to 6.9% in FY '25. Consolidated performance highlights for Q4 FY '26. Revenue from operations from -- for Q4 FY '26 stood moderated by 3% to INR 1,585 crores as compared to INR 1,633 crores in Q4 FY '25. EBITDA for Q4 FY '26 moderated by 5% to INR 224 crores as compared to INR 235 crores in Q4 FY '25. EBITDA margin for Q4 '26 stood at 14.1% as compared to 14.4% in Q4 FY '25. The PAT for Q4 FY '26 moderated by 5% to INR 110 crores as compared to INR 114 crores in Q4 FY '25. PAT margin for Q4 FY '26 stood at 7% as compared to 7% in Q4 FY '25. The net debt as on 31st March 2026, stood at a negative INR 264 crores, that is cash positive. Working capital for FY '26 stood at 99 days as compared to 112 days for FY '25. Total order book as of 31st March 2026, stood at INR 18,554 crores. The order booked in the area includes metro projects elevated and underground contributing 11%, elevated corridors and flyovers contributing to around 51%, rural tenant projects contributing to around 18% and others contributing around 20%. We can now begin with the questions and answers. Thank you very much.

[Operator Instructions] Our first question comes from the line of [ Jainam Jain ] from [ DAM ] Capital.

So my first question is, what is the current base pipeline for the system?

This pipeline? You said big pipeline, right, Jainam?

Yes.

Yes. So as mentioned by me, we have already bagged orders of -- into INR 4,500 crores with an L1 of INR 1,770 crores, totaling to around INR 6,300 crores plus, taking our order book to around INR 5,000 crores at top. And for this current year, we expect order book close to around INR 9,000 crores to INR 10,000 crores for the full year. And there are projects worth around INR 15,000 crores to INR 20,000 crores, which we expect to build in this coming period of current financial year.

Okay, sir. And are there any major opportunities which we are looking at [ Maharashtra ] this year in terms of bidding pipeline for -- especially for the metro segment or road or tunnel project?

Well, so if we see, firstly, we have recently bagged an order of INR 1,770 crores, which comes from the daily metro [ D207 ]. And there are further -- there are tenders coming up of metro for -- in Mumbai for Metroline 5, Metroline 13, Metroline 10, which is [ dilute ] to enter. So there are a lot of metro opportunities which are available. So of course, yes, Bombay, Delhi, [ Pune ], these areas are coming up with metro projects, so we'll be surely going for it. And overall, there is a very positive mindset for the infra projects because last 2 years were quite flat, and we could see a big slowdown in terms of the order book coming in, and that's how we just booked an order book of only INR 1,000 crores for the current fiscal year. But in Q1 itself, we have bagged orders of more than INR 6,300 crores. So this year really looks to be quite positive and that's how we are also very positive about it.

Okay. And intention road and the opportunity?

Rural per se is never J. Kumar's main area of focus. So we basically look at express corridors like even now, there are some projects which are lined up where it's a combination of road and elevated combinations. So that sort of project is what J. Kumar focuses into. And in the near pipeline, we can see certain projects coming up in a similar way like [indiscernible] and some other MSRDC projects which are there. So we are quite positive about it.

Okay. Sir, largely on the working capital side. So can you give the amount for retention in unbilled revenue and mobilization advances?

Unbilled revenue is INR 578 crores; mobilization advances, INR 706 crores; and the retention is INR 464 crores.

The next question comes from the line of [ Bebal Shah ] with JM Financial.

Sir, firstly, on the guidance side, what kind of revenue growth and margins are we looking for FY '27?

So this year, we are expecting a growth of around 15% in the top line. So we should be crossing INR 6,500 crores with the current order book that we have and the projects which were a little bit on the lower side, but now we have got approvals for them as well. So a 15% increase in top line and bottom line is what we are expecting.

And sir, on margins?

Similar, 15% increase. Bottom line, I said.

Sir, on EBITDA margin?

Yes. So EBITDA, we have around 14% to 15%, which as we have -- with the type of order books that we have, our idea would be to increase it from 14%, 15% to 15%, 16%, and the PAT would be around 7%.

Okay. And sir, given the flattish year we had on FY '26 and a very strong order backlog, so do you feel that 15% revenue guidance is a bit conservative and we can be even better?

There is possibility of doing better. But looking at last year's bad experience where we thought that we get orders but we could not -- unfortunately not get it, but I would say that surely, there is a scope of showing some better results. But as of now, I would like to commit myself with a 15% increase in top line and bottom line. And I would say that even last year, J. Kumar's policy, which we always ever try to follow, that it was around INR 2,500 crores of orders that we booked in '24 -- and around 25, I'm sorry, and around only INR 1,000 crores order that we booked in '26 was not by any mistake or default. It was a well-chosen thing that we don't want to book orders where we don't have good bottom line. And that's how now the order that the company has bagged is with the similar margins, and we don't want to book orders just for the heck of booking orders. And that's how we can see last 2 years, we didn't get orders at double prices [indiscernible]. But now, we have got orders at the similar margins where we are -- which is our target. So I think we are very comfortable that we'll be able to cross this 15% top line growth. But as of now, we'd like to say 15%.

Okay. Okay. And sir, on CapEx, what are our plans for '27?

So there are some CapEx which are still due for GMR in Chennai. So there -- and the incremental CapEx that we do every year. So around INR 200 crores to INR 250 crores for the next coming 2 years, that is FY '27 and '28 is what we are expecting, including the incremental CapEx.

So for FY [indiscernible] also INR 200 crores to INR 250 crores.

Yes. Including the new order book that we have done of INR 6,500 crores.

Okay. And sir, when do we expect these new orders to come on execution? If you could just say some update on that regarding this [indiscernible] project, then on vestibule and [indiscernible] project, when do we expect to start the execution over there?

I think from Q2 or Q3, we should be starting -- we'll be starting the contributions coming up because initial 6 months to 9 months, you have to do the preparatory work, the joint -- the solicitation survey, geology and design approvals and all that stuff. So -- but second to third quarter, we should start getting some contribution from these projects.

Okay. And sir, lastly, on any update on the Chennai NHI project? How is the execution going on and on GMLR as well?

So Chennai, we have already started the work and our foundation and substraction vertical is there, which is in line, and the casting yard is fully operational. So we have already started casting our segments in the huge casting that we have developed. As far as GMLR is concerned, we have already casted more than 3.5 kilometer of tunnels in our casting yard, and we have got some COS also there and -- of INR 800 crores, which is also for that -- the new casting yard was acquired. That is also being developed. The molds have been ordered. The tunnel boarding machine, the shaft is already excavated, which is a, I would say, a particular work being done by the GMLR team. And both the PVMs have arrived at the job site, while PBM has -- is already in an advanced stage of assembly. And we expect by June 8, we will start -- we will do the stack, which is the site acceptance steps to start drilling the tunnel. And the second was -- [ 1.5 ] month difference, yes.

So we can see a 30% kind of execution for Chennai project, around 20% for GMLR in FY '27?

Yes, around 20% to 30% output, we should be getting from both these projects.

The next question comes from the line of Parikshit Kandpal with HDFC Securities.

Congratulations on a good quarter. My first question is, given the geopolitical issues, so are you facing any slowness in execution in Q1? Do you expect any slowing down of work? I mean client initiated slowdown in H1 because of high commodity prices?

Well, I would say that there is 0 impact due to the geopolitical changes. And things are, whether, I would say, at least from Maharashtra, there is a positive push that's happening from the CM war room, where each and every important project, the flagship projects are being monitored on a fortnightly basis. And means -- there is the problem, the solution is becoming better. So I'm very positive about the whole change. And so there is no negative impact on any of the projects, I would say, from these changes. Everything is in pipeline, and it does not -- being EPC project, we don't have any implication in any sort.

Some of the peers have highlighted that there has been a labor issue because of elections and significantly, cut down on labors have not returned. So what is our current site labor? How much it was in the peak? So if you can give some color whether the labor -- delayed labors coming back has impacted execution? And also on the commodity side, if you can help us understand what kind of -- in our order book, what is fixed price, what is variable pass through, commodity prices, and how are you mitigating that?

Well, Parikshit, firstly about the labor issue, yes, you are totally correct. There is a cut of around 10% to 15% of labor shortages there at all our sites. And this impact, I would say, is mainly due to the elections and these April-May months, which is every year, we face this shortage. It's nothing new in the industry because it's the time where people -- the labors go back to their home for managers, for farming and all other activities. So this is a routine thing which happens every year without any change. So it is a temporary issue and nothing alarming. That's from my side. Talking about the other thing -- I'm sorry, one more point you had made.

Commodity...

Commodity impact. So all the contracts, without exception, are covered under price valuation and escalation clauses. So there is no particular impact on the price increase due to crude or any other steel prices or something. It's a regular increase and it's fully covered in the price valuation and escalation clause. So 0 impact on our bottom line.

In our order book or whenever there is a commodity increase, so do you [ decline ] orders? So how does it happen from the accounting side? So how do you...

So there is pre-pricing that happens, Parikshit. It's basically -- there are very major monthly running bill that we submit to the department. There is a work time billing that has been done based on the milestones or quantities or whatever numbers, how the bidding schedule is being distributed. And at the bottom of it, the last month's bill, whatever the price deletion and expiration is there, it's being added at the bottom, added or deducted, depending upon the increase and decrease. So it's a clear pass-through, having no impact on the -- and every month, it has been generated along with the [indiscernible]. So A plus B, A is one [indiscernible], B is the price variation. So it has no implication.

And any price escalation change or plus or minus. So the proven authority is usually the same guy who is like approving your regulables? Or it gets escalated to higher authorities for further budget approvals if there is a major escalation? So does it go back to the CM for approval? So how does it happen in the back end?

There is -- it's just like a regular running bill. Even the budget that's been approved for any project, like half of the future project could [indiscernible] to still that administrative approval authority approval or the government approval at state level. Wherever the approval happens, the budget is for the project, and there is a wording that increase for the in [indiscernible], they say, [Foreign Language] means price medication escalation. That point is written as an additional thing, for which no approval is required even from the commissioner. It is regularly engineer passing the bill, approves it along with the monthly bill. So there is -- the accrual is excluding escalation.

Understood. So just last question on some of the key projects. I think CMS earlier announced Metro Line 8, Goldline and Metroline 14. And I think there was also a talk of the [indiscernible] to [indiscernible] some large infra projects. So any time lines on how these projects are progressing in terms of getting awarded? Whether in this financial year or next financial year because these are largely [ 2 ] site orders.

So one is I would list one important project, which is -- which is [indiscernible].

Sorry, my bad. [indiscernible] project.

Yes. So it's not a macro corridor, it's an elevated corridor similar to MPHL and like coastal road because coastal road has been awarded in binder. [indiscernible] is the last stretch. So from [indiscernible], which is also called a [indiscernible], from there, which will go [indiscernible], and that elevated corridor tender will be floated by MMRDA in any time like 3 to 6 months' time is what we are expecting as per the information we have gathered. And Metro Line 5 -- Metro Line, which is [indiscernible] side, that project, Metro Line 10, which is from [indiscernible], and Metro Line 13 and 14, these projects, which is from [ Mahindra to Girac ]. These metro lines are in advanced stage, and we should see the tender process in the next 3 to 6 months time.

Okay. And any update on the [ Vikhroli ] to [indiscernible] Connector? Is that happening or not?

Honestly, I'm not very sure about that. So I wouldn't like to just make some false...

So all these metro projects put together, how big is the pipeline for these projects 5, 10, 13, 14 and [indiscernible]?

So if we talk about [indiscernible], it is more than INR 50,000 crore, INR 60,000 crores. So altogether, INR 100,000 crores is what we should expect in this 1 year's time line.

In next 12 months, almost you think INR 1 lakh crore plus [indiscernible] from Maharashtra?

Yes. That's only from Maharashtra, I'm talking...

Yes, yes, only from Maharashtra. I know, I mean in other states also will contribute. But Maharashtra, you have a very significant market share. So just wanted to understand whatever you are guiding. I think this you said INR 9,000 crores to INR 10,000 crores or inflows, right, in my guidance?

Honestly, when we speak of these projects, we are not even talking of Maharashtra owned as a per se because it's in and around [ Mumbai ], we are talking of around INR 100,000 crores.

Yes. Guidance you said is about INR 9,000 to INR 10,000 for this year? And you have already done close to about [ 6,300 ].

That's right. See, it's like obviously, we already had a very bad experience last 2 years. Kumar is very pessimistic when it comes to margin. We don't want to back orders without margin very -- very adamant sort of mindset you can say, because I'm [indiscernible]. If there are no margins, I just don't want to drop my capacity and make the good opportunity going forward. So that's how we sit for 2 years when we have written all-time high -- lifetime high order book of INR 25,000 crores as we speak now. And going forward, we may do better than what we have committed. But as of now, I would just like to stick INR 9,000 crores to INR 10,000 crores. We are going forward in Q2 to Q3, we can keep revising these figures. But yes, INR 9,000 crores to INR 10,000 crores -- forget INR 9,000. INR 10,000, we'll close this year.

The next question comes from the line of [ Girijari ] with [ Nirmal ] Bank Securities.

I have 3 questions. One, net figures to margin. Second one is improved cost efficiency and third one is order book. So margin, we have been maintaining around 14% of margin even yearly as we see in the margin also. We are -- stick with the margin 14%. So as we mentioned, 15% kind of margin we can see in FY '27. In fact, we have insurance, we have 0 impact of the geopolitical [indiscernible] cost. So I can see, if I'm not wrong, our construction cost [indiscernible] revenue has been changed in our fourth quarter of FY '26. So kind of a depreciation. So do you think this is has impacted this -- you're mentioning it is no impact, but I can see there is a cost increase in the percentage of your total revenue. So how is that even -- so what is factoring there?

See, somehow, I'm not very clear about what's your question because when I said that the geopolitical changes have increased the price of fuel, diesel, the steel prices get impacted so there are certain increase in shipping costs. There is certain implication on the steel prices. So those impacts are basically getting covered somewhere or the other, like our price escalation and variation clauses, it has 4 components, which is steel, cement, fuel and others. So there are -- and [indiscernible]. So there are 5 parts, I would say. So in past parts made somewhere or the other, those items, they get covered. So this means we have done these metrics of increase, decrease, many times. What is the actual increase and what is the percentage increase because we are being paid on the basis of indices. So the indices do not increase exactly proportionate to that. It does not decrease proportionately to the actual increase or decrease. But when you see as an overall picture in the year's time, even when there was steep price increase post-COVID, we could see -- we thought that we will be putting a claim on the department for an additional increase on [indiscernible] prices of the steel. But when we calculate d -- tabulated the whole team on a yearly basis, we found that there is no 0.5% year and there increase, which was like really not even discuss it. So we at that point. So there is no impact when I say for these contracts, which are on EPC basis having price valuation and exploration clauses. Not have this clause or which are on BOP. Those projects are different. So this is irrelevant for us.

Yes, sir. Yes, sir. And the last question will be on order book. So if I see from 1st of April 2026 to 19th May 2026, the order book -- this is what you are saying INR 6,000 crores of order is a new order inflow, right, which is EPC project in Maharashtra, EPC project in Uttar Pradesh, the Metrorail and [indiscernible], yes. So these are the -- you are saying this is excluding our DST, right? 6,000 something.

All the order books that we are discussing is without GSC. 18,500 [indiscernible] days in March was also exclude GSC and INR 25,000 crores as of today, including the L1 of [ 70 to 70 lakh ] [indiscernible] is excluding GA.

The next question comes from the line of [ Janvi Mishra ] with Green Portfolio.

Actually, most of my questions have been answered broadly, but I would additionally like to ask that, sir, in previous call, you had mentioned that the TBM capitalization chain is lowered into the shaft, which was like expected around February end. And the useful life was guided at 3 to 4 years. Now that we're entering Q1 FY '27, can you quantify the incremental quarterly depreciation impact on the GMLR become operational.

So firstly, I would like to clarify that we have not mentioned that the PBM would start in February. We had -- but you are partly right because we had mentioned we will start moving the machine in the shaft from February, which we have already started in January. And the machine is in, as I mentioned, the machine is in an advanced stage of assembly. And by next month, then we'll start drilling. So the machine is running well on time. And in fact, I would say before schedule, because it's just 7 months, we started the machine, which usually, as per the contract period also, it was 1 year, and we are doing it in less than 9 months, we are starting the machine. As far as depreciation is concerned, we will be doing -- as per the rules of income...

Depreciation will be after books of accounts only. Only thing is this machine has been costed into the project. So what we would like to see is that the real depreciation would be more because this is a special machine where we have to amortize the majority of the portion on the project, but it will be depreciated as per the requirement of the book. So the profit and loss would be seen differently when you see the books.

Yes, sir. So there is no number to quantify what would be the incremental value?

So we'll have to really work out that number, [ Janli ]. But yes, as we understand what you are seeing. And within 3 years, we have 2, 2.5 years is what our internal target as far as per contract I'm entitled for 4 years. But within our internal target is to complete the project in 3, 3.5 years. So the DBM would be amortized over these 3 years instead of like -- but when you see in the books, it will be asked for their own [ 8 ] years or whatever it is. So -- but we will amortize it in 3 years with a faster depreciation whatever is allowed in the books.

Okay, sir. And similarly, like how would the finance costs look in coming quarters? Like any incremental value?

So the CVM installments that we are supposed to pay, because we have [indiscernible] 3 years as the term loan for this huge machine. And we want to -- we'll be paying it and we'll be booking it under expense. Along with the progress of work, CBM will be fully repaid. While the analysis complete, our term loan will also be completed. We have an option to repay the amount that we have kept with the bank. So -- because we don't want to keep the loan outstanding as you read to us for the coming years. So we'll be fully repaying the machine along with the execution.

The next question comes from the line of Sidhaant Lodaya with Sanshi Fund.

Cycle question. When you say order book of INR 10,000 in FY '27, is it the order intake? Or is it something you're envisaging that the order book would be at the end of the year?

No, no, it is a new order intake. INR 25,000 crores, you're seeing a top line reduction of INR 6,500 crores with 0 order intake will also stand at around INR 19,000 crores.

Correct. And this INR 10,000 crore includes the existing INR 4,500, right?

Yes. INR 6,300 crores, INR 4,500 crores you see LOE that we have already...

Correct. And L1 at INR 1,700.

You should receive within 15 days to 30 days max. And so additional over and about INR 6,300 crores, around INR 3,700 crores is approximately INR 3,000 crores excess proxies what we have to book more.

The next question comes from the line of [ Nishit Jain ] with S&J Investments.

Can you throw some light on the progress of the [indiscernible] costal road?

So [indiscernible] coastal road package B, which is from [indiscernible] to [ Mindspace ]. And from Mindspace, we have a long connector of 6, 7 kilometers that goes up till [indiscernible] city connecting our GMLR project. So the approvals of most of the portions have been received, there are some minor approvals that are required from the environmental issues. We have already started the mangrove cutting. We have done 10% mangrove cutting, but that mangrove cutting such a way that the temporary excess bridge, which is called a TAP, the steel bridge through which we enter we see. The material has already been procured. The labor contractor is in place, and we are starting with that work so that we can continue our work even in monsoon. So those works are already started. We have already completed more than 105, around 14, 15 foundations, around 7 8 years has been casted. So the work is started now and because it was earlier 2 years were mainly there were a lot of revisions in the alignment, some additional variation will also be getting attracted because of these changes, positive variation. There are some -- there were some level changes that they were hitting the Metro Line 7 and Metro Line 2 way. So all those things require the entire overhauling of the project alignment and levels. So that has been done. Work has physically started. Foundation work -- foundations and substructure works have already started. So now it's in the proper alignment. Traffic permissions have also been obtained. So this year, we should see a decent amount of top line coming in from that project as well.

Okay. And this is more of an on-site work or for this even the cutting had set up and already is done and...

These are all from the on-site job. And casting has also been under setup stage. So now we are setting up the custom as well.

The next question comes from the line of Bhavin Modi from Anand Rathi Group.

So just wanted to know how much money we have spent on the TBM and how much more CapEx we are going to in TBM? And how much we have paid and what is the loan amount that is taken? And what is the balance drawdown, which is spending? So if you can help with that?

Can we talk about these numbers separately because I wouldn't be very comfortable talking about the price of my TBM because this is a price-sensitive issue. But there is no additional major CapEx to be done with regards to TBM. TBM has already been procured. It has been financed and we have paid part of the money. Around 10% is already repaid. So there is no major impact and the 10% approximately has already been repaid out of that loan from the receivables. And within a period of 2.5 to 3 years, what I earlier mentioned, will be as -- along with the progress of the work, it will be fully paid back.

Okay. Got it. And second, sir, there was a pre cutting permission that was required for GMLR from RA. So has the approval been assessed?

Yes. We have received the 100% provision. It was not from RA, but it was from Supreme Court. And as I had mentioned that the [indiscernible] really supported us and the permission has been received, precutting and transplantation is already completed. And that's how we have excavated the shaft and the curtain cover is also being executed. So we are out of the 3 issues totally. And that too, in some -- were done by December. So it's already in progress in a good speed.

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

Most of the questions have been answered. Just a couple of things to clarify. Sir, when we are saying that we are looking at a 15% revenue growth for this year, and given, obviously, the inflow most likely would be up more than INR 10,000 crores for this year. For next year, can we see even a higher rate, 18% plus kind of a rate because the FY '26, whatever we have lost [ 500 crores ], INR 600 crores because normally, we are growing at 15%, 16%, so to cover it up. That's the way one can look at?

You can look at that way. But I wouldn't commit right now. I just want this things to start moving. And going forward, Q2 or Q3, we'll be able to really comment on that. But yes, you are not wrong in a way. One can look at in the way you are saying, yes.

Yes. Second, for this year FY '27, for 15% to achieve, so that means from Q1 from this quarter itself, can we -- will be seeing at least 10% plus kind of growth? Because when I'm looking at a number, at least it should be there else the second half, particularly third and fourth quarter, we need to have 20% kind of a growth needed, given whatever is -- what you have highlighted that whatever the geopolitics is that it is not impacted on the margin front and on the execution, but just trying to get a confidence again.

Well, I would say I'm not very sure about Q1. I wouldn't like to comment at this stage because, honestly, I've not looked at the inflows as of now. But Q2 onwards, yes, you will be seeing this increase in the similar lines to achieve this 15% top line.

Okay. Okay. Got it. And in terms of the inflow, you highlighted the opportunity, INR 1 lakh odd crore. So the bigger projects, obviously, it would be in the different packages. So are there any particular specific projects because now it is a 3, 6 months that you are saying the tender will come, will be alone -- will be bidding or have you already finalized if we want to have a kind of a GMLR, we can go with a JV also.

So Shravan, which will be a project-specific call, depending on the size of the project and nature of the project, where there are -- wherever J. Kumar qualifies independently, surely will be going independently. There are certain projects where joint venture will be required from financial or technical point. So there, a joint venture is required really going in JV. So there could be a very project-specific cost. So generalizing it wouldn't be right from my side.

Yes. No, my point, I was trying to understand that because we are already INR 6,300 crores inflow is that, why can't we have -- I think we should be having at least INR 13,000 to INR 15,000 crores kind of inflows given the opportunity and you are seeing the tendering most likely would be happening awarding, though it may be maybe a third quarter or fourth quarter. But that should be the -- so we should not be minding even going for a INR 15,000 crores kind of inflow?

So if you remember, in 2024, Shravan, we had bagged orders worth around INR 11,000 crores. So it's not the capacity that the company whether like we don't have any capacity to bag orders more than INR 10,000 crores. I just want to be very realistic and a little bit on the safer side because last 2 years, we just made INR [ 2,500 and thousand ] crores, which was much, much lower as compared to our expectations. So that's how I just want to be very realistic of talking right now. As I said, that we have not even completed Q1, and we have bagged orders worth around INR 6,300 crores. But again, the question comes in where there are a lot of talks happening that these projects will come in 3 to 6 months or 9 months or 12 months. But if it fits, again, the timing these orders are placed and orders have been issued. And secondly, as the quantum of work coming in together because depending on the aggression people have and the mentality that J. Kumar has that we don't want to bag orders without our margin. I just want to [indiscernible] optimistic that, yes, we cross INR 10,000 crores because I have mentioned when I started, I think I mentioned INR 9,000 crores to INR 10,000 crores. But I'm sure that we'll be able to cross this 10,000 mark even this year. Given an opportunity, we can even bag INR 20,000 crores. So it is not that we are not resting that we have a mindset of staying at INR 10,000 crores. I hope this clarifies your question.

Yes. Lastly, sir, this INR 100 crore investment that we have done investment property in results, just wanted to get a clarity when this will be -- we will be getting back by Q2 itself. And broadly related kind of INR 70, INR 80 crores kind of a profit that we will be having on that?

So I don't want to comment on the exact number that we'll be making. But to clarify, out of the INR 106 crores of the loan that we have taken for PSL, INR 90 crore has already been paid back by selling the plant and machinery as well as the internal accruals. And still the majority of the sales amount is still pending, which is very close to the -- looking at the high demand in that area of Chennai for new data center coming up. I think that we should be able to make -- in my side, sorry, we should we expect a good profitability in ROI on this overall asset.

So broadly by Q2, this would be out of our balance sheet, whatever the INR 100-odd crores...

[indiscernible] where it should be out.

[Operator Instructions] The next question comes from the line of [ Chandramouli Jagannath ], an Individual Investor.

How is the Chennai projects are going now, sir? Because I am asking this question is, there is a new government formation happened, I believe it is the state government project.

Well, so the project is in advanced stage. And I mean my [ brother ] looks after that project, to be honest. So I just don't want to make any news comments. But yes, the project is well on line going on well. And I will just say one thing. If a project is to be started, the change of government can have an impact, whether it should -- it can have some negative impact or not. But once the project is already started on the ground basically, and a substantial portion has already been completed, there is no negative impact that it can have or any government wouldn't like to get through. In the middle of the road, we have already done and we have completed foundation, substructure and stuff like that, and you stop it. That's I think -- that's a very, very negative thing any state, any change in political party can do. So unless the project is not started, it can have an impact. But this project of INR 500 crore is -- there is no question of any impact that we can see from that area.

Okay. How is the progress? Is there value -- how much time will it take to...

It's going on well. We have already completed 50% of the project request in that project. So it's on time, and we are not delaying that project at all.

Sir, when it comes to working capital, you have done a great job last financial year. Is there any further scope for improvement?

As we have mentioned that we expect to increase our EBITDA by 1%. That's from 14, 15 to 15, 16 is what our end year is because if you look at our employee cost and other factors, it's still remaining the same percentage. So as we have overall thing, I think we should be able to improve this going forward.

Okay. Okay. Great. Sir, then when you are talking about 15% top line growth and also talking about 15% bottom line growth, when there is the efficiency and things like that comes in, the bottom line should go up slightly above and the top line, right?

You are very right [indiscernible]. And that's how we have mentioned that we expect in 6 to 8 quarters, we should be able to further increase some basis points in terms of EBITDA.

Okay. Okay. And just your valuation right now is so attractive compared to our EBITDA and the cash flow. Would you think of some buyback plans and things like that since you have a cash surplus will be great for you and as a shareholder, right?

Your point is well noted, and that's all our cards. Just waiting for some financial comfort that we need because if you see that even with the increase in the order book and top line, we haven't increased our debt, but in fact, we have reduced our debt. So firstly, we are trying to cover up the financial requirements of the company. And yes, as you rightly mentioned, that's in all our cards, and we are very positively looking towards it.

And generally, this is just my humble request because more than giving a dividend buyback, now the tax has become little attractive for you guys as well as them. So maybe you can think of buyback, I mean this is my suggestion, sir, okay?

Yes, I'll tell you one thing. Now like the paying dividend has been a historical thing of J. Kumar. So there was a discussion even in this Board meeting that instead of paying the dividend, should we think of doing a buyback. But we thought that it's okay sharing 10% approximately of your bottom line, investors should be benefited first. So the direct benefit, we didn't want it to exit. And otherwise, as I said, this was a discussion in our Board meeting yesterday, that we do the buyback and not pay dividend this year. So it was a double-sided sword, some investors wouldn't like it, then some investors would see it as a positive change because the stock market prices would go on a positive side. So -- but we decided to go paying with the dividend. But going forward, this is on our cards.

The next question comes from the line of Vaibhav Shah with JM Financial.

Just one question on depreciation. So it was around INR 66 crores in Q4, which was a sizable jump from roughly INR 40 crores, INR 45 crores quarterly trend. So how do you see it going forward?

So going forward, it will be more or less on the same line because if you see in financial year '25, we have made CapEx of about INR 280 crores. And in current year, we have had CapEx of about INR 400 crores. So in last 2 years, if you see INR 600 crores CapEx has been done. So going ahead, it will be a little bit elevated and to a certain extent.

Got it. And INR 65 crores should be a retail number now?

Yes, correct, yes.

The next question comes from the line of [ Dinesh ] with T&T Creation. Dinesh, are you there?

Am I audible?

Yes, Dinesh, you are audible.

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Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Dr. Nalin Gupta for the closing comments.

Thank you, everyone. We remain committed to disciplined execution, agility in dynamic market environment and delivering transforming -- transformative infrastructure projects that support economic progress at scale, backed by the strength of our people and a clear strategic vision and confident that year ahead will mark the beginning of a stronger growth trajectory and create lasting value for all the stakeholders. Please feel free to reach out to our IR team for any clarifications or feedback. Thank you, everyone, and have a great day.

On behalf of J. Kumar Infraprojects Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.