J. Kumar Infraprojects Limited (JKIL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the J. Kumar Infra Projects Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which J. Kumar Infra projects 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 Infra Projects 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. I now hand the conference over to Mr. Nalin Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.

Good afternoon, everyone. This is Nalin Gupta, Managing Director, J. Kumar Infraprojects Limited. On behalf of J. Kumar Infraprojects Limited, I warmly welcome you all to our Q1 FY '27 earnings conference call. Joining me today are Kamal Gupta, Managing Director; Mr. Vasant Savla, CFO; and our Investor Relations partner, Marathon Capital. I trust you have all had the opportunity to review our earnings presentation and press release available on the stock exchange and our corporate website. Q1 FY '27 has commenced on a positive note with the company recording revenue growth of 2% over the corresponding quarter of the previous year. While margins moderated during the quarter, this was primarily attributable to the timing-related factors and the evolving mix of projects under execution. Importantly, our balance sheet remains strong and liquidity continues to be adequate, ensuring operational resilience. At the same time, growth during the quarter was tempered by external factors, including the U.S. Iran war and most notably, the restrictions imposed by the BMC on water usage at construction sites. This temporary ban has slowed progress on certain projects, impacting near-term execution schedules. The quarter has also reinforced the strength of our order pipeline with significant inflows already booked and a healthy bid pipeline. We are confident of sustaining momentum in order intake. This position positions us well to accelerate execution in the coming quarters, supported by expanding capabilities across our core verticals. Now coming to the financial performance, consolidated performance highlights for Q1 FY '27. Revenue from operations for Q1 FY '27 increased by 2% to INR 1,511 crores as compared to INR 1,484 crores in Q1 FY '26. EBITDA for Q1 FY '27 moderated by 1% to INR 215 crores as compared to INR 217 crores in Q1 FY '26. EBITDA margin for Q1 FY '27 stood at 14.1% as compared to 14.6% in Q1 FY'26. INR 97 crores as compared to INR 103 crores in Q1 FY '26. PAT margin for Q1 FY '26 stood at 6.4% as compared to 7% in Q1 FY '26. Net debt as on June 30, 2026 stood at negative INR 45 crores. Working capital days for Q1 FY '27 stood at 103 days as compared to 99 days for FY '26. Total order book as on 30th June 2026 stood at INR 2,246 crores. The order book comprises elevated corridors and fly of 48%, roads and road tunnels of 20%, metro projects elevated and underground at 9%, others 23%. We can now begin with the questions and answers.

[Operator Instructions] Is from the line of Vaibhav Shah from JM Financial.

I wanted the execution status on a few big ticket projects. So how is the execution going on in Chennai project?

Chennai project, we have 4 packages of central government and package of state government. So the state government project was costing INR 580 crores, which is like almost 65% completed. So we plan to hand over it by March 2027 should be completed. It is going in full swing. And the 4 packages of National Authority costing INR 3,570 crores, that projects are going very well, Mr. Vaibhav. And like the time line has been extended the initially stipulated time. So we plan to complete that by December 28 now.

And how much we have already done in terms of percentage execution?

Percentage execution of Chennai is around 20%...

So we are confident to complete by December '28?

Yes, yes.

And this extension was due to why the extension...

Extension was basically due to like the whole project is out of 25 kilometers, 21 kilometer is in the reverse. So in Come River, there are some restrictions by the state department. So that was the reason it has gone ahead. And NHAI has already given us the extension for that. That delay -- I'm sorry, for the delayed thing, we have also taken a prolongation cost from them, and they have paid us that as...

Okay. So no impact on the margins?

No impact on the margins, yes.

Sir, secondly, on the Anandagar project in Mulund. So how is the work going on over there? How much we have done? And what is our target completion date?

Anandnagar project, the scheduled completion as per government is October -- November 28, and we are well within time, of course, the initial 2.5 kilometres stretch of NHAI was not handed over because of that between NHAI and MRD, there's some decision to be taken for toll and all. So we had a meeting last week and it is sorted now. So we have got that 3 kilometres also out of 8.5 kilometres. So all other places, the work is going very good at very good pace. We have completed around 15% in Anandnagar project, and we intend to complete the same in scheduled date of October 28 this project.

And sir, same for GMLR?

So GMLR project is in full swing. We have -- yesterday, we completed 2,000 links of casting. That's around 4 kilometers of tunnel has been casted in the casting yard. And the first TBM is ready for launch for drilling in the ground physically. So we are just waiting for a confirmation from the political teams, Chief Minister and ECM. So as soon as we get a go ahead, any time Monday or Tuesday, whatever date they give, we are ready from 31 to launch. So the machine is fully ready. And the second tunneling machine is also in advanced stage of getting assembled. So in the next 2 months' time, we should be able to launch that machine also.

We were targeting closer to 25% execution in '27. So where are we on that?

So the project got initially delayed because of the tree-cutting permission and land acquisition issues, which is now fully obtained and everything is in control. So with that, we are eligible for 2 years extension. But still our internal target when we speak of is June 29. So by June 29, we intend to complete the project internally. But say, December 29 max is what we'll be going ahead. So that 2 years delay has been brought down to 1 year in short.

So by the client, the commission date is June December 29 according to client after that.

The original contract, it is November 28. But as the client didn't hand over the site and with the requisite permission for the cutting, which is beyond control of the contractor because it was requiring Supreme Court permission, we got the permission in August '25, just 10, 11 months back. And the team has done a commendable job of getting the TBM ready and we'll be drilling. So we are entitled for 2 years extension, but we won't be requiring it is what I'm trying to say that we are preponing the schedule. And by June 29 is what we are -- with a 7-month extension, we intend to complete the project and max December 29. So it will be 2 years time line delay has been reduced to at least 1 year we have only covered and we are trying our best to do it in the original time period.

Okay. Sir. So in worst case, the time line would be November 30 as per the of 2 years of extension...

November 29, sorry November 29, max. No, no.

If the client -- if you take the 2 years that they are willing to give, then the completion would be November 30.

Yes, yes. But we won't be requiring in any case. We have made a crash program and that's because the work which had to be done in 18 months, we have done in 10 months. So the TBM was as per the key date, it has to be done 18 months from the date of site handing over, which we are completing in 10, 11 months and the TBM will be launched. It's ready to launch. Yes.

Okay. And sir, lastly, on order inflow side, the first quarter has been very strong. Even yesterday, we announced the order. So our roughly announced orders till date are roughly around INR 5,500 crores. So for the entire year, what are we targeting?

So currently, as you can see for the Q1, we stand at a number of INR 5,500 crores and there is an L1 position of INR 1,500 crores for Delhi Metro underground project. So that makes it INR 7,000 crores. So that we expect in -- because it is having some international funding from the World Bank. So there is some clearances which is expected. So currently standing at, say, INR 7,000 crores, we have given a target of INR 8,000 crores to INR 10,000 crores for this year, which we are quite optimistic that we'll achieve that target for sure.

And when this BMR order is likely to be converted in Q3? I think...

In Q2, not even Q3. We have just gone with Q1. So Q2, we will surely get that order.

And sir, lastly, on the guidance for revenue growth for this year...

We are expecting a revenue growth target that we have given of 15% on the last year's top line. So that's close to around INR 6,500 crores. So that we are quite optimistic that we'll achieve this target.

The next question is from the line of Aditya Sahoo from HDFC Securities Limited.

I just had a few queries. The INR 1,500 crores which we have, that would be excluding the order book that we have right now.

Yes. So INR 5,500 crores does not include the Delhi Metro INR 1,500 crores job that you are speaking of. Adding that makes it INR 7,000 crores. So order book right now is INR 2,000 crores is the order book as on June 30, plus we have INR 5,500 crores INR 1,000 crores where we are -- we've already got the order day before yesterday, yesterday and INR 1,500 crores additional L1.

Understood, sir. The revenue guidance is at 15%, close to INR 6,500 crores and order inflow guidance would be INR 10,000 crores, just confirm on that front.

Yes, that's right. You're right.

And on the EBITDA margin front, what sort of margins are you expecting over here?

We'll be doing 14% to 15% of EBITDA margin.

14% to 15% Understood. And if I have to look at the pipeline, what would be the bid pipeline that you have right now? -- you throw some color on how that is sort of spread in terms of segment or region, what are you targeting?

We have already bided for around INR 2,000 crores of projects. Yes. And in the near future, there is around INR 50,000 crores to INR 1 lakh crore job worth of jobs that's coming, which is mainly from MSRDC, the Shakti corridors, the Uttarnagar corridor that the MR is going to come up around INR 500 crores, INR 60,000 crores and various other NHAI and the other fly and DMRC contracts and metro jobs. So there is around close to INR 50,000 crores to INR 1 lakh crores worth of jobs that we should be able to explore in the coming 9 months to 12 months.

Understood, sir. Understood. On the CAPEX part, what would be the CAPEX done in the Q1 and what sort of guidance are you sort of expecting only CAPEX of every 7 and 28?

Yeah, so CAPEX we have done for Q1, we have done CAPEX of 34 crores.

34 crores. Okay, and 27, 28 what any number that you have in mind for the GP that you're expecting?

That's one year. So, yeah, Vishwabha, it is. So it's like, you know, as we were told before also, including this Chennai and GMLR, we were saying like 250 crores for this two years plus 100 crores per year of your maintenance capex. So for the coming 2 years, it will be only INR 100 crores maintenance CapEx will be there. And INR 250 crores we have already done part of it last year anther10NR100 crores for 2 years. So INR 10 crores each year.

And just on the -- what would be the gross debt and the debt equity ratio over here?

Gross debt equity is 0.24 -- gross debt equity is at 0.24.

0.24. Understood, sir. And the net working capital days, what would be that for the June month?

Net working capital is 103 days.

103 days.

[Operator Instructions] The next question is from the line of Vedan Kabra from AVN Capital.

I just had one question. Given the strong wins, you have given a revenue guidance of 15% for this fiscal. So I wanted to know if there are any specific bottlenecks, be it in terms of approvals, working capital manpower that have to clear for us to hit that target. I wanted to understand like what has changed operationally in the last year to fix whatever that caused the FY '26 flatness, so we don't see another year of a growing order book but flat revenue. And the reason why I'm asking this is because the order book is roughly INR 22,000 crores. And last year's quarter 1 con call guidance was of 15% top line growth as well and yet revenue was flat and 2% this quarter. So I just wanted to understand your take on this.

I would like to highlight on this that as you are rightly saying that we had a strong order book. But unfortunately, the new orders that we bagged in 2024 by March '24. In that year, it was basically the 2 years that is GMLR, VDCR, Chennai Elevated Corridor these projects which we have bagged, including Orange Gate, which got cancelled. So there were some big ticket size projects which did not take off due to the land acquisition issues, pre-cutting permissions and finalization of GAD. Like in the current year also, if you see we have bagged in the current quarter, we have bagged orders of nearly around INR 5,500 crores -- so out of that, the initial period where the GAD finalization has to happen, the utility land acquisition issues, unfortunately, this takes -- sometimes it happens faster, sometimes it takes a bit longer time. So last year and '25 and '26 in this period, this process took a lot of time. And that's how we could not get the revenue like GMLR, Chennai, VCR, all these projects could not see the light of sun. But now all these projects, we can see that GMLR has gone to 26%. And in next 2 years, we'll finish the whole tunnelling. So close to around INR 3,000 crores, INR 4,000 crores worth of top line will be achieved from that project. So it is a very momentary thing which happens currently, there is, which is a little bit slow. And we expect that in a month or 2 months time, we will be able to push that project also fully on track because the JD is finalized, the land acquisition processes are done. So it should be taking off in a month or 2 months. From quarter 3, we should be able to see good push in that project as well.

Okay. Got it, sir. So basically, all in all, it was a temporary issue in terms of...

Yes. Because you can see that all the projects are live, intact and it's just a matter of time for starting those projects. Kiki it happens in a 6 months span and sometimes it has taken like in the current 2 years Q1 and the last year's time, we lost because of the approvals and clearances from the government. And there is a positive upside COS also that is happening in BDR. So such kind of things, they take a little bit time where the projects in the conception stage are not fully done as what was required. So when the public hearings and all other opinions are taken, the project is for ages or 100 years ahead. So they take some time to finalize, but there is no insecurity involved in those order books. That's what I'm just trying to put.

The next question is from the line of Dhanjay from Centrum Broking.

In this quarter has come down from Q4 level. So I mean last quarter, we indicated that due to CapEx run rate will be about INR 65 crores each quarter. So it has come down in this quarter?

See, the depreciation has not gone down at the year-end when we took the stop taking out certain -- all the plant and machinery, there were certain machineries, which were not usable. So we have depreciated that at the year-end. So that is why in Q4, the depreciation is higher. However, if you see the other quarters, it is steady.

So what will you regulate for the full year in terms of depreciation? 50 crore or 60 crore?

Right now, it is at INR 50 crores. It will increase to INR 60 crores because once the TBM is starting in the next 2, 3 days or so, the CM of INR 300 crores will be capitalized, which right now is being shown as capital work in progress. So that will be capitalized and this will add to the depreciation for the year. And plus, if you see last year, we have done capitalization of almost INR 480 crores. So the full impact of that will be felt in current year.

Sir, what is the status of Vadhwan project starting next quarter?

Yeah, Mr. Dhanjay. So, Vadhan project already our mobilisation is going on in full swing but because of rains not much can be done and there are some land acquisition to be done by the government. So that land acquisition is going on, our mobilisation of offices is going on, the surveys have been done, tree cutting permissions have been obtained from forest, we have started with tree cutting, lot of trees to be cut and lot of trees to be transplanted. So all these activities have started full swing. So after rains, the actual excavation and this work will be started only in October.

Okay. At some point of time we will have clearance from government to start the project?

Yes. So government clearance is like government is to acquire some locations, some land. So that acquisition is going on. We got permission from forest department for tree cutting. So the permissions are going on utility shifting work we have started. So all these things will be doing parallel. And actual will start in October.

Okay. On CapEx part, you said INR 100 crores will be maintenance CapEx and INR 250 crores additional CapEx for the new order...

2 years... Yes. So 1 year it is done. So there is another INR 100 crores for this INR 150 crores in each year.

So INR 150 crores plus INR 100 crores, so INR 250 crores each year for next 2 years, right?

No, no, no. INR 150 crores each year for next 2 years.

Including the maintenance CapEx...

Including the maintenance CapEx .

Whatever we have got, including L1 and all that, we are comfortable with the current level of machinery, right?

Yes, you're right. You're right.

And sir, what is the working capital position in terms of overall receivable inventory and all that?

Working capital cycle right now is 10 days, right? We have said it is 103 days working capital.

And what is your fund based limit sir fund based non funded?

Limit fund based limit is uh 1300 crores out of that 530 crores is term loans and uh balance 800 crores is uh CC.

Okay or non-fund based?

Non-fund based is 5000 crores.

Okay, and how much we have utilized from the non-fund based?

So, fund based is 39% utilized, non-fund based 65%.

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

Hi, sir. Most of the questions have been answered. Just to check in terms of now the first quarter is muted and still we are maintaining a 15% growth on the revenue front for this year. So kind of in next three quarters we need close to a 20% kind of execution growth. So just wanted to confirm that in to itself we can start seeing that kind of a run rate or maybe the second-half or second-half could be or then the requirement will may go to a 23, 24%. So that way one can be correct.

Yeah, Shah. It's like, you know, as actually told by you, H2 will be more visible because even the new project what we've got, as I told, even the one project revenue will start kicking off only from quarter three, that is H2. So the new projects what we have back even that will add to the top line so from Q2, H2. So H2 will see more but even Q2 will be better, it is not that Q2 will be flat, even Q2 the growth should be there. So overall by the year end 15% plus is very much achievable.

Okay, and even for 28 kind of 7,500 crore kind of revenue that we were looking at, so that is also can be doable?

And then for 27 also, we will achieve a 15% growth year on year that, because as you see, we have sufficient order book on hand now, so all these works are started, so we get top line of 50% INR 27 expect 28 also.

Okay, okay. So roughly the 5,500 crore odd that we have got this year. So this year in terms of the broadly if I have to look at maybe a 500 crore kind of a revenue can contribute the new orders that we have backed this year. And then next year will be the full stage revenue can start.

Yeah, it can be 500 or 400 also which is a but of course good revenue will come out of these new models also in this year as well.

Yeah and on the margin front can the next year can we see a kind of a close to a 15% because we were looking at it can inch up to 15 to 16% maybe in 1 to 2 years. So FY28 can we start seeing a closer to a 15% kind of margin?