KNR Constructions Limited (532942) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q4 and FY '25 Earnings Conference Call of KNR Constructions Limited. Please note that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, sir.

Good morning. Thank you for joining us today on the call to discuss the financial results for Q4 FY '25. Along with me, I have Mr. -- Shri K. Jalandhar Reddy, Executive Director; and Strategic Growth Advisors, our Investor Relations advisers. We have uploaded results and the investor presentation on the stock exchanges as well as on our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events, post which we will have a question-and-answer session. The road infrastructure sector witnessed a slowdown in the previous financial year. But the last quarter has shown promising sign of the recovery, with improved project awarding and execution activity. The positive momentum has been supported by key policy reforms from the Ministry of Road Transport and Highways, the enforcement of the fixed time line for land acquisition and statutory clearance, including forest and wildlife approval, which is a much needed step to expedite project execution and minimize delays. Additionally, the revised policy to impose additional performance security on aggressive projects encourage more responsible and financially sound bidding practices. These measures are designed to streamline executions, reduce cost overrun and ensure timely delivery, which also addressing long-standing bottleneck in the project approval process. One of the most ambitious initiative by MoRTH is in plan to upgrade 25,000 to 30,000 kilometers of the 2-lane highway into the 4-lane corridor, with an investment outlay of INR 8 lakh crores to INR 10 lakh crores. The large-scale transformation will significantly boost highway capacity, road safety and regional connectivity. These are expected to bring greater transparency, enhance quality assurance and reduce execution delay. FY '26 is poised to maintain robust momentum, with MoRTH targeting the construction of over 10,000 kilometers of the highways, prioritizing the modernization of existing infrastructure and improved connectivity across the Northeast region. Furthermore, the planned rollout of 5,800-kilometer high-speed corridor network is expected to significantly enhance national connectivity and drive economic growth. Finally, the convergence of the policy reforms and greater capital investment painted a highly promising picture for the sector. Now coming to the key updates of the company. The percentage of physical progress as of March 31, 2025, for the HAM projects is as follows: Ramanattukara to Valanchery, approximately 95%; Valanchery to Kappirikkad, approximately 93%; Chittoor to Thatchur, approx 91%; Magadi to Somwarpet, approx 89%; and Marripudi to Somvarappadu, approximately 37%. As of March 31, 2025, the company has already invested INR 651 crores out of INR 990 crores revised equity requirement for all these HAM projects. The additional equity requirement of INR 339 crores to be infused INR 210 crores in FY '26 and around INR 130 crores in FY '27. You can refer to the Slide #26 of the investor presentation for details on each HAM project. As per the share purchase agreement in October '24, KNRC Holdings and Investments Private Limited, which is a wholly owned subsidiary of the company, has successfully completed the transfer of entire shareholding to -- in KNR Muzaffarpur Holdings for consideration of INR 1 lakh. And further, the company KNR Constructions Limited has transferred its entire shareholding of 0.65% in KNR Muzaffarpur-–Barauni Tollway for a consideration of INR 45.90 lakh. Moving ahead, in April, company secured appointed date for both the project Mysore to Kushalnagara package 4 and 5. In May, the company received the provisional completion certificate for Chittoor-Thatchur package 3, making its completion 40 days ahead of the schedule. The early delivery has made the company eligible for bonus of INR 3.26 crores. On May 21, 2025, KNR Constructions Limited, along with its wholly owned subsidiary, KNR Ramanattukara Private Limited, has received a show cause notice from the NHAI for a partial damage of an under-construction VUP in the Kerala. This was just due to some indeterminate subsoil condition and high water table. One of the approach ramps with the RE wall of the VUP has yielded and caused excessive settlement. As a result, the service road is slightly distorted. And all efforts are exercised to reinstate the service road facilities on either side of the main carriageway. Further, we are still evaluating the financial impact of this event. Now coming to the order book position. As of March 31, 2025, the company's total order book stood at INR 5,052 crores. This is divided at 51% in the -- this is divided as HAM, 37%; irrigation, 28%; pipeline projects, 21%; and other road projects of 13%. The current order book will execute over a period of around 1.5 to 2 years. With the government emphasis on the infrastructure development, we anticipate new order awards in the coming quarters, and we are aiming for order inflow of approximately at least INR 8,000 crores to INR 10,000 crores by the end of '26. Now let me move to the Q4 and FY '25 stand-alone financial performance first, followed by the consolidated financial highlights. I will start with quarterly highlights first. The revenue for the quarter stood at INR 851 crores. EBITDA for Q4 FY '25 stood at INR 118 crores as compared to INR 214 crores in Q4 FY '24. EBITDA margin in Q4 FY '25 is at 13.8%. Net profit for the quarter was INR 75 crores as against INR 198 crores in Q4 FY '24. Now coming to FY '25 highlights. Revenue for FY '25 stood at INR 3,359 crores. EBITDA for FY '25 stood at INR 625 crores as compared to INR 701 crores in FY '24. EBITDA margin in FY '25 stood at 18.6%. Net profit for FY '25 grown by 47% year-on-year to INR 726 crores as compared to INR 494 crores in FY '24. Now coming to consolidated financial performance. I will start with the quarterly highlights first. The company recorded a total revenue of INR 975 crores as compared to INR 1,414 crores. EBITDA came in INR 221 crores in Q4 FY '25 to INR 375 crores in Q4 FY '24. EBITDA margin in the current quarter stood at 22.7%. The profit after tax stood at INR 8 crores in Q4 FY '25 due to consolidation adjustment on account of sale of stepdown subsidiary company. Moving on FY '25 highlights. The revenue for FY '25 grew by 7% year-on-year to INR 4,753 crores. EBITDA for FY '25 was INR 1,625 crores as compared to INR 1,048 crores in FY '24, registering 55% growth. EBITDA margin for FY '25 stood at 34.2%. Net profit grew by 33% year-on-year to INR 1,002 crores. Now moving to stand-alone balance sheet. The company continues to maintain a strong balance sheet. The working capital days stood at 93 days compared to 89 days as of March '24. The consolidated debt as of March 31, 2025, is INR 1,865 crores as compared to INR 1,258 crores as of March 31, 2024. The net debt to the equity on a consolidated basis as of March 31, 2025, stands at 0.41x as compared to 0.34x as of March '24. With this, we can open the floor for question and answers.

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

Yes. Sir, my -- couple of questions, but entirely, the questions is pertaining to the order inflow and the revenue front. So I will try to break it up as simple as possible. First, sir, in terms of unbilled revenue as on March is how much, sir?

Unbilled as on March is -- it is INR 968 crores.

Yes. So now if we remove this INR 968 crores from our order book, INR 5,052-odd crores, so roughly INR 4,085-odd crores order book comes. So first, out of this, how much we can execute in FY '26? That will be first. Then I'll come back.

That's right. Out of our -- what you said is that out of INR 5,000 crores, if we remove around INR 1,000 crores, almost INR 4,000 crores kind of order book is there. So definitely, we see the -- we can execute this year between INR 2,500 crores to INR 3,000 crores with the existing order book only. If we are receiving good project in the -- maybe by the end of third quarter or fourth quarter. If we receive right now, the execution may start end of third and fourth quarter, then we can look into. Otherwise, definitely, as already told our previous slide also, this is -- '26 also will be the -- based on the one we are receiving that -- based on that only, we can really predict. But based on existing order book, we can go up to INR 2,500 crores to INR 3,000 crores.

Okay. So now coming to in terms of the order inflow and the bid pipeline. So if you can help us that what we are looking at INR 8,000 crores to INR 10,000-odd crores. So previously also, we have mentioned in terms of MSRDC project, where Patel Infra, we are looking at subcontracting there. So if you can specify from NHAI, from state level, from this MSRDC, what kind of projects are we looking at? And when can we expect to receive this INR 8,000 crores to INR 10,000-odd crores? And likely in terms of the execution from this new order inflow, how much one can look at in the FY '26?

Actually, so that MSRDC one we speak about is that actually -- that cabinet approval is due for that. I think it has been recommended by -- from all the other parties. And finally, it is due for that. I think within a month, we should get the cabinet approval. After that, I think within a month -- I think, a couple of months, we shall get that LOA for that. That's what we are expecting, sir. So soon after we get the [ receipt ], that work may come into revenue after 2, 2.5 months from that, the issuing of that LOA. Because it's an EPC project, it can be started as soon as possible.

And here, the value would be -- I hear the value would be INR 2,500-odd crores, MSRDC?

Sir, actually, INR 2,400 crores. Maybe some JV margins and all we should take out and consider it INR 2,200 crores kind of levels. And apart from that, sir, we are also pursuing severely in many mining areas and all other. We have placed a bid in NTPC. We have placed -- now we are going -- we are planning in Singareni. We are planning in Western Coalfields. We have placed certain bids also there. The results are due, and we shall get back with the details whenever -- with these projects. And the state government tenders, also we are focusing. In a couple of months, certain tenders are likely to float down. I think in 2, 3 months down the line, we shall have the considerable bids we are having in the hand, actually.

Okay. So sir, if you can specify the value in terms of this mining, state level and NHAI, the total value that we are looking to bid in next couple of months. And maybe even previously, we are looking at water also. So if you can -- MP, Rajasthan, we were looking at?

I think that overall total, we -- as we speak, we are looking at almost INR 30,000 crores, INR 40,000 crores or so NHAI bids. And the state highways also, there were around INR 12,000 crores to INR 15,000 crores likely to come up in the coming 2, 3 months time. And apart from that, mining, INR 2,000 crores, INR 5,000 crores in a tender of, say, 4 years, 3 years, 2 years, 5 years also there, the tenures are different in that.

Okay. Okay. Got it. And then lastly, sir, in terms of the margin -- EBITDA margin. So this quarter, obviously, it has come down slightly. So normally, we used to target close to 15% to 16% kind of a number. So now how one can look at the EBITDA margin?

I think actually around 13%, 14%, [Foreign Language] Maybe a little bit of -- minus 1%, 2% we are expecting because that overheads will be higher and that turnover is little lesser. So that may count a little bit problematic to us. That's why we are a little bit downgrading the expectations also.

Because, sir, these are the [indiscernible].

Some disturbance is coming...

Is this fine, sir, now?

Now it is better, yes.

Yes. Sir, lastly, the irrigation, when can we -- have we received any money? When can we expect the money? Because this INR 1,200 crores, INR 1,300-odd crores is pending. So how -- are we confident that we will be getting this money?

Irrigation, sir. Irrigation, we have even spoken to Minister last week, sir. They said a couple of months, we shall solve this. That's what they are saying. We are hoping for the best in this, sir. We've been -- we are really pursuing, and in both cases also, we would like to move. But the department said, wait for 1 more month and then move it, like that, as it is likely to getting set down in -- settled down in 1, 1.5 months' time. So we just -- we have given it to the lawyer, and they are ready to file it also -- The day we say yes, it will go on.

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

Sir, of our irrigation order backlog, what would be the unbilled portion?

Unbilled will be around -- almost INR 500 crores, actually.

Sir, the last time also it was around INR 500 crores. So it is a similar number?

Similar number, actually. Because this quarter, certification has happened in package 3 and some certification in package 4. So number is the same.

Okay. So basically, out of INR 1,400 crores of order book of irrigation, we can expect an incremental revenue of INR 920 crores -- around INR 900-odd crores?

Yes, yes. Around INR 900 crores, yes.

Okay. Sir, secondly, what would be our revenue guidance for FY '26? So you mentioned that from current backlog, we can do INR 2,500 crores to INR 3,000 crores. So what more can we do from maybe if we get this MSRDC orders started and some few more orders as well?

MSRDC could start in coming 3 to 4 months' time. Actually, 2 months will take for LOA only. After that, 2 months for our mobilization and then start on it. So it may take 4 months from now, the revenues will start because most of it is on the actual site. So expecting maybe structures also will be going on parallelly. So I think around INR 400 crores to INR 500 crores -- INR 300 crores to INR 400 crores that we can book on this year. And because it will come in the last quarter kind of time. So maybe now, I think, one quarter is almost over this year.

So entirely, what would be our guidance on an overall basis for FY '26 in terms of revenue? Can it be flattish or some growth or we may see some decline?

So guidance is definitely -- right now, we cannot put it. What we told is existing order book, definitely we can do between INR 2,500 crores to INR 3,000 crores. And based on when we are expecting this project [indiscernible] new orders based on this MSRDC or other projects. So based on only that we can tell. So that's why when we receive the LOA of that project, after that, we can really give the correct guidelines to you.

Okay. Sir, secondly, on the water pipeline order, so how do you see the execution moving in FY '26? Can we do somewhere around 35%, 40-odd percent in that project?

Yes, yes. We can expect that. Around INR 300 crores to INR 400 crores, definitely we can target.

Okay. And sir, lastly, I wanted some order backlog numbers for a couple of projects. So what would be the backlog for Valanchery to Kappirikkad?

Valanchery to Kappirikkad, it is INR 108 crores.

And for Ramanattukara to Valanchery?

It is INR 98 crores.

And for Chittoor-Thatchur?

Chittoor-Thatchur is INR 122 crores.

And lastly, for -- we have not done nothing in the new irrigation project, right? It is yet to start, the 2 new ones we won?

So 2 new ones, we have appointed just only last month, and there's one way is Ongole Road [indiscernible]. There is INR 385 crores...

That you have given in the presentation, yes. So what would be the run rate for these 2 newly won projects, irrigation ones? And have you bid for any other projects we are expecting on the irrigation side in FY '26?

Irrigation, we are bidding, sir. Actually, there are some bids. From Telangana, very few bids are there. But Andhra Pradesh, there are a few bids coming up. Some APGENCO projects are also coming up. And then Bihar, there are projects in irrigation. And Madhya Pradesh also, there are projects in irrigation. So we are pursuing all these very closely. And Rajasthan HAM irrigation is also there. There also we are [ discussing ], I think, working...

And sir, on the Amaravati development. So over there, any -- are you seeing any opportunities? Have you bid for any projects?

Actually, sir, that I think -- upcoming bids, we are now placing. Few bids we have placed, but we didn't get it. But upcoming, we are now placing. I think there's a likely big bunch -- a big bunch is likely to come up now.

Okay. And sir, lastly, on the show cause notice you received, so are we -- both subsidiary and the parent company, both are banned from bidding, right, for a month?

No, sir. Actually, that order could have -- would be very clear that it is concessionary barred from bidding from NHAI.

So we, as a parent company, can bid for the projects?

Sir?

We, as a parent company, can bid for the -- for NHAI projects now?

That's what our interpretation, and we are even telling the department like that. They have not mentioned about parent company at all. There -- in the show cause notice, they have asked why we should not take action against you, like that.

[Operator Instructions] The next question is from the line of Niteen Dharmawat from Aurum Capital.

Am I audible?

Yes, yes, perfectly audible.

Yes, sir. So sir, the last quarter, our order book was INR 3,800-odd crores. And this quarter, the order book has gone to INR 5,000 crores. So it's an addition of around INR 1,100 crores. Can you please elaborate what projects got added over here? And what is the visibility for these projects?

Actually -- because what has happened, these 2 projects actually we got the appointed date, actually, that package 4 and package 5. That is almost INR 1,200 crores project actually. And we got around INR 400 crores of the irrigation project. So that has also added in our order book. So with this and in some of the projects, we got actually COS. So all put together, around INR 2,000 crores has been added actually in this year. So that's why it has come to last year's INR 3,800 crores. Now, this comes to INR 5,200 crores.

Got it. And any more appointment dates which are pending now?

No, no, no. We have got all appointed dates for our existing projects.

The next question is from the line of Saket Kapoor from Kapoor & Company.

Sir, when you have mentioned about the top line in the vicinity of INR 2,500 crores to INR 3,000 crores, we are talking on a stand-alone basis or on the consolidated part, sir?

That is on a stand-alone basis only.

Okay. So what should be the likely number on a consol basis?

Consol basis, maybe because -- now maybe you can say INR 400 crores, INR 500 crores extra will come there, sir.

Okay. So at best-case scenario, we will fall flat in the top line part as on last year's numbers that -- when we compare it with the last year number. So it was INR 3,359 crores. Last year, we are really closer to that at best, depending upon how the intake pipeline looks like going ahead. That should be the understanding.

So that's why we told that, based on our existing order book, we can reach to that extent, between INR 2,500 crores to INR 3,000 crores. But based on when we are expecting these projects, these projects will come actually, and they will start contributing from end of Q3 or Q4. Then we can target a little bit more. But that visibility, we can get when we receive the LOAs. So far, we have not received the LOAs. That's why we could not able to really predict it. If there was some -- and there is still spillover to the next year, then definitely, this year, we cannot. We will end with between INR 2,500 crores to INR 3,000 crores.

Okay. Sir, secondly, on the irrigation part, I think so the Ken-Betwa project, DPR is also there, and some order pending has happened. So have we participated in this? Out of the order book, do we have any portions for execution for the Ken-Betwa project also?

Sir, we are not amenable, but definitely, we want to participate. So far, we have not looked at that. Interlinking of projects are coming. That is coming in southern part also. So we are definitely really looking forward to participating in the project, which is backed by the central government like that, like interlinking of projects. So we are looking actually at that project.

And sir, secondly...

Sorry to interrupt you, sir, but we request you to rejoin the queue for follow-up questions.

Just 2 concluding ones, if he allows.

Yes, yes, okay, sir. Please, sir.

Sir, only point was, sir, in the pipeline projects, do we have exposure through the Jal Jeevan scheme, wherein our receivables or the execution phase has slowed down? If you could comment. And also last point was on the dividend payout ratio, sir. Being an investor, I would like to understand, how do we conclude with the dividend payout of INR 0.25 per share on a consistent basis for the last 4 years? These were the two -- my concluding questions. I'll join back.

Okay. In respect, sir, of this -- our pipeline projects, definitely, this is backed by actually Amrit scheme of the central government. And their central government will fund 25%, and 75% with the state government. So we are not seeing there any delay as such. We have put the bill and we have received the money also. So there is no -- I would say, as of now, we aren't seeing any funding concerns. So as far as dividend payout is there, definitely, because this is our -- what is our practice is that actually whatever the accumulated results are there, definitely, we want to intact our cash for our future expansion. Like that, we are getting some mining projects, and we are also looking for some BOT Toll assets also if we can participate. So definitely, whatever the money, if we want to keep in the system, to put -- to enhance our capability and go -- and do the diversification in the other sectors. So that's why we've maintained the same dividend ratio as of now. But future definitely, based on company performance and future cash flow, we definitely look to consider that, your point, sir.

[Operator Instructions] The next question is from the line of Jainam Jain from ICICI Securities.

Sir, my first question is why did we have such lower margin in this quarter compared to previous quarter? And what kind of margins are we looking going forward?

The reduction, we did explain because basically -- now what are our -- there is some disturbance...

Am I audible right now?

Mr. Jainam, there is a disturbance -- background disturbance from you line. So we request you to just mute if possible after your question.

Hello, am I audible right now? Sir, I hope you got my question. Or should I repeat?

No, no, no. We understand but there is some background disturbance was there that we are telling. If you kindly mute your line then we can explain better. In respect of this reduction in our EBITDA that already we explained that the reason is being that now whatever our existing order book is there. So almost all projects, except for the new one, all projects is almost frag end. Almost we have completed around 90% to 95% of that project. So if we are executing actually in that project because project will be in the last phase, then we could not able to generate that much of revenue. Accordingly, expenditure will be a little higher. So that's why because due to this frag end of the project, we could not able to get the, what are the EBITDA we are adjusting. But definitely, as always, we are telling that between 13% to 14%, what is our guideline. Definitely, we are there and we will achieve that. But as far as future margin is concerned, so existing order book will give same between 13% to 14%. And when we are adding the new projects actually like in MSRDC or mining or other sectors. So definitely -- and if we are getting some good irrigation project because irrigation projects have very better margin. So definitely, in that case, it will improve actually in the future.

Okay, sir. And sir, my second question is what is the kind of bid pipeline which we are seeing for FY '26? And what sort of total order inflow which we are looking to add in our order book?

So, this year, we are targeting somewhere between INR 8,000 crores to INR 10,000 crores. We are targeting to add in our order book. And as far as the pipeline is already -- has explained little bit, for NHAI project INR 30,000 crores to INR 40,000 crores, NHAI projects are there that we want to bid actually. And state government projects also, they are between INR 10,000 crores to INR 15,000 crores are there. So there is plenty of orders are there, definitely, but we have to bid and we have to get it because due to this aggressiveness, we are really seeing that how we can get these ROIs.

Okay, sir. And sir, given the fact that we have...

Sorry to interrupt you, but we request you to rejoin the queue for follow-up questions. The next question is from the line of Bhavin Modi from Anand Rathi Financial Services.

Sir, first thing, I wanted to know the breakup of the revenue contribution. So how much is the road hybrid irrigation, EPC? So can you just help me with the percentage for the Q4?

Sir, Q4, actually, that's -- HAM is around 46%, sir. Irrigation, 19%; road EPC, 30%.

30%?

30%, 3-0. And back-to-back it is around 4%.

Yes. Sir, second thing I have, sir, since there has been like a negotiation and doing finalization going right? For the monetization of the upcoming assets. So now I think the management must be clear with the tentative consideration that will be received and the time line. So can you just help us with what is the consideration that we are looking for?

Sir, that's the -- on the consideration aspect, we are just -- that final discussion is going on. So right now, in this aspect we cannot help. So definitely, it is under very advanced stage actually and almost all discussion has happened. And final 1, 2 sittings is only required actually to do the final negotiation. So we expect that by, maybe, by mid of July, actually, we should be able to conclude that transaction and sign the sign the SPA.

And sir, third thing, as mentioned, now we are looking for the diversification of the order book. So are you looking for any partnership or something like that for projects like example, railways or airports or river interlinking projects. So there are many opportunities coming there. And even in case of suppose if our focus is on road projects, so are we looking for some complex projects where there's a tunneling or elevated structures are involved? So can you just help how the management is now looking to ramp up or diversify the order book?

Yes, sir. We are pursuing all the opportunities, sir. Actually, we have started JV with NCC for some set of projects. And there are some mining projects we have started with Sushee and Harsha. See wherever we are non-qualifying, sir, we have tunneling -- even Patel Engineering is ready with us to go with the -- for the joint ventures. So we are -- wherever the new sectors that we would like to -- we are opening floor for all that because now that road sector is a bit heated up. So we would like to go to other sectors and recoup our order book and then once the road sector becomes okay, then we would probably even go in the roads also, kind of that which we are planning. So, for which we are tunneling, we are open, we are open in the metros, we are open in the flyover projects in various cities. We are open in irrigation projects. We are open in powerhouse projects. All that we are pursuing, sir. Then recently, we're mining also, we are severely pursuing for tenders. So hopefully, I think down the line -- 2, 3 months down the line, we shall have enough orders in the hand. That's what we are expecting.

From my end, so it's pleasing to hear that...

Sorry to interrupt you, sir, but we request you to rejoin the queue for follow-up questions. The next question is from the line of Mudit Bhandari from IIFL Capital.

If you look at stand-alone balance sheet, our receivables as well as other current assets or other financial assets have significantly expanded. So, is there has been any reclassification or any reason why other current assets -- other financial assets have expanded?

So, basically, other finances, as the unbilled revenue was there. Last year, it was around INR 497 crores. And this year, it becomes to INR 968 crores. So basically, this is the reason that's why this other financial assets has gone up.

And this is majorly of irrigation?

Yes, basically of irrigation. And trade receivables have actually gone down from INR 1,364 crores now it is INR 1,244 crores.

Okay. Okay. Got it. And secondly, in terms of the projects which you are highlighting from NTPC, either Singareni or Western Coalfields or either the mining area. So whether we are looking in a sort whether we will be doing only EPC work, right? Or any other arrangement basis?

These are the EPC work, MDO like mining development operation. So these...

And EPC is kind of operation projects and MDOs both we are pursuing, sir, because wherever the margins are important, so we will focus to have margins only, sir.

[Operator Instructions] The next question is from the line of Vasudev from Nuvama Wealth.

So, Sir, I'm just circling back again on the Kerala credit issue. So how long do you think this ban can extend? Because there are a few media articles which says that the ban is for 1 year. And even on our intimation to the stock exchanges, we have mentioned that it is 1 month or the conclusion of investigation whichever is later. So what is the exact extent we expect this ban to be? And do you think this can extend to the parent company as well?

Actually, that the notice clearly says that the 15 days notice is given for us to show cause, telling which why we should not devalue for 1 year and then small penalty is there, 0.5% of the value, okay? Then these -- actually, we have given the confident -- we are very confident that we have not done any mistake there. It's a complete waterlogged area where the technically -- because of the water loggedness in the -- somewhere in between the -- beneath the foundations that particular area has been submerged. It has been settled. So there -- because of that under construction only, it is not operated or we have not given that road for any operation also because -- see, everybody says that the safety -- in that -- in the show-cause notice, they've used the word, you've compromised the safety of the public. We said it is not operated. It is not even open for the traffic actually. That's what we have said. And we have confidently replied with our designs, whatever the designs which we were envisaged before DPR or before exhibition. I think all the approvals, whatever we have taken from the concerned authorities and concerned IE, independent engineers, all that we have kept forward. So with all that, I think this issue should be settled with NHAI so that we will not have any further course of this thing. But however, we can even have an option to go legally to protect ourselves from all this.

Okay. Sure, sir. That is helpful. And sir, second question, just a few bookkeeping questions. CapEx numbers, execution that we've done in FY '25 in the pipeline and the irrigation projects and outstanding receivables from the Telangana government.

Pardon, sir?

Sir, the CapEx numbers, execution that we did in FY '25 in pipeline and the irrigation project and our outstanding from the Telangana government, just these bookkeeping numbers?

The CapEx we have done for the year is INR 22 crores. And the execution for the irrigation is -- for the quarter, it is INR 152 crores, it is 19%.

Okay. And sir, the pipeline projects and the Telangana outstanding?

Pipeline projects, we have done INR 30 crores of turnover. And one more, what you have asked?

Our outstanding from the Telangana government.

Including unbilled revenue, it is INR 1,200 crores.

The next question is from the line of Dheeraj from Avendus Spark.

Am I audible?

Yes, yes, you are audible.

Yes, so just one question. Can I get the adjusted revenue EBITDA and PAT for the full year FY '25 adjusting the arbitration claim and the other things?

For the full year?

Yes, for the full year and the current quarter if possible.

Current quarter, there are no one of the items. But for the full year, it is 15.94%.

EBITDA margin. And the revenue, sir?

Revenue, it is INR 3,234 crores.

Okay. Okay, sir. And PAT number for full year adjusted?

PAT number, adjusted number, it is INR 339 crores.

INR 339 crores. And sir, what you said about the EBITDA, sorry, I missed that point, adjusted EBITDA?

EBITDA for?

Adjusted EBITDA for the same period.

It is 15.94%.

The next question is from the line of Bala Subramaniam from Anand Rathi Financial Services. Sir, we cannot hear you.

Am I audible, madam?

Yes, sir.

Yes, now...

Yes. Actually, I'm Bala from Arihant Capital. Sir, my first question is regarding what percentage of the current receivables is over 180 days and how we are mitigating the counterparty risk, especially from the government projects? I think INR 921 crores is on the receivable side.

Basically, most of the receivables are from the irrigation only, the pending receivables, which is almost INR 500 crores. And the rest of the money from our SPVs only, HAM SPVs that we can draw money at any time. And on the irrigation receivables, it is already intimated that we are following up with the authority, and we may receive in near future.

And sir, like any specific reason for delayed progress in newer HAM projects, especially in KNR Sriranganatha and KNR Kaveri Infra?

No, there are no delay in the execution. We have received the appointed date at a later point of time because of the ROW issues because authority took the more time to issue the -- take the ROW and issued the appointed date at later time. There are no delays because it has been -- we have received in the previous month only, we have started our execution.

Okay. Sir, like what kind of impact like from FY '25 union budget on EPC tendering volumes in irrigation and highway sectors?

EBITDA margin from the...

No, sir. I'm asking this union budget on EPC tendering volumes in irrigation and highway sectors.

Sir, this is definitely the infrastructure sector has to grow actually. So there is a lot of opportunities are there and government is definitely pushing that. But due to now NHAI has made the policy that until the clearance, they are not going to bid the project. That's why bid is getting postponed. But we expect that definitely there is a lot of opportunities there in this sector. And -- but there are some delays actually due to this election and decision-making. So -- but now we expect that next -- this year onwards, it will definitely pick up actually. And as we told that government, we are now planning from 2 lane to 4 lane actually, almost 30,000 kilometers that outlay of around INR 8 lakh crores to INR 10 lakh crores. There is a lot of opportunities are there, but we have to just wait actually when it is coming and we have to take it.

[Operator Instructions]. The next question is from the line of Parth Thakkar from JM Financial.

Just wanted to know what is the current outstanding irrigation revenue?

What is the outstanding in irrigation?

Irrigation -- receivables, it is around INR 790 crores.

And are we trying to monetize any of our HAM assets? And if we do, what would be the multiple we would expect?

Your voice is not clear, sir.

I wanted to know that are we targeting to monetize any of our HAM assets? And if we do, what is the multiple we would expect from it?

Definitely our 4 assets -- we are in the process of finalizing the share purchase agreement. And as we told that by mid of June actually, we will try to close it. So -- and that negotiation is going on actually. So at this stage, we cannot disclose it. But definitely, we want to monetize these our 4 assets.

[Operator Instructions] The next question is from the line of Jainam Jain from ICICI Securities.

Sir, what is the mobilization advance as of now as of March '25?

Mobilization advance, it is around INR 20 crores.

INR 20 crores?

INR 20 crores, yes.

Okay. And what about retention money?

Retention money is, it is INR 846 Crores.

INR 846 crores, okay. And sir, my second question is what is the total executable order book as of now in our books out of total order book of INR 4,000 crores? And like is there any slow-moving orders going on?

INR 4,000 crores is now net adjustable order book is there, sir.

Okay. And is there any slow-moving orders as of now?

No. These all are -- no, sir, all are good order book.

Good progression. Okay. And sir, what sort of arbitration claim are we looking going forward in FY '26 and '27?

We have received award from some of the projects, but that our counterparty has gone to the court. So definitely, in this year actually, we may not know actually how much this is going to come because it will take at least 4 to 5 years actually to close that. So now basically, this Odisha, one of the -- Arunachal project, we got the award actually around INR 319 crores of the project but that actually has gone to the court actually, so it will take 4 years.

The next question is from the line of Parikshit from HDFC Securities.

Sir, in this case where the show-cause notice has come, so we have to correct the bridge where there is a damage? So I wanted to understand what could be the impact and whether it is covered under insurance?

Yes, sir. Actually, it may not get covered in the insurance, may not or may will [indiscernible] we have intimated and that they are examining the case. And the main cause of failure is because of the poor subsoil below the foundation. Actually, we can't say that because while working the foundation was very good. But somewhere between the layers of the earth below the foundation, much below the foundation, there could be some pool or some tapped, what we call flushy kind of soil in between layers. So that has caused this thing. It is nowhere intentional because the proper approvals were taken and the total examination of the foundations were done during the earthing because subsoil investigations were also done, but not in this location, but a little bit away from that. But in that, I think that particular area, we couldn't tap anything of that kind of sound that it is having some weaker foundation kind of results we are going to get. So accordingly, the designs and all were made. Strata Geosystems, one of the best RE Walls agency who has done the work for this actually. And they have designed and the design was also verified, approved by the concerned authorities. And then after that only the execution was taken place. So as such, we didn't see anything. It's kind of accident only. We also treat this as an accident only. But however, getting through insurance and all maybe that will be -- after their examination and their concerns only we'll be able to know. But as far as NHAI is concerned, now because of that situation, there is a local demand for making a viaduct. So viaduct is almost costing about INR 830 crores nearby. if the length is increased a little bit in length, it may go up. But otherwise, INR 25 crores to INR 30 crores is the rough estimate what we have made. I think, I'm saying around INR 30 crores. So that INR 30 crore impact will be there. And it is the same. Actually, the proposals while the DPR consultant who made the DPR, he has proposed RE wall on the service road side, where we have observed some water loggness on the service road side, and we have done retaining one instead of RE wall. RE wall cannot be done also. But main carriageway side, we have seen every clarity was there during that time. So that time, we have done the RE wall only. So maybe it start somewhere in the subsoil, there is a weakness, what I told you earlier, that's because of this. But we do not know any sort of -- again, if -- file investigation and again, designs are going on. So I think viaduct will be a proper solution so that in future also, we should not have any doubts because we have to maintain this road for another 15 years. And if we have any certain doubts and ifs and buts and things will not work. So what we are also proposing with NHAI that to go for a viaduct and solve this problem once for all so that in the future, we shouldn't see anything kind of that. It is around INR 25 crores to INR 30 crores proper estimate.

Got it. And the second question is on the ban period. So you -- sorry, I missed it earlier. So you were saying it will be 1 month or the period of investigation, and it will not be for 1 year, which is reported by media, right?

Yes. Actually, we have to immediately close. Actually, we have closed ourselves that our designs are at work now to prepare the viaduct proposals. And NHAI we are writing a letter for NHAI with our proposal. NHAI has asked you come up with your proposal also. So since they are asked for our proposal, then we are bringing up all the matter. And since this is an original contract is to go for RE wall and now we are going for a viaduct, it's a complete contract and it is a complete change from the existing scope, okay. I may not take money for whatever I have done. But the thing which I'm going to do, it's a new proposal and it could be under change of scope. But however, we will be in touch with NHAI. Rather, if they don't pay, we may have an option to go for arbitration also. But anyhow, we are hoping that the problem should be solved and public should be off with the problem.

Okay. And just on the revenue guidance, last thing, sir, you -- so what kind of guidance for MSRDC is there in FY '26, what kind of revenue or growth you're looking at or degrowth you're looking at?

Actually as I already explained, because right now, with -- based on our existing order book of INR 5,000 crores, we can execute between INR 2,500 crores to INR 3,000 crores in our existing order book. And further based on when we are receiving the orders from MSRDC and other things based on that. So that's why -- once we receive the LOA or we receive some like definitive LOA like that, then only really we can comment on order book. But based on our existing order book, we can execute between INR 2,500 crores to INR 3,000 crores.

We'll take our last question from the line of Shravan Shah from Dolat Capital.

Just 2 things, sir. CapEx for FY '26 will be given that if we receive this INR 8,000 crores, INR 10,000 crores and maybe in the new segment, what kind of a CapEx, maybe not this year, maybe in FY '27, do we have to incur a decent CapEx?

Definitely, sir. Definitely based on -- because our existing CapEx can take care of our existing and maybe some -- we can use 50% of this CapEx in our new projects. But when we receive new project like MSRDC or some mining or some other things, definitely CapEx requirement will be there, maybe not in '26, definitely in '27.

Sorry, sir, 20% -- I missed the last line.

Maybe not in '26, might be in '27 actually we have to incur CapEx for these our new projects.

Okay. So '26 would be the similar kind of INR 20 crores, INR 30-odd crores, but FY '27 can see maybe INR 100 crores, INR 200 crores kind of CapEx?

Yes.

Okay. And lastly, sir, in terms of the bonus, I think you mentioned some INR 3 crores, INR 4 crores kind of all. So total put together in FY '26 can -- how much bonus are we likely to book?

Bonus, that INR 3 crores what I think these are, Chittoor-Thatchur that have come in time, other than this -- other than nothing is there for bonus.

If we received from [indiscernible]. But I think it is true. I believe that Chittoor-Thatchur project, it is true. Actually approvals have come in time, and we have bonus.

Okay. So this INR 3 crores will be booked in...

[indiscernible] how they behave, how they...

Sir, this INR 3 crores bonus will be booked in the first quarter of FY '26, this quarter or it will be in 2Q?

It should receive from the first NOC only, which is due in first quarter only.

Ladies and gentlemen, in the interest of time, we'll take this as our last question. I now hand the conference over to the management for closing comments.

Thank you all for joining us on this call. Please reach out to our Investor Relations Consultant, Strategic Growth Advisors or us directly should you have any further queries. We can now close the call. Thank you.

Thank you. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.