NCC Limited (500294) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the NCC Limited Q3 FY '23 results and future outlook discussion hosted by Centrum Broking Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Shah from Centrum Broking. Thank you. Over to you, sir.

Yes. Thank you, Dovin. On behalf of Centrum Broking, I welcome everybody to the NCC Limited Q3 FY '23 Results Conference Call. Today, we have from the management, Shri. R.S. Raju, Director of Projects; Shri. A Vishnu Varma, Director of Projects; Shri. P.V. Vijay Kumar, Vice President, Finance; Shri. Neerad Sharma, Head Strategy and Investor Relations; Shri. M. Srinivasa Rao, Chief General Manager, Finance and Accounts; Shri. K. Durga Prasad, General Manager, Finance; Shri. SMVSR Raju, Deputy General Manager, Finance and Accounts; and Shri. P. Surender Rao, Assistant General Manager, Finance. So I'll hand it over to the management for their opening remarks, and after which we'll have a Q&A session. Over to you, sir. Thank you.

Good morning, everyone. This is Vijay Kumar, Vice President, Finance. I welcome everyone to the NCC Q3 FY 2023 Earnings Investor Call. I thank each one of you for taking time to attend this. Before we start, I'll read out the disclaimer and then we should go into the subject. The statements made here are in the presentation uploaded by the company are to a best of knowledge are true and any forward-looking statements are subject to certain factors beyond control of the company officials and management. And hence, the audience are advised to use their discussion in their own analysis accordingly. Now we shall go into taking the performance of the company for this Q3 into account. I'll briefly start with the opening remarks followed by Q&A. I have my colleagues, Mr. Subba Raju, Director; Neerad, for Head Strategy and Investor Relations; Mr. Durga Prasad, GM Finance; SMVSR Raju, DGM Finance and Accounts; and Mr. Surender Rao, AGM present in the call who will take your questions. Considering the time limitation, we request the audience to limit to 1 or 2 questions so that everybody gets an opportunity within the given limited time. Let us start now. I think I'll start with the brief opening remarks. We are in a peculiar situations in the economic history now. The perils and economies are like we are seeing them now after several years or decades of gap in their own rate they are structured. It all started with economic induced contraction of the global output followed by Russia and Ukraine conflict, leading to a worldwide surge in inflation. The central banks across economies led to a federal reserve led by the federal reserve responded by a synchronized policy rate hike to curb inflation. The rate hike by the U.S. Federal drove capital into the U.S. market causing the U.S. dollar to associate. Again, [indiscernible] currencies this led to the widening current account deficit and increasing inflation prices on the net importing economies like us. The rate hike and persistent inflation has led to the lowering of global growth forecast for 2022 and '23 by the IMF in its October [ 2000 ] to update a full economic outlook. Added to this, the problems of Chinese economy further contributed to weakening of the growth forecast, with inflation persisting in advanced economies and the central banking at further rate hikes, downside risks to the global economic outlook of the [indiscernible] However, despite all these issues, agencies worldwide continue to project India as the fastest-growing major economy at 6.5% to 7% in FY 2023. So this optimistic growth forecast came in part from the resilience of the win-win economy seen in the rebound of private consumption seamlessly replacing the export stimuli as a leading driven growth. The uptick in private consumption has also given a boost in production activity resulting in an increase in capacity utilization of our sector. Internally, almost all the economies are showing certain pain points in a major or minor way in this peculiar situation risen after COVID, coupled with global tensions causing supply chain disruptions. During this peculiar trouble times, India has shown its resilience in bouncing back. If you observe main drivers of Indian economy stop by infrastructure construction spending followed by consumer spending which has since pick up -- picking up. Thanks to the cost-cutting effect of government spending and the improved CapEx program across the states. Total investment in infrastructure is planned to be around like 4.5% - 4.7% of GDP. So this is hovering very well for industry as a whole. In 2022-'23, the states also have budgeted an increase in capital outlay by 38%. So as per RBI report, Union budget 2023 capital investment has also increased by 33% to INR 10 lakh crores. So this is pertinent to note that at this level of spending, we are -- our nominal GDP will be at the rate of 10.5% growth. And the companies like NCC, which are into multifold operations like buildings, water, electricity, road, minings and all, they are so well positioned to capture all the opportunities that are happening in the various segments of infrastructure in India. So NCC with book size of INR 41,862 crores of order book of all the segments remain as one of the spearheading companies in Construction segment. I'm coming to my last part of this. We remain pleased of our economy considering infrastructure spend driven growth. The Indian economy will grow at average nominal growth in double digits from 2022 to 2030. The high investment rate, which matches some of the peaks of earlier years continue to be supported by CapEx of central government. I now pass on this to my colleague, Mr. Subba Raju, Director, to bring our salient features of our financial performance to you. As I said, please consider a chance to others to and choose and limit your questions without repetitions.

Thank you, Mr. Vijay Kumar. Good morning to all of you. Rest I take to you. First, order book. Thereafter, consol company performance and thereafter stand-alone performance. And thereafter, I briefly touch about the balance sheet items. But I restrict to the some important points. And thereafter, if anything, if you people require drop question and answers we will clarify those items. So if we come to the order book in the current quarter, the company secured about INR 5,495 crores. And further, in January month, also, the company secured INR 1,700 crores. So the total orders for the 9 months period, we take about INR 12,612 crores. So if you take up to January '23, the total order so far secured by the company INR 14,367 crores. So we have about L1 orders INR 3,000 crores as on date. So we source that in the current 9-month period, the order booking is relatively better than the previous years. Now the order book with all these things stands at INR 41,862 crores. So if you come to the performance of the company on a consol level, it has reported a turnover of INR 3,904 crores against INR 3,033 crores, an increase of 29%. In the earlier quarters, you might have observed about the growth is about plus 40% is there. And now the growth for the third quarter reported at 29%. The gross profit margins in terms of absolute terms, increased from INR 464 crores to INR 626 crores, a growth of 35%. In terms of gross margin percentage, it has come down from 16.27% to 15.38%. For that, the reasons already we explained in the first 2 quarters because of the material input prices compared to the previous year. There is an increase happened, but softening is happening from the second quarter onwards. But compared to the previous year 9 months, still the prices -- the commodity and good prices are still higher than the prices what prevailed in the first 9 months of the previous year. As a result, the margins impacted there. Now comes to the EBITDA. We increased from INR 276 crores to INR 376 crores. But in terms of percentage, there is also an increase in the EBITDA from 9.11% to 9.64%, a 0.53% increase happened at EBITDA. Coming back to the PAT. There is a significant improvement happened in the PAT level, about more than 100% jump from INR 76.42 crores to INR 157.70 crores. So in terms of percentage, the net profit is increased from 2.52% to 4.04%. And comes to the EPS. Also there is almost a double increase happened from 1.3x to 2.5x. This is about the Q3 on year-on-year basis. And slightly I mentioned about the quarter-on-quarter. If you take the quarter-on-quarter, there is an increase in the revenue by 15% from INR 3,405 crores to INR 3,904 crores. And gross profit also increase happened from INR 518 crores to INR 626 crores, a 21% increase. And EBITDA also increased from INR 310 crores to INR 376 crores. And in terms of percentage from 9.11% to 9.64% that increased from INR 131 crores to INR 157.70 crores, about 20% growth. So in terms of percentage from 3.8% to 4%. So this is about the third quarter performance relating to the year-on-year and quarter-on-quarter. Now coming back to the 9 months comparison. Performance of the 9-month performance comparing with the same corresponding period of the previous year, the revenue increased from INR 7,717 crores to INR 10,660 crores or 38% growth. And gross profit increased from INR 1,260 crores to INR 1,645 crores, a 30% growth. But the gross profit declined from 16.47% to 15.66% for the same reasons what I explained just now. EBITDA increased from INR 754 crores to INR 994 crores. In EBITDA percentage, there is a decline from 9.84% to 9.43%. So 9 months are concerned, but third quarter concerned, some increases have happened. PAT increased from INR 240 crores to INR 418 crores, about 74% increase in the 9 months of operations. In terms of percentage, it has increased from 3.12% to 3.9%. EPS also increased from 3.9 to 6.7. So this is the consol company performance. And within the consol company, there are 2 to 3 group companies are there bearing the stand-alone. And before going to the standalone, as I will touch briefly about the other company's performance. Now all group companies together reported a turnover of INR 534 crores against INR 309 crores, an 88% jump in the group companies turnover also. And the PAT reported is INR 8.4 crores against a loss of INR 14.55 crores in the corresponding quarter of the previous year, in which there are 2 companies primarily reporting the turnover. One is the MDO coal mining project, a subsidiary company called as Pachhwara Coal Mining Private Limited, which reported a turnover of INR 468 crores in this quarter against INR 249 crores of the responding quarter in previous year. NCC Urban reported INR 66 crores against to INR 89 crores. There is a decline happened in the turnover for Urban in this quarter. OB Infra upward cities an annuity payment more or less similar for all the quarters, INR 14.31 crores, now against INR 13.75 crores. Similarly, the PAT from the -- on the PAT from the group companies, PCMPL reported INR 13.86 crores against INR 7.3 crores of the last year. NCC Urban reported INR 9.8 crores against INR 8 crores. Orai-Bhognipur reported INR 3.16 crores against INR 5.32 crores. This is about the groups, primarily these 3 companies, in terms of turnover and the profit. Now we coming back to our stand-alone. First one is third quarter performance. In third quarter, the revenue of stand-alone increased from INR 2,724 crores to INR 3,370 crores, an increase of 24%. And gross profit, an increase of 28% from INR 463 crores to INR 587 crores. So of course, in terms of margin, gross profit margin, there's a decline from 17.73% to 17.13% -- no, sorry. Gross profit also increase has happened from 17.13% to 17.73%. So the EBITDA increase happened from INR 293 crores to INR 349 crores, a growth of 19%. In terms of percentage, increased -- decline has happened in EBITDA from 10.93% to 10.53%. PAT increased from INR 91 crores to INR 150 crores, a 65% growth in the PAT. So in terms of percentage, it has increased from 3.34% to 4.45% and EPS from INR 1.49 crores to INR 2.41 crores. So this is about the performance and third quarter. Indeed, third quarter all the costs, already about to direct costs were actually in terms of gross profit margin, only the 2 elements which are interesting to note here is about interest cost. In this quarter, the interest cost reported INR 137 crores against to INR 167 crores for second quarter of the year. For this the reason is primarily the increase in the debt level. That is one. And the other one is the increase in the interest borrowing cost, it has a little impact borrowing cost. You know that the increase is happening in the borrowing cost for all the companies. But in terms of percentage, it has declined from 4.27% to 4.1% because of increase in the volume of the operations. In the administrative cost also this time, we have seen some steep increase in capital, it is because of the some donations given by the company. Now Employee cost in terms of percentage has slightly has come down in terms of percentage, of course, in terms of absolute always when the activity is going on that got and other things moving on. But as far as operating expenses have declined compared to the previous year. Now quarter-on-quarter, this immediate quarter comparison, the revenue increased from INR 3,037 crores to INR 3,370 crores from the second quarter to third quarter, what I'm explaining. The gross profit margins increased from INR 483 crores to INR 487 crores or 22% increase. Gross profit margin increased from 16.09% to 17.73%. And EBITDA increased from INR 289 crores to INR 349 crores, that were 21% growth from the immediate previous quarter. EBITDA in terms of percentage also, there is an increase from 9.61% to 10.53%, that increased from INR 122 crores of the previous quarter to INR 150 crores in the third quarter, about 23% increase. So in terms of percentage, increase happened from 4.01% to 4.45%. This is about the 3 months performance. And 9 months -- the third plus 9 months performance in a broader line. The revenue increased from INR 6,859 crores to INR 9,396 crores, about 37% growth. Similarly in the gross profit, the 28% increase has happened. In EBITDA, 26% increase has happened. And in the PAT EBITDA, 59% increase has happened. EPS rose to INR 6.3 crores from INR 4.05 crores. So that is a 9-month performance. And the important from the balance sheet items comes to the debt. So in this third quarter, the debt has come down from INR 1,985 crores to INR 1,946 crores, a decline of INR 39 crores. So you observed that in the last 2 quarters, there is steep increase has happened in the debt. For that one, there is a good reason. There is a big -- some things happened in the activities. Earlier, it is a INR 10,000 crores company in the previous year, but now a 30% growth is [indiscernible] and a 40% increase in the volume or activities increased in the first 2 quarters. As a result, the resources like working capital also increased but not in the proportionate level. So as a result, the debt level increased in the past 2 quarters. But in the third quarter, a decline started, decline happened about INR 39 crores. And going forward, we expect that the debt further declined in the fourth quarter by about INR 200 crores to INR 300 crores, it must add INR 1,600 to INR 1,700 crores by March end '23. In group companies also, there is no debt. Almost all the companies have become debt-free. So borrowing only INR 5 crores that is there in the NCC Urban Company. So the same level what we have in the stand-alone or the same level is in the group company to date. And coming to the CapEx. And in the first 2 quarters also you have seen, there is a significant increase in the CapEx. It indicates that how the activity is increasing in the company. On par with the increase in the activities, the CapEx also is increasing. In the third quarter also, the company spent INR 95 crores for the CapEx. Together for the 9-month period, the CapEx were INR 243 crores. So in Q4, the expected CapEx would be around INR 30 crores to INR 40 crores. It may not be the same level. So it may be around INR 30 crores to INR 40 crores. So the investment properties 1 item is the balance sheet has come down from INR 263 crores to INR 230 crores, about INR 33 crores decline in the 9 months. But in third quarter, a decline is about INR 16 cores. So come to the paid receivables. That also come down from INR 2,792 crores to INR 2,675 crores by INR 117 crores. Despite the increase in the volume, despite the increase in the revenues turnover, but the trade ratio still stands at almost a same level without any increase. This indicates how the collections of the company in this quarter as well as in the past 2 quarters. The debt collection period has come down from 97 to 91 days in 9 months. Investments, there is no change in investments in the 9 months period or the third quarter. But come to the loans, the loans there has come down from INR 401 crores to INR 391 crores in the 9 months period in some of these small companies have repaid the loans like NCC Urban and NCC International Oman. But the major part, we supposed to get is from the NCC Vizag Urban. That is, first we supposed to get the sale consideration and what we supposed to get the sales consideration in December quarter, we have not received that one, December quarter. That's they defer by another 1 or 2 months. So that we expect to receive in this quarter, whatever currency we supposed to be get by December 22. Come to the other income. And you might have seen, there is an increase happened in the other income. The increase primarily on account of the -- the sale of 1 land property happened in the third quarter. It represents about INR 18 crores. And also at the same time, sale of this class, the already developed properties are there within NCC. So that represents about INR 11 crores, together INR 29 crores is the cost of the other income. The interest income is about INR 17 crores and also dividend income of INR 6 crores and the residence income INR 5.4 crores, and all together about INR 57 crores what we repeated in the third quarter. So the major element is profit on sale ARPU, the land and as well as the other plants. Coming to the AP projects. The amount collected in Q3 from AP Capital City Project is about INR 60 crores. So amount to released in third quarter has come down is about INR 45 crores. The total current year assets come down of AP projects, now that some projects which are moving slowly, and some projects, particularly the Capital City Project, there is no movement. But all projects together in the current 9 months period, so I'm in the subsidiary to the AP projects. So in the AP projects some improvement happened in the collections in the 9 months period of the current year. As a result to the outstanding current FX including the pay receivables, working progress and other money has now come down. And in the 9 months period about INR 200 crores amount to we have released, as a result the amount has come down to INR 200 crores. So, there are two costs, one is running projects and other one is struck projects. The running projects about to 170 also productions were happened from that of the March in '22. And in the struck projects, the amount outstanding -- the net amount outstanding has come down from INR 107 crores to INR 64 crores, after adjusting the mobilization advance. So about other aspects like material cost, working capital, and other things, as and when you people ask the questions, we'll clarify. So with this, our remarks ended. And you can start about your questions and to answer the team of people are available here and they answer the appropriate things to the other questions.

Thank you very much. We will now begin with a question-and-answer session. [Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital.

My first question is on the improvement in the margins to happen in Q-o-Q. Do you think this can sustain over next -- for the next quarter and FY '24, given the decline in commodity prices? That's the first question. And second question is on the revenue guidance. I think you have given 30% growth outlook for FY '23? Do you maintain that?

So your question is about the margins and other one is about the revenue.

Revenue.

Revenue guidance. So the second one first I will answer about the revenues. So whatever we know we indicated in the previous calls also, 30% to our internal. That 30% is maintainable and it is achievable by this year end, 30% in growth. And as far as margins are concerned, there is a steady increase -- there is a decline happened in the first quarter and also in the fourth quarter of the last year. But now there is steady increase happened in the margins. It is along with the softening of the metal commodity prices happening in the market. So in the fourth quarter also, we expect another 10 to 20 basis points improvement in the margins.

The bigger question is that can you go back to our 11% margin -- 11%, 12% margin which you used to do earlier?

But the thing is the outside market, how the market moves. But certain commodities moving in one direction, certain commodities are moving in another direction. That is one. And number 2 is there is also a competition in the market. Now the company taken a stand that to report more volumes. So when you want more volumes and you want more growth, 20% to 30% growth, naturally, we have to compete. We have to get at the completive price with the tenders. As a result, certainly 0.5% to 1% margin sacrifice would be there at the time of tendering. So all these things are very important. But at PAT level, ultimately, gross number margin, if there is a decline, but PAT level, the company is starting to maintain 5% plus. That is the thing.

Okay. So one more question, how much you mined in Q3 in Pachhwara? And how do you expect it to ramp up over the next few quarters?

Yes. Pachhwara is doing well in both our policy to ramp up, and it reports more than what it reported in the third quarter. And going forward, also, it has good prospectives to report more and more turnover. Here, it is the Pachhwara Coal Mining, the rated capacity is 15 million tonnes a year. It is already now touching in this month. And in next year, it's supposed to produce 15 million tonnes. So once 15 million tonnes reached, thereafter that are now in a steady manner, except any earth quakes and some other things. So in the next year, the company reports the rated capacity, 15 million tonnes, it has geared up to produce on the core to certain extent, only the things only from the client side. If the client also provides everything then the company has no problem to produce 15 million tonnes of coal every year.

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

Sir, before asking the question, a humble request, if you can reduce the time for your opening remarks and allow more questions from the participants, it would be a great -- that's a simple humble request. My question is on in terms of the order inflow, you mentioned that we are in INR 3,000 crores. So if I add that, then INR 17,400 crores order inflow is there. So how much more we can look at in this quarter? And what about the next year, can the similar kind of INR 15,000 crores, INR 18,000 crores inflow is possible. So because of that, the related thing is that in terms of the revenue growth, definitely this year, we will be looking at 30%. So next year, a similar 15% kind of growth on the top line front is possible?

Yes. Now for the current year, as you said, 17,000-plus orders including the loan orders up there. And there are good possibilities to reach INR 20,000 crores also in this by March '23. As far as the rest year is concerned, as the company has its own plan strategic plans to increase the turnover year-on-year for which definitely the order book also increases, because the company has planned, and it is expanding and also entering into new verticals. So next year also the similar level or a little bit more than the similar level also is possible.

Okay. Okay. Second is a couple of data points I need, sir, on the balance sheet side. So what is the gross date inventory number, data's number, cash balance, payable, mobilization advance, unbilled revenue, returns on money and the group exposure?

So many numbers. Thank you for your suggestion. And some of the numbers we read out. And trade receivables already explained INR 2,675 crores. Unbilled revenue, INR 3,486 crores. Retention money, INR 1,900 crores. And the debt already we indicated INR 1,945 crores. What are the other numbers you want?

Cash balance, payable number, mobilization advance?

Okay. Cash balance, INR 131 crores. Margin money deposits, INR 540 crores.

Sorry, mobilization advance last quarter, it was INR 2,006 crores. So what's the number this time?

INR 2,081 crores.

INR 2,081 crores. Okay. Trade payables, sir?

INR 3,436 crores.

Okay. And the group exposure in terms of the loans and -- loans, you said INR 391 crores. So investment is how much -- or you can give the total exposure in terms of the investment?

So, whatever we now have, the same number, INR 895 crores, investments.

INR 895 crores. Okay. And the last one is in terms of the order book of the -- existing order book, INR 41,862 crores, how much is the subsidiary mining order that is the Pachhwara mining. So I just wanted a stand-alone order book number.

INR 2,000 crores.

Okay. Okay. That's it from my side and all the rest.

We have the next question from the line of Ash Shah from Elara Capital.

Am I audible? Yes.

Yes, you're audible.

First of all, congratulations for great set of numbers. So first of can you just give me the revenue breakup from different segments for this quarter?

Yes. You can consider these figures. Revenue for this 9 months period salary. The buildings INR 3,942 crores. Transportation INR 1,065 crores. And here, we reclassified the earlier segments or divisions, we made the buildings and the roads into buildings and transportation. As a result, all the works of these flyovers and metros, they are classified from the buildings into the transportation. To this extent, some difference would be there from that of the earlier numbers and the current 9 months numbers. And come to the water and railways, the revenue is INR 2,257 crores, electrical INR 787 crores, irrigation INR 248 crores, mining INR 1,243 crores, others INR 62 crores, international INR 7 crores. Totaling to INR 10,102 crores. This is the revenues for the 9 months period.

And one more question was on the Bangalore Metro side. So there were news reports that there was some mishaps that happened. So can you just provide some color on if there is any inquiry or if there's any stop it or court order on that front?

Yes. Good morning. This is Neerad. First of all, this is a very unfortunate incident. This includes loss of life. This is a very, very unfortunate incident. We understand that our client has already appointed a couple of experts to study, analyze and come out with the possible lapses. So as we speak, we are deeply engaged with the client and as and when we receive any more information on this subject, we would be happy to share with you.

So to continue, has the works allowed or has it been stopped right now?

Currently, I think nothing is going on, but they are taking a view they have -- they possibly want to change a couple of design points. So it will take some time, but we have no reason to believe that it won't move forward, but it will take some more time.

And how much will it contribute to our existing order book, if you could just provide a brief number or something?

See, the total order book for these 3 packages are INR 2,167 crores. There are 3 packages in Bangalore Metro.

The next question is from the line of Vasudev from Nuvama.

Just 2 data-related points. What is the execution that we did in 9 months, including the international orders? And if you can give the order book split segment, right?

No. Already we given...

Just now the figures have been given.

9 months revenue figures we have given. If you want beyond that anything, you please ask us.

So if you can give order book split based on different segments?

Okay. Segment-wise, and figure as of 31st March '22 for the INR 41,862 crores we will give this split upon. The buildings, INR 20,089 crores, transportation, INR 4,518 crores, water and railways, INR 8,814 crores, electrical INR 3,429 crores, irrigation, INR 1,773 crores, mining INR 3,003 crores, others INR 229 crores, international INR 7 crores, totaling to INR 41,862 crores.

Okay. And sir, what is the status of our Jal Jeevan Mission project?

What is the?

Jal Jeevan Mission project.

About 25% of the execution happened for the water projects we received and gradually increasing quarter-on-quarter the execution. In fourth quarter also, we expect about INR 800 crores or so. By this year end about 35% to 40% of the value of the orders would be completed.

The next question is from the line of Prem Khurana from Anand Rathi Shares.

Congratulations on very good numbers. So my question was with respect to the Vizag land sale. I think we were supposed to receive our payments, but we gave them an extension last quarter and seems as a we've given them extension one more time. So I mean, the agreement that we have with the buyer, does it have any end date in terms of -- I mean, beyond which you won't give them any extension? Because I think we were supposed to receive some money in September and there was some due in December, but September, we did not receive any money and December again. I mean, you said they have sought extension for another 2-odd months. And fair to assume the transaction does not carry any just because we've already received some payment, I mean INR 50 crore for Pachhwara was received.

Yes. Now in the initial first 5, 6 months certain, this is a -- since it is a big land pocket. And after they've taken out of that one and they carried out their due rate process. And whatever the shortfalls are there, those shortfalls also from our side have taken time to complete those things. As a result, some delays happening to take -- to carry out their real estate process for what they initiated. As the result, some delays happen for which, along with them, some part of that [indiscernible] fees also happened from our side. As a result, they requested us to depot on the payment. So we depot that payment. Now they supposed to come by December 31 that has not come. Now in this month, February month, they should to pay that amount. And by March quarter on other stage, we expect to date. And for this wherever delay is happening all that delay amount they agreed to pay the interest.

Okay. Even on the equity part or only on the loan?

Interest also. Interest -- first equity part as spend. Once equity part is clear, then they go to the loan part. The loan part linked with the project performance. So the moment they start sales, our of the sales amount 70% to 80% amount they put into the [indiscernible] account to clear our loans. There is a mechanism originally in the agreed terms.

Sure. And sir, on Andhra exposure possible to share -- and in terms of how much of the total exposure in terms of order backlog? And how would the split between, let's say, capital situation, the projects that are still not moving for us and the orders which are going good for us now and we are realizing payments on a regular basis. That will be all from my side. Thank you.

The book of the Andhra now stands at to INR 5,000 crores. Earlier about INR 18,000 crores also is there. That gradually has come down. And we are sticking to that level of earnings. And we are not taking only barring this funded projects, if any funded projects, particularly in center forming to funding is there. Selectively 1 or 2 projects we have taken. And the projects whatever earlier taken, which are under the exhaustion, including the AP projects. So barring this Capital City project products are going, but not at the speed which is supposed to go, but a little flowerbed supports are going. So at this moment, roughly about INR 570 crores.

And how much would be capital city, there's this INR 5,000-odd crores.

In the capital city now there are no -- virtually, there are no -- we have removed those Andhra capital city orders from the Andhra board. Earlier you know, that INR 18,000-odd crores are there. So understanding the scenarios on the new government, we have removed those capital city product orders. Only 1 order is there that is MLA MLC quarters that we earlier we completed 80%-85%. Now they asked us to complete. That order value is about some INR 50 crores to INR 100 crores should be there, that we are excluding and they are also releasing the payments.

Sure. Sir, just one last, if I may, please. I think there was this announcement by Chief Minister of the State Andhra, wherein they've decided on the capital city now. I mean why is that as the capital city. So how would that impact the pace of execution at the existing order backlog because now they'll be focused on Vizag. Right? I mean, if it is that we've decided that, but we will go with Vizag. So how would that change the execution for us on this INR 5,000-odd crore number?