Om Infra Limited (OMINFRAL.NS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the OM Infra Limited Q3 and 9M FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Paridhi from Go India Advisors.

Good morning, everybody, and welcome to Om Infra Limited's earnings call to discuss the Q3 and 9M FY '25 operational and financial performance, hosted by Go India Advisors. We have on the call Mr. Vikas Kothari, MD and CEO; and Mr. S.K. Jain, CFO. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risks that the company faces. We now request Mr. Vikas Kothari to take us through the company's business outlook and performance, subsequent to which we will open the floor for question and answers. Thank you, and over to you, sir.

Thank you, Paridhi. I welcome you all to the Q3, 9-month FY '25 conference call for Om Infra Limited to discuss the operational and financial performance of the company. Our results and investor presentation have already been uploaded on the stock exchange, and I hope everyone has had a chance to go through them. The company's financial performance during Q3 was affected by delays in the approval and funding of Jal Jeevan Mission projects. There were delays in release of funds by the center to the state of Rajasthan, UP and Punjab, which is where we got the maximum contribution of revenue from. And because of this delay in the release of funds by the center to all these 3 states, our financial performance was adversely impacted and the execution of JJM projects and the Punjab hydropower project in all these 3 states got affected. As a result, this affected our top line as the company was anticipating close to INR 150 crores revenue from JJM in this quarter itself, which obviously didn't happen because of the reasons not attributable to the company. However, with the recent extension of the project timelines and increased Jal Jeevan Mission mission budget allocation of INR 67,000 crores, we anticipate an acceleration in funding. This improvement should positively impact our financial performance in the coming quarters. We have a strong bid pipeline and would like to briefly discuss the same. The company has plans to bid for almost INR 1,000 crores worth of projects in JJM. Now that you may have read in the budget there was an extension of the Jal Jeevan Mission project itself until 2028, and an additional budgetary allocation of INR 67,000 crores was given, so we have a plan to add projects under JJM and also finish our existing projects because we will receive funding smoothly going forward. We also have plans to bid for river interlinking and irrigation projects in the states of Rajasthan, MP, UP and wherever these projects are being announced. The company is also planning to bid for almost about INR 2,000 crores in the ERCP project, which is Eastern Rajasthan Canal Project. The ERCP will use surplus Chambal River water to provide drinking and irrigation water to Southeastern Rajasthan water scarce districts. So we have a good bidding pipeline. Apart from this, we have also a good bidding pipeline in hydropower projects for hydromechanical equipments and in pump storage projects for -- hydromechanical equipments in pump storage projects also. So the bidding pipeline is very strong going forward also. Now let's move on to the operational and financial data. In terms of our operational updates for the 9 months of '25, our order book as on December '24 stands at INR 2,100 crores with strong presence across 18-plus states. The order book is diversified with Hydro and Water segments, 50% -- 50.4% to be precise in from Water segment and 49.6% from Jal Jeevan Mission. Notable progress has been achieved in our ongoing projects. The Shapurkandi Project, we have achieved revenue of INR 240 crores, which is roughly around 60% -- 50% of the total value of the project, and it is moving on smoothly. Amravati Irrigation Project in Maharashtra -- Shapurkandi Project is in Punjab. Amravati Irrigation Project in Maharashtra is worth about INR 119 crores. We received a new project from Chenab Valley Power Corporation in J&K, which is KWAR Project, which is worth about INR 410 crores. The Tapovan Project, which was of NTPC, which was damaged by cloud burst and has been restarted by the government -- by NTPC, our scope, which was already completed back then, we have received an additional funding -- additional work order from them for value of INR 48 crores. This is for hydromechanical equipments of Tapovan -- Vishnugad Tapovan Hydroelectric Power Project by NTPC. So we have a good execution pipeline going forward without any challenges on the funding side -- without hopefully no challenges in the funding side. Let me now update on the monetization of noncore assets. Update on monetization of noncore assets, the company expects to monetize its high-end RERA-compliant apartment project in Jaipur, which is called Pallacia and Om Green Meadows, Kota, assets within 2 years generating approximately INR 300 crores to INR 400 crores in revenue. The Bandra slum project is progressing, and we will -- we have built transit camps and shifting of slum dwellers in these will start soon. And with this, we are planning to launch the project with a reputed developer, hopefully, in '25-'26. Additionally, the company awaits the High Court dismissal of appeal filed by PWD against the arbitration awards in Bhilwara-Jaipur toll road, and then, the Supreme Court in Gurha Thermal Power Project, which could yield about INR 600 crores within the next couple of years. Coming to our financial performance. Our consolidated revenue for 9 months FY '25 stands at INR 541 crores with EBITDA of INR 36 crores and EBITDA margin of 6.7%. PAT for the quarter stands at INR 21 crores with a PAT margin of 3.9%. Our stand-alone level revenue for 9 months FY '25 stands at INR 483 crores with an EBITDA of INR 33 crores and EBITDA margin of 6.7%. PAT for the quarter stands at INR 13 crores with PAT margin of 2.7%. Our priority remains on operational excellence and profitability. We are strategically focusing on projects that align with our margin targets of 10% to 12%. We are confident of improved performance in the coming quarters. The recent budget boosted the infrastructure spending by INR 11,20,000 crores, which is 3.1% of the GDP. This will primarily benefit water, transport and urban development. As you're all aware, FY '25 has experienced delayed project budget allocation due to an extended state and central election, and also, particularly, in states like UP with the entire state's focus being on Kumbh and the funding also getting diverted. So these are all various factors that resulted in it. And this is not only Om Infra, this is across all the infrastructure companies. You will -- if you closely monitor the results of all the infra companies, specifically their water vertical, you will understand what I'm saying is absolutely common across all the EPC companies. The central and state governments have both witnessed a 15.4% and 10.5% year-on-year decline, respectively, by meeting just 37% and 28% of their annual budgeted target. This is also reflected in the utilization of last year's Jal Jeevan Mission budget of almost INR 60,000 crores, and the utilization was in the range of INR 20,000 crores, INR 25,000 crores. So you can imagine that it is not anything to do with the company's internal issues. It is absolutely reflected in what the industry's common issues are. The reports indicate a significant funding gap in water supply projects. While the tendered amount for the projects was approximately INR 737 crores, the government has currently allocated only INR 225 crores, leaving a substantial shortfall. Similarly, for irrigation projects, tenders worth INR 674 crores were required, but only 55% of this amount has been awarded. So our financial results are not unique. They're industry -- they're common to the entire industry's problems as we speak today. In the renewable sector, India targets a 500 gigawatt renewable energy by 2030, plans of INR 9.15 lakh crore investment in transmission. According to CEA, over 1,91,000 circuit kilometers of transmission lines will be added. The Union Budget allocated INR 26,550 crores to MNRE, which is roughly 53.48% increase from last year. Hydro projects worth INR 3 lakh crores are in the pipeline with INR 12,461 crore approved for 31,350-megawatt capacity. Hydro capacity is expected to rise from 42,000 gigawatts to 67,000 gigawatts by 2031-'32. Hydro projects, the union cabinet has approved INR 12,461 crores outlay to support the development of 31,350 megawatt hydropower projects to be implemented over the next 8 years. The scheme will be implemented from FY '24-'25 to FY '30 -- '31-'32. India has the potential to have about 1,33,000 -- 133 gigawatts production in hydro power segment. On the pump storage projects, India's ambitious plan to increase its pump storage power capacity from 4.7 gigawatts to staggering 55 gigawatts by 2032 and underscores the country's commitment to grid stability and clean energy, around 60 gigawatt of PSP projects are under survey, which includes 11 hydroelectric power project schemes with a combined capacity of 8,000 megawatts. And 44 pump storage projects with a total capacity of 60,000 megawatts under S&I for preparation of DPR -- survey and investigation for preparation of DPR. The National Electricity Plan broader vision of 74,000 megawatts of energy storage by 2031-32 leverages India's substantial hydropower potential -- hydropower PSP potential of 176 gigawatts. Under the Jal Shakti Ministry, the Ministry of Jal Shakti has been allocated INR 99,503 crores into FY '25-'26. The allocation of INR 67,000 crores of Jal Jeevan Mission extended till 2028 presents a significant opportunity. Om Infra's presence in UP, Rajasthan regions where -- MP, Maharashtra are regions where the mission's progress is lagging and positions them to receive consistent government funding as efforts accelerate to meet the extended deadlines. As a leading infrastructure company, we are playing a vital role in shaping the nation's development. The past year has been marked by significant opportunities fueled by government's renewed focus on hydro infrastructure. As I keep saying that the future is bright, these are just small blips of ups and downs, which our company is facing. And it's not only our company, it's across the Water segment -- across all companies in the EPC space in the Water segment. So this is all from my side. We will now open the floor for question and answers. Thank you very much.

[Operator Instructions] We take our first question from the line of [ Veeral Shah ].

Sir, a couple of clarifications as well. So one, you did mention that we had bagged the INR 400 crores of orders, right?

Yes. Yes.

Yes. So that is post 3Q, right? Because in the order book, we have only bagged INR 48 crores of order inflow for the quarter, right? So whatever the order which you mentioned is post 3Q, right?

We received that order -- 1 second, I think we made an announcement also that INR 410 crore order was from Chenab Valley Power Corporation. Jain-saab, when did we receive that order?

[indiscernible].

Sir, now, why I'm asking is because in the presentation, when you go ahead, right, your order book shows INR 2,138 crores, right? And order inflow for the quarter shows INR 48 crores. So that is the confusion. So that is where the clarification was between...

No, this is also mentioned, sir. KWAR is also mentioned in the order book for hydro is also mentioned, please see.

Because if you look at the presentation, Page 12, right?

Yes.

So the opening order book is -- 2Q is INR 2,138 crores, right? Order inflow in 3Q is INR 48 crores, executed during the quarter is minus INR 86 crores. So pending order book is INR 2,100 crores. Am I missing something or there is something which is...

No, it's correct.

No, sir, where is this INR 400 crores order. Was it included in 2Q only or whether it is bagged in 2Q?

Q2. It is mentioned as INR 347 crores without GST.

Got it. Done. Secondly, sir, there were hiccups. I understand that -- because of the state and central elections being there, your execution was hampered. So just wanted to check, are we in track of giving our guidance, which we had given of around INR 750 crores to INR 800 crores. So are we on track to achieve the guidance? Then, Q4 will be something which will be -- to look for.

Q4 looks positive because this -- funds inflow will start coming from central. Q4, we are positively looking at INR 250 crores. We will achieve -- we can achieve INR 750 crores to INR 850 crores for March '25.

Okay. Got it. Got it. And so the margin impact was mainly because of the quarter, right, the acquisition not coming in, right? Rest all is fine, right?

Yes. Yes.

And in terms of bid pipeline, what will your bid pipeline be when you look at in terms of bid pipeline?

INR 1,000 crores.

INR 1,000 crores, right?

Correct.

And when you look at the execution pipeline of Jal Jeevan, what is the executing pipeline which we are looking at, INR 1,000 crores of order book, which we have existing?

2.5 years.

And all the projects are moving on track, right, barring -- apart from -- now they are moving on track, right?

They were all moving on track, but somehow for various reasons, not attributable to the company, but primarily because of delay in the allocation of funds by the center to the states, the funding got dried out. And our philosophy is that if you have an outstanding of more than 2 months, then we slow down the execution of works at the project. So in between it so happened that -- and this is not only for us, this is for all the companies which are working under Water segment. So in between what happened was that the central government's funding to certain states, including UP, Rajasthan got a bit slowed down. In UP, in fact, very unique thing happened because of this Kumbh Mela, a lot of the government's attention and funding also got diverted to the Kumbh Mela. So it sort of created a bit of a slowdown in the payments from the government. So now that this is all over and this is all behind us and plus the budget allocating additional funding and extension to the Jal Jeevan Mission Project, therefore, we don't see any -- and we've already started seeing the funds coming from the center to the states. So now we don't see any issues going forward.

Agreed. Sir, but then your fourth quarter also the run rate, so basically, things will take time to come on track, right? Basically, that is what it will happen. So fourth quarter, it will be...

It will take time -- same time, but it will not happen suddenly. But yes, as long as we -- see, we were worried -- in fact, to be very honest, we were worried about the center not extending the Jal Jeevan Mission Project. And not only us, everybody was worried in the country where the center was rethinking about extending the Jal Jeevan Mission Project timelines. But once that news has come now, we have taken a sigh of relief, and now, execution also of the ongoing projects is also going to smoothen out and the new projects will also come. This was a news which was awaited by almost every infrastructure company in the country.

No, I agree. Got it. Sir, lastly, on the non-core fund, what is the sales for the quarter for the Jaipur? Are we able to sell something?

Please put your question again.

Sir, what was the sales run rate for the Jaipur for the quarter? Were we able to sell during -- any inventory within the quarter?

INR 33 crores revenue we booked in this quarter from Jaipur.

One is revenue, but -- so these are all ready to move in, right?

All ready to move in, yes.

We will take the next question from the line of Balasubramanian from Arihant Capital.

Sir, regarding this Jammu and Kashmir INR 410 crores infra projects, how much capital -- like working capital is required to execute the project? And how you are confident about 15% to 20% kind of margin? Because right now, we are in the range of 8% to 10% kind of margin over last few quarters and second half. This is my first question, sir.

So Jammu and Kashmir project, the value is INR 410 crores, including GST. It is to be executed over the next 3 to 4 years. It's a hydropower project, and it's hydromechanical equipments. Our margins here are in the range of 15% to 20%. And the execution of this project will take about 3 to 4 years with the first year not contributing a significant -- any significant number in the revenue because the first year goes into design engineering. The revenue starts -- contribution starts coming in from the second year onwards. So you will see FY '25-'26 -- FY '26-'27 to be major contribution from this project.

Got it, sir. Sir, my second question is regarding, you have mentioned, if I'm wrong -- if I'm -- the fourth quarter revenue is around INR 250 crores. Out of this, around INR 150 crores is expected from Jal Jeevan Mission. Is that all right, sir?

In the first quarter, you said, sorry?

For the next quarter, INR 250 crores kind of revenue. And out of this, INR 150 crores is from JJM. Is that all right?

Yes. That's what we are expecting, yes.

Okay, sir. Sir, when we can expect pickup from this JJM...

When we can expect what?

The pickup on execution side.

Pickup has already started happening. The funding -- you see, we had outstandings of more than 2 months. Now, those -- that outstanding is reduced by almost -- we had outstanding of 3 months, now it has reduced to 1 month to 1.5 months. So the funding has already started trickling in. And with the budget announcement being made, now the funds are going to be transferred to the states -- to the respective states. So hopefully, in the next 2, 3 months, things should be streamlined again.

We take the next question from the line of Garima Singh from CRISIL.

So I wanted to know about -- if you can give guidance on revenue, order book and this order inflow and margin for the upcoming full year and as well as for the upcoming quarter, which is Q4.

So the FY '25 results will be a bit subdued compared to FY '24 for well-known reasons. There is nothing wrong that has happened in the order book. Order book is still strong. And I -- for reasons I've already explained in the past in this call, there's going to be -- so we're expecting to do anywhere between INR 750 crores to INR 800 crores in FY '25. And of course, the spillover of this shortfall in revenue will come in FY '26, so FY '26, you'll have a significant jump in revenue.

Okay. And what about margins?

Margins are going to get -- going to be retained because it's -- from the current levels, it is only going to get better because we will have significant contribution from the monetization of the real estate assets also. So overall, the margin is going to improve from here, in FY '25 and full year also as well as in the following quarters also.

Okay. And sir, I have 1 more question. Where do you see the position of Om Infra in the industry overall?

What do you mean? I mean, in terms of revenue or in terms of positioning, in terms of qualification, bidding, et cetera, what?

Mostly revenue.

So I don't think I will be able to answer that off hand, but I think we are -- in terms of qualifications, in terms of references, I think we're one of the strongest companies in Water segment. We -- as you may be aware, we do everything related to water, be it from source to the tap connection and from generation of electricity. So we do everything to do with water. And in that, we have 1 unique position where we are the only company which has qualifications of doing complete EPC for hydromechanical as well as civil and electromechanical also, up to about 300 megawatts. So we have that unique position, and we continue to maintain it.

The next question is from the line of Satyam Badera from Profitmart Securities.

I have a couple of questions. Can you please elaborate why the coming years are better for Om Infra? And out of the segments in which we operate, in which segment do you see the -- in which segment do you see most government pushouts are coming in?

Going forward, the outlook is very bright because what our biggest fear was whether the government will extend the Jal Jeevan Mission Projects or not. That has gone away. And now budgets are also allocated and timelines are also extended. So that is the reason why both in terms of new order inflow also, we will have a bright -- we have a bright outlook. And both in terms of execution also, we have a bright outlook because once the project funding will be released -- disbursed by the center, then we will not have any issue in execution also. So that is why we think that the forthcoming years will be very strong. And what was your second question?

My second question is out of the segment in which we operate, in which segment do you see government push coming in?

So on that, I think in almost all the segments that we are present in, whether it is Jal Jeevan Mission, which you are already aware of, where there's hydropower project or pump storage project or river interlinking. In all of these projects -- in all of these segments, there is a huge focus by the central government on development of all of these kind of projects, so I would see while in hydropower and pump storage, the order book addition is lumpy, it's not steady order flow -- order book addition. But in 1 year, we may get INR 500 crores, INR 1,000 crores order itself. And then the next year, in the next quarter, we may not get anything. So it's a lumpy order book addition, but the pipeline is very strong. If you see our presentation and if you go through my opening remarks, you will find the kind of potential that our country has in all the segments that we are present in, even if we have to just capture a fraction of the total potential that's there in the industries that we are present in.

Okay. And I have one more question. Can you shed some light on what exactly Om Infra is doing in the Tapovan project?

We are doing the hydromechanical -- entire turnkey EPC contract for hydromechanical equipments, all the gates, hoists, all the steel structures, all the mechanical equipment is what we are doing. Now we had completed this project, and this project was almost at 90% completion when this disaster happened. And because of the disaster, the -- all the hydromechanical equipments got washed away. Now NTPC has taken a call after all the studies that they will revise the project and they will reconstruct it. And under the reconstruction itself, they have given us an additional order of INR 48 crores for hydromechanical equipments alone.

[Operator Instructions] The next question is from the line of Harshal Mehta from Smart Sync Services.

So sir, we are currently having this Kundah PSP Project, right? That is of 1,000 megawatts.

Yes.

And that is roughly around of INR 100 crores, if I'm not wrong.

INR 150 crores.

INR 150 crores. And as you said, that there is a huge tailwind government wants to set up around 50 gigawatts of PSP projects in our country, right?

Yes.

So can you share some outlines -- on going forward, how are we going to bid? Because as of now, we are very much dependent upon JJM projects.

So we see...

No, I disagree. We are not heavily dependent on JJM projects. We are -- right now, our order book is 50-50, almost 50-50; 50% from other projects, hydropower, irrigation, dams, et cetera and 50% from JJM. Going forward, my order mix may be skewed towards Amrit, JJM and hydropower projects also. But it's all going to be -- even if the order book is skewed towards JJM, the execution also takes place in a very lumpy manner where sometimes execution of hydropower project will be more and sometimes execution of JJM will be more. So this is almost impossible to predict which year I will have more revenue from which project and which segment. But the potential of high growth is there in almost all the segments that we are present. Now pump storage, for example, we have not added any order after the Kundah Project. But in the pipeline, there are a lot of projects, and we hope to get at least 1 or 2 projects from pump storage also within this forthcoming financial year. Hydropower also same thing is there. Hydropower potential is enormous -- bid pipeline is enormous. Even from central government PSUs also, there's a lot of projects which are upcoming in the pipeline. For some, tenders have already been floated. For some, tenders have also not been floated. But the work has started. So, hopefully, in the next few quarters, there will be -- these projects will be announced, and we will be able to bag more hydropower projects and pump storage projects.

Understood. Sir, so the main concern why I asked this question was to understand how are we able to manage the working capital cycle because as you said, majority of the companies who are working with JJM, they have faced this funding issues and payment delays from the government, of course, because of the reasons of elections and this Kumbh and everything. But going forward, how are we going to manage this working capital cycle considering that 50% of our order book is from JJM and we are also having high-growth other sector projects?

So 2 things have happened. One is in hydropower projects, we get -- in almost all of our projects, we get advances from the government by giving bank guarantees. So the advance from the -- taking the advance from the government helps us in a way in the cash flows of the project, number one. Number two, for advances, we need BGs. And we are fortunate that we have been able to get all the BGs that we needed. We had a -- we have now almost INR 700 crores of BGs in place. which will allow us to not only bid for more projects, but also allow us. INR 700 crores is including fund-based and non-fund-based limits. So we have a lot of fund-based limits also, which have been recently sanctioned by the banks to our company. And with these bank guarantees and the fund-based limits, which is LCs and working capital limits, we are well funded to take projects of almost INR 1,500 crores to INR 2,000 crores additional projects, and also execute the current projects.

I would like to add something here. Secondly, we have the real estate project in Kota and Pallacia, Jaipur. That also keep us giving inflows regularly. Last quarter, we got inflow of INR 33 crores from those projects. Those also keep coming in on metal, and we add up to the working capital requirement.

Exactly. And so I was coming on the real estate part only. So if you can share brief about how are we going forward in that segment?

Next 2 years, I think we will be able to completely recover the INR 300 crores to INR 400 crores out of these 2 projects. And right now, after the real estate boom in the entire country, Rajasthan has been picking up very well. And the demand for the high-end segment is also picking very well in Rajasthan. So our sale is right now on track. We are every month selling 1 or 2 flats. And the registry of INR 33 crore in last 1, 2 months, this was very handsome as compared to INR 56 crores for the entire year. So the things are going good in terms of real estate. And we are hopeful that by next year or by 2 years, we will be able to completely recover INR 400 crores.

The next question is from the line of [ Harsh Saraswat ] from [ Elegant Family Office ].

I just wanted clarification on the order book. You show Q2 closing order book at INR 2,138 crores. And post that, we bagged an order of INR 410 crores in Q3, right, on 22nd October. So why does the presentation only shows INR 48 crores of inflows?

I think the KWAR Hydropower order was already added in Q2 presentation if I'm not wrong.

But how can it be added before getting awarded? It's not possible, no? Can you go to Page #12 of the presentation?

Result was announced later on -- Q2 result was announced later on, on 7th of November, I think.

Yes. So I think going by the terminology, when you write Q2 FY '25 order book, that means the order book getting closed on 30th September, right?

But we gave the picture -- exact picture as on 7th November.

Can you please recheck this also?

Yes, I have rechecked.

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

So checking into -- just a continuation to our earlier speaker, sir, the order book position, which is mentioned today, is it as on date position or as on the end of the quarter?

This is as of date. It is as on date adding INR 48 crores additionally in that order book. The revenue of January has not been considered in this order book figure. INR 2,100 crore is net of December plus INR 48 crores added in Tapovan.

Sir, come again, sir.

INR 2,100 crores order book has not considered the January revenue. January revenue is separate out of this. Only INR 48 crores, which we got recently, has been added in this order book figure. Addition is there, but subtraction is not there.

Okay, sir. Maybe I'll take it offline. But going ahead, we would be requesting you sir, whenever you are mentioning your order book position, you mention it as on date rather than the Q2, Q3 or Q1 phenomenon. Therein, it creates a confusion in the investing community. And you are being there to answer repeatedly for the same question. So that suffices the answer. It will be a very good answer. Firstly, I would congratulate you on the presentation part. It is indeed a very, very detailed presentation. And Kothariji, you have been mentioning that the industry was of the opinion that the government may shelve the project, the Jal Jeevan. Sir, what made people believe that, that would be the course of action from the government? What did -- what actually happened wherein the industry started to believe this aspect, sir, if you could just throw some more light?

No. I think across India, the Jal Jeevan Mission Project was expected to have achieved a significant completion. And that sort of created a bit of a dissent by the PMO that why we have not been able to achieve such a significant progress in the Jal Jeevan Mission. So that dissent by the PMO sort of created a wave in the industry that maybe the PMO doesn't want to extend the Jal Jeevan Mission Project and doesn't want to give additional funding or doesn't want to continue this program. But then later on, with the persuasion, everyone, I think, the PMO understood that this is a project that has to be completed, and this is a project which has achieved significant progress and will also need additional funding for completing. So I think that's what changed his mind, and I think he then agreed on this. This whole process itself took a long time. I'm sharing with you very intricate details of what was happening in the industry. But this is kind of known to everyone in the industry, so -- but having said that, later, as they say, all is well that ends well. So the PMO agreed that, okay, we need to give more funding to this project, and we need to extend the timelines. So, therefore, it was announced in the budget. And that's how we ended up receiving relief.

So just to recalibrate what you mentioned. [Foreign Language] And then when the industry approached that [Foreign Language] then it will create a total ecosystem to collapse. Is that your understanding is? That is what you are trying to...

Yes. Thank you. Thank you very much for putting it out very nicely. [Foreign Language]

[Foreign Language] that is the part of the central and the state government. It is the buck stop -- where the buck stops? The buck stops on the agencies or the infra players? That is the...

Buck stops with everyone. Everyone has to be responsible for execution, but largely the responsibility lies on the hands of the state government, the respective state governments because [Foreign Language]. For example, let's say, Rajasthan state [Foreign Language] Rajasthan state [Foreign Language]. I'm giving you very high-level numbers, don't go exactly by my numbers, but [Foreign Language]. But these are just a few of them [Foreign Language].

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[Foreign Language] it will gather the momentum.

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[Operator Instructions] The next question is from the line of [ Jinesh Shah ], an individual investor.

My question first is on the noncore asset. As Jain-saab and Kothari sir is explaining about INR 300 crores, INR 400 crores realization from Pallacia and Kota. So this INR 300 crores, INR 400 crores will directly go into bottom line? Is this the right understanding?

No, sir. No. It is the amount of cash inflow.

So how much margin in terms of EBITDA or PAT we can expect from this INR 300 crores, INR 400 crores?

10% to 15%.

Okay. And as on today, how many units we have sold in the Pallacia project, total?

110.

And what is the sellable price as on today for Pallacia project per square feet?

For bigger flat, INR 12,000 to INR 13,000; smaller flat, INR 15,000.

Okay. Now the next question is about the Bandra project. As I understood from the announcement from the Valor Estate, they've already tied up with L&T on this with a ratio of 80% to 20%, where the developer will take away the revenue recognition of 80% and Valor will have 20%. So what will be the Om's share once this entire phenomena will start working and revenue recognition will be happening? So 20% [Foreign Language], the realization of Om in this project?

[Foreign Language], correct?

So that will be very, very low. I mean, as a part of a development agreement, what we have with Valor Estate was 20%, right? So why Om should accept this offer of [Foreign Language] 4% of the entire project.

Let me give you clarity, sir, [Foreign Language], so all these are rumours, I think.

First of all, these percentages that you are talking about [Foreign Language] nothing is confirmed as of now.

Okay. So, Kothariji, I mean, by when we can expect the developer to come on board? Because most of the rehabilization was supposed to be happened by end of December or January. And I think 90% to 95% work has been already completed. So when this project will kick off?

This project will kick -- is already going on. It is not going to kick off, it is already going on because [Foreign Language]. My sense is in the next 2, 3 months, Valor Estates [Foreign Language].

But the transition camp, which has been already developed, 6 to 7 towers, this is not adequate to shift the entire slum into this camp, right?

No, no, it is not completed, one, for habitation. And two, the change that has happened [Foreign Language] in order to shorten the timeline, but [Foreign Language].

And how many units we are constructing for transit camp, Kothariji?

Temporary transit camp is about 800 units.

So will these 800 units will be adequate to reshift entire slum families into this camp? Or -- okay.

Yes. Yes.

And what is the progress as on today?

As on today, it's almost 90%, 95% completed, the transit camp.

Okay. So can we expect by this February end or March end, 100% work will be over and the shifting of the families will be started?

Yes, we are expecting that in FY '26 -- FY '25-'26, the shifting will start and get completed.

Okay. So at least for the shareholders, the revenue recognition, whatever will happen from the Bandra project is not going to happen in next year, it will happen from next to next year onwards, right?

I will not comment on that because [Foreign Language]. So exit may happen earlier or may happen later. It all depends on what -- once the project is cleared of slum, then we approach all the developers or whoever we want to -- or whoever we find suitable to come on board and give us a deal at that stage.

Okay. What is the order bidding or order capturing guidance we are giving for next year, Vikasji?

I said that by the end of this financial year, we will add roughly around INR 500 crores to INR 1,000 crores in terms of new orders. [Foreign Language]. I'm expecting before March, [Foreign Language]. So my sense is anywhere between INR 500 crores to INR 1,000 crores within this financial year itself. And then, of course, another INR 1,000 crores of orders in the forthcoming financial year will be added.

Okay. And the last question is on the arbitration project. These like Jaipur ring road arbitration is going since last many, many years -- I mean, High Court [Foreign Language]. So how much more time we can expect now to get closure from today?

[Foreign Language].

So what is the timeline we are looking for, Jain-saab, for this case to get closed in High Court?

[Foreign Language] May, June [Foreign Language].

And then the government has right to move into the Supreme Court also, right?

Yes. Yes. Supreme Court [Foreign Language] maximum.

We take the next question from the line of [ Dheeraj Ram ] from [ Ashika Institutional Equities ].

Sir, if the fund outlay from the government is as expected, supposing in FY '26, what is the topline margins that we can expect?

Very safe side, sir, March '26, we will get [ INR 1,200 crores ], very safe side at 12% or 10% to 12% EBITDA. These are very safe.

Got it. And how is the execution side happening on pump storage projects?

Kundah is going on very nicely. It will be completed, I think, by December.

Okay, sir. Sir, and how do you see the funding of Jal Jeevan Mission in FY '26 and -- you already said that you have started picking up -- the funding has been picking up so far in last 1 month. And how do you see the next 6 months or 8 months in the funding inflow for Jal Jeevan Mission?

We are hopeful that we will achieve the entire UP and Rajasthan closure by March '26 or June '26, the entire project will be completed, both the projects, UP...

Ladies and gentlemen, due to time constraints, we take that as the last question. I would now like to hand the conference over to Mr. Vikas Kothari for closing comments. Over to you, sir.

So as I explained to all you gentlemen and ladies that we've had a bit of a short blip in our revenues and in our turnover. But this is, of course, very -- we are very confidently informing you this is across the industry and has nothing to do with the internal issues of the company. There are no -- this is not related to the -- to any reasons attributable to the company. It is all external issues. And the order book is secured. The revenue growth will definitely come from the existing order book itself in FY '25-'26 and '26-'27. And also, we are confident of adding a significant amount of new orders as well going forward as the pipeline of orders in all the segments that we are present in is very strong. So please have faith in the promoters and in the management of the company and in the execution capabilities of the company and be rest assured that we are doing the best for all of us. Thank you very much.

Thank you very much, members of the management. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.