PNC Infratech Limited (PNCINFRA) Earnings Call Transcript & Summary

Good day, ladies and gentlemen, and a very warm welcome to the PNC Infratech Limited's post results conference call hosted by Prabhudas Lilladher Pvt. Ltd. [Operator Instructions] Please note that this conference is being recorded. I'll now hand the conference over to Mr. [ Viral Shah ] from Prabhudas Lilladher. Thank you, and over to you, [ Viral ].

Thank you. Good evening, everyone. I welcome all the participants to the 3Q and 9 months FY '20 results conference call of PNC Infratech Limited. We have with us Mr. Yogesh Kumar Jain, Managing Director; and Mr. D. K. Maheshwari, Vice President Finance of the company. We will commence the call with the opening remarks from Mr. Yogesh Kumar Jain to give an overview of the company's performance. This will be followed by a Q&A. Now I will request Mr. Yogesh Kumar Jain to begin his opening remarks. Over to you, sir.

Yes. Thank you, Viral. Good evening, friends. A very warm welcome to all of you to participate in our earnings conference call to discuss on our financial and operational performance for the quarter and 9 months ended December 31, 2019. Along with me, I have Mr. T. R. Rao, Director Infra; and Mr. D. K. Maheshwari, Vice -- VP Finance; and Strategic Growth Advisors, our Investor Relations Advisers. I will start with brief highlights on the industry, including union budget and then will share company performance. The government continues to focus on infrastructure development in the country. On 31st December 2019, the honorable Finance Minister has unveiled an [ MBCS ] based on infrastructure pipeline of INR 1,03,00,000 crore under the pipeline. Over 6,000 major infrastructure projects are proposed to be implemented across the sector by finance year '25 to help the nation to become $5 trillion economy. Development of roads and highways is one of the key constitutes of the national infrastructure pipeline with INR [indiscernible] net estimated value of projects identified in this sector for implementation by financial year 2025. The government had announced in the budget that there will be accelerated development of highways over medium term, which will include 2,500 kilometer access control highways, 9,000 kilometers of economic corridors, 2,000 kilometers of coastal and land port roads and 2,000 kilometer of strategic highways. To fund the development of growth and highways, the government has allocated INR 1,47,000 crore in the budget for financial year '21, including INR 39,455 crore to MoRTH and INR 107,500 crore to NHAI, including internal and extra budgetary resources. The government has also mandated NHAI to monetize 12 bundles of operational projects by financial year '24 on TOT basis, which has helped them in raising funds in 2 earlier operations as well. The introduction of these funding operations -- funding options is expected to help creating additional liquidity to fund the development of 60,000 kilometers of national highways over the next 5 years. The major steps proposed in budget include to facilitate the funds availability per sector, including 100% tax exemption for sovereign wealth funds investing in infrastructure sector and providing equity support amounting to INR 22,000 crore to infrastructure finance companies such as IIFCL and the subsidiary of NIAH, which will enable them to lend more than INR 100 crore to the sector. During the current financial year, project awarding activity by NHAI has been subdued with only 3,200 kilometers of the project awarded till November 2019, amidst a target of 12,000 kilometer for the full year. The major reason for slowing awarding activity is to ensure minimum 80% to 90% availability of vacant land before award of projects for implementation, which is expected to resolve the execution challenges and mitigate additional liabilities. However, as the position of land acquisition has improved across many proposed projects, the awarding activity is picking up now, and around 60 to 70 new projects are expected to be awarded by NHAI on both EPC and HAM formats before the end of current financial year. Now I will uprise officers of the company. Our robust execution capabilities driven by 4 strong pillars of our strength that enable us to successfully deliver the project within the budgeted cost and estimated time frame. The pillars of the competency, including our financial strength, end-to-end execution capability, large fleet of modern plant and equipment and multidisciplinary execution teams with proven credentials. Our judiciously leveraged and healthy balance sheet and strong credit rating enable us to execute projects seamlessly without any liquidity challenges and financial stringency. Our financial strength help us in pitching for higher number of projects of larger sites continually. Recently, our consortium of lenders had been principally agreed to enhance both our fund-based and nonfund-based limits substantially, which would further catalyze the business growth. Our credit rating continues to be CARE AA- for long-term bank facilities and CARE A1+ for short-term bank facilities. This strong credit rating facilitate us to raise funds at competitive rates. Another significant competency of our company has been having end-to-end construction capabilities in-house, right from mining till commissioning of projects. These distinct in-house abilities give our company great control over execution, quality, time and cost of our project even in challenging situation and times. Over the years, we have been investing in modern plants and machinery and built a large equipment bank of our own, which augments our execution capability productivity. During the 9 months ended December 31, 2019, we have invested INR 71 crore on the new machinery. Post this CapEx, our gross block as on 31st December stood at INR 1,087 crore, which will be sufficient for execution of project of value over INR 7,000 crores in a year. We have a strong execution and support team with proven expertise. Over the past 6 years, we have doubled our employee strength to more than 7,500 employees, with the net addition of 87 employees during the 9 months ended December 31, 2019. Now moving on to our project development business. The project development business compiles 14 projects with a mix of BOT toll, BOT Annuity, OMT and HAM projects. Out of this, 7 projects are operational. In case of one of the operational projects, Ghaziabad-Aligarh BOT toll project, we have entered into a share purchase agreement with the Cube Highways for sale of our 35% stake along with the other partners in the project. We have already received the approval from all the lenders, and approval from NHAI is expected to be received by the end of current financial year. All the 7 fund-based projects are HAM projects and 6 are already in construction phase, and the remaining project Challakere-Hariyur had already achieved financial closure and is awaiting appointed date from NHAI. We expect to receive the appointed date by end of this financial year. As of 31st December 2019, we have already invested INR 427 crore in the 6 under construction HAM projects, and we'll be investing INR 421 crore over the next 2 years. The company internal accrual should be sufficient for funding the future equity requirements of the 7 HAM projects. Now moving to our order book, our unexecuted order book as on 31st December 2019 is INR 8,696 crore. Out of this, the EPC and HAM projects constitute 59% and 41%, respectively. This order book does not include 2 projects, Challakere-Hariyur amounting to INR 935 crore and Lucknow Ring Road EPC project of INR 1,062 crore for which the company has already received the letter of award and appointed date is expected to be delivered shortly. The current order book gives a distinct execution visibility for next 2 years. Now I will present the vision for the quarter and 9 months ended December 31, 2019. Standalone quarterly results. The revenue of third quarter of financial year '20 is INR 1,218 crore, which is higher by 68% compared to third quarter of financial year '19. EBITDA for third quarter of financial year '20 grew by 68% to INR 171 crore from INR 102 crore in third quarter of financial year '19. EBITDA margin for quarter 3 financial year '20 has been 14.1%. Profit of third quarter of financial year '20 is INR 77 crore, which is higher by 63% compared to third quarter of financial year '19. Revenue of 9 months of financial year '20 is INR 3,720 crore, which is higher by 84% compared to 9 months of financial year '19. EBITDA for 9 months of financial year '20 is INR 608 crore, which grew by 99% compared to 9 months of financial year '19. EBITDA margin for 9 months of financial year '20 is 16.3%, which is higher by 120 basis points compared to 9 months of financial year '19. PAT for 9 months of financial year '20 is INR is 384 crore, which is higher by 108% compared to 9 months of financial year '19. Consol revenue of third quarter of financial year '20 is INR 1,390 crore, which is higher by 61% compared to third quarter of financial year '19. Consol EBITDA for third quarter of financial year '20 is higher by 49% at INR 297 crore as compared to INR 199 crore in third quarter of financial year '19. Consol net profit for third quarter of financial year '20 is INR 67 crore, which is higher by 491% compared to third quarter of financial year '19. Consol revenue for 9 months of financial year '20 is INR 4,256 crore, which is higher by 70% compared to 9 months of financial year '19. Consol EBITDA for 9 months of financial year '20 is INR 1,032 crore, which is higher by 50% as compared to 9 months of financial year '19. Consol net profit of financial year '20 is INR 459 crore, which is higher by 152% as compared to INR 182 crore for 9 months of financial year '19. Our net worth on standalone basis is INR 2,483 crore as on December 31, 2019. Total standalone debt is INR 345 crore, which is availed for equipment finance otherwise working capital loans for work is there. The total cash and bank balance is INR 435 crore. We have a net cash surplus of INR 90 crore. On consolidated basis, our net worth is INR 2,474 crore, whereas total debt is INR 3,301 crore as on 31st December 2019. The total cash and bank balance, including current investment, is INR 968 crore, which translates to net debt to equity of 1.3x. With this, we now open the floor for questions, answers.

[Operator Instructions] The first question is from the line of Mayank Goel from SBICAP Securities.

I had a couple of questions. So first question on order inflows. We have been guiding that new orders of roughly INR 6,000 crore to INR 7,000 crore will be taken by us. But till 9 months, we have bagged just one big order of INR 1,000 crore. So what is that you aim now to get in this last quarter? And some color if you can give on the bidding pipeline.

Yes. We had already submitted 8 EPC bids and 6 HAM bids. These bids are submitted during October and January around -- you can say around INR 15,000 crore of estimated value. So that -- we are expecting some projects out of these submitted bids. And also then we have identified around 40 projects, which are -- we are going to bid before end of this financial year. So we expect the order book of around another...

Around INR 7,000 crores.

INR 5,000 crore to INR 6,000 crore before end of this financial year. So the total order inflow during the year would be between INR 6,000 crore to INR 7,000 crores.

Okay. So you still maintain on the order inflow guidance?

Yes. Still maintain, we are hopeful about that.

Okay. Sir, next question is, in budget dividend distribution tax was removed. So this definitely benefits companies like us with subsidiaries or SPVs. So what is your take on it? And any taxability, which will be now in the hands of parent on this dividend?

Presently, we are not giving dividend to the parent...

Parent company.

Parent company...

From the subsidiaries.

From the SPV and the subsidiaries.

Okay. But going forward, you can definitely look at this as well, right?

Yes, yes.

What is the effecting structure.

Okay. Sir, next question is, this quarter, there was a sharp rise in both employee cost and interest cost and not just Y-o-Y, but Q-o-Q also employee costs rose by 46% while interest increased by 63%. So if you can help with reasons for that.

Actually, the reason for employee expenses, the employee expenses of third quarter of the financial year has been higher as during this quarter, the company undertakes appraisal and annual increments for all the employees, and the arrears from January 2019 has been paid and accounted in this quarter. This is on average around 10% increments on an average because we have given the arrears of 11 months from January '19 to November '19, therefore, entire impact comes in this quarter for employee evaluation.

Increment effective January.

Yes.

And what about, sir, interest cost?

Interest expenses, you will see that there is no much. Interest on CP is hardly INR [ 1,00,000 ] in this quarter. Interest on term loan, this we have taken the equipment -- for purchasing the equipment around INR 8 crore, but major increase in interest on the mobilization advance.

Due to mobilization advance.

Because in this quarter, we have taken the mobilization advance for HAM project and Bombay-Nagpur project. So mobilization for Mumbai-Nagpur project is at interest rate of 12%, which we have taken due to certain strategic reasons. However, the mobilization advance has been partly repaid also till date, partly. So next quarter, this impact will not come. But in this quarter, we have taken a INR 300 crore mobilization advance for Nagpur-Bombay entire 15%, its cost is around 12.2% or 12.3%. Similarly, we have taken advance for Purvanchal Express where rate is 8.3% and some of the HAM projects we have taken the advances. But next quarter, this financial cost will not post, which we have in the third quarter.

Okay. Okay, got it, sir. Sir, lastly, if you can help with the toll numbers for the quarter.

Toll number is MP Highway is INR 12.1 crore; Kanpur-Ayodhya is INR 98 crore; Kanpur Highway is INR 17.8 crore; Bareilly-Almora INR 9.8 crore; and Raebareli-Jaunpur is MOT INR 32.16 crore and Narela is INR 10.5 crore.

And, sir, what about Ghaziabad Aligarh?

It is INR 54.25 crore.

Okay. Sir, we were expecting the NHAI approval by December '19 for Ghaziabad Aligarh. So what is the status? And when can we expect the proceeds to come in?

It is in the final stage at the NHAI level, and we are expecting it may be in this month, we can get the approval. Or otherwise, next month, by end of the financial year, certainly we will get.

Okay. So -- but proceeds will come in the next FY?

Maybe in this financial year. Maybe in this financial year subject to -- we receive the LOT in February.

Mayank, you keep sending the industry updates here on both infra daily and news app. So we appreciate that.

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

Congratulations for another great set of quarters, sir. Sir, just wanted to know in terms of the first -- in terms of the guidance, are we -- for FY '20 and '21, what is the now revenue guidance? Are we maintaining that 50%, 60%? So now it would be a 60% plus kind of for FY '20? Or is there any change in FY '20 and '21, last time we guided 25% to 30% growth?

In the financial year '20, we are expecting 60% growth should be there in FY '20 and FY '21 should be around 18%, 20% growth should be there.

'21.

In '21.

18% to 20%, you are saying?

20%, you said. 20%.

Okay. And inflow, as you maintain the INR 6,000 crore, INR 7,000 crore for full -- so INR 5,000 crore to INR 6,000 crore more inflow in these 2 months. So it would be both EPC and HAM 50-50? And how do we see next year, FY '21, in terms of the inflow?

The inflow, the current year, before March, we will see total inflow would be around INR 6,000 crore to INR 7,000 crore, so including INR 1,000 crore we already got. And inflow -- we expect a inflow of INR 7,000 crore to INR 8,000 crore in next year. Yes, up to -- even it can go up to INR 9,000 crore.

Okay. And in this February and March, it would be half of HAM and equity? And what about the next year also? So I'm just trying to understand how much more comfort we have in terms of taking the HAM projects?

We are expecting

50-50.

50-50 around.

Okay. Even the next year also?

Yes, yes.

Next year also.

Okay. Sir, in terms of the appointed date, as you said last time, whatever the date we expected both the Lucknow Ring Road and Hariyur HAM project. Why particularly Hariyur, though the 80% land is available, why the appointed date is now getting extended to March? Last time, we expected by January.

The 80% of -- around land has already with NHAI. At some stretches of the proposed bypass and other locations, local villagers are seeking higher compensation for their land and hesitating. NHAI wants to declare the appointed date only after budgeting land free from all encroachment and encumbrances, so that vacate land is available for uninterrupted working. After formation of new government and intervention by Sri Gadkari ji, honorable minister, situation has improved and by March 2020, which is expected appointed date would be declared. I think we had already applied for the extension of time, declaration of appointed date by March 2020.

Okay. Okay. And for Lucknow Ring Road, it would be also March?

No, no. Lucknow Ring Road within 2, 3 days.

Okay. Lucknow Ring Road within 2, 3 days.

2, 3 days, yes. Because...

Sir, I need some numbers in terms of the outstanding order book for the projects, which are not in the presentation. The top 5, 6 projects that we already mentioned in the presentation, I want the remaining one. Maybe you can isolate -- name the individual project or you can say Varanasi-Gorakhpur, Bhojpur-Buxar, Koliwar-Bhojpur and all 3, 4 HAM projects.

Yes. The Bhojpur-Buxar is INR 338 crore; Koliwar-Bhojpur, INR 288 crore.

INR 288 crore?

Yes. Varanasi-Gorakhpur, INR 230 crore; Lakhimpur-Kheri, INR 155 crore; then Etah-Kasganj, INR 27 crore; Nanau-Dadon, INR 23 crore.

Okay. Chitradurga-Davanagere?

Chitradurga INR 543 crore. These all are the balance what to be executed.

Yes, yes, sir. I'm asking that. And Jhansi-Khajuraho Package I and II?

Jhansi-Khajuraho Package I is INR 519 crore.

INR 519 crore. Okay.

And Package II is INR 456 crore.

INR 456 crore, okay. And sir, just on the HAM, is the -- last time, what we said is in terms of the -- as per the presentation, the total equity required in 7 HAM was INR 832 crore. And now it seems the number has increased to -- I think INR 15 crore, INR 16 crore, the number has increased. So that is on the Hariyur, the last HAM project?

Yes. It is a total commitment of all the 7 projects, INR 848 crore. And out of that, till December, we have infused INR 427 crore, so remaining is INR 421 crore.

Okay. So in this quarter, how much more we are expecting? And FY '21, how much?

In this quarter, we are expecting INR 46 crore and FY '21 INR 250 crore and remaining is FY '22.

Okay. Okay. And lastly, sir, on the tax rate. Last time, we said we are expecting 30% of tax rate for the full year. So in 9 months, the tax rate actually is on the lower side, 23.7%. So maybe on the fourth quarter, we can have a 52% kind of a tax rate. Is it -- my understanding is right?

On an average, in '19-'20, it will be around 25%, 26%.

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

Sir, congratulations on good set of numbers. Sir, NH24 in Narela, have you received the entire proceeds? Have you realized the entire cash?

Yes, yes.

Yes, yes.

So total INR 350 crore -- roundabout INR 350 crore would have -- INR 300 crores would have come, right, both put together?

Yes. INR 145 crore NH24 and remaining in Narela, yes.

Okay. Okay. And sir, was there any execution-related issues? I mean did we lose any revenues because of the Maharashtra issue, that project -- did we lose any revenue this quarter? I mean you guys slowed down -- did we go slow down on that project, because of that, we had any impact on revenues?

No, no.

Maharashtra.

We don't foresee any problem in that project, we just...

No. I was saying third quarter, the third quarter specifically. I'm not asking after that?

That would entirely [indiscernible]. We have executed INR 175 crore in third quarter in Nagpur-Mumbai.

It was normal operation. I mean there was no -- you did not slow down the project because of that political thing?

Oh, no, no. Not at all.

Not at all.

Okay. Just on the monetization bit. Sir, now we have 7 projects under construction on the HAM side. So what is the update on monetization? Have we started talking? I mean we have already started talking to investors. So what is the status of that? I mean as progressing now, have we finalized some investors? Are we talking in advanced stages?

Actually, we are talking with 2, 3 investors. But at this time, we cannot comment on the valuation or the time line at this point of time also.

Okay. Okay. Sure, sir. And just on the consolidated financials, there has been -- the profits are lower than the standalone. So which particular SPVs would have contributed to the loss at the PAT level, PBT level?

Mainly that is because of accounting index. And there is loss -- slightly loss in the Bareilly-Almora project or BOT project.

Are we still...

That is also mainly because of the interaccounting.

Okay. Are we still adding on the profits and -- from losses from the Ghaziabad project in the accounts?

Yes, yes.

Next question is from the line of [ Avinash Chinau ] from [ Spark Capital ].

Quickly, first is on -- what is the pending claim with NHAI in terms of value? And how much of it was awarded? And how much of it was paid already?

No pending claims.

No pending claims.

Arbitration is going on.

See, in case of NH24, we have received INR 145 crores. And other -- few other cases -- projects, arbitration is underway. So the claims are there. We'll share it separately.

Okay. Okay. And second question, sir, is on, what is the reason for this reinvention of NHAI bid on that Meerut, Yamuna, Haryana after...

With Meerut-Shamli what happened, the NHAI had received 5 bids. Out of 5 bids, 3 bids were rejected being nonresponsive. What we understand, one of the bidders is protesting the rejection of his bid and exploring the legal options may be to avoid further delay, so they canceled the present bidding process and reinvited the bids, what we understand. Actually, we don't know the reasons because these reasons are best known to NHAI. But this is what seems to be apparent reasons.

The next question is from the line of Mohit Kumar from IDFC Securities.

Sir, I have only one question. Sir, regarding the BOT, I believe there is a -- the NHAI has floated a draft concession agreement. What are the change or key changes from the earlier agreement, if you can highlight? And what is the -- do you want to invest? Will you participate in the BOT projects? I believe there are a couple of BOT projects, which are under tender right now.

Yes. BOT toll is not our priority area. Our preference would continue to be EPC as well as HAM in the ratio of 50-50.

Okay. Understood. And how does the bidding pipeline looks at this point of time for the NHAI? And do you have -- is there -- are there any other state projects which are in pipeline for the next 4 to 5 months?

There is no major projects on -- at a state level...

On BOT? BOT or other?

No, total.

Overall, overall.

Pipeline total.

Yes. There's no major project on a state level. But NHAI pipeline -- so NHAI floated bids for around

Highway projects.

Yes, yes. 40 HAM projects and 50 EPC projects with an aggregate estimated cost of over INR 90,000 crores. So we expect bidding will be completed -- process of bidding will be completed before end of this current financial year. And majority of these projects would be awarded before end of the current financial year.

And sir, these are on top of INR 15,000 crore bids which are submitted already? Or is this including the INR 15,000 crore?

Yes, yes, top of INR 15,000 crore.

We have already submitted.

The next question is from the line of Vibhor Singhal from PhillipCapital.

Congrats on a great set of numbers yet again. Sir, just a small little bit clarification on the numbers. The year-to-date order inflow for us has been INR 1,000 crore?

INR 6,000 crore to INR 7,000 crore in this year, FY '20.

Yes.

Sir, till now we have received INR 1,000 crore in this year, right?

Yes, yes. INR 1,000 crore, right.

INR 1,053 crore.

INR 1,065 crore. Perfect. Exactly, exactly. And sir, what is the gross and the net debt at the end of this quarter?

Net debt we are expecting -- this quarter, already this quarter -- in December '19?

Yes, December '19?

There is a cash surplus of INR 90 crore net debt, cash surplus.

Cash surplus. And sir, gross debt will be around INR 325 crore?

INR 345 crore term loan for equipment finance.

So sir, just wanted to understand, we have already received this arbitration for both NH24 and Narela, so that would be approximately INR 300 crore. So -- and we have also utilized the mobilization advance for the HAM project and Mumbai-Nagpur as well as Purvanchal. So has the entire arbitration money also gone into working capital funding despite using the mobilization advance?

Mobilization advance is going into working this...

Mobilization advance, which we have taken, it is coming in the working capital.

Right, sir. So sir, basically [Foreign Language] where has that been used because...

[Foreign Language] so INR 145 crore [Foreign Language] which we have given the unsecured around INR 80 crore.

Okay. So in the parent company only INR 80 crore has come, the remaining has gone to the SPVs of Narela and the...

Right.

Fair enough, fair enough, sir. Also sir, lastly, if I could just ask, NHAI, as you said [ Foreign Language ] but I think [Foreign Language] so will we continue on that? [Foreign Language]

No. We will bid for metro also.

Okay. And only in the Delhi or let's say, other countries let's say...

Focus area will be Delhi, but we'll also see the Northern part of country if good projects are coming up, because metros are contemplated even in Kanpur, Agra and everywhere. So as these opportunities come, so we'll look into it.

[Foreign Language] that was won by [ FCOM ]. Did we participate in that or not as yet?

Oh, we didn't participate in that.

The next question is from the line of Priyankar Biswas from Nomura.

Sir, congratulations for great numbers. So my question is on the employee costs again. So you mentioned that there are some arrears that for the last 11 months that were paid. So can you quantify like what would be the amount for that, so that we can derive more underlying employee expense?

It is around 10%.

It is around -- on an average, increment was 10%. So arrears has come to INR 22 crore, INR 24 crore.

INR 22 crore, INR 24 crore. That is the increment.

Because we have given the arrears of -- from January 2019 to November, so 11 months we have paid.

Yes.

And one more question, again, on the employees. So what I see is that your head count would have probably reduced in this quarter. Like the first half, your employee count was like from the -- 1H FY '20 level, it seems that the employee head count is down by almost 200. So any reason for that, given that we are ramping up so much on execution, so what is the reason for this?

That is for lower-class employees because after completion of the project. For extent, Dausa-Lalsot almost completed and 2 more projects has completed, so they have gone out.

Okay. Okay. And just last question, just what is the remaining value for Dausa-Lalsot now or is it fully completed?

So only around 10% is recovered.

98.5% is completed.

Okay, 2% left.

Yes. Entire work will be completed in the month of February.

The next question is from the line of [ Dhrishant Chakrabarti ] from [ DC & DC Advisors ].

First of all, congratulations on the good set of numbers. My question is with respect to something that you stated in your annual report, which is the threat of competition. So a very general question with respect to that I would like to ask is to what are we doing for that? Like one thing that was mentioned by you was that you would be seeking orders, which would be higher in ticket size like INR 2,000 crore or INR 3,000 crore. So do you maintain that guidance or if you could cite some other things, which would help us, say, stay ahead of our competitors, like H.G. Infra and Ashoka Buildcon and all other parties?

Yes. Our preference would be higher-value projects, particularly in case of HAM because we have a good financial credentials. So we'd be able to achieve the financial closure easily and compare it to -- with our competitors. So that area where we want to mitigate the competition and threat. Otherwise, in EPC, we continue to focus on EPC and HAM on a 50-50 ratio. So definitely, there our preferences would be the larger size projects.

Okay. My next question is with respect to the working capital days and the debtor days. So initially, I guess last quarter, you had guided that that was supposed to increase going forward. But this year also it's pretty low. So is it going to continue at the same rate, say, 56 days or around that 60-, 70-day mark or is it going to increase as we have seen earlier?

It should be -- working capital presently is 56 days and March '20, we are expecting it should be in the range of 50, 52 days only.

Okay. So we are not going to go to that 90- or 100-days level?

We will marginally...

Yes. Marginally high.

Marginally higher. All right. My next question is with respect to the CapEx guidance that had been issued last quarter. You had guided around INR 155 crore to INR 160 crore for FY '20. And as of now, you've invested only INR 71 crore. So do you maintain that guidance of an additional INR 90 crore being invested in FY '20 or like are we going to have something different, like a lower amount?

In total, FY '20 should be in the range INR 125 crore to INR 150 crore only.

INR 125 crore to INR 150 crore. All right.

And then around INR 50 crore -- INR 40 crore, INR 50 crore would be in this quarter.

Yes.

INR 40 crore, INR 50 crore for Q4. All right. Last question from my side with respect to the cash part of the profit. I see a significant decline in quarter 3 specifically with respect to cash profit percentage. Can you just tell me why that has come about? And what is the reason that it was higher earlier in the past 2 quarters?

Last year -- last quarter, there were amount of NH24 INR 145 crore.

The next question is from the line of Jiten Rushi from Bank of Baroda Capital Markets Limited.

Congratulations on a good set of numbers. Sir, few questions. Sir, Aligarh-Moradabad bonus, when are we expected to receive, sir?

We are expecting in this quarter, up to March.

So this is INR 14 crore, right, sir?

Right.

Yes, yes.

So that would be purely -- any gains, any tax -- we'll pay tax on it, right, sir?

Yes, yes, yes.

, Normal tax, yes. And sir, on the CapEx guidance, obviously, you've given for FY '20, so can you throw some light on the CapEx for FY '21 and the closing debt you are targeting this year, March '20?

CapEx in next year should be -- it will depend on the...

Order inflow. Order inflow.

Order inflow. Even then, in case if what we have given our guidance INR 5,000 crore in this year, INR 6,000 crore next year, certainly, CapEx should increase INR 100 crore, INR 150 crore.

And sir, targeted debt this year would be same, higher or actually in this range, INR 350 crore?

Gross debt should be INR 390 crore at the end of this quarter.

Okay. And sir, can you throw some light on the bank limits because you said in the opening remarks that you've got the enhancement in the nonfund limit? Can you just highlight it?