PNC Infratech Limited (PNCINFRA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the PNC Infratech Limited Q2 FY '22 Earnings Conference Call hosted by Anand Rathi Share and Stock Brokers. [Operator Instructions] I now hand the conference over to Mr. Prem Khurana from Anand Rathi Share and Stock Brokers. Thank you, and over to you, sir.

Thank you, Mosef. Good afternoon, ladies and gentlemen. On behalf of Anand Rathi Share and Stock Brokers, I welcome you all to PNC Infratech's Q2 FY '21 (sic) ['22] H1 conference call. From the management, to share the perspective on current quarter as well as the way forward, we have with us Mr. Yogesh Kumar Jain, the Managing Director; Mr. B. Sawhney, the Chief Financial Officer; and Vice President, Finance, Mr. D. K. Maheshwari. To begin, we'll have opening remarks on the management, then we'll open the floor for interactive Q&A session. Over to you, sir.

Good afternoon, friends, and a very warm welcome to all of you present on the call to discuss our financial results for quarter 2 financial year '22. Today, along with me, I have Mr. T. R. Rao, Director Infra, Dr. Sawhney, CFO; and Mr. D. K. Maheshwari, the Finance and Strategic Growth Advisors, our Investor Relations Advisors. Before we start on behalf of PNC family, I would like to take this opportunity to wish everyone a very happy Diwali and prosperous New Year. First, I would like to share my thoughts on key sectoral development followed by financial and operational highlights of the company. Onward with transport minister, Nitin Gadkari, has set an [ MBCS ] target of 40 kilometers per day for financial year '22 based on the project pipeline at both [ Jawaharlal ] and [Wardha ] state. However, current pace of construction being around 21-odd kilometers per day, owing to prolonged and active monsoon coupled the second wave of COVID-19 during the first half of financial year '22. The pace of construction activities should substantially be picked up in second half of financial year '22 to meet such as challenging target for which active support and timely decision by authorities is essential. Another significant development is that the government is considering disbursement of compensation for land and building, et cetera, directly to the owners instead of routing it through district administrations. In the new pattern, the amount will be directly transferred to the rate interest fees ad hoc to public finance management systems, which will not only expedite the acquisition process but also will avoid idling hundreds of crores of funds in the banks, which can be utilized for development. To streamline India's infrastructure development in a coordinated and integrated manner, honorable Prime Minister launched PM that will succeed National Master Plan for seamless multi-model activities, connectivities on October 30. Industry believes that with this initiative, every department will now have real-time visibility of each other's activity, providing critical data while planning and executing projects in a comprehensively integrated manner. Honorable Prime Minister wants to entire purchase of infrastructure creation should be streamlined beginning from planning execution till commissioning, with seamless connection. Connection and coordination between all these stakeholders on a real-time basis. Industry expects the [ ever key ] policy initiative will greatly help in both rolling out and the execution of infrastructure projects in timely manner. Now coming to the key updates of the company. As mentioned in the previous earnings calls, the company will look for diligent diversification in project development business to maintain the growth momentum without assuming concentration risk. Rural drinking water sector supply would continue to be one of such sectors and more project opportunities are expected under the [ judgment, given the sun ]. However, given a strong pipeline of the project from both central and state authorities under Bharatmala Pariyojana and National Infrastructure pipeline, our focus on priority area would continue to be road sector. At present, our company had a total of 15 projects on PPP compromising (sic) [ comprising ] BOT toll, BOT Annuity, OMP and HAM assets. Out of 15 assets, we have 11 HAM projects with an aggregate bid project cost over INR 16,000 crores. In HAM portfolio, we have already achieved issuing for 4 projects and there are several others under construction. In terms of equity infusion, total requirement for all 11 HAM projects is INR 1,468 crores, out of which we have already invested INR 665 crores till September '21. And balance would be invested over next 2, 3 years. The internal across that will be generated over the next 2, 3 years should be sufficient to fund the equity investment. Now moving on to our order book. Our unexecuted order book on 30th September '21 was over INR 13,000 crore. That gives an assured return visibility for the company over the next 2, 3 -- next 2 years. Of the total order book growth, EPC content contributed 24%, HAM continues around 48%, and water and irrigation projects continued around 28%. Now I would present the stand-alone results for second quarter of financial year '22. Revenue of second quarter of financial year '22 is INR 1,615 crore, which is higher by 53% as compared to INR 1,053 crore in the second quarter of financial year '21. Now I move again to the stand-alone results for second quarter of FY '22. Revenue of second quarter of financial year '22 is INR 1,615 crores which is higher by 53% as compared to INR 1,053 crores in second quarter of financial year 2021. The EBITDA for second quarter is INR 232 crore, which is higher by 56% as compared to INR 142 crore in second quarter financial year '21. The EBITDA margin for second quarter of financial year '22 is 13.7%. The profit for second quarter of financial year '22 is INR 135 crore as compared to INR 69 crore in second quarter of financial year '21, a growth of 95% on a year-to-year basis. Moving on our PAT performance. Revenue of first half financial year '22 is INR 2,866 crore, which is higher by 46% as compared to INR 1,959 crore in first half of financial year '21. The EBITDA for H1 financial year '22 is INR 397 crore, which is higher by 52% as compared to INR 262 crore in H1 financial year '21. The EBITDA margin for first half of financial year '22 is 13.9%. The profit for first half of financial year '22 is INR 229 crore as compared to INR 129 crore in first half of financial year '21, a growth of 77% on year-to-year basis. I will now take you through consol financial for quarter ended 30th September '21. Consol revenue of quarter 2 financial year '22 is INR 1,798 crore as compared to INR 1,248 crores, in quarter 2, financial year '21 registering a growth of 44%. The consol EBITDA for second quarter of financial year '22 is INR 366 crore, which grew by 20% as compared to INR 304 crore for second quarter of the corresponding quarter last year. The EBITDA margin for second quarter of financial year '22 is 20.4%. The consol PAT for second quarter of financial year '22 is INR 132 crore as compared to INR 78 crore in quarter 2 financial year '21, a growth of 70%. Half yearly performance. Consol revenue of first half of financial year '22 is INR 3,260 crore as compared to INR 2,341 crore in first half financial year '21, registering a growth of 39%. This (sic) [EBITDA] grew by 23% as compared to INR 591 crore for corresponding period last year. The EBITDA margin for the first half of financial year '22 is 22.4%. The consol PAT first half of financial year '22 is INR 245 crore as compared to INR 173 crore in H1 financial year '21, a growth of 42%. On the stand-alone basis, balance sheet side. As on 30th September '21, our net working cycle is 103 days, which is similar as compared to 30th June '21. Our net work on a stand-alone basis is INR 3,124 crore as on 30th September '21, whereas total debt is INR 335 crore, and all of which is equipment finance debt. We do not have any working capital loan as on 30th September '21. The total cash and bank balance as on 30th September '21 is INR 501 crore. We have in net cash balance of INR 166 crores. This translates to net debt to equity of 0.11x. On a consol basis, our net worth is INR 3,291 crore, whereas total debt is INR 4,442 crores as on 30 September '21. The total cash and bank balance including current investment is INR 1,123 crore. This translates to net debt to equity of 1.35x. With this, we now open the floor for question-answer.

[Operator Instructions] We have our first question from the line of Mohit Kumar from DAM Capital.

And congratulations on a good set of numbers. Sir, first question is, we have been guiding for an order inflow guidance of 20 billion to 90 billion in FY '22, revenue guidance of 20%. Given our performance in the first half, do you think we can increase our revenue guidance? And secondly, on the order inflow, given the fact that we haven't had any major order inflow in the first half, how are you seeing the order inflow for FY '22?

See, the guidance as of now, still we maintain 22%, 23% over the last year. That comes to around 60 billion. Because see what has happened in the second and the third quarter beginning this year, monsoon is protracted, even there has been a very active monsoon in the many of our projects at during October also, so there was some progress subdued. However, we're able to give you the guidance in a better sense in the -- once this third quarter is completed. So as of now, we are maintaining the same guidance of 22%, 23% over the past year. With regard to order inflow, so we have given a guidance of INR 80 billion. So we still maintain that because still 4 months' time is there. So there are a lot of projects on the [ way ]. So we still maintain that it would be around INR 8,000 crores.

And sir, on the EBITDA margin, of course, we have done pretty well in the first half, do you see any downward risk to the margin given the very, very sharp price in international prices?

We are having an inflation close and price escalation. So majorly, there is no impact in the margins.

We are expecting it will be maintained from 13.5% to 13.75%.

And is there any portion which is fixed price contract in order book?

No. Our EPC contract has got a price variation class, even in case of the annual shareholder, their price indexation clauses are there. So we can, again, we are passing on to EPC. So the price variation is -- all contracts are covered under price variation.

We have our next question from the line of Parikshit Kandpal from HDFC Securities.

Congratulation on a good set of numbers. My first question is on the AGM project. So what was the revenue contribution of the union project in this quarter?

Union project?

Which one?

Just given the project confirmation, water projects in UP.

Water project. See, in UP, we have water projects in 2 phases. First -- Under first phase, there is a small project of INR 260 crores. There, we have completed around 10% of the work. Under the second phase, we have projects worth more than INR 3,000 crores. So the DPR preparation and the approval process is on. And we already commenced boring that is the drilling of their bored wells at around 25 locations. So going forward, we'll -- maybe in the next -- this quarter, we'll have some kind of a revenue from these water projects and which will be further increased during the fourth quarter of this year.

So how many sites have been given in terms of total DPRs which are there? So how much -- how many sites are worth -- in each of those have been given?

PNC, we have been 2,000 DPRs, 1,900 something, but we can say 2,000 DPRs. Out of 2,000 DPRs, 1,500 DPRs we already prepared, and we submitted to the client. And initially, that it's getting approved at a different level. Around 500 DPRs they approved at a top level. So for 233 DPRs, we already executed the tripartite agreements. So remaining DPRs approval as well as agreement signing is in progress.

In terms of value, how much will be these approvals which we have total? The 500 DPRs you said approval has...

Yes. This 223 DPRs roughly translates into INR 400 crore plus.

And this can be executed in how much time sir? 6 months? Or like -- so by March...

It has been 18 months for this, from the date of handling over the placement. So we expect this -- all these things, we should be able to execute within next 2 years.

I'm saying in this financial year, how much will be the revenue contribution from this INR 3,600 crores or DPR for this?

That is what we know but this would be certainly around INR 200 cores to INR 250 crores during the current financial year.

And the raw material prices have gone up and [ 60,000 ] project has gone for those items. So how are you protected here or in terms of escalation, so if you can just touch upon that?

A 3P pipeline, a 3P pipes are the major items, one of the key items of the team, which are covered under the escalation clause. The reasonings -- reason of the IOC, the country at Bombay at a base price, it is fixed in case of any increase in the regime pressures, these prices are covered under the escalation.

So we won't have any margin impact on these? So we'll have similar margins of about 13.5% to 14% in these projects as well, right?

We expect so. So only how do things will unfold, we need to see. But we still expect that kind of margin in water projects also.

Okay. Just one last thing, sir, on the monetization of the HAM portfolio and final inflows coming in from Aligarh, if you can just give some time line on the Aligarh project and when do you expect the monetization of HAM projects?

As we have the Aligarh project, we have already received the [ engine ] ownership from [ NHAI ]. However 2 NOCs still pending, one is COD and one is the descoping. Only 2 NOCs pending, which is under process. And we are expecting within 8, 10 days it will be finalized.

So in 8, 10 days, you'll get the money from them?

Given change in ownership.

They've already given the change in ownership in the name of [ Q I ] already. And we have already received the NOC from all the lenders.

So money will come in by November end, sir, for this project?

We hope.

Hopefully.

And how much is the amount? Has that been finalized now?

That has not been finalized so far because there are certain considerations when we are not -- when the amount to be received from [ NHAI ] on account of revenue shortfall, one is the lump sum amount to be paid by [ Q I ]. So at this point of time, it is not finalized, sir.

Okay. Just on the HAM asset monetization, sir, if you can update us on the government and what's the level of discussion we are with investors potentially in the system?

Two investors have given the final valuation in the -- at their level. And it is in the final state to finalize in our internal. And we are hopeful that by end of this month, we will finalize then they will start their duty there. And by end of the financial year, we are expecting that it should be found in one place.

And how much is the strictly value, which is under this -- the valuation has been -- accounts for -- what amount of it to the investments which we have done?

Over annuity, the amount infused on account of equity INR 675 crore, sir. All these projects.

At this price? Okay. For this project, where some valuation has already come into you.

Yes. Yes.

We have our next question from the line of Shravan Shah from Dolat Capital Markets.

First of all, congratulations for a good set of numbers, sir. Sir, just continuing that, so this INR 675 crore is for 6 HAM and 1 annuity?

Yes, 5 HAM and 1 annuity.

Okay. 5 HAM and -- okay. Previously, we were looking at 6, now this is a 5 HAM and 1 annuity?

Yes.

Okay. Second, the amount that we need to invest in equity in HAM. So in terms of the '22, '23 and '24 breakup, if you can help?

Actually, we require total equity in the 11 HAM project of INR 1,468 crores. And out of that, we have already infused till September INR 665 crores. Remaining is INR 800 crore. And then we require around INR 328 crore in March '22. INR 320 crore in FY '23. FY '24, INR 200 crore.

Okay. So this INR 328 crores is for the entire pool of FY '22, so whatever we invested should be minus from that?

Right. Right. Right.

Okay. And sir, in terms of the inflow, we said the INR 8,000 crores, so in that, how much more HAM are we looking at?

We are approximately targeting around 50% of HAM and 50% of EPC part mix.

Okay. So any irrigation, railway, airport, anything is there in that 50% risk?

There is a 10% worth of airport projects also included in the projects that we are pursuing. Around 10% for -- out of INR 8,000 crores, 10% is of airport projects. And as of now, education and any metro rail, we're not looking at.

Okay. Okay. And sir, our CapEx guidance for full year? last time, we said INR 100 crores, INR 125 crores, so we have all done a very less CapEx this time. So what's the number we are looking at for the full year?

For FY '22, we are expect around INR 400 crore CapEx, INR 100 crore to INR 120 crore.

Okay. Okay. And sir, I need a breakup of order book for individual projects, so one which are not there in the presentation. So I will be naming the project and if you can help me with the outstanding order book? So Nagina-Kashipur is how much, sir?

Nagina-Kashipur is INR 145 crore.

INR 145 crores. And Varanasi-Gorakhpur?

Varanasi-Gorakhpur, almost completed. And on 30th September, it was INR 25 crore outstanding.

Okay. And Bhojpur-Buxar?

Bhojpur-Buxar is INR 115 crore. 1-1-5.

1-1-5. Koliwar-Bhojpur?

INR 107 crores.

INR 107 crores. [ Ghaziabad-Aligarh ], I hope it must be zero by now.

No, almost completed.

Okay. Jhansi-Khajuraho Package I?

Outstanding under INR 103 crore, INR 1-0-3 crores.

INR 103 crores. And the second one? Khajuraho Package II?

Package 1 is almost completed, we have only received the PCOD. INR 10 crores something is outstanding.

Okay. Okay. Then the [ Challakere-Hariyur ]?

Again, INR 550 crore.

And Aligarh-Kanpur package 2? So that was around INR 30-odd crores last time, sir.

Phase 2 is completed. We have already received the PCOD.

Challakere-Hariyur?

Challakere -- it is INR 728 crore.

Purvanchal package 5?

INR 112 crore.

And the second package, same?

INR 142 crores.

INR 142 crores. Mumbai-Nagpur?

INR 208 crores.

INR 208 crores. So this will be -- Mumbai-Nagpur will be over by December now?

Yes. Yes. Yes.

Yes.

Okay. And Delhi [ Herradura ] Package 29?

29 is INR 673 crores. And 31 is INR 740 crores.

Yes. And the value of irrigation project, which was INR 1,000 crores last quarter?

It would be INR 975 crore.

And the other one, INR 276 crores value, what is the now?

Water.

Water only.

[ Meerut ] INR 255 crores is outstanding as against INR 275 crore. So we have attributed a work of INR 20 crores roughly.

Okay. Okay. Okay. Okay. Got it. I think -- so working capital days and date, so there it will -- anything will remain at the current level or any further improvement in working capital days?

Working capital days is 103 November '21 as early as 103 in June '21.

Yes. So by March, are we expecting some improvement or will it remain at the same level?

That should better actually because such a payment of around INR 300 crore of the September we have received in the month of October. So that is why slightly better days than the working capital days entry, to that extent.

Okay. So broadly, if I look at the data, which are at -- this was at [ Capital Market Day ], INR 1,261 crores trade receivables. So is it possible to broadly break it down that INR 1,261 crores data?

We shared it you.

We shared it.

We have the next question from the line of Vibhor Singhal from PhillipCapital.

And congrats on a great execution once again. So sir, at this point of time, there is no any one project in overall business, right?

Yes. No. They're all have started.

So sir, was there any order cancellation or descoping or reduction of some orders in this quarter? Because if I look our order book last quarter, including L1, and if I look at our order book this quarter, there is a gap of almost INR 700 crores, if I remove the execution also.

There will be a variation between the contact in end is 30 June and 30 September because of the inflation escalation, price variation we received in each projects.

Otherwise these are reduced -- there's a reduction.

Sir -- yes, sir, last quarter if I see your order book was INR 12,000 crores, and there was INR 3,400 crores of L1 orders. So total order book was around INR 15,500 crores. This quarter, our order book is almost INR 13,200 and our execution is around INR 1,615 crores.

See, last time in INR 15,000 crores, we calculated in a BPC, bit project cost, of these projects, HAM projects. Then these big projects are now translated into exactly EPC cost post the current appointed date, there will be some -- there will be around 10% of that reduction would be there because there's a difference between EPC and BPC. That accounts for it.

Okay. Okay. Is it? There is no descoping or change in reduction in scope of any of the projects?

No descoping.

Got it. Got it, sir. And sir, our order inflow in the first half of this year, we haven't received any large orders, right?

No.

No.

So sir, in terms of the bidding with NHAI, I mean, I know the -- I guess the competitive intensity is very high. But how do you see it going forward for the next half and let's say, next year? Do you think those -- we have seen a lot of small players getting into EPC and HAM also, which has already made competition very intense. But do you see this competition will come down and we will be able to get those INR 8,000 crores of orders in the second half with these coming down?

Yes. Because of this under our -- as per our policy, they heavily diluted the -- both qualification criteria as well as the totally distance with the good security. There is no bank guarantee with this type of thing, either HAM projects or an EPC and the net worth reduced from 30% to 5%, and there was a widespread existing reduction in the qualification. So the many waves have entered into. And we -- as per the government policy, for [ ASPR ] is for relief measures will last up to end of December. Over to that once you are securing as well as the qualification criteria, have original quantitation criteria to restore, there will be lesser competition and was lesser number of players. So we expect this kind of a competition won't be there, which is otherwise also unsustainable.

Right, sir. And sir, apart from NHAI, any other state government projects which is there in the pipeline? Nothing like -- sir, at least as far as we know?

We are evaluating the opportunities because maybe state governments are coming out with the express rates and on, but they've not bid out so far. So we are evaluating, we are keenly observing. But certainly from my water sector, UP government is come and go. So we'll look into it. That also has not taken any call as of now.

[Operator Instructions] We have the next question from the line of Jiten Rushi from Axis Capital.

Congratulations on good set of numbers. Sir, my question is on the toll collection. So what has been the toll collection, if you can give us project-wise for Q2?

Yes. The MP highway, INR 11.5 crore. And [ MD ] Kanpur highway, INR 105 crore. Kanpur Highway, INR 22 crore. And [ Maharajpur ] airport INR 3 crores. And revenues done for annuity INR 32.16 crores.

[ Maharashtra]?

[ Maharashtra ]...

Sorry, 11 point?

INR 11.47 crores.

Okay. Ghaziabad?

INR 53.7 crores.

And sir, on the order backlog, I just want to ask the 2 projects of water projects of INR 904 crore and [ INR 2,351 ] crore, is still -- it has not started. So the value remains the same, right?

Yes. Yes.

Yes. Yes.

Because, sir, if you've given the project order backlog breakup so the total comes at around 1-0 -- INR 10,600 crore. And if you add these projects which is still the same, then the order backlog total comes to INR 13,860 crore. So -- and you have mentioned more than INR 13,000 crores. So there's a gap of INR 700 crores to INR 800 crores. So that was the internal scoped or changing scope in some projects where the value has changed?

We will provide you the breakup of all the page. It is INR 1,317 crore.

Sir, please, if you can share it separately?

There's no descoping. As I mentioned, it's a gap between the BPC and EPC.

That's fine. But you've given the order back breakup after that -- anyway, sir, I will call you up. We can take it later. And sir, on the -- can you give us a breakup of mobilization advance outstanding and retention money?

Mobilization advance is INR 495 crores as on 30th September.

INR 495 crores, okay. And retention?

Retention is around INR 162 crore.

And sir, what has been the equity invested in CapEx in first half, sir?

First half INR 23 crores we have invested in the equity.

And CapEx in first half was, I think, very small, I think, sir, but any number?

In first half, it is INR 15 crores something.

INR 15 crores. Okay. And sir, on the bank limits -- what is the bank limits, funded and non-funded with the utilization level?

Funded is INR 1,000 crore and utilization is 0. Non-funded is INR 5,000 crore. That is mainly because of the BG. It is INR 2,600 crores outstanding.

Okay, INR 2,600 crores outstanding. And sir, on the current outstanding bid pipeline, so as you highlighted, you highlighted around INR 11,000 crores last time in Q1 call. So what is the current outstanding bid pipeline in terms of projects like EPC and HAM? And in which region we are -- we have bidded for? And now what -- going forward, how many project...

We have bidded for INR 9,200 crores.

Okay. And sir, what -- the breakup between EPC and HAM?

Actually, EPC is around 30%, and HAM is around 70%.

And what are your targets to bid? And new projects like the [ Purvanchal ] expressway because scale is not out. So are we planning to build [ Purvanchal ] expressway on the toll or we are just skip for it?

See, we are not taking final call. Now the bid date has again been extended. So we are evaluating. And otherwise, NIH, we identified a project worth of around INR 25,000 crores to be bid in the next 2 to 3 months.

We have the next question from the line of Ashish Shah from Centrum Broking.

Yes. Sir, first question is on the water projects, again. You said that about INR 400 crore worth of new projects are now available for execution. When do you think the residual amount of projects will become available for execution? And do you think with the upcoming elections in UP in early next year, there could be some sort of a derailment of this entire approval process?

No. See, Ashish, this project will continue because it's a very ambitious project and also it's a very prestigious further on both, state and central governments. In 2024, the general elections are there, so the main target is these to complete all these projects before the 2024 general elections. So there will not be any kind of interruption in the fund flows from that. This will continue. And by end of this financial year, we expect around INR 1,000 crores worth of projects will be cleared for execution. And also by the time we would have commenced at the execution also on the INR 1,000 crores. And going forward, maybe by middle of next calendar year, this entire set of projects will be approved for construction.

Okay. Sure. Also, sir, in terms of the irrigation project we have in AP. So we did say that we have executed a small portion of the project. Now how is the overall availability of funding for that project. Are we confident that as we go and execute this project, we will be paid on time? If any sense on that, it would be helpful.

We hope so. See now the project while the works are not going up because the -- from the Srisailam reservoir, they let the water into the canal system. So we had to suspend the works, which are there in the canal. Other ancillary works we are doing. And the state government is trying because it's a prestigious project. And during the last elections, they made a commitment to the people of [ Andhra Pradesh ], saying that these projects will be completed. So state government is trying to garner the funds. Otherwise, they said that they would provide the budgetary allocation to complete these projects before again to go them 2024 elections, as some leverage. So we don't see any major issue in the provision of funds, and we hope that payments will be released in time.

So sir, what would you think is the possible execution on this one? You said currently, the works are suspended. So let's say, in the second half, what is the kind of execution you may expect from this project?

Our mainland material and also agencies are there. So we'll resume the works in the month of January, which can go up to August. So in next 2 working seasons, we will try to complete the entire project. So the date of completion, the scheduled date is 2024 March. But before that, we'll complete. And during the 2022 working season and 2023 working season, we'll complete 100% project.

So basically, sir, you're saying August of 2023 is when you are expecting that -- that will be the end of the second working season, and you expect it will be done by that time?

Yes, project will be completed by that time.

Okay. Sir, lastly, on this -- the whole bidding intensity, et cetera. So can you just highlight what is the quantum of projects that we might have bid during this first half but -- and then probably lost it out to population where we might have stood out there, et cetera? So that will just give us some sense in kind of what is the kind of bidding that you have done and where you stood in it.

We have done some analysis, Ashish, we'll share with you the -- what kind of projects we bid and they were not the L1 or this thing in HAM or this thing. We have done an analysis, we'll share -- certainly share with you.

[Operator Instructions] We have the next question from the line of Parvez Akhtar Qazi from Edelweiss Securities.

And congratulations on a great set of number. So the first question is -- and out of our overall order book of about INR 13,300 crores, except the INR 3,200 crores of the [ AGM ] project, is there any other project on which execution hasn't started till now?

Sir, we started breaking out all our projects.

Sure. So basically, what I want to say is, I mean, let's say, in the second half, we'll do about INR 3,000 crores, INR 3,200 crores et cetera. So our existing order book will probably be somewhere around INR 10,000 crores by this year end. Now assuming even, let's say, INR 8,000-odd crores of orders over the next 4 months, for most of those projects probably execution will start only in Q4, assuming, let's say, land, et cetera, is every there. And probably may not contribute that much to revenues in FY '23. So out of this INR 10,000 crore of executable order book, let's say, in the first 9 months of FY '23, what is the kind of revenue that we can get? I'm sure, I mean, all of these will be underway, so execution will be pretty strong. But I mean any sense based on the time line, what is the kind of execution that we can see in FY '23 from this INR 10,000 crore order?

These INR 10,000 crores projects, which will be in a full swing during the FY '23 because all these projects by the time the completion more than 50% and the projects towards completion and all. So we expect the substantial amount -- percentage of this one in the FY '23 out of this INR 10,000 crores. And the projects that we are going to secure in the next 4 months in case of EPC, the turnaround time is very less. So once the appointed thing is done, we'll be able to completely -- we will be able to commence immediately. Only in case of HAM because we need to go for a financial closure, there's going to be some lag between the awards and the commencement. But EPC we can immediately start. So we -- that -- these projects also will certainly reach some kind of execution during the FY '23. So then we'll share with you the details. We already had a plan on how to go forward and what would be the thing. So we'll certainly share with you.

[Operator Instructions] We have the next question from the line of Bharani Vijayakumar from Spark Capital.

Yes. Am I audible?

Yes. Yes.

Yes, sir. So I just want to know the overall potential of this [ 31 ] mission projects in UP for the next 2 to 3 years?

In the first wave, they came out with a project of INR 10,000 crores, which are basically dry regions of UP, the Bundelkhand and also in the Sonbhadra region. The INR 10,000 crores worth of project that came in the past. And in the second phase, which now we are currently executing, it is around 34,000 villages. So again, it comes around INR 50,000 crores. Now they are coming out another 30,000 villages in the third phase and the remaining surplus water in the fourth phase. So if you see the UP, UP has got a 98,000 villages, and around, I can say, 60,000 Gram Sabha. So even if you take a more like INR 1 lakh crore potential of the water processing UP itself. So this will be funded by central government 50%, and the remaining will be the state government 50%.

Okay. So you mentioned Phase 4 would be around -- what -- sorry, INR 20,000 crores?

Overall, it would be around INR 1 lakh crores.

Overall, INR 1 lakh crores. Right.

Yes. Yes. And now we are halfway through -- till Phase 2, we are halfway through, so another INR 50,000 crores worth of projects are on their way.

Sure. So Any idea of what percentage of our order book will be comprised of these water projects say by FY '23 and '24?

Right now -- Yes, go ahead, sir.

Yes. As of now, it's around -- it is coming around 20% to 25%, and this percentage will maintain.

Okay. Okay. And this increase in receivables as on September, this would primarily be road projects? Or is it irrigation -- sorry, the -- okay, the water projects have not started.

Yes, that's not it. The contracts is primarily road projects. But majority that we received in the month of April. A substantial amount of that...

October, October.

In the month of October.

Okay. Okay. And finally, you had mentioned that you would send across a few details like first half bidding activity...

That I will share -- we'll share with you. We'll share with you.

So how do we get in touch with you for that?

Yes, you can take with Mr. [ Jiggarat ] or you may call to me.

[Operator Instructions] We have our next question from the line of Mr. Meet Parikh, Anand Rathi.

I just wanted to ask how much debt will the company be drawing when once -- for the HAM projects? While now they are under construction, so how much debt would they be drawing going ahead, means in the next year or so?

Next 2, 3 years?

Yes, sir.

Actually, total requirement -- total sanction is INR 6,400 crores, and as on date, it is INR 3,019 crore. So -- okay, repayment has also been started a project, which we have received the PCOD. So more or less, I think there should not be much more increased because 4 projects, repayment has been -- 1 project started and 3 projects, it will start from December. Since we are having a cash liquidity in the PNC company as a EPC contractor, so we are avoiding to take the Ghaziabad more or less at this point of time. It is also one of the regions to increase some -- to some extent [ at entities ].

Okay. And sir, one question. Regarding the tax, what will be the tax guidance for the year for FY '22?

FY '22, it will -- 26%, sir.

26%. So do we have any land credits left or it has been fully utilized, sir?

We have credit around INR 10 crore in the first quarter.

INR 10 crores in the -- in the second quarter?

In the first quarter.

We have the next question from the line of Shravan Shah from Dolat Capital Markets.

Sir, 2 questions. First, the asset monetization that you have said, also after that, this 5 HAM and 1 annuity, I'm assuming this would be a direct sell like selling to the queue or some other investors. But going forward, are we looking for an InVIT format?

Generally, we are also working on that also.

So it may possible that even this can be through the InVIT mode?

Yes, it can be.

Okay. Okay. And second, in terms of the early completion bonus. So last time we have talked about Purvanchal Package 5, 6 [ in Apul ]. So in the third and fourth quarter -- So in third quarter, is this any bonus to be booked or most likely it will be in the fourth quarter?

It would be in the fourth quarter. In the Purvanchal package 5, we received a provisional completion certificate 4 months ahead of the schedule. So this bonus would be expecting in the month of -- in the fourth quarter, this one because they have to have some internal processes.

Okay. Okay. So -- and Mumbai-Nagpur also, by December, it will be over there also in the fourth quarter, we can expect early completion bonus?

No, that may take some time because when you complete the things right now, then...

First quarter of next year.

Maybe now. First quarter of next year, we can expect it.

Okay. Okay. Okay. And on the stand-alone level, this INR 335-odd crore kind of a debt level likely to be maintained going forward?

It will go down. And we are expecting that by end of this financial year, it should be around INR 150 crore. We have recently, we have started to repay. It was that level also.

[Operator Instructions] I have the next question from the line of Jiten Rushi from Axis Capital.

One question on the -- we were supposed to receive a consumption bonus of INR 13 crores for the old project. Still we are awaiting for that. Any time line, sir?

We expect before end of this financial year.

Okay. End of financial year, this year?

Yes.

Earlier than Aligarh-Moradabad, sir? Yes.

Yes.

There are no further questions at this time. I now hand the conference over to the management for closing comments.

Thank you, everyone, for your participation in our earnings call. We have uploaded the presentation of our company's website. In case of further queries, you may get in touch with the strategic growth advisers, our investor relations advisers, or feel free to get in touch with us. Thank you.

Thank you. On behalf of Anand Rathi Share and Stock Brokers, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.