PSP Projects Limited (PSPPROJECT.BO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 FY '21 Earnings Conference Call of PSP Projects Limited hosted by Asian Markets Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Amber Singhania from Asian Markets Securities Private Limited. Thank you, and over to you, sir.

Thank you, Faizaan. Good afternoon, everyone. On behalf of Asian Markets Securities, we welcome you all Q FY '21 earnings conference call of PSP Projects Limited. We have with us today Mr. P. S. Patel, Chairman and Managing Director of the company; Ms. Hetal Patel, CFO, along with their team, supporting them. Now I would like to hand it over to Mr. Patel for their open remarks, and then we can proceed to the Q&A session. Over to you, sir.

Good evening, Amber bhai. Good evening ladies and gentlemen. This is P. S. Patel, Chairman, Managing Director and CEO of PSP Projects Limited, along with Ms. Hetal Patel, CFO. Welcomes you all to this earnings conference call, which is focusing on our company's performance in quarter 3 FY 2021. Hope you all are fine and safe at your places. Before we move to the financial strategy of last quarter by Ms. Hetal Patel, I would like to throw some light on few of the updates and developments of this quarter. As I conveyed during the last call on quarter 2 results that the challenges like lockdown, worker migration and all the first quarter, quarter 2 of unlock had been significantly improved from the industry and the remobilization of the workers has reached to 95% by August end, which was almost 50% till July, which was further improved in this quarter, and I feel all our projects have started progressing without any hurdle of pandemic which can be seen from the results, too. Only 2 projects, EWS housing project at Bhiwandi and Swaminarayan Sabha Hall project in Ahmedabad hasn't commenced yet because of issues related to clearance and approvals, which I believe should be through by February end. With this, company has booked the revenue of operations -- revenue from operations of INR 390.16 crores in quarter 3, which is just a marginal 8% less if we compared year-on-year basis. But personally I feel, it's a good immediate recovery post lockdown. Company has net orders of INR 112.08 crores in quarter 3, which comes up to the total orders in FY '20 to INR 220.98 crores till date. I know this number is quite less compared to our previous couple of years. Actually, there are 2 reasons for the same. Our major client portfolio billings to private sector and due to this pandemic, private players have delayed or still reviewing the market sentiments including any new effects. And another reason is we are expecting 2 major orders -- we were expecting 2 major orders by December end worth INR 700 crores which, unfortunately, will not be converted. Anyways, it accounts in the business. These numbers are not the immediate concern for the company as we still stand with an order book of close INR 2,521 crores, which can cater for another 6 to 7 quarters at least from now. So to be very frank, so not going on aggressive and try to be cautious on selection of project too. Also, we still have a very strong live, fit book of about INR 5,000 crores plus and few selected inquiries of INR 1,500 crores yet to come on capital as these projects are yet at the conceptual design -- concept design page. So hopefully, we'll be -- we'll see good numbers by this quarter end. We have successfully completed 6 projects in quarter 3 and in total, 10 projects in FY '21, which is total projects completed by PSP Projects has reached 253. Regarding SDB update, SDB is progressing very fast. And as expected, we will be commissioning the project somewhere in the month of April. And probably, there will be a part of some position for the fit-outs for the tenants somewhere in the month of April. So -- but say, the overall strategy, how to -- we will deliver the whole project as a whole or it has to be delivered in power to power is yet to be decided with the client. Regarding precast factory update, in terms of factory update it is progressing very fast. We have already completed the foundation, we have started erection of column successfully, is already ready. So by end of February end, I think we should be through by structure steel and by the end of March, my roofing should be completed, and we are expecting machinery to reach in the first week of March. So probably as planned we will be through with production somewhere in the month of May -- April or May. But till then, we have already initiated some of the orders for precast, which is related to bullet trains with L&P and some projects -- some of the things we have converted from our own projects. As for Reliance, we are doing some precast gutters. It is of a very long length of 6 kilometers. So that's how we have moved -- we are going through in precast factory. So these were the key highlights from my side. For detailed financial disclosures, I will request our CFO, Ms. Hetal Patel, to take it forward. Thank you, everyone, to be a part of this call. Sorry, one more last update regarding U.S.A. subsidiary, after the election of U.S.A. the things have moved little bit faster. And probably, we are expecting permissions to come somewhere in the month end of March or first week of April. That's all from my side, take care and stay safe, I'll put you through Ms. Hetal Patel.

Thank you, sir. Good afternoon, everyone, and welcome on the call. Let me first give you highlights on stand-alone financial results for the quarter ended on December 31, 2020. During the quarter, company's operations recovered further from the economic slowdown caused by the COVID-19 pandemic. Company has booked revenues from operations of INR 390.16 crores for quarter 3. It is lower by 8% compared to similar quarter of previous year. The revenue generated from Surat project was INR 135 crores during this quarter. Total revenue booked for Surat project for the 9 months of current year is INR 246 crores. And cumulative revenue till December 31 '20 is INR 1,203 crores for the Surat project. Company has booked EBITDA of INR 46.93 crores, which is 12.03% of the revenue from operations. This has reduced by 13% compared to quarter 3 of the previous year. Other expenses of INR 4.67 crores includes provision made for unspent CSR expense of INR 2 crore for 9 months of current financial year. This provision has been made to comply with the recent notification on CSR expenses. Exceptional item of INR 2.74 crores represents loss on impairment of investment in one of the subsidiaries, PSP Projects & Proactive Constructions Private Limited. The company was holding 74% stake in the state subsidiary and as there are no further projects to be executed with the JV partner, the balance 26% stake was acquired from the JV partner by the company during the quarter. A loss on impairment of investment in subsidiary has been worked out considering the fair value of shares acquired. Net profit, including the comprehensive income was recorded at INR 27.89 crores for the quarter, which is 7.08% of the revenue from operations. The net profit reduced by 24% compared to quarter 3 of the previous year. If we look at the working capital days, debtor days are 52. Creditor days are 53 and inventory days are 21 for the quarter. As on December 31, 2020, the company has total fixed deposit of INR 195 crore, out of which pre-deposits of INR 46 crore INR, equities worth INR 142 crores are under lien with banks for credit facilities. And as is given to clients as security deposit amounts to INR 7 crores. Work on hand as on December 31, 2020, is INR 2,521 crores, which comprises of INR 372 crores for Surat Diamond Bourse project and INR 2,149 crores for other projects. With this, I end up giving key highlights of the company's financial performance, and now we are open for question/answer session. So request the moderator to take it forward. Thank you.

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

Yes. Sir, firstly, on the order inflow and the bid pipeline. Just to -- let me get the number exactly. Order input till date you said is INR 220.98 crore?

Yes.

Okay. So sir, now how much more are we expecting in this quarter? And in terms of the bid pipeline also, if you can explain, including the Central Vista previously, we were expecting that before March the awarding can happen. So that and what are other projects that we have already are looking and can come before March?

Okay. Shravan, first of all, I would give you the brief detail about the bid pipeline, which we have already bidded, and we are expecting something to come out of that. So there is one residential project in Ahmedabad from a large developing company, which is about INR 500 crores. Residential township in Gujarat that is from an MNC, which is about INR 2,000 crores. Medical college and hospitals in UP, there are 7 hospitals for which we have bidded -- 6 hospitals and 1 actual university for which we have bidded. Overall, there are 12 tenders in UP for medical college, which is HTC ground. There is 1 mall in Ahmedabad, which is about INR 200 crores, which we have already applied for 3Q. There is a stadium project in Baroda, which is about INR 200 crores. Corporate house for pharma company is about INR 100 crores. And the IT company, Hyderabad, INR 850 crore, which we have been telling since long, which is still on and still it is not concluded. So this is how the total bid pipeline is there. About Central Vista, as I already said, that because of the conditions of the contract, like ongoing projects, we are not considering, but still only the 2 tenders have came up. Let us hope something to come after March. So probably by that we would be able to get some certificate from Surat Diamond Bourse, at least to the extent of virtual completion or something like that. So then onwards, there won't be any problem in terms of prequalification as far as PSP is concerned. But till that project is completed, either there are some conditions which change at the Central Vista CPWD tenders or we complete -- we get some certificate SDB so that we can bid for the structure project. This is from my side.

Okay. Sir, just to get the number correct, UP 12 tender hospital, the amount broadly would be?

INR 1,400 crores.

Sorry, INR 1,500 crores?

Medical college, you are saying?

Yes, UP you said, 12 tender for different hospitals.

Yes, yes, yes it is the -- the tenders which we have bidded is INR 1,400 crores.

INR 1,400 crores. And mall in Ahmedabad is how much and stadium in Baroda?

INR 200 crores. The mall in Ahmedabad is INR 200 crores, stadium project in Baroda is INR 200 crores. And corporate house pharma company our corporate house for pharma company is INR 100 crores.

Okay. So total would be around close to INR 5,000-odd crores, INR 4,000 crores, INR 5,000 crores that we are looking at. And so net-net, our expectation would be -- we should be able to get at least INR 1,500 crores kind of odd value in the next...

Yes. That's what we target for. If we are trying to reach to the INR 1,300 crores, nearby INR 1,300 crores revenue this year. And actually, we should have an order book inflow of minimum INR 1,500 crore, which I have been telling people the whole year. So I'm still expecting we should reach to that level at quarter end.

Okay. And sir, to add to that revenue, when we are expecting in terms of the INR 1,300 crore, that is kind of a flattish -- or sorry, last year was INR 1,500 crore, so INR 1,300 crore that we are saying. Okay. Okay. And yes, sir, in SDB, last time, we said that in October, run rate was INR 60-odd crores and we can expect that INR 55 crores, INR 60-odd crores per month. But this quarter, the revenue is only INR 135 crore. So some slowdown has happened because now the only the high-value work should be there. So it should be increasing, how come it has declined? So we were looking at a number close to INR 170 crores, INR 180 odd crores this quarter and only INR 135 crores came.

Yes. But what was happened that due to some of the reasons MEP work because of this very much hike in steel prices, some of the materials have been delayed like dust and all that. But now they may get streamlined. So some of the work -- so that's why the commissioning of overall project for price of steel is -- of MEP may get delayed by 1 month. So that's the reason that we are not able to compete MEP by March, which I was expecting. So it will close somewhere in the month of April. So that's the only reason otherwise. And secondly is the finishing part because of the finishing part the things are not being -- getting turnout in a efficient way what we expect because clearing with the steel we are seeing some shortfall because -- otherwise, some glazing and all things are going on well. MEP, except this material delivery, everything is going fine. And in terms of compound wall and general infrastructure, almost the work are on track. So only worry is about the external caring and the glazing.

Okay. And on the margin front, there will not be any issues, the same kind of a 12%, 13% margin we should be able to maintained? And lastly on the CapEx, how much have you done? And what is the idea? How much have we spent on the precast and how much left to be spent in this year and the total, including that, how much CapEx for this full year and the next year?

We have already stated in the -- on the first day when we thought of going for precast, we have already reached -- targeted for an investment of INR 75 crore to INR 80 crore. I think till now till now INR 35 crore. Till now we have spent INR 35 crore and by probably end of May or mid of April or end of May, we'll be spending this amount. So within this next 4 or 5 months, we'll be utilizing INR 40 crore to INR 50 crores.

And apart from that, other CapEx?

As such, presently, as I said, that we are not in requirement of any surplus CapEx except installing this precast plant because we have lot of machineries getting free from Surat project and some of the projects completed recently. So as such, I think at least 1 year we will require any general machineries or the infrastructure required the infrastructure.

Okay. Sir, I have a couple of questions. I will come in queue. All the best.

Thank you.

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

P. S. sir, congratulations on decent set of numbers. Sir, when I see a bid pipeline, so largely it remains private lien for that 12 hospitals in UP where you're targeting about INR 1,400 crores of bid you are doing. So I understand that this SDB project, we are not having the certificate right now. But for other projects in government, are we not looking at in and around in Gujarat or closer to Gujarat and other government projects and they are missing there in the order book? Or is it that the government ordering has really -- because we are not seeing any major orders coming in the building segment in these 9 months for other players as well. Is there overall general slowdown in government ordering or that we are not bidding for those orders?

No. If you see the last tenders where we could stood almost second lowest and third lowest to RevPAR. And then we could not tend to lowest in this Baroda revenue entity. There is an aggressive bidding from large bidders like L&T, Shapoorji and everybody. So it's not like that that there are no work in government sectors, but we are going a little bit cautiously because as we are having sufficient order book for we have to handle at least the next 2 quarters. I shouldn't be hurry into a project wherein we compromise on our margin. So that's the strategy which I'm following and we are going a little bit cautiously. And going on a selective project where we can sustain our margins and sustain our credentials, what we have been trying to maintain since last 10 years.

Only -- so my only worries, sir, if I see the order book right now, so that you have about INR 2,500 crores of order backlog. So SDB this year, is targeting INR 1,300 crores of revenue, SDB would contribute roughly about INR 450 crores by the year-end. So from a base business, ex of SDB on this order book, we would be doing close to INR 800 crores, INR 850 crores of orders -- sorry, revenue. So next year, I'm looking like similar kind of a top line even for '16, when we would have expected some growth because of lack of new orders, so now I mean between now and maybe next 3, 4 months, it becomes very crucial for you to bring orders to continue to show that growth momentum even in the next year. Otherwise, we are looking at a degrowth from the current order book. So is my reading correct?

So tomorrow I get a order -- supposing if I get an order of INR 2,000 crore, everything will be solved?

Yes, yes, yes, that is what I'm saying sir now between and next 3, 4 months, it's very crucial for you to get these orders.

Yes, that's what we are also initiating, targeting, planning and doing that. But the thing only is we can't go into any such type of order where we bid aggressively so that we compromise on our overall of revenue side, our overall tech side. That's my worry. So probably 1 purchase of orders, orders will 110% come within March end. And we have sufficient order book to handle for next 2 quarters, even if we are not getting orders till March we are not going to get impacted in April or May. So that's my calculation, which I personally feel, we will let us go slowly for next 3 months. And even if within these 3 months I'm expecting more than INR 1,000 crores, not a problem in that. But the only thing is entering into any such types of project wherein we are just aggressively bidding just to maintain our top revenue. I personally feel we should not worry about the bid pipeline, an concentrate on the...

Yes, I agree with you totally agree with you, sir there's no point going aggressive. Just on the residential side, so large part of the pipeline is into revenue so this MEP order, which you talked about INR 2,000 crore. So is it for the captive use? Or like, is it the industry MNC or like it's a real estate developer, if you can just highlight that?

No, it's an industry, I mean it's a township, what we are saying in Gujarat it's an industrial MNC, so they are going for a township.

Okay, for the captive use?

Yes, yes, for the captive use.

Okay. And then 1 last question, sir, on this -- so it's good to hear that the precast facility has started getting orders from L&T and other players. So if you could quantify what could be the order size? And the second thing is whether the L&T will be themselves using your facility to manufacture precast there or they will be giving it to you to manufacture as per their design in their standard?

See there are -- see in bulletin, if you really understand there is which is always an oath form railway track, wherein they require noise barrier wall, they require tough, they require sleepers. And rest of the things has to be turn on site. So these are the materials which they will build, I think if you consider the total project that is being in the range of INR 600 crore to INR 700 crore requirement. So about they will be -- they are -- they themselves cannot handle such a large volume of installing a factory. So probably they will be distributing these to 2 or 3 suppliers who are -- there are 2 factories in Ahmedabad, 1 factory in Mumbai. So probably they will offload this to precasters like us who would be supplying them for next 1.5 years. So those buy back -- and they have to remake the years ready and the elevator wireless tracks ready. Then only they require this sleeper and tough for installation of tables and noise barrier wall, which has to be installed later.

You'll be manufacturing it for them the entire part of the manufacturing?

Yes, we'll be manufacturing, the installation will be done by them only. We will be supplying the material...

And will these have similar margins, which you are booking in the company currently?

Yes, it will be of the same margin because we have to calculate and put our cost of depreciation of plant also. So it will be the similar margin.

The next question is from the line of Chintan Sheth from Sameeksha Capital.

Congrats for the decent performance despite pressure we have been facing. Sir, a couple of things, apart from SDB, which is a participant you also alluded to the slowdown in execution. If I look at Torrent Pharma, Dahej project, that is also very going very slow. Bhiwandi, we last spoke that approval was in process but that also got delayed till February. So if I look at a couple of names like Pandharpur also our quarterly execution is around INR 4 crores, INR 5 crores, INR 6 crores around. That is not also very high given the size of the project. So I'm trying to understand why are we facing certain slowness in the execution in a few of the projects we are currently having?

You're asking that there is a problem in terms of execution for these 2 projects. This is what your question was?

Yes. Given the run rate in terms of quarterly execution, what I'm looking at, like Torrent Dahej project, the INR 72 odd crores of executable order is being for a couple of months, INR 2 crores or INR 3 crores of movement between the quarters is that would. Similar to Pandharpur, if you look at...

See probably is a project, which has been -- we are doing for pharma company is well aware about that this is a Torrent pharmaceutical's housing colony. They are much more cautious about these COVID guidelines. And to maintain the COVID guidelines, first 2 months of the quarter almost gone in terms of managing the whole infrastructure. And presently, we can say that network has put into -- geared up and into -- has came into speed in this last month only. So that's the only reason, there is nothing like that we are having and facing any problem related to our own self, but it is just because of the strict systems which they follow. Which we have to abide by. Otherwise, there is no problem. And regarding Bhiwandi what you said, yes, we have been trying a lot, and it is really a difficult task to get these approvals. But during this period also, the BPPR has also changed. So that is also given further 15 days, so they were trying to put the project under whole BPPR or it should be designed absolute BPPR, that is which is going on since last since 15 days, probably otherwise we could have got a substantial permission by now. But now I'm thinking that it should be still much extended. So they already have a meeting...

And what about the Pandharpur? I mean that project also is executing around INR 5 crores, INR 6 crores odd crore of execution?

Yes, Pandharpur, there is a problem in terms of marketing, they were having some draw on 26th of January because of some political reasons, they have delayed or postponed that draw. Otherwise, there is plenty of applications now, but there should not be any problem in terms of selling now. And now that is for whatever dealings -- because this is a -- we have started only 4 towers. And out of that 4 towers if you are able to generate this much revenue, it is too worth project demand for. Otherwise, you can have major -- more revenue in such small scope of work. So it is going on track, the only worry about the project, we can say is the saleability part, which has already been proved they have alive almost more than 700 applications. And they were having a draw on this 26 January. But due to some political reasons there in Pandharpur, they are postponing -- they have postponed it today. And probably it will continue what we are thinking about and now that should be an guideline in the quarter.

Right. And in the U.S. subsidiary, you mentioned that in March or April is that all that approval. Any capital -- additional capital required to fund that project from PSP Projects India to U.S. subsidiary?

Yes, it will be required from there. But what I've been saying that, that will resume some money required at this stage of filing the document. So that will be some fees which we have to send it from here, but I'm not expecting that to be more than INR 4 crores, INR 5 crores as of now. That's what I know about the project.

Right. And lastly, in terms of this INR 2.7 crores provision impairment, which we have -- impairment loss we have booked that is on -- is required and the balance equity which we acquire, whether we will be closing this subsidiary or merging it with PSP? How are we going to do that? What are the plans here?

The company was created just for the project of World Trade Centre, which are going to come in and around Gujarat. So it -- previously this company was created by the developer himself, he is taking a different company so it's 24% margin so at that time they were having a sort of making 3, 1 was in Bhopal, 1 was in Ahmedabad the third was in Jaipur. But as of now, because of their own financial crisis, they may not move for further projects. And this -- our stake is 76%, we have come -- purchased that company. And now we are going to mentor -- see if there is any project coming up or we can close this company at a later stage. But to settle the account, we purchased the company. As such there is no more project going to come in.

And there won't be any additional impairment pending on that part?

No, it is now already done and it is closed.

The next question is from the line of [ Vijayakumar ] from Spark Capital.

So my first question is on the residential real estate business of ours. So the order book split that we have right now tells about 35% booking from government residential projects. Sorry, 33%. So that will be our Bhiwandi project, right? Primarily.

Yes, yes.

So apart from this, the residential sir another subsegment say is 4% so residential is about 37%. So any plan to increase our exposure to, say, residential real estate going forward, given now there seems to be some positive headwind -- sorry, some positive momentum for the overall real estate industry?

See it is not about the -- we plan about that things that what will be -- what would be the share of our thing this part of the residential in government sector or private sector, it depends upon the opportunity. As I already declared in my bid book that we have already bidded for 1 large development company, which is about INR 500 crore in Ahmedabad. So such types of opportunities wherever we will get -- we will enter into that zone. Otherwise as such, there is no strategy within the company to have a order book bidding slippage into as much -- this many percentage government residential and this many percentage is private residential.

Okay. Okay. So -- but do you see increased interest or opportunity on the ground?

Yes, yes. We can say that in the last 2 months, there is a little bit movement in development sector in residential sector in Ahmedabad also. So probably, there are going to be a good opportunities at the residential sector in private also to get in with. But as of now, we are not planned of anything percentage where we will be bidding. That depends on overall opportunities which we are getting and what type of developer he is. So we will be a little bit selective in private sector.

Okay. Okay. And you also mentioned in your opening remarks that you expected a certain amount of inflow by December, which now got postponed. So what is this order?

There were 2 projects which we bidded for. And 1 was the National Railway University at Baroda, wherein the Shapoorji stood the lowest. And there was a huge margin -- huge difference of 4.5% against us. So he -- they were a little bit aggressive. I think that was the hope which we are expecting that we should get this order.

Okay. So we are hoping that we'll get this order?

Yes. No, no. We are not hoping now that this order should come that what we were planning to -- we were hoping.

Okay. Now Shapoorji has out bidded us. Okay got it. got it.

Yes. They've already got that order. But out of the INR 5,000 crores, whatever things which we can turn out as an order to the extent to INR 1,000-plus crores, which we are trying for next 3 months.

Okay. Okay. And so coming to the subsidiaries that we have. So if I look at our balance sheet numbers, as at the March 2020. So we have given about INR 28 crores to PSP Projects Inc. which is the subsidiary, which houses the projects in U.S., we would say. So that number remains the same even now? The amount of notes and advances we have given to the subsidiary? Or is it a different now?

Yes. It has reduced to INR 25 crore.

Okay. And so when are we expecting this money back ma'am?

See, now that much investment will be required in that company for the other projects, which will be carrying out as the approval starts through.

How much will it be required? .

This will be kept as investment over there only because land has already been acquired and project is under approval, from government authority.

No. So I'm asking how much investment is required from our PSP side?

Further, we are not requiring any investment except some of the fees, which will be in the range of INR 4 crores to INR 5 crores. So overall, the project has to be in the range of $25 million. So once we are proving the permission and do with the fees which we have to pay before the start of the construction, construction loan, we are going to get on the brand so that is not a requirement. But till we get the material -- till we reached to the main for construction loan, all the fees and the approval has to be on hand. And for that approvals, we may require further inclusion of INR 4 crores to INR 5 crores beyond whatever we have invested in it.

Okay. Okay. And this JV, we had for this WTC project, where we have now increased our stake to 100% from 74%. So there, are we seeing any or foreseeing any loan advances or moneys going to that subsidiary?

No, no, no. That company was created only for the WTC project, and this is the project is closed. And since we were having a major stake we had purchased the company. So later on, we may close that company also. There is no point in going for running that company separately against PSP, if we have a separate identity, then there has to be separate reason for that. So probably that company -- we are not having some future plan for that company. But just we bought because we are having 76% stake.

Okay. Okay. And finally, on our experience with the clients, especially from payments point of view. So yes, you talked about receivable days and all that. But are you seeing any slowdown in payments from any specific client? How is it right now?

So as such, there is no such cases, only 1 payment which has been prolonged since long is from Pandharpur because of the celebrity of the flat, they are not able to pay us so that's the only payment which have been delayed since last 2.5 months. Otherwise, all the forming payments are on time.

Which is this client sir?

Pandharpur Pradhan Mantri Awas Yojana because that is based on the celebrity of the members, since they have initiated late to the application and application process so lastly they were having this draw on January 26, which has been delayed to an extent. But that was the only project which has been not paid on time because the corporation was not having money as the members were not on board.

Okay. Okay. And so how is our interest cost now is because interest costs across have come down. So what will be the interest cost now on our working capital loans and all that different loans?

Yes, Mr. Vijay you can just make out from the finance cost itself. It has -- so we haven't reduced the utilization, but the cost has decreased. So on an average, 1%, 1.5% interest rate has been reduced. So from 8% -- earlier, it was like 8.25%, 8.30%. So now it is 7%, 7.25%.

Okay. Okay. And the bank guarantee commission, the LCBG charges, they have all also been reduced? Or is it?

No, no specific reduction in that only interest cost has been reduced.

The next question is from the line of Ravi Naredi from Naredi Investments.

Sir, my point is there EBITDA and profit after-tax margin are all-time low in this quarter. So where it may grow and up to what level we can reach?

See, if you go to the total results this quarter, as we said that because of COVID, there were huge expense on the side of putting traveling expense for these labors to come back, that was about INR 1 crore, INR 2 crore there is a provision of PSR, and there is a INR 2.75 crore impairment of these top PSP Projects Limited. So if you put all these 3 figures INR 5.75 crores into 390, it is almost 1.47%. So that puts to our original price before the creation within the range of 8.5%. So actually, if you see, it is not reduced to a larger extent it is just because of the impact of PSR provision of INR 2 crores. Major expenses to get the label by luxury, that was INR 1 crore and INR 2.75 crore is the provision, which was made for the increments of this year PSP Projects.

Okay. Okay. Sir, second, out of INR 2,500 crores order book we are having can you tell how much amount projects we still have to start work?

I've already told you that these 2 projects. 1 is Bhiwandi, which is about INR 600 crores, INR 575 crores. And second project is about INR 100 crore of that is Sabha Hall for Swaminarayan.

INR 675 crore order is still not work?

Yes, that out of that INR 575 crores will be starting in March.

March that is sure, INR 575 crores?

That is now 100%.

The next question is from the line of Ashish Shah from Centrum Broking.

Yes. Sir just a couple of questions. One, could you give the level of debt as of December? What is the absolute gross debt?

Yes, we have utilized around INR 90 crore of the bank facilities. And that includes INR 45 crores of accruals.

Okay. So this includes everything, right? I mean it included the equipment loan and everything?

Equipment loan is around INR 4 crore to INR 5 crore only. So that is separate. Long-term loan is different.

Sure. Okay.

So you can add -- it will be around INR 101 crore...

It come to about INR 95 crore. INR 100 crore. Okay. Secondly, are we seeing any negative impact of -- on margins because of the increase in the steel or the cement prices or reducing prices? And whether do you expect any sort of an impact going forward?

See as such, major of the project is passthrough. I think we are not having facing as such a big problem in terms of prices because of cement and steel but yes, the projects which we are having from the government side does not carry that special rate of -- it can be a passthrough. So yes, that there be some impact at Varanasi and Pandharpur. Rest of the projects are pass-through.

So -- but is it pass through by way of some indexation? Because rarely in which case you pass through...

No, no it is our actual basis. In private factor it is on actual basis, whatever differences you are having against purchase average purchase rate versus the base rate, so it is paid fully.

Okay. So basically, there are only 2 projects in which you are saying there could be an impact because of not 100% pass-through?