Vishnu Prakash R Punglia Limited (VPRPL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Vishnu Prakash R. Punglia Limited Q2 FY '25 Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sumant Kumar from Motilal Oswal Financial Services. Thank you. Over to you, sir.

Thank you. Good afternoon, everyone, and very warm welcome to Vishnu Prakash R. Punglia Limited 2Q FY '25 Post Result Earnings Call hosted by Motilal Oswal Financial services. On the call today, we have management team being represented by Mr. Manohar Lal Punglia, Managing Director; and Mr. Sarfaraz Ahmed, CFO. We will begin the call with key thoughts from the management team. Thereafter, we'll open the floor for Q&A session. I would now like to request the management to share their perspective on the performance of the company. Thank you, and over to you, sir.

Thank you. [Technical Difficulty]

Sorry to interrupt, but the line is not clear. Sorry to interrupt. This is the moderator. Sir, the line is not very clear for you. This is slightly better. Sir, please go ahead.

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Thank you, sir. Good afternoon, everyone. I'm Sarfaraz Ahmed, CFO from the company. I take this opportunity to address you all today and provide an overview of the company's financial performance for second quarter financial year 2025. It is my responsibility to present a comprehensive picture of our financial health and the factors that have influenced our results. For the second quarter under review, our revenues from operations stood at INR 335 crores, which increased by around 13% on a year-on-year basis. The EBITDA was reported at around INR 49 crores, which increased by around 27% year-on-year with the EBITDA margin reported at 14.51%. Net profit for the quarter stood at around INR 24 crores, which increased by 12% year-on-year, and PAT margin for the quarter stood at 7.08%. For the first half of the financial year 2025, our revenue from operations reached INR 591 crores, which increased by 3% year-on-year basis. EBITDA was around INR 82 crores, representing a year-on-year growth of 16% with an EBITDA margin of 13.90%. Net profit for the period was approximately INR 39 crores, which grew by 2% year-on-year, and the PAT margin stood at 6.51%. The quarter under review saw some marginal impact from the monsoon season. However, we are well positioned moving forward. Our order book stands strong at approximately INR 5,086 crores, with the operations expected to accelerate in the coming quarters. We remain confident of achieving robust growth. During the first half of the current financial year, we secured new orders worth around INR 1,104 crores, further strengthening our project pipeline. Additionally, we are pleased to announce that we have expanded our operation in the state of Goa as well. Looking ahead, we have a strong pipeline of prospecting new bid value at approximately INR 5,000 crores. The bids are expected to be opened in the coming months, which will help us to sustain our momentum and enhance our operational outlook for the future. With this, we can now open the floor for question-answer session.

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Vishal Singh from Finvestors.

Congratulations sir, first of all for your good results. My first question would be, sir, what we are doing for the trade receivables, which we posted last quarter, that was for within -- pardon me, which was posted in March that within 6 months, the trade receivables will be received like that. But as per your balance sheet, we cannot see that. Further, which makes me realize that borrowing has been increased -- and that -- due to that, the interest cost has increased and which is actually hampering our PAT numbers. So what you are doing for that, sir?

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What is the expected timeline for it sir? [Foreign Language]

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And sir, what is our working capital? [Foreign Language] No, no working capital. How much capital we required for the work of for the quarter. So [Foreign Language] What is the working capital currently. Not days. Days is posted in balance sheet.

So INR 750-plus crores we have actually requirement.

Pardon sir.

Sir, it is INR 750-plus crores.

INR 750-plus crores.

Yes sir.

Okay, sir. Sir, what are you thinking about debt. [Foreign Language] Are we thinking about reducing the debt or not sir?

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[Foreign Language] But with the ratio, [Foreign Language] that is quite worrisome for we investors? Do we feel like we should know that. So are we going to do anything about that after the cash flow goes...

Obviously sir. [Foreign Language]

The next question is from the line of Raj Saurabh from Finvestors.

[Foreign Language] That means we need more debt to carry out our further operations for the next 6 months?

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Congratulations, sir. You have posted good numbers in this monsoon season.

The next question is from the line of Prateek Bandari from Art Ventures.

I just wanted to know the order inflow for this particular quarter. We have stated that out of INR 110 crores of total order inflow that we have secured during the year. I wanted a breakup of this particular quarter.

Sir, this particular data, we have got orders of INR 161 crores in the -- up to June and July, we have got INR 943 crores orders and we got INR 161 crores orders more in this quarter.

Okay. INR 161 crores of order in this particular quarter. And what will be the breakup -- the segmental breakup of these order inflows?

Sir, we have got orders of water supply projects of INR 342 crores.

No, no. Second quarter. [Foreign Language]

This is water supply -- okay.

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The next question is from the line of Rajesh Bandari from Nakoda Engineers.

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Sorry to interrupt we request you to please rejoin the queue for follow-up questions.

Only one more question now. [Foreign Language]

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The next question comes from the line of Siddhartha from Caprize.

So just wanted to know the receivables at the end of October, yes.

Sorry, pardon sir.

So by the end of October, could you tell me the receivables that you have on the balance sheet?

For October receivables sir?

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[Foreign Language] to engage the deduction in the receivables.

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Sir, so to meet the guidance that we have given, your revenue in H2 should be twice that of the revenue that you posted in H1.

Sorry pardon sir.

[Foreign Language] So if you want to reach your guidance, you have to clock twice as much EBITDA revenues that you have made in H1?

Sir, we have already executed the work, but certification is pending from the department. And just they received, got the budget and they will approve our work, it will surely boost.

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We are expecting a growth of 10% to 15%, sir.

In top line?

In top line.

So that means, Q3 will [indiscernible].

Yes sir.

The next question comes from the line of Omkar Chitnis from Trade Brains Private Limited.

Sir, I have a couple of questions. Now in first question, can you provide profit margin in water supply, railway projects and road projects in the Q2, sir?

This is almost same in railways, water supply and roads, almost same.

Okay, sir. And my second question is due to some geopolitical tensions and due to economic uncertainties in the market...

Your voice is not audible, sir. properly.

Okay. So to some geopolitical tensions and due to economic uncertainties in the market, cost of raw materials are rising like steel, cement and to some extent labor costs. What actions are you taking to maintain your profit margin for FY '24, sorry FY '25?

In most of the projects, there are price variation clause in the tender document. We got the benefit of price variation if there is increase in any material cost or labor cost.

Can you elaborate on that, sir?

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Okay. Do you have any plans to acquire any cement companies? Because cement price have substantially increased in the last 1 year.

No sir. We are receiving from the manufacturers directly. As of now, we don't have any plan to acquire any company.

Okay. Sir, my last question, you have already a joint venture with VA Tech Wabag. Are there any future collaborations with VA Tech Wabag for waste management projects, and to global reach [indiscernible]. Are you any plan with that?