IRCON INTERNATIONAL LIMITED (NSE: IRCON) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Ragini Advani — Director Finance
Analysts:
Shreyans Mehta — Analyst
Debojit — Analyst
Parimal Mithani — Analyst
Gaurav — Analyst
Vishal Periwal — Analyst
Analyst
Jayprakash — Analyst
Dheeraj Kripalani — Analyst
Jinesh Kothari — Analyst
Bansal — Analyst
Presentation:
Operator
Good afternoon, everyone, and welcome to the Q3 FY ’25 post-results earnings Call of International Limited. I’m Mike, the moderator for this conference call. From the management side, we have with us Ms Ragany Advani, Director of Finance; Mr Alan Roy, CGM Finance; and Mr Ram Kumar Goyal, GM Finance.
Please note that this conference call is being recorded. At this moment, all participants are in the listen-only mode. Later, we will conduct a question-and-answer session. At that time, if you have a question, please press Tar and one on your telephone keypad. I would like to remind you that some of the statements that will be made today in today’s discussion may be forward-looking in nature. It is subject to several risks and uncertainties and the actual results could materially differ. I would now like to hand the conference over to Ms Ragany Advani, Director of Finance for the opening remarks. After which you will have the forum open for the interactive QA session. Thank you and over to you, ma’am.
Ragini Advani — Director Finance
Thank you. Thank you, Maheron. Good afternoon, everyone. I’m Advani, Director Finance. On behalf of my team, I extend a warm welcome to all of you and thank you for your presence today. For the earnings call for Q3 FY ’25. Financial results as well as presentations have already been uploaded on the stock exchange. And I’m sure that you have all had the opportunity to review them.
A very brief introduction on the financial performance of the company. Q3 results were subdued for the company, primarily due to completion of some major cost-plus jobs. And also we’ve had to made a provision for one of our projects in which we are expecting losses. And in our consolidated results, we also have one subsidiary company of ours where a major maintenance provision had to be created and which was also a one-off item. The company has reported total revenue of INR2613 crores in Q3 FY ’25, a PAT number of INR86 crores, which stood parallel to the same-period of last year. Core EBITDA has declined to INR139 crore vis-a-vis INR296 crores in Q3 last year.
Earnings per share stands at INR0.92 per equity share in this quarter on a face value of INR2 per share. Order book of the company as at 31st December ’24 stands at about INR22,000 crores, of which 53% is on competitive basis and about 47% on nomination basis. In terms of our domestic international split, 90% of our order book is domestic and 10% international. Has 11 subsidiaries and seven joint-venture companies. Now without taking much time, I would like to open the floor for Q&A session. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Participants who wish to ask a question may press star and one on your textone telephone. If you wish to remove yourself from the question queue, you may press star and 2. All participants are request you to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Shreyan Mehta from Equirus. Please go-ahead.
Shreyans Mehta
Yeah, thanks for the opportunity. I’m possible to quantify the one-off in the standalone which we’ve taken during the quarter, the provisioning number?
Ragini Advani
Yeah, yeah. So we have taken a INR38 crore loss in one of our projects. And we have taken a major maintenance and consolidated of one-off maintenance provision of INR45 crores, INR45 crores.
Shreyans Mehta
Sure. Yeah, sure. And sir, even if I adjust for this INR30 odd crores, the margins are much below what we used to be having at, say, closer to 6% plus. So how should one look at the margins going-forward?
Ragini Advani
So if you talk on a standalone basis, right, what has happened is that apart from the Chennai Metro project where we had to book a loss of INR38 crores, we have also had an overall impact on our numbers because one of our major cost-plus jobs, USBRL, which was the Udhampur Srinagar line. Now that line has almost completed and therefore, my revenue and the profit margin from that line has dropped. There has been a strain on my order book. I’ve not had new orders and since the overall mix of jobs that I’ve won on competition is contributing to revenue now, there has been a decline in my margins. And going-forward, I do expect those declines to continue for some time.
My March results will be decent, but overall, my margins will decline by about 1.5% to 2% from a short to mid-term perspective. The moment more competitive jobs come in and I start booking revenue out of that. And on a consolidated basis, the dip is extraordinary because as I mentioned that apart from this project loss, we have also taken a maintenance loss provision of INR45 crores. It’s not a loss, it’s a maintenance provision. And one of our joint-venture companies,, their Phase-1, there has been an OpEx loss, which is also significant. If you were to compare Nine-Month to Nine-Month period, it has an adverse impact of INR37 crore on my consolidated results.
Shreyans Mehta
Okay. Okay. Sure. Ma’am, coming to the second question, how should one look at the FY ’25 in terms of the top-line and the core EBITDA margins? And secondly, on FY ’26, what’s the guidance in terms of revenues? And even in order inflows, we’ve been guiding that order inflows will be picking-up, but at least nine months, you’ve not seen that.
Ragini Advani
Yeah. So first, coming to the fact of your guidance for FY ’25, FY ’25, we should be in the range of INR10,000 crores to INR11,000 crores in turnover. And in terms of my — I’m talking about standalone, another INR400 crores INR500 crores is what you add for consolidated.
Shreyans Mehta
Okay.
Ragini Advani
Yeah. In terms of my margins, I see a — my PAT margin was about 7.12% or little more, 7.2% last year. I see about 0.5% dip there.
Shreyans Mehta
Okay.
Ragini Advani
And going-forward, FY ’26, currently, my order book is on a strain. I will come back to the question on order book later. But having said that, my revenue numbers again should be in the range of INR10,000 crores as of now, based on the orders that I see right now or which I’m expected or I’m very confident that I’ll get. However, my PAT margins will go down further because as I mentioned, right now, my scenarios become very, very different. The market is going on an extremely competitive basis. So one, the projects that are coming out are of a small-size; two, I see that there are bidders as many as 20 to 25 and three, they are all coating below the estimate in many of the jobs. So given all this, my margins, when I get volumes or when I try to get an order, definitely I will not get them on losses, but yes, I will have to take a hit on my margins. That’s why I’m saying that going-forward, we will have about 1.5% to 2% dip from a mid-term perspective on our PAT numbers.
Shreyans Mehta
Got it. Got it. Got it. Sure. And I’m on order inflows.
Ragini Advani
Order inflows, see, right now in this financial year for nine months or till-date, I think we’ve had an order inflow of about INR1,700 crores. And given the reality that I’ve just mentioned, I am hopeful of getting another INR1,000 crore to INR1,200 crores by the year end, but I don’t see a very significant order book or I cannot commit at this stage that we will have some major order book before March-end. But we are making all our efforts. We are trying to continue to get some orders in this kind of a difficult market scenario. And let us see how it proceeds. But yeah, another INR1,000 crores is what I would like to say right now.
Shreyans Mehta
Got it, got it. Ma’am, just one clarification. So as far as F ’25 is concerned, revenues we are guiding for INR10,000, now PAT margin of closer to 6% and ’26 again top-line of 10,000 and another 100 basis-points of which is closer to 5% PAT margin. Is the understanding right?
Ragini Advani
Yeah. Yeah, that’s right.
Shreyans Mehta
Got it. I have a couple of more.
Ragini Advani
Yeah, and about 5% to 5.5% next year.
Shreyans Mehta
Got it got it. Sure. I have a couple of more questions. I’ll join back-in the queue. Thank you.
Operator
Thank you. Participants who wish to ask a question may press star and one on your telephone. Participants who wish to ask a question may press star and one on your touchstone telephone. We have the next question from the line of Devojit from RDP Investment. Please go-ahead.
Debojit
Hello. Hello. Yeah. Good afternoon, ma’am. Yeah. Ma’am, I would like to understand if the scenario you are saying there will be hit as there are competitive competition, high competition which is going on. So by — are you planning to take more-and-more orders in volumes while the margin will be low or how is it your planning? Because if you see the condition right now as you are saying the margin — firstly today if you have checked the market capitalization of our company has gone down, it has eroded more than 50% of the market capitalization. And if you’re further saying that there will be a margin hit going-forward, I don’t understand where exactly will be the things like. So as a investor, as a shareholder point-of-view, what steps the company or the Board of Directors are taking to make the things better for the investor, shareholder, for the company? And secondly, going-forward, how the order inflow you are planning ma’am for the coming financial year. That is more-and-more orders as a volume party will be going ahead with less margin? And my second question will be any plan for any further bonus share issue or any split in the share to reward the shareholders or any high dividend payout?
Ragini Advani
I think I will start addressing your questions one-by-one. The first thing is, yes, the company has given excellent results till now and we are pretty much a company which is very hardworking, has the requisite experience, has the requisite credentials and a very, very professional management. So there are no doubts of how the company is performing or what its management is looking at. We are definitely wanting to do our best, but there are certain circumstances which are beyond us. Right now, the market is such that even if we want, we cannot get the projects at the kind of interest rates that we want or the kind of complexities and the value addition that we want to put into those projects.
So we have no-option but to play with the market rules currently. And there, I don’t think I will be deciding whether I’m looking at a volume game or a margin game because that period has lapsed. In fact, last-time, I thought we could play that game and we were saying we will not compromise on our margins. But now that situation has also gone. So I have no-option but to take volumes to continue surviving and having some minimum profits in our company. And in those volumes when I take the margins will be hit because that is how the market is right now. So that is where I am. And obviously, given the situation of the company right now, it will not be possible for us to look at any kind of dividend increase. Yes. So it is a long-term company. There are cycles which come. This is a cyclical area where we will need to survive, but growth may not be possible in this time.
Debojit
So this kind of period you are saying will be for this particular year or going-forward for the next financial also?
Ragini Advani
I’ve already mentioned that it will continue for FY ’26 because see, whatever orders I take, it doesn’t get converted in the same year. Many of those orders by the time I’m given a little forward, then I start working on it and then I start booking turnover on it. So typically the impact comes over a period of anywhere between six months minimum to a period of about 2.5 years, three years. So I see this going on for some time and therefore, I have lowered my projections even for FY ’26.
Debojit
Okay. Thank you. And as you said that in this particular quarter, there were certain provisions which has taken place. So are any kind of scenario where you are as any kind of assumptions or any kind of scenario that where going-forward in next quarter also this kind of provision will take place?
Ragini Advani
No, because whatever we were aware of, we have already taken them back.
Debojit
Okay. Yeah. Okay fine. Thank you. Thanks. Yeah. Thank you. Thanks for the thoughts.
Operator
Thank you. We have the next question from the line of Parimal Mithani from Credential Investments. Please go-ahead.
Parimal Mithani
Hello. Hello,, I’m, can you hear me?
Operator
Your audio is a bit low. You will go off the speaker phone once. Yeah Mr Parimal, can you hear us?
Parimal Mithani
Can you hear me now?
Ragini Advani
Yes, yes, yes, yes
Operator
The participant has dropped off from the call. We move on to the next question from the line of Mehta from Equirus. Please go-ahead.
Shreyans Mehta
Yeah. Thanks for the follow-up opportunity. So ma’am, if I just calculate your guidance in terms of PAT margins, if you are assuming 5% at PAT level, so are we trying to indicate the EBITDA — core EBITDA level will be closer to say 2%, 3% because largely other income forms closer to 3%, 4%.
Ragini Advani
No, I think my core EBITDA was in the region of about — if I’m not wrong, FY ’24 it was in the region of 9.2%.
Shreyans Mehta
You’re talking about standalone or
Ragini Advani
Consolidated
Shreyans Mehta
No, I’m referring to the standalone margins. You’re assuming the guidance which you’ve given on a standalone, 9% — sorry, 6% PAT margin. And if I remove other income, which is closer to 2.5%, 3%.
Ragini Advani
So yes, so 6.39 is what I had last year, my core EBITDA, right. It should take a dip of about 1% going-forward, 1.5% you can say, yes.
Shreyans Mehta
Got it. Got it. Got it. And at the same time, the other income too would be on a increasing side because the coal SPVs would be started generating some amount of revenues or throwing some profits from there.
Ragini Advani
So Shreyansh, what has happened is that we still have some investments which are happening, construction. So the income wouldn’t come from there. And as far as coal JVs are concerned, my Chattisgar Phase-1 project is continuously giving me losses and is expected to do so for another two to three years at least. So to that extent, other income may not improve as you are thinking because some of this money that I’m sitting with I would be putting in investment and the rest, as I mentioned to you, some of my coal JV projects will be a problem for me for some time.
Shreyans Mehta
Got it. Got it. Got it. Sure. And ma’am, two book-keeping questions. One, what is our own cash-in bank and what are the investments still date we have done and what is the amount pending?
Ragini Advani
So our cash and bank balance is about INR820 crores, our own cash and bank balance, right. And as far as investments are concerned, we’ve done an investment of INR230 crores right now in this financial year nine months period in our equity projects, PPP projects. And going forward, we will have another INR900 crores to do, out of which you can say about INR200 crores in the balance period of this year and the rest would be spread over next year and next to next year.
Shreyans Mehta
Got it. So basically our investments would be say closer to INR2,300 plus INR230, which is INR2,500 odd crores as on-date.
Ragini Advani
That’s right.
Shreyans Mehta
And 900 odd is what we have to incrementally infuse.
Ragini Advani
Yeah. So let’s say another 700 up to this 200, so 2,500 plus INR700. Yeah, so it should go-around in the range of 3,000 plus.
Shreyans Mehta
Got it, got it. And ma’am, anything on the BD or in terms of order inflows, which are the segments we are targeting and where we could potentially be getting some orders. If you can throw some light on that.
Ragini Advani
So our core segments remain railway and road. But in-roads, what has happened is I’m focusing more on EPC projects right now. And in railways, though, what I’ve done is one of I had decided earlier that I will not go below an order value of INR500 crores, but we have started pitching in for smaller bid values also. The reason being that is what is coming. So we decided we’ll have to be a part of that game. And within that earlier I used to take mostly jobs on consolidated basis, which means I would be in-charge for civil plus electrical plus S&T. Now what I’m doing is I’m even getting into where I feel it’s a pure electrical job or a pure S&T job as well. So I’ve started pitching in for all those also because the expertise is there, the experience is there. So that is where we have decided to get into as well.
Shreyans Mehta
Got it. Got it. And any guidance which you would like to give for FY ’26 in terms of order inflows, what are we targeting?
Ragini Advani
Very difficult because there are certain orders which I thought should be coming this year, but they haven’t come. And the market is so, so very competitive that it would be very difficult to even predict how many of those we’ll be able to become L1. So we will guide you as and when we are more confident about it.
Shreyans Mehta
Got it. Got it. That’s it from my side. Thank you and all.
Operator
Thank you. We have the next question from the line of Gaurav, an individual investor. Please go-ahead.
Gaurav
Good evening, mam. Good afternoon. Good evening. My first question is with regards to the order book. What is the total order book until what time — time period is it executable?
Ragini Advani
So we have an order book right now of INR22,000 crores. And out of that INR22,000 crores, I mean, if you were to do a simple mathematical thing, then it’s for about little more than two years. But what happens is that the order book that we have, some of our projects will continue beyond ’27, ’27 ’28 also. So to that extent, I will have to get more orders to get the revenue line of about INR10,000 crore every year.
Gaurav
Okay. And what would be the split ma’am between domestic and exports, international orders?
Ragini Advani
47% is domestic and 50% of 47%. Domestic and international is 90%. 47 55 is nomination and competition.
Gaurav
Okay, okay. Okay. My second question was that why is the employee cost gone down both on a quarterly and nine-month basis?
Ragini Advani
They have not gone down. They’ve gotten down. They’ve gone down, gone down.
Gaurav
Why have they gone down?
Ragini Advani
Okay. So they’ve gone down because there are certain things. One, there have been some retirements. We have not taken more people because at the end of it, it has to be a game of revenue versus cost. Two, we have also done some PF provisioning last year, which has now not been required to be done again. So that is the reason my employee cost has gone down.
Gaurav
Okay, okay. And what would be the total employee count?
Ragini Advani
Our employee count is about — regular is about 800 and total is about 1,000 plus.
Gaurav
Okay. Thank you. If I may just squeeze in one more question, my last one. Why is the other income negative in the international segment?
Ragini Advani
That is because of some foreign-exchange loss that we had to book. It is a book entry. It is not an actual loss because of the closing balances of some currency.
Gaurav
Okay. Okay. Thank you so much, ma’am. That’s all from my side.
Operator
Thank you thank you. We have the next question from the line of Periwal from Antique Stock Broking. Please go-ahead. MR. Periwal, you may go-ahead with your question.
Vishal Periwal
Yeah, I’m audible now?
Ragini Advani
Now yes please
Vishal Periwal
Regarding pending order book that we have ready.
Analyst
I’m sorry, I could not understand your question. Your voice was breaking.
Vishal Periwal
So no mentioned that metro had to loss. What is the ending
Ragini Advani
I am not able to get your question. I think your voice is breaking. If you could come back to it. I know you are asking something about Chennai Metro, but I am not able to understand the full question pending order book of Chennai Metro. Pending order book of Chennai Metro is about INR200 plus crores, but we’ve taken the total hit right now.
Vishal Periwal
Okay, okay. Okay. And second, have we started executing,
Operator
Your audio is not clear. Please go off the speaker phone since you hear us? Since in response we move on to the next question. We have the next question from the line of Jay Prakash, an Individual Investor. Please go-ahead.
Jayprakash
Good evening, ma’am. Can you hear me?
Ragini Advani
Yes, we can.
Jayprakash
Compared to FY ’23 and ’26, they have reduced to INR5% crores, which is their railway.
Ragini Advani
If you can speak really slowly because I’m not able to understand your question please.
Jayprakash
For the railway, the government recent budget DSU allocation capex they have compared to FY ’25 to ’26, they have reduced INR5,127 crores.
Ragini Advani
Who has reduced 5% capex
Jayprakash
, government capex allocation
Ragini Advani
Capex allocation by government of India.
Jayprakash
Yeah okay so how do you see that for the next four quarters are we are going to get all the government itself it’s not increasing the capex allocation for the PSU.
Ragini Advani
PSU does not get any project on nomination basis. We have to compete in the market and whatever is the capex that’s being planned by Government of India in infrastructure projects, railways or roadways, we are like any other private player. So as and when they bring out the tenders, we plan to bid for them and go-ahead and see how many of them we can win.
Jayprakash
That’s how much are willing to spend more on the capex, how you are going to increase your top-line growth if you don’t get opportunities, more opportunities, how do you foresee that? How it is going to affect your margins?
Ragini Advani
The 5% decline is not making too much of a difference to my top-line because it’s a huge number that government is spending. So it’s about INR2.65 lakh crores is the budget for railways, and I think almost a similar amount or more for roadways. So there is a huge amount still of capex that government plans to spend on projects. Not all projects is what I am interested in. I don’t bid for rolling stock and those kind of projects. But whatever are the projects relating to my area, there are enough opportunities that will come. That is not an issue. And — but the point is how many of them I am able to bid in this competitive environment
Jayprakash
Okay. So you are optimistic about your next four quarters, you are going to get more orders.
Ragini Advani
I haven’t said that. I’ve only said that next four quarters we will continue to target getting more jobs, but I haven’t quantified the number that we’ll be getting.
Jayprakash
Okay, fine. My second question is, have you completely exit the Chennai metro or still you are invested with Metro because you said that you have booked loss in this quarter.
Ragini Advani
See, we are not investing in Chennai Metro. We are doing an EPC project for them. In that project, I’m going to have losses, which is what I have booked. Projects that I’m doing, one of my project is going into losses and therefore, I’ve booked a loss on that project.
Jayprakash
Okay, sir. My third in your investor presentation, page number 22 that is in your order book, you have said you have INR89 crores of other, right?
Ragini Advani
INR89 crores of other order book.
Jayprakash
Yeah. So you primarily you are in the railways and highways in other you have — you are willing to explore any other areas like airport construction that government is more interesting about because
Ragini Advani
In airport, we have right now only one or two jobs which are PMC. And other than that, we are doing some setup — civil building setups for MSME industry. These are technical centers that we’re going to be setting up for them. So that is where INR89 crores order book is coming.
Jayprakash
Okay, fine. Thank you. I wish that you — next four quarters you must complete — you try to keep on growth trajectory.
Ragini Advani
Sure, sure. We need wishes from you all. Thank you.
Operator
Thank you. Participants who wish to ask a question may press star and one on your touchstone telephone. Participants who wish to ask a question with star and one on your Techstone telephone. We have the next question from the line of Diraj from Avendus Spark. Please go-ahead.
Dheeraj Kripalani
Hello. Am I audible?
Ragini Advani
Yes, please?
Dheeraj Kripalani
Yeah. Thanks for the opportunity. So I was just giving you one question. What is the current bid pipeline is looking like in the railways and the highways projects?
Ragini Advani
I mean if I was to talk about the bid pipeline, it is very, very good. It is about INR60,000 crores, but then that by itself has no meaning when you have something like 25 to 30 people bidding for it, and they are bidding less than estimate and also there is a reverse auction in it.
Dheeraj Kripalani
INR60,000 crores overall including railways and highways both or in the highways only?
Ragini Advani
Both. I was only looking at EPC.
Dheeraj Kripalani
Okay. Okay. Thank you
Operator
Thank you. We have the next question from the line of Parimal Mithani from Credential Investments. Please go-ahead.
Parimal Mithani
Yes, okay. Can you hear me, ma’am?
Ragini Advani
Yes, please.
Parimal Mithani
Yeah, ma’am, I just wanted to know you had a monetization of certain road assets. Have they happened or they are not yet in the pipeline?
Ragini Advani
Still in the process of approval within Government of India systems.
Parimal Mithani
So it’s always been a long-time and why are we — what is the reason for that?
Ragini Advani
Well, the reason is that I mean it will not be, but I presume there are multiple people from whom approvals are required within Government of India. And because this is something that we are monetizing at our level and not at the level of government of India. So the file goes to and fro. There are questions that are asked. There are times when we are asked to make the presentation. So it’s taking its own time.
Parimal Mithani
Okay. And ma’am, in terms of margins that you alluded, there will be some pressure for next two years. So how do you see in terms of improving post that many right now you see feel a lot of questions.
Ragini Advani
I didn’t get your question.
Parimal Mithani
So can you hear me, ma’am?
Ragini Advani
Yes, I can, but in-between your voice had gone off, so I couldn’t understand your question.
Parimal Mithani
Regarding the margin pressure that you mentioned, ma’am, in terms of the competitive bidding also getting extensive. So how do you plan to basically get orders that are work to your margin profile basically, ma’am
Ragini Advani
We won’t get it according to our margin profile, which is what I’ve been saying that we will be taking it on our margins.
Parimal Mithani
Okay. Okay, ma’am. Thank you.
Operator
Thank you. We have the next question from the line of Jitesh Kothari from Elara Capital. Please go-ahead.
Jinesh Kothari
Yeah, hello, am I audible?
Ragini Advani
Yes, please.
Jinesh Kothari
Yeah. I only had one question regarding the MSRDC project. So we stood L1 or almost a year back now. So how are you looking at like receiving the LOS from the government since the elections are also over? And can we expect the projects to be included so into our order book.
Ragini Advani
We also wish as you wish that it comes up to us as soon as possible. But as of now, we have no news from there in terms of their expediting it or how or when are they planning to do it. Even when we’ve been asking them, we’ve been told that they’ll take some more time and that is the last news that we have.
Jinesh Kothari
Yeah. So ma’am, is there any renegotiation with respect to the pricing of the contracts or that has been the case?
Ragini Advani
No, no, they haven’t called us for that.
Jinesh Kothari
All right. Thank you. Thank you.
Operator
Thank you participants who wish to ask a question may press and one on your telephone. Participants who wish to ask a question may press star and run on your Techstone telephone. We have the next question from the line of Bansal, an individual investor. Please go-ahead.
Bansal
Hi, thanks for the opportunity, ma’am. I joined this call a little late. I just have a couple of questions. Firstly, relating to margins, the revenue — this is revenue which we are booking is relating to an initial order book and this must-have been planned at 8% to 10% of margin. Then why we are getting margins as of now on this order book, not in these upcoming order books and what will be the order in book? So we are not getting any of the orders and within couple of years, we might lose the current order book completely.
Ragini Advani
So I think you’ve joined late, so I will explain again. We have had a problem in terms of getting more orders. I mentioned that the market scenario is such that there are small value packages which are being taken out or being bidded and there are some multiple competitors in the range of about 20 to 25 and many of these competitors are actually quoting much below the estimate. And if we were to — in all kind of bids, they’re all kind of players, but if some of them we were to match, we will never ever get margins out of those jobs. So while we understand the market and we are continuing to put our efforts, but at the end of it, whatever our orders we will get-in future, one, there has been lesser inflow of orders. Two, whatever orders we get-in future, we will have better margins therein. So I hope that answers your question.
Bansal
Basically, others must also be doing something to get the margins. They will not be executing those contracts at losses. So what is that which we are not even doing so that we are not being able to execute those kinds of orders?
Ragini Advani
Actually, that’s a very, very complex topic for discussion. And all I can say or assure you from management perspective is that it is a mix-and-match. Not all see players are serious and a lot of them are doing as a market entry or a credential game. Having said that, we know what our costs are. Your company, this company is one of the efficient companies when it comes to our total fixed costs that we have other than the orders or the expense for the orders. So to that extent, we are deep diving into it. On a case-to-case basis, there are reasons, but I think it will be a little difficult to explain all of it right now. Then we just want to make sure that we are doing what best we can do.
Bansal
Then our 63% of the order book is on bid basis. Remaining 47% is on nomination basis. So we are not even getting orders from the basis of nomination as well.
Ragini Advani
Sorry, the nomination orders we are executing and in future, there is no nomination bit that we are going to get.
Bansal
And why change in this scenario, because currently we have around 10% change.
Ragini Advani
Now this has been a change for the last three, four years. Whatever orders you’re seeing in our order book right now out of nomination, it is four year-old.
Bansal
Suman to remain competitive in such a segment what is next which we should be doing to — so that we also spend and
Ragini Advani
I think we will take you off the record because the questions that you’re asking is more in terms of understanding how we are planning to do nitty-gritties in each project, and that’s something I will not be able to explain over this call, please okay.
Bansal
But ma’am, that is what the investor is asking as of now, because our share prices have declined 50% to
Ragini Advani
Discuss with you of the line.
Bansal
Okay,. Thank you. Thanks.
Operator
Thank you. The participants who wish to ask a question will press star and one on your touchstone telephone. As there are no further questions, I would now like to hand over the conference to the management for closing comments.
Ragini Advani
Thank you so much. Thank you for moderating the call. I would also like to thank our shareholders, business partners, analysts, investor friends who have continued to show faith. See, the company is fundamentally very strong and there are phases which comes in every industry or every company when there are ups and downs. It is a part of our downward journey, but we are trying to revive as much as we can and we are still delivering good profit. So that is where we are. However, having said that, we are happy to connect on all the concerns on one-to-one basis if required and for addressing any further queries that you all have. And with this, I conclude today’s con-call and thank you all for the active participation.Thank you so much.
Operator
Thank you for joining this call. You may now disconnect your lines. Thank you.