Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Afcons Infrastructure Limited (NSE: AFCONS) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Srinivasan Paramasivan — Managing Director
Ramesh Kumar Jha — Chief Financial Officer
Hitesh Singh — Head Corporate Strategy
Analysts:
Kishan Gopal Mundhra — Analyst
Shravan Shah — Analyst
Unidentified Participant
Ankita Shah — Analyst
Janam Jain — Analyst
Mudit Bhandari — Analyst
Sriram Kapoor — Analyst
Balasubramanian — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the AFCON’s Infrastructure Q4FY26 earnings call hosted by Dam Capital Advisors. As a reminder, all participant lines are in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Kishan Mundra from Dam Capital Advisors. Thank you. And over to you, sir.
Kishan Gopal Mundhra — Analyst
Hi. Hi. Thanks, Alaric. Good morning everyone and a warm welcome to the Q4FY26 earnings call of AFCON’s infrastructure. So today we have the management with us which is represented by Mr. Parmasivan Srinivasan, who is the Managing Director, Mr. Ramesh Kumar Jha, the CFO and Mr. Hitay Singh, the head of Corporate strategy. Now at this point I will hand over the floor to the management for the initial remarks post which we will open the floor for the Q and A. With that, over to you, sir.
Srinivasan Paramasivan — Managing Director
Thank you, Kishan. Good morning ladies and gentlemen. I welcome all investors, analysts and participants to the Q4 and financial year 26 earnings conference call of Afghan Infrastructure Limited. We appreciate your continued support and participation today. Our financial results and investor presentation for the quarter and year ended March 26 have been uploaded on the stock exchanges and I trust you had an opportunity to review them. Joining me today arms of Ametya, our CFO and Mr. Hitesh Singh, our head of corporate strategy.
Financial year 26 was a challenging year for the infrastructure sector and the overall performance during the year remained far below our expectations. First of all, I apologize to all the investors that we have made a loss in a quarter for the first time since we started publishing quarterly numbers from 2010. We view this as an exception. In fact, it will not be out of place here to mention that I am personally deeply upset with the results. And I am sure that this could be an aberration or a one time exception and will change.
For the year, revenue stood at 12,322 crores, reflecting a decline of 5.4%. Year on year, EBITDA was rupees 1,439 crores. And despite the moderation in performance, we maintained a healthy EBITDA of 11.7%. This continues to be among the better margins in the industry. Profit after tax stood at 251 crores after providing 76 crore for one time impact arising from the implementation of the new Labor Code. If we exclude that PAT will be 327 crores for the fourth quarter, revenues were 2,777 crores while EBITDA stood at 170 crores.
The quarter closed with a net loss of 89 crores impacted by certain project specific developments, provisions and one time factors during the period. The year was characterized by slower than anticipated ordering activity across several segments, delays in project conversion, prolonged tender, evaluation timelines and execution related disruptions in certain projects. Our top line during the year was also impacted by continued liquidity constraints at the client level which affected execution momentum in some projects longer than anticipated.
In addition, certain overseas projects witnessed temporary disruptions during the fourth quarter due to geopolitical developments in the region. A few projects that were expected to ramp up during Q4 also experienced delays arising from the design and alignment related changes. Taken together, these factors had a meaningful impact on the revenue growth and profitability during the year. However, we continue to view this as largely timing related and external factors rather than structural issues in the business or our execution capabilities.
Despite these challenges, we continue to make progress across several strategic and operational priorities during the year. The HRRL Crude oil terminal project at Mundra, part of one of India’s largest integrated refinery and petrochemical complexes, was commissioned reflecting our growing capabilities in industrial and energy infrastructure. We also witnessed the operationalization and inauguration of several infrastructure projects completed by Afghan during 2006 including sections of the Bangalore Double Decker Metro and Flyover Canada as a part of ongoing elevated Metro project.
This section was executed within one of the world’s and Bangalore’s busiest live traffic environments with minimal disruption to city traffic. Sorry. In addition, successful trial runs were conducted on our Agro and Kanpur Metro project while Delhi Merit RRTS corridor where Afcon executed two packages became fully operational. Our execution capabilities and institutional strength also continue to receive recognition during the year. Engineering News Record USA ranked AFCON 8th in marine category globally and 12th in international bridge contractors, reinforcing our position in technically complex infrastructure segments.
We were also honored with the prestigious Mike award for the 8th consecutive year and overall the 10th year. If you take Mike and Mike together, reflecting the institutionalization of knowledge management and innovation practices across the organization. Turning to our own internal business, I am pleased to share that we have received a proposal for the rehabilitation construction of the railway line project in Croatia for which we were declared L1 last year. We expect the relationship formalities to conclude shortly.
As disclosed recently to the stock exchanges, the two Croatia road tenders where we were declared L1 have been cancelled by the client due to budgetary constraints. While this is disappointing, we continue to remain positive on the long term opportunity in the region. On the Mumbai Ahmedabad high speed rail C2 project, the second confinement of the tunnel boring machine which had remained held up for several months has now been received at site. Assembly activities are progressing well and the main drive has already been lowered into the shaft.
We expect tunneling operations to commence before end of next quarter. Coming to Order Inflows during financial year we secured new orders worth 4,125 crores, excluding approximately 3,800 crores of variation and change orders received on existing project. The order intake was below our earlier expectations largely on account of deferment of several large project awards and delays in conversion of L1 positions into firm orders. Particularly in the fourth quarter, you would have noticed that we have booked around 8,000 crores of orders and declared L1 in another around 7,000 crores of new orders so far in this financial year.
We expect these L1 orders to get converted in this quarter with this last year order booking guidance backlog will be completed in the first quarter of this financial year itself. That said, we have seen encouraging progress on some of these opportunities both in domestic and international markets in recent weeks. Our addressable pipeline remains robust across key segments transportation, marine, underground, hydro, water and industrial infrastructure having a certainty of about 15,000 crore order including L1.
In the current financial year, we expect to book another 15,000 crore of more orders making a total order booking guidance of 30,000 crores for the current financial year. At this stage, considering the continued uncertainty in the geopolitical environment, elongated award cycles and ongoing project related developments, we believe it would be prudent to wait for greater visibility before providing specific revenue growth or EBITDA margin guidance for financial year 27 to conclude. While financial year 26 was undoubtedly a difficult year operationally, we remain confident in the long term fundamentals of the business.
Our diversified presence across sector and geographies, strong execution capabilities, healthy opportunity pipeline and disciplined approach to growth position us well to navigate the current environment and capitalize on opportunities as sector conditions improve. With that, I now invite our Chief Financial Officer Mr. Ramesh Jha to take you through the financial performance in greater detail. Thank you all.
Ramesh Kumar Jha — Chief Financial Officer
Thank you sir. Good morning everyone. Before talking on the Numbers Let me reiterate that our quarterly number varies. Companies into the business of construction. The margin in a quarter varies based on the nature, type and quantum of work executed. So quarterly results may vary in different quarter and may not be indicative of the annual result or trend. Now moving into the specific numbers. In Q4FY26 we had a total income of 2,777 crores. This is 18% down as compared to Q4FY25 wherein we had done 3,387 crore crores.
For the full financial year we have done 12,322 crores which again is 5.4% down from the previous year. 25 wherein we had done 13,023 crores. Now specifically in Q4 we have seen that the payments were not coming from the from the customers. Payments were not very smooth from majority of the customers working capital funding to the projects continued in Q4 as well and under the circumstances we decided to balance between funding projects and maintaining liquidity. So we funded projects up to a limit but we had not gone beyond a point to avoid overexposure to any customer.
This limited our turnover in some projects. Also in Q4 there were after the war there was poll and gas related issues in projects, consumables and logistics related challenges. Especially this was in the overseas market which kind of marked the planned progress. Usually we have seen that in Q4 we do at least 15 to 20% turnover more than Q2 Q3 and that is backed by smooth payment from the customers and that gives us the benefit of economies of scale and improves profitability significantly in Q4 and then impacting overall year performance.
However, this year was a contrary effect. It was one of the factors which has impacted the bottom line also during the year. For the full year we achieved a turnover of 12,372 crore which is a drop from previous year top line. This year we could not achieve the planned turnover from various projects across domestic as well as overseas. So on an overall basis, if I have to put it in a nutshell, there were payment issues, L1 orders were not converted, some of the fast track projects not picked up and sudden geopolitical issue were the main reason impacting the revenue growth.
Now moving on to the EBITDA, during Q4 we had done absolute number 170 crores of EBITDA which was quite significantly lower than the previous year’s 415crores in terms of percentage. In Q1 it was 6.1% and for the overall year the absolute number of EBITDA was 1439 crore which is 11.7% as compared to last year’s 1662 crores 12.8%. So on a year on year basis it was down by around 13.4%. Now in our EBITDA calculation we consider the BG Commission as part of our operating expenditure. So EBITDA what we are talking about is after removal of BG Commission as the operating expenditure this year because of overall reduction in our interest rate, the finance cost even though has gone up which I’ll talk about in the when I talk about the finance cost.
Also our EBITDA calculation includes other income as part of revenue. Here we have explained earlier also that our other income is very much part of business arbitration, interest, foreign currency exchange gain, miscellaneous incomes are recurring and those are very integral to our business. Hence this needs to be considered as other operating income. So for the year ended a sizable amount of 374 crores which is part of other income needs to be considered as other operating income. Now moving on to profit before tax, for the full year we have done 387 crores of profit before tax which works out to be 3.1% of the top line and this has come down as compared to FY25 wherein we had done 710 crores which was 5.5% in the previous year and in profit after tax for the Q4 we had done there is a loss of 89 crores.
However for the full year the profit after tax is 251 crores which works out to be 2% of the top line wherein in FY25 we had done 487 crore which was 3.7% of the top line. Profits for the quarter got severely impacted because of sizable provisioning in one of the projects and in another project we incurred substantial extra cost on marine operations. Both these are kind of one off event. In addition to this in some projects where we were expecting to cross the margin recognition threshold, usually in all the projects once we receive a threshold of turnover which is around 10% then only we start recognizing profit.
So in few recent projects we could not cross the margin recognition threshold which we were expecting in Q4 we fell short marginally to reach that threshold so margin could not be recognized. In addition to this under recovery of fixed cost because of lower turnover, higher finance cost because of working capital lockup were the components contributing to loss in the quarter for the full year. In addition to the above Factors impacting Q4 profitability, labor code related 1 of exceptional item was another big impact.
Now specific to finance cost increase during the year we have continued to see payment related challenge. We have improved our average borrowing cost in FY26 as compared to FY25 because of our because of the interest rate going down and of course because of improvement in our credit rating as well. But during the year the average borrowing has gone up as compared to previous year. And because of that the overall interest cost has gone up. And this has a manifestation of working capital blockages.
So despite improving the average cost, interest on bank borrowing has gone up. Also the interest bearing advances for the full year FY26, which is around 40% of the overall advances from the customer, which Even though in March 25 was also around say 38, 39%. But then the interest on customer advances were not for the full year that 40% because it gradually moved from say around 20% which in September 24th it moved to around 38, 39% by March 25th. So for the interest bearing advance in last year there was not full year impact.
Whereas this year almost 40% of the overall advances were interest bearing. So that has got a bearing and the interest interest from the customer advances has increased in this financial year because of this interest on customer advances has increased making the overall interest cost go up. We expect the situation to improve on realization of number of locked up assets which we are in a very advanced stage at this point in time in many projects and also on receipts of interest free advancements, mainly in international order.
On the depreciation front, we continue to account for accelerated depreciation on our TBMs. Of the total 454 crores, the normal depreciation was around 289 crores which is 2.33%. So rest of it is on account of accelerated depreciation on tax. The tax rate on expense profit is around 35%. This is on account and this is higher than usually one would expect. So this is on account of some of the JVs where we pay tax in the range of 35 to 36%. Also in some overseas locations like Bangladesh, Gabon tax is charged on turnover.
In such situation, if you don’t make profit above the threshold your taxes, the extra tax needs to be charged off which was the case in places like Gabon and Bangladesh. Beyond this we had to make provision in one of the JV entities which has brought the consolidated profit down making the effective tax rate higher. Now specifically on ROC we have talked about that higher provision in one project due to arbitration development extra cost on a marine operation in one of the project and non recognition in recognition of margin in few projects due to non achievement of turnover threshold and also under recovery of fixed cost due to lower top line.
This all has severely impacted the profitability in turn impacting the ROCE and ROE. In FY26 we have done around 12% ROE and ROE is around 5% which is quite low in terms of debt. Gross debt has remained in the similar range that of September and December and that stands at rupees 3538 crores and net debt is 2653 crores on the net basis. So on net basis the debt to Equity is around 0.49 times of the net worth. This is on the numbers. On behalf of afcon, I thank everyone for attending this. Now I request the moderator to open the floor for Q and A.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from Shravan Shah with Daulat Capital. Please go ahead.
Shravan Shah
Hi sir. Thank you. Sir, you have tried to explain various reasons why the our was one of the worst part in our history but still trying to get some more clarity there. So when we had a call in the third quarter opposed the result in February
Unidentified Participant
11,
Shravan Shah
We were kind of a confident we will be able to do at least 5% revenue growth for the entire full year. That means we would be doing a kind of a 19 20% kind of a growth on the fourth quarter versus now. We have seen a 19% degrowth in the fourth quarter and the fourth full year also 5% kind of a degrowth. So just trying to understand that even at the middle of the quarter we were so confident and what has gone so wrong in terms of and that’s why we missed significantly on the execution front.
Ramesh Kumar Jha
That is correct. But see what usually what we have said see this was based on the last 1520 years experience. What happens that in Q4 we have seen that the customers they release all the payments up to date. This is what our experience has been for quite some time. But this year was an exception wherein we have seen that there was a slowdown in terms of payment and payments were not forthcoming. That has impacted and we had to decide a choice between growth or to preserve the liquidity and then we had not taken that aggressive call to pursue the top line growth.
And then in the midst of that the war started and then that severely impacted the supply chain management. And you are aware that even this year we have done close to 30% from our overseas project. Even though the order book is lower in terms of order book composition domestic versus overseas. But in terms of turnover we continue to do around 30% from the overseas market. And some of the countries where we are operating are, you know, not that bigger economies where they have got higher amount of oil reserves.
So we, the operations got severely impacted in the month of March. So pol related stuff and logistics related stuff so we couldn’t send material to project site and this severely impacted even in domestic market. Also you are aware that many of our projects are at remote locations. So availability of the gas was a real problem.
Shravan Shah
Okay, got it sir. So, so now, now again we are at the middle of this quarter. So first obviously I think, correct me if I’m. I’m wrong. For full year FY27 we are not providing any, any revenue guidance. So if that is the case, then this quarter Q1 till now and looking at the whatever now the whatever the constraint, payment related issues, everything, can we see a growth in the Q1 FY27 this quarter?
Ramesh Kumar Jha
I see this is where what we have conveyed is that at this point in time because of the geopolitical situation, because the condition continues to be the same even in domestic market, we are getting very contradicting signals. We are hearing that the energy prices are going to significantly go up and we have not seen the payment situation improving significantly even though some of the stuck payments. We are, as I said earlier, that we are in a very advanced stage to get those payments. But at the same time those supply chain related issues continues.
So it would not be prudent on our part to give you any guidance as such for the full year or even for the Q1.
Shravan Shah
Okay, got it. So, so same for, for even for margin also the normal long term guidance that we have 11%. So that will also we will right now will not be kind of giving any kind of a guidance on that front.
Ramesh Kumar Jha
We are not saying we are not giving any guidance on the margin front also because we need to see how it actually pans out. Because many overseas places we have seen that the petrol diesel prices have significantly gone up during the war period. In the month of March, April, the prices have gone up. Some of the places like Bangladesh, they were having elections. So till the elections were there the Prices remained stable but after the results the prices had gone up. So we are looking at that kind of situation.
And you are aware that in many overseas locations our prices are fixed price contracts. So we need to see how we are able to recover from the customer these this escalated cost. So we have, we have in past also explained that generally in overseas market we try to keep risk and contingency. But then at the same time we are not very sure to what extent, you know those risk and contingencies will be able to take care of the. Of the escalated cost.
Shravan Shah
Lastly sir, on the inflow front, just to get a number correct. So after the 31st mark how much value of inflow that we have received the loa. Obviously we also know if you can also specify in terms of the L1SO1 what I know is a Croatia which would be a 7800 odd crore and the Vadwan one which is 5300 odd crore. So kind of a 13,000 odd corrode. Kind of if you can specify the number would be better. So we are saying by June we would be getting a 15,000 crore LOA. That is one. And second additionally we will be getting a 15,000 crore more inflow.
So total would be a 30,000 crore for the entire FY27.
Ramesh Kumar Jha
Yes. So you are right. We have already informed to the exchanges that this Croatia order is already. You know we have been selected as the, as a. As the contractor for the project. And besides that you are aware there is, there are news in the, in the, in the social media that couple of projects we have been declared L1 since we have, we are not you know disclosing that to exchanges. We will not be able to give you the exact details. But you are aware you know there are, there are projects where we, we have been.
We have emerged as L1.
Srinivasan Paramasivan
There is also an underground metro of DMRC of 373 crores which we have bagged already.
Ramesh Kumar Jha
So in the year what we’re talking about, you know almost 50% is having a clear visibility in place in the first place.
Shravan Shah
Okay. Okay, got it. And the capex for full year now given the the FR26 I think the TBM cost now will be shifting in the FY27. So how one can look at the FY27 capex.
Ramesh Kumar Jha
So FY27 we are looking at a capex of around 725 crores.
Operator
Okay,
Shravan Shah
That’s it from my side. Thank you.
Ramesh Kumar Jha
Thank you.
Operator
The next question comes from the line of Ankita Shah from Elara Capital, please go ahead.
Ankita Shah
Yeah, hi sir, I’m referring to your last con call that you mentioned that nearly one third of your Q4 target is already achieved in the first 40 days. Most approval on the, on, you know, related to project delays have been resolved. Execution pace to normalize from 4Q and 11% margin looks sustainable. Amid all this commentary that is that you gave, what is it that you did not see coming through which impacted the balance 50 days of project execution and margins? What are the key projects that actually impacted this and you did not see it coming through?
Ramesh Kumar Jha
See 1. Let’s appreciate that Q4 always remains to be a sizable portion in any year. Now in the month of March we had seen a sizable drop because of as explained earlier because of supply chain disruption and energy related challenges. Many places the vendors were asking for advance payment and then only they were committing. And despite giving advance payment, many places it was not available. So that became a major constraint. And as I explained that we have got almost one third which comes from overseas market and some of the countries that are not having those kind of energy reserve that severely impacts and some of the projects even in domestic market got impacted in the month of March.
So this is something which we have not. We were not expecting and also some of the projects where you know, the fast track projects we were expecting because you know the kind of discussion we had because these were all private customers also we were expecting things to ramp up but then it didn’t pick up.
Ankita Shah
So do you mean to say. Okay, can we read it this way that large part of this impact has been on account of your international projects which is large part
Ramesh Kumar Jha
Is because of international project. And as I explained earlier also that the payments see payment has to be something which, which makes things flow. This, this got stuck. This, this has severely contrary constrained us to you know put beyond the point money by.
Ankita Shah
Okay, so how much percentage of impact is on account of domestic projects and you know, export. I’m assuming everything got impacted
Ramesh Kumar Jha
Maybe in, in domestic market if you have to put a number around say 25 or so the projects got impacted.
Ankita Shah
Okay, what give you, you know, I mean given that the situation still remains the same, do you think this issue will continue going forward as well? At least this quarter or next six months. Clarity you might be having given the kind of experience you’ve had over the years. What, what is your read through for you know, in the near term on this?
Ramesh Kumar Jha
This challenge continues to be so and we have not seen a very sizable improvement in overseas market in terms of energy availability. And what we hear you might have also seen media very prominent leaders, world leaders, they have talked about that we are looking at big disruption coming up. So we are also not very sure how to talk anything futuristic at this point in time. But the situation has not drastically changed.
Ankita Shah
Okay.
Ramesh Kumar Jha
That is the reason we are holding on to the guidance because you know, once we see some, some clarity, we will be giving the guidance.
Ankita Shah
Okay sir, can you give me more clarity on your international projects? Where all do you have the projects and what is the nature of the work that you are doing there?
Ramesh Kumar Jha
In Bangladesh we are doing a couple of road projects and we have got a railway project. In Maldives we are doing one bridge connecting project. Besides that, we are doing a couple of water related project In Tanjania, we are doing a project water related project in Benin, in Ivory coast and then there are various country in Africa.
Ankita Shah
Okay, so what. What has been the issue here in these places? I mean if you can give more clarity, is it supply chain related or local level disruption that you saw? No,
Ramesh Kumar Jha
No, no, no. Not I’m unable to
Ankita Shah
Understand there that thing. So
Ramesh Kumar Jha
That usually what happened that in most of these projects the material goes from domestic market India and and. And from. From and from Middle East Dubai. Dubai works as a hub for us. So movement of material became a problem for these, these places. And usually for our project project execution we require a lot of diesel, we require a lot of gas. So availability of this was not there many places we had to give advance and then only they were committing delivery.
Ankita Shah
Okay, okay. So this, this led to increase in the cost and has the work stopped on the side or you’ve continued the work but you’ve not got the payment from the client.
Ramesh Kumar Jha
So. So the one of course you know the cost impact was not that severe. But then because of this the operations could not move in a manner we were expecting.
Ankita Shah
Okay. Okay. Okay sir, I’ll get back in the queue.
Ramesh Kumar Jha
I
Ankita Shah
Have more questions. Yeah, thanks.
Operator
Thank you. The next question comes from the line of Janam Jain from Dam Capital. Please go ahead.
Janam Jain
Thank you for the opportunity. So we have highlighted the delay in the payment from the customer. And so are there any concerns on any specific customer side or are we facing issue from the government or the private private clients?
Ramesh Kumar Jha
The as such we are not saying that there is concern. But what we have seen is in some of the state there was election and because of that there was no decision. The payments were certified by the customer customer, it was sent to the treasury and the payments were not coming. Some of the customers we heard that you know, they were not deciding payments were certified. It was sent to their centralized finance team. And then you know we just heard that we are, we as the payments will be released. It was not released.
It was released actually subsequently in the month of April. So as such we are not saying that we are seeing any concern. And I think you know in past we have talked about judge even mission which continues to be in up. They have taken a stand that wherever people are completing 100% then only they’ll release the payment. This is contrary to the contractual condition but this is how it has been taken up.
Janam Jain
Okay. So basically there was a spillover of receivables from March to this quarter. And we have seen a relief of the payment in this quarter, right? Yes.
Ramesh Kumar Jha
It’s not only limited to quarter. Actually what we are trying to say is that the payments are getting elongated as such. It’s not that you know we. The payments are stuck. The, the. The running bills payments are stuck. But then the in manner it used to come or you know, we were expecting it is not coming in that manner.
Janam Jain
Okay. Okay. And so my second question is like is there any plan to bid internationally on the ME side given that Abu Dhabi has unveiled it. 55 billion worth of dollars of project pipeline.
Unidentified Participant
He’s saying that Abu Dhabi is coming? No,
Srinivasan Paramasivan
No, we are. We are definitely at it. And sooner than later we’ll be. We’ll start bagging projects in the Middle East.
Janam Jain
Okay. And currently would you give any big pipeline number for now for this year.
Hitesh Singh
So yeah sure. Our bid pipeline remains healthy for the next two years which we track. It’s close to 4 lakh crores which we are tracking across segments. And out of that 70% is domestic and 30% is from the overseas market as MD sir just mentioned. And Middle east also looks like a big opportunity once the wall gets settled. So that area also we are looking and there are many large value projects in our pipeline which we are expecting to convert soon. And basis that it gives us a confidence that this year we are giving a guidance of 30,000 crores for the order booking.
Janam Jain
So do we have any bifurcation for this bid pipeline of 4 trillion?
Hitesh Singh
Yeah, I have the bifurcation as well. So out of that 4 lakh crores, around 96,000 crores is from the hydro and underground business which includes our water business as well. Around 90,000 crores is from the marine and industrial. It will be like 50, 50 distribution. Our rail and road business will be around 85,000 crores and remainder around 1.3 lakh crores is from the urban infrastructure business which includes metro underground, elevated and elevated corridor projects as well. So that’s how the distribution looks like.
Janam Jain
Okay, that answers my question. Thank you so much and all the best.
Operator
Thank you. The next question comes from Parve Skazi with Nuvama Group. Please go ahead.
Mudit Bhandari
Hi, good afternoon. Thanks for taking my question. So you mentioned that in Q4 we had a sizable provision in one project. So would be possible to get a quantum of the total provision that we made in Q4 across all projects.
Ramesh Kumar Jha
In Q4 across all projects we have done a provision close to 160 odd crores.
Mudit Bhandari
And what would have been this number for FY26?
Ramesh Kumar Jha
FY25, 26,
Mudit Bhandari
26.
Ramesh Kumar Jha
The number is close to 325 crores. I’ll just explain you. What we have done is, you know, this year we have, in Q4 what we have done is we have made a ECL provisioning matrix. So earlier what we used to do is as per accounting standard, we used to, to look at, you know, some previous periods, what is the write off and basis those averages we used to make provision and then in some specific project where we used to think that you know the there, there could be some challenge, we used to make those specific provision.
But this time around rather than, you know, sticking with that individual assessment or you know, individual basis that you know, we used to make provisional. This time we have made a metrics wherein we have moved from earlier basis, you know, the management judgment provision, we have moved to a metrics wherein basis aging and basis category, we have made a provision metric so it will be automatically provision will be made, you know, all the, all the receivables. And so there was some extra provisioning required because of, you know, we had to, we had to shift to this new metrics system.
There was some extra provisioning required which we have done
Srinivasan Paramasivan
Also we have done in one of the projects where we had an arbitration award where we could be taking a call as to contest or not. We thought it is prudent to provide for it. So we had provided for that. That is also a significant amount. Plus another of the projects where there is a cost increase in terms of our marine spreads and other things which we thought it is. While it could get compensated in due course of time, we thought it’s upfront, we will book the cost and later on as compensation comes, it could be a plus side that time that is how we had asked as per our usual conservative accounting policies.
That’s something we have done up front.
Mudit Bhandari
Sure. So to summarize, I mean if one adds all these which is extra provision due to a new policy or a cost incurred in a marine project or some provision for a potential claim where we have to decide a strategy. I mean what will be the quantum of these one time costs in Tripoli across all these categories put together?
Ramesh Kumar Jha
See I think all this put together the quantum could be around say 260, 65 crores.
Mudit Bhandari
Sure. And second question is what is the CAPEX that we incurred in Q4 and FY26?
Ramesh Kumar Jha
In FY26 we have incurred a CAPEX of 1069 and this number was in December this number was around 370 odd crores. So in Q4 we have done close to 700 crores.
Mudit Bhandari
Got it. I think that’s it from my side. Thanks. And all the rest. Thank you.
Operator
The next question comes from Bhaviksha with Invexa Capital llp. Please go ahead.
Unidentified Participant
Yeah. Hello sir. My first question is regarding the current order book. Can you help me with the split of say the fixed price order book in it and the variable cost order which in it and also in the fixed cost how much of it is going to be impacted say with the margins which may not be at our normal margins. Now
Srinivasan Paramasivan
In terms of our existing order book nearly about 10 to 11% only is currently in the overseas segment. All 13% is overseas segment. All others are domestic segment. As you know, domestic segment we have a pass through mechanism and international segments we don’t have a positive segment. And therefore our impact and most of these projects which we are talking about is on the closing stages. Other than the fresh order which is received in the current quarter. All others are in the final stages of closure.
And therefore we do expect a limited impact in terms of the existing cost, escalation or other things in the new project in the Croatia beyond a particular level it has a pass through mechanism in that contract contract up to 10% additional cost we need to absorb. Beyond that it is a pass through. That’s something which is there in the new contract
Unidentified Participant
You mentioned in Bangladesh, Maldives, Sandani and Benin you executed this quarter what will be the quantum of these? Because you’re saying large impact came from these projects. So what is the quantum of these projects?
Ramesh Kumar Jha
Can you come again?
Unidentified Participant
You told the Mangladesh road rail projects, the Mandus projects, the Tanzania water projects, the Danang project, all of these were slow moving during the quarter. So can you help us with the quantum of these projects
Ramesh Kumar Jha
In the overall order book? The quantum at this point in time the overseas component is around say 13%. But what I have explained, explained earlier also that even though it is around 13% in the overall order book but during the year turnover almost 30% is coming from the overseas market.
Unidentified Participant
Okay, okay. So we are saying we have 32,500 crores of order book. We saying we 15,000 crores of assured inflows and 15,000 crores of inflows. We are going to bag more. That will take me to around 60,000 crores of order book. And even after having a 60,000 crores of order book we are not able to give a revenue guidance for the year. Isn’t that a little misleading or some like.
Srinivasan Paramasivan
No, it’s not misleading at all. Because the infrastructure industry needs some bit of an understanding where the initial few months it goes towards installation, design and other phases. The revenue starts accumulating in the heavy civil infrastructure project by and large from the second year onwards only. And some of the projects what we have currently in our 30,000 crore, 31,000 crore of water book has slightly long gestation projects. Like if you talk about there are four dams which are about five year duration.
There is a high speed railway project which is about 62 months which is now because of the tunnel boring machine getting extended to another 12 to 15 months. Therefore these are long gestation project. Therefore it’s based on the expected order, based on the current order. Giving a guidance especially till uncertainty remains in the geopolitical situation will be inappropriate. And while on the one side there have been talks about this thing, our own increase in petrol diesel is minuscule to, to start with in stages it could get increased.
All these will have to be factored in properly. And even now we find that some places there are non availability of fuel in some of the overseas market, some of the domestic markets in remote places, all these. So those based on all these giving a guidance may not be very appropriate. That’s the reason we felt it’s not appropriate to give a guidance. And
Ramesh Kumar Jha
See we are not saying that we are not giving guidance. What we are saying at this point in time we are just holding on. We just want to see the visibility, how things are panning out. Because see what I am saying is the cost may go up if there is a confirm order. You know, you may have, you may incur some extra cost but the, the continuity continues because of the payment flow. That is where we are seeing that there are certain uncertainties. That’s where we want to see some visibility that you know how things are, things are moving
Hitesh Singh
And also if your customer.
Unidentified Participant
Yeah, yeah.
Hitesh Singh
We are giving a guidance of 30,000 crores. We have to see at what point of time the project comes. If the. Because we also seeing that the project cycle award cycle is getting elongated. So if the project comes in Q2, Q3 accordingly it will impact the revenue. So that is also one of the reasons.
Unidentified Participant
Right. So understood. And so in case of customers are elongating our payments not giving us on time. Do you have any rights to maybe get those payments earlier? Or how are we like negotiating with them currently? Because it will impact our margins for sure.
Ramesh Kumar Jha
That is correct. See usually what happens in construction contract. The. We are not with the. At least with the government customer. We are not negotiating per se. You know, individually the. The contract condition. Because once the tenders are out, the contract conditions are set in that contract. In that. In that project. So basis that everybody bids. And then once whoever gets he has to follow the same contract condition. Now many a times what happens that if. If your. If your payment is getting delayed then you will have provision of charging interest to the customer.
All that is there in the contract. But in practice what happens that the customers if they are not seeing the visibility of releasing payment when they don’t have funds, they will not certify the bills. And being government entity, you know, you don’t want to get into a confrontation kind of a mode with the customer. Because now that is also not advisable. So till now the way we have operated is we have tried to deliver project. We have tried to, you know, in advance. We have tried to solve customers problem.
And this is that goodwill that because of those, you know, performance aspects we were getting our things done. At this point in time we are. We are forecing that there are some challenges related to liquidity. And that is kind of, you know, creating this kind of situation. Otherwise we are not having any, you know, bad experience with these customers. Because our customer selection is quite, you know we are. We are quite focused on our customer selection.
Unidentified Participant
Understood sir. Understood. I wish you the very best for the year. Thank you so much.
Operator
Thank you. Participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions you may rejoin the queue. The next question comes from the line of Sri Narayan Mishra with Baroda BNP Paribas Mutual fund. Please go ahead.
Unidentified Participant
Thanks for the opportunity. So you highlighted that you are delaying execution of few projects because of uncertainty on collections. So if you can highlight, you know what is the order book which is facing this issue of collection. So as to Gauge, you know, how much impact we are facing. And related to that also projects with less than 10% completion. What is the receivable on these projects?
Ramesh Kumar Jha
See, I think you know specifically if we have to talk about project. I think other than UP Jal Jeevan mission project and maybe you know, project in Gabon, we don’t have any specific names to be given. What we are saying is in any project, what we try to do, we have. We have our own internal threshold that you know, this many months of turnover, if it is not realized then we beyond this we are not going to fund and we try to manage the project from the project cash flow. So if the. If the payments are elongated because many a times it happens that they will try to bunch up two, three months bill will be hold up.
So after, after that we try to go slow. We don’t fund from our own pocket. Payment comes. Then we try to manage the project and this is how things are going. And this has got overall impact. What we are trying to say specific project. If we have to talk about. We have already talked about UP Jaljeevan mission project. And we have tried to explain that there contrary to the contract condition, the customer has taken a stand that whoever is completing that the final connection. So it means that you know, one needs to complete hundred percent, you know, those connections and then only they’ll be getting paid.
So wherever we have completed say 60%, 70%, 80%, the contract condition says that progressively the payment needs to be made. But now they have taken this time, that final connection, 100% completion. Then only they’ll release the payment. So in normal course maybe you know, we could have done maybe say anywhere around 60, 70 crores monthly turnover. But then now given the kind of situation we’ll be completing those, you know, wherever we have reached a 90% those kind of. So we’ll try to complete that hundred percent and we’ll get that money.
And from then that money we’ll try to complete the, you know, remaining. Maybe then we maybe look at wherever we have done 80% likewise we’ll go.
Unidentified Participant
So what I understand is then the collection problem is widespread. It’s not limited to certain projects. Right?
Ramesh Kumar Jha
Absolutely.
Unidentified Participant
Okay, okay. And also less than 10% completion projects. What are the receivables there outstanding amount.
Ramesh Kumar Jha
So receivable is not that significant. There, there are, there are receivables maybe say it will be around two months receivable will be there in such project.
Unidentified Participant
Okay, okay. And this last question on the. This interest bearing advances that we are getting that Proportion is increasing. So on the order book level, what percentage of order book will have, you know, interest bearing advances? So I want to have a sense of forward looking that where this number is going to be finally. And on one side we are paying interest on advances to customer, other side customers are delaying our payment. So we are in a kind of a deadlock situation. So I, I don’t, I mean how will you manage this?
It’s a big problem.
Ramesh Kumar Jha
No, I think, see we, we don’t look at project selection in that manner that you know, you. If there is a. We’ll keep maybe say 50% only interest varying advances because this is not how we look at. What we look at is in any project what is the threshold of margin we are looking at? And generally, you know these projects we are talking about, we are saying interest is for sure but then in these projects we have better margin. Unfortunately we are at a time wherein we have not crossed the threshold wherein we recognize the margin in the product and on the contrary we are paying the interest so that you know, it is getting reflected.
But then I think once the top line kind of, you know, elevates we will not have this kind of a situation.
Unidentified Participant
But, but where this number will go because. I’m sorry to interrupt.
Operator
SRI Ryan, I would request you to rejoin the
Unidentified Participant
Question on the same question. Yeah, yeah, go ahead. So I understand that you don’t look at this while bidding for orders but your ROCs and ROEs will get impacted, right. If you have higher interest bearing advances as a percentage of your order book. So how confident are you, you know, on achieving the guided ROC and roes? If you know the project that
Ramesh Kumar Jha
Will impact, that will certainly impact the roe. But you know you are getting the money so from the customer so your capital employed is not there and roc, I think you know that the interest expenditures comes below that. So that will not impact the roc.
Unidentified Participant
Okay, so. So anyways ask a follow up question.
Ramesh Kumar Jha
I think you know, just to add, just to add, you know, further to that. We have said that the generally our order book from overseas market has always been say around 30% or 1/3 of the order book which is down at the moment. But I think hopefully we’ll reach that stage and then you know we, we’ll have. Because overseas is interest free and that can significantly improve the situation.
Unidentified Participant
Okay. But I would still appreciate if you can give in terms of segment or order book what is this number that will give a forward looking from your setups.
Operator
Thank you. The next question comes from the line of Sriram Kapoor with Jeffries Group. Please go ahead.
Sriram Kapoor
Hi sir, thanks for the opportunity. Just had a question on your, you know, your order flow visibility. So the 30,000 crores that you are guiding for, for this year, what gives you that confidence on, you know, that balance, 15,000 crores that you mentioned, you said visibility is in place for about 50% of this, the balance 50%. What gives you visibility on this? Is it going to be more on the international side or domestic side? Which areas are these projects coming up in? Is the bidding already opened or is this more sort of, if you could give some more color on that balance 50%.
Srinivasan Paramasivan
Balance 50% consists of both domestic and international. And in terms of certain international projects we are already in the stages of negotiation and closure. So therefore we do expect things to happen quicker. And in domestic projects also we have number of bids already submitted and there are few more bids in the pipeline. Therefore we would say there is a definitive visibility in terms of balance 15,000 crore order book as well. We will not be surprised. Some more of this will come in the current quarter itself, which we are keeping our fingers crossed.
Hitesh Singh
And you know, it is across segments we have good visibility in marine, in urban infrastructure, in hydro and certain projects in surface transport as well. So visibility is also across the various segments we operate in.
Sriram Kapoor
Understood. So and just secondly, on your working capital, right. So of course we’ve, you know, had a lot of discussion on the payments getting delayed and we’ve seen, you know, consequently rise in your receivable days this year. But are you seeing, you know, any, you know, how are you seeing this panning out in FY27 in terms of your receivable days? It’s gone up, you know, more than 300 maybe in the next 12 months. You cannot give any guidance but overall, you know, a sense of target number that you’re looking for for FY27 in terms of your receivable and overall working capital days.
Ramesh Kumar Jha
See in terms of receivable days, I have just now during the call I have said that on quite a few big chunk money which is stuck and on this we are working with various customers and we are at a very advanced day so before June, we are looking at a sizable amount getting. So that will give us some improvement in terms of the number we are looking at because at the moment this networking capital number of around 143 days. And in last call we had talked about that, we are looking at somewhere around say 120 odd days.
So with this, and to be very honest with you, these monies we were looking at getting monetized before March. That’s what we were discussing. But it didn’t happen. But hopefully before June this is going to happen because now we are on the verge of, you know, closing many of this. We know that some of the payments has already gone and they, they are releasing the payments. So still, you know, I’m just taking another say 40 days or so. It will definitely going to happen. So with that happening we’ll go back to around 120 days and then from there on there are number of stuck payment and we are not going as I have told that in projects we are not overexposing ourselves.
So I think, you know, bare minimum we can look at 120 days. And from there, from there on we need to see improvement. But I don’t want to commit at this point in time because we are hearing, you know, very contrary news about payment. And also we need to see how it actually works out.
Sriram Kapoor
Got it, sir. And if you could just comment on the Maharashtra L1 tenders. Is there any update on that? You know they’re going on for rebidding. So any comment on those Maharashtra tenders which you were L1 in earlier. Any update on that
Srinivasan Paramasivan
Earlier L1, both the Pune Ring Road and Nagpur Gundiya both are going for rebid which we had communicated in the earlier quarter itself. It is likely to go for rebid now. They have informally advised us and also asked us to collect the EMD guarantees and all back. Both of these are going for rebid. Therefore we have removed it from the rail one stage status also those jobs.
Sriram Kapoor
Okay so but no visibility on when the timelines of the rebidding process. Right. You know when it might come up and what are your, you know, how’s the competitive intensity in those projects going ahead?
Srinivasan Paramasivan
We expect Pune Ring Road could come for bidding in the current quarter itself towards June or so. Regarding because Pune Ring Road, the land acquisition is almost completed with respect to Nagpur Gondi, I think visibility will come once they do the land acquisition fully. So Pune Ring Road could come up for a bidding shortly.
Sriram Kapoor
Got it sir. Thank you so much. All the best.
Srinivasan Paramasivan
Thank you.
Operator
The next question comes from the line of Modit Bhandari with IIFL Capital. Please go ahead.
Mudit Bhandari
Hi sir. I just wanted to get a more sense of when we say we have 79% of our order book from government and majority of our current issues are coming from this side. So I know you don’t provide any specific bifurcation but any range where you can give how much it is from central government or any specific states. Like you mentioned one of them as up or any PSUs
Shravan Shah
Where it is a many settings.
Hitesh Singh
It’s of a pending order book. Close to 50% is from state government. I mean around 80% is from government side. And out of that 50% is state government and 50% is from the central government. That is how the breakup is. And out of state governments we have projects in Maharashtra, Uttarakhand, Madhya Pradesh, Rajasthan, up, Bihar. So across multiple stage states we have exposure for enough pending order book. And with regards to stuck payment, the main. As our CFO already explained, it’s from the Jivan Rest everywhere there are certain liquidity concerns but not anything specific to be highlighted or pointed out.
Shravan Shah
Okay. Understood sir. Thank you so much.
Operator
Thank you. The next question comes from the line of Bala Subramaniam with Arihant Capital. Please go ahead.
Unidentified Participant
Good afternoon sir. Thank you so much for the opportunity. Metro or TTA JV. That 659 crore in variation due to unforeseen geological conditions. Could you please explain what it is exactly? And geological conditions were indeed fulfilled based on the initial. I’m just trying to understand how we look at whether it will come as a provision or is there any possibilities to shorten.
Ramesh Kumar Jha
See in it would be project specific. You know, we would not like to discuss here. But you know, since you have raised this point in the. I’m not talking about specific about. About that project. But generally what happens that in any contract if there is a. If there is a contract clause which allows variation accounting and we have incurred any variation as per the instruction of the customer then we account for those variations in normal. In normal course what happens that the customer, customers many a times they will settle the amount for those variations across.
But in some cases it so happens that we are not reaching any. Any agreement with the customer on the. On the settlement amount. And in such cases what we do, irrespective of, you know, whatever we may claim in our books we account for revenue only to the extent of cost we are incurring. So that is, you know, mere reimbursement we are looking at. And that is the amount which is getting reflected, you know, the specific project you have talked about.
Operator
The next question comes from the line of Bhavin Modi with Anandrati Group. Please go ahead.
Balasubramanian
Thank you for the opportunity. So my first question is I understand that you know we are now doing the work, you know in proportion to the payment that we are receiving. So can we see, you know, debt levels, you know, to go down from here on. We are already, you know, at the pre IPO level debt of 35 billion. So how should we look at the debt movement going forward?
Ramesh Kumar Jha
See what happens that generally we have seen that in Q1, Q2 the debts go up. And I mean even though we have set this, you know, that from the project only we’ll be funding, but not all the time, you know, all the expenditure will be, you know, funded through the project collection, main operations. Yes, but then many a times we need to pay salaries, we need to pay rent and those kind of stuffs. We know we are not hell bent. So there could be some marginal debt number going up and down, that is for sure.
But one thing for sure, we can tell you that for this financial year FY27, we’ll see a sizable drop in the debt number. And that’s what you know, we have stated earlier also that debt, we have always tried to maintain it at a level which is comfortable to us and comfortable to our stakeholders. And this time it is not that, you know, this is an alarming number on a gross debt basis. Also our debt to Equity is around 0.65 on net debt basis is below 0.5 which is, I know, according to me it’s quite comfortable situation.
But having said that, we’ll bring it down to you know, a level what we were there say in FY25 or so.
Balasubramanian
Okay. And the second question sir, again relating to this, like obviously you know, our net debt to equities are comfortable of 0.5x but last two years, you know, sir, our cash flow from operations are negative and we were actually paying the interest cost by taking the more debt, which is a vicious cycle. So what gives us the confidence that the net debt or the debt levels will go down?
Ramesh Kumar Jha
See, it’s a call, it’s a calibrated call. And maybe those kind of concern can arise when your debts are at an alarming level. And in past we have operated at a debt equity of more than say around 1.3, 1.4 at the moment, even on a gross debt basis we are at around 0.65. So it’s not that alarming level. And we are at a very comfortable situation. We have got a sizable cash and bank balances, we have got sizable undrawn bank limits available with us and we have got very sizable advances which we can draw at any point in time.
So I don’t think, you know, we are at that kind of a situation. And in terms of finance cost and all, you know, what we had planned for the year. We are maybe, you know, marginally we are higher, but it’s not that, you know, it is, it is out of blue, you know, we are incurring some more cost and on account of borrowing.
Balasubramanian
Okay, got it. Thank you.
Operator
Thank you, ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Srinivasan Paramasivan
No,
Ramesh Kumar Jha
We can take more questions, Continue and close it.
Operator
Okay? Okay, sure. So the next question comes from the line of Avnish Tiwari from Wakariya Fund. Please go ahead.
Unidentified Participant
Hi, can you explain this cost inflation pass through in the domestic projects and the delayed payment when you’re experiencing. Do you think there could be a risk to the passing inflation through in these domestic projects?
Srinivasan Paramasivan
Most of our, all our domestic projects has an, an escalation formula. The formula could vary from customer to customer, but it has got an escalation formula consisting of steel, cement, labor, fuel, other factors and all that. And based on that, whatever is the increases on, in some cases it is fully covered. Some cases it is 90% covered. Some cases it’s more than 100% covered. So that’s a formula. Therefore generally any kind of increase in the domestic contract, there have been no issues in terms of cost increases except in sometimes when there is an abnormal increase like happened in 2004, 5 there was a suddenly an abnormal increase in the price of steel from that of 17,000, it went up to 65,000 over a period of one year.
So. So unless that such kind of situation, normally it is manageable within the escalation formula. Internationally, most of the contracts are fixed price contracts, barring some exceptions here and there. And for international price we have a well developed escalation formula. Normal price increases gets absorbed over through that formula which we put internally in the pricing itself. We do that in Croatia, which is our biggest contract to date is something where up to 10% of cost increase we need to absorb.
Beyond that it has a pass through. So therefore everywhere we are properly provided for, we will see comparatively limited impact.
Operator
Does that answer your question, Avnish?
Unidentified Participant
Yeah, the second question I have was on this labor minimum wage increases, we are seeing some protests. We are seeing in Northern state. Are you experiencing the cost increase as well as some degree of shortage or protest in any of your sites in India?
Ramesh Kumar Jha
So we are not seeing that kind of situation. We have, you know, whatever minimum wages and labor code related increases. We have already factored all that. So we are going ahead, you know, as per the revised code
Hitesh Singh
And avish labor issues are across the board. So that availability we are trying to manage how it can be managed. But yeah there is an availability issue of the labor part but not protest, nothing like that.
Unidentified Participant
Okay, great. Thank you.
Operator
Thank you. The next question comes from Shravan Shah with Daulat Capital. Please go ahead.
Shravan Shah
Thank you for the opportunity. Sir, you said that we have bidded for couple of projects where bid is yet to open. If you can specify what’s the number and also how much is in India outside India
Srinivasan Paramasivan
It will not be appropriate for me to mention the bidding values, amounts and other thing more or less we would say that we are reasonably confident of achieving this 30,000 crore order book guidance and in terms of domestic international spread it could be roughly about 40, 60 or so domestically be around 60, international will be around 40. Depending on which order we get it could get shifted also in terms of percentage.
Shravan Shah
Got it sir. Now just to clarify the capex number that we have say 1069 crore the cash flow that is lower. So obviously the cash outflow will be happening or may would have happened in the Q1 FY27. So when that the depreciation the capital W I hope mostly it would be related to the TBM. So how one can look at this 100 crore quarterly depreciation that we have seen in Q4 a broader, broader sense how one can look at how it can reach up for FY20.
Ramesh Kumar Jha
Yeah. FY27 it will be the similar number. Maybe you know marginally it will be up from. Because you know you. You yourself have said that you know these capex whatever TBM we have added thousand odd crore. So that is going to get added in the graph block. And so accordingly you know there will be some incremental depreciation but it will be line with FY26 and plus some increase towards all these additions.
Shravan Shah
Okay and sir is it possible to break it down the other income for 26374 odd crore the way we we give in the annual report. So two heads that I’m. I’m trying to look at. So one is obviously the interest income that is one is obviously the arbitration one and the other one is the other interest. And the what would be the balance to balance I can minus it. But these two numbers if you have for FY26 what would be the interest on arbitration awards and what’s the other interest in other income?
Ramesh Kumar Jha
So that is the interest on our arbitration interest is 19 crore. Another interest is 61 crores.
Shravan Shah
Okay. So put together only, only 80 crore is is the interest part is there out of 374 all crore?
Unidentified Participant
Yes.
Shravan Shah
Okay. Okay. Okay. Yeah. And then just a one more thing in terms of when we mentioned in previous answer that 260. 265 crore is kind of a one off provision that was there in the fourth queue in till now in Q1. Any. Any. Any broad sense that how much? Because this the way we consider arbitration as a normal part of our business. This provision one should be considering as. As a normal part of business and not kind of a one off. So depends how one can look at. But just trying to see until now have we.
Have we kind of done any. Any kind of provision in Q1 till now or all likely to be there?
Ramesh Kumar Jha
No.
Shravan Shah
Okay. Okay. Okay.
Mudit Bhandari
Got
Shravan Shah
It sir. Thank you.
Unidentified Participant
Thank you.
Operator
The next question comes from the line of Sri Naray and Mishra with Baroda BNP Paribas mutual fund. Please go ahead.
Unidentified Participant
Thanks for the follow up. Sir, I wanted to know on the Croatia order that road projects got cancelled due to budget constraints. So for the railway projects do you feel there might be collection issues going forward Or I mean how do you see that
Srinivasan Paramasivan
ECB has already approved the entire amount and funds are already there with them. Therefore we don’t find any issues even with respect to road projects also there is an ECB approval for the funding up to a value. Because there were a series of tenders not these two tenders alone. There were other tenders as well as all were higher between 20% to 40, 45%. They decided they will cancel the tender and revise the estimate, get the approval from ECB and then go for fresh bid. That is the reason it got
Unidentified Participant
This one has
Srinivasan Paramasivan
Already been approved with ECB and all the others.
Unidentified Participant
And sir, in terms of L1 orders, do you feel any other orders are also at risk of cancellation? No. Okay.
Operator
Thank you. The next question comes from the line of Ankita Shah with LR Capital. Please go ahead.
Ankita Shah
Sir, just to follow up on inflow side. Given the pipeline of projects that you have and the L1 position pending as of late, what is the visibility on inflows for 27
Srinivasan Paramasivan
Order? You mean order inflow,
Ankita Shah
New order inflow. Yes,
Srinivasan Paramasivan
New order inflow. We have indicated 30,000 crores out of which we have already received 8,000 crores and another about 7,000 crores. We are L1 and further 15,000 crores total 30,000 crore is the guidance for the year. Okay.
Ankita Shah
Okay. And largely these will be orders in India or are you looking at other geographies also for the same
Srinivasan Paramasivan
It will be a mix of both
Ankita Shah
Equal split.
Srinivasan Paramasivan
Roughly about 60% domestic, 40% international for the balance of the orders.
Ankita Shah
Got it. And international will be similar geographies. Area present currently or you’re exploring new areas.
Srinivasan Paramasivan
No, mostly it will be similar geographies.
Ankita Shah
Okay, okay. And in this Middle east rebuilding or reconstruction activity that could be there. In your assessment how big could be that opportunity?
Srinivasan Paramasivan
Already Abu Dhabi has expressed a $55 billion and similarly other opportunities could come up. Bahrain is quite deeply impacted. So at this point it is too premature because even in terms of timeline of reconstruction also we need to see from the second of the only it could start. So therefore today we are not factored in the reconstruction part of it in our assessment.
Ankita Shah
Okay? Okay, sir. Yeah, sure. That’s it for myself. Thank you. And all the best.
Srinivasan Paramasivan
Thank you.
Operator
The next question comes from the line of Sriram Kapoor with Jeffrey’s group. Please go ahead.
Sriram Kapoor
Hi sir. Thanks for the follow up opportunity that just to clarify the rupees 8000 crore orders that you have that you mentioned these are already confirmed orders that would be you know a part of your order book. And if you could you know give some color on which orders these are because. Yeah, just if you could explain. Yeah, sure.
Hitesh Singh
Out of those 8,000 crores confirmed. 373 crores is already part of our order book. Croatia we have not taken in our order book yet.
Sriram Kapoor
Okay, so just 373
Srinivasan Paramasivan
Crores of DMRC and 7544 of crochet are the orders in that 8000.
Hitesh Singh
Yeah, but in our pending order book we have not taken the pending order book of 31st March.
Srinivasan Paramasivan
We have done. These are first quarter,
Sriram Kapoor
Right sir. So then, so this would be your 8,000. And you know you mentioned that you’ve clear visibility in place of 50% of the 30,000 crore audit book. So
Srinivasan Paramasivan
Another two orders. We are only L1. Where is the public knowledge? And it’s around 5,300 odd crores. There’s one more job where we are L1 which is the rest of the amount.
Sriram Kapoor
So that’ll be the balance that makes up that we about 1700 crores to make up the total 15,000 that you’re talking about. Okay. Okay, understood. Thank you.
Operator
The next question comes from the line of Abhinav with ICICI securities. Please go ahead.
Unidentified Participant
Yeah, so thanks for the opportunity. Just one question. You mentioned about the Pune ring road coming up in Q1. What could be the opportunity size over there?
Srinivasan Paramasivan
Most likely it could be they’re awaiting the Cabinet approval. It could be around a similar size. Whatever they have made earlier, what they are trying to do this time is instead of going a basic number and then go for above the estimate and all they updated the estimates and calling for the bid.
Unidentified Participant
Thank you.
Srinivasan Paramasivan
Thank you.
Operator
The next call come. The next question comes from the line of Siddharth Surin with first Ran India. Please go ahead.
Mudit Bhandari
Thanks for the opportunity. So, two questions. One is on there is this invocation of Lombard guarantee which you had mentioned as one of the note items. Just wanted to understand if there is any impact on the earnings for the quarter on account of that. So that is one. And second is on the buildup of contract assets. So the company as in you had earlier guided that there would be a liquidation with the which we can see on build up of these contract assets as the billing would be certified and so on.
But basically the government understand that that is taking some time. So can you still give us some guidance as to when we can see the liquidation of the short term contract assets in. In the future?
Ramesh Kumar Jha
Yeah. So on your first question, Gabon. So Gabon we have already paid that the bank guarantee invocation and in that contract anyways we were not recognizing any margin and whatever was to be provided, we have already provided for the expenses. And as we have communicated earlier, we have close to 92% or so we had completed the project. So since the contract at the moment we are not recognizing anything as such thereafter. Now coming to your second question of liquidation of you know, some of the contract assets.
As I explained that some of the receivables we were in the. In the march itself we were looking at liquidation and it. It could not go through. We are looking at those liquidation maybe say by June we should see a sizable liquidation in the range of say thousand odd crore. So with that we will see that getting realized. And also we can look at reduction in number of working capital days which we are looking at elevated number of 143.
Balasubramanian
Thank you.
Ramesh Kumar Jha
Thank you.
Operator
The next question comes from the line of Avnish Tiwari with Wakariya fund. Please go ahead.
Unidentified Participant
Hi, this quick follow up these delayed payments you experienced in government project. Did we also experience the same in private side in India?
Ramesh Kumar Jha
Private side we have not seen that.
Unidentified Participant
And the government side is mostly state versus center. So all across the board
Ramesh Kumar Jha
It is. I think it is across the board.
Unidentified Participant
Thank you very much.
Ramesh Kumar Jha
Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Srinivasan Paramasivan
Thank you very much. All the analysts, investors, and our friends from the industry. And we look forward to an exciting period ahead. Stay invested. Thank you.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of DAM Capital Advisors, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.
Unidentified Participant
Thank you.