Ahluwalia Contracts Limited (NSE: AHLUCONT) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Shobhit Uppal — Deputy Managing Director
Vikas Ahluwalia — Whole-Time Director
Satbeer Singh — Chief Financial Officer
Analysts:
Unidentified Participant
Shravan Shah — Analyst
Lakshmi Narayana — Analyst
Vaibhav Shah — Analyst
Samyak Jain — Analyst
Vasudev Ganatra — Analyst
Vishal Periwal — Analyst
Presentation:
operator
Foreign.
operator
Ladies and gentlemen, good day and welcome to the Aluwalia Contracts India Limited Q4FY25 earnings conference call hosted by Ambit Capital Private Limited. As a reminder, all participant lines will be 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 the conference call, please signal an operator by pressing Stars and zero on your touchtone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sameer Thakur. Thank you. And over to you, sir.
Unidentified Speaker
Good evening. On behalf of Ambed Capital, I thank the management of Alu aliyah contracts India Limited for the opportunity to host your Q4FY25 earnings call. We have the following members of management with us today. Mr. Shobhit Uppal, Deputy Managing Director, Mr. Vikas Ahluwalia, Director and Mr. Sadbir Singh, Chief Financial Officer. I now hand over the call to the management, Mr. Shobit Uppal, Deputy Managing Director to walk us through the quarter. Thank you all. And over to you, sir.
Shobhit Uppal — Deputy Managing Director
Thank you so much. Good evening everybody. Aluvaliya Contracts India Limited has announced its financial results for Q4FY25. During Q4FY25, the company has achieved a turnover of 1215.84 crore and a PAT of 83.16 crores in comparison to a turnover of 1163.66 crores and PAT excluding exceptional items of rupees 54.91 crores. During Q4FY24, the company has registered a growth of 4.48% in turnover and 51.44% in PAT, excluding exceptional items during Q4FY25 in comparison to Q4FY24. EPS of the company for Q4FY25 is Rs. 12.41 as compared to the EPS of Rs. 8.20 excluding exceptional items in Q4FY24. During Q4FY25, the company’s EBITDA margin is 10.17% as compared to 8.96% in Q4FY24 and a PAT margin of 6.74% as compared to PAT margin excluding exceptional items of 4.67% in Q4FY24.
During FY25, the company has achieved a turnover of Rs. 4098.62 crore and a PAT of Rs. 201.51 crore in comparison to a turnover of 3855.2.9 crores and a PAT excluding exceptional items of 230 0.61 crores during FY24. During FY25, EPS of the company is Rs. 30.08 as compared to an EPS of rupees 34.42 excluding exceptional items in FY24. During FY25 the company’s EBITDA margin is 8.34% as compared to 10.08% and the PAT margin is 4.85% as compared to 5.93% in FY24. The net order book of the company as on 31st March 2025 is rupees 15775.08 crores.
To be executed over the next two to two and a half years. Total order inflow during FY25 stood at 8436.69 crores. And the order inflow during FY26 thus far is 396.50 crores. Sorry, this order inflow is till 31st March. At present we are L1 in two projects aggregating 1796 crore. Thank you. We are ready to take questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star in one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two 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 is from the line of Shravan Shah from Daulat Capital. Please proceed.
Shravan Shah
Thank you, sir. And a couple of questions. So sir, first on the execution front. So now how one can look at the execution growth for this year FY26. And also if you can specify this 1796 crore L1 orders which are this and how much order inflow are we looking at for the entire year of FY26?
Shobhit Uppal
Hi Sravan. Your second question first. 1796. These are two orders. One is a university in Bhubaneswar, Odisha with the state government. This is about 1000 crores. And the other is the MIDC project in Mumbai which is about 700 odd crores. As regards your third question, the targeted order inflow should be on the similar lines about 7,000 to 8,000 crores in this financial year. As regards the revenue guidance, about 15%. I have answered your question. Anything else?
Shravan Shah
Yeah, sir. In terms of the EBITDA margin. So this Quarter definitely we have done 10% plus how one can now look at for.
Satbeer Singh
As I said in my last con call, you know slow moving orders are behind us. Almost all projects have taken off and we have a healthy order book. So there will be a double digit margin in this financial year.
Shravan Shah
Okay got it. And also a couple of data points. First mobilization advance, retention money and unbilled revenue.
Shobhit Uppal
Yes. Mobilization advance is 639 crore and retention is 387cr and debtors are 812 crore unbilled revenue. 390 crores. 390 crore unbilled revenue.
Shravan Shah
Yes, yes. Yes. Okay. And capex for FY26 is about 200 crores. Okay. Okay. So any specific projects where we are likely to see a higher capex and that’s why we are seeing a 200 or crore.
Shobhit Uppal
So we’ve signed recently a lot of orders for high rise buildings. So there is you know this aluminium or specialized system shuttering that will involve a capex and plus there’s going to be a large capex of on the projects these such high rises like the ones we’ve signed for dlf the specialized machinery like cranes are going to be deployed. That is why a higher capex in this year also we’ve done a capex about 190 crore so it will be on similar lines.
Shravan Shah
Lastly the jams and Jewelry park and the CSTM railway station. So last time we said we are looking close to 5 in FY26 so and particularly the Jensen Jewellery where have we started work and how one can look at the revenue in FY26.
Shobhit Uppal
No in CSMT we are looking at a target of about 400 to 500 crores in this year. As far as German Jewelry park is concerned we are still awaiting clearances from the department to break ground.
Shravan Shah
So when it will start?
Shobhit Uppal
We are still not clear. Probably it will be in. In Q3 FY26.
Shravan Shah
Then the revenue should be on the lower side and despite that. So if I remove this then we have to do a significant uptake in terms of execution for other projects to to reach a 15% kind of a.
Shobhit Uppal
Growth as it is in our projection of revenue we have taken just about 150 crores from German Jewelry park which if it even if it begins in Q3 in H2 we should be able to meet that.
Shravan Shah
Okay. Okay. Thank you and all the best sir.
Shobhit Uppal
Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Jain. Of Jain from ICICI Securities. Please proceed.
Unidentified Participant
Thank you for the Opportunity. So my first question is on the update. Is there any update on Delhi NGT issues?
Shobhit Uppal
No, there is no specific update. But we are hoping that, you know, with the same ruling party, both at the state and the center this time the pain should be considerably lesser. More so because the government, state government has already started taking steps to curb pollution. So we are hoping that last, like last, unlike last year when we lost approximately two to three months, two months in Q3 and nearly a month in Q4 of FY25, this year the pain will be considerably lesser. So the impact on our production should be much lesser.
Unidentified Participant
Okay sir, answer. My second question is what is sort of bid pipeline which we are seeing in FY26? Like are there any major opportunity in terms of projects? It is sort of going to help us in increasing, increasing a backlog.
Shobhit Uppal
So the bid profile and pipeline is similar to what it was in the second half of last year. We are seeing substantial growth in projects, residential projects, high rise residential projects in various parts of the country, especially metros, even in tier 2 cities like say Bhubaneswar, Patna, etc. So that is one area. Secondly, airports is another area for us. And then housing also on the government side and educational projects both on the government side and the private sector side.
Unidentified Participant
Okay sir. And so my last question is despite having a strong book to build ratio of 3.8x like we are still looking at a revenue growth of 15%. So what is stopping, actually stopping us from achieving a higher number on that? At that end.
Shobhit Uppal
Two things. One, we are being cautious as we always are. Primarily because labor is an issue. And it’s just becoming more and more of an issue. Especially in and around the festive seasons which traditionally is the best construction period. But our experience over the last couple of years is that labor goes back home. It depletes. Then a lot of this labor, especially skilled workforce comes from the hour which is going to. The state is going to go for election in the month of October. So that will impact project performance across the country. Because all skilled, most of the skilled workforce comes from VR.
Unidentified Participant
Okay sir, that answers your question. Thank you so much and all the.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Lakshmi Nara and KG from Tunga Investments. Please proceed.
Lakshmi Narayana
Yeah, I have a few questions.
operator
First is Mr. Lakshmi Narayan, would you please visit your device while asking a question?
Unidentified Participant
Hello.
Shobhit Uppal
Yeah, you’re much better now. Yes.
Lakshmi Narayana
Two questions. See, one is if I just look at the current assets, the trade receivables have increased from 604 crores in FY23 to almost 784 crores in FY25. So when you classify these trade receivables as current assets two questions. Why there has been a quantum jump in that and then over what period these receivables can be got? Like what is the policy the company has on current. Under current assets trade receivables.
Shobhit Uppal
I think. Debtors are 785 crores and current assets. In comparison to 31st March 24th this was 746 crore. I don’t. So there is a quantum job.
Lakshmi Narayana
No, no. I’m just comparing from FY23 for 604 crores to almost 784 crores in the last two years. So is it in line with your expectations?
Shobhit Uppal
Yeah, yeah it is. What Satbir is saying that if you see FY24 and FY25. Yes, exactly. It is almost similar. 740 to 784.
Unidentified Speaker
785.
Shobhit Uppal
Right. And there has been a corresponding jump in turnover also. So it is in line with our expectations.
Lakshmi Narayana
And the second question is that what percentage of our order book excluding the CST’s item rate and how much is EPC?
Shobhit Uppal
We will before the end of this call we’ll get back to you. We don’t have that as a ready number. Right. If we exclude csmt what is the eapc? So to give you an accurate answer give us some time before the end of this call. We’ll get back to you.
Lakshmi Narayana
And the third question is that what percentage of. You know when I see that around 180 crores of CSS empty has been. Work has been done and in your own I think you had mentioned that there has been a delay due to various agencies issues. Now when do you think this project will get over? Because we are already having a delay. So just want to hear your thoughts on that.
Shobhit Uppal
So as I mentioned in my answer to I think Shravan’s question we are looking at doing an output about 400 to 500 crores this year. This financial year. So the total value is around 2000 crores. So I think totally it will take anywhere between two to two and a half years to complete this. So maybe FY28 or 29 it would. End I think FY or yeah, if you take two years from now it’s yeah. 28. 28. 28. FY28.
Lakshmi Narayana
Got it. And still pertaining to the same project since it’s a EPC project and what kind of cost escalations you have actually built in because it’s an L2 project and L1 project. Just want to understand how we have ring fence risk in terms of delays and in terms of cost overruns. What kind of mitigation we have done there.
Shobhit Uppal
So we’ve, you know our investments on the project in terms of machinery and other significant resources has already been done. Secondly, we have like say significant raw materials like stone chips and sand. We’ve bought a quarry which we are using to feed this and other projects in Mumbai. Thirdly, we’ve set up our own fabrication units near the execution site which are helping us control the expenses. Not only the timeline, timely delivery but also expenses. So we’ve put in place a slew of measures which will help us mitigate most of the escalations. Rest we factored in our projections.
Lakshmi Narayana
Got it. Thank you for the clarity. I’ll get back in queue and I’ll wait for your number.
Shobhit Uppal
Yeah. Thank you Lakshmi. Thank you.
operator
Thank you. The next question is from the line of Bhai Bhav Shah from JM Financial. Please proceed.
Vaibhav Shah
So firstly on the CSMT project. So over the last time we had guided for 750 crores of revenue for FY26. So what is stopping us from that achieving that number for this year. And. And are the design issues back now and design is clear now or still there are some lingering issues.
Shobhit Uppal
Most of the design issues have been resolved. But you know in a project as complex as this, as I mentioned last time, you know it’s very difficult to get all issues resolved. More so when the. When the nodal agency RLDA is, is also a comparatively new agency unlike the CPWDs and the NBCC’s of this world. That is why while the construction has begun in right earnest on the ground but there continue to be issues. This is a large project which not only involves structure but it also involves finishing items. While structural issues have been to a large extent concluded.
But a lot of finishing items or design issues still remain. So we are working on that. Secondly, work or productivity on the ground or production on the ground is dependent on as and when closures or block closures are given to us this year substantially. We are looking to work on the greenfield aspect of the project where new buildings are coming up. Whereas the stations and concourses that will be taken up in the latter half of this year and majority of that will be done in the next financial year. Hence a bit of a downward trend on the, on the.
On the revenue guidance that we are giving on this project for this financial year. So as far as this number is concerned, 400 to 500 crores, that should be largely secured now or still there is some risk to that number as well for FY26. So that’s largely secured.
Vaibhav Shah
Okay. So secondly on the margins front, so we saw good margin in Q4 at around 10.2%. So what drove that margin in one offs or what drove that.
Shobhit Uppal
No, no. If you recollect during my last con call I had mentioned that you know most of the slow moving projects were behind us. NGT was behind us and we signed the fresh order at decent margin. So. And I had projected that we would be henceforth looking at double digit margins. And this should continue through this year.
Vaibhav Shah
Okay. Okay. So secondly, on the medical college at Chopra. So has there been any change in scope? Because it was earlier I think order book was zero. And now it’s around 160 odd crores.
Shobhit Uppal
Sorry, repeat your question.
Vaibhav Shah
You’re saying Medical college Chopra in Bihar. Earlier the order book was zero and now there is a 160crore order book as per the presentation. So has there been any change in scope? And also the value of the order has increased. Earlier it was around 450, 470 odd crores. Now it is 600 plus crores.
Shobhit Uppal
So there were, you know there were certain government approvals awaited. There were extra works which were. Which were being added. So that came during the last quarter. That’s why this size of this order has gone up. And that should be completed in this year. FY26. It will be completed in the next six months.
Vaibhav Shah
Okay. So lastly on the working capital side. So any issues in particular state or any authority where payments are being stuck or have been delayed?
Shobhit Uppal
No, not to. Not to my knowledge. No.
Vaibhav Shah
Okay.
Shobhit Uppal
Two states were worrying us which was West Bengal and Bihar. Bihar. The issues were cleared last time around. I’d mentioned that. And West Bengal also. At the moment we’re executing no government projects. Our projects have been completed and most of our payments have been received.
Vaibhav Shah
So one capital should be a similar number in FY26 as well.
Shobhit Uppal
You said 88 days.
Vaibhav Shah
Ahead also it will be similar but. Right.
Vaibhav Shah
That’s similar. And so lastly of the mobilization advance you mentioned what would be the interest bearing portion? Just 40%.
Vaibhav Shah
Okay. Okay. Thank you sir. I’ll fall back in the queue.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Rohi Gauri Saria from Credent family office. Please proceed.
Unidentified Participant
Hello. Am I audible?
Shobhit Uppal
Yes, you are.
Unidentified Participant
Oh, all right, sir. So I’m new to this sector and I Had a couple of questions also. So firstly, I was seeing that unlike your peers you do not diversify into long distribution projects like building tunnels or dams, irrigation facilities, underground metro, etc. Basically, you have primarily focused on buildings. So could you please explain why you have never thought of diversifying?
Shobhit Uppal
Our skill set has been developed around buildings and factories. And. And people who followed our company know that we are risk averse. We want to grow conservatively. And that’s what we’ve been doing all these years. We want to continue to remain a zero debt company. And that is primarily what is preventing us from going into higher risk areas. All right.
Unidentified Participant
Thank you. And secondly, in the past con calls we have emphasized on reducing our dependence on mobilization advance and instead utilize our internal accruals better. However, your mobilization advance has grown by 21% YoY from 528 crore in FY24 to 639 crore in FY25. So could you please explain the rationale behind this growth?
Shobhit Uppal
No. So if you look into the fine print, what I have been saying in my last few calls is that the mobilization advance from the public sector side on government projects is interest bearing which we are continuously reducing our dependence on. The increase in mobilization advance which you see is from the private sector side which is interest free. Have I answered your question?
Unidentified Participant
Yes. Yes sir.
Shobhit Uppal
We have said only 40% of our total mobilization advance is interest bearing. Right. If. If our. If our public sector order book is close to 60%. 41%. Yes. Public sector. Right. So it is only. And on all those. Most of those projects or newer project we are not availing the mobilization facility which the client is offering us. Because it is interest bearing that those projects like say Varanasi Airport we are funding from accrual internal accruals. And if you see our interest cost or finance costs have also come down. Interest bearing debt was 58% last year. Now this is 40%. What Sabir is saying. Last year interest bearing advance was 58%. Now it is 40. So it’s come down and it will come down further.
Unidentified Participant
Okay. Thank you. And so just one last question. There’s a trade receivable straight off of approximately 14 crore. So could you please let me know which party this is in regard with? Yes, sir. So sir, there’s a trade receivables write off of approximately 14 crore. So could you please explain which party this is in relation with logic.
Shobhit Uppal
Yeah. This is. This is. I think the receivable write off is from Logix and JP2. Two of our clients where NCLT the companies have been taken to LC NCLT. It should be a larger number. 12 crore. No? How much is 15? It’s about 15 crore. These two parties, Logic Provision and JP.
Unidentified Participant
All right sir, thank you so much. All the best.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Agastya Tave from CAO Capital.
Unidentified Speaker
Please proceed with a small surprise.
Unidentified Participant
Hello. Am I audible?
Shobhit Uppal
Yes, you are.
Unidentified Participant
Thank you very much for the opportunity sir. Sir, I used to follow this company like 20 to 20 years back and even as recently as like five, six years back, just before Corona, you guys used to be 12, 13% better margins. So now it’s very heartening to see that you are guiding for double digit margins. But when will we go back to those historical numbers of 12 13%, is it? Sir, do the business circumstances prevent us from reaching those levels or is it just a matter of time?
Shobhit Uppal
The world’s moved on. It’s changed a lot pre Covid post Covid I don’t see 12, 13% margins happening in the near future. You know it’s taken an enormous amount of effort to even get back to double digit margins, right? While yeah the industry is sort of booming if I may say so because you know now we are seeing both private sector and public sector capex happening. But there are myriad problems which afflict this industry. Primarily our over dependence on labor. Right. That continues to be the case and labor is in extremely short supply. So I don’t think we are going to reach 1213% margins till such time that there is greater standardization and greater dependence on or greater use of industrial techniques in what we do on our project sites.
That I don’t think is going to happen in the short term. But I am confident that now with Aluvaliya being a preeminent name and especially in the private sector there being limited players we should be able to sustain a double digit margin right through.
Unidentified Participant
Understood sir. So the second question is also related. 1. So if I look at the last three years, so 23, 24 and 25, if I look at the employee expenses they’ve gone from 200 crores to 351 crores and other expenses from 47 crores to 85 crores. So can you, can you point out what are the biggest reasons for that? So 20 FY24 I understand you had extremely high growth that year and last year there was obviously the problems that we know but still the costs jumped quite a bit. So were there any particular reasons behind this or was it just that because you lost so much Time because of the NGT issues and other issues that the costs are looking big because of the absence of revenue growth.
How should I understand this?
Shobhit Uppal
So primarily the costs were looking big. As you see, our staff cost in this quarter has come down because revenue has gone up. Right. Secondly, you know, we had, because we were well stocked up, the order inflow was large. So we had correspondingly also increased staff to execute the order backlog of about 15 and a half thousand crores. So now going forward, as we pick up speed, this cost is for that in terms of percentage of revenue is further going to come down. Pushing up our.
Unidentified Participant
What are our capabilities in terms of handling execution for you? So peak execution that we can handle. Assuming no interruptions, no elections, nothing. How much can we execute in a year? Assuming again, sir, a theoretical scenario where all permissions are on board, like everything is there. How much can we execute, sir, based on the current cost base that we have?
Shobhit Uppal
It’s a totally new question. You have me kind of at a loss for words because such a situation will never occur. But as I said, I have projected 15% growth. You know, this can go up to. In an ideal circumstance where there is no inertia, be it at the state level or at the central level and we are totally well stocked up as far as labor is concerned, we can do nearly 30% growth.
Unidentified Participant
Okay, okay, okay, okay. And so in terms of these cost items, how much should we. So 15% revenue growth. I understand variable cost obviously will scale up with the execution, but the fixed costs are how should we. What kind of inflation are you seeing in those?
Shobhit Uppal
So when you say fixed costs, you’re.
Unidentified Participant
Talking about employee expenses and other expenses.
Shobhit Uppal
So employee expense, you know, we are. Last year also, even though, you know we were hit by slow moving projects there, the average increments or increase for staff cost was about 15%. And going forward, if this industry continues to boom and seeing the skill shortage or shortage in even engineers for engineers and managers, I think this will go up by another couple of percentage points.
Unidentified Participant
Right, right, right. So I hope this starts reflecting in the pricing for you guys. Sooner or later you will have to pass this on.
Shobhit Uppal
No, but we are passing it on already. If we wouldn’t have passed it on, how would we have achieved a double digit growth in our profits? This is the time to pass it on. As I said in my answer to the earlier question that there is a paucity of good construction companies, especially on the private sector side where the focus on quality and safety is very, very high. We are now not only Us the entire ecosystem is demanding international standards. Even the buyers want the end product to be at par with especially in the metros.
To be at what they have. What they see when they travel abroad to the western countries. So there are only a handful of contractors who are equipped to do that.
Unidentified Participant
Right? Sir, thank you very much for answering all the questions. And I wish you all the best, sir. Hope for a non inertial year. Thank you sir.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Samyak from merciless investment managers. Please proceed.
Samyak Jain
Thank you sir. For the opportunity, a couple of book bookkeeping questions. First is I see that the other income has substantially increased in F25. So if you could just help us understand with what are the main components of other income in F25.
Shobhit Uppal
Other income majorly increased due to. Basically it consists of interest on FDs. That’s 45 crore. And beside that 8 crores. We have written back the suppliers out earning.
Samyak Jain
Got it. And other. And secondly, could you help us with the interest on mobilization advanced the interest amount for F25.
Shobhit Uppal
That’s interest on mobilization advance. Basically. Hold up for a moment. This has been increased from 18 crore to 24 crores this year. This is 24.91.
Samyak Jain
24.91. All right, sir. Thank you so much.
operator
Thank you. The next question is from the line of Shravan Shah from Daulat Capital. Please proceed.
Shravan Shah
Yeah. Thank you sir. For opportunity again. Sir, this both L1 1796 odd crore. When we are likely to get the LOA.
Shobhit Uppal
I think it will take about 30 to 45 days.
Shravan Shah
Okay. So. So considering the Godrej project that is a 397 crore. And plus this L1 so around 2200 odd crore that we have already received. And. And just if you can specify the the overall how much value of projects that we have already bidded and where is yet to open.
Shobhit Uppal
Shrovan. I don’t have that handy with me. We will get back to you with that figure. Satbir will separately give you that figure. Okay.
Shravan Shah
Okay.
Shobhit Uppal
Sorry. The order pipeline is healthy. And just to kind of reiterate my point which I made in my earlier answer is that we expect a similar order inflow as we had last year to the tune of about 7000 crores to 8000 crore. So going forward maybe another 5000 crores in this year. In addition to this 2000 or 2100 crores.
Shravan Shah
Got it. Got it. So that’s what I just wanted to understand. Is there a possibility that we can even do a 10,000 crore plus kind of order inflow. So just trying to see where we can see the further uptake in the growth in execution. Maybe for 27, 28. Just trying to understand.
Shobhit Uppal
Let me not give you a number but let me. Let me tell you that you know we are at the moment order booking is not an issue. We are being aggressively wooed by clients because as I said earlier there is a paucity. There are only a handful of large construction companies who are capable of delivering complex large scale projects across the spectrum of the building industry. So I think we should. The order inflow should be healthy enough in this year.
Shravan Shah
Okay.
Shravan Shah
Hello sir. Is it fine now?
Shobhit Uppal
Yeah, it is fine. Yes.
Shravan Shah
Yeah, yeah. I was thinking sir, order pipeline currently would be 25,000 crore around.
Shobhit Uppal
I think the order pipeline should be about 15,000 crores.
Shravan Shah
Okay, got it. And sir, is there a way that currently we are having a significant cash flow. Is there 900,000 odd crore. We are saying that we will not use the for government projects. The interest bearing mobilization advance also is there a way that we can even start reducing the subcontract expenses which as a percentage of revenue if I see is close to 2930 odd percent. So is there a way. So just trying to understand. Is there a way that we can even maybe a half a percent, 1% margin.
Shobhit Uppal
I don’t think it would be accurate to say that we can use our cash reserves to get down the subcontractor percentage. But what we are actively looking at is using our reserves to better control the supply chain both in terms of pricing and timely delivery which. Which consequently will help the margins only.
Shobhit Uppal
Okay. Okay. And also currently that the private is close to 58% of order book though we our aim is to have a 50. 50% government and private. So it is just the timing gap and that’s why it is. But that stand remains. It is or is there a possibility that we may see maybe government share would be 40%.
Shobhit Uppal
You’ve seen us in the past. We want private sector focus. Government sector. The margins are comparatively lower even on big ticket orders. So our focus over the next year or two years will remain on private sector. So I think 60. 40 short term 60 towards the sector.
Shravan Shah
Got it. Got it sir. Thank you. And all the best.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Bhavan Modi from Anandra. Please proceed.
Unidentified Participant
Yeah. Hello sir. Thank you for the opportunity. So my first question is with respect to the you know, order influence this year. Do you have a breakup of you know how much Is the new additions and how much is the change in scope? Would it be possible to provide that number?
Shobhit Uppal
No, it would be possible. Okay. New orders change in scope is going to be very little. You if you heard the earlier question, there’s about increase in Chopra, right?
Unidentified Participant
Okay, sir. So second is you know, how much of the order addition you know has come from the private sector.
Shobhit Uppal
Our total order book is 58% towards the private sector. As far as the percentage of the new order inflow, we will get back to you before the end of this call out of it. 400 crores new order inflow in this financial year. How much is private sector? Is that your right?
Unidentified Participant
Yes, yes. The second thing, you know, I may have missed on this topic but I just wanted to understand this order book which is there. So how much is you know, the fixed price contract and how much is, you know, cost trust contract, you know, where we can get the benefit of escalation.
Shobhit Uppal
11%.
Unidentified Participant
And so in case of you know, escalation, you know, escalation embedded contracts. So how much of you know, what are the you know, things, you know, that is available, you know, escalation like labor cost, material cost, any percentage that you can give us.
Shobhit Uppal
Government contracts, there is a formula or there are two formulae. One is for material, one is for labor. These are standard formula and there is a base price or base index which is mentioned for material as well as labor. And the escalation is paid based on the periodic indices which are released by the government. Escalation on volatile materials is there is a base price like cement, steel, aluminum, even block matter. There is a base price rnc, there is a base price which is provided in the tender. Any variation from that base price is a pass through.
We get compensated for that. As regards labor on some contracts, even in the private sector, labor escalation is calculated based on the index which is published by the government.
Unidentified Participant
Okay. So got it. And so the last question since we are in the we are the project of, you know, railway stationary development. So are we looking for, you know, new opportunities? First and second is since you know now like we are NCRBs, you know and the government is now, you know, focusing on, you know, Yamna cleaning opportunity. So are we looking for some EPC projects, you know, from that side?
Shobhit Uppal
It would not be prudent for me to comment on our bidding capacity or how we are looking to increase our business going forward. Let me leave you with the thought that what we have been doing for the past few years, we will continue to do that. Since we are present in the entire spectrum of the building industry whichever segment of this industry does well, be it industries like we are seeing a bit of an uptick in industrial growth we will look to focus on that. If we see we are already doing airports. If we see large value airport projects coming up we will bid for that be it private sector or public sector.
At the moment there is a lot of focus on residential. So we are looking at adding residential projects to our portfolio.
Unidentified Participant
Okay, got it. Thank you sir.
operator
Thank you. The next question is from the line of Vasudev from Nuvama. Please proceed.
Vasudev Ganatra
Yes, thank you for the opportunity. Can you just give us some updates. On the DLF project, Tata Memorial and. The signature global project.
Shobhit Uppal
So we’re doing two projects for DLF. One is a housing project in Sector 63 in Gurgaon which is well underway. We are logging a run rate of close to about 25 to 30 crores every month there. And we are slated to complete that project by the third. By September, October 26th. As regards the commercial project, about six odd million six and a half million square feet commercial project that we are doing on Delhi Gurgaon highway that we had just begun construction because they had gone into redesigning mode based on new Codal provisions. So we’ve just begun construction and starting next month we should be logging a run rate there about 25 to 30 crores there also every month.
As regards the signature global project that also the site has been handed over to us and we are since last month we are doing a turnover of about 15 to 20 crores every month going forward. This will be maintained in this year. As regards Tata Memorial project that project is also moving fine and we are doing a billing of close to about 8 to 10 crore rupees which is expected to be ramped up to 15 to 20 crore rupees starting next month.
Vasudev Ganatra
Sure sir. And sir, how is the competitive intensity.
Vasudev Ganatra
Looking like in the private and the public spaces?
Shobhit Uppal
Public sector intensity is high. Private sector, as I mentioned earlier there are only a handful of contractors for large jobs. When I say large I mean 400, 500 crores plus.
Vasudev Ganatra
Okay. Sure sir. That’s it. From my side. Thank you.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Nirvana Laha from Badrinath Holdings. Please proceed.
Unidentified Participant
Thanks for the opportunity sir. Given that we are looking at 15% revenue growth and you mentioned I think 200 crores of capex. Just wanted your thoughts on how interest, cost and depreciation could look like for the next year. Because last year Also I mean this year we did significant capex but the depreciation has sort of remained flat Yoy so some light on that.
Shobhit Uppal
Depreciation that is as flat because of larger impairment also and investment property. So that’s why there is a flat because earlier this is including impairment value. But this year impairment value has been reduced and that’s where depreciation cost has flat. And whenever what you ask finance cost. Finance cost has basically due to. This is 48 code to 58 code. Basically due to increase in mobilization advance. Increase advance and interest has been increased from 18 crore to 24 crore code.
Unidentified Participant
Sure. So the component of interest cost for you guys is non factors are there.
Shobhit Uppal
The basically one is inter on mobilization advance. And another factor is just if you have. If you know about the Indus 116 that’s unwinding of interest on license feed being take to RSRTC and other basically right to use assets. That’s including all these interests around 5464 lakh. And another is basically bank rental charges and other working capital interest. This is the crown 2522 crores.
Unidentified Participant
So if revenue grows by 15% and the mobilization advance component remains at 40% the interest bearing part the interest cost will grow slower than 15% you estimate or will it track the revenue growth?
Shobhit Uppal
Because that’s why. Because last year we have taken the advance in the last moment in February March like CST project that the major advantages in 204 that’s we have taken in February March. That’s why the inter cost has been increased in this year.
Unidentified Participant
Okay. Okay. And sir you mentioned that there was a write back of 8 crores in other income, right? Other than that everything was interest income related.
Shobhit Uppal
Yes. Okay. So 48 crores of other income was in the normal course of operations, right.
Unidentified Participant
Other income is basically interesting. That’s what?
Shobhit Uppal
Yes. Yes. Yes it is total 55 for other. Income it includes 35 crores. That’s what he’s saying. 48 crores interest on interest. Yes. Yeah.
Unidentified Participant
Okay. All right. Thank you and all the way.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Rajat Setia from. I thought bms. Please proceed.
Unidentified Participant
Hi. Thanks for the opportunity. Sir. With regards to csmt, what is the deadline to complete this project?
Shobhit Uppal
As I said earlier, this would be around if it’ll take about two two and a half years to complete this job.
Shobhit Uppal
Okay. And so is this the original timeline or it has already. It’s an extended timeline. As we have been mentioning there have been delays on account of design and design approvals.
Unidentified Participant
If there are any additional costs because of this delay, I mean, delay has already happened and may happen again in future. Given the complexity of the project, will we be compensated for any additional cost that happen because of.
Shobhit Uppal
It’s too early to say. It’s too early to say. We, obviously we will be. As we are moving along, we are keeping the department informed. But as it happens in public sector contracts or government contracts, these are issues which are generally resolved towards the last stage of the project.
At the moment, we are focused on getting our design approval so that we can march full steam ahead. And by when do we expect to begin any. I did mention, if you heard my answer to a few earlier questions. This year we are targeting a 400 to 500 crore output from this project.
Unidentified Participant
Yes, sir, I heard that. But I think, my question is by when do you think we are going to begin clocking some monthly run rate on this project?
Shobhit Uppal
It’s already happening. It’s already happening. It’s already happening. And as I said, the greenfield aspect of the projects, the approvals are in place now and we should be logging, you know, this month onwards we should be doing a billing of 15th 20 crores, which will keep increasing. And the whole year it will be anywhere between 400 to 500 crores. You see, you have to understand one thing here, that if it’s a very complicated project, given the nature of it, that it’s one of the largest running railway stations of the country and
the footfall remains here. So frankly speaking, my friend, it would be wrong to expect that, you know, it is going to get some huge monthly turnovers because it has taken us a while also to understand this, that the permissions will come in phases. Although we have planned for the whole thing, the design is getting approved for the whole thing. But it’s like, you know, one platform at a time.
And it is wrong to also expect, you know, you know, you guys are from Bombay, for example. You know, it’s wrong to expect that we shut down four platforms. You understand what the chaos it will be. But yes, whatever, whatever. I am not going to say that the, the railways is, you know, holding back or anything. They are doing maximum. I’m not going to say that they are wrong. But the Greenfield portion, as Shobhiji said, that that is now moving full steam ahead.
Unidentified Participant
Understood? Thanks for this detailed explanation. In terms of margins on this project, do we expect similar margins in double digits as for the company? Or you think it will be a different kind of a project in terms of margin?
Shobhit Uppal
It will Be different. I mean, let’s not, you know, let’s not try to. While projecting, giving you guys projections. We have factored in a slightly lower margin for this job.
Unidentified Participant
Sir, in terms of. Is it possible to share? I mean, we were L1 here. What would have been the L2.
Shobhit Uppal
There in the public domain? It’s been talked about often. So the gap was sizable. But yeah, it was sizable.
Unidentified Participant
Did we Talk about Edition 66 project that was in the previous quarter’s presentation. But not in this one, I think.
Shobhit Uppal
Sorry, come again?
Unidentified Participant
There was a Project Edition 66 in previous quarter’s presentation, but it wasn’t mentioned in this quarter’s presentation.
Shobhit Uppal
I’m surprised. It’s a part of our order book. It’s a, It’s a sizeable. It’s. It’s the Smart World project. It’s there, it should be there. It’s a part of our total order book and we have a substantial portion of that job still left. So it’s, it’s there. We’ll share if we share any kind of detailed order book. But he’s saying it’s not there in the presentation. Presentation, he’s saying is a summarized presentation. If you go through a detailed order book list, it will be there.
Unidentified Participant
Sure. And what’s the status on that?
Shobhit Uppal
So that is roughly, if memory serves me right, is a 600 crore job and we have done I think 70 to 80 crores worth of billing there. So. Okay, as I said, yeah, that’s, that’s moving fine.
Unidentified Participant
All right, thank you so much.
operator
Thank you. The next question is from the line of Vishal Perival from Antique Stock Broking. Please proceed.
Vishal Periwal
Yes, sir. Thanks for the opportunity, sir.
Shobhit Uppal
I think based on our month monthly.
Vishal Periwal
Construction schedule, we have given a guidance of almost like 15% for this year. So how this numbers look like for FY27 for us?
Shobhit Uppal
FY27, too far ahead. Don’t make us look so far ahead. But it will be similar. No. So reason why I’m saying is like initially you mentioned the order book that we have. It’s almost like two, two and a half odd years. So. So which means like, you know, around annually it could be like 6200, 300 sort of revenue. But yes, 50% of our orders are still in initial state. So some bit of pickup and then. Probably a peak of it in 27. So I think so given that scenario. Probably 25, 30% sort of revenue growth or maybe like 6,000 sort of thing for 27.
Unidentified Participant
Is it achievable or not? As somebody Asked One of the questions that was asked was if everything goes well, there is no slowdown from any government, state or center. There is no labor shortage. What do we expect to grow at? I said 30%. So yeah, if things, you know remain the industry keeps on moving forward. There is no cash shortage. There is no sort of international event which impacts our economy. There is no reason why we should not be eyeing 6,000 crores in the subsequent year. FY27.
Shobhit Uppal
Okay. So. So for this perquisite could be like in 15%. If we are achieving then probably that. Could be the number for 27. Yes. Then probably a pickup is happening that. That in each of our orders. Yes. Okay.
Unidentified Participant
Got it. Yeah. That’s all from my side.
Shobhit Uppal
Thank you. Thank you.
operator
Thank you. The next question is from the line of Anil Chaurasia from Smith. Please proceed.
Unidentified Participant
Thank you for the opportunity. Sir, just one clarification I need in between. I think somebody asked about that write. Off of advances to the tune of 15 crore. Just want to know whether all the. Outstanding advances from those two clients have been provided for. Secondly, whether there is any scope to recover this amount. And third, during which quarter have you provided for this? Sir, if that is possible to share. Thank you.
Shobhit Uppal
We have written off in this quarter. This is around 12 crore. We have written off and there are 2 crores. There is a provision on ECL basis and out of this major league as we have told that the logics and JP projects are there. But still we are looking to legal remedies and might be recovery may be there.
Unidentified Participant
Thank you so much.
operator
Thank you. Ladies and gentlemen. Due to time constraints that was the last question for the day. And I would now like to hand the conference over to Mr. Samir Thakur for closing comments. Over to you sir. Thank you all. I’ll hand over the call to Mr. Shobhi Tuppal for any closing remarks. Over to you sir.
Shobhit Uppal
Thank you. Thank you everybody. Thank you for joining in and look forward to speaking to all of you in a few months time. Thank you so much.
operator
On behalf of Ambit Capital Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.