Ashoka Buildcon Limited (ASHOKA) Q2 FY23 Earnings Concall Transcript

Ashoka Buildcon Limited (NSE:ASHOKA) Q2 FY23 Earnings Concall dated Nov. 14, 2022

Corporate Participants:

Mahesh Bhadang —

Satish Parakh — Managing Director

Paresh Mehta — Chief Financial Officer

Analysts:

Mohit Kumar — DAM Capital — Analyst

Unidentified Participant — — Analyst

Ashish Shah — Centrum Broking — Analyst

Riya Mehta — Equitas — Analyst

Rohit Natarajan — Antique — Analyst

Nikhil Abhyankar — DAM Capital. — Analyst

Subrata Sarkar — Mount Intra Finance — Analyst

Presentation:

Operator

Good day and welcome to the Ashoka Buildcon Limited 2Q FY 22 Results Conference Call hosted by Nirmal Bang Equities Private Limited. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr Mahesh Bhadang from Nirmal Bang Equities. Thank you and over to you sir.

Mahesh Bhadang —

Good afternoon, everyone. On behalf of Nirmal Bang Institutional Equities we welcome everyone to the Second Quarter FY ’23 Results Conference Call of Ashoka Buildcon Limited. From the management, we have with us today Mr Satish Parakh, Managing Director and Mr Paresh Mehta, Chief Financial Officer of the company. We also have US farm incomes, be Investor Relations team in the call with us today. Without further ado, I now hand over the conference to Mr Satish Parakh for his opening remarks on the results and in between following it up with the question-and-answer session. Over to you Mr. Parakh, thank you.

Satish Parakh — Managing Director

Thank you sir. Good afternoon everyone. Yes, thank you, Mahesh. Good afternoon everyone. I’d like to extend my warm welcome to everyone on this earnings call for second-quarter and half year ended September 30th 2022. Along with me, I have Mr Paresh Mehta, our CFO on the call. Let me now give the update on the equity sale of ACL Projects. As mentioned earlier, we have officially signed-up for the asset sale transaction of Ashoka Concessions Limited of five SPVs by entering into a share subscription and share purchase agreement with Galaxy investments to Private Limited. An affiliated entity of KKR.

The deal is to be completed soon after receiving required approvals from lenders and other stakeholders and we are in processing completing the balance CPs meanwhile we have received an extension of the period for fulfillment of CPs from them in our study. The deal transfers the entire share capital of these five SPVs including replaying of shareholder’s loan for an aggregate consideration of 1337 crores. The total proceeds received will be utilized to facilitate the exit of SBI Macquarie from Ashoka Concessions Limited allowing SBI Macquarie to exit the company fully.

Well, the. Obviously we. transfer of this five SPVs will reduce the consolidated project date of ABL by 2,930 crores. Also we have executed a share purchase agreement with National Investment and Infrastructure Fund for sale of 100% equity of general overall project for an aggregate financial consideration of INR686 crores. Our of INR686 crores EBILX is expected to receive INR450 crores, INR250 crores toward loan return around INR200 crores towards its 50% equity stake in SPV. FOr this transaction, the company will remain with the following media transaction in highway portfolio. 74% equity in one toll project, which is Jaora-Nayagaon, three fully owned annuity projects, which is Hungund-Talikot, Bagewadi-Saundatti and KSHIP, and the fully owned portfolio of 11 HAM projects. As mentioned earlier, we are in discussion of equity sell of Jaora-Nayagaon BOT toll project.

Coming to HAM projects, we have executed construction agreement with NHAI worth Rs. 1,079 crore for the development of 6-lane access control greenfield highway from kilometer 162.5 to kilometer 203.10, that is Baswantpur to Singnodi, section of NH 150 on Hybrid Annuity Mode under Bharatmala Pariyojana. The construction period is 912 days and the operation period is 15 years and also achieved financial closer for the same. We are expecting appointed data very soon. We also received pre-COD for our TS1, which is Mallasandra Karadi of NH-206. The total equity requirement of all 11 HAM projects is about INR1,096 crores, of which we have already invested INR848 crores as of September 2022. Coming to our order book, as mentioned, we have achieved a robust order book order order inflow. Some of the key and large orders received from 1st August are as follows. So we received a LOA for East Central Railway INR208.89 crores project for provision of Train Collision Avoidant System to be completed in 24 months. LOI for a project for Department of IT and communication government of Rajasthan of INR600 crores. It is a joint venture with Cube Construction Engineering Limited for construction and maintenance of Rajiv Gandhi Fintech Digital Institute at Jodhpur. Provision Housing Limited of 254.5 crores for a project of civil and structural for residential project at Kalyan. The construction is 42 months from the commencement date.

We have received an LOA from Southwestern railway for INR258.12 crores for a construction of new BG line between chainage 192 to 171 including electrical and telecommunication works between Tolahunse and Bharmasagar stations on EPC mode. The completion period is 24 months from the date of appointed date. The breakup of INR14,901 crores order book as of September 30, 2022 is — the road and railway’s project compromise around INR9,760 crores, which is 65% of the total order book. Among the road projects order book, HAM projects are worth INR2,689 crores and EPC road projects are worth INR5,573 crores. And railways is around INR1,498 crores. Power T&D and others account for around INR2,233 crores which is approximately 15% of the total order book. The EPC Building segment contributes to INR2,867 crores which is 19% of the total order book and EPC work of CGD business compromises — comprises of balance of INR41 crores. Let me reiterate that our focus is invest to build strong EPC business in the segments of highways, railways, power T&D and buildings. The current order book of INR14900 crores provide us with good visibility of EPC business growth.

On assets portfolio, we have already built 11 — we have already built 11 HAM projects portfolio. In terms of new project bidding, our priority will remain on HAM projects and strengthen the HAM project portfolio. That is all from my side. I would now request Mr. Paresh Mehta to present the financial performance of H1 and Q2 FY ’23. Thank you.

Paresh Mehta — Chief Financial Officer

Thank you sir. Good afternoon, everyone. The result presentation and press release for the quarter have been uploaded on the stock exchanges and the company’s website. I believe you all may have gone through the same. Now I would present the financial results for the quarter first quarter — second quarter ended September 30, 2022.

Starting with the consolidated results. The total income for Q2 FY’23 grew by 41% year-on-year to INR1,845 crores as compared to INR1,305 crores in Q2 FY ’22. EBITDA stood at INR467 crores in Q2 FY’23 with a margin of 25%. Profit after tax is at INR65.7 crores in Q2 FY’23. In H1 FY’23, total revenue was INR3,761 crores up by 44% year-on-year. The EBITDA stood at INR988 crores with a margin of 26.3%. Profit after tax stood at INR200 crores. Coming to the standalone numbers, the total income for Q2 FY ’23 stands at INR1,310 crores as compared to INR976 crores in corresponding quarter last fiscal, registering a growth of 34%. EBITDA for the quarter was at INR142 crores with an EBITDA margin of 10.8%. The company reported a net profit after tax of INR65.5 crores in Q2 FY ’23. In H1 FY ’23, total revenue was INR2,820.2 crores up by 39% year-on-year. The EBITDA stood for at INR317 crores with a margin of 11.3%. Profit after tax stood at INR169.8 crores. As you are all aware, due to equity sales transactions, we have — we are not recognizing interest income from SPV in your books and it has reduced EBITDA and also EBITDA margins have gone down impacted mainly due to inflationary environment and higher competitive bidding in some of the projects. During Q2 FY’23 BOT division recorded a total collection of INR275 crores as against INR243 crores in Q2 FY’22 and INR287 crores Q1 FY’23.

Total consolidated debt as on September 30, 2022 was at INR7,079.7 crores of which project debt is INR5,961 crores, of which INR2,930 crores stand for project debt of 5 BOT projects. NCD stood at INR250 crores at ACL level. The standalone debt is at INR869 crores, which comprises of INR167 crores of equipment loans and INR702 crores of total capital loans. The stand-alone debt has increased because of delays in collection in certain road projects, which will be collected in the coming two quarters. Out of the total consolidated debt of INR7,079.7 crores, INR2,930 crores will be transferred along with 5 SPVs of BOT projects. Both the sales addition, the effective consolidate would be around INR4,149 crores. With this, we open the floor for question and answer. Thank you.

Questions and Answers:

Operator

Thank you, very much. We will now begin the question-and-answer session. [Operator Instructions] First question is from the line of Mohit Kumar from DAM Capital please go-ahead.

Mohit Kumar — DAM Capital — Analyst

Good afternoon, sir. Thanks for the opportunity sir. My first question is on this EBITDA margin. So margins have been tracking much lower than our historical margins. Can I expect the margins to go back to 10.5% — more than 10.5% in FY ’23? Or do you think there is downside risk to that? And is it — in the quarter, is it that we have excluded the NTPC solar order, that’s the reason the margin is slightly lower. Is it a fair assumption?

Paresh Mehta — Chief Financial Officer

See, EBITDA margins are typically lower because certain projects which have been bid a bit competitively are getting into execution in this phase. In the previous years, previous quarters, there were two projects which are at EBITDA margins were being executed. Now those projects have come to an end and cost overruns have had an impact on the overall margins. We believe that this level of margins will continue for couple of more quarters but after which surely, we will get back to our number.

Mohit Kumar — DAM Capital — Analyst

Sir your guidance for certain medium-term are listed in FY ’24, ’25. Are we looking at this kind of number? Or you think that you go back to 12% kind of number which you were doing earlier?

Paresh Mehta — Chief Financial Officer

So for ’24, we would be in the range of — we would try to maintain a range of 9% to 10% of EBITDA margin.

Mohit Kumar — DAM Capital — Analyst

Okay understood sir. Secondly, sir, on the monetization, wherein can we expect [Chavro Naigaon] to happen in this quarter? And secondly, on the — and is there any plan to [monetize DHM] at which you already have, I think, 4 or 5 are upgrading, right?

Paresh Mehta — Chief Financial Officer

Yes. On the monetization, as already explained by our managing directors, five of the BOT projects are already in the process. CPs are almost getting over. And we should expect in 1 to 2 months for transition to get a closure. On the [Chennai order] also we — the CPs like most of the lenders have already given permission and we are just waiting for 1 banker and the authority permission to get the clearance. So that should get them in next two months time.

On the [Chawda Naigoan] project, we are on the last stages of pre documentation with the potential investors, and we should get that done anytime. We are waiting for that. As far as HAM projects is concerned, we are definitely looking out for potential buyers for the whole portfolio of 11 projects and we expect — and we definitely see a lot of interest by many strategic as well as financial investors for the same.

Mohit Kumar — DAM Capital — Analyst

Understood sir. Thank you and best of luck sir, thank you.

Operator

Thank you. Next question is from the line of [Shah] from Elara Capital.

Unidentified Participant — — Analyst

Hi. Good afternoon sir. So can you just give a revenue breakup for this quarter as well as Q2 FY ’22 segment-wise?

Paresh Mehta — Chief Financial Officer

So revenue breakup for Q2 FY ’22.

Unidentified Participant — — Analyst

’23 and ’24 both?

Paresh Mehta — Chief Financial Officer

Both you would like?

Unidentified Participant — — Analyst

Yeah.

Paresh Mehta — Chief Financial Officer

For EPC road, we were INR665 crores last quarter — I mean the previous year, which is INR820 crores this quarter. In [gross] sector, we were INR52 crores last year. We are now INR140 crores. On the railway, we were INR142 crores in last year, quarter two. Now we are INR184crores. On miscellaneous projects, we were approximately INR30 crores in the last Q2 FY’22, which is now approximately INR80 crores in Q2 FY’23.

Unidentified Participant — — Analyst

Okay. Also one more thing. So on the EBITDA margin front, you said that a lot of competitive projects have been — are under execution. So could you just give us a rough idea that how much portion of the order book is fixed price right now and how much portion has pass through contracts?

Paresh Mehta — Chief Financial Officer

So typically in most of the road projects are in the range of 8% to 9%. The international projects are at a higher margin, but they are — we get into an execution after Q4, where huge execution come in. They have just started off — ticked off. It will take some time for them [Technical Issues]. And on the power and other sectors, they are in the range of 8% to 9%. So — and certain projects which are getting over there, there we are seeing impact of escalation on handing. Also that impact is coming in this quarter. Some projects are getting over like [Mumbai Trans] project got over, we’ll get — a couple of projects got done in these two quarters also coming in two quarters.

Unidentified Participant — — Analyst

That’s all from my side.

Operator

Thank you. [Operator Instructions] The next question is from the line of Ashish Shah from Centrum Broking please go-ahead.

Ashish Shah — Centrum Broking — Analyst

Good afternoon sir. Sir, on the working capital side, so we have seen the increase in the level of debtors as well as the unbilled and other current assets, etc. So is it possible for us to break down what is the amount of debtors let’s say from highways and non-highway and also on the unbilled side. So just to get a sense where this increase is happening majorly from?

Paresh Mehta — Chief Financial Officer

So on the working capital side, if you see, we started in March, it has increased, but because in June, we’ve almost maintained that. And as far as the breakup of debtors is concerned so as the major change in the debt is in the road sector, the incremental [approximately] HAM and EPC contracts total debtor plus unpaid revenue is approximately INR1,300 crores, which is up by around INR300 crores — INR1400 crores, which is up by INR300 cores. Other sectors like power, approximately exposure is INR330 crores, railway is around INR300 crores. And [Middle East] our projects are around INR300 crores. Overall it’s debtors and unbilled revenue is around INR2,400 crores.

Ashish Shah — Centrum Broking — Analyst

Sir, this plus INR300 crores is on a year-on-year basis or sequential?

Paresh Mehta — Chief Financial Officer

On 28th of March. [Indecipherable] vis a vis March

Ashish Shah — Centrum Broking — Analyst

Vis a vis March. And this power and railways sir, corresponding numbers that you have handy?

Paresh Mehta — Chief Financial Officer

So in power, as I said, we are INR330 crores is previous of INR341 crores, March ’22 numbers. And in the railway we are at INR308 crores against a number of around INR195 crores.

Ashish Shah — Centrum Broking — Analyst

Right. So sir, in the HAM and EPC side, typically, I mean, the counterparty tends to be NHI, we usually don’t see a working capital build up there. So why would this increase would have happened, sir, on the road side?

Paresh Mehta — Chief Financial Officer

So we are slowly shifting towards milestone billing also. So that is also one of the reasons on bidding that than on mention projects because credit are coming to an end. So [Technical Issues] These are all milestones bid. So they — their billing will get over in the other projects [Indecipherable] so that is — that will get over in a couple of months time total by December. It should get most of these let’s say with clearance and our EPC contracts with Adani project [Indecipherable] project and it’s typically just taken also their payment deals bit delay. It is as per contract, but initial investment is there on mobilization and execution.

Ashish Shah — Centrum Broking — Analyst

Okay. Sir, sorry to just continue on this point, but I mean, it’s been in the HAM side, the payments have been on milestone actually for quite some time and even EPC has been milestone-based only. I’m just trying to understand what seems to have sort of changed over the last 6 months for this to go so much higher?

Satish Parakh — Managing Director

If you see the last 4, 5 months, we have had almost 4 to 5 projects under PCOD. They have achieved POCD. So at the last stage, we finally being a milestone billing takes time for to get clear.

Ashish Shah — Centrum Broking — Analyst

Okay. Sure. So you expect — sorry, go ahead.

Satish Parakh — Managing Director

And also the few amount of ratio that we can see, the turnover has increased vis a vis last year. So that has a corresponding impact on the [Indecipherable] also.

Ashish Shah — Centrum Broking — Analyst

So by the end of the year, would you expect the overall working capital and debt situation to normalize? Or do you think it should broadly remain in the vicinity of INR800 crores, INR900 crores of debt?

Paresh Mehta — Chief Financial Officer

It will broadly remain almost in the same rate, marginally improved, but generally remain in the same because certain contracts are also back-ended contract to the other sectors. So the overall market capital will remain the very same for all those options now.

Ashish Shah — Centrum Broking — Analyst

And sir, on the solar NTPC project, if you can just update on where are we currently in the process of execution or any discussion with the clients, it would be helpful?

Satish Parakh — Managing Director

Yes. In solar, it is absolutely status quo as far as panel are concerned, other works are getting completed, and they have been paying regularly.

Ashish Shah — Centrum Broking — Analyst

Sir, my point in that if the project keeps getting delayed, then obviously, our economics keep getting inferior in the project. So I mean what is the end result of this? I mean would they agree to for a increase in the quoted cost of the project? Or I mean, where do you see — I mean on what lines are we discussing with them?

Satish Parakh — Managing Director

See, we have been discussing to descope this panel part of it, which most of the players in the industry are either delaying it or trying to delete this because the prices have really gone haywire. So this government is considering as a policy, what they can really help the industry. In that time, they are also not insisting and we are proceeding with all the balance works.

Ashish Shah — Centrum Broking — Analyst

Right. And sir, does this project have any guarantees, etc from our side? I mean, have you given any BGs from the construction point of view?

Satish Parakh — Managing Director

We have performance BG [Indecipherable] project.

Ashish Shah — Centrum Broking — Analyst

Would that be around like 5%?

Satish Parakh — Managing Director

Yes. 5%.

Ashish Shah — Centrum Broking — Analyst

Okay. Thanks. Thank you. That’s it from my side. Thank you.

Operator

Thank you. The next is from the line of Riya Mehta from Equitas. Please go ahead.

Riya Mehta — Equitas — Analyst

Hello. Thank you for giving me the opportunity. My first will be in respect of ordering activity by NHI. So almost in the first half, we’ve seen a 60% decline versus this last year. So how is the ordering happening? And what kind of pipeline do we see for those projects for H2? That would be my first?

Satish Parakh — Managing Director

Yes. So yes, H1 has been slow, as you said. But H2 we are seeing there a good pipeline and the target basically NHI target of INR8,700 crores against INR6,300 crore last year. It is likely to be achieved in H2 yes.

Riya Mehta — Equitas — Analyst

Can our market share from there will be — like what kind of order is it for Ashoka?

Satish Parakh — Managing Director

See, we are now bidding for around INR55,000 crores of orders, which we have selected for bidding. Okay. Out of INR75,000 crores which are in pipeline, INR55 crores is what we are going to attempt. Then there are bids we have already built for around INR10,000 crores, which are still unopened. The [65000] is what is our visibility overall.

Riya Mehta — Equitas — Analyst

Okay. Also there recently — there was some article which said that NHI is looking for reducing 20% of the upfront payment they’re paying to the concessioners? So are we seeing any such kind of newer inputs within our contract?

Satish Parakh — Managing Director

Yes, I didn’t exactly follow your question?

Riya Mehta — Equitas — Analyst

So NHI has been reducing the upfront payment by 20%, and they would rather give it on a milestone basis. So are we seeing any such kind of impact and hence our working capital is bloated for the future order?

Satish Parakh — Managing Director

Yeah, this would actually come from January.

Riya Mehta — Equitas — Analyst

Okay.

Satish Parakh — Managing Director

And then they are paying monthly.

Riya Mehta — Equitas — Analyst

Okay. So from January, we would see more bloating in the working capital is my understanding right?

Satish Parakh — Managing Director

Yeah if they do not continue the benefit given, then definitely the payment cycles will get [deflet]

Riya Mehta — Equitas — Analyst

Okay and in terms of margins for the future orders, which we are bidding the INR55,000 crores worth of pipeline, which you have bid, what kind of margins are they coming at? Or are you bidding at? What kind of margins are we bidding at for the future of [Speech Overlap]?

Satish Parakh — Managing Director

Yes, these are little aggressive than what we used to do earlier. Because the aggressive in the industry still remains. The qualification norms is same and there are many players in the system so our focus is though our margins may go a little down but if our order book is good, we still on a gross basis would be able to make up our EBITDA and profits.

Riya Mehta — Equitas — Analyst

Okay. So we are on track for the order book level of INR15,000 crores for — INR15,000 to INR16,000 for FY ’23?

Satish Parakh — Managing Director

Yes, INR15,000 crores is our current balance order book approximately. And definitely going ahead, we look at another INR5,000 crores.

Riya Mehta — Equitas — Analyst

Okay. So almost INR20,000 crores is what we look for orders books for the year.

Satish Parakh — Managing Director

[Indecipherable] executed also in H2. So we should be opening the year with about INR17 crores, INR18 crores of balance order book.

Riya Mehta — Equitas — Analyst

Okay. So these all would be almost margin levels will be similar to 9% to 10%?

Satish Parakh — Managing Director

Our target is to be in the range between 9% to 11%.

Riya Mehta — Equitas — Analyst

Okay. And for the asset sale, how many — like in terms of quantitative terms, how many lenders are still pending for approval for ACL?

Paresh Mehta — Chief Financial Officer

Sure. So in ACI, we have 5 projects. So at 3 projects, we have received NOCs or the final NOCs are ready and we should receive it any time. For one of the projects it is typically — there are 6 lanes, there is one — as the main lender has just released that NOC, so the balance will fall in line. There are 6 — 5 more lenders there. So they’ll take their due course to release their NOCs in, say, 3 to 4 weeks’ time. NHI already is in the process of processing those NOCs and they are just waiting for the final NOC from the lender.

Riya Mehta — Equitas — Analyst

Okay. So almost in 1 month, we should see completion of — so I think by December year-end we target this to make some vision?

Paresh Mehta — Chief Financial Officer

We should be able to get the NOC from both NHI as well as lenders in 45 to 60 days.

Riya Mehta — Equitas — Analyst

Okay. So this would happen in Q4 FY ’23?

Paresh Mehta — Chief Financial Officer

Yes. I mean, transactions get over and cash provided we will move from the end of January, yes.

Riya Mehta — Equitas — Analyst

So maybe end of Q4, our debt levels, we would see INR3,000 crores reduction in our debt level and just pursuing downwards?

Paresh Mehta — Chief Financial Officer

Right. That’s all technical change?

Riya Mehta — Equitas — Analyst

Currently, what is the cost of borrowing?

Paresh Mehta — Chief Financial Officer

Cost of borrowing is in the — for the BOT projects are in the range of 8.5. And with the HAM projects in the range of 7 to 8.5.

Riya Mehta — Equitas — Analyst

Well that’s it from my side. Thank you.

Operator

Next question is from the line of Rohit from Antique. Please go ahead.

Rohit Natarajan — Antique — Analyst

Thank you for taking up this question. So my question has more to do with your margin spot. Currently, as I see, we have INR15,000 crore of order backlog and out of that 55% is occupied by roads and the remaining 45% is roughly, say, Power T&D, railways and EPC buildings. If you could give us some color on what the current order backlog’s margin profile would be segregated into? Like how much is roads-making and how much is this nonroads making?

Paresh Mehta — Chief Financial Officer

So the current portfolio of road projects should be a profit margins would be in the range of 8% to 9% — 9.5% that would be a range based on today’s cost escalation and other variable. On the railways, also, it would be almost similar. On the other miscellaneous front, on the international projects of roads, it would be better. It would be in the range — it’s more than 12% to 13% and on the other sectors like miscellaneous sector, the range would be approximately in the range of 8% to 10%.

Rohit Natarajan — Antique — Analyst

Sir, when you talk about the new projects that you have identified for your order inflow part, you also talk about some competitive intensity and other such things. But how do you see that incremental numbers to be translating? Like will it be north of 12% kind of EBITDA margin, can you work around that?

Paresh Mehta — Chief Financial Officer

Pardon, could not get you.

Rohit Natarajan — Antique — Analyst

The competitive intensity in your future order inflows that you see? How much can it translate into margins? Will we be back to that 11%, 12% plus kind of number anytime soon?

Paresh Mehta — Chief Financial Officer

It will remain at the same levels, which are there today.

Rohit Natarajan — Antique — Analyst

Okay. Sir, finally, on the fund-based limits and non-fund based limits, if you could give us some color on it, how much is it utilized and how much is it currently right now?

Paresh Mehta — Chief Financial Officer

So we are on the non-fund base, we are almost 35% utilized out of INR5,000 crores of EBIT. And on the fund base, we are approximately [70, 85] — 80%, 85% utilized along with our short-term borrowings inclusive.

Rohit Natarajan — Antique — Analyst

How much is that limit sir, the amount?

Paresh Mehta — Chief Financial Officer

Around 800 — as we have said around INR800 crores in total.

Rohit Natarajan — Antique — Analyst

Sure. Thanks. That’s it from my side. Thank you.

Operator

Thank you. Next question is from the line of Nikhil Abhyankar from DAM Capital. Nikhil, your line is unmuted, request you to please unmute it from your side.

Nikhil Abhyankar — DAM Capital. — Analyst

Yeah, thanks for the opportunity sir. I’m not sure if you answered this question a little bit. You have grown at around 35% of the revenue in this — in the H1, and you had earlier given a guidance of 15% to 20%. So would we like to revise our guidance for the remainder of the year?

Paresh Mehta — Chief Financial Officer

Based on our H1 [content] modestly exhibited on H2, we would — should be in the range of 25% to 30%.

Nikhil Abhyankar — DAM Capital. — Analyst

25% to 30% with a margin guidance of 10%?

Paresh Mehta — Chief Financial Officer

EBITDA around say. 9, 9.5.

Nikhil Abhyankar — DAM Capital. — Analyst

9, 9.5. Okay. Sir, any targets on order inflow?

Paresh Mehta — Chief Financial Officer

Around INR5,000 crores, of which around 70% to 80% would in the railway sector and balance would be [on site]

Nikhil Abhyankar — DAM Capital. — Analyst

Understood. And sir, my second question is regarding Shivamogga Tumkur package 213, Banur-Kharar and Kwarantaro. These projects are relatively moving slow. So any specific reason for that?

Satish Parakh — Managing Director

See Tumkur Shivamogga Package one, as I said, we have got pre COD. PS1 and Tumkur Shivamogga 2 also we will be getting in Q3.

Nikhil Abhyankar — DAM Capital. — Analyst

In Q3.

Satish Parakh — Managing Director

Q3, we’ll get — yes, package 2 also we will get the pre-COD. Q4, we should target our package 3. So 2 we are getting in Q3, Q4 we will get 3. And 4 we got, let so — this will go to next year.

Nikhil Abhyankar — DAM Capital. — Analyst

Understood sir. And the total interest cost has gone up around 40%, 50% Y-o-Y. So what can you just give a comparison as to cost of borrowing for this quarter and the last quarter, like September ’22 as to September ’21?

Paresh Mehta — Chief Financial Officer

Yes. So definitely interest scenario has changed in this quarter, two of last year to quarter two of this year having seen almost 50%, 55% jump in short-term borrowing for WCDL and CCs are up by almost 35% to 40% interest rate and borrowings also compared we have more than what it was there and there were certain mobilization advantages, where mobilization advantage was taken in for the projects, which has had contributed to the increase in the interest cost.

Nikhil Abhyankar — DAM Capital. — Analyst

Okay. Understood. And just bookkeeping questions. Can you just give us the numbers for retention money, mobilization advance and?

Paresh Mehta — Chief Financial Officer

So mobilization advance its impacting was approximately INR590 crores.

Nikhil Abhyankar — DAM Capital. — Analyst

Mobilization advance is INR590 crore.

Paresh Mehta — Chief Financial Officer

Yes.

Nikhil Abhyankar — DAM Capital. — Analyst

Okay, retention money?

Paresh Mehta — Chief Financial Officer

Retention money, on the — all sectors included is approximatively is all about INR185 crores.

Nikhil Abhyankar — DAM Capital. — Analyst

INR185 crores. And sir unbuilt revenue?

Paresh Mehta — Chief Financial Officer

Unbuilt revenue INR1,152 crores.

Nikhil Abhyankar — DAM Capital. — Analyst

Okay. So that’s all from my side. All the best.

Operator

Thank you. The next question is from the line of Subrata Sarkar from Mount Intra Finance. Please go ahead.

Subrata Sarkar — Mount Intra Finance — Analyst

Hello?

Satish Parakh — Managing Director

Yeah.

Operator

Yes, please go ahead.

Subrata Sarkar — Mount Intra Finance — Analyst

Yes. No sir, partly my question has been answered. Like my question is again on the KKR deal, like, when we can like once — when the deal will actually get over and we will be able to reflect it in our financials — start reflecting in our financials. So is it from Q4 of this year or what is this like, that’s my main question?

Paresh Mehta — Chief Financial Officer

Yes, as I explained, CPs will get over in this Q3 definitely. And Q4, we should get the cash on the transfer of shares and cash in by — in Q4 first part. So March ’23 numbers would definitely reflect the deal.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay, sir. So like March ’24 will reflect X of the deal, basically, the numbers will get reflected.

Paresh Mehta — Chief Financial Officer

X of the Pi value.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay, that’s my only questions. Okay.

Operator

Thank you. The next question is from the line of [Vasudev from Nirvana] Please go ahead.

Unidentified Participant — — Analyst

Thank you for the opportunity sir. Most of my questions are answered, just a few data-related question. So if you can help me with what is the CapEx that we get in Q2? And how much are we planning for H2 now?

Paresh Mehta — Chief Financial Officer

So CapEx for H2 was approximately INR24 crores, INR25 crores and going forward, we would typically end up with a [Technical Issues] INR20 crores, INR25 crores.

Unidentified Participant — — Analyst

Okay. Next thing, the equity that we infused in Q2 and for the balance equity infusion, if you can give the breakup in H2 FY ’23, FY ’24 and FY ’25?

Paresh Mehta — Chief Financial Officer

So Q2 on the HAM projects was INR32 crores invested in Q2. And for the balance, 2023 half year, equity to be invested in HAM is INR136 crores, for 2024 INR84 crores and 2025, INR30 crores. So all put in equity to be invested as of date is INR251 crores in the HAM projects.

Unidentified Participant — — Analyst

Okay. Thank you. And lastly, out of the order book currently that we have, how much is under execution? And how much of the part is a fixed price contract?

Satish Parakh — Managing Director

How much is — see our international projects are on fixed price, then our Panagarh Palshit is on fixed price, our NTPC solar is on fixed price.

Unidentified Participant — — Analyst

Sorry sir Panagarh Palshit and which one was that?

Satish Parakh — Managing Director

NTPC

Unidentified Participant — — Analyst

NTPC, okay. And out of the current order book, how much is under execution?

Satish Parakh — Managing Director

Almost — if it’s in — except in Building segment, in Road segment, almost everything is under execution because appointed date of Punjab Malankarad had also come. Appointed date for Koruturu Assam 1 also come. So this INR1000 crores which was stuck up, these appointed dates have already come in July and October. So as far as building Maldives, still we are hoping to start by Q4, which is INR1,000 crores. And rest all is in progress.

Unidentified Participant — — Analyst

Okay sure sir. That’s it from my side. Thank you and all the best.

Operator

Next question is from the line of Ashish Shah from Elara Capital. Please go ahead.

Ashish Shah — Centrum Broking — Analyst

Thank you so much for the opportunity again. So could you just give us the breakup of the Building segment order book? I mean, the Maldives project, the hospital at Navi Mumbai then the sewage treatment plant. So if you could just do the detailed order book breakup?

Satish Parakh — Managing Director

See Maldives is INR1,000 crores, INR600 crore is around DY Patil Hospital, INR600 crore is building projects of Fintech University at Rajasthan. So then we have two buildership projects taken from [Bitterlink] and one is Bihar that is INR250 crores and INR100 crores.

Ashish Shah — Centrum Broking — Analyst

Okay. And also one more thing, the Banghur Karara project, have you, I mean, have you received the appointed date for that project because it’s almost 2 years since we are received this project?

Satish Parakh — Managing Director

Yes, we have received that sector that is Karara, the appointed date was at 10th October.

Ashish Shah — Centrum Broking — Analyst

Okay thank you. Thank you so much.

Operator

Thank you. The next question is from the line of Riya Mehta from Equitas. Please go ahead.

Riya Mehta — Equitas — Analyst

Thank you for giving me an opportunity. This is a follow-up question. So previously, I wanted on know that what kind of instance the cash pin code happened in Q4? What kind of interest cost do we see for the full year?

Paresh Mehta — Chief Financial Officer

On the short term, definitely, interest cost, we believe another 50 to — 50 bps would be increased. Otherwise, we believe that other costs will remain same. So.

Riya Mehta — Equitas — Analyst

Okay. And in terms of international side, what kind of demand scenario are we seeing there?

Paresh Mehta — Chief Financial Officer

What kind of?

Riya Mehta — Equitas — Analyst

Demand — and what kind of pipeline orders are we seeing?

Satish Parakh — Managing Director

Internationally, presently, we are working in Jayada, Maldives and Benin is one power distribution project, which we have picked up. We are L1 in Bangladesh. So this is all we are focusing on international. Maybe a few orders we may see in Africa.

Riya Mehta — Equitas — Analyst

But are we seeing any major orders like the one in Maldives?

Satish Parakh — Managing Director

Nothing major immediately in pipeline.

Riya Mehta — Equitas — Analyst

Okay. And what kind of margins will the Maldives order have?

Satish Parakh — Managing Director

So looking at today’s dollar rate, we are still hopeful of making 11%, 12% margins.

Riya Mehta — Equitas — Analyst

Okay, thank you. That’s it from my side. Thank you.

Operator

Thank you. [Operator Instructions] We have the next question from the line of Mangesh Bhadang from Nirmal Bang. Please go ahead.

Mahesh Bhadang —

Hello Sir. Sir a couple of questions from my side. One is on the industry. So I just wanted to understand from you, what could be the reason for this slowdown in order awarding activities in the NHAI. What according to you what is the reason that is the first.

You mentioned that second half, you expect it to improve, but at least for the time being, we are seeing some slowdown. And in the past also, we have seen probably NHAI probably not meeting its targets that have been given in current year. So do we expect this year to turn out to be the same again? That’s the first question. And sir, second question is on the HAM portfolio that we have. Now that we are seeing more than six PCOD, COD — when — what, how we do we look to monetize the sale? Is there any time line that you have internally reviewed? That’s it.

Satish Parakh — Managing Director

See, industry-wise H1, we have seen slowdown only because NHAI has already awarded good number of projects and for further projects, the land acquisition, particularly for NHAI was becoming more and more challenging. And they are disciplined in giving appointed date only after 80% of physical position is achieved. So there, we saw lot of challenges, and therefore, there was bidding activity was slowed down, a lot of work has been done on most of the projects. So H2, we feel should be — we should see that NHAI meeting target or nearing the target. That was the main reason according to us.

About HAM projects, you said, definitely, we have 11 HAM projects, out of which we have achieved pre-COD on 6 projects. And balance, as I explained, Q3, one will happen, Q4 one will happen. And then balance in next year [Q4], PS4 we have — will be completing next year. And the other two will be starting. So this is all on HAM project. HAM project also, we are looking at — we are in the process of looking at divesting HAM projects also.

Mahesh Bhadang —

Any timelines on it, sir? And it has to be on a piece meal [Speech Overlap].

Satish Parakh — Managing Director

It should be another two quarters.

Mahesh Bhadang —

Okay, sure that’s it from me.

Operator

[Operator Instructions] Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to the management for their closing remarks. Thank you, and over to you.

Satish Parakh — Managing Director

Yes. Thank you, Nirmal Bang and team. Thank you Mahesh. Thank you all the participants. If any other queries are remaining, then definitely, most welcome. After the investor advisers are also available and our CF operator as is always available to clarify any questions. Thank you, everyone.

Operator

[Operator Closing Remarks]