Ashoka Buildcon Limited (NSE: ASHOKA) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Bhavin Modi — Analyst
Satish Parakh — Managing Director
Paresh Mehta — Chief Financial Officer
Analysts:
Jainam Jain — Analyst
Vaibhav Shah — Analyst
Anupam Gupta — Analyst
Unidentified Participant
Vasudev — Analyst
Sahil Jain — Analyst
Amit Vora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Ashoka Buildcon Limited Q3 FY ’25 Earnings Conference Call hosted by Anand Rathi Share and Stock Brokers Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 star 10 0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Bhavin Modhi from Anand Rathi. Thank you, and over to you, sir.
Bhavin Modi — Analyst
Hello, everyone. On behalf of Anand Rathi Institutional Equities, I extend a warm welcome to the Ashoka Bilcon Limited Q3 FY ’25 earnings conference Call. We are pleased to have with us today Mr Satish Parak, Managing Director; and Mr Paresh Mehta, Chief Financial Officer. Without further delay, I invite Mr Satish Parak sir to share his opening remarks, following which we will open the floor for a Q&A session. Over to you, sir.
Satish Parakh — Managing Director
Thank you. Thank you, Bhavin. Good afternoon, everyone. On behalf of Asuka Bilco Limited, I extend a warm welcome to everyone joining us today to discuss our business and financial results of Q3 and nine months ended 31st December 2024. On this call, we are joined by our CFO, Mr Prash Mehta; VP Accounts, Mr Piyush Jain; and SGA, our Investor Relations Advisor. Let me begin by giving an industry overview. India remains committed to advancing its major infrastructure projects driving forward remarkable growth trajectory with the vast road network spanning there are more than 20 in the with a vast road network spanning over 3.3 million kilometers. The country’s road infrastructure plays a pivotal role in the development of key economic sectors. Notably, while national make-up just 2% of the network, they extend over 66,500 kilometers, serving as backbone of connectivity and economic progress. In the recent Union Budget 202526, the government has reinforced its commitment to infrastructure by allocating INR11.21 lakh crore to this sector. Additionally, an outlay of INR1.5 lakh crore has been proposed for 50-year interest-free loans, it’s two states for capital expenditure and reforms. These measures aim to support an rapid growth at transport network across the country. The sector continues to build strong momentum driven by ambitious government targets. We see a government aims to award around 12,900 kilometers of highway project, a 50% increase from the previous year. The second-quarter saw an average was 600 kilometers awarded per month. While the 3rd-quarter witnessed even greater traction. With November alone recording 773 kilometers in awarded projects, additionally, October 2024 set a record for electronic toll collection reaching INR6,115 crores due to increase in travel during the festive season. Additionally, the Ministry of Road Transport and Highways is also prioritizing high-speed corridors while embrassing technological advancement, particularly through adoption of artificial intelligence and infrastructure. This includes implementation of automated and intelligent machine-added construction to enhance efficiency and precision in National projects. Now coming to the company, Ashokar Concessions Limited, a subsidiary of the company has entered into share purchase agreements with Indian Highways Trust, inter earlier for divestment of its five subsidiaries. The aggregate enterprise value of the transaction is INR5,718 crores subject to adjustments for cash and debt, translating into an equity value of INR2,539 crores. The company will acquire 34 stake — 34% stake of equity of ACL from Macquarie and SBI Infrastructure Investments Private Limited and SBI Infrastructure Trust for INR1,526 crores. The company along with its subsidiary Viva Limited and ACL, have entered into an agreement with the investors SPA, for the following transaction, which shall subject to completion of sell certain proceeds, assets of ACL and the company, thereby providing an exit to the investors from ACL. Post-acquisition of ACL Securities held by investors, ACL would become wholly-owned subsidiary of the company with effect from the date of acquisition of ACL Securities. Another development is Ashoka Bilco Limited and subsidiary Ashok Limited have entered into agreements of to sell their stake in several HAM project subsidiaries for an aggregate concession of 2,324 crores now on the project front, let me update you on this. The company has received provisional certificate, provisional completion certificate of 39.07 kilometers out of total 40.6 kilometers. And the company the project is executed by Ashoka Basvanpur Singodi Old Private Limited and SPV, a wholly-owned subsidiary of the company the company also received letter of acceptance from MSRDC projects in October 2024 for an aggregate value of 2,39 company also received LOA from BMC for a project of construction of at T Junction on Panwal Highway in Maharashtra, for a value of INR1,126 crores inclusive of GST. The company has also received free LOs from MMRDA in October 2022 aggregating to INR1,737 crores. The letter of award and execution concession agreement with Authority for the project of INR1,391 crores in the state of West Bengal. For Boy HAM project we are also in receipt of notification of award for Madhya Pradesh Puruk reduced Limited for INR192 crores. This is the EPC contract. Then company has also received execution of contract with Bangalore International Airport Limited, a bid accepted at INR1055 crores. This is an EPC project for construction of elevated taxiway systems payment, brainage and ancillary buildings. As on 31st December 2024, our balance order book stands at INR15,457 crores. Roads and railway projects comprise around INR14,000 crores, which is 74% of the total order book. Among the road projects order book, hand projects are to the tune of INR2,020 crores and EPC about projects are what INR9,663 crores. The railway is around INR416 crores, INR416 crores. PAR TMD accounts for of INR3,796 crores, which is approximately 23% of our total order book. The total building EPC segment is INR562 crores, which is just 3% of the total order book. To conclude, let me say again that our primary focus remains on maintaining our sustainable EPC business in segments and come to see highways, railways, power transmission and distribution as well as buildings. This is all from my side. I’d now request Mr Paresh Mehta to present the financial performance. Thank you.
Paresh Mehta — Chief Financial Officer
Thank you, sir. Good afternoon, everyone. Starting with the standalone numbers for Q3 and three months — nine months FY ’25, the total income for Q3 FY ’25 stood at INR1,816 crores as compared to INR2162 crores in Q3 FY ’24 or degrowth of 16%. EBITDA for the quarter stood at INR187 crores with EBITDA margin of 10.3%. PAT stood at INR61 crores for the quarter. For nine months FY ’25, the total income stood at INR5175 crores as compared to INR5309 crores, a degrowth of 3%. EBITDA for the period stood at INR493 crores, a growth of 4% with EBITDA margins improving by 60 basis-points to 9.5% and PAT stood at INR137 crores for nine months FY ’25. Our revenue contribution for each segment for Q3 FY ’25 is as follows. Road EPC contributed 57.9%, road HAM contributed 12.4%, power EPC contributed 23.7%, railways stood at 2.5% and other segments like building, EPC and others contributed 3.4%. Coming to the consolidated results, the total income for Q3 FY ’25 stood at INR2,426 crores as compared to INR2,699 crores in Q3 FY ’24 or 10% degrowth. EBITDA for the quarter stood at INR677 crores, a growth of 6% year-on-year. PBT grew by 62% Y-on-Y to INR307 crores. For nine months FY ’25, total income stood at INR7,450 crores as compared to INR6,867 crores in Q3 FY ’24, registering a growth of 8%. EBITDA for the quarter stood at INR2,251 crores, a growth of 30% year-on-year. PBG stood at INR1,074 crores, growth of 137%. During the quarter, the company and its subsidiary, Ashok Consession Limited, have entered into share subscription and purchase agreements and other transition documents for the sale of its entire stake in five of its wholly-owned subsidiaries — beauty subsidiaries, which are engaged in-construction and operating of road projects on beauty basis, which is subject to completion of certain conditions precedent, including approval from lenders of the respective subsidiary and regulatory approvals. Consider the considering the high probability of the sales transitions getting completed as per the IndAS AS105, the assets and liabilities of the subsidiaries have been classified as held-for-sale in the current quarter. Consequent to this, the amortization of intangible assets in these subsidiaries have been discontinued in the consolidated financial results from dated classification as for-sale. Further, the company has also recognized deferred tax asset of INR424 crores on the difference between the carrying value of the net assets of such subsidiaries in the consolidated books and its tax base. Total consolidated debt as of 31st December 2024 stood at INR6,847 crores. The standalone debt is at INR1,466 crores, which comprises of INR107 crores of equipment term-loan, INR1,059 crores of working capital loan and NCDs of INR300 crores. In Q3 FY ’25, in our Beauty division, the company recorded a gross total collection of INR331 crores as against INR314 crores in Q3 FY ’24, recording a growth of 5%. With this, now we open the floor for question-and-answers. Thank you.
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 and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press R&2. All participants are requested to use while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, you may press R&1 to ask a question now our first question comes from the line of Jainam Jain from ICICI Securities. Please go-ahead.
Jainam Jain
Thank you for the opportunity. Sir, my first question is, what is the order pipeline which we are seeing right now in NHI biddings.
Satish Parakh
Yeah, so NHI is now coming up with projects of 3,400 kilometres which are already announced. That is NHI plus MLTH plus NHIDCL, amounting to around INR1,11,000 crores. So projects which are in pipeline now.
Jainam Jain
Okay. And sir, what would be the order inflow and revenue guidance for FY ’26? Also if you can give some margin guidance for FY ’26?
Paresh Mehta
So for FY ’26, we expect based on the order book received in the last quarter and expected orders in the coming quarters, we expect 10% to 15% at least growth in the revenues over ’25 with the margins to the tune of 10% to 11%.
Jainam Jain
Sir, order inflow guidance?
Paresh Mehta
Order inflow guidance would be in the range of INR12,000 crores to INR14,000 crores.
Jainam Jain
Okay, sir. That answers my question. Thank you so much.
Operator
Thank you. Next question comes from the line of Shah from JM Financial Limited. Please go-ahead.
Vaibhav Shah
So what will be the guidance for FY ’25 in terms of revenue? So it will be flattish or we expect some decline in
Satish Parakh
See there would be — we’ll try to achieve the last year numbers, but it could be short achieved by about 2% or 3%, not sure. We’ll just see why how the year-ends in a couple of next two months ends.
Vaibhav Shah
EBITDA margins could be closer to 9% for Q4, similar as Q3.
Satish Parakh
Yeah, for Q3 — for Q4 would be we try to achieve the same margins of Q3. Overall mix would be in the range of 8.5%.
Vaibhav Shah
Okay. Okay. And sir, are there any one-offs in the standalone results in 3Q? Did we receive any money from the deals in the standalone P&L?
Satish Parakh
No, no, nothing on the deals in the standalone in Q3
Vaibhav Shah
Okay. Okay, okay. And sir, if you look at the results, so our debt as per the results come at around INR2,050 odd crores and PBT, it is around INR1460 odd crores. So what is the difference of that INR600 odd crores?
Satish Parakh
This would be debt received from our associates or SPVs.
Vaibhav Shah
So we are charging the interest also on that, right?
Satish Parakh
So for debt received from SPVs, we are — we are marginally charging interest.
Vaibhav Shah
What would be the interest-rate, sir?
Satish Parakh
In the range of 8.5% to 9%.
Vaibhav Shah
And sir, lastly, we look at the interest cost, there has been a sharp increase on a quarter-on-quarter basis. So has there been a rise in mobilization advances because debt has come off on a quarter-on-quarter basis?
Satish Parakh
Yeah. So the mobilization advance has typically remained the same though it has been more of a large amounts have been received in the last month, that is the month of December. But seeing the recovery of the mobilization advance also, it remains at INR1,050 odd crores in both quarter-end September and quarter quarter-end December. Vis-a-vis the vis-a-vis the cost of finance going up, definitely money in unbilled revenue and debtors continues to be still a bit high in the last quarter also over and above September, which we expect to get all cleared by March-end.
Vaibhav Shah
Okay. Okay. And sir, our guidance on equity investment is for ’26 and ’27 for the new HAM that we have won?
Satish Parakh
Yeah. So overall, our equity commitment, balanced equity commitment as of date is around INR380 crores, which is including the last HAM HAM project, which we got of approximately INR225 crores. So if you spread it over the years, by ’25 end, we will spend around INR175 crores, INR25 crore INR26, INR112 crores and INR26 crores INR93 crores.
Vaibhav Shah
And sir, lastly, if you look at the HAM project that you have won, so the EPC value appears quite high. So crore is the BPC and EPC is INR1,318 crores,
Satish Parakh
Right. I mean, based on that, that’s how we are bid for. So EPC will continue to have its own margin of 11% — 10% to 11% and there’ll be IRR at the SPV level also. The project cost would be in the range of INR1,700 crores.
Vaibhav Shah
Okay. And sir, lastly, if you could give us a number that what is the total order inflows in terms of EPC value for us still date?
Satish Parakh
For the year
Vaibhav Shah
For the year.
Satish Parakh
INR9,000 crores approximately.
Vaibhav Shah
Okay. Okay. Thank you, sir. I’ll come back-in the queue. Thank you.
Satish Parakh
Yeah.
Operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. Next question comes from Bhavin Modi from Anand Rathi. Please go-ahead.
Bhavin Modi
Yeah, hello, sir. So this year we saw most of the inflows coming from the EPC road side and there was one from the HAM side. So how should we read this side? We are expecting more HAM to come with the upturn cycle or focus has changed towards EPC and power translation.
Satish Parakh
So Bhara now we are all-around EPC player so we will have new-builds from road projects EPC, road HAM projects, railways, power and buildings. So we are bidding in all these segments and also water. So now Shukar has become a full-range EPC player with focus on EPC and wherever we get an opportunity for PPP, you will pick-up some HAM projects right. There will be PPP opportunity maybe in other sectors also.
Bhavin Modi
Sir, how are you looking about the tendering uptake in — from NHA North because generally Q4 is ramping-up of awards generally happens during Q4. So are we also likely to see same trend this year?
Satish Parakh
Yeah, there is very much possibility that this March also would see lot of bids. Like I said, said, 1,3400 kilometers, they are already in pipeline, which is amounting to INR1 lakh INR11,000 crores. Plus there are a lot of other bids which may come up by March-end. So good amount of bidding should happen by March India. Yes.
Bhavin Modi
And sir, some queries with respect to the monetization. So what is the status of NHA and lenders approval with respect to the 11 Hem projects and what are the timeline expected?
Paresh Mehta
So in the 11 HAM projects which we have almost 50 almost 70% of our assets we have got in-principle okay from NHI and lenders also almost 50% has come. So we are targeting certain offloading of certain HAM projects by 31st March? Yeah.
Bhavin Modi
Okay, sir. And sir, with respect to Jahoura and, I understand can you help us with the status of deal with NIF? And moreover, what are the — what are the progress with respect to remaining 20%, 26% stake from SRI and SMPL?.
Satish Parakh
So on the, the long stop date on that agreement passed away a long-time back. So presently, we are not in active discussion with NIF for the acquisition of the same. And as far as the 26% of shares are concerned, we are still pursuing with MPRDC for getting the NOC for transferring those shares to our name.
Bhavin Modi
Okay. So post that we will be the like 100% shareholder of that side.
Satish Parakh
Yeah, including 26% which we may acquire from Macquarie.
Bhavin Modi
Okay. Okay. And sir, with the last with respect to the five BOT assets, which we earlier dealt with KKR and now we are with Indian Highway Concession Trust. So shall we expect the timely approvals and what is the final date with respect to that for monetization.
Satish Parakh
So we expect to get the transition concluded by 31st March. We are at a very extra — a few of the NOCs have already come in from NHI and we are waiting for the couple of more. On the banks also, almost 70% banks have already given their 60% banks have given their consent NOC for change of ownership. So we are trying to achieve the timelines and close it by March ’25.
Bhavin Modi
Yeah, okay, sir. That’s it from my side.
Operator
Thank you. Thank you for participants, you may press star and 1 to ask a question. The next question comes from Anupam Gupta from IIFL Securities. Please go-ahead.
Anupam Gupta
Yeah, hi, and thanks for the opportunity, sir. The question is on this existing order book. So of the total INR16,5000 crores, what number is under execution at this point of time
Satish Parakh
So almost 14,000 is under execution one project of MSRDC yet to start and one project I wanted by is yet to start.
Anupam Gupta
Okay, MSRDC and, so two only projects which are where
Satish Parakh
Other projects are all started.
Anupam Gupta
Okay. Okay. Understand. And so post the INR9,000 crore inflow, which you have seen right now in this year, what’s the sort of inflow you’re looking for the balance of the quarter?
Satish Parakh
Balance of the quarter, we expect INR3,000 crores to INR4,000 crores we should be able to looking at the bidding pipeline tenders which we already built and not opened and maybe this March-end should throw up a good amount of building. So we’re expecting around INR3,000 crores, we should do.
Anupam Gupta
Okay. And any BOT project which will come up in this quarter or BOT only thing will happen next year?
Satish Parakh
BOT means a sale of BOT projects? Yes.
Anupam Gupta
No, no bidding for BOT project you would be
Satish Parakh
Bidding for — bidding for BOT is one of projects come only for buildings and we are very selective about bidding for BOT projects. So we haven’t yet participated in any of the BOT or highway bidding.
Anupam Gupta
Understand. Okay. And the next question is on the margin. So margins, you have seen an improvement in this quarter and you’re again saying that next quarter should be stronger and guidance for next year is also a better. So overall, do you think that the entire stock of relatively poor quality projects are now over and the new order book, existing order book is largely 10% plus margins or so.
Satish Parakh
Yes, but the new order books will pick-up in Q3, Q4, because these are all at totalization stage, design stage. And these all structures ramp-up will see in Q3, Q4.
Anupam Gupta
Sure. Okay. Okay. Sure. That’s all from my side, sir. Thank you.
Operator
Thank you you. Next question comes from the line of Sushant Varma, an individual investor. Please go-ahead.
Unidentified Participant
Hello, good afternoon, sir. I know you won’t — I mean this is not the forum to really answer the answer the question about the stock market and anything like that. But very clearly in the last 45 days, the stock has lost about 25% of its value. I know you won’t probably comment on that. But does that indicate that the whole sector will have tailwinds considering the budget — budgetary allocation or the overall environment? So how is it going to pan-out? I’m a bit worried about the sector as a whole and particularly, of course,. So what’s your view on that?
Paresh Mehta
I think the stock markets are playing out more on public sentiment and sentiment to the government cannot really specifically say why stocks are moving up or down in this last couple of months throughout in every sector. So better not said than commit anything on that.
Unidentified Participant
No, I understand that sir. That’s why I started with that saying, I don’t expect an answer from a stock movement perspective from you. But does that indicate an underlying problem in this sector? That is what I’m trying to find out.
Paresh Mehta
No, I agree to agree. So opportunity remains buoyant. There is no challenge on that. The government’s focus on infrastructure and as we have seen in the last few months, even in the state-level also, they are very keen in giving out projects. So I think so buoyant as far as the infra playout is concerned, you may Call-IT whether roads, you may Call-IT solar, you may Call-IT railways. Everywhere they are looking at up the infrastructure facility and quality.
Unidentified Participant
Right. Yeah. I mean that is what I was my assumption too. But somehow, I mean I’m not getting a very good vibe probably in the last 45 days, that’s what I said. So maybe I wanted to understand if you had any other perspective. So it looks like we will probably continue to do Ashok would continue to do equally good or if I mean hopefully better than last year, right? I mean, the pipe and everything.
Paresh Mehta
We see a lot of opportunity, sir.
Unidentified Participant
Okay, sure. Thank you. That is what I wanted to check your view. Thank you very much. All you best.
Paresh Mehta
Yeah.
Operator
Thank you. Next question comes from the line of Vasudev from Nuvama. Please go-ahead.
Vasudev
Yeah, thank you for the opportunity, sir. So sir, you just mentioned in a previous question that we are looking to dispose some of our 11 HAM assets by end of FY ’25. So what is the value that we are expecting? And when do we expect the entire transaction to get completed?
Paresh Mehta
Approximately by 25 March, we should be able to able to sell assets out-of-the INR2,300 crore INR1,000 crores of assets by March ’25 and balance by December — September — in the September, December quarter, the balance projects in Q1, Q2, Q3 as the projects are ready for being transferred?
Vasudev
Okay, sure, sir. And so like we will have this no few asset from HAM and you also said that five BOT assets also we are projecting to complete the sale by March-end. So what is the debt levels that we should be expecting by the end-of-the year
Paresh Mehta
So by the end-of-the year, approximately INR2,000 crores of INR2,500 crores of debt on the beauty projects will go off the books and approximately another — maybe let me check that out of maybe around another INR1,000 to INR500 crores of the debt on the HAM projects will go off the books. So we should see a approximate INR4,000 crores of debt to go out-of-the books by March on the consol basis.
Vasudev
Okay. Sure, sir. And on the bid pipeline, you said that from NH share and it’s INR1 lakh 11,000 crores. So how is that looking on the other segment?
Satish Parakh
So other segments also building is happening. Railways is quite optimistic. A lot of builds are coming in. Power segment we see at state levels? So this definitely is a building pipeline.
Vasudev
Okay, okay, sir. And sir, on the capex front, just what we’ve done in the nine months, how much are we projecting for Q4 and FY ’26?
Satish Parakh
Hello.
Vasudev
Yeah, sir.
Satish Parakh
Yeah. On the capex front, we have spent approximately just give you the number around INR505 crores on capex and probably in this quarter, we will spend another 20 odd crores..
Vasudev
Okay. And for FY ’26, have we charted out
Satish Parakh
INR125 crores in
Vasudev
125 crores. Okay, sir. And sir, just last one, if you can again repeat the revenue breakup for the quarter between different segments.
Satish Parakh
For the each segment, okay, I’ll just tell you.
Vasudev
Yeah.
Satish Parakh
On the road EPC, INR1,051 crores.
Vasudev
Okay.
Satish Parakh
Power INR471 crores.
Vasudev
Okay.
Satish Parakh
Railway INR169 crores
Vasudev
Okay
Satish Parakh
And other segments all put together approximately INR45 crores.
Vasudev
Sure, sir. That’s it from my side. Thank you.
Satish Parakh
Thank you.
Operator
Thank you. Next question comes from the line of Shah from JM Financial Limited. Please go-ahead.
Vaibhav Shah
Thanks for the follow-up. Sir, when do we expect appointed it for the new HAM and what is the land status for the same
Paresh Mehta
Hello hello.
Vaibhav Shah
Yeah.
Paresh Mehta
Can I get the question again?
Vaibhav Shah
Yeah. So when do we expect the appointed date for the new HAM?
Paresh Mehta
The new HAM expounded date, I think so financial closure will be by March-end March and September — sorry, July is somewhere around July we should expect.
Vaibhav Shah
And what is the land status?
Satish Parakh
Last year has been done for the substantial portion, more than number 3G is in-process out of 293 hectares required, 283 3D has been processed. So this may take around three to four months for the lands to clear. And therefore, we are expecting somewhere around September to get the appointed date.
Vaibhav Shah
Okay. What is the — when do we actually start the MSRDC and project?
Satish Parakh
So only one out of three MSRDC two have started. One will start by March-end. This is for MSRDC. And, we may see a start date by April or May.
Vaibhav Shah
And sir, in, our sales for 51%?
Satish Parakh
Yes. Sugar call.
Vaibhav Shah
And who is our partner in the project?
Satish Parakh
We have a JV partner called Akshaya Infrastructures Private Limited.
Vaibhav Shah
Okay. Okay. And sir, have we started the execution of the airport project?
Satish Parakh
Yes, has execution already started and is going on in-full swing year.
Vaibhav Shah
Okay. Okay. Okay. Thank you, sir. Okay. Perfect.
Operator
Thank you. Our next question comes from the line of Sahil Jain from Seven Islands BMS. Please go-ahead.
Sahil Jain
Hello, am I audible?
Satish Parakh
Yes, you’re audible.
Sahil Jain
Yeah, hi. Thank you for the opportunity. So I have one question related to the balance sheet — balance sheet side. So I’ve seen the debt is like too much. So are there any plans to reduce the debt level? And I see the interest cost also going up quarter-on-quarter basis. So what are the company’s plan to reduce the debt? And any guidance on any numbers on the — how would the balance sheet look like in FY ’26 end?
Paresh Mehta
So you’re looking at the consol balance sheet or the standard accounting
Sahil Jain
Deconsol consol balance sheet?
Paresh Mehta
On the consol, so there are two-parts of the debt. One is the debt on the projects and one is the debt on the standalone EPC business. On the — on the debt of the project-level, these will get reduced as and when we keep on selling those assets to the buyers, which we have suggested some by March and some by Q3 — Q1, Q2, Q3 of next year. So a substantial portion of the debt, which is approximately INR5,500 crores should go off the books by December 2025. New debt will pick-up, say, like with the last project or debt may — we’ll start picking-up debt. But other than that, there is no other project debt. As far as standalone debt is concerned, approximately we have INR4,000 crores of standalone debt, which we expect to reduce as and when recoveries at our EPC businesses in power largely and in certain projects in-roads, we expect receipts to come out from either the concerned employers or from in the process of sale of our beauty projects where these debts will be paid-off. And so from that perspective, and if these transactions on the sales happen by June-end, most of the standalone debt also should become substantially low.
Sahil Jain
So can you quantify the amount or the new debt that you said that you’ll be raising for the projects for the — like after the repayment,
Paresh Mehta
So what we have much told is we’ll receive approximately INR2,500 from sale of our beauty projects, which will be split into INR1,750 in one stage and INR750 in the next-stage and INR2,300 crores in the HAM projects. This approximately INR4,800 crores is what we expect to receive and after clearing off dues of Macquarie of around INR600 crores, we will be left with approximately INR3,000 crores will be used for lowering debt and other consequent opportunities in HAM and other intra projects?
Sahil Jain
Okay. Okay. So going-forward in FY ’26 and say March 2027, what would be the balance sheet look like, like the cash debt on the consol level,
Paresh Mehta
Should be substantially low, substantially low,
Sahil Jain
That would be low. And what about cash?
Paresh Mehta
What about
Sahil Jain
Cash and equivalents
Paresh Mehta
Surplus based on this, it all depends on what plants come up in the ’25, ’26, but still even then also it should not be — it should be substantial cash on books.
Sahil Jain
We can say we can be net cash.
Paresh Mehta
Yeah,
Sahil Jain
Margin. Yes, right? We can — okay. Okay, right. Thank you. Thank you. That’s it.
Paresh Mehta
Thank you.
Operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question comes from the line of Dr Amit Vora from the Homeopathic Clinic. Please go-ahead.
Amit Vora
Hello. Hello. Yeah. Yeah, am I audible?
Satish Parakh
Yeah, you are. You are. Please go-ahead.
Amit Vora
So my question is that after selling this present HAM and BOT projects, what other projects of HAM or what will be pending with us and if you can sir, tell the value of those projects if possible.
Paresh Mehta
So we will have only one HAM project with us, which is recently awarded to us, which will continue on our consol books of total project size of INR1,700 crores. Debt would be around in the range of INR900 crores but the debt to be taken would take at least two years time to pick that debt. Other than that, there’ll be no major debt on the books on certain small annuity projects which we have. And there will be debt on the Chennai or our project which we have on a consol basis.
Amit Vora
And projects apart after selling this five bot and 11 HAM projects, we would not be having any other projects right now.
Paresh Mehta
We have one project, toll road project and one or our annuity big project and two small annuity projects, which should also get closed by Q1. So it’s largely one project, one cannuity project.
Amit Vora
So after the project. Two big and two small projects after selling this five hot and 11 HAM projects.
Paresh Mehta
Yeah, yeah, yeah.
Amit Vora
And of it has been seen that the toll collection has been very good. So does that affect our balance sheet also?
Paresh Mehta
Yeah. So we — so we have seen growth in our certain major projects are leaving one-off, but otherwise, we have seen 5% growth in the total revenues quarter-on-quarter.
Amit Vora
Okay. One last question. In-between, we had heard about news about the investment in green hydrogen. If you can just brief us something about that, will that be under ABL only or it will be a separate company?
Satish Parakh
So this is an MOU entered with the Bihar government wherein they are supposed to provide us a land for putting up the entire project. The green hydrogen project is basically a project powered by solar power by renewable energy. So we’ll be powering it by solar power. And this proposal is in a very inception stage and we’ll give you update as embedded materializes.
Amit Vora
Okay. And it would be under ABL only.
Satish Parakh
Will come a subsidiary of Asugar will go.
Amit Vora
Okay. And one last thing. See, green hydrogen is a completely new thing and we are into infrastructure and our EPC. So I don’t doubt your capability, but then do we have sufficient capabilities about green hydrogen? This expertise is something different.
Satish Parakh
So this is what basically we need to build over the period. And green power is solar is we have enough capability and understanding of solar business. Hydrogen production is not something new which is done. Whenever it is powered by renewable energy, it’s a green hydrogen.
Amit Vora
Yeah. Okay. Thank you so much. That’s all from my side. Thank you so much.
Operator
Thank you. Next question comes from the line of Bhavin Modi from Anand Rathi. Please go-ahead.
Bhavin Modi
Yeah. Just a small — sir, what is the order addition till the Nine-Month December ’24 and what is the addition this quarter, like in Q3?
Satish Parakh
But till that we have got around INR9,000 crores of order book and out of that INR3,000 crores is what we are looking at.
Bhavin Modi
So sir, when you say INR9,000 crores, so do you also include the Nandaga projection of date? And the EPC project in one MSATCL
Satish Parakh
We have not taken only the orders LOI where we have received, that is INR9,000 INR8,900 crores, INR8,980 crores if you want exact.
Bhavin Modi
So this is till December, right, December ’24 —
Satish Parakh
December end
Bhavin Modi
And we expect more INR5,000 crore of
Satish Parakh
INR3,000 crores is what we expect into close by this year
Bhavin Modi
Okay, got it. Got it. Thank you, sir.
Satish Parakh
Right.
Operator
As there are no further questions from the participants, that concludes today’s conference. On behalf of Anand Rathi Share; Stock Brokers Limited, thank you for joining us. You may now disconnect your lines.
Paresh Mehta
Thank you. Thank you very much.
Satish Parakh
Thank you everyone
Bhavin Modi
Thank you, everyone, thank you.