Ashoka Buildcon Limited (NSE: ASHOKA) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Satish Parakh — Managing Director
Paresh Mehta — Chief Financial Officer
Analysts:
Unidentified Participant
Sarthak Singh — Analyst
Hardik Gandhi — Analyst
Yashovardhan Banka — Analyst
Vaibhav Shah — Analyst
Jainam Jain — Analyst
Bhavin Vithlani — Analyst
Vasudev Ganatra — Analyst
Parikshit Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4FY25 earnings call of Ashoka Bilcon hosted by Nirmal Bang Equities 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 Star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Sarthak Singh from Nirmal Bang Equities Pvt. Ltd. Thank you. And over to you sir.
Sarthak Singh — Analyst
Thank you, Alaric. Good afternoon everyone. On behalf of Nimal Bank Institutional Equities, I welcome you to the Quarter 4 FY25 earnings conference call. With the management of Ashoka Buildcon Limited we have with us Mr. Satish Parak, Managing Director and Mr. Paresh Mehta, CFO.
Without further ado, I will now request Mr. Satish Parakh sir to start with his opening comments after which we can open the floor for question and answers. Thank you. And over to you sir.
Satish Parakh — Managing Director
Good afternoon. On behalf of Ashoka buildcon Limited I extend warm welcome to everyone joining us today to discuss our business and financial results for Q4FY25 ended 31 March 2025. On this call we have joined with our CFO, Mr. Paresh Mehta and SGA, our Investor Relations Advisor.
Let me begin by giving an industry overview. India’s infrastructure sector remains a core pillar for the country’s economic development strategy. The government continues to prioritize infrastructure as a key foundation of growth and a driver towards its 5 trillion economy target. Flagship programs like the National Infrastructure Pipeline and PM Gati Shakti are helping streamline planning and improve execution across key segments including roads, railways, ports, airports and urban development.
FY202425 has been a relatively muted year from the infrastructure overall. However, National Highways Authority of India delivered a strong performance building 5614 km of highways. During this year, capital spending crossed over 2.5 lakh crores which is the highest ever and shows strong progress across ongoing infrastructure projects.
Looking ahead, the outlook of highway segment remains positive. The government has announced a major investment plan of Rs. 10 lakh crore over the next two years toward improving infrastructure. These efforts aim to bring Indian highways in line with global standards. We have seen strong progress in recent years the national highway network has grown from 91,287km in 2014 to one 46,000km today with marked improvement both in quality and execution.
Now on monetization front, NHI raised 28,724 crores through models like tot, invits and toll checkerage. Notably, 17,738 crores came from Invits alone, marking the highest ever collection from this model. Overall, the infrastructure continues to see strong support from the private sector backed by stable government policies and new financing models. With a healthy pipeline of upcoming projects and a growing focus on digital and sustainable infrastructure, we believe the sector is well placed for steady long term growth.
Coming to the company Update to update on cell disposal of Stixin in subsidiaries of Ashoka Institutions limited this is in referral to our early announcement about proposed sell of entire shareholding in five BoT subsidiaries of Ashokan Session Limited to Maple Infrastructure Trust.
The completion of this transaction has been delayed as some of the required conditions are still being worked on in agreement with the proposed investor. The new expected date to complete the transaction is 30 June 2025. Coming to the order book status the company has received two new project orders. The first came in March 2025 from Maharashtra State Electricity Transmission Company. It was 311.92 crores and involves setting up a 400 oblique 220 KVA substation at Amravati district in Maharashtra. The work includes supplier action, tasting and commissioning and related civil works.
The second order was received in April 2025 for Central as well. This is EPC project for gauge conversion between Pachora and Jamna exploring Pachora yard and road over bridges with a contract value of 568.86 crore. These new orders further strengthen our position in both power transmission and railway infrastructure sector. As on 31st March 2025, our balance order book stand at INR 14,905 crores. This is excluding orders received post 31st March 2025 of INR 795 crores. The breakup of order book is as follows.
Roads and roadways projects compromise around 10,687 crores which is 60.4% of the total order book. Among the road project order book HAM projects are to the tune of INR 1859 crores and EPC road projects are worth 8688 crores and railway is around 320 crores. Part DND accounts for INR 3618 crores which is approximately 24.3% of the total balance order work. The total EPC building segment is rupees 420 crores which is 2.8% of the total order book.
To conclude, let me say this again that I EPC primary focus remains on maintaining a sustainable EPC business and segments. Encompassing segments encompassing highways, railways, power transmission and distribution as well as buildings.
This is all from my side and I would now like to request Mr. Paresh Mehta to present the financial performance. Thank you.
Paresh Mehta — Chief Financial Officer
Hello. Thank you. Good afternoon everyone. Starting with the standalone numbers for Q4 and FY25. The total income for Q4FY25 stood at INR 2012 crores as compared to INR 2005. 33 crores in Q4FY24, a degrowth of 21%. EBITDA for the quarter stood at 181 crores with EBITDA margins of 9%. Patch stood at INR 60 crores for the quarter FY25, the total income stood at 7188 crores as compared to 7841 crores or degrowth of 8%. EBITDA for the period stood at 673 crores or degrowth of 3%. From EBITDA margins. But EMITA margins improving by 60 basis point to 9.4%. PAT stood at a INR 197 crores for FY25.
Our revenue contribution for each segment for Q4FY25 is as follows. Road EPC contributed 58.3%. Road HAM contributed 12.5%. Power EPC contributed 2.8%. Railways stood at 2.11%. And other segments like Building, EPC and others contributed 24.3%. Coming to the consolidated results, the total income for Q4FY25stood at INR 2755 crores as compared to INR 3138 crores. In Q4FY24 registering a 12% growth. EBITDA for the quarter stood At INR 838 crores, a growth of 16%. YNY Patch stood at INR 452 crores. For FY25, total income stood at INR 10205 crores as compared to 1005 crores. In FY25 24 registering a growth of 2%.
EBITDA for the quarter Stood at INR 3089 crores, a growth of 26%. YNY PAD stood at 1734 crores for FY25. Total consolidated debt as on 31st March 2025 stood at INR 6671 crores. The standalone debt is at INR 1405 crores which encompasses 101 crores for equipment loans, 300 crores of NCD and 1004 crores of working capital. Finance in Q4FY25 in our BOT division the company recorded a gross toll collection of INR 348 crores as against INR 329 crores in Q4FY24 recording a growth of 6%.
With this, we now open the floor for question answers. Thank you.
Questions and Answers:
operator
Thank you sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 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 comes from the line of Hardik Gandhi from HPMG Shares and securities. Please go ahead.
Hardik Gandhi
Hello sir. Am I audible?
Satish Parakh
Yes.
Hardik Gandhi
Yeah, so actually I was just looking at your closing balance sheet versus your presentation. So in your presentation the debt is still at the similar levels as we were in the past quarter. But in the balance sheet I can see the short term borrowings and the long term borrowings have decreased drastically. So I’m not able to understand why is this difference?
Paresh Mehta
Because they may be transferring to current and non current also. So maybe you can take it offline or we will come back later.
Hardik Gandhi
Yeah, we can do that. Because if. If you see in the borrowings in the. In the non current financial liabilities it has decreased from 37378 to just 72. Right. And in. Even in the short term borrowings if. If we were there in current liabilities, short term borrowings have decreased. Have just stayed in the similar range. But in the presentation the debt is still showing at a SIM like there is no significant debt reduction in the presentation on a standalone as well as on a console basis. So yeah, that was my. So just basically have we reduced the debt drastically in this past quarter or is it just that?
Paresh Mehta
So these are in the presentation we are talking. We are talking of only external debt. On the balance sheet we have debt which is including associates. Also from that point of view there is a direction the associates outstanding in the last quarter.
Hardik Gandhi
Correct. So still. Sorry, but I’m not able to understand why There is this huge difference in the borrowing amount. But in the presentation, the standalone debt and console debt is kind of the same from quarter on quarter. Like if in December to 24, I’m seeing the total debt as 6,847. The March quarter is still showing 6,600. Right?
Paresh Mehta
Yeah. So from that perspective and even in the consolidated, what’s happening is one of the assets which was held as investment is now moved on to asset help for sale. So from that perspective also the debt numbers will change. You can have a offline detailing of the.
Hardik Gandhi
No worries. Yeah, yeah. And the second question is on the line of government spending. Do we do we foresee, given the recent changes in the geopolitical issues, the government spending will be diverted from infrastructure to something else. And how are we placed to, you know, placed in the upcoming orders? If you can just give a light on that.
Satish Parakh
If you see last quarter, government has not. It’s moving very slowly as far as NHI is concerned. But there is nothing related to funding as such. What we see in next few quarters, we’ll see a good amount of happening.
Hardik Gandhi
Understood. And usually sir, sorry, but when do we get the new orders? Like if in it’s in Q1 Q2 or is it spread equally throughout the year?
Satish Parakh
So Q1 Q2 may be muted, will get 2 to 3,000 crores and post Q3 Q4 will be really good inflow for the books.
Hardik Gandhi
Understood. And just last bit on the execution side, are we seeing any execution slowdowns? Do we, do we expect similar growth in the top line as last year or do we see a drastic change? Because along with that since the toll prices have increased. So we can expect a significant growth.
Satish Parakh
Growth wise. Coming here we don’t see more than 10% as Q1 Q2 will be still slow. Because whatever orders we have bagged will really pick up in Q3 Q4. There are a lot of initial hurdles in starting those works like land acquisition, forest clearances and all this. So they really will pick a post monsoon. So out of the seven projects only three have really started. Four will start only in Q3. Okay, so Q3, Q4 will be very good. Q1, Q2 still will have some models here.
Hardik Gandhi
Okay, understood. All the best, sir. Thank you so so much.
operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Yashvardhan Banka from Asset Tiger. Please go ahead.
Yashovardhan Banka
Thank you sir. So just wanted to understand what will be an interest, cost and savings from you know, reduction in the borrowings.
Paresh Mehta
What was that.
Satish Parakh
Interest cost.
Paresh Mehta
Interest cost we are typically at the range of nine, nine and a half percent. And what was the other question which you had?
Yashovardhan Banka
So we’ll be expecting savings in interest. Like since we have reduced our borrowings. Right. Drastically.
Paresh Mehta
On a external debt borrowing continues to remain same for 31st March 25, 2526. We expect the borrowings to go down and effectively interest costs will go down. Keeping in mind monetization of assets on both BOT as well as HAM front, these costs should substantially go down in Q3, Q4.
Yashovardhan Banka
Okay.
Paresh Mehta
Q1, Q2 is the period when we expect both the bot and large number of assets of HAM projects should get monetized.
Yashovardhan Banka
Okay, so, so just not a bit like a bit clarity needed on the borrowings as in the borrowing second C is reduced from 3700 to, to 700 crores. Right. So that’s a reduction of around 3000 crores. So we’ll be having, we’ll be expecting some interest cost savings moving on these quarters. Right. That’s what I’m trying to understand.
Paresh Mehta
Yeah, trying to get hold of this 3,000 number which you’re talking about.
Yashovardhan Banka
So it’s on page number the consolidated balance sheet or page number 11 of our IP investor presentation.
Paresh Mehta
Data not drawn down on an overall basis. It is presentation which has happened. If you see a liability is held for sale, it has gone up from 287 to 9940 crores. 287 to 940 crores. Here 1. And on the borrowings also. If you. See financial liability borrowings and I left his head for sale, this is where the change has happened.
Yashovardhan Banka
Got it? And so this is the last question. Sorry.
Paresh Mehta
For page six of the presentation. Largely the debt remains similar. It has reduced from 7,139 in March 24 to 6,671 in March 25.
Yashovardhan Banka
Got it? Got it sir. And any further plans in reduction of debt?
Paresh Mehta
As I said post monetization, substantial debt reduction will be there both due to offloading of the assets where the debt will get held up from. The balance sheet of APL in the bot is almost 2000 crores. And in the major seven hands which we initially sold are under 2000 crores. So by quarter two we expect 4000 crores of debt to go down from the consolidated balance sheet. And whatever excess monetization will happen, we reduce the working capital debt also.
Yashovardhan Banka
Got it sir. Thank you.
operator
Thank you. The next question comes from the Line of Vaibhav Shah from JM Financial limited. Please go ahead.
Vaibhav Shah
Sir, you mentioned that our revenue guidance for FY26 would be around 10% growth. So earlier we guided for 15% growth for FY26. So what has led to this? Got in the guidance first and also what could be the guidance for EBITDA margins and order inflows for FY26.
Satish Parakh
So basically whatever new orders we got, as I explained were supposed to start in Q1. Q2 out of this only 40% are started. 60 is getting shifted to Q3 because of various reasons like land acquisition and forest clearances. So these are getting delayed started. That is why the whole growth for the year is getting affected.
Vaibhav Shah
Okay, so FY27 should be a much better growth in terms of. Since from which the resolution will pick up.
Satish Parakh
Yeah, definitely. Because all these projects would have been done in full swing. And plus new order books which we bag this year would also get converted into business here.
Vaibhav Shah
And sir, guidance on margins and ordering flow.
Paresh Mehta
So on margins we’ll be improving our margins based on the new order books which have come in and we should be in the range of 10, 10% plus.
Vaibhav Shah
Oh, cancel order inflows.
Paresh Mehta
Order inflows 10 to 12,000 for 2526. That’s what we expect. Split into various projects, various sectors, roads, railways.
Vaibhav Shah
Okay. And sir, what would be the actual inflow for FY25 if we remove the GST portion. And what is the EPC value we got in FY25?
Paresh Mehta
Approximately 9,500.
Vaibhav Shah
9,500 crores. Okay. And so lastly if you look at the asset held for sale number on the standalone balance sheet it is around 1198 crore. So it includes only 5 bot or what all it includes?
Paresh Mehta
It includes all the hand projects. 11 hand projects and five bot projects. And one annuity project.
Vaibhav Shah
Okay.
Paresh Mehta
You’re talking about standalone or consolidated?
Vaibhav Shah
Standalone. Standalone.
Paresh Mehta
Standalone. There are four HAM projects and Chennai Aurora which is an annuity project.
Vaibhav Shah
For HAM or BOT.
Paresh Mehta
Bot, all consolidated that is under acl. So on the standalone we’ll see only four hand projects plus one annuity project.
Vaibhav Shah
Okay, so the we were supposed to receive roughly 860 odd crore of cash on net after all the payments to sbi, Macquarie and all. So that number remains.
Paresh Mehta
Not sure how this 860 arrived at. Typically what we expect to realize is 2,500 crores on the bot projects and 2,400 crores on the ham projects which typically 5,000 odd crores of which 1600 crores would go to SP Amaquari ballots will be available for the operation which will be split into two parts. Around 750 crores and another 800 crores will be in 2526 27. Probably so around around 2000 odd crores should be between 2526 balance. We can do the math.
Vaibhav Shah
You are supposed to be 1550, 1535 crores, right? Through SDM acquiring.
Paresh Mehta
Yeah. 1526 and we’ll be acquiring jar stake also from there of 150 crores.
Vaibhav Shah
150 crores. Okay. So you mean the entire payment of this 1600 plus crores it will be done in two parts you mentioned, right? In 26 and 27 or entirely in.
Paresh Mehta
26 payment will be done in one store. The moment we realize proceeds from the BOT or and whichever happens earlier.
Vaibhav Shah
So when do we expect the resource process from both the deals from BOT and hemp?
Satish Parakh
So the first set of money infusion from the BOT deal should be happening somewhere before by 15th of July. That’s what our expectations are. 15 July to the 1st of July. 30 June is our long short date. But we are almost done with all the compliances with NHI and the litters. So we would be doing our CP compliance in the first week of June and then we will draw down the money whatever time it takes to draw down the money. On the ham front we have five projects which we expect to complete by the first week of July which should bring in approximately 1200 crores and another two assets. By August we should bring in another 400 crores.
Vaibhav Shah
And remainder by December.
Satish Parakh
Pardon?
Vaibhav Shah
Remainder will have happened by December.
Satish Parakh
Three assets will happen by December. One asset will happen in 2627. That is one which will happen in post April 26.
Vaibhav Shah
Okay. Okay. Enter. Lastly Bot will be payment entirely in 50 on the 15th of July or balance part would come later.
Satish Parakh
It would be splitted to two. Approximately 1700 crores would come by the 15th of July and 700 crores would come based on extension of traffic for the three projects Sambalpur, Belgao and Dhankuni which we expect by around 2627 completion.
Vaibhav Shah
That amount will come in FY 27.
Satish Parakh
26, 27 Yeah.
Vaibhav Shah
Okay. Okay. Thank you sir. I’ll come back in the queue.
operator
Thank you. The next question comes from the line of Janam Jane from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity. So my first question is what is the order pipeline which we are seeing currently for road, railway and on the TND end.
Satish Parakh
Hello.
Jainam Jain
Hello.
Satish Parakh
Are you able to Hear me?
Jainam Jain
Yeah, I can hear you. Right.
Satish Parakh
So railway, railway and power we expect around 2000. CR and roads, we expect around 7 to 8,000 crores. And there are other projects like water and buildings and all there, we expect another 2,000.
Jainam Jain
Okay sir.
Satish Parakh
12,000 is what is our target?
Jainam Jain
Okay. And sir, how are we seeing things improve on the energy bidding channel in terms of intense competition and margin?
Satish Parakh
So NHI competition remains rather it is growing day by day. So we are now focusing on specialized structures, some specialized jobs in nhi multi age and state level works at all other segments.
Jainam Jain
Okay sir. And sir, what is the sort of gross debt level that we are seeing by the end of FY26 on standalone basis.
Paresh Mehta
Based on monetization, our debt level should be substantially low. Below the normal debt of 2 to 300 crores though it could have surplus 2. But we could have certain projects under consideration also on the solar front. And so all said and done, debt should be substantially reduced post monetization.
Jainam Jain
Yeah. Is there any ballpark number .
Paresh Mehta
Present general working capital loan which will be existing based for. On. On practical grounds.
Jainam Jain
Okay, so that answers my question. Thank you so much.
operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Bhavin from SBI mutual funds. Please go ahead.
Bhavin Vithlani
Yeah, pardon me for the repeating. I actually got disconnected in between. What I was looking for is the timelines for cash flow received for the ham project means what is in 26, what would be in 27. And similarly for the bot projects.
Paresh Mehta
So for both the bot approximately 1700 crores and for the hand approximately 1400, 1500 crores would be happening by Q2N. Before Q2N we should be having cash flow this amount balance on the hand projects would be happening by Q4 between Q3 and Q4 except for one project of approximately 150 crores on the last and in 2627 we’ll have the balance payment for the project 450 crore.
Bhavin Vithlani
Okay, so this year is where we should get a net floor received of about 1500 odd crores. Considering the payment that should be done to the SBIM query, would that is that like a fair assessment?
Satish Parakh
Right?
Bhavin Vithlani
Okay, great. Second question is if you could just help us understand on the working capital side, given the projects that are there in the order book and we have seen increase in the working capital over the last four, five quadrants, how should one see the trajectory given the stage of execution? These projects are.
Satish Parakh
So. These split it into power and the road project Power projects have a longer working capital cycle and which was backed in FY 2425. So these are typically having larger working capital. So that trend of working capital cycle at these levels is continue for at least purely on a standard on working capital basis at the similar strength subject to monetization. So otherwise this levels will continue for 25:26.
Bhavin Vithlani
Sure. So the thousand odd crore working capital debt which has been there in your assessment, given the 10% growth in the execution you are anticipating, would that be higher, lower, Similar?
Satish Parakh
Should be similar in this thousand crores should be able to manage for 25:26.
Bhavin Vithlani
Great. And in your assessment where do you see the trajectory of the margin given the mix that you already have?
Satish Parakh
So as indicated we will for 2526 we should be ending up with approximately the range of 10, 10 and a half percent margin.
Bhavin Vithlani
Okay. So we should be seeing positive cash flow from operations on the standalone entity. Leave aside the the asset monetization that we are anticipating.
Paresh Mehta
Yeah, definitely. I mean keeping in mind the 2425 book operating cycle being negative, but I’m sure for 2520 it will be a positive one.
Bhavin Vithlani
Great. In that case, is there a thought process of any one time dividend or buyback? Given the large cash flows that we should be seeing towards the end of the fiscal year.
Paresh Mehta
That definitely is in good visibility. I think cash on the balance sheet would be better utilized by sharing it with investors and for newer business.
Bhavin Vithlani
Okay. Yeah. Great. That answers my question. Thank you so much.
operator
Thank you. The next question comes from the line of Vasudev from Noama Wealth Management. Please go ahead.
Vasudev Ganatra
Yeah. Thank you for the opportunity sir. So sir, in your previous question you mentioned that we have classified NIR project also in held for sale. So can you give some details like know where are we in the process of monetization of this asset and also anything on Java Naika.
Satish Parakh
So on both these Chennai A and Jawara Nayak, we had a process of sales concluded in the past years but could not go through due to certain restrictions from the on the transfer of shares which has been addressed in Chennai order already and in jf Javaranagar is still approaching the government to get the permission of transfer of shares on the Chennai order. We have. We have already scouting for investors who previously were interested and new investors who are good to look at on this project. So we expect that in a year’s time we should get an offer for such project.
Vasudev Ganatra
Okay sir. And sir, can you give me the pending equity which is to be infused in the hand project?
Satish Parakh
So in the hand projects presently we have approximately 367 crores of equity pending. Which includes 225 crores of equity for our last Bohndi project which we have won where FC is due anytime.
Vasudev Ganatra
Okay. And so how much are you planning to infuse in FY26, 27 and 28?
Paresh Mehta
So in FY25 26 we expect to use 250 crores and balance 112 in 2526.
Vasudev Ganatra
Okay. And so for this 12,000 crores of order intake that we are planning for FY26 what is the kind of bid pipeline that we are looking at? And if you can give some makeup between different segments.
Satish Parakh
So build pipeline. If you see MRTH NHI they’ll throw around 75,000 to 1 lakh crore. And if you see railways, it’s around 25 to 30,000 crores of build pipeline. Power is another sector where lot of investments are coming in. That should throw up around 10 to 15,000 crores. Railways is another segment. It’s very difficult to gauge but they intermittently come up with good order book. There are other sectors where we look at is buildings in water and Spartan. So overall we are trying to see that 7 to 8,000 crores, roads, 2 to 3,000 crores around railways and balance are just other sectors.
Vasudev Ganatra
Okay. Sure sir. And lastly sir, what is the capex that we did in Q4 and our target for FY26?
Satish Parakh
Target? We have already told we will be around 10% growth this year.
Vasudev Ganatra
The CapEx target.
Satish Parakh
CapEx will be around. 200 crores with all segments.
Vasudev Ganatra
Okay. Sure sir. That’s it from my side. Thank you.
operator
Thank you. The next question comes from the line of Parikshit Gupta from Fair Value Capital. Please go ahead.
Parikshit Gupta
Thank you very much for the opportunity. I want to ask about the monetization again and sorry for the repetition. I just wanted to make sure I have it super clear. So about the BOT projects, is it not correct that we are getting an enterprise value of 5700 crores out of which 3200 crore, almost 3200 crores would directly go into debt. And the rest 2500 crores that we are talking about will be equity received by Ashoka.
Satish Parakh
That is true. That is true.
Parikshit Gupta
So I mean considering this.
Satish Parakh
Yeah.
Parikshit Gupta
Sorry for interrupting but considering you know this number along with the HAM projects of 2324 crores the total amount comes to around 8000 odd crores. And even after considering the SBI Macquarie stake purchase which is 1526 crores and plus 150 crores of the Jorah road. The net debt levels considering the cash in hand right now on a console level along with no excess, no other equity infusion comes to be around zero. Is that correct? In my understanding?
Paresh Mehta
No, no. But the debt which you’re talking about would be would go along with the SPVs. The BOT SPVs. So the consideration which you are getting of 2500 is net of all debt. So when we are talking of when we have spoken of approximately 3,000 odd crores debt on the five BoT projects today it is 1945 plus NHI debt of around thousand crores. Totally 2,900 crores of debt which will go along with SPV to the new buyer. So that’s not a payment which I have to make. It will be. It will going along. What I will get is 2500 crores net which will be split into 1700 crores before in 2526 and 700 odd crores in 2627.
So this itself will fetch me as you said 2500. Again what you said was 2400. So we are total of 4900 of total equity consideration of which say 1600 will go into payment of SBM of curry. So that is what is net net available at the end of 2627 including 750 crores and everything. So 4900 minus 1600 minus any capital gains tax would leave us with 3000 crores of net cash.
Parikshit Gupta
Okay, just one follow up on this. The 2900 crores debt with bot, isn’t that currently sitting on the balance sheet of Ashoka Bilcon as console?
Paresh Mehta
No, no, no, no. That is sitting on console. Yes, but it is at the SP11.
Parikshit Gupta
Okay, I will probably take this up offline. Just one more question. Is there any strict hard deadline to the SBI Macquarie sale? Because I believe earlier in FY22 quarter three there was also again the same plan of selling the BOT projects but it did not go through. And at that time the SBI Macquarie exit was around 1200 crores of value which has gone up now. So in case by chance this sale of ham and bot projects are not executed by the end of June as we stipulated June or July is Macquarie SBI Macquarie deal also stated to maybe again push forward.
Paresh Mehta
So definitely the Macquarie deal is a consequence of the sale proceeds. From that perspective the sale is consequential. But from an amount perspective it will be a bilateral discussion. If there’s any change as of date this remains.
Parikshit Gupta
And Is there any hard deadline to the SBI Macquarie deal? For example they telling you if we are able to pay a 1526 by end of July or end of August then this deal stands otherwise we will have to revalue it.
Paresh Mehta
I don’t. I mean I believe most of these all the monetization happening so does not the question doesn’t arrive. I sure that these will go through by July. Definitely they will get paid off.
Parikshit Gupta
I mean a six sigma event.01% possibility.
Paresh Mehta
It will be mutually discussed. Definitely they are a partner with us so we mutually decide what’s the next course of action. But I’m sure they’re also looking out. For exit.
Parikshit Gupta
So there is no hard deadlines here. It’s all understood because of the monetization, the cash flows and then finally being able to execute the asset purchase stake purchase. Okay, this is helpful. I will probably set up some time personally but thank you again for answering my questions.
operator
Thank you. The next question comes from the line of Vaibhav Shah from GM Financial. Please go ahead.
Vaibhav Shah
Yeah, so my question is answered. Thank you.
operator
Thank you. The next question comes from the line of Hardik Gandhi from HPMG Shares and securities. Please go ahead.
Hardik Gandhi
Hello sir. Thank you for taking my question again. Just wanted some clarification. I know this was discussed and now I understand why the borrowing levels are showing less because we’ve shifted our borrowings from the borrowing tab to the liabilities held for sale, Is that correct?
Paresh Mehta
Yes.
Hardik Gandhi
So how much of this will are we expecting to reduce by next year of 9,400 which is showing in liabilities held for sale.
Paresh Mehta
So by the end of next year on March 26th we expect approximately 4,500 crores of debt to go out of the balance sheet from approximately 5000 odd crores.
Hardik Gandhi
And have we considered the in the debt new debt which we will take for the new orders or upcoming projects and everything on that level or is it just standalone calculation?
Paresh Mehta
So it is presuming that with the current estimate of turnovers and the requirement of capital cycle remaining similar, the debt will remain same may not, will not go up and if the monetization happened it would definitely go down.
Hardik Gandhi
Understood. So just coming from a different angle. So considering we are expecting the debt will remain the same but on the basis of this that we’ll have a 5,000 crore reduction. So do you anticipate a reduction in the finance cost to the span of 400 to 450 crore given that we are borrowing at a 9.5%. So do we expect a Reduction in the borrowing cost. So the finance cost to go down by 400 crores next year.
Paresh Mehta
9.5 is the cost of borrowing at the standalone level for the working capital debt which will typically remain so on a debt of approximately thousand odd crores this is what number will finally transpire. Plus a couple of more projects like Basmanpur which will continue the balance sheet up to 2627. So it’s a various debt which will come out but definitely the interest cost in 2627 should substantially go down including 2526.
Hardik Gandhi
Okay, understood. So if, if I were to assume on a console basis what would be our cost of borrowing then like if not on a standalone but just on a console basis for the. At least for this 9400 which is held for sale.
Paresh Mehta
So on the standalone level this would be in the range of eight and eight. Eight and a half. Eight and a half percent.
Hardik Gandhi
Okay. On a console level. Yeah. So we. So that’s what I’m saying. So if we are expecting to reduce our 5,000 crore debt by next, let’s be conservative and say 4,000 crore and with the 8 and a half percent we expect our finance cost to go down by roughly on a ballpark number of 300 crores, would that be correct assumption?
Paresh Mehta
Yeah.
Hardik Gandhi
Okay. Understood, Understood. Thank you so much. Thank you.
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Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line. Participants please press star and one to ask a question. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to the management for the closing remarks.
Paresh Mehta
We thank everybody for joining this conference. Call for the Update on the Q4 and FY25 numbers. If you any follow up questions are there. We are also available on my personal number which is available on the presentation as well as HCA or industrial. Thank you.
Satish Parakh
Thank you. Thank you everyone.
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Thank you sir. Ladies and gentlemen, on behalf of Nirmal Bang Equities Private Limited that concludes this conference. Thank you for joining us and you may now disconnect your line.
Satish Parakh
Thank you. Thank you, everyone.