Capacit’e Infraprojects Limited (NSE: CAPACITE) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Rohit Katyal — Chairman & Executive Director
Analysts:
Unidentified Participant
Darshan Jhaveri — Analyst
Vansh Solanki — Analyst
Shreyans Mehta — Analyst
Vasudev — Analyst
Jain Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Capiside Intra Projects Limited Q1FY26 earnings conference call. 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 this conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference has been recorded. Before we begin, a brief disclaimer. The presentation which Capesight Infra Projects Limited has uploaded on the stock exchange and the website including the decisions during this call contains or may contain certain forward looking statements concerning Capacite Infra Projects Limited business prospects and profitability which are subject to several risks and uncertainties.
And the actual result could martially differ from those in such forward looking statements. I now hand the conference over to Mr. Rohit Katian, executive Chairman, Capricide Intra Projects. Thank you. And over to you, sir.
Rohit Katyal — Chairman & Executive Director
Yeah. Good evening. On behalf of capacity Intra Projects Ltd. I extend a warm welcome to all participants on our Q1 FY26 earnings conference call. Joining me today are Mr. Rajesh Da, CFO, Mr. Alok Mehrotra, Head of Finance, Mr. Nishit Pujari, Head Accounts and Direct Taxation and our Investor Relations team from Marathon Capital. I trust you’ll have had a chance to review our results. The presentation and press release have been uploaded on the stock exchanges and are also available on our company’s website. Let me begin by saying that FY25 was a transformational year for Capacita Infra Projects Limited. We achieved a record performance across multiple parameters, both operational and financial which has laid down a strong foundation for future growth.
This momentum has carried Forward into the first quarter of FY26 where we have once again delivered a robust performance despite some temporary challenges during the quarter. While Q1 was partially impacted by seasonal and cyclical factors such as EID festival related labor migration and the early arrival of monsoon of Aaric presence. Our results reflect our resilience.
operator
Sorry to interrupt, sir, we are unable to hear you.
Rohit Katyal — Chairman & Executive Director
Is the voice clear?
operator
Yes, but your voice went off quite a minute ago. You can repeat, sir.
Rohit Katyal — Chairman & Executive Director
Financial oversight and strategic decision making. We have continued to maintain the health of our balance sheet and ensure operational continuity across key projects.
operator
Hello sir. Sorry to interrupt. You are unable to hear you again.
operator
We will have to connect again.
Rohit Katyal — Chairman & Executive Director
So there is some problem in the line? I mean it was clear so far.
operator
Okay, sir. Ladies and gentlemen, please be on hold while we reconnect the management line. Thank you It.
operator
Sam. Ladies and gentlemen, thank you for being on hold. The line for the management is reconnected. Thank you. And over to you sir.
Rohit Katyal — Chairman & Executive Director
Apologies friends for the. Through disciplined project management, prudent financial oversight and strategic decision making we have continued to maintain the health of our balance sheet and and ensure operational continuity across key projects. These qualities remain central to our ability to create sustainable value for all our stakeholders. Looking ahead, we expect execution to ramp up significantly in the second half of.
Unidentified Participant
Current financial. Activities picks up after the. Monsoon. And initiatives improved productivity and margins. Going forward over the past few.
operator
Ladies and gentlemen, the line for the management is disconnected. Please hold while we reconnect them. Thank you. Rami. Ladies and gentlemen, thank you for being on hold. The line for the management is reconnected. Thank you. And over to you sir.
Rohit Katyal — Chairman & Executive Director
Apologies again. I think everyone has seen our presentation. I would therefore due to the loss. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone phone. 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 Darshan Javeri from Crown Capital. Please go ahead.
Darshan Jhaveri
Hello. Good evening sir. Thank you so much for taking my question. Hopefully I’m audible.
Rohit Katyal
Yes, please go on.
Darshan Jhaveri
Yeah, yeah. Hi sir. Sir. So sir, I just wanted to you know ask. We mentioned in the presentation that you know we see robust revenue growth from H2 but as per our, you know, growth of 20 CAGRADE. So in the current year in the nine months if to reach 20% we’ll have to do around 25, 27% of the growth. So are we, you know, how is it looking on track for us? Will we be able to do 20% this year?
Rohit Katyal
Of course, there’s no doubt about it. So the quarter one generally should have been better by 75 crores. We had severe monsoon starting in end of May getting into June. While you know that in the last past five to six years there’s hardly been any monsoon during June month. So the last quarter was impacted and therefore you will have strong momentum in the current quarter as also because it’s not only shell and core business that we do, we do projects which are finishing and interior works are not hampered by monsoons as such. And therefore we do believe that without an eye out of Doubt the company will achieve its full year’s guidance.
Darshan Jhaveri
Okay, okay, that’s really great to know, sir. And so I just wanted to know, despite, you know, us, you know, giving some, you know, salary increments are EBITDA was able to, you know, beyond even more than what a guided range was there. So is there some specific product mix or there’s some one off or, you know, these are our optimization efforts that, you know, that led us to have such a great margin, sir.
Rohit Katyal
Daschil CD Let me be reiterating that our full year guidance remains at 16.5 to 17.5. We have done better than that in most quarters, especially over the last five to six quarters. Having said that, I believe that a construction company’s performance should not be seen or judged by 1/4. We do believe that over the 12 months ending 31st March 26th, the company will perform better than what it has performed in the past. Having said that, there is no one time adjustment to anything. If you see on absolute terms our finance cost has come down with increase in revenue, it will further drop as a percentage to top line.
Similarly, even after giving increments, if you are achieving the full year’s target as a percentage, that too will fall. So there is no reason why the company should not achieve or surpass the EBITDA guideline for the full financial year. It would not be appropriate for me to mention about one particular quarter or previous quarter or the quarter prior to that full year’s guidance will be maintained or bettered.
Darshan Jhaveri
Okay, okay, that’s, that’s really great to hear, sir. I just wanted to know like, how do we see the overall environment right now? Like we are sounding quite bullish on it, but on ground like is there, you know, some issues that we are facing or you know, just wanted to know how the macro environment to you is.
Darshan Jhaveri
So after all of us having seen Covid and the NBFC crisis in 2018-19, while we are optimistic, but we are cautiously optimistic so we will continue to work for only those clients which suit our requirements are ready to give that little bit of premium for in exchange of quality construction to be done on time, that’s number one. And that is reflected in the private sector client list which we have number one. Similarly, it goes for government. And when we speak to you about optimism and our targets, obviously we are talking about on the basis of the existing order book, which is in excess of 11,000 crores, excluding the MADA order which has to be added, which means you have a visibility of three Years or more very clearly.
So the optimism comes from these parameters and the way the company has been executing. Hope to have answered your question.
Darshan Jhaveri
Yeah, that helps me a lot. If I may, can I ask one more question sir?
Rohit Katyal
Yeah, please go on.
Darshan Jhaveri
Yeah. Even our order info has been quite good sir in the first quarter itself. So I just wanted to know what is our current bid pipeline and like what do we envisage? Like in FY26 our order inflows can be. Sir.
Darshan Jhaveri
So we have already given a target for the current full year which is about 4,000 to 4,500 crores. And we do believe that we should be able to surpass that Number one. Number two bid pipeline is very strong. However, there is an opportunity after a long long time to pick and choose which the company has been successfully doing over the past four to five quarters.
Darshan Jhaveri
Okay. Okay. Thank you so much sir. Thank you for answering all my questions. All the best. I’ll come back and let you. Thank you.
operator
Thank you. The next question comes from the line of one Solanki from RSPN Ventures. Please go. Yes, Mr. Solangi, you can proceed with your question.
Vansh Solanki
Hello. Am I audible?
Rohit Katyal
Yes, please.
Vansh Solanki
Yes. So last quarter we have changed our accounting policy. And you have mentioned that 12 crore rupees of a profit recognition was before the under the new accounting policy. So how much of that portion of profit has accounted in this worker? And my another question is that how. How much of. Is there any differ profit which is arise in this quarter which is before in a quarter two.
Rohit Katyal
So both your questions are the same. Number one, we had referred to two projects. One was Signature Global and the other was nbcc. Signature Global is in two phases. So phase one under execution we have started recognizing profit because the threshold has been crossed as far as NBCC is concerned we should start recognizing profits from quarter two onwards. That’s the current quarter.
Vansh Solanki
Okay. So you have 12 crore of profit is recognition is pending. So can you give a quantum that how much of recognized in this quarter?
Rohit Katyal
So I don’t have a project specific project wise breakup in front of me. I will request our IRA agency to reply to your question by mail, sir.
Vansh Solanki
Okay, no problem. And one more is that you have mentioned that there is a decline because of Monsoon and Ed. Hello. Can you hear me?
operator
Yes, I can hear you.
Vansh Solanki
Oh hi. My question was that what was the. Normalized run rate of monthly revenue you are at?
Rohit Katyal
If you were to exclude let’s say vacation holiday impact and the monsoon impact maybe what was the run rate in July or whichever way you Want to adjust for normal. Normalization. You see that the revenue targets are given for the full year taking into consideration the heavy monsoons for over two to two and a half months in Mumbai where ideally generally on our experience you lose 15 to 21 days every year. Similarly during winters you lose 10 to 15 days due to NGT. And there are stoppages in northern India including NCR. So the average obviously we just.
Since we have done 599 crores the average is close to 200 crores which we seek to improve in quarter two and improve substantially starting quarter three.
Vansh Solanki
Right. So given.
operator
Hello Mr. Tiwari, we are unable to hear you. You can hear me. Hello.
Unidentified Participant
I can hear you but I think you can’t hear me.
Unidentified Participant
Okay. Okay. We are. Yes sir, we can hear you.
operator
Yeah.
operator
The current participant is disconnected. We will move towards the next question. The next question comes from the line of Srians Mehta from Equitas. Please. Word. Yeah.
Shreyans Mehta
Thanks for the opportunity. Sir. How should one look at the execution from our Citco and Mahara projects?
Rohit Katyal
So it’s the same as I mentioned in the last earnings. Citco momentum continues and Mara momentum will increase from quarter three onwards. Because the same residential buildings, six of them have been allotted and work on three of them has started from piling perspective and therefore the execution that is the actual structure construction will start from quarter three. So we obviously look at a very strong momentum in all our three big projects. Cidico, NBCC and Mara.
Shreyans Mehta
Any numbers or if you would like. I mean what is our internal target. For Cisco, Mara and NDCC in this? Can you please repeat the question? The. The breakup if possible. You know how much are we targeting.
Rohit Katyal
From Citco, Mahara and ndc? Absolute number. The absolute number basically. See we are committed to give more than 700 crores to 800 crores in circuit for the remaining period. All right. We are committed to do about 350 crore as a subcontract. That is in. In the books of Capacity Intra Projects Limited in Mada. And obviously we have to go to an average billing cycle of 60 crores from October onwards in NBCC. So these are the broad numbers. You can multiply and you get the yearly number.
Shreyans Mehta
Sure, that’s helpful. The second question is in terms of. Our order book how much would be a fixed price contract and we will price contract. We don’t do any work on fixed price contract. Even NBCC would be variable price contract.
Rohit Katyal
NBCC has a price escalation clause up to 3% every year. The contract is of two years. That is 3% is sufficient to take care of the movement in commodities.
Shreyans Mehta
Got it. Got it. Got it. Sure. And one last question from myself. How much capex have you done in. One two and what’s the outlook for 26?
Rohit Katyal
The CapEx in the Q1 has been 34.03 crores. And the full year we look to this in the current financial year go to approximately 75 to 80 crores.
operator
Thank you. The next question comes from the line of Vasudev from Nuwama. Please go ahead.
Vasudev
Yeah. Thank you for the opportunity. So sir, as you mentioned on Marang Satko similarly can you give us global as well. You know what execution run rate are we currently doing and how we plan to pick it up in Q2, Q3 onwards.
Rohit Katyal
So you see that in the current month that is July, August we our target was 15 crores. However it’s been pouring very heavily in Delhi at the moment in time over the last few days. So we do believe the momentum will pick up from next month onwards in signature Global at full throttle. Being the shell and core business it should give you about 20 to 23 crores of revenue per month.
Vasudev
Okay. And sir, are we L1 in any orders currently?
Rohit Katyal
So in private sector There is no L1 concept. We are negotiating some very good orders. We have added Group of UK to our portfolio already. And we do believe that over the next month or so we should be in a position to announce a few projects with our existing clients in the private sector. In the government sector we continue to bid for clients like iit, NBCC and so on and so forth. And in government as you are aware while our target project size is about 500 to 600 crores you still have competition and you cannot be sure till the results are out.
So yes, we have bid for the projects. To sum up private sector you will see a little bit of growth over the next two months which would normalize to 60, 70, 30 ratio over the year end.
Vasudev
So that’s it. Thank you.
Rohit Katyal
Thank you.
Unidentified Participant
Thank you. The next question comes from the line of Shivam Ravankar from Esk India. Expansion Solutions LLP please. Word. Hi.
Unidentified Participant
Hi Rahul. Can you hear me?
Rohit Katyal
Yeah. Yeah.
Unidentified Participant
Yeah. Yeah. Hi.
Rohit Katyal
Hi Rohit.
Unidentified Participant
So my question was what. What would your outlook be on data centers, Rohit? Because we are seeing some very strong momentum around that area and some great work with bsnl. So do you have something in line already or are there any private players there or is it mostly government sector?
Unidentified Participant
So it will differ as far as we Are seeing a huge traction. Am I audible? Yes.
Rohit Katyal
Yes you are. Yeah. We are seeing a very huge traction both in data centers, in private, more so government as well and also in the building space. We participated in Foxconn. Unfortunately we couldn’t match the commercials. And we will continue to participate in such projects going forward as well. So as far as data centers is concerned, yes, there is opportunity. The last project which we did has been recalled and we are a qualified contender in that. And so we will be re participating in that project. As far as the private sector side is concerned, the electromechanical part, the client tends to do themselves at times.
So when the client tends to do that themselves then our interest in such project falls. Because our interest is not to do the only shell and core and finishing work. The interest in data center only swells the margins when you are doing the entire electromechanical part for which your capacity is well equipped. So it will depend on case to case basics. We are there present in all these sub segments of building construction. And whichever opportunity gives and matches our margin profile requires lesser of labor as a resource. We will definitely look into it.
Unidentified Participant
I see. And any guidance on what, what portion of your, you know, 3,000 plus crore orders that you’re looking to add in this, you know, financial year. What, what portion of that could be possibly data centers.
Rohit Katyal
So I cannot comment on data centers alone but I do believe that we will add. Add something in healthcare. We will add. Most of it will come from mixed use. So because you see there is a remarkable shift in Mumbai where you are seeing a lot of mixed use construction happening in south Mumbai as well. We are expecting to get repeat orders. The latest order from Indonesia also is a mixed use order with 20 floors comprising of commercial and 20 of residential. So you will see more such construction happening in Mumbai and such mature geographies.
Unidentified Participant
I see. Okay. Okay. Yeah. One more question, Rohit. And that was, you know, there was some profit recognition pending from the Maldives and Tata project if I remember correctly.
Rohit Katyal
So Tata projects last year we had recognized close to 20 crores or thereabouts. And accordingly it will be recognized at the JV level and we will get our share. But yes, that share will rise substantially from the next financial year because the pre operated expenses would have been written off.
Unidentified Participant
Okay. Okay. Okay. Okay. Okay. Yeah, sounds good. That’s all from my side. Good luck. Thank you very much.
operator
Thank you. The next question comes from the line of Pradeev Nalada from flute Aura Private Limited. Please go ahead.
Unidentified Participant
Mr. Katyan. Good evening. Am I Audible.
Unidentified Participant
Good evening.
Unidentified Participant
Yes please sir, we guided for around 120 crore of recoveries during the year. I think we’ve recorded around 10 crore of other income for this quarter. So is this mainly coming from FD interest and scrap sales or have we recorded any of those recoveries also in the 10 crores?
Rohit Katyal
No, the recoveries have not been recorded. The target is 65 crores out of which in the second quarter the company has sold properties of 19.1 crore, has entered into a settlement agreement for which demand draft is lying with the solicitor. So we believe that second quarter there will be a recovery of slow moving debtors and non core assets totaling to approximately 27.27.5 crore which would mean nearly for 35 to 40% of the full year project.
Unidentified Participant
Got it? Understood. And I think the previous participant touched upon this. But we recorded somewhere around 22,23 crore of profit from the JVs in the previous financial year. Could you tell what kind of ballpark number we’re aiming for in FY26 for.
Rohit Katyal
This percentage completion it will be similar to what we recorded again our partner Tata Project limited As a policy the profits are not recognized up to 10% and therefore once we cross the threshold of 10% last financial year the profitable profits were accrued. Profits accrue at two levels at the TCC Construction Private Limited level and then Tata projects capacity LLP level. So it will continue to accrue in the same fashion this year and over the next four to five years. But yes, the momentum will increase from next financial year once the pre operative are totally written off.
Unidentified Participant
So if the momentum is increasing next financial, can we expect similar numbers as the previous financial year in FY26?
Unidentified Participant
Absolutely. Just one last question from my end. You mentioned that the early monsoons had hindered some part of the progress we would have liked to make this quarter. Hopefully if you know given the early onset of the monsoon it’s also let’s be hopeful that we there’s an early the Tron as well. So I read somewhere in the PPT that we’re planning to really push the pedal in the second half of the year. But is it possible to make up some of the lost progress in Q2 itself in the monsoon receipts earlier?
Rohit Katyal
We are hoping the same. We never expected monsoons to hit Mumbai on 27th of May 2025. We did not have monsoons in the whole of June over the last four, five years and therefore we used to take October as a monsoon period. So since the onset has been early, we can only Believe that the early. But having said that we do believe that there will be year on year increase in quarter two. And there will be substantial year on year and Q on Q increase in quarter three. That we are absolutely sure about.
Unidentified Participant
Noted.
Unidentified Participant
Sir. Sir, one last one question. The 12 crore be deferred in profit should from the previous quarter has any similar deferred profit balance been created for the orders we’ve received in this period? Keeping aside that one but any fresh. Balance we haven’t started any new project. Because the project has just come. All right. The projects will start giving revenue little bit in the second quarter and more so in quarter three. And you see the only the cost contract size is let’s say 500 crores. We don’t see that it takes anything more than four months to start recognizing the profits. It’s a practice which we have bought into place. And we will continue with that. Okay. Thank you very much.
Rohit Katyal
Thank you. The next question comes from the line of Hardik Mehta from Serious Talk. Please go ahead.
Unidentified Participant
Can you please speak with the handline handset please?
Unidentified Participant
Yeah. Hi sir.
Rohit Katyal
Am I audible now?
Unidentified Participant
Yeah, please go ahead.
Unidentified Participant
Yeah. So just wanted to know. In your presentation you have mentioned work delays due to eat.
Rohit Katyal
But Eid I feel is a natural.
Unidentified Participant
Phenomenon and it shouldn’t have been factored in earlier. So if EID is impacting Q1 won’t.
Unidentified Participant
Bihar election similarly impact Q3 and other festivals impacting Q2? So do you feel full year guidance will be achieved?
Rohit Katyal
You see that the migration this time was not experienced earlier. Now what happens is that the festivals which come in April like the farm cutting festival or basically the yearly agricultural cutting for which a lot of migration happens. That’s always factored in our system. Okay. We don’t see Dr. Elections impacting much. Because a lot of workmen now come from West Bengal, Orissa, Ubil and also Bihar. So I don’t major impact happening at the moment. We are close to 995 labor requirement across our project sites. We have adopted very innovative ways of recruiting workmen. Improving further improving their work conditions.
Adding lunch, dinners, breakfast to their as amenities being provided to them. So we are very confident that the whole year target will be achieved like was done last year.
operator
Thank you. The next question comes from the line of Dhruv Dashani from Next step advisors. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Rohit Katyal
Yes, please sir.
Unidentified Participant
So this year when your new auditor came I read about the fact that 63.61 crore and another 11.55 crores. They said that the Recovery of that that is shown in trade receivables. But the recovery is questionable. So can you put some more light on that?
Rohit Katyal
So this is coming from EY over the past past five quarters. You may have a look at that EY in quarter four which was their last quarter audit for financial year 2425 has mentioned 66 crores. But also have mentioned along with that the properties available with the company to cover the 66 crore which are in excess of 100 crores. So why 66 crores has not been received? The company to various agreements, agreement to sale and so on and so forth has properties close to in excess of 100 crores to cover the 66 crores. I hope to have been explained the questions.
Unidentified Participant
Yes sir, thank you.
operator
Thank you. The next question comes from the line of Rahul Kumar from Vicaria. Please go ahead.
Unidentified Participant
Yeah. Hi.
Unidentified Speaker
Sir, I think you mentioned it before but for the second half of this year assuming your 20% growth target, would it be fair to say that you can record 1500 crore plus kind of revenues? You can record what? 1500 crore plus kind of revenues in second half? We have to and there is no doubt that we won’t. Because all the projects what we are discussing and the company already has in its portfolio are fully manned and operational. And therefore with the targets which we have given to the client it’s only imperative that we have to achieve those targets.
And those targets are much higher than what we have given as an indication to our investors. Okay, okay.
Unidentified Participant
And sir.
Rohit Katyal
Second question is I think in the last quarter when you have changed the accounting norms, I think you mentioned some costs which are booked and reven profit because related to that was not booked. And you mentioned the figure of 95 crores. Yes, that’s right. What is the tax figure for this quarter? What is the tax figures? No, what is that cost figure which you have not booked the profit related to that this quarter? So I just mentioned that we have started recognizing profit on Signature Global. This project is in two phases, 600 crores into two.
And therefore the phase one profit has started to be recognized. Number one, NBCC has not been recognized. However, the project will achieve that 10% level of more than 100 crores in the current quarter. And therefore we shall start recognizing profit from the current quarter itself. New projects which will start in quarter two are very minuscule because we have just received them. The revenue, meaningful revenue will only be recognized or meaningful cost would only be expended from quarter three onwards. Okay, okay.
Unidentified Participant
Okay.
Rohit Katyal
And for the orders which you have won this quarter and the previous quarter. How different are the margins and payment terms versus let’s say the project which you would have won in the, let’s say FY25. No change. If the payment terms are not better, we would like to remain away from those orders every quarter. I have said and I reiterate that the quality of clients and the commercial terms cannot change. We have burnt our fingers during the NBFC crisis and the COVID aftermath and a substantial amount of our money got stuck. We would not like to do the same mistake again.
Okay? Okay. And for this quarter itself, what would have been the operating cash flow generation.
Unidentified Participant
And you know, the movement in the working capital versus let’s say Q4FS identified.
Unidentified Participant
So the details are not in front of me. However, I will tell my IR to give you the details via separate mail. Hope that will be fine. Sure. Thank you. Thank you.
Unidentified Participant
The next question comes from the line of Tejas Thandelwal from Prudent Equity. Please go ahead. No sir, your line is not clear, sir.
operator
So am I audible now?
Unidentified Participant
Yes, sir.
Rohit Katyal
Yeah, so I just wanted to understand sir that in the last couple of quarters the company has not been able to meet its guidance and each time there, there have been different reasons. Like. Like few quarters back there was one time expense and then in Last quarter in Q4 there, there was certain change in revenue recognition and then in this quarter there is early monsoon and even this related labor expense. But we have seen it in previous year also but we still managed to grow. So you don’t, you don’t sound very bullish as you were sounding earlier sir, you have also reduced your guidance and.
Rohit Katyal
Yeah, I’m sorry sir, I don’t agree with that. We guided for 2250, we did 2400 crores last year. I have maintained that quarter on quarter should not be compared for a construction company. Whatever full year guidance from ebitda, pat, cash, pat top line was given has been achieved. All right.
Unidentified Participant
Yeah. A few questions that you were guiding for 25% growth. 25.
Rohit Katyal
Minutes. One minute sir. I again repeat that we have given a guidance last quarter for the full financial year. And I would appreciate the guidance being looked at the full financial year. The company and the management has put serious efforts and we have more than achieved the last year guidance on all parameters. For the first time we have crossed 200 crores in PAT on consolidated basis which was a 65% increase over the corresponding period of last year. That was of 24. Now if that is not growth and that is not Me sounding bullish, I don’t know what is then.
Rohit Katyal
No, I am not talking about last year. So last year we grew in first nine months but in the last quarter also. So you had given guidance for 700 crores for last quarter. Then we were not able. We didn’t able to meet that guidance. Then there was some accounting change in revenue recognition. And then this quarter also we didn’t grow but. And this quarter also there is exclude of this early monsoon and this easily related labor issues. But what I’m saying, what I’m trying to understand is there was the heavy monsoon last year also. And there was last year also.
But we still managed to grow.
Rohit Katyal
I had not followed your question sir. Because I don’t understand. Last year there was no monsoon in June. It’s a matter of fact this year the monsoon has onset was on 27th of May. Again this is a fact. However having said that I do not see when a company is making more than 7.53% on PAT levels and we say there is no growth. I mean it’s surprising. Last year yes, last quarter was 9.24. But we are again and again guiding for the full year. I will not be able to guide quarter wise. So if 7.84% net profit after tax is low.
I have no comments to make sir.
operator
Thank you. The next question comes from the line of Jain Shah, an individual investor. Please go ahead.
Jain Shah
Yeah. Thank you for giving opportunity. There are couple questions.
operator
We are unable to hear you Mr. Shah.
Jain Shah
Yeah, one Is it better?
Rohit Katyal
Yes, please.
Rohit Katyal
Yes, hello. Yes sir, you can proceed.
Unidentified Participant
Yeah. Yeah. So there are a couple of questions. One is my question is regarding the working capital. I think last year if you see. Is a substantial improvement increase in from.
Rohit Katyal
Close to 5 crore to almost a thousand crores. My question is more is regarding this 70 year cash flow. How does it be like a. What extent that recovery is designed. When we are looking at. Let’s say you’ve been waiting for working capital improvement all over the last two, three years that the business will grow but the working capital will also improve the working capital base. If you can give a little understanding as to how far that journey has been on track. And second is when you’re looking at a working capital of different segments especially the private clients and the public sector company.
Is there a different kind of in the working capital? Second is on the working on the workers. Basically I think you. I think you have been alluding to the shortages of workers. And many industry players have also been alluding to the same problem. My question Is is the problem within the estimated limits that you have seen or is it more than what? Probably because I think when you are looking at a growth ahead this could be a real challenge in terms of managing your requirements. How are you for next two years when you’re looking at your growth journey on this, is it going to be a bigger challenge in terms of managing your margin and growth? That would be the two questions.
Rohit Katyal
Yeah, very good questions. Enjoy it. Lovely questions. So number one, the working capital which was on excluding retention 172.44 days as on 31-3-25 has not increased in quarter one. The total collections in quarter one as against the revenue of 599 crores today at 543 crores which is a significant improvement. Number two, you have seen increase in debtors and therefore in quarter four of last financial year and therefore this improvement in collection as I speak to you today, our collection is close to collection is close to 756 crores. So there is a substantial improvement in collection over the last financial year where after a long time after adjustments we generated 54 crores positive cash flow.
All right. We do believe that this positive cash flow will improve substantially in the current financial year and that can only improve with collections going forward. And the very fact that a substantial portion of WIP or contract assets has got converted into debtors, the improved collections are only a reflection of that diploma or contract assets getting converted into debtors. That’s point number one. Point number two is that working capital is different for EPC projects and non EPC projects. Non EPC projects will have a lower working net working capital. Whereas EPC projects the payment could be front ended which is never the case in government is generally back ended.
So you execute the work and the payment comes due on a monthly basis on achievement on a particular milestone. All right, so this is a difference between an EPC and a non epc. Non EPC DOQ rate tenders. So your answer to your question is yes, the working capital cycle will be more elongated though there is substantial scope of improvement as I’ve already always mentioned and reiterate that as opposed to a BOQ or a non EPC project. Your next question was in relation to workmen. Is that an issue? It’s a big issue. We are all right from Lahoren and TOBRU or whether it is Tata projects, whether it is any other building construction player or for that matter any big intra player is saddled with this issue.
The task with what they are doing today is trying to go into composite construction with use of composite steel so that the manpower requirement can come down. Trying to take a good mix of projects between commercial and residential because the requirement of manpower or blue collar is much higher in residential as opposed to commercial. So this is a challenge and we are all not facing this challenge from today. We are facing this challenge from the last two years. Had this challenge not been there, we would be discussing growth of 30, 35% if not more. But this challenge is there because there is a huge demand from Middle East.
There’s also demand coming in from Eastern Europe. And therefore it is not easy to just lap up all the projects that come your way. You have to look, analyze and then grow. So the growth targets, what we have given have factored this peculiar problem which we don’t believe is going to end in a hurry. It will take time. While we have a lot of young population, we are in terms of trained population in this segment of manpower requirement. So we will do whatever innovation it requires and we will do whatever it takes to achieve the targets.
But having said that, targets could have been much higher had the labor availability been not a question mark. So answering your question that workmen will not impact our revenue target but the revenue target could have been much higher had this challenge not been there. Hope to have answered.
operator
Thank you. The next question comes from the line of Harshil Kothari, an individual investor. Please go ahead.
Rohit Katyal
Thanks for the opportunity. Can you please shed some light on the pledge percentage? Even we have the net debt to equity of just 0.1. Why the pledge percentage is so much? I mean solemn percentage pledge. Can you just add some items? Net debt equity is the fund based debt. Total debt profile also has bank guarantees. Banks want securities for non fund based limits like bank guarantee as well. And therefore the promoters who basically started out as professionals in 201213 have given a pledge of 50 lakh shares for project specific limit of CIDCO to State bank of India.
Apart from there there was pledge of shares with Avendus which has reduced by 5 lakhs 10 lakh shares. I’m sorry. And we believe that this reduction will be much more aggressive over the next two quarters. We do believe that by the end of the current financial year there will not be any pledge with any other entity except State bank of India for the project specific limit of cipco. Great. And regarding this working capital, can I say that you know that the payment from Circo is, you know, highly late or something like that compared to other projects.
The payment from Circo is very, very Prompt. This can be confirmed by my other competitors as well. We have said that the zip or the contract assets created towards extra work done towards milestone payments which will get recorded. For example 3% is payable on the handover of the of the building. Now that work is done for handover, you don’t spend money but you get the money. Am I right? So it’s the nature of the billing. And since suddenly in three and a half years from zero EPC your company has gone to 70% or more in APC, you will have certain contract assets build up.
Why we are doing our best efforts to get this reduced to the largest possible possibility and you will see significant improvement in the current financial year.
Unidentified Participant
Great sir, great. Thanks. Thanks for the opportunity and all the best. Thank you very much. Thank you. Thank you. The next question comes from the line of Shivam Revankar from SME Expandation Solutions llp please. What?
Unidentified Participant
Hi, it’s Shivam again here. So my question was around, you know, there was some line that you threw on the efficiency games you’ve been, you know, playing with to increase and to tackle with the labor issue around the same lines which Ashutosh Katya, who’s your, you know, CTO has done some work on the E Force application to manage that problem. Well, can you, can you, you know, explain, explain how that plays around or are you able to quantify the productivity it brings into the business?
Rohit Katyal
So Eforce is an app which we use across our project sites for these following things. Number one, boots on grounds. Number two, what is the output that comes out and therefore the productivity per workman at the project site. Number three, once you have measured the productivity it gives a more sensible, more detailed information to the operations team where their efficiencies have to improve. So eforce is not labor deployment platform. It is basically a labor workman management platform which means one free cost. Labor contractors onboarded the project site. All the data is available on one click in the morning to measure the workmen across each project site and across all projects of the company.
Boots on ground, what work is done and therefore the productivity as far as recruiting labor contractor is concerned, that is the job of our LRD Labor Resource department who has been doing a very brilliant job over the last couple of quarters. As I just told you, all the projects at the moment are 90 to 95% manned and therefore these two things, one the E Force act and secondly the LRD combined. While I don’t refuse that there’s a lot of opportunity to improve upon both E Force and Our LRD going forward with various tools which are coming up, there will be substantial improvement which will go through and therefore help the company having a more stabilized labor or blue collared workforce.
But at the moment this is what EPOS is about.
Unidentified Participant
Yeah, okay, thanks. Thanks a lot. Thanks for clarifying.
Unidentified Participant
Thank you.
Unidentified Participant
And my other question was shortly what is the current interest rates for the company?
Rohit Katyal
So the working CC cash credit limits interest have come down to 10.3%. We see further improvement over the getting into the next quarter. That’s number one. The non convertible debentures which we had taken from certain which are high interest bearing upward of 13% is only about 61 crores as against 100 crores outstanding. And we hope that over the next quarter or two that is totally removed from our balance sheet and the average interest should not be more than 10% for the company. And therefore I gave a guidance that on absolute basis your total finance cost would be lower in the current financial year as opposed to last financial year.
Unidentified Speaker
Great. Thank you.
Unidentified Participant
Thank you very much.
operator
Thank you. As there are no further questions from the participants I now hand the conference over to Mr. Rohit Katyal for closing comments. Thank you. And over to you, sir.
Rohit Katyal
I would like to once again thank all of you for joining us today. We hope we have been able to address your queries and profile and provide useful insights into our performance and future outlook. If you have any further questions or require additional information please feel free to reach out to our investor relations team. Thank you once again for your time and continued support. Good evening and good night.
operator
Thank you on behalf of capacity Intra Projects Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.