Capacit’e Infraprojects Limited (NSE: CAPACITE) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Rohit Katyal — Chairman & Executive Director
Analysts:
Ranu Deep S — Analyst
Rishi Kothari — Analyst
Shreyans Mehta — Analyst
Rajesh Jain — Analyst
Unidentified Participant
Tejas Khandelwal — Analyst
Dhananjay Mishra — Analyst
Khushwant Pahwa — Analyst
Deepak Poddar — Analyst
Raghav Agarwal
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Infra Projects Limited Q3 and nine months FY ’25 Conference Call. Before we begin, a brief disclaimer. The presentation which Caperside Infra Projects Limited has uploaded on the stock exchange and their website, including the discussions during this call contains or may contain certain forward-looking statements concerning Infraproject’s limited business prospects and profitability, which are subject to several risks and uncertainties and the actual result could materially differ from those in such forward-looking statements.
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 Pen 0 on your touchstone phone.
I now hand the conference over to Mr. Rohit Katyal, Executive Chairman, Capstar Infra Projects Limited. Thank you, and over to you, sir.
Rohit Katyal — Chairman & Executive Director
Good afternoon, everyone. On behalf of Capacity, I welcome everyone to the Q3 and nine months FY ’25 earnings conference call of the company. Joining me on this call is Rajesh La, CFO; Mishit Pujari, Head Accounts; and Alok, Head Finance along with Marathon Capital, our IRL team. I hope everyone has had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our company’s website.
Our Q3 FY ’25 results showcase a strong financial performance with substantial gains in revenue and PAT. This is a direct result of our prudent financial management and dedication to maintaining a healthy balance sheet, positioning us for continued growth and deliver long-term value-creation. The back-to-back strong quarterly performance sets the tone for the future quarters wherein we anticipate further acceleration of the execution and operational improvements. Our careful project selection along with site our execution for progress has resulted in PAT for nine months FY ’25, surpassing our highest-ever yearly PAT and setting new performance benchmark.
The Q3 FY ’25 operational margin was partially impacted on account of one-time booking or expense pertaining to differential GST rate for one of the public sector contract, though it is an a separate fact that the client will have to bear the differential of GST rate. However, for want of written documentation and as a matter of prudence, we have booked expenses to the tune of INR12 crores in the current quarter. We are confident that the industry representations on this matter will soon be addressed and we should see the reversal in coming quarters.
Over the past few years, we have successfully optimized our project portfolio, resulting in significant expansion of order book, reduction in the number of projects under execution, increased revenue contribution per project and enhanced management efficiency, leading to improvement in margin profile. On the order book front, we have seen significant traction both from private and public sector. The bidding activity has seen a significant uptick, which should translate in orders awarding sooner. We have been awarded new projects worth INR1,459 crores during nine months ending December 25, December 24, sorry.
We have been awarded project by NBCC worth INR1,120 crores plus GST in the current quarter, thereby taking the total fresh order intake as on-date to INR2579 crores. The company stands as an L1 position in projects worth INR600 crores. With the order book so-far, we are more than confident of surpassing our guided order book addition for FY ’25. We have entered a high-growth phase supported by a diversified order book from esteemed clients across public and private sectors. Leveraging our robust financial position and execution expertise, we are poised to establish new performance standards.
I now come to the consolidated performance and highlights for Nine-Month FY ’25. Revenue from operations for nine months FY ’25 stood at INR1678 crores, up by 26% as compared to INR133 crores. I repeat INR1,33 crores in nine months FY ’24. EBITDA for nine months FY ’25 stood at INR318 crores, up by 31% as compared to INR243 crores in Nine-Month FY ’24. EBITDA margin for nine months FY ’25 stood at 18.7% as compared to 17.9% Nine-Month FY ’24. Similarly, EBIT for nine months FY ’25 stood at INR248 crores, up 52% as compared to INR163 crores in nine months of FY ’24. EBIT margin for nine months FY ’25 stood at 15.2% as compared to 12.1% in nine months FY ’24. PAT for nine months FY ’25 stood at INR151 crores, up by 120% as compared to INR69 crores in nine months FY ’24. PAT margin for the period stood at 8.9% as compared to 5.1% in nine months FY ’24.
For the quarter, revenue from operations stood at INR590 crores, up by 23% as compared to INR481 crores in Q3 FY ’24. EBITDA for the quarter Q3 FY ’25 stood at INR101 crores, up by 12% as compared to INR89 crores in Q3 FY ’24. The EBITDA margin for the period stood at 16.7% for reasons explained earlier as compared to 18.5% in Q3 FY ’24. EBIT for Q3 FY ’25 stood at INR76 crores, up by 57% compared to INR83 crores in FY PAT for Q3 FY ’25 stood at INR52 crores, up by 77% as compared to INR30 crores in Q3 FY ’24 PAT margin for the period stood at 8.7% as compared to 6.1% in Q3 FY ’24. The company continues its focus on increasing execution across project. Order book on standalone basis stands at INR10,047 crores as on 31st December ’24, public sector accounts for 63%, while private sector accounts for 37% of the total order book. I now leave the floor open for questions, please. 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 star and 1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2 all participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles first question comes from the line of Ranu Deep S from MAS Capital. Please go-ahead.
Ranu Deep S
Yeah, thank you for the opportunity and congratulations on a great set of numbers. Sir, capacity has a very strong track-record in the high-rise construction. And yet this segment contributes currently only 7% of your project split. So given your expertise and India’s rapidly-growing skyline, especially with increasing organization and high-rise development in metro cities, so do you see a segment becoming a larger part of your revenue mix in the coming years? And are there any specific strategies or projects in the pipeline that will drive the growth in this vertical?
Rohit Katyal
Yeah. Hi, good afternoon. So super High rise segment continues to be a very important part of our portfolio. The percentage may increase — decrease on the basis of new order wins. Just to keep you updated, we will be constructing along with joint-venture EBITATA projects at BDD 10 towers or 300 meters each. So our portfolio will get added with that order book once the land is made available in Q4 of the current financial and Q1 of the next financial year. So there is enough traction and order book sitting, though not recognized as order in our main order book with the company.
Similarly, we have bid for projects with certain various private sector clients for towers in excess of 280 meters, which obviously are going to be among the tallest towers in the country as and when they stand constructed. So there is enough traction and the company continues to focus and is a preferred contractor choice when it comes to super-high rises across various public — private sector clients.
Ranu Deep S
Sure notice, sir. Sir, my second question, the data center market in India is experiencing a massive boom driven especially by the digital adoption and AI advancements and government in fact promoting data localizations. So with hyperscalers and enterprises aggressively expanding capacity, the demand for construction expertise in this sector is also at an all-time high. So given capacity infra strong credential in large-scape infrastructure projects. What are the steps that capacity is taking to position itself as a first choice contractor for data center construction? Any specific investments in technology or partnerships or skill development that you would like to highlight, sir..
Rohit Katyal
So in data centers, we have constructed about 11 data centers for Department of Telecommunications through BSNL. Another two at and Kolkata are under-construction expected to be handed over by April. Apart from this, we have participated in a substantially large data center project, which includes the hardware part to some extent as well. And it’s on EPC basis and therefore the designing has been done through our joint-venture partners whose name we wouldn’t like to divulge at this moment-in-time. Going-forward, the company definitely is looking for collaborations on the design part because we believe that there is no need to reinvent an invented wheel. And you will see capacity as a strong contender for data centers to be put up by both public and private sector in the quarters to come. Hope to have answered your question.
Ranu Deep S
Sure, sir. Just one last booking — bookkeeping question, sir. I think in the Q1 call, you had guided for around INR3,000 crores worth of order inflows. We — at the end of Nine-Month FY ’25, we are at INR1,459 crores. Do you still maintain your guidance for INR3,000 crores, sir?
Rohit Katyal
So in my opening remarks, I mentioned that the order inflow, new order inflow, excluding additions from Mada stand today at 2579, we have just announced an order to date of INR1,120 crores for the Supreme Court monitor NBCC project in Noida. And that takes the order book in the current year to INR2579 crores. Further, we are in a L1 position in projects worth INR600 crores in private sector. And therefore, it should be a of the conclusion that we will cross INR3,000 crores minimum as order — fresh order intake in the current financial year. Along with Mada release of land in the current financial year, we will cross INR4,000 crores. Hope to have answered your question.
Ranu Deep S
Wonderful. Very good to know that, sir. I appreciate the responses and wishing you best luck for the next quarter. Thank you.
Operator
Thank you. Next question comes from Rishi Kothari from BI Square Investments. Please go-ahead.
Rishi Kothari
Hello. Thank you so much for the opportunity and I just announced for the announcement and congratulations on the big order flow-based on the other market cap that we are into right now. My question was specific to some of the accounting things. I mean, Lisa, your other income has increased drastically Y-o-Y, if you speak about it, right? So it’s been around INR2.3 crores something last quarter Y-o-Y and right now it’s INR10 crores. So what’s the sudden increase in the other income first? And is it because of — will it be considered over the quarters?
Rohit Katyal
So your question was not very clear, but if I understand, you are referring to other income. So INR10 crores is nothing but specialized items traded to our joint-venture companies, that is the other income and that will range between INR2 crores to INR12 crores over the next two — the next three to four quarters going-forward.
Rishi Kothari
Okay. And what exactly are the specialist ite upgrade? I mean, any specific explanation on it?
Rohit Katyal
Yeah. So for example, hospital oxygen modular — modular equipments which are required and in which capacity as a standalone is a qualified contractor. Those are the items which are traded with the joint-venture companies. The joint-venture companies would include a capacity project, which is in joint-venture with e-governance. Secondly, it could include certain revenues for goods traded with data project limited capacity JV for BTT projects.
Rishi Kothari
Okay. Okay. Got it. And my other questions was related to the cost of material. So I have seen that cost of material has gone up 45% Y-o-Y. So is it purely related to the revenue scale that we have? What exactly is that kind of increase in the cost of material?
Rohit Katyal
Yeah. When you talk about cost, please don’t look at M only. By M, we say material. You have to see M and M plus L both. And the third-part is L. When you total that up, you will see that the cost is 61% across 65% approximately, which is in-line with what we have been doing over the last four quarters.
Rishi Kothari
So, you’re saying cost of materials plus which other than
Rohit Katyal
I will repeat it for you. Short means labor subcontractor charges. It includes construction expenses. It includes material. So when you total this up, it will come to somewhere between 65% to 66%, all right. This is what the company has been maintaining. If you look at the last four quarters, it ranges between 66.77% to 65.55%.
Rishi Kothari
Okay. Okay. Okay. And also the — right now you mentioned about the one-time expense that we have incurred on the GST revenue something. So is it that we have incurred on the other expense item or how exactly are we accounting for It?
Rohit Katyal
Yeah, other construction expenses. So we would like to inform, I clarified during my opening remarks that this INR12 crores pertains to Bagwarti project of MCGM, where the GST when it increased from 12% to 18%, the 6% differential GST is yet to be reimbursed by the client. But the legal standing on the subject is that the client has to pay. However, as a prudent measure, since it has been outstanding for quite some time, we have made provision for the same, but we are very confident and in the coming quarters, this will get reversed. So that is the INR12 crore expense, which we were referring to. And that is why you see a small impact on the EBITDA, while over the nine-month period, we have surpassed the guided target for the EBITDA.
Rishi Kothari
Okay, got it. Got it. And also on the litigation EBITDA I saw the litigation 3 that are pending right now that we are more or less on it that some of the money has been recovered from it. So what other litigations do we have on pipeline? Largely does that — are there some other issue spending that we have?
Rohit Katyal
It’s an ongoing process. The company did see a tough time during COVID and two years thereafter, which I have explained during my previous quarter earning calls and we are determined to recover every penny even though it has been provided for. So some monies have been received. Somewhere properties have been received in lieu of the money. And there are certain matters where we have got court orders and some of them are in arbitration. So as I explained last-time, over the next four to five quarters, you will see substantial reversals happening. That’s what our understanding with the success what we have seen over the last four, five quarters translates into.
Rishi Kothari
Okay. Got it. Got it, got it. And in terms of next two to three years target, we are more or less aligned with what we have project in a way, right?
Rohit Katyal
So your voice is not very clear. Could you please repeat that question?
Rishi Kothari
Yeah. And then saying in terms of the next two to three years top-10, bottom-line targets, any growth numbers in terms of not numbers, but any percentage growth number.
Rohit Katyal
So with the order book, which we just informed you all and with the execution, what we need to do and commit it to clients, obviously, we see a 25% 30% growth year-on-year, if not more
Rishi Kothari
On-top line and more or less in the same range in the bottom-line
Rohit Katyal
Absolutely.
Rishi Kothari
Okay. Got it. Thank you. Thank you so much for that.
Operator
Thank you. Our next question comes from Shreyan S Mehta from Equirus Securities. Please go-ahead.
Shreyans Mehta
Yeah, thanks for the opportunity. Sir, I joined in a bit later. I’m not sure whether this question has been answered. First, in terms of our contribution from market and how should one look for the same for FY ’26?
Rohit Katyal
So we should be billing at least INR85 crores per month-in the next financial year, if not more. We have to hand over six locations by sometime June of ’26 for the calendar year ’26, I mean to say. All right. As far as Mana is concerned, we have a target to build about INR1,200 crores at the LLP level. So we do see that about INR400 crores will be billed at capacity level.
Shreyans Mehta
So in terms of working capital, you know, how is it looking like if you can give the numbers, inventory details and build?
Rohit Katyal
So there is a improved shift from WIP to debtors, which will translate into higher receivables in the current quarter. And therefore, we should see the numbers of last March which were close to excuse me, you have to premium working capital, please to last March on a substantially higher revenue. Similarly, as we told that we should look at reducing about 10 days to 15 days in the current year, we are well-poised to do that. We don’t see any hiccup in that because we hardly are working with any private sector clients where the certainty of payments is not there. So that change, which we did about let’s say, six quarters ago now is translating into what you see both in the terms of performance and financial stability.
Shreyans Mehta
Got it. And sir, are we seeing any payment delays from or Mada given the state, you know, especially the Maharashtra State government finances.
Rohit Katyal
So Maharashtra State Finances, we keep repeating quality of client is very important. Has also own source of funds, so there is no delay in. Mada has its own source of fund. There is no delay in Mara either. We were seeing delay in PWD of 90 days. We have just received our payment a couple of days ago. However, until next financial year, that means until April comes and monies are received in — from central government, from RBI and the borrowing power which has been increased for some performing states in the central budget. You will see delays in the projects which are funded by state government. Now those who qualify the state government, but they have their own source of income, similarly, Mara.
So we do not see any issue. And if you read all those articles are nowhere these clients are mentioned. They are more referring to PWD, maybe in some cases as MMRDA and therefore, the projects which we are executed are partially funded by center, partially funded by the department. And since the department has its own source of income, we do not see any issue over there.
Shreyans Mehta
Got it. Got it. And sir, one more clarification. In terms of capex, what we have done in nine months and what is the target for ’25 and ’26
Rohit Katyal
, shares, please allow me to tell my IR team to mail it to you. I don’t have that figure updated in front of me. However, it should be close to INR60 crores so-far. Majority of that being power — aluminum pump work.
Shreyans Mehta
Got it. Got it, sir. And sir, one last question in terms of the new order wins, will it be a pass-through in terms of raw-material or it will be a fixed-price contract?
Rohit Katyal
Hello, we don’t — we don’t believe in billing for fixed-price contracts. Okay. So all projects what we take will have a pass-through clause in private sector. In government, there will be escalation clauses, which differ from project-to-project, client to client or differs between state government and central government. However, we will not take-up any project without being substantially protected on the commodity prices.
Shreyans Mehta
Got it. Got it. Got it. Sure, sir. That’s it from my side. Thank you and all the best.
Rohit Katyal
Thank you.
Operator
Thank you. Next question comes from Rajesh Jain from Arcay Capital. Please go-ahead.
Rajesh Jain
Hi, sir. Good afternoon. In your consol results, for the INR67 crore receivable, the note number three says that no further provision is required. So I just wanted to understand whether that is fully provided.
Rohit Katyal
There are two things. Most of it is provided for. Secondly, we already have one the award from the competent authority, which in this matter is NCLT Court or the High Court and the property has been allotted to the company under a suitable legally enforceable agreement and that is why that clause is appearing over there.
Rajesh Jain
Okay. But how much of it is provided for sir in percentage or in value whatever,
Rohit Katyal
I do not have the exact bifurcation in front of me. However, we shall definitely send you the response. Via mail through our IR department today itself.
Rajesh Jain
Okay. But by and large, is it largely provided for or even half of it is not provision?
Rohit Katyal
I mean, your company stands 100% safe on the INR67 crores through provision and through property available. Once the property is registered on the contrary, you will see some profits being recorded by the company.
Rajesh Jain
Okay, great. And is there any other provision remaining for any other receivables apart from this?
Rohit Katyal
No, everything has been provided for or there are properties have been received by the company. So whatever new provisions come, they come only as per the ECL policy, which you have to recognize and which is approved by the Audit Committee of the company. So those provisions will keep happening and keep getting reversed as the company moves forward. But all the provisionings which have — which the company was subjected to during COVID year and subsequent to that, close to INR200 crores has already been done.
Rajesh Jain
Okay. And sir, as of Q3, as of December 2024, what are your total receivables or as a percentage of sales, if not the absolute figure?
Rohit Katyal
The total receivables As on Q3 ’24-’25 stand at INR500 crores, which is less than 90 days and should improve by about 15 days going-forward in the current quarter.
Rajesh Jain
Okay. And sir, can the margin be maintained at 18% plus in Q4 and in FY ’26 as a whole, can you maintain that margin 18% plus?
Rohit Katyal
See, we have been guiding 18% and that we have been — we have maintained that on a Nine-Month period, it will be maintained on a 12-month period as well. However, I have been requesting our investors that EBIT is the right thing to look at because EBITDA contains — just because your interest cost goes up and therefore EBITDA goes up, it does not make any logical sense for the investing community at large. That is my firm belief. So our EBIT, if you see has seen nearly 200 basis-points or 300 basis-points improvement over the last 12 months. I do believe that will continue. And yes, I do firmly believe that EBITDA, which was earlier guided at 17.5% upwards that will continue.
Rajesh Jain
Okay. So excluding this one-time impact which you had in this quarter of 12C, what would have been the — what would have been the EBITDA margins,
Rohit Katyal
18.73%.
Rajesh Jain
Okay. Okay. Great, sir. Okay. That’s it from my side for the time-being. Thank you.
Operator
Thank you. Next question comes from the line of from RSP Ventures. Please go-ahead.
Unidentified Participant
Hi, thank you for the opportunity and congratulations on a good set of numbers. So my question to you, sir, is interest and depreciation sequentially has gone up this quarter. So are there any one-offs or this can be the trajectory going further? And the second question will be the tax-rate. This quarter we have seen just 17% tax-rate on the consolidated basis. So any color on this will be helpful. Thank you.
Rohit Katyal
So if I understand your first question, you’re talking about the interest, right?
Rajesh Jain
Yes, investment appreciation.
Rohit Katyal
So the total finance cost has been for the current quarter 25.29 crores as against the last quarter of 21.58, that means quarter-on-quarter. If you look at year-on-year, it’s virtually flat. So obviously, this year — this quarter, we have both some charges of bank guaranteed renewals and certain bank charges for renewal of limits. However, on the full-year basis, when you will compare, you will see that on absolute basis, we would have reduced our finance cost on an increasing top-line. So as a percentage to the top-line, your cost of finance will drop. I repeat, it will drop as a percentage to the top-line. On absolute basis also, it will drop.
Unidentified Participant
Got it, sir. And on the depreciation side, sir.
Rohit Katyal
The depreciation is quite similarin, it is basically cyclical. You have purchased equipments of INR60 crores this year, there will be depreciation. And it’s hardly — I mean, if you see on the first-nine month period, it is INR79 crores as compared to INR69 crores in the last financial year. Increase volume increase.
Unidentified Participant
Got it, sir. Thank you. Thank you so much. And last one on the tax-rate, if you can give some color, this quarter it has no
Rohit Katyal
Tax-rate is as per calculations, you can please send me a drop as a mail through the IR department and we will respond immediately. The tax calculations are available for you to study and understand in detail.
Unidentified Participant
Got it. Thank you. Thank you so much.
Rohit Katyal
Welcome.
Operator
Thank you. Next question comes from Tejas Khandelwal from Prudent Equity. Please go-ahead.
Tejas Khandelwal
Oh, hello.
Operator
Yeah, please go-ahead.
Tejas Khandelwal
I wanted to know that the company’s top-line grew around 22% 23% this quarter, but the margins took such a huge hit that we showed almost no-growth in operating profit. I understand that you said INR20 crores of one-time GST expense. But if we exclude GST expense, still the operating profit stands at 17.3%, which — which is the lowest in last four quarters. So what explains that?
Rohit Katyal
So let me first correct you that I do not know if INR52 crores is less profit by any means and 16.74%, we continue to lead the market as far as EBITDA margins are concerned. At 16.74% is the EBITDA, INR12 not INR20, but INR12 crores is the one-time hit for GST. INR12 crores translates to 2.05% and therefore, had this hit not been taken, your EBITDA would have been at 18.74%, which is in-line with what we have been declaring. I reiterate that we are in a construction industry and therefore, a 12-month period is more sensible to be compared as vis-a-vis a quarter. Reason a quarter is too short a period for a construction industry, which basically takes three to four months-to mobilize a project. However, having said that, we have already guided that the company will be maintaining the overall guidance of 17.5 plus EBITDA, which is 18% approximately for the full-year and it will be maintaining and growing the EBIT by at least 200 basis-points over the corresponding period of last financial year.
Tejas Khandelwal
Okay. Okay, sir. Understood. And this one-time INR12 crores of GST expense, we — that is under other expense, right?
Rohit Katyal
That is under
Tejas Khandelwal
Expense.
Rohit Katyal
Other costs of expense, yeah.
Tejas Khandelwal
So then what is this INR17 crores of the expense which — which was in purchase of traded goods?
Rohit Katyal
Traded goods, but it is material. We just answer that question. There are certain specialized goods which we are supplying to our JV companies and those traded goods are forming part that is what has been mentioned.
Tejas Khandelwal
Okay. And sir, the share of profit from JVH is INR13 crores this quarter. So does this mean that the SPV has started recognizing profit?
Rohit Katyal
Yes, it has.
Tejas Khandelwal
And so how much of this INR13 crore came from that Tata project SPV HPV.
Rohit Katyal
Approximately INR9 crore to INR10 crores.
Tejas Khandelwal
Over INR9 crores. Okay. And what should we expect from this JV next quarter and next year?
Rohit Katyal
I will not be able to comment on a quarterly basis, but yes, on a yearly basis, we do look at between INR22 crores to INR27 crores coming from the LLP and TCC board put together in respect of this project.
Tejas Khandelwal
Okay, okay, sir. Understood. Thank you.
Operator
Thank you. Next question comes from Dananjay Mishra from Sunidhi Securities. Please go-ahead. Your line is open.
Dhananjay Mishra
Yeah, thanks for the opportunity. Am I audible?
Rohit Katyal
Yes, please go-ahead.
Dhananjay Mishra
Yeah. So all my questions are answered. Just wanted to know this CITCO project and Mada, you said INR1,000 crore for next year from project itself in terms of top-line and INR400 crore from Maharada. And so what is the contribution in Q3 from both these project and what is the expected contribution in Q4?
Rohit Katyal
So Q3 contribution is INR190 crores. Q4, we should be seeing more than INR220 crores coming from this project. And next year, I already told you between INR80 crores to INR85 crores will be the run-rate per month, all right. Mada, the total contribution for the current quarter is INR67.39 crores. We should see a similar contribution slightly more in the current quarter, that is quarter-four. From next financial year, we do look at approximately INR400 crores or thereabouts for the full financial year. So that translates into approximately INR35 crores INR36 crores per month. Please do not hold me on a quarterly basis, I’m guiding for the full-year.
Dhananjay Mishra
And in terms of real-estate market in Mumbai as well as also you are entering into LCR estate. So how do you see — I mean, when you talk to your client in terms of new launches or new pipeline, of course, existing projects we are doing good, we are doing fine. So how do you see in real-estate market in general in terms of new project awarding.
Rohit Katyal
So bid pipeline is extremely strong. So practically we are refusing one project every three days. So basically, we have gone through the turmoil, which was not created by our company, but Due to certain real-estate players during COVID and thereafter. And therefore, we are very, very choosy, as I have explained in the earlier conference calls also about the orders which will inflow into the company. In that, we cannot compromise on the cash-flow of the company and therefore, we are choosing only those clients in the private sector who either have tied-up their entire funds on the strength of their own balance sheets. Having an NPFC sanction or similar is a big no for us. Otherwise, the real-estate market is very good on all fronts, retail, commercial and residential.
Dhananjay Mishra
Okay. So I mean, they are not finding any stress in terms of — I mean, a lot of launches have happened in the past and launches have come down. So are they facing any challenges in terms of selling their inventory and that is — that may impact our future project and even on that project.
Rohit Katyal
With the order — order win of yesterday from NBCC, nearly 76% of our projects are central government or government-funded, sir. So there is no question of we having any impact over there. You have seen that the urbanization program announced by the central government in the current budget itself gives us a humongous opportunity and gives a look-ahead for the next four, five years. And that — those allocations are only going to increase. That’s point number-one. Point number two, the allocation of PMIY housing has been increased by 14 lakh houses for the current — next financial year in the central government budget just announced. Now come to the private sector. I just told you that however good or however bad, our order booking since private sector will depend on the strength of the balance sheet of our clients with who we are dealing. Markets will go up, come down. If you see too many of projects being announced quarter-on-quarter, then some question will come up, what will happen to the stocks? In a sense stop holding. So the point is we would not like to see the real-estate in micro basis, but on macro basis, I can say our clients are doing well.
Dhananjay Mishra
Okay. Okay, that answers my question. All the best same. Thank you.
Rohit Katyal
Thank you.
Operator
Next question comes from the line of from Global. Please go-ahead.
Unidentified Participant
Hi, sir. Thank you so much for the opportunity. Congratulations on a great set of results and the order win that you have announced today. Sir, I wanted to understand two, three things. Firstly, in terms of the new order pipeline for the next year, while you did indicate that you are actually rejecting some orders and the pipeline in the residential market look good. But on the public sector side, first, if you could outline, and also, yes, I’ll follow-up with the second question, can you first outline on the pipeline for the public sector?
Rohit Katyal
So you can take the — that the next financial year, we have internally set our target of INR4,000 crores of new fresh order inflow. All right. Our current financial year, we will close with a minimum of INR3,000 crore fresh order inflow, excluding whatever is added from Mada, okay. So just to give — just give you a sense that Mada project for capacity is in excess of INR5,500 crore. We have recognized only INR2,200 crores in our order book. That means that another INR3,300 crores is yet to be recognized in the order book, which is circulated and informed to you and everyone else, all right, as and when the land is made available, we will start recognizing it as a part of our operational order book. So having — answering your question, though the build pipeline is very strong, we will take — we aim to have INR4,000 crores of fresh order intake in the next financial year. And then the fact that we will cross INR3,000 crores of fresh order inflow in the current year is a — it can — it’s a conclusion which anyone can reach.
Dhananjay Mishra
Got it. Got it. That is — that is very encouraging. Sir, on the order that we had won last year with a new developer, Signature Global, have we started execution there and what’s the kind of execution expected from them for the next year? And also if you could outline that since they are a large developer and have had strong pre-sales, do you hope to have further orders with them in the next year?
Rohit Katyal
Yes. Or I do not have any information on their own bid pipeline, though we do keep meeting them and they do say that they have a lot of orders, which will come up next financial year. Coming to the main question, the order which we book was close to INR1,100 plus crores, INR1,200 crores and the work has started at the site. We shall start recognizing revenue from March onwards. And obviously, with the timelines which we have agreed to, we will have to build close to INR20 crore crores starting per month only on RPC part. So answering your question, we should look at about INR240 crores or thereabouts in the next financial year coming from Signature Global good, am I right here.
Similarly, the new project from NBCC also warrants that we start that. We will start that billing again from April onwards. And given the timelines, obviously we will see serious traction in the billing of that project as well. So all these factors put together, Mada, NBCC, private sector, which includes Godridge, which includes other clients including Raymond. It clearly you know showcases that the 25% 30% growth for the next financial year is given. And this is what I have been always harping on. The turnovers will only happen when you have 20 projects, which give you INR20 crores per month. That is how a construction company will grow, not just by adding orders, which do not add revenue or the bottom-line.
Dhananjay Mishra
Got it. Got it. That’s also encouraging. Sir, just lastly in terms of — you did outline that there are a lot of recoveries that are expected over the next five quarters with regards to the past litigations. If you could outline as to what do we hope to close-in the next five-quarter in terms of quantum, if you can give some guidance there?
Rohit Katyal
Yeah. So we do expect that about INR120 crores should be realized. Because out of that some properties are on registration stage, which obviously the company doesn’t expect to hold those properties, it will be — it needs to be disposed, all right. So we do believe that over the next 15 months, the company will realize about INR1150 crores INR220 crores from the total lot of INR210 crores.
Dhananjay Mishra
Got it. Got it. Great, sir. Thank you so much and all the best for the next year. Thank you.
Rohit Katyal
Thank you very much.
Operator
Thank you. Next question comes from from Nuvama. Please go-ahead.
Unidentified Participant
My questions are answered. Just one or two of them. For Maharada and, currently how many towers inside the work is ongoing, if you can give that?
Rohit Katyal
Oh, it’s a technical question, but I think close to 60 towers.
Unidentified Participant
Okay. And sir, for FY ’25 end, what is the debt levels that we are looking at to close the year
Rohit Katyal
FY ’25, it will be at similar levels at what we are. The cash position obviously will improve further.
Dhananjay Mishra
Okay. And finally, sir, if you can give our fund and non-fund based limits and what is their utilization?
Rohit Katyal
The company is sitting with unencumbered cash of close to INR80 crores apart from the fixed deposits, which are lying at the bank’s margin for LCBG. The total fund-based limits for working capital are INR190 crores, utilization is INR140 crores. The total non-fund based limits are close to INR1,000 crores within consortium and the utilization is close to INR700 crores. So INR960 minus INR700, about INR260 crores of available bank guarantee and LC limits. I think this was your question. Hope to have answered it.
Unidentified Participant
Yeah, sure, sir. That’s it from my side. Thank you.
Operator
Thank you. Next question comes from Kushwant Pawa from KPAC. Please go-ahead.
Khushwant Pahwa
Good afternoon. Am I audible?
Rohit Katyal
Yes, please go-ahead.
Khushwant Pahwa
Congratulations on good set of numbers. I just wanted to ask couple of questions One is on your realization. You mentioned that you expect INR1150 crores to INR130 crores of reversal for realizations over the next five to six quarters. If I’m not wrong, in the previous call, you have guided that you are taking a target of some recovery of around INR80 crores, a reversal of around INR80 crores by the end of this financial year. So if you could just —
Rohit Katyal
I had guided that the real-estate assets of the company, which are non-core to the company, that is a INR50 crore target. That only reduces the gross debt.
Khushwant Pahwa
Okay. Understood. We are not expecting is
Rohit Katyal
Let me complete. These reversals, which we are talking about now are the ECL, which the company had booked, all right, and provision for either in form of ECL as and/or bad debt. Now these reversals will start happening over the next five, six quarters. We have two different things. And obviously, both the different things do add and make your balance sheet much more beautiful.
Khushwant Pahwa
So you do expect that reversal of about INR80 crores by the end of this financial year.
Rohit Katyal
See, we are just awaiting the NOC from the lead bank, which we expect in the next 10 days. And if that happens, already disposable — disposal of INR41 crore of assets is already done. Once the NOC is given, we will — our bank will receive that money. So yes, it may not be INR80 crores because of delay in receiving NO3, but yes, I do expect upward of INR50 crores at least to happen in the current quarter.
Khushwant Pahwa
Wonderful. And on this expected realization of — I understand it’s INR150 crores to INR160 crores over the next five to six quarters. Can you throw some light on how much this number was in this current financial year? I’m sorry, which was stated earlier, I.
Rohit Katyal
No, I don’t have the ECL for the current financial year. I can tell you over the last four years, we provided more than INR200 crores of ECL, okay. Out of that INR210 crores, the company is confident of collecting INR150 crores to INR16 crores in the next five to six quarters. We will keep on updating quarter-on-quarter basis as you know, cases get settled in our favor. For example, one property of INR10 crores is under registration as we speak. Once that gets registered, the company gets a suitable credit.
Similarly, over the next two months, we expect other INR41 crores property to get registered. So we are at various forums once that gets registered, obviously a reversal will happen. And once that reversal happen, then this asset will be put on the block for-sale. So your sale of what INR116 crores what we said that increases by another INR40 crores. You get my point?
Khushwant Pahwa
I understand. Thanks for that.
Rohit Katyal
It is a dynamic thing. So don’t confuse the two things. They will work-in tandem.
Khushwant Pahwa
Thank you. Just one more question. I think you have done consolidated revenue of around INR16 crore INR78 crores in the nine months and it is about INR19 crore INR32 crores in the last financial year. Are you in a position to give a broad guidance for how we’ll close this financial year and some broad guidance for next financial year. I know you mentioned 25% to 30% growth for the next two to three years.
Rohit Katyal
Our current financial year we have guided 25% and there’s no reason why we shouldn’t do that. Next year, I have told you that we are committed — we have commitments to the client for at least 25%, but the new orders which are coming in have a shorter execution period and therefore, this 25% could become 30%, 32% as well. However, the guidance year-on-year on a higher base will be minimum 25%.
Khushwant Pahwa
Perfect. Thank you. I have no further questions. All the best.
Operator
Thank you. Next question comes from Deepak Podar from Sapphire Capital. Please go-ahead.
Deepak Poddar
Yeah, am I audible, sir?
Rohit Katyal
Please go-ahead.
Deepak Poddar
Yes, sir. I mean, for this year 25% growth that we are targeting. So ideally we need to do INR750 crores of execution in the 4th-quarter, right? So I mean that is something which we are targeting. I mean, because we have not never done such kind of execution in the past.
Rohit Katyal
Now we never hit INR600 crores either. We have very — we are getting distance from that this quarter. And we have done about INR190 crores in January and we have certain targets for February and March and is the peak working season. So we are confident we need to touch INR700 crores. We will do that.
Deepak Poddar
Okay. Okay, at least INR700 crores plus is what we might be targeting in the 4th-quarter.
Rohit Katyal
Look at the balance sheet, look at the growth. So we will be giving 25% growth and a much better growth on the bottom-line. It will be an historic PAT for the whole year again in the current financial year. So we will discuss in more detail in the next investor conference.
Deepak Poddar
And sir, you mentioned something about the EBIT margin improvement. I missed that point. Can you just repeat? I mean, you’re talking about some 200 basis-point EBIT margin improvement. So what exactly?
Rohit Katyal
If you look at our presentation, which has been uploaded. So you will see that our EBIT is close to 14.6%.
Deepak Poddar
14 points is for nine months EBIT margin
Rohit Katyal
For nine months average. And I contain that for a construction company, it has to be seen over a 12-month period, at least nine to 12-month period. And if you compare that with the corresponding nine months last financial year, it was 12.1%. So I just mentioned that we have grown — improved the EBIT by 200 basis-points and that is basically the true growth which our investors will see and thereby resulting into cash PAT, thereby resulting into a reduction. When we say that we are going to reduce our debt, it should come from the numbers which we are presenting to you. So improvement in EBIT is a very important factor because doesn’t take into consideration depreciation and amortization. And therefore, EBIT is a more logical number to follow as far as construction companies are concerned? That’s my personal view.
Deepak Poddar
Correct. So how should one look at EBIT margin if you have to see next one to two years? I mean, this 14.5%, is there any improvement possible in that or is this the stable number we are looking at?
Rohit Katyal
You on the world. So our guidance was 12.5%. I had already informed in Q1 or Q2 that 50 basis-points improvement will be there. We have done better than that. Let us stick to this at the moment, plus — but don’t punish us for 1% plus or minus on quarter-on-quarter basis.
Deepak Poddar
Absolutely. But this is the stable range we can look at, right, 14%, 14.5%
Rohit Katyal
For the full-year — for the full-year, yes, I — we have already guided amount 13%. So anything above that is Swedish, please let’s all enjoy that.
Deepak Poddar
Absolutely, absolute. And we were also talking about debt reduction, right? I mean, so currently, you’re talking about similar debt levels in this year. So how should one look at over FY ’26? I mean, is there any debt repayment we are planning? I mean interest cost-reduction also?
Rohit Katyal
When I say similar debt level, I mentioned gross debt. Yeah, as your collection improves, your cash position improves and therefore your net-debt level may fall by INR20 crores, all right. However, we have to remember that in this particular quarter, we will be starting two new projects, all right. So there will be infusion of our working capital in those projects, I think to start with. So therefore, I have guided that the debt level on gross will be similar. There will be some further improvement in the cash holding — free-cash holding of the company, which for the quarter three was close to INR75 crores or thereabouts. And we are very hopeful to take it in excess of INR100 crores by 31st March. So your net-debt level will fall a little bit. Gross debt level is being guided for the same level.
Deepak Poddar
So I was asking from FY ’26 perspective, so how should we look at debt levels from FY ’26 or
Rohit Katyal
You should see a fall of INR100 crores in net-debt.
Deepak Poddar
INR100 crores fall in net-debt. I mean, so ideally, I mean net-debt we are talking. So ideally absolute level interest cost also expected to fall because
Rohit Katyal
You can see that. I mean on absolute basis, if you look at our finance cost for the first-nine months of the current financial year as well. We have expected INR72 crores as against INR69 crores. On absolute basis, you will see a similar number on an increased turnover or little bit lower as I was mentioning in my earlier question, answer to a question as well for the full financial year. Obviously, next year it has to fall. Increase in cash will result in fall-off absolute interest.
Deepak Poddar
Absolutely. I got it. I understood. That’s very clear, sir. I think that would be it from my side, sir. I mean all the very best to you. Thank you.
Rohit Katyal
Thank you very much.
Operator
Thank you. Next question comes from Raghav Agarwal, an Individual Investor. Please go-ahead.
Raghav Agarwal
Hi, hi, sir. Hello. Raghav, sir, your line is not that clear. Hello.
Rohit Katyal
Yes, please go-ahead.
Raghav Agarwal
Yeah. Thanks for the opportunity, sir. I just wanted to touch on the contract assets. So in September, they were at around INR1350 crores. Just wanted to get your view on like how do we plan to reduce trajectory the next one to two years on the contract assets.
Rohit Katyal
So we do believe that the contract assets in the current year Will fall on absolute basis. However, in the next financial year, we further see a reduction of INR200 crores over four-quarter period,
Raghav Agarwal
Understood. If you could just throw some light on when is a contract asset target like essentially what is the journey of contract assets? And the reason I ask this is because compared to typically other EPC players, our contract assets seem to be slightly more than last year.
Rohit Katyal
So on an annualized basis, we may be at 80 to 20 days as the industry average of 72 days. But we have already guided that there will be a reduction of four to five days as a percentage of the top-line. So if you look at seven or eight well-performing companies, you will see an average of 72% to the top-line as contract assets, which includes weight cost compensation, uncertified bills, blah, blah, blah. And to that you add your debtors as well that would ultimately translate into 73% to 74%. And this is true for most of the companies. Okay, there may be some exceptions, but generally 85% to 90% of the good companies will have that level. We have a higher-level than that. And as I told you that we should be close to 78% by March. That’s — at least that’s what we are targeting. And by next financial year end, we should be below 70%, if not better.
Raghav Agarwal
Understood. Thanks for this, sir. And last question is on the recent like the NCLT proceedings which you had filed on the exchanges. So I assume that the entire claim amount of roughly INR80 crores INR83 crores is already provisioned for ECL. Would that understanding be fair?
Rohit Katyal
Okay. We are well on our way towards recovery, but you see the court matters take time and all these amounts are acknowledged debt by the clients. So they — the respective clients, until they are bankrupt, we do see a very strong possibility of the recovery. I cannot give a particular timeline, but as I told you that we are looking over the next five, six quarters for recovery of INR115 crores.
Raghav Agarwal
Understood, sir. Just wanted to understand how is this — Nick, where-is this present in our financial books, the recovery amount?
Rohit Katyal
It is not present INR67 crores is present, that will come, balance amount which will be recovered will hit the bottom-line.
Raghav Agarwal
Understood, sir. Understood. And sorry if I’m on this.
Operator
Sorry to interrupt, sir, may we request to return to the question queue for follow-up questions. Thank you. Participants requesting all the participants to limit themselves to two-question each per person. If you have follow-up questions, please rejoin the queue. Next question comes from Rishi Kothari from Y Square Investments. Please go-ahead.
Rishi Kothari
Okay. Again, thank you so much for providing the opportunity. I had some questions regarding the public sector projects that we have. You had talked about that there are some public — state funded as well as central funded. So can you just give me back provision of it?
Rohit Katyal
So as all our projects basically whether in residential side are funded are at approved projects under PMAY, Prime Minister Rawaj. All our projects from central government per central government pool, whether it is now NBCC or earlier it was BSNL for DOT or central — central government-funded projects with NBCC being a Supreme Court monitored project, which you must be aware. So these projects are central funded. When it comes to state government in Maharashtra, we are only working with those clients who have their own source of income, which includes, Mada and MCGM.
What is their own source of income, whether it is a premiums, FSI, land sale, a lottery system or whatever you have. So these clients have their own source of income. So they are more like a company and it is much easier for them to have financial closures as opposed to, let us say irrigation development authority who primarily will depend on government, grant and government sanctions. So if the finances of the government are tight, those clients will face trouble. But in our case, since we are dealing with such clients, we do not foresee any issue with them. So this is the bifurcation between central and state.
Rishi Kothari
Okay, okay. Thank you so much for the clarification.
Operator
Thank you. Next question comes from the line of Rajesh Jain from Arcay Capital. Please go-ahead.
Rajesh Jain
Yes, sir. Thanks for the follow-up. Just one stock-related question. So now your business prospects are looking so strong over the next two, three years, 25% to 30% even with positive upsides of the reversals or the recoveries directly hitting the bottom-line. Now the stock is trading at 13 pe. Is the management at all considering of buyback through market purchase method or else the promoters in their individual capacity are thinking of buying from the market.
Rohit Katyal
We haven’t discussed internally because the market has fallen today for reasons only God knows our stock is concerned. If you look at the trailing PE — sorry, trailing EPS over the last four quarters, we are close to INR24. So 24 EPS means there is a substantial improvement, more than 100% improvement in the company’s performance. I’m sure the market will recognize it very soon. As far as promoters are concerned, your company’s promoters are all professionals like you all are. So we started this company in 2012 and we have done everything possible in our means. And as far as buyback is concerned, no, at the moment, the company’s cash-flow do not permit any buyback. We will look at this in a couple of years from today. However, as far as the promoter stake is concerned, we did add close to 31 lakh shares, which got converted last December — last November or December. And if the stock underperforms, we’ll definitely look at it. We are more than confident on the performance and operational strength of our organization so this is how we are going to be looking at it.
Rajesh Jain
Thank you.
Operator
Thank you. Next question comes from Deepak, an Individual investor.
Unidentified Participant
Yeah, yeah. Hello. Am I audible, sir?
Rohit Katyal
Yeah.
Unidentified Participant
Yeah, sir, do you expect any other one-off in the forthcoming quarters? One-off expense?
Rohit Katyal
What? No, we do not expect.
Unidentified Participant
And just — and just one sir, basically suggestion, please going-forward, you know it will be better if you can just put the one-off expense, if there are any in the presentation and-or the press release.
Rohit Katyal
Absolutely. We will do that because we will do that. However, we are surprised that 16.74% is a lower EBITDA or for that matter, 8.1% PAT is a low PAT. I mean, actually speaking over the last four quarters or 3/4 especially starting March of ’25, ’24 and the current financial year, we have outperformed all the targets on all parameters what we have given. Your suggestion is well taken. The IR team and our accounts team have been informed today after what the drabbing which we saw, we will try to be extra cautious over such matters.
Unidentified Participant
Yeah, because you know in a layman, basically if we see — if you exclude the JV process, it seems that the profit has fallen significantly, right? So thank you for the — basically taking my question and the advance.
Rohit Katyal
Thank you very much.
Operator
Thank you. Thank you. Ladies and gentlemen, we would take that as our last question for today. I now hand the conference over to Mr Rohit Katyal for closing comments.
Rohit Katyal
Thank you all of you all for joining us on this call today. I hope that we have been able to answer your queries. Please feel free-to reach-out to IR team for any clarifications on feedback until we meet again. Bye-bye. Have a nice day.
Operator
Thank you. Thank you. On behalf of Infra Projects Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.