Ceigall India Ltd (NSE: CEIGALL) Q2 2025 Earnings Call dated Nov. 08, 2024
Corporate Participants:
Ramneek Sehgal — Managing Director
Bhagat Singh — Group Chief Financial Officer
Analysts:
Ankit Jain — Analyst
Ketan Jain — Analyst
Jainam Jain — Analyst
Varun Arora — Analyst
Parth Thakkar — Analyst
Dhaval Jain — Analyst
Darshil Jhaveri — Analyst
Himesh Shah — Analyst
Sahil Vora — Analyst
Sunidhi Joshi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY25 Earnings Conference Call of Ceigall India Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Ankit Jain from Orient Capital. Thank you, and over to you, Mr. Ankit.
Ankit Jain — Analyst
Thank you, Rituja. Good afternoon, ladies and gentlemen. I welcome you for the Q2 and H1 FY25 earnings conference call of Ceigall India Limited. To discuss this quarter’s business performance, we have from the management Mr. Ramneek Sehgal, Managing Director; Mr. Puneet Singh Narula, Whole-Time Director; Mr. Bhagat Singh, Group CFO; and Mr. Kapil Aggarwal, CFO.
Before we proceed with this call, I would like to mention that some of the statements made in today’s call may be forward-looking in nature and may involve risk and uncertainties. For more details, kindly refer to the investor presentations and other filings that can be found on Company’s website and stock exchanges.
Without further ado, I would like to hand over the call to the management for their opening comments and then we will open the floor for Q&A. Thank you and over to you, sir.
Ramneek Sehgal — Managing Director
Hi, good afternoon. This is Ramneek Sehgal. I’m MD Ceigall India Limited. Good afternoon, ladies and gentlemen. I am pleased to welcome you all for quarter two financial year ’25 earning call of Ceigall India Limited. Our financial results and investor presentation has been uploaded on the exchange. I hope you would have had a chance to review them. Joining me today are Mr. Bhagat Singh, Group CFO; our Director, CEO, Mr. Puneet Singh Narula; our CFO, Mr. Kapil Aggarwal.
About the industry, India is the world’s fastest-growing major economy achieving a real GDP of INR160 trillion in ’23 and predicted to become the third largest global economy by ’27. Infrastructure development is key to this growth, contributing 3.5% to the GDP. Over financial year ’24 to ’28, the sector investments are expected to reach INR52,962 billion, with road construction as a major drive of both growth and employment. The government has allocated over INR11 lakh crores for infrastructure development this year. Among the allocations, INR2.78 lakh crores have been designated for road transport and highways, INR2.65 lakh crore for railways, INR2 lakh crore for logistics and supply chain sector, INR24,900 crores for metro rail projects. Additionally, NHI has announced a pipeline of 53 projects worth approximately INR2 lakh crores through the BOT model over the next three to five years.
The revised model reconciliation agreement introduced by NHI offers a substantial risk mitigation, making it more investment-friendly. This investment, our strong commitment to the rapid infrastructure growth and presents significant opportunities for the Company. With our expertise in delivering large-scale projects on time, we are well-positioned to capitalize on these developments. Our Union Minister for Road Transport and Highway, Mr. Nitin Gadkari recently highlighted the major projects has been approved with a cabinet clearing INR51,000 crore, another INR40,000 crore to INR50,000 crore under review. By December end, project totaling INR2 lakh crore are expected to receive approval. We are actively pursuing these opportunities and I’m optimistic about successful bids.
Company results. Turning to our financial performance, I’m pleased to share that Ceigall India Limited has achieved a steady financial and operational results in the second quarter of financial year ’25. With a well-balanced portfolio of EPC and HAM projects, we have not only strengthened our position in the road and highway sector, also successfully expanded into other areas like metros, railways, airport runways, tunnels, et cetera. The revenue from the operations excluding the bonus and royalty increased by 5.2% to INR7,721 million while the EBITDA for the quarter stood at INR1,229 million with a margin of 15.9% as is compared to 15.6% in the previous quarter and 16.3% in the quarter two financial year ’24.
Over the past few years, we have consistently maintained an EBITDA margin in the double-digit range. With the current ecosystem of the resources, material finances, and technical expertise at hand, we are confident that the present order book and the project execution will enable us to deliver impressive performance and growth. Order book and revenue visibility. As of September 30, 2024, our order book stands strong at INR1,21,532 million indicating a healthy book-to-bill ratio. Our order composition includes 85.7% from road, highways, elevated flyovers, tunnels, 12.6% from railways and metros, 1.8% from bus terminals, and 0.48% from the runways — airport runways. With a robust pipeline of projects, a proven ability to complete projects ahead of schedule, consistently high-quality construction, our company enjoys a strong competitive edge and a solid revenue visibility in the quarters to come.
Now let me provide you an update on the ongoing EPC project. The Delhi-Saharanpur Highway project is complete — almost completed. Delhi-Amritsar-Katra project is complete to the land available to us. The PCOD for both the projects are under process and we are targeting or expecting to get it in the third quarter. Additionally, the other project which is Makhu-Arifke, we have again filed for the PCOD. And moving to our higher projects, the Mandi Dabwali project is now 96.81% completed while the Jalbehra has reached 73.96%. We anticipate finishing these projects in the third and fourth quarter respectively. Both the projects are ahead of schedule, positioning us for a potential early completion bonus. This reflects the efficiency and dedication of our team. We remain optimistic about achieving these milestones in the month ahead. The Company has received the annuity of INR906 million on a gross basis from NHI for its first HAM project, Malout Abohar Sadhuwali, which had been — which was completed ahead of schedule.
I would also like to highlight the HAM project has been rated AAA rated by CRISIL. As of now, the overall credit rating of the Company is A-plus long term, A1 short term as per CRISIL. I’m also pleased to announce that our company has emerged as L1 bidder for two new HAM projects, Southern Bypass Ayodhya worth INR1,299.2 crores and Northern Ayodhya Bypass worth INR1,199.3 crores.
Closing remarks would be from my side. In conclusion, Ceigall remains dedicated to creating value for our stakeholders, customers, and shareholders. We are confident that our focus on innovation, diversification, and operational excellence will propel our growth in the coming years. Thank you for all your support and trust in Ceigall India Limited.
I’ll now hand over the call to Mr. Bhagat Singh, our Group CFO, who will provide the overall review of the financial performance. Thank you, everyone.
Bhagat Singh — Group Chief Financial Officer
Thank you, Ramneek, sir, and good afternoon everyone. I will provide you an overview of the financial highlights for the quarter two FY25. I start with my insights on standalone financials. The standalone financials for Q2 FY25, the revenue from operations excluding bonus and royalty stood at INR8,096 million, a 16.3% increase from the previous corresponding quarter FY24. The EBITDA excluding bonus and royalty grew by 12.4% to INR1,018 million in Q2 FY25 as compared to INR906 million. The EBITDA corresponding increase during this quarter stood at 12.6%. The PAT for Q2 FY25 stood at INR633 million as compared to INR642 million in Q2 FY24. On a standalone basis, our gross debt stood at INR3,491 million. This includes equipment term loan INR193 million, term loan INR2,021 million, and a working capital loan of INR1,277 million.
Now I move on to the consol financials for Q2 FY25. Our revenue from operations excluding bonus and royalty, it is — consol basis reached INR7,721 million, a 5.2% increase from INR7,338 million on Q2 FY24. EBITDA excluding bonus and royalty grew by 2.7% during the current quarter and INR1,229 million in Q2 FY25. The PAT for the Q2 FY25 stood at INR655 million with a margin of 8.5%. On a consol basis, our gross debt stood at INR9,942 million. This includes equipment term loans, term loans and HAM term loans of INR5,808 million and a working capital loan of INR1,376 million. In line with our commitment to the financial discipline, the Company has repaid debt to the extent of INR413 crores using the IPO proceeds.
As I move forward further, the net working capital days have stood at 61 as of September 30. The days have been calculated considering the inventory days, WIP position, debtor, and the vendor. The company has in total 22 ongoing projects. With a strong order pipeline, the Company is well-positioned for solid revenue growth and future success. This quarter, we have made a steady progress in our financial results and we are confident that we will continue to grow in the coming years. We believe the Company will generate robust internal growth, ensuring it has the financial resources needed for a long-term success.
With this, I conclude my remarks and thanks all our team stakeholders, including our employees, business partners, vendors, auditors, bankers for their wholehearted support in the long-term growth journey of the Company. On behalf of Ceigall India Limited, I thank everyone for attending this call.
Now I request the moderator to open the floor for Q&A. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Ketan Jain from Avendus Spark. Please go ahead.
Ketan Jain
Thank you. Good afternoon, sir. My first question is on order inflow. What was your order inflow for FY24 and how do you see it for FY25 and the order inflow till date, like for the first half?
Ramneek Sehgal
Bhagat ji, are you answering or shall I answer?
Bhagat Singh
Hello. Sir, can I continue?
Ramneek Sehgal
Yeah, yeah. Please go ahead.
Bhagat Singh
Okay. So as of September ’24, my total order book stood at INR1,21,532 million. It comprises of EPC, HAM, railways, bus terminal, and airport runways.
Ketan Jain
Sorry to interrupt, sir. But I was asking for order inflow. Like how much you won for the year.
Bhagat Singh
The order inflow during the current quarter?
Ketan Jain
First half.
Bhagat Singh
So we have received two orders — one is from — two orders from Ayodhya. One is Northern Ayodhya Bypass and another is Southern Ayodhya Bypass. Both are HAM projects of the Company and with the EPC, the Company got a Northern Ayodhya Bypass project at a EPC value of approximately INR1,200 crores and Southern Ayodhya Bypass project at a EPC value of INR1,300 crore projects.
Ketan Jain
So around INR2,500 crores?
Bhagat Singh
Yeah, so we have also been blessed with the…
Ramneek Sehgal
Yeah. Sorry, I’ll just add. We have one metro project that’s close to about INR900 crores. And we have won one terminal — bus terminal project, which is a smaller project close to INR143 crores. Am I right, Bhagat ji?
Bhagat Singh
Yeah, all projects is correct. Yeah, yeah.
Ketan Jain
All of them are included in the order book, sir. Is it?
Ramneek Sehgal
Yeah, yes.
Ketan Jain
Okay. Okay. Okay. Thank you.
Operator
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Good afternoon, sir. Sir, my question is, do we have any of the projects in which we are L1 and which are yet to be awarded?
Ramneek Sehgal
Yes, there is one elevated project in Jharkhand, which is about INR207 crores, which is yet to be awarded. I think there’s some elections in the state. So once elections are over, then I think they might award us.
Jainam Jain
Okay. And so we have seen a decrease in EBITDA margin by 200 bps on year-on-year basis. So what was the reason for that?
Bhagat Singh
Sir, I’ll answer this question. So, sir, there is no decline on a cost basis. So what you need to do is, there is a — when we talk about the revenue from operations excluding other income, so there are two types of things which are component of a revenue from operation. One is royalty and another is a bonus part. Royalty and a bonus part are inconsistent. They are not a regular feature. If you have gone through our press release, which has uploaded on exchanges, you will find we have given a separate disclosure of our revenue on quarter-to-quarter and half yearly along with the EBITDA margin.
For your convenience purpose, I’m just reading what we have uploaded on the website. For Q2 FY21, my revenue from operation excluding bonus and royalty stood at INR7,721 crores as compared to the corresponding revenue of the previous quarter INR7,338 crores, though, this is a consol number. If you ask me about standalone, standalone revenue for this quarter is INR809 crores. Previous corresponding quarter previous year was INR696 crore. So there is a jump in the revenue. If you ask me about EBITDA margin, the EBITDA excluding bonus and royalty for the current quarter stood at 12.6%. The EBITDA for the corresponding quarter last year stood at 13%.
So the pure EBITDA margin from the pure construction activity of the Company, which the company carries out, it stood at between 12.5% to 13.5%. It is a standard range. Over and above this, there is a windfall gain of royalty, another is a bonus and other income. So when you do a comparison analysis, you need to understand the income of the Company comprises of a revenue from a multiple resources. The one is pure construction activity, another is royalty. The other — another is a bonus, which the company’s already — which the company receives when any project gets completed earlier. And the last one is other income, that is FDR income.
Jainam Jain
Okay, sir. And sir, why are we seeing the increase in receivables and payable compared to Q4?
Bhagat Singh
Sir, there are — this is a simple reason. I’ll tell you. We are talking about the second quarter. July and others, we remain been a primarily a rainy season. So the execution of the construction activity remains slow in the first month and the mid of second month, and whatever construction activity took place in the second — balance part of the second month and the third month, it got built in the last week of the September month. So it is a momentary thing. Whatever billing has been done in the month of September, it is showing as a outstanding at a debtor level.
But now as against that, the Company has already received INR280 crores during the month of October. We are expecting that the remaining debtor would be covered up within the short period of a time. And as we — whatever guidance we have given earlier also, our working capital days including this present level stood at 61 days only, which is far better than the industry standard. So it is a momentary thing.
Ramneek Sehgal
I’ll just add one more thing. Atma Nirbhar scheme was there during COVID, which was a relaxation for milestone payments. Earlier, if we were supposed to get a milestone payment at 10%, 30%, 70%, 50%, because of Atma Nirbhar, we could get payments in between also. So that Atma Nirbhar circular has been removed now. So now back again, we have the milestone payments. And in EPC milestone payments, it is a total time of the — in which we do a EPC, each layer we do it, we achieve the milestone and then we get a milestone payment. Thank you.
Jainam Jain
Okay, sir, got it. And sir, what are the mobilization advances on book currently, on books?
Bhagat Singh
As on 30 September, the total mobilization advance which we have taken is INR252 crores, which is outstanding as on 30 September.
Jainam Jain
Okay. And sir, are we looking to monetize any of our HAM road assets?
Bhagat Singh
The Company has one fully operational HAM asset that is Malout Sadhuwali. Another Bathinda Dabwali, as Ramneek sir has mentioned, 93% we have already completed. So the Company has a open plan for monetization of its HAM assets that can be done in the form of either individual HAM asset sale to any specific investor or in the form of InvIT. The Company would be exercising the due option considering this cash flow position and the fund requirement for its long-term sources.
Jainam Jain
Okay, sir, got it. So is there any specific timeline that we cater to in terms of monetization of assets?
Bhagat Singh
As of now, there is no timeline, whatever HAM projects the company already been allotted, the Company has a requisite liquidity available at its disposable, which includes INR140 crores of a gross general corporate purpose proceed with the Company addressing the IPO and with this existing liquidity, the Company is fully equipped to fund its HAM projects, which are likely to start in the next two quarters. But yes, as I repeat, whenever the Company feels that the Company is getting a good opportunity for the monetization of its HAM asset, the Company would be exercising the best option in the largest interest of the stakeholders.
Jainam Jain
Okay, sir, that answers my question. Thank you so much and all the best.
Bhagat Singh
Thank you.
Operator
Thank you. The next question is from the line of Varun Arora from Care Health Insurance. Please go ahead.
Varun Arora
Hi, sir, and thank you for the opportunity. Sir, if you can give me the outlook for the second half of FY25, since right now on standalone basis, we are standing at revenue of 1,500 [Indecipherable] So can we expect the same revenue trajectory for the H2 or is it we can do any betterment than this? Are we expecting something better than this, I mean, some sort of number actually if you can give?
Bhagat Singh
Ramneek sir?
Ramneek Sehgal
I’ll answer. No problem. So if you see previous records also, not only us, other EPC companies also, normally the quarter three and the quarter four is the best ones and we always try to achieve our best and we have delivered also before as it’s a future statement, I can just say one thing that we have a great and robust order book value with us. Our — we are expecting and targeting to start at least two to three new projects in coming next one and a half quarter. So yes, we are looking forward to good revenue coming from next 1.5 quarter.
Varun Arora
And any — if you can give any idea for FY26 altogether?
Ramneek Sehgal
So normally, we always look for organic growth but — and we always keep up on conservative figures. But yes, if you see the previous records, we’ve always delivered better than what we have spoken. And this 1.5 quarter, which is balanced now, we are of course expecting better than what we have done before. And I mean, as compared to what has been delivered in quarter one and quarter two. And quarter two, we always have a rainy season due to which more money gets stuck and the revenue received is less. Whereas in quarter three and quarter four are always the favorite quarters for the EPC companies in the country. And as I said before, if you see not only us, other EPC players also, the best quarter is the quarter four, and quarter three is second best. And quarter one, quarter two always support. But yes, the numbers will be better. Yes, we are targeting to achieve better numbers.
Varun Arora
Okay, okay, okay. And the margin will be same — are we trying to same [Indecipherable] same level for the — going forward for the H2? It’s 12.5% or 12.6% on a standalone basis, sir, correct, sir? So are we going to replicate the same or are we going to see some betterment in this, like 14%, 15% in the range?
Ramneek Sehgal
So we always work for the betterment. We are targeting the bonus. As we spoke earlier, we have already seen one bonus in the first quarter for Malout Abohar Sadhuwali. We are targeting one more bonus, which could be for Bathinda Dabwali. The — I mean, it will be completed super ahead of schedule. So with that bonus coming, yes, it will improve. It always depends upon the bonus, subcontracting payment, the quarter improves and yes, we will definitely try to achieve better than what we have done before.
Varun Arora
Okay, sir. So your order book is just around INR12,000 crore or somewhere around.
Ramneek Sehgal
Yes. Yes.
Varun Arora
And what will be the executionable time for this order book or in H2 and in FY26? What’s your target to execute this order book? Not entirely, of course, but in the phased manner, what will be your target, sir?
Ramneek Sehgal
So we already — Bhagat ji, please answer this question.
Bhagat Singh
Yeah, sir, sure. So total order book, so I give you the reply in multiple parts. So first part is, so total order book, as it stands at INR1,21,532 million, so the total time period of execution is on an average basis is two to 2.5 years. Particularly the HAM takes two, 2.5 years. If you ask me about the EPC, so we have already answered that we are expecting the execution in a phased manner. Last year, we achieved a turnover of INR2,952 crores. We’re expecting this year turnover in line with our guidance, that is 15% growth rate, 15% to 20% growth rate this year. And accordingly, we feel that the execution — the order book to execution ratio of the Company would be in line with the previous track record of the Company.
Varun Arora
Okay, sir. Okay. Thank you, sir. Thank you so much.
Operator
Thank you. The next question is from the line of Parth Thakkar from JM Financial. Please go ahead.
Parth Thakkar
Hello. Hi. Yeah, thank you for the opportunity. I just wanted to ask when do we expect the appointed dates for VRK 11, 12, Northern and Southern Ayodhya and Moga-Barnala?
Ramneek Sehgal
So, Ayodhya, we are targeting in next quarter. And same is with the case of Jharkhand. Jharkhand, the state has elections that should get over. But we’ve already allotted the work of utility shifting to a contractor. They’ve already started working on the site. And we are really targeting to start at least package 12 in the next quarter though we have pushed our teams to start both the packages, but I think the three packages will be started in — maximum in last quarter.
Parth Thakkar
By next quarter, you mean like fourth quarter, like not 3Q, right?
Ramneek Sehgal
Yeah. So we are targeting three, but it’s hardly 1.5 months left now. And fourth quarter, we assure that Ayodhya will be started, both the projects that will really help us in pushing our revenue and everything. And Jharkhand, again, as I said before, one package is very clear, we should start. And the second one, we are trying our level best because once you mobilize, we are very lucky that we have two, two projects together. So in totality, if you see Jharkhand, about INR2,900 crore together. And in Ayodhya, we have INR2,500 crores together. So this will really help us to boost our revenue for next 2.5 years in a row.
Parth Thakkar
And what will be the equity requirement for those Ayodhya projects?
Bhagat Singh
The equity requirement — Yeah, yeah, please, sir.
Ramneek Sehgal
Bhagat ji, I just want to add one more thing. We were allotted Bhubaneswar Metro. That work has started.
Bhagat Singh
Yes.
Ramneek Sehgal
That’s for INR900 crores, that work has started already. And we’re trying to start the fourth project also, which is the bus terminal in Kanpur. All three metro projects are in good swing.
Parth Thakkar
So, yeah. So equity requirement for those Ayodhya projects, sir?
Bhagat Singh
Yeah, sir. Those are — total requirements of equity for Varanasi, Ranchi, and Jharkhand project is INR494 crores and as far as these two Ayodhya projects are concerned, so total equity requirement for this project would be close to INR350 crores.
Parth Thakkar
Including both, right, or each? Yeah, yeah. Both. Yeah.
Bhagat Singh
Okay. And also if I could squeeze in one more question. Please.
Parth Thakkar
What would be our bid pipeline target, if you can just quantify and break it up also for us?
Bhagat Singh
Come again, please. Can I request you to repeat the question, please?
Ramneek Sehgal
Yeah. So Bhagat ji, I’ll answer. So bid pipeline, we have already quoted projects more than INR10,000 crore and we can see a lot of bids coming in next three, four months. Normally if these bids get received, we would have another INR8,000 crore to INR10,000 crore. Sometimes what happen, department extends the timeline and we don’t see any dirt of work, and our order book value is great. You can see that. The visibility is very clear for next three, four years.
Parth Thakkar
Okay, thank you, sir. I’ll get back in the queue.
Operator
Thank you. The next question is from the line of Dhaval Jain from Sequent Investments. Please go ahead.
Dhaval Jain
Hello, sir. Sir, I just wanted to know how do we have the revenue recognition for the projects that we do.
Bhagat Singh
So the revenue recognization for the projects of our company, just like it is in accordance with the Ind AS, so we follow the POCM, percentage of completion method across all the projects. And on the basis of the percentage of the completions of each and every project, the revenue is being recognized. This statement is for revenue recognization on a normal basis. As far as bonus and claims are concerned that we recognize on receipt basis.
Dhaval Jain
Okay, sir. So there’s a percentage commission already. So just one more thing.
Bhagat Singh
It is an Ind AS requirement.
Dhaval Jain
Right. And sir, at the present stage, like you said that there’s a INR10,000 crores that we have already quoted for and there’s another INR8,000 crores to INR9,000 crores that we might be bidding for. What is the percentage win rate that historically our company has had?
Ramneek Sehgal
So we bid on our EBITDA margins, which is a two-digit EBITDA margins, that’s more important than any strike rate. So we need to hit our bids on our EBITDA margins. Company like us, we are a growing company and for us, order book value has never been a pressure. So for us, we can bid more number of bids and we have available lines in terms of bid security, surety bonds, PVGs. And we are blessed with like we can bid up to, say about INR10 billion also because we have spare — about INR800 crores of spare lines. So what I’m saying is for us, there is no challenge, no pressure of getting contracts aggressively. We want to maintain our EBITDA levels so we can bid for more projects. And we have about 11 verticals. If you are not getting in road, we’ll get an elevated. If we are not getting elevated, we’ll get in metro. Not metro, we’ll get in railway or railway, airports. So we will be bidding consistently on our EBITDA margins and we look forward to maintaining that and get contracts on our separate EBITDA margins. Thank you.
Dhaval Jain
And sir, one last question. Like, we have an order book of around INR12,000-plus crores right now. Is there any way that we have — we can be maintaining this order book going forward with the execution that we are doing or our order book will increase as well?
Ramneek Sehgal
So I think our order book will increase. If you see before IPO, our order book value was INR9,200 crores. So we have gone up to INR14,000 crores, we’ve already done INR1,500 crores. So we have already quoted more than INR10,000 crore and we have another pipeline ahead next three, four months. So I think the order book value, as I said before, we don’t have a pressure and we are bidding and we — the few verticals where there is lesser competition and we’re expecting better order book value. And as I said, whatever our target is, we are ahead of schedule of that target in getting order book value. And as we have more verticals, geography-wise, we are spread in more than like 13 states. So getting order book is not a problem, and that’s a healthier part of a company.
Dhaval Jain
Right, sir. So that’s all from my side. Thank you so much.
Ramneek Sehgal
Pleasure.
Operator
Thank you. The next question is from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Darshil Jhaveri
Hello, sir. Good afternoon, sir. Thank you so much for taking my question. So firstly, congratulations on a great set of results. Hello. Hope I’m audible.
Ramneek Sehgal
Yeah, you’re audible. Thank you so much. Thank you so much.
Darshil Jhaveri
Yeah. So, sir, a lot of — some of my questions have already been answered. So just wanted to, just ask like a broad-based question, like what is — like currently I think 86% of our order book is into roads, highways. So what’s the plan? Like what is the optimum we want in different sections like railways, metros and other places? As well as like, will we be able to maintain our margins? That’s my first question, sir. If we are diversifying into other things, will we have to — because are they lying in our core competencies or how will it move ahead?
Ramneek Sehgal
So, good question. Thank you. So we — if you see our order book value coming for road, it’s not typically road roads. We are more into specialized structures, elevated. We are doing one of the country’s longest four lane elevated in Bihar, Patna which is about 20 kilometers. We have just completed one of the longest six lane elevated which is Delhi Saharanpur about 11.24 kilometers. We are doing one bridge on Kosi. We’ll be doing about two bridges in Ayodhya, about 6 kilometers. And we are going into more specialized jobs where there is no rat race and we have to compete with the top five, seven companies in the country.
And metros are the same kind of work, what we’re doing in elevated. Metros, we are really looking forward. If you see, we started getting metro contracts around February, March, and till now we have about three contracts, Kanpur, Agra, and Bhubaneswar. So in totality, it’s close to about $200 million.
And our structure work order book value is about 60% of our total order book value. And we are bidding for some other specialized projects also, which I can’t tell you right now but once we back those contracts, definitely it’ll be announced through SEBI. But we are avoiding the rat race, going into highway bidding, highway bidding and we are going to specialized bidding. And I said before we have 11 verticals and we’ve been doing all these work for decades. So if we are doing road, elevated, specialized structures, railway lines, which is again elevated — mix of elevated and blanketing work, and road work, we’ve already quoted for a INR2,000 crore project near Haryana. And besides this, we are looking forward to more metro projects, more elevated structures, and complex structures as there are hardly any — I mean good players in this field of specialized structures.
And we’ve been competing with L&Ts or NCC or FCOMs and there are hardly seven, eight players in the country because with Ceigall is we are spread in a great geography. We have to — we already crossed 13 states. So if you’re not getting projects in Punjab, doesn’t matter, we’ll get it in Jharkhand or Bihar or UP. So that’s about us. Thank you. I hope I answered your question.
Darshil Jhaveri
Yeah, yeah, sir, that helps a lot, sir. And sir, one like a bit more broad-based question. Like we said that we are looking to grow forward to like 15%, 20% growth rate right now. But so, in like for the next two, three years, where do we see like what’s like our vision for the next three years, where do we want to see the Company like in terms of revenue, what kind of growth are we looking at, sir?
Ramneek Sehgal
So we are a growing company. The journey has just begun. So if you see EPC companies in India, they started getting into better geography or adding more verticals when they have reached a level of INR6,000 crores, INR8,000 crores, wherein Ceigall, we started doing when we were INR2,000 crore. So I feel proud and happy to say all thanks to my management and team that we are already present in more than 13 states. We already have about 11 verticals. For us, we always say a conservative figure that we are growing at organic way, which is about 15%. But we’ve already delivered — we have delivered also before also, we’ve been one of the fastest-growing company reported by CARE. It was there in our DRHP also and we always maintain that we want to grow organically. But of course, the way we are growing, you have seen us — you’ve seen our results before also and we tend to grow like this. I always say it’s a young company, our journey has just begun and Ceigall 2.0 has begun and we want to deliver and we want to grow with the investors.
Darshil Jhaveri
Okay. Okay. Fair enough, sir. Yeah, that’s it from my side, sir. All the best.
Operator
Thank you.
Ramneek Sehgal
Thank you so much.
Operator
The next question is from the line of Parth Thakkar from JM Financial. Please go ahead.
Parth Thakkar
Hello. Thank you for the opportunity again. I would like to ask how do we see the debt moving in the second half of the year, and will the interest cost be similar to what it was in the second quarter?
Bhagat Singh
Hello. Sir, can you please repeat the question?
Parth Thakkar
So I just wanted to ask, how will the debt move in the second half and will the interest cost be in the same level as what it is currently?
Bhagat Singh
Okay. So, sir, two things. One is as on date September, we have reported a standalone debt of INR349 crores and a gross debt of INR994 crores. So the Company in line with the execution of the order book, the Company is raising the working capital or a long-term loan from the market and accordingly utilizing the same for the support of the EPC project. We feel that as of September 2024, our debt-equity ratio stood at 0.21. So on an average basis on December and March, we’re expecting to be in the range of 0.21 to 0.25. Because the Company’s cash accrual are consistent, the liquidity position is strong, and considering the same, we are not expecting the debt level to grow further beyond this debt-equity ratio. This is the first part.
Second is as far as the interest costs are concerned, so since now the Company is listed, we are renegotiating with the bankers for the betterment of the pricing, be it a BG charges, be it a margin against the funded debt, and also against the rate of interest on the fund base limit. And the Company is also negotiating for the reduction of the margins for the working capital limit from 20% to 10%. So multiple things underway. The Company finance and accounts department and other departments are focusing on multiple value engineering processes to improvise the margin and to support it and trying to maintain and grow it at a future level.
Parth Thakkar
Okay. Thank you, sir. That was very helpful. And also one last question. What would be our equity requirements for the entire portfolio and what period would we be investing it?
Bhagat Singh
Sir, total equity requirement, just I mentioned, therefore, Varanasi, the total equity requirement is close to INR494 crores. For Ayodhya, both the projects put together, the equity requirement is INR350 crores. As Ramneek sir has just informed that we are targeting to commence three projects in the last quarter of this financial year. And we have the requisite equity requirement for the commencement of these projects as and when they will start. As per the financing agreements which have been done with the respective bankers, the total equity requirement, which I just mentioned, 50% need to be infused at the time of appointed date and remaining 50% in line with the cash flow requirement.
And this is — and this — what I just stated that the Company has liquidity, this liquidity is on the basis of present unencumbered FDR, internal accruals and general corporate funds lying with the Company. There is no consideration of any monetization as of now. If any monetization take place in future whenever the Company or management feels so, it could be additional liquidity support to the Company’s liquidity position.
Parth Thakkar
Okay. Thank you. Thank you, sir.
Operator
Thank you. The next question is from the line of Himesh Shah from Cruise Investments. Please go ahead.
Himesh Shah
Hi, sir. I just mainly had one question. When are we expected to get the dates for the Varanasi-Ranchi-Kolkata Highway Project?
Ramneek Sehgal
Hi, thank you for the question. I said it before also. We are targeting in the next quarter, I think, but Ayodhya will start for sure in the last quarter, both the projects.
Himesh Shah
Okay. And also, you mentioned that revenue would grow in the same way as it has in the previous years. But this quarter, it has remained flat. So do you still maintain the same guidance?
Ramneek Sehgal
But Bhagat ji, our revenue has grown from last year second quarter. Yeah, please answer.
Bhagat Singh
So the guidance — the — our top line, as I just mentioned in the call, our top line, the stand — the revenue from operations if you exclude this bonus and royalty on a standalone basis, it has increased by 16.3% as compared to the corresponding quarter of the previous year.
Himesh Shah
Okay. Okay. Understood. Thank you.
Operator
Thank you. The next question is from the line of Sunidhi Joshi from Prime Investment. Please go ahead. Sunidhi Joshi, please go ahead with a question. Your line is unmuted. Sunidhi Joshi, please go ahead with a question. Your line is unmuted.
As there is no response, we’ll move to the next question which is from the line of Sahil Vora from M&S Associates. Please go ahead.
Sahil Vora
Hi, good afternoon. Thank you for the opportunity. I just had a couple of questions. My first question is regarding the Ludhiana Bathinda Package 2 Greenfield Project. Sir, as I understand we won that project in 2021 and we have still not been able to manage appointed dates. So I just wanted to understand the thought process there. And is the Company planning to retain it or something else is planned, so if you can shed some light on that?
Ramneek Sehgal
So, good question. Thank you. If you see Bathinda Dabwali, we quoted in 2020 October, I think. So this work got started last year ’23 after three years — around three years. August 11 was the appointed date, if I’m not wrong. Appointed date is always issued by government when they give us the land. [Indecipherable] of this project is done. But we are waiting for the final land. Once the land of more than 80% is given, then only appointed date is given. We have got some possession of the land. But we are looking forward that government will help us getting us more land. And once we get it, the appointed date will be issued.
There is — it’s always beneficial if the credit is getting delayed for the Company because we are getting a lot of escalation. And we don’t have any pressure to start that work only because we have a good amount of work already in our hand. And still, whenever it gets started, we are looking forward to start the project also, because we are very much present in that area. We have up camps there. We are already completing one project which is Delhi-Katra Expressway, which is almost near to that project.
Sahil Vora
Okay. Thank you, sir, for the clarity. My next question is how many project bids have we submitted so far where the bid opening has not yet occurred? And how many of these are primarily in the road sector? Specifically, I wanted to understand under the hybrid annuity model.
Ramneek Sehgal
So hybrid annuity, the majority of us are — Ayodhya, we have already won. And I don’t think many projects are left in out of the INR10,000 crore. I don’t have the actual percentage. But normally, we bid as per our allocated numbers. And our amount of bids are more than INR10,000 crore, which we’ve already quoted. We have a robust order line to be bid in 1.5 quarters also. And we look forward to more complex structures, specialized structures. And it’s not important that we have to go in for a highway project. And HAM is always helpful because with HAM, the total IRR on our project is better. We make money on an equity also and make in EPC business also. So that’s about us. Thank you.
Operator
Thank you. Ladies and gentlemen, that will be the last question for today which is from the line of Sunidhi Joshi from Prime Investments. Please go ahead.
Sunidhi Joshi
Hello. Hello. Am I audible?
Operator
Yes, you are. Please go ahead with your question.
Sunidhi Joshi
Thank you for the opportunity. So there was an article Neo AIF is going to pick up equity in Punjab Road project for around INR450 crore. Do we have any update with regards to this?
Bhagat Singh
Ma’am, this is a futuristic statement. So I think with the management whenever the information regard from the management’s reliable sources would be there, the Company officials would itself inform the media. Still that time, we don’t want to comment on any publications, which is not certified by the management resources.
Sunidhi Joshi
Okay. No issues. And I mean…
Ramneek Sehgal
I’ll just add here something. I’ll just add here something. Company always negotiate and look forward for the better turnout of the HAM projects. And whenever we get the best, as I said in during our roadshows also, we are an asset-light model and whenever there’s a requirement of the equity, we’ll definitely go ahead with selling of the existing HAM projects. Thank you. And as Bhagat said very clearly, whenever it’ll be done, we’ll announce it in a nicer way, I mean through SEBI, of course. Thank you.
Sunidhi Joshi
Thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Ankit Jain for closing comments.
Ankit Jain
Thank you, Rituja. I would like to thank the management for taking this time out for the conference call today and thanks to all the participants. If you have any queries, please feel free to contact us. We are Orient Capital Investor Relations Advisors to Ceigall India Limited. Thank you so much.
Operator
[Operator Closing Remarks]