Dhruv Consultancy Services Ltd (NSE: DHRUV) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Jainam Savla — Analyst
Ankit Sonawane — Company Secretary and Compliance Officer
Pandurang Dandawate — Chairman, Non-Executive Director and Promoter
Analysts:
Rachna Sharma — Analyst
Mahesh Seth — Analyst
Viraj Yadav — Analyst
Sarah — Analyst
Kush Tandon — Analyst
Aditi Roy — Analyst
Babu George — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Dhruv Consultancy Services Limited Q2 and HY — FY ’25 Earnings Conference Call hosted by Kirin Advisors. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Jainam Savla from Kirin Advisors Limited. Thank you. And over to you, sir.
Jainam Savla — Analyst
Thank you. Good afternoon, everyone. On behalf of Kirin Advisors, I welcome you all to the conference call of Dhruv Consultancy Services Limited.
From the management team, we have Mr. Pandurang Dandawate, Chairman; Mr. Snehal Patil, Chief Financial Officer, Mr. Ankit Sonawane, Company Secretary.
Now, I hand over the call to Mr. Ankit Sonawane for opening remarks. Over to you, sir.
Ankit Sonawane — Company Secretary and Compliance Officer
Yeah. Good afternoon, esteemed ladies and gentlemen.
I extend a hearty welcome to each one of you who has joined us today for Dhruv Consultancy’s investor call where we will delve into the financial results of the second quarter of fiscal year 2025. Your participation and interest in our company’s performance are highly valued. During this session, we will offer a concise overview of our Q2 FY ’25 financials, providing insights into our achievements, the challenges we have faced and outlining our future strategies.
But before we immerse ourselves in the numbers, let’s take a moment to reflect on our journey thus far. Founded in 2003 and headquartered in Navi Mumbai, Dhruv Consultancy stands as a beacon of excellence in infrastructure consultancy. Our commitment to delivering comprehensive services spanning design, engineering, procurement, construction and project management has positioned us as a trusted partner in the realm of infrastructure development. Our diverse service portfolio includes meticulous preparation of detailed project reports, conducting feasibility studies and specializing in operations and maintenance works. From project planning and designing to technical and structural audits, we emerge as a strategic ally for investors navigating the intricacies of infrastructure projects.
Let us now delve into the prominent achievements and milestones attained during the Q2 of financial year ’25. In our recent quarter, the company has demonstrated significant achievements in Q2 FY ’25 with several key milestones. We are actively pursuing international opportunities with Expressions of Interest submitted for 145 projects across African and Southeast Asian markets, funded by organizations such as the Asian Development Bank and World Bank, African Development Bank.
Of these, we have been short listed for 21 projects and are in advanced stages with 10, having submitted financial proposals. We are excited to announce that our first international order has been secured in Mozambique, valued at $5 lakh, marking a significant milestone in our global growth strategy. [Technical Issues] INR347 crores to be executed over next two year to three years. Additionally, we have submitted bids totaling INR700 crores with results expected soon.
Looking ahead, we plan to submit bids worth INR1,500 crores, with an anticipated financial order book of around INR800 to INR1,000 crores, including international projects. The recent preferential allotment of 30,77,800 equity shares at INR108 per share totaling INR33.24 crores, will further strengthen our financial position to support these growth plans. Noteworthy contract wins include high-speed corridor project in Gujarat valued at INR5.7 crores and an NHAI project for Aligarh-Palwal Highway four-laning, jointly secured with Global Infra Solutions and Civisor Ingenieria worth
INR4.74 crores. These achievements coupled with technical scores consistently above 95 underscores our commitment to excellence and our competitive edge as the only listed company in our sector.
Now, let’s take a closer look at company’s financial performance. In Q2 FY ’25, Dhruv Consultancy Services Limited achieved robust total revenue of INR32.92 crores, marking a strong year-on-year growth of 42.88%. The company’s EBITDA stood at INR3.95 crores, reflecting a healthy EBITDA margin of 12%. Profit after tax reached INR1.89 crores translating to a PAT margin of 5.73%. Diluted EPS were at INR1.77, demonstrating consistency with last year’s performance.
For H1 FY ’25, Dhruv Consultancy Services Limited reported impressive total revenue of INR52.93 crores, representing year-on-year growth of 53.19%. The company’s EBITDA came in at INR6.77 crores with an improved EBITDA margin of 12.79%. Profit after tax amounted to INR2.76 crores, maintaining a PAT margin of 5.22%. Diluted EPS was at INR1.72, aligning closely with last year levels.
Before we begin the interactive session, I would like to express my heartfelt appreciation to our esteemed stakeholders. Your unwavering support has been instrumental in our growth journey, and we deeply value the essential role you play in our continued success.
Now, I warmly invite you to join us in the question-and-answer session. Your insights and enquiries are invaluable, and we look forward to a fruitful discussion. Thank you once again for your presence and steadfast support.
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 Rachna Sharma [Phonetic] from HNI. Please go ahead.
Rachna Sharma
Hello. Am I audible?
Operator
Yes, ma’am, you are. Please go ahead.
Rachna Sharma
Thank you so much for providing me this opportunity. My question is, with the diluted EPS aligning closely with last year, what is your outlook for EPS growth given the expected expansion in order book?
Pandurang Dandawate
Order book today, unexecuted INR300 crores. I’m Pandurang Dandawate, Chairman and Non-Executive Director of the Company. The executed order book stands today at INR300 crores, and the submission of bid to the extent of INR700 crores roughly comes to about INR1,000 crores in a period of next one year and unexecuted order book should be double. So, we’ll have a straight positive impact on EBIT and PAT of the EPS and diluted EPS.
Rachna Sharma
Okay, sir. Thank you so much for answering my question. That’s it from my side.
Operator
Thank you. [Operator Instructions] The next question is from the line of Mahesh Seth [Phonetic], an Individual Investor. Please go ahead.
Mahesh Seth
Hello.
Operator
Yes.
Mahesh Seth
Yeah. Good afternoon, sir, and thank you for the opportunity. Sir, my first question is with new capital raised, how will you ensure that the return on this investment meets or exceeds the cost of capital?
Pandurang Dandawate
With the capital raised, we are definitely increasing the business in two-fold. One, we have started buying the equipment — state-of art-equipments, which are very useful for testing the things in a private sector. We have already deployed our one FWD, that is falling weight deflectometer at a cost of about INR2.5 crores machine round the clock to the airport near Navi Mumbai, which is making completion. And with that experience, we have seen lot of opportunities and growth in the testing and equipment sector in a private sector. So, with this raise the capital, we have first decided to buy equipments to the tune of about INR9 to INR10 crores, which orders are already placed and they are on the way. Mostly, they are from Germany and Denmark and Switzerland.
Secondly, we have started repaying the debt, which was high interest rate coupons and of course, the CC of the bank, which is to be utilized now in a minimum way, so working capital requirements shall be fulfilled from equity side fund raise only. Thirdly, we had saturated in our bank guarantee limits, which are to be submitted as a performance bank guarantee to the government assignments. And with this additional capital, we are now in a position or we are in a best position among our competitors to bid more in number because we are sure of now the bank guarantees, which will be of the 100% margin. So with effect of all this, definitely, the increase in, you can say, unexecuted order book and of course, top line and the PAT and the EBIT, it should be much more than what capital we are deploying on the project.
Mahesh Seth
Okay, okay. Got it. So with the new raise capital, we are purchasing new equipments and machineries and expect the business to grow two-fold, right?
Pandurang Dandawate
Two-fold and of course, this bank guarantees now stopping our bid process and competition because we had no bank guarantee limits prior to the fundraising. Now, that limit is over. And now one more additional thing. Last year, we were ranked as one of the 10 consultants in India. Now, we are ranked in top five consultants in India. And of course, winning the first assignment in international market, we are very much sure of getting good business in international market, which normally we bid at very high profitability or EBIT not less than 35%.
Mahesh Seth
Okay, okay. That’s great to hear, sir. And my next question is as the only listed company in your sector with a high technical score, how do we maintain this advantage against both domestic and international competitors?
Pandurang Dandawate
Surely. Technical score, just for information to the listeners, 80% weightage is given to the technical score and 20% weightage is given to the financial score. So higher the technical score, obviously, higher is the possibility of winning the bid. That is part one, that is a business. And definitely, higher can be the profit margins and EBIT because roughly the one mark carries weightage of about INR50 lakh. So if I score two marks more than my competitors, so I can bid even INR1 crores more than my competitors with safe win. So, this is a two-fold win for high technical score. And that is going to happen in another two years, three years in a big way, for the reason now if you have heard about the agenda of this third time repeated government what we call NDA government now. The speeches of the Honorable Prime Minister and other ministers and bureaucrats, they are always saying that the speed of the execution of the infra projects will be doubled, means whatever they executed in 10 years that will be executed — double will be executed in five years. So obviously, all these has a straight impact on our business in a positive way.
Mahesh Seth
Okay, okay. Got it, sir. Thank you, sir. That’s it from my side. Thank you for answering.
Operator
Thank you. The next question is from the line of Viraj Yadav [Phonetic] from Raj Industries [Phonetic]. Please go ahead.
Viraj Yadav
Am I audible?
Pandurang Dandawate
Yeah.
Viraj Yadav
Okay. Thank you for the opportunity. My first question is, your EBITDA improvement is notable. So, could you please explain the specific measures taken to enhance our operational efficiency?
Pandurang Dandawate
We don’t have any operational deficiency right now. Very few things are there minutely observed because since we are public limited listed company, we have the system of internal auditor. Of course, external auditors’ people, we publish our results, maybe limited review or maybe annual reports. So from operational, I’m not saying it is a deficiency, but since we were initially working in two or three states of India and now we have the pan-India presence, we are working right now in 28 states of India out of 30 and we have also won international assignments. So to avoid any operational deficiency like the distant criteria or the communication criteria — communication limitations in Northeast part of country, where the access to Internet is limited and some unrest in a few states, which occurs considering our large size of our country, so we have taken few steps after this Q2 that we need vehicles for supervision on each site.
So, that all vehicles either diesel driven or petrol driven and having a monthly rent of about INR60,000 to INR65,000 because government need a latest vehicle as per their specification. And of course, you can say, they specify the model also like six-seater or five-seater. So, we decided to go for electric vehicle wherever there is possible or we decided to go for CNG where the cost reduction will be substantial in terms of traveling cost and the overheads. Rest of the things, manpower, that we cannot have much — we don’t have any losing part because all is a system driven and we all have the cap system and software-driven HR management. So, operational deficiencies are not there. We are very much focusing on increasing our revenue and EBIT and PAT.
Viraj Yadav
Okay. And could you give more details about the order of INR5.7 crores high-speed corridor project in Gujarat and its anticipated completion timeline?
Pandurang Dandawate
Right now, we are at mobilization stage and we cannot comment upon unless we take over the project supervision completely. Its mobilization is in process, and all agreements and all that things are in process. Once we get the letter of acceptance from client, we disclose it to the exchanges and in the public. Now after that, we have to submit the bank guarantee. Then there are agreements. Then there is the interview of our key professionals and then they allow us to go on the site.
It is a very slow process. And of course, if there is a problem from contractor side or the client side like if it is a HAM or BOT, the financial close has to be there before start of work. That is not our lookout. If the issues are there for land acquisition or forest clearance, environment clearance, again that is not our purview. So, when all these things are cleared on the site, then we are allowed to deploy our manpower on the site, and then only expenditure and bill revenue both starts. So right now, I’m not in a position to comment upon on this. But in any of the next investors meet, maybe after one month or so or after Q3, I will be in a position to give you the details of the project.
Viraj Yadav
Okay. And regarding the INR4.74 crores NHAI project, what are the key deliverables and how will the joint venture with Global Infra Solution and Civisor Ingenieria work?
Pandurang Dandawate
In a joint venture, other players has no role to play. For the reason, we when bid in joint venture, suppose we bid with say Global for example, say four bids and we are leader in two and they are leader in two, so if we win only two, then one is executed by us and one is executed by them as a lead. And we don’t have any right on them and they don’t have any right on our revenues or profits and losses on this. So, this particular project is our project. And again, the same thing is there. Right now, mobilization is not finalized, fully done. It is partly mobilized.
Viraj Yadav
Okay, sir. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of from Sarah [Phonetic] from DY Capital [Phonetic]. Please go ahead.
Sarah
Thank you for the opportunity. Sir, my first question is that I see a big jump in other expenses from INR13 crores to like INR23 crores, what could be the reason behind it?
Pandurang Dandawate
From here [Phonetic], so take it with the revenue also. Revenue is jumped from INR20 crores to INR32 crores. That is, I think, 1.5 times the Q1 and the INR32 crores revenue or top line is highest ever in the history of company after the listing. So obviously, more the revenue, more the expenditure. So, expenditure is related to number of sites. So, we have one first international assignments. So obviously, expenditure has to increase because our EBIT and PAT is with a fixed range.
Sarah
Okay. When you mention the first international, you are talking about Mozambique, right?
Pandurang Dandawate
Yeah. Correct. Correct.
Sarah
Yeah. On that, when we are going to see that reflecting in our income?
Pandurang Dandawate
First bill is submitted already on 11th of November, and we are expecting a first payment in dollar in a period of another five days, six days maybe 9th or 20th of November.
Sarah
Okay. So, we could see that in this year only maybe in quarter three or quarter four?
Pandurang Dandawate
[Foreign Speech]. Assignment of first six months for DPR and cooling period and again, I think, it is for supervision. So in a period of two years, 100% of the revenue of INR5 lakh is expected in coming years [Phonetic].
Sarah
Okay. Sir, currently we have around INR347 crores of order book and like orders for the next two years to three years. So how is the domestic order distributed across this different segment?
Pandurang Dandawate
As I explained, if you see the political speeches or the speeches of the ministers and bureaucrats after the start of NDA government working, that is third time continuing Honorable Prime Minister of India in the chair, again and again, they are saying that they are doubling the speed of the infrastructure projects, particularly, of course, the highway which is the major chunk of the infra. And doubling the speed of the execution means whatever they have done in 10 years, they will achieve two times than that in next five years. So, sky is the limit for Dhruv because we are now scoring highest ever possible marks, number one. Number two, we are now among the top five consultants in India. So, Indian market, domestic market, definitely, our order book is going to be doubled in a period of one year or so. So straight away, impact on the revenue, EBIT and PAT, and additional income from additional work orders from international market, that will add to the beauty of the business.
Sarah
Got it, sir. My second last question is that any promising project among the INR700 crores bids we have submitted. So how much would be — if you have a number like how much would we be successfully getting there?
Pandurang Dandawate
If you see our last year success ratio which is available, I think, on websites also, last year we had a success rate of 21%. Now, here we increased the, you can say, technical score, increased equipment banks, reached the top line and profits, we are definitely increasing our striking rate. I should not say — but NHAI and MoRTH nowadays are very hard and strict [Technical Issues]. And in last six months, four of the top consultants in India are debarred or blacklisted for poor service on the site. So, it is not good to say. But competition has been reduced, so giving more opportunity for striking rate achievement more than 25%.
Sarah
That’s good. My last question is that what challenges do we foresee in executing the current order book and how you are positioned to meet these targets?
Pandurang Dandawate
Sorry, your voice was cracking. Can you repeat last question?
Sarah
Sir, my last question is that what are the challenges do we foresee in executing the current order book and how our team and how Dhruv as a company is ready to face those?
Pandurang Dandawate
Challenges, you are asking, madam?
Sarah
Yes. Yes. Yes. Challenges in executing the current order book?
Pandurang Dandawate
Yeah. Yeah. Executing the current book — order book, there are no challenges. As I explained in one reply, we have the pan-India presence now and we are improvising our systems. We have our regional offices located at every site, and we are controlling that site through AI also and, of course, all that Internet facilities. So, order book execution is not big challenge for Dhruv. Secondly, few challenges are definitely there as a business like elections, for example, Maharashtra is now having the assembly elections. Voting is on 20th, and results are on 23rd. So, there is code of conduct going on. So, our business is — not business, our work orders or letter of acceptance of projects or even scrutiny of the tender submitted is at halt because government machinery is busy in the election processes.
So, these are the few challenges we are facing. So to avoid that challenges, we have started bidding with different clients. Like this year, we added MSIDC as a new client, GSRDC as a new client. UPEIDA last year, we added as a new client. Now in international markets, ADB funded project in Mozambique, we added a new client. So, started hunting the business in a private sector. We have already got three. You can say thanks for the proposals. One is from HCC for Dharamtar Creek safety consultancy, one is from GR Infra from for Pune Ring Road and third is one Chinmaya Vibhooti mission spiritual organization, some internal roads supervision of the work.
So the private sector has no such bars like government have submission of bank guarantees, limit crossings in the bank guarantees or this code of conduct. So, we are — and equipment bank equipment testing, we are increasing the equipment banks. So, we are also adding private business in our order book and widening the client base. So, this will take care of the political and local challenges or geographical challenges, which we are facing with limited clients mostly the NHAI and MoRTH.
Sarah
Okay, sir. Thanks for putting up with my questions, and I wish you continued success.
Operator
Thank you. [Operator Instructions] The next question is from the line of Kush Tandon from Ananta Capital. Please go ahead.
Kush Tandon
Yes. Good afternoon, sir. Thank you for the opportunity. Sir, just wanted to understand, is there any one-time expenses in our P&L for Q2 because revenue went up significantly, but expenses went up more than the revenue in terms of percentage growth. So, just wanted to understand was there some accumulated expenses of past quarters that have been put in this quarter and how do you see that going ahead?
Pandurang Dandawate
No, it is not like that. Basically, we have the mobilization expenses as I already explained in previous reply, before the first bill is received in our accounts. So, mobilization expenses are for a period of three months and we have to pay traveling cost. We have to pay the bank guarantee margins. We have to pay business development expenses. So, all that expenditure has shoot up because of the mobilization expenses, which we have got extra orders in this Q2 and of course, accumulated orders have come in Q2, other than what we have disclosed on the exchanges. Because we declare on the exchanges letter of acceptance, LoA. Between LoA and work order, there is a period of two months and from work order to first bill, there is a period of another two months. So, all that was accumulated in the month of April and May. That was the election period for Central Government. That all you can say expenses are coming in Q2 because we had the limitations because of code of conduct to do a lot of things.
Kush Tandon
Okay. So, sir, what you are saying is because project starts, you have to incur expenses and revenue may not have started. So, there was some bunch up of expenses because of project execution in Q2 and some of Q1. So going ahead once the revenue starts, these expenses will also normalize. So, I think we can expect profit margin to improve going ahead, sir?
Pandurang Dandawate
Definitely. As I explained, this one time, you can say as you rightly indicated, it is a one-time expenditure prior to first bill. Now the expenses, this first one-time expenditure will be spread over another 10 months to 12 months revenue and it will have much less impact, means it will have definitely more EBIT and more profitability, PAT coming ahead. Revenue has started realizing. That is one.
Secondly, the bids we have submitted and we have won recently, they are with better EBIT margin because we have the good technical scores. International bid, of course, what we submitted and what we are expecting from Mozambique assignment, almost 75% of EBIT. That is our first international test. We were expecting 35% only. So, that revenue will start coming up from month of November only. So, impact of all these things, definitely, we are eyeing at more EBIT which is looking very low in the Q1 and Q2. Definitely, we have a target of much more, much higher EBIT than even FY ’23-’24, that was 17%, 18%. We are targeting much higher EBIT than FY ’24 — March FY ’24.
Kush Tandon
Okay. So, sir, basically, what you are saying is H2 — H1 had a combination of upfront expenses and lower revenue. I mean, Q2 was much better than Q1, but Q1 was impacted because of elections and going ahead, H2 can be much better in terms of revenue as well as margins?
Pandurang Dandawate
Yeah. H2 traditionally, historically, if you see any infra company or even Dhruv, we were on SME previously. So H1, H2 comparison is available for last eight years, nine years. H1 is traditionally 40%, and H2 is traditionally 60% average and EBIT and profit also in the same ratio because EBIT profit starts realizing on H2.
Kush Tandon
Okay, sir. Okay, sir. And sir, going ahead in the next H2, sir, our order book, if we ask — if we just do March ’25, if you can give some guidance how our order book will look like in the next six months?
Pandurang Dandawate
Today, it’s a INR650 crores total order book. That should reach to INR1,000 crores by end of March. So, you can say April, May is our declaration date. So up to May, I’m calculating. So, INR1,000 crores shall be the unexecuted — sorry, executed order book. And of course, all that addition will be unexecuted and minus, we have to deduct whatever is converted into revenue.
Kush Tandon
Okay, sir. So, unexecuted order book is INR300 crores as we speak?
Pandurang Dandawate
To INR400 crores plus.
Kush Tandon
So, that will be INR400 crores plus in March?
Pandurang Dandawate
Yeah.
Kush Tandon
Okay. Okay. Thank you, sir. All the best.
Pandurang Dandawate
Thanks.
Operator
Thank you. The next question is from the line of Aditi Roy from Patel Advisors. Please go ahead.
Aditi Roy
Congratulations, sir. My question is, what risk do you foresee with the international projects, particularly with compliance, foreign currency and regulatory challenges?
Pandurang Dandawate
Foreign currency, we are not facing any challenge right now because we are getting in USD. So it is on positive side, currency impact, that you can also agree. Secondly, we are working — right now, we are bidding only on the projects or assignments, which are funded by either World Bank, ADB or African Development Bank. So, any uncertainty from funding side from the local governments or local country governments, we have no straight impact, negative impact. So, we are playing very safe in the international market right now.
Aditi Roy
Okay, sir. And my next question is, are there any potential delays or challenges in the current projects, especially considering geographical diversity?
Pandurang Dandawate
Good question, madam. Any extension in the timelines of the project completion is beneficial to us. It’s very surprising. Suppose we have submitted — our bid is closed at INR10 crores for period of, say, two years, so that is 24 months. So roughly, I will get a monthly revenue of — 100 divided by 24, that is about INR4 lakhs per month. No, sorry, sorry, sorry. It is INR10 crores divided by 24 months into 100. It is INR40 lakhs. So, my revenue per month is INR40 lakhs. Suppose the project is delayed by, say, six months. But when we say project is delayed, it must be completed 70% or 80% and delays are normally not on account of consultant because we have to play only the role of supervision.
So, delay is normally from contractor side in execution or delays from government side for land acquisition, court cases, tree cutting issues, utility shifting issues, local resistance and so on. So, any extension in the timeline I will get proposed net per month payment on the extended contract. So, that is that they have to pay and they cannot replace us or conclude our contract unless the project is completed, because we are very much gelled with the project and no one will even think of changing us at the fag end of the project.
Aditi Roy
Okay, sir. And I have one another question. Do you expect the PAT margin to stabilize around the current level? Or is there a target margin you aim to achieve?
Pandurang Dandawate
Definitely. As I already explained, our H2 has much profitability, much margins because of the impact of the Central elections on Q1, our expenditures were increased, revenue was limited. Q2 excessive work orders, again mobilization expenses are there, but they are a sort of one-time revenues. And traditionally, our balance sheet says that our H2 has much better revenue, much better profit and much better EBIT. And as I explained, technical score playing very important role and international orders playing very important role. And of course, the private assignments which normally we have the profitability of 50%, but they have started adding very, very slowly month-on-month and it should increase definitely in balance period of, say, four months, five months of this year but very fine impact in next year.
Aditi Roy
Okay, sir. And my last question is, could you provide guidance on revenue margin and profitability targets for the second half of FY ’25 and any particular projects that will be the focus?
Pandurang Dandawate
Projects, we have standard bidding processes and we have the standard projects like four-laning, six-laning roads in India, iconic projects, elevated roads, then sea-links, all related. Tunnels, we added this year. All that we are bidding and we are getting it also. Sometimes with joint venture, sometimes as a sole. Now, as I explained, any infra company, H1 is normal or below average, and H2 is much better because our working season starts from Dussehra. All our — it is auspicious day in India and all contractors start their work from the Dussehra. Obviously, every planning is there from the month of October, November and that execution period ends at the end of May because then monsoon comes. So traditionally, H1 is 40%, H2 is 60% in terms of revenue, in terms of EBIT and in terms of everything.
Aditi Roy
Okay, sir. Thank you, sir. That’s it from my side and congratulations once again.
Pandurang Dandawate
Thank you.
Operator
Thank you. The next question is from the line of Babu George [Phonetic], an Individual Investor. Please go ahead.
Babu George
Hello. Am I audible?
Pandurang Dandawate
Yeah.
Babu George
Sir, my question is, can you share more details on how the INR33.24 crores raised from preferential allotment will be utilized for the growth plan?
Pandurang Dandawate
Yeah. Surely. Surely. With our plan, we had now — already expenditure is done. So, we had a plan to buy equipments to the tune of INR8 crores to INR9 crores. We have already ordered — part payment has been released and this equipment will give a good revenue to the company private sector, mainly the testing part. Secondly, working capital requirements are increasing for main reason that our bank guarantee limits with the HDFC and PNB are saturated. And any bank guarantee now to be submitted to government as a performance bank guarantee before the work order, we have now to pay 100% margins to that bank guarantees. [Technical Issues] INR4 crores, INR5 crores and another INR4 crores or INR5 crores are reserved for the same purpose. Whenever we get any enhancement in non-fund-based limits from the banks, then only working capital limits for that particular reason might be reduced or it might be continued.
Thirdly, we have purchased new office because our manpower has increased, our business has been increased, our presences in international market also. So, we have purchased an office near to our client’s office in Navi Mumbai, which again, we paid INR2 crores, INR3 crores [Phonetic] and rest of the things, mainly I can say payment of the high interest rate debt, which was an unsecured loan. Of course, part payment, part funds are utilized to reduce the utilizations of funds from the banks. They are mainly CC or working capital limits. So, all that has been done already as a breakup of INR33.24 crores [Phonetic].
Babu George
Sir, my next question is how is the revenue mix expected to shift between domestic and international operations over the next few quarters and years?
Pandurang Dandawate
I cannot comment upon quarter but year-on-year, definitely, I can quote one example of STUP Consultants, which are again based in Navi Mumbai, Mumbai, and they were in construction since 10 years back like we were [Technical Issues] and they had only started bidding internationally and in a period of another three years, four years, they started getting the work orders and in a period of 11 years, 12 years now, they have closed their Indian office. They are enjoying more profits and more business ethics in international than the Indian assignments.
So definitely, I can say we are not doing that because for our company’s nation first is our logo, our aim. So, we will definitely continue to work with Indian conditions, Indian clients. But sir, I can say to have more satisfaction on the PAT and EBIT, which is normally investors interest. We will definitely go to the extent of 30%, 35% of the order book in international market in another three years, four years.
Babu George
Sir, for international expansion, do we need any additional funding?
Pandurang Dandawate
No. Absolutely, no. We are in talks with Exim Bank. We are getting ourselves empaneled there also. And once we get empaneled with Exim Bank, then I think some funding can be — some bank guarantees at international level can be given by Exim Bank. But as on now, I’m not foreseeing any immediate fund requirements.
Babu George
Okay, sir. Thank you, sir.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Jainam Savla for the closing comments.
Jainam Savla
Thank you, everyone, for joining the conference call of Dhruv Consultancy Service Limited. If you have any queries, you can write us at research@kirinadvisors.com. Once again thank you. Thank you, everyone, for joining the conference call.
Operator
[Operator Closing Remarks]