Dhruv Consultancy Services Ltd (DHRUV) Q3 FY23 Earnings Concall Transcript

Dhruv Consultancy Services Ltd (NSE:DHRUV) Q3 FY23 Earnings Concall dated Feb. 16, 2023.

Corporate Participants:

Tanvi Auti — Managing Director

Rajesh Sindhav — General Manager Finance and Accounts

Analysts:

Vastupal Shah —

Mukesh Panjwani — Value Securities — Analyst

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Devesh Shrimali — DS Investment — Analyst

Himani Shah — Suraj Research — Analyst

Yashvanti Ketkar — Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen. Good day and welcome to the Dhruv Consultancy Services Limited Q3 FY ’23 Results Conference Call, hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen-only mode. 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. Vastupal Shah, from Kirin Advisors. Thank you, over to you sir.

Vastupal Shah —

Thank you. Good afternoon, everyone. Welcome to the Conference call of Dhruv Consultancy Services Limited. I would like to welcome management team, Mr. Pandurang Dandawate, Director of the company; Ms. Tanvi Auti, Managing Director of the company; Mr. Rajesh Sindhav, GM Finance and Accounts. I would like to hand over to Ms. Tanvi for the opening remarks.

Tanvi over to you.

Tanvi Auti — Managing Director

Thank you, Vastupal. Good afternoon, everyone. I welcome you all to the Q3 FY ’23 Conference Call of Dhruv Consultancy Limited. Infrastructure continues to be a focus of our government. And we recently saw in Union recent budget announcement, that the government has announced a capex spend of INR10 lakh crore, that is 33% year-on year increase with the FY ’20 for budget estimate. This is allocated sectors like railways, roads, defense, housing, water, metro project.

The capex to GDP is at an all-time high of 3.3%. So two sectors that stand-out in terms of the allocation are railways, which is up by 51% and roads which is up by 25%. Even during the current-period, the budget is fully utilized and we all know that infrastructure development is at a peak in the country at present. Given 50% of the total allocated capex is much for railways and roads. It is a clear indication on structurally bringing down overall the logistic cost and the economy, which are currently 14% of the GDP.

The government has allocated INR2.7 lakh crores to the Ministry of Road Transport and Highway, our Honorable Minister Shri Nitin Gadkari, said that the budget allocation to the roads and highway sectors will help build roads like the U.S. by the end of 2024. This means that there is a huge scope for consultancy services that we offer. So we are working majority in highway sectors at present.

Consultancy services accounts for close to 10% of the total project cost, that you can estimate the huge growth potential for our business. Here amendment is a key, and only qualified and an established player like Dhruv Consultancy has the opportunity to bid. And earlier the ticket size was INR2 crores, INR3 crores and INR5 crores, now INR10 crores. We have recently bagged that’s just say for INR22 crores, also. So in the Consultancy business, the bid is evaluated, based on technical score, which has an 80% weightage. And financials score which has 20% breakage.

The technical score is based on factors such as the company credentials, use of equipment, software. And the CVs of the key professionals, are professionals that we are proposing on our site. Our current score is 95 plus and we are among the top five infrastructure consultants in the highway sector in the country. We are optimistic to get good orders from their estimated order outflow for the next two to three years. As said in the last conference call is been that, we are also entering into the international market and we are very confident to win one or two big with high-profit margins. Currently, the company has been shortlisted in eight projects out of the 75 expression of interest that were submitted. These are projects in Cambodia, Bangladesh, Zambia, Nigeria, Kazakhstan etc. So the order inflow has been very good for the past few months, since the beginning of FY ’23. Till-date we have bagged orders close to INR130 crores, which is the highest ever in the history of the company. And the order book as on December ’22 stands at INR500 crores, of which the unexecuted is INR296 crores.

Now I request our GM Accounts and Finance, to take us through the financial performance for the reported quarter, and nine month of FY ’23.

Rajesh Sindhav — General Manager Finance and Accounts

Thank you, Tanvi. And welcome to everyone. And then closing the financials highlights for the nine month, closing in 2023, as well as the Q3 result. The company for the nine month performance, total revenue of the company has gone up by 10% from INR54.77 crores, INR60.16 crores. At the same time, the total expenditure has gone up by 16% from INR47.23 crores to INR54.94 crores. So there is a net increase in the expenditure by INR7.71 crore. At the same time, the profit after tax has gone down by 22% from INR6.9 crores to INR4.72 crores. The major contribution in the increase in the cost on account of the employee cost by 15%, there is an increase in the finance cost by 40% and administration costs by 13%. So this has been impacted the profitability of the company in this nine months result. And main goes up the concern in the — using the profit on account of increase in the professional fees by INR4 crore and increase provision by INR90 lakh.

At the same time there is reduction in the cost of the other item like price expenditure. For the period of three months — two, three for the ’23 as well as compared to the ’22 of the last year, the company has net total revenue of INR22 crore, against the last year is INR20 crore. So there is a net increase by 8% in the revenue in the Q3 result of the last year same period. The total expenditure has gone up by 13% from INR18 crores to INR20 crores. So there is a net increase at INR2.5 crore in that sales. And margin on the profitability of the company has been gone up from INR1 crore to —

Operator

Sir, I request you to please speak a little closer to the mike, because we actually sounding a little muffled. And in-between, it’s going down, sir.

Rajesh Sindhav — General Manager Finance and Accounts

The profit of the Q3 for the FY ’23 against FY ’22 was increased by INR76 lakhs, from INR1 crore to INR1.82 crore. Because the main reason for the increase in the profitability on account of that, there is a excess provision line for the assessment, year 2021. Which has been necessary entry has been passed to the books of accounts. So these are the results for the Q3, as well as the nine months. Any question for that?

Operator

Sir, we may go-ahead with the question-and-answer session, sir?

Tanvi Auti — Managing Director

Yes, yes.

Questions and Answers:

Operator

Thank you. We will now begin with the question-and-answer session.

[Operator Instructions]

The first question is from the line of Mukesh Panjwani, from Value Securities. Please go ahead.

Mukesh Panjwani — Value Securities — Analyst

Yeah, hello. Good afternoon. As we know that a lot of work is going on in road in India, but we cannot see much of growth in Dhruv’s revenue in current financial year. Like last year, it was around INR75 crores. And in the trailing 12 months it is INR80 crores. So while we haven’t grown in a reasonable manner as even though our base is still small.

Rajesh Sindhav — General Manager Finance and Accounts

There are two reasons. First reason is, if you compare — now we are already hereby I think [Indecipherable]

Operator

Sorry to interrupt, sir, there is a little disturbance on your line, and you are not clearly audible at the moment.

Rajesh Sindhav — General Manager Finance and Accounts

Am I audible now?

Operator

Yes, this is very good sir.

Rajesh Sindhav — General Manager Finance and Accounts

Yeah, so there are two reasons. If you see the nine month to nine month comparison, there is a marginal increase in the top-line, I’m accepting it is marginal only. Secondly, the main reason for — you can say, not reflecting the things in our books of accounts. The progress of the projects is that it is a typical government budgetary systems. In which the works are also awarded in the Q4. This Q3, all the results are outcome of Q2, and Q2 is mainly dominated by the monsoon season. So in the monsoon season the price are slow, our revenues are slow, even order — issuing the work orders also on little bit on slow track. That reflects on Q3, then Q3 and Q4, historically, our revenues are 60% to 65% in Q3, Q4. So I’m not worried about that. We will definitely doing better, if you are seeing at the Q4.

Mukesh Panjwani — Value Securities — Analyst

Okay and sir, how should we see our company going ahead, like three to five years from now, in terms of revenues and in terms of margin?

Rajesh Sindhav — General Manager Finance and Accounts

If you see our last year’s unexecuted order book, it was hardly INR150 crore plus. Now, today it is double, almost INR300 crore we are fetching unexecuted order book. I’m underlining in a bold line, unexecuted still one quarter has to go. So this unexecuted book is giving us assurance of next two to three years visibility on the top-line as well as the profits. This is straight away, I am talking about the existing order book. As explained by our MD in the initial talk, we have bided very aggressively in terms of expression of interest. First in the international consultancy market almost 70 plus bids, we have already submitted in form of [Indecipherable]. And we are very much sure in current calendar year, we will enter into international markets in aggressive way. That is going to give us the good visibility for the next three to four years. Once we enter, we will be touching the skies in international market also, because our credentials are very, very strong. And we are the only consultancy firm there, who are public limited and listed on the stock exchange.

Mukesh Panjwani — Value Securities — Analyst

Okay. And sir, what should be the average order size, when we talk about international market? And what about the margins?

Rajesh Sindhav — General Manager Finance and Accounts

See, ticket size there is INR20 crores to INR25 crores in terms of INR, of course we will get in dollar. But ticket size is almost getting double in international market, and of course then profitability is also very high. I am expecting our unexecuted order book at least three times in next three years, if we successfully go ahead with the international bidding.

Mukesh Panjwani — Value Securities — Analyst

Okay, that’s interesting. Okay, that’s all from my side. Thanks a lot and wish you all the best.

Rajesh Sindhav — General Manager Finance and Accounts

Thank you sir.

Operator

Thank you.

[Operator Instructions]

The next question is from the line of Tushar Raghatate, from KamayaKya Wealth Management Private Limited. Please go ahead.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Yeah. Good afternoon, sir. And congratulations for the good set of numbers. Sir my question is on your order books. You mentioned back in a con call that you submitted a bid drop INR700 crores of orders. Firstly sir, what is the update on the same. And secondly, you also mentioned that you’re bidding on the international order. And so in that, where is a process as of now? So when can we expect the conversion of all the bid picture?

Rajesh Sindhav — General Manager Finance and Accounts

Can you repeat the first question? I missed out.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Okay. So you all submitted it, in the last con call you mentioned you submitted a bid for INR700 worth of order. I just wanted to know the update on the same, this INR700 crore order, and also in the global orders.

Rajesh Sindhav — General Manager Finance and Accounts

Yeah. That I will explain now. The first for INR700 crore bids are submitted. The process of scrutiny is now expedited, of course, considering the ’24, ’25 the election year. The results are coming much faster than earlier, normally results of the bidding comes after six months. But now the time has come down to four months, it may come down to three months in the next financial year. So we are expecting at least 20% of the success. So additional INR150 crore plus order book should be filled in the next four to five months, part one Indian market. And as global market the process is guided by the World Bank, you can say directives and procedures, which is the internationally accepted. And there they first go for expression of interest, it is sort of shortlisting. And once we qualify in that — that is the technical qualification, then they issue the RFP that is a request for proposal document. And then we have to submit our financial bid.

Unfortunately the corona was there all over the world not too hard hit in India. But at some part of the world, the corona was there and the procedure was little bit slow on evaluation side, last calendar year. But current calendar year, we can expect the results in eight months. When we submit the from — the date of submission till getting the result. Which was previously almost I can say 18 months to 20 months. So that time has also reduced, because the corona is now almost zeroing down all over the world.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Fair enough, sir. Sir, what sort of revenue and margins you are targeting in the next two to three?

Rajesh Sindhav — General Manager Finance and Accounts

See, top-line, as I explained in earlier question, if unexecuted order book today is INR300 crore which to be completed in two, two-and-half years only. So definitely we will be doing much, much better in terms of top-line in next two, three years. Order book, I already explained that EBITDA bound to increase for the reason that all the initial mobilized expenses are already there in Q3. And revenue is yet to come, because the billing cycle is 60 days, or sometimes 75 days. So Q4, the government normally try to end the budget on 31st of March. All the expenses should be in place. So Q4 should be a good in terms of revenue where the expenditure is already booked in Q3, that is one thing.

Secondly, if you observe the budget at micro-level. There was provision of about INR2 lakh crore, in last financial — I mean current financial year, that is ’22-’23 for the highway sector. Which is exhausted or expended in initial nine months only. And they have made additional 20%. for the current financial year. So from INR200 crore, it is already INR240 crore, it is INR40 crores — INR40 lakh crore, more for the current year. So that is indicating how the sector is growing speedily ahead of the budget provisions.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Sir, and my next question, you mentioned that the NHAI contribution to the order book is increasing. But is my understanding correct that the working capital requirements will gradually reduce going forward next two to three years?

Rajesh Sindhav — General Manager Finance and Accounts

Yeah, our working capital requirements definitely will go on higher side. We have already tried for the preferential issue and we are hoping to get it closed. Partly it is successful, partly it is yet to be — Working capital requirements are there, definitely because on the debt side, we have the limitations because of the banking norms and all other things. Still we are in the process of getting additional INR5 crore, INR6 crore sanction from the Punjab National Bank, in current financial only. So working capital requirement is definitely going to get higher side considering the international assignments.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Sir, in terms of competition, like the top players. Sir, where do we stand in terms of technical capabities and all such aspects?

Rajesh Sindhav — General Manager Finance and Accounts

If you see our historical records that are available on website, also on various social media posting. We were scoring 80, 90 marks, before I can say covid. During COVID we jumped from 80, 90 to 90, 92. And post COVID considering the four laning completion, a similar type of experience and better we got from the infra market. Today we are scoring 95 plus mark out of 100. Which is I can say quite admirable. The competitors — we are in the elite group of competitors. So 95 plus, hardly three or four competitors are scoring nowadays. And we are in that group. So getting the — chances of getting the works are higher now, and also chances of getting that works with better margin is also now on cards.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

So, you mean to say that only two, three players of the technical…

Rajesh Sindhav — General Manager Finance and Accounts

There are three, four players who are — marks are equal to us. We are trying to touch to 96 or 97, say in current calendar year. But I can’t name it also [Indecipherable], they are well established players and they’re also doing equally good as we are. There be infra company they are in construction only. Ours is purely a consultancy, purely, purely a consultancy, it is a service sector. In the religious language, I can say, we always play roll of Shri Krishna in Mahabharat. We cannot be Arjun.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Fair enough, sir. Sir, what was the difference in terms of orders, the company’s you named? Three, four companies in terms of size and orders, what was the difference between ours and them?

Rajesh Sindhav — General Manager Finance and Accounts

Some are below and some are above us, maybe 10%, 20% plus or minus. One or two marks here and there, that depends on how you submit your bids. So I can say we are at par. The only big difference between other companies and we, is that we are the only company listed on Public Limited and listed on BSE, NSE both.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Okay. Sir, in terms of employees, what is the average experience of employees.

Rajesh Sindhav — General Manager Finance and Accounts

The employees are of two types. One, it is a core — you can say one is a permanent employee. They are associated with us since long, say, 15 years, 20 years or more than 10 years. So they are working mainly in the head offices. They are working in the designs, they are working at the coordinator, they are in working as a CFO or not-technical section, business development.

Second chunk of the employee are on site. I can say 70% of the employee are on site. Their appointment is purely, purely, purely on contract basis. Once the project is over, their assignment is automatically over, automatically. It is as per the RFP only, that is as per the contract document only. So no liability, no legal or financial liability once the project is completed.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

So sir, my last question, now you are diversifying into other businesses as well. So when can we expect the material contribution of those diversification to our revenue?

Rajesh Sindhav — General Manager Finance and Accounts

See, solar, we have kept on the back burner, because of the industry slowdown in that sector. And Solid Waste Management, we are definitely trying very hard. But I can say, considering our core sectors opportunity, and now the opportunity is opened in the international market. We are not very keen on diversification as on now, very harsh push. Solid Waste Management as and when it comes to the opportunity, we are bidding it and we are sure that presently we have only one or two in our order book. We are sure that we will get additional four, five works. And we are first trying to build our own credentials in that sector.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Okay. Sir, just one concern, like consultancy is the high margin business. So I just wanted to understand whether this diversification will have some drag on the existing business of yours?

Rajesh Sindhav — General Manager Finance and Accounts

No, that’s why I am saying, suppose now Solid Waste Management, out of our unexecuted order book of say INR300 crore is hardly INR2 crore, so it has not much impact on that. And once we get sizable work, we will try to prepare a separate balance sheet, or maybe we will take it in the [Indecipherable] if the projects allows to format to.

Tushar Raghatate — KamayaKya Wealth Management Private Limited — Analyst

Fair enough, sir. That’s it from my end. Thank you.

Operator

Thank you.

[Operator Instructions]

We have the next question from the line of Nitya Shah, from KAMAYAKYA Wealth Management. Please go ahead.

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Yeah. Hi, sir. So I just wanted to understand, I was noticing in the investor presentation that, at the peak your employee count was at around, you could say 480, nearing 500. And now the total number of employees is 350. I want to understand that, considering the number of orders that are increasing and you know the work is going to significantly increase, what is your target employee headcount over the next two years? Like, I am expecting the number of engineers and experts hired will be much further, and will this cause a big drag in margins due to rise in employee expenditure? As it was visible in this quarter also.

Rajesh Sindhav — General Manager Finance and Accounts

Good question, basically the reduction in employee number is because, as I explained earlier. Because completion of the projects, the project — our assignment in the project is in two parts. One is, that is construction starts and construction ends. So that is about three years maximum. Two, two and a half, sometimes three years. Then another three to four years is a defect liability period. Wherein we have to observe the defects on the project, which is completed by the contract process and which is supervised by us. And it is to be brought to the notice of concessionary or contractor as well as to the client. And our duty is to get it repaired or rectified.

Now, for that second part, we hardly need 10% of the employee, say 20 people were there, then only we need two people. So, drastically reduction in number, because of — majority was assigned in 19-20, and 20-21 completed. And drastically reduction in number. Now coming forward to the new orders and order book and international market. The ticket size has been increased in the new order book. If you see in micro-level ticket size was INR5 crore, INR6 crore, now, it is INR7 crore, INR8 crore. One assignment we got of INR21 crore. International market of course is INR20 crore plus. But touchwood the manpower requirement is same for the ticket size, additional ticket size works in India. 20 means 20, only what we have to add is added qualification in that employee, that we are getting on the market. Say if they are comfortable with say graduation. Now, they will ask for post-graduation. If they are comfortable with post-graduation, they will ask for postgraduate with 20 years experience. So, only they will increase in quality of the manpower, not number of the manpower. And then manpower cost doesn’t increase the proportionate to the ticket size or word order.

International market is very interesting. The manpower requirement is almost, I can say half. Because majority of the works are to be done, are from the head office or it is intellectual work.

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Right, sir. So, I can expect a sort of operating leverage also kicking in, due to you know less number of employees required to do large number of contracts, right? Is my understanding correct?

Rajesh Sindhav — General Manager Finance and Accounts

Correct.

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Thank you. And my second question was regarding the competitive scenario. I just wanted an understanding, let’s say companies like RITES, which is a PSU. And there are other big fours like, Deloitte, PwC are they also involved in infrastructure consulting as we are?

Rajesh Sindhav — General Manager Finance and Accounts

I have to explain it, Deloitte, and EY, and PwC they are dominantly the financial consultant, having very short or very weak arm of technical. Normally they outsource the technical things for the consultants, small sites consultants. But their main assignments are advising the government on policy matters, or financial flows for the government. Government companies like MSRDC or HRDC, that IL&FS was previously working, they are the consultancy. So, the PwC — and PwC they are basically the auditing firms.

Now, the RITES. RITES in India undertaking, and railway works are by default awarded to them only without tender. So, of course their order books are very strong and their profit margins may be very high, and their turnover may be very high. All other things are very high because entire Indian railways, including their on subsidies and other things, like metros or bullet trains or everything. The RITES get the first right. They tender it. So, we also are trying to enter into this Metro and railways now, we are the competition is available for 20%, 30% area.

Since the budget provision current year is highest for the railways, we are desperately trying to enter into relevance with our qualifications.

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Okay, sir. And my last question sir, was on the guidance now, say considering you know, the infrastructure boom is going on in India and railways and road construction. Can we expect the current INR500 crore order book, to reach to say INR1000 crore order book by FY ’25?

Rajesh Sindhav — General Manager Finance and Accounts

Definitely.

Nitya Shah — KAMAYAKYA Wealth Management Private Limited — Analyst

Okay. Thank you, sir. That’s it for my end. And I wish you all the best.

Rajesh Sindhav — General Manager Finance and Accounts

Thank you.

Operator

Thank you. The next question is from the line of Devesh Shrimali, from DS Investment. Please go ahead.

Devesh Shrimali — DS Investment — Analyst

Yeah, hi. Good afternoon. I’m sorry, I joined late. So missed things in commentary. My first question is around the sustainable margins, whether quarterly or annualised basis, can you give some color on that please?

Rajesh Sindhav — General Manager Finance and Accounts

Tanvi, can you answer?

Tanvi Auti — Managing Director

Can you repeat the question? There was some disturbance at my end.

Devesh Shrimali — DS Investment — Analyst

Sure, so, you know, I join late so, I might missed the initial commentary. I was just looking to understand what is our sustainable margin? Whether annual or quarterly basis and is there any seasonality in it? How do we read the numbers?

Tanvi Auti — Managing Director

Yeah, so, since you joined late, I think we already covered these points. During monsoon period, that is the quarter one and quarter two, the progress of the work is usually slow and the flow of orders is also less. So, in Q3, the orders come in our hands, and from Q4 the revenue starts — the revenue recognition actually starts. For the newly awarded projects and initially there are mobilisation expenses also. So, overall, if you say for the total projects, the margins are between 10% to 15%. And these are for the projects that we have already bided, or that we have already received. And for Q1 and Q2 it may differ, and Q3 and Q4 they’re slightly on the higher side.

Devesh Shrimali — DS Investment — Analyst

Got it, got it. And annual level what is the guidance that you sort of see going forward ’24, ’25?

Tanvi Auti — Managing Director

Yeah, so we are expecting the same increase, a stable increase that you have seen in the last one or two years. Since the infrastructure development, so to speak, but we are expecting an inflated order book this financial year, because this is going to be the last year before the election at the central government level. So, the order book that is there, right now, the order book is about INR500 crores. We are expecting it to swell this financial year, even in quarter one and quarter two, we can expect some results there. So, this year is going to be very good for the entire infrastructure industry.

Devesh Shrimali — DS Investment — Analyst

Lovely, lovely. I think that was looking more from margin, because ’16 to ’19 we did about 26%, 27% margin. After that we have been sort of quite up and down. So ’24-’25 can we get back to the 26%, 27% margin rate?

Tanvi Auti — Managing Director

Yes, that is the reason why we are now shifting our base to international project as well, where the margins are 30% and above. Once we start getting international orders of course, it will not be 16% to 19%, it might be much above also. So, we need to keep a balance off the domestic and international orders. International orders as like mentioned, they are more of intellectual, less manpower required. Even though we consider the exchange rate, and of course, income will be in dollar. So if the dollar rate goes on increasing, our income also goes on increasing. So that advantage we will definitely get. And as margins are concerned, as I’ve said, they are close to 30% for international orders.

Devesh Shrimali — DS Investment — Analyst

Got it, thank you for that. And the last one was more around the, talent recruitment side. And the current situation when there is infra boom, I’m sure we are chasing the same skill-set that many other companies are. Do you see any challenges on that part? Or you think we are well covered there?

Tanvi Auti — Managing Director

We do have a very strong recruitment team in-house itself. Whereas most people are dependent outside. And the major advantage, one is that, since many retired government officials, they retire at the age of the 58. They see this company as a second home, because even those people has worked with government previously. So they have a certain amount of comfort coming back to us, and their CVs are strong that they become highly competitive in the market. So as on date, we have not faced this problem, even with the highest competition. And even in the private sector, so the work culture and the comfort of working that we give here, is our USP amongst our competitors. So, even those who have come from other competitive firms and joining us, being a part of a listed company. Because we have advantages like giving new thoughts. So they have a certain inclination towards Dhruv Consultancy. So as on date, we have not faced this problem.

Devesh Shrimali — DS Investment — Analyst

Perfect, thank you for that. And one additional would be, you said, we are looking at INR500 crore order book soon. Now to sort of reach there, do we need some working capital enhancements? Or how are we placed around that money raise part?

Tanvi Auti — Managing Director

Yes, right now, our total debt is INR16 crores. But yes, if there is a swell in the order book, we will definitely require additional working capital. But the requirement, since the initial mobilization expenses, and first will take about three to four months to get realizing the accounts. That short gap needs to be fulfilled. So not much of a major issue, but yet the working capital requirement will always be there.

Devesh Shrimali — DS Investment — Analyst

Lovely. Thank you. Thanks a lot and all the best.

Tanvi Auti — Managing Director

Yeah, thank you.

Operator

Thank you.

[Operator Instructions]

The next question is from the line of Himani, from Suraj Research. Please go ahead.

Himani Shah — Suraj Research — Analyst

Hello. Hi, good afternoon, sir. Am I audible.

Operator

Yes, you are audible ma’am. Go ahead.

Himani Shah — Suraj Research — Analyst

Sir, my question is, government is focusing on infrastructure capex on the next three, five years. Can you share our size of opportunity?

Rajesh Sindhav — General Manager Finance and Accounts

Yeah, surely. There is one document called NIP, National Infrastructure Pipeline published by Ministry of Finance project of India. They have shortlisted, analyse and with the provisions, just like Planning Commission was doing previously. [Indecipherable] starting from, I think 2018, 2019. The document is available on the website also. It has made a provision of INR100 lakh crore for infrastructure development in India in five years. Starting from ’18-’19. So out of that INR20 lakh crore, that is 20% of the provision is only to the highway sector. Now, when it started gearing up. Unfortunately COVID came. Expenditure or you can say, tenders awarded till date are only INR10 lakh crore. And INR10 lakh crore tenders to be awarded in next two years.

Operator

Sorry. The line for you is not very good. It’s difficult to say or would you saying, there is a little disturbance.

Rajesh Sindhav — General Manager Finance and Accounts

Shall I repeat everything?

Operator

No sir, the last…

Himani Shah — Suraj Research — Analyst

Yeah, the last…

Rajesh Sindhav — General Manager Finance and Accounts

So, yeah. So INR10 lakh crore order are issued. And INR10 lakh crore orders are to be issued in highway sector only. So the slowdown that INR10 lakh crore, remaining to be issued in next two years, next two financial years. So this program is mainly due to the quoted, it should have been at the INR14 lakh, INR15 lakh crores, I don’t know, it is minus INR4 lakh crore, INR5 lakh crore, because of the COVID impact in 2021 and partly 2022. So opportunities are huge for every infra. Bentley consultants as the front runner for first, you can say, advantage picking sector. So we are expecting everything to be doubled in next two years.

Himani Shah — Suraj Research — Analyst

Okay. Okay, sir. And then next question is, can you please share your order book breakup, NHAI, State Highway?

Rajesh Sindhav — General Manager Finance and Accounts

Yes, we have the — major clients are two only. One is, NHAI, that is National Highway Authority of India. And another is MoRTH, The Ministry of Road Transport and Highways, both are government of India department companies. So today, broadly 60% of our orders are from NHAI which better client for in terms of payment systems, and also in terms of technic side. Because they are doing eight lane, six lane works, expressways. Once order book is roughly 30%, which is more commonly doing the two lane or three lane roads. So the ticket size a little bit smaller. And only 10% of our order book is from other parts of the sector. Like, one is Ganga Expressway we got from UP government. Then, few of the orders in Maharashtra. So other state highway or other clients are only 10%.

Himani Shah — Suraj Research — Analyst

Okay. Okay, sir, in which states will be more opportunities in highway?

Rajesh Sindhav — General Manager Finance and Accounts

See, today, four years back our presence was only Maharashtra, little bit in Gujarat. Now, we have the presence in 28 states of India, out of 30. We don’t have the presence only in two states, that is, I think Nagaland and Tripura. Because we are spread all over the India. So opportunities are not state-wise, because it is a centralized, Government of India task force, and Government of India division, they have done. I can say, it has nothing to do with states. It is spread over — all over India in fact more on the northeast part of it.

Himani Shah — Suraj Research — Analyst

Okay. Okay, sir. And my last question is, please share your order book and execution timeline.

Rajesh Sindhav — General Manager Finance and Accounts

Order book as explained, it is roughly INR300 crore, executed to be completed in this financial year.

Himani Shah — Suraj Research — Analyst

Okay. Thank you so much and all the very best, sir.

Rajesh Sindhav — General Manager Finance and Accounts

Thank you.

Operator

Thank you.

[Operator Instructions]

The next question is from the line of Yashvanti Ketkar, an Individual Investor. Please go ahead.

Yashvanti Ketkar — Individual Investor — Analyst

[Indecipherable]

Operator

Sorry to interrupt. Ma’am, you are not audible. If you could please speak closer to the mic.

Yashvanti Ketkar — Individual Investor — Analyst

So you were talking about entering to the international market where the margins are comparatively high. If we see the current quarter and the nine months, our margins there, in the reported quarter, the margins have come down. But on overall basis for the nine months it around [Indecipherable]. So with this international contribution coming into account, not for the current year, not for FY ’24. But for FY ’25 onwards where do you see our margin?

Rajesh Sindhav — General Manager Finance and Accounts

Tanvi?

Tanvi Auti — Managing Director

Yeah, so the assignment that are ordered internationally, at for a period of six to seven years. So maybe, not in two years, but in three financial year you would be able to see the effect. With respect to international market there that — as that sir also rightly explained that turnaround time is slightly slow. Say, it takes about eight to nine months, for a order to get converted into — for a bid to get converted into an order. So, eight, nine months goes, after that, the construction period, it goes up to three — and then the maintenance. So it will take three financial years for the margins to actually improve this.

But in addition, we are not only dependent on the international market for our margin. Recently we have posted on our — on the exchange website also that we have been awarded with three states, we have been awarded with projection three states for traffic survey. Under IHMCL, Indian Highways Management Company Limited. For these three states, we are going to carry out 24/7 traffic survey.

So here also we had such a project like Mobile Bridge Inspection Unit which we — through the Mobile Bridge Inspection Unit, we were inspecting all the roads where margins were 40%and 50%. So such kind of expertise work are also coming along with the current work we are doing where margins are 40% to 50%. Projects like traffic survey like [Indecipherable]. Now they are also exploring that this Mobile Bridge Inspection Unit be using the railway. And we have already seen, the amount of budget allocation done for the railway sector. So this is the right time we target the railway sector and will be a new entrant there, because there are hardly any consultancy firms working in the railways sectors. So and — we have an advantage, also a good experience in highway sector. So such projects along with the international project, we can definitely see an improvement in the margin in one or two financial year also.

Yashvanti Ketkar — Individual Investor — Analyst

Okay, what is the quantum of the staffing, monitoring consultancy services going forward in our order book?

Tanvi Auti — Managing Director

Yeah, so these assignments are for one year only. But they are extendable from time-to-time, because our need of traffic survey is going to arrive, if infrastructure development or Road development is required. So traffic surveys, it’s never going to end. But the total tune of these three states, that we have received is close to INR10 crores.

Yashvanti Ketkar — Individual Investor — Analyst

Okay, yeah, thanks you. Thank you so much.

Tanvi Auti — Managing Director

Thank you so much.

Operator

Thank you.

[Operator Instructions]

The next question is from the line of Yashvanti Ketkar, an Individual Investor. Please go ahead.

Yashvanti Ketkar — Individual Investor — Analyst

My questions are over. Thankyou so much.

Operator

Thank you

[Operator Instructions]

As there are no further questions, I would now like to hand the conference over to Mr. Vastupal Shah for the closing comments. Over to you sir.

Vastupal Shah —

Thank you. Thank you for joining the conference call of Dhruv Consultancy Services Limited. If you have any queries, you can reach out to us at research@kirinadvisors.com. And once more, many thanks to management team and all the participants for joining the conference call.

Thank you.

Rajesh Sindhav — General Manager Finance and Accounts

Thank you, very much.

Operator

[Operator Closing Remarks]