Dilip Buildcon Limited (NSE: DBL) Q3 2025 Earnings Call dated Feb. 15, 2025
Corporate Participants:
Rohan Suryavanshi — Head of Strategy & Planning
Sanjay Bansal — Chief Financial Officer
Analysts:
Jill Chandrani — Analyst
Shravan Shah — Analyst
Unidentified Participant
Pranav Furia — Analyst
Sanjay Parekh — Analyst
Bhavin Soni — Analyst
Vignesh Iyer — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning, and welcome to the Q3 and Nine Months FY ’25 Earnings Conference Call of Dilip Buildcon Limited hosted by S-Ancial Technologies Private 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms Jill Chandrani from S Essentials Technologies. Thank you, and over to you, ma’am.
Jill Chandrani — Analyst
Thank you, Alex. Good morning, everyone. Welcome to Bilip Q3 and nine months FY ’25 Earnings conference Call.
From the management, we have with us today, Mr Jain, Managing Director and CEO; Mr Rohan, Head Strategy and Planning and Mr Sanjay Kumar Bansal, Chief Financial Officer.
Before we proceed with the call, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange, including the interactions in this call may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to certain uncertainties. The actual results could differ from those. Now I request the management to take us through the key remarks after which we can open the floor for question-and-answer session.
Now I hand over the call to Mr Rohan for his opening remarks. Thank you, and over to you, sir.
Rohan Suryavanshi — Head of Strategy & Planning
Thank you,. The results and presentation have been uploaded on the stock exchange, and I hope all of you had a chance to look at it. On behalf of the whole DBL family, I’d like to welcome all our partners for the quarter third and Nine-Month FY ’25 earnings conference call. To begin with, let me share some updates on the budget and sector. The current government has consistently focused on infrastructure development of the country and has played a pivotal role in positioning the country as one of the world’s leading economies in the near-future.
This commitment has also created opportunities for millions of people across the nation. In this budget, the capital expenditure allocation stands at INR170,266 crore for NHAI and INR16,292 crores for MORTH. Other major allocations include INR1.5 lakh crore in interest-free 50-year loans to states for infrastructure projects for capital expenditure and reforms. Indian Railways has been allocated INR45,530 crores. Ministry of Coal has been allocated to INR750 crores. And additionally, an urban challenge fund of INR1 lakh crore will be established to transform cities into growth hubs while improving sanitation and water infrastructure. To initiate this, the government has allocated INR10,000 crores for FY ’25-’26. A significant emphasis has been placed on developing new greenfield airports across the country.
All these different initiatives will not just help the sector to grow but would also help in developing the country’s infrastructure and boost the economy. In FY ’25, the government plans to construct 10,400 kilometers of national highways with National Highway Authority of India targeting 5,000 kilometers. The government aims to award 12,900 kilometers of highway projects in FY ’25, which is a 50% increase over FY ’24, bolstered by the national infrastructure pipeline and the enhanced union budget capital expenditure. The current government has plans to introduce a new mega-highway construction program that aligns with the 2047 vision of our PM Narendra Mo DJ. The proposed program will establish clear criteria for identifying roads of national importance and also bring changes to the model concession agreement to expedite infrastructure development and minimize contract disputes and litigation.
All these activities reflect the government’s focus on the sector and on developing the country’s infrastructure. During the quarter under review, ordering activity has remained weak across all sectors, which has been the same case for this whole year. But going-forward, we are expecting clearing a lot of the order backlog across infrastructure verticals as these orders have been floated. To discuss about our financial performance of the last quarter, our CFO will delve deeper in the following remarks, but I would like to provide some contextual perspective. Just like for the industry, for DBL as well, order inflows have remained muted in the past 12 to 15 months. Resulted to a decline of 16% in top-line on a Y-o-Y basis and 12% on a nine-month basis as compared to the previous year.
And although we are expecting strong order inflows in the next few months, the execution will take time to accelerate to convert in numbers. Hence, we are expecting similar or better revenue run-rate for the next year as well. As any EPC company, we have also been impacted due to low economies of scale, resulting in margin contractions as and when our scale of operations will improve, our margin profile will also improve accordingly. Now shifting gears and talking a little bit about our investment portfolio of HAM assets. As informed and discussed in the last quarter, we have fully concluded the INVIT deal. As per the deal, we have received the entire consideration in terms of cash and we continue to receive cash distributions of INR60 to INR80 crores per annum from the InvIT for our stake. In addition, we will also continue to do the O&M of their assets for the live duration of those assets.
As I have mentioned earlier as well, this provides us with long-term assured revenue stream. And this O&M revenue stream will keep on increasing as our own InvIT asset pool is also getting larger in size. On our own INVIT in partnership with Alpha, we are progressing as per the plan. Till now we have transferred 26% stake in seven assets out of a total deal of 18 assets. In these seven assets, we have received COD and annuity has started. In the 8th asset construction is completed and we have divested 25% stake and will receive PCOD very soon. This will conclude the first tranche of the Alpha deal. Balance 10 assets are under-construction as per the schedule and will be divested post receiving COD. Our formation process is also progressing well. We have received JB approval for forming the public listed InvIT and we are hopeful of concluding that in the first-quarter of this coming year.
Now coming to our coal business, our coal MDU business is on an accelerated execution path. I’m very happy to report that we’ve achieved production of 17.45 million metric tons in the nine months of the year as compared to our target of 22 million metric tons for the full-year. Be in mind, even the 22 million was a higher target that we had kept. But as announced in the last con-call, we are on-track to even beat that target by at least 10% to 15%, meaning we’ll end-up doing this year with almost about 25 million metric tons of coal production. Finally, coming on our vision of Debuild 2.0, I’m happy to report that both our long-term revenue-based businesses, that is coal MDU and HAM portfolios are progressing at a fast pace, which is going to provide us with predictable cash flows and improved return ratios with limited risks and downside.
As I’ve indicated earlier as well, going-forward, when you look at DBL, you will have to look at the consolidated numbers to get a better perspective. The temporary challenges around the standalone business, which has been a — which has been an industry-wide challenge because of low order book by the government in the last two years, we expect that to also improve going-forward with the government focusing very significantly on infrastructure and continuing to press that pedal even further. So you will see improvement happening that side as well and all the other numbers that we had talked about.
Now with this update, I would like to hand over the call to our CFO for the financial overview. Thank you.
Sanjay Bansal — Chief Financial Officer
Thank you,. Good morning, everyone. I welcome all our stakeholders to our earnings call. Let me present the standalone and consol results of Delhi Limited for the quarter ended and nine months ended, 31 December 2024. Firstly, the standalone performance Y-o-Y for quarter three FY ’25 versus quarter three FY ’24, the revenue decreased by 16% in-quarter three FY ’25 to INR2,155 crores from INR2,571 crore in-quarter three FY ’24. EBITDA decreased by around 34% in-quarter three FY ’25 to INR210 crores from INR318 crore in-quarter three FY ’24. This is mainly due to a lower revenue in-quarter three FY ’25. Profit-after-tax also decreased by 7.37% in-quarter three FY ’25 to INR88 crore from INR95 crore in-quarter three FY ’24. On consol nine months basis, nine months FY ’25 versus Nine-Month FY ’24.
The revenue of the company decreased by 5% in nine months FY ’25 to INR8,221 crore from INR8,646 crore in Nine-Month FY ’24. The EBITDA increased by 37% in Nine-Month FY ’25 to INR1,490 crore from INR1,091 crore in nine months FY ’24. Profit-after-tax increased by almost 185% in nine months FY ’25 to INR563 crore from INR198 crore in nine months FY ’24. The increase in EBITDA and increase in profit-after-tax is mainly due to better procurements of our MDO business and completed HEM assets and exceptional gains from the divestment.
Thank you all. And now we can open the floor for the questions-and-answers. Thank you.
Questions and Answers:
Operator
Thank you so much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shravan Shah from Dolat Capital. Please go-ahead.
Shravan Shah
Hi, sir. Thank you for the opportunity. Sir, first just wanted to understand in terms of the awarding part and then for us also. So our two, three aspects to understand the one is how many value of projects that we have already bidded and yet to be opened? Second, how much are we planning to bid by March ’25? And ultimately, so if I look at we have received two projects, INR2,100-odd crore till-date and we were looking at INR15,000 crores INR16,000 odd crore in FY ’25. So now how much are we looking at? And if it is on the lower side, so for FY ’26, how one can look at in terms of the order inflow for us.
Rohan Suryavanshi
So till now we have the orders that we’ve already sort of bid for is about INR20,000 crores already Joker that we are waiting to open up. In terms of the order pipeline, INR1,30,000 crore pipeline B fully that we are kind of looking at so that’s one part of it. Sorry only.
Sanjay Bansal
And jee, as you said total order book INR16,000 crore, though the last 12 to 15 months, the order inflow is lesser, but based on the already order bid and new opening, we think the target is getting INR15,000 crore order from now till next financial year-end.
Shravan Shah
Okay. From now to — by end of March ’26, we will be getting additional 15,000 to 16,000 net addition.
Sanjay Bansal
Right, sir.
Shravan Shah
Okay. So next 13 to 14 months, we will be getting that. But sir, don’t we think that this is a much lower. So even if we, let’s say, this year-earlier when we were looking at INR15,000 crores to INR16,000 crores so obviously, the kind of a similar number should be there for FY ’26 also. So net-net kind of a INR30 odd crore INR30,000 crores versus now we are saying just INR15,000 crore INR16,000 crore by March ’26.
Rohan Suryavanshi
We are saying that on a very conservative guidance because the orders have not floated till now by the government. The idea is obviously to be getting a lot more orders than this, but their minimum our still target will be to do this much. And this is a conservative estimate only as you have seen and you track the sector so deeply. You’re aware that the ordering has been very, very muted. So we are conscious of some of the external challenges in — in the sector. So based on that, we’re saying. But our endeavor is definitely to do this much higher than that.
Shravan Shah
Okay, because sir, then the other question is obviously on the revenue front. So already which is 12% on a standalone basis is lower in nine months. So now if we are looking only INR15,000 crore INR16,000 crore, so net-net, even if, let’s say, to 16,600 already we have plus we have a 16,000 additions, so kind of a INR32,000 odd crore. And out of that for 4th-quarter and in next year, how much then we can look at to do the execution?
Rohan Suryavanshi
Sir, so actually just to sort of reiterate, create a number,. See, right now we’re sitting in February and the government orders have not opened up. So I don’t know-how much will open up in this year. So that has obviously had an impact. Now next year, when I say when we’ve said this Kipanda Solar, they can give you Nipanda Sola, okay,. But there will be more addition to that. That will definitely kind of happen to that order inflow. Now revenue your guidance on, right? Revenue guidance next year Kabi was saying, it will be at least Issal when we started the year that it will be better or like somewhere in that number because we were expecting a large order book.
As the year kept on progressing and we saw the government orders being muted, we kept on revising that even this year the revenue guideline because we realized Joe Katam, the orders that were getting finished were not getting sort of supported by new orders that we would be winning. So we revised that. So now the revision this year we should be doing our revenue of about INR9,000 crores. Now with INR9,000 crores, how do I see next year going? Next year, we are expecting similar kind of revenue because order that we are at least very confident in keeping up order, Yaga and your current order book with the guidance after two half. And as the year progresses, we will modify the guidance as we see the government activity on a shorter footing.
So right now, this is — all these are estimates and looking into the future. If — in the last year or a year-ago, if you’d ask me, will this lack of ordering that happened in the year of the election, will that continue in the year-after as well? I would have definitely not assumed by any stretch of imagination. But here we are standing and still the orders have not happened. And what seems to be delay is I’m not the right person to be able to answer that. Only the government can tell you that. But when it comes to our revenue, I can tell you, okay, there is at least a INR9,000 crore perka visibility that we have of our own revenue given the orders that we have. Now going-forward, as the orders will come in more, we’ll do that. What this lack of ordering has done has also impacted our debt reduction program.
Now by the end of this year, we were expecting we would have reduced from last year’s number, we would have reduced INR05 crores more. But now watch it seems like that we will — a combination of, you less order inflow, a combination of lower revenue and a combination of receivables getting stuck. So these three things from JJM have resulted not enough debt not reducing that in the manner that we did. So we are — right now, we feel that our — our debt will reduce — we’ll come back to the same number as last financial year. This will be because we are expecting now JJM money from central government is being released. So that money that will get released. We’re expecting some arbitration payments also to come in, so that will also happen. So all those different factors will bring it back to that.
And the idea of debt reduction that we had started with, that gets delayed by like instead of what we are thinking that we will finish it in this year and the next financial year instead of that now, the next financial year and after that, we will be completely doing that. And this, like I said, our best played plans have unfortunately not fully gone in with the way that we expected because our external environment was not supporting us in the way that we had planned other things.
Shravan Shah
Just to get more clarity. So currently, we are in terms of the net-debt having got INR1,277 crores at standalone. So by March, we will be having the similar number of the December number or are we saying it will be similar to the March ’24 number.
Sanjay Bansal
March ’24 number was INR1,515 crores.. Now as on today, the 31st December 2024, the net-debt number is 2177 we are saying the March ’25, we will close at the number where we were there in FY ’24. So INR1,500 crore around we will be having the net-debt.
Shravan Shah
Okay. Okay. And then the net-debt or free that we were looking at that by FY ’27 that remains intact.
Sanjay Bansal
Yes, yes. By FY — in FY ’25, ’26, we are expecting further INR500 crore reduction. So basically, the debt reduction plan basically pushed by nine months-to 12 months. So what we used to do last year, we will do next financial year. So by 31st March 2026, the debt will be around INR1,000 crore in one lesser than INR1,000 crore.
Shravan Shah
And then in FY ’27, that will also be a kind of — we will be a net cash kind of a company?
Sanjay Bansal
Yes, yes. Yes.
Shravan Shah
Okay. Okay. And just to get a more clarity here, this INR15 so from currently close to INR600 crores INR700 crore kind of a reduction in this quarter itself. So that is led by what sir?
Sanjay Bansal
And that is led by the collection of JJM receivable. And as Rohan said, there are some arbitration payment in pipeline. So with the — these cash-flow, we will basically achieve the targeted net-debt number.
Shravan Shah
Okay. And lastly, sir, two things in terms of the margin front, so currently 10.5%, 4% for standalone EBITDA margin. So versus we were looking at some 11% or 12%. So is there a possibility of further improvement in the 4th-quarter and for even for next year, can we able to do this or 10% to 11%, that’s the way one can look at.
Rohan Suryavanshi
So, from where we started, the EBITDA has come lower because like I mentioned, there is lower utilization of our fixed assets. The revenue that we had thought we will do, that number is not happening. And because a company — our company model has always been more on our own assets. So whenever there is a decline or dip in revenue, there will always be a consequential decline in EBITDA and that is what has led in that. We are prepared to do much larger revenue than what we are end-up right now and we are ending up doing. So as the revenue improves, the EBITDA will automatically improve. And you would have seen that in the past as well and that’s the same trajectory it will follow. Now waiting for how the revenue stream or the EBITDA will look, that is like I said right now, as the order book builds up, we will see that and we’ll give you better sort of guidance on that. As of now, that guidance of I think, 10%, 10.5% that is happening is a safe sort of headwind to kind of go-forward with, given, like I said, the headwinds around you know where our current order book is and how much we will be able to execute.
Shravan Shah
Okay, got it, sir. Sir, I have more questions. We’ll come back-in queue. Thank you and all the best, sir.
Rohan Suryavanshi
And why don’t you ask, which will chat and then okay, okay.
Shravan Shah
No, sir. So sir, for the capex that we have done was on the higher side. So any specific project where we have done INR188 odd crore capex versus we were looking at INR150. So any specific project which has led this increase and how now one can look at in terms of the 4th-quarter and maybe for even if we are doing, let’s say INR9,000 crore kind of a revenue next year. So how one can look at from the capex perspective?
Sanjay Bansal
Okay. So, whenever we speak on capex, we speak net capex because we said INR100 crore, INR120 crore at this start. So there are old sale also. So basically net basis, the guidance for next year is also similar, INR100 crore, INR120 crore. This year also the guidance basically net numbers. So we have basically purchased new equipments for the business.
Shravan Shah
Okay. Okay, got it. And sir, in terms of now the two, three aspects. So one is the that by 1Q, we will be going for a public. So will it get listed by June ’25 itself?
Sanjay Bansal
Yes.
Shravan Shah
Okay, okay, got it. So — and then for same units, this quarter we have sold some units and so is there any plan to tell furthermore for…
Operator
You’re not quite audible. Can you please go to an area where the network is good?
Shravan Shah
Thanks. Is it better now?
Operator
Yes.
Shravan Shah
Yeah. So I was saying that the same-unit in this quarter we have sold some units. So are we planning to sell more units or the balance we will be keeping?
Sanjay Bansal
So, basically, as of now, we have no plan but this is the cash flows management keeps on basically assess. But as of now, there is no plan.
Shravan Shah
Okay, okay, got it. And sir, in terms of the MDO where we are doing a very good so is there a way as a management, we are thinking so two, three aspects of whether to go-ahead for a listing of that entity subsidiary or JV or is there a way where we will be kind of a giving a full financial numbers and which can help us to capture that value?
Rohan Suryavanshi
So to both your questions. So number-one, do we have a plan to list this in future separately? All those decisions will be made at the Board level whether we feel what is in the best interest of our shareholders. And if a situation arises where we feel there is a significant value unlocking that will happen with putting it into a separate company, that’s a different thing. I am at this position, there is no such plan and I’m not definitely not in a position to be able to answer that. But at this position, I can tell you that there is no such plan.
What we are doing in the DBL holistically is going well. But like I said, these things are always dynamic. And as the situation demands in future, we will take a call on that at a later point of time. And the second part you asked about consolid is there a plan to also give numbers separately? No, right now, the way that the company has been giving the numbers in terms of consolidated versus, that is the only plan. If there is any change in how we present the numbers to our investors, again, it will be a decision which the management along with the Board will take. And if there is any change, we will let you know accordingly.
Shravan Shah
Okay. And the remaining 10 that we will be divesting to the alpha alternative. When this would be — in terms of the completed — in terms of the execution front, will it by FY ’26 will be entirely completed or…
Sanjay Bansal
7 assets will be completed by 31st March ’26 and three in next financial year-after that.
Shravan Shah
Okay, okay, okay, okay, got it, got it. And sir, do we have any tax-related kind of — so on a — what we report on a standalone P&L level. So this nine months also, the tax number is on the lower side. So normal is around 25%, but we have a 20.7%. So is there any benefit or it is just a mathematically way it is coming. So normally the one can look at only the 25% kind of a tax-rate..
Sanjay Bansal
So Sarantee, it is — you can see the significant part in the quarter is basically from the exceptional gains and it attracts only capital gain tax. So blended basis it is 20%.
Shravan Shah
Okay, okay. But now for this — in the 4th-quarter, we will not be having any transfer because already just a 1% is left in the last eight asset. So whatever will be, it will be in the FY ’26 that we will be transferring the assets, seven assets.
Sanjay Bansal
You rightly said this quarter will not have any six any further exceptional gains.
Shravan Shah
Okay. Thank you, sir. And all the best.
Operator
Thank you. A reminder to all participants, please press star and 1 to ask a question. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go-ahead.
Unidentified Participant
Yes.. Hello. Sir. Yeah. Sir this opportunity. Sir, firstly, if we look at the nature of our finance cost, I think so there will be a lot of elements that are clubbed under it. So if you could just give the breakup of on a consol level, a INR320 crore finance cost split between BG as long-term borrowing and working capital requirement and our cost of fund, blended cost of fund.
Sanjay Bansal
Our blended cost of funds is around 10%, but basically infra company has non-fund base utilization also a letter of credit and bank guarantees. So basically, the total in nine months is around INR60 crore — INR367 crores. And we expected this is to be lesser in this financial year, but because of the utilization of additional working capital due to the delays in receivables, the cost is — the interest cost is not reduced. So it is INR367 crores, including everything.
Unidentified Participant
So I was looking at the consol numbers. Therein for this quarter, it was at INR320 crore number and nine months number are INR940 crores.
Sanjay Bansal
Okay. So in consol, basically there are first there is bill it built on debt cost and then we have some debt in one call subsidiary and balance debt in 11 under-construction HAM asset. So it is addition of these items.
Unidentified Participant
Okay. So what was the closing date for DBL Infra? Last quarter, I think so it was INR650 crore if I’m not wrong. So have the — how has the debt moved there?
Sanjay Bansal
So INR81 crore installment we paid-in November, so it is yeah.
Unidentified Participant
And sir, cash closing balance experts coming for March ’25. Sorry, I could not get — can you — what should we anticipate in terms of the further reduction for the 4th-quarter?
Sanjay Bansal
Another INR80 crore 85 crore.
Unidentified Participant
Okay., you have alluded to DBL 2.0 and I think so the net-debt net cash company program was postponed by one year in your last call so if you could just give us some more understanding in your journey for 2.0 what are the current headwinds that we are facing in terms of I think so the order intake part and the slow — and the tendering process being slower from the government is well-understood now by the market. So what is the thought process sir, currently? Is it the only elections being the only as stressed on the bear — on the premise of which this is this state of affair for infrastructure as a whole for the country has happened or is there any shift in terms of the government focus going — going ahead?
Just to allude to the fact DBL is not the only concern which is having this problem, whether they are ancillary companies in infrastructure or core facing or even a big giant like L&T, everybody is sounding the same tune. And on the other hand, we hear from the government that they need — they are pumping money and creating world-class infrastructure for its citizens. The tax buoyancy on one-hand also reflects to the fact that there is a lot of traction in the economy, whether it is GST collection, whether it is direct tax collection. So where-is — where-is this a dilemma, sir that companies who have put the infrastructure and created the workforce for — for creating the infrastructure at today not being able to be awarded — to get the awards.
Rohan Suryavanshi
Forget the execution award — award pending of, Pure Bharash made our closing order book lower last quarter say is quarter. So sir, election not I expect is Amari Bureaucracy moviemaker because honestly I can tell you what historical data tells and based on which we make our best assessments of how the future should or would look like. Historically, for the last 25 years, it was always the trend that the election year the orders dry up. The government doesn’t focus on giving out new orders and the focus is on completing ribbon cutting in, etc. So there is there — and that’s a trend that has been very fairly established since the era because that’s when infrastructure building really took off in India. Before that, because it was not such a big thing, you could not really find a very significant numbers. But since that time now, we’ve seen that trend repeat over and over again. And that whether that happens at the state-level or the central level, it’s the same kind of trend that keeps on repeating.
So when we stepped into last year and the election year, we realized that there would be those challenges. However, we did not expect — see that those challenges will continue even like post nine months of the new government sort of also forming in. So that has because when we hit March or like even right now, we are almost there at nine months and this has happened. Now why that has happened and what the government is thinking, I’m actually not in a position to say when combination of factors or whether it’s whatever their challenges are or whatever their focus is on, there have been different changes at the top in NHIMO at yet they’ve been while we were lucky to have the same minister continue, there are obviously different teams below have kept on changing and moving.
But whatever is the thought in block I’m actually not best placed to answer that. But I can tell you what our vision was when we started — when we spoke about Debuild 2.0, which was born out of, you know, the — I guess, the despair of COVID when things were looking very bleak across economies, across the country, across the sector, we had people stuck across the country. So when we started analyzing the issues and the challenges that plague the sector we made a list of things that we as a company need to be mindful of. You know situations can change slowly and they can also change suddenly. Cold was a sudden change. Slowly you slowly things that will happen is competition will catch-up, there’ll be no orders and flows. There’s so many different, different things that will kind of happen.
So as we looked at the sector, we saw how — what are the things that we as a company need to kind of focus on, which will give us — and when I say us, I mean the shareholders, the best return and which will also create a company that will be as a shockproof from most of these things. So you can’t always mitigate all the challenges and risks that you will receive as a company. But you try and do the best possible job so that you know there is less volatility. So that’s how it happened. So the things that we looked at was the volatility that was, the standalone level debt levels, we realized that while we had a very capex heavy model. Going-forward, we didn’t want to kind of do that at the standalone level. We wanted to improve on the — on the credit rating of the company. We wanted to improve on the creditability. We wanted to make sure that we are spending less and less money paying interest and putting more money at the parent level and putting movement, creating more-and-more free-cash.
So that was the idea. So that number-one, reducing debt. Number two, focusing on building long-term revenue streams, that was a very, very important bit of it. And for that we realize just a purely EPC business will not do that because our orders will only have a visibility of two to four years of any kind of EPC order. And that will never give you that long-term sort of predictability of cash flows that you want. So that’s where both the coal business and the InvIT business and looking to partner with Alpha sort of came up — came to our mind that we will want to continue this and continue to have cash flows.
The long-term goal is to keep building our long-term cash flows and conventionally come to a place and position where long-term cash flows and profitability is more than 50%, more than 60%, more than 70% keep on increasing that pie. So while we continue to do our EPC business with our current asset-base and with small sort of improvement capex happening every year. Like we mentioned, the capex earlier DBL used to do INR00 cro INR500 crores plus of capex every year. Now we only do INR100 crores and around that number. So our focus is to only do replacement capex for the next few years, keep doing the max that we can use out from our assets, keep building the — keep reducing the debt, keep building the free-cash flow, keep building the consolidated business at the site and keep improving the return ratio. So our ROE, ROCE, those are the things that we are kind of focusing on as a company.
And that you will keep seeing initially, like I said, you will keep seeing that improvement first happening in our consolidated P&L because a lot of like the coal is an FPV, separate SPV profit gets captured, there some captured — gets captured at DBL level. Similarly, when you do the InvIT things and some of the assets that are housed outside, so they will be getting captured. So all of these different, different things will — the money that will keep getting thrown into the company will be getting captured on a consolidated basis. The only thing right now that we have, as a company struggled with like you mentioned, everyone in the sector has struggled with is order inflow. And because order inflows have been weak, the standalone numbers have not been to our expectations. But as and when this wrong gets right in, we are very sure that we will accelerate on our path that we spoke about.
Unidentified Participant
First, since we are already two-third into — one-half into the quarter, I think 45 days into two days 15, so is the same line of thought in terms of hindering and all continued for us. There is still a lack of order inflow for the 45 days. And how is the execution cycle shaping up for this quarter, sir? If you could give some understanding on the standalone part, how will this quarter shape up?
Rohan Suryavanshi
Sir, so when it comes to ordering inflow, it is anyone’s guess how much more the government will sort of release by the end of this financial year. We are hopeful that more-and-more orders open up. But we can’t say for sure when will they finally sort of open those standards. Like I mentioned earlier as well, we have already bid for about INR20,000 plus crores of orders that we’re awaiting opening. So let’s see when those open. There are others that we’re also bidding for. So again, not in a position to tell you that. Though I can definitely tell you the coming quarter, the numbers that we have done in this quarter, those are the kind of similar numbers we will be doing in-quarter four as well that we kind of expecting that run-rate because that is the kind of order book that we have in-hand right now. So that I can tell you that will be in that kind of range.
Unidentified Participant
Okay. And the consol will look slightly better since the execution for the MDO contribution would be higher for this quarter or at similar levels.
Rohan Suryavanshi
It will be at similar level because that pace of MDO has already taken-up.
Unidentified Participant
Secondly, sir, Mister Gohan, should you even see and all are related to the promoters or they are only professionals for the organization.
Sanjay Bansal
So is part of the promoter part of the promoter group.
Unidentified Participant
And Mr Karan he is also prolonging to the promoter is part of the promoter. Is in on the call today.
Rohan Suryavanshi
No, he is not on the call, sir.
Unidentified Participant
Okay, because as per his profile, he is for the planning and the licening with the government part. So I thought his if you would get more color on what the…
Rohan Suryavanshi
Are in different sir, I think that is a different forum to discuss that. Is there anything…
Unidentified Participant
Is there, sir, when we look at our building the organization and other part, what other efficiencies can be built-in that we can also declare our results earlier than at the end
Operator
If you have any further questions, please.
Unidentified Participant
Yes, yes. So the management can allow me to complete. Hello? Thanks. I can complete.
Operator
I have this as your last question and then you can read your last question only, sir.
Unidentified Participant
We as investors would like to understand why since the organization is large, we are putting into these the right steps to build a new organization 2.0, why are the results are always at the fag end means why at 14/13 of the assuming quarters, we get to know about the numbers, why not as the size of the business is good, we have the systems in-place. Why are not the reporting happening within 25 30 days of the quarter? Why at the…
Rohan Suryavanshi
Sir sir, the results are always taken and presented once the Board members and lot of other factors that come in. Also, bear in mind that is not a tech company like when you see all the sector — this sector-wide, the numbers, how they are reported, we will also be reporting in a similar kind of timeline. There may be some day, maybe sometime, we may be earlier, sometimes someone else may be later. But if you look at the general trend, we are at the same level as everyone in the sector. I can’t compare with any other sector. When we’re comparing apples, we have to compare with apples, not with oranges. So it will be in a similar line as we are, even though we have all the SAP and all the systems there.
Unidentified Participant
Thank you, sir.
Operator
Thank you. The next question comes from the line of Shravan Shah from Tolat Capital. Please go-ahead.
Shravan Shah
Sir, just to clarify, sir, you mentioned that the DBL infra date is reduced by INR81 odd crores and is around INR565 crore.
Sanjay Bansal
Yes.
Shravan Shah
Okay. And then further INR80-odd crore kind of a reduction in the 4th-quarter?
Sanjay Bansal
Yes.
Shravan Shah
Okay, okay. Got it. And second, sir, in terms of the current INR16,600 crore order book, how much of the value where we have still not received the appointed dates.
Sanjay Bansal
So total two projects. One is Thopur guard the another one Thopur guard with project and another is observatory Tower. There are two projects where appointed debt is awaiting.
Shravan Shah
Okay, got it. And sir, in terms of the inventory level, obviously, that’s the main thing we are also trying to reduce. So, but it is still not happening to the way it should be, though our revenue is on the lower side, the absolute or maybe in the days terms also, it looks similar. So is there a thing that we are planning to maybe not have some part of the inventory, which maybe because now we are not having a kind of a growth that needs such inventory even for next year also when we are seeing the similar kind of a number, then why not to release some working capital from the inventory.
Rohan Suryavanshi
Shanthi, it is our endeavor, like we mentioned earlier as well to — while we’re focusing all different areas of the company to keep reducing this as well as our model keeps shifting. But given that we still have all our equipment, which is doing all this job in-house and there is a significant life there. So the model will not change overnight, but there are changes that we are making and those changes will show gradually thing that will happen. In terms of working capital days, where we are at was very similar to where the industry is at. So this model that we had done was not only done for growth when it came to sort of doing things in-house, it was also factor of taking complete ownership of a project, completing it within timelines building strength in-house rather than relying on someone else.
So it wasn’t just this model had not been borne out of a for a hunger or thirst for growth that we were doing that. In that case, actually, we would have relied on partnership. It was actually based on necessity where at that time the ecosystem was not supportive enough to be able to provide all that we needed to do. So which is why we had to take these matters within our own hands. But rest assured, it is one of the key things that we as a company are also looking at. As we look at improving our return ratios, this will also kind of is a part of how we will do that and it’s a journey. So bear with us on that, that, but it’s a journey and it will take that time and you will see improvements happening on it along the way.
Shravan Shah
Okay. And sir, this we will be listing, so it will have the — all the alpha alternative 18-odd assets. So whatever initially will be the — where we have achieved the PCOD that will get listed. And as and when the other assets achieve the PCOD, it will be a part of that — that’s the way or entirely the 18 together will initially get — will be part of the and get listed.
Sanjay Bansal
So jee, you are right. First, the completed asset where we have already transferred 26% will go in. And second part, on progressive basis, the other assets will also basically go into. But at the same time in previous calls also, this InvIT is set-up for our DBL assets and we are — the will basically the assets from market also. So from market also, there’ll be few assets in the InvIT.
Shravan Shah
Okay, okay. Got it, sir. Thank you, sir. All the best.
Operator
Thank you,. The next question comes from the line of Pranav Furya from Antique Stock Broking. Please go-ahead.
Pranav Furia
Yeah, thank you for the opportunity, sir. I just wanted to understand, sir, is there any vertical specifically that you can target so that the timelines between an L1 and actual execution is lower and can help you with FY ’26 revenues itself?
Rohan Suryavanshi
There is no new vertical that we are particularly looking or chasing that will kind of do that. There are already eight, nine verticals that the company is operating in. Each vertical has its own pros and cons. The idea for the company whenever we’ve gone into a vertical has been that we try and utilize our equipment bank in all those areas where our manpower skills, our equipment bank, our experience of working in the state and with the agencies also comes to help and support that. So that is how we kind of go into it. There is no specific agenda and plan that where building from the bid winning to execution pace kind of will be the deciding factor for us to choose a sector because those things are out of our control totally. In large infrastructure projects, there are lot of government agencies involved. There are land acquisition challenges, there are multiple sort of things that you look at. So that is never the decision-making criteria for us as a company.
Pranav Furia
Got it, sir. So sir, could you just highlight one or two sectors from the current order book, which have the lowest time gap between L1 and execution historically?
Rohan Suryavanshi
No, it all depends on project-to-project. Like I said, there can be times where you could have started even a road project where there was great clearance, no, like I’ll give you the quickest that a company has done a road project has been six months. So it was a two-year project which was completed in six months and we won a lot of early completion bonus in that. So there you can’t say — so now imagine from the date of appointment to finishing a project in the next six months versus — so it has done in one-fourth of the time because everything was clear given and we could do that kind of execution. So it all depends on multiple factors. It would be misleading to give you this is what would be the best.
Pranav Furia
Got it, sir. Got it, sir. That’s it from my side. Thank you. Thank you.
Operator
Thank you, sir. The next question comes from the line of Sanjay Parik from Sohoum Asset Managers Private Limited. Please go-ahead.
Sanjay Parekh
Yeah, yeah. Thank you. So one is, you know in our coal subsidiary, we’ve done very well. So is there scope for further contracts or I mean, we are at 25 million run-rate, which is commendable and our target is to go to EUR50 million. So the question I have is, are we — can we get more contracts on this? And secondly, are we on a run-rate of EUR50 million plan that we have.
Rohan Suryavanshi
We are very actively looking at this sector. It’s a sector that we have been there in for the last seven, eight years and we have expanded and significantly ramped-up our presence in it. So we are constantly looking for coal projects, both domestically and internationally to kind of keep supporting. It’s a sector that we’ve now understood pretty well and you want to do that. Now in terms of run-rate, the plans for both the MDOs ramping-up, C1, there is Pashwara MDO and then there is CRMAL MDO. Pashwana, we are already doing at peak capacity. In CRMAL, every year we have to keep increasing the capacity over the next three years. So that is happening. That is happening at an accelerated pace and we will continue to sort of increase the coal sort of output every year.
Sanjay Bansal
To add to the, in CRMAL, already the peak requirement is 50 million ton. So this year we are ending at 18 million ton next year ’25 and so on in FY ’28, the peak rep credit capacity, 50 million tonne will be achieved. So with these two MDOs, we are already at 57 and we are looking for new projects as well.
Sanjay Parekh
Sure, sure, sure. Secondly, our target of final InvIT value of our share of INR4,000 crores in 2.5 years. Are we on-track on that?
Sanjay Bansal
So the number is given in the previous call is there. However, there will be final valuation is underway once the document is filed, but we are having the similar kind of number.
Sanjay Parekh
Yeah. So it could be INR0, INR300 crores here or there. But broadly the price-to-book multiples that we’ve agreed-upon broadly we should take us through a final equity value of INR3,700 crore to INR4,000 crores.
Sanjay Bansal
And then you volumes come multiply will change that change is only due to the some descope on the BPC value. So around still same as our Kani project, Pajas, Sat descoping together. So BPC will change and accordingly, BCC will be changed. So Pajas, so chroloca evaluation open. The multiple is the same.
Sanjay Parekh
Sure, sure, sure. And basic thing, so 26% you transfer in these other assets and 74% when it becomes a public invent also you transfer in that. Is that the way? I’m just not clear on that, the balance 74%.
Sanjay Bansal
Basically, basically the deal with Alpha is basically we will sell 26% into buckets, eight asset first and then 10 assets and Alpha will transfer there 26% and we will transfer about 24% in the Invent.
Sanjay Parekh
Okay. Okay. Got it. Got it. Perfect. And the last one, I mean, you did discuss on order inflows not happening and of course, a bit of it is government-related. So because our is a high fixed-cost of our own equipments, our own manpower, which works in a in a cycle which is really roaring because your efficiency and margins can get better. But if you were to go asset-light and people light over a period because we are cyclical in order inflows, the industry is in a cyclical way. So can we do it or it is difficult to change over a period of time, not one year, but three to five years, is it possible or no?
Sanjay Bansal
Already Sanjay specialized Pharma Company they can get to derisk diversification and asset-light model called. Agarap revenue versus equipment code can get to mission may unlock set of equipment like Tahi, DEM Lectay, road malag. So is there a asset-light versusage company asset, a combination hybrid model Amnika or Uskar Acha where derisk, hey, yeah, diversify see. So purchase Hamlone Karim 9 sector may diversify care in the similar nature of the work, similar just say concrete batching plant then maybe same, Vishal maybe same. So if there is a asset-light or company asset, Hamlog already hybrid Spay,, Hamlo investment equipment who is?
Sanjay Parekh
Sure, sure, sure. And the last one, while, of course, all of us are disappointed with the government coming back on order book. But do you think Jan onwards because on a — we do see now numbers coming up in terms of — because they also have to spend as per the budget and for them to revive also, they have to give orders, but you are on-the-ground. So at state and center, do you think six months ahead, things will be really good or you think it will be still a little slow and steady because that’s important, Divin Roji, if you can guide us there.
Sanjay Bansal
Sanjay, this may worried about the project floating you on behalf of Sabika, all the all-company Infra, especially company. Sabil but I have worked INR1.3 lakh crore in China already bid float K away due to different regions, Kaipe Land, UK. So 100% Q1 activity to, okay. So we are not much worried about the state government project. Hamlog central government car be bid for decade. Bhasare bid pipeline already government budget may go decline Nikjay even though Javi budget via FY ’20 fiscal year. So Mujay, Q1 touch activity fast the Najarati on-ground, other may have no experience.
Okay. But last one, Joey is states me like all this and all the popula schemes where you say Unki ability come, SR Lagray, of course, statewise because Amjo other than roads, NHA and North, Johama, other verticals here, state say, Agar can. So do you think things have got stuck and will take time or you think there also you are seeing statewise things getting better. State other ruling state is state ruled like in this state government-based Amarapa Jo Limited projection project only 75% government of India participation to go. Baki, Gujarat and other states, my state related project Ome SR funding the problem Najani Inca impact kind of like in Johamari DBLK spend there usually central government or central government funding based project of each other target.
Sanjay Parekh
Got it. Thank you. Thank you very much and best of best wishes.
Sanjay Bansal
Thank you. Thank you very much.
Operator
The next question comes from the line of Bhavin from Anand Rathi. Please go-ahead.
Bhavin Soni
Yeah, sir, just wanted to understand, sir, what is the money we received for divesting 25% stake?
Rohan Suryavanshi
Sir, what type wasn’t able to hear you.
Bhavin Soni
Can you hear me now?
Rohan Suryavanshi
Yes, sir.
Bhavin Soni
Yeah, sir, just wanted to understand what is the process we received by divesting 25% stake in one of our hem projects?
Rohan Suryavanshi
Hello can you repeat your question please?
Bhavin Soni
Yeah am I audible?
Rohan Suryavanshi
Yeah you are audible.
Bhavin Soni
Just wanted to understand what is the proceed that we received on divesting 25% stake in one of our HEM projects?
Sanjay Bansal
Total — from Alpha against eight assets, we received total INR457 crore money.
Bhavin Soni
Okay, sir, got it. And sir, just wanted to understand, sir how is the — I understand you briefly mentioned, but just wanted to understand how are you going to transfer the asset to the InvIT? Like you know, are we going to transfer entire 74% or we will retain some part of the SPV even after the is formed?
Sanjay Bansal
No, 100% will be transferred to, 26% alpha will transfer, 74% we will transfer. So there’ll be no case Alpha or DBL will have some equity out of those assets.
Bhavin Soni
Okay. Sir. And just one more point from the balance sheet perspective, so once these assets are transferred, it’s 74% stake is transferred. So then will this be accounted as a subsidiary or will be accounted as a fair-value investment to P&L? How we will…
Sanjay Bansal
Our fair-value of the inventory nets?
Bhavin Soni
Okay, sir. Got it, got it. Thank you, sir. That’s one for sure. Thank you.
Sanjay Bansal
Thank you so much.
Operator
Thank you. Ladies and gentlemen, the next question comes from Vignesh from Sequent Investments. Please go-ahead.
Vignesh Iyer
So thank you for the opportunity, sir. Sir, my first question is on the coal part of the business, right? So I was checking our H1 numbers, it was around 10 million ton, which is now increased to 17.5 million ton, which is a — I mean a huge increase if you have to see. I understand there is seasonality in the business. But can I understand what part of our sales and EBITDA for quarter three FY ’25 accounts from coal?
Rohan Suryavanshi
So we don’t give out you know, vertical-wise EBITDA we give a mixed blended number only.
Vignesh Iyer
Okay. Okay, sir. Sir, also coming to the interest part of it, I heard you earlier when you said that there was some increase in working capital, primarily due to receivables. So sir, I was going through the last year’s annual report and I see there are — under the aging schedule, there are certain receivables which are more than three years, which accounts to around INR1,950 crores. So — and since then, I mean from quarter one, quarter two, we have consistently seen increase on increase in our interest outlay at the consolidated level. Can I understand how the aging schedule has panned out in the last nine months and what kind of numbers can we look-forward to in an FY ’25 annual report.
Rohan Suryavanshi
So on one-to-one basis we will discuss these numbers, but however, if there are old debtors and not receivable, we have made sufficient provisions as per the provision metrics.
Vignesh Iyer
Okay, sir. Okay, sir. Got it, sir. That’s all from my side and all the best, sir. Thank you.
Operator
Thank you. Thank you. Ladies and gentlemen, that brings us to the end-of-the question-and-answer session. I would now like to hand the conference over to Mr Rohan for the closing comments.
Rohan Suryavanshi
On behalf of the whole DBL team, I’d like to thank all the participants who came today and asked questions. In case we were not able to answer all your questions, please feel to reach-out to our team at Essential or our internal team at DVL, and be very happy to answer any more questions that you guys have. Thank you, and I wish you guys a great year ahead.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Dilip Buildcon Limited, that concludes this conference. You may now disconnect your lines.