G R Infraprojects Ltd (NSE: GRINFRA) Q2 2025 Earnings Call dated Nov. 08, 2024
Corporate Participants:
Parikshit Kandpal — Analyst
Ajendra Kumar Agarwal — Managing Director
Anand Rathi — Chief Financial Officer
Analysts:
Shravan Shah — Analyst
Alok Deora — Analyst
Sarvesh Gupta — Analyst
Vaibhav Shah — Analyst
Dheeraj Kriplani — Analyst
Parvez Qazi — Analyst
Vineet Pasad — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the G R Infraprojects Limited Q2 and H1 FY ’25 Earnings Conference Call, hosted by HDFC Securities. We have with us today from the management team, Mr. Ajendra Kumar Agarwal, Managing Director, G R Infraprojects Limited; and Mr. Anand Rathi, Group CFO, G R Infraprojects Limited.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] [Operator Instructions]
I now hand the conference over to Mr. Parikshit Kandpal from HDFC Securities. Thank you, and over to you, sir.
Parikshit Kandpal — Analyst
Thank you, Tanya.
Operator
Thank you.
Parikshit Kandpal — Analyst
So we’ll begin the call with the opening remarks from the management team, followed by the Q&A. Over to you, Ajendra. Please give your opening remarks. Thank you.
Ajendra Kumar Agarwal — Managing Director
Thank you, Parikshitji. Good afternoon, ladies and gentlemen. I welcome you all to the second quarter earnings call of G R Infraprojects Limited for financial year ’25. First of all, I would like to wish everyone on the call, a belated Happy Diwali. We are accompanied by Mr. Anand Rathi, the CFO of the company. I would like to start by mentioning that the company has a strong track record of delivering the excellent company, which is inspired by its purpose, having consistency in strategy, execution, result, delivery and stability of management, having effective and transparent governance, focused on quality of projects, which is executing projects in a way that protect people and environment, and with care for employee safety, health and promote diversity and inclusion.
I will now take you through the key highlights of the quarter and recent development in the infrastructure sector, followed by question-and-answer session. On financial highlights of the company, during Q2 FY ’25, the company has recorded revenue from operations of INR1,128 crores as against INR1,574 crores during the same period in the previous financial year. The EBITDA margin for the current quarter stood at 10.39% as against 12.31% during quarter ended September 30, 2023.
During the quarter, company has transferred one operational HAM asset to Bharat Highways InvIT at the valuation of approximately INR339 crores. During the quarter, the company has repaid the debt of INR32.17 crores, which has resulted into improved debt equity ratio to 0.10, which is one of the best in the sector. During the quarter, the company has received pre-COD for two HAM projects and final COD for one HAM project and appointed date for one project.
The company has signed its third power transmission service agreement during this quarter and has commenced the development activity on the same. As on the date, the company has a good mix of 28 projects, which is six are operational, 17 are under construction and five projects are awaiting appointed dates. Moving on the update on order book. As on date, order book stood at INR2,680 crores, out of which INR13,303 crores are under execution and INR4,127 crores are awaiting appointed date.
Further, it includes two projects having L1 status amounting INR3,250 crores, which includes EPC road project in the state of Maharashtra worth INR2,349 crores and a power transmission project of INR900 crores approximately. As on date, the company has submitted 19 highway and railway projects amounting to INR13,900 crores, which are expected to be opened soon. Moving on the sector highlights and infrastructure development of India. This year, awarding activity has been a little muted.
However, looking at the central government commitment, which is evident from the budgetary allocation towards infrastructure, we expect decent flow of awarding activities coming in the next few months of the current financial year. The company is targeting order pipeline of worth — pipeline of INR150,000 crores in a various sector like highways, road, tunnel, metro, PT&D, railways, roadway, etc. Given our track record of state, we are confident of winning the new order to take us the double-digit growth in financial year 2026.
We continue to work towards creating a positive impact on the climate change. We target to be a climate positive business based on Scope one plus two plus three emission according to the greenhouse gas protocol. Our action to meet our ambitions include decreasing carbon emissions and energy consumption, recycling and reuse of waste, reducing freshwater congestion, etc. We continue to tap on different opportunities amounting from aggressive infra growth plan of the government.
That’s all from my side. Over to you, Anandji, for update on financial position of the company. Thank you.
Anand Rathi — Chief Financial Officer
Yes. Thank you, sir. Thank you. And let me take all of you through the financial highlights of the company for the quarter. Our standalone revenue from operations decreased by almost INR446 crores on Y-o-Y basis from INR1,574 crores in Q2 of financial year 2024 to INR1,128 crores in Q2 of the current financial year. This decrease was on account of decrease in execution primarily caused by heavy rainfall and lesser executable order books.
As a result of this, our consolidated revenue from operations to decreased by INR488 crores on Y-o-Y basis from INR1,883 crores in Q2 of FY ’24 to INR1,394 crores in Q2 of the current financial year. Our standalone gross margin has improved actually to 26% almost in quarter ended September 2024 from 24.3% in the same quarter last year. Our stand-alone EBITDA margin is reduced to 10.39% in the quarter ended September 2024 from 12.1% in the same quarter last year.
Our EBITDA margin at the group level has increased to 25.32% in quarter ended September 2024 from 24.81% in quarter ended September 2023. Just to highlight on exceptional items for the current quarter. Company had sold 100% stakes inside wholly-owned subsidiary, namely GR Aligarh Kanpur Highway Private Limited to Bharat Highways InvIT for a total INR339.6 crores. The resulting gain of INR35.6 crores has been disclosed an exceptional item.
Our PAT margin at a standalone level decreased by 6.86% to INR114.82 crores in quarter ended September 2024 as compared to INR123.27 crores in quarter ended September 2023. Our standalone network stood at INR7,466.75 crores at the end of September 2024, which was INR7,195.72 [phonetic] crores at the end of fiscal 2024. Our net worth at consolidated level is INR7,956 crores at the end of September 2024, which was INR7,602 crores at the end of fiscal 2024.
Our standalone revenue borrowing — sorry, my bad – I beg my pardon. Our standalone borrowing at the end of September 2024 is INR689 crores, which includes certain borrowing INR75 crores with debt to equity of 0.010 times. Our consolidated borrowing at the end of September 2024 is INR4,301 crores with debt to equity of 0.55 times. During the quarter, company has made additional fix asset amounting is INR26.79 crores. Our net block of property, plant and equipment, which includes CWIP as INR1,286 crores at the end of current quarter.
Investment in our subsidiary company in form of loans and equity is INR1,895 crores at the end of September 2024. Balance promoter contribution required to be made for our under concession operation projects are approximately INR2,000 crores, of which we are expecting contribution of around INR52,400 [Phonetic] as to our financial year 2025. Our working capital at the end of current quarter has increased by 41 days and it stood at 153 days.
This increase primly on account of increase SPV debtors. Our trade receivable at the standalone basis are INR2,200 crores, including SPV debtor of INR2,000 crores approximately, at the end of September 2024. Our trade receivable at the consolidated level at INR217 crores at the end of September 2024. Our unbilled revenue at the standalone, which is INR527 crores at the end of current quarter. Our unbilled revenue at consolidated level is INR130 crores at the end of September 2024.
Our inventories are at INR625 crores at the end of current quarter as compared to INR768 crores at the end of fiscal 2024. I essentially thank all our stakeholders, including employees, business partners, vendors, bankers and auditors, who have been supporting the company throughout in its transformation journey. On behalf of G R Infraprojects, I thank everyone for attending the sending call. Thank you again.
We are open — Parikshit for Q&A, please. I mean, may I request this to open the session for the question answer.
Questions and Answers:
Operator
Sure, sir. Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hi, sir. Sir, now just to recheck in terms of the guidance. So, obviously, in 1H, the revenue is 19%-odd down for full year, previously we said that we are looking at minus 5% to plus 5%. So now what’s the revised downward guidance and even for FY ’26? So for what the number one can look at?
Anand Rathi
So for current financial year, what we are expecting that may not be — we may not be going, but I believe that we’ll be — because 5% to 10%, the degrowth may be possible for the current financial, right. And for ’26 financial year, I believe that once we are having various projects in our poll, probably we’ll be able to achieve a growth track, it will be again on the growth track, maybe on double digit again, but that depends on how fast and how quick we can get that project and what kind of composition may be EPC and BOT depending on that, probably we’ll be able to get on a back on this route.
Shravan Shah
So sir, just to get the number right. So in terms of the order inflow, so though — so how much we have already received? L1 means how much? And now how much total we are looking at further in the second half?
Anand Rathi
See, so far, including L1, we have received INR5,000 crores, I would say, for the current year, which includes the EPC project of the Maharashtra as well, right. And our target for the current year was around INR20,000 crores. And the INR15,000 crores yet to be, we are expecting we’ll be able to get in the remaining financial years.
Shravan Shah
Okay. Okay. And so this INR15,000 crores would be anything in terms of the road or would be how much and known road would be how much, any broad idea?
Anand Rathi
See, other than road, we are targeting — well, out of the INR20,000 crores so far, I mean, we have received — in INR5,000 crores it is, I would say, — so far, we have received a power transmission project, which are in the range of around INR1,300 crores, INR1,400 crores. But then balance all are road projects, and for balance INR15,000 crores, again, what we are expecting is that 60%, maybe INR9,000 crores, INR10,000 crores would be from road and balance INR4,000 crores, INR5,000 from power transmission or other railway projects, or tunneling and all that, that would be the case.
Shravan Shah
Okay. And then on the margin front, so obviously, this quarter is one of the lowest multi-year lowest margin. So how one can now look at in terms of the margin?
Anand Rathi
See margin, because we are underutilized. We are not able to utilize our capacity for the simple reason that we’re not getting the orders. So you see that our gross margin has improved, but we are not able to because of the overhead. Once we are having an enough order in our pool, we’ll be back on that same margin track.
Again, 14%, 15%, which we are expecting from the EPC. But yes, it may take time because unless until we start utilizing our whole capacity, right? So to that extent, probably in current year, our margin guidance would be same, 12% to 13% for the remaining year — balance of the year, right? But next year, again, we’ll be back on this margin ratio of 14% to 15%.
Shravan Shah
Okay. Got it. And the remaining forehand appointed date and for the transmission and when we are likely to get this appointed date and what’s the value of this where the appointed date is pending?
Ajendra Kumar Agarwal
Our appointed date, we are waiting for appointed date for five of the projects. Out of the five, four are HAM projects and — multimodal logistic park. The recent one, which we got yesterday only where we are heavy L1 status. So I’m not L1 status, we are about the agreement, the projects where we have already entered into the agreement, right? So, there are five projects. Out of the five projects, three projects, we are expecting in next one or two months, the appointed date for those three projects. And next — and remaining two projects, we are expecting that the appointed date would be declared by quarter — last quarter of the current financial year.
Shravan Shah
Okay. Okay, got it. And the equity breakup for FY 2026 and 2027, You said INR350 crores to INR400 crores in second half?
Ajendra Kumar Agarwal
Yes. So for next — I mean after 2025, we would be requiring around INR1,600 crores of the equity contribution, right? It would be — again, it will be increasing next to a half year. So, maybe INR700 crore every year basis.
Shravan Shah
Okay. Got it sir. Thank you. All the best.
Ajendra Kumar Agarwal
Thank you.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Alok Deora
Hi sir, good afternoon. So sir, just again on the execution side. So, this quarter has been extremely low and even if we take a 10% decline for the full year, we are still looking at around the 1,900 kind of average execution for the remaining two quarters. So based on the order book, which we have and I believe October also has been pretty heavy monsoon month, so are we confident on this number or we could see some kind of the best case scenario where we end the year with around 10% lower execution?
Ajendra Kumar Agarwal
We’ll always project the best case scenario, and we’ll try to achieve that scenario, right? As of now, we are having decent executable orders, it’s more than INR13,000 crores and we believe that we are confident I mean and then again, it depends on how that all other formats are have been provided to us or all other approvals are being made available to us. But we are confident we’ll be able to achieve that kind of number, maybe–
Alok Deora
Sure, right. And sir, if we get this appointed dates, it’s like in the next two months and the end of the year, which you just mentioned, so what kind of growth rate you’re looking at for FY ’26?
Anand Rathi
We’ll try if we are getting more EPC projects, we certainly will be able to get more than 10% of gross rate for the next financial year, that is FY ’26. But we want — we certainly would be on growth type, right.
Alok Deora
Got it. And just one last question. The working capital has gone up in the quarter. So how do we see that shaping up ahead?
Anand Rathi
The working capital, if you exclude our SPV debtors, then it actually has gone down because we are not having enough deployment means. Maybe you’ll not be able to deploy whatever. So the idea is to basically not to grow the debt at SPV level and keep the liquidity at holdco level, right? And hence, we are a little bit how — I mean we have planned, because it has to reduce our interest cost at SPV level as also right. And hence, that is our working capital has gone. Otherwise, if you exclude the SPV number, then our working capital has improved significantly.
Alok Deora
Got it. Okay. Sure, sir. That’s all from my side. Thank you and all the best.
Anand Rathi
Thank you.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Sarvesh Gupta
Good afternoon, sir. So this quarter, the execution has been very low for us. So I mean I understand rains and all of that any specific reasons because you still have a recent executed order book in the beginning of this quarter. But still, the execution got been very delayed. So was it related to any one particular geographies, where we were doing some work or
Ajendra Kumar Agarwal
No. So yes, one state where Punjab, we have already mentioned the previous call also, where we are finding the — industry is finding difficult to get the project on exhibition mode. That is one aspect. But largely because of we were not having enough executable orders before the start of this quarter, right. Even at the beginning of this financial year. And I would say, last — in last three, four months, we have got the appointed date for next three or four HAM projects.
So point is we have got the appointed it, but again in the monsoon months. So then we could not get the progress over those projects. But it’s largely because of — see, rainfall is one issue because Q2 is always — always because of high monsoon, that execution is low. But because of — and this particular year, we are largely running sort of our executable order. That’s why we are very much down in terms of our revenue.
Sarvesh Gupta
Okay. And on the NHAI ordering front, any updates because that also has been very slow till now. So how do you see that shaping up for the sector I realize for you in the remaining part of this financial year?
Ajendra Kumar Agarwal
We are quite bullish, I mean, what we — there is a pipeline though there is a good pipeline, maybe of INR131,000 crores, which is again coming from highway sector only. So the pipeline is visible. But so far, for the current financial year, the government has not been — maybe for different reason, this particular sector might not be having proper focus of the government. And I believe that once these elections are over in Maharashtra and other that kind of state, probably that government again would be focusing on highway development, and we’ll be getting more and more orders for the different pathway.
Sarvesh Gupta
Okay. And with Maharashtra, MSRDC order, what is the update on that? And given that elections are there with a possibility of resuming, how do you see that? Is it like something like confirmed for us? Or can you go into some sort of a loop?
Ajendra Kumar Agarwal
This is some — I may not be able to comment. This is the prerogative of the authority. But yes, out of the two projects, we have already signed one agreement. And one is one where we have been declared relevant so far, we are waiting for LoA or — and because of that the Maharashtra state is under election. Probably we have to wait for until that, results are out, right. And because of this Code of Conduct, right now, they’ll not be issuing any letter.
Sarvesh Gupta
Understood. And the Bharat InvIT deal, sir, what kind of price to book — is it closer to 1.1 that we had sold this to?
Ajendra Kumar Agarwal
Yes, its I would say INR339 against we have got — so our book value was around INR300 crores, including debt,…
Sarvesh Gupta
Okay.
Ajendra Kumar Agarwal
…right? And that includes that interest also, which we are recurring on year-on-year basis, right? So on the date to deal, it was almost 1.1.
Sarvesh Gupta
That was the multiple on the invested equity? That you work?
Ajendra Kumar Agarwal
No, no, no, that was not multiple. See we invested — my original investment equity would have been like INR250 crores, INR240 crores. I don’t remember exactly, but including interest, which we are accruing on the loan part, which we have been extending to our HTB, right. So on original equity, I would say it would be more than 1.5%.
Sarvesh Gupta
Okay. Okay. Understood sir. Thank you and all the best.
Ajendra Kumar Agarwal
Thank you.
Operator
Thank you very much. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Vaibhav Shah
Sir, thanks for the opportunity. Sir, if we consider a 10% decline for FY 2025, revenue would be around INR7,000 crores. So over this lower base, don’t we feel that our 10% growth is very minimal? So we’ll go back to 2024 number at around INR7,800 crores for 2026, given the stronger order book we have?
Anand Rathi
No, no, no. So growth point is, again, growth would be subject to what kind of order we’ll be getting for the current — I mean, remaining during the remaining financial year, right? So that I’m saying we may get back on that growth track maybe of 20% or 15% or even in the range of 10%, depending on the other composition which we’ll be getting over the period of next six months.
Vaibhav Shah
Okay. Sir so our total order book as of September, should be around 19,600, right?
Anand Rathi
19,600 plus L1 of power transmission would be more than 20,000 which we got yesterday.
Vaibhav Shah
Okay. So out of this INR19,600 crores, what is the value of product which already under execution right now?
Anand Rathi
INR13,000 crores.
Vaibhav Shah
Would it be closer to INR10,000 crores?
Anand Rathi
INR13,000 crores.
Vaibhav Shah
Okay. And sir, secondly, we saw a higher other income in the first half. So what is our expected distribution? Total distribution from EBIT for the entire year?
Ajendra Kumar Agarwal
What I believe is that we’ll be getting in the range of 11%, 11.5% of the distribution from the NBI. And my total investment in the range of INR2,000 crores. So our total income from InvIT would be in the range of INR200 crores, INR225 crores.
Vaibhav Shah
So in this includes only dividend, right, interest income is over and above this.
Ajendra Kumar Agarwal
Dividend plus interest.
Vaibhav Shah
Okay. So what was the amount in first half dividend plus interest total?
Anand Rathi
First half was around INR134 crores, INR135 crores, something like this.
Vaibhav Shah
So in second half, we expect somewhere around INR90 crores, INR100-odd crores?
Anand Rathi
Yes.
Vaibhav Shah
Okay. Thank you. Sir. Those are my questions.
Anand Rathi
Thank you.
Operator
Thank you very much. The next question is from the line of Dheeraj Kriplani [phonetic] from Avendus Spark. Please go ahead.
Dheeraj Kriplani
Hey, thanks for the opportunity, I just have one question. What amount of capex we can expect in the coming quarters or coming years?
Anand Rathi
Capex we don’t see a big amount. Maybe — I mean, for the year, we are targeting not more than — so, so far, we have done capex of around INR50 crores in H1 we have done. And in H2 also, we don’t expect that more than INR50 crores of the FX will be doing on this. And which includes actually that office building, which we are considering in the Gurugram.
Dheeraj Kriplani
Okay. Yes, this was my question. Thanks.
Anand Rathi
Thank you.
Operator
The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Parvez Qazi
Hi. Good afternoon and thanks for taking my question. Sir, what would be the EPC value of the orders for the two power transmission projects that we have won this year?
Anand Rathi
That would be in the range of put together. Both projects put together would be in the range of INR1,100 crores to INR1,200 crores.
Parvez Qazi
INR1,100 crores to INR1,200 crores. Okay. Sure. Thanks and all the best.
Anand Rathi
Thank you.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Vineet Pasad from Investec. Please go ahead.
Vineet Pasad
Hi. Good afternoon, sir.
Anand Rathi
Yes. Good afternoon, sir,
Vineet Pasad
Anandji what is the risk to our Maharashtra government orders if there’s a change in government? Is there a case that orders which have been placed and on L1 orders, those can be cancelled, or there will be change of work or could go for rebidding, etc?
Ajendra Kumar Agarwal
[Foreign Speech]
Vineet Pasad
Understood. Understood. And the second question is now NHAI ordering has remained muted for almost 1.5, two years now. What it is — why is it taking so long for NHAI’s ordering to come back? Particularly given ordering pipeline, at least for NHAI has always remained strong for the last 1.5, two years?
Ajendra Kumar Agarwal
[Foreign Speech]
Vineet Pasad
Understood. And is there any case of shift in focus for central government or NHAI away from road and focusing more on sectors like renewables or railway etc.
Ajendra Kumar Agarwal
[Foreign Speech]
Vineet Pasad
Understood. And sir, the last question is on building segment. We have alluded to looking at building in factories as a segment and trying to build up a team around it. Can you just highlight what’s the progress on that side? Have we started bidding for it? Or is it still under building phase?
Anand Rathi
It is still under evaluation. I mean, because we have diversified into the last — I would say one year — maybe even three years, we have diversed into different sectors. So we are taking time actually because we have built up a team in tunneling sector, we have built team in roadway, power transmission. So it is taking time. But yes, we are working on it.
Vineet Pasad
Understood, Thank you so much, sir. Thank you.
Anand Rathi
Thank you.
Operator
Thank you very much. [Operator Instructions] The next question is from the line of Veenit Pasad from Investec. Please go ahead.
Vineet Pasad
Sir, just one clarification, you just mentioned that, we have also built a team for tunneling, so will that — will be — only looking at road tunneling related to this or we’re also qualified to take up under ground metros sort of projects or we can have some JB out there and bid for underground metro cable?
Ajendra Kumar Agarwal
[Foreign Speech]
Vineet Pasad
Understood. Understood. Okay. Okay. Thank you so much.
Operator
Thank you very much. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead, sir.
Parikshit Kandpal
Sir, you earlier spoke about the ESG and Sustainability theme, and we also see that you are bidding for the transmission projects now taking larger projects. So first question was that how much will be the equity contribution beyond the road portfolio, which you need to invest for developing the transmission assets? And within the entire transmission ecosystem on the renewable side, so how do you see yourself getting aligned more towards battery storage, solar and other themes? So how do you think you can contribute or participate in that growth story?
Ajendra Kumar Agarwal
We are trying to build this sector, right? And we started with slow pace. And gradually, we are moving and we are targeting even bigger projects, right? So in current year, we are targeting around INR2,000 crores of the transmission EPC order book. And in transmission, generally, we have been targeting through — I mean, we have entered through BOT mode. This is — I mean, BOT mode means where we have to invest our equity as well.
So maybe I would say, for next two to three years, we’ll be targeting around assuming that we’ll be putting what I would say is around INR8,000 crores to INR10,000 crores of transmission EPC we would like to execute in the next three years of time, right? And there, we are expecting to infuse equity to the tune of INR3,000 crores in the next three years of time.
That is our — basically what I would say is that the estimate which we are having in our mind, right? And when you talk about other renewable, other power sector, we are working on it. First, we want to establish ourselves into transmission sector, then certainly, we’ll be exploring other renewable sectors, other power sectors, right? And we’ll be doing much more into power sectors going forward, yes.
Parikshit Kandpal
This you get in the roads alone, you have almost INR2,000 crores spending to be invested. So beyond that, you are planning to invest another INR3,000 crores in transmission boost assets over the next three years. So total outgo in the next three years will be about INR5,000 crores on the equity investment?
Ajendra Kumar Agarwal
Yes, we can assume. So it’s not only into road sector, which includes power sector also, right? In transmission, when we are saying INR2,000 crores is pending for equity infusion in the next two and half year, which includes transmission project as well, whatever — so far we are having, right, in our order book. So yes, you can say in the range of INR4,000 — I mean INR4,000 crores to INR4,500 crores, which is to be infused in — and when you are saying — so this includes that the future transmission project, we’ll be getting more, I would say, road projects as well where we have to infuse more equity as well. So overall, equity infusion for next years would be more than INR5,000 crores.
Parikshit Kandpal
And when I look at the — so this is on the transmission side where you seem to be getting big now. And beyond that, you have BOT toll assets. So now what’s your view on beating on the BOT toll, which would be coming up for the second half? So out of INR9,000 crores, INR10,000 crores order inflow we are expecting from roads, how do you think you will visualize HAM coming in and BOT toll coming in? So what’s your appetite there?
Ajendra Kumar Agarwal
What we are expecting for the current financial year is that maybe in the range of INR5,000 crores to INR7,000 crores of BOT we will be having in our order book by the end of this year and balance would be from HAM or other EPC.
Parikshit Kandpal
So this INR5,000 crores to INR7,000 crores at 30% also will mean about INR2,000 crores. That means over the next three, four years, we’ll be investing close to about INR7,000 crores in equity.
Ajendra Kumar Agarwal
See, when we are saying that INR10,000 crores of the power sector, which will be eventually executed in five years, right?
Parikshit Kandpal
Yes.
Ajendra Kumar Agarwal
Next three years would be eventually executed in the next five years, right? So, we have to take five years of origin, how we’ll be planning our equity infusion and all that, right? And we’ll getting another INR10,000 crores, INR15,000 crores of the BOT projects depending on how — what kind of competitive intensity over there, right?
So yes, I mean, on additional INR10,000 crores to INR15,000 crores equity for the BOT projects, we need another 30% kind of equity infusion for next three to five years, right? So you can say INR5,000 crores additional as a road project — for road project itself, right? So in next, I would say, for five years, we can expect INR10,000 crores of equity investment for the next five years.
Parikshit Kandpal
So how much you fund it? Because I understand that you have a Bharat Highways InvIT where you can monetize and recycle equity and some of your HAM will move there and you will get unlocking. So what kind of unlocking of equity or recycling of annuity while you’re investing INR10,000 crores over the next four, five years, how much do you think you will recoup from your recycling of HAM equity?
And beyond that, are you — any thoughts on how you would derisk your — the portfolio on the transmission side? I mean, are you looking to have some platform like you have for Bharat Highways? So how are you thinking on those lines so that you get more share of EPC than rather investing too much of equity?
Ajendra Kumar Agarwal
I mean that we have proven in past as well while we have created that monetization platform in form of InvIT for Road right. So as of now, we are having enough liquidity in our balance sheet, maybe INR2,000 crores — more than INR2,000 crores in form of the investment in form of the InvIT units, right? And then, as I told in my opening remarks as well, where my SPV debtors are more than INR2,000 crores, right, which can immediately be realized in cash.
And whatever HAM projects we are building, right? And over the period of next two years, we’ll be building that again can be monetized. So far, we have invested into existing in the range of INR1,800 crores. That can also be realized over the period of next two years or next three years. So I would say next three years of time, I’ll be having INR6,000 crores of cash available with me right now, right? So I don’t think — even if, let’s say, we are planning for INR10,000 crores of equity investment in the next five years, that would be a challenge for us.
Of course, we’d be — and we are exploring for transmission as well, the platform where we can create a platform which can actually — eventually help us in monetizing the transmission assets, so far, which we are building right. As on date, we are having four transmission BOT projects in our fold. Going forward, we are targeting more and more transmission projects. So we are expecting that. And we are confident we’ll be able to come out with monetizing platform for transmission assets.
Parikshit Kandpal
The four transmission assets, what will be the total equity investments? I know you have included it in your INR2,000 crores of outgo. So what — if I have to just ask on these four assets, how much is the total equity outlay?
Ajendra Kumar Agarwal
So four includes the latest one, which we got yesterday. The equity investment is around INR200 crores so far, which is not included into the INR2,000 crores, right? But otherwise, total equity investment, proposed equity investment total — I mean, total put together, all four is around INR600 crores.
Parikshit Kandpal
Out of INR600 crores, what is the — what is invested and what is already invested now?
Ajendra Kumar Agarwal
What is already invested? So INR400 crores is we have already accounted for, right. Actually, investment is in the range of INR150 crores…
Parikshit Kandpal
So INR150 crore to balance about INR450 crores is pending to the investor?
Ajendra Kumar Agarwal
Yes, yes.
Parikshit Kandpal
Okay. Sure. Thank you. Those are my question. I’ll ask the operator to follow the queue please.
Ajendra Kumar Agarwal
Thank you.
Operator
Thank you very much. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Sarvesh Gupta
Good afternoon, sir. Sir, essentially, one of the players got banned by NHAI for most year. So how do you see this sort of development happening in that sector wherein this poses a risk for all the major players. And how do you see this sort of reopen effectiveness?
Ajendra Kumar Agarwal
This is unfortunate, I would say. But yes, this remains — you have to be transparent and while dealing with everybody in the sector, right? So I think it’s case between these two parties, I may not be able to comment on this more than this because I’m not a privy what information are — I mean I’m not privy of the information, which probably I should have before commenting on this side. But this is unfortunate, I would say.
Sarvesh Gupta
Okay. Does it increase the opportunities for the for players like us because they will be slightly less strong?
Ajendra Kumar Agarwal
If someone is banned out of 10, if one or two is banned, let’s say, and certainly that the opportunity increases for the for the remaining seven, eight are there. I mean let’s go without.
Sarvesh Gupta
Okay. And sir, I think you have done some MOU that indicate also regarding the transmission assets. So is that the platform that you are alluding to, while talking about the downloading of the transmission assets from the company to release the equity?
Ajendra Kumar Agarwal
Yes, we entered into an MOU with indicate maybe two aspects, right, when we started our transmission generally well. But also this year — last — during last two years, we have realized that probably will be able to build — I mean, we have enough, I would say, asset into our fold. Then secondly will be exploring more such kind of opportunity — maybe will be entering into JV with some investors or some other sort of monetizing platform, which can be — which would be eventually helping us there monetizing those chances at whatever those chances, we’ll be building, right. And actually help — it would certainly be helping us in sustaining our transmission business because it’s required equity inclusion to a large extent. So we are exploring, and we are confident we’ll be able to deliver this platform as well.
Sarvesh Gupta
And the margins in the transition EPC business are they similar or different [indecipherable]
Ajendra Kumar Agarwal
Transmission, I would say, largely similar, plus/minus, I would say 1% or 2%. But largely, they are similar.
Sarvesh Gupta
Okay. Thank you so much and all the best.
Ajendra Kumar Agarwal
Thank you.
Operator
Thank you very much. The next question is from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Vaibhav Shah
What was the equity invested in first half?
Ajendra Kumar Agarwal
It is around INR300 crores.
Vaibhav Shah
So the last point I mentioned that incrementally were supposed to put around INR2,100 crores. So how does it add up? So 2,000 — its in September and INR200 crores will add up for the power T&D projects. So incrementally, we are INR2,400 crores, right?
Ajendra Kumar Agarwal
2,200 — last time you call, we told around INR2,000 crores, right? So we have improved so far INR290-odd crores, I mean INR300 crores. So what we are saying is because we have got one more transmission project where we have to put in INR150 crores of equity, right, in the current financial year, right? And the last one, so far, we have not had it. So as of now — as of now, we are having INR2,000 crores of the equity contribution which is pending right.
Vaibhav Shah
And including [indecipherable] it would be 2200, right?
Anand Rathi
INR2,200 crores.
Vaibhav Shah
Okay. So this year, first half is [indecipherable] invested in second half we are expecting other 400. So it could be 700 or for FY ’25 as well?
Anand Rathi
INR700 crores for ’25 yes.
Vaibhav Shah
And should be similar for next two years as well?
Anand Rathi
Yes. Next year too, right.
Vaibhav Shah
Okay. And sir, secondly, on the non-highway side, apart from highways and DND, what kind of margins do we target by bidding for those projects in railway or tunneling?
Anand Rathi
For EPC, if you talk about tunneling or railway, we are expecting same kind of margin in the range of 14%, right, 13, 14, 15, whatever you may say. But then depending on the competitive intensity, right now, we are not getting those project at these kind of margins, right. So what we are trying right now is to basically keep at least a minimum margin of 12% and to get basically — and to diversify ourselves into different sector as well, right? So we’ll be able to — it will be having that opportunity to get more projects into tunneling or grow or power transmission probably we’ll be able to get back to a track of a 14% or 15% kind of EPC.
Vaibhav Shah
Okay. Sir, lastly, on working capital side. So it went up to 153-odd days in 2Q. So how do you see it coming down by March ’25, or it should diminish similar levels?
Ajendra Kumar Agarwal
See, working capital base, excluding SPV debtors — out of 153 days, 113 days is actually contributed by my own SPV debtors. So we excluded SPV debtors, then it is only 40 days. So I think we are at minimum working capital level. I think we are comfortable in this kind of working area.
Vaibhav Shah
So the 150 days number should remain similar in March ’25 as well? Including SPV debtors?
Ajendra Kumar Agarwal
Sir, if we require more cash to invest into our equity, the BOT projects will certainly reduce our SPV debtors and we’ll be putting that money into equity investment, and certainly, it will help us basically to reduce my working capital from 150 to 100 or 120 or whatever. So point is, what I’m saying is 153 days includes 113 days of my SPV debtor. It can be excluded. It can be realizing cash immediately on day one, actually working day is 40 days.
Vaibhav Shah
Okay. Thank you sir. Those are my questions.
Ajendra Kumar Agarwal
Thank you.
Operator
Thank you very much. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead, sir.
Parikshit Kandpal
Thanks for the follow-up. So, just one question. You spoke about INR10,000 crores of transmission projects you look into add in the next five years, I think. So are you looking to do any backward integration here since tower manufacturing or conductors anything you thought on that even for bidding for third party also?
Ajendra Kumar Agarwal
That we can bid for third party, we can do it EPC only also. But that actually is under revolution, right? If we’ll be doing backward integration or not, or what kind of equity division can be done maybe because tower manufacturing, we are having certain fabrications facilities in Gujarat, as well as Rajasthan. So it can be extended for a tower manufacturing that has to be seen. So far this is under revolution.
Parikshit Kandpal
You’re open to bids this for plants like power grade or…?
Ajendra Kumar Agarwal
Yeah.
Parikshit Kandpal
Okay. Thank you sir. I think there are no further questions. So on behalf of HDFC Securities, I would like to thank you for giving us this opportunity to host the call. If you have any further comments, please feel comfortable to contact.
Ajendra Kumar Agarwal
Thank you sir. [Foreign Speech] Thank you, Thank you to all.
Operator
[Operator Closing Remarks]