HG Infra Engineering Ltd (HGINFRA) Q4 FY23 Earnings Concall Transcript

HG Infra Engineering Ltd (NSE:HGINFRA) Q4 FY23 Earnings Concall dated May. 11, 2023.

Corporate Participants:

Harendra Singh — Chairman and Managing Director

Rajeev Mishra — Chief Financial Officer

Analysts:

Sana Kapoor — Analyst

Mohit Kumar — ICICI Securities — Analyst

Parikshit Kandpal — HDFC Securities — Analyst

Jiten Rushi — Axis Capital — Analyst

Shravan Shah — Dolat Capital — Analyst

Prem Khurana — Anand Rathi — Analyst

Nikhil Abhyankar — ICICI Securities — Analyst

Anupam Gupta — IIFL — Analyst

Abhineet Anand — Emkay Global Financial Services — Analyst

Sarvesh Gupta — Maximal Capital — Analyst

Deepika Bhandari — PhillipCapital — Analyst

Shreyas Mehta — Equirus — Analyst

Chinmay — Emkay Global Financial Services — Analyst

Shekhar Mundra — Commercial — Analyst

khushbu gandhi — Yes Securities — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the HG Infra Engineering Limited Q4 FY ’23 Earnings Conference Call, hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Ms. Sana Kapoor from Go India Advisors. Thank you and over to you ma’am.

Sana Kapoor — Analyst

Thank you, Fazlan. Good afternoon, everybody, and welcome to HG Infra Engineering Limited earnings call to discuss the Q4 and FY ’23 results. We have on the call, Mr. Harendra Singh, Chairman and Managing Director; Mr. Arvind Khandelwal, President Strategy, and Mr. Rajeev Mishra, Chief Financial Officer. We must remind you that the discussion on today’s call may include forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces.

May I now request Mr. Harendra Singh to take us through the company’s business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you sir.

Harendra Singh — Chairman and Managing Director

Thank you, Sana. Good afternoon, ladies and gentlemen. Welcome everyone to the Q4 and FY ’23 earnings call. I hope you all are well, and have got the chance to view the investors presentation and the results that we’re uploaded on the exchanges. I’m pleased to announce that with the grace of God, this year has been phenomenal for us, right from diversification of our order book by securing three non-road projects this year, followed by successfully entering into a share purchase agreement for monetizing of our four HAM projects, which would further strengthen our balance sheet. Furthermore, we have strengthened our position in the highway and road sector with the two successful HAM projects for FY ’23. The company has established outstanding performance in FY ’23 across all areas.

Let me start with the yearly financial performance of the company. In FY ’23, the standalone overall revenue was INR4,419 crores, which increased by 22.2% Y-o-Y from INR3,615 crores in FY ’22. The EBITDA for FY ’23 was INR710 crores showing a year-on year growth of 21.5%, with an EBITDA margin of 16.1%. The PAT margins for FY ’23 was 9.5% and the profit after tax for the period FY ’23 is INR422 crores, which is an increase from INR339 crores in FY ’22.

Before I move on to the operational and the detailed financial numbers of the company, let me share a few updates on the infrastructure sector to establish the business opportunities in the years to come.

Talking of roads, the central government intends to accelerate the construction of roads in FY ’24 with awarding of new projects of 12,000 to 12,500 odd kilometers this year, along with focus on the project completion ahead of the general election is expected to boost execution in FY ’24. More target to build 45 kilometers of roadways each day of FY ’24, this implies construction of around 16,000 kilometers of road in a year, which will be a record high.

MoRTH plans to initiate the second phase of Bharatmala Pariyojana soon and railways. Again, the capital expenditure in the railway sector have been consistently increasing over the past four years, and is expected to reach a projected amount of INR2.5 lakh crores in FY ’23. The government aiming to upgrade the redevelopment of 1,275 odd stations primarily through the EPC mode, under the Amrit Bharat scheme.

The government has allocated a budget of INR98,000 crores for monetization and expansion of airports over the next five years. Of this budget, INR60,000 crores will be used to enhance the existing airports while INR38,000 crores has been set-aside for the development of new greenfield airports. The world’s fastest-growing aviation market teams to boost the number of airports to 220 by 2025 from the current 148. It involves Greenfield projects, new terminals and takeover of the existing airports.

The water, again, where the Jal Jeevan Mission is quite impressive with increased budgetary allocation, the priority being accorded by the Government of India to provide safe drinking water to the rural households. We as a company see abundant presence of opportunities to diversify and look-forward to get some more projects in these fronts to.

Now I would like to share the operational updates on order book, project execution and other significant events. As of FY ’23, our order book has reached INR12,595 crores. There is a bit correction in the investor presentation, we have corrected because there are two projects which was having the GST correction. So, this INR12,595 crore with an order inflow of INR8,650 crores during the year. We have established our footprint in 11 states with the EPC segment accounting for 55% and the HAM segment accounting for 45%.

We would further like to grow our order book in this financial year majorly from roads and highways segment, but we would like to further extend our presence in other sectors too, including water, railways and other opportunities.

During the year, we have secured three HAM projects and see non-road projects, which I would like to mention, apart from the Ganga Expressway project of Adani. Karnal Ring Road project, that is a HAM project in the State of Haryana is worth INR997 crores. Two HAM projects, in Varanasi, Ranchi Kolkata highways, that is package 13 and 10 in the State of Jharkhand worth INR925 crores and INR1,303 crores respectively. Delhi Metro, the DMRC EPC project valued at INR412 crores that is inclusive of EPC. RVNL new railway line project in Bilaspur, that is in Himachal Pradesh, that is INR466 crores, that is again inclusive of DFC. North Central Railway have rewarded new project on Rampur railway station in the state of Uttar Pradesh, that is INR655 crores, that is inclusive of GST.

I would now touch upon the progress of ongoing projects. Talking of EPC projects with regards to Ganga Expressway, we have executed the project around 12.9%. The urban extension road package that is Karala-Kanjhawala projects in Delhi, execution in around 53%. In the [Indecipherable] Jodhpur project, that is EPC NHAI, the execution stood at 8.4%. The execution progress of Adani Mancherial project is 91.4% where we have already received the PCOD in the month of December.

DV Package 9 execution progressed towards 9.4%, we have already applied for COD very recently. HAM projects where the execution states that the Raipur Vishakhapatnam Odisha Package 5 and package 6 are at 33.4% and 38.3% respectively. They are moving quite well as per the schedule. The execution status of Raipur Vishakhapatnam TP 1 package is 38.8%. The execution status of Khammam-Devarapalle Package 1 and 2 is 6% and 16%, respectively. The Rewari Bypass Project Package 4 is all already 94% completed, and we already applied the PCOD.

We have received Completion Certificate during the year. We received the completion certificate for NHAI DV package 8, DV package 4, IRB Hapur Moradabad project, Adani Mancherial project, and two small Rajasthan EPC projects, namely that Kundal, Jhadol and [Indecipherable]. These are very significant milestone which we just reached, that is monetization of four projects.

Since the past few months, we were continuously under discussion with the prospective investors to monetize our initial four HAM projects. That is Gurgaon Sohna, Rewari Ateli, Ateli Narnaul and [Indecipherable] Bypass.

So, it’s a pleasure to inform you that finally, we have signed share purchase agreement with Highway Infrastructure Trust which is supported by KKR. In the first week of May only, where HG will be selling 100% stake in all these four wholly subsidiaries. The enterprise value for the production is to be INR1,394 crores, having an equity value of INR531 crores. The valuation of the deals is around 1.5 times the price-to-book, which is higher than 1.3 times to 1.4 times as guided by the management earlier. Equity and debt commitments for all four HAM assets are at INR343 crores and INR996 crores respectively.

The entire transaction will be completed in two tranches where first tranche will include three initial HAM projects where we already has achieved the completion, and two second trials that will include Rewari Bypass project, for which the final completion approval is expected by September.

Completion of the sale of these expectations from first tranche which will happen after the satisfaction of the condition precedents [Indecipherable] share purchase agreement, which includes authority, third-party and other regulatory approvals and certain contractual commitments.

We believe this will at a strong valuation will be going to strengthen the balance sheet of the company and will help the company to release capital for future growth. Diversification of order book along with the monetization of HAM projects can give more positive triggers for the company in future.

Now I’d like to invite Rajeev Mishra, our CFO to highlight the quarter and last year’s financial performance of the company.

Rajeev Mishra — Chief Financial Officer

Thank you, sir. Let me give you the key updates on the financials. In FY ’23, the standalone overall revenue was INR4,419 crores, which increased by 32.2% year-on year growth from INR3,615 crores in FY ’22. At consol level, the revenue was INR4,622 crores as compared to INR3,751 in FY’22 with year-on year growth of 23.2%.

At standalone level, the returns for FY ’23 was INR710 crores with Y-o-Y growth of 21.5%, and at consol level, the EBITDA was INR895 crores versus [Indecipherable] growth of 27.1% [Phonetic] The PAT margins for FY ’23 at standalone level was 9.5% and the tax for the period FY ’23 was INR421 crores, vis-a-vis INR339 crores in FY’22. At consol level the PAT was INR493 crores versus INR380 crores in FY’22 with volume growth of 29.8%.

On a standalone basis, the gross debt of the company was INR504 crores, which included working capital debt of INR39 crores. Term loan and current maturities and the trade limits of INR368 crores and NCD of INR97 crores.

At the consol level, the gross debt was INR1,907 crores, which included the project debt of INR1,403 crores. The company continues to remain and maintain an order book ratio of 2.9 times.

For all the 12 HAM projects, the total equity requirement anticipated in FY ’26 stood at INR1,612 crores. Out of this, an investment of INR736 crores has been done as on March 23, and a projection of [Indecipherable] project for INR440 crores which anticipated in this remaining financial year FY ’24.

Coming to the quarterly financial performance, on standalone basis, in quarter four, the company achieved a standalone top-line of INR1,470 crores vis-a-vis INR1,026 crore. In terms of EBITDA, the company achieved INR238 crores with an EBITDA margin of 16.2% for the said quarter.

The profit before tax for Q2 FY’23 amounted to INR200 crores, representing growth of 64.8% Y-o-Y. The PAT also rose to INR148 crores indicating a year-over-year growth of 62.1%.

On the consol basis, the company has achieved a revenue of INR1,535 crores compared to Q4 of last year. Regarding the EBITDA, the company recorded INR297 crores margin of 19.3%. Furthermore, the profit before-tax for Q4 FY ’23 reached INR231 crores and PAT also experienced a y-o-y increase of INR170 crores, reflecting a growth of 64.4%.

We are happy to share that the company’s performance over the last five years has been exceptionally good with a five-year target for revenue of 26%, EBITDA touching to 28% and PAT at 30%. The ROC and ROE increased to 30% and 24% respectively.

The company has worked dedicated to raise the net working capital cycle to 23 days in FY ’23 as compared to 46 days in FY ’19.

I would like to hand over the call to Mr. Harendra Singh for further future guidance and the business opportunities.

Harendra Singh — Chairman and Managing Director

Thank you, Rajeev. Let me enlighten the forum for the way ahead. HG has laid the groundwork for its expansion phase by emphasizing operational efficiency and effectiveness, cost optimization and timely project execution. The company anticipates securing orders worth INR8,000 crores to INR9,000 crores in FY ’24 to maintain the book-to-bill ratio of more than 2.5 times.

Furthermore, there is a strong NHAI bid of around INR1,10,000 crores which is in pipeline this year. In other sectors, the new projects in railways, we can expect INR50,000 crores will be bid, where we already target for in metro, and they are all yet to be bidded, which gives us a huge opportunity to scale our business and order book. We continue to stress the significance of diversification and as evidenced by our recent order wins for three non-road projects, we aim to have 20% to 25% of our order book comprising non-road projects within next two, three years.

The floor is now open for question-and-answers. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.

Mohit Kumar — ICICI Securities — Analyst

Good evening, sir, and congratulations on a consistent performance and very, very strong track-record. Sir, my question is, sir, on the guidance for FY ’24. Can you please provide us what you expect the revenue? Revenue and the margin for FY ’24, and the order inflow.

Harendra Singh — Chairman and Managing Director

So, order inflow, already we have just touched upon, but we are expecting about INR8,000 crores to INR9,000 crores of orders. Which again, if I can tentatively break it out, we have INR5,000 odd crores of HAM project which tentatively would be targeting to look upon this year. Also, INR1,500 odd crores of EPC projects from NHAI or other HAM highway projects. The balance of about say INR2,000 odd crores is likely to — we are targeting for other than road sectors. As far as execution is concerned, I can go into the breakup of the total orders in hand. We are already in contract orders of five HAM projects, majorly five HAM projects, it is INR3,000 crores of order, out of which we are expecting to execute INR1,800 crores during the year. The NHAI EPC project that is majorly two, one is the Delhi UER project and the second is Neelmangala-Tumkur project where we expect that during the year, we would be doing INR850 odd crores of execution and the Ganga Expressway project is around, we are expecting some INR2,000 crores of execution, where there is around INR3,900 odd crores of balance work is there. And this INR400 crores of execution we are expecting from three of the non-highway, railway or special project like that, and INR100 odd crores of execution is tentatively from other small leftovers. This taken together is coming out of about 20% to 22% year-on-year, rather 23%.

Mohit Kumar — ICICI Securities — Analyst

Sir, the second question was along the monetization. If I remember correctly, I think you are getting INR5.3 billion — INR530 crores for an investment of around INR300 odd crores. Is the number, right?

Harendra Singh — Chairman and Managing Director

It’s INR343 crores to be very specific.

Mohit Kumar — ICICI Securities — Analyst

Okay, understood, sir. Thirdly, sir for the tendering of road for the FY ’23, I think was slightly on the lower side. However, the HAM proportion was much, much higher. You did mention that 1.1 trillion order is in the pipeline. Is this tender as of now open for bidding, in the sense open bidding, and expect this number to increase as we complete FY ’24? And why is HAM proportion in this pipeline?

Harendra Singh — Chairman and Managing Director

So what you are talking, I think you are talking of the bidding by NHAI. That has been indicated as already being given as a guidance from NHAI ministry, that they are all looking forward awarding this much of size of orders. It is almost about 6,500 to 5,000 kilometers from NHAI and the balance from MoRTH.

Mohit Kumar — ICICI Securities — Analyst

Sir, my question was this 1.1 trillion number looks to be slightly on the lower site for the industry.

Harendra Singh — Chairman and Managing Director

So, I can’t just, so what do you want to [Speech Overlap]

Rajeev Mishra — Chief Financial Officer

Can you repeat please?

Mohit Kumar — ICICI Securities — Analyst

No, no, no, my question was, sir, this 1.1 trillion number, is it — I think is on the lower side. We used to do 1.5 trillion, 1.6 trillion.

Harendra Singh — Chairman and Managing Director

See, what actually we have estimated as is what we would be aiming upon to. We are not considering those projects for where we actually as well as geographically, we would not be interested for. Last year, we bidded for almost INR72,000 crores of orders or bids from NHAI. So this year we are looking at about INR1,10,000 crores to be bidded for all NHAI projects.

Mohit Kumar — ICICI Securities — Analyst

Understood, sir. Thank you and all the best sir. Thank you.

Operator

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the question queue. [Operator Instructions] The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Hi, Harendra Ji, congratulation [Technical Issues]

Operator

The audio is muffled from your line. Please use the handset mode.

Parikshit Kandpal — HDFC Securities — Analyst

Hello, is it better now?

Harendra Singh — Chairman and Managing Director

Yeah, yeah.

Parikshit Kandpal — HDFC Securities — Analyst

I was saying, congratulations on the monetization of the four HAM assets and an exceptional year in terms of execution. Sir, my first question is on the diversification. So, we got three projects this year on the railways and metro. So did we bid for any water projects, because lot of our competitors have got water projects. And we have been planning strategizing to bid for water projects. If you can just enlighten us that how much was the bid we have put in the water segment in FY ’23 and what are the plans for FY ’24?

Harendra Singh — Chairman and Managing Director

Thank you very much for your good wishes, Parikshit, and this year, we bidded for five projects of water, three in Rajasthan, while two are in the state of MP. But, definitely, we could not win any of the project, because our estimation which we actually have calculated, we stood abut L4 to L5 range, so it is not that we are not pursuing this particular opportunity. There is a huge potential in the nearby states like MP and even UP and Rajasthan. And Rajasthan, of course there were many bidding, bids were about to be bidded or rewarded, but, of late I think very recently it has been decided there will be awarded in the subsequent part of this financial year, I think post-election. So we are keeping a watch on this particular bidding opportunity and we will be doing so.

Parikshit Kandpal — HDFC Securities — Analyst

Okay, the second question is on the HAM portfolio. Out of 12 MAH assets, four has been monetized. The balance eight HAM asset, do you have any kind of understanding with KKR in future whether they will have a [Indecipherable] on our assets or we will retain the option of exploring it out with other partners as well. So how will be the strategy working out there in terms of future monetization in the portfolio?

Harendra Singh — Chairman and Managing Director

See. The understanding has been very clear, ultimately there has to a good association from any of your part, we are having, say, backup of their fund management and we are having the backup [Indecipherable] of our EPC. So, this is our understanding where we are actually looking beyond that up to four HAM projects. Suppose that if want to — whatever we continue to develop or construct, we would be looking at, but definitely it all depends upon the technical due-diligence and other factors which really better is a matter where the valuation is also there, but we believe that this is a strong relationship and this is going to be continuing in future.

Parikshit Kandpal — HDFC Securities — Analyst

Okay, and do we think to extend this relationship beyond, may be in TB CBR [Phonetic] power sector and [Indecipherable].

Harendra Singh — Chairman and Managing Director

But very recently, it has been concluded for highway, but they have showed the interest in the company that we can look and look beyond even wherever you would be interested in other sector other than the highway sector even, but I cannot comment right now.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And the last question to Rajeev. Rajeev sir, if you can give breakup of out of the 12 HAM project, four has already been invested, equity is already done. The balance eight project, what is the total investment in equity, what is the balance requirement over the next till FY’26, if you can give us.

Rajeev Mishra — Chief Financial Officer

The total retirement of all these projects in the equity was INR16,000 crores, out of which we have invested, sorry, INR735 crores, we have invested till March, and out of the projects, almost INR440 crores we had to invest in this FY ’24, and for the remaining, we have already configured the projections are to INR359 crores, which is required in FY ’25 for the remaining projects which are already in execution is eight projects.

Parikshit Kandpal — HDFC Securities — Analyst

Sorry, you said INR440 crores in FY ’24 and INR359 crores in FY ’25.

Rajeev Mishra — Chief Financial Officer

[Speech Overlap] That is required.

Parikshit Kandpal — HDFC Securities — Analyst

Okay, INR359 crores in FY ’25, INR440 crores in FY’24 and balance in FY ’26, right?

Rajeev Mishra — Chief Financial Officer

Yes, INR76 odd crores.

Parikshit Kandpal — HDFC Securities — Analyst

INR76 odd crores. Okay sir, thank you and wish you all the best. And again, congratulations on the great deal which you have closed.

Operator

Thank you. [Operator Instructions] The next question is from the line of Jiten Rushi from Axis Capital. Please go ahead.

Jiten Rushi — Axis Capital — Analyst

Good evening, sir. Thank you for my question, and congratulations on the good set of numbers and the closure of the deal. Sir, my question is on the projects of this Khammam-Devarapalle Package 1 and 2. Sir, this quarter in Q4, we haven’t seen any execution and also the Tumkur project also we saw a significant delay in execution. So, any reason what is happening on these three projects, sir?

Harendra Singh — Chairman and Managing Director

Sure, I think in Khammam-Devarapalle Package in 1 and 2, the execution in quarter four of this particular year is around INR21 crores and INR48 crores respectively in KD 1 and 2. This is again because in this project there has been a quite a big variation, which has actually been encountered because of Karnal irrigation department, they are asking for. So almost 50% of the land got affected because of that, where a certain approval is likely to come from NHAI, whether they going for this variation or not. So, this is why I think the execution has been at a slower pace, but I don’t believe that it is going to have effect for much longer time. So, it is going to be resolved very soon and we would be picking back to the normal trend of this milestone which we will be looking at. Meanwhile, Tumkur also, there has been a small variation, which is likely to be there. Because it is in two phase, where the service road being constructed for the first phase and second phase of 18 months is the main candidate to be constructed. So, in service road and main as well, they are looking at the combination where whatever be completed in the service road, it can be parallelly started. There is an approval which is likely to come from NHAI.

Jiten Rushi — Axis Capital — Analyst

So basically sir, in the KD 1 and 2, you said that the valuation approval will come from. What could be the variation? Could it be on the higher side?

Harendra Singh — Chairman and Managing Director

I mean it [Speech Overlap] on the higher side. There are two kind of variations. One is the usage of potash in this particular where NTPC has already been already called, and invited the tenders for transportation of flyash transfer. We also bidded into that. We bidded for material project, but for sure, I think all the variations are on positive side. It’s not on negative.

Jiten Rushi — Axis Capital — Analyst

So, when can we expect a smooth [Indecipherable] to pick up in K 1 and 2.

Harendra Singh — Chairman and Managing Director

It’s not that this is not going on at all or at standstill. Everything is going on, moving on, as per the milestones, we will be achieving them.

Jiten Rushi — Axis Capital — Analyst

So INR21 crores and INR41 crores are still unbilled and the revenue [Speech Overlap]

Harendra Singh — Chairman and Managing Director

No, no, no, the total billed revenue which we did not during the year because we did not, it is all billed revenue, this INR21.85 crores and INR48.3 crores [Phonetic].

Jiten Rushi — Axis Capital — Analyst

And sir, even this Tumkur also should start positively as you said, and the variation will be coming down soon. On the EBITDA and the gross margin we have seen significant improvement. So, any reason for this improvement this quarter before or because [Speech Overlap]

Harendra Singh — Chairman and Managing Director

No, I think it’s a normal trend. It’s not that anything which is actually added into this margin. That’s a very small — you can see the range of growth where employee cost and the cost of material being used, so the OPM has increased. OPM being increased, so the EBITDA has shown the improvement, that is the [Indecipherable]

Jiten Rushi — Axis Capital — Analyst

So the margin guidance remains at 15.5% or 16%? What is your view?

Harendra Singh — Chairman and Managing Director

Sorry?

Jiten Rushi — Axis Capital — Analyst

The EBITDA margin guidance for the next couple of years.

Harendra Singh — Chairman and Managing Director

Tentatively, we expect out of these projects, which we already started the execution and we will be starting the execution, it is roughly around the range of 15%.

Jiten Rushi — Axis Capital — Analyst

It’s 15%, so going forward, you can see some decline in margin because of the change in mix.

Harendra Singh — Chairman and Managing Director

Decline, no. I am doing 16%

Jiten Rushi — Axis Capital — Analyst

Okay, so on the capex front, you have done significant capex this year, if at all we can highlight almost gross [Indecipherable] is almost INR340 crores, right sir? So any capex view going forward.

Harendra Singh — Chairman and Managing Director

Yeah, this year, I think you can see the increase in the term-loan because of that only. The addition of INR220 odd crores of term loan being added during the year. With the closing balance is INR333 crores of term-loan. There is hardly any increase in the OD limits and NCD, etc., but this has been increased because we have added some INR299 crores of gross loan, which is the majority of that portion is the construction equipment which we added. So where the phasing out of the old construction equipment where there are already some life, which we consider and the technology upgradation of all these equipment that has been done strategically. So, the year on now looking to the subsequent years, we would be happy to note that for any of the order execution of 20% growth for the company, it should be somewhere around INR100 odd crores to be added for next two, three years.

Jiten Rushi — Axis Capital — Analyst

Okay, sir. I have more questions, I’ll come back in the queue.

Operator

Thank you. [Operator Instructions] The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.

Shravan Shah — Dolat Capital — Analyst

Thank you. Congratulations on the robust performance and on the monetization of projects. Sir, broader questions has been answered, a couple of things just to understand, first is on the — have we bidded any of the projects where bid is yet to be opened?

Harendra Singh — Chairman and Managing Director

Yeah, there are six bids where the results are yet to be open. They are four projects of Chambal and one more of NHAI project, or rather one more of MoRTH projects, and three projects of railway which is yet to be opened.

Shravan Shah — Dolat Capital — Analyst

So, this six projects is about what how much and the railway projects.

Harendra Singh — Chairman and Managing Director

So altogether is about INR8,000 crores, all of six, seven HAM projects, and Railway projects are a small amount of INR300 crores to INR500 crores. So, total INR8,000 crores.

Shravan Shah — Dolat Capital — Analyst

Okay, okay, got it. Sir, on one on the recently won projects of three HAM projects and Kanpur Central Railway and Bhanupali Bilaspur appointed date, what is the expected deadline?

Harendra Singh — Chairman and Managing Director

So, the RVNL for this Bilaspur project, we have already has a date of 24th of May, of the letter, that would be on 24th of May. Tomorrow we are signing the agreement, and this is how I think. For consideration of closure, I think this is going to delay it, but not more. But at least two-three months because it will take all possible permissions from the nearby authorities where majorly utility shifting electrical etc.

Shravan Shah — Dolat Capital — Analyst

Okay, so maybe by July, August, we will get appointed date for our Kanpur central railway station.

Harendra Singh — Chairman and Managing Director

It is all ready as of now. Yeah, I don’t know, it is like that only, August.

Shravan Shah — Dolat Capital — Analyst

And then for three HAM projects, Karnal and Varanasi Package 10 and 13.

Harendra Singh — Chairman and Managing Director

For Karnal, the total land availability as of now is around 90%, and the crop which was sown there now being harvested, the wheat crop, we are taking the position of the land. As soon as we complete the land position, by June end, we believe that tentatively by June end or by July, we will be taking the appointed date by the time.

Shravan Shah — Dolat Capital — Analyst

And for Varanasi package 10 and 13, October, November or December?

Harendra Singh — Chairman and Managing Director

Yeah, of course, I think it is post monsoon only in any case, because the land compensation is being cared to the owners, and we believe that it is significantly going to improve, once this harvesting has already been done, so by October, November we believe that the likely there was chance where [Indecipherable]

Shravan Shah — Dolat Capital — Analyst

Okay, just a couple of data points in terms of the retention money, mobilization advance, unbilled revenue as on March.

Harendra Singh — Chairman and Managing Director

Unbilled revenue, which is your last point, which has been increased for this financial year because of two three major developments has been there. Where the variation has not yet approved say if we are talking on the unbilled revenue, which is now INR600 something crore to be spent to be rather very specific. So, this is how, INR150 odd crores in HAM only. [Speech Overlap] about INR170 odd crores which is unbilled in GUER and Delhi Vadodara package 8 and 9. And Adani projects also, now the change is there. We have the Ganga expressway followed INR170 off crores of unbilled is there, but now there is a variation being part where the offset construction, which was at a different stage now they relaxed the payment at not at every two meters. Now they realized the payment, so that is how I think within this quarter only, we would be getting significant decrease in unbilled because they would be paying us right on, not at that stage prior to that stage even.

Shravan Shah — Dolat Capital — Analyst

Sorry sir, just to clarify, unbilled revenue total is INR610 crores, retention money is how much and mobilization advances?

Harendra Singh — Chairman and Managing Director

INR580 crore rupees to be very specific. Out of INR580 crore rupees, have given that the HAM projects, it is another INR150 crores, NHAI EPC project is INR165 odd crores. All major amount is there with reserve NHAI has is ganga expressway project, it is INR170 crores. Where it is going to be reduced drastically down because they are now relaxed the stage payments for all the three contractors like we [Indecipherable]

Shravan Shah — Dolat Capital — Analyst

Okay and retention money and mobilization add on, sir.

Harendra Singh — Chairman and Managing Director

Retention money total, debtor balances is what you talking is debtor balance.

Shravan Shah — Dolat Capital — Analyst

No, sir, as on December, it was INR190 odd crores retention money, so what’s the figure for March.

Harendra Singh — Chairman and Managing Director

No, I think are the debtor is INR735 rupees and INR111 crores is retention.

Operator

Thank you, Mr. Shah. May we request that you return to the question queue for follow-up questions here. Thank you. We’ll take the next question from the line of Prem Khurana from Anand Rathi. Please go ahead.

Prem Khurana — Anand Rathi — Analyst

Yeah, thank you for taking my questions. And congratulation on closing the transaction for highways and that too at a pretty good valuations. Sir, just I mean wherein your remark, you said looking…

Harendra Singh — Chairman and Managing Director

Please speak louder.

Prem Khurana — Anand Rathi — Analyst

Yeah, sure, am I audible now. I think initially I mean, in reply to one of the questions, I mean you said, You are expecting some number from INR1,800 odd crore from five hybrid annuity of INR3,000 odd crores with a balanced potential, and you gave us the breakup of some of these other projects. What I realize is I mean, eventually you have not considered any contribution from these three hybrids that you’ve secured recently. So why would that be the case. I mean because, I mean, just now you said you would be able to have ADs in place already taken.

Harendra Singh — Chairman and Managing Director

I think just forgot about it. INR500 crores of contribution we have taken from the HAM projects, newly awarded HAM projects, INR500 crores.

Prem Khurana — Anand Rathi — Analyst

Okay sure. So, which essentially would imply that I mean, you’re looking at more than 23% kind of growth for the year, I mean, on a Y-o-Y basis [Speech Overlap] Roughly it is 23%. Okay. sir. Thank you. That clarifies. Second question was, I mean, if you could talk about competitive intensity, why I asked, this is essentially, you said I mean you bid for almost INR72,000 odd crores of projects in FY ’23 on NHAI side, but we could have only three projects worth around INR3,000 odd crore which is even less than 5% conversion ratio. So, how do you see the conversion work in FY’24. I mean, we are looking at around INR5,000 crore rupees of orders on hybrid and INR1,500 odd crores on the EPC side from NHAI. Do you see competitive intensity to go down now or will remain there and you would have to bid for more to be able to get your numbers in-place.

Harendra Singh — Chairman and Managing Director

We believe that I think with the new this compulsion or triple B rated company, it would be only allowed to bid for HAM project, that is, and there are many projects which for many other media for companies, they are having those projects where the — let’s say, good amount of execution has to be done. So we believe that way I think now, nowadays, we have seen the trend of about five to seven bidders, earlier it was 10 to 12 bidders and all the HAM projects, but EPC, for sure, we are putting our fingers crossed, but we are expecting that least from INR1,000 crores to INR300 odd crores. It can be from even Maharashtra State Road Corporation where they also called EPC projects. So we are looking at those projects as well from EPC line, not only NHAI, MoRTH, some state projects as well especially Maharashtra.

Prem Khurana — Anand Rathi — Analyst

Sure, sir. That answers my question, I’ll come back in the queue for more. Thank you, and all the very best for future.

Operator

Thank you. [Operator Instructions] The next question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead. Mr. Abhyankar, your line is in talk mode, please go ahead with your question.

Nikhil Abhyankar — ICICI Securities — Analyst

Yeah. Congrats on a good set of numbers. I’ve got two questions. So first is on the margins. Sir, is it the case that you’ve given the margin guidance conservatively given the cost prices are coming, the input pressures are coming down. So is there any chance as we go along the year, you might — our operating margins might surprise us on the upside.

Harendra Singh — Chairman and Managing Director

I we think that whatever you are saying, the price escalation clauses is either ways, positive or negative. If the prices are going down, then definitely the price escalation which you would be getting would be equivalent to, so earlier what has happened is because of the steep rise in the commodity of steel, especially steel and crude, it has happened where the dip in the margin, which we have seen the past one and one and a half years, but now it is almost, I believe that 15% to [Indecipherable] that is a decent range which we have been looking upon for all under execution projects.

Nikhil Abhyankar — ICICI Securities — Analyst

Okay, and sir the other question is on last year, there was a lot of talk about government, reducing the grants to 20%, so is there any forward on that from the Ministry?

Harendra Singh — Chairman and Managing Director

Well, as of now, I think they have not given any signal that there is going to be reduced, but they have actually touched upon the lenders as well as concessional interest across the entire fraternity that how it will look like. They always give positive responses, definitely it is going to cool down, the margins of this competition. So that is how we believe I think nothing has happened as of now, there was this and second was the net-worth criteria, but nothing has happened as of now.

Nikhil Abhyankar — ICICI Securities — Analyst

And are we pushing from our end to bring the grants down so that the companies [Speech Overlap]

Harendra Singh — Chairman and Managing Director

There are say various series of these kind of meetings and discussions where they and we together at the NHBF forum, the National Highway Builders Federation. They are all looking to have a conducive arrangement where the projects being done with quality with standards within the timelines, and that is their intention also and we also are looking into that. But I don’t know, how, how long it is going to take.

Nikhil Abhyankar — ICICI Securities — Analyst

Okay sir, thanks a lot and all the best.

Operator

Thank you. Ladies and gentlemen, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the question queue. The next question is from the line of Anupam Gupta from IIFL. Please go ahead.

Anupam Gupta — IIFL — Analyst

Good afternoon, sir, just have a couple of questions. Firstly, the INR530 crores of inflow that is expected from the sale of four projects. When do you expect the money to flow into the balance sheet? So, coming this year?

Harendra Singh — Chairman and Managing Director

Of course, this year only, so it seems we have executed already this [Indecipherable] now, we are going to have those complex compilation and completion of the condition period. We have three projects, which we already have completed. So, we would be applying to NHAI for getting the NOC from them. They take normally take say almost two to two and half month for that. So, they will be looking on the lenders also, that is what is required, and there are certain obligations from either side of the body. But then again, by September, we believe that the first tranche of these three projects where the fund can, we believe that should be transferred to our account, and followed by this Rewari package, we are six months is the requirement from the completion date for the provision completion date. So once we — we already applied the PCOD. So, with that by October or November, we will be applying to NHAI for the necessary permissions. So, by January, we do expect for the second tranche for the fourth project delivered.

Nikhil Abhyankar — ICICI Securities — Analyst

Okay. Okay and second question sir on the execution side, you have given a guidance of close to 23% growth. Do you see any risk to this from, let’s say, the election code of conduct coming in by the end of this year, this calendar year in terms of approvals, so let’s say you talked about the appointed date coming through for the new HAM projects. So are there risk to the execution from the election being there in multiple states.

Harendra Singh — Chairman and Managing Director

I think we have guided upon that the majority of execution is going to be where the appointed date is being declared as of now, as of now. There is just INR500 crores of three HAM projects which where the Karnal project or [Indecipherable] 2 project, so that is only what we have assumed. But we don’t see that by December in any case, this government would be looking into the declaration of the appointed date. I don’t see any challenge into it.

Nikhil Abhyankar — ICICI Securities — Analyst

Okay, and just continuing this on let’s say, if I were to look into FY’25, given that you have INR12,500 crores of order book, ideally 20% growth can be sustained in FY ’25 as well or is it a bit high to expect?

Harendra Singh — Chairman and Managing Director

Yeah, we do expect that whatever arrangements has been done in house is for the capex, technology, human resource and any addition of the range of about 8,000, 9,000 quarters being added during the year and what we believe that 20% is the ideal growth for that range of execution that we would be aiming for, and we believe that is all doable or achievable.

Nikhil Abhyankar — ICICI Securities — Analyst

Okay, understand. That’s all from my side, sir. Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Abhineet Anand from Emkay Global Financial Services. Please go-ahead.

Abhineet Anand — Emkay Global Financial Services — Analyst

Yeah, yeah. I just wanted to know, [Technical Issues]

Operator

Mr. Anand, your audio is breaking. Please check your line.

Harendra Singh — Chairman and Managing Director

A bit louder please.

Abhineet Anand — Emkay Global Financial Services — Analyst

Yeah, I’m saying that [Technical Issues]

Operator

Sorry to interrupt you. Audio is not clear from your line, request you to please rejoin the question queue.

Harendra Singh — Chairman and Managing Director

Your voice is breaking. I think you are not audible at all.

Operator

Sorry to interrupt you Mr. Anand, may we request that you return to the question queue. I take the next question from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.

Sarvesh Gupta — Maximal Capital — Analyst

Good evening, sir, and congratulations on a good set of numbers. Sir, one thing on the Ganga Expressway, which is where a lot of your execution will be coming this year. So on the ground situation in terms of land acquisition and other approvals for the 80% odd remaining, how are we placed? And secondly, in terms of the payments from your counterparty, how is it happening given their own challenges that we had earlier seen.

Harendra Singh — Chairman and Managing Director

Yeah, so this Ganga Expressway, unlike the other projects also, we have experienced a good amount of land available on the day one, almost 98% as on date is at level. So that is a good part, and have already has set up big camps along the alignment where every, say 151 kilometer being bifurcated as three projects, not a single project. So that is how I think big force being deployed as far as the execution is concerned. We doing touching around INR6 crores a day as of now. So, there is a pace of execution, which we are doing. Sparing few of the days where they are early, I think once the rainy days has impacted impacted. As far as payment is concerned, we are getting payment right on-time. It was a gap of about say almost one or two. The initial time in March 7. But during the month of April only, we have received INR90 crore from the clients, and they are very clear, and we are very clear, because the government — UP government is having the clear guidance and clear instructions to them, to complete the project by December ’24. So this is how I think for us together, — mainstream win target is to achieve and almost we are — we have taken that INR2000 crores of execution to be done during the year.the run rate which we are doing is almost doable.

Sarvesh Gupta — Maximal Capital — Analyst

Understood. And, secondly, sir, in terms of your cash flows. So, I think we are getting around INR500 odd crores from the sale and post tax, how much it would be and then against that again — we have to anyway spend INR440 crores in new HAM projects and your working capital will also go up. So overall for the year, your interest cost and debt will not sort of come down, right?

Harendra Singh — Chairman and Managing Director

No, as far as the — for the year ’24, the repayment of the debt is — say if you see INR350 crores of term debt, they are out of that INR190 crores — including INR189 crores which is inclusive of NCD payment — repayment. So this would be repaid during the year only, and if you see anything which is say, net of tax, INR531 crore is going to be calculated because it’s a first what we have invested and then when the returns — Actually, the amount is being transferred to you. So this is going to be calculated. We are not calculated yet as of now. So ultimately, INR440 odd crore, which is going to be invested into HAM hardly it matter that what is the tentative cash inflow for coming from HAM monetization.

Sarvesh Gupta — Maximal Capital — Analyst

So overall, debt level should remain broadly at the similar level by the end of next financial year?

Harendra Singh — Chairman and Managing Director

No not at all. I think it’s going to be roughly come down to around say INR350 crores as was the earlier level.

Shravan Shah — Dolat Capital — Analyst

Understood. And what would be of your interest cost because your debt is much lower. So what is the non-interest cost which is included in your financial cost for FY ’23?

Harendra Singh — Chairman and Managing Director

So, it’s around INR63 rupees of total cost were around say INR14 crore or INR15 odd crores was through bank charges, BG commission, etc. The remaining is the interest cost on the mobilization advance, which we have received from the client even the OD limits and NCD interest and the term loan interest cost.

Sarvesh Gupta — Maximal Capital — Analyst

Understood. Thank you sir. Thank you.

Harendra Singh — Chairman and Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Deepika from PhillipCapital. Please go ahead.

Deepika Bhandari — PhillipCapital — Analyst

Hi, sir, congratulations on great set of numbers. My question pertains to the deal. How much in crores do we expect this year, I mean the deal executes for this three projects that you said would be completed — when will the first tranche will be completed, and how do we expect the inflows and in what manner?

Harendra Singh — Chairman and Managing Director

So we are going to be getting the inflows one by one — all projects do have was different range of, say, monetization, so the total enterprise value, which is INR1,300 something crore, out of this debt you take out this INR531 crores, is the equity realization.So all four project do have different set of numbers. So once we complete condition precedents for the one project, we will be getting the amount.

Deepika Bhandari — PhillipCapital — Analyst

So how much — by this year only. And how much in the — are we expecting something in Q1.

Harendra Singh — Chairman and Managing Director

No Q1 is not at all possible because our all NOCs are not going to happen by that time. So we would be getting — the arrangements would be done. We believe that in quarter two, say first tranche and then quarter three or quarter four for the second tranche.

Deepika Bhandari — PhillipCapital — Analyst

Okay sir. Also sir, I’m going to also talk about the next quarter, quarter one, so how do we expect the Q — we are targeting a very strong number for FY ’24, which looks like achievable also, but how do we see quarter one, especially when not being affected with the heavy monsoons. Of course, different geographies in our country.

Harendra Singh — Chairman and Managing Director

Yeah. I think, in [Indecipherable] years experience range across the entire country and what was the project, what impacted because of that execution. In March, even it was impacted otherwise say we would have lost INR150 crores of execution in March as well, but I don’t see much of a challenge. I think we are expecting the 23% year or in quarter to quarter again for last year to this year would be growing on that range.

Deepika Bhandari — PhillipCapital — Analyst

Okay, thank you, sir. All the best for the future.

Harendra Singh — Chairman and Managing Director

Thank you.

Operator

The next question is from the line of Shreyas Mehta from Equirus. Please go ahead.

Shreyas Mehta — Equirus — Analyst

Yeah, congratulations on a great set of numbers and for the deal. Sir, my two questions, one, as far as the monetization is concerned, could we see some deals happening at the pre-construction stage now, given that you know we are getting better deals at this time?

Harendra Singh — Chairman and Managing Director

No, it’s not like that. I think there is always inclination from any potential buyer to enter into a such stage, but we always believe that it is better to initiate your discussion once we are nearing your completion, and that is how I think six, seven, eight months and we actually complete the work and by that time, actually technical due-diligence and everything happens. So this is not the right stage which we are not actually has initiated and we don’t believe that we are expecting for these five projects which are under execution, that from March still the October, November, these all five would be completed next year, the ’24. So the right time for that is, say, from January onwards, we would be putting on to the market or the buyers that this is going to happen, and this I think whatever is important is that is not at the pre-construction or this construction stage.

Shreyas Mehta — Equirus — Analyst

Got it. sir. And sir, besides, railways and waters, are we targeting any other segments like say MMLPs or ropeways.

Harendra Singh — Chairman and Managing Director

Yeah, of course, ropeways, we are exploring. We have already hired some consultant to give a deep detailed insight of all these projects where the operational and maintenance is a big number, which is going to be there. So, but again our business development team is working on it. Because, I think in Parvatmala project like Bharat Mala is Parvatmala, they have given this name, so they are exploring the possibilities for at least, say, INR300 crores to INR400 odd crores of ropeways to be awarded in next two, three years. So, it gives us real opportunity and tunnel also we expect that in border roads organization and many of the organization, they are looking upon it, but we would be already — say it’s all highway projects and other in tunnel, even in Railway. But even in this particular sector as well to just tie-up with any of the JV partners.

Sarvesh Gupta — Maximal Capital — Analyst

Okay, sure, and sir, lastly, I mean, just wanted to understand the secret of our the margins which you are making. So, we are at the higher-end of what the industry is making. So sir, what gives us this confidence that we’ll be able to manage and how are we managing that in terms of the industry margins?

Harendra Singh — Chairman and Managing Director

I think it’s not very specific around. There are many areas [Indecipherable] and the god was so kind that in the last five years, once we entered into this market, we have learned a lot. We have improvised upon we have always try to evolve upon say any metrices. It can be technology, digitalization, it can be human resource, capex addition, key difference being added, so this somehow those things have been being arranged or being brought out in that range. So, as I already expressed that god is so kind and we are actually yielding this kind of results, but the team is quite motivated, that is more important, but the entire team, top to bottom, at the project-level also has totally geared up to look into all the [Indecipherable] and process controls, they are working hard on bang on those targets, right from time to even operational efficiency. So, these are all helping us and there are say likely it’s not that, it is total arrangement being done. We always keep on annual operating plans to be rolling. We always keep on certain targets for any technology to any human resource planning and development and mentoring. So, this I think things are happening quite well and we believe that is a continuous process, it’s not that we have achieved any level of [Indecipherable].

Sarvesh Gupta — Maximal Capital — Analyst

Got it. Sure, sir. And sir, lastly if I can. In terms of date as what could be outstanding of the total details the Adani details for the Ganga Expressway.

Harendra Singh — Chairman and Managing Director

See the Adani details, I have already said it is a INR290 crores to be very specific. Out of this we will receive INR189 crores during the month of April. And now May, they will paying us INR110 crore on Monday, so things are rolling.

Shreyas Mehta — Equirus — Analyst

Got it, sir. Sure, sir. Thank you and all the best, sir.

Operator

Thank you. The next question is from the line of Chinmay from Emkay Global Financial Services. Please go ahead.

Chinmay — Emkay Global Financial Services — Analyst

Yeah. Hi, sir. I just had a question. In roads, we have made a — we have bid for INR72,000 crores worth of NHAI projects. Just wanted to know what is the amount for railways and water?

Harendra Singh — Chairman and Managing Director

For this particular year? I couldn’t get your question. Yeah, please.

Chinmay — Emkay Global Financial Services — Analyst

In FY ’23, how many orders have you bid for in railways and water segment?

Harendra Singh — Chairman and Managing Director

Okay. So, in railways or metro or any of those, I think we bidded for almost INR9,000 odd crores, were INR1,000 odd crores of bid is yet to be open, say INR8,000 crores bid already opened. And in railways, metro even, the three projects we bidded. And in the water, only four projects we bidded, five in fact from UP, and from MP and Rajasthan. Not a very big amount, so it is almost INR1,600 crores of the total project which have bidded last year.

Chinmay — Emkay Global Financial Services — Analyst

All right. And one more question in order to reach 20% to 25% of order book in terms of railways and water, like do we have any expectation or any target in terms of how many orders would we like to bid upon?

Harendra Singh — Chairman and Managing Director

So you are looking for the forthcoming year?

Chinmay — Emkay Global Financial Services — Analyst

Yes, for FY ’24.

Harendra Singh — Chairman and Managing Director

Yeah. Sure, I think it’s more important for us. We have already has arranged that the business development unit has been created where the two experts they are exploring the opportunity lying in these areas. So, we are doing all our due-diligence to bid for those projects. So, with a small caution, we always put our fingers crossed and look for the margins intact. That is how I think 20%, 25% is not a big number, which will be looking upon of the total order by end of ’25 or ’26 where the total orders are from the — beyond the highway projects.

Chinmay — Emkay Global Financial Services — Analyst

Okay, sir. Those are my questions. Thank you.

Operator

Thank you. The next question is from the line of Jiten Rushi from Axis Capital. Please go ahead.

Jiten Rushi — Axis Capital — Analyst

Thank you for taking my question. So the first thing you said that you are planning to bid for this 50,000 Karkapur projects. So this will include station redevelopment projects also, it will exclude a station redevelopment projects.

Harendra Singh — Chairman and Managing Director

No, it’s not that station projects. Of course, I think within say next three, four, five months, once we have already started the design of this particular project, because there is a lumpsum EPC. So once we start that and then we will be looking at the comparison, which we are stimulated at the previous stage. But then again, we will start exploring. There are bids, but we will be taking a pause of three, four months once we actually come up to the right expectations what we have estimated, and what is good the bank post bidding.

Jiten Rushi — Axis Capital — Analyst

And, sir, one more thing I want to ask like last year we had a big fat order from Adani, and we — as you said that NHAI ordering was [Indecipherable] we could not capitalize on that. So this year being the election, we expect some code of conduct from the January and then another state elections. So how are we targeting [Indecipherable] ordering, because [Indecipherable] last year and if you know, Adani with a big fat order, rules has been [Indecipherable] in terms of inflows in FY ’23. So how do we see that? If you don’t get the orders and probably [Indecipherable] So any thought on that?

Harendra Singh — Chairman and Managing Director

See, already we have learned from NHAI, but there are almost 2,300 kilometers of bids, which they could not award in during this financial year 23rd of March. So there is this pipeline is going to be continued where bidding from June onwards. So, right now, I think there is shuffle. Then again, — there is again NHAO, there are the projects where there is a huge opportunities likely to come, where the sanctions are already at present stage. So by January if you see that every time it sort of second-half of the year, there is our — eventually 70% of the bids or 70% of awarding being done, 70% to 80%. Now this year, I think it will continually would be there in quarter from quarter two, three.

Jiten Rushi — Axis Capital — Analyst

Perfect. This time you can see that slowdown because of election…

Harendra Singh — Chairman and Managing Director

So January is a — I think almost seven, eight months from now. So by the time, I think is most of the base would be awarded.

Jiten Rushi — Axis Capital — Analyst

This NHAO is — what is the opportunity in NHAO you said?

Harendra Singh — Chairman and Managing Director

It’s again for like Bharat Mata is like it is a National Highway Development Program, NHDP and its always from the scheme of that Bharat Mala. NHAO is from scheme of that Bharat Mala.

Jiten Rushi — Axis Capital — Analyst

Sir, last question, what was the mobilization advance within March?

Harendra Singh — Chairman and Managing Director

Mobilization advance? INR360 odd crores I think.

Jiten Rushi — Axis Capital — Analyst

Okay, sir. That’s all from my side. Thank you, and all the best, sir.

Harendra Singh — Chairman and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.

Shravan Shah — Dolat Capital — Analyst

Sir, just to get the number right, retention money you said INR111 odd crores as on March and mobilization advances is INR360 crores.

Harendra Singh — Chairman and Managing Director

I think mobilization advances is mostly $360 crore to $328 crore to be…

Rajeev Mishra — Chief Financial Officer

INR358 crore out which mobilization advance is INR304 crores and material advances INR54 crores.

Harendra Singh — Chairman and Managing Director

Okay. Okay. Yeah, INR360 crore correct, INR359 crore. The [Speech Overlap] retention and business deposit, which will be held. So we have already has considered into debtor balance, it’s total INR880 crore, INR879 crore.

Shravan Shah — Dolat Capital — Analyst

Sorry. I am slightly confused. So total debtor is INR871 crores. So out of that, how much is retention money?

Rajeev Mishra — Chief Financial Officer

[Indecipherable] out of that INR111 crore is retention money and [Speech Overlap] also there INR67 crores. So with that amount we are usually considering the debtor balance because it is a rolling amount, which is being released and being lifted for most of the running bills.

Shravan Shah — Dolat Capital — Analyst

Okay. Okay. And sir, what would be the capex for the ’24 and ’25?

Harendra Singh — Chairman and Managing Director

We tentatively as already as discussed about INR100 crores to be added during the year, this year. There is a net of capex, actually there are few equipment, which we would be selling during the year as well, INR30 crore. So net capex addition would be INR100 odd crores.

Shravan Shah — Dolat Capital — Analyst

Okay. Got it. And sir, any idea you initially mentioned in terms of the NHAI launching a second phase of Bharatmala? Any idea when they are likely to launch in any — but order either in terms of the size because Bharatmala Phase 1 then started with INR6,00,000 odd crore increased to INR11,00,000 crores, INR12,00,000 odd crores. So any broader idea, so just trying to understand in terms of the next four, five, seven, eight years of visibility?

Harendra Singh — Chairman and Managing Director

No. I think it’s a very early state to comment upon, but definitely the entire proposal is at approval stage from the government. We believe that as government is having a very priority proposal for infra redevelopment, especially highways. So, they would be looking into this proposal and approve this proposal by the end of this year.

Shravan Shah — Dolat Capital — Analyst

Awesome. Okay. Thank you. Thank you and all the best.

Operator

Thank you. The next question is from the line of Shekhar Mundra from Commercial. Please go ahead.

Shekhar Mundra — Commercial — Analyst

Hello. I wanted to understand for the four subsidies which we have sold at stake, what was the equity of the subsidiaries? And what was the debt?

Harendra Singh — Chairman and Managing Director

The equity is INR343 crore in all four HAM SPV.

Shekhar Mundra — Commercial — Analyst

Okay.

Harendra Singh — Chairman and Managing Director

The debt, it’s INR996 crore.

Shekhar Mundra — Commercial — Analyst

And so what is the — Okay. So whole enterprise value was INR1,394 crores. And what is the amount…

Harendra Singh — Chairman and Managing Director

See, this INR1,393 crore, it is INR133 crore, this is the cash lying in the SPV, which has been netted off from the debt.

Shekhar Mundra — Commercial — Analyst

Okay. So this 99 — So debt will…

Harendra Singh — Chairman and Managing Director

[Indecipherable] INR860 odd crore and INR531 crore.

Shekhar Mundra — Commercial — Analyst

Okay. So basically the book-value of these projects was INR343 crore, the equity value was INR343 crores and we are getting a INR531 crore equity value. So, is it other income of basically around INR200 crores?

Harendra Singh — Chairman and Managing Director

It’s not other income. This is a return on value. It is a valuation, which we are getting [Indecipherable] equity, which we are interested in the — invested in these four higher projects over a period of last three and half years.

Shekhar Mundra — Commercial — Analyst

Yeah. It’s basically a INR200 crores of income, which is generated by the sale.

Harendra Singh — Chairman and Managing Director

Yeah. It’s all both INR180 crore, INR190 crore, which is over and above [Indecipherable].

Shekhar Mundra — Commercial — Analyst

Okay. All right. And what do you mean by the valuation of the bill was 1.55 price-to-book?

Harendra Singh — Chairman and Managing Director

1.5 times — 1.55 is the valuation, means, if you see to the number 531 divided by 343, [Indecipherable]

Shekhar Mundra — Commercial — Analyst

And out of this four project like how many of them were completed? All three of those projects which we, at the tranche one, we are aiming and looking for the payment to come, all completed. Fourth, we already applied the competition most likely within the, say week or 10 days we will be getting the completion of that, that is a provision completion. There is some work of [Indecipherable] and some of the work in main scope, where six odd percent we executed within next six months. So, post that we will be looking at the second tranche of this particular Rewari Bypass project where the payment is likely by January, we would be completing. Okay. And the construction was done by our company only, right?

Harendra Singh — Chairman and Managing Director

Of course. I think.

Operator

Thank you, Mr. Mundra, may we request that you return to the question queue for follow-up questions. Ladies and gentlemen, we’ll take the last question from the line of Khushbu Gandhi from Yes Securities. Please go ahead. Ms. Gandhi, your line is in talk mode, please go-ahead with your question.

khushbu gandhi — Yes Securities — Analyst

Yes. Can you hear me?

Operator

Yes ma’am. We can hear you.

khushbu gandhi — Yes Securities — Analyst

Yeah sir, thank you for giving me the opportunity. So just a clarification on the revenue guidance, which you have given for FY ’24, so you quoted that 22% to 23% growth we are expecting. But when you gave us the bifurcation, it’s coming to approx 18% to 19%. So, we are expecting a revenue of INR5,200 crores in FY ’24?

Harendra Singh — Chairman and Managing Director

It’s INR5,200 crores and INR500 crores, I missed that, it is roughly at around INR5,500 crores which is 23%, 24% of the total.

khushbu gandhi — Yes Securities — Analyst

Okay sir. If you don’t mind, can you give me the clarification, again — clarification again.

Harendra Singh — Chairman and Managing Director

No, no, see the breakup, which I already have given for the HAM project under individual HAM projects, new HAM projects, Ganga Expressway projects, MHA EPG projects, so altogether, which is coming for the year this FY ’24 is roughly around INR5,500 crores to INR5,600 crores.

khushbu gandhi — Yes Securities — Analyst

Okay, sir, Thanks.

Operator

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.

Harendra Singh — Chairman and Managing Director

Thank you. We had a successful year, and we are committed to deliver better with our dedication and hard work in the future. Our strong financial performance, diverse order book of growth, healthy balance sheet and dedicated workforce give us the confidence that we will continue to excel. We appreciate everyone joining us today on the call, and hope that we have addressed all your questions. If you have any further queries, please do not hesitate to reach out to us or our IR advisers Go India Advisors. Thank you again for your participation.

Operator

[Operator Closing Remarks]