IRB Infrastructure Developers Ltd (IRB) Q2 FY23 Earnings Concall Transcript

IRB Infrastructure Developers Ltd (NSE: IRB) Q2 FY23 Earnings Concall dated Oct. 21, 2022

Corporate Participants:

Anil Yadav — Director of Investor Relations

Tushar Kawedia — Group Chief Financial Officer

Ajay Pralhadrao Deshmukh — Chief Executive Officer of Acquisitions and New Businesses

Analysts:

Mohit Kumar — DAM Capital — Analyst

Teena Virmani — Kotak Securities — Analyst

Viral Shah — Centrum Broking — Analyst

Alok Deora — Motilal Oswal — Analyst

Meet Parikh — Anand Rathi — Analyst

Presentation:

Operator

Good evening, ladies and gentlemen. Welcome to the IRB Infrastructure Developers Conference Call for discussing the Unaudited Financial Results for the Quarter Ended September 30th, 2022, and Recent Developments.

We have with us on the call today. Mr. Virendra Mhaiskar; Mr. Dhananjay Joshi; Mr. Anil Yadav; Mr. Mehul Patel; Ms. Poonam Nishal; and Mr. Tushar Kawedia. [Operator Instructions]. And after the opening remarks by the management, there will be a question-and-answer session. Please note that the duration of the call would be 45 minutes and any queries left answered, after the call can be subsequentially mailed to the management for adequate response and resolution. Please note that this conference is being recorded.

I now request, Mr. Anil Yadav, to give an overview of the significant developments during the quarter. Thank you, and over to you, sir.

Anil Yadav — Director of Investor Relations

Thank you. Good evening, everyone. Our sincere apologies for delaying this call by 15 minutes. I welcome all the investors and analysts on the quarterly con call, hope you all have been able to go through the our detailed number as well as the presentation release. We’re pleased to inform you all that we have successfully refinanced the debt of INR2,100 crores for two projects, that is Kolhapur Yedeshi and Yedeshi Aurangabad of Private InvIT through INR bond with a bullet repayment after five to seven years at the rate of 8.65% per annum. This is a part of our business strategy of written enhancement to leverage optimization, which we have been successfully doing for our projects to the date as well.

With the stronger balance sheet and improved credit rating achieved now, we can seek even better financing term and optimize the capital structure of the project to bring down the cost of funding on ongoing basis. To give you a sense of this lever for every INR1,000 crores of project, refinancing or cost reduction by 2% can lead to at least INR100 crore, that is 10% saving over debt tenure. We have entered the stabilization phase of nine project transferred to the Private InvIT, and this strategy is being implemented there as well.

To start with, we refinanced two projects that is Solapur Yedeshi and Yedeshi Aurangabad, where the debt restructuring and cost revision amount to additional cash flow of INR500 crores over next five years. We feel incredibly happy about the fact that these projects are assigned AAA rating by CRISIL, the first of any BOT toll project in India. The same will be taken up for the rest projects in the phased manner over the coming quarters.

With respect to the VK1, the public InvIT has received an overwhelming response from the unit holder for the acquisition of VK1 at an enterprise value of INR1,297 crores from IRB. We expect to complete the transaction very soon. IRB will get a cash of INR342 crore and debt of INR955 crores will get reduced from the consolidated debt. Now, net debt to equity on a consolidated basis is 0.81:1 as on September 30, 2022. This also helped change in our rating category of IRB. We have moved to AA category in terms of rating by India Ratings from A category.

For Private InvIT one asset Kaithal Rajasthan, we have received close to INR58 crores-INR59 crores from NHAI as interim relief in connection with the claim loss towards the farmer agitation on October 10, 2022. For Ganga Expressway project SPV, we have already infused the INR533 crores of equity out of which INR261 crores was funded by GIC, being a 49% equity partner.

Traffic momentum on Mumbai-Pune reports 10% growth for Q2 FY ’23 as compared to Q2 of FY ’22. AV reports 13% growth on Q2 of FY ’23 as compared to Q2 FY ’22. We have also witnessed 56% growth in toll revenue for Q2 of FY ’23 as compared to Q2 of FY ’22 in nine assets transferred to Private InvIT, excluding the Palsit-Dankuni. EPC revenue is lower on account of monsoon and delaying appointed date in some of the projects. We have received appointed date for Ganga Expressway, and work has started in full swing as initial work like cleaning and grubbing was started much before the appointed date. As stated earlier, the equity for Ganga Expressway will be funded in the ratio of 51:49 by IRB and GIC. And GIC will be contributing more than INR1,000 crores for the project.

With execution on Ganga in full swing, we expect EPC revenue to be in range of INR4,500 crores [Phonetic] for financial year 2022 to 2023, which we have guided at the beginning of the year. With respect to the toll revenue, considering the previous trend, the second half of the fiscal sales to be promising and leading to a strong generation of toll revenue. Considering the upcoming festive season, we have started witnessing an uptick in the traffic movement already, providing us comfort and traction for the coming quarter.

The total order book for the Company now stands at INR20,075 crores, which provides a visibility for next two to three years. Further, with respect to the new assets, a couple of BOT products are already identified to be bidded out in future. Further, we expect robust order pipeline in Q3 and Q4 of the financial year. And we will be bidding for the BOT, TOT and HAM project in the same order of the preference.

Now, I will request Shri. Tushar to continue with the financial overview. Over to you, Tushar.

Operator

Tushar, sir, you may go ahead, your line is in talk mode.

Anil Yadav — Director of Investor Relations

Tushar?

Operator

Sir, just give me a moment.

Tushar Kawedia — Group Chief Financial Officer

So, thank you, sir. Now I’ll take you through the financial analysis for Q2 FY ’23 versus Q2 FY ’22. The total consolidated income for —

Operator

Sir, we are losing the audio, sir.

Tushar Kawedia — Group Chief Financial Officer

Yeah. Sorry for disturbance. I’ll just take you through the financial analysis of Q2 FY ’23 versus Q2 FY ’22.

The total consolidated income for Q2 FY ’23 has decreased to INR1,439 crores from INR1,504 crores, a decline of 4%. The consolidated toll revenues for Q2 FY ’23 have increased to INR494 crores from INR457 crores, registering a growth of 8%. The consolidated construction revenues for Q2 FY ’23 have decreased to INR944 crores as against INR1,047 crores, declined by 15%.

EBITDA stood at INR761 crores from INR757 crores, registering a growth of 1%. Interest has decreased to INR389 crores from INR477 crores, declined by 18%. Depreciation has increased to INR192 crores from INR165 crores, up by 16%. PBT has increased to INR180 crores from INR115 crores, registering a growth of 57%. PAT after share of JV loss has increased to INR85 crores as against INR52 crores in Q2 FY ’22, INR42 crores in FY ’22, registering a growth of 102%. The cash profit has increased to INR302 crores in Q2 FY ’23 from INR242 crores — INR243 crores in Q2 FY 2022, registering a growth of 24%.

Now, I request moderator to open the session for question and answers.

Questions and Answers:

Operator

Thank you, sir. We will now begin with the question-and-answer session. [Operator Instructions]. We take the first question from the line of Mr. Mohit Kumar from DAM Capital. Please go ahead, Sir.

Mohit Kumar — DAM Capital — Analyst

Yeah. Good evening, sir. So two questions, sir, from my side. The first, sir, the —

Operator

Mr. Mohit your line is in talk mode. Sir, please go ahead with your question.

Mohit Kumar — DAM Capital — Analyst

I am audible now? Hello. Am I audible? Hello, am I audible? Hello. Hello. Hello,

Operator

Mr. Mohit, can you hear us, sir?

Mohit Kumar — DAM Capital — Analyst

Yes, I can hear you. Can you hear me?

Operator

As there is no response from the line of Mr. Mohit, we move to the next question. [Operator Instructions]. We take the next question from the line of Teena Virmani from Kotak Securities. Please go ahead.

Teena Virmani — Kotak Securities — Analyst

Hi, sir. My questions are related to this EPC revenue guidance. Is there any change in the guidance? Because here we believe we were expecting little higher because of ramp up on Ganga Expressway and expected inflows in future. So, is there any shortfall that you are expecting on the inflow side for the company, which is — which is basically giving us basically resulting in a guidance of around INR4,500 crores for the current financial year for the EPC side.

Tushar Kawedia — Group Chief Financial Officer

So, Teena, what we are guiding is INR4,500 crore. If you see earlier revenue was gross of GST, now this revenue has been reported as a net of GST. Hence, you are seeing that particular difference. Otherwise our construction revenue targeted INR4,500 for this year is on track. We will try to catch up for the Ganga Expressway, where we have already received the appointed date now.

Ajay Pralhadrao Deshmukh — Chief Executive Officer of Acquisitions and New Businesses

Okay. And any tentative idea on the pipeline of the BOT site that you are seeing for the current fiscal in the second half? And how much are you expecting to win?

Tushar Kawedia — Group Chief Financial Officer

So we expect at least four to five BOT projects getting bid out before March, and we would be evaluating those bids and participate in the same. Plus, we expect a good traction on the HAM projects as well to cater to the EPC requirements, INR5,000 crores to INR7,000 crores of incremental project wins is what we would be looking at.

Teena Virmani — Kotak Securities — Analyst

Sure, sir. And my next question is related to the equity requirements on a year wise basis for Ganga, Palsit and even for the newer inflows that you are expecting. So would the internal approvals be sufficient to take care of the same? If you first quantify the amount and then maybe comment on the other part.

Tushar Kawedia — Group Chief Financial Officer

Sure. So, for this particular fiscal, for the balance period, the equity requirement is around INR200 crores to INR250 crores, INR250 crores. And for next year, it is — the requirement would be for the projects at INR800 crores and balance around INR200 crores in the subsequent year for the project like Ganga, which will continue for FY ’25 as well. With respect to the cash flow as we have already — as we have been discussing that we have growth capital available and the margins what we are generating from our construction revenue would cater this particular requirement for the coming years as well.

Teena Virmani — Kotak Securities — Analyst

Sure, sir. Sure. Just one last question on the changes that were expected on the HAM model. How soon can we expect any clarity on the same from the government side or from NHAI side?

Tushar Kawedia — Group Chief Financial Officer

We did had one round of deliberations that NHAI to discuss these modalities of reducing the upfront payment during construction on HAM project. And as a sector, most companies has given their views to NHAI for — it’s now between NHAI and government to finalize what is the revised structure that they want to announce and we also are keenly awaiting that clarity. But the consensus seems to bring that down to 20% from the conversations what we had in those interactions.

Teena Virmani — Kotak Securities — Analyst

And by when can it come?

Tushar Kawedia — Group Chief Financial Officer

I have really no idea about that because that is something, which NHAI and the government would be deliberating. And once we know more about it, we would be more than happy to share that with you.

Teena Virmani — Kotak Securities — Analyst

Sure. So basically as per the initial plan of NHAI, both the models would co-exist, 40% grant and 20% grant, both will co-exist in the initial — or they would completely replaced that 40% grant with the 20% grant.

Tushar Kawedia — Group Chief Financial Officer

My sense is that, given the available corpus with them and wish to build out a similar number of kilometers on a ongoing basis, they might want to reduce that upfront number and ensure that they have adequate resources to keep funding the project [Technical Issues]

Teena Virmani — Kotak Securities — Analyst

I’m sorry, sir. I’m not able to hear you.

Operator

Participants. It seems that we have lost the connection from the management. Please stay connected while we reconnect.

Tushar Kawedia — Group Chief Financial Officer

Connected. Hello.

Anil Yadav — Director of Investor Relations

Yes, sir. Yes, sir. Yes, sir. We missed last part, sir.

Tushar Kawedia — Group Chief Financial Officer

Teena, extremely sorry. The lines are getting…

Teena Virmani — Kotak Securities — Analyst

No, problem sir.

Tushar Kawedia — Group Chief Financial Officer

But as I said, once — the way we understand it is, once NHAI decides on the revised HAM allocation, I think all — could cater to that new requirement is what my understanding is. I don’t think they would continue both the platforms, projects which have already been bid out, it would continue with the old platform of 40% — construction. And once they bring in the reforms, then the projects that would get bid out after that would cater to the transition of whatever they decide whether it is 20%, 25%, 15% whatever it is.

Teena Virmani — Kotak Securities — Analyst

Okay. Got it, got it, sir. Thanks a lot.

Tushar Kawedia — Group Chief Financial Officer

Thank you. And sorry for the disturbance.

Operator

Thank you very much. We take the next question from the line of Mr. Mohit Kumar from DAM Capital. Please go ahead, sir.

Mohit Kumar — DAM Capital — Analyst

Hi. Good. Am I audible? Hello?

Operator

Mr. Mohit, your line is in talk mode, sir. Please go ahead with your question.

Mohit Kumar — DAM Capital — Analyst

Am I audible? Hello. Hello, hello. Hi, good evening, sir.

Operator

Mr. Mohit, your line is in talk mode, sir. Please go ahead with your question.

Mohit Kumar — DAM Capital — Analyst

Yes, sir. Good evening, sir. I have two questions. First is, sir, on the macro side. How is the pipeline looking at this point of time given that the —

Operator

As there was no response from Mr. Mohit’s line. We move ahead — we move to the next question from the line of Mr. Viral Shah. Please go ahead, sir.

Viral Shah — Centrum Broking — Analyst

Yeah. Good evening, all, wishing you all a very Happy Diwali. Sir, couple of questions from my end. So when you look at in terms of —

Tushar Kawedia — Group Chief Financial Officer

Hello.

Viral Shah — Centrum Broking — Analyst

In terms of strategy — can you hear me? Hello? Hello, can you hear me? Hello, Hello?

Operator

Mr. Viral, can you hear me, sir?

Viral Shah — Centrum Broking — Analyst

Hello. Hello. Hello.

Operator

Mr. Viral, your line is in talk mode, sir. Please go ahead with your question.

Viral Shah — Centrum Broking — Analyst

So, I have — ma’am, can you hear me? Yeah. So basically, when you look at in terms of strategy, when you look at in terms of — when the VGF comes down to 20%. So, are we keen on bidding for projects, where VGF will come down to 20% and still our thought process and IRR of —

Operator

Management, please allow me a moment, I will have to check the line from Mr. Viral. Please stay connected. Participants, we have the line for the management reconnected.

Tushar Kawedia — Group Chief Financial Officer

Yeah.

Operator

Mr. Mohit, we have promoted your question, sir. You may go ahead please.

Tushar Kawedia — Group Chief Financial Officer

There seems to be some problem with Mohit’s line. Every time you are asking Mr. Mohit to ask the question, the line is getting dropped. I don’t know if there is some problem at your end.

Operator

No, sir. Actually I’m just checking, because I’m able to hear you. Give me one moment. I’m just checking the participants line. Thank you for your patience. Sir, I checked the line, from Mr. Mohit, but there is no response. We have a follow-up question from the line of Ms. Teena Virmani. Ma’am, you may go ahead please.

Teena Virmani — Kotak Securities — Analyst

Sir, can you give your standalone debt number?

Tushar Kawedia — Group Chief Financial Officer

Yeah, sure. So for construction side?

Teena Virmani — Kotak Securities — Analyst

Yes. Yes.

Tushar Kawedia — Group Chief Financial Officer

So IRB standalone debt number is INR2,868 crores without working capital.

Teena Virmani — Kotak Securities — Analyst

And with working capital?

Tushar Kawedia — Group Chief Financial Officer

With working capital it is INR3,600 crores.

Teena Virmani — Kotak Securities — Analyst

INR3,600 crores?

Tushar Kawedia — Group Chief Financial Officer

Yeah.

Teena Virmani — Kotak Securities — Analyst

Sure, sir. And, sir, in this quarter, we have also seen some impact on the toll revenues. So, do you think that the traffic is coming back to normal, or is there any kind — is it a general slowdown in the traffic that you are witnessing within this quarter also starting from October?

Tushar Kawedia — Group Chief Financial Officer

So, Teena, for the quarter — on a quarterly basis, we have seen a good growth in the traffic number despite of being a monsoon quarter. And also the current trend, what we always seen is the — because of the festive season, the trend improves a lot. So, that has been — that has been witnessed in the current numbers as well.

Teena Virmani — Kotak Securities — Analyst

Sure, sir. No, I was referring to the sequential decline. So, one impact was because of the monsoon that would have impacted?

Tushar Kawedia — Group Chief Financial Officer

So if you see sequential decline, there is a one-day short for this particular quarter. That is the one reason. But otherwise if you see on a Y-o-Y basis, there is a growth of around 8%. We don’t have any tariff hike for Mumbai-Pune, so whole revenue has been contributed by traffic, which is almost 13% for the Mumbai-Pune.

Teena Virmani — Kotak Securities — Analyst

Okay. And for Ahmedabad-Vadodara, it would be around?

Tushar Kawedia — Group Chief Financial Officer

Sorry, Ahmedabad-Vadodara13% and 10% is for Mumbai-Pune.

Teena Virmani — Kotak Securities — Analyst

Okay. That is only traffic growth?

Tushar Kawedia — Group Chief Financial Officer

So for Mumbai-Pune, it’s only traffic growth, for Ahmedabad-Vadodara, there was a 10% tariff hike, so balance is towards the traffic growth.

Teena Virmani — Kotak Securities — Analyst

So, 2% to 2.5% — around 5%, 6% would have been traffic growth, and 6% to 7% could have been your tariff hike.

Tushar Kawedia — Group Chief Financial Officer

That’s right.

Anil Yadav — Director of Investor Relations

Teena, we also — Teena, we have also witnessed very severe monsoon in Gujarat, and some section of Gujarat also seen some flooding situation in the month of August and end of July. So, that was also one of the reasons for a little lower number on Ahmedabad-Vadodara. And with respect to your previous question what Tushar has said, I want to just add basically if on a INR4,500 crores revenue, which earlier if I would have recorded including the GST, that would have been revenue of more than INR5,000 crores.

And with the netting of the revenue, my EBITDA does not change, my PBT also does not change. Even the profitability also does not change. Only thing which improves is the percentage EBITDA margin, so revenue is not reducing, in fact revenue if we divide by 88%, the revenue INR4,500 divided by 88%, it’s a INR5,100-plus-crores of revenue.

Teena Virmani — Kotak Securities — Analyst

Got it, sir. Got it, got it. I was under the impression that this is — I mean, the GST component was causing the confusion actually.

Anil Yadav — Director of Investor Relations

It’s net revenue. It’s a net revenue, net of GST.

Teena Virmani — Kotak Securities — Analyst

Got it, got it, sir. Thank you. Thank you so much.

Anil Yadav — Director of Investor Relations

Thank you.

Operator

Thank you, ma’am. [Operator Instructions]

Anil Yadav — Director of Investor Relations

Ma’am, I have got some feedback from some of the analysts who are attending this call. They are saying, the line is very bad. And they are not able to ask their questions. So, if you can check if there is some issue with your end, because some of the analysts has already messaged me stating that.

Operator

All right. Sir. I’ll get that checked the only issue we faced, I think, is with Mr. Mohit Kumar. I am unable to hear him sir. I will get that checked, sir. I’m just promoting the next question in the queue.

Tushar Kawedia — Group Chief Financial Officer

Anil.

Anil Yadav — Director of Investor Relations

Yes.

Tushar Kawedia — Group Chief Financial Officer

Anil, if you can hear me, if you can gather those questions, we may just reply those.

Anil Yadav — Director of Investor Relations

Okay, sir.

Tushar Kawedia — Group Chief Financial Officer

So if those — I mean I understand the line looks to be bad today, but if those analysts have reached out to you and share their questions, then maybe you can just reply on this forum whatever the question was and our answer.

Anil Yadav — Director of Investor Relations

Okay, sir, noted sir.

Operator

Sir should we move ahead to the next question?

Tushar Kawedia — Group Chief Financial Officer

Yes, yes please.

Operator

All right. We take the next question from the line of Mr. Alok Deora from Motilal Oswal. Please go ahead, sir.

Alok Deora — Motilal Oswal — Analyst

Good evening, sir. Am I audible?

Tushar Kawedia — Group Chief Financial Officer

Yes, yes. Very much.

Alok Deora — Motilal Oswal — Analyst

Yeah, so, sir. Just had a couple of questions. One was on the pipe — tender pipeline. So just wanted to understand, how are we seeing the TOT projects now? Because that has been slightly on the slower side, I mean, even if they are going ahead with the awarding then it’s taking time to get the closure done, so just wanted your thoughts on that, because that is also one area which we were targeting quite aggressively.

Tushar Kawedia — Group Chief Financial Officer

So, it seems to be on the slow because they may be wanting to assess the market well and you are right. There has been some scale down on the TOT side and we are also keenly awaiting the clarity on the same.

Alok Deora — Motilal Oswal — Analyst

Sure. So when we are talking about this year order inflow, we are not factoring anything on that?

Tushar Kawedia — Group Chief Financial Officer

No. So the INR5,000 crore to INR7,000 crore per instrument order additions at we will be pursuing will be primarily on BOT and HAM put together.

Alok Deora — Motilal Oswal — Analyst

Sure, sure. And also, sir. Like, if we look at year-to-date till almost October, we — NHAI has awarded nearly 800-kilometer or so of projects, where the target is nearly 6,000 kilometers. So do you think, again the aggression could be quite high in the last three, four months where these other players also have not bagged any significant number of projects, so again the competitive intensity would continue to remain high and just your thoughts on that, sir.

Tushar Kawedia — Group Chief Financial Officer

So our sense is that unlike last year, I mean, this is a phenomena that we have been observing last now almost this will be the third year, where majority of the order activity gets pushed to the second half of the financial year. Similar trend seems to be unfolding this year as well. But one change that has taken place is unlike last year, the pre-qualification now when the big bond security requirement has been built up by NHAI. And our sense is that that should bring in some discipline compared to what the scene was last year. And we will be very carefully evaluating the bidding patterns, because we are very sure that with the order visibility that we have for three years, we are definitely not in a hurry to confirming a project by compromising for the margin.

So we will be carefully evaluating this aspect. And they are bidding for winning project for the sake of bidding it and we would like to see how the scenario unfolds and then we will calibrate our response.

Alok Deora — Motilal Oswal — Analyst

Sure. Just one last question, I’m not sure if this has been answered because the line has been slightly volatile. Just wanted to know this, how many total projects tenders we are looking at or to be floated in this year, because till now there has been no significant tenders from the toll project side?

Tushar Kawedia — Group Chief Financial Officer

So presently, as I said, Ganga, we have now in the closures that part is done. Presently, if I look at, we are evaluating two BOT projects, one is the state BOT, one is the NHAI BOT and we expect at least six to eight more projects to get announced for bidding in the near-future.

Alok Deora — Motilal Oswal — Analyst

Sure sir. Sure. That’s all from my side, and thank you and all the best, sir.

Tushar Kawedia — Group Chief Financial Officer

Thank you.

Anil Yadav — Director of Investor Relations

Sir, there are a couple of questions from the Viral. So —

Tushar Kawedia — Group Chief Financial Officer

Yes. Go ahead.

Anil Yadav — Director of Investor Relations

So he wants to know, hello?

Tushar Kawedia — Group Chief Financial Officer

Go ahead, Anil.

Anil Yadav — Director of Investor Relations

Yeah, in terms of strategy, are we comfortable for the bidding for the project, where VGF comes down to 20%. Second question is, update on pending arbitration award. And third question is why BOT revenue growth is only 7%.

Tushar Kawedia — Group Chief Financial Officer

So I think, first question — I’ll answer the last question first. The BOT, TOT revenue as he is asking I think the answer is 8% overall number growth is inclusive of Bombay-Pune, where there has been no tariff increase. And as you articulated before Ahmedabad-Vadodara has seen almost 13.5% revenue growth, Bombay-Pune has witnessed 10% revenue growth. So there was no tariff hike, so that is majorly contributing from the [Technical Issues] anything on the traffic numbers in fact they looks to be really robust.

In terms of the other point, that you were asking about the VGF for HAM project is going up to 20% I think it would be a welcome move, because our sense is very simple on this whole take higher prices for institutions in whichever format the government comes up with, we will bring in more disciplined bidding and sensible pricing as against higher government funding and lower private participation. Because the moment the private participation goes up, it becomes a very, let’s say, turnover churning exercise we have no skin in the game from any of the bidder. And there is aggression picks up excessively. So, any format, whether it is reduced upfront in HAM or any other format of BOT that that the government devises, higher the private participation, better would be the result in my understanding.

Anil Yadav — Director of Investor Relations

Sir update on arbitration award.

Tushar Kawedia — Group Chief Financial Officer

So on the arbitration award, all of the disputes that we have across various projects, they each of them now have arbitration panel in place and the respective processes are going on in a [indecipherable] manner. So as we had said earlier I think every year we can expect to have some meaningful resultants contributing to the bottom line going forward and so far the progress on this has been very, very encouraging. So, Anil sir, any further question from Viral?

Anil Yadav — Director of Investor Relations

No, no, I think we can ask moderator to move to the next question.

Operator

Sure sir. We take the next question is from the line of Mr. Meet Parikh from Anand Rathi. Please go ahead, sir.

Meet Parikh — Anand Rathi — Analyst

Yeah, thank you for the opportunity, sir. Sir, my first question is regarding the guidance given on the EPC toll — EPC revenue for the year of around INR4,500 crores. Does it include the arbitration, which we received in the last quarter?

Tushar Kawedia — Group Chief Financial Officer

Anil, you want to take it?

Anil Yadav — Director of Investor Relations

Yes, sir. So that is including the arbitration award we have received the last year. Because while factoring for the business for entire year, since this arbitration was already there and once it got converted in the Judicial award when it was confirmed by the High Court, then we have recognized the revenue and it was part of the entire INR5,000 crores plus of revenue what we have projected including GST for this financial year.

Meet Parikh — Anand Rathi — Analyst

Okay, sir. And secondly, my question is on the order book. Can you give project wise breakup for the order book? Order backlog.

Tushar Kawedia — Group Chief Financial Officer

Yes. So on a EPC order book, the balance order book remains at INR8,000 crores — INR8,800 crores and out of which for BOT — for BOT projects the outstanding order book is at INR6,600 crores and around INR2,200 crores is towards the HAM projects.

Meet Parikh — Anand Rathi — Analyst

Okay, sir. Okay.

Anil Yadav — Director of Investor Relations

I think if you’re reconciling the previous order book and this order book, I think we have added the order book of Ganga O&M also, because Ganga is going to be executed on the basis of INR5,149 crores. And the O&M revenue will not get eliminated. And since EPC and O&M is already in place, we have added back O&M order book in our overall order book.

Meet Parikh — Anand Rathi — Analyst

Okay, sir. And sir in the BOT projects of around INR6,600 crores, which you just said, can you give the breakup on which all projects have — there is order book?

Tushar Kawedia — Group Chief Financial Officer

So INR1, 500 crores is — sorry INR5,000 crores is towards Ganga, INR1,500 crores is towards Palsit, and balance remaining for the Private InvIT, that is the smaller amount.

Meet Parikh — Anand Rathi — Analyst

Okay. And on the HAM projects, sir, INR2,200 crores?

Tushar Kawedia — Group Chief Financial Officer

So for HAM projects, those are the three HAM project that is VM7,Chittoor-Thatchur, and Pathankot-Mandi. The breakup for the VM7 is somewhere around INR950 crores odd. For Chittoor-Thatchur, because it’s just commenced, so around INR700 crores. And for Pathankot-Mandi, it’s around INR550 crores.

Meet Parikh — Anand Rathi — Analyst

Okay, thank you so much, sir. Thank you so much.

Operator

Thank you, sir. [Operator Instructions] Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over —

Tushar Kawedia — Group Chief Financial Officer

So would like to wish —

Operator

Sorry to interrupt you, sir. I’m sorry to interrupt, we just got a participant in the queue. Shall we promote the question?

Tushar Kawedia — Group Chief Financial Officer

Yeah. Sure.

Operator

Yeah. We have a question. This is a follow-up question from the line of Mr. Alok Deora. Please go ahead, sir with your question.

Alok Deora — Motilal Oswal — Analyst

Yeah. Thanks for the follow-up. Sir. Just wanted to understand any other projects, which we are looking to transfer to the InvIT in the near to medium-term. So just your thoughts on that?

Tushar Kawedia — Group Chief Financial Officer

Presently, no, because we would be looking more from the HAM project getting transferred to public InvIT. If you look at the private InvIT portfolio that is more of a stabilization phase and none of the HAM projects are likely to quick transferable situation. Although at the sponsor to the public InvIT I think public InvIT management has also made it clear that they have been evaluating standalone third-party opportunity and that exercise would continue is my understanding.

Alok Deora — Motilal Oswal — Analyst

Sure sir. Got it. Thank you so much, sir. Thank you. All the best.

Tushar Kawedia — Group Chief Financial Officer

So any more questions.

Operator

There are no more questions, you can go ahead with your closing comments, Sir.

Tushar Kawedia — Group Chief Financial Officer

Okay. So I would just like to wish all of you a very happy and prosperous New Year and Happy Diwali and thank you for being with us on this call and for your patience. And I apologize for the bad line, which might have caused some irritation at your end and thank you so much. Have a great weekend ahead.

Operator

[Operator Closing Remarks]