J.Kumar Infraprojects Limited (JKIL) Q1 FY23 Earnings Concall Transcript

J.Kumar Infraprojects Limited (NSE:JKIL) Q1 FY23 Earnings Concall dated Aug. 03, 2022

Corporate Participants:

Madan Biyani — Chief Financial Officer

Kamal J. Gupta — Managing Director

Nalin J. Gupta — Managing Director

Analysts:

Krishna Agarwal — Niveshaay — Analyst

Vignesh Iyer — Sequent Investments — Analyst

BMohit Kumar — DAM Capital — Analyst

Bhavik Shah — MK Ventures — Analyst

Alok Deora — Motilal Oswal — Analyst

Vipul Kumar Shah — Sumangal Investments — Analyst

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Shravan Shah — Dolat Capital — Analyst

Parvez Akhtar — Edelweiss Securities — Analyst

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Q1 FY ’23 Earnings Conference Call, hosted by Anand Rathi Share and Stock Brokers. 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 Mr. Meet Parikh. Thank you, and over to you, sir.

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Thank you, Seema. On behalf of Anand Rathi Shares and Stock Brokers, I welcome everyone to the Q1 FY ’23 earnings call for J. Kumar Infraprojects Limited.

From the management side, we have Mr. Kamal Gupta, Managing Director; Dr. Nalin Gupta, Managing Director; Mr. Madan Biyani, CFO; and Mr. Arvind Gupta, VP, Taxation. We will start with the opening remarks from the management regarding the industry results post which we will open up for an interactive Q&A.

Over to you, sir.

Kamal J. Gupta — Managing Director

Yeah. Good afternoon, everyone. This is Kamal Gupta. On behalf of J. Kumar, I welcome everyone to the Q1 FY ’23 earnings call of the Company. Joining me on this is Mr. Nalin Gupta, MD; Mr. Madan Biyani, CFO; Mr. Arvind Gupta, VP, Taxation; and our IR team. I hope everyone had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our Company’s website.

Before I begin the overview, a brief disclaimer, the presentation which we have uploaded on the stock exchange and our website, including the discussion during this call contains certain forward-looking statements concerning J. Kumar Infraprojects’ business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements.

Well, we are expecting to deliver another quarter of healthy performance of J. Kumar with stable operating margins and debt level. We are witnessing strong execution momentum across all our projects and our focus to create value for all of our stakeholders. We are witnessing pickup in new projects awarding. FY ’23 has started on a positive note with projects awarded to the tune of INR1,374 crores this fiscal year.

Some key updates. We’re awarded project from Ircon amounting to INR1,068 crores, excluding GST in Q1 of FY ’23. This is part of the Delhi-Mumbai corridor. It starts from Vadodara to JNPT, package 17. The total project length is 9.8 kilometers, wherein 4.2 kilometer is a tunnel portion. It’s a four plus four, eight-lane access-controlled highway with twin tube of tunnels.

The second project which was awarded to us is a sewage tunnel project in Mumbai by BMC from Don Bosco to Malad, amounting to INR510 crores, excluding GST, which is in JV wherein J. Kumar share is INR306 crores in Q2 of FY ’23 this year.

Coming to the financial highlights of Q1 FY ’23. The revenue from operations for Q1 FY ’23 grew by 47% to INR994 crores as compared to INR675 crores in the preceding year of Q1 FY ’22. The operating margin EBITDA for Q1 FY ’23 stood at INR140 crores as compared to INR97 crores in Q1 of the preceding year. EBITDA margin stands at 14.1%. The PAT for Q1 FY ’23 has gone up by 93% to INR62 crores as compared to INR32 crores of Q1 FY ’22. PAT margin for Q1 stood at 6.2% as compared to 4.8% in the preceding year.

The Company continued its focus on working capital management and good quality of work and good order book. Our total order book as on 30th June ’22 stands at INR12,095 crores. The order book entirely includes metro projects contributing almost 57%, while flyover projects and road projects contributes to around 35%. We remain optimistic on Indian recovery amidst the continuing global geopolitical uncertainty.

Before taking the question/answers, I would like to repeat the vision of the Company. J. Kumar’s vision is to be a $1 billion revenue company by year ’27, and we expect our order book to go about INR20,000 crores by ’27. With strong financial and technical merits, we envisage becoming $1 billion revenue company by ’27. Of course, our endeavor is to reduce gross debt level in medium term. Objective is to continuously improve shareholders’ return ratio by investing in people, technology and process.

Thank you so much. Now I leave it for the question and answers, please.

Questions and Answers:

 

Operator

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

Mohit Kumar — DAM Capital — Analyst

Yeah. Good evening, sir, and congratulation on a fantastic set of numbers. Sir, my first question is, given the stupendous revenue give the high — given the high growth in the first quarter, is there any upside just to our guidance in the sense you have given 15% guidance, it’s come to $40 billion for the entire year? Do you think the numbers can be revised upwards?

Kamal J. Gupta — Managing Director

So, hi, Mohit. Of course, I will be always believing giving a conservative figure. But like Q2, of course, is sluggish because of rain, as you know. And we feel like in July, we had very good rain. So our figure was INR2,000 crores as on — for the coming fiscal year, like ’23, thanks to be good. And if you are able to get a better output, we are ready for that. And like this year — quarter, we could do better than [Indecipherable]. So we believe giving a conservative figure.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. So it’s in the upside, but yeah. Sir, my second question is on the — of course, clearly the EBITDA margin were steady at 14.3%. Do you think — what was the impact of inflation during this quarter? And do you think using inflation scenario environment to make it easier for us to have a better margin in the next three quarters? Or do you think our margins are neutral to the inflation?

Kamal J. Gupta — Managing Director

So, if you are aware, Mohit, like last couple of quarters, the rate of all commodities have really gone up, shot up to the sky, okay? So because of that also, there was no impact on the bottom line. And there’s like some drop also, there won’t be any impact on the bottom line since all of our projects are covered with price escalation variation clause. So we are a full line like sure that we’ll be able to maintain this 14%, 15% EBITDA margin, what we have given guidance.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Lastly, sir, how is the order environment outlook, especially in metro and in Mumbai area, Virar area for the next eight months? Where is GMLR, the project right now? Do you think it can get awarded in the system?

Nalin J. Gupta — Managing Director

On metro sector — hi, Mohit, this is Nalin here. So metro, there is huge opportunity that we are seeing all across the country. And currently also in Bombay, also, package 10, 11, 12 and also package 13, there are three to four packages which has been already approved in VPR and also the GC tenders have been — the price feed has been opened. So it is very likely that in next three months to four months, we should be seeing new Bombay metro tenders coming up.

Again, if you talk of Chennai, there are six packages. Again, Kanpur is coming up with new packages. Delhi is coming up with new packages. So — and again, these are the 13 cities where metro is operating as of now, but there would be — it could shoot up to 25 cities. So metro has been accepted as one of the most economic and the fastest mode of transport as the mass transport system. The government has understood the importance of it, and that’s the only way how traffic can be controlled.

So this has been taken up in all the cities, and there is a huge opportunity for metro projects all across the country in coming next five years more to go. And with regard to GMLR, we have already submitted the RFQ for both the packages. And we expect that in the next couple of months, we should be able to submit the RFQ. So because of the change in government and all certain things have been kept on hold, but it should be moving fast now I think.

Mohit Kumar — DAM Capital — Analyst

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

Nalin J. Gupta — Managing Director

Thank you.

Operator

Thank you very much, sir. We take the next question from the line of Krishna Agarwal from Niveshaay. Please go ahead.

Krishna Agarwal — Niveshaay — Analyst

Sir, my first question is regarding — as we mentioned that we are the only company having the maximum number of TBMS. Sir, I wanted to understand what kind of cost advantage we have because of our fleet of TBMs as in percentage terms?

Kamal J. Gupta — Managing Director

Excuse me. Sorry, Krishna, we are not able to get you. Can you be more clear, please? You are not properly audible.

Krishna Agarwal — Niveshaay — Analyst

Hello?

Kamal J. Gupta — Managing Director

Yeah. Yeah, please go ahead.

Krishna Agarwal — Niveshaay — Analyst

Yeah. Am I audible now?

Kamal J. Gupta — Managing Director

Yes, very much.

Krishna Agarwal — Niveshaay — Analyst

Yeah. So my first question is that we mentioned that we have the largest fleet of TBMs. So I wanted to understand what kind of cost advantage do we have over there in percentage terms? And what are — who are the next players who have the maximum number of TBMs out there, like you have seven TBMs, so who are next players who have five TBMs?

Secondly, I wanted to understand that what is the demand scenario in other that is road and expressway projects? These are my second question — two questions.

Kamal J. Gupta — Managing Director

Okay. So Krishna, like, as you told, we have seven TBMs of our own, and we feel we are getting one more. So we hopefully will be the only contractors in India who has an extra number of TBMs. And also, Afcons they also have these number of machines, but our machines are mainly new machines that we have bought. So J. Kumar and Afcons we are two people in the country who have such number of fleets with tunnel boring machines.

And coming to the competency, like, of course, when you have your own equipment, like and once you have utilized it in a previous project, so that comes like a very nominal cost for the other projects. So you have a niche over others in bidding and as well as maintaining your bottom line because the machine has already been amortized on the earlier projects. So the refurbishment cost is the main cost that we incur on it. So that’s how we have an upper end over winning the space. Anything else, Krishna?

Krishna Agarwal — Niveshaay — Analyst

That’s it from my side. Thank you.

Kamal J. Gupta — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] We’ll take the next question from the line of Vignesh Iyer from Sequent Investments. Please go ahead, sir.

Vignesh Iyer — Sequent Investments — Analyst

Congratulations on good set of numbers. I just wanted to ask after in case of Mumbai Metro, after the metro sector at Aarey has been cleared for construction, what is the movement when it comes to the new tenders floated for the other metros and what is our participation ratio when it comes to these new tenders?

Kamal J. Gupta — Managing Director

So, if you talk of Aarey metro station, Aarey depot, that was a specific depot only dedicated to Line 3. And all the other packages related to line three has already been floated and the work is on advanced stage of completion, like J. Kumar we have two packages and 85% work has already been completed of our two packages. So by December 2023 is what we expect that all the civil works should be over and this would be only related to metro Line 3.

And when you talk of other packages, they all have their different depots in different vicinities. So most like two and seven, they have a different depot at Malvani again Line 2b has a depot at Mankhurd. So there are different depots. So Aarey has nothing to do with the other metro lines. And as we already mentioned that there are around four metro lines, metro Line 5, there is the underground section which is coming up. Metro line 10, 11, 12, 13, so there are altogether five lines which will be seeing the pending process to happen in a couple of months from now.

Vignesh Iyer — Sequent Investments — Analyst

Okay. It was more like after the current government coming up, is there any escalation when it comes to the metro project? That was my point of view to ask as an overall.

Kamal J. Gupta — Managing Director

If you look at metro Line 3, as soon as the government — new government came in, you can see the acceleration at Aarey depot and also the other metro lines has been told to be given full pay and whatever clearances are there, they have been given a good push. So the clearances are happening better. The government is pro to metro, so we are seeing that the operations are getting smoother.

Vignesh Iyer — Sequent Investments — Analyst

Okay. Yeah. Right. Also coming to the margin part of our business, so if you could see that pre-COVID level, we were consistently hitting around 16% margins for a few years, even 18% at times. And so I just want to know, what is the Company’s outlook on it? Can we get back to those levels because we are seeing good amount of traction when it comes to topline? So just if you could give us an idea because we have pre-COVID consistently maintained around 16% for two, three years?

Kamal J. Gupta — Managing Director

We have been giving you guidance of around 14% to 15% for our EBITDA margins. And if you look at the EBITDA that the Company has been making for last couple of years, it has been in the band of 14% to 15% only. So we have never given guidance for 18%. And as the baseline — as the base increases, then your company keeps growing. Still to maintain EBITDA of 14% to 15%, I think, is a good set of numbers that the Company is targeting, and we are able to achieve. So I would say that 14% to 15% is the guidance that we should be looking at.

Vignesh Iyer — Sequent Investments — Analyst

Okay. Okay. Okay.

Kamal J. Gupta — Managing Director

We just hope for improvement and we always strive for achieving the same. But to have a fair idea and to give a fair guidance, we would say 14% to 15% is a fair number.

Vignesh Iyer — Sequent Investments — Analyst

Okay. Okay. Fine. And coming to this projects like non-metro projects that gets offered, just wanted to know in general, what is — is there any price variation as part of the contract because the prices of the raw material has been fluctuating a lot in past one year? So just wanted to know what is the idea then.

Nalin J. Gupta — Managing Director

So, Vignesh, whether it is metro or non-metro, the situation is same. So all of our projects — 100% of our projects are covered with the price escalation variation clause. Okay. And these are linked with the RBI indexes. If the commodity price goes up, the RBI index goes up. If the commodity prices go down, the RBI index goes down. So whether it is cement, steel, fuel, labor, C&M, or other commodities, it’s all are linked because of price escalation clause. So any increase or decrease does not hit our bottom line. So whether it is metro or non-metro projects.

Vignesh Iyer — Sequent Investments — Analyst

Okay. Okay, yeah. Got it. Got it. All the best, sir, and that’s all from my side. Thank you.

Nalin J. Gupta — Managing Director

Thank you so much, Vignesh.

Operator

Thank you, sir. We take the next question from the line of [Speech Overlap]…

Kamal J. Gupta — Managing Director

Hello?

Operator

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

Bhavik Shah — MK Ventures — Analyst

Hello. Thanks for the opportunity. Sir, I just wanted to understand the margin profiles of the two orders that we have received, the expressway project and the sewage project. And like how is it different from one another? Which one has better margins?

Kamal J. Gupta — Managing Director

So, Bhavik, of course, like we don’t work without a bottom line, so our focus is always a profitable growth and not on the topline. As you must be seeing our previous history also, so both these projects have been secured 14% to 15% operating margins. And we are sure like till the time it comes, it may go a percent up or down, but it has been secured 14%, 15% margins both the projects.

Bhavik Shah — MK Ventures — Analyst

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

Kamal J. Gupta — Managing Director

And both are USP jobs of specialized operations. Let it be this dual blast tunnel of road works or we talk of the PST tunnel which is a smaller dia TBM with segment lining, so both are specialized jobs.

Bhavik Shah — MK Ventures — Analyst

Right. Right, sir. Thank you.

Operator

Thank you, sir. We take the next question from the line of Alok Deora from Motilal Oswal. Please go ahead, sir.

Alok Deora — Motilal Oswal — Analyst

Good afternoon, sir. Just a couple of questions. Sir, what is the order inflow target we have for this year? Actually I missed that number in case…

Kamal J. Gupta — Managing Director

Yeah. So, Alok, we have — like, last year we had order inflow of 4,000 — sorry, INR3,670 crores, and this year — this fiscal itself we had inflow of INR1,375 crores. And we are targeting around INR5,000 crores inflow for this current fiscal 2023, thereby maintaining our INR12,000 crores to INR13,000 crores of order book always.

Alok Deora — Motilal Oswal — Analyst

Right, right. And also, sir, this expressway project of which you have won in 1Q, this has been won by Ircon, I think on the HAM basis right?

Kamal J. Gupta — Managing Director

You are right, Alok. This project has been taken by Ircon from NHAI on HAM basis.

Nalin J. Gupta — Managing Director

We are the main contractor for it. They are the developer and we are the main contractor.

Alok Deora — Motilal Oswal — Analyst

Got it. Got it. So does that mean this will start after like eight months, 10 months, because typically — because I think it is awarded to them in May or sometime that time. So it will take its own financial closure and appointed date and all those eight, 10 months will go in there?

Kamal J. Gupta — Managing Director

Yeah. You’re right, like initial six months are usually taken for that, so we are expecting the appointed date from first of October in this, but we already started the work there. We have started our survey, mobilization and all are already started. So we save that much time and probably we are looking for bonus in that project. So we want to do some work before the appointed date.

Alok Deora — Motilal Oswal — Analyst

Sure. And this — what is the timeline for this?

Kamal J. Gupta — Managing Director

This is for 36 months. The project timeline is 36 months.

Alok Deora — Motilal Oswal — Analyst

Okay. Okay. Okay. And also — I just also wanted to understand, so these projects, if we look at some other players, they are making if it is a pure EPC project, the margins are typically in the range of 10% to 12% at best. So just wanted to understand what kind of margins we are looking at from this particular project.

Kamal J. Gupta — Managing Director

We have safe secured margins, when we bid it for 14% to 15% operating margin obviously, Alok.

Alok Deora — Motilal Oswal — Analyst

Okay. In this also we will be able to make that kind of…

Kamal J. Gupta — Managing Director

Nothing less. Nothing less.

Alok Deora — Motilal Oswal — Analyst

Okay. Okay. Okay. I think that’s from my side. And just one last question, if I may. So any more — these kind of projects we are looking to back in the near to medium term? I mean, the order inflow which we are giving that’s primarily targeted in the need — apart from metro, are we targeting any other key segment like roads?

Kamal J. Gupta — Managing Director

So this — if you see, both the orders are from two different verticals what we have been usually doing apart from metro, bridges, flyovers and buildings. So these are big tunnel projects by NATM, this is new vertical what we have entered. Even the second project is a sewage treatment — sewage water tunnel. So like these are the new segments and are we — going forward also we will of course focus on these segments as well, whereby adding up our order book and revenue.

Nalin J. Gupta — Managing Director

And also we have backed the order of Pune river front, that’s again a new vertical which the company has started. So there are a lot of riverfront development works that is happening in Gujarat and in Maharashtra, and there are further similar riverfront work which are going to come up in Pune city itself. So these are the new verticals. So we do not intend to basically forget to divert majorly from our prime sector of transportation which itself initially of expertise of elevated underground metros and bigger size of flyovers and road projects of NHAI.

Operator

Sorry to interrupt, sir. It seems that the line of Mr. Bhavik has just got dropped. Okay, we take the next question from the line of Mr. Vipul Kumar Shah from Sumangal Investments. Please go ahead, sir.

Vipul Kumar Shah — Sumangal Investments — Analyst

Hi, sir. Congratulations for a good set of numbers. My question is on the strength of our balance sheet, what can be the maximum size of our order book? Can we reach INR20,000 crores of order book on this balance sheet size or our balance sheet is preventing us from bidding higher quantity projects?

Kamal J. Gupta — Managing Director

So, Mr. Vipul, right now the balance sheet and the capacity or the financial status of J. Kumar entitles us to go up to INR20,000 crores also without any limitations. However, it totally depends upon the nature of work if what type of capex or what type or new types of works are in the geography we are taking up the work. But with the given scenario, the shooting of the order book up to INR20,000 crores also without — with the same balance sheet, we should be very much comfortable.

Vipul Kumar Shah — Sumangal Investments — Analyst

Okay. And, sir, are the margin different for road and flyover segments and metro segments or margins are almost the same across all the segments?

Kamal J. Gupta — Managing Director

So, we do not take much of road works alone. So roads are part of the major structure works, like we are doing this Dwarka Expressway which is almost INR3,000 crores of project, and where in the road component is only 10% or 12%. So of course road is there, but we do not do only road right. Coming to the…

Nalin J. Gupta — Managing Director

JNPT is also similar. If you look at our JNPT which is a project of more than INR1,500 crores, there also it is a combination of concrete [Indecipherable]. Again it’s not a normal CQC but with a sleet on the paver. And along with a big interchange, cloverleaf flyover, so those sorts of works are not everyone’s baby to execute. All the agencies who are doing road work cannot do such type of flyovers. So whenever structure is involved, we try to pick up those types of works.

Kamal J. Gupta — Managing Director

So coming to the margins of whether it is a metro or flyover or tunnel, the margin like what we quote is basically what you quote and get the work, like what is your working. So we don’t anything, any projects without 14% or 15% of EBITDA margin. So all our projects of this mix is always secured 14% to 15% margin.

Vipul Kumar Shah — Sumangal Investments — Analyst

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

Kamal J. Gupta — Managing Director

Yeah. Thank you, Vipul.

Operator

Thank you very much. We take the next question from the line of Panjul Agrawal from GreenPortfolio Private Limited. Please go ahead.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

There is a reduction of around 55% in administrative and other expenses in this quarter with compared to previous quarters. So could you please throw some light on the reasons?

Kamal J. Gupta — Managing Director

One sec, Panjul. So, Mr. Madan, our CFO is replying.

Madan Biyani — Chief Financial Officer

Yeah. Hi. This is because in this quarter that we have regrouped our expenses into construction expenses and other expenses. So now other expenses become just administrative nature and construction expenses, mainly services, which are required for our construction project. So this is for a better presentation of our P&L.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

If I do understand, I am talking about the numbers presented, like we have also restated the numbers for the previous quarter, right? So…

Madan Biyani — Chief Financial Officer

Yeah. We have regrouped all the quarters to make them comparable.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

And sir, [Technical Issues] to INR995 lakhs in this quarter?

Kamal J. Gupta — Managing Director

Which number are you talking about INR995 lakhs?

Madan Biyani — Chief Financial Officer

Yeah. Panjul, you are referring the results?

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Yeah.

Madan Biyani — Chief Financial Officer

[Indecipherable] that is INR9.95 crores, administrative and other expenses. Yeah. So earlier that was INR104 crores of construction expenses, plus INR9 crores expenses. Earlier it was INR115 crores, now it has been split into two items, construction expenses and other expenses, and similarly for all the previous quarters and years.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Yes, sir. What I am saying is if we compare the administrative and other expenses for the quarter ending 31st March, it is around INR2,200 lakhs, and for the quarter ending 30th June, it is INR995 lakhs. So there is a drop of 65%, that is quite substantial.

Kamal J. Gupta — Managing Director

Yeah. So, if you look up, there is one important thing that I would like to highlight here, that it — also there is a total cost of INR100 crores. So out of INR100 crores, if you see the material component, a material component has gone up a little bit higher as compared to the administrative and other expenses. So in certain quarters you can see the material going up and the administrative cost and other expenses going down depending upon whether more materials is consumed or it is more of less labor — material oriented or less — more material oriented.

So that percentage changes and still the — 100% still remains the same. So here the material component has grown up and the other component has still remained on the lower side.

Madan Biyani — Chief Financial Officer

So, if you see, Panjul, like, quarter ending June 30, 2021 the administrative expenses were only INR12 cores. On a quarter-on-quarter, there have been slight changes and overall it is around INR64 crores for the year-end.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Okay. Can you give me advanced retention money and unbilled revenue for this quarter?

Kamal J. Gupta — Managing Director

Yes. You want mobilization advance, unbilled revenue.

Madan Biyani — Chief Financial Officer

INR557 crores is the mobilization advance.

Kamal J. Gupta — Managing Director

INR557 crores is the mobilization advance, today.

Madan Biyani — Chief Financial Officer

And unbilled revenue is INR545 crores.

Kamal J. Gupta — Managing Director

INR545 crores is the unbilled revenue, madam. Is that good?

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Sorry.

Kamal J. Gupta — Managing Director

Yeah, Panjul. Can you hear?

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

I can hear you. So, the retention money amount?

Madan Biyani — Chief Financial Officer

This is INR220 crores.

Kamal J. Gupta — Managing Director

INR220 crores.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Okay. So, one last question. Could you please share me the details of some slow-moving projects like which are there for like over four years now?

Kamal J. Gupta — Managing Director

Come back, sorry. Can you come back, madam?

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Sir, any slow-moving projects which are ongoing for over four years now?

Kamal J. Gupta — Managing Director

No. None of the projects which are going from four years, like of course this metro Line 3 which is 85% completed, the contract period was only 4.5 years, so it is of course more than four years and we are planning to complete it by next year. So there is no project which is slow moving apart from one project of CIDCO coastal road, of course, which was waiting for the environmental clearance, but that is like INR480 crores only. So that is the project which is yet to start, rest all projects are going in full swing madam.

Nalin J. Gupta — Managing Director

So, there is — the tenure may be more than four years for execution because we are working in urban areas, but that is not slow moving.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

Okay. Sir, when can we expect this CIDCO coastal project to start like, it is not yet started?

Kamal J. Gupta — Managing Director

So, we are expecting this to start by November — like mid of October in this year.

Panjul Agrawal — GreenPortfolio Private Limited — Analyst

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

Kamal J. Gupta — Managing Director

Thank you so much, Panjul.

Operator

Thank you, ma’am. We take the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.

Shravan Shah — Dolat Capital — Analyst

Thank you, sir. First of all, congratulations on a robust performance. Before asking the questions, I just wanted a clarification. Does our order book till the third quarter of FY ’22 was inclusive of GST, so whatever the numbers we have said in the presentation also the second last page that is the 42 number page, so till FY ’18, ’19, ’20, ’21, all these order book numbers were inclusive of GST?

Kamal J. Gupta — Managing Director

No Shravan. These all projects were excluding GST.

Nalin J. Gupta — Managing Director

Earlier the numbers that we were sharing was with the GST, but currently the numbers that we have given for March is excluding GST. And even the number for — FY ’23 number of INR1,375 crores of order books that we are talking of it is also again without GST. Order book of INR1,295 crores and this INR1,375 crores order that we are speaking of financial year ’23 order is…

Shravan Shah — Dolat Capital — Analyst

Sorry, sir. I — hello?

Nalin J. Gupta — Managing Director

Hello?

Kamal J. Gupta — Managing Director

Yeah. Shravan, you can speak. Hello?

Operator

He just got dropped off, sir.

Kamal J. Gupta — Managing Director

Okay. So we can take the next question, please.

Operator

Sure. We take the next question from the line of Parvez Akhtar from Edelweiss Securities. Please go ahead, sir.

Parvez Akhtar — Edelweiss Securities — Analyst

Hi. Thanks for taking my question. Sir, couple of questions from my side. First, could be great if you can give us some updates about some of our major projects like you already mentioned about Line 3, it is 85% completed. And if you could tell us about some of the other metro lines that we are doing in Mumbai, like Line 2, Line 9, Line 6, and also the Pune and the Surat metro projects?

Kamal J. Gupta — Managing Director

Yeah. So, Parvez, if you talk of Line 2A, that’s around 99% completed from our side. So it’s only the other ancillary works from various electrical and the traction people who are doing the job, and it should be put into operation by say around November. And if you talk of 2b, we have already completed 12%, 85% is Line 3, Line 4 is around 42% completed, Line 6 is around 60%, Line 7 is around 97% and Line 9 has been completed by around 24%. This Pune metro we have already completed around 80% and Surat metro, it is around 4%.

Parvez Akhtar — Edelweiss Securities — Analyst

Okay, great. And when do we expect work to start…

Kamal J. Gupta — Managing Director

Work to?

Parvez Akhtar — Edelweiss Securities — Analyst

We are sorry, Parvez. I think you’re line got dropped.

Operator

Hello. Yes, sir. His line got dropped off.

Kamal J. Gupta — Managing Director

Some issues with the network. You can connect him back?

Operator

Sure, sir. I’ll get him. I am promoting the next question, sir. This is from the line of Mohit Kumar from DAM Capital. Please go ahead, Mr. Kumar.

Mohit Kumar — DAM Capital — Analyst

Hi, sir. One clarification. Sir, you have this contract with Ircon, under this EPC agreement, this is like a proper price variation escalation clause or it is a fixed price? Or there is only partial variation? Because given the HAM contract, I am asking this now, this question.

Kamal J. Gupta — Managing Director

Yeah. So, this is like absolutely EPC contract what we do with NHAI, it is on the same terms and conditions with all price escalation clauses, bonus, everything, so there is no change in the document what we do with the NHAI. Absolutely the same document, same content. It is EPC contract with all the conditions similar to what is there in NHAI.

Mohit Kumar — DAM Capital — Analyst

If I am not wrong, I think Ircon had couple of more contracts open. Are we still interested in those particular contracts also or do…

Kamal J. Gupta — Managing Director

If it is of our choice, like of our niche area, of course we will go for it.

Mohit Kumar — DAM Capital — Analyst

Understood. So there is nothing open at this point of time, nothing under consideration, is the right understanding?

Kamal J. Gupta — Managing Director

Right now, nothing we are quoting with them, like any contract comes off our size and our liking of course we will go for it.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you.

Kamal J. Gupta — Managing Director

Thank you.

Operator

Thank you, sir. [Operator Instructions] We’ll take the follow-up question from the line of Parvez Akhtar from Edelweiss Securities. Please go ahead, sir.

Parvez Akhtar — Edelweiss Securities — Analyst

Hi. Thanks for the follow-up. Just two data points that I needed. One is, what is the cash and bank balance that we have including FDR? And second is, what is the capex that we have done in Q1 and what is our target for the full year? Thank you.

Kamal J. Gupta — Managing Director

For the capex, Parvez, we were targeting around INR100 crores to INR125 crores that we had mentioned, but we would like to revise it to INR125 crores to INR150 crores for this year, which will be basically due to the addition of the eight TBMs that we wanted for Delhi metro looking at the geological strata that we are facing there. And for the — till now, for Q1, we have done around — INR31 crores is what we have done for Q1 and we expect around INR125 crores to INR150 crores for capex at the annual level. And with regards to the numbers, you can say that.

Madan Biyani — Chief Financial Officer

The cash and bank balances stand at total INR139 crores as of the quarter-end, including the escrow accounts and other bank balance. And FDR and fixed deposits stand at INR384 crores as at the quarter-end.

Parvez Akhtar — Edelweiss Securities — Analyst

Thanks, and all the best.

Kamal J. Gupta — Managing Director

Thank you, Parvez.

Operator

Thank you, sir. [Operator Instructions] We’ll take the next question from the line of Krishna Agarwal from Niveshaay. Please go ahead.

Krishna Agarwal — Niveshaay — Analyst

Sir, number [Indecipherable], what is the execution period of our current order book? And second is a clarification, why our sales degrowth Q-o-Q like it has been degrown 10% and 11%, is that a nature of our business?

Kamal J. Gupta — Managing Director

Sorry, Krishna. The second question is not understood.

Krishna Agarwal — Niveshaay — Analyst

Hello?

Kamal J. Gupta — Managing Director

Yeah. Please go ahead with the second question, ma’am.

Krishna Agarwal — Niveshaay — Analyst

My second question is, what was the revenue to fall Q-o-Q, like it has fallen 11%? Is that the nature of the industry, like in Q1 it usually goes down or what?

Kamal J. Gupta — Managing Director

So, coming to your second question first is, I think you are asking why the Q1 is going down, right?

Krishna Agarwal — Niveshaay — Analyst

Q1 — Q4 and Q1 comparison. Like Q4 has…

Kamal J. Gupta — Managing Director

Q4 is always the best in the industry, like that is a fourth quarter. And Q1 is also good, no doubt. And like Q2 will be sluggish and Q3 will be better than Q2. Well, so, Q1 and Q3 can be considered almost the same. You want the figures for Q4 and Q1?

Nalin J. Gupta — Managing Director

No, why it’s…

Krishna Agarwal — Niveshaay — Analyst

What? I am sorry.

Kamal J. Gupta — Managing Director

If you are asking why there — about the numbers, like Q2 is the worst quarter of the year for any infra company.

Nalin J. Gupta — Managing Director

And Q1 also, the range starts, we are working in the urban area and there is slight like, the labors go for the farming and all just before the — in Q1. Q1 is slightly lesser than the Q4 always.

Krishna Agarwal — Niveshaay — Analyst

And what is the order book execution period, sir?

Nalin J. Gupta — Managing Director

That is — our current order book of INR12,000 crore, the execution period is around three years.

Madan Biyani — Chief Financial Officer

Three to four years is average period, you can say.

Krishna Agarwal — Niveshaay — Analyst

Okay.

Nalin J. Gupta — Managing Director

Any other questions, Krishna?

Operator

Krishna, is your question answered.

Krishna Agarwal — Niveshaay — Analyst

Yeah. Thank you.

Operator

Thank you, ma’am. We take the next question from the line of Meet Parikh from Anand Rathi. Please go ahead, sir.

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Yeah. Thank you for the opportunity, sir. I had a few questions. Firstly, on the water projects in terms of now that we have secured this sewage project at Mumbai, do you look at other opportunities? Which are other opportunities are we looking at? And any near-term opportunities that we are going to bid for? So on that, if you can highlight some points?

Kamal J. Gupta — Managing Director

So, there is — like for the water treatment, there are WTPs and STPs both that we are targeting, like Surat has come up with an STP project of around INR800 crores and there are water pipeline projects that have come up under the Pradhan Mantri Jan Yojana. So in that, like UP, MP, all these states have huge packages that is coming up for end-to-end pipeline projects for which we are targeting. And also WTP and STP currently that we are focusing is already existing and PST which is sewerage projects that also we have already backed two packages.

One was for Mithi and the other was for the Dharavi project or the Malad project. So there are similar types of projects also expected again from Mumbai Municipal Corporation and Pune. So we are trying to focus on that as well.

Nalin J. Gupta — Managing Director

Also, CIDCO is coming out with these water tunnels, so we are focusing on that as well. So maybe like in another three months to six months, we will quote for the tender.

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Sir, what will be the size of this CIDCO project?

Nalin J. Gupta — Managing Director

It will be around INR500 crores to INR100 crores each.

Kamal J. Gupta — Managing Director

Around INR1,000 crores to INR1,100 crores, we are coming up with two packages.

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Okay, sir. Thank you so much.

Nalin J. Gupta — Managing Director

Thank you.

Operator

Thank you, sir. We’ll take the next question from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead, sir.

Vipul Kumar Shah — Sumangal Investments — Analyst

Hi, sir. So, we have seven TBMs, so just trying to understand why we have ordered one more, we could have shifted TBM to the Delhi site. So just trying to understand that.

Nalin J. Gupta — Managing Director

So, the geology of Delhi, we are — it requires four tunnel boring machines out of which we have utilized three — two machines we are taking from — three machines we are taking from Mumbai and Delhi projects, and one machine which is like we have three [Indecipherable]. So right now, for usage we have already seven machines already been assigned, out of which two is working for Surat, two is working for Mumbai.

So Mumbai, what we are using is the EPB machine and Surat is again EPVs. And we have one machine which is left out as the rock machine and we require EPV machine in Delhi again. So two machines we could utilize from the existing and one we had to — we had no other option because the stretch between Vasant Kunj to Kishangarh is having a varied type of strata ranging from EPB machine requirement which is for soil, two open type of TBM which is for rock. So we had no other choice but to get one machine new brand and this strata over there is very — encounter the hard strata is very, very hard. So we had to go for the new TBM for that location.

Kamal J. Gupta — Managing Director

So, Vipul, like we are already utilizing all our seven TBMs, plus we require this one additional. So it’s not that we are not utilizing our additional — all the TBMs — existing TBMs are put to use and then this is additional requirement.

Vipul Kumar Shah — Sumangal Investments — Analyst

Okay, sir. Thank you.

Operator

Thank you, sir. [Operator Instructions] We’ll take the next follow-up question from the line of Shravan Shah from Dolat Capital. Please go ahead, sir.

Shravan Shah — Dolat Capital — Analyst

Sorry, sir, previously my line got disconnected. So just continuing the same question. So, till third quarter of FY ’22, we used to report order book inclusive of GST. And from the fourth quarter, we started reporting exclusive of GST. Is the understanding, right?

Kamal J. Gupta — Managing Director

You’re right, Shravan.

Shravan Shah — Dolat Capital — Analyst

So, is it possible to restate the FY ’21, 2019 order book number exclusive of GST just to make sure the one has the better the comparison?

Nalin J. Gupta — Managing Director

We really feel it will make any difference because right now the current order book that we need to talk about the current order book, which is already reinstated without GST. So now you have the net of figures without GST for — at June 30, 2022 level. So earlier figures I do not think we do not have the numbers though, but we can do if you want. But I do not think it would make any difference to the current order book status that we have given excluding GST.

Kamal J. Gupta — Managing Director

And we will ask Mr. Madan Biyani, he will give you the details. No problem.

Shravan Shah — Dolat Capital — Analyst

Okay. And then second, in this quarter, how much change in scope or increase in scope that we have taken in the order book?

Nalin J. Gupta — Managing Director

Nothing. The current — INR1,875 crores order book that we are mentioning that we have backed in FY ’23 is not including any of the variations, it is purely for the two new contracts.

Shravan Shah — Dolat Capital — Analyst

No, I am talking about the existing total order book INR12,000-odd-crore that we have. So in that — in this quarter, have we taken any price increase?

Kamal J. Gupta — Managing Director

You are talking about some variation what we get additionally…

Shravan Shah — Dolat Capital — Analyst

Yeah. Yeah. So increase in scope of what because of the price variation?

Kamal J. Gupta — Managing Director

We do add, like, the total in the last quarter probably year-end, for the whole year. Yeah.

Shravan Shah — Dolat Capital — Analyst

Okay. I need couple of balance sheet numbers, sir. For — what is the inventory data and trade payable as on June?

Madan Biyani — Chief Financial Officer

Inventory is INR369 crores and trade payable is INR524 crores.

Shravan Shah — Dolat Capital — Analyst

And debtors’ trade receivable?

Madan Biyani — Chief Financial Officer

INR907 crores.

Shravan Shah — Dolat Capital — Analyst

INR997 crores. Okay.

Kamal J. Gupta — Managing Director

INR907 crores.

Shravan Shah — Dolat Capital — Analyst

INR907 crores?

Kamal J. Gupta — Managing Director

Yeah.

Shravan Shah — Dolat Capital — Analyst

Okay. INR907 crores.

Kamal J. Gupta — Managing Director

Thank you, Shravan.

Shravan Shah — Dolat Capital — Analyst

Sir — okay. Sir, lastly in terms of just on the broader bid pipeline. So, two things. One, have we bided any projects where outcome price would have been submitted where the outcome is yet to come?

Kamal J. Gupta — Managing Director

It is in the process. We are in the process of bidding around INR30,000 crores of projects all over India. But like there are no projects which the outcomes are there, it is on the process of submission. So probably after the next quarter, we may…

Nalin J. Gupta — Managing Director

We have submitted the RFQ for INR6,000 crores of GMLR.

Shravan Shah — Dolat Capital — Analyst

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

Nalin J. Gupta — Managing Director

Thank you.

Operator

Thank you, sir. Ladies and gentlemen, that was the last question for the day. I hand the conference over to the management for closing comments. Thank you and over to you, sir.

Kamal J. Gupta — Managing Director

Well, I would like to thank once again to all of you for joining us on this call today. We hope we have been able to answer your queries. Please feel free to reach out to our CFO or IR team for any clarifications or feedback. Thank you so much all. Thank you.

Meet Parikh — Anand Rathi Share and Stock Brokers — Analyst

Thank you, sir.

Operator

[Operator Closing Remarks]