KEC International Ltd (NSE: KEC) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Vimal Kejriwa — Managing Director and Chief Executive Officer
Rajeev Aggarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Parikshit Kandpal — Analyst
Mohit Kumar — Analyst
Ravi Swaminathan — Analyst
Vaibhav Shah — Analyst
Amit Anwani — Analyst
Subramaniam Yadav — Analyst
Uttam Kumar Srimal — Analyst
Abhijeet Singh — Analyst
Prathamesh Rane — Analyst
Ishan Verma — Analyst
Garvit Goyal — Analyst
Jainam Jain — Analyst
Balasubramanian A — Analyst
Renu Baid Pugalia — Analyst
Manish Ostwal — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to KEC International Limited Q1FY26 result conference call. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this call is being recorded from the management side. We have with us Mr. Vimal Kejriwal, Managing Director and CEO and Mr. Rajiv Agarwal, CFO. With this I now hand the conference over to Mr.
Vimar Kejriwal. Thank you. And over to you sir.
Vimal Kejriwa — Managing Director and Chief Executive Officer
Thank you Sanya. Good morning to everyone and we welcome you to the Q1 earnings call of KEC. Let me begin by sharing an overview of our performance this quarter followed by our usual business wise update. We have achieved a strong top line growth with revenues of rupees 5023 crores in Q1FY26 reflecting an 11% increase yoy primarily driven by a robust execution in our TND business both in India and international. Aligned with our strategic focus, the TND segment’s contribution to overall revenues increased to 63% up from 55% in the same quarter last year. Our EBITDA for the quarter has grown by 19% year on year with margins improving by 50 basis points to 7% during the quarter.
We have successfully reduced our interest expenses by 40 basis points as a percentage of revenue now standing at 3% for the quarter, we have significantly enhanced our bottom line with PBT and PAT growth of 41% and 42% respectively. PBT margins have increased by 70 basis points to 3.2% visa based 2.5 last year. Our PAT stands at 125 crores. The growth in PBT and PAC continues to outpace EBITDA growth driven by reductions in interest appreciation and tax rates. On the order front, we secured new orders of over rupees 5500 crores led by our TND and civil businesses.
Additionally, we have an L1 position of over rupees six thousand crores, predominantly in the TND business which are expected. At least a part of them are expected to be awarded in the next few weeks. We have a well diversified and strong order book of rupees 34,409 crores as on date. Including the L1 position, our order book and L1 stands at over rupees 40,000 crores. We continue to maintain a sharp focus on our balance sheet. Our net debt including Acceptances stand at Rupees 5348 crores as of 30 June 25, a reduction of 250 crores. Visa vis June 30, 2024 Despite a revenue growth of over 2000 crores, that is 11% in trailing 12 months.
Now talking about the specific businesses, our TND business continues to be the key growth driver this quarter recording revenues of Rupees 3157 crore reflecting a stellar growth of 26%. This performance is a testament to our strong execution capabilities across geographies. The business continues to deliver healthy double digit EBITDA margins, maintaining its profitability momentum. On the order intake front, the business secured orders of over rupees 3200 crores across India, middle east and the Americas. These include substantial orders in Saudi Arabia. These wins reaffirm the MENA region’s strategic importance as a key growth driver for us In India, we have secured a repeat order from a private developer.
We have also strengthened our presence in the growing HVDC segment by bagging another significant order. Currently we are executing four projects including our major HVDC converter station project spread across three locations along with three HVDC transmission line projects. Our active participation in this space continues and we are currently or have actually bid for several HVDC opportunities in both domestic and international markets. In SAE, the business achieved revenues of rupees 359 crores, a growth of 4% year on year. This growth probably would have been higher but for the strengthening of the Brazilian reas in Brazil. Additionally, we are witnessing a significant traction in hardware orders.
We have also enhanced our operational capabilities with the installation of new equipment at our Brazil facility which will boost hardware production capacity and improve efficiency. In Mexico, the business has secured a major tower supply order reflecting a positive momentum in the North American T and D market. Overall, the business continues to benefit from a steady profitable order inflow with a robust order book and L1 position of over rupees 2,300 crores. With a robust order book and a sustained increase in tendering activities in the TND segment, we embarked on a bottlenecking and capacity expansion initiative for our tower manufacturing plants with minimal investment.
Following the successful capacity enhancement set of plants in Dubai, Jaipur and Jabalpur, we have now commenced execution expansion at our butivery facility in Nagpur. This positions us well to meet the increasing demand for transmission infrastructure in both domestic and the international markets. The overall tender pipeline in TND continues to be strong in both domestic and international markets. In India. The investment continues to be directed towards grid modernization, transmission infrastructure for renewable energy zones and inter regional connectivity, creating a surge in the tendering activity. We are well aligned with this national agenda and see significant opportunities unfolding in the near to medium term.
On the international front, the market outlook remains highly encouraging. We are witnessing sustained momentum in the Middle East. The large scale transmission programs, particularly in Saudi and UAE are driving demand. Additionally, we are actively pursuing opportunities across Americas, Africa, CIS and the Far east, all of which are investing in expanding and upgrading their transmission infrastructure to support economic growth and energy access. With a healthy order book and L1 in TND of rupees 26,000 crores, we are confident of delivering significant growth in this business. In civil, we delivered revenues of Rupees nine hundred forty crores for the quarter.
While execution has progressed across multiple sites. Growth was impacted by two key factors, continued labor shortages and delayed payments in the water segment. Although collections have started to improve in this segment, they remain below expectations and we are maintaining a calibrated approach to execution in this area. Considering our exposure. In a proud moment, we successfully handed over our first airport project in Tutiporin which was inaugurated by the honorable Prime Minister just a couple of days back. The business continues to strengthen its order book with multiple orders of rupees 2,100 crores in the buildings and factories vertical from reputed clients.
In a major strategic milestone, we made our entry into the semiconductor EPC segment winning a large first of its kind order from a reputed client. We also strengthened our footprint in the metals and mining segment with a repeat order for an upstream project for a steel plant. Notably, we secured two landmark orders in the buildings and factories vertical. The first is our largest ever order in terms of value while the second is to build our tallest structure we have undertaken till date. This marks our entry into the premium high rise residential segment featuring towers rising up to ground plus 70 storeys.
Today we are executing over 70 high rise towers for marquee clients across India. Our geographic footprint extends with a strong presence in key real estate hubs such as Mumbai, Pune, Bengaluru, Hyderabad, Kolkata and Gorogram. With a gradual improvement in the labor situation, steady collections from water projects and a robust order book of over Rupees ten thousand crores, we are confident that civil business will see good growth in the coming quarters. Our transportation business has achieved a revenue of Rs. 471 crores for the quarter. The business continues to focus on execution of new orders and completion of the ongoing projects.
The quarter marks several milestones achievements inaugurated by the honorable Prime Minister with KAC playing a pivotal role in their successful execution. KAC played a key role by deploying advanced signaling and telecom systems for the world’s highest Chennai rail bridge in Jammu and Kashmir, part of the Udhampur Srinagar Baramullah Rail Link. AC executed 102km of railway doubling works between Wanchi in Tamil Nadu including bridges, electrification, signalling and civil works. The electrified Sabaramati Bota and Rajpur Deravar rail section Gujarat were also inaugurated by the pm, both of which were successfully delivered by ksc. These projects are critical enablers for the rollout of Andhabharat Express services in this region.
We are currently executing orders for deployment across 500 track kilometers in partnership with our JV partner. This advanced train production system will significantly enhance the safety, reliability and speed of railway operations. We expect to secure some additional orders in this segment shortly. We are actively pursuing international opportunities and have also submitted bids for multiple tenders in the Middle East. With an order book of over rupees 3000 crores, our strategic priorities remain clear. Fast track completion of existing projects, optimize working capital and selectively bid for high quality opportunities in both domestic and international markets. Our cable business has issued revenues of rupees 383 crores, growth of 5% year on year.
Following the commissioning of the aluminum conductor plant at our Vadodara facility, we have now initiated the doubling of this capacity which will significantly enhance our ability to meet the growing market demand. In parallel, our capital investment for E beam and elastomeric cables is progressing as planned and we expect commercial production to commence by the end of this financial year. Our renewable business has grown by 87% achieving revenues of 136 crores. We are currently executing two large solar projects in Karnataka and Rajasthan. The 500 megawatt solar project in Karnatak has been partly commissioned and is scheduled for completion next quarter.
Additionally, work is progressing well on the 500 megawatt solar project in Rajasthan Badla. With the first phase slated for completion within this quarter. We continue to bid for select opportunities in solar, wind and the battery energy storage system. The oil and gas pipeline business has secured its second international order for terminal station works in Africa. In addition to its ongoing pipeline project in that region, the business is focusing on the international market, considering the low tender pipeline an extremely competitive scenario in India. On the ESG front, we continue to integrate best in class sustainability practices across our factories and project sites as part of our strategy to make all our manufacturing plants water positive.
We are pleased to Announce that our Jaipur plant recently received a Water positive certificate. With this achievement, four of our manufacturing plants, Jaipur, Beautybori, Jabalpur and Vadodara are now Water positive. In conclusion, with a strong focus on execution, a robust and diversified order book in L1 of over Rs. 40,000 crores and a substantial tender pipeline of over rupees 1 80,000 crores, particularly in TND and civil, we are well positioned to deliver sustained profitable growth in the coming quarters. Thank you very much. We are now open to take questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Parishik from HDFC securities. Please go ahead.
Parikshit Kandpal
Congratulations on a decent quarter. My first question is on standalone margins. So after 3/4 of improvement in EBITDA margins to Q3Q and 4K FY25 we have again seen a dip in first 1Q margin to 4.9%. So any particular reason? I mean any one off during this quarter standalone so you can give some more color on this margin trajectory.
Vimal Kejriwa
So Parishit, I think that the reason for that is very clear. One is our international business which is housed in UAE and all that is doing very well. Secondly, during the quarter our civil markets you saw a degrowth in the civil revenue. So because of which on the leverage impact we had much lower margins in civil and I think cable also because of we commissioned the plant and we did not get certain approvals from customers which are are now coming through. You know we had some stock etc. With us so there was an increase in the interest cost and I think that has led to this.
But I think we are very clear going forward and the way we are planning, budgeting, etc. We do not see any issue with the standalone margins. Overall we expect that our standalone margins for the year should be at least at 70 to 75% of our overall targeted PBT for the on the consolidated entity.
Parikshit Kandpal
The more on a longer term, sir, I mean as we are talking about consolidated margins improvements on a standalone basis, how do we see the margin and guidance there for FY26 27 on trajectory side, do you think that we will be in a position to achieve high single digit margins? I mean starting FY27 and somewhere close to about 7% to 8% in this year.
Vimal Kejriwa
So for FY26 we have actually guided at 8 to 8 and a half already. Okay. So you know, so I think I don’t see any major issue at least in meeting the lower end of it. But 8 and 5 is what something we are very, we think that is achievable. FY27 obviously we should have at least a 50 to 100 basis points improvement in that. So FY27 we will be probably inching closer to 10% then towards 8%.
Parikshit Kandpal
So I’m talking about standalone margins, standalone margins guidance.
Vimal Kejriwa
I don’t think I’ll be able to give you a separate number but as I said for the year we are talking about standalone margin to be within 75 to 80% of our console margins, overall margins. Okay. So I don’t think the number will be very different. In fact to me the standalone margin should increase because if you look at the India TND business, we grew by almost 50% this year. We have an order book so that will grow. Civil is growing. So what will also happen is that the ratio between the India and international will also be more skewed towards India which will help us on the standard margins.
Parikshit Kandpal
My second question is on the pipeline, bid pipeline, especially on the TND side. So both on the domestic side and on the international. So what would be the bids you’d have submitted but still not opened in India and abroad. And how’s the tender pipeline looking on the TND side specifically for both domestic and international?
Vimal Kejriwa
I don’t have the exact number of what we have submitted not open. But I think the tenders which are either bid or which we should be bidding, let’s say the next one or two months is around 30,000, 90,000 crores. Okay 30,000 in India and 60,000 in the international market. Those are the numbers for the bids which we expect that you know in the next two or three months should get bid and decided.
Parikshit Kandpal
The building sites. I have recently seen one of the launches which has been sold out. So I understand Case is doing that. So which is also a very premium project for entire Mumbai. So just wanted to understand on the premiumization side of the building, epc. So how has been a journey over last few quarters and now you think that you’re in a position where you can bid across all, I mean segments like mid mid luxury, luxury, ultra premium. And do you think that this will trajectory wise improve your margins double digit in the building segment and out of the total civil, how much Is the building now?
Vimal Kejriwa
Yeah. So I think the BNF is roughly around 5,000 crores out of our order book of 10,000 crores for civil. So roughly 50%. Okay. And I think what is happening, Parikshit is that we are focusing on increasing the ticket size of the orders. So in fact most of the orders which we have won during the current quarter, most of them are above 500 crores. In terms of size, clearly I think premiumization is on the card. We have also reduced the or say increase the minimum size of orders which we are taking in civil. I think about 300, 400 crores is what we are not taking below those numbers.
So you will start seeing a lot more larger orders coming out. This will help us in also fast tracking execution because we’ll be working at a lesser number of sites. Today we had 310 projects. Overall we are reducing it to 75. We probably reduce it to 250 in terms of number of sites at which we are operating. I think that’s the way we want to work on it.
Parikshit Kandpal
Sure, sir. Thank you. Those are my questions. I’ll join the.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, good morning and thanks for the opportunity. My first question is to. You alluded to a Swiss draw, the tender pipeline domestic DND. But I think the first half Q1 was too slow. How do you see the tender finalization in the rest of the year? And in the 30,000 crore we spoke about the tender prospect, do you think that number will inch up as we go further in the fiscal
Vimal Kejriwa
Mohit, your. Question was not very clear to me. But I think what you are looking or seeing is that tender or award pipeline was slower in Q1 in India. I think that’s a fact. Okay. For whatever reason we did see a slowdown in awards happening. I think couple of things are happening. One is we are seeing a lot more private sector sort of being more successful in tbcb. Okay. And what we are seeing is that, you know, unlike power grid where they are tied up with a particular EPC before the bid. So for them awarding becomes very easy for private sector.
You know, they start all the processes after winning. So typically we have seen that a large number of bids which have been won by the private sector are yet to be awarded. And right now I think we are very close in discussion. So you will probably see a lot more awards happening whether to us or to anyone else in this quarter on the India TND sector also, I think there Were a lot of pressure on the transmission grid and there were some solar plants and other renewal plants which have been delayed. So I think there was probably some rethink happening on which lines to prioritize which not.
So I think that has now got cleared. So we are now seeing a lot of bidding happening at the developer level for the TBCB projects. And I think we will start seeing a lot more awards in this quarter as well as in the next quarter.
Mohit Kumar
Sir, when you say L1, that excludes TBCB, right? It will include only power grid. Am I right?
Vimal Kejriwa
When I say L1, I am L1 with the developer. Okay,
Mohit Kumar
understood. How do you think about the Middle East TND opportunity in FY26 compared to let’s say FY25? And the rated question is how is the competitive intensity in the Middle east in particular?
Vimal Kejriwa
So the tender pipeline remains where it is. I think we’ve been talking about 50,000 to 60,000 crores at every conference call. And I think it has been continuing in in that manner despite the awards happening. So it’s keeps on rolling over. You get new tenders coming in. As far as competitive intensity is concerned, I think we are seeing some increase in the intensity in the UAE side, Saudi side which is our main market. And our L1 story of fit has a large portion of Saudi L1s in that has not seen any significant. In fact, I’ll say it has seen a reduction in the competitive intensity in the Saudi market.
In fact recently where we have been, one of the projects is in 6,000. We just saw three or four bidders. Earlier we used to see seven or eight. So slowly, slowly because the business has become, I’ll say so large and people are winning and I think they are more satisfied with what they have. The competitive intensity in the Saudi and we’re not asking, but also in India has become significantly less for the large value orders.
Mohit Kumar
Understood. My last question. Is it possible to share the KEC Asian cables? A bit than that.
Vimal Kejriwa
I don’t think we are giving it in this fashion. But if you need to have more data why don’t you speak to Abhishek and he’ll give it to you.
Mohit Kumar
Sure, take it offline. So. Thank you and all the best.
Vimal Kejriwa
Thanks.
operator
Thank you. The next question comes from the line of Rami Ravi Swaminathan from Evandest. Please go ahead.
Ravi Swaminathan
Hi sir. Congrats on a good set of numbers. Sir, my first question is with respect to the India domestic power TND market we are seeing steady growth in BCIL and even the Private players awarding. What about states, sir? Are we seeing traction increasingly from stateside? Can that become a very sizable opportunity going forward?
Vimal Kejriwa
So Ravi, you’re right. We are seeing lot of traction happening. But I think what has happened, Ravi, is that somewhere, I think a year or two back, I don’t remember when the Minister of Power issued a guideline saying that all projects about 200 crores should be on TBCB within the states. Okay. Because of which many of the projects have been sort of stuck because states don’t want to let it go. And ministries are not approving them, saying you need to go through tbcb. In fact, if you look at the latest list of TBCB projects, especially in Maharashtra, I think Maharashtra has accepted that.
And we are seeing a large number of projects coming up in Maharashtra on tbcb. There are other states which are slowly falling in line, not yet fully reconciled. Which is the reason why we have seen a slowdown in some of the state demands. But it’s a matter of time. Either they come under TBCB or then they convince the Ministry of Power that, you know, like I just saw recently, a big tender from Gujarat where they were able to convince the government saying that, you know, TBC will delay my project and I need to do it fastback.
And they went ahead and got an approval. So I think we will definitely see a lot more state projects coming up. Because with the way the interstate grid is expanding, ultimately the power will have to go flow down further. I don’t think we have any doubt about it. It’s only because of this confusion between TBCB and non TBCB that we have seen large projects, you know, getting sort of on old. But that’s getting resolved now.
Ravi Swaminathan
Understood. And can they be, I ask, large PGCL kind of ordering, say all states combined put together per annum, say two, three years down the line, size of the market.
Vimal Kejriwa
So, so at a point of time when TBCB was not there, power grid and state was almost equal. Both of them used to run a 40,000, 45,000 crores each. Okay. What you have to understand is that what would be the credit worthiness of each of these states and also since it will be on tbcb, who will win them? Now recently there was a TBCB award in Maharashtra. But the TBC is still done by PFC and rec. Okay. So you know, so what happens is for us the credit risk shifts from the state to the private developer and we are seeing a lot more localized developers coming into state, you know, so I think, I think we have to wait and watch how that Market evolves.
Okay. Like Power grid is also also bidding for all of that. So we’ll be able to wait and watch how this evolves which which players will play in the develop in the developer market that the power grid is as. As aggressive or not. And in fact we’ll be surprised in some of the one or two State, State TBC business when I call it State tbc. The line is for intrastate. Okay. We have seen, we have seen the State Grid participating as a developer. So we have to wait, we’ll have to wait and watch how this entire scene evolves. Yeah,
Ravi Swaminathan
understood sir. And my second question is with respect to the Middle east piece we are seeing very good traction in the power TND side. But Middle east is also investing into renewables and DSS very significantly are revenues from renewables as of now I.e. solar, EPC etc relatively small like 4,5% of top line. Can this become a very large piece like say significant size equivalent to that of our T and D kind of revenue over a three, four year period.
Vimal Kejriwa
I don’t think we are looking at that sort of growth in this business at the moment. I think we were talking about reaching 3 to 4000 crores in next two years. Okay. And right now our focus is more in India because there is so much and more work right now happening in India. I think if I’m not wrong, we have seen we are now putting almost 19 to 20 projects in NTPC right now which are under. Which have already been bid. So I think what is the other piece which is there Ravi, is that in the Middle east market the project sizes are very large.
They also typically include the module supply which increases the risk on the margin significantly either way. And we are right now not keen to take any module supply risk because of the volatility. So I think we are happy with what we are doing in India. The growth which will happen in India is apart from solar, we have started coating for wind also. So you will start seeing some improvement in that area. And best is something new for us. I think we have quoted one of the small projects. We are now looking at it. We’ll see.
So maybe you start seeing a change in the way our renewal numbers appear to you from next year onwards. We definitely see the numbers going up significantly but not to the tune that they match TNB. Today we are not thinking about that today. Maybe next year we may change our thought process.
Ravi Swaminathan
Understood. And my final question is with respect to profitability is there. I mean given the fact that so much amount of ordering is happening both in India and outside India. And many of the your peers also would be having their hands full in terms of projects, execution etc. Is there a possibility of profitability of the poverty and business improving further from here? And also on the non poverty India business have the profitability of the water and railway business bottomed out? Are you getting any sense on that?
Vimal Kejriwa
So we already mentioned it at the start of the speech that we have a double digit margin in the power tnd. Okay. Whether it can increase further I do not too early to comment right now. But yes, the orders, the competitive intensity has slowed down. So the margins are okay. But I think what has slightly changed in power TND is a large number of PBCB bids have been won by private sector. So which in a way creates a problem because the power private sector wants to supply the conductor, they want to do the insulator and all that.
So you know the volume of business which you generate may go down and so that there may be I’ll say a slight impact on the increase in the margin. Okay so but I think a double digit is what we have been looking at and I think we are happy with that part of it coming to non PND we just heard. So I think we will start seeing, I think we have reached the bottom that that is the right statement to make. And I think that’s why when you look at our margins we had a 7% margin this quarter but we are talking about 8 to 8.5% for the year.
So clearly we are seeing an uptick which will happen in the margins in the coming quarters and will also be driven largely also by the margin changes in civil and cables.
Ravi Swaminathan
Understood sir. Thanks a lot. Thanks a lot.
operator
Thank you. The next question comes from the line of Vaibhav Shah from JM Financials. Please go ahead.
Vaibhav Shah
Thanks for the opportunity. The first you on the water side, what is our outstanding receivables and helping issuing money in first quarter or in Q2 so far?
Vimal Kejriwa
I think you missed my first part. We have received around 257 crores in the first quarter. We have been receiving money this quarter also. In fact yesterday also we got around 1012 crores, 15 crores. So this month 50 crores. So we got around 50 crores this month also. So the money is flowing as I said not flowing in but trickling in. Some parts one spread is flowing and other is trickling in. I think that’s the way it is. I think we have an overall AR of around 800 crores. Part of it which is built, part of it is not yet built.
Because typically the way all these departments work is that they will not let you build till the earlier amounts are paid. So there is some outstanding in terms of billing required to be done. I don’t know why you build it now. 250 crores is the build amount. Okay.
Vaibhav Shah
Okay. Okay. So secondly, if you look at the non TND part in terms of revenue for the last four or five quarters, we have seen some amount of decline. The pace of decline has increased over the last two, three quarters. So when do we see a growth coming back in the non TND part?
Vimal Kejriwa
I think our expectation is that from the current quarter Q2 we should start seeing a change in the trend. Okay. Whether it is. Whether it will be very visible this quarter, I am not sure. But it will start changing. But from Q3, Q4 onwards you will definitely see a significant uptick happening in the non tnd. Whether it is civil, whether it is cables. Clearly one of the reasons for the growth being flat also is that we have actually slowed down our railway business. So railway business which was 4,000 crores three years back, you know, it’s come down to two and a half thousand crores.
So you know, that’s one significant reason. Secondly, I think oil and gas has been a bit of a disappointment. We have not seen any tenders also coming in and too much of competitiveness. So whatever growth we are projecting there has not happened. But otherwise I think we are pretty confident that from next, from this quarter onwards, Q2 onwards, we will start seeing a change in the trajectory of the growth of non tmd.
Vaibhav Shah
Okay. So lastly when we bid for these projects, so across the verticals, what are typically our margin thresholds say in the TND space and non TND space?
Vimal Kejriwa
It depends. So to me it’s very, very difficult to give a simple answer. But typically 8 to 10% is what you would like to bid for. Cables would be lower at the PBD level because it’s a product business. So you know, it’s a different thing. Plus it also depends upon the competitive intensity of that region or for that particular. Like I’ll tell you in Saudi, the bidding can happen from 8% to 20% or 25% depending upon the project and all that. So very difficult to give a number. But there is a minimum threshold below which we will.
We will not take a project unless it is really very strategic for us.
Vaibhav Shah
You said that around 8 to 8 and a half percent for 26 and you are confident of closer to 8% for sure and for 27 you mentioned that it should be a 70500 improvement.
Vimal Kejriwa
That’s what we are looking at. Yes.
Vaibhav Shah
Okay. Thank you sir.
Vimal Kejriwa
Thanks.
operator
Thank you. The next question comes from the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
Thanks for the opportunity. My first question is on the pipeline which you highlighted one like 80,000 crore. If you could give us some sense how much is from TND and civil segment wise and between international and domestic also. And second thing I would like to understand how much we are building for you said Statcom has been we got first order and pipeline is robust. Any color on Statcom HVDC non HVDC if possible for you. Yeah.
Vimal Kejriwa
So as far as the pipeline is concerned I had mentioned that I think around 1 lakh 80,000 crores. Okay. Of which around 90,000 and odd is in the TNB sector of which 30,000 is in is in India. So balance 60,000 is outside India. Civil is around 50,000 crores plus. Okay. What was the next question?
Amit Anwani
HVDC non HVDC Stackom any color on what we are building in.
Vimal Kejriwa
So HVDC also I will make some statements saying that we are right now doing four projects. One of is a converter station and balance. Three are lines. We have bid for some and we are bidding for some more HVDC lines. So I think you will definitely see some, some some order wins happening in the HODC segment both in the line as well as on the converter station side where we have a limited role but it could be a large tender as far as platform is concerned. I think the tenders are slowly coming in. I think this quarter we will see some more tenders coming out.
Not sure whether we will get the award this quarter but I think in Q3 we will definitely see some more awards coming in the Stratcom. I think with the renewable energy getting pumped in a lot more the Statcom bill is becoming absolutely essential. So I think Q3, Q4 onward, Q3 onwards you will see a lot more orders coming on the Statcom. A lot more being decided and hopefully we’ll get some of them.
Amit Anwani
Yeah. Secondly on civil you said we faced labor shortage and we saw the revenue decline and also delays in payments and we’re talking about very strong pipelines what sort of growth we are building. And second is this the segment which is impacting working capital Also we saw working capital was 128 days or some color on how the civil will pan out with respect to growth and is it a drag on working Capital. What kind of working capital numbers we are working around for the remaining nine months.
Vimal Kejriwa
So I think there are various questions which you are asking. So one is as far as if you look at the payment delays, they have generally happened only in water and we are not seeing many major payment delays happening otherwise, especially on the residential and the industrial sector where we don’t see too much of payment delays. Okay. As far as margins and other working capital drag is concerned, what has happened was that we had four large viaducts, two in Delhi metro, two in Chennai Metro. Out of that fourth, three have been fully handed over to the client and commissioning is going on I think at least in one line.
They’re waiting for the Prime Minister to come and inaugurate others also should happen any point of time. So most of these orders have been significantly back ended in terms of cash flows. Now that these projects are completed, we will definitely see a positive cash flow happening from these three large wider quarters. Each of them are I think 1000 crores and not whatever number I think is 3000 crores. So we saw the working capital which is currently impacted. Yes, partly is also because of civil, partly because of water and partly because of the back ending of the wire duct which is getting resolved.
What I already told you that we got to 50 crores, another 50 crores this month already. So which is why we have been very comfortable in saying that the net working capital which is today 128 days will probably come down to 110 days is what we are still committing. And I think the other reason why there was a slight increase in the working capital is also because of the inventory buildup. One is I think with the benevolent steel prices we did invest a little bit more on the steel than what we should have in the normal courses.
The prices were not as low as they are. And secondly, as I mentioned earlier there were some delays in getting our aluminum conductor approval from a major customer because of which we had some buildup of finished goods inventory in cables which is now getting liquidated. So we are very confident that the working capital cycle will improve significantly now onwards.
Amit Anwani
Sure sir. So lastly on the COVID you highlighted, I think we are already doing 500 track kilometer order. We got with one of the partner wanted to understand what is the pipeline. Is there any pipeline for this year? If you could quantify for coverage. That’s my last question.
Vimal Kejriwa
I think Amit, coverage is not going at the pace at which we want it to grow or the government wants it to grow. I think the basic reason for that is I’ll say still a supply chain issue short because most of the players who are there in this field and I say not the people who are qualified but the people who are supplying to them. A lot of them are small electronic manufacturing guys. And so I think we are still seeing a little bit stress on the supply chain part of it. And Kavach as you know, 70, 80% or even more is on supplies.
So that is the reason why Kavach ordering has been a little bit slower than what it should have been. Okay. We do expect that it will start picking up. There are some tenders which where I think we are L1 or we should be. Some part of it is included in my L1 list. And there are other tenders also which are being quoted. But it’s not something which is happening in a. Honestly in a very, very big way. Okay. Till the issue gets resolved on the supply chain side, I think we’ll see a steady growth, not a very fast growth.
Amit Anwani
Sure sir. Thank you so much.
Vimal Kejriwa
Thank you.
operator
Thank you. The next question comes from the line of Subramanyam Yadav from SBI Life Insurance. Please go ahead.
Subramaniam Yadav
Thank you, sir. Because this one could come guidance on the debt level for the full year. Because we have seen this quarter about increase of debt about 800 crore. So how does this debt pan out during the year?
Vimal Kejriwa
Yeah,
Rajeev Aggarwal
so basically what we are expecting. That this quarter also you would have seen that we have reduced our debt. Level 500 million quickly. And we expect some more reduction to. Happen especially in H2 where normally H1. You know, your debt level generally goes. Up, you know, compared to the March level. But overall for the year as a whole we have earlier guided for about 110 days of NWC and debt will translate to something around four and a half thousand crore of debt level by. The year end despite the 15% growth. On the top line. So we do expect that we will be able to maintain Our numbers about 4.5 by the end of the year.
Subramaniam Yadav
And for this will happen by reduction of inventory and or improvement in the receivables. Give some color on data.
Rajeev Aggarwal
So there are multiple actually handles which are available. Some bit of a payment is also. Let’S say due from Afghanistan. So we expect that payment get realized in quarter three. Also mentioned in the earlier question that you know we are expecting some payment release from three Metro project that has. Been handed over to the client and where the collection was back ended. So that money will also come. But there are some reduction in the inventory. Obviously will happen as we have already started getting approval from the customer. So the conductor stocking that we did so that will also go in quarter two and quarter three. Apart from that, as Vimal also guided that we have done some stocking of steel because of the benevolent steel sizes. So hopefully that will also get consumed. In Q2 and Q3. So all of these efforts will actually reduce to the lower debt level and lower NWC level.
Subramaniam Yadav
Okay, thank you. And one more question sir. When we say the non TMD mix of the revenue would increase going ahead but when we were looking at the string, we are expecting the TND portion next to increase hence our margin would improve. But when the non TMD mix would increase then is it a risk to our margin what we are guiding there?
Vimal Kejriwa
I don’t think we mentioned in that format what we had said that you know there was a question on the standalone business etc saying what will happen to the standalone revenues and margins. That’s where we had said that you know the civil and other businesses and cables are essentially more India centric and we expect them to increase. So the standalone margins will increase. I don’t, in fact we mentioned that our TND revenues have gone up from 55% to percent 60, 63%. I, I if I made a comment, it’s my mistake. I don’t think we made a comment that the PND revenue percentage will go down today because the growth is right now happening on tnd. Okay.
Subramaniam Yadav
Okay. Okay. Yeah. Thank you. Thank you.
Vimal Kejriwa
Thanks everyone. Thank you.
operator
Thank you. The next question comes from the line of Uttam Kumar from Access Security. Please go ahead.
Uttam Kumar Srimal
Yes sir. Good morning. Thanks for the opportunity and congratulations on good set of numbers. Sir, in the presentation you have mentioned. About battery energy storage services. So what kind of opportunities we are seeing in this particular segment and how we will operate in this particular segment. As EPC contractor or in some other. Form if you can throw some light on that.
Vimal Kejriwa
I think we are very clear on one thing that we’ll be only be an EPC contractor. Okay. So I think we are not there right now or I don’t think in the near future we want to get into ownership or development or whatever. I think we are just stepping into it too early to make give any numbers or comments and all that. But since we are doing solar and we started bidding for wind and now that there’s a hybrid model where every developer wants to have a minimum 5% has to be on the battery storage.
So we are, I think that we are just getting into that market and we just baby steps etc. There are inquiries that we have quoted for some projects where basis required as part of the renewable projects, solar, etc. So that’s where we are there. Also I think there are some smaller inquiries coming in from the Middle east, etc. Where we are already there from the same client. So we are looking at that little bit too early. Do you think we’ll get a base order this year? I am not sure. Maybe, maybe not. But it’s something where we are just getting into it.
Uttam Kumar Srimal
Okay, answer my next question on labor. So how is the labor issue currently. Compared to last quarter? It has reduced or it is on the same line what was in last quarter?
Vimal Kejriwa
So we had a shortfall of around 30, 35% till I say June of that Right now I think the shortfall has come down to around 10%. So almost 20% of that we have been able to manage. In the civil side. We still see some shortfall on the transmission side on the election gangs because of the large volume of work which we are seeing. And most of the lines are 7, 6, 5 where the towers are very large. We need much more specialized gangs. So I think that’s one area where I think all of us are struggling on the transmission side.
But civil, I think we are, I think reasonably, I’d say comfortable.
Uttam Kumar Srimal
Okay, that’s all from my side and all the rest.
Vimal Kejriwa
Thank you. Thank you.
operator
Thank you. Before we proceed to the next participants, I request all the participants to limit the questions to two questions per participant. Thank you. The next question comes from the line of Abhijit Singh from Systematics Group. Please go ahead.
Abhijeet Singh
Yeah, thank you for the opportunity. Am I audible?
Vimal Kejriwa
You may want to speak a bit louder.
Abhijeet Singh
Oh, hello.
Vimal Kejriwa
Yeah, go ahead, sir.
Abhijeet Singh
First question is on the non TND business. And a number of participants have alluded to some sort of revenue weakness in the last few quarters and or let’s say more than few quarters, particularly impacted by railways and the water business. And if we look at the overall business somewhere, non TND is kind of shadowing the good performance of the TND business. In an environment where TND is growing super normally, the entire sector overall performance is somehow shadowed by the non tnd. So what are the key learnings that we have in the last two to three years that going forward when we scale up our order influence order book for non TND in water, real estate and other businesses.
So what are the key learnings that we have which might prevent us or will help us essentially in better execution going forward?
Vimal Kejriwa
One thing what you need to understand is that we Are a diversified economy. We have diversified into all like I was not there in seven, six years back. Okay, just for an example, renewables also we diversified into all this to sort of de risk the company. Similarly, we diversified geographically because of that. Now if you are covering us for a long time, you see three years back India TND actually had a loss today. We are talking about more than a double digit margin. So I think when you are in EPC business these things will keep on happening and you will never be very sure in two years which of your engines will fire and what will happen.
I think that that’s what is happening today. Unfortunately, railways for whatever reason had a problem so that’s why it is there. So I don’t think we are looking at it from a very short term view. We need to diversify our risks and both business line wise, business segment wise. That’s why in civil you’ll see seven or eight segments, cables, you see all sorts of products, whether it’s LTE or HC or EHV or conductor. So that’s going to happen. Same thing is happening geographically. We have entered into so many new countries. So I think you’ll have to look at it from an overall angle.
And as I mentioned earlier, we are clearly expecting that the non TND growth has sort of decline, has bottomed out and we’ll start seeing increase in the growth and the margins of the entire non T IND business.
Abhijeet Singh
Sure, sir. The second question sir would be on the labor issue that we talked about. You said that it was 30 to 35% shortage versus now improved to 10%. So what is the kind of benchmark that you know, we have? We are saying that now it is only 10% versus more earlier. How do we, how do we arrive at this number and can we quantify this labor shortage in terms of our execution pace reduction that is happening because of labor shortage?
Vimal Kejriwa
The quantification on the labor numbers are very clear because you know each project requires how many people at whatever stage they are. So you look at that number saying this particular project requires 800 people and I got 700 there. That’s because availability up front, you know, this is availability of front. This much work I can do this many people I require for that, that work. I don’t have that people. So that’s how you quantify. Okay, I was 30% short and now I’m 10% short and all that. Okay. As far as quantification of revenue is concerned, very difficult to say.
But I don’t think we had anticipated there will be a Degrowth in civilization. Okay. So now the fact that we had a big growth in civil, one is labor, one is on account of water. But if you look at the numbers maybe 300 crores, maybe 500 crores but very difficult. I don’t have that number but since we had a bigger than civil I’m just looking at that because by some 10% or something, 900 or so, you know, so it’s a bit difficult to say numbers to it. Yes.
Abhijeet Singh
So that will be it. Thank you for answering the questions.
Vimal Kejriwa
Thanks Anita. Thank you.
operator
Thank you. The next question comes from the line of Prathamesh Rani from Alara Securities. Please go ahead.
Prathamesh Rane
Congratulations. Additional quarter. My first question like was on the revenue growth guidance, are you maintaining that and. And on the order inflow guidance which you had given previous quarter.
Vimal Kejriwa
Yes,
Prathamesh Rane
thank you.
operator
Thank you. The next question comes from the line of Ishan Verma from Increase. Please go ahead.
Ishan Verma
I wanted to understand that we are targeting a huge growth in the solar. Strong growth in the solar and.
Vimal Kejriwa
We can’t understand.
operator
To use handset.
Ishan Verma
Is it better now, sir?
Vimal Kejriwa
Slightly better, yeah. Go ahead.
Ishan Verma
Yeah. So I want to tell you something that we are targeting a strong renewable segment. Right. But we don’t see any order intake in this quarter in that segment. So just wanted to understand what might be the reasons for that. Like with the projects return lucrative or not. Is the bidding momentum not there?
Vimal Kejriwa
No particular reason for that. I think a lot of tenders got bunched up in the last one month. I think June and July we have bid for a large number of tenders. I think most of the. When you look at the. And most of the clients are psu. So I think they all take their own time to start. March, April and all we have generally seen are slightly low on bidding. Also we were quite busy with the execution of two of our large projects and interim we also wanted to build a better team or bigger team.
I think those are the reasons. Otherwise there’s no particular reason why orders have not happened. We are quite happy with the orders which we have and the tender pipeline where we have bid for a large number of tender orders.
Ishan Verma
And secondly sir, this tower capacity expansion. What kind of expansion are we doing? Is it 10,000, 20,000?
Vimal Kejriwa
I don’t have that but it will be around 10,000. 10 to 12,000 tons is what we are looking at expanding. But you breathe.
Ishan Verma
Can you explain elaborate something on the execution in the international market, particularly in se. That was very interesting. See that even last year also from Q2 to Q4 we see a big growth. So what kind of growth are you expecting on this quarter?
Vimal Kejriwa
SA Towers is a product supply business we have. So right now it’s virtually operating at full capacity. So the growth in that business will only happen beyond the inflation and the currency and all that. If we keep on expanding capacity. Right now with all the uncertainty on tariffs, et cetera, what is happening, we are not expanding the main business tower supply. I have already mentioned that we expanded our hardware. So whatever growth is coming right now is coming more from the hardware also. This quarter the growth was appearing a little bit lower because the local currency strengthened a lot.
So which resulted in a lower growth in terms of US dollars and inr.
Ishan Verma
Okay, thank you.
Vimal Kejriwa
Thank you.
operator
Thank you. The next question comes from the line of Garvit Goyal from from Invest Analytics Advisory llp. Please go ahead.
Garvit Goyal
Hi. Am I audible?
Vimal Kejriwa
Yeah.
Garvit Goyal
Good morning sir. And congrats for a decent set of numbers that I have. Question on the TND part only. There are a few problems going on like tendering delays happening due transmission connectivity backlog especially in the states of Rajasthan and Gujarat. And secondly on this ISTs waiver expiry awaiting extension. So how do you view this situation going on right now in the industry?
Vimal Kejriwa
I think there was some slowdown in the last quarter and as I mentioned earlier we have now seen a large number of tenders which are being quoted by the developers. Also whatever tenders were won by the developers in Q4 last year and Q1 this year are now under as a final decision. So you will start seeing some orders coming out in this area. I think in the next two or three weeks there will be large order inflow to the EPC companies. I’m not worried about it. I think what you’re talking about is row issues in the execution of the current projects.
I don’t think that is impacting the new tenders in this area. What is happening is that there are a lot of people who are revisiting their solar plants requirement, etc. So which is where there was some I think realignment of future projects which I think has been completed. That’s why a lot more tenders have been released now. So I don’t think there’s anything to worry about the pipeline in the India TLD market. No.
Garvit Goyal
Got it sir. That’s it for my side, sir. And all the best for the future. Thank you.
Vimal Kejriwa
Thanks Galvan. Thank you so much.
operator
Thank you. The next question comes from the line of Jain and Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity. So my question is on the HDC order. So how are we seeing the opportunity for us outside India in HVDC segment? And in which geographies are we seeing these opportunities.
Vimal Kejriwa
Outside India right now is limited to Saudi as of now. Okay. There are. They are already implementing quite a few equity orders. Including one which is a very large one is from Saudi to Egypt with an undersea also part of it. Today there is a. I think there are two very large HVDC lines which are under tendering in Saudi. Apart from that I don’t think I have seen any other HVDC outside of India right now. Anand anywhere. North America. Yeah, they’re talking but I think that there’s. So sorry, I should have corrected North America. There are.
There is. There are some accurate talks happening also. They’re not talking about 765kb in North America also. So that. But then our job is only supplies. Yeah.
Jainam Jain
Okay. Thank you so much.
Vimal Kejriwa
Thank you sir.
operator
Thank you. The next question comes from the line of Bala Subramaniam from Arihant Capital. Please go ahead.
Balasubramanian A
Good morning sir. So my first question regarding renewables. Revenue grow almost 87. But this segment stays small around 136 crore. What is the plan to scale in this segment? And given tender competition.
Vimal Kejriwa
What we mentioned earlier was that we have bid for a large number. We are very positive on this and I think in the next two to three years we are expecting this business to be from 3000 to 4000 crores is what we expect it to be.
Balasubramanian A
Okay sir. So in oil and gas you mentioned. There is no tendering activities in India. Is there any focus on international market like which are geographies we are targeting.
Vimal Kejriwa
So we already have two orders in Africa we are targeting Middle East. So it will basically going to be between Africa and Middle east where we will see India. The tenders are far, very, very little and all very small tenders. 50 crores, 70 crores and all that. So where the competition is not where we can win. Which is why we have almost sort of vacated that market of some hundred crores. Now we have seen some tenders for the first time which are above 100 crores. Let’s see what happens. But I think our focus is going to be international in oil and gas.
operator
Thank you. The next question comes from the line of Renu Bed from IIFL Capital Services. Please go ahead.
Renu Baid Pugalia
Yeah. Hi. Good morning sir and congratulations for strong numbers. I have only one question. Just a follow up update on. There was this bribery case with power grid officials which is under inquiry. So Are there any updates on the outcome of that inquiry? And internally as a fallout of that event, what are the kind of risk management of business practices that you strengthen to avoid similar instances in future?
Vimal Kejriwa
As of now there is no particular update on that case. The case is subjudice. The hearings have not yet started. Okay. So as and when it will I think progress in its normal course. I don’t know how many years it will take, but that’s the way it should take. As far as the company is concerned, we had very clear risk management policies. So we are reemphasizing those policies. Actions are being taken wherever required to be taken. I think let’s understand that this is a one off small transaction which has happened. There’s some transgression which has happened in the system and we are taking care of that, those transgressions to ensure that even at that small level it doesn’t happen again.
Renu Baid Pugalia
Do you think that it could pose a risk of CEC being barred for a certain period of time with power grid projects in India? Or it could just be more of a penal penalty in monetary terms?
Vimal Kejriwa
I honestly have no idea what power will want to do, what they will not want to do because I think we have to understand that it is something which has happened post completion of projects and all this. I think let’s. I have no comment to offer right now on what power grid will do or will not do. I think let me put one thing Renu is if you look at my, if you look at my order intake and my order book today and also what I mentioned earlier on the TBCB side where almost, I think right now 50% or more orders are now going into non PGCI.
So even if even in the unlikely scenario that PGCI takes some as something against us or something, I don’t think it’s going to impact our TND growth in any manner. We have a large enough order book in India for the at least for the next six to eight quarters. Are we worried on the growth or we are not worried on the growth? We don’t like what has happened, we don’t like it and we are taking whatever is required to be done.
Renu Baid Pugalia
Right? Sure. Because this has been one of the concerning elements across investors. So I thought of this.
Vimal Kejriwa
Yeah, I appreciate your question but I think investors should not be worried about it. We have more than enough order, order book and order and pipelines and as I said today almost 50% of the transmission in TBC is going to non power grid today. Okay. So there are enough and more alternate Avenues happen with us in case something happens. And you would have heard that we have a 6,000 crore order, order, sorry L1 pipeline today. And I’ll say almost 80% of that is in the international TND market. So I think international T and D market is looking very well.
So in the unlikely event that your domestic goes off or something, we always have our diversification part of it in international market. So my only comment would be that we should not worry about it.
Renu Baid Pugalia
Sure. Thank you. Investor shifting. Thank you.
Vimal Kejriwa
Thank you.
operator
Thank you. The next question comes from the line of Manish from Nirval Bank Securities Primary Ltd. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity. And I have only one question in terms of our working capital days with respect to TND business and non TND business. Do you have any broad breakup of networking capital days which is 128 days currently.
Rajeev Aggarwal
So clearly the working capital is intensity. In the TND business has been coming down over the last couple of years. Currently that is less than 90 days in TND business, non T and D businesses. Because of the various factors that Vimal. Also yielded some time back because of. The cash flow being back ended in metro project, water project, some payment delays happened for last few months. So there has been the, you know intensity is higher and that is actually, you know, not because of the non TND businesses working capital intensity being higher. So the Overall, you know, NWC days. Stands at about 120 days. And clearly we have various levers which. Are available on which we are continuously working on. And we expect that this should come down significantly in the coming quarters. And that is the reason we have given the guidance for the interest cost at 2.5% debt level to come down. To about 4,500 crore despite 15% growth that we have been talking about. So we are quite in control of the situation. So nothing to worry on that account.
Manish Ostwal
Sure. And one small clarification. You talked about the competitive intensity stable and large value ordering in India. So can you quantify the what is the size of the large value order where the competitive intensity is stable?
Vimal Kejriwa
Typically it would be around 500 course plus.
Manish Ostwal
Okay sir. Thank you. Thank you sir.
operator
Thank you. The next question comes from the line of Saket from Kapoor and company. Please go ahead.
Unidentified Participant
Namaskarji.
Vimal Kejriwa
Namaskar.
Unidentified Participant
Thank you for this opportunity sir. Firstly when you were mentioning about release of fund some odd cor in the water project. Are you alluding to the fund related to the J scheme in particular wherein there were some issues with many.
Vimal Kejriwa
Yeah, we only do J as of now it’s all. All money is in only.
Unidentified Participant
Okay. So for judge even what was our receivable for March and what is the current outstanding sir.
Vimal Kejriwa
But no major changes. Yes.
Unidentified Participant
Okay. So you mentioned about 300 something being released. And that was again the table have been built again. That is what you are trying to. So there is traction now in the schemes. Because other players, five players and all are showing 30 volume year on year. You.
Vimal Kejriwa
Above ordering it but had to achieve. But many such.
Unidentified Participant
30% degrowth sir. Not growth. Sir. On the point I was trying to understand is that whether the budgeted amount of say 68 69,000 crore which the government has alluded in the budget. That is what my point.
Vimal Kejriwa
Central map. Most of the funding Joanna is may other state central K Beach Kahani. Okay. I think east of Hoga Power Gakarvi. So it’s a matter of time the funds will start getting released and someone in the government start focusing.
Unidentified Participant
One more small point sir. In this the river linking project may be kept. When that can come into foray. I think project and all our huge projects going ahead.
Vimal Kejriwa
Especially project wise. I am not even looking at it segment wise.
Unidentified Participant
Second question is on the solar. So are we taking into account the bid pipeline and also you I think alluding to the 3000 crore and solar cables matching so some E beam one we are expanding.
Vimal Kejriwa
Crores of business coming out of renewable. We are very bullish on it. But we are waiting and watching and seeing.
Unidentified Participant
But what we are hearing that for the June quarter railway has been the biggest spender from the government side. So though this that is the reason. Otherwise the capex from the railways have gone up year on year by 50%. This is what the business JB are mentioning.
Vimal Kejriwa
I’ll say passenger amenities capex in the sense electrification. I think we are spending a lot more right now on amenities et cetera.
Unidentified Participant
Thank you.
operator
Thank you ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to Mr. Vimal Kejriwal for closing comments.
Vimal Kejriwa
Thank you so much. And I would like to once again thank all of you who are continuing to show interest in kec. Thank you.
operator
Thank you on behalf of KEC International Limited. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.