KNR Constructions Limited (KNRCON) Q2 FY23 Earnings Concall Transcript

KNR Constructions Limited (NSE:KNRCON) Q2 FY23 Earnings Concall dated Nov. 15, 2022

Corporate Participants:

S Vaikuntanathan — Vice President, Finance & Accounts

K Venkata Ram Rao — General Manager

Analysts:

Parikshit Kandpal — HDFC Securities — Analyst

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Mohit Kumar — DAM Capital — Analyst

Vibhor Singhal — Phillip Capital — Analyst

Faisal Hawa — H.G. Hawa & Company — Analyst

Veenit Prasad — Investec — Analyst

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Parvez Qazi — Edelweiss Securities — Analyst

Nikhil Abhyankar — DAM Capital — Analyst

Ash Shah — Elara Capital — Analyst

Prem Khurana — Anand Rathi — Analyst

Uttam Kumar Srimal — Axis Securities — Analyst

Devansh Goenka — Fusion Clothing — Analyst

Bharanidhar Vijayakumar — Spark Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to KNR Constructions Limited Q2 FY ’23 Earnings Conference Call. This conference call may contain forward-looking statements about the Company, which are based on the beliefs, opinions and expectations of the Company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

[Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. S. Vaikuntanathan, VP Finance, KNR Constructions Limited.

Thank you, and over to you, sir.

S Vaikuntanathan — Vice President, Finance & Accounts

Good evening and season’s greetings to everyone. Thank you for joining us today on the call to discuss the financial results for Q2 and H1 financial year ’23. Along with me I have, Mr. K. Jalandhar Reddy, Executive Director; and Mr. K. Venkata Ram Rao, General Manager Finance and Accounts; and Strategic Growth Advisors, our Investor Relation Advisors.

We have uploaded results and investor presentation on the stock exchanges as well as on our Company website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events post which we will have a question-and-answer session.

In the month of October 2022, the company completed transfer of equity stakes in the following subsidiaries with Cube Highways and Infrastructure. One, KNR Tirumala Infra Private Limited. The company has invested INR160.22 crores, in the form of equity and sub debt for which the company has received consideration of INR136.81 crores against transfer of 49% of equity stake and repayment of entire sub debt on 31st December 2021. And now, the Company has received INR68.13 crores against transfer of remaining 51% equity stake.

In addition to the above, the company shall be eligible to receive an additional consideration up to an amount of INR14.05 crores, subject to the receipt of certain approvals from NHAI, which is [Indecipherable]. KNR Shankarampet Projects Private Limited. The company has invested INR126 crores in the form of equity and sub debt for which the company has received consideration of INR108.51 crores against transfer of about 49% equity stake and repayment of entire sub debt on 31st December 2021. And now the company has received INR46.09 crores against transfer of remaining 51% stake.

In addition to the above, the company shall be eligible to receive an additional consideration up to an amount of INR4.61 crores subject to receipt of certain approval from NHAI and totally it accounts for 1.26 times. KNR Srirangam Infra Private Limited, the company has invested INR78.36 crores in the form of equity and sub debt for which the company has received a consideration of INR131.15 crores against transfer of 100% equity stake and repayment of entire sub debt through current transaction. In addition to the above, the Company shall be eligible to receive an additional consideration up to an amount of INR15.40 crores subject to a receipt of certain approvals from NHAI. So the total value worked out to INR1.875 crores.

Now, I would like to take — dwell more upon the current infrastructure and road construction sector in India. Starting with the key development on toll collections, the government is planning to rollout GPS-based toll collection system as a replacement of the already existing FASTag toll collection system for seamless toll payment and vehicle movement on the National Highways. But the implementation of this system might take some time, toll collections through the FASTag system continued with, I’d say strong momentum.

There is an increased vehicular momentum on the highways led by ongoing festive season as well as an improvement in the commercial vehicle traffic owing to increased economic activity. The toll collections are expected to increase on account of the hike in toll rates, which are linked to WPI.

Honorable Union Road Transport and Highways Minister Mr. Nitin Gadkari has recently set a target to construct 60 kilometers of highway per day. The target of highway construction is 12,000 kilometers for the current financial year. The government has recently decided to foreclose road projects where the contracts have become unviable or the contract was terminated due to default of contractors. Any banks that had their money in this — money frozen in these projects, these foreclosures would allow 100% debt repayment to bank in case of default by NHAI.

In these contracts, the contractors will get back 100% of their equity. We firmly believe that this move will open up the funding to the infrastructure banks. The Ministry has built national highways of 3,559 kilometers on year-to-year basis of 2022-’23 as compared to 3,824 kilometer year-on-year basis. Similarly, the awarding for the same period stood at 4,092 kilometers compared to 4,609 kilometers year-on-year basis.

Now coming to the key updates of the company. The percentage progress as of September 30th 2022 for HAM projects is as follows, Magadi to Somwarpet 65.5%, Oddanchatram to Madathukulam is 81.9%, Ramanattukara to Valanchery is 9.4% and Valanchery to Kappirikkad is 11.5%. During the quarter, the execution has primarily been driven by HAM projects. Out of the INR732.86 crores revised equity requirements of all the five HAM projects, the company has already invested INR172.61 crores as on September 30th 2022.

The incremental equity requirement of INR560.25 crores to be infused, that is to INR295 crores, INR160 crore and INR105 crore for the remaining part of financial year 2023, 2024 and 2025, respectively. You can refer to the Slide 27 of the investor presentation for detail on each HAM projects.

I will now take you through the key highlights of the company. KNR Tirumala Infra Private Limited, a subsidiary company, has received a bonus amount of INR8.13 crores inclusive of taxes for early completion of the project by simply two days and the same was passed on to the company which was shown in the standalone statement of profit and loss account.

The company has also received a Letter of Acceptance for the construction of four lane road from IDA Pashamailaram Industrial Park to ORR worth INR34.26 crores. The total collection for the Bihar project that is Muzaffarpur to Barauni in Q2 FY ’23 and H1 FY ’23 has been INR9.87 crores and INR21.90 crores.

Coming to order book position, as of September 30, 2022 the company has an outstanding order book position of INR8,041.5 crores. EPC road projects and HAM projects constitute 74% of the total order book, while irrigation projects constitute the remaining 26%. Client-wise, 57% of the order book is from third-party clients and balance 43% is from captive HAM projects.

The third-party order book or non-captive order book, which accounts for 57% of the total order book position is skewed between the State Government contracts worth 42% whereas 11% is from Central Government and balance 4% order book is from other private players. The total order book position is INR8,806.5 crores, including a new HAM project. With that, the irrigation project constitute 24%, roads constitute 28% and HAM constitute 48%.

Please refer page number 32 of the investor presentation for more details. The current order book position remains healthy and provides a clear visibility of execution over the period of the next 2.5 years to three years. A robust order pipeline and ready DPR, Detailed Project Reports, under the Bharatmala project should accelerate the projects of adding activity going forward. The company is targeting a further order inflow of INR4,000 crores to INR5,000 crores for the next one year.

I will now request Mr. K. Venkata Ram Rao, our GM to present the results for the quarter and how we have ended September 30, 2022. Over to Venkata Ram.

K Venkata Ram Rao — General Manager

Thank you, sir. Let me take you through the Q2 and FY — H1 FY ’23 standalone financial performance first, followed by the consolidated financial highlights. I will start with quarterly highlights first. The revenue for the quarter grew by 12% year-on-year to INR847.4 crores.

EBITDA for Q2 FY ’23 witnessed a growth of 13% to INR188.8 crores as compared to INR167.5 crores in Q2 FY ’22. EBITDA margin in Q2 FY ’23 stood largely stable at 22.3%. Net profit for the quarter was INR107.6 crores as compared to INR95.2 crores in Q2 FY ’22, a growth of 13%.

Now coming to H1 FY ’23 highlights. The revenue of H1 FY ’23 grew by 16% year-on-year to INR1,738.0 crores. EBITDA for H1 FY ’23 witnessed a growth of 14% to INR353.7 crores as compared to INR310.8 crores in H1 FY ’22. EBITDA margin in H1 FY ’23 stood at 20.4%. Net profit for H1 FY ’23 was INR208.4 crores as compared to INR168.3 crores in H1 FY ’22.

Now coming to consolidated financial performance. I will start with quarterly highlights first. The Company recorded 14% year-on-year growth in the revenue from INR842 crores in Q2 FY ’22 to INR961.7 crores in Q2 FY ’23. EBITDA came in at INR263 crores in Q2 FY ’23 as compared to INR177.5 crores in the same period last year. EBITDA margin in current quarter stood at 27.4%, profit after-tax stood at INR98.8 crores in Q2 FY ’23.

Moving to H1 FY ’23 highlights. The revenue far H1 FY ’23 grew by 18% year-on-year to INR1,942.1 crores. EBITDA for H1 FY ’23 witnessed a growth of 25% to INR474.6 crores as compared to INR380.2 crores in H1 FY ’22. EBITDA margin in H1 FY ’23 stood at 24.4%. Net profit for H1 FY ’23 was INR189.4 crores as compared to INR181.4 crores in H1 FY ’22.

Now coming on the standalone balance sheet, the company continued to maintain a strong balance sheet. The working capital days stood at 24 days compared to 60 days in June ’22. Standalone debt as of September 30, 2022 is around INR200 crores as compared to INR124.75 crores as of June 30, 2022. The consolidated debt as of September 30, 2022 is INR1,864 crores as compared to INR1,593 crores as of June 30, 2022. The debt to equity on consolidated basis as of September 30, 2022 stand at 0.74 times as compared to 0.66 times as of June 30, 2022.

With this, we can open the floor for questions and answers. Over to you.

Questions and Answers:

 

Operator

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

Parikshit Kandpal — HDFC Securities — Analyst

Yes, sir, hi. Congratulations on a decent quarter. Sir, my first question is on the irrigation receivables. So, can you update us on the status of the same versus the June quarter?

S Vaikuntanathan — Vice President, Finance & Accounts

Irrigation receivables as of today, because last year we told — at last con call, we told it is INR850 crores. But now as of date actually, it is around INR900 crores. So now around every monthly actually we are getting around INR50 crores to INR60 crores, especially in case of Vettam [Phonetic] we have just checked with the authority. They told that every month we will get around INR50 crores to INR60 crores. So we have got around INR160 crores as of now from the Vettam for the last three months. So as of now, our outstanding is INR900 crores.

Parikshit Kandpal — HDFC Securities — Analyst

And sir, what is the execution for the first quarter — the second quarter on irrigation — revenue from irrigation segment?

S Vaikuntanathan — Vice President, Finance & Accounts

Revenue from irrigation, it is around 16% actually, around INR120 crores — INR125 crores.

Parikshit Kandpal — HDFC Securities — Analyst

INR125 crores? So is there any path to visibility of reduction because whatever you are executing is getting paid and whatever is the backlog seems to be maintained at INR850 crores or INR900 crores and it’s not reducing. So by this year end, how do you see the debtors standing — outstanding? And on the execution, how this INR125 crore run rate. So how much do you intend to execute in the second half?

S Vaikuntanathan — Vice President, Finance & Accounts

See the Vettam project is — the payments are out of the budgets. So they have said that at present they are restricting to INR50 crores to INR60 crores per month and they may likely to — as per the availability of funds, they may likely to increase. That is one. And in the case of this Package 4 and other canal projects, we have not received any payments. And our payments were very, very little and then — because it has to be released from the lenders. So lenders have delayed the release of payments.

So we are also going very slow on executing those projects. So the major outstanding is, from the Package 4, we have not received substantial payment. Now they have promised that in the next two, three months, they are making arrangement with their lenders and RVC [Phonetic] is also going to release some funds, they are telling. We will wait and see how they are doing. But that’s why we have slowed down the execution there.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And just the last question, sir. In the balance sheet, this other current liabilities have reduced from INR594 crores to INR204 crores. Why is such a sharp reduction of almost INR400 crores there?

S Vaikuntanathan — Vice President, Finance & Accounts

Because what is happening is, in context of mobilized advance actually, as of March it is INR130 crores, now mobilization advance has been reduced to INR62 crores, so almost INR70 crores has been reduced there. And other than this — what are the billings, because actually, as you know that we are now working in our Kaleshwaram package where bills are getting certified. So that’s why — what are the — due to customer issues there that is also reduced. So that’s why due to these two reasons that the current liability has been reduced.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. Thank you and wish you all the best.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, yeah, yeah, thank you. Thank you.

Operator

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

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Thank you, sir. Sir, I need a couple of balance sheet numbers, sir. Retention money as on September, unbilled revenue and mobilization advance?

S Vaikuntanathan — Vice President, Finance & Accounts

The mobilization advance figure is INR62.71 crores. And retention, you are talking…

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Retention money and unbilled revenue. So last June, we said around INR178 crores retention money and unbilled was INR450-odd-crore.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. Yeah. Now retention is INR207 crores.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

And unbilled revenue?

S Vaikuntanathan — Vice President, Finance & Accounts

Unbilled revenue is around INR470 crores.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

INR470 crores? Okay. What is the console cash balance?

S Vaikuntanathan — Vice President, Finance & Accounts

That is — cash and cash balance is around INR62 crores and other bank balance is INR194 crores. So put together, around INR250 crores.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay. INR250-crores-odd. Okay. So now just to — continuing the previous questions, when we say like your current liabilities has reduced and you said the mobilization advance reduced. As on March, it was INR145 crores and now INR62 crores, so INR80-odd-crores is from that, but the reduction is on the INR400-crores-odd. So, still not able to understand why this significant reduction?

S Vaikuntanathan — Vice President, Finance & Accounts

That is also — because as you know that in execution projects, we are working but their bills are not getting certified. But as you know, our accounting is based on expenditures. We are — accounting based on expenditure, we are accounting the revenue. So due to this our dues to customer has come down actually. So as of March, it was INR348 crores, now it is reduced to INR95 crores.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay. Got it. Sir, on the guidance front now. So what’s the new guidance? Last time you said INR3,500 crores revenue, 15%, 17% EBITDA margin, though the EBITDA margin is definitely on the higher side. So what’s the new target for this year and maybe for the ’24, we were looking at 10%, 15% growth. So what’s the number now one can look at?

S Vaikuntanathan — Vice President, Finance & Accounts

You know when — actually there is a range, there is quite a…

Operator

Mr. Shravan Shah maybe — can you mute your line.

S Vaikuntanathan — Vice President, Finance & Accounts

Can you hear us, hello?

Operator

Yes, sir. Please go ahead.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. Yeah. Actually, it is quite difficult to predict what’s happening because even 15th November, 14th November, we are receiving [Indecipherable], which has become more dilemma thing for us. But however, we are trying our best to push to the commitment which we have given. But there have been certain factors as of now. We’ll have to see how best we can cope up in the future because the rainy season — the rainy season started in, I think it is started in the month of April actually. It was a little bit early. Generally May — in May we used to get — April and May we used to get as working season, but this time partial — 50% of the April month has been under rains.

And again, complete — May was under — completely under rain. So this is somehow creating huge problems because of whatever the structural works and whatever we have — we were able to do, we have done it. But when — once it comes to the road works part, due to excess moisture conditions and all that and approachability into the by-passes and all, it was bit tough for us.

So that’s way the November, I think you said October, November was bit problematic this time because the rainy season was continuing in October also as well in the November also, that is completely out of our planning really. So definitely sir, we’ll try our best, but I expect plus or minus 5% in this case. That too we have to struggle a lot to get into that zone.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

So let’s say, if — this year if you are able to do only just a 5% growth, then the next year we should be then having a 20% plus growth to pop up the delayed execution in this year?

S Vaikuntanathan — Vice President, Finance & Accounts

Obviously, the piled up things has to be completed in two years’ time, 2.5 years’ time whatever this project timelines are given. We’ll definitely try to shift towards completion times or will stick to the completion time, sir.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

So just to — sorry, just to…

S Vaikuntanathan — Vice President, Finance & Accounts

Really, both may not be possible because right now we have lost lot of working seasons in each project. So maybe we will try our best to push on date.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

So, just to touch base…

Operator

Sorry to interrupt you Mr. Shah. [Speech Overlap]

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay, no issues. Okay, thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Yeah. Good evening, sir, and congratulations on a good set of numbers. So my first question is, how much is the executive order book out of INR80 billion? Is the INR21 billion from irrigation can be classified as non-moving at this point of time?

S Vaikuntanathan — Vice President, Finance & Accounts

Actually, sir, what happened, irrigation part concerned almost INR2,000 crore worth of contracts, which are under execution. They are running in — they stood — regularly run in three shifts in all, now it’s going in one shift. And that too, we were little bit in the dilemma we are running that. I think there is some positive signals that are coming up from the pump house project. It is being considered under that loan part. So the bank loans are getting realized in coming 10 months — 10 days, sorry. Within 10 days, if we get realized, then we will try to move on with these project, as we have scheduled.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Secondly, sir, on note number 5, where you are mentioning that two up company JV has sold their pending arbitration claims. This INR24 crore has been recognized as part of the revenue in this quarter, right?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. Correct. Correct.

Mohit Kumar — DAM Capital — Analyst

And INR8 crores. So net impact is INR16 crore on the profit in this quarter — on this account. Is that correct?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, yeah. Correct, correct. What you said is correct.

Mohit Kumar — DAM Capital — Analyst

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

S Vaikuntanathan — Vice President, Finance & Accounts

Thank you. Yeah.

Operator

Thank you. The next question is from the line of Vibhor Singhal from Phillip Capital. Please go ahead.

Vibhor Singhal — Phillip Capital — Analyst

Yeah. Good afternoon, sir. Thanks for taking my question. Sir, just one small clarification regarding the last question that Mohit also asked. So, in the Point 5 that it is given in the notes, are INR24 crores is the number that has been booked in the revenue at a standalone level for second quarter?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, yeah, correct sir. INR25 crores has been added in the revenue from operation in the second quarter only.

Vibhor Singhal — Phillip Capital — Analyst

And sir, for the first half, it is written INR52 lakhs only.

S Vaikuntanathan — Vice President, Finance & Accounts

No. No. It is not like that. It is for the two JVs, because we have two JVs; Patel KNR JV and KNR Patel JVs, so these separate JV you have to consider it.

Vibhor Singhal — Phillip Capital — Analyst

Got it. So INR24 crores is the — basically that’s INR25 crores is for the — from this number. And there is also a bonus of INR7 crores, INR7.25 crores. That is point number four.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. Yeah. Correct. Correct.

Vibhor Singhal — Phillip Capital — Analyst

So totally, sir, INR32 crores of revenue is exceptional item in this quarter in the revenue, right?

S Vaikuntanathan — Vice President, Finance & Accounts

You can consider — yeah, you can consider like that.

Vibhor Singhal — Phillip Capital — Analyst

As of this INR32 crores will not have any cost, this will flow straight to the EBITDA. So this is INR30 crores of additional EBITDA also?

S Vaikuntanathan — Vice President, Finance & Accounts

EBITDA is directly INR32 crores will come, but it will have the tax impacts of around — tax impact is there. That’s all.

Vibhor Singhal — Phillip Capital — Analyst

Tax implication? Got it. So the revenue and EBITDA, both are higher by INR32 crores because of these two line items.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. Yeah. Correct.

Vibhor Singhal — Phillip Capital — Analyst

Got it. Got it. That was just my questions. Thank you so much, sir, and wish you all the best.

S Vaikuntanathan — Vice President, Finance & Accounts

Yes. Thank you.

Operator

Thank you. The next question is from the line of Faisal Hawa from H.G. Hawa & Company. Please go ahead.

Faisal Hawa — H.G. Hawa & Company — Analyst

Sir, why is our tax higher this time and what is this deferred tax? And also our employee costs have also risen quite a bit. So what is the reason behind it? And sir, how do we see the order book panning out because we have won hardly any orders this whole year and you know we may be low on orders after the next FY?

K Venkata Ram Rao — General Manager

Sir, if you see as far as the tax is concerned, so tax is almost due on the same basis, because if you see our — if net tax that we have without [Indecipherable] we are in the range of between — around 26% to 27%. So tax is on that range only. As far as employee cost is concerned, because this last year actually some of the variable pay actually we supposed to pay to the Director, so we have paid in this quarter actually. So that’s why employee cost has been increased.

Faisal Hawa — H.G. Hawa & Company — Analyst

So Director’s salary was pending?

K Venkata Ram Rao — General Manager

Pardon?

Faisal Hawa — H.G. Hawa & Company — Analyst

Director’s bonus was pending?

K Venkata Ram Rao — General Manager

Variable pay actually, which is part of their salary package actually.

Faisal Hawa — H.G. Hawa & Company — Analyst

Okay. Okay.

K Venkata Ram Rao — General Manager

So that way after our Board meeting it has been paid to the promoters. And as far as order book is concerned, right now, we have INR8,800 cores of order book and — definitely last one year, 1.5 years we have not got the order, but we have bid for our unit service.

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, actually as the bidding part concerned, the market is very aggressive this time. Fortunately, I would like to quote one of my projects where I’ve quoted 17%, wherein I was expecting only that equipment hires as my returns. The project is opened at 30% minus. So, you can understand the aggression in the market is very, very raw. At this point of time sir, I am really — actually, really scared to take an order from the market right now.

But anyhow sir, we are trying our best in different areas like Kerala, again I am striking because lot of bids are coming from Kerala as well. We were even thinking certain bids to be placed in North Eastern part of India. Even we are open to do north part of India also, even Maharashtra; even there are certain projects, the Bangalore-Hyderabad highway is also started for tendering. And certain part of projects which are Vijayawada-Hyderabad highway is also coming up and Vijayawada-Amaravati to that Bangalore highway is again connecting.

So there have been lots of Greenfield highways which are coming up right now. And I think we are on the tendering, but because of that Green Tribunal clearance is not there for these projects, I think the tendering process is getting delayed. I think you might have seen lot of tenders which are there in the November month, but subsequently every day, they are getting postponed.

So, I think they may happen in the month of Jan, Feb, I think. I’m even doubtful in the December because that Nagari project must be knowing that Nagari to the TN border, which Chittoor-Thatchur Package 3. That is there with us, which do — because of — the land acquisition is done now. I think around 70% land acquisition is there. But because of the Green Tribunal clearance is not there, so they stopped to issue the appointed date. Otherwise, this would have been added into the execution, would have given me little bit — little more comfort in achieving my target.

Faisal Hawa — H.G. Hawa & Company — Analyst

Sir, you feel that the interest cost will go down from the next quarter onwards, because now the Cube money has come and we have almost reduced all our loans and on a console basis we may be now even debt-free in the next quarter. So the interest cost will go down in next quarter?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah. We expect that by this quarter, it will go down, but we are definitely waiting for receivables from the Telangana [Speech Overlap]. So receivables are coming, then definitely we have more control on that. But as far as this quarter is concerned, it is definitely going to be reduced.

K Venkata Ram Rao — General Manager

Because of this projects, INR1,200 crores loan will be almost go out of our business.

Faisal Hawa — H.G. Hawa & Company — Analyst

Okay. So consolidated, we may be debt free on 31st March 2023?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, almost. We will have data for Muzaffarpur to Barauni and [Indecipherable] projects.

Faisal Hawa — H.G. Hawa & Company — Analyst

And is there any progress on selling of that Muzaffarpur-Barauni project also?

K Venkata Ram Rao — General Manager

Sir, actually the selling may not be possible, sir. I don’t want to keep anyone in any dilemma because you know there is — soon after the things are done, then documentation is coming, it is only our bad luck that the bridge which is connecting the Patna and this section has been under repair for a long time, I think, almost 4.5 years the revenues are down because of that. I think earlier it was clocking almost INR30 lakh per day it was patching, which has now come down to INR9 lakhs and INR10 lakhs, which is above our expectations and if we are now control also. Another one, 1.5 years they are saying that we have to wait for to the bridge to open up for the heavy — I think it’s opened for the small moving vehicles, but it is not for the goods vehicles.

Faisal Hawa — H.G. Hawa & Company — Analyst

Sir, how many claims are totally pending now, totally…

K Venkata Ram Rao — General Manager

[Speech Overlap] commercial vehicles only. So this the [Speech Overlap]

Faisal Hawa — H.G. Hawa & Company — Analyst

Sir, how many claims are pending now sir totally? How many claims are pending totally now? Towards NHAI, what is the total amount of claims pending and with arbitration as on-date?

K Venkata Ram Rao — General Manager

INR500 crores almost.

Faisal Hawa — H.G. Hawa & Company — Analyst

Plus interest?

K Venkata Ram Rao — General Manager

Including interest.

Faisal Hawa — H.G. Hawa & Company — Analyst

Okay. Okay. Thank you, sir.

K Venkata Ram Rao — General Manager

Thank you.

Operator

Thank you. The next question is from the line of Veenit Prasad from Investec. Please so ahead.

Veenit Prasad — Investec — Analyst

Good afternoon, sir, and thanks a lot for the opportunity. Sir, I — sorry to harp back again on the current liabilities bit. Just wanted to understand a bit better whether the dues to customers line items, which we report. Is it appeal to the trade payables or how does the accounting really works it?

S Vaikuntanathan — Vice President, Finance & Accounts

[Indecipherable] customer is accounting like that, actually because you know our accounting systems is based on expenditures. So what are the expenditure we are doing, plus what are our expected margin for the project, that we will recognize in the revenue actually. Suppose some certification is not happening, so in case of whatever the difference is there, it will reflect into due to customer and due from customer.

So based on that, because the last March actually, it was actually more our due to customers were there, but now, lot of work we did actually in the irrigation project basically in the even Q1 we did good work, actually around 35%, definitely Q2 is only 16%, but there is not much certification of the bill. So that’s why our due from customer as — due to customer has been reduced actually. And it has gone to due from customer. So this is our accounting policy. And if required, we will have a separate discussion on this actually.

Veenit Prasad — Investec — Analyst

Sure. Sure. Sir, I’ll touch base with you separately on this.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah.

Veenit Prasad — Investec — Analyst

Sir, secondly, if you can spell out, you mentioned about bidding being aggressive. But is that the case even for HAM projects or it is predominantly for existing ones?

S Vaikuntanathan — Vice President, Finance & Accounts

Pardon, question — your voice is little bit not clear actually.

Veenit Prasad — Investec — Analyst

Sir, I was asking about the bidding and the competitive intensity. You answered to one of the participants stating that bids continue to be aggressive. Is that the case even for HAM projects or it is predominantly in EPC and…

S Vaikuntanathan — Vice President, Finance & Accounts

HAM and EPC projects are on the same. And HAM projects, I think we are expecting some modification of the bidding criteria that has to come, but the competition is for both, the adverse season is for both.

Veenit Prasad — Investec — Analyst

Okay. Understood. Understood. Okay, thanks a lot, sir. Thank you so much.

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, thank you.

Operator

Thank you. The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Sir, good afternoon. Sir, just a follow-up question on the aggression in the bidding. So, sir, what order inflows we’re targeting now for this year considering the bidding environment, which you yourself mentioned is very aggressive? So what’s — and even form the road side, we have not seen any major orders being awarded. So what’s the outlook, sir, on the order inflows for this year?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, actually, looking at our programs, internal programs, our growth strategies, we would be targeting to get around INR3,000 crores to INR4,000 crores order inflow in coming year, full year. This is our target, sir. And more or less, we are placing bids. Definitely, as I earlier told you that market is very aggressive and they are taking at a wrong price. If I say it — for me it is wrong, but I don’t know they might be feeling that it is workable for them.

We will have to see, sir, because time will tell. Nobody will be able to gauge it as of now. And as of now the — even in structure, that new quoting in place, where the cost of structure — each structure is going up by 30% and sometimes 20%, sometimes 30% than the normal quoted provisions. So with all these difficulties, definitely the cost of the projects should go up. There is no doubt. But going down to 30%, 25%, 20% levels, which is not a healthy sign that is happening in the industry.

Really, if any company picks up in a project there, okay, sometimes it is viable, but sometimes it is — most of the times it is not. Earlier cases we have taken some projects at 25% and we have completed successfully with profit. But it is not the case with every project to be like that. So proper estimates and proper ideology, proper designing should go in to each bid, then only things will be clear for us. And the bidding pattern, how people are taking up because maybe I think — because of that eligibility norms, which have been — the Government of India has liberalized, I can say the word liberalized is right, because any irrigation projects people they can bid — any person who is coming from building project sites, they can come and bid on to roads.

But whereas if I want to go and bid in an irrigation project, they will ask me a similar work you have, then only you’re eligible. So the industry is heading in a wrong kind of phase. So that’s how many number of players are coming to this place and they really don’t know what is the rule, and they are placing the bids, which is creating to me havoc in this market, sir. This is my opinion. I don’t have any sort of — I think I’m not trying to say someone is doing wrong or something, but it is — to me, it is my opinion.

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Sure. Sure. And sir, so people have been talking about the aggression coming down and especially in the road projects. So, in your opinion, you have not really seen any sort of an aggression slowdown?

S Vaikuntanathan — Vice President, Finance & Accounts

Actually, I think I was the one which, I have told you in the last meeting.

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Yes. Correct.

S Vaikuntanathan — Vice President, Finance & Accounts

The last same con call, I told you that aggression is coming down because I have seen very few bids, which have come down when I was attending before I think in the meeting. I think one week ago, I have seen two, three projects, which have gone at a very reasonable price and they were even near equal to my workings also. But then I was thinking market was going there. But once — recently whatever the bids are opened, and — I’m not even alone. I mean in somewhere in the last. So where I’m now thinking — and I recalculated. See, sir, once I fail in a bid, definitely what I do, I come and do a home work where I have done something mistake.

Really, am I going somewhere wrong? Am I not catching up the market because of the new conceptual designs or am I not trying to take the latest concepts of construction methodologies by which I am not cutting costs and everybody is cutting the costs. So, we have really engaged the consultants and top notch consultants and we are seeing. Everything we made a trial. Then after that, the conclusion is, my conclusion — I’m not saying the market conclusion or someone’s conclusion. According to me, market is at now — strong aggression is going in the market now.

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Sure. Just last question, sir. So, sir, irrigation projects, you mentioned about INR50 crores, INR60 crores you’re receiving every month. So how we’ll see the execution now here? Are we looking to execute nearly a similar run rate in the coming months or because — just some outlook on how the execution in the irrigation will proceed from here?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, that is happening. If the Pump House projects, as I earlier told you that around — the Pump House project outstanding is about, say INR350 crores is there. Now I think INR300 crores is under consideration. If we get this payment within 10 days; definitely, things are going to be streamlined and I am bit confident of achieving the targets also. But here the thing is, my gut feeling is everything should go well actually, because the department is — I think that four, five days back, they’ve been informing us that, yeah, you can go ahead with the project because the project is getting admissible into the bank loans.

So one of the good news, which we are thinking, but unless we realize the payment, we cannot believe these guys. If the department, they say everything, but nothing was coming through all these days. So definitely, we were going in the same phase of — out of three shifts, we are working on one shift and trying to keep. And whatever the payments they are giving us, that same thing we are putting back also. It’s not that we are utilizing for some equity investors or somewhere, nowhere we are investing. We are again investing back to the same old projects. So that also we have highlighted to the department. You give money, same thing we will put back.

Alok Deora — Motilal Oswal Financial Services Ltd — Analyst

Okay. I think that’s all from my side, sir. Thank you and all the best.

S Vaikuntanathan — Vice President, Finance & Accounts

One time [Phonetic] project, I think INR60 crores usually, which is — every month we are getting. I think it will get closed maybe every month, two months, three months’ time at least.

Operator

Thank you. The next question is from the line of Parvez Qazi from Edelweiss Securities. Please go ahead.

Parvez Qazi — Edelweiss Securities — Analyst

Yeah. Good evening, sir, and thanks for taking my question. So first is, for the Chittoor-Thatchur project, by when do we expect to get the appointed date?

S Vaikuntanathan — Vice President, Finance & Accounts

Pardon, sir? Chittoor-Thatchur, sir, actually the land acquisition is concerned, the achievement is about 72% that we achieved as of now. But we were ready to take it also because we have continuity for 50% of the road highways. I think there had been certain — actually land payments were given, but there is some crop cutting payments are not given. So there — those things are also we are considering for 80% thing, where crop payments and that can be — if they have not given, at least we can proactively pay them and get that things done. So with that gut feeling, we have approached the department that, okay, we will take the appointment date. But department, now they say that they don’t have the NGT clearance. So now, I think NGT clearance is awaited in, say, by month end. We’ll have to see, sir.

Parvez Qazi — Edelweiss Securities — Analyst

Got it.

S Vaikuntanathan — Vice President, Finance & Accounts

This another thing is now the rainy season is started, Chennai and everywhere, it is completely rainy. So the complete Greenfield highway where complete efforts are in place. So initially, I need a dry time also. So even if December passes away, it doesn’t matter. But if they give us in first week of — very early weeks of January also, we will be completely doing it for three months to catch up into this last quarter.

Operator

Thank you. The next question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead.

Nikhil Abhyankar — DAM Capital — Analyst

Thanks for the opportunity, sir. Sir, in continuation to the question earlier regarding the irrigation segment. Sir, are the payments going to come only if the lenders approve the loan to the government SPV or the government is also willing to put in its money to the payments?

S Vaikuntanathan — Vice President, Finance & Accounts

Pardon. Pardon, sir?

Nikhil Abhyankar — DAM Capital — Analyst

Sir, the payments are going to come only if the lenders approve the loans to the SPV government, SPV or…

S Vaikuntanathan — Vice President, Finance & Accounts

Yes, sir. If lenders are — I think lenders are accepting what — that’s what is informed to us by the department because, definitely, we don’t have an access to these bankers also. So, it is the, issues is. We’ll have to rely upon these guys. I think within 10 days, if we are getting paid, then definitely sir, we’ll inform you that we are getting paid, then this will become okay.

Nikhil Abhyankar — DAM Capital — Analyst

And sir, any specific reason why it is delayed, the approval?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, actually what happened, earlier the dilemma was that whatever the pump house we are doing, this is coming under additional provisions, additional capacity. But the Irrigation Department says that, no, this is not an additional capacity, this is well within the schematic project earlier planned. So that’s where the department needs to give some technical explanation to bankers and everybody and convince them to get the loan. As it is — earlier it is approved. Only the Central Government intervention, they’ve stopped it. Now everything go — if they convince them, then things are getting okay. So once they inform that it is being considered by the banks, so we can hope something on it. But unless we receive, we will not believe anything out of it. That is the — there is no doubt in this, sir.

Nikhil Abhyankar — DAM Capital — Analyst

Understood. Sir then, can you just mention the order pipeline for H2 FY ’23 and the quantum of bids, which we have already bid for?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, actually, we have bided almost — INR3,000 crore is now bided in the Kerala state itself, which is yet to open. They have not opened the tender. I think another one is there in this — in Telangana, they’ve opened all the tenders. No, we didn’t get any money. So only one is there. Bangalore-Vijayawada. So, I think INR4,000 crores is under — yet to open kind of thing.

Operator

Sorry to interrupt. May we request Mr. Abhyankar to please rejoin the queue? We have participants waiting for their return. Thank you. The next question is from the line of Ash Shah [Phonetic] from Elara Capital. Please go ahead.

Ash Shah — Elara Capital — Analyst

So, could you just provide some update on the IT department raids that were — so in the last — the department will submit some appraisal report, and then probably they might come for — they might clear out the matter? So if you could just provide some update?

S Vaikuntanathan — Vice President, Finance & Accounts

See, we are yet to receive any notice from the department. We understand that whatever the initial investigation was done, they have submitted the report to the respective assessment division and the assessment division is yet to — they are in the studying and the notice has not yet come. Unless otherwise the notice comes, there is no obligation on our part. Then we will act accordingly.

Ash Shah — Elara Capital — Analyst

Okay. And there was one more thing. So if I see your opening order book for this quarter and your closing order book, the execution amount comes out to INR544 crores, whereas the revenue that we have booked is around INR820 crores without the additional one-offs. So could you just provide the difference? I mean why is such a huge difference?

S Vaikuntanathan — Vice President, Finance & Accounts

Because, sir — as I told you, because our turnover is based on our expenditure actually, it is not based on the difference of order book. So what has happened in this quarter actually, we did actually work for other projects actually where bill has not certified, especially in the irrigation, we did around 16% of work, but there is no certification in the irrigation. So that’s why the difference is due to that reason.

Operator

Thank you. The next question is from the line of Prem Khurana from Anand Rathi. Please go ahead.

Prem Khurana — Anand Rathi — Analyst

Yeah. Thank you for taking my question, sir. So again on irrigation only. So, I understand, I mean Kaleshwaram 4 is kind of funded project and there is a lender in place. But I think Kaleshwaram 3, so the payments were supposed to be released by the government from the budget. So any commitments from the government authority on Kaleshwaram 3 because it is not that they need to rely on lenders to be able to fund the project? I mean, essentially, you were supposed to rely on the budget only. And we used to have some issue in terms of work front with this package, right, earlier. So, has that been resolved?

S Vaikuntanathan — Vice President, Finance & Accounts

This is — definitely Package 3 is through budgetary support. But as I — already we told you, we are following the department and department has promised every month at least INR50 crores, they will release. Right now, actually they are considering the Vettam actually and they are releasing that payment. And once Vettam liability will clear, definitely we’ll push for this Package 3 also with them actually. So definitely because we have to also see how department is working. So, definitely we are expecting that after this Vettam will close, we will start working on Package 3 also and try to receive the money like that. That is one.

Prem Khurana — Anand Rathi — Analyst

Sir, land, I mean if it is — is it available right now. [Speech Overlap]

S Vaikuntanathan — Vice President, Finance & Accounts

That is Package 3 actually. Because Package 3 is most of the canal work. So out of almost — around 50% land is there. So on that we are doing the work actually.

Prem Khurana — Anand Rathi — Analyst

Sure. And sir, possible to share, I mean the order backlog that you gave in your presentation, is it possible to kind of break it down project-wise in the irrigation projects?

S Vaikuntanathan — Vice President, Finance & Accounts

Yes. You can ask, we can provide it.

Prem Khurana — Anand Rathi — Analyst

Sure, sir. I will take it offline. Thank you.

S Vaikuntanathan — Vice President, Finance & Accounts

Okay, thank you.

Operator

Thank you. The next question is from the line of Uttam Kumar Srimal from Axis Securities. Please, go ahead.

Uttam Kumar Srimal — Axis Securities — Analyst

Yes, thanks for the opportunity, sir. Sir, what is our capex guidance for FY ’23 and FY ’24?

S Vaikuntanathan — Vice President, Finance & Accounts

Actually, as far as capex is concerned, this year we did around INR75 crores of the capex, up to six months. So in this quarter, we did around INR15 crores of the capex. And we expect that there may not be much requirement for the capex. We said what are the — if any project is also coming, it will take at least next year to start. So this year guidelines will be somewhere around INR100 crores to INR120 crores is the maximum capex that we are going to use.

Uttam Kumar Srimal — Axis Securities — Analyst

And sir, for next year?

S Vaikuntanathan — Vice President, Finance & Accounts

Pardon, sir, for next year? So next year definitely, based on this — how the project is coming actually because we have to just work. Because we know that it’s — already six months is over. If any project is coming also, definitely that is not going to take off in this year. So it will take off from next year only. So that next year capacity based on the — when we will receive a project, we will work out and we will inform accordingly.

Uttam Kumar Srimal — Axis Securities — Analyst

Okay. And sir, what is our current tax rate?

S Vaikuntanathan — Vice President, Finance & Accounts

Current tax rate, we are in 25% tax regime. We have opted the new tax regime.

Operator

Thank you. The next question is from the line of Devansh Goenka from Fusion Clothing. Please go ahead.

Devansh Goenka — Fusion Clothing — Analyst

Thank you for taking my question. I just wanted to understand the Bharatmala project of the government. Do you foresee more project wins coming through Bharatmala?

S Vaikuntanathan — Vice President, Finance & Accounts

Yeah, the government is planning to add more projects under Bharatmala. They have done the project report also and then the minister also has given a statement that they are planning some 12,000 kilometers. The only thing is that we have to wait for them. They have to arrange for the clearance of all this ROWs and other things and also the funds by NHAI. And we hope that it should come forward before the next November, because the November is the set up line before the election, they have to release all the orders. So it should come definitely.

Devansh Goenka — Fusion Clothing — Analyst

And just one more question. I just wanted to understand your margin — operating margin outlook for the next quarter — the next financial year, if you can give some guidance on margins?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, margins will be [Foreign Speech] this half year, we did achieve around — if you take out this extraordinary item, we are at somewhere around 18.5% to 19.0%. So, we expect that we should be able to maintain that between 18% to 19% margin for this year. And next year also, we will try to maintain the same.

Devansh Goenka — Fusion Clothing — Analyst

Okay, thank you. That’s all. Thank you.

S Vaikuntanathan — Vice President, Finance & Accounts

That’s great.

Operator

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

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Hi. Sir, just wanted to understand a bit more in terms of the individual specific projects. So two Kerala HAM projects, the big one where close to INR2,992 crores, so INR3,000 crores order book is pending. In the first half, we have done close to INR261 crore execution. So how do we see our execution in the second half? And previously, we are looking at around 40% execution in this year. And the next year, how do we see the execution from this particular two HAM projects?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, definitely, we — initially we told that around 40% we’ll do, but you know that this year due to these incessant rains, we could not able to achieve that. And as of now also, Kerala, till October end actually it was raining only. But definitely, we have — now rest almost 4.5 months. So, we will try to — if there is no rain, definitely we will try to achieve that and we are expecting in the second half, we will do definitely most of the turnover from these two Kerala projects. So, we are targeting towards that only. And definitely next year, we will be used — actually, next year we will be almost…

K Venkata Ram Rao — General Manager

The Backlog whatever is there.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

So mostly by next year, we will be completing these — both the HAM projects?

S Vaikuntanathan — Vice President, Finance & Accounts

Yes. We have time till January actually, ’24. July 2024, we have time. So definitely we will try to — March ’24, we will try to — definitely we will try to do that, because we have to see — yes, we cannot say as of now because of rains, you know provided it’s not rainy — unseasonal rains also like [Speech Overlap]

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

True. True. Second is on Avinashi Elevated Highway. There also we have a INR758 crores order book. In the first half, we have done only INR50-odd-crores. So how do we see? And what’s the completion deadline for this?

S Vaikuntanathan — Vice President, Finance & Accounts

Avinashi Elevated Highway? Deadline?

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Avinashi Elevated Highway.

S Vaikuntanathan — Vice President, Finance & Accounts

Yes, sir. Actually, the — at instant time is another two years is there. I think we will complete it.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay. So this first half we have done only INR50 odd crores. In the second half, we will — how much we are expecting to do?

S Vaikuntanathan — Vice President, Finance & Accounts

Sir, actually every month, it is around — clocking around INR35 crores to INR45 crores, sir, little in between. Recently we have added one more launching system. Due to that another INR10 crores to INR15 crores is likely to go up. But, however, this will be from December only, not from February.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay.

S Vaikuntanathan — Vice President, Finance & Accounts

[Indecipherable]

Operator

Sorry to interrupt you, sir.

S Vaikuntanathan — Vice President, Finance & Accounts

Launching system, we have added in the November I think, — so those will come into operation will be in December.

Shravan Shah — Dolat Capital Market Pvt Ltd — Analyst

Okay. Okay. Okay. Got it.

S Vaikuntanathan — Vice President, Finance & Accounts

I think we said it is not regular schedule timing, sir. We are achieving every milestone which are fixed by the department. In fact, actually there have been certain hurdles in the department side also. There have been some obligatory flats — obligatory foundation places, they are not able to provide us because there is a thick traffic that is moving around. So they are making some alternate arrangements. They say they will need time, they need time and they never gave us that position around — those foundations are still pending. And they are coming on the way. So you know that launching system, once it is hurdled, at least it will take 25 days to 30 days to ship the launching facility to the other locations. So, that’s where we are losing the time, which we were highlighting them also. It’s completely departmental fault is bearing on [Phonetic] us.

Operator

Thank you. The next question is from the line of Bharani Vijay Kumar from Spark Capital. Please go ahead.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Yeah, good evening, sir. So, this reduction in this liabilities to the tune of INR300 crores, INR400 crores, due to the delays in certifying bills. So when would it be reflected in the P&L? That is, when would the revenue corresponding would be recognized?

S Vaikuntanathan — Vice President, Finance & Accounts

Revenue is recognized already. It will, again, the balance sheet entry. Once this certification will come, so accordingly, this is due to customer and it will at the same time due to us. Revenue is already booked. Based on expenditure, revenue is booked. And now if certification is happening, based on that or due to customer or due from customer will be accordingly adjusted.

Bharanidhar Vijayakumar — Spark Capital — Analyst

So now what will be the adjustment that will happen, it will be due from customers?

S Vaikuntanathan — Vice President, Finance & Accounts

It will be around — in irrigation around INR450 crores will be there. So that certification is pending to that set of INR450 crores. So INR450 crores will be reduced in our order book exchange.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. Okay. That’s it from my side.

S Vaikuntanathan — Vice President, Finance & Accounts

Okay. Right.

Operator

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

S Vaikuntanathan — Vice President, Finance & Accounts

Thank you all for joining us on this call. Please reach out to our IR Consultant, Strategic Growth Advisors or us directly, should you have any further queries. We can now close the call. Thanks you.

K Venkata Ram Rao — General Manager

Thank you.

Operator

[Operator Closing Remarks]