NCC Limited (NSE:NCC) Q1 FY23 Earnings Concall dated Aug. 10, 2022
Corporate Participants:
P. V. Vijay Kumar — Vice President, Finance
Krishna Rao — Executive Vice President, Finance & Accounts
K. Durga Prasad — General Manager, Finance
Neeraj Sharma — Head of Strategy and Investor Relations
Analysts:
Mohit Kumar — DAM Capital Advisors Limited — Analyst
Vibhor Singhal — Phillip Capital — Analyst
Shravan Shah — Dolat Capital — Analyst
Nikhil Abhyankar — DAM Capital — Analyst
Ashish Shah — Centrum Broking — Analyst
Deepak Poddar — Sapphire Capital — Analyst
Rohit Natarajan — Antique — Analyst
Meet Parikh — Anand Rathi — Analyst
Saket Kapoor — Kapoor & Company — Analyst
Nikhil Kanodia — HDFC — Analyst
Parvez Qazi — Edelweiss — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q1 FY23 Earnings Call of NCC Limited, hosted by DAM Capital Advisors. [Operator Instructions]
I now hand the conference over to Mr. Mohit Kumar from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Mohit Kumar — DAM Capital Advisors Limited — Analyst
Thank you, Aman.
On behalf of DAM Capital, we welcome you all to the NCC Q1 FY23 earnings call.
From management today, we have with us, Shri Krishna Rao, Executive Vice President, Finance and Accounts; Shri P. V. Vijay Kumar, Vice President, Finance; Shri Neeraj Sharma, Head of Strategy and Investor Relations; and Shri K. Durga Prasad, General Manager, Finance.
Without much delay, I’ll hand over the call to the management for their opening remarks, which will be followed by Q&A session. Over to you, sir.
P. V. Vijay Kumar — Vice President, Finance
Good afternoon, everyone. Welcome to NCC quarter one FY23 earnings investor call. I thank each one of you for taking time to attend this. I hope I am audible properly.
Before we start, I will just spell out a small disclaimer clause and then we shall go into the subject. The statements made here or in the presentations uploaded by the Company are to our best of knowledge true, and any forward-looking statements are subject to certain factors beyond control of the Company officiants and management. And hence, the audience are advised to use their discretion in their own analysis accordingly.
Now, we shall go into taking the performance of the Company for this Q into account. I will briefly start with opening remarks followed by Q&A. I have my colleagues CFO Krishna Rao garu, GM Durga Prasad garu, and Neeraj, Head, Strategy and Investor Relations, present in the call, who may take your questions eventually. Considering the time limitation, we request the audience to limit to one or two questions per person.
Okay. We’ll come into the main subject now. Our economy has shown its dexterity in passing through tough challenges in the last two years. You’re all aware of that. As you may recall, NCC after posting degrowth of 13% in FY21, it has decently raised back in FY22, posting 37% growth. In many sectors we see near pre-COVID level of activity. However, while the pandemic is still around, geopolitical tensions are affecting the ambience of our economy. A strong growth momentum pushed the real GDP in Q3 of ’21-’22 to 106% of pre-pandemic Q3 output of 2019-’20. Also, GST collections during April 2022 stood at INR1.67 lakh crore, registering a double digit growth of 20% compared to corresponding period last year, and 46.7% higher than the corresponding pre-pandemic level.
India’s economy grew 7.5% to 8% in FY22, and is expected to grow 7% to 7.5% in FY23. Future going forward, it seems government is rightly supporting the infrastructure segment, construction segment as well. In the recent budget, you can see the government giving a lot of thrust on infrastructure spending and weighed it as a good option to drive consumption and growth in the economy. The economic survey also observed that gross fixed capital formation exceeded pre-pandemic level on the back of ramped up public expenditure on infrastructure. The government has also emphasized on expanding road network and more emphasis on giving boost to PM Gati Shakti plan and PM Aavas Yojana as well.
You may note that NCC’s order book comprises of 57% from Buildings division, 18% from Water & Environment division, and rest in Roads, Mines and Electrical, etc. So, we are well placed to encash these opportunities. Notwithstanding all this good news, the economy is facing still challenges in terms of high inflation, falling rupee, supply chain disruption, pressures on commodity prices, etc. However, I may mention that NCC is well placed in terms of its contract execution and we have adequate protection in terms of the contract provisions. Considering all this, NCC is well placed in terms of order book at a level of INR40,616 crores. We have started this quarter by bagging INR4,456 crores of contract in this quarter. The main order during the quarter bagged is wastewater treatment plant at Malad, Mumbai, which has INR3,833 crores of EPC component. Of course, it has O&M component of INR1,854 crores as well.
I will touch upon briefly the financials for the Q1 FY23 now. We have achieved a top-line of INR2,990 crore, with an EBITDA of INR281 crore, and PAT of INR120 crore. This means we have recorded a growth rate of 56% in top-line, and 132% in bottom-line. EBITDA levels remained at 9.51% compared to 10.55% in the previous year. Slight dip in EBITDA margins is on account of increased material cost. However, compared to previous quarter, the EBITDA margins improved by 100 bps, mainly on account of mellowed down increase in material costs in the first quarter. Though the overall financing costs increased from INR103 crores in corresponding quarter last year to INR108 crores during the Q1 FY23, the revenue has increased by 56%, and hence, the effect below EBITDA is positive. And hence, you can see the PAT margin also increasing. Our overall debt remained at INR1,707 crores as against INR1,936 crores at the end of FY22.
I may indicate here that 3.63% of revenue remained as a financing cost. So, if I can share you — share with you the breakup of financing cost: LC charges stood around INR7.05 crore; our BG Commission stood around INR23.11 crores; interest on CC WCDL stood at INR30.82 crores; interest on term loan, INR4.14 crores; interest on mobilization advance stood at INR27.21 crores; and balance, others.
I may also share that promoters have brought in INR106 crores towards subscription of warrants issued to them. This indicates the conviction of promoters in the business. With a proposed subscription, the promoters’ holding will stand at 21.11% of total holdings.
As at the end of the quarter, receivables stood at INR2,395 crores compared to INR2,492 crores in the previous quarter. The reduction is mainly on account of improved collection of receivables. The receivables period has come down from 125 days same quarter previous year to 94 days of the quarter ended FY23. This resulted in efficient turnover of working capital cycle. We have drawn INR1,487 crores of CC WCDL limits from banks. Compared to previous quarter, this is higher by INR522 crores. As you are aware, RBI has increased the repo rates during the quarter three times. We are yet to see any immediate increase in interest rate so far as much of the loan portion is in WCDL form. Interest coverage ratio for the quarter stands at 2.88 times while it was 2.05 times same quarter previous year.
As you are aware, the last quarter, we have successfully completed divestment of NCC Vizag Urban, which holds about 98 acres in Vizag. The cash flow out of divestment are expected to accrue this year; about INR150 crore during the year and loan repayment of INR318 crores in next two years’ time.
If I may touch upon briefly the consolidated financials also, we have registered INR3,351 crores of revenue and PAT of INR130 crores, which is 61% and 160% higher compared to the same quarter previous year. At consolidated level, basic EPS stands at INR2.13 as against INR0.82 in the corresponding quarter previous year.
Coming to the last part of my briefing, we remain bullish on our economy considering infrastructure spend driven growth. However, this is challenged by geopolitical tensions, global financial market conditions, international commodity market dynamics, etc., which will drive the trajectory of the economy. Still, we have the threat of pandemic around looking to the health emergency declared by US and lockdown implemented by China.
Our Board has mulled over the outlook and has felt it is prudent to watch and wait before we crystallize on the guidance part. Though the immediate guidance is not available at the end of this quarter, maybe, I personally feel, EBITDA levels more or less should continue and PAT is likely to be at the improved level as this quarter. And of course, top-line, possibly, it may hover around 15% to 20% range of growth. However, we still have — yet to crystallize the numbers at the Board level and then we’ll have to — yet to furnish these numbers to you guys.
With this brief, now, I will hand over to my colleagues, and we are open to questions now. We’ll take questions. I request one or two questions per participant. Please consider we are there for next 45 minutes here. And I open the forum now to open the questions.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] We have the first question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah — Dolat Capital — Analyst
Thank you, sir. And first of all, congratulations on a great set of numbers. Sir, my first question, [Technical Issues] that still we haven’t crystallized in terms of the guidance, but still just trying to understand 15% to 20% revenue growth that — do we see that is on the much lower side? And likely, we can surpass that number? And on the EBITDA margin front, on the full-year basis, can we see a 10% number at least?
P. V. Vijay Kumar — Vice President, Finance
See, the exact guidance is not provided by the Board yet. But however, looking to the trend, 15%, 20% is a safe figure to assume in the top-line. The EBITDA stood at 9.5% this quarter. And as you have rightly assumed, possibly, it has a basis, we may continue at the same levels to 10% or something like that. And with the improved turnover, the PAT margins also are likely to improve. We are at now 5.28% — sorry, 4.01%. This may also hover around 4.5%.
Shravan Shah — Dolat Capital — Analyst
Okay. And other question is in terms of the order inflow. So, including the recent one, the July one, so, around I think INR6,100 crore order is already there. So, for the full year, last time, we were said that around INR14,000 crore, INR15,000 crore kind of inflow are we looking at. So, what’s the update on that? And I need a couple of data points, particularly on the balance sheet side. So, what’s the standalone gross debt and unbilled revenue and subsidiary order book in the console order book number that we have given?
P. V. Vijay Kumar — Vice President, Finance
Okay. See, as far as the order book is concerned, now, it is a net figure what we have given to you, INR4,000 crore odd. And of course, I have expanded it briefly in my initial introduction, there is an O&M component of — there is a majority component INR1,854 crores. And this trend is likely to continue. We are — compared to last year, it was much higher than the order book position what we have — orders what we have bagged in the last year.
Now, coming to your other questions, your — gross debt position, right?
Shravan Shah — Dolat Capital — Analyst
Yes. So, gross debt, unbilled revenue, and subsidiary order book, so that was around INR3,058 crore as on March. So, what’s the number as on June?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes. With regard to the orders of the subsidiary companies, we have executed during the quarter INR265 crores turnover. And now at the end of the quarter, it stands at INR2,778 crores. There may be a possibility of INR1,000 crore or so to get an order to this by the end of the financial year.
In regards to unbilled revenue, we have at around INR2,800 crores unbilled revenue. And unbilled revenue is — the more we execute the number of projects, the unbilled revenue is going to increase further. And more particularly, this is two reasons. One is that with regard to the UP projects where the billing pattern has been changed. For every village Gram Panchayat, we need to submit a separate bill, that is why it is going to go up; number one. With regard to the other project cities, a stage-wise billing, thereby, we need to wait for the completion of the stages and protocol. These are all that — with regard to the unbilled revenue.
And coming to the debt movement, debt stands at the beginning of the financial year is INR1,184 crores. And we have taken — because of 56% more in revenue growth, we have drawn around INR547 crores working capital and we too have repaid missionary and other loans to the tune of INR24 crores. So, net debt stands at the quarter is INR1,707 crores. That is with regard to the standalone. And the consolidated level, there is a reduction in Urban to the tune of INR33 crores. So, with regard to that consolidated debt at the end of the quarter stands at INR1,753 crores. So, the reduction in the quarter by INR450 crores.
Shravan Shah — Dolat Capital — Analyst
Okay. Thank you, and all the best, sir.
Krishna Rao — Executive Vice President, Finance & Accounts
Thank you.
Operator
Thank you. The next question is from the line of the Vibhor Singhal from Phillip Capital. Please go ahead.
Vibhor Singhal — Phillip Capital — Analyst
Yes, good morning, sir. Thanks for taking my question. Sir, just continuing on the debt part, so now that we have reached debt of around INR1,700 crores level, up more than INR500 crores from the last quarter ending of INR1,200 crores approximately, how do you see this debt proceed through the year? What are we looking at to — as the year ending debt figure for us?
P. V. Vijay Kumar — Vice President, Finance
See, if you have observed during this quarter and last quarter also, the debt has substantially come down. That is mainly on account of the faster, efficient turnover of the working capital cycle, we are less dependent on the debt. Going forward, the same trend will continue. We are — at this level, we will continue to have the same level. However, we are optimistic that there can be a slight reduction also.
Vibhor Singhal — Phillip Capital — Analyst
So, you’re expecting debt could be at INR1,700 crore level at the end of the year, but maybe there is some reduction?
P. V. Vijay Kumar — Vice President, Finance
See, there could be a reduction, because we are not providing you the exact guidance in terms of revenues and profitability. I will not be able to exactly comment upon what would be the debt level too. So, going by the general expectation of 15%, 20% growth in the operations and reduced operating cycle, there could be possibly a reduction.
Vibhor Singhal — Phillip Capital — Analyst
Got it, sir. And sir, from the Vizag liability, how much cash have we received till now, and how much cash are we expecting in this year?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes. This is as of 31st March 2022, we have received a INR47.5 crores. And as per as the shareholders agreement, the secondary tranche is due in September ’22, that is INR52.25 crore; and December ’22, the same amount, third tranche; and the last and fourth tranche is by March ’23. INR152.5 crore is expected to realize in this financial year.
Vibhor Singhal — Phillip Capital — Analyst
Okay. So, this — the announcement that we had made at the time of the land deal, those milestones remain the same? September, December and March, each of the three dates, we should receive around INR50 crores in this year?
Krishna Rao — Executive Vice President, Finance & Accounts
Correct. And with regard to — that is with regard to the equity, and there is a loan component to the tune of, as of March, INR310 crore. As per the agreement, we are expected to get realization in two years, that is on or before March 2024 with 10% monthly compounded interest.
Vibhor Singhal — Phillip Capital — Analyst
Got it. Sure. And in two years that debt will be repaid?
Krishna Rao — Executive Vice President, Finance & Accounts
Sure. Yes.
Vibhor Singhal — Phillip Capital — Analyst
Fair enough. Got it, sir. Also, sir, so, if I could just get the order book breakup, if possible, in terms of different segments?
Krishna Rao — Executive Vice President, Finance & Accounts
You wish to have a division-wise?
Vibhor Singhal — Phillip Capital — Analyst
Yes. Division breakup of the INR40,000 crore order book that we have?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes. Building division, INR25,302 crore stands at 62%; roads, INR908 crore, 2%; water and railways, INR6,565 crores at 16%; electrical, INR2,641 crores, 7%; and Irrigation, INR1,070 crore, 3%; mining, INR3,888 crores, 10%; all others put together, INR250 crore at 1%. This totaling to INR40,616 crores at the end of [Technical Issues].
Vibhor Singhal — Phillip Capital — Analyst
Got it, sir. Sure, sir. Sir, just one last question from my side. Sir, we were very optimistic about the bullet train project between Mumbai and Ahmedabad earlier, but almost all the parties at Gujarat were, of course, taken by larger companies. Now, that the land acquisition process has started in the state of Maharashtra, are we looking to bid for those projects? And are we hopeful of getting any contracts on that project?
Neeraj Sharma — Head of Strategy and Investor Relations
Yes. See, this is Neeraj Sharma. You have rightly summed up the development of the past. But going forward, we are quite hopeful, but our considered view on this subject is, it will be — take lot of time for the project to come up for bidding. But as and when the project comes up for bidding, we would be very much interested to put our bid on the table.
Vibhor Singhal — Phillip Capital — Analyst
Sir, there is one bid for the underground station at BKC. Are we looking to bid for that?
Neeraj Sharma — Head of Strategy and Investor Relations
No. That one and maybe the C3 package, the package that is going to come up in the state of Maharashtra, there is a big bid due, and we will also consider that tunnel part. This road, this track needs to be — go underground from the Mumbai. We will definitely look at that project too. And as and when this comes for bidding and we’ll see. So, there are a couple of packages that is still expected to come up for bidding in about, let us say, about six to 12 months’ time.
Vibhor Singhal — Phillip Capital — Analyst
Got it, sir. Thank you, sir. Thank you so much for taking my question, and wish you all the best.
P. V. Vijay Kumar — Vice President, Finance
Thank you.
Operator
Thank you. Our next question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead.
Nikhil Abhyankar — DAM Capital — Analyst
Thank you, sir, and congrats on very good set of numbers. I just wanted to know our group exposure to the company is in the tune of around 13 billion. How do you see this number by the end of the fiscal year? Are there any reductions possible in it?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes, the total exposure to the Group stands at INR1,302 crores end of March 2022, which has substantially come down from — I’m sorry, one second. Just hold on. You are talking about exposure to the group companies, right?
Nikhil Abhyankar — DAM Capital — Analyst
Yes.
Krishna Rao — Executive Vice President, Finance & Accounts
Okay. Exposure to the group companies as at the end of June 30, 2022 is INR947 crores. We are confident that we’ll able to maybe get another INR100 crores reduction during FY22-’23.
Nikhil Abhyankar — DAM Capital — Analyst
And sir, also you mentioned earlier that you are not giving any revenue guidance [Technical Issues]
Operator
Sir, there’s background disturbance in your line. We can’t hear you. Please…
Krishna Rao — Executive Vice President, Finance & Accounts
The line is not clear. Please there is a [Speech Overlap].
Nikhil Abhyankar — DAM Capital — Analyst
Can you hear me now?
P. V. Vijay Kumar — Vice President, Finance
Hello? Could you please repeat your question? We couldn’t hear you.
Nikhil Abhyankar — DAM Capital — Analyst
Yes, sir. I just wanted to ask, earlier you have already said that you are not giving any revenue guidance as of now, but I wanted to know, quarter-on-quarter, our margins have improved by 100 basis points and certain commodity prices have also come down. So, do you see any substantial increase in the margin going forward?
P. V. Vijay Kumar — Vice President, Finance
This is a very likely scenario, that’s what I just briefed in the introduction, because the commodity prices are mellowing down, and subject to notwithstanding all these global factors, possibly we may see an increase of another 50 bps or something like that.
Nikhil Abhyankar — DAM Capital — Analyst
Okay. So, somewhere around 10% [Phonetic] we can estimate?
P. V. Vijay Kumar — Vice President, Finance
We will — we are yet to get a complete concrete guidance from the Board.
Nikhil Abhyankar — DAM Capital — Analyst
When can we expect that, sir? Next quarter?
P. V. Vijay Kumar — Vice President, Finance
Let us see. Our Board is seriously looking at various options on how to give you the right guidance which is very realistic to all the investors. So, we hope so.
Nikhil Abhyankar — DAM Capital — Analyst
Okay. And just one last question, sir. We have seen some very positive news coming from the receivables from Andhra Pradesh government in the last two quarters. So, what is the recovery in this quarter? And where do you see in this fiscal?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes, this quarter from Andhra Pradesh, we have received INR117 crores, and in July alone, we have also received INR44 crores. With regard to the APTIDCO, the works are continuing, and we are getting realized, not only the outstanding, unbilled revenues also.
Nikhil Abhyankar — DAM Capital — Analyst
Understood, sir. And what can be the total — this thing — what can be your total recovery…
Krishna Rao — Executive Vice President, Finance & Accounts
It all depends upon the balance works to be completed. We can — in this financial year, we may expect around INR300 crores out of the old projects.
Nikhil Abhyankar — DAM Capital — Analyst
INR300 crores from the old projects?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes.
Nikhil Abhyankar — DAM Capital — Analyst
Okay, sir. Thanks a lot.
P. V. Vijay Kumar — Vice President, Finance
However, we are [Technical Issues] how the moment happens in AP government. So, it depends on that.
Nikhil Abhyankar — DAM Capital — Analyst
Okay. Understood sir. Thank you.
Operator
Thank you. Our next question is from the line of Ashish Shah from Centrum Broking. Please go ahead.
Ashish Shah — Centrum Broking — Analyst
Yes, good afternoon. Thank you for the opportunity. Sir, just coming back to the AP exposure, if you can just leave us with a number that is outstanding exposure as of June ’22?
Krishna Rao — Executive Vice President, Finance & Accounts
Yes. As of end of the June, we have the net receivables for INR496 crores and retention money INR238 crores.
Ashish Shah — Centrum Broking — Analyst
Right. So, is there any other component or these two are the only outstanding components?
Krishna Rao — Executive Vice President, Finance & Accounts
Only these two. Nothing else.
Ashish Shah — Centrum Broking — Analyst
Right, sir. Also, in terms of our outlook for inflows, what is the kind of number that we might target this year? And especially, where are you seeing the opportunities? Are you seeing more in the water side or we can expect something more on the building side? So, if you can just directionally guide us from where should we expect the inflow for this year?
Neeraj Sharma — Head of Strategy and Investor Relations
See, as you are aware about this, water projects, Jal Jeevan Mission, we are seeing lots of bidding activity in the sector, as well as there are also a lot of opportunities in buildings, as well as roads. There are projects that is coming up for bidding in distribution sector as well. So, we — and of course, not to forget about the metro sector. So, we are targeting opportunities in these five, six sectors in a very, very planned manner. And as and when the project come up for bidding, we definitely do a proper evaluation of the project. We try to look at the client, we try to look at the funding pattern, we try to look at the location, we try to look at the competition, then accordingly, we decide whether to bid or not.
Ashish Shah — Centrum Broking — Analyst
Right. Sir, sorry to push you on this, but is there any number you have in mind for the inflow for the financial year?
Neeraj Sharma — Head of Strategy and Investor Relations
My colleague has already answered this question in great detail earlier, that we do not have a guidance as we speak. So, as and when we will have a number, we will definitely share that with you. But as we speak, we do not have a number to talk about at this moment.
Ashish Shah — Centrum Broking — Analyst
Right. Thank you for your answers.
P. V. Vijay Kumar — Vice President, Finance
Thanks.
Operator
Thank you. Our next question is on the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Deepak Poddar — Sapphire Capital — Analyst
Yes, thank you very much, sir, for the opportunity. Sir, I just wanted to understand more on the revenue front. Now FY22 itself was a low base because of the first quarter, right, the second wave. So that’s the reason we grew about 55%, 56% this quarter. Now, ideally, a 15%, 20% kind of a revenue growth looks conservative, given — I mean, even if we kind of do not grow in the remaining nine months on Y-o-Y basis, we will still be able to achieve a 20% growth, right. So, just wanted to understand, do you think that’s a little conservative the numbers that you have talked about?
P. V. Vijay Kumar — Vice President, Finance
Your instinct could be right. You see the run rate — quarterly run rate if you see, we are there at around INR3,000 crore this quarter, and possibly, generally, going by the trend the last two quarters you will see much higher activity in the construction, which is a general to any company in the construction sector. So, I’m just giving you a hint like if the same run rate continues, 15%, 20% is quite achievable number. Of course, as I said, we will share with you in case when we have exact number on this.
Deepak Poddar — Sapphire Capital — Analyst
Okay. I understood. All the very best, sir. Thank you.
P. V. Vijay Kumar — Vice President, Finance
Thank you.
Operator
Thank you. Our next question is from the line of Rohit from Antique. Please go ahead.
Rohit Natarajan — Antique — Analyst
Thank you for this opportunity. Sir, I just missed out on the order backlog from water segment. What exactly is the outstanding order backlog looking like?
Krishna Rao — Executive Vice President, Finance & Accounts
INR6,565 crore as at end of the quarter.
Rohit Natarajan — Antique — Analyst
And if I recollect it correctly, this was like INR8,000 crore in the last quarter beginning, which means roughly INR2,000 crore is the execution.
Krishna Rao — Executive Vice President, Finance & Accounts
No. INR7,192 crores was at the beginning of the quarter, and INR660 crore was the execution.
Rohit Natarajan — Antique — Analyst
Okay. Sir, if I understand it correctly, this has to be executed in a very short span of time, right? So, this means this number should largely be exhausted by the end of the year. Is that a fair assumption?
P. V. Vijay Kumar — Vice President, Finance
Not necessarily. You see Jal Jeevan mission gets — focuses on the last mile connectivity to the households. Now, for each of the location, the survey needs to be done, the approvals need to be obtained. So, this is — feasibility is also supposed to be worked out. So, there are various number of parcels of talukas, mandals and all that. So, that way it is not as expected — the pace cannot be as expected, but this is how it goes.
Rohit Natarajan — Antique — Analyst
Okay. But is there any closure date that you have at this point? I mean, this project will probably spill over next year as well? Is that what you’re trying to say?
P. V. Vijay Kumar — Vice President, Finance
You see, the exact completion date as I said, these are the factors which will determine the completion date. So, possibly you may look at them the next span of like, it may spill over like next two to three years or something like that.
Rohit Natarajan — Antique — Analyst
The next two to three years you say?
P. V. Vijay Kumar — Vice President, Finance
Possibly, but that is subject to each mandal, each taluk, how it is happening, the kind of progress the state government is showing, so subject to that. Otherwise, ideally, we can talk about that.
Rohit Natarajan — Antique — Analyst
Yes. And in the building and housing segment, execution, there is no slow moving orders or something like that, which spills more than two years of execution cycle, right?
Krishna Rao — Executive Vice President, Finance & Accounts
No, these vary. Each order, they have as per the contract agreement, two years to five years, it varies depends upon and as per the contract agreements and the availability of the clearance from the client, it continues, and we are executing as per the contract agreements.
Rohit Natarajan — Antique — Analyst
So, sir, coming back to this water project, you highlighted that there are lot of opportunities. Can you quantify any number, addressable opportunity that you have in mind?
P. V. Vijay Kumar — Vice President, Finance
See, at this stage, it is quite complex to answer that. We’re working in detail. With the Board approval, we should be able to share with you in due course. But however, that’s right now not on the table.
Rohit Natarajan — Antique — Analyst
Thank you, sir. Thank you. That’s it from my side.
Operator
Thank you. Our next question is from the line of Meet Parikh from Anand Rathi. Please go ahead.
Meet Parikh — Anand Rathi — Analyst
Yes, thank you for the opportunity, sir. So, I just wanted to ask, what is the cash position at the end of the quarter? Sorry?
P. V. Vijay Kumar — Vice President, Finance
Just a minute.
Krishna Rao — Executive Vice President, Finance & Accounts
One moment please.
K. Durga Prasad — General Manager, Finance
INR552 crore. Cash and bank balance is INR552 crore.
Meet Parikh — Anand Rathi — Analyst
Okay. Then sir, you mentioned that the related party transaction has come down from INR1,300 crore to INR900 crore. So, can you give a break up on how this has come down around INR400 crores?
Krishna Rao — Executive Vice President, Finance & Accounts
This — we have been mentioning that we were able to disinvest NCC Vizag Urban, where there is an equity of INR50 crores and debt to the tune of INR300 crores. So, that is at the INR350 crore, is a reduction.
Meet Parikh — Anand Rathi — Analyst
Okay. And sir, lastly, on the press release, which you have put out with the results, it says around INR4,000 crores worth of orders have been announced during the quarter. But according to the announcements on the BSE, the orders have been quite high. They have been around the tune of INR6,000 crore. So, any mismatch on the order inflow?
Neeraj Sharma — Head of Strategy and Investor Relations
I will answer that question The reason is you are also taking into account the orders which are announced last month, that is in July. So, if you discount that, we are talking only about the first quarter, right, from April to June. Then that number matches. We have announced few orders.
P. V. Vijay Kumar — Vice President, Finance
And I have indicated to you in my initial briefing, the major component is INR1,854 crores of O&M component. So, that is not concerned because that needs to be implemented over a period of like 15 years or something or so. So, that is not factored in when we talk about the order book position.
Meet Parikh — Anand Rathi — Analyst
Okay. Thank you, sir. That is all from my side.
Operator
Thank you. Our next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Saket Kapoor — Kapoor & Company — Analyst
Yes, [Foreign Speech] sir. Thank you for this opportunity. And sir firstly, commendable job done by the team for very — very, very, improved set of numbers. Sir firstly, would like to understand some more color on the numbers, whether the factors which enabled you to setup improved margins are the sustainable numbers, sir? So, if you could show us a — from more — on the continuity of these numbers, sir, — sustainability of the numbers? Your question is not clear. Can yo please repeat it? Yes, sir. I was looking at the sustainability of these margins. This quarter, I think so, we have posted one of the best PBT numbers on a console level. So, are these numbers sustainable going forward? Have we put the ship in order that these numbers can be looked forward at the margins, which we have posted for this quarter?
P. V. Vijay Kumar — Vice President, Finance
See, one critical factor that would determine the margin would be the commodity prices. But however, if you see in the recent trend, there is a mellowing down in the overall commodity prices. So, hopefully, I think looking to the macroeconomic conditions, like downward trends in the China and US economy, I think this should continue. So, based on that, we are optimistic that the EBITDA margins would continue, possibly there is a kind of improvement too.
Saket Kapoor — Kapoor & Company — Analyst
Okay. Sir, when we look at these two line items, firstly, the subcontract work bill and the finance cost, these are the percentage of sales. Sir, how do these two line items should shape up, specially, the subcontractor work bill? Sir, when we look at your March numbers, we posted a turnover of INR3,478 crores, and the subcontractor work bills were at to the tune of INR1,448 crores. Whereas, on a top-line of INR3,300 [Phonetic] crore, INR3,221 [Phonetic] crore, we have a subcontractor reduction of INR200 crores when the top-line has gone down by INR150 crores. So, would like to understand how this line item of subcontractor work bills will pay on the turnover pie, sir.
Krishna Rao — Executive Vice President, Finance & Accounts
Say the subcontracting varies project to project, number one, division to division, and again from the stage to stage. So, absolutely, it is not practicable and possible to compare with the turnover and the subcontractor expenditure of one quarter and one division with the data [Phonetic] of the next quarter. So, it varies.
Saket Kapoor — Kapoor & Company — Analyst
As a percentage, what should we look, sir?
Neeraj Sharma — Head of Strategy and Investor Relations
If I may add some color to the answer given by my colleague, it depends on the project mix in this particular quarter. There are things that we prefer to subcontract. Let us say that we are planning to start a project. So, before we start the project, this land development, I’m just giving you an example, or the boundary walls, so we prefer to subcontract. So, when we are talking about a quarter number, this depends on the what project mix we are really looking at, the project is at what stage of the execution, then accordingly, these numbers change.
Saket Kapoor — Kapoor & Company — Analyst
Right, sir. So, as a percentage, what should we look as the subcontractor bill segment as a percentage of top-line?
Neeraj Sharma — Head of Strategy and Investor Relations
See, it would not be possible to give a number, but I can share my experience with you. Maybe you can look at the last three years’ number and take a weighted average, so that will give you some numbers to work out your PBT kind of calculation.
Saket Kapoor — Kapoor & Company — Analyst
Okay. Now coming to the final [Speech Overlap] Please, sir, go ahead.
P. V. Vijay Kumar — Vice President, Finance
One request here. We are about to close this. We will really appreciate…
Saket Kapoor — Kapoor & Company — Analyst
Yes, sir. Can I put forward just two small points and then can you close it, sir. Only two points. Firstly, on the finance cost part, sir, what have been our blended cost of funds? And what percentage of sales should we look at the finance cost line item?
P. V. Vijay Kumar — Vice President, Finance
Yes, the average financing cost, I mean, the average rate if you talk about, it is 8.67%. And as a percentage of revenue, it is 3.63%. All right? Hello?
Operator
Thank you, sir. We will move to our next question from the line of Nikhil Kanodia from HDFC.
P. V. Vijay Kumar — Vice President, Finance
Please, do not repeat the question, and please confine that we are going to conclude now.
Operator
Sure, sir.
Nikhil Kanodia — HDFC — Analyst
Okay. Am I audible.
Operator
Yes, please go ahead.
Nikhil Kanodia — HDFC — Analyst
Yes, thank you for the opportunity. Sir, I just wanted an update. What is the update on the arbitration on the SEMB Corporation and TAQA India?
Neeraj Sharma — Head of Strategy and Investor Relations
About the SEMB Corp part first, the counter arguments are expected to start on 15th of this month. And we are hopeful that by the end of this financial year, we will have some clarity.
Nikhil Kanodia — HDFC — Analyst
Okay.
Neeraj Sharma — Head of Strategy and Investor Relations
On the TAQA part, TAQA part as well, there are two, three parts of the litigation, and all of them are in — at different stages. It will take a while to get some clarity. Incidentally, we got an award in our favor about INR9 crore from this Madras High Court recently. But we believe that, that has been subsequently challenged. So, it will take a while. It is very difficult to talk about a timeline. You know how this whole judicial process works. It will take a while.
Nikhil Kanodia — HDFC — Analyst
Okay, sir. Understood. And sir, in case of AP, you have mentioned about the revenues that you would have booked in Q1. As on the — at the end of the quarter, what is the outstanding order backlog?
Krishna Rao — Executive Vice President, Finance & Accounts
From AP?
Nikhil Kanodia — HDFC — Analyst
Yes, from AP.
P. V. Vijay Kumar — Vice President, Finance
Is it the overall backlog or is it particular to any AP?
Nikhil Kanodia — HDFC — Analyst
Sir, particular for AP.
Krishna Rao — Executive Vice President, Finance & Accounts
AP, old and the new altogether is INR3,279 crores orders at the end of the quarter.
Nikhil Kanodia — HDFC — Analyst
Okay, sir. Understood. And sir, in case of sewerage project, so what — is there any impact of the change in the government?
Neeraj Sharma — Head of Strategy and Investor Relations
Where?
Nikhil Kanodia — HDFC — Analyst
In case of sewerage project in Mumbai.
Neeraj Sharma — Head of Strategy and Investor Relations
Let me answer that question. As per the evidence available on the table, we have no reason to believe that there is going to be any change whatsoever in the project. We are deeply engaged with the client. As you are aware that project of this magnitude and this complexity takes a lot of time to get finalized. So, we are deeply engaged with the client. We are in the process of signing the contract. Okay. So, the LOA hasn’t come with you, correct?
P. V. Vijay Kumar — Vice President, Finance
We will take last question now, please. Hello? We will take one question, last one question, please.
Operator
Sure, sir. Thank you. We’ll move to our next question from Parvez Qazi from Edelweiss.
Parvez Qazi — Edelweiss — Analyst
Yes, hi. Good afternoon, sir, and thank you for taking my question. So, just two questions from my side. Was there any revenue contribution from our international project in this quarter?
Krishna Rao — Executive Vice President, Finance & Accounts
Only INR3 crores. This is a project at the closure stage.
Parvez Qazi — Edelweiss — Analyst
And secondly, what was the capex that we have done this quarter?
Krishna Rao — Executive Vice President, Finance & Accounts
INR57 crores.
Operator
Thank you, ladies and gentlemen…
P. V. Vijay Kumar — Vice President, Finance
So, thank you so much. We will conclude the call now. [Speech Overlap] I thank each one of you for participating in the call. And we are available for any of your queries. You can send us a mail. You have our contacts and all that. So, I once again thank each one of you for taking time and participating in this call. So, we’ll see you next. Thank you so much.
Operator
Thank you very much.
P. V. Vijay Kumar — Vice President, Finance
Thank you.
Operator
[Operator Closing Remarks]