PNC Infratech Limited (NSE: PNCINFRA) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Yogesh Kumar Jain — Managing Director
Mr. Devendra Maheshwari — Senior Vice President, Finance and Strategic Growth Advisors, our Investor Relations Advisors.
Analysts:
Mr. Mangesh Bhadang — Investor Relations
Shravan Shah — Analyst
Sarvesh Gupta — Analyst
Niteen Dharmawat — Analyst
Jyoti Gupta — Analyst
Vaibhav Shah — Analyst
Deepesh Agarwal — Analyst
Parikshit Kanphal — Analyst
Unidentified Participant
Vishal Periwal — Analyst
Vasudev Ganatra — Analyst
Shravan Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q2 FY ’25 Earnings Conference Call of PNC Infratech Limited hosted by Centrum Broking Limited.
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. As a reminder, all participants lines will be in the listen-only mode. And there will be an opportunity for you to ask questions, after the presentation concludes. [Operator Instructions] Please note that, this conference is being recorded.
I now hand the conference over to Mr. Mangesh Bhadang from Centrum Broking Limited. Thank you, and over to you, Mr. Bhadang.
Mr. Mangesh Bhadang — Investor Relations
Thanks, Michel. Good afternoon, on behalf of Centrum Broking, I’m pleased to welcome you all on the PNC Infratech Limited Second Quarter FY ’25 Earnings Conference Call. We have with us today the Managing Director of the company, Mr. Yogesh Jain, along with the senior management team of the company. We will begin the call with the opening remarks from the management, which allow by the interact Q&A session. Thank you, and over to you, sir.
Yogesh Kumar Jain — Managing Director
Good afternoon, everyone. On behalf of PNC Infratech Limited, I explained a warm welcome to everyone for joining us today on this call. Let me start wishing everyone on the call a very happy Deepawali and a prosperous New Year from PNC Infratech family.
Today, I have with me Mr. T.R. Rao, Director Infra; Mr. D K Maheshwari; Senior Vice President, Finance and Strategic Growth Advisors, our Investor Relations Advisors. We have uploaded the financial visors and investor presentation on the stock acting and company website for your reference.
Initially, I would like to mention key update of the industry, followed by operational developments of the company and highlights of financial performance during the second quarter and the first half year of financial year ’25 post which we will be happy to answer your questions.
Over the past six months the infrastructure sector experience unprecedented subdued execution activities, largely impacted by intensely widespread monsoon during the period from mid-May, till mid-September. Critically low — new project awarding activity by MoRTH including NHI over the past one and half years and the delayed elation of a contract date for the already awarded projects due to non-availability of enough vacantly possessed land. For
For commencement of construction complete hold on the Bharat Mata program and the general election of 2024. MoRTH and NHI awarded only around 700 km of new projects until August 31, 2024 while around 2700 km of national IW constructed during this period. Both work significantly lower than 1,750 km awarded and 3,200 kilometer constructed during the corresponding period in financial year 2024.
Though as per the MoRTH and NHI the bidding awarding activity will be expedited in coming months starting from December 2024 onwards. Across all the modes of implementation, commitment of physical execution of awarded projects will always be subject to availability of sufficient big content in contagious stages for uninterrupted construction.
It is also a fact of recognizing that even though large number of projects could be awarded before the end of current financial year, visibility of progress and translation into revenue could only be seen from the second half of finance year 2026, not before that.
While national highway and the expediency awarding activity remained mutated over the past one and half of the year at the central level, industry witnessed a significant headway in new projects bidding activity by the Indian Railways across John and White, some of Central PSU.
New governments have recently been formed in the state of Telangana, Andhra Pradesh, Haryana and Jammu Kashmir and after the ongoing elections new government will be formed in Maharashtra and Jharkhand significant new business opportunities in the infrastructure space are expected to emerge in the near future districts.
New projects are also expected to be launched in airports development space in coming months and many of the domestic airports are boiled for immediate upgradation and expansion activities. On the project implementation front, during the quarter, company subsidiary PNC Challakere Private Limited received provisional completion certification for four laning of Challakere to Hiriyur HAM project on 11th September ’24 and PNC Highway Private Limited received final completed certificated on 29th October ’24 for four laning of Aligarh- Kanpur Package HAM project.
During the third quarter of current financial year, the company subsidiary, Sadra Highway Private Limited and Hardoi Highway Private Limited expected to receive provisional completion certificate for four laning of Mathura 1-C and Hardoi bypass HAM project, respectively.
On the project awarding front, the company front, the company received LOA on 10 October ’24 for an EPC project of contract value INR2,040 crores from CIDCO, Bombay for integrated infrastructure development in town planning scheme 8, 9, 12 of NAINA project.
Second, received LOA for two EPC projects from Maharashtra State Road Development Corporation, MSRDC for an aggregate contract value of INR4,630 crores on 14th October ’24 including construction of access-controlled Pune Ring Road Package E2 for INR2,268 crore and construction of access-controlled expressway from Jalna to Nanded package JNE-4, which is connected to Nagpur-Mumbai also Samruddhi Mahamarg for INR2,362 crores.
With the award above mandate, the total new business secured in the current financial year till date come to INR6,670 crores. Company has received INR62 crores in the month of August ’24 and INR108 crores in the month of ’24, totaling INR170 crores, out of the total outstanding of INR222 crores from the government of Andhra Pradesh towards work done in the canal upgradation project in AP, and company will be resuming execution of remaining works of the canal project of value over INR900 crores shortly.
Moving on to the operational and financial performance of the company, out of the company’s 28 fund-based projects, three are BOT-Toll projects, two are BOT-Annuity projects, and 23 are HAM projects. Aggateject bid project cost of 23 HAM project is over INR30,000 crores, which is one of the largest highway HAM projects portfolio in the country.
Out of total 23 HAM projects, company achieved PCOD, COD for 11 projects, eight projects are under construction, out of which four projects are expected to achieve PCOD before the end of current financial year, three projects achieved financial closure and appointed dates are expected to be delivered shortly. For one project, concession agreement was executed with the authority on 7th March ’24 and financial closure document has been executed and submitted to MPIDC for the financial closure.
Total equity investment requirement for ongoing and awarded HAM projects is INR3,092 crores. As of September ’24, company already invested INR2,220 crores and remaining equity of INR872 crores to be invested over the next two to three years. The internal accruals that would be generate over the next two to three years should be adequate to meet the above equity investment requirements.
Now moving on to our order book. As of 30 September ’24, the company unexecuted order book stands over INR19,900 crores, which includes three EPC contracts secured by the company for aggregate contract value of INR6,600 crores.
Out of the unadjudicated order book, highway and expressway contract contributed around 65%, while water canal, area development, and railway project contributes 35%. In terms of the proponents of total unadjudicated order book of over INR19,900 crores, value of MoRTH including energy contract comes to 33% and value of contract awarded by other authorities and other clients comes to 67%.
During the first half of financial year 2025, the company has booked a total revenue INR429 crores in the drinking water segment.
Now, I would present the results for the quarter and how we have ended September 30th, 2024. The standalone revenue for second quarter of fin year 2025 is INR1,149, the EBITDA for second quarter of financial year 2025 is INR134 crores. The EBITDA margin for the second quarter of financial year 2025 is 11.6%. The profit for the second quarter of financial year 2025 is INR81 crores, the PAT margin for the second quarter of financial year 2025 is 7%.
A standalone revenue for H1 financial year 2025 is INR2,994 crores. The EBITDA for H1 2025 is INR727 crores, which is higher by 54% as compared to INR473 crores in the financial 2024. The EBITDA margin for H1 financial year 2025 is 25.1%.
The profit for H1 financial year 2025 is INR502 crore as compared to INR296 crores in H1 financial year 2024, a growth of 59% on a year-to-year basis PAT margin for H1 financial year 2025 is 17.3%.
Console revenue for second quarter of financial year 2025 is INR1,427 crores. The console EBITDA for second quarter financial year 2025 is INR356 crores. The EBITDA margin for quarter two financial year 2025 is 25%.
The console PAT for the second quarter of financial year 2025 is INR83 crores. The PAT margin for quarter two financial year 2025 is 5.8%. Console half-yearly revenue for financial year 2025 is INR3,595 crores. The console EBITDA for H1 financial 2025 is INR1,325 crores as compared to INR836 crores in H1 financial year 2024, a growth of 58%.
The EBITDA margin for H1 financial year 2025 is 36.9%. The console PAT for H1 financial year 2025 is INR659 as compared to INR329 crores in H1 financial year 2024, a growth of 100%. The PAT margin for H1 financial year 2025 is 15.3%.
On the standalone balance sheet side, as on 30th September 2024, our net working capital cycle is 144 days. Our net worth on a standalone basis is INR5,269 crores as on 30th September 2024, whereas total standalone debt is INR410 crores.
The total cash and bank balance as on 30th September 2024 is INR640 crores. We have a net surplus of INR230 crores. This translates to net debt to equity of 0.8 times. Our net worth is INR500, console net worth INR5,830 crores, whereas total debt is INR8,780 crores as on date 30th September 2024. The total cash and bank balance, including current investment is INR1,535 crores. This translate to net debt to equity of 1.5 times.
With this, we now open the floor for question-answers. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session [Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Thank you, sir. Sir, just to check on what we recently discussed sir regarding the more one-year ban. So any update first, what kind of even I think our repetition has also been rejected. So what’s the course of action for us. And when can — by when can we have some clarity on that part. So that is one. So — and then if there is no clarity than in terms of order inflow, how we are now looking at how much more and from which segments, sectors are we looking at to get the orders?
Yogesh Kumar Jain
Hi, Shravan.
Mr. Devendra Maheshwari
Good afternoon.
Shravan Shah
Yes, sir.
Yogesh Kumar Jain
That repetitions have been not been allowed by the single bench of honorable high court. We are evaluating options, including file of an appeal against the order of the MoRTH as well as the order of the single case. We are evaluating that one of these options. We are also taking measures to mitigate the impacts because of this order, how we can mitigate? To what extent we’ll be able to mitigate? And in case of any positive results, we’ll certainly share after intimating to the exchanges. However, we are hopeful of getting certain relief from current challenging situation further later.
Second thing, we’ll keep all the case orders updated, any material development in this matter after June intimating to the exchangers. And we appreciate and we trust that we will understand the sensitivity of the matter and does not seek any further details or further elaboration on the matter being — being the matter being the sensitive.
With regard to order book we still maintain, as I mentioned in the beginning of the year that our order book for the current financial year guidance will between INR13,000 crores to INR15,000 crores. Already we secured around INR6,700 crores or orders already. So remaining we are expecting another INR6,000 crores to INR8000 crores orders from authorities and opponents other than MoRTH, there are opportunities we identified. So we’ll be pursuing those opportunities to secure further business before the end of current financial year.
Shravan Shah
Sir, if you can help there, which sector, or which authority even at state level, any state authority road projects are we looking at? Is there any — are there any bids we have already bidded and the outcome is yet to come and how much more are we planning to bid maybe sector-wise possible that will be helpful because this is the most important thing for us to in terms of to get revenue visibility.
Yogesh Kumar Jain
We had already submitted around — submitted eight bids projects floated by authorities other than NHA and mark [phonetic]. Some of them are state and some of them are central, including railway bids, the value of over INR11,000 crores. The price bids are, these bids are to be — yet to be opened. So maybe next one, 1.5 months of these bids we’ll open. So we are hopeful of getting some projects from these bids.
And further, MoRTH — other than again MoRTH and bids, there are around 12 bids have been invited by other agencies and other authorities having an aggregate value of INR14,000 crores, which we have identified for bidding, and we will be bidding. These projects will be evaluating these opportunities and bidding these projects in the coming months.
So INR11.000 crores already bid and INR14,000 crores we identified. So total INR25,000 crores worth of projects we are pursuing.
Shravan Shah
We need to get a very good success rate in this INR25 000 crore to get the this INR6,000 crores to this INR8,000 crores kind of orders that we are looking at now. So now, just to get back in terms of the guidance, what we previously said so, terms of revenue. So till now 19% growth is there uh standalone. Last time we said flat to minus 10% growth. So now what’s the standard for FY ’26? We said 15%, 20% growth. So what’s the revised guidance? And also on the EBITDA margin also.
Yogesh Kumar Jain
The given the situation, the revised guidance for the FY ’25 would be 15% to 20% decline, and accordingly FY ’26 would be up to 30% plus growth.
Shravan Shah
Margin will be a 12% cost towards the previous guidance?
Yogesh Kumar Jain
Yes, yes. Okay, previous guidance.
Shravan Shah
If you can help us with a couple of balance sheet data points, that would be a grateful and even the project wise order book. So just to mobilization, advanced retention money ham data, water data. Can you again discuss this one?
Yogesh Kumar Jain
Can you again discuss because there are other moments are there. So request you go again, we’ll come at this one going forward..
Shravan Shah
Okay.
Operator
Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital Private Limited. Please go ahead.
Sarvesh Gupta
Thank you sir. Good afternoon. And thank you, sir. Before I ask the question, just —
Operator
I’m sorry to interrupt, sir. I would request you to please use your handset because your voice is not clear.
Sarvesh Gupta
Yes. Before I ask the question, I could not hear the revised guidance. So is it 15% to 20% decline or what was it?
Yogesh Kumar Jain
Yes, yes, it is minus 15% to
Mr. Devendra Maheshwari
15 to 20% decline.
Sarvesh Gupta
And next year, 30% growth?
Mr. Devendra Maheshwari
Growth.
Sarvesh Gupta
And margins to remain in…?
Mr. Devendra Maheshwari
Yes. Margins will be around 13% EBITDA.
Yogesh Kumar Jain
In FY ’26. FY ’26 would be around 13%..
Sarvesh Gupta
Now that you know this matter which has come up of the band by MoRTH, so you must have had discussions with about this asset sale with the counterparty. So is there any problem in terms of doing that transaction or everything is going as per plan?
Yogesh Kumar Jain
We don’t see any problem in the transaction. Everything is as per the plan.
Sarvesh Gupta
And sir, by when are we planning to close this thing, and when can we expect to receive the money?
Yogesh Kumar Jain
Out of total assets for which we had entered into a master security purchase agreement in the month of January, we expect to close 10 mandates, 10 assets before the end of the current financial year. And the remaining two assets will be in the next financial year.
Sarvesh Gupta
Remaining in the next two financial years. Okay. And sir.
Yogesh Kumar Jain
Yes.
Sarvesh Gupta
And sir, now coming to your growth. The execution in this quarter that has been sort of very subdued like almost for H1. Also it is almost down by 30 odd percentage. So how do we see the execution I mean, I can understand that now no new orders will flow through. But in any case, if they were to come that would have been probably impacting the revenue of FY ’26 and not FY ’25, which is coming from the current order book only. So why should we have such a decline in FY ’25, 15%, 20%? And why are we seeing such slow execution on our existing order book in terms of revenue translation?
Yogesh Kumar Jain
See, we appreciate your kind of concern about the decline in the revenues. Particularly, what has happened in the, if you see the background of last 1 — 1.5 years so nearly 2 years, awarding activity has been very slow by the MoRTH, which was one of your focus sectors and focused about this.
As you know, last 1.5 years to 2 years the order awarding — activity has been very slow. One way the ministry talks about 40 kilometers of road per day. But they are targeting 40 kilometers of road per day whereas they are awarding less than 10-kilometer of road per day awarding — awarding is less than 10 kilometer. In this current — last five months, the awarding activities is less than 6 kilometers. If they are talking about 40 kilometers of every day constructions.
So awarding activity has been very slow. So we could not get the new orders last 1 year and 1.5 years, particularly from the MoRTH. And then strategically, we shifted our focus and we set our efforts to areas and other state governments. That is one aspect.
Second thing is — they also — as MD has mentioned, they put a break on the Bharatmala project. There were the general elections this year to the parliament. And also the monsoon was very active, very insistent rains and very widespread across our project areas. The time unprecedentedly, monsoon continuously it was raining. And particularly in our water sector where we need to lay the pipelines below the existing and also construct water tanks below the — track on the underground. So these are — all of these projects have been severely affected progress. That has happened in the second quarter of this year.
This is one — and third thing, third important thing though we got more than 6,000 worth of new projects before last year. These projects could not be taken up due to non-availability of sufficient land, particularly, in the contiguous stages; that is Varanasi to Kolkata, three HAM projects and one MPRDC project and one project in [Indecipherable]. So nevertheless, so we have eight new mandates. Five already awarded mandates and three recently awarded mandates from MSRDC and CIDCO. These eight mandates will have a value of over INR110,000 crores for which we are expecting our appointed dates deeper end of this calendar year. And we are quite hopeful that we’ll commence preconstruction and preconstruction activity right now.
In case of Maharashtra project, immediately after the current election process and code of conduct gets over, we’ll commence. And we’ll see some sizable income from these new eight projects in the Q4 of FY 2025, and we’ll get a significant income from FY 2026 onwards from these projects.
Sarvesh Gupta
Understood, sir. In the Maharashtra, there are two projects now in case there is a change in the government, do you foresee any problems in terms of getting the final orders for these two projects, which are sizable part of unexecuted order book?.
Yogesh Kumar Jain
No, no, no. We don’t foresee — a continuity of policies are there. Even last time also, there has been a change in government when we are executing Nagpur-Mumbai Expressway and we didn’t get any issue over there. And now also contract agreements have been signed for all these projects. So we don’t foresee any issue.
Mr. Devendra Maheshwari
Advances have taken.
Yogesh Kumar Jain
Yes, mobilization advances have been received. So we don’t foresee any issue in any of the Maharashtra projects because the development of — these are the very development projects and very crucial for this socio-economic development of the state. We don’t see any issue.
Sarvesh Gupta
Okay, sir. Thank you and all the best.
Yogesh Kumar Jain
Thank you.
Operator
Thank you. We’ll take the next question from the line of Niteen Dharmawat from Aurum Capital. Please go ahead.
Niteen Dharmawat
Yes. Am I audible?
Operator
Yes, sir. Please proceed.
Niteen Dharmawat
Okay. My question is after this order, which is come, have you won any new contracts or we are just yet to get that from authorities other than LHAI, of course?
Yogesh Kumar Jain
Yes. As I mentioned, we submitted eight bids to Indian Railways, different zones and one bid to Haryana Road — Rail Infrastructure Development Corporation and also four bids to MSRDC. These are all other than the MoRTH bids. The opening of price bids are awaited because the Code of Conduct is in place in Maharashtra, so this INR11,000 crores, we expect some projects we secured. We are hopeful of that.
Niteen Dharmawat
Got it. And what is the growth you mentioned. I missed that in the top line this year and next year, what is the guidance that you’ve given?
Yogesh Kumar Jain
Kunal already mentioned, this year there will be a decline between 15% to 20% in the top line, and whereas next year, we see a growth on a plus side up to 30% over FY ’25.
Niteen Dharmawat
Got it. And what is the EBITDA guidance that you have given for this year, sir?
Yogesh Kumar Jain
Current year, we have given up to 12.5% and the next year would be around 13%.
Niteen Dharmawat
Okay. Got it. Thank you so much.
Yogesh Kumar Jain
Thank you.
Operator
Thank you. We’ll take the next question from the line of Jyoti Gupta from Nirmal Bang. Please go ahead.
Jyoti Gupta
Thank you so much sir for taking my question. My — this is related to your — sir, am I audible?
Operator
Yes.
Jyoti Gupta
I just want to know how does it affect your credit rating in terms after this order? Do you think will that impact in any way your balance sheet items because of this order?
Yogesh Kumar Jain
After this order, they’ve already reviewed our rating and they have gone through their committee, it is still same AA+ long-term.
Jyoti Gupta
Sorry sir, I missed out. What did you say?
Yogesh Kumar Jain
They reconfirmed the same rating income. There is no change in the rating. The rating agency Juli scrutinizes the things post declaration of this order and they reconfirmed the same as AA+ for long-term.
Jyoti Gupta
Okay. That is it. That’s my question. Thank you.
Yogesh Kumar Jain
Thank you.
Operator
Thank you. We’ll take the next question from the line of Vaibhav Shah from JM Financial Limited.
Vaibhav Shah
Yes sir. Thanks for the opportunity. Sir, can you just provide the data on the detail of 10 assets which we are going to monetize now in FY ’25? So what would be the equity value and what was the investment in those 10? Earlier, we had broken up in 10 and seven and five assets. So can you provide similar data for 10 and two assets?
Yogesh Kumar Jain
10 assets equity value is INR1,490 crores as against INR1,739 crores of 12 assets. And enterprise value will be around INR7,690 crores.
Vaibhav Shah
Great.
Yogesh Kumar Jain
And that will around INR5,500 crores.
Vaibhav Shah
Okay. And secondly, sir, we saw that muted execution in JJM for the second quarter. So was it only due to the heavy monsoon or also due to delayed payments? So how have been the payment so far on the JJM side? And last time, we guided for revenue of INR1,500 crores from JJM, so what would be the revised guidance given the weaker execution in first half?
Yogesh Kumar Jain
The revised guidance is INR1,200 crores and this is basically essentially due to the active monsoon, many of the works affected at the site, because even post monsoon also, post finance also this after effects will be there because most of the works are to be executed below the ground. Essentially, we do that. And since we have sufficient working capital, any delay in the payment didn’t affect our work.
And with regard to the payment, we are getting the payment. Certain payments are due, exact figures we’ll share separately. But we don’t foresee because the 50% grant has to come from central government and 50% has to be given by state. And being a priority sector, we don’t foresee any long-term issues in payments, but maybe there may be slight interruptions in the payments.
Vaibhav Shah
And lastly, can you go provide a break up of equity investment over ’25 to ’27 of that INR872 crores pending equity?
Yogesh Kumar Jain
Yes. In case we received the appointed of the all the BOT project. So this year, we have to include around INR486 crores and FY ’26 is INR256 crores and FY ’27, INR132 crores this includes the…
Vaibhav Shah
The ongoing Projects.
Yogesh Kumar Jain
Yes, eight ongoing projects.
Vaibhav Shah
And sir, we expect appointed all the projects by December 24?
Yogesh Kumar Jain
Yes, we are expecting. Yes.
Vaibhav Shah
Yeah, Okay. Thank you, Sir. Those are my questions.
Operator
Thank you. We’ll take the next question from the line of Deepesh Agarwal from UTI AMC. Please go ahead.
Deepesh Agarwal
Yeah. Good afternoon, Sir. Sir, my first question is to understand is on the pipeline on the JJM projects, I think it has been quite long since we have last one the projects in GTM — how is the pipeline looking at? And are we active in bidding for those projects?
Yogesh Kumar Jain
No, we are certainly looking very actively for in case of any further focus concept in the JJM space. As of now, there are no major projects in the JJM because of the elections and the Madhya Pradesh and all that happened last year, and that followed by general elections for Lok Sabha. So if any projects are coming up in JJM, certainly we’ll look into those opportunities for pursuing.
Deepesh Agarwal
Sure. And Sir, I want to understand on the diversification side now with the restriction on the major customer on the road. How are you thinking about diversification beyond road and water? I understand you are bidding for some railway projects, but beyond this, what is your preparedness in bidding for projects, team building, etc?
Yogesh Kumar Jain
No. Apart from railway projects, as you know, we got the area development project, major area development project from CIDCO. It is certainly a diversification because it’s not a highway project, it’s not a railway project, it’s a major development project. In the, around the Navi Mumbai Airport, this NAINA project is Navi Mumbai Airport influential notified area. They’re constructing a new city over there under different town planning schemes. It’s a comprehensive development of a new city.
So we got that project for more than 2,000 floors. Certainly it’s a big thing and it will also open the start for us for the entering into the area development projects across the country. So this is the one diversification area and also we are pursuing similar projects. Some of the projects are coming up in UP also by UPSIDA, the area development and industrial area development. And we are also — railway, we have built railways and we have a senior railway officers. We superannuated from railway. So they’re also pursuing and the railways also and the water segment apart from the Jaljeevan mission, we are also looking at the other water projects including treatment plants and all. Some collaboration with the inventors. So we are looking at all the options. So into, forwarding to diversification, forwarding to new sectors and new spaces.
Deepesh Agarwal
Okay, okay. Thank you and all the best.
Operator
Thank you. We’ll take the next question from the line of Parikshit Kanphal from HDFC Securities. Please go ahead.
Parikshit Kanphal
Hello. Sir, first question is these new projects which you said will move into FY ’26. So these are the canon projects?
Yogesh Kumar Jain
They are Challakere and Meerut projects.
Parikshit Kanphal
Challakere and Meerut. So these two issues the meeting suspended. So we continue to be part of that 10 projects, which we get exercised in FY ’25.
Yogesh Kumar Jain
Yes. As you know, these two are the SPV projects. Any suspension of bidding and all doesn’t have any consequence to these projects. These projects are meant exclusively for implementation of a particular project. So the bidding and all is totally inconsequential to these two projects. So these two projects will be a part of first tranche which we expect to close before the end of the current financial year. Only Meerut and Challakere where we got the PCOD delay lately. So those two projects will be in the next financial year. That also will be able to close during the first quarter of next financial year.
Parikshit Kanphal
Okay. So second question is when someone is debarred, like now, I mean, if the bids are not opened and generally the bids are disqualified, the contractor gets disqualified. But in case where the LO has been signed and FC has been achieved, like in case of three projects which are pending AD. So how does the authority assess those projects? So will those projects be progressed or is it like legally binding now on the authority to proceed and award those projects? Or there’s still some room that they will still re-evaluate and look at how it gets awarded?
Yogesh Kumar Jain
No, no, no. This awarding project and this thing is irreversible. And this debarment order effecting from 18th of October, this has nothing to do with those projects. So these projects will go as per the thing. And whatever projects we secure, those projects will go ahead with the execution and we’ll complete those projects. So there is no point of any kind of a review of these projects in view of the ordering question.
Parikshit Kanphal
So the LOI is the main document, which basically is the cutoff kind of a document where if it has been issued before that date, so then this has to be honored by the authority.
Yogesh Kumar Jain
Okay. Even we have executed the contract agreements for these projects, and we have received the mobilization advance also.
Parikshit Kanphal
Okay. So for all these 3 projects, Varanasi Ranchi and this three packages, so you have received mobilization advance also?
Yogesh Kumar Jain
Those projects are appointed dates are yet to be declared. Those concession agreements have been signed.
Mr. Devendra Maheshwari
Concession agreement
Yogesh Kumar Jain
So those projects appointed dates will be declared. So has nothing to do with the startup.
Parikshit Kanphal
So I just want to understand legally, how it is binding in terms of like what the cutoff date. So is it the LOI which decides that or the signing of concession agreement, it decides that the authority will not take any punitive actions against these 3 projects. So how do you — what confidence do you have on that? So what determines that I want to understand?
Yogesh Kumar Jain
Even opening up the bid itself with the cutoff date before LOA, if the bids — financial bids are open because it’s only for bidding process, so that is the thing. If LOI is given, it’s totally irreversible.
Parikshit Kanphal
Okay. So now just on the AP side, one thing you touched upon was that the project, the canal project is now restarting and you have received the payments. Just wanted to understand any of the opportunities you look at now the building out of the AP city, AP state. So any further opportunities you’re looking to kind of replace the shortfall which may happen due to NHAI from the AP state?
Yogesh Kumar Jain
Yes, we are. Yes. We are certainly looking at the opportunities because even for the Amravati new capital for the AP, World Bank is granting INR15,000 crores work for the infrastructure development there. And also state government is coming with some other projects. Also, the state government is contemplating connecting both Godavari and Krishna and Penna Rivers. So many irrigation projects that may come up in the state government. So certainly, we’ll look at those opportunities. We’ll pursue it because this government has got more than 4.5 years — more than 4 years of tenure. Certainly, we’ll pursue opportunities there.
Parikshit Kanphal
So you’re looking — I mean, because your guidance of around INR14,000 crores, INR15,000 crores this year despite not factoring anything from NHAI itself. So you have that confidence that you will be able to deliver that, right?
Yogesh Kumar Jain
Yes, yes.
Parikshit Kanphal
Okay. Sir. Okay. sure. Thank you.
Operator
Thank you. The next question is from the line of Jinay Mehta from LKP Securities. Please go ahead.
Unidentified Participant
Good afternoon, sir. Am I audible.
Operator
Yes. You’re audible, sir. Please proceed.
Unidentified Participant
Yes. Sir, in the investor presentation, I see the EBITDA margins for the H1 FY ’25 25%. So are we maintaining the same? Or did you mention 13%…
Yogesh Kumar Jain
EBITDA margin FY ’25 as told by our, T.R. Rao it will be around 12% to 12.5% in FY ’25. But however, in FY ’26, it will be around 13%…
Unidentified Participant
Okay. Because the first half, I see it is mentioned 25% for the H1 as of now.
Yogesh Kumar Jain
No, no. Actually, H1, it includes the arbitration award. So it is…
Unidentified Participant
I’m sorry you are talking…
Yogesh Kumar Jain
No — Stand-alone also because it includes the arbitration award. So it is showing that one reflecting that one as a higher thing. Otherwise, the EBITDA margin without considering the arbitration award, what we have received, it would be between 12% to 12.5% Vasu had mentioned it. So its not external income.
Unidentified Participant
Okay, sir. That’s it from my side. Thank you.
Operator
Thank you. We’ll take the next question from the line of Vishal Periwal [Phonetic] from Antique Stock Broking. Please go ahead.
Unidentified Participant
Yes, sir. Thanks, sir for the opportunity. A couple of clarifications. I think you mentioned that the pipeline of projects that you will be bidding or we have bidded is INR25,000-odd crores. So INR11,000 crores is railway. So this INR14,000 crores is from whichever authority. Can you give some breakup on that front?
Yogesh Kumar Jain
See, INR11,000 crores — INR14,000 crores, what we are thinking there is a eight railway bits are there. And there is one new state industry area and one in U.P. Expressways Industrial Development Authority. There will be one bit by Airports Authority of India and one is bit by Maharashtra Industrial Development Corporation. So these are 12 bits other than [indecipherable] so of a total value of INR14,000 crores.
Vishal Periwal
Okay. Got it, sir. And then is that the right way to understand the next year’s growth rate of 30% will dependent upon the timely received of AD [Phonetic] which we are expecting by December 24. That’s a right way to understand, right sir?
Yogesh Kumar Jain
See whatever spillover things are there on the ongoing progress, because the eight HAM projects are ongoing and also water project and cannel projects these are the projects which are ongoing.
Definitely, there will be a spillover of these projects will balance with. Apart from that the eight projects where we are going to issue appointed dates before end of the calendar year. So these projects are valued more than INR11,000 crores. So coupling will be 30% growth. 30% growth is also because of the low rate effects of FY 2025.
Vishal Periwal
Right sir, Got it sir. And maybe one last thing, how are you seeing the CapEx for this year and anything on next year that you plan as of now?
Yogesh Kumar Jain
This year, CapEx, we want to revise from INR80 crores to INR100 crores to INR30 crores to INR40 crores sir and next year to be around INR100 crores to INR120 crores.
Vishal Periwal
Got it sir. Yeah. Thats all from my side sir. Thank you very much.
Operator
Thank you. We’ll take the next question from the line of Vasudev from Novama. Please go ahead.
Vasudev Ganatra
Yeah. Thank you for the opportunity sir. Sir, you said CapEx your plan of INR30 crores to INR40 crores in FY 2025. So out of this, how much have we done in H1?
Yogesh Kumar Jain
In H1 its around INR7 crores only.
Vasudev Ganatra
Okay. Very close. And can you repeat the toll collection numbers?
Yogesh Kumar Jain
Yeah. Toll collection in MP highway is about INR9.8 crores and in Kanpur highway its INR18.1 crores and Bhanoli, Almora is INR15.1 crores.
Vasudev Ganatra
Okay. And Narela one sir?
Yogesh Kumar Jain
Narela, INR11.2 crores and Raebareli and UP INR32.2 crore.
Vasudev Ganatra
Okay. And sir, just some clarification what is the amount that we are receive from Andhra Pradesh you said?
Yogesh Kumar Jain
INR170 crores.
Vasudev Ganatra
INR170 crores.
Yogesh Kumar Jain
Those in two transits.
Vasudev Ganatra
Okay. Sure sir. That’s it from my side. Thank you.
Operator
Thank you. We’ll take the next question from the line of Shravan Shah from DOLAT CAPITAL. Please go ahead.
Shravan Shah
Sir, will you now be able to share balance data points?
Yogesh Kumar Jain
Yeah. Yeah. Thank you. Thank you for your kind patience.
Shravan Shah
Yeah. Sir, mobilization advance, retention money, HAM letters, water letters?
Yogesh Kumar Jain
And the mobilization advance is to INR90, retention is INR140 crores and HAM letter is INR500 crores.
Shravan Shah
INR500 crores. And water letters?
Yogesh Kumar Jain
Water is INR712 crores.
Shravan Shah
INR700…
Yogesh Kumar Jain
INR710 crores.
Shravan Shah
7-1-0. Okay got it. Sir, is it possible to share a couple of outstanding projectwise order book value?
Yogesh Kumar Jain
Yes.
Shravan Shah
Yeah. Sir, Haryana Orbital Rail Corporation?
Yogesh Kumar Jain
INR670 crores. 6-7-0.
Shravan Shah
6-7-0. And this irrigation project AP?
Yogesh Kumar Jain
INR950 crores. 9-5-0.
Shravan Shah
9-5-0. So it seem some increase has happened there — there’s very recent.
Yogesh Kumar Jain
If divide the estimate this increase happened from INR1,000 crores to INR11,000 crores.
Shravan Shah
Okay. And Kanpur, Lucknow express package one and two package?
Yogesh Kumar Jain
One is 400 and package two is 430.
Shravan Shah
Okay. And what it Mathura Bypass to Gaju Village?
Mr. Devendra Maheshwari
[Foreign Speech] is INR275 crores.
Shravan Shah
Sorry. Mathura Bypass to Gaju Village last time, it was INR340 crores, you said it is completed.
Yogesh Kumar Jain
No. I think, there will be some conclusion because there are two projects, 1B and 1C are Mathura. So 1B is INR275 crores outstanding and 1C only INR20 crore.
Shravan Shah
Okay. And Hardoi, how much is value left now?
Yogesh Kumar Jain
INR80 crores. Hardoi is almost completed. We’re expecting PCOD soon.
Shravan Shah
Yes. And in this Unnao-Lalganj and Meerut to Nazibabad, that is also completed.
Yogesh Kumar Jain
Almost completed, around INR20 crores, INR10 crores is outstanding. Both projects we received PCODs.
Shravan Shah
Okay. And last, Challakere to Hariyur?
Yogesh Kumar Jain
INR70 crores.
Shravan Shah
Okay. Thanks. Sir, got it. Thank you, very much sir.
Operator
Thank you. We’ll take the next question from the line of Sarvesh Gupta from Maximal Capital Private Limited. Please go ahead.
Sarvesh Gupta
Yes, sir. So this year, when will this road asset will be sold to the counterparty, missed the earlier communications. So how much of the debt reduction will happen on the console entity and how much of your profit will be booked?
Yogesh Kumar Jain
Profit will be booked at the time of the closing rate after adjustment of the entries and as regards to debt, we already informed that total debt was INR6480 crores of total road assets.
Sarvesh Gupta
So INR6480 crores will go away?
Mr. Devendra Maheshwari
INR8,500 crore, INR6500 crore, approximately, the debt will remain INR2000 crore.
Sarvesh Gupta
And again the INR1,400 crore invested INR1,400 crores invested equity, how much is the equity sale value for this?
Mr. Devendra Maheshwari
Sir, we have invested around INR1739 crores in all the 12 assets.
Sarvesh Gupta
No, for these same assets.
Mr. Devendra Maheshwari
[Foreign Speech]
Yogesh Kumar Jain
12 assets is only INR1,490 crore.
Sarvesh Gupta
INR1,490 crore. And how much are you getting in return?
Yogesh Kumar Jain
It will depend on the closing of the deal, when we will receive the financial because there are certain adjustments. See if this is a material and financially significant information, so we will not be able to share now without intimating to the sales. Our total enterprise value is around INR7,700 crores.
Sarvesh Gupta
Okay. Understood. Thank you.
Operator
Thank you. We’ll take the next question from the line of Vaibhav Shah from JM Financial Limited. Please go ahead.
Vaibhav Shah
Thanks for the follow-up. Sir, for the CIDCO project, what would be our APC share?
Yogesh Kumar Jain
Which project?
Vaibhav Shah
NAINA project?
Yogesh Kumar Jain
95%.
Vaibhav Shah
Okay. Sir, for AP canal, now, is outstanding receivable after the receipt of INR172 crores?
Yogesh Kumar Jain
Excuse me, we stand corrected. For Naina project, our share is 90% of the EPC value. 90%.
Shravan Shah
Okay.
Yogesh Kumar Jain
And AP Canal, we have a outstanding of INR225 crores. Out of that, we regained INR170 crores. The balance outstanding would be around INR55 crores.
Shravan Shah
Okay. And sir, now how do we see the execution panning out for this AP project in the next, in ’25, ’26, ’27?
Yogesh Kumar Jain
See, we are expecting to commence the works in the month of December, because in both canals, main canal and branch canal, still water is flowing for irrigation purpose. Once the water supply stops in these canals, we start from either mid of December or from January. We expect a works turn of INR200 crores to INR300 crores before the end of the current financial year and again next year will be around INR400 crores. We will be able to share some tangible figures only once we commence the work and how it will progress. Maybe in the next quarter we will be able to tell you.
Shravan Shah
And what is the revenue in first half from the project.
Yogesh Kumar Jain
See, No, no, no revenue in the current Q2 because the — we are not able to do any work over there because both the canals are full.
Shravan Shah
Okay. Okay. And sir, lastly, when do we expect the money to come from the asset monetization deal for both the phases?
Yogesh Kumar Jain
First tranche of 10 assets, what my colleague has mentioned, before end of the current financial year, we should be able to realize the money. And the remaining two before end of the Q1 FY 2026.
Shravan Shah
Okay. Thank you, sir. Those are all my questions.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you sir.
Yogesh Kumar Jain
Thank you everyone for your participation in our earning call. In case of further queries, you may get in touch with the strategic growth advisors, our investor relations advisors or feel free to get in touch with us. Thank you.
Operator
[Operator Closing Remarks]