PNC Infratech Limited (PNCINFRA) Q2 FY23 Earnings Concall Transcript

PNC Infratech Limited (NSE:PNCINFRA) Q2 FY23 Earnings Concall dated Nov. 15, 2022

Corporate Participants:

Yogesh Kumar Jain — Managing Director

Analysts:

Mohit Kumar — DAM Capital — Analyst

Shravan Shah — Dolat Capital — Analyst

Jiten Parmar — Aurum Capital — Analyst

Parikshit Kandpal — HDFC Securities — Analyst

Ashish Shah — Centrum Broking Limited — Analyst

Ash Shah — Elara Capital — Analyst

Nikhil Abhyankar — DAM Capital — Analyst

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

Prem Khurana — Anand Rathi Securities — Analyst

Uttam Kumar Srimal — Axis Securities — Analyst

Alok Deora — Motilal Oswal — Analyst

Bharanidhar Vijayakumar — Spark Capital — Analyst

Unidentified Speaker —

Presentation:

Operator

Ladies and gentlemen, good day and welcome to PNC Infratech Limited Q2 FY ’23 Earnings Conference Call, hosted by Spark Capital Advisors India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Bharanidhar Vijayakumar from Spark Capital. Thank you, and over to you, sir.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Yes, thank you. Good afternoon everybody. Thanks for logging into the 2Q FY ’23 earnings call of PNC Infratech. Representing PNC Infratech are Mr. Yogesh Kumar Jain, Managing Director; Mr. B. Sawhney, Chief Financial Officer; Mr. D.K. Maheshwari, Vice President of Finance.

Handing over the call to Mr. Yogesh Jain now for opening remarks. Over to you, sir.

Unidentified Speaker —

Small request. Please read out the standard disclaimer clause before our Managing Director will start the speech. The disclaimer clause, because we will be making forward-looking statements in the speech.

Operator

Sure. Ladies and gentlemen, please note 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 the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

With that, I hand over to the management for their opening remarks. Over to you, sir.

Yogesh Kumar Jain — Managing Director

Good afternoon and season greetings to everyone. On behalf of PNC Infratech Limited, I extend a very warm welcome to everyone for joining us today on this call. I have with me Mr. T.R. Rao, Director-Infra; Dr. Bhupinder Sawhney, CFO; Mr. D.K. Maheshwari, Vice President, Finance and Strategic Growth Advisors, and our Investor Relations Advisors.

We have uploaded the financials result and the investors presentation on the website of the stock exchange as well as on our Company’s website for reference. I will quickly highlight major development in this sector before sharing key happening in the Company and financial performance during quarter two and H1 of the financial year ’23 with you.

As per the Ministry of Transport and Highways, 3,559 kilometers length of national highways built during the first half of current financial year as compared to the 3,824 kilometers built during the corresponding period previous year. Awarding of new projects stood at 4,092 kilometers during the same period compared to 4,609 kilometers awarded during last year, reflecting 11% lesser awarding activity in H1 of financial year ’23. Government recently announced that MoRTH is planning to take over a greater number of state highways having high traffic volume from respective state governments for 25 years period, to develop and upgrade them into either four or six lane national highways. Industry believes that this move would be highly beneficial to roads and highways sector as a whole and would greatly help us accelerating country’s socioeconomic growth as many of the state governments are not able to undertake major capital projects due to paucity of funds. As per CRISIL, weaker movement on highways witnessed a decent recovery during April to August this financial year. This coupled with sizeable hike in user periods owing to higher WPI resulted in significant revenue growth during the period.

Now, coming to the key updates of the Company. We achieved financial closure for three HAM projects; Kanpur-Lucknow Expressway Package 1 and 2 and Akkalkot, Karnataka project with an aggregate bid project cost of INR4,501 crores. Historically, the company has maintained a healthy track record of achieving financial closures within stipulated time, which reflect healthy financial position and credibility.

Now, I will share operational and financial performance of the company. At present, company has a portfolio of 23 projects on PPP’s format, comprising BOT toll, BOT annuity and HAM assets. Out of these 23 projects, we have 18 HAM projects with an aggregate bid project cost of INR24,590 crores. Out of 18, Company has achieved COD and PCOD for five projects, six are under construction, construction agreements executed for seven projects and for three projects Company has achieved financial closure. Out of remaining five PPP mandates, three are BOT toll and two are BOT annuity projects. In terms of equity investment, the total requirement for all these 18 HAM project is around INR2,390 crores, out of which INR1,109 crores infused till September 2022 and the balance will be infused over the next two, three years. The internal accruals generated over the next two, three years should be sufficient to fund the total equity investment.

Now, moving on to our order book. Our unattributed [Phonetic] order book on September 30, 2022 is over INR19,000 crores that includes EPC value of all seven HAM projects for which appointed dates are expected during the current financial year. Out of the total order book of INR19,000 crores, the roads and highways sector is around 65% and water and education project is around 35%. In water supply projects, the company booked a total revenue of INR348 crores till September 30, 2022, which includes INR108 crores revenue booked during the last financial year. Total revenue booked in first half of financial year ’23 is INR240 crores. We expect up to INR760 crores more revenue from water supplies based during the second half of financial year ’23, which would get translated into INR1,000 crores revenue during financial year ’23. As on September 30, ’22, total value of DPR approvals and cover agreement signed for physical execution of projects under phase 1 and phase 2 was INR2,260 crores. It is expected that at the end of financial year ’23, the total value of approved DPRs for execution would be around INR4,000 crores. As such it is expected that net executable work would be around INR3,000 crores at the beginning of financial year ’24 and remaining DPRs are expected to be approved during financial year ’24.

Now, I would present the standalone and consolidated results for the quarter and half yearly ended September 30, 2022. The standalone revenue of second quarter of financial year ’23 is INR1,561 crores. EBITDA for the second quarter is INR207 crores and the EBITDA margin is 13.3%. Profit for the second quarter of financial year ’23 is INR131 crores. Consol revenue of quarter two financial year ’23 is INR1,795 crores, the consol EBITDA for the second quarter of financial ’23 is INR3,326 crores and the EBITDA margin is 18%. The consol PAT for quarter two financial year ’23 is INR132 crores. The standalone revenue of H1 financial year ’23 is INR3,319 crores, which is higher by 16% as compared to INR2,866 crores of H1 ’22. The EBITDA for H1 ’23 is INR465 crores, which is higher by 17% as compared to INR397 crores in H1 FY ’22. The EBITDA margin for quarter two financial ’23 is 14%. The profit for H1 ’23 is INR298 crores as compared to INR229 crores in H1 ’22, a growth of 30% on year-to-year basis. The consol revenue of H1 financial year ’23 is INR3,848 crores as compared to INR3,260 crores in H1 ’22, with a growth of 18%. The consol EBITDA for H1 financial year ’23 is INR845 crores, which grew by 16% compared to INR729 crores for the corresponding period last year. The EBITDA margin for H1 financial year ’23 is 22%. The consol PAT for H1 financial year ’23 is INR373 crores as compared to INR250 crores in H1 financial year ’22, a growth of 48%.

As on September 30, ’22, our net working cycle is 79 days, our net worth on standalone basis is INR3,623 crores as on September 30, ’22, whereas total standalone debt is INR281 crores. As on September 30, 2022, the total cash and bank balance as on September 30, ’22 is INR523 crores. We have a net cash of INR242 crores; this translates to net debt to equity 0.8 times. On consol basis our net worth is INR3,986 crores, whereas total debt is INR5,526 crores as on September 1, ’22. The total cash and bank balance, including current investment in INR1,191 crores, this translates to net debt to equity of 1.09 times.

With this, now the floor is open for questions and answers.

Questions and Answers:

 

Operator

Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Good afternoon sir and congratulation on a good set of numbers. Sir, first question is, the order inflow has been very tepid for not only for us, for the entire industry. And I think we had given order inflow guidance of INR90 billion to INR100 billion. Do you think that it is possible in the H2, given everything?

Yogesh Kumar Jain — Managing Director

See, as you know, the awarding process is normally historically as you already know, awarding process by NHAI and MoRTH during the first half of the financial year has always been lower than compared to awarding activity in the second half of the financial year, any given financial year. Similarly this year also, the first year not many projects have been bid-out and many of them even after bidding out, they have not opened, financial bids [Technical Issues] and awarding has not started. So whatever building target we have given for the financial year F3, it should be around INR8,000 crores to INR10,000 crores. We stick by that and we expect to achieve the business of this amount before the end of the financial year and specifically in the second half of current financial year. And also, as we have a 2:1 kind of highway sector and roads around 66 and 33 in the water sector projects, we also expect around INR3,000 crores new projects in water sector and around INR7,000 crores new projects in the highway sector. We are pretty sure about getting this new business before end of the current financial year.

Mohit Kumar — DAM Capital — Analyst

Sir, on the water segment, is the new orders entirely into JJM and is entirely into Uttar Pradesh, is it the opportunity you’re talking about?

Yogesh Kumar Jain — Managing Director

Yes. That will be one of the focus areas, because JJM, new water projects under JJM and focus areas being Uttar Pradesh and it could be in some other states also, Rajasthan and other states also, but it is primarily from JJM.

Mohit Kumar — DAM Capital — Analyst

Okay, understood. Secondly, where are we in the process of monetization of our portfolio. Have they moved ahead, is there any — can you please throw some color on that?

Unidentified Speaker —

See, we are giving the highest priority to the monetization as we shared with you earlier, though we have total more than 23 projects as our MD mentioned of a fund-based project, we selected eight projects for monetization, that includes HAM assets and one BOT annuity projects. So we had already retained a strategic advisor for running the process. The process has already begun. Out of eight selected fund-based projects, the due diligence has already been commenced by a potential investor for these three HAM projects, which is underway and these eight selected fund-based projects for monetization have a total debt of around INR4,700 crores and a total equity of INR940 crores. So we will update you on the progress as we move ahead, but still we are giving the highest priority for monetization as we said earlier.

Mohit Kumar — DAM Capital — Analyst

Understood sir. Thank you and best of luck, sir. Thank you.

Operator

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

Shravan Shah — Dolat Capital — Analyst

Yeah. Thank you sir. Sir, just to complete the last question. So by end of this year, we should be able to monetize?

Mohit Kumar — DAM Capital — Analyst

We are expecting at least 80% of a definitive agreement for certain projects before end of the financial year.

Shravan Shah — Dolat Capital — Analyst

Okay. And in terms of equity investment, so INR1,100 crores we invested. So what is left in this year and FY ’24 and ’25.

Unidentified Speaker —

Actually we have already infused INR1,109 crores in the HAM project and the balance required is INR1,280 crores and this year in second half, we are expecting INR250 crores, in FY ’24 for around INR250 crores and FY ’25 around INR350 crores.

Shravan Shah — Dolat Capital — Analyst

Okay. Now in terms of the execution revenue guidance, so last time we said INR7,200 crores, INR7,300 crores revenue for this year, that is 15%. So this first half, we have already done kind of a INR3,300 crores. And if I take the same number. So in the second half we expect the same 15%, 16% growth. So is there any update or this is doable or we can do much higher.

Unidentified Speaker —

Our guidance is same. Actually this year we are expecting a growth of 10% plus.

Shravan Shah — Dolat Capital — Analyst

Okay. So we are lowering the number. So the overall revenue maybe lesser than what previously we were thinking. Is there any specific reason or any projects where we are, earlier whatever we have factored and now we are not that confident that we will not be able to get the execution.

Yogesh Kumar Jain — Managing Director

This is due to extended rains in the October month. Also we are expecting 10% to 15% growth.

Shravan Shah — Dolat Capital — Analyst

Okay. And in terms of the margin 13.5%, is it doable?

Yogesh Kumar Jain — Managing Director

Yes.

Shravan Shah — Dolat Capital — Analyst

Okay. And seven HAM projects by March end we will be getting the appointed date for all the projects.

Yogesh Kumar Jain — Managing Director

Yeah. Before end of the March this current financial year, we expect it to get appointment date for all the seven new HAM projects.

Shravan Shah — Dolat Capital — Analyst

Okay. I need a couple of data points on the balance sheet side and the project wise order book. So mobilization advance retention money, if you can help me.

Unidentified Speaker —

Retention money INR150 crores and mobilization advance fee is INR419 crores.

Shravan Shah — Dolat Capital — Analyst

INR419 crores?

Unidentified Speaker —

Yes.

Shravan Shah — Dolat Capital — Analyst

Okay and HAM receivable is — HAM debtors.

Unidentified Speaker —

HAM debtors is INR545 crores.

Shravan Shah — Dolat Capital — Analyst

INR545 crores, okay. And in terms of the project-wise order book, so what is left for Bhojpur-Buxar and Koilwar-Bhojpur?

Unidentified Speaker —

The Koilwar-Bhojpur is only INR7 crore and Bhojpur-Buxar is INR23 crore.

Yogesh Kumar Jain — Managing Director

It was inaugurated by Mr. Gadkari also yesterday.

Shravan Shah — Dolat Capital — Analyst

Okay and Chakeri-Allahabad?

Unidentified Speaker —

Chakeri-Allahabad is INR230 crores.

Shravan Shah — Dolat Capital — Analyst

Okay, INR230 crores. Delhi-Vadodara Package 29 and 31.

Unidentified Speaker —

29 is INR259 crores and 31 is INR289 crores.

Shravan Shah — Dolat Capital — Analyst

INR289 crores. And irrigation project in AP, what would be the value.

Unidentified Speaker —

It is INR896 crores is outstanding.

Shravan Shah — Dolat Capital — Analyst

INR896 crores, so last time I think you mentioned INR850 odd crores. So is there any change in increase in scope or last quarter also the same amount was there.

Yogesh Kumar Jain — Managing Director

No. Actually there is increase in scope and also the build amount INR104 crores. We are considering the original scope only. So INR1,000 crores minus INR104 crores, INR896, but certain work done that will be billed later in the second half.

Shravan Shah — Dolat Capital — Analyst

Okay. And in terms of the capex, last time you said INR100 crores to INR120 crores odd. So we have done only INR22 crore in 1H, so for the full year how much now are we looking at.

Unidentified Speaker —

It’ll be in the range of INR100 crores to INR120 crores in the entire FY ’23.

Shravan Shah — Dolat Capital — Analyst

Okay. And the non-fund based limit and the utilization?

Unidentified Speaker —

Fund-based limit utilization INR100 crores. We have taken the bill discounting of INR100 crores and non-fund based limit is around INR2,800 crore for bank guarantee and [Indecipherable].

Shravan Shah — Dolat Capital — Analyst

Okay, that we have utilized. But our limit remains the same INR5,000 crores for non-fund?

Unidentified Speaker —

Non-fund sanctioned limit is INR5,000 crores and fund-based is INR1000 crores.

Shravan Shah — Dolat Capital — Analyst

Okay. Just a clarification on the JJM project, sir mentioned that INR348 crores revenue till date we have booked, which includes INR108 crores in FY ’22m so INR250 crores. But I think last time we mentioned that we have done INR400 crores revenue till date. So if you can help me with that and how much more revenue. So you mentioned INR768 crores more we will be expecting. So next year, then more DPR will come in. So next year, how do we are seeing in terms of the execution?

Unidentified Speaker —

See, this Jal Jeevan Mission, we are perpetually telling that INR348 crores, which we received the payment and [Technical Issues] and certain work was further done that we will be receiving during the H2 of FY ’23. And as we said, the revenue target in drinking water sector for the FY ’24 would be around INR2,500 crores.

Shravan Shah — Dolat Capital — Analyst

Okay. And last on the debt front, though that is not a concern for us, but still, just INR280 crores, INR300 crores, that we will be able to maintain or we can see a further reduction by end of the year? Debt levels, which is INR281 crores. So can we see some more further reduction by end of year?

Unidentified Speaker —

So, it will be around in the range of INR250 crores because we will take some equipment capex [Technical Issues]. It should be in the range of INR250 crores by March ’23.

Shravan Shah — Dolat Capital — Analyst

Okay. Thank you and all the best sir.

Operator

Thank you. We’ll take our next question from the line of Jiten Parmar from Aurum Capital. Please go ahead.

Jiten Parmar — Aurum Capital — Analyst

Yeah. So my first question is basically, topline has been flat for the quarter. Do we have any execution challenges for this quarter and our consolidated margins are down to 18% from 25% quarter-to-quarter and 20% year-to-year, so any reasons for that?

Yogesh Kumar Jain — Managing Director

There is no specific reason. But the main reason as compared to last year is only because of the one project we are executing Eastern Peripheral Expressway Toll project. We had told the revenue is around INR100 crores, INR102 crores and that project is only at breakeven point. In case, we will remove that project, my turnover and EBITDA — my EBITDA margin comes to 14.6% compared to about 13.26%. So that is the main reason because last year it was not there, this project was not there.

Jiten Parmar — Aurum Capital — Analyst

Okay. And see, there was an answer to the question about monetizing the assets and you mentioned three projects are underway and due diligence. Now you mentioned a monetization figure, but I think line was at that time not clear, so I couldn’t get it, what was that, can you repeat, by the year-end?

Unidentified Speaker —

Yeah. Out of the eight projects selected for monetization in the first lot, these eight projects will have a debt of around INR4,700 crores and equity of INR940 crores. Once if you successfully monetize these projects, to that extent our debt will get reduced and our equity will get unlocked for further investing.

Jiten Parmar — Aurum Capital — Analyst

Okay. So how much of that equity of INR940 crores are we expecting in this year?

Unidentified Speaker —

See, as I said, this year we’re not expecting the conjugation of the deal, but we are expecting signing of definitive agreements before end of financial year for few of the projects.

Jiten Parmar — Aurum Capital — Analyst

Okay. So this equity requirement of around INR1,250 crores, INR1,260 crores, which we have in the next two, three years, what will be the mode of funding for that? I mean, how are we going to arrange for the equity?

Unidentified Speaker —

It will be subsequent from my own generation. But our equity requirement in the INR1,200 crores in next year.

Jiten Parmar — Aurum Capital — Analyst

Right. Okay. The last question I have is on the contingent liability. We carry a large contingent liability. What is the status on that. I see a lot of it is around INR2,900 crores are guarantees to NHAI or something. Apart from that, you have some others also. So can you just tell a bit more about it. Is this standard because I don’t see that in other companies also these high liabilities? So if you can throw some color on that.

Yogesh Kumar Jain — Managing Director

Major contingent liability reflecting in the balance sheet are mainly on account of BG, bank guarantees and LC. One guarantee is for reflecting LDR INR145 crores of NH24 that had been removed and —

Unidentified Speaker —

See, this bank guarantees, [Indecipherable] as we are bidding, we will be submitting bank guarantees for the bid security and also for retention amount also normally we don’t keep any cash retention with the authorities, we submit the bank guarantees and we take our retention, so that we’ll have the cash flows. Second thing is the for performance security also we need to provide, in case of UP projects and all, we need to keep this performance security for five years during the maintenance and defects liability period. But since some of the major projects we completed and we expect to get that retention bank guarantee in a sizable amount and also since one of the projects we completed five years defect liability period also. So we will be getting back our performance securities. It is a continuous process, a rolling process usual, because of the — we are executing 23 projects and also we are bidding new projects. So we don’t think this is any unusual scenario.

Jiten Parmar — Aurum Capital — Analyst

Okay. And are you in a position to give guidance for FY ’24 for revenue as well as margins and order intake.

Yogesh Kumar Jain — Managing Director

See, FY ’24 would be slightly different, but FY ’24, our guidance would be up to 10% and margins should be the same thing, EBITDA margin we will be able to maintain in the same level as in FY ’23 and FY ’22 and order intake also we are expecting in the same lines around INR10,000 crores in FY ’24 also.

Jiten Parmar — Aurum Capital — Analyst

Okay, thank you so much. That’s all from me. Best of luck.

Operator

Thank you. We’ll take our next question from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Yeah, hi. Yogesh, congratulations on a decent quarter sir. [Foreign Speech] On the bid pipeline, so if you can highlight especially on the non-road segment, so what is the bid pipeline and water, railways, that is my first question.

Yogesh Kumar Jain — Managing Director

See, in the water sector as we mentioned, our primary target is under Jal Jeevan Mission projects, where we find there is no constraint of funds. So our primary target would be Jal Jeevan Mission, where as we know, if you see the projects that have been floated by the different state governments, around 20,000, 25,000 new projects are expected to be bid out in the next two, three months. And in other things, as of now our focus is on roads and highway, which will be our focus going forward and the water sector. So we are not particularly looking at other sectors as on date.

Parikshit Kandpal — HDFC Securities — Analyst

Sir, last quarter we had about, so I think if I remember correctly INR8,000 crores of JJM orders. So if you can quantify and you said that about INR23 crores of DPR has got approvals and by this year end, you will have another INR4,000 crores of DPR which will get approval. So in FY ’25, we have balance of about INR2,000 crores coming in FY ’25?

Yogesh Kumar Jain — Managing Director

See, as of now the total value of work in hand, where we got the letter of awards is around INR7,000 crores. So we expect INR1,000 crores execution during the current financial year, another INR2,500 crores around execution in the FY ’24 and the remaining would be FY ’25.

Parikshit Kandpal — HDFC Securities — Analyst

But how much of these DPRs allow, so all these years, you have secured all the DPRs approvals now, is it part of active order book or only a part of this will be moving into execution?

Yogesh Kumar Jain — Managing Director

No. Actually the process is like that. Once the DPRs are approved, we execute cover agreements then only the zero-day starts after the cover agreement. So far, as I mentioned as of September 30, around INR2,260 crores we expect DPRs worth of INR4,000 crores will be approved by before end of the current financial year. So the remaining INR3,000 crores worth of DPRs will be approved during the next financial year, that is in FY ’24.

Parikshit Kandpal — HDFC Securities — Analyst

2024, okay. And sir, other question is, any update on that related party transaction, so how much of the peak outstanding and what is outstanding right now at the end of September, and by when we want to close it to zero.

Yogesh Kumar Jain — Managing Director

That transaction is already closed. There were two transactions of INR30 crores each in FY ’21 and FY ’22, that entire INR60 crores has been repaid to the RPT. So as on date, there is none.

Parikshit Kandpal — HDFC Securities — Analyst

As of September, there is no outstanding on account of the related party transaction.

Yogesh Kumar Jain — Managing Director

As on date, there is no outstanding.

Parikshit Kandpal — HDFC Securities — Analyst

And in future also, you are not looking to do any expansion, anything or any support from the listed entity to RPT, right?

Yogesh Kumar Jain — Managing Director

Yes.

Parikshit Kandpal — HDFC Securities — Analyst

Great, sir. Great to hear that. And just last question, sir. On the Eastern Peripheral revenue contribution for the quarter, so this INR100 crores, INR108 crores is for the quarter, right, Q2?

Yogesh Kumar Jain — Managing Director

Can you repeat, please.

Parikshit Kandpal — HDFC Securities — Analyst

Sir, Eastern Peripheral revenue contribution was how much in this quarter, Q2 [Foreign Speech]?

Yogesh Kumar Jain — Managing Director

INR102 crores.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And on that, you had breakeven EBITDA. So you need not get any EBITDA on that?

Yogesh Kumar Jain — Managing Director

Yeah.

Parikshit Kandpal — HDFC Securities — Analyst

Okay. And just one last thing, sorry for this. Appointed date were expected to come in Q3 for the seven HAM projects, but now it has moved to Q4. So any particular reason? Is there any delay there and how confident are you that you will be achieving it? Some of these will come in Q3 and some of this in Q4. So if you can just give some sense out of the seven, how much, how many appointed dates will come in Q3 or Q4?

Unidentified Speaker —

Total seven projects [Foreign Speech] There is no delay.

Parikshit Kandpal — HDFC Securities — Analyst

Thank you, sir and all the best to you.

Operator

Thank you. Our next question is from the line of Ashish Shah from Centrum Broking. Please go ahead.

Ashish Shah — Centrum Broking Limited — Analyst

Yeah, good afternoon, sir. My question again is on the JJM. The pace of approval seems to be a little slower. I mean we did mention that there is no funding constraint, but still the pace at which, the speed at which we’ve been getting the approvals, I think it is far slower than what we would have originally expected. So any reason that you think this has happened.

Unidentified Speaker —

Generally, Ashish, [Foreign Speech] The total value of contracts including drinking water around INR7,000 crores, value of project approved for execution till September is around INR2,300 crores. [Foreign Speech].

Ashish Shah — Centrum Broking Limited — Analyst

[Foreign Speech]

Unidentified Speaker —

There is no funding issue, regular process is there.

Yogesh Kumar Jain — Managing Director

Actually between what has happened, initially they approved DPRs worth of INR1,550 crores and there were a pause of more than six months because of the local elections, Panchayat Raj elections and other elections and followed by the State Assembly elections [Technical Issues] they have not approved any new DPRs because of the code of conduct and other constraints and people are also engaged. So then again they started approving after the assembly elections only. So there was some pause. Otherwise, there is no funding upside. It’s a normal process, but going forward we expect these DPRs will be approved progressively.

Ashish Shah — Centrum Broking Limited — Analyst

Right. [Foreign Speech] experience on the ground. So are we able to take the execution forward and the second half traditionally should be a better period. So what execution we are expecting in the irrigation projects.

Yogesh Kumar Jain — Managing Director

As you said, normally only will get six months working period out of 12 months in a year. Right from July till December, we’re not able to execute any significant works there because the water is left into the canal systems and again we’ll resume our work January onwards. So we have from January till June, we have another six months full fledged working period. Otherwise, you are executing. So we expect this should be completed may be next two to three years the project should be completed.

Ashish Shah — Centrum Broking Limited — Analyst

Right sir. Okay, sir. Thank you.

Operator

Thank you. Our next question is from the line of Ash Shah from Elara Capital. Please go ahead.

Ash Shah — Elara Capital — Analyst

Good afternoon sir. So, my first question was towards Eastern Peripheral. So as I recollect that the Eastern Peripheral was for one year only. So by December 2022, you should be done with it or there is any extension or can you just give us some color on it.

Yogesh Kumar Jain — Managing Director

It is already handed over to NHAI around two months before.

Unidentified Speaker —

On November 10. See, that Eastern Peripheral NHAI as you know, one of the BOT bidders secured this project for next 15 years. So on November 10 at 24 hours, we handed over back to NHAI. So 50 days before the scheduled date of December 31.

Ash Shah — Elara Capital — Analyst

Okay. And are we looking for any more TOD projects going ahead? I mean given that they are margin dilutive even for a brief period. So are we looking forward to bid into those models?

Yogesh Kumar Jain — Managing Director

Not now. As of now, nothing.

Ash Shah — Elara Capital — Analyst

Okay, thank you so much. That’s all from my end.

Operator

Thank you. [Operator Instructions] 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, I would like to know the total bidding pipeline for road projects in H2, and how many — and the amount of bids that you have already put in till date?

Yogesh Kumar Jain — Managing Director

MoRTH and NHAI floated around 85 projects including EPC and HAM. So the aggregate value of these projects are around INR80,000 crores. We are working on around 50 projects opportunities with an aggregate estimated project cost of INR50,000 crores. Bids are staggered up to December and January.

Unidentified Speaker —

There is a worth of INR11,000 crores we already bid out, we submitted our bids. They are under evaluation. The price bids are expected to be opened before December 31, maybe next one, one and a half months. The bids we had already submitted.

Nikhil Abhyankar — DAM Capital — Analyst

And sir, we have received PCODs of multiple projects recently. So do we expect any bonuses from them in H2?

Unidentified Speaker —

PCOD for which, HAM projects or EPC?

Nikhil Abhyankar — DAM Capital — Analyst

Both sir.

Yogesh Kumar Jain — Managing Director

We are expecting bonus from EPC Gujarat, Delhi-Vadodara Expressway on both the projects.

Nikhil Abhyankar — DAM Capital — Analyst

What will be the quantum of it sir.

Yogesh Kumar Jain — Managing Director

See, these projects have a scheduled completion, original scheduled completion of April, May next year. So we’ll get to know maybe around two months, we are expecting in each.

Nikhil Abhyankar — DAM Capital — Analyst

Sure sir. And sir I did not earlier get the unbilled revenue as of September. So what is the value for it.

Unidentified Speaker —

Around INR74 crores, INR75 crores.

Nikhil Abhyankar — DAM Capital — Analyst

Okay. And sir just a final question, sir. So the provision have increased. It is a very minor amount to INR15 crores, but it has increased from INR1 crore to INR15 crores. So what exactly is this provision.

Unidentified Speaker —

That is on account of the provision of the taxation, Tax Act.

Nikhil Abhyankar — DAM Capital — Analyst

Okay.

Operator

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

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

Good afternoon, sir. And thanks for taking my question. Sir my first question is on the competitive intensity. Last couple of years we have seen very high competition for road projects. So what is the kind of competitive intensity that we expect this year and also a similar question for the JJM or the water projects that we’re targeting.

Yogesh Kumar Jain — Managing Director

See, as we know that due to dilution of criteria for the bidding both in terms of network and turnover and other things and also they dispensed with the requirement of bid security as a part of AatmaNirbhar Abhiyaan. So the competition was much steeper, much aggressive. Now the bid security requirement they reintroduced and also the eligibility and the experiential criteria and more criteria is also expected to be restored. So competition would be less, but if you see typically, competition for EPC projects in other will be more than the HAM projects and also competition for the largest size of projects will be lesser when compared to smaller size of projects. This is the thing. If the project size is more, the competition will be less and where the fund-based projects competition will be less and compared to non-fund-based projects.

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

And for JJM projects?

Unidentified Speaker —

You can say high-level competition is not there

Yogesh Kumar Jain — Managing Director

Correct. Because of the experiential criteria set forth.

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

Sure. A couple of data questions from my side. First if I could get the toll collection on the various projects this quarter?

Unidentified Speaker —

At the OMT project, Kanpur-Ayodhya it was INR100.5 crores and Kanpur highway INR18.5 crores, Bareilly-Almora INR13.5 crores and MP highways lower within INR4.7 crores and Raebareli-Jaunpur INR32.16 crores and [Indecipherable] INR102 cores.

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

And sir, I missed the pending equity commitment for second half FY ’24 and ’25, would be great if you could repeat it.

Unidentified Speaker —

Second half commitment is around INR250 crores and FY ’24, it should be INR450 crores.

Parvez Qazi — Edelweiss Financial Services Limited — Analyst

Okay. Sure. Thanks. All the best for the future.

Operator

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

Prem Khurana — Anand Rathi Securities — Analyst

Yeah, thank you for taking my questions. Sir, my question was with respect to our guidance for FY ’25. If I heard you right, I think the target is around 10% growth in FY ’24, but I think somewhere in your comments, I mean you mentioned that you expect water or rather JJM water to kind of contribute almost around INR2,500 crores in FY ’24 versus the INR1,000 crores that you’re expecting in FY ’23. So there is a jump of almost around INR1,500 crores odd in water itself. So does it mean we are targeting lower revenues in road segment, because the overall growth that you’re talking about for FY ’24 is only around INR700 or are we being a little conservative on the overall guidance?

Yogesh Kumar Jain — Managing Director

This is on conservative side because we are expecting appointed date in our HAM projects. So after appointed date, we can give proper guidance.

Prem Khurana — Anand Rathi Securities — Analyst

Sure. And also I mean if you can help us with the execution timeline for the water projects. I mean is it — so once we have DPRs approved and you have zero-day, how many months does it take you to be able to kind of finish and how has our experience been, are we now you able to stick to your timeline, I mean, which I mentioned in the document that you will finish these projects at this time or these many months?

Unidentified Speaker —

Post-signing of the cover agreement, means after approval of the DPR and signing a fair partite agreement followed by cover agreement, post signing of cover agreement, we will have a 15-month period for execution and testing, and commissioning. So we should be able to complete within 15 months, except in few places where there is a delay on part of the client regarding the provision of land for the pump house and other things and also on the approval process, approval of [Indecipherable] into the site and other things, but we should be able to complete within 15 months from the respective dates of signing of cover agreements for these programs.

Prem Khurana — Anand Rathi Securities — Analyst

Sure. Thank you. All the very best for the future.

Operator

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

Uttam Kumar Srimal — Axis Securities — Analyst

Thanks for the opportunity. Sir, you have given bidding pipe INR80,000 crores. So can you bifurcate between EPC and HAM, what would be the proportion of EPC in HAM in this bidding pipeline of INR80,000 crores?

Yogesh Kumar Jain — Managing Director

It would be something like 50%-50% you can say, maybe HAM slightly higher than EPC.

Uttam Kumar Srimal — Axis Securities — Analyst

Okay. And sir, last one How much equity investment will be done in FY ’23 — balance equity investment in FY ’23?

Yogesh Kumar Jain — Managing Director

INR240 crores.

Uttam Kumar Srimal — Axis Securities — Analyst

INR240 crores?

Yogesh Kumar Jain — Managing Director

In the second half.

Uttam Kumar Srimal — Axis Securities — Analyst

INR240 crores?

Yogesh Kumar Jain — Managing Director

In the second half INR250 crores.

Uttam Kumar Srimal — Axis Securities — Analyst

INR250 crores. Okay, sir. That’s all from my side. Thank you.

Operator

Thank you. The next question is from Parikshit Kandpal from HDFC Securities, please go ahead.

Parikshit Kandpal — HDFC Securities — Analyst

Thanks for the follow-up. Sir, any idea on any new big state projects coming besides the NHAI projects, in UP or any other state.

Unidentified Speaker —

As of now, we don’t see any major projects coming from the state government because most of the state governments they have state highways as mentioned by our MD, these states they want to give it to the central government for their development. So in the maybe next two to three months, we don’t expect any major for this in the highway sector coming from the state governments.

Parikshit Kandpal — HDFC Securities — Analyst

Sir, greenfield [Indecipherable], any major mega projects of states you are expecting like Maharashtra government recently announced some big projects, do you think any of these will be coming in the next six months.

Unidentified Speaker —

So we will share with you, so we are not specifically focused upon those bidding opportunities. We will share with you.

Parikshit Kandpal — HDFC Securities — Analyst

And sir, second question is on this monetization piece, you said about six HAM projects, one BOT and one annuity, about INR940 crores of equity invested. But you said some of these may happen, so is it that there is a pick and choose or there will be one investor, multiple investors or how are you looking to monetize this.

Unidentified Speaker —

It is not pick and choose. See, out of six projects, five projects we already achieved the PCOD and few projects we achieved the final COD and one project we are expected to achieve the PCOD maybe next one month. So these are the projects which are operational, even one BOT toll and one annuity project also are operation in progress. It is not — but as we progress, as we complete — competition of construction and achieved the PCOD, then accordingly we will give the priority. Of course now NHAI has reduced the lock-in period six months from the PCOD. So all these projects are, out of eight projects, seven projects are eligible for the equity divestment.

Parikshit Kandpal — HDFC Securities — Analyst

And this will be the one investor or looking at multiple investors.

Unidentified Speaker —

We are looking at multiple investors. We already retained a strategic advisor for handholding and just looking at the potential.

Parikshit Kandpal — HDFC Securities — Analyst

But we have not entered into any exclusivity with anyone, right, as of now.

Unidentified Speaker —

No. So far not.

Parikshit Kandpal — HDFC Securities — Analyst

Okay, thank you.

Operator

Our next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.

Alok Deora — Motilal Oswal — Analyst

Sir, good afternoon. So most questions are answered. Just a couple of questions. One is of this INR19,000 crores order book, how much is currently under execution at this point of time.

Unidentified Speaker —

Out of INR19,000 crores around INR12,000 cores projects are under execution. See, if you precisely go for the sector of the road projects, it will be around INR10,000 crores, because the road project is only around INR2,300 crores projects approved and HAM projects, another INR7,000 crores appointed dates are to be cleared. So it will be around INR10,000 crores.

Alok Deora — Motilal Oswal — Analyst

Sure. And sir, in one of the previous questions, you mentioned that after the DPR, it takes 15 months to get it kind of completed. So just wanted to understand when you receive these projects, so typically how we should consider the execution timeline, because the DPR will take its own time and then the execution will start and then there will be — there could be some delays in the DPR execution. So just if you could indicate what is the typical timeline we should consider for these kinds of projects?

Yogesh Kumar Jain — Managing Director

See, typically from the dates they give us, they give us the list of villages and also they give us the land for surveys and all. So DPR and approval of the DPR in the execution, testing, and commissioning 15 months or five months for this thing and four months — through four months. So 24 months from the day they give us the list of village. This specifically say out of a district, you go ahead with this gram panchayat, so from that zero point, it takes 24 months.

Alok Deora — Motilal Oswal — Analyst

Just last question and so you mentioned your bid for certain projects, bids are yet to open, this would be all HAM projects?

Yogesh Kumar Jain — Managing Director

They are EPC and HAM both.

Alok Deora — Motilal Oswal — Analyst

Okay, that’s all from my side. Thank you. All the best.

Operator

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

Shravan Shah — Dolat Capital — Analyst

Yeah. Thank you. So sir, when we are saying that we are looking at INR7,000 crores odd inflow in roads, so mostly this would be INR5,000 crores odd would be from the HAM?

Yogesh Kumar Jain — Managing Director

So we are expecting from both sides in EPC and HAM. We will see.

Shravan Shah — Dolat Capital — Analyst

My point was because the competition would be high in the EPC. So that’s why I was trying to understand, can the proportion would be 60%, 70% of the INR7,000 crores would be on the HAM.

Yogesh Kumar Jain — Managing Director

Maybe because HAM projects are more than EPC.

Shravan Shah — Dolat Capital — Analyst

Yeah. And second, sir, last time we said, we are expecting bonus on Mumbai=Nagpur also and Aligarh-Moradabad by March ’23, we will be able to see. So, any update on that?

Yogesh Kumar Jain — Managing Director

Aligarh-Moradabad, it is in the process and you can see Samruddhi Expressway is also in process.

Shravan Shah — Dolat Capital — Analyst

So, by when, if it is and then if it comes, what would be the broad value of the bonus?

Yogesh Kumar Jain — Managing Director

See, this Aligarh-Moradabad, we believe that we had already mentioned the bonus is around INR15 crores, that still we expect it before current financial year. In case of Mumbai-Nagpur Samruddhi Expressway, the state government has to take some policy decision on the payment of bonus, because we completed before the extended completion time because there was a COVID affected period. So how this government will take a view on that, we will see. Otherwise, we will make a request for considering the bonus.

Shravan Shah — Dolat Capital — Analyst

Okay, thank you.

Operator

Thank you, ladies and gentlemen, that was the last question. I now hand the floor back to the management for closing comments. Over to you, sir.

Yogesh Kumar Jain — Managing Director

Thank you everyone for your participation in our earning call. In case of further queries, you can get in touch with the Strategic Advisors, our Investor Relations Advisors or feel free to get in touch with us. Thank you.

Operator

[Operator Closing Remarks]