PNC Infratech Limited (NSE: PNCINFRA) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Yogesh Jain — Managing Director
Devendra Kumar Agarwal — Chief Financial Officer
Anil Kumar Rao — Whole Time Director
Analysts:
Kunal Sheth — Analyst
Shravan Shah — Analyst
Unidentified Participant
Sarvesh Gupta — Analyst
Parikshit Kandpal — Analyst
Vaibhav Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of PNC Intratech hosted by Partliola and Karani Securities 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. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Kunal Sed from Karani Securities. Thank you, and over to you, sir.
Kunal Sheth — Analyst
Thank you, Steve. Good afternoon, ladies and gentlemen. On behalf of B&K Securities, I’m pleased to welcome you all on P&C Infra Tech Limited Q3 FY ’25 earnings conference call. We have with us the Managing Director of the company, Mr. Yogesh Jain, along with the senior management team. We will begin with an opening remark from the management, followed by an interactive Q&A session. Thank you, and over to you, sir, for the opening remarks.
Yogesh Jain — Managing Director
Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call. Today, I have with me Mr. Rao, Director, Infra; Mr. D. K. Agarwal, CFO; Mr. D.K. Maheshwari, Senior Vice President; and Strategic Growth Advisors, our Investor Relations Advisors. We have uploaded results and investor presentation on the stock exchanges and company website for your reference. Initially, I would like to mention key update of the industry, followed by the operational development of the company and highlights of the financial performance during the quarter and 9 months of financial year ’25, post which we will be happy to answer your questions. Like the last year, the first 9 months of current financial year also witnessed subdued new project awarding activity by both MoRTH and NHAI. It is understood that total hold on the Bharatmala program, general elections held in June ’24 and delay in acquisition of minimum land required before bidding are the key reason for very low project awarding activity. However, since beginning of fourth quarter of current financial year, awarding activity is getting expedited by both MoRTH and NHAI, as such sizable number of new projects on EPC, HAM and modes are expected to be awarded before 31st March ’25. Highway construction activity declined by nearly 6% in the first 9 months of financial year ’25 to 5,283 kilometers from 6,216 kilometers in the same period of financial year ’24. During the current financial year, execution of already awarded projects severely impacted due to intense and prolonged monsoons and low awarding activities over the past 1.5 years and persistent delay in appointed dates due to nonavailability of land for commencement of construction. Providing peacefully minimum back-end ROW has become critically important for both timely commencement of awarded projects and uninterrupted construction. In recently introduced budget, the government allocated INR2.8 lakh crore to Ministry of Road Transport and Highways for financial year ’25-’26. Out of the total budgetary provisions allocation to NHAI has been increased to INR1.8 lakh crore for highway expansion and modernization programs. To further optimize infrastructure development, MoRTH is implementing a corridor-based approach, prioritizing uniform standard, enhanced user convenience and improved logistic efficiency. This initiative aims to transportation, reduce travel time and lower logistic cost foster better connectivity and seamless mobility across the country. To leverage technological advancement, which is playing a pivotal role in infrastructure, MoRTH is exploring adoption of artificial intelligence in infrastructure, particularly through automated and intelligent machine-aided construction that is called AIMC for project. Notably, our company is at the forefront of this initiative, having implemented automated and intelligent machine-aided construction for the first time in India at Luknow-Kanpur Express project. As part of this state-of-the-art technology fitted with GPS-based 3D machines guidance and control systems for precise grading and paving conforming to design parameters. This technology also ensure real-time monitoring and controlling of operations. This innovative approach is poised to bring revolutionary change in road construction in India. Now coming to the recent update on the company. On the project development side, the company subsidiary Highway Private Limited received.
Operator
Ladies and gentlemen, we have lost the connection to the management. Please stay connected while we reconnect them back. Thank you ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go-ahead.
Yogesh Jain — Managing Director
Yes. Now coming to the recent update on the company. On the project development side, company subsidiary Hathras Highways Private Limited received PCOD for it’s HAM project on 31st October 2024 two months ahead of schedule completion date for. On the asset monetization front, during the quarter, the company received in principle approval from NHAI for the divestment of company’s assets. For the remaining 3 assets approvals are expected by the end of this month. The company has received NOC from 34 lenders for 11 projects. On the project awarding front, the company has received letter of award of 3 EPC projects for an aggregate contract value of INR6,670 crores in the state of Maharashtra. During the quarter, we have received INR108 crores from the government of Andhra Pradesh towards work done for the upgradation project. We are pleased to share that as per the MoRTH order dated 6 February 2025 the disqualification imposed on the company and its 2 subsidiary has been reduced from 12 months to 4 months accordingly we will resume participation in the biding process of MoRTH, NHAI and from 18 February 2025 onwards. Now moving on to operational and financial performance of the company. We have 28 projects out of which are 3 are BOT toll project, 2 are BOT NOT project and 23 are HAM projects. Out of 3 BOT toll project period for 1 of the project toll project concluded on 20 January ’25 and accordingly tolling operation has been handed over to NHAI. Aggregate project cost of 23 HAM project is over INR30,000 crores, which is one of the largest highway HAM project portfolio in the country. Out of total 23 HAM projects 12 projects achieved and COD, 7 projects are under construction, 3 projects achieved financial closure for 1 project agreement was executed with the 24 and document has been executed and submitted to the total investment requirement for the HAM project is INR3,092 crores. Till December ’24, company already invested INR2,283 crore and the remaining equity of INR809 crores is to be invested over the next 2 to 3 years. The internal accruals that would be generated over the next 2 to 3 years should be adequate to meet the above equity investment requirements. Now moving on to our order book. As of 31st December ’24, the company unexecuted order book stands over INR18,900 crores, which includes 3 EPC contract secured by the company in ’25 for aggregate value of INR6,670 crores. Out of the unexecuted order book, highway contract contribute around 75%, while water canal area development and railway project contribute around 25%. In the terms of projects out of total unexecuted order book of INR18,900 crores value of MoRTH including NHAI contract comes to 30% and value of contract awarded by other authorities comes to 70%. Now moving on to the stand-alone quarterly results. Revenue for the third quarter of financial year ’25 is INR1,205 crores. The EBITDA for the third quarter of financial year ’25 is INR145 crores. The EBITDA margin for the third quarter of financial year ’25 is 12.1%. The profit for the third quarter of financial year ’25 is INR83 crores. The PAT margin for the third quarter of financial year ’25 is 6.9%. Now standalone 9 months results. Revenue for 9 month of financial year ’25 is INR4,099 crores. The EBITDA for 9 months of financial year ’25 is INR873 crores, which is higher by 23 percentage compared to INR712 crores in 9 months of financial year ’24. The EBITDA margin for 9 months of financial year ’25 is 21.3%. The profit for 9 months of financial year ’25 is INR585 crores as compared to INR447 crores in the 9 months of financial year ’24, a growth of 31% on year-to-year basis. The PAT margin for 9 month of financial year ’25 is 14.3%. Consol quarterly revenue for the third quarter of financial year ’25 is INR1,470 crores. The consol EBITDA for third quarter of financial year ’25 is INR379 crore. The EBITDA margin for quarter 3 of financial year ’25 is 25.8%. The consol PAT for third quarter of financial year ’25 is INR81 crores. The PAT margin for third quarter of financial year ’25 is 5.5%. Consol revenue for 9 month of financial year ’25 is INR5,065 crores. The consol EBITDA for 9 months is INR1,704 crores as compared to INR1,268 crores in the 9 month of financial year ’24, a growth of 34%. The EBITDA margin for 9 month of financial year ’25 is 33.6%. The consol PAT for 9 month of financial year ’25 is INR740 crores as compared to INR514 crores in 9 month of financial year ’24, a growth of 44%. The PAT margin for the 9 month of financial year ’25 is 14.6%. On the standalone balance sheet side, as on 31 December ’24, our net working capital cycle is 167 days. Our networth on a standalone basis is INR5,353 crores as on 31st December ’24, whereas total standalone debt is INR397 crores. The total cash and bank balance as on 31st December ’24 is INR743 crore. We have a net surplus of INR345 crores, which translates to net debt to equity of 0.7x. On consol basis, our networth is INR5,911 crores, whereas total debt is INR9,332 crores as on 31st December ’24. The total cash and bank balance including current investment is INR1,701 crores. This translates to net debt to equity of 1.58x. With this, we now open the floor for question-and-answer. Thank you very much.
Questions and Answers:
Operator
Before we start the Q&A session, I would like to read out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. The first question is from the line of Shravan Shah from Dolat Capital.
Shravan Shah
Yeah. Thank you, sir. A couple of questions. So first, in terms of the inflow and the revenue front. So now the ban on NHAI and the MoRTH is ending, and we will be able to bid from the 18th of February onwards. So how now we are looking at in terms of the order inflow by March end? And maybe if you can help us for next year also. And there also from NHAI and the MoRTH side, particularly, how much are we looking at in terms of the order inflow by March and next year?
Devendra Kumar Agarwal
See, so far this year, we received orders worth of INR6,670 crores. We are expecting new orders before end of current financial year, maybe 6 to 7 weeks of another INR6,000 crores to INR8,000 crores ix 6,000 crores to INR9,000 crores. So our order book at the end of the new orders at the end of the financial year for the during the current financial year be around INR13,000 crores to maximum INR15,000 crores. So we don’t want to now how much would be amount other but it would be around INR13,000 crores to INR15,000 crores and our other for the financial year FY ’26 also be in the same range, INR13,000 crores to INR15,000 crores.
Shravan Shah
Got it, sir. And now in terms of the revenue, so already, if I exclude the arbitration and everything, so 9 months, we are already down by close to 32-odd percent. So in the fourth quarter, excluding the arbitration, which was there in the last year fourth quarter, INR297 crores, so how we look at the core revenue front, how much are we looking at? And given that now the order inflow will pick up, so for next year because the base itself is low, so how we are looking at the next year revenue?
Anil Kumar Rao
So in the current year, overall, we are looking at revenue which would be lesser by 25% to 30% in comparison to FY ’24. And subsequently in the next year, we are expecting increase in the revenue, guidance would be plus 35% over FY ’25.
Shravan Shah
Sir, when we are saying 25% to 30% lower this year, so this excludes the arbitration. So this is a pure construction revenue we are talking about?
Devendra Kumar Agarwal
This is pure construction revenue. This includes arbitration also because last year also, we have an arbitration of around INR300 crores. So this 25% to 30% decline is inclusive of arbitration what we received during the first quarter of current financial year.
Shravan Shah
Okay. Got it. And now and margin, obviously, we will be maintaining 12% 12% to 12.5% next year, 13%?
Devendra Kumar Agarwal
Yes.
Shravan Shah
Yes. Now if you can share the couple of balance sheet and the project-wise order book data point. So inventory, trade receivable, payable, retention money, unbilled revenue, mobilization advance?
Devendra Kumar Agarwal
Retention money is INR172 crore and mobilization advance is INR671 crores.
Shravan Shah
Sorry, 271?
Devendra Kumar Agarwal
671, mobilization advance.
Shravan Shah
Okay. Inventory debtors payable?
Devendra Kumar Agarwal
Inventory is INR746 crore and debtors is INR1,668 crores.
Shravan Shah
Okay. And creditors payables?
Devendra Kumar Agarwal
INR760 crores.
Shravan Shah
And in debtors, how much is HAM and water debtors?
Devendra Kumar Agarwal
EPC 64%, which is INR1,070 crores and 36% is HAM INR598 crore.
Shravan Shah
And water debtors?
Anil Kumar Rao
Pardon?
Shravan Shah
Water project, how much is outstanding?
Anil Kumar Rao
792.
Shravan Shah
Okay. And a couple of project-wise order book, if you can share, that would be very grateful. So starting with the irrigation project, so how much is outstanding value as on December?
Anil Kumar Rao
It Is 924, sir.
Shravan Shah
Okay. Kanpur Package 1 and Package 2, Kanpur-Lucknow.
Anil Kumar Rao
Package 1 is 238 and Package 2 is 292.
Shravan Shah
Mathura Bypass, Gaju Village?
Devendra Kumar Agarwal
Mathura Bypass 193 crore.
Shravan Shah
And Hardoi?
Anil Kumar Rao
Hardoi almost completed.
Shravan Shah
Okay. Similar would be Gaju Village-Devinagar should also be complete?
Anil Kumar Rao
Yes.
Shravan Shah
And this both Unnao-Lalganj and Meerut-Nazibabad should also been completed?
Devendra Kumar Agarwal
Yes. Completed.
Shravan Shah
And Challakere-Hariyur also completed or something is left?
Devendra Kumar Agarwal
Yes. Challakere that is INR54 crore.
Shravan Shah
And Haryana Rail Orbit?
Devendra Kumar Agarwal
Haryana INR620 crore, 6-2-0.
Shravan Shah
And the last one is Prayagraj Kaushambi.
Devendra Kumar Agarwal
Prayagraj is 469.
Shravan Shah
Thank you, sir. I have more questions. We’ll come back-in queue. Thank you.
Anil Kumar Rao
Thank you.
Operator
Thank you. The next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Unidentified Participant
Sir, I wanted to ask on the net working capital days side of the business. So on an average, what the 90 to 100 days that we used to maintain for the last few years, our net working capital days is on a higher side. I mean how do you look this to be going ahead probably for FY ’26 and further? Can we see the normalized 100 days coming back for net working capital days?
Yogesh Jain
Yes, we are expecting FY ’25 even 105 to 110 days because this is a temporary increase in the net working capital because of the advances given to the supplier because there are 8 projects where we have not started the work. So we have mobilized the contractor then we are giving the advances. That is why it is increased. And secondly, because of the mutual fund around INR440 crores of 31 December as against INR3 crores in March ’24. So because of these 2 reasons, it has increased to INR167 crores. Otherwise, it is 100 to 205 days. It is a temporary phenomenon because as soon as work will start in the project, the bills will adjusted against that advance.
Unidentified Participant
Okay. Got it,sir. What is the kind of order inflow that we are seeing in quarter 4? I mean there were announced I mean there is expected to be a lot of announcement post all the election things have done with, I mean, after the Loksabha-Maharashtra election, et cetera. So and also after the recent is there any major that we are seeing coming in quarter 4?
Devendra Kumar Agarwal
Till December, we have received the order of INR6,670 crore and we are expect around INR6,000 crores to INR8,000 crores by March. So total will be around INR13,000 crores to INR15,000 crores during the FY ’25.
Unidentified Participant
Okay. And what are you seeing any and what would be the order inflow, I mean, expected going ahead in FY ’26?
Yogesh Jain
FY ’26 also we are expecting around INR15,000 crores contracts.
Unidentified Participant
Okay, sir. Got it. Got it, sir. I’ll get back-in the queue, sir. Thank you.
Operator
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Unidentified Participant
So sir, my first question is how are we seeing the order pipeline for FY ’26?
Devendra Kumar Agarwal
See, as our Managing Director has mentioned, for NHAI itself INR1.8 lakh crore budget allocation was made by the Government of India, apart from the internal accruals and the other divestment program they are doing. So we expect a robust pipeline of projects both from NHAI and MoRTH apart from the other clients because the railways and other sectors also funds have been allocated for the infrastructure So we’re looking forward to have a very robust pipeline of projects next financial year. So definitely, we’ll be able to leverage those opportunities to secure around INR15,000 crores of new projects during the FY ’26.
Unidentified Participant
Okay, sir. And are there any major projects for which we are expecting the tenders to be floated in the coming quarter or you can say in H1 FY ’26 and where we will be looking further to participate?
Yogesh Jain
Yes.
Unidentified Participant
So can you name a few major projects?
Yogesh Jain
And also then we’ll be expecting pipeline for the next financial year also.
Devendra Kumar Agarwal
Sir, major infrastructure project to be named, sir?
Yogesh Jain
Yes.
Operator
The next question is from the line of Sarvesh Gupta from Maximal Capital.
Sarvesh Gupta
Sir, what is the stand-alone net debt as of now, sir?
Devendra Kumar Agarwal
The total debt is INR397 crores, sir.
Sarvesh Gupta
Yes. Net of cash, sir, debt minus cash.
Yogesh Jain
Net of cash is surplus of INR345 crores.
Sarvesh Gupta
Okay. So INR345 crores net cash?
Yogesh Jain
Net cash. Yes, net cash.
Sarvesh Gupta
Okay. Okay. And sir, so what we are saying is in the next 1.5 months, so till this 40 days, how much of order inflow has happened in this quarter, sir?
Devendra Kumar Agarwal
We are expecting around INR9,000 crores.
Yogesh Jain
In this quarter, we are expecting INR6,000 crores to INR8,000 crores, sir. And already we have received till December INR6,700 crores.
Sarvesh Gupta
No, so INR6,700 crores is understood, that is for first 9 months. Now in these 40 days till now in this quarter, how much have you received till now?
Devendra Kumar Agarwal
No, as of now, for this quarter till date, we haven’t received any new orders. But going forward, during the next 40 days, we expect to receive INR6,000 crores to INR8,000 crores new orders.
Sarvesh Gupta
INR6,000 crores to INR8,000 crores you expect, sir, and what is the pipeline of bidding on this? I mean what kind of win ratios are we looking at? Because this INR6,000 crores to INR8,000 crores looks very steep to happen in just 50 days for you?
Devendra Kumar Agarwal
Yes, yes. Because see, the non-MoRTH itself, there are projects worth more than INR20,000, INR25,000 worth of projects are there, which have already been floated. And both MoRTH and NHAI floated projects worth of INR1,27,000 crores which are to be bid out in next 5 to 6 weeks, comprising both EPC, HAM as well as toll projects. So pipeline is very huge, the bidding pipeline. So because as you see we, in the past history, during the month of February and March, a large number of projects are bid out, bids received and awarded before end of March. So out of INR1,50,000 crores, what we are expecting around 4% only. So that much projects we are confident of getting before 31st March.
Sarvesh Gupta
Okay. Understood. And sir, this now in terms of your revenues, so even if I adjust for INR300 crores of FY ’24, I get to INR7,400 crores last year, and that had a stand-alone EBITDA margin of around 13.2%. So what would be the sort of the EBITDA margin guidance for FY ’26? Because what you are saying is FY ’26 revenue should be similar to FY ’24, right? So are we looking for a slightly lower EBITDA margin given the change in the mix? Is the NHAI projects being only 30% of our book, giving us lesser margins? So can you explain that, like how do you look at the margins?
Yogesh Jain
See, for FY ’26, as you had mentioned, we are looking at an EBITDA margin of 13%, which will be to the FY ’24 margin. See, NHAI projects are there and there are projects from other clients also. As I mentioned, the ratio is as of now 30-70. So overall, we are looking at a 30% EBITDA margin for FY ’26.
Sarvesh Gupta
Okay. And are the margins similar, sir? Because you are getting a lot of projects from non-NHAI, MoRTH. So how are the margins, same or different?
Yogesh Jain
Margins are more or less same from MoRTH and non-MoRTH projects. So margins are more or less same. So overall margin, you say that would be around 30% in FY ’26. We don’t foresee any decline in the EBITDA margin in FY ’26. So 30% what we are reasonably expecting.
Sarvesh Gupta
And this INR6,700 crore that you have received, this is all Maharashtra, I understand. So many of I think there are some concerns on this MSRDC project, and I think there has been some delays, et cetera. So when do we expect the execution to begin on these projects? And what is the current status of this?
Yogesh Jain
MSRDC, we received 2 projects, Nanded project, which is the expressway project and another project is the Pune Ring Road. In Nanded we already commenced the project. We already commenced the construction. So there we and the Pune also, we are expected to commence the construction during the current quarter because the government after the state assembly elections they expedited the process of land acquisition, possession and giving the land. So we don’t foresee any major issue there. So definitely, these projects will be executed as per the schedule, and we would be able to complete within the schedule time.
Sarvesh Gupta
And the CIDCO project, sir?
Yogesh Jain
CIDCO project also all preconstruction activities we have commenced and we mobilized the resources, and.
Devendra Kumar Agarwal
We have received advance also.
Yogesh Jain
We received the mobilization advance also, first tranche. So CIDCO project also, we are going to commence the construction during the current quarter.
Sarvesh Gupta
So out of this INR19,000 crore of order book, sir, how much are you currently working on and how much is like somewhat away from execution phase?
Yogesh Jain
See, Maharashtra projects are having INR6,600 crores plus for NHAI project we date for another INR3,000-odd crores projects. So we are working around, let’s say, Maharashtra and thing, INR9,000 crores to INR10,000 crores worth of projects we are working on.
Sarvesh Gupta
Okay. So with this INR9,000 crores, INR10,000 crores, sir, we feel confident that next year itself, we can do INR7,500 crores because all the newer projects may not start immediately and it will take up to second half of next year to start many of the newer projects, which we will win. So from this INR9,000 crore order book, which is under execution, can we get INR7,500 crores next year?
Yogesh Jain
INR9,000 crores orders which are coning ongoing projects, will not give INR7,400 crores. Certainly, we’ll get some revenues from these new projects, which we talked about more than INR10,000 crores project. And also then we will be getting some projects before end of the current financial year, again, which will give again some revenue from the Q3 onwards, FY ’26, Q3. So overall, that INR7,400 crores, what we are telling at par with the FY ’24, are otherwise 35% over and above the current financial year, we should be able to achieve the revenue.
Operator
Thank you. The next question is from the line of Ashish Shah from HDFC AMC. Please go ahead.
Unidentified Participant
Sir, a few questions. In the water segment, can you update the status of on-ground execution? Whether there has been any improvement in the recoveries of receivables in 4Q? Because you did mention that there’s some INR800 crores, which was outstanding as of December. So how is the Q4 looking? And what is the outlook for this segment as you go ahead?
Yogesh Jain
See because there is a scarcity of funds from the Government of India. But however, now in the new budget, they allocated more than INR60,000 crores for the Jal Jeevan mission for the FY ’26. So we expect the fund inflow from the Government of India and also matching funds from the state government from new financial year. Nevertheless, state we are expecting some funds from the state government in the current financial year itself before 31st March, from which we should be able to realize our payments, which have been outstanding for quite a few months. And from first quarter of FY ’26, there should not be any issue of receiving the money.
Unidentified Participant
Okay. Also in terms of the projects where you are awaiting appointed date, I think that’s about INR4,100 crores, which you mentioned. When do you expect the appointed dates for these projects, sir?
Yogesh Jain
We are expecting declaration of appointed date before end of the current financial year, that is before 31st March 2025.
Unidentified Participant
Sir, what is the land acquisition status? If you can just spell out by projects, where are you in terms of the current land acquisition in these projects?
Yogesh Jain
Land acquisition has been improved over the last 3 months. Now readily, the exact figures are not readily available. We’ll share with you.
Unidentified Participant
But sir, are we confident that we’ll get some execution cycle before monsoon in these projects or do you think this can all spill over post monsoon next quarter?
Yogesh Jain
No, no. Yes, we are expecting some kind of execution and the contract revenues during the first quarter of FY ’26 before onset of the monsoon.
Unidentified Participant
Okay. Maharashtra projects, you did say that there are some initial mobilization and construction activities have started. But if you can just dwell a little bit deeper on what’s the kind of on-ground status in terms of land available and what kind of execution you would expect from these projects within Q4 and how does next year look? So if you can just sort of spell out how Q4 looks for these projects and what kind of execution you will expect in next year? Because these are very sizable projects, so it’s important to sort of monitor how these projects will shape up.
Yogesh Jain
See, as we have mentioned, out of 3 projects, 1 project we already commenced the construction. We expect some certain revenue in Q4 itself from this project, more particularly Nanded. Other 2 projects also, the construction will be commenced during this quarter itself, but the contract receipts may not be sizable during the current financial year. But nevertheless, from Q1 onwards Q1 of FY ’26 onwards, all these projects will start giving sustainable revenues going forward and all these projects will be commenced in full swing.
Unidentified Participant
But physical work for Pune and CIDCO will certainly happen within 4Q start of construction will certainly happen is 4Q onwards?
Yogesh Jain
Yes. That’s what we are targeting to start the physical construction during the current financial year itself before 31st March because as we have already mobilized a large part of our resources, so we are expecting commencement of works on the ground at these 2 projects also before 31 March.
Unidentified Participant
All right. And sir, last question. You talked about the increase in working capital. One, you said because of the mobilization advances, et cetera, that you have given. There is something else also that Maheshwari, sir, mentioned, but I missed that. So if you can just repeat why this net working capital has increased?
Devendra Kumar Agarwal
It is mainly because of the advances to suppliers. Secondly, we have invested in the mutual fund. money we have invested in the mutual fund, which was INR3 crores in March ’24 has increased to INR440 crores in December ’24.
Unidentified Participant
So sir, when you in the presentation, when you are giving the net working capital number of 167 days or something like that, you are also including this mutual fund investment of INR400 crores.
Devendra Kumar Agarwal
Yes, yes.
Unidentified Participant
Unknown Analyst
All right. All right, sir. And when you gave the cash number of INR743 crores, that includes the mutual fund investment.
Devendra Kumar Agarwal
Right.
Operator
Thank you. The next question is from the line of Securities. Please go ahead.
Unidentified Participant
Sir, first question is with respect to our this HAM project monetization. So what is the kind of this approval is required and when we expect this to conclude?
Operator
Sorry to interrupt. The line for the management has been disconnected. Please wait while we reconnect them back yes, sir. The line for the management has been reconnected. Yes, sir, please go-ahead.
Unidentified Participant
Should I repeat my question again? So I just wanted to ask about this divestment thing. So what is the kind of approval from regulatory authorities required and when at best we’ll conclude this monetization?
Anil Kumar Rao
The NOC required from lenders as well as from the authority. And out of the 12 assets, we have already received the NOCs of 11 projects from 34 lenders as on date. As regard the NOC from authority, out of 11 projects, we have received the principle approval of 8 projects and we are expecting by end of this month, we will receive the NOC from 3 projects from the authorities. So we are expecting that by end of this March ’25 11 assets will be monetized out of 12.
Unidentified Participant
By March ’25?
Anil Kumar Rao
Yes.
Unidentified Participant
And what is the equity IRR we will be making from this project?
Anil Kumar Rao
It will depend on the closing because the equity we have invested in all 11 projects is INR1,619 crores, including gold loan. And what will be the realization actually we will come to know only at the time of closing because certain working capital adjustments are there, it will come to know only at the time of closing only, sir.
Unidentified Participant
Okay. And with regard to INR6,000 crores to INR8,000 crores we are expecting in next 40 days, so this is based on bids already submitted? I mean what is the size of bid we have already submitted and we are expecting this tender to be finalized?.
Operator
Sorry to interrupt, the line for the management has been disconnected. Please wait while we reconnect them back.
Unidentified Participant
This is with respect to order inflow guidance you had given for next 40, 45 days, which is INR6,000 crores to INR8,000 crores. So this is based on the bids already submitted or we are expecting bids to be submitted and then this tender will be awarded before 31st March? And what is the size of bid we already submitted?
Anil Kumar Rao
See, as we mentioned, so whatever bids we have submitted, that is very marginal amount, about INR5,000 crores worth of bids are pending for opening of price bids. But other bids, we are going to submit in the next 2.
Operator
The management line has been connected again. Please go ahead.
Unidentified Participant
So participate in this after 18 February, which will open after 18 February, right, and then you are expecting these bids to be awarded before 31st March.
Anil Kumar Rao
Yes, yes, yes. The awarding activity has been very, very expeditious as we experienced in the past also. So whatever bids will be supporting before third week of March will be awarded before the end of March. So the pipeline is very robust. More than INR1 lakh crores worth of bids have already been floated with a different bid due dates spanning from 18th February till end of March.
Unidentified Participant
And which are the states where we are seeing major pipeline where we’ll be participating?
Devendra Kumar Agarwal
No, no. These bids are whatever bids they floated, these are across the many states from this thing from North to South and East to West. So we have to see really for which state, how many bids have been this. But this is spread across the country.
Operator
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Sir, my first question is in the L1 order. So what is the value of the L1 order?
Anil Kumar Rao
Which L1?
Parikshit Kandpal
This EPC project.
Devendra Kumar Agarwal
That is around INR2,400 crores.
Parikshit Kandpal
But you have not included that in that INR6,700 crores of inflows, right?
Anil Kumar Rao
That is not included in that.
Parikshit Kandpal
So for the first for the Q4, as of now, you have L1 of INR2,400 crores, which where the LOA is expected?
Anil Kumar Rao
Yes.
Parikshit Kandpal
Okay. Sir, second question is on JJM. Now we have close to INR800 crores of debtors in water segment. And first 9 months, if I look at your revenues, so it’s about INR600 crores from the water segment. And maybe this year, you will end up close to if I take Q3 numbers of INR192 crores, somewhere around INR800-odd crores, you will end up. So which means that you already have a year of receivables from this project, which is outstanding. So just wanted to understand, in this financial year, did you receive any money at all from the JJM projects? So if you can help us understand from the start of the financial year till now, what has been the collection in this project?
Anil Kumar Rao
Yes. Yes. This financial year, we have received money. Till October, we have been receiving money till October. Only from November onwards only we are expecting paucity of funds from the till October we have received whatever money now is pending, that is whatever work done towards this and certain money was due in the last financial year that we have released. INR750 crores we have realized this year till October.
Yogesh Jain
It was INR925 crores on March. It is now INR792 crores.
Devendra Kumar Agarwal
Yes, plus which includes INR600 crores…
Parikshit Kandpal
Okay. So INR925 crores was outstanding as of March ’24 end and now it’s less than INR800 crores. So you have received…
Anil Kumar Rao
Yes, yes.
Devendra Kumar Agarwal
We expect to we start receiving the money latest from April onwards. If the state government provides a certain amount, what is out of the 50% money, then we may be getting some amount during the March also.
Parikshit Kandpal
Okay. Just one question, Yogeshji, I mean we I mean, almost the entire industry has been talking for the last 3 quarters on positivity on the NHAI ordering and pipeline being more than INR1.2 trillion or INR1.1 trillion, INR1 lakh crore-plus. And we always remain hopeful last year also FY ’24, we were hoping that orders will come. And we only come to know when we are at Feb end or maybe March that ordering will happen. But I just want your opinion on this. I mean you’re still holding on to that 1 lakh number. So do you think versus last year this time, there’s a high probability of this pipeline converting into order inflows or even for this year, we would end up maybe INR40,000 crores or INR50,000 crores inflow?
Yogesh Jain
You contact Dusal, you know party Bharana to Kolkata which say we are bidding or Arbitation, Landkakata, project land Jada Thie or circulate company.
Parikshit Kandpal
Okay. So basically, this was more of a procedural delay from the land acquisition side. But intent-wise, still the pipeline is looking good and you think that there will still be continuing in this year or next year?
Yogesh Jain
Even pipeline.
Parikshit Kandpal
But sir, I was hearing that something some deliberation has gone in PMO that the quality of roads has gone down significantly, and that’s the reason PMO has advised the ministry to increase so that the qualification criteria which got diluted post COVID and a lot of low-quality contractors came in. So now I think PMO has advised what I mean hearing the PMO advised not to increase the size so that good quality capable financially worthy contractors are able to execute the projects. I mean, is it also one of the reason.
Yogesh Jain
Actually, but it’s a part of.
Parikshit Kandpal
Just last thing, will be eligible to bid for all these projects, right?
Yogesh Jain
Yes.
Parikshit Kandpal
Subject to some conditions.
Yogesh Jain
On the press because documentation manage your own normal documentation to submit.
Parikshit Kandpal
Okay. So now you have clear signal from them that from 18th onwards from 18 morning or midnight of 18 onwards, you’ll be able to bid for all the projects, which will come from MoRTH and NHAI.
Yogesh Jain
In entire India and every department.
Anil Kumar Rao
So we’ll be other side of the mountain from 18th.
Parikshit Kandpal
Sir, congratulations for that. Finally, you could get much needed, yes.
Yogesh Jain
Okay.
Operator
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Sir, what would be your guidance for revenue from the JJM projects for the entire year for FY ’25 and ’26?
Devendra Kumar Agarwal
This year, we see, already we achieved more than INR600 crores. So we are expecting total guidance for the current financial year would be between INR800 crores to INR850 crores. And the next financial year, we are expecting some expedited progress and it would be around INR1,200 crores around in the next financial year. And the government also has increased the JJM tenure until end of FY ’28. So we have a time to complete these projects and put them into operation.
Vaibhav Shah
So remainder should be done in FY ’27, around INR1,700 crores?
Anil Kumar Rao
No, we’ll be progressively putting these projects into O&M mode. We started the process. It’s not like that the entire this thing. As we complete each unit, each scheme, so we’ll be pushing them into the O&M mode in a progressive manner. So gradually, we’ll be able to put all the projects into O&M mode in FY ’27.
Devendra Kumar Agarwal
So will be finished in ’27 entire.
Anil Kumar Rao
Yes, and projects will be.
Devendra Kumar Agarwal
Around INR1,500 crores to INR1,600 crores.
Anil Kumar Rao
Yes, yes.
Vaibhav Shah
Okay. Sir, secondly, on the irrigation side, our order book is around INR924 crores. So we were expecting a pickup in execution in ’25 and ’26. So what would be our revenue guidance for irrigation project as well since you received money as well?
Devendra Kumar Agarwal
See now the water receded in the canal system from the middle of February, we are expecting the resumption of work in the irrigation project. And the next 1.5 months, we should be able to get around INR50 crores to INR60 crores project. And in the next financial year, we are expecting around INR400 crores to INR450 crores revenue from the irrigation project.
Vaibhav Shah
So this should be completed in FY ’27?
Devendra Kumar Agarwal
Yes, that’s ’27. And they already extended given the extension of time for this particular project.
Vaibhav Shah
Okay. Sir, secondly, on the monetization side, last time we had mentioned that we want to monetize 10 assets in this year and the remainder will go into first half or by September or October of next year. So do you maintain the same guidance?
Devendra Kumar Agarwal
Yes, yes. We are maintaining in fact, we are targeting 11 assets this year before end of financial year, monetization and the closure and the transfer of asset before 31st March, 11 assets out of 12. And the remaining assets maybe in the Q1 of FY ’26, latest by Q2.
Vaibhav Shah
So remainder would be only 1 HAM in next year?
Devendra Kumar Agarwal
Yes, 1 HAM in next year. This year, 10 HAM and 1 BOT toll.
Vaibhav Shah
So can you just give the numbers? What would be the equity investment in those 11 10 HAM and 1 BOT and for the last 1 HAM?
Devendra Kumar Agarwal
11 projects, equity, we have infused INR1,620 crores, sir.
Vaibhav Shah
Okay. And for the 1 HAM that will be coming next year?
Devendra Kumar Agarwal
INR190 crores, 1-9-0.
Vaibhav Shah
And what equity valuation we will be getting for the 11 assets, 1,620.
Devendra Kumar Agarwal
Depend at the time of closing because working capital adjustments are there and…
Vaibhav Shah
The number what we are expecting?
Devendra Kumar Agarwal
Yes, earlier, we have given the note about 1.67x of the equity invested at the time of signing of the share purchase agreement.
Vaibhav Shah
Okay. So it should be similar to that number?
Devendra Kumar Agarwal
It is around the same number.
Anil Kumar Rao
Similar number.
Devendra Kumar Agarwal
Similar number.
Vaibhav Shah
Okay. And sir, lastly, for the HAM projects that you are expecting appointed dates, so we are confident to get them by March. So any execution we expect in Q4 or it should be largely next year only?
Anil Kumar Rao
See, Q4, though we are expecting commencement in Q4, the contract receipts and the will not be as significant in the Q4, but we start expecting the revenues from Q1 FY ’26 onwards. That would be the practical kind of a thing.
Vaibhav Shah
And sir, lastly, there was some confusion regarding the revenue guidance for FY ’25 given the bonus and claims that we received last year and this year as well. So for Q4, so versus INR1,200 crores of revenue in Q3, what could be the run rate for Q4? That will be much easier to understand the entire year guidance, it will be INR1,600 crores, INR1,700 crores or can even more?
Anil Kumar Rao
No, it will be closer to it will be around that number.
Operator
Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please go ahead.
Unidentified Participant
Sir, my question is on your order inflow guidance for next year. You said around INR15,000 crores order inflow guidance. Sir, it would be helpful if you could bifurcate into roads or water in the segment-wise?
Anil Kumar Rao
See as of now, we are primarily looking at road sector only. See, whatever projects we got the order, INR6,670 crores, more than INR4,000 crores from the roads of MSRDC. One project is the area development Navi Mumbai airport authority, so development authority. So that is the area development kind of a thing. And the remaining whatever we are expecting it will be essentially from the roads and highway sector only because…
Devendra Kumar Agarwal
Yes, INR1 trillion worth of projects are coming in NHAI itself more than INR1 trillion. So we’re expecting from the primarily from the road sector.
Operator
Ladies and gentlemen, due to time constraint, this was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
Yogesh Jain
Thank you for your time and trust in the PNC Infratech Limited. In case of further queries, you may get in touch with the Strategic Growth Advisors, our Investor Relations advisers or feel free to get in touch with us. Thank you very much.
Operator
On behalf of PNC Infratech, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.