Power Mech Projects Limited (NSE: POWERMECH) Q2 2025 Earnings Call dated Nov. 13, 2024
Corporate Participants:
Nani Aravind — Chief Financial Officer
Rohit Sajja — Vice President, Business Development and Operations
S.K. Kodandaramaiah — Director, Business Development
Analysts:
Natasha Jain — Analyst
Omkar Chitnis — Analyst
Pritesh Chheda — Analyst
Sandeep Dixit — Analyst
Anant — Analyst
Prateek Shah — Analyst
Manthan Jhaveri — Analyst
Tanay Rasal — Analyst
Sunil Kothari — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Power Mech Projects Limited Q2 FY ’25 Earnings Conference Call hosted by Nirmal Bang Equities 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 Ms. Natasha Jain from Nirmal Bang Institutional Equities. Thank you, and over to you, ma’am.
Natasha Jain — Analyst
Thank you, Davin, and good afternoon to all participants. Nirmal Bang Institutional Equities welcomes all of you to the second quarter FY ’25 earnings conference call for Power Mech Projects Limited. From the management today, we have Mr. N Aravind, Chief Financial Officer; and Mr. S Kodandaramaiah, Director Business Development.
I would now like to hand over the call to the management for their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
Nani Aravind — Chief Financial Officer
Thank you, Natasha. So, I have with me Mr. Ramaiah, Director, Business Development; and Mr. Rohit Sajja, President, BD and Operations. So, I’ll request Mr. Rohit to start the opening remarks and then I’ll start the presentation.
Rohit Sajja — Vice President, Business Development and Operations
Good afternoon, everyone, and thank you for attending the investor call. So, I would like to start by giving an overview of the order book initially and also a picture of the new order inflows that we’re expecting for the rest of the year. And then like to touch upon the mining operations briefly and I’ll hand over the call to Aravind to talk about the numbers.
So this year, we are targeting an order intake of around INR12,000 crores across various sectors, namely power, non-power, civil infrastructure, and water sectors. And as of 30th September 2024, we have secured orders worth INR3,100 crores, taking the total order backlog to INR58,000 or a little over INR58,000 crores. And excluding both the MDOs, our unexecuted order book stands at INR18,402 crores. There are INR8,900 crores worth of projects in the pipeline that we have bid for and these are expected to be announced — the results of these projects are expected to be announced in the next three to four weeks.
And apart from this, we are also seeing over the last one, one and a half year, we have been seeing a considerable amount of growth in the power sector and with close to 80 gigawatts of capacity addition planned by 2032. Of this, around 37 gigawatts has been tendered and around 43 gigawatts is yet to be tendered. This translates to a potential opportunity of INR86,000 crores for Power Mech in the civil and mechanical workspace and that to only the construction. This includes both the boiler turbine generator areas and also the BOP civil and mechanical areas. And we are also targeting the BOP EPC space, which would translate into an opportunity size of INR2.1 lakh crores for the next four to five years.
And apart from this, we are also actively exploring a few opportunities in the green hydrogen space, especially the SECI tenders that have come up for the green hydrogen derivatives. So this again, we have tied up with a few electrolyzer manufacturers and we are in advanced stages of forming partnerships with them. So looking ahead, we expect to expand our order book in line with our growth plans over the next five years, focusing on our core sectors like power and infrastructure, while also diversifying into green energy.
And talking a little bit about the MDO business, we have made significant progress over the last one year in both MDO projects. And this year, we have the Tasra mine, we have secured. The first Kotre Basantpur mine, we have secured all the permissions and we are about to break-ground probably in the next three to four days. We have secured the forest clearance also to start with the tree-felling activity. So, we expect to extract the first coal produce in the month of January or February this year. And Kalyaneswari Tasra is also gaining momentum. We have completed equipment mobilization for initial mining activities and also received environmental clearance for setting up a 3.5 metric tonnes per annum capacity washery. And till date, we have done an OP removal and coal production of approximately — OP removal activity is going on. We have done around 382 tonnes of coal production.
Now, I request Mr. Aravind to update on the Q2 and half yearly numbers.
Nani Aravind — Chief Financial Officer
Thank you. Good afternoon to you all. The performance for quarter two and six months for the financial year continued as per our set targets for the entire year. The reported total income for Q2 financial year ’24-’25 is INR1,035 crore against INR937 crore in Q2 FY ’24, an increase of 12% year-on-year. EBITDA is INR134 crores as against INR118 crore, growth of 13% and PAT INR67 crore, which has grown by 31% compared to INR51 crore in Q2 FY ’24. So, on quarter-to-quarter basis, Power Mech has demonstrated improvement in overall margin profile.
EBITDA margin has gone up from 12.57% in Q2 FY ’24 to 12.78% in Q3 FY ’25. PAT margin has gone up from 5.47% to 6.43%. The revenue mix for the quarter two FY ’25, mechanical business has contributed INR229 crores against INR148 crore in Q2 FY ’24, showing an increase of 10% growth. Civil business, including railway, water distribution contributed INR395 crores against INR496 crore in Q2 FY ’24, a decrease of 20%. O&M revenues are INR391 crore against INR272 crores in corresponding period last year, reaching a growth of 44%. Electrical business, INR9 crore against INR17 crores, a decrease of 47% year-on-year. Mining business, INR12 crore against zero in Q2 FY ’24.
Other income, INR10 crore against INR5 crore in Q2 FY ’24. So, during quarter two FY ’25, the distribution between domestic business and international business is 95% and 5%, respectively. Contribution from the power sector remained at 66% and non-power contributed 34%. Similarly, the total reported income for six months of FY ’25 stands at INR2,062 crores against INR1,808 crore in half year FY ’24, an increase of 14% year-on-year. EBITDA is INR257 crore against INR223 crore, a growth of 15%. PAT is INR127 crore against INR102 crore in half year one FY ’24, a growth of 24% year-on-year. So, on half year to half year basis, Power Mech has demonstrated improvement in overall margin profile.
EBITDA margin has gone up from 12.31% in FY ’24 to 12.45% half year FY ’25. PAT margin has gone up from 5.66% to 6.17%. The revenue mix for six months, the mechanical business has contributed INR331 crore against INR258 crore in half year FY ’24, showing an increase of 14%. Civil business, including railway, water distribution contributed INR937 crore against INR989 crore, a shortfall of 5%. O&M revenues are INR732 crores against INR524 crores in corresponding previous period, registering a growth of 40%. Electrical business, INR17 crore against INR25 crore, a decrease of 32%. Mining business, INR26 crores against zero during the last year. Other income is INR19 crore against INR10 crore during the last year.
So, during half year FY ’25, the distribution between domestic business and international business is 94% and 6%, respectively. Contribution from the power sector mentioned at 60% and non-power contributed 40%. So, the financial parameters are concerned, net current days excluding cash and cash equivalents have increased from 142 days in Q1 to 147 days in Q2 due to delays in the certification of the works and delays in realization of receivables from the water division resulted in a small increase in the current assets of the company. The debt levels are in control. As on 30th September, the gross debt is around INR611 crore and the net debt stands at INR64 crore. The debt equity ratio as on 30th September ’24 stands at 0.34 times.
So, now I request Mr. Ramaiah to update on the development side.
S.K. Kodandaramaiah — Director, Business Development
Yeah, good afternoon, everybody. Good afternoon, Rohit and Aravind, my other colleagues here. Thanks to this call today. I think Rohit has given an overall picture of where the company is going in terms of the growth patterns and then the revenue side and also the opportunity side in the future and Aravind has given the financial numbers. I think we should continue to be bullish on the market opportunity and availability of opportunities and also the bidding opportunities available. The overall order backlog at the beginning of the year was INR17,362 crores. It has gone up to INR18,402 crores, an upsurge of nearly 6% and the bulk of the booking has happened in the O&M side. That’s a very positive sign. With the order backlog on the O&M, which was INR2,197 crores at the beginning of the year has gone up to INR3,326 crores, almost 51%. I think O&M is one of the key areas of our strength in the operations for topline — not only topline, but more importantly, the bottom line. That is a very positive sign. Of course, in the mechanical and civil, their overall backlog remains the the same. And with overall order booking done about INR3,055 crores in the first two quarters.
The domestic order backlog is around 98.7%. The international operations are 1.3%, mainly related to a lot of O&M jobs which we are pursuing in the Middle East and also West Africa. And the power sector order backlog is about 68% and the non-power sector is about 32%. That shows very well that the power sector is driving the growth and the opportunities are available. Of course, power sector is more comfortable. Non-power sector is the opportunities which we have entered in the big way in the last seven, eight years that continues to be of importance to our growth strategy. But some of the key areas of the developments I can say to start with on the power sector, I think we all know the market is becoming very bullish with the flood of orders coming out. And obviously, this is linked with the huge demand gap which can happen between the coal power and also non-coal power, that is the renewable power which is expected to bring the — widen the gas by 1930-32, leading to grid disturbance and also a lot of power outages also. As a precaution, government has taken a lot of advanced actions in terms of ramping up the capacity of the coal-based plant to work as a backup on the base store operation and that is why the flood of orders are coming out.
And we have seen in the last eight — 10 months to one year, perhaps beginning with Lara where BHEL has taken the NTPC order and then followed with Talcher, Singrauli, then Talabira by NLC, Neyveli Lignite Corporation, Yamuna Nagar by HPCL, then flood of orders from Adani side. Totally, Adani has ordered about 10,920 megawatt in the last couple of months, mainly on BHEL and then NTPC has ordered about 11,580 megawatts. This time giving you a background of one year and then moreover lot of things have happened in the last couple of months and all. And then HPCL, one unit of 800 megawatt, DVC at Koderma, two units of 1,600 megawatt, then NLC, Talabira, of course, that project is going little bit slow.
Therefore, that shows the power sector, the ordering status has gone up to almost INR1,28,000 crores for the BHL itself. Therefore, BHEL is flooded with orders. And recently, the development is the bulk quarters which they have already called for this one Nabinagar, Gadarwara and Telangana, so totally eight units. That L&T was L1, but as a part of the tender conditions, there was an opportunity available BHEL to bid in one of the projects and we have taken the L1 that has already been confirmed now. That is Telangana project around INR1,600 crores. Therefore, overall ordering which has been done by all these customers, Adani, HPGCL, DVC, NLC, NTPC for about 35 sets, compromising 27,300 megawatts comes to almost INR1,55,000 crores because about INR27,523 crores is for the L&T, which will be confirmed because they have been asked to go ahead with the working and then BHEL, INR1,28,000. For that indirectly, it translates a huge opportunity base for us in terms of the ETC business, in terms of steel work, structural works, how the balance of plant works in terms of coal handling facilities and balance of plants civil works. And then as the more and more sets operated and all gets to commissioning, then our O&M opportunities also go up.
From a ballpark basis and a rough calculation, what we have figured out is the opportunity size for the future is about in the power sector, it can go up to INR30,000 crores or more than INR30,000 crores in various areas of the installation, civil, structural, mechanical work and then other areas also. Apart from that, there are BOP opportunities coming because NTPC has taken a principal stand to split the EPC, the overall — bulky — EPC of entire plant into two areas; the main plant with the civil structures in that area and the balance of plant. And for this balance of plant opportunities also will come up and we are in the process of looking at the opportunities in some of the some of the projects like Singareni, which is coming up in Telangana. And then future, when the NTPC comes out, we have to tie up with some of the partners how to bid for all those things.
Of course, Telangana, we are aggressively pursuing that opportunity that has to come with the BHEL because it will be — BHEL has been negotiated from the Telangana side, we have to see how it will take shape. And then there are other tenders also which have been called for the new EPC and other tenders like OPGCL, Orissa, then Ukai, Gujarat, then MPGCL Amarkantak, MPGCL Sarni, Singareni in Telangana, that I had told you. Because NTPC has got a mandate to complete their portion of the ordering and also capacity addition to meet the need by 2030-’32, by end of this decade. Therefore, that will be another 11,440 megawatt on the tendering process. Except 4,800 megawatt, most of the balance tenders will be finalized by end of the year, it should be. Another six months should be possible. That will bring up another INR20,000 crores of opportunities in the power sector segment itself.
Now on the plate, we have got about INR24,000 crores of various opportunities being at the bidding stage and also after submitted in the power plant side, in the drinking water schemes and then in various other non-power segments, that is where Rohit was confident of what is the future, around INR3,500 crores of things could fructify in the next couple of months, two, three months maximum. And then we are still bullish on meeting the targets based on the opportunity size available with so many tenders which under bidding around INR24,000 crores, which is on our radar. So, these are the major things what we have to say.
And then O&M, we have seen a significant improvement. In fact, the improved order backlog of O&M by 50% at the beginning of the year to midway will bode well for improving the topline and more importantly for the bottom line. And some of the key things which has happened is major project at Talwandi we have taken for three into 660 megawatt, that is about INR951 crores. This is one of the largest O&M orders we have ever taken in the market. That was a five-year contract. And therefore, that is why this year, the overall O&M order booking about nearly INR1,860 crores and that bids well for our future in this growth for the profitability also. And some more O&M projects are also expected in this year in the other segments also, in the railways and then I told you about the power sector and then other infrastructure side.
And other little bit of a major investments I can just briefly tell. The steel sector, a lot of investment is going to come up. ISCO Burnpur, is coming with an investment of INR30,000 crores for a 4.5 million tonne capacity and there can be opportunities our side of the work on civil structural and installation business. Then Bokaro also is expected to come up with investments and then Rourkela there is also plan for expansion and investments and there are opportunities in the Middle East also. JSPL is planning to invest INR30,000 crores in the 5 million tonne capacity in Oman. We have got a presence in the Middle East also and Rohit is rigorously pursuing those things, particularly, we have got a huge HR base also in handling dozens of projects in installation and maintenance, operation maintenance, et cetera.
And therefore, and we have got a background of about 7,000 megawatts of thermal sector power plants across the spectrum in the Middle East. That presence and expansion should help us to see if new — with this investments come, we can also try to get in there. This is on the overall perspective. Then the balance investment which will continue to flow in the railways, we expect another couple of years flow will be there with a huge investment of INR1.5 lakh crores to INR2 lakh crores of road sector more than INR2 lakh crores, INR2.5 lakh crores. Then drinking water, residual orders have to be completed now or perhaps under new AMRUT scheme or whatever where it comes and all. These opportunities also will be available. And now the company is quite diversified, widely spread out and then we have got the organization also built up. In fact, the present organization strength, both direct and indirect labor has gone up by about 10% to meet the new businesses which have come not only in the power sector, but also in the O&M and other areas.
So, that is what I would like to say in the start [Phonetic]. Thank you very much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Omkar Chitnis from Trade Brains. Please go ahead.
Omkar Chitnis
Good afternoon. My first question is, I want to know on MDO business because Geological Survey of India has identified several lithium oversights and the Indian government has plans to call a tender for lithium oversights for the coming years. So, are we working on developing additional expertise in mining in comparison to the traditional mining operations in India and globally?
Rohit Sajja
Yeah. Thanks for the question. So right now, our entire focus perhaps is to bring both of these mines to steady state operations or peak rated capacity, which is 9 million metric tonnes per annum and we expect to achieve this in 2028. And we are not looking at other mines at the moment, other MDOs or other coal blocks or mining in any other form. And lithium, we did some work on it and so lithium requires a different skill set, different expertise to mine and extract.
Omkar Chitnis
Okay, sir. Understood. And my second question is on expansion in global market, particularly U.S. In the case of the Trump administration in the first term, he emphasized more on infrastructure development and energy. Are we expecting same infrastructure development in the second term in the U.S. so that we can get more opportunities to enter U.S. market? And any partnership are you planning in U.S. based reforms?
Rohit Sajja
No, sir. Right now we are not looking at U.S. as an expansion strategy, especially for our infra business.
Omkar Chitnis
Okay. Okay, sir, my last question is, earlier you guided a revenue growth of 25% to 30% for FY ’25. What specific strategies have been implemented to achieve this target, particularly based on the current market conditions and competition?
Nani Aravind
We have opening order book of around INR17,000 crore and we are target — for the current year, we are planning to order inflow of around INR12,000 crore apart from the MDO business. So, we have a history of converting the opening order book of 35% to 40% conversion into the turnover. So with that basis, we projected the revenue of 30% growth in the current year. So in ’23 also, we have achieved this 30% target from ’22 to ’23. So that is easily doable target. So, we projected that 25%. So, we are confident of achieving this number during the current FY ’25.
Omkar Chitnis
Okay, sir. Thank you, sir. All the best for the coming quarter.
Nani Aravind
Thank you.
Rohit Sajja
Thank you.
Operator
Thank you. The next question is from the line of Pritesh Chheda from Lucky Investments. Please go ahead.
Pritesh Chheda
Sir, on the coal MDO side, I am seeing continuous delay in the project in terms of execution. So, now both these projects, where exactly are they and for your peak run rates? So, how close are you now to generate those peak run rates or what will be your revenue and PAT around the two projects combined in FY ’25 and ’26?
Rohit Sajja
Yes. The first mine with Central Coal Fields Limited, which is a 5 million metric tonnes per annum one, which we named as Kotre Basantpur, there is a slight delay. There was a delay of four months, I think because of the — initially there were central elections and now state elections. But right now, we are in a position. This week, we have mobilized our resources and we are expecting to start our work any moment. We are just waiting for the last clearance to be obtained, which shall be obtained anytime soon. And this mine, initially we expect it to do around INR50 crores of revenue this year, sir. So, even if we start supplying the first batch of coal in the month of January, if we start extracting overburden in the month of December, which we expect to do by December first or second week, after the tree-felling activity is done. So, we are on track to doing INR50 crores in this mine. So, next year’s plan is to increase the capacity to 400,000 and this is also contractual capacity. And when we do 400,000 metric tonnes, we will do a revenue of INR300 crores to INR310 crores depending on price variation. And this mine is expected to reach PRC, peak rated capacity by 2028. So, we’ll peak in revenues in 2028.
And the second mine, which is named as Kalyaneswari Tasra mine, which is a SAIL mine. We have already started extracting coal and we have extracted 380,000 metric tonnes still date from February 2024 to October 31. And this trend is only going to increase going forward and we are again, SAIL has — we are in terms of washing capacity, we are running a little short because SAIL doesn’t have complete offtake of this resource that we are able to extract. But the situation is going to improve from January, February onwards and we were able to achieve only INR30 crores until Q2, but the next two quarters, there is going to be a significant increase in revenue numbers in this mine. It may touch INR150 crores to INR160 crores. And this again is expected to achieve PRC, peak rated capacity by the middle of 2027-2028, that’s when our washery will also be constructed and we’ll start obtaining the full mining fee. This INR160 crores you mentioned is full year or H2 for SAIL? So, ex of H2. Until H2, we did already 28.
Pritesh Chheda
So, it is 160 plus 28. So for full year, it will be 188?
Rohit Sajja
Yes, sir, yes.
Pritesh Chheda
Okay. Can you tell us the PAT number for the Coal India mine next year at INR300 crore revenue?
Rohit Sajja
Sir, initially next year because the PAT is going to be going to be little less, until we achieve PRC, it’s more so investments that we have to pull in from our side. So, it will hover in the range of 6% to 7%. But once we achieve PRC, the PAT is going to improve significantly, substantially all the way up to 12% to 13%.
Pritesh Chheda
So, you will achieve the peak rated in Coal India mine in FY ’28, right?
Rohit Sajja
Yeah.
Pritesh Chheda
And you will achieve the peak rated in SAIL mine in FY ’27?
Rohit Sajja
In middle, yeah, middle — towards end of FY ’27 or middle of FY ’28.
Pritesh Chheda
Okay. And this 25% revenue guidance that you gave, you give that with the — FY ’25 will be without all numbers or with the coal — MDO numbers?
Nani Aravind
This with including coal MDO numbers.
Pritesh Chheda
Including?
Nani Aravind
Yeah. INR5,500 crores, including coal numbers.
Pritesh Chheda
Okay, sir, thank you.
Operator
Thank you. The next question is from the line of Sandeep Dixit from Arjav Partners. Please go ahead.
Sandeep Dixit
Thank you, sir. Just a couple of questions. So sir, on this guidance of INR5,500 crores in the current year. So, if I just note the numbers, we are looking at a 40% revenue growth in the second half. Am I right in my calculations?
Rohit Sajja
Yes, sir.
Sandeep Dixit
Where is this growth coming from?
Rohit Sajja
FGD, we have done around INR52 crore during the Q2 and the remaining the new orders we received from Mahan and in our new projects. O&M, we received new projects we received during the last year Q1 last year, new orders we received from the various projects. [Indecipherable].
Sandeep Dixit
Basically, the takeaway I get — what I’m taking away is that you have very higher visibility on this INR5,500 crores number? Chances of disappointment are extremely low. Am I right?
Rohit Sajja
Yes.
Sandeep Dixit
Okay. Sir, second question was on the mining operations. You mentioned in the previous answer that the margins will be 6% to 7% until you reach peak rated capacity margin. It’s a PAT margin, not an EBITDA margin?
Rohit Sajja
Not EBITDA, it’s PAT.
Sandeep Dixit
Okay. Fantastic. Thank you. What would be the EBITDA margin in that case?
Rohit Sajja
EBITDA blended will be PRC. When we achieve PRC, it will be blended EBITDA of both the mines together will be around 20% to 22%.
Sandeep Dixit
Right. I think you had mentioned that in earlier calls. Thank you very much.
Rohit Sajja
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Anant from Mount Intra Finance. Please go ahead.
Anant
I just have one question. The inflow is at INR3,055 crores. However, I see there is a revised order you have executed for. Am I right in my calculation or?
Nani Aravind
Your voice, we are unable to get you. Can you…
Anant
Hi, can you hear me now?
Nani Aravind
Yes, little better. Yes.
Anant
Yes. So, your order inflows are at INR3,055 crores for H1 ’25. However, I see there is a revised order of INR593.99 crores from Uttarakhand Pey Jal Nigam Limited. Is that also included in this current order book?
Nani Aravind
Which project you are referring, sir, which order?
Anant
Particular order INR594 crores from Uttarakhand Pey Jal Nigam Limited. You disclosed it on 22nd July ’24. So this seems to be a revised order. And as per my calculation, this is…
Nani Aravind
Yeah. INR230 crore revised is there, so that is also included. Yeah.
Anant
Yeah, so essentially there is a double counting, right, because this order was received in April ’23.
Nani Aravind
No, my opening, I have taken only the difference value of INR230 crores. Change of scope value only I’ve considered in the present status.
Anant
Okay, thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Prateek Shah from Nirmal Bang Equities. Please go ahead.
Prateek Shah
Thank you, sir. Thank you for the opportunity. Am I audible?
Nani Aravind
Yes, sir.
Prateek Shah
Sir, my first question was regarding to the recent slowdown in the steel sector for last three to six months. Have we received any order booking from JSPL that you were expecting or we are expecting any delays on in the capex?
S.K. Kodandaramaiah
I think this IISCO Burnpur is taking shape. Actually, they are first focusing on the supply orders because supply — we had some discussions with some of the Russian companies also. Of course, their qualification issues are there. But the construction and the construction partner contracts will follow another four to five months. Maybe it will follow up and there can be a lot of opportunities, about nearly INR4,000 crores to INR5,000 crores. Of course, we have to see which are the project — which are the packages of importance to us there. But these investments are on the firm footing. I think is IISCO — they have taken a firm footing and then Rourkela also will come up. Rourkela, they’re going to expanding on material handling and other sites also. And then Bokaro, we have to see.
Of course, overall outlook is that SAIL wants to double up the capacity from 25 million tonne to 50 million tonne, something like that. And that is there. Therefore, and then JSPL what I told about Oman is a firm investment they have committed under Vulcan Steel, fully invested to be done by JSPL. And we can take a call based on the opportunity and also what is the type of work it will be available which can be doable by us. Of course, we have got a reference by having done the work in steel plants in Dolvi, Bellary and JSPL Angul. And with those references we can make a try.
Prateek Shah
Okay. Got it, sir. My second question was for the capex for Power Mech for ’25 and ’26. Could you give any guidance on that?
Nani Aravind
To meet our regular revenue growth targets, we are increasing the capex for normal assets of around INR100 crore capex increase we are expecting, sir. Apart from that, we received the washery environmental clearance approval. So there is a requirement of INR690 crore overall capex plan for the washery setup for Tasra project. So, over a period of next two, 2.5 years, two years time, we incur this INR690 crore of overall capex in Power Mech books.
Prateek Shah
Okay. That was helpful, sir. That’s it from my side.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Manthan Jhaveri from Nexus Securities. Please go ahead.
Manthan Jhaveri
Am I audible?
Operator
Yes, you’re audible, sir.
Manthan Jhaveri
So, my question was regarding the order inflow. So, we are guiding as of now between INR11,000 crores to INR12,000 crore of order inflow. And as of now, till date, we have received order inflow of just INR3,000 crores. So, what gives us confidence of achieving like in H2 or remaining seven months of this calendar year? Have you received any large orders?
S.K. Kodandaramaiah
Yeah, INR24,000 crore of this one opportunities are on the track. It is a combination of power plant side and the non-power sector, the infrastructure side, then the metro side, drinking water schemes, etc. Around the 3,500 tonnes are on the firm side should happen in the next one or two months. And then the other things also should come up. And actually in the power sector also, about the new flood of order should come up because all this ordering which has been done by Adani, they are making lot of inquiries. They are interested in our partnership and all and we are working in Mahan and the new projects in Raipur, Raigarh, Mirzapur and also Kawai.
All these projects will definitely come up shortly because they will take a faster decision and then BHEL with a total order booking this on the power sector itself about nearly INR1,28,000 crores. They also have to do a lot of fast tracking in the ordering also. Therefore, there also it is expected. Therefore, what happened in the first two quarters, so there was some slackness mainly because of the elections — the main elections and then the state elections and all. For the third and fourth quarter things last year also similar thing happened. The order improved in the third and fourth quarter and looking at the opportunity size only, we are still confident of those numbers.
Manthan Jhaveri
Fair enough, sir. And sir, on the MDO side, so what can be expected revenues at peak capacity in FY ’28 from both the mines?
Rohit Sajja
INR2,100 crores, sir.
Manthan Jhaveri
And this could be achievable in FY ’28 from both the mines?
Rohit Sajja
Yes.
Manthan Jhaveri
Okay. And other thing was regarding the Adani FGD orders. So, are the FGD orders still slow-moving or is there any traction [Indecipherable]?
S.K. Kodandaramaiah
No. As on today, it is going on, nothing because, we all know it is sub-judice. Matter is sub-judice. There are certain news expressed by different people and segments of the government also. Ultimately, the call has to be taken by the Supreme Court. But what we can say is that like NTPC has taken a firm decision to implement 58,000 megawatts of FGD implementation. Therefore, there is a background of that and we are doing Udupi project of INR963 crores and that some INR300 crores of conversion should happen in this year. Therefore, anything has to come very firmly from the judicial side, no, we will take it that these things will stand and I think that there is lot of sensitivity attached to this aspect of the environmental issues. Therefore, Supreme Court also will take a very measured discussion on that. I think till then we don’t want to make any news, we’ll be proceed with whatever things is available.
Manthan Jhaveri
Okay. Hello?
S.K. Kodandaramaiah
It is to some extent, yes, it is slow-moving because of the ambiguity attached with the Supreme Court judgment waiting and also some of the recommendations made by some of the government agencies.
Manthan Jhaveri
Okay. And so, of the Adani FGD order of INR6,000 crores, which was approximately INR6,000 crores, how much execution has been done?
Nani Aravind
Right now we are operating only Udupi project, sir. We have done roughly around INR180 crores worth of what we have executed and we are having roughly INR200 crores of worth of works we have executed so far.
Manthan Jhaveri
Okay. So, this order book of currently INR17,000 crores, how much will be the FGD of this component?
Nani Aravind
If you keep aside the Udupi project which is running, the balance INR4,200 crore is the — other orders are there, Kawai, Tiroda and other projects.
Rohit Sajja
Out of INR18,000 crores, INR4,200 crores is all these other slow-moving projects.
Nani Aravind
Without FGD, it is around INR14,000 crore orders are available.
Manthan Jhaveri
Okay. And INR14,000 crores, like if we end FY ’25 at approximately INR15,000 crores, INR16,000 crores ex of slowing-moving and we expect 30% or 40% of conversion of these orders in FY ’25. Is that correct?
Nani Aravind
Plus addition of the new year with target of 11,000 addition will be there for the current year.
Manthan Jhaveri
Okay.
Nani Aravind
Out of 3,000 only we received. So another 9,000, we are projecting the current year received.
Manthan Jhaveri
Okay, fair enough. Thanks. Thanks a lot, sir.
Operator
Thank you. The next question is from the line of Tanay Rasal from Nomura. Please go ahead.
Tanay Rasal
Hi, sir. Am I audible?
Operator
You are audible. You may proceed.
Tanay Rasal
Yeah. Sir, thank you for the opportunity. Sir, my question was relating to the thermal power plant that was being tendered out by NTPC yesterday. So, those three power plant are worth around INR80,000 crores. So, what will be our scope of work and what is the opportunity size for those projects?
S.K. Kodandaramaiah
I will again — what I have perhaps touched upon in the beginning is to be brief on that, the order flow which has come on BHEL and L&T together is about nearly INR1,55,000 crores in the last one year. And L&T, they asked to proceed with about 4,000 megawatts for Nabinagar and Gadawara INR27,523 crores. And BHEL also, today, news headline has come also about the Telangana job of INR16,000 crores also. Because they had an opportunity to match the L1 price, even though on all the three areas plants L&T was the L1 based on the tender commission, BHEL is getting that of another order of INR16,000 crores on Telangana, this is boosting up, for this one.
For this, there are the segments of the opportunities on the ETC business, that is the installation business of the main plant equipment and then the civil and structural works. And then some of the balance of plant works in terms of wherever you can take coal handling and other ideas and balance of plant civil works and apart from that, that itself comes on about INR30,000 crores of opportunities. Apart from that, what BHEL and this Adani is that Adani has only placed order on the main plant that is the BTG for about 14, let’s say 10,900 megawatt. No, all these plants for facilitating the completion of the main plant, they have to order the balance of plant works. There are lot of other miscellaneous works like coal handling, material handling, then ash handling, then water systems and all. Therefore, those will also come for tendering and we have to see where we can fit in.
But NTPC also precisely also for this 6,400 megawatt which they are now almost everything is in the pipeline for both BHL and L&T, these also balance the plant, they have to tender it out. That — they cannot delay it, that will also come as an opportunity. That’s why and more than that, I told you, another 14,000 megawatts — sorry, 11,440 megawatts tendering is in the pipeline that has to happen. Therefore, the next two to three years, two years at least, there’ll be a lot of flow expected on the power sector business.
Tanay Rasal
Okay. Sir, thank you for this. But what is timeline when BTG is tendered out? So, when is the balance of plant usually gets tendered out to you? Any timeline?
S.K. Kodandaramaiah
Balance of plant, they should be doing it because they cannot delay it. In a couple of months, it should happen because already they would have done the documentation, maybe they have to call the tenders and what packaging they would do, whether a single package or a multiple package that has to be seen by NTPC, whereas in the case of Adani, they have got in-house capabilities to do package-wise tendering in terms of various areas like mechanical, electrical and then civil packages and structural packages. That also they will be starting it in all those areas.
Tanay Rasal
Okay. Thank you, sir. Yeah. That’s it from my side.
Operator
Thank you. The next question is from the line of Sunil Kothari from Unique PMS. Please go ahead.
Sunil Kothari
Thank you, sir for opportunity. I’m little new to the company. So sir, would you like to share something more about — it seems the opportunity is very huge, maybe in a year or two, it will accelerate for next four, five years. So, which are the area where you feel you’re required to strengthen your inside capability in terms of management, team, equipment, capex? Where are you feel you required to create more capability?
Rohit Sajja
Yeah. Thank you. Thanks for the question. I feel we have to, we are working towards increasing capability in the civil space, especially because it’s relatively compared to what our core activities in the power sector, especially mechanical works the company was founded on. So, civil works is what we think we have to and we are working on it. We have been enhancing our teams, especially at a leadership level and also at the ground level, execution teams. And we are also — we are gearing up to become adding more engineering capability within the organization, so to take up more engineering procurement and construction contracts, not an entire power plant like Ramaiah said and I had touched upon earlier.
Parts of a power plant where we think we can build on our 25 years of experience, like BOP is something that we thought we could do. So, we are trying to build some engineering expertise for the next five to 10 years to be able to cater to decent amount of BOP PC jobs. And naturally, I think O&M, we are making good strides in the O&M space, operational maintenance of power plants, but they still — we feel there is still a lot to do in terms of skill enhancement and the kind of power plant, thermal power plants especially that are going to come up over the next five years to 10 years. So, we need to be ready with numbers there, more than quality or skills, we need to be ready with number of people because the last 10 years have seen a lot of people not join this sector. There is a dearth of talent.
Sunil Kothari
And sir, you can talk about just covering your vast experience of the past and the industry which made a lot of mistakes and got so much into trouble. So, what has changed? What precaution we are that we do not make mistakes or we — even if there is something wrong, we can come out maybe with little injury because ultimately infrastructure and related all these things, sometimes at some — over a time, it creates a very challenging environment in terms of competition and in terms of payment, in terms of project stalling and all things. So, how prepared and ready we are with our past experience that we will not make mistakes and will take care for future.
S.K. Kodandaramaiah
So I think, as Rohit has said, we are a 25 year old company, lot of learning has gone into the system and perhaps on O&M sector, perhaps we are the — we are in the front side. We are the leaders in doing the things and we are not keeping with that. We are trying to strengthen the organization set up for the quality and the skill for the people. That is where the value addition comes there. But in the overall perspective, particularly in the normal installation job there is a routine job, but lot of bull work is required in terms of proper resource planning.
Our planning and project management systems have to always be on track. Of course, we have got a very robust system on that. Perhaps it is front led by Mr. Kishore Babu himself many times, he goes to the sites and sees the problem-solving approach and Rohit also is doing the same thing and we have got a lot of leaders in different segments. We’ve got 10 SBOs, for example, which is various segments and all who are specialized in various areas and that specialization is being strengthened in terms of engineering procurement also with some of the new blood we have taken with lot of experience.
But from the customer side, the major issues are fixing the overall scope definition of the project. That is a very big task, particularly the standard packages of power plant, there is nothing bigger challenge. Like Adani is doing like a very routine thing because they are quite used to it. NTPC is quite used to it. BHEL, the problem with BHEL maybe working capital issues can be there. Otherwise they have got a huge capacities, 15,000 megawatt capacities. There have got lot of quality people, everything is there. Only thing, the supply chain and then working capital, that is where these type of projects can have some issues here and there. And more or less, in most of these sites, the problem what happens, we have seen many of the projects are delayed due to access issues because the land is not fully available. There are other statutory clearances are not taken, forest clearances are not there, right of the way is not there.
And then these are the things when your interface, when the project starts with a clean slate, then the budget will go faster. But when the project is taken and 50% land and 50%, the progress with the acquire it, then the problem starts. Then the whole thing gets a little bit of an issue, that delays and all those things. The proper integration of engineering, supply chain, manufacturing and more importantly, the construction, which is our specialization, that has to be integrated. Ultimately, customer has to do it and everybody has to do their duty into that.
But we are much better doing things better. I don’t think those days are gone where projects will take to how much of delay, power plants are being put up in three years now. It is not such a — three to four years it is being put out. And then even railway jobs and then road projects are also coming very faster. We are also experiencing that. We have done many of the road projects and the railway jobs. We are doing 24 railway jobs, a lot of learning is there and it is doable. Therefore, the challenge comes when we do with the engineering, supply chain side that is where a lot of care is required, a lot of working capital management is required and a lot of pushing around the engineering and supply, procurement and the execution has to be properly interfaced. And the same thing goes up also in the customer side also. They have to do ordering in time, they have to get the access in site, then they have to find their engineering specifications, general specifications in time. All these things are a standard practice, which has to be followed, but sometimes there are some delays that we have to make it up somehow.
Sunil Kothari
Great, sir. Just last question. How you see the competitive scenario happening or changing now?
S.K. Kodandaramaiah
You mean to say our area of the business?
Sunil Kothari
Yes, sir.
S.K. Kodandaramaiah
Now, I will tell you two, three areas. Perhaps in the power sector, we are the peers now. I can boldly say that because of the strength we have established. In fact, today the capacities what we built-up in supervision, engineering, engineering people, site execution and then supply chain in terms of the labor, piece rate workers, we can say around 15,000 to 16,000 people are deployed on the various sites for the labor itself. That shows the strength of the organization. Perhaps very few organizations have got that capabilities. Therefore, that drives us into the front compared to the others, particularly with the private customers like Adani.
Even BHEL also doesn’t feel that they have got such a big competition because now so much of tendering has to be done, nearly about 23,000 megawatts they have got on their plate and their capacity is 15,000 megawatts on paper. Of course, over the years because of the lack of interest in the power sector, the annual capacity has come down to 3,200 megawatts per year. Now they have to ramp up to 8,000 megawatts to 10,000 megawatts, then 12,000 megawatts to 14,000 megawatts in the next three, four years. Generally, this 80,000 megawatts can be achieved by end of the decade. Therefore, these are the areas they have to — everybody has to hop in and get across their acts.
Sunil Kothari
Yes, sir. Thanks a lot, sir for very detailed answer. Thank you very much.
Operator
Thank you. The next question is from the line of Manthan Jhaveri from Nexus Securities. Please go ahead.
Manthan Jhaveri
Hello?
Operator
You are audible, sir. Please go ahead.
Manthan Jhaveri
Yes. Sir, so on this MDO order, you said that INR2,100 crore will be the peak revenues in FY ’28. So from FY ’28 onwards, this INR2,100 crores will be recurring revenue for every year or is there some different calculations from FY ’28?
Rohit Sajja
Yes, sir. It’s going to be an annual recurring revenue for the next 25 years excluding the price variation. So you include — yeah, excluding…
Manthan Jhaveri
So, approximately INR2,000 crore will be recurring revenue for the 25 years from this mine? And this won’t be related to offtake or…
Rohit Sajja
It won’t be for 25 years, I’m sorry, it’s going to be for 23 years because we — two years for development.
Manthan Jhaveri
And sir, as our order book is gaining traction in O&M side and you also mentioned that O&M has relatively higher margins than our other segments. So, is there any scope of further improvement in margins? We have been consistent around in this 11% to 12% band. So, is there any further scope of improvement since our O&M order book is improving?
Nani Aravind
Yes, sir. There is a possibility because the moment we increase our O&M segment and MDO segment added to the portfolio, there’ll be expectation of 1% to 1.5% growth in EBITDA margin over a period of next three to four years.
Rohit Sajja
And overseas is also contributing quite significantly to our O&M revenues. Last year, we did overseas O&M of around INR200 crores. And this year we anticipate to do INR235 crores to INR240 crores. So, you can expect to see the same trend over the next seven to eight years, overseas O&M growing at a rate of 30%, 35% CAGR and EBITDA margins are in the range of 17% to 19% in the overseas.
Manthan Jhaveri
Overseas O&M is 17% to 19% you are saying?
Rohit Sajja
Yes.
Manthan Jhaveri
And so can we expect improvement in H2 of FY ’25 in EBITDA margins?
Nani Aravind
Yes, sir, because the turnover will be more in H2. So, the O&M also with new projects we added during Q2. So, there is a chance of getting more margins in O&M side. So, we may get more margin improvement in the — here also.
S.K. Kodandaramaiah
One more thing, the new installation jobs which is coming up in the boiler and turbine packages, the realization of the rate per tonne is better than the previous years. That can also bring some better margins.
Manthan Jhaveri
Okay. And sir, since we are operating these two large MD orders. So, in terms of capability and operational capabilities, is this somewhere hampering our bidding in other lines of business or it’s not affected in terms of manpower and everything?
Nani Aravind
So these two MDOs were operating under separate SPV, sir. So there is separate manpower. We are handled by the separate team. So, Power Mech team is only supervising as a promoter. We are monitoring the operations of the SPAs. So, there is no impact on the mining operations on the existing end.
Manthan Jhaveri
Thanks a lot. Thanks a lot, sir.
Operator
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Ms. Natasha Jain for closing comments. Over to you, ma’am. Ms. Natasha Jain you are not audible.
Natasha Jain
Am I audible now?
Operator
Yes, you are audible, ma’am. Please go ahead.
Natasha Jain
Yeah. Thank you. I would now request the management to give closing remarks, if any.
S.K. Kodandaramaiah
Yeah. I think we have touched upon many aspects of the business growth, the opportunity size available, the revenue growth and the EBITDA margins, how it should be further strengthened in the coming months and all. What we can say is that the investment climate is pretty good in the power sector, in the non-power sector, railways, infrastructure and then other segments also. Therefore, the company continues to be bullish on its growth path, INR4,200 crores last year and we should touch upon INR5,000 crores, around that or little bit more. In the last two quarters always the revenues will be more.
And Rohit has given broad spectrum of the order flow expected and the figures and looking at the opportunities available, we should try to get to whatever is possible. And the opportunities available will be more in the coming years with the government is fully committed for more and more investments in energy sector, infrastructure sector, and then so many other sector and then steel sector also. Therefore, we have to see where all the green hydrogen, which Rohit has touched upon. Therefore, there are new segments also is coming up and then we’ll keep focusing on new segments. That is one of the USPs of Power Mech. We will always look for new opportunities and that is how our growth should be sustained.
Thank you very much.
Operator
Thank you, sir. That concludes the conference. Participants can now disconnect their lines.
Rohit Sajja
Thank you.
Operator
[Operator Closing Remarks]