Power Mech Projects Limited (NSE: POWERMECH) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Nani Aravind — Chief Financial Officer
S.K. Kodandaramaiah — Director, Business Development
Analysts:
Unidentified Participant
Dipak Saha — Analyst
Pritesh Chheda — Analyst
Jainam Jain — Analyst
Dipak Saha — Analyst
Vinay Nadkarni — Analyst
Ankur Kumar — Analyst
Modit Bandari — Analyst
Krupa Desai — Analyst
Maitri Sha — Analyst
Dinesh Kulkarni — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Power MEC Projects Limited hosted by Nirmal Bank 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. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company on the date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Deep from Nirmal Bank Institutional Equities. Thank you. And over to you, sir.
Dipak Saha — Analyst
Hi everyone. Good morning. On behalf of Nirmal Bank Institutional Equities I would like to welcome you all to the 4Q FY25 earnings call of Powermate Projects Limited. The management today is represented by Mr. N. Nani Aravind, CFO of the company and Mr. S.K. ramaya, Director of Business Development.
I will now hand over to the management for their opening remarks after which we’ll open up the floor for Q minutes. Thank you and hand over.
Nani Aravind — Chief Financial Officer
Thank you. Pooja and Deepak. Good morning everyone. I’m Nani Arden, CFO of the company. I have with me Mr. S.K. ramaya, Director of Business Development. Unfortunately, Mr. Rohit, President B Business Development is unable to join us today due to and unexpected travel and meeting commitments. I take this opportunity to welcome you all to our quarter four FY25 earnings call. The performance for the fourth quarter and full financial year FY25 continued in line with our set targets for quarter four FY25. We reported a total income of 1870 crore marking a 43% increase over 1312 crore in quarter four FY24.
EBITDA stood at two hundred and thirty three crore up by 46% from one hundred and sixty crore last year. And PAT came in at one hundred and seventeen crore reaching 39% growth compared to 84 crore in Q4 FY24. The EBITDA margin improved slightly from 12.2% to 12.5% going to better cost control while PAT margin marginally decreases from 6.4% to 6.3% due to increased finance costs and higher minority interest costs. For revenue mix for quarter four. In terms of revenue mix for quarter four FY25. The mechanical business contributed 290 crore, a 65% increase over 176 crore in Q4FY24.
The civil segment including railway water distribution projects contributed 980 crore compared to 725 crore in the same period last year reflecting a 36% increase. O&M revenues rose to 533 crore up by 51% from 354 crore. The electrical business saw a significant increase reaching 25 crore versus 6 crore during last year marking a 315% jump. The mining business contributed 25 crore lower than 41 crore in Q4FY24 showing a 40% decrease. Other incomes stood at 17 crore compared to 10 crore in the previous year. The revenue split for the quarter was 97% domestic and 3% international while the contribution from power sector remained at 53% for the quarter and with non power sector accounting for the remaining 47%.
For the full year of FY25 we reported a total income of 5279 crore, a 25% increase over 4234 crore in FY24. EBITDA for the year stood at 649 crore, growing 24% from 524 crore and PAT was 327 crore, an increase of 32% to almost 240 crore in the previous year. On a full year basis, EBITDA margin declined slightly from 12.4% to 12.3% due to increased overhead cost whereas PAT margins improved from 5.9% to 6.2% driven by lower tax expenses and higher other income. So the revenue mix for the 12 months period. Mechanical business contributed 898 crore showing a 30% growth over 692 crore in FY24.
The civil segment including railway and waterworks contributed 2004 to 39 crore up by 6% from 2,308 crore. O&M revenues rose significantly to 71746 crore from 1109 crore recording 36% growth. Electrical business revenue stood at 67 crore up by 26% from 53 crore. Mining revenues for 84 crore, a sharp increase from 44 crore in FY24. Other income rose to 45 crore from 25 crore. So the overall business split for FY25 was 95% domestic, 5% international with 59% of revenue coming from the power sector and 41% from the non power sector. The financial parameters of the company is concerned with better deployment of capital and improved operating margins we have also witnessed an enhancement in our return on equity which increased from 14.22% in FY24 to 16.26 in FY25.
However, return on capital employed saw a marginal decline from 24.16% to 23.28 primarily due to delays in receivable sterilization in the water division which necessitated higher utilization of working capital borrowings. We expect this to be a temporary impact and with the anticipated normalization, collection and execution, return on capital employed is likely to improve significantly in the coming quarters. Other key developments during the period include the operating cash flow which demand neutral nil primarily due to the pending realization of receivables in the water division. We are actively engaging with the clients to expedite the certification and clearance processes and are competent of realizing the outstanding dues in the coming months which will help to restore the positive operating cash flow.
Net current SSDs excluding cash and cash equivalents have increased from 121 days in FY24 to 128 days in FY25 due to delays in certification of the waterworks and delays in realization of receivables resulted in the increase in the current assets of the company and on stabilization of the MDO business. From 2027 onwards we can expect a significant improvement in the networking capital base. The gross debt and net debt remained controlled despite delays in certain certification of water bills and delays in realization of receivables. As of 31st March 2025 the gross debt is 641 crore and the net debt stands at 48 crore.
The degree ratio as on 31st March 25th stands at 0.33 times. During regarding with reference to the order book is Concerned, during the FY25 the company has secured orders worth of 6437 crore. The order backlog as of 31st March stands at around 58,258 crore. After excluding FGD address of rupees 4264, the backlog is around 53,994. Further, excluding the two MDO projects, the executable order book is 14,387 crore. We continue to actively pursue tenders and are targeting to secure 10,000 crore of new orders by March 26. During FY26 we anticipate a significant increase in ordering flow particularly from the power sector across segments such as O and M Mechanical, Civil Construction and BOP EPC.
As ended, we have already secured orders worth of 972 crore during the quarter one. Our strategic focus will remain in high potential areas including industrial plant operations and maintenance, railway and water infrastructure as well as MBO projects. All our existing projects are progressing well and are on track. As per the planned schedule for FY26, we have set a revenue target of 6,500 crore which is subject to the pace of traction in MBO business. EBITDA margins expected to remain consistent with FY25 levels. We are confident of achieving 25% year on year revenue growth. Margins are expected to remain stable with a potential upside depending on the contribution from the mining segment.
The order book outlook for the current financial also appears comfortable supporting our growth trajectory. Power MEC is well positioned to demonstrate execution and conversion in the range of 40% of its opening order book annually. Additionally, the MDO business is ramping up steadily and we expect both O and M and MDO segments to drive significant growth in the coming years. So with regards to our MDO business is concerned, our MDO business is focusing steadily at the KBP mining quarter percent project. We achieved a key milestone with the release of 564.16 hectares of Notified Forest land by the State forest department in July 24.
Tree cutting for the first year was completed by March 25. Equipment mobilization has been completed and mining operations begin on 15th April 25th. As of now, approximately 1.7 lakh cubic meter of overburden removal has been completed and coal production is expected to commence from Q2 FY26 at the Kalanash with AFSA project. OV removal and coal dispatch operations have been ongoing since January 2020 with approximately 6.4 lakh tons of coal dispatched to sale as on 30 April 25. The project received environmental clearance for a 3.5 million tons washery in October 2024. Design consultants have been appointed for railway slidings and washree development.
Engineering and vendor finalization activists are in progress. Site mobilization is underway. The phase 1 R&D colony construction on 4.5 acre is completed and handover to project affected families is in Progress. Approvals for Phase 2 colony construction over 41.11 acres are currently under review. So while sales current coal offtake is below the plan due to limited external washtree capacity available outside, we are actively working to resolve these constraints and ramp up the mining production.
So with this I now request Mr. Ramayagaru to update us on the key business development initiatives and future outlook of the company.
S.K. Kodandaramaiah — Director, Business Development
Thanks Arvind for your introduction. Bringing out all the Financial numbers and thank you our investor community. I think Arvind has given us key features of the company’s operations and the finance and then the offering order backlog and then the revenue and all. Some of the key aspects I would like to dwell upon is that in the quarter four particularly there were some key important orders. We have secured adani power about 424 crores for the civil and structural portion of 2 into 800 megawatt unit. Then the Kodarma another 28 megawatt project coming up by DVC. BHL is the APC contractor 579 course for the civil structural work.
Then there was a major breakthrough in NHI for the Deogar bypass 49 km of ham project 972 crores. Then there was a scope expansion of the government medical college. Scope which we are doing in that is about 231 crores. Then other major jobs which we have secured in this current year are Kaigor Nuclear Power Corporation first time we have taken the 2 to 700 megawatts 5 and 6 unit stage 563 crore. Then South Central Railways 107 crores. Then Nigeria Dangote first time we have taken a major windm job. A two year long term windm contract for the plant which commissioned captive for 109 crores.
Then coastal energy 2 to 4 in windm 1021 megawatt 114 crores. Then GMD safe motor wind M2 into 125227 crores. Then Vedanta 123 into 660 megawatt a 5 year wind up. This is one of the major contracts we have secured in O and M951 crores. But this is a now the as far as the business output is concerned there have been case breakthroughs in the major orders which were secured in the O and M and then particularly Vedanta Adani. The new investments are making for the huge power sector investments. Nuclear Power Corporation which is coming with new projects.
Then the significant improvement in the export orders particularly in the OM side and the maintenance side of the jobs which were taken in Middle east and Nigeria that is 324 crores. There is a improvement over the last year. Whatever we have done then the BHL also is coming out lot of EPC contracts and there are obviously the opportunities are coming in BHL power sector. Then roads and then steel segment will come up slowly. Then the major features are the O and M. This seems to be upstream in our operations both in ordering and also in revenue and all.
In fact, the order backlog on the O and M has gone up significantly from 2197 crores to 2749 crores compared to last year and this year end. Then of course there is an adjustment on the FGD jobs which are slow moving. It’s not taking shape because of various factors involved in that. That is about 4263 crores from the Adani side. And then the civil side there is a significant improvement in the order backlog from 7814 crores to 8,4 72 crores. On that O and M. I have mentioned electrical. Of course their business is slowly coming down for the obvious reasons we have taken a business call.
Their businesses continue to be driven by the domestic sector with 98% of the work with about 40 54% of the. Sorry, yeah, 60. The domestic is almost 98%. International is about 2%. Then power sector is about 60 and 40%. Non power sector is 40%. Then with MDO the backlog has gone up from 57,000. Sorry, 57,053 crores after adjusting 53,994 crores because of the FJD order adjustment. Then of course there are certain things market side we have to understand is that some little bit of order backlog initial last year was due to the a lot of elections process which was there for the general elections and the state elections.
That was where many of the tenders were postponed. And later on it was picked up in the second, third and fourth quarter. Of course that election period there was a obvious source to market. That is one of the things. But as far as the general business environment is concerned is that power sector is a big shape with about ongoing contracts of 2 lakh crores and new investments are expected about 4 and a half lakh crores because of the ramping up the capacity from 220megawatts gigawatts to almost 300 gigawatts. Then railways as usual and then roads.
The investment continue to grow with the same pace. And there is an improved opportunities in case of Middle east and then in the West Africa. That is where we are trying to give attention for the new investment coming in the power sector there in a big way. This is as far as the general thing. And then we are at present looking at a total opportunity for the current year about 30,000 crores. And that should be a combination of the power sector because it is in the case of power sector I would like to be bring up Certain key features if you look at it overall for the last one now two years total ordering which has written is about 32,420 megawatt worth a value of 1 96,705 crores.
This is a significant order input into the system. EPC orders and then BTG supply orders and then certain other mysterious orders which has been placed by various customers and then major customers which have placed orders on BHL and also LNT are Adani about 10,920 megawatts and then NTP is about 11,580 megawatts and then DVC 3200 megawatts, NLC 2400 megawatts and their orders also have come to BHL and LNT from Mahajanpur megawatt, Singrini 800 megawatt, GSECL Gujarat State Electric Corporation Limited 800 megawatts and then Jatiskar State Company Power Generation Company 1320 megawatts. Therefore BHL is fresh with order.
That is one of the positive things. Obviously they have got total ordering of the BHL has got a total total ordering offer something like 29,420 for one 69,182 crores. LNT has secured two major orders at Nabi Nagarwara 4000 megawatts about 27,523 crores. Total Adani orders on BHL is about 31,270 crores. Mainly BTG supplies and also BTG supplies for about 10,920 megawatts. And then total NTPC orders on BH3, 7580 megawatts for 58,090 crores. Therefore total NTPC and BHL orders on BHL NTP center orders and BHL is 89,360 crores and BHL for the last year has secured 92,534 crores.
And with a backlog of 1.95 lakh crores for LNT and BHL are the major power sector players. Therefore this will if you look at the present and future the annual capacity should go into 8,000 to 10,000 megawatts offering significant opportunities. Then O and M opportunities will increase about 1200 to 1500 crores per year only in the new capacity which can come up and CEA Central Aircraft Authority has planned a commissioning program of 1676 megawatt in the current year. Of course last year there was a setback in the commission. All those projects are getting going to be commissioned in this year and then plants under construction is more than nearly 33,000 megawatts.
Therefore apart from that, because of the impetus on the capacitance and thermal power to manage the grid stability there are ongoing plans and development plans for various power developers and all up to 43 to 44,000 megawatts. That can entail a future investment of nearly 4 lakh crores. Therefore power sector is really booming. It will go up another three, four years in terms of ordering and then in terms of capacity it goes to 2013-32. And then the as part of the national infrastructure pipeline we have seen the continued focus on the roads, railways infrastructure, metro jobs, water systems etc.
That is how we look for that. The opportunities will continue to be more and more available for the company and then over in terms of new signing of aspect in our operations and power. That is what I would like to say. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritesh Cheddar from Lucky Investments. Please go ahead.
Pritesh Chheda
Yes sir. A couple of questions on the FY25 number first. So if you see the mix has improved in favor of O and M but we know and civil hasn’t grown. Civil has grown less than the company growth. So I believe there should be some level of margin expansion but we don’t see it coming. If you could highlight the reason. Second is on water projects and the receivable expansion. This is called out by a lot of companies. So if you could tell us exactly what is the problem in the water sector and what will be the new course of correction there.
So. And then I have another two questions which I’ll take up.
Nani Aravind
Yeah, thank you sir. With reference to the EBITDA margin, even though revenue O and M and other operations increased also there is no positive movement in the EBITDA margin. Why this is likely the less cost. Mainly during the year we received major orders from the power side. So we started a new plant, new project establishment cost will be more at the initial stage so which will be recovered in the subsequent period. And moreover this water division we anticipated more. We planned 678 crore of turnover whereas we achieved only 70% of the targeted number. Mainly because of the JAL given mission where we are executing projects in water in UP government.
The project timelines for J1 mission has been expired and since November there is no satisfaction on these water projects are concerned. And this is basically 50% fund is allocated from the central government and 50% from the state government due to Kumbh Mela project planned at UP level. So the state government at both central and state they have not allocated any funds during the Q4. So hoping that this quarter we are getting the funds. So the realization pending from the Soul of around 210 quarts of water depending on division. This WP uncertified portion of around 215 crore total around 415 crore value of 425 crore value is pending from the certification as well as the receivable from the UP government regarding J is concerned.
So we are hoping that this quarter will expecting some allocation of funds from the central government and the state government will recover that money in this quarter.
Pritesh Chheda
Okay, so to the first question then why are you not calling out margin expansion in FY26?
Nani Aravind
FY26 also we are expecting new orders from the power sector. So the more or less we are maintaining at the same level of EBITDA because the MBO business operations have just started and now once we reach the peak rated capacity only there is a jump in the improvement in the margins are concerned windham side? Yes, there’s a possibility of increasing the margins but initial establishment cost will be there for the new projects to start in the current year also. So we in my remarks I mentioned that margins are expected to remain stable but is a potential upside depending on the contribution mix from the mining segment.
Pritesh Chheda
Sir, in the 29,000 megawatt order to BHL and 4,000 to NLT so let’s say 30 to 33,000 megawatt. In this 33,000 megawatt how much of civil and balance of plant will be retained by BHL mainty and how much has been ordered now so that we come to know what is left to be offered.
S.K. Kodandaramaiah
There are two aspects of BHL outsourcing it. Now they have got some plans because they’ve got a huge auto backlog and they see that limitation some capacity capacities, what is available which they are using it anyway. Ongoing projects are also there. The old and finishing projects, perhaps three or four projects. They are planning to do the BOP subcontracting the key areas in the balance of plant that is Coal handling, ashandling, similar works, balance of civil works and some of the water packages and all that is Going to be there on a sub EPC basically that is expected to give a significant opportunity of about 8 to 10,000 crores in the market.
But we are also looking at that opportunity. The second aspect, as you rightly asked is the normal subcontracting outsourcing they do for the entire execution. That is you know the civil, structural, mechanical, all those things that the available Based on the available market order what BHL has got. We anticipate an opportunity of over 30,210 crores in UTC orders and civil orders and then structural work orders. And LNT also has to subcontract green plant execution works and also balance of plant and then some of the balance of plant works in civil, structural and mechanical works. Therefore, from the power sector itself.
As far as our type of operations is concerned there are two opportunities. One is the traditional business what we are doing in fuel structural mechanical works that is around comes to 30,000 plus crores including LNT and the new BOP concept. Sub BOP concept which. Which BHL is going to implement it in couple of projects that is expected to feature opportunity about 10,000 crores. That is what we are aiming it. And that is one of the reasons perhaps you know we will be bullish for the more ordering in the power sector this year. And that will also lead to more opportunities in the.
Pritesh Chheda
How much is ordered out or this will which is yet to be ordered out.
S.K. Kodandaramaiah
I think it is a progressive phenomenon. What I can say is that. At. Least about 60% of it they have to order it in these 60 to 30%.
Pritesh Chheda
My last question is what is the scope of working Kaiser 2 into 700 megawatt nuclear?
S.K. Kodandaramaiah
Yeah, Kaiga it is the twin magot this one. The main work is the plant civil and structural work for the turbine island.
Pritesh Chheda
Okay, and who’s the. Who’s given you this order?
S.K. Kodandaramaiah
NPCL Nuclear Power Corporation, sir. Nuclear Power Corporation is given to bhl. BHL is a. So he.
Pritesh Chheda
They gave the com to be a cher. BHL gave you out outsource.
S.K. Kodandaramaiah
Correct.
Pritesh Chheda
And this is your first time order. Right.
S.K. Kodandaramaiah
We are taking nuclear because the type of work what is in the non reactor side of the work that is on the turbine side Turbine island is similar to a power sector. The same turbine island features are there. Therefore we are quite familiar in doing the structural civil and then the turbine foundations and all those things.
Pritesh Chheda
Thank you very much.
Nani Aravind
Thank you.
operator
Thank. Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Good morning everyone. Congratulations. So firstly I needed a Couple of data points. Starting with unbuilt revenue mobilization advance and advances to subcontractors again as of March 25th.
Nani Aravind
Okay. You want the number sir?
Jainam Jain
Yes. Hello sir, are you there?
S.K. Kodandaramaiah
Hello sir. Working progress is 890 crore as on March 25th. Mobilization given to subcontractors is 20 crore and advanced subcontractors 200 crore.
Jainam Jain
Advanced subcontractor. Sorry.
Nani Aravind
200 crore.
Jainam Jain
200 crore. And on build revenue it’s 895 crores right?
S.K. Kodandaramaiah
890.
Nani Aravind
890.
Jainam Jain
890 crores.
Nani Aravind
And mobilization, advance, mobilation given to subcontractor from the clients.
Jainam Jain
You are asking from the client.
Nani Aravind
240 crore.
Jainam Jain
And so in terms of capex guidance for FY26 like last quarter we guided for 550 crores. Terms of capexing for incoming two years. So how much are we looking to spend in FY26?
Nani Aravind
FY26 maybe around 500 crore. We are planning service and the regular CAPEX is together.
Jainam Jain
Okay. So we will be using that for the purposes. You have added for 500 of that addition in the last year for the next year.
Nani Aravind
No, no. The total debt will not through entirely through debt we have raised a Q of 240 cr ear marked for the equity for the washering.
Jainam Jain
Yeah.
Nani Aravind
Initially we’ll use this money for the capex and the rate will be added only limited and most likely it will be added next year. Will be added in this year.
Jainam Jain
Okay and sir initially we had an order inflow guidance of 12,000 so SR25 and right now as far as I understand we have an ordering flow of 6400. So can you highlight something on that part like why have we moved out on that process with betting.
Nani Aravind
So last year, this year we are targeting around 10,400. We have closing value of 14,387. So the another 10,000 crore we are proposing for. I mean planning for the during the year around 25% of the revenue growth we are projecting for the current year. So which is roughly around 42% of existing order. The present current orders also you can Export up to Q1 Q2 whatever the orders you received. You can also plan for Q3 Q4 execution.
Jainam Jain
Okay sir. And is there any update on the mining business side on the kp kbm, KBP Mining.
Nani Aravind
KB Mining. The mining machinery has already been.
S.K. Kodandaramaiah
Has been completed sir.
Nani Aravind
And OB removal also started from 15th of April. So the likely to generate the coal production from Q2 onwards.
Jainam Jain
Okay, so that answers my question. Thank you so much and all the best.
operator
Thank you. Participants who wish to ask questions may press Star and one. I repeat to ask a question please press Star and one. The next question is from the line of Vinay from Hartway Investments. Please go ahead.
Vinay Nadkarni
Just wanted to know the waterworks problem that you are saying. Receivables is that localized to only UP government or is it a much larger problem.
Nani Aravind
Which is the central document. Is. Mainly focused on the central government fund basis only. They have given these works to the up. So up also contributing 50% of the fund. So due to Kumbh Mela works it they diverted all activities so they could not able to allocate any funds from the state side and central government. Said JB Initially they have given timelines for five years to complete these projects and which expired in November 24 during last budget. Again they extended for till 29 these timelines. So the allocation of fund should supposed to happen in April. It will make due to this present ongoing situations in up.
I mean FOX and India issues and other things. So there is delay in in terms of allocation of this J mission funds. So we are hoping that now the issues are settled now. So probably they will allocate funds to state and central and state both will allocate the funds now. They’re hoping that this funds will be collected during this next month.
Vinay Nadkarni
Yeah. My question was is this only with UP or do you have waterworks projects outstanding receivables from other places also other.
Nani Aravind
Funded projects everywhere. The 50% fund has to be allocated from the central sir.
Vinay Nadkarni
So it is the central fund that is pending, not the state fund.
Nani Aravind
It also because UP because of Kumbha they diverted funds. So now they’re allocating funds now. So except the UP the rest of the people there is no problem. There’s a 50% is happening from the state side.
Vinay Nadkarni
So if you can just tell us from the unbilled revenue of 890crores how much is pending due to waterworks? You said 215 is for up for others. How many more?
Nani Aravind
No, we have. We are executing waterworks only in up.
Vinay Nadkarni
215 out of 819 is for up for the waterworks. Okay. Secondly, your order book for the year last year was how much? 17,000 something, right?
Nani Aravind
Yes, because the there is ABGD non moving. As I said that which we removed it from the order flow. And after removing that it is 14,464 adjusted in the current order. And then after adjusting 14,387 is the actual running ladder.
Vinay Nadkarni
So that has reduced from 17,446 of last year or what was the figure last year? Similar figure.
S.K. Kodandaramaiah
Yeah. 1417,362 to 14,387.
Vinay Nadkarni
Okay. And. And what percentage of your total revenue comes from waterworks?
Nani Aravind
Approximately around 10%. Last year it was 20%, sir. This year we achieved around 10.9%.
S.K. Kodandaramaiah
The total order value is 2723 crores. And then there is another additional order of 699 crores on the O side. Now O and M has to pick up once the more connections are given. And the 273 crores that is the based on this program. And we have completed rolled 1864 crores for the last 2, 3 years.
Nani Aravind
So this year we achieved around 9% of the total.
S.K. Kodandaramaiah
Yeah.
Vinay Nadkarni
Okay. Thanks a lot sir. Thank you very much.
operator
Thank you. We’ll take our next question from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Hello sir. Congrats for a good set of numbers. Sir, I wanted to harp upon upon the guidance for the next year. So earlier our guidance give us 7,000 crore. Now you are saying 6,500. Am I right sir? And what is the basically is it like the Jaldi one which is causing us to reduce this exped?
Nani Aravind
No sir. Actually we actually planned last year around 10,000 crore order inflow. There is a inflow was reduced because of the last year due to general elections and other issues. So there could not able to get more orders. And even power side also there is no much orders. Except last Q3 and Q4 we got the major orders that impacted the order inflow. And now the existing previous track is that we are executing 40% to 45% between on the opening order value. So based on that we revised the value to 6500 level. And moreover mining also the offtake arrangement is not happening at Tasra because of the outside varsity capacities are not available.
So we are conservatively considered this growth of 25%. Because this year also we achieved only 25%. So in the same range of growth we have projected.
Ankur Kumar
What is the order backlog right now? Sir?
Nani Aravind
14,000. Moving 14,387 sir. Without MDO.
Ankur Kumar
Without MD. Okay.
S.K. Kodandaramaiah
Yeah.
Nani Aravind
Plus 700972 crore value of orders we received during Q1. So around 15,000. 15,200 is right now as of today.
Ankur Kumar
About this total order book that we have 53,994 crore. Then when will this be executing the rest part?
Nani Aravind
Rest is the main remaining is the MDO order. So this is 25 to 28 years of period is there for the execution of the tender projects to 25. It is of.
S.K. Kodandaramaiah
Actually there are two aspects of this backlog auto. When I say the traditional business what we are doing that backlog is about 14,387 crores. That cycle time will be there pending water cycle time will be somewhere between two to three years generally. That’s why that 40% ratio comes for the revenue data. Whereas as Arvind has rightly said on the MDO orders for two MD waters that will have a long duration period As a. As a matter of mining and then selling the mine products for the coal, the poking coal to the customers that has got a longer period.
Ankur Kumar
And this year we expect 10,000 cr order inflow.
S.K. Kodandaramaiah
Yes. Yeah, yeah. That is based on the couple of developments. One is the huge order flows have gone into BHL and LNC and further orders are expected. Yeah. On the power sector because government is keen to ramp up the thermal capacity to avoid the grid problems. Second is the importance perhaps expected this uptake which will come up in the infrastructure, Railways, roads. And then. And then some of the private sector investments also is expected to come. For example Adani is making huge investments in power sector also. And then JSW is making investment. JSPL is coming with the investment and then infrastructure.
We expect the continued progress will be there. And that is why because we had achieved if you look at it in 202324 almost 8850 crores. Therefore the company has got that where we there to manage those type of order. That is why we pen the order at 10,000 crores. Last year was an exception because of so many other factors.
Ankur Kumar
And sir, in terms of next year that is XY27 what kind of execution do we expect there?
Nani Aravind
We are targeting 20 to 25% of growth server next year also roughly around 7800 to 8000 crores. Thank you.
Ankur Kumar
And all the rest.
operator
Thank you. The next question is from the line of Modit Bandari from IIFL Capital. Please go ahead.
Modit Bandari
Hi sir. In terms of our MDO project. So firstly whether our Washri which we earlier expected to complete in September 26th so whether that is on track. And secondly our for FY26 what amount of revenue for both MBO projects would we be able to get? So I think earlier we said around 300 to 400 crore. So whether we’ll be able to achieve that?
Nani Aravind
Yes sir, we are on track and we are targeting to complete the washree by September 26. So far we have placed an order for 120 crore of Missionary City order place in order and the balance also we are following so the Washi major equipment designing. So we already completed and L is already issued to the vendors. We are targeting to invest almost 500cr of investment during the current year itself. So that we can conclude we can close the we can complete the vast by September 26th.
Modit Bandari
Okay, got it sir. And secondly in terms of our debt. So you said we will not increase any net debt for from FY26 25 levels to FY26 so we can expect that net debt to remain stable, is that right?
S.K. Kodandaramaiah
Yes sir.
Nani Aravind
We are on overall basis we are focusing on the realization of receivables from the water division and we want to reduce my working capitalization. This year already I will utilize more debt than the last year and we will take the term loan for this was maybe utilization will for the time being will use it from our healthy facilities and working capital. And next year probably by end of this year or maybe next year we’ll use the term loan facility for the balance capex performance.
Modit Bandari
Got it sir. And last one from my side. So we said about subcontracting sub BOP work which we expected to be opportunity of around 10,000 crore. So I think earlier you were talking about core BOP project which had around 50% of the total thermal power capex opportunity. So roughly would you be able to give rank that what this 10,000 cutout is what percentage of total thermal power capex?
S.K. Kodandaramaiah
No see I told you as the traditional part of the business both LNT and DXL comes to consideration and then there is going to be some sub BOP things which I am expecting at the AS and tonight the reading can be couple of two, three projects can be there because they have called the tender for the synchrony also Lukai they have already awarded for the 800 megawatt BOP and now the Korba west has come which BHL has taken at a value of 11,800 crores recently for 1320 megawatt and that is where we are expecting another 10,000 crores on the sub view of the opportunities and it can go up also based on what the BHL decision takes place.
But whatever is the balance which has been already taken up and then the Adani portion of the orders there is no construction which is done under the BHL will be done by Adani directly and we are working on that. We are about 4800 megawatts of various ordering is in the process and we Already taken orders from Adonis for the new order for the place from DHL as a construction part of it. Therefore. Lnt they have to start the subcontracting work for their 27523 course of ordering now that should be expected in couple of months. It should start.
Therefore bhl. It depends. One is on the bop. I told you. And then on the traditional business of about 30,210 crores. That is what as on today we are keeping a track.
Modit Bandari
Okay. Got it sir. Thank you.
operator
Thank you. The next question is from the line of Krupa Desai from Electrum Capital. Please go ahead. Hello ma’ am. We request you to use handsets.
Krupa Desai
My questions are already answered. Yeah, thank you.
operator
Thank you. Ma’ am. The next question is from the line of Maitrisha from Sapphire Capital. Please go ahead.
Maitri Sha
Yeah. Hello. Am I audible?
Nani Aravind
Yes, ma’ am.
Maitri Sha
Yeah. Congratulations on the great result. I just have one question. So for the MDO project, what kind of projections are we giving for the revenue for next year? So previously we said around 300 to 400 crores of revenue. So FY26, are we still sticking to that guidance?
Nani Aravind
This year we are planning around 208 crore from the Tasra mine and 64 crore from KBP. Both together. 272 crore we are projecting.
Maitri Sha
And this will be over the 6,500 guidance that you’ve given?
S.K. Kodandaramaiah
Yes. Yes.
Maitri Sha
Okay. Okay. Thank you so much.
Nani Aravind
It’s with the part of 6500 only, ma’ am.
Maitri Sha
It is a part of 6700. Anything over this will be added to the.
S.K. Kodandaramaiah
Yeah, yeah. Yes.
Maitri Sha
Thank you.
operator
Thank you. The next follow up question is from the line of Vinay Nandakarni from Hardway Investments. Please go ahead.
Vinay Nadkarni
Just one question on this. You’re saying there’s some ongoing order in Bangladesh. Any what is the size of this order and is there any issue on that because of the disruptions there? And how much have we executed already?
S.K. Kodandaramaiah
No. Bangladesh more or less. Most of the jobs we have closed. There is not much to be done. And as on today we are. We are taking a other look. Looking at the situation. It’s not so much this one prospect to going to Bangladesh.
Vinay Nadkarni
So no receivables outstanding there.
Nani Aravind
Around 5, 55 USD is receivable, is there? So the final bills are under process. So we are expecting to receive these bills also by this next couple of weeks.
Vinay Nadkarni
Okay. And these are unsecured receivables, right? No LC backing or anything?
Nani Aravind
Nothing sir. It’s a regular Construction.
Vinay Nadkarni
Thanks. And just one observation. If you can just look at your India map On your slide 11, I think you should correct it.
Nani Aravind
Okay.
Vinay Nadkarni
Okay.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question. The next follow up question is from the line of J. Nam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity again. So from the page 27 of CTP we have excluded SGP order value of 43 billion. Can you please help me with understanding or like why have you done that?
Nani Aravind
Implementation timelines for this FGD systems were revised by the government of India time to time and the regulatory approvals were also delayed. So on the ministry power issued recently also some directives that effectively they extended the deadlines for its implementation to the year 2029. So because there is no non movement of these agreed address and clients are also taking delay in terms of of giving directions to us for execution of these projects. So we have taken a after discussion with the negotiations with the company so mutually we decided to remove the order book to the extent of non moving orders are concerned.
So around 4,000 to 64 crore order value of this Kawai, Tiroda and Mundra projects we excluded from the order value, sir.
Jainam Jain
Okay, project. Thank you so much.
S.K. Kodandaramaiah
Yeah, basically Supreme Court has taken attention because of so many factors were there because of the complexity of issues in implementing UFC Auto and only the retrofitting space issues. Then Power Purchase Agreement amendments all these things were there Then technology issues, outsourced and supply chain. Therefore they extended is not the first time any extension of take up to November 2029. And obviously the developers who are having uncertainty on the Power Purchase Agreement amendment because discoms have to pay higher tariffs on this have to take conscious decision of.
Jainam Jain
Okay, so the order has not been cancelled but it’s just. It has just been delayed to for the next few years up the next year.
S.K. Kodandaramaiah
Yeah, yeah it is. It can be reweaved but as on today, it’s not in our book. And we are all trying to settle whatever work we have done. One project we are doing at Udupi that work is going on 963 course we’ve done about 35, 40% of the work that will be done. But rest of the projects as Arvin said, that is not there.
Jainam Jain
Okay, thank you so much.
operator
Thank you. The next question is from the line of Dinesh Kulkarni from Finsight. Please go ahead.
Dinesh Kulkarni
Hello sir. I’m audible.
Nani Aravind
Yes sir.
Dinesh Kulkarni
So thank you for taking my Question. So my question is as you mentioned we are facing some issues with the water division. Do you think this is something like a. I mean it’s going to impact the industry at such in terms of receivables or there are in terms of like order not enough orders that you were expecting earlier and this is going to persist for next few years or this is like a temporary phenomenon. So what’s your view on that?
Nani Aravind
Because of the timelines expiry. So the last budget has extended the timelines and only they have to allocate the funds to the these projects for by the central government due to their ongoing issues with PATH and other things. So there is a delay in terms of allocation of funds till the time the fund allocation happens. The the department is the client is not certifying these bills unless without the funds availability. So we are executing the projects and almost around 350 crore 425 crore worth of works already executed and pending for different stages of certification. Once the allocation of fund happens from both central and state government.
They’ll release the funds the temporary phenomena.
Dinesh Kulkarni
Okay, that sounds great. So. But you do. I would like to know more about in terms of the next three, four years. What’s your view like will the allocation of funds will be there to execute this project. So do you expect a decline in the funds allocation itself in terms of like what’s your. You know in terms of division your in terms of industry. What’s your take on that?
Nani Aravind
So this is the UP project specific issue. And these projects almost we completed more than out of 3000 crore. We completed 1800164 crore. And within a year we can complete this works. There is no issue. Once they allocate the funds we can speed up the works and we can complete this in a year time.
S.K. Kodandaramaiah
But this one status is that you know they have reached almost 80% of the outreach of the functional house type connections required for about 19.2 crores of households. Therefore it is taken a good shape that was up was a specific issue balance 15 to 20%. I think this government is determined to complete it maybe another one of two years maximum.
Dinesh Kulkarni
Okay. But so we expect more work to come in this division or like this will be a stable. There is no growth you expect in the specific division. For our company itself.
S.K. Kodandaramaiah
Today there can be some opportunities because southern states there is some backlog of house connectivity for the drinking water that we are looking at. You know in some of the southern states and also Maharashtra, Andhra Pradesh, Madhya Pradesh and then Tamil Nadu that will see to it as and when it comes, you know we will take it up based on our experience.
Dinesh Kulkarni
Okay, sounds great sir. My next question is in terms of the capex which you just mentioned that we’ll be having some around 500 capex crore for this year. So. But how do you expect for the next 34 years? Will it be this level sort of expected to come down once we have the MBO in place?
Nani Aravind
No, the capex will be around 80 to 100 crores year on year. So for regular business and for the capex only specific activity where we are planning to raise around 450 crore term loan remaining balance we have QRP funds are available. The 450 crore determination will happen in next couple of years.
Dinesh Kulkarni
Okay, sounds great. Until my last question maybe like I just want to know like what in terms of management are we expecting any succession planning in terms of you know increasing the bandwidth of the management. Because I know we’re doing a lot of work. So anything on those aspects the MD.
Nani Aravind
Son present who is right baby. He is only handling the right now the operations of the company and the major business development. So other new areas of activities which is trying to get more line of new line of activity as a strategic business. We want to induct him into the board maybe maybe in the next couple of.
S.K. Kodandaramaiah
That. You know we are also strengthening our organization overall organization of course that is on the main thing what Rohit will take the role lead role is already doing substantial work on operations business development over six operation is completely looking at it. And he’s looking at the routine aspects also and supporting to cmd. But organization growth is there because of the new opportunities that come in infrastructure and power sector. We have taken some senior level people also. And there is a substantial augmentation in our manpower resources. Both in our own regular manpower and the subcontracting manpower.
What was about 34,335 head code including power make and then the supported labor has gone up to 37,295 by April25. An increase of 8.5.6% for. And then o there is because of the incredible improved backlog and all the manpower headquarters in Om has gone from 14,069 to 18,296. Therefore the parallel the organization strengthening is also going some reorganization also is going to keep up to the customer requirements.
Dinesh Kulkarni
Okay, so that sounds great. Maybe last question from my answer. See we are seeing a lot of you know things happening on the defense front in India. Whatever we have witnessed in the last couple of weeks. So do we expect to do anything on this in this industry in the segment from the company’s perspective.
S.K. Kodandaramaiah
I think difference is a little bit of. As you know it’s the high end technology and a lot of technology input is required and that focus is not there. What we are now focusing the new energy businesses like battery energy storage and solar power. Certain projects we are looking at third battery energy storage, government Spanish to ramp up the capacity to 50,000 megawatts by 2030, 32 there you know we want to see as a developer and certain opportunities we are also looking. And solar power also we are looking at as an opportunity as an investment also.
That is so any.
Dinesh Kulkarni
Yeah, you know, part we are looking at any acquisitions and stuff like this.
Nani Aravind
No, right now there are no opportunities sir. But non power O and M side also we are looking at. As of now we are more concentrating on the power Windm Large and the PHS are also outsourcing O and M of Metros metal handling systems, process industries and airports creating a more high potential opportunities are there. We are looking at this space also to get more wind.
Dinesh Kulkarni
Okay, so you expect next phase of growth from OM itself, right?
Nani Aravind
Non power side also we are measured non power.
S.K. Kodandaramaiah
We are already working in certain market division.
Nani Aravind
We are working.
S.K. Kodandaramaiah
And then water project for example UV water project also has got a. Is a non power segment. It is also has got a 10 years windmill. It is built into the system which is we have started as in when it gets commissioned. And then one of the areas we have entered is that township construction. Also recently we have taken a 972 crores from the Telangana Generation Company for the quarter project in Telangana. Therefore that is a new initiative we have taken.
Nani Aravind
There are a lot of international infrastructure also there sir. Middle east, particularly Middle East, Africa, infra investments. They open up overseas. See our own project potential especially through local JVC and look at those opportunities also.
Dinesh Kulkarni
Okay sir, that sounds great. Thank you very much and all the rest.
operator
Thank you. Ladies and gentlemen. As there are no further questions from the participants. I now hand the conference over to the management for closing comments.
S.K. Kodandaramaiah
Yeah, thanks for the investment team and also our team here. I think the key takeaways are that you know companies looking for expanding the business in OM infrastructure. And then the new opportunities has come in the power sector both for the new installation BOP and our one of the new initiative is the palace of plants doing undertake complete job. That is because of the inhost strengths. We are having in execution validation to the company operations. And then we go more focus on the middle east, because the investments are expected to come up in Middle East.
For the energy sector, which was down now, particularly in Saudi Arabia and then UAE and other Middle east countries, a lot of opportunities are coming up. And we are also looking at some opportunities along with Tyson Group in the mineral and material processing, with a new investment coming from the Vedanta and then NMDC and then so many other developers. Therefore, overall, you know, the growth momentum should be there. Except for the last year, this one we had under 10,000 crores of auto booking. Should be reasonably targeted in the current year with about more than 30,000 course of specific opportunities we are targeting as on it.
operator
Thank you on behalf of Nirmal Bank Equities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Nani Aravind
Thank you. Thank you.