Premier Roadlines Ltd (NSE: PRLIND) Q2 2025 Earnings Call dated Nov. 18, 2024
Corporate Participants:
Akhilesh Gandhi
Virender Gupta — Chairman and Managing Director
Samin Gupta — Director and Chief Financial Officer
Analysts:
Agastya Dave — Analyst
Sanika — Analyst
Raaj Macwan — Analyst
Rahil Shah — Analyst
Kush Bafna — Analyst
Cindrella — Analyst
Saurabh Jain — Analyst
Amit Agarwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Premier Roadlines Limited, H1 FY’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]. Please note that this conference is being recorded.
I now hand the conference over to Mr. Akhilesh Gandhi from Stellar Investor Relations Advisors. Thank you, and over to you, Mr. Gandhi.
Akhilesh Gandhi
Good afternoon, everyone, and thank you for joining us today. We have with us today the management of Premier Roadlines Limited, Mr. Virender Gupta, he’s the Chairman and Managing Director. We also have with us Mr. Samin Gupta, he’s the CFO. Both of them will be representing the Premier Roadlines on the call. The management will be sharing the key operating and financial highlights for the half year ended on September 30th, 2024, and it will be followed by a question-and-answer session.
Please note, this call may contain some of the forward-looking statements, which are completely based upon the company’s beliefs, opinions and expectations as of today. These statements are not a guarantee of the company’s future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statement to reflect development that occur after a statement is made.
I now hand over the conference to Mr. Virender Gupta. Thank you, and over to you, sir.
Virender Gupta — Chairman and Managing Director
Thank you. Good afternoon, everyone. My name is Virender Gupta. I thank you all for joining our earnings call. We hope you had an opportunity to review our investor presentation, which was uploaded to the stock exchange. Today, we’ll be sharing key operating financial highlights for the six-month period ending September 30, 2024.
Before we dive into the updates, we’d like to take a moment to introduce our business model for those of you who may be looking at our company for the first time. Established in 2008, Premier Roadlines Limited is a key player that provides tailored logistics solutions in cargo handling, logistics and transportation services. We are broadly into four verticals, which are: Project Logistics; Over-Dimensional, Overweight; Contracted Integrated Logistics Services; General Logistics.
I will broadly explain what we do in these verticals. Project Logistics, handling an entire project from planning of dispatch, choosing vehicle type, meeting daily placement targets by the customers and on a bulk basis. Over-Dimensional/Overweight – Over-dimensional cargo is any cargo good that exceeds the vehicle dimensions. Hence, they require added security, safety measures during transport to ensure that the goods are in good condition and delivered safely, we offer facilities up to 250 tonnes.
Contracted Integrated Logistics services, we provide integrated logistics where the contract is of minimum two years. These services include vehicles ranging from one metric ton to 40 metric tons. General Logistics – This type of service includes out of contract, spot billing, etc. The nature of goods in this type service can be spares, accessories and others on a full truckload basis, including transportation to hilly terrains, challenging areas and materials related to exhibitions and other clients. We differentiate ourselves from our peers on the back of superior services, our legacy of 40 years due to which we have been managed to win a diversified clientele serving clients across India. We serve industries like renewable energy, power, oil, gas and many more.
Samin Gupta — Director and Chief Financial Officer
Good afternoon, everyone. This is Samin Gupta, Director and CFO of Premier Roadlines Limited. So I’ll be talking about H1 2025 performance. The first half of the year typically faces challenges in Project Logistics and Over-Dimensional cargo transport due to monsoons and limited infrastructural project approvals and election-related delays this year.
As a result, we focused more on General Logistics and less on ODC and Project Logistics during this period. A key achievement during this H1 was a first defense order and significant contracts for transportation of renewable energy products and heavy transformers. So these milestones highlights our expertise and commitment to quality service, which we offer to the Indian market. We also had a notable acquisition, which is PRL Supply Chain Solutions as a wholly-owned subsidiary. So this will enhance our service offerings in supply chain management across international markets as well now. So with the PRL Supply Chain Solutions, we now deliver end-to-end logistics, including ocean freight, air freight, Project Logistics and warehousing and distribution. So this acquisition will allow us to provide customized logistics solutions to meet the unique needs of our clients.
So going ahead, what Premier plans is that we will focus on building an asset-light model, tapping into new industries, nurturing partnerships to build a stronger brand in the market and also expanding our transport network and services. I will begin now with sharing key financial numbers and operational highlights for the half year ended — that ended on 30th September, 2024. The total income of H1 2025 stood at INR113 crores, marking a 17% year-on-year growth with 47% generated from General Logistics; 29% generated from Contracted Integrated Logistics, and just 21% from Project and 3% from Over-Dimensional Cargo this year — this half year. With that, our EBITDA stood at INR8.5 crores, up by 3% year-on-year and our margin stood at 7.5%. Our margins declined in the H1 as typically H1 delays — faces delays in Project Logistics and ODC, which has higher margins due to heavy rains, limited infrastructure project approvals. And this year, delays were also caused by election as well. So as a result, like I mentioned, we focused more on General Logistics in the first six months, which led to lower margins compared to the last half.
Our profit after tax stood at INR5.5 crores, which is up by 21% year-on-year, and our margin stood at 4.9%. We have healthy return ratios with our ROE at 18% and return on capital employed at 19% in H1 2025. The debt-to-equity at the ratio came down to 0.05x. On the operational front, we did 15,735 orders and served 594 customers with an average revenue per order at INR71,599. The decrease in average revenue per order is attributed to the change in the revenue mix discussed earlier. With the number of customers served has declined, the increase in total number indicates the repeat business from existing customers. So looking to H2, we anticipate increased demand for Project Logistics and Over-Dimensional Cargo as more projects gain approval and construction activity intensifies and the economy is poised for growth. So, we are excited about the path ahead and remain committed to executing on these opportunities.
And I thank you all, and we open the floor for question-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. [Operator Instructions]. The first question is from the line of Agastya [Phonetic] Dave from CAO Capital. Please go ahead.
Agastya Dave
Thank you very much for the opportunity. Am I audible?
Operator
Yes, you are.
Agastya Dave
Thank you. Sir, can you go a little bit more in detail about the prospects in H2? And do you — in your business, is there an order book or any sort of visibility that you get? How long is that visibility for? And how does the next year looks like as of now? So, I’m talking about in terms of revenue growth, in terms of margins, profitability and also the kind of capex that you need to do? What kind of additions will you have to your fleet?
Samin Gupta
Understood. Yeah. So talking about the H2, so in our business, typically, H1 is slightly less hectic when compared to H2. So because we cater to industrial logistics needs and they have their yearly commitments and targets to meet, so it is always more dominant in terms of the entire revenue — in terms of the mix of H1 and H2. And what we see currently as we are into H2 currently, what we see right now is that there is an increased demand of Project Logistics and Over-Dimensional Cargo. There are heavy transformer movements happening. There are oil and gas projects which have now gained momentum, and we see the movements happening on the road, and we see movements happening in the companies that we work for.
So there definitely is an increase, and we anticipate the same going forward in H2 that we see shall be doing more of Project Logistics and Over-Dimensional Cargo in this particular half of the year, which will definitely result in more profits, more margins, and would add value to the balance sheet itself. Talking about the order book, we do not work on order books. We do have a few contracts for the year that comes in Contracted Integrated Logistics. So, that roughly is around INR100 crores, INR120 crores each year, the sort of contracts we have, which is then executed in the entire year of the financial year.
And going forward, I believe that H2 would be quite good and H2 would be quite positive as the industry has just started from the slowdown, which was there due to the rains and due to the elections, and we are very much positive going ahead.
Agastya Dave
So, you were talking about around 30% growth for the entire year, full year, FY’25. So do you think in the second half, you’ll be able to make up your — like whatever temporary slowdown that we saw.
Samin Gupta
Absolutely, absolutely. So that’s the reason why we had given that split of revenue in the H1 and H2, 35% of revenue of our given guidance was in H1 and the balance was in H2. And we are at par with the guidance given at the moment. And we believe that we are on the right track, and we can definitely reach the number that we have in mind in the financial — when the financial year started.
Agastya Dave
Okay. So in terms of revenue growth and margins, whatever you were expecting, things are going as per your expectations. There is no surprise for you.
Samin Gupta
No, there’s no surprise as of now, and things are looking actually better than what we had imagined.
Agastya Dave
Excellent. Excellent. Sir, I had a second question about the capex going forward. So what kind of additions do you think you would need to make over the next — let’s say, so this time, it’s for two years? So for the next 24 months, what kind of fleet additions do you think you would require?
Samin Gupta
See, like we mentioned in the investor PPT as well, and I’d like to clarify the same here as well, and I’d like to take that opportunity. So we would be just buying fleets, which is specialized in nature, which has a premium to be paid by the customer, which has less availability through third-party suppliers and which are also costly. That’s the reason why third-party suppliers are not sort of maintaining those assets and able to give the same to us. So talking about a rough number, we do see around INR10 crores of capital expenditure happening in this particular half, which will further boost our sales and also give us an opportunity to cater to demands and needs, which we would have not done earlier.
So, just to give you an example, so we have now an order in hand where we can move when we are planning to move a 260 tonnes transformer. That’s a 500 MVA transformer that we are planning to move. And those sort of movements are just possible by owning the right amount of fleet and having the right assets. You cannot do that by outsourcing the same to a supplier. So, these sort of additions will definitely add more credential to our offerings in terms of services and will add value.
Agastya Dave
You said INR10 crores for this half. And can I assume another INR10 crores next year? Is this INR10 crores — [Speech Overlap]
Samin Gupta
No, no.
Agastya Dave
Okay, there is no.
Samin Gupta
No. So we will not be doing any more capital expenditure in the next financial year. As of now, what we anticipate, maybe as we come at the later half of this financial year, we decide. But as of now, this is the only capital expenditure we have in mind because we don’t want to be asset-heavy. In the end, we are an asset-light business model, and we want to continue to be that, but just own the assets which are less available and have a premium that the customer is willing to pay.
Agastya Dave
Excellent, sir. Sir, one question on your working capital. Do you expect any deviations from whatever the historical levels have been? I have those numbers in front of me. So do you expect any changes there? And second, can you talk a little bit about the distances that you service. So for example, this transformer that you were talking about, how far is this transportation that needs to be done? How many kilometers generally? And what’s an average number for you?
Samin Gupta
Yeah. So I’ll just take your question. So, in terms of the distance that we are serving the transformers and these heavy ODC jobs, there’s no cap to it. They can be 2,000 kilometers, 2,200 kilometers, 2,500 kilometers or even 500 kilometers. It’s not fixed as in, you know, that this will be the distance that we will be covering because the demand can be anywhere. So talking about this transformer that we are serving, it is going from Mandideep which is in Madhya Pradesh to a remote area in Rajasthan for renewable energy project. So, this is the plan for this particular transformer movement.
Agastya Dave
Understood. And sir, receivables, any changes do you expect or the current receivable patterns will continue?
Samin Gupta
On the receivable end, we are definitely working very, very hard to get that number down of debtor days. And we are focusing on quality clients, and we are focusing on clients where the number of debtor days can be reduced to, say, 100 days maximum. And the team is on the job, we are on the job, we are developing systems, we are developing mechanisms. And definitely, things do take time, but definitely, that will be an area where we are focusing on, and you might see a change in the near future.
Agastya Dave
Excellent sir. Thank you very much for answering all the questions. And all the best, sir. Very interesting business model. Thank you. All the best.
Samin Gupta
Thank you so much.
Operator
Thank you. [Operator Instructions]. Next question is from the line of Sanika [Phonetic] from SR Investments. Please go ahead.
Sanika
Hello. Hi. Sanika this side. Yeah. So, can you just share a breakdown of revenue trends over the last few years?
Samin Gupta
Last few years?
Sanika
Yeah. Revenue trends over the last few years. Breakdown of revenue trends.
Samin Gupta
So revenue mix, right? The type of services we’ve done, correct?
Sanika
Yeah, right.
Samin Gupta
Yeah. So I’ll just give you a revenue mix of this H1. I’m sure you would have seen the same in the presentation as well. So, it was dominant of General logistics at 47% and 21% was Contracted Integrated Logistics. So, like I said earlier in the call that we have INR100 crores, INR110 crores, INR120 crores of contracts, 21% of the total revenue was from there. And Over-Dimensional Cargo and Project Logistics was combined 32%. So talking about the past, we don’t have an outright number to give you. But just to give you an idea, we were always — in the past year — in the last financial year, just to 2024, we were dominant of Project Logistics and Over-Dimensional Cargo. So that would probably be 60% and General Logistics and Contracted would be 40%. But before that, we don’t have a number to give out at the moment.
Sanika
Okay. And also, we have observed significant margin growth this financial year ’24. So, can you just explain the key drivers behind this?
Samin Gupta
Ma’am, the only key driver behind is doing more Project Logistics and Over-Dimensional Cargo. That’s the highly profitable business that we have and the highly profitable service type we have, because that was not there in this H1, that’s the reason why you see not a very fancy number on the balance sheet.
Sanika
Okay. Okay. And regarding PRL Supply Chain Solutions, why is the Project Logistics repeated under both companies?
Samin Gupta
See, Project Logistics, what we are doing Premier Roadlines Limited, it is on domestic front. And what we plan on doing in PRL Supply Chain Solutions after acquiring — in Project Logistics is on international front. So, that is the reason why we’ve mentioned one of the services in Project Logistics for PRL Supply Chain Solutions.
Sanika
Okay. Thank you. Thanks a lot.
Samin Gupta
Thank you ma’am. Thank you.
Operator
Thank you very much. Next question is from the line of Raaj from Arjav Partners. Please go ahead.
Raaj Macwan
Hi, am I audible? Hello am I audible?
Samin Gupta
Yes, you’re audible. Hi.
Raaj Macwan
Hi. How much is the guidance for FY ’25?
Samin Gupta
I cannot hear you. I think your voice is echoing. You’re asking for guidance of?
Raaj Macwan
For FY ’25?
Samin Gupta
Yes. FY ’25, we’ve already given a guidance, which is on a conservative side, INR300 crores topline and similar PAT margins of the subsequent financial year. So, that is the guidance which has been given, and we are still on track of the same.
Raaj Macwan
All right. And any outlook you would like to give for FY ’26?
Samin Gupta
For FY ’26 and going forward, I would like to give you an outlook that we might — we will be growing at a CAGR of 30%, 35% year-on-year for the next four years for sure. And if PRL Supply Chain does pretty well and if the business picks up and if the customers, sort of, give us support for the international markets as well, you might see an increase on that number. But on a conservative side, year-on-year, CAGR of 30% to 35%.
Raaj Macwan
All right. All right. Yeah. And sir, can you talk more about the PRL Supply Chain company, which you acquired?
Samin Gupta
Yes, definitely.
Raaj Macwan
How much of incremental sales are we expecting from that? And how would be our EBITDA on that company?
Samin Gupta
See PRL Supply Chain Solutions is an old company, which was owned by us because Premier Roadlines Limited has a short form of PRL and our stock code is also PRL. So, we found the name to be really complementing to the sort of services we want to enter and services we want to offer. So we acquired this already existing company, which is PRL Supply Chain Solutions. Like we promised also in the last con call that we might do — we might enter into freight forwarding in international markets. So, this is one jump and one step ahead for that.
So PRL Supply Chain is right now, we were planning to offer ocean freight, air freight and project logistics and warehousing solutions to our already existing top-notch A category clients. So where we have an edge above all other freight forwarding companies already existing in the market is that we do have access to these companies, and we do have vendor codes to these companies. So being a wholly-owned subsidiary, the vendor code can be definitely passed on to PRL Supply Chain Solutions, which will definitely add value to us. And again, like Premier Roadlines Limited, our aim is to work with only top-notch clients and top-notch companies, marquee clients. It will be same in PRL Supply Chain Solutions as well.
Talking about EBITDA margins, it is very early to comment on EBITDA margins and what sort of top line we will be doing because it is — we are just into this business right now. It is not an old business, it is not an old organization which has been doing this freight forwarding services. It is something very new. We have already hired quite experienced personnels from many big companies which are existing in India and that too at good packages. So, we are very positive in terms of what PRL Supply Chain will be doing to and how it would be complementing the entire balance sheet of Premier Roadlines Limited.
Raaj Macwan
All right. Okay, thanks. All the best.
Samin Gupta
Thank you. Thank you.
Operator
Next question is from the line of Rahil Shah [Phonetic] from Crown Capital Partners. Please go ahead.
Rahil Shah
Hello. Hi, can you hear me?
Samin Gupta
Yes, I can hear you.
Rahil Shah
Yes. Hi. So, first of all, why did our margins drop, EBITDA margins in quarter two, or in H1 actually?
Samin Gupta
Sir, like I mentioned in the speech and also in the investor PPT that the margins are very low on General Logistics and Contracted Integrated Logistics. They are not as high as in Over-Dimensional Cargo and Project Logistics. And Premier Roadlines Limited is a company which specializes and has an expertise in Over-Dimensional Cargo and Project Logistics on the domestic front because these movements were not happening due to very well-known reasons of elections and heavy rains and triple monsoons.
Therefore, we had to focus on General Logistics, which is not our core, which is definitely not, you know, we enjoyed — we don’t enjoy doing that. Definitely because there is no expertise involved in that. There is no complications in that. And that is the reason why the companies are not willing to pay a premium for that. So, that may be the reason, and that is the reason why you see a dip in the margins in the H1. And this will be the trend going forward as well, and that’s about it.
Rahil Shah
The trend going forward as in every H1, you will see this happening?
Samin Gupta
Every H1, the revenue mix will be slightly lower towards the entire financial year is what I’m trying to say here.
Rahil Shah
Right, right. Okay. Okay. And you say 30% to 35% CAGR you are very confident of achieving for the next four years. Now in FY ’25, you’re saying you will see a similar PAT as FY ’24, correct, which is like in the range of 5.6% or something. Now — [Speech Overlap]
Samin Gupta
On a conservative side.
Rahil Shah
On a conservative side. But what about going ahead? How will you try and inch this up?
Samin Gupta
See, we will be focusing more on Project Logistics and Over-Dimensional Cargo. And since we have now started purchasing our own assets, which I mentioned earlier in the call that we’re doing approximately INR10 crores of capital expenditure, we expect the profitability to go up by a few basis points, and I cannot give you exact number, but we are very confident that we will be able to beat the earlier PAT margins by a good margin.
Rahil Shah
As we keep progressing each year, correct, yeah?
Samin Gupta
Yes, yes. It will be — if you see as a whole year basis, it will definitely be on an upward trend.
Rahil Shah
Okay. Okay. And yeah, I believe last call, you had mentioned that things will kind of look a bit off in H1 and like you mentioned because the revenue share is always less. But things are like looking on the upside now, correct, and going forward?
Samin Gupta
Yes, absolutely. Things are getting — things are starting to move now, and we have good orders in hand. We have good inquiries in hand. We do have a few large projects as well, which we are currently in line with. And maybe by the end of this financial year or maybe by starting of the next financial year, we might start the execution of the same. So once that comes through, definitely, it will be a big boost to the entire company, and we will be doing pretty well. And also — [Speech Overlap] Sorry?
Rahil Shah
Large orders?
Samin Gupta
I cannot give you more information on that. But definitely, once we receive any order or once we are successful in doing that, we will definitely inform the exchange about it. But just to give you a general sense, we do have a good volume of inquiries and work coming in starting this September, October.
Rahil Shah
Okay. Thank you sir. Sounds promising. All the best. Thank you.
Samin Gupta
Thank you.
Operator
Thank you. Next question is from the line of Kush Bafna from Bafna Brothers Finance and Property Agents. Please go ahead.
Kush Bafna
Thank you sir for this opportunity and congratulations on a steady state of results. I joined a little late, so I might have missed if this was already asked before, but I wanted to ask you on the receivables, which are around INR75 crores on the balance sheet, how you are working to reduce that? And also there’s loans and advance of INR6 crores, if you could throw some light on that. Thank you.
Samin Gupta
Yes, yeah. So I’ve already thrown some light, but I don’t mind sharing again. We are definitely working very hard and the entire ecosystem is aware of the fact that we need to get the debtor days down. So, we have — after being listed and after being — having so many conversations with investors, this has been something that has kind of embedded in us that we need to definitely work on debtor days itself as well as far as the entire health of our balance sheet goes.
And the entire organization is definitely on the job, and we are pushing ourselves to work for more better customers and kind of blacklist the customers which are not paying on time. At the same time, we can’t just forgo the businesses that they are offering us. So, we are very selective and choosy with the customers now. And going forward, we do expect a decrease in the debtor days. And we are taking it step-by-step, we are conscious of the fact that the debtor days are high at the moment. And we believe that 110 days and then 100 days is a good target that we have in our mind, and we will be in a good situation and in a good position to do the same.
And regarding loans and advances of INR6 crores, honestly, I don’t have that number in my mind at the moment of what exactly it is. I can definitely get back to you, and our IR team will definitely give you a mail regarding the same.
Kush Bafna
Okay, thank you. Thank you, sir. All the best.
Samin Gupta
Thank you.
Operator
Thank you. Next question is from the line of Kinjal from IIFL Securities. Please go ahead.
Cindrella
Hello?
Operator
Go ahead. You’re audible.
Cindrella
Hi. I’m not Kinjal, actually my name is Cindrella [Phonetic]. She — I guess she did not write it properly. So firstly, I would want to congratulate on the 16%, 17% topline growth. And also, however, we noticed a decline in margin on metrics like average revenue per order. So, I wanted to know more about it or maybe you can just explain me about it.
Samin Gupta
Sure, ma’am. Ma’am, we offer four service types. Project Logistics, Over-Dimensional Cargo, General Logistics and Contracted Integrated Logistics. So, Contracted Integrated Logistics and General Logistics are less in margin, and they have less ticket size. So, we had done more of that in this financial year, I mean, in the H1 of this financial year. And that is the reason why you see a decline in margins and the average revenue per order. And this is how the industry revolves and this is how the industry works overall every year that in the first half, there are not many big movements happening. There’s just small spares, small maintenance work and small trucks that are moving on the road. And in the H2 is when these big vessels and big transformers and big items start moving on the road. So, that is the reason why you see a decline in the average revenue per order as well as the margins.
Cindrella
Okay. So like in the future going forward, what are the sustainable margins that we can expect?
Samin Gupta
What are the?
Cindrella
Sustainable margins that we can expect in the — like in the future or maybe going forward?
Samin Gupta
See, to give you an idea about each service types and their margins. So Project Logistics and Over-Dimensional Cargo, they have 12%-plus margin at all times. And talking about General Logistics and Contracted Integrated Logistics, they are about 12% and below 12% at all times. So, if we do more of Project and Over-Dimensional Cargo, so you can do the calculations and come out with a number that we will be doing pretty well in terms of overall. And if we do more of General Logistics, definitely, we will be on the lower side.
Cindrella
Okay. And what are the company’s target for the future? And could you share me the road map to achieve a projected of 30% to 35% growth.
Samin Gupta
Yes, we have projected 30% to 35% CAGR growth for the next four, five years. And definitely, we have good plans in terms of expanding our services. That’s the reason why we have acquired PRL Supply Chain Solutions. We are tapping untapped — we are focusing on untapped customers, which had earlier requirements of owning a fleet. We are focusing on high-quality customers where there are high volumes and good profitabilities where they have large projects in hand.
So that is the future plan that we are having. And definitely, we are very much confident, and we are very much positive with the sort of market support we are getting after being listed and the sort of brands we already had in the past 40 years. We believe that we will be able to cash on to this goodwill and add value to the Indian logistics sector.
Cindrella
Okay, thank you. That’s really great and wish you all the best.
Samin Gupta
Thank you ma’am. Thank you.
Operator
Thank you. [Operator Instructions]. Next question is from the line of Saurabh Jain, individual investor. Please go ahead.
Saurabh Jain
Hi, Samin. Hi, Virender ji. It has been pleasure to clarify our doubts in past as well with you and get a clarity about the company. So, I had three questions. Like, with respect to finance cost portion, so finance costs like which in May when we raised — when we did the IPO [Technical Issues] — sorry, we paid short-term borrowings and we reduced it. So proportion of that in the finance cost is like 50% is the contribution, from — instead of 1.7 it has reduced to 0.8. That’s what I could see. So — and in the next half year, we should be seeing it like at a 10% to 20% of the H2 of FY ’24? First question was on that actually.
Samin Gupta
See, just to repeat what I understood, sir. And you are saying that the finance cost in H1 2025 was lower than H2 2024. And — is that the question right, sir?
Saurabh Jain
No. Okay. I’ll just rephrase the question. So in the H2 of FY ’25, we should be seeing at like 20% of the H2 of the FY ’24, right, ideally because your the borrowings are reduced to a greater extent?
Samin Gupta
Yes, yes, yes. So I think what you’re trying to say here is that there will be reduced borrowings in H2 financial year 2025, and we might see some benefit to the profitability of the company. Is that the question, sir?
Saurabh Jain
Yes, that’s the question. Because if you see INR3.4 crores is the total finance cost for FY ’24. And if you see proportionately INR1.7 crores should come to H2 of FY ’25. And the borrowing is hardly 5% to 10% of the earlier borrowings.
Samin Gupta
Correct. Correct, sir. correct.
Saurabh Jain
So I believe in a similar way, it should add to the margin of H2 FY ’25.
Samin Gupta
Yes. So the plan is that we are very cognizant of the fact that H1 of each year is very lean. Therefore, we had — we were sitting on very low borrowings, and we did not avail much limits of the bankers. And going forward in the H2, if the need arises and if the orders are in hand, we shall be not clearing and we shall be just taking the same amount of limits from the bankers and giving — increasing our borrowings at the same time.
So, we cannot actually comment on if the finance cost will be looking, say, say lower than FY ’24 H2 or will be higher or will be same. It is something that only time will tell and only the demand will tell. If the demands are high and if there are good orders in hand, we definitely won’t mind taking more borrowings and putting it in the business.
Saurabh Jain
Got it. Got it. Second question is with respect to trade receivables which are there at [Technical Issues] INR7.4 [Phonetic] crores in March ’24. So do we see any provisions which we made as a provision for the doubtful debt, so which are more than six months trade receivables to bad debt in the coming six months, six months? Or is there any legal cases are initiated against any of the debtors, which were outstanding as of March 2024?
Samin Gupta
No, sir. So talking about the debtors which are above six months, I’ll not take any names because I don’t think it’s ethical for me to do that. But these are two big companies which are existing in India. And these are the first two names which you might think of when you talk about any company in the infrastructure space and very well known. And it’s managed by, say, an operating system, there’s no promoter. So I’m sure you have got what I’m trying to say.
And we have a few projects which we had done for them in the last financial year. And those projects were of mall deals. And because those projects are distressed now, and due to the geopolitical situation, therefore, the payments are kind of stuck. They are saying that it will take some time and they might just release the same and they might just give the same — they’re just waiting for some more time to get clearances, and they will be paying us on time — I mean, later. So there is not a need of any legal case or any legal requirement to get into this because we value the sort of business they give apart from this project. So, we are patient with it, and we believe that, that is also spoiling our debtor days number on an average, but we are patiently waiting for them to solve this problem.
Saurabh Jain
Okay. So is that more than 25% of the debt outstanding as of March ’24?
Samin Gupta
I don’t have an exact number, but probably, yes. I’m not too sure about that.
Saurabh Jain
Okay. And do we have any — so, with respect to the finance cost, which is outstanding on debt — so on outstanding debt — so outstanding receivables. So, like ideally, I see we will be incurring cost on this side, but we’ll not be able to recover the cost from the debtors which are outstanding with them, right? Or do we have a process in place for those things as well, where we see like if you are — because of this reason, you are going to incur a cost on the short-term borrowings or on the limits. So, at the same time, will you be able to recover the cost from them also? Do we have the — [Speech Overlap]
Samin Gupta
Yes, yes. So we are — they are very supportive in that sense that they understand that the payments have been stuck up for a long time. So, we are passing on the best possible support by giving us more volumes of business and profitable business. So, we are kind of getting compensated from there as well, and it is nothing to worry about in terms of the overall health of the balance sheet.
Saurabh Jain
Okay. So general understanding way of business — doing business in India. So in similar way, they are also supporting us. Got it. Understood.
Samin Gupta
Correct. Correct.
Saurabh Jain
Understood. So — but nothing is turning out to be — so whatever the provision for doubtful debts that you made in the financial year ’23, ’24, nothing is turning out to be bad debt out of that as of now from that provisions, right? No cases initiated.
Samin Gupta
Nothing — [Speech Overlap] Some cases are going on, which are earlier initiated, but we have not initiated any new cases at the moment. And we do not see any bad debts happening anytime soon. We are very choosy, and this has been a common practice of my father and my — the entire management even before we got listed that we choose our customers very carefully. We do not just work for anybody and everybody. We work for only selective few. We work for only customers which has an entry barrier, which we work for only customers which operate through a system, and not in a promoter mindset that we’ll do this, we’ll do that, and just doing the mouth job.
Saurabh Jain
Got it. Understood. And as I saw like the last call, there was in May, the call was there for the earnings transcript for the financial year ’23, ’24, where we saw that the sales growth will be around 30% to 35% overall. So, in the first half, as we’ve already seen September, October, so do you see any uptrend in that sales growth projection? Or it’s those are — it’s going to outshine the projection or it’s going to like, be at the same level what we see as of now?
Samin Gupta
So for this financial year, we’ve already given a guidance of INR300 crores conservatively, and I would stick to the same guidance, but things are looking very positive. Things are looking very good. And we see a few large projects coming in hand. So, once that comes through, definitely, then there will be no bar to the growth Premier Roadlines Limited can do.
Saurabh Jain
Sure. Those are the questions I had.
Samin Gupta
Thank you.
Operator
Thank you very much. [Operator Instructions] Next question is from the line of Amit Agarwal, individual investor. Please go ahead.
Amit Agarwal
Am I audible?
Operator
Yes go ahead.
Amit Agarwal
Hello, Samin.
Samin Gupta
Hello sir. Yes sir.
Amit Agarwal
Nice call, nice commentary. I have some questions. One about PRL Supply Chain, which you acquired. So, how about it? And what’s the clear path? Second, you said you have done some capex. Can you put more like what kind of asset you have acquired? So, what would add value? And third is, any good customer acquisition you have done in this half H1?
Samin Gupta
Understood, sir. So, I’ll answer your question one by one. And, the first question that you asked was PRL Supply Chain Solutions. So like I mentioned earlier on the call as well, PRL Supply Chain Solutions, we are very much positive, and we will be doing international markets, and we’ll be catering to international markets. We’ve already hired top-notch individuals from this industry, having good experience in this market and having a good customer connect as well.
We will be utilizing the customer connects of Premier Roadlines Limited, where we are already registered with top-notch and marquee clients as a vendor, and we will be passing on the same vendor code to PRL Supply Chain Solutions. And that might see a good jump and a good cushion to start with. So, PRL Supply Chain Solutions, we are definitely positive about it, but we do want to give it some own time to have it, you know, proper foundation done and proper feet settled in this particular industry. And then we will be in a better position to give you a guidance about what that particular subsidiary will also be doing in terms of top line and bottom line.
Second thing that you asked me about the asset that we are planning to purchase. So, we are planning to purchase these Volvo pullers. So, they are the top-notch pullers and Volvo assets available in this market. So, these are high-capacity pullers. So, these are not the trucks that you see on the road, which you see on delivery. These are proper pullers which are capable of carrying loads up to 500 metric tons on a plane road. So, this is the type of puller we are purchasing. And also, we are purchasing hydraulic axles from TII. So, this is a German brand, and it is TII SCHEUERLE brand. It is based in Bawal here in Gurgaon, near Gurgaon. And they provide these top-notch hydraulic axles, which kind of make these heavy transportation movements very safe, very reliable and the customer is also paying a premium for the same.
So like I mentioned earlier in the call that we are planning to move a 260-tonne transformer of 500 MVA from one place to the other. So these sort of equipments will be facilitating to do these sort of movements. So, these are very high quality and these require a lot of expertise to operate. We — at the same time, we are maintaining and we are acquiring a big team to manage these assets. And also marketing it well to the customers so that the customers are also aware that there’s a good player like Premier Roadlines Limited, which is listed and which is giving good value to the Indian logistics industry is having these assets.
Also, on the second part, we are working for many big customers, which have ESG norms and which have ESG requirements. So, going forward, EV vehicles and LNG and CNG vehicles is something that is the need of the hour. And I’m happy to announce also that we have already ordered two EV vehicles on a trial basis. So these are two small capacity, only one tonne capacity EV vehicles, which we want to give to one of our esteemed clients. And I would not like to take a name of that client because it is confidential, and I have signed some agreements with them. But it is a top-notch client, and it was a huge task to get into their vendor base. They had a requirement of ESG, and they had a requirement of EV vehicles, and we successfully committed and we successfully executed the same. And we have ordered two Tata Ace EVs for them for their particular in-warehouse movements.
Talking about your third question, any notable clients that we have had over the past few months, we have had the best quality clients we would have thought of after getting an IPO. So before this, we were having, say, to give a rating of any client, I would say, say, eight on ten clients, but right now, with the sort of hunger we are having for growth, the sort of visibility we are having after the IPO, and the sort of trust we have built over the past few years, we are able to get the best of the best clients in this industry, and they are respecting us. They are giving us an opportunity to meet, and they are giving us an opportunity to execute large projects as well.
So once we get a large project from a very good organization, which we have recently acquired, we will definitely be mentioning that on the stock exchange, sir.
Amit Agarwal
Another question. You were saying you will do around INR300 crores plus, right?
Samin Gupta
Yes sir.
Amit Agarwal
So in the first half, we did INR100 crores. And second half, you are planning around — you’re projecting around INR200 crores, right?
Samin Gupta
Correct, sir. So we did INR113 crores in the first half.
Amit Agarwal
If you have anything figure in mind that what would be the revenue share of Project and ODC cargo and what will be the normal trucking business?
Samin Gupta
Sir, in H2, it is more of Over-Dimensional Cargo and Project Logistics, and the revenue mix will be definitely dominant in the H2. And it is a very — on a — we have given this guidance on a very conservative basis, and we had already discussed while giving the guidance that 35% of the revenue will be coming in the H1 and 65% will be coming in the H2. And we stick to the same, and we definitely plan on working more ahead and going more ahead of that particular guidance.
Amit Agarwal
Samin, my question is not that. My question is that in H2, H2 suppose we are doing INR200 crores. So how much will be the Project and ODC and how much will be the other business?
Samin Gupta
Yes. So like I mentioned, sir, Project and ODC will be dominant. I don’t have an exact number, but it will be definitely more than 60% [Speech Overlap]
Amit Agarwal
Any ballpark number?
Samin Gupta
60%, 65% will definitely be Over-Dimensional Cargo and Project Logistics combined together in H2.
Amit Agarwal
And what will be the margin ratio in both the business as of now?
Samin Gupta
So, Over-Dimensional Cargo and Project Logistics has a margin of 12%-plus since we have now started — since we will be having our own fleet on the road, and we already have some more fleet, which has already been on the road — after the September by — after the September end, so we expect the margins to even go higher. But to just give you a sense of it, plus 12%-plus is the margins for Project and ODC combined.
Amit Agarwal
Thank you, Samin. Good to hear you.
Samin Gupta
Thank you sir. Thank you.
Operator
Thank you very much. [Operator Instructions]. Next question is from the line of Agastya Dave from CAO Capital. Please go ahead.
Agastya Dave
Thank you very much for giving me another opportunity, and thank you for patiently answering questions. There are so many repetitions, yet you’re very like — very nicely, explaining everything. Sir, I don’t have a question. I have a small suggestion. Sir, going forward, if at all possible, can you please report the numbers on a quarterly basis? Even if you give like a very small like a bridge form of P&L, like revenues, EBITDA and PAT, even that would be very, very useful. Six months is too long a time. [Foreign Speech] And the way things are changing, you are a very new company, so it will just add to the understanding because we — it’s just six months is just too long. I think it’s a horrible rule that SEBI has come out with. You don’t need to do audited results, just some basic reporting and just some basic commentary on how Q3 went. That’s it. You don’t need — I don’t — I won’t even suggest a con-call. I just — if everything is going as per plan, you can just write that as per our expectation, as per our guidance things are going as per plan, and this is what we did in Q3. If you can move to that quarterly basic reporting every quarter, that would be of great help to the investors. I think everyone would appreciate it. So, it’s a small suggestion, sir, if at all possible, kindly consider that. Other than that, sir — [Speech Overlap]
Samin Gupta
Yeah, I definitely agree with the suggestion that you’re giving, sir, and I value your input in this. And as an investor, I can understand the sort of waiting that you have to do to understand what the company is doing. And for the investors who do not have access to directly meeting us or directly having a commentary from our side through official channels, through our IR, it is even more difficult. I highly value your suggestion, sir, but there are some challenges that we go through. And since we are a very newly listed company, which — we are a very newly listed company, I understand it’s both ways that the investors are also having some — [Speech Overlap]
Agastya Dave
I understand, sir.
Samin Gupta
Yeah.
Agastya Dave
It is sir — I’m not insisting upon it, it’s just a small suggestion, sir. And it’s a very selfish suggestion from the investor community.
Samin Gupta
Absolutely.
Agastya Dave
I know you guys will have — you will have certain bottlenecks. But if you can consider it, sir, it would be greatly appreciated by everyone. Other than that, sir, thank you again for holding the conference call and explaining everything so wonderfully. All the best, sir. Thank you.
Samin Gupta
Thank you, sir. Thank you, sir. Thank you so much.
Operator
Thank you. Next question is from the line of Raaj from Arjav Partners. Please go ahead.
Raaj Macwan
Hello. Am I audible?
Samin Gupta
Yes, you’re audible.
Raaj Macwan
I just skipped the part on the sales breakup side. In H1, you are — out of the total sales in H1, it is how much percentage of the total sales, which is in H1?
Samin Gupta
So 35% of the total financial year sales is H1, and 65% of the total financial year sales is in the H2.
Raaj Macwan
Okay. Okay. All right. And sir, for this INR10 crores capex which we are doing, so how much is the payback period?
Samin Gupta
Sir, we are yet to calculate the same, but we anticipate that two years to three years will be a good amount of time. By me saying that we are yet to calculate because it is something very special and it is something very — it has a special application. So, keeping in mind the best use case and maximum productivity, two years to three years is the best period that we anticipate the payback to be.
Raaj Macwan
All right. And sir, you have also said you are expecting a large order from a client. So how much is the time frame in which you are expecting this order if we get it?
Samin Gupta
Sir, probably by this financial year end or maybe first quarter of next financial year.
Raaj Macwan
All right. And will it be equal to our current order book or so?
Samin Gupta
Probably more than that, sir.
Raaj Macwan
All right, okay. Thank you.
Samin Gupta
Thank you.
Operator
Thank you. [Operator Instructions]. The next question is from the line of Amit Agarwal, individual investor. Please go ahead.
Amit Agarwal
I’m audible?
Samin Gupta
Yes, sir. You’re audible sir.
Amit Agarwal
Samin, I have a similar request which Mr. Dave had done. Can you go to the quarterly results, it will be great help.
Samin Gupta
Yes, sir. So your point is well noted, sir. I was trying to give an explanation to the earlier participant as well. So what happens is, sir, each financial year and each quarter ending or each half year ending, we have to close our books. But there are multiple vehicles in transit. And as per the taxation norms and as per the norms of our auditors, we have to close the books only for the consignments which are delivered and which the customer has acknowledged the POD and taken the POD.
So this is a very long process, and this is a very long cycle to identify which has been delivered, which has not been delivered. And there are sometimes one PO and multiple vehicles. So, if that multiple vehicles and out of that multiple vehicles, if even one vehicle is not delivered, that particular PO is not eligible to submit the bill. So, that PO itself is a big number. So, this is a very big sort of, I would say, a tedious task to continue to do that.
So, every financial year and every half yearly results that we will be submitting, there will be a good amount of spillover to the next financial year as well because many POs, so what we call as club billing, so for example, say, a big company gives us an order or a project. So that involves, say, for 50 vehicles. And out of the 50 vehicles, if even one vehicle is not delivered on time and even if one vehicle is not delivered till 30th September, for example, then that entire bill of 50 vehicles has to be submitted after that vehicle delivers.
So identifying those vehicles and identifying these challenges and then submitting the bill is sometimes a huge process. We are definitely working on it, sir. And we are a company which would definitely want to keep investors well informed on time, and we would want investors to know more about us in short intervals. Definitely, it is on the cards, we will not commit here, but you might see an announcement from us coming if we decide to switch to quarterly starting from the next quarter. But definitely, we are mindful of the positives of quarterly reporting.
Raaj Macwan
And then I openly, [Foreign Speech] I rate you one of the very young and you know, leadership. So I think you can evolve and you can do something. So — [Speech Overlap]
Samin Gupta
[Foreign Speech]
Raaj Macwan
So, anyways, try — try to do that, and it will be better for everyone.
Samin Gupta
Yes, sir. We are trying our level best, sir. We are trying our level best.
Raaj Macwan
It’s a demand from the investor community, so you should consider it. And try to do that.
Samin Gupta
Definitely. I definitely respect the demand. And we will work on it, sir.
Raaj Macwan
Thank you.
Samin Gupta
Thank you sir. Thank you.
Operator
Thank you. As there are no further questions, I will now hand the conference over to Mr. Virender Gupta for closing comments.
Virender Gupta
Yes. Yeah. Hello, everybody, and thank you for all being part of our conference call and for actively participating in the call. We appreciate your support and trust in us. We hope we have been able to address most of your queries. In case of further queries, you may reach out to our Investor Relations adviser, Stellar Investor Relations. Thank you. Have a good day.
Operator
[Operator Closing Remarks].