PSP Projects Limited (PSPPROJECT) Q2 FY23 Earnings Concall Transcript

PSP Projects Limited (NSE:PSPPROJECT) Q2 FY23 Earnings Concall dated Aug. 10, 2022

Corporate Participants:

Hetal Patel — Chief Financial Officer

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Office

Analysts:

Shravan Shah — Dolat Capital — Analyst

Sanjay — Envision Capital — Analyst

Bharanidhar Vijayakumar — Spark Capital — Analyst

Ravi Naredi — Naredi Invest — Analyst

Pawandeep Bhatia — Phoenix Capital — Analyst

Pankaj Singh — Trust Bank Securities Limited — Analyst

Mihir — HNI Finance Limited — Analyst

Aditya Mehta — G. K. Capital — Analyst

Agam Shah — Individual Investor — Analyst

Jainam Shah — Equirus Securities — Analyst

Uttam Srimal — Axis Securities Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the PSP Projects Limited Q1 FY 2023 Results Conference Call hosted by Dolat Capital. 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. Shravan Shah VP Research Analyst.

Thank you, and over to you, Mr. Shah.

Shravan Shah — Dolat Capital — Analyst

Thank you. Seema. Good evening, everyone. I would like to welcome you all for the Q1 FY 2023 Results Conference Call of PSP Projects Limited. We thank the management for giving us the opportunity to host the call.

From management, we have Mr. P.S. Patel, Chairman, Managing Director, and CEO, along with Mrs. Hetal Patel, CFO of PSP Projects with us. Without wasting much time, I would now hand over the floor to management for their opening remarks and then we can have a Q&A session over to you.

Hetal Patel — Chief Financial Officer

Thank you, Shravan. Good evening, everyone. Thank you for joining our earnings call. Please note that for copy of our disclosures is available on the Investors section of our website as well as the stock exchanges. Please do note that anything said on this call, which reflects our outlook towards the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risks that the company is facing.

With that, I would like to hand over the floor to MD, Mr. Prahaladbhai Patel for his opening statements.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you, everyone and Moderator. Good evening, ladies and gentlemen, and warm welcome to each one of you and thank you for joining us on Q1 FY 2023 Earnings call. I trust everyone is doing well. I believe you have already got a chance to go through the Investor’s presentation uploaded on the stock exchange.

I’ll begin with the key highlights that we did during the quarter PSP Projects reported an and strong performance in an otherwise seasonally weak quarter. We are happy to announce that we have PSP Projects have once again reported highest ever order book till date of INR4,613 crore. In comparison to all previous first quarters, the company has — this is highest ever order inflow of INR550 crore in Q1 FY23 as compared to INR4.89 crore during Q1 FY ’22 with majority being private orders.

The major projects awarded during the quarter are Pile and Raft foundation works for proposed tallest temple of the world, one of the first tallest residential tower of Ahmedabad, construction of Institutional campus in Ahmedabad for a leading Mumbai based Management Institute. We are happy to inform you that the company till date has already received an order inflow of nearly INR1,100 crore of which 70% are Institutional orders. This year the order inflow has been [Indecipherable] compared to the past five years put together.

During the quarter, we completed three projects, which includes the largest retail mall of Gujarat. All the projects were completed in time. Total projects completed till date totals to 186 projects. As on 30 June, 2022, the Government projects comprised 63% out of all the business verticals. As on date, we have 46 on-going projects of which 43% are based in Gujarat, 41% in UP, 16% in Maharashtra and 0.3% in Rajasthan.

In our portfolio, EPC and turnkey projects constitutes to about 83% and civil projects constitute to about 16%. EPC projects include planning, design, construction and post-construction activities that has opened up horizons of growth for our company since the past few years.

Bid pipeline, going forward, we have bid pipeline of approximately INR4,000 crore of which 41% is from private projects and around 51% from the state of Gujarat. About Surat Diamond Bourse, I think I should not focus too much on Surat Diamond Bourse as the project is already completed in [Indecipherable] most of the areas has already been handed over to the owners, only some portion of the basement and the final thing — final completion of accounts is going on.

An update on UP projects, yes, this time we have faced a big problem in terms of labor, because March 2020 and March 2021 were the biggest hit of corona. And during that period, none of the labor in UP, Bihar, Bengal, Orissa and Chhattisgarh were able to manage marriages. So this time, the marriage has been [Indecipherable] peak season, so we were having were having a very big problem in terms of [Indecipherable] and that’s the reason that this quarter we could not deliver to an extent of 20%, 25% growth compared to last quarter — last quarter ’21.

An update on Sports Complex, its a INR563 crore government project. The facility is being built with objective to qualify for Olympic in India. The project has already begun and is going on in full force.

Update on Bhiwandi, we have two slow moving projects that is Bhiwandi and Pandharpur, which together contribute to 16% of our outstanding order book. Rest of all projects are fully mobilized. An update on Pandharpur. To summarize, we remain optimistic and positive for the growth in Infrastructure segment due to government’s conscious efforts to accelerate economic growth through higher infrastructure spend and providing incentives to domestic manufacturing. We see private [Indecipherable] to India’s growth story with softening the commodity prices augurs well for infrastructure companies with steel prices having declined by 20% from its highs of March 2020.

With this, I conclude my remarks and now I would like to handover the call to Ms. Hetal Patel to take us through the financials.

Hetal Patel — Chief Financial Officer

Thank you, sir. The financial performance during the quarter ended 30 June, 2022, is as below. Quarter one FY ’23 versus quarter one FY ’22. Revenues from operations for the quarter is at INR345 crore versus INR317 crore, higher by 8.8% on Y-o-Y basis. EBITDA for quarter is at INR47 crore versus INR39 crore, higher by 19.6% on by Y-o-Y basis. EBITDA margin is at 13.64% versus 12.42%. Net profit for the quarter is at INR28.51 crore versus INR25.11 crores, which is higher by 13.5% on Y-o-Y basis. PAT margin is at 8.13% versus 7.8%.

During the quarter, the revenue generated from all 8 UP projects put together was INR34 crores during quarter one FY ’23. Cumulative revenue till 30 June, ’22 is INR182 crore. The revenue generated from Surat Diamond Bourse project was INR53 crore during quarter one FY23. Cumulative revenue till 30 June 2022, which reached INR1,856 crore.

Total revenue from pre-cast facility was INR14 crore during the quarter. Increase in other income is mainly attributable to increase in interest on fixed deposits from INR2.54 crores in quarter one FY ’22 to INR3.17 crore, mainly due to increase in fixed deposits from INR220 crore as on 30 June ’21 to INR317 crore

As on 30 June, ’22. Increase in interest received on mobilization advance which is received from contractors of UP projects from INR3 lakhs in Q1 FY ’22 to INR1.35 crore in Q1 FY ’23.

Profit on sale of old plant and machineries INR46 lakhs, which was not there in Q1 FY ’22 other income. Employee expense has increased by 43.5% on Y-o-Y basis, the increase is mainly due to annual appraisals and increments during the April ’22 and increase in managerial remuneration. There is no significant change in revenue for the year on consolidated basis.

We’d like to mention few of the important balance sheet numbers as on 30 June, 2022. Long-term borrowing has increased from INR34 crore to INR50 crore as on 30 June, 2022. The increase is due to long-term loan of INR20 crore availed from bank at 7% for Sports Complex instead of availing mobilization advance from client at 10% interest. There is no significant increase in working capital based short-term borrowings.

On March ’22, it was INR66 crore and June ’22, it was INR67 crore. FY ’21 was INR68 crore. So it will remain between INR60 crore to INR75 crore, though we have total fund based facility of INR140 crore. Gross block of assets is INR347 crores and net block of asset is INR207 crores. And additions during the quarter is INR3 crore. Amount due from customers that is unbilled revenue is INR128 crore, which mainly comprises of Kashi and some other major projects. Amount due to customers advanced billings that is INR24 crores retention — non-current INR79 crores — retention current INR37 crores long-term borrowings INR50, short-term borrowing INR67, mobilization advance INR140 crores working capital days are as follows.

Debtor days are 70, creditor days are 54, inventory days are 19 2019. Total net working capital days are 35. Out of total credit facility of INR1,047 utilized seismic that is INR579 crores of which INR53 crore are fund based utilization and the fixed price pricingINR526 in utilization.

These loans as on 30th June 2022. The company has taken it of INR317 Albert because it’s obvious that rupees INR172 crores are under lien with the bank for credit facilities and given to the client as a security deposit amount. The INR5 crores. Work on hand on June 30, 2022. If so, how the INR4,613 crores and nicer basin in numbers are shown in uploaded of this presentation.

That concludes the update on financials and we are now open for the question and answer session. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin with the question-and-answer session. Ladies and gentlemen, we will wait for a moment, while the question queue assembles. Thank you. Okay. We’ll take our first question from the line of Mr. Sanjay from Envision Capital [Phonetic]. Please go ahead, sir. Mr. Sanjay, your line is in talk mode, sir. Please go ahead.

Sanjay — Envision Capital — Analyst

Yeah, I’m just going ahead. The government projects are contributing approximately 63%.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Your voice is very low.

Sanjay — Envision Capital — Analyst

Okay. Okay. I’ll try to improve, sir.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Sanjay — Envision Capital — Analyst

…projects. What is the timeline receiving the amount from the government’s projects as you said that 63% of this order book is coming from government projects. So can you some — highlight something on this?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

What is the — which timeline are you asking for?

Sanjay — Envision Capital — Analyst

Sir, the payment timeline. I mean, the amount which is received from government on these projects? As the order book is majorly from the government right?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

It is more on monthly basis and monthly billing. And usually by next month [Technical Issues].

Sanjay — Envision Capital — Analyst

Okay. It is on monthly basis.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Sanjay — Envision Capital — Analyst

Okay. Okay. And then Major CapEx plans. I mean, now we are looking forward for this FY ’23?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. [Indecipherable] depends on the project which we receive and once the projects are received then we decide up on the [Indecipherable] that’s really usually — I always tell you my past experience it ranges between 3% to 4% of the sales, been easy. I’ve always said. But that’s excellent doing this inventory reserve as and the sales always average. In which we are doing every year.

Sanjay — Envision Capital — Analyst

Okay. That is all from my end. Thank you so much.

Operator

Thank you. We take the next question from the line of Bharanidhar Vijayakumar from Spark Capital. Please go ahead, sir.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Yeah, Good evening, sir. We were in the process of bidding for the Executive Conclave as part of the Central Vista. So what is the status of that bid sir?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

See, Central Vista, the last project which was announced was the Executive Enclave, and we did not — participate. But, [Indecipherable] any enquiry has came up, but yeah, [Indecipherable] substantial value will be bidding for that.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. Okay. How much is the potential upcoming bid from the Central Vista in your view?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think the after March only one tender has been completed, that is Executive Conclave, which was about INR1,200 crore. So probably, if we consider the previous value of INR20,000 crore it must have reached to INR6,500 crore. So I think INR12,000, INR13,000 crore is yet to come.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. And this will come, say, in the next one year?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

It should be because the government has already planned to complete till [Indecipherable] 2026. So, it should [Technical Issues]

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. Okay. And there were also a few other opportunities like Sports Complex in Ahmedabad, residential projects in Mumbai, et cetera. So, can you highlight the bid pipeline more in granular detail where are these big pipeline projects that you see upcoming?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

So there are few projects which we are targeting, and which we are very keen to bid early and which we are all positive and — for the conversion to project side as gem and jewellery park in Mumbai. Second one is Municipal Corporation building which is in Gujarat at Surat, and few projects from Adani, we are also working with them and we are expecting some orders to come from them — that side also on airports and their corporate buildings also.

One more project of DLF residential, which we have just started thinking about and bidding for that is INR1,000 crore in Delhi. So the potential for bidding is not a big problem as far as companies like us are concerned. It is only [Indecipherable]. So, we have already reached to order book of INR1,000 crore plus [Indecipherable] first quarter, I think we’ll be going a little bit slowly and safely and let’s hope we — as have sort of [Indecipherable] 2023 inflow out of that INR2,200 crore I think almost represent we have reached, so let’s hope for the better projects to come in Gujarat and better opportunities in Gujarat at the same time some project is Delhi and Mumbai.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. So you’re telling the order inflow for the full year expected is about INR2,200 crore?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

INR2,200 crores that’s the revenue what we are expecting minimum that much we are [Indecipherable]

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. And how And how is the competitive intensity for bidding in these projects?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

See I think and I always say when the sizes projects are more than INR600 crores, INR700 crores, the competition is always between 4 or 5 large companies which all know. And now when the projects are more than 1,000 Crore the same competition remains. So as such when we as a company bidding for projects up to INR150 crore in corporate, the competition is a little bit less. And when we bid some projects with government, beyond 500 crore against the competition is very niche even with the large companies only.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. And then how does your ability to pass on cost escalations in the overall order book of INR4,600 crore, so how much percentage would have full cost pass-through mechanism.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think as we are seeing at about 61% of order is from outside Gujarat and out of that 15% is from — within that 15% projects of Maharashtra. So, it is a 45% project, which we are doing in UP, where the pass-through is not there. It’s on the fixed price and rest of all the projects are pass-through.

Bharanidhar Vijayakumar — Spark Capital — Analyst

Okay. Okay, sir. So, that’s it from my side. All the best to you sir.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you, thank you. [Indecipherable].

Operator

Thank you. We take the next question from the line of Mr. Ravi Naredi from Naredi Invest [Phonetic]. Please go ahead, sir.

Ravi Naredi — Naredi Invest — Analyst

Thank you, Prahaladbhai you are doing. Excellent, well and in systematic way. Sir, my point is what about Maharashtra project. Those are stand still do you get any revival soon Bhiwandi and Pandharpur?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Pandharpur, we have not heard too much about that, but since the matter is in court matter is in court and the matter is today where it was in a hearing, but it is still [Indecipherable] 17 August. But yes, the government has initiated to revive that project, but it has some difference in value that it may go beyond INR1,000 crore. But we are still positive, let us hope for some better, because betterment has — the government has changed in Maharashtra, will the projects will get revived, to some extent.

Ravi Naredi — Naredi Invest — Analyst

Okay. Okay. That is a good thing and what be the long-term margin trajectory in next two to three years. Since you had given in investor presentation around 8% to 9% in last five years.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. See, again, that is the question, which I. I was asked and I will try to maintain that should be within the range of 7% to 8%. And when it comes about EBITDA level it should be [Indecipherable] 11% to 13% that depends on quarter-to-quarter and the type of project each year means. And what level project is doing well in each quarter? So there is still time and make sure that [Indecipherable] range.

Ravi Naredi — Naredi Invest — Analyst

Okay. And what margin we get in the pre-cast?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Pre-cast is again based on the same calculation as we see [Indecipherable] more of the same construction part only, it is [Indecipherable]. So whatever gross profit which we calculate in tender [Indecipherable] depending on the type of the project and lead of the project. So that should remain in the same criteria as we do in construction.

Ravi Naredi — Naredi Invest — Analyst

So, margin will be around how much?

Pawandeep Bhatia — Phoenix Capital — Analyst

As I said, it should be around 11% to 12% of EBITDA level.

Ravi Naredi — Naredi Invest — Analyst

Okay, okay. Thanks. Thank you all the best [Indecipherable]. Thank you.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Sure.

Operator

Thank you. [Operator Instructions]. We take the next question from the line of Mr. Pankaj Singh from Trust Bank Securities Limited [Phonetic]. Please go ahead, sir.

Pankaj Singh — Trust Bank Securities Limited — Analyst

First of all thank you for providing me this opportunity. Congratulations on a decent numbers that you have posted. Sir, my first question is that, sir, most of our projects are in Gujarat in Uttar Pradesh and Maharashtra after — so do we have any plans to cover other areas or other regions?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

See, as I have always said our first target is always Gujarat. And once we explore a new state which we have [Phonetic] further opportunities in that state [Indecipherable] state as our area. So as I said previously we working in Gujarat then we got an opportunity work in Kashi Vishwanath Dham in UP and then later on then came with few tenders. As we were comfortable in UP, we explored to the all of the UP. So, it is not about going in any state. It is more about how much we are comfortable, what value project we were getting and what type of project it is and what level of competition it is. So, we will like to explore new states only and only when that we meet two other criteria of how’s the competition and what type of project it is.

Pankaj Singh — Trust Bank Securities Limited — Analyst

Okay, Okay, sir. The next question is, sir. In the last con call that you’ve mentioned about some government residential project in Delhi, which is worth INR100 crores, are you still bidding for it or we have got this order, what’s the status?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Government residential project of INR100 crore in Delhi?

Pankaj Singh — Trust Bank Securities Limited — Analyst

Sir, INR1,000 crores. INR1,000.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Presently, project which we are seeing that was in the last year [Indecipherable] and that presently which [Indecipherable].

Pankaj Singh — Trust Bank Securities Limited — Analyst

Okay. Sir. The order addition this quarter, and please provide the run rate for the few large projects in quarter one, sir.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Pardon me?

Pankaj Singh — Trust Bank Securities Limited — Analyst

Order addition. Order addition this quarter.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Order addition, we have already said that it is about INR1,000 crore in total this quarter.

Pankaj Singh — Trust Bank Securities Limited — Analyst

Okay, sir.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

[Speech Overlap] I’ve already mentioned in my initial remarks about stock [Indecipherable] about one of the [Indecipherable] Ahmedabad and then [Indecipherable].

Pankaj Singh — Trust Bank Securities Limited — Analyst

Okay, sir. And sir. Next question is that, can we expect that we will be debt free in the next one to two years?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Maybe something which I can’t promise you, but yes, rather possibly, we are not too much [Indecipherable] a long-term debt, and that is something which I don’t feel is too much as far as our balance sheet is concerned.

Pankaj Singh — Trust Bank Securities Limited — Analyst

And sir, the last question is, sir, — sir as we have seen sir the metal prices [Indecipherable] cement prices are also softened. So, do we have some sort of benefit of these kind of commodity prices downward or decline on our operating cost?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

See, it is not a benefit on the existing projects, we’ll simply survive from losses. So I think that this is the benefit blessing in disguise that some of the projects are on fixed prices, which we quoted in March 2021, so that the benefit that we may go for [Indecipherable] is not — profit is not eaten by the steel price. Otherwise, in most of the new projects [Indecipherable] 31% of the current prices, so that should not [Indecipherable].

Pankaj Singh — Trust Bank Securities Limited — Analyst

Okay, sir that’s all from my side. Thank you, sir.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. [Operator Instructions]. We’ll take the next question from the line of Pawandeep Bhatia from Phoenix Capital [Phonetic]. Please go ahead, sir.

Pawandeep Bhatia — Phoenix Capital — Analyst

Hello.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Pawandeep Bhatia — Phoenix Capital — Analyst

Sir, thank you for the opportunity. You were talking the last participant and you said we aspire to maintain 10%, 11% margin is it for the pre-cast, right, you were telling?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Pawandeep Bhatia — Phoenix Capital — Analyst

Pre-cast structure.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Pawandeep Bhatia — Phoenix Capital — Analyst

So our margins was…

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

The question was — so question was asked specifically for pre-cast division, the margins would be the same as we were expecting building construction. The pre-cast margin will be same, that the questions, so I answered [Indecipherable].

Pawandeep Bhatia — Phoenix Capital — Analyst

Okay. So just to get it right. Our margin is pre-cast that’s the CapEx that was done recently is going to be in the range of 11%, 12%?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Pawandeep Bhatia — Phoenix Capital — Analyst

And sir, one last question. You have earlier, you used to give residential breakup in your presentation. And if I remember it was around INR500 crore to INR700 crore order book what is the current breakup of residential and government — residential private I mean?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think government is only the project, which is now on a slow moving pace [Phonetic] Bhiwandi. Rest of the private residential I think that we don’t have any project as of now, but.

Hetal Patel — Chief Financial Officer

It is still given, we have a bifurcation of the government residential projects then private residential project.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Can you go back to our presentation and confirm, because I’m not sure about what is the exact percentage.

Pawandeep Bhatia — Phoenix Capital — Analyst

Okay. I’ll cross-check, but sir. What is the guidance here because the private residential sector you few quarters you said that you were positively looking into all these segments? And you were very, very positive on the real estate cycle.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think there is some misunderstanding, I have never commented that we are [Indecipherable] private residential sector. I always go by the project in the project value and really as far as developing business is concerned, we are too much cautious and we usually bid for the projects for which the company’s credentials are good. So [Indecipherable] never expected so many orders from private government or private residential. So only three or four developers from Ahmedabad [Indecipherable] so out of them one large developers has already given an order, which we’ve already declared, which was about INR250 crore private residential, which is when — now which we have just started before 15 days.

Hetal Patel — Chief Financial Officer

And we have around INR694 crores on residential projects — private residential. It’s on page number 17 of our presentation.

Pawandeep Bhatia — Phoenix Capital — Analyst

Yes. Yes, I understand now yes. [Speech Overlap]

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think, Adani real estate [Indecipherable].

Pawandeep Bhatia — Phoenix Capital — Analyst

Yeah. Okay, thank you sir thank you opportunity.

Operator

Thank you very much. We take the next question from the line of Mr. Mihir [Phonetic] from HNI Finance Limited [Phonetic]. Please go ahead, sir.

Mihir — HNI Finance Limited — Analyst

Sir. Thank you for the opportunity. My first question is regarding your receivable days like for the quarter one FY ’23. [Technical Issues] And another question.

Hetal Patel — Chief Financial Officer

Sorry. Sorry to interrupt.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Your voice is not very clear. Your first question yet we have not heard properly.

Mihir — HNI Finance Limited — Analyst

Okay. Okay. Sorry. First question is regarding your receivable days that your receivable days increased when compared to previous quarters. And the second question is, I believe your accounting is done based on the completions [Indecipherable] like I may be wrong. This is a question like your March accounting is always differ than your other quarters like you always report aggressive revenue during the March quarter, but somehow your first quarter is very low. So can you just give me a light on this.

Hetal Patel — Chief Financial Officer

See, it is not based on accounting quarterly accounting is — different. The thing is like the industry is seasonal always Third quarter is good. If you look at the environmental seasonal effect.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, as far as construction field is concerned, first quarter [Indecipherable] in the month of April, May and June, where the — just after Holi, there is a crisis of people. In April, maybe it’s a more a season of marriage for the labor class people. At the same time, we in those period, there is a less availability of people, so the quarter is little bit weak. And before that, second quarter again it’s a monsoon and those types of majorly holidays. So just start of the second till the last year the festival season [Indecipherable]. So mostly the last quarter is better compared to the first quarter of each year.

Mihir — HNI Finance Limited — Analyst

Okay. Understood. And one more — last question is regarding your project in the industrial sector. So whether you’re exploring more on the industrial side or you are thus — as you mentioned that you are not as much as bullish on your retail side — residential side and you are just dealing with some prime clients only like Adani or DLF. So whether you’re exploring any particular industry for the — your business purpose or we are continuing with your already which [Indecipherable] like Zydus or something else.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no. See, it is again about the opportunities. We work in corporate; we work with the large developers, weather it is residential or commercial or we work with large projects on the government side. So [Indecipherable] more about any building where we have done a project. And at the same time, what level of competition it is and what level of payment facilities are available in that organization. So we bid by that only, so it’s not something like that we are bullish on any of the field. So anything related with the building, we work for all types of buildings, but we just need to check what the prices which we are getting and what level of competition it is.

Mihir — HNI Finance Limited — Analyst

Okay. Understood. That is all from my side.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you, sir. [Operator Instructions] We take the next question from the line of Aditya Mehta from G.K. Capital. [Phonetic] Please go ahead, sir.

Aditya Mehta — G. K. Capital — Analyst

Yeah, good evening, sir. Thanks for the opportunity.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Good evening.

Aditya Mehta — G. K. Capital — Analyst

So, sir, out of our total order book of INR4,600 crore, how much are we planning to execute in this financial year?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

So we have given a projection of about INR2,200 crore, which we are planning to continue this year.

Aditya Mehta — G. K. Capital — Analyst

So that will be approximate 25% growth over last year?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Aditya Mehta — G. K. Capital — Analyst

But if you look at our Q1 quarter, the quarter-on-quarter growth is very low. So what might be the possible reason for that?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

So this time there was a huge marriage season between the labor, who last two years, March ’20 and March ’21, there was the Corona period and they were not able to arrange any marriage. So there was a huge season of marriage. And in Gujarat, there was a big strike of aggregate materials. So, both the things have affected in our first quarter. But in general, obviously, if you see quarter-to-quarter, every year around the first quarter, we think they are always much weaker than the previous quarter or the last quarter of each year.

Aditya Mehta — G. K. Capital — Analyst

Okay, sir. Okay, sir. Thank you. That’s it from my side.

Operator

[Operator Instructions] We take the next question from the line of Agam Shah, he is an individual investor. Please go ahead, sir.

Agam Shah — Individual Investor — Analyst

Hi, sir. Congrats on good set of numbers. So, good question on the order book, you said the pipeline for this year is what INR2,200 crores or that much order will be [Speech Overlap] how do you look at?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Yeah. The minimum that is the threshold which I keep it in my mind and we can go beyond also depend on the opportunity to get obviously amendments to go. So, let us hope for the better [Indecipherable].

Agam Shah — Individual Investor — Analyst

Broadly INR2,000 crores is what incremental order, we will be adding this year is what I look at it.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah, that’s the minimum threshold, which I [Indecipherable].

Agam Shah — Individual Investor — Analyst

Okay. And anywhere, where your L1 bidder or the any which can be the highest for this year. Any color on that?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Presently I cannot predict on that, but the L1 one that’s once tender where we were L1 was the medical [Indecipherable], sorry. The tender has already been rejected and the government has already issued the new tenders [Indecipherable]. The second time also, but the second time we couldn’t get the opportunity. So, rest of the things are it’s not easy to predict as L1 today. But, yeah, there are some of the INR200 crore, INR300 crore [Indecipherable] crore, which are almost [Indecipherable] which we are expecting to close by this [Indecipherable].

Agam Shah — Individual Investor — Analyst

And on the Maharashtra project, [Indecipherable] project. So do we expect the work to get started in next quarter. Since the change in the government’s.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Probably because this is not on this next quarter at least I should say minimum by third quarter something should be — [Indecipherable] positive.

Agam Shah — Individual Investor — Analyst

And we can expect the entire order to be executed. Now, with the change in the government or still no clarity.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Probably, the work is you need — the work is again be allotted to us and it was [Indecipherable] more than what we would — as you would think, so it will be on a little bit higher value.

Agam Shah — Individual Investor — Analyst

And if it all doesn’t come through, any hit we’ll have to take or that has already been taken care of?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think that has been already.

Hetal Patel — Chief Financial Officer

Already been taken care of, Whatever expenses where there, we have already booked in last financial year.

Agam Shah — Individual Investor — Analyst

Okay. Okay. That’s it from my side. Thank you and all the best.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you. Thank you.

Operator

Thank you. We take the next question from the line of Mr. Shravan Shah from Dolat Capital. Please go ahead, sir.

Shravan Shah — Dolat Capital — Analyst

Yeah. Thank you. Sir, just again, trying to understand on the revenue front, particularly. So as you mentioned, sir, INR2,200 crore revenue that we are looking for FY ’23. So, in the next nine month, we need to do a 30% growth, so we are confident that we can, we can do with the existing order book?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah, yeah, of course, we can do without any [Indecipherable]. The only reason this quarter was weak as I explained that this absolutely because of the marriage season and the issues related to strikes of aggregate suppliers [Indecipherable] suppliers from Gujarat.

Shravan Shah — Dolat Capital — Analyst

Okay. And also you mentioned the L1 Gujarat Navsari medical college [Phonetic] INR659 crore. That got canceled and re-bidded, but we did not got that project is that right?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. You are right. You are right.

Shravan Shah — Dolat Capital — Analyst

Okay. Okay. And in terms of the INR4,000 crore bid pipeline that you mentioned, if you can give the value of the projects, a couple of projects out of that then it would be helpful.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

So as I told you the gem and jewellery park which have bided in Mumbai, which was about INR1,000 crore, there is a Museum [Indecipherable] INR100 crore.

Shravan Shah — Dolat Capital — Analyst

I’m sorry sir. If you can slow it, then it will be better.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

The gem and jewellery park in Maharashtra, it is INR1,000 crore.

Shravan Shah — Dolat Capital — Analyst

Okay.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Then a museum in Vadnagar is about INR100 crore, pre-cast that order from L&T was about INR200 crore.

Shravan Shah — Dolat Capital — Analyst

INR400 crores?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

INR200 crores.

Shravan Shah — Dolat Capital — Analyst

Okay. INR200 crores.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Noodle factory at Gujarat INR100 crore.

Shravan Shah — Dolat Capital — Analyst

Okay. And. And then DLF residential also INR1,000 crores is part of the.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

INR1,000 crore and Surat Municipal Corporation high rise towers corporation building it is INR1,000. So, the major is gem and jewelry INR1,000 crore, Municipal Surat Corporation, INR1,000 and DLF residential INR1,000. Rest of the project are between INR100 crore to INR200 crore and one Indian Navy Project in Karnataka is 800 crore.

Shravan Shah — Dolat Capital — Analyst

Karnataka is INR800 crore?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Indian Navy project.

Shravan Shah — Dolat Capital — Analyst

Okay. So most of these — particularly this DLF one, which is a private one and the rest is — seems like most of the government one. So in terms of the finalization, so where — when can we see the final outcomes so — and hope that we should be getting at least one or two larger projects, which is much needed.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

I think about INR300 crore or INR400 crore-odd crores of order I am discussing at the last stage. So, probably that I expect we should conclude by the end of August and the rest of the projects are — rest of the tenders [Indecipherable] at the bid stage. So probably that can go in the month of September.

Shravan Shah — Dolat Capital — Analyst

Okay. Okay. Okay. Yeah, that’s it from my side. Operator?

Operator

Thank you, sir. We take the next question from the line of Mr. Jainam Shah from Equirus Securities, please go ahead, sir. Mr. Jainam Shah, your line is in talk mode, sir. Please go ahead with your question.

Jainam Shah — Equirus Securities — Analyst

Yeah, thank you for the opportunity. Start with IIM Ahmedabad project, so what is the outstanding order book as of June, and when are you expecting to complete the sale [Phonetic] project?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

You’re talking about IIM Ahmedabad?

Jainam Shah — Equirus Securities — Analyst

Yes.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

IIM Ahmedabad are the campus, which is in the new campus which is almost completed and we have handed over. The work which we started just before

Diwali that was in the old campus that we will be expecting to be completed by March ’23.

Jainam Shah — Equirus Securities — Analyst

Okay, okay, sir. And sir, about the UP medical projects. So we have executed around INR34 crores of work during this particular quarter — all over overall revenue was subdued during this particular quarter across the projects. However, the timeline for the projects was around 18 months or so. So how we are going ahead with that project in terms of execution.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

These projects were — these projects were given mostly at the time of Corona and in the Corona period already there some of the projects were already extended to five to six months, so most of the projects, now extended timeline is March 23 and some of the project like Sonbhadra and Kushinagar, where the space for medical hospital was given just before two months that may go to month of July ’23.

Jainam Shah — Equirus Securities — Analyst

Okay. So significant execution is expected post this monsoon season?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Jainam Shah — Equirus Securities — Analyst

Okay, sir. Thank you, sir. That’s it from my side.

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you. Thank you.

Operator

Thank you, sir. We take the next question from the line of Uttam Srimal from Axis Securities Limited. Please go ahead, sir.

Uttam Srimal — Axis Securities Limited — Analyst

Yeah. Thanks, sir, for giving the opportunity. My question is to Hetal madam. On interest cost has gone down this quarter, so this is a sustainable amount or it will increase going forward?

Hetal Patel — Chief Financial Officer

Sorry, I didn’t get your question.

Uttam Srimal — Axis Securities Limited — Analyst

Madam, interest cost has come down this quarter compared to last quarter, quarter four FY ’22. So, this is sustainable level or it will increase going forward?

Hetal Patel — Chief Financial Officer

Yeah. This will remain going forward because if you see compared to the quarter. The utilization of fund base is lesser.

Uttam Srimal — Axis Securities Limited — Analyst

Okay, so.

Hetal Patel — Chief Financial Officer

During the quarter.

Uttam Srimal — Axis Securities Limited — Analyst

So the sustainable run rate would be around INR70 crores INR75 crores? [Speech Overlap]

Hetal Patel — Chief Financial Officer

Yeah. Between this range, yes. It will be around INR70 crores to — yes, INR65 crores to INR70 crores.

Uttam Srimal — Axis Securities Limited — Analyst

Okay. Ma’am. Okay, ma’am. That’s all from my side. Thanks.

Operator

Thank you, ladies and gentlemen, that was the last question for the day. I now hand the conference over to Mr. Shravan for closing comments. Thank you, and over to you, sir.

Shravan Shah — Dolat Capital — Analyst

Thank you, sir, for giving us the opportunity to host the call and thank you all the participants. Sir, do you have any closing comments?

Prahaladbhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. Once again, thank you everyone for joining us and your continuous support and trust on us. We hope that we have been able to address most of your queries. In case of any further queries or clarifications, you may listen to our investor relation advisory E&Y and they connect with you offline. Thank you. Dolat Capital and moderator for hosting our call. Thank you Shravan.

Hetal Patel — Chief Financial Officer

Thank you, everyone.

Shravan Shah — Dolat Capital — Analyst

Thank you, sir. Thank you, sir.

Operator

[Operator Closing Remarks]