PSP Projects Limited (PSPPROJECT) Q3 FY23 Earnings Concall Transcript

PSP Projects Limited (NSE: PSPPROJECT) Q3 FY23 earnings concall dated Jan. 18, 2023

Corporate Participants:

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Hetal Patel — Chief Financial Officer

Analysts:

Amar Kedia — Ambit Capital — Analyst

Shravan Shah — Dolat Capital — Analyst

Nikhil Kanodia — HDFC Securities — Analyst

Alok Deora — Motilal Oswal — Analyst

Nikhil Abhyankar — DAM Capital — Analyst

Jiten Rushi — Axis Capital — Analyst

Sameer Shah — Sameeksha Capital — Analyst

Uttam Kumar Srimal — Axis Securities — Analyst

Prem Khurana — Anand Rathi — Analyst

Vishal Periwal — IDBI Capital — Analyst

B. Vijay Kumar — Spark Capital — Analyst

Akshay Kothari — Envision Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Q3 and Nine Months FY ’23 Earnings Conference Call of PSP Projects Limited, hosted by Ambit Capital. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Amar Kedia from Ambit Capital. Thank you and over to you.

Amar Kedia — Ambit Capital — Analyst

Thank you, Shashi. Good afternoon everyone and a warm welcome to the Q3 FY ’23 earnings con-call of PSP Projects. We have the management today being represented by Mr. P. S. Patel, Chairman, MD and CEO; and Mrs. Hetal Patel, CFO of the company.

I will now hand over the call to the management for their opening remarks, post which we will open up the floor for Q&A. Over to you ma’am.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Actually, the call is not very clear. Can we reconnect it or should we connect from here? Because your voice is breaking too much.

Operator

Sir, when I’m speaking, are you able to hear this, clearly?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

It is sometimes clear and sometimes breaking. Yes, no, your voice is breaking, maybe because of the net issue.

Operator

You can disconnect, sir. I’ll call you back.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Okay.

Operator

Thank you. Ladies and gentlemen, please stay connected. We are reconnecting the management team. Ladies and gentlemen, we have the management team.

Sir, please go ahead.

Hetal Patel — Chief Financial Officer

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

With that, I would like to hand over the floor to our MD, Mr. Prahaladbhai Patel for his opening remarks. Thank you.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you, Hetal. Good evening, everyone. A warm welcome to each one of you, and thank you for joining us on quarter three, nine months financial year ’23 earnings conference call. I trust everyone is doing well. I believe you have got a chance to go through the financial results and investors presentation uploaded on the stock exchange and website.

The quarter has been decent in terms of execution and revenue after two subsequent quarters. During quarter three, FY ’23, revenue recorded from all seven UP projects is to the tune of INR165 crores and INR268 crores as on nine-month FY ’23. The execution is being streamlined and you will see a better execution going forward from here. During quarter three, FY ’23, revenue growth recorded was 2% year-on-year, largely because of higher proportion of near completion projects during quarter three, FY ’22. Revenue during the quarter grew by 39% quarter-on-quarter, largely aided by our execution in seven UP projects together.

EBITDA margins have been in line with our guidance. On the order book front, PSP Projects has outstanding order book fill rate of INR5,075 crores. During nine months FY ’23, the company has received highest ever order inflow of INR1,950 crores, excluding GST, as compared to INR978 crores during last nine months FY ’22, a 100% growth year-on-year basis. During the current financial year of FY ’23, majority of the projects awarded are from the state of Gujarat. One major development that took place in the company was government project of Surat Municipal Corporation worth of INR1,344.01 crores in January 2023, thereby taking our outstanding order book to INR6,418 crores and order inflow as on FY ’23 to INR3,294 crores, surpassing our order inflow guidance of INR2,500 crores this year.

The SMC project awarded is for construction of 227-storey state-of-the art high-rise office building with a built-up area of 2.20 lakh square meter. It is a turnkey project with 36-month completion. This company building will be one of the tallest administrative building in India and tallest in Surat. We are happy to announce that the company has completed 200 projects so far since its inception in 2008, with 85% prior projects consisting of institutional, industrial and residential projects and balance 15% were government projects. As on nine months FY ’23, we have 46 ongoing projects. In many of our existing products, the company has started supplying certain materials through our precast facility, which will — shall help achieve faster execution and aid us in maintaining the quality and speed.

I shall now inform certain key highlights that took place during the quarter and nine months. Total two projects were completed during this quarter. They are the tallest residential project of Gujarat awarded by Nila Infra and our 7th project in Gift City of INR1,922 crores, industrial project by leading chemical company based out of Baroda. Further, we received a repeat industrial order to construct its own [Phonetic] factory and an additional order received from Adani Airport. This year the order inflow has been the highest as compared to the past 5 years.

During the quarter, we completed four projects. All the projects were completed in time, newer prominent projects completed at downstream project of Torrent, Reliance Jamnagar project for animal rehab and rescue, industrial project for Ram Agri Group near Ahmedabad. As on nine months, FY ’23, out of outstanding order book, the government projects completed 52% institutional projects comprises 26%, industry — 52%, institutional projects compared to 26% — comprised of 26%. Industrial and residential project comprised of 11%. As on date, we have 46 ongoing projects. Of which, 53% are based in Gujarat, 32% in UP, 14% in Maharashtra.

EPC and company projects constitutes 69% and civil projects constitute 31%. EPC projects, simply planning, designing, construction and post construction activity that has opened the horizons of growth for our company since last few years. This lifeline — going forward, we have a pipeline of approximately INR4,500 crores, of which 60% is from prior projects and around 25% from the state of Gujarat. Few of the major projects in our bid pipeline are gems and jewelry park in Mumbai, INR1,200 crores; Central Vista MP Chambers at Delhi NCR, INR1,210 crore; private residential township in Delhi NCR, INR500 crores; IT park in Chennai, INR370 crores; development of Tehri Dam, INR334 crores; industrial project in Hazira, INR300 crores; Delhi Metro MEP package, INR200 crores; one of the tallest residential in Ahmedabad, about INR120 crores.

To summarize, this financial year, by far, has been the best year in terms of order increase, which will very well be reflected in our bid bag [Phonetic] going forward. A pickup in private capacity is adding to India’s growth story. We are confident and positive for the growth in our business segment too.

With this, I conclude my remarks. And now, I would like to hand over the call to Mrs. Hetal Patel to take us through the financials.

Hetal Patel — Chief Financial Officer

Thank you, sir. The financial performance during the quarter ended December 2022 is as below.

Operator

Sorry, ma’am. Can you repeat please? The audio was not clear right now. Kindly repeat.

Hetal Patel — Chief Financial Officer

Yes. Thank you, sir. The financial performance during the quarter ended 31st December, 2022 is as below. Quarter three FY ’23 versus quarter three FY ’22, revenue from operations for the quarter is at INR497 crores versus INR486 crores, which has increased by 2% on a Y-o-Y basis. EBITDA for quarter is at INR62 crores, versus INR74 crores, which is lower by 17% on Y-o-Y basis. EBITDA margin is at 12.39% versus 15.25% of quarter three FY ’22. Net profit for the quarter is at INR35.32 crores versus INR46.94 crores, lower by 25% on Y-o-Y basis. PAT margin is at 7% versus 9.5%.

During the quarter, the revenue generated from seven UP projects put together was INR165 crores and cumulative revenue till 31st December, ’22 is INR417 crores. Decrease in other income is mainly attributable to reversal of impairment of loan of INR2 crores to subsidiary company, PSP Projects and Proactive Constructions Private Limited in quarter two, which was not there in quarter three FY ’23. Increase in employee expense is mainly due to increase in employee strength, annual appraisals and increments and increase in managerial remuneration during nine months of FY ’22-’23. Increase in finance cost can be attributable to increasing utilization of fund-based limits, increasing interest rates and issuance of bank guarantees for newly awarded projects.

I would like to mention few of the important balance sheet numbers as on 31st December, ’22. Our long-term borrowing stands at INR51 crores, which was INR46 crores in quarter two, short-term borrowing, INR140 crores, gross block of assets, INR380 crores, net block is INR217 crores and addition during the quarter is INR29 crores, which includes purchase of capital assets for new sites, net amount due to customers is INR15 crores, net unbilled revenue, INR150 crores, retention non-current, INR101 crores, retention current INR33 crores, mobilization advance is INR169 crores.

Working capital days are as follows. Debtor days are 79, creditor days are 60, and inventory days are 22. Total net working capital days are 41. Out of total credit facility of INR1,047 crores, utilized limit is INR858 crores, of which INR140 crores are fund-based utilization and INR718 crores is non-fund-based utilization. Increased fund-based utilization can be attributable to additional capex mobilized at new sites and significant payment of advances to suppliers and contractors for UP projects. Increasing non-fund-based limit also justified on account of bank guarantees issued for new sites.

As on 31st December, ’22, the company had total fixed deposits of INR316 crores, out of which three deposits are of INR60 crores. FDs worth INR253 crores are under lien with bank for credit facility. And FDs given to clients’ security deposit amounts to INR3 crores. Work on hand as on 31st December ’22 is INR5,075 crores.

That concludes the update on financials, and we are now open for Q&A session. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-answer session. [Operator Instructions] We have our first question from the line of Mr. Shravan Shah from Dolat Capital. Please go ahead.

Shravan Shah — Dolat Capital — Analyst

Thank you. First of all congratulations for significant order win. But on the execution front, sir, this quarter seems to be a much, much lower versus expected.

Operator

Sorry to interrupt. Can you use your handset, please?

Shravan Shah — Dolat Capital — Analyst

I’m using my handset. Am I audible clearly, sir?

Operator

There is an echo when you’re speaking.

Shravan Shah — Dolat Capital — Analyst

Is it better now?

Operator

Yes, please go ahead.

Shravan Shah — Dolat Capital — Analyst

Yeah. Sir, I was saying that in terms of the execution this quarter seems to be a much, much lower versus what we were expecting. So, last quarter, we said particularly in UP projects, we were expecting INR250-odd crore kind of execution and now we have only INR165 crore, so INR85 crore less. So total for FY ’23, we guided close to INR2,200 crore revenue. So, now till now for nine months, we have done close to INR1,200-odd crores. So, we need INR1,000-odd crores in the fourth quarter. So, how do we see the fourth quarter and for full year how much now lower number are we looking at? And continuing to that for a couple of years, we were looking at 25% kind of a growth. So, will the lower execution for this year will be compensated in FY ’24, by having a much higher revenue growth in FY ’24?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Shravan, you’re absolutely right, the total revenue which everybody expected and even I expected is little bit less than what we targeted and what we envisioned throughout the year. But the point here was little bit for the UP projects, now we are at the stage of finishing an MEP and each and everything else to be approved through PMC and again through the government. So, things are getting little bit late at the approval level. But yes, you’re absolutely right that we are falling short by about INR100 crores in this quarter and maybe in the current next quarter.

But probably going ahead from here, now we’ve already started booking some of the revenues of MEP. Projects are in line except the hospital buildings, which are little bit late, which will be completed next year. But major other projects are going on track. And now we are also tracking a little bit more closely. So, I feel that we may fall short of about INR100 crores overall, but let us still believe that probably we will be able to reach to INR2,100 crores by this year. This year — this quarter, actually what I expected was about INR600 crores and we have landed INR500 crores, so I’m still saying that maybe that we may fall short of INR100 crores.

Talking about next year revenue and compensating on what we have been doing today, is yes, you are true that probably that can be considered that even if we fall short of INR100 crores, and from INR2,200 crores going for 20% or 25% growth, we should be able to in the position to go for INR2,700 crores. That’s something which we will be tracking after March, but probably you are right, that our targets for next year should be somewhere in the range of INR2,600 crores, INR2,700 crores, so that this year’s revenue, which we have made fall short of INR100 crores can be compensated.

Operator

Mr. Shah?

Shravan Shah — Dolat Capital — Analyst

Yeah. Thank you, sir. Thank you and hope we should be able to compensate whatever the loss we have done on the execution front going forward. So now, coming on the inflow front. So definitely, we have already done close to INR3,300 crores. And so what’s the status of INR350 crores L1 for the Gujarat Tourism project and what more — how much more orders we can still get by the end of March? And how much now can we look at for FY ’24, INR4,000 crore kind of order inflow to sustain that 25% growth? So, that’s the number we are looking at.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, you are right that, that INR350 crores order of Government of Gujarat is still [Technical Issues] and we are waiting for the approval in the process with [Technical Issues], so it has already moved for department approval.

Operator

Sorry, sir. The last line was not audible. Sorry, to interrupt. Can you repeat again.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

That order is already been through from the department and now it is in the process with the government. So probably, we are expecting that order to come soon. So, expecting on that order and further expectation of one or two orders which we have already bidded and with one of the clients we are working, you may expect further INR200 crores, INR250 crores order. So probably, we will be in the range of near to INR3,900 crores or INR4,000 crores. But you’re saying is, do we expect the same next year? Again, I would like to say, it’s an opportunity which you get.

This year also we were expecting only INR2,500 crores and it was luck by chance that we get an opportunity to do large project like Surat Municipal Corporation and we get that opportunity through. So, things are moving economically faster. Projects from government and the private books are coming very well and all the capex from institutions like Reliance and ArcelorMittal are still in line. So probably, we’ll be having a good order inflow next year also. But requirement from our side, even if we do target for next year, INR2,600 crores, requirement for a 25% growth will be somewhere in the range of INR3,000 crores. If we reach to INR4,000 crores, it will be better luck for next year also.

Shravan Shah — Dolat Capital — Analyst

Okay, okay. Lastly, so on the margin front, the guidance remains the same, 12% to 13% that, that should not be issue in terms of the margin front, EBITDA margin?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Yes. [Technical Issues] I always say 11% to 13% and you always say 12% to 14%. See, this is — again, I would like to say that EBITDA for a construction company to justify each and every project may vary from 1% to 2%. But yes, the confidence with which we tender and confidence with which we execute the project, I think we should remain in that range only.

Shravan Shah — Dolat Capital — Analyst

Okay. Lastly, Hetal ma’am, I need the data points on the balance sheet front, the absolute number on inventory trade receivable and trade payable.

Hetal Patel — Chief Financial Officer

Yeah. Trade receivables are ending at around INR400 crores and inventory is INR114 crores around, which includes INR40 crores of WIP, which are for new sites.

Shravan Shah — Dolat Capital — Analyst

And trade payables?

Hetal Patel — Chief Financial Officer

Yeah, that is around INR300 crores.

Shravan Shah — Dolat Capital — Analyst

So, this INR400 crores trade receivable you mentioned last September it was INR280-odd crores. So, does this including the retention money you are saying or the…

Hetal Patel — Chief Financial Officer

No.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

That is because of the pace of the construction has gone a little bit ahead higher than the last quarter. So, the revenue which we booked in the last month of December, that outstanding is adding on to that total of INR280 crores, which was there in September. So, that’s the reason not [Technical Issues].

Hetal Patel — Chief Financial Officer

And further to clarify, now, if you see, whatever outstanding was there as on 31st December, we have already collected around INR130 crores from those outstanding. Major execution was in October and December months. So, that amount we have received till now, around INR150 crores.

Shravan Shah — Dolat Capital — Analyst

Okay. So on a yearly basis, the number should not be — the debtor days should not be more than 60 days though? That’s a normal rate that we have. So, though it has increased as on December but you mentioned, we have received in January?

Hetal Patel — Chief Financial Officer

Yeah, Right.

Shravan Shah — Dolat Capital — Analyst

Okay, okay. Thank you and all the best.

Hetal Patel — Chief Financial Officer

Thank you.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.

Nikhil Kanodia — HDFC Securities — Analyst

Good evening, sir. Am I audible?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Nikhil Kanodia — HDFC Securities — Analyst

Sir, firstly, congratulations on the very strong order inflow for this nine-month FY ’23. My first question was on the execution front, which you have already answered. So, my next question would be on the order book. So, what is the order book under execution as on date?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

The order?

Nikhil Kanodia — HDFC Securities — Analyst

The order book under execution.

Hetal Patel — Chief Financial Officer

It is INR5,075 crores.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

From here on, it is INR5,075 crores.

Nikhil Kanodia — HDFC Securities — Analyst

Okay. And what is the share of Bhiwandi and Pandharpur projects in the order book?

Hetal Patel — Chief Financial Officer

Yes. That is around INR150 crores — sorry, INR850 crores.

Nikhil Kanodia — HDFC Securities — Analyst

So, other than that INR850 crores, rest every project would be under execution, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah, yeah. It is not INR850 crores, it is INR750 crores. It is INR700 crores only, not even INR750 crores, it is INR700 crores the execution projects are on track. You’re right.

Nikhil Kanodia — HDFC Securities — Analyst

Okay. And sir, do we have any update on the hearing on this AWS Bhiwandi project?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Any hearing on?

Nikhil Kanodia — HDFC Securities — Analyst

Hello. Am I audible, sir?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Any…

Nikhil Kanodia — HDFC Securities — Analyst

Sir, any update on the the hearing on the AWS project?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah, yeah, yeah, that process has gone a little bit into the end. Now we have accepted the person’s name which we have initiated as an arbitrator from our side. So probably, next hearing, the arbitration should be over at both the arbitrator should be appointed. That’s when they are expected.

Nikhil Kanodia — HDFC Securities — Analyst

Okay. And sir, what is your bid pipeline as on date?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Bid pipeline, as already indicated INR4,500 crores.

Nikhil Kanodia — HDFC Securities — Analyst

Sir, can you please repeat that?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

INR4,500 crores.

Nikhil Kanodia — HDFC Securities — Analyst

Okay, INR4,500 crores. And of this, the private orders would constitute around?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Which?

Nikhil Kanodia — HDFC Securities — Analyst

Of this INR4,500 crores that you are saying, the private orders would be?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Private orders would be 60%.

Nikhil Kanodia — HDFC Securities — Analyst

And majority of this would be from the state of Gujarat?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Only except two projects which is [Technical Issues], the last project we said about the — for the gem and jewelry and the second project is IT park in Chennai. There is one more project of Central Vista. It is not 60%, it is about 70% is out of Gujarat, so INR1,200 crores from Mumbai, INR1,200 crores from NCR, Delhi, and INR500 crores again from Delhi.

Nikhil Kanodia — HDFC Securities — Analyst

Okay. So INR1,200 crores from Mumbai, INR1,700 from NCR and the balance would be from Gujarat itself, right, which is around 70%?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Yeah.

Nikhil Kanodia — HDFC Securities — Analyst

Okay. Okay. Those were my questions and thank you and all the best, sir.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Alok Deora from Motilal Oswal. Please go ahead.

Alok Deora — Motilal Oswal — Analyst

Hi, Sir. Congratulations on good numbers.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Alok Deora — Motilal Oswal — Analyst

Sir, just wanted to understand, we have comfortably surpassed the order inflow, which we were targeting. So, how much order — further order inflows we are looking at, because we have a full kind of a three-month busy period for order inflows coming up? So, just your thoughts on that as in if there’s an opportunity and if we are getting, say, cumulative orders of INR1,500 crores, INR2,000 crores further, so are we open to that? Or how is your thought process, sir?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, actually, we have reached to INR3,300 crores order inflow for this year. And as I already said, that one order is in the process of approval, that is INR350 crore from the state of Gujarat. And the second order is what we have bidded, we’re expecting that we should get that opportunity from private sector. But probably I’m trying to — I feel like that we should be able to reach to about INR3,800 crores to INR4,000 crores in this year.

And about the opportunities which you are saying, yes, we are bidding for some of the projects. But these projects or most projects are in process, which takes minimum two to three months like gem and jewelry park is on since last six months, Central Vista MP Chamber and Office, it is only at the PQ stage, so probably, that may not come before March. So presently, the bidding pipe — bid pipeline, what we have seen, will may get converted into final order or maybe as an opportunity to bid for a final order will be somewhere in the month of April-March.

Alok Deora — Motilal Oswal — Analyst

Sure. And this INR350 crores order, which you highlighted in the previous question as well, this we have already received or, I mean, we’ve got some indication or?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no. That’s the government tender where we stood lowest and it was during the just recently elections that came up in Gujarat. So, the process from government has already been done but just after the election and just after the forming of new government, that some order has gone in the approval stage at the government stage. But we stood lowest so we declared it.

Alok Deora — Motilal Oswal — Analyst

Okay. So, we’re already L1 in that?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. Yeah. Yeah.

Alok Deora — Motilal Oswal — Analyst

Okay. Okay. And just sir, so you mentioned that there is some execution, which was expected this quarter and fourth quarter, which would likely now happen in FY ’24. So, what’s the growth we are looking at now in FY ’24 over FY ’23? Or just some guidance on the revenue?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

The type of project which we have received from March to till now that all projects which are new for this year has already been started and the inclusion of new staff, which has already been reflected to our operating expenses also. So, we would like to expect the same growth of 20% to 25% here also.

Alok Deora — Motilal Oswal — Analyst

Sure.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Even if we get a reduction of INR100 crores this year, we would expect the same.

Alok Deora — Motilal Oswal — Analyst

Got it. Just last question, sir. How is the — this precast execution happening? And any expansion plans there or any progress there on that?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, we are now getting the inquiries from the market. These inquiries are on with the clients and decisions are all still on. Rest of the things which we — the order which we’ve already bid, L&T and [Technical Issues] for which we are making warehousing, those projects are on, and certain production facilities for L&T bullet train materials, which we have to supply on dock side is getting ready also. So, I see a better future that inquiry should come and as and when we execute one or two buildings, then we should get good inquiry on that part also.

Alok Deora — Motilal Oswal — Analyst

Sure, sir. I think that’s all from my side. Thank you and all the best.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Nikhil Abhyankar from DAM Capital. Please go ahead.

Nikhil Abhyankar — DAM Capital — Analyst

Thanks for the opportunity, sir. You can hear me?

Operator

Yes, but can you use your handset, please?

Nikhil Abhyankar — DAM Capital — Analyst

Yes, I’m using the handset.

Operator

Okay. Please go ahead.

Nikhil Abhyankar — DAM Capital — Analyst

Sure. Sir, just to clarify, you have given a revenue guidance of around 21 billion for FY ’23 and around 26 billion to 27 billion for FY ’24, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Nikhil Abhyankar — DAM Capital — Analyst

Okay. Okay. And sir, also amongst working capital, can you also specify the unbilled revenue, the mobilization advance and retention money please?

Hetal Patel — Chief Financial Officer

Sorry, your voice is not clear. Can you please repeat what exactly you require?

Nikhil Abhyankar — DAM Capital — Analyst

Can you give us the unbilled revenue, the retention money and mobilization advance?

Hetal Patel — Chief Financial Officer

Yeah. I have already mentioned, but we’ll repeat it again. See net unbilled revenue is INR150 crores and mobilization advance is INR169 crores and retention money, non-current and current, I’ll say. Non-current is INR101 crores and current retention money is INR33 crores.

Nikhil Abhyankar — DAM Capital — Analyst

INR33 crores, okay. And sir, you earlier mentioned — I just wanted a clarification, you mentioned the execution of the Surat Municipal Project of three years, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah, 36 months.

Nikhil Abhyankar — DAM Capital — Analyst

33 months. So, what can be the run rate of revenue accrual over, say, FY ’24 for this project?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

We should expect because the first part we’ll be doing the basement and the foundation, so we should expect about INR300 crores to INR350 crores first year as we will roll into structural part. Later two years when we will be there — where we will be partly structure and partly finishing and [Indecipherable]. So, first year, you should expect about INR300 crores to INR350 crores minimum from that project.

Nikhil Abhyankar — DAM Capital — Analyst

INR300 crores to INR350 crores, then equal for the remaining two years?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Nikhil Abhyankar — DAM Capital — Analyst

Okay.

Operator

Does that answer your question?

Nikhil Abhyankar — DAM Capital — Analyst

Yes, sir. That’s all from my side. Thanks.

Operator

Thank you. We have our next question from the line of Jiten Rushi from Axis Capital. Please go ahead.

Jiten Rushi — Axis Capital — Analyst

Yeah. Good evening, sir. Thank you for taking my question. Sir, my first question is on the revenue guidance. So, you have given a guidance of INR2,100 crores. So sir, should we assume a run rate — a strong run rate in Q4? So, what kind of contribution you can expect from UP project? Because, as you said, INR900 crores revenue in Q4 to achieve a target of INR2,100 crores and UP projects are still more than INR1,000 crores left?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Probably, combine both civil and MEP and other execution, which we have to do in these UP projects, now we are targeting about INR100 crores each month from UP for all the projects.

Jiten Rushi — Axis Capital — Analyst

Okay. So, in all seven projects, combined you will receive — you are targeting INR300 crores revenue in Q4?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, we are planning to execute that and that’s what our target is.

Jiten Rushi — Axis Capital — Analyst

So, balance INR600 crores will be from your existing ongoing. So basically, sir, what I can understand is out of INR5,075 crores order book, your executable order backlog could be around INR3,500 crores because INR1,350 [Phonetic] crores is Surat and then some projects which you have won in Q2 might not be contributing big way in Q3 — Q4. So, if you can assume INR4,000 crore is executable, of which around INR1,000 crores is from this project UP, so balance that you’re expecting INR600 crores from other projects, right, sir?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Jiten Rushi — Axis Capital — Analyst

So, this would be the highest execution we’ll see in the history of the company for the quarter?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes, it is always the highest quarter each year. If you compare with quarter one, two, three, and the fourth quarter is always the highest because that’s the peak period where construction companies can execute the projects very smoothly without any interference from the uncertainties of labor and all that. So, that has been the history. So, let us — we expect the same this year also.

Jiten Rushi — Axis Capital — Analyst

No, I was just want to view that you had guided for INR2,000 crores in Q3 in terms of revenue. So, I think even after not meeting the target for Q3, you are targeting a higher — you’re giving a higher guidance for FY ’23. That is what my concern was.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes. No, we have already given a guidance of about INR600 crores in quarter three, and that’s what we are expecting in next week or next quarter only. But here we’re falling by INR100 crores, so we are trying to see that, overall, we may get a reduction of INR100 crores.

Jiten Rushi — Axis Capital — Analyst

Okay. Okay. Okay. And sir, on the Surat project, it is — you have to build two towers of 27 floors, right, sir?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Jiten Rushi — Axis Capital — Analyst

Okay. Okay. And sir, if you — Hetal ma’am, can you give me the cash and bank balance and what is the precast revenue in Q3 and precast outstanding order backlog?

Hetal Patel — Chief Financial Officer

See, precast backlog will not be separately mentioned because now even for our current projects also, we are manufacturing some of the precast elements. But yeah, you can say our earlier order of NNP has been almost executed and the balance of that was around INR60 crores. And the balance, we can say, INR153 crores, the new orders, which will be under execution.

Jiten Rushi — Axis Capital — Analyst

So, understood. So, you said INR60 crore revenue is booked in Q3 from precast and INR153 crores is the order backlog?

Hetal Patel — Chief Financial Officer

Cumulatively. You can say cumulatively, but see, it will be like now a backward integration for us because we will not be segregating the revenue for our existing sites.

Jiten Rushi — Axis Capital — Analyst

Okay. So, INR60 crores cumulative revenue booked so far in precast in nine months? So basically, Q3 is low because in first quarter, you will get INR30 crores and INR25 crores in Q2. So Q3, there has been not much revenue booking from precast, right?

Hetal Patel — Chief Financial Officer

See, that we cannot say exactly because, as I said, we need to send the precast elements to our other projects also.

Jiten Rushi — Axis Capital — Analyst

Fine. Fine. So, right now…

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Some of the things of civil is converted into precast. So, the precast plant is being utilized as a company’s asset, not as an individual call center.

Jiten Rushi — Axis Capital — Analyst

For a particular client, okay. So sir, what kind of contribution we can expect from precast from FY ’24 onwards? As you said, we are integrating with our ongoing projects. So what kind of benefit we will get now in terms of execution, timeline, the margin? Or if — and any bonus you can earn because of this precast advantage we have? Any thought on this from next year onwards?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Usually in building sector, there is no [Technical Issues].

Jiten Rushi — Axis Capital — Analyst

Sir, your voice is not audible, sir.

Operator

Sorry to interrupt, sir, you’re not clear. Sir, can you please repeat?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

As far as bonus is concerned…

Operator

I’m sorry, sir, your voice is still not clear.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So, then — I’m hearing you very clearly. I think my…

Jiten Rushi — Axis Capital — Analyst

No, sir, now it is clear.

Operator

Clear now sir.

Jiten Rushi — Axis Capital — Analyst

Yeah, yeah.

Operator

Please go ahead.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

So, bonus clause are never there in the private sector, the government sector in the building sector. But yes, the execution speed may give temptation to the client to give us a better margin because that way they are saving some time on the project site. So that can be a reason to add on more profits in future.

Jiten Rushi — Axis Capital — Analyst

Because, if you said — if you use precast, your order value will go up because of that, obviously saving on time is an advantage to the client.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Jiten Rushi — Axis Capital — Analyst

Okay. And sir, cash — ma’am, cash in bank balance as on December, is it…

Hetal Patel — Chief Financial Officer

Yes. I have already mentioned the amount of fixed deposits, so that contributes to our cash and bank balance, so it’s INR316 crores.

Jiten Rushi — Axis Capital — Analyst

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

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Sameer Shah [Phonetic] from Sameeksha Capital. Please go ahead.

Sameer Shah — Sameeksha Capital — Analyst

Hello. Am I audible?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yes.

Operator

Please go ahead.

Sameer Shah — Sameeksha Capital — Analyst

Yes. Thank you for giving me the opportunity. Actually, I wanted to know about your capex plan. Like what will be the capex going forward as a percentage of sales, if you can say?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, capex, if you see throughout, I think, every year, it’ll be range between 3% to 4%, so probably that will be the standard criteria on which the work is going on and the [Technical Issues] which we have been growing at 20% to 25%. That will be still in the range of 3% to 4%, provided some extra orders also come up suddenly, then that can be an impact of 1%. Otherwise, it should be within the range of 3% to 4% of revenue.

Sameer Shah — Sameeksha Capital — Analyst

Okay. Okay. Got it. And sir, for the Surat high-rise building, what are the margins that you are expecting in that?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

It is based on the same guideline what we have been quoting till now. So, that will be acquiring the same margin.

Sameer Shah — Sameeksha Capital — Analyst

Okay, Okay.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Sameer Shah — Sameeksha Capital — Analyst

Okay. Thank you.

Operator

Thank you. We have our next question from the line of Uttam Kumar Srimal from Axis Securities. Please go ahead.

Uttam Kumar Srimal — Axis Securities — Analyst

Yeah. Thanks for the opportunity, sir. And congratulations on good order inflow. My question is basically related to your debt position currently. So, this year — this quarter, our interest cost has gone up. So, this run rate will continue in the fourth quarter also?

Hetal Patel — Chief Financial Officer

See, currently, what we have utilized is like our working capital is INR140 crores. So, because of that, that has increased. But it may not continue. This is — like currently, UP project, we need to pay advance to some of the contractors and all. So, when it realizes into sales means it will be reimbursed, so major MEP items. So, that will be reimbursed and will not be continuing with the same level of utilization.

Uttam Kumar Srimal — Axis Securities — Analyst

Okay. Madam, your long-term debt has also increased compared to last year?

Hetal Patel — Chief Financial Officer

Yes, around INR5 crores or — we have taken the advance — loans from banks.

Uttam Kumar Srimal — Axis Securities — Analyst

Okay. Okay. So currently, it is standing around INR15 crores?

Hetal Patel — Chief Financial Officer

Yes, right. So, if you compare with last year, yes, it will be — it has increased, but compared to September, additional INR5 crores we have done.

Uttam Kumar Srimal — Axis Securities — Analyst

Okay. Okay, ma’am. That’s all from my side and thanks.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. We have our next question from the line of Prem Khurana from Anand Rathi. Please go ahead.

Prem Khurana — Anand Rathi — Analyst

Thank you for taking my question, sir. And congratulations on strong order inflows during the year. Sir, just want to understand on the cash flow part a little better. So, when I look at Q3 because we saw a ramp-up in execution. I mean, at UP project, we saw the debt go up and even the FD balance seems to have come off on a sequential basis. Given the fact that in Q4, we are targeting a significant jump in revenues, right, from INR500-odd crores, we plan to go to almost around INR900 crores. So, is it fair to assume that the debt would go up even further in Q4? Or you think the cash flow from operations…

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah. You’re right. But as Hetal has clarified that about INR140 crores has been given to subcontractors for MEP and most of the MEP materials has always carry an advance before placing the order to the suppliers. So, that’s the only reason that debt has gone up. Otherwise, probably, this should not be a fact every time. And for this quarter also, cash flow is disrupted because some of the overhead expenses has gone little bit high compared to last quarter, about INR6 crores to INR7 crores. That is impacting our net profit clearly. And that is because we start the execution from March onwards to cope up with the new requirements of the project, which we have started after March. And that’s the reason that cash flow is little bit disrupted.

Prem Khurana — Anand Rathi — Analyst

Sure. And just one small clarification. So, the INR3,300-odd crores with the orders that we have managed during the year, including SMC or Surat Municipal Corporation Project, how many of these orders are — I mean, the orders wherein we are yet to avail mobilization advances? How much will be the quantum that you would be in a position to kind of avail whenever you decide to kind of go and draw these mobilization advances?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Your voice is breaking and the question was not clear. Can you repeat it?

Prem Khurana — Anand Rathi — Analyst

So, I want to understand the new projects that have come to you during the year, right, I mean, INR3,300-odd crores including Surat Municipal Corporation, right? Most of these would carry mobilization advances. Am I right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Yeah.

Prem Khurana — Anand Rathi — Analyst

How much of these mobilization would have been kind of drawn till this time? And how much more would you be able to draw, I mean, if you decide to draw these mobilization advances?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think Hetal has already given the figure of INR160 crores of mobilization advance, it’s still outstanding on the goods which we have got from the different, different clients.

Prem Khurana — Anand Rathi — Analyst

No, no, no. I want to understand the new projects, say, how much would you be able to draw, I mean, essentially, wherein — so Surat Municipal Corporation would have some number, right? I mean you would be able to use that money whenever you decide to use it.

Hetal Patel — Chief Financial Officer

See, from SMC, that mobilization advance is yet to be received. So, that effect will come in this current quarter.

Prem Khurana — Anand Rathi — Analyst

Sure. So, only SMC is wherein we are yet to draw, otherwise, all the…

Hetal Patel — Chief Financial Officer

Yes. Okay. Sure. Thanks. Thank you. That’s it from my side and all the very best for future.

Operator

Thank you. We have our next question from the line of Vishal Periwal from IDBI Capital. Please go ahead.

Vishal Periwal — IDBI Capital — Analyst

Yes, sir. Thanks for the opportunity. Just one clarification. The order book breakup that we provide between industrial and institutional, so the government-related orders, they are in two categories, right, government and government-residential, and rest are private? Is that fair understanding?

Hetal Patel — Chief Financial Officer

Yeah, there are two categories.

Vishal Periwal — IDBI Capital — Analyst

Yeah. So, the government orders are only in government and then government-residential, rest are private, right?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Your voice is breaking.

Hetal Patel — Chief Financial Officer

Your voice is not clear.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Your voice is breaking, but I think you’re asking a question that the government projects are distributed in two heads, that is one is government institution and one is government-residential, I think that’s the right thing that you are saying. Yes, it is divided into two. Government-residential means when we get an order related to the EWS and all the such type of works which comes out from the government side.

Vishal Periwal — IDBI Capital — Analyst

Okay. So, I think then the further breakup is like the private side, which is institutional, in particular, it has seen a jump in the order book. So, any particular segment in institutional that is driving it or overall the private capex that you talked in the initial commentary. So, can you give little color like which segment is driving this private capex?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No. The overall projects which we get from other private corporates and their internal capex, only — sometime it is industry, sometimes it is more related to their office infrastructure. But mostly, it is — from the private sector, it comes as in [Technical Issues] all these residential facility has to be created for any group, such types of projects comes under private sector.

Vishal Periwal — IDBI Capital — Analyst

Okay. So probably, it’s a mix of things. Won’t be fair to pinpoint one particular segment for the…

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no, no. It will be a mix of anything which is related to building.

Vishal Periwal — IDBI Capital — Analyst

Okay, okay. Sure, sir. That’s all from my side. I’ll come back in the queue. Thank you.

Operator

Thank you. We have our next question from the line of B. Vijay Kumar from Spark Capital. Please go ahead.

B. Vijay Kumar — Spark Capital — Analyst

Good evening, sir.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Good evening.

B. Vijay Kumar — Spark Capital — Analyst

Yes. I logged in little late. Just wanted to understand for the Surat Municipal Corporation Project, do we have land and funding in place?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Can you repeat the question? Again, the voice is…

Operator

Sir, I would request you to disconnect. I’ll reconnect you. The voice is very clear for me. Mr. Vijay Kumar, please stay connected. I’ll reconnect the management team. Sir, kindly disconnect. Thank you. Ladies and gentlemen, I request you all to stay connected. We have reconnected the management team.

Mr. Vijay Kumar, can you repeat your question again, please?

B. Vijay Kumar — Spark Capital — Analyst

Just Surat Municipal Project and the funding, is it in place?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

You are asking about the funds has been placed — in place or not? Hello?

B. Vijay Kumar — Spark Capital — Analyst

[Technical Issues] plan, are they in place? And when do we start? What is the time line for completion of the project?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, the project has been already announced. The land is very clear because it was previously a jail, now the jail has been shifted from that location and it is grounded also. So, project approval is clear. Finance is still — we are not having any clarity from the government side, but which we basically can bring the marquee project in the first initiation for any project from a government going for 27-storey as a vertical tower for government offices, I think either the state government and the municipal corporation, both will be taking initiatives to complete this project.

B. Vijay Kumar — Spark Capital — Analyst

Okay. What about the approvals or land acquisition? Is that all in place?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think I said it was a jail and the jail has been vacated, it is a total ground at site. And as they have said us that the approvals are also on track because this project was awarded since last six months in terms of paperwork and tendering and other processes. So as far as these two processes, I think there should not be any hurdle in terms of approval and land as of now.

B. Vijay Kumar — Spark Capital — Analyst

So when do we expect this to start? And is it a two-year completion period?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, it is three years. We have declared 36 months, we have to carry out INR1,344 crores and it should start maybe by maximum by 1, 1.5 month.

B. Vijay Kumar — Spark Capital — Analyst

Okay, sir. Those were my questions, sir. All the best.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you. Thank you.

Operator

Thank you. We have our next question from the line of Nikhil Kanodia from HDFC Securities. Please go ahead.

Nikhil Kanodia — HDFC Securities — Analyst

Thank you for the follow-up opportunity. Hetal ma’am, just wanted to confirm the debt numbers. So you mentioned that INR51 crores is the long-term debt and INR140 crores is the short-term debt, right?

Hetal Patel — Chief Financial Officer

Yeah, right.

Nikhil Kanodia — HDFC Securities — Analyst

And what is the cash bank balance that you would be having?

Hetal Patel — Chief Financial Officer

Cash and bank balance is around INR5 crores, but our FD will be INR316 crores, as I’ve already mentioned.

Nikhil Kanodia — HDFC Securities — Analyst

INR316 crores, right?

Hetal Patel — Chief Financial Officer

Yeah, 3-1-6.

Nikhil Kanodia — HDFC Securities — Analyst

Okay, ma’am. Thank you.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I think we should now conclude on the call because the time is over and I have to also leave at 5 o’clock. So, if you want anyone to like take the last question, it is fine. Otherwise, I will leave and you can continue on any questions related to finance.

Operator

Should we take the last question, sir?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No problem.

Operator

Yeah. We’ll take a question from Mr. Akshay Kothari from Envision Capital. Please go ahead.

Akshay Kothari — Envision Capital — Analyst

Thanks for the opportunity, sir. Sir, I wanted to know the reason for slower execution. One of them could be Gujarat election?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

No, no, no. It has nothing to do with Gujarat election. Slower execution is majorly on UP side, which we are expecting better than we have done. And that is mostly because of the — finishing stage, you have to get each and every material approved and at MEP stage, each and every plan has to be approved and that is approval comes from three sides, architect, P&C and the client. So, there it took a little bit of time and that’s the only reason for the slower execution.

Akshay Kothari — Envision Capital — Analyst

Okay. Sir, there are some articles and talks about bigger players like Tata, Adani, Reliance and like of other bigger EPC players getting aggressive on the EPC front as well, which they were not earlier. So, what are your views regarding it?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

See, I don’t have knowledge about Adani getting [Technical Issues], they are more into infrastructure. Tata, on the building side, they’re maybe having 10% to 20% of their order book [Technical Issues]. So EPC side, presently most of the contracts or largely the contractor, which we are bidding since last three, four months, we see only the L&T, Shapoorji and C3 and sometimes Tata is on the building side.

Akshay Kothari — Envision Capital — Analyst

Okay. Sir, I have last question. Sir, generally, what is the trend? So, budget is due in next 400 — sorry, elections are due in next 400 days. So, there is very much likely that it would be a populist budget. So, what is general trend one year before elections? Do we see a slowdown in some order inflow or the order inflow actually increases? What are the trends as per your experience?

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

I don’t understand the trend about election and election-related issues in terms of execution of order or gearing of order. But the situation what we see since last six months, the economy is growing so fast on the private side as well as the government side and the government order which has already been announced, even if that comes to in execution in next two years, I think there is huge entry of works for contracting firms to do for next three years.

Akshay Kothari — Envision Capital — Analyst

Okay. Sure, sir. That’s it from my side. Thanks.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Thank you.

Operator

Thank you. I now hand over the call to the management team for closing comments. Over to you, sir.

Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer

Once again, thank you, everyone, for joining us and for your continued support and trust on us. We hope that we have been able to address most of your queries. In case of further queries, you may reach out to our Investor Relations advisor, E&Y, and they will connect with you offline.

Thank you, Amar, for hosting on our call. Thank you again. God bless you.

Hetal Patel — Chief Financial Officer

Thank you, everyone.

Operator

[Operator Closing Remarks]