FY26 ended with only INR1,300cr new orders vs INR10,000cr target.

What would be our HAM and solar receivables? Last time you indicated that solar receivables are quite dated. So have we received them?

So total SPV receivables into debtor is around INR255 crores in solar and INR557 in HAM. And this contract asset is INR235 crores in solar and HAM is INR529 crores.

Sir, we saw a sharp increase in the debt levels in the second quarter. So any reason for that?

So basically, there has been 3 significant areas where we have invested this debt -- increased debt. One is the advances to our vendors, that is around INR150 crores, we did into that because of procuring few of the core kind of material, which are required for debts and this thing. So mobilization advance also has been there, where INR250 crores of mobilization advance is there. So there is a significant decrease into that because in newer projects, we could not receive any mobilization advance till date. And the payables also has decreased where the retention has been paid because of the many other projects, which we have recently completed where the vendor payment of the retention has been paid. So this I have explained into this remarks that the total around INR490 crores of debt is still to be received from the HAM bank's disbursement. So this is, again, adding to this particular increase in debt, which was again to quarter 1 as well.

So once that comes, the debt should go down?

Yes. Debt, we are expecting in quarter 3 and quarter 4, significant decrease is likely to be there, and we will be roughly around some normalcy as we were in earlier quarters.

Sir, lastly, on the margin side, we have seen some softness in the last 2 to 3 quarters. So were there any one-offs in this quarter because margins were 12.7%? And how do you see it going forward?

The margins were on track only. There are exceptionally a few of the projects, say, especially Ganga, where we have taken a hit because of the change in law, there is likely that we would be taking that to the arbitration. We are going to seek this kind of an opportunity where it would be paid. It is a payable kind of a thing. But outrightly, now the client is not agreeing to that. So there is one number which we discounted immediately into our quarter's number.

What was that amount?

This is -- in the first quarter, it was around INR40 crores, and in the second quarter, it is around INR35 crores.

So going forward, there is any other expectation or it is now over? Or are there further...

All projects are very -- running very smoothly and perfectly within the right margins as we envisaged. So it's only one of the projects which we have taken at discount because we don't want to keep those numbers where the margins are likely, definitely there as per the contract conditions, but it may take a few quarters to realize that.

So now that is completed the provision or it can come further in Q3 as well?

No, no. We are all done into these first quarter 1 and quarter 2.

A couple of questions. So first, broader guidance on the top line front. So now given the muted relatively in the 1H to achieve a INR7,000 crores, we need a 19% kind of a growth rate in the second half. So how do we now see?

The growth in first half of this year is almost as per the plans only, we are around INR2,800 crores, around a 10% to 11% growth. So for the balance portion, definitely with the rains subsided and the appointed date of this Varanasi-Kolkata Package 13 received, Ayodhya is likely to be there within a few days, and Package 10 would be followed in next month only. So with that, we are estimating that a significant number would be in quarter 3 and quarter 4. So definitely, we are not very much sure that we would be touching INR7,000, but something around INR6,500 crores to INR7,000 would be our number which by end of this year, we will be able to -- comfortably, we will be able to reach.

Okay. And for next year also, earlier, we were looking at INR8,000. So given the -- if we can get a INR10,000 crores, INR11,000 crores order inflow. So INR8,000 crores is doable in FY '27?

With the balance order of about INR14,000 crores, if you do around INR4,000 crores in the balance, even it's around INR4,000 crores in the balance part of the year. So we would be left with INR9,000 crores in the year, and again, with the likely addition of the new order, where now the orders from -- even from the government or from any private line. So those are the orders which we do not expect much of the delay in the appointed date. So whenever the orders would be placed, likely within a few months, the appointed date would be in, say, there because of the land availability and everything has been improving a lot. So with that, we are expecting that we will be touching around INR7,800 crores to INR8,000 crores in the coming year at about 15% growth as we have earlier estimated.

Just one clarification again on the margin front. I think last quarter also, you alluded that most of the Ganga Expressway-related onetime provision has been taken in the last quarter only. But in this quarter also, we have seen INR35 crores that you have mentioned. I'm not sure, even if one includes that, I'm not sure whether it is going up to 13 -- 16-odd percent, which we used to be a normal track record on the margin side. So can you please help us.

That would be only one project, which you had taken this hit, not because the client is not eager to pass on this claim. There is change in law and there is one COS. So there is an interchange which has been constructed as a variation, which we have not considered as a revenue because the client may take some time for approving that into -- as a variation claim. So in NHAI project or this kind of a project, there are 2 different things, which are -- because the client always consider anything, which yes, definitely qualifies your claim. So here, in this case, we are putting into our consideration that we may or may not qualify it immediately. So it is a matter of time. Definitely, these are all the numbers which we have taken as a provision or a margin has been discounted for the basis. Otherwise, it's not that the margins are not there. They were all there, and we were likely to see this number also coming in the future quarters within, I think, 3 to 4 quarters, this can be improved even.

But in second half, sir. Now, can we expect to get back to a normal 15%, 16% margin or it will remain in 12%, 13%.

See, all the projects, we have good margin. So we are expecting to come back to this normalcy.

Okay. And second, sir, on the order inflows. Now if I compute your order inflows for first half, it is coming to around INR1,500 only against the INR11,000 crores sort of the expectation in the beginning of the year. So what gives us the confidence that we will be able to -- in the remaining 4.5, 5 months, we'll be able to get to INR10,000 crores order inflow, sir?

So there are 2 big expectations, which we are expecting. One is definitely at NHAI. So nothing much has happened in first half and because of the land and the prequalification criteria and many more things with now everything because the approval of many projects, the bidding pipeline is very strong and they would be awarding in subsequent months. This is one area we believe. And the second is, as we have already successfully completed one of the projects of Adani, this is a Ganga Expressway project. So there also, the -- with a strong relationship with them, so we are expecting some private orders. So the rail, roads and the private orders, which we believe that within the future, say, the further 3 to 4 months balance, we would be able to secure at around INR10,000 crores of orders.

Okay. And sir, lastly, on the MSRDC project, so that INR4,000 crores book is not available to us for execution. So given that sort of a situation and most of the order inflow, which will happen, let's say, in the next, what, 1.5 quarters, then I don't know whether -- how much you will be able to execute. So are we being too optimistic about INR7,800 crores sort of a run rate next year in revenues given that very little order book will be left for execution for next year?

So if you see the total order, if you just take out this order from MSRDC, would be -- balance would be around INR4,000 crores -- INR5,000 crores. So those are the orders, out of which almost everything needs to be done in FY '27 just bearing, I think, more -- not more than INR400 crores, INR500 crores, which would be out of -- just going beyond FY '27. So this is one area, which we believe and that the orders which we are likely to secure now. So those are the projects which we are expecting, where the tentative -- the time which we actually -- it normally take is 1 to 2 years from the award date to the appointed date. So this is not going to happen in future orders because it's only a time when the orders, if you just can see the LOA to the appointed date, it would be 2 to 4 months maximum. So this gives us the opportunity and give us the confidence that we would be able to secure the orders as well as we would be able to deliver this much of amount of orders.

Just continuing on the previous question. Out of the INR14,000-odd crores, barring the Maharashtra order, are there any other projects where the appointed date is pending?

Yes, the appointed date as of now, which we -- one of the Ayodhya project, which we would be getting within a few days only. And the Jharkhand project, this is Varanasi-Kolkata Package #10 in the subsequent month only. So only the appointed date of this MSRDC project, that would be only balance.

So total, you are mentioning total 4 projects, including the Maharashtra one, where the AD is pending, is it?

Correct.

Okay. Fine, sir. And second, last thing is like in terms of financial closure of our -- the project where we have asset ownership, say BESS, even solar. So any update that can you provide, sir?

Solar financial closure already secured, 89% of the total project being sanctioned and 74% of the total disbursement happened. But still the big chunk of disbursement is yet to be done. But we have progressed almost 94%. So this is one bank which is SBI, which is they are just expecting because within the next 2 months, we need to complete the entire -- almost entire project. So within that timeline, balance of 11% would be sanction and disbursed, and the balance is already sanctioned would be disbursed in a few months from now. So apart from this financial closure, where the BESS -- one of the sanction, which we already have received from PNB Bank. And very recently, I think by a few of the other banks are also taking, participating in financial closure. So we are expecting for both the BESS projects, where the -- by November and December, we need to submit the financial closure.

When can we expect the execution in the BESS projects to start?

Execution, we already have started where the land is in there and engineering being done and advances to transformer and GIS and other systems already have been placed. So we have already started commence into both the projects of BESS.

Can we expect any meaningful revenue to be booked in this left of the financial year from BESS project?

Yes. Around, I think, roughly around INR150 crores to INR250-odd crores would be done within this year only.

And I missed one of your statement where you said that the MSRDC revenue for FY '27. So can you just repeat it once, sir?

So once this order where we are expecting the land is still not in say, around 75%, 70% as per the terms of LOA. So because of that, delay has happened. But again, once the land is in place, the appointed date and the LOA do not have much of a difference. So in that scenario, we believe that once this year is over, and by the time which you have an appointed date is there, so a significant amount of work would be done in MSRDC project in subsequent year, '27.

So can we expect it to come in this financial year or at the start of FY '27?

So we are expecting by this year-end only.

And can we expect around INR500 crores of revenue from this project in this year?

Within this year, no. We are not expecting any revenue in this year. We are not regulating anything.

And in FY '27?

FY '27, definitely, more than 50% would be done in FY '27, out of those total INR4,000 crores.

Sir, my question pertains to the current bidding pipeline for HAM EPC and also for metro projects. Last time you had given some idea of gaining some projects from metro also and also from battery storage services market. So if you can highlight how much we have bidded in HAM and EPC and for the metro -- railways and metro and for other projects also.

So till date, whatever we have bidded, it's around INR12,000 crores of total bids, which are already there, where the results are yet awaited. It's around INR7,000 crores in HAM and EPC projects into various sectors and around the BESS and the solar is around INR5,000 crores. And as far as bidding pipeline is concerned, if you see into INR65,000 crores of order where the -- almost the land acquisition, and this is at an advanced stage from NHAI, where the HAM and EPC are there. We are not considering any BOT project into this. And also, Ministry is also expecting to bid around project equivalent to INR70,000 crores within this year. So this is put together around INR1,35,000 crores, which we are considering for the year with the bid pipeline of NHAI and Ministry is there. So apart from that, already we -- when we had completed one of the big projects from Adani as a client, the Ganga. So we are expecting that they are also in discussions with a few of the projects already available with them to look at the EPC partner.

Okay. And sir, the margin would be same, what we are getting in the Ganga Expressway project if we do some projects with Adani here going forward? Or it's really lower than that?

We are expecting this on the similar terms, we would be taking on the call on the similar terms. So roughly the same margin as we did in Ganga.

And sir, last one, what will be the time line for the asset monetization that we have already done with this new?

So in all 5 projects, we have received the PCC and the NOC and other obligations, which we already have started. So we believe that the COD, as soon as we receive the COD as well as we -- as soon as we get the permission of NOC from the client, which will likely to take not more than 1 to 2 months maximum from now. So by January -- continuity in January or February, we would be doing 2 of the projects. And then March, all 3 balance projects would be done within the year only.

And sir, the entire enterprise value, all these transactions were INR3,584 crores, if I'm not wrong?

So the enterprise value is INR3,584 crores. Out of this INR2,200 crores is going to debt and INR1,384 crores is the total amount, which H.G. would be getting.

My first question is, sir, can you please explain the change in law, which has impacted our margin booking in the quarter? What it is related to?

The change in law, basically, the aggregate being taken or being procured from out of state, that is interstates projects park. So there's a significant fee increase into that in UP. So whatever aggregate is purchased from out of the state of UP, that duty is being charged. So with that, it qualifies as a change in law. And there is a royalty change which also qualifies as a change in law. So in any of the projects of UPEIDA, they never has paid this change in law, this is the first time. In NHAI, it is a normal trend, okay? So that's why they are considering this particular event, whereas it is since the first time and they may or may not consider it. So that's why we have taken that though legitimate claim is there. So we are already have taken the legal opinion. So if they deny that, then we will be taking this through arbitration.

But we are working for Adani, right? So Adani has to get this money and pass it on to us. Is that right understanding?

There are both things. So the contract clearly speaks that whatever we would be getting from the client, which is UPEIDA, the concession agreement, that only would be passed on to us.

Understood. My second question is on the NHAI pipeline. I think NHAI has given us a very strong visibility, is saying that they will come up with the INR3.6 trillion kind of order awarding in the fiscal. Are you seeing the signs of that happening? Or do you think it is -- the numbers will be much, much lower? And any outlook and any -- some color on the pipeline which exists as of now?

Definitely, the NHAI and ministry, they are all bullish around the strong pipeline because last 1.5 years, nothing much has happened, almost 2 years from. So again, the bidding is -- the pipeline is from, which -- what kind of a project is greenfield maximum. So into HAM, EPC as well as BOT, it's a mix of all 3. So taken together, it's around not less than INR6 lakh crores. But definitely, we cannot see everything would be done within this year. So we are expecting because of the land. So there is a mandate from the ministry as well as the finance that you should bid -- you should award those projects only where the 80% or 90% of the land as per the contract is available. So earlier, the practice was where the 30%, 50% of the land was available also was put to that awarding it. So now they are restricting the measures of it. And second is the quality of the DPR. So they are, again, considering this, okay, whatever DPR we should prepare, the DPR should not have many more variations, which are encountering the time loss as well as variations. So these are the 2 big things, which are impacting the bidding. Otherwise, the pipeline is very strong. So we are expecting, yes, definitely, it is taking time, but many projects, which they believe, and we are also expecting would be bidded within the financial year. And subsequently, I think there will be no delay in future years.

Sir, when can we expect the execution to improve in the Delhi railway station redevelopment?

New Delhi railway, the execution has already started. The improvement is likely -- definitely it's in the urban area. But whatever land and utility shifting, which was supposed to be there, so significant progress has been done. So we are expecting around, say, INR130 crores of the execution within this year only. So a significant portion would be done within this financial year when we have started the project now quite aggressively.

And can we expect to receive the monetization money by the end of this year?

Yes, of course. As we are progressing and the COD is expected, all 5 projects COD is expected in the subsequent 4, 5 months only. So this is a mandate which we have kept that once the COD as well as NOC on the client, these are the 2 things which are -- which are the prime requirement for the transaction to happen.

Okay. But sir, do you expect these orders, MSRDC orders to go for retendering in any case? Or you're fairly confident what have been the discussions with the awarding agencies on this?

Till date, there is no news as such, which is giving the sense, okay, these are going to be canceled and retendered. It's only a matter of time where the land acquisition is not, say, within as per the contract.

Understood, understood. And sir, my second question was your comment on foray into building residential building segment and also green hydrogen. If you can throw some light on it, what type of orders are we looking for? How are we qualified? Will we initially go through JV route? Which type of orders we'll be targeting in those areas?

As such, in the hydrogen because all the refineries, they have been mandated to deploy or just install this hydrogen plant, which require green power. So one of the projects which we already have bidded with the JV partner only in the Numaligarh Refinery, so that gives us that particular sense, if we are setting up the plant where the green hydrogen is one area where the revenue would be coming backed by the total operation expense, which is the green power. So the green power setup would be much more than the green hydrogen capex. So that, we are considering, which L&T is the only player with -- until date, they have taken 2 orders from Panipat and Goa. So in all the refineries, this is to be done. And also the government is looking into many other public sector undertakings where the mandate is given for setting up the plant. This is one area, which we have picked, one of the trusted partner, which we have taken into our -- which we do have the patent for setting up the plants and indigenous components, which are now the prime requirement for the bids. As far as this is concerned, see, apart from this, if you are looking at the opportunity which are into building, residential building or commercial building. So we are looking into this opportunity once we have completed in Kanpur projects. So mostly done, the total building part already done. So we do not require any quality, or say, a JV partner. So we are looking into this opportunity where the building construction can be taken up, whether in the government or the private.

Understood. And up to what sizes would we qualify in case of government orders there?

Not a big number. It would be initially at INR300 crores to INR500 crores.