Thank you, Sapnali. On behalf of HSBC Securities, I welcome everybody to Q4 and FY26 earnings conference call for G R Infraprojects Limited.

From the management, we are joined by Mr. Ajendra Kumar Agarwal, Managing Director, Mr.

Anand Rathi, CFO. I now hand over the call to the management for your opening remarks, followed by the Q&A session.

Over to you, sir.

Thank you, Aditya ji. Good afternoon, ladies and gentlemen, and a warm welcome to the Q4 financial year 26 earnings conference call of G R Infraprojects Limited.

Thank you for taking the time to join us today. I hope you and your families are keeping well.

I am joined on this call by Anand Rathi, CFO, and Ankit Maheshwari, Deputy CFO of the company. I will begin by sharing an overview of our operational performance during the quarter, along with our perspective on the infrastructure sector.

Thereafter, Ankit ji will take you through the financial performance in detail. Following which we will open the floor for questions.

As we all know, today business environment is becoming increasingly interconnected and volatile. Global uncertainty arising from geopolitical tension, ongoing conflicts, changing trade dynamics, and tariff-related measures continue to create challenges across sectors and economies.

These developments are placing pressure on business worldwide and impacting supply chain, commodity prices, and investment decisions. In response to such evolving challenges, the company continues to maintain a robust enterprise risk management framework that enables us to effectively monitor and manage multiple categories of risk.

Despite the uncertain environment, I believe the company has delivered a resilient performance during the year. During Q4, financial year 26, the company recorded revenue from operations at approximately rupees 2,521 crore, representing a growth of 27% compared to corresponding quarter of the previous financial year.

Adjusted EBITDA margin stood at 11% approximately for the quarter as against 15.5% in the corresponding period last year. During the year, the company repaid debt amount to approximately rupees 262 crore, resulting in further improvement in our debt equity ratio to 0.03, which is continuing to remain among the best in the sector.

During the year, the company has secured new order amount to rupees 10,700 crore, of which in Q4 the company has secured three new projects, comprising one tunnel project and two HAM road projects, aggregating approximately rupees 5,500 crore. In addition to about two HAM projects, appointed date of the one DBFOT project worth around rupees 3,600 crore is also awaited.

As on date, our order book stands at approximately rupees 26,470 crore. Further bids aggregating to approximately rupees 13,500 crore are yet to be opened.

During the year, please note, five HAM projects have been received. We also successfully monetized four HAM assets to Indus InfraTrust for total consideration of rupees 321 crore and recorded an exceptional gain of rupees 253 crore.

I would also like to reiterate that the company’s growth strategy is not limited to the road sector alone. We continue to see growing opportunities across metro, and railway, power transmission, battery energy storage system, telecom infrastructure, oil and gas, logistics, and warehousing and tunnel projects.

While the place of projects awarded may vary across sectors, the overall infrastructure outlook for India remains positive. We believe the country’s long-term infrastructure requirements continue to be substantial, and companies with strong execution capabilities, disciplined bidding practices, and healthy balance sheets will be well positioned to benefit from these opportunities.

Let me now briefly touch upon key sector developments. In transport sector, total railway got about rupees 6 lakh crore approximately in financial year 27 union budget.

We see a strong pipeline of rupees 7.6 lakh crore worth projects, including HAM, BOT, EPC and railway, and we expect order inflow in the sector to grow by around 10 to 15% in financial year 27. The railway sector also continues to move toward corridor-based capacity creation, freight decongestion, and technology-led operations.

A significant recent development is the approval of six private rail projects worth approximately rupees 18,000 crore and multi-tracking projects worth around rupees 27,000 crore. During the year, order book of transport view increased by 25% approximately.

We target a new order book of rupees 12 to 14,000 crore in financial year 27. In power and transmission, the power sector is expected to attract investment potential of nearly rupees 45 lakh crore over the next seven years across generation, transmission and energy storage.

Renewable energy vocation continue to drive transmission investment. Our focus would be on 20% of the bid pipeline of Indian rupees 1 lakh 20,000 crore, with a target new order book of rupees 5,000 crore in financial year 27.

In tunnels and hydro, the government is targeting tunnel projects worth approximately rupees 3 lakh crore over the next decade. The CCEA has also recently approved two large hydroelectric projects in Arunachal Pradesh worth around rupees 40,000 crore.

Bid pipeline looks promising at rupees 87,000 crore, with company focus on rupees 23,000 crore bids. We are targeting a new order book of rupees 2 to 3,000 crore rupees worth projects in financial year 27.

In oil and gas, Brent crude price touched nearly U.S. dollar 126 per barrel during the late April 26 amid heightened geopolitical tension, creating volatility in the energy market.

Despite these near-term challenges, we continue to remain positive on the long-term outlook of the sector. Bid pipeline remain healthy and we target a new order book of rupees 2 to 3,000 crore rupees in financial year 27.

Similarly, for other sectors including road, rail, telecom and renewable, we are targeting a new order book of rupees 1 to 2,000 crore rupees in financial year 27. Our focus throughout the year has remained on ensuring business continuity, protecting execution timelines and maintaining financial discipline.

As the external environment evolves, we will continue to take timely and strategic decisions to safeguard the company’s interests and deliver sustainable value to stakeholders. Financial year 26 has been an important year for us during which we maintained a prudent balance sheet, improved execution, order book expansion, diversification and financial discipline.

As we enter financial year 27, considering the economic and geopolitical situation, we remain optimistic about the opportunity ahead and expect to grow our top lines in the range of 15% and strengthen the order book with a target of new wins by rupees 20 to 22,000 crore rupees approximately, while continuing to remain selective and disciplined in our project bidding approach. I would like to thank our clients, lenders, partners, employees and shareholders for their continued trust and support.

With that, I now request Ankit to take you through the financial performance in detail. Thank you.

Thank you, sir. Here are the highlights of quarter four performance.

Standalone revenue from operations was 2,521 crore in quarter ended March 26, which is increased by 27% approximately year over year compared to 1,990 crore in the quarter ended March 25. The standalone revenue from operations was 7,620 crore in the year ended March 26, which has increased by 17% year over year compared to 6,515 crore in the year ended March 25.

The increase is primarily on account of better execution of the oil and gas and power transmission projects. The consolidated revenue from operations was 2,500 crore in quarter ended March 26, which has increased by 10% approximately year over year compared to 2,275 crore in quarter ended March 25.

The consolidated revenue from operations was 8,398 crore in the year ended March 26, which has increased by 13.5% year over year compared to 7,395 crore in the year ended March 25. The standalone EBITDA margin stood at 10.85% in quarter ended March 26 from 17.5% in quarter ended March 25.

The decrease was primarily due to one-time claims income recognized amounting to INR 47.5 crore in quarter ended March 25. The standalone EBITDA margin stood at 11% approximately in the year ended March 26, from 13.88% in the year ended March 25.

The decrease was primarily due to one-time claim income recognized amounting to 123 crore in the year ended March 25 and higher construction costs in the current year. The EBITDA margin at group level has marginally decreased to 14.73% in quarter ended March 26 from 23.96% in quarter ended March 25.

The EBITDA margin at group level has decreased to 19.31% in the year ended March 26 from 22% in the year ended March 25. Profit after tax at standalone level increased to 1,417 crore in quarter ended March 26 as compared to 371 crore in quarter ended March 25.

The PAT includes 182 crore approximately net of tax of exceptional gain on sale of four subsidiaries to NS Infra Trust. Profit after tax at consolidated level decreased to 209.86 crore in quarter ended March 26 as compared to 403 crore in quarter ended March 25.

The standalone net worth stood at 8,869 crore at the end of March 26. It was 7,888 crore at the end of fiscal 2025.

The net worth at consolidated level is 9,391 crore at the end of March 26. It was 8,503 crore at the end of fiscal 25.

The total standalone borrowing outstanding at the end of fiscal 2026 is 234 crore, with debt to equity of 0.03 times. The consolidated borrowing outstanding at the end of fiscal 26 is 4,845 crore, with debt to equity of 0.52 times.

During the quarter, the company has made additions to the fixed assets amounting to 36 crore approximately, and in the entire year around 133 crore. The net block of property, plant and equipment including work in progress and intangibles is 1,057 crore approximately at the end of current fiscal.

The investments in our subsidiary companies in the form of loans and equity are 2,271 crore at the end of March 26. The balance promoter contribution required to be made for our operational HAM and BOT projects is 3,486 crore, of which we are expecting contribution of approximately 1,000 crore in the current fiscal 27.

Working capital in days at the end of March 2026 is 128 days as compared to 217 days at the end of fiscal 25, and the increase is primarily on account of the debtors’ days. The trade receivable at standalone basis are 2,372 crore, including 1,667 crore HAM debtors at the end of March 26, and the trade receivables at the consolidated level are 745 crore at the end of March 26.

The unbilled revenue at the standalone basis is 808 crore approximately at the end of March 26, whereas the unbilled revenue at the consolidated level is 436 crore at the end of March 26. The inventory are at 739 crore at the end of March 26 compared to 538 crore at the end of fiscal 2025.

I sincerely thank all our stakeholders, including employees, business partners, vendors, bankers and auditors who have supported the company. On behalf of G R Infraprojects Limited, I thank everybody.

Thank you. Over to you.

Sure.

Yeah. Thank you, sir.

Good commentary in terms of the segment-wise and in terms of inflow that we are looking at. Just a couple of things.

What was said in the opening remarks, broadly now we are looking at 22-25,000 crore inflow in this entire year. Particularly the major still the chunk is from the road, 12-14,000-odd crore.

There just wanted to understand, given still the NHAI activity has not picked up, this entire, are we looking at the major would be the BOT toll form, or it would be a kind of equally the HAM and BOT toll? इसमें

NHAI का जो अभी outlook है, वो ज़्यादा

stress BOT के ऊपर है, लेकिन अपन HAM और BOT दोनों पर भी पूरी तरह से रहेंगे. EPC में थोड़ा-सा क्योंकि margin का बहुत ज़्यादा pressure है, लेकिन HAM और BOT में अपने लोग पूरी तरह से prepared हैं और इसमें जो authority की तरफ से भी जो outlook आ रहा है, positive है और BOT में काफ़ी कुछ उन्होंने जो concession agreement है, उसमें काफ़ी कुछ changes किए हैं, वो भी positive है.

आने वाले time में इस साल में अच्छी pipeline दिखाई देती है. तो sir, approximately कितना लग रहा है कि NHAI particularly say कि कितना kilometer या कितना value award हो सकता है?

For FY26 actually the exact number is still not clear how much they have awarded in terms of the kilometer. If you have, you can share also.

नहीं, उन्होंने करीब छह लाख करोड़ का जो

outlook दिया है, अब no doubt पिछले दो सालों में जो उन्होंने कहा है, उतना किया नहीं, लेकिन अभी ऐसा लगता है कि छह लाख करोड़ नहीं तो उसका कुछ मतलब 80%, 70-80% achieve करना चाहिए. मतलब उन्होंने outlook no doubt छह लाख का दिया है, तो कम से कम पाँच लाख करोड़ का तो कम होगा.

rate और मैं ये दोनों की बात कर रहा हूँ road और railway, transport infra की बात कर रहा हूँ. Okay.

But

NHAI specifically, sir, FY27 में कितना kilometer या कितना value आपको लग रहा है award होगा? ये आपको लग रहा है कि ये

Q1, Q2, मतलब चारों quarter में spread होगा, कि again it will be last fourth quarter में जाके ही कुछ दिखेगा? तो ये ऐसा तो नहीं लगता है कि last में ही जाएगा, लेकिन equally spread भी होना मुश्किल लगता है.

First Q1 में तो थोड़ा-सा, क्योंकि बहुत सारी formalities पिछले quarter की बाकी रहती हैं, लेकिन मुझे ऐसा लगता है Q2, Q3 में ये spread होना चाहिए. Q2, Q3, Q4 में ये properly होना चाहिए.

और जहाँ तक जो BOT के जो अभी project जो इन्होंने मतलब bid आ चुकी है करीब छह BOT के और 66 HAM के project, और इसमें मतलब already publish हो चुकी है NIT और ये जल्दी अगले एक-या दो महीने में tender होने चाहिए इनके.

Okay. Sir, हम लोग अभी जैसे 15% जो revenue growth देख रहे हैं, sir, ये on the conservative side है कि let’s say हम लोग awarding थोड़ा सा अगर pick up होता है, जो भी अपना तीन pointed date बचा हुआ है, there is a possibility that कि अपना पीछे का last दो साल का kind of backlog थोड़ा सा बचा हुआ है in terms of whatever we were thinking execution.

Can we look at even 20% kind of a possibility is also there? Let’s say अगर 15% ये साल में करते हैं तो next year 28 में अगर हम लोग 20-25,000 crore करते हैं, तो can we look at मतलब 25-30% type का growth FY28 में?

देखिए अपने infra में कभी भी देखेंगे ना, तो जो inflow होता है उसका impact अगले साल ही आता है,

same year में आता भी नहीं. अगर ये अपन

15-20% की growth की बात कर रहे हैं, इस साल की बात कर रहे हैं और

inflow होगा तो उसका impact अगले साल में आएगा. जी जी.

तो अगर ये

inflow आया तो अगले साल अपने 25-30% का भी देख सकते हैं, मतलब absolute level पे अगर आपके पास कुछ है, मतलब क्या next year क्या, इस साल में 15-20 और next year में कैसे देख सकते हैं? मतलब अपने inflow इस तरह से तो रहिए, कम से कम कभी भी इस साल भी 15-20% की और अगले साल भी 20% की growth देखेंगे.

Okay. Margin में sir हम लोग जो साढ़े 10-11% पहले बोल रहे थे, तो अभी लग रहा है कि minimum 11-12 plus type का possibility अभी लग रहा है कि अगले 27 और 28 में वैसा टक्का के नहीं ये साढ़े 10-11 ही given the competition.

देखिए

margin का तो जहाँ तक सवाल है ना, अभी ये geopolitics में आप disturbance देखिए, अब ये किस हद तक और कितना time में अभी कोई predict नहीं कर पा रहा है. अगर आप ये disturbance देखें, अपन जो अभी Iran का US का जो चल रहा है, अपने कितनी बार solve हो चुका है और कितनी बार फिर वापस अपन उसी stage पर आ जाते हैं.

अब चार दिन पहले अपन ऐसा सोच रहे थे कि अभी ये problem solve होगी, अब अपने को इसको ठीक करना है, लेकिन आज फिर वापस वही पर खड़े हैं. इस पे बहुत कुछ dependency करेगी margin के ऊपर, क्योंकि हमारे जो road में particularly जो commodity है, वो fuel और bitumen petroleum products पे काफ़ी कुछ dependency है और ये disturbance अगर continue रहता है तो margin में कुछ नहीं कहा जा सकता.

Got it. Sir lastly

capex अभी FY27 में हम लोग कितना देख रहे हैं और other income particularly जो Indus का जो है वहाँ पे भी

capital वापस वाला जो चीज़ है, repurchase increase हो रहा है

versus interest and dividend. तो at a standalone level पे जो हम लोग other income जो आ रहा था Indus से, वो for FY27 में कैसे देख सकते हैं?

ये capital का जहाँ तक investment का जहाँ तक सवाल है, 300 से साढ़े 300 करोड़ रुपये का रहेगा, लेकिन जो Indus का जो return है उसके बारे में थोड़ा-सा आपको Anand ji और इनकी जी बताएंगे. Indus में क्या होगा कि no doubt जो capital return होगा, Indus और भी acquire करेगा, तो उसमें भी dividend flow बढ़ेगा.

तो ये इसमें Indus में largely it is more of yield product, तो पैसा इतना आता रहेगा, वो एक है income के form में आएगा, capital return आएगा, मतलब it is more about to, मतलब more in terms of the movement of cash flow है, it is. तो अभी जैसे dividend कम हो गया, interest ज़्यादा आ गया, फिर acquisition हो जाता है, asset का acquisition होगा तो again it will start giving more dividend and all that.

Yes, cash flow के मामले में अगर बात करेंगे, तो that would be in the range of 200-250 के बीच का range का रहना चाहिए.

Got it. Capex for FY27, tell me?

वो sir ने बताया, अभी

300-350 के आसपास का capex होना चाहिए. Okay.

ठीक है sir, thank you and all the best, sir. Thank you.

Yes sir, thanks for the opportunity. My first question is on the execution front.

You had guided for about 3,000 crores of revenue in Q4. What has impacted the execution?

We were expecting about 600 crores from oil and gas sector as well. How has it been the execution in that segment?

एक

particular project में थोड़ा सा on-deadline नहीं आने की वजह से थोड़ा सा effect, और second जो March में जो disturbance रहा है, तो March के बाद में अब आप देखिए पूरा जो geopolitics का disturbance रहा, उसकी वजह से ये reduce हुआ है, उसकी वजह से हुआ है.

Understood. How was execution in oil and gas segment?

600 crores का

expect कर रहे थे revenue. इस quarter में we have done almost 400-450, 400 के आसपास का this quarter में.

Largely see, because of change in prices, मतलब there is a drastic change in the prices, both increase in the prices, actually resulted in slow execution. काफ़ी सारे challenge आए, जो that late awards was supposed to be given by the authorities, right, in terms of price variation and clause.

So, वो उस सेक्टर में थोड़ा slow हो ही जाता है, and that is the main reason March में थोड़ा सा ये slow हो गया.

Understood. Second question is on BOT projects of NHAI pipeline में कुछ बड़े projects हैं, 7,500-5,000 करोड़, 9,000 करोड़ के.

Are we keen on bidding these high-value projects given the higher equity requirement for these projects?

We are evaluating, subject to, of course, if it fits to our metrics, then certainly we'll be keen, करेंगे bid तो करेंगे, but depend on the return on those investment and all, right.

Last question on the three projects, Agra-Gwalior BOT and the two HAM projects, when can we expect the execution to start?

After monsoon season के बाद में इनकी appointed date मिली थी. Agra-Gwalior तो already delayed है, तो अभी तो there is no point in starting, even if let's say.

We'll try कि हमारा भी appointed date should be in sync with our execution period as well. So

any risk of the Agra-Gwalior one getting cancelled or anything of that sort?

Risk तो, the time, it is already expired, right. One year तो already over है, but these kind of indications so far we haven't received from the authority.

And अगर वो terminate करते हैं तो they have to pay the claim also, right. It is not as simple as that, right.

I think risk अभी minimal है, but yes, it depends totally, it's totally in the control of NHAI. तो ज़्यादा नहीं बोल सकते.

Far whatever discussion we are having with NHAI people, अपने को लगता है कि we'll be able to get that appointed date, maybe. There, July-August में लेने का कोई sense नहीं बनता because then there would be rainy period, हो सकता है September के आसपास में अपने को मिले, September end में.

Got it, sir. Thank you and all the best.

Thank you.

Yes, thanks for the opportunity. Sir, ek question था sir, ये oil and gas project contribution, how do you see it contributing in FY27?

Are we ready to bid on our own for this oil and gas pipeline projects?

For 27, our target for this sector is around 1,200 crore, का target है for this particular sector. In terms of direct bidding, what we are evaluating is to participate with the technical member who can make us eligible for direct bidding as well.

We are just evaluating to directly, and we are actually active on this front as well. Maybe in the next six months of time we'll be able to bid directly as well.

That's our intention, that's we aspire to, that's we are targeting as well. And

Can you just help us with your outlook on the transmission projects pipeline? आपने कहा कि एक लाख बीस हज़ार करोड़ का है, but do you expect the entire thing to get bid out in FY27, or do you think part of it to go in FY28?

नहीं, Anand

Rathi (CFO, G R Infraprojects Limited): current year में our target or focus pipeline is around 25,000 crore only. We are not targeting 120-1.2 lakh crore, right?

It is only 25,000-30,000 crore, out of which we are targeting we'll be able to get around 5,000 crore of order. This is our basically plan.

How do you decide this large pipeline? How do you select this 25,000 crore?

Is it based on the bid value? Is it based on the areas you want to work?

How do you decide and arrive at these numbers? So

it is a combination of both actually. Sometimes it is area, sometimes it is value, because we may not be willing to bid for 20,000, 30,000 kind of project value.

At the same time, sometimes we are also not willing to go into such kind of area where execution is difficult, right? It's a mix of it.

What was the equity investment in HAM and transmission projects at the end of FY26, and how much are we looking to invest in FY27 and FY28? Is that number handy with you?

Yeah.

So

the total contribution which was required was approximately 5,400 crores, of which already 2,055 crore has been contributed, and the remaining contribution is 3,486 crores approximately, of which in the current financial year 26-27 we estimate a contribution of 1,000 crores.

Understood. Thank you, and all the best.

Thank you.

Hi sir, thank you for the opportunity. Just wanted to dwell on your logistics and warehousing business.

I think there are three parts, right? Forward, which is MMLP Indore.

Then there is a 4C, which I think is in Guwahati and Samaguri. Foreign there are some 15 operational dark stores.

Just wanted to understand, I also saw your results and there is one already warehousing SPV is already created. Have we already acquired some land and are we started working on it, on the warehousing thing?

What are our plans in terms of investments? Since these are the front-heavy capex investment, is it going to affect our ROE for some period of time?

इसमें जो इंदौर का है, वो तो गवर्नमेंट के साथ में अपना

bid किया हुआ ही है और जो दो प्रोजेक्ट आप बता रहे हैं, उसमें land की acquisition पे बातचीत चल रही है, progress पे है और जल्दी इसके ऊपर finalize कर लेंगे. और investment का plan आप कीजिए share करेंगे.

तो

investment में क्या है कि other than multimodalistic, our target is to invest in terms of equity 500 to 700 crore of equity, which we are targeting in next.

Total investment we are targeting 600 crore, of which around 25%-250 crore would be equity,

for current year, right?

For current year.

I am giving basically number for next three years. Right, right, right.

This is the plan for in this particular sector where we are targeting almost 600 or 700 crore of equity investment in next three years of time. What you ask for is that it would be impacting the return on equity on, yes, for the current year it may, because it will take time once it is completed and we'll be able to monetize it through some other vehicle, then certainly it will give that fillip also, right, to equity returns.

It may take time for next two years of time. For current year certainly we'll be developing and then next two years of time we'll be focusing on monetizing as well.

Then it will certainly... This is, of course, a long gestation period.

It is not that in the current year itself we'll be getting that result

here. When you say this 600 crore, the equity investment, it's from our side, right?

From the promoter side, or are we also engaging some partner, like 50-50 partnership or something, or this 600 crore is totally from our side?

This is our own plan. Maybe depending on the project, right, where, let's say because of the project size, or where we believe that we need some partner, we can get them also along with us, and then probably the total investment in that project would be more than what we are assuming, right, on our own.

This investment also includes the foreign, right, where we have already 15 operational dark stores. Are these dark stores, are we owning these dark stores or we have taken on lease?

How is that model working? No,

no, these dark stores are actually on lease, it's not much investment over there which we are anticipating, right? These all are on lease here.

The last two questions, I think the NHAI has come up with a new BOT RFP, and there are many stringent conditions are involved. Just wanted to understand, we have already placed bid for the Nashik Phata–Khed project, which is something around 7,300 crore.

Do you think will it again go for the rebidding, or now it will directly go for the financial evaluation stage?

To that extent I am not privy to, because that bid has already been received by the NHAI. Probably I believe that would be under evaluation.

I don't think they would be analyzing this process, and I haven't heard so far about this.

Sir, last point, just a bookkeeping question. Given the profit on the sale of monetization, does this profit also include from the deferred consideration, whatever you have mentioned?

What is the color of this deferred consideration, if you can throw some light on that?

Can you repeat the question?

Deferred consideration, yes, of course,

we haven't received that hundred percent amount in cash so far, reason being

63 crore is the...

reason being there are something at SPVL which is to be settled by NHAI. These are the, for example, in terms of fixation of the amended or revised bid project cost, right?

There are some GST claims which are yet to be released by the NHAI over there, right? These, as and when those claims or those settlements happen over there on this SPVs, we'll get that payment.

But

have we incorporated the... Yeah.

So

sorry, why is not audible? No,

no, I was mentioning that, yeah, this deferred consideration is already included in the profit in the current year P&L. You are showing as a receivable

in the balance sheet? That is from my side.

Hi, good afternoon, sir, and thanks for taking my question. First, I just wanted to get the update on the BSNL project and also the MSRDC project.

See, on BSNL project, we are waiting for ROW clearance. Far we have not received the ROW.

Though maintenance activity has already started over there that existing project which was handed over by local authority to us. We started maintaining those equipments and those lines, right?

Because of that election era, right? That was the reason that ROW also got delayed by another one and a half months.

Probably what we are expecting is that in next one month of time we start receiving ROW clearances and we'll be starting execution as well, right? The second question was related to MSRDC.

MSRDC mein ek project hamara jo chal raha hai, wo achhi progress mein hai, aur jo do L1 pe the, wo cancel ho chuke hain, rebid mein aa rahe hain.

Sure. Sir, you had given a guidance of 20,000 to 22,000 crore of order intake.

Usme aapne bola tha roads mein kareeb 12 se 14,000 crore hai, maybe 1 se 2,000 crore rope pe hai, and oil and gas mein. Iske alawa aur kaunse sectors hum target?

Power transmission is there, 5,000 crore ka power transmission is also there, right? Tunnel hydro hai, there we are targeting 2,500 crore orders, right?

Similarly to optical fiber cable, jo BSNL wala hai, usme bhi 500-1,000 crore ka usme oil and gas is also there, right? Renewable is also there.

To saara mila ke almost 20-22,000 crore ka that amount which we are targeting.

Sure, sir. That's it from my side.

Thanks and all the best.

Thank you.

First you on oil and gas. We are targeting revenue of closer to 200 crores in 27.

Is it a part of our order book, or order book doesn't include any oil and gas for March 26?

27, but 200 crore nahi, 1,200, right?

1,200.

1,200. Yes.

See, some part of it is already part of our order book, and those are things approved. But 1,000 crore will be actually targeting for this current year.

From the new order?

From the new order, and I would say it is more existing. It is already existing order where we have to continue our engagement, right, with that same company.

That's why... To March 26 mein abhi 250 crore ka order book hai, which is there in oil and gas.

Right.

Sir. Secondly, on the appointed date for the new to HAM assets, wo should come sometime in next year, first quarter?

Wo

appointed date, depending on the land availability, can be the third quarter, or October to January, February, that's the period which we are expecting.

You are expecting within this year itself?

Within this year itself.

Sir, and what is the land status currently in both the HAMs?

Wo na to handy nahi hai. That we can let you offline.

You can send us an email.

Sure. Lastly, on the depreciation part, we have seen a very sharp reduction on a quarterly basis, which has gone down to roughly 45-odd crores now, versus our peak numbers of roughly 60-65-odd crores.

Incrementally now this should jump significantly given the higher capex plans we have in next couple of years.

No. Capex is basically for the plant and machinery and certain other specialized equipment which we are planning for our tunnel project and power transmission projects.

This inventory pile-up is basically to execute our existing power transmission projects. So

the factory, right now on a quarterly basis of 46 crore for Q4. Incrementally similar rate rahega ki we can see a big jump?

You can see a jump because in inventory, right? Inventory you are asking, correct?

Any capex,

depreciation? Depreciation, yes.

Depreciation, as sir already mentioned, that we are planning the new capex in the range of 300 to 350 crores, correct? At the same time we will also recycle our old equipments.

Depreciation will remain more or less in the same range.

We can actually see a similar number of capex in FY28 as well, or it can taper off?

28 is too far too. Right now capex for this current year, what we are targeting is basically, as we are going on power transmission, right, on tunneling also we have taken some projects.

To uske liye some equipment is required for those projects, right? Those kind of capex may not be required for 28, right?

For 28 then if we are going some other sector then probably. As of now what we are saying is this is one of kind of investment because for last three, four years, at least for last three years, our capex was in the range of 100 crore or, right?

This time we are targeting in the range of 300-400 crore, right? It's only because of that we have entered into different sector, right?

We have taken projects also. Next year it is too early to say, but yes, as of now we don't see that 300-400 crore project capex would be there in FY28 as of now.

Yes. Hi, sir, thank you for taking my question.

I just wanted to ask that will we be transferring any projects to the INVIT during this financial year?

This is ongoing process. I think we'll continue with this.

We'll be transferring certainly at least three, four projects which we have completed, which we received the COD at least one year before, right? It's only after one year of completion of operation period we are eligible to transfer, right?

We can transfer here.

If you could explain the multiple at which we transfer these projects to the INVIT, that would be really helpful.

See, multiple, this is cash flow discounting method, right? It is not that we have agreed to a certain multiple while transferring any project.

Depending on the future cash flow and depending on the market condition at that point of time, right? That valuation is done by the independent valuer and based on that we are transferring the asset.

There is no ballpark multiple that we can think of or that you...

This is a big range. It can be between 1.25 to 2.25.

That's a big range, right? There is no point in...

And

sir, about the cash flows in this year, the cash flow from operations is really low compared to the previous years. How are we going to manage the working capital going on forward?

Far we are comfortable with our working capital. We haven't utilized our bank limit as well, right?

This year because we have diversified into different sectors, right? That may be the reason which I believe that is actually pushing us to invest more in the first year or second year.

Maybe over the period of next one or two years, we'll be again normalized in terms of our working capital, etc. and all that.

It's just because of accelerated execution?

Accelerated execution I won't say, but it is more kind because of diversification. We are entering into different sectors, right?

So

that is where we have to invest more.

Okay. Do we ever plan to monetize the INVIT units if we require in the future?

We have 2,400 crore worth of investment in that.

We just don't have think through it so far, but yes, of course, to certain extent, maybe 100-200 crore is a different, we can think at any given point of time, but yes, we just don't have that concrete plan where we have to offload 50% of the units which we are holding on our balance sheet. Far we haven't had, but yes, of course, a piecemeal of that, a small piece of that we can certainly look to divest.

Sir, understood. Thank you.

That's all.

Thank you.

Hi. Thanks for taking my question.

I have a couple of questions. पहले तो basically अगर मैं पिछले सारे years का execution rate देखता हूँ, I believe the execution rate as compared to order book has came down.

Where exactly we are stuck, so that our order book is strong, but whereas our execution rate is coming down. That is first question.

Second question related to the previous participant, the three assets, five assets what we transferred to INVIT. The multiple, specifically if you can throw some light on price to book value kind of things, that will be helpful.

Third question is related to construction cost. I can see around this time the construction cost has increased and in fact for full year basis also it has increased.

As a percentage of sales I can say it is 75%. It has increased around 3-4% as compared to prior years.

Is there any initiative or anything we can do to reduce this construction cost so that our margin will expand. I am happy that we are maintaining the margin 10 to 12% and gradually we are focusing to improve the margin.

Is there anything, any initiative we are taking to expand the margin by reducing the costs? These are my questions.

So

let me take your question in the order you have raised, right? One first is that execution rate, right?

Yes.

We have gone down. Execution, see issue is in last I would say couple of years what we have seen is that generally land, see when this model came up, right?

What has happened when this industry was actually back on track in initial years in 2017, 18, 19. That point of time it was a lull period, right?

Between 2010-11 there was no execution at all, no awarding at all. At that point of time generally authority, what they did, they do at that point of time was they were just accumulating the land.

There was no awarding, there was no taker, there was no lender was supporting. Once they started, so that was the backlog which was pushed actually into this sector, and 100% land was made available.

All the contractors started executing fast with new strength or whatever you say. Over the way what has happened is that they could not keep the same pace of accumulating land.

Land is a big issue in the country, right? Bengal mein to you have seen or news article you might have read that Bengal mein to abhi land itna pending hai because of so many projects are stuck in that state because of land only, right?

Similarly there is the case for Punjab also, right? To ab kya hai, land aggregation is the biggest challenge in the sector.

Of late what has happened is that ki wo piecemeal mein land milta hai and we are not able to execute at the same speed, right? Because if we are getting in the piecemeal, different different pocket mein, when we are executing the project, it is also increasing the cost and it is also taking time as well, right?

Because time-wise bhi to execute, right, continuous stretch of five kilometers versus five different patches of one kilometer. They are taking time.

To is wajah se bhi kya hai, of late ye challenge which we are facing ki execution. Of course appointed last three saal mein agar aap dekhoge to do project was there, but appointed date wo could not be declared.

When appointed date start declaring, right, then land was 100% land was not there. Authority came up with the new concept provisional appointed date, where not 80% land was also there, but even 60% land, because we are into industry, we have already having mobilized that machinery, plant over there, assuming that the land would be acquired on time.

Then we also somehow convinced by the authority that, okay, let's start on execution, so that khud se machinery idle khada rahega, there is no point. That was kind of, kya tha ki, arrangement, and actually it resulted into delay execution, right?

Ye to ye ho gaya in terms of execution rate. Now second question you asked about the price to book value.

Abhi humne jo becha hai, you asked for this specific SP which we have transferred, to wo kareeb 1.18 or 1.2 ke aas-paas ka aa raha hai, right, ki jo apne price to book value mein sell kiya hai. Construction costs, what you are saying is increasing, rather I can say it is revenue which is decreasing.

Because abhi jo competition hai, right, where you can say, this is also visible to everybody, that NHI estimates se pehle 20% upar jata tha bid price, now it is going up to 30-40% down from NHI estimate. It is because of competition.

Dekho road to banana hai, bitumen to lagna hai, patthar to utna hi lagna hai, aggregate utna hi lagna hai, cement utna hi lagna hai, right? It is not going to reduce.

This is my theory. There may be players, there may be people who would be reducing accordingly their input also, right?

Logically, in last five years of period, you will see that because of increased competition, prices have come down, which actually is creating pressure on revenue rather than cost. Agar effectively, if we have to compare the landed cost of the material, what we were actually having five years back, right?

To usme interest cost to kam tha. Aaj ki date mein interest cost kam hai, that five years back it was higher, right?

There was good that mechanism. Various kind of methods were available to us.

Jo aaj available hai, which is available to us right now was not available at that point of time, right? Uska funding methodology bol do, whatever you say.

It is actually impacting the cost. To us time mein maybe in 2020, my cost of material on absolute number was higher than what right now I am making payment today, right?

If we are comparing it with my revenue, revenue has drastically come down. To usko to I can't, 40% revenue agar main neeche kar lunga to I can't reduce my cost of material, cost of construction to 40%.

Us time mein main kya faltu material thodi laga raha tha?

Right? To

at least it is actually the other way around. It is not that construction cost is increasing; it is basically revenue which is decreasing.

Where it is perceived that construction cost is increasing, right?

Correct. Sir, if I may ask the last question pertaining to the first question about the execution rate.

As you mentioned several factors are impacting execution rate, right? Can someone assume that 80%, 85% of execution risk factor is factored in your current execution rate, or someone can assume the same, or little marginally increasing order of execution rate going forward?

Execution rate we have to assume at same level. I don't think it is going to increase.

It is not going to increase.

Thank you, sir. That's all.

All the best.

Thank you.

Thank you, sir, for the opportunity. My question is regarding the oil and gas projects that we do.

What is the tentative kind of margins that we make in these projects, and how do we see it going ahead?

See, our target is to have at least 10%, 8-10% kind of margin. What has happened is because we are the new entrant into the sector, we have to learn through this process.

Not only that new entrant, but yes, of course, of this geopolitical issues, which is impacting the fuel prices, right? petrol on a large scale basis.

Margin has yet to be seen. Let us compete one or two cycle on this particular sector, and then only we'll be able to give you some guidance on what kind of margin which we are expecting on the sector.

Okay. Second question would be, in terms of the geopolitics or the crude prices.

What part of our cost or what percentage of our cost is directly kind of impacted by the increasing crude prices? So

if we talk about highway sector, road sector, or transport sector, it is almost 40% of the cost,

32-40%, 15% fuel, and 22-25%

bitumen, and again because raw material also somewhere is, getting, yeah, it is to be transported, it is to be prepared by your... It is to be, diesel is somewhere, somehow it is getting consumed over there, right?

So 40% I would say reasonable number, which is actually impacting our cost. 40% of cost is getting impacted because of this fuel and all that.

We would have a pass-through mechanism as well, right?

Pass-through mechanism is there in normal situation. This is abnormal situation.

We are also struggling right now. We have been discussing with the authorities how to get out of this situation, right?

They are supportive in this time of crisis. I wouldn't say that they are supporting, but we have to develop some mechanism to basically have some insulation from this kind of impact, right?

Probably we'll come out with some more good formula also. Until then probably we have been impacted,

right. Thank you, sir.

My last question was just a clarification. You said the two MSRDC projects are going for a rebid.

Those are included in our 26-471 crore order book?

No, no, no. No, no, no.

Not included. Those projects are annulled, those processes annulled.

It is already out from our bid, out from our order book. We never include L1 in our order book.

Thank you, sir.

Yeah. Thank you.

Thank you.

Sir. Thanks for the opportunity.

Sir, आपने initially commentary में बताया कि geopolitics has an impact on execution. Just to understand, since our order book is from NHAI से है, Maharashtra State Government से, any authorities, are they saying to slow down execution or probably there is a delay in the payment for us?

Can you share something if we have to make a relation with the geopolitics? नहीं,

authority कभी भी क्यों कहेगी कि आप slow

down करें? Authority को तो

support देना पड़ेगा ना बजाय उसको रोकने के. तो हम लोग बात कर रहे हैं NHBF के through, सबके जो भी organization के through, कि भी कुछ support किया जाए ताकि ये जो abnormal condition है, उसमें contractor को या concessioner को support मिले.

Authority कभी काम रोकने को या slow करने के लिए नहीं कहती.

Okay. और any delay in payment ऐसा कुछ दिख रहे हैं अभी sector में?

नहीं, नहीं. payment में delay कहीं भी किसी भी project पे नजर नहीं आ रहा.

Okay. Second, sir, related to this margin पे probably आपने काफी, मतलब, explain भी किया है अच्छे से.

Just to understand, since NHAI या maybe

state orders हैं, वहाँ पे

order पे पूरा escalation अपन को मिलता है? There may be a lag, एक-दो quarter का आगे- पीछे, but पूरा escalation मिलता है, ऐसा understand करना सही है या इसमें कुछ आप add करेंगे?

escalation मिलता है. normal condition में वो अपने जो escalation होता है prices का, उसको serve कर देता है.

Again abnormal condition में थोड़ा सा मुश्किल हो जाता है क्योंकि जो escalation मिलता है generally जो material cost और CPI और WPI जो होते हैं, उनके साथ से मिलता है. पर अपने जो material use होते हैं, वो directly bitumen, diesel, ये direct use होते हैं.

उसकी prices काफी ज़्यादा हो जाती हैं comparison, मतलब जो wholesale price index है या labor index है, उसके compare में काफी ज़्यादा हो जाती हैं. तब वो पूरी तरह से pass-through नहीं होता है।

अच्छा, अच्छा, अच्छा. Sure, sir, I think this is helpful, sir.

I'll come back in the queue. Thank you.

Hi, sir. Thank you so much.

Sir, we said, two MSRDC projects

were cancelled.

It was two Pune ring road projects, or one was also Nagpur Chandrapur? इसमें एक Pune

ring road का था और एक Nagpur Chandrapur का था. Pune ring road का एक project अपन execute कर रहे हैं.

Western Pune ring road.

Western Pune ring road. Got it, got it.

For that, it is received. So

work is already in progress.

Got it. Lastly, any update on, sir, income tax search, which happened in, I think October 25?

So नहीं, income tax search में, I think beyond that we haven't received any, even communication is there, they have shown some material. We have also replied them, right?

Now it is up to them. They will be doing some, because this is a process which we have to follow.

They will be coming up with their so-called notices going forward and we have to file our return back. Far nothing material probably, which I would say we have to find out, right?

Understood, sir. It is regarding which period?

See, search is generally for last six plus current year period. It is for seven years, right?

It is as per law. They have to cover, they can go up to six years back, right?

Understood. Understood, sir.

Thank you so much.

Thank you.

geopolitics में जिस तरह जो environment में अपन काम कर रहे हैं, थोड़ा tough time है, लेकिन जिस तरह की opportunity है India के market में infrastructure में, वो immense opportunities हैं. अपन किसी भी देखें, power transmission में देखिए, power transmission में अपने जो power production के जो center थे, वो change हो गए हैं और उसकी वजह से जो power transmission line की requirement.

इधर second, अपन अगर देखें कि जो solar में है तो वहाँ production बहुत high capacity का हुआ है लेकिन अपने पास में storage capacity नहीं है. तो battery storage में काफी काम होना है.

highway का देखें तो अभी highway का अभी बहुत कुछ काम होना बाकी है. तो infra में बहुत कुछ काम होना बाकी है.

तो अगर अपन अपनी discipline तरीके से, जिस तरह की अपनी balance sheet है, जिस तरह के अपने पास में skill है, जिस तरह के अपने checkpoint है, उसको लगाकर मैं इस तरह से देखता हूँ कि GR Infra एक well-placed company है और सभी बहुत जबरदस्त opportunities हैं. आप सभी लोगों का confidence और जिस तरह से आपने रखा है हमपे, उस तरह से रखेंगे तो अपन बहुत आगे नए milestone achieve करेंगे.

Thank you.

Thank you.