Thanks. Good afternoon, everyone, and a warm welcome to the Q2 FY26 earnings call of Afcons Infrastructure.

We have the management today being represented by Mr. Subramanian Krishnamurthy, Executive Chairman; Mr.

Srinivasan Paramasivan, Managing Director; Mr. Ramesh Kumar Jha, CFO; and Mr.

Hitesh Singh, Head Corporate Strategy. At this point, I'll hand over the floor to Mr.

Krishnamurthy for his initial remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir.

Thank you, Bhoomika. Good afternoon, ladies and gentlemen.

It's always a pleasure to connect with our valued investors, analysts, and stakeholders. I thank you for joining us today and for your continued support in Afcons' journey.

Our financial records and investor presentation have been uploaded on the stock exchanges, and I trust you have had the opportunity to review them. Joining me today are Paramasivan Srinivasan, Managing Director; Ramesh Kumar Jha, Chief Financial Officer; and Hitesh Singh, Head Corporate Strategy.

Let me begin with an overview of our financial performance for the quarter ending September 2025. For the first half of FY26, our revenue was ₹6,520 crore, representing a growth of 3.4% year-on-year, while EBITDA rose 6% to ₹846 crore.

EBITDA margin came in at 13%, reflecting an improvement of 30 basis points. The PAT for H1 stood at ₹242 crore, a 7% increase over the previous year.

In Q2 of FY26, we recorded a revenue of ₹3,101 crore, marginally higher than ₹3,090 crore in Q2 of FY25. EBITDA for the quarter stood at ₹401 crore compared to ₹427 crore in the same period last year.

The EBITDA margin for Q2 FY26 was 12.9%, broadly in line with last year's level. Profit after tax came in at ₹105 crore compared to ₹135 crore in Q2 of FY25, sorry, compared to ₹135 crore in Q2 FY25, reflecting a margin of 3.4%.

Despite near-term pressures on margins due to mix of projects under execution, our overall profitability for the first year's first half improved modestly, with EBITDA margin rising to 13%. Now turning to the industry.

The global infrastructure sector continues to face dynamic and evolving landscape. Geopolitical uncertainties, macroeconomic headwinds have led to recalibration of investment priorities in several regions.

However, we continue to see healthy project pipelines in select international markets, particularly in Africa, Middle East, and Eastern Europe, where governments are prioritizing connectivity, urban development, and water-related infrastructure. In India, government's commitment to infrastructure development remains strong.

Both central and state governments have a healthy pipeline of projects. Far, the current fiscal has seen a moderation in the pace of project awards.

However, we expect that H2 will see an uptick on capital expenditure towards roads, railways, urban transit, marine, hydro, and water infrastructure. Afcons' diversified portfolio, strong execution capabilities, and prudent risk management framework positions us well to navigate these near-term challenges and help us in capitalizing emerging opportunities both in India and overseas.

We continue to focus on delivering complex, high-impact projects that contribute meaningfully to national development and global infrastructure transformation. Now speaking about certain recent developments on the organizational front, we are pleased to share that Mr.

Pallon Mistry and Firoz Mistry, representing the next generation of Shapoorji Pallonji Group, have joined the board of Afcons Infrastructure. Their induction is a significant milestone, reinforcing promoter group's long-term commitment to Afcons and ensuring continuity in vision and strategic direction.

We are equally pleased to welcome Mr. Santhosh Nair, an independent director.

Mr. Nair brings with him over four decades of experience in project finance, banking, and insurance.

These new inductions to the board will provide invaluable strategic insight, strengthen governance, and supporting Afcons' long-term growth initiatives. On the operations side, Afcons continued to deliver on complex engineering challenges and set benchmarks in execution excellence.

One, we achieved a major milestone in Mumbai-Ahmedabad high-speed rail C2 package with final breakthrough of NATM tunnel in the presence of Union Railway Minister Ashwini Vaishnaw. This completes 4.82 km of excavation through tough geology.

In Kanpur MRTS, we completed 6.53 km of TBM tunneling, and in Delhi MRTS, that is DC-07 package, we achieved 11.62 km of TBM tunneling, reinforcing our leadership in underground works. Our Pakal Dul Hydroelectric Project has been chosen as the best-rated construction project by NHPC for the financial year 2024-2025 amongst all other ongoing projects.

Afcons continues and has continued to win accolades with prestigious institutions such as ET Now Infra, Construction World, Construction Week, recognizing as one of the best companies in the industry and also bestowing some of our marquee projects with awards for excellence in their quality and execution. In closing, I would like to reiterate our commitment to operational excellence, stakeholder value creation, and sustainable growth.

With the continued support of our promoters, the trust of our clients, and the dedication of our people, we are well poised to build on Afcons' legacy and shape the future of infrastructure. Thank you for your confidence in us.

With this short speech, I request our Managing Director Paramasivan to share his remarks.

Thank you, Mr. Subramanian, and good afternoon, everyone.

I extend a warm welcome to all participants on this earning call. Adding to Mr.

Subramanian's update on the changes to our board composition, it gives me great pleasure to share that Mr. Shapoor Mistry has been elevated to the role of Chairman Emeritus, and Mr.

Subramanian has taken charge as Executive Chairman of Afcons. On behalf of the entire Afcons family, I congratulate him on this new role.

Also he received a Lifetime Achievement Award at the Construction World Global Awards 2025, a fitting recognition of his outstanding leadership and contribution to the infrastructure construction sector. Let me now turn to the business environment and operational performance.

The first half of financial year '26 presented its share of challenges. Execution in some projects was temporarily impacted by prolonged monsoon and natural calamities.

Persistent liquidity issues with certain clients added to these headwinds. However, we are actively working with clients and authorities to recover lost ground and regain momentum in the second half.

The pace of ordering activity has been slow in the first half of the year, but we expect significant uptick in the second half. Our order inflow during the first half stood at ₹1,268 crore, and our pending order book remains strong at ₹32,681 crore.

We do expect some of the L1 orders to fructify in the current quarter. We have a strong project pipeline of around ₹3.6 trillion spread across segments and geographies.

We have always expressed that in our industry, especially in the case of companies like ours, whose focus is very different, quarter-to-quarter comparison on order book may not be relevant. Suffice to say, on the back of strong pipeline and ongoing tendering activities, we will achieve the full order book guidance.

On the international front, we expect to receive letter of award for the Croatia railway project before end of third quarter of this financial year, and the LOAs for the road projects to follow. We are also actively working to identify and pursue suitable opportunities in the Middle East, building on the renewed engagement that began earlier this year, and in Africa.

With these projects coming in, the share of overseas projects will be close to 30% in the pending order book. In the domestic market, we are witnessing heightened competition, particularly in metro projects.

Afcons continues to remain selective and disciplined, focusing on projects that align with our technical strengths and prudent risk framework. We are also seeing a gradual evolution in the government's infrastructure strategy, with a growing share of projects being offered under HAM, annuity, and BOT models.

To capitalize on these opportunities as a preferred EPC player, we are having necessary engagements. Operationally, I am pleased to share that the first consignment of tunnel boring machine for our C2 project have arrived from China.

However, the second consignment is awaiting clearance at the port for the last two months, and we are actively pursuing with all the concerned authorities and ministries to secure its release at the earliest. In the Jal Jeevan Mission, particularly in Uttar Pradesh, delays in fund flow continue to affect progress.

We are in active dialogue with clients to expedite the release of moneys. Despite our best efforts, given the headwinds faced in the first half, including delays in the conversion of L1 orders, our revenue growth for financial year '26 will be below the earlier guidance.

We estimate revenue growth to moderate to 10% plus. We had earlier expressed 20% plus, now we are reducing our guidance to 10% plus.

In conclusion, while the first half tested our resilience, our fundamentals remain strong. With a healthy order book, with a robust opportunity pipeline, and deeply committed team, Afcons is well positioned to regain momentum in the second half and continue to deliver long-term value to all stakeholders.

Thank you once again for your confidence and continued support. I'll now hand over to Mr.

Ramesh Jha, our CFO.

Thank you, sir. Good afternoon, everyone.

Before talking on the numbers, let me reiterate that our quarterly number varies. Company is into business of construction.

The margin in a quarter varies based on the nature, type, and quantum of work we execute. Quarterly results may vary in different quarter and may not be indicative of annual result or any trend it can be derived from that.

Specific to the numbers, for the half year ended, we have done ₹6,520 crore of top line against last year H1 top line of ₹6,303 crore, showing a growth of 3.4% on a half-yearly number. In Q2, we have achieved top line of ₹3,101 crore vis-a-vis ₹3,090 crore in previous year Q2.

This is also a modest 0.4% growth in top line over the previous year Q2. Now, this modest growth is manifestation of stretched payment across projects and few specific projects where certification and payments are getting delayed.

Jobs where we were declared L1 for quite some time back are still not awarded. Moving on to the EBITDA, for the half year ended, we have done EBITDA of ₹846 crore, which translates in terms of percentage 13%, and there is a growth of around 6% from the previous year EBITDA number for the half year.

For the quarter, we have done ₹401 crore. For the quarter also, we have clocked 12.9% of EBITDA percentage.

In our EBITDA calculation, we consider BG commission as part of our operating expenditure. EBITDA what we are talking about is after removal of BG commission as operating expenditure.

At the same time, in our EBITDA calculation, we include other income as part of revenue. We have explained in past that our other income needs to be understood in the perspective of our business.

Arbitration interest, foreign currency exchange gain, and miscellaneous incomes are recurring and very integral to our business, hence needs to be considered as other operating income. For the first half, around ₹161 crore is other operating income.

Now having done 13% EBITDA in H1, our full-year EBITDA should be better than our general annual guidance of around 11%. Generally, we have been talking about 11% EBITDA margin that we are going to clock every year because construction is full of contingencies and our endeavor always is to save on those contingencies and optimize the margin.

Many a times, it may not be possible to save on those contingencies. That's where we are giving a guidance of 11%.

This half year, we have already done 13%, we expect the number to be better than that. In terms of profitability, the profit before tax for the half year is ₹333 crore, which is 5.1% of the top line, and it shows a 2% growth YoY.

For the quarter, it is ₹149 crore, 4.8% in terms of percentage. Profit after tax, we have done ₹242 crore, which is 3.7%.

This again has grown 6.8% from the previous year, and for the quarter, we have done ₹105 crore, which is 3.4%. Profits for the half year have improved because we had some upside on account of arbitration award and also because of margin improvement in few projects.

We could save on some of the material cost and improve on margins in some projects. That is reflecting in the improvement in profit after tax.

At the same time, let me just reiterate some of the other aspects. In this quarter, we have done a sizable amount of provisioning in one of the project, and that's where you'll find that our other expenditure is quite high in the quarter as well as in the half year.

Despite that, we have achieved this kind of profitability number. Finance cost has increased.

We have improved our average borrowing cost in H1 FY26 as compared to H1 2025, also from what we had achieved in the last financial year overall, March '25. In H1, the average borrowing has gone up.

Despite improving on the average interest cost on bank borrowing, the overall interest cost has gone up. Also, the interest-bearing advances for the period ending September '25 has moved to around 40% in the overall component of advance we have.

This was 20% previous year September. The interest-bearing component in the total advances what we have from the customer has just doubled.

Because of that, there is a significant increase in interest cost from the customer advances. That's the reason the overall finance cost has gone up despite, like I have talked about, the average interest cost and BG commission and LC commission we have reduced, some of the other interest also we have reduced.

On a overall basis, finance cost has gone up. We expect the situation to improve once our L1 orders materialize, because large part of it is international order where the advances are interest-free.

These profitability numbers is despite that we continue to account for accelerated depreciation on our TBMs. Of the total depreciation is around 4% of the top line.

In that, close to 1.5% is on account of accelerated depreciation. Profit numbers, whatever you are looking at, is after that accelerated depreciation.

ROCE and ROE numbers, the ROE number is again after accounting for this, ROCE for the first half is 15% and ROE is around 11%. Of course, this needs to be looked at on an annual basis.

Moving to net working capital, net working capital has increased. We are witnessing delays in certification of the work done and release of payments in some projects.

This has led to increase in uncertified work done, leading to jump in working capital requirements. I'm not getting into specific about any project, but there are many projects we have witnessed that the payments are getting stretched.

Few projects, there are certification and payment issues. Now, on debt, in H1, operations had to be funded.

Debt has moved to ₹3,472 crore on a gross basis and ₹2,714 crore on net basis. On net debt basis, the debt-to-equity works out to be around 0.5 times of the net worth.

On behalf of Afcons team, I thank everyone for attending this call. Now, I request moderator to open the floor for Q&A.

Hi, good afternoon, sir. Sir, my first question is on two large opportunities possibly that we are having in front of us, one being Vadhavan Port, the other one being Dubai tunneling project.

It would be great if you could kind of share some details on the status of these two projects and how we see the timelines for these projects.

Vadhavan Port we have already submitted the bid. Technical bid is opened yesterday.

After clarifications and other thing, financial bid could get to open. Towards end of the quarter or beginning of next quarter, results could be announced there.

That is as far as Vadhavan is concerned. What is the other one?

This would be for the breakwater, sir?

Pardon?

This is for the breakwater.

For breakwater. This for the breakwater.

Breakwater, there are details of bidders and others are public information. For DSST project, it is still going on.

Bid submissions date is still away. We are in active discussion with all concerned.

Beyond that, I'm not in a position to say anything at this point.

Understood, sir. Sir, my second question is on Mumbai High Speed Rail Project.

If you could share details on how much work has already been done and what kind of revenues and margins would we have recorded until now? Has the margin recognition started on that, or is it likely to be starting once we move little ahead in the project?

We have done about 15% of the project. See, substantial part of the billing schedule is on TBM tunneling.

NATM tunneling of 4.8 km is already completed. The lining work is going on.

The TBM tunneling, all of you are aware of the machine arrival-related delays. The first set of consignment has come, it is not full consignment.

The second set has to come to make it in full. After that, TBM tunneling will start.

Effectively, the turnover will increase as we progress on the TBM tunneling. That is where we stand.

In terms of profitability, it is on expected lines. We don't expect any surprises over there.

Far, would we have recorded any margins from the project in 15% of the work that has been done, or will margin recognition start little later?

No, margin recognition typically we start at 10%. One important development on this is High Speed Railway Authority has accepted this delay of TBM arrival and other things as a force majeure condition, which is eligible for compensation to the contractor.

They've officially communicated to us force majeure acceptance.

Understood, sir. That's great.

Thank you so much. Thank you, Aditya.

Thank you.

Hi, sir. Thanks for the opportunity.

I just wanted to ask you about your L1s. Could you quantify what is your L1 position currently, and if you could give the breakup within Croatia between the road and the railway job as well as the other L1s like in Maharashtra, if you could give the breakup, please?

See, in Maharashtra L1, it continues to be the four jobs: Nagpur-Gondia Expressway package 1, which is ₹2,599 crore; Nagpur-Gondia Expressway package 2, ₹2,849 crore; Pune Ring Road, both put together, both packages, package 5 and package 7 put together is ₹4,787 crore; Croatia, first road project is 2,406; second is 2,144; railway is 6,771. With this, we have total L1 project of around ₹23,000 crore.

Of this, we do expect some of the jobs to come in the current quarter. With respect to Maharashtra, I think in the last call also, people were asking, there is some amount of uncertainty, because in some of the projects, they've just about commenced the land acquisition activity.

Therefore, there is a debate within the government whether these projects have to go for rebid after the land acquisition is completed, or whether it has to be awarded and then adequately handled, is going on. We have been engaging actively with the government, but we need to see what is going to be the final decision.

Okay. That is the situation as far as the Maharashtra projects are concerned.

All the other projects, we expect substantially in the current quarter. One or two could slip to the next quarter, early next quarter.

Understood, sir.

Some of this could happen in the current month itself.

Got it, sir. That's helpful.

Just on your order flow guidance, are you still sticking to your ₹20,000 crore guidance for the full year, or any changes to that?

100% we are achieving ₹20,000 crore guidance.

Understood, sir. Just if I could ask you lastly on your prospect pipeline, you mentioned it's ₹3.6 trillion.

Would you be able to give us a breakup of that across segments and between domestic and international?

My colleague, Mr. Hitesh, will take you through that.

I'll just give you the breakup. Out of this 3.6 lakh crore which we have talked about, as earlier trends were always there, the largest chunk lies in the urban infrastructure project.

Around 1.6 lakh crore is in the urban infrastructure. For us, urban infrastructure essentially means underground metro, elevated metro, including bridges as well.

Then in hydro and underground space, including water works, around the 94,000 crore is the projects which we see. Then in the road business, which includes road and what you call surface transport, around 65,000 crore, and marine and industrial, around 43,000 crore.

That is on the segmental breakup. In terms of geographical breakup, it is around 1/4 and 3/4.

So 1/4 is from the overseas market, 3/4 is from the domestic market.

Got it, sir. Thank you so much.

Very helpful.

Hi, sir. Thank you so much for the opportunity.

Sir, last conference call, you mentioned that you had guided for 20% to 25% kind of growth. Now we are talking about 10% kind of growth.

What has changed in this last six months? See,

we have 20% to 25%, minimum 20% is the guidance what we had given earlier. What has changed since, some of the L1 orders which I explained to the earlier querist that we were expecting to get it converted in the first and second quarter, and some of these we were expecting the work to happen in the second half of the financial year, number one.

Number two, some of the projects, there is no visibility with respect to payment forthcoming. For example, Jal Jeevan Mission, we were slated to complete the entire project in the current financial year.

We had to stop the project primarily because payment is not forthcoming. We are stuck with ₹450 crore of receivables in that project.

Few other projects of Indian funded projects abroad is also seeing some small lesser traction because the country is defaulted to India on the committed repayments and other things. Because of that, it is hanging on thin thread.

With this, there are issues with respect to this thing, not related to us with respect to the environment. Due to that, we need to take a cautious step based on our own assessment of the situation.

Therefore, we had to consciously bring down certain value of the turnover in some projects. This Jal Jeevan Mission, by now we would have progressed very well, we would have completed in the current financial year.

We have to do till about 600, ₹650 crore of work, which we are not able to take up for the simple reason money is not forthcoming. People at all levels have been met, including CM's level and all.

Therefore, that's something when the payment is going to come, all these being having a lot of uncertainty, we have to take care of the interest of the company. Taking that, we have taken a call to take some of these tougher calls, which could result in reduced turnover, but it will not compromise on our margin.

While the percentage of growth could get compromised, we'll still be growing.

Yeah. Can the revenue that was expected to book in

Yeah. I am audible now?

Hello?

Yeah. Whatever the revenue we could have booked in last six months, is it possible those revenues can be booked next year, first half?

Subject to some of the payment situation improving with some of the clients.

Okay. This is nothing to do with the company specific.

We have purposefully slowed down our execution because of the payment issue. Is it a right way to

Correct. Correct.

We have not slowed down, some projects we have even stopped. We have demobilized some projects, giving notice to the client.

Sure. Okay.

Sure. Thank you.

Thank you so much, sir.

Thank you.

Hi, sir. Now let's say this year, we will be doing a 10%.

Next year onwards, previously, we used to have kind of a 15% plus. Given the 10% lower that we are doing, FY27 can we look at a kind of a 20%, or there also at current stage, there also only 10% kind of a number one can look at?

We would like to maintain our earlier guidance of 15% for the next financial year, because this the second half of the year, orders are going to bunch

up.

Orders are going to bunch up. The pace at which yeah, go ahead.

The second half of the financial year, orders are bunching up. The pace at which it is coming, if it comes in the current quarter, then work will start in the next financial year initial phase installation will go.

If it comes in the next quarter, then it'll post-monsoon only it'll get started. Depending on that, our guidance of 15% would remain.

Got it. Now just a clarification on the order inflow.

When we say ₹20,000 crore, so that obviously would be excluding the L1 that we are. So

Not all, L1 of Maharashtra.

Sorry?

L1 of Maharashtra, excluding L1 of Maharashtra.

Excluding the L1 of Maharashtra.

Excluding L1 of Maharashtra.

Croatia itself would be a kind of close to 11,500 to 12,000. That we are considering and plus ₹1,200, around 13 and 1/2 13,500 crore already we are there, and remaining 7 and 1/2 thousand crore fresh that we are looking at.

Correct, correct.

Okay. This Vadhavan Port, the bid that we have submitted, this is the HAM one that we are talking about, HAM project?

No,

this is the EPC breakwater.

EPC. Value would be roughly around?

That client's estimated value is ₹5,120 crore.

Got it. Now our guidance in terms of EBITDA margin, obviously initially, we mentioned that it would be better.

Will it be a kind of a 13% for this year, and next year onwards again, we will be having a 11% kind of a guidance?

See, as we explained that on an annual basis, the guidance we are trying to give is 11%, because we have explained that there are many risks in projects. Our endeavor is always to improve, and we have demonstrated that as well.

For even FY25 and even for this half year, we have done in the range of 13%. Since we have already done 13%, we expect the full-year number to be better than what we had initially indicated.

Exact number, let us leave it at this point in time, because it would not be appropriate for me to give for the balance six months. One thing I can reassure you that we are not having any bad project or we are not having execution in the second half which will be less profitable.

We are definitely going to improve from what annual guidance number we have given. For the next year, it will be too early to give any guidance on profitability metrics, but on a sustainable basis, we would like to do 15% top line growth and 11% EBITDA number.

Got it. Got it.

Lastly, on the capex front, how much for this year we would be booking, and broader level next year would be how much, and also the balance sheet data point mobilization advance, retention money, and unbilled revenue as on September? See,

on capex, this year, we have planned close to ₹1,100 crore, and this has largely the TBM for the C2 package, which half of it has come, and the second consignment is yet to start. Once that comes, that's a sizable portion.

Then rest of the capex, whatever we had planned is linked to the project award. Once we get the project award, linked to that, we are going to do the capex.

That is for this year. I expect that what we had estimated of ₹1,100 crore, some part of it is going to spill over to next year because if we get the orders in say Q3 and Q4, the procurement also, the orders also will be giving in line with our requirement.

Some part will get to FY27. Initially, when we had made our budget for '26, at that time, we were looking at somewhere around 700, ₹750 crore kind of a capex for '27.

Maybe if something is not done this year of this ₹1,100 crore, that will get added to the next year capex.

Mobilization advance, retention money, and unbilled revenue as on September, sir?

See, these numbers have already been uploaded. These are part of the presentation.

These numbers are already there. The unbilled revenue and of course, these retentions, it's in the similar range what it was there.

The retention number has not gone up from say what we were having in March or in June. It's in the similar range because some projects, as we complete, we get the retention release, and the ongoing project, there is a regular recovery of retention.

Unbilled revenue, again, it is in the similar range what it was there in say June or March. In the similar range, it is there.

The third thing you were asking was about mobilization advances. For mobilization advances, as the jobs have not been awarded, we have not received those advances.

On the contrary, for the ongoing jobs, whatever advances we had received earlier, recoveries are happening. Sizable amount of mobilization advance, if we compare from say March '25 to September, the advances have come down because of the recovery.

Got it, sir. Thank you.

Thank you.

Hi. Good afternoon, and thanks for taking my question.

My first question is regarding our bid pipeline. You mentioned that we have a strong bid pipeline.

Now, in H1, just wanted to get color on the incremental bids which have, let's say, got added to this bid pipeline. In which segments would we have seen new projects getting added to the bid pipeline in the last six months, and also some color on the geography, whether it's domestic or overseas, where these new projects have come?

That would be great.

Parvez. Largely the projects got added on the urban infrastructure space.

There are certain projects which the government has announced, those got added. Certain projects got added on the hydro and underground.

That's had been the major change. Also as the tendering goes on, certain projects which were announced got dropped, and new projects in the normal course of business got added.

That's been the change why it has increased. Domestic and overseas, last time also ratio was pretty much same.

It was 1/4 and 3/4. The same ratio is there in the overseas market as well, domestic and overseas.

In terms of your other question on the geography, at some point of time, we had kind of practically withdrawn from the Middle East. Having got some of the clients agree to some change in the contract conditions and other things, we are re-engaging in the Middle Eastern segment, where we do expect some good traction going forward.

Sure, sir. Second, what would be your view on competitive intensity in overseas projects?

Do you believe there we'll find lesser competition compared to what we are seeing domestically?

One cannot generalize the competitive intensity in the overseas situation. In different geographies, different kind of competition takes place.

It depends on the client and the funding agency and the number of competitors involved. Therefore, I would not like to venture a general response to this, except saying that everywhere competitive intensity is there.

We have to choose your client and also the preferred mode of this thing, the preferred country and the client, I would put it.

Sure, sir. Lastly, just two data points that I needed.

What is the capex that we have done in Q2? Second, of our 32,700 crore order book, what is the quantum of projects where we are yet to receive the appointed date?

Thank you.

Capex we have done close to around ₹200 crore we have done up to September. On this ₹32,000 crore of order book what we have as of September, you want to know that whether the appointed dates have been given for these contract?

Yeah. Are all the projects under execution, or there are projects where we have received the LOA, but appointed date hasn't come?

No, all these projects are under execution. There is no such project for which we have not got any appointed date or notice to proceed.

Sure. Thanks, and all the best to you, sir.

Thank you.

Good afternoon, sir. Thank you so much for the opportunity.

Sir, what is our current exposure in UP Jal Jeevan Mission in terms of receivables? I think last quarter, it's around ₹422 crore.

What is the realistic timeline to expected these receivables?

In terms of Jal Jeevan Mission, our exposure is around ₹450 crore, almost similar level. We got some money in between, some small moneys.

Practically from July onwards, we have stopped the work over there. Just on the eve of Diwali, there was a meeting by the Chief Minister and other things.

Our exposure remains as it is. We have balance unexecuted job there of roughly around 600 to ₹650 crore.

Sir. How do you look at on working capital cycle by end of this year because of this Jal Jeevan impact?

See, Jal Jeevan Mission, the impact anyways is already factored. As we are not further putting money there, what I can see is it's only going to improve from here.

Also, on a overall basis, usually up to H1, one needs to fund the projects. Now since we'll be approaching towards the year-end, things will gradually improve, because the customers, they will have their own budgets and they need to exhaust all that during the financial year.

We'll be getting payments from the customer, and things will unwind.

Sir. Sir, out of ₹1,100 crore capex, how much capex for these two tunnel boring machines, and when we expect effective deployment into the projects?

See, the exact number, we will not be able to give you, but this number is anywhere between say 600 to ₹700 crore of these TBMs along with all this attachments it requires. It is dependent on when it is sailing from China, the second consignment.

We are hopeful that maybe this month, it should happen. If it sails this month from China, I think by say end March or maybe April, we should commence the executions.

Sir. Sir, if the TBM machines is getting delayed, which other projects is going to impact in next two or three quarters?

This is only one project, C2, that high-speed railway project undersea tunnel. All other projects, we have TBM in place.

Sir. Sir, my final questions, what are the strategic initiatives you're going to take to reduce promoter pledging?

What is the road map? I am not clear about your question.

Sir, what is the strategic initiatives you're going to take to reduce promoter pledging? What is the road map?

On promoter pledging, we are not taking any initiative. It is with the promoter, it will not be appropriate for us to comment.

Sir. Thank you.

Good afternoon, sir. Sir, just on this margin profile, we've seen a very strong 1H kind of a margin at about almost 13%, which is much higher than our guidance per se.

For this year, how do you see the margins moving per se, particularly in the second half? As some of these conversions from L1 to actual time to begin work is delayed, will that impact the margins that we've quoted for some of these projects, or are they escalation-based, fixed price?

Can you just throw some color on that?

No, with respect to margins, my CFO will respond. With respect to this thing, in terms of Maharashtra projects, if you take it, there is an escalation mechanism right from the day we submitted the bid.

In fact, 21 days before submission of bid onwards, it starts. Okay.

With respect to the overseas project, which we are L1, the contracting timelines and award timelines itself is like this, 120 days from the date of bid opening, all these are specified. Therefore, it's all factored in already, we don't expect any impact on the margins or related things.

On the EBITDA guidance, Ramesh would respond. See, Bhoomika, we have already talked about the EBITDA margin we have done for the half year, 13%.

As confirmed earlier also, we are not having any, bad project as such in this Q2 in the second half or any less profitable activity to be executed in the in the second half. We expect, our EBITDA margin to be better than what we had indicated at the beginning of the year at 11%.

It should be definitely better, because half year, we have already done 13%. Exact number, we are not giving you, but I think, we can expect that we should be doing better than what we had indicated.

Sure. This quarter also, the other income was slightly higher.

Was there any arbitration or forex gain that was booked in this particular quarter?

See, forex gain is there in this quarter. As you were asking about the overseas project, in overseas project, what happens that even though in majority of the project, we don't get any escalation, but then the exchange gain comes as a escalation measure, because on a continuous basis, we are seeing that say a dollar or a euro appreciates against Indian rupee.

We have seen in some of the project over a period of say 5, 6 years, the exchange difference itself becomes a very sizable portion of the contract. Likewise, things accrue.

It is there in this quarter as well.

Okay. Would it be possible to give out the number of forex gain for this particular quarter, which is related to the projects?

1 minute, I'll give you that number. Forex gain is around ₹59 crore.

Okay. Got it.

Understood. Sir, just lastly, I know we've discussed a lot on the call in terms of the working capital rising and thereby the debt also has risen.

While we will get some of these advances when we get some of these orders, it should help in terms of reduction. With the money stuck particularly in this JJM orders, do we expect any relief per se within this year, or you think working capital to that extent will remain elevated itself?

In terms of Jal Jeevan Mission payment, while we are not in a position to commit, Chief Minister himself has assured he will clear all the dues, as he wants the project to be delivered well on time. That is something, I think, the state level, they are working.

Therefore, we do expect some traction coming in in next 2 to 3 months. Today's state-level finances are, I would say, strained.

Because of that, probably, there has been some delay. I'm not very sure.

I'm not able to comment.

Okay.

Bhoomika, just to add, see, even last September, we were at a similar kind of debt number, not that this number is different. You had seen how it has unfolded by the year-end.

That's the trend. Generally, it happens like that.

Understood. Fair point.

This helps. Thanks so much.

Thank you. Thank you.

Thank you.

Hi. Thanks for taking my follow-up question.

I think you had mentioned there was some exceptional expenses that we had booked this quarter as part of our other expenses. Would it be possible to get the quantum of that?

What do you want to ask, Parvez?

What was the quantum of that exceptional expenses?

It is close to ₹100 crore.

Okay. Sure.

Thanks.

Thank you.

Yes. I would just like to thank all the participants on the call, and particularly the management for giving an opportunity to host the call.

Thank you very much, sir, and wish you all the very best. Any closing remarks from your side?

Thank you very much. Thanks for the continued interest and support.

We definitely look forward to all of you stay with us and earn on a long-term basis. Thank you.

Thank you, sir.