Enviro Infra Engineers (NSE:EIEL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Enviro Infra Engineers Limited q one FY twenty seven earnings conference call. Before we begin the conference, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing star, then 0 on your touch tone phone. Please note that this conference is being recorded.

0:47 I would now like to hand the conference over to mister Mani Chen, managing director of Enviro Infra Engineers Limited. Thank you, and over to you, sir. Thank you, Manu. Good morning, everyone. I would like to welcome you all to our Q1 FY twenty seven earnings call. On call today with me is our investor relation team from AdSectors. We have shared our earnings presentation and press release, and I hope you have had the opportunity to go through it. On behalf of the entire team, I am pleased to share our operational and strategic progress for the first quarter of FY twenty seven. Q one FY twenty seven continued to reflect the transformation that Enviro Infra Engineers has been building over the past year.

1:41 As we strengthen our core position in water and wastewater infrastructure while expanding our presence across renewable energy and battery energy storage systems and wind EPC segment. Our water and wastewater treatment business along with our operation and maintenance portfolio remained the foundation of our execution during the quarter. At the same time, our renewable energy platform continued to gain momentum with increasing capabilities across solar, wind, and battery storage. Our focus remains firmly on disciplined execution across all our businesses. In water and wastewater, we continue to strengthen our technical capabilities, expand our geographical presence, and pursue larger and more complex projects.

2:38 In a renewable energy invest, we are focused on building a scalable platform supported by our capabilities across solar, wind, and energy storage. We believe the convergence of water infrastructure, renewable energy, and energy storage presents a meaningful long term opportunity for Enviro Infra Engineers. As an engineering and technology driven infrastructure company, we are focused on leveraging technology, engineering capabilities, and execution expertise to address evolving infrastructure requirement. Our priority is to convert these opportunities into sustainable growth while maintaining execution discipline, healthy margins, and prudent capital allocation.

3:29 Now turning to our order book and execution pipeline, our total order book stands at approximately 6,721 crore, providing strong revenue visibility for for the coming periods. The order book comprises to be 3,694 crore in water and wastewater treatment segment and $3,007.27 crore across renewable energy invest. Within the water and wastewater segment, we have 2,696 crore of execution orders and around $9.98 crore o and m orders. While in the renewable portfolio, we have execution orders worth rupees 1,948 crore, while ICT and O and M comprises projects worth 1,079 crore.

4:24 This diversified order book provides us with a strong execution pipeline and allows us to participate across multiple segments of environmental infrastructure and clean energy value chain. During the quarter, we have secured a new EPC and o and m contract worth 113 crore from Sardash Rover, Narvinda, and Nidam Limited in Gujarat, further extending our water infrastructure portfolio. Through our step down subsidiary, which is Suryo Gujar Limited, we have secured a renewable energy contract worth 207.5 crore for land aggregation and balance of plant works for a hybrid wind and solar project.

5:12 This further strengthens our capabilities in the renewable energy value chain and provides additional execution opportunities through the platform. During the quarter, we also secured two hybrid annuity model projects in Varanasi, Uttar Pradesh under Namami Gambia program with a combined value of rupees $2.56.9 crore. These include a 60 ml d series treatment plant at valued at rupees $1.30 crore and a forty forty five ml d series treatment plant at D D O number valued at $1.26.8, sir. Both projects have eighteen month construction period followed by a fifteen year o and m period.

6:02 With these additions, our HAM portfolio has now increased to five projects further further extending our long term revenue visibility and the quality of our order book. Now on the execution and business outlook side, our focus remains on converting the strong order book into revenue through disciplined project execution. Our water and wastewater business continues to remain the core of our operations with execution spread across multiple states and project categories including WWTPs, WSSPs, and ZLD projects. The core water and wastewater treatment segment contribute approximately $2.55 crore representing 71% of the consolidated revenue, underscoring its significance to the overall business.

6:57 At the same time, our renewable energy pro... Platform is also gaining meaningful scale. During q one f y twenty seven, renewable segment revenue contributed approximately 104 crore, which is around 29% of the consolidated revenue, reflecting the increasing contribution of the business to overall operation. As mentioned, our renewable capabilities now span solar, wind, and dust with both EPC and IPP opportunities. We believe the combination of these capabilities provide us with a broader platform to participate in India's ongoing foundation towards cleaner and more flexible energy infrastructure.

7:44 Going forward, our priority remains to maintain execution momentum across existing order book, pursue quality opportunities, and ensure disciplined bidding and capital allocation. On the financial performance side, for f y... For q one f y twenty seven, revenue from operation stood at $359.03 59.2 crore, registering a growth of 49% y on y, given by a continued execution across our order book. EBITDA stood at 75.7 crore registering a 17.87 Y on Y growth. EBITDA margin stood at 21.07% compared with 26.65% in q one f y twenty six and eighteen point seven percent in q y q four f y twenty six.

8:40 The movement in EBITDA margin reflects the current project and execution mix along with the impact of input cost. Profit after tax stood at rupees 45.2 crores registering a 6.47% Y on Y growth, while PAT margins stood at 12.38%, broadly stable sequentially compared with 12.37% in q four FY twenty six. Overall, the quarter reflects a strong revenue growth, continued execution momentum, and an increasing contribution from our renewable energy platform. Looking ahead, we see Enviro evolving into an integrated engineering services specialist across various industry verticals, wherein we can leverage our technological and project expertise on a wide range of projects.

9:39 We remain confident in our ability to execute the existing order book and continue to build a quality pipeline of opportunities across water infrastructure, renewable energy, and this. Our focus for the remainder of FY twenty seven will remain on strong execution, working capital discipline, maintaining healthy margins, and creating sustain... Sustainable long term value for our stakeholders. With that, I would like to open the floor for questions. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the attached tone telephone.

10:24 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue is assembled. We have our first question from the line of from Sequium Asset Management. Please go ahead. Hello, sir. Can you hear me? Yes, you are audible. Yes, sir. My first question is with respect to the margin side. Gross margin was declined significantly. What was the main reason between the decline of gross margin?

11:14 If you would have seen our earning guidance for current financial year, since the start of this work, the input cost, it has gone for an increase. So there is a slight reduction in our guidance in the EBITDA margins. Earlier, we used to give a margin guidance in the range of 22 to 24%. For the current financial year, we have lowered our guidance a bit in the range of 21 to 22. The results reflect that the guidance which we have given is in line with the actuals.

12:00 Our EBITDA margins right now are 21% at the stand alone level, and we are happy to confirm that our EBITDA margins have remained at the same level of 21. Even at the console level, where it is getting consolidated with the business of renewables. So that says that the margin... EBITDA margin, which we expected somewhere in the range of 19 to 20% with the blend of renewables. So we have been in a position to achieve margins slightly better than what was the expectation earlier from our side. Understood, sir. So, basically, the decline in margin is primarily because of raw material and not because of the excess competition in the industry? No. Is my understanding Because of the increase in the raw material cost, it is one.

12:57 It is a blend of renewables, second. And third, a lot of development work which was going on in the last financial year. We were increasing our team size since we were getting new projects with a very healthy order book that we do have in... For the water and wastewater treatment sector itself as well in in in our company. Our employee cost, if you will see, it has gone to an extent of somewhere around 7% in q one, which earlier used to be in the range of around three to 3.5. So we expect a prudent level of somewhere around five to 5% of the employee cost when we will move ahead in this financial year.

13:44 And then the finance cost as well, which right now reflects at around 4%, but at a blended level during this entire financial year when the top line is expected to be in the range of 2,000 crore. So we can expect this financial cost to be also to be in the range of three to 3.5%. So with this, definitely, our margins, that margins, which are right now looks at 12.5%. So a delta of somewhere around 1.5 to 2% is always visible. So that says the movement in the company is in in the right and we are going good. Understood, sir. My second question is with respect to the order book. You gave a roughly rough split between the water water and waste, water EPC business as well as the renewable EPC business. I just want to understand what will be your timeline to execute these projects.

14:40 And on the OEM side, for how long are we supposed to do on an average? Are we supposed to provide OEM OEM to the end user? First of all, with respect to the execution order book that we do have in our hands. So 2,700 crore is the order book which is available in the water and wastewater treatment segment. The timeline of execution here is eighteen to twenty four months. So, basically, if I say this entire order book of 2,700 crore is to be executed or in a period of next two years. On this to the renewable side, this total order book of 2,000 per hour, it is to be executed over a period of twelve to eighteen months time.

15:33 Now coming to operation and maintenance, when we talk about the water and wastewater treatment segment, all the turnkey projects, whether it is EPP, whether it is HAM, all are blended within operation and maintenance. So this order book do come along with the execution order book at the start itself, which is span the period of five to fifteen years. So at an average level of ten years, we can say roughly around 100 crore can be the top line from the operation and maintenance. The operation and maintenance in itself gives a better EBITDA margin, but the quantum or the value of this operation and maintenance in comparison to execution, that will remain to be in the range of three to 5%.

16:23 Regarding the o and m order order book for our renewable segment, it it expands out either from the EPC, which is for a period of five to twelve years, and then the IPP projects where the IPP income will come over a period of twenty five years. So this is how the entire order book will move. Understood, sir. I'll join back in the queue. Thank you, sir. Thanks a lot. Thank you. We have our next question from the line of from. Please go ahead. Hello, sir. So can you quantify the impact of the material cost increase that led to the margin decline versus what you said, the project mix.

17:14 And also if you can give us split between the segments, the EBITDA margins for solar, wind, and water increasing. First of all, if I talk about the this profitability in the different segment, water and wastewater treatment segment, we expect EBITDA margin somewhere in the range of 21 to 22%. And in the renewable segment, which is spend over solar, wind and gas, the EBITDA margins shall be in the range of 15 to 18%. So at a blended level, we can expect the EBITDA margins to be somewhere in the range of 19 to 20%.

18:02 There can be a different split in the waste and waste water and water segment as well, which is spent over EPC and even the type of water or EPC of serious treatment plants or EPC of common efferent treatment plants. So this is the blend or the product mix across that quarter, which will drive the right EBITDA margins. So at a blended level, we can say around 20% is the EBITDA level, which we can achieve in the entire financial year. Oh, sorry to interrupt you,. Your voice is breaking. Can you hear me? No. It's still breaking.

18:48 Can you please move to a better reception area? Is it better now? Yes. So in the new order that we want, is there a increase in raw material cost part two? The raw material price impact is somewhere in the range of one to 2% of the overall top line of the company. So this is what we have accounted for in terms of our guidance of EBITDA margin low... Which we have lowered to an extent 21 to 22% right now in place of 22 to 24%, which were predominantly available in the previous years. Okay. So the cost will be burned by the company in the new orders as well.

19:37 Right? There is a price variation clause in the tender as well, which is linked to WPI and CPI index. There is some price which gets covered with this price variation and some part which we are required to absorb. There was one point of time when we were seeing the war has just ended and things will settle down, and then definitely the margin again could have been... It could have improved. But we will have to just wait for it. Some of the price increase definitely we may have to absorb in our EPC price itself. Understood. And just lastly, what was the contribution of wind... Revenue from wind segment? And in renewables, can you give us split o and m and EPC?

20:26 Yeah. Wind segment in q one has contributed 80 crore out of $3.59 crores, And the revenue, this order book is basically 2,000 crore execution order book in renewables and around 1,000 crore o and m and IPP revenues order book in the renewable segment. That's it from my end. Thank you. You. We have our next question from the line of Sudip Anand from Systematics. Please go ahead. Yeah. Good morning, sir, and congratulations for the good set of numbers. So just few questions. One, sir, we have seen that our overall profitability got impacted because of the higher interest cost.

21:18 So I know this is largely because of the IPP, but what could be the peak date we are looking at current... Based on the current order book that we have to execute? Good morning, sir. Profitability has got impacted because of one is as I explained, it is the cost impact since the prices have gone for an increase. There is a blend with renewables, but, unfortunately, at least for this quarter, there is no downside which we see from the renewable in renewable order book, which we have executed in the the current quarter.

22:03 So the total revenue mix, the profitability, as we will go further in this financial year, the revenue right now is somewhere around 20% as we see in the guidance in the first three quarters, it remains to be somewhere in the range of twenty twenty twenty, and the last quarter accounts for around 40% of the overall revenues in the financial year. So as we will know ahead, the cost, the indirect cost, which is employee cost or finance cost, which will be... Gets reduced as a percentage of sales. So the profitability is expected to improve slightly. Right.

22:50 Okay. And so can you just give some more color on the bidding pipeline in the both water segment and the renewable and what could be the exit FY twenty seven exit order book that you are looking at? Presently, the projects for which the bids are already submitted and for which the evaluation is going on, it is somewhere in the range of 3,000 crore. Apart from this, the... There is a robust pipeline, which is available in form of bidding. So we are looking for projects somewhere in the range of 6,000 to 7,000 lot crores for which bids have already been invited, and we'll be submitting our bids.

23:38 So this way, the order book pipeline in the water and wastewater treatment segment remains to be very bullish. In the renewable segment, since the order book is already at a very decent level for the current financial, and we see the next financial year as well. So we are not going big at all in the renewable segment. Rather, our focus will be first to go for execution in solar, wind, best, all three segments, and then we can look forward to a further increase in the order book. Nevertheless, we expect some good orders in the wind EPC segment wherein we are looking for some good projects of around 600 to 800 crores further getting accumulated in the company.

24:33 Okay. Thank you. Thank you so much, sir. Thank you, and all the best. A lot. Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. Anyone who wishes to ask a question may press star and 1 on the touch tone telephone. Question is from the line of from Centrum Broking. Please go ahead. Yeah. Thanks for the opportunity. Sir, what is... In terms of balance sheet, what is the status of this disable or unbilled revenue at at present? The, I will say the position is not improved right now.

25:19 The position is still, I will say, is bloated. But we are hoping since the funds are already allocated. Even in the last quarter, we had confirmed the movement of funds should be there, but it remains low. It remains low. The working capital cycle is still remains loaded. I don't have the exact numbers, or I cannot see the numbers which are there. But it is there. But by September, when we will come out with our cash flow provision, I am quite sure that we'll be sitting at a healthy cash flow level. Still, what I will say is the cash flow position in the company that is stable.

26:05 We are able to meet all all our liabilities well in time. There is no slippage at all with respect to any of our liabilities. There is a slight slowdown in the cash flow receiving from the government clients, but we do hope the cash flow title will improve. Okay. So with respect to this view,, the second tranche investment for the beginning 25%. So when do you expect it to... It will complete, and what is the target revenue for this year, and what is... What kind of pipeline you're looking in terms of order book? The total acquisition, which we did in Limited, the total acquisition value was 311 crores.

26:55 The first tranche of 111 crore has already been paid. The second tranche of 100 crore will be paid after f y twenty seven sometime July. So it will be based on the KPIs which we have to see in terms of the revenue, the bottom line, and the order book, which will be available. So there can be a slight increase or decrease in the amount of payments that will be paid at that point of time. It will be paid through a mix of internal accruals and some debt, which we will take as the acquisition funding. At least at present, 80 crore is what Suyog has done in the first quarter. Our expectation is in the range of 400 to $4.50 crore, but we will do as revenue from Suyog Limited.

27:52 In terms of order pipeline, the present order pipeline in in Vend EPC is somewhere in the range of 800 crore, and we do expect another 500 to 600 crore projects, which will come in when the EPC segment for this financial year. And margins in this segment is close to 40, 15%? If I talk about EBITDA margin, these are in the range of 15 to 16%. At level, I will say it is 12% plus, which we can do. Okay. Okay. So, I mean, this year, FY '27, we will consolidate in terms of profitability about 51% money, and the 75% impact in terms profitability will come in FY '28. Right? When we complete the second task subject to achieving the revenue target of the quarter '26 or on the target.

28:51 That is the right FY '28, after FY '28, the... It will be third tranche. So there were three tranches. First tranche already paid, second tranche after FY '27, third tranche after FY '28. Okay. Okay. So keyword number, we are on track to achieve whatever target we have set for Yeah. Yeah. Yeah. We are well on target in this. Okay. Okay. That is all from me, sir. Thank you. Thank you. Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1. Next question is from the line of from Intelligent Prosperity Solutions. I want to ask you, sir, looking ahead to FY 'twenty, do you see any possibility to possibly the margin moving to a structural higher levels from the current 20% to twenty percent range?

30:03 There is always a possibility of improvement, but when we give any of the guidance, it is based on a surety level that the minimum margins which will be achieved. So at a blended level where we talk about water and wastewater segment and then the renewable segment as well, so we look forward to EBITDA margin in the range of 19 to 20%. Then these are EBITDA margins I have already explained. In the water and wastewater treatment segment, we expect it to be in the range of 21, 22, and the renewable segment, 15 to 18%. Okay. Okay. Thank you. We have our next question from the line of Ankur Shah, an individual investor. Please go ahead.

30:56 Hi. I hope I'm audible. Sir, I have a quick question for you. As an individual investor, last year, there was a massive delta between what the management committed and what was achieved. I think we gave over about 7% year on year target. How confident are we this year in terms of execution and achieving the top line guidance of what you've been providing? And my other question is that, are we chasing growth at the cost of margins? Or is it the genuine case where you mentioned the raw materials and the employee costs have gone up, which has significantly impacted your bottom line? And and I just want some clarity over there. Let me explain how the last year had panned out. At the start of the last year, we were going ahead with an order book in hand, which was approximately 1,200 crores.

31:50 So if I would have given any guidance based on that number, 50 to 60% conversion, the total revenue guidance could have been in the range of around 600 crores. However, a lot of projects were there for which the bids were submitted, and we were expecting the results. The result has started coming, but the order book accumulation, the process remained a bit slow. So during the entire financial year, we expected the order book which fell and then the revenue from the respective order book that will also increase. However, that was not the case, and that didn't come through. Our total revenue guidance, now if I say at a percentage of the starting order book, it is more than 90, 95%.

32:44 So that means I will say company has not done bad at all. Now in terms of the EBITDA margins, our guidance has never been higher than 22 to 24%. We are one of the companies where we are in a position to maintain that level of EBITDA margins, expecting margins even more than that. At least I have not... Never given that level of guidance. And what we could foresee is that the margin could increase as a person... As a measure of efficiency levels that we never rule out or as a measure of the product mix. Now coming to the current financial year, based on the base pipeline which was available with us, we are sitting on a very, very healthy order book, at least at present.

33:39 Our reauthor and wastewater treatment order book in itself is more than 2,700, and then the renewable segment guidance. When we look forward to to achievement of the top line and the bottom line, there is an investment of 75 crore, which we have done in the renewable segment. And then if we see the profitability which will be coming out of it, and we understand the ROE levels, ROE level, if you see our guidance of around 700 crore and if we are able to achieve a profitability from the renewable in the range of around 60 to 70 odd crores, You can just imagine the type of ROE that we can get from that segment.

34:26 Now coming to to water and wastewater again, basically, at this healthy order book, we have maintained a conservative conversion rate of 50%, and we are expecting 1,300 crore to be our top line. So we look forward to maintaining our guidance. There has been a slight increase in the input cost, The development which happened in the last year, if you could just see to our presentation at the time when we had gone public, our total team size was around 900, which has now increased to 2,300. It is just because we were getting the order, and we wanted our team to be there so that we can execute the project as we are doing very efficiently and in a time bound manner.

35:18 So that way, at one point of time, our costing has increased slightly in terms of the employee cost. We do understand when we will go ahead and we'll complete this financial year. As a percentage, definitely, these costs will come down. It will reflect on the improved profitability. However, our guidance will remain in the range what we are projecting, and we do hope that this year, the guidance is based on the availability... Available order book, and we will be able to maintain the guidance. Thank you, sir. Best wishes. Thanks a lot. Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and 1.

36:04 Anyone who wishes to ask a question may press star and 1 on the touch tone telephone. We have our next question from the line of Manish from Keynote Capital. Sir, I just have two questions. One question is on JGM. So what are the receivables we have from JGM Mission? And any update on JGM point o? And the second question is on our cash flow. So are we going to be a cash flow CFO positive in h one balance sheet? Right. First of all, talking about the JGM. As we have already mentioned in our all previous interactions, JGM constitutes very, very small percentage in our order book or the receivable segment right now.

37:06 There was only one portion of the order book which we took in empty, and then we continued our execution. At present, that trial and commissioning part is going on for which 15 to 20 odd crores is what we bill, and then the payments get released. If we talk about the GGM side as a whole, as we understand GGM and GGM two point o right now, these are are now streamlined and the funds are releasing. Fortunately for us, we were working in MP, and the funds didn't get installed even in the last financial year, and we were moving smoothly in... Under JJM projects as well. So the total component of JJM either as unbilled receivables or as order book, to my understanding, will not be more than $151.60 odd crores in our total balance sheet.

38:04 Coming to see on this operational cash flows, operational cash flow definitely looks to be on our positive side. Even in the last two financial years, if we take into account the service concessionaire receivables, which is a part which is receivable over a period of fifteen years, and, you know, it is taken up in the operational cash flow activities itself, and it goes negative by somewhere around 85 crores. But even as as per the audits, what we do, we do expect that cash flow should... Operational cash flows should turn positive. We do hope, but we cannot give any guarantees on this. We are hoping lot of funds which are going to be released shortly based on that OCF should turn positive.

39:01 Okay. And we stick to our guidance of EBITDA margins and that was even in last quarter. So that is around 21% or 21 to 22% in EBITDA, and was somewhat around 13.5 to 14% for this year. So do we stick to that guidance? This guidance is for the revenues from water and wastewater treatment segment. So on a stand alone basis, these will maintain our guidance. At a blended level, the EBITDA margins could be in the range of 19 to 20% with profitability in the range of somewhere around 13 to 14%. Alright. That's it from my side. Thank you.

39:49 Thank you. We have our next question from the line of Raman from Sequium Investments. Please go ahead. Hello, sir. Can you hear me? Yes. You are audible. Sir, my question is with respect to wastewater project. We have around 400 crores of order. If you... On a EPC basis, you said the order execution in wastewater segment lies between eighteen to twenty four months. So can you specify how much time will it take for our our project to be executed? One is that. And second, on the water supply project, we have a very small order book from that side, 100 crores.

40:40 So will that be executed in this year? Or I just want to understand the execution cycle for this water supply project. Is it like a quarterly basis execution cycle, or is it is it like a a... Again, one or two year execution cycle for this? Okay. First of all, with respect to the HAM projects, in case of a HAM project, there is a process prior to defining or declaring the effective date. Effective date specify the start of physical execution of the project Prior to which, there are certain condition precedent, which are required to be fulfilled on all parts.

41:29 All part means it is concessionaire. In our case, the funding agencies, NMCG, and the department with whom we are executing this project is UP. All are required to have their condition, precedence, satisfied. The general timeline, once a project is awarded, it is five and a half months. One and a half months for the creation of SPD, and then another four months for completing the design and drawing, and in that particular time, to achieve the financial closer. After that, the execution period ranges between eighteen to twenty four months as the projects have been awarded to us across these five projects. So the timeline will move like this. And once we...

42:18 After the construction completion, there is a three months timeline for the stabilization of plant and to achieve COD. COD is the commercial operation start date by which we achieve the performance guarantees based on which that plant has designed. And once the COD is achieved, the fifteen year operation and maintenance start during which the operation and maintenance payments along with the annuity along with interest that is released on a quarterly basis. Now coming to the water treatment order book under JGM, which is somewhere around 100 crore in our book, We expect that this entire...

43:04 It's a it's a small portion of this 1,200 crore order book which we were executing, and we are expecting that this particular order book will be completed within this financial year. And once this gets completed, the operation and maintenance of ten years that will commence. There are total five projects. The five projects will get commissioned one by one. Out of which, first of the project is where we do expect that by October, the commissioning will be recorded and the operation and maintenance will commence. So this is how this water side, this this order book will move further. Thank you, sir.

43:57 We have our next question from the line of, an individual investor. Please go ahead. Am I audible, sir? Yes. Yes. Audible. Very good afternoon, sir. If I remember correctly, in the last one call, you had guided for a revenue of consolidated revenue of INR 2,000 crore in FY twenty seven and a net profit of around $2.60 to $2.70 crore in FY twenty seven. Am I right, sir? 100%. Right? So, sir, as per our history of execution, sir, q one constitutes around 21% of our total turnover.

44:44 So if we follow this, our our turnover should be in the range of around $404.20 crores or 25 crores, sir. But this quarter, we delivered around INR $3.60 crores. So my question is, sir, what was the reason of this lower than expected execution? And do you still stick to our guidance of around INR 2,000 crore turnover in FY twenty seven, sir? Yes, you can confirm, sir. Sheetal, first of all, as our guidance, when we say 20% should be the top line, there is a delta of one to 2% on either side, which is possible. So if I say if we have achieved $3.60 crore as the top line during this quarter, then we are well on target.

45:34 Let me tell you the reason for this. There are... We do have some best projects from NTPC, which is a three nine thirty megawatt hour project. The... This procurement of the materials for... Against this particular order that will commence in q three. So there will be a significant jump q three and onwards when the top line will... It is likely to swell. So we are well on target of achieving this 2,000 crore. We don't find any slippages. Wherever we have given our guidance, whether it is renewable, a combination of that solar, IPP, or best ITP, best EPC.

46:28 So we are well on target. We are in a position to achieve that top line of 2,000, and we stick to our guidance of $2.60 to 7... $2.70 crore at levels. Very nice to hear from you, sir. Sir, my second question is regarding the order intake, sir. Can you please tell how much order you have we played did in this quarter, sir? And what is your strike rate, sir? Or or I may even say how much order info you expect in f I twenty seven... Remaining part of f I twenty seven? Right. First of all, our present bid pipeline for which the evaluations are already undergoing, these are somewhere in the range of 3,000 crore.

47:26 Another 6 to $77,000 crore projects are available for which bidding is going to happen in a short time, which are already invited and the bids are being submitted. The strike rate of company in the last financial year has been in the range of somewhere around 20%. So we can expect an order book and order inflow of somewhere around 2,500 crore to be there in the current financial year. This was our guidance as well. And now if I say out of this 2,500 crore, $2.56 crore is what we have got in the current financial year till now. There are two hemp projects at Varanasi totaling $2,256 crore. So we do expect that 2,250 crore that we expect to get in the current financial year. We are well on target, and we'll...

48:23 We look forward to achieving this guidance again. Okay. Very nice to hear from you, sir. And my sir... Sir, other question is, sir, regarding receivable. You highlighted that there is no problem, but your receivables, working days are bloated, if I heard properly, sir. So do you think by September, it will be clear, sir? Or there'll be no bad debts or anything you foresee? First of all, the the working... There will be a prudent working capital cycle. So we want ourselves to get shifted to that prudent working capital cycle. We are definitely hoping that the funds will flow from the government side, and the working capital cycle will get eased out.

49:14 This is one part. Second part is with respect to the cash flows which are available with the company. Even at present, even with the bloated working capital cycle, the company is having a significant unencumbered funds available. So that way, we are comfortable. We are completing our projects. We are making the payments well on time. So there is no hindrance or any slowdown anywhere. In the history of the company, there has never been any bad debts, and we continue to maintain debt levels in future as well. Okay, sir. And last question from my side. Sorry to interrupt you, Ashish. You may please request to rejoin the queue.

50:02 Only one question, sir. If I pause... Only last question. Okay. Thank you very much, sir. Sir, last year, we had a problem in execution as we could not get the order in time. So we were not able to meet our target. This year, we have order in hand. So I just want to reiterate, sir, do you foresee any other headwinds which may not allow us to achieve this target? Do you foresee any headwinds, sir? In case of an EPC company, the top line is a derivative of the order book... Available order book. So we were going a bit aggressive, and we look forward to that the order book would increase significantly in the initial months, and then we will be in a position to execute against that order book.

50:58 Which is not the normal industrial norm. However, if you look into the revenue in comparison to the order book available at the start of the financial year, then the conversion rate is in the range of around 90, 95%. So that never says there is any slowdown at all with respect to the execution. Execution has always been the key forte of the company, and their entire controls are available. We don't foresee any slippages. Current financial year, the order book is already available. We are well on it, so we can keep on moving. And even if no new order comes, then this top line of 2,000 crore is what we can easily achieve from the present order book available with us.

51:51 Very nice of you, sir. On behalf of all our small shareholder, I wish you all the best to achieve your target this time, sir. Thank you very much, sir. Thanks a lot. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin with you. I repeat, please restrict yourself to only two two questions per participant. Next question is from the line of Vidisha from. Please go ahead. Hello? Any revenue guidance for this year? The revenue guidance is 2,000 crore for this financial year.

52:42 Thank you. Thank you. We have our next question from the line of Saurabh Bhagat, an Investor. Please go ahead. I think my questions have been answered in the in this one. Thank you. We have our next question from the line of Saurabh Gupta, an individual investor. Please go ahead. Hi. This is. Basically, company, I'm I'm invested in this company since last two years. Last time, actually, we used to get the orders in the same year, and we try to execute the order, some of the order in the same year. So that actually the revenue visibility was there.

53:34 Now this INR 2,000 crore revenue guidance was like a it's still we already have the orders in hand. I mean, what is the best strategy we can have or the that, okay, we can execute much more or get a revenue of around, let's say, thousand 500 or 3,000, what do we need to do it? Because previously, we used to do it. Let's say, we get the orders this year, and we try to execute and get some portion in the revenue side. Is it is it the same case or the story got changed now we are so conservative in guiding our revenue because last year we missed it? Or still we can assume like, a North Star's guidance, a 2,500 or 3,000 karat revenue this year itself.

54:31 Even, like, we used to do it in two years back or one year back. When... Whenever we give any of the guidance, so we do expect that we will meet at least this threshold level. So for this financial year, that threshold level is 2,000 crore based on the availability of orders that we had at the start of the financial year. Out of the 2,700 crore order pipeline with the execution period of two years, so 50% is the conversion which can be expected out of that order book. So 1,300 crore, $13.50 crore is what we do expect on a straight line basis.

55:23 What happens is whenever we move on for the execution of the projects, there are certain projects which are just on the verge of a start. There are some projects which are in a growth phase. There are some projects which are under execution. So there are different stages of the project wherein we cannot predict how the project can move. So as a ratio, since the size of the company at one point of time, we used to be 500 or 700 odd crores. So that movement seem to be quite fast, but now at a blended level when we say... So blended level, first, we look forward to the guidance which we gave. So that guidance should meet, and then we would like to outdo that guidance as well.

56:13 You rightly said what we can do to increase our top line to 2,500 crore or 2,700 crore. I just explained during the last financial year, though our top line was flattish, however, a lot of development work was going on in the company. It was in terms of team building. It was in terms of getting the new orders from the water and wastewater treatment segment. We were integrating into renewables. We acquired some assets of solar. We waited for this best project, then we won projects from NTPC, best EPC projects. Then we acquired best...

56:59 This ITT project. Then we acquired solar... This wind EPC company, which is. So a lot of development has happened in the last financial year. The results of which will accrue in the current financial year, 2,000 crore is the guidance we we understand we we will achieve at any cost. We look forward to how doing that number as well. But as a guidance, I will maintain that level at 2,000 crore. Right? Second question is, like, a desalination plant and the export opportunity over overseas opportunity. Are you going... Looking in these two opportunities? Because your competitors are going in those two opportunities.

57:49 In the previous con calls, if you would have heard, we were maintaining that we will go for the geographical expansions. We will go for the higher value projects, higher capacity projects. Then we confirmed we will wait for some of the CVG projects or bio based electricity projects, which we were executing as a part of our STP projects. And then, ZLD. So now if I talk about, basically, geographical expansion, now we are available in 17 states. ZLD, yes, last year, we got one of the ZLD projects, which we are executing in Maharashtra for a textile area,, and Parvati near Kolhapur.

58:41 Our projects of biogas to electricity and CVG projects, two projects have been completed and commissioned. Now we are... Have entered into one CVG project from the agricultural waste, which we are doing as a part of developing a cattle feed shelter cattle shelter in Envi. Here, we have got a vast land of around two seventy five acres, where we will be developing the cattle shelter. Their feed stock will be there. Agriculture residue in form of nepiographs will be there, and we will develop a solar farm as well. So this is how we have integrated ourselves over the period. Going forward, we are... We have already submitted bids overseas.

59:31 We are waiting for the outcomes, and we are again looking forward to some diesel projects as well. So if we see by the end of this financial year, the overseas projects and the desalination project should also be there in the company's. Perfect. Thanks. Thank you. Perfect. You. We have our next question from the line of Daksh Malhotra from Agra Global. Please go ahead. Yes. Good afternoon, sir. How are you? Good afternoon. Good. How are you,? Very well,. Thank you. Yes, sir. '26 was a tough year for EPT, and no doubt, you know, we'll have to appreciate why we were not getting enough tenders and orders in the water wastewater.

1:00:28 We did quite well in diversifying our business and getting into the renewable and different parts of renewable decently well. Now sir, just two principal questions. One is on the water waste water. How is the pull? The projects that we are bidding for especially the government projects, and all, we are not getting payments on time. But how is the pull? Is is the EPC, you know, the project condition improving from where it was or is it still a little slow from the government departments as far as the new ordering as well as payments are concerned.

1:01:21 And on the same question, in the next two, three years, we have we have opened up our horizon to add these renewable and other things. And, of course we are doing ZLD, biogas, we are talking about overseas desalination projects, there might be some business available in The Middle East once this war ends and if we are placed well, we can actually get some projects there. But we are, you know, doing multiple things at once. And it's... Naturally, to do it, we have expanded our team, added employee cost and all that also.

1:02:10 So just with a two, three year horizon, sir, if you can shed some light on how things are looking and what are your... Beyond FY '27 targets, maybe twenty eight, twenty nine, thirty. Yeah. That would be helpful. First of all, outlook with respect to water and wastewater treatment segment. I would say there is a lot of traction which is happening in this particular segment itself. In terms of projects coming under Enviro two or the projects from Namami, Gangay, and the projects from state government tying up for loans from World Bank or ADB or Zika.

1:02:59 So there is a lot of traction. And as I confirm, almost around 7,000 worth of growth of projects are available where we do have our keen interest, and we are bidding for these projects. The order... The bidding pipeline may be much larger than that. I am talking about the bid pipeline where we do have our interest. So that Sorry. The the 7,000 crore is purely water? No. First, when I say water, basically, it is I am not predominantly available in the water segment rather I'll say wastewater, so it will be treatment plants or common treatment plants along with Infra. It is all... I'm not talking about renewables right now. Okay. Okay. So this 7,000 pipeline is wastewater, not renewable, not Not renewable. --.

1:03:54 Yeah. Yeah. Yeah. Right? So... Okay. Let's say we can have a very healthy order book going forward as well, and a lot of work is happening in this segment. Now going further, since diversification remains one of the key factors if we have to maintain the level of growth. So the diversification in the water and wastewater treatment sector, how we did it? It was through the geographical expansion first in India. Now we are looking forward to the opportunities in the overseas market as well. Then the next segment which we entered into was Diesel. There is a lot of opportunity which is coming up in India in terms of reuse of water from the seaweeds treatment plants.

1:04:44 That will be one of the biggest opportunities which will get opened up. So there's reuse of water and some desalination projects where we do have our team interest, and we are looking forward to bidding some of the projects with some joint ventures. This is how the diversification in the water segment will continue, and we will move forward. Now coming to the renewables. Again, the diversification that is the need of the hour. That is why we entered into renewables. We invested a small chunk of fund into that renewable. Within first year, we have built it up to a sizable company. Now this, like, the acquisition of wind EPC company, which we did, it has integrated us across the entire chain of renewable, which is solar, wind, and then best.

1:05:38 So once this show execution till this point of level, the order book which is available with us, that completes, we can move forward as a developer as well. We can look forward to the hybrid hybrid opportunities in this segment. So the... That opportunity and the availability of opportunities, that will be very, very high, at least for Enviro, and that is how we look forward to... Will keep on growing. CVG was also one of the segment basically which is getting derived from the wastewater treatment segment as... Itself. So we are also concentrating on it because it can create a good value chain. So this is how we are trying to integrate across different different segments.

1:06:28 Right. So, sir, combining all these three, just to Sorry to interrupt you, Raj. May we request you to rejoin the queue? No. This was a part of the original question. I think they're discontinuing that part. No. Just two, three years. And where do we see ourselves combining these three? What is the envision in is the next two, three years? Where do we see the top line trajectory, margin trajectory? Just how do we see the picture painting? We look forward to a continuous growth of somewhere around 25, 30%, which should be their minimum at which the company should keep on growing and with maintaining the healthy margin levels. I think our EBITDA margins and PAT margins, even with the renewables entry, have been at a very decent level.

1:07:21 And we expect and we will continue to foresee that our margins remains good. We are not inclined to go for the projects where the margin profile goes low, and that will be our key area where we will see that the margin profile should men... Get maintained. Thank you. Raj, we request you to resign for further queries. We have our next question from the line of Raman from Sequium Investments. Please go ahead. Hello. Thank you for allowing me to ask for follow-up. On the on the hybrid... Again, on the again, on the hybrid hand project with respect to wastewater treatment, I just want to understand that you mentioned that they... You will protest PV, and then it will be executed over the next five months post the SPV.

1:08:21 So you also mentioned in the opening remarks that you wanna focus more on projects going forward. So can you also give a bid pipeline with respect to only projects where you are bidding? At least at present, we have submitted our bid for two more hemp projects. We are expecting some hemp projects which will be available for bidding in next three to four months time since the are just on the move. So at least at present, we do have two projects for which the bid evaluations are underway. And this 400 crores of project is is this a one project, or is it, like, a multiple project? There are total of five projects under him, which we have got. One project is completed.

1:09:16 Second project is just on the verge of completion, which is at Mathura. Third project is at Saharanpur for which three milestones have been completed out of it, and it is moving ahead of time. These two projects are new ones and for which the work shall come in sometime in the month of October and November, at least at present as we expect. Understood, sir. Thank you. Thank you. Ladies and gentlemen, due to time constraint, that would be the last question of the day. And I now hand the conference over to mister, managing director for closing comments. Over to you, sir. Thank you for your continued trust and interest in Enviro Infra Engineers.

1:10:04 We remain focused on disciplined execution, extending our core water and wastewater business, and scaling our renewable energy and best platforms. With a healthy order book and expanding capabilities, we remain committed to delivering sustainable growth and creating long term value for our stakeholders. Thank you once again for joining us today. Thank you. Thank you. On behalf of Enviro Infra Engineers Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.