Enviro Infra Engineers (NSE:EIEL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Enviro Infra Engineers Limited q two and h one FY twenty seven conference call. Today, we have with us mister Sanjay Jain, Chairman and Mr. Manish Jain, Managing Director of Enviro Infra Engineers Limited. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company 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 after the presentation concludes.

0:45 Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain for his opening remarks. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. Thank you for joining us today for Enviro Infra Engineers Limited Q2 and H1 FY 'twenty seven Earnings Conference Call. On behalf of the entire Enviro Infra Engineers family, I would like to extend my warm wishes to all our investors, analysts and stakeholders on the occasion of Diwali. I wish you and your families a very happy Diwali.

1:33 Joining me today are Mr. Manish Jain, our Managing Director and our Investor Relations team from a sector PR. We have shared our financial results and earnings presentation, and I hope you have had an opportunity to review them. The first half of the FY 'twenty seven has been an important period for Enviro Infra Engineers as we continue to strengthen our position in the water and wastewater infrastructure sector while expanding our presence across renewable energy and other sustainable infrastructure segments. Our long term objective is to build on our established engineering and execution capability and evolve into a diversified engineering and infrastructure company.

2:26 India continues to witness significant investment in water management, wastewater treatment and clean energy infrastructure. Government initiatives such as Namami Ganges and Ambrose, along with the increasing focus on water reuse and environmental sustainability, are creating meaningful opportunities for companies with strong technical expertise and execution capabilities. At Enviro Infra, our water and wastewater business continue to remain the foundation of our operation. Over the year, we have developed strong capabilities across the design, construction, commissioning, operation and maintenance of complex water and wastewater treatment infrastructure.

3:17 Our expertise spanned series treatment plants, series network, common effluent treatment plant and advanced wastewater treatment solution, including zero liquid discharge and treated water reuse. During the first half, we further strengthened our M portfolio with two new projects under the Namami Ganga Ganga program in Varanasi awarded by Uttar Pradesh Janiagam. These projects include a 45 mlt series treatment plant at Pandit Dindhyan, Sukadhyayanagar, valued at 126.78 crore and a 60 mlt series treatment plant at Lohota, valued at INR 130.14 crore.

4:03 Together, these projects have a combined value of approximately INR $2.57 crore, excluding GST and includes fifteen year of O and M. With this addition, our M portfolio now comprises five projects. Our execution capabilities are reflected in our growing portfolio of water and wastewater treatment projects across India. We have completed 58 water and wastewater projects with a cumulative treatment capacity of ten eighteen MND built to date, demonstrating our ability to undertake complex treatment infrastructure projects. Alongside our core business, we have continued to make significant progress in expanding our renewable energy platform.

4:54 Our diversification into renewable energy is a natural extension of our existing engineering and project execution capabilities, enabling us to participate in opportunities across solar, wind and battery energy storage system. The acquisition of its controlling stake in Piobhutra Limited earlier this year marked an important milestone in this journey. The acquisition has strengthened our capabilities in the wind EPC segment and provided us with access to an experienced execution team and an established project portfolio. During September, CEO Bhujar received a letter of intent from Tata Power Renewable Energy Limited for EPC Sulky Water relating to the 180 megawatt NCPC wind project at Farley, Maharashtra.

5:55 The project is valued approximately 190 crores, excluding GST and includes wind turbine foundation, balance of plant infrastructure and associated transfusion work. It is scheduled for completion by March 2027. Subsequently, in October 2026, CEO Goodyear received another letter of intent worth INR $2.28 crore, excluding GST from ARE Energy LLC for EPC work related to the 100 megawatt Ayaani wind power project in Ladakh, Maharashtra. Together, these two wind EPC order represents approximately $4.18 crore in project value, excluding G and C, and further strengthen our execution pipeline across FY 'twenty seven and early FY 'twenty eight.

6:55 These developments demonstrate the increasing scale of our renewable energy operations and our ability to participate in larger infrastructure projects. Importantly, renewable energy contributed approximately 29% of our consolidated revenue during H1 FY 'twenty seven, reflecting the growing contribution from our diversified business portfolio. As on date, our diversified order book is spent at approximately 6,778 crores comprising INR 3,439 crores from water and wastewater infrastructure and INR 3,340 crore from renewable energy.

7:41 This provide us with healthy execution visibility across our businesses. Beyond wind, we continue to strengthen our presence across solar and battery energy storage system, which we believe will play an increasing important role in India's evolving energy infrastructure. Looking ahead, our priorities remain focused on strengthening our core water and wastewater infrastructure business through timely execution, advanced treatment capabilities and long term O and M opportunities, while scaling our renewable energy platform across solar, wind and energy storage. We remain committed to disciplined execution, operational efficiencies and prudent capital allocation as we convert our growing order book into sustainable revenue and profitability.

8:40 We believe the combination of our established water infrastructure business and expanding renewable energy capabilities provide us with a strong foundation to participate in India's growing sustainable infrastructure requirements and create long term value for our stakeholders. With that, I would now like to hand over the call to Mr. Manish Jain, who will take you through our key operational development and financial performance for the quarter. Thank you, and over to you, Mr. Manish. Thank you, Sanjay, sir, and good afternoon to you all. I will take you through our operational performance, order book composition and financial results for the second quarter and first half of FY 'twenty seven, followed by our priorities for the remainder of the financial year.

9:36 Starting with our order book, has already highlighted our overall order book position. I would like to provide some additional details on its composition and execution visibility. Within the water and wastewater segment, our EPC order book stood at approximately 2,106 crore, while our hand portfolio accounted for rupees 346 crore. In addition, our long term operation and maintenance order book stood at approximately rupees 987 crore, providing revenue visibility beyond the concession fees. On the renewable energy side, our execution order book comprises approximately rupees 111 crore in solar, 1,100 crore in West, and 1,054 crore in build projects.

10:28 The income generation from ITT projects, which is over a period of fifteen to twenty five years is rupees $9.56 crore along with 109 and maintenance contracts of the Optune renewable order book. For the second quarter of FY twenty seven, on a stand alone basis, the revenue for the quarter stood at rupees $2.67.13 crore, EBITDA stood at rupees 65.13 crore, and PAT on a stand alone basis stood at rupees 36.87 crore. The EBITDA margin for the quarter on a stand alone basis is 24.38%, and PAT margin is 13.8%.

11:18 Our consolidated revenue from operations stood at rupees $3.63.8 crore compared with $2.27.3 crore in q two FY twenty six, suggesting a year on year growth of 60%. On a sequential basis, revenue increased from $3.59.2 crore in q one, FY twenty seven. On consolidated EBITDA excluding other income stood at rupees 74.9 crore compared with rupees 64.9 crore in the corresponding quarter last year, registering a growth of 15.3%. Our EBITDA margin stood at 20.58% compared with 28.56% in q two FY twenty six and twenty one point zero seven percent in q one FY twenty seven.

12:08 Profit after tax for the quarter stood at 39.5 crore compared with rupees 49.5 crore in q two FY twenty six. The moderation in profitability reflects the movement in operating margins along with higher depreciation and finance costs. Basic earnings per share stood at INR 2.36. For the first half of FY twenty seven, consolidated revenue from operations is 2 lakh rupees $7.23 crore compared with rupees 458.3 crore in h one FY twenty six, registering a growth of 54.4% year on year basis. EBITDA, excluding other income, increased six... 16.6% to $1.50.5 crore compared with $1.29.2 crore in the corresponding period last year.

13:01 The EBITDA margin for the first half stood at 20.82%. Profit after tax stood at rupees 84.7 crore compared with 92 crore in h one, FY twenty six, while the basic earnings per share stood at 4.63. The moderation in EBITDA margin at console levels are attributed to some accounting and paid on account of interest cost on the payments to be made at a later stage for acquisition of Limited and reversal of profits from ETT to ETT of IPP projects. The profitability from IPP projects shall get reflected once the projects are completed and it starts generating IPP revenues.

13:47 Further from q three and onwards, the scale of EPC of depth and wind projection increase substantially, which will result in the improved profitability for the renewables and for the company as well. Overall, the first half reflects strong revenue growth in an increasing scale of operations across our businesses. While the margin profile has moderated, our emphasis remains on cost management, project execution efficiency, and sustainable profitability. Coming to our balance sheet and working capital, efficient capital management is means a key important focus area, particularly as we undertake projects with different execution timeline and funding requirements.

14:33 As of September 2026, our consolidated trade receivables stood at approximately $3.21.8 crore compared with $1.65.3 crore as of March 2026. At the same time, our total borrowing stood at approximately 703.9 crore compared with $4.22.3 crore at the end of previous financial year. We continue to work towards timely certification of project milestones, improving improved billing in collection and optimizing our working capital requirements. Our objective remains to ensure that the growth in our operations is accompanied by disciplined capital utilization and improved cash flow generation. Looking ahead to the second half of FY 'twenty seven, our immediate priority will be to accelerate execution across existing water and wastewater treatment projects, progressing in the HAM portfolio and expanding our long term operation maintenance.

15:38 Alongside this, we will focus on the timely execution of our renewable energy projects, particularly across WES and WIN, EPC, while managing procurement commitments and capital requirements efficiently. We will continue to pursue new opportunities selectively with an emphasis on the project quality, execution capabilities and profitability. Our focus remains on converting our existing project pipeline into sustainable revenue growth while expanding our operating and financial performance. With that, I would like to thank all our investors and analysts for their continued interest in Enviro Infra Engineers Limited. We can now open the floor for questions.

16:25 Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch tone telephone. 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 will wait for a moment while the question queue assembles. The first question comes from the line of Nitin Asopa with Om Investment.

17:14 Please go ahead. Good afternoon, board. Good afternoon. My name is. I'd like to ask a question regarding the company's long term growth opportunities. Given the rapid growth of semiconductor manufacturing and data centers in India, both of which require advanced water treatment solutions, is Enviro Infra Engineers evaluating an expansion into high purity and ultra pure water treatment systems for semiconductor for semiconductor fabrication facilities and advanced water recycling solutions for data centers. Does the company see these sectors as potential growth opportunities, and are there any plans to develop the necessary technological capabilities, strategic partnerships, or collaborations to enter the specialized markets?

18:06 Thank you. You can... Company is already into the ZLD segment. At present, we are executing one of the ZLD projects, which is for a textile complex for MIDC at H. So Okay. If we look forward, so, basically, the LD is one of the key areas where the company will continue to focus. Along with the LD, the use of wastewater from the previous treatment plants is gaining a lot of momentum since water is very scarce and availability of water to various industry. It is a mandated requirement right now to support the industry. So the use is one of the key focus area.

18:56 As present, the company is not available for... In the ultra pure water segment. We will continue to develop our execution capabilities. And one point of time, we look forward to entering that segment, but presently, we would focus on the ZLD, use of water from the previous treatment plant. We would like to focus on the desalination project as well. So this is how we will continue to expand our journey across entire spectrum of water and wastewater treatment. And at some point of time, when we we are comfortable enough, then definitely we look forward to entering the UPW as well. But at least as of now, UPW, we are not available. Advanced wastewater treatment system for a data center that is also...

19:47 Means that capability as we are doing the ZLD systems, so that is there. So apart from UPW, we are well aligned, and we are moving into these type of projects. Thank you. Thank you. The next question comes from the line of with Capital Advisor. Please go ahead. Hi, sir. Good afternoon, and thank you for the opportunity. So my first question is, has there been any improvement in fund release under Ambrose, Namami Gangay, and other government projects? There are no challenges with respect to the release of funds under Namami Gange.

20:33 If I say Namami Gange, there are two type of projects. One is M project and second is EPC. Under M projects, the funds are already parked in the dedicated escrow accounts. So release of funds are never a challenge when we are executing a hand project under Namami Ganges tools. The second one comes the EPC under Namami Ganges. So the availability of fund, again, is not a challenge under NMCG. So there is a working capital cycle of them that is not also very stressed. It can be somewhere around sixty days time. So Namami Gangvei projects, the fund release or the working capital cycle not gets bloated.

21:21 Now coming to the second aspect, Amrut. Amrut, it is off and on, I will say, and it is statewide. In some states, the funds are getting released smoothly. In some states, there are some of the issues. The issues may pertain to the local department as well. There there are some approvals which are pending with respect to the usage of funds or their signature... Signatories are not available. So that type of issues can be there. Other way around, the funds are being made available even under 16 vessels. So we understand that working capital cycle gets a bit bloated in under project, but funds are available and the projects are moving on. Okay. And, sir, my next question is what is company's strategy for expanding its presence in BESS segment?

22:15 In the BES segment, presently, there is an order book of nine thirty megawatt hour from NTPC. We do have one project, which is an ITT project from the heart, which we have acquired. So right now, we are executing these two projects. To our understanding, a major chunk of these project is expected to be completed by June. So we look forward to a good execution and in the best projects, and then definitely look forward to further increasing our order book in that segment both under EPC as well as IPP if a good project is available. Okay, sir. That answers my question. All the very best, and thank you.

23:05 Thank you. The next question comes from the line of, an individual investor. Please go ahead. Hello. Good good afternoon, sir. Thank you for the opportunity. Sir, my question is related to the margin decline that we have seen in this quarter and also H one. So compared to the previous year, we have seen a decline of almost 800 to 900 BPS. So so what has been the main reason for this decline, sir? And also, whenever checking the results, there is an item in e and l which says other construction and operating expenses. Year on year, that has increased from 46 crore in last year to $1.78 crore. So that's that's a that's a quite increase.

23:57 So I wanted to know what exactly is this cost item? And also, you can give a overall commentary on why we have seen margin declining from 27%, 28 to 20% levels? Atul, if you see to our guidance for the current financial year, we had reduced the EBITDA margin guidance in the water and wastewater treatment segment to somewhere around 21%. It was on account of the war which is continuing in West Asia and this Middle East and because of which the input pricing has increased substantially.

24:46 If you see to the stand alone results of the company, basically, we have done somewhere around INR $2.64 crores in the current quarter. And our EBITDA margin stands at 24%, and our FAT is also somewhere around 14%. So as we came to the results for... On a stand alone basis, to my understanding, we are well sorted, and we are maintaining guidance. We are well above our guidance levels as well. Now coming to the renewable segment and on the console balance sheet and profit and loss.

25:33 Basically, if you could have... You could just recall the speech wherein I mentioned, there are some accounting entries because there has been an acquisition of which is at 311 crores. First installment or first tranche of rupees 111 crores is what has been paid. And rest balance, 200 crores, that will go in next two years. So there has been an implication of some interest cost which has been taken as an expense. This is one of the costs which has got added the second. So it is again a vocation. Second one is, as we are executing the EPC of the IPP projects which we are having in hand, the profits are required to be reversed in these ITT projects. Reason being, since it is a group company, renewable is basically the parent company and asset is part in the SPD.

26:40 So as the parent company is doing the EPC, there are any profits at the, you know, console level that margins are required to be reversed. With these accounting entries and these audits, yes, on the top... On overall basis, it looks the profitability is going down. Then if you will see the revenue have increased almost 60%. EBITDA has increased to around 20%. And then what we can understand is there has been an increase in the finance cost depreciation Depreciation because the IPP and hand projects that we are doing, so there is a higher account...

27:30 Accounting for the depreciation. So that is as a percentage of sales, employee cost, finance cost and depreciation have definitely increased for the first half. But as the revenue growth will further improve in Q3 and Q4, we expect the profitability in itself that will improve substantially, and it will improve the margin profile as well. Okay. Okay, sir. So, basically, my my main question was... So I I understand the finance cost depreciation, those have increased in line of, let's say, increase in the revenue. My question was on, there is an item, sir, other construction and operating expenses. That is INR 178 crore for Q2. So could you explain, like, is that is that part of the payment that we have done to, like, 111 crore, you're saying? No. No.

28:25 These are the direct of... Which includes all the expenses which are related to the execution of the projects. One is the purchase cost, and second is other construction and operation cost. So, basically, all the the manpower cost, the wages, the civil construction, this labor cost, so all these first job works, these all are taken as a part of this other construction and operating expenses. I will suggest if you will see the purchase cost along with this other construction and operating cost. So if you will congregate these two and if you will compare these costs, I think that will make more sense. And then the actual changes what are happening in the cost of production, that will make sense.

29:22 Okay. Okay, sir. It's just a request that if possible? So basically, I'm saying, like, out of total main expenses of $2.48 crore, $1.28 crore we are seeing as other cost. I think if we can further break it down, it will be easier for investors to understand that where this other is going on since the value is too high. And my follow-up question would be, sir, so since you're saying the margin is in line of what we had recommended. So for the longer term, if we have to see at consolidated level, both since we have like 50%, 50% order book of renewable and water now. So what is the margin profile that we should expect going ahead? Should it be like 20%, 22% or higher or lower? The EBITDA margin profile can be expected to be somewhere around 19 to 20%.

30:17 When you compare the stand alone and the console PAT levels. So on a stand alone basis, the PAT is 37 crore. On console basis, the profitability is 39.5 crore. So the main point, the profitability from renewable, basically, it will get transpired as the EPC component of renewable from best and wind. That will increase. So there is a substantial uptick which is expected. There has not been a moment or a substantial moment in the EPC execution of these projects till now. This will increase a lot, and then the profitability from EPC will come. While we are executing ITP, so profitability doesn't come during the execution. It will come when the projects get executed and ITT income starts getting generated.

31:13 So the renewable... The profitability from renewable, there should be a remarkable increase in q three and Q4 as we expect. Overall, if I say, the guidance has been 21% EBITDA margins for water and wastewater treatment segment, somewhere between 15% to 18% EBITDA levels for renewable on a console level, we should be somewhere around 19%. So this is how the profile should move in further quarters. Yeah. That... That's, I think, very helpful, sir. So thank you. One last question that I have. Interrupt, Atul. I would request you to rejoin the queue for more questions. Thank you. The next question comes from the line of with Keynote Capital.

32:00 Please go ahead. So I just wanted to know that our q four FY twenty six is also affected by two projects from Bangalore, and it was expected to be commissioned in the q two FY twenty seven. So what is the update on that? The second question is how do we look at consolidated FY twenty seven numbers? Do you stick to our guidance of sales of INR 2,000 crores and what would be the EBITDA and five margins we are expecting? Regarding the two Bangalore projects, the total value of which was around INR $2.20 crores. Both the projects are now under execution and are moving smoothly.

32:47 We are maintaining the timelines, and we expect to complete projects well ahead of schedule. So these projects are now on, and there is no issue with respect to the execution in those projects. Now coming to our guidance for FY twenty seven, we have been able to meet the guidance for the first two quarters as far as the revenues are concerned. So we have achieved a top line of 700 crore, and this was primarily the guidance from outside as well. Now as we move forward, so our guidance remains intact at 2,000 crore to be the total sales turnover for the current financial year.

33:35 So balance 1,300 crore is what we expect we should be in a position to do in q three and q four. But bottom line also is expected to be somewhere in the range of around $2.40 to two fifty or so Our guidance remains intact for the financial year. We maintain our guidance. There is no change. And as such, if we talk current financial year, the order book is already there in our hands, and what guidance we are giving is based on the current order book only. When are we expecting to be OCF positive post Q3? We look forward to be OCS positive by Q4.

34:26 I don't see any chances. If you again, if I give a number basically for the current in this H1, there is an increase in the service concessionaire agreement receivables to the tune of 57 crore. This amount has to come over a period of fifteen years. So this is one which low... Which takes this OCF to negative figures. Trade payables have got reduced from ninety three days to sixty three days. So the total outbound that account has been to the tune of a 102 crores. So if we can just... I don't know. Maybe there's a reconciliation. If I would have slowed down on the payments, you know, for the trade receivables, I could have done okay quality.

35:16 As such, operations in the company are smooth. We are moving at a rapid pace. The execution of the projects are well in control. We are executing projects well ahead of time. So that way, we still are in a confident position. OCF positive, definitely on paper as it should look like, we expect that Q4 onwards, we should be OCF positive. Okay. That's it from my side. Thank you. The next question comes from the line of Sudip Anand with Systematics Group. Please go ahead. Good afternoon, sir, and wish you all a very happy event and happy Diwali.

36:04 Just a few questions. Sir, if you look at our balance sheet, our debt level has actually... Gross debt has gone up significantly consolidated from INR $4.22 crores to INR $70.04 crores. And based on the order book, which we have around INR 6,700 odd crores, what is the peak date level that we are looking at and when it should reach out? Afternoon, Sudip ji and happy to answer your question. First of all, if we look into the debt to equity, so even at present, our debt to equity is somewhere around 0.53. So that says we are sitting on a comfortable level. Still, if we compare it from Q1, it was somewhere around INR $4.23 crores, which has now increased to INR 700 crores.

36:55 So we can attribute it to some of the hemp projects which we are executing. Two hemp projects which we were executing in Enviro. It was a Matra project where we have achieved a construction completion now. The second project is Saharanpur, wherein we are moving for the fourth milestone completion. So there is an increase in the term loan due to this. There are IPP projects as well in the renewable due to which the term loan has increased, but there is an asset which is available from which the income accruing in the future will take up the interest for for those particular projects. So that means term loan definitely is expected to increase, but it will increase moderately.

37:49 And to an extent, there is an increase in the short term loan level, but we we expect that as the cash flow cycle will get eased out. So the... This this... I'll say the trade... That's tables to which we make payment to our MSME vendors. The CC limit or the WCDL, that will go down. I can look forward to this number not getting bloated too much, but to give exact number is not possible. So if I say my... This financial year should get close at a debt to equity level, not more than 0.6. Okay. And sir, similarly with the receivables and UBR, do you think that by FY 'twenty eight, it should actually by FY 'twenty seven, it should considerably come down or we should look at a similar kind of level by FY 'twenty seven, by March 'twenty seven?

38:52 The UBR, which was there in our balance sheet because of projects, it has now reduced significantly. And what I can say is now it is not even in three digits, somewhere around the projects of the... On this antigen exam on Argarjal, which we were executing. So can be somewhere around 100 crore or maybe less than 100 crore now. So these projects are moving on a continuous basis. So by March, we expect that it will almost be the media. Negligible amount fees, some smaller ones can be there. So this is one. We expect a significant improvement in the working capital cycle in other projects.

39:42 So a significant reduction is possible. But one thing which I would like to emphasize, the value may remain at a similar level of maybe somewhere around 600 crore or so. But as a percentage of the sales or in terms of UBR days, we do expect that it should come down substantially because as a sales will increase on a... That number may not be going down significantly, but, yes, UVR should definitely come down. So we are at a peak of it. Okay. And in comparison to Q1 in comparison to Q1, it has come down. That's great. Sir, just one last question if I squeeze in. So if you look at the so in recent, say, last six to nine months, most of the order has come in the renewable segment.

40:35 Should we consider like strategically, we are moving towards the renewable and water where the contribution in the total order book will keep declining? Is it so? Or it's just a matter of time and going forward, sir, how should we look at, say, by FY 'twenty eight, what contribution from water you are expecting to the total order book? But sir, there is no chance of getting shifted from the parent water and wastewater treatment business, which is the core, and you have been continuing with it for the past thirty five years, and we don't see that there will be any decline in the opportunities in this particular segment.

41:23 Now coming to the order book in the past five, six months, basically, there has been some increase in the competition. We have not lowered our profitability guidance from the projects while we are bidding. Now if we have to maintain that profit profile, so the type of projects, the maybe a single ticket size project, the amounts to wastewater treatment systems, the LD projects, reuse. So we are focusing more on that side. Since our order book is already very healthy, last year, when we were bidding, there was a thought process that the order book was not there with the company.

42:13 So we are well sorted at least for the current financial year, and we look forward to quality order book. And we can wait for certain time before we get some good projects. We are not interested in lowering the profitability guidance. That's great, sir. Thank you so much and all the best, sir. Thanks a lot. The next question comes from the line of with Avaya Advisor. Please go ahead. Sir, am I audible to you, Yeah yeah, please go. Yeah, happy sir. So my first question is, what is the company's order inflow target for FY twenty seven? And how is the current project pipeline shaping up, sir?

43:03 The order guidance for current financial year in the water and wastewater treatment segment was INR 2,500 crores. Okay. The order book which we have got in the current financial year, we have got 200 projects or $2.50 odd crores. So balance order pipeline is what is still to be filled or these orders we are expecting. There are some really very good projects which are coming, like the hand projects which are coming right now in Delhi. Some EPP projects coming in UP, a number of projects in Jharkhand, Bihar, NMP, and Karnataka.

43:52 So across all states under Namami, Dengue, where this Namam... We were Gangor, Gangor, Gangor, Gangor,. There is one more from the government. So there there is one more issue which I was telling. It is a one challenge fund. Apart from Ambrose, the projects are also coming under UCF as well. So we look forward to very strong pipeline coming in in the future as well. So the stick to our guidance once again that this order book of balance order book of around $222.50 per road, we should get in the current financial year itself.

44:38 Apart from this, there are some overseas projects for which we have submitted our bids. So we look forward to some of the... At least one or two projects from overseas, which should get approved in our order book. So this is how we look forward, but this order, this guidance of 2,500, you need. Okay. And if I look at to your margin profile, so do you provide any kind of margin breakup, EBITDA margin breakup in our water, wastewater and renewable energy segment? And what are the expected margin ranges for each of the segments, sir? I have just explained it recently. I'll repeat it for the sake of clarity for you.

45:24 Okay. The margin guidance, EBITDA margin guidance from our side for water and wastewater treatment segment is 21%. From renewable, it will be somewhere in the range of 15 to 18%. Blended level, it should be between 19 to 20%. So this should be on a consolidated, it should, like, look to be 19 to 20%. Okay. Okay. Yeah. Thank you for the detailed explanation, sir, and wish you all the best and happy Diwali to you. Thank you. Happy Diwali. The next question comes from the line of, an individual investor. Please go ahead. Hello. Am I audible? Yes, sir. Yeah. You are audible. Please go.

46:10 Very good afternoon, sir. Season greetings to you all, sir. Sir, my question is related to... Sir, what will be the next growth driver for the company in the next three to five years, which will help the company to grow sustainably over a period of time, both in terms of revenue as well as in terms of profitability, a long term user in next two to three... Three to five years. Means, any sectors you want any sectors you want to diversify like AI or data center or something like that, or you want to grow your international presence where we can get government funded projects like our competitors are doing. Anything like that, that would be very helpful, sir. There are two segments in which the company is present.

47:02 One is the water and wastewater treatment segment, and setting is the renewable segment. First, if I come to the water and wastewater treatment segment, there are ample opportunities which are available in India. The opportunities transpires from various wastewater treatment projects in terms of the new series treatment plant, which are coming up, upgradation of existing plants, then reuse of these series treatment plants, concession of new ETPs or CETPs, the LD systems desalination plants. So, basically, these are the main drivers of growth right now in India with various government schemes.

47:53 The CETP or the is coming directly from the Industrial Development Corporation or from the trust. And the detonation projects are being coming from industrial bodies. So this is driving growth in India. Apart from this, yes, there are ample opportunities available overseas as well. We are moving overseas. We have submitted our bids at some of the projects, and we are expecting results to be there. So it will be one of the key group drivers for the company. The second one is the renewable wherein we entered just last year within a span of just one year and which is going on now further.

48:42 There is a very healthy order book which we have accrued in this particular segment. The segment is interesting. The growth is really fast. There is a moderation in the margin profile. The renewable segment doesn't draw the level of margins which the water and wastewater segment does. However, the execution cycle is really fast. So if we see on an ROE or ROCE perspective point of view, the renewal in itself also commands a lot of interest, and definitely, this sector will continue to grow. So as an integration, if I... If we say we'll continue to grow in both the segments, and both the segments will drive growth for company in next four to five years, which is clearly visible even as on date.

49:38 This is regarding raw material inflation, is it pass through, or do we still feel that it is... Will bear the cost? There is a price escalation clause in the big documents, standard or agreements that we do, but it does not get passed on to 100% extent. There is some price part or there's some cost which we have to be aware of them because of which we have lowered our EBITDA margin guidance to an extent. Though we lowered our EBITDA margin guidance in the water and wastewater segment to be 21%, still, we have been able to achieve that EBITDA margin of 24% in q two.

50:25 So that's it. Our guidance has got lower, but on the execution front, we have been able to deliver the same type of margins, which we have done in the past. 24% is what we have achieved in q two on a stand alone basis. Okay, sir. Thank you, and all the best for the future, sir. Thanks a lot. The next question comes from the line of, an individual investor. Please go ahead. Thanks for the opportunity again, sir. Sir, my one question have... I I have one question on the operation and maintenance percentages in revenue. So so far, the last two years, we have been doing around three to 4% of total revenue that comes from O and M.

51:14 Currently, we have order book of around 1,100 crore just from O and M. So when are we expecting to see more and more O and M percentage in the total revenue? And I am guessing the margin will be higher there. So I think that will also help us increase the overall margin. So so by when, let's say, one, two, three years, what percentage we are targeting as a as a part of overall revenue? As the fees turnover will increase in the company, the operation and maintenance revenues will also increase. But at least as of... At present, what I can say is operation and maintenance revenues will continue to be in the range of three to 4% of the total top line on a stand alone basis.

52:10 If there are any further projects wherein we enter into the RLD systems, where the recurring cost goes high, so the o and m revenues may... As a percentage may increase. Absolute terms, operation and maintenance will increase. The operation and maintenance revenues will get generated over a period of five to fifteen years. So at an average level, what we can say is somewhere around 100 crore. I expect that as the project will keep on completing, there are three projects. So right now, we are under... Almost on the completion. So the o and m revenues will start generating from from these three projects as well, which is mainly Mathura, which was a ham project with construction completion is already there.

53:02 We expect COD very soon, Yamna Nagar and Amdesar. These two projects are also on the verge of completion. So as the projects will keep on completing, the O and M revenues will keep on accruing. But as a percentage, again, I will say, it will be it will remain to be in the range of around maybe three to 4%, maybe in May, it increased slightly to 5%. Okay. Okay, sir. That's helpful. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Sanjay Jain for the closing remarks. Thank you. Thank you, everyone, for your questions and for participating in today's earnings call.

53:49 We remain focused on expanding our Core Water and Wastewater Treatment business, executing our existing order book and expanding our renewable energy capabilities in a disciplined manner. We appreciate your continued support and look forward to updating you on our progress in the coming quarters. Thank you, and have a wonderful day. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of Enviro Infra Engineers Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.