G R Infraprojects (NSE:GRINFRA) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the GRINFRA Projects Limited Q1 FY 'twenty seven Earnings Conference Call hosted by HDFC Securities 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. Should you need assistance during this conference call, please signal an operator by pressing star, then 0 on your touch tone phone.

0:46 Please note that this conference is being recorded. From the management, we have mister Ajendra Kumar Agarwal, managing director, mister Anand Rathi, group CFO, and mister Ankit Maheshwari, deputy CFO. I now hand the conference over to mister Parikshit Khanpal from HDFC Securities. Thank you, and over to you, sir. Thank you, Anurag. So I'll just hand over the call to the management without taking much time. So, Ajinder, we'll start the proceedings with a brief overview of the industry followed by financial presentation by R Infraprojects and Ankit. Over to you, sir. Thank you, Prashanti. Good afternoon, ladies and gentlemen, and a warm welcome to the Q1 FY 'twenty seven Earnings Conference Call of GRINFRAJES Limited.

1:39 Thank you for taking the time to join us today. I am joined on this call by Anand Rathi, Chief Financial Officer and Ankit Maheshwari, Deputy CFO of the company. I will begin by sharing an overview of our financial and operational performance during the quarter, along with our perspective on infrastructure sector. Thereafter, Ankit J. Will take you through the financial performance in detail. Following which, we will open the floor for questions. During Q1 FY 'twenty seven, the company recorded revenue from operations of approximately 2,423 crore, representing a growth of INR 32.71 compared to corresponding quarter of the previous financial year on a stand alone basis.

2:38 Adjusted EBITDA margin stood at 11.01% for the quarter as against 12.17% in the corresponding period last year. During the year, the company maintained a debt equity ratio to 0.03, which is continued to remain among the best in the sector. As of 07/01/2026, our order book stand at approximately INR25300 crore, further which aggregating to approximately INR 32,000 crore are yet to be opened. During the quarter, PCOD of Amritsar Bhatinda in Punjab and Yamuna Bridge projects in UP has been received as on date upon the date of three projects amounting to INR 7,250 crores are still awaited.

3:42 I would like to reiterate that the company's growth strategy is not limited to the road sector alone. We continue to see growing opportunity across metro, railway, power transmission, logistics and warehousing, tunnel, battery energy storage system, telecom infrastructure and oil and gas sectors. Considering that, we believe greater participation of private capital supported by improved long term financing mechanism and clear concession structure shall support the expansion of infrastructure sector and create additional opportunity for experienced EPC players. While the pace of project award may vary across sector, we remain positive on the overall infrastructure outlook for India.

4:32 The country continues to have a significant long term infrastructure requirements supported by sustained public investment and growing private participation. Let me now briefly touch upon the key sector developments. In transportation sector, the transportation sector continues to present a strong opportunity with an overall pipeline of around INR 3.85 lakh crores comprising approximately 78% of highway, 16% in railway and 6% in metro. The government is also working to revive private sector participation in highway development through a new toll comm annuity model, Combining feature of BOT and HAM, the proposed framework would provide 10% to 25% upfront government support for projects requiring higher levels of visibility gap funding, while allowing concessionaire to retain toll revenue over a fixed twenty year concession period.

5:32 The revamped BOT toll framework is also expected to bring over 10,000 kilometer of projects into the private bidding pipeline. The newly introduced urban decongestion policy is expected to strengthen center state coordination with greater state participation in planning and financing, ring roads, bypass and other urban connectivity projects. The railway sector also continued to move towards corridor based capacity creation, freight decongestion and technology led operations. During the quarter, the government approved multiple multi tracking projects with an aggregate investment of approximately 48,000 crore, while continued investment in safety, signaling and communication infrastructure continue to strengthen network capability and reliability.

6:31 In power transmission, the power sector is entering a period of structural reform, with the government preparing the first major overhaul of the national electricity policy. The proposed policy is expected to address the issue around transmission and distribution network access, traffic rationalization and cost subsidies, with potential implications for investment and private participation across the power sector. As renewable energy generation expands, the sector's next phase of growth is expected to increasingly focus on developing high capacity transmission network to evacuate power from renewable rich regions. The sector is emerging as a significant infrastructure opportunity with industry estimate indicating transmission CapEx of around 5 lakh to 6 lakh crore between financial year 2732.

7:30 Backed by strong government led project pipeline, the panel and hydro segment represent an estimated opportunity of 1 lakh crore approximately over the next five years. The government has also strengthened policy support for energy storage with proposed INR 15,000 crore viability funding scheme for 112 gigawatt of storage capacity, including 60 gigawatt of pumped storage. In oil and gas, the government has approved crore incentive package to accelerate deepwater exploration and attract foreign investment, including support of up to 50% of exploratory drilling cost.

8:17 The government is also stepping up effort to expand domestic oil and gas exploration with 46 new exploration block under open expedited licensing policy, tenth and eleventh, covering over 2.6 square kilometer offered under the latest OALP rounds. In logistic and warehousing, the logistics and warehousing sector is also a long term opportunity with industry estimate indicating that India could require around two sixteen multimodal logistic parks by 2047 to support the growth of freight movement and improve supply chain efficiency. The government is also working to strengthen our model concession agreement framework for multimodal logistic park with objective of improving project viability and facilitating greater private sector participation.

9:14 The warehousing sector is witnessing strong investment momentum with institutional investment in Indian warehousing rising 53% year on year to around INR500 crores. The warehousing sector is also expanding beyond traditional metropolitan market with many Tier two cities emerging as new warehousing hubs, supported by improving connectivity, growing consumption and industrial activity. I would like to thank our clients, vendors, partners, employees and shareholders for their continued trust and support. With that, I now request Ankit Ji to take you through a financial performance in detail. Thank you. Thank you, sir, and good afternoon, everyone.

10:03 I will start with the key highlights of quarter one performance. The stand alone revenue from operation was INR 2,423 crores approximately in the quarter ended June 26, which has increased by INR 32.71 percent year over year compared to INR $18.26 crores in quarter ended June 25. The consolidated revenue from operations was INR 2,784 crores in quarter ended June 26, which has increased by 40% year over year compared to INR $19.88 crores in quarter ended June 'twenty five. The stand alone EBITDA margin stood at 11.02% in quarter ended June 'twenty six from 12.65% in quarter ended June 25.

10:50 The decrease was primarily in account of higher construction and material costs. The EBITDA margin at group level has decreased to 16.8 in quarter ended June 26 from 20% in quarter ended June 25. Profit after tax at stand alone level decreased to INR 203.63 crores in quarter ended June 26 as compared to INR $2.15 crores in quarter ended June 25. Profit after tax at consolidated level increased $3.58 crores in quarter ended June 26 compared to INR $2.44 crores in quarter ended June 25.

11:37 The PAT in the current quarter includes exceptional item of INR 46 crores related gain on dilution of interest in associate from 43.56% to 31.58%. The stand alone net worth stood at 9,074 crores at the end of June twenty six. Sir, would request you to come a little closer to the microphone because your voice is fading away every now and then. Thank you. Sure. Am I audible now? Much better, sir. Please go ahead. Okay. The stand alone network stood at 9,074 crores at the end of June twenty six. It was INR 8,869 crores at the end of fiscal 'twenty six.

12:26 The net worth on consolidated level is INR 9,750 crores at the end of June 'twenty six. It was INR 9,391 crores at the end of fiscal 'twenty six. The total stand alone borrowings outstanding at the end of June 'twenty six is INR $2.39 crores with debt to equity of 0.03x. The total consolidated borrowing outstanding at the end of June 'twenty six is 5,286 crores with debt to equity of 0.55x. During the quarter, the company has made additions to the fixed assets amounting to 22 crores with a net block of property, plant and equipment, which is $10.19 crores at the end of current quarter June 26.

13:23 Investment in the subsidiary companies in the form of loan and equity are 2,445 crores at the end of June twenty six, and the balance equity contribution required to be made to the M and BOT projects is INR 3,346 crores, of which we are expecting contribution of approximately INR 900 crores to 1,000 crores in the fiscal 'twenty seven. Working capital days at the end of June twenty six is one hundred and forty eight days as compared to one hundred and twenty eight days at the end of fiscal 'twenty six. The increase is primarily on account of increase in debtor and inventory days.

14:13 The trade receivables at the stand alone basis are INR 2,655 crores, including INR $17.84 crore hand debtors at the end of June twenty six, and the trade receivables at the consolidated level are INR $10.91 crores at the end of June twenty six. The unbilled revenue at the stand alone basis is INR $9.38 crores at the end of June twenty six and unbilled revenue at the consolidated level is INR $4.98 crores at the end of June twenty six. Inventories are at INR $8.63 crores at the end of June twenty six compared to INR $7.39 crores at the end of fiscal 'twenty six.

15:04 So I would sincerely like to thanks again to everyone. And on behalf of GRINFRA Projects Limited, I thank everybody on that. Thank you. Thank you. We will now begin with the question and answer session. 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 with Dollar Capital.

15:50 Please go ahead. Yeah. Thank you, sir, and congrats on the good setup number, particularly on the execution front. So a couple of questions. So, sir, first, abroad in terms of the guidance. So previously, we were looking at revenue at a stand alone level for FY 'twenty seven, 15 odd percent kind of a growth. Now we have already done a much better number in the end of 32%, 33% in the Q1. So how one can look at the FY 'twenty seven revenue? And then going forward, in terms of the FY 'twenty eight onwards, can we see this execution rate to inch up even 20% plus kind of a number?

16:38 Yes. Thank you, Sharma. Ankit here. So yes, mean, one, we have been able to achieve 30% -plus. But for the year, our guidance remains the same, around 15% to 20%. And next year, depending upon the order inflow, etcetera, we expect that, yes, we can reach closer to 20% of the group. Okay. And on the margin front, 10.5%, 11% we were looking at, so still given the commodity prices and that's why we are still maintaining the same or can we see 11% what we have done in the Q1, can even maintain or maybe some improvement is also possible there?

17:29 I mean, if you see current scenario, 10% to 11% would be the range. But let's see how the macroeconomic factors evolve after some time. Marginally things can improve also, but we think that 10% to 11% would be the right range. Yes. And now the main in terms of the inflow, So how how one can can look at the inflow, which we were looking at $2,025,000 odd crore. So how much we are looking at? Sir has mentioned that close to 32,000 crore, which that we have submitted is yet to be open. If you can also split it in terms of the segment wise, what we are looking at and what we have bid will be helpful.

18:23 I would like MD, sir, maybe. The segment wise, the fund taking it to more sector 28,000. Road sector maximum at 28,000. Okay. So for sir, already

20:35 28,000, which we are talking about, right, which includes it is actually transportation, which includes metros, right, it is not only roads, circuit transportation will be added that activity cover. Okay. Okay. Okay. But when you told us or some of that we just recently released nickel and punches are kilometer that they want to award this year of more than 4.5 record. Dolby Toll plus annuity, we will focus still transmission oil and gas or the other opportunity decline in terms of the inflow?

21:24 So there is no restriction transportation, but there is no restriction. Mean, only issue is keep when we cut the transportation issue, thing is on transmission side, on oil and gas side, those are the new sector where we are also developing our team. Probably, for example, oil and gas, maybe the government has come up with the incentive scheme, right? So we may not be fast checking that particular sector. Road we can take INR 20,000 crores of orders, right? There is no issue in terms of transportation, metro, whatever. So we are targeting both. I mean, for the current year, what we are targeting is because we are looking at each and every model of the route transport.

22:15 So we are looking at EPC, we are looking at Hem, we are looking at BOT, BOT and it goes to BOT, whatever. We all are comfortable we are more comfortable in each and every model. So what we are targeting for the current year, road sector around 14,000 on BOT, right? Total order book maybe that incoming order to open it. So around INR 14,000 crore of that inflow, which we are targeting in those sectors. Depending on that competition, it may come down, it may go up. I mean, it may in terms of capacity, in terms of capabilities, we are not basically there is no hindrance. We can go up to 15,000, 18,000. But then depending on that competition, which exists in the sector, so upon that will be other. So idea is this is our guidance, this is our target.

23:08 So plus 110% of that, we are comfortable. Okay. And lastly, appointed date See total equity investment for next stage around 3,000 thousand 300 crore for next years, which is already committed. Largely in next three years of time. Maybe October or November.

23:53 I think more or most of the precedences or condition precedence has already been over, already been complied. So I think we are confident we'll be getting that appointed date in the month of October, November, or Bakhi because those projects we have received in March, so obviously, again, that would be in the month of December. Bakhi Go Hemp project will be targeting the appointed date would be Okay, sir. Thank you and all the best, sir. Thank you. The next question comes from the line of with JM Financial.

24:45 Please go ahead. Yeah. Sir, what will be our revenue from T and D vertical in first quarter? So T and D vertical first quarter revenue was approximately crores. INR110 crores? Okay. So growth was mainly driven by highways only in first quarter? In three sectors, I would say transport, which includes, of course, highways. Second was PT and D because if you see previous quarter, maybe not the previous financial year, it was INR 75 crores and this quarter is INR 110 crores and also from the oil and gas business unit. So three sectors were the major contributors.

25:35 And what was O and revenue this quarter? ONG revenue this quarter is INR $2.70 crores. And our target for the entire year for ONG? Entire year for the target is approximately INR 1,000 crores. One plus. Okay. So secondly, on the order inflow guidance, so the total number will be maintained around INR 22,000 crores combined? The target, yes, our target is, Anand, you already explained sector wise, depending upon how the bid inflows happen, it could be plus minus 10% also.

26:22 Around the INR 20,000 crore mark? Correct. The next question comes from the line of Aditya Khedang with First Asset Limited. I wanted to know your views on the opportunity presented by the hydrogen rail program and which part of the entire value chain does the company expect to participate in? And like what meaningful growth driver can come in the medium term from this new project of the government? Yes. I mean, though it's a good initiative, of course, by the government, but presently, from our strategy viewpoint, we are not exploring that particular sector.

27:16 Okay. So are you not actively involved in this project at all? In the hydrogen train, no. Okay. Do you have any more questions, Aditi? No, sir. I just wanted to know if the company is, like, into the hydrogen program because somewhere I had come across actively into the fueling stage. That's it. Thank you. The next question comes from the line of Vinit with Investec India. Please go ahead.

28:06 Vineet, please unmute your line in case if you are on mute, and you may ask your question. Sorry. Am I audible now? Yes, Vineet. Okay. Perfect. Thanks. Sir, just a couple of questions. The first one is we've had a very sharp raw material inflation, particularly related to crude in Q1 and in the last few months. How confident are you that, that gets compensated by the escalation clauses, which we have across our projects? And the same holds true for other raw material commodities as well? Crude actually, particularly, I mean, for our it is not that crude, basically it's a bitumen, right? And bitumen linked product, which is, I mean, hydrocarbon product, hydrocarbon product, So particularly for bitumen, government has come up with direct circular, which is actually so it is over and above the escalation clause, which we are having in the contract because the price jump in bitumen is so I mean, it was so high, right? So which could not be covered through escalation, and they came up with the circular and they linked whatever bitumen, which we have been applying on the road construction activities during the quarter, we have been directly compensated by the government.

29:31 Yes, of course, on diesel side, that was not the case. So to that extent, we have our financials have been impacted, right? Diesel and related to the diesel, I mean, for example, we are utilizing aggregate, right, which is being crushed by the crusher where again some input is the diesel, right, or maybe electricity and all that, right. So to that extent, yes. So overall impact is there on the raw material side. And because of the diesel or energy related issues, energy related price hike, but if we talk about specifically bitumen, which is the air component, which is getting utilized into our project, that is very well compensated by the government, yes.

30:24 Understood. And how about, sir, for aluminum, steel, particularly in the power transmission sector? Power transmission sector in aluminum, copper, sea, not much it's not because of it is more kind of speculation, right? Because of that warlike situation, the volatility was there, and it was very much I mean, the price variation was very high, right? But it is not that I mean, it is not maybe it's not because of the maybe supply chain could be one of the reasons, but it is more of speculation probably. What we believe is that in the next three to six months, that would be again stabilized.

31:09 We are see, of course, it is impacting our project margin, but it is not that I mean, we have to that is getting spread over the period in two years of time, right? So whatever raw material which we are preparing for a power transmission project, which we are preparing in next one, one point five years, it is getting spread over there. So maybe for current quarter or whatever raw material which we are purchasing, right, to that extent, my price would be higher, but it is not getting compensated, right. We are not getting any escalation at least into power transmission project. But over the next two years, maybe this would again be normalized and the price would I mean, would not be that high, right, which probably we'll see next I mean, the current one or two quarters.

32:03 Understood. Understood. And sir, one bookkeeping question. If I look at the other income this quarter that was relatively on the lower side. Any particular reasons for the same? Yes. So if you see the impact of other income is basically the interest and dividend, which we received from the investment trust. So this quarter that payment was in the form of capital repayment. So that becomes the balance sheet item and not the P and L item. So overall, at the company level, we have received 3.5 per unit versus 2.25 per unit in the last quarter, previous year's quarter. And Intel's dividend income was lower. So that's why you see that difference.

32:51 Understood. Understood. Okay. Perfect. Perfect. Thank you so much. Thank you. Participants in the interest of time and finish to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue. The next question comes from the line of Bhavin Modi with Anand Rathi Groups. Please go ahead. Hello, sir. Thank you for the opportunity. Sir, how are you seeing the, you know, competition in the road sector? Like, we have been seeing some, you know, we are getting opening... Open, you know, in the more than the. They are still, you know, 15 to 20 meters always there, you know, in the base that are open. So how do you see the competition? So market they can get the competition.

33:38 Like, in going forward, the projects or this is number of projects. Projects. Okay. Second, sir, how do you see the competition in other sectors like elevated metro, railways, there also we are seeing the road players are entering to those space and the competition is elevated even that space. Competition to the highway sector capability going forward infrastructure sector.

34:29 Have power transmission elevated road metro capability opportunity or see even railway, you will find that government is basically considering that HAM model in railway projects also, right? Dedicated freight corridor, are talking about they would those projects would be awarded under HAM model. So if the government is also considering more and more participation on private side rather than the EPC.

35:22 So just now EPC come over and more and more capital is required, That also give that push to basically the competition would be lesser going forward. That's the only matter which I mean, that's the only thing which we have to see. Thank you. The next question comes from the line of Uttam Shriman with AXIS Securities. Please go ahead. Yes, sir. Thanks for the opportunity. So my question pertains to other income. So this first quarter run rate will continue in the next three quarter also? Yes. Okay. You said hello? Yes, please continue.

36:11 Go ahead. Yes, okay. And sir, what would be our CapEx guidance for this year and the next year? So for the current year, the CapEx guidance is of approximately INR 300 crores. And for the next year, it shall remain INR 200 crores to INR $2.50 crores. That's all from my side. And thank you. The next question comes from the line of with Wealth Management. Please go ahead. Yeah. Thank you for the opportunity. So, sir, if you can just give me absolute terms, how much distribution we received from the invert in the quarter? And are you planning to transfer any other asset to the invert in this year?

37:03 Specifically, I mean, amount of what you are saying is what exactly the gas flows we have received as a distribution from the Envid, right? This is around, I would say, 70 which we have received in the current quarter, right? And the second question you asked for is that other assets So yes, yes. So we have got I mean so for current year also, are targeting at least four asset would be transferred to NVIDIA. Okay. Sir, what is the status of the BharatNet project? BharatNet project, we are waiting for ROW. So we have started O and M activity, office and maintenance activity, which is also a part of that project.

37:58 But existing project, I mean, whatever existing project, which has been handed over to us, we already started. But we have not received so far that ROW, where that new CapEx can be done, right? So we are waiting and probably what we believe is that, again, in the month of October only, we'll be able to start in terms of its project, the project CapEx, yes. Thank you. The next question comes from the line of Deepashree Joshi with Ambit Capital. Please go ahead. Hello, sir. Thank you for the opportunity. I just wanted to understand why the trade receivables this quarter have increased, the external trade receivables. Yes. So external trade receivable largely includes oil and gas. I mean, we because we entered last year, and is a new sector for us. And so far, our understanding is once that project is complete, then only that project is getting I mean, that cash accrual or trade receivables is getting released. So maybe another I would say when we start again that next cycle, we'll start realizing those trades receivable maybe in the month of December to March, right? So because of that reason, and by the end of March or May, I would say, May 27, we'll be able to complete that project as well. So we'll be able to realize our whatever so this is largely because of oil and gas sector.

39:27 Otherwise, I think we are on same track. Okay. So for the current year, that is ongoing, the trade receivables are expected to stay elevated because you will receive payment Yes. Sure. Yes. Yes. Okay. So okay. And this current project is expected to get completed by March or May of next year, right? May, right. May 27. And this is the only oil and gas project that is there in the books currently? There are two projects, right. And we are mean, we are willing I mean, further bidding also we are through our subsidiary will be we keep on bidding and we will be doing more and more projects, right, in the all India sector.

40:16 Okay. Okay. Got it. Thank you, sir. The next question comes from the line of Krish Bhatia with Anand Rathi Group. Please go ahead. Hi. Thank you for taking my question. My question is on the warehousing. So how much capital will be deployed in the warehouse in the next couple of years? And how much capital is deferred as on date? So as on date, there is a deployment of around INR 130 crore. And for this current financial year 'twenty seven, have a plan of around INR $4.50 crores to INR 500 crores. The next question comes from the line of Shravan Shah with Dollar Capital.

41:02 Please go ahead. Yes. Sir, what is the trade payable as on June? Trade payable as on June is $10.73 crores, stand alone level. Okay. And Anand sir has mentioned in terms of the other income lower because of the lower interest and dividend from the Invite side. Just to get a number correct, so roughly in terms of the other income, we must have booked around close to INR 19 crores or INR 19 crores, 19.5 crores should be there part of other income in the Q1 at a stand alone level?

41:52 Yes. So no, no. So the total other income is around 68 crores, of which INR 20 crores is from the Invit interest and other interest income is INR 35 crores. And balance portion, as I already explained, was in the form of repayment of capital. So if we specifically talk about other income from Envyt, that is higher compared to the previous year's quarter. And that differential impact is in the balance sheet because the capital was repaid. Yes. Yes. Got it. Got it. Okay. Okay. Yes. Yes. That is it from my side. Thank you. The next question comes from the line of Karan Gupta with Gavi Capital.

42:42 Please go ahead. Yes. Thank you for the opportunity. Just quickly on the BharatNet project, there's been significant increase in OFC costs. So is that covered under your contract? Or how are you managing that? So we have, you know, what we have done... See, we are not getting any escalation. But at the same time, from our vendor, also having fixed fixed price contract for the optical fibers cable, right, for the first three years, right? So there is pressure, but we have to also see, I mean, how do we basically come out of this whole issue. But theoretically, yes, I mean, there is no escalation, which we are getting from our client, and we also are not supposed to pay any escalation to our vendor.

43:39 Fair enough, sir. My only question. Thank you. Thank you. Participants, you may press star and one to ask a question. The next question comes from the line of with JMP Financial. Please go ahead. Sir, what kind of revenue are we expecting from the BharatNet project in FY 'twenty seven? So in the FY 2027, we are expecting around INR 400 crores from BharatNet project. So this would be the other Infraprojects or will we be deploying the cables as well?

44:36 It is cable and operation O and M activities. See BharatNet includes both of cable as well as operation and maintenance of existing capacity as well, right? So order value is roughly $6.50 crore plus one amount of 400 crore. Right? Right. Right. Thousand crore is the order. So out of $6.50, we are we are going to do 400 in this year itself? No, no, not 400,000,000 out of that $650,000,000 it would be around 300,000,000 in CapEx side and the balance would be on OpEx side, right? No end of it. So we'll be starting it in second half and we'll do 300 crore revenue.

45:21 O and M is already started. And we'll be doing that CapEx. We'll be starting from second half. Yes. And we'll be able to do around INR 300 crore. Okay. And when do we expect to start the work on BEST project? BEST, see BEST, the work is already started. Only thing is because of that geopolitical issues, the battery prices and the dollar price dollar rupee movement. So we are just waiting for the time to where all those external factors comes to, I would say, which help I mean, comes to in favor maybe next few months of time, we'll be holding batteries and all that probably.

46:11 So that is on track, mean. It is already started. I mean, civil work and other items of that project is already in order or it is already under execution. And for railway project in MP? So can we see a 30% under execution this year from the project? And then 30%. Initially in first year, we should not target more than I would say 15%. Yes. Okay. And sir, lastly on Agra, as you mentioned that we may get the AD in sometime in October or November.

46:58 So can we see a 10% kind of execution this year? Yes. Very much. Yes. The next question comes from the line of Dia Jain with Safia Capital. Please go ahead. Hi, sir. Am I on this? Yes. Yes, we are. So what kind of revenues are we targeting for FY 'twenty eight and also the margin, sir? So FY 2028, we are targeting if we target 20% growth, probably it would be in the range of INR 12,000 crores, right, INR 12,000 crores kind of revenue, which we are targeting for FY 'twenty eight.

47:53 And the margin, yes, of course, we are expecting in the same range. But that again depends on how those macroeconomic situations pan out for the next six months basis that probably my margin may be on plus side or minus side, yes. Okay, sir. Thank you. The next question comes from the line of Sudip Bora with Ambit Capital. Please go ahead. Thank you for the opportunity, sir. Sir, I wanted to understand, like, in q one, we had more than 30% kind of a jump in revenue as compared to last year. So for free year FY '27, we are guiding 15, 20% kind of growth. So what is kind of stopping us from, say, 25, 30% growth this year considering we have a strong order book?

48:55 See, in current quarter, we witnessed around almost 30%. And now the second half would be more guided by how early and how fast we'll be getting that appointed date. Our target is that we'll be getting in the month of October or December, right. But if there is any delay, then probably we'll we may not have that kind of and that monsoon also, the pattern of monsoon, which we have seen in last two, three years, this is running up to the month of October. So we are practically starting on ground in the month of November, right? All construction related equity is already generally getting started in the month of November. So this is our own previous experience we are targeting.

49:49 So yes, that could be a possibility that where we can witness 25% of growth on annual basis. But I mean, if there's any positive growth, positive division, I don't think there would be an issue. But yes, that is our estimate. Okay. Understood, sir. And last time we had this labor issue, right, in q four, so that has got completely resolved? Or how is the situation right now? Yeah. Yeah. Labor issue is not there. Last time it was because of Bengal election and all that. Those issues were there. But... Yeah. Now there's no issue. Now it is more on material side, not on manpower side. Okay.

50:38 Thank Okay. You, sir. Those were my questions. You. Your question comes from the line of Parikshit Khandpal with HDFC Securities. Please go ahead. Yes, sir. Thanks for the opportunity. So my question is now we are building credentials in the oil and gas segment, and in the past, we have done transmission. So just wanted to understand from the export market point of view, especially Middle East, which is a big market for both oil and gas and transmission. So do we have any strategy over the next two, three years, given that the road sector has significantly slowed down over the last two, three years? So how are you thinking about expanding beyond India? And moreover, our transmission is, I would say, is a huge opportunity over there in India itself, right? At the same time, oil and gas also because of this war situation, right?

52:02 So what maybe government is focusing more. So what we I mean, oil and gas the same largely if we are working in the sea, right? But government, India maybe in oil and gas sector as well, right? So what we also believe is that for next two years, at least there are ample opportunities in India also. And though we are also I'm just saying, we are manufacturing transmission tower as well. So we have set up that manufacturing facilities, transmission tower to Mananika. And probably, we are expanding also. Mean, we already started in existing premises, but VM logos expand bigger for manufacturing of more transmission tower. But if we are able to let this the reason being why we enter into that manufacturing is because we are there is the challenge which we are facing So point is that market exists in India itself.

52:59 And we next year, if we believe that or we observe that, okay, are having more than sufficient facility in India. If we are able to get our Indian projects as well as we are having surplus capacity certainly we'll go to we'll move to the international market as well. But opportunity. So there is no need to basically at least for next one year, we are establishing ourselves in India. But maybe after one year, we will start looking into outside India. So one question is for agenda detail. I mean last week, I'll say we are thinking or we are booking that the roads are entering will pick up in India.

53:45 And every time we talk about every quarter, we talk about some trillions of opportunity on big from NHS, which doesn't convert on the ground in terms of ordering or execution. So, sir, what is... What needs to be changed on the ground or what according to you could change wherein the ordering comes back? Any color on the from the government interactions that now bids are going to come maybe towards the year end, maybe towards the second half of next year. So why would ordering is not happening according to you and what will drive it back? So once

55:21 policy final or or projects pipelines requirement actually interest could be used. The traffic congestion. So huge requirement logistics requirement we have government focus but Okay.

56:28 This is the last question, Investment to Pushna. So now we have INR 2,400 crores invested. We have pending INR 3,003 crores, 3,400 crores, which will take the total investments to 5,700 upwards of between 5,500 to 6,000 in next three years, which will be the equity investment spending and all that. We invested in all that. It's still beyond have 2,000 units in the in rate. So it will take the number to 8,000 crores. So the next few years of monetization, there'll be huge cash flows plus the dividend income. It's recurring dividend income over many years. So how do you think this will get distributed as you apply to the business? Because there seems to be a huge value, which is getting created. I mean, even if I multiply it 1.5 times, 1.3, 1.4 times price to both. So the number looks to be quite big, if I'm more than the market cap. So how do you think this will get utilized to work in the last time?

57:23 So for that reason only we I mean because it rolled that's why we are also equally interested in BOT projects just to deploy whatever cash accruals which we are having on our balance sheet. So that's how we are targeting that we diversified into more business where we can deploy our capital with a meaningful return. Now let's say, hence, we are targeting the transmission, we are targeting logistic, maybe also we are deploying, we are we believe that we are getting or we are hopeful of getting good returns over there as well, right? So and more beauty See, even, for example, if we are able to get INR 10,000 crore or INR 8,000 crore of beauty as well, so then also at least 30%, INR 2,400 crore project.

58:28 So and the government intent is also to have more and more private participation. So we are equipped. We are just waiting for right opportunities, right, where do I mean, how to and where do we have deployed this capital. And we are quite hopeful we will be able to deploy because in first of government private sector. So what I so far I mean, whatever limited understanding which we are right now, while having interaction with government authorities and that the news items, right. So probably we'll be able to deploy here. Thank you. Okay. Thank you. Ladies and gentlemen, we will take that as the last question for today. And I would now like to hand the conference over to the management for the closing remarks.

59:26 I would like to express my sincere appreciation to all your all our investors, analysts and stakeholders who joined our investor call and engaged with their questions, insights and prospective feedback. The introduction provided us with an opportunity to share our performance, strategic priorities and our roadmap for the future. We greatly value the confidence and continued interest that investment community plays in our company. We look forward to continuing this dialogue and sharing our progress with you in the quarters ahead. Thank you for continued participation and believe in our journey. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of HDFC Securities, that concludes this conference call.

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