PNC Infratech (NSE:PNCINFRA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to PNC Infratech Limited Q2 FY 'twenty seven Earnings Conference Call hosted by GM Financial Institutional Securities Limited. As a reminder, all participants' line will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Shah from GM Financial Institutional Securities Limited. Thank you, and over to you, sir. Yeah. Hi. Thank you. Good afternoon, ladies and gentlemen. On behalf of GM Financial, I'm pleased to welcome you all on PNC Infratech Limited second quarter FY twenty seven earnings conference call. We have with us from the management, the managing director of the company, mister Yogesh J, Mr. TR Rao, Director, Infratech Vice President, Finance and Accounts.

1:03 We will begin with the opening remarks from the management followed by a Q and A session. Thank you, and over to you, sir. Yes. Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call. Today, I have with me Mr. TR Rao, Director, Infratech Mr. Pankaj Agarwal, Vice President and Strategic Growth Advisors, our Investor Relations Advisors. The financial results and investor presentation have been uploaded on the stock exchanges and the company website for your reference. I would first like to share the key development in the industry, followed by key operational update of the company and highlights of financial performance during the quarter and half year ended 09/30/2026, post which we will be happy to answer your questions.

2:07 The highway sector started showing signs of recovery in quarter two of financial year twenty seventeen after significant slowing down in project awarding activity persisted over the past two years. During quarter two of financial year twenty seventeen, NHI awarded highway project of approximately two thirty route kilometers compared to 107 route kilometers awarded in quarter one of financial year twenty seventeen. Out of the 54 projects identified by NHI for awarding during the remaining period of financial year twenty seventeen, 19 projects have received approval, while another 17 have been appraised and business projects are expected to receive approval shortly.

2:57 It is expected that the pace of awarding would further improve going forward, supported by healthy pipelines of projects. As the government is considering development of approximately 51,000 kilometers of high speed corridors across the country over the next decade, a large number of new business opportunities are expected to emerge for highway developers. Apart from highway sectors, significant opportunity are emerging across other sectors. Continued government focus on railways, metro rail, flight corridors, power transmission, renewable energy and storage, mining, water resource development, including drinking water supply and urban developments, provide sustained growth opportunities for well stabilized Infratech Railway sector continues to offer a robust pipeline of new projects supported by government, focus on capacity expansion, freight connectivity and logistic efficiency.

4:05 The government has already identified five fourteen new railway infrastructure projects, spanning over approximately 40,000 kilometers with a total estimated investment of INR 8 lakh crore under the National Rail Plan and Vision 2030, underscoring significant large scale opportunity in the sector. The Percolt M based model for new railway projects built on the success of highway development is also expected to create expanded opportunities for a stabilized highway infrastructures player. Driven by India's rapid solar expansion, which reached over 100 gigawatt capacity as of September 26, following over 20 gigawatt additional in H1 financial at '27, The surging demand for complementary transmission network and battery energy storage system is unlocking significant medium to long term investment opportunities across the renewal ecosystem.

5:16 The projected capital expenditure of INR 6 lakh crore over the next five years in power transmission sector is aimed at evacuating over 900 gigawatt of nonfossil capacity is expected to provide robust opportunities in both short and long terms for Infratevelopers. While highway will continue to remain our core focus sectors, we are actively expanding into other core sectors to build a broader, more resilient order book that supports long term sustainable growth. Rising crude oil prices on account of the West Asia conflict have increased cost of key inputs, including diesel and bitumen, extending procurement, transport, construction and equipment operations heavily.

6:14 Though MOTH, NHA and AI have extended the monthly price adjustment escalation mechanism for eligible EPC and HAM projects through 12/31/2026, the actual impact of financial mitigation is effectively only to a limited extent. Consequently, persistent input cost inflation and partial escalation coverage continue to exert pressure on the operating margins of infrastructure's player. Now coming to the recent update on the company. On 10/12/2026, the Honorable High Court granted a stay on the effect of development order issued by the NHI against both the company and the concessionaire.

7:07 Our debt spreads were private limited accordingly. The company is in a position to submit bids to all the government authorities, including NHI, MODH and NHI this year. In July 26, company received the letter of award from the Airport Authority of India for EPC work of Pantaragar Airport in Uttarakhand. The contract value of project is INR $30.02 crore, and it is to be executed in twelve months in twenty four months. On 07/31/2026, the arbitration award was published in favor of company for INR $2.44 crore in connection with the NEPC project of Sonodi Gauravpur Section of NS 29e, executed for MRTS through UPPWD.

8:02 Our subsidiary, Yamna IVA Private Limited has received a rating upgrade to Care AA plus with a positive outlook during the quarter. To explore international growth beyond the domestic market, the company had incorporated subsidiary PNC Infratech LLP in Kazakhstan. This strategic move position to company to evaluate long term opportunity arising from Kazakhstan's planned USD 9,800,000,000 road infrastructure program in the country, over 3,000 kilometers over the next three years. As part of the company Andover to expand into international market, the company submitted a bid for a road project in Georgia to the road department under the Ministry of Infrastructure of Georgia in September 26.

9:02 Company's 17 fund based project portfolio comprises one BOT toll project, two BOT MOT project and 14 ms projects. Aggregate bid project cost of 14 ms project is over INR 17,200 crore. Out of total 14 ms projects, six projects achieved PCOD and COD, five projects under construction and one project of MPIDC financial project document have been submitted and for two newly secured project of NHI concession agreement signed and financial closure is in progress. Total equity investment requirement for the 14 project is INR 2,125 crore.

9:50 In September 2026, company infused INR $12.12 crore and the remaining equity of INR $9.13 crore to be invested over the next two to three years. Internal accruals that could be generated over the next two to three years should be adequate to meet the various quantity of investment requirement. Now moving on to our order book. Company's uneducated order book, including newly secured two NHI Hemp project, extended over INR 18,000 crore. Highway contract contributes 63% of total unexecuted order book, while water canal, railway and airport contract contribute around 21% and coal mining contract contributes about 16%.

10:47 On bidding front, we have submitted 17 bids to different authorities for total estimated cost of INR 16,600 crores price bids of which are yet to reopen. Now I would present the results for quarter ended 09/30/2026. Stand alone revenue in the second quarter of financial year twenty seven is INR $11.46 crore, which is higher by 17% as compared to INR $9.83 crore revenue in the second quarter of financial year twenty twenty six. The stand alone EBITDA in second quarter of financial year twenty seven is INR 138 crore and stand alone EBITDA margin for quarter is 12.1%.

11:41 Stand alone PAT in the second quarter of financial year twenty seven is 73 crore. Stand alone PAT margin for quarters is 6.3%. Stand alone revenue in the first half of financial year twenty seven is INR2664 crore, which is higher by 26% as compared to INR2119 crore revenue in the first half of financial year twenty twenty six. Stand alone EBITDA in the first half of financial year twenty twenty seven is INR $5.13 crore, which is higher by 85% as compared to INR $2.77 crore in first half of financial year twenty twenty six.

12:34 Stand alone EBITDA margin for the H1 financial year twenty twenty seven is 19.2%. Stand alone PAT in the first half of financial year twenty seven is INR $3.43 crore that is 12.9%. Console revenue in the second quarter of financial year 'twenty seven is INR $13.22 crores, which is higher by 17% as compared to INR $11.28 crore in the second quarter of financial year 'twenty six. Console EBITDA in the second quarter of financial year 'twenty seven is $2.79 crore, which is higher by 10 as compared to INR $2.53 crore in the second quarter of financial year twenty twenty six.

13:25 Console EBITDA margin for quarter two of financial year twenty seven is 21.1%. Console PAT is INR 115 crore. Console PAT margin for quarter two of financial year twenty seven is 8.7%. Console revenue in the first half of financial year twenty seven is INR 3,011 crore, which is higher by 18 percentage compared to INR 2,550 crore in the first half of financial year 'twenty two. Console EBITDA for the first half is INR $80.02 crore, which is higher by 29% as compared to INR $6.20 crore in the first half of financial year 'twenty six.

14:14 Console EBITDA margin for first half twenty twenty seven is 26.6. Console PAT in the first half of twenty twenty seven is INR $4.47 crore. Console PAT is 14.8%. On a stand alone basis, our net worth as on 09/30/2026 is INR 6,143 crore, whereas standalone debt from banks and financial institutions and Infra corporate deposit is INR $13.12 crore. This translated to net debt to equity of 0.21x.

15:01 Total cash and bank balance, including current investment is INR $12.52 crore. Considering the total cash and bank balance, including current investment, the net debt equity ratio on a stand alone basis is 0.1. On a consolidated basis, our net worth as on 09/30/2026 is INR 7,248 crore, whereas total debt is INR 5,912 crore. This translates to net debt to equity of 0.82x. The total cash and bank balance, including current investment is INR 2,936 crore. Considering the total cash and bank balance, including current investment, the net debt equity ratio on a consolidated basis comes to 0.41.

16:01 With this, we now open the floor for question and answer. Thank you. Thank you very much. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinion and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. The The first question is from the line of Shivan Shah from Daulat Capital.

17:03 A couple of questions. Just one clarification before that. This $2.20 INR $2.44 crore arbitration is not booked in the Q2 revenue. Yes, because see this arbitration just award has been made. We are to realize this amount. See only upon realization of amount only we consider into the revenue. Is there any toll revenue or the payment which is still pending for the monetization, which is we have booked as part of revenue in Q2? No, no. Okay, got it.

17:50 Okay, got it. So just a couple of the in terms of the first on the guidance front, so anything in terms of the INR 6,000 crore revenue for this year and INR 7,500 crore for next year and 12% margin. So any change in the guidance? No. As of now, no, there is no change. Maintain the same guidance. Okay. And in terms of the inflow also INR 15,000 crores, so I think INR 6,000 crores we have already received. So that guidance also remains the same. Yes, it remains same. Okay, okay. And in terms of the total revenue and the JGM revenue that last time we have said this year INR500 crores, INR500 crores this year, full revenue and next year also the similar INR500 crores and JJM INR7800 crores this year and INR1000 crores next year.

18:51 So that also remains the same. See, there will be slight moderation in the core revenue. This year, we are expecting revenue from the coal mining project between INR $3.50 crores to INR 400 crores. In case of water, so this year we are expecting around INR650 crores out of INR750 crores last time what we had mentioned. And the remaining figures will come same, because quarter in June next year it will be around INR500 crores and the water also will be around INR1000 crores. Okay. Okay. Got it. So and also the couple of balance sheet items, if you can help me in terms of retention, unbilled revenue, mobilization, and data, water datas.

19:46 Sharma, this is slow down. Yeah. Management is 272 per watt. Okay. Okay. Is 58 crore. 58? Yes. Only 58 crore as of September 30. Okay. Okay. And? Unbilled revenue, ham debtors, water debtors? Water debtors. Un... Unbundled revenue is $4.90 crore. Okay. Okay. Ham debtor is 418 crore. 418. Okay. Water data? 18. Water data is 786 crore. Okay. Okay. So there is a reduction in the water data, sir, decently.

20:35 Okay. Okay. Got it. And and in terms of the the equity, the balance that we need to invest for FY '28 '29, particularly on the BES front also, just wanted to understand both HAM and BES, how it will be invested? The total liquidity requirement, including the two HAM project is $9.13 crore outstanding and which is to be invested in next two to three years. Yes. So in '28 and '29 will be how much in second half, I think we have given in the presentation. The targeting for '28 is $4.60 crore and the balance will be in the financial year 2020 or 2029.

21:26 And for BES? There is an update on the best project. See, I want to share with the want to share with all the participants. This project was awarded by NHPC and the power purchase agreement was supposed to be executed with the NHPC within one year from the data power. And the signing of power sale agreement by NHPC with the prospect to discounts is one of the key condition precondition before signing the PPA. However, NHPC could not sign the PSA, power sale agreement with the Discom.

22:15 Consequently, power purchase agreement also could not be signed within one year stipulated time from the date of award. So we saw an extension of one month from August 31 till September 30, but both agreements could not be signed before that date. So as per the stipulations of the RFP, since these agreements have not been signed, the LOA was issued, stood canceled and the big security submitted by us, they are returned to us they are refunded to us. So we if you can say, we safely exit from the project and we related our big security.

23:02 So this project will be no longer will be part of our order book. Okay. And lastly, once the we got the stay order from the High Court, now we are bidding And whenever the in November, the final hearing is there, so things will remain as it is, so we should be able to keep on participating. Yes, yes, yes. We are participating. We are participating. We should be able to participate further also. Okay, okay. Thank you and all the best, sir. Thank you. The next question is from the line of Parikshit Ganthpal from HDFC Securities. Please go ahead. Yes, sir. Hi. So my first question is on the diversification.

23:53 So now we were earlier looking to diversify from roads to water. So that has not played Industry is not doing well. Payments are not coming. Then we thought we'll do into renewables, then this... That sort of gets canceled. And whatever is happening on inflation on the battery side, I think it's a good exit for us that we did not continue with this project. So and then now you're planning to move beyond India to Kazakhstan despite giving a very robust commentary on upcoming pipeline in India. Somehow signals are mixed. I'm not able to relate how the growth will come in the order book beyond growth, whatever order we are winning is in road or MDO. So how does one look at order book growth in the near future this year, maybe next year? So how are you thinking, how is your internal strategy team thinking to grow from here in terms of order backlog or revenues?

24:47 See, Mr. Parshin, our focus will continue to be on the highways given the very robust pipeline of opportunities that are available in the highway sector across the implementation models, including have EPC and as well as the BOT tool. So highways will continue to be our focus sector to expand our business. Nonetheless, that we in case of water, yes, there are certain issues. But if you see during the current quarter ending September 30, during three months, the government has released INR $2.67 crore as our pending payments. Accordingly, what was the outstanding as of June 30 now reduced substantially as of September 30. Going forward also, we see that we'll get the payments timely release of the payments.

25:47 So water sector, maybe end of the day, there should not be any issue. And similarly, in the irrigation sector also, there was some encouraging development. During the quarter ending September 30, we received INR 183 crores amount from the government of Andhra Pradesh. These are substantial realization we could get it from the government of Andhra Pradesh. And we revenue, we booked around INR 500 crores of revenue booked, and we have done around INR80 crores of work during the quarter two. So irrigation is also the situation is improving. With regard to coal mining, there are initial hiccups because of the severe resistance by the locals in vacating the and the encroachments up there. But there also now things are getting improved.

26:36 And the month of October also we could able to do better education at the coal mining. So this MDO and all these lot of other projects are coming. So we don't see any issue. Only issue has happened in the NHPC, but it is also it's a blessing in disguise because due to ongoing West Asia conflict and all, there is a steep increase in the prices of the input materials and the other things, including batteries and also prices of the logistic costs. So this is the we whatever we though we exited from the project, it is better for us. So in case of our Kazakhstan project, it's a road project because we have more than three decades of core expertise in the road sector. So we don't see even if you secure some projects in Kazakhstan, we should be able to execute it. Similarly, the project what we had submitted in the Georgia is also is a gold project. So in these countries, we are targeting the road projects where we have our core competency.

27:40 So we should be able to execute these projects ready to see. And apart from Kazakhstan, we are also pursuing opportunities in The U. S. Pakistan as well as The United Arab Emirates. And we are doing And as of now, we submitted as of my MD has mentioned, 17 bits we have submitted, which are under evaluation, price bits of the 17 bits are to be open, comprising 13 EPC bids, three hand bids and one TBCB bid for the power transmission for the various projects. So if you see overall, the rules will remain our core area and with a 63% of our order book comprises road sector projects.

28:28 And other diversification also, are doing in a very calibrated way. And also, we find some synergy between the roads and other sectors, for example, railways and other things, linear projects. So we see that the expansion into other sector will enable us to maintain sustainable growth and the resilience in the challenging times. I totally understand that, but I'm saying the opportunity seems to be compressing because the bid we are seeing even in roads, which is the largest segment, the way the crazy bids which are happening, I don't know whether people will make money in those bids. So the chances of us winning despite there being slowdown in ordering at a very aggressive rate doesn't add up to the margins or the profitability or to growth.

29:23 Power, as I said, best you exited, I mean, good that you exited, but I don't know what's the opportunity then on the best side for us. That, again, a growth driver has somehow turned muted. Railways, I don't see any major orders winning wins by you. So the concern is over the next two years, how do you how does the company grow, sir? That's the challenge that I'm not able to understand right now. So you guys maybe you can touch upon this, I mean, how are you thinking the growth from here on, on a base of INR 6,000 crores revenue, which you are saying this year, you would likely do, given that we had a first half a weak first half, mean you have to do almost INR 3,500 crores of revenue in second half. So it probably looks to be a little challenging.

30:10 So on this base, how do you think you can grow at 10%, 15%? See, given the order book of 18,000 crores, order book we are having, unequipped order book and patently that order book doesn't include the best project. See, right from the beginning, we never included the best order of 2,000 crores in that order book. Now our order book stands at INR 18,000 crores. Such kind of order book definitely should be able to achieve that the INR 3,000 plus turnover in the next six months in this H2. There should not be any we don't see any major challenge achieving the 30% growth what we've given the guidance.

30:57 So and going forward also, even at the end of the current financial year, still we'll having an opening balance of INR 15,000 crore of uneducated order book. Even if you don't consider any new orders, if you consider new orders, there will be further order. Second thing in the case of competition and all, yes, there is a competition on EPC and a smaller sized projects. We see that the competition will be lesser in the large scale, large sized projects and where there's a fund based projects like HAM and other kind of a thing where the investment needs to be made. So there, we don't see any kind of fierce competition. So we expect some projects to come.

31:43 And also then, as I said, we are expanding into TBCB projects. Are huge number of projects are coming. And also in the railway, more than INR400 crores 400 projects they launched across the zones, railway zones. We are bidding very actively in railway and we expect to secure some projects in the railway sector also. Just the last question on the bitumen Sorry and the diesel to interrupt you, Parikshit. Can you please rejoin for a follow-up? There's a long queue. No issues. Sure. Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.

32:29 Sir, thank you for the opportunity. So sir, first question again on the guidance part. So we have done INR 2,500 crore, but that includes, I think, 200 crore of claim, which we received in last quarter. So if we take that out for this first half, we have done only 15% sort of growth, while we have guided for 33% growth, thousand 500 going to 6,000. So sir, and if we exclude that $217,000,000, even I think margins are lower than 12% for the first half. So for the second half, this INR 6,000 includes that INR 200,000 or excludes that INR 200,000? And secondly, from INR 2,300 thousand, now we have to do INR 3,700 crore if we are excluding that claim, one time claim.

33:18 So can we achieve sir INR 6,000 crore and 12% for the full year? If you see the pattern of the thing, first half of the any financial year will be less than the second half because of the monsoon and other kind of thing. So what we achieved INR2664 crores we achieved during the H1. So that includes INR217 crores of arbitration award we received. So the total would be INR6000 crores, INR6000 crores what we have given the guidance, that would include the arbitration award. We are not excluding the arbitration award amount from that. So remaining revenue to be earned is 3,336 crores.

34:09 Given our order book and these five major road projects are going on, five hand projects and two highway projects of MSRDC. So these projects are going to full swing and many other projects also we are going to start in Q3 and Q4, the projects which have been recently awarded. So we don't see any major issue or any major challenge in achieving INR 6,000 crores in the current financial year. With regard to achieving the 12% EBITDA margin, see because of the INR2664 crores in case of the delta will be there in the second ring and while the fixed war has been remained the same, so that we should be able to maintain the EBITDA margin of 12% as of now.

35:02 And this 12% is on remaining INR 5,800 crores, sir, because otherwise this INR $2.17 crores is pure profit only, right? So otherwise, your core EBITDA would be like 9% only or something like that? We are giving the guidance of 12% EBITDA on the INR 5,800 crore excluding the arbitration claim. Okay, sir. And that you mentioned bitumen is having some partial impact on the Infratech So this 12% is taking into account that impact also, right? Yes, it is taking Okay. Into that And secondly, sir, on the since our share price has fallen so much and we have decent amount of cash in our balance sheet and while we have some further use also, but we will be selling down, I think, operational assets also as we have done in the past.

36:00 So I don't think we will have any debt of funds as such. So have you thought about doing open market buyback at these sort of prices, which are probably one fourth of the prices two, three years back? So is there any stance on of the management on that? We are thinking in the same line, Dubai Way. Okay, sir. And sir, can you also comment on the pipeline? So you mentioned that you have submitted bids of INR16600 crores, which are yet to be opened, but otherwise apart from that, how is the pipeline looking like and especially if you can bifurcate that between NHI and others?

37:01 See in in case of pipeline apart from the bids what we had submitted 17 bids of 16,600 crores. We identified total around 80 projects. There are many projects which are there in the market and which have been launched already by the different clients. Out of that, we identified 80 projects, comprising 35 EPC projects, 25 HAM projects and the 20 DBOT toll and TBCP projects. The combined estimated value of these 80 projects comes to around INR 180,000 crores, which are to be bid maybe next, I would say, two to three months, end of till end of January. These bids will be submitted.

37:48 And if you see the bifurcation between MODH, NHA and other clients like railways, NHA, DCL and state government bids and other things. So NHA, MODH and NHA, DCL would be around 60% to 65%. And the railways and other will be around 35% to 40%. Okay, sir. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Deepak Paraswani from Swan Investment.

38:35 Sir, just continuing on the international projects. If you can share your broader thought process, how we are thinking in terms of this as a from the business point of view in terms of the what is the kind of investment capital allocation? And then what is the kind of orders? How is the competitive landscape? And how we are planning to manage supply chain and labor issues? All these aspects, you can share your perspective, that would be really helpful. And eventually what kind of business we are looking out over a period of time? See, the international arena, as of now, we are pursuing opportunities of a non fund based projects such as EPC projects.

39:30 So as of now, we are not looking at any fund based projects like where the investments need to be made there. So even if the international project also, there won't be any significant capital requirement except working capital needs. So other things, this we are also looking at giving preference to the projects that are being funded by World Bank and in case of Asian countries, it's ADB. So that there'll be continuous flow of funds, any without affected by the local issues. Second thing, we have a team. This is a team of people, they are visiting these countries very frequently, and they are assessing their local conditions and other things, and they are having some kind of a tie up. We are having also having a tie up on a country to country basis with the local players. So we can provide the local support, including logistics supports and material supports and other things.

40:33 We are doing the all kind of a due diligence that would be required before submitting our bids. With regard to competition, yes, there is a competition in there because international players and mainly from China also participating in these bids. So of course, the competition will be there at a domestic level as well as international level. So that anyhow we have to navigate through. And in terms of... Third to have a very minimum raise, the projects what we are focusing at an international level is a highway projects where we have our core competency and they were more than three decades of experience. And what about the size of the order, which we would look it out in these kind of projects, especially in the international market?

41:28 See, in case of Kazakhstan, as my MD said, more than INR 3,000 crores projects, the 3,000 kilometer length of projects they initiated with a USD 9,800,000,000, which comes to US4.6 trillion dollars of the local currency. So this is substantial kind of a thing in there. Similarly, in Georgia, Albuquerque, also the road projects are coming up. So that we also have a substantial value. Thank you. The next question is from the line of Vaibhav Shah from JM Financial Institutional Securities Limited.

42:14 Please go ahead. Sir, what is the amount of cash and current investment sitting in PNC Infratech Total cash in PNC Infratech is INR $11.15 crore. It was roughly INR $10.50 crore as of March. So how has it increased? It it is increased due to the interest accrued on the FDR, which we have invested in the PNC Infratech Limited. Okay. Okay. So secondly, when do we expect to receive the appointed dates for the two new HAMs and the MP HAM? See, MP HAM, we are expecting appointed date before December 31.

43:05 In case of new half projects of NHA, we are expecting a budget date in Q4. We are sorry about the timelines for NHCI HAMs, it should come by Q4? See, NHCI HAM, we signed our concession agreement on July 16. We have five months period for achieving financial closures that comes to around the December 13, whereas the energy has got two forty days to fulfill their condition pursuant, including provide the 80% of the land. So that comes to something around in the middle of March. And it has got time.

43:50 So land acquisition is in process. In the both the cases, around 90% of the ROW three gs, the HUD and three gs is in progress. They are disbursing the funds to the landowners. So three gs is in progress. And in our case, within five or one hundred and fifty days from the date of signing of agreement, we should be able to achieve the financial closure. And also we see maybe post that in one month one month, we should be able to provide the land 80% of the ROW. And the appointed rate is expected to be declared during the fourth quarter of the current financial year. So in case it comes in Q4, so what execution are we targeting from those projects in percentage terms in FY 2028?

44:40 See, these projects are to be completed two years, two seven thirty days. So it will be something like a 35%, 65% of ratio. So FY '28, we expect 35 to 40% progress and the 60% progress in FY 2029. There won't be any significant work done during the FY 2027 in case of NHA two hamburgers, whereas we let you some progress, certain amount of work done in case of Bhopal bypass of FTRDC because the appointed rating is expected to be declared during FY during Q3 of current financial year, that is before December 31.

45:28 So on order inflows, you mentioned that we maintain the guidance of INR 15,000 crores. Now since the solar order is canceled, so the order inflow for this year is roughly around INR 3,800. So we almost require INR 11,000 crore plus inflow in the second half. So how confident are we on achieving the 15,000 crore inflow guidance? No, no. See, as I mentioned, our unequivoted order book of INR 18,000 crore doesn't include solar project. We never included solar project in our unequivoted order book. That is one part of it. Second thing, other inflow, we had mentioned INR 12,000 to INR 15,000 crores. So already, we achieved INR 4,060 crores.

46:16 Remaining INR 8,000 crores to INR 11,000 crores. That gives you the pipeline of, as I mentioned, 1.8 lakh crores of new projects we identified. And also, we submitted bids for INR 16,600 crores price bids are at to be opened. So as of now, we are still confident that we should be able to achieve the guidance, whatever we have given the guidance for the order book in FY 'twenty seven. And out of the 200,000 crores, what are you targeting from international markets? So international market, per se, we are not targeting international market. So this whatever order book is, we are considering only domestic. So because international market we just entered, so we have to see those dynamics and other things. As of now, we are not considering any order from the international market in the current financial year.

47:13 Sir, lastly on the FX sale, so we had sold 12 assets. So can you just give the total amount what did we receive? What is yet to be received? And where have we used the cash so far? The total consideration we have received from the dual asset monetization is around 2,517 crore. Out of that, 150 crore is yet to be received from the buyer. The total money invested in FD and credit limited. Voice were disconnected in between. Was the... Yes, sir. We lost your voice in between.

48:05 The total consideration we received from the monetization of 12 asset is INR 2,517 crore. Out of that, 158 crore is yet to be received from the seller. And the remaining amount is invested in the PNC Infratech Limited in the and in PNCINFRA TAC Limited in the shape shape of of FDR FDR as well as mutual fund. If you have received closer to 2,300, 2,003 and 50, so of that 1,100 crores is sitting in PNC Infratech Holdings. So the the remaining 200 crores of that, partly, it is in the current investment, roughly $7.50 odd crores. Where is the remainder amount?

48:51 Remainder amount INR600 crores. The remainder amount is INR115 INR115 crores in PNCINFRA holding and around INR800 crores in PNC Infratech Limited. Hello? Okay. Okay. Got it. Got it. Okay. Thank you, sir. Those are my questions. Thank you. Ladies and gentlemen, you are requested to restrict your question to one per participant. The next question is from the line of Vishal from Pragoda's Liladar Capital. Please go ahead. Sir. Thanks for the opportunity.

49:39 Sir, I think, I mean, you did mention cash in Infratech and stand alone also. So what is the reason of increasing stand alone debt when your cash in the books, I mean, stand alone debt has almost doubled in the last six months? The debt we have taken for the purpose of the equipment finance and for working capital. The investment we have made in the mutual fund for the long time long purposes, So we have taken the short term loan from the banks, which is for the two months or three months purpose. That is why we have taken the loan from the bank. Okay.

50:26 Rohit? Excuse me. Okay. Loan we are taking as stand alone loan, that is also our intra corporate kind of loans we have taken from our subsidiary companies, where these surplus cash is available. Okay. Okay. And then I think is it fair to say probably in terms of investments and cash in the books, I mean, we have almost like INR 4,000 crore of, investment plus cash, investment in various hands and all. Is that fair to say, that number? Yes, 4,000 crores investment in hand. Total cash and bank balance on the stand alone basis, 3,000 crores approximately.

51:17 INR 3,000 crores no, 1,000 crores. INR crores. 2,900 crores. On a consolidated basis, we have cash and bank balance of INR 2,900 and and $30.36 crores, around INR 3,000 crores. 3,000 crores cash and bank balance on a consolidated basis. Plus, we have invested in the SPVs. INR 4,000 crores invested in the SPVs. Okay. Okay. Got it. And one last thing, is there any change in the deposition policy for us in this first time? There is no change in the policy of the depreciation in the financials. Okay. Fine, sir. Thank you so much, sir. I'll come back in the queue. Thank you.

52:04 Thank you. The next question is from the line of Jaanam Shah from Aquarius Securities. Please go ahead. Yes. Hi, sir. Thanks for the opportunity. Just one thing on the our interest in PNC Infratech, while there has been a stay from the high court, any specific cause that we have incurred during the quarter, maybe for the penalty, maybe for the suspension of the tool collection, maybe for some reconstruction or anything on that. But during the second quarter, I don't see any major change in the standalone, but has there been anything booked in the subsidiary during the quarter for anything for this over the express? No. See, the NHA has not imposed any penalty because defect that have been notified, we rectified all the defects within the time lapse stipulated in the contract.

52:53 So there's no any kind of a time lapse or anything in rectifying the defect. So NHA has not imposed any penalty. And also, there's no recovery made for the toll loss. So the in quarter two, we have not booked anything. Only the expenditure what we have booked is the expenditure incurred on the replacement rectification, which is very minimal. Okay, Yes, that's it. You very much. Thank you. The next question is from the line of Vivek Shah from Infratech Capital. Please go ahead. Yes. Hello, sir. So my first question is regarding the cash. So we have around INR $12.52 crore cash in stand alone, INR $11.15 crore of cash in the PNC Infratech What is the ICD amount given the PNC Infratech the stand alone company?

53:50 The ICD is not given by PNC Infratech It is given by the operational SPV subsidiaries, which is around INR $4.94 crore. So that is part of my stand alone debt, right? That is part of stand alone debt. Understood. And the rest... Debt of the 900 odd crores is my debt from banks and financial institutions? Yes. Banks and financial institutions for equipment financing and the... For short term working capital purpose. Understood. So what is the cost of debt and what is the rationale, say, for holding the cash and not utilizing the cash and taking the debt? How much are the earnings on the investments? And what is our cost of debt? Is there any arbitrage you are seeing?

54:41 We are we will evaluate always on monthly basis what is we are getting and we are what we are paying on the working capital loan. So accordingly, we change our loan and investment decision. Okay. So currently the arbitrage, so we are doing this. Is it fair to say that? We are not for the arbitrage we are doing it. See, if you see INR1300 crores of debt we are having as stand alone, which comprises INR500 crores of one company subsidiaries, intra corporate deposit, intra corporate loans. So that is our own company's surplus cash is available in those SPVs.

55:29 So we are taking. And another major part of more than INR 400 crores in the equipment finance, which is that there is an obligation to take the debt in the equipment finance because that's about the practice industry practice. Whenever we go for a equipment purchase, we take five year loan. Yes, that's a term loan. And the remaining, there is very minimal kind of a thing what my colleague said, is the working capital requirements, we take it short term borrowings from the banks where the rate of interest is very competitive. So it is not that per se for any arbitrage, but it is a corporate debt working capital loan, what we are taking is very thin. Whenever we get realization from the clients of our outstanding payments, so this will be paying back. Where are the deposits what we are making cash and bank listing on a long term basis under mutual funds primarily.

56:24 Understood, sir. And sir, one more thing regarding our order, like we have got the stay. So what is the way ahead there now? What are the like what are the next steps? See, we got the stay. See, next date of filling is on November 26. The other says Board parties may file their arguments, written arguments including NHS reply. So final arguments will happen. These because as in the REIT petition, we ask for the crashing of the department orders. And under the CPC, we ask for interim state. So interim state that court granted because in case yes, this in case court gets convinced about the see illegality of the development, the development orders may get cash.

57:25 Thank you. The next question is from the line of Mehul Jain from Siddhan Partners. Please go ahead. Yes. Am I audible? Yes, sir. Yes. Yes. Thank you. Thank you for the opportunity. I have two questions. One, with respect to this INR 3,000 crores, if I understand it right, roughly INR $9.32 crores is the equity commitment, what we have, balance equity commitment, including INR 400 crores of TAM. So first question is about the balance, 2,000 crores. Is there any plan that we have formed up or we are trying to look at how to deploy this? And my second question is that since we are now looking at even overseas opportunity, is it right to say that we are not able to find the right growth opportunities within domestic space?

58:21 That is the reason we are exploring this because in past, I think, overseas geography have not turned well for the Infratech company. If you look at probably two thousand two thousand ten, 2011 to 2020 decade, lot of companies have all in those aspect. So any thoughts around this stuff? The first question is that you say that we have to invest in the ongoing projects where some equity of INR 900 plus crores we need to invest, where we already secured these HAM projects. Then we are pursuing 25 HAM projects of an estimated cost of INR 50,000 crores. So even if you take some if you get some of the projects from this particular model, so we need to invest further equity into these projects. And also, we are pursuing both the TBCD for transmission projects as well as the DBFO T2 projects.

59:24 So these projects are around 20 projects of a total estimated value of 95,000 crores. Should we secure any of these projects, some of these projects, which we are confident about securing the new projects, there be a fresh equity requirement in these projects. And the remaining INR 2,000 crores that is available, then we delayed this for the equity purpose. In case of international, see, international thing projects that have been coming in Africa and other earlier, so there had been some issues. But now the projects are coming in the as well U. Countries, those like Pakistan, Kazakhstan and all. And second thing is these projects are in the rural sector primarily.

1:00:14 So there, our expertise lies. So there, we are pursuing. So and also, as I mentioned, these projects are primarily funded by World Bank and ADB. So don't foresee any kind of a funding issues or any kind of any interruptions in the payments. That is one safe area we are looking at. And it's not like that, that's in the domestic, we are not able to secure projects in the domestic sector. That's why we are traversing into international sector. But to complement our domestic thing and to broaden out horizon, we are going into international sector, which is something like a complementary in nature. And how will the return margin profile, sir, domestic versus overseas? Since we don't have any first time experience in the overseas thing, we can't say, but we are targeting the similar kind of return, what we are thinking at 12% to 12.5% EBITDA in the domestic. We also look at the similar kind of thing in the international market also with LBT.

1:01:17 And although we are not pursuing any fund based projects over there, so initially we are pursuing the cash based projects like Brazil and in some cases maybe item rate. Understood. Understood. No, I think that's it from my side sir. I'll get in touch offline. Thank you very much. Yes. Thanks. Thank you. The next question is from the line of Vaibhav Shah from JM Financial Institutional Securities Limited. Please go ahead. What is our CapEx guidance for '27 and '28? Sir, please go ahead. Hello?

1:02:04 Yes, sir. We can hear you. Hello? Sir. We can CapEx hear guidance for '27 and '28? Sir, you can go ahead with your answer. We can hear you. Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Ladies and gentlemen, thank you for patiently holding.

1:02:58 We have the management line reconnected. Over to you, sir. I think Mr. Vipassar was asking some questions. Sir, what is the CapEx guidance for FY '7 and FY 'twenty eight? Revenue guidance? CapEx. CapEx. Financial year 2028, we are giving the guidance of around 150 crore CapEx. Sorry, INR 27? INR 27, around INR 200 crore. So first half is already INR 150 crore?

1:03:49 Already we have made the CapEx of 155 crore and for balance period, we are going to total amount is INR 200 crore. So probably INR 50 crore only in second half? Yes, yes, yes. Sir, secondly, you mentioned that you are quite confident on achieving order rates of 12 to 15,000, so incremental eight to 11,000 in second half. But if the NHA orders doesn't come in come in our favor and if the ban continues post November, then still we are able we are sticking to our guidance or there could be a recurring guidance? See, it's a hypothetical kind of a scenario. So we hope that our stay or the relief would continue beyond number 26 also.

1:04:41 And the NHA is coming out with a large number of projects, both on HAM and SLST. Are bidding in railroads. And also there are more than 400 project opportunities in railways. So still we are hopeful of getting the 8,000 to 11,000 new orders before March 31. So let me put it other way, what would be our NHI share in that 8,000 to 11,000? Sir, NHI share will be majority share from the NHI, more than 50 to 60% from the NHI and the MOT and I think, NHABCL. And the 30% to 40% will be from the non energy. Okay. Okay. Thank you, sir. Those are my questions. Thank you. The next question is from the line of Deepashree Joshi from Ambit Capital Private Limited.

1:05:36 Please go ahead. Hello, sir. So my question is in terms of your Canary project. What would be the guidance for FY 'twenty seven and 'twenty eight? Yes. Actually, as of now, the work we have caused in the work because the water is water, they release water into the canal system. Effectively, get around six months working time in a year. So we are expected to resume the works from the middle of November. So in the current financial year, we should be able to execute another 60 to 70 gross work. And in FY '28, we are targeting around 400 course work.

1:06:24 See, will give the granted extension of time up to thirty one, twelve, twenty twenty eight for completion of the project. It. But we only have done $4.95 crores work already we have integrated. Right. So now it's about INR $7.90 odd crores left, right? Yes, yes. So that we should be able to do during the next two financial years. And as we had mentioned that we received around INR 183 crores money we received from the government, which is a bit encouraging development during the current quarter we received it. Okay, got it.

1:07:10 And in your mining project, so you did about INR $2.60 crores done about INR $2.60 crores in the current year till date, but you're guiding only INR $3.50 crores to INR 400 crores for 'twenty seven. Why are you lowering your guidance for the second half? See, actually, it's not INR $2.50 crores. See, total we have done around INR 160 crores. INR 160 crores will be till the end of September this thing. So we are expecting another 200 plus crores during the h two. Okay. Got it. And my last question is, so you've guided... You're guiding 7,500 crores for FY '28, right? But with the best project now canceled, are you still sticking to your guidance of INR 7,500 crores, right? Will you get the visibility for that, sir?

1:08:13 Yes, it does. See, excluding the best project as of date, we have INR 18,000 crores unequipped order book. We are expected to execute another INR 3,000 crores plus INR 3,300 crores in the current financial year. Even with a given order book, we'll be opening the order book for FY 2028 would be INR 15,000 crores, plus whatever the new orders that will be securing during the H2 of the current financial year. So with the kind of order book of around more than crores, so we should be able to achieve INR7500 crores, which is around 25% to our FY 'twenty seven. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

1:09:11 Yes. Thank you everyone for your active participation in our earning call. In case of further queries, you may get in touch with the strategic growth advisors, our Investor Relations advisors or feel free to get in touch with us. Thank you. Thank you. On behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.