PSP Projects (NSE:PSPPROJECT) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the PSP Projects Q2 FY 'twenty seven Earnings Conference Call. 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 Please note that this conference is being recorded. Now I would like to hand over the conference to Ms. Krishna Patel. Thank you, and over to you, ma'am. Thank you, Abharat, and good evening, everyone. Welcome you all to PSP Projects Limited Q2 FY 'twenty seven and H1 FY 'twenty seven earnings conference call. To take us through the results and to answer your questions, we have with us the management of PSP Projects represented by Mr. Prahladhaya Patel, the Chairman and Managing Director Ms. Puja Patel, the Chief Executive Officer and Ms. April Patel, the Chief Financial Officer.

0:51 Please note that the discussions that we may have today may contain certain forward looking statements relating to the future events and future performance. Numerous factors could cause the actual results to differ materially from those in the forward looking statements. Now I would like to hand over the call to Ms. Preeta Patel, Ms. Preeta, for her opening comments. Thank you, and over to you, Thank you, Krishna, for the introduction. Good evening, everyone, and thank you for joining us today to discuss our financial and operational performance for the second quarter and half year ending 09/30/2026. We concluded the Board meeting earlier today. I am pleased to share that PSP Projects delivered its highest ever quarterly and half yearly revenue. Revenue from operations stood at INR $11.13 crores in Q2 FY 'twenty seven, that is driving growth of 58% year on year, while H1 FY 'twenty seven revenue increased by 61% year on year to 1,957 crores. This performance was supported by healthy execution across our project portfolio and improved availability of labor and other execution resources.

2:00 During quarter two FY 'twenty seven, EBITDA increased by 38% year on year to 69 crore, while profit after tax increased by 87% to INR 30 crores. For H1 FY 'twenty seven, EBITDA grew by 66% year on year to INR 124 crores and profit after tax increased by 193 percent to INR 48 crores. H one FY 'twenty two EBITDA margin stood at 6.30% compared with 6.12% in h one FY 'twenty six. As of 09/30/2026, outstanding order book stood at 12,872 per room, 30% year on year growth providing a healthy multiyear revenue visibility.

2:46 Of the total order group within group project accounts for approximately 72%, that is 9,229 crore, while external projects contribute the remaining 28%. During h one FY twenty seven, we secured order inflow of approximately 1,305 crores, including $6.75 crores during the second quarter. The quarter two additional comprised comprise projects across health care, airport infrastructure, office building, refurbishment, and in a foundation from Adani Group. During the quarter, we completed an important landmark project, project 90, which demonstrates the speed and scalability of our capability. The project comprises three business level account flow and staking staking up of load, and the part... Our business sector was completed in only one twenty one days, making it one of the fastest PSPPROJECT highlight project executed in.

3:47 As part of project 90, we also completed our new PSP corporate house located adjacent to project 90 in two forty days, including MEP and MEP and interior without work. This project demonstrate how PSPPROJECT technology can enable faster execution, consistent quality, improved precision, and more efficient deployment of labor and resources. Given the demand visible across building and infrastructure project, we are progressing with capacity enhancement at our PSPPROJECT facility. I am also pleased to say that we will commence operations of our new corporate house on 11/04/2026. During the quarter, overall, the company successfully completed 17 projects, of which major completed projects in addition to the project 90 are fixed up complete cable dock project and supply of noise barrier for national high speed rate operation limited for L and T in Gujarat.

4:46 Service order of SITC of civil structure for interior and MEP work for Nega developer private limited. Out of the current order book, please make note the key projects and their outstanding contract value. See, Amberji Mata Temple, 9931. Have started work on the... All front that is general development work that is hurting and feeling. And all building work, we are on different levels that is on foundation or... And on level. For SNC high rise building, 613 per room. As you all know, RCC work is already completed. And if you work is completed in 15 floors, interior works is going on for... From 1st To 5th Floor, and hotel work is going on from 5th To 10th Floor.

5:39 Construction of building at 5th City, Gujarat, 251. Currently, we are doing artistic work from 6th Floor. Human biology science gallery at Science City, 238 Crore. Major work of RCC and fabrication is already done, and soon we will be starting MEP work in that project. Building biggest residential project in Gibbs City, 187 per hour. We have completed all ICC work up to Ground Floor for that particular project and are executing at third 3rd Level, 1st Level, and second level for different building that is block a, b, c, d.

6:26 The development of the region, 1171 Development is $25,155. Update on our project. Out of three building, we have successfully hand over two building that is lab and lab building. Our hospital will... In our hospital building, we are currently doing flooring work, and if you work, interior work, and for that work. The current build pipeline is 7,800 plus per hour with 52% group projects and 48% external projects. To conclude, based on the execution achieved during h one FY twenty seven, the strength of our order book and the progress of all key projects, we remain on track to achieve our stated guidance of approximately 25% year on year revenue growth in FY 'twenty five.

7:19 Our priorities for the second half will remain disciplined project execution, timely delivery, working capital management, and the selective. With this, I I will now hand over the call to to share the financial team further details. Thank you, PSP. Good afternoon, everyone. We'll brief about the consolidated financial performance for the quarter ended 09/30/2026. Quarter two FY 'twenty seven versus quarter two FY 'twenty six. Revenue from operations for the quarter is INR $11.13 versus INR $70.03, which has increased by 58% on Y o Y basis.

8:13 EBITDA for the quarter is at INR 69 versus INR 50 increased by 38% on Y o Y basis. EBITDA margin is at 6.21%, which was 7.10% in similar earlier quarter. Net profit for the quarter is INR 30 versus 16 CR, which is increased by 87% on year on year basis. Net profit margin is 2.69% versus 2.28%. During the quarter, under review, employee cost has increased from 33 to 50 on a viral basis, mainly on account of annual increments and increasing number of employees, Increasing appreciation from 20 CR to 26 CR on year on year basis is mainly attributable to addition in asset block during h one FY twenty seven.

9:16 During quarter two FY twenty seven, company has incurred CapEx of 62 crores. And in h one, half year ended September 30, CapEx stands at 91. So the gross block as on September 30 is 851 PR, and net block is 451 PR. Would like to mention some of the balance sheet numbers, which are important, as on 09/30/2026. Long term borrowing stands at 30 c r, which includes short term maturity of 14 c r. Short term borrowing is 238 c r, excluding 14 CR of short term maturities.

10:03 Net unbilled revenue is 632 CR. Trade receivable is $80.09 CR. Trade payables are 499 crores. Retention money, 229 current and non current both. Mobilization advance stands at 943 CR. Inventories of 416 CR comprises of $2.47 CR of construction materials, 140 CR of work in progress and 29 crores of finished goods. During the quarter, company has reduced its sanctioned credit limits by 110 CR as it was no longer required. Out of revised sanctioned credit facilities of 1,387 crores, Company utilized non fund based facilities of 753 crores, and fund based utilization is 142 crores.

11:02 Pre limit available for utilization is 492 crores. As on 09/30/2026, the company has total fixed deposit of 237 crores, out of which, lien free deposits are of 44 crores and was 193 CR are under and for credit facility and given a security deposit to clients. Work on hand as on September 30 is 12,000 crores 872 c r. Detailed bifurcation is provided in the uploaded presentation. That concludes the update on the financials, and we are now open for the question and answer session. Thank you.

11:51 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, press star and 1 on the 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'll wait for a moment for the questions to be assembled. The first question is from the line of from Central Program. Please go ahead. Yeah. Congrats on very strong q two numbers. Sir, what is the outlook for order inflow? We have five months left in this financial year.

12:44 Change of the one... Minimum 4,000 to 5,000 across. Okay. So based on current bid pipeline, which is about 7,000 plus, we will be winning for for 3,000 more. $3.03 or 4,000. Okay. And, sir, any any outlook on margin? I mean, we can expect improvement in EBITDA margin in h two, or it will be in a range of? It will be in the same range, or can there be an improvement of this management person. Okay. So six and a half percent, six point six point three percent we have done in that one. So there could be improvement of 30, 40%?

13:33 30, 40 Yeah. So we can say it can work. Okay. And next year, it should be 7%, sir, FY '28? Yeah. Okay. Okay, sir. And we have said that we will be doing 25% CAGR for next three years, right, in terms of top line? Yeah. Yeah. Okay, sir. Thank you. Thank you. The next question is from the line of from Bank Bank Please go ahead. Yeah. Thank you. Just a couple of things. I just want to understand what is the geographical mix of the current... You know, what are they executing or as well as the geographical mix of the order book?

14:21 See, actually, majority of projects are within Gujarat only, almost 70%. Around 25% is within Maharashtra. And just we have a a small project fee on our many states, but those are not significant. Okay. Okay. And and we are getting in general... Filing increase in inflation... Sorry, our inflation for workforce as well as material. So how are you managing this inflation in terms of variabilizing some of your project cost or on your proposals? Can you just help me understand how you are managing this cost inflation, if at all, it is there in both workforce, skilled, semi skilled, unskilled, etcetera, as well as material cost?

15:14 If you are available, can cover about the. Sorry. I can't hear you clearly, sir. Can you... Sorry. I can't hear you clearly, sir. Hello? Hello? Yeah. Are you able to hear me? Yes, sir. Now I'm able to hear you. Okay. So when I say is we can maintain that our order book is almost ninety five percent and thirty five percent is not. If you understand that we have a team with the group as cost plus percentage only, So all the material cost difference has to be reimbursed by the group. So we don't take share any risk as risk as a new project is concerned. 25 project which we are doing today is almost under the completion, And the new projects which we have initiated is in the in the 1,000 crores. The in also cement still is not covered in either directly in the past, but it is covered through our day.

16:10 So we shall not have much impact as far as escalation is concerned. Yes. We have little bit because of this war and some of the market is going up. So that was a little bit impact on SNC and the RV, but I don't see any much impact of still, like, doing the inputs to concern the PSP as a whole. Okay. Okay. Sir, since you're working on a cost plus model in terms of the capital projects, what is the gross margin target you have? And what is the working capital? What kind of working capital is there for this kind of project? Yes. So this this we have been seeing since the JVM are with the.

16:56 They are paying us, of course, 10% of immigration at us. And these have been cleared. 75% in that year is in seven to ten days, the rest of the 35% GST and that's not within the next month come. So we don't share any problem in terms of managing what we have related for the group results. And for non Azanic group, sorry, and your second question was related to margin. That also, today, whatever completion based on the past experience of our different projects and what cost model we have and with the group, it will be in the range of 7%. Okay. Sir, as you have given a guidance of three years particular growth rate. Now this is... I mean, you already have a strong order book in your time. So this order book, what kind of... By when...

17:50 I mean, there's around 13,000 crores order book that you have. I I assume this is excluding GST. Right? Yeah. Okay. And this would take how how many years to complete this 13,000 order book? So maximum project time line for any of the projects which is included in this order, which is not going beyond thirty six months. So we can consider that this is to be done in two and a half percent of just the three. Okay. So... And your guidance which you have given, that includes what what kind of project pipeline you think actually would would need to be so that's... Which which should be there for you to have a stronger growth in addition to completing these over the next thirty six months?

18:42 See, there are there as PSP is concerned, and we talk about nonorganism. We have we have been we And secondly, the projects which is related to common health. First standard has just been announced. So we'll be participating in all those departments. So all of this visibility, I don't see any problem. But we still feel that there will be a mix of both the things only from the private sector, government and private sector in the second.

20:10 Okay. So this Ahmedabad Airport, as far as the Mumbai Airport would... Is it is it also part of your of your order book? No. Totally, Ahmedabad Airport is not as part of my the. So there's any development from city side that will be. As far as Mumbai is concerned, but then we are in the... In 2% of Mumbai, there is the airport in the office. So that that can be through developments coming in that area of that airport can be a part of this. We have already seen the.

21:02 Okay. Sir, I didn't catch the last part. The Mumbai one is is is something which we will be doing, the current expansion, P1? No. Then we have a remote for entry, but I think Okay. Thank you, sir. Thank you. The next question is from the line of Vishal from PL Capital. Please go ahead. Yes, sir. Thanks for the opportunity. Sir, am I audible?

21:48 Yeah. Okay. Okay. Thank you, sir. Sir, I think you have... Did provide guidance in terms of revenue growth rate next three years. But, sir, particularly, if I could talk about this particular year, we are doing a pretty strong set of execution. First half is almost up 60% on Y o Y basis. So FY 'twenty seven, I mean, like, can we say probably the run rate will be higher than the 25%? Any ballpark trajectory that can you provide, sir? Yeah. We we we we be on a high percentage of year. We will use again of 25% internal. Have a. The one Sir, I'm not On commitment side. To my end.

22:36 Pardon me? I I... Sorry. I couldn't I couldn't hear you, sir, clearly. Sorry. Okay. As I said, that present commitment is 35 to 30% growth here on here from here. But today, as as we are saying, there's there's gonna be a good target in this year, which I was to add, that is an internal target which we have there, which is beyond 35%. But, presently, we'll see this will try to keep the as in the market in 25 to 30%. Okay. Okay. But, sir, what happened is, like, you know, the 30, 35% for this year, probably the second half number could be a little bit on the softer side. So I mean, that's the reason I was asking. If you see our past, it has been always strong. The second half is always stronger than the first half. If is within that one, can consider that part because it is more than the marketing model to deliver and that's the basic and for construction.

23:35 So then we will run it for the second part also. But just I'm sharing you that that can be the incremental percentage compared to 30%. But just on the commitment side, I can say if we we should come in on 30%. Okay. Okay. Sure, sir. And maybe one last question from you, sir. I think we have provided a lot of details regarding precast and the number of days when we are doing it has gone down. So when when you are doing work under precast for Adani, so or probably non Adani, I mean, does this improve margins for us, or how exactly it benefits? I mean, both the side if you Yes, sir. Yes, sir. Yes, sir. Is the biggest benefit which we have is the structure are getting getting faster.

24:28 So once you consider the the cost of a project, distribution project, cost of a distributed cost of a project, you will see that all this structure is 31. Rest of the thing is 71. And if that is completed half the time, the second line... Second time the the other part of the project goes little bit faster. So the revenue will need little bit faster. So that's the biggest benefit which are getting in advance, not as a part of margin. Even tomorrow, if we go to the market, of course, that will give you better margin because commitment on other timeline to anyone who is referring to leave the project or is self kept in... You said of the project like industry, that will always help them, and that will always use the better by groups.

25:15 Okay. Okay. Okay. Got it, sir. I think that's all from my side, and I'll come back in the queue, sir. Thank you very much. Thank you. The next question is from the line of from Gordon Capital. Please go ahead. Hi, sir. Thank you. Sir, just to get a more clarity. So in... Or to be... To to get a more kind of a precise or closer to the precise number, is it a fair that we can easily reach close to 4,500 kind of a revenue for this year? Yeah. It's an assumption to be fair. It is right. But as I said, that that given this is our internal target to cross your. But I'm just wondering if we should receive the results of 25 to 30% as well as.

26:08 Okay. Okay. Okay. Got it. And and and particularly, sir, in terms of the margins, because that's the one which is still not able to understand, though we are saying that the 7% margin for this year, 6.3% that we have done in the EBITDA margin in the one h f r twenty seven. So just to want to understand, so let's say we reached to a 4,500 odd crore, then also... And and then also from f r twenty onwards, as we are saying, 25% kind of a growth will be will be there. So there also, the the max that would be a kind of a 7% margin that we can we can see. So this is primarily because the Adani, we will be definitely then would be having a kind of a 5.5, 5.7 kind of a margin, and that's why the margin is is is... It looks on on the lower side because the delta on the 1% margin extra or lower has has a significant impact on the APAC.

27:07 So that's what I'm I'm trying to understand. Yes. You are absolutely right. That's been considered six to 66.5%. Then the commitment of 7% on the organic, is getting percent is more than any projects are gearing up and other projects are not getting the margin. But that is more because of the people, most of the projects are now out of structure. All the projects related to these projects are now getting into interior. So the project which is started in last year, almost all the projects are now and there was the completion of the structure or video of the structure. So that that means the initial phase of the project space. But as I said, 30% is RCC and 70% is the project other activities which is still the total cost of the project. So this 70% money is going little bit faster than the structure part. It is always going to give a better benefit in terms of EBITDA, in terms of overhead and the margins in the already you have incurred and that is going to continue for the project, but the reason is why it is because these materials do not require that much involvement of all these things. So I personally feel that R and D is impacting to a specific extent of 1.9%.

28:27 But probably at the end of the project, it will be more than that. So so from next year onwards, FY '28, when when... Let's say maybe we will be doing more than a 5,500 crore kind of a revenue. So that is it fair that we we should be doing at least 7% or or or there is a possibility to reach even seven and a half? As I previously said also, the calculations which we have made with the group is lending with seven. And then of the project, each and every project has to be reconciled also because each and every projects are different different type of growth and different types of challenges also. These 7% margins and the overall has been calculated based on PSP's past projects, such as large projects where we have completed three years of over years of our commitment, three years of our safety department, all these things. These are the basis of the data which we have taken from the past projects.

29:28 So probably at the end of the project, it should be more than seven because I personally see that we also we were working at first plus 95 to first plus 92 to first plus 75, and we were able to make 7.5 or 8.5 to 9% monthly. So I don't see any problem that we can go below seven. It has to go below 7.5 or 8%. But that's the time which I cannot commit on today because there's another projects, different different types of projects and different different challenges also. It's not only about learning and learning. But being learning also. So this space and the projects further recovered for MET as an interior that gives the better margins than the project is getting. You are... So 30% even is getting done with 30% even is getting one year, and if 20% even is the next seven months, eight months. That's what I'm trying to convince you.

30:23 Okay. And and in terms of the order inflow for registers of 13... Yeah. Last one. Last one. Just, Yeah. 1,300 crore that we have received. So for full year, how much... Last time you said $56,000 crore. So that Yeah. I'll I'll I'll... I'm still expecting it on the year. Overall year time, we will be in the $55,000 plus. Okay. Okay. Thank you. Thank you, sir, and all the best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of from JF Financial. Please go ahead. Yeah. So firstly, the diamond board receivables, is there any update? Have you received any money from there? And also, sir, save from UP projects?

31:17 See, first, I talked about. No. Yes. There is no coming from from their side. They... Again, we are hoping that the base that make a base comes to zero time on the project. And then and then we be in a good position to commit to me. Secondly, on the UP side, yes, we have almost all the things. Whatever the money was like, we just we just need about. So that's the money you've been. The project I completed, the fund goes back to the medical division. So each department is now waiting and the department that last 5% which there is a. So probably maybe by next quarter, we should be through that all the money. The UP amount was roughly 40 per hour as of March. Stocks, and how much have you received?

32:12 Around 23. 20 to 25 yearly. The remainder should come in by the year ends, by March? No. No. We we will be by September. Okay. As the amount is 90 crore, it stays as it is? Yeah. Okay. And lastly, one bit on margin. So last quarter, we were guiding for something around seven and a half to 8%. Today also, you mentioned that we target that internally, but we are guiding on a lower end. That's correct? No. That... I think the last question was asked by this. So I wanna know. I'm not seeing a big big in this. Should improve from here, and it should be within the range of 7.5% to 8% in future because presently we are working on most of the projects that are working on structure and we are over a certain cost is much higher than we are executing 30% So that will automatically give an improvement to the margin once we start on those activities.

33:31 And what is our CapEx number guidance for FY twenty seven and FY twenty eight? Okay. For the half year, we have incurred around 90 CFO. For the... Around 100 CFO. And next year? That will be a thing I have. Always say that should be in the range of three to 4% of our revenue because if you are we are expanding the 25 to 30. Each year, we require minimum three to 4% of CapEx plus the CapEx which you already bought to be utilized for the for the new projects. So, additionally, it should be in the range of 84% every year every year. If you want to make them 31% grade. Okay. Thank you, sir. Those are my questions.

34:19 Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all participants in the conference, please limit the questions to all participants. The next question is from the line of from Sumai Investments. Please go ahead. Hi, sir. Thank you for the opportunity. My question is with with respect to Precast. So what is our revenue potential here? And currently, we are operating at what capacity utilization level? See, even if we utilize the maximum capability, we will 30,000,000 as part of the total scope of project, and we are doing 100%. So for the past, the busy part and the good part is we are able to execute the structure much faster than other companies or other the construction that this project. So it is more not more about the revenue.

35:18 For revenue, again, you have to add on some of the CapEx. But even if I am able to run the proper plan in a faster way, you need to be able to complete your RCP part of that project faster than the others so that your total project timing does not go beyond the limit. This way, it doesn't usually market is facing related to labor and all this. But what is the maximum in terms of revenue that we can do in a particular year? That is 250 crore. Okay. And currently, are operating at full potential, sir? Yeah. Presently, we are operating at full potential. So are we planning to do CapEx here? Today, we are not in that plan, but we are small small CapEx are always going because small things we can do with project is really quite.

36:12 That will not be substantially. Because the sheets and whatever required for the project of our funding, this project to double, we already have been successful in sheets and the infrastructure already. So that will be the requirement of small machine only, which can give us better exposit, which we refer to as well. Okay. Thank you so much. Thank you. The next question is from the line of Lokeesh Kashgar from PSPPROJECT's Limited Institutional Equities. Please go ahead. Thanks for the opportunity. Congratulations on the good quarter of numbers. Sir, a couple of questions from my side.

36:57 Firstly, on the margins, is there any component of expected credit loss during this quarter with the impact of the margin performance? Sorry? Is there a component of expected credit loss, NPL losses on the legacy projects for this quarter? Yes. Yes. We are providing based on the metrics at this and whatever we we see that, shown yes, that advance or the receivables are now. So what is Yeah. Yeah. It is around eight years. Eight years. Okay. And secondly, on the revenue, what has been the contribution from the group?

37:59 Sure. Sure. And last one, labor front, sir. Last quarter, I believe the total number of labor was loaded to around 11,000 numbers. I believe it has been... It has improved lately. So what has been the number and what is the situation currently? And is it sufficient for our Yeah. Presently, it is ranging between 23 to 45,000. Plus or minus, depending on the activity and details on the season. But now we are operating in about 43 to 25,000. And is it sufficient or we we had more labor? As of now, Okay.

39:05 Okay. And sir lastly on the unbilled revenue number has increased you know from last quarter. Is it because that we have executed most of the projects or ramped up the projects during the later half of the quarter Or why is there significant increase in the unbilled revenue now? Yes. Yes. Most of the major government projects, since they are not the time to build on time, so we have to And also some of the amount which is still... I mean, the finalization of rates and then everything is pending. So that we have to continue in the.

39:53 So do you think that that would be normalizing going ahead? Sorry. Your voice is not clear. So do you think that the... On the driven portion will be normalized going ahead? I think it's for Yes. Yes. It will be. It be. Yes. But, again, it will depend on what type of project you are executing. Because when the certification of the deals are not being done by the competing authority, they will not... The deal and they are not able to deliver the PSPP. So every quarter, there will be an issue related to last month. Okay.

40:54 Good. So that's it from my side. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Balasubramaniam from Mariant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunities. Sir, Adani Group is creating out five gigawatt of AI infrastructure. I think one gigawatt is falling into Maharashtra, especially in the V Mumbai side. It's I think they had a MOU of nearly INR 50,000 crores with Maharashtra government. I just want to understand this Navi Mumbai is falling into our key focus areas like Gujarat and Mumbai Pakistan side.

41:44 Whether we have a capability for this data center build out and is there any scope to get some work in those areas? See, that's the idea. It is the scope prospectus of the project. I won't... The reason of the project and understanding of PSP. We are distributing the market. So we are based in Mumbai. So it's not about anything related to data center or reality or reports. It's all about how we expand and how we get a. And this is how they are moving. Present order group also we are operating at the last projects of of reality and. There is one project of airport also which we are doing. There is one project which we are in the discussion of medical or medical or medical medical hospital in India. So what those capabilities PSP is having and the bandwidth on which we can expand our test to next level, there will there will be always an opportunity for a new year, always the right of the business as well as for that. If I'm not capable, I'm finding the project, I already started. There is no point for me to start in the third project. We are not able to get up with the existing.

43:01 Existing projects. So a little bit more about how we expand and how we get the. Okay, sir. Okay. Because why I'm I'm asking this question because these projects will, like, up to 2035. I think we have nearly eight to ten years time frame. I'm just That's what I'm that's what I'm saying. This has nothing like... It's a simple building with a low... High loading criteria. It's as good as building of a commercial building only. So it is not about capabilities. It is not about the technology. There is something different in data center, which we are not able to achieve. It is only about our capability, and we are talking about 2035. This is our second year journey, and we are now getting up through that tail that we have do that. Let us hope that we are able to increase our capital within the next five years.

43:56 Got it, sir. Thank you. The next question is from the line of Raj Shah from CB Asset Manager. Congratulations for Bhutra's number. My question is we had a provision for the absolute advance to the tune of INR 8.1 crores for this quarter. Are we expecting any provisions going forward? Sorry. You gave a number of which is it? Provision. The provision for doubtful advance was 8.1 as stated in the cash flow statement for h one. My reckoning is that it is specifically for quarter two. Are you expecting any provisions going forward in quarter three and quarter four?

44:49 And, also, if you could highlight about your doubtful advance to the tune of 8.1 crore, it was regarding which project? See, this... We again have to review our advance fees and the balances in the receivables. Then only we can decide In for our business, it will be again even down to the. Because last year also, one of the CapEx advance we have made it... It was around two years. And this is eight which we expect that we might not be receiving the invoice or So we have to review the numbers, yeah, quarter on quarter maybe. Okay. Just think of that, the EBITDA margin for this quarter is roughly about 6.7%, and it's been few quarters that every quarter, they start the other write off of the provision which is happening.

45:45 See, normally, it is ECL. I I brief you. It's a expected credit loss, which is normally calculated based on the metrics that is based on the aging of the. So every year, you will see that there will be around three to four CR of additional. Okay. You are adjusting for that. Is it fair to assume that we'll be closer to 7% in H2 of the EBITDA margin? Yes. We can consider, right. Okay. Okay. That's it from my side. Thanks and all the best. Thank you. You. As there are no further questions from the participants, I now have the conference over to the management for closing comments.

46:40 Thank you all for joining us today and for the active participation in the earnings conference call. We sincerely appreciate the continued trust, confidence and support of our shareholders, investors, analysts and other stakeholders. We hope we have been able to address these key questions and provide a clean perspective on PSP's performance, growth plans, and outlook for FY 2020. Should you have any further queries, please feel free to reach out to our investor relations adviser, Eibai, who will be happy to coordinate with us and assist you offline. Wishing you and your beloved ones a very happy Diwali. Moderator, you can now close the call. Thank you all. Thank you. Thank you. On behalf of PSP Projects, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

47:30 Yes. Thank you.