Vikran Engineering (NSE:VIKRAN) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Vikran Engineering Limited Q1 FY 'twenty ten Earnings Conference Call. We are pleased to have with us the senior management team of Vikran Engineering Limited. Before we begin, please note that all participant lines will be in listen only mode during the management presentation. There will be an opportunity to ask questions during the Q and A session. Please note, 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 are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

0:47 I would now like to hand the call to Mr. Rakesh Madhgadkar, Chairman and Managing Director of Vikran Engineering Limited for his opening remarks. Over to you, sir. Good morning, ladies and gentlemen. On behalf of Vikran Engineering Limited, I extend a warm welcome to all my participants joining our Q1 FY 'twenty seven earnings conference call. I hope you had an opportunity to review our financial results, investor presentation and earnings release for the quarter ended 06/30/2026. I'm joined today by Mr. Napol Makhirkar, our Full Time Director Mr. Ashish Bhaiety, our CFO along with our Investor Relations Advisers from Act Factors PR. Let me begin with a brief overview of the quarter.

1:38 Q1 FY twenty twenty seven performance. We have commenced FY twenty twenty seven on a positive note, delivering approximately 28% Y o Y revenue growth, while EBITDA grown up around 24% Y o Y a stand alone basis and the PAT gone up to 212% and that remaining very impressive. The quarter reflects continual execution momentum across our businesses, while we remain focused on maintaining a healthy balance between growth and profitability. A key strategic priority for us continue to be strengthening our presence in renewable energy, mainly into the solar EPC.

2:24 Following the acquisition of NOPL Solar Project Private Limited, we have realigned the execution framework for our nine sixty nine megawatt AC solar project in Maharashtra with Vikran undertaking the EPC execution through a direct control from NOPL valued at approximately INR3518 crore including GST. This gives us a greater alignment between the project ownership and EPC execution and provides a significant opportunity to leverage our existing engineering and project management capability at scale. Our immediate focus is on ensuring disciplined execution and timely commissioning of the portfolio.

3:09 Strengthening our Power T and D business, while solar EPC has become a significant growth driver, our Power T and D business continue to remain a core strength. During the period, we have made meaningful progress on the NOPL solar project, while also adding fresh opportunity from leading customers such as MSC Diesel and PowerGate. At the same time, the successful commissioning of Neo Namsi transmission line. This is a very prestigious Andhra Pradesh Andhra Pradesh further demonstrate our execution capability, particularly in the technical challenging project. This project, which we have commissioned is very, very important in the national interest and it was highly recognized by our clients, Ministry of Power and Power Grid. And with this line, in last six months, we have commissioned two very toughest terrain line of transmission in Arunachal Pradesh in last six months.

4:11 This is the achievement gives a clear cut strength of execution of Vikran Engineering Limited. Overall, this development reinforce our ability to grow across multiple business verticals while maintaining execution and commercial discipline. We remain focused on converting our strong order book into revenue, strengthening our renewable energy platform and continuing to build our core power T and D capability. Nakul, our whole time Director, will take you through the specific order wins, project execution updates and current order book in greater detail. Going forward, we see opportunity across both our established and emerging businesses. Power P and D will continue to benefit from increasing power demand, renewable energy integration and investment in transmission grid infrastructure.

5:04 While renewable energy, our focus will remain on executing the existing solar EPC portfolio, including NOPL, while selectively evaluating opportunity in adjacent areas such as battery energy storage system and data center infrastructure. Our approach to growth will remain disciplined. We'll continue to focus on execution ready opportunity, prudent bidding, working capital discipline and sustainable project level returns. With this, I would like to hand over to Mr. Nakul Markhedgar, our Hold Time Director, to take you through the operational performance, order book and execution progress during the quarter. Thank you. Thank you so much, sir. Good morning, everyone.

5:50 I would like to take you through our operational performance during Q1 FY 'twenty seven with a focus on key developments during this quarter, execution progress and our current order book. We have entered FY 'twenty seven with a strong and increasingly diversified execution pipeline. The most significant change to our order book has been scale up of our solar EPC division, which is now emerged as our largest largest piece of pie in our order book, while T and D continues to remain our strong core business. During the quarter, we also took a few important steps to strengthen the quality of our order books and aligns with that aligns with our execution readiness.

6:43 The key development was restructuring of the nine sixty nine megawatt solar EPC project in Maharashtra following the acquisition of NOPL Solar Projects Private Limited. Vikran received a direct order from NOPL valued at approximately INR 3,118 crores, including GST, while replacing the earlier engagement. This realignment was driven by change in ownership and project execution structure following the acquisition of NOPL and was not related to any performance issue or disputes. The project has now moved into execution stage. Our teams are progressing across engineering procurement, vendor mobilization and on ground execution, which stipulated execution period of twelve months. Our focus is on maintaining the planned execution schedule while ensuring appropriate quality, cost and project control.

7:40 As of now, we have already commissioned nine sites amounting to around 45 megawatt and are ready to commission another 15 megawatt in the coming few days. We are also in advanced stages for around two forty megawatt. This marks an important milestone for Vikran in building the capability to execute large scale solar EPC projects. When we come to project Power T and D, Power T and D continues to remain strong for business for Vikran and has seen healthy order momentum since the beginning of FY twenty seven. In April, we secured two large orders aggregating to around INR $5.30 crore from MSC DCL for distribution infrastructure and system strengthening work across Nashik and Kolhapur zones in Maharashtra.

8:37 These projects are being executed under ADB funded power distribution enhancement programs and further strengthen our progress presence in large scale power distribution infrastructures with strong funding visibility. We subsequently secured order of around 120 crores from Pavel Corporation of India for a 400 kV GIS substation extension package covering Magarwada, Varotra and Rajgad substations. This order further strengthens our presence in high voltage GIS substation segment and reinforces our relation strong relationship with Power Group Corporation of India. On the execution side, like what, CMD sir mentioned, we have successfully commissioned 132 kV Neo Nansai transmission line in Arunachal Pradesh, which was the second line that we have commissioned in the last six months. The project covers around 40.6 kilometers of transmission line and 138 towers.

9:43 This this project was especially challenging because most of this area is covered with high... Highly dense forest area with a lot of hilly terrain. Together, these developments demonstrate the continued strength of our PowerTnD platform across distribution, substation and transmission line segments, with a healthy mix of new order wins and successful project execution. These developments have translated into a strong and diversified order book. As on date, our order book stands at approximately 6,496 crores. The current mix is led by solar EPC at 62%, followed by power T and D with 28%, water infrastructure still stands at around 10%.

10:35 The order book mix clearly reflects the scale up of solar EPC, while contribution of Priority and D Water continues to provide diversification and broader execution. Looking ahead, our focus is simply on adding order book size. Simply our focus is not just simply adding on order book size, but also converting the existing order book efficiently into revenues and cash flow. Our business development pipeline remains active across solar solar EPC, power T and D, water infrastructure and any other emerging infrastructure opportunity that meets our criteria. We will continue to evaluate new projects selectively with emphasis on project readiness, execution time lines, working capital requirement and commercial liability.

11:28 For FY 2027, our key operational priorities are, therefore, timely execution of existing order books, of NOPL solar EPC projects, strengthening our solar EPC capabilities to maintain disciplined order intake. With that, I would request Mr. Ashish Vaipi to take you through our financial performance of Q1. Thank you. Thank you, Nikolti. And once again, good morning, everyone. I'll briefly take you through the financial performance for Q1 FY 'twenty seven. As you all know that EPC business is a seasonal business where generally H1 remains slightly low because of the budgetary constraint at our client.

12:16 However, we have posted a good growth on a stand alone basis for the quarter as well, and we are on track to achieve our budgeted revenue as well as execution targets. For Q1 FY twenty twenty seven, we have started with a healthy financial performance. On a stand alone basis, our income from operations stood at crore for this quarter, growing by approximately 28.2% as compared to last quarter of FY the first quarter of FY 'twenty six. We have reported an EBITDA of about INR 28 crore with a growth of 23.7 year on year, translating into an EBITDA margin of 13.7%.

13:04 Profit after tax for the quarter stood at 17.5 crore, a growth of substantial 209.9% year on year with a PAT margin of about 8.6 compared to 3.5% in corresponding quarter last year, representing a good improvement of more than 500 basis points. On a consolidated basis, income from operation stood at 141.6 crore and consolidated EBITDA at around INR 11.3 crore. EBITDA margin is about 8%. Consolidated profit stood at INR 4 crore, translating into a PAT margin of about 2.8%. This NOPL project, as we all know that we have already executing this project. But now in quarter one, we have taken over 100% equity and that is we are consolidating this.

13:58 We as an EPC company, we are maintaining our margins in EPC business. So that's why if we are considering the stand alone financials, which includes the EPC of NOPL, we have overall delivered a strong quarter supported by healthy revenue growth and a resilient operating performance alongside an increasing contribution from solar EPC. Going forward, we remain focused on scaling the business efficiently while it's strengthening margins and execution. As we progress through FY 2027, our priorities remain centered on sustainable growth, efficient working capital management and strong cash flow generation, enabling us to create long term value for our stakeholders.

14:44 As in solar EPC execution, once this scales up, including the NOPL portfolio, we will continue to closely monitor project level portfolio, receivables and cash flow. We believe that with our taking over this NOPL portfolio of nine sixty nine megawatt and some other project, almost one gigawatt of project we are executing as a developer. This will help in reducing our dependence on government receivables. And that's where this will help us in improving our cash flow as a EPC business. Our objective is to support the company's growth while maintaining prudent financial management. We believe Vikran has entered FY 2027 with a strong order pipeline and expanding renewable energy platform and an established power T and D execution base.

15:35 Thank you very much. And I believe we are now we'll be happy to take any questions you have. Thank you, sir. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and 1 on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answer while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue is assembled. The first question is from the line of Ankit Madhwani from Step Trade Capital. Please go ahead.

16:47 Yes. Ankit, please go ahead. Very good morning. Yes. So there are three questions from my side. Firstly, could you just highlight the numbers, the revenue recognized from your NOPL orders in the statements, I mean, from this INR204 crore? So it is around INR66 crore. INR66 crore. INR62 crore. Crore. INR 62 from NRPM. Is there any reason, see, even consider the effect of NRPM orders, then to we can only see 28% growth around on a standard basis. So despite having this large amount of order books, you are unable to integrate those orders.

17:39 So what are the reasons behind it? So as you know, this is a seasonal business and especially on the Q1 side, mostly our as we discussed that there are some budgetary constraint at our client level, and that's where you will see generally in the industry, S1 will always remain slightly lower. So though we have an order book of 6,000 crore plus, and we are targeting to execute around INR 2,200 crores to INR 2,500 crores of orders in current financial year. So in the same line, we are going. And in the previous quarters also, in similar line, H2 will be quite heavy in terms of execution and pushing the growth.

18:32 Ankit ji, were we in a position to answer your question? Or do you need any further clarifications? Yes, that's it. And secondly, the INR 29 crores, the disputed amount, it is currently being reviewed by the court. So you have shown that as a mean, trade receivable, even though the customer has already, I mean, moved the project. So what's the status currently? So this INR 29 crore is a clear receivable, which is certified by the client. That is only we have kept in the books. Apart from that, our claim to the client is much higher.

19:20 And we have a very strong case, and that's where you will see that... I mean, we are expecting a positive result from the from the case. But, yes, it may take some time. However, once this case is resolved, definitely, we are hopeful to have some positive impact of the result, and we have some extraordinary profit on that particular year. Okay. And could you just give the revenue bifurcation for this quarter? I mean, what was the amount, I mean, the revenue recognized from solar EPC and power TMB and margin as well.

20:13 So as we have discussed that around INR 62 crore we have received from NOPL. Apart from that, there was about INR 70 crore of total revenue we have received from the solar project, which includes other solar project, which we are working for. And apart from that, the balance for the balance amount, you can say mostly it was from TSV and PD projects. Water was about INR 12 crore. And margins overall are in the similar range, but it may happen that because of some provisioning or some fixed cost, which are apportioned on particular project, it is slightly different. But otherwise, our overall margins remain same for the all the businesses.

21:05 Margins have seen a significant dip in this quarter. So I just wanted to understand the reason behind it. Yes. So for particular I mean, this quarter, if you see on a consolidated basis, yes, the cost of overall project is higher. Also, there are about I mean, in water division, though we have started getting receivables recovery from the projects, but still it is slow and that's where we are continuing to having some provision of about 6.5 crore. And because of that, you will find that the overall margins are slightly low in this quarter. But once we get those amounts, these provisions will be reversed.

21:53 So apart from the 6 crores, 6.5 crores provision, there's also the fact that any overage that we're incurring on the NOPL project is also not getting sorry, the cost is again getting booked without the revenue. So because of which you'll see in consolidated results, you'll find the EBITDA to be a bit lower. But on the stand alone basis, you'll find the EBITDA margins are normal. See, so what would be the percentage in terms of percentage, mean, the cost incurred from your NPL acquisition? So if you see around there's a difference of so in terms of NPL acquisition, the company has just paid about INR 10 crores for the equity yes. That is So for the overall cost, we have to go into details for each and everything. So that's where in total, we are in line with the EPC business as we are maintaining around 14% to 17% of EBITDA margin, which is consistent from last four years.

23:05 And the same will be carried forward, I mean, through the definitely. And on the blended level, mean, all the segments? Yes, that's what I'm saying. On blended level, it will be many percent in that range. Yes. Thank you. Thank you. The next question is from the line of Siddharth Lodhia from Sanshi Fund. Please go ahead. Yes. Hello, sir. Just one quick question. Wanted to understand the bridge between stand alone revenue and consolidated. There's a INR 60 crore gap there. So is this the INR 60 crore attributed to NOP?

23:57 Yes. That's right. But since NOPL, have we kept it as subsidiary or we kept it as subsidiary. Right? So it should reflect in console and not in stand alone. So why is that? No. It seems in console level, your subsidiary becomes a part of the whole company as one entity, and that's where whatever work we are doing for the subsidiary will not be reflected as your revenue, it will be coming as your CapEx portion in your balance sheet. Okay, understood. So it is better for us to look at standards on revenue in this case and that will continue throughout the next quarter. Right? So so one point, yes, as you rightly said, one point we need to understand that this EPC business was already going on from last quarters.

24:52 It's just that in this quarter, this has become a 100% subsidiary, and that's why this revenue is being removed. Otherwise, this is continuing as a EPC business. Understood. So now it's better to look at the stand alone numbers, correct? Otherwise, there will be a dip every time we look at these numbers. So, Subhashi, once the construction phase is over from next year onwards or from maybe in the next couple of quarters, once you see substantial revenue coming from power generated in the subsidiary, only then will it makes sense for us to look at the consolidated balance sheet or statement rather than looking at stand alone. Sure, sure. Understood. Thank you. Thank you. The next question is from the line of Mahesh Kaushik, an individual investor. Please go ahead.

25:47 Hello. Am I audible? Yes, sir. Yes, yes, please. Yes. Okay. So this is regarding... At a high level, I just want to understand that much of your receivables are stuck at the projects Correct. Of the state government. And you all have, I think, given an approximate time line of completely receiving and absorbing this by FY 'twenty eight. Am I right? Yes. So this overall scheme is extended till FY '28, correct. But will that not result in further requirement for working capital? Do you have to raise money for that? So if you understand that in Jaltiel Mission project, yes, there are slight delays and the overall payments are slightly lower.

26:42 So what company has done as a strategy is we have filled our working capital investment into those projects at a particular level. So whatever amount we are getting from these clients, we are only investing that much and that's how we are trying to close and complete the projects village by village. Okay. So it won't... So it won't impact our our looking at the requirement for the for the future because we have kept it at a at a particular level, which is currently, I mean, the overall data side about $1.20 crore of debtors is due to the generation projects. Okay. And regarding the NOPM project, it's a fantastic project, a very massive project, The part... A lot depends on timely complete...

27:33 Completion. So from that perspective, are you all confident that you will meet all the timelines and be able to get all the revenue on time? Yes. Yes. 100% sure. So we are pretty confident because it is for... So the way we look at it is it is not a single massive project of nine sixty nine megawatt. We consider it that it is $20.30 crore project, know, 150 projects of of of each project being value of around $20.30 crores. So with this, what happens is it it purely becomes a function of money and not a function of anything else. So if if money is ready to be infused, you can start all the projects at the same time, finish off the entire nine sixty nine megawatt in four months, five months time.

28:24 Oh, so that is ahead of schedule? We can... As per our plan, we are we are on track. We are not ahead. We are not behind. We are on track. Okay. Being a... Is that a state government project? So will that also create problems like you face in when it comes to this? No. No. No. No. So so the the way this project works is that we are we are putting up the CapEx so that later on power generated can be sold to the state discount. As things stand, as things have stood for the last three years, four years, no discount... Maharaj just... Maharaj just has not delayed a single payment when it comes to payment payment towards power sale of power.

29:12 And and we... So that is that is what brings confidence to us as as investors in this project and also the lenders who are who are bringing in the majority portion. So they've also studied, they've also understood the... Yeah. So they've already understood the capability and the credibility of the state government, this one. And that is the reason why they are bullish on on funding the project. And just to give you further information, we've already started receiving revenues or receiving payments for for what power we've we've been selling for the last couple of months. Okay. Thank you so much. And the last one This is what makes us make it beautiful. I don't have to wait don't have to wait for the entire $9.69 megawatt to get commissioned for me to start generating revenues there.

30:07 So like mentioned earlier, we've already commissioned around 45 megawatt, which is generating revenue and regular cash flows in the subsidiary. Okay. So to give a... Just give me... Sorry. Sorry. Sorry. You can't continue. Yeah. Yeah. Just one line. I just wanted to tell you on the overall receivables. Since we are focusing that most of the receivables getting in this this financial aid itself. So good news is that even the water water, the JLG one mission, we started getting some 23 crore we already got it. Last quarter. In last quarter, this is a very positive.

30:53 Apart from the JLG one mission, our mostly projects are divided in three parts. One is ADB funded state government project, which we are getting from Maharashtra payment is timely payments are there now. The power grid project and NTPC project, what we are executing there also on dot timely payments are now that's always coming. Third, the most important that NOPL Solar Private Limited project, we are... The commissioning, whatever we are commissioning that on the dot due date, we are receiving payment. And we have completed two cycle and both the times we have received the payment on the same date. On the committed date. On the committed date. So this is in a very positive moment and in the recovery of our receivables what we kept the target for that Q1, Q2, Q4.

31:44 And we have we are meeting and we are going exactly as per the schedule. So, Mahesheet, this is what team is trying to emphasize is the point that the reason for pivot was to ensure that our receivables don't get elongated any further. And we've we've now... We've... We're very confident that our planning... Our execution is matching the planning, and our receivables will surely come down significantly. Okay. Oh, that's great. So that means one is the only little bit unpredictable on the timeline front. Then But will be... So even that is also now clear. So just in the last last month, center has released significant funds to 70... Around 17,000 crores to UP government, specifically for journey of admission. And we've also received north of 10 crores in the last thirty days. So that is giving us a lot of confidence on the project. And now we've even started pushing, reinvesting the money that we've collected into the project, and we are hoping that once the rains are done, we'll be in a position to push even our water segment.

32:56 Okay. Great. Just last question regarding this foreign abroad projects which you all are trying to expand to. Is that is that Iran war going to have any effect, meaning in terms of delay or any So there there was... So we had actually planned for a few... We were in a... We were actually negotiating a few projects in The Middle East, which has gotten delayed. But apart from that, we we also have a lot of opportunities in Eastern Africa as well as Western Africa. So so once these opportunities materialize or... Then we'll, of course, take it up. There's no material impact on any of our business operations as of now. And any any price variation that has happened because of of this West Asia conflict is is getting mitigated by a pass through mechanism of price variation claims to our client.

33:55 Okay. Any chances in Europe? Europe, we've honestly not explored. If you have any insights that we can use, we'll we'll be very much coming... Overall commenting on our overseas business strategy. So what we are doing though, we are receiving inquiry, we are putting, we are quoting and we are... But we are going very carefully for accepting accepting the orders and all because since we the domestically, we are performing very well. Our execution is going on track and that very confidently, we are moving with the domestic. So currently, our major focus is on the domestic and and the conversion of our like, exist... Existing project into the collection.

34:44 At the same time, if they are getting good opportunity, which we are continuously exploring with the high profit margins, so so that surely we will be going to the international. So we have team in place. Everything they are all working and including the solar and power t and d, we are quoting. And then there are some things we have quoted that is in pipeline. But that all depends upon what profitability is coming. So to... So this is our overall strategy as far as the over... Overseas projects are concerned. Thank you so much, sir. That's all from my end. Thank you very much. Thank you. The next question is from the line of Meta for an individual investor.

35:41 Sir, I would like to ask, like, can you give an update on the 3,100 crore project financing, including the status of the IRDA approval and alternate UBLA consortium financing. Oh, okay. So you're talking about the debt portion for the project? Yes, sir. Correct. So for that, overall, the project cost is INR 4,000 odd crores for NOPL, and that's where we are discussing with I mean, we are almost in the final stage of both the agencies as you rightly mentioned. And apart from that also, we are discussing with other agencies, and they are quite positive about this project being, I mean, MS EDCL is a is a client. So that's where in the payment terms, in the PPA rate, since it is a non DCR panels.

36:39 So everything is quite positive, and they are keen to fund it. Since there are... I mean, has already given a sanction before. It is quite easier for them because as far as the project is concerned, they've already assessed and sanctioned it. But the final sanction I mean, the final the committee meeting has to happen, and that's where we are expecting the final sanction to us. So we are expecting that in this quarter, I mean, we are expecting the disbursement as well. Okay, sir. And, sir, going forward, will you be, like, looking into such projects like NOPL thing, or this is just one of the kind? No. No. This is this is... We will... We are bullish on going for a developer mode project.

37:27 Our intention is always to find good quality projects. But at the same time, we'll not force ourselves to bid for projects where the equity IRR or the project IRR is not in line. So we we are pretty clear on what we want, and and we will definitely get protection in the future as well. Okay, sir. And, sir, you had also mentioned that you are loading the data center infrastructure opportunity. Yes. Yes. You elaborate, like, exactly what the opportunity you are targeting in that? So... Correct. Thank you so much. So there are a lot of data centers that are getting planned to get established in India. A few of them are in Maharashtra. A lot of them are coming up in Gujarat.

38:15 So we are actively talking to these private developers to take care of their power requirement. We... We've also we've also got inquiries to to develop solar parks for for these data centers. But but as on date, we've not yet got any order as well. We've not any... Got any order. We we quoted for a few, but none of those quotes have been translated or converted into a order for us. And this is what... During my last conversation also, we said we have started working on that, and what team is working. We have got a consultant, Yanbai, with us. And by end of this financial, we are targeting to have at least one order. This is what we are in the same direction we are working. Okay, sir. And so what, like, revenue potential you see over the years in the... Over your? It is it is very difficult to judge this because it is a very volatile is not the right term, but, you know, there are a lot of changes in the market that are happening.

39:24 So depending on how much or what what scope the developer allows to us, the value can change significantly. But no doubt, this has a potential to be a significant portion of our revenues as well as order book going forward. So that is the reason why we are taking interest in it. So very positive note on the data center is since the data center, all the three major elements, like power and the captive renewal and water. All three we have present. So we have a natural expansion in the data center, and that is the reason we are more confident and our... That it has been proven our capability into the data center. That's the reason we are discussing and with a very positive the response from the developers as well.

40:12 Okay, sir. Thank you, sir. All the best. Thank you. The next question is from the line of Sandeep Baji from MB Investment. Sorry, who was that again? Can you repeat the name? Hello? Yeah. I'm not able to put the name, please. Can you please repeat that? Sandeep investments? Yeah. My question is, can you explain what is the purpose of company, doing business differently in the stand alone and controlled statements? So if I understood you correctly, you are asking that in a stand alone and consult, there are different businesses.

41:05 However, please understand that the company is working for EPC when it comes to Vikran Engineering. And at Anopin Solar, which has now become a 100% subsidiary of the company, we are, I mean, developing a solar project, which is having a 25 PPA signed with MHEBCM. And they are generating the solar power and evacuating it to the grid. Sandeep, So your question is why do we have two separate companies? Is that your question? No, no. Yes, exactly. And why is your June quarter less this time?

41:57 This is also explained in the earlier question. So because it's a consolidation of both the company's revenues, same revenue. Have let's So say, I've sold a material to a subsidiary of mine. It cannot be it cannot be considered as part of my revenue when I'm consolidating it. It will be shown as asset in the Balance sheet. In the in the balance sheet with the work done. The same can also be verified in the in the balance sheet that is shared with. Okay. So once once balance sheets will be published, you'll you'll also be able to see the impact. So at the end of end of the day, once the entire project is constructed, around INR 4,200 crores or INR 3,900 crores of total revenue that Vikran will be doing for this project will will reflect in Vikran's books across multiple financial years. But when consolidating, this will... The revenue will shift onto the asset side.

42:58 I hope I was able to answer the question. And if your question is why do we have two separate companies, that is that is to ensure that tomorrow if I want to sell off these assets to a a different entity or to do an invite or do an IPO, it becomes very easy because all the assets are already carved out into a special purpose vehicle. Fair enough. Also, can you comment on your Y o Y June quarter? Why has it gone down in the consolidated? So that is where I would want you to look at the stand alone balance sheet. If you look at our stand alone balance sheet, our Y o Y has rather increased by around 28.2% from $1.59 crores to 204 crores. This this is a figure that I'm saying on revenue from operations. But when you look at the total income, it has increased by around 34.6% from $11.59 crores to 215 crores.

43:54 So it is not a dip. So this confusion is simply because this is the first time the company has published consolidated versus stand alone balance sheet. So I would request, is the time the construction for this project is happening is ongoing, I would request all of you to refer to the stand alone balance sheet or stand alone financials rather than the consolidated ones. Consolidated ones will only be impressive once the client is fully commissioned and fully operational, when we get to see INR500 crores of revenue coming in from that project and from the sale of power and very good high EBITDAs of 80%, 85%, 89% EBITDA next year onwards.

44:47 Just a follow-up question, when is the completion expected for the Within the next twelve months. Thank you so much. Yes, please. Thank you. The next question is from the line of Vishnu Agarwal from PD Wealth. Please go ahead. Hi, good afternoon, friends. Am I audible? Yes, yes, Thank you for the opportunity, sir. I have a question related to the NOPL project. I think you have mentioned that NOPL project is on track. And you have just mentioned that actually it will be completed in twelve months. So we are looking at the next fourth quarter actually for it to be completely finished?

45:36 Yes. Okay, sir. And subsequent to question to that, actually, on a stand alone basis, I have seen that the realization from NOPL was around INR 62 crore, right? Correct. So can I assume that same amount of CapEx is done on the console basis actually? So is that, Adam, correct? No. It will not be in similar, Amma. There is also profit involved in the INR 62 crores that is given. So revenue minus profit is the investment that we've made into the project. Yes. And for the Q2, Q3 and Q4 of this financial year, what kind of a revenue we're expecting from NOP, sir? Again, these are numbers that we've, of course, planned. But please understand there can be slippages between one quarter to the next. We are planning to do around 1,500 odd crores of revenue coming in from this this project, and this is, of course, a conservative number.

46:39 But, yes, the 1,500 crores is what we're planning to do from this project. And like like already available, around INR 62 crores, INR 62 crores, INR 64 crores is what we did in Q1. We are planning to do INR 100 crores in September. We will do the remaining INR 1,400 crores in H2. Okay. So connected for the rest, the remaining of this financial year, we are looking at another INR 1,500 crore from this project. Is that correct assumption, Correct, correct. Can we make? So so until that happen, actually, I think our console will always be have some negative, you know Yes. Revenue because we will be spending a lot of money actually in this project. If there's money or... As well as other resources also, so if you see the company as as a as a Vikran when we are working for a EPC, we are Yes. Do this because of consolidate is looking like we are working for a subsidiary. However, this was a existing project, which we have taken over. It is a part of our our order book, and we will keep on deploying our resources, our manpower, our working capital, everything for the same project as well.

47:51 And how are we trying to finance this actually amount, sir, for NOPL, sir? Where are we getting the funds from? So we are discussing with few agencies. It was already assessed and sanctioned by IRDA before we have taken over. So that way, we are quite confident on that. But apart from that also, we are working with some other... Lenders. Lenders. And we are expecting to close the financial closer in this quarter itself. Okay, sir. And my last question is related to the dispute amount of INR 29 crore. When do you think we will have the final clarity on that, sir? In the court, we cannot, I mean, give any specific time lines. However, what we can say is, yes, we have a strong case, and we are quite hopeful and positive that we'll get a positive outcome of it.

48:47 Thank you so much for the opportunity, sir. Thank you. Thank you so much, Vishnashi. Thank you. The next question is from the line of Ashutosh Akshari from USGI. Please go ahead. Hello. Am I audible? Yes, sir. Yes, please. So, Nakul, I just wanted to understand, like, 4,000 odd crores of NOPL you have taken in order book. So rest of INR 2,300 crores would be the stand alone No. No. No. No. So I'm sorry, Ashish, I just want to correct you. So INR 4,000 crores is not NOPL. For INR 3,500 crores is NOPL including GST in our current order book. Okay. Okay. And the remaining remaining is power T and D and water projects.

49:36 Okay. And so as you said, 3,500 crore order book will be executed in the next twelve months. So that revenue will accrue in as and when the sale will happen. Okay. Yes. Balance 3,000 of that, how much execution you are expecting this year? So like what you mentioned, we are looking at around $2.10 anywhere from $2.10 300 to $2.10 500 crores of revenue this year. So if you consider INR 1,500 crores comes from this, so out of INR $9.74 odd crores will come from other businesses. Okay. So would that fair assumption that NOPL wouldn't have happened, you would have been declining revenue or margin this Not really.

50:27 So please understand, every company has a bandwidth to execute on this, correct? So if at all, was not an NPL, I would have got some other project. It's amounting to similar amounts or lesser amount or more amount that that can be debated, but we would not have stopped or not have improved the benchmark of the build that we would have done. So as mentioned earlier, we are now very choosy, very picky about what orders we go for. We are not we are planning to improve our margins in the new orders that we take rather than go for aggressive bidding and take a project at 8%, 9% EBITDA margin. Just to answer your question in a single line, this project has given us the confidence and the opportunity to target for higher margin orders from the market rather than going to stressful situations and take low margin orders.

51:28 Okay. And the project funding, you said the seventy-thirty would be debt equity? We are looking at around INR 70 five-twenty 5, and we are expecting our disbursement to happen within this quarter. Okay. And you're confident that INR 1,000 crore of revenue or the CapEx, which will be required, that will be fully from the internal accrual? Yes. If at all any further debt is required, any if at all any shortfall is observed. We already have backup plans where we've spoken to lenders. We already have a CFA of around 1,000 crores, which is subsidy of around INR1017 crores coming into this project, which can help us refinance the project immediately.

52:17 And alternatively, the revenue from this project has already started, which also contributes to our equity portion. So yes, so multiple backups available to ensure that the project is executed and there's no issue when it comes to equity commitments or equity visibility. With the... And mind you, please, we are we are talking about ensuring equity is deployed here without affecting... Adversely affecting any of our other projects. So... Yeah. Okay. And the... Sorry to interrupt, sir. Please rejoin the queue for the more question. The next question is from the line of, an individual investor.

53:04 Please go ahead. First thing, sir, thank you so much for asking this question.

54:12 Second question is flooding issue more or less route proven sites. So which is a point of concern. Discipline flooding And and and these these projects are also covered by the insurance. Who the insurance? First question about debt Debt interest, so these are, like, twenty five years of PPA, which is already signed with the with the government. So whatever power generation is there, we will be getting for next twenty five years the sale of power, and that will be much sufficient to cover the interest and the repayment portion.

55:22 And further, there'll be surplus available, which can flow to the holding company and to investors for for an OPL project. So that way, this project is sufficiently covering all all the debt repayment interest as well as equity portion. We are very confident. Project revenues future revenue debt service without putting any stress on to our regular EPC business. Thank you. The next question is from the line of Mahesh Kaushik, an individual investor.

56:07 Please go ahead. Yeah. So this is regarding the debtor days. We... I saw that the debtor days is around $2.96. Can I presume that this is the peak and it will start going down from this level, or it will rise further before it starts going down? No. This is... You can consider this as a peak, and it will go down from here. So as we discussed last year, there was some issue related to the vision project that is also easing out now, as well as the investment was was was done for solar project also is started coming back. So that way, we are quite confident that these there will be a substantial improvement in terms of better days by end of this financial year. And also some improvements you can see in H1 result as well.

57:07 Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Rakesh Madhkekar for closing comments. Over to you, sir. So thank you very much all the investors for your the valuable questions. And with this, since we are progressing as per our commitment on the executions, improvement in the top line, bottom line and the reduction in the working capital cycle. Whatever we have planned quarter on quarter basis, we are exactly on the same line. As we have mentioned now, till we commission this NOPL project, so kindly refer only a stand alone balance sheet to get a true picture of the organization, our growth plans and our even for the Q1 standalone profitability and that the jumping of the pack from 212% is very remarkable.

58:09 And this is really we are putting a lot of efforts in growth and the execution momentum, very two very prestigious important transmission line. We have commissioned that is the pride for the nation. And then we our order book is turned very healthy and that is all very profitable orders we have. We have strengthened our team. So we are looking forward to the robust growth in the organization. So this is in short, I need to tell and ensure all our investors. So kindly have some patience till for the end of this financial year as I committed by end of this financial year, we will be the cash positive. If we commission six fifty megawatt of this solar NOPL, So it is all moving in a very positive direction. And if you see the execution of two point five months, the NOPL, so we have shown a very high growth rate of the execution and which is clearly visible as we had two sixty five megawatt out of nine sixty nine megawatt, we are in a very advanced stage of execution.

59:20 This shows our commitment to our order what we take in our hands. So thank you very much. Thank you all for your patience listening and confidence of the Vikran Engineering Limited. Thank you, ladies and gentlemen. That brings us to the end of today's conference call. On behalf of Vikran Engineering Limited, I would now like to thank the management team and all the participants for joining us today. You may now disconnect your lines.