JKumar Infraprojects Ltd

Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Limited Q4 and FY '25 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 concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference call is being recorded.

The presentation, which J. Kumar Infraprojects Limited has uploaded on the stock exchange and their website, including the discussion during this call contains or may contain certain forward- looking statements concerning J. Kumar Infraprojects' business prospects and profitability, which are subject to several risks and uncertainties, and the actual results could materially differ from those in such forward-looking statements.

I now hand the conference over to Mr. Kamal Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. On behalf of J. Kumar Infraprojects, I welcome everyone to the Q4 and FY '25 earnings conference call of the company. Joining me on this is Mr. Nalin Gupta, MD; Mr. Vasant Savla, CFO; and Marathon Capital, our IR team. I hope everyone had an opportunity to look at our results. The presentation and press release have been uploaded on the stock exchanges and our company's website.

We are pleased to report another year of strong overall performance. Our healthy order book and proven execution capabilities continue to position us as the sustained success. The strategic focus on delivering high-quality projects and expanding our portfolio is yielding positive results, and we remain confident that this momentum will drive further momentum in margin and return ratios in the years ahead.

Delivering results amid complex challenges calls for resilience, adaptability and unwavering commitment. We view technically demanding first-of-the-kind projects, not as an obstacle, but an opportunity for growth, innovation and differentiation.

Our consistent ability to technically qualify for and secure such landmark projects underscores the strength of our engineering capabilities. We take great pride in our role as nation builders, contributing meaningful to the development of critical infrastructure across the country.

Now taking you to the financial performances, the highlights for FY '25. The revenue from operations for FY '25 grew by 17% to INR5,693 crores as compared to INR4,879 crores in FY '24. EBITDA for FY '25 grew by 17% to INR826 crores and the EBITDA margin for FY '25

stood at 14.5% as compared to 14.4% in the previous year. PAT for FY '25 grew by 19% to INR390 crores as compared to INR329 crores of the preceding year. And the PAT margin of FY '25 stands at 6.9% as compared to 6.7% of the previous year.

Now coming to the performance highlights of Q4 FY '25. Revenue from operations has gone up by 15% to INR1,633 crores. The operating margin has gone up by 16% to INR235 crores and the PAT for Q4 FY '25 grew by 15% to INR114 crores. And the PAT margin for Q4 stood at 7%. The order book as on 31st March '25 stood at INR22,238 crores.

The order book includes metro projects contributing 16%, elevated corridors or flyovers contributing 50% and road tunnel projects contributing around 18% and others building projects contributing 16%. We have been awarded projects worth INR4,700 crores during the year FY '25. We see further acceleration in award winning in FY '26. The Board of Directors have proposed a dividend of INR4 per equity share, subject to approval of the shareholders in the AGM. Thank you, and now we can begin the question and answer.

Thank you very much. The first question is from the line of Jainam Jain from ICICI Securities. You may proceed.

Congratulations on a great set of numbers. Sir, actually, I wanted to have a couple of data points from the balance sheet, like what is the advance to suppliers as of March '25?

Can you be a little louder, please, Mr. Jain? Hello, am I audible right now? Yes, now it's good.

Yes. Sir, what's the advance we have given to suppliers as of March '25?

Advance what we have given to supplier is INR91 crores. Okay, sir. And retention money? Retention money.

Retention, retention, what has been deducted from our billing? Yes. INR369 crores.

Sir, what about unbilled revenues and mobilization advances?

So unbilled revenue is INR589 crores and mobilization advance is INR621 crores.

Okay sir. And sir, what is the kind of order pipeline which we are seeing in this FY '26?

Yes. We have already bidded for around INR3,000-odd crores of projects.

And what's the quantum of amount which we are looking to bid for in this year?

Okay, sir. And like are there any major specific infra projects which we are looking to bid for and which have been announced by the government and which we are expecting to be awarded in this year?

Yes. So there are a lot of projects like there are some metro projects in around Mumbai. Plus there are like this Pune Metro Rail project, which is coming up and Thane Ring Road projects are there. So this will be costing around INR4,000 crores to INR5,000 crores. And like in MMR, this project of Versova to Dahisar to Palghar, this project will be coming of around INR18,000 crores. So that should get materialized this year only. Plus like we are also looking for some NHAI projects of roads and tunnels, around INR12,000 crores of that project. Plus there are some water projects as well.

Mumbai (Bombay) is coming up with Metro Line 10 and Metro Line 13 and e-Metro is also going to float underground metro tunnels for Indralok area. So there are a lot of opportunities in water segment, in sewage treatment plants, water tunnels. So there are around INR20,000 crores, INR25,000 crores of projects that we are anticipating to build in this financial year and around INR3,000 crores to INR4,000 crores of this within 1 to 2 months' time.

Okay, sir. And sir, what's the status of L1? I mean when do we expect to receive the LOA for Virar - Alibaug Multi-Modal Corridor project?

Yes. So we are still L1 in that. And like last week, we got this letter from there to extend the validity. So we have done that. So we are still awaiting.

Yes. But sir, it's been a very long time, like has the government been facing any issue with that project?

Yes. So like they were working out the financial closure for that project. So I think like , I just read in the paper yesterday also like today also, they are planning to raise some INR1 lakh crore more. So looking forward for these orders, Mr. Jain.

The next question is from the line of Diwakar Rana from Prudent Equity.

Sir, what kind of revenue growth are you pencilling in for FY '26?

So we are expecting a top line growth of around 15% on FY '25. That should be around INR6,500 crores to INR6,600 crores for FY '26.

Okay. And sir, do you plan to take any debt in this financial year?

So the regular working capital requirement, we are meeting with debt. So it's not any substantial number that we are looking at immediately. But it depends upon the requirement of the working capital and the other capex that's required for the project.

Okay. So sir, what will be the peak debt, if you can give a number?

So right now, our debt is around INR700 crores. So peak debt should be around INR900 crores or so. In this financial year, sir, for FY '27?

That's mainly due to the procurement of the tunnel boring machines and some capex that we will be requiring. So this will be other than the regular capex of INR100 crores, we are expecting a capex of INR450 crores to INR500 crores, which will be coming in from GMLR and the Chennai projects mainly and BDCR, which will be spread over a period of 2 financial years, that is FY '26 and '27.

Okay. So this peak that we will reach in FY '27, if I'm not wrong? No, no. Peak will be in '26.

Okay. '26. And sir, as of today, in how many orders we are L1?

We are L1 in three orders. These two are MSRDC multi-modal corridor and one is a small like Mumbai Metro some finishing work. So it's costing like total INR4,250 crores.

Okay. In the amount, sir, what will it cost, the whole three orders? INR4,240 crores.

Okay. And these orders will convert by when, sir?

So we are just waiting for this, like should get converted in this upcoming quarter. We're looking for this.

The next question is from the line of Vaibhav Shah from JM Financial Limited.

Sir, there were some news in the media that the government is trying to cancel the bids for Virar Alibaug and likely to bid it in under BOT model. So any update on that? Have you received any update?

Yes, so we also -- we also saw this in the paper, like some news like, heard it. But like as I told you, last week only, we have received a letter from MSRDC to extend our bid validity. And some of the tenders, other projects they have done for Pune Shirur project for which they have come up on BOT. But this project, they have asked us to increase the bid validity. So we are hopeful that we should get it.

But in any condition, if you look at the order book of J. Kumar standing at more than INR22,000 crores, we are quite comfortable with the existing order book for the next 3 years top line to achieve very comfortably.

Sir, in case it comes in the BOT mode, so would you be interested in bidding for that?

We have not thought for that right now, but maybe we'll take a call at the right time here.

Okay. And sir, what is our order inflow guidance for FY '26? Order inflow? Yes.

INR6,000 crores to INR8,000 crores is what we are looking for FY '26 as the new order inflow for the current year.

So, that will include this INR4,000 crores MSRDC packages as well, our INR6,000 to INR8000 crores guidance as well? In case it gets cancelled, then guidance will reduce? Or how do we look at that? No, no, guidance won't reduce.

Overall, we are very sure that we should be bagging orders around INR6,000 crores to INR8,000 crores is what is our target. Whether we get it or not, irrespective of that, we'll be having an order book of INR6,000 crores to INR8,000 crores inflowing now for this financial year.

Okay. And sir, secondly, when do we expect to receive the TBM for the GMLR project? And when are we targeting to complete the project?

So we have already done the FAT test, that is the Factory Acceptance Test and the machine has started arriving in India. We have received some part of the consignment already at the job site and certain so it's coming in consignments. So within next 2 months' time, the first TBM will be in Mumbai. And before the December end, the second machine also will be at the job site. We'll be having the FAT test in August for that machine.

And when do we target to complete the project?

So we have a time line of 5 years to complete the project, and we have already started the tunnel casting, some part excavation at the job site. So the work is on track, and we should be able to complete the work on the proposed time line.

Is there any update on Chennai elevated project? How is the execution going on over there?

So Chennai, the NHAI project, the execution is going very good. And like we have already casted like we have done almost 20% of the foundation work. And like the superstructure work has also started. We have started casting of segments, around 270 segments have been casted.

So all the four projects are in line and like we expect good progress in these coming quarters from that.

So are we on the time line to complete in 3 years, the 36-month time line that we have?

Yes. So initially, there was a delay of like 7 months because of the WRD approval that is like it was in the reverse. So straight that we got after 6, 7 months. So like probably the 7 months addition will be there.

So it should be quite completed in sometime around FY '28?

Today is '25, yes, 6, 7, yes, yes, yes. It will be done by March '28, you're right.

The next question is from the line of Uttam Kumar Srimal from Axis Securities.

Congratulations on good set of numbers. My question pertains to EBITDA margin. If you see, in FY '22 we had an EBITDA margin of 14.3%, and FY '25, it's 14.8%. So, in last 4 years, EBITDA margins have improved by only 20 bps. So now how do you see, sir, EBITDA margins going ahead because, see, we had a very robust order book of INR22,000 crores and above and do you think the EBITDA margin we can be able to achieve an EBITDA margin of 15% and more in FY '26 and FY '27? Your take on this?

Yes, so if you look at the EBITDA margins, we have already were at 14.4% in FY '24 and we have changed it to 14.5% in FY '25 and in the coming quarters of 6 to 8 quarters, we expect to come into a band from 15% to 16% from the current 14% to 15%. But it is also pertinent to note that if you look at the ROE of the company, which was 10.2% in FY '22 and which was 13.2% in FY '24 has gone up to 13.8% in FY '25.

And sir, with regard to NHAI project that you just mentioned that you were bidding ,will be looking to bid for NHAI projects, so this will be basically for BOT or HAM project, if you can put some light on this?

These are all EPC projects right now what we are looking for Mr. Uttam.

So like first of all, we quote at our numbers, number one. And like we quote for niche projects.

It's not the normal conventional road projects, what you're saying is about the normal road projects. We are -- what we bid is mostly structure-oriented projects where there's a lot of complexity. So the special projects like the Dwarka Expressway what we did.

So it was INR5,000 crores of projects, but mainly 80% structure oriented. 70% Chennai project is there of INR4,000 crores, which is mainly structure project. So we are looking for such

projects where our USP is there and we can add value and -- because of our operational, because of our expertise and we can maintain our margins of this EBITDA… And sir, yes, yes. Okay. And sir, you have guided for 15% revenue growth in FY '26, don't you think, sir, this is very conservative considering the current order book of INR22,000 crores plus L1 of INR4,500 crores?

So I would like to mention here Uttam that if you look at, the growth numbers of the company, a 15% growth itself, I would say, is a decent growth because we intend not only to increase the top line of the company, but for us at J. Kumar, bottom line is very, very important. So if you look at the overall with the financial discipline that J. Kumar has with a just 0.23 debt equity ratio at gross level and at net level, we are a debt-free company with -- almost positive PAT.

So I would say that in J. Kumar, 15% is what we have been saying, even last year we had mentioned around INR5,400 crores to INR5,500 crores, but we have surpassed it. So -- and with the growing number, I think 15% is a decent stable growth, which we'll be surely looking at surpassing it.

Okay sir, last one sir, what would be our finance cost this year considering the increase in debt, Savlaji, if you can put some light on that?

So debt increase will be same -- at the same level of 2.7%, 2.8%. On revenue? Yes. As a percentage of revenue? Yes. Yes.

The next question is from the line of Hemant Soni an Individual Investor.

Just wanted to ask you one thing. Most of my questions have been answered. Just one query from my side. Like sir, we had earlier guided for the order inflow of around -- for FY '25, I'm talking about, like INR6,000 crores? We have told for INR6,000 crores... INR6,000 crores is for FY '25. Yes, yes.

And sir, the number I think we have got INR4,700 crores. So I mean have the few orders been cancelled or they have been spilled over to Q1?

Yes. So like as we have told before, so there's INR4,200 crores of projects where we are L1. We are expecting this to get materialized in the last fiscal year, but it could not be done. So the department has asked us to extend our bid validity. So we're expecting that to come in, in this fiscal year. So this INR4,700 crores is excluding that L1. Okay.

Otherwise, it would have been INR8,000 crores, yes.

Okay. So I mean it has been spilled over in FY '26, right?

Correct. You're right, you are right, Mr. Hemant. We have secured almost INR5,000 crores of projects. And like additionally, we are awaiting this. You're right.

And sir, what is the time duration for the order book? Is it 24 months? Which one?

The order book which we are having , total order book on a blended basis, total…¦ Yes, it's around 3 years, 3.5 years, correct. 3 years to 3.5 years.

Average, because some projects are 4.5 years, 5 years, some are like 2.5 years, so we consider a average gestation period of around 3 years, 3.5 years.

And sir, that aspiration of $1 billion company by FY '27 and INR25,000 crores of order book, that is still intact, right?

Yes. So like what you're saying is right, we have told this like 3 years back when the dollar was INR75. And fortunately, today, it is like INR85. But like that gives again us a boost to like run more. So we are of course, like sure of achieving the 7,500 as per 75, like we'll try for increasing that as well.

Shall we work out with the number of INR8,500 crores -- because we generally have the habit of under promising and over delivering, sir. I like it, sir. Even I even we as an investor like it.

So we are very sure about crossing the INR7,500 crores our top line by FY '27, which is what we had been expecting. But yes, as you are saying that it all depends upon the actual order inflows and the execution phase that we get depending on the project availability. So let's hope for the best.

Our wish is also the same. So sir, shall we work out with INR7,500 crores as the baseline and on the ceiling side, INR8,500 crores?

Yes, that is a conservative figure what we have already told you, okay? And we, as you know, we believe to surpass the numbers. So like we are also hoping for -- so you can take what you feel right...

Yes sir. Congratulating you all once again for a great set of numbers and doing the fantastic work, sir.

The next question is from the line of Devang Shah from Asit C Mehta Investment. You may proceed.

Congratulations for a good set of numbers. Sir, just to reconfirm, the earlier participant asked that about the order inflow. So you are anticipating INR6,000 crores to INR8,000 crores of new order inflow in FY '26. That includes the L1, that means you are into around INR4,200 crores or is that excluding -- just to reconfirm?

Yes. So that, of course, includes that. But if at all, like 5% chances it may not come, still we are sure of achieving INR6,000 to INR8,000 crores of order inflow.

Okay. And that will add on to your order book. That's what -- that's a good one, sir. And second thing, sir, any kind of execution headwinds that you feel in terms of order execution because the order book is growing very well, as you are saying, EBITDA margin also going to increase, your debt level is also at a comfort level, so execution, any kind of risk that you feel that can potential possibility or you're comfortable?

So our -- like one project in Delhi of around INR700 crores is not started. That was the NBCC project. So we are expecting this to start it in another 2 months, that project. Apart from that, all the projects of INR22,000 crores are going very well and like taken up good speed. So we don't foresee any other issues in any other projects apart from this one.

So if you see last year we already expanded in terms of geography as well as vertical, Mr. Shah.

And like -- so South is where we entered in a big way and right now we are already working in South, West like Maharashtra, Gujarat, then UP, NCR, Delhi. So given an opportunity, of course, we are open for venturing to any state in India, like we are already comfortable.

We have worked in Rajasthan, we have worked in other part of the India also. So we are just looking for the right opportunity. There's absolutely no obstacle for us to not to go to any state.

If we get the right project of the right numbers, we will go anywhere in India.

You see the top line is important. So order inflow has to come. If it comes from the existing state, we give it a priority. But other than that, if the order book requirement is there, we will open up other states also for EPC projects.

Okay. So that possibility can be open up in our future as well. So nothing to -- that way penetration can expand in other geographies? Yes. Absolutely.

Which we have already a proven track record of working in 7 states. So it's totally depending upon the order inflow from which state it is coming and at our numbers. Okay. Thank you so much.

Thank you. The next question is from the line of Varun from Equitree Capital. You may proceed.

Sir, just one question. Is there any issues in receivables or payments in Maharashtra?

We don't see any sort of problems in terms of receivables and that's how you can, I mean, if there is any variations or escalations where there is any approvals required, it delays the project and delays the payment. But otherwise, it's on a regular basis, we are getting the payments. So there is nothing, I think that needs to be concerned about as overall Maharashtra.

And how much capex was done in this year, FY '25 and it was mainly on tunnel boring machine?

So capex for the current financial year was INR241 crores, but it was not for the tunnel boring machine. It's for other equipment for the purpose of new projects.

TBM capitalization will happen means will arrive in this financial year. So the capex will happen in this financial year for the TBM. Okay, sir. Thank you.

Thank you. The next question is from the line of Shravan Shah from Dolat Capital. You may proceed.

Hi, sir. Congratulations on a good set of numbers. A couple of points just to clarify because most of the questions has been answered. Sir, this INR4,700 or INR4,100 crores L1, so if, let's say, in the worst case if this gets converted into BOT and obviously then it will be removed from our L1, then only we are also comfortable for INR6,000 crores to INR8,000 crores order inflow. But sir, if let's say, this continues, then we should be getting additional INR6,000 crores to INR8,000 crores. That's the way one can look at?

But sir, if it reaches then the additional we are looking only INR2,000 crores to INR4,000 crores inflow. So to achieve, our let's say, this INR4,100 crores is there, then additionally, we are only just looking at an or despite that we are saying INR20,000 crores, INR25,000 crores we are bidding, so then we should be aiming this number, INR6,000 crores to INR8.000 crores additional. So this INR4,100 crores retained plus additional INR6,000 crores to INR8,000 crores that we should be aiming. So net-net, should be close to INR10,000 crores to INR12,000 crores would be the kind of a number?

So, Shravan, basically, what we are intending is the order book that the company wants to maintain. So our focus is to maintain an order book close to around INR23,000 crores more or less by end of FY '26. INR1,000 crores, INR2,000 crores here and there depends upon the total opportunity matter, the pricing, the complexity of the projects and if we are getting it in our numbers.

Last year, if you see, we have bagged orders in FY '24 projects worth of around INR11,000 crores. So you cannot have a fixed number set in a mind. It all depends upon the opportunity as Mr. Kamal has already mentioned that if we bag this order, still we'll be looking at around INR4,000 crores to INR6,000 crores worth of project. If it doesn't materialize, we'll look for fresh orders of INR6,000 crores to INR8,000 crores.

So our objective is the total order book as of FY '23, for which the aggression going in for different states, different diversified orders, it all depends upon what orders we keep bagging every quarter. So it has nothing to do with it means, if we bag this, we have to back INR8,000 crores more or only INR2,000 crores. INR6,000 crores to INR8,000 crores is company's focus.

I hope that I could make it clear for you.

Yes, sir. Got it. And second, sir, in terms of the capex, you mentioned the total capex for 2 years, that is FY '26, '27, including the TBM for GMLR and Chennai corridor projects, everything would be of INR450 crores to INR500-odd crores?

Yes, that is in addition to the INR100 crores of maintenance capex that we have mentioned earlier also.

Okay. So total would be INR550 crores to INR600-odd crores that the capex that we will be looking. And it largely it would be the TBM that would be maybe a INR300 crores kind of a number would be there this year. So this year, the capex would be a slightly on the higher side, INR400 crores plus kind of a number should be there? You are right.

Yes. So given that in terms of the depreciation, so just to understand from when the TBM depreciation will start? So this year, FY '25, we are having a INR168-odd crores, INR169 crores depreciation. So how one can look at the depreciation in '26 and '27?

So as Nalin ji has already told that the TBM is right now under shipment. So once the shipment comes to Mumbai (Bombay), then we have to lower the machine and then get it assembled so that the machine start. So it the depreciation will start around Q4 of the current financial year.

Okay. So till then broadly the current run rate of depreciation should remain the same? Yes.

Okay. Got it. And last, sir, we were previously looking at the fundraising, so equity fundraising. So any update on that part, sir?

So we have taken an enabling resolution for this from the Board and for doing a QIP, but it will totally depend upon the situation. And there are a lot of opportunities, as we have mentioned that there are a lot of order inflows that has been expected. So we totally don't want to depend upon the debt. And that's why we are keeping it as an open picture. We haven't concluded anything immediately.

Sir, is it like that this Dahisar-Palghar which is INR80,000-odd crores kind of a project, so also if you can help us when -- in terms of the individual package size and when the actual awarding can start? So, let's say, if we get a one or big, large ticket, maybe INR8,000 crores, INR10,000 crores there, then we would be needing for kind of equity. Is the way one can look at?

So this will take two quarters to get materialized, first of all and we always believe in keeping ourselves augmented for future growth. So at the right time, the right opportunity, we'll take this call, Shravan.

Okay. Got it. Thank you and all the best. Sir last one. Sir, this INR100 crores investment property, what is that for?

So yes, we have taken this property of PSL Vizag for INR100 crores. We have taken a loan of INR90 crores, especially for this without disturbing the liquidity of this company. And already, the inflow has started, and we have already started repaying the money also do that. So in coming -- we see upside of 30%, 40% in that. So that's why we have taken that from NCLT. And in coming 1 year to 15 months, it will be winded up.

Okay. So in next 1.5 years, we will be selling and we are looking at 30%, 40% kind of a return Yes, you're right sir.

The next question is from the line of Bhavin Modi from Anand Rathi.

So the question was regarding the investment property, and I think it has been answered. So yes.

The next question is from the line of Vaibhav Shah from JM Financial Limited.

Sir, out of total mobilisation advance of INR620 crores, what would be the interest-bearing portion?

Around INR350 crores to INR400 crores will be -- I think INR350 crores will be interest being interest, rest are interest free.

Sir, last time you indicated that the number is quite less. So incremental amount for interest- bearing? INR200 crores. Sorry?

Around INR200 crores roughly. Interest-bearing you're talking, right? Yes, interest-bearing. INR200 crores, around INR200 crores.

Okay. And sir, secondly, what would be the restricted cash of the total cash number? So total cash was INR839 crores for March '25. So of that, what would be the restricted cash?

Restricted cash will be around INR325 crores.

Okay. And sir, one more thing. Are there any challenges in clearance from the government for TBM or we are confident to meet the time line of December '25? Sorry, can you come back again, please?

Any challenges in getting clearances from the government for the TBM? Or are we confident to meet the time line of December '25?

No. So the clearance is in terms of what? In clearance of the TBM or clearance of the project you want to say?

For the TBM. TBM and get the work started?

Yes. So there is no issue at all in clearance of the TBM. And as I have mentioned, the first TBM FAT, that is the factory acceptance test is already been done and some consignment of the TBM has already reached the job site. And it is coming in parts and in different consignments as it's a very huge consignment of largest die of TBM in India.

So it's coming in various parts. So within the next 2 months, the machine should be at the job site. And the second machine will be doing the FAT test in the month of August. So absolutely, there is no problem for clearance.

So sir, what will be the total value of both the TBMs put together?

It's around INR650 crores to INR700 crores approximately for 2 TBMs. And J. Kumar, we are buying one and the other joint venture partner, NCC will be buying the second machine.

Okay. Okay. And sir, you mentioned earlier that there is an NBCC project where the work is yet to start. So which one is it, the Silicon City one or Hari Nagar one? The Hari Nagar one.

Okay. And rest all projects are underway of the total book. Yes, yes, all going at very good pace.

Okay. Okay. And sir, lastly, on the Sewri project. So, we had seen some -- in media that there were some issues and delay in the work, especially in the Prabhadevi area. So, any update on that?

Yes. So, for Sewri-Worli connector, they have to demolish this Elphinstone ROB, okay? So, like some buildings are getting affected, so now they have changed the alignment and only one building is getting affected. So, they are in the process to get this permission to start demolition. You're right.

So, when do we expect to complete the project?

So, after the demolition is done, it will take 15 to 18 months to complete the project.

Okay. So, FY '27 end we should complete it?

Yes. If we get the permission in coming 1 or 2 months, we should be able to complete next year. You're right.

The next question is from the line of Ashish Shah from HDFC AMC.

Just one query. I wasn't very clear about the response on the investment property. Can you just please repeat and explain what is that?

Yes. So, we had taken one asset of PSL Limited from NCLT that was costing around INR100 crores. And like we have taken a loan from them, a loan towards that of INR90 crores. And this project was a factory; it was pipe rolling machine factory.

And like that project already like we have started, we have already repaid around INR30 crores, INR40 crores of that by monetizing that project, selling that machine. And in coming 15 to 18 months, we plan to completely repay this loan and complete the project, sell this asset.

Sir, basically, just to be clear, was this an asset which had any use in any of our project activity or it was purely sort of an investment opportunity where we saw that we can liquidate the machines and get some value? Or the end product, is that of any use in our project work?

So basically, it was an investment opportunity where we see upside of 40%, 50%, okay? That was the main thing. And of course, like some of the parts we are also utilizing in our projects where like it comes at a very competitive price to us. So, we are using some of the materials for our Chennai project out of that. But basically, it is an investment opportunity what we saw, and we are seeing good returns on that, Mr. Ashish.

Yes, 40% completed also. So, like in coming 15, 18 months, we'll complete the entire project. We'll sell the entire asset.

The next question is from the line of Ashwin Kumar an Individual Investor.

I just want to know, have you started collecting revenue on the GMLR and the Chennai elevated express, have you started collecting revenue and what's the status of this project?

We have already started booking revenue, we already booked revenues in FY '25 as well. So from FY '26, it will be going like full steam.

So how much have we started recognizing for this year? Can you be able to break up?

We'll have to work out the actual numbers to give it to you, but we have already started generating is what I can say. So, we can provide you separately on a one-to-one basis that number.

Okay, sure. And a follow-up question, just to look at, you have a very huge order book. You're looking at INR20,000 crores, INR22,000 crores. Your voice is cracking.

Yes. Your order book is really large. You're talking about INR20,000 crores, INR22,000 crores order book and it can go up to maybe INR23,000 crores, INR24,000 crores. I'm just wondering about the execution of it because if there's any delays, I just heard that GMLR is delayed by 7, 8 months We are not able to hear you. It's cracking a lot sir. There is some problem in your audio. Can you hear me now? Is this better?

Yes. It's a bit slowly, yes. So, I think it will be fine Yes. So, you have a very large order book of around INR22,000 crores, and it can go up even more to maybe INR23,000 crores, INR24,000 crores. I'm concerned about this execution because if there's any delay, there is a time factor that the government to place -- because not all INR22,000 crores worth of projects would you be executing at the same time, correct?

Yes.

So, would this delay lead to maybe some cancellation of orders maybe?

No, no. This order book of INR22,000 crores, as I told you apart from the INR700 crores project of Delhi, all the projects are going in full steam, so there is no chance of cancellation of any order, which is INR22,000 crores plus.

And we have already started booking revenues on those projects, some through preliminaries activities and some on execution. So we have separate teams for taking up these projects. So like if we are having INR22,000 crores, it doesn't mean that the same set of people are working.

We have separate resource allocated to each project, whether it is staff, project heads, project directors, project managers, your equipments. So, every project is treated as a separate company, as a separate project. So, all the resources are dedicated to each project. And of course, some machineries, which we can keep moving around for optimum utilization is always there.

So, there is no reason of any delay or any cancellation and we having so many projects in a concentrated area, there is no risk in terms of margins or in terms of overhead loss in case of any delays also, though all the projects are on time.

And one last question. So this INR22,000 crores would be executed over a time frame of maybe 3 years. Is that right? Yes, 3, 3.5 years, you're right. 3 to 3.5 years, okay.

As there are no further questions, I now hand the conference over to Mr. Gupta for his closing comments.

Yes. I would like to thank once again to all of you for joining us on this call today. We hope we have been able to answer your queries. Please feel free to reach out to our IR team for any clarifications or feedback. Thank you all.

Thank you. On behalf of J. Kumar Infraprojects Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.