Power Mech Projects Limited (POWERMECH) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Power Mech Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note this call is being recorded. I now hand the conference over to Teresa John. Thank you, and over to you, ma'am.

Thank you, Shri. On behalf of Nirmal Bang Institutional Equities, I would like to welcome you all to the 2Q FY '26 Earnings Call of Power Mech Projects Limited. The management today is represented by Mr. Rohit Sajja, Whole-Time Director; Mr. S.K. Ramaiah, Director, Business Development; and Mr. N. Nani Aravind, Chief Financial Officer. I will now hand over to the management for their opening remarks, after which we will open up the floor for Q&A. Thank you, and over to you, sir.

Good morning, everyone. I'm Aravind, CFO of the company. I have with me Mr. S.K. Ramaiah, Director, Business Development; and Mr. Rohit Sajja, Director, Business Development and Operations. I take this opportunity to welcome you all to our quarter 2 FY '26 earnings call. The company's performance for the second quarter of financial year '25-'26 remained in line with our set targets, reflecting consistent operational momentum. For quarter 2 financial year '26, the company reported total income of INR 1,249 crores, representing 19% increase over INR 1,046 crores in Q2 FY '25. EBITDA stood at INR 158 crores, up 18% from INR 134 crores in the corresponding period last year, while profit after tax was INR 78 crores, registering a 12% growth compared to INR 70 crores in quarter 2 FY '25. The EBITDA margin remained stable at 12.7% against 12.8% last year, marginally impacted by higher operating costs. The PAT margin declined from 6.7% to 6.3%, primarily on account of increased finance and depreciation costs. For the half year FY '26, the company delivered a strong performance during the first half of FY '25, '26, maintaining growth momentum across key parameters. For half year FY '26, the company reported a total income of INR 2,554 crores, reflecting a 24% increase over INR 2,062 crores in half year FY '25. EBITDA stood at INR 340 crores, up 33% from INR 257 crores in the corresponding period last year, while profit after tax was INR 159 crores comparable to INR 131 crores in half year FY '25. The EBITDA margin improved from 12.5% to 13.3%, supported by the exceptional revenue recognized from the Riverbed Mineral project in the previous quarter. However, the PAT margin was marginally declined from 6.4% to 6.3%, primarily due to higher finance depreciation and tax costs. Revenue mix for the quarter 2. The company's revenue mix was mechanical business, INR 435 crores, up by 90% from INR 229 crores in quarter 2 FY '25, driven by strong traction in industrial power construction projects. Civil segment, including railways and water distribution projects, INR 309 crores, down by 22% from INR 395 crores in quarter 2 FY '25, impacted by extended rains in key projects and delayed bill certifications in the Water division. O&M, INR 440 crores, up by 12% from INR 391 crores, supported by new O&M orders received during the year. Electrical business, INR 22 crores, up 138% from INR 9 crores of last year FY '25 due to execution of railway, civil and signaling telecommunication works during the year. Mining business, INR 31 crores, up by 164% from INR 12 crores of last year, supported by higher offtake arrangement from sale. Other income of INR 11 crores compared to INR 10 crores in quarter 2 FY '25, mainly on account of margin money deposits -- increase in the margin money deposits. The geographical mix for the quarter was 95% domestic, 5% international, while power sector contribution remained at 79% with non-power sector accounting for the remaining 21%. So revenue mix for 6 months for the first half of FY '26, the company's revenue mix was mechanical business, INR 658 crores, up by 99% from INR 331 crores in half year FY '25, driven by strong traction in industrial power construction projects. Civil segments, including railway and water distribution, INR 890 crores, down by 5% from INR 937 crores half year FY '25, impacted by extended rains across key sites and delayed bill certification in the Water division. O&M division ended at INR 837 crores, up 14% from INR 732 crores in half year FY '25, supported by new order inflows during the period. Electrical business, INR 89 crores, up 427% from INR 17 crores in half year FY '25, reflecting a strong execution in railway and civil signaling -- civil works and signaling and telecommunication works. Mining business, INR 57 crores, up 122% from INR 26 crores in half year FY '25, supported by increased offtake arrangement with SAIL. Other income, INR 22 crores compared to INR 19 crores in half year FY '25, primarily due to higher margin money deposits with banks. The financial parameters are concerned, the company has witnessed a marginal reduction in return on equity from 3.4% in FY '25 to 3.37% in FY '26, primarily due to higher finance and tax costs, which impacted PAT. Similarly, return on capital employed decreased slightly from 4.73% to 4.58%, driven by lower operating margins resulting from the seasonal factors such as extended rains. With the anticipated normalization in collections with continued strong traction in industrial power construction and ramp-up of MDO revenue from the KBP mine starting quarter 3, both ROE and ROCE are expected to improve in the coming quarters. The company's negative operating cash flow has improved, reducing from INR 166 crores negative in half year FY '25 to INR 63 crores negative in half year FY '26, primarily due to the realization of receivables during the period. The company is actively engaging with the clients to expedite certification and clearance processes and is confident of realizing the outstanding dues in the coming months. This is expected to further improve the operating cash flow and reduce the reliance on the working capital limits. Net current asset days, excluding cash and cash equivalents, increased from 128 days in FY '25 to 151 days in FY '26, primarily due to delays in certification of water works and realization of receivables. These delays have resulted in higher current assets. Company is actively pursuing certification and payment clearance with the client and significant improvement in the net working capital delays is expected post certification and realization of bills in the water division. Gross and net debt levels remained well controlled despite delays in certification of water bills and realization of receivables. As on 30th September '25, the gross debt stood at INR 839 crores and the net debt is around INR 360 crores. The average debt equity ratio as on the same date was at 0.37x. The company is focusing on expediting certification and recovery of bills in the Water division, which is expected to further reduce the net debt and the debt equity ratio in the coming quarters. So order book status during quarter 2 FY '26, the company secured new orders worth of INR 1,042 crores. As of 30th September '25, the order backlog stood at approximately INR 53,776 crores with the executable order excluding 2 MDO projects at INR 14,226 crores. In quarter 3 FY '26 till date, the company has received new orders worth of INR 2,577 crores, taking the total order backlog of INR 56,353 crores with the executable order book, excluding 2 MDO projects increasing to INR 16,804 crores. The company continued to actively pursue tenders and is targeting to secure INR 10,000 crores in the new orders by March '26. During FY '26, a significant increase in order inflow is anticipated, particularly from the power sector across segments, including O&M, mechanical, civil construction and BOP, EPC. As of date, the company has already secured orders worth of INR 4,889 crores, achieving approximately 49% of the annual target. The company will continue to prioritize high potential areas, including industrial plant operations and maintenance, railway and water infrastructure and MDO projects to drive substantial growth and strengthen market leadership. All existing projects are progressing well and remain on track, except for the water division, which has experienced delays due to slower bill certification due to non-allocation of funds. For the financial year '26, the company has set a revenue target of INR 6,500 crores. Subject to the pace of traction in MDO business, EBITDA margins are expected to remain consistent with the FY '25 levels, and the company is confident of achieving approximately 25% year-on-year growth, revenue growth. Margins are anticipated to remain stable with potential upside depending on the contribution mix from O&M and mining segments. The order book outlook for the current financial year remains robust, supporting the growth trajectory. Power Mech is well positioned to demonstrate execution and conversion of approximately 40% of its opening order book annually. Additionally, the MDO business is ramping up steadily and both O&M and MDO segments are expected to be key drivers of the growth in the coming years. So with reference to our MDO business progress is concerned, KBP mining mobilization of heavy equipment has been completed and mining operations commenced on 15th of April '25. Until October '25, the company has achieved around 6.15 lakh cubic meters of overburden removal and the activity is continuing as planned. Coal production is expected to commence in November '25. The mine approach roadblocks are in progress, and the company is targeting minimum coal dispatch of 1 million tonnes during the year with a plan to scale up of operations to 1.5 million tonnes. All land required for mining has been handed over to CCL. And the other -- second mine at the Kalyaneswari Tasra project, OB removal and coal dispatch operations have been ongoing since January '24 with approximately 8.7 lakh tonnes of coal produced and dispatched to the existing washeries as per the sale direction. The project received environmental clearance for the 3.5 million tonnes per annum washery in October '24. So we have appointed -- design consultants have been appointed for railway sidings and washery development. And the major washery equipment design and vendor finalization have been completed. Equipment mobilization is in progress. and civil construction works have been -- have commenced. The washery construction is targeted for completion by September '26. The Phase 1 R&R Colony spread over 4.5 acres has been completed and handed over to the project affected families -- handing over of the colonies to the project affected families is in progress. Approvals for Phase 2 covering 41.11 acres are currently under process. While sales current coal offtake remains below the plan due to the limited external washery capacity, the company is actively engaging with stakeholders to resolve these constraints and ramp up the production in the coming months. So with this now, I request Mr. Ramaiah garu to update on the key business development initiatives and future outlook.

Yes, thanks, Aravind and Rohit garu, especially Aravind for all the numbers you have brought out. Now I think as Aravind has rightly said, the business is continuously driven on the bullish pace because of the government initiatives in infrastructure, new projects and many of the other initiatives, which have been taken. And now private sector also is catching up. And as a company, which has got an all-round spread in many segments, power, infra, then railways, roads and then export also, we are well positioned to catch up these opportunities. And there can be some variation based on quarter-to-quarter basis in terms of investments and the way the scheduling of the tenders has come. And particularly, our key areas of focus will be BHEL and then L&T, which are the EPC contractors, which have taken bulk of the orders from the developers, NTPC and the generating companies. There is a substantial flow is expected on that in terms of the ordering in the next 6 months because the initial order pickup was a little bit slow because of the engineering phase, which is involved. And that is where we are expecting more opportunities. And other key developers are the Adani Group, which we have substantially established the presence in many projects in about 6,000 megawatts and working in about INR 2,500 crores of opportunities -- sorry, ongoing jobs. And they also have to do substantial balance ordering of the new projects and all because Adani's total intake of the new projects, what they have taken is more than 22,000 megawatts. And NTPC has taken nearly 12,000 megawatts, more than 12,000 megawatts. Together, they contribute substantially out of the total 46,000 -- 47,000 megawatts of ordering, which has been done in the last 18 months. Therefore, there is a substantial balance ordering in the main power plant sector itself, which will -- which can open up the opportunity size, which can be between INR 30,000 crores to INR 45,000 crores in segments of ETC, then civil, structural and other miscellaneous projects. Another key element of this capacity addition is that the annual capacity addition, which was -- which has come down drastically is expected to go to 8,000 to 10,000 megawatts. And since O&M, we have got a very strong presence and we got a substantial penetration in the market. It is expected about INR 1,200 crores to INR 1,500 crores of opportunities will be generated every year in the next 5 years based on these capacities added. Now this is one part of the power sector business, which is about 47,000, 48,000 megawatts, which has been ordered by the developers. But there is an ongoing investment, which is going to come up with the new developers that is another 40,000 to 45,000 megawatt is there. That is perhaps to be ordered in the next 2 years based on the development phase and all. Therefore, we expect a bullish phase in the power sector development, both for the -- our traditional business of construction, then the civil works, structural works and other miscellaneous works. And then once it is commissioned, the O&M in at least 7 to 8 years is there. That is one of the key things. Now the new business areas, what we are focusing is particularly in the infrastructure side, railways, and then about INR 30,000 crores of ongoing opportunities, we are tracking it. And that should take us reasonably well to the targeted program of achieving order booking of about INR 10,000 crores. And the new investment -- other new investment, which is expected, is in the steel sector is opening in a big way, particularly SAIL is planning to invest more than INR 1 lakh crores. And IISCO Burnpur has already started issuing the pretender inquiries, and we are participating in that. That is mostly related to the installation jobs, service jobs and civil structural work, which is our domain strength. And that is expected about INR 8,000 crores to INR 10,000 crores in the next 3 to 5 months. That is a major area of investment for us. Then there are opportunities in the other sectors also. Then for example, NMDC, they have a planned investment of INR 50,000 crores to enhance the capacity of the iron ore from 50 million tonnes to 100 million tonnes. And we are in continuous discussion with the NMDC. NMDC has also started the tendering process. 3 BOT tenders are already notified, 2 in NMDC Kirandul, 1 in Donimalai. And that is one of the areas of interest because iron ore is going to be -- demand is going to be there, and we would like to see how we can enter that business and with the expertise what we have developed in the MDO business and BOT business. Therefore, these are the 2 significant developments which can be there in the next 6 months. And as I already said, the ongoing tenders of nearly INR 30,000 crores, INR 35,000 crores that is on tracking. And that should take us reasonably well for meeting the INR 10,000 crores of target. And export jobs also on the O&M side and the maintenance side, certain initiatives are being taken place. That is going to happen. And the O&M side also, we had some successes in this year also. And based on the commissioning program of the balance new plants and all, we are keeping a track on that, and that will be continuously focused. This is what I would like to say. Thanks to the team.

[Operator Instructions] The question is from the line of Vinay from Hathway Investments.

Yes. Just wanted to understand how much is your outstanding receivables from the JJM projects?

So receivable is around INR 226 crores, sir. INR 226 crores. And after that, the last 1 year, there is no fund allocation to this project and the work executed to the extent of INR 220 crores of work is under certification. So total INR 446 crores is the total receivable and WIP together.

Okay. And in your total book, how much is your unbilled revenues?

INR 220 crores.

No, that's for JJM projects, but overall?

Overall, it is around INR 960 crores.

Okay. And just -- sorry, you're saying something?

INR 960 crores. In that if you remove this INR 220 crores, roughly INR 700 crores is the regular operation business.

Okay. Just on one thing, you're dependent on power sector, especially thermal power plants is very substantial. In the long term, post 2030 scenario, are we looking at any kind of reduction in that from the environmental point of view? And how would the company be looking at it? It's a very long term, but still.

But you're correct also. After all, ultimately, the CO2 emissions has to come down in the whole of scenario. And this is a short-term measure of 7 to 8 years because of -- to maintain the -- I think, we have discussed this matter many times over the grid stability, and that's why government's plan is to add 80,000 megawatts to 1 lakh megawatts. But ultimately, what happens, these power plants also has to run another 25, 30 years minimum. And then somewhere in 47 to 50 perhaps they will be looking at a downward trend in the emissions and the decommissioning of the power plants. But what will be there? They will be [ upending ] the business in the ETC segment and civil and structural in the next 5 to 7 years. But afterwards, O&M also will be there. As our O&M business will substantially go up. As I said, INR 1,200 crores to INR 1,500 crores is opportunity, and we have got a huge penetration in the market and ownership there. And that should continue to rise in a big way. Therefore, to some extent, that will definitely be made up. But what is going to be the other second view is that the nonpower sector, steel sector, infrastructure side and then petroleum and this one, oil and gas sector also, new plants are expected. And there, we can possibly look for diversification and this experience what we have gained it. Like Andhra Pradesh, they are planning to put a INR 60,000 crore capacity plant and then Madhya Pradesh is coming up. Then steel plants are planned, too. SAIL has told you about INR 1 lakh crores of investment. ArcelorMittal is coming up. JSW is coming with a huge investment in Maharashtra. Therefore, in all these areas, already company has got some sort of a penetration expertise and experience and that will be enhanced into where these gaps will certainly happen. And therefore, we are confident we will maintain our growth.

The next question is from the line of Mohit Kumar from ICICI Securities.

Sir my first question is on the large BOP opportunity, especially from the likes of NTPC. So there was the Gadarwara, there was, I think, one more Nabinagar. And the third one, which will come up, I think, for the bidding is the Telangana. I don't think we have participated in those large BOP opportunities, be it Gadarwara, be it Nabinagar. I just want to understand, is it that we don't have prequalification for the large opportunities? Or do you think is it not wise for us to bid for the large projects? What is holding us back that we're not even participating in those large tenders?

Yes. Mohit, sir, this is Rohit. Thanks for the question. I think it's very relevant, especially considering the fact that we recently won a BOP order with BHEL for Singareni Thermal Power Plant in Telangana. So by the time these tenders have been conceived, NTPC took a different -- slightly different prequalification route in which we were only qualifying as a consortium partner, along with other players who would bring in some kind of expertise. And then later on, one more evolution has happened and then this prequalification criteria had come up. And through this, we are qualifying and going forward and NTPC has also chosen a bulk tender route, right? So I think we are -- our focus is mostly on unit capacities where there is 1 unit of 800 megawatt being set up or 2 units of 660 megawatts that are being set up. And we should -- going forward, you'll see us participate in a lot of these tenders. Yes, that's the update on this.

Understood. Understood. So Nabinagar is pending. Nabinagar shall come up in next 1 year, so we should be able to participate, right? Correct? Is that fair understanding? Gadarwara and Nabinagar is done, I think? We are not one of the participants. And they also have a large opportunity from most of the states, right? Like most of the states, BHEL have won the tender. So how is the BHEL pipeline looking right? We have seen a lot of tenders from BHEL side. Are you only looking for a particular kind of packages? Or are we also -- do we have the capability to do this CHP, AHP also?

See, we have developed expertise not only in the traditional ETC business, O&M business, the power sector. We also developed the expertise to handle the -- one of the key packages in the balance of plant and the supporting packages on the coal handling also. That is we have done about 4, 5 contracts and we have gained that experience that should help us. But basically, BHEL's outlook will be -- is that they will continue to drive the orders because L&T is there unless the government takes a policy decision to import the equipment from outside. I don't think that will happen. And BHEL had this wherewithal capacity to 16,000 to 18,000 megawatts per year a couple of years back. And of course, we have seen the downward trend and all those things happened. Now it has picked up. And looking at the long-term investment, at least 7 to 8 years, BHEL should be ramping up their capacities and they should be reasonably able to bid for all these things. And they will continue to be a key player. Because as I said, the 47,000 megawatts, what has been ordered by the developers, still some substantial ordering has to be done by the various vendors like Adani and even NTPC for the new tenders, what they are going to call. And also all the various utility companies, utilities companies have got a share of more than 12,000 megawatts. And that also has to come up. Of course, to some extent, they have started ordering. Then balance ordering of the -- as I said, the 46,000 megawatts new developments, which are going to happen. Therefore, these 46,000 megawatts will be a substantial chunk of the order, which will come up in the next at least 2 to 3 years, which will be reasonably shared substantially by BHEL and to some extent by L&T also. Therefore, we should be having a long-term plan for at least executing 8,000 to 10,000 megawatts in the next 10 years.

And Mohit sir, just adding to what Ramaiah sir had said. So the recent BOP package that we won entails us to construct a coal handling plant, ash handling plant, which is an expertise that we have developed over years. As a construction company, we are just adding engineering as an expertise. We have partnered with Tata Consultancy Engineers, TCE. And also procurement is anyway a commercial activity. And hence, our entry into this space. And also going forward, as I had said earlier, we want to participate in the state utility projects that are either planning on separating the BTG and BOP or are awarding the entire plant to an EPC player like BHEL and then we don't mind subcontracting under BHEL or L&T to take up the BOP PC works and BTG erection works.

The next question is from the line of Mahesh Patil from ICICI Securities.

Sir, my first question is on the steel opportunity that you mentioned, right? So just if you can explain what exactly are we doing there? And how much is our opportunity in terms of if we consider a cost of steel plant, say, CapEx for 1 MTPA, how much will be our opportunity, if you can quantify?

Because the long-term investment profile of the government is to invest about INR 10 lakh crores in the next 5 to 7 years. Because the present steel capacity is 200 million tonnes, wherein last year's production was 152 million tonnes. That has to go up to 300 million tonnes of capacity addition by 2030, '32. And as we have seen, a 5 million tonnes -- 4 million to 5 million steel plant needs about INR 35,000 crores to INR 45,000 crores of investments. And all the players, for example, SAIL has got a plan, clear plan they established. First, I think it is IISCO, Burnpur. Then they will have a plan for the Bokaro and then Rourkela expansions also. Then ArcelorMittal is coming with a greenfield plant in Andhra Pradesh and some expansions will be there. JSW and then JSPL both are planning capacity additions. And then there are some new players also coming up. For example, Rashmi Group is coming with an investment of about INR 10,000 crores. And there is a group available in -- this one -- Bellary-based mining groups also. They are also planning investment about INR 15,000 crores to INR 20,000 crores. Therefore, the total investment of more than INR 3 lakh crores is -- it will happen because of the continued growth of the -- of course, [indiscernible] the growth of the economy. And as the economy grows, steel requirement also demand has to be there. In fact, many of the steel suppliers are also complaining that while we are importing also material from outside. Therefore, we have already had experience of doing steel plant construction in JSW Dolvi and JSW Vijayanagar and ongoing, we are doing some jobs in JSPL. And our construction experience and O&M experience and our project management experience, what we have developed over the years in the power sector will be rightly used for the steel sector and also in the mining sector; for example, NMDC jobs and the mindset facilities, which they are going to create. Therefore, this is where we are quite bullish on these 2 areas.

Okay. And sir, on the MDO side, what is the production that we are expecting in FY '26 and '27?

First mine, which we took CCL, Central Coal Fields Limited, we anticipate to do 1 million to 1.2 million before March '26, which is going to translate to INR 140 crores to INR 150 crores in top line. And the other mine, which we took with SAIL, the 4 million metric tonnes per annum one, we anticipate to do 360,000 to 400,000 tonnes before March, and we are already on track. We have done half of that already. And it -- this is going to translate to INR 57 crores to INR 65 crores in terms of... FY '27 ramp-up in both the mines, there's going to be a significant ramp-up in FY '27. FY '27, KTMPL, the 4 million metric tonnes per annum with sale, we anticipate to reach peak rated capacity. And the first mine in which we are going to do 1 million will get ramped up to 2.5 million to 3 million by FY '27, translating to a combined top line of INR 550 crores to INR 600 crores.

The next question is from the line of Pritesh from Lucky Investments.

Just an observation, and I don't know how the company is looking at this. So if you look at the last half, basically the first half now and also the second half last year, if you see the financial deleverage is kicking in with the rising debt because of some of the receivables, which have been stuck, working capital being expanded and the investment, which is done in the coal assets, which is not yielding the necessary desired revenue. If you see our even coal business is -- the [indiscernible] have been postponed by in excess of 1, 1.5 years easily. So how are we reviewing this situation? You may have your 15%, 20% top line growth, but nothing is flowing down to the bottom line. So how should we be viewing as a management situation? What are the guardrails? What is the -- what are the steps taken?

The major increase in the working capital utilization is because of the Jal Jeevan Mission water receivable spending. If you look at the March, I have a receivable of around INR 287 crores and where as of September it is...

So we know the figures. We know these figures. What should be done? We know the figures. We know the opportunity, incremental new inflow.

We are pursuing with the client government, sir. Recently, we have met the Chief Minister of UP, government called for all the clients, and they assured us that they will certify these bills by -- in a couple of months. So they are at least allocating the -- releasing the funds from the state funds. So we are hoping by March, we'll bring all this into the control and we'll reduce our working capital utilization with that receivable, sir.

Any -- see, we were not active in water. We landed up taking some of these projects at the fag end. So any review process that you implemented incrementally?

Sir, the washery, as of now, we have not raised any new loans and we have raised a QIP of INR 240 crores, that INR 200 crore fund still is with us. So we are utilizing that in the current year. And the next year only, we'll raise the borrowing, sir. By the time, we'll also recover our existing receivables and certifications will complete and we'll bring this to the normal.

Okay. And from the execution point of view, what kind of revenue execution that you see ex of mining this year in FY '26?

Around -- ex of mining, around INR 256 crores -- around INR 6,000 crores to INR 6,200 crores we can achieve from the regular business, sir. INR 250 crores we projected from the mining business.

And how much was mining business last year?

Last year, it was around INR 84 crores, sir. Around INR 84 crores.

So basically INR 5,160 crores in EPC and moves to basically INR 6,200 crores.

Yes.

The next question is from the line of Mitali Shah from Shriram Mutual Fund.

I wanted to ask you like what is the split of the order book and order inflow of the various segments like civil and mechanical, O&M, all of that?

Total INR 14,226 crores as of 30th September consists of INR 1,700 crores roughly from the mechanical business, power erection business; INR 9,000 crores is from both power civil and infra civil; O&M of around INR 2,700 crores; electrical business of around INR 800 crores. So we have domestic of around INR 14,000 crores and international order of around INR 220 crores. So from power side, mix is INR 8,300 crores is from power side and infra side is around INR 5,900 crores.

Okay, sir. And for the order inflow?

For the order inflow this year, we are projecting INR 10,000 crores. We are projecting erection business -- from erection business around INR 2,000 crores; from the civil business, INR 2,400 crores; O&M around INR 2,600 crores; electrical business around INR 300 crores. Apart from -- as a new initiative, we are starting the solar and other green energy projects we are targeting. So we received around INR 159 crores orders during the year; and BOP EPC of around INR 2,555 crores. So around INR 10,000 crores, this is a mix of various segments.

These orders are expected, right?

In the sum of orders we achieved INR 4,900 crores of orders we already received and the balance we are expecting before March.

Can you give the split of the INR 4,900 crores in the segment?

We received mechanical business of around INR 49 crores, civil business of INR 1,500 crores, and O&M business of INR 761 crores up to September. During the -- till date, we have received around INR 2,570 crores orders from the BOP EPC. So for the mechanical, new addition -- new SBU addition of EPC, around INR 2,550 crores we added.

And what will be the execution time line of these major projects that you just listed out?

Generally, it will be 2, 2.5 years is the typical -- yes, 2 to 3 years is the general typical. For the EPC, it is 38 months. So it's roughly 3.5 years for the BOP EPC.

The next question is from the line of from Bharani from Avendus Spark.

So I have a conceptual question on the power sector. One, if project cost is around INR 10 crores per megawatt in the thermal side, what is the scope for power mix to say the opportunity or orders from this particular INR 10 crores per megawatt?

You are correct, INR 10 crores per megawatt can be including the IDC cost. But the EPC cost can be INR 8 crores to INR 8.5 crores depending on the scope of response pertains to the single unit, it can be more with 2 units or 3 units and slightly less. And now it is standing at -- greatest order BHEL has got is INR 8.3 crores, for NTPC, [indiscernible] megawatts. Now as far as the opportunity in this, for BHEL -- sorry, for the Power Mech is concerned, there are 2 sectors of the business. The main plant side, the total investment can be around 55% of this INR 8 crores, INR 8.5 crores. And normally, the service portion of it, we can say it will be around something like INR 1,000 crores will be coming in the main plant for each unit -- for each plant of 2 units. That is a -- suppose 1,600 megawatt is there, about INR 1,000 crores can be the opportunity there. That is the main plant. And the balance of plant, entire same opportunity is available, whether we want to bid on the service side of the business or on the balance of plant of the business, subject to the qualification. And balance of plant will be anywhere between INR 3.5 crores to INR 4 crores. And that is also in some segments, if it is called individually, we can bid also for the coal handling and material handling and then civil structures, then for the other miscellaneous civil works like IDCT, cooling towers and various other jobs, structural jobs, et cetera. Therefore, we can say, including the civil work, structural work, then service portion of the installation wise, we can safely take 25% to 30% is the opportunity available out of this...

So 30% of INR 8.5 crores?

Overall, that is the maximum.

Okay. So 30% of INR 8.5 crores. So this will be during the project construction. And O&M comes in the operational period, right?

O&M if comes for commissioning that will come between 11 lakh to INR 15 lakhs per megawatt per year. And then one more thing is that where BOP is there is a complete package, as I already told you, that will be the complete opportunity on 40%, 45% of INR 8.2 crores as an opportunity for the BOP.

Right. So coming to the next question, you mentioned about 46,000 megawatts yet to be awarded in the coming year, plus about 12,000 megawatts from state utilities. Like -- so I can roughly take 40% of this overall opportunity to be our long-term opportunity, right, during construction?

I told you the total ordering, which has been done in the last 4.5 years, which is under execution at various stages is roughly comes to about 47,500 megawatts. So what I said was this is, you can say, mostly ordered in the EPC mode or on the main plant side. And in the case of Adani, they have taken a different route. They are ordering the main plant and the equipment supplier, whereas the balance of plant and the services job, they are awarding themselves. Therefore, that also, as an opportunity, is available for a contractor like us. Apart from that...

So sir, overall, to answer your question, in this capacity, 55% will be our opportunity.

Understood. So basically, 46 plus 12 that is around 58 gigawatt.

8.5 to 9 x 60%.

Okay. 8.5 x 60%. Got it. So that comes to around INR 3 lakh crores. Yes. Got it. So my second question is the ability to actually foresee this 46,000 megawatt and 12,000 megawatts upcoming thermal, is there a surety that this will happen in the light of, say, storage capacities ramping up or becoming more prevalent? And do you foresee any delays or this not actually happening in the next 3 to 5 years?

Planning by the CEA and the Power Ministry. For -- and even the customers also have been identified like Adani, NTPC is having plans in expansion Patratu and Meja, and then Obra, Darlipali. Tata Power has got plans. Vedanta has got plans. Then for example, SJVN Buxar got a plan to add one more unit. CIL, Coal India wants to enter the power sector also. Then JSW and JSPL both are planning it. NLC is also planning. For all these people either in a brownfield or a greenfield, they are going to put up this -- that is the capacity has been arrived at it. It's a question of -- in terms of timing and execution, it is normally a development process in terms of environment clearance, land acquisition, investment, achieving the financial closure. This, we all have seen there are certain -- always certain things can be there in that which can take the project forward or some slowness is there. But these capacities are a must to balance the grid capacity for another 7, 8 years, it should be established. That was positively is expected to come up.

Okay, sir. My final question, since we identified the opportunity of INR 3 lakh crores for this 58 gigawatts in the, say, medium to long term, what would be roughly our market share or expectation to win over this 5 to 7 years on this INR 3 lakh crores of opportunity?

No, you can take, as I said, on the upper side, if you take about 30% on the service side, on the civil structural services side of installation. And if the balance of plant, we can take about 35% to 40%, 45% easily.

You're talking about the market, right?

Everything we get qualified there.

Yes, yes, that's the total available market again. But out of this INR 3 lakh crores -- close to INR 3 lakh crores, we anticipate to bid for at least INR 2 lakh crores worth of these projects, sir. And in power sector, our traditional hit ratio has been 50% to 60%.

Okay. Got it. So essentially INR 1 lakh crores. INR 2 lakh crores we will bid, INR 1 lakh crores potential inflow.

Yes, idealistic scenario -- a little conservative number is what I gave you.

The next question is from the line of Deepak Poddar from Sapphire Capital.

Sir, just wanted to understand, first, on the MDO side, you mentioned, I think, this year, around INR 225 crores to INR 250 crores and next year, INR 550 crores, INR 600 crores of execution that we might do on the MDO side, combining both the mine. So what sort of margin profile we are looking at, at both this year and next year at MDO level?

This has now just started the production because Tasra has not yet -- we are using only the small capacity of production we are doing monthly around 50,000 to 60,000 of tonnes. KBP just started this year and slowly, we'll ramp up the production. So on average, we may get around 15% to 16% EBITDA blended together.