Nov 13, 2021 / 12:30PM GMT
Operator
Ladies and gentlemen, good day, and welcome to the Dilip Buildcon Limited Q2 FY '22 Results Conference Call, hosted by Axis Capital Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Jiten Rushi from Axis Capital Limited. Thank you, and over to you, sir.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
Thank you, Faizan. Good evening. On behalf of Axis Capital, I would like to welcome everyone for the Q2 FY '21 conference call of Dilip Buildcon. From the management, we have with us today, Mr. Devendra Jain, Executive Director and CEO; Mr. Rohan Suryavanshi, Head of Strategy and Planning; Mr. Radhey Shyam Garg, CFO; Mr. Rahul Dhandhania, GM, Finance; Mr. Devender Goel, GM, Accounts; and Investor Relations team from S-Ancial.
We thank the management for giving us this opportunity. We shall begin with opening remarks from the management, followed by Q&A session. I would like to hand over the call to Mr. Rahul Dhandhania for his opening remarks. Thank you, and over to you, sir.
Rahul Dhandhania -
Thank you, Jiten. First of all, very good evening to all, and thank you for joining us today. We hope that you have been doing good and well and staying safe in this tough and extraordinary times. First of all, I, along with the entire DBL family, would like to welcome all our investors and partners to this conference call for the quarter ending 30th September 2021. It is my great pleasure and honor to be able to host this call and update all our partners of the important updates for this quarter and our plans for the year going forward.
Before I start, let me provide an important update. We have reuploaded the consolidated financials, wherein there was a linking error in erstwhile file with respect to intercompany eliminations. That has been rectified in the revenue from operations and cost of materials consumed and operating expenses amounting to INR 636.56 crores, which has a compensating impact. Hence, there has not been any change in the profit and loss for the period, which was reported in the erstwhile financials. The same has also been rectified in the presentation. So we would request you to refer to the updated version of both consolidated results, as well as the investor presentation.
So now let me take you through the business. Since June, India has a steady drop in the COVID-19 cases and a tremendous increase in the immunization coverage. India has finally reached the milestone of 100 crore vaccine doses administered. With the relaxation of movement limitations, more exports, favorable financial and market circumstances and increased government capital spending, economic activity is steadily improving. Consumer and business confidence for the future is improving as well. Strong agriculture sector performance, a pickup in manufacturing activity and now even a recovery in contract and concerned services, all point to future development.
Regarding the infrastructure sector update, so as we all know, Prime Minister Narendra Modi, on independence day, has launched PM GatiShakti Master Plan for INR 1,00,00,000 crores projects for building holistic infrastructure in India. The project plans to add around 1 lakh kilometer road network to expand the national highways network in the country to around 2 lakh kilometers by the next 4 years. So the key benefits of GatiShakti projects are as under: The plan will aid in mapping of the current and planned connection initiatives. In addition, there will be great deal of transparency about how the country's many regions and industrial centers are connected, particularly in terms of last mile connection. Make In India will benefit tremendously from the comprehensive and integrated transportation connectivity plan that integrates various forms of transportation. It will assist India in becoming the world's business capital.
Then moving to the construction activities during the quarter. So construction activities have fallen in the first half of the current fiscal to around 21 kilometers per day compared to 22 kilometers per day in the same period last year and the peak of 25.7 kilometer per day in the same period in 2019. MORTH has constructed around 3,824 kilometers of national highways in the first half of FY '22 as compared to 3,950 kilometers in the corresponding period last year. Protracted rain in various parts of the country led to pressure on execution in the second quarter, followed by the second wave of COVID-19. MORTH awarded around 4,609 kilometers during this period as compared to 5,052 kilometers in the previous year. NHAI is also expected to be aggressive in the awarding activities for rest of the year to meet its initial target of 5,000 kilometers.
Then I would also like to cover upon the recent updates about the company. So I'm very delighted and glad to announce that the company has received a favorable judgment from Supreme Court of India, vide judgment dated 21st of September. So that has confirmed the appointment of Dilip Buildcon Limited in consortium with VPR Mining & Infrastructure Private as the mine developer and operator by PSPCL, that is Punjab State Power Corporation Limited at Pachhwara Coal Block Mine. So the total contract value for the tender is around INR 32,000 crores, which is exclusive of taxes to be receivable over the period of 55 years of the contract.
Then there was an incident at one of our projects, right? So with that incident, NHAI has now completed its investigation and there was a temporary restriction put up on the company for bidding the fresh NHAI projects. So that restriction has now been removed from October 12, 2021. Also, NHAI required the company to deposit a financial penalty of INR 3 crores. So that has also been deposited within the stipulated time by NHAI. So therefore, now the company is eligible to participate into the fresh bids since October 12, 2021.
Further, we have received appointed dates for 3 of our projects during the quarter -- since the last quarter. So one is -- 2 projects are Bangalore-Malur and Malur-Bangarpet. Those are on Bangalore-Chennai Expressway. And the third project is Dhrol Bhadra Highways Private Limited, which is in the state of Gujarat. So 3 projects have commenced during the quarter. And apart from this, one HAM project, which the company had one in early -- in the month of March.
So for that project also, LoA has been issued by NHAI. That is also on Bangalore-Chennai Expressway. So the stretch is Bangarupalem-Gudipala, having order worth of INR 1,060 crore. And during the -- since the last quarter, we have also received financial closures for 4 HAM SPVs, namely Bangalore-Malur, Malur-Bangarpet, Dhrol Bhadra Highways and Puducherry- Poondiyankuppam in the state of Tamil Nadu. Apart from these, only 3 projects are there for which the financial closure confirmation is awaited from NHAI.
So 2 of them, we have already received the final sanction. And the final one, for which the LoA has just received, the concession is yet to be signed. So we are very much hopeful that we'll be completing on the financial closures within the schedule time.
Apart from this, we have also completed 2 of our projects, which were awarded in 2018. So that is Sangli-Solapur Package II. The stretch is from Borgaon to Watambare. So that project has been completed. And the other project is in the state of Jharkhand, that is Gorhar to Khairatunda. So it is part of NH 2. So that project has also been completed.
So now let us move to the financial performance of the company during the quarter. So our revenues have increased by 12% during quarter 2 on a Y-o-Y basis. EBITDA has decreased by 26% during Q2 FY '22. So the primary reason for drop in EBITDA is that, as we all know that as a part of the business strategy of the company, where the company has been deploying its own manpower and equipment, the company used to complete its projects before the scheduled completion dates. So like if a project is of 24 months, we used to complete the projects within the timeframe of 18 to 20 months. But unfortunately, because of the 2 waves of COVID and the COVID being followed by the monsoon season, so that had elongated the construction period for all our projects. And despite there has been an extension of time for this by NHAI for 6 months invariably in all the projects. So effectively, our construction period has increased from erstwhile 18 to 20 months to 27 to 30 months.
So this increase in the construction period has impacted the profitability of the company because the company had to incur more fixed costs while the revenue remained constant. So that is the reason there is an impact on the EBITDA margins of the company. Apart from this, as all of us know, like the entire country is struggling with the steep hike in the material prices, so all the key material prices like cement, bitumen, diesel, steel, so there has been a steep hike.
Almost, it has gone up -- in some of the items, the price increase is more than 100% like bitumen and all. And otherwise, in diesel and steel also, there is a steep hike of around 50% to 60% price hike has taken place. So this has again impacted the profitability and the margins of the company because the projects which are getting completed during this particular phase were initiated somewhere in 2018, '19. And those were towards the completion, so while these projects were getting executed, so definitely, the realization is as per the old prices, whereas your cost is as per the current prices. So that has been one of the reasons, which has again impacted the EBITDA margins.
Then the company -- as we all know, company is also doing coal mining. So we have coal mining business, which contributes around 10% to 15% of our overall revenue. So in coal business also like approximately 45% to 50% impact is because of the diesel prices because there's no raw material as such, but the primary raw material is the diesel, which is required to run the equipments. So because of the hike in the diesel prices, again, the margins have been impacted in the mining business.
And other critical factor has been like 2 large-sized projects, which were like in the bank of River Ganga, that is Narenpur Purnea and Bhadbhut projects and also one Sahibganj project. So these projects, which are near in the -- Bhadbhut project is near Narmada River and other 2 are near Ganga River. So these projects could not take off during this second wave of COVID, followed by the monsoon period. So effectively, we lost critical 6 months for these projects because of which the revenue could not offtake in these projects. And that has again impacted the recovery of the fixed overheads for the company. So these were the primary reasons. So that was an important update, which I wanted to provide on the EBITDA margins. Then consequent to the drop in EBITDA margins, so the profit of the company has also declined.
Now let me take you through some of the important items of the balance sheet of the company. Expenditure on fixed assets is around INR 29 crores, which has been incurred in quarter 2 of FY '22. Our loans -- there has been a decrease in loans given by the company, so mainly on account of loans given to the SPVs created for the HAM projects. Net debt to equity ratio has decreased to 0.73 in Q2 FY '22, vis-a-vis 0.76, which existed in Q1 FY '22. Working capital days is at par at around 126 -- 127 days as of 30th September '21, vis-a-vis 126 days, which was as of 30th June 2021. So these were the important updates about the balance sheet numbers.
Apart from this, on the consolidated financials also, we would just like to update, like during the quarter -- because, as we all know that we had divested a portfolio of 24 assets to the Shrem group. So out of those 24 assets, 8 subsidiaries have been hived off -- the remaining 8 subsidiaries, which were yet to be hived off, those have been hived off in Q2 FY '22. And Shrem is not consolidated during the half year ended 30th September 2021. And these were, however, getting consolidated till the previous quarter, that is 30th June 2021 as per the Ind AS 110. That is -- which deals with the consolidated financial statements. Its impact on the consolidated profit and loss and the consolidated balance sheet has been as follows.
Our consolidated borrowings have reduced by around INR 3,340 crores. And accumulated profit till 31st March '21 for the said 8 subsidiaries, which were considered earlier, are reversed in Q2 FY '22 and H1 FY '22 because of the said stake sale. And this has been shown as exceptional losses in the consolidated profit and loss account amounting to INR 185 crores during quarter 2 FY '22. The losses are purely noncash in nature because those were with respect to the SPVs getting consolidated curtailing -- which were -- stakes had not taken place. The profits for the 8 subsidiaries for Q1 was around INR 169 crores, which was consolidated in the financials of Q1 FY '22, which has also been reversed during the Q2 FY '22. Therefore, the segment PBIT of Road Infrastructure Maintenance & Toll Operations segment was negative at INR 170 crores during Q2 FY '22, vis-a-vis positive of INR 165 crores for Q1 FY '22 and INR 136 crores for Q2 FY '21. So this was the update on the financial side.
So now we can open the floor for the question and answers.
Questions and Answers:
Operator(Operator Instructions) The first question is from the line of Mohit Kumar from DAM Capital.
Mohit Kumar - DAM Capital Advisors Limited, Research Division - Research Analyst
So first question is on the EBITDA margin. The EBITDA margin, of course, you explained. But the correction is too sharp, we used to do 15%, 16%, 17%-odd, now we are doing 11%. And the -- as far as the top line is concerned, top line has only grown. So this number is too, too sharp. Isn't our -- most of the contracts have prices and clauses, which protects us from the increase in steel, bitumen, blah, blah, blah? Can you just reconfirm the -- your -- do you have any portion of -- so what is your proportion of fixed-price contracts in our entire order book? That's the first question.
Rahul Dhandhania -
Thanks for the question. So I would like to just clarify that, like the EPC contract that we have, so there is no price, there is no clause under those EPC contracts. But the variation clause takes care of only 50% to 60% of the inflation, which is being passed to the contractor within the period. So effectively, the entire cost is not getting recovered through the price inflation clause, which is there in the EPC contract.
And secondly, like, while the company is doing EPC projects, company is also doing EPC for the HAM projects, which has been undertaken by the company. And as you know, HAM projects, as per the concession agreement, only 40% of the inflation, which is approved during the construction period, is passed on by NHAI, and remaining 60% of the inflation on the balance, 60% of the bid project cost, that continues to accrue, and that is finally getting added to the final completion cost, and it is realized in form of annuities over the operations figure during the operational period.
So that is the reason. And see, this has been an extraordinary hike in the material prices. So therefore, the initial provisions of inflation, which was factored in the EPC pricing, so those -- so these kind of price increase has surpassed all the estimates.
So that is the reason there has been a pressure on the overall margins of the company because we are not able to recover the full amount of inflation, which the company has suffered because of the steep hike in these material prices. And as I also mentioned, like in my opening remarks, that the construction period of the projects have significantly increased if we consider our company, in case of our company, where the company used to complete the projects in 18 to 20 months, and now the projects are getting extended to 27 to 30 months of completion.
So all these factors have resulted into additional fixed costs for the company. So -- and also, when we were doing the projects in 18 to 20 months, we were also earning early completion bonuses. So that is an important aspect for you to consider. So now there is no early completion bonus available for the company. Though NHAI has given the extension of time, but even if you are completing before time within the extended period, we are not getting bonus from the NHAI.
So earlier, the EBITDA margins which the company used to demonstrate around 17% to 18%. So that was around -- that was along with the early completion bonuses also. So these all have been the consolidated reasons why there has been a pressure on the EBITDA margins of the company.
Mohit Kumar - DAM Capital Advisors Limited, Research Division - Research Analyst
And sir, the mining contract, do we have price escalation clause? Or do you -- it is going to affect our margin effectively -- margin adversely?
Rahul Dhandhania -
See, the mining project also have price escalation clause -- escalation clause in the contract, and it contributed to around [45%] to 50% of the project cost in the mining. But what happens when this kind of sudden spike happens in the diesel price, that is again not entirely reimbursed to the price escalation clause. And you cannot assume and you cannot expect while bidding also this kind of steep hikes. That contact has the price escalation clause.
Mohit Kumar - DAM Capital Advisors Limited, Research Division - Research Analyst
Lastly, sir, (foreign language) FY '22, FY '23 (foreign language) FY '23, '24, given the current order book, is this the new normal, the margin which you have around 11% to 13%? Or do you think it can go back to 15%, 16% at least?
Rahul Dhandhania -
So what you have mentioned, it will go back to the 14% to 15% range in the market. 14% to 15% will be the new normal as compared to 17%, 18% earlier.
Operator
The next question is from the line of Abhishek Jain from Arihant Capital Markets.
Abhishek Jain -
Sorry, actually I just got disconnected, so can you throw some light on what will be the steady state margin? Because I just joined right now, apologies, if I'm repetitive right now. And second thing, are we seeing -- because of this demerger, which you're talking about, 8 subsidiaries right now, 24 (technical difficulty). So do you see some kind of revenue guidance going to be come down this year, you have given earlier?
Rahul Dhandhania -
So we have mentioned that the steady margin will be in the range of 14% to 15% for the company in the near future. And answer to your second question, this sale of 8 subsidiary doesn't -- it is not included in the revenue guidance because it was already divested to the Shrem. So revenue guidance remains same.
Abhishek Jain -
And sir, last question, is there any -- because of this one-off fee you have taken, also as (inaudible), do you see any impact on the rating agency side right now?
Rahul Dhandhania -
Abhishek ji, this is not one-off, this is as per the Ind AS and we were holding the 100% -- in the range of 51% to 100% in the subsidiaries. So as per the Ind AS consolidated financial statement, we have to consolidate the subsidiaries in our consolidated financial statements. But when we sell the stake and stake is transferred legally, then this whatever accumulated profit we have consolidated due to the Ind AS has to be removed from the consolidated financial statements.
Operator
The next question is from the line of Shravan Shah from Dolat Capital Markets.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Sir, just continuing, as you said that 14%, 15% will be normal, now the run rate in terms of the EBITDA margin. So in the second half also, we expect a 14%, 15% margin in the second half of this year?
Rahul Dhandhania -
Yes, Shravan, yes, we are expecting the same in the range of 14% to 15%.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay. And sir, in terms of the -- if you can once again repeat in terms of the revenue guidance for this year and the order inflow guidance. I think we haven't received anything till now. So what's the guidance for this year and maybe if possible on the revenue and inflow for the next year, what's the broad thoughts on that?
Rahul Dhandhania -
So Shravan ji, the revenue guidance, which we have given is in the range of the INR 9,500 crores to INR 10,000 crores for the full year, that is the first thing. Second thing, EBITDA margin will be in the range of 14% to 15%. And the third thing you have mentioned, the debt cash flow. So what we have told earlier in the last call also, we will be reducing the debt by around INR 500 crores from the March '21 numbers.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay. And order inflow for this year?
Rahul Dhandhania -
Order inflow will be INR 8,000 crores to INR 10,000 crores for the rest half.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay, INR 8,000 crores to INR 10,000 crores. And in terms of the -- broadly next year also, we can see a 10%, 15% revenue growth?
Rahul Dhandhania -
So it is early. It is too early to tell about the revenue guidance for the next year. You wait for that till Q3. In the Q3, we can see some -- we can throw some light on this.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay. Sir, now coming to the HAM part. So if I just look at the numbers, there, our equity requirement has increased versus the last quarter, what we mentioned, INR 289 crore, the equity requirement in HAM plus mining has increasing -- HAM, INR 160-odd crore has increased. Also, we stopped the breakup between 12 old HAM, 5 and the 6 HAM, we combine everything in '23. So why the equity requirement has increased? And if possible, in which HAM, it has increased? And is it possible to give the same breakup what we have given in the last presentation, 1Q? So that's the first question. And second is in terms of the Cube deal where we were expecting that pie HAM, that INR 550-odd crores to be received this year and [INR 1,100 crores] next year. So is it -- remains the same or any changes in that?
Rahul Dhandhania -
Shravan ji, just to answer your question point by point. So the reason why we have consolidated because now we have the financial process in place for all the SPVs. So that is why we have consolidated all the numbers. Earlier, why we had given a bifurcation because that time, certain projects are under financial closures. So that time, that was an optimate estimate of the equity, not the full estimate of the equity. So based on the financial closures and the final equity number, which has been updated as -- which has been finally arrived at for the sanction of the project lenders, the equity has been updated in all the projects. And further in the erstwhile projects also, because of the delays, there has been some increase in -- nominal increase in the equity requirement. So that has also been updated. So that is the reason you see there an increase in overall equity by around INR 160 crores.
Regarding the Cube deal, so like as you know, we had signed a deal with Cube Highways for the 5 assets. So out of the 5 assets 3 -- one asset has already achieved the CoD in September 2021, and 2 assets, we are expecting the CoD in November 2021. So again 3 assets, we will be -- we are expecting the consideration now. And during this month, we have already received part consideration from Cube Highways, amounting to around INR 165 crores towards the retirement of the unsecured loan extended by DBL in the 3 SPVs, which are nearing completion. So Cube Highways, now the first closing is expected to happen in the early December, where we'll be transferring the 49% stake to Cube Highways in these 3 SPVs, which are now getting completed. And the remaining 51% stake will be transferred in the month of March for one SPV and in the month of May for the other 2 SPVs. So likewise, these 3 projects will be completed. Rest of the 2 projects, the CoDs are expected somewhere around March 2022. So those closings pertaining to 2 SPVs will be happening at that point of time.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
So broadly this year, how much we will be receiving from Cube?
Rahul Dhandhania -
So this year, we are expecting around INR 300 crores in close from Cube Highways in this financial year and some INR 150 crores â INR 140 crores, INR 150-odd crores in the subsequent financial years. Subsequent financial, it will be higher, total will be around INR 700 crores or INR 725 crores. So remaining money will come in the next financial year for the Cube Highways.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay, sir. [INR 425 crore] in the next year. And any update when the remaining 12 HAM, where we are seeing INR 2,500 crores to be received, and INR 1,000 crore this year and the INR 1,500 crores next year? So what's the stage or at what stage are the discussion? Anything if you want to update on that?
Rahul Dhandhania -
Yes, yes, sure. So for the balance 7 assets. As you know, like we had said, we will be monetizing those assets. So the company has reviewed the overall situation. And the management has decided -- see, our future cost of monetization should not be done through a bilateral sale basis on the under construction projects.
So what we have decided is that post-completion, we should form our own InvIT and we should do the monetization through the InvIT because DBL as a EPC company, we also have a strong legacy of doing the O&M activities for these projects.
So in the overall framework and with respect to the pricing and also the kind of debt pricing which is available in the market for the completed HAM projects, so this endeavor, we have been able to refinance one of our completed HAM projects at a very competitive price. So we are trying to optimize the equity valuation of these SPVs. And also there is a benefit of completion costs also coming in these SPVs. So a higher equity valuation can be realized through the investment. So this is the book which the company has decided to adopt for the future monetization of the HAM projects.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Sir, last 2 questions. First is in terms of the CapEx. Last time you said that we will not be crossing INR 100 crores for this year. In cash flow, I can see in the 6 months, we have done already INR 107-odd crores. So what's the guidance for full year CapEx?
Rahul Dhandhania -
Shravan ji, as earlier also mentioned, there were the -- some other commitments, which were from the last year. So INR 30 crores, INR 40 crores were from the last year, that was the commitment. And the second thing, in this, some line items INR 10 crores, INR 15 crores comes through the regular items like small equipment. That also shown as a capital expenditure, this office equipment or all these kind of things. So that is why -- but for this year, we will not cross the INR 100 crores, excluding INR 40 crores from the previous commitment.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Okay. And couple of numbers in terms of the mobilization advance, retention money, unbilled revenue as on September?
Rahul Dhandhania -
So retention money is around INR 800 crores, including current and noncurrent. And mobilization advance is around INR 996 crore, including current and noncurrent, and unbilled revenue is around INR 800 crores.
Shravan Shah - Dolat Capital Market Private Limited, Research Division - VP of Research
Sorry, sorry, unbilled revenue, how much?
Rahul Dhandhania -
Around INR 800 crores.
Operator
The next question is from the line of Prem Khurana from Anand Rathi.
Prem Khurana - Anand Rathi Financial Services Limited, Research Division - Research Analyst
Sir, to begin with, I essentially want to understand on this DBL Infra transaction that we've done during the quarter. So I think the trans at 49% stake in 5 SPVs and then 70% in the 6, which essentially is also reflecting the power of your balance sheet because the investment seems to have come down. And then your loans have come down because you would have transferred the investment deals to DBL Infra. If you could please share the number that you would have received towards this transfer and also, I mean, if you could help us understand, why is it that, I mean, even after this receipt from your subsidiary your stand-alone net debt has gone down by only around INR 130-odd crores? Because I'm assuming, I mean, your consideration, because when I look at these reduction in investment and loans, these 2 [NHAI], if we work out, it'll be almost around INR 520-odd crore and despite that, the reduction in net debt is only INR 130 crores in the stand-alone entity?
Rahul Dhandhania -
Yes. So regarding this DBL Infra, so DBL Infrastructure is a 100% subsidiary, which is 100% subsidiary we have built on benefit. So the idea of this transaction was that, like, in DBL Infra, as I mentioned, like going forward, we are not envisaging the asset sale, which was -- which the company used to do, like, during construction we used to enter into a transaction and undertake the bilateral sale of the assets. So now we are planning to monetize the asset through InvIT post the completion. So that is the reason we have made a tie-up with CPPIB, that is Canadian Pension Plan -- Canada Pension Plan Investment Board, CPPIB, for an aggregate amount of INR 995 crores to fund the equity requirement of the company, wherein the CPPIB has done due diligence on certain identified assets. And based on their due diligence, they have approved this amount of INR 995 crores, which can be drawn in several and multiple tranches from CPPIB.
And this money is being drawn at DPL Infra and DBL Infra is utilizing this money to basically have the equity stake in the identified HAM SPVs and also the money can be invested in the future HAM SPVs, which is being undertaken by the DBL Group. And also whatever unsecured loan, which DBL had extended to the various SPVs, so that is being replaced by the fixed loan of DBL Infra, which is invested out of the proceeds from the NCDs. And this facility is like in the nature of a revolving facility as per our agreement with -- arrangement with CPPIB, that like, going forward, we can like repay the facility and again, the facility can be made available for the new projects because HAM is an integral part of the business activity of the company. And going forward, also, the company would be undertaking HAM projects. So it needs equity requirement. And also, this facility is for a tenure of 5 years, which comes up to a moratorium of 2 years towards the interest and 3 years for the principal retained. And we also have option of prepayment for this particular facility.
So that is the reason this tie-up at DBL Infra as this structure has been created. And with this holding in DBL Infra, DBL Infra also gets the qualification for participating into the new projects going forward. So this will become an investment vehicle for the company going forward. So that is the plan why this account expires in (technical difficulty). And we are very proud that CPPIB has such a global name, Canadian Pension Plan has partnered with us, and they have expressed and shown their confidence in the company. So that is, again, a very -- we must say that it is a remarkable deal for the company which the company has undertaken.
Prem Khurana - Anand Rathi Financial Services Limited, Research Division - Research Analyst
Sure. Is it possible to share how much did we receive for the transfer that we did, as in, essentially, the stake that you transferred? And when you give us this equity requirement, I think you still seem to be taking into account that these SPVs are owned by us, but given the fact that, I mean, the stake has been transferred to DBL Infra and you have CPPIB as a partner. So I was under the impression that you would get a part of this money come from your partner as well. So if you could help us understand how much did we receive for the transfer, and why is it not reflecting as a part of reduction in stand-alone debt? And also, how much of incremental that you need to do would be essentially done by the partner and the balance would come to us?
Rahul Dhandhania -
Yes. So it's like the partnership is because CPPIB has subscribed to the NCDs, which have been issued by DBL Infra, so it's not a pure equity which has happened with CPPIB. So DBL Infra continues to be the 100% subsidiary of DBL. So just that is the split of the ownership between DBL and DBL Infra assets, where 51% in the (inaudible) SPVs continues to be on the DBL and 49% is being now owned by DBL Infra. So in the last quarter, we had done the first tranche of issuance, so an amount of around INR 580-odd crores was raised at DBL Infra level, out of which around INR 500 crores has been paid to DBL towards acquisition of equity stake, 49% equity stake in the identified 6 SPVs and also taking over the unsecured loans in those 6 SPVs that was initially extended by DBL. So this money has come to DBL.
So entire amount has not been like -- it does not reflect in the decrease in debt because of obvious reasons like 130 -- borrowings have come down by INR 130 crores. But at the same time, because of the increase in the moving average price of the materials, so there has been an increase in -- there has been an investment in the working capital by the company. And also, company has made fresh and equity investment in the SPVs of around INR 70 crores to INR 80 crores. So that is the reason. So I think in the coming quarters, when there is a reversal in the working capital, then that reflection will take place.
Prem Khurana - Anand Rathi Financial Services Limited, Research Division - Research Analyst
And just one last from my end on this increase in your equity requirement for hybrids almost of INR 160 crores. What could you attribute this to? I mean would you attribute this to, I mean, the banks going little conservative in terms of funding and which is slightly seeking to kind of invest more from your pocket? Or is it taken a change in bid project costs, because I'm assuming, I mean, they would have at least taken some time to be able to get a point in each bid, where a bid project cost would have changed because of inflation. And therefore, the funding proportion, even if it was to remain the same, but then obviously, I mean, since bid project costs have changed, you would have -- would be required to put in little extra from your pocket. And how do you see this increase in equity requirement to kind of come to impact your equity for these assets?
Rahul Dhandhania -
Could you repeat your question once again?
Prem Khurana - Anand Rathi Financial Services Limited, Research Division - Research Analyst
So I was asking, when I look at your equity requirement for hybrid, right, it has gone up by INR 160-odd crores. So this rise could be because of 2 reasons. One is, let's say, I mean, initially, you were able to get funding at, let's say, 25%, 75% equity debt ratio and suddenly banks want you to put in 30% (inaudible) and 70% is coming from banks. And the other reason could be because bid project cost is adjusted to the inflation number, and which is where, when you bid for the project that was INR 100 crores and it has become INR 110 crores. And even if it is 25% equity that you need to commit, your equity requirement goes up. So this INR 160 crores would be because of the first reason, wherein the banks are asking you to put in more? Or is it because of the change in the bid project cost and wherein you are required to put in more now?
Rahul Dhandhania -
It is not because of the change in the bid project cost. So that is totally different. It is like it is -- as I explained to Shravan also. It is a mixed affair because it is a combination because of new projects, the debt equity ratio -- some projects we were able to do 80-20, now it is 75-25, it is because of that. And secondly, in the projects because of the delay in completion because of the extended COVID time. So there has been some extra requirement of equity in projects.
Prem Khurana - Anand Rathi Financial Services Limited, Research Division - Research Analyst
Sure. And how would this change our equity IRRs for these projects?
Rahul Dhandhania -
There could be around 100 basis point impact on the equity IRR on an overall basis.
Operator
The next question is from the line of Manish Goyal from Enam Holdings.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
Yes. Continuing on the equity investments. So this 12 HAM projects which we are looking to divest, what is the equity investment which will be going in for which we will realize INR 2,500 crores?
Rahul Dhandhania -
So Manish ji, the investment in these 12 HAM projects will be roughly around INR 1,675-odd crores. So that is the range of investment in the 12 projects. And against that, once we do the complete stake sale, because out of the 12 projects, 5 projects are being divested to Cube Highways for which the expected consideration is around -- in excess of INR 700 crores. And for the balance 7 projects, we would be expecting a consideration, so the total liquidity investment in the balance 7 projects will be somewhere around INR 1,200 crores to INR 1,250-odd crores, for which the realization could be around INR 2,500 crores to INR 3,000 crores.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
So for these 7 HAM projects, you're saying equity investment will be INR 1,250 crores.
Rahul Dhandhania -
Yes, INR 1,250-odd crores.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
Sorry?
Rahul Dhandhania -
Yes, INR 1,250-odd crores.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
Yes. Yes. So both put together, against this INR 1,675 crores of investment in 12 HAM projects, you are expecting realization of more than INR 2,500 crores?
Rahul Dhandhania -
Yes.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
Okay. And just to clarify on the DBL thing, DBL Infra, so we are transferring 6 HAM SPVs -- 49% stake in these 6 HAM SPVs to DBL Infra.
Rahul Dhandhania -
Yes.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
And CPPIB has invested INR 995 crores through NCD in this DBL Infra directly.
Rahul Dhandhania -
The total commitment is for INR 995 crores. So out of which we have drawn the -- yes, so we have option of drawing down this money in multiple tranches. We drew the first tranche in the last quarter of around INR 580 crores.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
Okay. Okay. And by when do you expect to launch the InvIT for these 7 HAM projects?
Rahul Dhandhania -
By the end of this financial year, so that is our target to launch InvIT because the assets are now getting completed progressively. So out of the assets available with us, 2 assets have already achieved the CoD. So basis that, we'll be creating a booking for flipping the accessibility of the platform.
Manish Goyal - Enam Holdings Pvt. Ltd - Investment Analyst
But ideally, before launching InvIT, we need to complete all the projects, right?
Rahul Dhandhania -
So that is the ideal situation because then under-construction projects can be only done in an unlisted InvIT. So the idea is not to go ahead with unlisted InvIT as of now.
Operator
The next question is from the line of Anupam Gupta from IIFL.
Anupam Gupta - IIFL Research - VP
A few questions from my side. Firstly, why is there no discussion in the presentation for the CPPIB investment in DBL Infra? There's absolutely nothing in the presentation that talked about it, despite you drawing that amount there. So that is one which is not a type of question, but more of our feedback. Secondly, what is the interest rate which you'll be paying on that NCD?
Rahul Dhandhania -
See, this DBL Infra transaction, this was already in the public domain because this was a listed issuance done by the DBL Infra. So that is the reason it was not covered specifically in the presentation. And secondly, with respect to the tenor and interest rate, so initially, as I mentioned, there's a 2 year moratorium for this particular facility, and the cash coupon is 9% payable after 2 years. And overall basis, around 12.5% is the interest rate on a [PACM] basis, which is payable to the investor.
Anupam Gupta - IIFL Research - VP
Okay. And now that your equity investment, which you are doing effectively, I'm assuming CPPIB will not convert into equity stake at all, right? This will continue to remain as a NCD.
Rahul Dhandhania -
Yes, yes, it is going to be -- it is going to remain as the NCD, but we have an option of prepayment also for these entities up to 12 months.
Anupam Gupta - IIFL Research - VP
Right. So from your reported number, it will be very tough to actually make out the actual debt on the books because ideally the debt on the overall book should be looked at stand-alone debt plus the debt which is there in DBL Infra as an NCD. So that's your real debt actually if you look at which -- so I would really prefer if you can disclose that in your presentations every quarter, because that would give a better picture of overall picture. And secondly, in terms of your revenue guidance and your margins, if I see what you're saying for the second half, you are effectively saying there will be no Y-o-Y growth in revenues for the second half. And similarly, on the margins, the margins which you have again lowered to 14% to 15% basically assumes that overall execution continues to remain slow, which should ideally mean not the case in the second half, given that everything has normalized for most other companies. So I'm not able to understand why this revenue and margin guidance has been cut, going by your explanations. So if you can explain that a bit better.
Rahul Dhandhania -
So Anupam ji, revenue guidance, which we have given in the last quarter, it was in the range of INR 9,500 crores to INR 10,000 crores, so we are keeping that guidance, first thing. Second thing that margin guidance was also given in that range of 14% to 15% in the last quarter. So there is no cut in the revenue guidance as well as the margin guidance as compared with the previous quarter.
Anupam Gupta - IIFL Research - VP
But let's say, assuming things are normal in the second half in terms of execution, why should margins be lower?
Rahul Dhandhania -
Margin because this is impacted by the extended period of the COVID where we are incurring the fixed overhead. We have mentioned the various reasons. So I'm just now highlighting the reasons. First is the non-receipt of the early completion bonus because now we will be completing on the time during the extended period of time, the projects which we have won in that 2018 now it is completed during the extended period. So there is -- we are increasing the additional fixed overhead. Then there is the price increase, which is impacting our margin. So these 3 put together and other 2 things are also mentioned, the coal projects, where the price escalation is 100% pass-through to us because this is the formula. So this is why the margin guidance, earlier also it was given in the 14% to 15% range, and the same has been continued for the rest of the half year.
Operator
The next question is from the line of Parikshit Kandpal from HDFC Securities.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
My first question is on inventory. Again, the inventory has gone up in this quarter. So as you highlighted earlier in the call that we are not receiving any bonuses from NHAI, also the execution that is getting extended. So why is this inventory not coming down? Earlier we used to accelerate the inventory to -- for the execution process to get bonuses. And I still can't understand why the inventory is not reducing here.
Rahul Dhandhania -
Parikshit ji, when the execution will pick up, you will see that now that in Q3, the inventory will go down because there is another impact is the actually moving average price of the inventories increasing up. Even though quantity is not increasing due to the price up, there is an increase in the inventory value, but you will see that surely, as earlier also, we have mentioned that the reversal in the working capital will happen during the Q3 and Q4, and we think the same thing will happen in Q3 and Q4.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Okay. Okay. The second question, you said that by year end, you'll try to have a unlisted InvIT in place -- private unlisted InvIT in place. That means that a lot of work has already gone into identifying a partner or an investor because we hardly have 3 to 4 months left. So at what stage of evolution we are there in unlisted InvIT? Are we already finalized on an investor trying the term set or we are very close to that? If you can give some sense on the InvIT.
Rahul Dhandhania -
Parikshit ji, first of all, I would like to clarify, see, this -- it's not private unlisted, it will be private listed InvIT. And secondly, we are already now in touch with the investors, and we are trying to firm up the commercials and the term set with the investor. So that work has been done towards that. And in fact, as I mentioned, like CPPIB has also done due diligence on 7 of our assets. So that also gives a larger comfort to the investor community also, such a good brand name (inaudible). So on that, I think we are quite hopeful that we should be able to catch up with the timelines, which we have mentioned.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Sir, my question was have you finalized or singled out an investor already, like we have finalized that is going to come now. I'm not asking you to give names, but have we already proceeded and entered into exclusivity with an investors and now only the commercials are left to be decided?
Rahul Dhandhania -
No. It is under -- still under discussion, Parikshit. So...
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
With multiple investors?
Rahul Dhandhania -
Yes, yes, because the deal size is big.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
So it could be multiple investors who can come in, right? It's not that single investor.
Rahul Dhandhania -
Yes, yes, yes, definitely.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Okay. Just last question, sir, on this slide on the divestment of road assets on 24. So you have mentioned INR 1,500 crores in '23 and INR 1,000 crores in '22. But you did, in the call, mention that there is some slippage from the Cube into the next year. So how -- is there any revision in the numbers now on this inflow for INR 1,000 crores and INR 1,500 crores for FY '22, '23?
Rahul Dhandhania -
See, the overall number basis like -- so you have to see the numbers along with the CPPIB. So like last quarter, we were also looking for a bilateral divestment, but now the strategy is that we will be divesting only through the InvIT route. So that is the reason we have now made the interim management by tying up INR 995-odd crores with CPPIB. So if you club both the deals, Shrem deal -- Cube deal as well as CPPIB deal, then the INR 1,000 crores number, which has been anticipated for this particular financial year, that would be in place. And the subsequent financial year, we will have completion all the balance 7 HAM projects, which have not been divested, for which firm agreement -- definitely the agreements have been placed. So those would be divested through the InvIT platform, and that realization will come from the 7 -- balance 7 assets.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Okay. On this INR 2,500 crores of divestment consideration is on an equity base of INR 1,675 crores, right, including the Cube's 5 assets.
Rahul Dhandhania -
Yes, yes, yes, correct.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Okay. Because I thought the CPPIB money will qualify as NCD or a debt. So I don't think it exactly resembles the divestment consideration because that is a liability. So it's more coming back to INR 1,000 crores, I assume (inaudible).
Rahul Dhandhania -
So that's right. That's what I said. See, because ultimately the equity money is required by the company to meet the upcoming equity requirement. So that is the reason we have done this interim management.
Parikshit D. Kandpal - HDFC Securities Limited, Research Division - Research Analyst
Okay. So you're just replacing it, but trying to explain it more like that is a source of fund and utilization of funds. Okay. Got it. Okay, sir. That's all from my side and all the best.
Rahul Dhandhania -
Okay, thank you.
Operator
The next question is from the line of Jiten Rushi from Axis Capital.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
Sir, coming back to the CPPIB deal, so as you said, we have taken INR 580 crores and probably, additionally, we will get single quotes from Cube Highways. But once we get the money from Cube Highway by end of next year, so are we looking to repay the debt we have drawn down from CPPIB or we will still draw the full INR 995 crores next year -- by the end of this year or early next year?
Rahul Dhandhania -
Jiten ji, as you know, the last financial year, we had backed 11 new HAM projects, so we have equity pipeline for that. So the considerations would be ideally met for meeting the equity commitment in the upcoming projects. And similarly, the balance amount also will be drawn progressively from the CPPIB and ultimately this will be retired out of the stake sale of the balance 7 assets through the InvIT route.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
So basically, for 51%, DBL will invest and 49% DBL Infra will draw down from CPPIB for the...
Rahul Dhandhania -
Not necessarily. If we have the flexibility, we can invest more than 49% also in the new projects. So it's not restricted to 49% specifically in a particular project. So we can draw down and invest in the new projects to the extent which is to the -- to our convenience basically.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
But shareholding agreement, 51%-49% and DBL will be 100% stake in DBL Infra.
Rahul Dhandhania -
Not necessarily. As far as the lending terms, we are not -- there's no speculation that DBL has to maintain 51%. Both DBL along with its associate, which is DBL Infra, we can jointly hold the entire shareholding investments.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
So this approval has been taken from NHAI?
Rahul Dhandhania -
NHAI approval is not required because concession agreement, acquisition permits, holding of investment of equity by the original bidder along with its associates.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
Okay. Got it. And sir, on the -- as you said, first 2 years, we have been moratorium period so you will not be paying interest. And probably in last 3 years, you'll be paying interest at the rate of 9% or you said some 12%. So can you just clarify? I missed out on that, sir.
Rahul Dhandhania -
Yes. So after 2 years, there is a limit of cash coupon, which is payable at the rate of 9%. And finally, the IRR of the investor would be 12.5% on a [PAPM] basis, so -- which is compensated by way of the redemption premiums at the end of the tenor.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
Okay. Okay. Redemption premium. Okay. Okay. So basically, principle can -- this money which you have raised, we can repay after one year. That is the option you have, right, flexibility there?
Rahul Dhandhania -
Part of the money can be repaid after one year.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
And sir, another question is like what is the debt repayment schedule for this year, FY '22, '23 and '24 at the stand-alone level, sir?
Rahul Dhandhania -
So our current maturities for the -- till September '22 for next year is around INR 750-odd crores. So typically, there will be a repayment of INR 750-odd crores during the next 12-month period.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
And that similar run rate we can expect?
Rahul Dhandhania -
Yes, yes, definitely.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
And sir, on the operating cash flow side, so what would be the OCF at the stand-alone level and consol, if you can guide for this year and next year because the working capital seems stretched, so whether we can see a positive operating cash flow this year or next year? Or how are we looking at it, sir?
Rahul Dhandhania -
So for the rest of the year, as we mentioned, 14% to 15% will be the EBITDA margin. So you can close that in your model. So you -- and there will be releasing the working capital also, it is somewhere 127 days, so it will reach to be around 100 days. So this would be releasing the working capital so that will be a positive cash flow by end of the financial year.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
For subsidiaries, it would be difficult to give the OCF because it is still not operational, what I understand, right, sir?
Rahul Dhandhania -
We're not carrying for the operating cash flow as we always tell that, that is for the divestment. So we don't take the OCF for this.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
And sir, on the CapEx front, as you said, only INR 100 crore this year, but probably now many of the other projects are getting appointed date of CY December or March. So what kind of CapEx we see next year because even the order inflow should go up in second half. So can you guide on the FY '23 and '24 CapEx?
Rahul Dhandhania -
It will be within that INR 8,000 crores to INR 10,000 crores in the next half too. So there will not be any additional CapEx because they are the projects which are getting completed, so this will be deployed to the new projects from the old projects, except if you get some special kinds of projects like we got earlier (inaudible). So there we can require some Capex, but right now, this is not the plan.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
So probably INR 40 crores, INR 50 crores recurring maintenance CapEx and some additional, if at all?
Rahul Dhandhania -
Yes.
Jiten Rushi - Axis Capital Limited, Research Division - Assistant VP of Power and Infra
And sir, one last question, in the order backlog, now what is the status of all the projects? All are moving projects or there are still -- any stuck or non-moving projects or slow-moving projects? Can you just highlight on that, sir?
Rahul Dhandhania -
All are the moving projects, there is nothing to mention. That is only the appointed dates are pending for the projects.
Operator
The next question is from the line of Teena Virmani from Kotak Securities.
Teena Virmani - Kotak Securities(Institutional Equities)-VP
My question is just a clarification on this DBL Infra SPV -- the SPV which are transferred to DBL Intra. Is it -- which SPVs are these? Are these the ones which are part of those 12 HAM projects which are to be divested or these are the ones which are recently awarded or will be getting awarded in future? Basically, the funding which is coming in the form of NCD from CPPIB, is it going to be used for the newer projects or for the existing portfolio of 12 HAM projects, which were initially part of the company?
Rahul Dhandhania -
So Teena, just to clarify this, so the funding is like on the basis of equity investment done by the company in these 10 underlying SPVs, out of which 6 SPVs are out of the 12 SPVs -- all 12 fees. And 4 SPVs are out of the 11 SPVs, for which we received appointed date in March 2021. So against this, on the basis of the equity investment already done by DBL, the line of credit has been sanctioned by CPPIB. But the money can be invested into the new projects also apart from these 10 SPVs. So that flexibility we have. One is that...
Teena Virmani - Kotak Securities(Institutional Equities)-VP
But it will be overall portfolio of HAM projects of DBL, except those 5 projects, which are divested to Cube.
Rahul Dhandhania -
Correct.
Teena Virmani - Kotak Securities(Institutional Equities)-VP
Okay. Okay. And why was -- basically, I just want to understand why was this transaction done? Why -- I mean, see, it could also have happened by divesting a stake to CPPIB and monetizing these assets in that way. So why this kind of structure is being adopted?
Rahul Dhandhania -
See, there are 2 reasons to it. One is that, as I clarified in my earlier part of the sessions also, that we have to now -- we have decided to set up our own InvIT. Okay? So why we are setting up our own InvIT, so that is the reason. For the interim, the company had also banked projects. So there was an interim requirement to meet the equity for these projects. So rather than selling the projects, we decided to hold the projects in our balance sheet. And because there has been a deterioration in terms of the reduction in the bank rates, so there has been an impact on the valuation of the assets. So that is the reason. It was not advisable that we do the divestment of the assets at this point of time. So that is the reason how the company has selected and opted for the InvIT route for the divestment at the appropriate time. So we had undertaken this transactio
