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00:00We're joined by Mr. Ashish Tomar, who's MD at EMS Limited, who joins us now.
00:04Welcome to the show, sir. My first question to you is that this particular letter of acceptance
00:09that you've received of 141 crore, give us a brief as to, you know, what is the execution order,
00:15execution timeline for the particular order, and are the margins in the similar range for this
00:21project as well? Yeah, good morning, Aima. Thank you for having me. Yeah, I think the margins would
00:28be in the similar range for this project, and the timeline for completion is around,
00:35that project needs to be completed in two years from date of award.
00:40All right, so two years is the execution period. Hi, Anushi joining in here. So,
00:43my next question is about the order book size. I want to understand what is your current order
00:48book size at, and what is the kind of order inflow growth that we expect for FY25?
00:53Yeah, good morning. Thank you. Our current order book stands at around 1600 crores,
01:02and we expect a good inflow of orders coming on, because there was some stagnation due to
01:12the ongoing central elections. The project evaluations and award work was on hold by
01:19the government departments for that period. Understood. Mr. Ashish, you know, the entire
01:25order book that is there, you know, at present, what is the execution timeline for the entire
01:29order book as a whole? Majority of that order book, around 80%, 80-90% would be completed in
01:38the next two years, and some in the coming year forward. All right, that's fair. Now,
01:44I want to understand more on your bid project. Now, you have about 4000 crore worth of projects
01:50in bid. I want to understand, usually, what's the kind of success ratio for the projects that you
01:55have mentioned, and what's the update on these projects as we speak? Yeah, we generally enjoy a
02:04success ratio of around 10-15%, and now the project's tender evaluations are under process,
02:14and we expect the results to be declared somewhere around in a couple of months.
02:21Understood. So, you know, considering the 10-15% success rate, you know, out of this bid pipeline
02:27of 4000 crore, I'm guessing the conversion would be around 400 crores. So, considering this, as
02:34well as, you know, your expectations from the entire financial year of 2025, where do you expect
02:39your order book to go to? We expect the year-on-year growth that we maintain of around
02:4925-30%. We expect to maintain that. All right, so 25-30% growth it is. I want to understand more
02:57on your one specific project that you had mentioned, that's the Ayodhya project, road construction
03:01there, and it's a fairly large project, 900 crore of order worth. What's the, you were waiting for
03:06the outcome on this, what's the current update on this project as we go ahead? Ma'am, we are still
03:12waiting for the evaluation to be completed. All right. Okay, understood. Mr. Ashish, you know,
03:17in terms of how your sales look like, sales as well as margins, you know, going forward,
03:23for FY25, how much of an upside do you see in terms of revenue as a, you know, as a percentage,
03:29and do you see any kind of uptick in the margins as well, and if yes, what will be the levers for
03:34this uptick? No, right now I can't predict anything specific, but the margins would remain
03:44in the same range that we have been maintaining for the last couple of years. And what about the
03:50revenue growth, that is expected to be in the 35-40% range as well for FY25?
03:57Certainly. All right, but also now I want to understand more on your segments, if you can give
04:02us a bifurcation between your segments, where are you seeing, in which segment you see the growth
04:07coming in from? I understand that there's a lot of more emphasis given on the sewage side of it,
04:12so if you can emphasize more on that. Yeah, primarily our business is about in water sector,
04:22almost 70% of that comes from the water sector, and in water sector also we specifically focus
04:28on the sewage sector. And going forward, we expect the majority of our business to come
04:35from that sector only, and we have bid for the 4000 crore bids that are in the pipeline,
04:46the majority of that are in the sewage sector. Understood. And, you know, what are the kind of
04:52CAPEX plans for the entire FY25, if you can quantify that for us, and where will the funding
04:59come from for the CAPEX that you'll be doing? No, there is no significant CAPEX plan for the FY25.
05:08Okay, and, you know, with respect to, you know, the elections, now that the election result has
05:13come out, do you see any kind of impact with respect to the kind of direct government tenders
05:18that you get, or do you expect no impact at all, or do you expect it to improve going further?
05:28We understand the number of tenders to improve rather than go down. Okay, and Mr. Ashish,
05:36what is the kind of budget expectations that you have from the upcoming budget?
05:41We expect improvements to the allocation in the sector that we work in, that is water
05:49majorly. Understood. And, you know, majority of your projects are government-funded,
05:54which ensures, you know, timely payment and no major delays. Can you give me a bifurcation of
06:00how much of it comes from government and non-government?
06:03Okay, understood. And, you know, your future projects are to be funded through financial
06:08closure and possible joint ventures, any kind of joint ventures that you're
06:12looking at currently, any update on that? Nothing right now. Okay, well, okay. You know,
06:22lastly, you know, in terms of how you're seeing your future projects,
06:27okay. Lastly, you know, in terms of how you're seeing the company down the line from a longer
06:34term perspective, if you can give us some updates as to what are the expectations that,
06:39you know, you have from a longer term perspective?
06:45Going forward, we see ourselves as an EPC player, executing projects ranging from water sector to
06:54civil infrastructure, such as roads and buildings.
06:57Understood. Well, Mr. Ajay, thank you so much for taking our time and speaking with us at NDTV Profit.