AVP Infracon — Q2 FY26 earnings call

Sir, actually, as far as this QIP is concerned, we just wanted to take a blanket approval for INR110 crores. It is not INR150 crores. So, we were planning to do a blanket approval, but we are not raising the funds altogether. I just want to clarify on that. And, sir, warrants, sir, has put in. ... we are going for around, I think, INR50 crores, INR60 crores we are just raising and raising because, sir, the company is growing. ... this is entirely going into the working capital.

Management clarified the actual QIP amount and its primary use for working capital, addressing investor concerns about dilution and capital strategy.

Asked by Ajinkya

H1 is 40% of what we do in H2, minimum 35%-40% of what we do in H2. ... we have around INR400 crores of unexecuted order book which will be completed in March. So, that there is no chance of dropping back in this. So, INR500 crores plus what we have already given guidance will be done.

Management expressed high confidence in achieving the full-year standalone revenue target of INR500 crores, explaining the H1/H2 revenue split and the executable order book.

Asked by Pranav Pal

Sir, first, I'll just do it point wise. First of all, this time our operating cash flow is a positive one. Stand alone is around INR10 crores and consolidation is INR17 crores. ... Trade receivables balance: INR85 crores. Major reason because in the month of September alone, sir, we did approx INR70 crores of billing. And we as an EPC contractor have a collection period of 90 to 120 days.

Management clarified that operating cash flow was positive and explained the increase in trade receivables as a result of high September billing and typical industry collection cycles, addressing a key operational concern.

Asked by Umang

Sir, normally this election year, what you mentioned, it will be a little bit slow. But what will happen in our case is normally all EPC companies, we will be facing a slowdown in the queue once after this financial year completes and all these revalidation of the funds and the budget preparation, either if it is going to be a central government or state government, whatever it is, it has to be done. ... But whatever work we have, we are at liberal to execute the works and there will not be any slowdown in those things.

Management acknowledged a potential slowdown in new tender announcements during the election period but assured that execution of existing projects would not be impacted, providing insight into a sector-specific risk.

Asked by Smit Jain

I understand that solar EPC business since we have cut throat competition and this is not industry where we get the same margin where we go in the role EPC or other things, but we need some – we thought we need some diversification and also we need some top line increase in our company. So we need to grow good numbers and even at a cost of 1% or 2% lesser bottom line, we are ready to do that.

Management articulated the strategic rationale for entering the solar EPC segment as diversification and top-line growth, even if it means accepting slightly lower margins, clarifying their approach to new ventures.

Asked by Smit Jain

We are looking. We are looking to expand beyond Tamil Nadu. We are looking. We have applied for 2-3 tenders which unfortunately we were not L1. And as I said, I have earlier told in my con calls also, when someone asks me, you want a healthier order book or a healthier P&L budget, I want a healthier margin. We are very conservative in bidding.

Management confirmed efforts to expand geographically beyond Tamil Nadu, emphasizing a cautious approach that prioritizes healthier margins over simply winning orders at any cost.

Asked by Smit Jain