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Markolines Pavement Technologies Limited — Call Transcript 2026
Jun 2, 2026
59560_rns_2026-06-02_ff149b75-6a17-430c-9b12-ba6ce36350a5.pdf
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Markolines Pavement Technologies Limited
Markolines
2nd June, 2026
| To,
BSE Limited
P. J. Towers, Dalal Street,
Fort, Mumbai – 400001.
Kind attention: Department of Corporate Services.
BSE Scrip ID: 543364,
BSE Script Code: MARKOLINES | To,
National Stock Exchange of India Limited
Exchange Plaza, C-1, Block G,
Bandra Kurla Complex,
Bandra (E), Mumbai – 400051.
Kind attention: Listing Dept.
NSE Symbol: MARKOLINES |
| --- | --- |
Sub: Transcript of Post Earnings Conference call with Analysts / Investors held on 29th May 2026
Dear Sir / Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the transcript of the Post Earnings Conference Call for audited financial results for the quarter and year ended 31st March 2026, held on 29th May, 2026 at 1:00 p.m. (IST).
The transcript will also be available on the Company's website at www.markolines.com
Kindly take the same on your record.
For Markolines Pavement Technologies Limited
SANJAY
BHANUDAS
PATIL
Digitally signed by SANJAY
BHANUDAS PATIL
Date: 2026.06.02 18:09:09
+05'30'
Sanjay Patil
Chairman & Managing Director
DIN: 00229052
Registered Office: 502, Wing-A, Shree Nand Dham, Sector 11, CBD Belapur, Navi Mumbai 400614 Maharashtra, India
Corporate Office: 6th Floor, Wing-A, Shree Nand Dham, Sector 11, CBD Belapur, Navi Mumbai 400614 Maharashtra, India
+91 22 6266 1111 [email protected] www.markolines.com
CIN: L99999MH2002PLC156371 (Formerly Markolines Traffic Controls Ltd.)
Markolines Pavement Technologies Limited
Q4 FY2026 Earnings Conference Call
May 29, 2026
Moderator:
Good afternoon, ladies and gentlemen and welcome to the Earnings Conference Call for Q4 and FY26 for Markolines Pavement Technologies Limited.
Today on the call from the Management Team, we have with us Mr. Vijay Oswal – Founder and Chief Financial Officer.
Mr. Vijay Oswal has over three decades of experience across infrastructure, finance, manufacturing and international business. He has been one of the guiding forces behind Markolines' growth through his sharp business acumen and strategic planning. Also joining us today is Mr. Rakesh Verma, Finance Head.
As a disclaimer, I would like to inform all the participants that this call may contain forward-looking statements which may involve risks and uncertainties.
At this moment all participants are in the listen-only mode. Later we will conduct a question-and-answer session. At that time, you may click on the Q&A tab to ask a live question. Please note that this conference is being recorded.
I would now like to request Mr. Vijay Oswal – Founder and Chief Financial Officer to run us through the Presentation for the Quarter and Full Year Ended 31st March 2026 and the growth plan and vision for the upcoming year. Over to you sir.
Vijay Oswal:
Thank you, Michelle. Good afternoon, guys. Thank you very much for being here on our early call to listen to us and to know more about what we do. Here we go.
So, we are very happy to present you, we as Markolines as India's road doctor, wherein we have been building better roads through the life cycle maintenance. And I am happy to take you through the Q4 presentation as well as the FY25-26.
Next. So, for those who are listening for the first time to give you a company overview, the company's full name is Markolines Pavement Technology Limited. We were founded in 2002 and having our headquarters at Navi Mumbai.
Mr. Sanjay Patil, who is our chairman managing director and myself, we both operate the company on a daily basis. We are listed on the NSE as well as BSE main board. Total employee strength is about 320 with a market cap of about Rs. 350 crores.
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As far as our work goes, we are into the highway operation and maintenance wherein till now we have done a major maintenance of more than 5,500 lane kilometers. We are exclusive experiences of 197 kilometers of road recycling what we call as CIPR. As of 31st March, we had an unexecuted order book of 600 crores plus and we operate PAN India.
Next. So, just quick recap of the financials:
As far as FY26 has gone, we have given a good growth, though because of the West Asia crisis, our performance was a little less, but still, we could manage to give you a better result.
So, as far as revenues are concerned, we have grown from Rs. 307 crores to @ Rs. 350 crores i.e. Rs. 348.49 crore. On a profitability, we have given EBITDA of Rs. 48.54 crore, which is more over last year. And as far as PAT is concerned, we have given a PAT of about Rs. 26.23 crores, which is approximately 15% more over the last year. And this has definitely given growth in the EPS from Rs. 10.16 to Rs. 11.90, which is a 17% growth over last year. So, these are the profit and loss statements for which I have already taken you through the summary and a graphical presentation.
Now I will tell you about the growth over last few years. As far as revenue is concerned, we are growing at 17% CAGR. And at EBITDA, we are growing at 21% CAGR. On a PAT level, if we look at, we have been growing at 27% CAGR over the last five years, right from FY22 to FY26.
So, as far as this final quarter goes, first three quarters have already been published. As usual, we have done the maximum turnover particularly in the Q4. Q4 has always been giving us the highest volume in terms of revenue, as well as the profitability, which adds to our balance sheet. So, in Q4, we have done a turnover of about Rs. 105 crores of revenue and giving a PAT margin of about 10.81%, which is generally higher in Q4, and EBITDA of about 18%, which is definitely high. Compared to the last year's Q3, we have grown about 13% quarter on quarter.
And if I look at year-on-year, then it is also a similar kind of growth. So, these are the balance sheet figures reflecting from our P&L consolidated of the Financial Year '25-26.
There are a lot of details available here. You can refer this presentation which is uploaded on our website. And you all can refer to the all the details on our official website, as well as the BSE or NSE. So, this shows an overall balance sheet wherein our overall the company's equity and liabilities. Equity which is about Rs. 202 crore and short-term liabilities are about total Rs. 126 crores. we have an asset block of about close to Rs. 30 crores. That is into the capital investment or the equipments. We own about three pavers, three plants and few other machineries. and other details which are available on the website.
So now I will just to take you through our business & what is India's road story. There is a strategic shift from where we were and where we are heading. The last decade was into the rapid expansions and then strong government support with growth in new greenfield
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highways. And then, as this network is maturing, we will have the next decade where we will have a requirement to rehabilitate and maintain this. So, because of the privatization, focus on the life cycle maintenance and cost optimization is very high. And this definitely put us into a very advantageous position because we are already into the business where we do highway lifestyle extension. We are already technology led and driven. We do a lot of things which are into the technological maintenance. We have done and introduced so many things for the first time in Indian road history such as micro-surfacing, micro-surfacing with Fiber, then the CIPR.
Now, if I have to look at what is it & where we are heading to. Maintenance is needed regularly because of the wear and tear nature of the road. So, the growing road network is definitely driving a higher O&M demand in institutional asset owners as there is a lot of privatizations which has happened. Their focus is on to increasing the life cycle performance. Now, there is a structural tailwind also to entire this industry because of the increasing asset base, growing private institutions, their contribution or percentage holding in terms of the road network and rising adoption of advanced maintenance technologies.
So, the Markolines advantage is basically we have a specialized maintenance capabilities. Then we are already providing the integrated service offerings. We have a proven track record with a strong relationship with every client. Every international fund who's in the market is our on our client list and basically, we have established credentials and credibility into the market. So, this is where the Markolines is positioning.
So, now what there lies as the next big opportunity. As I have already said that maintenance is mandatory because of the wear and tear nature. Every 5 to 7 years, the highway has to undergo an overall maintenance which we call as major maintenance. Up till now, we have been building the roads. Now as they are maturing, they are coming for the maintenance. If we compare ourselves with the global scenario, on an average, our maintenance as of now is tune of 15% of the road cost. Wherein If we compare this to the global scenario, which is 40% of the cost and this is where we are also heading with the all private institutions, funds, already owning the assets. Then with the growing public demand and as we are also moving slowly towards more preservation of the road quality, maintaining them to the optimal level wherein we get a very good riding quality.
Now, this is where we are as India. Up till my last presentation, I used to say we are the second largest network, but today we are the number one highway network in the world with about 6.7-million-kilometer of road length. And obviously, over the last few years, there has been a huge boost in the infrastructure segment. We used to build 20 kilometers per day road in 2014 when Modi regime started and now, we are building about 35 kilometers per day. And all these newly built roads will also come for the maintenance subsequently as it matures.
So, recently you must have seen that there was a news wherein the sovereign and international funds have been allowed to participate in PPP highway projects. Now, what does this mean? Basically, until now, the funds or the international players were already there, but they were
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not eligible to participate in the road construction. Now, recently, government has allowed them to participate at the construction phase also. Earlier, they used to take over the project only once it was completed and commenced. Because of this, definitely we will have more fund availability for growth. And obviously, their outlook towards the road construction as well as maintenance is that how they can have a larger lifecycle with the good quality. And with this, the potential for us is also growing. And definitely with international players coming in, the sophisticated and the trusted O&M partners will be the need of the time. Wherein we as Markolines are leaders in the market and as the only listed company we are at a definitely advantageous position.
So, now we are happy to present ourselves as India's 'Road doctor', because that is what we have been doing over the years. We are the pioneers in various technologies. And now we are happy to say that we are leaders too.
What typically we adopt the methodology is first we diagnose. We generally do not just go by the BOQs, but it is a regular practice for us, wherein we provide the comprehensive solutions where we diagnose the roads, understand the customer's problem, devise a tailor-made solution, which is future proof and deliver it to the client. That is where we have made our credentials and credibility into the market. Because of that, today we are the leaders in highway O&M. We are the only listed company in this space and all the funds who have come to India, we are their preferred partner into the highway O&M. Now, we are expertise into specialized maintenances. We are already technology-driven, lot of things we have brought into India and are trusted by the institutions and have a pan-India presence.
As far as our business vertical goes, we have divided our business lines into three verticals. One is highway maintenance, wherein we do the preventive maintenance, then major maintenance. Preventive maintenance is generally done to increase the lifecycle. Major maintenance is something which is mandatory by law. Because of the wear and tear nature, you need to overhaul the complete road length every five to seven years. And of course, with the new concrete roads coming in, we also do the rigid pavement maintenances.
Then under specialized maintenances, as I have said, we do micro-surfacing, Cold in-place recycling. Micro-surfacing in layman's language is basically a lamination of road wherein the water seepage is avoided and the life of the road is increased. And CIPR is a technology wherein it is the old bad road is recycled and relayed by a train of equipments, and completely new road is laid once the train of equipment passes.
Then a few years back, we have also started with the specialized construction. We started with soil stabilization and FDR. Then subsequently, we have entered into the tunnelling and bridges. And also, now we are developing business into the other infrastructures sectors like schools and sports infrastructure development.
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Now, on corporate side, we recently announced and already completed the filing with the exchange for the merger of Markolines Pavement and Markolines Infra.
Markolines Infra is basically providing the complete suite of highway operations, wherein as Markolines Infra, we operate about 60 work orders coming out of about 30 projects that also includes managing the 28 toll projects. As a integrated strength, what all will offered is basically, then we will be the only company providing the complete spectrum of services across the O&M as the only highway O&M platform. Then, obviously, because of the merger, we will have the expanded operational and executional capacities, better bidding eligibility because of the size consolidation and the data readily available to us by virtue of operation of those highways. This will also give us the revenues scale up because today we are doing 350 Cr in MPTL. But I have to tell you that both companies put together we are today @ 500 Cr. If merged, we would be Rs. 500 plus crore company. And this merger will also enhance the operational synergies and the efficiencies.
Now, as far as growth trajectory is concerned, we have already said that we are on the path to become a thousand crore company very soon. And to support that, as of today when we are talking, because of our growing credentials, now we are eligible for the higher bid capacity. We on our own now are eligible to bid up to the Rs. 500 crore project.
And because of that, we are now working on a lot of major projects wherein we could be part of the specialized construction or the maintenance project. And that because of that, today we have an active pipeline of about Rs. 2000-plus crore of the. Now, as far as March is concerned, I have already taken you through that we have done a Rs. 350 crore in pavement and @ Rs. 150 crore in infra and we are present across India. And this merger will definitely help us in further consolidating our performance. So, now, as far as the management is concerned this is how do we look at all this business in terms of actual operations, mergers and everything?
Now, basically, this will also give us strength our on a financial side. if I have to tell you, the balance sheet as you know, remains very disciplined and prudent in capital allocation.
Despite of economic disturbances in world, the business continues and operates in a very steady format. Because, we took really good preventive care wherein we could ensure the good results not having much of an effect of on to our bottom line. The merger will give us a very balanced business product mix. Wherein MIL will further strengthen our cash flows because that is the business wherein the monthly revenues and on regular basis assured business is coming in.
And as Markolines, we also have the enough or the adequate fund base as well as non-fund base limits available, wherein giving us more headroom for higher bidding for the higher value projects. As I said, as of now, we have close to Rs. 600 crore of an unexecuted order book with Rs. 2000 crore of active pipeline.
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Now, on the business side, the number of highway assets are really increasing. Government has also launched various InvITs on similar program and has been receiving very strong and encouraging success. Globally, infrastructure asset monetization has crossed the trillions of dollar and we are seeing and following the same trend. Approximately, as of today, we are close to 30% privatization and the government is looking at more and more monetization out of this by selling the assets either to the international funds or putting them into the InvITs. And definitely this will also open up a long-term opportunities for us as Markolines in the O&M business in a major way. Now, we have already seen merger benefits, it will definitely enable MPTL to offer the seamless lifecycle services across the maintenance and operations also. Cost saving and better financial management, obviously, because of the operational efficiencies and cost optimization, we will have definitely stronger financials & management practices. And of course, both put together will give us a more stronger balance sheet with the Pan India presence.
What is it that we have different than our competition? One, we are basically going to be an integrated highways lifecycle platform, providing the complete end to end services to all the highway asset owners. We have a very strong track record having been there into the market for last 23 years now. Proven credentials, long term client relationships and with the Pan India presence across India in terms of maintenance.
And as I said, how we differentiate in terms of competitive advantage is basically we are not the people who just provide one or two services. We are the only company providing the complete array of services. And secondly, our approach, as I said, is always like a doctor wherein we will understand client's problem, give them a comprehensive solution. We give a comprehensive solution where their problems will be addressed, giving them a cost effective and long-term solutions for highway operation and maintenance.
So, if you see our client list today, all the funds, major assets owners and the government agencies, they are on our client list. The first line will represent most of the InvITs and the international funds. Second is all the government & national agencies, corporations and the other as private asset owners. Now, this is where we are trusted by India's complete highway ecosystem. Because we are there for the asset owners to resolve every issue that they would have in terms of operation and maintenance of the highways that are being built in India.
So, that's all from the Markolines side, as we always say thru our tagline says that we are paving the path towards innovative tomorrow by way of the technology and doing the maintenance being there for people giving you the better riding quality. Now, and what we see is a healthy growth visibility and scalable long-term opportunity. This is what we are and we see a very good opportunity and growth prospect hereafter.
So, this is all from the Markolines side. Now, Michelle, we can open up for the Q&A session.
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Moderator:
Thank you very much, sir. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, please click on the Q&A tab on the panel and click on raise hand button.
The operator will announce your name when it is your turn to ask a question. Please accept the prompt on your screen and unmute your microphone while proceeding with your questions. You may also post your text questions.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask a question, please click on the Q&A tab on the panel and click on the raise hand button. You may also post your text questions.
Moderator:
The first question is from Nishita Jain from Sapphire Capital. Please go ahead.
Nishita Jain:
Yes. So, yes, I had a few questions. So, one would be on what is the update on the merger? Where are we like in FY27? Will both the companies or books be integrated? Are the books going to be integrated? Will the merger process be completed by FY27? If so, then when? Which quarter can we see the merger happening? Okay.
Vijay Oswal:
So, as far as we are concerned, we have filed our merger applications and we have submitted all the queries, answer to all the queries in the month of March only. Few of them have been answered recently too. And there are no further queries as of now pending to be resolved. So, if I look at the overall merger scenarios and case studies, then I expect that generally it takes about six months. So, we are definitely expecting that by FY27 completion, we should be a merged entity. And we are expecting on an average about six months for merger.
Nishita Jain:
Okay. Okay. Understood. So, you mentioned that we did 150 crore of top line in Markkula and Infra and FY26. What are the EBITDA margins that we see there? And on a consolidated level in FY27, what margins can we see in the merged company, merged entity?
Vijay Oswal:
Okay. So, as far as Infra is concerned, we are just going through the final audit. So, post that, within a week's time, we will be releasing the result also. But as far as Infra is concerned, let me just tell you that it is the, on a profitability percentage, it is definitely higher than the pavement. Purely being into the services, we generally draw approximately 9 to 10 percent of PAT margins.
Nishita Jain:
Okay. Okay. Understood. And my next question would be on Capex. So, I wanted to know what CAPEX are we looking forward to do in FY27 and if we have done any CAPEX in FY26?
Vijay Oswal:
So, as far as FY26 is concerned, we did not do any major CAPEX. But generally, our CAPEX is defined and driven by the client needs. So, we are definitely looking at introducing one more or few pavers and maybe one HMP close to about 10 crore of CAPEX this year.
Nishita Jain:
Okay. Okay. Understood.
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Vijay Oswal:
And as far as CAPEX is concerned, just let me give you one answer that will be helpful. That in this industry to keep the optimum efficiency, generally, we have to keep churning our plants on a regular basis. So, approximately every 3 to 4 years, we keep churning out the equipments.
Nishita Jain:
Okay.
Vijay Oswal:
Good.
Nishita Jain:
3 to 4 years, you said?
Vijay Oswal:
Yes.
Nishita Jain:
Understood. And like you mentioned that we have a strong active order by plan of 2000 crores. What is our win ratio generally?
Vijay Oswal:
So, when I am saying active pipeline, of course, the potential is too high. But when I am saying active, approximately up till now, we have been winning at least 50% of the orders that we target for.
Nishita Jain:
Okay. So, like by the end of FY27, what can be our closing order book that you anticipate?
Vijay Oswal:
So, see, if you look at our performances, generally, by and large, we have been always maintaining an order book, which is at least what, you know, sufficient for one to two years, or averagely 18 months. And we expect the same trend to maintain so that we have clear visibility with a target to achieve a higher side. We are expecting that we should have an at least 1000 crore order book.
Nishita Jain:
Understood. And my last question would be on if you could give some kind of guidance on profit like EBITDA margin and revenue growth in FY27, that would be really helpful.
Vijay Oswal:
Basically, this is the year, as I said, that now with one of our specialized construction project on the last phase wherein it has giving us a larger eligibility. So, as I said, since the project which we are running tunnel project in Maharashtra is about the completion, which has given us a very good eligibility of 500 crores on our own. And because of that, we are working on various things, though, as far as I cannot speak anything in terms of this, but we are expecting a very good growth this year to the tune of at least 30%.
Nishita Jain:
And this is includes the Markolines Infra company
Vijay Oswal:
Yes, its 30% on a standalone basis and the merger of an Infra into pavement will definitely give some gives an additional revenue. Because otherwise also we are close to about 45% of the MPTL in Infra.
Nishita Jain:
Okay, understood. And on the margin front like it is almost 1% down compared to FY25. So, what are the sustainable margins EBITDA margins that we can see going forward?
Vijay Oswal:
Okay, so as far as EBITDAs are concerned, generally you know, being a service provider, what we do is we our EBITDAs are subjective, because of the client's need. If my clients ask me to invest in the CAPEX, and as all expenditures is transferred to the clients while when we are working the costing. So, EBITDA may vary as a service provider. What we look at is generally is we maintain our bottom line. So, our PBTs and PAT if you look at, they are generally consistent.
Nishita Jain:
Okay, so they remain consistent at around 7% is that?
Vijay Oswal:
Yes, between 7% and 8%.
Nishita Jain:
Okay, understood. Thank you so much for answering all the questions.
Moderator:
A reminder to all the participants to please click on the raise hand option to ask questions at this time. You may also post your text questions.
Moderator:
Sir, I will be reading out the questions for you. And you may proceed with the answers. Thank you.
We will take the text question from Pranesh Shah from Caron Capital. And the question is, can you give up breakup of order book and how revenue booking happens when you say your target 100 crore closing order book by FY27? Does it include Markolines Infra as well as in this? What has led to decline in other expenses in Q4?
Vijay Oswal:
So, there are too many questions in this, I will take up one by one. Now, as far as order breakup is concerned, it is a mix. Our business is divided into two categories. One is the maintenance and one is the specialized construction.
Specialized construction orders, the volume will be higher, but they will extend over two or three years, whereas the maintenance orders will be to the tune of 40 to let's say 100 crores and they will be all consumed over a period of maximum 18 months. Our order book is generally a mix of both. As of now, if I have to tell you, approximately we will have in about 50-50 or 45-45 breakup in terms of maintenance versus construction orders.
Now, your second question is that, does this include Infra? No, I am not including the Markolines Infra, that will be add-on. As far as Markolines Infra is concerned, generally they are the recurring type of orders in nature, because those are the monthly maintenances and services that we provide.
Just to give you a ballpark figure, as of now, we are doing a monthly billing of close to about between 14 to 15 crores per month in Markolines Infra. And as far as your last question is, a decline in other expenses, generally you have to see, other expenses and the material
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consumption together. Because if we do an outsourcing, then the expenditure of our booked in different head, so they would vary.
But if you look at, by and large, our margins would be similar. As I said that since we work very transparently with our clients, we open our spreadsheets, discuss with them and generally we work on the cost-plus basis and that is what ensures our margin or the bottom line.
Moderator:
Thank you, sir. We will take the next question from Yash Nassar, an individual investor and the question is, what were the key factors that led to the strong 62% QOQ growth in PAT during Q4 FY26?
Vijay Oswal:
Okay, so generally infrastructure industry is subject to basically it is cyclic in nature because of the monsoon or environmental conditions. So, we generally have slower Q1s and Q2s and our business ramp up in Q3 and Q4. Obviously, that would give us the higher revenue. Because at the year-end & the financial closures, we also try to close all the other smaller aspect and billing, everything happens in the month of March, giving us a better visibility in terms of the PAT growth.
Moderator:
Thank you, sir. A reminder to all the participants, please click on the raise hand option. You may also post your text questions.
We will take the next question from Shreesha Rudrani, an individual investor and the question is, the company has indicated an ambition to nearly triple its revenue. By when do you expect to achieve this milestone? And the next question is, out of the current order book of over 600 crores, how much revenue is expected to be executed during FY27?
Vijay Oswal:
So, now 1000 crore mark, in my earlier communication also, I had said that we are looking at three years' timeline to achieve that. And we will, we are, as I said, with the increasing size eligibility, we will definitely put in our best efforts to prepare that as much as possible.
Now, as far as the revenue out of 600 crores, as I said, our revenue, definitely it will go with the order book. But out of this order book, the 50% order book is coming from the specialized construction, so which will be spread over a few years. And 50% will be executed in this year. But that does not limit us because the maintenance orders are something which are, we keep working on an everyday basis.
And generally, the major maintenance would start post monsoon. So, the monsoon is the period when the negotiations would happen. The orders, BOQs or the enquiries will be, are closed at the end of the monsoon and then work begins. So, there are a lot more enquiries that we are looking at in terms of maintenance orders.
Moderator:
Thank you, sir. The next question is from Rahul Singh, an individual investor. And the question is, could you provide more details on the Rs. 2000 plus crore project pipeline and the visibility
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of converting these opportunities into orders? Do you want me to read the next question as well, sir?
Vijay Oswal:
No, I will take one by one. I can also see because there are three, four questions., which actually I have answered this question, but let me just elaborate on this.
As I said, our eligibility has increased to 500 crores on an individual basis. So, as of now, we are working on at least four to five projects ranging from 300 to 500 crore rupees. That gives us a consolidated pipeline of 2000 crore of work that we are looking at.
Now, as far as visibility of conversion, as I have already said, generally, when I say active pipelines, we look at at least 50% conversions. And we are expecting the same by end of this year. Now, current revenue contribution from highway maintenance, as of March 26, the maintenance contributed to the approximately 65% and the specialized construction contributed to the 35%.
Moderator:
So, the next question is, what is the current revenue contribution from highway maintenance?
Vijay Oswal:
I answered that. I read that question and I answered it.
Moderator:
Thank you so much. Anyone who wishes to ask questions, may please click on the raise hand option. You may also post your text questions. So, we will take the next audio question from Himanshu Mali, an individual investor. Please go ahead.
Himanshu Mali:
Sir, which clients has onboarded in the last quarter and any in the talks in the near future? Means which clients have been onboarded in the last quarter?
Vijay Oswal:
Okay. So, as I said, generally, the infrastructure industry is, you know, the assets are owned by private Entities and It's a very limited fraternity. So, Himanshu, generally what happens is there are asset owners, which I said that the funds or the sovereign funds, international funds, they are acquiring the assets in India. So, one fund will always, have the multiple projects. So, generally whatever funds which are operating in India are on our client list. Now, their projects might vary from year to year, but generally, we keep working on with all the clients. Because the maintenance comes once in a five-year, their order cycles will vary from a year to year. So, as far as acquisition of new clients is concerned, it is not a client per se, but it is generally a project.
Himanshu Mali:
And sir, my next question is, like, what's your shareholding structure in MarkoLine Infra? And what will be the shareholding structure after the merger?
Vijay Oswal:
So, we have similar structure the Markolines Infra also, like payment, because we have other investors, friends and family members also who had invested with us in that company. So, by and large, our shareholding would remain same post merger.
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Himanshu Mali: Thank you. That's it.
Moderator: Thank you. We will take the next text question.
Moderator: So, we will take the next text question now. And it's from Rahul Kumar, an individual investor. I will read out the question once and for all, you may proceed with the answers.
So, the contribution from specialized construction has increased from 25% to 35%. How do margins in this segment compare with the traditional highway maintenance business? And the second one is as the company enters infrastructure development projects, what kind of margin should investors expect from this segment?
Vijay Oswal: Okay. So, as far as specialized construction orders are concerned. That was a very strategic decision that we had taken about three, four years back to enter into this segment, only with the intention to have an incremental bottom line because those projects. The specialized construction and the niche skill set that is required and gives us definitely higher margin. And our aim when we started was also the same to increase our bottom line by 1% from where we were and we are inching towards it slowly. Okay.
Moderator: Now, second question is, as the company enters infrastructure development projects, what kind of margins should investors expect from this segment?
Vijay Oswal: Okay. So, as a service provider, as I said, since we work very transparently with our clients, and I have already said in this presentation that our margins are generally, since we work on cost plus basis, our margins at bottom line are steady. And we can expect, but yes, now the growth is going to come from the volumes, not the percentage.
Moderator: Thank you, sir. The next question is from Sourav Choudhury from Raghunath Capital. And the question is, what is the current order pipeline which we are working on?
Vijay Oswal: Okay, as far as our pipelines are concerned, since we, because of the competitive nature, I will not be in a position to share the client's name or the project names. But I can tell you, as I have already said, in terms of major maintenances, we are working with few private funds, as well as some corporations. And in one of the corporations, we are already at an L1 position on an Rs. 120 crore contracts. And other larger specialized construction contracts, I have already said that we are working on Rs. 300 to Rs. 500 crore worth a single project. And we are working on about 3 to 5 projects like that. That amount, that combinedly gives us an active pipeline of Rs. 2000 crores.
Moderator: Thank you. Before we take the next question, a reminder to all the participants that you may please click on the raise hand option to ask questions at this time. You may also type your text questions, post your text questions.
We will take the next question from Disha Shah, an individual investor. And the question is, what level of CAPEX do you anticipate over the next few years to support the planned growth in revenue and profitability? The second one is, could you share an update on the proposed amalgamation of Markolines' Infra Limited and the expected timeline for completion?
Vijay Oswal:
Okay, though I have answered both the questions, the generally CAPEX, the investment into the capital assets is very subjective when it comes to maintenances. And because of the client's need, we have to keep churning on to the capital investments or the plants. So that we keep doing investments in Capex, But not more than 10 crores. Generally, as a policy, what we do is we have three set of machineries, which is owned by us so that we are ready for any kind of project and bidding. And other machinery is always being rented locally, whatever is available cheaper at that location.
And as far as mergers are concerned, we are expecting over by the year end. if you look at NCLT and all other processes, generally it will take six months. And so we are definitely expecting that by end of this financial year, we should be a merged entity.
Moderator:
Thank you, sir. Participants who wish to ask questions may please click on the raise hand option. You may also post your text questions.
We will take the next question from Pranesh Shah from Kairon Capital. And the question is, what EBITDA margins are we expecting going forward? And secondly, with rain expectations to be below normal level this year, does this impact our business and order flow and seasonality or would be positive for taking up specialized construction?
Vijay Oswal:
Okay. I have already answered both the questions. I will just repeat them.
As far as EBITDA is concerned, they generally, they could vary because of the nature and the requirement of client in terms of CAPEX investment onto that project. Cost of which generally we pass on. But since we work on a fixed bottom line, so our margins are pretty steady at a PAT level. As regards to monsoon, we are expecting about 90% of an average monsoon this year as per the IMD's announcement. and, do they affect our business? Yes, They do. But with the experience we have learned to keep the mix of our product mix, wherein we could work even through the monsoon in terms of either the maintenances or the specialized constructions. So, as we are growing and with the experience like tunnel projects, bridges, there will be still work going on during rains also. So, yes, it will affects the business, but not to that extent. But if you compare quarter on quarter, first two quarters will definitely have a lesser revenue because of the monsoons.
Moderator:
Thank you, sir. Participants who wish to ask questions, may please click on the raise hand option. You may also post your text questions.
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Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take the next question from Pranay Shah from Keraun Capital. And the question is, what are we doing on school and sports segment?
Vijay Oswal:
Okay. So, as we have been always looking at leveraging with the current skill set into other infra sectors. Basically, if you look at highway business, we are into the infrastructure development, wherein the construction is the primary activity that we carry on. So, that was one of the strategic plan in our growth plan, that we would leverage our skill set into other infra segments.
So, wherein we have got two orders. One is an open order from school, wherein development of their school infrastructure that will include the school, some buildings, then there sports facilities, as well as all other amenities and requirements of the school. And as far as sports is concerned, we have got recently one order comprising of two smaller orders of rehabilitation and development of sports complexes in Andhra Pradesh.
Moderator:
Thank you, sir. A reminder to all the participants, please click on the raise hand option to ask questions. You may also post your text questions.
We will wait for a moment while the question queue assembles. As there are no further questions, I would now like to hand the conference over to Mr. Vijay Oswal, Founder and Chief Financial Officer for closing comments. Thank you and over to you, sir.
Vijay Oswal:
Thank you, Michelle. So, here we are at the end of the presentation today. Let me just sum up quickly.
As Markolines, we are the largest service provider in terms of highway operation and maintenance. With the proposed merger, which we are expecting to be merged this year, we are also looking at a consolidation & more opportunities. With the increase in the eligibility criteria, we are also looking at high value projects, which definitely is going to give us a very good growth opportunity in near future, wherein we are expecting the growth with the leaps and bounds.
Thank you for all of you to be here to listen to what we do, how we do. In case if somebody has missed on to any questions, we will be really happy to answer any of the query or questions that you have. You can definitely write to us on our official IDs, which are published on the BSE website or even our websites and we will try & reply to them. Thank you very much. Thank you all.
Moderator:
Thank you, members of the management. Ladies and gentlemen, on behalf of Markolines Pavement Technologies Limited, that concludes today's session. Thank you for your participation. You may now click on the exit meeting to disconnect. Thank you, sir.
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