Acme Solar Holdings Limited — Q2 FY26

Acme Solar Holdings Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2g3N_2oiXaE Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Acme Solar Holdings Limited Q2 FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rupesh Sanank. Thank you and over to you sir. 0:39 39 seconds Yeah. Good afternoon everyone. Uh on behalf of Vara securities we welcome you all for the cube 36 0:48 48 seconds solar holding. I take this opportunity to welcome the management of solar represented by Mr. Manumar 0:56 56 seconds chairman and managing director Mr. 1:03 1 minute, 3 seconds CF I'm so sorry to interrupt you Mr. Manote sir but uh your voice is breaking yeah Mr. Ankit Warma head of corporate 1:11 1 minute, 11 seconds finance Mr. Arun Chopra head of finance and accounts so we will begin the call with the brief overview by the management followed by Q&A session I 1:21 1 minute, 21 seconds will now hand over the call to Mr. Nikil sir for his opening remarks. Over to you sir. 1:28 1 minute, 28 seconds Thank you. Thank you. So thank you all uh for joining us today. Uh I am Nikin Jindra CEO and director on board of the 1:36 1 minute, 36 seconds company. I'm uh like uh man mentioned I'm joined today by our founder and chairman uh Mr. Mano Mumar Paday Rajat 1:44 1 minute, 44 seconds Kumar Singh our group CFO Anutma head of corporate finance and Arun Chopra head of finance and accounts. It is my pleasure to share the highlights of our 1:52 1 minute, 52 seconds quarter 2 performance. Uh before we delve into our performance, I'd like to share some sector highlights uh briefly. 1:59 1 minute, 59 seconds So renewable energy sector achieved a significant growth uh with 35 gawatt of new capacity additions from January 2:06 2 minutes, 6 seconds through October 2025 bringing the total installed renewable energy capacity including hydro to 247 gawatt. This 2:14 2 minutes, 14 seconds expansion enabled renewable sources to contribute approximately 27 odd percent of the India's total energy regeneration marking a historic milestone for the 2:21 2 minutes, 21 seconds sector. I would also like to uh briefly mention a few key regulatory upgrades which are instrumental in accelerating the power demand and renewable energy 2:30 2 minutes, 30 seconds installations. uh there has been a reduction in BSC rates which has been a key reform uh by the government on key solar and wind project equipment from 2:38 2 minutes, 38 seconds 12% to 5% directly impacting the capital cost and enhancing the viability of solar and wind projects. It should help in reducing the cost of power and of 2:46 2 minutes, 46 seconds course uh which increases the demand uh from a renewable perspective as compared to other sources of power. Secondly, the renewable energy purchase obligations 2:55 2 minutes, 55 seconds have been replaced with renewable energy consumption obligations with a wider compliance base prescribed for designated consumers like discom open 3:02 3 minutes, 2 seconds access and capital users. It sets out a progressive consumption target to achieve a minimum of at least 43% R 3:10 3 minutes, 10 seconds consumption by 2030. This will again positively impact the renewable energy demand in alignment with our 2013 renewable energy targets. 3:19 3 minutes, 19 seconds Also on the regulatory side, the CRC notified the third amendment of connectivity and DNA regulations which is very important for us wherein it introduced the concept of solar and 3:28 3 minutes, 28 seconds non-solar access to accommodate battery energy storage system in the grid. This is aimed at managing the intermittent nature of solar and wind power while maintaining grid stability. This 3:36 3 minutes, 36 seconds amendment particularly allows straw of grid powered by battery energy storage system for usage of existing connectivity infrastructure thereby enabling developers to utilize battery 3:45 3 minutes, 45 seconds energy storage system in their existing operational subsistence for merchant operations. Also a very important uh uh 3:52 3 minutes, 52 seconds honorable Supreme Court uh taking note of around 1.5 lakh crores of regulatory assets has directed all state regulatory commission and discounts to formulate 4:01 4 minutes, 1 second timebound roadmap for liquidation of long pending regulatory assets and for the liquidation of outstanding regulatory assets within four years. 4:09 4 minutes, 9 seconds This would bring much needed financial discipline into how electricity tariffs are determined. This judgment is a very important one in India's regulatory 4:16 4 minutes, 16 seconds landscape as it reinforces the statutory obligation of regulatory commissions to ensure uh timely recovery recovery of 4:23 4 minutes, 23 seconds cost thus uh holding financial liability in the power distribution sector. 4:29 4 minutes, 29 seconds Now coming to our company's performance uh uh in this quarter. So our execution guidance for FY26 was to commission 43 4:36 4 minutes, 36 seconds megawatt renewable energy capacity and we are on track to achieve it. We have commissioned 378 megawatt capacity till date and balance 72 megawatt is under 4:44 4 minutes, 44 seconds advances of construction. We will most likely be done early part of January with that. Uh in addition to our earlier 4:52 4 minutes, 52 seconds guidance we plan to approximately operate 1 gawatt hour of battery energy storage system on budget from quarter 4 FI26 onwards. uh which is expected to 5:01 5 minutes, 1 second give an an upside potential of annual aid of around 170 crores assuming price difference of 5 rupees between uh mer 5:08 5 minutes, 8 seconds power sale during peak cars and cost of producing the same. Uh with recent commissioning our operational portfolio 5:14 5 minutes, 14 seconds now stands at uh around 2,918 megawatt capable of delivering an annual steady 5:21 5 minutes, 21 seconds state project level aida of uh rupees uh 225 to 275 cr and an aida yield uh of around 145%. 5:31 5 minutes, 31 seconds for our under construction capacity uh which is powering our growth. uh we sign PPAs uh with uh Tatana power this is our 5:39 5 minutes, 39 seconds uh so uh in terms of the uh it's a private utility our first with the private utility uh it's uh with the 5:46 5 minutes, 46 seconds private discom 50 megawatt uh uh FDI permanent discharable renewable energy which effectively is uh is around a 5:54 5 minutes, 54 seconds battery of around 250 megawatt hour so so uh in terms of the kex around 10 cr odd per megawatt capex uh and 550 6:02 6 minutes, 2 seconds megawatt hour of standalone best with NSPC uh which of course is uh with our Andhra Pradesh and these two PPAs were 6:11 6 minutes, 11 seconds signed uh this takes our total PPA signing capacity to around 2.3 GW uh which we are executing during the 6:18 6 minutes, 18 seconds quarter we won new projects uh aggregating to 720 megawatt capacity comprising uh this 50 megawatt LB which 6:25 6 minutes, 25 seconds we were able to sign in times the PPA and 670 megawatt solar plus thus uh expanding our under construction 6:32 6 minutes, 32 seconds portfolio uh to now 4.5 GW that includes a scientific capacity of 2.3 GW. Both these solar and best projects uh which 6:40 6 minutes, 40 seconds is 220 megawatt uh RUM u ramsel marina and 450 megawatt SGM represent uh 6:48 6 minutes, 48 seconds distinctive opportunities uh with with strong strategic and financial merit and with a strong uh counterparty in place. 6:54 6 minutes, 54 seconds Uh firstly uh the 220 megawatt Ramsul Marina solar park. This project was secured at a competitive tariff of around 2.764 uh per unit entailing four 7:04 7 minutes, 4 seconds hours of peak supply and 2 hours each in the morning and evening while maintaining a maximum annual CF of 35%. 7:10 7 minutes, 10 seconds Attractive tariff is supported by several cost efficiencies including non applicability of uh ALCM. So you can buy Chinese sales in this uh and this was the last one to catch that uh timeline. 7:22 7 minutes, 22 seconds Reduce GSC rates. Again this is the first one to cash reduce CSC rates and free night charging by discom which is 7:28 7 minutes, 28 seconds again a first uh because in all our TPS earlier we were charging ourselves here the free night charging by discom which which which sometimes comes at a premium 7:37 7 minutes, 37 seconds for meeting morning peak demand while tariff remains unchanged on discharge and bundle infrastructure within the solar parks. So that all comes along with this uh whole package making it 7:45 7 minutes, 45 seconds easier to execute making it easier to operate with land and connectivity infrastructure above 33 KV level to be provided by Ramul. The project benefits from significant capex savings. 7:55 7 minutes, 55 seconds Additionally the presence of an identified offtaker because here there is an offtaker which is uh very keen to sign the PPA as soon as possible. Uh it 8:04 8 minutes, 4 seconds is expected to expedite PPA signing. Uh collectively these factors ensure a strong risk adjusted return for the project. test for analysis. We estimate 8:12 8 minutes, 12 seconds that after accounting for all project benefits, the effective tariff for the bid now should be around equivalent of around 3 and a half unit plus uh for a 8:20 8 minutes, 20 seconds solo plus two disc uh configuration living mid to high in this industry returns. Secondly, the 450 megawatt SVN 8:28 8 minutes, 28 seconds project uh with P power V1 which is uh around 2200 megawatt hour of uh battery we will put at 6.75. This is uh again 8:36 8 minutes, 36 seconds very attractive. It entails only peak hour supply for 4 hours to the offtaker and this is one of a new kind of uh 8:43 8 minutes, 43 seconds projects which will definitely um solving a demand because the peak power deficit is a reality. Of course the 8:50 8 minutes, 50 seconds solar deficit is no longer there for most states but peak power deficit is there for most of the states. So this solves a problem which will find more takers and we're getting great demand 8:59 8 minutes, 59 seconds for this project uh with various of takers. uh so we are very hopeful of signing this and of course we uh as he went took consent of various uh buyers 9:08 9 minutes, 8 seconds before winning the bid which has been the uh which has been the scenario now for all the upcoming bids. So in this particular build the solar generation 9:16 9 minutes, 16 seconds will primarily be used to charge the battery with uh surplus energy sold on power exchange. Given the unique project design the project is expected to 9:23 9 minutes, 23 seconds deliver a strong aid to capex yield of around 14 15% and a strong counterparty demand anticipated to drive ap with 9:30 9 minutes, 30 seconds these new wins our total portfolio now stands at around uh 7390 megawatt including 13.5 gawatt hour of test best 9:38 9 minutes, 38 seconds capacity and 5180 megawatt of PTS capacity. Uh we have also placed new orders for uh 2 GW best with global 9:46 9 minutes, 46 seconds supplier this quarter. Uh this takes our total best orders to 5.1 GW date which is expected to get installed in a phase manner starting quarter 4 FI26. 9:55 9 minutes, 55 seconds As communicated last quarter, we have successfully commissioned uh our pilot best project of 10 megawatt hour at our IPS plant to assess the effectiveness in 10:03 10 minutes, 3 seconds different configurations which will help us reduce cost uh and increase efficiency for our FDR suited projects. 10:10 10 minutes, 10 seconds Moving to our financial performance now our total revenue for the quarter stands at uh 601 cr 104% increase year on year 10:19 10 minutes, 19 seconds uh one key point to note is that because of early commissioning by a quarter and delay in commissioning of one of the connectivity lines the na line themes seeker project of seed and meot is 10:28 10 minutes, 28 seconds currently operating under a temporary GNA/a basically short-term open excess having said that the connectivity line is 10:36 10 minutes, 36 seconds anticipated to be operational by December uh as for repeated assertions CTU and of course confirmation at the highest possible level uh post which the 10:45 10 minutes, 45 seconds plant will shift to uh LTOA long-term open X and achieve full revenue potential. So AIDA uh for the whole 10:52 10 minutes, 52 seconds quarter uh comes in for us at around 534 crores again by uh 180% uh with margin 10:59 10 minutes, 59 seconds of 89% as against 87% last year. PAT is at 115 crores um with a margin of PAT 11:07 11 minutes, 7 seconds margin of around 19%. We continue to maintain a strong balance sheet discipline. Our net operational debt to aida stands at 4.3 uh x and our net debt to net worth stands at 1.9x. 11:19 11 minutes, 19 seconds Further the days of sales outstanding has dropped to a record uh low of 27 days as the proportion of central optic 11:27 11 minutes, 27 seconds increased in our operational portfolio thus giving us a lot of cash flows uh earlyization of our revenues. Coming to 11:35 11 minutes, 35 seconds the capital uh optimization efforts uh we achieved a significant interest rate reduction of approximately 75 basis 11:42 11 minutes, 42 seconds points on existing 288 cr debt uh for our uh uh operational projects uh driven by the credit rating upgrade. 11:51 11 minutes, 51 seconds Additionally uh one of our three uh operational project has been refinanced uh with 1100 crores at an optimized interest rate of around 8.4% which we see coming down further. 12:02 12 minutes, 2 seconds On the green field side, uh we secured financing to the tune of around 7,000 cr this quarter uh for our uh 680 megawatt 12:09 12 minutes, 9 seconds FB projects from SBI and RC uh which will uh reduce our cost uh on the on 12:16 12 minutes, 16 seconds rate on the green field because we'll be uh taking a buy credit and LC mechanism which is possible with the bank financing. On the credit rating we had a 12:25 12 minutes, 25 seconds very significant positive uh which is like the atmos solar is now upgraded to double A handle. Uh it is rated A minus by both Crystal and IKRA which is a very 12:34 12 minutes, 34 seconds significant positive for us uh this quarter. Additionally um our 1100 megawatt of operational projects received a rating of double A minus uh 12:42 12 minutes, 42 seconds from IKRA and so that's uh something which happened this quarter on the capital optimization efforts on the 12:50 12 minutes, 50 seconds operational metrics. Just to uh wrap up in quarter 2 uh we generated around 153.9 cr units which is up from over 12:59 12 minutes, 59 seconds 134% uh year on year. Also our capacity utilization factor improved to uh 24 13:05 13 minutes, 5 seconds uh.1% from 22 uh.2% last year with both part and grid availability about 99%. 13:12 13 minutes, 12 seconds With that I now open the floor for questions. U we'll be happy to take them. Thanks a lot. 13:19 13 minutes, 19 seconds Thank you very much. 13:22 13 minutes, 22 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on 13:30 13 minutes, 30 seconds their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. 13:37 13 minutes, 37 seconds Participants are requested to use handsets while asking a question. 13:42 13 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 13:52 13 minutes, 52 seconds The first question comes from the line of Mohit Kumar from ICICI securities. Please go ahead. 13:58 13 minutes, 58 seconds Yes. Good afternoon sir and uh thanks for the opportunity sir. So my first question is sir uh do you see any risk 14:07 14 minutes, 7 seconds of cancellation of the projects where PP is yet to be signed? Do you see few of the projects which are under under LOA 14:17 14 minutes, 17 seconds getting PPA in the next couple of months? 14:21 14 minutes, 21 seconds Right. Right. Mo. So uh yes uh there is there is a uh uh there is an increased urgency uh from the central government 14:30 14 minutes, 30 seconds to uh basically take a decision uh for the states to sign the pending PPS. And that is why you see in the last uh 6 14:38 14 minutes, 38 seconds months the bids have been uh low because the government wants to clear up the existing projects first before they go 14:45 14 minutes, 45 seconds for new bids and also the new bids are now coming with a pre sort of uh pre-demand uh locked in such that the 14:52 14 minutes, 52 seconds PPS signing uh is not extended because uh as far as government is concerned they want to realize the connectivity utilization they want to improve the 15:01 15 minutes, 1 second connectivity utilization such that uh there is no uh connectivity which is not utilized. is uh in the earliest possible time because that's a waste of national 15:08 15 minutes, 8 seconds resource national resource. So as far as our signing is concerned uh we have attractive tariffs uh across uh I grade 15:16 15 minutes, 16 seconds across FDI and we have uh ongoing conversations at a uh where where either the consent letter is coming or or the 15:25 15 minutes, 25 seconds uh the project is at a board stage. So um uh we have uh you can say with four 15:32 15 minutes, 32 seconds counterparties uh strict uh uh equally almost with all the four counterparties. 15:37 15 minutes, 37 seconds So uh we are uh quite advanced in couple of them and of course we are not advanced in uh in and let's say one or 15:44 15 minutes, 44 seconds two of them. So uh now what is happening is because of this urgency we will see that uh some of them will get signed 15:52 15 minutes, 52 seconds earlier and uh some of them may get signed later. uh but if uh there is a decision taken to uh basically let's say 15:59 15 minutes, 59 seconds uh uh the but our tariffs are attractive so we uh remain confident because the directive is not to do the legacy PPAs 16:07 16 minutes, 7 seconds which are not finding any takers so that u uh that sort of uh uh determination of no demand so we are not seeing in any of 16:16 16 minutes, 16 seconds our PPS that there is no demand for it from any state there is a demand for uh the state but the procedure uh is a multi-led sort of procedure at the state 16:24 16 minutes, 24 seconds where First the discom approves and the uh regulatory commission approves. So uh we are in discussion with our uh all the 16:31 16 minutes, 31 seconds RIS uh wherever we have got uh and in fortunately in our in our cases there is a uh there is a demand uh from states. 16:39 16 minutes, 39 seconds So we will we will uh as soon as we have clarity on any of these uh we have no uh ne negative confirmation from anything 16:47 16 minutes, 47 seconds that they are not finding because we are personally also in touch with most of the states. So we are not seeing that there is no take off for for let's say 16:55 16 minutes, 55 seconds uh any of these PPS because the tariffs are competitive like uh we mentioned and some of them uh the tariffs are not followen like in terms of the FD with 17:03 17 minutes, 3 seconds four RP power uh there has not been any tender uh which has come up uh which has beaten that uh tariff because we have 17:11 17 minutes, 11 seconds throughout the spectrum of that and what makes the earlier one slightly attractive is that they are coming up uh in in shorter timeline where ISTS waiver 17:20 17 minutes, 20 seconds is not uh expiring. So there is a benefit to the buyer if they buy that because if a new bid comes they will surely have to pay the whole ICF charges 17:28 17 minutes, 28 seconds and also there is a benefit of ALCN u because as you know there's a difference between a big difference between uh Indian modules and the Chinese uh uh 17:37 17 minutes, 37 seconds cell module. So so these are the benefits which are appealing. uh now the only thing is the it's up to the states to take early decisions because uh and 17:44 17 minutes, 44 seconds and uh given that we had uh uh we are now picking up on the energy demand we are hopeful that some of the large 17:52 17 minutes, 52 seconds states uh uh will will take up uh early decisions so that's where we are on the BPA side right 18:00 18 minutes yeah understood the second question is on the uh transmission issues it seems like the transmission projects are 18:07 18 minutes, 7 seconds facing a lot of issues in terms of commissioning How do you see the risk to the under construction project which can delay our commissioning timeline? 18:18 18 minutes, 18 seconds Sure. Sure. So, so we we uh we affect this uh every uh fourth time uh in terms of the connectivity timelines of the 18:25 18 minutes, 25 seconds substations uh where our projects are coming up. So u just to give you some examples u we we uh like particular 18:34 18 minutes, 34 seconds subsessions there are the SEOs available so we can evacuate power uh from the SEO and uh you look at uh new match you look 18:42 18 minutes, 42 seconds at uh Vik they're all coming within the timeline with uh at at max uh one to 18:50 18 minutes, 50 seconds three month kind of a timeline delay so uh and they are all within the PPA like a new much plant of ours which we have 18:57 18 minutes, 57 seconds signed up with Damodra Valley Corporation through uh NFCC. So that is actually coming up early because the newest connectivity is operational. It 19:05 19 minutes, 5 seconds depends on the choice of the substation you allotted to that uh uh PTA and whether that is coming on time or not. 19:11 19 minutes, 11 seconds So what we do is the PTAs u which has been signed have got our best connectivities which are well within the 19:17 19 minutes, 17 seconds timeline of that PPA. So uh max delay of a quarter uh from the signed uh PPA 19:24 19 minutes, 24 seconds dates uh is what we are seeing and as a uh additional mechanism uh to prep our revenues as we mentioned before we have 19:32 19 minutes, 32 seconds lined up the battery installations earlier so that's a separate point but that is something we are doing on top of uh this to increase the revenue but 19:40 19 minutes, 40 seconds connectivity wise uh from our CPA timelines we are not seeing delay more than a quarter uh in in the allotted uh connectivity it is also a function of 19:49 19 minutes, 49 seconds whether you have taken the liberty of allotting uh connectivities which are getting delayed uh and using the maximum possible time allowed in the PPA or you 19:57 19 minutes, 57 seconds are looking for early commissioning and also the uh inventory of connectivities available with each and every sort of player. So as far as we are concerned we 20:06 20 minutes, 6 seconds have quite a lot of connectivity coming up at various timelines in 26. So that gives us lot of uh flexibility uh 20:13 20 minutes, 13 seconds wherever and we have taken connectivities with flexibility uh bases lag and which is bank guarantees which allow you to allocate the connectivities 20:22 20 minutes, 22 seconds uh across CPAs and very little connectivities we have basically letter of reward uh which kind of lock you in. 20:28 20 minutes, 28 seconds So uh that's that's uh through u our allocation and uh uh connectivity inventory we have been able to address 20:36 20 minutes, 36 seconds uh uh let's say uh if there are delays they are allotted to later understood. Thank you and all the best. 20:45 20 minutes, 45 seconds Thank you. Thank you ma'am. 20:47 20 minutes, 47 seconds Thank you. The next question comes from the line of Bala Subramanyam from Aihant capital. Please go ahead. 20:55 20 minutes, 55 seconds Good afternoon sir. Thank you so much. 20:59 20 minutes, 59 seconds So this to interrupt you Mr. Bala Subramanyam but your voice is breaking. Can you please use a handset while speaking? 21:09 21 minutes, 9 seconds Right now it's clear madam. Yes. 21:12 21 minutes, 12 seconds Yeah sir. This current uh under construction uh weighted average tariff is around uh 4.2 per kilowatt hour uh 21:21 21 minutes, 21 seconds which is relatively higher than current operational portfolio of 3.4 4 rupees per kilowatt hour and this trend is 21:28 21 minutes, 28 seconds sustainable uh it's majorly uh driven by uh FDR or BFS or do you anticipate any 21:36 21 minutes, 36 seconds uh tariff compression as the renewable market measures and becomes more competitive 21:44 21 minutes, 44 seconds uh thanks for your query uh so see uh in in renewable sector because uh the kind of bids is very dynamic so I will 21:52 21 minutes, 52 seconds request you to look at return on capital employed or a a big divided by revenue or a big divided by tariff as a metric 22:00 22 minutes because uh all these CPA let's say the peak power tariff of 6.5 right uh 6.75 looks high on a uh uh on a on a topline 22:10 22 minutes, 10 seconds perspective uh but the capital requirement is also high so I would not compare uh I would not do a weighted average of tariffs to realize whether 22:18 22 minutes, 18 seconds the everybody is going up or not because uh it is also because it takes a lot of batteries there it takes a lot of solar are there to charge. So uh the weighted 22:28 22 minutes, 28 seconds average tariff is sometimes uh misleading unless you adjust that for capeex and unless you adjust that for uh 22:34 22 minutes, 34 seconds what is the component of that because each source either generates or stores. 22:40 22 minutes, 40 seconds So wind as you know sometimes generate higher cuf in certain geographies the car the the kx is slightly higher the 22:46 22 minutes, 46 seconds battery is uh storing and realizes the benefit of the peak power. So of course the uh tariff has gone up but the configuration of PTA is also important 22:55 22 minutes, 55 seconds whether what are you giving there. Let's say somewhere you have a lease kind of a project where you giving lakh per megawatt of let's say 2 and a half 2.2 23:03 23 minutes, 3 seconds lakh or megawatt monthly. So uh uh the market has got slightly more uh varied 23:11 23 minutes, 11 seconds uh for for us to do a weighted average salary analysis of course for uh estimating our revenue and cipex but revenue uh should be looked at in with 23:20 23 minutes, 20 seconds cipex. So what guidance we can give you is we will always bid for projects with 14 15% ro that is something we really 23:28 23 minutes, 28 seconds want to stick to but tariff uh and revenue I would request you to not look at it on a standby basis. 23:35 23 minutes, 35 seconds Okay sir. Sir on that BSS side I think we have operational 10 megawatt hour pilot with two different container 23:43 23 minutes, 43 seconds configurations. What are the key learnings regarding efficiency in terms of uh uh roundtrip losses degradation 23:51 23 minutes, 51 seconds degradation rates and operation reliability. Why I'm asking this question? Earlier uh we have our 23:58 23 minutes, 58 seconds decision to import complete uh uh BSS containers uh uh like which is prioritize reliability over cost. Just 24:06 24 minutes, 6 seconds want to uh know about the key learnings and is there any long-term service agreements with our mentors uh uh 24:14 24 minutes, 14 seconds especially for specific terms regarding durations, performance guarantees and degra degradation clauses. 24:22 24 minutes, 22 seconds Right. Right. So uh see u u and we have u a mix of technical and uh contractual 24:31 24 minutes, 31 seconds reasons uh to uh basically uh prepone the battery capex like we explained the last time and uh before last time. So uh 24:40 24 minutes, 40 seconds the the contractual reason is that uh it allows us to capture the uh the arbitrage between the peak power prices 24:47 24 minutes, 47 seconds and the solar prices prevailing. So you can use solar to charge or or uh the lower rates to charge the uh batteries 24:55 24 minutes, 55 seconds and sell it on the merchant. So that makes a compelling business sense and of course the cex is well within much below the range we targeted uh when we had bid 25:03 25 minutes, 3 seconds for these projects. So uh that makes the uh commercial part of decision about getting the batteries early. In terms of the technical part, uh we of course have 25:12 25 minutes, 12 seconds been operating battery in our uh in the group on the green ammonia side for last four five years. But here we were trying to u uh let's say work out the various 25:21 25 minutes, 21 seconds combinations of uh of the um of the PCS of the battery management system of the uh inverters how how we can uh uh 25:30 25 minutes, 30 seconds operate uh with a partic with a particular equipment without a particular equipment. So we are pleased to say that we have been able to uh 25:38 25 minutes, 38 seconds increase the efficiency. By efficiency I mean reduce the capex uh and generate the same sort of uh energy and also uh 25:47 25 minutes, 47 seconds and also basically uh get the uh uh get the reliability in terms of the router proficiency numbers which we have 25:54 25 minutes, 54 seconds contracted and in terms of the uh the the discharge rates uh we have uh contracted and we have bought and these 26:01 26 minutes, 1 second all 10 megawatt each have been uh done uh uh using uh using uh some of the suppliers which we are going to work in the future. 26:10 26 minutes, 10 seconds So that allows us to reduce the uh installation time also as we get these large batteries uh coming up starting u 26:18 26 minutes, 18 seconds early next month. Uh so so it allows us to reduce the u uh reduce the installation time know any sort of uh 26:26 26 minutes, 26 seconds the prices we may get uh in terms of the various uh equipments and also uh reduce the uh bill of material for the future 26:34 26 minutes, 34 seconds projects uh wherein because some of the uh configurations we have tested allows us to uh uh reduce uh uh reduce the 26:43 26 minutes, 43 seconds capex uh for our ongoing projects where we are yet to uh order uh various equipment. So it it has been quite 26:51 26 minutes, 51 seconds successful uh and of course it will help us uh because you know in some projects you need to uh charge only batteries so you little more headroom in some 27:00 27 minutes projects you are installing batteries where solar is already installed so it gives you less headroom so um I can tell 27:07 27 minutes, 7 seconds you let's say uh our rams project the uh where we are getting nighttime power from the customer uh so that gives us uh 27:15 27 minutes, 15 seconds some more flexibility to try out this experiment. So it is dependent on the configuration of the PPA where you can apply some of these uh uh tests to be 27:23 27 minutes, 23 seconds done. So we will uh we will uh apply each and when where uh and this allows us to uh improve our convictions on 27:32 27 minutes, 32 seconds those configurations. So uh we we and in terms of the long-term agreement like we mentioned last time we have long-term uh service agreement for 15 years uh on the 27:41 27 minutes, 41 seconds on the uh with with the vendors we have signed up uh uh best for uh so of course we are paying them uh annual uh 27:48 27 minutes, 48 seconds maintenance fee also and they will have on ground people and they will have on ground uh reserves uh uh to to service 27:56 27 minutes, 56 seconds uh uh to guarantee the availability and the route efficiency they have told us and we have done the factory uh in both of our vendors we have done the uh 28:05 28 minutes, 5 seconds factory test also uh with with the uh required levels of uh uh required levels of u efficiency. So uh before the 28:14 28 minutes, 14 seconds dispatch uh from the third party so so they are in the rig and they are now uh getting u they are in the logistics so they are on the way to come to India. 28:23 28 minutes, 23 seconds Nigel, let me also reply here. My name is Manoj. Let me give you one more reply that we were testing the battery for the 28:31 28 minutes, 31 seconds EMS requirement where we wanted to see that how the battery will behave in the various condition of discharge not only 28:38 28 minutes, 38 seconds what is given in the PPA but also in the support of if we need the battery for the what is called ancillary support in the afternoon or in the morning for 28:46 28 minutes, 46 seconds short time. So we were testing and it was a very successful test. we did in two configuration and the both the configuration helped us to improve not 28:54 28 minutes, 54 seconds only the long-term discharge but also very short-term discharge that was the first and second question I think uh what you had is whether the roundtrip 29:02 29 minutes, 2 seconds efficiency is okay what we have taken in the bid fortunately we were a we were able to improve by four 5% of the 29:10 29 minutes, 10 seconds roundtrip efficiency because of this configurational adjustment so what we wanted to achieve I think with these two 29:17 29 minutes, 17 seconds golden container we call it golden container because they come first and we do the whole installation testing and with that we are able to assertain what 29:25 29 minutes, 25 seconds we have baited and beyond that some of those improvements which Nikl mentioned we could achieve it 29:33 29 minutes, 33 seconds okay sir so my next question I think we have refinanced nearly 1,00 cr to 8.4% 29:40 29 minutes, 40 seconds 4%. This is a fixed rate or floating rate and uh and what is the average uh debt tenor and is there any significant 29:48 29 minutes, 48 seconds near-term uh bullet repayments are there and are we having uh any uh hedging strategy uh given the expectation of uh 29:58 29 minutes, 58 seconds volatile interest rates right? So uh all of our debt which we have refinanced uh is uh for a tenor of 30:06 30 minutes, 6 seconds uh 20 years uh average uh because uh that is uh uh that is what we are uh we have done and uh in terms of the 30:15 30 minutes, 15 seconds interest rates uh we are uh effectively getting a rate of around 8%. uh because it's linked to a uh MCLR plus 10 basis 30:24 30 minutes, 24 seconds point spread that is the typical rate we are getting uh of course uh because the rating upgrades have happened in this project where we have reached 8.4% it is shortly likely to be uh reduced to 8%. 30:36 30 minutes, 36 seconds Uh and uh that is the rate we are seeing in all of our refinancings for a double A asset uh from bank financing. If you 30:43 30 minutes, 43 seconds go for a bond financing we could catch maybe a uh a better effective rate. Uh but of course there are because of the prepayment fees and because of uh the 30:52 30 minutes, 52 seconds short-term nature of uh mutual fund and u u uh financing because typically mutual fund players are only there in 31:00 31 minutes the uh bond there are insurance is currently not very uh highly present for the long term. There are uh and infra funds are typically participating along 31:08 31 minutes, 8 seconds with banks in the long-term needs. So we are able to capture them in the bank financing. uh so so 8% is a typical rate for all the refinance and we are hopeful 31:17 31 minutes, 17 seconds that uh we will get all of our portfolio whichever can be refinanced to closer to that rate uh and that's a significant 31:23 31 minutes, 23 seconds upside for us uh because uh it and this is all floating to your other question it is it is floating because we are able 31:31 31 minutes, 31 seconds to capture the uh uh the downside uh in the uh interest rate the down cycle in 31:37 31 minutes, 37 seconds the interest rate uh we we have uh of course done one refinancing last quarter which we beat uh with Bank of America 31:45 31 minutes, 45 seconds that was on our NTD so that was fixed at around 18 and a half% uh which we achieved last quarter. So uh that is one 31:52 31 minutes, 52 seconds fixed. So we maintain a a proportion of uh fixed and floating. Uh so some of the projects which are coming up for uh uh 32:00 32 minutes for for uh refinancing we will try and see if we can get a longerterm bond because a three-year tenure uh uh we can 32:08 32 minutes, 8 seconds do but we are just uh going to take a decision about that in terms of economics of it uh because it requires you to short uh refinance at a shorter 32:16 32 minutes, 16 seconds interval. uh in terms of fee refin the uh repayments come up there is no uh payment which is not backed by a 32:23 32 minutes, 23 seconds refinancing sanction in place. Uh so we have refinancing sanctions in place for uh whatever is uh coming up for refinance. 32:32 32 minutes, 32 seconds Got it sir. Thank you. Thank you. 32:36 32 minutes, 36 seconds Thank you. The next question comes from the line of Kan Jen from Aendas Park. Please go ahead. 32:48 32 minutes, 48 seconds Mr. Kaitton, you're not audible. Hello. Hello. Hi. Good afternoon, sir. Can Am I audible now? 32:56 32 minutes, 56 seconds Yes, sir. 32:58 32 minutes, 58 seconds Yeah, thank you. Uh uh sir, it's a follow up for the first question. Uh there was a media article saying that uh 33:04 33 minutes, 4 seconds out of the 93 gawatt of capacity awarded in FI24 and 25 42 gawatt uh is still 33:12 33 minutes, 12 seconds pending to be sign BPF is pending to be signed and uh they are planning to cancel these awards and rebid these awards. How do you think this will 33:20 33 minutes, 20 seconds impact the industry and how does it impact our projects? Are these only solar projects which they will cancel or 33:27 33 minutes, 27 seconds even the complex and FDR projects are uh are in the risk of getting cancelled? 33:34 33 minutes, 34 seconds Right. Right. So you're right. Uh so uh basically their target is uh primarily the solar projects which have been 33:42 33 minutes, 42 seconds bidded uh and and because they were bids uh very long back also and like you uh you know that the government has come up 33:50 33 minutes, 50 seconds with guidelines that uh no project should come up without storage uh on a central bid and that is no longer happening because storage is now a key 33:58 33 minutes, 58 seconds part of all uh the upcoming builds. So in terms of the uh take up at the states uh of these capacities uh so there has 34:06 34 minutes, 6 seconds been lot of traction in the last 3 to six months about uh about the improvement in the PPA signing like u 34:15 34 minutes, 15 seconds SEI has effectively less around six six and a half gawatt of uh uh PPA left and same uh and the status with uh others 34:24 34 minutes, 24 seconds are also uh kind of so this 42 gawatt may have gone down um I think if you uh look at sub numbers they would have gone 34:32 34 minutes, 32 seconds down and the other thing is u uh the regime under which they have been done that is also uh sometimes very uh the 34:40 34 minutes, 40 seconds states also like that that what plant is coming up with what timeline it allows them to give IoT a favor or not. So uh these and and and and if you look at it, 34:49 34 minutes, 49 seconds these are significant commitments for the state. Each of these projects uh uh will will have a revenue of at least $und00 million or something if you look 34:57 34 minutes, 57 seconds at the overall bid and maybe in some cases more than $200 million if you look at a one and a half two week award bid. So significant decisions for the state. 35:05 35 minutes, 5 seconds Of course the bids uh were done in a quick time and of course uh the inventory clearance takes time. uh but uh like the mandate from the government 35:12 35 minutes, 12 seconds is to for the states to make a decision uh and and of course if there is no demand let's say if somebody is saying that uh they don't want to buy a plane 35:21 35 minutes, 21 seconds solar right uh they they basically have no demand for plane solar because uh if they had uh surplus solar in some states they will basically but some states 35:30 35 minutes, 30 seconds still have demand uh you see some of the states are not rich in uh renewables themselves and they have uh some shortage and of course they are looking 35:38 35 minutes, 38 seconds at some builds where they call batteries in their state at each subsession. So we we are quite hopeful that this will find takers. It's a matter of time and of 35:47 35 minutes, 47 seconds course it's a matter of government policy um uh whether they uh I think each uh RIA will take their own decision 35:54 35 minutes, 54 seconds in terms of uh each PPA. So uh it will not be a very um uniform that out of 40 36:02 36 minutes, 2 seconds 20 or something the the the basically for a government the decision is about not letting the connectivity go waste. 36:08 36 minutes, 8 seconds So all this is coming up from the point of view of if let's say somebody sitting with an LOA their u dates have expired 36:16 36 minutes, 16 seconds for that uh connectivity but still they are hanging on that to that LOA neither building the plant. So that is a scenario government effectively wants to 36:24 36 minutes, 24 seconds avoid as per my reading and that is something which you will see uh most likely this will converge towards. So uh 36:31 36 minutes, 31 seconds not to basically uh wherever there is a dialogue going on wherever there is a probability of something happening I 36:39 36 minutes, 39 seconds think the time will be given uh and wherever somebody's putting up a plant uh in anticipation and there is a fair progress towards building the plant those will be allowed to continue uh and 36:48 36 minutes, 48 seconds and there will be uh so so that that's how we are thinking about it. 36:52 36 minutes, 52 seconds Understood. uh just just in our under construction uh uh projects uh these there are two solar projects for which I 37:00 37 minutes think PBA has not been signed uh one is ACME sigma Ora and ACME Omega Ora uh 37:07 37 minutes, 7 seconds this is 300 megawatt one with with NTPC and one with SJVN uh uh what is the status on these projects one of these 37:14 37 minutes, 14 seconds project is not there in the current presentation uh are these at the risk of cancellation sir so this NTPC project I think we had 37:22 37 minutes, 22 seconds upgraded did uh couple of months back that uh it was done in a pooling mechanism with NTPC uh I think there was 37:30 37 minutes, 30 seconds uh we had uh announced through the stock exchanges also. So that project uh because that pooling scheme has been cancelled by ministry of uh projects. 37:37 37 minutes, 37 seconds Basically they were pulling thermal with the renewables the NTPC itself was uh doing that on their own plants but I think that is under litigation with 37:45 37 minutes, 45 seconds Bengal. So that project is of course uh that is why uh uh uh that scheme itself is not there and that we had announced a 37:52 37 minutes, 52 seconds couple of months back but that because that's a special case that 2.52 with SMA that is under consideration because that is under consideration with some states 38:00 38 minutes uh which need that because it is the most competitive tariff in terms of the solar now the decision is how they use that solar is up to state. So some of 38:09 38 minutes, 9 seconds the states have shown interest. Uh if you notice uh you can basically track these all uh PPA things through tariff filings. So if you look at Punjab right 38:18 38 minutes, 18 seconds Punjab tariff filings uh in in the various regulatory commission. Understood. Understood. Understood. 38:23 38 minutes, 23 seconds So so you will get to know which all states are signed which all states are what tariffs. So if you look at this specific solar site you will look at 38:31 38 minutes, 31 seconds Punjab which has recently bought a 2 gawatt of solar right and they want they shows that they can want more. So they 38:38 38 minutes, 38 seconds are putting it up to the regulatory commission. So because it's a multi-stage process. So some states have some like Punjab as a particular demand. 38:45 38 minutes, 45 seconds Even in summer they need peak power for the agricultural load. So uh so so uh there are some states specific states 38:53 38 minutes, 53 seconds which need that power. That is why is trying is looking at uh and and some states have called bids like Madhya 39:00 39 minutes Pradesh was considering it. They have called uh and they have fin. 39:07 39 minutes, 7 seconds But what happen is sometimes they call their own bids. So so it is it is a function of each state. So I would not say uh this is a low probability. This 39:14 39 minutes, 14 seconds can get signed. Uh we have to go and uh it's a state-by-st state situation. 39:20 39 minutes, 20 seconds Understood. Uh just just the last question bookkeeping question on capex. 39:24 39 minutes, 24 seconds I think we've spent around 1,400 crores in first half. Uh our target was at around 12,000 to 14,000 crores. Are we on track uh for that at capex? 39:34 39 minutes, 34 seconds You see uh we we have ordered uh batteries uh like we told you we've ordered around 5 hour of batteries. So 39:41 39 minutes, 41 seconds LTS have been open you can't account for the capex uh in the uh balance sheet until the uh the goods have arrived. So 39:48 39 minutes, 48 seconds uh it is very very uh lumpy uh like the batteries arrive you will see this capeex uh doubling or increasing uh 39:55 39 minutes, 55 seconds because a battery is typically uh around a crude or so uh once it's fully installed uh in terms of the capex. So 40:03 40 minutes, 3 seconds uh so 5,000 odd crores of capeex will be done uh when we have done with these five year of batteries which are coming up in phases starting from January 40:11 40 minutes, 11 seconds onwards. So 5,000 crores on batteries you can say the modules of course are the last item to come. They are typically uh 50 to 60% of the overall 40:20 40 minutes, 20 seconds capex now with Indian modules. So that is also lumpy right uh because uh that uh like uh the plants which is getting 40:28 40 minutes, 28 seconds commissioned in June you will see that modules start coming in uh January to February there uh so modules um for you 40:36 40 minutes, 36 seconds can say around 1 one and a half uh gawatt which is uh targeted around uh June so you will see that um that will 40:44 40 minutes, 44 seconds again have a significant kex on them so 12,000 crores may get split to June uh but uh I think we are by and large there 40:52 40 minutes, 52 seconds uh in terms of the capex plan and we have uh given orders which are in uh sync with the 12,000 crores uh the delivery timelines are on track like 41:01 41 minutes, 1 second battery has got free phone uh like I said in the connectivity answer that uh uh a quarter of connectivity uh delay 41:09 41 minutes, 9 seconds may be there so a quarter of kex delay may be also there at max understood thank you and all the best sir thank you 41:17 41 minutes, 17 seconds thank you the next question comes from the line of punit from HSBC. Please go ahead. 41:26 41 minutes, 26 seconds Uh yeah, thank you so much uh for the opportunity. My first question is you talked about division of transmission between solar and non-solar hours. Uh 41:34 41 minutes, 34 seconds how are you trying to use the non-solar part of it? If you can talk a bit more can you use it with the existing plants or will you have to put up additional capacities? 41:45 41 minutes, 45 seconds Right. Right. Right. Then thanks a lot for the question. So uh uh see uh the non-solar connectivity is a is a very 41:52 41 minutes, 52 seconds significant uh GNA amendment uh which has come uh and it is basically aimed at utilizing the uh connectivity which is 42:00 42 minutes operational but not fully utilized uh because of the intermittent nature of renewable and because of let's say 6 to 8 hours of operation of solar. So it 42:08 42 minutes, 8 seconds allows you to uh basically uh put up a plant uh a pure uh plant which generates during non-solar hours. So you can put 42:17 42 minutes, 17 seconds up solar there uh and you can put up batteries there uh uh to charge uh the solar is charging that battery and you can basically discharge during any of 42:25 42 minutes, 25 seconds the non-solar hours and you can also sell that solar output uh after let's say even the solar you have put up to 42:33 42 minutes, 33 seconds charge battery that can also supply uh through that connectivity uh if there is a room available in that connectivity because the solar goes like a cinosidal 42:42 42 minutes, 42 seconds wave so so you have uh that is a non-solar connectivity you can use the output of that solar when you're not charging the batteries to supply through the grid uh through that connectivity. 42:51 42 minutes, 51 seconds So the a basically uh to use the connectivity to the maximum possible extent uh and and that is where these guidelines really help and also they 43:00 43 minutes have allowed you to uh charge it from the the batteries from the grid. If somebody doesn't want to put solar to charge the batteries they can draw they 43:07 43 minutes, 7 seconds can draw power from the grid. uh they they are allowed through this uh mechanism that has also been done in this amendment like we uh mentioned in 43:14 43 minutes, 14 seconds the introduction. So these are the ways in which you can use connectivity. 43:19 43 minutes, 19 seconds Okay. But uh for that you will need to put up additional solar plant. There is no way you can use the existing cap solar plants because you overbuild and 43:28 43 minutes, 28 seconds optimize that room is not possible in this. Is it fair to resume that? 43:32 43 minutes, 32 seconds Uh yeah so you can use the you can install batteries for the existing solar plant utilization. uh what you can do is let's say if you have a u 300 megawatt 43:42 43 minutes, 42 seconds plant right and if you in some are uh and you donate more than 300 megawatt because of let's say excess utilization 43:48 43 minutes, 48 seconds and because of let's say uh if you have some sort of uh curtailment or some sort of situation where your power is not getting utilized then what you can do is 43:58 43 minutes, 58 seconds uh take a counterparty approval and uh then supply that excess power uh into the battery uh and that is uh that is 44:05 44 minutes, 5 seconds also allowed basically let's say Let's say for one hour of the day you generate more than 300. So that power can go to 44:12 44 minutes, 12 seconds the battery and that power can basically you can sell outside the PPA also. So that is allowed. Of course uh you need 44:19 44 minutes, 19 seconds to be going above the rated capacity to do that because still that rated capacity there is a right of first refusal with that counterparty. 44:27 44 minutes, 27 seconds Ah okay okay understood. And just I want to clarify just I want to clarify that clipping if your question 44:34 44 minutes, 34 seconds was whether the clipping power can be charged. Yes, clipping power can be charged but you have to take NOC from the uh existing uh PPA holder 44:43 44 minutes, 43 seconds and you have to supply it to the PPA holder at the same price uh this clipping power or can you supply it at budget price also? You don't need to you 44:51 44 minutes, 51 seconds don't need because it's a clipping power. You can charge the battery and supply it the evening to the market or 44:59 44 minutes, 59 seconds any other they don't have a right over 300 megawatt plus but of course you need to apply to them. Uh as for PPA they they 45:08 45 minutes, 8 seconds have a right of only till the rating capacity. 45:11 45 minutes, 11 seconds Understood. And secondly you talked about you know GST reduction also potentially benefiting. Are any discoms coming back and asking for a reduction or or that's not being discussed at all? 45:23 45 minutes, 23 seconds No, for the uh see that change in law is goes without saying that any uh benefit you get you have to pass it back uh of course uh depending on the regulations. 45:33 45 minutes, 33 seconds So that we are talking more about the demand uh perspective that it gives renewable image over thermal or any other source uh because they are large 45:41 45 minutes, 41 seconds concept but renewable have got this advantage of a significant BC reduction. 45:45 45 minutes, 45 seconds So wherever states are thinking about their future capacity expansions they will have more reason to buy or enable so in that context this GSC helps and of 45:54 45 minutes, 54 seconds course it helps to uh uh reduce the upfront capex but of course your tariffs will be adjusted for any BSC reduction that's the uh so uh in terms of wherever 46:03 46 minutes, 3 seconds the PP allows so uh that that uh it's a future benefit it's not a current benefit no just to clarify no just to clarify 46:13 46 minutes, 13 seconds all our existing PPS right which is getting implemented We have to pass on this benefit to whichever is implemented in the regime 46:21 46 minutes, 21 seconds in the in the 5% regime we will pass on that benefit to the customer. 46:27 46 minutes, 27 seconds Is it automatic pass on or will the discom have to apply for that change in law will have to apply uh discom 46:35 46 minutes, 35 seconds uh will have to apply? We we have been in touch with this. So it is basically as for the uh I think there is some technical thing uh where uh the 46:43 46 minutes, 43 seconds currently the disform uh is not mentioned in completely transmission is mentioned uh because it is flowing from from Bing Island but that's a technical 46:50 46 minutes, 50 seconds point. So uh but as far as the regulations allowed you will have to give that change. 46:56 46 minutes, 56 seconds Understood. And lastly on the new capacities that you've set up in last one year what kind of COF have you experienced uh for your solar invent? 47:08 47 minutes, 8 seconds So uh our planted uh sinker right uh um adjusted for cailment uh it is it is uh 47:15 47 minutes, 15 seconds doing uh excellently well and they are done using domestic module. So of course this is our first plant uh using domestic module. So we have been doing 47:23 47 minutes, 23 seconds uh in the in the uh let's say in the June quarter um 30% u plus cus and of 47:31 47 minutes, 31 seconds course um uh in the wind uh we have installed wind also like you know so uh we had a very good quarter on the um on 47:39 47 minutes, 39 seconds the on the uh monsoon quarter and of course the second quarter was a normal quarter so um we are on um uh we are on 47:47 47 minutes, 47 seconds uh triage for our business plan so uh on the win side of course it's early sunny days because we have 78 megawatt only of win uh so we are yet to see the full 47:56 47 minutes, 56 seconds year uh but by and large as per our predictions so in terms of if you can talk in terms 48:02 48 minutes, 2 seconds of bit of you know P90 P7 you sure but if you have further questions please 48:10 48 minutes, 10 seconds rejoin the queue I'll join no worries thank you thank you so yeah so so solar is uh close to P50 48:18 48 minutes, 18 seconds uh solar is close to P50 uh wind is also around 375 but the wind is early days because we are yet to see uh the 48:26 48 minutes, 26 seconds seasonal because the seasonal element is very high in mid uh so of course the expectation in the monsoon season is quite high and it delivered uh we are 48:34 48 minutes, 34 seconds yet to see only uh let's say non-monsoon season so uh till now it is it is around 375 48:43 48 minutes, 43 seconds the next question comes from the line of Mortuda Ariala from Kotuk securities please go ahead 48:50 48 minutes, 50 seconds yeah hi sir I just wanted to reconcile um I think my question sort of answered uh you talked about 720 megawatt of project wins but when I look at the 48:59 48 minutes, 59 seconds change in size of portfolio it's only 420 I'm guessing that's to do with the NTC300 which is uh taken off from the 49:06 49 minutes, 6 seconds project portfolio right you are correct yeah sure thank you so much 49:16 49 minutes, 16 seconds thank you the next question comes from the line of Rogesh Patell from Dalat Capital. Please go ahead. 49:24 49 minutes, 24 seconds Thanks for taking my question sir. as you explained the capex details for FI26 uh but can you give us some funding 49:32 49 minutes, 32 seconds details in terms of the date and equity portions for FI26 capex and next year also based on your the operating cash 49:39 49 minutes, 39 seconds flows right so uh in terms of the capex like uh we had a target of 12,000 crex uh 49:48 49 minutes, 48 seconds like we uh discussed so uh all of our capex uh is is uh uh between 7525 to 49:55 49 minutes, 55 seconds 8020 debt equity. Uh lately we have been getting 8020 and debt sanctions that u uh but typically historically that's 50:03 50 minutes, 3 seconds been 7525 uh debt equity. So uh for a 12,000 cr it will be 9,000 cr debt and 3,000 cr equity and on 2080 it will be 50:11 50 minutes, 11 seconds basically 2,400 cr equity and uh you can say around 10,000 um odd uh from from 50:17 50 minutes, 17 seconds debt. So that's the uh that's the basic uh uh breakup of each project and of 50:24 50 minutes, 24 seconds course we have the debt um uh 80% of our uh signed PP projects uh have got uh loan documents done ready to disperse 50:33 50 minutes, 33 seconds kind of debt in some cases we have draw the first dispersement most cases we have taken the first dispersement and uh the rest of the 20% uh where the 50:42 50 minutes, 42 seconds timeline is 27 and um we we are getting the sanctions done in next quarter or so Uh so uh that's the broad uh number on 50:51 50 minutes, 51 seconds the capeex side like we mentioned that uh bulk of the capeex is uh uh is done when the LC's are open let's say for 50:59 50 minutes, 59 seconds batteries we have done the capex uh to extent we have uh got the batteries LC open now we have also uh wherever the 51:07 51 minutes, 7 seconds modules you do four to 6 months before commissioning so uh let's say starting December January you will get modules at the site also so it's back ended it 51:15 51 minutes, 15 seconds helps us to uh reduce the interest during construction component uh getting the capeex done uh at the uh at the uh 51:22 51 minutes, 22 seconds the getting the uh and also it helps you to deliver just in time uh in terms of the uh equipment. So some of the long lead equipments like transformers the 51:31 51 minutes, 31 seconds GIS they have been opened long back and they are getting delivered earlier also but some of the equipment which is available in plenty and which contributes a large let's say turbines 51:40 51 minutes, 40 seconds and all uh they they come just in time let's say three to four months before the target cod and of course uh the whole uh execution is uh planned around 51:49 51 minutes, 49 seconds that just follow up on that side considering the 12,000 cr kind of a capex in FY26 51:56 51 minutes, 56 seconds our operating cash flows are such a strong enough to support the 12,000 cr kind of a cash flow. In that scenarios, 52:04 52 minutes, 4 seconds we will utilize our cash of 3,000 cr which are already in the uh balance sheet. But for next year from where we 52:12 52 minutes, 12 seconds will get the equity portion because the next year also in F27 we are planning a 12 to 30,000 cr kind of a capex and to 52:20 52 minutes, 20 seconds manage that 30% or 25% of the equity to fund that capex. So just wanted to understand on that side if you could little bit elaborate on that side. 52:30 52 minutes, 30 seconds Sorry. So see uh uh like you said we have that uh cash on the balance sheet for the current capex. We have undrawn 52:38 52 minutes, 38 seconds uh undrawn uh securitization proceeds which is the debt proceed the refinancing proceeds of around uh 1,000 52:45 52 minutes, 45 seconds uh odd crores which we have not drawn and there are some refinancing coming up which will add another thousand cr to that. So uh you know when the project 52:53 52 minutes, 53 seconds gets operational and you are going from a 9 9 and a half% rate to 8% rate it leads to uh the uh the securitization or 53:03 53 minutes, 3 seconds or a refi proceeds getting added to that project and then to add to this sort of number we have uh the u you see the 53:10 53 minutes, 10 seconds annual package depreciation right uh which is uh half year we done around 275 to 260 kind of numbers uh so if you 53:18 53 minutes, 18 seconds analyze it that is the annual cash flow region right on the uh on the uh this side and 53:24 53 minutes, 24 seconds as you do uh let's say 8 to 10% margin which is uh on the EPC side uh that will also generate some cash flows uh from 53:33 53 minutes, 33 seconds the uh from that uh organic uh cash flow generation uh plus of course the debt reduction will further the interest rate 53:41 53 minutes, 41 seconds reduction will further aid to that uh cash flows so uh and and in terms of the capex itself uh right the 12,000 cr 53:49 53 minutes, 49 seconds number will allow us to do more projects uh because the effectively the rates of uh uh the the the uh the prices of the 53:57 53 minutes, 57 seconds things have reduced in terms of uh battery in terms of uh uh solar and of course we have shifted to solar heavy configuration like we have told you 54:05 54 minutes, 5 seconds earlier. So that has also reduced the capex required to be done. So 12,000 cr number will get us to a fairly higher 54:12 54 minutes, 12 seconds capacity as compared to uh the the earlier. So uh uh so we think that in terms of the uh equity draw down uh 54:21 54 minutes, 21 seconds because of uh uh and the battery uh like we mentioned 1 gawatt hour will give us around 170 cr of cash flow. So uh that 54:29 54 minutes, 29 seconds is another uh uh early sort of uh revenue generation which will help us improve the numbers we told you from the past profitability. 54:38 54 minutes, 38 seconds I think I would like to also just a minute I would like to also add it that this year most of the expenses what we have done is we have done through 54:46 54 minutes, 46 seconds equity. So out of 12,000 3,000 crores was the equity. I think initial investment what we have done is all 54:53 54 minutes, 53 seconds through equity. So technically what you see 3,000 is left in this one only the small portion of that will be used in these project and uh the rest will be used for the next year project. 55:05 55 minutes, 5 seconds Okay. Okay. And the last one, other expenses have gone up sharply and other income was also higher. Any any thoughts on that side? 55:14 55 minutes, 14 seconds Uh right. So uh the other income uh we had a hedging uh uh gain uh which which contributed uh because we had hedged for 55:22 55 minutes, 22 seconds batteries which have now started dispatching. So there was a gain uh on the hedging side which has contributed to uh the other income increase from the 55:32 55 minutes, 32 seconds last quarter to this quarter. uh so that is the reason for uh the other uh income on the other expenses side um uh I think 55:41 55 minutes, 41 seconds it is the uh increase in the esops and other things which have led to that. Thank thanks a lot sir and best of luck. 55:48 55 minutes, 48 seconds Thank you. 55:50 55 minutes, 50 seconds Thank you. The next question comes from the line of Akash Ma from Canada HSBC life. Please go ahead. 55:59 55 minutes, 59 seconds Yeah. Hi. Uh so I just wanted to understand on the curtainment front uh I just want to clarify actually that is it 56:07 56 minutes, 7 seconds only related to uh I mean the uh is it related to demand? Is it related to the 56:14 56 minutes, 14 seconds uh uh I mean the transmission lines not being available on uh time or uh I mean 56:21 56 minutes, 21 seconds and what kind of capacity is exposed to such issues going ahead and in the current quarter last quarter gone by 56:30 56 minutes, 30 seconds right so see the curtailment wherever you have seen is only because of transmission line uh there is uh because 56:37 56 minutes, 37 seconds in all the uh all the PPAs uh there is a must clause for renewable So uh wherever you have got a long-term 56:45 56 minutes, 45 seconds open access you are uh you have a legal right to get the full uh evacuation or full payment for your uh power which we 56:52 56 minutes, 52 seconds have generated. So uh what happens is when the line is let's say the our seeker plant which we mentioned uh got 56:59 56 minutes, 59 seconds commissioned uh uh right in June. So the timeline for that line was around September uh from the power grid and it 57:07 57 minutes, 7 seconds got stretched to uh December now. uh so so it is it is on the delay of that the last mile uh connectivity because the 57:15 57 minutes, 15 seconds land prices in Delhi region uh were was uh asked to be higher than before uh and there was inex there so so uh that led 57:23 57 minutes, 23 seconds to the prices of that uh ro or a land parcel in the uh transmission line swalling in the Delhi region uh net 57:31 57 minutes, 31 seconds delay in that so so it is mostly because of transmission line and only project which we are impacted is uh uh is is 57:38 57 minutes, 38 seconds this uh CE project and that is because of uh early commissioning and we are better off doing it early commissioning than not we do the maths are we better 57:47 57 minutes, 47 seconds off or not and then uh we are overall better off doing it early commissioning uh of course uh it will u it will have 57:54 57 minutes, 54 seconds an impact of uh one and a half uh 2% on the Indian revenue uh but that's that's on an overall sense beneficial because 58:02 58 minutes, 2 seconds of the commission so I mean go ahead so if commission if on the PPA timelines and obviously 58:10 58 minutes, 10 seconds there's no transmission uh availability because of some reason we get compensated but in this case because of early commissioning we won't be getting 58:18 58 minutes, 18 seconds compensated right I mean okay in uh early commissioning also see if you get a LTOA uh then you are within 58:26 58 minutes, 26 seconds the rights in the STA uh of course uh you can ask for compensation but uh that is dependent on your the merits of the 58:34 58 minutes, 34 seconds case but LUA you are 100% likely to win the case in SUA It is the the precedents 58:40 58 minutes, 40 seconds uh are yet to be established. So uh that is what uh we of course try we of course try but there are no precedents uh 58:48 58 minutes, 48 seconds currently because it is a new sort of uh case. Uh so we will let you know when we get a positive uh hearing on that but also 58:57 58 minutes, 57 seconds so how we typically plan is because it was a very short uh uh it was a June 25 uh uh bid where you had to commission 59:05 59 minutes, 5 seconds projects with June 25. So it was a you can say a one-off uh sort of bids where the the gap between PPA and commissioning was very short and overall 59:13 59 minutes, 13 seconds it made sense to commission it. Uh but typically you don't uh commission until you have the LPOA. So that's that's where I was saying that this is more of 59:21 59 minutes, 21 seconds an exceptional situation than a normal situation but you get uh in that case you get the full damage. Uh in SEO there 59:28 59 minutes, 28 seconds we are yet to see the Sure. I think that that's quite helpful. Yeah, that's it for my side. Thank you. 59:36 59 minutes, 36 seconds Thank you. 59:37 59 minutes, 37 seconds Thank you ladies and gentlemen. Due to time constraint, we'll take that as the last question for today's call. I would 59:45 59 minutes, 45 seconds now like to hand the conference over to Mr. Rupesh Sanank for closing comments. 59:52 59 minutes, 52 seconds My solar holding management for giving opportunity to host this call. We also thank all the investors and the anist for joining this call. 1:00:04 1 hour, 4 seconds On behalf of Acme Solar Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.