Adani Energy Solutions Ltd — Q4 FY26

Adani Energy Solutions Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gRMVT0lDALw Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 NFI26 earnings conference call hosted by Adani Energy 0:09 9 seconds Solutions Limited. From the AESL side, we have the following on the call has main speakers. Mr. Kandar Patel CEO, Mr. 0:18 18 seconds Kungjala, CFO, Mr. Prasant Sony, head finance. 0:24 24 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:33 33 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone phone. 0:41 41 seconds I now hand the conference over to Mr. 0:43 43 seconds Prashant Sony from AESL. Thank you and over to you Mr. Sony. 0:49 49 seconds Thank you. Thank you Ryan. So thank you and very good day to everyone. A warm welcome to the Q4 FI26 earnings call 0:57 57 seconds from AESN. We hope you had an opportunity to review the earnings presentation and final results that we 1:04 1 minute, 4 seconds shared on our website. To outline the flow of today's call, we will begin with the opening remarks from our CEO Mr. 1:11 1 minute, 11 seconds Kand Patin following which we will open the floor for Q&A. The call will conclude with closing remark from CFO 1:18 1 minute, 18 seconds Mr. Kungjala. For those who wish to ask question, we request you to start joining the question queue a little in advance to help us manage the Q&A 1:26 1 minute, 26 seconds efficiently. Thank you. And with that, I would like uh to hand over to Mr. Kand Patel for his opening statement. Thank you. Over to you sir. 1:37 1 minute, 37 seconds Good morning everyone and warm welcome to all investor and 1:44 1 minute, 44 seconds analyst friend on this call for Q4 and FYI 26. of Adani energy solution. 1:53 1 minute, 53 seconds Well, you must have received all the material in terms of our accounts and 2:00 2 minutes uh financial uh performance and also operational performance. 2:06 2 minutes, 6 seconds But I would like to highlight few uh points uh that are very uh distinguished 2:14 2 minutes, 14 seconds point uh which probably may not have uh been emerged out very clearly from a finance. 2:22 2 minutes, 22 seconds So obviously this year besides many other project and we have commissioned that Mumbai HBDC in project 2:30 2 minutes, 30 seconds which is uh not only in uh regulatory asset based project uh rep based project 2:37 2 minutes, 37 seconds but it is also very very important for uh Mumbai transmission uh capacity augmentation. 2:45 2 minutes, 45 seconds It will also help AML in integrating more and more renewable uh uh for our distribution company. 2:55 2 minutes, 55 seconds The another significant milestone that we could complete achieve this year was deployment of smart meter on the ground. 3:04 3 minutes, 4 seconds While we we anticipated or we projected that we will be doing about 70 lakh mu uh this 3:12 3 minutes, 12 seconds financial year, we surpassed that target and we ended up installing about 83 lakh mum on the 3:21 3 minutes, 21 seconds ground. That is pro probably the highest number that any operator has achieved uh not only in India but probably also on a global basis. 3:33 3 minutes, 33 seconds While we continue to do do the all these project execution on the ground there is a significant shift or change that is 3:42 3 minutes, 42 seconds happening at AESL level. 3:46 3 minutes, 46 seconds You must have noted that the capex or AML consolidated capex uh 3:54 3 minutes, 54 seconds transmission distribution smart metering has increased significantly over a period of time. uh we have now reached to close to 15,000 cr capex. 4:05 4 minutes, 5 seconds We will continue to improve the capex and uh reach about 20 cr capex uh this year. 4:14 4 minutes, 14 seconds But while we are improving capex you also must have noted that there is a significant improvement uh that is happening on a credit rating side. 4:24 4 minutes, 24 seconds So now most of our assets are AAA plus or AAA uh and there is a significant 4:31 4 minutes, 31 seconds improvement in credit rating while we are uh scaling up the capex. So usually 4:38 4 minutes, 38 seconds it becomes uh even challenging to maintain the credit rating while you are uh 4:45 4 minutes, 45 seconds significantly stepping up a capex but we have done it otherwise we have improved the uh credit rating and consequently our interest cost is also going down. 4:58 4 minutes, 58 seconds Now even in the challenging time volatile time if you are in a position to improve credit rating and uh uh 5:06 5 minutes, 6 seconds reduce your uh interest cost that's a significant achievement from ASL side and that would 5:13 5 minutes, 13 seconds mean that uh incremental return for shareholders. 5:21 5 minutes, 21 seconds Now similarly uh 5:27 5 minutes, 27 seconds with HBDC uh uh commissioning and uh the regulatory asset and uh based capex that we continue to do at AML. 5:39 5 minutes, 39 seconds Now when we took that AML and the RA was about 5,400 cr today you must have seen 5:46 5 minutes, 46 seconds that it has reached to 10,500 plus cr similarly in in uh transmission as well 5:54 5 minutes, 54 seconds uh the asset u rep based asset was about 10,000 K now we have added 7,000 K of uh 6:05 6 minutes, 5 seconds HBDC and we will continue to Make sure that proportion of 6:12 6 minutes, 12 seconds regulatory asset base and competitive asset base uh remains healthy and and that is driving our uh growth 6:21 6 minutes, 21 seconds and uh cash generation and with this um we have been able to 6:29 6 minutes, 29 seconds you know do the refinancing of our uh 500 million uh um uh bonds uh and that 6:39 6 minutes, 39 seconds we refinance from Apollo who is US uh uh insurance 6:47 6 minutes, 47 seconds investors. Now that gives you know confidence that even uh during this challenging uh uh geopolitical situation 6:56 6 minutes, 56 seconds we have been able to leverage our financial and operational strength and uh do the refinancing. 7:03 7 minutes, 3 seconds Similarly on a smart metering um uh we will continue to scale up our operation. 7:10 7 minutes, 10 seconds We we think that smart metering business is not limited to our contractual period but it is a perpetual one given the 7:17 7 minutes, 17 seconds industry structure. So uh we we believe that uh this opportunity is going to 7:24 7 minutes, 24 seconds continue uh even when those um uh existing concession expires. Maybe in 7:30 7 minutes, 30 seconds terms of expand uh extension or uh new bidding opportunities and with the with the capabilities that we have created uh 7:38 7 minutes, 38 seconds we certainly are in a much better um uh putting to take advantage of uh future opportunities. 7:47 7 minutes, 47 seconds Similarly on a transmission side as well uh this year we have improved uh the market share we have reached to now 7:54 7 minutes, 54 seconds almost uh 29%age of the project that went into bidding and there are about 1 lakh 50,000 cr projects already 8:03 8 minutes, 3 seconds identified uh for the bidding simultaneously as I mentioned uh we are scaling up our capability in uh uh uh 8:12 8 minutes, 12 seconds deploying capex on the ground and we will continue to do that with the improved interest cost and with the 8:20 8 minutes, 20 seconds improved capability of deploying capex we that will give us an opportunity to 8:26 8 minutes, 26 seconds capture larger amount of uh opportunity transmission opportunity in the market 8:34 8 minutes, 34 seconds on operational side as well we have been doing consistently well this year as 8:40 8 minutes, 40 seconds well the opportunity has has been uh 99.7. 8:48 8 minutes, 48 seconds Similarly, on a transmission side as well, distribution side as well, we have been consistently been able to reduce 8:54 8 minutes, 54 seconds our uh distribution losses. So, all in all, uh uh the distribution loss has already 9:01 9 minutes, 1 second reached to 4 4.2%age. In fact, we started with 8 and a half percentage and we have reached to this level. 9:09 9 minutes, 9 seconds The significant uh thing that is going to happen uh from a growth side besides transmission and smart metering would be 9:16 9 minutes, 16 seconds CNI segment. So we have started that operation. We are now closely about 5,000 megawatt of renewable capacity contracted. 9:25 9 minutes, 25 seconds We are already having about uh dozens of third party contrigating of about 1,400 megawatt capacity. 9:37 9 minutes, 37 seconds it will give us a great lever in uh capturing that market which has a huge potential including those data centers 9:44 9 minutes, 44 seconds coming uh uh coming up in India. So all in all the CNI will also become a one of the major growth driver uh in the next 9:53 9 minutes, 53 seconds year and we will have a detailed presentation on CNI in uh uh once we complete uh next financial year uh uh 10:01 10 minutes, 1 second and have this call again uh somewhere in May next year and we will lay out what are the uh kind of activity they have that we have been able to do it in CNI. 10:18 10 minutes, 18 seconds So all in all um in in all our segments uh that we operate uh whether it is transmission distribution, smart meters 10:26 10 minutes, 26 seconds or CNI uh we we see a great potential there uh great opportunity and since we 10:33 10 minutes, 33 seconds are improving capability of capex deployment and uh with a discipline in capital management and capex deployment 10:42 10 minutes, 42 seconds we We'll continue to uh capture those opportunities with this. I will uh hand it over to 10:49 10 minutes, 49 seconds Punjal for uh no I think we can now uh start the questions from the analyst of the invest. 11:01 11 minutes, 1 second Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:09 11 minutes, 9 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 11:18 11 minutes, 18 seconds requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 11:29 11 minutes, 29 seconds We take the first question from the line of Mohit Kumar from ICIa security. Please go ahead. 11:36 11 minutes, 36 seconds Hi. Good. Good afternoon. Good afternoon. 11:40 11 minutes, 40 seconds uh and uh thanks for the opportunity. My first question is that can you help us with your expectation for capex in FI27 11:50 11 minutes, 50 seconds and FI28 or three businesses separately? 11:59 11 minutes, 59 seconds Yeah sure. So uh uh we will have about 12:05 12 minutes, 5 seconds uh uh 22,000 cr of capex uh uh next year 12:12 12 minutes, 12 seconds uh of which uh transmission would be about 1,500 uh 15,500 12:19 12 minutes, 19 seconds distribution about uh 2350 smart metering about uh 3,900 12:27 12 minutes, 27 seconds and uh so these are the uh numbers. So we'll be around 21,000 uh between 21 to 22,000. 12:38 12 minutes, 38 seconds So this is for FI27 right sir. Is it possible to is it possible to share the FI28 or it's not possible as of now? 12:46 12 minutes, 46 seconds No no it is possible but that number will be little approximate but it will be around 23 uh 23,000. 12:53 12 minutes, 53 seconds So of that transmission would be about 20 uh 20,000 distribution again will be about uh 2,000 and smart metering given 13:02 13 minutes, 2 seconds the order book we are not assuming the additional one but given the order book it will be 1500 and whatever the additional order that will come will get added. 13:12 13 minutes, 12 seconds Understood sir. So somewhere between 22 to 25,000. 13:16 13 minutes, 16 seconds Understood sir. Uh my second question is sir and is it possible to share the expectation for capitalization or 13:23 13 minutes, 23 seconds commissioning in FI27 FI28 and can you just please sir help us uh uh understand 13:30 13 minutes, 30 seconds whether you have uh included uh the Mumbai HBDC completely in FI26. Is that a is that the right understanding? 13:40 13 minutes, 40 seconds Yes. So Mumbai the commission in FY 6 only in the last month. 13:48 13 minutes, 48 seconds Yeah. Completely 100%. Yeah. Yeah. 100%. Understood. 13:54 13 minutes, 54 seconds And and the capitalization number in FY27 would be about 21,000. 2122. 14:04 14 minutes, 4 seconds uh in FY28 uh it could be about uh uh 13,000 14:11 14 minutes, 11 seconds and and thereafter the capitalization will improve in especially in transmission because those HVDC project 14:19 14 minutes, 19 seconds that will start getting commission from FI29. 14:23 14 minutes, 23 seconds Understood sir. Thank you and all the best sir. Thank you. 14:29 14 minutes, 29 seconds Thank you. We take the next question from the line of Manish Otwa from Nirmal Bank Securities Private Limited. Please go ahead. 14:37 14 minutes, 37 seconds Yes sir. Thank you for the opportunity. 14:39 14 minutes, 39 seconds I have a question on the balance sheet leverage. So sir uh if you look at our cash flow for the year 36 we have a uh 14:46 14 minutes, 46 seconds operating cash flow of 10,000 almost 11,000 crores and we are having capex of 14,000 uh 431 crown. So 14:57 14 minutes, 57 seconds effectively all free cash flow negative 7,500 crores. So what is your view on the balance sheet leverage where we are 15:04 15 minutes, 4 seconds comfortable? Can you guide us on that function? That will be helpful for us. So that's from an operating cash flow. 15:13 15 minutes, 13 seconds So you would understand is that most of our assets we generally uh finance it uh in in the ratio of 70 to 13. So only the 15:23 15 minutes, 23 seconds equity portion is funded through the internal occurs. So balance is tied up through the debt. From that position we are fully comfortable to meet all our 15:32 15 minutes, 32 seconds existing capex requirements in transmission, smart meter and even distributor. 15:41 15 minutes, 41 seconds Thank you. We move on to the next question which is from the line of Duv Mucho. Please go ahead. 15:48 15 minutes, 48 seconds Uh yes sir. Thank you so much. Uh sir uh can you help me? what is the capitalization uh for fi 26 uh and if 15:56 15 minutes, 56 seconds you can also break it up between transmission uh what what is in transmission 16:02 16 minutes, 2 seconds so 26 is about uh 15,000 50,300 transmission is 10,260 16:11 16 minutes, 11 seconds distribution 1511 and smart metering 3556 okay sure and also also one accounting 16:21 16 minutes, 21 seconds thing is uh what would be a CWIP be in a normal accounting term uh at the end of FI26B overall overall uh console CWIP. 16:33 16 minutes, 33 seconds So uh so between the SC assets and the normal conventional assets so if you look at the financials the current CWIP 16:42 16 minutes, 42 seconds is around 25 53 cr uh which is for the nonse assets and for the currently we 16:50 16 minutes, 50 seconds are currently having SC assets of about I'll just give you the number because now the accounting has changed so it become a bit confusing. 16:59 16 minutes, 59 seconds Yeah. Yeah. Yeah. So SC assets is currently around 6,200 and the CWIP is around 2,500. 17:07 17 minutes, 7 seconds So broadly 8,000 K of CWIP uh and so just trying to you know uh combine the math and you're guiding for a 17:14 17 minutes, 14 seconds capitalization of about 15,000 KES in uh transmission uh in next year FI 27. So what we generally see is uh what your 17:22 17 minutes, 22 seconds CWIP is at the end of the year probably gets capitalized at the end of the next year the typical cycle in transmission. So but your guidance is uh much higher. 17:31 17 minutes, 31 seconds For example, for your transmission guidance is about 15,000 crores next year capitalization guidance. Uh and assuming all these for uh transmission, 17:39 17 minutes, 39 seconds that's about 8,000 crores. So I'm just trying to uh you know reconcile the math. 17:44 17 minutes, 44 seconds Yeah. But there would be a capex which will be incurred during the current financial year as well which will also get translated into capitalization. So 17:52 17 minutes, 52 seconds it I mean just to give you a perspective especially in transmission assets what happen is that certain types of transformers or certain types of 18:01 18 minutes, 1 second substations are generally procured during the end of the asset and that that gets capitalized immediately and 18:09 18 minutes, 9 seconds this is exactly what happened in case if you note in uh HVDC project as well. So it is just at the last period when you 18:16 18 minutes, 16 seconds procure heavy equipments which gets capitalized during that financial year and which does not generally form part 18:23 18 minutes, 23 seconds of CWIP or or your do the through next year also mean in 18:31 18 minutes, 31 seconds the current year we we plan to do a transmission capex of about 15 to 16,000 18:36 18 minutes, 36 seconds and 8,000 of this uh WIP and out of this total block we plan to capitalize about 1,400 uh 14,500 to 15,000. 18:49 18 minutes, 49 seconds All right. Sure. Perfect. answer uh two micro related questions is u in some of 18:56 18 minutes, 56 seconds the you know government uh documents uh the transmission committee meetings what we're seeing is um they've started to talk about batteries the cost the higher 19:05 19 minutes, 5 seconds cost of transmission particularly it seems the HVDC lines and they have started to compare it to batteries and all those um how should we see this is 19:13 19 minutes, 13 seconds it uh the cost becoming a challenge or the integration becoming a challenge or I mean why do you thought just trying to understand how do you how we seeing Yes. 19:23 19 minutes, 23 seconds No, obviously uh that debate is going on uh at at policy level as to how much of 19:30 19 minutes, 30 seconds transmission capacity that uh country should add because it also has a cost implication especially for renewable 19:37 19 minutes, 37 seconds project. So uh uh the uh uh the debate is that uh uh should we push as a sector 19:46 19 minutes, 46 seconds the installation of more uh colllocated BS uh base. So that uh transmission cost could be optimized. 19:55 19 minutes, 55 seconds But uh see what is happening is that that's a one leg of transmission but whatever electricity generated that also 20:03 20 minutes, 3 seconds has to get distributed and taken to the last mile uh uh to the end consumer. Now 20:10 20 minutes, 10 seconds uh in future what we see while uh the uh interstate transmission line 20:17 20 minutes, 17 seconds will continue to uh uh get uh crystallized and come into bidding. But 20:24 20 minutes, 24 seconds we we expect to see lot more activity from a state side because all those transmission corridor which are created or which are being created for taking 20:33 20 minutes, 33 seconds renewable energy to load center now those investments are required to be made at a state level to take it to last 20:40 20 minutes, 40 seconds customer. So we see lot of opportunity coming from state side as well. And you must have seen in last year uh there are 20:49 20 minutes, 49 seconds few utilities or state who has already started you know uh bidding for multiple project like Maharashtra, Rajasthan, 20:57 20 minutes, 57 seconds Uttar Pradesh and uh even Karnataka. So we see a lot of action coming from those state as well. 21:04 21 minutes, 4 seconds Mhm. Mhm. So basically uh just to understand this well u a larger portion of the ISTS uh evacuation is done now it 21:13 21 minutes, 13 seconds is more about optimization and the uh activity to a larger extent shifts towards the interstate in interstate network no I'm not saying that it is already 21:21 21 minutes, 21 seconds done it there will also be also the if we if we as a country we are in a 21:29 21 minutes, 29 seconds position to install base at a massive scale then probably that quantum might come down to a certain extent but it it is not completely done. 21:39 21 minutes, 39 seconds Yeah. Yeah. Sure. That way. Got it. And so last thing on the CNI u you mentioned about FIG or you have tied up and the data centerled demand that you can 21:48 21 minutes, 48 seconds cater. Uh just trying to understand uh it seems the government is also looking at state governments are looking at giving distribution licences to these 21:55 21 minutes, 55 seconds large hyperscalers. So how does it position us in that thing? uh I mean can they still come to you for that uh you 22:02 22 minutes, 2 seconds know roundthe-clock power or they do it themselves or I mean just trying to understand um uh our positioning then if they get the 22:10 22 minutes, 10 seconds so certainly the even even if they become a distribution lency they will have to source power and because their 22:17 22 minutes, 17 seconds requirement of power will be very very peculiar that is where we come in uh especially from power infra as well as 22:25 22 minutes, 25 seconds from uh supply side So now we we having having got capacity of solar wind as well as base with us. 22:36 22 minutes, 36 seconds We are in a the position to offer that kind of a solution to whether it is a customer or the uh dist uh dim 22:45 22 minutes, 45 seconds distribution license given to a customer. So essentially it remains a customer. 22:52 22 minutes, 52 seconds Okay. And this 5 gig all that you have tied up is um I mean you have freezed this capacity for yourselves and then you you you uh find your customers for 23:00 23 minutes example 1.54 you have already found and the remaining you will find it now correct correct correct got sure a great uh nice one will be 23:08 23 minutes, 8 seconds helpful to understand more in the CNA uh as as you shared about thank you so much thank you 23:17 23 minutes, 17 seconds thank you we take the next question from the line of Manish Somaya from Canerys Cher, please go ahead. 23:26 23 minutes, 26 seconds Uh, good morning. Uh, couple of questions. Uh, the first one is on smart metering. Uh, the installation rate was quite impressive in the fourth quarter. 23:35 23 minutes, 35 seconds So, I was hoping you could uh help us uh understand how we should think about 2027. 23:42 23 minutes, 42 seconds Uh, and also uh when I look at the book of business that you currently have, which is around uh 24.6 six million. If 23:50 23 minutes, 50 seconds you can just help us uh get a feel for let's say the next uh time uh you'll have an opportunity to 23:59 23 minutes, 59 seconds do more tenders and and when do you expect uh uh to uh for that number to meaningfully increase? 24:09 24 minutes, 9 seconds So uh uh uh money is uh so next year probably uh uh we'll be 24:18 24 minutes, 18 seconds doing about minimum about one uh cr meters. Uh having done 83 lakh meter in 24:27 24 minutes, 27 seconds the current year we are confident that we'll be able to install uh uh another 1 cr meter in the current 24:36 24 minutes, 36 seconds financial year. As far as next opportunity is concerned, you must have seen um when we started the concessions 24:43 24 minutes, 43 seconds were about uh 2.3 cr but now we we have reached to 2.5. Essentially there are two 24:52 24 minutes, 52 seconds ways of getting additional uh transessions here. One is that in existing contract itself uh it has fell 25:00 25 minutes to the 2.5.2.3 2.3 and uh the balance opportunity uh which remains in the market and uh is about 9 to 10 cr meter. 25:12 25 minutes, 12 seconds There are few state who are uh awaiting their approval from uh uh central 25:19 25 minutes, 19 seconds government under ads and those states are the Karnataka, Tamil Nadu. Tamil Nadu already has an approval. So now 25:28 25 minutes, 28 seconds they have to come out with a bidding process. Probably they will come out once their elections are over. So the 25:35 25 minutes, 35 seconds opportunity remains are Tamil Nadu, Karnataka whole state, Telangana whole state, Andhra Pradesh part, Gujarat part 25:43 25 minutes, 43 seconds and MP part. So these are the opportunity which are still pending in the market. 25:49 25 minutes, 49 seconds Okay, that that's super helpful. Um and then on the distribution side, uh was down about 14%, uh volumes were up, uh 25:59 25 minutes, 59 seconds losses obviously improved. Uh so maybe I was just hoping to get some color from you uh as to how we should think about 26:07 26 minutes, 7 seconds distribution uh um in fiscal 27 financial measure. 26:22 26 minutes, 22 seconds So uh uh we will continue to have that uh similar amount of capex in uh distribution. See distribution what what 26:31 26 minutes, 31 seconds is happening is that in AML we we continue to harden the asset. So 26:39 26 minutes, 39 seconds we continue to add about 1,500 to 2,000 cr capex every year and we are also making sure that our 26:47 26 minutes, 47 seconds tariff remains the same almost at the same level. Uh and that we have been able to do and we will continue to do by 26:55 26 minutes, 55 seconds improving operational efficiency. So effectively what we are doing is that all efficiency gains are transferred 27:04 27 minutes, 4 seconds for investor for a incremental return because we continue to add that rep. So it's a win-win for customer as well as 27:12 27 minutes, 12 seconds shareholders. So sales returns are improving but uh customer tar are remaining same and service levels are 27:19 27 minutes, 19 seconds also improving significantly and that's the reason why a ML has been rated number one distribution uh company in 27:27 27 minutes, 27 seconds the country since last um four years now and then just lastly on transmission um 27:36 27 minutes, 36 seconds I think you talked about the Mumbai HDC uh coming online for me If you can just help us quantify the 27:44 27 minutes, 44 seconds eBay contribution from some of the projects that have come on uh in fiscal 26 into uh fiscal 27 and then just uh 27:53 27 minutes, 53 seconds related question to that uh the permitting opportunity that you mentioned of uh rupee 1.5 billion 28:03 28 minutes, 3 seconds how should we think about the win rate as we model out 28:10 28 minutes, 10 seconds uh sorry man how should we think about the the in terms of uh the win rate for 28:18 28 minutes, 18 seconds uh the tendering opportunities that you have. 28:21 28 minutes, 21 seconds Yeah. Yeah. So correct a certain percentage. 28:26 28 minutes, 26 seconds So Manish currently we uh are about in fact we were about 20 25%age we have improved this year to close to 30%age. 28:38 28 minutes, 38 seconds So we will continue to maintain that market share between 25 to 30%age. 28:43 28 minutes, 43 seconds Uh uh while we can also increase market share but uh you know we we as I 28:51 28 minutes, 51 seconds mentioned we will make sure that we remain disciplined both in terms of capital management as well as uh capex 28:57 28 minutes, 57 seconds deployment. So that that is the uh uh area where we don't want to compromise. 29:05 29 minutes, 5 seconds So we will we will limit ourself to uh 25 to 30% and that will also be um 29:13 29 minutes, 13 seconds converted uh into amount it will be 40 50 odd,000 cr of new cap opportunity for us uh in a transmission itself. 29:24 29 minutes, 24 seconds uh and Manish to the first question this year uh the capitalization which has happened for transmission on fully 29:32 29 minutes, 32 seconds runate basis we will be able to add another 1,600 crores of IITA around 1,600 uh by those commissioning of uh 29:41 29 minutes, 41 seconds existing uh the the projects which have been commissioned in this financial year I'm talking about the the 1,600 is the 29:48 29 minutes, 48 seconds revenue number okay I'm not Just maybe for kungjan last question uh in terms of leverage with 29:56 29 minutes, 56 seconds capex going higher are we still comfortable with that four to four and a half times or uh should we expect that to inch a little bit higher? 30:06 30 minutes, 6 seconds No we'll continue to maintain that leverage in the ratio of around 4.5 to 4.7. 30:13 30 minutes, 13 seconds Okay. Thank you so much and good luck in 27. 30:22 30 minutes, 22 seconds Thank you. We take the next question from the line of Mohit Kumar from ICIS Securities. Please go ahead. 30:30 30 minutes, 30 seconds Yeah, good. Thanks for the opportunity once again. Uh so my question is on the uh on the Mumbai HPDC uh which you have 30:39 30 minutes, 39 seconds commission. How do you expect to book revenues in the F27? Will it be at uh lower project cost or in the sense it 30:48 30 minutes, 48 seconds will be booked at provisional tariff or it it will be booked at the full project cost. 30:57 30 minutes, 57 seconds So as you know this is a rap based project and once the tariff is approved by the regulator you are entitled to 31:06 31 minutes, 6 seconds start billing to the regulator. So currently uh the number is 1,300 outs uh which is 31:13 31 minutes, 13 seconds the full year tariff from the Mumbai HDC project which which we will start acrewing from next full next financial. 31:22 31 minutes, 22 seconds Understood sir. My second question is of course it was regarding HBDC pole 2 of Mumbai. We understand that of course the 31:30 31 minutes, 30 seconds state transmission uh committees had approved it right and recommended it to the empowered committee of of state. Uh have you heard 31:38 31 minutes, 38 seconds anything or anything on that and is it is it fair to expect that HBDC poll two will start working uh in this from this fiscal? 31:49 31 minutes, 49 seconds So the uh as far as HBDC poll 2 is concerned uh uh the evaluation at MEC 31:56 31 minutes, 56 seconds and STU level is going on. Uh we feel that Mumbai will required certainly required additional transmission 32:05 32 minutes, 5 seconds capacity but we can't commit currently because that's still under the evolution at NEC and ST. 32:13 32 minutes, 13 seconds Understood. Um my uh my second question is so can you help us the progress on the two HBDC projects which we are 32:21 32 minutes, 21 seconds working on right now in terms of percentage completion and could could you also address the ro challenges if 32:29 32 minutes, 29 seconds you're facing any so as far as uh uh 32:37 32 minutes, 37 seconds fatipur ba hdc is concerned the construction has already begun uh both at a substation and a line 32:45 32 minutes, 45 seconds And uh we we haven't faced any significant ro challenge as far as that 32:51 32 minutes, 51 seconds project is concerned. Uh as far as fat uh Kawa old is concerned we have finalized all the contract. Uh but the 32:59 32 minutes, 59 seconds construction has yet not started. It will start. So Kawa land is now already under a possession. uh land at uh uh old 33:09 33 minutes, 9 seconds we expect to get position uh uh from power grid in u uh maybe a month's time and once we have that we will start uh 33:17 33 minutes, 17 seconds construction at both the places the preparative work at uh uh Kawa has already started because that land is 33:25 33 minutes, 25 seconds already in possession and then uh we have already submitted those uh uh 33:32 33 minutes, 32 seconds proposals for uh uh environment and forest clearances because that will also 33:38 33 minutes, 38 seconds uh become a significant part. Uh we have already started applying for RO 33:45 33 minutes, 45 seconds permissions. So uh those uh compensation orders from state government. So currently it's it's progressing as per 33:52 33 minutes, 52 seconds plan. Uh you will see lot of action on ground on both the project in the current year. 34:01 34 minutes, 1 second Is it possible to share the percentage completion for Fatipur Badla? Uh how much percentage completed till date? 34:10 34 minutes, 10 seconds I don't have that number ready made but we we will send you. 34:14 34 minutes, 14 seconds No sir but most but it is safe to understand most of the capex will happen in F27 F28 for Fatipur BLA. 34:22 34 minutes, 22 seconds Yeah. So the the capex in Fipur BLA will start significant capex will start from current year. 34:30 34 minutes, 30 seconds Understood sir. My last question is sir is it possible to share the margin profile for the trading business uh 34:39 34 minutes, 39 seconds especially on the 1.5 gawatt and when do you expect the 1.5 gawatt to start contributing to the top line. 34:47 34 minutes, 47 seconds So the uh the 1.5 gawatt that we have already tied up the margins are in 34:54 34 minutes, 54 seconds excess of 50 pesa per unit raised we are still working so uh and once we ti tie 35:01 35 minutes, 1 second up that capacity either on a medium-term or long-term contract then those number will get crystallized. Uh currently we 35:08 35 minutes, 8 seconds are operating on a merchant market. U so and and that's depend on the market condition which is varying on a day-to-day basis. 35:17 35 minutes, 17 seconds Uh is it right to say that the margin profile currently is lower and you will improve once we start uh uh selling into into the mature market? Yeah, sorry. 35:25 35 minutes, 25 seconds Selling into the uh the the the long-term CNI market. 35:30 35 minutes, 30 seconds So uh I would not say it is lower but you will get more certaintity once you have a contract. 35:39 35 minutes, 39 seconds Understood sir. Understood sir. Thank you sir. That's very helpful. Thank you. Thank you. 35:46 35 minutes, 46 seconds We take the next question from the line of Shiram Kapoor from Jeff. Please go ahead. 35:52 35 minutes, 52 seconds Hi, thanks for the opportunity. Uh just had a a small bookkeeping question. So your operating operational aida for your 36:00 36 minutes uh smart meters business. So 9 months FY26 uh in the presentation show about 466 crores and uh for FY26 full year 36:08 36 minutes, 8 seconds it's showing as 452 crores. Though for the fourth quarter it's showing about 180 crores. So has there been some kind of restatement? 36:15 36 minutes, 15 seconds um you know in your operations at beta and if you could quantify that for the past three quarters like what would have changed uh in those numbers? 36:25 36 minutes, 25 seconds No. So the just that the operating aa is purely a function of the number of meters that gets installed. So from that 36:34 36 minutes, 34 seconds perspective every quarter that number will keep on increasing. So there is no restatement as such. is just that we 36:41 36 minutes, 41 seconds show both the numbers in our financials the uh indas numbers as well as the 36:48 36 minutes, 48 seconds non-ININ inds right I'm referring to the non-NINDS numbers itself uh your operational AIDA 36:54 36 minutes, 54 seconds in the 9 month of FI26 totally was 466 crores but your total full year FI26 is 37:01 37 minutes, 1 second 452 crores but uh the fourth quarter wasn't a loss right fourth quarter itself was 180 crores of operational so 37:08 37 minutes, 8 seconds that's what I'm understanding this then this number implies only about 270 kores in 9 month FI26 versus 470 kores that you mentioned in your 9 month 37:16 37 minutes, 16 seconds presentation that that's the kind of uh discrepancy I'm asking about if you could share clarify that 37:23 37 minutes, 23 seconds no so my operating a bit for the full year comes to around 593 crores for smart meter business and for the Q4 it 37:33 37 minutes, 33 seconds is 214 crores I'm referring to nonINDS numbers if you you know that that's I'm seeing the discrepancy that's why. 37:42 37 minutes, 42 seconds So I I'll have to check that as to from where you are getting 9 months number. 37:47 37 minutes, 47 seconds It's in your presentation the 9 months presentation. Um slide 10. We can we can take it offline that that's that's okay. 37:54 37 minutes, 54 seconds Um the second my next question is on the um this 1.5 uh trillion tender pipeline. 38:01 38 minutes, 1 second So is this entirely um an opportunity in the next 12 months or if you could give what the 12-month pipeline number would 38:07 38 minutes, 7 seconds be? So 12 month would be about uh 80 to 80,000 to one lakh cr depending 38:16 38 minutes, 16 seconds on how bidding process you know proceeds but we expect that uh bids about 80 to 38:23 38 minutes, 23 seconds uh 80,000 to one lakh cr will get finalized. 38:28 38 minutes, 28 seconds Got it. But could you give this you know what this 12 month uh pipeline would have been at the same time last year? 38:33 38 minutes, 33 seconds Has it you know increased? Um it has almost remained same. Remained the same. Okay. 38:40 38 minutes, 40 seconds Um and just uh last a clarification on your um the SCA assets that you mentioned this rupee uh you know 6200 38:48 38 minutes, 48 seconds crores of SCA assets that would be um you know accounting wise part of your gross block number right and the 25 billion uh 2500 crores you mentioned 38:57 38 minutes, 57 seconds would be part of CWIP. This is not part of this is beyond what is your uh reported number. Is this is that understanding correct? 39:06 39 minutes, 6 seconds No, so SCA gets reported separately as under no non-financial asset but 39:14 39 minutes, 14 seconds right so that's the number you mentioned 6200 crores that would be the already the operational asset and 2500 crores is yet to be operationalized right is that 39:23 39 minutes, 23 seconds understanding correct these are both part of your other financial assets but this would be the break up for the sea assets on the smart meter side 39:30 39 minutes, 30 seconds so one so one is contracted assets and one is SC asset. Once the asset gets uh 39:38 39 minutes, 38 seconds I mean once the asset gets commissioned that forms part of your contracted asset and once it forms I mean once it is under construction it forms part of your 39:47 39 minutes, 47 seconds SE asset and both are part of non-financial asset. 39:53 39 minutes, 53 seconds Sure. So could could you give that number that in your other financial assets right now how much is the already the contracted asset and how much is 40:00 40 minutes under construction? 6,200 and 7,000 6,27,000 correct. 40:09 40 minutes, 9 seconds Okay, got it. Thank you so much, sir. I appreciate the clarifications. 40:15 40 minutes, 15 seconds Thank you. We take the next question from the line of Mahesh Patil from ICIA Securities. Please go ahead. 40:23 40 minutes, 23 seconds Sir, hi. Uh thanks for the opportunity. 40:25 40 minutes, 25 seconds Uh first question is on the uh interstate uh opportunity. 40:29 40 minutes, 29 seconds So what do you think like annually what's the pipeline and what kind of bidding number that we are looking at? 40:39 40 minutes, 39 seconds So interest rate would be around uh 30 to 40,000 cr uh collectively all stay together uh annually. 40:53 40 minutes, 53 seconds Okay. 40:54 40 minutes, 54 seconds Yes. Yes. Yes sir. And so my second question is on the HVC Mumbai HDC project. So we mentioned that we commissioned it fully in FY26. So is it 41:04 41 minutes, 4 seconds possible to share the date was it was uh was it a single date or the different elements were commissioned at uh different point of time? 41:13 41 minutes, 13 seconds It was a single date uh we commissioned on as from 15th March. 41:20 41 minutes, 20 seconds Okay. And some of the cost remains as 7,000 K right for tariff and everything. 41:25 41 minutes, 25 seconds No additional cost or tariff is being claimed here. 41:30 41 minutes, 30 seconds So 7,000 is the cost of completing that project. Okay. Thank you. 41:40 41 minutes, 40 seconds Thank you. We take the next question from the line of Ram J from JP Morgan. Please go ahead. 41:48 41 minutes, 48 seconds Hi sir. I have a question regarding the smart meter smart meters installed your how much is the number of for the 41:57 41 minutes, 57 seconds last year smart meters 80 uh 82 lakh no no last year we installed 82.20 20 42:05 42 minutes, 5 seconds lakh 9 lakh smart meter in 2016. 42:12 42 minutes, 12 seconds Okay. For your media release page three, it says we have deployed 1 cr smart meters. 42:21 42 minutes, 21 seconds All aggregate till today. Yeah. Yeah. It is all aggregate till today. So last year when we begin there was about 31 lakh smart meters which was installed. 42:32 42 minutes, 32 seconds In the current year we install about uh this 80 2.20 lakh m. So the aggregate is that number. 42:41 42 minutes, 41 seconds Okay. Thank you. 42:46 42 minutes, 46 seconds Thank you. We take the next question from the line of Bat C Sha from BCS Capital Ideas Limited. Please go ahead. 42:56 42 minutes, 56 seconds Yeah. Uh hi Kai and hi Kong. Uh 43:02 43 minutes, 2 seconds uh one uh broad question uh uh given the fact that uh uh the 43:11 43 minutes, 11 seconds opportunity on transmission now clearly uh seems to have widened and it is also reflected in our uh uh pipex program. 43:23 43 minutes, 23 seconds uh our distribution assets are doing a steady progress and helped by addition 43:30 43 minutes, 30 seconds of new RB assets but our smart meter is a high growth opportunity at least for 43:36 43 minutes, 36 seconds some length of time and maybe at some states ENI will kick in uh in that 43:44 43 minutes, 44 seconds backdrop if I look at uh and I'm focusing on operating profits uh that is profits before 43:53 43 minutes, 53 seconds uh aging any other income. So our profits for the 4year period have remained rangebound between 4 to 4 and a 44:02 44 minutes, 2 seconds half thousand cr each year between financial year 1920 up to 22 23. In that 44:10 44 minutes, 10 seconds 4year period it has been in a range of 4 to 4 and a half thousand cr. Then uh clearly we made a break in the 44:18 44 minutes, 18 seconds subsequent year approaching closer to 6,000 then in 25 7,000 and now uh 26 44:28 44 minutes, 28 seconds about 8,000 when definitely there is a progress made in last three years but it would say uh 44:37 44 minutes, 37 seconds I think more correctly reflective of opportunity and our own preparedness and strength in 44:45 44 minutes, 45 seconds the India where we see far more accelerated growth in our operating profit. So from 8,000 crores for the 44:53 44 minutes, 53 seconds last year operating profit. Uh at what state do we see doubling of that and at uh in what time period we think it will triple? 45:07 45 minutes, 7 seconds So uh thank you for this question. So uh this year well last year uh the 45:13 45 minutes, 13 seconds consolidated number was 8,726 uh and uh as as see uh our our business 45:23 45 minutes, 23 seconds other than CNI is all capex based business uh and then the moment we capitalize we add that profitability and 45:33 45 minutes, 33 seconds as we discuss uh the capex and capitalization plan for coming year that will directly translate to uh addition 45:42 45 minutes, 42 seconds of ibida. So uh next year given the capitalization uh uh plan we expect that number could be around uh 11,500. 45:53 45 minutes, 53 seconds So, so Baba as you know generally as management we would not give guidance on the AITA numbers but uh as we mentioned 46:03 46 minutes, 3 seconds is that there's a significant capex capitalization which is going to happen during the next two years itself and if you consider that during this financial 46:12 46 minutes, 12 seconds year we have just added I mean we have not added any revenue numbers from the Mumbai HBDC uh year which is a 46:19 46 minutes, 19 seconds significant increase uh when the full year numbers will kick in FI26. So from that perspective and if you consider the 46:28 46 minutes, 28 seconds locked in portfolio by the end of four years when all these projects would get fully commissioned we're at least looking three times the size of the 46:36 46 minutes, 36 seconds current uh uh trajectory that we have uh three times portfolio 46:44 46 minutes, 44 seconds sorry three times in what time frame in once all these uh all the existing transmission project gets completed in 46:52 46 minutes, 52 seconds the next 36 to 40 months I see. So in 3 to four years time what 47:00 47 minutes is operating profit of about 8,000 cr and uh a bit of a little less than 9,000 47:07 47 minutes, 7 seconds cr last year we are seeing it should triple in 3 to four years time. 47:13 47 minutes, 13 seconds Yeah. Yeah. Once all these projects because all these projects have the locked in tariff which has been indicated and all these projects on a 47:20 47 minutes, 20 seconds run rate basis will start then trickling all these numbers that we have mentioned 47:26 47 minutes, 26 seconds and that takes into account uh all of uh that takes into account some amount of 47:34 47 minutes, 34 seconds additional smart meter contracts that you may get or based on the current contracts only that you are estimating 47:42 47 minutes, 42 seconds based on the current smart meter contract. price of 2.46 criter. 47:47 47 minutes, 47 seconds All right. Uh which means essentially that uh what is about 8,000 operating profit and less than 9,000 to 8,700 or 47:57 47 minutes, 57 seconds EITA uh should be in the corridor of 25 to 27,000 in 3 to four years time. 48:06 48 minutes, 6 seconds I would not I mean uh it would I mean I'm just saying is that all the tariff numbers would get sticking. I do not want to put a number today on the AITA 48:16 48 minutes, 16 seconds margins because I don't we generally do not give a guidance on the AITAS to uh on the investors. What I'm saying is that all the transmission projects would 48:24 48 minutes, 24 seconds get completed uh and that itself would uh uh translate to two to three times of the numbers of the current numbers. 48:34 48 minutes, 34 seconds Okay. Uh uh and Kel I appreciate you being very coy about the guidance and because there's a predictable assess 48:43 48 minutes, 43 seconds predictable timelines of execution and we know what are the rate of returns that we have to earn on that. So there 48:51 48 minutes, 51 seconds is a fair degree of settled uh clarity as to what the number should be. uh essentially exactly what I think is that 48:59 48 minutes, 59 seconds sir that 72,000 of the under construction pipeline would translate to an additional tariff of 10,000 odd 49:06 49 minutes, 6 seconds crores once this entire project gets completed. You know that the distribution business will have currently 2,500 AITA which are 49:14 49 minutes, 14 seconds translated to close to 3,3,200 numbers and smart meter business will also start generating 2,400 to 3,000 odd 49:23 49 minutes, 23 seconds crores of a bita trajectory once the entire smart meter profile I mean the number I mean that's the guidance which 49:31 49 minutes, 31 seconds we have been giving to everybody and we'll continue to give that. 49:35 49 minutes, 35 seconds Okay. No, I appreciate uh I just wanted to uh wanted to uh basically hear and 49:44 49 minutes, 44 seconds understand that finally range kind of a uh corridor in which we were there for a 49:52 49 minutes, 52 seconds length of time. Clearly last three years they've been a good progress but teaway progress is what I was looking forward 50:01 50 minutes, 1 second to and I believe now this is the phase which is commencing for that teaway growth right correct sir 50:10 50 minutes, 10 seconds okay and uh is is the picture more shaded thereafter after these 3 to four 50:18 50 minutes, 18 seconds year corridor is over or uh given the uh longevity of the transmission 50:25 50 minutes, 25 seconds opportunity and uh uh other things which will play out like you talked about CNI and uh hopefully distribution game may open up. 50:36 50 minutes, 36 seconds Uh would we say that the uh pace of our expansion uh uh 50:44 50 minutes, 44 seconds uh tand by uh would continue thereafter is so obviously bal we would like to 50:52 50 minutes, 52 seconds continue that way and uh you are spot on uh see the currently it is a transmission which is contributing to 51:01 51 minutes, 1 second growth uh it could be CNI in uh uh after some time then it could be a 51:07 51 minutes, 7 seconds distribution after some time and the other one that we are incubating is district cooling probably that will also 51:14 51 minutes, 14 seconds start picking up in four five years time so we'll we'll all continue to have that aspiration of growing but with the 51:23 51 minutes, 23 seconds financial discipline and execution discipline as well right one last thing uh cond for uh 51:32 51 minutes, 32 seconds district cooling opportunity uh I believe we are doing something in Gandhi Nagar but uh 51:40 51 minutes, 40 seconds overall where large new clusters are coming about uh of development across 51:47 51 minutes, 47 seconds the country are we not looking at tying up opportunity at the early stage and figuring out a solution while those 51:55 51 minutes, 55 seconds large mega clusters are being developed anywhere in the country. No, I think that that is where uh we are working 52:04 52 minutes, 4 seconds very uh actively. In fact, we have just got concession I I mentioned in last call as well. We got a concession from 52:12 52 minutes, 12 seconds one of the cluster development happening in Chennai. 52:16 52 minutes, 16 seconds Uh we are we are also talking to various state government and wherever. So we we 52:25 52 minutes, 25 seconds see a great opportunity there. It may not be a sizable today but going forward by we think that it is going to be a big one. 52:35 52 minutes, 35 seconds Okay. Fantastic. Uh and uh hati congratulations. I think uh uh probably the most exciting phase of uh uh this 52:44 52 minutes, 44 seconds opportunity probably is I say it is begun. 52:49 52 minutes, 49 seconds Perfect. Thank you. Thank you for Thank you. 52:54 52 minutes, 54 seconds Thank you ladies and gentlemen. If you wish to ask a question, please press star and one. 53:01 53 minutes, 1 second We take the next question from the line of Nirmal from Aita Sun Life AMC. Please go ahead. 53:09 53 minutes, 9 seconds Uh thank you for taking uh my question sir. So I have two uh small questions on the transmission bottlenecks. Uh so just 53:17 53 minutes, 17 seconds wanted to understand to what extent do you see uh the revised compensation scheme especially after the latest revision positively impact and resolving 53:25 53 minutes, 25 seconds the RO issues uh this financial year and uh is it just the compensation that is impacting RO issues or there are other issues as well? 53:37 53 minutes, 37 seconds So RO there are two kind of RO one is where you require a permission. So essentially it is like a forest 53:44 53 minutes, 44 seconds clearance or if you are encountering any in wildlife century then those clearances and there is a set process 53:52 53 minutes, 52 seconds around it and we have we have also you know um completely structured uh that 54:00 54 minutes particular process in a way that we now know very clearly as to when are we going to get and and our team is fully 54:07 54 minutes, 7 seconds fully aligned to the the the process uh or the requirement of the process for getting those approval. So and the 54:16 54 minutes, 16 seconds second part is RO from the general uh uh public where 54:23 54 minutes, 23 seconds there is a ownership of the land from farmers or individual and there those government policies come into play. Uh 54:32 54 minutes, 32 seconds many a time uh we we see that despite having collector order for compensation um as per the government 54:41 54 minutes, 41 seconds policy few of the individuals or group of the individuals will still create a problem. Uh even now all the government 54:51 54 minutes, 51 seconds state governments as well as central government is very serious about this particular problem and they are also trying to systematically sort this out. 54:59 54 minutes, 59 seconds uh we have also seen now police protection being utilized very frequently for getting RO. So uh so the 55:08 55 minutes, 8 seconds these challenges are there on the ground but uh we also see that uh uh timely action from various government 55:16 55 minutes, 16 seconds authorities as well to sort those issues out. 55:22 55 minutes, 22 seconds Okay. And uh do you see the revised compensation impacting positively this financial year? 55:28 55 minutes, 28 seconds So revised compensation if it is revised by government and we have to pay that additional compensation 55:35 55 minutes, 35 seconds uh uh we are neutral to it because that gets covered into change in law but I don't see uh it is getting revised uh 55:44 55 minutes, 44 seconds significantly in anytime soon. 55:50 55 minutes, 50 seconds Uh no sir I meant the uh the new amendments that are there. So now you need to have uh a committee uh the 55:58 55 minutes, 58 seconds market review committee is there. So whether do you think these new amendments will help in resolving these issues? That's what I'm trying to 56:06 56 minutes, 6 seconds understand. Especially this financial year. 56:08 56 minutes, 8 seconds So it is it is already there. It is not new one. uh the last year last two last year when uh government of India 56:14 56 minutes, 14 seconds notified that policy and when all states started notifying their respective policy they had this provision and in 56:22 56 minutes, 22 seconds fact they are called ELVC committee. So they assess what is the market rate 56:29 56 minutes, 29 seconds prevailing in that particular area and decides compensation based on that. uh that also gives a flexibility. You know 56:37 56 minutes, 37 seconds sometime it happens that in a particular area your ready rakner or gentry rate is low but market price is high and there 56:46 56 minutes, 46 seconds those committees intervention becomes very very useful. So it certainly helps us. 56:53 56 minutes, 53 seconds Okay sir. Thank you for the response. 56:58 56 minutes, 58 seconds Thank you. We take the next question from the line of Vishal Dillaya from Bundan AMC. Please go ahead. 57:06 57 minutes, 6 seconds Uh hi. Uh any equipment that is being sourced from China or you plan to source from China which is under short supply in India? 57:15 57 minutes, 15 seconds We can't source equipment from China for on behalf your EPG suppliers and uh 57:23 57 minutes, 23 seconds equipment contractors on behalf of transmission. 57:27 57 minutes, 27 seconds No. So the we as per conditions of the bid we can't use any equipment manufactured in China 57:35 57 minutes, 35 seconds uh if it is through TBCB so we don't uh envisage any such import from China for 57:42 57 minutes, 42 seconds our TBC projects perfect thank you sir that is very helpful and one question for punzil uh 57:50 57 minutes, 50 seconds just to add one thing on on a supply side uh uh the kind of challenges that we uh 57:57 57 minutes, 57 seconds we're facing as a sector in the country is is easing out and in fact lot of new capacity is being added 58:06 58 minutes, 6 seconds as far as GIS transformers reactors are concerned and all those OEM manufacturers has also started uh 58:15 58 minutes, 15 seconds manufacturing quite a good amount of component and HBDC as well. So these and 58:21 58 minutes, 21 seconds Hitachi of the world has invested in India in their manufacturing capacities. 58:27 58 minutes, 27 seconds So we see the supply uh related issues getting ease out very soon and in fact it has ease out to a great extent. We 58:36 58 minutes, 36 seconds had a very different distinct advantage even in difficult period. We were 58:45 58 minutes, 45 seconds not really facing that challenge because usually we we buy through strategic uh procurement and we have that kind of 58:54 58 minutes, 54 seconds relationship and we we order those equipment well in advance and uh so that we don't face those uh challenges of uh 59:02 59 minutes, 2 seconds equipment getting uh delivered delay. In fact uh no our no project of AES got 59:09 59 minutes, 9 seconds delayed because of delay in uh equipment delivery that is happening to you sir. Thank you. 59:20 59 minutes, 20 seconds Thank you. We take the next question from the line of Barat Sri Sha from BCS Capital Ideas Limited. Please go ahead. 59:28 59 minutes, 28 seconds Yeah. Uh just one more thing. uh uh the borrowing level uh I think for the last 59:35 59 minutes, 35 seconds year in aggregate was I think about uh less than 50,000 crores 59:42 59 minutes, 42 seconds uh uh four years down the line what kind of borrowing level do you encreate 59:50 59 minutes, 50 seconds sir I don't have an absolute number about four years borrowing level but uh we have been always giving a guidance 59:56 59 minutes, 56 seconds that our net leverage would be in the range of 4.5 to 4.7 times. So we will continue to maintain that and that 1:00:04 1 hour, 4 seconds financial discipline we will continue to maintain to ensure that we always get the highest ratings for all our transmission products. So from that 1:00:13 1 hour, 13 seconds perspective we will ensure that our leverage is always in check uh to ensure that we have the highest ratings uh 1:00:20 1 hour, 20 seconds overall uh but uh kung uh if uh this is going to 1:00:27 1 hour, 27 seconds be high growth phase for our profits as the projects will kick in therefore if 1:00:33 1 hour, 33 seconds we assume the same 4.5 to 47 4.7 times then it will uh it will appear that our 1:00:42 1 hour, 42 seconds uh uh borrowings also uh would go to 125 1:00:48 1 hour, 48 seconds to 150,000 cr which I think based on the yearly cash flows and other things I 1:00:55 1 hour, 55 seconds doubt or uh given the capex requirement that our borrowing level will be hitting that kind of a number 1:01:03 1 hour, 1 minute, 3 seconds sir I'll I'll walk you through separately about our uh the entire borrowings programs for the next four five years especially at the end of four years especially at that time. 1:01:13 1 hour, 1 minute, 13 seconds But brother the two thing is certain that we are not reaching that number uh 4.5 to 4.6 and uh second thing is also 1:01:21 1 hour, 1 minute, 21 seconds certain that we have logged in capex of 77,000 cr uh in the 4 year period. 1:01:29 1 hour, 1 minute, 29 seconds Yes. Yes. 1:01:30 1 hour, 1 minute, 30 seconds Yeah. Yeah. That's what I that I understand uh uh only by uh given that 1:01:38 1 hour, 1 minute, 38 seconds uh kind of a pace of about 20 odd thousand a year of capex u 1:01:45 1 hour, 1 minute, 45 seconds I would assume that borrowing probably will not rise at the same level but uh and I'll uh separately work on that with fun. 1:01:53 1 hour, 1 minute, 53 seconds Perfect. Thank you. Yeah. Thank you. 1:01:58 1 hour, 1 minute, 58 seconds Thank you ladies and gentlemen. We will take that as the last question and we conclude the question and answer session. I now hand the conference over 1:02:07 1 hour, 2 minutes, 7 seconds to Mr. Kungjal Mata for his closing comments. 1:02:11 1 hour, 2 minutes, 11 seconds No, I would just like to thank each one of you who participated in the calls in case we have not been able to answer or clarify to anyone. Uh happy to take uh any of your query separately. 1:02:23 1 hour, 2 minutes, 23 seconds Thank you all. 1:02:25 1 hour, 2 minutes, 25 seconds Thank you. On behalf of Azani Energy Solutions, that concludes this conference call. Thank you for joining us.