BOROSIL RENEWABLES LIMITED — Q3 FY26

Borosil Renewables Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=f230gQ32jDw Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Boris Renewables Limited Q3 FY26 earnings conference call hosted by 0:08 8 seconds Access Capital Limited. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:25 25 seconds this conference is being recorded. I now hand the conference over to Mr. Rohan Giwala from Access Capital. Thank you and over to you sir. 0:34 34 seconds Thank you Shukam. Good evening. On behalf of Access Capital, I'm pleased to welcome you all for the Q3 FI26 earnings 0:42 42 seconds conference call of Porrosal Renewables Limited. We have with us the management represented by Mr. PK Keruka, executive 0:49 49 seconds chairman, Mr. Ashoke Chen, non-executive director, Mr. Sunilta, whole time director and chief financial officer and Mr. Daval Patel, EVP investor relations. 1:00 1 minute We will begin with the opening remarks from the management followed by an interactive Q&A session. Thank you and over to you sir. 1:13 1 minute, 13 seconds Uh this is Praep Keruka, chairman. Good afternoon and welcome to the Boros renewables quarter 3 FI26 investor call. 1:23 1 minute, 23 seconds The standalone and consolidated financial results for the quarter ended 31st December 25 were approved by the 1:30 1 minute, 30 seconds board of bord renewables on Wednesday 28th January. Our results and an updated presentation have been sent to the stock 1:37 1 minute, 37 seconds exchanges and have also been uploaded on the company's website. We will now discuss the operations of company on a standalone and consolidated basis. 1:47 1 minute, 47 seconds On standalone basis, the company achieved an all-time high quarterly sales of rupees 386.5 1:55 1 minute, 55 seconds crores versus 275.28 crores in the same quarter last year and 2:03 2 minutes, 3 seconds rupes 378.44 crores in the pre preceding quarter. The 2:09 2 minutes, 9 seconds company at rupes 129.04 crores which is 33.4% 4% of sales through a quantum jump 2:18 2 minutes, 18 seconds of 518% from rupees 20.89 crores which is 7.6% 2:25 2 minutes, 25 seconds of sales in the corresponding quarter last year while it remains consistent with an IIDA of Indian rupees 125.5 2:35 2 minutes, 35 seconds crores which is 33.2% 2% of sales in the preceding quarter. Sales rose by 40% during this period compared to the 2:44 2 minutes, 44 seconds corresponding quarter last year. Almost the entire increase in sales value for the quarter came from increased sales 2:51 2 minutes, 51 seconds prices. Average factory selling price during the quarter increased to 149.97 rupees per millm as compared to rupees 3:00 3 minutes 104.54 per millm in the corresponding quarter last year. 3:06 3 minutes, 6 seconds This compares with rupees 147.5 uh in the preceding quarter leading to a 3:14 3 minutes, 14 seconds significant rise in the margins. Exports amounted to rupees 20.74 crores 3:21 3 minutes, 21 seconds accounting for 5.4% of the turnover compared to rupees 16 crores in the corresponding quarter when exports made 3:29 3 minutes, 29 seconds up 5.8% of the turnover. Companies major markets that is EU, Turkey and USA continue to face challenges due to low demand. 3:40 3 minutes, 40 seconds The domestic demand continues to be steady even though the anticipated changes in GST and prolonged monsoon 3:48 3 minutes, 48 seconds challenged solar module manufacturers with postponed deliveries. This had led to cash flow blockages for the 3:56 3 minutes, 56 seconds manufacturers and a decline in the selling prices of modules affecting the margins. The delivery situation started 4:04 4 minutes, 4 seconds to improve towards the middle of December and is now normalizing with 145 gawatt of module manufacturing 4:11 4 minutes, 11 seconds capacity. India is now an international manufacturing hub. 4:18 4 minutes, 18 seconds This is expected to rise further to 200 gawatt by 2027. 4:25 4 minutes, 25 seconds While conventional wisdom projects capacity utilization of module manufacturers to come down, my personal 4:32 4 minutes, 32 seconds guess is the reverse with a landmark Indo European Union free trade agreement 4:38 4 minutes, 38 seconds now a reality. I foresee the European Union to start sourcing a portion of its solar modules from India. If this is 4:48 4 minutes, 48 seconds handled right within the agreement, the solar module manufacturing industry could become a a significant beneficiary under this agreement. 5:00 5 minutes Coming to solar installations in India in the first 9 months these have been around 30 gawatt and another 10 gawatt 5:09 5 minutes, 9 seconds can be expected to be added in the last quarter making a total of 40 gaw in 202526 5:17 5 minutes, 17 seconds which could which would reflect modules glass consumption of about 55 g gaw as against 24 gaw during the previous year. 5:26 5 minutes, 26 seconds ALMM mechanism for modules implemented from April 2024 has led to rush for 5:33 5 minutes, 33 seconds capacity additions and which many feel could lead to over capacity which would have its own repercussions in the future. 5:43 5 minutes, 43 seconds Considering challenges in grid stability and power evacuation, we see a trend of increasing adoption of battery energy 5:51 5 minutes, 51 seconds storage systems. The cost of fully dispatchable renewable power with battery storage is now reduced 5:57 5 minutes, 57 seconds considerably with aggressive bidding and has come down to about rupees 4.5 per watt peak. Significant investments are 6:06 6 minutes, 6 seconds seen in this space. Government has introduced ALMM 2 with effect from June 2026 6:14 6 minutes, 14 seconds mandating use of domestically produced solar cells. It is expected that the solar cell capacity which is currently 6:22 6 minutes, 22 seconds at 24 gaw will rise to 75 gawatt by 2027. Looking to the momentum to add capacities. 6:31 6 minutes, 31 seconds The next step will be to introduce ALM 23 from June 2028 under which ingot and 6:38 6 minutes, 38 seconds wafer will also be mandated to be locally produced. These measures will ensure building up of a local supply 6:46 6 minutes, 46 seconds chain and ecosystem. While we expect the strong demand for glass to continue, we are in dialogue with the government to 6:53 6 minutes, 53 seconds develop and introduce measures to ensure a continued robust demand for all domestic components including solar glass. 7:04 7 minutes, 4 seconds Present solar glass capacity in the company in the country is 2,600 tons per day which which translates to about 18 7:12 7 minutes, 12 seconds gawatt. Considering the expected current demand of about 55 gawatt on DC basis for domestic installations imports 7:21 7 minutes, 21 seconds occupy about 70% share of the consumption leaving huge scope for capacity addition for import substitution. 7:30 7 minutes, 30 seconds We understand that new capacity additions majority being for captive consumption from the existing and new players will take the total domestic 7:39 7 minutes, 39 seconds capacity to about 51 gaw by March 27 which will still be short of the real demand. 7:49 7 minutes, 49 seconds CBD on imports from Malaysia set to expire on 8th March 2026 has now been extended by 3 months to 8th 7:58 7 minutes, 58 seconds June 2026 since DGTR is considering the sunset review. We expect the authority to issue 8:06 8 minutes, 6 seconds the final findings in the next couple of months. Now I come to the consolidated results for the quarter which include 8:13 8 minutes, 13 seconds the operations of the subsidiaries. The overseas subsidiaries including the step down subsidiaries have generated net 8:20 8 minutes, 20 seconds revenue of rupes 3.96 crores and aida of rupees 1.9 crores for quarter 3 financial year 2026 8:29 8 minutes, 29 seconds against uh net revenue of 0.43 crores and 8:35 8 minutes, 35 seconds negative evida of rupees 5.08 It critic 8:43 8 minutes, 43 seconds the consolidated net revenue for the quarter under review stands at rupees 390.46 8:50 8 minutes, 50 seconds crores and an IDIA of rupees 130.94 crores as compared to net revenue of 378.88 8:58 8 minutes, 58 seconds crores and aida of rups 120.42 crores in the preceding quarter. The wholly owned 9:05 9 minutes, 5 seconds German subsidiary US filed for insolvency after the German bank ILB demanded payment of capital subsidy of 9:15 9 minutes, 15 seconds euros 4.81 million given by them to GMBB to support capeex plans as GMBB uh has undergone insolveny. 9:25 9 minutes, 25 seconds USC has denied obligation to make such payment as the condition of operating GMP for 5 years could not be fulfilled 9:32 9 minutes, 32 seconds due to first measure situation arising out of inaction by the EU German government to support domestic man solar gas manufacturing. 9:42 9 minutes, 42 seconds I'm happy to report that the company has been able to achieve significantly better sales and a bidder over the last few quarters on the back of improved 9:51 9 minutes, 51 seconds domestic operations sales on standalone basis for 9 months in this financial year 9:57 9 minutes, 57 seconds at rupees 1,97 crores doing an increase of 40% for the 10:04 10 minutes, 4 seconds corresponding 9 months in the last year and an Aida of 10:13 10 minutes, 13 seconds with that uh uh uh shows a jump of 235% over the corresponding 9 months. With 10:21 10 minutes, 21 seconds that, I would now like to open the floor to questions that you may have. Thank you. 10:26 10 minutes, 26 seconds Thank you very much. We will now begin with the question and answer session. 10:30 10 minutes, 30 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 10:38 10 minutes, 38 seconds may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assemble. 10:49 10 minutes, 49 seconds The first question comes from the line of Vikram Sharma from Nisha. Please go ahead. 10:58 10 minutes, 58 seconds Hello. Hi sir. Congratulation on good setup number. Thank you. Sir. 11:04 11 minutes, 4 seconds So my first question is what would be uh a trigger for announcing further 11:11 11 minutes, 11 seconds capacity expansion like if demand remain very strong and if we see other players are announcing aggressive 11:19 11 minutes, 19 seconds expansion plans and we also have feedback from the market the boros will offer the best quality among Indian 11:26 11 minutes, 26 seconds players. So if we are unable to supply then definitely a demand may shift to other manufacturers. 11:34 11 minutes, 34 seconds So how we what is management's view on this and how are we thinking? 11:41 11 minutes, 41 seconds It's like this that there has been a very significant increase in the number of new participants. Uh can you mute 11:49 11 minutes, 49 seconds your microphone because there's a lot of background noise coming from your phone. 11:53 11 minutes, 53 seconds So uh the uh with the with the increase in number of new entrance there's been a lot of poaching of expert people and uh 12:02 12 minutes, 2 seconds when we are now currently in the process of taking up production by 60% which is quite a lot actually and requires a lot 12:10 12 minutes, 10 seconds of people. So uh you know we are cautious we don't want to move in a hurry and not be able to manage the 12:18 12 minutes, 18 seconds situation. So I guess that should answer your question. But we are very conscious, we acutely conscious of the increased demand and we acutely 12:26 12 minutes, 26 seconds conscious of the fact that we may have to do something about it. Thank you. 12:32 12 minutes, 32 seconds Okay. And the second like uh what will be the impact of rupee depreciation? 12:39 12 minutes, 39 seconds So what has our selling price improved in uh this quarter or we are we expecting it will improve further? 12:48 12 minutes, 48 seconds So you can see in the last quarter we our average realization was 147.50 and this quarter it is nearly 150 rupees. So 12:55 12 minutes, 55 seconds some advantage we are gaining out of this uh depreciation but uh it's only marginal uh increase and not a significant one. 13:06 13 minutes, 6 seconds Okay sir. Okay sir. Thank you. Thank you. 13:11 13 minutes, 11 seconds Thank you. The next question comes from the line of Nidisha from ICIC securities. Please go ahead. 13:18 13 minutes, 18 seconds Uh yes. Uh thank you so much for taking my question. Uh so uh I want to know firstly on the on the divestment from uh 13:28 13 minutes, 28 seconds the the German subsidiary. What are our timelines on that? When can we expect you know the the loss to sort of go away 13:35 13 minutes, 35 seconds from our our control P&Ls? That's the first one. 13:42 13 minutes, 42 seconds So the answer to that is that you see the company has filed for insolvency. Uh 13:49 13 minutes, 49 seconds a gentleman has been uh appointed by the court to look into the affairs of the company and see whether uh liquidation 13:57 13 minutes, 57 seconds is required or some new buyer can be found etc. And until that entire process is complete and a final recommendation 14:06 14 minutes, 6 seconds is placed uh before the court the next action cannot be foreseen by us. Now 14:14 14 minutes, 14 seconds from our point of view what we had done was that we had provisioned the entire amount of money which we had invested 14:22 14 minutes, 22 seconds and which had remained outstanding from that company. So there is nothing more that we could do and I I mean that would 14:29 14 minutes, 29 seconds really be the limit of uh our involvement in the matter by our understanding. 14:36 14 minutes, 36 seconds So uh they will take what time they will. So one one sec from the perspective of accounting and losses we 14:43 14 minutes, 43 seconds already deconolidated the uh balance sheet by deconolating GMBB which is a operating step down subsidiary and now 14:52 14 minutes, 52 seconds we also de consolidated geosphere which was the holding company of GMBB. So the deconolidation is already done in the balance sheet. So assets have been 15:00 15 minutes removed the investment has been removed and even the noses which were in the form of other equity earlier have been adjusted back. So all that has been done 15:08 15 minutes, 8 seconds and there there are no more losses as you can see the consolidated and standalone results. There are hardly any uh differences. So it is more or less a 15:17 15 minutes, 17 seconds stand alone which is being shown as consolidated now. 15:23 15 minutes, 23 seconds All right. Uh my thank you. My second question would be on on the expansion. I can see that we are on track uh to 15:30 15 minutes, 30 seconds complete by December by December 26. Is this the entire capacity then or are we willing or will we be saving it uh 15:38 15 minutes, 38 seconds phasing it out and when can we expect uh say utilizations up 8% on uh the 15:46 15 minutes, 46 seconds expansion we expect that uh you see the the date announced by had been March 27 and uh we 15:55 15 minutes, 55 seconds are discussing December 26 based on indications which you can see today as you know setting up a project entails a 16:03 16 minutes, 3 seconds lot of different agencies, lot of uh supplies coming together and it's very difficult to accurately predict when all 16:12 16 minutes, 12 seconds of these will actually come together and then the people required to set it up. 16:15 16 minutes, 15 seconds We're also going to be looking at a monsoon this year and that also has a tendency to delay matters. So, uh we we 16:23 16 minutes, 23 seconds are uh we we expect that always to start one furnace first, stabilize it and then start the second one. As matters stand, 16:32 16 minutes, 32 seconds we are building both the furnaces side by side. So, uh they they should be getting complete 16:39 16 minutes, 39 seconds within uh uh just a couple of weeks of each other in my opinion. 16:45 16 minutes, 45 seconds Okay. Thank you. My last question would be uh uh on the macro is that uh where 16:52 16 minutes, 52 seconds do you think the prices for solar glass specifically are headed given that uh there there are a lot of other 16:59 16 minutes, 59 seconds macroeconomic factors that are affecting these prices? Where do we see in the next year probably solar gas prices will 17:06 17 minutes, 6 seconds go given that it's a steady state of uh of tariffs and duties? 17:13 17 minutes, 13 seconds You see uh because there is a minimum import price set by the government uh the prices which are coming in from 17:21 17 minutes, 21 seconds China are fixed to that. We are looking at uh what the government might do with 17:27 17 minutes, 27 seconds glass coming from Malaysia because uh we cannot make we cannot hazard a guess. Uh the we did have a 9.71% 17:36 17 minutes, 36 seconds CBD on that. So there are only three possibilities. It might go down. It might stay the same, it might go up. Uh 17:45 17 minutes, 45 seconds whatever that is. Uh the module manufacturers generally uh they they set 17:52 17 minutes, 52 seconds their purchase uh for the longer term rather than the shorter term. So 17:58 17 minutes, 58 seconds wherever we have uh business which is uh our which is ours which people to whom we are supplying 18:06 18 minutes, 6 seconds we do not expect there to be interruptions in that. If uh you know small changes in prices are always 18:13 18 minutes, 13 seconds possible. So when that happens that will happen and to that extent it's impossible to predict anything with certainty. 18:22 18 minutes, 22 seconds All right. Thank you so much. Pleasure. Thank you. 18:26 18 minutes, 26 seconds Thank you. The next question comes from the line of Deepak Punwasi from Swan Capital. Please go ahead. 18:35 18 minutes, 35 seconds Yeah. Hi. Congratulation for a good set of numbers and uh thank you for the opportunity. So firstly wanted to check 18:41 18 minutes, 41 seconds it out in uh like we mentioned 70% of the import uh I mean 70% of the consumption is uh catered through the 18:50 18 minutes, 50 seconds import uh if you can also give a broader sense in terms of the like uh if the uh ad uh 18:58 18 minutes, 58 seconds add on Malaysia is getting extended uh on Malaysia 19:04 19 minutes, 4 seconds sorry counterveailing you see I have to be accurate in the terms that use. So there is an ADD on imports from China. 19:13 19 minutes, 13 seconds There is a CVD on imports from Malaysia as it stands. Now when once the government comes out with its findings 19:21 19 minutes, 21 seconds whatever those might be that we will be able to know once the government has said so which might take a couple of months. Yeah. H so sir just wanted to 19:30 19 minutes, 30 seconds check it out what is the pricing difference between Malaysia and India root 19:36 19 minutes, 36 seconds Indian manufacturer and Malaysian route we we are pricing from Indian domestic industry is pricing the products based 19:44 19 minutes, 44 seconds on the Chinese landed cost and the Vietnam coast and Malaysian coast is slightly below the Chinese cost but we 19:51 19 minutes, 51 seconds always try to position oursel as a import substitute for Chinese prices and try to get that much price but the 19:59 19 minutes, 59 seconds difference between Chinese and Malaysian and Vietnam pricing uh is of the order of 3 to 4% I in my view 20:07 20 minutes, 7 seconds okay and uh just wanted to check it out is there any further scope for the price hike at the current level given the 20:14 20 minutes, 14 seconds further deposition of rupee or how has been a dialog with the clu uh clients at this point of time 20:23 20 minutes, 23 seconds we we don't foresee a significant change going forward the prices are quite uh stable able at at these prices at these 20:29 20 minutes, 29 seconds levels and uh they are fairly competitive in in that sense and we are comfortable at these prices. 20:37 20 minutes, 37 seconds Okay. And secondly sir if you can also give a broader sense in terms of the uh uh any raw material or fuel cost 20:46 20 minutes, 46 seconds inflation which uh I mean are we facing any any 20:58 20 minutes, 58 seconds Hello, we're not able to hear you completely. 21:01 21 minutes, 1 second Uh we we lost the end of your question. 21:04 21 minutes, 4 seconds So just contact to check it out. Sir, uh if you can give a broader sense in terms of uh are we facing any raw material or fuel cost inflation at the current 21:13 21 minutes, 13 seconds juncture or how we are placed at the current juncture? 21:16 21 minutes, 16 seconds At the moment we do not see any inflationary tendencies in the cost of inputs whether raw materials or fuel. 21:24 21 minutes, 24 seconds You see we are living in a very volatile environment as we all know and uh uh there is the no doubt about it that the 21:33 21 minutes, 33 seconds Indo European Union deal has brought a sense of stability generally uh not just to India but to other markets which are 21:41 21 minutes, 41 seconds not related to us as well. So I I don't know that there might be any volatility 21:48 21 minutes, 48 seconds at the moment. Nothing is foreseen. So things look like they should be stable. 21:54 21 minutes, 54 seconds So the there have been some uh increase in prices of one or two key inputs. But the plant operations have worked very 22:02 22 minutes, 2 seconds diligently in order to uh remove the or say do away the impact of this price increase of that in particular input by increasing their efficiency. 22:11 22 minutes, 11 seconds They have increased the efficiency. they have changed the batch mix and done many other operational adjustments due to 22:19 22 minutes, 19 seconds which the impact is not uh felt in the final results. So of course there have been some changes at the price levels but the team has been able to control the impact. 22:27 22 minutes, 27 seconds Okay. And finally sir if you can give the uh data related to the volume growth in the 9 months and u we were also 22:35 22 minutes, 35 seconds talking some efficiency gains which we would look at look out in the existing capacity. So if you can just update on that part that would be really helpful. 22:44 22 minutes, 44 seconds So the operational gains in the form of volume is about 6% up from the compared to last year's 9 months and uh uh we 22:53 22 minutes, 53 seconds expect this to continue in the current quarter as well. So on on the whole uh compared to last year we will have at least 6% volume growth. 23:02 23 minutes, 2 seconds Okay. And is there any further possibility to optimize or get some more efficiency gain till the time new capacity get operational weights? 23:11 23 minutes, 11 seconds We keep trying every day and we we are not stopping here at 6%. So obviously the team is uh there to try for 23:18 23 minutes, 18 seconds increasing the output further. It would be marginal in my view because at least 2 three percentage is what we can expect. 23:27 23 minutes, 27 seconds Okay. Thank you. Thank you and wish you all the best sir. Yeah. Thank you so much. 23:32 23 minutes, 32 seconds Thank you. The next question comes from the line of Fken Sha from Dubai MC. Please go ahead. 23:41 23 minutes, 41 seconds Namaskar G. 23:43 23 minutes, 43 seconds Uh Namaskar sir congratulations on a steady set of results. Uh so my question is a little on the policy end. So on the 23:53 23 minutes, 53 seconds module manufacturing end the ALMM uh policy for cells is going to be implemented in June 2026 which is going 24:01 24 minutes, 1 second to mandate a large part of cells in the projects to be have a good DCR content I 24:08 24 minutes, 8 seconds think complete DCR content. So with that logic I don't on the ground I don't find enough cell capacity in India at the 24:16 24 minutes, 16 seconds moment it is being put up. So do you think a temporary demand uh issue could come up because the module manufacturers 24:24 24 minutes, 24 seconds may not be able to sell if they don't have their own uh cell capacity. 24:30 24 minutes, 30 seconds There is no bar on the importer of cells. So I do not see anybody who has orders for modules not being able to 24:39 24 minutes, 39 seconds manufacture and supply that because the cells can be very easily sourced from China. There's a certain price attached 24:46 24 minutes, 46 seconds to it that's all. So from your perspective, your question is regarding what happens after June 26. You know the government and the industry are working 24:55 24 minutes, 55 seconds together and they they in case the situation comes in where the sale capacity cannot ramp up to the current 25:02 25 minutes, 2 seconds level of model manufacturing and demand the uh the government and industry together would be able to find some 25:09 25 minutes, 9 seconds solution I suppose and the government may come up with some deferment or some some leways for certain projects certain 25:16 25 minutes, 16 seconds type of projects uh whereby the manufacturing can continue using the uh imported sale till the time the domestic production of solar cell increases to 25:25 25 minutes, 25 seconds the level of consumption. So we have to leave it to the government I think but uh uh I do not think government will take a stand that uh uh the the module 25:34 25 minutes, 34 seconds production has to stop if the solar sales are not available locally. 25:38 25 minutes, 38 seconds I can add one thing about the government that uh I'm seeing a level of uh level 25:44 25 minutes, 44 seconds of uh interaction with industry and with customers by the government uh which I have not seen before. They are very 25:53 25 minutes, 53 seconds clued in. They know exactly what they're doing. and in industry and in consumers. 25:59 25 minutes, 59 seconds I think we are very satisfied and comfortable that the government is doing every single thing possible to increase 26:06 26 minutes, 6 seconds solarization and deployment of solar energy uh in the country. 26:12 26 minutes, 12 seconds Thanks so that helps a lot but the reason I asked is because your commentary is a little conflicting from module manufacturers who already have 26:20 26 minutes, 20 seconds their cells in place but obviously that's to each their own. So my next question is uh along the lines of uh 26:29 26 minutes, 29 seconds Booj. So we have obviously been very cautious about expansions but uh do we have any room for further expansions uh 26:37 26 minutes, 37 seconds after the 600 TPD is in place I mean the land space and you know the 26:45 26 minutes, 45 seconds uh utilities wise we can easily go for another furnace. 26:49 26 minutes, 49 seconds Okay sir got it. That's also the land is it's all there. We we we have to decide to do it and it can get done. 26:58 26 minutes, 58 seconds Sure. Sure sir. Thanks sir. That helps. 27:01 27 minutes, 1 second In fact we have all the and we we have all the utilities batch house everything is ready in case we want to go ahead. 27:10 27 minutes, 10 seconds There's nothing stopping us other than caution. Sure sir. Uh that helps. Thanks sir. 27:19 27 minutes, 19 seconds Thank you. The next question comes from the line of Wittita Amlani an individual investor. Please go ahead. 27:28 27 minutes, 28 seconds Okay. 27:33 27 minutes, 33 seconds Sorry to interrupt ma'am. You're not audible. Uh am I audible now? Yes. 27:40 27 minutes, 40 seconds Uh my first question is related to the revenue. What will be the revenue for next four quarters? 27:50 27 minutes, 50 seconds We do not expect any major changes in revenue and the reason for that is that we are manufacturing full production and 27:59 27 minutes, 59 seconds selling everything that we make. So I I don't think there'll be much change in revenue. There can be a few percentage 28:06 28 minutes, 6 seconds points plus or minus uh you know but but I don't see any major change. 28:12 28 minutes, 12 seconds Okay. So we can say that the end of SR 27 it will be of like quarter and quarter pieces. 28:22 28 minutes, 22 seconds Yeah. Generally up to December it will be similar kind of revenue and once we start the production from the new funders which are under construction 28:30 28 minutes, 30 seconds right now in the Q4 FY27 we might see some revenue coming from them and then thereafter the revenue will increase by 60% as the capacity is going up by 60%. 28:42 28 minutes, 42 seconds Okay. My second question is related to equity. Is there will there be any further equity dilution? 28:52 28 minutes, 52 seconds No, there will be no further equity dilution uh we are completely uh funded from the perspective of these expansions 29:00 29 minutes and in case in case we need uh uh we need to expand further the cash across will support us. So as of now there is no plan to raise further equity. 29:12 29 minutes, 12 seconds Okay. And what is our targeted ROC after 6,000 29:20 29 minutes, 20 seconds 3600 uh expansion is on ROC will be upwards of 25%. 29:33 29 minutes, 33 seconds Okay. Thank you. Yeah. Thank you. 29:36 29 minutes, 36 seconds Thank you. The next question comes from the line of Mayul Panchani from 40 cents. Please word. 29:43 29 minutes, 43 seconds Hello sir, thank you so much for the opportunity. So as you mentioned that the government is doing a lot for the solar sector. So uh uh what can be some 29:52 29 minutes, 52 seconds of the positive developments for the from the budget for our company? That's a million dollar question. 30:01 30 minutes, 1 second I mean I mean I mean what are what are the some of the possibilities? I know that we don't have any uh preview information but uh what can we expect in 30:10 30 minutes, 10 seconds terms of uh what developments we have seen so far in the last uh one year? 30:16 30 minutes, 16 seconds See according to me u the as far as the solar glass production is concerned our 30:23 30 minutes, 23 seconds big our big ask was for anti-dumping duty which the government uh was able to grant us last year. So that part has 30:32 30 minutes, 32 seconds been done. Uh for the rest of it uh there are no hiccups uh in in our quest 30:39 30 minutes, 39 seconds for implementation of our new project and other glass manufacturers also who are trying to implement new glass 30:47 30 minutes, 47 seconds projects also are coming up coming online and I don't see that there's any hiccup from the side of the government. 30:55 30 minutes, 55 seconds So far as what they can do it's impossible for me to think. Though I can say one thing recently we saw in GST in 31:03 31 minutes, 3 seconds many items they reduced the GST from 18% to 5%. And that made a very big impact on the sales of those products like 31:10 31 minutes, 10 seconds automobiles and other things. So in that sense I don't know what the government might do for rooftop solar for right now 31:19 31 minutes, 19 seconds there's a certain limitation on companies being able to set up uh renewable energy projects. So normally 31:26 31 minutes, 26 seconds it's limited to 100% of their contract demand. Now when you set up a project for 100% of contract demand, you'll only 31:35 31 minutes, 35 seconds get about 20% of that. So you're still buying 80% from the grid. Now if the government goes up and says we can make 31:43 31 minutes, 43 seconds it double, triple, quadruple, I don't know, that would really set the market on fire. So we I don't know what what the government can come up with in in 31:52 31 minutes, 52 seconds their effort to increase this. One thing now is there that from a module manufacturing capacity of 10 GW about 3 32:01 32 minutes, 1 second 4 years ago we are at 120 gaw. So we have the muscle power now in terms of 32:07 32 minutes, 7 seconds manufacturing and I have I've also mentioned about the European trade deal 32:14 32 minutes, 14 seconds if something works out over there Europe has installed about 70 gawatt of modules 32:21 32 minutes, 21 seconds in the year 24. the 25 year figures are not yet out. So if they take say even 32:28 32 minutes, 28 seconds half of that there'll be 35 gawatt they can buy from India you know so I mean everything is open-ended this this trade 32:36 32 minutes, 36 seconds deal is a big deal in my opinion so let us see in what way this plays out uh sir my second question is uh 32:44 32 minutes, 44 seconds regarding uh our German subsidiary uh can we say that all the negative uh developments are out of the way now 32:53 32 minutes, 53 seconds As we have been advised by lawyers, according to the advice seed by our lawyers, there's nothing more that can 33:01 33 minutes, 1 second be that we can be stuck with and and is there any possibility of any 33:08 33 minutes, 8 seconds positive uh thing happening? I mean like the German like we are able to sell the subsidiary to a uh another company and uh recover some of the uh losses. 33:21 33 minutes, 21 seconds Frankly I think that is unlikely the the German subsidiary the manufacturing company is under the 33:27 33 minutes, 27 seconds control of court now and court operated administrator so if they we have lost the control already we have deconsold the balance sheet it's not in our 33:36 33 minutes, 36 seconds control now though we have sharers so it is the court and the administrator will take a decision whether to sell the company where they can find any buyer or 33:44 33 minutes, 44 seconds they have to sell the assets of the company will that be decided by the court and the administrator Yes. 33:51 33 minutes, 51 seconds Okay sir. Thank you so much for the all the answers. Thank you and all the best. Thank you. Thank you. Thank you. 33:58 33 minutes, 58 seconds Thank you. The next question comes from the line of Karan Sanwal from Nishay. Please go ahead. 34:06 34 minutes, 6 seconds Thank you for the opportunity opportunity. Uh so I wanted to ask that what would be the proportion of uh 34:13 34 minutes, 13 seconds electricity and natural gas in our power cost and how much savings can we you 34:21 34 minutes, 21 seconds know can be made from uh addition of renewable energy that the plants that we have set up and uh how does uh you know 34:30 34 minutes, 30 seconds the recent increase in natural gas pricing does it affect our power and fuel 34:38 34 minutes, 38 seconds So power and fuel is close to 32% of the cost of production put both put together and in terms of the saving on the power 34:47 34 minutes, 47 seconds cost we can save uh uh almost 1.5 bips in in terms of the incremental margin on 34:55 34 minutes, 55 seconds the company sales. So it's a quite substantial saving which we can achieve through the renewable energy deployment 35:02 35 minutes, 2 seconds which we are uh I mean this is slightly delayed from the uh developer side. So we this was to be commissioned in 35:09 35 minutes, 9 seconds September but uh we expect it to be commissioned by end of February now. So this will save uh about 1.25 crores per 35:18 35 minutes, 18 seconds month or something like that and uh yeah so these are the things which uh which we can see in the coming quarters. 35:27 35 minutes, 27 seconds natural gas price recently has uh uh gone up uh to some extent because of the 35:34 35 minutes, 34 seconds increase in the prices of the uh euro uh USA gas the Henry Huff gas. So we have certain benchmark contracts which are 35:42 35 minutes, 42 seconds linked to those uh uh benchmarks and uh we have to pay as per those moment in those benchmarks. So the cost has slightly gone up in the last quarters. 35:55 35 minutes, 55 seconds Do we anticipate our impact on margins due to this uh increase in achievement prices? 36:02 36 minutes, 2 seconds It will not be significant because uh we we are doing our bit to save on the consumptions and uh uh in terms of both 36:10 36 minutes, 10 seconds power and fuel and uh uh try to optimize our uh uh production uh which which can offset these cost increases. So there 36:19 36 minutes, 19 seconds will not be any significant change in the margins. 36:23 36 minutes, 23 seconds Understood. uh and so uh what would be the proportion of input from Malaysia uh 36:31 36 minutes, 31 seconds currently versus uh during uh the time the add was implemented 36:39 36 minutes, 39 seconds in in say 2024 before the add was levied on uh China and Vietnam the imports of 36:46 36 minutes, 46 seconds Malaysia were almost nil and as soon as the add started uh in December 24th the imports started in a big way. Currently, 36:55 36 minutes, 55 seconds Malaysian imports are to the tune of about 25% of the total imports and Vietnam is about 10%, 65% is uh 37:04 37 minutes, 4 seconds basically from China. So, this is a broad composition of the imports as of now and Malaysia has become significant 37:11 37 minutes, 11 seconds only after the anti-mping duty has been levied on China and Vietnam. So, it is important for us to get the CBD 37:18 37 minutes, 18 seconds continued uh so that it does not increase further from here. 37:23 37 minutes, 23 seconds So do do they have the capacity to increase import from here as well the Malaysian do the dome west? 37:32 37 minutes, 32 seconds Yes they have commissioned more capacity in Malaysia. So the capacity is available for uh export to India or to any other part of the world. So that 37:41 37 minutes, 41 seconds will not be a constraint. So we have to be we have we have to take uh uh concrete steps in terms of the government uh to continue leaving the 37:50 37 minutes, 50 seconds CBD and uh uh control the imports from Malaysia. 37:56 37 minutes, 56 seconds Understood. And one last question like uh how much time uh would we take to stabilize our line and scale the 38:04 38 minutes, 4 seconds utilization once the lines are commissioned the new line? 38:10 38 minutes, 10 seconds We will we will we expect to fire the furnace in December 26 and thereafter we generally plan for 3 months uh uh trial 38:19 38 minutes, 19 seconds periods to stabilize the production. Now it all depends on the process adjustments and uh uh behavior of the 38:28 38 minutes, 28 seconds synchronization of the all the equipment and furnace. It might it might be done in one month, it might take 3 months. Uh we have to see but 3 months is something what we have budgeted. 38:38 38 minutes, 38 seconds Understood. So thank you so much and all the very best. Thank you. 38:44 38 minutes, 44 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing government. Thank you and over to you sir. 38:53 38 minutes, 53 seconds Thank you very much. Uh it was nice uh to have the questions from participants. 38:59 38 minutes, 59 seconds Um uh it's it's very interesting to see the amount of uh interest which investors 39:06 39 minutes, 6 seconds take in the company and its process and uh we assure that from our side we will 39:12 39 minutes, 12 seconds do our very best to continue uh to run the company professionally and efficiently. Thank you very much. 39:21 39 minutes, 21 seconds Bye-bye. 39:24 39 minutes, 24 seconds Thank you on behalf of Access Capital Limited. That concludes this conference. 39:28 39 minutes, 28 seconds Thank you for joining us and you will now disconnect your lines.