K.P. Energy Ltd — Q4 FY26

K.P. Energy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=dv90GN79aL8 Published: 1 day ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the KP Energy Limited Q4 FY26 earnings conference call hosted by Share 0:10 10 seconds India Securities. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero 0:27 27 seconds on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:34 34 seconds Harsh Patel from Sharing Securities. Thank you and over to you sir. Thank you and good afternoon everyone. 0:42 42 seconds Uh I would like to congratulate the management on very good chat of numbers. 0:46 46 seconds On behalf of Share India Securities, I welcome you all for Q4 FY26 earnings conference call of KP Energy. We are 0:54 54 seconds pleased to have with us the management team rep represented by Mr. Afan Faruk Patel the full-time director Miss Sabana Bajari chief financial officers uh Mr. 1:05 1 minute, 5 seconds uh Dr. Aluk Das group CEO uh Mr. Salim Yahu group CFO uh we we will have the 1:13 1 minute, 13 seconds opening remarks from the management followed by the question and answer session. Thank you and over to you Vinod. 1:20 1 minute, 20 seconds Okay thank you Hush. Good afternoon everyone. uh myself Vinos head investor relation on behalf of management I would 1:27 1 minute, 27 seconds like to extend a very warm welcome to all the investor shareholders and other participants for today's earning call for quarter 4 and FI 2526 1:36 1 minute, 36 seconds along with me on the call are our whole time director group CEO group CFO and CFO they will take us through the 1:43 1 minute, 43 seconds operational financial performance of the company followed by the Q&A sessions uh financial year 2126 has been another 1:51 1 minute, 51 seconds landmark year for the marked by healthy financial performance, strong project executions and strategic business expansion. During the year, company has 1:59 1 minute, 59 seconds achieved significant growth on all the fund including revenue, AITA, PET. 2:04 2 minutes, 4 seconds Overview for the same will be given by CFO. During the year, company also achieved key strategic milestone including securing ISTS connected 2:12 2 minutes, 12 seconds projects, expanding hybrid capability, receiving interstate electricity trading license from CRC. Recently, we have 2:19 2 minutes, 19 seconds become first in India to install 4.2 2 megawatt making India windmill in South Gujarat. With this now I would like to 2:27 2 minutes, 27 seconds hand over the call to our fulltime director Mr. Afan Patil for detailed business review. Thank you once again for joining us today. Over to Afan by sir. 2:36 2 minutes, 36 seconds Thank you sir. Uh good afternoon everyone and thank you for joining us today. I Afan Faruk Patime director of 2:43 2 minutes, 43 seconds KP energy. The next decade of renewable energy will not be led by companies that only generate power but by the companies 2:51 2 minutes, 51 seconds that can integrate integrate generation, transmission, storage and execution into one scalable ecosystem. 3:00 3 minutes And this is exactly the strategy KP Energy has been consistently building towards 3:06 3 minutes, 6 seconds over the years. We have focused on creating an integrated renewable energy platform with capabilities spanning 3:14 3 minutes, 14 seconds energy modeling, land aggregation, wind resource uh assessment, evacuation infrastructure, EHV connectivity, 3:22 3 minutes, 22 seconds project execution and long-term O&DM service. This integrated approach has not only strengthened our execution 3:30 3 minutes, 30 seconds capability but also positioned KP Energy to participate more meaningfully across the evolving renewable energy value 3:38 3 minutes, 38 seconds chain. Financial year 26 has been an important year for KP Energy both in terms of financial performance and 3:46 3 minutes, 46 seconds strategic progress. During the year we crossed 1,500 crores in revenue with 3:53 3 minutes, 53 seconds Abidata exceeding 32 328 crores and pet reaching 181 crores. 4:00 4 minutes These numbers reflect the strength of the execution platform and operational foundation the company has consistently 4:08 4 minutes, 8 seconds built over the years. One of the key strategic development during the year was receiving the CEC interstate 4:17 4 minutes, 17 seconds electricity trading license enabling KT Energy to participate more actively in 4:23 4 minutes, 23 seconds India's evol evolving power market and growing green energy demand. At the same 4:30 4 minutes, 30 seconds time, we continue preparing for the next scale of growth. Today KP Energy has a 4:37 4 minutes, 37 seconds renewable portfolio exceeding 3.7 gawatt project in hand exceeding 2.1 gawatt and 4:44 4 minutes, 44 seconds a long-term vision of crossing 10 gawatt by 2030 to to support this journey. We continue 4:53 4 minutes, 53 seconds strengthening both forward and backward integration through strategic ISTS and STUVivity acquisition while also 5:01 5 minutes, 1 second evaluating future focus opportunity including offshore wind and PSP solution to support grid stability and 5:10 5 minutes, 10 seconds roundthe-clock renewable energy requirement. We also take pride in being the first company in India to install 5:18 5 minutes, 18 seconds the make in India 4.2 2 megawatt 160 wind turbine in South Gujarat reflecting 5:26 5 minutes, 26 seconds our continued focus on advanced technology adoption and execution excellence. As we continue building 5:33 5 minutes, 33 seconds scale, we remain equally committed to creating impact beyond business through healthcare, education, skill development 5:42 5 minutes, 42 seconds and community welfare initiative undertaken by KP Human Development Foundation. Going forward, our focus 5:50 5 minutes, 50 seconds remained on disciplined capital allocation, technology-led project execution, digital transformation across 5:57 5 minutes, 57 seconds operations, strategic infrastructure expansion, and building a future ready renewable energy ecosystem with 6:04 6 minutes, 4 seconds long-term stakeholder value creation at at its course. Thank you for your continued trust and support. Thank you again. 6:15 6 minutes, 15 seconds Yes. Now I uh I will request Savana to please give the financial overview. 6:22 6 minutes, 22 seconds Thank you G. Thank you Afansir. Good afternoon ladies and gentlemen. On behalf of the board of directors and the entire KP family, I extend a very warm 6:31 6 minutes, 31 seconds welcome to our Q4 and FY2526 earnings conference call. I'm Shabbana Bim, CFO at KP Energy Limited and we are grateful 6:39 6 minutes, 39 seconds for your continued trust and the time you have taken to be with us today. With that, let me take you through what has been a truly landmark year for KPNS. I 6:48 6 minutes, 48 seconds will cover our Q4 and fully year results, the broader industry backdrop and our priorities going forward. FYI 6:55 6 minutes, 55 seconds 2526 has been a watershed year for KP Energy and I'm delighted to share that we have delivered record numbers across every meaningful financial matrix. Our 7:04 7 minutes, 4 seconds consolidated total revenue for full year came in at rupes 155.54 cr compared to rupees 958.45 45 cr in 7:13 7 minutes, 13 seconds FY25 a growth of 57% yearonear the revenue from operations grew at 59% to 7:21 7 minutes, 21 seconds rupees 1 1497.09 09 cr. For the first time in our company's history, we have crossed the rupees 1500 cr revenue mark. 7:30 7 minutes, 30 seconds A milestone that speaks to the scale, momentum and execution capabilities of our organization. Our profitability that 7:37 7 minutes, 37 seconds is the IBIDA grew an impressive 68% to rupees 328.44 crores reflecting strong operating 7:45 7 minutes, 45 seconds leverage as our revenues scaled. Our patch for the full year came in at rupees 181.4 4 crores up to 57% from 7:54 7 minutes, 54 seconds rupees 115.33 cr last year. Both all-time highs for the companies. 8:01 8 minutes, 1 second To put this in a perspective, we were a 73 crore revenue company in FY21. We are now a 156 crore revenue business in FY26. 8:11 8 minutes, 11 seconds That is a six-year CAGGR of approximately 83% and it reflects explosive potential of India's renewable 8:19 8 minutes, 19 seconds sector and our unique positioning within it. The fourth quarter was equally exceptional and in many ways it was the 8:27 8 minutes, 27 seconds strongest quarter in our company's history. The consolidated total revenue for Q4 2526 stood at rupees 633.93 8:35 8 minutes, 35 seconds crores up 55% year-onear from a rupees 408.65 65 crores. In Q4 FI25, 8:43 8 minutes, 43 seconds the net sales hit an all-time quarterly high at rupees 631.81 cr registering a remarkable 83% sequential growth from Q3 8:52 8 minutes, 52 seconds FI26 344.96 crores. That sequential acceleration is a particularly strong signal of 8:59 8 minutes, 59 seconds execution velocity that we build specifically through the second half of the year. The Eida for the quarter was 9:06 9 minutes, 6 seconds rupees 133 cr up 71% yearon year and our eida margin expanded by 194 basis points 9:14 9 minutes, 14 seconds to 21% compared to 19% in Q4 FY25 demonstrating that our growth is coming with improved efficiency and not just 9:22 9 minutes, 22 seconds scale the path for Q4 came in at 78.69 69 cr 72% jump from 45.79 cr in the same 9:31 9 minutes, 31 seconds quarter last year. This is the highest ever quarterly pad in KP Energy's history and we are proud of every member of the team who made it possible. 9:40 9 minutes, 40 seconds The ETC and infrastructure development segment is the engine of our business and it has delivered superbly in FI26. 9:48 9 minutes, 48 seconds The revenue from this segment came in at 1451.69 69 cr up 59% year-on-year accounting for the vast majority of our 9:56 9 minutes, 56 seconds total revenues. Our own business while smaller in absolute scale is high quality annually revenue stream that we 10:04 10 minutes, 4 seconds are building in Q4 and by 26. Our own and quarterly revenue surged 350% year-on-year to rupees 5.13 cr. We 10:13 10 minutes, 13 seconds currently manage over 646 megawatt under our O andM portfolio supported by a 24x7 10:20 10 minutes, 20 seconds network operation center running IBM Maximo based AI alerts and SCADA dashboards. As our installed base grows, 10:28 10 minutes, 28 seconds this segment will contribute increasingly to the quality and predictability of our earnings. On the IPB side, KP Energy has an operational 10:37 10 minutes, 37 seconds portfolio of 48.5 megawatt as of year end and we are progressing steadily towards enhancement of the same with a 10:44 10 minutes, 44 seconds new pipeline of 200 megawatt of additional IP capacity currently under development. 10:51 10 minutes, 51 seconds This pipeline once fully operational will transform our recurring revenue base and significantly enhance the quality and predictability of our long-term earnings. 11:01 11 minutes, 1 second One of the most compelling aspects of our investment case is the strength and the quality of our order pipeline. Our current order book stands at nearly 2 11:08 11 minutes, 8 seconds gawatt across multi-year projects with a total value of approximately 3,000 crores providing strong revenue 11:16 11 minutes, 16 seconds visibility in the coming year. During the revenue, we added much awaited new orders to our book for about 230 11:23 11 minutes, 23 seconds megawatt as a testament to our reputation for quality execution. We have also received a CERC central electricity regulatory commission 11:32 11 minutes, 32 seconds interstate electricity trading license which enables us to participate in power markets across the country on a pan India basis. This is a strategically 11:41 11 minutes, 41 seconds important capability that meaningfully broadens our addressable market into the national renewable energy transactions. 11:50 11 minutes, 50 seconds During the year FI26, K ratings had upgraded KP Energy's credit rating by two full notches from tripleB with a 11:58 11 minutes, 58 seconds negative outlook to A minus with a stable outlook. This is also a meaningful recognition of our strengthened balance sheet and robust 12:06 12 minutes, 6 seconds execution track record. To give a sense of how far we have come, our revenues have grown from approximately rupees 442 12:13 12 minutes, 13 seconds crores in FI23 to 486 crores in FI24 and to 958 crores in FI25 and now at 156 crores in FI26. 12:24 12 minutes, 24 seconds During the year, the company has paid intimid share of face value of rupees 5 and the 12:31 12 minutes, 31 seconds board has further recommended a final dividend of rupees.25 25 per equity share subject to shareholders approval at the AGM. It is a reflection of 12:40 12 minutes, 40 seconds financial strengths we have built and our commitment to sharing the fruits of our performance with our shareholders. 12:47 12 minutes, 47 seconds Before I turn to the strategic outlook, I would quickly like to uh specify the performance within the broader industry 12:54 12 minutes, 54 seconds landscape because understanding the macro backdrop is important to see the runway ahead for KP Energy. India's wind 13:02 13 minutes, 2 seconds energy sector had a breakout in FI26 and KP energy was clearly at the center of it. The MNRE mentions that India 13:10 13 minutes, 10 seconds installed 6.05 gawatt of new wind capacity during the financial year 2526 alone the highest annual addition in the country's history. 13:20 13 minutes, 20 seconds With this addition, India's cumulative installed wind capacity has now crossed 56 gawatt cementing our country's position as the fourth largest wind 13:28 13 minutes, 28 seconds energy market in the world. Wind energy today accounts for approximately 9% of the total installed power capacity and a share that will grow in the years ahead. 13:39 13 minutes, 39 seconds Zooming out, India has achieved a total non-fossil fuel capacity addition of 55.3 gawatt in FI26, the highest in any single year in India's history. 13:49 13 minutes, 49 seconds Non-fossil fuel sources now represent over 50% of India's total installed power capacity, a milestone that was 13:55 13 minutes, 55 seconds achieved 5 years ahead of the 2030 target. Wind is not the peripheral part of the story. It is the central to it. 14:04 14 minutes, 4 seconds The scale of India's ambition and therefore our opportunity is staggering when you look at the targets ahead. The government of India has set a target of 140 gawatt of cumulative wind capacity 14:13 14 minutes, 13 seconds by 2030 as against the 56 gawatt at which we stand. This means 84 gawatt of new additions need to happen in roughly 14:21 14 minutes, 21 seconds four years. Even on a more conservative estimate, the India wind report of 2025 specifies that this capacity could be 14:30 14 minutes, 30 seconds doubled from the current level to 107 by 2030. 14:35 14 minutes, 35 seconds On the offshore side, India plans to deploy 30 gawatt of offshore wind by 2030 with initial bids of 4 gawatt being developed on the off course of Gujarat 14:44 14 minutes, 44 seconds and Tamil Nadu. This is a segment where we are actively studying and positioning ourselves to enter. To give you a sense 14:51 14 minutes, 51 seconds of trajectory, India approximately added 1.5 gawatt of wind annually in FI20 and today we have a record addition of 6.05 14:59 14 minutes, 59 seconds in FI26. The curve is bending sharply upward and we expect the trend to continue as a leading end toend balance of plant 15:08 15 minutes, 8 seconds and EPC solution provider for wind and hybrid renewable energy with deep roots in Gujarat and a nearly 2 megawatt of order book in hand and growing windm and 15:16 15 minutes, 16 seconds IP capability. KP Energy is arguably one of the most direct beneficiaries of India's wind energy boom. Every gigawatt 15:24 15 minutes, 24 seconds of new wind installation in India requires BOP and EPC services which eventually leads to an addressable market for our services from India's 15:31 15 minutes, 31 seconds incremental wind capacity. We are not just riding the wave. We are helping to build infrastructure that creates it. As 15:39 15 minutes, 39 seconds we step into FI2627, our priorities are defined and our convection in the sector has never been 15:46 15 minutes, 46 seconds stronger than before. India's renewable energy transition is unfolding at an unprecedented pace and the government's target of 500 gawatt of non-fossil fuel 15:55 15 minutes, 55 seconds by 2030 creates a multi-year structural demand tailwind for companies like us. 16:01 16 minutes, 1 second Our priorities for FI27 are clear. We will scale EPC execution to convert our near 2 gawatt order book into revenues 16:09 16 minutes, 9 seconds with an uncompromising focus on timely project completion and quality delivery. 16:14 16 minutes, 14 seconds We will accelerate our PPE portfolio growth aiming towards consistent annuality income for coming 25 years. We are also actively scouting opportunities 16:22 16 minutes, 22 seconds in other states of India. And underpinning all this, this is KP group's ambitious goal of reaching 10 gawatt total by uh 2030. 16:33 16 minutes, 33 seconds On behalf of the entire leadership team, I thank you sincerely for your continued trust, your engagement and your support in KP Energy's journey. We are proud of 16:41 16 minutes, 41 seconds what we have built and we are even more excited about what lies ahead. We will now open the floor for questions. Thank you. 16:50 16 minutes, 50 seconds Thank you very much. We will now begin with the question and answer session. 16:55 16 minutes, 55 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you 17:03 17 minutes, 3 seconds may press star and two. Participants are requested to use handsets while asking your question. 17:11 17 minutes, 11 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 17:24 17 minutes, 24 seconds Your first question comes from the line of mansi from safety captain. Please go ahead. 17:31 17 minutes, 31 seconds Okay. Uh am I audible? Yes, you are. Yes, ma'am. G, you are. 17:37 17 minutes, 37 seconds Okay. Shan G, my first of all, congratulations for wonderful result. As I as I as I can see that that 17:44 17 minutes, 44 seconds yearon-year growth is 57% in revenues, I had one query when I was going through the PPT this the cash flow the cash flow 17:53 17 minutes, 53 seconds from operations is very much slow visually the previous year. Can you tell me the reason for that? 18:00 18 minutes Yes. So, uh thank you for your question. 18:03 18 minutes, 3 seconds As you can already see it in the result that the inventory has increased considering the upcoming projects that 18:10 18 minutes, 10 seconds we already have on hand, we already need to stock a lot of inventory and uh the geopolitical situation has made it a bit 18:18 18 minutes, 18 seconds difficult for us. So, we just don't want to lapse behind and we want to be secure in terms of inventory with us. Okay. compared to what you have seen it. 18:27 18 minutes, 27 seconds Uh so yeah, compared to what you have seen it in the last year, if you see we still are cash operating uh positive in terms of the operational activity and with an increased inventory. 18:39 18 minutes, 39 seconds Okay. So this only change in the inventory is uh is it due to the dattors also? 18:46 18 minutes, 46 seconds uh dattors no there are not many uh dattors if you see the size like I guess last year we were at 958 crores and this 18:53 18 minutes, 53 seconds year we are at 100 I mean 156 crores so compared to that the data share is pretty much uh same what uh changed the 19:01 19 minutes, 1 second whole trajectory in term of the operating cash flow was only the inventory count okay and what is the cash conversion cycle days 19:10 19 minutes, 10 seconds could you repeat your question cash what I could not give you cash conversion days cycle this Yeah, it depends upon the customer. We have 19:18 19 minutes, 18 seconds different set of customers with us and it ranges from about let's say 100 to 19:26 19 minutes, 26 seconds 150 depending upon the customer 100 to 150 days. Okay. Thank you. 19:34 19 minutes, 34 seconds Thank you. 19:35 19 minutes, 35 seconds Thank you. The next question comes from the line of Ashish Kurana from ENK Capital. Please go ahead. 19:43 19 minutes, 43 seconds Uh thank you. compliments from my side as well for great results in Q4 and FY26. Uh really pleasing to see this 19:50 19 minutes, 50 seconds execution. Uh so my uh first set of questions are probably for Shabbana ma'am. So ma'am u apart from inventories 19:59 19 minutes, 59 seconds other liabilities has also spiked. Uh so is it uh some uh consumer customer advances or like some unrecognized 20:07 20 minutes, 7 seconds revenue? So could you throw some light on that? 20:10 20 minutes, 10 seconds So uh as uh we already specified that we wanted to secure uh our uh what do you call the uh supply chain and that is the 20:20 20 minutes, 20 seconds reason why we have made advances to the customers as well and we have received advances from the customer as well. 20:27 20 minutes, 27 seconds So you see the the entire geopolitical situation right now in is in such a position that in case we miss out on 20:34 20 minutes, 34 seconds certain situations we will not be able to deliver it faster. 20:40 20 minutes, 40 seconds Okay. So uh uh broadly we assume that uh if and when the situation settles so our working capital update cycle would uh 20:48 20 minutes, 48 seconds you know settle down to the what exactly cycle uh yeah you see there are two factors which are affecting it as I said 20:56 20 minutes, 56 seconds there is of course a growth in terms of revenue. If you're comparing it with a revenue which has grown by 55%. Then that has to have a working capital also 21:04 21 minutes, 4 seconds in hand. Plus we have the upcoming orders also for which we need to keep the site uh implementation ready. So we need to have certain investments in terms of working capital cycle as well. 21:15 21 minutes, 15 seconds So uh yes with the growth definitely the working capital cycle would be a bit higher but then uh that is a part of the normal operating business. 21:26 21 minutes, 26 seconds Yeah. So uh that is what I was asking. 21:28 21 minutes, 28 seconds So uh if and when you know the situation in terms of this geopolitics uh kind of subsides so the working capital update 21:35 21 minutes, 35 seconds would be higher but it would be proportionally higher right not yes and also yeah and also that the uh inventory the higher inventory that you see right now will eventually get 21:44 21 minutes, 44 seconds converted into data and then eventually be uh materialized in terms of going forward. 21:52 21 minutes, 52 seconds Got it. And uh secondly ma'am uh so uh usually in our fourth quarter uh the uh gross margins shrink. So I think part of 21:58 21 minutes, 58 seconds it could be the uh lower pls uh in our ITP projects. Uh there any other costs 22:05 22 minutes, 5 seconds that go up when we like execute heavily especially in the last quarter. 22:12 22 minutes, 12 seconds So I I don't see any specific rise in terms of the cost. If you see the cost more or less are uh the same in terms of 22:19 22 minutes, 19 seconds what we have seen before. If you see compare it with the financial year last year 25 the IBIDA stood at 20.46%. 22:27 22 minutes, 27 seconds And when you see it current it is 21.82. 22:29 22 minutes, 29 seconds So on the contrary in terms of percentages we have already improved on the IBIDA margins. So I actually uh do not see any concern on that side. 22:39 22 minutes, 39 seconds No I was just clarifying. So gross margins because I think our power production probably because of lower PLFS is uh lower. So that part of 22:47 22 minutes, 47 seconds revenue probably uh being lower uh and being high margin. So it falling probably contributes to lower gross margin. So that is the understanding 22:55 22 minutes, 55 seconds right in quarter four I'm talking about only quarter four you're talking about. 23:01 23 minutes, 1 second So in quarter four if you see uh no I there's a very nominal change in terms 23:07 23 minutes, 7 seconds of the power sales from 6.18 to 5.62. So uh well it is not that much to uh 23:14 23 minutes, 14 seconds consider but I guess uh no that's not the scenario I I did not understand your question because the overall gross margins are still higher. 23:24 23 minutes, 24 seconds Uh okay ma'am I can I think take that up separately. Uh uh another one was that uh so in our projects that uh you know 23:31 23 minutes, 31 seconds uh we ourselves procure turbine versus ones where we don't uh so how do the margins compare because when we procure 23:39 23 minutes, 39 seconds we probably would have some markups related to procurement logistics and all uh so what kind of a delta is there? 23:47 23 minutes, 47 seconds So in terms of turbine you need to first understand that we already pre-book and reserve the turbines in advance and that is where we get the leverage in terms of 23:56 23 minutes, 56 seconds margins coming up with the other customers. So yes of course the margins will definitely not be similar in terms of what we are expecting in an EPC 24:04 24 minutes, 4 seconds contract but we still have a fair share of margin when we pre-book it and ensure that the deliveries are made within the timelines. 24:14 24 minutes, 14 seconds So ABC contact with and without turbine would have slight delta between the margins, right? Yes. 24:22 24 minutes, 22 seconds Uh got it ma'am. Last two questions from my side. Uh so uh in our IPV portfolio so we have uh earlier I think we have 24:29 24 minutes, 29 seconds this target of 100 uh megawatt and now I think we are targeting 250. Uh so how far can it go and uh what would be the 24:37 24 minutes, 37 seconds plans to fund it especially for capeex this year? 24:41 24 minutes, 41 seconds So there are two 100 megawatt orders that we have bagged and uh both of them for which one for one we already have entered into a power purchase agreement. 24:50 24 minutes, 50 seconds The other is still pending and uh both of them have a timeline of 24 months from the date of PPA. So while the first one which is currently the PP is being 24:58 24 minutes, 58 seconds signed has a timeline from 15th of April 2026 to about 15th of April 2028. So we 25:06 25 minutes, 6 seconds have a target of uh 24 months by the time we deliver and uh we will definitely try to do it better. Uh coming to an estimated project cost 25:14 25 minutes, 14 seconds roughly uh we can say that about uh 1,700 plus crores of total both the projects put together will be the 25:20 25 minutes, 20 seconds project cost of which uh about 450 plus crores would be through equity and balance would be through debt. 25:30 25 minutes, 30 seconds Got it fair. And one last broader question for uh everyone. Uh so in view of the 25:37 25 minutes, 37 seconds current energy disruptions uh for the wind sector particularly why I think the government has these targets by 2030 and 25:44 25 minutes, 44 seconds maybe some RPOS as well. But do we see uh or do we you know uh anticipate any stronger flagship uh policy pushes from 25:52 25 minutes, 52 seconds the government for wind sector adoption maybe on subsidy side or incentive side like I mean we have a quite a few for solar but do we see anything changing uh 26:01 26 minutes, 1 second significantly for the wind sector given these disruptions from a government policy side? 26:07 26 minutes, 7 seconds I I would I would request our group CEO Dr. Gas to please take this question. 26:12 26 minutes, 12 seconds Yeah, your question is very legitimate uh and the concern area but today you know what happened the government has taken uh the step for that because 26:21 26 minutes, 21 seconds nowadays that uh the demand curve has come the reliable power in terms of wind solar both together to the 26:28 26 minutes, 28 seconds roundthe-clock operation. So when it is coming to round thec clock operations so you need solar and wind both together they should complement each others and I 26:36 26 minutes, 36 seconds said that is where the growth trajectory is coming like that way suppose today if you need uh you know roundthe-clock operations or farm and dispatchable 26:45 26 minutes, 45 seconds power the reliable power then this factor goes up to more than 70 80%. So 26:51 26 minutes, 51 seconds there wind must be a predominant factor because solar has got the limitation of land load factor. Wind has got a 26:58 26 minutes, 58 seconds enhanced power load factor. So so if you reach to that kind of target market which is demand curve today. So you have 27:06 27 minutes, 6 seconds to have the wind demand today and that is why wind is predominantly much more requirement when you went to the RDC and FDR power round the puls. 27:16 27 minutes, 16 seconds Okay. You mean uh with more solar projects coming in they would probably be have an additional element and probably be more on the hybrid side. Is my understanding correct? 27:27 27 minutes, 27 seconds No there are what I mean both the things are coming up like let's say like that today there is a demand of 140 gawatt as 27:36 27 minutes, 36 seconds told and there is about uh you know demand of 84 gawatt still there 2030 up to that demand curve with the 500 gawatt 27:45 27 minutes, 45 seconds with the power there's a demand curve is already placed now how a company will make their own trajectory to fulfill that project we have to have planned 27:53 27 minutes, 53 seconds based on of the resource planning and all that is Thank you. The line for the current participant has dropped from the queue. 28:06 28 minutes, 6 seconds We'll move on to our next question. Our next question comes from the line of Anikate Fonda, an individual investor. Please go ahead. 28:14 28 minutes, 14 seconds Uh hello sir. Uh good afternoon. My question is regarding like uh what is like uh the like uh the wind power all 28:24 28 minutes, 24 seconds the projects will be coming will it be executed by the KP energy which you know KPI green will be winning uh whether it 28:32 28 minutes, 32 seconds is onsore and offser and what is the status of about like are we expected to receive any projects for offser like uh 28:40 28 minutes, 40 seconds what's the government plan and how much KP can capture the KP energy can get as a percentage of that uh you know uh 28:48 28 minutes, 48 seconds contract and what is the revenue and profit expectation which we can have 28:55 28 minutes, 55 seconds from KP energy for this finance year and thank you for your question I understand there are three sets of 29:02 29 minutes, 2 seconds questions within one question one you were speaking about whether the wind projects of KPI will be executed by KP energy I will take that question about 29:11 29 minutes, 11 seconds your second question on the offshore uh uh projects I would Leave that question to Dr. Das and the profitability 29:19 29 minutes, 19 seconds question also I will take it up. So the first and the third question I will address. Uh coming to uh the wind power 29:26 29 minutes, 26 seconds project execution. So I would like to specify here that uh while Cry Energy is standing at a very uh unique position in 29:34 29 minutes, 34 seconds terms of its capacity to execute the uh renewable energy projects from the wind power perspective. So as I have uh 29:42 29 minutes, 42 seconds mentioned earlier also in my transcripts before that uh there are not many many uh competitors in terms of wind segment 29:49 29 minutes, 49 seconds and KP energy has its own expertise of about uh 1.5 plus decades and uh in execution of wind power. So while KPI 29:58 29 minutes, 58 seconds green has its own IP project where it is a capex for KPI in such a situation instead of KPI looking for an outsider 30:06 30 minutes, 6 seconds to deliver a win project to them it has always been a win-win situation for both 30:13 30 minutes, 13 seconds the entities where the project is being executed with good expertise by KP energy itself and in such a scenario yes 30:21 30 minutes, 21 seconds the IP segments of KPI through uh for wind segment will be executed by KP 30:28 30 minutes, 28 seconds energy on arms length basis. I understand uh I have answered your question. Uh over to Dr. D on the offshore question. 30:36 30 minutes, 36 seconds Yeah, regarding that offshore initiatives uh there are fundamentally government of India has identified two states predominantly one is Gujarat 30:45 30 minutes, 45 seconds another is Tamil Nadu. So they planned for uh 1 gawatt uh first phase uh the 30:52 30 minutes, 52 seconds projection by which they had called for a stakeholder consultations. Uh how best projects can be uh start started in 31:01 31 minutes, 1 second India because most of the technology available uh today is not available in India. Mostly it is Chinese or some of 31:09 31 minutes, 9 seconds the European countries and product capacity today most commercial viable capacity is about 12 to 16 megawatt 31:16 31 minutes, 16 seconds single turbine which is onshore there is uh you know five five mega turbines are so ministry was taking a stakeholder 31:24 31 minutes, 24 seconds consultations about uh what kind of uh you know benefit they can give what kind of tariff they can decide for a 31:32 31 minutes, 32 seconds commercial scale so that project can be viable and what could be VG VGF can be given. So I think MNR is taking that 31:40 31 minutes, 40 seconds part as a consultancy part from their own consultant as well as the wind data validation uh from new 31:49 31 minutes, 49 seconds NIW national institute of wind energy assessment. So these are the bodies. So this is very nent stage. Obviously they will frame out the tariffs and they will 31:57 31 minutes, 57 seconds ask that what kind of VGP VGP they can declare based on that they will declare a policy related matter. As for the KP 32:07 32 minutes, 7 seconds is concerned we are already uh geared up to have some sort of discussion with various customers various consortium 32:15 32 minutes, 15 seconds partners and all. So on the quality is very clear from central government Minar we will be in a better position to the equip oursel to offer the projects in 32:23 32 minutes, 23 seconds India and regarding the FY27 expectation. 32:33 32 minutes, 33 seconds So as uh our honorable CMD sir has been telling about 40 to 50% growth is what we are expecting in the coming years and 32:41 32 minutes, 41 seconds we already have sufficient orders in hand for the same. 32:45 32 minutes, 45 seconds Like uh can you give an amount what is the outstanding order book? Uh as I said it's about 3,000 plus cr. 32:55 32 minutes, 55 seconds Okay. Okay. Thank you so much. People are doing a great job. Uh thank you. Thank you so much. Thank you. 33:03 33 minutes, 3 seconds Thank you. The next question comes from the line of Park Cotc from Plus 91 Asset Management. Please go ahead. 33:10 33 minutes, 10 seconds Hi Shavana ma'am. Congratulations to you and your team for delivering a good set of numbers. Um most of my questions have been answered ma'am just some color on 33:19 33 minutes, 19 seconds why the unit generation on a quarteronquarter basis is declining for our IP portfolio. um even uh IP revenue 33:28 33 minutes, 28 seconds on a Y basis for Q4 has declined. So maybe some cover on that would be helpful. 33:37 33 minutes, 37 seconds Uh yes. So while Q4 of FI25 and Q4 of FI26 there is a marginal uh decrease in 33:44 33 minutes, 44 seconds terms of the wind performance and that is the reason why there is a small decrease. However, uh we understand that 33:51 33 minutes, 51 seconds this is only season uh approach and it will be taken its own it'll be taking its own course during the upcoming season as well. Nothing else nothing to 34:00 34 minutes worry terms of the execution or the operating assets of the company. Okay. Thank you ma'am. 34:09 34 minutes, 9 seconds My pleasure. 34:11 34 minutes, 11 seconds Thank you. The next question comes from the line of Darin Pandya from Pinterest Capital. Please go ahead. 34:19 34 minutes, 19 seconds Hello. 34:21 34 minutes, 21 seconds Yes, Dash, you are audible. Thank you so much. 34:24 34 minutes, 24 seconds Good evening. Uh, my first question is what is the order pipeline that we see today? 34:30 34 minutes, 30 seconds 3,000 plus cr almost 2 gawatt and 3,000 crores. 34:36 34 minutes, 36 seconds Okay, understood. And uh this current 2 gawatt order book that we have uh as far as I remember this were supposed to be 34:44 34 minutes, 44 seconds completed by around September October last year. So have we added some in the existing order book also and if not what 34:52 34 minutes, 52 seconds is the what is the expected timeline for this order book to be completed? 34:57 34 minutes, 57 seconds So uh we have added three more orders from the last quarter and which is about 230 plus megawatt and uh as I said 35:06 35 minutes, 6 seconds before yes we did have the timelines up to September but uh then there are more additions to it about uh 700 plus cr 740 35:15 35 minutes, 15 seconds plus crores of orders have been added uh excluding GS value during the last quarter and uh there is where you can 35:23 35 minutes, 23 seconds see that there are movements in terms of the current order book as And while majority of our projects will get 35:30 35 minutes, 30 seconds completed by FI27, we look further more additions to the order book in the coming months. 35:37 35 minutes, 37 seconds So FI27, we expecting this order book to be completed. 35:41 35 minutes, 41 seconds Uh well over yet we always plan a bit higher. 35:47 35 minutes, 47 seconds Correct. Understood. And uh one more question is with regards to uh we are not generating enough cash free 35:55 35 minutes, 55 seconds cash flows in from our KP energy uh company. What are the steps are we taking to you know to generate cash and 36:03 36 minutes, 3 seconds you know which will help us eventually to you know uh take low debt other than what we had seen today. 36:10 36 minutes, 10 seconds Uh I would probably like to uh draw your attention to a couple of facts. uh as I mentioned earlier that this time we have 36:19 36 minutes, 19 seconds we are carrying an inventory for the uh WTG the wind turbines and that is the reason why you would find that uh uh 36:26 36 minutes, 26 seconds some of our cash is uh invested in the inventory. uh also going forward like we have uh bagged the 230 plus megawatt of 36:35 36 minutes, 35 seconds the orders in the last quarter and the mobilization initial mobilization does require some working capital investment 36:42 36 minutes, 42 seconds and as you already know that we have the upcoming uh projects of 100 megawatt each two projects of 100 megawatt each 36:50 36 minutes, 50 seconds in the IP segment so there is an initial investment in terms of uh you know startup being taken for these projects 36:58 36 minutes, 58 seconds so um yes The cash is definitely generated and it is then invested in the respective required activities. 37:07 37 minutes, 7 seconds Understood. Well, that's fair. I understood that. Uh what would be the interest cost expected for this year? 37:13 37 minutes, 13 seconds Are you planning to take a few more debt on this? 37:18 37 minutes, 18 seconds So uh come with the upcoming ITP project definitely we will have to uh plan the debt structure the project funding for that particular debt and we expected to 37:27 37 minutes, 27 seconds range between uh 7 and 1/2 to 8 and 8 and 1/2%. Okay. 37:33 37 minutes, 33 seconds Depending upon our cycle yeah okay I'll fall back in with you. Thank you so much. Thank you. 37:40 37 minutes, 40 seconds Thank you. The next question comes from the line of part Gala and individual investor. Please go ahead. 37:47 37 minutes, 47 seconds Um so congratulations to the entire KP team for delivering such exceptional results. My question was on the CERC 37:56 37 minutes, 56 seconds power trading license. So what are our broad plans with that license and how are we going to generate revenue and by when like with that? 38:08 38 minutes, 8 seconds Uh thank you Karth. uh before I go into uh the numbers that we are expecting, I would like to throw a bit of light on 38:16 38 minutes, 16 seconds the current industry numbers. So, India roughly generated about 1830 billion 38:23 38 minutes, 23 seconds units of electricity in FI25 of which about 230 billion units were traded through short-term markets. Now, this 38:32 38 minutes, 32 seconds shows that uh the reliance in terms of trading is much higher. It's more than about you know 13% in terms of the total 38:40 38 minutes, 40 seconds electricity generation. If I draw your insight to the uh Indian energy exchange number uh the total electricity volume which was traded in FI26 is 141 billion. 38:54 38 minutes, 54 seconds If you compare it with a yearon-year growth it is about 17%. So going forward while electricity generation can be in a 39:03 39 minutes, 3 seconds particular state considering the ease of doing business but the trading will permit the utilization of energy pan 39:11 39 minutes, 11 seconds India and that is where we stand to benefit out of it whereby whatever energy we generate or even whatever we 39:19 39 minutes, 19 seconds outrightly buy from a particular seller we can trade pan India and be a part of this extremely strong industry. 39:29 39 minutes, 29 seconds Okay, understood. And uh like what uh if we start this then what impact would there be on the uh working capital 39:36 39 minutes, 36 seconds cycles or uh on other financials maybe? 39:42 39 minutes, 42 seconds So because it is predominantly a trading activity and power is a segment where the payments are to be made in advance. 39:48 39 minutes, 48 seconds I do not see any stretch in terms of working capital in this particular segment. 39:53 39 minutes, 53 seconds Okay. Okay. Thank you ma'am. Thank you so much. 39:58 39 minutes, 58 seconds Thank you. A reminder to everyone, if you wish to register for a question, please press star and one. Our next question comes from the line of Manohar Singh Maha, an individual investor. 40:09 40 minutes, 9 seconds Please go ahead. 40:10 40 minutes, 10 seconds Hi ma'am. Uh my question is uh the number is good and all things are good and my question is is promoter willing 40:19 40 minutes, 19 seconds to buy this share at this price? Any planning for that? 40:26 40 minutes, 26 seconds Uh so Manava Singh GI thank you for a very candid question from your side. Uh of course the promoter will definitely 40:33 40 minutes, 33 seconds be more than eager to invest into his own equity and if you recall uh in the last financial year we have already 40:41 40 minutes, 41 seconds issued share warrants and the promoter has bought the share warrants for a value approximately 28 crores. So going forward also he will look into the same. 40:52 40 minutes, 52 seconds Okay. Okay. Thank you. Thank you. Thank you. 41:00 41 minutes As there are no further questions. Yes sir. 41:06 41 minutes, 6 seconds Okay. Thank you. Uh thank you everyone for your active participation in the call and uh we hope that we have been 41:15 41 minutes, 15 seconds able to answer all your queries to your fullest satisfaction and uh we look forward to your continued supports your uh and cooperation in the company. 41:26 41 minutes, 26 seconds Thanks once again. 41:29 41 minutes, 29 seconds Thank you on behalf of sharing. Yes ma'am. 41:34 41 minutes, 34 seconds I understand we have one more person in the queue. Yes, we have a last minute registration coming from the line of Miss Shikha Mata 41:42 41 minutes, 42 seconds from time and time advisor. Please go ahead. Hello. Hi. Am I audible? Hi Shika. Yes. 41:50 41 minutes, 50 seconds Hi. Nice to speak to you again. Uh I just wanted to understand a few things. 41:55 41 minutes, 55 seconds One which is uh you know you spoke about our 3,000 K order book and our 3,000 K 42:01 42 minutes, 1 second pipeline. So on the order book how much is um you know group entity orders and how much is non-group orders on the existing? 42:11 42 minutes, 11 seconds So about yeah on the 3,000 cr order book approximately 50% is uh from uh the group entity and the balance 50 is outside. 42:21 42 minutes, 21 seconds Got it. And uh on the pipeline so uh pipeline is all outside the group. 42:29 42 minutes, 29 seconds We currently we do not include any uh uh group entity in terms of the pipeline as in when the order from the group entity comes it is included in the order book. 42:38 42 minutes, 38 seconds It is not included in the pip. 42:40 42 minutes, 40 seconds Understood. Understood. No that makes lots of sense. Uh other than that all my questions have been answered. Thanks so much for taking my last minute. 42:48 42 minutes, 48 seconds Thank you. Thank you. Thank you. Thank you. 42:59 42 minutes, 59 seconds As there are no further questions from the participants uh management, do we have any further closing remarks? 43:06 43 minutes, 6 seconds So uh thank you. Thank you all the shareholders and investors for your uh active participation in this call and uh 43:15 43 minutes, 15 seconds we hope that all the answers have been answered all the questions have been answered to your fullest satisfaction and we look forward to your support and cooperations going forward as thank you. 43:28 43 minutes, 28 seconds Thank you on behalf of Share India Securities that concludes this conference. Thank you 43:36 43 minutes, 36 seconds everyone for joining us and you may now disconnect your line.