Orient Green Power Company Ltd — Q3 FY26

Orient Green Power Company Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=3FjkutLog_Y Published: 2 months ago

0:01 1 second Good morning ladies and gentlemen and welcome to the earnings conference call for Q3 and 9 month FY26 for Orient Green Power Company Limited. 0:11 11 seconds Orient Green Power Company Limited OGPL headquartered in Chennai is one of India's leading independent renewable power producer. 0:20 20 seconds The company operates over 380 megawatt of wind power capacity across key Indian states and 10.5 megawatt wind farm in 0:30 30 seconds Croatia. Also, the company developed a 7 megawatt solar capacity during current quarter. As a reminder, all participant 0:38 38 seconds lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the management discussion concludes. Should you need 0:47 47 seconds assistance during the conference call, please signal an operator by pressing star followed by zero on your touchstone phone. Let us now begin with the 0:56 56 seconds introduction of the management team. We have with us today Mr. T. Shraman, managing director and CEO of the company. I would now like to request Mr. 1:07 1 minute, 7 seconds T. Shivraman, managing director and CEO to give his opening remarks and share company's performance in Q3 and 9 month 1:15 1 minute, 15 seconds FY26 with the audience. Thank you and over to you sir. 1:20 1 minute, 20 seconds Thank you. Good morning ladies and gentlemen. We are pleased to welcome you to OPPL's earning calls for the third quarter and 9month period ending April 1:28 1 minute, 28 seconds 26. Thank you for taking the time to join us and for your uh continued support to the company. 1:36 1 minute, 36 seconds uh Q3 has been strategically significant for the company. We successfully commissioned a 7 megawatt solar power 1:43 1 minute, 43 seconds project uh the first solar power project in OGPL's portfolio and we have closed contracts for development of around 28 1:52 1 minute, 52 seconds megawatts of additional green field capacity around 18 megawatts of solar and 10 megawatt of wind. Both these uh should be commissioned by May, April May 2:01 2 minutes, 1 second of uh uh 27 sorry 26. 2:07 2 minutes, 7 seconds Uh also from the depth debt side we have the bulk of our debt has been upgraded to tripleB which will enable us to 2:15 2 minutes, 15 seconds further optimize our uh cost of borrowing and access capital at more competitive rates. In addition to the green field capacity of 28 megawatt 2:24 2 minutes, 24 seconds which we are which is under construction, we have entered into a contract to repower around 6 megawatt of wind uh at one of our existing wind 2:31 2 minutes, 31 seconds farms. This had a set of older assets which were not performing as well as uh we would like and this 6 megawatt 2:40 2 minutes, 40 seconds repowering is the first project uh under the newly approved Tamil Nadu repowering policy and it is definitely a a 2:48 2 minutes, 48 seconds milestone for the company. uh we were we will be the first to commission under the new policy. We are currently uh 2:55 2 minutes, 55 seconds involved in reviewing our other old wind assets to see which uh would uh would come up for repowering going forward. I 3:03 3 minutes, 3 seconds believe that uh this combined with our green field capacity will definitely strengthen our uh oper position and 3:10 3 minutes, 10 seconds improve our operational efficiency uh and help us serve our customers better. 3:16 3 minutes, 16 seconds uh these two three initiatives together will add about 36 crores to a bit peranom on a uh ongoing basis. In terms 3:24 3 minutes, 24 seconds of performance uh our business is seasonal in nature especially since we are u uh until Q3 predominantly a wind 3:33 3 minutes, 33 seconds company. A significant portion of our generation happens in the first half of the fiscal year. The second half typically has lower generation. 3:41 3 minutes, 41 seconds generation during the third quarter was more or less consistent with historical patterns. Operation stability was uh 3:49 3 minutes, 49 seconds maintained quite uh favorably through the quarter. The first half uh had favorable wind conditions as well as uh 3:57 3 minutes, 57 seconds improved grid availability which uh has positively impacted the profitability for 9 months. Now quickly 4:05 4 minutes, 5 seconds running through the financial highlights for Q3 FI26 the total income was 40.06 06 crores and a bit of 17.907 crores 4:14 4 minutes, 14 seconds broadly in line with the corresponding quarter in the previous year. Loss before exceptional items reduced to 18.16 crores as against 21.81 crores in 4:23 4 minutes, 23 seconds Q3 FI25 uh which is an improvement of about 17%. improvement is primarily due to reduction in interest expense. 4:32 4 minutes, 32 seconds For the 9 months ended FI Q3 FI26, the total income increased by about 16% year-on-year basis to 268.95 4:41 4 minutes, 41 seconds crores. IITA rose by 14% year-on-year to 187.3 crores. Net profit grew by nearly 4:47 4 minutes, 47 seconds 54% year-on-year to 88.13 crores. The improved performance during the current fiscal is largely attributable to 4:55 4 minutes, 55 seconds favorable wind patterns and the better wind machine availability during the wind season along with a decline in 5:02 5 minutes, 2 seconds finance cost of over 20% supported by improved rate ratings, debt repayment and better financial management. 5:09 5 minutes, 9 seconds The profitability was also supported by a onetime refund of excess interest charged by our lenders in previous prior periods. 5:18 5 minutes, 18 seconds With the growth and repowering of initiatives uh briefed above, we remain aligned with our capacity with our strategy of deploying higher capacity 5:27 5 minutes, 27 seconds turbines, expanding the solar capacity and developing hybrid wind solar uh projects. This will allow us to build a 5:35 5 minutes, 35 seconds more balanced, sustainable and future ready portfolio. Currently we operate 389 megawatts of capacity comprising 3 5:42 5 minutes, 42 seconds 382 megawatt of wind and 7 megawatt of solar. Uh with additional capacity and repowering underway we will we are confident that we will our growth 5:50 5 minutes, 50 seconds momentum will improve and we will return improved provide improved returns to our shareholders in the coming quarters. 5:58 5 minutes, 58 seconds Uh overall the first nine months of the current fiscal have been encouraging and uh we look forward to uh positive 6:05 6 minutes, 5 seconds outlook going forward. The uh regulatory environment has also been uh quite benign. We have had a good uh uh outcome 6:14 6 minutes, 14 seconds in the Tamil Nadu repowering policy which uh which stabilizes uh the outlook for our older wind turbines and allow us 6:22 6 minutes, 22 seconds to continue operating our old turbines until they are ready for repowering. So thank you again for joining us and uh I look forward to your continued support. 6:30 6 minutes, 30 seconds Now happy to take questions. Thank you very much sir. 6:36 6 minutes, 36 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 6:46 6 minutes, 46 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 6:51 6 minutes, 51 seconds Participants are requested to use handset while asking a question. 6:56 6 minutes, 56 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 7:09 7 minutes, 9 seconds Participants to ask a question you may press star and one. 7:16 7 minutes, 16 seconds First question is from the line of Amit Agava and company. Please go ahead. 7:23 7 minutes, 23 seconds Yeah, good afternoon sir and thank you for the opportunity. Am I audible? Yeah, you're audible. 7:28 7 minutes, 28 seconds Yeah, thank you sir. So, so, so what is the realistic road map and timeline to achieve the 1G capacity which is announced? 7:34 7 minutes, 34 seconds Yeah, we are in conversations with a couple of people because obviously 1 GW by organic acquisition is going to take its own time. Uh we are uh in 7:43 7 minutes, 43 seconds conversations with uh multiple people but we are not yet at a stage where we can uh discuss with the uh uh with the 7:50 7 minutes, 50 seconds public. So we are I think you will probably hear something from us in the next couple of quarters 7:58 7 minutes, 58 seconds and sir can you share the what is the current consolidated debt equity ratio and the blended cost of interest post refinancing. 8:06 8 minutes, 6 seconds So our current total debt is uh just one second is 57 crores at uh blended interest cost about 9.15%. 8:20 8 minutes, 20 seconds This is post refinancing sir. Post refinancing. 8:27 8 minutes, 27 seconds Yeah, this is post refinancing. This is the current status as of end of Q3. 8:33 8 minutes, 33 seconds So the bulk of the debt is with Irida and we have some debt from HDFC and CUB 8:41 8 minutes, 41 seconds about the pref issue I think so company or the subsidies about to come out with a pref issue right. 8:49 8 minutes, 49 seconds No, we are not coming out any profit at the moment. There will be sub prefissue from Delta which is the subsidiary which 8:56 8 minutes, 56 seconds holds the uh solar which will be holding the solar assets from the parent. So that is only from the parent and from 9:03 9 minutes, 3 seconds group captive customers. So we are not raising money from the public. 9:07 9 minutes, 7 seconds Okay. It is only from the parent company. 9:10 9 minutes, 10 seconds Is only from the parent company and from uh the investors who will be buying power from us. 9:17 9 minutes, 17 seconds And last question for myself. Can you share? 9:19 9 minutes, 19 seconds Yeah. Yeah. So, so can you share OM cost per megawatt and the trend if possible? 9:25 9 minutes, 25 seconds See, O andm cost is per megawatt is a little difficult to look at because we have two sets of machines. The larger 9:34 9 minutes, 34 seconds turbines which perform give us the bulk of our IITA have a relatively lower OM I mean per megawatt cost but the lower 9:42 9 minutes, 42 seconds cost per kilowatt hour generated whereas the older turbines typically have a higher OM cost. So our total OM cost uh 9:49 9 minutes, 49 seconds was about uh uh if I take the last year fully which is a more this thing is about 52 crores 9:57 9 minutes, 57 seconds uh on a total capacity of about 380 megawatt. So you can do the math but that's that's the overall figure. 10:06 10 minutes, 6 seconds Thank you sir. I will join back with you. Thank you all the best. Okay. Thank you. 10:13 10 minutes, 13 seconds Before we move to the next question, a reminder to the participants to ask a question you may press star and one. 10:21 10 minutes, 21 seconds Next question is from the line of Vipul Kumar Sha from Sumangal Investments. Please proceed. 10:27 10 minutes, 27 seconds Hi thanks for the opportunity. So can you give the details of this repowering scheme of Tamil Nadu means what type of 10:36 10 minutes, 36 seconds support you are getting from the state for repowering and uh what type of uh yield improvement you see post uh this 10:45 10 minutes, 45 seconds implementation of this scheme? Yeah. So basically Yeah. Yeah. Go ahead. What is the last part? 10:53 10 minutes, 53 seconds Yeah. So how many megawatt we are uh going for repowering repowering. 11:00 11 minutes Okay. So the Tamil Nadu basically it is a life extension come repowering policy which basically states that any turbine 11:08 11 minutes, 8 seconds which is more than 20 years old which is within has reached the end of its original design life. uh there was I 11:16 11 minutes, 16 seconds mean there was a little lack of clarity as to whether those turbines can continue to operate. So today the repowering the life extension and reposing policy says that these turbines 11:25 11 minutes, 25 seconds can continue to operate subject to being inspected by third party agencies and things to ensure that they are safe to operate both on a mechanical and 11:33 11 minutes, 33 seconds analytical side. And there is an an annual fee that we have to pay to the electricity board to allow the older turbines to continue to operate which is 11:42 11 minutes, 42 seconds a reasonable fee. We have no complaint about that fee. The second part of it is if the uh turbine owner decides to 11:49 11 minutes, 49 seconds repower then there have been some concessions made in terms of spacing between the turbines. So typically when a new turbine is uh or new set of 11:58 11 minutes, 58 seconds turbines have to be installed. There is a requirement that the spacing between turbines shall be five times the diameter of the rotor. Seven times there 12:06 12 minutes, 6 seconds are some ratios. So on repowering those ratios have been relaxed. So the turbines can be spaced a little closer 12:14 12 minutes, 14 seconds uh which uh from from a obviously from a operation point of view it helps us put more turbines in the same area and 12:21 12 minutes, 21 seconds technically also I mean the old spacing requirement was too generous and too conservative. So this is more realistic. 12:28 12 minutes, 28 seconds So these are the two and plus uh there is a fee which has been determined for repowering how much you have to pay for uh repowering the turbines in terms of performance improvement. 12:40 12 minutes, 40 seconds due to repowering it varies depending on the performance of the old turbines. The to give an example for the first asset 12:48 12 minutes, 48 seconds that we are planning to repower the PLF before repowering or the PLF current PLF in that asset was in the low single 12:54 12 minutes, 54 seconds digits. I think we had about 6 7% uh PLF only because they were very old turbines. We were keeping them alive because there was no policy to repower 13:03 13 minutes, 3 seconds so they were just kind of running. uh the new turbines that we are installing will have uh PLF north of uh in the 13:10 13 minutes, 10 seconds order of 30% plus but we are having less capacity than we had. So we have a 10 megawatt wind farm which we are 13:18 13 minutes, 18 seconds installing only 6 megawatt of new turbines because uh space in that land is not available for more. Once these 13:25 13 minutes, 25 seconds stabilize, we will probably put solar in the balance land to meet up the 10 megawatt installed capacity. That also 13:34 13 minutes, 34 seconds has been permitted in the repowering policy that any repowered wind project can automatically convert into wind plus solar hybrid. So we are able to 13:44 13 minutes, 44 seconds optimally utilize both the land that we have and the grid connectivity that we have. 13:49 13 minutes, 49 seconds So, so each each of our new each of the other projects we are now analyzing to see what the current PLF is, what the new PLF will be after repowering and 13:58 13 minutes, 58 seconds whether the delta in investment gives us an acceptable IR to knock down the old turbines to repower. 14:05 14 minutes, 5 seconds So if I understood you correctly, this 10 megawatt older turbines will be replaced by 6 megawatt new turbines 14:13 14 minutes, 13 seconds which will give you PLF of approximately 30%. Right sir. Right. 14:22 14 minutes, 22 seconds So that will uh for this particular 10 megawatt asset what can realistically we 14:29 14 minutes, 29 seconds can expect how much more aita from the same asset. 14:34 14 minutes, 34 seconds So we are looking at about 7 crores of EITA from 7 7 and a half crores of EIA 14:40 14 minutes, 40 seconds from that 6 megawatt of new capacity and previously what what was the AIA for 14:47 14 minutes, 47 seconds that particular asset nothing much because by the time we cover the time cost and things like that that was barely breaking even so it was 14:55 14 minutes, 55 seconds uh less than a cr we will take more repowering initiatives as we go on as we go again 15:03 15 minutes, 3 seconds post analysis of this this project, right? 15:06 15 minutes, 6 seconds Exactly. No, no, we will not see this project. We know what will happen. What will what we will do is we were waiting for the policy to come out. The policy came out only last month. So, we did not 15:15 15 minutes, 15 seconds want to kind of uh invest because we had actually placed the advance on the vendors even before the policy came out because we knew the new policy was 15:23 15 minutes, 23 seconds coming out but we didn't want to kind of overstretch that. So now that the policy has come we will go each one what we do is we look at the current IITA look at 15:32 15 minutes, 32 seconds the projected AITA with the new capacity investment in the new capacity and see whether my delta is giving me a decent IR if it is giving me a decent IR we go 15:40 15 minutes, 40 seconds ahead if the current turbines are performing reasonably well and they are generating decent fine we'll continue some 15:48 15 minutes, 48 seconds locations repowering is not working out because there are other large turbines around so the what we call micro sighting becomes a challenge so we have 15:56 15 minutes, 56 seconds to so it's a case by case it's a sideby-side basis we can't take a overall broad decision across all our assets but it now gives us that option 16:05 16 minutes, 5 seconds to either repower or converted to hybrid or both so this uh repowering means you have 16:13 16 minutes, 13 seconds ordered new turbines when when they are likely to so repowering we are hoping to commission that 6 megawatt in about in by about June of this year we have 16:22 16 minutes, 22 seconds ordered three 2.1 megawatt turbines from Swisson So it be actually 6.3 megawatt 3 2.1 megawatt. 16:31 16 minutes, 31 seconds Yes. Yes. The latest offerings are um that doesn't fit in the location. See 16:39 16 minutes, 39 seconds basically repowering you have to fit within the location land that you have and you have to see what are the other turbines that are there around and you 16:47 16 minutes, 47 seconds have to maintain that spacing between turbines. So with that there is even a 5 5.1 megawatt turbine which has been offered to us but that will not suit for 16:54 16 minutes, 54 seconds a repowering location. Repowering we have to use 2 megawatt and below. In fact 2 megawatt itself was a stretch. Uh so it's is a little more complex because 17:03 17 minutes, 3 seconds we are operating within it's like when you are doing a retrofit of an existing uh or refurbishment of an existing house 17:11 17 minutes, 11 seconds what is there in the basic structure you cannot change. So you can only improve something. So but the 2.1 is a very very good turbine. So uh it's giving us whatever PLF we want. 17:21 17 minutes, 21 seconds And last question out of our we have a portfolio of 380 megawatt right sir. Yeah. 17:27 17 minutes, 27 seconds So out of that 380 megawatt uh uh how many megawatt qualify means needs to be replaced which is giving us much lesser 17:36 17 minutes, 36 seconds yield around 45. 17:38 17 minutes, 38 seconds So around 45 megawatt has crossed 20 year life. 17:43 17 minutes, 43 seconds So that we need to seriously look at for repowering out of which 10 megawatt we are repowering now and the balance 35 17:50 17 minutes, 50 seconds megawatt has kind of passed its uh sell by date but we have to so we are now looking at the balance 35 megawatt as 17:58 17 minutes, 58 seconds and when things change I mean year on year more turbines will come into that bracket and we will keep looking at them 18:05 18 minutes, 5 seconds but now it's we don't need to wait necessarily for 20 or 25 years we we can we are looking at it on a continuous basis to see whether uh where repowering 18:14 18 minutes, 14 seconds is possible and whether the IR on the delta investment makes sense. 18:20 18 minutes, 20 seconds So lastly this 35 balance 35 megawatt they will be replaced within next one year or is that realistic or no we have 18:29 18 minutes, 29 seconds I will not I will not be able to because we are still doing the analysis so I will not be able to uh kind of uh confirm whether all of it we will 18:37 18 minutes, 37 seconds replace some of it we may continue to run because the turbines like an old uh car they are still running uh smoothly 18:44 18 minutes, 44 seconds and generating and one site I know we are not able to do because uh the site is such that we are not able to install any larger turbines at all. So we may 18:53 18 minutes, 53 seconds continue to operate these as long as they run and then maybe convert to solar because the access to the site is not 18:59 18 minutes, 59 seconds suitable for the large turbines to come because these are all these all 250 kow 19:07 19 minutes, 7 seconds turbines with the 30 m 40mite I mean they're tiny compared to the two even the 2 megawatt turbine that we have. 19:16 19 minutes, 16 seconds So if I uh have heard you correctly, this new initiative of solar plus wind will add 25 to 30 crores eita right and 19:25 19 minutes, 25 seconds they will be commissioned in May uh June by June 26 because the line was not clear at my end. So is that correct? 19:33 19 minutes, 33 seconds So basically yeah the new capacity of solar plus the new wind plus the repowered wind totally will add about 36 floors of EIA. 19:41 19 minutes, 41 seconds 30 right sir? Yeah. 3 36 36. Okay. 19:47 19 minutes, 47 seconds Thank you, sir. And I I'll rejoin the queue. All the best. 19:53 19 minutes, 53 seconds Thank you participant. If you wish to join the question queue, you may press star and one. 20:01 20 minutes, 1 second Next question is from the line of Vikas Singh, an individual investor. Please proceed. Hello. 20:09 20 minutes, 9 seconds Hello. 20:10 20 minutes, 10 seconds Yes. My first question is how would one should see its occurrence and impact on PAT going forward? 20:18 20 minutes, 18 seconds Of which sir? Sorry. Impact of what on PAT? 20:27 20 minutes, 27 seconds How would one see its preced occurrence and impact on PAT going forward? 20:36 20 minutes, 36 seconds No. See are you talking about the new capacity coming in or are you talking about generally the pet 20:44 20 minutes, 44 seconds new capacity coming in? So new capacity coming in will add as I said 36 crores of IITA uh net of uh 20:54 20 minutes, 54 seconds uh one second I'll just give you the number other question any other questions 21:04 21 minutes, 4 seconds yeah I no this one 21:14 21 minutes, 14 seconds yeah I want this one just give rate I'll give you the exact number that may take some time because this interest 21:38 21 minutes, 38 seconds so it will immediate impact on PBT will be about 10 crores after providing for interest and deposition. 21:46 21 minutes, 46 seconds that will be more or less the same because uh we will have enough deposition cover for uh not paying tax. 21:55 21 minutes, 55 seconds It's okay. Thank you. Thank you. 22:02 22 minutes, 2 seconds Next question is from the line of AIT Agavian company. Please proceed. 22:10 22 minutes, 10 seconds Yeah, thank you for the role of sir. So what is it projected capex for the FI27? 22:17 22 minutes, 17 seconds Capex for no fi 27 at the moment we have not made the full plans for capex uh fi26 capex is more or less uh this below 22:25 22 minutes, 25 seconds will be there for fi27 for these uh 36 megawatt of capacity which is a total of how much about uh 22:34 22 minutes, 34 seconds around 240 cr about 240 crores is what will be kind of carried through from the year as far as fi27 is concerned we are looking at 22:43 22 minutes, 43 seconds certain fundraising options because the internal generation for capex will not be that large. Uh we have uh we had raised equity from the market for the 22:52 22 minutes, 52 seconds solar project of 25 megawatt. The uh wind and the repowering has been financed with internal uh mostly with 22:59 22 minutes, 59 seconds internal resources. Going forward, we are looking at some fundraising possibilities. Once that is firmed up, we will work on the capex for next year. 23:08 23 minutes, 8 seconds And international exposure is expected to expand. No. Uh that is a old asset that we had. 23:15 23 minutes, 15 seconds We have not uh uh so that continues to run. We we have currently no plans to uh 23:22 23 minutes, 22 seconds um I mean get exposed to OCS and can you share what is the current PLF on wind and solar both? 23:31 23 minutes, 31 seconds Solar is I mean this year has I mean it's was commissioned just in the last month or the last quarter so it's too early to talk about. So PLF for solar uh 23:40 23 minutes, 40 seconds for the 9 month period uh the uh PLF was about average of 22%. 23:47 23 minutes, 47 seconds For the uh for the newer assets and about 17% for the older assets. 23:55 23 minutes, 55 seconds Thank you sir. All the best for the future. Thank you. 24:02 24 minutes, 2 seconds Participants to join the question queue you may press star and want. 24:07 24 minutes, 7 seconds Next question is from the line of Shwata BK from Equilion. Please proceed. Hi, am I audible? 24:16 24 minutes, 16 seconds Yes. 24:17 24 minutes, 17 seconds Yes. Thank you so much for the opportunity. So can you just give some idea on the project pipeline like when 24:24 24 minutes, 24 seconds can we start the seven uh megawatt solar power project this year? 24:31 24 minutes, 31 seconds So 7 megawatt solar is already commissioned. Uh the balance balance uh 18 megawatt of the solar is targeted to 24:39 24 minutes, 39 seconds commission before May of this year and uh the 10 megawatt of wind green field also we are targeting to commission by 24:46 24 minutes, 46 seconds April May of this year. the 6 megawatt repowering should will go up to June. 24:52 24 minutes, 52 seconds Okay, that's great. That's great. Thank you so much. And sir, uh if you can give idea on the turbine upgrades, uh they'll 25:01 25 minutes, 1 second be considered uh like are we considering the older winner sets to be repowered? 25:08 25 minutes, 8 seconds Yeah. So as I said earlier there's about 40 megawatt of old wind capacity which needs to be which can be repowered or more of it can be repowered but this 25:16 25 minutes, 16 seconds which is kind of ripe for repowering. We are in the process of analyzing to figure out whether repowering makes economic sense and wherever it makes 25:23 25 minutes, 23 seconds economic sense we will go ahead and repower but we have not yet come to that stage yet because we are waiting for the final shape of the repowering policy 25:31 25 minutes, 31 seconds which has come out last month. So based on that we will go ahead with the analysis. 25:35 25 minutes, 35 seconds Okay. So we'll be able to take advantage of the policy, right? Yes. Yes. Yes. 25:40 25 minutes, 40 seconds Okay. That's great. And uh that will be reflected in which water sir? 25:46 25 minutes, 46 seconds No the repowering uh see the whatever we are already doing will start reflecting in starting from uh Q2 of next year and 25:55 25 minutes, 55 seconds uh the further capacity if we do it will take it will take 8 9 months for the new project to come up. Anyhow, so if we do any further repowering, we are looking 26:03 26 minutes, 3 seconds at probably only in FY uh 27 for it to start seeing some action. 26:11 26 minutes, 11 seconds Okay, that's great. And so just can you give a guideline on the next 3 to five year vision that you are having for the company? 26:21 26 minutes, 21 seconds See, we are looking I mean I think it's a little premature. We definitely want to become a gigawatt size company. We have certain uh projects and thought 26:29 26 minutes, 29 seconds processes which are in progress but uh the details we can't share with you until we are ourselves clear and we are ready to take it to the shareholders. 26:38 26 minutes, 38 seconds That's great. So I like your clarity and your honesty. Thank you so much and good luck. Thank you. 26:47 26 minutes, 47 seconds Thank you. 26:50 26 minutes, 50 seconds Next question is from the line of Vipul Kumar Sha from Sumangal Investments. Please proceed. 26:56 26 minutes, 56 seconds So you said sir uh new assets has PL of of 20 22% and old as 16 70%. So uh what 27:06 27 minutes, 6 seconds is the old capacity and what is the new capacity? The new capacity is about 40 megawatt. Rest all is old capacity. 27:15 27 minutes, 15 seconds Rest all is older capacity. Okay. Thank you. 27:22 27 minutes, 22 seconds Thank you. 27:26 27 minutes, 26 seconds Next question is from the line of Shivam Ashok Tama an individual investor. Please proceed. 27:34 27 minutes, 34 seconds Well, good afternoon. This is uh I'm from Bombay. Basically, I would like to know the pledge which are done 100% 27:43 27 minutes, 43 seconds pledged by the promoter because of which we are not getting a good valuation. Is there any chance of unpledging by the promoters? 27:52 27 minutes, 52 seconds uh we I think the target is to get them unpledged sometime uh before first before middle of next month. 28:02 28 minutes, 2 seconds Next month. Okay s done. Thanks. 28:08 28 minutes, 8 seconds Thank you participants to join the question q you may press star and one. 28:16 28 minutes, 16 seconds Next question is from the line of yes Nisar an individual investor. Please go ahead. 28:23 28 minutes, 23 seconds Hello. Am I audible? Yes. 28:26 28 minutes, 26 seconds Yeah. Sir, so my question is can you please help us understand the reasons for the subdued performance in the third quarter of FI26? 28:35 28 minutes, 35 seconds Yeah. So basically we are uh as of now almost 100% a wind power company. So the 28:42 28 minutes, 42 seconds wind is in India is seasonal. So you have maximum wind in Q1 and mostly in Q2. Q3 and Q4 are typically low wind. So 28:51 28 minutes, 51 seconds if you compare it with the same quarter last year, you will find the numbers are more or less the same. So the generation is more or less the same. As the 25 28:59 28 minutes, 59 seconds megawatt of solar comes in, you will have a little more generation happening in Q3 Q4 from solar. But until that starts kicking in, you will always find 29:07 29 minutes, 7 seconds this Q1 Q2 will be heavy and Q3 Q4 will be relatively kind of muted. That's part of life. 29:16 29 minutes, 16 seconds Okay. So you mean that major generation happens in the first half? Yes. Exactly. Yeah. Yeah. Okay. Okay. Okay. Thank you. 29:25 29 minutes, 25 seconds We are dependent on Vay Bhagwan. Well, sorry. We are dependent on Vay Bhagwan. 29:33 29 minutes, 33 seconds Okay. Thank you. 29:40 29 minutes, 40 seconds Participant if you wish to ask a question you may press star and one. 29:45 29 minutes, 45 seconds Next question is from the line of Disha an individual investor. Please go ahead. 29:50 29 minutes, 50 seconds Uh hi good afternoon. Uh so uh I would like to understand that what is the current net debt of the company and uh equity ratio of it. 30:02 30 minutes, 2 seconds So net debt is about 57 crores. Okay. 30:07 30 minutes, 7 seconds And debt equity is more or less uh two is to one that is two times equity to a debt. 30:14 30 minutes, 14 seconds Okay. So what are your plans to reduce loan and finance cost further? 30:19 30 minutes, 19 seconds No loans will continue actually next quarter loans will increase somewhat because we will be drawing down loans for the new capacity. So we will be 30:27 30 minutes, 27 seconds drawing down about 120 crores of uh uh debt for the new wind capacity. So it 30:36 30 minutes, 36 seconds will it will go up a little. Uh but uh I mean that's part been as part of the renewable energy business. assets are 30:44 30 minutes, 44 seconds lifeblood. We have to borrow money to uh to put up new assets. Uh in terms of interest cost, we are down to we are at about 9.15. We have recently got a 30:53 30 minutes, 53 seconds rating upgrade. So we are negotiating with our lenders to see whether we can save some money on the interest and also looking at certain refinancing and other 31:01 31 minutes, 1 second possibilities. So that will uh that that work will continue. 31:06 31 minutes, 6 seconds Okay. And uh I want to understand your expansion plan uh for the Europe. No, we have no expansion plan for Europe. 31:16 31 minutes, 16 seconds Sorry, we have no expansion plan for Europe. We have one asset there. We will continue to operate it and that's it. We have no plan to really uh go further in Europe. 31:24 31 minutes, 24 seconds We are concentrating on India. Oh, okay. That's nice. Yes. Thank you. 31:32 31 minutes, 32 seconds Thank you. 31:35 31 minutes, 35 seconds Participants to ask a question you may press star followed by one on your touchtone telephone. 31:43 31 minutes, 43 seconds Next question is from the line of Punit Aurora, an individual investor. Please go ahead. Hello. 31:51 31 minutes, 51 seconds Yes. Good morning sir. Morning. 31:55 31 minutes, 55 seconds This year uh was one of the best uh for the company in terms of the cash flows. Right. Yes. 32:02 32 minutes, 2 seconds And do you think uh next year should be better same or uh uh like how do you think the next year is going to be? 32:10 32 minutes, 10 seconds difficult to say. Whatever we hear from the meteorologists indicate that next year the monsoon will be more or less okay and if the monsoon is okay we will also be okay. 32:23 32 minutes, 23 seconds Okay. So because we are dependent on the weather from a whatever we can do operationally in terms of uh the main maintenance in 32:31 32 minutes, 31 seconds terms of uh in the reduction in interest cost all that stuff we have done. Uh we are but uh we have no control over how the wind will behave in the next season. 32:41 32 minutes, 41 seconds This year was a slightly above average wind season. Next year we will see how it goes. Uh current indications are okay. We are not seeing anything 32:48 32 minutes, 48 seconds negative towards the monsoon or the wind as of now. But uh we'll have to wait. 32:55 32 minutes, 55 seconds Next question was sir. This uh we've just got one this uh improvement in the rating. So by when do you think we 33:02 33 minutes, 2 seconds should give you uh the company will get uh uh reduction in the interest cost as improvement in 33:11 33 minutes, 11 seconds talking to the banker. We'll see. We'll have to see. They have to give us Okay. All right sir. Thank you. Thank you. 33:20 33 minutes, 20 seconds Thank you. 33:23 33 minutes, 23 seconds Next question is from the line of Amit Aicha from HG Hawawaiian company. Please go ahead. 33:29 33 minutes, 29 seconds So sir would it be possible for you to share sir like what will be the total capex required for 1 GW because right now we are 380. So till now what is the capex that we have done already and to 33:37 33 minutes, 37 seconds reach 1 GW how much more capex will be needed? 33:40 33 minutes, 40 seconds As I told you if we cannot reach 1 gaw in a reasonable time frame if you're doing only green field. So there will 33:48 33 minutes, 48 seconds have to be some uh step change that we are we are working on it. But uh so and it depends on what uh uh should we say 33:56 33 minutes, 56 seconds today your solar per megawatt is costing you uh green field about uh about five five and a half crores per megawatt. 34:06 34 minutes, 6 seconds Wind is today actually much more expensive. It it is going up to almost uh 8 7 and a half to 8 crores a megawatt of 34:14 34 minutes, 14 seconds course with much higher PL. So that's the kind of order of magnitude if we are going for a green field acquisition or green field asset. If you go brownfield 34:22 34 minutes, 22 seconds it's a different ballgame and that's the conversations that are happening. 34:27 34 minutes, 27 seconds Thank you sir. Thank you. Thank you so much. All the best. Thank you. 34:33 34 minutes, 33 seconds Thank you participants. If you wish to join the question queue you may press star and one. 34:42 34 minutes, 42 seconds Next question is from the line of Shivam Ashok Tuma an individual investor. Please proceed. 34:50 34 minutes, 50 seconds Good afternoon sir. Hello. Good afternoon sir. Good afternoon. 34:57 34 minutes, 57 seconds I just now said uh there is no plan expansion plan in the euro. Are you making any profit from that uh Europe? 35:09 35 minutes, 9 seconds Yeah the European asset is running itself. is making some profit for us. So last 9 months I think we had about uh 35:17 35 minutes, 17 seconds 1 million 1 cr 1 million units generated 1 million units generated and about what is the bit 35:33 35 minutes, 33 seconds 800 we had about 800,000 of iita in the last year which is about uh 800,000 35:42 35 minutes, 42 seconds yeah Eight like euro into 100 say 80 cr no no 8 crores 8 crores 8 crores 35:53 35 minutes, 53 seconds for example see we tried to sell that asset some time back but unfortunately we don't own 36:02 36 minutes, 2 seconds 100% of that asset we have a local partner who owns 49% we own 51%. So together we have to sell. So we have had 36:10 36 minutes, 10 seconds some conversations. Uh but it's not progressing. Uh the asset is not large enough that any large banker is interested to sell it. So we did make a 36:19 36 minutes, 19 seconds few attempts but then we said okay let it just run. It's uh paid off its debts. 36:23 36 minutes, 23 seconds It's slowly paying us back whatever uh we had invested in it. So 20 years in fact you our company's invested hell of 36:31 36 minutes, 31 seconds a lot of money in in the last 20 years in the same assets. Right. No, no, no, no, no, no, no. We not invested big money in the asset. We actually invested 36:39 36 minutes, 39 seconds much more in India. See, Europe when we got in, we had a uh it was in it is in Croatia. So, we put in a 10 megawatt 36:46 36 minutes, 46 seconds wind farm where and we had a promise of uh license for another 60 megawatt. 36:53 36 minutes, 53 seconds Unfortunately, that 60 megawatt license did not come. So from that point of view it didn't make sense for us to kind of 37:00 37 minutes uh I mean at 60 70 megawatt it makes sense to be in a country at 10 megawatt it really doesn't make sense but since the local partner is taking care of 37:09 37 minutes, 9 seconds things and he's fairly straightforward from that point of view there's no missing so we said okay 37:16 37 minutes, 16 seconds thank you thank not worth the effort trying to sell it thank you very much 37:24 37 minutes, 24 seconds thank you ladies and gentlemen to ask a question you may press star and one 37:37 37 minutes, 37 seconds as there are no further questions from the participants I would now like to hand the conference over to Mr. T Shar Raman, managing director and CEO for the closing comments. Over to you, sir. 37:47 37 minutes, 47 seconds Thank you all for joining us for this uh call and uh thank you for your participation. Thank you for your u 37:55 37 minutes, 55 seconds support to OGPL and uh we look forward to sharing uh speaking to you during the next uh annual conference call. Thank you all. Have a great day. 38:06 38 minutes, 6 seconds Thank you very much sir. Ladies and gentlemen, on behalf of Orient Green Power Company Limited, that concludes today's session. Thank you all for 38:14 38 minutes, 14 seconds joining us and you may now disconnect your lines. Thank you. Thank you.