Sterling and Wilson Renewable Energy Ltd — Q4 FY26

Sterling and Wilson Renewable Energy Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cqh7nUDVPcA Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Sterling and Wilson Renewable Energy Limited Q4 F526 earnings 0:08 8 seconds conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. 0:17 17 seconds These statements are not the guarantees of future performance and involve risks and uncertaintities that are difficult to predict. As a reminder, all 0:25 25 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 0:33 33 seconds conference call, please signal an operator by pressing start then zero on your touchstone. Please note that this conference is being recorded. I now the 0:41 41 seconds conference over to Mr. Sep Matthew, head I for his opening remarks. Thank you and over to you Mr. Matthew. 0:49 49 seconds Yeah, good morning and welcome everyone to the Q4 FI26 earnings call. Uh we have with us today Mr. CK Takur our global 0:57 57 seconds CEO, Mr. Ajit Patab Singh our CFO and SGA who are our IR partners. We will start today's call with the key 1:05 1 minute, 5 seconds operational highlights for the quarter and industry outlook by Mr. Takur followed by the financial highlights by Ajip post which we will open up for Q&A. 1:14 1 minute, 14 seconds Thank you and over to you. 1:17 1 minute, 17 seconds Thanks and a very good morning to all of you. I'll begin today's call with an update on business operations and outlook. 1:26 1 minute, 26 seconds The FY26 has been a very good year for us on multiple counts where we achieved certain important milestones. 1:35 1 minute, 35 seconds First, we have been able to bag new orders of more than 10,000 cr in this fiscal marking this fiscal as one of the most successful ever in the terms of order bookings for the company. 1:46 1 minute, 46 seconds The strong order inflow has reflected in our unexecuted order value exceeding 11,800 crores which provides good visibility for the future earnings. 1:57 1 minute, 57 seconds Second, we have been able to deliver and commission almost 4.5 gawatt AC equivalent to nearly 5.9 2:06 2 minutes, 6 seconds gawatt DC of solar PV projects in India and international market. 2:12 2 minutes, 12 seconds To put to put this that numbers in perspective the whole solar utility scale installations in India was 2:19 2 minutes, 19 seconds approximately 28.3 gawatt AC in financial year 26 as per MRE data when you exclude rough rooftop solar. 2:30 2 minutes, 30 seconds So about 15% of solar projects commissioned in the country during last fiscal whereby sterling and vision which is a very proud proud moment for all of us. 2:43 2 minutes, 43 seconds Third we continue to invest in building scale looking at the growth prospects available to us. 2:50 2 minutes, 50 seconds Our employees headcount have now touched about 3,500 compared to 2005 year a year 2:57 2 minutes, 57 seconds ago. We are gearing up to do multiple gigawatt scale projects for key clients 3:04 3 minutes, 4 seconds as that is the way we see the solar market gearing up in India. 3:09 3 minutes, 9 seconds Fourth, the operation and maintenance segments which has still now been relatively a small contributor to top lines and profits is beginning to reach 3:17 3 minutes, 17 seconds an inflection point. The total portfolio size has increased to 13.5 gawatt from 3:24 3 minutes, 24 seconds 8.77 gawatt in last fiscal making us probably one of the largest third party O andM players globally. 3:33 3 minutes, 33 seconds With a steady stream of our own EPC projects and third party acquisitions, we believe the statements can be in a 3:41 3 minutes, 41 seconds positions to accelerate at a much rapid pace than in previous years. 3:46 3 minutes, 46 seconds And finally, our financial performance, which Ajit will take you through in detail, has continued to improve despite 3:54 3 minutes, 54 seconds some of the one-off litigations related costs we incurred in fiscal 2026. 4:01 4 minutes, 1 second Now, let me give some additional color on our operational performance. 4:08 4 minutes, 8 seconds New EPC orders inflow grew more than 43% yearonear to 10,62 cr while we had conservative 4:17 4 minutes, 17 seconds projected 15% growth in order inflows at the start of this fiscal year. The unexpected geopolitical 4:27 4 minutes, 27 seconds tensions coupled with high commodity price fluctuations meant that EPC ordering activities by developers in the fourth quarters was largely muted. 4:39 4 minutes, 39 seconds During the fourth quarter, we backed the prestigious new orders from coal India when we were declared L1 for 1.2 gawatt DC turnkey projects in Rajasthan. 4:51 4 minutes, 51 seconds We also own a 50 megawatt project from a private IP for a project in Maharashtra. Overall in 4:59 4 minutes, 59 seconds fiscal 2026, we backed 12 new orders. Of these, 11 were EPC orders totaling 5:06 5 minutes, 6 seconds nearly 5.2 and 2 GW DC and one was a pure battery storage project of 790 megawatt hour. 5:15 5 minutes, 15 seconds In the Indian market, we own 10 projects totaling 4.8 gawatt DC with an order value of rupees 7,659 crores. 5:26 5 minutes, 26 seconds The growth in domestic order inflows in value terms was approximately 30% compared to last fiscal showcasing the strong underlying momentum. 5:37 5 minutes, 37 seconds In the international market, we own two projects from South Africa worth US dollar 270 million as we have reported previously. 5:48 5 minutes, 48 seconds Another unique aspect of our orders this fiscal has been a larger skew towards turnkey projects which accounted for nearly 70% of our total orders. 6:00 6 minutes As a result of this strong order inflow, our unexecuted order value is now at a 6:06 6 minutes, 6 seconds record high of about 11,813 crores compared to 9,96 crores last fiscal. 6:16 6 minutes, 16 seconds Domestic orders comprise about 78% of current EOB or about 9,250 crores. 6:26 6 minutes, 26 seconds We had reported revenue of 5,836 cr in domestic EPC in financial year 26. 6:33 6 minutes, 33 seconds So the growth visibility is good. 6:36 6 minutes, 36 seconds Our UAV has projects where we have been declared L1 by PSU and we will need final LOA to start execution in those like recent colindia orders. 6:49 6 minutes, 49 seconds Our international EOV is about 2562 crores while our reported financial year 26 revenue was 1444 crores. 7:00 7 minutes Our international EPC business continues to grow rapidly due to the small base it started from postcoid. 7:08 7 minutes, 8 seconds We would like to reiterate that the postcoid international projects have been profitable with gross margins higher than domestic EPC margins in many cases. 7:19 7 minutes, 19 seconds Turnkey orders comprise about twothirds of our current EOB and B US orders make up the rest. 7:29 7 minutes, 29 seconds The skew towards turnkey is primarily due to recent coal India and two South Africa projects win this fiscal. We 7:37 7 minutes, 37 seconds remain confident of achieving our targeted margins in these projects. 7:42 7 minutes, 42 seconds Now coming to the industry outlook, our bit pipeline is pretty robust and heavily skewed towards India as we are 7:50 7 minutes, 50 seconds anticipating another good year to start with a solar EPC players. 7:57 7 minutes, 57 seconds Our current bid pipeline targets about 31 gawatt overall 8:03 8 minutes, 3 seconds of which India is more than 27 gawatt over and above. 8:10 8 minutes, 10 seconds We also expect strong momentum from the battery storage market in this fiscal. 8:16 8 minutes, 16 seconds In the international market, our key focus region continues to remain Middle East and Africa and select parts of Europe. 8:26 8 minutes, 26 seconds We remain extremely prudent in terms of bidding in the international market and are very mindful of the risk. The 8:33 8 minutes, 33 seconds postcoid project wins and corresponding strong execution has been showing us that our strategy has been working well 8:42 8 minutes, 42 seconds in our core market. India has just crossed a landmark of 150 gaw of cumulative installed solar capacity. 8:51 8 minutes, 51 seconds What makes this milestones truly extraordinary is the velocity at which it was accomplished. 8:58 8 minutes, 58 seconds The last 50 gawatt were added in just about 14 months compared compared to the 11 years it took India to reach its first 50 gawatt level. 9:11 9 minutes, 11 seconds I have no doubt that this growth will continue to benefit established solar EPC players like us. 9:18 9 minutes, 18 seconds At current market dynamics, we are closely monitoring solar module prices. 9:25 9 minutes, 25 seconds EV model prices globally have been rising since January driven in part by production cuts in China and the removal 9:33 9 minutes, 33 seconds of Chinese export tax credits effective April 1st and due to the highly volatile 9:41 9 minutes, 41 seconds commodity prices especially key inputs like silver etc. 9:46 9 minutes, 46 seconds However, for our existing order book, we have adequate back-to-back pricing protection in place with suppliers as 9:54 9 minutes, 54 seconds well as well as appropriate contingencies buffers. 9:58 9 minutes, 58 seconds On the reliance front, we continue to remain in active dialogue. We have been putting in place strategies that will 10:05 10 minutes, 5 seconds help us to quickly scale scale up as and when the need arises on the large multi-year multi-gawatt solar rollout. 10:15 10 minutes, 15 seconds With this I'll ask Ajit to take you through the consolidated financial highlights. Thank you very much. Over to you Ajit. 10:23 10 minutes, 23 seconds Thank you Shik sir. Good morning everyone. 10:27 10 minutes, 27 seconds We are pleased to report two significant financial milestones we achieved during the quarter. 10:33 10 minutes, 33 seconds First we achieved our highest annual turnover since listing of rups 7,548 10:41 10 minutes, 41 seconds cr which was 20% higher than FI25 and second company achieved its highest 10:49 10 minutes, 49 seconds reported quarterly PAT number since listing of INR 142 crore in quarter 4 FY26. 11:00 11 minutes Our topline growth has been driven primarily on the back of a growing domestic EPC business. 11:07 11 minutes, 7 seconds For quarter 4 FY26, our revenue came in at rupees 1 1946 cr. 11:17 11 minutes, 17 seconds Commodity price volatility impacted some of the supplies and material availability and company had to defer some of the 11:26 11 minutes, 26 seconds supplies and revised execution plans accordingly in quarter 4 FY26 11:33 11 minutes, 33 seconds which led to the sequential and yearon-year drop in Q4 revenue. 11:39 11 minutes, 39 seconds On the gross margin front, our FY26 gross margin improved to 10.5%. 11:47 11 minutes, 47 seconds versus 10.1% in FY25 primarily added by international EPC 11:53 11 minutes, 53 seconds segment where margins reflected to 13.2% versus 8% in FY25. 12:01 12 minutes, 1 second Q4 FI26 gross margins were strong in international EPC due to three projects achieving commissioning ahead of budget cost. 12:11 12 minutes, 11 seconds Reiterating CKT's earlier point in his opening remarks of current international projects attractiveness in our portfolio. 12:19 12 minutes, 19 seconds We reiterate that we anticipate EPC gross margins to range between 8 to 10% depending on the whether they are turnkey or B orders. 12:30 12 minutes, 30 seconds Quarterly fluctuations in margins are going to be dependent on type and quantum of projects recognized during a particular quarter. 12:39 12 minutes, 39 seconds On the O andM side, we expect gross margin to stabilize at around 20% labor. 12:46 12 minutes, 46 seconds Our operational AITA which is operating revenues less recurring overheads amounted to rupees 444 cr this fiscal and grew 53% yearonear. 12:57 12 minutes, 57 seconds The operational AITA margin was around 5.9%. 13:01 13 minutes, 1 second And we and we believe these are beginning to trend towards steady state levels. 13:08 13 minutes, 8 seconds Our annual recurring overhead rates of 349 cr has remained steady this year and is at similar levels compared to last 13:15 13 minutes, 15 seconds year even with higher revenue growth this fiscal. It is reflective of the operational leverage in the business 13:26 13 minutes, 26 seconds on a quarterly basis. Stronger gross margins from the international EPC segment and lower recurring overhead rates drove the operational AITA higher. 13:36 13 minutes, 36 seconds Our quarter 4 FI26 reported AITA was also positively impacted by Forex gain of approximately 35 cr. 13:46 13 minutes, 46 seconds Our quarter 4 PA was a record 142 cr since listing. 13:52 13 minutes, 52 seconds Reported FY26 PA was negatively impacted by exceptional items of 611 crime 14:00 14 minutes related to litigation matters reported during quarter 2 FY quarter 2 and quarter 3 leading to an annual loss of INR 296 cr. 14:11 14 minutes, 11 seconds Now coming to the balance sheet, our debt levels have declined by 149 cr compared to last quarter reflecting 14:19 14 minutes, 19 seconds stronger cash flow generation and schedule repayments done during the quarter. 14:25 14 minutes, 25 seconds Our networking capital was at 329 cr compared to -47 cr in previous quarter 14:32 14 minutes, 32 seconds due to a pickup in vendor payments in Q4. 14:37 14 minutes, 37 seconds We continue to make a strong progress on fresh credit lines on non-fund and fund based limits. We have cumulative been 14:45 14 minutes, 45 seconds able to raise fresh credit lines to the tune of nearly 200 2,800 cr. 14:55 14 minutes, 55 seconds With this we can now open the floor to questions and answers. 15:00 15 minutes Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If 15:08 15 minutes, 8 seconds you wish to remove yourself from the question key, you may press star and two. Participants are requested to use handsets while asking a question. 15:25 15 minutes, 25 seconds The first question comes from the line of Sorup Shivasa with Arista Consulting. Please go ahead. 15:38 15 minutes, 38 seconds Please go ahead Mr. Sasawa. 15:44 15 minutes, 44 seconds Mr. Siasua, please unmute yourself and go ahead with your question. Good morning. Since there's no just give me a moment. 15:52 15 minutes, 52 seconds Mr. Siasua, please go ahead with your question. Yes. Am I audible now, sir? 15:57 15 minutes, 57 seconds Yes. Uh sir what sort of traction can we expect in the operation and maintenance going forward though it has been a very 16:06 16 minutes, 6 seconds wonderful uh appreciation in the from the last year. 16:11 16 minutes, 11 seconds One thing one question and second sir by what time can we expect this new energy reliance new energy to be on board sir. 16:24 16 minutes, 24 seconds Hello ladies and gentlemen the management line has been disconnected. 16:28 16 minutes, 28 seconds Please be on hold while we quickly get them reconnected. 16:45 16 minutes, 45 seconds Heat. Heat. N. 17:20 17 minutes, 20 seconds in the world. 17:45 17 minutes, 45 seconds Ladies and gentlemen, the management line has been reconnected. Please go ahead. Hello, sir. Good morning, sir. Hi. Morning. 17:52 17 minutes, 52 seconds Uh first of all congratulation on a very good number sir and uh my first question is sir there has been a decent traction in the operation and maintenance sir 18:01 18 minutes, 1 second what sort of uh uh view will you give going forward especially the third party operation and maintenance project and 18:09 18 minutes, 9 seconds sir uh in the last call you said that in the fourth quarter we may see something from the reliance new energy is there 18:18 18 minutes, 18 seconds any clarity any vision and uh what sort of margins Can we expect from those projects if any data available and sir 18:27 18 minutes, 27 seconds uh any update on Nigeria project is still the answer? 18:33 18 minutes, 33 seconds Yeah, thank you sort of. So first questions on your onm uh business outlook right so third partym business 18:42 18 minutes, 42 seconds uh so you have seen that there has been good tractions on the onm orders in the last few quarters and uh all those our 18:51 18 minutes, 51 seconds own EPC OMS would be added part of them have been added in the last quarters and we continue to add 18:59 18 minutes, 59 seconds uh in the last quarters we have also uh I mean backed orders from the large IP 19:06 19 minutes, 6 seconds company Serica for about 900 megawatt when motor orders and uh the last years 19:13 19 minutes, 13 seconds all those projects which have been trial operation that has been completed for them the opportunity will be coming up so you're expecting apart from our own 19:21 19 minutes, 21 seconds EPC O andM orders the third party orders will continue to flow in are the third party orders annual or 19:30 19 minutes, 30 seconds multi-year contract sir they are all multi-year at least for 2 to 3 years. Some contracts are 2 years, 19:37 19 minutes, 37 seconds most of them are for 3 years and few of them are also for a very very long time. 19:44 19 minutes, 44 seconds It's all what the margins what sort of margins do we plan to settle for these the third party OE and they are all in the range of 20 to 25%. 19:54 19 minutes, 54 seconds So it all depends and what kind of orders or what kind of you know the scopes are but it is not the fixed basically for every single orders we go 20:02 20 minutes, 2 seconds for more than 25%. But of course I mean this all depends on the scope. So in Indian markets we are operating for more than 20% orders as of now. 20:11 20 minutes, 11 seconds This is gross margin gross margins. Yeah. Right. 20:17 20 minutes, 17 seconds On the second question of uh reliance so reliance as you have been guiding the markets also you have been deeply engaged with 20:25 20 minutes, 25 seconds them. So there has been discussions on the technical parameters the kind of you know configuration of the projects that they're going to have and all. So for 20:34 20 minutes, 34 seconds all on all fronts we are deeply engaged with them and uh and traction would be seen in this financial year I'm sure any clarity on margins. 20:47 20 minutes, 47 seconds No. So all terms and conditions everything are yet to be decided discussed. So at this moment we can't tell you any number. 20:56 20 minutes, 56 seconds And the Nigerian one sir also Nigeria. Yeah. So basically it's on the slow pace. Um uh again I mean the 21:05 21 minutes, 5 seconds election coming in and all. So I mean you can say that I mean this will take much longer times. It may may not be happening in maybe this financial years. 21:14 21 minutes, 14 seconds Yeah. Yeah. Thank you sir. Thank you. Thanks Auro. 21:21 21 minutes, 21 seconds Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question 21:28 21 minutes, 28 seconds comes from the line of Samir Talal with Natal and Sun stock brokers. Please go ahead. 21:35 21 minutes, 35 seconds Yeah. Hi. Uh congratulations on the good profitability. U you know I have two questions. Uh the first is you know we 21:43 21 minutes, 43 seconds saw some amount of slowdown or no pickup per se if you can say in the order execution given our order backlog right 21:52 21 minutes, 52 seconds Q4 uh deg growth in the top line. So if you can throw some understanding on why this is and the second question would 22:00 22 minutes you be willing to give us some sort of guidance on what kind of revenue we can expect in the next financial year um 22:10 22 minutes, 10 seconds given the fact that order book is more or less I think a thousand crores more than what it was last year when we finished the year previous year. So does 22:17 22 minutes, 17 seconds that mean that growth is going to taper down or do you think that order inflow the first half will be so strong that you'll be able to capture some of it and 22:25 22 minutes, 25 seconds be able to grow stronger by the second half? 22:30 22 minutes, 30 seconds Yeah. So uh Samir so uh on the quarter four order pickup so the market has been 22:37 22 minutes, 37 seconds generally been showing le traction because of you know the some uncertainties in the uh commodity prices 22:45 22 minutes, 45 seconds and all. So all those orders that were slated to be concluded in quarter 4, most of them have been shifted to 22:52 22 minutes, 52 seconds quarter 1 and uh not that our share has gone down in in in general the industries was seeing the traction of 23:01 23 minutes, 1 second lower slowdown in on the order book side. Uh your second question was on the 23:09 23 minutes, 9 seconds revenue guidance right. So last year's our track record has been very good and with the UV pretty good EOV of over 23:17 23 minutes, 17 seconds 11,000 crores and orders will keep on flowing. uh so the there's no question 23:25 23 minutes, 25 seconds of tapering downs we'll be definitely uh be growing at a reasonably let's say 15% 23:32 23 minutes, 32 seconds uh uh I mean the growth yeah this 15% growth that you're targeting 23:40 23 minutes, 40 seconds does this include maybe future orders from Reliance or that would be an add-on to the 15% that you're giving us kind of 23:47 23 minutes, 47 seconds a view on based on your current order book. No, so this is based on to the current order books and the uh quarter 23:55 23 minutes, 55 seconds the orders that we'll be getting in quarter three and quarter four because some of the some of the projects would definitely be coming under execution. So 24:03 24 minutes, 3 seconds the orders enhance and these few of the orders will be coming to CP4 but reliance is excluded out of this. We don't consider reliance in this port 24:12 24 minutes, 12 seconds because Reliance orders unless it comes in we can't commit anything on this right. 24:18 24 minutes, 18 seconds Fair enough. And last question if you if you allow me you know uh you talked about doing the battery energy storage part of it. So what kind of tie-ups do 24:26 24 minutes, 26 seconds you have with companies that are making all these batteries? So when you set up your storage and if you do like a fully 24:33 24 minutes, 33 seconds integrated project with setting up the solar plant with battery energy storage um I mean just to understand how would 24:41 24 minutes, 41 seconds the the revenue look for a similar project where you're purely doing a solar park versus with the battery energy storage and what would be the 24:48 24 minutes, 48 seconds margin profile of that kind of orders and business. 24:51 24 minutes, 51 seconds No. So this financial years will definitely witness the combination of solar plus battery. Uh as far as our 25:00 25 minutes strategic tie up with few of them uh is concerned. So I don't have as of now the 25:07 25 minutes, 7 seconds fully tie up but we keep on engaging with the manufacturers based on the I mean the opportunities coming on project 25:15 25 minutes, 15 seconds on project basis. So before I when bid is submitted we definitely get into the dialogue with the manufacturers to lock 25:23 25 minutes, 23 seconds our prices with them so that any fluctuations during execution is not I mean affecting us on our supply patterns 25:31 25 minutes, 31 seconds or on the b bottom line. Uh so so I mean this is why I'm telling you this is the battery market in India itself is not 25:38 25 minutes, 38 seconds very mature. So I mean there's no point at this stage and getting stuck up with one and then getting into trouble. So that is on the battery path. And your 25:47 25 minutes, 47 seconds second question was how would the prof how would the revenue profile change and how would the margin profile change when you do these 25:54 25 minutes, 54 seconds combined margin profile on the battery also will remain same I mean we have been let's say working depending upon the supply of 26:01 26 minutes, 1 second battery in our scope or only b for the battery so it will be around 8 to 10%. 26:08 26 minutes, 8 seconds So if it is only I mean let's say the B margin could be little more if it is supply then the margin would be less depending upon the type of the orders 26:15 26 minutes, 15 seconds that is coming on. So uh and the I'll say let's say around 20 to 25% in 26:24 26 minutes, 24 seconds the quarter 2 quarter 3 not in quarter 1 but Q2 Q3 is I mean 20% order 20 25% 26:31 26 minutes, 31 seconds orders add-on will keep on happening I mean so that kind of tax is being seen so for sure the battery market seems to 26:39 26 minutes, 39 seconds be very very very good for years this years and onwards I mean over 50 gawatt hour battery opportunities are being 26:48 26 minutes, 48 seconds seen. So out of that definitely we'll be getting some part of our in our shares. 26:53 26 minutes, 53 seconds Yeah, fair enough. Thank you very much for the info and I'll get back into you. Thank you for the time. 27:03 27 minutes, 3 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Bhavik Sha with Invex Capital. Please go ahead. 27:15 27 minutes, 15 seconds Yeah. Uh hello sir am I audible? Yeah. Yeah. Hi good morning. 27:20 27 minutes, 20 seconds So my first question is how much of inflows can we expect from Reliance in the current financial year and say in 27:27 27 minutes, 27 seconds terms of execution when can we see the execution coming when once we get the orders? 27:34 27 minutes, 34 seconds I just before this questions while I was addressing to some I addressed this part. So I told you that we deeply engaged with them. I mean discussions 27:43 27 minutes, 43 seconds are happening on the technologies and all those kind of tires and things by them. 27:47 27 minutes, 47 seconds So actually from understand where is it getting hindered like what is making it delay? 27:53 27 minutes, 53 seconds Now I can't be discussing more on this kind of things but of course I mean kara being a large project I mean the cuts being a very very large project so they 28:01 28 minutes, 1 second are evaluating the pros and cons on the various technologies and all right finally once they I mean come to a point where they feel that the project is now 28:10 28 minutes, 10 seconds I mean I mean can be fully launched on and and thereafter only our role starts. 28:15 28 minutes, 15 seconds So we are fully engaging them to support all those things come to understanding of the project technical parts and other things and uh as and when it comes then 28:23 28 minutes, 23 seconds we'll come back to you on the size of the orders and the timing of the orders and all okay uh so until now we don't see any 28:32 28 minutes, 32 seconds clarity in near term right no clarity is that we are deeply engaged with gems and the project is on with 28:38 28 minutes, 38 seconds them and I mean uh the the larger shares maybe will be expecting out of the project that that will be coming for EPCS stage. 28:48 28 minutes, 48 seconds Okay. And sir in terms of our margins this quarter was there any oneoff in terms of uh completion or anything 28:56 28 minutes, 56 seconds because we have not seen such margins uh when our revenue has dropped but our gross margins have improved. So what are those uh reasons which led to that improvement? 29:07 29 minutes, 7 seconds So there were three projects international projects which were towards frag end of completion and uh so there were certain savings over the 29:16 29 minutes, 16 seconds budgeted cost that has improved our overall margin particularly which that came from international projects. 29:23 29 minutes, 23 seconds Okay because in our presentation you have guided like we'll continue to do at 8 10% gross. So that's the reason I'm asking. So is it a one-off we should consider? 29:33 29 minutes, 33 seconds uh it's like savings over the budgeted cost in international projects. 29:38 29 minutes, 38 seconds Okay. Okay. And so say in this savings uh like how do we see the 11,000 cr order book in terms of our exhibition like how much of it is a fixed order 29:46 29 minutes, 46 seconds book and how much the raw material inflation will affect this? 29:50 29 minutes, 50 seconds No. So all major items are tied up mostly let's say the for the portions of you know the turnkey projects where the 29:57 29 minutes, 57 seconds model comes comes up in our scope. So there also we have tied up with back to 30:04 30 minutes, 4 seconds back with the suppliers uh and the rest of the project see the project timelines are I mean sort so 30:12 30 minutes, 12 seconds 6 to 9 months let's say or one years so I mean the fluctuations of the pricing of commodities also will not be impacting much 30:21 30 minutes, 21 seconds so when you say 6 9 12 months is my project's execution and I have my 11,000 cr order book so can we see a 10 11,000 cr execution this year then 30:30 30 minutes, 30 seconds no so I uh these orders a few of them are orders coming where the NTP is still to be received. So those projects would 30:38 30 minutes, 38 seconds be let's say for uh 15 months 14 months but part of that will be coming in this fiscal. So the on the revenue side I 30:46 30 minutes, 46 seconds mean we will be growing let's say at the 15% growth rates from the last quarter last year. 30:54 30 minutes, 54 seconds Okay sir and all the best. 31:00 31 minutes Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 31:07 31 minutes, 7 seconds comes from the line of Jesus capital. Please go ahead. 31:13 31 minutes, 13 seconds Yeah. Hi, thanks for uh giving me opportunity. Uh I had couple of questions. So uh uh in terms of uh the 31:23 31 minutes, 23 seconds recent hike in raw material prices and uh coupled with a very very volatile uh 31:30 31 minutes, 30 seconds USD INR rates. Uh you think that this could adversely affect uh our margins although you have already mentioned that 31:38 31 minutes, 38 seconds you know uh your raw material supplies are tied up but can rupee dollar play a soft spot in terms of margins? 31:47 31 minutes, 47 seconds Not really. Not really. So because uh uh so so if you see the dollar valuation 31:55 31 minutes, 55 seconds part of things that is not to our account basically most of the it for domestic supply we are purchasing from India. So they're all fixed contract and 32:04 32 minutes, 4 seconds uh such fluctuations is not impacting us for in for internationals I think we'll be benefiting from the variations 32:11 32 minutes, 11 seconds and additional there is a natural hedge available because our revenue is also in USD. So there won't be any impact in terms of 32:19 32 minutes, 19 seconds significant impact in terms of any foreign exchange variation. 32:22 32 minutes, 22 seconds All right. So net net uh a depreciating rupee is actually beneficial to us. I mean that's what is reflected in this quarter's result also. 32:30 32 minutes, 30 seconds Yeah. For the international market. Sure. Yeah. 32:33 32 minutes, 33 seconds Okay. Uh uh secondly uh in terms of our uh uh you know wind escalation to get 32:40 32 minutes, 40 seconds into uh uh wind energy uh projects also what is the status there? 32:47 32 minutes, 47 seconds So we are doing one project for one of our clients and the projects on track and uh to remove the intermittency and 32:55 32 minutes, 55 seconds all the the orders inflow this years we are expecting that few I mean there would be better tractions on the wind projects. So this one projects which we 33:05 33 minutes, 5 seconds are doing is already on track. We are expecting that we'll be adding few more into the wind side. 33:10 33 minutes, 10 seconds Okay. So when you're giving the guidance of about 15% growth that would also include uh the potential uh wind 33:17 33 minutes, 17 seconds projects few of them. Yes it could. Yeah this is all inclusive or uh is it over and above our guidance? I mean I just wanted to check that. 33:26 33 minutes, 26 seconds No. So that that would be including battery, wind and solar everything. Yeah. 33:32 33 minutes, 32 seconds All right. Okay. Uh uh just one more thing. I know you've been asked a lot of times about Reliance New Energy. You've 33:39 33 minutes, 39 seconds uh you know answered so many of them. Uh but any guidance or any idea in terms of when could the execution start? 33:50 33 minutes, 50 seconds Just when could the order inflow start for us? 33:54 33 minutes, 54 seconds So so so current year it should happen but I mean just to pinpoint that it is going to happen this quarter or next. 34:01 34 minutes, 1 second I'm not in a position to tell you now but this this year definitely it should happen. 34:06 34 minutes, 6 seconds Okay. So uh okay I don't want to push you on that but I mean this year uh it 34:14 34 minutes, 14 seconds will not happen that this year means Q4 of uh FI27 right? Uh I will say no comment at this point. 34:23 34 minutes, 23 seconds Okay. 34:25 34 minutes, 25 seconds uh uh and uh uh just one last thing uh I mean we've taken a lot of hit on uh our international portfolio in terms of 34:34 34 minutes, 34 seconds taking the write offs and everything. So u is every uh kind of problem that we 34:41 34 minutes, 41 seconds face there is behind us or is there uh something more that we need to provide for? 34:48 34 minutes, 48 seconds So we are almost done but there are few cases uh in the US market. So few I mean under court court cases. So that will 34:58 34 minutes, 58 seconds take some time but uh uh yes you can say other than the US cases uh more or less we are done. 35:06 35 minutes, 6 seconds So what would be the approximate value of uh those uh likely hits I mean those projects? 35:15 35 minutes, 15 seconds Yes, since it is a court cases and talls who have not we are not considering that we will be losing the case and therefore the provision to be made at this stage 35:22 35 minutes, 22 seconds because no forget the provision but what is the uh value of uh the total uh contracts or for the cases that we are fighting for? 35:33 35 minutes, 33 seconds We are out of money for around more than 200 cr and uh that is predominantly backed by the promoters. Okay. 35:41 35 minutes, 41 seconds Underity agreement. All right. On the US. 35:44 35 minutes, 44 seconds So 200 cr is the worst case scenario if we lose all the cases. But that's backed by promoter indemnity. 35:52 35 minutes, 52 seconds Yeah. Yeah. Yeah. That's backed by promoter. But uh I mean at least we'll have to take the hit first and then recover the money. But uh uh uh 200 cr 36:01 36 minutes, 1 second is the worst scenario right no could be more in fact yeah 36:09 36 minutes, 9 seconds we'll come back to you so I think this on these numbers will come back to you right no I mean because this is important 36:17 36 minutes, 17 seconds because uh you know uh you know the uh performance of stock has gone down drastically primarily because we've 36:24 36 minutes, 24 seconds taken so much of a hit so now after taking so much of a it you're still saying that it could be a bigger number. 36:31 36 minutes, 31 seconds Uh I mean that's uh so is how how big that number could be you know how many 36:38 36 minutes, 38 seconds cases you are filing fighting for and what is the total amount of uh cases that we are fighting for. 36:46 36 minutes, 46 seconds See I think at this point since it is in litigation um and and it is expected to take time it is difficult to assertain a 36:54 36 minutes, 54 seconds certain number. I think what Ajit has already alluded to is the point that as a company we are already cash out uh on 37:02 37 minutes, 2 seconds 200 cr and most of it is indemnified. So there's no question of taking any hit on this 200 cr. It is money that will come 37:09 37 minutes, 9 seconds to the company from the promoters once the case is settled. Yeah. what CKT was alluding to and what we've always 37:16 37 minutes, 16 seconds maintained is if the case goes adversely against us then there is always a chance that there may be additional cost like 37:24 37 minutes, 24 seconds for example in the uh last US case there were litigation costs which we had to bear which was you know over and above 37:31 37 minutes, 31 seconds um you know the settlement that had to happen. So uh those are additional things and those can only be uh you know 37:38 37 minutes, 38 seconds asserted at the time that the final resolution on those litigations happen. 37:42 37 minutes, 42 seconds If it is in our favor, we we won't have to pay anything. But if it goes against us, then you know there could be additional cost. And I think that's the 37:50 37 minutes, 50 seconds point that CKT was trying to allude to here. And that's the exactly the reason why we are unable to put a number to it at this point of time as well. 37:58 37 minutes, 58 seconds No, I I completely agree. But if you let's say fighting for total of 200 crores, the litigation cost will be some 38:07 38 minutes, 7 seconds percentage of that. It will not be a multiple of that number. Right? I mean that is that understanding correct? 38:17 38 minutes, 17 seconds Can you just repeat that? So if if we are saying that our total uh outstanding cases uh the amount total uh that we are 38:26 38 minutes, 26 seconds fighting for is about 200 crores and uh we are unable to put uh an number 38:34 38 minutes, 34 seconds additional number to that because that could be some additional litigation cost if we lose uh that we will have to pay. 38:40 38 minutes, 40 seconds But that litigation cost or that additional amount uh uh uh would be a percentage of this 200 crores. It will 38:50 38 minutes, 50 seconds definitely not be multiple of 200 crores. Right. 38:53 38 minutes, 53 seconds So the point is that we are speculating at this point on what that amount could be. Isn't it? I mean our view has been that we will be uh you know in a very we 39:02 39 minutes, 2 seconds are in a strong very strong position with respect to this regards to this case and effectively that you know this case will go in our favor. So to say 39:10 39 minutes, 10 seconds that uh you know that that first of all the case will go against us and then therefore the quantum of amount that's we are talking of worst case scenario. 39:19 39 minutes, 19 seconds My question is that if we have to pay additional litigation cost it cannot be more than 200 crores. It can be 10 20 30 39:27 39 minutes, 27 seconds 40% of 200 crores. Right? It cannot be two times 200 crores or three times 200 crores. That's what I'm asking. 39:34 39 minutes, 34 seconds Litigation cost. Yes. But if but it depends all all depends on the judgment is is the point, right? 39:40 39 minutes, 40 seconds Claims and counter claims from the Okay. So there could be additional penalties. I mean this is the worst case scenario. Again I'm repeating but uh uh 39:48 39 minutes, 48 seconds there could be additional penalties over and above 200 crores. That's what you're saying. 39:53 39 minutes, 53 seconds Yeah. If you lose the case which chances are very remote. 39:58 39 minutes, 58 seconds Okay. So what is the likely timeline? Uh you have any idea on this? 40:04 40 minutes, 4 seconds Oh since it is under court so it can take maybe two years because US court uh 40:11 40 minutes, 11 seconds all of you are aware that it's taking a much longer times. So it may take two years in fact. 40:18 40 minutes, 18 seconds Okay. Okay. and uh we've settled a few cases earlier where you know it's a I mean both of both the parties have 40:26 40 minutes, 26 seconds withdrawn the cases and all so u I mean considering a large write offs that 40:33 40 minutes, 33 seconds we've taken are there any chances of recoveries or we we would want to settle it uh uh you know where both the parties just withdraw the cases. 40:45 40 minutes, 45 seconds No also our efforts are always to mutually agree and settle the case in our favor. If that happens then that is a win-win situation right and if it 40:53 40 minutes, 53 seconds doesn't happen then in any case we are either in the arbitrations or we are into the court. So then we will wait for the judgment from the either arbitration 41:02 41 minutes, 2 seconds panel or from the court but our efforts are always there to settles if it comes to our terms and condition. 41:12 41 minutes, 12 seconds All right. Okay. That's it from my side. Thank you sir. Thank you. 41:17 41 minutes, 17 seconds Thank you. Next question comes on the line of Nirmal with Ajit Vidla Sun Life AMC Limited. Please go. 41:25 41 minutes, 25 seconds Uh hello sir. Thank you for taking my question. Am I audible? Yeah. Hi Nal. How are you? Good morning. 41:32 41 minutes, 32 seconds Hello. Yes. Thank you sir for taking my question. Uh so you uh discussed briefly about BSS as a space. I just wanted to understand how are you approaching this 41:40 41 minutes, 40 seconds in terms of building your order book in general and uh uh in addition to that uh just wanted to understand what are the 41:48 41 minutes, 48 seconds capex and timelines like and uh in terms of customer expectations uh how are they preferring standalone or 41:57 41 minutes, 57 seconds hybrid and uh like how is the BSS capacity determined by uh an IP 42:05 42 minutes, 5 seconds no so so yes is a good question basically. So if you look at the overall industry scenario so one is that uh 42:14 42 minutes, 14 seconds megawatt capacity addition from solar and wind is projected which is onto the domain. So let's say from the government of India target point of point of view 42:23 42 minutes, 23 seconds we still have to reach from let's say 250 megawatt to 500 megawatt 250. So 42:30 42 minutes, 30 seconds solar alone will have the space for 150 megawatt additions and then rest of the other renewables. Now uh since the 42:38 42 minutes, 38 seconds energy generated from the renewables has been never been at par with the the thermal power plants or the fossil fuel 42:45 42 minutes, 45 seconds power plants and therefore there has been a strong urge to add the batteries. 42:50 42 minutes, 50 seconds So the hybrid will continue therefore the wind also will take traction and the battery also will keep on adding. So far 42:57 42 minutes, 57 seconds on the current uh reports published by M&R uh we are expecting that around 60 43:04 43 minutes, 4 seconds megawatt hour gawatt hour kind of battery opportunity would be coming and there is also policy I mean taken out by 43:12 43 minutes, 12 seconds ministry that uh with every single uh solar plant installation there has to be 2 hours of base uh capacity additions 43:21 43 minutes, 21 seconds right so now again it depends on the I mean whether it is for the only utilities for 2 hours as per the mandatory condition requirement or from 43:29 43 minutes, 29 seconds the captive point of view where people would be looking for roundthe-clock battery additions. So the battery storage opportunities will definitely be 43:37 43 minutes, 37 seconds keep on adding uh to this and therefore we are also equally prepared. So when you I mean as of now when you give the 43:45 43 minutes, 45 seconds guidance for the uh our revenue growth this would be mix of the battery uh and then the solars and part of wind also. 43:54 43 minutes, 54 seconds So, so the from the capex perspective if we see then then there's a huge opportunities coming from I mean all three 44:03 44 minutes, 3 seconds uh okay so for like a standalone project what are the capex capex intensity like and 44:12 44 minutes, 12 seconds as I said this is out of our the current order book UV when you say 11,000 odd we 44:19 44 minutes, 19 seconds have around uh 300 close to 300 cror coming from the battery but the orders that will inflow 44:28 44 minutes, 28 seconds that will come as inflow in the rest of the quarters will determine on the kind of you know the opportunity that will be coming in so on the conservative number 44:38 44 minutes, 38 seconds you can say that let's say in our new orders books I'm expecting 20% order to come from the battery this will be from 44:44 44 minutes, 44 seconds the the the solar and also okay so and just uh one last question uh 44:51 44 minutes, 51 seconds so uh currently uh when you are approaching customers they're preferring hybrid over standalone is it is that 44:59 44 minutes, 59 seconds understanding correct no standalone BSS projects right no there are I mean standalone BSS 45:07 45 minutes, 7 seconds project also because as per all those projects that have been built only as a solar they are also as per the obligations now they have they are 45:15 45 minutes, 15 seconds adding some 20% 15% 10% I mean depending upon the hours of energy requirement so 45:23 45 minutes, 23 seconds that is also coming up. So that both ways. So the projects that will be coming that will be coming as a hybrid for solar and battery or maybe wind and 45:31 45 minutes, 31 seconds battery or maybe solar wind on battery and there will be a standalone battery also. So both all three kinds of you know the I mean the market opportunities are being seen. 45:42 45 minutes, 42 seconds Okay sir. Thank you. Thank you so much for the answers. Thank you. Thanks Near. 45:49 45 minutes, 49 seconds Thank you. Next question comes from the line of Akash Meta with Canada HSBC life. Please go ahead. 45:56 45 minutes, 56 seconds Hi. Yes, that is one question. Uh just wanted to understand on Reliance again uh historically I mean when you 46:05 46 minutes, 5 seconds mentioned that you are engaging with Reliance what exactly would have done till now have visited the ground and 46:13 46 minutes, 13 seconds done some checks or what exactly is happening in terms of the engagement? Yeah. 46:24 46 minutes, 24 seconds No. So on reliance see where are the APC players Reliance is developer right and since it is a large development project 46:33 46 minutes, 33 seconds by them. So the mode of executions are being decided by them. So supply to 46:40 46 minutes, 40 seconds their scope part supply in the EPC scope executions by EPC or the construction company all these things are being discussed. 46:48 46 minutes, 48 seconds Since it is a huge investments therefore it's important that there should be enough time for them also to give on the selection of the technology and all 46:56 46 minutes, 56 seconds those kind of things. So our involvement in this practice is that we as a I mean very strong and you know the maybe 47:04 47 minutes, 4 seconds India's number one EPC player in solar we have been I mean deeply engaging with them in discussions of every single bit 47:12 47 minutes, 12 seconds of things right and then uh once it comes for the final rollout stage then I 47:19 47 minutes, 19 seconds mean our expectation is that we should be getting the largest share from them. 47:26 47 minutes, 26 seconds Okay. Thank you. 47:28 47 minutes, 28 seconds And uh ladies and gentlemen, the management 47:38 47 minutes, 38 seconds line has been disconnected. Please be on hold while we quickly get them reconnected. 48:44 48 minutes, 44 seconds Ladies and gentlemen, the management line has been reconnected. Please go ahead. 48:49 48 minutes, 49 seconds I'll promote the next participant that is Fzel Hava from HG Havan. Please go ahead. 48:56 48 minutes, 56 seconds Uh so where do we stand on the bank uh ratings? Is there any chance of any improvement and are we finding it now 49:03 49 minutes, 3 seconds difficult to get BGs issued because of the uh downgrade of our ratings and what are the kind of terms that they set us? 49:13 49 minutes, 13 seconds What are the kind of terms they have set? uh if we have to improve our ratings does it mean addition to any kind of equity? 49:21 49 minutes, 21 seconds So there is uh first question there's no downgrade in the rating we are rated as tripleB plus uh in the beginning of the 49:29 49 minutes, 29 seconds year we were rated as triple B minus so during the year we have been upgraded for a rating by two notch 49:36 49 minutes, 36 seconds uh in terms of support from the bank we have been able to secure broadly 2,800 cr new credit lines uh during the last 49:44 49 minutes, 44 seconds fiscal and bankers are supporting in fact recently we got additional sanction from our lead bank also 49:52 49 minutes, 52 seconds and we have added few new banks in our consortium during the year. So we are getting support from the banks. Uh our 49:59 49 minutes, 59 seconds cost for LC and bank guarantees also got reduced during the year significantly and uh the moment we'll get additional 50:08 50 minutes, 8 seconds orders and and we have better legibility in terms of revenue. Uh we are hopeful to get additional credit lines also based on the requirement. 50:16 50 minutes, 16 seconds And sir about Azani orders do you think that that those may be much quicker uh because they are already on the go in 50:24 50 minutes, 24 seconds Kawa and generally they are more much more agile in the solar space. 50:32 50 minutes, 32 seconds Yeah. So basically uh this timeline for this project execution is around 13 months and the project is uh I mean 50:41 50 minutes, 41 seconds doing really well. So Mr. Bishie I mean that's the pace that we are keeping and then orders will keep on flowing. I 50:49 50 minutes, 49 seconds believe that's our long-term understanding with Halani is right and uh sir how do you uh see the 50:58 50 minutes, 58 seconds international space going? So is there any chance that we get some larger orders from other places apart from the Nigeria orders and 51:07 51 minutes, 7 seconds uh can you give some color as to you know what kind of bidding competition was there in the cold India order which we recently won? Has that uh the the 51:16 51 minutes, 16 seconds bidding uh velocity subsided? 51:22 51 minutes, 22 seconds Uh no so so coal India orders will say yeah so coal India uh they have a good portfolio basically coming in. So that 51:30 51 minutes, 30 seconds was their I think second project of the large size and there were quite a few numbers of you know the biders in this including L&T and the larger players and 51:39 51 minutes, 39 seconds of course you have been declared alone NTP is still awaited uh with this we are expecting that we should be participating in the coal India tenders 51:48 51 minutes, 48 seconds as well. So on the PSU friends if you say, NTPC, CO India, AJBNL, they really remain to be a large developers on the 51:56 51 minutes, 56 seconds international order booking side. Yes, I mean this years you can see some skewess towards the more international projects. 52:03 52 minutes, 3 seconds That's the traction we can clearly see and our focus area still remain the Africa, the Middle East and uh select 52:12 52 minutes, 12 seconds geograph select countries in Europe. So the size and the quantum of the orders I can't commit to you at this stage but 52:20 52 minutes, 20 seconds then you can always expect that from the last years the order book positions on international markets will definitely be more than that we are closely working on 52:28 52 minutes, 28 seconds few of the projects which is which are of fairly very large size and uh we are in better positions to get this out. 52:38 52 minutes, 38 seconds Okay. Thank you very much. I appreciate you answering my question so well. Thank you. Thanks. 52:45 52 minutes, 45 seconds Thank you. Next question comes from the line of Amish Kanali with Novice Investment Manager. Please go ahead. 52:53 52 minutes, 53 seconds Yeah. Hi sir. Uh sir, congrats on Col India uh you know order L1 at least as of now. Uh and sir the observation is 53:00 53 minutes that we we know we are uh uh we are able to engage with uh Reliance Adani group and also you know PSU spender like P 53:09 53 minutes, 9 seconds India which means you know uh it reiterates our you know market leadership position of all the you know 53:17 53 minutes, 17 seconds capex on the solar side. Uh sir the question uh to you sir is one uh you had mentioned that you know we have u an x 53:24 53 minutes, 24 seconds kind of uh order bit pipeline and last year uh you know we had we were successful in uh you know achieving say 53:31 53 minutes, 31 seconds 15% market share in all India spending of solar uh sir based on your understanding of this order pipeline 53:38 53 minutes, 38 seconds which may be a a subset of all India orders what is the likely win rate you know maybe a large percentage variation 53:45 53 minutes, 45 seconds also may happen because uh you know a large call coal India order type win may not be predictable but I mean range of 53:52 53 minutes, 52 seconds like a win ratio would really help us to understand this year's you know order book uh growth if at all we can get some basic 54:01 54 minutes, 1 second historically if you see that our heat ratio have been you know around 25 to 54:08 54 minutes, 8 seconds 28%. Right? And even today uh with respect to the last year's orders and the overall market positioning that we 54:16 54 minutes, 16 seconds have our market share in the solar space is around 25% more than 25%. Right? So and with the next couple of years four 54:24 54 minutes, 24 seconds years to I mean achieve the target of 2030 uh the opportunities 54:31 54 minutes, 31 seconds are I mean if not I mean we'll say I mean it is more than the opportunity that have been made available in the 54:38 54 minutes, 38 seconds last year also. So with this run rate our cap market share would be definitely more than 25%. That's what I can give you at this stage. 54:46 54 minutes, 46 seconds Uh sure sir that's helpful. And sir uh what are the key reasons why these you know slowdown has happened recently uh 54:53 54 minutes, 53 seconds uh and you know because of which this fourth quarter order book was a bit slower and historically uh we understood the execution timeline was 6 to 9% in 55:01 55 minutes, 1 second our case but you're mentioning uh one of the faster moving order uh also is now say 13 uh months maybe our ticket size 55:10 55 minutes, 10 seconds of the order book has uh you know grown which is probably taking this. So if you can give us some sense of one outstanding uh you know order book 55:18 55 minutes, 18 seconds execution timeline for the order book and second sir what are the key reasons which is holding up uh this you know 55:25 55 minutes, 25 seconds overall order uh you know uh pace uh is it more due to this you know international issues that you had 55:32 55 minutes, 32 seconds mentioned about uh you know pricing of uh you know uh key um uh you know material including China uh you know uh 55:40 55 minutes, 40 seconds uh export withdrawal subsidy that you had mentioned or silver crisis or is it you know India issues on terms of land availability and and some old issues 55:49 55 minutes, 49 seconds which are you know continues to bother us. 55:51 55 minutes, 51 seconds Yeah. So basically there are a couple of uh reasons. So for the last quarter slowdown I will say that there was basically commodities price surge. So 55:59 55 minutes, 59 seconds from January onwards if you see the LMA prices for copper almaniums other things going up. So the developers chose to 56:06 56 minutes, 6 seconds probably take a back seat for some times. I mean just post. So that was one and then for the larger industrial perspective if you see the 56:14 56 minutes, 14 seconds connectivities particularly in one of the regions Rajasthan I mean there has been two major area in the India Rajasthan and Gujarat. So in Rajasthan 56:22 56 minutes, 22 seconds some of the projects I mean in the substation projects and on connectivity issues are really cropping up around more than 40 gawatt of kind of things 56:30 56 minutes, 30 seconds are where the PPA is already signed but the connectivity is not there. So those are the and there there was a GI issue as well. So there were those were the 56:37 56 minutes, 37 seconds reasons why the project development in Rajasthans were basically delayed. uh but now since GI decisions from the 56:45 56 minutes, 45 seconds court has already come and uh the substations all those which were supposed to be commissioned in 2027 56:53 56 minutes, 53 seconds or maybe early 2028 I think delayed by quarter of weeks a quarter of months 57:00 57 minutes right and so but then 22 2028 would be the time when then all those things will clear so I'm not impact I mean 57:07 57 minutes, 7 seconds understanding that basically because of I mean while it has impacted the I mean development in Rajasthan but going 57:15 57 minutes, 15 seconds forwards the kind of you know the opportunities that we have seen that will keep on coming okay so uh sir this year may not be as 57:24 57 minutes, 24 seconds bad as say uh last year in terms of that no it should not be as hopefully hopefully it should not be as bad 57:32 57 minutes, 32 seconds right and and sir the last questions here on the on the exceptional uh you know side uh you know the the question 57:39 57 minutes, 39 seconds is one we provided for that 600 11 cr of this year's you know exceptional item because of which overall you know year 57:46 57 minutes, 46 seconds is at a loss. The question is one uh is there any outstanding payment that we've done for which you know uh promoters the 57:54 57 minutes, 54 seconds 12 promoters need to pay us and and that can come as this year's income as a reversal one and two uh is there any uh 58:02 58 minutes, 2 seconds is there any you know that the out of settlement that we have done uh you know which we have press release was given 58:09 58 minutes, 9 seconds yesterday uh is there any uh upside or downside uh in terms of known you know uh and settled cases uh just to give you an update. us there. 58:20 58 minutes, 20 seconds So on the uh prestige whatever we have given yesterday on that settlement there is neither any upside nor any downside. So 58:28 58 minutes, 28 seconds we have to the case has been closed and without any liability or payment obligation either of the party 58:36 58 minutes, 36 seconds on that 611 cr uh write off whatever we did uh there was some payment outgo from 58:42 58 minutes, 42 seconds our side to the c uh to the party and we have already paid the full amount by end 58:48 58 minutes, 48 seconds of this quarter and this case was un undemnified uh matter. So there is nothing which can be recovered from the 58:56 58 minutes, 56 seconds promoter on this particular case. On other cases based on based on the crystallization of the liability and 59:04 59 minutes, 4 seconds closure of the cases we can raise the claim on on the promoters on the earth so promoters 59:12 59 minutes, 12 seconds uh which whatever cases are crystallized by 30th September and we'll do that bas bas based on outcome of all those cases. 59:21 59 minutes, 21 seconds Okay. So as of now there is no claim on promoters and they have been paying as and when you know that that is crystallizing sir can we assume that that's right that's right last year 59:30 59 minutes, 30 seconds claims were raised on the promoters they have paid it full around 180 cr. Okay. 59:35 59 minutes, 35 seconds Okay. Thanks a lot for all the discussion and all the best sir. Thank you. Thank you. 59:42 59 minutes, 42 seconds Thank you. Next question comes from the line of Deepak Budar Safire Capital. Please go ahead. Yeah, I'm audible sir. 59:50 59 minutes, 50 seconds Yeah. Hi Deepak. Morning. 59:51 59 minutes, 51 seconds Yeah. Hi. Good morning. Um so sir few queries from my side now. Um the the bid pipeline that you have mentioned is 59:58 59 minutes, 58 seconds around close to 31 gawatt right? Um so c can you also um tell me in terms of rupees crores how much would that amount to? 1:00:07 1 hour, 7 seconds No overall opportunities if you see that is I mean over 50,000 crores basically 1:00:14 1 hour, 14 seconds maybe 55,000 crores right in the I mean overall so as you have been I mean out 1:00:21 1 hour, 21 seconds of this let's say our market shares will continue to be 25%. 1:00:25 1 hour, 25 seconds Uhhuh. So, so order books would be in the range of 10 I mean 15% more than the the order book that 1:00:34 1 hour, 34 seconds you have this year something like this right so 15% currently close to 12,000 crores so 15% so so basically close to 14,000 1:00:42 1 hour, 42 seconds crores order book we we might target by fi 27 end would that be a fair assumption yeah so basically there depends on lot of factors I mean you say have seen the 1:00:51 1 hour, 51 seconds geopolitical wars or all those things so conservatively we feel that we must growing at 15% uh growth rate uh right 1:00:59 1 hour, 59 seconds from the last year. So yeah so 15% growth rate both in order book as well as in revenue is that is what we 1:01:06 1 hour, 1 minute, 6 seconds are looking at right I think so yeah you're right okay understood and and and you had mentioned I think I think gross margin 1:01:15 1 hour, 1 minute, 15 seconds the presentation gross margin from EPC business to stabilize around 8 to 10% and M at 20%. I mean this is the medium-term view we have on the on the margin front, right? 1:01:26 1 hour, 1 minute, 26 seconds Yeah. Right. 1:01:27 1 hour, 1 minute, 27 seconds That's right. Depending on the nature of the job whether it is turnkey or only B US correct and what does it translate to a 1:01:34 1 hour, 1 minute, 34 seconds bit margin? I mean four to 5% would that be a a fair number to look at for us? 1:01:40 1 hour, 1 minute, 40 seconds Yeah. So our overheads would be in the range of four to four and a half% max to max. Uh-huh. 1:01:46 1 hour, 1 minute, 46 seconds Yeah. And then we can four to four and a half%. So even if you assume an average of let's say 9% um so 1:01:53 1 hour, 1 minute, 53 seconds so so yeah I mean four to 5% would be a fair um range I mean where as a company we can work with right 1:02:02 1 hour, 2 minutes, 2 seconds hello yeah okay that that that that's right okay understood and in terms of uh BSS I 1:02:10 1 hour, 2 minutes, 10 seconds think you mentioned about 20% of orders you expect to get from BSS opportunities right going forward would that would that be right 1:02:18 1 hour, 2 minutes, 18 seconds yeah that's the basically kind of mixed uh trend which is being witnessed in the market. So hybrid portions will definitely be adding on. So so keeping 1:02:27 1 hour, 2 minutes, 27 seconds that opportunity in mind we expect that our orders will be also adding around let's say 20% of you know the overall market uh in the in the segment of the storage battery and storage. Yeah. 1:02:39 1 hour, 2 minutes, 39 seconds Okay. And then what's the margin profile we expect in BSS should be same as the solar I mean the margin profile will not change. So 8 to 10% gross margin. 1:02:49 1 hour, 2 minutes, 49 seconds Yeah. 8 to 10%. If it is let's say only the device of the only only the balance of supply for the battery project standalone battery project could be 10%. 1:02:58 1 hour, 2 minutes, 58 seconds If it is including the supply of the battery then it could be 8%. Yeah. Okay. Understood. 1:03:05 1 hour, 3 minutes, 5 seconds Fair point. Um I I I got it. Yeah that would it from my side. I wish you wish you all the very best. Thank you. 1:03:13 1 hour, 3 minutes, 13 seconds Thank you. Thanks. 1:03:17 1 hour, 3 minutes, 17 seconds Thank you. So ladies and gentlemen, due to time constraint, that was the last question. With that, we conclude today's 1:03:24 1 hour, 3 minutes, 24 seconds conference. On behalf of Sterling and Wilson Renewable Energy Limited, that concludes this conference. Thank you for joining us. You may now disconnect your notes.