Tata Power Company Limited — Q4 FY26

Tata Power Company Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=BLyOh8IRyVE Published: 1 day ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Tata Power Q4 and full year FY26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your Touchstone phone. 0:26 26 seconds Please note that this conference is being recorded. I now hand the conference over to Dr. Pavir Finha, CEO 0:34 34 seconds and managing director of Tata Power for his opening remarks. Thank you and over to you sir. 0:41 41 seconds Uh good evening everyone and thank you for joining for this call. 0:46 46 seconds I have with me my colleagues jurya the CFO 0:52 52 seconds pat the group financial controller kuri chief uh treasury and investor relation 1:00 1 minute I'm sure and other colleagues from finance and corporate communication uh before I share with you some of the 1:09 1 minute, 9 seconds major highlights of the uh of the future performance I guess uh Let me just uh 1:16 1 minute, 16 seconds quickly share with you our understanding of the power sector in the last few months and as of now uh we saw in the 1:26 1 minute, 26 seconds last quarter that uh the increase in demand was very modest of 2%. And uh we 1:35 1 minute, 35 seconds are now seeing from April onwards that the demand has gone up by five to 6%. 1:41 1 minute, 41 seconds And uh the peak power also has touched 256 gawatt. We do expect that uh in next 1:50 1 minute, 50 seconds 1 to two months this will cross about 270 gawatt and this is because of uh the 1:59 1 minute, 59 seconds heat wave that we see across the country and also because of the prediction that 2:06 2 minutes, 6 seconds we will have a severe impact because of Elino. So uh we do expect that the demand will increase both in terms of 2:14 2 minutes, 14 seconds peaking requirement and energy requirement and we are already seeing in many places Mumbai has crossed 4,600 2:23 2 minutes, 23 seconds uh Delhi is more than 6,500 and so also many other places we are finding that the demand is going up. Uh 2:33 2 minutes, 33 seconds fortunately in our country uh our power systems are very stable. U the increased 2:40 2 minutes, 40 seconds demand is met mainly by our coal based plants and hydro plants and also renewable solar and wind supporting them 2:49 2 minutes, 49 seconds during solar hours and wind hours. We uh have also seen that for our imported coal based plants there has been no 2:58 2 minutes, 58 seconds impact per se. uh there is adequate supply of coal that is coming. Uh there is of course a small increase in the 3:05 3 minutes, 5 seconds prices of coal and shipping but those are very very nominal increases that has been seen uh in last two months. Uh 3:15 3 minutes, 15 seconds coming to the financial performance I think has posted a very strong financial and operational performance in FY26. 3:24 3 minutes, 24 seconds uh this is in spite of the fact that Muna did not operate for 9 months and uh we have for the first time uh have 3:32 3 minutes, 32 seconds reported a full year pack of nearly more than 5,000 cr and ITA which is also gone 3:41 3 minutes, 41 seconds up by nearly 11% to 16,90 K because of the strong performance of our existing 3:48 3 minutes, 48 seconds businesses of generation transmission distribution and also uh During the quarter also we have seen our IITA has 3:57 3 minutes, 57 seconds jumped by nearly 10% to 4,216 K compared to 3,829 4:04 4 minutes, 4 seconds Kores last year. Uh that has gone up by 8% to 1416 Kores compared to 136 last year in the 4:13 4 minutes, 13 seconds same quarter. Uh this of course has been driven by all our businesses. Um I have been sharing with you that our solar 4:22 4 minutes, 22 seconds cell and module manufacturing plant is doing exceedingly well. Uh we have stabilized the operations of the plant 4:30 4 minutes, 30 seconds and the e are very good. We have seen during the year the uh plant has 4:37 4 minutes, 37 seconds delivered a pat of 857 kes which is more than double of the previous year. 4:43 4 minutes, 43 seconds Similarly, rooftop solar has done exceedingly well uh with doubling of the 4:50 4 minutes, 50 seconds installations and uh we have uh also seen not only in the quarter but through the year the performance has been 4:58 4 minutes, 58 seconds exceedingly well with a pat of nearly 500 K 499 K. Uh discom has done 5:06 5 minutes, 6 seconds exceedingly well. Uh in the previous year it the whole year P was uh just 439 5:14 5 minutes, 14 seconds K. Uh this year we we have a PT of 809 K. uh in our utility scale renewable we 5:22 5 minutes, 22 seconds have been uh able to commission a large number of projects and u in-house 5:30 5 minutes, 30 seconds projects uh which have been commissioned have started ending results and we do 5:36 5 minutes, 36 seconds expect that the nearly 5 gawatt of projects which are under implementation 5:43 5 minutes, 43 seconds and these are all in-house projects 50% of it will be completed in this financial year and the balance 50% in 5:50 5 minutes, 50 seconds them by 208. So a very robust pipeline of projects and uh we are on top of them in terms of implementing and start 6:00 6 minutes generating power from all those plants in the coming two years. Um we did have 6:07 6 minutes, 7 seconds a challenge of Mundra and uh because of that we had issues about the shipping 6:13 6 minutes, 13 seconds profit also but that is a thing of the past. because we have now concluded the SPA with Gujarat and we are in the 6:22 6 minutes, 22 seconds process of finalizing it with all the other four states which we expect in next four to six weeks we will complete. 6:31 6 minutes, 31 seconds Uh they are in very advanced stage of approval in these governments. uh we uh are already operating the plant under 6:39 6 minutes, 39 seconds section 11 but with a understanding that the tariff will be as per the SPA and that has been accounted for in our 6:48 6 minutes, 48 seconds quarterly results and going forward it will be accounted for in our operations. 6:55 6 minutes, 55 seconds uh our distribution business everywhere uh will continue to grow and we will have large capital expenditure as 7:03 7 minutes, 3 seconds planned in our large utility scale projects as also in our hydro projects 7:10 7 minutes, 10 seconds in Bhutan and the pumped hydro project that we are implementing in Bhitpuri. Uh 7:17 7 minutes, 17 seconds we have informed you that we are going to start work in our new 10 gawatt of 7:24 7 minutes, 24 seconds wafer and inbot plant in two stages. Uh and that will cater to our existing operations of of cell and module plant 7:33 7 minutes, 33 seconds which will require Indian made uh wafers from 1st June 2028 onwards. So 7:42 7 minutes, 42 seconds we do feel that uh all our businesses uh which have now stabilized will give very good performance in the coming quarter. 7:51 7 minutes, 51 seconds Uh on the balance sheet also I find that our debt is at 56,000 cr and uh this is 7:59 7 minutes, 59 seconds in spite of a capital expenditure of nearly 13,000 cr in the last financial year. Uh our leverage ratios are very 8:07 8 minutes, 7 seconds stable. Our net debt to underlying IITA is 3.3 and our net debt to equity is 1.2 8:14 8 minutes, 14 seconds which is very competitive for infrastructure and power industry and we do expect that we will maintain similar 8:23 8 minutes, 23 seconds discipline while going forward uh with our new investments in the coming years. 8:28 8 minutes, 28 seconds uh as we have been sharing with you uh we believe in growing but the growth has to be very 8:35 8 minutes, 35 seconds calibrated so that the financial uh discipline and the balance sheet discipline is maintained and uh we are 8:43 8 minutes, 43 seconds committed to uh enhance our generation capacity as also enhance our transmission distribution and 8:52 8 minutes, 52 seconds hydrogeneration facilities in the country as also and uh we will continue to uh perform exceedingly well in the coming quarter. 9:04 9 minutes, 4 seconds Uh with this uh I will uh conclude uh my part of sharing my thoughts on the on the company as also on the power sector. 9:17 9 minutes, 17 seconds I do uh look forward to hear from you and uh take your inputs as also take your questions and respond to them. So 9:26 9 minutes, 26 seconds you can please start asking the question. 9:30 9 minutes, 30 seconds Thank you very much. We will now begin with the question and answer session. 9:35 9 minutes, 35 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question, you may press star and two. 9:47 9 minutes, 47 seconds Participants are requested to use handsets while asking a question. 9:52 9 minutes, 52 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 10:00 10 minutes Your first question comes from the line of Sumit Kar from Access Capital. Please go ahead. 10:06 10 minutes, 6 seconds Good evening Dr. Fin. You mentioned in your opening remarks that the capex for the financial year has been 130 billion. 10:16 10 minutes, 16 seconds it is meaningfully below the uh guidance that you had given to us in November in Odisa which was 250 billion rupees. So 10:25 10 minutes, 25 seconds what really uh led to that guidance with 4 months remaining in the fiscal uh 10:32 10 minutes, 32 seconds seeing such a sharp uh decline and what is your guidance realistic guidance for 10:39 10 minutes, 39 seconds uh FY27 and what will it comprise in terms of uh uh the end uh projects that's my first 10:48 10 minutes, 48 seconds question yeah sumit so uh I agree that our 10:55 10 minutes, 55 seconds guidance was I don't think 25,000 KSE but it was I I think about 20 22,000 11:04 11 minutes, 4 seconds uh we have fallen short because some of the projects that we were planning to execute in the last quarter uh could not 11:12 11 minutes, 12 seconds happen and you know these projects are typically relating to the large utility scale projects solar projects or wind 11:21 11 minutes, 21 seconds projects or are the transmission line project. Uh many of the places the right of way got delayed. Many of the places 11:31 11 minutes, 31 seconds the transmission system was to be done by someone else under the TBCB. Uh we 11:38 11 minutes, 38 seconds were supposed to use that transmission system for evacuating that got delayed and you have seen there have been large 11:45 11 minutes, 45 seconds number of reports of many TBC projects uh especially ISTS projects getting 11:51 11 minutes, 51 seconds delayed. uh we are now in this quarter trying to complete some of the projects around 600 megawatt of large utility 12:00 12 minutes scale. Similarly uh in the pipeline are some of the uh the transmission projects that we are executing uh as the RO 12:10 12 minutes, 10 seconds issues are resolved. So these are not that these will not come it's just that the phasing has got impacted and those 12:19 12 minutes, 19 seconds which we missed out in the last year we will complete all them all of them in this financial year. So that's why our 12:27 12 minutes, 27 seconds target of yearly investment continues to be the same and uh there may be certain deferment by a quarter or two but otherwise we are very much on track. 12:39 12 minutes, 39 seconds Sure. Now the I was referring to the the slide in your presentation which shows 12:46 12 minutes, 46 seconds 25,000 crores of capex. Uh uh so the second question is on the uh Delhi 12:53 12 minutes, 53 seconds distribution business where uh you know in the last two quarters uh there have been uh 13:01 13 minutes, 1 second regulatory favorable uh prior period regulatory orders. uh the quantum was 13:09 13 minutes, 9 seconds 4.6 billion rupees in Q3. It was 3.2 billion rupees in Q4 at the AIDA level. 13:16 13 minutes, 16 seconds Uh and the profit level uh positive impacts have also been shown. So can you 13:22 13 minutes, 22 seconds uh uh uh you know can Mr. Sanjiv clarify what is the entire benefit that you have taken because of prior period regulatory 13:30 13 minutes, 30 seconds orders at the beta and profit level in FI26 and FI25. How much is expected uh you know or uh it is very difficult to 13:38 13 minutes, 38 seconds predict but what sort of claims do you think are rightfully yours which are yet to materialize because these are 13:46 13 minutes, 46 seconds meaningful deltas in the quarterly results. So let us say for uh FI27 you know uh uh is there any expectation that 13:55 13 minutes, 55 seconds we should have or we should budget for a decline in reported numbers for Delhi distribution. 14:01 14 minutes, 1 second Yeah. So I think what you're saying is relevant but is uh little context to that uh the good part is when you 14:10 14 minutes, 10 seconds whenever you see the regulatory upside uh those are pertaining to matters from a few years back you know either those 14:17 14 minutes, 17 seconds regulatory approvals were denied or or deferred. Uh so as a result you know we're very happy that many of those past regulatory 14:25 14 minutes, 25 seconds clearances are now coming in. Uh and this is not the first time that we are getting this clearances. This happens every year. In fact, if you look at F25, 14:33 14 minutes, 33 seconds we had about 333 kores of of regulatory uh you know approvals coming in this year as you rightly picked up 7883 14:42 14 minutes, 42 seconds crores uh uh is reflected. Next year too we will have something but to quantify at this stage it may be very very difficult uh because they have a 14:50 14 minutes, 50 seconds pipeline of regulatory asset that we kind of contesting and and discussing and and you know as you're aware it's very difficult to predict uh an outcome 15:00 15 minutes you know or regulatory settlement or regulatory clearances but yes we would expect some amount to materialize now whether that is low or higher sitting 15:08 15 minutes, 8 seconds today is very difficult but my chance is and when every quarter passes on we should be able to give you a better understanding on Sure. 15:16 15 minutes, 16 seconds Just one last bookkeeping question. What is the IP capacity that you expect to add in FI27? What will be the phasing of 15:22 15 minutes, 22 seconds that capacity? And would it be right to expect that for the solar component there is the module and cell would be supplied from Tata Power's own manufacturing unit? 15:32 15 minutes, 32 seconds Yes. 15:34 15 minutes, 34 seconds The second question is very clear forward that that's the whole purpose why we have put up the cellar module manufacturing and I think that's they're 15:41 15 minutes, 41 seconds kind of quite integrated uh that we are able to kind of have the entire lineup of sales modules uh blockchain for all 15:49 15 minutes, 49 seconds the pipeline and as you can see we have about 5 gaw of pipeline as we speak and a lot of things will start utilizing this time around from quarter one onward 15:58 15 minutes, 58 seconds so from a capex traing point of view I think we'll see in the current year a lot of consistency coming Also Sumit 16:06 16 minutes, 6 seconds last year we did a huge amount of third party projects. 16:11 16 minutes, 11 seconds This year we don't have third party. So everything that we will do will be in our last year we did about 2,500 16:19 16 minutes, 19 seconds megawatt of total project implementation. So you can imagine that 2,500 will be virtually internal that we 16:27 16 minutes, 27 seconds will carry out and maybe even little more than that. So if you deliver for instance 2 G of solar project then the 16:34 16 minutes, 34 seconds uh requirement of module cell will be 2 into 1.4 the multiplying factor about 2.8 date out of your capacity will go 16:41 16 minutes, 41 seconds into in this example it will go into your own uh uh uh capacity addition. Is that the right understanding? 16:50 16 minutes, 50 seconds Absolutely. And then if we have rooftops so whatever we are going to manufacture we are going to meet our own requirements. 16:59 16 minutes, 59 seconds Sure. So the intra segment elimination should basically reflect that uh in FI27. 17:07 17 minutes, 7 seconds Yes. Yes. 17:09 17 minutes, 9 seconds largely around the RP compliance in terms of margins but are very very consistent. So that should not be posing a problem for you to kind of do do your 17:17 17 minutes, 17 seconds modeling as well but I think you kind of alluded to the 2 gawatt of commission next year which is kind of ballpark number that we also looking at and if 17:25 17 minutes, 25 seconds everything goes well maybe it could be slightly higher than that no but everything is not solar so solar and wind combined yeah so solar and wind combined is there 17:34 17 minutes, 34 seconds so solar would be about 1.5 to 1.8 it will not be 2.5. Got it. 17:41 17 minutes, 41 seconds Thank you so much and thanks for the wonderful disclosure. Thank you once again. 17:48 17 minutes, 48 seconds Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all the participants in the conference, we 17:57 17 minutes, 57 seconds please limit yourselves to two questions each per participant and you may rejoin the queue for any follow-up questions. 18:03 18 minutes, 3 seconds The next question comes from the line of Punati from HSBC. Please go ahead. 18:10 18 minutes, 10 seconds Yeah, thank you so much and and you know congrats on good performance. My first question is on OISA. You know you've been giving phenomenal performance you 18:19 18 minutes, 19 seconds know year after year. Do you still see room for more efficiencies or should we sort of pencil in future growth more from regulated equity growth only? 18:30 18 minutes, 30 seconds you'll get to see much better than this uh in the next uh financial year and I think next financial year possibly will 18:38 18 minutes, 38 seconds be the best year for this discount because many of the initiatives that we had taken in last few years have started 18:47 18 minutes, 47 seconds showing results. Some of the initiatives were taken last year and the impact of it you will see in the uh this year. So 18:55 18 minutes, 55 seconds I think uh visa performance next year should possibly peak in terms 19:02 19 minutes, 2 seconds of the type of results you okay uh that's very uh interesting and 19:11 19 minutes, 11 seconds second is on the hydro side you started taking you know large exposures to hydro now uh and is the PPA already in place 19:20 19 minutes, 20 seconds or would you be looking to sign PP in sometime it is In advanced stage of approval as 19:27 19 minutes, 27 seconds you know that uh while the PPA is agreed it has to go through a regulatory approval process and uh that process is 19:36 19 minutes, 36 seconds on the final stages and we do expect next few months that approval will come in. 19:44 19 minutes, 44 seconds And lastly if you can comment on the regulatory asset windown and Delhi disarm. Supreme Court had indicated an intention to wind this down. any progress there? 19:54 19 minutes, 54 seconds Yeah. So both the Supreme Court and API are monitoring that and uh the 20:02 20 minutes, 2 seconds regulatory commission has promised that this will be amortized over seven over 6 years up to 2032 20:09 20 minutes, 9 seconds and uh we are closely monitoring that they have already given an affidavit under which they will amotize it and we 20:18 20 minutes, 18 seconds expect that it will get implemented as per the as per the affidavit that they have provided. 20:25 20 minutes, 25 seconds Understood. That's thank you so much and all the best. 20:30 20 minutes, 30 seconds Thank you. Your next question comes from the line of Apura Bahadu from IFL Capital. Please go ahead. 20:38 20 minutes, 38 seconds Thank you. Thank you uh for the opportunity sir. Uh can you provide some color on the Gujarat FTPA? 20:47 20 minutes, 47 seconds uh what is the agreement whether uh if you're sacrificing any profit sharing sharing any profitability on code what's 20:54 20 minutes, 54 seconds the quantum so Gujarat SPA details we have already shared and since it is also under 21:04 21 minutes, 4 seconds discussion with the other four procurers more details finally what is agreed we'll share once uh everyone signs on 21:13 21 minutes, 13 seconds the dotted Okay. Sure. Uh and and in your uh disclosure for renewable business, uh we 21:22 21 minutes, 22 seconds see that the PLF for solar is lower due to lower resource availability and also there's there's a comment on 21:28 21 minutes, 28 seconds curtailment. Uh can you quantify the impact of curtailment in FI26 and your expectation in FI27? 21:40 21 minutes, 40 seconds So the curtailment are happening in few places that also is not on a continuous basis. 21:49 21 minutes, 49 seconds So very difficult for us to say that how much of curtailment will happen. Also some of the lines have been 21:57 21 minutes, 57 seconds commissioned. So it is not that there's full curtailment part of uh so in some cases at least 60% they have allowed to 22:06 22 minutes, 6 seconds evacuate in some places they have allowed 80%. In some places it is at 20 25%. So so it's a moving uh target which 22:16 22 minutes, 16 seconds is there and uh we continue to work with the uh transmission companies and CPUs 22:23 22 minutes, 23 seconds to ensure that the curtailment is reduced and uh we are able to evacuate all the power. In cases where we have 22:32 22 minutes, 32 seconds have we have the GNA and curtailment takes place there of course we are reimbured uh the cost on these supply 22:41 22 minutes, 41 seconds uh and for for next year the FY27 the target we have for adding solar capacity uh do we have permanent PMA for all 22:51 22 minutes, 51 seconds those substations or some of it is still on temporary DNA? 22:56 22 minutes, 56 seconds No, so now we are being extra careful and that is why uh some of our capex which we had planned last year got 23:03 23 minutes, 3 seconds deferred because we do not want to set up the plant and and be on temporary GNA. So we have been very cautious now 23:11 23 minutes, 11 seconds and we are only commissioning or completing the project if we have certaintity on the transmission line and 23:19 23 minutes, 19 seconds the permanent G happening. So so that action has been taken now. 23:26 23 minutes, 26 seconds Makes sense, sir. Uh sir, lastly, if you can provide some color on the Indonesian coal prices, especially after the West 23:34 23 minutes, 34 seconds Asian war, uh the index is backward looking. So, so what's your uh take over there, how the prices should move this 23:41 23 minutes, 41 seconds year as well as there was some news flow around potential tax imposition by the Indonesian government on on coal mining. 23:49 23 minutes, 49 seconds So, if we can have some view on that as well, it would be very helpful. 23:54 23 minutes, 54 seconds One is on the coal prices that there has not been too much of movement and uh we 24:00 24 minutes expect that prices will be within plus - 5% in that 24:07 24 minutes, 7 seconds PJ we're not expecting too much of the second is that 24:16 24 minutes, 16 seconds we are hearing that that there will be some more taxes that will be imposed 24:23 24 minutes, 23 seconds on export of coal but uh this has been under discussion for last many months. 24:29 24 minutes, 29 seconds So let's see what eventually gets decided. 24:34 24 minutes, 34 seconds We have shared some details on on the thermal coal prices also including Indonesian coal prices and slide 24 24:42 24 minutes, 42 seconds analyst presentation which is uploaded you can have a look at that if you want virtually for Indonesian code. Sure. 24:50 24 minutes, 50 seconds Sure. Sir, so lastly if I may just squeeze in one more uh in your cash flow statement there's an item of movement in balance related to service concession 24:59 24 minutes, 59 seconds agreement. Uh so what is this uh regarding because we see uh uh it is a it has been a drag on cash flow for this 25:07 25 minutes, 7 seconds year related to SCA TBC project 25:15 25 minutes, 15 seconds to TBTV project it is there in the working because the revenues are not in recognized 25:24 25 minutes, 24 seconds capex spend on the service conditional arrangement it's one time of capex only which is shown in the capex in the presentation of US presentation. 25:36 25 minutes, 36 seconds Okay. Okay. ID it should be added to capex. Understood. Okay. 25:52 25 minutes, 52 seconds Uh no I'm good. Thank you. I'll get back in the queue. 25:55 25 minutes, 55 seconds Thank you. The next question comes from the line of J from having a spark. Go ahead. 26:03 26 minutes, 3 seconds Thank you. Uh thank you for the opportunity sir. So my first question is on the mudra plan. Uh is the entire plant operating under the supplementary 26:12 26 minutes, 12 seconds PP terms or is it only the Gujarat uh Gujarat part? Uh is the rest under operating under section 11? 26:20 26 minutes, 20 seconds This whole plant is operating all the five units. uh the section 11 is to facilitate the operation of the plan and 26:30 26 minutes, 30 seconds give time to the procurers to get their necessary approval. The billing that is being done is being done as per the SPS 26:39 26 minutes, 39 seconds as per the overall understanding that has been reached with them as well as with ministry of health. 26:47 26 minutes, 47 seconds Understood. Uh so my uh next question is uh on the key growth driver uh which 26:53 26 minutes, 53 seconds segments do you see to contribute most uh in the coming next two years uh for a 27:00 27 minutes rapida growth key growth drivers for the next two years? 27:07 27 minutes, 7 seconds Next two years I have explained to you all these businesses will give good profit good returns. So generation, 27:16 27 minutes, 16 seconds transmission, distribution, renewable and renewable manufacturing, rooftop, utility skills. So each of these 27:25 27 minutes, 25 seconds businesses are doing very good. We had a drag on Mundra that also is behind us. 27:31 27 minutes, 31 seconds So you will see excellent performance going forward. 27:37 27 minutes, 37 seconds Understood. Uh I that's it for now. I'll get back to the Thank you. Thank you. 27:45 27 minutes, 45 seconds Your next question comes from the line of Syri from Ambit Capital. Please go ahead. Hi, thank you. 27:53 27 minutes, 53 seconds First question on um the supplementary PPA and the coal mines in the past um I think we were meant to understand that 28:00 28 minutes um once you sign the supplementary PPA then u maybe you look to monetize the cold assets um is that thought process 28:08 28 minutes, 8 seconds still intact then let's say if you sign the supplementary PPA in the next few months with other states would you look 28:15 28 minutes, 15 seconds to start the sales process uh sometime this year I'm just trying to understand where you are on the monetization 28:22 28 minutes, 22 seconds It also depends what sort of opportunity is there, what sort of valuation we get. 28:28 28 minutes, 28 seconds If the whole market is good and we get a good valuation, we can always look at that. But it's little premature. Let us 28:35 28 minutes, 35 seconds first sign with everyone and then see how the market is there and at the right time we'll take the decision which is benefiting us. 28:47 28 minutes, 47 seconds Okay. Fair enough. We have said just a clarification on the re uh captive use of modules and cell that you mentioned 28:55 28 minutes, 55 seconds as per the order uh any new tender after 1 September the developers have to use 29:02 29 minutes, 2 seconds uh domestic uh sale but there is no mandate before that. So given the tariffs uh that you bid for don't 29:10 29 minutes, 10 seconds reflect that u uh that domestics and deployment why would you look to use domestics 10 in your FI27 29:20 29 minutes, 20 seconds commissioning u given I I believe this year you would be commissioning projects that were awarded before uh September 25 29:27 29 minutes, 27 seconds just trying to understand there and secondly would be solar rooftop so you uh executed 1.7 gawatt which means 29:35 29 minutes, 35 seconds almost 20% market share. Um is that something um you are looking at in terms 29:41 29 minutes, 41 seconds of um FI27 also that market share has um remained intact despite competition. 29:49 29 minutes, 49 seconds We're just trying to understand um what is the opportunity you're looking at next year and what's the market share you targeting? 29:56 29 minutes, 56 seconds We are definitely looking to enhance our market share and our target is that in 30:02 30 minutes, 2 seconds next three years we will 20%. Uh and having said that uh we expect our 30:11 30 minutes, 11 seconds rooftop business so you have seen last year it has grown by 100%. 30:18 30 minutes, 18 seconds And I definitely expect in this year also uh it will grow substantially more than what uh uh is expected from the 30:27 30 minutes, 27 seconds market at this time. So I I do expect that in the 27 the rooftop market uh the 30:38 30 minutes, 38 seconds rooftop business will grow if not by 100% at least by 50 60%. So you will see exceedingly good performance from 30:46 30 minutes, 46 seconds rooftop business going forward. I also expect that uh 30:54 30 minutes, 54 seconds most of our rooftop and you know that uh for rooftop if you have to get the government uh subsidy then it has to use 31:03 31 minutes, 3 seconds Indianmade pendant module. So that will be catered from our existing manufacturing plant. uh also in uh going 31:13 31 minutes, 13 seconds forward effectively 1st June 2026 uh you have to use 31:20 31 minutes, 20 seconds only Indian made cell and many of the projects are not grandfathered so some of the projects which will get 31:28 31 minutes, 28 seconds implemented in by 27 will require Indian made cells and models so I think our 31:35 31 minutes, 35 seconds manufacturing plant is very well positioned to cater to large utility scale as well as rooftops. 31:44 31 minutes, 44 seconds Okay. Thank you so much. Thank you so much. 31:48 31 minutes, 48 seconds Thank you. The next question comes from the line of ATI from JP Morgan. Please go ahead. 31:55 31 minutes, 55 seconds Yeah. So I miss the uh capex 32:06 32 minutes, 6 seconds 27 in the same range it's about 25,000 32:13 32 minutes, 13 seconds that is what we are expecting uh as I mentioned to you those projects which we missed out last year we'll 32:21 32 minutes, 21 seconds ensure that those get completed in this financial Yes. And uh and these are 32:28 32 minutes, 28 seconds range of projects. These are not just a large utility scale but it is also including uh the distribution projects 32:36 32 minutes, 36 seconds and the transmission projects and the hydro projects we have working on. 32:42 32 minutes, 42 seconds Okay. Thank you. Thank you. 32:49 32 minutes, 49 seconds The next question comes from the line of Mohit Kumar from ICICI securities. Please go ahead. 32:54 32 minutes, 54 seconds Yeah, good evening and thanks for the opportunity. Uh my first question on the on the note number five of the consolidated P&L. 33:06 33 minutes, 6 seconds Uh there is a model mention of 250 cr defer tax assets. Can you clarify whether we need to adjust or increase 33:13 33 minutes, 13 seconds the taxes by 250 cr to arrive at the profit for the quarter? 33:20 33 minutes, 20 seconds So uh as you're aware this is a deferred tax non-cash. So basically given our future profitability projection uh so I 33:28 33 minutes, 28 seconds think I will give you some genesis as to where it is coming from. Uh we had of course lot of carry forward losses and of course when you look at the 33:36 33 minutes, 36 seconds standalone books everything has to be adjusted again the standalone to fully organize this. uh we have better visibility of profits in the subsequent 33:44 33 minutes, 44 seconds years now and we feel that some of the carry power losses can now be utilized uh within the time frame and as such from a strategy processes we have to 33:52 33 minutes, 52 seconds recognize the different tax on the books which you have done in quarter 4 now so this has impacted our consult also 33:59 33 minutes, 59 seconds right console profit positive question uh my second question is the Tata 34:07 34 minutes, 7 seconds projects uh it has been making losses for it was making losses prior to FI24 24 I guess and 24 was the first year I 34:16 34 minutes, 16 seconds think where we started making profit F26 again I think there's a loss F25 there loss F26 again there loss what is the 34:24 34 minutes, 24 seconds outlook on the same for as they enter F27 F28 do you think the losses will get restricted now 34:32 34 minutes, 32 seconds what has happened in Tata projects is that they had legacy projects such as 34:38 34 minutes, 38 seconds the dedicated fate corridor project from like 34:44 34 minutes, 44 seconds refining project in bar and some other projects which are there. Uh fortunately all those projects have now been completed and very little of it is left. 34:55 34 minutes, 55 seconds Uh and we expect that uh those legacy projects impact will be very minimal 35:02 35 minutes, 2 seconds going forward. uh the subsequent projects that Tata projects have got have good margins and I do expect that 35:11 35 minutes, 11 seconds uh in FY27 it will mean lack and it will 35:17 35 minutes, 17 seconds start making profit from FY27 one more question if I can excuse it we haven't seen acquisition to under 35:25 35 minutes, 25 seconds development portfolio for a long time how are you thinking about breeding for new assets for renewables given 35:32 35 minutes, 32 seconds of course the structural headwinds right now. Do you still want to remand the pause or do you think we can start adding to the portfolio from your 52? 35:42 35 minutes, 42 seconds Yeah. So as we mentioned to you that many of the places uh there were two challenges. One was the transmission 35:51 35 minutes, 51 seconds line have got delayed and there's no point in taking a project and not able to implement it because the transmission 35:58 35 minutes, 58 seconds system or the power evacuation system is not ready. 36:02 36 minutes, 2 seconds Secondly, we have now come up with the unique solutions where we can offer 36:09 36 minutes, 9 seconds renewable projects along with the storage project, the pump hydro project and uh going forward we are looking for 36:16 36 minutes, 16 seconds that sort of arrangement. These type of arrangements are not only with utilities but also with large CNI customers, seal 36:24 36 minutes, 24 seconds companies. uh we are in discussions with Tak and some of the other large data centers which are coming up and we do 36:32 36 minutes, 32 seconds expect that going forward we will not do pure solar or pure wind but it will be hybrid with storage and those will be 36:41 36 minutes, 41 seconds much attractive in terms of the returns compared to uh the type of projects which have been paid out in last few years. 36:51 36 minutes, 51 seconds Understood. Thank you. 36:56 36 minutes, 56 seconds Thank you. The next question comes from PL Capital. Please go ahead. 37:12 37 minutes, 12 seconds Yeah. Uh sir uh in terms of commissioning you have mentioned 37:22 37 minutes, 22 seconds Yeah, sorry. So, in terms of commissioning, I think you mentioned uh we'll be adding 2 and a half gawatt this year and 2 and a half similar number 37:29 37 minutes, 29 seconds next year and further like you know 1.5 to 1.7 g solar but if I look at the pipeline then solar number is pretty 37:38 37 minutes, 38 seconds small at 600 odd megawatt only. So is this I mean like are we adding FDRE or uh complex FDR? I think if you can give 37:46 37 minutes, 46 seconds color maybe a break up of two and a half between these. 37:51 37 minutes, 51 seconds So those details are there is slide it is there 70 37:59 37 minutes, 59 seconds 77 in slide seven we have given the breakup and those are the type of projects that 38:07 38 minutes, 7 seconds you would see which will be a combination of solar and wind. I agree that there are large number of wind 38:15 38 minutes, 15 seconds projects which are there and for that we have already tied up all the wind turbines which have to go and we are 38:23 38 minutes, 23 seconds going to implement all those wind projects apart from the solar project but these are all hybrid project these are not standalone solar or standalone 38:32 38 minutes, 32 seconds but these are all part of the hybrid projects that we are in case you are only to looking at your 38:40 38 minutes, 40 seconds solar you can also look and hybrid they will also have component of solar as well. 38:45 38 minutes, 45 seconds Okay. Okay. But is is it fair to say that a large part or maybe like 1.6 1.7 38:51 38 minutes, 51 seconds gawatt will be FDR in this commission combination of all of this but larger chunk towards hybrid and FDR. 39:02 39 minutes, 2 seconds Okay. Okay. Got it. And then u uh in terms of uh commissioning I think last year for our business we have added the one or gawatt and now we are seeing like 39:11 39 minutes, 11 seconds you know probably a pickup uh for us. So I mean is it fair to say probably the issues on transmission and other uh 39:18 39 minutes, 18 seconds infra issues that are kind of behind us and uh probably things are much better. 39:25 39 minutes, 25 seconds Not everything is behind us but yes some of the areas where it had got delayed they are now coming up or those projects 39:34 39 minutes, 34 seconds are coming up and we should be in a position to match our project implementation with the power evacuation timeline. 39:42 39 minutes, 42 seconds Okay. And maybe one last thing uh anything that uh we can share that that we are doing uh at data power for uh 39:50 39 minutes, 50 seconds nuclear as such and any anything that you're seeing any traction that is happening on the ground. Uh that's my last question sir. 39:58 39 minutes, 58 seconds So on nuclear we have shared with you that uh we have working with three state governments. We have identified the 40:06 40 minutes, 6 seconds land. Uh we have also taken up for water allocation for which necessary approvals have been given to us and from our 40:15 40 minutes, 15 seconds pipeline. Uh we are also carrying out detailed geotechnical studies of each of these and then nuclear plants require different types of geotechnical studies. 40:25 40 minutes, 25 seconds Those are under progress. Uh we are now doing detailed DPR of projects to be set 40:33 40 minutes, 33 seconds up. Uh and this will be done in collaboration with NP3il. 40:38 40 minutes, 38 seconds Uh these are small modular 2 into 220 megawatt plants and we do expect that some of them uh especially some of the 40:47 40 minutes, 47 seconds states we will be able to do in the 6 months time and uh we are also 40:55 40 minutes, 55 seconds parally working on some of the other aspects which needs to be finalized with nuclear power and so so quite 41:05 41 minutes, 5 seconds detailed discussion but it will take some more time for us to finalize the arrangement. 41:11 41 minutes, 11 seconds Okay. Okay. When you say I mean uh DPR so probably in terms of megawatt and all it's still not uh it's still kind of wip 41:18 41 minutes, 18 seconds as of now. That is I I told you 2 into 220 megawatt 44. 41:24 41 minutes, 24 seconds Okay. That is okay. Okay. Fine. Yeah. I think uh thanks and uh for answering all the questions. Thank you. 41:33 41 minutes, 33 seconds Thank you. 41:34 41 minutes, 34 seconds The next question comes from the line of Nikana from Bernstein. Please go ahead. Hi, thank you. I had just one question. 41:42 41 minutes, 42 seconds Uh I know the company has taken a stance to not add any new coal based generation capacity. Uh wanted to check if there's 41:49 41 minutes, 49 seconds any change in that you given so many states are coming up with uh coal fired power plant. 41:56 41 minutes, 56 seconds So we are uh examining that if there is a good opportunity and we find that the 42:03 42 minutes, 3 seconds is attractive and it's a bankable PPA we'll definitely look at those 42:12 42 minutes, 12 seconds understood ask one more question uh I think in an earlier question on the use of domestic the sales you are producing uh I understand the use for the rooftop 42:20 42 minutes, 20 seconds solar segment uh but on the utility scale side most of your tenders are the 2025 date. So I believe they should not be needing DR sales. 42:31 42 minutes, 31 seconds Uh so anything I'm missing there? 42:35 42 minutes, 35 seconds I I think some of them do require domestic. So we are working on that. Uh 42:42 42 minutes, 42 seconds because they will bid under those conditions that you will be using domestic uh cell and module. Uh so uh out of the 42:52 42 minutes, 52 seconds projects that we have we find that majority are with domestic bodies. 43:00 43 minutes Okay. Understood. Thank you. Those are my questions. 43:05 43 minutes, 5 seconds Thank you. Your next question comes from the line of Rajesh Majunar from 361 Capital. Please go ahead. 43:13 43 minutes, 13 seconds Yeah, good evening sir and thanks for the opportunity. So I had a couple of questions on your slide seven. The current operational capacity is 16.7 GAW 43:22 43 minutes, 22 seconds and including pipeline is 26.3 which means an addition of 10 GW. So is this the FY30 figure 26.3 or how should we 43:30 43 minutes, 30 seconds take this figure? That was the first question. 43:34 43 minutes, 34 seconds This would be I would say FY current pipeline which will go. Yeah. So this is the current pipeline. 43:41 43 minutes, 41 seconds Uh so this includes the 2,800 megawatt pumped hydro at Chiro where the 43:48 43 minutes, 48 seconds work will start in this financial year and all the existing that means the Bhutan 43:56 43 minutes, 56 seconds hydro 600 plus 1125 where we have already signed the financing arrangement 44:04 44 minutes, 4 seconds with World Bank. So, so this takes care of all uh some of them will come up in 44:11 44 minutes, 11 seconds 203132 that is the now 1125 Bhutan project will come in that year some will 44:18 44 minutes, 18 seconds come in 3031 so so so but of course all the solar and wind 44:24 44 minutes, 24 seconds projects will come by 2030 and so your capex figure of 25,000 crores if you take an addition of 2 44:33 44 minutes, 33 seconds gawatt perm then the capex is roughly about on the higher side maybe 12 to 15,000 crores. Does this mean that 10,000 crores of regulated capex will happen in FY27? 44:45 44 minutes, 45 seconds No, I think it's not about regulated capex but a combination of all the capexes that Dr. Sab spoke about. Of course that.5 GB of pure only solar and 44:54 44 minutes, 54 seconds wind. Uh that as you rightly said that would be 15,000 but then you have capex coming up in in farm storage capex 45:01 45 minutes, 1 second coming up in pure hydro. uh so all a combination of all of this transmission in transmission as well. So I think a 45:09 45 minutes, 9 seconds combination of all of this next year is 25,000 cruses probably going forward also we'll have a similar kind of capital outlay 45:17 45 minutes, 17 seconds for FI28 as well you're saying okay and 45:25 45 minutes, 25 seconds my last question is uh we have we have signed the SPA with uh Gujarat of course but now if by the there is an export 45:33 45 minutes, 33 seconds duty or royalty which comes from Indonesia then how does that work with the SPA and how does impact the negotiations with the other fate going forward. 45:42 45 minutes, 42 seconds Coal cost is a pass through. So whatever is the cost of coal will be paid for. So that's the type of arrangement that you 45:50 45 minutes, 50 seconds have including a major royalty change. 45:55 45 minutes, 55 seconds When it's a whole cost FOB cost it has to be pass whatever is included in that. 46:07 46 minutes, 7 seconds Thank you. The next question comes from the line of Ano Japati from Investec. Please go ahead. 46:15 46 minutes, 15 seconds Yeah. Hi sir, thanks for the opportunity sir. Need one uh clarification on how should we read uh slide seven and slide 46:23 46 minutes, 23 seconds 32 together. uh because slide seven where we have highlighted 5 gawatt of renewable capacity of which I guess 1 46:30 46 minutes, 30 seconds gawatt is a combination of plane wind and solar capacity whereas we have 4 gawatt a combination of I guess two and 46:37 46 minutes, 37 seconds a half of fd and rest uh the hybrid project and the rtc but if I see your fi32 slides u where we have highlighted 46:46 46 minutes, 46 seconds the timeline of uh the fd and hybrid being getting commissioned the contracted capacity comes only to the 46:52 46 minutes, 52 seconds tune of 1200 megawatt So does the 500,000 gawatt of renewable capacity is the actual installed capacity or the 47:01 47 minutes, 1 second contracted installed capacity because you know to the prior question you have mentioned that we'll be adding 2.5 GB each of uh IP projects. So this 47:10 47 minutes, 10 seconds is the contracted 2.5 or the actual capacity. 47:15 47 minutes, 15 seconds This is the installed capacity contracted contracted 47:22 47 minutes, 22 seconds for capacity given in the third row. 47:34 47 minutes, 34 seconds Sorry. 47:36 47 minutes, 36 seconds So on flight 32 on we have given the installed capacity and the heading is the contracted capacity. So contracted will be lowered than the installed. When we give the guidance we give it on the install. 47:47 47 minutes, 47 seconds Exactly. So until when you uh you know when we have mentioned that 4 gawatt of hybrid and fd. So does that translate to 47:54 47 minutes, 54 seconds around 1200 megatt of contracted capacity? Is my uh understanding correct or we are there are few more capacity for which the details are out here 48:03 48 minutes, 3 seconds because uh the PP or the approval are yet to be received right back in that is what 48:13 48 minutes, 13 seconds okay okay and my second question belongs to your Orisa projects you know again to priority you mentioned that next year 48:21 48 minutes, 21 seconds probably we'll be picking out in terms of the performance so apart from northern circle I believe uh you know other areas still hovers in the range of 48:29 48 minutes, 29 seconds 18% kind of an ATNC. So what kind of uh loss reduction trajectory we can assume for uh the other three circles and to 48:38 48 minutes, 38 seconds what level it can go I mean like north Orisa is already at around 10% whereas others are already at 18. So to what 48:46 48 minutes, 46 seconds level we can expect the laws to further go down and by what timeline sir? 48:51 48 minutes, 51 seconds So there is a trajectory that has been agreed with the visa regulator and based 48:58 48 minutes, 58 seconds on that we do expect that all of them will come in 12 to 13% range in next four to five 49:07 49 minutes, 7 seconds years. So uh you can expect that you will reduce about 2% every year in that sort of deduction will be a ballpark. 49:19 49 minutes, 19 seconds Okay. Uh you mentioned our four to five years right sir? Yeah. Okay. Okay. Thank you sir. That's it. 49:27 49 minutes, 27 seconds Thanks for the opportunity. 49:30 49 minutes, 30 seconds Thank you. The next followup question comes from the line of bahagu from I think captain. Please go ahead. Uh thank you sir. I had a bookkeeping question. 49:41 49 minutes, 41 seconds Uh in your uh Q4 profitability for uh IEL uh we see an increase of almost 63 49:50 49 minutes, 50 seconds kores and then similarly for Mumbai transmission as well of around 50 kores. 49:55 49 minutes, 55 seconds Uh given the nature regulatory nature of these businesses uh is it safe to assume that this there was a significant asset 50:03 50 minutes, 3 seconds capitalization or are there any one-offs? 50:06 50 minutes, 6 seconds This is more the deferred tax part right one of the plants were commissioned. 50:14 50 minutes, 14 seconds Okay. So it's an asset which has been added because of that in Yeah. And then transition. 50:22 50 minutes, 22 seconds Okay. 50:28 50 minutes, 28 seconds So this this increase is recurring for transmission business. Sure. 50:33 50 minutes, 33 seconds No, that depends upon the asset capitalization timing and the different type that is created because of that. So yeah, I think it it's not a yearly 50:40 50 minutes, 40 seconds phenomenon but depends upon the asset capitalization and the profitability of that particular plant. Okay. And same thing in as well. 50:50 50 minutes, 50 seconds I'm talking about Okay. Okay. And the Mumbai transmission is based on capex only. 50:58 50 minutes, 58 seconds Yeah. That is also capex. that is based on capex or capex it is recurring okay thank you so much Mumbai 51:06 51 minutes, 6 seconds transmission adds every year 1,000 K of capex so on a 7030 you'll have return on 51:16 51 minutes, 16 seconds equity on 30% so that that's what you need to consider plus certain onm benefit 51:24 51 minutes, 24 seconds very clear thank you thank you ladies Ladies and gentlemen, we will take that as our last question 51:32 51 minutes, 32 seconds for today. I now hand the conference over to the management for closing comments. 51:38 51 minutes, 38 seconds Thank you everyone. And if you have any other questions, please connect with Katu and 51:46 51 minutes, 46 seconds we'll be more than happy to to respond to them. Also, if you have any suggestions on improving the quality of 51:53 51 minutes, 53 seconds presentation or any more uh details are required, please reach out. We'll try to make it more 52:00 52 minutes um analyst friendly in terms of giving you more information and data. 52:06 52 minutes, 6 seconds Thank you. Thank you to all of you and take care. 52:12 52 minutes, 12 seconds Thank you on behalf of data power. That concludes this conference. Thank you everyone for joining us and you may now disconnect your lines.