Torrent Power Limited — Q4 FY26

Torrent Power Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=TodBfnXEuVc Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Torrent Power Limited Q4 FI26 earnings conference call. From the 0:10 10 seconds management team, we have with us Mr. Sor Mashraala, executive director and CFO, Mr. Rishi Sha, GM Finance, and Mr. J. 0:21 21 seconds Praash Kwani, AGM Finance. As a reminder, all participant lines will be in the listenon mode and there will be 0:29 29 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an 0:37 37 seconds operator by pressing star zero on your touchdown phone. Please note that this conference is being recorded. 0:46 46 seconds And now in the conference to Mr. Shah Mashraala. Thank you and over to you sir. Uh thank you so much. Good morning 0:55 55 seconds to all of you and thank you for joining earning calls of torrent power for Q4 FI26. 1:02 1 minute, 2 seconds First I will take you the performance of the quarter after which we would welcome questions. We'll explain the performance 1:08 1 minute, 8 seconds of the company at PBT first and then we'll take you through the tax expenses separately. 1:17 1 minute, 17 seconds Reported PBD for the quarter stood at 547 crores as compared to 619 crores in the corresponding quarter of last year. 1:24 1 minute, 24 seconds A reduction of 72 crores. 1:27 1 minute, 27 seconds PBD for the current quarter includes non recurring provisions of 171 crores arising due to catching up for power 1:35 1 minute, 35 seconds costs for ownus power projects in in the year FI 2425 to a quarter. 1:43 1 minute, 43 seconds A similar restriction has been imposed in earlier years as well which was contested by us and subsequently approved in our favor. As a result, a 1:51 1 minute, 51 seconds credit of 273 crores was recognized in P&L in the previous quarter of the current year. 1:57 1 minute, 57 seconds Considering students provision has been recognized in the current quarter based on the past decided we are reasonably 2:04 2 minutes, 4 seconds certain that the current matter will be also approved in our favor. 2:11 2 minutes, 11 seconds Adjust for this one of PBD for the quarter student 718 crores as compared to 619 crores in the comparable quarter 2:18 2 minutes, 18 seconds of last year. An increase of 99 crores that is 16% on adjusted release. 2:26 2 minutes, 26 seconds Tax expenses were lower during the corresponding quarter of last year due to non-cash reversal of default tax liabilities of 637 crores. Hence the default tax liability is not comparable. 2:39 2 minutes, 39 seconds Business- wise factors contributing the performance are as follows. First, receipt of favorable orders from the regulators approving the carrying cost of previous years of 186 crores. 2:51 2 minutes, 51 seconds Receipt of incentive for installation of solar rooftop in Ahmedabad and Suda by 58 crores. Reduction in TN saving 2:58 2 minutes, 58 seconds license distribution units due to significant reduction in normative parameters by regulators. partially offered by improved option office in 3:06 3 minutes, 6 seconds distribution license distribution franchisee business by 15 crores. 3:12 3 minutes, 12 seconds Additionally, the contribution from the license distribution business was supported by the increase in RO roe and ROCE on account of capitalization of 3:20 3 minutes, 20 seconds assets and higher rate of returns on equity as per the new dive regulations and other incentive increase of 15 15 crores. 3:29 3 minutes, 29 seconds We would like to take with this opportunity to apprise certain pertinent changes in the tariff regulations which respect to allowance of ROE and ROCE on assets capitalized. 3:41 3 minutes, 41 seconds There are two situations. forces for asset capitalized on or after for sep 25 returns are now allowed on a return on 3:50 3 minutes, 50 seconds capital employer basis wherein the underlying return on equity is printed at a base rate of base roe of 13% which 3:57 3 minutes, 57 seconds can go up to 15% based on the achievement of incentive milestone stipulated this is compared 4:04 4 minutes, 4 seconds with the fixed roe of 14% in the previous regime for the asset capitalized prior to first 5 the 4:13 4 minutes, 13 seconds situation is method of allowing of the return on equity on the regulator equity based continuum is under the earlier 4:20 4 minutes, 20 seconds framework. However, regulator has allowed incentive to be approved on this asset also based on achievement of 4:27 4 minutes, 27 seconds incentive milestone which in effect has increased the effective ROE from 14% to 15%. 4:35 4 minutes, 35 seconds It is pertinent to note that the performance based incentive including included within the roe are over and above the incentive which are which were 4:44 4 minutes, 44 seconds available which which were already allowed in the form of saving in controllable expenses. This effectively has probability to include ROE by 1% on 4:53 4 minutes, 53 seconds an annual basis depending on the performance of the performance of the license distribution business. 5:01 5 minutes, 1 second Further the regulatory gap for the company has been reduced by almost 800 crores backed by better operation operational efficiency as well as lower 5:10 5 minutes, 10 seconds power purchase cost with Flepa remains the same as of last year 5:20 5 minutes, 20 seconds contribution from permal generation business adjustable non-recurring items decreased by 90 crores mainly on account of two factors first additional on 5:29 5 minutes, 29 seconds expenses incurred in the quarter on account of schedule maintenance and second reversal of certain provision made during the corresponding quarter of last year under the thermal tax thermal generation segment. 5:40 5 minutes, 40 seconds The third reason contribution from the renewal generation reduced by 20 crores million account of income from 5:48 5 minutes, 48 seconds generation based incentive on account of achievement of saturated threshold timeline allowed for the incentive. 5:56 5 minutes, 56 seconds The other factor contributing to the lower profitability was on account of increase in missionary expenses and deprec depreciation which was on account 6:04 6 minutes, 4 seconds of higher capitalization mean in the renewal segments and increase in finance cost by the higher capitalization and 6:11 6 minutes, 11 seconds relative borrowing. This completes the explanation of the financial performance in the quarter. 6:17 6 minutes, 17 seconds Moving on to the project update. The progressive commission of 367 mega MSDCL project aggregate installed capacity generation capacity of the company stood 6:26 6 minutes, 26 seconds at 5.1 gawatt as on 31st March 26 comprising of 2.7 G of gas 2 G of 6:33 6 minutes, 33 seconds renewables and 62 megawatt of gas capacity. 6:38 6 minutes, 38 seconds Car transmission project got commissioned during the quarter for implementation of 1.6 regard thermal project in MP activities are underway 6:47 6 minutes, 47 seconds wherein following major milestone have been achieved. First a power cell agreement exhibited with MP power management company limited. Second 6:56 6 minutes, 56 seconds letter of award is liter of award issued by bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo bo boiler t t t t t t t t t t t t t t t t t t t turbine and generator as well as balance of plant and environmental clearance received for 7:04 7 minutes, 4 seconds the project. The second project is on on account of hydro pump storage hydro project for implementation of 3 gig of 7:11 7 minutes, 11 seconds pump storage hydro capacity activities are underway where the following major milestone have been achieved storage facility agreement with MS3 sale 7:20 7 minutes, 20 seconds executed. Second later of award issued for the civil and hydromechanical package as well as electrical and mechanical package and third 7:28 7 minutes, 28 seconds environmental clearance received for the project. 7:32 7 minutes, 32 seconds taken with NABA power acquisition CP complies are underway right now and transaction expected to completed in the 7:39 7 minutes, 39 seconds current quarter. Apart from these renewable projects of 4 gawatt and transmission project of solar are under 7:46 7 minutes, 46 seconds implementations further details of the pipeline project have been summarized in our latest university presentation available to in 7:53 7 minutes, 53 seconds our website. That's all for this quarter. Now I would request coordinator to open the line for Q&A session. We miss everybody to say stay safe and 8:02 8 minutes, 2 seconds health as we thank you so much. Handing over to the operators. 8:06 8 minutes, 6 seconds Thank you very much. We'll now begin with the question and answer session. 8:11 8 minutes, 11 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 8:17 8 minutes, 17 seconds If you wish to remove yourself from the question queue, you may press T and two. 8:23 8 minutes, 23 seconds Participants are requested to use handsets while asking a question. 8:28 8 minutes, 28 seconds Ladies and gentlemen, we will wait for a moment while the question key symbols. 8:36 8 minutes, 36 seconds Participants, you may press RN1 to ask a question. 8:45 8 minutes, 45 seconds The first question is from the line of M Kumar from ICICI securities. Please go ahead. 8:50 8 minutes, 50 seconds Yeah, good morning sir. Thanks for the opportunity. Uh my first question is sir can you please help us again with the 8:58 8 minutes, 58 seconds one-off uh in the quarter in generation and uh explain the nature of the one-offs. I think we missed I think you 9:05 9 minutes, 5 seconds mentioned opening commentary uh but I missed Barb couldn't understand it. Yeah. 9:11 9 minutes, 11 seconds So one of item is basically unosition power purchase cost which they have kept it for FI 2425 and two up was due by 9:21 9 minutes, 21 seconds March in the last quarter of uh we got the two up order in the last quart of March. So in the last part of March they 9:28 9 minutes, 28 seconds have kept the power unos power purchase cost particularly and they have reduced the they have made a disallowance of 171 crores 9:36 9 minutes, 36 seconds that is one of item for power projects but we as we highlighted we informed that the in the earlier quarter similar 9:45 9 minutes, 45 seconds allowance was given by 273 crores we made a provision earlier which was allowed by the regulators in the 9:52 9 minutes, 52 seconds previous quarter. So we are hopeful that the this will also will get approved in due course. 10:00 10 minutes Understood. And this order came in the March quarter. Am I right? 10:03 10 minutes, 3 seconds March. Yeah. Before March before 31st of March 26. 10:08 10 minutes, 8 seconds Understood. My second question is can you help us with the gas availability and clarify about whe there's the earning risk to the or there's any 10:16 10 minutes, 16 seconds availability risk of the gas for our gases power plants is in FI27. 10:24 10 minutes, 24 seconds So uh yes the as we informed earlier also that we have 10:31 10 minutes, 31 seconds contracted three cargos for meeting the summer demand so that uh we are getting those cargos we are not being impacted because of the war situation 10:41 10 minutes, 41 seconds between us and Iran. So the summer cargo for the summer meeting the summer demand we have contracted three caros out of which two caros we have already received 10:50 10 minutes, 50 seconds it. The next cargo is expected to come in the month of June. So for meeting the summer demand. So that situation remains 10:56 10 minutes, 56 seconds same and the situation going forward price has gone up a bit. But we expect that things will stabilize in some time 11:05 11 minutes, 5 seconds and supply will start we will start supply will flow in I would say from the state of foremost and as far as the 11:14 11 minutes, 14 seconds supply is concerned our view is that the gas there is ample amount of gas is available in the market 11:22 11 minutes, 22 seconds though the price because of the current situation price has gone up but as far as supply is concerned it's not a major 11:29 11 minutes, 29 seconds concern I would say so Availability proving availability is not the issue. 11:33 11 minutes, 33 seconds We will continue to get the recover the fixed cost based on the availability. Of course, price is yes bit higher. We'll we'll take some time to stabilize. 11:42 11 minutes, 42 seconds And my last question on the on the capex which you did in F26. Can you help us with the number and also the segment 11:50 11 minutes, 50 seconds wise capex and your expectation of capex in F27? 11:58 11 minutes, 58 seconds So in terms of uh can I give the full year details or the quarterly details you want? The full year details sir have 26 full details. Yeah. 12:06 12 minutes, 6 seconds Yes. So license distribution and franchisee we incurred almost 1,600 crores capex for the full year 12:15 12 minutes, 15 seconds transmission uh since the one project is got commission solut 550 crores in transmission projects. 12:25 12 minutes, 25 seconds Thermal project particularly coal based project we spend about 700 cr capex and the renewal is a substantial chunk 12:34 12 minutes, 34 seconds close to 6,500 capex we spend the further for the renewables understood one and the capital for f27 12:41 12 minutes, 41 seconds expectation how much it will be definitely higher than this so I would say definitely much much 12:49 12 minutes, 49 seconds higher than this amount uh is it is fair 2x of this number. 12:56 12 minutes, 56 seconds So Mo, we will not be able to give you any guidance per se. Uh but you know investor PPT we have up uploaded project 13:04 13 minutes, 4 seconds wise SEO dates guidance would be difficult to give but what we can say is that current year KEX the next year KEX would be higher than what we have incurred in FIA 26. 13:14 13 minutes, 14 seconds Understood sir. Thank you and all the best. Thank you. Thank you. 13:18 13 minutes, 18 seconds Thank you participants. You may press star and one to ask the question. 13:24 13 minutes, 24 seconds Next question is from the man of Summit Kesor from Access Capital. Please go ahead. 13:30 13 minutes, 30 seconds Uh good morning Sarah Bhai and Rishi. My first question is uh you know around gas again. Good to hear that two cargos of 13:37 13 minutes, 37 seconds gas out of three have come. uh what are the source uh countries from which you're getting gas uh now and uh uh the 13:46 13 minutes, 46 seconds LG sourcing agreement which was with BP Jera uh uh I think which kicks off uh you know I think 2027 13:54 13 minutes, 54 seconds uh is is that was that from Middle East countries or uh is is the sourcing not specified in the contract 14:04 14 minutes, 4 seconds so the cargo which two two caros we have got it it's not coming from the state of harmouth it Other than so foremost so we have we are 14:13 14 minutes, 13 seconds getting the caros and the third caros also we expect will will get it so should not be a issue that is what 14:20 14 minutes, 20 seconds currently we foresee in terms of the supply starting from fy current calendar 27 years yes it is on with the DP and JR 14:29 14 minutes, 29 seconds so and uh hopefully things will will be normal at by that that time uh should 14:37 14 minutes, 37 seconds not have any material issue I would in getting the supply in FIL year 27 onwards. 14:43 14 minutes, 43 seconds EPJR would be how many caros in the next financial year. 14:49 14 minutes, 49 seconds So in total both both of them combined around 10 caros per calendar year. 14:55 14 minutes, 55 seconds Wow that's a lot of gas. So this is only for torrent power or for torrent gas also. 15:00 15 minutes Something will be we have to allocate for the torrent gas also. So how much is the torrent power which is relevant for 15:11 15 minutes, 11 seconds five five caros for torrent power. 15:15 15 minutes, 15 seconds Got it. And the uh uh is the pricing in the contract for the three cargos for summer demand this year uh uh uh is around $10 is my understanding. 15:27 15 minutes, 27 seconds So sum will not be able to give you exact pricing but those these are all fixed and hence they are not high as what we see at the spot prices. 15:37 15 minutes, 37 seconds So they are lower than that. 15:40 15 minutes, 40 seconds Yeah. The second question is on the TND segment. So you you explained uh the 15:47 15 minutes, 47 seconds couple of non-recurring items uh during the quarter but what I'm more interested is interested in is that after the shift 15:54 15 minutes, 54 seconds in the return framework uh on a like forlike basis if you would have 16:01 16 minutes, 1 second calculated your uh sort of uh return uh under the new regime versus the old regime uh is that proving to be roe 16:11 16 minutes, 11 seconds accretive uh and to what extent you know So if you can sort of help explain this particular point. 16:20 16 minutes, 20 seconds So yeah uh let me take that question. So basically if you look at it the roe regime uh which was earlier was 14% flat 16:29 16 minutes, 29 seconds now it has been shifted to ROC but uh assets which were capitalized pre14 2025 16:37 16 minutes, 37 seconds that those will also get incremental incentives if we are able to perform. So if if I look at it current year uh the 16:45 16 minutes, 45 seconds roe is is better than what we would have earned under the under the earlier regime. Now the incremental incentives will depend on the performance-based 16:53 16 minutes, 53 seconds incentives which means if you uh if you are able to manage that or if you're able to get that you will have higher 17:00 17 minutes incremental ROE assuming that you'll be able to achieve those performance-based parameters roe definitely will be uh 17:09 17 minutes, 9 seconds higher than what we got under the earlier regime. 17:14 17 minutes, 14 seconds Vishi you are already one of the best operating discoms in the whole country I mean the ATNC losses are two and a half% 17:20 17 minutes, 20 seconds if I remember so what better can you do so what what is the performance yeah so it's not only TNT losses uh so 17:29 17 minutes, 29 seconds mean it is it is a a host of factors which also takes care of your availability of network it also takes care of your smart meters how are you 17:38 17 minutes, 38 seconds achieving that it also talks about Definitely TND losses and all. It also talks about your collection 17:45 17 minutes, 45 seconds efficiencies. So uh there are all milestones being been being given. So we are hopeful of get achieving the most of 17:53 17 minutes, 53 seconds the milestone that is what the current expectations. 17:56 17 minutes, 56 seconds Got it. Just the last question on the renewable segment. Uh so there was a yearon-year decline in PBDIT in the 18:03 18 minutes, 3 seconds quarter from the renewable segment. So uh are you also getting impacted because of the uh curtailment uh uh issues and 18:13 18 minutes, 13 seconds uh how are you placed in terms of evacuation uh for the 4.3 gawatt peak that you are uh uh under that is under 18:20 18 minutes, 20 seconds implementation and so how would you phase out the capacity addition after a rather lackluster year if I may say so in terms of capacity addition for 18:29 18 minutes, 29 seconds torrent power at 250 megawatt plus how what is it looking uh through FI 2728 and what is phasing how much will come 18:36 18 minutes, 36 seconds in first half and second half of the year if you can give some color. 18:40 18 minutes, 40 seconds So we are not impacted by this uh scenario I would say 18:48 18 minutes, 48 seconds and we are back with PPA. So we are not worried only open capacity very minuscal open capacity. So 18:56 18 minutes, 56 seconds there is no curtailment I would say in in in our uh PP our our renewable power project in supply. So we are not 19:05 19 minutes, 5 seconds impacted and we don't expect that the there will be some impact going forward also because of the curtailment things. 19:12 19 minutes, 12 seconds So as far as phasing is concerned uh Sumit so effectively we expect that next 19:19 19 minutes, 19 seconds year there should be 1.2 to 1.4 G of commissioning. Uh if you look at the phasing uh if look at our investor PPT 19:27 19 minutes, 27 seconds we have broadly given which projects are expected to come along with months which are expected to come. So you can refer that. Yeah. 19:37 19 minutes, 37 seconds Sorry. Sorry. I think yeah that that information is there. Thank you. Thank you. 19:44 19 minutes, 44 seconds Next question is from the line of sad Jen from Amit Capital. Please go ahead. 19:49 19 minutes, 49 seconds Hi. Uh thank you. Uh just first clarification on the one-offs. So if I understood correctly uh generation reported reported ITA loss is um 39 KS. 20:02 20 minutes, 2 seconds You're saying there's a one off of 171 K. So that gets added but still that's 20:08 20 minutes, 8 seconds that's um saying maybe 120 130 K of beta which is typically lower than the beta 20:15 20 minutes, 15 seconds you generate on the regulated assets. So what is driving that or is there anything else you're missing and secondly on the oneoff would be um just 20:24 20 minutes, 24 seconds clarifying. So 1 10 odd per k is the transmission distribution beta you saying there is 186 cr of oneoffs there 20:32 20 minutes, 32 seconds right u just just clarification on the one-offs so generation as you rightly said the 171 crores of the charge we have taken 20:41 20 minutes, 41 seconds in the generation business which has integrated the generation emitter removing that there is a about 90 crores 20:48 20 minutes, 48 seconds reduction mainly because of two factors one is the higher onm expenses because of schedule maintenance And we made some 20:56 20 minutes, 56 seconds certain provisions last year uh which mean we have reversed certain provisions last year which is not the 21:04 21 minutes, 4 seconds case this year that is that both has impact of the generation beta in terms of distribution we got the carrying cost 21:11 21 minutes, 11 seconds order in the month of March uh and we have boost income of 186 crores and this is a routine feature I would say it's 21:19 21 minutes, 19 seconds not a basically we don't see as a as a one-off because every year we are getting carrying cost because of the 21:27 21 minutes, 27 seconds regulatory assets we have built up so far. So it's a it will be a routine features and we keep on getting this kind of orders as and when the certain items will be approved in our favor. 21:40 21 minutes, 40 seconds Okay. The second one the gas uh business um you mentioned there are 10 cargos you have contracted and some will be torrent 21:48 21 minutes, 48 seconds gas and torrent power. Just wanted to understand um how do you have to show availability because 78 caros for 21:56 21 minutes, 56 seconds torrent power will not be sufficient for showing 80 85% availability. How what do you have to show to get the full 22:03 22 minutes, 3 seconds carrying cost? Just um understanding how that process works and also at the current um gas prices do you see any potential at all for selling into HTM? 22:15 22 minutes, 15 seconds Are you seeing any demand in SM or do you see any LG trading gain possibility at the current slope levels? 22:21 22 minutes, 21 seconds The 10 cars which which we have booked from the next onwards is a uh we have contracted 10 caros but always 22:30 22 minutes, 30 seconds spot market or anything hasn't been required we we can we can buy it basically it's not these are the cargos 22:38 22 minutes, 38 seconds available only. So always opportunity is available to buy B cargo also as as in when the demands we see the demand coming in and the price are reasonable. 22:47 22 minutes, 47 seconds So yes will go up based on the demand and the price uh going forward and such just to 22:56 22 minutes, 56 seconds add uh effectively if you look at it uh last four or five years my PPA based gas based thermal power plants that average 23:04 23 minutes, 4 seconds PLS has been around 30 to 35%. If I uh if I assume that kind of PLF going forward also six to seven cargos are sufficient enough to take care of that. 23:15 23 minutes, 15 seconds If actually all these caros are take or pay contracts so if you assume at 85% PLF and book your cargos and if that is 23:23 23 minutes, 23 seconds not lifted by the discom then you are you are looking at take or pay penalties or take or pay uh payments to be made. 23:33 23 minutes, 33 seconds So what we try to do is manage the flexibility of gas based on the biscom 23:40 23 minutes, 40 seconds demand and as rightly mentioned that we anyways have sport spot available if there is a need for cargos so and gas is 23:49 23 minutes, 49 seconds available so demonstrating availability is not at all a issue which we have demonstrated earlier also that while 23:55 23 minutes, 55 seconds recording about 35% pl so demonstrating availability is not an issue we will always demonstrate availability because 24:04 24 minutes, 4 seconds ample amount of gas is available in the market. 24:08 24 minutes, 8 seconds So you um try to show availability based on maybe anticipated TLS and in case um 24:14 24 minutes, 14 seconds the avail the demand is higher because the availability has to be in sync with the the schedule. Um in that case you 24:22 24 minutes, 22 seconds would just book caros on spot and show availability. Is that otherwise they will be under recovery if there is um 24:30 24 minutes, 30 seconds always available. So it's a question of pricing that what price gas is available. So it's a if price is 24:39 24 minutes, 39 seconds reasonable we always import the gas and that is what we did previously also and we have a fair amount of coverage 24:46 24 minutes, 46 seconds available next round on world. So availability demoing availability will not we won't foresee any issue. 24:55 24 minutes, 55 seconds Is there a possibility of um maybe han um at all at current prices or LG trading at current slope are you seeing anything um in the near term? 25:05 25 minutes, 5 seconds No. So I think uh at current prices there would be very hard I mean very difficult to uh sell power on the 25:12 25 minutes, 12 seconds merchant prices at current $20 or $16 sort of gas prices. If prices uh go 25:19 25 minutes, 19 seconds down, LG prices and demand considering uh what we have seen in last two months if that remains then that could be a 25:28 25 minutes, 28 seconds possibility going forward. But for that uh LG prices in the international market should come down 25:35 25 minutes, 35 seconds in LG trading anything slow given the current flow for you? 25:40 25 minutes, 40 seconds No. So right now we don't have many caros booked. uh so uh there is there is no inventory right now with us for uh trading business. 25:50 25 minutes, 50 seconds Okay. Just last very quickly on the leverage you've obviously exercised the optionality by uh using uh um capital 26:00 26 minutes for NABA power and also for MP. uh given the leverage that you're looking at right now uh is there potential are you 26:07 26 minutes, 7 seconds looking at uh deploying more capital on any new thermal bids or any other opportunity or for now you think you're 26:15 26 minutes, 15 seconds comfortable with the leverage and maybe execute the project you already have no so see if you look at the power is on an investment phase right now and our 26:24 26 minutes, 24 seconds leverage ratio is quite comfortable and with the committed capex also we don't see that the leverage will will exceed 26:31 26 minutes, 31 seconds beyond our beyond reach I would say so there is a enough cushion available within the balance sheet to take up more 26:38 26 minutes, 38 seconds project if we are getting the good returns also so we there is no I restriction I would say in terms of 26:46 26 minutes, 46 seconds leveraging to take up any further opportunities for investment and uh such all these thermal projects are typically five six years sort of 26:55 26 minutes, 55 seconds investment cycle which you see so right now the capeex cycles or the committed capeex which we have goes till FYI 3132 27:03 27 minutes, 3 seconds and if you really look at based on current profitability and the new projects coming in the uh leverage is 27:12 27 minutes, 12 seconds under control and once the project commissions it falls off significantly once ITA starts coming in. So we feel that there is still room for us to take 27:21 27 minutes, 21 seconds on incremental projects. Uh as far as thermal is concerned or renewable is concerned uh considering that new projects will start giving us aida cash 27:29 27 minutes, 29 seconds flows as soon as they they they commission. 27:33 27 minutes, 33 seconds The capex phing current capex phing is well balanced. So we will able to manage uh any incremental project coming into fund boot camp capex. 27:44 27 minutes, 44 seconds Okay. Thank you so much sir. Thank you. Thank you. 27:49 27 minutes, 49 seconds Next question is from the line of Sukrid Dart from my side Fred. Please go ahead. 27:54 27 minutes, 54 seconds Uh good morning to the team. I have two questions. My first question to Mr. 27:58 27 minutes, 58 seconds Surab is in your point of view, how is torrent power preparing to capture future opportunities in renewable and 28:05 28 minutes, 5 seconds distribution uh areas while uh addressing challenges such as regulatory uncertainty, fuel cost volatility and 28:14 28 minutes, 14 seconds capital intensity. what strategic levers uh will you be putting into place uh that we will see in the coming quarters 28:22 28 minutes, 22 seconds that will help you to sustain the growth and uh keep the profitability stable. 28:27 28 minutes, 27 seconds That's my first question. I'll ask my second question after this. Thank you. 28:31 28 minutes, 31 seconds So in terms of our investment plan as you know we have already announced investment of renewable we are in giving 4 G of capacity with 28,000 capex core 28:41 28 minutes, 41 seconds also we 1.6 6 Gawatt with our 23,000 crores capex pumps 3 Gawatt we have investment plan about 14,000 crores 28:49 28 minutes, 49 seconds distribution capex keep on happening every gradual capex in all across all our distribution area and yearly we 28:56 28 minutes, 56 seconds expect about 2,000 cap 2,000 crores capex at least for four five years going forward and we are doing this napa acquisition 29:04 29 minutes, 4 seconds so in terms of capex plan we have very fairly good capex plan and we are looking to power our sector say is on an 29:12 29 minutes, 12 seconds investment phase. Good opportunities are available, good projects are available. 29:16 29 minutes, 16 seconds So always we are ready and our balance sheet is very strong under balance sheet. So and for room is available to 29:23 29 minutes, 23 seconds for the fur further investment also. So we are quite comfortable I would say in terms of our investment strategy. 29:33 29 minutes, 33 seconds Thank you. My second question to Mr. 29:35 29 minutes, 35 seconds Rishi Shah is uh what improvements in financial reporting and analytics are being implemented to enhance the decision making and investor confidence? 29:46 29 minutes, 46 seconds How do you see technology and automation contri contributing to faster more accurate financial operations in the coming quarters? Thank you. 29:58 29 minutes, 58 seconds So in terms of uh decision making and all those things as I explained in my earlier remarks also that power sector 30:06 30 minutes, 6 seconds is on investment phase good opportunities are available for players like us and leverage ratio is also comfortable. So 30:15 30 minutes, 15 seconds uh it's it's not it's we are on the mean and demand is also going to be strong at least if you look at the last 10 years 30:23 30 minutes, 23 seconds CAGR of the power demand is about 6% CAGR and same thing we'll we'll see that the same momentum is continuing 30:32 30 minutes, 32 seconds so and we will since we have a very balanced portfolio of license distribution franchise distribution in terms of generation we have a two-part 30:41 30 minutes, 41 seconds tariff available for our key projects basically key plans and you have some open capacities. So all kind of a le 30:47 30 minutes, 47 seconds levers available to demo to achieve a good performance I would say going forward. 30:55 30 minutes, 55 seconds Thank you and best wishes. Thank you. Thank you. 31:02 31 minutes, 2 seconds Next question is from Lan of Sunonni from Aventus Park. Please go ahead. 31:09 31 minutes, 9 seconds Yeah. Am I audible? This is Bari from Aventus. Yeah. 31:13 31 minutes, 13 seconds So what is the adjusted eida for 4q fi26? Uh sir uh given the adjustments that you will be making in the 31:21 31 minutes, 21 seconds generation segment and in the uh transition distribution segment. After you adjust for that what would be the adjusted IA. 31:30 31 minutes, 30 seconds So for the quarter EA report is of,220 crores and one office is 171 crores via 31:39 31 minutes, 39 seconds charge. So you have to add 171 crores in the reported EA that's what the adjusted EA what's the current quarter 31:48 31 minutes, 48 seconds will we adjust even the 186 crores in the transmission distribution segment so that I I explained that it's a basically 31:55 31 minutes, 55 seconds normal since we are carrying regular asset it's bound to happen that we are going to get the carrying cost as on 32:02 32 minutes, 2 seconds most of the orders coming in so it's a normal features I would say it's not may not be considered as a one-off that is our our 32:11 32 minutes, 11 seconds ties. So it's a normal features with all I would say not only to work with all distribution company who because they 32:19 32 minutes, 19 seconds are carrying a car regulatory asset and they will acrew the carrying cost every year. 32:26 32 minutes, 26 seconds So Barani we are not considering that as a one-off uh as sor explained. 32:32 32 minutes, 32 seconds Okay. when it comes to the generation segment when I'm adjusting for this 171 crores we reported minus 39 crores um so 32:43 32 minutes, 43 seconds the adjusted eida comes to 132 crores plus side um compared to 233 crores for 32:50 32 minutes, 50 seconds fi25 same quarter that is the fourth quarter so this drop you are telling is because of um what reason sir that I 32:58 32 minutes, 58 seconds missed so the first drop is on account of the some schedule maintenance in our GS due the course of the quarter which has cost 33:06 33 minutes, 6 seconds us additionally I would say 40 crores and there was some reversal which made the last similar quarter of last year 33:14 33 minutes, 14 seconds which is not the case current in the current quarter which has impact the performance of the generation business. 33:22 33 minutes, 22 seconds Okay. And usually there is some LMG gain or merchant gain in this segment. uh uh I'm assuming there is no such uh uh number in this particular quarter. 33:33 33 minutes, 33 seconds The Q4 is always a winter month the winter quarter would be would be less merchants than LG. So if you look at the 33:41 33 minutes, 41 seconds both the quarter comparable quarters last year and the current quarter there are there are there were no material I would say gain to be reported I would 33:48 33 minutes, 48 seconds say some gain will be there but not material I would say which can be we can talk about 33:56 33 minutes, 56 seconds okay and one final clarification on this you know power purchase cost which is resulting in this um 171 cr uh number so 34:06 34 minutes, 6 seconds um is it because um uh the regulator is yet to approve this 171 crores of extra cost incurred in FA 24. 34:15 34 minutes, 15 seconds So they have put a cap on the cost. 34:18 34 minutes, 18 seconds Basically they up to certain amount they have approved beyond that they said the the as of now they are not approving it 34:25 34 minutes, 25 seconds but we will we will similar situation we have happened earlier also and in the last quarter in Q2 they have approved 34:32 34 minutes, 32 seconds the they have removed the cap and approved the full power purchase cost. 34:37 34 minutes, 37 seconds So we expect that we will we'll file appeal and we'll decision will come in our favor going forward. 34:44 34 minutes, 44 seconds Okay. And coming to the renewable segments Aida which is at 186 crores. 34:49 34 minutes, 49 seconds This uh is flattish to even lower compared to last year same quarter despite capacity addition. So uh how should we read that? 34:58 34 minutes, 58 seconds Yeah it's a flattish number. Some reduction is there because of the GBI engine one of the gas getting expired. 35:05 35 minutes, 5 seconds This is means failure is over. So we there is a there is was a mainly this is because of the mainly reduction in the 35:12 35 minutes, 12 seconds GBI income. So that is that has impacted the image of the current quarter. 35:18 35 minutes, 18 seconds Sorry uh I didn't get what is the GBI income generation based incentive which government give for the renewable 35:25 35 minutes, 25 seconds project for certain period of time 7 to 10 years that has expired this mean that facility that benefit was completed so 35:35 35 minutes, 35 seconds that was not available for the current quarter that is that has the profitable renewable segment. 35:44 35 minutes, 44 seconds Understood sir. Uh so when would we uh have NAB power numbers getting consolidated? 35:52 35 minutes, 52 seconds We expect uh the in the month of June we will able to complete the transaction because currently the NABA LNT is in the process of complying the CP conditioned. 36:04 36 minutes, 4 seconds So which once they it will happen uh trans we will continue consume the transaction uh before in the current in the current quarter. 36:15 36 minutes, 15 seconds So we we expect the June numbers will will will the Napa para project 36:23 36 minutes, 23 seconds okay that is 1Q 27 will have consolidation of Napa. Yeah that is what currently we expect. 36:30 36 minutes, 30 seconds Okay sir. And final question is on our gas supply. If my understanding is right, we have three cargos from IOC and 36:37 36 minutes, 37 seconds uh Reliance um and three cargos um for the summer demand and we also have that that Japan 36:46 36 minutes, 46 seconds cargo that we have booked from uh calendar year 27. Um so if uh my understanding is right so with all these 36:55 36 minutes, 55 seconds cargos um would we be able to um first have the 37:02 37 minutes, 2 seconds availability for Suzan assured for FI27 plus also uh generate power during the summer time in the next one year also. 37:11 37 minutes, 11 seconds No your understanding is not right. I would say in terms of first point about the IOC and the OMG reliance gas it's 37:20 37 minutes, 20 seconds not a three caros IOC car IOC currently the force measure because it was they were getting the gas for the Qatar which 37:28 37 minutes, 28 seconds is the force measure so nobody is getting the gas from the IOC right now in terms of OC and the Reliance gas 37:38 37 minutes, 38 seconds which is a domestic gas that it was as government has pulled the cargo pulled all the gas to so that they can supply 37:45 37 minutes, 45 seconds to the paral sector requirement like CGD and the fertilizer kind of a thing. So power sector comes later. So those gas 37:54 37 minutes, 54 seconds is not available to the power sector. So we are not getting the gas because the government has pulled the gas of vas and 38:02 38 minutes, 2 seconds so that is not available in terms of your second point about the caros. Yes, the two cargos we have received. one cargo is expected to get in month of 38:10 38 minutes, 10 seconds June and any further requirement we can meet from the spot purchase or maybe short-term contract we can able to do during the course of the balance period 38:19 38 minutes, 19 seconds of the year and in terms of caros coming in from the Japan and the BP basically will will keep on getting from the next 38:27 38 minutes, 27 seconds onwards so that will continue so right now with the three cargos that we are getting from summer demand we are 38:36 38 minutes, 36 seconds meeting availability of sujen and neurosenision and also will be able to you know generate if required from for 38:45 38 minutes, 45 seconds from DJ plant is the understanding right sir. So we three caros we are it's available for our distribution. We are 38:52 38 minutes, 52 seconds optimizing our distribution requirement and supplying meeting the availability criteria. Any additional gas available 39:00 39 minutes through this optimization will be used for the merchant merchant side and you mentioned in one of the replies 39:08 39 minutes, 8 seconds that at $16 to $20 it's difficult to make money in the merchant market. Um just wondering given it will come to 39:17 39 minutes, 17 seconds variable cost of around uh uh 9 10 rupees um the highriced DM dam market 39:24 39 minutes, 24 seconds will have uh merchant prices uh higher than that. So so just wondering why would you say that? 39:30 39 minutes, 30 seconds No we are not saying that it would be difficult. So what we are saying that on the RTC business it would be difficult but on the peak market which which is 39:39 39 minutes, 39 seconds our target market we are able to do something about the peak market not the RTC business but bar you can't buy a cargo only for 39:48 39 minutes, 48 seconds the peak market so you need some basic demand for RTC wherein you then book the cargo and then supply. So on a it is it 39:56 39 minutes, 56 seconds is not just peak market for which you buy a cargo. So there are logistical issues also involved. So with our P cargo we are optimizing the our all all 40:05 40 minutes, 5 seconds our demand requirement and then doing it. 40:10 40 minutes, 10 seconds So final two questions with the Japan BP cargo coming from next year would we uh have enough comfort comfort for the full 40:19 40 minutes, 19 seconds year instead of relying on this summer summer cargo. Will that be the right understanding? 40:24 40 minutes, 24 seconds Yeah with J and V cargo. Yes. uh some uh and 40:32 40 minutes, 32 seconds additionally we can always buy the squad caros or the do the short-term contract will be will be enough to demonstrate 40:39 40 minutes, 39 seconds the availability for Susan and no Susan okay that's uh pardon me last question 40:45 40 minutes, 45 seconds on these three summer caros we said we got two so uh does that mean that this is coming from the nonpersian Gulf source 40:54 40 minutes, 54 seconds yeah you are right the last the last cargo that we are expecting ing in June would also be non-persian girl so it may not be 41:02 41 minutes, 2 seconds impacted is that understanding right yes you are right okay sir uh thank you so much and all the best 41:10 41 minutes, 10 seconds thank you so much thank you thank you next question is from the line of Anojapadai from invest India please 41:16 41 minutes, 16 seconds go ahead yeah hi thanks for the opportunity sir so just one clarification on the capex 41:24 41 minutes, 24 seconds guidance which you mentioned so roughly you mentioned it's around uh 28,000 for renewables, 26 uh for whole and 14 was 41:33 41 minutes, 33 seconds for the uh PHP that takes the total to roughly 68 plus your normal distribution capex to the tune of 1500 or 2,000 41:41 41 minutes, 41 seconds peranom that takes the total to 80,000 over a period of 5 years. Is this a fair assumption? If we assume that annually 41:48 41 minutes, 48 seconds that number would range in the range of 15 to 20,000 coal coal 26 which is coal you said 41:55 41 minutes, 55 seconds 26,000 crores which is about 23,000 crores only one correction. Yeah. Yeah. 42:02 42 minutes, 2 seconds Yeah. 26,000. So total 80,000 crores over next 5 years. Is that a fair assumption? 42:07 42 minutes, 7 seconds Yes. You can you can take this this kind of assumptions here. We are working with this kind of assumptions. 42:14 42 minutes, 14 seconds Okay. And I know like if you just want to phrase it out uh I believe probably you know second or third year onward it would be heavy capex depending upon the 42:22 42 minutes, 22 seconds milestone which you are achieving on the construction phase. 42:25 42 minutes, 25 seconds So any okay okay fair enough sir and uh secondly sir on the connectivity part so 42:33 42 minutes, 33 seconds uh can you you know just mention how the connectivities are placed for the upcoming renewable projects. 42:39 42 minutes, 39 seconds So connectivity in most of projects are in place right now. So connectivity is not the issue but the upcoming transition line which has to come on 42:48 42 minutes, 48 seconds time so that we can execute our implement all our renewable projects on time as per the expected schedule I would say. So otherwise connectivity is 42:57 42 minutes, 57 seconds not an issue for our renewable projects available for the almost most of the project I would say. 43:05 43 minutes, 5 seconds Okay sir. And lastly on any development on the parallel lensing no further development at this moment. 43:15 43 minutes, 15 seconds Thank you sir. That's all from my end. Thank you so much. Thank you. 43:21 43 minutes, 21 seconds Next question is from line of Sherom Kapoor from Jeff India. Please go ahead. 43:28 43 minutes, 28 seconds Hi sir thanks for the opportunity. Uh just had a question on your merchant LNG gain. So you said of course for Q uh was 43:35 43 minutes, 35 seconds not material but for the full year could you maybe quantify how much was the overall gain during the year and how many merchant units were sold. 43:45 43 minutes, 45 seconds So so we don't bifurcate it between LNG sales and merchant. Um if I look at the total gains from both of them it is it 43:53 43 minutes, 53 seconds would be around 675 crores for the full year. Uh in terms of units what we sold uh it would be around uh 1,400 MUS. 44:06 44 minutes, 6 seconds Got it sir. Um and what just to understand on your NHA power um acquisition so uh could you you know 44:14 44 minutes, 14 seconds this is 6,900 crores um acquisition. Uh how much would be the debt component and equity component? Would you have a sense 44:21 44 minutes, 21 seconds of a rough split? And secondly um you know how much of this could a second question on NA would be how much of this you know would add to your fixed asset 44:30 44 minutes, 30 seconds base going ahead and thirdly what are the tariffs you're looking at in Naba power um on that plant. So it's a 44:39 44 minutes, 39 seconds acquisition enterprise value as we announced is about 6,800 crores and the 44:45 44 minutes, 45 seconds equity value equity value about 3 we have about 3,400 crores date the balance is the equity value the plan to raise is 44:53 44 minutes, 53 seconds about close to 3,5 to 4,000 crores for for funding of the projects 45:01 45 minutes, 1 second and tariff will be as a two-part tariff basically so uh variable of his pass through that is what the business model is. 45:13 45 minutes, 13 seconds Uh would you be able to share um you know what kind of tariffs we are expecting uh at least on the the fix side? 45:24 45 minutes, 24 seconds We don't information available right now but we can we can share the information offline. 45:31 45 minutes, 31 seconds Okay, understood sir. Uh thank you so much. Thank you. 45:36 45 minutes, 36 seconds Thank you. Next question is from the line of Dufu Mushel from HTFC AMC. 45:41 45 minutes, 41 seconds Please go ahead. Uh yes sir. Thank you so much. So a few questions on the renewable pipeline. So the MSED sale project when should we expect the COD? 45:50 45 minutes, 50 seconds So in fact uh 3 out of 367 megawatt most of the capacity we have commissioned some capacity is not commissioned 45:59 45 minutes, 59 seconds because of the locations of the land which you have got it from the government is not ideally suitable. So we have asked for the replacement and uh 46:09 46 minutes, 9 seconds from the government. It's a basically lease land which was provided the government. So we expect the replacement 46:15 46 minutes, 15 seconds of the government as and we expect next 6 to 9 months I think it should get commissioned. 46:23 46 minutes, 23 seconds So you can do partial billing uh for the portion of the capacity that you have commissioned. 46:27 46 minutes, 27 seconds Commission we have started a billing. So non-commissioning is a is a government issue because there is a scattered project. It's located various locations 46:36 46 minutes, 36 seconds project is we have a solar project in NIC area. So once that issue is sorted out in fact the whatever capacity we 46:44 46 minutes, 44 seconds have commission we have started the milling also. 46:48 46 minutes, 48 seconds And so for the uh SEI 12 project COD COD we have mentioned so we have applied 46:57 46 minutes, 57 seconds for extension there it will take some time. 47:01 47 minutes, 1 second Uh so should I expect say sometime in FI 27 28 or 28? 47:08 47 minutes, 8 seconds 27 I think before March 27 will get all right and sir uh are you still going ahead with the merchant power 600 47:17 47 minutes, 17 seconds megawatt merchant project or are there any changes? 47:21 47 minutes, 21 seconds So we are doing that project. So but Adru if you recollect our past interactions what we have said is that 47:28 47 minutes, 28 seconds all these merchant right now is merchant we are commissioning those capacities but as and when going forward we if we win any tender or bids we will be 47:36 47 minutes, 36 seconds allocating that to those bids so effectively it may not remain merchant for the life of the project. Yeah. But uh you go ahead with the uh with the project construction and everything. 47:45 47 minutes, 45 seconds You're going ahead. Yes. Okay. 47:49 47 minutes, 49 seconds And lastly uh we have seen that a lot of developers are doing is the uh you know switch to batteries um because you also 47:56 47 minutes, 56 seconds have a lot of FD projects and hybrid projects. So any configuration changes in your projects uh and any cost uh you 48:02 48 minutes, 2 seconds know reduction or probably improvement in IRS that you are seeing? 48:08 48 minutes, 8 seconds Not as of now. I think uh most of the projects have a small batteries. So uh some of our projects which are hybrid uh 48:16 48 minutes, 16 seconds or RTC projects they have battery component already uh built in but these are not very large. So there will not be a significant shift in cost. 48:26 48 minutes, 26 seconds Okay. Sure. Okay. Perfect. Thank you so much and I'll leave this. Thanks. Thank you. Thank you. 48:35 48 minutes, 35 seconds Next followup question is from the line of Mo Kumar from ICICI securities. Please go ahead. 48:40 48 minutes, 40 seconds Yes sir. Thanks for the opportunity once again. Uh so a few clarification one is uh did you used to book uh generation 48:49 48 minutes, 49 seconds based incentive for the re uh mainly in the fourth quarter? Is that understanding right? 48:57 48 minutes, 57 seconds No it was it was across uh the year the year every quarter. 49:01 49 minutes, 1 second Understood. Understood. Second question one of the project the the time period and the amount was used basically. So 49:10 49 minutes, 10 seconds that is why discontinu from the last quarter onwards last quarter onwards. Yes. 49:15 49 minutes, 15 seconds Understood sir. I said given the vary portfolio how do you see the impact of DSM uh the new regulation and can you 49:25 49 minutes, 25 seconds please help us with the current status of the new regulation? 49:28 49 minutes, 28 seconds It's not a our portfol not a wind heavy I would say it's a balanced portfolio if you look at the 4 G capacities we are 49:35 49 minutes, 35 seconds commissioning almost 50% is coming from the wind 50% is coming from the solar it's not a wind heavy portfolio I would say 49:43 49 minutes, 43 seconds uh I'm talking about the existing portfolio sorry existing portfolio has winds how do you 49:50 49 minutes, 50 seconds see the impact of this you see 60% wind 40% solar here yeah some impact 49:58 49 minutes, 58 seconds is there in terms of PLF I would say and may take it offline. Uh my third 50:07 50 minutes, 7 seconds question sir uh the are you seeing the incremental opportunity thermal bidding opportunity for the states and do we and are we looking to bid for it? 50:18 50 minutes, 18 seconds Yeah there are a couple of states contemplating of announcing the thermal capacity. So we are actively looking at it. Understood. 50:27 50 minutes, 27 seconds My my last question on the merchant capacity which you spoke about on the re side is there any configuration between the solar and wind you're looking at and 50:36 50 minutes, 36 seconds are you also looking to add battery on and battery to that to ensure that you get a higher tariff? 50:43 50 minutes, 43 seconds So if you look at our uh profile of our bidding pattern of last two years I would say we are more inclined towards 50:51 50 minutes, 51 seconds the complex project like hybrid project RTC Penma project. That is what we are focusing more on those kind of a project so that we can get better also better also. 51:02 51 minutes, 2 seconds Sorry sir my question was the merchant capacity of 603 megawatt peak which you have mentioned in the PPD uh are you 51:09 51 minutes, 9 seconds asking what the between wind and solar and are you looking to add also battery in this? So Mohit if you look at the 603 51:17 51 minutes, 17 seconds MHz it would it would be slightly higher on the on the wind side out of the uh and there is some solar right now we are 51:24 51 minutes, 24 seconds not contemplating contemplating any battery usage there going forward if we feel that it is required we may may add 51:31 51 minutes, 31 seconds on but as of now we are not adding any battery because it is more of wind which is typically non-solar hours and where 51:38 51 minutes, 38 seconds you can get better uh returns understood sir thank Thank you. 51:46 51 minutes, 46 seconds Thank you very much. 51:49 51 minutes, 49 seconds Next question is from line of Neil Oswal from PGM India. Please go ahead. 51:55 51 minutes, 55 seconds Yeah. Hi sir. Thank you for the opportunity. Uh sir, do you have any current capacities uh tied up on the CNI 52:03 52 minutes, 3 seconds side? Uh do you plan to tie up future significant future capacities on the CNI side and what is your view on the CNI segment? 52:11 52 minutes, 11 seconds No. So I think uh Neil we currently have around 860 megawatt of CNI projects under construction. We keep on looking 52:21 52 minutes, 21 seconds at uh tying up oper tying up CNI with CNI consumers as and when they are 52:28 52 minutes, 28 seconds available. So we are open of tying up additional capacities but as of now we have 860 megawatt of CNI projects under construction. 52:39 52 minutes, 39 seconds Understood sir. All right. Thank you. Thank you. 52:43 52 minutes, 43 seconds Thank you. Next followup question is online of Adita Berla. Please go ahead. 52:50 52 minutes, 50 seconds Sorry from Adita Berla. 52:53 52 minutes, 53 seconds Hello. Am I auding about uh your gas to plant uh business 53:03 53 minutes, 3 seconds in the long term? uh given that LNG as a fuel has proven expensive uh for India and that's why that's one of the reason why we have seen Indian plants running 53:12 53 minutes, 12 seconds at 15 20% PLS and uh also also there there was an impending global gas glut 53:20 53 minutes, 20 seconds uh that was expected to come in the in 2027 due to increased liquid action capacity and due to Iran war that has 53:28 53 minutes, 28 seconds also uh been pushed forward. So I just wanted to understand what kind of PLS do you uh are you expecting over long run. 53:37 53 minutes, 37 seconds Thank you. 53:38 53 minutes, 38 seconds So basically you are right there's a gas glut is coming in basically lots of gas is going to flow in uh maybe because of 53:46 53 minutes, 46 seconds the Iran war some push back will be there in terms of timing I would say not in terms of availability going forward otherwise we don't see any change in the 53:55 53 minutes, 55 seconds situation expect some timing will be delayed I would say I mean more gas will be flow I would say so in terms of PL 54:04 54 minutes, 4 seconds it's very difficult to predict the PLF but yes the availability may not be the issue going forward. Uh price one has to monitor the price and 54:12 54 minutes, 12 seconds then take your calls and and the other thing is if you look at our portfolio around 50% of our portfolio of gasbased 54:20 54 minutes, 20 seconds power plant we have tied up long-term PPS with our own discounts. So there uh we are getting fixed cost recovery on 54:27 54 minutes, 27 seconds the availability basis that should not be an issue. As far as merchant capacities are concerned, we uh we take 54:34 54 minutes, 34 seconds uh the benefit of short-term pricing mismatches. Uh this year it was this 54:42 54 minutes, 42 seconds year it was it is slightly constrained because of LNG a very high cost of LNG. 54:46 54 minutes, 46 seconds But if you look at last four to five years we have been able to make decent profits out of this merchant capacities which we have. So uh our expectation 54:55 54 minutes, 55 seconds going forward is once the all this subsides India as a market demand should improve and there will always be a 55:02 55 minutes, 2 seconds deficit of power going forward which will allow us to take benefit from our merchant capacities. That is the expectation right now. 55:12 55 minutes, 12 seconds Okay sir. Thank you sir. Thank you. 55:19 55 minutes, 19 seconds Next question is from line of sunny from a spark. Please go ahead. 55:26 55 minutes, 26 seconds Yeah, I just forgot to ask one question. 55:29 55 minutes, 29 seconds Uh after June uh uh of this year uh uh what is the source of gas we will have to show availability at Sudan and Eurosen. 55:41 55 minutes, 41 seconds So basically short-term short-term we have to buy from the short-term market. 55:45 55 minutes, 45 seconds basically for on the spot in the short term we do the short-term contracts. So gas is available. Gas is available. 55:55 55 minutes, 55 seconds Gas is not issue. Basically at what price we are getting gas I think I think the question is the price not 56:03 56 minutes, 3 seconds availability of gas. So for demonstrating availability we can gas is emptyly available. Now whether discom is 56:11 56 minutes, 11 seconds willing to take that gas and use that electricity at high rates or they can they are able to manage it from buying 56:19 56 minutes, 19 seconds it from the merchant market. that balancing will have to be done. So as far as availability of plant is concerned, there is no shortage of gas. 56:26 56 minutes, 26 seconds It is only the price which is higher. 56:30 56 minutes, 30 seconds Sure. When you say spot, it would be you know gas from IGX something like that or no spot caros. What is trying to say? 56:39 56 minutes, 39 seconds Spot caros. 56:40 56 minutes, 40 seconds Right now domestic gas is not available as government has pulled everything. So we have to import the gas. 56:48 56 minutes, 48 seconds Understood. Um so hence you know when the tenders are invited you would be able to get it in a short notice 56:56 56 minutes, 56 seconds which sort of tenders the spot cargo. 57:01 57 minutes, 1 second Yeah. Yeah. So we keep on doing if you are procuring caros we generally do we float a tender in the international market and then we we bid it out. 57:12 57 minutes, 12 seconds Understood. Okay. That's that's it from my side. 57:16 57 minutes, 16 seconds Thank you. As there are no further questions, I'll now hand the conference over to Mr. Sor Mashraala for closing conference. 57:24 57 minutes, 24 seconds Thank you every everybody for joining Torren foring calls. We wish everybody to stay safe and healthy. Thank you so much. 57:31 57 minutes, 31 seconds Thank you very much. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us and you may now disconnect the lines. 57:40 57 minutes, 40 seconds Thank you. Thank you. Thank you. Manus.