Vikram Solar Ltd — Q4 FY26

Vikram Solar Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=QMnfGdC8u2Q Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome you all to the Q4 and FI26 earnings conference call of Vicram Solar Limited hosted by Go India Advisers. 0:15 15 seconds Please note that today's conference call is being recorded. The audio and content of this earnings call constitute proprietary corporate material of Vikram 0:24 24 seconds Solar Limited may not be reproduced, redistributed or quoted in any public forum or media communication without the company's prior written approval. 0:34 34 seconds I now hand the conference over to Mishal Kanduja from Goindia Advisor. Thank you and over to you Mishan. 0:42 42 seconds Thank you Ikra. Good morning everyone and welcome to Vicram Solar's earnings call to discuss Q4 and FI26 results. We 0:50 50 seconds have the senior management team with us and joining us on the call today is Mr. 0:54 54 seconds Ganesh Chri chairman and managing director, Mr. Samir Natpal, chief executive officer, Mr. Ranjan Jindal, chief financial officer and Miss Reinel Sha, general manager corporate finance. 1:05 1 minute, 5 seconds We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the 1:13 1 minute, 13 seconds risk that the company faces. Uh may I now request Mr. Chi to take us through the company's business outlook and financial highlights subsequent to which 1:21 1 minute, 21 seconds we can open the floor for Q&A. Thank you and over to you sir. Thank you Shitan. I hope I'm audible. 1:30 1 minute, 30 seconds Good morning everyone and a very warm welcome to Vicram Solar's fourth quarter and fully year FY26 earnings conference 1:38 1 minute, 38 seconds call. On behalf of the entire Vikram Solar management team, I would like to thank our investors, analysts and 1:46 1 minute, 46 seconds stakeholders for your continued confidence and support. FI26 has been a year of great significance for us and I 1:54 1 minute, 54 seconds will walk you through three things. how the operating environment has shifted, what we have built and where we are headed. 2:03 2 minutes, 3 seconds My remarks will follow by a detailed operational and financial walk through from our management team. 2:10 2 minutes, 10 seconds Now the geopolitical disruptions for the past two years most recently in West Asia have reinforced one reality for 2:19 2 minutes, 19 seconds importled economies like India. Energy dependence is now a structural risk not a price cycle risk. Disruption in oil, 2:29 2 minutes, 29 seconds gas and freight roots are no longer temporary shocks. They are permanent feature of the global system. Solar uniquely sits outside all of it. 2:42 2 minutes, 42 seconds The result is fundamental shift. Solar is no longer being pulled by incentives. 2:47 2 minutes, 47 seconds It is being pushed by policy, by supply chain realignment and by energy security. 2:55 2 minutes, 55 seconds Security, economics and policy are now aligned. And solar sits at the very center of this energy transition, not at its edge. 3:06 3 minutes, 6 seconds This is the world Vicram Solar was built for. 3:10 3 minutes, 10 seconds Just weeks ago, Mr. Amitab Kant former CEO of NITI Aayog and India's G20 Sherpa 3:17 3 minutes, 17 seconds described India's import dependence as a national security crisis not merely an 3:25 3 minutes, 25 seconds energy issue. He called for non-fossil fuel capacity to be scaled from 500 3:33 3 minutes, 33 seconds gawatt to 1500 gawatt by 2030 alongside large scale storage and critical mineral 3:41 3 minutes, 41 seconds processing at home. His framing energy independence is sovereignity captures exactly the moment we are operating in. 3:52 3 minutes, 52 seconds India is currently the world's third largest solar market by annual additions. Industry assessments project 3:59 3 minutes, 59 seconds us moving to second within the calendar year. This is huge. We are not chasing a cycle. We are building for the coming decade. 4:09 4 minutes, 9 seconds As we scale into more integrated execution focused organizations, I am pleased to welcome Samir Samir Nagpal as 4:18 4 minutes, 18 seconds our chief executive officer. Samir brings over 35 years of leadership experience across a diverse set of 4:25 4 minutes, 25 seconds sectors with a proven record of architecting turnarounds, building high performance teams and driving profitability. 4:34 4 minutes, 34 seconds Please do join me in welcoming him. 4:38 4 minutes, 38 seconds His mandate is also very clear. driving operational discipline across the platform, strengthening execution rigor 4:46 4 minutes, 46 seconds and aligning the business for the next phase of growth. I now now turn to what I believe is the most consequential strategic decision we have taken. 4:57 4 minutes, 57 seconds Our backward integration roadmap. 5:01 5 minutes, 1 second India today imports nearly all of its wafer and ingot from China creating supply chain vulnerability for every domestic manufacturer. 5:12 5 minutes, 12 seconds Vicram Solar will capture that value chain upstream and convert India's solar surge into enduring non-transient profitability. 5:22 5 minutes, 22 seconds Our integration strategy moves into three deliberate stages. modules first, then sell, then wafer and inut. Each 5:31 5 minutes, 31 seconds stage adds depth, reduces exposure and brings more for the value chain under our control. 5:40 5 minutes, 40 seconds By the end of this road map, Vicram solar will be fully integrated from ingert to module. 5:46 5 minutes, 46 seconds Let me now turn to battery energy storage. What I view as the next major growth frontier for Vicram solar battery 5:55 5 minutes, 55 seconds energy storage is policy anchored margin accredited and the piece that converts 6:02 6 minutes, 2 seconds intermittent solar into dispatchable power as India's grid deepens and as data 6:09 6 minutes, 9 seconds center and AI load growth grows storage is no longer optional 6:15 6 minutes, 15 seconds infrastructure it is non-negotiable our target is 15 gawatt of best capacity 6:22 6 minutes, 22 seconds by FY30, positioning Vikram solar as one of the leading largest integrated solar platforms and aligned with the national pathway I was referencing earlier. 6:35 6 minutes, 35 seconds This completes our energy platform and it takes us from a product company to a complete energy solution provider 6:44 6 minutes, 44 seconds delivering solar plus storage as dispatchable power. Vikram Solar is positioned to be the partner of choice for this transition. 6:54 6 minutes, 54 seconds In summary, FI26 has been a record year for the India solar Indian solar sector and Vikram Solar has delivered alongside 7:03 7 minutes, 3 seconds it. More importantly, FI26 is the year in which we make the decisions that will define our next decade 7:13 7 minutes, 13 seconds on manufacturing, on integration, on leadership and on storage. 7:19 7 minutes, 19 seconds The direction is clear. The team is in place. We remain fully focused on delivering for our customers, our partners, and our dear shareholders. 7:30 7 minutes, 30 seconds With that, I now hand over to our CEO, Tamil. Over to you. 7:38 7 minutes, 38 seconds Thank you, GC. Good morning, everyone, and thank you for joining us. 7:43 7 minutes, 43 seconds FYI26 has been a blockbuster year for Vickam Solar and Q4 is the clearest expression of the momentum we are carrying into FI27. 7:54 7 minutes, 54 seconds We delivered our highest ever quarterly production of approximately 1 gawatt, secured our highest ever order booking 8:02 8 minutes, 2 seconds of approximately 1.9 gawatt and recorded our highest ever quarterly revenue of over 1,450 cores. 8:11 8 minutes, 11 seconds Each of this is a record in its own right. Together they tell a single story. Demand for our modules is 8:20 8 minutes, 20 seconds accelerating. Our execution is keeping pace. and the operating leverage of the platform we have built is starting to show through in the numbers. 8:31 8 minutes, 31 seconds These results are not occurring in isolation. 8:34 8 minutes, 34 seconds We are landing into a sector that is itself entering its strongest phase of structural growth and victim solar is 8:42 8 minutes, 42 seconds positioned by capacity by technology and by provenence to capture a disproportionate share of it. 8:51 8 minutes, 51 seconds What we are seeing this quarter is the early innings of a multi-year trajectory of strong growth for this company. 8:59 8 minutes, 59 seconds I will use my remarks to do three things. Lay out how we read the sector at this point of time in the cycle. Walk 9:08 9 minutes, 8 seconds you through where VOM solar stands within it. And give you a concrete update on the projects and the technology choices that will define the next three years for this company. 9:20 9 minutes, 20 seconds Let me walk you through our view on the sector. 9:24 9 minutes, 24 seconds FYI26 is a watershed year as I said for the Indian solar manufacturing and I want to be specific about why 9:32 9 minutes, 32 seconds India added 45 gawatt of solar in FI26 nearly double the 24 gawatt target and roughly 87% higher than FI25. 9:45 9 minutes, 45 seconds Cumulative installations now stand at 150 gawatt or 53% of India's 283 gawatt non fossil base. 9:55 9 minutes, 55 seconds The CAS national grid action plan projects India's peak demand rising from 10:01 10 minutes, 1 second 290 289 gawatt today to 459 gawatt by FY36. 10:08 10 minutes, 8 seconds Installed solar base must scale from 150 gawatt to 509 gaw roughly three and a half times of today's base. Battery 10:17 10 minutes, 17 seconds energy storage currently below 1 gawatt hour must reach 320 gawatt hour by FY35. 10:26 10 minutes, 26 seconds We have reached a pivotal maturity phase in the industry where policy certainity is aligning for vigorous push for backward integration. 10:35 10 minutes, 35 seconds ALM and BCD continue to provide the necessary guardrails for domestic growth. 10:41 10 minutes, 41 seconds The cell level mandate effective June 2026 is a critical milestone. 10:47 10 minutes, 47 seconds It forces a shift from assembly to true manufacturing. 10:52 10 minutes, 52 seconds Together with the wafer induct mandate, it forms a coherent industrial framework, one that rewards operational depth. 11:01 11 minutes, 1 second The discussion around the headline module capacity announcements will be addressed by the imminent backward integration. Given the barriers of 11:09 11 minutes, 9 seconds capital access, technology, execution capability and customer intimacy and a regulatory framework that requires integration, only a few will sustain. 11:20 11 minutes, 20 seconds Our working assumption is that the sector will stabilize around 80 to 100 gawatt of name plate fully integrated 11:27 11 minutes, 27 seconds sustainable capacity held by a small group of serious full stack players and the total addressable market is heading towards the similar number. 11:39 11 minutes, 39 seconds The three factors that matter most to an industrial company's long-term competitiveness are converging in our favor simultaneously, 11:48 11 minutes, 48 seconds growing domestic demand, local manufacturing depth, making integration a competitive mode rather than a cost 11:58 11 minutes, 58 seconds and the and at the center of the opportunity sits a company that has built the hard things. 12:04 12 minutes, 4 seconds 9.5 gawatt of model manufacturing at scale and soon going to be ramping up to 15.5 gawatt. A technology platform which 12:14 12 minutes, 14 seconds has transitioned well to end type a well established customer base and a clear integration road map. 12:22 12 minutes, 22 seconds Let me now give a update on our project execution. Our execution capability is best illustrated by Wala which is in our 12:32 12 minutes, 32 seconds view one of the fastest green field module manufacturing builds of this scale in India. 12:39 12 minutes, 39 seconds We took the 5 gawatt facility from ideation to commissioning in under 9 months. 12:45 12 minutes, 45 seconds Beyond the timeline, the project delivered measurable operating gains, lower manpower intensity, faster line 12:52 12 minutes, 52 seconds throughut, reduced effect rates from day one. 12:57 12 minutes, 57 seconds Having set a 9-month benchmark and delivered on it, we are now replicating the same playbook at Gungai Total. At 13:06 13 minutes, 6 seconds Gungai Total, the 6 Gawatt module facility is in the final stage of completion with the first module out put on track for June 2026. 13:19 13 minutes, 19 seconds On the 9 gawatt top corn cell facility, civil and PE works are well in advanced stage and on track for completion by 13:27 13 minutes, 27 seconds September 2026 with clean room and MEP completion in October. 13:33 13 minutes, 33 seconds Equipment installation is sequenced across October and November. The power infrastructure which CMS is executing for us is scheduled for commissioning in 13:42 13 minutes, 42 seconds November. Utilities build out following December. We anticipate the first sellout end December early January 13:50 13 minutes, 50 seconds followed by a sequential commissioning through March 2027 and a subsequent production ramp up during Q2 FY28. 14:01 14 minutes, 1 second What separates Vicram Solar in the cycle is a deliberate technology first capital allocation philosophy. 14:08 14 minutes, 8 seconds 20 years of execution through very through every meaningful technology pivot the industry has been through from 14:15 14 minutes, 15 seconds multicrystine to monopol to entire top has taught us that the cost of choosing the wrong vintage of equipment is paid 14:24 14 minutes, 24 seconds for the entire operating life of the asset. 14:27 14 minutes, 27 seconds We have made our peace with that lesson and build our capex strategy around it. 14:32 14 minutes, 32 seconds Concretely, we have placed orders for the cell equipment all belonging to the latest top one plus generation with 14:39 14 minutes, 39 seconds efficiency enablers built in from the outside to deliver a meaningful markup over the industry baseline and they 14:47 14 minutes, 47 seconds translate directly into a higher W peak per cell more consistent module performance and better realizations over 14:54 14 minutes, 54 seconds time. Our next 3 gawatt of cell capacity will be of a superior technology with incremental efficiency in the subsequent year. 15:04 15 minutes, 4 seconds In the closing, I would like to give my out outlook on where we will be in the next three years. 15:12 15 minutes, 12 seconds Fast forward 3 years and the picture for me is straightforward. 15:17 15 minutes, 17 seconds different solar will be operating its 6 gawatt wafer in the facility which will scale up to 12 gawatt by FI30. 15:25 15 minutes, 25 seconds It will be operating its 12 gawatt cell facility 15.5 gawatt module capacity fully integrated technology current and 15:34 15 minutes, 34 seconds one of a small handful of serious fullstack manufacturers in India. 15:40 15 minutes, 40 seconds Against this we have an industry that will have rationalized to roughly 80 to 100 gawatt of sustaining capacity and a similar demand envelope. 15:50 15 minutes, 50 seconds That is the company we are building and the records we have set this quarter are the first visible markers of that trajectory. 15:58 15 minutes, 58 seconds You will see it take shape quarter by quarter as we go forward. 16:03 16 minutes, 3 seconds Thank you. And with this I will hand this over to Ranger for a financial walk through. 16:08 16 minutes, 8 seconds Yeah. Thank you Samir and good morning and thank you everyone for joining us. 16:13 16 minutes, 13 seconds I'm accompanied by Reinel Sha from our investor relations team along with our advisers go India. Our Q4 and full year 16:20 16 minutes, 20 seconds 26 earnings presentation has been uploaded on the exchanges. FI26 has been a strong year for victim solar with a solid Q4 closing out a record full year. 16:31 16 minutes, 31 seconds Every key metric be it revenue volumes AITA pack has reached an all-time high during the year. The company delivered 16:39 16 minutes, 39 seconds record revenue of 4,800 crores up by 40% year-onear. This was supported by sales 16:45 16 minutes, 45 seconds volume of 3.3 gawatt a 76% increase from 1.9 gawatt the previous year. Crossing 16:53 16 minutes, 53 seconds the 3 gawatt shipment mark in a single year is the first forum solar which places us among the leading Indian solar 17:00 17 minutes manufacturers. A beta for the year recorded at 917 crores with margins expanding to 19%. A 500 basis points increase over 14% in FY25. 17:12 17 minutes, 12 seconds This reflects the operating leverage we have spoken about as our expanded capacity has come on stream now. Profit 17:19 17 minutes, 19 seconds after tax for the year was at 47 crores a 10% margin. It is a meaningful milestone and one we can expect to uh 17:27 17 minutes, 27 seconds the platform to build on consistently from here. Q4 was a strong quarter and a fitting close to the year. As Sunny 17:35 17 minutes, 35 seconds mentioned, we touched a 1 gawatt quarterly run rate for the first time providing a useful operating baseline going into FI27. 17:43 17 minutes, 43 seconds Revenues for the quarter were at 1450 crores up by 31% sequentially with AITA at 235 crores at a 16% margin and PAT at 17:53 17 minutes, 53 seconds 110 crores. Our balance sheet is in a very strong position. The networking capital cycle has compressed from 82 18:00 18 minutes days in FI25 to 44 days in FI26, reflecting tighter receivable management, more disciplined inventory 18:08 18 minutes, 8 seconds deployment and timely cash generation of the scale platform. 18:13 18 minutes, 13 seconds Importantly, the company carries no long-term debt. Working capital net debt at just rupees 64 crores and a net 18:20 18 minutes, 20 seconds equity ratio of 0.03 03 paves the way for the next phase of our capex cycle from a position of financial strength and flexibility. 18:30 18 minutes, 30 seconds During the year we crossed a 10 gawatt cumulative global model deployment. This represents over 25 million module supplied supporting power generation for 18:39 18 minutes, 39 seconds more than 5 million homes in India. We have scaled from 5 gawatt to 10 gawatt in just two years reflecting steady 18:46 18 minutes, 46 seconds execution in such policy supportive environment. Our order book stands at 8.2 gawatt as 31st March 26 providing revenue visibility for the next fiscal. 18:58 18 minutes, 58 seconds The mix is anchored by IP at 69% CI at 13%, government and EPC at 18%. This balanced 19:07 19 minutes, 7 seconds composion gives us good visibility, quality counterparties and the flexibility to direct production towards the most attractive segments as the 19:15 19 minutes, 15 seconds cycle evolves. Through it all, our business model held up exactly as designed. Long-standing relationships 19:23 19 minutes, 23 seconds that do not move on every price tick and that allowed us to hold blended relation steady. Approximately 80% of our order 19:31 19 minutes, 31 seconds book carries sell price pass through clauses insulating the PL from any input volatility and as volume scaled per watt 19:40 19 minutes, 40 seconds overhead came down 16% on a fullear basis. The result, stable margins, a more diversified mix, a stronger 19:48 19 minutes, 48 seconds operating leverage, and a clear demonstration that we will build to grow through cycles, not just in the benign 19:55 19 minutes, 55 seconds months. In short, FI26 has delivered record growth, record profitability, and a healthy balance sheet, a solid 20:02 20 minutes, 2 seconds platform to engage with what is unfolding in the broader market. Let me place these results in the context of the indust industry backdrop. 20:12 20 minutes, 12 seconds FI26 has been by multiple measures the most consequential year in India's solar industry and a defining year for victim 20:19 20 minutes, 19 seconds solar as well. The demand numbers tell their own story. Utility scale projects led the charge with a record 34 gawatt 20:26 20 minutes, 26 seconds of additions in F26 the highest ever in a single year while rooftop solar crossed a milestone of its own at 8.5 20:34 20 minutes, 34 seconds gawatt powered by the rapid uptake of the PM surar together with the broader distributed segment under PMU India's overall 20:42 20 minutes, 42 seconds capacity built for the year reached unprecedented levels this is no longer an incremental growth it is a structural reset of India's energy architecture and 20:51 20 minutes, 51 seconds is happening in reality Now FI26 spared the strongest demand environment India's solar industry has 20:58 20 minutes, 58 seconds ever seen with a few cycle cyclical supply side business. The kind of a cycle is scaled integrate manufacturer 21:06 21 minutes, 6 seconds is built to absorb. We navigated it from a position of strength. Bell cost moved up during the year on higher seller 21:13 21 minutes, 13 seconds prices and the removal of China's export VA wat rebate and the domestic manufacturing ecosystem continue to scale naturally bringing more 21:21 21 minutes, 21 seconds competitive pricing dynamics these are familiar features of an industry in rapid expansion the ones we have managed 21:28 21 minutes, 28 seconds through multiple cycles for FI27 from a market standpoint demand continues to be anchored in nonDCR in the near term 21:37 21 minutes, 37 seconds while gradually transitioning towards DCR solar strategy is to participate meaningfully across both the segments 21:44 21 minutes, 44 seconds going forward supported by a favorable multi-year demand outlook. While our production will continue to be predominantly aligned to the non-digital 21:52 21 minutes, 52 seconds market in the current year, we have also proactively positioned ourselves for the emerging PCR opportunity including through a 2 gawatt procurement agreement. 22:02 22 minutes, 2 seconds We see strong structural tailwinds going forward. Over 80 gawatt of grandfather nonBCR demand over the next two years 22:09 22 minutes, 9 seconds along with approximately 28 gawatt of live utility scale DCR tenders providing a robust runway for the core utility 22:16 22 minutes, 16 seconds segment and around 25 gawatt of inherent DCRdriven by CNI and rooftop segments. 22:25 22 minutes, 25 seconds Put simply, the demand environment is the strongest and most durable we have seen. The policy framework is moving decisively in favor of integrated 22:33 22 minutes, 33 seconds domestic manufacturers and different solar enters this phase with the order book, the customer franchise and the balance sheet to capture more than our fair share of it. 22:46 22 minutes, 46 seconds The natural question then is how we convert this once in a cycle opportunity into long-term defensible market leadership. That is the lens through 22:54 22 minutes, 54 seconds which our capex strategy has been built and how our thinking has evolved over the last year. Let me lay out our 23:01 23 minutes, 1 second integrated capacity road map. On the module front, we are at 9.5 gawatt today, scaling to 15.5 once Gangai Kundan 6 gawatt model plant commissions. 23:12 23 minutes, 12 seconds Our 9 gawatt topcon cell plant is on track for phase commissioning through Q4 F27 with the first cell rolling out in 23:19 23 minutes, 19 seconds December 26 taking us to roughly 70% of backward integration. A further 3 G cell is planned in FI28 completing the cell 23:28 23 minutes, 28 seconds stack and taking us to a full cell level integration. Moving on to the next phase of our integration journey of the 12 Gawatt vapor and facility. We plan to 23:37 23 minutes, 37 seconds add the first phase of 6 kilowatt at the existing site at Gangai. The investment of which was approved at the board meeting yesterday with an expected 23:45 23 minutes, 45 seconds outlay of approximately 3,700 crores and commissioning in FY29. 23:51 23 minutes, 51 seconds This addition turns Gangai into a single integrated solar manufacturing campus to module with zero transport cost between 24:00 24 minutes fabs, zero transmit transit damages and no inventory buffers between stages of the value chain. The structural cost and 24:07 24 minutes, 7 seconds quality advantage is significant. The journey for the 15 gawatt hour best capacity has also kickstarted where in a 24:14 24 minutes, 14 seconds 5 gawatt cell to pack facility is scheduled to commission by March 27 followed by the first phase of 7.5 gawatt hour of battery cell 24:23 24 minutes, 23 seconds manufacturing to commission in February 29 and the second phase in FY30. 24:30 24 minutes, 30 seconds The app for capex programs shall be met with a disciplined mix of debt and equity. Capital providence is non-negotiable. We are committed to 24:38 24 minutes, 38 seconds operate within farm guard rails through the entire investment cycle maintaining interest and debt service coverage ratios about 2.5 and the net debt equity 24:47 24 minutes, 47 seconds below 1.5 even at the point of peak debt draw down. The phasing of capex the sequencing of the branches and the 24:55 24 minutes, 55 seconds buildup of internals have all been calibrated to stay comfortably within this limits. Growth ambition will not come at the cost of balance sheet recipient. 25:05 25 minutes, 5 seconds To summarize, as we close out what has been historic year for the company and for the Indian solar industry, I want to leave you with four tier and durable 25:13 25 minutes, 13 seconds takeaways from today's calls. The earnings base is real. Record revenue, record margins, double digit pack, and a 25:20 25 minutes, 20 seconds strong balance sheet with no long-term debt. The platform has already proved it can generate the cash to fund what comes next. Order book strength, repeat 25:29 25 minutes, 29 seconds customer depth, demand visibility across segments and a consistent track record of operational execution is the foundation on which our cash flow 25:38 25 minutes, 38 seconds projections rest. Secondly, in this environment, scale alone is no longer sufficient. Integration, technology 25:45 25 minutes, 45 seconds alignment and execution and customer competence are becoming the defining factors for long long-term competitiveness. We solar focuses on all 25:54 25 minutes, 54 seconds these pillars to ensure sustainable growth. 25:58 25 minutes, 58 seconds Thirdly, capex is financed through well ststructured diversified mix. The facing of actual spends and the sequencing of financing branches are designed so that 26:08 26 minutes, 8 seconds no single source including internal tools be a disappointed burden in any given year. And fourthly, victim solar 26:16 26 minutes, 16 seconds is building the platform for for long-term market leadership from 12 megawatt in 2009 to 15.5 gawatt of 26:23 26 minutes, 23 seconds modules in Q127. From a private company to a public listed company with an A+ grade profile, this is a company that 26:31 26 minutes, 31 seconds has consistently turned ambitions into execution. The investment we are making today is the foundation for a competitive position that will be 26:39 26 minutes, 39 seconds defensible for the decade ahead. With that we will be happy to take your questions. Thank you. 26:47 26 minutes, 47 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 26:55 26 minutes, 55 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are 27:04 27 minutes, 4 seconds requested to use handsets while asking a question. Please note in order to ensure that the management will be able to 27:12 27 minutes, 12 seconds address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. 27:22 27 minutes, 22 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 27:45 27 minutes, 45 seconds The first question is from the line of Sahil S from Anendraati Institutional Equities. Please go ahead. 27:51 27 minutes, 51 seconds Hi, thank you for taking my question. So my first question would be on our 2 gawatt domestic scale we are procuring from international. 28:00 28 minutes I'm sorry to interrupt sahil your voice is mful. Can you use your handset mode please? Am I audible now? 28:07 28 minutes, 7 seconds Yeah please proceed. Thank you. My first question would be on the 2 Gawatt domestic cell we are procuring from Jupiter International. From when can we 28:16 28 minutes, 16 seconds start to see the DCR module starting uh roll out from our uh manufacturing facilities? Uh 28:27 28 minutes, 27 seconds the recommended time with Jupiter has been placed in such a manner that I'm sorry to interrupt sir. So can you please repeat? 28:35 28 minutes, 35 seconds You are not audible. Hello. Okay. Am I audible now? Yeah, please. Thank you, Sashid. 28:42 28 minutes, 42 seconds Thank you, S. So, the agreement we have signed for the procurement of sale has been placed in a manner to take care of the DC demand which will kick in post uh 28:52 28 minutes, 52 seconds the June 26 deadline and uh within uh FI 27 the entire uptake uh with a ballooned uptake in the H2 is going to pan out. 29:03 29 minutes, 3 seconds Okay, got it. And so my second question would be on the capeex front. Now that we have uh for our 9 gawatt cell 29:11 29 minutes, 11 seconds facility, we are now procuring machinery direct from China versus our previous plan to import it from Thailand. What would be the capeex differential between 29:19 29 minutes, 19 seconds those plans and if you can pan out the capex schedule for FI27 and FI28? 29:26 29 minutes, 26 seconds So uh there was a change in the plan as we discussed uh it was a 10% cost increase. Uh so the overall uh cell 29:34 29 minutes, 34 seconds capex for the 9 gawatt would be at uh 5,400 crores of which uh as you know 29:42 29 minutes, 42 seconds that the since the commissioning is being done between December 26 to March 27 uh the deployment for the capex will almost go in fully in the current year 29:50 29 minutes, 50 seconds barring the last 10% installment which will uh switch on to FY28. 29:58 29 minutes, 58 seconds Okay. And sir for uh the best component when would the capeex start? 30:04 30 minutes, 4 seconds So uh the assembly uh for the 5 gawatt tower uh would cost about 150 crores which will be spent majorly in the current year. On the cell manufacturing 30:14 30 minutes, 14 seconds we expect to start the construction somewhere in October 26 with the 24 months of construction period. So this financial year will uh majorly see the 30:22 30 minutes, 22 seconds amount towards landing initial expenses uh which we don't see more than 200 crores. 30:29 30 minutes, 29 seconds Okay. Got it sir. 30:32 30 minutes, 32 seconds And sir uh on the vapor ingot capex again wafer inert as the commissioning 30:39 30 minutes, 39 seconds of the first phase of 6 gawatt which is planned to commission in March 28. Uh the construction also is expected to 30:46 30 minutes, 46 seconds start in Q 2 Q3. The same concept applies here but since you already have the land in place at GK uh the initial 30:54 30 minutes, 54 seconds spending for few advances to the suppliers within 100 crores. Okay. 31:01 31 minutes, 1 second And so what about the balance gawatt of the wafer would that incur similar amount of KF yeah so the thumb rule of about 600 crores per gawatt applies there as well. 31:12 31 minutes, 12 seconds We intend to take the board approval for that in the subsequent financial year. 31:17 31 minutes, 17 seconds Okay. That was quite helpful. Thank you and all the best. 31:23 31 minutes, 23 seconds Thank you. Next question is from the line of Ankur Gulati from January Capital. Please go ahead. 31:33 31 minutes, 33 seconds Ankur, your line is unmuted. Yeah. Hi. Audible. Hello. You're audible. Please proceed. 31:41 31 minutes, 41 seconds All right. Thanks. Quick question, sir. 31:43 31 minutes, 43 seconds uh some of your peers have been um uh expanding across vertically or horizontally. So any thoughts on on more 31:52 31 minutes, 52 seconds forward integration or or horizontal integration? 31:58 31 minutes, 58 seconds Uh let me take that question. At this point of time we are completely focused on uh backward integration on the module 32:06 32 minutes, 6 seconds and uh expanding into best. Uh at this point of time we are uh not thinking anything beyond that. 32:15 32 minutes, 15 seconds Sir if you can double click on your best expansion plans please. 32:21 32 minutes, 21 seconds As Ranjin mentioned we are beginning with the best assembly and then uh we are going to backward integrate into cell 32:30 32 minutes, 30 seconds manufacturing. He has already uh answered the question. 32:36 32 minutes, 36 seconds All right. Okay. Thanks all of us. 32:43 32 minutes, 43 seconds Thank you. Next question is from the line of Anjach Capell from Taurus Mutual Fund. Please go ahead. 32:50 32 minutes, 50 seconds Hello. Am I audible? You're audible. Yes sir. 32:55 32 minutes, 55 seconds Yeah. Thank you for the opportunity. So my question is uh what was the sequential movement in key raw material cost during uh quarter 4 especially for 33:03 33 minutes, 3 seconds the cells glass EVA and back sheet and aluminum flames. And second question is what is the current inventory holding period for the critical raw materials. 33:15 33 minutes, 15 seconds So Anoj right? 33:17 33 minutes, 17 seconds Yes. Yeah. Ano we experienced some increase in the crude oil which impacted the EVA cost. The aluminium frame cost 33:26 33 minutes, 26 seconds has also gone up with the aluminium cost per ton going from 3,100 per ton to 3,600. 33:33 33 minutes, 33 seconds But that was partly compensated with the corresponding fall in sale prices. So the current quarter does not see much impact of this increase. On the uh on 33:42 33 minutes, 42 seconds the second part uh with the WLAM facility coming in yes we have increased the inventory levels uh as a company we do maintain an inventory of uh 30 days 33:51 33 minutes, 51 seconds at the plant level uh with about uh 60 days at the vendor and the on waters level. So that is what the overall cycle 33:59 33 minutes, 59 seconds we follow and as also mentioned in my speech uh that on the overall working capital cycle we have brought it down to 44 days which is net of the credits available from the payables. 34:11 34 minutes, 11 seconds Okay thank you sir. 34:16 34 minutes, 16 seconds Thank you. Next question is from the line of Koshikoshi from ICIC securities. Please go ahead. 34:24 34 minutes, 24 seconds Yeah. Thank you for the question. My first question is does the 1.9 gawatt order inflow include the distribution part? 34:34 34 minutes, 34 seconds The order inflow does not include distribution. Uh we have taken that out of order booking uh format. 34:44 34 minutes, 44 seconds Okay. Uh and sir, why were the distribution orders removed from the order book? 34:51 34 minutes, 51 seconds uh see most of our distribution was in nonBCR segment and uh we were running a 34:58 34 minutes, 58 seconds uh referring order book with them. Uh that was a arrange inment with the distributors. Now since it is moving to 35:05 35 minutes, 5 seconds BCR and we are currently this year we are going to operate on a uh outsourced uh sell supplies. So we have changed the 35:13 35 minutes, 13 seconds format to um u you know spot buying by distributors instead of a recurring order book. 35:22 35 minutes, 22 seconds Okay sir. Got it. Uh and sir my next question is 6 gawatt capacity addition is not done yet. If you could highlight the reason behind that. 35:32 35 minutes, 32 seconds Sorry if we could not get you. Can you please repeat? 35:36 35 minutes, 36 seconds Uh my question was 6 gawatt capacity addition is not done yet. if you could highlight the reason behind that. 35:44 35 minutes, 44 seconds Yeah, it's intact. So, it continues to uh commission uh within June and the schedule is intact. 35:55 35 minutes, 55 seconds Okay sir. Got it. Uh I will get back to line. Thank you and 36:03 36 minutes, 3 seconds thank you. Next question is from the line of Akai from UBS. Please go ahead. 36:09 36 minutes, 9 seconds Hi sir, thank you for the question and congratulations on strong ramp up in production order book and healthy cash translation through the year. My 36:16 36 minutes, 16 seconds question is related to BASS sir in presentation you have highlighted DCR mandate for BASS targeting 60% localization so in your view how would 36:25 36 minutes, 25 seconds policy will target this and how much the cell cost for BASS bomb and how much localization can be achieved just 36:32 36 minutes, 32 seconds through assembly including containers electronics BDS etc. Uh that's the question sir 36:40 36 minutes, 40 seconds a we are extremely optimistic on the policy mandate on bash considering it is going to be an integral part of their 36:48 36 minutes, 48 seconds grid stability uh mandates with solar becoming uh as large as an installed wave as it is today. Uh these are 36:56 36 minutes, 56 seconds indicative numbers uh given by CEA uh and the ministry of heavy industry. uh we are uh in addition uh to the 37:04 37 minutes, 4 seconds globalization mandate we are also uh looking at uh and anticipating a similar policy uh on uh approved list of battery 37:13 37 minutes, 13 seconds manufacturers there is already an advanced chemistry uh PLI on the demand side uh the government has done enough 37:21 37 minutes, 21 seconds uh laid out an RA of about 80,000 crores on the viability gap funding through which we already have a pipeline of uh 37:28 37 minutes, 28 seconds best tenders to the extent of about 100 kilowatt hours ready uh in various uh RFP as well as uh good submission stage. 37:37 37 minutes, 37 seconds So uh the next uh two to three years we will see uh an extremely uh positive uh 37:44 37 minutes, 44 seconds policy movement uh and the economics uh of uh the cell and upstream components uh will pan out accordingly. 37:55 37 minutes, 55 seconds Uh got it. Thank you. Uh yeah that's all. Thank you. 38:03 38 minutes, 3 seconds Thank you. Next question is from the line of Pavin Sahai from PL Capital. Please go ahead. 38:10 38 minutes, 10 seconds Yeah, thank you for opportunity and uh many congratulation on a uh very good set of numbers on topline. Uh my 38:18 38 minutes, 18 seconds question first is on the gross margin uh and uh there uh uh you know there is a contraction uh we had a seen and uh also 38:27 38 minutes, 27 seconds we are seeing that the model realization has declined around 13% in the INF terms uh so can you uh please give some more 38:36 38 minutes, 36 seconds color like uh how much is the realization contraction and the RM inflation how to segregate in the gross 38:44 38 minutes, 44 seconds margin contraction and uh secondly where you will see this realization to be uh in the coming year. 38:54 38 minutes, 54 seconds So Samit let me uh first give you uh a comparison as to how what Q3 and Q4 on a 39:01 39 minutes, 1 second per week basis appear to be. Uh in fact uh the relations have actually gone up uh in Q4 uh by about uh 60 pesos. uh 39:11 39 minutes, 11 seconds whereas uh the cost as I told in my previous question uh by virtue of uh the impact of the war coming in the cost 39:18 39 minutes, 18 seconds actually went up by 80 pesos. So that 20 plus additional incremental cost has uh dented the per unit AITA by by to that 39:27 39 minutes, 27 seconds extent and hence you could see a slight what is a percentage impact on the AITA margin level. But as we have already 39:34 39 minutes, 34 seconds mentioned in our remarks uh earlier uh this business we focus on a perita basis and we see some more rationalization to 39:43 39 minutes, 43 seconds come in in the uh quarters to come but with the scale coming in uh the absolute numbers uh are expected to increase. 39:52 39 minutes, 52 seconds Okay. Uh second question is related to the uh 2 gawatt procurement. 39:58 39 minutes, 58 seconds uh do you have any uh you know any anything uh finalized on the pricing or the spread uh to be shared with the companies. 40:10 40 minutes, 10 seconds So uh this is something which uh it will be unwise for us to share the commercials but I can only assure you uh 40:17 40 minutes, 17 seconds that the commercials are being arranged such that the beta per what expectation of the company is maintained. 40:25 40 minutes, 25 seconds Okay. uh at the uh on the order book side uh 1 gawatt on the distribution 1.5 40:32 40 minutes, 32 seconds on the CNI uh and I understand because of this uh the non-BCR to the maybe VCR 40:40 40 minutes, 40 seconds so how you are uh you know the confident of gaining back uh these numbers and also if you can give some clarification 40:47 40 minutes, 47 seconds on 6a out of a US order uh with uh sal so uh where we we can see these these 40:55 40 minutes, 55 seconds numbers to come in basically distribution in the CNI 41:03 41 minutes, 3 seconds uh see uh as uh the mandate moves to DCR uh the large chunk of nondcr all all of 41:12 41 minutes, 12 seconds the nondcr distribution will move to DCR uh because of this policy shift same thing is or similar is happening in CNI 41:21 41 minutes, 21 seconds so uh that is the reason why we have removed uh the ruling 1 gawatt order book which you are carrying from distribution. 41:29 41 minutes, 29 seconds On the CNA side uh there is a large uh order book which we have is switching to DCR and it has gone into renegotiation. 41:38 41 minutes, 38 seconds Uh so we want to optimize uh our margins on the DCR portfolio because of the limited supply we have and that is why 41:47 41 minutes, 47 seconds we have taken them out of our current auto book. those are under renegotiations and if they fit our margin profile we will account them as 41:55 41 minutes, 55 seconds fresh bookings. So that's the approach we have taken and to add to that distribution still remains a very stronghold uh and an area 42:05 42 minutes, 5 seconds of focus for us. Uh as you see we have expanded our distribution network to about 110 plus 42:12 42 minutes, 12 seconds 550 plus of dealers and system integrators who are uh exclusive to uh victim solar. So even with nonBCR we did 42:22 42 minutes, 22 seconds about uh 20% of our volume last year uh through the distribution channel and that number is only going to multiply now that we have the procurement deal 42:31 42 minutes, 31 seconds for the DCR. So it is just a way of reporting that has changed. uh as to your export question uh that particular 42:38 42 minutes, 38 seconds project in question uh was deemed unviable by the IPCP because of sunset of certain incentives uh in the US 42:45 42 minutes, 45 seconds market for the IP itself which is why we've removed it from the order book. 42:50 42 minutes, 50 seconds Okay. Uh last one clarification uh is there any DCR volume in this quarter? 43:02 43 minutes, 2 seconds So hardly any volume. So the main occupancy has been on the DCR non DCR front. Uh FI27 as Real and Samir 43:10 43 minutes, 10 seconds explained we'll see the DCM optic to come in. 43:14 43 minutes, 14 seconds Thank you for uh giving me opportunity to ask question and all the best. 43:22 43 minutes, 22 seconds Thank you. Next question is from the line of Bala Mur Krishna from Oman's investments advisor. Please go ahead. 43:31 43 minutes, 31 seconds Uh hi good morning the question is regarding the debt level earlier plan to have a 3100 debt levels by the end of 43:41 43 minutes, 41 seconds 27. So I think uh by seeing the investor presentation this is the cell we are only sticking to sell facility by S20. 43:52 43 minutes, 52 seconds So so by date end also will be similar level that level side 44:02 44 minutes, 2 seconds you have to repeat the question for us please. 44:06 44 minutes, 6 seconds Yes ma'am. Uh my question is regarding the debt levels. Earlier we had a plan of uh 2,500 low street levels by the end of FI27. 44:15 44 minutes, 15 seconds So I think by the um because the BSF and uh other projects are postponed to FI 44:22 44 minutes, 22 seconds 29. So by by end of FI 28 it's also we'll be at the similar level of debt level right. 44:30 44 minutes, 30 seconds Yeah. So uh when we spoke about a debt level of 3,500 uh the plan was to have entire 12 G of cell in place which we 44:38 44 minutes, 38 seconds have now placed it into two of 9 + 3 but as we also discussed FY 27 will see some outflow for the best and the refer 44:47 44 minutes, 47 seconds business which mainly will be from the internal acrals. So uh the closing debt for 31st March 27 can therefore be considered to be 3,200 crores. 44:59 44 minutes, 59 seconds So by the end of 28 what could be the figure? 45:03 45 minutes, 3 seconds So the capex phase for the uh wafering that will come in more importantly there and uh we expect that to remain at 6,500,600. 45:15 45 minutes, 15 seconds So the question is because uh uh we are incurring around 150 crores of interest 45:21 45 minutes, 21 seconds cost. So um by 27 u could be outflow could be 500 and by 28 it could be 800 45:30 45 minutes, 30 seconds cr. So uh the question is uh the top line will grow for the next two years but and I will also grow accordingly but 45:37 45 minutes, 37 seconds uh the bottom line could be staggered around this 500 levels because of this um interest outflow. Is it a right 45:45 45 minutes, 45 seconds assumption? Uh uh that would be a forward-looking statement but but I can only guide you that uh in the capex period the interest 45:54 45 minutes, 54 seconds for a project is capitalized and it's not charged to the PL. So as you see the commissioning of paper in to come in in 46:01 46 minutes, 1 second say March 29 and the sell on say March 27 uh the PL will have the impact of the component for that debt of an asset which is capitalized. 46:11 46 minutes, 11 seconds Could I answer that? Yeah. Yeah. Thanks. 46:15 46 minutes, 15 seconds So on the order book uh secondly on order book front so uh we are under negotiation of converting from non DC to 46:23 46 minutes, 23 seconds DC. So how would be this uh mix could be in F27 by end of FI 27 and FIA 28? 46:35 46 minutes, 35 seconds Yeah. Can you can you say that again please? Yeah. Auto book on the order book front. 46:40 46 minutes, 40 seconds So we are negotiating some nondeser orders to DCR. So how do you see this uh mix between this year and non this year 46:48 46 minutes, 48 seconds by fi 27 and fi 28 and so non DCR uh segment will operate in 46:57 46 minutes, 57 seconds those grandfather projects of 87 gawatt uh so depending on how they get finished 47:05 47 minutes, 5 seconds uh or get executed over next two years uh that will determine the non-dcr order book rest everything will move to DCR 47:15 47 minutes, 15 seconds Thank you. Next question is from the line of Deepak Perswani from Swan Investments. Please go ahead. 47:24 47 minutes, 24 seconds Hi. Uh good morning and congratulations for good setup numbers. Uh firstly s to 47:31 47 minutes, 31 seconds check it out. uh since there has been a uh ramp up in in terms of the capacity 47:38 47 minutes, 38 seconds for the module to 9.5 and eventually moving to the 15.5 over the next 3 4 months. 47:46 47 minutes, 46 seconds Uh if I were to look into the production front year as a whole we should be uh in terms of the production we would be 47:54 47 minutes, 54 seconds close to 7.5 or 8 gawatt versus 3.2 gawatt DCL. 48:00 48 minutes Now in this context if you can give us broader sense what would be our sales strategy in this context because if I were to look into the current order book 48:08 48 minutes, 8 seconds currently we have a 8 gawatt order book what would be the execution out of this in this year and what would be the 48:17 48 minutes, 17 seconds incremental sales strategy we would be looking out okay thanks Deepak uh so I'll just try 48:24 48 minutes, 24 seconds to give us to what the overall plan for F27 is and then we can see whether the question has been answered 48:30 48 minutes, 30 seconds FY27 collectively with the 6 G module coming uh is expected to produce 48:37 48 minutes, 37 seconds collectively for the company as a whole uh some 8 GT of which as we discussed 2 Gawatt will be on the DCR front and the 48:46 48 minutes, 46 seconds balance six on the non DCR uh so we have an auto book of 8.2 as on 31st March 26 of which uh 7.2 two is 48:55 48 minutes, 55 seconds domestic of which six goes out uh as we discussed which therefore leaves us with an order book of 1.2 with a whole year 49:03 49 minutes, 3 seconds left over uh part to take share of the 87 Gawatt uh grandfathered which Sami highlighted in the previous question uh 49:11 49 minutes, 11 seconds to then build up for some volumes for F28 as well. 49:18 49 minutes, 18 seconds Okay. Thank you and wish you all the best. 49:23 49 minutes, 23 seconds Thank you. Next question is from the line of Bhavna Jane from Aaga Capital Advisor. Please go ahead. 49:31 49 minutes, 31 seconds Uh uh am I audible? Yes, you are. Yeah, thank you for taking my question. 49:38 49 minutes, 38 seconds First of all, congratulations for the good set of numbers. I have a question on the margin front. Uh just repeating 49:46 49 minutes, 46 seconds what the previous participant asked. uh uh what is the AIDA per what peak we are making as of now where we don't have any DCR module. 50:00 50 minutes So as I discussed quarter 4 experienced number of 2.35 with the uh with the PCR 50:07 50 minutes, 7 seconds mandate getting stipulated strictly from say June 26 we are encountering some uh optimization on the AITA per week 50:14 50 minutes, 14 seconds further. uh so we therefore believe that for the year as a whole uh the nonBCR volume should deliver and a bit of perp 50:22 50 minutes, 22 seconds at 1.75 to2 uh throughout the average on an average basis 50:29 50 minutes, 29 seconds okay and uh after the integration of cells how much is our expectation it will go to 50:37 50 minutes, 37 seconds so we believe that uh 1.75 stroke 2 uh at least for FI28 uh should deliver about 5 rupees for 50:45 50 minutes, 45 seconds what presently is at six. So with more of casualties coming in, we expect that to trim down by one more rupee in 20 28. 50:53 50 minutes, 53 seconds Okay. By 28 we can expect that. I mean you're expecting all that even after the industry over capacity or the 51:00 51 minutes insufficient cell capacity makes it up including all that right I mean I hope that all factors are considered or we expect something. 51:11 51 minutes, 11 seconds Yeah. His opening remarks highlighted that on a country level with full integration with the top 15 20 players who are going to rule the game what 51:20 51 minutes, 20 seconds would be the country level supply and the demand post that on a uh stabilized basis we think that revenues that epitap 51:26 51 minutes, 26 seconds are what we can continue okay sure thanks for that answer uh there is one question about the 51:33 51 minutes, 33 seconds utilization level so at least by fi 27 after the module and the best or all 51:40 51 minutes, 40 seconds those whatever we are completing by FI27. What is the utilization level? We think we'll achieve 51:49 51 minutes, 49 seconds on an average for module we expect on a name plate basis about 65% to 70% to be uh a standard utilization and for cell 51:59 51 minutes, 59 seconds that number is higher between 70 to 75% on name plate. I'm not talking about effective but clear on the name plate. 52:08 52 minutes, 8 seconds Okay. Okay. Thanks. Uh just one last question just curious about this technology uh that we are using for the 52:16 52 minutes, 16 seconds cell parting uh right now all the competitors that we see are applying the 52:22 52 minutes, 22 seconds HJT technology for uh the manufacturing and we are adopting the XBC1. 52:29 52 minutes, 29 seconds Um first question is uh I mean do we see any profitability improvement by choosing this new 52:38 52 minutes, 38 seconds platform? Uh second is do we expect uh higher capex for a new technology? 52:46 52 minutes, 46 seconds I mean both of them correct the industry uh dominant technology currently is endtop in both 52:55 52 minutes, 55 seconds cell as well as module. AJ is the technology used by one of the larger payers with a limited capacity and this 53:03 53 minutes, 3 seconds is true for uh global uh average as well. What we are setting up currently 53:10 53 minutes, 10 seconds in our uh first phase of cell plant of 9 kilowatt is also NOCON but it's a topon 53:18 53 minutes, 18 seconds plus with incremental couple of processes which gives a leg up in efficiency over the industry baseline currently established at 25.2%. 53:29 53 minutes, 29 seconds So with the use of these processes uh what it does is uh takes the efficiency level up to say 25.4 or 25.5%. 53:40 53 minutes, 40 seconds Which basically helps us create more wattage in modules and hence translates to better per realization. 53:49 53 minutes, 49 seconds So currently our uh defect cost is also very in line with the industry. Uh the numbers have been published. 53:58 53 minutes, 58 seconds Great. Uh just last question if I can squeeze in. uh what is the company's expected silver consumption reduction 54:06 54 minutes, 6 seconds the the future road map you know because that's an area of concern which most players have been talking about 54:15 54 minutes, 15 seconds right so like I mentioned the top plus uh cell setup that uh we are uh establishing uh uses a process called 54:24 54 minutes, 24 seconds leo which uh anyway uh reduces the silver consumption because of the thinner our silver fingers going ahead 54:33 54 minutes, 33 seconds on our road map or in our R&D and applied research. We have projects uh 54:39 54 minutes, 39 seconds which uh uh helps us replace or reduce silver consumption but it's too soon to 54:46 54 minutes, 46 seconds tell. There are various technologies uh being uh researched about at a global level in established labs that we have 54:54 54 minutes, 54 seconds collaboration with. But uh at a commercial scale uh these are the couple of practices that have helped us uh reduce the silver consumption for the industry as a whole. 55:04 55 minutes, 4 seconds Uh great thank you. Thank you so much for all the answers. Thank you. 55:11 55 minutes, 11 seconds Thank you. Next question is from the group Machal from HTFC AMC. Please go ahead. 55:18 55 minutes, 18 seconds Uh yes sir. Thank you so much. Uh sir I just had a uh question uh that um until the uh utility scale DCR norms you know 55:26 55 minutes, 26 seconds practically start kicking kicking in which in my expectation probably sometime in FI28 or some early FI29 where your new cell capacity is well 55:34 55 minutes, 34 seconds timed to you know probably commission until that time uh just the CNI market DCR and the rooftop uh DCR market 55:42 55 minutes, 42 seconds probably uh and versus the uh cell capacity production which is there available in India. It seems the market is relatively well balanced or to some 55:50 55 minutes, 50 seconds degree over supplied the sell market. So in that context given your brand power given your you know scale and reach. I'm 55:58 55 minutes, 58 seconds wondering um are you not able to optimize better on this uh relatively well balanced DCR sell market uh to you 56:05 56 minutes, 5 seconds know use your modules and sell more. I'm just trying to understand how is this working out. 56:12 56 minutes, 12 seconds Sure. So through uh with the enforcement in June 26 we see a very staggered buildup of DCR demand. Last year you saw 56:20 56 minutes, 20 seconds about 10 gawatt consumption of DCR. This year with 5 to 6 gawatt of crystal 7 to eight of cm studio earth and another 7 56:30 56 minutes, 30 seconds to8 for CNI for the H2. We expect the DCR demand to be about 20 to 25 gawatt. 56:38 56 minutes, 38 seconds Now juxtapose that against the uh existing cell phase that is a name plate 56:44 56 minutes, 44 seconds which is currently uh in a ramp up and stabilization phase and hence the output given by all of the large players is uh relatively lower than the name number. 56:55 56 minutes, 55 seconds So even in fiscal 27 and fiscal 28 where you will have uh another set of utility 57:02 57 minutes, 2 seconds execution demand coming up that will have a much larger uh demand number versus uh what the supply could provide 57:10 57 minutes, 10 seconds even at that point even after newer capacities that will be set up through this year. So yes we are well placed uh with this uh staggered demand setup. 57:21 57 minutes, 21 seconds Okay. So I mean in the Yeah. Sure, let me add see uh we have not been 57:28 57 minutes, 28 seconds participating in the team because we did not have DCR so far. So the flip we are doing uh now is that our distribution 57:37 57 minutes, 37 seconds channel is now very robust, very well established. We have uh well penetrated and it it has expanded further this 57:45 57 minutes, 45 seconds year. we will be able to use the availability of DCR cells for this segment which also gives us better 57:51 57 minutes, 51 seconds margins and that is the reason uh you have seen some of the changes we have done. Sure. 57:57 57 minutes, 57 seconds So yeah we will be able to leverage our brand which has been established very well over the years uh to take a good share and that's it. 58:07 58 minutes, 7 seconds Sure. Got it. This is helpful. Thank you so much and all the best. 58:13 58 minutes, 13 seconds Thank you. Next question is from the line of Nati Dartha from Eloy Financial Services. Please go ahead. 58:20 58 minutes, 20 seconds Uh hi. Yes. Can you hear me? Yes. 58:26 58 minutes, 26 seconds Hello. Yeah. Uh so uh I just wanted to know uh how is the company planning to 58:32 58 minutes, 32 seconds handle uh FY27 with uh reduced margins and uh no captive cell? So like what are the views on that? 58:45 58 minutes, 45 seconds The execution plan as the CFO mentioned would be 75% of nonBCR which will yield 58:52 58 minutes, 52 seconds about 1.75 to2 rupees per watt. Uh we already have uh a procurement deal with a large cell supplier. Uh and that 59:00 59 minutes segment of 25% of the execution plan is also going to yield us a little uh better between two to two and a half 59:07 59 minutes, 7 seconds rupees per watt. And hence uh these uh steady numbers at the scale that people operate in will uh yield uh phenomenal growth over the previous discuss. 59:22 59 minutes, 22 seconds Okay. Okay. And I'm sorry to interrupt. Uh you're not audible ma'am. 59:33 59 minutes, 33 seconds Uh hello. 59:35 59 minutes, 35 seconds Yes. Right now you're audible. Proceed please. 59:37 59 minutes, 37 seconds Yes. Uh so uh I just wanted to know what differentiates Vikram Solar from other big peers in the sector. 59:49 59 minutes, 49 seconds Uh see as as you uh we were saying over the last 20 years we are one of the you know initial players in the segment and 59:58 59 minutes, 58 seconds our uh deep understanding and deep knowledge of the industry. We have translated into putting the right capacities and the right technologies 1:00:06 1 hour, 6 seconds into our products. So that is one differentiator and I think our customer intimacy is very high. our brand's u uh 1:00:16 1 hour, 16 seconds reliability and its quality perception is very high. So those differentiators uh along with all the backward 1:00:24 1 hour, 24 seconds integration we are doing uh they will act as the key enablers for us. 1:00:30 1 hour, 30 seconds Okay. And uh lastly I wanted to know that uh even though we are doing a debt reduction so why has been uh an uh 1:00:38 1 hour, 38 seconds increase in the interest expense sequentially. 1:00:43 1 hour, 43 seconds So uh the the the term load data has come down. Uh the capital debt continues to remain almost at the same same level. 1:00:52 1 hour, 52 seconds But uh the only increase in Q4 financial cost has come in because of the lease rental getting debited uh with WAM 1:00:59 1 hour, 59 seconds facility coming on track which was on an equipment lease finance basis and with the WAM coming in uh the working capital 1:01:07 1 hour, 1 minute, 7 seconds deployment uh has been a bit increased on account of inventory. So that has led to be uh led to have a partial increase in the dance cost as well. 1:01:19 1 hour, 1 minute, 19 seconds Okay. All right. Thank you so much. 1:01:24 1 hour, 1 minute, 24 seconds Thank you. Next question is from the line of Nadesha from ICICA securities. Please go ahead. 1:01:31 1 hour, 1 minute, 31 seconds Uh yes, thank you so much for taking my question. So uh initially we had uh 5 gawatt more of model capacity coming in 1:01:40 1 hour, 1 minute, 40 seconds 2 gawatt in India and 3 gawatt in US. My understanding would be that these um capacities have been scrapped to focus 1:01:47 1 hour, 1 minute, 47 seconds on uh backward integration. uh but um um specifically on the US is there anything 1:01:55 1 hour, 1 minute, 55 seconds uh long-term in the environment that has deterred you from putting capacity there? 1:02:04 1 hour, 2 minutes, 4 seconds Yeah. uh maybe so for the US uh uh like we mentioned in the earlier calls as well uh we've done the ground work uh 1:02:10 1 hour, 2 minutes, 10 seconds with the uh domestic environment and the uh ongoing uh high requirement of uh 1:02:18 1 hour, 2 minutes, 18 seconds traceable supply you know down to the quart level uh it was stringent uh as well as uh you know the availability of 1:02:25 1 hour, 2 minutes, 25 seconds skill power uh in uh US domestic uh uh you know front uh is a challenge which 1:02:32 1 hour, 2 minutes, 32 seconds is why uh you know India has an opportunity opportunity looks infinitely more attractive which is why we are 1:02:39 1 hour, 2 minutes, 39 seconds focusing all of the capital uh uh as well as management bandwidth on scaling our uh existing business in India and uh 1:02:49 1 hour, 2 minutes, 49 seconds uh you know backward integrating uh also another question on the US uh since November um India's exports to the 1:02:57 1 hour, 2 minutes, 57 seconds US be it cells or models had completely zeroed out uh we currently have about 1 gawatt of uh orders from the US, how sec 1:03:07 1 hour, 3 minutes, 7 seconds or exports in general, how secure are these orders? Can we expect these orders to be executed or is there a chance that 1:03:14 1 hour, 3 minutes, 14 seconds these could be erased from the order book? And if uh you know execution is at play and where are we procuring these 1:03:21 1 hour, 3 minutes, 21 seconds cells from what are the countries that we're looking at procuring from? 1:03:27 1 hour, 3 minutes, 27 seconds You're right. the uh exports from the Indian domain uh to the US have uh slim to almost negligible levels. Uh the 1:03:35 1 hour, 3 minutes, 35 seconds current uh export order book that we carry uh is with uh reputed ITPS that they worked uh in the past. Uh these are 1:03:43 1 hour, 3 minutes, 43 seconds long-term conversations and we still believe uh we will be able to execute them. we are working on uh getting a 1:03:50 1 hour, 3 minutes, 50 seconds traceable uh compliant uh supply chain which uh does not have uh any prohibitive uh uh tariffs or duties 1:03:58 1 hour, 3 minutes, 58 seconds applied to it. Most of the countries that we're looking at uh are uh in North Africa uh which currently have some uh 1:04:06 1 hour, 4 minutes, 6 seconds cell capacity that uh does not attract uh too much of uh and uh are we looking at any other countries to export? 1:04:20 1 hour, 4 minutes, 20 seconds Yes, absolutely. Uh we are exploring uh EU as a market. Uh there are some uh non-Chinese supply tenders uh for a 1:04:29 1 hour, 4 minutes, 29 seconds couple of countries that are ongoing. Uh we are also focusing on Australia uh and Middle East. Uh the conversations are very encouraging. 1:04:39 1 hour, 4 minutes, 39 seconds All right. Thank you. And uh lastly, I'm sorry to interrupt Nidi. Please rejoin the queue. We are other participants taking their time. Yeah. Thank you. 1:04:47 1 hour, 4 minutes, 47 seconds All right. 1:04:49 1 hour, 4 minutes, 49 seconds Ladies and gentlemen, kindly restrict yourselves to one question only. We will take our next question from the line of Bhav from Arizona strategies. Please go ahead. 1:05:01 1 hour, 5 minutes, 1 second Hello. Hi. Good morning. So I have one question related marble. Yes, you are. 1:05:09 1 hour, 5 minutes, 9 seconds Hello. So I had one question with the with this level of growth. Can we see the margin at uh the growing l or uh the same? 1:05:24 1 hour, 5 minutes, 24 seconds Ladies and gentlemen, the line for management has been disconnected. Please hold while we get them back. 1:05:55 1 hour, 5 minutes, 55 seconds Ladies and gentlemen, the line for management has been connected again. Over to you, sir. Hello. Hi, I'm audible. 1:06:02 1 hour, 6 minutes, 2 seconds Yes, you are audible. 1:06:04 1 hour, 6 minutes, 4 seconds So I had one question like uh with this level of growth can we uh what's the growth guidance that you will give it to the investors. 1:06:15 1 hour, 6 minutes, 15 seconds So as we saw that uh F126 delivered an 84% jump on the AITA uh with the new 1:06:23 1 hour, 6 minutes, 23 seconds facility coming in uh we plan to deliver uh appro 7.5 to 8 gawatt in FI27 1:06:30 1 hour, 6 minutes, 30 seconds uh to deliver in the beta about 74% more than what we have delivered in FI26 which therefore works out to a range of 1500 to 1600 crores. 1:06:43 1 hour, 6 minutes, 43 seconds Okay. and uh so what's the I'm sorry to interrupt Dhal one question 1:06:49 1 hour, 6 minutes, 49 seconds at a time please thank you next question is from the line of 1:06:56 1 hour, 6 minutes, 56 seconds Shashangja an individual investor please go ahead hello 1:07:04 1 hour, 7 minutes, 4 seconds Shashank your line is unmuted yeah please proceed thank you yes sir my question is regarding battery so I have understood one thing that For 1:07:13 1 hour, 7 minutes, 13 seconds 1 megawatt AC power you need uh 1.5 to 1.8 KW solar module uh due to DCA 1:07:21 1 hour, 7 minutes, 21 seconds conversion. So this is going to happen with best battery also. So what will be the multiplication factor here if it is there? 1:07:31 1 hour, 7 minutes, 31 seconds So sash the battery requirement uh depends on what setup it is. If you see the current uh tender requirements, the 1:07:40 1 hour, 7 minutes, 40 seconds storage ranges from 2 hours to 6 hours for a CNI or a data center setup. Uh it could uh when possibly be a 1:07:49 1 hour, 7 minutes, 49 seconds roundthe-clock uh requirement with higher uh storage built in. So it is very hard to put down a multiplier but 1:07:57 1 hour, 7 minutes, 57 seconds on an average uh this is the storage requirement. These are we uh so I mean if I say uh 80 gawatt of solar with 1:08:06 1 hour, 8 minutes, 6 seconds storage about 320 uh gawatt hours with four hours of storage or will either DC block or best utilized. 1:08:16 1 hour, 8 minutes, 16 seconds Thank you ladies and gentlemen. Due to time constraint we will take our last question from the line of Vishad Kabda from Hulani Venture Capital Fund. Please go ahead. 1:08:26 1 hour, 8 minutes, 26 seconds Good morning sir. First of all, I would like to congratulate for the results. So my question is since silking wafers and 1:08:34 1 hour, 8 minutes, 34 seconds silver are key input for your business, how are rising raw material cost especially silver impacting your overall cost structure and to what extent you 1:08:43 1 hour, 8 minutes, 43 seconds are able to pass these increase on to customers? 1:08:49 1 hour, 8 minutes, 49 seconds So uh that is too long a short uh as on date as I the brief uh that the MSAS we have signed with our customers to allow 1:08:57 1 hour, 8 minutes, 57 seconds us to pass through the cost of sale and the uh dollar uh appreciation which is to the extent of 80%. Going forward with 1:09:05 1 hour, 9 minutes, 5 seconds cell coming in uh with bering coming in we will have to uh see as to how the overall market pans out. Uh obviously we 1:09:12 1 hour, 9 minutes, 12 seconds cannot be uh setting the terms in isolation. So I can only give that much information as it. 1:09:23 1 hour, 9 minutes, 23 seconds Thank you. That was the last question for today. I now hand the conference over to the management for closing comments. 1:09:31 1 hour, 9 minutes, 31 seconds Okay. Thank you everyone for joining us today and for your insightful questions. 1:09:37 1 hour, 9 minutes, 37 seconds Hope we were able to address all of them comprehensively. We remain committed to keep you all informed and as we execute against the milestones we have outlined. 1:09:45 1 hour, 9 minutes, 45 seconds For any further queries since they will remain unanswered, please feel free to reach us. Thank you very much. 1:09:55 1 hour, 9 minutes, 55 seconds Thank you very much. On behalf of Go India Advisers, that concludes Vikram Solar Conference. Thank you all for joining us today and you may not disconnect your lines.