Websol Energy System Ltd — Q4 FY26

Websol Energy System Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8yMnvi7KKUs Published: 2 weeks ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Websol NG system limited Q4 and FY26 earnings conference call. 0:12 12 seconds As a reminder, all participants line will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:30 30 seconds note that this conference is being recorded. I now hand the conference over to Mr. Sanhan Lal Agarwal, man director. 0:39 39 seconds Thank you and over to you sir. Thank you very much. 0:45 45 seconds Good afternoon everyone and thank you all for joining us today. 0:50 50 seconds FY26 had been a landmark year for websock. If I take a step back and look at this year as a whole, I would say it 0:59 59 seconds was a year where the work of the last few years really started showing up both in our operations and in numbers. 1:08 1 minute, 8 seconds Reflecting the strong performance of the year and our confidence in the business, the board has recommended a dividend of 1:16 1 minute, 16 seconds rupees 0.25 25 per share for FY26 subject to shareholder approval. 1:24 1 minute, 24 seconds Moving on to the operational updates during the year, we commissioned sale line 2 in September 2025 1:34 1 minute, 34 seconds which has taken our sale capacity from 600 megawatt to nearly 1.2 gawatt practically doubled. 1:42 1 minute, 42 seconds And this was done within our planned timeline and entirely through internal approvals. We have not raised any funds 1:50 1 minute, 50 seconds for phase two. That matters to us because in this business it is not only about expansion. It is also about how disciplined you are with your capital. 2:02 2 minutes, 2 seconds In terms of what comes next, our growth ambitions remain very much intact. We are upgrading one of our existing monopark cell line to top technology. 2:14 2 minutes, 14 seconds This will take our total cell capacity from 1.2 gawatt to 1.35 gawatt and more importantly 2:23 2 minutes, 23 seconds it positions us at the higher end of the efficiency curve. We are targeting sale efficiency of more than 24.5% 2:31 2 minutes, 31 seconds on this upgraded line. We see this as an important milestone in itself and also 2:38 2 minutes, 38 seconds as a stepping stone towards our plan integrated 4 gawatt cell and model facility. 2:46 2 minutes, 46 seconds Our capex and growth plan remain on track on Andhra Pradesh. We are evaluating the next steps and we will share more details in time to come. 2:56 2 minutes, 56 seconds What we have done is to apply greater discipline in sequencing in funding structure and execution planning before we commit to firm timelines. 3:07 3 minutes, 7 seconds In a project of this size, we believe clarity is better than an early announcement. 3:14 3 minutes, 14 seconds The solar sector today is in a very significant opportunity cycle. We recognize that this is the time to act 3:22 3 minutes, 22 seconds thoughtfully but proactively and I want to assure all of you that the management shares the that urgency for 3:31 3 minutes, 31 seconds us growth is a combination of additional capacity full run rate utilization of existing 3:37 3 minutes, 37 seconds assets productivity gains technology progression backward integration and from better cash conversion. 3:48 3 minutes, 48 seconds All of these are very active areas of focus for us. Our backward integration work is also progressing nicely. The 3:56 3 minutes, 56 seconds work with London on the ingot and vapor physibility is part of strengthening our position across the full value chain. In 4:05 4 minutes, 5 seconds this sector, agility matters and we are very conscious of that. 4:11 4 minutes, 11 seconds If I look at where stands today, the business is stronger operationally, financially and strategically 4:20 4 minutes, 20 seconds than where it was a year ago. We have doubled our sale capacity. We have improved utilization meaningfully across 4:28 4 minutes, 28 seconds all lines. We have delivered the highest revenue, the highest IDA and the highest patch in the company's history. We have generated strong operating cash flows. 4:39 4 minutes, 39 seconds Our balance sheet is the strongest it has been in our 30-year journey. Most importantly, we have created the optionality for the next leg of growth. 4:50 4 minutes, 50 seconds That in our view is not a company standing still. That is a company preparing carefully for what comes next. 4:58 4 minutes, 58 seconds We we remain confident about the opportunity ahead and we remain committed to building this business with discipline, ambition and responsibility. 5:08 5 minutes, 8 seconds With this gentlemen, I would now like to request Sina Katan to take you through the operational and financial performance for the year in more detail. 5:18 5 minutes, 18 seconds Thank you very much again. 5:21 5 minutes, 21 seconds Uh thank you sir and good afternoon everyone. Let me take you through our operational and financial performance for quarter 4 financial year 26 and full 5:30 5 minutes, 30 seconds year financial 26. Starting with the full year revenue from operations stood at rupees 1,049 crores. a growth of 5:39 5 minutes, 39 seconds nearly 82% over last year. EBIDA came in at rupees 429 crores, a growth of around 5:45 5 minutes, 45 seconds 70% with an ebida margin of 41%. PAT was 303 crores, 96% higher than last year, translating to a PAT margin of 28.6%. 5:58 5 minutes, 58 seconds This has definitely been a record revenue for Websol. For quarter 4, revenue was rupees 401 crores. EITA 6:06 6 minutes, 6 seconds stood at rupees 146 cr and pat was rupees 125 cr. Q4 has been the best ever 6:13 6 minutes, 13 seconds quarter for the company on practically every parameter. Revenue grew 132% yearonear and 54% sequentially. 6:23 6 minutes, 23 seconds Eida grew 86% yearonear and pat was up 158% yearon year. Moving on to cash flow 6:30 6 minutes, 30 seconds and the balance sheet. During the year, we generated rupees 255 crores of cash from operations which is roughly 84% of 6:38 6 minutes, 38 seconds our PAT. As a result, the company turned net cash surplus highlighting strong financial discipline. Net worth has more 6:47 6 minutes, 47 seconds than doubled from rupees 278 crores to rupees 631 crores. Debt to equity has come down from 0.55 times to 0.19 times. 6:59 6 minutes, 59 seconds Our return ratios have also strengthened meaningfully with ROCE at 66% and ROE at 67%. 7:07 7 minutes, 7 seconds Reflect reflecting reflecting this overall improvement during the year. 7:12 7 minutes, 12 seconds Crystal has assigned us a tripleB plus stable rating which is a strong endorsement of the progress made 7:19 7 minutes, 19 seconds on the operational side. Cell utilization remained high at above 90% for uh cell and moduline achieved its highest ever monthly utilization at 80%. 7:31 7 minutes, 31 seconds For Q4 as a whole, our combined cell capacity utilization stood at 90%. 7:38 7 minutes, 38 seconds As we move into the coming quarter, we expect to approach full run rate utilization across all our lines. On the 7:46 7 minutes, 46 seconds order book front, we closed Q4 FI26 with a confirmed order book of rupees 1,161 7:54 7 minutes, 54 seconds crores with sales contributing around 40% and modules contributing 60%. Our 8:00 8 minutes bookto ratio stood at 1.02 times for the quarter providing healthy visibility on into the next few quarters of 8:08 8 minutes, 8 seconds operations. Overall, FI26 has demonstrated the kind of operating leverage and cash generation our 8:16 8 minutes, 16 seconds existing capacity is capable of delivering and gives us a strong base to build on as we move into the next phase of growth. With this, we can now open 8:25 8 minutes, 25 seconds the floor for questions. Thank you very much. 8:30 8 minutes, 30 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star 8:37 8 minutes, 37 seconds and one on the touchstone phone. If you wish to remove yourself from the question queue, you may press star and 8:45 8 minutes, 45 seconds two. Participants are request to use handsons while asking a question. Ladies and gentlemen, we'll wait for a moment while the question ceue assembles. 8:59 8 minutes, 59 seconds The first question is from the line of Amit Mishra from as an individual investor. Thank you and please go ahead. 9:14 9 minutes, 14 seconds Hello. Hello. Yeah. Hello. 9:18 9 minutes, 18 seconds Yeah. Hi everyone. Uh good afternoon. Um congratulations on fantastic Q4 and fantastic FY26. 9:26 9 minutes, 26 seconds uh as um management has already elaborated, it's sort of a turnaround uh 9:33 9 minutes, 33 seconds year for the company. Um so I I just want to the the presentations and press 9:40 9 minutes, 40 seconds releases with us. Uh so thanks for all that detailed information. Uh just wanted to to run um on one particular 9:49 9 minutes, 49 seconds subject that is uh you know the the pledge uh we we are caring for and uh 9:56 9 minutes, 56 seconds what sort of uh time frame we have to address it. Um now that we are like net cash surplus companies. 10:06 10 minutes, 6 seconds Uh so if if you can just like highlight uh what's the what's the time frame for this? 10:15 10 minutes, 15 seconds Yeah sure. So the outstanding net debt under the Irida facility is at approximately 92 crores and of course we 10:24 10 minutes, 24 seconds appreciate that more than 80% of the promoter shares are uh pledged on this account. So as you correctly mentioned 10:32 10 minutes, 32 seconds we have turned net cash surplus as of March 31st 2026 and we are currently in advanced discussions with Irida for 10:40 10 minutes, 40 seconds repayment of the loan and release of the pledge shares. Of course there's a process involved which includes certain 10:47 10 minutes, 47 seconds standard procedural steps and I would like to say that we are on track to complete the repayment and get the 10:54 10 minutes, 54 seconds requisite shares released. So hopefully in the next month or two uh we should be able to get this job done 11:03 11 minutes, 3 seconds right because we would be preparing for uh you know next capex u expansion and 11:12 11 minutes, 12 seconds um can you can you let us know what is the plan for that? Is it going to be immediately taken uh you know once you 11:20 11 minutes, 20 seconds start the project or would it be sometime after? 11:26 11 minutes, 26 seconds So uh we have definitely started uh on the project and uh as we have a comfortable uh uh cash surplus with us. 11:36 11 minutes, 36 seconds Currently we are uh making do of all the expenses through this at some point of time. Definitely we would have to uh 11:45 11 minutes, 45 seconds raise some amount of debt but the idea is to use our current surplus to get down the debt component as much as possible. 11:57 11 minutes, 57 seconds Right. Okay. Uh and can you give us the timeline for the top one upgrade for the the the line one of the monopath line? 12:07 12 minutes, 7 seconds Correct. So we've already started on this project and uh it seems that by Feb 27 which is less than one year from 12:16 12 minutes, 16 seconds today we will be able to upgrade the line and uh start commercial production. 12:23 12 minutes, 23 seconds So so this would uh impede uh production of one line uh in some way or form. Can 12:31 12 minutes, 31 seconds you let us know like what how how long would would that be would that period be 12:38 12 minutes, 38 seconds like how long it takes to integrate the integrate the new equipment to the monop existing line? 12:45 12 minutes, 45 seconds Yeah. So uh I think Vand we can take up that question with respect to what the process is. 12:52 12 minutes, 52 seconds So by uh February 27 we will be starting uh topcon. So you know converting the 12:59 12 minutes, 59 seconds perk to to talk and um it would take around 2 months to come to you know a 13:05 13 minutes, 5 seconds full capacity level but uh slowly we'll start off with small capacities because we need to you know change the process 13:12 13 minutes, 12 seconds uh steps to uh integrate it and then um uh so a lot of trials will be there of course but uh it will not take more than 13:21 13 minutes, 21 seconds uh two months to come to the full capacity that's what we are expecting. 13:28 13 minutes, 28 seconds Okay, understood. That would be closer to Feb 27. That's uh the supply. 13:33 13 minutes, 33 seconds Yeah. So FP 27 is when we are expecting to record commercial start and after commercial start what Miss Vasanti is 13:42 13 minutes, 42 seconds mentioning is that we would we are factoring around 2 months to be able to ramp up at optimum utilization levels 13:50 13 minutes, 50 seconds because once we even record commercial start obviously the product becomes sellable but it takes time to reach that high utilization level. So that would 13:59 13 minutes, 59 seconds potentially take two months as per our current planning but definitely we will be able to bring product to the market in Feb 27. 14:08 14 minutes, 8 seconds That's right. And just last one uh on the phase three KPEX for 2 Gawatt uh what's the what's the update right now 14:16 14 minutes, 16 seconds where we are uh in terms of land acquisition and start of construction if you can reflect on that as well. 14:24 14 minutes, 24 seconds Yeah. So with respect to the 2 gawatt project also our capex commitment and growth road map is definitely on track. 14:32 14 minutes, 32 seconds Um what we are doing right now is we are evaluating what is best for the company the right sequencing the right funding 14:39 14 minutes, 39 seconds structure and the right execution approach for a project of this scale. So once we have like little more detail on that we will definitely come back with the necessary communication. 14:51 14 minutes, 51 seconds Okay. Thanks. So I will join back in the queue. Uh yeah, thank you. 14:59 14 minutes, 59 seconds Thank you. The next question is from the line of Naman Jan from Kodak institution equalities. Thank you. Please go ahead. 15:09 15 minutes, 9 seconds Hello. Am I audible? Yeah. Yeah. 15:14 15 minutes, 14 seconds Yeah. Uh few questions. Uh the uh one is on the upgrade uh for like 600 megawatt 15:22 15 minutes, 22 seconds uh that you want to convert to 750 megawatt of top corn what will be the cost um and the period about 10 months 15:31 15 minutes, 31 seconds is I'm guessing what you'll take doing it gradually how much of the production will be impacted and another point was 15:39 15 minutes, 39 seconds that we have seen um in other companies that what they tend to do is they scrape scrapping their perk line and building 15:48 15 minutes, 48 seconds up a new topcon line. So why has that been the case for them and we are upgrading this line directly? If you can 15:56 15 minutes, 56 seconds clarify this and then I'll come up with other questions. 16:00 16 minutes Yeah. Hi Nam this side. So uh uh so uh we are expecting as of now that uh it will cost around 250 to 270 crores for 16:09 16 minutes, 9 seconds this upgrade and it's not that we are scrapping our old line actually we are adding more equipment to that line so that we can convert our existing monopol 16:18 16 minutes, 18 seconds lines. So and we as on day as of now we estimate that roughly half a month we expect there should be uh some issues 16:26 16 minutes, 26 seconds with the production as we merge these two line to uh as we integrate these line to top call on 16:33 16 minutes, 33 seconds okay but the other time you can work at 100% at the current levels if I'm yes yes yes 16:42 16 minutes, 42 seconds okay okay so then okay got it and um another thing is that uh in this line will you also be able to produce G12R 16:51 16 minutes, 51 seconds the larger cell or will you be producing the older M10 using the M10 wafer? 16:57 16 minutes, 57 seconds Yes, we we can produce G12R that is 200 by 210 by 182. Yeah. Yeah. Correct. Correct. Okay. Okay. 17:06 17 minutes, 6 seconds Uh another thing which has come up um is that uh while CNI has seen very strong 17:14 17 minutes, 14 seconds demand, some of the IPS are saying that you know um they are delaying capacity 17:20 17 minutes, 20 seconds expansion due to uh lack of evacuation or the transmission capability capacity 17:27 17 minutes, 27 seconds right so are you seeing some you know weakness from that segment if you can just give your thoughts on Kusum rooftop 17:34 17 minutes, 34 seconds uh CNI and IP B that will be very important. 17:40 17 minutes, 40 seconds So uh demand yeah as of now focus is on BCR market is 17:48 17 minutes, 48 seconds a focus on DCR market. So we are largely concentrating on PM Kushum and PM Suryar 17:55 17 minutes, 55 seconds and uh we are we are not facing any demand related issues as of now. Yeah. 18:02 18 minutes, 2 seconds You got it. You got it. industry and uh just one final question uh the 18:09 18 minutes, 9 seconds what are the what have been the pricing trends on uh the cell DCR cell and DCR module business over the last 6 eight 18:18 18 minutes, 18 seconds months if you can share because some of the capacities have come up however the demand has also gone up so if you can 18:24 18 minutes, 24 seconds just share your thoughts on that so uh in line with what we have shared on the 18:32 18 minutes, 32 seconds previous calls the cell dualization is around 13 to 13.5 cent per watt and the module realization is around 22 to 20.5 cent per watt paper. 18:43 18 minutes, 43 seconds Okay. 18:44 18 minutes, 44 seconds So there has been some solutions 18:58 18 minutes, 58 seconds thank you from my side. Thanks a lot. 19:03 19 minutes, 3 seconds Thank you. The next question is from the line of Yeshin from Dan Capital Advisers. Thank you and please go ahead. 19:13 19 minutes, 13 seconds Hello Mr. Jen. I'm ahead. Yeah, I'm able. 19:19 19 minutes, 19 seconds Yeah. So good afternoon. Uh firstly, congratulations on a good set of numbers. So I have a two quick questions. 19:26 19 minutes, 26 seconds First is what is the execution timeline of your current 1160 order book and second is like uh given the current cost 19:35 19 minutes, 35 seconds environment and spot pricing trends how are margins shaping up for non DCR and DCR modules. Yeah, that are my question. 19:47 19 minutes, 47 seconds Sorry, can you repeat the first part of your question? So, one part of your question is with respect to what are the margins like with respect to DCR and 19:55 19 minutes, 55 seconds nonDCR and what was the first part of your question please? 20:00 20 minutes Yeah. So, first question was like what what will be the execution timeline for your current 1160 cr order book? 20:10 20 minutes, 10 seconds Yeah. So with respect to our order book so as per the last quarter order book stood at somewhere close to rupees 1,150 20:19 20 minutes, 19 seconds crores which after a 41 cr of uh sale we are now standing at 1,161 20:28 20 minutes, 28 seconds crores as of last quarter which translates to increase in confirmed orders of rups 412 crores. So if you 20:36 20 minutes, 36 seconds look at our last quarter revenue numbers that includes a 1.2 gawatt self capacity 20:44 20 minutes, 44 seconds and a 550 megawatt module capacity. So somewhere this 1161 cr is something which we feel confident that we can uh complete in one uh financial year. 20:57 20 minutes, 57 seconds Okay. Okay. in the second second. 21:00 21 minutes Yeah. And with respect to margin uh definitely over the next uh two three 21:07 21 minutes, 7 seconds years we expect sell margins at least to remain healthy. Obviously there will be some variability like for example 21:14 21 minutes, 14 seconds recently we have seen how silver price increase has uh hit margins and obviously some softening has come on account of the final sale price also. 21:25 21 minutes, 25 seconds However, with um ALMM list 2 which is expected to become mandatory and continued demand from schemes like PM 21:33 21 minutes, 33 seconds Kosum and PM Surya, the demand environment remains supportive. So uh definitely it will be interesting to see 21:41 21 minutes, 41 seconds how the margins evolve but it should hopefully be in the same vicinity with some variability. 21:51 21 minutes, 51 seconds Uh and it's for nonDCR nonDCR non DCR modules. 21:55 21 minutes, 55 seconds So non nond DCR is not really a focus area for us because as we have a 1.2 22:01 22 minutes, 1 second gawatt cell line 600 megawatt of cells we absorb into our module line and we 22:08 22 minutes, 8 seconds sell the final uh DCR module. So currently our order book does not include any nonDCR and as you must have 22:16 22 minutes, 16 seconds gone through the notification by the government of the June 2026 mandate wherein uh DCR has got mandated for most 22:25 22 minutes, 25 seconds projects we are more or less compliant with that because we don't have a nonDCR book. Okay. Okay. Clear. Thank you. 22:34 22 minutes, 34 seconds Yeah. Yeah. 22:38 22 minutes, 38 seconds Thank you. The next question is from the line of Abi Seagel from Singularity AMC. Please go ahead. 22:46 22 minutes, 46 seconds Hello. Uh congratulations sir on a great set of numbers. So just one question from my end. So we see that the AIDA 22:54 22 minutes, 54 seconds margin has reduced over the year across quarter by quarter. Just wanted to understand is this because of an 23:01 23 minutes, 1 second additional production of bond use or any other particular reason for this? 23:07 23 minutes, 7 seconds Yeah. So you're absolutely right. Uh module margins are structurally lower than sell margins and definitely as in 23:15 23 minutes, 15 seconds Q4 we've reported our highest ever module sales the overall EITA has been 23:22 23 minutes, 22 seconds impacted because of that. So on a cell level specifically as I previously mentioned because of increase in silver 23:30 23 minutes, 30 seconds cost and performing of the final sale price some amount of EIDA compression has taken place but definitely the uh 23:39 23 minutes, 39 seconds drop is majorly on account of module being introduced in our product mix and 23:45 23 minutes, 45 seconds contributing to our um uh revenue more than the cell number. 23:52 23 minutes, 52 seconds Got ma'am. Thank you. So ma'am just going forward with one thing I would like to point out that despite the moderation in margins EIDA 24:00 24 minutes has grown 86% year on year and around 37% quarteron quarter which reflects the strong underlying scale up in the business. 24:10 24 minutes, 10 seconds Yes ma'am. Uh congratulations once again ma'am. Thank you. Yeah thank you. 24:18 24 minutes, 18 seconds Thank you. The next question is from the line of Maitri from Safire Capital. Please go ahead. 24:25 24 minutes, 25 seconds Yeah. Hello. Good evening. Am I audible? Yes. 24:29 24 minutes, 29 seconds Yeah. Uh firstly in the previous call you mentioned that there were certain inventory buildups and liquidity constraints from your consu consumers 24:38 24 minutes, 38 seconds and your clients. So has that easing happened in the quarter 4? Are you seeing that happening in quarter one? 24:46 24 minutes, 46 seconds Yeah. So definitely there was some uh delay in offtake last quarter which as 24:52 24 minutes, 52 seconds we uh mentioned was an industry-wide uh phenomenon driven by temporary liquidity stress at the customer end rather than 25:01 25 minutes, 1 second order cancellation. However, now these deferred orders have been executed and Q4 offtake reflects this recovery. In 25:10 25 minutes, 10 seconds addition, we have secured new orders of 412 crores as I just mentioned and taking this takes our order book to a strong 1161 crores as of now. 25:21 25 minutes, 21 seconds Okay, that is great. And currently what sort of bid pipeline do we have? Do we kind of give a number on the sales sales 25:28 25 minutes, 28 seconds order that we bidding for the mortgage orders we're bidding for? 25:33 25 minutes, 33 seconds Yeah. So the mix size I think we put it in our investor presentation also. It's around 60% of this order book is module 25:42 25 minutes, 42 seconds and 40% is uh not not the order book. Uh I'm asking about the bid pipeline. Any new orders 25:48 25 minutes, 48 seconds that you're bidding for um that we might win in FI27. 25:54 25 minutes, 54 seconds Understood. So typically right now as our order book is monu we typically do not have any we don't we are not 26:01 26 minutes, 1 second involved in any tendering. So most of the orders that we are achieving are basically either through module 26:09 26 minutes, 9 seconds manufacturers in case of cells and in case of modules it's basically these solar pump players predominantly who are 26:17 26 minutes, 17 seconds then tendering ahead. So for us our final consumer segment is them. So we do not actually directly tender for any government orders as of now. 26:28 26 minutes, 28 seconds Okay. And uh going forward now that you mentioned that the module margins are structurally lower than the cell and 26:36 26 minutes, 36 seconds we're adding like more capacity in the module as well because we're adding I think up to 4 GZ of capacity in the module side. What sort of split do you 26:44 26 minutes, 44 seconds expect uh the company to have in modular cell manufacturing um in like maybe two to three years once the reputation facilities live? 26:53 26 minutes, 53 seconds Uh yeah so I mean definitely right now we have one extra uh cell line compared to the module line and whatever 27:01 27 minutes, 1 second capacities we are going to bring ahead we are planning to bring integrated capacities of cell and module in a phased manner of 2 gawatt and then 2 27:10 27 minutes, 10 seconds gawatt. So this extra cell line that we currently have of 600 megawatt which is getting upgraded to 750 megawatt owing 27:18 27 minutes, 18 seconds to the topcon expansion that will always be an additive. So that will be the extra cell supply which we'll have. 27:26 27 minutes, 26 seconds Okay. And uh the module manufacturing that we have the 550 megawatt that that's on the monop side. Correct. Are 27:33 27 minutes, 33 seconds we are we are there any plans to kind of upgrade that as well to the topcon side? 27:39 27 minutes, 39 seconds Yeah. So actually in case of the module line there's no need of any upgrade as such. There is definitely some uh Yeah. 27:48 27 minutes, 48 seconds Yeah. So it will be like some kits will be changed, some [clears throat] you know operating part of the equipment has to be modified but that's not really a 27:56 27 minutes, 56 seconds big upgrade. So that can easily be managed. 27:59 27 minutes, 59 seconds Yeah, from a capex perspective also that's much on the lower side and it's definitely a fairly quicker thing to do. 28:06 28 minutes, 6 seconds So definitely this is how shape up for us in the future. We always have the access of doing that. 28:12 28 minutes, 12 seconds Okay, that's great. And just one last question on uh so if you can kind of give me the quantitative numbers of what sort of margins we have on the modules 28:21 28 minutes, 21 seconds and what margins do we have on the cell because I think you mentioned the realizations on them but if they're better margins it's possible to give them both of them. 28:31 28 minutes, 31 seconds Uh so madam we do not uh report the margin separately. We do report the margin on consorted basis because we are 28:39 28 minutes, 39 seconds using our own set to make we are reporting the margin on cons but obviously as you are aware that the model margins are lower in compar. 28:48 28 minutes, 48 seconds Okay. So any any sort of guidance you would give on the way the margins will kind of shape out to be in FI27 28:56 28 minutes, 56 seconds with like increasing introductions from the modules. It's a very dynamic market market. It's very difficult to predict 29:04 29 minutes, 4 seconds how the margin will sustain in the in in the future. But I on the margin front over next two 29:12 29 minutes, 12 seconds three years we expect the margin to remain healthy with some variability with ALM list to expected to become industry and continue demand from scheme 29:20 29 minutes, 20 seconds like PM Kusum and PM Suras the demand environment will be working. So beyond that margin will depend on how the supply side actually ramp up and stabilize. 29:30 29 minutes, 30 seconds Okay. 29:31 29 minutes, 31 seconds And on the Andhra Pradesh facility you said that you'll be mentioning the timelines post everything has been decided but any sort of range you can 29:40 29 minutes, 40 seconds give it will happen in the end of 27 or maybe we are postponing it by a year. Um any sort of range for the Andes forward? 29:51 29 minutes, 51 seconds Yeah. So there are no plans of postponing uh the expansion uh commitment. So definitely our effort our 29:59 29 minutes, 59 seconds best effort is to ensure that we are able to bring up the capacity as we've already promised. I think June 2027 is what we are targeting. 30:10 30 minutes, 10 seconds Okay. Uh yeah that is from my side. Thank you. Thank you. 30:16 30 minutes, 16 seconds Thank you. The next question is from Ashish Kurana from ENK Capital Limited. Please go ahead. 30:25 30 minutes, 25 seconds Uh thank you. Firstly, congratulations to the whole team for a fantastic Q4 and FI26. Uh my uh first question was on our 30:33 30 minutes, 33 seconds the second branch of the 2 gawatt capacity that is expected to come online around say mid CY 28 which is about 2 30:42 30 minutes, 42 seconds years away and it is on popcorn. Uh so do we see any risk that the demand might shift meaningfully from topcon to some 30:50 30 minutes, 50 seconds other newer technology like XPC by then and also by when uh do we need to lock in the technology choice from and say an 30:57 30 minutes, 57 seconds equipment ordering or execution perspective uh in case you know we decide to shift midway from topcon to some other technology given the scenario at that time. 31:08 31 minutes, 8 seconds Yeah, see top corn will people have just started putting topconcorn and that is not as easy as a perk technology. So 31:16 31 minutes, 16 seconds that will take time some time to stabilize. So one year definitely topcon will continue and what we are doing is 31:24 31 minutes, 24 seconds uh to you know even HBC it's everybody talks about HBC but you know the back 31:31 31 minutes, 31 seconds contact only and uh is and IO to some extent they have made but then we understand there are lot of uh you know 31:39 31 minutes, 39 seconds challenges that they are facing so back contact is not really you know that mature a technology it will take time it will take at least two years time to um 31:48 31 minutes, 48 seconds for that to come so much I mean fully into the market. But what in the meantime what we are doing is whatever in the 2 gawatt that will be we will put 31:56 31 minutes, 56 seconds up we will keep uh space place available I mean spaces left for uh these uh for 32:03 32 minutes, 3 seconds to you know to adapt uh back contact as well so that when that becomes mature we will be able to insert these equipments 32:11 32 minutes, 11 seconds in between and we will be able to run like the way we are upgrading uh perk to topcon we will be able to upgrade topcon 32:18 32 minutes, 18 seconds to back contact as well but it'll take time it's not going to be that quick. I mean the way perk moved quickly to 32:26 32 minutes, 26 seconds topcon won't move that quickly to uh back contact. 32:32 32 minutes, 32 seconds Oh thank you that was very clear we are keeping ourselves you know safe so that even if that comes within say the next 32:40 32 minutes, 40 seconds two years timeline we will be able to you know adopt that as well. 32:45 32 minutes, 45 seconds Yeah. And just one point I want to add to this that uh that is the reason why we've opted for a phased um expansion so 32:54 32 minutes, 54 seconds that we can derisk ourself of any technology change because we appreciate how dynamic this space is. So as Miss 33:02 33 minutes, 2 seconds Basanti said that you know while our strategy is to keep provision for any technology updates we also want to 33:09 33 minutes, 9 seconds upgrade in a phase by manner so that any sort of change in technology we are able to adapt very quickly. 33:18 33 minutes, 18 seconds Understood makes sense. Uh thank you. Uh my second question was about uh your views on the uh depreciation period of 33:25 33 minutes, 25 seconds our sales and module capacity. So I think uh in Q4 we already uh reassessed some of our assets and I think some of 33:32 33 minutes, 32 seconds our peers are depreciating it the topcon lines or monopark lines in three and four years. Uh and so going forward uh 33:41 33 minutes, 41 seconds how should we see the economic life of these assets like would you like come down from the stated policy of say 10 to 33:48 33 minutes, 48 seconds 12 years in your annual report to a lower period on these? 33:53 33 minutes, 53 seconds Yeah. So we've already reduced the useful life for the new equipment which is the topcon to uh 8 years and for the monop we are maintaining it at 3 years. 34:05 34 minutes, 5 seconds So this is as per what our understanding of the technology landscape is. So definitely from 12 we've plotted down to 34:14 34 minutes, 14 seconds these uh numbers. So we'll see how things update in the next few quarters 34:21 34 minutes, 21 seconds or years and if certain other revision is required we will go ahead and do that. 34:28 34 minutes, 28 seconds Noted. And in terms of the uh effective tax rate for FI27 u so I think last year we had unutilized tax credits. Uh so are 34:38 34 minutes, 38 seconds there any more credits and what would be the uh tax rate uh in this financial year? 34:44 34 minutes, 44 seconds Yeah. So yeah. So yeah on this aside so as of now there are no tax credit has remained so we have utilized all our tax 34:51 34 minutes, 51 seconds credit so the next year's state will be a standard income tax rate that is applicable to all countries. 34:58 34 minutes, 58 seconds Got it. And one final question uh what percentage of a revenue u directly or indirectly is dependent on the government like a rough figure. 35:09 35 minutes, 9 seconds So we are not uh selling any product directly to the government. uh we are in the DCR line of business and the TCR 35:16 35 minutes, 16 seconds cells and modules are used in the government projects driven by PM Kusum and PM sura yeah but yeah so uh yeah so revenue 35:25 35 minutes, 25 seconds dependency won't be there for those projects got it uh thank you so much for taking time to answer my questions thank you 35:34 35 minutes, 34 seconds thank you the next question is from the line of pratam sha from rejurance capital please go ahead Yeah, good afternoon. Am I audible? 35:46 35 minutes, 46 seconds Yeah. 35:47 35 minutes, 47 seconds Uh yeah. So, uh speaking about your utilization level which was at 90%age in the last quarter. So, when you are done 35:54 35 minutes, 54 seconds upgrading it to the Docoins facility, uh is the optimum utilization going to remain at 90%age or what is the percentage you are planning to keep it at? 36:05 36 minutes, 5 seconds Yeah. So definitely right now in case of cell our utilization on a combined basis is over uh 90% and that we believe is uh 36:15 36 minutes, 15 seconds the highest which can be maintained with respect to top corn obviously our target would be the same but uh as missanti 36:24 36 minutes, 24 seconds said it will take approximately over two months to get to that level after commissioning but of course the 36:31 36 minutes, 31 seconds target would remain the same that we have to go over 90% All right. And my second question is 36:38 36 minutes, 38 seconds that um speaking about your expansion plans, so what are your targets for use of cells and selling of cells to third party? 36:49 36 minutes, 49 seconds Yeah. So of course as we getting integrated capacities on board like uh the June 27 and June 28 capacities. So 36:57 36 minutes, 57 seconds the idea will be to sell the final module to the end customer. So the only extra cells that we'll have access to is 37:05 37 minutes, 5 seconds from our current operations of around 750 megawatt. So that we will continue to sell to module manufacturers. 37:12 37 minutes, 12 seconds Remaining all other cell capacity we will use captive uh into our own module lines. 37:20 37 minutes, 20 seconds Right. Okay. And uh we also know that there are some Chinese manufacturers of felts. So what is the premium that we are getting compared to them? 37:30 37 minutes, 30 seconds Sorry, I didn't understand your question. Can you repeat? Uh yeah, so there are some Chinese manufacturers who uh manufacture cells. 37:38 37 minutes, 38 seconds So what is the premium that we are charging against them? 37:43 37 minutes, 43 seconds So definitely for us our cost of manufacturing is different compared to Chinese suppliers. But uh obviously here 37:52 37 minutes, 52 seconds whatever we are producing we are using locally for the DCR uh market. So the market price is driven by the industry 37:59 37 minutes, 59 seconds here rather than what the pricing is in China. So definitely there is not much correlation to that. 38:09 38 minutes, 9 seconds Okay. Thank you so much. Yeah. 38:14 38 minutes, 14 seconds Thank you. The next question is from the line of Sushi C. Choxy from Indas Equity Advisers. Please go ahead. 38:22 38 minutes, 22 seconds Congratulations and team webul for excellent performance for the year gone by. My first question 38:29 38 minutes, 29 seconds is uh your current capacity of 1.2 gawatt of cell which would ramp up in February to 1.35. 38:38 38 minutes, 38 seconds Now based on 90% utilization I see a clear road map that your solar cells which you booked there is a scope to 38:46 38 minutes, 46 seconds increase that size to double for the year. Am I assuming right? 38:51 38 minutes, 51 seconds So solar cell cap I do not understand what you output right now you're booked for 466 39:00 39 minutes crores which is roughly 450 to 475 megawatt whereas if you consume for your 39:07 39 minutes, 7 seconds module manufacturing of 550 at 70 80% utilization would be 500 megawatt or less than 500 400 and some odd megawatt. 39:16 39 minutes, 16 seconds So your potential to sell sell in the domestic market outside your module capture consumption should be in the region of 750 to 800 megawatt. 39:27 39 minutes, 27 seconds Yeah because once it increases to top corn so we'll get the advantage of that additional 150 megawatt. 39:33 39 minutes, 33 seconds No but Sanja that is after you achieve top corn in February but as on today till you continue monop also 1.2 2 39:40 39 minutes, 40 seconds gawatt you are running the plant at 90% efficiency if you take at 11 months itself at 1100 you will consume for your 39:48 39 minutes, 48 seconds module roughly around 400 megawatt so you can sell 700 megawatt of sale am I assuming right or wrong 39:55 39 minutes, 55 seconds correct correct correct broadly correct yeah so your potential order book for the current year will you the pipeline 40:02 40 minutes, 2 seconds for order book is vis is 1161 has potential to grow by 50% in near future maybe in the quarter 40:10 40 minutes, 10 seconds Yeah, definitely we are seeing more orders than the number we've reported but as of now it stands at 1161 but definitely there would be some appetite to cater to more. 40:21 40 minutes, 21 seconds What's the update on the current scheme which is likely to roll out the new Kusum 2. 40:31 40 minutes, 31 seconds So sad the uh the on the kusum 2 we need to check uh the scheme details but I think the scheme is more favorable than 40:38 40 minutes, 38 seconds the earlier scheme but the exit detail we need to check out and then we can return. 40:45 40 minutes, 45 seconds Is it that the scheme is going to be much larger than what it has already rolled out and it's like 30 gawatt. 40:52 40 minutes, 52 seconds So sir that's what I told you that we we are hearing about this the scheme is larger than the previous one but the 40:59 40 minutes, 59 seconds exit details uh is the fineprint of the scheme is still working out and we will revert to you once we are aware of the 41:07 41 minutes, 7 seconds entire benefits. Okay, the next question is uh FZ policy some reforms have taken 41:14 41 minutes, 14 seconds place. Do you estimate in the current year once the clarifications are achieved that we'll have some benefit for the fala plant? 41:23 41 minutes, 23 seconds So the as of now what practice we are doing in that we are we will continue to follow that practice. So in the current 41:30 41 minutes, 30 seconds scheme also but we we are uh we are more comfortable with the older team. 41:36 41 minutes, 36 seconds you know I'm not able to understand possibly that does the company have additional benefit because of the SEZ policy 41:44 41 minutes, 44 seconds uh which is being spoken from the budget. 41:48 41 minutes, 48 seconds Yeah. So the budget did mention about some uh diver but I don't think there has been any follow up on that. So 41:56 41 minutes, 56 seconds there's little clarity with respect to what the exact policy would be. So only once the finer footprint comes will we 42:03 42 minutes, 3 seconds be able to yeah the budget says that the SJ units will be allowed to sell in the DTA market but 42:13 42 minutes, 13 seconds in on what conditions has not been clarified. So the notification is still awaited this will come there will be uh my next question is directly to you. 42:25 42 minutes, 25 seconds Would you work to increase your holding pattern from where we stand today after the warrant connection? 42:32 42 minutes, 32 seconds We'll see. Let's wait for this right time. We'll take take the 42:39 42 minutes, 39 seconds uh next question to Asanti ma'am. uh how confident are we to achieve uh the topcon production integration within 15 42:49 42 minutes, 49 seconds days and ramp up in two months for line one which you enabled with order of machinery as of today. 42:58 42 minutes, 58 seconds No, so basically why we are saying that is when the new machinery comes we have a separate area allocated for the new 43:06 43 minutes, 6 seconds machinery which is just adjacent to the existing plant. So there we are going to ramp up uh you know uh installation 43:13 43 minutes, 13 seconds because commissioning installation takes time. So that work will be done while the existing plant is continuing to run. 43:20 43 minutes, 20 seconds So once that plant is ready then we will open up the uh you know the 43:28 43 minutes, 28 seconds existing plantation between yeah and and so we will save time that's how we are uh and ramp up uh of course 43:36 43 minutes, 36 seconds we'll have our um uh equipment providers uh integration support and our own in-house knowledge 43:44 43 minutes, 44 seconds we will be able to ramp up in two months time that is our thinking so based on our experience of is ramp up. If we are successful and we able to 43:53 43 minutes, 53 seconds achieve the capacity what is being visualized of increase of 20% uh 600 going to 750 44:00 44 minutes uh are we going to continue the second line on monopro or that also we'll look to convert to topcon 44:07 44 minutes, 7 seconds that we will uh think later actually because uh that is uh I mean perk is still being utilized and uh you know 44:14 44 minutes, 14 seconds there are some advantages from the fur perk so we will continue to run that line we will not immediately we will more focus on the new expansions. We'll focus more on that. 44:24 44 minutes, 24 seconds So ma'am suryagar and uh the other pro the farm program and the module program 44:31 44 minutes, 31 seconds for the solar roof both has a greater demand for monoporg sale compared to topcon. That is what is my understanding right? 44:40 44 minutes, 40 seconds Right. Right. Yes. 44:41 44 minutes, 41 seconds Yeah. So that demand can continue till the government schemes are rolling out. 44:46 44 minutes, 46 seconds uh any update on ingot to wafer uh integration of technology understanding manpower which was going to go for training or anything else. 44:57 44 minutes, 57 seconds Yeah. So we have signed thatou and we are in technical discussion as well as team building. So the target is that by 45:04 45 minutes, 4 seconds the deadline of June 2028 alm3 we will uh be ready we will be completely ready. 45:10 45 minutes, 10 seconds So we are uh you know uh in quite a uh good good situation as far as uh being 45:18 45 minutes, 18 seconds got in the referring planters. So we have ourselves also done a lot of uh study lot of discussion with the 45:24 45 minutes, 24 seconds equipment supplier and um I think we are in a good situation. 45:31 45 minutes, 31 seconds Uh Sonal G and Vasendi ma'am based on your technical expertise we have increased this current facility from 100 45:38 45 minutes, 38 seconds megawatt to 600 600 to 1.2 2 gawatt. Now you're likely to go to 1.35 and hopefully you'll be at 1.5 when you 45:47 45 minutes, 47 seconds implement the second file. Based on the current utility and the space what we have, does FALA have any additional 45:55 45 minutes, 55 seconds benefit of adding capacity on the existing land building and utility? 46:02 46 minutes, 2 seconds No. Further beyond this I don't think it is possible. at the same in the same compound I there is no there is little scope of any further 46:11 46 minutes, 11 seconds expansion potentially and we'll await your Andra expansion details as and when you decide good luck 46:18 46 minutes, 18 seconds for the year and best wishes to the entire team for the year thank you 46:27 46 minutes, 27 seconds thank you a reminder to all the participants please restrict yourself to two questions the next question is from 46:34 46 minutes, 34 seconds the line of Rahul Himmani from Himmani Financial Services. Please go ahead. 46:41 46 minutes, 41 seconds Yeah. Uh congratulations to the team for the wonderful performance. My simple question is are we having any plans for 46:48 46 minutes, 48 seconds entering into battery energy storage system? 46:53 46 minutes, 53 seconds Uh yeah. So definitely we see strong potential in best given India's target of multi- gawatt hour storage capacity 47:01 47 minutes, 1 second by 2030 and we appreciate that it's a natural adjacency to our existing solar business 47:08 47 minutes, 8 seconds and customer base. However, currently this is exploratory for us because our current priority is on executing the 47:16 47 minutes, 16 seconds announced capacity and scaling up operations. So definitely we are evaluating this and are positive on this 47:23 47 minutes, 23 seconds space but we will update you as and when there are concrete developments on this track 47:31 47 minutes, 31 seconds and Andra plant we are very confident that will uh be operational from June 2027. Correct. 47:38 47 minutes, 38 seconds So definitely our in uh our main priority will be that no timelines of expansion move. So the teams are 47:46 47 minutes, 46 seconds diligently working on that front and as I mentioned that once you know uh more details are available on that we will 47:53 47 minutes, 53 seconds definitely come back with an announcement but going by the current situation are we on track? 48:01 48 minutes, 1 second Yeah that is what we foresee. Thank you. Thank you. 48:09 48 minutes, 9 seconds Thank you. The next question is from the line of Anchel Jalan from Lotus Well. Please go ahead. 48:18 48 minutes, 18 seconds Thank you for taking my question. So firstly, as we will be shifting to topcon from Monop, what will be the improvement in revenue realization and 48:26 48 minutes, 26 seconds efficiency per megawatt. Can you please talk about that? 48:33 48 minutes, 33 seconds Yeah. So right now in case of monop the efficiency is around 23%. 48:41 48 minutes, 41 seconds In case of popcorn we are targeting 24.5% conservatively but definitely there's potential of that number also being 48:49 48 minutes, 49 seconds higher and the revenue 48:56 48 minutes, 56 seconds sorry with respect to in terms of what peak right now in case 49:02 49 minutes, 2 seconds of movie park 23.3% is around 7.8 watt peak per cell. So in case of topcon that 49:10 49 minutes, 10 seconds goes up to 9.3 uh watt peak per because of the cell. 49:14 49 minutes, 14 seconds Yeah because of the cell size and the efficiency. 49:18 49 minutes, 18 seconds So there are two factors for the um increase in W peak. One is the cell size. So right now we are 182 into 182 49:26 49 minutes, 26 seconds when we are doing monoperk. In case of popcorn will go to G12 R will become 182 into 210. So definitely the cell size is 49:34 49 minutes, 34 seconds increasing. Moreover, in case of efficiency from 23.3% in monop, we are targeting 24.5% upwards in case of 49:44 49 minutes, 44 seconds topcoin. So a combined impact of that would translate from around 7.8 watt peak per cell to around 9.3 watt peak 49:52 49 minutes, 52 seconds per cell in case of topcoin. So that would be the impact or what 50:00 50 minutes sorry your voice cracked in between. Can you please repeat? Can you quantify this in revenue K per megawatt? 50:09 50 minutes, 9 seconds It is very difficult to do that because as you know the prices are uh very dynamic. We will be bringing this capacity close to 8 months from today. 50:19 50 minutes, 19 seconds So it's very difficult to know what the price of uh the topcon would be at that time. So definitely we are confident on 50:26 50 minutes, 26 seconds what the uh as as a result of the technology upgrade what the efficiency and what key could look like which we've 50:34 50 minutes, 34 seconds already commented on but realization would be a factor of what the price is at that point of time which is very difficult to comment right now. 50:44 50 minutes, 44 seconds So ma'am, what are the current prices for top? 50:53 50 minutes, 53 seconds It is in the vicinity of uh around 14 cent per watt piece 51:02 51 minutes, 2 seconds and DC uh in the solar industry, how much of demand per year will India have in the 51:09 51 minutes, 9 seconds next five years according to uh your estimates? 51:14 51 minutes, 14 seconds you demand number unfortunately I do not have with respect to what the demand is on a fiveyear basis 51:23 51 minutes, 23 seconds uh but definitely cell module capacity gap is quite visible with I think cell being at 31 gawatt and module being at 51:32 51 minutes, 32 seconds 173 gawatt so definitely the gap between cell and module is there and in case of 51:40 51 minutes, 40 seconds um in case of the On the demand front, what I understand is that around uh the 51:49 51 minutes, 49 seconds installed capacity has reached 150 gawatt in financial year uh 26 and still 51:56 51 minutes, 56 seconds it is on an upward trend. So I would believe that the demand is very prevalent. 52:05 52 minutes, 5 seconds Thank you. Yeah. 52:11 52 minutes, 11 seconds Thank you. The next question is from the line of Ankush Agarwal from Search Capital. Please go ahead. 52:18 52 minutes, 18 seconds The person you are speaking with has put your call on hold. Please stay on the line. 52:35 52 minutes, 35 seconds The next question is from on the line of Red Choxy from Indis Equity Advisor. Please go ahead. 52:42 52 minutes, 42 seconds Uh team webs, congratulations on a landmark result where we've crossed thousand crores in revenues and 300 crores in TAT. Uh a few quick questions. 52:50 52 minutes, 50 seconds The first question uh Sanja you just explained on the capacity addition across the industry. So just wanted to get an understanding. Right now there's 52:58 52 minutes, 58 seconds a lot of chatter of you know eventually we're going to reach over supply and sell as well. My understanding is the announced name plate capacity differs 53:06 53 minutes, 6 seconds very much so from what is coming on as fast as possible versus how much is captive non-captive and the utilization is also across the industry about 80%. 53:15 53 minutes, 15 seconds So can you just give a detailed breakdown on this front? 53:20 53 minutes, 20 seconds Yeah. So as you said right like the announced capacity and the operating capacity are very different. So even like in case of module when we know that 53:28 53 minutes, 28 seconds they installed capacity as for the last M&R number is close to 173 gawatt most plants what my understanding is are 53:37 53 minutes, 37 seconds operating close to 70% or even lower. So definitely the product that actually comes into the market is 70% or 60% of 53:46 53 minutes, 46 seconds the installed capacity. Same in case of cell also ramping up and all takes a lot of time and efficient operation takes 53:56 53 minutes, 56 seconds time. So though the capacity can be installed as a factor of how much capex is done but eventually to be able to run 54:04 54 minutes, 4 seconds it efficiently and to be able to get an efficient product into the market is a very gradual process and specifically in 54:12 54 minutes, 12 seconds case of cell quite a lot of engineering and process steps are required and definitely all announced capacities will 54:20 54 minutes, 20 seconds not translate into immediate supply. So this is what our 30-year experience tells us. 54:26 54 minutes, 26 seconds Got it. So if we've established that capacity utilization is much lower. So then also can you give a split of captive versus non-captive across the industry usage for cells? 54:38 54 minutes, 38 seconds I don't think that data would be available or rather I do not have that that how much of the uh 173 54:47 54 minutes, 47 seconds or rather how much of the 31 gawatt of cell is used captive and how much is coming in the market for monthly suppliers. I don't have that number 54:56 54 minutes, 56 seconds right now but I think I could say that most of the players cell players have integrated uh supply chains wherein uh 55:05 55 minutes, 5 seconds they are using their own cells into a module and are finally selling the final module. So potentially I think we would 55:13 55 minutes, 13 seconds be one of the only players who have more of a cell capacity than a module uh capacity. So definitely though I don't 55:21 55 minutes, 21 seconds have the number to confirm on that but uh definitely most capacities are integrated. 55:28 55 minutes, 28 seconds Got it. So going forward with this clear mismatch in supply and demand visible would you say that for the next three or 55:36 55 minutes, 36 seconds four year period one can assume that it would be possible for us to maintain IITA margins around these levels. 55:43 55 minutes, 43 seconds Yeah. So as I said I mean 34 years is a very long period of time for an industry like ours where you know pricing and 55:51 55 minutes, 51 seconds dynamics keep evolving. So it's difficult to give a time horizon with respect to what the margin variability 55:58 55 minutes, 58 seconds would look like. But as I mentioned in case of PEL broadly it seems uh that you know the margin would remain with some 56:07 56 minutes, 7 seconds variability over the short-term and medium term but definitely all this is a factor of how many capacities come on 56:15 56 minutes, 15 seconds board and what the sale price looks like from an industry perspective in time to come. 56:20 56 minutes, 20 seconds Understood. Uh last question. Uh India reached a peak demand yesterday of 256 gawatt. Now we can also see this year PM 56:29 56 minutes, 29 seconds Kusum 2.0 is supposed to go live. So can you speak a little bit on the benefit we're expecting from that scheme and additionally uh I I I understand you've 56:37 56 minutes, 37 seconds already answered exploring inot and wafer but like how keen are we on this and how soon do we expect to go live on this as well eventually. 56:44 56 minutes, 44 seconds Yeah. So of course wafer and as for the ALM list three update it says June 2028. 56:51 56 minutes, 51 seconds So we want to match our uh commissioning by that time because at that point of time you know the um I mean it's around 57:00 57 minutes u more than one and a half years from today. So we feel of course we are definitely aggressive on this and we 57:07 57 minutes, 7 seconds feel like cell was the answer a few months or years ago. Now vapor and inot is what the answer would be. So 57:15 57 minutes, 15 seconds definitely we are bullish on this and we have to bring these capacities live and we will target the June 2028 uh 57:24 57 minutes, 24 seconds uh timeline for the same and uh the benefit on you know the schemes like BMU 2 etc going live this year. 57:33 57 minutes, 33 seconds Yeah the definitely like even for the June 2026 update by the government that you know BCR has got mandated for projects. So definitely from the 57:42 57 minutes, 42 seconds government side there has been a push to ensure that domestic manufacturing is uh protected and on a demand side we 57:51 57 minutes, 51 seconds haven't foren any challenge. In fact our order book is growing and we remain positive that these schemes that the government is uh implementing is only going to increase the uh demand. 58:04 58 minutes, 4 seconds All right. Thanks very much. All the very best. Thank you. 58:10 58 minutes, 10 seconds Thank you. The next question is from the line of MKkesh Agarwal from Turbo. Thank you and please go ahead 58:23 58 minutes, 23 seconds Mr. Agarwal. Please go ahead. 58:28 58 minutes, 28 seconds Hello. Yeah. Congratulations for the wonderful performance. My question is that uh since now ALM2 is coming so how 58:37 58 minutes, 37 seconds much sales you and assume to boost uh with the introduction of uh ALM2 the from which is implementing from June 2026. 58:49 58 minutes, 49 seconds Uh you mean how much would we contribute to that? Is that the question? Yeah. 58:56 58 minutes, 56 seconds Yeah. So uh our entire capacity right now is just DCR which is domestic content requirement. So all the products 59:05 59 minutes, 5 seconds that we made are uh ALM sorry our entire capacity is ALM listed. So eventually everything that we are uh bringing to 59:14 59 minutes, 14 seconds the market is BCR compliant. So 100% of our uh line is utilized for that. Oh no 59:22 59 minutes, 22 seconds but but you told you have the order book of163 crores for the financial year 2027. So uh I'm asking the how much sale 59:32 59 minutes, 32 seconds you expecting to uh get extra with the ALM2 introduction introduction. 59:39 59 minutes, 39 seconds I don't think that the ALMM introduction has definitely boosted more domestic manufacturing. So how much extra sales 59:49 59 minutes, 49 seconds is difficult to say that is coming that can be directly attributable to this uh release but definitely we are seeing a 59:57 59 minutes, 57 seconds very strong order book ahead and as I said our entire line is ElmM listed so we are definitely ready to uh cater to 1:00:06 1 hour, 6 seconds the surge in demand because of this notification. Okay. Thank you very much. 1:00:16 1 hour, 16 seconds Thank you. The next question is from the line of Nitan Shaktar from Green Capital Single Family Office. Please go ahead. 1:00:27 1 hour, 27 seconds Hi. Uh good afternoon. This is Natan Shaktar from the Green Capital Single Family Office. So Sanja, I think you answered a little bit of the question 1:00:35 1 hour, 35 seconds regarding this but my question was more as a vision for an investor. 1:00:40 1 hour, 40 seconds What uh areas do you see there's a diversification possible for web soul now whether it's in water for production 1:00:48 1 hour, 48 seconds or whether it's HGH production or whether it's smart metering EMS best or whether it's even building integrated 1:00:56 1 hour, 56 seconds photo voltics just as a vision strategy exercise for the year uh any input from the company regarding this uh for a 1:01:03 1 hour, 1 minute, 3 seconds forward-looking investor which does not just look at quarter by quarter beat but more like annual performances. Thank you. 1:01:10 1 hour, 1 minute, 10 seconds Yeah. So, uh definitely we have primarily been cell manufacturers and that is where our interest area lies. We 1:01:19 1 hour, 1 minute, 19 seconds feel that is a product we understand very well and we have a very wellqualified team who has been able to perform really well and bring up 1:01:28 1 hour, 1 minute, 28 seconds capacities in very short time frames. So definitely that is our primary area of interest. However, we would like to 1:01:36 1 hour, 1 minute, 36 seconds complete the value chain by forward integrating on module which we have done by bringing the 550 megawatt line and all future capacities that we bring will 1:01:45 1 hour, 1 minute, 45 seconds also be fully integrated and in this area is also to go backward into vapor and inot so that we can secure the whole 1:01:53 1 hour, 1 minute, 53 seconds value chain from that perspective. So definitely these three products is where the primary focus remains with respect 1:02:01 1 hour, 2 minutes, 1 second to bet and other ancillary opportunities as I mentioned definitely it's a space which is uh growing and uh it's an 1:02:09 1 hour, 2 minutes, 9 seconds ancillary product for our customer base with respect to the module but uh we are concentrating more right now on the 1:02:17 1 hour, 2 minutes, 17 seconds wafer ingot cell and module story and we'll see how the best space develops for us. 1:02:24 1 hour, 2 minutes, 24 seconds Okay, great. Thank you. And you've created another problem for yourself by declaring such stunning results that you have to constantly beat yourself on quarter on quarter which is an extremely 1:02:33 1 hour, 2 minutes, 33 seconds tough exercise but let's look at it annually and all the best. Yeah, thank you so much. 1:02:42 1 hour, 2 minutes, 42 seconds Thank you. The next question is from the line of Prul Jitan Sha from 1:02:49 1 hour, 2 minutes, 49 seconds Anur Briti Advisers LLP. Please go ahead. 1:02:54 1 hour, 2 minutes, 54 seconds Uh yeah thank you for the opportunity and congrats on great set of numbers. My uh question was with respect to the upgradation that we are doing. Uh so I 1:03:02 1 hour, 3 minutes, 2 seconds don't know actually whether this is answered or not. uh just wanted to know what is the capeex that we are incurring for upgrading to Topcon and how many 1:03:12 1 hour, 3 minutes, 12 seconds months or days of revenue loss uh we will be having for upgrading this 1:03:28 1 hour, 3 minutes, 28 seconds please go ahead hello yeah please go ahead hello yeah uh So uh uh I don't know 1:03:36 1 hour, 3 minutes, 36 seconds whether this question is answered or not but my question is with respect to the upgradation of the uh upgradation to topcon capacity. So what is the capeex 1:03:45 1 hour, 3 minutes, 45 seconds amount that we are doing and what is the uh number of days or months that we will be having the revenue loss uh during this upgradation. 1:04:03 1 hour, 4 minutes, 3 seconds Hello Hello. Am I audible? 1:04:13 1 hour, 4 minutes, 13 seconds Yes. Ladies and gentlemen, the management line has been disconnected. 1:04:17 1 hour, 4 minutes, 17 seconds Please hold while we quickly get the line connected. 1:04:29 1 hour, 4 minutes, 29 seconds [music] Heat. Heat. 1:04:35 1 hour, 4 minutes, 35 seconds [music] 1:04:41 1 hour, 4 minutes, 41 seconds [music] 1:04:51 1 hour, 4 minutes, 51 seconds [music] 1:05:04 1 hour, 5 minutes, 4 seconds [music] 1:05:12 1 hour, 5 minutes, 12 seconds Ladies and gentlemen, thank you for being on hold. The management has been reconnected. Thank you and over to you. 1:05:23 1 hour, 5 minutes, 23 seconds Hello. 1:05:24 1 hour, 5 minutes, 24 seconds Yes. Uh yeah. Hi Mr. Sha. 1:05:26 1 hour, 5 minutes, 26 seconds Yeah. Yeah. Yeah. So uh uh I was asking that with respect to the new operation that were we are doing to topcon uh what 1:05:34 1 hour, 5 minutes, 34 seconds is the capeex amount to it and second what is the revenueless loss in number of days or months that we have to see. 1:05:42 1 hour, 5 minutes, 42 seconds So uh Mr. We are expecting a capex around 250 270 cr as of now and uh we are estimating that the revenue loss 1:05:51 1 hour, 5 minutes, 51 seconds will be around for 15 days. What we are estimating for half. Yeah. Okay. 1:05:58 1 hour, 5 minutes, 58 seconds Yeah. This is important to note that this 15 day period is just for half the plant. So as we mentioned we are waiting 1:06:06 1 hour, 6 minutes, 6 seconds only one time. So 15 days of revenue loss will happen on account of that line. The other line will continue to function as per usual. 1:06:17 1 hour, 6 minutes, 17 seconds Got it. Got it. And uh ma'am for this uh quarter can you uh give us the realization of sales and modules for March? 1:06:27 1 hour, 6 minutes, 27 seconds For March specifically. 1:06:30 1 hour, 6 minutes, 30 seconds So uh I can I can or you can borrow or you can give current uh what current rates are in April whatever you want. 1:06:39 1 hour, 6 minutes, 39 seconds We can tell you because yeah so current is around 13 13 and a half cent per watt peak per cell and 22 to 22 and a half 1:06:48 1 hour, 6 minutes, 48 seconds cent per watt peak for module. This is what we are seeing right now. 1:06:54 1 hour, 6 minutes, 54 seconds Okay. Okay. Uh got it ma'am. Yeah that's it from my thank you. Thank you. 1:07:03 1 hour, 7 minutes, 3 seconds Thank you. The next question is from the line of Anik Mitra from Fenurics Solutions Private Limited. Please go ahead. 1:07:14 1 hour, 7 minutes, 14 seconds Sir, am I audible? Yes. Yeah. Hello. Yes. Uh my question. Yeah, please. Yeah. 1:07:23 1 hour, 7 minutes, 23 seconds Uh so ma'am uh I just want to understand the uh transmission from your existing uh monopol. 1:07:32 1 hour, 7 minutes, 32 seconds So what to look at is the what is the tips involved per gawatt? 1:07:38 1 hour, 7 minutes, 38 seconds Yeah. So from 600 we are adding additional equipment to our 600 megawatt monop line to upgrade it to topcon. So 1:07:47 1 hour, 7 minutes, 47 seconds this will increase the capacity by virtue of the upgrade by 150 megawatt and the planned capex for the top line 1:07:54 1 hour, 7 minutes, 54 seconds is around 250 to 270 uh cr 250 to 270 cr. Okay. Okay. 1:08:04 1 hour, 8 minutes, 4 seconds Correct. 1:08:05 1 hour, 8 minutes, 5 seconds And uh madam uh for John you got a buffer uh means the new banker means new uh 1:08:14 1 hour, 8 minutes, 14 seconds addition. what sort of uh kicks per uh megawatt we can uh estimate. 1:08:23 1 hour, 8 minutes, 23 seconds So uh for inance vapor we we are still on the evolution phase. Uh we are evaluating the how much it will be the 1:08:31 1 hour, 8 minutes, 31 seconds total cost for this facility and we will update you once the the confirmed quotes are available with us. 1:08:42 1 hour, 8 minutes, 42 seconds Okay. 1:08:44 1 hour, 8 minutes, 44 seconds Is there any timeline uh for breakfast like uh are you considering any specific maybe 28 29 anything in your mind? 1:08:53 1 hour, 8 minutes, 53 seconds So we have signed an MOU and we are we are in technical discussion and team building phase. The target is to commission ahead of the ALM list 3 1:09:02 1 hour, 9 minutes, 2 seconds deadline of June 2028 which will mandate the Indian origin wafer for the government funded projects. 1:09:09 1 hour, 9 minutes, 9 seconds So we are working in this uh timeline. 1:09:15 1 hour, 9 minutes, 15 seconds Okay. Okay. Got it. Thank you sir. That was from my 1:09:23 1 hour, 9 minutes, 23 seconds Thank you. The next question is from the line of Hardik Jen from Whitstone Financial Advisers. Please go ahead. 1:09:32 1 hour, 9 minutes, 32 seconds Yeah. Hi. Many congratulations for a great set of numbers and thank you for the opportunity. So just uh one question 1:09:39 1 hour, 9 minutes, 39 seconds uh in in in uh this quarter's uh balance sheet we've seen some increase in uh debtors and inventory. So do you think 1:09:48 1 hour, 9 minutes, 48 seconds uh your customers are still facing some liquidity issue and there's some uh issues with the off tech still. 1:09:56 1 hour, 9 minutes, 56 seconds So uh let me answer your question. So the increase in the working capital is largely driven by uh this the inventory 1:10:03 1 hour, 10 minutes, 3 seconds and the receivables. So first on inventory this is higher due to the capacity expansion with all 10 line capacity doubling and the ramping ramp 1:10:12 1 hour, 10 minutes, 12 seconds up of module protection. In addition the shift in product mix module has led to higher raw material inventory as module 1:10:19 1 hour, 10 minutes, 19 seconds operations are inherently more inventory intensive and um regarding receivables uh the 1:10:27 1 hour, 10 minutes, 27 seconds increase also the higher higher business volumes and the more diversified customer base. Importantly the portion of these receivables is backed by letter 1:10:35 1 hour, 10 minutes, 35 seconds of credit from prime bank which mitigates credit risk. So this the increase in in the line of uh the business operations. 1:10:47 1 hour, 10 minutes, 47 seconds Okay. 1:10:47 1 hour, 10 minutes, 47 seconds But also in line with the industry benchmark also but uh in general because we we seeing in some some of the EPC players balance 1:10:56 1 hour, 10 minutes, 56 seconds sheet that the receivables are increasing across the industry. So do you think there is some issues with the payment from some of the states or uh 1:11:03 1 hour, 11 minutes, 3 seconds from this scheme uh are your customers facing those issues? 1:11:07 1 hour, 11 minutes, 7 seconds So we are not directly participating in the government tenders. Instead we are taking the letter of credits from uh these these players. 1:11:18 1 hour, 11 minutes, 18 seconds Okay. Thank you. 1:11:23 1 hour, 11 minutes, 23 seconds Thank you. The next question is from the line of s Abdulli from fires essence. Thank you and please go ahead. 1:11:32 1 hour, 11 minutes, 32 seconds Yeah, good evening. Uh so I have two questions. The first is uh when you say that you're transitioning to the topcon 1:11:39 1 hour, 11 minutes, 39 seconds technology uh what impact does this have on the margins of that particular line 1:11:46 1 hour, 11 minutes, 46 seconds and the second question is with respect to the linton partnership uh I just want to know roughly what kind of commercials etc I mean you don't need to have you 1:11:54 1 hour, 11 minutes, 54 seconds don't have to go to exact figures but what kind of commercial arrangements will we have here and will this be an exclusive arrangement with them 1:12:03 1 hour, 12 minutes, 3 seconds so Um uh regarding your first question, it will be very difficult to uh comment on the margin as of now on top upgrade. 1:12:11 1 hour, 12 minutes, 11 seconds So you you are aware that the top 10 is the new technology and you will get a higher efficiency on sales. So as of now to comment on the margin on the date of 1:12:20 1 hour, 12 minutes, 20 seconds completion of top one is very difficult to comment on but obviously we expect top one will build a better margins. 1:12:28 1 hour, 12 minutes, 28 seconds uh regarding uh regarding conversion to uh with type with linton uh I'm ending out a sense now 1:12:35 1 hour, 12 minutes, 35 seconds so with linton of course they are uh they are manufacturers of the vapor and uh ingot equipment so it's not an 1:12:44 1 hour, 12 minutes, 44 seconds exclusive arrangement because of course they have um I mean that's their main business for uh to supply the equipment 1:12:52 1 hour, 12 minutes, 52 seconds but definitely the broad uh understanding is that they will be helping us with this uh technology and 1:12:59 1 hour, 12 minutes, 59 seconds with adoption of the technology here in India they will be training our manpower for the same 1:13:06 1 hour, 13 minutes, 6 seconds and uh just to follow up in return uh I mean is there a fee involved here or is there some kind of a royalty or uh what 1:13:15 1 hour, 13 minutes, 15 seconds is the you know the nature of the arrangement yeah I don't think we have the adequate commercials to disclose on that front 1:13:23 1 hour, 13 minutes, 23 seconds with respect to what the fee structure would be but Uh once we have the same we will definitely get back. 1:13:31 1 hour, 13 minutes, 31 seconds Sure sure. Thank you so much. Thank you. 1:13:36 1 hour, 13 minutes, 36 seconds Thank you. The next question is from the line of rehy from Indis Equity Advisor. Please go ahead. 1:13:42 1 hour, 13 minutes, 42 seconds Uh thank you for the followup. Uh just wanted to confirm. So we you're marking 250 kores for the top corn upgradation. 1:13:50 1 hour, 13 minutes, 50 seconds Apart from that in the last call, I think it mentioned somewhere around 2,800 to 3,000 kores of capex for the next phase. So that takes us to about 1:13:58 1 hour, 13 minutes, 58 seconds 3,3,200 total. And we also talking about adding inot wafer. So which is could be 300 400 crores for a gigawatt. So how 1:14:07 1 hour, 14 minutes, 7 seconds confident are we on funding uh this entire capeex expense over the next two to three years? 1:14:14 1 hour, 14 minutes, 14 seconds Yeah. So of course we have like surplus cash as of now for the immediate expansions and as I said we will be 1:14:21 1 hour, 14 minutes, 21 seconds raising uh some amount of debt also to support the quick expansion. So as for our projections we don't see any concern 1:14:30 1 hour, 14 minutes, 30 seconds as of now. Obviously the idea is to manage the debt level prudently which is what will be our interest area going forward. 1:14:41 1 hour, 14 minutes, 41 seconds Noted. Thank you very much. 1:14:47 1 hour, 14 minutes, 47 seconds Thank you. The next question is from the line of Ankush Agarwal from Search Capital. Please go ahead. 1:14:54 1 hour, 14 minutes, 54 seconds Yeah. Hi, thank you for taking my question. Uh so just one clarity I wanted like uh one of the commentaries this quarter has been that uh you are 1:15:03 1 hour, 15 minutes, 3 seconds trying to sort of uh thinking about how to sequence the new uh the next set of KEXs uh which earlier was not the case. 1:15:12 1 hour, 15 minutes, 12 seconds that will come here showed up this quarter. So I was trying to understand is what is driving this sort of change. 1:15:18 1 hour, 15 minutes, 18 seconds Is it because that you want to see how the industry shapes up with the new ALCM uh or is it in terms of sort of you know figuring out how to uh fund the project. 1:15:31 1 hour, 15 minutes, 31 seconds So just trying to understand like what has changed between last quarter and this quarter wherein the comment sort of shifted in terms of that you are not 1:15:39 1 hour, 15 minutes, 39 seconds very clear on how to go ahead with this plan. 1:15:44 1 hour, 15 minutes, 44 seconds Uh I don't think there has been any change definitely we are going to expand and scale up as committed but we do not 1:15:51 1 hour, 15 minutes, 51 seconds have any additional update to give at this moment and that is why we are uh waiting to come back with announcements 1:15:58 1 hour, 15 minutes, 58 seconds on the scene. So definitely as mentioned earlier also we are um working hard on 1:16:05 1 hour, 16 minutes, 5 seconds the timeline of June 2027 and whatever capacities we've announced remain in place. So we are just working 1:16:13 1 hour, 16 minutes, 13 seconds to ensure that we are able to meet those timelines right but now almost being made. So do 1:16:21 1 hour, 16 minutes, 21 seconds you think that one year is sufficient to go from like zero to uh commercial production for this size of project? 1:16:30 1 hour, 16 minutes, 30 seconds Given that now we are already uh starting with May and June 27 is the target. So do you think that one year is a sufficient time frame for going from 1:16:39 1 hour, 16 minutes, 39 seconds scratch to you know getting that line running for this size of project? 1:16:44 1 hour, 16 minutes, 44 seconds Yeah, I mean we have been working on it as mentioned it's been quite a few months that we've done a lot of homework. We've worked on the team 1:16:51 1 hour, 16 minutes, 51 seconds building. We also have researched a lot on the technology. We've made multiple visits to ensure that we are well informed of what we are getting into. So 1:17:00 1 hour, 17 minutes definitely a lot of work has already been done. So I would not uh treat it as starting from scratch. Other than that I would say we are midway implementation. 1:17:10 1 hour, 17 minutes, 10 seconds Okay. Good. That was all. Thank you. 1:17:18 1 hour, 17 minutes, 18 seconds Thank you. That was the last question for the day. I now hand the conference over to management for closing comments. 1:17:28 1 hour, 17 minutes, 28 seconds Yeah. Uh thank you so much everyone for uh joining today and being a part of the call. Uh 1:17:42 1 hour, 17 minutes, 42 seconds thank you on behalf of Websol Energy System Limited. That concludes this conference. Thank you for joining us.