Q1 2022 Azure Power Global Ltd Earnings Call
Ladies and gentlemen, the Danville, Kentucky, Oklahoma Conference call. Please stay connected and the call will begin shortly.
Participants you have been connected to a jump all corn please call me.
Please stay connected.
Al will begin shortly thank you.
[music].
Uh huh.
Ladies and gentlemen, good day and welcome to jump onboard fiscal first quarter 'twenty 'twenty two earnings conference call.
As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions. After the presentation concludes.
Should you need assistance during the conference call. Please signal and all Brito My blessing stopped then needle on you touched on for them.
Please note that this conference is being recorded.
And I'll hand, the conference over to Mr. Weil Gotshal mentioned it.
Investor Relations at nice Youll Pablo.
Thank you.
Thank you Mr Benson.
Thank you and.
And good morning, everyone and thank you for joining us.
On Monday evening.
The company issued a press release announcing that.
Thank you.
Okay.
Thank you Bob.
A copy of the press release and the presentation.
Available on the mist protection.
That's right.
Hum.
Okay.
When you look at the.
Oh.
Sure what vehicle, that's always going to have to you know voice is breaking.
Okay.
But then people will start the call by.
Going to we think a key highlight.
Let me follow up with an update on our projects under construction technologies.
Okay.
I Wonder and then provide an update on what.
And then we will wrap up the call Ben people waiting.
Can you quantity.
Sorry, I can't give you guidance.
Okay.
Quick question.
Please note our safe Harbor statement contained within our property.
Has anything materially.
And available.
It makes that important integral to all our remarks.
There are risks.
You bet.
Cause our results to differ materially from those expressed.
Our implied by such forward looking statements.
So we encourage you to review the press release, we put maybe an hour.
And presentation on our website for a more complete description.
Also contained in our presentation materials are negligible opex and non-GAAP measures that we reconciled to the most comparable GAAP measure.
I am deeply inflation are also available.
Interestingly presentation material and then whats booked.
It is now.
Okay.
Thank you Rick.
And a very good morning, everyone.
As you all know in decades, COVID-19, I believe it to be in the third quarter during April and May.
We have a massive medical abbott against us.
The country, giving you speak I don't cooperate.
Along with local fiction greatly restricted movement.
But.
The beating inflation baked with EBIT ended June and the new guidance.
Makes it valuable.
Yes.
I can speak about.
About 600 million doses.
And then getting big and tall population as it were.
Yes.
Okay.
We get good bad employees and stakeholders in the fight against the pandemic.
Tableau Nishu.
Focused on supplementing medical supplies.
Tracking the health and wellbeing members and their families.
Organizing and Betsy.
Mark.
And providing what they look for Bob.
Exactly.
We also organized.
Right right and I'm happy to report that.
99%.
Right now all of that.
I know that some countries across the globe are still battling the pandemic and I wish them all the best in dealing with COVID-19.
Moving on.
Happy to report that we became significantly.
Next bill will come back with Walker.
Full year lineup.
It's built on humans right.
Okay.
Good afternoon.
Hi.
Sure.
Has that improved.
And that's been in the mix.
Now hooked up in the low risk category compared to the medium term.
Yes.
MCA, the leading ESG rating.
Great.
Definitely sneakers and the top of our guidance.
Local utilities pickup and probably the highest amongst our peers in the country.
We also completed a diet verified carbon unit.
To offset that Coke, Brian Glenn It shows that 2019 'twenty drinking.
And you can continue to component to set on a path towards carbon neutrality.
We continue to drive hard to improve our ESG.
Amit that demonstrate that leadership.
You have a couple of immediate of navigation to the block subsequent to quarter end.
IFC in IFC, Gis, because I've been a long time, but bulk of the fan base.
And at a major role to play.
Danny recently Covid impact.
94% stake in the company.
One of the largest Canadian pension funds with net assets of over 100 Canadian colleagues.
The confidence that global long term patient interest of Covid, Catherine indexes like almost at least in Azure.
Demonstrate the strength of our company.
David has been up in the Permian.
Thank you Pablo.
The strong governance.
And talking to be go back to that call.
Thank you.
Thank you Omar.
Paul.
You bet. Thank you.
Also strengthens our position in terms of meeting GAAP in the classroom.
Pipeline.
We also recently.
The bulk of the debt capital markets.
Brian maybe you can retire.
Recall.
You showed at <unk> and at this point.
Premium participation from global asset managers.
You can access the buybacks.
Is that mostly by order book.
Keith.
But you should close.
And the coupon and the high yield segment.
Any business.
And the newest offering.
Any Indian to anybody in our company to date.
Actual result in over 200 basis point annual savings in London, and just talk about a 600 megawatt of underlying assets.
You could even call.
Followed by <unk> physician.
Alright.
Both equity and debt GAAP Linda.
We also reported last quarter.
The agreement concerning.
For Youtube.
This is the first ever.
And after a positive free and signifies our commitment to capital discipline by recycling capital.
Okay perfect.
We added the profit gaming that bumped into optical and.
Mendes and see the transaction closing over the next few months.
Yeah.
I had mentioned in my previous remarks.
We are looking at it.
<unk>, it's Mike.
Bringing into wind and solar hybrid.
Continuing with deep pockets debated and a few auctions in last couple of months and have done some capacity.
If you have anything measurable.
We firmly believe that has been actually move towards providing EBIT basketball renewable energy.
The inventory will become important technology additions.
The blend for our portfolio.
I had mentioned affect EBIT, not all green hydrogen and dumping towards call tactical.
Taxable income.
Industry.
We continue to monitor developments in both.
<unk> EBIT banking technology, and we'll keep you posted as the peak could be guidance.
Yeah.
On the four gigawatts target for which we have to get to the Balsam Vicky.
Yet keep buying property that Damon.
We had a positive update on Turkey and Panama.
Following an agreement with a couple of distribution companies political block 800 megawatts.
This is Bob with the broad strength of 3000 megawatts.
Gross profit.
The manpack healing.
Do you expect to have PPA.
What about the <unk>.
Of the 800 megawatts.
As if I can be pets.
In the news interesting by Pablo.
With some company.
Despite the pandemic.
I will demand pick up.
Clearly bounce back.
Weak demand 100 gigawatts.
It is encouraging with comps Dixon.
My follow up with inflation.
Yes.
More megawatts operating maybe you did at the same time last year.
The rooftop portfolio.
There has been 11%.
The increase in EBITDA from operating assets.
<unk> taxable income.
Operating assets during the quarter.
We continue to see steady improvement.
Okay.
The government continues to support the renewable energy sector any yet.
<unk> hundred gigawatt.
Installed renewable energy capacity in the country, making it the fourth largest in the world.
On the timing.
That is independent.
And possibly export could easily.
Goldman is by definition, a 450 gigawatt renewable energy by 2000.
And more importantly announced the Bos.
India both lines in energy by 2047, <unk> hundred deal dependent.
This is a significant announcement given back the climate change and benefit.
And as you sell land bucket greatly enhances the renewable energy that they thought.
Okay.
Most are indexed to oil and gas needs out of Mexico imports and the only way towards energy independence.
Thanks to bank most heavily on guidance.
Another significant positive development of Ethan landmark investment from the Opex guidance.
It could be in the country allow conference actually got it.
The follow up call.
And this data coming up.
This is the life of the tremendous boots.
Confidence in the vector and then what our growth strategy with focus the gigawatts installed capacity in the country back empty.
For the first time, Linda the athletes Forum for Micky has Nathan the law.
But it has to be compensated on a phone book of needle Coke.
And in that sense.
Accomplishments in clause of the opposite.
We continue to look for predictions from our investors and stakeholders on how we can further improve our disclosure and make it easier for you to understand and value our business.
With that I would like to turn it over to Mark.
Yeah.
[noise].
Thank you Randy.
As we last reported.
The second pool.
The second wave of Covid at its peak.
In fact at our projects under construction not only disrupting the supply chain, but also impacting construction activity at several of our sites.
Subsequent to the 11th <unk> and the supply situation.
The group significantly.
As of today, we have completed and commissioned 400 megawatt.
600 megawatts.
Okay and another 100 megawatt has also been completed and is now awaiting commission the.
The remaining capacity in this project is expected to go live in the next 12 months.
Thanks for that.
And then our notification granted extension to all projects with commissioning debate on or after April 2021.
We don't expect it.
Any penalties for DB.
Construction on 300 megawatts.
<unk> is now underway full swing and construction.
Nine project estimates.
Got it.
Welcome Sam then it picked up after the initial COVID-19 related delay again due.
Due to the second wave of Covid and increments monsoon, but despite that after the initial 25 megawatts, we have commissioned another $12 five megawatts capacity.
The next one five megawatts currently under commissioning.
290 megawatt project is expected to be completed and commissioned by the end of this calendar year.
We have provided some highlights.
Accomplishments on page six.
As mentioned earlier, we received a dominating income MSCI.
ESG and ESG the school based on opinion.
Diluted category.
Highlighted ISO 45001 certification earlier, this year, which demonstrate focused on occupational health and safety.
Happy to report we have also recently bumped the green.
Safety Culture Award for two zero to one from <unk> Foundation, which signifies the efforts we have put in to ensure safety culture is embedded across our project locations and sites.
Our carbon free condition that has a budget about 1 million tonnes of equivalent this quarter, bringing the total to $15.0 million tonnes equivalent injection.
Next carbon neutral.
We have planned for planting.
15000 feet in the immediate vicinity of our 600 megawatt project site during this year.
Also remain actively engaged with the communities, where we operate and provide.
Book to medicine, and Ted facility, especially on the pandemic.
We are now looking to rollout.
Sustainability, calcar, physical and continuously strive to implement best practices to enhance our sustainability.
On the technology front, if you will continues to be an early adopter.
Among the first companies in India to install a large scale project based on multiple panels and we have just started construction of another large scale projects using bifacial technology, where we expect to yield excellent.
Florida, just about 90 days.
These efforts ensure our projects are based on I'll take it with the best returns metrics.
Looking at industry and regulatory update on page six and.
<unk> achieved 100 gigawatt installed renewable energy capacity has been a big milestone and the country continues to offer solid growth opportunities along with adequate confidence measures for investors in the sector.
The government of India announced recently is USD 40 billion.
The heat pumps linked package food distribution company.
It will improve the health of the financially weaker this one I guess.
Both are expected to help clear the backlog of BSA that the power supply agreement to be executed with discounts who have not been finding theaters.
Which was excellent but the second go big and tall in Paris.
The good news is that for plug power demand, India has started to build out as the country emerges from the second week.
We are pursuing new opportunities such as wind and hybrid and show you that we shall only Bigfoot project is commercially viable.
We continue to believe that we would be able to update the four gigawatt PPA value of pizza status. This was accurate contracted pipeline and provides a return above the cost of our capital.
With that.
Although the bottom to discuss the quarterly results.
Thank you Molly.
Turning to page nine.
Hi, Jonathan <unk> 2021.
Have you had hoped.
I'll try to make good luck on the PPA RBC basis.
Which is 23% higher than what you had before.
Our portfolio of 690, <unk>, how do you mean, Kevin.
In the previous quarter.
<unk> portfolio of <unk>.
Q rooftop portfolio.
Which is in the process of getting construct with ADM.
Financials number continued to consolidate rooftop.
Thompson policies is completed.
On page 10.
Looking at the quarter.
How about in the news continues to increase and you can take more projects.
After adjusting for stock compensation expenses.
Go ahead Ben.
$57.0 million U S.
14%.
How do you think about trying to increase in revenues from the same quarter in the prior year.
Turning to G&A.
On page 11, our junior increased marginally by Hyperscale.
Excluding nonrecurring items.
Randy.
Flat year on year.
And you remain focused on controlling our costs.
Thank God FY 'twenty, two cash G&A guidance about 10% from FY 'twenty one.
Sure.
The recently issued a green bond.
And 40 million U S.
Coupon in hindsight moved out of India.
You seem to be financings both in the domestic.
These markets.
Have resulted in substantial savings in interest rate.
Thereby improving article dated.
Refinancing at lower costs reflect improved could you remind of the growth supported by strong sponsors such as <unk>.
We continue to expect lower interest rates.
As well as new financing and refinancings.
Turning to stock compensation expenses.
Right.
Stock compensation expenses will increase.
Breaking out G&A.
For the first quarter of fiscal 'twenty, you're going to do.
Thank you Tom you guys totaled $4.0 million.
Despite the challenges in the past few quarters.
Our dsos have been fairly consistent right around 120 days on an evident in the recent quarters.
We believe there will be further improvements in the future.
These new gold projects with high grade counterparty and as we continue to focus on improving our collections.
On page 12.
You can see that we got from operating assets increased about 11% you hit on yet.
Net cash from operating assets rose about good question.
<unk> talked about $10.0 billion.
We talked on the last 12 months was about $182 million.
Resulting in net debt.
Non operating items.
$6 six.
Thank you Glenn do you want.
Finally.
Looking at page 13.
<unk> balance sheet information.
We had about $96 million of cash.
Cash equivalents.
Net debt stood approximately at one 3 billion.
As a reminder for those.
Looking at.
The hidden assets of 108 million <unk>.
Rooted in other assets on our balance sheet.
Would be netted against that goal.
This is directly linked to the foreign exchange agent, we have put in place related to a lot of green bonds.
During the second quarter.
Used part of these assets related to our first green bond.
To reduce the leverage on that.
On the Green bond portfolio.
With this high Boston to Ranjit to provide some commentary on that.
Adam.
Thanks, Brian.
I'm very happy to report that despite major distractions during the quarter due to COVID-19.
Able to achieve operating.
Both have revenue guidance for the quarter provided during last quarter.
Even though we have Jeff talk a little bit of coffee Brock from the SEC.
It can be as of now.
We would reiterate our number for the guidance.
But we'll keep the market posted an upcoming.
For second quarter 2000 <unk>.
Victor revenue could be between INR.
603000.800 billion.
And the units to be between 25%. Thank you Ron.
Okay.
We will be happy to take questions. Thank you very much.
Thank you very much.
You may now begin the question and answer session.
Anyone who wishes to ask the question, maybe I'll start and one on the touch tone telephone.
If you wish to remove yourself from the question queue.
Our best talent.
Lots have been for any questions <unk> handsets.
My last final question.
Ladies and gentlemen.
Wait for a moment, while the question queue assembles.
Participants.
Some of that start in one.
To ask a question.
Yeah.
The follow up question is from the line of Philip Shen from Roth Capital Partners. Please go ahead.
Hi, everyone. This is Justin Clare on for Phil today.
So I first wanted to start off so there is the 800 megawatts of projects are related to the manufacturing link tender.
Have recently had the PSA signed and I wanted to understand the next steps in this process here it sounds like you could sign.
PPA in the near term, but are you in negotiations right now for that PPA and could this happen.
The next week or month or what's the timeframe expected.
Hey, Justin.
So the question that this is the most important question for us.
We are very very happy that he.
He has signed the 800 megawatts of DSA.
<unk> caught up 800 megawatts, which is our allocation.
Code can go throughout the year.
The one third will come to us.
Good allocation of the 800 megawatt.
PPA there is nothing big.
Being negotiated or anything.
Or anything else.
Alright.
Alright, that's all thank.
I keep going through their internal process to get it to work to find the PPA and that is the question.
<unk> been dividend writer, we signed.
PPA is what we have been told to take these linked to their internal profit, Florida for Covid.
And then dividend for the profit to the agreement.
Okay got it.
So then I wanted to understand it sounded like you might have to take a markdown on that PPA or at least there was that possibility.
Could you talk about that potential still and I think in the past.
Could be 10% to 15%.
So what does that likelihood for the marked out what could the amount of fee and then and then is there is there a negotiation going on on that or is it really the SEC. He is going to come to you with what the.
PPA will be.
Yes, definitely there is no negotiation Greenland.
They have already been signed apathetic or <unk> 61 based out of at the distribution company. So the PPA will be signed at the Booth, Steven Binder Picky picky.
Vicki.
Yeah.
Our margin and there is no data no.
Patient involved whatsoever.
Got it okay. That's that's clear. Thank you alright, and then so there's the 800 of PSA as that have been signed so far what's your expectation for the remainder of the capacity related to the manufacturing linked tender and then is.
Is it that you will get one third of that.
Capacity. So so each time, there's a PSA signed you would expect to get one third of that or is there some other way that that might work.
So <unk> been able to be at this.
We expect to get the mine Port Alright.
And by 800, there is anecdotal.
Sure It has.
<unk> been approved by the respective boards the distribution company. So we are expecting those to.
To be inked.
And that can take us to around 3000 megawatts and another polygon megawatts.
Then 500 megawatt distribution company that breakeven.
Talks at Baird.
<unk> was being taken metrics, we can company board the board will take a little bit longer maybe a few weeks, but the bulk.
Meg.
It goes back.
Uh huh.
Talking about Shouldnt happen in profit and that should be it should happen in the next vehicle.
Okay, great. Thanks for taking my questions I will pass it on.
Yeah.
Thank you.
<unk> and <unk>.
<unk> one to ask the question.
The next question is from the line of Puneet from HSBC. Please go ahead.
Yes. Thank you so much and congratulations Keith we've moved to the first half.
My question is do we have to start investing on the manufacturing side now for the PPA.
So thanks for the question Anthony.
So manufacturing is.
Alright, David.
Our manufacturing contracts opinions that needs to be signing COVID-19.
Thank you.
So.
As soon as co manufacturing and contract that we can design than I think we have.
From that base to build the plant.
Once the manufacturing contract that you have.
Hi, Wendy.
I get that.
Arguably the COVID-19.
Based on data.
I would think that their investment you can happen about a yard or.
Our 15 months after the <unk>.
Manufacturing contract agreements timeframe.
Okay.
The results Mr. Functionally the way you if I heard you're fulfilling risks full 500 nickel.
So this is the question that we are.
Maybe vicki and even do it with our technology partner manufacturing partner to see what makes defense broadband how does it all.
Or does it vary uncle with Baird.
The modular construction.
So you'd have to see.
I I'm sure.
Ill be done for example, 50 megawatt kind of.
So we have to figure it out well get there right.
Mitch began actually setup.
You know.
He has also joined us and be able to close that gap.
The PPA signed first and then discuss it.
Got it.
Not getting how do you see it won't be.
<unk> committed to building the manufacturing capacity and therefore, I think you're going to defend that.
That it is going to help us do the manufacturing capacity.
They are happy to keep it.
This book.
Forgetting about PPA.
Andrew.
My second question is you said.
Thank you and a coupon of six one minus maybe seven.
Assistant and in fact in my House.
But when I look at the project costs, which are disclosed this time.
Samsung DC basis.
Back in December 2019, equaled 146.
It is still more soften that as time moves.
As James Sensitively on these.
Anything yes.
So.
And it fits the unfortunate that the DC costs.
Is being portrayed in poultry.
Is that relatively few megawatts were commissioned in this quarter and.
It is actually an accounting number given what table.
At March 31st what was capitalized.
On June 30th capitalize on our books, you take that number divide that by the number of megawatts that have been published and then you come out with.
I will get a bigger number.
That number doesn't fully reflect the cost of.
The cost of.
Hello.
The numbers are small.
No it.
It doesn't fully reflect the actual cost of the project.
Alright, the easy cost per megawatt.
In this quarter.
TB.
And the DC costs of 60%.
Doug Boston DC cost is almost the same.
Yes. Unfortunately.
The accounting is done.
Carl.
Hi, Paul.
I'm not at the level of pre Covid, yet and therefore are slightly higher than that but they are normally.
Yes.
And I'd just add to that.
Uh huh.
You see the thing Thats happening is.
You cant just do a like for like DC costs, because what constitutes MBT has also changed back in the day it was.
Quality compliant module with fixed.
Today, we are looking at.
Bulk modules, but looking at by patient we're looking at a lot of things have changed so.
Well megawatt has also gone up.
Well, if we can improve the overall performance has actually gone up so.
So what maybe a metric if the technology standard, but it's the technology changes and the change that we have.
To account for this.
Second thing of course is that.
As we all know interest rates have dropped since what it was two years ago, but of course, that's a different discussion. So so these are the other things thats changing.
But.
So so far the balance 903 megawatts with just simple commission.
What kind of Pls should one expect.
I'm sorry can you please repeat the question.
Solid balance 900 megawatts electrical commission.
Los Angeles, CNS Chamonix coming from those markets.
So so.
So he is.
The guidance projects that is which is under commissioning of which 400 as commission 100, as Eddie and then at the 100 is.
Dan.
This is based on one five times overloading so.
Would expect.
<unk> in the range of 19, 9% to 30%.
The next project is built with 40% overloading, so electric dropped a little bit.
And then the next logic, which is coming up with trackers and <unk> will be well north of 30%. It may be in the range of 31% to 32%.
Oh.
And just also to bifacial.
But this isn't one of them that go up.
No the cost of bifacial could go up and because it is a good book and so that's why.
No.
Just looking at the cost per watt may not be fully.
Probably we didn't give the impact.
Okay.
Okay.
Okay.
Thank you so much my last question is for Stuart <unk> Suisse.
What is the average interest cost and how does the majority is behind us.
Sure.
The increase cost of each bond activity.
Is that actually the coupon is coming closer to 838%.
And then we as you saw.
Speaking of refinancing that projects and Dr. Skippy could become metallurgy and almost be debt under the kind of response, we're getting from lender fifth Varian Crazy. So it has the possibility of financings are getting put.
Put out news, but I'm, saying as Louise.
So again it gives the rent income from Tom's going to help us income, 9% based on project to project.
But have you completed the refinancing of automated deposits have different answers.
Okay.
Thank you so much in November.
Thank you.
Participants you may have.
Thanks, Todd and one to ask a question.
Yeah.
The next question is from the line of Marty.
From Credit Suisse. Please go ahead.
Hey, good evening Miami from credit Suisse. Thanks.
Thanks for taking our questions.
Just on the PSC for the.
The rest of the one gigawatt, maybe you can talk about what PSA is do you expect on that.
Is it still in that $2 six one rupees per kilowatt hour with <unk> margin.
<unk>.
Seven peso or how that's.
Looking how are you thinking about that.
Hi, great. Thanks for the question Phil.
With C pulse megawatt timeshare is.
Likely to be at the tool will be 61.
Got it.
Megawatts over 50 megawatts that I'm talking about the ones that have vehicles they have been.
Approved.
By the respective boards of the distribution company I'd add that it will be 61 pipe.
Mark.
Perfect.
For the future projects like how are you thinking about the PSA is the bps for future auctions because.
The.
The solar hybrid which you won recently this month to sign a 2.3 fine right. So does that pressure.
$2 six one for future auctions on how you're thinking about it.
Sure.
Bank defaults. He called me good luck with Pine Bend NAV you can then take your thoughts the profit off marketing that next trend that has been given.
Because I guess the best projects at that time.
Okay.
Yeah.
So we'll look at it around the bad thing, let's say four to five months down the road. That's how I would think you could look at it because that's a little bit of distribution companies.
The current status.
We are talking about.
I've Oh.
Uh huh.
Reflective of the of the tightened up a bit a few months back and then we do the new tranche. The second tranche. It can be reflected in both the optical looks at it from there.
Got it.
And then maybe just in terms of the timing shift.
All of these.
Signings of auctions of PSA is.
With the SEC.
So obviously when the government has to deal with right now, but in terms of timing or maybe from an equity point.
On the <unk> point of view.
When do you expect.
Two.
Good.
$115 million of equity for these projects and.
How do you.
What plans do you have right now and what are you thinking about potential options to fund the first gigawatt for yourself.
No.
DSO and <unk>.
<unk> got it right.
It goes to 200 megawatts of the bulk transfers of 800 megawatts do you get tobacco.
Yes.
We will start the profit.
Our financial close and so on.
As I had mentioned in my last fall, we have already started acquiring the land. So the land acquisition is well underway.
You know it will be I don't know if you had a very great position to start planning the projects construction on the ground as soon as the opportunity that being at that time.
As you noted you had two years to build.
So that means that typically the equity requirement.
You don't happen about nine to 12 months before the <unk>.
This commission.
Therefore.
The equity need for us would come about that year from now assuming that the operative agreements signed this week.
You'll need the equity and about a year from now.
The belt before Baxter B B should are you involved with keybanc.
And that goes to the shareholders stakeholders and figure it out.
We won't get paid based on that.
But we have plenty of time.
Got it got it and then that's helpful.
Maybe just one last one from me jump back in the queue just in terms of the.
Overall supply environment for solar unknown.
Are you increasingly getting into win so how are you thinking about the.
Either the modern supply when prices and turbine supply and prices for next two years.
As far as.
BMW module prices are concerned.
Interline machine got that done.
The pricing is on the EBIT more paper.
Technology is a bit more.
Is largely dependent on the price of steel whatever variation happens on a quarter.
The bulk of basis on the back.
Yes.
Let's see so.
What we expect.
Good morning, easy to predict the cost.
And the cost of having Dubai as part of the module content.
We understand that there you know that very heavily dependent on the cost of polysilicon and Matt.
At the moment.
We're seeing some stabilization in polysilicon pricing, we are seeing that supply is.
Is easing up and what we hear.
From the manufacturers is that they expect.
To be COVID-19 level over the next.
A couple of quarters.
So that is the what.
What are kind of lumpy.
What we have.
Yes that is what do you have to go on.
We are going to I mean, most of the molecule.
Sure.
Or the next to it yet.
We've done two Indian manufacturer, we are in touch with them to figure out what their view is on that on more impacted and everybody sees that.
A couple of quarters as the polysilicon manufacturing.
<unk>, even see a moderation in guidance.
Alright, Thats really helpful nationally.
Just a follow up on that if I may.
What.
Embedded in the 235.
PPA and yes, that's the last one from me.
Yeah.
Thank you.
Very difficult for us to answer that I don't even know whether I go back.
So I would like to pop on background right.
Alright, Joe pick up offline. Thank you.
Thank you.
The segments you May Press Star then one to ask a question.
The next question is from the line of Moses Sutton from Barclays. Please go ahead.
Hi, Thanks for taking my questions.
Just continuing on the inverter loaded ratio what should we be using in our models. I think you noted a project is down to one four should we still assume one five long term would you be doing one five for bifacial.
And then you've been on top of that are you even thinking of using.
Cynthia molecules down the road as first solar has decided to.
Local manufacturing.
So.
No.
It's really a function of the specific site.
It's a function of how much flipping that we see.
600.
Six projects.
Okay didn't they can add where the installation is the two or 3% lower than.
A couple of hundred Columbus, with where we are building.
Eight projects so over there we dropped it from one five to $1 coal that's one parameter the other parameter as opposed to.
The cost of everything involved you see we paid off the flipping losses.
The incremental investment for the bank and then on your next question, which is on the bifacial module costs out a little bit.
More expensive, we are also going well and we've done some pilots.
If you had the performance of certain other pilots across the country and in vivo.
Understand the gain that is possible with a track on.
Facial modules monitored on a crackle so.
Our growth in the range of $1 three to one five.
As the NGL overloading.
When it comes to plug that's very helpful.
I'm sorry.
Sorry.
There was a question on <unk>.
Pinpoint so so on first solar I think.
Let them come on come on I think we are planning to come in with the 87.
Let's see how that felt the facility sort of.
Get underway and when they would be ready for full production and at that time, depending on the market, we will take a view of how that.
That would sort of ticket.
Thanks, that's very helpful and should we think for the inverter loader ratio should we think of that 1314 range as a better assumption beyond April 2022, when a good portion of what you're building is going to get affected by the safeguard duties.
Or should we not think of it that way.
No I don't think we can think of it that way because.
It's largely driven by the site conditions and.
And the cost of.
Panel bypass sharing traffic right.
All of these things which would.
Eventually lead to the decision in terms of whether it's going to be one three or one point so.
Whenever we have reached a huge the bifacial and tackle them.
Okay loading drops.
If you go to the southern leg it you would say.
Karnataka Tamil now do you might still go with one five because the overall radiation as a big law. So.
<unk> energy, which is split maybe a little lower rate.
Got it got it and then for the solar wind hybrid projects.
What's the IRR, we should think of that.
Hurdle rate for the business, there was a bit lower than than the mid teens. So you can sort of get your footprint there or is it in line with the rest of the portfolio.
I think the IRR would not be too different they would all be very similar.
Yeah.
Although I don't know how to model some of these things, but that is a place that's commonly used the risk adjusted returns. So I think that has suggested your tons would all be very similar to what we do in case of a wind project.
We.
The way we model the way we built it for the fact that we can have that didnt more uncertainties compared to solar the deviation in.
Installation is.
You know varies between just a few percent year on year, whereas in the deviation can be a little high so to account for this additional deviation.
And if you use that as the mix.
At a slightly lower.
That's already factored in the <unk> study.
<unk> been steady so once that is taken into account.
The construction risk fairly similar there is nothing more or less an excellent the land acquisition and this can be a little more because you need contiguous land, whereas in wind.
Uh huh.
Installing turbines and building the foundations are little bit more tricky competitors. So there. So these things trade off each other and they're not they're not deal breakers, they're not materially different from each other in the overall scheme of things. So therefore once you account for the resource variability in wind, which is slightly higher than that and then beyond that point.
Assume that dividends would be similar for solar or wind.
Okay, No very helpful and then last one on trackers.
We've seen a lot of noise with steel and freight impacting the economics on trackers.
Capex in India, as you're a lot lower than.
The fully stocked capex in some other countries how should we think of the tracker costs either on a U S cents per watt or is.
As a percentage of the total capex on the project of course. This is for projects that are in the upper range, because they're using bifacial already.
The cost profile, but how should we think of the type of tracker and its cost profile within the broader stack.
Good question.
The bulk of Protract.
Beyond that the IC.
The technology the bulk of the cost is actually coming in.
And unfortunately over the last six to eight months, we have seen better.
Very significant rise in steel prices and therefore this has pushed up the cost of correctly.
More than what you would have hoped to see.
Same time last year for the company.
Oh, if I if I don't account for the increased cost of <unk> then.
Then you know the cost of <unk>.
So even if I didn't it's solar tracker I have a basic cost structure I'm only going to look at the incremental cost. So if I didn't account for the increased increase in steel then the incremental cost would have probably been in the range of five tenths of <unk> with <unk>, probably be a central Soma.
Great very helpful. Thank you.
Thank you.
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Thank you. Thank you everyone. Thank you very much.
Thank you.