Q2 2022 Azure Power Global Ltd Earnings Call
Ladies and gentlemen, good day and welcome to Idaho, Power's second quarter fiscal 2022 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 Obito by pressing Star then zero on you touched on phone.
Please note that this conference is being recorded.
I now hand, the conference Okay understood that caused a bunch of head of Investor Relations and I sure Hope Pablo.
Thank you and over to you Mr. Benson.
Thank you.
Good morning, everyone and thank you for joining us today.
On Friday evening, the company issued a press release.
For the second quarter of fiscal 'twenty and Purdue.
September took the 2021.
A copy of the press release and the presentation are available on the investors section of hydropower snakebite.
So if I'm a dotcom.
With me today are they don't get good to see.
You will just depend on you.
Pete.
And so I wouldn't come out of it what vehicle.
And you can start up cost might go into key highlights and didn't Miss a beat.
Sure.
We'll leave it there and follow up with an update on our projects under construction.
Operations and innovation.
And in industry IP.
Well one will then provide an update on the quarter and then moving to wrap up the call. It's a neutral rating quarter two fiscal year 'twenty 'twenty quarter.
Quarter three fiscal years, when are you going to do and physically couldn't you couldn't get to guidance.
After this.
End up the call for questions.
Please note our safe Harbor statements are contained within our press release presentation materials and available when a good thing.
These statements are important and integral to all our remarks.
These risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward looking statements.
So we encourage you to review the press release, we published you know my form 6K and presentation on our website for a more complete description.
Also contained in our press release presentation materials, and then I guess.
Certain non-GAAP measures that we reconciled to the most comparable GAAP measures and these reconciliations are also available on our website and the press release to condition materials and analytical.
It is now my pleasure to hand, it over to Randy.
Okay.
Thank you guys.
And a very good morning, everyone.
I'm happy to report that we had didn't meet your ambitions.
Both from home go out office debt this quarter by following Covid appropriate protocols.
Well, you're right, we do see disruptions continue due to COVID-19 and experience, but hope that severity remains constrained.
On the ESG front.
Taking a number of significant steps this quarter towards improving out he gets extended.
We have been focusing on did you think about scope, one emissions and have adopted and electric vehicle policy.
As part of its quality and the new Waco, that'd be company bookcases going forward for the company you would only be electric vehicle.
But yeah about all care about social accountability policy to enshrine socially acceptable and responsible practices.
Do I personally comfortable with Ebola, we have committed to complain.
It tells them and in the classroom and put ourselves in Atlanta.
We have already conducted and let them do it something compliance.
It tells them physically.
And that planning external audit certification in the month of January 2022.
I see a public certification will reaffirm our commitment to maintain labor and booking conditions have put international attendance.
We continue to drive hard good through audio cheap upon them and keep them on speaking about leadership.
Yeah.
Belong DST.
Most important business updates signing up 600 megawatts of property, but even from the picky manufacturing capacity of four gigawatts.
We thought that I understand that he has signed 7000 megawatts.
Yes.
While the sale agreement with the state.
As long as the base, which will translate to another to withhold them keep her name could be three megawatts of Ppas getting signed put out doing very soon.
You got Hoffman and significant developing sports and I can get to a period of weeks on these projects.
Yeah, if the INR two five fold.
The 600 megawatt DC and INR 244, P. B has to be signed under the under the Bush B S. P.
It's significantly value accretive.
We expect that comes.
Comfortably above the upper end of architectural target.
Given the work we have already done the Atlanta acquisition and securing transportation connectivity you can strike to complete these projects before right.
About 10 to 15 manufacturing P T V.
We received letters of award, but I've been in 20 megawatt wind project and.
150 megawatts.
So the hybrid project with picky subsequent to quarter end.
You've got first stick beyond solar for I V O N.
And we firmly believe that as the industry moves towards providing this basketball renewable energy to the grid bin bin storage, maybe two important technology additions are not good for you.
We have already developed significant organizational capabilities in house.
And I'm looking forward to implementation on the ground that are already working on developing lots of insight across the country.
Hello, Bill you are actively developing that capability in new operating area.
Energy heat energy transition, but corporate.
New technologies like Green hydrogen.
The government has already announced the Nashville hydrogen mission and propose policies related to green hydrogen adoption.
I firmly believe that energy storage and green hydrogen are going to change in their energy consumption scenario quite dramatically built into this decade.
As you aim to be at the forefront of these new businesses and have taken concrete steps in this direction.
On the operational front, but maybe you can talk in detail I'm extremely proud of our procurement and construction team given the challenges with C. L.
Disruptions in the first quarter, followed by volatile supply and module pricing more recently.
You get towards the 1% more megawatts up anything in quarter. Two this year than you did at the same time last year.
It has been at 28% year on year, even EBITDA from our operating assets and a 32% increase.
And cash flow to equity from opening after giving a quarter.
We continue to see steady improvement in these metrics owing to our continuous efforts at project sites.
I always put them in the stellar work done by the catheter and beating and raising the lowest costs green bond and refinancing older projects driving down our cost of debt by almost 200 basis points in these projects.
The government continues to support the renewable energy sector in India.
And Debbie you Cynthia in almost 150 Gigawatts.
Install renewable energy capacity in the country, including hydro.
Honorable Prime Minister in his address gearing golf 26 meeting in Blackpool provided five is all but India has undertaken to contribute towards global fight against climate change.
These include number one increased non-profit energy capacity target of 500 gigawatt spectrum in Kentucky.
Number two to meet 50% of the country's energy requirements through renewable energy by 'twenty Kobe.
Number three.
Economy carbon intensity down to 45% by Clinton, Kentucky.
Number four 1 billion tons of carbon emissions from the total predicted that Houston by 'twenty Tobey.
And number five achieved net zero emissions by 2017.
These announcements along with <unk> goal of self reliant and energy 2047, I E. A great deal of Indian independence, clearly demonstrate the vast growth opportunity. The fact that prevents floor is yours.
We are looking at that a beautiful market size.
Approximately 40 gigawatt, but I'm going to be a decade, considering in desktop and get a 500 gigawatts that couldn't be cookie.
Investment in new renewable energy generating assets in adult.
USD 250 billion just within this decade.
In consonance with ambitious targets, but government has recently taken a series of very significant reform measures.
To strengthen operating playbook and boost investor confidence in the sector.
After the landmark judgment from the Apple tried the mill for an equity, allowing Olympic victory data for school that followed curtailments in the stage of Pamela.
Ministry of power recently, but also a notification reinforcing month status for Alibaba plan.
And allowing developers to unscheduled power due to curtailments, because they picked me been constrained badly on exchanges.
It also specified pools to simplify the thoughts with the recovery of costs incurred by developers do you have a change in law or target fitting.
That will provide for a predefined formula to determine the one time charges or embarks on tablets due the change in law and lays down fixed time period part of Hulu.
These are big development that that athlete name and address issues that have been in discussion.
The government is also actively working on enhancing transmission capacity in the country.
Ministry of followed recently notified that paved the way for all the transmission system planning and provide for easier access to transmission that goes across the country from the general network access and the I S. T a system.
This flexibility to the states as well as its been breeding stations to acquire older transfer right.
Capacity I forget the classroom.
In addition, net lidl and Aldi hundred announcement by cost of it.
Driving a resurgence in interest in energy transition to round the clock IV contract.
Oh, not organizational update as you all know around the end of this quarter Mr. Alan Golfing joined our board as the New Chairman empty places to Bangladesh itself as director on the board for six years, including last two years as chairman.
Have you used to have boasted Bonnie that's on the board.
The expense I'd, rather keep the bombing put his leadership and guidance and same thing as you follow.
Mr. Rockne maintenance fighting mix of great leadership and hands on industry experience itself and did that deal with management are already deeply working with him and taking our company to upgrade their accomplishments together.
We continue to look for suggestions from our investors and stakeholders on how we can further improve our disclosure and make it easier for you to understand the value of it.
With that I would like to turn into automotive.
Thank you Angie.
As we lapsed reported the second wave of Covid impacted construction activity.
Subsequently, however, both Quebec and.
Tuition improved significantly often checking and procurement teams work very hard to ensure we adhered to commit a timeline on our projects.
We commissioned 158 megawatt DC capacity and 188 megawatt DC capacity during the quarter.
As of today, we have completed and commissioned 500 megawatt at a 600 megawatt.
On fixed project.
And balance 100 megawatt is to be commissioned and this month.
We also commissioned 150 megawatt.
Each project.
Subsequent to quarter end and are now in advanced stages to commission the balanced capacity into bucket in the current quarter.
Even though construction book on the 300 megawatt class of some nine was impacted due to supply challenges.
Team has rallied and we are confident that we will meet the promise time lines.
We have provided some highlights of our accomplishments on page six.
As mentioned earlier, we are extremely proud to adopt a policy this quarter.
Can you provide a direction towards reducing our scope one emissions, we have committed to ship, 100% easy by 2030 under this policy.
To encourage adoption.
Makers at a bus 11.
We are providing interest interest subsidy to a shop and I'm happy to report that we have already seen do electric vehicles, let's just buy the company and one electric makes us, let's just buy one of our staff members.
Adoption of this policy.
We are hopeful that this policy will prove to be useful in the expeditious transition to electric vehicles. We also obtained carbon neutrality status two offsetting of carbon emissions in our operations and together with our partners to what's an extra play because we hope that it is such a woman in the coming years.
I'm happy to report we have also recently won the Green Tech effective safety Culture Award proposed to run from the Greentext Foundation.
And we're just a walk from India in these areas.
Signifies the efforts we have put in to ensure safety culture, which is now embedded across the project locations and sites.
We have also successfully completed the surveillance audits for ISO 9001, and ISO nine ISO 14001 certification signifying continued.
Continuous focus and improvement on our quality management.
Management systems.
Our carbon free generation is about at about 0.9 billion tons of equivalent this quarter, bringing the total to 11 5 million tons equaling since inception.
Next up on Youtube.
In the process of planting 30000 trees in the immediate vicinity of about 600 megawatts, Rajasthan six projects.
This year.
We have also committed to block 53 for every megawatt beacon stuff.
We also remain actively engaged with the communities, where we operate and provide proactive support towards medical and health facilities, especially on the pandemic from.
We have also constituted a new sustainability committee of the board continuously strive to implement and monitor best practices to enhance our sustainability efforts.
On the technology front, our goal continues to be an early adopter.
Among the first companies in India to install a large scale project based on mono PERC panels and we are also constructing now a large scale project using bifacial chocolate technologies, where we had expected returns in excess of 30% for our nine projects.
These are industry, leading efforts to ensure projects are built and operated with the best returns metrics.
On the operation side, all our projects are now fully connected with our central monitoring system, which has been really cool mobile.
Mobile.
The mobile application has been.
Yeah gradually phasing out laptops at all sites and have provided tablets to a cycle of engineers, who are now always connected with the head office staff.
And Monica.
I think that in 11, the performance of each of our plants on a realtime basis.
This also has some predictive monitoring of our plans to tackle any challenge in its infancy.
Looking at the industry and regulatory updates on page eight it gives a big announcement at Cop 26, and the fact that we recently reached 150 gigawatt installed renewable energy capacity.
Continues to ensure a solid environment filled with growth opportunities in India.
As we discussed during our previous call. We have recently developed organizational capabilities to implement our plans and win in the hybrid space. Our recent wins in this regard the one megawatt wind project and about 150 megawatt Hydro project booked with Turkey provides us an opportunity to kick start this process of diversifying.
A portfolio and move in line with the industry, which is increasingly looking at such a policy is a sustainable way forward and indeed Audi.
We want to assure you again that we shall only bid for projects that are commercially vibrant patents.
One which provides returns above our cost of capital.
With that I.
We started over the problem to discuss the quarterly results. Thank you.
Thank you Molly.
I'm happy to report that.
They executed and also how did the new guidance for this quarter.
Excluding rooftop how do you guys keep $56 9 million.
Against the guidance range of USD 49 to $51 7 million.
We felt significantly I think we shouldn't feel of olive garden.
I'm conscious it's quite good.
One thing to USD five 5 billion.
Cosmos.
Even after excluding this contribution.
I've got a friend of the Guy didn't take.
Significant developments during the quarter.
I need this evening subsequent to the call today.
Sure all of us.
There's opportunities that affected that.
We are very pleased to liberty.
Although she is a simple business.
That means from an impeccable execution, which.
Which we have been focusing on.
Our first PPA execution under.
Under the for the whole project is one such example.
Pardon me.
Hi, it's sticky and they're going to stay quite yet.
The Destocking has seen motion I believe providing that would put us equal does on value accretion.
Now he can based ones.
I was just asking about <unk> 2021.
Operating 2210 megawatts on the P. P. A R E.
Which is 1% higher than.
We like operating you had before.
Our portfolio was stable at 6955 megawatts.
At the end of quarter.
Fun town increased to 7255 megawatt.
Subsequent to the quadrant without eating beans.
While these portfolio make all those numbers exclude rooftop portfolio, which is in the process of getting transfer to Adi.
Our financial numbers continued to consolidate rooftop.
Some process is completed.
On page 13.
Oscar that existing and monthly plus stock compensation expense.
It has been.
Five to $8 7 million or <unk>.
99% higher.
Against 25% increase in revenues.
For the same quarter in the.
The previous year.
So I need to G&A on PCP.
Are they increased by 6% in line with that expectation.
Got it.
All our recent refinancing both domestic as well as what what does he have any substantial savings in interest costs about it improving already completed that.
Almost 70% of our total funded debt at present.
Including on outstanding bonds.
It does take quite a period of at least two complete yes.
And how do you finance that project going on.
Uncomplete kind of new plug in is going to get.
We will endeavor to have all of them.
100% of target guests to be able to fix it.
Great.
Refinancing at lower cost.
Excuse me.
Strong credit profile of the group supported by strong sponsors such as pretty picky on all that.
But again, we expect that India may not see much impact from nobody's going to say at the end.
You no longer.
As you can get parking assist economically.
Events like sovereign debt infusion and the global global bond and they say, we expect India to significantly good from longtime even philosophically capital much larger than previous years.
We expect it to keep the rig.
Turning to stock compensation expense.
My second question is when do you think they do.
On a scale play decreased from $26 nine to <unk> 30 of June 2021.
Could you just try that again.
So I guess September 2021.
Let's see how the expensing policy years totaling $3 3 million.
Despite challenges in last two quarters I.
Our DSO has been fairly consistent.
116 days, one in Abilene anybody's didn't like it.
We believe there will be further improvement.
So David in future with companies need golf projects with high Creditworthy counterparty.
And also the expected improvement in collection due to favorable lodging.
Scott.
You had also pulled off a favorable judgment soon.
Yeah.
When are you going to basically.
You can see that we've done from a fixed.
Increased about continued pushing to get onto yet.
Could you talk about building a thing, but it was about 32%.
Mitch did fall off but I think in six months and about $1 2 billion and then you've got for the last 12 months was about 894 million.
I think it could be that issue.
Operating assets of six two times and on September 21.
Finally, looking at page 16.
Providing balance sheet information.
We had about one.
But he is one 3 million of CASM gassy cooling.
Net debt stood at approximately one.
One 1 billion.
As a reminder.
Is he has kicked off $17 2 million and.
We're ready now that I sink.
Balance sheet could be netted against our total debt.
This is very good.
The next thing we.
We put in place to make it a lot of green bonds.
During the current quarter.
You have to use part of this effect related to all the first green bond.
Deliveries on the Green bond financing.
Now I'd like to provide some commentary on the guidance.
Thanks Bhavan.
We have achieved significant results this quarter. Despite all the challenges we have been through in the theater in terms of physical disruption.
We are happy to report that we have been able to achieve higher revenue compared to our guidance for this quarter.
The replay number for the current fiscal and we'll keep the market posted and that coming about.
For the third quarter, but actually a 2022.
Expected revenue to be between INR, 4100, and INR 4000, $300 million and the pls to be between 19, 5% to 25%.
With this we will be happy to take questions.
Thank you very much.
I'll begin the question and answer session.
Anyone who wishes to ask a question May Press Star then one on their touch tone telephone.
If you wish to them when we get that from the question queue them up they're starting to.
Orders have been quite aggressive to use handsets well asking a question.
Ladies and gentlemen, we wait for a moment, while the question queue assemblies.
Participants you remember.
I started in one to ask a question.
The first question is from the line of Justin Clare.
Roth Capital Partners. Please go ahead.
Everyone. Thanks for taking my question.
So first off here with.
With the progress that's being made with Andhra Pradesh on signing a PSA is for two three gigawatts.
I believe you have about one gigawatt remaining on the entire four gigawatt manufacturing link tender.
In which you would want to sign up.
Tpa is if you consider both Andhra Pradesh, and that's 600 megawatts you already signed Ppas for so just what visibility do you have into the PSA is for that one gigawatt, that's remaining and when could ppas potentially besides.
Thank you for this question.
We have some visibility on.
400 megawatts of default trends.
There are two or three states, which got them T SEC.
He is in conversation with it too.
So we expect that the trying to completion of the remaining 400 megawatts can happen.
And the next quarter.
It's not as though.
The remaining about 600 odd megawatts.
Off the four plants, it's uncertain.
At the moment I would say he has I don't think started offering basketball team because that capacity has to be commission for two five years hence.
That will probably take a little bit more time, the poet's targets would be to close the 400 megawatts and then post that sick. He wouldnt try to close the remaining seven 660.
Seven megawatts.
Okay got it that's.
That's helpful. And then so just considering the progress that you've made or that has been made in terms of signing with PSA and the visibility into two ppas here can you just talk through that.
The timeline here in which these projects are expected to be commissioned I think that that's 600 megawatts. The commissioning date was our fiscal Q3 of 'twenty 'twenty four but just wondering is that your plan to commission that project basically right on schedule. There is there a potential too.
Commission that a little bit earlier than than that timeframe. So just maybe some some details on the timeline here.
Who are definitely you are absolutely right below the requirement. After the contract is to commission. These are the 600 megawatts in corporate P fiscal 'twenty, four which mean in November 2022, odd and Deborah would be to try and completed.
That's 600 megawatts before then.
Because of the fact that you won't be all we have made significant progress in banana connectivity. So we will be able to give better visibility on the actual commissioning date.
And perhaps in the next.
Just.
A big at the moment because the P. P. As had been signed recently, we are trying to figure it out.
They're all doing and all the the the land and the connectivity stuff and hopefully we can have some guidance around when we expect to commission soon enough.
The remaining 2300 megawatts then the commission 2000 megawatts, assuming that the Ppas get signed and this month. There will be then I think by the commission by me a pen plenty of handsome and let me hear him.
Okay got it.
And then since the the timeline here is becoming a little bit more clear in terms of the visibility you have on these projects.
How are you thinking about the capital needs for your project pipeline.
Sources of capital that you're considering here and then you know what could be the timing of when you you know.
May need to raise additional capital.
We are in a discussion about the grocery at Holdco could be peers have recently been signed yet.
We do have some timing, but offhand.
We will obviously want to do it earlier than later.
Do you mind just come typical that we have the money available for that.
All of you are working on that but we do have plenty of time on our hands at the moment.
Okay.
Great. Thanks for the questions I will pass it on.
Thank you very much.
Participants you May press Star then one to.
Lots of questions.
The next question is from the line of Mr. Puneet Gulati from HSBC. Please go ahead.
Yeah. Thank you so much so on the 600 megawatt PPA.
When are you likely to place orders for a few more deals in and what is the pricing that you are expecting.
[laughter] me too it'd be like.
Responding to that.
But we do need to commission DC project by November of 2020 feet, which means that if he into commissioning of the project then we do mean Stuart Florida build modules 67 months, Okay I.
Well I hate to back.
Alright talking about around March of 'twenty 'twenty Pete is than we do when we need to all of these are these models.
We are working on a schedule in there and we can try and commercial projects earlier, so obviously, though they know what the current cedar pricing module is highest.
We just have to balance the ordering of modules and publishing them a beautiful project.
One the bit readiness readiness is in good shape I would think I'm, taking this on the cost of four on the cost of modules.
So that was very odd and that's why it won't.
B do need a little or a few months before they before making.
Making the decision as to when we win commission these projects because it didn't depend upon the tragic module pricing as much as it couldn't do on our readiness.
But again I presume you would need to do a financial closure before the ordering as well.
Well as far as the 19th goes it is concerned.
We do have time for can actually Georgia, and these plastic food Oh can actually close them and ordering.
So it can be sort of in parallel.
You cannot open L PS.
With all the Credentialing skills, they don't give me, but the discussion.
You can supply it.
Going to happen as we go out and get off the maximum choice for them.
Hmm.
My next question was on the Punjab issue, which is the reason so are they paying it all ends up now I'd have to stop paying.
Yes.
Hello, Glenn golf as sort of being absolutely on time in fact, there was no. David if you recall there were some pending payments and find out for a dispute that they had created.
At the onset.
The pandemic at the beginning of 2020.
It would be as an industry that.
Award smoking cigarettes, and Mcdonald's from what I understand part of that money and.
And they are paying us on schedule there is no delay from Punjab.
It feels like.
Okay. So so despite posting a two step thing.
Like Andhra Pradesh.
Is that correct.
Absolutely that is the right understanding being though it has been at the moment. It is not the low at the moment.
You don't want it to become law. If it becomes law, then there'll be a process of the domination of batteries and different than the other but that is something.
Something that the industry.
We strongly.
Louis.
I.
I believe that they just didn't come.
Some are available.
Understood and.
Lastly on the progress on the timeline for the sale of rooftop business. Then when are you likely to receive.
Cash from that.
Yeah.
But when we will have to take that shut in it so.
Hi, Bonnie.
Let me talk about the same.
The other thing trade looks like it's sexy, but they have been.
And that doesn't suck up the works for quite a problem, maybe just I'll take it.
We have received a significant majority of those have to work on the a few of spending so hopefully hopefully next couple of months.
It would have you can have honest it wasn't everything in place.
And we should be able to conclude a transaction.
During the fiscal year.
Okay. So and you would expect to receive the funds also during the fiscal year.
Yeah, we expect to receive a phone call for the.
For the fiscal year, but also looking at kind of trying to see if you can put into a in the two previous because I think a large part of that will come to see so there is a possibility that you can oh.
But one of my colleagues have anything it is it is it is in place we possibly can can kind of triangulate that picked up traditionally and then probably maybe you'd like to take a couple of times, but they couldn't do you expect when you see like that produced within this fiscal year.
Excellent that's good to hear thank you so much and all the best.
Thanks Liam.
Thank you.
The symptoms.
And one to answer question.
Ladies and gentlemen.
You May press Star then one.
To answer the question.
The next question is from the line of some.
Please go ahead.
Okay.
Hey.
Good evening to everyone and thanks for taking the questions here.
One thing if you're going to struggle with carbon credits as a result of strong beat in the quarter because of that.
Could you just.
To elaborate on that how much.
Carbon kind of revenues do you expect going forward or is that like a way to understand these revenues in the near future and and just had a separate question on the guidance after that.
Thanks for the question.
It is a it is a difficult it is a difficult thing to predict what is the revenue that's what I'm getting at.
Gain from problem credits as you know the market has been fairly depressed over the last several years and do it.
It would be has been just dream of.
You know are very project under the various mechanisms everyone who's never been shored up to what could be the revenue that one could get from getting reading those certificates.
So because of Oh article fixed side got it.
So there has been some change in the state that's a big deal.
And I too.
The pundits are still figuring out how exactly when that impact through the initial understanding is that this does not have any back from carbon pricing as far as Indian project second son, but.
The Devil is in the detail that you would do so given that the world is moving towards extracting a larger a carbon price.
Hum from our industry and from other participants.
One would expect that carbon pricing when stay at home, but it is difficult to predict what exactly the right thing to do.
Got it and then just in terms of guidance yet.
Did you have any guidance was flattish.
Should we see some upside just given you have these 515 in Q2, and then 6.3 in Q3 should even see some upside.
Upside to the revenue guidance based on that.
In the quarter too.
For the full year for the full year.
$6 three of cash.
Cash received in Q3 as well right.
Alright, so let's get started.
Yeah, sorry go ahead.
And then just a clarification needs. So the revenue that we booked in basketball.
That must be received in this quarter. So so so I just wanted to clarify that it doesn't seem like that and it'll be the last quarter that we sold in the last quarter that didn't really like in this question and then the subsequent to that.
Yes.
Okay.
Yeah Yeah.
Yeah.
Hum, but Livingston Lake.
Roughly 6 million of higher revenues right. So I just wanted to incentive you could see any upside to the revenue guidance yeah.
And it depends on the location will depend on it.
Yeah, it would be difficult to predict at the moment.
Right.
Got it.
And then just on the.
A bunch of no matter here.
Just trying to understand like the total exposure for you guys isn't like it seems that just the Punjab funding two projects, which are exposed to that.
And the change in potential change in law in the state right.
And my calculation is roughly around $6 million of EBITDA impact.
Got it.
Statements like just trying to understand how.
It would be a sensitivity here.
But he felt very very strongly of the opinion that there will be no impact of the move that burned out state is making.
There is absolutely no question that what they are trying is against the contract Act again.
Again, the you know the Indian Constitution, and so therefore.
The for them to find out in the field is is driven by local issues.
Elections coming up in Punjab in the next weeks and months.
That is perhaps.
Some people because they're basically it's unfortunate.
Bill has been Boston the state and we are we have taken legal opinion, you have spoken to the Centene Ministry.
If you're going to super supportive.
And there is no there is no doubt in our mind that even if by any chance, let's suppose we believe that this will not become the logic I went back and and the legal advice behind it but even if there is any chance of this really becoming an act it when notwithstanding who can't.
In court so.
Yeah.
You don't do any very optimistic that this is a temporary phenomenon and nothing really nothing really happened and nothing has really come out of this.
Alright, thats helpful as well and then depart from that I think like in the past we've talked about potential Oh.
Discussions of the Supreme Court level on some of the other stage discussions.
Any expectations on the timeline of when we could finally here on these oh state challenges to renegotiating contracts.
So apart from Andhra Pradesh, which is in the final leg. So to say by end of December we had hope for the next round of hearing and which is expected to be defined inbound appearing as on 2019 until December on the on the produce wrapped up at the moment there is no.
And at this time.
Unfortunately, its been going on for the last couple of years. There is no. Other states that have tried to do in England contracts. Apart from this recent half after that then depends out so I'm not aware of any of them any other outstanding cases that the government has any of the states Goldman Who's gone against a basket of the agreement.
Got it alright.
Alright, and then just last one from me.
And then follow up later on.
Surround the.
The project construction over has like scheduled.
We have to call it roughly three gigawatt.
Which you have outlined will be completed in the next few quarters here, but beyond that is the.
End of 2020 three the first next transact.
<unk> is expected from the first tranche or do you expect any of these hybrid projects of wind projects to start construction before that so I'm just trying to understand the timelines and.
How to think about.
On the potential financing requirements or our equipment procurements for the other projects.
So let me take that.
So yeah. So as you know this question was alluded to even before.
We are.
Going to see if he can start constructing.
And the commission some capacity before the scheduled commissioning both November and December of 2022. So you can see how much capacity you can pick up a head exact details will be known and becoming so you also have.
Some more capacity coming up on the <unk> projects that were mentioned so part of that answer might come up.
So these are this is work in progress so we can work with.
Speak specifically about dates, but it's that is a reasonable possibility that we would think some capacity before those get your unconventional.
Got it Oh no. This is really helpful.
Thanks for taking the questions.
Thank you.
Participants you May proceed.
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Ladies and gentlemen.
If I start in one.
Lots of question.
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I wish to ask a question maybe I start in one.
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Thank you very much thank you everyone.
Yeah.
Yes.