Q1 2023 Renew Energy Global PLC Earnings Call
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Thank you for standing by and welcome to the renewable energy first quarter 2023 earnings call. All participants will be in listen only mode there'll be a presentation followed by a question and answer session. If you wish to ask a question you will you will need to press the star key followed by the number one on your telephone keypad.
Speaker 1: Thank you for standing by and welcome to the Renew Energy first quarter 2023.
Speaker 1: All participants will be in listen-only mode. There will be a presentation followed by a question and answer.
Speaker 1: I wish to ask you a question. You will need to press the start key followed by the number 1 on your telephone key.
I would now like to hand, the conference over to Mr. Nathan Judge T. B C. Please go ahead.
Speaker 1: I'd now like to hand the conference over to Mr. Nathan Judge, TBC. Please go ahead.
Yeah. Thank you very much Jason.
Speaker 2: Yeah, thank you very much, Jason. And I'm not TBC and head of investor relations, but thank you very much. And good morning, everyone. And thank you for joining us. Uh, last night, the company issued a press release announcing our results for the first fiscal quarter of 2023 ended June 30, 2022.
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Master leases.
Hey, Mike Good morning, everyone and thank you for joining us.
Last night the company issued a press release announcing our results for the first fiscal quarter of 'twenty three.
At June 32022.
A copy of the press release and the presentation are available on the Investor Relations section of the news web site at Www Dot the new tower.
Speaker 2: A copy of the first release and the presentation are available on the investor relations section of RENEW's website at www.renewpower.com.
Okay.
With me today are amongst anyhow, our founder chairman and CEO .
Speaker 2: With me today are Simant Sinha, our founder, chairman, and CEO . Kedar Apadje, our CFO . And Vishali Nigam Sinha, our chief sustainability.
Our pace our CFO .
Charlie.
Uh Huh, our chief sustainability officer.
Okay.
Mark will start the call by going through an overview of the company and recent key highlights and then Dara will go through the results followed by an update on ESG from Vishal.
Speaker 2: Samat will start the call by going through an overview of the company and recent key highlights and then Kedar will go through the results followed by an update on ESG from Michelle.
We will then wrap up the call the symbolic reiterating our guidance for fiscal year 2023.
Speaker 2: We will then wrap up the call with Samant reiterating our guidance for fiscal year 2023.
After this we will open up the call for questions.
Please note.
Our safe Harbor statements are contained within our press release presentation materials and available on our website.
Speaker 2: Our safe harbor statements are contained within our press release, presentation materials, and available on our website.
These statements are important and.
Speaker 2: These statements are important and integral to all our rem-
Integral to all our remarks, there are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward looking statements.
Speaker 2: There are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking...
So we encourage you to review the press release, we furnished in our form 6K.
Speaker 2: So we encourage you to review the press release we furnished in our Form 6K and presentation on our website for a more complete description.
<unk> on our website for a more complete description.
Also contained in our press release presentation materials and annual report are certain bond I FRS measures that we reconciled to the most comparable I felt I F. R. S measures and these reconciliations are also available on our website and the press release presentation materials and annual report.
Speaker 2: Also contained in our press release, presentation materials and annual report are certain non-IFRS measures that we reconcile to the most comparable IFRS measures, and these reconciliations are also available on our website in the press release, presentation materials and annual report.
It is now my pleasure to hand, it over to Mark.
Yeah. Thank you Nathan and good morning to everybody on the call.
Speaker 3: Thank you Nathan and good morning to everybody on the call.
Let me dive right into the presentation.
Speaker 3: Let me dive right into the presentation. Starting on page 5, we are pleased to deliver a strong set of results above our internal budget for the first fiscal quarter of 2023.
Starting on page five we are pleased to deliver a strong set of results.
I bought and done budget for the first fiscal quarter of 'twenty three.
And we are on track to meet our if I could get to the guidance. So far this year.
Speaker 3: and we are on track to meet our FY23 guidance so far this year.
Revenues and adjusted EBITDA were up about 50% year on year.
Speaker 3: Revenues and adjusted EBITDA were up about 50% year on year, and our cash flow to equity, or the equivalent to distributable cash flow, more than doubled versus the same quarter last year.
And our cash flow to equity or the equivalent to distributable cash flow more than doubled versus the same quarter last year.
And portfolio grew to 13.2, gigawatts or 33% up from the prior year and importantly.
Speaker 3: Our portfolio grew to 13.2 gigawatts, or 33% up from the prior year. And importantly, nearly 95% of the portfolio has PPA now, providing, therefore, greater confidence in our growth.
Nearly 95% of the portfolio have P. P is now providing them with greater confidence in our growth.
Nearly all of our forecast a fifth.
Speaker 3: Nearly all of our forecasts of fiscal year 23 adjusted even though should come from operating assets currently operating giving us confidence that we are on track.
Can be at 23, adjusted EBITDA should come from the operating assets currently operating giving us confidence that'd be it on track.
Overall, the growth environment remains bullish.
Speaker 3: Overall, the growth environment remains bullish as renewables are the lowest cost options for new power capacity in India and we believe that this is really sustainable.
When you look at the lowest cost options for new bulk capacity in India, and we believe that this is really sustainable.
Increasingly our customers are seeking complex public solution that can be delivered consistently over the full days and we have built this expertise by offering a full suite of renewable product.
Speaker 3: Increasingly, our customers are seeking complex power solutions that can be delivered consistently over the full day and we have built this expertise by offering a full suite of renewable products overlaid with digitalization and a proprietary AI technology.
Overlaid with digitalization and the proprietary technology.
We believe that this is a truly differentiated offering in the renewable sector.
Speaker 3: to believe that this is a truly differentiated offering in the renewable sector.
Given the need for electricity to be deliberate round. The clock, we have seen increased interest in all these debbie didn't energy submission.
Speaker 3: Given the need for electricity to be delivered round the clock, we have seen increased interest in our intelligent energy...
We expect in the near future about 10 to 12 Gigawatts of RPT auctions were locked up over the next several months.
Speaker 3: We expect in the near future, about 10-12 MW of RTC auctions will occur over the next several months.
And that is what 100 gigawatt opportunity by 'twenty, Turkey.
Speaker 3: and there is over a 100 GW opportunity by 2030.
Importantly, please keep in mind that one can make a walk of IPC Paula actually requires up to three megawatts of renewable energy policy.
Speaker 3: Importantly, please keep in mind that 1 MW of RTC power actually requires up to 3 MW of renewable energy.
The high ever done Carpathia opportunity is really gaining momentum.
Speaker 3: The higher return corporate PPA opportunity is really gaining momentum.
And we are seeing a very significant acceleration of interest from corporate now given the economic advantage of a lower price than alternatives.
Speaker 3: and we are seeing a very significant acceleration of interest from corporates now, given the economic advantage of a lower price than alternative.
I believe he's focused on sourcing entities from Green sources, who watch carpet in their own net zero agenda.
Speaker 3: and an increased focus on sourcing energy from green sources towards corporates in their own net zero journey.
Today's corporate Ppas. It represents about 10% of our portfolio. Our total portfolio of 13, one three gigawatt I'll come about 4% a year ago.
Speaker 3: Today, corporate PPS represent about 10% of our portfolio, of our total portfolio of 13.3 GW, up from about 4% a year ago.
And this area has represented about 30% of all portfolio additions during the last 12 months.
Speaker 3: and this area has represented about 30% of all portfolio additions during the last 12 months.
We believe that this growth will continue and potentially could even accelerate over the near term.
Speaker 3: We believe that this growth will continue and potentially could even accelerate over the years.
I didn't get a chance to energy solution has significant potential beyond just the traditional utility customer base.
Speaker 3: Our intelligent energy solution has significant potential beyond just the traditional utility customer base and we are seeing tremendous interest in both the corporate market and also globally now in the green hydrogen space.
We have seen tremendous interest in both the corporate market and also globally now in the green hydrogen space.
Talking about the global Green hydrogen opportunity. This is a multi billion dollar opportunity, but it is still very early in the development process.
Speaker 3: Talking about the global green hydrogen opportunities, this is a multi-billion dollar opportunity, but it is still very early in the development process. And any contracts and material capital commitments are likely still some time away.
Any contracting, but Peter capital commitment unlikely still sometime away.
We will only proceed with making investment if the opportunity is a very stringent set of the climate.
Speaker 3: We will only proceed with making investments if the opportunity clears a very stringent set of requirements including returns over our cost of capital and payment security.
The terms of what our cost of capital and payment security.
As far as green hydrogen is concerned.
Speaker 3: As far as green hydrogen is concerned, we don't see meaningful capital on investment into this area in the near term.
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Until this area in the near term.
Turning to page six we have a very strong cash position of approximately.
Speaker 3: Turning to page 6, we have a very strong cash position of approximately $850 million and expect that after the CapEx for completing our portfolio of 13.2 GW has been spent, we will still end up with a higher cash balance than today.
$850 million unexpected after the Capex for completing our portfolio of $13. Two gigawatts has been spent.
We will still end up with the highest cash balance in today.
We have no pizza issuing new shares and our current plan.
Speaker 3: We have no intention of issuing new shares in our current plan and capital recycling provides additional resilience in our balance sheet.
And capital recycling provides additional discipline in our balance sheet.
In just the past 18 months, we have leased about $450 million of equity from capital recycling.
Speaker 3: In just the past 18 months, we have raised about 450 million dollars of equity from capital recycling. And interest in our assets is even smaller.
I'm interested not assets is even stronger today if anything.
The lending environment for that renewable energy projects remains robust and we continue to see rates hold at historically attractive levels domestically.
Speaker 3: The lending environment for our renewable energy projects remains robust and we continue to see rates hold at historically attractive levels.
We just put in place a 1 billion dollar facility.
Speaker 3: We just put in place a $1 billion facility for our round-the-clock power project, which compares favorably to the current interest rate of debt in our balance sheet.
I'm the clock power project, which compares favorably to the current interest rate of debt on our balance sheet.
We also refinanced about $600 million in the latest quarter did you see her annual interest expense on the debt by about $12 million.
Speaker 3: We also re-finance about 600 million dollars in the latest quarter, reducing our annual interest expense on the debt by about 12 million dollars.
And extended the maturity by approximately two years is that.
Speaker 3: and extended the maturity by approximately three years as well.
We have already funded about 80% of debt maturing in the next two years and the remaining $140 million should you see a man and he's also amply covered by it doesn't really cool.
Speaker 3: We have already pre-funded about 80% of debt, maturing in the next two years, and the remaining $140 million should easily be refinance and is also amply covered by internal accruals, as well as the $850 million of cash in our balance sheet currency, even if the refinancing market unexpectedly unexpectedly closes, which we certainly do not expect it to at this point in time.
As well as the $850 million of cash in our balance sheet currency, even if the refinancing market unexpected unexpected because it makes it certainly unexpected like this one and done.
As we've highlighted many times over the past year, we have been focused on improving collections on the possibilities.
Speaker 3: As we've highlighted many times over the past year, we have been focused on improving connections on the past new receivables from the state distribution companies and we are pleased to announce that we have made progress in this regard and have reached an agreement on payment schedules from several states in the past couple of months.
So I'm just a distribution company and we are pleased to announce that we have need from based on just the yard and have recent agreement on payment schedule from several states in the past couple of months Okay.
The AP this column, which as you would know that prevents almost 42% of our current fossil fuels.
Speaker 3: The AP DISCOMM, which as you would know represents almost 42% of our current parts and receivables.
Now at least to Dewater Fox deal until June 22 over the next 12 months.
Speaker 3: has now agreed to pay what has passed due until June 22 over the next 12 months in equal monthly installments. I am pleased to say that they have already paid the first installment of that.
Equal monthly installments.
And I'm pleased to say that they've already paid the first installment of that.
This is a significant positive development.
But you also get the feedback favorable order from the regulator is telling that the central government has also ramped up that I sit on the pitch to a series of measures to accept because parents of outstanding reviews.
Speaker 3: We have also just received a favorable order from the regulator in Telangana. The central government has also ramped up pressure on the states through a series of measures to ensure quicker clearance of outstanding views.
So for all these reasons, we do expect an improvement in our Dsos by you.
Speaker 3: So for all these reasons, we do expect an improvement in our ESOs by year.
Getting back to corporate the corporate PPA market on page seven as I mentioned earlier.
Speaker 3: Turning back to the corporate PPA market on page 7, as I mentioned earlier, this market continues to gather momentum and we want to spend some time on this given how important this segment has become to our growth and to our ability to consistently deliver returns above our cost of capital and above our peers.
This market continues to gather momentum and we wanted to spend some time on just given how important the segment as they come to our school and two our ability to consistently deliver returns above our cost of capital and above up yes.
We view the Carpathia addressable market is around 25 gigawatts today, although the total consumption of like corporate itself has about 100 gigawatt.
Speaker 3: We view the corporate PPA addressable market as around 25 GW today, although the total consumption of buy corporates in India is over 100 gb.
And then you got a corporate customer stay about.
Speaker 3: In India corporate customers pay about between 6 to 10 rupees per kilowatt hour to buy power from the grid which is significantly higher than what is paid by residential customers.
Six to 10 rupees per kilowatt hour to buy power from the grid, which is significantly higher than what that is what is paid by residential customers.
Bryce to bypass the policy. There is also around the same level.
Speaker 3: The price to buy power from the power exchanges is also around the same level.
Revenue was able to provide public who would be same customer added I'm seeing the harsco Pete Buchler Wattup, Richard as you would imagine is significantly better for the corporate and other arguments.
Speaker 3: When you are able to provide power to the same customers at around 3.5 rupees per kilowatt hour which is as you would imagine a significantly better for the corporate than other also.
On top of this very strong economic initiatives. There is an increased focus by corporates globally.
Speaker 3: On top of this very strong economic initiative, there is an increased focus by corporates globally to source their energy from sustainable sources and move towards net zero carbon emissions goals.
So I said energy some sustainable sources and move towards zero carbon emissions goals.
Many large companies are able to source low cost carbon credits from India to offset that and then emission.
Speaker 3: As many large companies are able to source low-cost carbon credits from India to offset their emissions, we have seen a significant amount of interest for our India renewable energy projects from non-India based companies as well.
A significant amount of interest or I didn't think so.
Yeah based companies is that.
Regulation is also changing.
Speaker 3: Regulation is also changing to reduce surcharges and penalties on purchasing power from renewable energy projects rather than from this.
The reduced surcharges and penalties.
But they didn't follow from renewable energy targets from the song one item that we are paying particular attention to is the transmission cost me welcome renewable energy to corporate and other this is ratified by the central recognition.
Speaker 3: One item that we are paying particular attention to is the transmission cost waiver from renewable energy to corporates. And if this is ratified by the central regulator, it would make the delivered cost of renewable energy even more attractive.
It makes the delivered cost of renewable energy even more attractive.
At the end of the quarter as seen on page eight the business segments represented about 10% of our portfolio are some 4% of our portfolio.
Speaker 3: At the end of the quarter, as seen on page 8, the business segment represented about 10% of our portfolio, up from 4% of our portfolio a year ago. We see the potential for corporate TTS to eventually get to 25% of all portfolio growth for the next several years.
We see the potential for corporate Ppas to eventually get to 25% of all portfolio go up for the next several years.
Our optimism also staying somewhat competitive advantage in this sector. When you have contingent considerable market share leadership in this segment as we are able to provide value added customized solutions to our technological advantages as seen on page nine.
Speaker 3: Our optimism also stems from our comparative advantages in this sector. VENUE has considerable market share leadership in this segment as we are able to provide value-added customized solutions to our technological advantages as seen on page 9.
On top of this the need for companies to partner with renewable energy developers such as a new lease at corporate governance is a significant focus.
Speaker 3: On top of this, the need for companies to partner with renewable energy developers such as Renewal means that corporate governance is a significant focus by the highest quality corporate customers.
By the highest quality corporate customers on target audience.
All of our largest competitors in the corporate PPA market are private companies.
Speaker 3: All of our largest comparators in the corporate PPA market are private companies.
Another critical differentiator that then you'll have the ability to pre build projects to accelerate the selling cycle historically got corporate customers don't like to wait too long to stop receiving electricity, which is about the new scores over its competitors and being able to provide customized solutions far more quickly given our scale rebuilding corporate projects presents only anomaly.
Speaker 3: Another critical differentiator that Renu has is the ability to pre-build projects to accelerate the selling cycle. Historically, corporate customers don't like to wait too long to start receiving electricity, which is where Renu scores over its competitors in being able to provide customized solutions far more quickly.
Speaker 3: Given our scale, pre-building corporate projects presents only a nominal amount of our total portfolio, where it is actually much higher for a number of our competitors in this market.
The amount of our total portfolio that is it could be much higher.
One of our competitors in this market.
Corporate Ppas, all time high return projects.
Speaker 3: Corporate PPS also have higher returns than vanilla projects that most of our competitors focus on. And as we all know, corporate customers also have a history of paying the bills on time. And so our DSOs from this segment are actually fairly low, less than 1% of our total accounts receivables, even though they represent about 8% of our total operating capacity.
Most of our competitors focus on and as we all know corporate customers also have a history of paying their bills on time and so our dsos from this segment are actually fairly low.
One 1% of our go to a concert team, but even though they represent about 8% of our total operating capacity.
As the corporate PPA market grows organically that's complex grow organically, we will grow along with them. All so you have higher long term organic growth.
Speaker 3: As the corporate PPA market grows organically or as corporates grow organically, we will grow along with them, offering us higher long-term organic growth.
In addition to that.
We believe that there are additional opportunities to enhance growth by cross selling and offering customized products to our customers.
Speaker 3: We believe that there are additional opportunities to enhance growth by cross-selling and offering customized products to our customers.
The extent also shows that we have a strong liquidity position.
I saw that after all capex and debt maturity update over the next several years, we should end up with even more cash on our balance sheet can be half the country.
Speaker 3: The chart on the right shows that after all Catholics and best naturities are paid over the next several years, we should end up with even more cash on our balance sheet than we have currently. That's this without getting you shady.
This without pushing getting yourself.
We believe that there's limited risk to our Capex budget at this point and we have considered cutting prices in providing that guidance.
Speaker 3: We believe there is limited risk to our CAPEX budget at this point and we have considered current crisis and providing a CAPEX crisis.
Even if commodity prices were to rise even by up to 10% from Cleveland, our Capex would knocking them all into the 4%.
Speaker 3: Even if model classes were to rise even by up to 10% from today's levels, our Catholics would not change their modern-day default.
Most of our lease up I've got to get all these locked in and so therefore, there is no material exposure numbers from it as.
Speaker 3: Most of our green turbine cars are already locked in and so therefore there is no material exposure on this front. As far as individual projects are concerned for the future we continue to target 16-20% equity IRRs and we will continue to remain disciplined with your capital.
As far as individuals are concerned for the future. We continue to talk with the senior plenty for thin equity, Idaho, and we were continue to remain disciplined with your capital.
We also have a high level of visibility for our debt funding.
About 50% of all our debt needs for the next couple of years has already been either sanctioned at a hoop.
Speaker 3: About 50% of all our debt needs for the next couple of years has already been either sanctioned or approved. We are seeing strong indications of interest for the projects that we haven't yet raised debt for. Our interest rate risk is also limited with fixed rates on 74% of our debt and a 100 basis points increase only impacts our FY20C cash flow to equity by around 2%.
<unk> seen strong indications of interest for the projects that we haven't yet seen that Paul how do you think there's risk is also limited the fixed based on 74% of our debt and 100 basis points would be the only impact to.
Free cash flow to equity by around 2%.
On top of all this is the opportunity to utilize capital in fact, they do it.
Speaker 3: On top of all this is the opportunity to utilise capital resizing to enhance the resilience of our balance.
But as it looks at our balance sheet and ample liquidity mix data in fact that they did that.
Speaker 3: and ensure ample liquidity, which brings us to page 11. We have a strong track record of having raised capital for capital recycling. We raised almost a half a billion dollars in the last 18 months by selling minority states or in some cases entire problems.
We have a strong track record of having this capital for capital recycling.
It's a half a billion dollars in the last week and month by selling minority Stakes.
The entire problem.
Going forward, the consumer feel loved and personal asset that between nine to 10 times.
Speaker 3: Going forward, we continue to see a lot of interest in our assets at between 9 to 10 times EV to run rate EBITDA. And given the fact that we are also trading at about 7.6 times run rate EBITDA for our 13.2 gigahertz portfolio, this prevents a significant arbitrage opportunity given also that we have $150 million of authorization left on our share drive.
You need to run rate EBITDA.
And given the fact that we had also said he had about seven six times.
EBITDA for that could be could they go into portfolio. This presents a significant arbitrage opportunities are.
Given also that we had $150 million of authorization left on I'll say about that.
Turning to page 12.
Speaker 3: During to page 12, DSOs were about 232 days at the end of fiscal quarter 2023, which was about 30 day improvement from the same quarter in the prior year.
What about 232 days at the end of fiscal quarter 2023.
There's about 30 days from the same quarter in the prior year.
Our dsos are seasonal and so there is an uptick in quarter, one and quarter two but we do expect that by the end of the fiscal year, our dsos will be significantly more than that right now.
Speaker 3: RDSOs are seasonal and so there is an uptake in quarter one and quarter two, but we do expect that by the end of the fiscal year, RDSOs will be significantly lower than where they are right now.
In addition to that.
We are also now as I said earlier, moving more and more to seiki and to our corporate P. P. S. In fact, all of our 13.2 gigawatt. The total asset base and the total amount from this comes would only be about 34% and that just says that shifted from 53% or 34% of this column and not all the portfolio itself.
Speaker 3: We are also now, as I said earlier, moving more and more to Secchi and to corporate PPAs. In fact, of our 13.2 GW total asset base, the total amount from Viscoms will only be about 34%. And that itself, that shift from 53% to 34% of Viscoms in our total portfolio itself could reduce our mutual improvement in our DSOs by 55 days from there to the other.
You saw an improvement in our Dsos by a 55 days from the idea that now.
Let me turn it over to <unk>, but before that let me also just point out that.
Speaker 3: Let me turn it over to Kedar, but before that let me also just point out that most of our leadership team has been here from the beginning of the Indian Redevelopment sector and we have lived through many ups and downs. We have a lot of operational expertise and capability and this does provide a significant comparatively valor.
Most of our leadership team has been here from the beginning all stayed in renewable sector and we have lived through many ups and downs.
We have a lot of operational expertise and capability and this does provide us significant competitive advantages.
We believe that building a platform such as a new country is replicated in an emerging market you need strong operational experience to have a sustainable business in India and renewables.
Speaker 3: We believe that building a platform such as Renew can't be easily replicated in an emerging market. We need strong operational experience to have a sustainable business in Indian renewables.
But just like we've done it a little bit off because that over to you.
Thank you so much.
Speaker 3: Thank you, Saman. Looking at page 14, which provides the highlights of the first fiscal quarter of 2023, we added about 57 MW this quarter to bring the total to 7.6 GW operating.
Looking at page 14, which provides the highlights of the first fiscal quarter of 2020, we added about two pizza wouldn't make I'll ask it this quarter.
Bringing the total to two important things if you go back to operating.
The fight when do you make a bad acquisition is in advanced stage of closing and adding this would bring us to a one one gigawatts I'll break it.
Speaker 3: The 528 MW acquisition is in advanced stage of closing and adding this would bring us to 8.1 GW.
We signed about three parts you would maybe that backs up you'd be since our last earnings call.
Speaker 3: We signed about 341 MW of PPA since our last learning call.
Our fourth quarter revenue was which we call as booking com in dry Paris.
Speaker 3: Our first quarter, apart from the revenues, which we call as total income under IFRS,
But most of the people and year on year.
Speaker 3: rose 50% year on year. Our adjusted EBITDA also increased at a similar rate and cash to equity more than doubled from last year.
And I guess really but it also increases our accumulative, great and passionate people who need more than doubled from last year.
Turning to page 15, which provides a reconciliation of adjusted EBITDA.
Speaker 3: turning to page 15 which provides a reconciliation of adjusted EBITDA.
It was all about water until expectations.
And you don't make puts us on track to meet our full year guidance at this point of time.
Speaker 3: And it puts us on track to meet our full year guidance at this point.
Turning to slide 16, which highlights our financing and refinancing initiatives.
Speaker 3: Turning to slide 16, which highlights our financing and refinancing initiative.
In fourth quarter, we refinanced about 600 million of high cost debt at an interest rate, which was eight 2% at about 200 basis points lower than the previous interest rate on that debt any thoughts as to what will billion dollars annually off gotcha.
Speaker 3: In first quarter, we refinance about 600 million of high-cost debt at an interest rate which was 8.2%, or about 200 basis points lower than the previous interest rate on that debt. And it offers us about 12 million dollars annually of cash.
Regarding interest expense this quarter.
Speaker 3: Regarding interest expense this quarter, there are several one-time items that hit this quarter which is related to these refinances.
There are no real one time items that hit this quarter, which was related to the refinancing.
We expect that going forward.
Interest expense for the current loan book will be out on 12 billion rupees in.
Speaker 3: the interest expense for the current loan book will be around 12 billion rupees in 2Q onward.
Duke you on works.
We have about $900 million of debt maturing in the next two years all pushed more than 80% has already been pre funded.
Speaker 3: We have about $900 million of debt maturing in the next two years, of which more than 80% has already been pre-funded. We expect the market will be open to allow us to refinance the remaining portion, but if that isn't an option for cash flow generation, the approximate $850 million of cash we have on our balance sheet should more than cover this requirement.
We expect the market will be open to allow us to refinance the remaining portion.
Got it back and they're not optional cash flow generation.
Therefore, if somebody had put them enough cash we have on our balance sheet should more than cover this equipment.
It is worth noting that even especially now under control and well below levels seen in the U S.
Speaker 3: It is worth noting that in pressure India is under control and well below levels seen in the US.
Long term interest rates and got more complicated than water generally seen globally.
Speaker 3: Long term interest rates in India are more competitive than what is generally seen globally.
We have meaningfully.
Speaker 3: We have meaningful additional borrowings, dry powder available, and we believe we can fund all our growth in our current plants domestically itself.
We have meaningful additional borrowing a dry bulk are available and we believe we can fund all of our goals and our current plan, but must be et cetera.
Renova made basically EBITDAR issues are built on a historical 12 month basis the ratios are constructed.
Speaker 3: When our net debt to EBITDA ratios are viewed on a historical 12 month basis, the ratios are distorted as the project date is added during construction phase but the EBITDA isn't generated for another 18 months or so. We believe that investors should look at our debt levels on a normalized run rate basis and for 13.2 GW our leverage would be around 5.1X net debt to run rate.
The project during construction phase for Labor day, you didn't generate part of another 18 months or so.
Believe that investors should look at our daily lives on a normalized run rate basis.
13.2, gigawatts or leverage would be our own pipeline and want it.
Net debt to run rate EBITDA.
With that I'll turn it over to actually go up there that we went on our usually initiatives. Thank you.
Speaker 3: With that, I will turn it over to Aishwarya to update everyone on our EHE initiatives.
Oh, thanks, Thanks, Kate I, if he could go to slide 18 during.
Speaker 4: Thanks Kedaj. If we could go to slide 18. During the first quarter of this financial year, we have continued with the momentum and rigor around our ESG and sustainability initiatives.
During the first quarter of this financial year, we have continued with the momentum and vigor around at ESG and sustainability in Michigan.
From a governance standpoint, we have formalized studios policies on human rights.
Speaker 4: From a governance standpoint, we have formalized two new policies on human rights for our operations and the Sustainability Code of Conduct for our suppliers.
Our operations and the sustainability code of conduct for our suppliers.
What these policies are available on our website.
The supplier code of conduct is now being rolled out with the view of Diva Derisking, our supply chain and also to support us in our decarbonization journey.
Speaker 4: The supply code of conduct is now being rolled out with the view of de-risking our supply chain and also to support us in our decarbonisation journey.
We are working with the business teams to roll it out to render interaction.
Speaker 4: We are working with the business teams to roll it out through vendor interactions and making it a part of the contracts we sign going forward.
Making it a part of the contracts we sign going forward.
Tom did you often taking sustainability food did it not obligations, we have scaled up our efforts around water management and implemented robotic cleaning fud out for solar units, which has resulted in a net savings of 216 533, sorry 200.
Speaker 4: From the view of creating sustainability further in our operations, we have scaled up our efforts around water management and implemented robotic cleaning further. For solar units, which has resulted in a net saving of 216,533 kilo liters for this financial year.
How's than 16 532 leaders for this financial year.
We have also improved sustainability disclose that significantly I have disclosed a scope three greenhouse gas emissions for the first time across all applicable choppy.
Speaker 4: We have also improved sustainability disclosure significantly and have disclosed our scope 3 greenhouse gas emissions for the first time across all applicable categories.
We have also continued our engagement on climate action globally and be where the only Indian representative and the steering committee of the recently had its Sydney energy for them, which is organized by the Australian government.
Speaker 4: We have also continued our engagement on climate action globally, and we were the only Indian representative at the steering committee of the recently held Sydney Energy Forum, which was organised by the Australian government, led by the Prime Minister of Australia.
Led by the Prime Minister tariff Australia.
When you have always been a responsible citizen.
Speaker 4: Renew has always been a responsible citizen and what we believe is that the ultimate purpose of any organization is to create shared value and positive impact to the society.
<unk> done a what we believe is that the ultimate purpose of any organization is to create shared value and positive and back to the society.
So recognizing this as a we have presented in slide 19 that climate change has a disproportionate impact on women's and youth and our social programs are designed to address these issues.
Speaker 4: Recognizing this, as we have presented in slide 19, that climate change has a disproportionate impact on women and youth, and our social programs are designed to address these issues.
And they'll do you have the two segments are to address these issues. So one in the and all of this by looking at each of the climate lens. So let me talk about it feel part of efforts, which we have undertaken recently one is an unlikely lights program I can license the program maybe electrified.
Speaker 4: And we have two segments to address these issues. One is, and all of this by looking at it from the climate lens.
Speaker 4: So let me talk about a few of our efforts which we have undertaken recently. One is in our Lighting Lives program. Lighting Lives is a program where we electrify schools with less than three hours of electricity using solar upgrades.
Who was with less than three hours of electricity electricity using solar off great debates, we have electrified 84 schools span, India and established 25 digital learning Center.
Speaker 4: Till date, we have electrified 84 schools span India and established 25 digital learning centers.
Positively impacting the lives of children, who live around in these areas.
Speaker 4: positively impacting the lives of children who live around in these areas.
We have also recently signed a long term partnership with HSBC Global financial institution to electrify 74, more schools Ah in and around our areas of operation and scaling up this program significantly community based water management is also on top of our priority and in regions around I just find it.
Speaker 4: We have also recently signed a long-term partnership with HSBC, a global financial institution, to electrify 74 more.
Speaker 4: schools in and around our areas of operation. Hence scaling up this program significantly.
Speaker 4: Community-based water management is also on top of our priority and in regions around Rajasthan and Gujarat we are relying on local knowledge to conserve water through traditional rainwater harvesting methods. These statistics lakes constructed hundred soundcastes and have excavated 18 water ponds across these regions to provide access to drinking water to these communities.
Josh we are relying on local knowledge to convey water. So traditionally rainwater harvesting methods b diesel snakes constructed hundred phone calls and lot excavated eating one upon across these regions to provide access to drinking water to these community women for climate is an extremely important part.
Speaker 4: Women for Climate is an extremely important part of our social engagement work we do in our communities. We have two sets of programs, one for the rural women and one for the urban women.
So far social engagement work, we do in our community. We have two sets of programs once the Hulu them in advance of the urban demand in partnership with <unk>, which is the United Nations and mining program B S, killing traditionally limits for farmers and good job.
Speaker 4: In partnership with UNEC, which is the United Nations Environment Programme, we are skilling traditional women's salt farmers in Gujarat as renewable technicians. So we are re-skilling them to become renewable technicians from salt pan workers. And also as we do that, we are helping them improve their earning capacity as well.
Technician. So we are re skilling, then it becomes a new bed technicians from shorthand workers and also as we do that we are helping them.
That earnings capacity as well.
Boy used to provide training to about a thousand of Midland by 2025.
Speaker 4: Our goal is to provide training to about a thousand women by 2025.
The other programs in partnership with U N D P and I E T Delhi that'd be a mentoring women led assignments talked up and does he have a cohort of six entrepreneur, Yeah main thing and it'll be finishing the program in the next month.
Speaker 4: The other program is in partnership with UNDP and IIT Delhi where we are mentoring women-led climate startups and we have a cohort of six entrepreneurs We are mentoring and they will be finishing the program in the next month.
We initiated a clean cooking initiative in March at the Beach at all digital in fact 10000 families by providing them. The team cooking stoves Mitchell had been reduced admissions and cooking time and increase the productivity and of course have a hugely positive impact on that on the health of women, who cook in these homes.
Speaker 4: We have also initiated a clean cooking initiative in Madhya Pradesh. Our target is to impact 10,000 families by providing them with clean cooking stoves, which will help them reduce their emissions and cooking time and increase their productivity, and of course have a hugely positive impact on the health of women who cook in these homes. This project has the potential to mitigate 30 million tonnes of carbon emissions per year.
This project has the potential to mitigate 30 million tons of carbon emissions, but yeah.
I will now turn it back to some money for guidance and closing remarks.
Speaker 4: I will now turn it back to Suman for guidance and closing remarks.
Yeah, Thank you, especially for that.
Speaker 5: Thank you, Vaiswavi for that. So far through this point in the year, we are on track to meet our guidance which is outlined on slide 22. Our FY23 EBITDA guidance is for more than 20% EBITDA growth above FY22, which translates into between INR66 and 69 billion or 156 to 163 rupees per share.
So far through this point in the year. They are on track to meet our guidance, which is outlined on slide 22.
Our FY 'twenty three EBITDA guidance is for more than 20% EBITDA growth above that 522, which translates into between INR 66, and 69 billion or 156 to 162 per share.
Of this FY 'twenty guidance, we have already achieved about 30% in the first quarter of the year.
Speaker 5: Of this FI23 guidance, we have already achieved about 30% in the first quarter of the year. Our cash flow to equity guidance is Rs. 21-23 billion or Rs. 50-54 rupees per share.
Our cash flow to equity guidance is 21, or 22 billion rupees or 50 to 54 piece bullshit.
As an update on I said he purchased for them do you see considerable value in our shares with a 12% cash flow to equity using our current portfolio. It also trades at a meaningful discount to what we can sell assets for.
Speaker 5: As an update on our share repurchase program, we see considerable value in our shares with a 12% cash flow to equity yields on our current portfolio. It also trades at a meaningful discount to what we can sell assets for.
As I shared that one of the highest return investments of scale. We can make we have been actively buying back stock. When you believe that would provide the highest return opportunity we have repurchased about 12 million shares so far since we implemented the buyback, which leaves us with well over $150 million of authorization remaining for the program.
Speaker 5: As our shares are one of the highest return investments of scale we can make, we have been actively buying back stock when we believed it would provide the highest return opportunity. We have repurchased about 12 million shares so far since we implemented the buyback, which leaves us with well over 150 million dollars of authorization remaining for the program.
One other item that I would like to mention is that in about a week it could be one year since our listing which should allow us to implement some initiatives you're doing that.
Speaker 5: One other item that I would like to mention is that in about a week, it will be one year since our listing, which should allow us to implement some initiatives near term that should help further distance us from the SPAC monitor that has hindered to stop the trackiness to a broader investment audience. We are clearly not a typical SPAC, but we were hampered on what we could do to address this overhang until the amalization of the listing. With that, we will be happy to take questions.
That should help further distance out some of this back moniker that has hindered the stops attractiveness to a broader investor investment audience, you're clearly not a typical back but do you have a handle on what they could do to address this overhang until the amortization of the listing.
With that we will be happy to take any questions.
Thank you.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Speaker 1: We will now begin the question and answer session. If you have a question you may press star then one on your touch screen.
Excuse me a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Speaker 1: Please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we'll pause momentarily to assemble our roster.
At this time, we will pause momentarily to assemble our roster.
My first question comes from Julien Dumoulin Smith from Bank of America. Please go ahead.
Hey, its actually carry car problem. Thanks for taking my questions.
So first wondering if you can update on how you're tracking against your plans for solar manufacturing expansion and then also if you can give us an update around the P O Y if any.
Speaker 2: So first, wondering if you can update on how you're tracking against your plans for solar manufacturing expansion. And also if you can give us an update or on the PLI if any.
Yes about why don't you go ahead and take that.
Yeah.
Yes, sure Julien Hi, Thanks for the question look our solar manufacturing plants.
Speaker 5: Yes, sure. Julian, thanks for the question. Look, our solar manufacturing plants are on track. We expect to get the first set of modules to be coming out by very early next year. And the cell plants should be up and running by around middle of next year. So I think that is more or less on track. And your second question was?
Pat do you expect to get.
The first set of modules to be coming up by a very early next year.
And.
The cell plant should be up and running by Q by around the middle of next year.
So I think that is more or less on track and your second question was.
Just around the peer lie if theres any update there that yeah.
Speaker 2: Just around the PLI if there's any update there. Yeah, on the PLI scheme, the government has been essentially trying to formulate a new PLI scheme, which is now within the government, you know, at some stage of approval. The expectation is that it will come out fairly soon. And then we'll have to bid again for an Earth Day at PLI in prepare ends plans.
On the P&I scheme. The government has been essentially trying to formulate and Upa lies scheme.
Which is now within the government are you know at some stage of approval. The expectation is that it'll come out fairly soon and then we'll have to bid again.
Hum.
All of the things you can get any allocation under that I put everybody else for that matter. So we are waiting for the final details of the scheme to come out and for the final approvals to come through and as I said that should all.
Speaker 5: or see if you can get any allocation under that, as would everybody else for that matter.
Speaker 5: So we are waiting for the final details of the scheme to come out and for the final approvals to come through. And as I said, that should all, to my mind, it should all happen in the next maybe three months.
To my mind.
It should all happen in the next maybe three months or so.
Okay understood. Thanks for the update around the corporate PPA side curious if you can talk a little bit about the differences in returns and risk profile for rebuilding projects versus waiting for a sign contract I would assume maybe higher financing costs offset by market prices for electricity in the past years.
Speaker 2: Okay, understood. Thanks for the update around the COVID PPA side. Curious if you can talk a little bit about the differences in returns and risk profiles for rebuilding projects versus waiting for a signed contract. I would assume maybe higher financing costs offset by market prices for electricity in the past years. But am I kind of thinking about this correctly?
But am I thinking about this correctly.
Yes, Julien there is not really a significant gap on rebuilding and then that's it rebuilding it doesn't mean that we stop necessarily putting up a winter buy what it does mean is that we do fairly proactive project development.
Speaker 5: Yes, Julian, there is not really a significant gap on pre-building and when I say pre-building, it doesn't mean that we start necessarily putting up wind turbines. What it does mean is that we do fairly proactive project development and so make sure that we get the sites to a point where we can then start deploying the wind turbines or the solar modules fairly quickly.
And so make sure that we get the sites to a point that we can then start deploying the winter opines on the solar modules fairly quickly.
The longest lead time in Indian project execution is lumpy actually construction site, but getting the site ready.
Speaker 5: The longest lead time in Indian project execution is not the actual construction at site, but getting the sites ready.
And that takes then it could be less.
Less capital, but as I said does end up taking more time and so that's the part of the accretion that you tend to work on a little bit more proactively.
Speaker 5: less capital, but as I said, does end up taking more time. And so that's the part of the equation that we tend to work on a little bit more proactively. Now, it helps us very significantly because in a number of cases, corporates, you know, want solutions quickly. And if we are in a position where we've already done a lot of the project development work, we can actually provide the solutions to them fairly quickly, rather than starting the process and then saying, you know, it'll take a couple of years.
Now it does is it helps us very significantly because in a number of cases Capex you don't want solutions quickly and if you are in a position that if you've already done a lot of the project developer, but we cannot provide the conditions have been fairly quickly.
And starting the process and then say you know just take a couple of years and so on.
And we are able to do that Julian because we have a number of conversations happening.
Speaker 5: And we are able to do that Julian because we have a number of conversations happening with many corporates on the PPA side. And so therefore we know broadly speaking where these projects are required to be put up or where new capacity is required. And that allows us to do project development on a fairly targeted basis.
With many corporates on the PPA side.
And so therefore, we know broadly speaking bad.
These projects that are required to be put up a venue capacity is it buy it and that allows us to do project developing on a fairly targeted basis.
And ensure that there is a that is a very very strong likelihood of off peak. For example, we haven't had any you shouldn't get bad we built something and we've gone very hot and we haven't found a customer after that and that's unlikely to happen is that as far as the riskiness of the carpet market is concerned in general as we said earlier.
Speaker 5: and ensure that there is a very very strong likelihood of uptake. For example, we haven't had any issue yet where we've built something and or we've gone very far and we haven't found a customer after that and that's unlikely to happen as well.
Speaker 5: As far as the riskiness of the corporate market is concerned in general, as we said earlier, DSOs obviously in the corporate market are very very low and they all pay on time and there is an opportunity to grow organically along with the number of our corporates because corporate India is
Dsos, obviously in the corporate market are very very low.
And they all pay on time and there is an opportunity to grow organically along with a number of hot topics, because obviously it corporate India is growing and expanding and that probably means that increasing as well. So once we have a customer that is relatively easy to continue to work with them and to grow along with them and then you know once you get into the solution in conversation with them.
Speaker 5: going and expanding and their power needs are increasing as well. So once we have a customer then it's relatively easy to continue to work with them and to grow along with them and then you know once you get into the solutioning conversation with them then it's easier to confuse it and convert.
And it's easier to control that then convert a lot of the customers. So so it's really a much more attractive market, which are being able to capitalize on a quite substantially.
Speaker 5: a lot of the customers. So it's really a much more attractive market which we are able to capitalize on quite substantially.
Okay understood. That's very helpful. Thanks, so much for the time.
Okay and she was a question. Please press Star then one.
Our next question comes from Justin Clare from Roth Capital Partners. Please go ahead.
Speaker 1: Next question comes from Justin Clear from Roth Capital Partners. Please go ahead.
Hi, Thanks for taking our questions.
So first off I guess.
Speaker 2: So I guess first off, I just.
Hi.
And and first off in the annual guide here.
Speaker 2: In the annual guide here, I believe that you had previously assumed a $40 to $60 million negative impact from a lower wind resource.
I believe that you had previously assumed.
$40 million to $60 million negative impact or potential negative impact from a lower wind resource.
Just wanted to see you know what was your experience in our fiscal Q1 in terms of the wind speeds that were experienced relative to historical averages. It looks like things have improved meaningfully from previous quarters here and then could you talk about what you've seen in terms of wind speeds.
Speaker 2: I just wanted to see, what was your experience in fiscal Q1 in terms of the wind speeds that were experienced relative to historical averages? It looks like things have improved meaningfully from previous quarters here. And then could you talk about what you've seen in terms of wind speeds so far in terms
So far in Q2.
Why don't I turned out over Q and so much to be honest.
Speaker 6: Kedar, why don't I turn that over to you and Sumat, if you have any further thoughts.
Okay.
No no. That's true I think are roughly the same amount off the way that I've just made was factored into what our new guidance. Fortunately for the first quarter would you have not seen significant impact.
Speaker 3: No, no, that's true. I think roughly the same amount of weather adjustment was factored in our annual guidance. Fortunately, for the first quarter, we have not seen very significant impact. And we'll have to see how this current ongoing quarter goes. There is a little bit of a softening of the wind speeds, but it's too early for us to change anything at this point.
I'm glad to see how this current ongoing quarter goes at it little bit almost often involved.
The wind speeds, but it's too early bought us to change anything at this point of time.
But fourth quarter.
Speaker 3: But first quarter, especially considering May month, which was highly productive, we were not impacted by lower...
Especially considering our main.
The amount which was highly productive.
We were not impacted by lower wind speeds.
Got it Okay. All right. That's helpful. And then just on the the module supply.
Speaker 2: Got it. Okay, good. That's helpful. And then just on the module supply, I know you're bringing online your own manufacturing here, but can you just give us a sense for the current availability of solar modules and how confident you are that you're going to have the supply needed for your near-term project?
I know that you're bringing online your own manufacturing here, but can you just give us a sense for the current availability of solar modules.
And so you know how confident you are that you're going to have the supply needed for your your near term projects.
And then and then just curious you know when you actually do bring the manufacturing online can you talk about the costs that you're expecting for your in house supply versus at least where where module prices are today.
Speaker 2: And then just curious, when you actually do bring the manufacturing online, can you talk about the costs that you're expecting for your in-house supply versus at least where module prices?
Yeah.
Turn it over to you Oh.
Speaker 6: Yeah, I'll turn it over to you. Oh, sorry, go ahead.
Oh, sorry go ahead.
Yeah.
No no what I was just saying is when you start consuming our own captive manufactured the solar panels the way I mean, it impacts our P&L is.
Speaker 3: No, no, what I was just saying is when we start consuming our own capital manufactured solar panels, the way it impacts our P&L is compared to the procured cost of solar panels which get capitalized.
Compared to the procured.
Boss stopped solar panels, which gets capitalized.
Instead, I'll badly captive clause gate replacement back okay. So in terms of the change you will see in the P&L that will be nominal and we are still in the stage two.
Speaker 3: Instead of that, the captive cost gets replaced with that. So in terms of the change you will see in the P&L, that will be nominal. And we are still in a stage to get to the exact levels of efficiency. I think the captive manufacturing is a great lever for us to build supply certainty, given what we are seeing at supply chain rails.
Get to the exact label somebody efficiency I think the gasoline manufacturing into the grid you work for us to build supply certainty given what we're seeing in supply chain risks.
And more importantly, the pocket.
Speaker 3: And more importantly, the 40 percent custom duty which Indian government has placed for imports. So I think it's a lever for us more to build supply certainty, avoid high value custom duty, and we hope it pays out over the long run. So that's the answer to your second question. On the first question, I think our arrangements for wind turbines and modules for the next few quarters are more or less done, but I'll request Suman to give a perspective on this case.
That's some duty between inbound windows plants.
Of course, so I think it's really what brought us more to build supply certainty avoid high value custom duty and we hope it plays out over the long run. So that's the answer to your second question on the first question I think out of the arrangements fall winter binds and modules for the next few quarters are more or less done but I'll.
Requests to your perspective on disputes.
Thank you.
Yeah, Justin as far as the cost of the modules are concerned compared to.
Speaker 5: Yeah, Justin, as far as the cost of our own modules are concerned compared to what would then be the alternative, which is the imported modules plus the
What would then be the alternative which is the imported modules plus the but that's a 40%.
Speaker 5: plus the 40%. In some ways, while you might want to look at it from a cost standpoint, keep in mind that it's not even that. It's really just a question of getting modules because of the other issue around the approved list of models and manufacturers where no overseas company has yet approved. It will be impossible to even import models.
In some ways you know, while it's you might want to look at it from a cost standpoint keep in mind that it's not even that is really just a question of getting modules because because of the other issue around be approved list of module by module manufacturers.
There's no overseas company as it is yet approved.
It'll be impossible to even important modules. So it just it's a question of getting even getting access to module cost issue actually the second thing is that the only modules available would be whatever it is manufactured in India by anybody else and I believe says that Oh, not understanding based on looking at the market.
Speaker 5: So it's a question of even getting access to modules. It's not a cost issue actually.
Speaker 5: The second thing is that the only modules available would be whatever is manufactured in India by any
Speaker 5: And our belief is that and our understanding based on looking at the market.
Is that the total amount of manufacturing capacity available for modules off really high efficiency natus sort of technology and modules is not going to be more than five or six gigawatts to next year, it'll take time for that capacity.
Speaker 5: is that the total amount of manufacturing capacity available for modules of really high efficiency latest sort of technology modules is not going to be more than 5 or 6 GW through next year. So it will take time for that capacity to be set up.
It'll be set up and so it's going to be an issue of actually getting that system already wasn't bad therefore, having had one supply becomes are absolutely critical for.
Speaker 5: And so it's going to be an issue of actually getting access to modules and therefore having our own supply becomes absolutely critical for We can be able to deliver the projects that we have and for delivering growth
For begin to be able to deliver the projects that you have and for the living room and that is really the cost of that is what we have factored into our current capex estimates.
Speaker 5: And the cost of that is what we factor into our current CAPEX estimate.
Okay got it.
Speaker 2: Okay, got it. And then I guess just...
And then I guess just.
Wanted to follow up on that how are you feeling about your.
Speaker 2: wanted to follow up on that. How are you feeling about your...
The capacity that you have planned for your module and shell facilities here are you comfortable with the current amount or could you look to expand and then and then also you know I think your primary just looking at using all of the module supply internally.
Speaker 2: the capacity that you have planned for your module and cell facilities here. Are you comfortable with the current amounts or could you look to expand? And then also, I think you're primarily just looking at using all of the module supply internally, but could you look to sell modules to external customers at some point?
But could you look to sell modules to external customers at some point here.
So Justin at this point right now as you know these talks about six gigawatts of modules, which we are not putting up and two gigawatts of says hey.
Speaker 5: So Justin, at this point, right now, as you know, we've talked about six gigawatts of modules, which we are now putting up, and two gigawatts of cells.
Eventually our aim is to have a balanced cell and module facility are there going a little bit slower on the sell side because you wanted to get the first two gigawatts often gummi are it's a little bit more complex than setting up as a module plant is and so therefore, they wanted to get far advanced on the first two gigawatts before we stopped selling up the values.
Speaker 5: Eventually our aim is to have a balanced cell and module facility. We are going a little bit slower on the cell side because we wanted to get the first two gigawatts up and running. It's a little bit more complex than setting up a module plant is and so therefore we wanted to get far advanced on the first two gigawatts before we start setting up the balanced amount. But that is something that we will be looking at doing at some point over the course of the next...
The amount, but that is something that we will be looking at two eight at some point over the course of the next.
Several months.
Now as far as the question off.
Speaker 5: Now as far as the question of
What we will be doing in terms of selling to other customers and dawn you know that's not something that we're contemplating at this point Justin simply because the total amount that we would be producing them essentially as ive talked about in the past will be enough to do projects off about two to three and a halves gigawatt, which is really what we are.
Speaker 5: what we will be doing in terms of selling to other customers and all. You know that's not something that we're contemplating at this point Justin. Simply because the total amount that we will be producing will essentially as we've talked about in the past will be enough to do projects of about 3 to 3.5 GW which is really what we expect to be setting up ourselves.
To be producing to be setting up ourselves. So we don't really expect to have capacity available for third party sales Ah you know in the near future.
Speaker 5: So we don't really expect to have capacity available for third-party sales in the near future.
Of course, you know having said that the reality is most of the market is dynamic and we look to see what is happening but at this point in time.
Speaker 5: Of course, having said that, the reality is the market is dynamic and we look to see what is happening.
Speaker 5: But at this point in time, our going hypothesis is that we will be supplying to our country.
Great and hypothesis is that we will be supplying to watch that.
Got it Okay and then maybe just one more I was wondering if you could just talk about the you know the types of customers that you're serving in the corporate market and.
Speaker 2: Got it. Okay. And then maybe just one more. I was wondering if you could just talk about the types of customers that you're serving in the corporate market. And is it possible to serve those customers in a more programmatic way where you're potentially doing multiple projects for the same...
And is it possible to serve those customers in.
More programmatic way, where you're potentially doing multiple projects for the same.
Customer and in different regions, and then and then I'm also curious on the competitive side. You know are you seeing more entrants into that Ah corporate market I mean, right now it sounds like Theres only private competitors are you anticipating larger larger players.
Speaker 2: customer in different regions. And then I'm also curious on the competitive side, are you seeing more entrance into that corporate market? Right now it sounds like there's only private competitors. Are you anticipating larger players?
Yeah.
Yeah. So you know.
Speaker 5: Yeah, so you know, I think what is happening is right now a number of corporates in India are looking at buying clean energy for the first time. And so they are sort of getting into it with the first step.
I I think what is happening is right now a number of corporates in India are looking at buying clean energy for the first time and so they are they are sort of getting into it with the.
The first step.
And therefore, they're taking a little bit longer to understand and are they are going to head with let's say E. It's a smallish megawatts to begin with are the smaller project to begin with it now and then that's why you know we've been talking about corporate Ppas for a while and we've always said that it's going to take time for us to build momentum but.
Speaker 5: and therefore they are taking a little bit longer to understand and they are going ahead with let's say a smallish megawatts to begin with for a smaller project to begin with.
Speaker 5: Now, and that's why, you know, we've been talking about corporate PPS for a while, and we've always said that it's going to take time for us to build momentum. But we've now after a lot of effort over the last year or two, we've been able to build that momentum and that effort.
Now after a lot of effort over the last year or two we've been able to build that momentum and that effort now you're absolutely right. As these seem complex and I'll get familiar and comfortable and they recognize the cost savings that they're able to get and the value that they can get in terms of going to eat they been stopped looking at ramping up.
Speaker 5: Now you're absolutely right, as the same corporates now get familiar and comfortable and they recognize the cost savings that they're able to get and the value that they can get in terms of going green, they will start looking at ramping up their activity and their purchase in clean energy. And there for us to be the company that has done the first project with them, hopefully have given them a good experience.
There is activity and approaches in clean energy and then for us to be the company that has done the first project with them hopefully you haven't given them a good experience.
And keep in mind. The point you were making back in a number of cases from a regulatory standpoint are the customer needs to take that 26% equity stake as well. So they want the counterparty either developer to be a really credible counterparty and actually that you tend to have a significant advantage. So as we go forward, how they're busy too.
Speaker 5: And keep in mind the point you were making that in a number of cases from a regulation standpoint, the customer needs to take a 26% equity stake as well. So they want the counterparty i.e. the developer to be a very credible counterparty and that's really where we tend to have a significant advantage.
Speaker 5: So as we go forward, our ability to penetrate into these customers for their future needs, the existing needs as well as the future growth that they will have, will be quite good. And that is therefore something that we will continue to work with these corporate customers on and hopefully develop on a more problematic basis as you suggested we should be doing and that's exactly what we are working on.
And it trades into these customers for their future needs.
The existing needs as well as the future goes up there's a lot will be quite good and that is therefore something that we will continue to work with these corporate customers on and hopefully develop on a more programmatic basis. As you suggested we should be doing and that's exactly what you have or if you want.
Now other competitors coming in.
Of course, they are you would expect other companies who see the attractiveness of this market to try to come in.
Speaker 5: Of course they are, you would expect other companies who see the attractiveness of this market to try to come in. But because of the effort that we put in over the last couple of years and the amount of progress we made in a number of very serious and significant conversations we are having, we have a long runway to go of conversations that we can conclude before any of our competitors begin to get in..
But because of the fact that we've put in over the last couple of years and the amount of.
The amount of sort of progress we made in a number of very serious and significant conversations you're having.
We have a long runway to go off conversations that we can conclude before any of our competitors are beginning to get in the other thing is that we had a very.
Speaker 5: The other thing is that we are a very good counterparty for them because of our independent governance, our NASDAQ listing. That gives us a bit of a halo which also gets customers who in some ways want to deal with that.
Good counterparty for them because of all the independent governance.
Our NASDAQ listing that gives us a bit of a halo, which are also let you know that gets our customers too.
All of us want to be with us. So I think that's also an advantage that we bring to the table and it just for those reasons that we feel that this market will continue to be very attractive for us and in our view our expectation is that almost a quarter of our total portfolio over the next two years will come from the corporate customer base.
Speaker 5: So I think that's also an advantage that we bring to the table and it is for those reasons that we feel that this market will continue to be very attractive for us. And in our view, our expectation is that almost a quarter of our total portfolio over the next few years will come from the corporate customer base. Okay, got it. Appreciate it. Thank you.
Okay got it appreciate it thank you.
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