Q3 2024 ReNew Energy Global PLC Earnings Call

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Operator: Thanks for watching! www.renewenergy.org. Thank you for standing by, and welcome to the Renew Third Quarter Fiscal Year 2024 Earnings Report. All participants are in a listen-only mode.

Thank you for standing by and welcome to doesn't you third quarter fiscal year 'twenty 'twenty four earnings report.

All participants are in a listen only mode.

Nathan Judge: There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Nathan Judge, Investor Relations. Please go ahead. Thank you, Betsy, and good morning, everyone, and thank you for joining us. This morning, the company issued a press release announcing results for its fiscal 2024 third quarter ended December 31, 2023. A copy of the press release and the presentation are available in the Investor Relations section on Renew's website at www.renew.com. With me this morning are Samant Sinha, Founder, Chairman, and CEO, Kailash Varshwani, our CFO, and Vishali Nigam Sinha, Co-Founder and Chairperson, Sustainability. Following prepared remarks, we will open the call for questions. Please note that our Safe Harbor statements are contained within our press release, presentation materials, and materials available on our website. These statements are important and integral to all our...

There'll be a presentation followed by a question answer session.

If you wish to ask a question you will need to press the star key followed by the number one on your telephone keypad.

I would now like to hand, the conference over to Nathan Judge Investor Relations. Please go ahead.

Thank you Betsy and good morning, everyone and thank you for joining us.

The company issued a press release announcing results for its fiscal 2024 third quarter ended December 31 2023.

A copy of the press release and the presentation are available on the Investor Relations section on renews website at Www Dot renewed dot com.

With me. This morning are some months anyhow, founder chairman and CEO highlights for Suwanee our CFO.

And Michelle any gum, and a co founder and chairperson sustainability.

Prepared remarks, we will open the call for questions.

Please note our safe Harbor statements are contained within our press release presentation materials and materials available on our website.

These statements are important and 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. So we encourage you to review the press release refreshing our form 6K and presentation on our website for a more complete description.

Nathan Judge: There are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such a forward-looking statement. Therefore, we encourage you to review the press release we filed in our Form 6K and the presentation on our website for a more complete description. Also contained in our presentation materials and annual report are certain non-IFRS measures that we reconciled to the most comparable IFSR measure. And these reconciliations are also available on our website, in the press release presentation materials, and our annual report. It is now my pleasure to hand it over to Samant. Yeah, hi. Thank you, Nathan. Good morning and good evening to everybody on this call.

Also contained in our presentation materials and annual report or certain non F or S measures that we reconciled to the most comparable GAAP.

Measure and these reconciliations are also available on our website and the press release presentation materials and.

Our annual report.

It is now my pleasure to hand, it over to <unk>.

Yeah, Hi, Thank you Nathan good morning, and good evening to everybody on this call.

Samant: I'm glad to have you on our third quarter fiscal year ended 2024 earnings call. The calendar year 2023 marked a significant milestone for the Indian renewable energy sector, as well as for us. India, now the world's most populous nation, has experienced a surge in power demand, necessitating the need for more power. In April of 2023, the Ministry of New and Renewable Energy ramped up the auction calendar significantly in a bid to achieve the country's 500 gigawatt target for renewable energy installations. The government's commitment has not translated into action, and a record number of auctions have been conducted so far during the year.

I'm glad to have you on our third quarter fiscal year ended 2024 earnings call.

The calendar year 2023 marked a significant milestone for the Indian renewable energy sector as well as what else.

India now.

The world's most populous nation has experience with golden power demand necessitating the need for more Pablo.

In April of 'twenty 'twenty Pete.

The Ministry of New Orleans, and noble energy ramped up the auction calendar significantly in a bid to achieve the country's 500 gigawatt target for the Newbuild LNG installations.

The government's commitment has not transpired into action and a record number of auction have been conducted so far during the year.

Samant: So far in fiscal 2024, we have seen more than 40 GW of auctions being conducted, which is a significant increase over last year when about 12 GW of capacity was offered. Not only this, but we are also tracking another 70 gigawatts of central and state tenders expected to be auctioned over the next few months. As India intensifies its Made in India initiatives to become a global manufacturing hub more broadly, the imperative for securing reliable power becomes even more pronounced.

So far in fiscal 2020 full you have seen more than 40 gigawatts of auctions be conducted which is a significant increase over last year.

12 gigawatts of capacity reduction.

Not only this year.

We had also tracking other 70 gigawatts of central and two tenders are expected to be auctioned over the next few months.

As India has intensified with me Megan India initiative to becoming global manufacturing hub more broadly.

Embedded security reliable power will become even more pronounced.

Samant: This expansion of the addressable renewable energy market has provided developers such as us with the most favourable environment in the renewable energy sector that we have seen yet, as the number of auctions has increased significantly, competition has peeled off a little bit, leading to the discovery of higher tariffs. The subscription rate for new auctions declined significantly this fiscal year and was the lowest on record this past quarter, often less than 100% of the capacity being auctioned for complex projects, resulting in auctions clearing pretty much at the initial bid price. Year-to-date, we have seen an increase in tariffs, and in particular in wind auctions, which increased 14% year-on-year. Our differentiated ability to win makes us stand out in a market where there are far fewer developers with this ability.

This expansion of the addressable renewable energy market has provided developers such as that the more favorable environment in the renewable energy sector that we have seen yet.

As the number of auction has increased significantly competition has turned off a little bit leading to the discovery of Ohio status.

The subscription we put new auction has declined significantly this fiscal year.

And one of the lowest on record this past quarter.

Awesome less than 100% of the capacity auction for complex for this.

I'll dig in auction bidding pretty much it'd be a little bit also.

Year to date, we have seen an increase in Dallas and in particular in wind auction.

It increased 14% year on year.

Our differentiated ability to do really makes us stand out in a market, where there are far fewer developers with disability.

We note that even with the increase in better than.

Samant: We note that even with the increase in tariffs, renewable energy continues to be the lowest cost source for new electricity supply in the country, considerably cheaper than the primary competitive alternate, which is coal power. Beyond the rise in tariffs, we saw several other factors that are supporting better returns, such as a record fall in the cost of solar modules. Adequate domestic debt financing and a significant reduction in receivable days. The year, which started with a litany of challenges, has become one of the most favourable markets for renewal in our history, as we approach the onset of fiscal year 2025. We eagerly anticipate leveraging the new opportunities that have arisen during the year, especially in complex firm power, such as the round-the-clock power and peak power projects that are currently under construction. This demand for complex projects is clearly evident in the rising percentage of such projects and such options. This fiscal year, complex projects represented about 38% of total capacity being auctioned, significantly more than 8% of the total amount last year.

Renewable energy continues to be the lowest cost source of new electricity supply in the country.

But in terms of the cheaper than the primary competitive arc, Nick Nikitas called Paolo.

Beyond that I was in Paris.

We bought several other factors that are supporting better to come.

It does it it got pulled in the cost of solar module.

Cable ethics.

Adequate domestic debt financing.

A significant reduction in receivable days.

The other started with a litany of challenges has become one of the most favorable market for the new and not his seat.

As we approach the onset of fiscal year 2025.

We eagerly anticipate leveraging the new opportunities that have arisen during the up.

Especially in complex pump, although that does the round the clock power and peak power projects that are currently under construction.

This demand.

For complex, but this is clearly evident in the rising percentage of pets.

And touch auction.

This can be a complex car they represented about 38% of total capacity auction.

It can be more than the 8% of the total amount last year.

This is set to increase further to 44% of the tender that we expect to be auctioned over the next several months.

Samant: This is set to increase further to 44% of the tenders that we expect to be auctioned over the next several months. We continue to see higher returns in complex auctions, and a greater share of our wins are in this subset. Renew has clear competitive advantages in complex auctions, and as a result, our market share in these auctions is better than any of our peers. Firstly, moderating these projects is not, and furthermore, executing complex projects requires expertise in developing wind, integrating multiple sources of power through the use of digital tools, as well as Zubak Project Management. Something that most players in the sector lack.

We continue to see higher returns and complex auction in the greater Seattle, Vince I didn't this subset.

When you have clear competitive advantages and complex auction and as a result, our market share in these auctions is better than any of our peers.

Firstly modeling described this is not easy.

Further executing complex projects requires expertise in developing Vin.

Integrating multiple sources of power to the use of digital tools.

As well as robust project management.

That most players in the sector luck.

Our in house EPC capability.

Samant: Our in-house wind EPC capability, our in-house digital labs, and our ability to access the cheapest source of capital do ensure superior returns on our projects. The year is set to be a milestone year for us. On the execution front, the year will see a significant increase in our operating portfolio, and most of the under-construction pipeline will become operational, providing top-line and bottom-line growth. Now turning to highlights for the quarter on page 4, we are increasing the bottom end of our adjusted EBITDA guidance range to INR 63 to 66 billion. Amidst the record-breaking years of megawatt installations, we expect that about 1.75 gigawatts to 1.95 gigawatts will be generating revenue by the end of fiscal year 2024. Beyond the currently commissioned 825 megawatts, we have erected 425 megawatts of wind turbines and another 620 megawatts of solar module installations.

You know how does at the lab and that ability to access the cheapest source of capital do ensure a superior return on our projects.

The other <unk> that could be a milestone year for us as on the execution from the oven and see a significant increase in our operating portfolio as most of the under construction pipeline will become operational providing topline and bottom line growth.

Now turning to highlights for the quarter on page four we.

We are increasing the bottom end of our adjusted EBITDA guidance range to INR 63 to 66 billion.

I'll Miss thing record breaking year megawatt installation, we expect that about 1.75 gigawatts to 195, Gigawatts will be generating revenue by the end of fiscal year 2024.

Beyond the currently commission eight times, playing time megawatt yeah, but it could fall in 75 megawatts of wind turbine and another 620 megawatts of solar module installations.

Our strategy of asset recycling continues to provide us with cost effective capital for expansion.

Samant: Our strategy of acid recycling continues to provide us with cost-effective capital for expansion. Last month, we signed a deal for the sale of a 300 megawatt solar asset commissioned two years ago, and we anticipate receiving proceeds of approximately U.S. dollars $82 million by year end. The asset was valued at US$199 million.

Last month, we signed a deal for the sale of a 300 megawatt solar that's it commission two years ago.

And we anticipate receiving proceeds of approximately U S dollars 82 million by year end.

Yes, it was valued at $1 199 million.

Samant: This transaction will further bolster the substantial sum raised through asset recycling thus far and at the same time enhance the returns on capital deployed on projects. We expect that we will realize a gain of about US dollars 30 to 34 million as a gain in our Q4-24 EBITDA. Do note that our FY24 adjusted EBITDA guidance of INR 63 to 66 billion does not include this gain.

This comes back to them and further bolstered a substantial sum these two activities taken thus far.

Tim Diamond has done it comes on the capital deployed on projects.

We expect that we will realize a gain of about U S dollars could be the $34 million as again in our Q4 'twenty four.

<unk> EBITDA.

Do note that that FY 'twenty part of adjusted EBITDA guidance.

INR 63 to 66 billion does not include this game.

A good trajectory remains robust.

Samant: Our growth trajectory remains low, but as we won an additional 3.6 gigawatts of RE projects during the quarter in a period when tariffs are rising, costs are falling, and competition is near record lows, which underscores our ability to secure growth and attractive returns. We point this out because last year, when all these factors were unfavorable and returns for new projects were much lower, our market share was a mere 3%, well below our normal market share of 10% or thereabouts. Comparing it to this year, in an environment where returns are much higher, we have won about 15% of all auctions. We believe, and that is on top of a bigger base.

As we bundle additional seaborne 60 Gigawatts of Rd project during the quarter in a period. When does this start rising costs are falling and competition is near record lows.

And just called out ability to secure growth at attractive returns.

We point this out because last year in all of these factors, but unfavorable and we've done some new blood is so much lower.

Market share was a mere 3%.

Well below our normal market share of 10% or thereabout.

Comparing it to this year in an environment, where it comes a much higher we have been about 15% of all auction.

We believe and that is on top of a bigger base.

Samant: We believe that this illustrates our commitment to capital discipline rather than just market share. We are pleased also to report that our DSOs, our days outstanding, have fallen below 100 days and stood at 86 days at the end of the quarter, marking a significant improvement of 92 days within the span of a year and an even greater improvement from the peak of 272 days only a couple of years ago. Prioritization of timely collection of payables remains paramount for us as it fortifies our competitive stance in the market and has released nearly $200 million of cash for growth. We believe that DSOs will continue to improve over time. Furthermore, there has been a notable enhancement in wind PLF this year. Father Corker said the 17% wind PLF was a meaningful improvement over the 14.7% PLF in the prior comparable quarter, and year-to-date, the wind PLF was at 29.2%, better than the wind PLF of 27.3% last year. While the uptrend in wind PLS is encouraging, and there is increasing evidence that wind speeds are recovering towards long-term normal levels in the long term, our guidance does not take this into consideration in an effort to remain conservative.

We believe that this illustrates our commitment to capital discipline, rather than just market share.

We are pleased also to report that idea to our base.

Many have fallen below 100 days and stood at 86 days at the end of the quarter.

Marking a significant improvement of 92 days within the span of a year.

And then even greater improvement from the peak of two one times could do this only a couple of years ago.

That addition of timely collection of tables remains Paramount for us as it fortifies our competitors come in the market and as we leased nearly $200 million of cash for growth.

We believe that DSO will continue to improve overtime.

Furthermore, there has been a notable enhancements it will be less this year.

For the quarter.

The 17% will be and it was a meaningful improvement over the $14, 7% below in the prior comparable quarter and year to date. The V. P. N F was about well that 29, 2% better than the wind P&L of 27, 3% last year.

Why does he opinion will be enough to be encouraging.

And there is increasing evidence that they are recovering to work long term normal level in the long term.

Our guidance does not take him to take this into consideration in an effort to remain comfortable with it.

I'm proud to say that we were profitable for the trailing 12 months period with a profit of 44 million.

Samant: I am proud to say that we were profitable for the trailing 12-month period with a profit of US$44 million. We recognize that many investors consider profitability as a key investment decision metric, and these results should increase R&W's attractiveness to a broader universe of investors. While our cash flow from operations has always been positive and growing, we believe that we are now at the scale needed to be profitable consistently on an annual basis and be able to showcase the full value of our platform. We reported cash from operations of US dollars 6 and 16 million for the 9-month period ended December 31, 2023, compared to US dollars 595 million for the prior period. Our profit after tax was US$43 million for the 9-month period this year, compared to a loss in the prior comparable period, an improvement of almost US$100 million. Turning to page 5.

We recognize that many investors consider profitability is a key investment decision metric and these results shouldn't be uninterrupted effectiveness.

The universe of investors.

While our cash flow from operation has always been possible ongoing.

We believe that we are now at the scale needed to be profitable consistently on an annual basis.

I'll be able to showcase the full value of our platform.

We reported cash from operations of $616 million for the nine months period ended December 31, 2023 compared to the U S. All of those 595 million part of Iot.

Our profit after tax was U S out of 43 million for the nine months period, this year compared to a loss in the prior comparable period an improvement of almost.

I think U S $100 million.

Turning to page five.

Electricity demand growth and the macro economic environment.

Samant: Electricity demand growth and the macroeconomic environment continue to favor RE development in India. Firstly, the auction markets continue to propel a larger number of auctions and better tariffs. Over 40 gigawatts of auctions have already been completed year to date, and various state and central agencies are working towards another 70 gigawatts, likely to be completed over the next few months. Not only this, but the share of complex projects went from 8% last year to about 38% this year, signaling a persistent shift towards complex projects. Furthermore, tariffs continued to trend upwards as there was less competition. Among the tenders that we are tracking, we expect the share of complex projects to go up even further, owing to the need for firm power in the country.

Can you also give us a redevelopment in India.

Firstly, we auction market continue to propel a larger number of auction and better paddles.

Well it was 40 gigawatts.

Our teams have already been completed yet the good and bad state and central agencies are working towards another 70 gigawatts.

Likely to be completed over the next few months.

Not only did the share of complex projects went from 8% last year, but could be important this year signaling a persistent shift towards complex targets.

What are the tariffs continue to tend to trend upwards as there was less competition.

Amongst the tenders that we are tracking we expect the shadow complex car needs to be go up even further leading to the need for southern power in the country.

Secondly cost to construct a REIT continues to improve and solar module prices that make up 40% to 50% of the total cost to construct a solar farm has.

Samant: Secondly, the cost to construct RE continues to improve as solar module prices that make up 40 to 50 percent of the total cost to construct a solar farm have fallen by around 55 percent from the prior quarter to hit historical lows of about US dollars 11 cents per watt peak. So let me say that again: they've fallen to hit 11 cents per watt peak.

Fallen by around 55% from the prior quarter to hit the historical lows of about U S. Dollars 11 cents per Watt peak. So let me say that again, they fall into his 11th and <unk>.

What peak.

In addition supply related challenges that confront us last year, but as long as our own manufacturing facility came online during the year.

Samant: In addition, supply-related challenges that constrained us last year were resolved as our own manufacturing facility came online during the year. We would note that the cost of sales has broadly mirrored the decline seen in module prices, making our manufacturing costs comparable with imports after considering the BCD or import duty. Turning to page 6.

We would note that the cost of sales is largely mirrored the decline seen in module prices, making our manufacturing cost competitive bid import after considering the BCD or import duty.

Turning to page six.

Samant: Our patient and selective approach to auctions has ensured that we are able to deliver superior returns on our projects. With over 40 gigawatts of projects auctioned in the current year, there have been several auctions that were undersubscribed. Lower competition in auctions enables us to lock in superior tariffs, and we saw subscription levels lower than 100% in auctions for complex projects.

Our patient and selective approach in auction has ensured that we are able to deliver superior returns on our projects.

Over 40 Gigawatts of projects all of them in the current year. There had been several options that were undersubscribed lower competition in auctions enables us to lock in subito status and we saw subscription levels northern 100%.

Auctions for complex projects.

Samant: Our in-house EPC and an integrated supply chain that ensures delivering large projects on time enable us to bid comparatively, securing higher returns. Our digital and AI platform, bundled with our experience in developing complex solutions, provides us with a significant advantage over others. While we don't pursue market share, our market share has gone up by almost five times compared to the prior fiscal year, from having only a 3% market share last year, when returns were much lower, to about 15% market share this fiscal year, with projects that are predicted to have significantly higher returns. We will continue to be disciplined in our approach to growth and pursue the highest return opportunities in the market. Turning to page 7, our core strength lies in our ability to execute projects over time and on time, within budget, and deliver initially expected returns. The on-ground progress remains strong as we have erected about 1.9 GW of assets on the ground.

I mean, how deep you see and then integrated supply chain that insurers delivering large projects on time enabled us to bid competitively securing higher returns.

Our digital and AI platform bundles without experience in developing complex solution provides us with a significant advantage over others.

While we don't pursue market a market that has gone up by almost five times compared to the prior fiscal year from having only a creep up in market share last year. When returns are much lower to about 15% market said this fiscal year with projects that are predicted to have significantly higher returns.

We'll continue to be disciplined and not of course to grow and pursue the highest return opportunities in the market.

Turning to page seven.

<unk> strength lies in our ability to execute projects overtime and on time within budget and deliver initially expected because.

The online progress remains strong as we ever did about one nine gigawatts of assets on the balance.

Samant: Of this total, 825 megawatts of projects have already received COD approval, and in addition, we have erected 424 megawatts of wind turbines and installed 620 megawatts of solar modules. During this period, we also installed a 150 MWh battery storage facility for our Peak Power project. In addition, we also commissioned 276 kilometers of transmission during the quarter.

After school, who Eaton 25 megawatts of projects have already received the.

The approval and in addition, we have acted on 24 megawatts of wind turbine and then 620 megawatts of solar modules.

During this period, we have often called the hunk 50 megawatt battery storage facility for that.

Peak power project.

In addition, we all could commission to 176 kilometers of transition during the quarter. We are beginning to see real constraints emerging in getting access to interconnection hub.

This new business for US is beginning to provide considerable competitive advantages in bidding for new projects.

With that I would like to turn it over to Carlos to grow with the latest financials.

Kailash: We are beginning to see real constraints emerging in getting access to interconnection hubs, and this new business for us is beginning to provide considerable competitive advantages in bidding for new projects. With that, I would like to turn it over to Kailash to go over the latest financials. Thank you so much.

Thank you Samantha.

Turning to page nine inch.

Interest from domestic lenders for a project continues to be strong.

Recently, we were able to refinance at dollar tree 25 million bond in the domestic market with an interest rate that was around 200 basis points lower than the lander interest rate on that bond to the refinancing we were once a week once again able to demonstrate how we have been able to provide long term finance through our projected interest rates.

Kailash: Turning to page 9, interest from domestic lenders for our project continues to be strong. Recently, we were able to refinance a $325 million bond in the domestic market with an interest rate that was around 200 basis points lower than the landed interest rate on that bond. Through the refinancing, we were once again able to demonstrate how we have been able to provide long-term finance to our projects with interest rates of 9%. In India, the EU spread for Indian RE debt has compressed significantly as the sector has matured.

9%.

In India, the East pit Bull Indian Audi there has compressed significantly as the sector has matured while we stay focused on domestic debt market given their low cost with a U S. Dollar green bond market, we have seen deals on our own U S. Dollar bond improved by about 200 basis points and it didn't work last four months.

Also worth noting that the average spread on our bonds are about the same level as it was at the beginning of the fed tightening cycle back in 2022.

Turning to page 10, our asset recycling program continues to see strong interest from international investors as well as domestic players.

Kailash: While we stay focused on domestic debt markets given their low cost compared to the US dollar green bond market, we have seen yields on our own US dollar bonds improve by about 200 basis points in a little over the last four months. It is also worth noting that the average spread on our bonds is about the same level as it was at the beginning of the Fed tightening cycle back in 2022. Turning to page 10, our asset recycling program continues to see strong interest from international investors as well as domestic players. Last year, last month, sorry, we signed an agreement for the sale of a 300 megawatt solar asset and expect to receive about 82 million dollars in net proceeds by the year-end. The proceeds from this asset sale are expected to be reinvested in projects that, in the current strong building market, where project costs to run with EBITDA are in the range of 6.5 to 7.5 times EBITDA, should have even higher returns than the one just sold.

Last year last month's salary, we signed an agreement for the sale of a 300 megawatt solar assets and expect to about $82 million.

Off net proceeds by year end.

Which is the fiscal yearend.

The proceeds from this asset sale are expected to be reinvested in project that in the current strong building market, where project cost to run rate EBITDA in the range of six and half to seven times.

Times EBITDA should have even higher return than the one that sold.

Subject to the rate at which we can raise growth capital from asset recycling, we should be able to grow one going in house Giga Watt Metcalfe asset recycling without having to issue any new shares asset recycling effectively provides us with long term growth cap of tea at the cheapest possible cost of equity.

And thereby enabling us to grow while enhancing returns on caffeine.

Turning to page 11, we reported profit after tax for the nine months period, ending 30 towards December 'twenty two 'twenty three.

Kailash: Subject to the rate at which we can raise growth capital from asset recycling, we should be able to grow 1 to 1.5 gigawatts net of asset recycling without having to issue any new shares. Asset recycling effectively provides us with long-term growth capital at the cheapest possible cost of equity, thereby enabling us to grow while enhancing returns on capital. Turning to page 11, we reported profit after tax for the nine-month period ended 31st December 2023 of USD 43 million, as compared to a loss of approximately US$60 million in the prior year. This was driven primarily by higher revenues and savings in finance costs.

Peaceful 43 million.

As compared to a loss of approximately USD 60 million in the prior year.

This was driven primarily by higher revenues and savings in finance costs. During the quarter, we saw significant improvement in Wynn palace as compared to the prior comparable quarter. The winter during the quarter was 17% compared to 14, 7% in the same quarter last year bolstering our confidence about the recovery in the long term would be.

What's normal normalized level.

Though our guidance expect there's pieces being the same as last year.

Our operating capacity increased by 940 megawatts or the last comparable quarter in the prior year, an increase of about 12%.

We reported an EBITDA and adjusted EBITDA of U S. Dollar 150 million for quarter, three FY 'twenty cool and increase of about 8%. The highest EBITDA is primarily attributable to additional revenue from project commissioning during the period. This was partially offset by higher operating costs in line with the increase in capacity.

Kailash: During the quarter, we saw significant improvement in wind PLF as compared to the prior comparable quarter. The wind PLF during the quarter was 17% compared to 14.7% in the same quarter last year, bolstering our confidence about the recovery in the long-term wind PLF towards normalized levels, though our guidance expects wind speeds will be the same as last year.

On to page 12, our days sale outstanding now stands at only 80 60, an improvement of about 92 days so when we get.

Our focus towards ensuring timely cash collection in pursuing this comes to resolve issues is now being exhibited.

During the year, we have been able to release about $82 million of cash flows and the current FY 'twenty full by timely collection of current juice as well as the coverage for people to one.

Turning to page 13, our balance sheet continues to expand and improve our cash balance stood at 1.1 billion.

Kailash: Our operating capacity increased by 940 MW over the last comparable quarter in the prior year, an increase of about 12%. We reported an EBITDA, an adjusted EBITDA, of US $150 million for Q3 FY24, an increase of about 8%. The higher EBITDA is primarily attributable to additional revenue from project commissions during the period. However, this was partially offset by higher operating costs in line with the increase in capacity. Turning to page 12, our outstanding day sales outstanding now stands at only 86 days, an improvement of about 92 days from a year earlier.

During the $25 million, which was repaid in January.

This year and unfortunately, I will make there was about U S dollar $5 4 billion.

During January of this year, we refinanced our 225 million dollar bond maturing keep liquidity pool, the 200 basis points.

And extending the maturity neutropenia is based on the current level of interest rates. We continue to evaluate opportunities wherein we are able to refinance debt at lower interest rate than the coupon on that debt.

This year in addition to the $8 billion Mou that we signed with PFC and RBC, we have signed an additional mou with ABB for about $5 $2 billion of debt financing, bringing the total amount.

Kailash: Our focus towards ensuring timely cash collection and pursuing discounts to resolve issues is now paying its dividends. During the year, we have been able to release about $82 million of cash flows in the current fiscal FY24 through timely collection of current dues as well as recovery for the older ones. Turning to page 13, our balance sheet continues to expand and improve. Our cash balance stood at over $1.1 billion, excluding the $325 million which was repaid in January of this year, and our project level net debt was about $5.4 billion.

In fact, this is Scott Purdy, who worked with 10 billion DRAM will use enable us multiple avenues to which we can access data competitively and reduced the interest rate burden on our profit and loss account.

With that I would like to turn it over to wish all of you to talk about our ESG initiatives.

Thanks Kayla.

Turning to page 15.

Building on the positive momentum of the past quarter.

Sharing an update on some of the key ESG ratings and awards we have achieved.

It just seemed a score of 79 to five in Representatives, which is an increase from our earlier score of 77 in fiscal year 'twenty one 'twenty two.

Kailash: During January of this year, we refinanced our $325 million bond, maturing April 24, saving 200 basis points and extending the maturity to 15 years. Based on the current level of interest rates, we continue to evaluate opportunities wherein we are able to refinance debt at a lower interest rate than the coupon on that debt. This year, in addition to the $8 billion MOU that we signed with PFC and REC, we have signed an additional MOU, this one with ADB, for about $5.3 billion of debt financing, bringing the total amount of access to capital to over $13 billion. These MOUs enable us to create multiple avenues through which we can access debt at a competitive rate and reduce the interest rate burden on our profit and loss. With that, I would like to turn it over to Vishali to talk about our ESG industry. Thanks, Kailash. Turning to page 15.

His best among all electric utilities in IPP corporates in India for fiscal year 'twenty, two 'twenty three I'm second among electric utility.

Globally.

We were also recognized as one of the top performing companies by sustaining T sport as regional and industry leaders.

We continue to maintain our CDP climate change trading to be which is the management bank, which is higher than the Asia region and outrageous C.

<unk> seen as a renewable power generation sector average would be.

And S. M D C. S. C. A score has increased from 53.

Oh $2 53 from 40 months.

We received multiple awards, including the prestigious terracotta scene for actively leading the charge to create a climate and nature positive future.

We also received the World Economic Forum lighthouse for the second time for a leadership in fourth industrial Revolution technologies and highest category of recognition, which is resilient by C. III climate action program, which as cap 2.0.

Vishali: Building on the positive momentum of the past quarter, we are sharing an update on some of the key ESG ratings and awards we have achieved. We received a score of 79.25 in Refinitiv, which is an increase from our earlier score of 77 in FY21-22. This is the best among all electric utilities and IPP corporates in India for FY22-23, and second among electric utilities and peers globally. We were also recognized as one of the top-performing companies by Sustaineetics, both as regional and industrial leaders.

Social responsibility continues to remain integral to our business. Since 2014, we have insurance lives over a million people across 500 villages across India.

Timing over 10 states.

On the right hand side of the deck are some of the key programs, which also include employee participation.

And then I think life's program. The electrification of 60 schools is under progress in partnership with HSBC.

The climate curriculum was rolled out to 9000 students.

Next Julio which is implemented in partnership with you.

Nearly 210 women have completed their training as renewable energy technicians, who are used to work in the very hard so law.

Vishali: We continue to maintain our CDP climate change rating to B, which is the management band, which is higher than the Asia regional average of C and the same as the Renewable Power Generation Sector Average of B. In S&P CSA, our score has increased to 53 from 41. We received multiple awards, including the prestigious Terracotta Seal for actively leading the charge to create a climate and nature-positive future. We also received the World Economic Forum Lighthouse for the second time for our leadership in the fourth Industrial Revolution technologies and the highest category of recognition, which is resilient, by CII's Climate Action Program, which is CAP 2.0. Social responsibility continues to remain integral to our business.

Excuse me, sorry, pardon me area into drop.

The ninth edition of gift forms campaign 2023 has benefited around 200000 people.

Back to you. Thank you.

Yes, Thank you Shelly.

Turning to our annual guidance.

Yeah. There is in the bottom end of our FY 'twenty guidance range by 2% and now expect that 525, adjusted EBITDA of INR 63 to 66 billion.

As we said earlier this excludes gains on sale of assets.

On construction, we expect that about 175 gigawatts to 195, Gigawatts will be generating revenue by the end of the.

And some of our projects have received the extension this prevents presents an opportunity to sell power on the exchange as prices often.

Substantially higher than than the PPA Darius.

With regards to other 525 guidance, we anticipate carrying that outlook with investors during our fourth quarter FY 'twenty earnings call.

Vishali: Since 2014, we have influenced the lives of over a million people across 500 villages across India, spanning over 10 states. On the right-hand side of the deck, are some of the key programs, which also include Employee Participation. Under the Lighting Lives program, the electrification of 60 schools is under progress in partnership with HSBC. The climate curriculum was rolled out to 9,000 students.

We would remind investors that we sold 400 megawatts of assets this year that would've otherwise contributed around 2 billion.

<unk> 2 billion in F 'twenty sites.

Although the EBITDA contribution from the asset sale proceeds will be even greater in future years as the capital is redeployed.

Lastly, we also anticipate being conservative on our assumptions and other factors twenty-five guidance, whilst the better trends have been better. This year wasn't surprised several years. We're also focused on delivering on our promises to investors.

Vishali: Project Surya, which is implemented in partnership with UNEP. Nearly 210 women have completed their training as renewable energy technicians who earlier used to work in the very hard soil farming area in Gujarat. The 9th edition of Gift Forms Campaign 2023 has benefited around 200,000 people.

With that we would be happy to answer any questions. Thank you.

Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to the earn outs.

If you wish to cancel your request. Please press Star then two.

If you're on speakerphone, please pick up the handset to ask a question.

Yeah.

The first question comes from Nick Hill, Mcdonalds with Fancy. Please go ahead.

Samant: Back to you. Thank you. Yes, thank you, Vishali. Turning to our annual guidance, we are raising the bottom end of our FI24 guidance range by 2% and now expect FI24 adjusted EBITDA of INR 63 to 66 billion. As we said earlier, this excludes gains on the sale of assets.

Yeah, Hi, Thank you for taking my question and good set of numbers.

My first question is on the competitive intensity good to see it come down.

But I would be keen to understand what is driving it is it the sheer quantum of options or is there. Some other reason why the competitive intensity has come down in the auctions.

Yeah.

Samant: On construction, we expect that about 1.75 gigawatts to 1.95 gigawatts will be generating revenue by the end of the year. As some of our projects have received COD extensions, this presents an opportunity to sell power on the exchange at prices often substantially higher than the PPA tariff. With regard to our FY25 guidance, we anticipate sharing our outlook with investors during our fourth-quarter FY24 earnings call. We would remind investors that we sold 400 megawatts of assets this year that would have otherwise contributed around 2 billion, INR 2 billion, in FY25. Although the EBITDA contribution from the asset sale proceeds will be even greater in future years as the capital is redeployed.

So look I think you you kind of pose the answer on the question. It says see last year as we said about 12 gigawatts of auction to happen this year that number's 40 gigawatts.

And so I would say that most of our competitors.

Have pretty full pipelines right now as do we and therefore and because you know there are so many auctions happening you know you can always win the next one.

And so I think for all of those reasons.

The competitive intensity or they need given project on any given auction has come down by market.

Got it.

Pinpoint in Ohio is on the module price crash, which would benefit us so wanted to understand how much of the pipeline is the module price loss and what how much of a balance, but we'll be able to gain from these are low margin basis.

So you should assume that everything that we've been buying in the last three months.

And beyond will be benefiting from these oil prices.

Samant: Lastly, we also anticipate being conservative on our weather assumptions in our FY25 guidance. Whilst the weather trends have been better this year versus the prior several years, we are also focused on delivering on our promises to investors. With that, we will be happy to answer any questions. Thank you. Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then 2. If you are on a speakerphone, please pick up the handset to ask your question. The first question comes from Nikhil Najana on Berenstein.

And therefore, the actually if I were to take a step back.

Vision to postpone execution of projects in the last financial year.

Well actually because module peso that time with 26 to 28 cents was actually quite on the money.

Over the course of the last 12 months multitasking have fallen so much and so we're able to now commission these solar projects.

Does that sort of that cost at all.

You know significantly lower 20% to 30% lower in some cases compared to what they would have been had we done them earlier.

So yes from this point to from the last I would say three to four months in fact, even all the modules that you're buying now.

With lower module prices.

So would it be fair to assume most of the capacity coming back into effect when he five should benefit.

Nikhil Najana: Please go ahead. Thank you for taking my question and a good set of numbers. My first question is on competitive intensity. Good to see it come down, but I would be keen to understand what is driving it. Is it the sheer quantum of options, or is there some other reason why the competitive intensity has come down in the options? Yeah, Nikhil. Hi.

Please.

Yes, absolutely.

Got it.

So my visit later point, then so then renews one module manufacturing plant.

How is that creating and how is that being able to compete against us live in sync of what peak volume places.

Because as you know there is supposed to below 40% import duty. So that takes down 11 cents up to whatever close to succeed in the health claims and that is not very dissimilar to what the cost of this very important modules.

Samant: So look, I think you kind of posed the answer in the question itself. You see, last year, as we said, about 12 gigawatts of auctions took place. This year, that number is 40 gigawatts. I would say that most of our competitors have pretty full pipelines right now, as do we. And because there are so many auctions happening, you can always win the next one. And so, for all of those reasons, I think the competitive intensity on any given project, on any given auction, has come down quite markedly. Correspondent.

Pay that 25% be city on a much lower number the imported price of module sales is about.

Close to about five and a half cents. So 25% on that is do you want them to have a little bit less than that.

So it gets you to get to the cells at about seven.

Here in India, and then the conversion price takes you up to about 15 16 pens, they're pretty much at the same level as you would be if you were buying modules from China.

Now also keep in mind. The fact that element was supposed to come in from this your first April.

Samant: The second point that I had was about the module price crash, which would benefit us. So I wanted to understand how much of the pipeline is the module price loss and how much of the balance part we'll be able to gain from these low module prices. So you should assume that everything that we've been buying in the last three months and beyond will benefit from these lower prices. And therefore, actually, if I were to take a step back, you know, our decision to postpone the execution of projects in the last financial year was actually because Model Prices, at that time, were 26 to 28 cents, was actually quite on the money, because over the course of the last 12 months, Model Prices have fallen so much And so we are able to now commission these solar projects at tariffs, at costs that are, you know, significantly lower, 20 to 30% lower in some cases, compared to what they would have been had we done them earlier.

So any projects that are not grandfathered.

Have to we'll have to.

By domestic volumes going forward.

And therefore are you also looking.

So China are important modules along with it.

Got it.

Are you also looking to exports of modules like some peers are.

This is our first priority is to supply modules to ourselves. So we will look at first doing that.

And secondly to the extent that we havent workflow module, which we probably will have some amount this year.

<unk> certainly looked at selling that in whichever market gives us the best return now keep in mind, one more thing that will also have a cell plant getting commission fairly soon.

And that allows us to sell into the domestic Dci market.

There's also the status at higher because those acquired salesmen in India as well and so therefore, we could do either of the two we could sell projects a bit sales made in India and to the PCI market.

The higher that is all we could sell overseas.

Now we haven't we haven't.

To be honest with you we are not sort of a.

Giving any sort of guidance on that right now.

Obviously, we want to prioritize that one requirements.

Samant: So yes, from this point to the last, I would say, three to four months, in fact, even all the modules that you're buying now are with lower Model Prices. So would it be fair to assume most of the capacity coming up in FY25 should benefit from this? Yes, absolutely. The Renew's own module manufacturing plant, how is that faring, and how is it being able to compete against this 11 cent award peak module price? Because, as you know, there is, first of all, a 40% import duty. So that takes that 11 cents up to, close to, 15 and a half cents.

And is this month a new one last question from my side is then on the pipeline side, though I saw some billion dollars because people are they're good to see part of the commission.

But wanted to understand what is the reason that beats its transmission incrementally, becoming a bottleneck as you seem to be hitting in the presentation of all the commissioning of future renewable capacity there in India.

So, yes, I I think bundle among other things that have happened. This year is that because the amount of the newbuild is now crossing certain levels. The grid manager, which is really the central has to electricity authority has decided to really become a lot more careful about giving connectivity a pool.

Samant: And that is not very dissimilar to what the cost is if you import modules and pay the 25% BCD on a much lower number; the imported price of modules for cells is close to about five and a half cents. So 25% on that is maybe one and a half, a little bit less than that. So, it gets you sales at about 7 cents here in India, and then the conversion price takes you up to about 15, 16 cents.

Ruth and commissioning approvals to new renewable energy projects. So these processes off commissioning therefore are taking longer than they were taking earlier and that is why you perhaps see that the amount of commissioning. This year in the RV sector is at this point of the year lower than what would have been expected.

For the industry as a whole largely because of these new connectivity and commissioning requirement.

Samant: You're pretty much at the same level as you would be if you were buying modules from China. Now, also keep in mind the fact that ALMM was supposed to come in this year, 1st April. So any projects that were not Grand Fathers.

That also ought to be now a.

Get to the highest standard Baidu baidu.

But the good vantages and.

And I think that's fair, that's where you know it's a perfectly legitimate team for them to do but what that has meant is that the earlier process. There. Once the project was ready we could turn it on and get it connected to the grid within a matter of two T. D's that process now is taking a lot longer its thinking as long as four to six weeks, though and that in some ways.

Samant: We'll have to, we'll have to, the biodomestic model is going forward. And therefore, are you also looking for China or important modules in that? Got it. Are you also looking to export modules like from PSR?

Is is delayed the connectors the delay in the commissioning of new projects for everybody not just for US. The second thing that is happening is that the connectivity of who listen to the grid and I may be getting a little technical here.

Samant: Listen, we are, our first priority is to supply modules to ourselves, so we will look at first doing that. And secondly, to the extent that we have any overflow modules, which we probably will have some amount of this year, we will certainly look at selling those in whichever market gives us the best return. Now, keep in mind one more thing, that we'll also have a cell plant getting commissioned fairly soon, and that allows us to sell into the domestic DCR market, where the tariffs are higher because those require cells made in India as well. And so, therefore, we could do either of the two.

And also taking a lot longer than they used to take early up because now, especially for these complex projects without getting commission for the first time or getting any connected to the grid for the first time the grid managers want us to do.

At very high standards.

Richard quite very extensive modeling of how the whole plans would actually.

Operate under very many different circumstances and situations.

And that Baidu is also a very big learning for us because we have now gone through this process both for RPC and for peak power.

And therefore, the only something that is also just ask yourself why does this connectivity process actually imply in India, and so you know chop that up to another oh.

Samant: We could sell projects with cells made in India on the DCR market at a higher tariff, or we could sell them overseas. Now we haven't, we haven't, to be honest with you, we are not sort of giving any sort of guidance on that right now because, obviously, we want to prioritize our own requirements. I need one last question from my side, on the pipeline side, I saw some delay in the RTC project, good to see part of a commission, but wanted to understand why and, B, is transmission gradually becoming a bottleneck as you seem to be hinting in the presentation for commissioning future renewable capacity in India. So yes, I think one of the things that have happened this year is that because the amount of renewable energy is now crossing certain levels, the grid manager, which is really the Central Electricity Authority, has decided to be a lot more careful about giving connectivity approvals and commissioning approvals to new renewable energy projects.

Sort of.

A strength that we now have on these complex projects, we've gone through that and frankly, it's taken us almost three to four months to get some of these connectivity up to what we used to take literally a month earlier. So all of that does that he caused some delays in connections to the grid and that is why you see that.

We are now over the next month or so gonna be connecting a lot of projects into the pit.

That's a month.

Thanks.

Yeah. So Mike you May also want to talk a little bit about the opportunity to sell some of the power while we're waiting for those cod's.

Yeah, So what's happening one of the things that is happening is that.

Because now the commissioning timeline has got extended or what the what will be allowed to do is to sell.

At the moment the plant is ready we can sell that bothered into the merchant market. While we are with commissioning the final commissioning approvals and because that process can be up to a couple of months long for those couple of months, we are able to their forget the merchant that is rather than the PPA that is.

Samant: So these processes of commissioning, therefore, are taking longer than they were taking earlier. And that is why you'll perhaps see that the amount of commissioning this year in the RE sector is, at this point in the year, lower than what would have been expected for the industry as a whole, largely because of these new connectivity and commissioning requirements that are thought to be now kept as a higher standard by the grid banners. And I think that's fair. That's, you know, it's a perfectly legitimate thing for them to do.

And that as you know and the number of cases is almost double the PPA does.

So for the new products the decommissioning, we're actually able to realize given this new process that has now been in pools.

As I said for good reasons, but that is also therefore, allowing us to generate higher profitability for a certain period of time by selling into the merchant market.

Understood very clear. Thank you so much for answering my questions.

The next question comes from Justin Clare with Roth M. Can please go ahead.

Samant: But what that has meant is that the earlier process, where once the project was ready, we could turn it on and get it connected to the grid within a matter of two, three days. That process is now taking a lot longer. It's taking as long as four to six weeks now.

Okay.

Yeah, Hi, Thanks for taking my question.

So first off here you indicated that you expect to sign the Ppas for the five nine gigawatts of capacity that you wanted auction is year to date in fiscal 'twenty four.

Samant: And that, in some ways, is delaying the commissioning of new projects for everybody, not just for us. The second thing that is happening is that the connectivity approvals into the grid, and I may be getting a little technical here, are also taking a lot longer than they used to take earlier because now, especially for these complex projects, which are getting commissioned for the first time or getting connected to the grid for the first time, the grid managers want us to meet very high standards, which require very extensive modeling of how the whole plant would actually operate under very many different circumstances and situations And that, by the way, is also a very big learning experience for us because we have now gone through this process both for RTC and for peak power. And therefore, we are the only company that has gone through this process of what this connectivity process actually imply and entail. And so, you can chalk that up to another sort of strength that we now have on these complex projects. We've gone through that.

In fiscal 'twenty, five and then the commissioning for those projects as expected in FY.

<unk> 26 to 29.

I was wondering if you could give us just a little bit better sense as to.

When those projects might be completed is it.

And we expect it to be even over those years or is it likely to be.

More of the capacity in fiscal 'twenty six 'twenty seven.

And then how should we think about the timelines for projects. After you sign a P. P E and is there more time available if it's a complex.

Project.

Yeah, Justin Hello.

So first of all on your first question of when each of these causes decommission it partly depends on lender Ppas signed because as you know the clock starts ticking from that point on and typically for complex projects. We have two years of Mr. Execute projects, but also to some extent depends on vendor transmission substations will get ready because.

Samant: And frankly, it's taken us almost three to four months to get some of these connectivity approvals, which used to take literally a month earlier. So all of that has actually caused some delays in connections to the grid. And that is why you see that we are now, in the next month or so, going to be connecting a lot of projects. Now, Samant, you may want to talk a little bit about the opportunity to pre-sell some of the power while we're waiting for those COGs. Yes, so one of the things that is happening is that now that this commissioning timeline has been extended, what we are being allowed to do is to sell, you know, the moment the plant is ready, we can sell the power into the merchant market while we await commissioning, the final commissioning approvals.

Obviously, we assume that these that there's somebody availability that is provided to us by the by the transmission operator that certain substations in copper at certain points in time. So we made those assumptions and we could get connectivity into the substation.

Substations don't necessarily come up you know on the time specified them do get delayed and some of them. In fact are going to be getting there even beyond the two year time period that were given to commission the project in which case the timeline for US does get extended to be aligned with the commissioning timeline of the tax season Cup season.

So it's a little bit variable, therefore, and I I I hesitate to give you an answer on this what we will do all of our centers over the next few months. We will you know as we think through this a little bit more and as we get more clarity on the Ppas I mean, Dave we there.

Samant: And because that process can be up to a couple of months long, for those couple of months, we are able to therefore get the merchant tariff rather than the PPA tariff. And that, as you know, in a number of cases is almost double the PPA tariff. So for the new projects that we are commissioning, we are actually able to realize, given this new process that has now been imposed, as I said, for good reasons, but that is also, therefore, allowing us to generate higher profitability for a certain period of time by selling this with great care. Thank you so much for answering my question. The next question comes from Justin Clare with the Roth MKM. Please go ahead. Yeah, hi.

We'll be able to get a formal estimate and.

And we will try to share that with you perhaps in the next earnings call a few months down the road.

So what I'm, saying.

Yeah, Yeah, Yeah, if you remember Justin that you know.

Those are not in our guidance or projections right. So as we rightly mentioned as we sign those Ppas then will provide will have more confidence in the delivery schedules et cetera, who will provide more granularity around that.

Right right Okay. Okay. Thanks.

And then so I guess just given the increase in the auctions that we've seen significantly more volume here.

How are you thinking about your capacity your annual capacity to build I think in the past you've talked about two five to three gigawatts a year is that the number that we should be thinking about today or is it possible that you would look to.

Justin Clare: Thanks for taking our questions. So, first off, you indicated that you expect to sign the PPAs for the 5.9 gigawatts of capacity that you won at auction year-to-date in fiscal 24, in fiscal 25. And then the commissioning of those projects is expected in, I think, FY 26 to 29. I was wondering if you could give us just a little bit better sense as to when those projects might be completed. Is it – can we expect it to be even over those years, or is it likely to be, you know, more of the capacity in fiscal 26 and 27? And then how should we think about the timelines for projects after you sign a PPA? And is there more time available if it's a complex project? Yeah, Justin. Hello.

That number given the opportunity.

Yeah. So you know the amount of megawatts that we can execute on the euro as is dependent on a few different factors of course, the availability of ppas as manav doors, but it also depends as you know on capital availability and funding capability execution capability and so on.

So I would say that you know two and a half to three gigawatts is still a fair number to assume.

And of course, you know.

Given you added maybe more than that a little bit less than that depending on you know transformation awareness transmissions coming up what did you see all these like for different projects and so on so there will be some variability around that but.

But that is the fed photos I'm seemed to make.

Also want what happens often is that as we see the number of bids it'll continue to stay at a high level and the attractiveness of those beds continuing to be fairly good.

Samant: So, first of all, on your first question of when these projects should be commissioned, it partly depends on when the PPAs are signed because, as you know, the clock starts ticking from that point on. And typically, for complex projects, we have two years at least to execute them. But it also, to some extent, depends on when the transmission substations will get ready because, obviously, we assume, based on the availability that is provided to us by the transmission operator, that certain substations will come online at certain points in time. So, we make those assumptions, and we can get connectivity into those substations. Now, substations don't necessarily come up at the time specified. Some of them do get delayed.

We will try to see how we can ramp up our execution capability over over time, but.

But that is something that as I said you can have you know we'd have to really do some work on I think for the time be making that assumption that the number that you talked about I think is a fair assumption to make.

Okay got it I appreciate it thank you.

Yeah.

The next question comes from Puneet Italian with HSBC. Please go ahead.

Yeah.

Yeah. Thank you so much for the opportunity and congrats on good performance. My first question is on your Capex guidance given the falling prices are are you inclined to lower your capex guidance or should we assume this is a still a realistic number.

What do you want to take that.

Sure Juan <unk>, who you know, while we are likely to see some benefits accruing from that we haven't factored that into the guidance yes.

Samant: And some of them, in fact, are going to be getting ready beyond the two-year time period that we're given to commission the project, in which case the timeline for us does get extended to be aligned with the commissioning timeline of the transmission substation. So, it's a little bit variable, therefore, and I hesitate to give you an answer on that. What we will do, however, Justin, is over the next few months, we will, you know, as we think through this a little bit more, and as we get more clarity on the PPA signing dates, we will be able to get a firmer estimate, and we will try to share that with you perhaps in the next earnings call a few months from now. Just remember, Justin, that those are not in our guidance or projections, right? So, as Samant rightly mentioned, as we sign those PPAs, then we'll have more confidence in the delivery schedules, etc., and we'll provide more granularity. Right, right?

We would like to actually realize those benefits the whole the big thing.

Okay.

And any indication of how much could that benefit be.

And any indication of how much could that benefit be.

So the bet that that benefit, though depending on you know where the places to eat while you know we got to execute.

On these projects.

Could we be in a range and we can work it out and you know we can share it took me to certain assumptions.

Okay.

The capex for the entire balance remaining capacity tied up or will that also be tied up over a period of time.

[noise] boom for the large part of it.

Basically we're just cutting boom execution, which is the peak body August because theyre in the pipeline that we're executing of solar and wind projects on B to B I D.

A project that is likely tied up.

We are talking of somewhere in the range of around 10, and a half to 11 gigawatt of capacity beyond that if you have to be tied up.

Okay, and then the Husky go or you need to be additional to what do you think the houses that's looking like yeah, but whatever we are currently constructing is tied up.

Whatever it is.

Samant: Okay, okay, thanks. And then, so I guess just given the increase in the auctions that we've seen, you know, significantly more volume here, how are you thinking about your capacity, your annual capacity to build? I think in the past you've talked about 2.5 to 3 gigawatts a year. Is that the number that we should be thinking about today, or is it possible that you would look to increase that number given the opportunity? Yes, so you know the amount of megawatts that we can produce in a year is dependent on a few different factors. Of course, the availability of PPAs is one of those.

In FY 'twenty tie all.

For that Oh.

In the process of tying it up right now.

Okay and did I hear it right that this quarter alone you might be commissioning more than I could go on.

Yeah, because I think as Mike mentioned earlier that you don't have all the capacity is fully connected and ready for commissioning. It says you know what I think will come close.

Once we get that then it would become mission. So of the 198 hundred is already commissioned and another gigawatt is ready for commissioning and keeps them coming through in the next.

Two weeks.

Anthony.

As a reminder, yeah, just as a reminder.

Samant: But it also depends, as you know, on capital availability and funding capability, on execution capability, and so on. So I would say that, you know, two and a half to three gigawatts is still a fair number to assume. And of course, in a given year, it may be more than that or a little bit less than that, depending on, you know, transmission, when transmission is coming up, what the CODs are like for different projects, and so on. So there will be some variability around that, but that is a fair assumption to make. I think also what will happen, Justin, is that as we see the number of bids, you know, continue to stay at a high level and the attractiveness of those bids continue to be fairly good, we will try to see how we can ramp up our execution capability over time. But that is something that, as I said, we'll have to really do some work on. I think for the time being, making that assumption, that number that you talked about, I think it is a fair assumption. Okay. God, I appreciate it.

About 1.9, Gigawatts will actually be generating revenue.

By year end fiscal year 2024.

Yeah.

And secondly, you're one 5.9 gigawatt of our T cell projects year to date.

All these how much you guys have been signed so far.

Right now, putting 400 megawatt ppas signed none of the project.

Uh huh.

And the rest of it is currently under discussion yet.

And this is the total capacity.

It must be contracted capacity.

This will be the audio portion of the capacity.

In some cases, where it is I can see for example, a hybrid type project there.

Then a.

The contracted capacity would be lesser extent.

Understood.

And lastly, if you can give some color on what's.

What's happening on the elements around 10.

The Ministry is put it on the bands or does it mean for you.

So puneet hi, Yeah. So look I think the government is still sort of thinking through exactly what they are in I'm, sorry that needs to be they have come out of them. It is not such a law, which.

Samant: Thank you. The next question comes from Puneet Kotali with HSBC. Please go ahead. Thank you so much for the opportunity and congratulations on your good performance.

Basically that they were going to be certainly.

Exceptions.

Puneet Kotali: My first question is on your CAPEX guidance given the fall in module prices. Are you inclined to lower your CAPEX guidance, or should we assume this is still a realistic option? Kailash, would you want to take that? Shatman.

But we have not taken it back and Theyre still sort of malaise around what exactly they would like to have.

Because it obviously competing interests here.

So I think look we just have to be patient and wait for them to finally decide what they want to do.

Kailash: Yeah, Puneet. So, you know, while we are likely to see some benefits accruing from that, we haven't factored that into the guidance yet, you know, because we would like to actually, you know, realize those benefits before we begin. Okay, and any indication of how much that benefit could be? So that benefit, you know, depending on, you know, where the prices stay while, you know, we are executing on these projects, could vary in a range and, you know, we can work it out and, you know, we can share with you based on certain assumptions. And has the capex for the entire balance remaining capacity been tied up, or will that also be tied up over a period of time? So for the large part of the capacity which is currently in execution, which is the peak power, the RTC project, and the pipeline that we're executing of solar and wind projects on B2B and SECCHI projects, that is largely tied up, which will be a total of somewhere in the range of around 10.5 For capacity beyond that, it's yet to be tied up. Sorry 10 and 1 kgs before; you mean 2 kgs... additional over the 18.5 kgs, right?

So I can't give you any guidance unfortunately on it but.

But as of now eight of them are supposed to come in from placebo.

Okay. So in case no further announcement comes from them in the street element.

They are different different persistence.

That's right, but the reality is that there will be something that will come out soon so I think we just have to wait for it.

But look obviously we are in.

Both a developer and as a matter of fact, we are closely in touch with the government on this whole issue.

Now if they allow some relaxation of element to that extent, our IDP business is game and to the extent that they don't allow the relaxation to that extent our manufacturing side of the game. So I think we're pretty hedged on the situation at this point in time.

Okay.

And then lastly in front of me the.

Solar Pls this quarters loss versus.

The last year in the same period.

Is there any show under edition sides of the same.

No police I don't think we can make come to any conclusions from just one quarter. I think you have to look at the whole year before we can come to a new point of view. So I think one quarter you have these variations frankly.

Okay.

Okay Fair enough. That's all for me so thank you so much.

Yeah.

Once again, if you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced.

The next question comes from my heat mentally with Mizuho. Please go ahead.

Hey.

Kailash: Yes. So whatever we are currently constructing is tied up. Whatever is to be constructed in FY'25. For that, we are in the process of tying it up right now.

Good evening and good amongst others.

Thanks for the questions just a quick housekeeping on the guidance in Q4 FY 'twenty for could you just confirm that that's mainly due to the much in sales before a final image thing you talked about right or is there anything else on the guidance increase yeah.

Kailash: And did I hear you right that this quarter alone you might be commissioning more than a gigawatt? Yeah, because as Suman mentioned earlier, all the capacity is fully erected and ready for commissioning. It's just waiting for some grovals, and once we get that, then it will be commissioned. So of the 1.9, 800 is already commissioned, and another gigawatt is ready for commissioning. It will be commissioned in the next few weeks. And Puneet, just as a reminder, yeah, just Puneet, as a reminder, about 1.9 gigawatts will actually be generating revenue by year-end, fiscal year 2021. Yeah, understood. And secondly, you have won 5.9 gigawatts of additional projects year to date. Of these, how many TPS have been signed so far? Right now, Puneet, 400 MW PPA is signed.

Who on the Guy who didn't didn't leave the yeah, yeah, yeah yeah.

So on the guidance and three the Levi's at getting closer to the end of the fiscal yeah listen there's more visibility on what the.

Talking again.

Given the experience that we're having on the resource side and on the expense side Board.

Because it has very nice you don't realize the guidance. So you now add goes to you know the reality reality, which really actually pan out. So that is why they have driven the increase.

The Guy who did not really anything to do with Mike Chinn.

Yes.

Yeah Yeah.

Okay.

Kailash: That is the project with GVML, and the rest of it is currently under discussion. And is this the total capacity, or is it the contracted capacity? So this will be the RE portion of the capacity; in some cases, where it is RTC2 for example or a hybrid type project, then the contractual capacity would be less to that extent. That's helpful. And lastly, if you can, you know, give some color on what's happening on the ALMM front and whether the Ministry has put it on abeyance. What does it mean for you? So, look, I think the government is still sort of thinking through exactly what the A&M strategy needs to be. We came out with an original circular which said basically that there were going to be certain exceptions, but we have now taken it back, and they're still sort of mulling around what exactly they would like to have because there are obviously competing interests here.

The incremental accretion from months.

Most of the markets next year.

I'm, sorry can you say that again the language, but not.

Blake live.

Oh.

Hello.

Hi.

Yeah.

Your line is not yet.

Got it.

Yeah, Yeah go ahead Barry.

Yeah.

Oh, sorry, yes.

No.

I didn't know how to think about too much and.

So the incremental EBITDA from selling problem in that much of the market.

The next year.

Yes.

So guidance on merchant market next year.

Is that the question right.

Yeah, just the incremental EBITDA generation, you kind of talked about the opportunities of selling into much in market spreads I'm just trying to think through how does that impact the operations in Q4 or next year.

Yeah. So look I think that to the extent that a so so first of all as you know we keep our exposure to merchant you know somewhat within the 10% to 15% level of our total portfolio now what's happening is that some of these opportunities maybe unable to intermittently thought about initially for two or three months.

Kailash: So I think, look, we just have to be patient and wait for them to finally decide what they want to do. So I can't give you any guidance, unfortunately, on that. But as of now, ALMM is supposed to come in from Thursday. Okay, so in case no further announcement comes from the Ministry, ALMM will be effective from 1st April. That's right.

Into the merchant market before we sell it into the P. P. It those are the opportunities that we're trying to capitalize on wherever they are wherever.

Samant: But the reality is that there will be something that comes out soon, so I think we just have to wait for it. But look, obviously, as both a developer and a manufacturer, we are closely in touch with the government on this whole issue. Now, if they allow some relaxation of the ALMM rules, to that extent, our ITP business will benefit. And to the extent that they don't allow that relaxation, to that extent, our manufacturing side will.

But since we haven't been giving you guidance for.

What the base case would be for next year.

So how they have to sort of give you a sense of what the extra revenue might be at a much.

For next year.

I think we just put all that together then and then give you guys. Some sense of all of that.

As we've said in the end of June.

On when we do the for the full year results.

And Mohit <unk>.

A little bit to that as well one thing that way.

Samant: So I think we're pretty hedged on this situation at this point. And then lastly, if I may, you know, the solar TLS this quarter is a little lower versus the last year, the same period. Is there an issue on the irradiation side this time? No, Puneet, I don't think we can come to any conclusions from just one quarter.

We obviously are flagging is that as we give guidance, we will want to start the year with conservative expectations right. So.

What we're saying is that there is a very.

Could be a significant opportunity that we will likely take a more conservative view with our initial guidance there.

Got you and then one question on the manufacturing front.

Samant: I think we have to look at the whole year before we can come to any conclusions. So I think one quarter you have these variations. Okay, fair enough. That's all from me, sir. Thank you so much.

Your lines of writing them on those buckets I'm not shrunk right.

India.

Operator: Once again, if you wish to ask a question, please press star and then 1 on your telephone and wait for your name to be announced. The next question comes from Mahi Mandloy with Mizzou Health. Please go ahead. Hey, good evening, and good morning to everyone.

And we keep hearing increased or supply them to talk on the site.

Sure.

Right.

One minute.

Hum.

Sounds interesting.

Sure.

Mahi Mandloy: Thanks for the questions. Just a quick housekeeping on the guidance increase for FY24. Can you just confirm that's mainly due to the merchant fail before final commissioning you talked about, right? Or is there anything else on the guidance increase? Through on the guidance and please, yeah, yeah, yeah. On the guidance increase, as we are getting closer to the end of the fiscal year, obviously, there is more visibility on what we are tracking again, and given the experience that we are having on the resource side and on the expense side both, which is helping us revise the guidance as close to the reality that will actually pan out. So that is what has driven the increase in the guidance. It does not really have anything to do with merchant sales as of now. Thank you for watching, the incremental input and generation from Merck and involving Merck. I'm sorry, can you say that again? The line is a bit not very clear. All right, Luke. All right. Yeah, the line is not working, unfortunately.

Quite a few to upgrade your lines.

Okay.

Yeah, So look.

The situation is that.

The module lines require relatively little change to move them from mono PERC to dot com.

Okay, and it's something that can be fairly quickly.

Without significant capex.

So that is something that we will be that we.

We'll be looking at doing over the course of the coming year.

As far as our cell line is concerned that's a line right now is a mono PERC cell line and our centers of course that mono PERC will continue for some more time.

And so to that extent, we will continue to offer just line you know as a multiple clients.

Keep in mind, it's also only two and a half gigawatts ourselves with a six.

<unk> gigawatts of modules.

And as as we are as we are.

You know as the market moves more to top gone then we will consider adding if we decided to add more specialized which we'd have to wait and see than those we could move towards stopped call, but at this point, we will continue to update the mono PERC line after two and a half gigawatts of says.

Kailash: Yeah, yeah, go ahead, Mahi. Any guidance on how to think about merchants, incrementally, from selling power in the merchant market? Next year? So guidance on the merchant market next year. Is that the question, Lane?

And the modules will keep two and a half to accommodate the mono PERC line on the balance we will move as I said at negligible cost to top com.

Got it appreciate the color and I'll take the restaurants I take it.

Okay.

That does conclude our Q&A session and well conclude our conference for today. Thank.

Samant: Yeah, there's an incremental EBITDA generation. You kind of talked about the opportunity to sell in the merchant markets, right? So just trying to think through how that will impact the operations in Q4 or next year. Yes, so look, I think that to the extent that, first of all, as you know, we keep our exposure to merchants somewhat within the 10 to 15% level of our total portfolio. Now what's happening is that some of these opportunities where we are able to intermittently, sort of, or initially for two or three months sell power into the merchant market before we sell it into the PPA, those are opportunities that we're trying to capitalize on wherever they occur. But since we haven't yet given you guidance for what the base case would be for next year, it's very hard to sort of give you a sense of what the extra revenue might be out of merchant for next year.

Thank you for participating you may now disconnect.

Okay.

Okay.

[music].

Uh huh.

[music].

Samant: I think we'll just put all that together and then give you guys some sense of all of that, as we said on the June call when we do the full year. And Maheep, to add a little bit to that as well, one thing that we obviously are flagging is that as we give guidance, we will want to start the year with conservative expectations, right? So what we're saying is that there is a very, there could be a significant opportunity, but we will likely take a more conservative view with our initial guidance. One question on the manufacturing front, you're lying to write no monoblock, if I'm not wrong, right, in India, and we keep getting increased oversupply on the top-down side of growing in Asia, so any thoughts on that competitive, pressure, the unvented ALMM, or concentrate?

Uh huh.

Yeah.

Yeah.

Yeah.

[music].

Samant: And next year, that would require you to upgrade your lines or anything. Yeah, so look, the situation is that the module lines require relatively little change to move them from MonoPerk to TopCon. Okay, and it's something that can be fairly quickly done without significant capping. So that is something that we will be looking at doing over the course of the coming year.

Samant: As far as our cell line is concerned, that cell line right now is a monoperf cell line, and our sense is, of course, that monoperf will continue for some more time. And so to that extent, we will continue to operate this line as a monoperf line. But keep in mind, it's also only 2 12 gigawatts of cells versus 6 12 gigawatts of modules. And as the market moves more to Topcon, then we will consider adding, if we decide to add more cell lines, which we have to wait and see, then those we could move towards Topcon. But at this point, we will continue to operate the monopower client of 2.5 gigawatts of cells. And the modules, we'll keep two and a half to accommodate the monoport line, and the balance we will move, as I said, at negligible cost to Topcorp.

Mahi Mandloy: I appreciate it. I'll take a rest. That does conclude our Q&A session and will conclude our conference for today. Thank you for participating. You may now disconnect. www.renewenergy.com. Thanks for watching!