Q1 2025 ReNew Energy Global PLC Earnings Call

Yeah.

Okay.

Okay.

[music].

Speaker Change: Thank you for standing by and welcome to the New one you ask why 25 earnings report.

Operator: Thank you for standing by and welcome to the Renew 1Q FY25 Earnings Report.

Operator: All participants are in listen-only mode. There will be a presentation, followed by a question and answer session.

Speaker Change: All participants are 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 need dressers Guy he thought that the number one on your telephone keypad I would now like to hand, the conference over to Mr. Nathan Judge. Please go ahead.

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

Operator: I would now like to hand the conference over to Mr. Nathan Judge.

Operator: Please go ahead.

Nathan Judge: Yes, Thank you and good morning, everyone and thank you for joining US we put out a press release last night announcing our results for the fiscal year first quarter 'twenty 25, ending June 32024, and a copy of the release and the earnings presentation are available on.

Nathan Judge: Yeah, thank you.

Nathan Judge: The investors relations section of that renews website at Www dot renewed dotcom.

Nathan Judge: And good morning, everyone.

Speaker Change: With me today are smart seen her <unk> founder chairman and CEO Karla extra Suwannee our CFO.

Nathan Judge: And thank you for joining us.

Nathan Judge: Michelle.

Speaker Change: Saint <unk> co founder and chairperson of sustainability, and Anthony Shahi, SVP, corporate finance and Investor Relations.

Nathan Judge: We put out our press release last night, announcing our results of the fiscal year first quarter 2025, ending June 30, 2024. And a copy of the release and the earnings presentation are available on the Investors Relations section of the Renews website at www.renew.com.

Speaker Change: After the repaired excuse me after the prepared remarks, which we expect will take a half hour. We will open the call for up for questions. Please note. Our safe Harbor statements are contained within our press release presentation materials and materials available on our website.

Speaker Change: 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, we furnished in our 6K and the presentation on our website for a more complete description.

Speaker Change: Also contained in our press release presentation materials and annual report or certain non <unk> measures that we reconciled to the most comparable I S. L. I F. R. S measure and these reconciliations are also available on our website and the press release presentation materials, Our annual report on form 20-F.

Speaker Change: It is now my pleasure to hand, it over to <unk>, who has been recently appointed as co chair of alliance of CEO climate leaders.

Speaker Change: Yeah. Thank you Nathan.

Nathan Judge: With me today are Sumant Sinha, Founder, Chairman and CEO, Kailash Vaswani, our CFO.

Speaker Change: Good morning, everyone and glad to have you all on our earnings are gone.

Dave: After Dave <unk>.

Speaker Change: Last quarter, we had a slightly different format, maybe talked about our long term outlook and our vision.

Nathan Judge: Vaishali Nigam Sinha, Co-Founder and Chairperson of Sustainability and Ananay Shahi, SVP, Corporate Finance and Investor Relations.

Speaker Change: And thank all of our investors and stakeholders, who appreciated the effort and clarity on the long term vision.

Nathan Judge: After the prepared, excuse me, after the prepared remarks, which we expect will take a half hour.

Nathan Judge: We'll open the call for questions.

Speaker Change: Turning to page five of the presentation last year, we kick started our journey of doubling of the operating portfolio by 2029 by many more than eight gigawatts in auctions of these wins, we have already converted.

Nathan Judge: Please note, our Safe Harbor statements are contained with our press release, presentation materials, and materials available on our website. These statements are important and integral to all our remarks.

Speaker Change: One two gigawatts into P. P S.

With the majority expected to be converted over the next few months.

Nathan Judge: There are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward looking statements.

We pursued this group we will continue to be focused on shareholder value creation accessing only the cheapest sources of capital and exploring avenues, there and the returns are materially above our cost of capital.

Nathan Judge: So we encourage you to review the press release, ReFurnish, NR6K, and the presentation on our website for a more complete description.

Speaker Change: A recent auction wins I'd expect it to generate returns higher than the historical average and we expect that trend to continue given the robustness of the auction market.

Speaker Change: We also recently filed a annual 20-F for fiscal 'twenty 'twenty four.

Speaker Change: We are in compliance with Sox requirements.

Nathan Judge: Also contained in our press release, presentation materials, and annual report are certain non-IFRS measures that we reconcile to the most comparable IFRS measure, and these reconciliations are also available on our website.

Speaker Change: In addition, we had also stead fast in outer years your commitments and our debut integrated report is a testament to the standards that we benchmark ourselves against.

Nathan Judge: In the press release, presentation materials, our annual report, and our Form 20-F.

Speaker Change: In fiscal 2025, we expect several of the unsigned P. P. S. B site, providing us with an even clearer path beyond the current 15, six gigawatt committed portfolio.

Speaker Change: Along with full clarity on execution time lines.

Speaker Change: Furthermore, given the terms at which we have secured the pipeline.

Speaker Change: Lower module prices.

<unk> security as well as given our conservator of assumptions, we expect to generate better returns on the current pipeline of projects and the ones that we have executed to date.

Speaker Change: Moreover, we will continue to be disciplined and highly selective in our approach towards building for future growth and we'll look to secure projects with a lower risk and higher return profile.

Speaker Change: We reiterate our 525 guidance as well as our longer term outlook.

Speaker Change: We have already commissioned almost 500 megawatts of capacity in this financial year and are well advanced on many other construction projects.

Finally safety is of utmost priority to us and it has been deeply embedded in our culture since day one.

Speaker Change: As a testament to that commitment and focus we were recently awarded a five star safety rating by the British Safety Council for one of our projects.

Speaker Change: Turning to page seven we have come a long way in 12 years by constructing 10 gigawatts.

Nathan Judge: It is now my pleasure to hand it over to Sumant, who has been recently appointed as a co-chair of Alliance.

Nathan Judge: CEO, Climate Leader.

Speaker Change: What took US 12 years for the first 10, Gigawatts, we intend to repeat in less than five years for the next 10 Gigawatts.

Speaker Change: There had been some learnings that we intend to implement in our future portfolio.

Speaker Change: Firstly on pieces of having an in house painful EPC and O&M and digital platforms has provided us with significant differentiation vis vis others.

Speaker Change: Maybe not only save on costs, but the turnaround time for our projects is lower than most peers.

Speaker Change: Do keep in mind that win which is a lot harder to execute is approximately 50% of our delivered megawatts.

Speaker Change: Which means that we have done so with a higher degree of difficulty than others, who have been largely focused on solo.

Speaker Change: Keep also in mind that when the Capex is almost double that of solar capex.

Speaker Change: So every one megawatt to win is from a capital standpoint are more than one megawatt of solar.

Speaker Change: Secondly, when we took the decision to get into manufacturing we received some strong feedback about it.

Speaker Change: Today, It has become a significant competitive advantage for us.

Speaker Change: As the government of India has implemented L. M. M. We have a secure source of modules.

Speaker Change: The availability of modules at the right cost is becoming a key differentiator in the Indian renewables landscape.

Speaker Change: Finally on capital discipline, as well as our ability to access the cheapest and most of the diverse sources of capital both for equity and debt.

Speaker Change: Patriots us from others.

Speaker Change: Turning to page eight.

Speaker Change: Execution is a top priority and a key differentiator for us.

Speaker Change: We have executed two gigawatts of capacity over the last 12 months and reiterate that execution guidance of one 9% coupon four gigawatts for fiscal FY 'twenty five.

Speaker Change: Year to date, we have executed approximately 500 megawatts, including 400 megawatts of our solar Seki project.

Speaker Change: And I've received CODI approvals, but all of the projects that were pre C. O D. At the time of fiscal 'twenty 'twenty four earnings.

In addition, we have almost 600 megawatts of capacity that is in the advanced stages of completion and will enable us to hit our construction targets.

Speaker Change: We signed two two gigawatts of PPA during quarter, one FY 'twenty five.

Speaker Change: And continue to be optimistic about signing the majority of the Ppas from our current pipeline in the current fiscal year.

Speaker Change: Our module manufacturing continues to scale up and a module supply is now fully met from our own manufacturing facilities.

Speaker Change: GMP facility will produce more than two gigawatts of modules this year, but the wood yard facility is already operational in should be ramped up fully by the end of the.

Speaker Change: We have also started to secure external sales contracts for module supply.

Speaker Change: And we currently have contracted to sell around 600 megawatts this financial year.

Speaker Change: These contracts will ensure that our surplus capacity is put to good use and will enable a faster return on capital deployed.

Sumant Sinha: Yeah, thank you, Nathan.

Now, let me hand, it over to get us to talk more about the finance strategy. Thank you.

Speaker Change: Thank you for the month as can be seen in slide 10, we continue to deliver consistent growth since the same time last year, we have constructed over two gigawatts of projects near 24% increase in operating capacity after adjusting for 400 megawatts solar during the year. While there has been a bonus pool was an increase in operating megawatts I would like to.

Sumant Sinha: Good morning, everyone, and glad to have you all on our earnings call of today.

Speaker Change: To remind you that our EBIT on adjusted EBITDA last year benefited from lease payments the judges, which was absent in this quarter and we continue to innovate as we have long for you to see most of our a b S.

Speaker Change: Due to us and our customers arent keeping their bills on time.

Speaker Change: In addition, we sold 400 megawatts during the year, which contributed to last year's he picked up.

Speaker Change: Lastly, this quarter, we saw slightly lower pls and that impacted our revenues by about 1.3 billion INR, we have seen a recovery in the window in July which was about 10% to 15% better than last year to conclude why is there has there was almost $3 9 billion increase in revenue due to <unk>.

Hi, Omega words, unadjusted EBITDA increased by only about 200 million INR due to all these factors.

Speaker Change: Moving on to slide 11, the leverage at the operating asset levels continues to be well below the six six so sure that we have seen on a trailing 12 month basis. The leverage was around 578, excluding an under construction portfolio contributions from JV partners in the foremost CCD and our manufacturing and transmission businesses.

Speaker Change: <unk> seven X leverage is after taking in.

Speaker Change: But as the company has seen a large capacity of 650 megawatts in the last month of the previous year. What was the EBITDA contribution has been only for the linked quarter.

Amanda: The debt related to Amanda Thanks, Shannon transmission business.

Amanda: It does not contribute quite adjusted EBITDAR, but that's the way it is a competitive edge for our business.

Speaker Change: As you continue to grow our portfolio and the proportion of under construction projects as a percentage of overall portfolio should come down and will improve the ratios. In addition to on airplanes to be disciplined in our bullish towards capital deployment, let me hand, it Luckily shall lethal comments on ESG.

Kayla: Thank you Kayla.

Sumant Sinha: Last quarter we had a slightly different format where we talked about our long-term outlook and our vision.

Speaker Change: We are delighted to presenting his inaugural annual interest agent support for fiscal year 'twenty to 'twenty three 'twenty four.

Sumant Sinha: I thank all of our investors and stakeholders who appreciated the effort and clarity on the long-term vision.

Speaker Change: This is a testament to our commitment to exceeding geographical reporting standards and advancing global transparency.

Speaker Change: The release of our integrated report when you have achieved several firsts setting new benchmarks in our ESG vision performance and transparency, which I will elaborate in the coming slides.

Well I'm really integrated report has been crafted in alignment with I R. C. G. R. I S. B U N G C among others.

Speaker Change: Our financial and Nonfinancial Badger meter for fiscal year 'twenty three 'twenty four I've been externally assured by Eisai Bochy boy I'm comfortable I'm, Ian why LLC, respectively.

Sumant Sinha: Turning to page five of the presentation, last year we kickstarted our journey of doubling our operating portfolio by 2029 by winning more than eight gigawatts in auction.

Speaker Change: Turning to page 13, showcasing the key performance highlights for fiscal year 'twenty three 'twenty four.

Sumant Sinha: वाले वाले अतनी वाले के लिए सबसे सरने के लिए करेगा 2.2 gigawatts into PPAs, with the majority expected to be converted over the next few months.

Sumant Sinha: While we pursue this growth, we will continue to be focused on shareholder value creation, accessing only the cheapest sources of capital and exploring avenues wherein the returns are materially above our cost of capital. Our recent auction wins are expected to generate returns higher than the historical average, and we expect the trend to continue given the robustness of the auction market.

Sumant Sinha: We also recently filed an annual 20F for fiscal 2024, wherein we are in compliance with SOX requirements.

Speaker Change: In fiscal year 'twenty three 'twenty four venue has made significant strides almost yes, yes, well showcasing our strong commitment to safety sustainability and social responsibility.

Speaker Change: We successfully avoided $16 million of GH emissions, reflecting a 15% year on year.

Speaker Change: Pleased I'm saved 258000 metric cube photo, marking a 13% improvement IRA.

Speaker Change: Our operations sourced 41% of electricity from clean sources, and we achieved carbon neutrality for scope, one and scope two emissions for the fourth consecutive yeah. So our social economic programs, we positively impacted over 475000 lives. It is CSR spending off with these 240 million.

Speaker Change: Our workforce reflects a 14% gender diversity REIT with zoom and representing 10% of stimulus you maintained a lost time injury frequency rate of point or two on all of our suppliers are assessed against ESG criteria do I need to play a page 40, you highlighting the key features of avenues inaugural.

Sumant Sinha: In addition, we are also steadfast in our ESG commitments and our debut integrated report is a testament to the standards that we benchmark ourselves against.

Sumant Sinha: In fiscal 2025, we expect several of the unsigned PPS to be signed, providing us with an even clearer path beyond the current 15.6 gigawatt committed portfolio, along with full clarity on execution timeline.

Speaker Change: Wait to depart with the release of venues Anvil integrated report a leg to incorporation of key value additions to mention the value creation framework and factually showcasing the inputs business model outputs and outcomes also need a special emphasis on the robust corporate governance and risk.

Sumant Sinha: Furthermore, given the terms at which we have secured the pipeline, lower module prices, supply chain security, as well as given our conservative assumptions, we expect to generate better returns on the current pipeline of projects than the ones that we have executed to date.

Speaker Change: <unk> seen the avenue by lifting our risk identified and mitigation strategies adopted.

Speaker Change: Moving to page 15 that our preparation also integrated report led to Melisa.

Sumant Sinha: Moreover, we will continue to be disciplined and highly selective in our approach towards bidding for future growth and will look to secure projects with a lower risk and higher return profile.

Namely the very important Dublin materiality to pillar system with a core set of shed disclosure at least each pillar on an equal footing and includes both financial and in fact with the reality under one roof, but economic and sustainability report on our efforts to identify.

Speaker Change: Environmentally sustainable economic activities and to support sustainable investment.

Speaker Change: And truly aligned ourselves with the EU taxonomy, making us one of the first few Indian companies in the sector to do so turning to slide 16, we would now like to highlight a special initiatives for fiscal year 'twenty two 'twenty fault.

Sumant Sinha: We reiterate our FY25 guidance as well as our longer-term outcomes. We have already commissioned almost 500 megawatts of capacity this financial year and are well advanced on many other construction projects.

Speaker Change: Our flagship programs like in life, an initiative focused on last mile electrification of schools with less than three hours of electricity to solar energy enough to 583 schools established 119 digital learning centers lemon for climate and important part of our programs.

Speaker Change: Sushi economic empowerment program focused on building climate resilience, where we have trained 250 women salt on a farm us.

Sumant Sinha: Finally, safety is of utmost priority to us and it has been deeply embedded in our culture since day one. As a testament to that commitment and focus, we were recently awarded a five-star safety rating by the British Safety Council for one of our projects.

Speaker Change: On the sites some of the specific initiatives, we have undertaken odd programs led by our employees that is realized ensuring sustainable profitable and responsible growth.

Sumant Sinha: Turning to page 7, we have come a long way in 12 years by constructing 10 gigawatts.

Speaker Change: We have an annual volunteering campaign, which cover was most of our sites and renewals, we provide safe drinking water by building towards 'twenty Chi watertight diesel think 'twenty to 'twenty two leaks are gifts what once program, which is also another flagship program recognized by our <unk>.

Unknown Executive: Thank you for standing by and welcome to the Renew 1Q FY25 earnings report. All participants are in listen only mode. 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.

Speaker Change: Honorable President of India, where we distributed 836000 blankets across all the countries, where it does get quite cold donating not rise to the needy I'm contributing towards Oh, let's see India, maybe distributed about 143 kilos of rice across all our sites and in country and we know how.

Nathan Judge: I would now like to hand the conference over to Mr. Nathan Judge. Please go ahead. Yes, thank you and good morning, everyone. And thank you for joining us. We put out our best release last night announcing our results of the fiscal year first quarter, 2025, ending June 30, 2024. And a copy of the release and the earnings presentation are available on the investor's relations section of the Renews website at www. Renew.com.

Speaker Change: And it all what is the last to talk about our guidance.

Speaker Change: Thank you we shall I just wanted to earn my reemphasize is that there has never been a better time to be an Indian renewables from a market opportunity returns and capital deployment perspective coming to our guidance. While we had around one 3 billion rupees impact from weather. This quarter, we saw the <unk> in July.

Nathan Judge: With me today are Sumant Sinha, Founder, Chairman, and CEO, Kailash Vaswani, RCFO, Feshali Nigham, Sinha, Co-Founder, and Chairperson of Sustainability, and Anna Neshahi, SVP, Corporate Finance and Investor Relations. After the prepared remarks, which we expect will take a half hour, we'll open the call for questions. Please note, our safe harbor statements are contained with our press release, presentation materials, and materials available on our website. These statements are important and integral to all our remarks.

Speaker Change: And makes us confident that we will deliver on our annual EBITDA guidance, Hence we are reaffirming our megawatts and long term guidance as well, though note that historically, our Q2 numbers have been about 10% to 15% higher than Q1, and we should see a similar trend in Q2 subject to weather conditions and adjustments related to Lps and project soon.

Speaker Change: With that we will be happy to take questions.

Speaker Change: Thank you if you wish to ask a question. Please press star one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press star two if you're on a speakerphone. Please pick up your handset to ask a question.

Sumant Sinha: What took us 12 years for the first 10 gigawatts, we intend to repeat in less than 5 years for the next 10 gigawatts.

Sumant Sinha: There have been some learnings that we intend to implement in our future portfolio. Firstly, our thesis of having an in-house team for EPC, O&M, and digital platforms has provided us with significant differentiation vis-a-vis others, where we not only save on costs, but the turnaround time for our projects is lower than most peers.

Nathan Judge: There are risks and uncertainties that could cause our results differ materially from those expressed or implied by such forward-looking statements. So we encourage you to review the press release we furnish in our 6K and the presentation on our website for a more complete description. Also contained in our press release, presentation materials, and annual report are certain on IFRS measures that we reconciled to the most comparable IFRS measure. And these reconcilations are also available on our website in the press release, presentation materials are annual reported on our Form 20F.

Sumant Sinha: Do keep in mind that wind, which is a lot harder to execute, is approximately 50% of our delivered megawatts, which means that we have done so with a higher degree of difficulty than others who have been largely focused on solar.

Speaker Change: Our first question comes from Justin Clare with Roth Capital Partners.

Sumant Sinha: Keep also in mind that wind capex is almost double that of solar capex.

Justin Clare: Hi, Thanks for taking the questions.

Sumant Sinha: So every one megawatt of wind is, from a capital standpoint, more than one megawatt of solar.

Sumant Sinha: Secondly, when we took the decision to get into manufacturing, we received some strong feedback about it. However, today it has become a significant comparative advantage for us.

Justin Clare: So I wanted to start off here you know you had indicated that you contracted I think 600 megawatts of external module sales. So was wondering if you could talk about the potential revenue and margin profile for those sales.

Sumant Sinha: It is now my pleasure to hand it over to Samant, who has been recently appointed as a co-chair of Alliance of CEO Climate Leaders. Yeah, thank you Nathan. Good morning everyone and glad to have you all on our earnings call off today. Last quarter, we had a slightly different format where we talked about our long-term outlook and our vision. I thank all of our investors and stakeholders who appreciated the effort and clarity on the long-term vision.

Speaker Change: The anticipated timing of recognition and then if you could share is that with the customer within India or have you look to two markets are outside of India for for selling those muscles.

Speaker Change: Unless you want to take that.

Speaker Change: Yes.

Speaker Change: Yeah sure. So Justin Thanks for your question. So these these are customers are within India.

Sumant Sinha: As the Government of India has implemented ALMM, we have a secure source of modules. The availability of modules at the right cost is becoming a key differentiator in the Indian renewables landscape.

Sumant Sinha: Finally, our capital discipline, as well as our ability to access the cheapest and most diverse sources of capital, both for equity and debt, differentiates us from others.

So to secure some of these module suppliers.

Sumant Sinha: Turning to page 5 of the presentation. Last year, we kick-started our journey of doubling our operating portfolio by 2029 by winning more than 8 gigawatts and auctions. Of these wins, we have already converted 2.2 gigawatts into PPS with the majority expected to be converted over the next few months. While we pursue this growth, we will continue to be focused on shareholder value creation, accessing only the cheapest sources of capital and exploring avenues wherein the returns are materially above our cost of capital.

Speaker Change: Again, we cannot discuss disclosing the details of that in terms of pricing and all these.

Speaker Change: <unk> agreed to in terms of overall margins and what.

Speaker Change: Add to the EBITDA of the company as you go forward.

Speaker Change: Okay got it.

Sumant Sinha: Turning to page 8.

Speaker Change: And then you. So you have a commission portions of the RTC and peak power project here was wondering if you just update us on the performance that you're seeing or the commission portions of those projects how does it compare to your expectations and then how do you feel about meeting the requirements.

Sumant Sinha: Execution is a top priority and a key differentiator for us. We have executed 2 gigawatts of capacity over the last 12 months and reiterate our execution guidance of 1.9 to 2.4 gigawatts for fiscal FY25. Here to date, we have executed approximately 500 megawatts, including 400 megawatts of a solar CECI project, and have received COD approvals for all of the projects that were pre-COD at the time of fiscal 2024 earnings. In addition, we have over 600 megawatts of capacity that is in the advanced stages of completion and will enable us to hit our construction target.

Sumant Sinha: We signed 2.2 gigawatts of PPA during Q1 FY25 and continue to be optimistic about signing the majority of the PPAs from our current pipeline in the current fiscal year.

Sumant Sinha: Our recent auction wins are expected to generate returns higher than the historical average and we expect the trend to continue given the robustness of the auction market. We also recently filed our annual 20F for fiscal 2024 wherein we are in compliance with SOC requirements, in addition, we are also steadfast in our ESG commitments and our debut Integrated Report is a testament to the standards that we benchmark ourselves against. In fiscal 2025, we expect several of the unsigned PPS to be signed, providing us with an even clearer path beyond the current 15.6 gigawatt committed portfolio, along with full clarity on execution timelines.

Speaker Change: Under those ppas.

Speaker Change: So at this point in time, we have commission part of it and we are not selling it under the PPA because the pool system is ready.

Speaker Change: Right now all the fees that are happening to the merchant market, but we are seeing attractive realizations on whatever we are selling.

Speaker Change: In the midstream market better than our base case.

Speaker Change: Okay, Okay got it.

Speaker Change: And then maybe just one more just how are you thinking about asset recycling. This year are there particular projects that you're in the market with looking to monetize and just what's the potential to see an asset sale in fiscal 'twenty five here.

Sumant Sinha: Furthermore, given the terms at which we have secured the pipeline, lower module prices, the fly chain security, as well as given our conservative assumptions, we expect to generate better returns on the current pipeline of projects than the ones that we have executed to date. Moreover, we will continue to be disciplined and highly selective in our approach towards bidding for future growth and will look to secure projects with a lower risk and higher return profile.

Speaker Change: So again it will be very opportunistic Justin right now we have a few discussions going on and when they look at Guangdong <unk>.

Speaker Change: Currently asset recycling is offering us the lowest cost company. So we will be disciplined about it and you know to meet that requirement, we may monetize some assets.

Speaker Change: Okay I appreciate it thank you.

Justin Clare: Thank you Justin.

Sumant Sinha: We reiterate our FI-25 guidance, as well as our longer term outlook. We have already commissioned almost 500 megawatts of capacity this financial year and are well advanced on many other construction projects. Finally, safety is of utmost priority to us and it has been deeply embedded in our culture since day one. As a testament to that commitment and focus, we were recently awarded a high-star safety rating by the British Safety Council for one of our projects.

Speaker Change: Your next question comes from the heap Mandalay with Mizuho.

Mandalay: Hey, Hello, guys. Thanks for taking the questions here, but maybe just following up on Justin's question on the module saves could you just talk about the timing of that 600 megawatts of.

Sumant Sinha: Our module manufacturing continues to scale up and our module supply is now fully met from our own manufacturing facility. The Jaipur facility will produce more than 2 gigawatts of modules this year, while the Gujarat facility is already operational and should be ramped up fully by the end of the year. We have also started to secure external sales contracts for module supply and we currently have contracted to sell around 600 megawatts this financial year. These contracts will ensure that our surplus capacity is put to good use and will enable a faster return on capital deployed.

Kailash Vaswani: Now, let me hand it over to Kailash to talk more about the finance strategy.

Speaker Change: Something you kind of like a plant to this fiscal year or next and could.

Kailash Vaswani: Thank you.

Kailash Vaswani: As can be seen on slide 10, we continue to deliver consistent growth. Since the same time last year, we have constructed over 2 gigawatt of projects, a near 24% increase in operating capacity after adjusting for 400 megawatts sold during the year.

Kailash Vaswani: While there has been a 24% increase in operating megawatts, I would like to remind you that our EBITDA, our adjusted EBITDA last year, benefited from late payment surcharges, which was absent this quarter, and we continue to fade away as we have largely received most of our LPS.

Kailash Vaswani: That was due to us, and all our customers are currently paying their bills on time.

Kailash Vaswani: In addition, we sold 400 MW during the year, which contributed to last year's EBITDA.

Kailash Vaswani: Lastly, this quarter we saw slightly lower PLFs and that impacted our revenues by about 1.3 billion INR.

Vaishali Sinha: Let me hand it over to Vaishali for comments on EAC.

Speaker Change: Could we kind of think of that as a programmatic. This there could be no production and your needs and everything else kind of assuming that it's all in the Indian market.

Kailash Vaswani: We have seen a recovery in the weather in July which was about 10 to 15 percent better than last year.

Vaishali Sinha: Thank you, Kailash.

Kailash Vaswani: To conclude, while there was almost 3.9 billion increase in revenue due to higher megawatts, our excess rebate increased by only about 400 million INR due to all these facts.

Vaishali Sinha: We are delighted to present Renew's Inaugural Annual Integrated Report for Fiscal Year 2023-2024.

Kailash Vaswani: Moving on to slide 11, the leverage at the operating asset levels continues to be well below the 6x threshold that we have set. On a training 12-month basis, the leverage was around 5.7x, excluding our under-construction portfolio, contribution from JV partners in the form of CCDs, and our manufacturing and transmission businesses. The 5.7x leverage is after taking into account the fact that we commissioned a large capacity of 650 megawatts in the last month of the previous year. For which the EBITDA contribution has been only for a single quarter.

Vaishali Sinha: This is a testament to our commitment to exceeding geographical reporting standards and advancing global transparency.

Kailash Vaswani: The debt related to our manufacturing and transmission business does not contribute to our adjusted EBITDA, but it does provide us a comparative edge for our business.

Vaishali Sinha: With the release of our integrated report, Renew has achieved its several firsts, setting new benchmarks in our ESG vision, performance, and transparency, which I will elaborate in the coming slides. The Annual Integrated Report has been crafted in alignment with IIRC, GRI, SASB, UNGC, among others.

Kailash Vaswani: As we continue to grow our portfolio, the proportion of under-construction projects as a percentage of overall portfolio should come down and will improve the ratios in addition to our efforts to be disciplined in our approach towards capital deployment.

Vaishali Sinha: The financial and the non-financial parameters for FY 23-24 have been externally assured by S.R.

Vaishali Sinha: Bartleboi & Co. and E&Y LLP respectively.

Vaishali Sinha: Turning to page 13, showcasing the key performance highlights for Fiscal Year 2023-24, in Fiscal Year 23-24, Renew has made significant strides in its ESG efforts, showcasing a strong commitment to safety, sustainability and social responsibility. We successfully avoided 16 million tons of GHG emissions, reflecting a 15% year-on-year increase and saved 358,000 metric cube of water, marking a 13% improvement.

Vaishali Sinha: Our operations sourced 41% of electricity from clean sources and we achieved carbon neutrality for scope one and scope two emissions for the fourth consecutive year. Through our socioeconomic programs, we positively impacted over 475,000 lives with a CSR spending of rupees 240 million.

Sumant Sinha: Turning to page 7, we have come a long way in 12 years by constructing 10 gigawatts. What took us 12 years for the first 10 gigawatts? We intend to repeat in less than 5 years for the next 10 gigawatts. There have been some learnings that we intend to implement in our future portfolio. Firstly, our thesis of having an in-house team for EPC, O&M, and digital platforms has provided us with significant differentiation vis-a-vis others, where we not only save on costs, but the turnaround time for our projects is lower than most peers.

Vaishali Sinha: Our workforce reflects a 14% gender diversity rate with women representing 10% of STEM roles.

Vaishali Sinha: We maintained a lost time injury frequency rate of 0.22 and all our suppliers were assessed against ESG criteria.

Vaishali Sinha: Turning to page 14, highlighting the key features of Renew's inaugural integrated report.

Vaishali Sinha: With the release of Renew's annual integrated report led to incorporation of key value additions to mention the value creation framework, impactfully showcasing the inputs, business model, outputs and outcomes.

Speaker Change: Yeah.

Sumant Sinha: Do note that historically our Q2 numbers have been about 10 to 15% higher than Q1 and we should see a similar trend in Q2, subject to weather conditions and adjustments related to LPS and project sold.

Vaishali Sinha: Also laid a special emphasis on the robust corporate governance and risk management framework at Renew by listing our risk identified and mitigation strategies adopted.

Sumant Sinha: With that, we will be happy to take questions.

Vaishali Sinha: Moving to page 15, preparation of integrated report led to many firsts at Renew, namely the very important double materiality, a two pillar system with a core set of shared disclosures that place each pillar on an equal footing and includes both financial and impact materiality under one roof for economic and sustainability reporting and our effort to identify environmentally sustainable economic activities and to support sustainable investment.

In terms of timing its going to be a function of the production cycle beyond following most of them want to be back ended towards the end of this financial year and some part of it will slip into the next financial year also.

Operator: Thank you.

Vaishali Sinha: We voluntarily aligned ourselves with the EU taxonomy, making us one of the first few Indian companies in the sector to do so.

Vaishali Sinha: Turning to slide 16, we would now like to highlight our special initiatives for fiscal year 23-24. Our flagship programs, Lighting Lives, an initiative focused on last-mile electrification of schools with less than three hours of electricity through solar energy, electrified 183 schools, established 119 digital learning centers.

Vaishali Sinha: Women for Climate, an important part of our programs, a socioeconomic empowerment program focused on building climate resilience where we have trained 350 women salt pan farmers.

Operator: If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

Vaishali Sinha: On this site, some of the specific initiatives we have undertaken are programs led by our employees, that is renewers, ensuring sustainable, equitable, and responsible growth.

Operator: If you wish to cancel your request, please press star 2.

Vaishali Sinha: Thank you, Vaishali.

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

Sumant Sinha: I just wanted to end by re-emphasizing that there has never been a better time to be in Indian Renewables from a market opportunity, returns and capital deployment perspective.

Sumant Sinha: Coming to our guidance, while we had around 1.3 billion rupees impact from weather this quarter, we saw the trend reverse in July and makes us confident that we will deliver on our annual EBITDA guidance.

Sumant Sinha: Hence, we are reaffirming our megawatts and lockdown guidance as well.

Speaker Change: That's what it is and again, we have said that this in that capacity for a cafe requirements through largely we would prioritize back to me.

Speaker Change: IPP solar business.

Speaker Change: Clemens.

Speaker Change: If there's an opportunistic play there.

Speaker Change: Terms of better margins, but then we may look to sell some of these modules to third party customers.

Sumant Sinha: Do keep in mind that wind, which is a lot harder to execute, is approximately 50% of our delivered megawatts, which means that we have done so with a higher degree of difficulty than others who have been largely focused on solar. Keep also in mind that wind capex is almost double that of solar capex. So, every one megawattu wind is from a capital standpoint more than one megawattu solar. Secondly, when we took the decision to get into manufacturing, we received some strong feedback about it.

Speaker Change: We it's early days, so we are not really giving any guidance on that.

Speaker Change: Oh in terms of what our requirements are likely to be and how much surplus.

Speaker Change: And what opportunities are available to monetize that.

Speaker Change: Collage, if I if I could.

Speaker Change: Sorry, if I may just add to that.

Speaker Change:

Speaker Change: If you if you look at how much we are going to be producing this year.

Speaker Change: You are in terms of setting up budget capacity of solar then and how much we have in terms of production capacity on the manufacturing side I think it's fairly clear that we will be selling.

Sumant Sinha: However, today it has become a significant comparative advantage for us. As the Government of India has implemented ALMM, we have a secure source of modules. The availability of modules at the right cost is becoming a key differentiator in the Indian Renewables Landscape. Finally, our capital discipline as well as our ability to access the cheapest and most diverse sources of capital, both for equity and debt, differentiates us from others. Turning to page 8, execution is a top priority and a key differentiator for us.

Speaker Change: So amount into the market on a regular basis going forward.

Speaker Change: Only thing is it depends obviously on monodic five minutes out of buses are when the production would be happening, but you should assume that there will be a you know a chunk of sales that'll happen from a manufacturing business into the market.

Speaker Change: And this for you to note that our two kinds of sales.

Speaker Change: Obviously, there are there are pure module sales only.

Sumant Sinha: We have executed two gigawatts of capacity over the last 12 months and reiterated our execution guidance of 1.9 to 2.4 gigawatts for fiscal FI-25. Executive. Year to date, we have executed approximately 500 megawatts, including 400 megawatts of a solar psychic project and have received COD approvals for all of the projects that were pre-COD at the time of fiscal 2024 earnings. In addition, we have over 600 megawatts of capacity that is in the advanced stages of completion and will enable us to hit our construction targets.

Speaker Change: And then there are modules sales along with sales.

Speaker Change: And those have different realizations, given the supply demand for modules and supply demand for says.

Speaker Change: So that's when we see how we should think about it.

Speaker Change: Got it and just talk about.

Speaker Change: Seeing any interest from although the markets outside of.

Speaker Change: India.

Speaker Change: We are we are seeing interest at this point.

Speaker Change: We are waiting for a solid plan to get commission, which will happen later this financial year, and then of course there'll be a period of stabilizing and I think once all of that is done then we would be in a position to start supplying cells into the.

Sumant Sinha: We signed 2.2 gigawatts of PPS during quarter one FI-25 and continued to be optimistic about signing the majority of the PPS from our current pipeline in the current fiscal year. Our module manufacturing continues to scale up and our module supply is now fully met from our own manufacturing facilities. The JAPO facility will produce more than two gigawatts of modules this year, while the Gujarat facility is already operational and should be ramped up fully by the end of the year.

Markets any markets either the domestic content requirement market in India.

Are all the export market. So I would I would imagine that will probably start happening from next financial year onward sometime.

Speaker Change: Got it and then just maybe one small a modeling question on housekeeping.

Speaker Change: DSO the increase a little bit this quarter I think last quarter, we are expecting it to be flattish or down, it's just filling ghana or anything else kind of impacting that.

Sumant Sinha: We have also started to secure external sales contracts for module supply and we currently have contracted to sell around 600 megawatts this financial year. These contracts will ensure that our surplus capacity is put to good use and when enable a faster return on capital deployed.

Speaker Change: So, it's mostly just a quarterly distribution because going into quarter one.

Speaker Change: Revenues, while at lesser compared to the receivables was.

Speaker Change: That's where the issue is a little bit.

But it's nothing significant.

Kailash Vaswani: Now, let me hand it over to Keras to talk more about the finance strategy. Thank you. Thank you so much. As can be seen on flight 10, we continue to deliver consistent growth. Since the same time last year, we have constructed over two gigawatts of projects, a near 24% increased in operating capacity after adjusting for 400 megawatts sold during the year. While there have been a 24% increase in operating megawatts, I would like to remind you that our adjusted EBITDA last year benefited from late payments surcharges which was absent this quarter and we continue to fade away as we have largely received most of our LPS that was due to us and our customers are currently paying the bills on time.

Speaker Change: So I would say my heap also quickly and it also typically seasonality and all in all.

Speaker Change: And our receivables.

Speaker Change: Because building starts to go up quite substantially in the highway months and the receivables tend to come in on a more even basis.

Speaker Change: Got it so it seems more seasonality not any.

Yes and no.

Speaker Change: No it's not.

Speaker Change: Got you.

Speaker Change: Well I'll jump back in the queue here. Thanks.

Speaker Change: Your next question comes from Andrew size and scale with seaport.

Justin Clare: Your first question comes from Justin Clare with Wealth Capital Partners.

Justin Clare: All right, thanks for taking our questions.

Andrew: Thank you. So my first question is about the wind Pls coming week and I understand that there is.

Justin Clare: So I wanted to start off here, you know, you had indicated that you've contracted, I think, 600 megawatts of external module sales.

Justin Clare: So I was wondering if you could talk about the potential revenue and margin profile for those sales, the anticipated timing of recognition, and then if you could share, is that with a customer within India, or have you looked to markets outside of India for selling those modules?

Kailash Vaswani: In addition, we sold 400 megawatts during the year which contributed to last year's EBITDA. Lastly, this quarter, we saw slightly lower PLF and that impacted our revenues by about 1.3 billion INR. We have seen a recovery in the weather in July which was about 10 to 15% better than last year.

Kailash Vaswani: Kailash, do you want to take that?

Speaker Change: Some weather variations, but I'm wondering the U S, where we're having more of a mindset shift.

Kailash Vaswani: To conclude, while there was almost 3.9 billion increase in revenue due to higher megawatts, our adjusted EBITDA increased by only about 200 million INR due to all these factors.

Kailash Vaswani: Yes, sure.

Speaker Change: With her binds onshore wind turbines. So I'm just wondering if it.

Kailash Vaswani: So, Justin, thanks for your question.

Kailash Vaswani: So these are customers, you know, within India, to secure some of these module supplies and again, we are not disclosing the details of that in terms of pricing and all, but these are aggretive in terms of overall margins and would add to the bit of the company as we go forward.

Speaker Change: The underperformance of your wind assets has anything to do with the equipment issue. So this is just the weather.

Justin Clare: Okay, got it.

Speaker Change: It's just the weather.

Speaker Change: There is no there is no deadline performance issue in fact.

Speaker Change: Performance of Winter this has been asked but I.

Aspen.

Speaker Change: The expectation.

Kailash Vaswani: Moving on to slide 11, the leverage at the operating asset levels continues to be well below the 6x threshold that we have set. On a training 12 month basis, the leverage was around 5.7x excluding our under construction portfolio contribution from JV partners in the form of CCDs and a manufacturing and transmission businesses. The 5.7x leverage is after taking into account the fact that we commissioned a large capacity of 650 megawatts in the last month of the previous year for which the EBITDA contribution has been only for a single quarter.

Speaker Change: Ross.

Speaker Change: Plus all the.

Turbine models that we have and you know we have buying from that is different suppliers, both Indian and international So we haven't seen any any systemic issue that it just really be intervened.

Speaker Change: And if you think about your assumptions like the longer term assumptions for the the wind Pls have you.

Speaker Change: Sort of tweaked them I E. A lot with them just to account for those you know relatively disappointing pls that we have seen in the last couple of years.

Speaker Change: We have done that and so far all the future forecast and the bids that we are doing we have significantly.

Kailash Vaswani: The debt related to our manufacturing and transmission business does not contribute to our adjusted EBITDA but it does provide us a competitive edge for our business. As we continue to grow up for you, the proportion of under construction projects as a percentage of overall pull for you should come down and will improve the ratios in addition to our efforts to be disciplined in our approach towards capital deployments.

Speaker Change: Changed the methodology.

Speaker Change: Basically the point is the following that if you if you take a longer history than the forecast of the future and ends up being higher if you take the more near term years.

Speaker Change: And base your forecast off of that then the predictions ends up being a little bit lower.

Vaishali Sinha: Let me hand it over to Vishali for comments on ESG. Thank you, Kailash.

Speaker Change: So if you followed the traditional methodologies of usage.

Speaker Change: Five years of data, you'll end up typically with a higher pls. So we're beginning now to give a little bit more weighted to the more recent years, so that our future forecast of more conservative than they would have been I should also add that none of the third party wind forecasting.

Vaishali Sinha: We are delighted to present Renew's inaugural annual Integrated Report for fiscal year 2023-24. This is a testament to our commitment to exceeding geographical reporting standards and advancing global transparency. With the release of our Integrated Report, Renew has achieved its several first, setting new benchmarks in our ESG vision, performance and transparency, which I will elaborate in the coming slides. The Anvil Integrated Report has been crafted in alignment with IIRC, GRIs, ASP, UNGC, among others.

Speaker Change: Forecasting agencies have made that so you know be sort of Ah I I'd be more conservative than where the market is right now.

Speaker Change: And even for budgeting purposes, therefore, we reduced our out of your in your forecast as well.

Speaker Change: Okay, and then secondly, I'm again, just a comparison to what's happening here in the last one on the renewal beside them.

I mean, there's lots of discussion about data centers, and colocation and and renewable power feeding into into the tank.

Vaishali Sinha: The financial and the non-financial parameters for fiscal year 2023-24 have been externally assured by SR Bakliboy and company and E&Y LLP respectively. Turning to page 13, showcasing the key performance highlights for fiscal year 23-24. In fiscal year 23-24, Renew has made significant strides in its ESG efforts showcasing a strong commitment to safety, sustainability and social responsibility. We successfully avoided 16 million tons of GHG emissions reflecting a 15% year-on-year increased and saved 358,000 metric cube of water marking a 13% improvement.

Speaker Change: Hi Tech high power Tech users does that.

Speaker Change: A phenomenon that you actually see them in India, I mean, maybe not now but going forward in the stack.

Speaker Change: You know that the type of business that could keep give your premium margins for our renewable talking about.

Yeah. So for sure Angie all of that is feeding into overall aggregate power demand, which is growing at 7% to 8% a year in India right now.

Speaker Change: And.

Speaker Change: And just a word about the overall demand supply situation in the country at this point.

Speaker Change: Not able to meet the power demand growth so.

Speaker Change: So far we would add certain.

Vaishali Sinha: Our operation sourced 41% of electricity from clean sources and we achieved carbon neutrality for scope 1 and scope 2 emissions for the fourth consecutive year. Through our socio-ethnomic programs, we positively impacted over 475,000 lives with a CSR spending of rupees 240 million. Our workforce reflects a 14% gender diversity rate with women representing 10% of STEM roles. We maintained a lost time injury frequency rate of 0.22 and all our suppliers were assessed against ESG criteria.

Speaker Change: Excess capacity is on the coal side, but a lot of those capacities that I have got exhausted with the demand growth that we witnessed called capacity additions is quite limited in India. Because we just don't have an EPC slash equipment market that can add glue capacities beyond a certain speed.

Speaker Change: So renewables really is the only other alternative and which is growing at a certain pace and until that payer steps up you will see the deficits in the market and therefore higher merchant prices and and that's really what we're seeing right now overall in the market.

Vaishali Sinha: Turning to page 14, highlighting the key features of Renew's inaugural Integrated Report. With the release of Renew's annual Integrated Report, led to incorporation of key value additions to mention the value creation framework, impactfully showcasing the inputs, business model, outputs and outcomes. Also laid a special emphasis on the robust corporate governance and risk management framework at Renew by listing our risk identified and mitigation strategies adopted. Moving to page 15, preparation of Integrated Report led to many firsts at Renew, namely the very important double materiality, a two-pillar system, with a core set of shared disclosures that place each pillar on an equal footing and includes both financial and impact materiality under one roof for economic and sustainability reporting and our effort to identify environmentally sustainable economic activities and to support sustainable investment. We voluntarily aligned ourselves with the EU taxonomy, making us one of the first few Indian companies in the sector to do so.

Speaker Change: Okay. Thanks.

Speaker Change: Your next question comes from Puneet Gulati with HSBC.

Puneet Gulati: Oh, yeah. Thank you so much.

Speaker Change: Well, let's move on he solar cell capacity can.

Puneet Gulati: Can you talk about where are you in that journey when should we expect commissioning on the sort of thing.

Speaker Change: Yeah. So we're very close to getting into a point of getting the first one stands out and I would say in the next few months you should be able to Oh, we should be able to start seeing us.

Speaker Change: You know the initial product trial productions on stock.

Speaker Change: And.

Justin Clare: And then, so you have commissioned, you know, portions of the RTC and Peak Power project here.

Speaker Change: And then of course there'll be a period of stabilization as you know to me because obviously sell says is a is a little bit more complex modules and expectation is that by the end of this financial year the cell plant will be in reasonably good.

Justin Clare: I was wondering if you just update us on the performance that you're seeing for the commissioned portions of those projects.

Speaker Change: Shape in terms of.

Oh.

In terms of its output.

Speaker Change: And so by next financial year.

Speaker Change: Sure.

Speaker Change: Yeah by the end of this financial year, So, let's say in the next as I said next two three months, we should start seeing.

Justin Clare: How does it compare to your expectations?

Speaker Change: The production start to happen and then there'll be a ramp up period, which I presume will last a few months, but certainly the production was stopped.

Vaishali Sinha: Turning to slide 16, we would now like to highlight our special initiatives for fiscal year 2023-24. Our flagship programs, Lighting Life, an initiative focused on last mile electrification of schools with less than three hours of electricity through solar energy, electrified 183 schools established 119 digital learning centers. Women for climate, an important part of our programs, our socio-economic empowerment programs, focused on building climate resilience where we have trained 350 women, salt and a farmer.

Speaker Change: You know.

Speaker Change: This year itself. This calendar year. It says and then after that there'll be a period of stabilization and ramp up and then from next financial year, we should be able to be in good shape to deliver most of the capacity.

Speaker Change: Okay, and how is the transmission pipe for the one and a half dozen toward that.

Unknown Executive: And then how do you feel about meeting the requirements under those PPAs?

Speaker Change: The convention business is that all the time.

Unknown Executive: So, at this point in time, you know, we have commissioned parts of it and we are not selling it under the PPA because the full system isn't ready. So, right now, all the sales are happening through the merchant market. But we are seeing attractive realizations on whatever we are selling in the merchant market better than our base case.

Speaker Change: No yeah, so believe all of our transient transmission.

Justin Clare: Okay, okay, got it.

And when you say transmission, you mean, I presume the intent to make it into the grid connected yeah. Yeah. Yeah. So all of that is really tied up in it not just for this capacity to be commissioned this year, but for our entire capacity going out for the 'twenty. One 'twenty two gigawatts that we have one altogether.

Vaishali Sinha: On the site, some of the specific initiatives we have undertaken are programs led by employees that is renewers, insuring sustainable, equitable and responsible growth. We have an annual volunteering campaign which covers most of our sites and renewers. We provide safe-drinking water by building 23 water tanks, diesel 22 lakes, a gift for a warmth program which is also another flagship program recognized by our honorable president of India where we distributed 836,000 blankets across the countries where it does get quite cold, donating rice to the president's country.

Justin Clare: And then maybe just one more, just how are you thinking about asset recycling this year?

Justin Clare: Are there particular projects that you're in the market with looking to monetize?

Unknown Executive: And just what's the potential to, to see an asset sale in fiscal 25?

Speaker Change: So almost for the entire capacity of the <unk>.

Speaker Change: Execution on our transmission and connectivity is tied up.

Speaker Change: And the important thing to notice that over and above that we have some excess capacities that we have blocked by the mechanism that is allowed in India. So we have a few gigawatts excess over that beyond the 20 odd gigawatts that we have one right now.

Speaker Change: So on the connectivity front I think we've been very proactive.

Speaker Change: About getting connectivity and the best Substations and I think a little bit Underappreciated fact is that it's those connectivity applications in the better substations that'll allow us to get generate and drive higher profitability and future projects.

Kailash Vaswani: Let me now hand it over to Kailash to talk about our guidance. Thanks, Vaishali. I just wanted to end by re-emphasizing that there has never been a better time to be in Indian renewables from a market opportunity returns and capital deployment perspective coming to our guidance. While we had around 1.3 billion rupees impact from whether this quarter we saw the trend reverse in July and makes us confident that we will deliver on our annual EBITDA guidance, hence we are reaffirming our megawatts and long-term guidance as well.

Speaker Change: Which we have done is in many ways.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Plus machine connectivity are the bulk of them coming in at.

Speaker Change: You all are in line with Europe, and we think the basketball.

Speaker Change: We had a compelling from pwc and the loss with the Mi.

Speaker Change: No. So you know the thing is that every every substation.

Speaker Change: Pretty good visibility on when the transmission.

Speaker Change: The contractor is likely to commission the substation and obviously the more near term. The commissioning date is the more the certainty of that they'd be met is and the most future out it is the less the certainty, but by and large within a three to six months time period.

Kailash Vaswani: Don't note that historically our Q2 numbers have been about 10 to 15 percent higher than Q1 and we should see a similar trend in Q2, subject to weather conditions and adjustments related to LPS and project sold.

Unknown Executive: With that, we will be happy with the questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speaker phone, please pick up your handset to ask your question.

Speaker Change: It makes it a company now for three four years later.

Speaker Change: Connectivity does tend to get done so without seeing delays more than that and of course, we are able to manage.

Speaker Change: Manage our own construction timelines to be in sync with what we're seeing happening on the.

Justin Clare: Your first question comes from Justin Claire with Rock Capital Partners.

Speaker Change: Transmission construction.

Kailash Vaswani: Hi. Thanks for taking a question. So I wanted to start off here. You know, you had indicated that you contracted I think 600 megawatts of external module sales. So was wondering if you could talk about the potential revenue and margin profile for those sales, the anticipated timing of recognition, and then if you could share, is that with the customer within India or have you looked to market outside of India for selling those modules?

Speaker Change: Construction timelines.

Speaker Change: Understood. That's helpful. Thank you so much and all of them.

Speaker Change: And for this year, we are not seeing any delays by the way just if that was also something that you were looking at.

Speaker Change: Yeah.

Speaker Change: [laughter].

Speaker Change: Your next question comes from and I mean, I'm with Bernstein.

Speaker Change: Oh Hi, Thank you for taking my question. My question was regarding the short term policy are that you had mentioned that happened in Q1 'twenty side can you.

Speaker Change: No that's my wife.

Speaker Change: One five.

Speaker Change: My father bags made up the revenue or the breakdown like how much of that was a part of Florida, and then you'll be a bit in the quarter.

Kailash Vaswani: Tell us you want to take that. So Justin, thanks for your question. So these are customers within India to secure some of these module supplies. And again, we are not discussing the details of that in terms of pricing and all, but these are agreeative in terms of overall margins and what add to the without the company as you go forward.

Speaker Change: Okay.

Speaker Change: Only one translated happening too.

Speaker Change: The some policy.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yeah, Yeah sure. So you know we have been in the Cathedral did we have it on 400 megawatt.

Speaker Change: And in.

Speaker Change: In the Big bump where did we have around 300 Mega Ward.

Speaker Change: Which is.

Kailash Vaswani: Okay, got it. And then so you have commissioned portions of the RTC and peak power project here. Was wondering if you just update us on the performance that you're seeing for the commission portions of those projects. How does it compare to your expectations and then how do you feel about meeting the requirements under those PPAs? So at this point in time, you know, we have commissioned parts of it and we are not selling it under the PPA because the full system is ready. So right now, all the sales are happening through the merchant market. So we are seeing attractive realizations on whatever we are selling in the merchant market better than our base case.

Speaker Change: Currently on the pieces of what you see is I mean, the 400 megawatt of solar 300 in RPC and 274, and our D. C. Piedmont has waned and another 300 in Rbcs wind.

Unknown Executive: Okay. Got it.

Speaker Change: So all of this is kind of on the basis of my team we are selling the power.

Speaker Change: And in terms of.

Speaker Change: Breakup of that you know, we can we can still get back.

Speaker Change: Sure. Thank you.

Speaker Change: Yeah.

Speaker Change: Your next question comes from Imac and with Morgan Stanley.

Speaker Change: Hello.

Imac: Sorry, My question was on the manufacturing front.

Now you already showed one gigawatt in F 'twenty food internal consumption and Oh with that what is the garneau for cost and realization that you go to approximate losing another kind of margin that you can make on it every time origin and the back margin.

Kailash Vaswani: And then maybe just one more. Just how are you thinking about asset recycling this year? Are there particular projects that you're in the market with looking to monetize and just what's the potential to to see an asset sale in fiscal 25. So again, right now, you know, we have a few discussions going on and you know, when there was a requirement of capital, you know, currently asset recycling is offering us the lowest cost capital. So we've been disciplined about it and you know, to meet our requirements, you know, we may monetize some assets.

Unknown Executive: Okay. I appreciate it.

Unknown Executive: Thank you. Thank you, Justin.

Speaker Change #101: Ballpark figures.

Okay.

Speaker Change #101: Yeah, So I'm, saying that these are this is a internally to again, we are not putting any numbers on them right now Mike obviously, we target again on a transfer pricing basis, a certain margin.

Speaker Change #101: We judge to these businesses, but then eventually everything gets capitalized.

Speaker Change #101: So it gets we get basically capitalize a lower cost.

Speaker Change #101: Because in consolidation anything its muscles.

Right right, but I think to your question.

Speaker Change #102: We hired or like high teen EBITDA margin automating or see looting every time I hadn't gone up.

Vaishali Sinha: Your next question comes from the heat Mandalay with Mrs. Who? Hey, hello. Thanks for saying the questions here. Maybe just falling upon Justin's question on the module sales. Could you just talk about the timing of that 600 megawatts of something you kind of like a plan to this fiscal year or next and could we kind of think of that as a programmatic is look at the production and your needs and everything else kind of assuming that it's sold in the Indian market.

Speaker Change #103: Any idea on that or you can give us.

Speaker Change #104: CBA is targeting.

Around wholesale margin moving to less than 10% because it's all in Tony Captain.

Speaker Change #105: But I'll tell you what I see that most of the question is that for us the the the margin on the transfer pricing doesn't really matter because this colossal it gets consolidated.

Speaker Change #106: What are we out however, doing is what we are how we're doing is we will be starting at some point in the near future to start reporting the P&L of the solar manufacturing business separately assuming a.

Vaishali Sinha: Yeah. So in terms of timing, you know, it's going to be a function of, you know, the production cycle that we are following. Most of it is going to be back ended towards the end of this financial year and some part of it will slip into the next financial year also. So that's that's where it is. And again, you know, we have set up this entire capacity for our captive requirements. So largely we would prioritize that to meet our IPT solar business requirements.

Speaker Change #106: Arm's length transfer pricing between the two businesses.

Speaker Change #107: Okay. So that's something that's something that we're going to start doing at some point in the future.

Speaker Change #108: Right and sorry, a moot point on this one that we talked about you know as you said you would like to keep it below 10% so would it be somewhat somewhat equivalent and the external sales as well.

Vaishali Sinha: And you know, if there's an opportunistic play this in terms of better margins, then we may look to sell some of these modules to third party customers. Again, you know, we it's early days. So we are not really giving any guidance on that till we, you know, stabilize on terms of what our requirements are likely to be and how much surplus we will have, you know, and what opportunities are available to monetize that.

Or would it differ materially.

Unknown Executive: So again, it's very opportunistic, Justin.

Speaker Change #108: Once again, it will be very opportunistic and in those cases.

Speaker Change #108: Okay.

Speaker Change #109: He didn't make it does differ materially yet.

Speaker Change #110: Oh right right.

Speaker Change #111: Just another question it was Oh, I mean any visibility on the capacity that you have to put out or for Iot or the JV on green hydrogen.

Vaishali Sinha: Kailash, if I, if I may, if I may just add to that answer by Kailash, you know, if you look at how much we are going to be producing this year in terms of setting up project capacity of solar and how much we have in terms of production capacity on the manufacturing side, I think it's fairly clear that we will be selling, you know, some amount into the market on a regular basis going forward. The only thing is it depends obviously on when our requirements are versus when the production will be happening, but you should assume that there will be a, you know, chunk of sale that will happen from a manufacturing business into the market.

Speaker Change #112: No not yet simply because that bid has to happen I mean that has been to have to happen that will have to wind first and then we'll have to see basis that how much capacity, we need to allocate for that Jay.

Unknown Executive: Right now, you know, we have a few discussions going on.

Unknown Executive: And you know, when there's a requirement of capital, you know, currently asset recycling is offering us the lowest cost capital.

Speaker Change #111: Right correct.

Speaker Change #112: So some of them.

Speaker Change #111: Thank you.

Speaker Change #111: Your next question comes from Puneet Gulati with HSBC.

Unknown Executive: So we'll be disciplined about it.

Speaker Change #111: Honey Galotti your line is open.

Unknown Executive: And you know, to meet our requirements, you know, we may monetize somehow.

Puneet Gulati: Yes. Thank you. Thank you for the follow up my question is if you can talk a bit about the CDN business.

Speaker Change #114: Our recently commissioned solar and wind in terms of what kind of New York, you're experiencing via mobile.

Vaishali Sinha: And just for you to know there are two kinds of sales obviously there are there are pure module sales only and then there are modules sales along with sales, and those have different realizations, given the supply demand for modules and supply demand for sales. And so that's what we are thinking about.

And in December.

Speaker Change #114: Yeah.

Speaker Change #115: So on solar to believe Theres been no.

Speaker Change #114: Sure.

Speaker Change #114: The BLS even for the older projects.

Speaker Change #114: Obviously, there for the new products as well are pretty much in line with what we had assumed.

Sumant Sinha: Can I just talk about seeing any interest from other markets outside of India? Yeah, we are seeing interest. At this point, we are waiting for our self plan to get commission which will happen later this financial year. And then of course, there will be period of stabilizing. And I think once all of that is done, then we will be in a position to start supplying sales into the markets, any markets, either the domestic content requirement market in India or the export market. So I would imagine that will probably start happening from next financial year onwards sometime.

Speaker Change #114: As far as when BLS on newer projects is concern the project relative Commission now these forecast we made four years five years ago. When we were following a little bit more of the older methodology, which we have subsequently changed.

Justin Clare: Okay, I appreciate it.

Speaker Change #116: Okay. So but also what's happened is the machine types have changed a lot. Because these are the machines have machine now commissioning a three plus megawatt machines with much higher how bites and so on so the pls of these new machines are therefore higher.

Operator: Thank you.

Operator: Thank you, Justin.

Speaker Change #117: But we don't have enough of them.

Speaker Change #118: Yeah listen what they'll be.

Speaker Change #118: Yeah. That's so you see it will have to wait for the whole year to finish before we can assess but in general the pls of these new machines would have been at least 10% to 15% higher than the older machines, just given the nature of the more sophistication of these machines and their hires.

Kailash Vaswani: Just maybe one small modeling question or I was keeping DSO increase a little bit this quarter. I think last quarter we are expecting it to be flatish or down. Is this still in Ghana or anything else kind of impacting that? So it's mostly just a quarterly distribution because the quarter one revenues were a little lesser compared to what the receibles were. So that's where the ratios are a little bit higher, but it's nothing significant.

Speaker Change #118: Mega Watt and structural configuration, so be odd we should be expecting a high appeal it but we'll.

Speaker Change #118: You'll have to wait for the whole year to finish before we can.

Speaker Change #118: Conclude anything whether that Delta was finally delivered along with it but I mean, the reality is that these machines are definitely performing at a high appeal at the older machines.

Kailash Vaswani: So I would say Mahip also there is typically a seasonality in our receivables, because billing starts to go up quite substantially in the high wind months, and the receivables tend to come in on a more even basis. It seems for seasonality, not any changes. No, not really.

Speaker Change #118: Okay and the other thing a platform so a lot more visible.

Solar modules.

Speaker Change #119: To be honest I haven't again track that but didnt live data whether in fact, the new modules like giving higher pls or not.

Unknown Executive: I'll jump back in the queue here. Thanks.

Speaker Change #120: So let me get back to you on that.

Speaker Change #120: Oh.

Speaker Change #121: I mean, the fact is along the new projects are now bifacial. Just so you know they will therefore definitely give a higher pls.

Kailash Vaswani: Your next question comes from Angie Stoyzinski with seaport. Thank you. So my first question is about the wind PLS coming week, and I understand that there is some weather variations. I'm wondering in the US, we're having more and more examples of issues with the turbines on shore wind turbines. I'm just wondering if the on the performance of your wind assets has anything to do with any equipment issues, or is it just the weather?

Speaker Change #122: Got it.

Paul: Thanks, Paul.

Yeah.

Speaker Change #124: Yeah. So so that you know we'll have to we can just give you an off the coffee back we'll have to look at the performance over at least a year and then we'll have to also look at the you know.

Speaker Change #124: The difference in location from location and then sort of do some analysis and control.

Speaker Change #124: What exactly the differences.

Speaker Change #124: Yeah.

Kailash Vaswani: It's just the weather. There is no wind turbine performance issue. In fact, our performance of wind turbines has been as per our expectation across all the turbine models that we have. And you know, we have turbines from various different suppliers, both Indian and international. So we haven't seen any systemic issue there. It's just really been the wind.

Speaker Change #125: Excellent. Thank you.

Speaker Change #126: Your next question comes from my colleagues that with 91.

Maheep Mandloi: Your next question comes from Maheep Mandloi with Mizzou Who.

Speaker Change #127: Alright, Thanks for taking my question I know you you answer earlier on briefly on the on the receivables.

Maheep Mandloi: Hey, hello, thanks for taking the questions here.

Maheep Mandloi: Maybe just following up on Justin's question on the module sales, could you just talk about the timing of that 600 megawatts if there's something you kind of like plan to do this fiscal year or next?

Unknown Executive: And could we kind of think of that as a programmatic, just look at the production and your needs and everything else kind of assuming that it's sold in the Indian markets?

Speaker Change #128: But could you just add a bit more color since during the quarter. It seemed like there was an increase in both receivables and payables.

Speaker Change #129: And particularly on the receivables because we were shipping improved improved collections and looking at the same period last year, we don't necessarily see the same seasonality.

Kailash Vaswani: And if you think about your assumptions, like the long term assumptions about the wind PLS, have you sort of tweaked them? Are you lowered them just to account for those relatively disappointing PLS that we have seen in the last couple of years? We have done that, Angie, so for all the future forecasts and the bits that we are doing, we have significantly, you know, changed the methodology. So basically, the point is the following that if you, you know, if you take a longer history, then the forecast for the future ends up being higher.

Speaker Change #130: Yes, so see how some of the people that are concerned it's a function of you know the Capex program and some payments would have become due on account of the investments that we're making and those will keep getting cleared all of you know sometimes a customer may give us a great period, and who didn't take an agency. They mean discounted because we would like.

Unknown Executive: Yeah, so in terms of timing, you know, it's going to be a function of, you know, the production cycle that we are following.

Unknown Executive: Most of it is going to be back-ended towards the end of the financial year and some part of it will slip into the next financial year also.

Unknown Executive: So that's where it is.

Unknown Executive: And again, you know, we have set up this entire capacity for our captive requirements.

Unknown Executive: So largely, we would prioritize that to meet our ITP solar business requirements.

Unknown Executive: And, you know, if there's an opportunistic play there in terms of better margins, then we may look to sell some of these modules to third-party customers.

Unknown Executive: Again, you know, we – it's early days, so we are not really giving any guidance on that till we, you know, stabilize on terms of what our requirements are likely to be and how much surplus we will have, you know, and what opportunities are available to monetize that.

Unknown Executive: Kailash, if I may just add to that, if you look at how much we are going to be producing this year in terms of setting up project capacity of solar and how much we have in terms of production capacity on the manufacturing side, I think it's fairly clear that we will be selling some amount into the market on a regular basis going forward.

Unknown Executive: The only thing is it depends obviously on when our requirements are versus when the production will be happening, but you should assume that there will be a chunk of sale that will happen from a manufacturing business into the market.

Unknown Executive: And just for you to know, there are two kinds of sales, obviously there are pure module sales only and then there are module sales along with sales, and those have different realizations given the supply demand for modules and supply demand for cells and so that's really I think how you should think about it.

Unknown Executive: And just for that, like, seeing any interest from other markets outside of...

Unknown Executive: India?

Unknown Executive: Yeah, we are seeing interest.

Unknown Executive: At this point, you know, we are waiting for our cell plant to get commissioned, which will happen later this financial year.

Kailash Vaswani: If you take the more near-term years and base your forecast off of that, then the projection ends up being a little bit lower. So if you follow the traditional methodologies of using the 25 years of data, you'll end up typically with a higher PLF. So we are beginning now to give a little bit more weightage to the more recent years, so that our future forecasts are more conservative than they would have been.

Unknown Executive: And then, of course, there'll be a period of stabilizing.

Unknown Executive: And I think once all of that is done, then we will be in a position to start supplying cells into the markets, any markets, either the domestic content requirement market in India or the export market.

Speaker Change #131: And then we'd be boots, which may Shaw.

Unknown Executive: So I would imagine that will probably start happening from the next financial year onward.

Unknown Executive: Karan, just maybe one small modeling question or housekeeping, the DSO increased a little bit this quarter, I think last quarter we were expecting it to be flatter shot down, is this Telangana or anything else kind of impacting that?

Speaker Change #132: One of the tables is concerned yes, there has been an increase which has happened quarter on quarter, but again year on year, there's been an improvement so last year at 414 days this year. It is.

Speaker Change #132: So whatever 80 days within our boats.

Speaker Change #132: So as I said earlier.

Maheep Mandloi: So, it's mostly just a quarterly distribution because, you know, the quarter one, you know, revenues were a little lesser compared to what the receivables were.

Speaker Change #133: And on account of.

Unknown Executive: So, that's why the ratios are a little bit higher, but it's nothing significant. So I would say, Maheep, also there is also typically a seasonality in our receivables because billing starts to go up quite substantially in the high wind months and the receivables tend to come in on a more even basis.

Speaker Change #133: The fact that even though the first quarter the revenue.

Unknown Executive: Good, it seems more seasonality, not any changes and... No, not really.

Unknown Executive: Not, not, not really.

Unknown Executive: I'll jump back in the queue here.

Speaker Change #133: You can go against what might be some trailing 12 months revenue. So again first quarter being lesser maybe there'll be some impact on account of.

Kailash Vaswani: I should also add that none of the third party wind forecasting agencies have made that. So, you know, we sort of are being more conservative than where the market is right. Now. And even for budgeting purposes, therefore, we've reduced our year-on-year forecast as well.

Maheep Mandloi: Thanks.

Speaker Change #133: <unk> receivables largely constant.

Operator: Your next question comes from Agnieszka Storozynski with Seaport.

Agnieszka Storozynski: Thank you.

Speaker Change #133: I also want to reiterate that there is no significant impact.

Agnieszka Storozynski: So, my first question is about the wind PLFs coming week, and I understand that there is some weather variations, but I'm wondering, in the U.S., we're having more and more examples of issues with wind turbines, onshore wind turbines, and I'm just wondering if the underperformance of your wind assets has anything to do with any equipment issues, or is it just the weather?

Agnieszka Storozynski: It's just the weather.

Unknown Executive: There is no wind turbine performance issue.

Unknown Executive: In fact, our performance of wind turbines has been as per our expectation across all the turbine models that we have.

Unknown Executive: And you know, we have turbines from various different suppliers, both Indian and international.

Unknown Executive: So we haven't seen any systemic issue there.

Speaker Change #133: <unk>.

Agnieszka Storozynski: It's just really been the weather.

Unknown Executive: So, if you follow the traditional methodologies of using 25 years of data, you'll end up typically with a higher PLF.

Speaker Change #133: Or any delays and we are seeing with the new deal because all of them have been fairly prompt and making their payments, which are due to us.

Agnieszka Storozynski: And if you think about your assumptions, like the longer term assumptions for the wind PLFs, have you sort of tweaked them, i.e.

Unknown Executive: So, we are beginning now to give a little bit more weightage to the more recent years, so that our future forecasts are more conservative than they would have been.

Agnieszka Storozynski: lowered them just to account for those, you know, relatively disappointing PLFs that we have seen over the last couple of years?

Unknown Executive: I should also add that none of the third-party wind forecasting agencies have made that shift.

Unknown Executive: We have done that, Angie.

Unknown Executive: So, you know, we sort of are being more conservative than where the market is right now.

Unknown Executive: Thank you for joining us.

Unknown Executive: So, for all the future forecasts and the bids that we are doing, we have significantly, you know, changed the methodology.

Unknown Executive: And even for budgeting purposes, therefore, we've reduced our year-on-year forecast as well.

Unknown Executive: Thank you.

Unknown Executive: So, basically, the point is the following, that if you, you know, if you take a longer history, then the forecast for the future ends up being higher.

Agnieszka Storozynski: Okay, and then secondly, again, just a comparison to what's happening here in the U.S. on the renewable side.

Unknown Executive: By the end of this financial year, so let's say in the next, as I said, next two, three months, we should start seeing the production start to happen.

Unknown Executive: If you take the more near-term years and base your forecast off of that, then the projection ends up being a little bit lower.

Agnieszka Storozynski: I mean, there's also discussion about data centers and co-locations and renewable power feeding into those, you know, high-tech users.

Unknown Executive: And then there'll be a ramp up period, which I presume will last a few months, but certainly the production will start, you know, this year itself, this calendar year itself.

Sumant Sinha: Okay, and then, secondly, again, just the comparison to what's happening here in the US on the renewable side. I mean, there's also discussion about data centers and co-ocations and renewable power feeding into those, you know, high-power tech users. Is that a phenomenon that you actually see in India?

Unknown Executive: Is that a phenomenon that you actually see in India?

Unknown Executive: And then after that, there'll be a period of stabilization and ramp up.

Unknown Executive: I mean, maybe not now, but going forward, and is that, you know, the type of business that could give you premium margins for renewable power?

Unknown Executive: And then from next financial year, we should be able to be in good shape to deliver most of it.

Speaker Change #133: Yeah.

Unknown Executive: Yeah, so for sure, Angie, all of that is feeding into the overall aggregate power demand, which is growing at 7 to 8% a year in India right now.

Unknown Executive: And how is the transmission tie-up for the 1.5-2GW that you are looking to commission this year?

Unknown Executive: And just a word about the overall demand supply situation in the country.

Unknown Executive: Is that all tied up now?

Speaker Change #134: Okay. Thank you and then my second question was just on the recent type for the 20th 26 bonds and.

Operator: Your next question comes from Amit Bhinde with Morgan Stanley.

Unknown Executive: At this point, you know, we are not able to meet the power demand growth.

Unknown Executive: Yeah, so Puneet, all of our transmission, and when you say transmission, you mean, I presume, the interconnecting to the grid? The connectivity, yes.

Amit Bhinde: Sir, my question...

Unknown Executive: So far, we've had certain excess capacities on the coal side. But a lot of those capacities now have got exhausted with the demand growth that we've witnessed.

Unknown Executive: Yeah, so all of that is fully tied up, Puneet, not just for this capacity to be commissioned this year, but for our entire capacity going out for the 20-22GW that we have won altogether. So, almost for the entire capacity, our transmission and connectivity is tied up.

Amit Bhinde: As of now you have already showed 1 gigawatt in F24 internal consumption and with that what is the kind of cost and realization that you are approximating?

Unknown Executive: Coal capacity additions are quite limited in India because we just don't have an EPC slash equipment market that can add coal capacities beyond a certain speed.

Unknown Executive: And the important thing to note is that over and above that, we have some excess capacities that we have blocked via the mechanism that is allowed in India. So we have a few gigawatts excess over that, beyond the 20-odd gigawatts that we have one right now.

Amit Bhinde: and the kind of margin that you can make on it, EBITDA margin and the pattern, of Balpak.

Unknown Executive: And so renewables really is the only other alternative, which is going at a certain pace. And until that pace steps up, you will see deficits in the market and therefore higher merchant prices.

Unknown Executive: So on the connectivity front, I think we've been very proactive, about getting connectivity in the best substations.

Unknown Executive: The end.

Unknown Executive: And that's really what we are seeing right now overall in the market.

Unknown Executive: And I think a little bit underappreciated fact is that it's those connectivity applications in the better substations that will allow us to generate and drive higher profitability in future, which we have done, I think, more co-activities in the last couple of years, yeah.

Unknown Executive: Yeah, so I'm saying that these, these sales are internal.

Puneet Gulati: Your next question comes from Puneet Gulati with HSBC.

Unknown Executive: In terms of those transmission connectivity, are these also coming in schedule or in line with your commissioning capacity or could there be a risk of delay, something that we experienced in the last fiscal year?

Unknown Executive: So again, you know, we are not reporting any numbers on them right now.

Puneet Gulati: Thank you so much.

Unknown Executive: So, you know, the thing is that every substation, there's pretty good visibility on when the transmission contractor is likely to commission the substation. And obviously, the more near-term the commissioning date is, the more the certainty of that date being met is.

Unknown Executive: But obviously, you know, we target, again, on a transfer pricing basis, a certain margin that we charge to these businesses, but then eventually everything gets capitalized.

Puneet Gulati: The first question is on the solar cell capacity.

Unknown Executive: And the more future out it is, the less the certainty.

Puneet Gulati: Puneet Gulati, your line is open.

Speaker Change #135: If you could just not any any color on the purpose of those proceeds.

Unknown Executive: So it gets, you know, we get a little bit basically capitalize the lower cost because in consolidation everything gets knocked.

Puneet Gulati: Can you talk about where are you in that journey?

Unknown Executive: But by and large, within a three to max six-month time period, for projects that are coming up for three, four years later, connectivity does tend to get done.

Puneet Gulati: Thank you for the follow-up.

Unknown Executive: But I think your question...

Unknown Executive: When should we expect commissioning for the solar cell capacity?

Unknown Executive: So, we're not seeing delays more than that.

Puneet Gulati: My question is if you can talk a bit about your experience with respect to the recently commissioned solar and wind plants in terms of what kind of sneer you are experiencing there, both for wind and solar.

Unknown Executive: Any idea on that?

Unknown Executive: Yeah, so we're very close to getting it to a point of getting the first cells out.

Puneet Gulati: And of course, we are able to manage our own construction timelines to be in sync with what we are seeing happening on the transmission, you know, construction timeline.

Unknown Executive: So on solar, Puneet, there has been no issue in that the PLFs are, even for the older projects and for obviously the newer projects as well, are pretty much in line with what we had assumed.

Unknown Executive: See we are targeting a certain margin which is lesser than 10% because it's all internally captive.

Unknown Executive: And I would say in the next few months, you should be able to, we should be able to start seeing, you know, the initial trial production run start.

Operator: Thank you so much and all the best.

Unknown Executive: As far as when PLFs for newer projects is concerned, you know, the projects that we have commissioned now, these forecasts were made four years, five years ago, when we were following a little bit more the older methodology, which we have subsequently changed.

Unknown Executive: But I'll tell you what, see, the question is that for us, the margin on the transfer pricing doesn't really matter because as Kailash said, it gets consolidated, right?

Unknown Executive: And then, of course, there will be a period of stabilization, as you know, Puneet, because obviously cells is a little bit more complex than modules. Our expectation is that by the end of this financial year, the cell plant will be in reasonably good shape in terms of its output, and so by next financial year we should be able to connect to you.

Uma Menon: Your next question comes from Uma Menon with Bairnfield.

Speaker Change #136: So it is again for you Maria.

Unknown Executive: So, it is again, you know, for, you know, repaying some other debt within the system.

Unknown Executive: Kailash Vaswani, Uma Menon, Renew Energy, But we don't have enough of a report.

Unknown Executive: What we are, however, doing is we will be starting at some point in the near future to start reporting the P&L of the solar manufacturing business separately, assuming an arm's length transfer pricing between the two businesses. Okay, so that's something that we're going to start doing at some point in the future.

Unknown Executive: Nithyanandam.

Uma Menon: Hi, thank you for taking my question.

Unknown Executive: Yes, but I want to understand in the real life scenario, what are the real life scenarios?

Unknown Executive: Right and sorry one more point on this one, the EBITDA margin as you said you would like to keep it below 10% so would it be somewhat equivalent in the external sales as well?

Uma Menon: My question was regarding the short-term power sale that you had mentioned that happened in Q125.

Unknown Executive: So, you see, we'll have to wait for a whole year to finish before we can assess.

Unknown Executive: or would it differ?

Uma Menon: Can you tell, let us know what part of it, what part of that made up the revenue or the EBITDA?

Unknown Executive: But in general, the PLFs of these new machines would have been at least 10 to 15% higher than the older machines, just given the nature, the more sophistication of these machines and their higher megawatt and structural configuration.

Speaker Change #137: He brings some other date within the system.

Unknown Executive: We will be very opportunistic in those cases.

Unknown Executive: Like how much of that was a part of the revenue or the EBITDA in the quarter?

Unknown Executive: So we should be expecting a higher PLF, but we'll have to wait for the whole year to finish before we can conclude anything, whether that delta was finally delivered or not delivered. I mean, the reality is that these machines are definitely performing at a higher PLF than the older machines.

Unknown Executive: No, it does differ materially, it does differ materially, yeah.

Unknown Executive: So what chain were you referring to?

Unknown Executive: And does this thing apply for solar modules as well?

Unknown Executive: Kailash Vaswani, Puneet Gulati, Nathan Judge, Kedar Upadhye, Sumant Sinha, Amit Bhinde, Nikhil Nigania, Nathan Judge, Kedar Upadhye, Uma Menon, Renew Energy, No, not yet.

Unknown Executive: The Income Policy.

Unknown Executive: So it is largely being done for that purpose.

Unknown Executive: To be honest, I haven't, again, tracked that particular data, whether in fact the new modules are giving higher PLFs or not, so let me get back to you.

Speaker Change #138: So it is largely being done for that purpose.

Unknown Executive: Simply because, you know, that bid has to happen.

Unknown Executive: So, you know, we have in the RTC project, we have around 400 megawatt.

Unknown Executive: I mean the fact is that all the new projects are now bifacials, so you know they will therefore definitely give a higher pay.

Sumant Sinha: I mean, maybe not now, but going forward, and is that, you know, the type of business that could give you premium margins for the renewable power in your build? Yes, so for sure, Angie, all of that is feeding into overall aggregate power demand, which is going at 78% a year in India right now. And just a word about the overall demand supply situation in the country, at this point, you know, we are not able to meet the power demand growth.

Unknown Executive: I mean, various bids have to happen that we'll have to win first.

Unknown Executive: And in the peak power project, we have around 300 megawatt, which is currently on the basis of merchant sales.

Unknown Executive: Correct, so that's the benchmark point in this one, how big that...

Unknown Executive: And then we'll have to see basis that how much capacity we need to allocate for that.

Unknown Executive: I mean, the 400 megawatt of solar, 300 in RTC, 274 in RTC, peak power is wind, and another 300 in RTC is wind.

Unknown Executive: Yeah, so that, you know, we'll have to, we can't just give you an off-the-cuff feedback.

Unknown Executive: Right, right, Kodak, yeah.

Unknown Executive: So all of this is currently on the basis of merchant we are selling the power.

Unknown Executive: We'll have to look at the performance over at least a year.

Puneet Gulati: Your next question comes from Puneet Gulati with HSBC.

Unknown Executive: And in terms of the breakup of that, you know, we can we can circle back.

Unknown Executive: And then we'll have to also look at, you know, the difference in location from location, and then sort of do some analysis and conclude.

Unknown Executive: What exactly the difference is.

Speaker Change #139: Thank you that was all my questions.

Puneet Gulati: Thank you so much.

Operator: Your next question comes from a callee Smith with 91.

Unknown Caller: Thank you.

Unknown Caller: Hi, thanks for taking my question.

Maria: Thank you.

Unknown Caller: Those were all my questions.

Unknown Caller: I know you answered earlier on, briefly on the on the receivables, but could you just add a bit more colour because during the quarter, it seems like there was an increase in both receivables and payables, particularly on the receivables, as we were assuming improved collections and looking at the same period last year, we don't necessarily see the same seasonality.

Speaker Change #141: There are no further questions at this time that does conclude our conference for today. Thank you for participating you may now disconnect.

Operator: Thank you.

Operator: There are no further questions at this time.

Unknown Caller: Yeah.

Unknown Executive: So, see, as far as the payables are concerned, it's a function of, you know, the CAPEX program and, you know, some payments would have become due on account of, you know, the investments that we are making.

Unknown Executive: And those, you know, keep getting cleared off.

Operator: That does conclude our conference for today.

Unknown Executive: You know, sometimes the customer may give us a credit period and, you know, they'll take an LCA, they may discount it.

Unknown Executive: Because of that, you know, there will be payables which may show up.

Operator: Thank you for participating.

Unknown Executive: As far as payables is concerned, you know, yes, there has been an increase, which has happened quarter on quarter.

You may now disconnect.

Unknown Executive: But again, year on year, there's been an improvement. So, last year, it was 114 days. This year, it is, you know, below or around 80 days or thereabouts.

Unknown Executive: As I said earlier, you know, it's mostly on account of, you know, the fact that, you know, the first quarter, the revenue, you know, you calculate DAS on the basis of trailing 12 months revenue.

Unknown Executive: So, again, you know, first quarter being lesser revenues, there will be some impact on account of that because receivables are largely constant.

Unknown Executive: Also, I'll reiterate that, you know, there is no significant impact that we are seeing or any delays that we are seeing with any of the offtakers. All of them have been fairly prompt in making their payments, which are due to.

Unknown Caller: Okay, thank you.

Speaker Change #141: Okay.

Unknown Caller: And then my second question was just on the recent tap for the 2026 bonds.

Unknown Caller: If you could just add any colour on the purpose of those processes.

Speaker Change #141: Yeah.

Sumant Sinha: So far, we'd had certain excess capacities on the coal side, but a lot of those capacities now have got exhausted with the demand growth that we've witnessed. Coal capacity additions are quite limited in India because we just don't have an EPC-slash equipment market that can add coal capacities beyond a certain speed. And so, renewables really is the only other alternative, and which is going at a certain pace. And until that pace steps up, you will see deficits in the market and therefore higher merchant prices. And that's really what we are seeing right now overall in the market.

Speaker Change #141: Yeah.

Speaker Change #141: Okay.

Yeah.

Speaker Change #141: Yeah.

Unknown Executive: Okay, thanks.

Speaker Change #141: Okay.

Speaker Change #141: Yeah.

Speaker Change #141: [music].

Speaker Change #141: Okay.

Speaker Change #141: Yes.

Puneet Gulati: Your next question comes from Panit Galati with HSBC. Yes, thank you so much. My first question is on the solar cell capacity. Can you talk about where are you in that journey? You should be expecting conditioning for the solar cell? Yeah, so we're very close to getting it to a point of getting the first cells out. And I would say in the next few months, you should be able to, we should be able to start seeing, you know, the initial trial production run start.

Speaker Change #141: Okay.

Puneet Gulati: And then of course, there will be a peer of stabilization as you know, Panit because obviously cell cells is a little bit more complex than modules. Our expectation is that by the end of this financial year, the cell plant will be in reasonably good shape in terms of, if the out, in terms of its output. And so by next financial year, by the end of this financial year. So, let's say in the next or I said next two, three months, we should start seeing the production start to happen.

Speaker Change #141: Yeah.

Speaker Change #141: Yeah.

Speaker Change #141: Yeah.

Speaker Change #141: Yeah.

Speaker Change #141: Okay.

Puneet Gulati: And then there'll be a ramp up period which I presume will last a few months, but certainly the production will start, you know, this year itself, this calendar year itself. And then after that, there'll be a peer of stabilization and ramp up.

Puneet Gulati: And then from next financial year, we should be able to be in good shape to deliver most of the capacity. And how the transmission tire for the one and a half to be covered that you are in the commission this year. Is that all tied up now? Yes. So, Panit, all of our transmission and when you say transmission, you mean I presume the interconnect into the grid. So, all of that was fully tied up, Panit, not just for this capacity to be commissioned this year, but for our entire capacity going out for the 2022 gigawatts that we have all together.

Speaker Change #141: Yeah.

Speaker Change #141: Yeah.

Speaker Change #141: [music].

Puneet Gulati: So, almost for the entire capacity our transmission and connectivity is tied up. And the important thing to notice that over and above that we have some excess capacities that we have blocked via the mechanism that is allowed in India. So, we have a few gigawatts excess over that beyond the 20 odd gigawatts that we have won right now. So, on the connectivity front I think we have been very proactive about getting connectivity in the best substations.

Puneet Gulati: And I think a little bit underappreciated fact is that it is those connectivity applications in the better substations that will allow us to get generate and drive higher profitability in future projects. Which we have done I think we have co-activity. So, you know the thing is that every substation there is pretty good visibility on when the transmission contractor is likely to commission the substation. And obviously the more near term the commissioning date is the more the certainty of that date being met is.

Speaker Change #141: Okay.

Puneet Gulati: And the more future out it is the less the certainty. But by and large within a 3 to 6 months time period projects that are coming up for 3 or 4 years later connectivity does tend to get done. So, we are not seeing delays more than that. And of course, we are able to manage our own instruction timelines to be in sync with what we are seeing happening on the transmission you know construction timelines.

Unknown Executive: Thank you. Thank you so much.

Unknown Executive: And for this we have not seen any delays by the way just if that was also something that you were looking at.

Unknown Executive: You are next question comes from in my name I am at that scene.

Unknown Executive: So, hi. Thank you for taking my question. My question was regarding the short term power sale that you had mentioned that happened in Q1 25. Can you tell let us know what part of that made up the revenue or the EBITDA like how much of that was a part of the revenue or the EBITDA and the quota. So, what scale were you referring to? The term power sale. Yeah. Yeah, I got that.

Unknown Executive: Yeah, I am sure. So, you know we have in in the RTC project we have around 400 megawatt. And in the peak population we have around 300 megawatt which is currently on the basis of emergencies. I mean the 400 megawatt of solar, 300 in RTC, 274 in RTC peak power is wind and another 300 in RTC is wind. So, all of this is currently on the basis of merchant we are selling the power. And in terms of the breakup of that we can we can search it back.

Unknown Executive: Sure. Thank you.

Kailash Vaswani: Your next question comes from Annette Bin with Morgan Stanley. Sir, my question was on the solar modi manufacturing front. As of now, you have already showed one gigawatt in F-24 internal consumption. With that, what is the kind of cost and realization that you are approximately seeing? And the kind of margin that you can make on it, EBITDA margin and the part margin of ballpark figures. So, I am saying that these sales are internal.

Kailash Vaswani: So, again, we are not reporting any numbers on them right now. But, obviously, we target, again, on a transfer pricing basis of certain margins that we charge to these businesses. And also, but then eventually everything gets capitalized. So, it gets, you know, we get, we basically capitalize the lower cost because in consolidation, everything gets normal. Right, right. But, I think you have a question. Higher, like, height in EBITDA margin or mid-teen or, say, low-teen EBITDA margin kind of.

Kailash Vaswani: Any idea on that? I do think you can give us. See, we are targeting around, you know, certain margin, which is less than 10%, because it's all internal captive. But, I tell you what, see, the question is that for us, the margin on the transfer pricing doesn't really matter, because at scale, I said it gets consolidated. Right.

Kailash Vaswani: What we are, however, doing is, what we are, however, doing is, we will be starting at some point in the near future to start reporting the PNL of the solar manufacturing business separately, assuming an arms length, transfer pricing between the two businesses. Okay, so that's something that's something that we're going to start doing at some point in the future. Right. And, sorry, one more point on this one. The EBITDA margin, as you said, you would like to keep it below 10%.

Kailash Vaswani: So, would it be somewhat equivalent in the external sales as well, or would it defer materially? No, that would be very opportunistic in those cases. No, it does defer materially. It does defer materially, yeah. Right. Got that. And, just another question is, I mean, any visibility on the capacity that you have to put out for IOCLGB on green origin? No, not yet. Simply because, you know, that bid has to happen. I mean, where is bid has to happen that we'll have to win first, and then we'll have to see basis that how much capacity we need to allocate for that GDP. Right. Got that.

Unknown Executive: Two other questions.

Nick Galati: Thank you. Your next question comes from Nick Galati with HSBC. Can I, Galati, your line is open? Yeah, thank you. Thank you for the follow up.

Kailash Vaswani: My question is if you can talk a bit about your experience with respect to the recently commissioned solar and windman in terms of what kind of new of your experience in here? And, and... So, on solar Puneet, there has been no issue in that the PLS are even for the older projects and for obviously, therefore, the new projects as well are pretty much in line with what we had assumed. As far as when PLS for newer projects is concerned, you know, the project that we've made a commission now, these forecasts were made four years, five years ago, when we were following a little bit more the older methodology which we have subsequently changed.

Kailash Vaswani: Okay, so, but also what's happened is the machines types have changed a lot because these are the machines that we now commissioning are three plus megawatt machines with much higher habits and so on. So, the PLS of these new machines are there for higher, but we don't have enough. So, we'll have to wait for a whole year to finish before we can assess, but in general, the PLS of these new machines would have been at least 10 to 15% higher than the older machines.

Kailash Vaswani: Just given the nature, the more sophistication of these machines and their higher megawatt and structural configuration. So, we should be expecting a higher PLS, but you know, we'll have to wait for the whole year to finish before we can conclude anything, whether that delta was finally delivered or non-delivered. I mean, the reality is that these machines are definitely performing at a higher PLS than the older machines.

Kailash Vaswani: Okay, and there's saying a platform, solar modules. Solar modules, to be honest, I haven't again tracked that particular data, whether in fact the new modules are giving higher PLS or not. So, let me get back to you on that. Great. I mean, the fact is that all the new projects are now bi-facials. So, you know, they will therefore definitely give a higher PLS. Correct. So, that's the development title.

Kailash Vaswani: How big is that? Yeah. So, that, you know, we can't just give you an off-the-car feedback, we'll have to look at the performance over at least a year and then we'll have to also look at, you know, the difference in location from location and then sort of do some analysis and conclude what exactly the difference is.

Kailash Vaswani: Your next question comes from Akali Smith with 91. Hi, thanks for taking my question. I know you answered earlier on briefly on the receiver port, but could you just add a bit more color to this during the port, but there was an increase in both receivables and payables, particularly on the receivables. As we were assuming improved, improved collections and looking at the same period last year, we don't necessarily see the same seasonality.

Kailash Vaswani: Yeah. So, see, I found that the papers are concerned with the function of, you know, the capex program and, you know, some payments would have become due on account of, you know, the investments that we are making and those, you know, keep getting cleared off, you know, sometimes the customer may give us a great period and, you know, they'll take an L.C. They may discount it because of that, you know, there will be people which may show up.

Kailash Vaswani: As far as people's concerned, you know, yes, there has been an increase which has happened quarter on quarter, but again, year on year, there's been an improvement. So last year for 114 days this year, it is, you know, below around 80 days or thereabouts. So, as I said earlier, you know, it's mostly an account of, you know, the fact that, you know, the first quarter, the revenue, you know, you do, you calculate days on the basis of trailing 12 months revenue.

Kailash Vaswani: So, again, you know, first quarter, being lesser revenue, there will be some impact on account of that, because receibles are largely constant. But as I also reiterate that, you know, there is no significant impact that we are seeing or any delays that we are seeing with any of the off-takers. All of them have been fairly prompt in making their payments which are due to to us.

Kailash Vaswani: Okay, thank you.

Kailash Vaswani: And then my second question was just on the recent tap for the 2026 bonds, if you could just add any color on the past as per seats. So it is again, you know, for you know, reaping some other debt within the system, so it is likely being done for like boobies. Thank you. There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect. Dr. Paret, Dr. Kailash Vaswani, Dr. Kailash Vaswani, Dr. Kailash Vaswani[inaudible]