Ladies and gentlemen, good day and welcome to the Q3 FY23 results conference call of JSW Energy, hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhineet Anand from Emkay Global Financial Services. Thank you, and over to you, sir. Thanks, Lizann. Good evening, everyone. I would first like to thank the management for giving us this opportunity to host the call. Today we have with us from the management Mr. Prashant Jain, Joint Managing Director and CEO, Mr. Pritesh Vinay, Director of Finance, and Mr. Bikash Chowdhury, Head Investor Relations and Treasury, JSW Energy. We will have an opening remark from the management, post which we can have the Q&A. Over to you, sir. Thank you, Abhineet. Good evening, ladies and gentlemen, firstly wish you a very, very happy New Year to you and your family. The quarter gone by was a good quarter in terms of the power demand, wherein we saw 6.4% power demand growth year-on-year basis. For the nine months, the power demand was at robust at 10% year-on-year. In the month of January for the first 20 days, the power demand has been growing over 15%. All in all, we have been seeing very good trajectory in terms of the power demand. In terms of the generation, for the Q3, we saw the renewable generation up at 13.1%. For the nine months, 16.4%, demonstrating that the renewable growth is continuously improving. The total installed capacity is seen at 410 GW. During the quarter, we saw the capacity addition of 2.5 GW. For the first nine months, it is 11 GW, which is in contrast to the last year full capacity addition of 15.5 GW. It appears that we will be little short of the capacity addition as compared to the last year. In totality, we are having 165 GW of the renewable capacity, which is close to 41% of the total installed capacity. The merchant prices of the power were down by 7% for the quarter, which was at an average of INR 4.55 in the Q3, and volume was down 14% in the Q3. API 4 price was 37% higher at $227 per ton. This is what explains that, the quarter three was quite a different situation, where the price of the merchant power was down in spite of a robust 6.5% demand increase. The fuel price was 37% higher, and that's where the merchant volumes were dipped dramatically. However, in the current point, the thermal coal prices have moderated substantially, and now they are looming at a $170 per ton API 4 index. Coming to the operational performance of the company. During the quarter, the net renewable generation was up by 3% and net long-term generation was flat at 4.2 billion units. Overall, net generation was down by 5% at 4.3 billion units, primarily because there was a 230 million units lower merchant sales during the quarter. If you remember last year, October was a substantially super duper month for the country, where the prices were substantially higher and power demand was up at 12%. Because of the higher base effect and extensive rains, the power demand growth was negative in the October month this year. The other thing which as I explained that the tariff was lower and the fuel price was higher, because of which there was a delta of 230 million units lower merchant sales. During the first nine months, our generation is up by 2% at 16.8 billion units, which is primarily one more important thing is that in the first nine months, our merchant sales is up by 65% year-on-year, which is in excess of 4,460 billion units. The generation overall increase is only 2% because there was no schedule available for our unit number one from the Maharashtra. There the loss of the generation was 550 million units. Otherwise, on a long-term contract basis as well as in the short-term basis, the company has been performing exceptionally well. In terms of the EBITDA for the quarter was INR 727, which was down by 18% primarily due to the lower long term sales. For the nine months, the EBITDA is down by 5% at INR 2,936 crores. The cash profit during the quarter was INR 489 crores, which is a cash return on adjusted network of 20%, which we have been retaining. Our receivable trajectory is robust. It is down by 8% at 69 days. Our projects are progressing very well, and which will be commissioned on schedule, both for hydro as well as wind projects. We have also received LOA for our SECI contract for the battery storage project, which we will be building in next 18-21 months timeframe and which will be commissioned by October 2034. That's all from my side. With this, I open the forum for question and answers. Thank you. Thank you. Ladies and gentlemen, we now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue settles. The first question is on the line of Rahul Modi from ICICI Securities. Please go ahead. Thank you for the opportunity, sir. Just a couple of questions, you know, I had. First was with regard to, you know, some economics. If you could help us with the BESS project that you've won, you know, in terms of what would be the storage tariff, the cost and how will the entire economics work. That is first. Secondly, some progress on how over the next two, three years you mentioned that the Ind-Barath project would get commissioned over the next 24 months. Some details on that as to how do you see it scaling up and would you prefer because it's a low-cost project as of now. You would you prefer to sell it on merchant or you know, what would be the strategy like? Thank you. Thank you, Rahul. You know, this is a project which we are selling at a particular lease rent kind of a construct where 60% of the capacity is being sold for 12 years at INR 1,085,000 per megawatt per year. Sorry, per month. That's how it will be construed. After 12 years, the project will be transferred back to SECI. The 40% capacity is belonging to us, which we are hoping to contract with other DISCOMs as well as supplying these services into the ancillary market. There is a new ancillary market and a policy framework which has been opened up and where we see a better potential to earn better returns as compared to what we are getting from SECI, and that's how the project has been conceptualized. In terms of the returns, we can guide at this point of time that we will be getting close to mid-teen or little higher returns than that what we normally get in terms of any generation project. Since we are having number of levers available in front of us at this point of time. This is what we would like to give you the guidance. As the projects get commissioned and then other things and operating numbers starts kicking in, then we can see if there are some positive surprises. Base case we will be getting 15%-16% kind of a Equity IRR on the project. Just one follow-up on this. Basically, sir, the DISCOM will give you the grid power and during their peak hours we will supply it back to them after charging and discharging. As far as I am concerned, I am supposed to make it available. The storage capacity should be made available. Whether they want to use in one cycle, they want to use two cycles, which DISCOM will contract the capacity with SECI, we are not aware about anything at this point of time. How it is going to work is depending upon the DISCOM requirement. We make the system available. They can give me the power in the daytime and take it in the night time. They can give me the power in the night time, get take in the daytime. It depends on them. Got it. sir, any indicative tariff just to understand, you know, in such projects, what is the tariff which is coming out to be? It is again, depends on the business case and business model. The tariff will be different if the one cycle is used. If tariff will be just half of it, if it is two cycle which is used, tariff will be 1/3 if the three cycles are used. I hope you understand what I'm trying to explain to you. It's a two-hour storage system. If you are you can use up to eight, 10 cycles also, depends up to you. It's very difficult to talk about at this point of time that what is it will translate into the storage cost for the end user. It can fluctuate on the business case basis. Got it, sir. Sir, two more questions which I had, so one on the strategy and progress. How do you see it going through over the next 24 months or in Bharat, because it's a pit head plant. Secondly, sir, you know, how do you see the spread between the coal prices on imported basis and the merchant panning out for us, and overall market over the next six-12 months? Thank you. Merchant tariffs are strengthening, and they are now leaning in the range of INR 6-INR 6.5 on a daily basis. Fuel prices are moderating. That's the situation. You know the thermal coal is directly linked with the natural gas at this point of time because the natural gas prices, natural gas demand has been migrated to the thermal coal in Europe. Because of which thermal coal prices had been elevated since the Ukraine war came on the front. Now the natural gas prices have moderated, and they are back to the pre-war level. That is what is also reflecting in the thermal coal prices. Now, they are not as the pre-war level, but yet they are very close to that point at the number. If the natural gas prices continue to slide and then they go up to $3, I am quite confident on some point of time, the thermal prices, coal prices can also go to $100. That's the kind of a situation and merchant power prices are very tough to forecast. What I can see at this point of time that the power demand is very robust throughout the year, and then we are seeing substantial uptick in terms of the power demand, and that is what is reflecting in terms of the higher capacity utilization as well as the higher merchant tariffs. The spreads are better and we are seeing a higher merchant volume in the month of January, what we saw last January. I am seeing that there will be a good business case for merchant power producer the next couple of months. Right. Just last, some comments on the Barath acquisition. How do you see the progress being? Barath acquisition, our main purpose is to set the plant site and commission both the units. We have lot of options and opportunities available in front of us. One option is that the vertical integration for polysilicon manufacturing, which we have been contemplating and evaluating. Second option is also to look at certain captive requirements for the group for the thermal power for our Eastern India requirement. Third option is also the PPAs which lot of DISCOMs want to do for the thermal power, where there are various bids which have already been invited by the DISCOMs. We are evaluating each and every option, then accordingly we will be taking a call in the due course while this capacity is commissioned, which is a win-win for all the stakeholders. Right, sir. Thank you very much and all the best. Thank you. The next question is from the line of Atul Tiwari from Citi. Please go ahead. Yes, ma'am. Thank you a lot. For this battery storage system, how much is the CapEx for this 500 megawatt capacity? We will be disclosing. We will let you know. We are now firming up couple of orders. In the Q4 results, we will inform you the total CapEx. Okay, sir. Thank you. Thank you. The next question is on the line of Sumit Kishore from Axis Capital. Please go ahead. Sumit, your line is on the talk mode. Please go ahead. Good evening. My question is related to the acquisition of Mytrah RE assets. On the last call you had mentioned that you expected it to be completed or concluded before end of Q3 and the Lock-box date for the deal, you know, I believe it's first April 2022. What is the present status now? I agree that, we were expecting that, you know, there are 17 lenders and most of them are from the public sector. Sometimes few things happen in terms of the lender NOC beyond our control. Those things are most of the things are settled out. There are 17 lender. Out of 17 lenders, 15 NOCs have come, two are in pipeline, which are expected any time soon. Any time soon means within days, not in weeks. That's the only thing which is pending. The moment it happens, we will be in a position to complete the deal. As you know that (audio distortion) balance sheet comes to us from 1st April 2022 itself. However, the consolidation will take place on the date of closing. The P&L will not get consolidated from 1st April 2022? No, no. That will be whatever the adjustment will be done in the network and then gross blocks accordingly, the consolidation will happen from the date of acquisition. Okay. Is there any update that you have from the last call on your pump storage hydro initiatives? Those are moving fine right now. I must tell you that it requires a detailed project report is to be prepared. Based on that report, they need to be approved by the CEA. Also there are the public hearing is to be done to take environment clearance. There has to be the complete, you know, detailed engineering has to be done. All those things are going on on all the projects. As we have also mentioned in our presentation that the first project for our captive requirement at Vijayanagar will usually start the construction in the current calendar year. There we have already moved very advanced in terms of all kind of approval, and we have already floated tenders and other things. At some point of time during the calendar year, we will be, once we sum up the things, we will be going to the board and then start the construction immediately. However, before we are going to the board, we are doing all kind of a preparatory exercise, and this is what is going on in all the projects in parallel, whatever we have disclosed to the market for 7.8 GW, which is equivalent to 50 GWh of the project. Everywhere things are progressing well. Since all these are greenfield projects, all these activities are going on in parallel. Year-on-year, we will see that the different projects will be going on to the construction mode. Okay. Just finally, could you also tell us what is the status, you know, of the INR 195 billion with the PLI solar manufacturing? How close are we to, you know, the bidding stage and the final decision being taken? We are same as anybody else. We are working with the industry and then Government of India. As and when anything is in the final stage, we will be looking to participate into it and see that whether we are competitive to get something in that or not. Sure. Thanks a lot, and wish you all the best. Thank you. A reminder to the participants, anyone wishing to ask a question, please press star and one. We'll take the next question from the line of Abhineet Anand. Please go ahead. Yes, sir. My question is on the wind side. You know, the government has set up a target which, you know, from 40 GW that we presently are to around 140 or by 2030. As you know, solar has probably done better, as we have all seen in the last few years. I mean, how realistic are these numbers, first? Given that your capture rates in wind are better also, how do you know, feel that over the next few years, how these capacities can get ramped up? These projects are difficult to execute because of the nature of the project, because, you know, they are having, you know, spread over kilometers and kilometers for even a small project of 300 MW. That poses a lot of right of way and land acquisition challenges and approach issues as compared to the solar. That is one issue. Second issue is that the tariff which comes out with the wind project is much more as compared to the solar project because of the way the technology is there. That's where the more and more challenges come in terms of executing the PPA at those tariff and executing the project on ground. Government is mindful about this challenge. However, both needs to be seen differently because only with the solar you cannot have a grid stability as well as the profile of the renewable energy cannot be maintained. Wind is also required, hydro is also required. There has to be a blend which is required for the country as a whole, and similarly, thermal is also required. That's a step in the direction is positive that reverse bidding has been now contemplated that will be stopped and it will be a simple even line competitive bidding. We hope to see that if that brings little discipline into the project developers and then some prudence come in terms of the tariff and then it may become little attractive to get a better investment in the wind sector. Execution challenges will remain. Which needs to be seen that how much capacity can be added up at, on a yearly basis. Numbers are achievable. Timeline could be discussed that maybe a couple of year more. The numbers are achievable. Just on this, I mean, the suppliers which used to be earlier, I think because this whole, you know, whether it's Suzlon or Gamesa and some of the other players, you know, India has been adding like 1 GW- 2 GW, something like 2 GW or 3 GW. We have enough decent suppliers to go to a 7 GW, 8 GW or whatever, 5 GW type of market, do you feel? Yeah, yeah. Supplier is available because, that's not at all a constraint. The biggest constraint was the tariff. At the right tariff, the projects can be enough capital and enough equipments are available. However, the execution challenges will be still there. Okay. Thank you, sir. Which can be mitigated very well. Thanks. Thank you. The next question is from the line of Dhruv Muchhal from HDFC Mutual Fund. Please go ahead. Yeah. Thank you so much. Sir, just one quick clarification. This battery project. Sorry, can you raise, sir Muchhal. Sir, you're sounding very soft. Can you speak a bit loud? Is this better? Much better. Thank you. Sure. Sir, just wanted to check on the SECI battery project. The LOA is received. Do we still have to wait for the PPA before we start constructing or this is the final go ahead? I mean, there is full surety of offtake now. Yeah, yeah. Basically, the timeline starts for PPA to be signed. That's why in the previous question I have not asked, I have not answered the capital expenditure, numbers. That's where we are expecting all these things will be completed by the quarter of our Q4 result. Then, we will be placing the order accordingly. Correct. From our side we are all set and ready in terms of other things, financing or in terms of the other things. Got it. The final thing is just we are awaiting the PPA once that is done, the 18 to 24 months start from then. Yeah. 18 months start from there. Perfect. Thank you so much. Thank you. The next question is from the line of Atul Tiwari from Citi. Please go ahead. Yes, sir. Thanks a lot for the opportunity again. My question is on this 225 megawatt solar project. How much is the gross profit now that the project has been finally commissioned? What is the number? Would you be able to share that? Yeah. It's close to INR 1,100 and just over INR 1,100 crores actually. Yeah. Okay. Okay, thanks. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments. Thank you very much. Thank you, Abhineet, for the call. Have a nice evening. Bye. Thank you. Ladies and gentlemen, on behalf of Emkay Global Financial Services, that concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.