Ladies and gentlemen, good day and welcome to the India Grid Trust Q2 FY 2022 earnings conference call hosted by Edelweiss Securities Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please simply press zero by pressing star then zero on your touch-tone phone. I now hand the conference over to Mrs. Swarnim Maheshwari from Edelweiss Securities. Thank you, and over to you, sir. Yeah. Thanks, Nikita. Hi, everyone. On behalf of Edelweiss, I welcome you all to IndiGrid's Q2 FY 2022 earnings results. From the management today we have with us Mr. Harsh Shah, Chief Executive Officer; Mr. Jyoti Kumar Agarwal, Chief Financial Officer; and Ms. Meghana Pandit, Chief Investment Officer. I will hand over the call to Harsh for his opening remarks. Post which we'll have the Q&A session. Thanks and over to you, Harsh. Yeah. Thank you, Swarnim, and thank you, everyone, for joining on this meeting quarterly call. I would just add, Swarnim, I think from the management team there is 4th member who's there, who's Satish Talmale, who's Chief Operating Officer, so just adding that. To start with on slide number three, IGT's vision is to become the most admired yield vehicle in Asia. This has been the 18th quarter since listing, and we have consistently followed this vision with the pillars that are mentioned on the slide, which is a focused business model, value, stable growth, predictable distributions, and optimal capital structure. Based on this strategy over the last 18 quarters, we have reached the best and one of the largest power transmission leading platform today. This is on slide number five. Total assets under management stand today at INR 21,000 crore across 19 subscription DPCOs together. We have 52 revenue generating elements. 52 different revenue generating elements which have distinct revenues attached to it and have their own availability and generation capacities. We have approximately 7,530 km on 50 lines and 11 substations, transforming about 50,550 MVA transformation. We'll speak about solar, but we have as of now 100 MW of solar generation also in the portfolio which we acquired during COVID-19. Average residual contract life for our asset is about 50 years, and however, the assets are on boom basis, so we continue to own their inflation. In a similar simple terms, we have approximately 11,550 towers, which includes approximately four at 35,000 metric ton of steel and aluminum. Before we jump into the questions and comments, I would just speak a little bit about the key power sector trends that we are seeing and feeling in the system. Demand trend since COVID has moved, I would say, in a very buoyant trajectory, and we are very bullish about in general the consumption patterns of the country and it could really continue to grow considerably over next decade to come. This is something which provides for very strong requirement for a robust backbone to deliver the electricity in time wherever it is required in a reliable manner. On the supply side, I would say the coal prices that I'm sure all of you would have read about or heard about is a transient phase and it would pass and we do not think that that is a structural or a material structural issue which will impact our business in any manner. However, what this will or this has already started enabling within the regulatory circles as well as the ministry is to have a robust grid which will enable diverse source of power to deliver the electricity at different points of time in the country. That's something which is already shown very well by the internal ministry in terms of implementation of GNA, which is general network access, which we think would be able to be a successful one only if there is substantial increase of spending transmission side. The last one is the technological disruption that are taking place in the sector, whether it is solar or storage. We believe that is going to have a substantial impact on both consumption as well as where it is consumed and where it is sourced from. We as a provider of, I would say, grid to deliver from generation to consumer, we think there is going to be a substantially more investment in transmission to take place over next decade. Coming to the key quarter two highlights for the company. Our revenue and EBITDA both has grown 3% year-on-year and 9% year-on-year respectively. Our DPU has increased 6% year-on-year to INR 3.19 a unit versus INR 3 a unit which was there last year. We declared the increase in DPU earlier this year, and we are on track to deliver INR 8.75 a unit, which we had guided the market on. We could achieve this because the customer collections are really healthy and we had 105% collection in quarter two, which is in line with the seasonal trends that we have seen so far. We continue to maintain a well-capitalized balance sheet. In this quarter, our balance sheet size is about INR 21,400 crore, as we added INR 650 crore of solar assets. Our debt-to-EBITDA remains at 57%, which is significantly below the 70% cap and provides us sufficient headroom to grow. We are AAA by the three rating agencies and continue to maintain that. In terms of asset management, we have invested considerable amounts of time and effort over last year or so, and we are seeing that coming to fruition in form of higher availability, lower trips since inception, which showcases a higher reliability for our asset portfolio. In addition to that, we have invested into DigiGrid, as we spoke about in detail, which is transforming the portfolio management, the way we are managing our assets effectively. We've also purchased an emergency restoration system, which adds to our reliability because it allows us to restore towers in case of any force majeure events in a substantially faster manner. In line with our ESG goals, earlier this year, we launched a program called UBI and planted 60,000 trees in some of the substations. Many of them are fruit-bearing trees, which we believe will create employment as well as economic value for the communities that we operate in. On the policy side, new regulations over the last 4.5 years have been consistently evolved over, you know, different aspects of the format. The first one, what has happened this quarter, is that FPIs have been enabled to invest in debt securities issued by InvITs and REITs. We've been working with the regulators over the last couple of years on this, and this was passed recently, which will diversify our sources of borrowing. The lot size this is reduced to one since August 2021, which I'm sure all of you have read about. That is in quarter two. PFRDA has enabled pension funds to invest in debt securities. In all, general liquidity to both units as well as debt securities issued by InvITs which have been increasing over the period of time. I would have Satish Talmale, who is the Chief Operating Officer, to run you through our operating performance on slide number nine. Satish, over to you, please. Thank you, Harsh. Good afternoon, everyone. Quarter two operating performance was one of the best records we had in terms of overall performance and availability and reliability. We could continue to maintain availability of 99.8% across the portfolio against our normative availability target of 98% and maximizing in CP of 99.05%. This was the best performance. We also achieved the lowest trip s per line as one of the reliability indicator across the portfolio, which is at 0.1. As you can see on slide 10, the quarter-over-quarter performance was at 0.27 last year, and this quarter we achieved 0.10. With digitization, with a few projects like DigiGrid, and plus other couple technologies, we are trying to sustain our performance in more digital in our operating activities. Already we have implemented it across 95% of the portfolio with wide variety of assets, with GIS and AIS system and transmission lines. By end of this fiscal year, we will be completing across assets. As Harsh said, emergency preparedness is key objective to get ready for any unplanned situation. ERS has been deployed into portfolio, so it has enhanced our confidence to take care of any force majeure events and restore the power in as short as possible time. On SAC, we had a very good quarter and 66.9 others. We continued focusing on training and awareness programs. As you can see on the chart, the number of unsafe condition situations has dramatically increased. This means that it's very proactively the teams are identifying all the concerns and then taking the time and closing it proactively. This will definitely help us to achieve our various safety deliverables. On COVID-19, I think all focus towards more focus on making sure that all the operating teams and the team are vaccinated and at the same time not be complacent with the situation and get ready with all the appropriate preventive measures in place as well. Overall, we had a good operating performance, especially on the solar generation. We had one of the best generating plant in the area of the other solar park there. We are one of the highest yielding generating plant located in a solar asset. The PLF of 22.7% is the last one. With a generation of 50.1 million units. That's it talking to us. I think Jyoti take subsequent financial performance over here. Thanks, Satish. Good afternoon, everybody. I'm on slide 10, which talks about the financial performance for the second quarter. We clocked a revenue of about INR 548 crore this quarter and an EBITDA of INR 504 crore, which were a handsome increase on a year-on-year basis on the back of acquisitions and in line with the longer term trend. The NDCF generated this quarter was INR 224 crore. As mentioned by Harsh earlier, we've declared a dividend or DPU of INR 6.1875, which is in line with what we had guided at the beginning of the year, for the full year. This quarter saw healthy collections at 105%, which is in line with the longer term second quarter trend. The average for the second quarter for the last 5 years was about 100%. This particular year it was a little bit higher than the longer term average, but a little bit lower than what happened in the immediately preceding year. The collections saw an uneven trend. It was a bit slower at the beginning of the quarter, but more than caught up in the month of September. We saw the highest monthly collection over the last four years. Due to the healthy collections, we saw a significant decrease in the DSO days, down to 52 days compared to 81 days in corresponding quarter of the last year. I move to the next slide where we look at the details of the DPU. As mentioned, the DPU for this quarter is 3.1875. We are on track to meet the DPU guidance of INR 12.75 for FY 2022. The DPU comprises of all the three components this quarter, an interest amount of INR 1.86, capital treatment of INR 1.28, and five paisa dividend. The record date for the DPU is November 2, and the likely distribution date would be November 4. The dividend this quarter was higher than the last quarter of almost INR 5, and this is primarily because of the acquisition of FRV, the equity component of FRV. Combined with the INR 223 crore gross distribution for this quarter, we have distributed in excess of INR 2,500 crore since listing. We are on track to sort of continue to increase the DPU on a 3%-4% year-over-year growth. The next slide is the bridge between the EBITDA and the distribution. We had an EBITDA at SPV level of little bit higher than INR 500 crores, INR 507 crores, which translates to an NDCF at SPV of about INR 511 crores and a distribution of INR 223 crores. Other than the usual items of enhanced cost both at the SPV level as well as the IGP level, especially primarily at the SPV level, CapEx and some expenses and tax. The two highlight items are working capital movement as a reserve. On the back of robust collections this quarter we saw a positive movement of working capital of almost INR 23 crores. This is after accounting for an INR 25 crore net repayment into factoring. We did about INR 50 crore factoring in the first quarter. The factoring in the second quarter was only INR 25 crores. Despite the INR 25 crore, you know, net, you know, increase, we had almost INR 70 crores higher than the net increase due to factoring in this particular quarter. We also were able to add to the NDCF reserve marginally by INR 1 crore. We charged this quarter with an INR 150 crore NDCF reserve, and INR 1 crore got added, a little less than INR 1 crore. We entered the quarter at INR 116 crores of NDCF reserve. I move to the next slide. This is slide 13, which talks about our debt situation. We have a gross borrowings of about INR 12,700 crore as of September 30. Very well diversified book across NCDs as well as loans. Slightly higher skew towards NCDs, 54%, balance coming from bank loans. It's well diversified across a wide variety of investors, mutual funds, banks, and all types of banks, private as well as public, corporates, insurance companies, retail HNI. A very well diversified book. We raised about INR 850 crore of NCD in the second quarter at a marginal cost of 6.76%, which brought down our average cost of borrowing to 7.1%. Over the last one year we've been able to bring down our average cost by almost 75 basis points. Given the marginal cost is still lower than the average cost, there's still some room to go before, you know, we sort of hit the bottom of the average cost of debt curve. We're carrying a very robust cash balance in excess of INR 800 crores, which comprises of DSRA as well as the NDCF reserve. The DPU for this particular quarter is INR 223 crores. Our net debt to revenue, as mentioned earlier, is 57%. There's a fair bit of headroom before we come anywhere close to the 70% leverage cap. We have more than 74% of our borrowing, almost 74% of our borrowing is fixed rate borrowing. We are obligated towards the interest rate movements and a healthy EBITDA to interest ratio of in excess of 1.9 x. In terms of our repayment schedule, we've been able to even out the repayment profile, also term out the repayment profile. We have repayment less than INR 1,500 crores in all the years except for FY 2023, for which we are in advanced discussions with a handful of lenders lining up the refinancing much ahead of time. I'll now hand it over to Meghana to take through the next section of the presentation. Sure. Thanks, Jyoti. On slide number 14, where we compare ourselves with respect to, you know, total return basis. Total return as is reflected in terms of the distribution, plus the capital appreciation, that is reflected through price change. On the graph, we are comparing ourselves with pure debt instruments, which is reflected through the 10-year G-Sec bond as well as the 15-year G-Sec bond. As well as on the right-hand side of the graph, you can see that pure play equity indices like NSE 500, NSE Infra, BSE I, BG Nifty, et cetera. All put together, if you look at the total returns as well as the annualized returns since listing, IndiGrid has outperformed on a risk-adjusted basis. The bottom table talks about the beta, which is the metric, which reflects volatility in the price. While we have, you know, evidenced significant ramp up in the stock markets recently, which is reflected in all the indices, increasing on the total returns basis. If you look at the volatility and look at the risk-adjusted basis, IndiGrid has significantly outperformed all of them. Moving on to the next section, we'll take you in terms of how are we looking at FY 2022 and beyond. I'll request Harsh to give his comments on slide number 15, please. Thank you, Meghana. Coming to the outlook that we see for the rest of the financial year, and beyond, we divide it into two buckets. The first one being full-year growth. From the perspective of industry that I spoke earlier, we believe, there is gonna be a tremendous amount of investment that is gonna take place, in the, transmission space. We are seeing over INR 50,000 crore of interstate and another INR 24,000 crore of intrastate bids coming over next three to four years, which is gonna create a healthy pipeline for acquisition in IndiGrid. We are focused on acquiring the assets that we have lined up for, including GCLEPL, which is a framework asset. As and when it gets commissioned, we will conduct a diligence under the framework agreement with Sterlite Power and, look to acquire that. Third is we have also started evaluating bidding opportunities in power transmission with key partners to ensure that, we have an early entry into some of these, bidding that is taking place and which adds to our pipeline. We, you know, are focused that for the rest of the year, we are pretty much confident to deliver the INR 27.3 billion revenue and EBITDA should follow. On the balance sheet, we will continue to improve the balance sheet strength, because now we have raised the rights issue on early part of this year. Most of the restrictions that existed on raising debt have pretty much been mitigated by different regulatory bodies. Which is enabling us to diversify our sources of borrowing into longer tenors. The priority for us will remain for next year or next half year to reduce the interest costs and elongate tenor for the upcoming receipts which are coming. We see it not as a risk, but as an opportunity to refinance these loans which are up for refinancing in FY 2022 and 2023 and take advantage of lower interest rates. In terms of asset management, as we have focused on, we'll continue to invest in technology, whether it be DigiGrid or ERS or other technologies in place, with keeping in mind to ensuring our availability to the maximum and to maximize the intake, as well as ensure a world-class O&M and HSE practices across our footprint. In terms of the few policy initiatives which are still outstanding deals with respect to the tax anomaly on equity in InvIT, especially with respect to, long-term capital gains tax for InvIT, which is applicable for three years. Also, we are working with regulators and exchanges to ensure index inclusion happens for InvITs and REITs. We continue to invest more time and effort to ensure increasing awareness about IndiGrid and InvITs in general. We believe if all this is achieved by us and the company, we are on our path to deliver superior total returns, sustainable increase in DPU, and so on. With that, I will just take a pause, and Nikita, we can open for questions. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question, you press star and one on your touch-tone 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. Anyone who has a question at this time, please press star one on your phone. We will wait for a moment for the question queue members. We have the first question from the line of Rushabh Sharedalal from Pravin Ratilal Share and Stock Brokers. Please go ahead. Yeah, thanks for the opportunity and, congratulations. One question, you know, just to understand the business better. We have multiple assets in our portfolio, and you do mention that the average residual contract for the asset is 30 years. I basically just wanted to understand that, you know, basically our economic ownership in most of our assets is close to 100%, most of them, not all. What really happens after 30 years? Do we renew the contract or the asset goes out of the portfolio? What exactly happens to it? Just wanted to understand that. Sure. I think economic ownership is 100%, to be honest, in all assets, not just all assets; we have 100% economic ownership. All assets that we own today other than solar and one small asset, which is in a state project, have a contract which is perpetual in nature. What that means is that when the contract gets over for 35 years, subsequently, if these transmission lines are required, which we believe will be required to access power, there would be a renewal of contract under some mechanism. Whether it is going to be a cost plus mechanism or it is going to be a freshly discovered pricing mechanism, there would be some consideration for us to operate those lines. Because in the absence of that, we would be better off selling all the metal that in the first line. We believe most likely there is going to be a regulated return cost plus model beyond the original concession period that will continue. However, we'll have to wait and see what takes place. Considering the amount of assets that exist and the replacement value of those assets at that point in time will be multiple, we are confident that this will continue beyond the original contract period. Okay. Just correcting myself, I think you're right. One asset is currently valued on 20%. That's purely exceptional because that's a joint venture with Power. Right. Basically, you know, just correct me if my understanding is wrong, but you know, so the assets are owned by us and, the average period of those assets where they'll be in our portfolio is 30 years. But after that, if the contract is not renewed, then the asset will go out of the portfolio and you will be able to sell the metal and, recover the cost. Is that understanding correct, right? Understanding is correct. I'll just rephrase that asset will not go out of the balance sheet. Asset is still in the balance sheet. But instead of being as a transmission line, it will become 434,000 tons of metal, right? Because you're not using that asset anymore as a transmission line. Now you will monetize that. You will have cash in the balance sheet after monetizing that. But essentially, you know, asset remains in the balance sheet. Just the nature of asset will get changed. Right. Got it. Just a small request from our end. Actually, we have been communicating to the exchanges for a long time. If you know, to include InvIT into the fact that they can also be used for margins, as margins. If you can also, you know, at least drop a small kind of a communication to the- Sure. Exchanges, I think it would be very helpful for our investors as well. Just that's a request, not any kind of a- Yeah. No, no, we'll surely do that. Yeah. Thanks. Thanks a lot. All the best. Thank you. The next question is from the line of Sagar Sanghvi from Axis Capital. Please go ahead. Hi, Harsh. Congrats on good set of numbers. Only one question on the DPU front. How do you arrive at the benefits of DPU, whether it's interest or dividend or capital repayment? That's it from my end. Sure. Jyoti, would you like to answer that question? It is based on the operating profits that the company's individual SPVs are generating. They arrive at the NDCF at each entity level. Based on the nature of the way to upstream that cash from the SPV to the IGT for distribution onwards to DPU. There are two or three avenues that are available. One is of course the interest avenue, which is a function of the debt that IGT of the trust has as a loan into the SPV. The other is dividend, which is a function of whether there is profit to the SPV or not. The third is repayment of the loan. Now, it's a function of how much the operating cash flow has been generated and what are the avenues available of upstreaming that to the trust at the top for distribution in DPU. Based on you know these two factors, we try to optimize the distribution towards interest and dividend first. To whatever extent it's not possible because the cash flow is higher than what the interest can be charged based on the outstanding loan, we upstream as the repayment of the loan. That upstreaming of the repayment of the loan is then onward distributed to the investors as capital repayment. That's how the mechanics work. In this particular quarter, there were collections which were higher towards September. Because those were not, i t was not possible to distribute or upstream those high collections entirely by way of interest or by dividend. We had to sort of repay the loan which IGT had given to the SPV, and it got distributed as capital repayment. You would have some visibility on the interest repayment as well, right? In some particular quarters you have interest as dividend, and some quarters you have capital repayment as well. The question is, how, as an investor, should we look at going forward for next two quarters and FY 2023 as well? Yeah. For this particular quarter, there is a steady-state dividend upstreaming in one of our assets, which is BDTCL. There was a group petition that was filed which led to a position because of which the dividend upstreaming part was not possible to be done in this quarter. Probably it'll happen even in the next quarter. Thereafter, the steady-state dividend upstreaming, which will flow to DPU as dividend, will be maintained, reinstated. I think given that, based on current projections, we feel that about INR 0.70-INR 0.75 out of the INR 3.19 in every quarter should come as capital repayment. Now, what we try and do every quarter is optimize it to skew towards the interest and dividend portion as much as possible. It's not going to be, you know, hard fixed to the INR 0.70-INR 0.75. Based on current outlook, and subject to any further acquisitions, et cetera, it looks like a steady-state, you know, INR 0.70-INR 0.75 is likely to continue to come back as capital repayment. Okay. Can we assume if there's any volatility, it would be on the cash flow adjustment on the respective subsidiary or SPVs? Sorry, say that again. If there's any volatility in the mix, can we assume it has a cash flow adjustment in the respective SPVs? The P&L performance or you know the pure accounting performance volatility is not that high. These are all availability based revenues as you know. Very marginal volatility. Yeah, the collection-based volatility could be there. You know, at individual SPV level, maybe collections you know may be higher or lower based on how the overall collections are behaving. The P&L volatility not that much. Collections volatility could be there, yes. Got it. Thanks. That's it. Thank you. The next question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Hi, good evening, and thank you for the opportunity. Sir, just in continuation to earlier response, this excess cash that we generated at the operation level that we had to upstream, as per regulation, even 90% of this has to be paid back to unit holder or can this be used for something else also? 90%. Yeah, go on, Jyoti. Sorry. As per regulation, 90% of the cash flow or the NDCF which is generated at each individual SPV necessarily has to be upstreamed to the trust level, and 90% of that has to be necessarily distributed as DPU to the unit holder. Fair enough. Sir, in this quarter, this excess cash which got generated, this should have been over and above the INR 3 interest which we had earlier alluded to, right? Why is this compensation for interest and not over and above that? No, it's not like that, sir. You know, there are about 14, 15 SPVs. So depending upon which SPV got more cash to pay interest, possibly we would be upstreaming it as interest. But if, let's say, based on the outstanding loan and the outstanding interest, if there is more cash than what we can upstream as interest, then we'll have to upstream it in other ways, right? It could be either dividend, which is not possible because most of our SPVs are, at least from an accounting point of view, loss-making, or principal. We have no option but to upstream it as principal. Based on current visibility, like I said, that is likely to continue at least in the foreseeable future, somewhere around 70 paisa out of the INR 3.20 will come as principal repayment. Fair enough. That, sir, explains it a bit. This is based on the interest, sir. IGT would have given some loan to the SPV based on certain interest, and you'll be getting that money on an operating basis which you upstreamed up to the unit holders. Was the loan which has been given to the SPV come down or the interest has come down a bit with excess cash collection because this wasn't expected at least a quarter or two back. Why has this composition changed now? To be honest, you know, with the cash flow which has been collected at the operating level at some point of time would need to be distributed as capital repayment for sure. This particular quarter, the one anomaly is that, you know, the dividend which comes from one of our entities, which is BDTCL, that has not been upstreamed because of, you know, a provision that was made where there are no accounting profits to upstream as dividend. That amount had to be substituted by, you know, more cash flow coming from some of the other entities. Because the interest amount is only six, that amount came in the form of extraordinary payment through capital repayment. On a steady-state basis, the dividend that we were paying was around, you know, 15-20 paisa. As you can see that, in this particular quarter, only about INR 0.05 has come back. That is another reason why, you know, we had to distribute more as capital repayment. I think based on overall, you know, composition of the cash flows, overall amount of debt, which has been infused into the SPVs, interest costs on that, et cetera, we believe that a steady-state INR 0.65-INR 0.70 is likely to continue at least for the foreseeable future. Fair enough, sure. Thank you, and all the best. Thank you. Next question is from the line of Dinesh Rathore from SSR Charitable Foundation. Please go ahead. Mr. Rathore, your line has been unmuted. Please go ahead with your question. As there's no response, we'll move to the next question from the line of Dinesh Kothari from Shree Infrastructure. Please go ahead. Thank you for providing me this opportunity. I would just like to know that, you know, IndiGrid purchased one of the solar assets recently. What are the plans regarding the solar assets, and how is it beneficial for IndiGrid? Sorry, can you repeat your question, please? Yeah. I'm just asking that, you know, IndiGrid has purchased one of the solar assets. They have started acquiring solar assets. Mm-hmm. What are the future plans with the solar plans? Like, how will it be useful for IndiGrid? Yeah. I think future plan is that we'll keep, like we do for transmission projects, we will evaluate solar projects, which is a solar project with a strong counterparty. That is the plan. We don't have a particular number that we want to become a 1 GW or a 2 GW or INR 5,000 crores. We do not have such, I'd say, specific numbers as goal. However, we believe solar projects have very strong correlation and are very similar to transmission projects in terms of asset management practices, similar regulator, and very high predictability of solar generation. Because of that, if we choose the contracts, strong counterparty contracts, then we believe they are as good as solar transmission projects. All the projects that we'll purchase will eventually result into a better distribution for IndiGrid investors. That is the end goal for IndiGrid. Investors can think of getting more than INR 0.0319 DPU, you know, if the acquisition takes place going forward? It depends on size of acquisition, timing of acquisition, but I can talk about the past, right? When we came to listing, we were at INR 2.75 a unit per quarter. Right now we are at INR 3.19 a quarter, which translates into approximately 4%-5% growth every year. That has been our focus. Yes, if we are able to achieve value accretive growth by acquiring more projects, we believe there is a possibility of increasing of DPU as well. Okay. Yeah, that's all from my side. Thank you. Thank you. Thank you. We have the next question from the line of Sarvesh Gupta from Maximal Capital. Please go ahead. Good evening. Just one question is, as you said, the INR 0.70-INR 0.75 which has come through capital repayments is expected to continue for at least three more quarters. Is there any medium-term guidance that you can give, in terms of the state of DPU between the three more supplements? I would say we would refrain from giving a guidance on this side. Reason being that there are already two guidances given by management. One is a proxy number on the yearly basis at INR 12.75, and second one is on a quarterly basis of INR 3.19. Further breakup of that is theoretically possible, but it is not going to be in control of management to really deliver because it is dependent on if the cash flow moves by one month, right? In September, if the subsequent cash comes in October, the ratio changes materially, right? For that quarter. Both investors and some people will get confused that whether it is because of us. To be honest, the ratio is going to remain unpredictable over a longer period of time because it is dependent on the capital structure of specific SPV and the collection in the specific SPV. This is something which makes it little more complex than projecting it that this is gonna be the percentage for a medium-term or a longer term. To be honest, practically other than the tax impact, which is that on capital repayment, there is no payment. We believe there is no difference. Whereas as long as, you know, transparent terms are visible, there is no difference. Our focus is not to really maximize a particular component which will, you know, we need to focus on. I think it would rather confuse investors than really help because it's still gonna be a straight line, right? Quarter-on-quarter changes will make it more confusing. Understood. This ratio of non-interest form of payment has certainly increased in the last few quarters in some way or other. Right. Are there some trends in your financial structure which is contributing to, and are those trends going to continue going forward? Okay. Yeah. I think one is a structural trend which is going to continue, is that we have acquired a cost plus asset. Which is an asset which is giving tax-free dividends. Right? That comes, that is a PrKTCL sale asset. As and when that asset, which I believe was approximately INR 35 crores-INR 50 crores of dividend, right, comes. On a per unit basis, that translates to around half a rupee, right? INR 45 out of INR 50. About INR 50 of distribution will come. Anywhere from INR 32-INR 50 distribution will come from dividend. Because of that acquisition, which was a structural change, right, which was not there last year. That is one change which will continue from a dividend perspective. Only by exception, like it happened in this quarter or the next, the dividend will go down. Otherwise dividend of that size will continue into the next. For the second there is no structural change. That is just a quarter-on-quarter movement of cash versus our interest payment. There is no long-term trend in that. Wonderful. Thank you and all the best for the company. Thank you. We have the next question from the line of Nimesh Rathod from SSR Charitable Foundation. Please go ahead. Good evening. First and foremost, as usual, the numbers look very good. One line which piqued my attention, and that was 100% safe man-hours achieved in Q2 FY 2022. First, congratulations because I think this line should actually be printed in gold. Again, I would like to bring in appreciation for the fact that ERS kits have been added. Which simply means that there is more focus or rather at least more focus on risk management, which is appreciated. I would like to point out or rather bring in an element of thought here in terms of what is our thinking as far as the balance sheet is concerned. One observation, Harsh would request you to take this to the board as well, is that there is an inclination of keeping the debt element live in the balance sheet. Given these circumstances where there is excess liquidity, I would look at what major companies around us are doing, and I think most of them are trying to leverage the existing liquidity, excess liquidity, and are converting that debt to more serviceable equity. In our language, more unit holders. I wonder the upcoming repayment of FY 2023, which I think is close to about INR 23 billion or INR 24 billion, would it really be refinanced with debt or would there be at least an attempt to refinance it to some QIP or some other means of raising funds? Yeah. Thanks, Nimesh. I think we take your appreciation on the risk management on HSE. I think the leadership team is doing a phenomenal job on ground to ensure that reliability remains high, as well as the team, you know, people working on ground are safe on our assets. On the very interesting question that you've asked on debt and rather equitization of debt. I think it's a very interesting one. I would address it in two buckets. First is units are very unique as a business. I would say they are equity in nature but are much more predictable and better in actually delivering. Let's say for example, you pick up any high dividend yielding business or any let's say consumer business also which is a high delivering business, right? You trade at a particular multiple, right? Let's say they are trading at 10x, 20 x or 25 x or whatever, right? Some multiple they are trading at of their past dividend. Now, investors are okay or comfortable trading in multiple on those stocks because fundamentally they believe that next year also somebody's gonna purchase a toothpaste or somebody's gonna purchase, you know, something else. There is going to be an EPC contract coming the way of the company. Even though there is no announcement, there is no predictability. Still there is an underlying belief that this is a need of the country, of the market, and therefore it will continue, right? Otherwise, no company would have more than a year or two years of order book, right? Predictability, therefore. Whereas in a business like, let's say, IndiGrid, we have a visibility of 30 years that we exactly can say what we are going to earn in second year from now and 15 years from now. We are still being traded or looked upon as, instead of a business, an asset. This is what we are gonna earn from this investment, a bit like a bond. Now, what is happening because of that is that, instead of trading like a business where market appreciating what has been created over last four, five years, this is not a bunch of 13 assets. This is a business which is created, and therefore this is going to continue to add more projects and continue to run like a going concern. People are valuing it as a fixed number of assets, and therefore the questions around IRR and different things come in, right? How many people ask what is the IRR of a consumer company or an EPC company? Not many. That underlying shift has happened, but not happened in the way we would have envisaged or expected or the way it happens globally. If it takes place, then what would happen is that the multiples that you will trade at, right, would be, to be honest, better than borrowing and continuing with debt. For example, as Jyoti had mentioned today, the cost of borrowing is at, let's say, the incremental one that she gave at 6.7%, right? If you look at 6.7% borrowing, it is fairly attractive from our portfolio because we are coming down the cost curve. If one was to look at that if I want to replace 6.72 with an equity on, let's say, 6.72% would mean about a 14 x price to earnings in some manner, or price for dividend, let's say price to dividend income there, right? Now, if we were trading at even 12x, 13 x, it would make sense to raise equity and do it. We are trading today at let's say INR 150-INR 130, somewhere around nine to 10, somewhere around 11x, you know, price right of what we distribute to a 6.7%. Now, if in fact number really comes to 13-14x, absolutely agree with you, it makes sense to raise equity. There are investors who are willing to raise the significant enough liquidity, et cetera, which would make mathematical sense to raise equity and replace debt at that point in time. Because you are now recognized as a going concern business, you don't really need to keep borrowing. Now, this is a case in which the entire perception of the business needs to change in the market. It's a process. A lot has changed over the last four years in terms of IndiGrid as business, firstly. It's still a journey. To be honest, simple mathematical answer is, if we are trading at, you know, 14 x our DPU, it makes absolute sense to raise equity and redo it. That's one question. Second is, second aspect which comes into play is, that we need to balance between the equity that we raise and the debt that we have and the new assets that we will acquire. The three things needs to be time related. For example, we did raise rights issues. Exactly what we did is INR 1,200 crores of rights issue we raised. Now, that rights issue has obviously allowed the leverage to be lower, and cash is fungible, whether we used it to prepay debt or acquire asset at the end. In addition to that, there is the additional equity that we raised in April this year. That equity we raised at INR 110, right? If you were to look at 12.4x, this one we raised at 10x-11x multiple. Now, at 10x-11x multiple, it does not make mathematical sense. Mathematically, it'll be better if we borrow. We wanted to keep ourselves ready if there is a larger acquisition comes, and therefore keep the headroom ready to go. Therefore we sized it accordingly. Now, in the same manner, if we are raising equity, if we are trading at 14x and raising equity, certainly we would prefer to raise equity over debt. I mean, that's the challenge that I'm talking about. I think even with evolution of the product and the business and the understanding, I think we'll reach there eventually. Maybe one of the things or one of the expectations we could start by saying is that there is a need at times to let go of the incremental DPU in case we want a leaner balance sheet. True. I think that's exactly the reason why we raised equity, right, of INR 1,130 crores. Right. Right. Yeah. I think we need to strike a balance. That's exactly what we are doing. We're doing a balance right now. With 57% of the debt, we are already very lean versus, you know, the infra projects in general or even other most of the corporate. Yes. Point taken. All the best. Thank you. Thank you. We have the next question from the line of Sunil Kothari from Munich Investments. Please go ahead. Hi, thanks for the opportunity. My question is to Mr. Harsh. Sir, basically as an investor, what up to now we were going to understand from whatever commitment or language or the promise we as a individual making was that we would like to grow as an organization, so that's why we are raising capital. First initial offering and then again, right. Now slowly we are talking about giving capital back maybe for a foreseeable future, 65%-75% payout. I'm a little really confused, but please don't explain to me. Okay. Regulatory language, but make me understand why this is happening. We have lesser opportunity now to grow. That's the reason we are giving capital back or it's just some temporary phenomena? Okay. Let me answer in very simple language. Please. While in English language we are saying we have a capital repayment. Mm-hmm. Practically, this is no capital repayment. InvIT is a liquidity product. There is no promise of capital repayment. Company cannot repay any capital to you. Mm-hmm. You have bought it at a particular price. It will trade in a different price. You can transact on an exchange. There is no concept of giving your capital back in your hands. It is not a debt instrument. Right? Now, it has nothing to do with what we did at IPO, what we did at preference issue, what we did at rights issue. I can very well do a preference issue today and next day provide INR 100 crore capital repayment. That's what is done. It is not meant to we have taken, we have raised money and given it back to you, right? Mm-hmm. In legal language, it comes because the tax is drafted in the English language just for the sake we use the word capital repayment. Okay? You are not getting your capital. What have you invested in? You have invested in a business which owns transmission lines and solar projects. It earns income by working that, and it gives that income back to you after paying for expenses and financing costs and tax, right? Mm-hmm. Now, the nature in which it is given back to you is in the hands of tax authorities of how the tax laws are drafted. It has nothing to do with if your capital came in the business and came out on its own. There's no such concept. The confusion that you may have is on account of the wordings that are used for income tax and otherwise that we are repaying capital. In reality, this is not a capital repayment to you. No, no. In my account, that will be counted as capital repayment. I'll reduce my cost. Correct. I cannot treat it as a income, right? Correct. This is a law of this land, and we are very well aware that this was when we came with InvIT. It is also now same law. My question is, whatever language it was used, and previously we were very sure or, I mean, very confident about not giving much capital back and growing the organization. What I understand, you have raised this rights issue because you want to increase your balance sheet. You can borrow more. Now you are reducing your, whatever you call it as a capital or equity. No, sorry to interrupt. No, I'm sorry. Just let me interrupt you over there. Please. These two are not linked. This is exactly the point. You are linking the two points which are not linked to each other. Okay. We can grow. Growth has nothing to do with what happens in your tax accounts. Mm-hmm. What you are linking is, these two are not linked. They're completely different things. Okay. On one side you are saying, on one side what you are saying is your accounting and tax books, right? Mm-hmm. That has nothing to do with the growth opportunity and capital available with the company. Fine. Or just to clarify these things, you mean to say this repayment of capital, will it reduce our borrowing capability to that proportion which say we- No. See, that's something, please, absolutely separate. Can you please separate- Mm-hmm. The reality and the tax for a second? Mm-hmm. The reality is what we said, that we want to grow. We have capital available. We have raised capital. We are going to deploy that capital, and we are going to earn income from that, right? This is the reality. True. Now, what you are getting back in your tax books is tax reality. That has nothing to do with our wanting to grow, SEBI limit, et cetera. Right? Now the way the income tax are drafted is that InvIT is a pass-through vehicle, and therefore being a pass-through vehicle, whatever nature in which you receive cash flow- Okay. From subsidiary, you need to repay it back to the same, in the same manner to your investors. Okay. We receive it in form of interest, we give it interest. We receive in form of dividend, we give dividend. We receive in form of principal repayments, we give it back in form of principal repayment. Right? Now, this does not reduce our ability because please understand, what we are drawing from SPV- Mm-hmm. Right? Is the operating cash flow. Right. Madam, if I have INR 100 crores of EBITDA in the SPV, after paying INR 70 crore interest or INR 80 crore interest and INR 20 crore principal, my SPV is still going to earn next year another INR 100 crore. SPV is not repaying the capital. SPV has earned INR 20 crores of EBITDA, so it needs to upstream the money. In a normal company, you would get stuck because the depreciation gets stuck in the company to change this concept, they said, "Look, we are going to allow you to offset your depreciation by paying your principal to your parent, which is an InvIT. They also need to give it to investors and some of principal repayment. Yet it reduces your cost of acquisition because the tax authority did not want this completely tax free. Right? Mm-hmm. Here, this is reducing. This is moving from your tax account to your capital gains account, which is better for you as an individual assessee, right? Or anyone for that matter, from a tax perspective. What support I can give you is that this has nothing to do with our ability to acquire more projects or has nothing to do with revenues that we have available to acquire projects. This is just given to you as a capital repayment because the way Income Tax Act is drafted, and you should be happy because you are indirectly paying or deferring your capital gains tax, and you are not paying tax on this account. Right? It's beneficial to retail investors, to be honest, because as long as you understand from us that the company's opportunity has nothing to do with this. These two are different things. Right. To just make it a little bit more clarity, what I'm trying to now understand from you is the language which we were understanding. Your meaning may be different. We were understanding was that there will be majority. Majority means always it will be interest, sometimes some dividend and sometimes some fraction of some paisa or some rupee as a principal. Now the language Mr. Jyoti has spoken is that there is INR 0.50-INR 0.75 for foreseeable future. Now we are foreseeing the future which will make it distribution what is INR 12.75 will increase every year 3%-4% INR 13. But out of that between INR 2.5-INR 3 will be capital. That is for how many years? If you can tell me, that will be a great help. Yeah, sure. I think there are two points, right? One, as I said earlier also, we won't be able to guide on what will be the principal. It It should remain a minimal amount of principal, because it is linked to the cash flow that comes in in a particular SPV in a particular quarter. What we can guide towards is that majority, as we have said before, will remain interest. INR 0.30-INR 0.50 will remain as DPU. Sorry, dividend. Dividend. Because these two things are firm, right? We have lent X amount of loans to subsidiary on which we are charging Y amount of interest, predictable number. Mm-hmm. Second, we have acquired a class of asset which gives a predictable dividend, predictable number for us to pay. The third number is a balance of what we collect every year or every quarter. Our principal balance, right? That balance we can't predict, right? What we can predict is line one and line two, right? Mm-hmm. Based on the cash flow variations that happen, based on, let's say, we acquire an asset with readymade cash, based on capital event in between, it is impossible for us to guide at a midterm that we are continuous to having, you know, either INR 2 or INR 1 or whatever the amount of sensitivity. It is not possible for us to guide. Mm-hmm. What we can guide is on INR 12.75, which is guided, and we can very well guide on that the majority of that would remain as an interest or dividend, because both of them are the exact number that we are charging the SPV, right? Third part is the balance part. That is very difficult for us. The total remains unchanged. Some minutes back, the prediction our CFO has made of whether 65% or 75% for some quarters or some foreseeable future. Some quarters will happen. Okay. That is what I'm asking. Yes. Some quarters or foreseeable futures, these are the different languages we are using. If you can make it simpler, that will be really, really nice. Yeah, sure. No problem. Yeah. Assume that couple of quarters it will happen. The reason also was provided by Jyoti that because the, we have filed a true-up petition, right? For one of the regulatory assets. The dividend over there is changing, and therefore the part of the component of principal is increasing. That is just a sort of transient phenomena. After a few quarters or maybe reasonable time frame, should we expect that there should not be or there will not be any major capital returns? In terms of major, in my opinion, INR 2 or INR 3 capital return is major. INR 11 or INR 12 interest or maybe INR 0.50 capital is fine. Can you- No, no, but I think we can't say anything on this, Sunil. If tomorrow we receive a INR 200 crore upside from some cash- Mm-hmm. We have only way to give you capital. Those repayments from the SPV is very unpredictable, this additional whatever we are receiving? Yeah. See, additional ones are unpredictable. That's exactly what our point is, right? See, you can't have a daily prediction or monthly prediction of cash flows, right? We have an annual prediction, therefore we give an annual guidance, right? We give a quarterly guidance. Within that quarterly guidance to give further guidance is not possible. There will be ups and downs, and that is one of the reason that we maintain 110%-110% of cash reserves, right? Within that cash reserve also there is an interest and principal breakup, right? Now, in one quarter we want to use the cash reserve, we have used the interest cash reserve. In other quarters, the interest cash reserve is finished, so the principal cash reserve is used. You will see variability over there. It is just impossible for us to guide on that. I'm not sure why should we guide on that, right? We are guiding on the total DPU beyond this point. If at all there is a higher capital deployment, it should be helping investors. It's not possible for us to guide. No, no. I completely appreciate that. Previously, we were guiding on this, that's why I'm asking you. Yeah, yeah. We are still guiding that fixed revenue is gonna remain visible. Okay. Fine. Thanks a lot. Thank you. Thank you. Thank you. The next question is from the line of Theo Krishnan from PNB MetLife. Please go ahead. Yeah. Thank you for the opportunity. Congratulations Harsh and team for yet another stable quarter. Just a few queries. I just wanted to get your thoughts on this possibility of debt raise from, let's say, the overseas market. Do you think there is a scope for further compression in our existing cost of funds if we were to borrow via this route? Are there any regulatory hurdles for InvIT or raising funds in this regard? I'll actually allow Jyoti to take that. Jyoti, you want to take that? Yeah. Thanks, Harsh. Obviously, you know, the more the avenues of raising capital, the better, both in terms of an ability to raise capital as well as the competitive intensity, leading to better pricing for us. This is definitely a very welcome step by the regulators, RBI in particular, allowing FPIs to invest in securities that are issued by InvIT. We believe there is room for further compression, like-for-like basis for our papers, both in the domestic as well as the international market. We have seen over the last, let's say three or four quarters, you know, significant compression in terms of our pricing vis-a-vis, let's say, our peers. Overall, about seven basis points compression has happened. This is coming along with an increase in the tenure, and generally the term structure is upward sloping. To that extent, you know, the on a like-to-like general basis, the compression has been even higher. We believe there is some more room to go or, maybe another 20-30 basis on a like-to-like basis. But we are also mindful of the fact that the interest rate environment is looking a little bit towards hardening. While there could be a reduction on a same sort basis, on a like-to-like basis, on an actual basis because of a likely hardening of rates between now and the next two to three quarters, whatever compression that might happen will get nullified by the hardening. Maybe we will see similar rates at least for the next two or three quarters for our fundraising. FPI is definitely a very good avenue. It's, there's a deep market out there. We are a company with InvIT. We are, you know, we have KKR, internationally very well understood sponsors that help us in getting adequate participation from FPI investors and also potentially extend the tenure of our NCD issuance. That will definitely help. Avenues of raising capital, there is one more avenue from international market which is not available right now, which is the ECB market, which also there is a proactive effort done by InvIT as well as some of the other InvITs. We hope that in the near term, maybe two or three quarters from now, that avenue will also be available for us. That will help us raise lower capital and, you know, if let's say the cost of that capital on a hedge basis is comparable or lower, then that further sort of augments your toolkit from a variety of fundraising options as we said. Sure, sure. Understood. Yeah, that's right. I think we have. I think in our presentation mentioned that we have close to INR 2,400 crore of debt maturity in FY 2023. Just trying to understand here, what would be the average cost of this specific debt piece that would be refinanced? Yeah. The average cost is significantly higher than the marginal cost. On an average, I think this would be more than 8.5%. One of the papers is upwards of 8%, another one is more than 9%. Like I mentioned in the presentation, given our marginal cost is still significantly lower, we're doing fundraising sub-7%, whereas our average cost is 7.8%. There is a significant headroom for the average cost to go down as and when we refinance some of the older papers which are coming from a charter. Understood. Sure. Thanks. Maybe one last bookkeeping question from my side. Could you help us with the cash reserve which we would be holding with the SPV and the lease level both? The overall cash that we hold right now is about INR 800 crores, but this includes the ACIF reserve of about INR 116 crores. We have about INR 335 crores of the SRA reserve. This also includes the INR 2.3 crores of ETU, which we get paid middle of November. If you adjust all of this, I think we would have about INR 150 crores of extra cash beyond the three things that I talked about. Okay. Understood. Yeah. Thanks a lot. Thank you. The next question is from the line of Abhilasha from Dalal & Broacha. Please go ahead. Yeah. Thank you for taking my question. Sir, you mentioned this INR 50,000 crore of infrastructure and around INR 45,000 crore of infrastructure which are expected to be tendered over the next three to four years. I just, you know, we just wanted to get clarity on which bids are just under it. It also includes the solar bids which could be tendered out over the next three to four years. Where are we placed in terms of the strike rate or yeah, I mean, where do we want to take AUM from current level? What is our visibility in that term as well as the market momentum from here? I think the first thing is this is only a transmission project. This does not include solar project. Second is, we don't predict strike rate or we do not have a particular target in mind that we want to become a INR 30,000 or INR 50,000 crore. Even if it is INR 30,000 we started with, that is just a vision. It's not a target or a goal. Our focus is more on acquiring projects which have value accretive. And if we find projects which are accretive, basically earn a better returns, we would acquire. If, I think, they are not, we'll not acquire. We'll have to see. We'll try for the projects, but eventually, the success is in the hands of, what happens in the marketplace as well. Considering that there's a significant pipeline and there are limited players, we see a good success in this particular business as well. Okay. Solar then would be on and above that what we have spoken. That will be another interest which we will pursue going forward, right? That is correct. Okay. Yeah, yeah. Thank you. Thank you. The next question is on the line from Sarvesh Gupta from Maximal Capital. Please go ahead. Jyoti, one follow-up question on this interest environment. Like you said, maybe hardening in the coming quarters. You are expected to pay down some of, I mean, replace some of the debt in your balance sheet, and this will be at a lower cost. At the same time, you know, the interest rates, as you said, might also increase a bit. Net/net do you see your like-to-like interest cost component increasing, thereby any chance of, you know, overall EBITDA getting impacted because of that? Or do you see that net/net it should be a likely positive impact because of refinancing? Let's- Positive impact because the rates at which these instruments are locked in are way higher than our marginal cost. Even after accounting for a marginal uptick due to a hardening environment, net/net, you know, the benefit would be better in refinancing this whenever that happens. Second, what we are also doing in anticipation of a sort of hardening cycle is that we are discussing with some of the investors in these papers, and, hopefully there will be, you know, traction there, you know, over the coming couple of months to sort of, prepay some of these papers and lock in the existing rates. It's a function of, you know, what the investors are comfortable in keeping, et cetera, et cetera. We are proactively working on it, and we hope that a certain portion of these repayments we will be able to prepay and lock in the, you know, current interest rate environment rather than confront a slightly harder environment in the coming year. Understood. In terms of the, you know, Harsh, if you can answer this one. In terms of slight liquidity, you know, that we are all seeing, do you see a meaningful? I mean, in case you were having a sort of cut off project IRR at which you would want to acquire, do you see that opportunity significantly diminishing now because of the gush of liquidity and maybe the IRRs that are, the projects available are much lower, thereby not letting you acquire too much, too many assets in this moment? Yeah. No, that's an important question. I think we've not lost out projects because of price till now. I think there is certainly a gush of liquidity. There is many players who want to enter the business, especially CPSEs. However, I think we've not really lost our projects because we could not meet the IRRs and then make it accretive. At the end of the day, this business is not a year-over-year business or quarter-over-quarter you need to acquire projects. You need to take an outlook of three to four years. Between those periods, there are always gushes of liquidity that happens, exuberance happens. People build out projects, they make mistakes, then they get stressed, and then they eventually wanna monetize, right? It's a cycle. IndiGrid's business or the strategy is much more long-term, and therefore we've got to wait for the right opportunity when the market is, I would say, not so forgiving for bad projects, and those projects will eventually be built and eventually come to market to monetize. That is certainly a better time to acquire assets, right? I won't say that we are not able to acquire assets right now because of we not being able to meet the price. This is an exuberant market, and therefore what happens is people pause some, sometimes, monetization decisions, right? They feel that, "Oh, should we be selling? Should we be keeping? Where am I getting a better value?" Right? That is when the processes of sale get postponed or delayed, right? It's a cycle. Eventually that cycle turns around and then there are better opportunities to acquire assets when people are more than willing to sell. We just wait out these cycles, and that's just how the business should be looked at. On the reverse side, are you also thinking because of, again, the environment to sell down any of the assets that we already own? Very, very good question. I think, yeah, if we sell down, there'll be a good mark-to-market credit in some of the assets in a big way. But see, we are not in the business of trading assets. We are the eventual owner of the asset. However, SEBI has envisaged this scenario for this entity, and there are certain guidelines they have put in place. So if we sell the asset, let's say for example we took an asset which in today's books is, take that, let's say INR 500 crore in our NAV calculation of INR 134, and we are able to sell this asset at, let's say, INR 600 crore for assessing. The INR 100 crore extra that we will receive, right, which is over and above the NAV that we publish or let's say INR 1-INR 2, will be an upside that will happen if we sell it. What will happen is that as per SEBI regulation, point one, we can only do this if we have owned the asset for minimum three years. We cannot do it before that. Second, if we decide to do that, we need to return the entire INR 700 crore, entire INR 600 crore to investors as a return of capital, right? What is the advantage in doing that? Imagine the complication if 70% DPU capital repayment can make people confused so much. Imagine suddenly a 50/50 capital return coming, right? It just doesn't make sense, both from a regulatory perspective and simplicity perspective. It just doesn't make sense to do that. Okay. Understood. Thank you. Thank you. A reminder to participants, anyone who has a question, may press star and one on your phone. Next question is in the line of Swarnim Maheshwari. Please go ahead. Yeah. Hi, sir. I've got two set of questions. First one, you had mentioned that we are exploring this opportunity to partner out for bidding the TBCB projects. Now I just wanted to understand whether we will be taking any kind of balance sheet exposure or how is it going to be like? Sorry, with respect to? The TBCB assets that they have. They're in the bidding pipeline, so we are exploring the option to partner out and bid for those assets. Whether there will be any balance sheet exposure or how is it that we are looking to, you know, to bid it? Okay. It depends on the size and scale of the projects, Swarnim, to be honest. I think we plan to do. I mean, there are two levels of strategy over here. Strategy one is that we want to partner with developers, and we would partner with developers for projects which, you know, are larger in nature and there we will look for partners to complete the projects we'll be acquiring. The second type of partnership which we are looking at is where we might invest a minority component early on to ensure that, you know, we have sufficient rights on the project to monitor the progress, quality and eventually acquire that. The third would be that we, instead of partnering with developer for smaller projects, we might look at to partner with, you know, a lump sum guarantee for the project and finish it ourselves. Because we do have the ability to execute small projects and in terms of capital, we have edge also in terms of financing those projects. If you partner with large EPC players and eventually execution also gets de-risked substantially. Between all these three, four options, depending on which option or which one will be succeed, that is where it'll impact our balance sheet. But we would be keeping any such exposure to a very, very small percentage of the business. Absolutely. Right. Right. Clear. Clear. The last question is for Jyoti. Now this INR 2,400 crore of repayments or refinancing, what is actually being affected. You know, is it like, you know, is it in Q1 or Q3, which quarter is it actually due in? Also, have you already started, you know, considering or exploring the refinancing options for that? Yes. Swarnim, we've already started the discussions. I mentioned that, you know, earlier, we're already in active discussions with a variety of lenders and we should be able to refinance some of it ahead of time as well. Sort of pre-pay some of the amount before the maturity. In terms of your first question, I think about INR 700 crore is coming for maturity in the first quarter of the next financial year and INR 1,400 crore in the second quarter. Rest of it is evenly spread out over the year. Thank you. Thank you, Jyoti. Harsh, we don't have any further questions. Can we close the call now? Yes, please. Thank you. I would just like to thank the IndiGrid management for once again giving us the opportunity to host this call. Harsh, would you have any closing comments over here? Thanks. Thanks, Swarnim. I think my closing comments remain in line with our outlook. We are focused on delivering superior total returns, which means sustainable, predictable DPU and growing it by way of acquiring and building more projects. We are focused on that. I think some of the smaller quarter-on-quarter changes on distribution mix etc. does not matter, as long as, you know, our focus remains on delivering the superior returns that we have promised, and we're pretty much on top of that. Overall, IndiGrid has in general built a large utility with a strong management team and very good credibility for now, and we are focused on continuing to operating on similar lines and deliver a superior risk-adjusted returns to the investors. With that, I would just close from my side. Thank you. Thank you so much, and I wish you all a very happy Diwali. Thank you. Thank you very much, members of the management. Ladies and gentlemen, on behalf of Edelweiss Securities, that concludes this conference call. Thank you for joining us, and you may disconnect your lines.