Ladies and gentlemen, good day and welcome to the GSPL Transmission Limited earnings call Q2 and H1 FY 2027 hosted by EY. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Vikash Verma from EY. Thank you, and over to you, sir. Thank you, Ashi. Good evening, everyone. On behalf of GSPL Transmission Limited, I welcome you all to the company's quarter two and H1 FY 2027 Earnings Conference Call. To discuss the performance of the company, we have with us from the management team, Mr. Prakash Karnik, Chief Executive Officer, Mr. Lokesh Agarwal, General Manager and Chief Financial Officer, Smt. Rajeshwari Sharma, Company Secretary, Mr. Devendra Agarwal, Head Commercial, Mr. Saarthak Gautam, Head Procurement and O&M. Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain some forward-looking statements that are subject to various risks, uncertainties, and other factors, which would be beyond management's control. We kindly request to bear in mind that there might be some uncertainties while interpreting such statements. We will now start the session with the opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I will now hand over the conference call to Mr. Prakash for his opening remarks. Thank you, and over to you, sir. Thank you. Good evening, everybody, and warm welcome to Earnings Conference Call of GSPL Transmission Limited. On behalf of the board and the entire management team, I thank our shareholders, investors, analysts, and stakeholders for joining us today. I will begin by explaining who we are, how our business creates value, why our network is strategically important, and how we intend to build the next phase of growth. GTL is a focused pure-play natural gas transmission platform operating on an open-access basis. In simple terms, we provide infrastructure that transports gas from domestic production sources, LNG terminals, gas marketers to gas distributors, refineries, fertilizer plants, power producers, and industrial customers. GTL has a strategic and difficult-to-replicate network. Our Gujarat network extends approximately 2,900 km, covering 26 districts, making it India's second-largest natural gas network, serving 100+ customers to 200+ customer exit points with FY 2026 contractual volumes of 40 MMSCMD. Our network is connected to major district domestic gas supply sources, LNG terminals, and consumption centers across Gujarat. What makes our network particularly strategic is its positioning within Gujarat, India's largest gas-consuming state. Gujarat accounted for approximately 22% of India's natural gas consumption in FY 2026 and hosts four operational LNG terminals. GTL is the only grid connected to all operational LNG gateways in the Gujarat. This connectivity enables us to link multiple sources of gas with diversified base of CGD, refinery, fertilizer, power, and industrial customers. Our bidirectional network design and SCADA-led operations further support system flexibility, reliability, and 24/7 monitoring. GTL is positioned for India's gas-led growth. India aspires to increase natural gas share in its energy mix from approximately 6% currently to 15% by 2030. Natural gas consumption is projected to increase from 188 MMSCMD in FY 2026 to 297 MMSCMD by 2030, supported by urbanization, industrial and manufacturing activity, cleaner fuel adoption, pipeline expansion, and development of LNG infrastructure. Within our customer portfolio, we maintain diversified exposure across these end-use segments. GTL is positioned to participate in this opportunity because our network connects supply with several of country's key demand segments. Equally important, our customer portfolio is diversified, which limits dependence on any single end-use category and gives us exposure to multiple sources of gas demand. Coming to our business performance, Q2 FY 2027 saw broad-based growth in transportation volumes across our key grids. Overall, GTL volumes increased from 45 MMSCMD compared with 40 MMSCMD in Q2 of FY 2026, representing 12% growth. HP grid volumes grew 9% year-on-year. LP grid volumes increased 30%, while HP grid volumes increased 16%. Our presence beyond Gujarat is supported by two of our joint venture companies, GIGL and GITL. GIGL operates approximately 1,439 km of cross-country pipeline across Gujarat, Rajasthan, Haryana, and Punjab, while GITL operates approximately 365 km of pipeline connecting Andhra Pradesh and Telangana. Another important focus for us is creating capacity for the next phase of the growth. We are progressing on expansion-led CapEx program of approximately INR 3,500 crore, covering more than 10 pipeline and connectivity projects aggregating to 700 km. Combined with our existing approximately 2,900 network, these additions are expected to expand our overall Gujarat network to 3,600 km. Project execution is gaining momentum with several projects now at advanced stage of implementation. In July 2026, we awarded EPC contracts worth INR 1,800 crore for Anjar-Palanpur pipeline project. Other projects under implementation include Jamnagar-Dwarka, Vapi-Tarapur, Dahej-Bhadbhut, and multiple spur lines and customer connectivity projects. Our approach going forward remains centered around expanding network reach, improving utilization, maintaining asset integrity, discipline, capital allocation, and diversifying our customer base. We believe our established infrastructure, strategic connectivity, and planned expansion provide a strong platform to participate in growth of India's natural gas ecosystem. Over the next two years, our focus remain on disciplined execution and maintaining operational and financial stability. As the ongoing expansion projects are commissioned, we expect additional capacity to progressively contribute to the growth. Looking ahead, our priorities are clear. First, expand network reach and connectivity. Second, improve utilization across our existing and new assets. Third, maintain safe and reliable operations through automation, preventive maintenance, and strong asset integrity practices. Fourth, broaden our customer base. Fifth, preserve financial discipline as we execute our investment program. We believe GTL combines the characteristics investors expect from high-quality infrastructure, a strategic and difficult-to-replicate network, a regulated and asset-backed business model, diversified demand exposure, visible expansion opportunities, and a debt-free balance sheet that provides financial flexibility. With this overview, I will now hand over to our CFO for detailed discussion on operational and financial performance for Q2 and H1 financial year 2027. Lokesh. Thank you, sir. Good evening, everyone. We will have a brief overview of the financial performance for the quarter and half year ended 30th September 2026. In terms of key financial metrics, our standalone revenue from operations for Q2 2027 stood at INR 290 crore, representing a growth of 8% year-on-year versus previous year Q2 actuals of INR 267 crore. On a sequential basis, the growth was at 4.5% versus INR 277 crore in Q1 2027. On a half-year basis, the H1 2027 revenue stood at INR 567 crore compared to INR 542 crore in the same period last year, registering a growth of again 4.5%. EBITDA excluding non-operating income, which primarily includes interest from deposits, stood at around INR 169 crore in Q2 2027 as compared to INR 160 crore in the same period in previous year. EBITDA margin for the quarter stood at 58.4%. On a half-year basis for H1 2027, EBITDA stood at INR 363.5 crore, being in line with previous year half-year EBITDA of INR 362.9 crore, with an EBITDA margin of 64%. Profit after tax on a standalone basis stood at INR 120 crore during the year versus INR 118 crore in the previous year Q2, being an increase of around 2%. On a standalone half-year basis, profit after tax stood at INR 258 crore versus INR 255 crore in the corresponding period last year. Again, an increase of roughly 1.2% or so. The current state of balance sheet provides us with enough financial flexibility to execute our investments. We have already announced investments worth more than INR 3,500 crore, and we stand in a pretty good state to execute the same. As of September 30th, we are debt-free and have a net worth of approximately INR 7,150 crore. In first half of the year, we have executed CapEx of approximately INR 300 crore, and this is in general in line with our expansion program, which we have announced earlier. I now open the floor for questions and answers and hand over to the moderator. Thank you, everyone. Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. 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 assembles. The first question is from the line of Mr. Yogesh Patil from Dolat Capital. Please go ahead. Thanks for taking my question, sir, and wish you happy Diwali to all of you. The first question is related to the expansion plans of INR 3,500 crore. What would be the debt-to-equity ratio for this expansion plan, and have you received the board approval for raising a debt for this expansion plan? Yes. So, see, the expansion plan is spread over a period of another two and two and a half years from now. Whilst we believe that we will be in a good state to complete this expansion through our internal accruals and current cash balances, if at all we are required to resort to limited financing, we would do that. We have significant financing approvals in place. We do not need to go for any subsequent approvals to execute these projects. Generally- I think there was one more part of your question. Yes, sir. From the board. Yeah. All of these projects are duly approved by the board and are in various stages of implementation. Per se, I won't say there is nothing much which is still on the drawing board. Almost every project is now in the execution stage. Although these may be in various stages of execution, but almost everything is on ground now. Generally, we follow the 70/30 kind of a debt-to-equity ratio for the pipeline projects. We will not follow that kind of rule for the INR 3,500 crore kind of a expansion plan. Is that a correct understanding? Largely depend upon our internal cash flows, which will continue to support all these expansion plan. Is it correct understanding about this? Sir? Sir, you are not audible. The management line, if you are speaking on mute, please unmute yourself. Hello, am I audible? Yes, sir, you are audible. The management line is on mute. Management line, please unmute yourself. Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Yes, sir. You can go ahead with the answer. Sorry, Yogesh, I think we got disconnected. So, I heard you saying the normal funding ratio is in the proportion of 70/ 30, and I take that well. But here, we believe at this stage in time when we have limited projects in hand and we know our requirements well, we believe we should be good to execute basis the internal accruals and current cash balances. Certainly, we continue to evaluate various options before us, not that what we do now is etched in stone. We continue to evaluate our current project book, I would say. So, in case anything else materializes, we will certainly look at even raising debt. As of now, we are not short of funds, so that is not something which is high on the agenda right now. But as we evaluate projects, if something exciting comes up, we will certainly not shy away from going for debt. Sir, the conclusion of the question was like that, a 12% post-tax ROCE kind of returns we generate on the gas transmission pipelines. If we are not taking a debt, then the cost of a debt generally is low and the cost of equity generally remains higher, and most of the internal accruals is considering equity which will be deployed for the expansion of all pipelines. So, all in all, our returns will be limited. That was the thing. But yeah, I got from your side. My next question is on your presentation side. You have provided a transmission volume detail since Q1 FY 2026. We are trying to match the same with the earlier one. Like, for example, in a quarter second FY 2026, earlier you had provided a 25 MMSCMD volume, and now in the latest yesterday's presentation, you have mentioned the 40 MMSCMD as a total. How one should correlate or interpret these numbers for the same entity? Can you please elaborate? Yeah. So, see, the difference lies in the way we put across the numbers. So previously, the numbers that was being shared were physical numbers, basically the physical molecules which would travel. Now, these are the contractual numbers which appropriately reflect in revenue as well. So, and I think the way we were sharing data previously used to create a lot of mismatch and lot of questions around how we were reporting numbers. So we have tried to set this right in this first presentation, in this first outreach that we have with our investors. And hopefully, we would be able to correctly correlate our revenue with volumes going forward. If this is a contractual volume, then in case of high-pressure pipeline, we try to back-calculate the tariffs based upon the net of expenses revenue you have provided for the high-pressure pipeline, and the volume also you have provided. It comes a little bit on a lower side. Instead of INR 18.10 per MMBtu, it comes around INR 17.5 per MMBtu. Why this difference would be coming? Any clarity on this end? There would always be some variation. This is the gross calorific value. It may be very, very difficult to correlate exactly in terms of the tariff versus the transportation volumes. There would be some mismatch, but I believe what we provide now would sustain on a longer term. Okay. Sir, my next question related to the- I am sorry to interrupt, Mr. Yogesh. Can you please rejoin the queue for follow-up questions? Yeah, yeah. Sure, sure. I will come back. Thank you so much. The next question is from the line of Mr. Bineet Banka from Nomura. Please go ahead, sir. Hi, sir. Thanks for the opportunity. On the existing pipelines of, I think, 2,900 km, what is the existing useful life of these pipelines? Also the next tariff revision, when is the date? The useful life of pipelines per se on record, it would vary from, I would say, from section to section as to when these were actually installed. Typically, the first useful life that we ascribe is to the extent of 30 years, but not that the pipeline cannot be used beyond 30 years. These would always be subject to recertification reviews and increase in life of pipeline. There was a second part to your question. Can you repeat? When is the next tariff revision coming in place? The last revision was in 2024, I think in April of 2024, against a filing made in 2023. Okay. We would go for next revision somewhere in 2028 or so. Sir, by 2028, when there is a next revision, will the pipelines be completely used of their useful life of 30 years, or will there still be some life left? I am asking because after 30 years, we will have to get a special approval for extension, and then tariff will have to come down meaningfully from current levels. Yeah. Prior to filing of, say, any revision, we will certainly review the life, and if there is a need for any revision in the life of line pipes, we will certainly obtain necessary certifications. Typically, PNGRB allows an increase in life of up to 10 years in a single tranche. To your another part to the same question, we don't believe it will lead to reduction in tariffs. It may or may not lead to a positive impact, but it will certainly not lead to a reduction in tariffs. That is what we believe. 12% ROCE based on the current net asset value, right? Because of depreciation, your asset get depreciated, the value comes down. So 12% of ROCE, that is what you will use to get the tariff number. So it has to come down, if I'm not wrong. There are two factors. Whilst I agree that it will be 12% on current net asset value, there is also an element of the value of asset at the time of retirement. So that benefit gets stretched beyond 10 years. So you get that benefit as well. And of course, you get benefit of OPEX too. And sir, what is the current net cash in the books, including the deposits? That would be to the extent of approximately INR 1,800 odd crores now. Is this against some deposit from the customer, or this is the cash belongs to you? No, no. Largely all of this belongs to us. The deposit from customer would be not a very significant amount. Okay. I'm sorry, Bineet sir, can you rejoin the queue for follow-up questions? Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in this conference, please limit your questions to two per participant. Thank you. The next question is from the line of Sabri Hazarika from Emkay Global Financial Services. Please go ahead. Yeah, good afternoon and two questions. Firstly, can you give us a roadmap of how this INR 3,500 crore CapEx program would percolate into tariff hike once it comes due in 2028? By that time, what would your capacity look like versus what it is now? And how much would be the CapEx which you will present before PNGRB, and roughly what kind of tariff hike you are expecting from that? Management line. We cannot hear you. Management line. Management line, we cannot hear you. Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I rejoin them. Yes, management line, you can go ahead with the answer. Sorry, we didn't even get to hear the question. Yeah, I'll repeat. Just like, I mean, this whole CapEx program of INR 3,500 crore spread across the two years. You said the tariff will come for review in 2028, so that's like around 1.5 years from now. So, 1.5, two years from now. Just wanted to know, out of INR 3,500 crore, what would be the gross block addition that you would expect by that time, given that INR 400 crore, INR 500 crore depreciation is also there? And then, what is your assessment in terms of capacity, what it is currently, and how it will go up? And based on all these numbers, what kind of rough cut tariff hike do you expect once it comes for due in 2028? To answer the first part, I think we should be able to complete at least, I would say, approximately INR 3,000 odd crores by March of 2028, and some part of the balance may spill into maybe April, May, June 2028 or so. So, that is the plan, and we believe that's a fairly achievable plan. What was the second part? Capacity now, and what would be the capacity by then? Current capacity is around 36.5 MMSCMD, and we expect that to go up by around 8 or 9 MMSCMD. Okay. Based on these parameters, what is your rough cut assessment for the tariff hike by that time? That is something we would leave to the regulator. We would not like to speculate on that part. We would rather execute and let the regulator decide. Fair enough. Second question is just a small question on this GIGL, GITL. If I see the year-over-year growth, my revenue is up around 13%, 18%, despite volumes going up by almost like 20%, 100%. I think these are like bid-out pipelines, just wondering if there is some take-or-pay adjustments here also, or otherwise the revenue should move exactly in tandem with the volumes. Just wanted some clarity on that. Yeah, so there might be some mismatch, primarily on account of ship-or-pay revenues versus the previous quarter. Okay, fair enough. Thank you so much, and all the best. Thank you. The next question is from the line of [Shreyansh Mehta from Shree Capital]. Please go ahead, sir. Yes. Good evening, Mr. Karnik and Mr. Agarwal. Thanks for this call. This being our first investor call as a new entity, I would like to ask a couple of questions on the basic business model as well. But before that, in line with the earlier question about the previous PNGRB order of 2024, I believe that we had challenged this order at appropriate levels. So if you can give some understanding about what is the status of that challenge and when do we expect any outcome out of it? Secondly, in that order, nearly at every place where our claim has been denied, it is mentioned that it will be trued up in the next tariff revision. How does this truing up mechanism work? If you can just walk us through that, will it be kind of, will it give us, if there is any tariff revision decided later on? Will it come with the previous effect? Has it also happened in our earlier tariff revision where our claims were denied? If you can just walk us through this, that is my first question. What we understand is the matter is still at the PNGRB appellate tribunal level, they are yet to revert on any sort of order on our appeals. That is one. Two is anything which happens, we will certainly get a credit for the previous years, but the effect would be on a prospective basis only. So- I don't think with respect to any of our previous matters, we have received any adjudication so far from PNGRB. Oh, it is not as if our earlier claims were denied, but we don't have adjudication about that presently, even till this date. Yes. All right, fine. When you say true-up, if you can just explain to the investors how exactly does it work? So, typically that would mean, say, if we were entitled to a tariff of, say, a rupee and PNGRB had allowed us 50 paise, the balance 50 paise we can recover on a prospective basis whatever revenues we have earned in the previous years from which this revised tariff was supposed to be applicable. But we cannot go back and apply tariff on the previous supplies. That credit would be available on our subsequent transportation, not the previous ones. That kind of complicates the whole thing that you had some customers earlier with whom you had maybe one year, three years, five years contracts, you have availed your services, and then the tariff gets revised, and you will be charging the new set of customers thereafter. I mean, how does it work? So, see, it's a combination of several factors, and with the unified tariff policy in place, I don't think it matters much. Eventually, somebody has to pay. Somebody is paying for somebody else in the unified tariff regime. Okay. It won't matter much. All right. My second question is about the subsidiaries, both the companies presently making losses. If you can just because it is also fixed tariff regime which we have over there. As compared to our regulated tariff in the parent company, how different is the business of subsidiary companies? Where exactly are we in terms of progressing and reaching some reasonable volume and revenue growth? What do we expect going forward? If you can give some understanding, please. Yeah. You are right in saying that these are like fixed tariff businesses, and I think the real issue that we have been facing here is around volumes. If you really look at the past track record, we have been in a scenario where we have been, I would say, kind of reporting or achieving better volumes by the day. I understand the gap is too large to bridge perhaps, but then, yes, I won't say we are there tomorrow. It may take some time, but yes, we are on course, and we all know these are like large infrastructure projects, and it takes time for industries to come up, large customers to come up along the way. Which I think is a bit long-run process. We are on course. We need to maybe give some more time before we start reaping rewards of our investment. If I may ask, in both these subsidiaries, out of the capacity which we have for transmission, what percentage of capacity is presently under contract with the customers? We have few key customers along these lines, but I won't say these contracts would be good enough to kind of reach to a break-even point. We need to keep developing more customers. In terms of specific contracts, I would need to maybe look into further details, greater details, and then come back. Sure, sir. We'll appreciate. Lastly, about dividend policy, what- I'm sorry, sir. Would you please rejoin the queue for follow-up questions? Sure, I understand. Thank you. Thank you. Participants, please make sure that you limit your questions to two per participant. The next question is from the line of Mr. Maulik Patel from Equirus Securities. Please go ahead, sir. Yeah, hi. Thanks for the opportunity. On this contracted volume, just want some more clarity. Typically, your transmission service agreement with customers, let's say you have an agreement for 5 MMSCMD of volume for a period of one year, and you have certain SLA, right, which is that 80% is the take-or-pay revenue. Now, let's assume that in this case of 5 MMSCMD of contracted volume, you will have 4 MMSCMD of take-or-pay. However, if customer actually transmit only 3 MMSCMD, in the earlier case, you would have reported only 3 MMSCMD as a volume, which was a physical transmission volume. Now, the number which you are reporting is 4MMSCMD, which is where you will get the revenue because as a take-or-pay is that, or you are reporting 5 MMSCMD, which is a contracted volume. We would report 4 MMSCMD and not 5 MMSCMD. Okay. This 4 to 5 is 4 MMSCMD right? Which is where you are generating the revenue. Yeah. Okay, got it. That's first. Second is on CapEx. Are these all these RoU, RoW are with us for a large part of the pipeline, and we are on track to complete our entire CapEx by March 2028? Do you see any delay in that? That's what the objective of the question. Yeah. I get your question. On CapEx, I would say the major project which gets stretched to March 2028 is Anjar-Palanpur. Yeah. Rest all we target to complete well before that. Okay. Even on Anjar-Palanpur, I would say we have almost all approvals in place. And we are in a good place in terms of that particular project. Got it. You will go for a refile and revision of tariff only after completion of Anjar-Palanpur because that's almost 60%-70% of your INR 3,500 crore kind of a CapEx. Is that understanding correct? So, you know that one of our appeals is still pending at PNGRB. Yes. And typically, we should go back with a revision request only after five years, unless we have good reasons to go prior to that. Since we already have a request pending at PNGRB, it may not make sense to go before 2028. Okay. So you will go after completion of this Anjar-Palanpur pipeline because then and then only the regulator will consider that pipeline as a part of your CapEx, as per the new PNGRB guidelines. Yeah, we can presume so. Okay. Thank you, and wish you a happy Diwali. Thank you, and wish you a happy Diwali as well. The next question is from the line of Mr. Madhur Rathi from Counter Cyclical Investments. Please go ahead. Sir, thank you for the opportunity. Sir, I just want one clarification. Sir, what is the capacity of our two subsidiaries? Hello? Management line, we cannot hear you. Okay. Between the two of them, the capacity stands at approximately 44-45 MMSCMD. Got it. Sir, that was from my end. Thank you so much and all the best. Thank you. The next question is from the line of Mr. Ajay Raj Singh from MIHIR H SHAH & CO. Please go ahead. Good evening to the management. I have a few questions. Hello? Yep. Yes, sir. Please go ahead. From what I understand, the commissioning of the INR 3,500 crore CapEx for the 700 km pipeline, this will be all back-ended. The revenues from the same would start accruing from financial year 2029 onwards. With an additional question to this, do we see any issue of availability of gas for this? It should not happen like what, maybe the pipelines are ready and we do not have availability of gas for the same. I don't think there is any issue about availability of gas because gas is available. I mean, although we as GTL, we don't deal with gas as a commodity. We only transport gas. We are not the owners of gas. But what we hear from the market is that there are a lot of projects and liquefaction projects which are supposed to come online in 2029, 2030, specifically from US as well as the new Qatari projects. Although some of the Qatari projects may get delayed because of the current situation. There are projects elsewhere as well, which are like, for example, Canada and Argentina, which would be ready to start supplying by 2029, 2028, 2029, 2030 timeframe. I don't think availability of gas would be an issue. Okay. My second question is on GIGL. One of the questions one participant had asked, I got a part answer to it. But I would just like to ask you this, that in light of the HRRL refinery starting and also the final pipeline connectivity to HMEL also done, do we see an impact on the volumes? At some point of time, what is your vision for GIGL? Because you think we will, at any point of time, right now, I believe it's in a very low double-digit utilization. If at some point, do we see making a 12% ROE, or maybe 12%-15% ROE on GIGL at some point of time? I would just like to have your vision on this thing. Because our subsidiaries have taken up a lot of our capital. And we also have to support it from time to time. So, that was my concern on GIGL. It would be good if you could address it. Yeah. So, as you rightly said, new projects have come into being, and these are being scaled up gradually. As they scale up, the demand for gas will also go up. That is where I think we will also get benefited. Simultaneously, I would say along the entire network, a lot of CGDs are also coming up, and that is also going to propel volumes. So, whilst I can understand we do not see a good worth at this point in time, these are certainly assets which are going to provide better returns over a period of time. Okay. Just a small question. The dividend policy, is it going to be same or what you have been following so far? I mean, based on last year? Yeah, we expect to be at the same place in terms of dividend payout, whilst it remains a prerogative of the board. Certainly, we do evaluate our cash situations, the capital requirements, and all of that stuff. However, we believe we will be in a position to retain those levels. Would the management at some point of time consider a buyback? The kind of network that you are having, INR 7,150 crore, and the current market cap being half of it, and cash if you are generating INR 500 crore-INR 600 crore every year, and already the CapEx that you have, you have enough cash for the same. Would you be looking at a buyback? That would eventually occur well for the shareholders from a wealth creation perspective as your projects, they start progressive commissioning. A good idea. The only thing is we are more focused right now on executing what we have on hand so that we can give superior returns in the course of next two or three years. I can understand there may not be much to see on an immediate basis, but certainly, over a medium-term period, we believe we would be in a position to offer superior returns. Not that we discount the idea totally, but again, not something which is there at the top of our agenda. Then I would just request the management to maybe consider a buyback at some point of time. Thank you. Thank you. The next question is from the line of Mr. Kunal Tokas from Fair Value Capital. Please go ahead. Hello, am i audible? Yes, sir. Okay. Thank you and good evening. My first question is on GIGL, your subsidiary. How much CapEx is yet to be done for that entity to connect to gas sources or customers? If you can please talk specifics there in terms of how many customers you have which are connected and how many customers are going to be connected and what that CapEx will be on per line? Where do you source your gas from? Is it the KG field or do you source it from GTL network in Gujarat? Yeah. On the first part, I think in terms of pending CapEx, I would say GIGL is almost done with all that was to be done. They have a small, I would say, outstanding CapEx of around INR 100-110 odd crores, which is under execution. We do not see any major CapEx requirements beyond this on a near-term basis. In terms of specific customers, I will need to certainly get into details and share the same at a later stage. Okay. But can you at least tell me if this INR 110 crore CapEx that is pending, are you connected to all major customers that you have on that route? Yes. This CapEx which is currently on would be revenue accretive day one. Okay. Just to confirm that after this INR 110 crore CapEx, there will be no insufficiency from an infrastructure point of view. The only thing that will remain is when the customers start ramping up volumes using gas from your network. Is that correct? Yes, absolutely. Okay. The second question is on GITL, your other subsidiary. It originally had a much larger pipeline plan, but because of problems with sourcing gas from the KG field, you had to shorten it materially. Is that subsidiary incurring penalties from the PNGRB in terms of performance bonds because of not meeting its CapEx requirement? What is the status of that subsidiary right now? [Top of the green joint venture.] GITL, see, is profitable on a standalone basis. You are correct in saying that we have not made any major investments given the fact that there are sourcing issues given the KG field disaster. In a way, we have tried to protect the capital there. We continue to evaluate the situation, not that we are not willing to invest, but yes, we do not wish to get into a scenario where we invest and we do not find customers on way. We continue to remain engaged with PNGRB as well on the matter, and they are also, I would say, better updated than any one of us in terms of the current state of sourcing as well as customer base. Sure. Okay. Yes, but are you incurring any penalties from PNGRB for not meeting your investment? None thus far. Okay. Thank you very much, sir. Have a good day. Thank you. The next question is from the line of Mr. Krunal Shah from ENAM Holdings. Please go ahead. Hi. Thank you for the opportunity. My first question is on this CapEx that we are undertaking of INR 2,500 crore. Anjar-Palanpur, Jamnagar-Dwarka, what are the demand pockets we are seeing to fill the capacities that we are adding in these regions? Anjar-Palanpur is basically we. Dwarka-Jamnagar, basically we are connecting Jamnagar where there will be a source. I mean, there is a gas field offshore Dwarka operated by SunPetro, and there are other entities also which are together negotiating common infrastructure. They expect to produce gas from this field, which will be transported through the proposed Jamnagar-Dwarka pipeline. That is one. The other one is Anjar-Palanpur. We intend to use Mundra terminal to transport additional gas in GIGL and GSPL. Anjar-Palanpur would basically be benefiting from additional volumes coming from Mundra LNG terminal. Okay, got it. Can you just highlight the volumes for this SunPetro field? What is the volume expected there? Minimum 2.5 MMSCMD, and it could, depending on further success, it can go up. Okay, got it. Great. My second question is on the- I am sorry to interrupt, sir. Can you please rejoin the queue? Yeah, okay. Thank you so much. Participants, to ensure that the management is able to address your questions, please limit to one question per participant. The next question is from the line of Mr. Priyam from Emkay Global Financial Services. Please go ahead. Yeah, hi. I wanted to understand, are there any penalties levied for missing volume projections in GIGL? No, as of now, we haven't faced any penalties. If you are not able to fulfill certain volume, there is no penalties for that because the volume gap is still large right now? No, see, we have been fulfilling all the customer requirements, whichever is on way. There is no customer that is not being served. Okay, got it. When you expect to reach profitability in GIGL? We have been making incremental progress. I think as situation improves, as new industries come along the way, it may be, I would say, maybe a period of another couple of years or so before we actually reach a break-even point for GIGL. Okay, got it. Okay. If I can- I am sorry to interrupt, ma'am. Can you please rejoin the queue? Thank you so much. Participants, please limit your questions to one per participant. The next question is from the line of Mr. Devraj from Forensic Investing. Please go ahead, sir. Namaste, sir. Sir, I want to know about this regulated equity, right? Whatever CapEx we have done, is it covered by the regulated equity? Sir, the second question on new competition, which PNGRB can permit new pipelines? So- Hello? I think, whilst I am not absolutely clear on the question, I would say PNGRB is right now clearing network on an open or shared basis only. We do not see any major issue there. I really couldn't understand your concerns around that. Sir, whatever we have CapEx, which we will go to the PNGRB? So it is covered under regulated equity? Because sir, there are some issues. Farmers don't give the land, and rent increases, or per acre that increases. So everything, is this risk covered? In the regulated equity, so couple of things. One is all the projects that we are executing are pre-approved through PNGRB, so we do not need to go for any subsequent approvals, one. Two, as I said, for almost all of the projects, we are right now on ground. We have most of the approvals in place. Very difficult when you implement projects at such a huge scale, you just cannot simply stand up and say, "Oh, everything is hunky-dory." So we will continue to face and we will see to it that we take due steps to mitigate these challenges. And whatever costs we incur gets capitalized and is a pass-through cost. Okay. The line for the current participant has dropped, so we'll take the next question from Mr. Dhruvesh Pujara from Urmin Group. Please go ahead. Hi, sir. Thanks for the opportunity. So I have two questions. First, on the dividend policy, you said it is similar to what it has been, so I just wanted to double-check that. So as per Gujarat government PSU guidelines, it is 30% of PAT or 5% of net worth, whichever is higher. So that number translates to INR 350 crore. So are we saying we'll be paying INR 350 crore dividend this year? That's the first question. I think I clarified when I responded to that query that it is a prerogative of the board, and board always considers also always takes into account several considerations like the planned CapEx and any other future requirements. We would say the current announcements or disbursement were basis board approvals. All that I said was we expect to maintain disbursements at these levels, irrespective of our current CapEx projections. Okay. Got it. Second question is- Sir, I request you to rejoin the queue. Oh. Thank you so much. Participants, please limit your questions to one. The next question is from the line of Mr. Manish Beria from Sasvat Vridhi LLP. Please go ahead. Yeah, hi. So, yeah, so the asset is newly listed, so some of my question might be quite basic, so please excuse my ignorance. So if I look at the net fixed asset, I mean, the regulated asset on which we get the 12% return, so this is something like INR 3,200 crore, I mean. So I just wanted to check that with the tariff that we have, with the volumes that we are doing, and with the likes that is there, so it will be counted by the cost of equity 11%, this INR 3,200 still stands, I mean. So I just want to confirm that. Yeah, that's true. The question I'm asking this is because you're doing the volume, something that you've shown in the presentation, something like more than 40 MMSCMD, and in the regulatory tariff that has come out in 2024 by the regulator, so they said something like 31.67 MMSCMD or something like volume. So you're doing quite high volume, and you are going to generate this year the net profit, excluding other income of INR 400 crore, so that's equal to 12%. So you're doing more volume, but still getting 12% return. But the regulator was telling us much lower volumes. The tariff was designed on much lower volume. So is there a risk? So that's why I'm wanting to check, I mean, why this is the there's a discrepancy here. Yeah. So, see, there are three different networks that we are operating on. One is a high-pressure network, another is a low-pressure network, and a HAPI network. So, the high-pressure network is currently at around 36 MMSCMD. That is what we reported for Q2, and that is based against the 31.4 or 31.5 MMSCMD odd figure which PNGRB took during the last revision. So, not that we are substantially out, one. Two is anything beyond, over and above that threshold that we actually execute, we get a benefit for the 50% additional volume that we bring in, and that benefit gets compensated. We actually get credit for that benefit if we utilize it towards capital purposes. So, I would say it's kind of a win-win situation if we are actually executing beyond 75%. Okay, understood. Thanks a lot. Just to add, maybe, like you said, about this dividend, I mean, I have still not understood. The other participant also asked, I mean, INR 7,000 crore net worth, so 5%, I mean, so it will be quite high, right, INR 350 crore. So, you mean to say you will pay INR 5 per share dividend that you announced last year, or it can also go up, I mean, if the things improve, to 5% of the net worth? See, it is difficult to declare a dividend for next year right now by me. We will have to leave it to the board. Yes, certainly, what we believe is that we would try to make sure that the shareholders are rewarded at least at the same rate. That is the intent. If we cannot improve upon, we would try and make sure that we maintain it at the current rates. But no hard feelings, we cannot guarantee the numbers. Understood. Thanks a lot. Thank you. The next question is from the line of Mr. Samir Shah from Vadodara Partners. Please go ahead. Yeah. Hello, am I audible? Yes, sir. Yep. Do I understand that as your other income gets translated into capital working progress, your investment gets translated into capital work in progress, we should be seeing over the next two, three years a drop in PAT or something, you know? Yes. As we use our funds, the cash balances that we have towards capital expenditure, definitely the interest income from deposits which are placed with the banks would come down and maybe reach a zero level. To that extent, the PAT might get impacted. Okay. Thank you. Thank you. Thanks, sir. The next question is from the line of Sriram, an individual investor. Please go ahead. Yeah. Hi, can you hear me? Yes, sir. Yeah. Thank you for the opportunity. I have just one question on your capital allocation philosophy, because this is something that you will be encountering multiple times over. Today, you have INR 2,500 crore of cash, and ideally, management is there to increase shareholder value. This INR 2,500 crore of cash, you can put it in investments or you can do a buyback because it is at 50% of this thing. Surely and definitely, the buyback is more value accretive to shareholders. But instead, you will go and make an investment into these pipelines, which have an IRR cap of 12%. In case there is a failed pipeline or something like the KG field happens, we don't get any cover on that. As long as this cash is sitting in the company waiting to be invested, we lose on some IRR. So, the total IRR of the company or the capital invested by the company will always, by design, be below 12%. In such a scenario, how is investing in new pipelines creating shareholder value? If the intent of the company is that I would place the interest of the government ahead of shareholder value, so be it. But please state it, is what I'm asking. Is shareholder value more important to the company, or is the government interest and national interest more important to you? I just wanted clarity on that, sir. That is my first question. So, see, I think if you really go through what we have done so far, we have really balanced our act. Whilst we have taken care of the national infrastructure requirements, we have also tried to reward our shareholders well. I understand your concern in terms of the fact that if we go for a buyback, that may actually bring in better returns for shareholders. But if you really look at it, the current cash balances are around INR 1,800 crore, and it is just a matter of time. Perhaps maybe in the third call from now, these balances may not be there, and we would be actually looking for funds. We have a robust expansion plan, of course, and these plans are not, I would say, figments of imagination. These are rooted in well-discussed, well-discovered plans, where we see a source available and supply points available. So, these are all being done keeping in mind the fact that we need to generate return for shareholders. I am sure few of our shareholders appreciated the fact that we did not go on, we did not went into investing in GITL mindlessly the moment we got to know that the source was not there. So, we continue with that philosophy. We will make sure that every penny that we invest, it gives its worth to shareholders and to the nation as well. Correct, sir. It is not that INR 2,500 crore is all that we are going to invest. We have a long way to go. We have high aspirations, and so we need to keep investing. Sir, my question is that whatever you invest, it cannot beat the 12%. I am sorry to interrupt, Mr. Sriram. You will have to rejoin the queue for follow-up questions. Ma'am, that was only my first question. Okay, please go on. No, I am just saying, I will just follow on with it. Whatever is invested by the company, there is a regulatory cap of 12%. Now you put idle cash, now you put failed projects, the IRR is much below 10%. If that is the case, why is buyback not at the management's thinking? If the concern is, no, our national interest is more important than shareholder interest, so be it. Please state that is what I am saying. No, no. See, for all of us, I am sure the national interest would be paramount. But I think the entire question is more around, I won't say the returns that GTL is generating, it is perhaps more around investments which we made in GIGL, and that is where I think the higher base counts. But fine, we all take business decisions, and it may go right and it may go wrong. But all that we are saying is that we are taking very nuanced decisions, very well thought through decisions, and we are trying to create a long-term shareholder value. Thank you, sir. Thank you. The next question is from the line of Mr. Rishabh Jain, an individual investor. Please go ahead. Hi, sir. Good evening. On the financial side, I would like to know what would be the maintenance CapEx that you will incur each year, and for the quarter two, why the other expense increased? Your question had two parts, right? One was maintenance CapEx and another? On the other expense, in the quarter two, it has increased. What is the reason behind that? Okay. See, the maintenance CapEx we expect to maintain between, I would say, INR 60 to 100 odd crores on a year-to-year basis over a period of next couple of years. It can be at the either end of the spectrum. Okay. In terms of other expenses, the key factor was that we sent a lot of gas up north, which required us to operate compressor for longer hours compared to previous quarter. That is where we had an increase in other expense costs. These are like pass-through costs, so we will have this all back when we go for next revisions. Okay, sir. Thank you, sir. Thank you. The next question is from the line of Mr. Nishit Shah from Pathak Exports. Please go ahead. Mr. Nishit? The line for the participant has dropped. Due to time constraints, that was the last question. I now hand the conference over to the management for closing comments. Please go ahead. Yeah. I thank everyone for joining us today and for the active participation and interest that all of you have shown. We are pleased to begin this structured engagement with the entire community and remain committed to maintaining a transparent and consistent communication channel. We also hope today's discussion provided some useful insights into our business and our priorities. In case there are any further questions, please feel free to reach out to our investor relation partner, Ernst & Young. We thank you once again for your interest in the company and look forward to a continued and meaningful engagement with all the stakeholders. Wish everyone happy festivities. Thank you. Thank you, sir. On behalf of EY, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.