Ladies and gentlemen, good day, and welcome to Q1 FY2025 earnings conference call of Petronet LNG Limited, hosted by Nirmal Bang Equities Private Limited. 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. S. Ramesh from Nirmal Bang Equities Private Limited. Thank you, and over to you, sir. Good evening, everyone. On behalf of Nirmal Bang Institutional Equities, I have great pleasure in inviting you all to this earnings conference call with the top management of Petronet LNG. Let me first congratulate the management on the results. We have with us the Director of Finance, Mr. Vinod Kumar Mishra, Rakesh Chawla, Chief General Manager and President, Finance and Accounts, Mr. Gyanendra Kumar Sharma, Group General Manager and President, Marketing, Vivek Mittal, Chief General Manager and Vice President, Marketing, Mr. Devendra Satpathy, General Manager, Finance and Accounts, and Mr. Vikas Maheshwari, Deputy General Manager, Finance and Accounts. Over to you, Mr. Mishra ji, for your opening remarks, then we'll have Q&A. Over to you, sir. Thank you very much. So I start my brief on this result, Q1 result of 2024-2025. During the quarter and at 30th June 2024, Dahej has performed exceptionally well, and the throughput has been 248 TBTU, as against 219 TBTU in the previous quarter and 217 TBTU in the corresponding quarter. So if you look at the growth, it has witnessed a growth of almost 13% from the previous quarter and 14% from the corresponding quarter. And if you look at the Dahej performance overall, it has been 109%, which is significant because we have rarely seen in the past, almost one or two years, this much of utilization. So we are happy to inform you that we have operated at 109% this time in Dahej, as compared to 97% in the previous quarter and 96% in the corresponding quarter. If you look at the overall throughput of the four terminals, then you will find that it is 262 TBTU, as against 234 TBTU in the previous quarter and 230 TBTU in the corresponding quarter. There is a growth of 12% from the previous quarter and 14% from the corresponding quarter. If you look at the financial results, the PBT this time has been INR 1,520 crore, which is ever highest in the first quarter in the history of PLN, and as compared to INR 1,996 crore in the previous quarter and INR 1,062 crore in the corresponding quarter. There is a growth of almost 53% from the previous quarter and 43% from the corresponding quarter of the previous year. If you look at the PAT, it has been INR 1,142 crore in the current quarter, as against INR 738 crore in the previous quarter and INR 790 crore in the corresponding quarter of the previous year. The growth has been 55% from the previous quarter and 45% from the corresponding quarter. So this is the result, which is substantially good because we have performed very well as compared to previous quarter and corresponding quarter. And this has been possible, this has been possible because of higher throughput and robust financial... And owing to the stable LNG prices and better utilization of the terminal and efficiency in the operations. So this is all from my side. Now, house is open for other questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Probal Sen from ICICI Securities. Please go ahead. Thank you for the opportunity. Good evening, gentlemen. First of all, congratulations for a strong set of numbers. I had a couple of questions. Firstly, with respect to the UOP, the INR 63 crore of provision that has been reversed, just wanted to understand, is that the incremental revenue booked because of higher volumes taken to settle the UOP obligation or, you know? 63 crore has been reversed because we have got the equivalent volume from the current customer, and we have earned more than that. You can say because the tariff in this year has been higher than the tariff for which the UOP was booked in 2021 and 2022. So we have received higher revenues because they have brought the volume. And accordingly, as per our settlement mechanism, we had to reverse the UOP charges of that year to the extent they have brought the volume in current years. Because for 2021 UOP charges, December 2024 is the last year, last month in which it can be completed, up to which it can be done. So, and for 2022, it is December 2025. But any customer can bring in the volume even earlier than that. So that is a ceiling limit, so accordingly, one of the customers has brought in the volume, and accordingly, that amount of UOP has been reversed, but more than that, it has been booked as revenue in the current year. So sir, if I may ask a follow-up, in terms of the third party regasification volume, which has gone up to 144 TBTU. Of that, how much would be this incremental volume brought in as a part of this settlement? Is it possible to segregate that? Yes, I can give you, but you are right that there has been almost 118 TBTU, 144 TBTU of this regas- Hmm. -out of this, 262, and, around 11? Yes. 11 point some TBTU is there. Eleven. Which has been brought in by one of the customers. Around eleven. So even excluding that, the normal run rate is still much higher than the previous quarters because of the moderate LNG prices and the higher demand. That's a fair way to look at it, right? True. Very true. Okay. Sir, secondly, with respect to... I'll just have one more question with regards to CapEx plans. If you can kindly refresh us in terms of both the progress on the petrochemical project and the capacity expansion projects that are going on, with the timelines and the investment plans for the next couple of years. Thank you. Okay. So first, you are asking for petrochemical project. So that we are progressing very well, and certain contracts have already been awarded. Like, we have awarded the contract for licenses, and for both the plants, PDH and PP, both. And apart from that, we have also awarded the contract for PMC. Engineers India Limited has been awarded the job for carrying out this project. And these are the two major contracts which have been awarded. And apart from that, other clearances have already been received, like environmental clearance and CRZ clearance, all are there in place. So there is no issue as such for starting the project. CapEx plan, as you are asking, normally, it is difficult to give beforehand something like that, but still, we can assume, like, 20% we can do in first year, and like that, 30%-40% second year, third year, maybe little bit higher. So we will tell you exactly at that point of time, but as of now, the work has started and the licensors has already started his working on these, packages. Our consultant, EIL, has already started working on the packages. So work is going on, and we will slowly, give you the details. And apart from that, as I have earlier also said, that, there has been a debt-equity ratio of around 70/30, so we are also lining up the, lenders for giving that debt as and when required. So we are processing that. Maybe within 2, 3 months, to 3 months maximum, it should be in place. So as of the now, we can say that there is good progress in the project. And apart from that, you have asked another question regarding capacity expansion plan of the Dahej terminal, so that is- Yeah. Going on very well. By March 2025, we expect that expansion to be completed. That means that the total CapEx by that time will be around INR 570 crores. So this is the CapEx, it's a low-hanging fruit. If you go for a greenfield LNG terminal like this, it will be having a CapEx of around INR 5,000 crores. So it's only 10% of the cost, and we hope that this will be completed by March 2025. This is our date deadline for that, and we will update you if there is any change, but we have this date as a completion date. Just to be clear, sir, by March 2025, then, we will have the full 22 million ton capacity available? Yes, yes, 22.5 million tons. 22.5. All right, sir, I'll come back in the queue five mode. Thank you so much. Thank you. Thank you. Thank you, sir. We have our next question from the line of Hemang Khanna from Nomura. Please go ahead. Hi, sir. Thank you for taking my questions, and congrats on a great set of numbers. So my first question is regarding the current utilization levels at the Dahej terminal. Could you please help with that number? Secondly, what is the overall inventory gain and trading gain in this quarter? Okay. So you have asked, overall percentage, I have told you 109%, and, the inventory gain is INR 261 crore this quarter. And, trading gain is, trading margin, which we have got, is INR 58 crore. Sir, utilization levels in this month would be what, after the quarter has concluded? Utilization, I don't exactly have, but this is not required, but still, we are doing good. And, perhaps we should do well also in the second quarter. But exactly, if you ask day-to-day changes, but you can say around 100% is there. Got it. Thank you so much. Yes. Thank you. We have our next question from the line of Kirtan Mehta from BOB Capital Markets. Please go ahead. Thank you, sir, for the opportunity. Basically, in terms of the... Do we have other visibility on are there more buyers who are coming back for this makeup cargo? Do we have a plan communicated from the customers about their pickup in Q2 or Q3? ... So I couldn't actually get the question. Just, can you repeat it? One of the customers, the way you said it, has picked up the makeup cargos during the Q1. Right. Similarly, are there any more customers who has communicated to us plan about makeup for their Q2 or Q3? What's happening actually, there is some annual delivery plan. There's already ADP for this particular contract. So some of the, most of the off-takers are still completing their annual delivery plan. So what's happening that they have still not fulfilled that plan, which they have already communicated us. So most of the customer, like GAIL, IOCL, BPCL, GSPC, Torrent, they are still fulfilling their annual commitment. So unless until they complete that, this, there cannot be additional volume being brought by them. But slowly, we hope that, maybe after September, they should bring some additional cargoes. But I think, by September, they should be able to complete, annual delivery, commitment. So hopefully, we should get in the third quarter, I think, for those customers. But one of the customers who has bought, basically... So I think one of the customer, he didn't have any annual commitment, so that's why he bought whatever volume they have brought in, it has been adjusted against their Use or Pay charges. Understood. So just follow up on the same. So what I understand is, roughly we had around 4.3 million tons under this Use or Pay commitment, where customer could approximately bring that amount. On, on this 4.3 MMTPA, if customers choose to bring them on, amount, effectively we'll be charging only the differential regas tariff, and that would accrue to the margin, not the full tariff. So is that a right way to think about this volume? Yes, you can say, because what's happening, we have booked Use or Pay charges at the tariff, which was prevailing at the time in year 2021 and 2022. But when they bring volume in 2024, naturally there's a hike of 5% every year, so according that differential will be there, that we'll be charging, and the balance, we are writing off that amount. So you can say literally that whatever we are booking is the differential of the tariff over 2021 and 2022 in the current year. Sure. Just one more question on the volume side. With the sort of the Dahej terminal not working through monsoon, some of the cargoes will get redirected to us. So how much additional cargo that we will expect during Q2? This data we cannot tell you right now, but, of course, in the result for the second quarter, we'll come back to you on this issue. But, I can only say- Somewhere in the range of around 10 odd cargoes, 10-12 cargoes that we normally receive. Is that a sort of a fair way to understand it? No, I cannot say anything like this. Sure, sir. I understand. Unless I have got some commitments on somebody, I cannot give you, because spot cargoes never come like this. Any day, a phone will come, and then we have to give a slot and they come. So it's not easy to say, predict anything that with whosoever is coming. Right. And one more question on the sort of the demand outlook. Recently, Reliance on their call mentioned that they have tried minimizing their LNG usage to zero after sort of the pickup in the LNG prices to about $12. Similarly, I think the power demand was very strong in May, but correspondingly, the peak power demand has sort of gone down. So will we sort of... Our volumes in Q2 would be sort of from at a modest level compared to Q1? No, no, I don't think so. This is a hypothetical question, but, I can only say one thing, that in this second quarter also, Dabhol will not be running. So only solace is that at least we will have sufficient cargoes because Dabhol will not be operating till almost September. So I think, so it should be good, quarter, second quarter. Other things you are saying is just hypothetical. I should not say anything on those things. Right. Just follow up on the CapEx part as well, which Probal earlier asked: Would you be able to share with us your CapEx target for FY 2025, specifically? CapEx? Okay, I will let you know. I'll just, I can just guess, give you. This year, CapEx target is around INR 3,500 crores. Indicative breakup across different packages? I will give you, but I will have to get it. I just told you what I just understood, but we can give you, but exact amount, how much in each project, we'll have to receive. So we can discuss you later. We keep it short. Sure, sir. I think I'll get back in the queue. I told you the CapEx, which could be there, but I don't say how much will happen. It's not an easy target, but we have kept it. Thank you, sir, for this clarification. It's very useful, and I'll get back in the queue. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sabri Hazarika from Emkay Global. Please go ahead. Okay. Yeah, good evening, sir, and congratulations on good set of numbers. So two questions- Thank you. Thank you, Sabri. Yeah. So first is, I mean, the adjustments for this quarter would be what? I mean, other expenditure, I think, went up significantly, so that could be something like INR 128 crore. Is that right, the change in provision between Q4 and Q1? Yeah, Sabri, INR 129 crore is the provision for Use or Pay charges that we create as an accounting prudence. Apart from that, the INR 63 crore that has already been discussed, the reversal. If we take out- 63 crore, INR 63 crore is part of revenues right now? No, no, no. No. It is a reversal since it is part of the other expenses. So INR 63 plus 129 crores- Yeah of provision, it comes to about INR 192 crore. If INR 192 crore is taken out, then the quarter is in line. Okay. You are saying INR 63 crore also is part of other expenditure on the- Yes, yes. Okay. Okay, got it. Got it. And, fine. So, that is first. Then, second is the usual, I think, regas service income is how much, and what was the Q1 CapEx? Q1 around INR 300 crore CapEx. INR 300 crore, INR 300 crore around. INR 300 crore was Q1 CapEx. Regas service income? Regas service income is around INR 891 crore. 890- 851. 851. INR 851 crore. Okay, I'll get back in the queue. I have more questions, so I'll come back. Yeah. Okay, okay, fine. Thank you. We have our next question from the line of Somaiah from Avendus Spark. Please go ahead. Thanks for the opportunity, sir. The first question is on this, the Dahej expansion. Any update in terms of, back-to-back contracts that in case you have signed anything, what is the expectation there? And also, what is the kind of utilization that you are looking for next year once it is kind of complete? We are still in talks with the off-takers, and we are expecting that some capacities will be booked by next year. Because this will be in operation by March 2025, so literally it will be available for the next financial year. So this financial year is ruled out, but next financial year, definitely it will be there. And we are still in discussion with the off-taker. As soon as there is any update on that, we'll tell you. But one thing I can say that, in fact, certain times we are feeling some constraint in giving the slots, but after this capacity expansion, we will have sufficient flexibility to allow the cargoes even have more short-term and spot cargoes from the next year. So that will be a solace for us, and we will be having a good throughput after that. But of course, we would like to get the capacity booked before next year, so that it is in place and maximum capacity is utilized. So anything in terms of your expectation for utilization of this capacity next year or say one year later, to what extent, so 60%-70% utilization is something that we can expect on this expansion capacity? It's like this, that, capacity 5 MTPA is being expanded at a very low CapEx. It's hardly INR 570 crores. Now, if you look at the payback period, it will not be more than, 2-3 years. So it's a low-hanging fruit. We have done the expansion, and as and as, as and when we get the capacity booking, definitely we will be letting you know. But, only thing I can say that we are not worried about any underutilization, because since the volume is increasing day by day, and the more imports is there, are there, and there is no likelihood that LNG prices will be too high in the near future, because, so many capacities are coming, and, apart from that, Europe is having sufficient inventory level of almost 81%. So all those factors are there, which are conducive to the price being moderate. So that is going to be there. So we are hopeful that capacity will increase. So definitely, Dahej will have the substantial share of that, increase in the, volume in country for consumption. So we are quite optimistic about that. But you are right that as and when, we get the capacity booking, we will let you know. But we are still in discussion, so we cannot give any premature comment on that. Understood, sir. Also, you mentioned this year CapEx hundred will be around INR 3,500 crore. So what would be the outlook for the next couple of years? Would it be a similar number, or would there be a step up because of Petchem at some point in time? Yeah, Petchem will pick up next year, definitely. This year it may not be too high, but next year and then again, next to next year will be higher. But, again, I have said that we should not be worried because, we are having a debt-equity ratio of 70/30. So we are tying up with the lenders for this project, and we may be tying up to the extent of almost, INR 10,000 crore-INR 11,000 crore, or maybe more than that, INR 12,000 crore.... So as and when it will be required, we will utilize those, limits, with the banks and, use it. And the cash, as far as the cash is concerned, we shall be having only 30%. So hardly it will be to the extent of INR 20,000 crore project is there, its hard cost is only INR 60,000 crore. So I think hardly 4,000-5,000 will be used from the equity and balance maybe from the debt. So I don't foresee any challenge as such, and CapEx may be higher in the next year, more than than the current year, because then Petchem will be having a project higher project activities over there. So I think this year it may not be too high, but next year it will be definitely higher numbers. Got it. So, sir, this, the current quarter provision of INR 130 crore, this is likely to be run rate for the next one or two quarters, based on your earlier provisioning formula or policy? Yeah, yeah. It's based on the provisioning, because INR 129 crore has been booked as provision for the quarter. We are booking this credit loss for each quarter based on our formula. We have discussed earlier also. So it is that part, where INR 129 crore provisioning is done. INR 63 crore, as I just said, this is a waiver of Use or Pay charges for one of the customers. So total INR 192 crore, we have taken the hit in the profit and loss account. Understood. Thank you. Thank you. Thank you. We have our next question from the line of Yogesh Patil from Dolat Capital. Please go ahead. Sir, thanks for taking my questions. First of all, congratulations on the good set of numbers. Thank you. Sir, if we calculate the amount of receivable that has reduced by INR 45.5 crore sequentially, but at the same time, sir, the company has waiver of INR 63 crore. Sir, as per our understanding, the amount of receivable reduced should be the same the waiver amount. Please correct me if I'm wrong. No, not like this. There was... Yeah. So, the receivables, actually, consistently creating provisions also against the receivables. And, this INR 63 crore waiver that has been done, that is done... Actually, see, you cannot directly correlate with the receivable how much is the receivables from quarter to quarter, because at the end of any quarter, there could be multiple reasons contributing to the receivables, basically. The billings and the open billings done. So, that cannot be correlated as such, that it will go down only by INR 63 crore. So, but then if we collect the basically the entire user base spectrum, yes, the receivable has come down. Okay. So sir, my second question, considering the calendar year 2024, already the 7 months are over. Can you give us an idea about the volume taken by the off-takers are as per the contracted quantity or lower than the contracted quantity for the 7-month period of calendar 2024 year? Just an idea. So, I'll just give it to my colleague, Mr. G.K. Sharma. He's GG Marketing. Volumes, good afternoon. I'm Gyanendra Sharma. Volumes are going as per the ADP, and we don't see any issue in that. We don't see any shortfall at the end of calendar year 2024? That will come up in the year. But our expectation is like that. Okay. Okay, okay. Thanks a lot. Thank you. We have our next question from the line of Nitin Tiwari from Phillip Capital. Please go ahead. Hi, sir, good evening. Thanks for the opportunity, and, congratulations on very good set of numbers. Sir, I had a basic gap in my understanding around Use or Pay, so please help me understand over there. So, first of all, like, you know, the Use or Pay that we report, that is in rupees crore terms. So when the offtakers are setting off the Use or Pay, are they setting off in volume terms or are they setting off in revenue terms? So because you have lost revenue, so should it be? Uh, volume. But, like, you know, shouldn't it all be in the, in the terms of revenue? Because you've lost revenue, right? I mean, no matter what volume is brought in, if your revenue is fulfilled, that should be making it good, right? Right. And because we are booking revenue as per the prevailing, tariff, gas tariff, so that is higher than whatever, Use or Pay charges was levied in 2021 or '22. No, no. What I was trying to understand is that your the revenue that you have lost, if that is made good, I mean, by bringing in of incremental volume, that should suffice the condition for fulfilling of Use or Pay charges. So why is that, like, you know, that the offtakers are made to bring in incremental volumes at a higher tariff now, and therefore, like, you know, there's a higher revenue recognition versus the original UOP charges being lower? Because it's revenue that you have lost in CY 2021 and 2022 and 2023. So I mean, as far, as long as that is made good, irrespective of what volume is brought in, that should be the sufficient condition, right? ... Yeah, they are bringing in the default volume, that should be sufficient condition, and only thing is the revenue booked at the current, applicable tariff, previous tariff. So it's the volume which is more important, and, this is the condition as per the settlement agreement, that they should bring in the defaulted volume over and above the annual delivery commitments which they have already made in the beginning of the year. Okay. All right. So, all right, understood that. So, and secondly, on the same point, so in this quarter's other expenses, so when we are making a provision, that is also part of other expenses, but when we are reversing a provision, that is also a part of other expenses. So I mean, help me understand that accounting. I mean, how is that working? Nitin, this is a reversal of revenue, not provision. Okay. See, we have booked the revenue regarding Use or Pay charges. Okay. And, let us clarify that this is, this was in the nature of liquidated damages at that point in time. So liquidated damages cannot be set off by future, obligations or anything. Mm-hmm. So whatever they are bringing in the future, like somebody has brought in the, in this current quarter, that revenue is booked separately, and we correspondingly, as per the settlement agreement, we are giving a waiver of that, Mm-hmm ... of that revenue booked at that point in time. Okay. So, is a waiver of revenue, reversal of revenue, actually. Understood. So, this is the revenue that we had booked in the past, and because we have not received it, now we are putting that in the expenses, and we have already received the new, basically revenue that has been brought in by incremental volumes. Okay. Whatever additional volumes have been brought, these are booked as current year revenue. Right. Right. There is no differentiation. But we are making a reconciliation that how much is the annual delivery commitment and how much they have additional brought in. Accordingly, we are making adjustment in the old use and pay charges. To that extent, we are writing it off in other expenses. Understood, sir. And the second question is actually a bookkeeping one. If you can give us the Ind AS impact in this quarter for maybe gross margin and depreciation interest, et cetera. Ind AS impact is INR 22 crore, as compared to INR 16 crore in the previous quarter and Q1 of the previous. So this is at, gross margin level, you mentioned? Yeah, gross- Yes ... margin level, INR 161 crore positive. Then, then at the other expenses level, INR 10 crores positive, and there has been a, loss of, minus, loss of INR 1 crore, forex loss. Then depreciation, INR 83 crores, and interest expense, INR 64 crores, so net impact is INR 22 crores positive at the EBITDA level. Sorry, depreciation, you said INR 83 crore, and interest is? Sixty-four. 64 crore. All right, sir. That's all from my end, sir. I'll get back in the queue. Thank you so much. Thank you. Thank you. We have our next question from the line of Raj Gandhi from SBI Mutual Fund. Please go ahead. Hi, thanks a lot for the opportunity. Just any clarity that you can give on the take-or-pay contract with the off-takers, which was to be signed along with the Qatar contract renewal? Thanks. Yeah, we are still in discussion, but all, as and when there is a means, final agreement with them, we will let you know. But these things are going on, but they have already committed that... Because when we signed, they have assured us that they will take it, and some terms and conditions are there, which are being finalized. After, finalization of those terms, the agreement will be signed. So we'll let you know that later on, but it, still it is going on. Sure, sir. Just one clarity, let us say on whichever terms if let's say minority are not okay with the tariff or whatever, and because this 7.5 million ton contract with off-takers comes for voting, so let us say if for whatever reason if the minority is not okay and they vote against, then the tariff will have to be reviewed again in that sense? No, it's not a question of voting. It will not happen. We don't expect such kind of thing. Of course, the tariff will not be so low that shareholders will not vote, the members will not vote. We will ensure that shareholders' interests are protected while- Sure. determining the tariff. So Sure. It will not be like this is a one-sided contract. It cannot happen. Sure, but factually, majority or minority will be required to keep extending that, 7.5 million ton contract. An annual approval from minority will be required. Yeah, it is. Every year we are seeking vote from the shareholders, so they will be required to vote on that, because it's one of the material related party transaction, and it's a back-to-back contract, so there should not be any challenge for anybody. It, in fact, is the assured business for next 20 years after 2028. Sure. So I don't foresee any challenge for that. But as far as the tariff is concerned, we will ensure that that is adequate, and certainly we will protect the interests of the shareholders. It should not happen that it's a one-sided, and off-takers may do something else. No, it will not happen. Sure, sure, sure. And- Thanks, thanks a lot for the assurance there. Thank you. Thank you. Thank you. We have a follow-up question from the line of Kirtan Mehta from BOB Capital Markets. Please go ahead... Mr. Kirtan, are you there? Mr. Kirtan, your line has been unmuted. Please go ahead with the questions. As there is no response, we'll move on to the next question. We have our next question from the line of Deepak Mandhana from Abakkus Investments, please go ahead. Yeah, thanks for the opportunity. Just wanted to ask, the trade receivables Use or Pay, which is subject to the settlement or disputed amount. If I look at the total dues are worth close to INR 1,800 crore, out of which you have already provided close to INR 500 crore. Now, when I read at your results, it says that the bank guarantees for the calendar year 2021 and 2022 has been received. One, what is the update on the bank guarantees for the calendar year 2023? First of all, I would like to clarify here that this settlement mechanism was approved by the board for calendar year 2021 and 2022. And we have received the bank guarantees to the extent of INR 378 crore for 2021, and INR 798 crore for the calendar year 2022. As far as the use of charges of 2023 is concerned, these are outstanding and we are pursuing the off-takers to pay it. We are not going for any settlement mechanism as of now, as was done for 2021 and 2022. Because in those years there was an issue of COVID, and there was demand destruction in that period. And again, 2022, you got Ukraine-Russia war, which has caused kind of, price hike, price, has gone abnormally high. Because of that, we have taken that consideration, and we have, we had given, this settlement mechanism. But 2023 is a normal year, so, we don't foresee any kind of relaxation in that. So we are expecting that they should be paid by the off-takers. Would the understanding be correct in the coming quarters, in the next two quarters, we don't expect any fresh provision to be made for this old dues? Provisions will be done. It's an accounting aspect. We'll continue to make the provision because payment, until it is realized, provision will continue. As per this time-based provision we are making, so accordingly, it will continue. But the only thing is that at the same time, continue to pursue our payments from the off-taker, so that if we get it in the meantime, then perhaps it will not be required to have the provision for those things. And just one more thing, in terms of count of number of customers, what is the number of customers that the amount is disputed with? Customers, our number is five. Five customers. Okay. These are all long-term capacity holders. Okay, just last thing. Yes, go on. The INR 63 crore which you have waived off this year, does that tantamount to completion with that customer, or is it still an open customer? It's still some volume is remaining. So he will bring some more volume. Okay. Okay, I get that. Thank you. Thank you. Thank you. We have our next question from the line of Hardik Solanki from ICICI Securities. Please go ahead. Yeah. So, as we have received a bank guarantee for, you know, CY 2021 and 2022, so we are expecting that even though, you know, they are unable to give the volume or come up with the additional volume, we can encourage this bank guarantee, right? So- Right. So there should be a reversal of provision, whatever we have made for the year, and if they don't pay, we can encash it, right? Absolutely correct. Okay, thanks. Thank you. Thank you. We have a follow-up question from the line of Sabri Hazarika from Emkay Global. Please go ahead. Yeah, thank you. Thank you for this opportunity. So, regarding the Petchem project, so this ethane propane handling, part of this business, so this is, this will be done through the third jetty only, right? This will be done through the third jetty, because that jetty is having the facility for propane, LNG, as well as ethane. So it will be handling all three products, liquid products. Okay. And it will be like a utility business, where, I think- It will be like a utility business, tolling business, like that, like LNG regasification. Okay, got it. Okay, and, and last question, Gorgon volume in Dahej, that number? Gorgon volume in Dahej is to the extent of 5.22 TBTU. Okay. Thank you so much, and all the best. Thank you. Thank you. We have our next question from the line of Vikas Jain from CLSA. Please go ahead. Thanks for taking my questions. I would just maybe ask, so about 11 TBTU is what you said has been adjusted in this quarter. What was adjusted last quarter, if you could remind us a total of how many TBTUs have been adjusted? Means you are asking that how much BTU were default and how much has been brought in the last quarter? Correct. You said something around 11.5 or something, 11.3 or something, this quarter. Yeah, it has been brought in till thirtieth of June. It has been brought in, and we have adjusted. Yeah, so that is, that was in this quarter, but there was more which was done last quarter as well, right? That is the March quarter. No, no, no. This quarter, they have brought it. Okay. So of the total remaining, only about 11 TBTU has been adjusted till now, till thirtieth of June, right? Yes, yes, 11 BTU. Okay. And, so, so just, to understand this INR 127 crore or something, are we mentioning this? It, it will be easier for us if it is mentioned somewhere in the provisions or something. Am I missing it? Because the number that you carry, that is not exactly 63, I understand you mentioned. But this provision number versus the number that you say in terms of accounting, there is some difference. So this, number for provision- Yeah, let me explain you that. 129, what you are asking about, no? Yeah, 129, that's right. Your number must be coming around INR 141 crore. Or 141, 142 crore. Mm-hmm. Against this INR 63 crores, actually, we had already created provision of INR 13 crores, and that has been also reversed. Uh. The reversal impact is 129, the net impact is INR 129 crore. I understand. So, Devendra, if we could mention this separately in the notes, that is something which could- See, this is not only a single reversal. Basically, there could be some tax reversal also. So it will be very complicated for the general shareholder to understand if we make that in the note, but this is the right forum to explain all this. Okay. Okay, I get it. So basically, that's what you were saying, the INR 192 crore is what is bloating the other expenditure. As against that, so this INR 63 crore would roughly more or less be linked to 2021, or is it linked to 2022? Because the- It is mainly 21. 2021 and 2022. Some part of 2022. Both. Okay. Okay, okay. Because, you know, the receivable number that you mentioned, the receivable, as in the receivable under Use or Pay, that has come down about, I think, about INR 50 crore or so for 2022 only. So there is some change there also. I mean, you know- There goes the adjustment, actually, 63 minus 13. Okay, the 13, 11. Okay. That is the INR 49 crores, around. Okay. Okay, got you. Okay, understood, sir. Thank you so much. And so just 1,261 is what you mentioned as the inventory gain number, right? Yes. Yes. 261, that's roughly equal to almost about 17%-18% of the PBTs. It's a pretty high inventory gain number, right? Yes, because of the LNG prices have gone higher as compared to the previous quarter. So that is the difference. Yeah, correct. There was clearly a very big sharp... So that's, that's largely a one-off kind of a move that has happened, right? It was $9.5. It was $9.5 last time. It is around 11.5 dollars at this point of time. Yeah. There is a difference. $2 difference is there always. Okay, okay. Understood. Thank you so much, sir. Thanks a lot. Thank you. Thank you. We have our next question from the line of Chetan Phalke from Alpha Invesco. Please go ahead. Hello? Hello. Yeah, yeah, please continue. Good evening, and thank you for the opportunity. So I just wanted to understand a few things on the macro or the big picture outlook on the demand side, especially in the Gujarat region. I mean, what would be the demand and supply situation, given the fact that even Swan is talking about operationalizing their Ratnagiri facility, and they are planning to double it from there on. So how should we see this entire utilization and demand scenario on West Coast and particularly in Gujarat as well? See, we are not concerned with anybody else. Let anybody start the terminal, it doesn't matter. We have our commitment on long-term basis. If you look at the long-term commitment at Dahej, it is almost 15.75 MTPA. 8.75 is our own, this market volume, and then balance 8.25 million tons is capacity booking. That part is ensured. Apart from that, whatever short-term cargos, additional cargos, spot cargos are coming, so that is making our terminal utilized at 109% in the last quarter. This is what I am saying. I am not concerned about other terminals being utilized because there's another issue of connectivity. All terminals are not so well connected as Dahej. If you look at the evacuation capacity here, we have almost five lines which are connected to Dahej terminal, and the evacuation capacity is to the extent of 35 million tons, whereas we have a plant of only 17.5 million tons as of now. So because of that reason, every terminal has a different geography and connectivity issue. It is not easy to evacuate the volume, because connectivity is a big issue. So I am telling you, never compare... Let anybody come. You see the terminal which has come in the vicinity of our Dahej terminal. You see Mundra, how much capacity it is being used. You see Hazira, how much capacity, 20%, 30%.... So what I'm saying, it doesn't matter which terminal is coming up and which is going there, but what we have, we have long-term commitment. Over and above, we have spot and short-term commitment also. So accordingly, we are utilizing, and that is, the reason behind that is why our Dahej terminal has prospered is the connectivity, because it is very well connected with five pipelines. So evacuation is much, much easier for any customer. Mm-hmm. Okay, okay. So, but how about the overall demand scenario utilization on the West Coast? How do we see volume growth moving forward? See, volume growth is already there. As, I was looking at the data in the month of, May, June, it is around, 213, I have seen, MMSCMD, which is much, much higher as compared to 188 MMSCMD of volume in the previous year. So you see, the growth is there, absolutely no doubt, because prices of LNG play a big role in utilization of gas in the country. And prices are little bit moderate, although it is around $11.5, little bit higher, but if prices remain, in this range also, utilization level will be higher because people will use it. And if it goes, it goes down further, then perhaps demand will further, enhance in future. So what I'm saying that, it's a good price still, and there is no expectation in future that it will be going too high. So we hope that utilization level will continue to soar, and this will be much, much higher in future. Okay, okay. So, sir, recent fluctuation in capacity utilization, is it due to evacuation issues or is it due to the pricing issue? Where would you attribute it? So what you are saying, recent? The recent fluctuation or recent downtrend in our utilization. Is it due to the demand/supply shocks or is it due to- You cannot call it downtrend because I had said that utilization level was 109% in this last quarter. And if it is 100%, it cannot be always 109%. But it is not so low that you can say that it has gone down substantially. It can pick up any time in future. So what I'm saying that utilization level is optimum and maximum possible, and perhaps it will not come down from that level. This is our hope, and demand is continuing, and commitment is being fulfilled by the customers in bringing the cargo. Yeah. Yeah. So, sir, what I was trying to understand was this fluctuation is due to pricing or the demand shock? And that, that's all I'm trying to understand. Demand power sector, I've just told you that power sector demand was there exceptionally high in May and June, because there was circular also in that connection, and because of that, the demand for power was increased. That has come down because monsoon has started now, and it is now spread all over the country. So power demand has come down. So this is the major reason that little bit it is down. Okay, okay. Got it, sir. That's it from my end, and thank you very much. Thank you. Thank you. Ladies and gentlemen, that would be the last question for today, and I would now like to hand the conference over to Mr. S. Ramesh. Over to you, sir. Thank you. So before we close the session, may I ask your thoughts on, one, the progress you have made on LNG as auto fuel for heavy vehicles? And secondly, what is your current reading of the potential for increase in utilization of Kochi terminal? So small scale LNG, although we are doing a lot of effort for that, as you know, that ss LNG is one of the projects which was initially conceived by Petronet LNG Limited. And we had been doing it a lot and perhaps... And this time we have put up 4 LNG stations, and all they are on the verge of commissioning, and it is along with one of the off-takers we have tied up. And more LNG station we are going to put up, but as you know, the potential is very high in this sector. Once this sector is instigated, perhaps this will have huge consumption because if somebody is having a fleet of 200 trucks and they convert it to LNG fuel trucks, perhaps it will be a huge benefit to the fleet owner as well as to the sector, because LNG, in any case, will be around 15%-20% lower in terms of prices. And that is a big gain for fleet owners. And it will help in also just in [sighting] this sector in future, and we can further propagate in other areas of the country, because it's only showcasing something before the customers, before the public, that this is the benefit you are getting, like it happened in case of CNG. So we are making all efforts, but it has huge potential, and we are hopeful that it will come in the near future. But we have started it, and we are talking to various fleet owners also, and more and more OMCs have come in this field. So they now also want to put up some LNG stations. So we are also doing some stations, but most of the LNG station will be put up by off-takers, and we will be happy in supplying LNG to these off-takers, to their stations. So this is our endeavor, that more and more LNG usage should be done in future. So that will happen, whether we put up the LNG station or it is put up by OMCs. So this is how we are going ahead. And second question you asked about regarding? The Kochi terminal. Kochi terminal utilization, it is, of course, doing good, but the only thing is that, as I said in earlier conferences also, that, connectivity with, with Bangalore will be there by next year, maybe March or March 2025. So I hope that once it is connected to Bangalore, then it will be connected to National Gas Grid, and then utilization will be much, much higher. But as of now, it is 20%-25%, I think, in between. So hopefully it will increase once it is connected to the National Gas Grid. Because at that point of time, it can be utilized by any off-takers, even for the domestic, supply of gas to the city gas distribution, projects entities, because, swapping of the gas is allowed. So once this is connected to National Gas Grid, anybody can sell domestic gas from, by taking gas from our terminal, and through swapping arrangement, it can be compensated to us. So we are hopeful that city gas distribution entities will require more gas from our terminal, because again, it is a case where, if it is connected with the pipeline, it will be falling in the Zone 1 tariff. And as you know that Zone 1 tariff is the lowest of around INR 39.90, so anybody would like to be in that range. So it is not feasible, even for any other supplier of gas, like IOCL, GAIL, to supply it from Dabhol or Ennore, once it is connected to a nearer source of gas, like Kochi. So it will be, in fact, cost efficient for the customers also. So we are hopeful that because of that reason, that there is a unified tariff in place, and it will be connected to the National Gas Grid. There is a likelihood that in the next, after March 2025, the capacity utilization will definitely increase. But we are hopeful it may reach up to 50%, 60% initially, and then it can enhance also. Understood, sir. Thank you very much, Mishra Ji. So with that, we are closing the session. So may I thank all the participants for making this a very interesting and a participative session. And I thank the management for sparing their valuable time and answering all the questions very patiently. Thank you very much, everyone, and have a good evening. Thank you. Thank you very much. Thank you. Thanks a lot. Thank you. On behalf of Nirmal Bang Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your line.