Ladies and gentlemen, good day and welcome to the REC Limited Q1 FY25 earnings conference call hosted by Elara Securities 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 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sweta Daptardar from Elara Securities Private Limited. Thank you, and over to you, ma'am. Thank you, Neela. Good morning, all. On behalf of Elara Securities, we welcome you all to the Q1 FY25 earnings conference call of REC Limited. From the esteemed management team, we have with us today Mr. Vivek Kumar Dewangan, IAS Chairman and Managing Director, Mr. Vijay Kumar Singh, Director of Projects, Mr. Harsh Baweja, Director of Finance, and other senior officials from the team. Without further ado, I hand over the call to Mr. Vivek Kumar Dewangan for his opening remarks, post which we can open the floor for Q&A. Thank you, and over to you, sir. Good morning, all the participants. It's my privilege to welcome you all in this conference call. As you might have seen, our Quarter One results for the current financial year, we have been able to maintain the growth trajectory which we had achieved last year. You might have noticed that our sanctions have gone up by 24%. In Q1 last year, we had been sanctioned with INR 90,797 crores, but in the current financial year in Q1, our total sanction standard is around INR 112,791 crores. The disbursement has seen a growth of 28% from last year's Q1 disbursement of INR 34,133 crores. Our disbursement has reached the level of INR 43,652 crores at the end of Q1 of this current financial year. The asset under management has seen a growth of 17%. You might have noticed that in FY23, our loan asset had increased by 13% from INR 385,000 crores to INR 435,000 crores. In the last financial year 2024, our asset under management had grown at the rate of 17% from INR 435,000 crore to INR 509,000 crore. In Q1, we have been able to maintain the growth trajectory of 17%, and our asset under management stands at INR 529,739 crore. Going forward, we hope to maintain a growth trajectory between 15%-20%, and most probably, it is going to be more than 17%. If we maintain this 17% growth in the next four years, we'll be able to double our asset under management to about INR 1,000,000 crore by the year 2028-29 itself. Earlier, we were thinking that we'll be able to cross this INR 1,000,000 crore mark by the end of 2030, but if we are able to maintain this 17%, we are quite hopeful that we might be able to reach the target of asset under management of INR 1,000,000 crore before 2030, maybe 2028-2029 itself we'll be able to achieve. Two significant developments have happened as regards our portfolio's concern. The renewable energy sanctions, renewable energy portfolio has seen a growth of 59% as far as sanctions are concerned. In Q1, we have sanctioned INR 39,655 crore, while the disbursement saw a growth of 249%. Disbursement was to the tune of INR 510,000 crore from the renewable energy portfolio. With regard to infrastructure logistics, sanctions have grown by 122% in Q1, which was about INR 90,815 crore, and disbursement increased by 78% to about INR 7,982 crore in Q1. The total borrowing outstanding has increased by 15%. Borrowing has increased from INR 397,552 crores in last Q1 to current year financial year Q1 to about INR 458,794 crores. Our debt work has seen a growth of 19%. Now it stands at INR 72,351 crores. The interest income on loan assets has increased by 20% as compared to Q1 last year, which was INR 10,465 crores. In Q1 of current financial year, our interest income on loan assets is about INR 12,514 crores. The net interest income has increased by 30% from INR 3,612 crores last year in Q1. The net interest income has increased to INR 4,713 crores in the current financial year Q1. The net profit has seen a growth of 16% from last year's Q1 of INR 2,961 crores. Our Q1 profit after tax is INR 3,442 crores. The yield on interest-bearing loan assets has increased from 9.82% last Q1 to this year's 9.99%. We have been able to reduce our average cost of funds by 18 basis points. From last Q1, it was 7.23%. Now our average cost of funds is about 7.05%. The interest rate has also improved from 2.59% to 2.94% as compared to Q1 of the last financial year. The net interest margin has also improved. Last year's Q1, it was 3.28%, and current year Q1, our net interest margin stands at 3.64%. Going forward, we will be able to maintain this net interest margin of more than 3.6% in the next 4 to 5 years. The return on net worth is about 19.51%. Debt-equity ratio is 6.27. The capital adequacy ratio is comfortable 26.77%. Another significant feature is that our gross NPA has come down by 7%. It is about 2.61% of our total assets, while last year's Q1, it was 3.28%. The net NPA has also come down from 0.97% to 0.82%. I would like to highlight that the growth opportunities are tremendous, particularly with regard to energy sanctions taking place in India, as the Government of India is committed to install 500 GW capacity or install electricity capacity from non-fossil fuel sources. Right now, we are about 192 GW capacity. Another 308 GW capacity will come. As per India's 14th National Electricity Plants, which has estimated that the country will require about INR 2,400,000 crore for this energy transition, which is taking place with regard to install capacity up to 500 GW, plus storage solution, plus evacuation through green energy corridors. So we do anticipate a huge growth in our loan book pertaining to renewable energy portfolio, which will represent 8% of our total asset under management. It will grow substantially to about 30% by the year 2030. It will touch a figure of INR 300,000 crore from the current level of about INR 39,000 crore. Ministry of Power, Government of India have also brought out clear-cut roadmaps for providing base load, actually, because commercially viable storage solutions are still a challenge for the country. The pumped storage project cost is quite high. Battery energy storage will depend again on the import of the batteries. For the time being, for the next 5-6 years, the base load will come from the coal-based generation only. That's why Ministry of Power has initiated that the country will require another additional capacity of 94 GW, for which debt financing would be to the tune of INR 660,000 crore. For that also, we are targeting this 20% of this business opportunity with regard to growth in the thermal generation. Another thing that I would like to highlight is that the Government of India has made its vision very clear that by the year 2047, India aspires to become a developed country. As of now, our per capita consumption of electricity is only one-third of the world average, and per capita emission of carbon dioxide is also one-third of the world average. In our pursuit to become a developed country, our per capita consumption of electricity will definitely increase. Right now, in the USA, the per capita consumption of electricity is about 10-12 times of the world average. Our per capita consumption of electricity may not reach the level of US level, but hopefully, we'll be able to cross the world average, and that also entails more than four- to five-fold increase as far as per capita consumption of electricity is concerned. So we are committed for a sustainable development of our growth story, and REC is going to play a crucial role in the nation building with regard to the vision of Government of India to become a developed country by the year 2047. With these opening remarks, we are open for questions and answers now. 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assignments. The first question is from the line of Naval from DSP. Please go ahead. Yeah, hi, good morning, sir. Thank you for the opportunity and congratulations on good performance. I had two questions. First is relating to provisions. So, sir, our original expectation for the current financial year was a reasonable amount of write-back, probably similar to what we had seen last year for the full year. However, in 1Q, we've seen some bit of addition on specific standard accounts. So does that mean that we are changing our guidance, or will we see more write-backs in the rest of the nine months? If you could throw some color around this, that would be very useful. So that is my first question, and then I have one more. Yeah, let me address this question. We had made provision of about 70% in respect to our asset assets, and we had a total of 16 assets at the beginning of this current financial year. Out of these 16 assets, seven are heading towards liquidation, for which we already met 100% provision. The remaining are the operating assets, and we are in the advanced stage of resolution of these assets, like Sinnar Thermal Power Plant in Nashik, then we have Hiranmaye Energy and KSK Mahanadi in Chhattisgarh. The bidding process has begun under NCLT process, and we hope to see a good response because the number of the acquisition bids that we received in that more than 20-25 applications have been received in respect of each of these assets, and they are very good quality bidders here. We hope to have very good resolution, like for KSK Mahanadi, the trust and litigation account itself is having INR 10,000 crore. So we hope to have a good resolution from these operating assets, and we hope to get a write-back of more than INR 2,000 crore in the current financial year. Yes, your point is correct that as per in the current year Q1, we have made expected credit loss on account of some loans from Andhra Pradesh that became from Special Mention Account One to Special Mention Account Two. But with the announcement in budget for support to the Andhra Pradesh initiative, we hope that this will also become the standard asset sooner than later. So sir, overall, would it be correct to assume that we will see more than INR 2,000 crore of write-back in the rest of the nine months so that for the full year, we have a guidance, we meet our guidance? I mean, just operationally, this AP account, do you see it getting normalized in the next one to two quarters? Would that be a fair assessment? Yeah, 3-4, maximum 3-4 months, because whatever budget announcement has been made, that will start flowing to Andhra Pradesh, and their financial position is likely to improve tremendously. Understood. Got it. Sir, the other question is relating to growth and specifically on thermal generation. So we've seen recently NTPC give a very strong guidance around capacity addition, and they've given a roadmap around it. Just wanted to get an update on the balance. So they've given an outlook on the 26 GW. So just wanted to get an outlook on the balance, which was supposed to come from players like NLC and Damodar Valley and some of the state Gencos. How is the plan progressing there? And if you can give some update around that opportunity, because that is where our lending opportunity will really emerge. So some update around that would be quite useful. You're right, actually, that out of 94 GW capacity, NTPC has targeted 26 GW capacity, but out of 26 GW capacity, 6-8 GW capacity will come in the joint venture of NTPC with other organizations. So NTPC joint venture projects we have been financing. When they do it on a standalone basis, we are not financing because they are a cheaper source of financing available. So we are targeting about 74 GW capacity we'll be able to finance through joint venture companies of NTPC, Damodar Valley Corporation, NLC there, then state Gencos. Most of the projects are coming in the state sector, and these are all brownfield projects. They are not greenfield projects because some of the old power plants, which had retired, in place of that, they are bringing the new units in the existing plant, actually. So for that, a balance of plants will be able to utilize the existing facility with regard to the coal handling facility, ash handling capacity of the existing plants would be utilized. So we hope that out of 74 GW capacity, which will come mostly in state Genco and joint venture of NTPC and NLC and Damodar Valley Corporation, we are targeting market share of 30%-40%. Got it. Sir, one last clarification is on the disbursement expectation in the renewables, including hydro projects. So we've had a good start compared to 1Q24. Just for the full year, how this growth is likely, this momentum that we've seen in 1Q, if you could give some perspective on disbursement for the full year, so that would be very useful. What kind of growth we can see? Would it be in similar zone or lower? Because our sanction last year was quite strong in this space. Yeah, that's it. Thank you. It will depend on the progress of the project, the execution of the project, actually. Most of the renewable energy projects normally get commissioned in time, and the execution level is fast. Those projects which we have sanctioned last year, the disbursement was only to the tune of 10% of the project cost. Say if INR 100 was sanctioned, last year they had used only INR 10, but current year, the replacement will be about 40%-50% of this project revenue. So out of INR 100, INR 40-INR 50 would be disbursed if you have missed the renewable energy project. Last year, our total disbursement for the entire year was INR 161,000 crore. This year, in Q1 itself, we have been able to touch INR 43,000 crore. We hope to cross INR 190,000 crore of disbursement in the current financial year. It may go up to INR 2,000,000 crore also. It depends on project execution. Out of this, say INR 190,000 or INR 2,000,000 crores that we are targeting for disbursing in the current financial year, the transmission and distribution sector will constitute about 40%. Renewable disbursement is going to increase substantially, about 20%. We are targeting a minimum of 20% will come from the renewable energy segment. Remaining will come from conventional generation and infrastructure logistics. This is very useful, sir. I wish you all the very best. Thank you. Thank you so much. Thank you. Thank you. The next question is from the line of Shreya Shivani from CLSA. Please go ahead. Thank you for the opportunity. I have two questions. So first is on the infra segment. So last year, we had an idea of the projects that you were disbursing for. I mean, Mumbai Metro and Bangalore Metro were some of the projects. Can you give us some details of what kind of projects we have disbursed for in 1Q? Are they PPP model, or are they still government projects that you are basically participating in? That's first. And so second, on your gross Stage 3, so it looks like Lanco Amarkantak, we've still not removed from gross Stage 3, right? So when something like that happens, that you've already written back the provisions, which you did last quarter, but probably all approvals have not come through, and that's why you've not removed Lanco from Stage 3. So in that case, if this delays any further, will you have to build more provisions for this, or how does the accounting work in such a situation? If you can help us understand that. Thank you. Let me first tell you about this disbursement with regard to infrastructure logistics. Thank you. The sanctions this year we have been able to do for this multimodal corridor, this Maharashtra State Road Development Corporation. We had sanctioned project worth INR 10,000 crore. Then Expressway, Samruddhi Mahamarg from Jalna to Nanded. And we are targeting with regard to disbursement, you had asked about disbursement with regard to infrastructure logistics. Other than this, MMRDA, Metro Projects, and Mumbai-Pune Expressway, the disbursement are there in the state of Hindustan Petroleum Corporation Limited. So substantial disbursement has happened. Then we also financed Jindal Steel & Power Limited in Odisha that also has seen growth. And airports, we have done Visakhapatnam Airport, then Goa Airport. Disbursement has started doing there also. And some road projects, Kagal-Satara projects, their disbursement has increased. With regard to this delay in this Lanco Amarkantak case, Lanco Amarkantak case hearing in NCLT is already over, actually. And NCLT has reserved the order for reserved order. Now they are started, they are going [in] chronological order of completion of hearing. So we hope that final order will be issued in the month of August itself. Like for Nadai, we got the order on 29th of July. So there we don't have to make any extra provisions because the NCLT resolution is happening based on the resolution plan already and will get some additional write-back because we had not taken entire write-back amount. We'll get some additional write-back from Lanco Amarkantak also. Got it, sir. Thank you. Just one last clarification. So the projects which are probably closer to resolution right now, which we should pay attention to, is KSK, Sinnar, Hiranmaye, or Madurai also? Something that we should probably keep an eye on. Madurai has already been done. I mentioned that on 29th of July, we got the final order from NCLT. Madurai has already been resolved. And we have restructured this TRN Energy that resolution plan is already being completed. Then Bhadreshwar, Konaseema Gas Power, that resolution is going to be completed now. And with regard to KSK Mahanadi, Hiranmaye and Sinnar, the bidding process has already commenced, actually. So we hope that I think the last date of final bid submission is in the month of August itself. By the end of August, we'll get that final bidding. Based on that, we'll be able to resolve in the next two to three months. Got it, sir. And so just clarification, Nadai was a INR 560 crore project, right? Which you're saying is resolved. Madurai Power Corporation. ₹560. Madurai ₹560, ₹1 crore was our outstanding. And there. 71%. We had met 71% provision, but expected recovery is INR 183 crore. Our expected recovery is to the tune of about 33%. Got it. Thank you so much. Very useful. Small right back will also be there in this return date. Thank you. The next question is from the line of Manish from PhillipCapital. Please go ahead. Yeah. Thanks for the opportunity. I have three questions. One pertains to the sanction in the generation side. Can you give us some color whether it pertains to public sector entity or private? So I think we have done a total of 4 large-scale thermal power projects. Three of them are in the state sector. Two are in Madhya Pradesh, one in Maharashtra, and one is in DVC in West Bengal. So total roughly INR 40,000 crore, 40 megawatt capacity has been sanctioned, both in state and DVC, for a total loan amount of INR 31,000 crore. Typically, what can be the AUMs in this generation projects? If you can give some color. In the generation project, it depends on the rating of the entity, actually. It varies from 9.5% to up to 10.5% or 11% also. Depends on the rating of the entity which is executing the project. If I may just add that highest yield that we are getting is actually on the thermal generation projects, which is in excess of 10% as of now on the outstanding loan pool. That is what actually we are also targeting, that we'll take a good share in thermal generation capacity financing opportunity where the yield will be higher as compared to other segments in the power sector. Got it. The next question is on the foreign currency borrowing. So in the last 4 years, the share of foreign currency borrowing increased almost from 16%-30% right now. How should we look at this space? Can you increase your foreign currency borrowing further from here? Yeah. As of now, foreign currency borrowing is a cheaper option as compared to domestic borrowing, actually. We have used some innovative hedging techniques. That's why our all-in cost, including hedging cost, is below 6.7%, actually, most of the loan in foreign currency which we have taken. That's why you might have seen that the proportion of foreign currency borrowing has increased substantially to about 29%. You can still increase that there is no internal cap around that. Is that an understanding? No, no, no. There is virtually no internal cap as such. But we have to apply to RBI in case we want to go under the approval route. Under the automatic route, it's only INR 750 million that is allowed in a year. So under approval route, we normally apply for $2 billion at one stretch, which is allowed for a period of 6 months. So it depends upon RBI also as to how much approval they grant. On that basis, we raise the foreign currency borrowing. But FCNRB loans are in addition to that. So there is no cap on that. It's only for the external commercial borrowing, which is for a tenor longer than 1 year that we have to seek the approval of the RBI. So the current approvals are in place right now, or we have to apply just to get clarity about FY25 foreign currency borrowing amount? Already about INR 700 million is there, which is present, available to us. So after that, once we address that, in that case, we'll be approaching the RBI. So normally, they grant the approval within a period of one month. So that's not a difficult process. Last year, we applied twice, and we got the approval also twice for $6 billion. Got it. Finally, if you can share Stage 2 asset number for the quarter at the end of the quarter. The loan balance against the Stage 2 asset is INR 54,333 crores, and against which the final ECL is INR 552 crores. This includes that AP account, correct? If I'm not wrong. Sorry, couldn't get you. This includes that AP account which got. Some of them, the EPL, this stage two asset, it is mainly from Bangladesh. Okay, okay. Got it. Thank you. Thank you for answering my question, sir. And all the best. Thank you. The next question is from the line of Shreepal Doshi from Equirus Capital. Please go ahead. Hi sir. Thank you for giving me the opportunity. My question was on infrastructure projects front. Last quarter, we've seen decent traction across sanctions, disbursements, and also the share of infrastructure book increasing. Incrementally for the year, how are we seeing that book shaping up in the overall loan book mix? And then as well, if you could highlight the blended yields in this particular segment for us. Yeah. Right now, actually, our hands are full with our power sector project and renewable energy projects, actually. We are getting a number of projects from renewable energy portfolio and as well as conventional generation. So we are a bit choosy with regard to financing infrastructure logistics now. We have taken a conscious decision to be a bit choosy. Initially, we were cautious. The first year, we had sanctioned only those projects which were supported by the state government guarantee. Now, we are targeting only those infrastructure logistics projects where our yield is more than 9% and where the asset quality is good and where the entity is good and where the revenue cash flow is ensured. Based on that, only we have decided to go slow on this infrastructure logistics. Right now, our total portfolio of infrastructure logistics is about 12% of our total asset under management. Going forward, it may go up to, say, 20% by the end of 2030. The 30% will come from renewable energy portfolio, 20% from infrastructure logistics, remaining 50% will come from conventional generation, transmission, and distribution. Got it. Got it, sir. That was helpful. The second question was on the trend that we saw during the quarter where there was an internal movement between GS1 and GS2. Are we seeing any further, any other account which is also behaving in a similar manner? No. Only in the state of Andhra Pradesh was there. No other account is there, which is moving from Stage 1 to Stage 2. Andhra Pradesh also, the situation is going to improve now, actually, because a lot of support has been announced in the state of Andhra Pradesh. We hope that they'll become a standard asset in the next 3 to 4 months. So this is the low-order state we are experiencing or seeing any such behavior which could lead to such, I mean, slip between Stage 1 to Stage 2? No, no other state. Only Andhra Pradesh only. Got it. Got it. Thank you so much. Thank you so much for answering my questions. Thank you. The next question is from the line of Nikhil Nigania from Bernstein. Please go ahead. Hi. Thank you for taking my question. My first question is on renewable loans. I wanted to understand, are we funding merchant renewable plants as well, or is PPA a condition precedent for loan disbursement? So largely, the projects that we have sanctioned so far are in the category of having PPA, and PPA from largely, again, from SECI, NTPC-like organizations. We have done 2 for state PPA as well. 95% of our total funding is based on PPA only. And there's a very small component of C&I, and of course, a very, very small component of merchant also. Understood. And would it be fair to assume this strategy won't change going forward? The preference would be towards PPA and to minimize merchant renewable plants? Yes, yes. Going forward also, we have given priority to only those projects which are having PPA along the by 2025 years, PPA, which are to renewable energy projects. That's helpful. Thank you. Secondly, just on that note only, in terms of competition on funding the renewable space, do you see incremental interest from banks to lend to renewable plants, or is it still largely you and your peers? Competition is there. Definitely, everybody wants to increase their green portfolio. Our rates are very competitive. Our rates are quite competitive as compared to banks and obviously with our peers also. We are targeting a market share of about 20% because the space is so big. Because I told you that 308 GW capital is going to come in the next four to five years. We are targeting a market share of 20% of this renewable energy opportunity which is coming out. Understood, sir. Thank you. If I may squeeze in one last question. Regarding the loans disbursed now as part of the LPS scheme, I wanted to understand what kind of guarantees do we have? Is it state guarantees, or is it something like the tripartite agreement we have for the RDSS loans? If you could give some clarity on that. So under the LPS scheme, all the loans advanced to all the state discoms are backed by state government guarantee. So that was the scheme of LPS. So entire loan outstanding is having a collateral of state government guarantee. And with regard to the RDSS also, RDSS counterpart funding also, that also is that the state government guarantee supported by the Direct Debit Mandate, which has been insisted by the Ministry of Power. So RDSS loans counterpart funding will be supported by state government guarantee and Direct Debit Mandate in favor of Reserve Bank of India. Got it, sir. But then the unsecured loans which we see as part of the book, if you could give some color, what are those then which went up also this quarter? Whether hypothecation of assets, hypothecation will be there. Otherwise, you can throw light. So I think largely, the projects are CapEx projects. But then some of the projects like LPS, LIS, and RBPF, these three categories are non-CapEx projects. But all of these three categories, LIS, LPS, and RBPF, are backed by government guarantee. So mostly there are certain loans, MTL, STL, etc., which is a very small component. And there also, the state government guarantee in most of the cases is there. But sometimes it takes some time to get the government guarantee. So till that time, they are shown as unsecured. But once we get the guarantee, then automatically they are transferred to the secured sector. Okay. That's very helpful. Thank you so much. Those were my questions. Thank you. The next question is from the line of Arvind from Sundaram Alternates. Please go ahead. Hello, sir. Thank you so much for the opportunity. Congratulations on the good set of numbers. Sir, when I see distribution sanctions and disbursements in the last 4 quarters, especially RBPF and LPS and LIS schemes, especially the disbursements have been almost equal to the last 9 quarters of sanctions. It essentially means that we have disbursed almost all the sanction numbers. I mean, going forward, where would the disbursements in the distribution part of the schemes come from? Because as you mentioned, that 40% of the overall disbursements will come from distribution schemes. Which set of schemes are you referring to, sir? Are you referring to distribution CAPEX or anything else? Let me just throw a light on this. Most of the disbursement in distribution segment will come from Revamped Distribution Sector Scheme. Now, all the loss reduction work has already been awarded last year. Now, after election, the execution speed is increasing. And some of the states, which have not been able to qualify under the reform evaluation framework, so they are seeking bridge loan from us. Till the time they become eligible for Government of India grant, they will also be seeking bridge loan from us. So we do see a substantial jump with regard to RDSS financing. And LPS, you may be aware that LPS scheme was started in June 2022. And it is for a period of four years. So still, some disbursements are there. Some disbursements will keep happening until 2026. And RBPF is a revolving bill payment facility. So that repayment and disbursement will keep happening. But largely, it will come from RDSS loss reduction work. Plus, we are also financing these prepaid smart meters. Prepaid smart meters, 25 crore prepaid smart meters are to be installed in the country. Out of 25 crore, 14 crore prepaid smart meter orders have already been placed. So this is being done by AMISP Service Providers, which are private players. They are doing on project mode. And they'll be installing the prepaid smart meter, and they'll be operating and maintaining it for a period of 10 years. And they'll get revenue from the distribution company at the rate of per meter per month rate for which they are submitted with. So with this private sector players, also we are financing under prepaid smart meter category. Both prepaid smart meter and loss reduction work are going to increase substantially in the current financial year. Just if you can throw light on the renewables portfolio also, sir, we have sanctioned a large chunk of the orders in the renewable space. Let's say in the last 5 quarters, I can see almost INR 175,000 crore of renewables has been sanctioned. But can you give us an idea on how much would be large hydro and how much would be non-large hydro? Yeah. Let me just give a brief background. Last year, in the month of July, we had organized Green Finance Summit in Goa on the sidelines of G20 Energy Transition Working Group meeting. We had done detailed one-on-one interaction with the renewable energy developers, OEM for the electric buses, and other technology projects also. We had been able to sign MOUs worth INR 285,000 crore in July 2023. After signing these MOUs, we sanctioned with INR 136,000 crore, INR 516,000 crore, INR 516 crore projects which covered the entire gamut of renewable energy category. Like solar projects, we have sanctioned worth about INR 20,956 crore. Solar module manufacturing was INR 21,565 crore. Large hydro was INR 32,450 crore. Then wind turbine manufacturing was INR 43,195 crore. Wind power project worth INR 3,453 crore. Hybrid solar wind was INR 10,098 crore. Small hydro was INR 837 crore. Pumped storage projects were worth INR 28,304 crore. Green Hydrogen and Green Ammonia projects about INR 8,000 crore we have sanctioned. Electric Buses with associated charging infrastructure we have sanctioned about INR 7,214 crore. So you can see that entire gamut of renewable energy projects we have been sanctioning. Last year, the sanction was INR 136,000 crore. And this year also, sanctions will cross INR 150,000 crore easily or may go up also. And you may see that ideally, the renewable energy project, other than large hydro projects, take quite time, 6-8 years time for commissioning. But other than large hydro projects, solar and wind projects, they do get commissioned very fast within a period of 2-3 years. So a lot of disbursements, whatever we have sanctioned in the state of projects, other than large hydro projects, they'll all get disbursed in the next 2-3 years. Yes, sir. This is very helpful. Thank you. Thank you. The next question is from the line of Ashish Sharma from Oak Lane Capital. Please go ahead. Yes, Ashish, you can go ahead. Yes. This is on the credit costs. So you mentioned that around INR 2,000 crore of RIDEPAC can flow through. So you expect this to flow through in FY 2025 itself, or will it spill over to FY 2026? And second question related to that is that XOF RIDEPAC in a normalized, what should be the credit cost we should assume? As I have mentioned, this operating assets like Sinnar Power Plant in Nashik, KSK Mahanadi in Chhattisgarh and Hegel Lake project in West Bengal, they are in advanced stage of bidding. We hope to conclude the bidding in the month of August itself. All the bids are going to be received in August, and we're able to finalize it by September. We'll be able to submit the final resolution plan to the NCLT in state by the end of October to December period. This all resolution plan will be submitted. We hope that all these INR 2,000 crore RECPDCL will get in the current financial year itself. If I could add anything, Ash. Sir, second question was on the normalized credit costs. Assuming RIDEPACs are not there, what should that number be? Otherwise, the credit cost is only in the case of the standard assets, the provisioning which we are making. That is only about 0.4%. So once all these assets are resolved, then there won't be any virtually NPAs which will be in our books. So by 31st March, all of them will be resolved. Either it will be technical write-off or otherwise they will be resolved. So after that, it will be only standard asset provisioning to be there. Nothing else. Okay. Perfect. And just one clarification. You had mentioned on the growth part that disbursements could be touching INR 190,000 crore this year, which is closer to 20% growth. But on the guidance on the growth part, we are being a little conservative. Is it that we should assume higher payment? Are the payment repayment rates higher? Actually, we are targeting growth of 20%. But to be honest, it is right because some of the repayments are also happening, actually. And what happened in this particular renewable project that the developer wants to come out of the project after selling the project, actually. So repayments are quite far in this particular renewable energy project. That's why the growth we are targeting from it may vary from 17%-20%. Perfect. So at 18% disbursement, growth should be closer to 20%. I mean, I think that's why I clarified that you were conservative in your guidance. Yeah. Thank you. The next question is from the line of Misham from MLP. Please go ahead. Hi, sir. For me, I just had one question. If you've spoken or engaged more with the RBI, what's the latest thinking on the project finance norm that was proposed? Yeah. As you might recall that when we had this conference call after our results, that time RBI had come up with this tough guidelines with regard to higher provisioning for the under construction projects over a period of three years, actually. That was tough guideline. RBI had sought comment from all the stakeholders by 15th June. We all submitted our comments. With regard to REC, let me clarify that since REC is an NBFC, Non-Banking Finance Company, and we have been following Indian norm, accounting norm, our profitability will not be affected at all. Should RBI stick to its own guidelines? That is, I think, what we are expecting that they'll perhaps not keep that strict provisioning norm. But should they do it, what will happen is that we'll have to keep higher provisioning for under construction projects, particularly those projects which are delayed projects. If we have to make high provisioning, the credit for the cost of lending will increase a bit in respect of those projects which are under construction and which are delayed projects. Got it, sir. So historically, when RBI has made any kind of these provisioning norm change or accounting changes, even when NBFCs transitioned to ECL, they also provided for a mechanism saying, "Look, you will operate at least with the floor key, or India's provisions will not be lower than your IGAP provisions." So now, if the regulation is such where the banks have to operate at this 5% standard asset provisioning, do you think that you, despite being an NBFC, will be prescribed to maintain a floor on this thing? Because that's traditionally how the RBI has operated. So we're not very privy to how the RBI is thinking. So if you could shed some light on how the RBI engagement is going on over there? Actually, we have our board-approved ECL policy. And according to which the floor rates, whatever is in the policies there, we are already maintaining as per Ind AS itself. And every quarter, when the results are published, before that, we have a comparison of provisions as per the RBI norms and as well as as per the Ind AS. Ind AS is given effect in our balance sheet also. And whatever the difference is there, if any difference is there, that is always passed to the OCI through impairment reserves account. And in case if the RBI comes up with a new policy, we'll abide by that. But we have not only we and all the NBFCs have given their observations and the comments on the proposed policy. Let's wait for the final outcome, and we'll abide by that. Gotcha. So just one last question. In terms of timelines, when can we expect to hear the final guidelines? Only RBI knows. We cannot tell the timelines. All right, sir. Sir, thank you so much. That's it for me. Thank you. The next question is from the line of Aditi from CD Equisearch Private Limited. Please go ahead. Good morning, sir. My first question is that how profitable are you people with the composition of your current loan group, where your core assets in generation, transmission, and distribution are either blocked or marginalized? Sorry, sorry. You were a little louder. Aditi, we could not hear you clearly. Could you please repeat? Yes, sir. Sir, how comfortable are you with the composition of your current loan group where the core assets with generation, transmission, and distribution are not growing or either marginally growing? Yeah. As in the opening address, I had mentioned that conventional generation sector is looking at some more this conventional generation project, coal-based thermal capacity is going to be added next 5 to 6 years. So right now, our portfolio of conventional generation is about 28%. It might increase from 28%; it might go up to 30%-32% also. And transmission and distribution, as part of energy transition, this evacuation of renewable energy will still require green energy corridors. The transmission will be hoped that we can maintain that transmission portfolio. And with regard to distribution, we'll be able to maintain that distribution portfolio also because what is going to happen is that RDSS will continue the next 2 to 3 years. Thereafter, what has happened is that the entire distribution network in the country is quite old, 40-50 years old. The distribution companies will need to extend the need or replace it. This CAPEX requirement in distribution sector will be there in the next 10-20 years, actually. But as I have mentioned, our renewable energy portfolio will increase. Right now, it is only 8% of our total loan group. It will increase to, say, about 30% in the next five to six years. The share of conventional generation, transmission, and distribution will all combine to be about 50%-60%. Sir, but the government is paying similar to the CAPEX. Why is it not growing in your loan group? Sorry. Not very clear. Your voice is not clear. Please be a little louder. Sir, the government is spending quite a hefty amount in CapEx. So why is it not growing in your loan group? Government is spending a lot on CapEx. Why is it not growing? Well, let's check. I think you're talking about perhaps RDSS in which government is giving grant of 60%. In fact, I have to explain this maybe slightly in greater detail. What is happening is that government grant is contingent upon utility meeting certain benchmarks or some certain parameters. Now, some utilities are meeting, and therefore, they are able to draw this 60% grant from the government on time. Despite that 60% grant, they still need funding for 40%. Now, initially, what utilities are doing is that they are utilizing the 60% and doing the CAPEX work. And therefore, our disbursement in such utilities are slightly delayed. But then there are utilities who are not able to meet certain parameters, and they need this bridge financing. Loss reduction, which is close to INR 140,000 crore works, have already been awarded. Now, the pace of work is picking up, and the disbursements have started. In the coming quarters, you will see that a lot of disbursement is happening, particularly in those states who are not able to meet the parameters which we call REF in RDSS. They'll need bridge funding, and they'll also need this 40% remaining amount as well. So I think since this has been awarded only six months back, some of these states are getting this support of 60% grant from the government, and many are not still able to get it. The disbursement is likely to pick up now in RDSS projects. Okay. Sir, my second question is that what is the lending rates in the infrastructure and logistics against the traditional core assets? Lending rates are also more than 9%, 9%-10%, actually. Traditional is also almost same, actually. Traditional sector also, 9%-10%. In some cases, it is up to 8.75%. Like A-rated distribution companies under RDSS, they are getting 8.75%. But mostly, it is between 9%-10%, or it can go up to 10.5% also. Okay. Thank you. Thank you. The next question is from the line of Jigar Jani from BNK Securities. Please go ahead. Yeah. Hi, sir. Congratulations on a great set of numbers again. Just two questions. One, on the rooftop solar scheme, I believe we were planning to finance certain PPSCs involved in the scheme. So what are the plans on that? And the second is a bookkeeping question. Out of the seven assets which are under resolution, what is the quantum of that in the stressed book? Okay. With regard to rooftop solar, Aditi has been made National Program Implementation Agency. Our first priority is to install 1 crore rooftop solar at the NDF batteries. But this segment, we are not targeting to finance, actually, because we are not into retail financing. Banks are financing this rooftop solar for individual households. They are giving collateral-free loan at the rate of 7%. But with regard to government building, government building work has been assigned to the public sector undertakings. They have each been assigned different state government and different departments. Should the state government department or the central government department ask the PPSC to go on rescue mode, then they'll require financing from RDFC. Otherwise, if they are doing on CAPEX mode, they'll not require any financing. So you can throw some more light. So particularly on the RTF for the household, the funding is largely by the public sector banks and some NBFCs also. But then there's one large component of putting this rooftop solar on government buildings also, both central department as well as state department. And these rooftops are actually quite large as compared to household. And that is where if the projects are being put on rescue and maybe in very few cases or even on CAPEX, there is a funding opportunity available. This particular activity for state government and central government building rooftop installation has started now. And this, I think, will see some activity happening in financing this particular segment in times to come in maybe Q2 and Q3. With regard to Andrew, sir, can I ask you about this 100% provisioned assets? We have 7 assets where total outstanding value is towards INR 2,200 crore, and against which we have already made a 100% provision. We have an RDA-compliant technical write-off policy, and we are considering these projects for technical write-off in the months to come. That is already under evaluation. Okay, sir. And any sizing you have for the rooftop solar? I know it's too early, but would this be coming more in FY 2026? Should we expect some opportunity out of it? Maybe, maybe, yes. Maybe, maybe. I mean, for household, it's a very detailed sort of funding, some INR 1 million of funding, which actually banks are taking care. The states are in the process of preparing plans, and they have time to prepare and submit that plan. Once that plan is submitted by them, the quantum of the CapEx requirement would then be known, and the opportunity will then come thereafter. So I think this will happen maybe three to six months from now and over a period of next two to three years. Okay. Understood, sir. Thank you so much for answering my question. Thank you. Ladies and gentlemen, we'll take this as the last question. I've handed the conference over to the management for closing comments. I would like to thank all the participants for asking very pertinent questions, and we were able to throw more light on our business strategy. Going forward, we would like to maintain the growth trajectory, the traction that we got last year. Going forward, we would like to accelerate the pace of our growth, and it may go from 70%-20%, as mentioned earlier. Thank you so much. Thank you to all of you. Thank you. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.