Ladies and gentlemen, good day and welcome to REC Limited Q3 FY25 conference call hosted by Equirus Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded, and I'll hand the conference over to Mr. Shreepal Doshi from Equirus Securities. Thank you, and over to you, sir. Hi, good morning, everyone. Thank you, Neela, for passing on the call. We welcome you all to the earnings conference call of REC Limited to discuss the third quarter performance of the company and the business update. We have with us the senior management of the company, represented by Mr. Vivek Kumar Dewangan, Chairman and Managing Director, Mr. Vijay Kumar Singh, Director of Projects, Mr. Harsh Baweja, Director of Finance, and Mr. M. L. Kumawat, Executive Director of Finance. Without taking much time, I'll hand over the call to CMD, sir, for his opening remarks, after which we can open the forum for question and answer. Over to you, sir. Good morning, everybody. Our Q3 results were declared on the 6th of February. I hope that all of you must have gone through it. I would just like to highlight certain salient points that our disbursement had grown significantly in the first nine months, which stands at INR 145,646 crores. Last year, you may remember that total disbursement was INR 161,000 crores, and as we are talking, our disbursement has reached that level, and still about one and a half months is left. We hope that disbursement in the current financial year is going to increase substantially. Our loan assets under management have grown by 14% in Q3. Although disbursement was highest ever in Q3, that was INR 54,000 crores, but because of some prepayment, the loan book has grown by only 14%. We hope that in Q4, this loan asset will grow between 15%-17%, and we are quite confident that we'll be able to sustain a growth of 15%-17% in the years to come. That's why we are targeting that our asset under management will grow to about INR 10 lakh crore by the end of 2030. Our significant disbursement has happened in respect of renewable energy projects. The disbursement has increased by 79% in the first nine months in respect of renewable energy projects, while non-power infrastructure and logistics, it has seen growth of 30%. The profit after tax has also grown significantly by 15% to INR 11,477 crore. Now, coming to the cost of funds, we have been able to bring down our cost of funds to about 7.15%. The spread has increased by 12 basis points to 2.94%. The net interest margin has also increased by 12 basis points to 3.64%. Return on net worth is about 21.07%. Debt-to-equity ratio is 6.38%, and capital adequacy ratio is 25.33%. Our net NPA has come down to 0.74%, and gross NPA has come down to 1.95%. Here, I would like to inform all of you that there are four operating assets where we are expecting good resolution, and because bidding has already been completed in respect of KSK Mahanadi, where we are likely to recover 154% with respect to the principal amount. Reversal is likely to happen about INR 908 crore; more reversal will happen. In respect of Sinnar Thermal Plant in Nashik, our recovery with respect to principal is about 52.65%. Again, there also, we are going to get reversal of provisioning amounting to about INR 761 crore. Third operating asset is Hiranmaye Project, where recovery with respect to principal is going to be about 82.75%, and reversal of provisioning would be about 440 crores. And Bhadreshwar, our reversal of provisioning is likely to happen to about 42.59 crores. In all these four assets, our reversal of provisioning would be around 2,200 crores. And most of the assets where these are the operating assets, which are likely to be recovered, but NCLT orders may take some time. Orders may come in Q4, may not come in Q4, may go to the next financial year also. But by December 2025, all this reversal will happen. With these few words, now we are open for we will have a small presentation. If you all agree, we'll go through the presentation. Good morning, everyone. We'll take you ahead with the presentation about REC. The presentation has also been uploaded on the stock exchanges. We'll take you through the presentation, which contains the REC journey over the last five decades, from where we have grown from a company registered with NBFC with RBI in 1998 to our Maharatna entity in 2022, and also in 2024, where we have been appointed as a national program implementing agency for PM Surya Ghar: Muft Bijli Yojana. We also did a maiden Yen bond issuance of JPY 61 billion and a USD bond issuance of $500 billion. REC's key strength remains to be that it is a Maharatna company and a strategic player in the Indian power sector and infrastructure and logistics sector, with a diversified asset base and robust access to diversified funding sources. REC occupies a strategic position in the growth and development of the power sector and a major player in the renewable energy segment and creation of India's green energy corridor. REC has a very healthy asset quality with adequate provision coverage ratio. REC has strong fundamentals and profitable business with stable margins leading to strong profitability. On the ratings front, REC commands highest domestic ratings of AAA, which is from all the four major rating agencies in India. Internationally, we are at par with the sovereign rating of India and enjoy Baa3 rating from Moody's, BBB- rating from Fitch, and BBB- rating from Japan Credit Rating Agency. We are a nodal agency for major Government of India's power sector programs such as RDSS, Saubhagya, Deen Dayal Upadhyaya Gram Jyoti Yojana, rooftop solar programs, to name a few. We have an experienced management team with sector expertise. REC is among the coveted few Indian PSUs, which enjoys a Maharatna status, which is the highest rank for top-performing PSUs in India. We are only amongst the 14 PSUs which have been accorded this status. This Maharatna status allows us greater operational and financial autonomy. It also allows us strategic investments by incorporating JVs, subsidiaries, and M&A activities in India and abroad. It also helps us in accelerating growth and supporting government's vision for the power sector. REC has also diversified into loan portfolio with a mandate of up to 33% loans in non-power infrastructure and logistics sectors, where we have been funding to metro, port, waterways, airport, oil refinery, roads and highways, IT infra, fiber optics, steel infra, and also health sectors. We'll take you ahead with the shareholders' outlook as of 31st September 2024. We continue to be held majorly by Power Finance Corporation of India at 52.60%. The FPI and FIIs continue to hold more than 20% in REC since IPO in 2008 and still hold 21.74% in REC. The insurance companies hold 4%. Individual HUF NRIs hold 10.58%. The mutual funds and AIFs hold almost 9%. The corporate banks and FIIs are holding 1.7% of REC equity, and others are holding 0.23%. Some of the largest shareholders in REC include, apart from power finance, are Government of Singapore, L&T Finance Trustee Company, Nippon Life India Asset Trustee, Life Insurance Corporation of India, NPS Trust of Aditya Birla Sun Life Pension, SBI Life Insurance Company, SBI Quant Fund, Vanguard Total International Stock Index Fund, and Tata AIG General Insurance Company. On the dividend front, we have declared the third interim dividend for Q3 FY2025 of INR 4.30 per share, in addition to the first and second interim dividend for Q1 and Q2 of INR 3.50 and INR 4.00 per share, respectively. After this third interim dividend, the total interim dividend that has been declared by REC amounts to INR 11.80 per share on a face value of INR 10. We are also happy to inform you that REC has been awarded the Gold Shield under the financial services sector, other than banking and insurance sector, category of ICAI Award, that Institute of Chartered Accountants of India Award, for excellence in financial reporting for the financial year 2023-2024. This is in addition to the various awards that we have been getting on the corporate governance, risk mitigation, and to name many. Let us come to the operational performance for the quarter and nine months ended. During the nine months FY2025, REC has sanctioned INR 271,814 crores worth of projects, including renewable projects of INR 79,135 crores. The details of the sanctions are available on the slide number 13 of the presentation. During the nine months ended December 2024, REC has disbursed INR 145,647 crores, which is the highest ever quarterly and nine-month disbursement by REC. This signifies an increase of 19% in the nine months of FY2025 over nine months of FY2024. As per the initial guidance by REC, the renewables disbursement has increased by 79% during the nine months FY2025 over nine months of FY2024. The outstanding loan book stands at INR 565,621 crores as of 31st December 2024, which signifies an increase of 14% year on year. The renewables book has also shown a good increase of 58% from last year and stands at INR 52,394 crores as of 31st December 2024. We continue to have pan-India presence across all the states in India, and the state sector outstanding is close to 498,444 crores, and the private sector book is around 67,177 crores as of 31st December 2024. The top 10 major borrowers of REC include Tamil Nadu Generation and Distribution Company Limited at outstanding of 39,670 crores, Maharashtra State Electricity Distribution Company Limited at 27,023 crores, Tamil Nadu Power Generation Company Limited at 22,249 crores, Kaleshwaram Irrigation Project Corporation Limited at 17,911 crores, Uttar Pradesh Power Corporation Limited at 17,732 crores, Telangana State Power Generation Corporation Limited at 17,242 crores, Andhra Pradesh Southern Power Distribution Company Limited at 17,233 crores, Jodhpur Vidyut Vitran Nigam Limited at 15,406 crores, Telangana State Southern Power Distribution Company Limited at 15,042 crores, and Maharashtra State Power Generation Company Limited at 14,813 crores. REC has a well-diversified asset portfolio with top 10 borrowers accounting for nearly 36% of the outstanding loans. None of the top 10 borrowers account for more than 8% of the total loan books, and there have been no NPAs in top 10 accounts ever. We come to the asset quality of REC. The asset quality has improved as of December 2024, and the gross NPA has come down to 1.95%, and the net NPA has come down to 0.74%, primarily going to resolution of three assets, which are Lanco, Amarkantak, Nagai Power, and Lanco, with total outstanding of about INR 2,778 crores. Consequent to resolution of these NPAs, the provision coverage ratio stands at 61.88% as of December 2024. Category-wise, ETS provisioning is also available in the presentation on slide number 20. Just to again confirm, there is no NPA in the state sector. We have a provision of nearly 62% on the NPAs, and in addition to that, we also hold a provision of 0.73% on the standard assets. In addition to these provisions, we also have reserves available in the form of statutory reserve under Section 45(IC) of the RBI Act and reserve for bad and doubtful debts under Section 36(1)(7)(A) of the Income Tax Act, amounting to INR 13,134 crores and INR 1,320 crores, respectively. Our current NPAs are under various stages of resolution. There are about 13 projects under NCLT with outstanding of about INR 9,543 crores, with a provision of 68%, while one project is also being pursued outside NCLT with an outstanding of INR 1,503 crores and provision of 50%. On the borrowing profile of REC, we continue to hold the credit ratings by Moody's, which the Japan Credit Rating Agency has also rated, and domestic rating of AAA is the highest from all the four rating agencies. The perpetual debts of REC are also rated highest, which is AAA by CARE and CRISIL. The outstanding borrowings of REC as of 31st December 2024 have increased to INR 489,595 crores, which is an increase of 13% from year- on- year. We have access to multiple sources of funding mix with a mix of international and domestic sources to meet the business growth. We are also one of the four companies which are allowed to raise low-cost capital gain tax exemption bonds. During the nine months of FY2025, we have raised funds to the quantum of INR 115,020 crores, which have been raised from across all the sectors, domestic as well as international. Just to throw some brief lights on the financial highlights for nine months, we have recorded the highest ever nine-month FY profit of INR 11,477 crores. The total income stands at INR 40,805 crores, which is an increase of 18% year- on- year. The net interest income stands at INR 14,191 crores, an increase of 24% year on year. The net profit for nine months is at INR 11,477 crores, which is an increase of 15% year- on- year. The loan book has also reached INR 5.66 lakh crores, an increase of 14%. Asset quality has improved from 0.82% - 0.74%. The net worth of REC stands at INR 76,502 crores, which is also an increase of 18% year- on- year. The capital adequacy ratio of REC is at comfortable 25.33%, with Tier 1 capital at 22.95%. This is against the requirement of 15% by RBI, so REC is adequately capitalized. On the key ratios of REC, the yield on loan assets for the nine months has increased from 9.98% from last year to 10.09%. The cost has remained stable at 7.16% from 7.16% - 7.15%. Consequently, the interest spread has improved to 2.94%, and the net interest margin has also improved to 3.64%. The return on net worth remains impressive at 21.07%. The interest coverage ratio is fairly adequate at 1.57 x, and the debt-equity ratio at 6.38 x. The profitability statement is also given on slide number 29 of the presentation. In the Q3, we have recorded profit after tax of 4,029 crores, which is an increase of 23% from the last year at 3,269 crores. For the nine months, we have recorded total profit of 11,477 crores, an increase of 15%. This is in line with the last year's profit of 14,019 crores. The position of balance sheet is also given on slide number 30 of the presentation. As already informed, the net worth has increased to INR 76,502 crores, an increase of 18%. From this year, we have also given a slide on the ESG at REC Limited, what REC is doing on the ESG front. The detail has been given in the presentation from slide number 31 onwards. Just to give you a very quick on the ESG front, the REC ESG policy was adopted by the board, was approved by the board in January 2023. The ESG targets have been assigned for quarterly compliance in June 2023. From there, in February 2024, the new ESG-related policies were introduced, and more human rights and well-being trainings were organized. In April 2024, the assessment of GHG emissions of all REC offices has been completed. REC has published its first-ever ESG report referencing GRI format in August 2024, and in October 2024, REC has committed to net zero in scope one and two emissions. The details of the ESG-related activities being done by REC and what we have been targeting for the coming years are also given in the presentation. With this, we are open for the question and answer round, and the management is happy to take the questions from the investors. Thank you, Amy. We will now begin with 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'll wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. The first question is from the line of Shreya Shivani from CLSA India. Please go ahead. Yeah, thank you for the opportunity and congratulations on a good set of numbers. Sir, I have two questions. First is on the, just wanted to understand the prepayment bit slightly better. So the repayment rate, what I was seeing in the distribution sector for our segment has remained elevated for the past couple of quarters. I'm assuming it's because of the RBPF scheme. If you can help us understand whether that scheme is contributing to the elevated repayment rate that we see in the distribution segment. Also, in this quarter, it seems like the repayment rate in the Genco book, which includes the renewable, has also been elevated. So did the prepayment come from the renewable Genco book, or is it just the elevated DISCOM repayments that we are seeing that has slowed down our growth in this quarter? That's my first question. Second, sir, we have an exposure to an Adani plant in Jharkhand, I believe, which provides electricity to the neighboring country. Sir, is there any concern that we have over there? Have we raised our provision on that asset, or any color that you can give to us on that would be useful? Thank you so much. Thank you, Shivani, for asking a very pertinent question. You're right that revolving bill payment facility we have given to the distribution companies. A lot of repayments have happened in respect of revolving bill payment facility. And with respect to generation, some renewable energy projects, some prepayments have happened because you know the nature of renewable energy projects. After they get commissioned in two to three years, and thereafter, the promoter wants to sell off its equity and then monetize it and then go on for new projects. So that is the trend, actually. You will see across all these renewable energy projects, there is a tendency to sell off this project. And with regard to Adani Power Plant in Jharkhand, Government of India has allowed Adani Power Generation Company in Jharkhand. In case there is no offtake from Bangladesh, they can sell in domestic market. However, the repayments are happening in time, and we don't see any concern with regard to repayment from this Adani Power Plant. I'll request Dr. Banes to corroborate on these repayment issues. Actually, you might be aware that our average repayment is around 9,000 crores per month. So it is absolutely on the track. During the quarter itself, we have got the repayment of INR 27,000 crores, which is a regular repayment. And INR 5,600 crores is towards the RBPF, which is again in the regular course of business. This amount is remitted by them and again we disburse them. So it doesn't affect our loan book. The important thing was about the repayment, prepayment, which we have got from the ACME. That is around INR 2,000 crores, which is because of since the company has gone into the public issue IPO. So out of their proceeds, it was mandatory for them to make the repayment to us. So that prepayment has come additionally over the regular repayment being received during every month. Got it. So that's very useful. So last one follow-up question on the disbursal trend. For the first time in your PPT, you have put RDSS disbursals. This is towards that smart metering program. It's a very small number, but should we expect this segment to start scaling up from next quarter onwards? Thank you so much, Shreya. You are absolutely right. What has happened that under RDSS, there are two components. One is loss reduction work, and second is prepaid smart meter. Our CapEx loan we have sanctioned is in respect of loss reduction work. Initially, the distribution companies had utilized the Government of India grant to the extent of 20%. Now the work is picking up, and we do hope that in the next year and the subsequent year, substantial disbursement will happen in respect of RDSS loss reduction work. With regard to prepaid smart meter, this is being done by AMISP service providers, those private players who have won the bids for installation of prepaid smart meter. They are installing in turnkey mode. So they are seeking loans from us, and we have already sanctioned about INR 7,000 crores loan we have sanctioned to this prepaid DISCOM meter operator. That also is likely to pick up in the next two years. We would like to add. I'll request Dr. Prajit to give more color to it. So I think in the RDSS, we have done two types of funding. One is called counterpart funding, which is 40% remaining CapEx amount. 60%, you know that it is coming from Government of India as grant. And 40%, some of the DISCOMS have availed loans. So that funding we have done. We have also done a funding which we call, I mean, interim funding. Suppose a DISCOM is receiving these grants slightly late, but they have to continue with their CapEx program. So we have supported them even for 60% with the condition that whenever they get the grant, they repay that loan. These two types of funding is under RDSS. MD Sir said that we are also supporting AMISP. We have done large projects for Genus Power, some INR 4,500 crores. We have also done IntelliSmart, and there are other proposals also on our desk which are currently under appraisal. So definitely, I mean, this is one area where in fact we were saying this in the past that from this year onward, this particular segment will pick up, and we'll see the disbursement happening going forward as well. Got it. This is very useful. Thank you so much and all the best. Thank you very much. Next question is from the line of Avinash Singh from Emkay Global. Please go ahead. Yeah, hi. Good morning. Thanks for the opportunity. Two questions. The first one is that on conventional generation, the good news there, what I see is that Mahagenco has already floated a tender even for financing of its unit 11 and 12 at Koradi. That is nearly 10,500 crores kind of a loan requirement. And it particularly suits into your kind of a borrower criteria. The question here I have is that, okay, I mean, it's a great thing that finally things are moving in state utility sector in terms. But in that big document, they are kind of what they have said is the interest rate under 9%. Now, and this project involved nearly kind of a moratorium of six years. I mean, COD plus 12 months, and COD will be close to five more years. So now with the conventional thermal sector, a six-year kind of a moratorium and under 9% yield. I mean, how does it pan out for profitability if you were to fund this one? So that is, and if this is the case, I mean, across the most state utilities, if they as and when more and more projects come for financing, then do you see kind of a pressure on your margins emerging? Because I mean, these are conventional projects with long gestation period on moratorium. So that is where I would like to hear your thought. Second one is more kind of on data. If I look at slide 21, and you mentioned including Lanco RattanIndia contracts, there were three assets that got resolved. I guess there is some kind of a mistake here in your NCLT that is still saying 13 projects, whereas the outside NCLT is saying just one. Whereas if I recall correctly, all these three were kind of under NCLT. And also, if I try to use the PCR of 68 and 50 under two categories as given in slide 21, the total PCR is going up. So there is something, I mean, I guess I miss here. So these are my two questions. Thanks. Thank you, Avinash. Let me first handle second question that you asked. Out of these 13 projects in NCLT, seven projects are heading towards liquidation, actually. And the remaining six projects, their bidding has already completed. So that's what I want to clarify that liquidation process does take some time, but we have already made 100% provision in respect of those assets. With regard to your question on conventional generation bidding by Mahagenco, we are evaluating this aspect, actually. We are in discussion with Power Finance. Actually, normally with conventional generation business, we share equally with Power Finance Corporation. And the specific request is that in the big document that they have mentioned, it may not be feasible. That will be our end discussion. I'll request my Director of Projects to answer this question. So sir, we actually, I mean, there's a very large pie. I mean, many projects are lined up under thermal generation category, close to 50,000-55,000 MW of projects that will come under state sector utility. And we are targeting close to 50% of that particular business. So we do understand that some of the business, there may be competition, like in case of Koradi. And what we understand in case of Koradi also, that the bid is not submitted perhaps by a lender, but by a syndicator, who in turn will actually secure loans, or arrange loans from banks. But having said that, I mean, there are big opportunities available for us. In one or two states, we do see this kind of things happening. But then, as you know, than last year we did 8,500 MW of greenfield thermal generation. This year also, we have done 3,700 MW already. And of course, we will be targeting a few more projects under thermal generation category. But the size of the business available in this particular segment is too large, and obviously, other players will definitely chip in. As the Central Electricity Authority that is taken care of by the Ministry of Power, they already made projections for optimal generation mix. And since renewable energy is intermittent in nature, and the base load comes from the thermal power, coal-based thermal power only, the country will require 80 GW to about 94 GW capacity by the year 2032. You know that our market share, REC's market share is about 20%. So we are targeting minimum 20% of this opportunity, which is going to be open for us. Yes. Thank you. So sir, the question was more that do you see these kind of projects getting funded at a 9% or under 9%? Because I mean, these are long gestation period, which you have to provide six-year moratorium. These are not renewable. So the question was more on the rate. I mean, do you see these rates being kind of available? And particularly, if this kind of a rate pressure comes in more and more state utility projects, will that put a pressure kind of on your margins? That was the question. And related to that also here, despite being a brownfield project, this is like the CapEx or the cost envisaged is like 10 crores per megawatt. So I mean, yeah. So is that the thermal power generation cost also kind of increasing kind of creates some kind of a doubt over the viability of the project? Yeah. In fact, greenfield coal-based power plant project cost has now increased about 12-13 crores per MW. But since it is bound to be some already balance of plant facilities are there, they have made projection of 10 crores per MW. So that's correct. But with regard to pressure or interest rate, I think it will get stabilized because the expectation is that of renewable energy projects is like that. I don't think that renewable coal-based power plants will not be able to command the same interest that RE projects are generating. Would like to. So I mean, this is definitely something which we also need to, I mean, closely watch. But then this is one of the transactions. But if you look at the remaining transactions, 90% of other funding, where there are no such pressures. We do expect such things to happen in one or two projects, in one or two states or two or three states. But in other states, this kind of situation does not, as of now, it does not exist. And we believe that this is one of transactions. Okay. On that NPS slide 21, just I wanted clarification because last quarter you had 13 under NCLT and three got resolved. So now the left after from this quarter, it is 10 under NCLT or still 13 are still under? Because your Lanco Amarkantak contract and two other, you mentioned that you have already resolved. 13 and 14. They are actually what has happened that bidding, although the bidding has been completed, like KSK Mahanadi, Sinnar Thermal Power, Hiranmaye, Bhadreshwar, etc., but final order has not yet been issued by NCLT. That's what about six operating assets are there, and seven are under liquidation process. So 13 is correct figure. 13 projects are under NCLT for resolution. Thank you very much. Avinash, I'll request to come back for a follow-up question, please. Thank you. I request to all the participants kindly restrict to two questions per participant and join the queue again for a follow-up question. Next question is from the line of Shweta from Elara Capital. Please go ahead. Thank you, sir, for the opportunity. Congratulations on good quarter. So a couple of questions. If we look at quarter-on-quarter basis, yields have slightly risen, and this has been pretty consistent now for past three quarters in a row. But if I look at the mix, that has remained largely steady. So any particular asset or segment that is contributing to that? And a related question. So now we are 12% private sector asset exposure. So could you just provide some color on what kind of renewable private assets we are looking at and if any other major exposure on the private sector side? That's question number one. Question number two. So just a clarification. So you mentioned in your opening remarks that the write-backs now across these three assets, KSK, Hiranmaye, and Sinnar, is around 2,200 odd crores. But earlier you had mentioned 1,500. So I also recall you also mentioned about recoveries coming in higher. So if you could just clarify the numbers for the sake of convenience. Thank you. Thank you, Shweta. You're right that our exposure to state sector has come down from 89% to 88%, and the exposure to private sector increased from 11% to 12%. There is not substantial increase. But a number of renewable energy projects we have sanctioned for the private sector, where disbursement is going to happen in the current financial year and next financial year. The share of private sector lending is 12%. It's about to increase, actually. It will gradually increase to 30% by the end of 2030. As more and more disbursement in respect of renewable energy projects takes, the share of private sector will increase because most of the renewable energy projects which we have sanctioned is in respect of private sector. With regard to what kind of renewable energy projects we have sanctioning for private sector are solar, wind, hybrid solar-wind projects where PPAs are already in place, the solar module manufacturing units, wind turbine manufacturing units, the storage solution, battery energy storage, pumped storage projects, green hydrogen, green ammonia. We are covering the entire gamut of renewable energy projects when we are sanctioning, and most of them are coming in the private sector. With regard to write-backs, reversal of provision in respect of these three operating assets, KSK Mahanadi, Sinnar Thermal, and Hiranmaye. In the last con call, we had mentioned that our write-backs we were expecting 1,500-2,000 crores. Now the bidding is over, so we have come to the correct figure. So now the total reversal is going to be about 2,200 crores. Of Rs 351 has already been done. The 351 has already been done. Yeah. For KSK Mahanadi, we already INR 351 crores has already been factored in this quarter, Q3 or Q7. Because NCLT had allowed that the amount which was lying in the TRA to the tune of, at that point, INR 6,500 crores was to be distributed among the lenders. That amount has already been distributed among the lenders. So then the yield increases is attributable to? Yield increase. Sorry, I couldn't get your question. Can you repeat it? If you have seen rise in yields, what would you attribute this to? Is it the asset mix or any reset in rates? Actually, this is regarding the composition of the disbursement. So our generation rates are a little bit at a higher side. So the disbursement towards the generation sector has been increased, which has resulted in higher yields during the quarter itself. It's not because of the reset, but. Not because of the reset. It is a routine feature. That is what I'm saying. It is largely because of the disbursement happening in a segment where we are charging a little higher as compared to other things, like for example, generation, thermal generation. Sure. That explains. Thank you, sir. Thank you very much. Next question is from Deepen Saha, individual investor. Please go ahead. Yeah. Good morning, and thank you for the opportunity. I had a couple of questions. Firstly, on the forex loans which we have, the rupee has been depreciating quite a bit. So could you just give us some more insights on what we should expect going ahead as far as borrowing is concerned? And secondly, on the existing forex loans which are outstanding. The second question is, if you could just give us some color on how do we expect the NIMs to move over the next couple of years. Thank you so much. Okay. Thank you, Deepen, for asking very pertinent questions. With regard to your question on NIMs, we hope to maintain the NIMs of more than 3.65% to about 3.7% going forward. We'll be able to hold on to the NIMs. With regard to forex loan, I'll request my Director of Finance to give the detailed reply. But let me assure you that 99% of forex loan is already hedged. So there's not much concern. I'll request the Director of Finance to give more color on this forex loan. Actually, our total loan outstanding is around INR 159,000 crore. Of FCNR is INR 43,000 crore, and external commercial borrowing ECB is INR 115,000 crore. Our 99% loans are very much held. And as you know, since REC has a treasury team that's keeps on reviewing the hedging margins, so on that basis, we are regularly reviewing our portfolio. And in case if any remedy election is taken, it is needed to be taken. That is always taken well in time. So again, since this is a recent phenomenon, the rupee devaluation is a recent phenomenon. So we are working on that, and whatever the best action would be required would be taken immediately. Okay. That's good. Thank you so much, and all the very best to you, sir. Thank you, Deepen. Thank you. Next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Yeah. Thank you, and good morning, everyone. So first things first, I mean, while in your opening remarks, you've already spelled out the four projects. But if you could also give the breakup of this INR 2,200 crores that we spoke about just once again for the benefit of everyone. That is my first question. The second thing is, sir, this nine months of this fiscal year, if you could also give the split of disbursements and sanctions between private and public. The third and the related question to Ari again is, so this time we spoke about prepayments that we got from ACME, and you also explained that they went for a public IPO, and subsequently, it was part of their mandate to repay the REC. If you could just help us all understand, how should we look at prepayments now from the REC, from the RE book? Is it going to be elevated going ahead as well? Yeah. Thank you, Abhijit. With regard to your state asset resolution question, I had already mentioned that these four assets, KSK Mahanadi, we already got INR 351 crore reversal has already happened in Q3 because NCLT had allowed some amount lying in TRA to be distributed among the lenders. And the remaining, because the total recovery of loan portion is going to be INR 2,596 crore, and recovery with respect to principal is going to be 154%. The total reversal provision will happen in KSK Mahanadi to the tune of INR 908 crore. With respect to Sinnar Thermal Plant in Nashik, the recovery with respect to principal is going to be 52.65%, and our reversal of provisioning will be amounting to about INR 761.34 crore. Hiranmaye Energy, our recovery with respect to principal is going to be 82.75%, and reversal of provisioning will happen to the tune of 440 crore. In respect of Bhadreshwar, our reversal of provisioning is going to be about 42.59 crore. Now, with regard to your question on disbursal. Sanction breakup. So sanctions, we are generally considering private sector sanction only in case of renewable and in case of distribution segment for smart metering, which we earlier spoke about. So largely under renewable, the majority of the projects are actually private sector projects, whereas we are also doing some renewable energy projects in the state sector as well. In 79,135 total sanctions that we have done for renewable, which includes largely private, I believe 80% of it is towards private sector. But I think offline, we can provide you this breakup in exact numbers. And with regard to your question on the trend of prepayment in respect of renewable energy projects, that is the very basic nature of renewable energy projects that will keep happening, actually. It happens in respect to all the projects, actually. What is happening is that the project developer, they want to monetize. The risk is only up to the time of commissioning. After commissioning, they want to monetize their equity portion and then move forward for new projects. So I would like to add on this. So I just want to add that this is a very, very common activity. Refinancing is very active in RE space. But you might see that we are also taking over any commissioned assets from other, which are actually financed by other lending institutions or financed through foreign funding. So for example, we have very recently done INR 2,500 crore of lending to ACME for commissioned portfolio, which actually was funded by foreign lenders. I mean, it was funded through bonds. Now it is being taken over by us. So this is an activity which actually keeps happening. Likewise, I mean, there are other projects also where we have taken over assets, commissioned assets in our portfolio through refinancing. So I mean, this is an activity which keeps happening. There are a few assets which are financed by us. They are refinanced by somebody else, but we also do the same thing. On the whole now, we have seen that it has perhaps no impact on the growth of our RE loan portfolio. Got it. So then just one small follow-up on that. So while we kind of keep saying that RE, majority of it is private sector projects, I mean, is the understanding correct that, I mean, despite they being private, what still gives us a lot of confidence of doing private in RE is because all of it or most of it is PPA backed or they have PPAs? Yes. They are all PPA backed. But let me also point out that some large hydro projects are also coming in renewable energy sector. That is coming in the state sector. And PSP project also. Pumped storage project also. Some PSP projects are also coming in the state sector. Yes. Isn't it? That's true. Got it. This is useful. Thank you so much. Thank you. Next question is from the line of Suraj Das from Sundaram Mutual Fund. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Sir, three questions. First question, if I look at the slide 20, the stage one and two PCR for the renewable segment is showing a divergent trend between the private sector and the state sector in the sense that if you look at the PCR stage one and two coverage for the state sector, it is continuously increasing for the renewable. For the last five quarters, it has increased to 50 basis points to 97 basis points in this quarter. While in the private sector, the trend is opposite. It is continuously coming down. It was as high as 1.6. It has now come down to 60 basis points. Sir, what is the divergence? I mean, what is the rationale behind this? That is the first question. And then I have two more questions. Yeah. Actually, we make provision of a minimum of 0.4%. There are some of the other factors which affect the ECL working, which includes the extension of COD, and there are market-driven factors which are also, which is generally done by our third-party consultants. We get our ECL working done by our third-party consultant. On that basis, suppose if the things are on track, then the ECL gets reduced. In case if some riders are not being met, then the ECL gets increased. In the case of state sector projects, the minimum is 0.4%, whereas it is average coming; it is around 7.5%. Private sector, since most of the parameters are on track, so it is on 0.55%. Oh, okay. Understood. I mean, in every case, I mean, the state sector is somewhat seeing some kind of delays due to so many, I mean, operational factors. Hence, probably you are revising the ECL because that's what the case should be. Correct. Correct. Understood, sir. And the second question is, sir, in terms of, sir, on the signing of PPAs in renewable, a few of the news articles and all are mentioning that there has been on ground in last calendar year for calendar year 2024, there has been some kind of four to eight months delay in various states, something like Gujarat, Tamil Nadu, Andhra Pradesh. So what has been your experience? I mean, are you seeing any kind of, let us say, delay in signing the PPAs in renewable sector? And a related question to that is, sir, in this, I think recently, the government has said that there would be no payment for the infirm power, for the generation of infirm power. So are we going to have any kind of impact because of that? Or let us say, what is the exposure towards the pure play merchant power type exposure for us across sectors? So normally, I mean, whenever we do funding, we do funding only after signing of the PPA, and not only PPA, the PSA also by the DISCOMS. So when a project comes for funding to us, these two activities are already done, and we take up funding only after signing of these two very critical documents. There are delays in terms of signing of PPA for the contracts awarded through SECI, NTPC, NHPC with the DISCOMS. But those projects, we do not fund until the PPA is signed. So that is one, and second, yes, there are now limitations on IPPs, particularly RE IPPs for selling of infirm power. Earlier, they were allowed, but recently, there's a notification that the infirm power, if at all it is there, can be supplied only to the PPA off-taker. But those kinds of things, we do not generally include in our financial model. These are incidental things. They may happen. They may not happen. And as such, because of this regulation on our financing and on our financial models also, I mean, there's going to be no impact because such a thing and such a scenario is not taken into consideration while considering financing. Yes, sir. Understood. And so the last question, in terms of DISCOM health, I mean, how you are seeing that in terms of DISCOM health? Because last year, I think fourth quarter, we saw some upgrade, rating upgrade for the DISCOMS. Do you expect something similar this quarter also in the fourth quarter of this financial year that, again, I mean, there will be some rating upgrade on the DISCOMS because they are now doing well, and hence, probably some kind of extra provision right away coming in fourth quarter? That would be my last question. Yes. DISCOM health has been improving because of implementation of RDSS because all the DISCOMS have to adhere to certain reform measures to get this Government of India grant. So again, new ratings is likely to be issued in this month of February itself, and some DISCOMS are likely to be approved. That's true because DISCOMS have been making consistent efforts to bring down their AT&C losses, to bring down government department dues, litigation. In all the fronts, DISCOMS are taking very proactive steps. Tariff orders. That tariff orders are getting issued in time. Filing of the tariff petition by November. For the next financial year, they were supposed to file their tariff petition by 30th of November 2024. 99% DISCOMS have already filed their tariff petition, and the tariff order would be issued by the concerned state electricity regulatory commission by 31st March. Understood, sir. Thank you so much for answering all my questions. Thank you very much. Participants, due to time constraints, I'll request one question per participant and join the queue for a follow-up. Next question is from the line of Nikhil from Bernstein. Please go ahead. Yeah. Thank you for taking my question. My only question is on the renewable side. Renewable, we are facing headwinds, as was just discussed. PPAs are not getting signed. Cell import restrictions have come in. Transmission charges will be applicable July onwards on them. So wanted some color. Are you seeing a challenge to meet the long-term aspiration we have for loan book growth driven by renewables given these recent headwinds? And also, is there heightened competition from banks on the same note to participate in this space? Yes. So delay in signing of PPA by renewable energy implementing agency like NHPC, NTPC, SECI is definitely delaying our funding. So to that extent, yes, the project that we can finance today, we are not able to do that because the PPA is not signed. But as you mentioned in earlier question, that we are taking up funding of projects only after signing of PPA. So non-signing of PPA is not posing any risk because we do not want a project without PPA. But delay, definitely, I mean, it will certainly have some degree of impact on our ability to finance such projects. I mean, otherwise, they would have come for funding a little earlier. And the second question? Second was transmission charges. So transmission charge, I mean, this is something which is already factored in. This is announced way back in 2022, 2023, that the trajectory of transmission charges was taken into consideration while bidding for each of the PPA or, I mean, project. So that is something which is not going to impact because those charges earlier was nil. Now there's a graded manner in which transmission charges will be levied. And that particular element is already factored in by the IPPs in their quoted PPA charges, tariffs. Got it. So overall, our loan book growth aspiration stays intact. You don't see a challenge due to any of these events? I mean, if you see that we are actually, in terms of this question, we are doing quite good. In terms of sanction, also, we will perhaps be at the same level as we did last year. Last year, we did normally well. This year also, we are likely to touch the same level. And we believe that, of course, this PPA signing issue is there, but we will still be able to do some same level of funding. It is largely because of one more fact that we are not dependent on this PPA signed by all these agencies with discount. We are also targeting some large ticket hydro projects and PSP projects. Hydro, you know that PPA signing is not mandatory in the beginning itself. So these are another area at which we are currently concentrating. And this also is becoming part of our RE loan book. Understood. Thank you. Thank you. Next question is from the line of Aagam Shah from Flute Aura Enterprises. Please go ahead. Hi. Thanks for the opportunity. I just have one question. Given that we are moving towards a new income tax era where gradually all the exemptions will be removed, I just wanted your view if the Section 54EC exemption is removed, how would that impact us? Do you think it's a probable event? That's it. Basically, we are discussing with the Ministry of Finance also. This 54EC bond will continue to be there because government wants that to incentivize those who are selling their real estate properties once they get capital gains. They want to save on paying this capital gains tax. This 54EC bond provision will continue going forward also, and this is the cheapest source of fund available to REC. We are paying only 5.25% interest for this capital gains tax saving bond of 54EC bond. This is likely to continue. Okay. That's it. Thank you. Thank you. Next question is Saket Yadav from India Capital. Please go ahead. Hi. Good morning, sir. Thank you for taking my question and congratulations on the great set of numbers. So just one question around the provision this quarter. So we have taken a write-back on P&L of about 89 crores. But you were mentioning earlier that we had a reversal of about 350 crores from the KSK Mahanadi project alone. So just wanted to understand where we had to take additional provisions which brought down that write-back number to 89 crores this quarter. And just one small clarification. So you mentioned earlier that on KSK, we expect 908 crores of reversal, of which 350 have already been taken. So the remaining is about 550-odd. Is that understanding correct? Yeah. You are very correct that out of INR 908 crores, INR 351 crore has already been done. So as regards the provisioning made during the quarter itself, it is because of the change in the PD and LGD and incremental disbursement which have been done. But out of that, we have made a reversal of INR 359 crores of KSK Mahanadi. So that one is there. And some of the reversal on the Stage 3 accounts, that is Amarkantak, Nagai, and Lanco, and KSK Mahanadi is also there. So that has impacted, sir. And there was also change in the Stage 2. There was also change in the Stage 2 from 1% to 0.5%. So that has also given this kind of treatment. So accordingly, the next figure is INR 89 crores, which is coming in the books of accounts for the Quarter 2, Quarter 3. Understood, sir. Thank you. Thank you. Next question is from the line of Pranav Gupta from Aionios Alpha. Please go ahead. Yeah. Hi. Just one question. I wanted to check. You mentioned earlier in the call that the cost of greenfield coal power plants has sort of gone up to almost 13, 14 crores a megawatt. Is that understanding correct, or did I sort of misunderstand what you said? Yeah. We are talking about ultra supercritical power plant because new power plants which are coming, they are going to be ultra supercritical. That includes FGD also. The efficiency factor for ultra supercritical power plant has gone up to 46% as compared to the earlier one which was having efficiency factor of 42%, and the FGD cost has also been included, actually. That's why the cost is coming 12-13 crores, but if we exclude all of that and look at a general Greenfield Power Plant, what would the estimated cost per megawatt be approximately? So it all depends actually on the technology that is being deployed in terms of BTG boiler turbine and generator. Nowadays, all the utilities are deploying the ultra supercritical technology. The CapEx is very high. I mean, comparatively high. And earlier, it used to be around 8 plus FGD, it used to be around 10 crores. So 10 has become 12, but now, all depends on what is the cost of generation. So it has this additional CapEx being done on Ultra Supercritical technology is actually yielding in lower cost of generation. So that is the benefit of putting this technology into the for the projects. Right. Basically, the PRFs get better in the new technology. Coal consumption reduced drastically. And therefore, the cost of generation becomes very attractive as compared to other technology. Sure, sir. Thanks. I have more questions. I'll come back in the queue. Thank you, Pranav. Participants, kindly receive one question per participant. Next question is from the line of Nikhil Agrawal from Sage One Investment Advisors. Please go ahead. Thank you so much for taking my question. So you mentioned that solar module projects are also part of the renewable energy loan book, if I heard that correctly. So however, these projects are generally not backed by PPAs. And typically, the order books that these plants would have would be of one or two years. So how are we monitoring these efforts and protecting ourselves from, say, potential industry headwinds? If there's a future scenario of overcapacity in the industry? And also, if you can highlight what percentage of our book currently would be the module and turbine manufacturing? And what is the typical loan tenure that we have for such loans? I'll take your second question first. So module manufacturing, incidentally, this quarter we have not done. But yes, we have a portfolio of close to 6-7 gigawatts of module manufacturing. In module manufacturing, the payback period is faster. And therefore, the loan tenure is also shorter. So normally, 8-10 years of funding we have done. We have done seven years also in some cases, but 10 years also in some cases. It is ranging within that particular thing. For solar, we have done close to 8,000 MW of solar projects. Whatever funding we do, we need firm tie-up of solar modules from the suppliers, Tier 1 suppliers or wherever this ALMM is applicable. There, the firm tie-up has to be in place almost at the time of funding or before the documentation and certainly before we make the disbursements. I mean, that kind of risk is not there in any of our projects that is financed by us, that there's any issue with regard to volatility in prices of the solar module because everything is firmed up before we enter into the project and start our funding. When you say firm tie-up, if I may add, generally, these files would be for specific projects only, right? So again, the tenure would be much shorter. And while our loan tenure is about seven to 10 years, as you mentioned, so during that period, especially in the second half of it, and practically, we will not have much control on the predictability of the utilization in the plant, etc., right? So loan tenure, which we mentioned, it was about the module manufacturing facility. But in case of IPPs having the solar component, there, the loan tenure is higher. Generally, the PPA tenure is 25 years. So all the REIAs, they are entering into PPA for 25 years, even including the state sector entities who are having this bilateral PPA with the private sector entities are also 25 years. So wherever this 25-year PPA is there, there we are lending close to 16-18 years of loan tenure that we are providing to these developers. Yeah. So I was actually referring to the module projects only and not the IPP projects. Here, if you can just one last point of mine, if you can highlight what percentage of the overall project cost do we typically finance? I mean, what is the debt equity of such projects? So debt equity, I mean, generally, the debt equity is in the range of 70-30, and it goes for the top-rated entity up to even 80-20. But generally, 70-80% of funding is around 75-25 debt equity ratio. Loan tenure, as I mentioned, for PPA, around 25 years. We are giving close to 16-18 years of funding. Project cost varies. Now, if you see that plain vanilla solar projects are not being auctioned, what is coming as FDRE. But we have some benchmarks for each of the technologies. For solar, the current price is close to 3.5-4 crores per megawatt. For wind, it is close to 8-9 crores per megawatt. Likewise, for hybrid projects where we have solar also and wind also, for FDRE projects where we have, in addition to solar wind battery also, we have benchmark prices with which we compare the project cost and then do the funding. Sure. Thank you so much. I have more questions. I'll come back in the queue. Thank you. Next question is from the line of Arjun Bagga from Baroda BNP Paribas. Please go ahead. Yeah. Hi, sir. Good morning. And thanks a lot for taking my question. Just one data-keeping question. So what would be the repayments for the LPS scheme, sir, over the last nine months? LPS, sorry. LPS, no. LPS, we have given funding ranging from 7 years to 13-14 years. So that was dependent on the total outstanding charges payable to the gencos. So where the outstanding is lesser, the lesser tenure is given. And where the outstanding is more, the higher tenure is also given. And the moratorium is also ranging from one year to four years. I think repayment has not started in a much, I mean, bigger way. But I think it will start in years to come. But in some of the cases, this four year is also not completed. So even disbursements are still happening, and they are still in the moratorium period. Close to INR 2,000 crores of LPS will still be disbursed each quarter by us, on which there will be moratorium continuing for up to four years from the date of first disbursements. But I think LPS, no major repayment is happening as of now. It will start maybe from next year onward, where the projects will complete one or two years of moratorium. Got it, sir. So any kind of quantum that you would have any broad numbers for the repayments for the next year? Only for LPS? Yes, sir. Only for LPS. We will have to work out that particular number depending on what, I mean, the overall disbursement that we have done. But I think you can take it that it's around 10 to 13 years in making all the repayments. So that is coming in the 10- to 13-year in the equal spread on monthly basis or the quarterly basis. Sure. Sure. Sure. Thank you, sir. That's it from my side. Thank you so much. Thank you very much. Ladies and gentlemen, we'll take that as a last question. I'll now hand the conference to Mr. Shreepal Doshi for closing comments. Thank you, Neerav. And thanks to all participants for being part of the call. Special thanks to the management of the company for giving us the opportunity to host the call. Thank you, sir. And good luck for the next quarter, sir. Thank you so much. Thank you, sir. All right. Thank you. Thank you, Shreepal. Thank you very much. Thank you, sir. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.