Ladies and gentlemen, good day and welcome to conference call to discuss SJVN Limited Q2 FY25 earnings, 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited. Thank you, and over to you, sir. Yeah, good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q2 FY25 conference call of SJVN. I take this opportunity to welcome the management of SJVN, represented by Mr. Akhileshwar. Singh Sir, Director of Finance, and Mr. Soumendra Das, Company Secretary. We will begin the call with a brief overview by the management, followed by a Q&A session. I will now hand over the call to Mr. Akhileshwar. Singh Sir for opening remarks. Over to you, sir. Yeah, a very good afternoon to all of you. I am Akhileshwar Singh, Director of Finance at SJVN. I'm extremely happy to share some of the major developments in Q2 for the financial year 2024-25. One of the major developments in this quarter is that SJVN has been conferred with the prestigious Navratna status by the Department of Public Enterprises, Government of India. The prestigious recognition making the company the 25th Navratna of India marks a momentous milestone in the SJVN 36-year journey. Further, we have recently commissioned a 90-megawatt Omkareshwar solar project on the 8th of August 2024 in the state of Madhya Pradesh, with the capacity to generate 196 million units of energy per annum. The project is situated in Omkareshwar Floating Solar Park. Agreement for sale of power is already signed with Rewa Ultra Mega Solar Limited and MP Power Management Company Limited. Thus, in terms of the latest addition in our operating asset, 90 megawatts more power has been added, which will add approximately INR 64 crore to our revenue per year. With the commissioning of this project, the total installed capacity of SJVN stands at 2,466.50 MW. Another development is that the Cabinet Committee of Economic Affairs, chaired by the Honorable Prime Minister of India, has approved the investment of INR 5,792.36 crore for a 669-MW Lower Arun hydroelectric project in Nepal. The levelized tariff of the project will be 4.99 per unit on 2/8/2024. The project will be implemented through SJVN Lower Arun Power Development Company Private Limited, a wholly-owned subsidiary of SJVN, incorporated in Nepal. We are excited to inform that in the month of July, the Government of Mizoram has allotted Darzo Lui 2,400-MW pumped storage project to SJVN. That will be the first pumped storage project that will be added in the portfolio of SJVN. The Darzo Lui pumped storage project, with the installed capacity of 2,400 megawatts, is to be developed across Darzo Lui, a tributary of the Tuipui River. MOU was signed with the Government of Maharashtra on 26/9/2024 to develop a 100-megawatt pumped storage project and 505-megawatt floating solar project. Investment amounting to INR 48,000 crore. On the part of the progress of the project, another milestone achieved is the completion of the hydro test of the first unit spiral casing in Arun 3 HEP. As far as our solar project is concerned, the supply of solar PV modules from Bikaner Solar Plant, 1,000 megawatts, commenced in the month of July, and 100% supply of modules of 100 megawatts from the Punjab solar project has been received at site. Also, we are happy to highlight our power generation achievement in the second quarter. Our Nathpa Jhakri Power Project has achieved the highest-ever quarterly generation of 3,450.98 million units in the second quarter, surpassing the previous highest record of 3,400.01.83 million units in Q2 in the financial year 2021-22. Rampur Hydro Power Station has achieved the highest-ever quarterly generation of 955.616 million units. Further, all the three hydro power plants, that is, Nathpa Jhakri, RHPS, and Naitwar Mori, have achieved their highest generation in a single day ever since their commissioning. I am also happy to share some recent developments in the current quarter as well. The boiler light-up of Unit 1 of Buxar Thermal Project was successfully achieved on 2nd October 2024. The boiler light-up of Unit 2 marks a significant milestone, as it is the most important step that paves the way for unit synchronization and thereafter commercial operation of the unit. The project will generate 9,828 million units of energy, and 85% of this power will be utilized in the state of Bihar alone. MOU was signed with the HP PWD for the widening of the project road of Sunni Dam HEP 382 megawatts on 21 October 2024. Work includes the widening of the stretch from Dhalli to Khaira, including the construction of a bridge for an estimated cost of INR 70 crore. So, giving a brief of our project, as of today, 12 projects of 2,467 megawatts and 2 transmission lines are under operation. Four hydro projects of 1,558 megawatts, one thermal project of 1,320 megawatts, and 11 solar projects of 1,958 megawatts are under construction. In the recent past, the Government of India has launched the PM Surya Ghar: Muft Bijli Yojana, which aims to provide free electricity to 1 crore households in India. We are extremely happy to share that, under this scheme, SJVN has been allotted to three states: Himachal Pradesh, Punjab, and Arunachal Pradesh. SJVN has also been assigned the responsibility of the installation of a rooftop solar system on the Government building, and 18 ministries have been allocated to us in this regard. As far as progress is concerned, the process of empanelment of vendors is underway. You must also be aware that SJVN has been listed as one of the renewable energy implementing agencies by the Ministry of New and Renewable Energy to meet the 500-gigawatt target by 2030. In the financial year 24-25, for September and ending Q2, we are ahead of target and achieved more than 100% target, as SJVN has floated a tender of 7.5 gigawatts. Overall, SJVN has floated a tender of 18.6 gigawatts and awarded a capacity of 8.1 gigawatts till date. I am happy to share that SJVN conferred with the Pollution Control, Waste Management, and Recycling Excellence Award during the PCWR Summit and Awards 24, organized by the Greentech Foundation at Guwahati, Assam on 27 July 2024. I once again reiterate that SJVN is moving towards achieving our vision of installing 25,000 megawatts portfolio in operation by 2030 and 50,000 megawatts by 2040. Thanks. Now, Rupesh, over to you. Okay. Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Marsal from an individual investor. Please go ahead. Hello. My first submission is that, like in the last conference also, we requested that while giving this notification of earnings intimation, Mr. Soumendra Das can also attach the link of the Diamond Pass link also, because it's very difficult to navigate through your website to find the link. So I'm sure that this is a reminder, and the next time, Mr. Soumendra Das will make sure that he will attach this Diamond Pass link, this page also, while informing about the intimation of the earnings conference, like being done by all other listed companies. Okay. Noted. Number two, sir, if you didn't find the presentation. Okay. So the presentation is uploaded on your SJVN website or on the BSE and NSE website? No, no. We have not uploaded the presentation. Okay. So this is also because we have made a very huge investment in the SJVN now, and SJVN itself is making a huge investment in gigawatts in terms of many power projects. So it is a humble request that please make sure that in the next time, before the analyst meeting conference call, this presentation is uploaded so that it will be much easier for you people also to answer questions, and the lesser questions will be asked because the majority of the answers will be available within the PPT itself. Okay. Okay. And so my first question. Sir, Soumendra Das has some questions to you. The PPT, which one, sir? Hello? Sir, the headers have been published on the website, sir. Hello? The WhatsApp of PPT, sir? You want? I'm not able to hear you, sir. Okay, okay. Sir, what sort of PPT, sir, you need. Accordingly, we'll have to prepare and. No, no. PPT presentation. All listed companies, when they are conducting this analyst conference, they always give the PPT presentation. So you can see on the website of any listed company, you will find the presentation there. Okay. So, that will. Thank you so much. Thank you so much, because this is a very healthy development. This will be transparent. A lot of answers will be available there itself. Okay. So next time. Yes, sir. Definitely, we will do this thing. Thank you, sir. So in the PPT, you can delve into detail. For example, you have an under construction project. You can go one by one and look at this project is going to commence and so on. So this is going to stay. So you can explain more in detail because now the company is having hundreds of projects. So it's very much required to give the PPT, sir. Yes, sir. Yes, sir. Yes, sir. Okay. Just Just my first question is that you have many projects under construction, like hydro four projects, renewable ten projects, and thermal one project. So can you please give the timeline that when these projects are going to be commissioned? Yes, yes. Mr. Marsal, does that answer your question? No, no, no. I just asked the first question. Okay, sir. So I just want to say something. Hello? Yes, sir. Yes, sir. For 24-25. Yeah. Buxar Thermal Project, 660 megawatts, we expected to be commissioned by January 25. Okay. Bagodara, 35 megawatts will be commissioned by December 24. This is, again, thermal or the hydro? No, no. We are having only one thermal project. Okay. Fine. No. Because in thermal, the capacity given is 1320. So maybe phase one will be completed. 24-25. I am talking about. Okay, sir. Fine. Okay. Next, sir? I am giving you the detail of 1,888 megawatts, which is expected to be commissioned by 2024-25. Very good, sir. In that, Buxar is 666 megawatts, the only thermal project we are expecting by January 1st, 2025. Then January 2025. Then 2025. Then solar, Bagodara, 35 megawatts by December 2024, and 35 megawatts, another 35 megawatts by March 2025. Bikaner, 500 megawatts by March 2025. Bikaner solar project under TPSU. Omkareshwar, we have already commissioned. Then PSPCL Punjab, 100 megawatts, we are expected to commission by December 2024. BBMB, 18 megawatts, we are expected to commission by March 2025. GUVNL, 100 megawatts by March 2025. GUVNL, 260 megawatts by March 2025. And Jamui solar project, 75 megawatts by January 2025. Sir, just a humble input. We shared it. No, no. no. Thank you, sir. But I'm saying that many projects are being targeted in March 2025. So I'm sure that this will be commissioned within March, and it will not be further postponed to the next financial year, right? Maybe some slight change will be maybe there because of the many problems during the execution stage. There might be some shortfall or some slippage will be there. Okay. No problem. Connected to this question, sir, now we have many projects, especially in the solar. So the EPC construction is being done by our own in-house EPC, or are you outsourcing it to the third party for the project? We are not doing any EPC. Basically, our work is only for supervision and control, monitoring and supervision. No, we are outsourcing. In fact, we are avoiding the contract in different forms. Somewhere, it is land with everything, like module or all the Balance of Plant. Somewhere, we are packaging land and module also, and we are avoiding Balance of Plant. But all EPC work are being awarded to the contractors. But sir, here is a major input I'm giving you, sir, here, because I also come from the construction background. Because we have now got 21 gigawatts under allotment and 5 megawatts almost under pre-construction, and 2 gigawatts is already gone. So 26 gigawatts we have. In 26 gigawatts, hopefully, I think you will be spending how much money, for example, maybe about you will be spending more than INR 10,000 or even much beyond that. So what I'm saying, I think there is some scope for cost efficiency, either in terms of procurement or in terms of EPC also, because so many projects you are going to have. So maybe if you set up your own EPC team also, so maybe one project they can do on a test basis, and thereafter, it's order is very easy because I've also done solar projects in my career. So otherwise, if you give this order to this company, any company, for example, who is doing solar, so it means they are making money on our behalf, like at our cost. So what I'm saying, because now your scale is too big, and in the future, it will be even bigger. So it's high time that we start setting up, we make the backward integration. Otherwise, this is like a good amount of cost is being debited to the project, which is being paid to the contractor. So we can have efficiency once we set up one small project, then it's cleaning thing order. The word is given order, but it's basically cleaning. So it's not a rocket science. So what I'm saying, instead of going or instead of following only the method of just being a supervisor, I think our cost of construction will be definitely at a high level, and our ROE and ROC will also get reduced. So it is very much required that the company creates an EPC division, wherein one project can be set up by ourselves, and thereafter, gradually, it can increase the number of projects. Number one, definitely, O&M cost, which is going to pay for the next 25 years, can be substantially reduced by having our own O&M team. Two, number three, now a lot of companies are in reliance. A lot of companies are coming in a mega way in terms of production of all the solar modules. So there is a lot of scope lies in terms of bargain in terms of purchase. So I'm sure that you are adopting all kinds of what I'm saying. This is a strategy. Sir, in the interim, please, I request you to get back to the question queue for the question. You didn't answer yet. Hello, Mr. Moderator. You are not following what I'm asking. So what I gave only to this input only, I gave only three reasons. This is my question. Let me reply to you. Partly, I agree with you, and we are considering all these options, but sometimes, why I am telling that, partly, I agree with you. See, we are public sector undertaking, or our manpower cost is always higher in comparison to the cost of the manpower taken through contractor on a higher basis because we have a lot of remuneration facilities, which we cannot if we are giving it to all the employees or maintenance staff, it will be more costly. In that case, we have planned to go to float another company with the private sector, etc., a joint venture, so that we can have separate manpower for that company. It is in the under-proposal stage. Having a government company, we have to take a lot of approval. What you have referred, like Reliance or Adani, their management can take any decision in favor of the company, even violating the procedure, etc. But here, we are having a lot of checks and balances, controls. There is CAG. There is CVC. There is CBI. So we cannot take decision like them to go start work or start a new venture. We have to take also approval from DIPAM and NITI Aayog for floating a company or having a joint venture with private sector. But we are examining all these aspects, and we are also trying to do it, and we will be adopting whatever possible ways are there to maximize our profit. All right. Mr. Marsal seems to have disconnected at this moment. I will take the next question, which comes from the line of Vishal Periwal from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for the opportunity. So I have a first question. In terms of addition target for FY25, FY26, FY27, can you just highlight how the addition will look like? 2024-25, we are planning to have 1,800 megawatts almost in 2024-25. Plus 2025-26, it will be 6,357 megawatts. And 2026-27, another 3,000 megawatts will be added. Plus 2027-28, 1,700 megawatts. Okay. And sir, in this year, what is the addition estimate done in first terms? In this year, we are planning to have, in fact, I have already applied Buxar 666 megawatt one unit, Bagodara 70 megawatt, and Bikaner 500 megawatt. Omkareshwar, already we have added PSPCL and Punjab 100 megawatts. Plus BBMB 1,800 megawatt and almost 400 megawatt in 360 megawatt in Gujarat and 75 megawatt in Bihar. Sir, in the first half, what is the addition that you have done in the first half? First half addition, we have added Omkareshwar and Raghanesda. Omkareshwar, 90 megawatts. 90 megawatts in the first half. Yeah. Okay. So I think on capacity addition, earlier in the quarter one, we have guided we will do something like 2.6 or gigawatt in this year. So it looks like a couple of projects, they are moving in the renewable. Yeah, yeah. We are expecting 1.8 gigawatt this year. Okay. Got it, sir. And maybe one last thing. So addition has not been much. So what explains the rise or increase in the interest cost on a quarter-quarter basis this quarter? Or maybe why also if you can see there is an increase? In fact, the interest cost of the Naitwar Mori, that has come under operation. Okay. So that is the only element? Or any securitization-related expense that is getting booked in TNL? I mean, anything on that sort that is coming up? No, I don't think it is much. Securitization. Expense. He's talking about the expense. There is not much expense on the securitization. Okay. Only interest cost is there. Okay. So if one has to understand on a quarterly basis, like in this quarter, we are dead throttling the interest cost. So can this be a similar number in the quarters to come? Yes, yes. It will be similar number. Okay, okay, and this network module, this was commissioned from? In fact, November 23, it was commissioned. Okay. Sure. Sure, sir, and maybe I'll take a couple of other questions off the interview. That's all from my side. Thank you. Thank you. The next question is from the line of Mohit Sodhani from Monarch Networth Capital Limited. Please go ahead. Hello, sir. Thank you for the opportunity. Just a couple of questions. One, in the report for this quarter that is published, there's a mention of the Devsari hydroelectric project wherein we have spent INR 250 crores and it has been put on hold. Can you please elaborate on what's the status of this and how can there be a recovery of this amount? The second question is, if you can just give me a status on the Arun 3, is there a delay or when can we expect the project to get commissioned? In fact, the SJVN project, there is a hold by the Environment Committee and by the Supreme Court, but the Supreme Court has stopped construction on the project under the Bangladeshi, but the SJVN project is not listed in that list, but somehow, Government of India has not permitted us to go for the construction, but now, we have filed a petition with the help of Government of India with the Supreme Court to allow us to start construction, and we are hopeful that very soon, we are getting the nod of the Supreme Court to start the construction. Understood. Arun 3, we are expecting to commission by September 25. September 25. Yeah. Understood. Sir, just one last question. There's a small, very small amount of non-controlling interest in our reserves this time. Can you just give some insight on how this non-controlling interest is coming from? We have formed a joint venture with the Assam government, APDCL, Assam Power Distribution Company. And 49% share, we are having 51% equity in that company. And Assam APDCL is having 10%. So that 49% share of them is non-controlling interest. Understood. Sir, any CapEx guidance for the next three years on annual rise? CapEx guidance, in fact, due to delay in Bhakra project and Arun 3 and Luhri, some incident was there. Bikaner also, now there is a delay in module supply. This year, CapEx against the INR 12,000 crore, we are revising it to INR 9,000 crore for the financial of 2024-25. Next year, we are having a CapEx of INR 12,000 crore. Today itself, we have got the budget approved. Similar CapEx, INR 12,000-13,000 crore is expected during 2026-27. Understood, sir. Sir, in the last earnings call, you mentioned some IPO of your green energy arm. Can you update on that? Yeah. We have already got the proposal approved by the board today, and we are approaching the ministry and the firm for taking approval, and we are also going to appoint bankers and underwriters. We are in the process, and we are expecting to complete the process by March 25. Understood, sir. Any finalization of the amount that we are going to raise? 1,000 crore. Understood, sir. Got it. Thank you, sir. That's all from my side. Okay. Thank you. The next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead. Yes, sir. Thank you for the opportunity. Sir, please get closer to your microphone. Am I audible now? Yes, sir. Yes, yes. Okay. So just to understand on Bhakra, remember we had certain issues on the land procurement part. Have those issues been resolved? No, still it is going on. But for the commissioning of the project, we have gone for the PM Gati Shakti arrangement for rail, and we are having some separate line at the Chausa railway station. And from there, we'll be transporting coal to the plant. Almost 5 km distance will be there, where by road we'll be transporting. And this way, this will be initially operated. And with the help of the local court in Bihar, we are trying to settle the land issue. And hopefully, it is expected that it will be given some higher compensation. And the farmers are interested. It will be settled within six, seven months. And then construction of the main railway line will start. Okay. And sir, on the water part as well, there were some issues. Water part, we have made some arrangement with the help of the Water Resources Department of the Government of Bihar. Alternate arrangement has been made. There was some nala coming in the project area through Ganga. We have made the alternative arrangement, and it is on the government land. We have made all the arrangement for that. Only the railroad part will be crucial. So for the first 660 megawatt, the transportation from the 5-kilometer rail should be sufficient to operate the plant at optimal level? Would coal availability be an issue through the current route itself? No, I don't think we have planned everything, and it will not be an issue. But will that be a bottleneck for the second unit then? No. Okay. So when do we plan to commission the second one? Second, by June 25. By June. Okay. The second question was, sir, you mentioned that Naitwar Mori has commissioned. And I believe this is on a merchant basis. There's no PPA or PSA. Not till now, it is on a merchant basis. Could you just help me understand what was the overall revenue and the realization and the EBITDA for Monarch Networth Capital for the first half? 56 crores revenue for the first half. For the second quarter. Okay. Yeah. And it's also the revenue for the first half. INR 76 crores. For the first half. Yeah. Okay. So how much units were generated in this quarter and for first half, Net Worth Muri? I think we have generated 197 million units. In fact, our design energy, we have declared about 265, but we are expecting to achieve more than 300 million. Okay. 197 for the first half, right? Yeah, first half. Okay. But now, generation will be lesser because water is relatively low. But still, it is going on. Water Water is showing a good sign. Okay. So this operates like a merchant for us. Yeah. Just clarification, sir, Arun 3, has the PPA been signed? No, it has not been signed. We are again planning to float a tender for Arun 3. Okay. Got that. Sir, just one last question. On the green energy part, if you could just help me with what is the current renewable portfolio that we have and how much renewable, both solar and wind, do we have under construction as of date? In fact, we have 494 megawatts under operation, and under construction, we have 1,800 megawatts. Okay. Got it. No, those are my questions. 1,958 megawatts under construction. 1,958. Okay. These are all. Eight gigawatt project we have signed with PPA. Okay. Over and above this 1,958? No, no. It will need to include. Okay, so another six gigawatt we have. Another six gigawatt. Got it. Okay. Those are my questions. Thank you. Thank you. The next question is from the line of Ragini Pandey from Elara Capital. Please go ahead. Yeah. Am I audible? Yes, yes. So, sir, projects for which the power purchase agreement has been signed, is there any issue in signing the power supply agreement for those projects? Are you facing any difficulties? We were talking about our own project or project under the Renewable Energy Implementing Agency? Under REIA. Yeah. REIA, yes. There is some issue. There is some delay. In fact, we have already issued the LOI for almost 8 gigawatts. But we have signed PPA for about 4 gigawatts. And balance PPA in the pipeline. Also, sir, I mean, is there any risk for cancellation or for PPA cancellation that stands? Day by day, the prices are getting reduced. There may be one or two cases of hybrid tender where the credit that's discovered is more. In case we are not getting PPA signed with the state, then it will be PSA signed with the state. Then maybe we may have to think of terminating the PPA. Oh, okay. And with respect to. Right now, it is not. I'm not expecting because the rate is in the range of 350. Today, but in the case of our hybrid tender today, we have discovered a lower price of 319. If I'll be approaching any of the developers, they will pick up first 319 price in place of 350. Okay. And with respect to renewable projects, is there any execution challenges that you are facing? In fact, some of our projects are getting delayed. One is CPSU, Bikaner, and day-to-day module supply. In fact, module availability is not the issue in the country. But the module with DCR, Domestic Content Requirement, is the challenge which we have a wider contact with Tata. And they have set up their plant, but the plant is yet to be stabilized. And after stabilizing, in fact, October 24 was the last date for commissioning of the project. But we are expecting that by March, we'll be commissioning 500 megawatts. Another 5 megawatts may go to June 25. Similarly, the few projects we have got in the solar parks in Gujarat, Rajasthan, etc., where in that case, we are not getting any challenges. But the project where the land is to be arranged by us, we are facing a problem in land acquisition. The projects are getting delayed. They may slip a few months. We have faced a problem, and it is expected that the project may be delayed by a few months. Okay and I don't know whether I've missed this, but what was the commissioning timeline for Bhakra? I mean, was there a delay in Bhakra as well? Buxar, we have already intimated. January 25, we are expecting to commission first unit of 660 megawatts, and another second unit by June 25. January 1st unit and June 25 second unit. And so in the previous call, I remember the first unit you had said would be commissioned in the last quarter. I mean, why? October, December, we have said. Is there a reason for delay? In fact, this rail infrastructure is getting delayed, and there are some other issues also, but almost mainly delayed due to the rail infrastructure. Okay, and what was the incentive income for Q2? Q2? Mm-hmm. Please repeat your question. What was the incentive income? Incentive income. Okay. INR 80 crores in incentive income in quarter two against the INR 59.44 crore in the last quarter of Q3, quarter two. Okay. And sir, can you tell me the absolute number for Regulated Equity currently and guidance for 25-26? Regulated equity INR 7,339 crore for our operational project, Nathpa Jhakri-Rampur Solar Link. Okay. Yeah. Thank you. Okay. Does that answer all your questions, Ragini ma'am? Yeah, yeah. Thank you. Thank you. Due to time constraints, this was the last question for today's conference call. I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited for closing comments. Over to you, sir. We thank SJVN management for giving us an opportunity to host this call. And we also thank all the investors and analysts for joining this call. Okay. Thank you.