Ladies and gentlemen, good day and welcome to Torrent Power Limited Q1 FY25 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be no 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. Saurabh Mashruwala, CFO, Torrent Power. Thank you, and over to you, sir. Thank you so much. Good evening to all of you, and thank you for joining Torrent Power's earnings call for Q1 FY25. First, I will take you through the performance of the quarter, after which phone lines will be open for the Q&A session. We'll explore the performance of the company at PBT level first, and then we'll take you through the tax expenses separately. Reported PBT for the quarter stood at INR 1,315 crores as compared to INR 711 crores in the corresponding quarter last year, an increase of INR 603 crores as a growth of 85% on a reported basis. PBT for the current quarter increased non-recurring credit of INR 102 crores for carrying costs approved by the regulators. Adjusted for the above non-recurring item, the adjusted PBT for the quarter stood at INR 1,213 crores as compared to INR 711 crores in comparable quarter of last year, which is higher by INR 502 crores, with a growth of about 71%. Business sales tracked as a contributor to the performance are as follows. First, gain from sale of merchant power and LNG of INR 517 crores. During the quarter, under consideration, merchant capacity were operated for sale in the merchant market for 77 MW NVVN tenders, Section 11, as well as sale of power in the merchant power auction as well. Currently, demand and supply situation in the electricity market is favorable for a generator like us who has an untapped capacity and due to the no major investment being made on thermal capacity in the recent past. With moderation in LNG price globally, it provided a good opportunity for us to run our untapped capacity and gas-based capacity of 1,500 MW. Overall, PLF for thermal generation improved from 40%- 60% due to better long-term as well as merchant sales. Contribution gain from the thermal segment was partially offset by two reasons. First, reduction in contribution for renewable energy segment by INR 4 crore. Second, reduction in contribution from the distribution business, mainly on account of two reasons: marginally higher T&D losses across all areas, etc. Offset by better demand across both segments, which increased by 7% in distribution area and 6% in central distribution area. This completes the explanation on financial performance during the quarter. Moving on, we'll now give the brief update on the projects under pipeline. 3 GW capacity of renewable power projects are in pipeline, which includes the following projects. First, 87.7 MW out of total 420 MW solar project having PPA with our own discom in commission during the quarter. The rest capacity is expected to be progressively commissioned by end of Q2 FY25. As informed earlier, the project is expected to have improved return profile considering reduction in solar modules in the insurance market. Project cost is expected to be around INR 1,800 crores. Second, 300 MW SECI 12 project, wind project, PPA for which was executed in the end of May 2023. A 20 EPC contract for the development of the project has been awarded to Suzlon. In view of the procedural delay in adoption of tariff by the ERC, the SCOD of the project has been extended to January 26. The project cost is expected to be about INR 2,500 crores. Third, 200 MW merchant hybrid project comprising 125 MW wind as well as 75 MW solar is being developed under the RE Power Wind Farm. The project implementation is on track, and the plant is expected to be commissioned progressively by December 25. As the power from the project will be sold directly in the merchant market, it will start generating revenues right from the first part of commissioning, as the evacuation infrastructure is in place. The project cost is expected to be INR 1,400 crores. Fourth, 825 MW hybrid project having PPA capacity of 450 MW with our own distribution comprising 486 MW wind and 339 MW of solar project was awarded through bidding process at a fixed tariff of INR 65 TSA for 25 years. Allotment for the project has been awarded, and PPA for the project is likely to be executed by end of Q2 of FY 2025. SCOD of the project is 24 months from the PPA date and likely to be implemented with a project cost of INR 5,500 crores. Fifth, 368 MW hybrid project comprising 225 MW of wind and 144 MW of solar project was awarded through a bidding process conducted by the Indian Railways at a fixed tariff of INR 425 per unit for 25 years. Allowance for the project has been awarded, and PPA for the project is likely to be executed in the current quarter. SCOD of the project is 24 months from the PPA date and likely to be implemented with a project cost of INR 2,600 crores. Sixth, 425 MW solar project having PPA capacity of 306 MW was awarded through bidding process conducted by the MSEDCL at a fixed tariff of INR 310 per 25 years. Allowance for the project has been awarded, and PPA for the project has been executed. SCOD of the project is September 25 and is likely to be implemented with a project cost of INR1,550 crores. Seventh, 100 megawatt wind power project awarded through competitive bidding process conducted by the SECI at a fixed tariff of INR 360 per for 25 years. PPA for the project has been executed. SCOD of the project is June 26 and is likely to be implemented with a project cost of INR 925 crores. Eighth, under C&I portfolio, company has 528 megawatt project under development comprising 426 MW solar and 122 MW of wind project. Out of which, 35 MW has been commissioned till the end of the current quarter, taking total C&I capacity of 563 MW. The rest capacity is likely to be commissioned progressively within the next two years. Project cost is expected to be INR 2,700 crores. Apart from renewable energy projects, the company is working on the development of two transmission projects as well, which includes first, Khavda Transmission Project under Torrent Power Limited. The agreement between Torrent Power as well as PGCIL, which has been awarded to the company on a nomination basis under Regulated Tariff Mechanism, post-set return on equity of 15%+ incentive. The project cost is expected to be about INR 800 crore. Second, Solapur Transmission Project under new SPV, which was won under competitive bidding basis, conducted in the Q1 of FY 2025 at annual fixed cost of INR 50 crore per annum for 35 years. The project cost is expected to be INR 470 crore. The above-stated investment in renewable transmission project, the company has investment planned close to about INR 20,000 crore for the next three to four years. Moving on to the new ventures, the company's pilot project on green hydrogen blending with CNG is in UP. One of the largest pilots for blending projects in India is expected to be commissioned by Q2 of FY25. Further, the company has got allocation of 18 KTPAs of green hydrogen production under SECI PLI scheme with an average PLI of 28.89 per kilo. Technical efficiency has been done, and the detailed business plan is under preparation. With respect to pumped storage hydro project, having identified project site with a potential of 8.4 GW of pumped storage hydro capacity in the state of Maharashtra and Uttar Pradesh, entailing total investment of INR 40,000 crores. Three feasibility studies completed, and MoEFCC terms of reference have been granted for the entire capacity of 8.4 GW. Agency appointed for EIA study and environmental clearance for all sites. Similar offices are being explored in other states like Gujarat, MP, and Rajasthan. We have initiated the process for obtaining ESZ approval. This could be offered either as a storage solution or providing high-cost CUF or RTC renewable power solution. That's all for the quarter. Now, I request coordinator to open the Q&A session. We wish everybody to stay safe and healthy. Thank you, and we go on to the operators. 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 touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi, thank you. It's a very strong performance. Just have a couple of questions. On the merchant power sale, I'm not sure if I missed it. Is it possible to share the split between NVVN and Section 11? What was the volume sale? And also separately on the profitability for Section 11, last time we discussed that there is a benchmark, and then there's a spread over that benchmark. If you can maybe share some metrics around profitability under Section 11 that you had in this quarter. So, breakup, we were not able to provide, but we can able to provide the MUs basically. MUs we have sold is about 1,700 MUs we have sold in the merchant market. Generally, any kind? It is including the NVVN sale, Section 11, as well as the sale on the exchange and bilateral venues. Any profitability directionally can you give on maybe Section 11? What was the price at which you sold or maybe some kind of profitability metrics under Section 11? This kind of opportunity is available in the summertime and the pre-winter time. So summertime, the demand is very strong and LNG prices are moderated basically. So we got this opportunity to sell significant quantity in the merchant market. We have 1.5 GW untapped capacity. So we have utilized this capacity in selling in these three areas, three-four areas, NVVN tenders, Section 11, or exchange as well as bilateral venues. So we got this opportunity during the summertime. We expect similar opportunity will be available during the pre-winter time also, maybe September, October kind of thing, depending on how the season progresses. Okay. Can you remind us on your take-or-pay on LNG? What is the current contracted LNG volumes you have? I believe you're looking at new tenders. How does it maybe just some details on when these take-or-pay contracts run out and what kind of renewal you're looking at? We are working on the fresh contract, in fact. It's under discussion right now. It's a work in progress kind of a thing. Currently, you have, I believe, 3 LNG cargos contracted under take-or-pay each year for the next 1 or 2 years? Yeah, up to 26 years, 3 cargos we have contracted. Balance cargo for the year we have taken out of, we have purchased a spot basis. Now the LNG price is moderated, so we will try and contract more cargos going forward. Maybe possibly more than three cargos is what you're suggesting, yeah. Absolutely. Absolutely. Absolutely. Just one more quick question on the distribution and transmission. Just want to understand the very strong YOY growth, the underlying drivers. You discussed it briefly, but if we look at AT&C losses and also distribution losses were generally slightly higher YOY, what drove that profitability in that business? Sorry, come again? In the distribution and transmission business, when we look at the underlying profit compared to last year, there is significant growth. Why just want to understand what were the drivers that led to that? Demand has gone up by about 6%-7% in the Q1 as compared to the last quarter, compared to what of last year. The profit is mainly coming from the approval which we have received from the regulator for the carrying cost, of close to about INR 100 crore this quarter. Okay. So that was the big swing in just the approval for that carrying cost? Yes, exactly. Thank you so much. Wish you all the best. Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Participants who wish to ask a question may press star and one on your touch-tone telephone. Next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Hi, sir. Congratulations on a very close set of numbers. My first question is, is it possible to let us know the current arrangement of sales from DGEN and SUGEN? Is it under Section 11, and what is the quantum available on the merchant basis? Because some quantum would be helpful, yeah. So SUGEN, if you look at the Section 11 provision, so whatever is untapped capacity, for example, we can be able to offer under Section 11. But since we have an NVVN tender, we haven't committed capacity from SUGEN and DGEN. So balance capacity we can offer on Section 11. What is the quantum and how long it will continue, the Section 11? It will be up to 30th June, I would say. It's a limited period of time during the summer month. So this is over, right? Yes. Yes. Now the entire capacity is free to be sold in the merchant, right? Yes, exactly. Exactly. So Mohit, just to add, typically what happens is that if you have an untapped capacity, when you say untapped capacity, it includes a long-term contract, and it includes your bilateral contracts also. Over and above that, if you have any untapped capacity, then you have to sell it under Section 11. So typically what we do is we also do bilateral contracts for short term, for one month, two months, three months. Those capacities are not available for Section 11. And generally, Section 11 capacity, government is asking we give the schedules during the peak time. We provide the schedule, and as per the schedule requirement, we have to supply the power under Section 11. It will not be consistently being provided. Government is providing the schedule when they need the power. And accordingly, we have to supply power under Section 11. Is it right to say that the Section 11 is over now and most of the capacity is free, right? Yeah, it is up to the scheme was available up to 30th June. So now it is not no longer Section 11 is applicable at this moment. Second question is on these T&D losses. Of course, generally you see improvement every year. This particular quarter, we have seen the increase in T&D losses. Is there a particular reason which affected our AT&C losses? See, if you look at the Ahmedabad and Surat distribution area, there is a growth of about 6%, 7%. And there will be more retail selling to more retail residential area, I would say, where the losses will be a bit higher as compared with the industry as well as commercial consumer. So sale to those residential consumers are higher, and where the losses are higher, I would say. That is why it has been gone up by a few basis points. My last question, the other expenses that have gone up, I think, INR 60 crore QOQ and YOY by INR 100 crore. What expenses? Sorry, if you can repeat your question. Other expenses. Other expenses. If you look at the expenses line item, it has gone up by other expenses. Other expenses, see, the plant operation is higher. If you look at generation PL, about 40%, it has gone up to 60%. So obviously, my plant O&M expenses will be higher. So because of the plant higher operation, my other expenses are also higher, which is being booked in the other expenses. Understood. Understood, sir. Thank you, Mr. Luther. Thank you. Thank you. Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one. Next question is from the line of Jiten Rushi from Axis Capital. Please go ahead. Good evening, sir. Thank you for taking my question on Q3 numbers. So my first question is on the gain on sale of gas on merchant basis as well as NVVN. So you said in the opening remarks that it is incrementally higher by INR 917 crore, right? Sorry? It is incrementally higher by INR 917 crore year-on-year? 517. 517 crore. Sorry. My bad. So sir, last year, same period, I think the gain was almost INR 140 crore or right? Incremental? I think there's INR 130 crore gain from merchant and INR 10 crore from LNG. Yes, yes. About INR 145 crore was the gain for the last year. Okay. So this year it is like this is. This is the incremental profit of INR 517 crore we are talking about. Incremental. Yes, yes. I got it. Okay. And sir, this is carrying cost which has got approved by the regulator, is for the distribution you said, right? Which is still this. Licensed distribution area. DL license distribution. Okay. Ahmedabad and Surat, right, sir? Yes. Sir, one more question on the bookkeeping side. We have seen a sharp increase in the employee cost. What was the reason for that, sir? There will be a sharp increase in the employee cost. Generally, if you see in Q4 2024, it was INR 147 crore. This is INR 173 crore in Q1. So obviously, there is a sharp increase. Comparing Q4, but rather I think quarter to quarter one has to compare. Quarter one also is INR 146 crores last year. Generally, the Q4, if you look at the Q4, my capitalization is highest in Q4. Sorry, can you come back? In Q4, capitalization is highest in Q4. So because of the highest capitalization, some of the cost of employees also get capitalized because of the accounting, the capitalization of expenses. And Q1, capitalization is lower, I would say. This is not the trend. So this is a different trend we saw. Okay. Okay. Okay. And sir, on the capital guidance, can you throw some lights for this year? Capital guidance is the same guidance. About 2012, we planned to stand off our license as a franchise distribution business. INR 1,750 crores is for EMR for license distribution business and about INR 200-INR 250 crores is EMR for the franchise distribution area. In the renewable part, sir? Renewable progressively, we have INR 18,000 crore-INR 20,000 crore investment plan for next 2-3 years, 3-4 years, I would say. Every year will stand about close to INR 5,000 crore. But it will be progressively spent, based on the commissioning of the projects. Sir, only opening remark, I think you said something on the green hydrogen and the PLI, which is not part of the presentation. Can you repeat, or I can take it separately after the call also? It is fine for me. Yeah, you can take it separately after the call. Okay. Okay, sir, that's all from my side. I'll come back in the queue. Thank you in all the questions. Thank you. Thank you. Next question is from the line of Bharanidhar from Avendus Spark. Please go ahead. Good evening. Am I audible? Yeah. Yeah. So I just want to clarify the split of the Section 11 and the contracted capacity through either PPA or bilateral plant-wise. SUGEN has about 80% contracted to own discom. So should I consider the remaining was offered in Section 11 in the quarter? So about 75% is tied up with the long-term PPA for SUGEN as well as the UNOSUGEN. Yes, balance is available. Part of it is available for Section 11. So Bharanidhar, you are right. For long-term PPA, it is 75%. But as I told earlier, that we also do short-term contracts. Now, if you already have a short-term contract in place, that will not get counted under Section 11. So that's what. So 25% on SUGEN and UNOSUGEN, whatever is remaining, that would be given to bilateral or merchant or Section 11, sorry. So what would have been that bilateral portion from SUGEN and UNOSUGEN in one queue? We are not sharing those numbers. If you look at merchant on a holistic basis rather than dissecting it into different sections. Okay. So of the overall capacity of SUGEN, UNOSUGEN, and DGEN, which is 2,730 MW, how much would have been given to merchant in MW in one queue? So, merchant total MUs, which we have sold with comparison Section 11, NVVN, and bilateral or on exchange, is around 1,700 MUs for the quarter. Okay. Okay. That comes to what percentage? I mean, I can calculate, but just for discussion purposes. Sorry? Come again? That will come to what percentage of overall sold by these three plants? I'll give it to you offline. I don't have the numbers as of now. Okay. Okay. Got it. And pre-winter, like in September and October, again, there would be probably increased sales in merchant or bilateral. But do you foresee Section 11 in those months? It depends on the weather condition, I would say. So how the weather condition will be there, it depends on the weather condition. Though the weather will not be so severe like summer. As of now, it is too early to estimate whether Section 11 will come or not. Okay. So for the remaining part of the year, we can assume that it would be PPA capacity plus some merchant sales that can happen from the untapped capacity. Yes. Okay. Okay. Final question. I think the last quarter's call, some number around average tariff and average cost of generation for NVVN was said. I think it was cost at INR 8 per unit, tariff at INR 10 per unit. You get the contribution of INR 2 per unit. Was this materially different or was it same for NVVN? Generally, the contribution is higher in the summer months. We can't give the exact number or amount of contribution. It's higher in the summer during the summer months. Okay. And what would be the average cost of generation at present or for the remaining, say, nine-month period for these gas-based power plants in rupees per unit? See, it depends on your material cost, cargo cost, basically. So average, so far, what we have acquired is about $9.5 for an MMBtu, fuel cost. That will roughly translate to INR 7-INR 8 per unit landed cost? I think about INR 6-INR 6.5 kind of a thing, variable cost. Okay. Very good. Okay. Okay. Thank you so much. I'll come back in the queue. Yeah. Thank you. Next question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for the opportunity and congratulations on a good set of results. I joined the call a little late, so pardon if there is a repetition. In terms of our quarterly PAT of roughly INR 996 crore, can you share if one has to move one-offs in this? What could be a recurring PAT for us? Out of PAT of TBD of INR 1,315 crore for Q1 of the current quarter, the one-off is already INR 102 crore, which is a carrying cost. We got approval of INR 102 crore carrying cost. That is the one-off items. Okay. But sir, I think Section 11, again, probably if it is not continuing at least for the next coming quarter, will it be possible maybe to subtract that and to provide some number? No, we treat as a Section 11 part of the merchant sale. So we don't distinguish the Section 11 differently. So all of our NVVN tender, merchant sale on over exchange and bilateral basis and Section 11, we all treat as a part of the merchant sale. So Vishal, I think on a normalization, if you're talking, I think you'll have to see on a YOY basis rather than a quarter-on-quarter basis. So if you look at last year or any year, Q1 has always been better compared to any other three quarters because of inherent demand in the country, which is very high. And that's why having higher merchant sales. So if you want to normalize, I think you'll have to look at Q2 versus Q2 rather than Q1, Q2, Q3. Okay. So is that fair to say in the quarter one of last year, there was Section 11 that time also? No, Section 11 was the first time which was imposed on gas-based power plant in this Q1. What we are trying to say is that merchant sales on a holistic basis, there was profit in the last year Q1 also. There are profits in this year Q1 also, which typically goes down as we progress towards the year. In Q2, Q3, and Q4, typically it tapers down because of lower demand. Okay. Okay. Sure, sir. Maybe, sir, on this Section 11, any number that is there in public domain of the electric share in terms of the realization, how exactly it differs maybe with our contracted quantity? If there's any directionally ballpark percentage higher or if you can just share. Yes. We explain we don't differentiate the Section 11. It's the PAT of the merchant sale. So as far as the formula is concerned, it is 120% of your variable cost. Now, variable cost is defined as your gas price, which is defined by GSPL or the defined price by the GAIL price, against which our sourcing cost is lower. Another one is on the O&M cost, which are variable. There is some normative parameters against which our O&M costs are lower. So if you look at from a holistic basis, my margins would be higher than 20%, which is being given under Section 11. Okay. Okay. Okay. Got it. Got it. Yeah. So that's all from my side, sir. Thank you. Thank you. Thank you. Next question is from the line of Swati Jhunjhunwala from JM Financial. Please go ahead. Yeah. Thanks for taking my question and congratulations on a good set of numbers. Sir, I might have missed it. So the C&I capacity of 525 MW, when is that expected to be commissioned? Next 2-3 years. 2-3 years. Next 2-3 years. Okay. So can you give me a broad sort of a number as to what you are planning to commission this year versus next year versus FY27? Are the 8 projects that you highlighted, is that it, or there might be more? Okay. So for 8 projects under development right now, if you look at by March 2025, 1 project of 420 MW is getting commissioned. Right. The rest of the project is getting commissioned from next year onwards. Some capacity will get commissioned into C&I portfolio also. Understood. RE power capacity is progressively getting commissioned because its commissioning deadline is somewhere around December 25, but some part of the capacity is getting commissioned before March 25 also. Understood. On the hydro PSP, so this 8.4 GW, can we assume a sort of a 4-5 years timeline for this one to come up since it's still in the approval phase? Yes. At least five years, I would say. Okay. Just one question on this PSP. Are we looking at it at a is it near a river or is it not near the water body? Because I think the water requirement is very different. I think it is all run-of-the-river projects. They're all pumped storage hydro projects. And those projects are typically in those areas where rainfall is good. So once you have good rainfall, you can collect the water and use it for. There will be a reservoir for upper as well as lower reservoir. In that area, it will be developed. Understood. So it's not run of the river is what you're saying? No, no, no, no. Okay. Okay. Thank you so much, sir. Yeah. Thank you. Next question is from the line of Aniket Mittal from SBI Mutual Fund. Please go ahead. Thank you for the opportunity. So one clarification. For the quarter, what were our LNG sales or the gains that we made on LNG? LNG sales were very, very minuscule. Minuscule. Minuscule. Now the opportunities to generate the power and sell in the merchant market. Very minuscule amount we sold in the LNG. This overall number of, let's say, INR 660 crore worth of gain that we met, almost INR 650 crore will be merchant-related. Is that fair? Sorry? Come again, Aniket? So the overall profit, if I look at the overall gain on merchant-plus LNG sales for this quarter is roughly INR 660 crore, right? Yes. So out of this, about you're saying INR 650 crore is just merchant-related only. LNG sales would be INR 10 crore or more. Is that fair? About INR 40 crore is the LNG sales. The rest is the merchant. 40 crore is about 620. So on the 1,700 MUs that we sold, we earned INR 620 crore a bit. Is that right? Yes. Okay. Thanks. And sir, is Section 11 for us being more profitable than the actual, let's say, bilateral contract that we've done between the two? I think, Aniket, it is very difficult to look at it in that fashion. As Saurabh rightly said earlier, Section 11 does not guarantee you RTC power. If you want to participate in Section 11, you'll have to have your base load running, and then you can participate in Section 11. I think we'll have to see on a holistic basis wherein you enter into some short-term contract, which will give you an RTC power, and you can use your generators on a base load. Then once that is there, even though at a lower profitability, then that opportunity is available for you to ramp up faster and take utilization of Section 11 or peak power demand and what other opportunities are available in the market. I think it's a combination of all of them which gives you better profitability. Okay. So just one more note-taking question. What were the merchant volumes that we did in Q1 of last year and for FY24 as a whole? In terms of MUs, about 400-500 MUs last year. For Q1? Hello? 400. 400 MUs. 400 MUs. 400 MUs for Q1 of last year? Q1 of last year. Comparable quarter of last year. For FY24 as a whole? 1400. What would have been the overall merchant gain for last year? Merchant gain would be around INR 325 crores. Got it. Got it. Those are my questions, yeah. Thank you. Thank you. Thank you. Next question is from the line of Ishan Minda from IIFL Securities Limited. Please go ahead. Thank you for the opportunity, sir. I just wanted to understand if there has been any development on the part of discom privatization or parallel licensing? So, as of now, there is no further development because parallel licensing. We have replied to all queries of the regulators. So, we are awaiting the further action from the regulators. And privatization, now the election is over. So, let's see if we have to watch the state government action going forward. But we are very keen to participate in any opportunity available in the privatization. Sure, sir. With Section 11 only up till Q1 of FY25, how has the performance of your gas IPPs been? If you could provide any qualitative comments? So we don't know the other, but we have our gas-based power project is ready to meet any demand, I would say, either merchant market, Section 11, everything. So we are in fact, it's a state of readiness condition for all of our projects, including the DGEN project also. Sure, sir. But at current merchant trade, are we able to maintain a good level of margins on our merchant operations with DGEN and? If you look at the Q1, the significant profit we have won from the merchant market. Yeah. Sure. Thanks. That's from my end. Thank you. Thank you. Next question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead. Hi, sir. So up till July this year, almost 6.5 GW of renewable capacity has been awarded. Sorry to interrupt, sir. Your voice is very low. Audible? Hello? Yes, please go ahead. Yeah. Yeah. So till July this year, almost 6.5 GW of renewable capacity has been awarded, but we haven't won any project as of yet. So are we planning, or is it a decision that we have taken to execute this portfolio first and then get back in the bidding process? Last six months, I would say, last Q1 as well as last six months, we have won about more than 1.5 GW of capacity in the last year. We will be bidding in FY25 as well for new projects. Absolutely. Absolutely. Yeah. Nikhil, so aim is to have at least 5 GW in next two or three years to reach 5 GW. So we are right now under construction, would be around 4 GW. And so we will keep on looking at projects. Only thing is we have to meet our parameters. If they are meeting, then we will be wanting to take more projects. Understood. And sir, we are also doing merchant RE projects. So will we be taking up more such projects or? As of now, one project is under construction. We'll commission that one project and then we'll see. As of now, there is no further plan of merchant project. Okay. And this will be purely based on sold-on exchanges or through bilateral contracts as well? We'll see wherever base price is available, either through stock exchanges or through the bilateral bidding, we will do it. Something like a virtual PPA as well? It depends on the available opportunities for this kind of a project. Sure. Sure. Thank you and all the best. Thank you. Next question is from the line of Amit Bhinde from Morgan Stanley. Please go ahead. Hello, sir. Congratulations on the great set of numbers. I just wanted to get some update on the note number 3 that you had been recently putting out where you quantify the revenue from the merchant and RLNG. So how much it is this year? Last year, it was INR 72 crore. Sorry. Revenue from merchant? Merchant and RLNG that you had been putting in the notes of account recently. This time, you haven't put that, note number three. It was not a very significant number. When you have the auditors dropped or not. That is only for the RLNG sale, you mean? Yes, exactly. Okay. Okay. So for merchant, I mean, would it have been around INR 1,700 crore this year? Or sorry, this quarter? We said the 700 MUs is there. Okay. 1700 MUs is there. So I'm just assuming a price of around INR 10. Is that a correct number to guess? You can assume that. That is an approximate number. Right. One other clarification that I wanted to get is that RLNG and merchant gains, this year is INR 517 crore increase or absolute? Because last year, I think. Incremental. It's incremental. Incremental. To the previous question, you said it is INR 145 crores for Q1 F24? Yes, exactly. Sure. Okay. Those were my questions. Thanks. Thank you so much. Thank you. Next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. Just a couple of follow-ups. I wanted to understand on Section 11, whatever untied capacity you have, you have the option to sell it in the power exchange, bilateral support by getting there. Is that fair? You have the option as a generator to sell in any market segment where you find better prices? No, no. I think if you before invoking Section 11, if you had already tied up your merchant capacities on a bilateral basis, that you cannot offer under Section 11. All the other capacities, you will have to offer under Section 11. If there is scheduling by the regulator or by the SLDC, if they are not scheduling, you are open to sell in the merchant market. So under Section 11, it has to be based on scheduling by the SLDC. Is that what you said? Yeah. So under Section 11, if it is scheduled, you will have to supply power. If it is not scheduled, you are open to sell in the merchant market or wherever you deem fit. Okay. So just because I was trying to understand, if we look at the variable cost of INR 6.5, is what you mentioned based on the LNG price, there is obviously going to be incremental O&M also. And then you have based on the number that you mentioned, it looks like an EBITDA spread of INR 4 per unit. Overall, it looks like about INR 12 per unit. So we're just trying to understand when you sell this, these would be in high-priced DAM market. So when these are scheduled by SLDC, I just wanted to understand the clearing mechanism for this. No, no. So there is no clearing. When you say clearing mechanism, can you just elaborate on what you want on the clearing mechanism? I was trying to understand the prices coming to about INR 12 per unit there. How are you scheduling this power sale? So I'll tell you. The scheduling is not done by us. It is done by, let's say, under Section 11, the SLDC would do the scheduling, right? Under bilateral, the other person who has entered into a contract will do the scheduling. Under NVVN tender, again, NVVN will do the scheduling. So we don't have scheduling in our hands. Only thing which we have is that if the scheduling has not happened, and if there is an untied capacity, if you are able to sell in the merchant market, we will sell. Okay. One more question I wanted to ask on the LNG cargoes that you are looking to tie up. Can you maybe remind us the three cargoes that you had for take and pay? How much of your overall generation these three cargoes would account for? The rationale for maybe tying up more cargoes, are you seeing more confident of using that in the merchant market on a longer-term basis? So I think if I look at my cargo requirement or my LNG procured, as of now, under my PPA obligations, I have procured around 50% of my PPA obligation. Balance 50% is open. So I think I would want to do that first in terms of my PPA obligations are concerned. Merchant, we keep on looking at opportunity on a year-on-year basis. We don't want to lock ourselves because these are all take-or-pay contracts. So if tomorrow merchant prices go down and you are not able to sell on the merchant market, you'll have to pay for that cargo. So that we don't want to do it on a longer-term basis. A year, year and a half, we keep on looking at it and then keep on procuring cargoes for the merchant market is concerned. And anyways, all these long-term contracts are all variable-rate contracts. They are not fixed-rate contracts. So you are just tying up the quantity rather than the prices. That, I understood, tying up the volume. Just that obviously the demand is not there. I was trying to understand if these are take-or-pay contracts. But you're suggesting that anyway, with the higher LNG cargoes, you would still need that for the PPA as well, right? So. That's right. Okay. Thank you so much. Thank you. Thank you. Next follow-up question is from the line of Jitin Rushi from Axis Capital. Please go ahead. Yeah. Thank you for taking my question. So just harping on the LNG tie-up. So now, as you said, only three cargo tie-up is pending, which is, and this is for the 50% of the PPA capacity. And balance 50% we will be procuring from the domestic market. So these three cargo. I think it is actually wrong. What we said was three cargoes we have tied up until December 26 as of now. There are some contracts for domestic market procurement. Both put together gives you a tie-up of 50% for my PPA capacities are concerned. Okay. Basically, three cargoes up to December and domestic contract put together is 50% up to December 2026 broadly. That's right. That's right. Balance 50% under my PPA obligations is open. And whatever I want, I am anticipating to be sold in the merchant market, that is open. This tie-up is at around $9.5 MMBtu, right, sir? Yes. No. So $9.5 are all those fixed contracts which we have done on a spot basis. The 50% cargo which I told about under the PPA are all variable-rate contracts. These are not fixed-rate contracts. Because under the PPA, it has Section 62 PPA, wherein the LNG cost is a pass-through. Okay. So this cargo tie-up also cost is a pass-through. It's an open contract based on the delivery. Under the PPA, it is a pass-through. Pass-through. Okay. So this is basically on the date of delivery, whatever cost would be there, it is a pass-through, what I understand. Correct? Yeah. Yeah. Okay. Sir, any further tie-up which you are targeting now as you have put the tenders, as you said? So when can you expect these tenders to get awarded in terms of further tie-up beyond 26 or for the balance 50% or open capacity? We are under discussion. So we will keep track as soon as possible. Okay, sir. Thank you, sir. Thank you. Thank you. Next follow-up question is from the line of Bharanidhar from Avendus Spark. Please go ahead. Yeah. So are we bidding for any thermal projects which might be up for sale or on the NCLT? So yeah, looking at it, so if good assets are available at reasonable price, yes, we are keen to acquire those assets on the thermal side. Okay. So any target we have, we will want to add so much in thermal in the next 2-3 years? There is no such target. There is no such fixed target. So it depends on the quality of asset and the price also. Understood. And coming to the recent developments where battery prices are coming down, there have been several bids with battery storage as a component. And have we been bidding there? If not, what is our thinking and strategy there? So far not. So far not, but we are evaluating it. Our understanding is the battery and the pumped storage will coexist in the market. Correct. So if we are having a pipeline of 8.4 GW on pumped storage, my question is, in battery, why aren't we taking advantage of the low price? We are evaluating it, and we would look at it in an opportunity point in time. But right now, we are also evaluating battery storage as a solution and bidding for that. So actually, Rishi, my point is, is there any challenges specifically you are seeing in battery which is keeping you still in evaluation? No, no. Meaning. Okay. Okay. Okay. My last question is on, again, our Q1 sales in the merchant. Now, if I did just a calculation on how much we actually generated from SUGEN and DGEN based on the sales you provided, it comes to about 3,300 million units. So you're telling we sold 1,700 in merchant. So roughly about 50% is what we sold in PPA plus NVVN. Yes. Or is it NVVN also you are considering as merchant? NVVN is merchant. NVVN is also merchant. We consider the merchant sale. Okay. So 50% we are selling in PPA, and that 50% also predominantly will be in only coming from SUGEN and SUGEN. Correct. Okay. The LNG contract that we have for 50% to be used for the PPA, there we have variable-rate contracts. What would have been that $ per MMBtu in Q1 on an average? The cargo which we have contracted is about $9.5. The domestic, which is about, will be much bit higher than the $9.5, I would say. So I think variable rate, what you're saying about the PPA, it would be not only imported cargo, it will also be domestic procurement. Correct. So for which Saurabh sir said for the imported cargo, it was $9.5. For domestic, he said it's a little higher. Yeah. Yeah. We would have procured in the spot market for merchant. What would have been that $ per MMBtu in Q1? This 9.5 includes the spot cargos also. Okay. So the 3 cargos that we have contracted, we are using it both for PPA market and also to be used to sell in the merchant market. So the three cargos which we have contracted is mainly for our long-term beneficiary. Okay. Thank you. Thank you. Next follow-up question is from the line of Vishal Periwal from Antique Stock Broking. Please go ahead. Yes, sir. Thanks for the follow-up. Sir, in your slide of renewable PPA contracted capacity and installed capacity, operationally, can you share? I think you did mention briefly in one of the participant answers that we are trying to tie up for the PPA. So is it the onus on us, or is the agency which has called this bid? So they have to get the PPA for us. No, it is trying to tie up the PPA. PPA is yet to be signed. So we have one under the option. PPA is yet to be signed with the beneficiary. Okay. So I think your remarks do mention in the same slide that the SCOD will be 24 months after PPA. There are a couple of capacities which are already contracted. Maybe difference running in, say, RTC, if it's one, I'll take an example. Difference is roughly 260 MW. So then operationally, how exactly it works? Do we commission the capacity? Do we wait for the PPA signing up, or do we only commission the 100 MW and then? No, no, no. We start commissioning the project once the PPA is signed. That's why SCOD is linked to the PPA signing rather than on the award of the tender. Okay. No, but when we are inviting tenders, we would be—I mean, from the equipment manufacturers, we are putting 368 MW complete. We'll be putting up. Yes. Okay. But then the commissioning, in the sense, we are actually putting up only 100 MW. And then. No, no, no. 368 is the installed capacity. PPA would be for 100 MW. But since these are all renewable projects and some of these contracts are with a higher CUF. So let's say, in example, REMCL, it is a CUF of 85%. So if I want to supply 85% power or PLF basis for this renewable project, I will need to scale up my back-end capacities. And that's why you are seeing 100 MW of tied-up, but I am actually installing 368 MW to meet those standard conditions. Okay. Okay. Okay. So it's actually, in a way, because of higher CUF, so most of it is actually tied up. That's the way to understand, is it? Yeah. Right. Right. Right. Okay. Okay. Sure. Yeah. That's all from my side. Thank you. Thank you so much. Thank you. Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr. Saurabh Mashruwala for the closing comments. Thank you so much, everybody. We wish everybody to stay safe and healthy. Thank you so much. Thank you. Thank you very much, sir. On behalf of Torrent Power Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.