Ladies and gentlemen, good day and welcome to the Torrent Power Limited Q2 FY25 Conference Call. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Saurabh Mashruwala, CFO from Torrent Power Limited. Thank you, and over to you, sir. Thank you so much. Good evening to all of you, and thank you for joining the conference call of Torrent Power for Q2 FY25. First, I will take you to the performance of the quarter, after which phone lines will be open for Q&A session. Next, the performance of the company at PBT level first, then we'll take you to the tax expenses separately. Reported PBT for the quarter stood at 689 crores compared to 741 crores in the corresponding quarter last year, a reduction of 52 crores which is about 7% on a reported basis. PBT for the current quarter includes non-recurring credit of 67 crores on account of two factors. First, accounting of 99 crores on receipt of favorable orders in the licensed distribution area, which mainly includes the carrying cost allowance, partially offset by lower generation from the wind power project on account of forced stoppage of wind turbines due to heavy rain and Cyclone Asna witnessed in Gujarat leading to a reduction of contribution by 32 crores. Adjusted reporting one-off, PBT for the quarter stood at 622 crores as compared to 741 crores in the comparable quarter of last year, a reduction of 119 crores, which is about 16%. Business-wise factors contributing to this performance are as follows. First, contribution from thermal or generation business reduced by about 80 crores, mainly on account of two factors. First, lower contribution from sale of merchant power and LNG of 35 crores. The country in general witnessed a lower electricity demand during the quarter, mainly on account of extended and widespread monsoons in the current quarter against periodic monsoons during the comparable quarter of last year. So in any way, both the quarters are not strictly comparable. Despite the lower power demand, the company was able to maintain almost same level of merchant volume. However, margins were lower due to extended monsoons, keeping merchant prices subdued. Second, additional contribution for thermal generation was also impacted due to higher O&M expenses and lower incentive on account of scheduled maintenance in the quarter. Second, non-cash adjustment on account of foreign exchange variation of 24 crores. The contribution from renewable generation amidst lower wind regime reduced by 29 crores on account of, first, lower PLF from existing wind power and solar power plant due to lower wind speed resources and radiation effectively. Lower contribution from capacity of 274 MW commissioned during the quarter as the project is under stabilization phase. The operating leverages in transmission business compensated each other, and the segment as a whole remained stable in terms of profitability. Demand growth was flat during the quarter at 1% across all our distribution areas. Balance deviation is on account of other income, finance costs, and depreciation. This completes the explanation of financial performance during the quarter. Moving on to the project update, first update is renewable energy capacity of 274 MW got operationalized during the year, taking aggregate installed generation capacity of the company at 4.5 GW as of 30 September 2024, comprising 2.7 GW of gas, 1.5 GW of renewables, and 362 MW of coal-based capacity. The company was awarded pumped storage hydro projects of 2 GW in an auction conducted by MSEDCL during the quarter. Pipeline projects as of the end of the quarter introduced 3 GW of renewable power projects and 2 GW of pumped storage hydro projects and two transmission projects at Khavda and Solapur. Further details of the pipeline projects have been summarized in our latest investor presentation available on the website. Moving on to the new venture, first, the company's pilot project in green hydrogen plant in UP with PNG is expected to be commissioned shortly. Further, the company has got allocation of 18 KTPA green hydrogen production under SIGHT PLI tender at an average PLI of 28.89 Rs/kg. Technical feasibility has been done and including business planning under preparation. With respect to pumped storage hydro project, we have identified project site with potential of 8.4 GW of pumped storage hydro in the state of Maharashtra and UP. Pre-feasibility study completed and MoEF terms of reference have been granted for the entire capacity of 8.4 GW. Agency also appointed for the EIA study. As in four earlier years, we have been receiving LOA for providing pumped storage facilities to MSEDCL for aggregate capacity of 2.2 GW. That's all for the quarter. Now I would request coordinator to open the line for Q&A session. We wish everybody to stay safe and healthy. Thank you so much. I will hand over the line to operator. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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. Again, if you wish to register for a question, please press star and one. Participants may press star and one to ask a question. Our first question comes from Mahesh Patil from ICICI Securities. Please go ahead. Yeah, hello sir. Thanks for the opportunity. So my first question is with respect to the employee cost and other expenses in Q2. There seems to be some significant increase compared to Q2 last year. Employee cost are up by 18% and other expenses around 14%. So any specific reason, any one-off items in this? First, there is no one item. Normal increases are there. There was increase in O&M expenses for the higher merchant sales accounted for. Normal staff cost increase is there. The forex loss, which is a non-cash item, we have also booked as other expenses. So the forex share item is around 24 crore, you mentioned, correct? Sorry. Foreign exchange loss, that you mentioned is 24 crore, correct? In fact, if you look at the euro was about INR 90 as of 30th June, went up to INR 94 as of 30th September. It again came down to INR 91 as of today. So hopefully this will get reversed. It's a non-cash item in the Q3. Okay. Second question is regarding this Bhiwandi franchise area wherein the agreement is expiring in January 2027, and as we are almost entering 2025 now, any plans and related provisions in the agreement for further extension? Provision, the franchisee agreement of Bhiwandi when it last got renewed in 2017, there is a provision that with mutual consent, it can be extended for further than five years. When the time comes on the 27, we'll again discuss with MSEDCL for the extension. The agreement provides of extension period of further period of five years with the mutual discussions. Okay. Okay, so this will be taken up for discussion sometime in the next quarter. Appropriate time, we'll take it up with MSEDCL. Okay. Okay, sir. Thank you so much. I'll get back in the queue. Okay. Thank you. Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one. Participants, you may press star and one to ask a question. Our next question comes from Amit Bhinde from Morgan Stanley. Please go ahead. Yeah. I just wanted to know the exact quantum of merchant EBITDA that was there in the base quarter because to the extent that I remember, in Q2 FY24, we just had around 25 crores of merchant EBITDA, I think so. And most of the accounts had around 150 crores of revenue on that, which we used to disclose earlier. So now if I say 35 crores of difference, then we are indicating - 10 crores of merchant EBITDA. I don't think that would be the case, right? We wouldn't be selling anything on loss. So if you can help us with the exact numbers. In last quarter, merchant EBITDA was about merchant profit, I would say. It was about just about INR 40 crores, 42 crores. And current, I think there is a INR 35 crores reduction about INR 7 crores for the current quarter. 7 crores is the exact. So if I talk in terms of units, we had DGEN generating around 180 units, million units. And apart from that, some small sales that you would do from SUGEN, etc. So would the number of units be around 200? About 300 MUs. 300 MUs. You sold 300 MUs and you made INR 7 crores of profit. Yeah. Okay. Got it. The market was suffered because of the monsoon season. This Q2 generally is always as an impact of monsoon. And this quarter, monsoon is very widespread and very heavy as compared to last year was a very erratic monsoon, not that widespread. So last quarter or similar quarter, demand was very strong as compared with the current quarter. So this has impacted the merchant sale also, as well as our wind and solar field have also this quarter. If I look at 300 units approximately sold, 7 crores of merchant EBITDA, we are just making a 0.2 EBITDA per kilowatt. That's pretty low. I mean, when. If you look at the price also, over the auctions also, it was lower as compared. It was lower, yeah. Yeah, yeah. Right. So if you compare the comparable period also, it was a bit higher as compared to last year. So monsoon has impacted the quarter in terms of merchant volumes as well as PLF, wind and solar PLF also. So if you look at Amit, last year, Q2, there were erratic monsoons and it was not widespread. Compared to current year, in this quarter, it was a very widespread and very good monsoon because of which the demand has been impacted. So even after that sort of a demand, we were able to demonstrate that we will be able to sell merchant of 300 MUs in this quarter with a lower profitability. And anyways, I think now just one more number that I would like to understand. Earlier when the Brent price was around $85, our effective cost would be around 6.5 or so gas cost. So now with this Brent price falling steeply, where does our gas cost stand per unit? That's $75 a Brent. And roughly it will land at $75 and about INR 4.50. I think, Amit, so I think our long-term contracts are linked with Brent, so three-month dated Brent. But for spot cargoes, they are typically sort of fixed rate prices. So I'm not able to get a clear understanding on what is your question. You can't directly compare Brent with merchant cost of fuel. Long-term contracts are linked to Brent. But for merchant, we typically book spot cargoes and then we tend to convert that into fixed rates also. So effectively, we will have to look at it on a MMBTU basis. Right. Right. Okay. Got it. Because I was just trying to compare it with the slope because the Brent was correcting. Then I thought probably we'll have lower gas cost and lower pricing probably too. Yes, you are right. That is for our long-term contracts, which are typically for our PPAs which we have. Got it. Got it. Yeah. Thank you. Thank you. Those were my questions. Thank you. Participants, you may press star and one to join the question queue. The next question comes from Sumit Kishore from Axis Capital. Please go ahead. Good evening. Thanks for the opportunity. Just one question. Of your total contracted capacity of 2,149 MW, is it correct that PPAs have been signed for the entire capacity except the REMCL 100 MW? Renewable, you are talking about renewable capacity? Yes, yes. The contracted 2,149 MW, excluding the, I think, REMCL, it seems that PPS are signed across the board, right? In renewables, about 1.5 GW of operational capacity is completely tied up. And about 3 GW under construction. Out of the 3 GW, about 200 MW is not tied up, meaning for the merchant. Where is this hydro tied up? PPA signed or the LOA is received? Okay. No, so I was referring to slide 15 where the contracted capacity is 2,149 MW. Out of that, only REMCL shows that the SCOD is 24 months from PPA. So is that the? I think you are right, Sumit. PPA is pending for REMCL. And as I explained, for wind power, since it's a merchant capacity which we are putting up, there is no PPA. There is no PPA. Every other contract, we have already entered into PPA. Got it. REMCL should be, let's say, in a two-month or two-month time. In a month or two months, it will be signed. Okay. That was my only question. Thank you. Thank you so much. Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one now. The next question comes from Anuj Upadhyay from Investec Capital. Please go ahead. Yeah, hi. Thanks for the opportunity, sir. So just want to get your sense on the reimposition of Section 11. It has been extended for the thermal, but not for the gas-based section. So want to know your view on this. And if you can elaborate more on the recent PSP tie-up, which we did with Maharashtra, that would be helpful, sir. So Section 11, it is a during the summertime, it was imposed first and second years as far as I think. So there are quite we haven't got renewed also. So we'll have to see next summer how next summer will be. But as far as the PSP capacity of 2 GW is concerned, it's a 40-year contract we have. And about 85 lakhs per MW, 85 lakhs per MW per annum is the rate fixed cost. And the power will be provided by the MSEDCL. So we don't have to worry about the power. And it's a total of five years of continuous supply and three years is optional. They will schedule it. And it will be cycle of about 25% cycle of this energy stage. It's stipulated, basically, meaning maximum cycle of 25%. That is what the contract is. And there will be 2 GW of contracts. You sign for 40 years, and Anuj, just to add to what Torrent said on the earlier question of yours in terms of Section 11 not being extended to gas-based power plants. Typically, if I look at gas-based power plants in the country, apart from us, a lot of gas-based power plants are slightly costlier than coal-based power plants, so typically, on a FIFO basis, if you look at it, if demand is higher, then Section 11 typically would be available on gas-based power plants, but if demand is lower, I think then first port of call would be for coal-based power plants to be operational under Section 11, and then if it surpasses a certain amount of demand, then typically it would be on the gas-based power plant because it will be looked upon from the entirety rather than on one particular plant. So all other gas-based power plants are slightly costlier compared to coal. No, I get it. I get it, Rishi Bhai. So would it be fair to assume that, considering that the Section 11 can be imposed only mainly during the peak time period, say, four months of the summer, and then probably it may get extended for, say, September, October, probably, I'm saying, subsequent year as well. So DGEN at most can operate at around 35%-45% kind of a PLF in the best case scenario, I'm saying. Or even that is on a slightly higher side. Anuj, I think giving you specific numbers is very difficult because we also would, it will be just putting an estimate. But what I can tell you is that if you look at our Q2 numbers, DGEN has shown a higher PLF compared to Q2 of last year. Our merchant volumes are also higher compared to last year, even though the prices were lower. So whether Section 11 is imposed or not, I think we are in a position to run our plants without Section 11. In terms of profitability is concerned, I think it's a factor of what are the prices available in the market. And even at such subdued prices, which we have seen in Q2, we have been able to make profits. Now, those profits may not be significant compared to what we have seen in Q1. But typically, running plants in Q2 where there is a demand is pretty low, that also is, I think, a positive sign. I think that's what I can tell you. In terms of percentage PLF, very difficult to give you any guidance on that. No, fine. It's helpful. Thank you. Thank you, Anuj. Thank you. Participants, you may press star and one to ask a question. The next question comes from Sumit Kishore from Axis Capital. Please go ahead. I just had a follow-up question. What has been the total CapEx that you have incurred so far against the renewable portfolio expected project cost of INR 19,316 crore so far? And yeah, that's the first question. Sumit, I don't have those numbers. Against INR 19,000 crore, what we have spent on a broad ballpark number, I think we would have spent around INR 1,500 crore. But exact numbers, I can give it to you offline. As of now, we don't have that on hand. Too many numbers, we don't have right now. Okay. Total CapEx that you have incurred in the first half of the year at a consolidated level would be how much? This, INR 15 billion, is only for RE. Sorry, you are talking about the consolidated H1 CapEx which you have spent? Yes. So 15 billion is the RE CapEx that you have incurred so far for under construction projects. What is the total H1 consolidated CapEx also, if you have? Yeah, I'll tell you. So for renewables, for the H1, we have spent around INR 650 crore in the renewables part of it. For license and franchise put together, we have spent around INR 700 crore. And some 30-40 crore balance on other CapEx side. So if I look at the overall CapEx number, around INR 1,400 crore of CapEx which you have spent in H1. Okay. Okay. So just one observation that I wanted to clarify. If I look at Capital Work in Progress in the BSE filing, as of 30 September 2024, it is 2,143 crore. And as of March 2024, it was 2,472 crore. So CWIP seems to have come off in the first six months. So I would have thought that they should have gone up. No, I think, Sumit, that's because we have also commissioned around 247 MW of capacity for our TPLD 300 MW project. Partly it is because of that, and partly because our license distribution also would keep on capitalizing or commissioning certain projects. Yeah, very clear. So it is because of the capitalization only. Capitalization. Okay. Thank you. Thank you. Thank you. Participants, you may press star and one to ask a question. Participants, if you wish to ask a question, please press star and one on your touch-tone phone. The next question comes from Mahesh Patil from ICICI Securities. Please go ahead. Yeah. Hi, sir. So my question is on the other income for the quarter, which seems to have gone up to around 125, say, around 140. So any color on this, what has contributed to this increase in the income? It's a normal increase. It's not, I would say, 108, 225. It's a normal increase. I think yes, I would say. Okay. Mr. Patil, do you have any further questions? No, thank you. Thank you. Before we move on to the next question, a reminder, you may press star and one to ask a question. The next question comes from Sagar Gandhi from Invesco Mutual Fund. Please go ahead. Yeah, good day, sir. My question is on the renewable portfolio. So while we are planning to expand it to 4.3 GW over the next three to four years, can you highlight or give a broad perspective on any challenges that you face for evacuation of this upcoming capacity? If you look at the renewable portfolio, challenges will be the land acquisition, evacuation. These are the main challenges. As far as our portfolio are concerned, about 80% land is in possession. And all grid connectivity approvals are in place because those are the things, first thing we work on those things. And then we participate in the project. These are the things as far as we are concerned. Out of our under construction 3 GW of renewable capacity, that is, I mean, in pipeline. Are you trying to say that all of it is, I mean, has got transmission access or the transmission access will be there by the time this portfolio gets ready? So what we do is we keep on acquiring land. So last two years, if you look at it, then the 3 GW which we are looking at was built effectively in the last nine months. But before that also, even though we were not winning some bids, we kept on acquiring land which provided good PLF in terms of solar or wind. Along with it, we also kept on applying for connectivity approvals. So effectively, what has happened is for this 3 GW which is under construction, we have around 80% land which is already available. As far as evacuation is concerned, stage one connectivity approvals are there for all the projects which we have. We also keep on looking at additional land parcels and connectivity approvals as and when we keep on getting new projects. We'll be able to utilize those connectivity and land parcels which are there or which we have acquired over a period of time. Effectively, we have identified these two as could be a major roadblock for renewable projects. We try to mitigate those risks by taking without any projects in hand. We try to keep those land and evacuation ready. As and when a new project comes in, we are ready with that. Okay, and sir, my subsequent question is on the green hydrogen side, so while many players are figuring out on the manufacturing of the electrolyzer side, so what steps we have taken on that segment and what is our broad roadmap in that direction? You're talking about green hydrogen, right? So effectively, we have won 18 KTPA of green hydrogen under the PLI scheme. Right now, we are trying to find out a commercial endpoint in terms of the price at which we can sell right now and what are the costs at which we can generate. So unless we are able to get a clear answer to that, we have not committed any capital under that. As and when, so we are working on that. As and when we get a clear answer on both these points, I think we'll be committing the capital. But to give you any perspective on that right now is difficult. Sir, any tie-ups that you may have done on the electrolyzer side that you may want to highlight? Electrolyzers? Yes, yes. Because that is a precursor to manufacturing of green hydrogen. That's right. So what capability we have or are we tying up with some global players for building that capability? Yeah. Okay, so I think that would be a second stage. As and when we decide to commit on this capital for green hydrogen, then we'll be looking at electrolyzers, locking in electrolyzers and renewable capacity. But as I told you, we are still working on the end use in terms of economically viable end use and the selling price, so once we have a clear view on that, before that, we'll not be putting in any orders as of now. Got it. Thank you. Thank you. That is it, Sumit. Thank you. Participants, you may press star and one to ask a question. The next question comes from Mohit Kumar from ICICI Securities. Please go ahead. Hi. Thanks for the opportunity. Pardon me, I joined late, so I may be repeating the question. But my question is on the pumped storage, the hydro power plants. So where are we in terms of giving the orders and what are the timelines you're looking at? What is the kind of capital cost you are expecting? The pumped storage we are at, the feasibility study is completed. TOR receiving from the MoEF, and we have appointed the agency for the EIA study. And the letter of award is also received. So from the 2 GW capacity from the MSEDCL. So the cost will be roughly about 4.5-5 crore per MW. That is what our current estimation is. Sir, once you identify the site, right, so what is the timeline you're looking at? I think what is the PSP allows you 48 months? Am I right? To commission? Yes. 48 months for the commissioning. Yes, the date of PPA. Have you signed the PPA as of now, or is PPA still to be executed? Sorry? We are not able to hear you properly. So, have you signed the PPA or PPA still to be executed? PPA? No, I think we signed in some time. Understood. Understood. Okay. So thank you. That's my question. Thank you. Thank you. Thank you. Participants, you may press star and one to ask a question. If there are no further questions from the participants, I now hand the conference over to Mr. Saurabh Mashruwala for closing comments. Thank you so much for joining Torrent Power's this call. Thank you very much. Wish everybody to stay safe and healthy. Thank you so much. Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.