Is it possible for you to give the availability of Bangladesh plan t? Also, the revenues, EBITDA, and PAT for H1?

Bangladesh plant achieved a PLF of 69% and in terms of the revenue for H1, total revenue was Rs. 3,500 crores, fuel expense was Rs. 2,500 crores, EBITDA Rs. 892 crores and PAT after providing for depreciation and finance cost was Rs. 100 crores. The availability was 99%.

Where do you procure the coal for this?

We have an FSA and we have been procuring from the open market as well, which is largely imported and to a small extent we also use domestic coal.

And currently as of September, we have got trade receivables of around 105 billion, so is there any disputed amount part of this where we are waiting final judgment?

No, largely all our issues have been resolved. What you see in the balance is basically income recognized on September 30th, but subsequently the money was realized. So, there is no large outstanding towards prior period regulatory claims now.

How much was the unsecured perpetual debt paid off during the quarter? And also, how much was outstanding at the start, say March ‘23? And how much was paid? And how much is remaining as on date?

The perpetual debt at the beginning of the Financial Year, April 2023, was about Rs. 13,000 crores and on September 30th, it was Rs. 9,000 crores. I am giving you the rounded off numbers.

And how are we placed on the orders for Mahan 2? Have you placed all the orders or is something remaining?

The main BTG order for Mahan Phase-II expansion has been placed with BHEL. It happened about 2.5 months back, which takes care of the substantial component of the packages and balance as we move forward, will be taken care of.

Just one thing to add. So, actually in this project we are going with Split Package Contracting Philosophy, so there are a large number of packages to be awarded. So, there is the main EPC BTG package which has been awarded to BHEL and then there are number of other balance of plant and other contracts which should be awarded over a period.

As Nishit rightly pointed out that it is not an EPC contract-based philosophy. We are going on Split package-based philosophy. There are approximately about 50 packages that have to be contracted. BTG being the biggest one has already been placed with BHEL and the team is in the process of placing the orders of contracting for the rest of the packages.

Do we have any plans to add more thermal capacity going forward?

We have already given the plans of about 6 ,000 MW total over and above what we have today let us say 15,000 MW, I am talking about rounded-off numbers, so that is already planned and under active consideration to develop.

And we got expansion projects as you know that we have many locations and most of them have the adequate infrastructure to go for expansion , so we are evaluating it as Mr. Khyalia mentioned and we will move forward once these plans are formalized.

And sir just a final question, what is the total CAPEX expected for Mahan 2?

Mahan Phase-II CAPEX is about Rs. 12,500 crores.

Thank you. The next question is from the line of Nirav Shah from GeeCee Investments. Please go ahead.

Good evening, sir and congratulations on fantastic numbers. So, few questions, firstly, we have a sizable open capacity , at the same time our balance sheet has strengthened a lot, so what is the strategy over here in terms of will we keep it this way or will we look to tie up a part of it or just if you can elaborate on the strategy going forward?

We have a capacity right now close to about 3 ,000 MW, which is open capacity, and we keep deploying it, either the power generated goes to the merchant market or we keep entering into short-term contacts and then we keep renewing it as and when the tender comes. So, it is a two-pronged strategy. As you know, the merchant market has been quite good in last one year or so, which has contributed to achieving a good amount of EBITDA of what we have reported to you, and we will keep looking at the opportunities. If short-term, medium-term contacts are coming, we do apply and we like to employ our open capacity accordingly. But it is something which we are not very concerned about because last two years’ experience has been very good in terms of deployment of our open capacity.

With the current net worth and net debt position, I mean what is the strategy to improve our ratings and at the same time to explore the dollar funding market?

Post-merger, the rating of the Company has already improved. We have been rated by CRISIL and India Ratings both. While India Ratings has given us A with positive outlook, and CRISIL has given A/Stable and now post-merger and with lot of positive developments that have taken place, we do intend to approach the ratings agencies again for review and hopefully in few months from now we can see it. Of course it will depend on their evaluation, but we are quite hopeful that the credit profile of the Company has improved significantly. We have a very strong case for rating improvement. As far as the international market is concerned at this point of time, we are not pursuing it.

And sir on the tax rate, we have had a good amount of profits coming in the last few quarters, so what is the position on the carry forward losses or by when will we expect to start paying or coming under the normal tax bracket?

We have carry forward losses as on September 30th, of about Rs. 24,000 crores - Rs. 25,000 crores and that will give us enough shield for some time, and then let us see how it goes and we may come in the tax bracket thereafter.

And last question is on our inorganic opportunities, I mean it in the media i t’s coming about for the 2 plants, but overall, what is the strategy over here?

See, I must tell you that today in our fleet of eight operating thermal plants, four of them have been acquired by us, and if you look at our track record, we have a strong track record of turning around these stressed assets. So, we do evaluate the opportunities as and when they come in the market or come to our notice and depending upon the cost benefit analysis , the cost at which it is available, we evaluate the terms then take a call whether we have to go for it or not.

Thank you. The next question is on the line of through Dhruv Muchhal from HDFC AMC. Please go ahead.

First question was on the Gujarat PPA; I think there was some readjustment in the last quarter. Does it continue even in the current quarter ? And what is the approach that we are taking for that adjustment? Are we providing for it or is it part EBITDA or revenue?

In the last quarter we took an adjustment of around Rs. 1,200 crores because of the index adjustment as per the C ERC order, the tariff computation is based on the GR, based on the base rate as well as the CERC indexation that’s for 6 months. So, considering this order, we have taken an adjustment of Rs. 1,200 crores and thereafter we are continuing to recognize the revenue based on the same method. So, there is no subsequent adjustment required.

So, on recurring basis, it is in line with what the order or what? Management27 30: Yes, with the CERC order.

This was first. The second question was from a near to probably 3-6 months basis we are seeing that the coal inventory across the system seems a bit low, probably that will influence the availability of coal and probably even in the merchant market the availability of volumes , s o how do you see this impacting us or influencing us for our merchant portfolio probably?

Actually, the inventory at our power station is quite good, and in recently concluded SHAKTI B(viii) auction, we have fortunately got good quantity and we don't foresee any issue for next three months. So, at least for the next three months, we are very comfortable and by the time, obviously the possibility of further production of coal going up is there and we don't see any challenge now in this field.

So, for the next three months, you are reasonably secured in from your merchant market or from merchant coal?

Correct.

And the last tw o quick questions is on the FGD, have we done the FGD CAPEX and if not, then what is the quantum that has to be done ? What is the likely CAPEX that you will have to do in the next 2 - 3 years for that?

We have about 11,600 MW of capacity where we have to put the FGD in place. We have already placed the order for the FGD and the target date or the date by which we have to have FGD in place is between FY26 and FY27. We are well prepared, and small CAPEX will be incurred this year, and going forward, basis the need arising, we will keep spending it, but large CAPEX will only come towards last two years. We have already placed the order that is what something which I would like to clarify.

So, large CAPEX will come in FY26-27, not before that?

And you will earn the regulated ROE probably somewhere in that regulated ROE range?

Across all our PPAs.

And sir one last clarification on your PPT, you have given the merchant volumes long term PPA and this, so in the merch ant volumes you even include PPA s, I mean plants where you have PPAs for say 2 -3 years, those are also included in that or that is part of the long term?

The classification is PPA, medium term and long term both.

For example, the 2-year PPA or 3-year PPA is part of PPA, it is part of medium and long term, right?

Yes.

Thank you. We have the next question as a follow up question from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead.

Sir, can you give us the plant wise EBITDA of break up for Mundra, Tiroda basically all the plants?

We actually don't publish the plant-wise EBITDA numbers. Post the merger now we have a one single integrated Company with Mahan and Godda being outside as separate legal entities. So, numbers what we have presented, and we would like to present the consolidated number. If you want PLF plant wise that can be given.

No, sir I wanted the EBITDA and what is our average cost of borrowing as on date as on September ‘23?

It is a little above 9%, as you know the MCLR has gone up significantly in the last 16-18 months or so, and so the cost of borrowing also because it is MCLR linked borrowing. Current MCLR is about 8.45 % and we are charged some margin on that, so our average cost of borrowing is around 9% plus few points 9.05% or so. That is the weighted average cost of all borrowings.

How much amount of our capacity is tied up with medium term PPAs?

Through medium term, we have 500 MW, and the rest is merchant.

Yes. We are talking about 3,000 MW under open capacity and out of that , 500 is tied up through medium term. So, effectively 2,500 is completely merchant.

Thank you. The next question is from the line of Sumit Khimani from Subij Enterprise. Please go ahead.

My question is about how do you see the political risk affecting to our Company, say for example, the Bangladesh situation is there, and another is the Indian political that every second day blame on the Company for doing some wrongs?

I think this call is on our performance and lets us focus the discussion on the numbers and Adani Power’s operations. As far as Bangladesh is concerned, we have a legally binding PPA with them , which is backed by the sovereign guarantee. So, we say we are fully secured as far as our supplying power to Bangladesh is concernedand beyond that, we would not like to comment.

Thank you. Ladies and gentlemen as there are no further questions from the participants, I would now hand the conference back to the management for their closing remarks. Thank you and over to you, sir.

Thank you so much to all the participants for your time and it was really great interacting with you. It is after a long gap that we are having this interaction with you, and we are happy to provide any information which you may require. You can get in touch with Nishit Dave who is our Head of IR, and we will be very happy to clarify or answer any of the queries which you may have. Thank you so very much. Thank you.

Thank you very much. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes today's call. Thank you all for joining us and you may now disconnect your lines.