Adani Green Energy Limited (ADANIGREEN) Earnings Call Transcript & Summary

Thanks, everyone, for joining the call at this time. On behalf of all the banks and AGEL, we welcome you to the Adani Green Energy results update. From the company, we have Mr. Phuntsok Wangyal, CFO; and Mr. Viral Raval, Head, Investor Relations. Before I hand it over to Mr. Wangyal, I just want to reiterate that we will have Q&A after the opening remarks by the management. I would request all investors to pose any questions that they have on the Adani Green operations and the results that have come out. If there are any questions which are related to the group, or any other questions related to another entities, please feel free to share those separately with the respective bank sales team. With that, I'll hand it over to Mr. Phuntsok Wangyal.

Good morning, good afternoon, good evening. Thank you for -- the banking group for organizing this, and thank you to all the investors for joining this call. So what I will do is, I will give a quick update in terms of our performance for 9 months ended December '23. Then post that, we can go for the Q&A. Just to start, what I thought is, okay, just to give update in terms of capacity. As we know, by December end now, Adani Green, as we stand, we have a legally declared COD of 7.3 gigawatts, over and above that, as we have spoken last time, actually. We also have a partial commission capacity of around 831 megawatts. So what effectively we means is, today, with a combination of commission and partial commission capacity, we stand at 8.1 gigawatt. And looking at the way our construction is going on, by the end of this financial year, by March end, we should be ending at 8.3 gigawatt, if not more. Now, what it effectively means is, okay, we'll be doing this during this period actually. From Adani Green perspective, what we did was, we commissioned the largest hybrid project in India, which is a 1.44 gigawatt actually. That's first thing on the capacity side. Now, from operational performance perspective, operational performance remains robust during this period. From a solar portfolio perspective, on a year-on-year basis, what you will see is our CUF plant growth factor has increased by 140 basis point actually. So solar CUF today stands at 24%. This is basically a reflection of high plant availability, which we have managed to achieve, better grid availability, better PR ratio, as well as the integration of SB Energy portfolio during this period. During the same period, okay, as far as wind CUF is concerned, wind CUF was marginally lower by 300 basis point, and this was largely on account of one of force majeure event of nonavailability of transmission infrastructure for 150 megawatt plant in the state of Gujarat. During the same period, you will notice that our hybrid portfolio has got a very robust CUF of 34% actually. This year, itself reflects why Government of India as well as many of the off-takers today are moving from hybrid type of user solution rather than a play in, let's say, on the solar wind solution. This effectively means that during the same period from a power supply perspective, our revenue has increased by more than 39% actually. And during the same period, we have sold at least 3.8 million carbon credits actually, which effectively has generated INR 153 crores of revenue, on the top of revenue from our supply. That's one thing. Another thing which I thought of highlighting is, okay -- is on account of the partial commission capacity, which I have already talked about. So during the same period, effectively, we have in-firm revenue of INR 1,645 crores. This is over and above the revenue from power supply, which you would have noticed in our audit accounts. During the same period -- even from a regulatory front has been very favorable. We got a favorable order from APTEL, which is a power regulatory body in India, for our Tamil Nadu projects actually. What it effectively means is, okay, we will be able to dispatch the power at a much higher tariff compared to what we were doing now, which effectively means that we will be having a one-time revenue upside of at least INR 570 crores. Just as a matter of information, this is not yet accounted in the results which we have declared, and this also will lead to an annual recurring positive income of at least INR 90 crores. Okay. So this is from operational and regulatory front. Now from our credit update. with the perspective, as you know, a large part of our fleet, at least 89% of our fleet. The counterparties are largely sovereign and sovereign equivalent. This clearly shows that, okay, from a revenue receivable perspective, we stand at a very good state. Even from a rating perspective, if you see our -- the liability profile, which we have, at least 97% of our facilities are between A to AAA equivalent credit rating scale, okay. So effectively, we have got a very robust portfolio growth, excellent operational performance and from a liability profile which is at a very good rated scale. That's the third point. Now, from ESG perspective, what we also thought of highlighting is, okay, ESG remains a very important pillar for the entire group, and that is also from AGL perspective, AGL has got a green financing framework, which is basically in line with globally accepted principle as well as the disclosure standard, which we have voluntarily adopted. During this period, actually, especially for a Q3 period, what you would have noticed is, AGL's entire operating capacity is now 0 waste to landfill certified, and we are very proud to achieve that during this period per se. Apart from that, we also received Leadership Award at Sustainability. This is jointly by Frost & Sullivan and Energy and Research Institute. So effectively, our ESG commitment, which we have voluntarily adopted in line with global principles, publicly disclosed are getting recognized at multiple forums. So in conclusion, what I would like to state is, okay, from AGL perspective, we are making very steady progress in terms of providing affordable clean energy in a sustainable basis, and we are effectively today on track to achieve our long-term renewable capacity addition targets in a sustainable and prudent manner. So I will leave my opening remarks. I conclude my opening remarks now. We can take it forward.

[Operator Instructions] Our first question comes from Eric Liu from Nomura.

I think I have 2 questions at the moment. I think, first of all, I joined last session of the Adani Group. So regarding the financing plan about the HoldCo bond, if I recall it correctly, so you mentioned that the 2 financing plan will be ready around May, June this year, and then 100% cash banking facility will come by the end of June. So I would like to have more detail about how the current stage of refinancing? And who are these, kind of, lender that giving use of refinancing?

I think in the previous call, what we -- what was clarified was, okay, within a year, much before the year of the legal maturity of the HoldCo bond. What we will be -- effectively be having is the underwritten commitments to cash back commitment actually, to pay out the entire HoldCo facility at the point of its legal maturity. So at this juncture, we are in the process of putting in place maybe those facilities actually. And as it was communicated in the previous call, by the time annual results are declared, that is maybe --towards maybe Q1 of next financial year, we will make the necessary disclosure about what exactly is this underwriting commitments, [ store to the ] cashback facility.

And you'd give -- let's say, put a percentage of our completion for this kind of progress, how -- what certain level of milestone you will consider right now you have achieved?

No. I didn't get it. Can you just ask again?

Sure. I think my question being asked is that, I would like to know about how the current stage like in terms of milestone of this refinancing? As you mentioned first quarter next fiscal year, you probably will give some update about how the current stage that -- in terms of maybe some kind of a percentage completion or something like that?

So this is a work in progress actually. But what Eric [ maybe ]we can assure you is, we are more than confident that by the timelines, which we talked about, when we make the disclosure, that disclosure will make it absolutely clear that this is the underwritten commitment, which will ensure that by September 24 when this HoldCo maturity comes up, we'll be taken out.

I think last call will be also saying that the group is actually looking for cutting the CapEx. If I recall it correctly, in the last Adani Green Equity call, you guided the CapEx for fiscal '24, '25, probably around INR 100 billion. It was the combination of committed and discretionary CapEx. So would you mind to give us a split in between so-called committed and discretionary? Do you see any headroom of cutting this CapEx?

Yes. So, as we talked in the last equity earnings calls actually, so this is a tentative CapEx number which has been talked about, which is still under review actually. But what I can say is the larger part of this capacity can be in the form of discretionary CapEx actually.

Our next question comes from Pradeep Melchis from BFAM Partners.

I just had a couple of follow-up questions. I guess, the first one is in terms of the capacity and also the expected run rate EBITDA, and I [ hope] by the end of this fiscal, we are looking at about 8.2, 8.3 gigawatts. What kind of run rate EBITDA would we look at -- the installed capacity for fiscal year '24? And [ do you have ]any broad level expectations or guidance that you can give us on -- in terms of the free cash flow that the business can generate as its capacity over the next fiscal?

So as I mentioned in my opening remarks, actually, so sitting today, along with our partial commission capacity, we have the standard around 8.1 gigawatt actually. And by the end of this financial year, we are confident of achieving 8.3 gigawatts. What it effectively means is, okay, we are sitting today, commission and partial commission capacity, run rate EBITDA should be around INR 7,380 crores, and if we add the incremental capacity, which will be added during the next 1.5 months, what we should be having is around INR 7,450 crores of run rate EBITDA.

And just in terms of free cash flow, just trying to understand maybe [ gobbling ] the context of your debt maturities and the refinancing plans. Give guidance in terms of what kind of free cash flow you're expecting to generate next year?

Yes. So in next year -- if you would have seen our earnings presentation, actually, frankly speaking, is okay, all the repayment profiles are fairly amortizing repayment profile. So from that perspective, actually, the first leg of bullet repayment is basically the HoldCo bond about -- which we talked about. Now what it effectively means is okay, even looking at around 8.1 gigawatt of current operational portfolio, which we talked about -- So we are looking at free cash flow to equity of -- between INR 1,600 crores to INR 1,800 crores. This is what we are looking at right now. And this is also fairly slightly on the conservative side, actually, but we do believe that this should be in that range.

I guess the last question is -- and I'll go back to the queue. Just on this thought process for using your debt maturities in the next calendar year, obviously, I think for the RG1 is probably looking at a longer-term financing, given that there are operational assets. And can you -- just from a thought process point of view, how are we looking at refinancing bond -- the HoldCo bonds? I mean, given that there are no direct access to cash flow and underlying assets are in different SUVs, and different vehicles. Can you just give us some broad guidance in terms of the direction that you guys are thinking and if it is going to be an equity reuse or looking at some monetization of underlying assets, jut for us to kind of try and understand what direction you guys are working on.

So Pradeep, actually, as far as RG1 bonds are concerned, okay, this will definitely be refiled through a longer [ tenor ] amortizing profile. As was mentioned in the previous call, what effectively we are looking at is around 15-year type of instrument, actually, as far as RG1 bonds are concerned. As far as HoldCo bonds are concerned, I think the thought process is to have a legal maturity, which is more sustainable in nature. But what will be more prudent is, okay, once it is firmed up actually, then we should be in a position to talk more in detail. But effectively, the legal maturity for Holdco bond will be more sustainable in nature.

Our next question is from Jayadev Mishra from J. Safra Sarasin.

So my question is more on the sustainability side. So we are very, very strongly focused investor and that credibility has been brought into question, not only on the debt side, which are presenting, but also on the equity side. So my question to you is, please bear in mind that you also need to engage different sustainability counterparts such as, let's say, MSCI or Sustainalytics. Just to make sure that they get your long-term messaging, right? Because without that -- also, we are a bit concerned that we may lose some of the fundamental support from the industry on the sustainability perspective. So that's one. And second is probably on a little bit on the governance front. I read the news about Grant Thornton audit. So is that all covering running, green as an entity and what sort of mindset do you have or what do you want to achieve? Is it purely a communication perspective or what do you want to achieve out of it is the next question.

So Jayadev, I think what I will suggest is -- as far as any query, which is broadly been linked to issues at the group level, actually, I think it will be advisable that you refer those questions to the banking group and group will respond accordingly. Now purely from an ESG perspective, as you know, as I have also talked in my opening remark, actually, AGL continues to remain extremely focused on ESG side, on all 3 parameters actually. And if you would have seen the presentation which we have on the release, you will see that okay, during the same period, we continue to remain recognized on various fronts actually. And in the previous call also, which Robbie talked about, that engagements are at various levels, actually and including the stakeholders who are from an ESG perspective. So from ESG side, Jayadev, okay, as far as the AGEL is concerned -- and I can say that it's about Adani Group companies itself, remains a very important area of focus. And you will not find any issue per se on that. As far as the other question is concerned, I think you can refer that to the banking group and then accordingly, group will respond.

Our next question is from Anton Kerkenezov from Pictet.

2 questions. You've got INR 400 million of short-term debt coming up. How do you plan to address that? And then the second question is, how do you refi the construction loans once the projects are operational?

I think if you're referring to short-term loans pertaining to our non-fund-based facilities actually, those are taken out through the project finance facilities, which are already committed. I guess you are referring to that short-term facility. Anton?

Yes.

So that's the first thing, actually. Now from a refi perspective, I think you need to understand that our -- as far as our financing base is concerned, actually, it's a combination of domestic process as well as the construction facility actually. And as far as domestic sources are concerned, these are fairly long tenure facility, I mean 20 to 22 years. So from that perspective, there is no refinancing or the need actually. A larger part of our portfolio is anyway tied up through long tenure facilities. Now in terms of near term, the refinancing, as far as next financial year is concerned, as I briefly talked in between, there is no refinancing requirement actually. Post that, that will be largely in the form of HoldCo bond as well as RG1 bond, about which I think we have already given a guidance that we will be having uncertain commitment for those in place within next quarter itself.

Sorry, just to add to that. I think -- Anupam here…

Sorry go ahead.

On the construction facility -- yes, taking out of the construction facilities, which will come due in '25 and '26, it will -- we will be continuing to issue bonds like RG1 like RG2, which are 20-year bonds, which are going to be fully amortizing with no refinancing risk, more [ vehicles ]. So that is only the plan on the construction facility.

Just to add, actually, as we said, when we come out with our firm plans for RG1 takeout, that will make it absolutely clear that the -- even the construction facilities, which have come up for refi in '25, '26 will also be refied through a similar type of instrument. Albeit may be for a slightly longer actually.

And if I could just sneak in one final question. You detailed obviously the potential capacity additions that you're going to be making this year. Are you disclosing the potential incremental EBITDA improvement as well?

Yes. So our guidance was limited to this financial year, actually, 8.3 gigawatt now, which we talked about.

Our next question comes from Love Sharma from Lombard Odier.

I just have 2 follow-up to get some details. So first one, I think what Robbie mentioned on the previous call about the underwriting for the 2024 bonds. Can you just elaborate a bit more? Do we expect some kind of a letter of credit, some kind of a cash collateral to be placed by June 30th to take care of these HoldCo 24 bonds? That's the first question.

I love actually. As Robbie clarified, okay. So these commitments which will be in place by Q1 will be in-firm underwritten commitment in nature actually. So from that market perspective, that makes it absolutely clear.

So can I just ask like is the underwriting commitment is supposed to be from the group or from any external party like maybe a bank or something of that stuff? Just to get a sense. I mean we're not asking about the amount etcetera and all that, but just to get a sense the underwritten commitment is coming from there?

Yes. So I think as the scope actually, this is a work in progress. But what I can definitely assure is by Q1, actually, we -- when we come back to the investor base, what we will be having is a firm underwriting commitment actually. What it ensures is at September 24, when the HoldCo bond comes for maturity, we will be able to draw under the firm underwriting commitments and take out the HoldCo bond.

So that sounds like -- more like a bank facility, which you will be able to -- which you will be committing to, is that right?

I think, Love, at this juncture -- beyond that, it may not be advisable because it's a work in progress actually.

I had another question. I think secondly was mainly related to the construction facility which you have. And I believe there is a step-up clauses there, right? Can you just indicate what kind of pricing you have now? And what kind of escalation clauses you have there? And I believe you said the maturity of that facility in 2025, if I am not wrong?

Yes. So I think the clauses are more typical in nature actually. So what effectively we are saying is, okay, these construction facility needs to be taken out in '25, '26 actually. And that's the time period for firm takeout and -- which we will do, and the takeout will be similar to what we will be doing for RG1 takeout [ factories ] . So from that perspective, as far as takeout is concerned, that has been a [ pressure ].

And can you indicate what kind of pricing you are bearing on that now and the quantum of that outstanding? I think if you could just give some ballpark numbers, will do also.

What we can say is, okay, for these construction facility, right now on a fully hedged basis. we have drawn this under multiple tranches actually. Should be nearer to around 9.4%, fully hedged facility.

And the quantum currently outstanding and how much of capacity you have left, could you just indicate that as well?

Quantum, if we add both the first construction and second construction, we are talking about around -- just 1 second. I think you are asking the entire construction facility which we have drawn. So if we add both of them, we are talking about around yes, USD 1.64 billion.

So that's fully utilized then I guess?

Yes, that's fully utilized actually and capacity is also commissioned. And I'm doing exceptionally well. If you recollect in the beginning, in my opening remarks, I talked about 34% [ senior ] for our hybrid portfolio actually. Now this entire construction facility has been used to finance our hybrid portfolio, which is doing exceptionally well, right now.

And this is the last question. I think for the CapEx plan, for next year INR 10,000-odd crores, how is that going to be funded? And I believe, I mean, if you look at the cash balance, which has been disclosed, let's say, around INR 2,000 crores, INR 3,000 odd crores, if I remember. How is -- what is the plan to fund this CapEx through debt, equity, internal cash, if you could just break it down?

So I think the CapEx which we are talking about is -- as we said, is still under review actually. But a larger part of this CapEx still remains discretionary CapEx. Now from that perspective, actually, if you leave aside the discretionary CapEx, from a funding perspective, a large part of that is already increased long-tenure [ PF ] facility.

So sorry, just to confirm. So when you say long-term [ facility ], that's not the construction facility, I believe, right. That -- there is -- you mean another domestic bank supported facility, which is in place for this -- for the CapEx plan?

Yes. So Love, as I said, we have got a diversified funding base actually. Construction facility is a one facet of it, but our relationship with domestic institutions, specialized institutions who are very active in project finance, they still remains very intact actually.

So maybe if I could ask it another way. Let's say if you have to commit to a CapEx plan based on the current availability of [ facility ] from domestic lenders, et cetera, what would that number be in terms of CapEx for the entire next year? Let's say, you assume no new facilities for construction, et cetera, and whatever you already have committed, you already have received commitments for - If you just go with that, how much of the CapEx would you actually spend based on that?

So I think Love, what we need to understand is, okay, our limits with domestic facility is pretty intact actually. And just to put a perspective, for example, the non-fund-based limit, which I talked about. And the -- as you know, as far as non-fund-based facility is concerned, in the past we have talked about, we have got around INR 89 billion of non-fund-based facilities, out of which around INR 60 billion is still underutilized. Apart from that other specialized financial institutions commitment are still undrawn. So if the theory is from a perspective that, okay, the CapEx, which we finally crystallize for next financial year, whether domestic institutions will be sufficient to support them, I can say with conviction as they are more than -- they have their capabilities and undrawn limits are more than sufficient to support it. But as I said in the beginning, actually, CapEx for next year is still a work in progress.

Maybe I'll follow up later. My query is more about -- even if let's say, you don't get anything in terms of new facilities, what would be the bear minimum CapEx supply? I'm happy to call up later.

Our next question comes from Imtiaz Shefuddin from Barclays.

I just want to again try to get some information on something that Robbie mentioned on the earlier call with regards to how you're going to take out the RG issue 24 bond. He mentioned 15-year amortizing, which will be privately placed. I know you have answered some earlier questions on this, but can you just please provide some details with regards to what do you mean by privately place? And when do you expect this to be done?

As we said in the beginning, actually, it's -- we will be giving final details about this underwritten commitment by Q1 of next financial year. And that's the time line which we are talking about. Robbie also talked about the broad amortizing profile actually. 15 years is around that level. They may be was, okay, 1 or 2 years here and there, but that's the level which we are that's the amortizing profile which we are talking about.

In terms of size, are we looking at INR 1 billion, INR 1.5 billion? Because that was what was earlier reported. So can you either confirm or deny or -- on the size of the potential issue?

No. What I can say is, RG1 is basically USD 462 million, okay? So that's the amount of outstanding debt under IG1, which we plan to refile through this amortizing issuance.

Our next question comes from Parth Jhala, Goldman Sachs.

I wanted to check on the gross debt number as of December 2022. And I wanted to check if this includes any under construction debt, basically. for any capacity outside of the 8.3 gigawatt, which we are using for run rate EBITDA?

Yes. So, Parth, actually, the gross debt number, which is there includes all the debt outstanding actually, including the under construction project. And the gross debt number for December end is INR 47,890 crores actually, which includes -- and okay -- and from a net debt perspective, this will be INR 41,522 crores.

And this includes -- so there is no CapEx, which has been undertaken where you've taken on some debt, but -- which is outside of this 8.3 gigawatts. So basically, starting April, you'll be literally taking in fresh CapEx starting 8.3 gigawatt, right, or at least on the debt side?

No. So I think there are -- for example, there are 1 or 2 under construction projects actually, which are right now in advanced stage of completion level. Those will not be a part -- those are not a part of 8.3 gigawatts. Those will get commissioned next year actually. The debt of those under construction projects are a part of the number, which we just spoke about.

Secondly, I just wanted to check on the commitment and the discretionary CapEx that you mentioned for next year, the INR 100 billion. So you said some of this is discretionary. Now I just want to understand how this works because you would have signed some PPAs which would have some CODs in the contract. So those would not be discretionary from your perspective, right? So what would that amount be from a CapEx perspective, which you are basically locked in for in FY '24 and maybe the remaining would be discretionary, but just want to understand how much would be sort of locked in and how much would be discretionary. And if like a lot of it is discretionary, then just want to understand what mechanisms in the sort of PPA allow that to be discretionary? Because typically, we've seen some of these to have like a scheduled commission data, et cetera. So just some color on that would be helpful.

Yes, sure. So what I can say is the large part of this is discretionary CapEx, actually. And to your second question of, okay, what exactly discretionary CapEx, means. So when you signed a PPA actually, there are obligations on our side. There are obligations which a DISCOM is also supposed to perform actually. And one of the important elements of obligations on the DISCOM side is to have the entire transmission network to transmit the power from my plant to the ultimate beneficiaries. Now effectively, our approach has always been that, to ensure that my plant is connected to the nearest substation. And as you know, from the nearest substation to the ultimate beneficiary area, that is the responsibility of the offtaker. Now effectively, what is happening is, many of the projects actually, as far as the transmission network for the ultimate beneficiary is concerned, those are running behind one schedule. So from our perspective, we have the ability, actually. What we can do is, okay, we can spend the CapEx, commission our project, connect it to the nearest substation and sell in in-firm markets. In the beginning, during my opening remarks, I talked about INR 1,645 crores of in-firm revenue, which we have generated it. So that's what it is. So discretion is our end to ensure that, okay, either I do the CapEx, connect it to nearest substation, sell it in the in-firm market till the time the transmission evacuation ecosystem to be developed by ultimate beneficiaries in place. So that's how this discretionary nature of CapEx comes into play. Hope it clarifies, [ Parth ].

And just to clarify, the INR 1,645 million of in-firm revenue, is for the 9-month '23 period, right?

This is INR 1,645 crores actually, and this is for the 9-month period. So effectively, what's happening is, okay, there's partially commissioned capacity of 831 megawatts, which I talked about. It's still generating revenue actually. And -- but it's not getting reflected in my P&L. So that's why you will never see this INR 1,645 crores in my P&L.

Our next question comes from Umar Manzoor from PGIM.

Another question about the governance aspect specifically relating to the Adani Green share pledge, which I appreciate that this is beyond the scope of this immediate entity. But my question is about the fact that the pledge of the of the Adani Green shares that was reported by the SBI Cap trustee as having supported a loan to the [ coal mine ] in Australia. So effectively utilizing a green company shares to back a loan to a coal mine. Obviously, that massively impacts the impression of the sustainable rating of the company and could potentially impact Sustainalytics or whoever. So my question is, have you discussed this with any of these outside environmental rating agencies in terms of trying to mitigate the impact or potentially putting a governance structure in place to prevent this from happening in future?

I'll take that question I think we are going through that process right now as we speak. And the structure and process will be in place about this -- litigated in the future. With respect to the discussions with rating agency, is not really credit, but also the ESG-rating agencies. I think Phuntsok has already clarified, but this is an important commitment for us. We are fully committed to this. And we are continuing to engage with all of them. We've been doing it before volatility period also but even doing this. I would just say that the engagement has been heightened.

So in terms of actual sort of -- are there any changes to the governance framework that you're sort of communicating to them? Have they -- are they sort of comfortable with the changes that you're making?

So all of these, as I said, they are private discussions ongoing right now. But as I said, as and when these reports come out, we will make them public. But for us, it's been a period where it's being heightened as well as, intense learning over the past, say, 10, 15 days. But all of these mechanisms, et cetera, are fully put in place. Discussions are ongoing. We have communicated to them. And when we made the announcement, you will see for the reason. What we're going to do also is that, every [ consumer ] will have calls. And as Robbie mentioned on the earlier call that we will engage proper investor India and continue to engage a lot more. So we'll not only - will -- you'll be getting these announcements and directly from us, but also you will be hearing from us. So we will be communicating to you step by step by how all of these actions that we are taking, how they're taking [ across ].

In terms of the ESG funds and everything, it's very useful to have that information. And just I have 1 other question, which is more about the holding company -- the cash flows to the holding company. Would you -- because of the fact that there's a Total JV on one side, would it be possible to give us an estimate of what kind of cash flow you're expecting into the holding company from the Total JV and from the outside of Total JV assets in terms of dividend cash flows and holding companies so that we can sort of have an idea of how much cash flow is available for just normal debt servicing at the HoldCo over the next 12 months or the FY '24 or whatever projected period that you're using?

Yes. I think before -- while Phuntsok joined, I think he had mentioned that we are looking at a free cash flow to equity. That is after all the operating level of cash is service, operating level debt and O&M services. And on top of that, the Total JV share is paid out. I think that number we had mentioned is around INR 1,800 crores on the -- and that was on a conservative basis. So that is the [Technical Difficulty]. I think we have -- I think out of that INR 1,800 crores, around INR 600 crores, INR 700 crores would come from the Total JV and the balance would be from the other operating assets.

Yes. Sorry, apologies. We just got dropped out actually. So we are back. So I think if I recollect correctly, the last query was okay at AGL level, post the Total share actually,, what exactly will be the free cash flow. That -- I think that was the question, last time?

Yes.

So look, actually, the number which I mentioned in the beginning, okay, free cash flow actually purely from purely from 8.3 gigawatts, the number which I talked about, which was INR 1,600 crores to INR 1,800 crores actually. That was after factoring distribution to Total. So that's the number of guidance number which we are talking about now.

Okay. So the 600 to 700 is coming from the Total JV and the balance is coming from the fully owned assets, the ex-SoftBank and other assets? Is that correct?

Yes. [indiscernible] So than we had in addition to this was out of this INR 1,800 crore -- INR 1,600 crore to INR 1,800 crores, how much is your share of the Total JV and how much is the balance?

Yes, sure.. So Total share should be around 20%, 25% actually out of this -- just one second. I think I'm just...

Yes. So I think the number I gave you of INR 600 crore maybe a little inflated. That number would be probably in the range of around INR 400 crores to INR 450 crores. And then the balance here -- So then that is what is coming from the Total JV and balance from the other operating expenses.

So the INR 1,600 crores to INR 1,800 crore number was including the full INR 600 crores from the Total JV, but you're saying that 20% to 25% of that INR 600 crores would likely go to Total. Is that what you're saying?

No. What we are saying is the INR 1,600 crores to INR 1,800 crores includes around INR 400 crores to INR 450 crores, which is from the -- it is our share of the Total JV.

We have a written question from Rounak Majumdar from Bank of America. He asks, could you clarify discretionary CapEx? How could you walk away from this CapEx requirement?

No. So we are not saying that we will walk away from this CapEx requirement. What we are saying is because under our contractual document, there are obligations on both the parties actually. So my requirement to fulfill my obligation within a certain time period is dependent upon offtaker fulfilling their obligation. A large part of it is setting up the transmission network from the substation where my plant will be connected to the area where the power needs to be delivered upon. So in many of our projects, actually, what we are seeing is the transmission infrastructure is going to be delayed at the offtaker level. So from that perspective, we can defer the CapEx one. And that is what we are seeing as discretionary CapEx. Ronak, I hope it clarifies it.

We have another question, who asks any plan to buy back the bonds, especially the September 2024 bonds since it is trading at deep discounts?

From my perspective, we have already clarified. Yes, Anupam you want to take it?

Yes. Just to clarify, this September 2024 bonds as per RBI regulations we cannot buyback because it's still a maturity bond and it needs to be ensured that 3 [ year ] maturities cannot be bought back. So therefore, it is not possible to do a buyback regulatory. But we have already clarified the plan that we have on that bond. And there are no plans to buy back either the RG1 or the RG2 bonds. They are still flexing long-term structures. RG1 will be utilized and RG2 will not be touched . It will remain as is.

Another question asked regarding the Solar CUF improvement, could you be more granular of that improvement between RGI, RG2 and other assets?

Yes. So these are anyway disclosed as a part of our compliance satisfaction on a half yearly basis actually. If any further information is required, we shall be like happy to provide a separate team.

The next question asks, can you discuss the progress of refinancing the RG1 HoldCo bonds? Is the placement of the 15-year instrument completed? Or can you give some more color on the progress of having the facility completion?

As we said, actually, so we will be having a firm commitment in place by Q1 of next financial year, actually. So it's a work in progress, but we are fairly confident that by the time Q1 -- by the time our annual result is declared, we will be having a firm commitment in place by the time.

Another question asks how much CapEx remains to put the 8.1 GW operational by March 2023?

A large part of this is already incurred actually. If you really want to look at it, what we are seeing is between INR 650 crores to INR 700 crores, that's the amount of CapEx, which we are talking about. Because these portfolios, as I said, out of this 8.1 gigawatt -- 8.1 gigawatt is actually operational. It is basically for the balance 200 megawatts, which I said we'll get -- which is likely to add to this 8.1 gigawatts, that is where the balance CapEx will be on.

Our next question comes from Luke Chua from Pictet.

Could I just - since a lot of the questions have been answered. Could I just check that in the most recent presentations, too, do you still have a target of 45 gigawatts of capacity by 2030? Can we achieve the 28 gigawatts to locate growth in the next few years as well? So -- and these contingent and it seems to me if they are on getting CapEx. So if you do have CapEx being defined as discretionary, I know, which is not dependent on the offtaker. How much of this growth in the capacity is not right now in place? Maybe I should ask it the other way around. And very good results again and also to your colleague, Mr. Robbie Singh earlier.

Luke, as you said, okay, the CapEx numbers are still under review actually. And so effectively, what it means is, okay, when the capacity is also getting reviewed intrinsically as a part of the CapEx review. Once that is going to be firmed up, I think we should be in a better position to comment on 8 months.

So can you just clarify that? [Technical Difficulty]

I'll add to that. Yes. What Phuntsok mentioned on the CapEx, I think the near-term CapEx numbers are something that we are working on the next 12 to 18 months, The longer-term target remains the longer-term targets. There have been no changes to the longer-term target. We continue to maintain that with respect to 2030, we are looking to add 45-gigawatt renewable capacity. That means that is our commitment with respect to renewable power capacity addition in India as well as 0 in our portfolio. With respect to the funding mix and the funding news of that, it will be largely a lot more equity funded and the proportion of debt will go down. And in the near term, there will be a slowdown in the target, and that is what is mentioned in the sense that we go to revisit our discretionary CapEx and reduce our CapEx in the near term, but in the next 12 to 18 months. So that is the guidance that I can give you. And right now, there is absolutely no rethink on the 45 gigawatt by 2040 .

I look forward to further guidance on your ambition today.

Our next question comes from Manik Gupta from Broad Peak.

The first question is you mentioned you have $462 million on the RG1 box. Our understanding is $500 million. What am I missing? What's the mismatch that you bought back from?

Sorry, it's $500 million I think there was some confusion in any $500 million -- $500 million I think we had we were talking about the number net of [indiscernible] and therefore, the 460 numbers came, but the number is $500 million.

The second question is more kind of a description request. Can you just describe other than the 2 RG's that sit under the Total JV, can you describe how much is the other capacity? Is it all operating? How much debt is against it and how much EBITDA does we generate?

So as we said right now, the operational capacity, including part commission is 8.1 gigawatt actually. And under the Total JV -- Hello?

Yes.

Yes, sorry, I meant of the Total JV. Yes. So under Total JV, we had around 2.3 gigawatt actually. And for that, a 2.3 gigawatt, the debt is - just one sec-- I just need to cross check my numbers actually, but Manik, I will get back to you with the exact details on it.

Sure. I'll connect you separately.

Our next question comes from Imtiaz Shefuddin from Barclays.

Just one more question seeking clarification on your gross debt number. If I look at your credit note that was presented a couple of days ago, the debt maturity profile for Adani Green Energy totals up to something like INR 437.6 billion. The gross number that was mentioned earlier on this call was slightly different. Can you just help clarify these numbers?

So gross back number, which we talked actually is INR 47,890 crores actually. And this also includes some of the trade credit instruments which we have, which is basically INR 1,657 million. So it is inclusive of the trade credit numbers. Just to clarify, this is December end number.

Yes. So your credit note also had the December end number for the debt maturity profile and that total up to INR 437.6 billion. So now you mentioned that your gross debt number is INR 478.9 billion and that includes your trade credits. Can you just repeat how much is your trade credit numbers?

INR 1,657 million, and just to clarify, actually, you also need to take into account the cash and bank balance, which we have is INR 4,711 . My sense is if you add 47,890 minus 4711, [ 43,179 ].

Sorry, this is a gross debt number in your debt maturity profile. Why would your cash balance matter in this debt maturity profile?

So what we will do is we will just -- we will get back to you separately on this actually -- but maybe... Yes.

I think the difference will be the Total instruments, they may be counted as in one other and not in other. But we will just clarify this separately over email.

Yes, sure.

The second thing is, if you add everything it is only till FY '45, some of the maturities beyond 2045 because what we've assumed here is that the construction facility is not shown as due in - you see the footnote, the construction facility is not shown as due in FY '25 and '26. It is assumed to be refinanced in the tail period of 5 years. So therefore, you will see that some of it would just push beyond 2045 as well.

We have a written question from Kevin Collins from Pacific Life, he asks regarding the private placement plan at Ad Greg, will this be underwritten by banks? Will the deal be broadly distributed or are you approaching key financing partners?

It will not be under -- it will be. Yes. So I'll just take this. It will not be underwritten by bank. It will be an approach to our key partners. And in addition to that, we will look to do -- the first 2 days that we do, we'll try to do with most of the relationship investors and then try to broad base this product. We eventually want to have a very broad-based -- like we have in the [ 144 ], as we have been able to reach out to a larger base of [ guided ] placement, investors and we focused on U.S., and then again, looking at other parts of the world as well. So that's the next 3 to 4-year plan for us. So first 2 deals will be more chunky and by few investments and then going after that will be widely distributed.

Our next written question is from Taeho Lee from MetLife, who asks a fully expected financing for the future maturities, how much high interest should investors expect? Is there any change in the longer-term capacity target in light of the group's efforts in cutting CapEx?

So I think what we can say is, okay, we don't expect the interest rate to be higher compared to what we have in the secured one of recently. If you even see in the domestic market, actually, domestic market, you will see that the interest rate, which many of these specialized financial institutions are offering are broadly in line with the average interest rate market, which we have. So on a broader basis, we don't expect any increase in interest rates from the incremental CapEx, which will come up in near term.

Our final text question is from Matthias Penz from Helaba Invest who asks, with the end of this financial year, almost 6 GW operational assets will be outside of the Total JV RGs. Is there a plan to add additional assets to the JV with Total will create additional RG's which issue their own bonds?

Yes. So Total JV right now 2 gigawatt a...

I'll...

Yes, okay Anupam.

Yes. So I'll take that question. Yes, the Total JV is going to a close-ended JV with 2.2 gigawatts. There are no further conversation right now for dropping any further access into that platform. With respect to the additional assets which are sitting under Adani Green, if the future issuances on the mall side will be exactly replicating RG2, which is there will be 20 to 22 years amortizing bonds with no rate risk, no re-financeable risk, and there will be a structure which will be -- we'll pull the assets together in a structure, which will have at least 75% to 80% coming from sovereign equivalent counterparty and the balance from non-sovereign equivalent or merchant projects. So that is the combination that will be there for our portfolio going forward from the bond perspective.

Thank you. That is now the end of the Q&A session. So I'll now hand you back over to the management team for closing remarks.

Yes. So I think thank you to the bankers group. Thank you to investors for the call. In case you have got any one of your further queries, you can either approach the banking group or Viral who is there on the call. Maybe you can approach us, we will be happy to respond to any further queries. And thank you for continuously supporting the group [ per se ].Thank you. Thanks a lot.

Thanks a lot. Goodbye.