JSW Energy Limited (533148) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the JSW Energy Limited Q1 FY '27 Earnings Conference Call hosted by JM Financial Institutional Securities Limited. [Operator Instructions] I now hand the conference over to Mr. Sudhanshu Bansal from JM Financial Institutional Securities. Thank you, and over to you, sir.

Thank you, Ray. Hello, everyone. On behalf of JM Financial, I welcome you all to the 1Q FY '27 earnings call of JSW Energy. For today's call, we have with us the leadership team of the company, led by Sharad Mahendra, sir, Joint MD and CEO; Mr. Chandrasekaran Prabhakaran, sir, CFO; and Mr. Bikash Chowdhury, Head, Investor Relations and ERM, along with the other team members. Now I will hand over the call to Sharad sir for his opening remarks, after which we will open the floor for Q&A session. Thank you so much, sir, for your kind presence and giving us the opportunity to host the call. Over to you, sir.

Thank you, Sudhanshu. Good afternoon, everyone, and thank you for joining us today for JSW Energy's Q1 FY '27 Earnings Call. I hope you and your families are keeping well. We have started FY '27 on an exceptionally strong note, and I'm delighted to share some key highlights. Q1 FY '27 has been a landmark quarter for JSW Energy. We delivered one of the largest single quarter capacity additions in our history and among the highest in the sector, adding 873 megawatts during the quarter, taking cumulative capacity additions to almost 1.1 gigawatts till date if we add the capacity added during the month of July till date. Of this 150 megawatt was driven by early commissioning of Tidong Hydro originally scheduled for October '26, which contributed also an incremental EBITDA of INR 20 crores to INR 22 crores in quarter 1 itself and will allow us to capture the ongoing hydrology season acquired only in January 2026, this pace of commissioning is a testament to the integration capabilities and execution capabilities of our teams in this project. This momentum has carried firmly in quarter 2 also. And in July till date, as I stated earlier, we have already added about 225 megawatts of organic renewable energy capacity and thus taking our capacity additions since April '26 till date to approximately 1.1 gigawatt, as I said earlier. For further details, please you may refer to Slide #7 of our results presentation. We remain firmly on track to deliver our FY '27 annual target of 3 gigawatt capacity addition and INR 20,000 crores of CapEx, having already achieved close to 36% of the FY '27 capacity guidance and surpassed about 87% of the total capacity added in all of FY '26. You may refer to Slide 21 for this. Another significant milestone in our journey was the deleveraging achieved through the successful execution of INR 10,150 crores capital raise in the recent past, the largest growth capital raise in the Indian power sector. This was accomplished by a combination of strategies, reflecting strong market confidence in JSW Energy's growth story. This comprised of 3 components: first, a preferential allotment to promoters of INR 3,000 crores, of which INR 1,125 crores has already been received with the balance to come in before June 2027. Second, a partial stake sale in JSW Steel, monetizing 2.5 crores shares out of our total INR 7 crore shareholding, worth INR 3,150 crores and third, a QIP of INR 4,000 crores anchored by marquee global and domestic institutional investors. Together, this gives us an ample liquidity cushion of about INR 12,880 crores in cash balances, comfortably funding the equity portion of our estimated INR 20,000 crores FY '26 CapEx -- FY '27 CapEx, sorry, and 2030 growth plans with headroom for future growth. Our balance sheet discipline continues to strengthen with net operating leverage on a trailing 12-month basis improving to 4.95 from approximately 5.2 in FY '26, even as we scale up our growth investments. By 2030, we are committed to have our net leverage below 5x. Further, I'm also pleased to share that as a reflection of our strong green focus and long-term commitment to carbon neutrality, our expanding renewable portfolio enabled us to avoid approximately 16 million to 7 million tonnes of CO2 emission in fiscal '26 and about 4.5 million tonnes in quarter 1 of FY '27. This is based on the prevailing Indian grid emission factor. Now before I get into our detailed quarter 1 performance, let me share a few sector observations. India's power sector delivered a strong start to FY '27 with quarter 1 demand growing 8.5% year-on-year, a sharp turnaround from the muted 0.9% growth in FY '26. This was -- this strength was broad-based, driven primarily by prolonged heat wave conditions, delayed monsoon progression and higher cooling appliance uses pushing up the residential and commercial consumption. This momentum has been carried into July as well with the month till date demand growth in July being as robust at almost 12%. Peak power demand touched 271 gigawatt in May, already surpassing FY '26 full year peak of 245 gigawatt. Again, on July 16, we saw another peak of 270 gigawatts and demand is expected to touch 300 gigawatts in the near term. We view this as early validation of the medium-term structural story we have consistently articulated India's industrialization, urbanization and rising per capita consumption underpin a clear 5% to 6% long-term CAGR in power demand. Additionally, the ongoing crisis in West Asia underscores the strategic importance of India's energy self-sufficiency agenda under [indiscernible], further strengthening the case for accelerated electrification and sustained long-term demand growth. India's growing global economic structure contributing approximately 8% of the world GDP on a PBP adjusted basis, coupled with its continued high GDP growth outlook should support sustained power demand growth. On the merchant market, this improving demand backdrop is now clearly visible. Day ahead market prices, which averaged around INR 3.86 per unit through FY '26 on muted demand have formed meaningfully in quarter 1 of FY '27, rising to INR 5.10 per unit from about INR 4.40 per unit in quarter 1 of FY '26, a nearly 16% year-on-year increase. Against this improving landscape, let me take you through our performance for the quarter. With the sizable capacity that we added, our total installed capacity now stands at about 14.6 gigawatt with renewables constituting around 61% complemented by 5.7 gigawatt of thermal capacity providing reliable dispatchable baseload. This balanced mix remains central to our strategy, participating meaningfully in India's clean energy transition while ensuring grid reliability through firm contracted thermal capacity. On the organic front, we continue to evaluate selective value-accretive acquisition opportunities that complement our strategic priorities and strengthen our growth platform. Accordingly, we signed a definitive agreement to acquire Maruti Clean Coal and Power Limited, which operates a 300-megawatt thermal plant in [indiscernible]. The plant has a long-term power purchase agreement of 195 megawatts net with Rajasthan Discoms with a residual PPA life of 14 years. In addition, the plant provides 5% power at variable cost to [indiscernible]. While the balance 64-megawatt is sold in the merchant market, the coal is secured through a long-term fuel supply agreement with SECL and [indiscernible] Maruti Clean Coal & Power Limited which order on our organic thermal growth, please refer to Slide 22. Our first Salboni plant has received all key clearances. 100% of land has been acquired equipment orders are placed and the site work is now in full swing. On the KSK brownfield expansion, land, bottle, rail, transmission infrastructure and environmental clearances are already in place. Coming to vertical integration, a priority we have spoken about consistently on the thermal side, we increased our stake in Toshiba JSW Power Systems joint venture to 10.7% from 2.4 earlier. This is aimed at derisking our equipment supply chain and building thermal capacity at one of the lowest capital cost in the industry. Combined with our ongoing acquisition of gas boiler business, we took to complete in this quarter, we have now fully derisked our FML growth ambitions, giving us full control over our build-out for both our current projects and future opportunities. On the wind side, we commissioned our wind blade manufacturing facility at Halol, Gujarat on 8th of June, with an annual capacity of 450 blades sufficient to support approximately 600 megawatts per annum of wind installations is strengthening backward integration in the segment and supporting a lower LCOE. The second blade manufacturing facility at Chitradurga in Karnataka is expected to be commissioned in our NPS, which was currently at an advanced stage. On the 5 gigawatt, our battery plant, which we have commissioned in quarter 4 of FY '26, we have received our first large external order of INR 440 crores. This engagement reprints a step forward in the country's strategic expansion in the energy storage segment, reinforcing our commitment to building capabilities across the energy value chain. In summary, quarter 1 FY '27 has reaffirmed the momentum we built through FY '26. We are executing at pace strengthening our balance sheet deepening our vertical integration and remaining firmly on track to deliver Strategy 3.0 within defined time lines. Now coming to the operational performance for the quarter. Next generation for quarter 1 FY '27 declined marginally by 5% year-on-year to 12.9 billion units, primarily driven by lower generation at Mahanadi and our hydro plants. Our hydro portfolio grew in capacity with the addition of [indiscernible] year-on-year. However, overall portfolio generation declined by almost 26% year-on-year owing to weak hydrology across the entire basis. National hydro generation was down 7% year-on-year. [indiscernible] was down 39% year-on-year, and [indiscernible] was down by 24% year-on-year. This comparison should be viewed in context. Last year saw an early onset of monsoon, while this year, the winter was longer in various Himachal basins areas and is no [indiscernible] much later. However, with the onset of monsoons, water flow has normalized. The generation in July till date has been excellent with our Karcham Baspa and Kutehr plants operating at over 100% PLF. We expect the plants to catch up and achieve the design energy for the full year. Further, we also continue to receive the capacity charges for our plant availability even when the generations are lower than their design energy. On the thermal portfolio, Mahanadi generation was impacted by a one-off evacuation availability for about 17 days in the quarter, which is now fully normalized. And I think due to the extreme wind conditions, this resulted in the impact on the transmission line. The loss in MUs year-on-year was about 184 million units or 7% decline year-on-year. However, this will be categorized under the force [indiscernible] provisions. As a reminder, we had a healthy quarter of merchant sales in Utkal last year. Quarter 1 was exceptional. This time, generation was pretty similar, but was sold under long-term contract in state. Going forward, the Utkal plant is expected to generate higher EBITDA due to its stable operation and supplying under the PPA with Karnataka and [indiscernible]. Overall, our thermal generation declined by 6% year-on-year to 8 billion units. Regarding the coal prices, coal prices witnessed an increase year-on-year. Taking a specific index like API 4 is a reference it stood at $90 in Q1 of FY '26 compared to $113 in Q1 FY '27, an increase of almost 25%. Our continued shift towards domestic coal has kept us resilient to this adverse wheel price movement. Further, our open capacity is reduced to under 4% currently, which renders stability to our earnings. And also to mention that the change in any import coal prices is passed through with no impact on JSW Energy, power supply through PPS. On the RE portfolio, our solar and wind generation was up by 29% and 3%, respectively, supported by increased capacity on year-on-year to 1,168-megawatt. Turning now to our financials, the quarter's figures. Many of you will already be familiar from precall materials. Revenue for the quarter remained flattish on a year-on-year basis coming in at INR 5,437 crores. EBITDA narrowed this trend growing marginally by 2% year-on-year to INR 3,103 crores. Our year-on-year capacity addition was 1,558 megawatt with fresh assets continuing to be capitalized onto the balance sheet, both depreciation and interest expenses have moved up in this step. On year-on-year basis, depreciation increased 20% in Q1 to INR 890 crores while interest cost climbed roughly 16% to INR 1,519 crores, movements that align with the pace of capacity we are adding. Coming to the bottom line, profit after tax stood at INR 533 crores, declining year-on-year on [indiscernible] of higher capitalization impact as new assets are commissioned. Correspondingly, the PAT attributable to shareholders was although down at INR 471 crores. As many of you are aware, we have already issued notice to exercise our call option on the remaining 26% stake in Mahan. Once this transaction closes, the minority of flow should shrink substantially. Turning to leverage. Trimming out debt, stripping out a debt tied to capital work in progress, our net debt to TTM EBITDA ratio stands at roughly 4.95 comfortably within our financial guardrails. And as noted earlier, a substantial improvement from the 5.2x we reported in FY '26. On the liquidity front, we remain well placed holding cash and cash equivalents of approximately INR 12,880 crores. Additionally, our cash return on net worth after adjusting for our JSM Steel shareholding continues to be healthy, about 14%. It reduced year-on-year primarily because of net worth increase due to recent fundraises. Overall, as I said in my opening statement, this has been a strong quarter fully in line with our lands with sharp focus on organic capacity addition and balance sheet deleveraging, both of which we have delivered decisively. And that momentum is carried firmly into quarter 2. That concludes my opening remarks, and happy to take any questions from you. Thank you.

[Operator Instructions] First question is from Sumit Kishore from Axis Capital.

First, a question on the macro situation in relation to thermal. We have seen that between 12:10 p.m. several thermal power plants in the country are slightly operating below technical minimum. What has been your experience for your thermal fleet? And how do you see this situation progressing in coming times?

Right. Yes, Sumit, thank you. Very correct because this is the peak time that the solar generation is at its peak. But just to tell you that for us, the barring, of course, the load factor reduces, but what we have gone -- we have -- our experience during the entire quarter has been that because of the attractive tariffs now at Mahanadi, our backdowns or reductions have been the minimum because of the melt order. And the minimum what we have done and in case of Utkal, there are no minimum which goes to for us, the backdowns have been maybe not below 60% in majority of the cases. But overall, on a round of clock basis, maybe we are -- maybe if you talk of the month of July, when the power demand has grown almost 10% take -- we have been operating at almost more than 85% PLF and more than 90% capability. So we have not experienced anything in terms of the technical minimum. In other plants, we don't need, but we are building the capacity -- capability to even operate at maybe below 50% also, which we have already done in our [indiscernible]

So just to add that we continue to regard our costs in those standard by loans, we are not kind of impacted. And we also have the flexibility to kind of sell that [indiscernible]

My second question on the thermal spaces. You have introduced a 60-megawatt Mahanadi under construction projects now. And combined with [indiscernible] Phase 1. How is the ramp-up on BTG sourcing for these projects progressing, particularly your arrangement with GE for the acquisition that you had made how is that shaping up? So what is your nameplate capacity in terms of internal manufacturing for boilers, turbines and generators today? And given you are looking to commission 600-megawatt [indiscernible] by FY '28. How is that going to pan out in terms of equipment sourcing? .

Correct. Sumit, I'll answer to both Mahanadi as well as this alone, what you asked. See, in case of Mahanadi, as we have said, we have been saying maybe since the post call after acquiring this asset last year, that the fourth unit of 600 megawatt, almost 40% -- 30% to 40% of the work was already complete and balance of plant already ready when we talk of coal handling plant or ash handling or railway or transmission network, everything is already in place. So what -- in this does this unit is getting completed through the same suppliers who have supplied the material because part material also of turbine and other things is available with us for the fourth unit. So we have placed the orders and the material is under back and all. So we will be, as we have said, in FY '28, the commissioning of the export unit, we are on track for that, and it will be through the Chinese suppliers [indiscernible]. For another 2 units, we are in discussions, and we will be making the announcement at the right time very so that what is our strategy for fifth and sixth unit to make it from 1.8 to 3.6 gigawatt. Now coming to Salboni. As we have announced earlier also, maybe 2 into 800 Phase 1 turbine generator order has already been placed to PJPS, [indiscernible] and already the work has started and the suppliers and commissioning are absolutely in line with the PPA time lines. Regarding the boiler, this is a G facility of Duraco, which we are in the process of acquisition, maybe by end of this quarter, it is expected that it will be there. That has a nameplate capacity as of now, as is where is basis is 1.1 gigawatt, means if we say 800-megawatt boiler, it can make 1.3 boilers in a year, but with some debottlenecking and some minor investment, what we have already planned. It's a plan. This will go to 2 to 800 means 1.6 gigawatt capacity because the [indiscernible], JSW plant in Chennai is already having a capacity of 200 to 800. So these 2 will be benchmarked together and this will be there. So this is the strategy. But we are totally derisked in terms of the supply chain of boiler urine generators for all our 800-megawatt expansion plans.

Okay. Just one last question on your external order for 200 megawatt, 400 megawatts are the battery SMB facility. So what has the battery SME facility scaled up to -- and what does this external contract means in terms of margins and what value add is chaseable?

Yes. Just to tell you the readiness of the plant. We have already completed the trial. We have already supplied maybe not a big quantity, but some orders we have supplied also to the third party. And plant is fully ready to start producing and meet the schedules suppliers as per the schedule, which has been agreed by the buyer. And regarding the financial, I'll request [indiscernible]. He will just let you know on the margins.

So I think here in terms of the margin per dollar, if you look at it, it's in the range of about $2.75 to $3. So like if you kind of look at the overall capacity running, it will be about $15 million in a year. So that's how we are seeing in thinking at about close to INR 150-odd crores of EBITDA from this project. .

The next question is from Apoorva Bahadur from IIFL Capital.

On this the expansion for [indiscernible], you mentioned that the main Chinese suppliers. So will there be any restriction on that in terms of signing up with a utility or do we continue in the merchant or captive market?

No, there are -- see, the thing is that those are only the guardrails. There is no such regulation in which a lot of states are looking costly. One thing which has to import it, many, there are more than one state who are interested, keeping in mind now that the so much of solar and so much this question was asked in the very beginning that maybe the technical minimum coming down, some of the buyers are preferring 600 lower capacity tie-up because even if they have to do back down, it is comfortably at 50%. So we don't see -- we are seeing a lot of interest, especially with the way international coal prices are moving and the way the currency direction is a lot of imported coal-based power buying, they are looking for to replace it with domestic. So we are confident that this will happen. And in this case, because we have bought the permission also from the authorities for this partial import to complete the asset depot units. So we don't see that as a challenge. And there is a lot of interest we are seeing in terms of signing a power purchase agreement. But to remember, even if it is merchant, with next to the mine and the coal cost being so low and the project -- the cost at which we will be completing this another 600 megawatt, it will be significantly lower than the benchmark per megawatt cost of capacity addition. I think this will remain attractive in both the ways whether it is merchant or whether it is in long-term PPA. So we will take a call. But with PPA opportunities, we are absolutely confident it will be happening.

Sure, sir, understood. Sir, secondly, on this bet business return profile, I think I highlighted that we intend to make around per kilowatt hour of storage capacity. Do you see a glide path towards improving the value addition and the margins were here? Or this is something that you're looking like a great margin from this business?

Yes, I think this is more from the assembly, whatever we are doing. I think this is what we're looking at. We tend to keep exploring in terms of [indiscernible] also come up with and the incentive to set up sales and everything. We'll continue to evaluate that. But in terms of whatever we have invested, I think this the kind of return profile [indiscernible]

And also to add what Prabhakaran just said to -- in terms of the value addition, the opportunities, which we have identified going forward is one. As we said, that backward integration and maybe instead of importing the cells, maybe making the sales in India for which we are in discussion with various technology partners. And second is in terms of scaling up like today, it is a 5-megawatt hour of container size which is there. Going forward, we are building the capability even if when the product is available, the components are available instead from 5 to make it to 6, 7, 8, which becomes more cost efficient for us as well as to the buyer also.

And sir, do we have a long-term partnership with the supplier from China for importing the sales?

Right now, no. Right now, no.

The warranties for this BESS are typically in this industrial driven by the OEM, right, the cell manufacturer?

Yes, yes, yes.

Sir, I would also like to touch upon the connectivity for our renewable capacity, I think very helpful [indiscernible] in the presentation about the 3 gigawatts or remaining [indiscernible] connectivity in FY '27. Is all of it operational, first of all? And secondly, what's the update for FY '28? Do we have the full capacity and activity capacity operational as well?

Yes. I'll come to that. Out of the -- as I said, that till date in the current year since April 1, we have commissioned 1.1 gigawatt. We have added the fresh capacity. Just to tell you that out of this 1,100 megawatt at right now is under G&A, which is facing curtailment. And we are -- as you -- this is getting converted, the new capacity is getting commissioned. And we are almost certain that by -- before 31st August, this will get converted into G&A. Once it gets converted into G&A, then there will be no curtailment. So this 300 megawatts, which is under curtailment and 1 earlier project, which I said last time also, of in Rajasthan of Obu Power, which we acquired 400 megawatt, that is also under G&A which was to get commissioned, the connectivity was to get ready by July end is expected to be sometime in September or October. So we will be waiting for that till then. These 2 projects remain under G&A. Now balance 1.9 gigawatts, which we have to commission in this year. I just want to tell you that out of this 28% of the capacity of what we are doing maybe more than 530 megawatts of balance 1900, which we have to execute is our group captive, which is a mix of grid also majority of the capacities of grid which is we have a dedicated transmission line of ours, not connected to the grid is insulated. So this 530 is totally insulated. Another is that also the significant part of what we are doing with abilities also, there also we have the connectivities fully in place and operational connectivity, which is a mix of SPU as well CPU. And also the C&I customers, what we are C&I projects what we are going to execute in the current year. So these are the 3 mixes. But whatever 1,900 gig megawatts, we have to commission to reach the 3 gigawatt guidance we have given. We are absolutely 100% secured from connectivity and within all commissioned also.

And for '28?

And for FY '28, we will definitely come back to you. We have. But as I have been saying earlier also, that the 2 areas were in focus when we give the guidance for the year, maybe these 2 are the major driving factors based on which we'll be giving so that there is a surety of the numbers which are being achieved. But we will be definitely at the right time soon, we will come back for FY '28.

I appreciate it, sir. If I may squeeze in just one more question on wind generation. PLF appear to be a little bit weaker Y-o-Y. I think last year was exceptionally strong. Like hydro, are you also seeing them recover in July or they continue to trend lower?

Yes, we have seen a significant recovery. And normally, if you see, it is a very clearly established, there are patterns when there are huge heavy rains, the temperature drops, normally, the wind speed is related as it improves, which we have also seen once the monsoon started the wind speed season at this advantage. This time, the temperatures have been higher in many of the assets for us [indiscernible], we have leased the PLF of 100% also. Otherwise, it is 90%, 100% PLF, what we have achieved. So we don't see this as a chart. And in July, if you see, as compared to previous months, the PLF is already higher by about 5% to 6%.

The next question is from Satyadeep Jain from AMBIT Capital.

I'm [indiscernible] details, I think first time I'm seeing some actually the 2 projects [indiscernible] Just maybe if you can -- you shared some details on [indiscernible]. But maybe if you can elaborate on what is the CapEx you're expecting? And what is the level of confidence in achieving this commissioning that you mentioned?

See, as I told you that there are 2 power purchase agreements which we have signed one is the [indiscernible] project in Maharashtra with MSEDCL 1,500 megawatt. Another is in UP Kandora of 16, 18 megawatts out of it, 1,500 megawatt [indiscernible] been signed with the state of UP. Regarding the readiness in [indiscernible] we are fully ready. In terms of whether it is the environment clearance, which we have received, the land acquisition, majorly, it has been done. Some part is risk, but that is not in the core project area. So that is not going to have any impact. That's in carry on manually. And then the third is the ForEx Stage 1 clearance has already been received. So we are at a very advanced stage. The ordering has already been placed, like for the entire civil work, the order has been placed to [indiscernible] for electromechanical, the order has been placed to void. So we are fully ready in terms of and already the mobilization the construction power also has already been -- we have been awarded and the connectivity has already been done. But you can see also in the slide, so we are ready with that in terms of execution and meeting the time lines, we don't see as a challenge and especially with our experience and expertise of executing greenfield hydro projects in very, very tough terrains of [indiscernible]. Here, the quality of rock the ease of executing the project comparatively is much easier as compared to that. I'm not so easy, but definitely, the difficulty levels are much lesser. The [indiscernible] part is very, very less as compared to what it is there in Hamada, in the projects. So we are absolutely confident of meeting the time lines in terms of the PPA time lines, of course, if there is any delay in terms of the availability of power evacuation by the state then only it can be, but we don't see that as a challenge also. So [indiscernible], we are absolutely expected [indiscernible], I told you that we have already secured the ESC recommendation for EC, from Ministry of Environment and ForEx. And application for the ForEx [indiscernible] has already been submitted and connectivity application also has been submitted to the AUP authorities. So civil work and construction of our process is on and we expect all the readiness by maybe in the last quarter of the current fiscal, the readiness to start the execution work at this site also and they tend to be within the time lines. Regarding the CapEx, we will cut back. But as I said to you, that rather than maybe we are not particularly for a project maybe giving a CapEx is not the thing. But I can tell you that this is a very, very good high returns in terms of when we say benchmark returns of mid-teens higher as here, I can say, it will be significantly high teen IRRs we can say is what we are absolutely confident with the tariff and the cost at which most of the ordering has already happened.

Is it safe to assume maybe INR 5 crores per megawatt, [indiscernible]

[indiscernible] from this number, you can say that. Not very far from this number.

And the certain tax you mentioned for [indiscernible] for the coming expansion. Can you -- is it possible to maybe indicate what kind of CapEx can we look for 600 and the remaining plan?

Yes, I can tell you at what we execute the greenfield project, we are doing at [indiscernible] also for which we have placed the order boiler, we are going to do our sales civil part orders we have already placed the work has started. We know we have a fair idea of completing a [indiscernible] there. As compared to that, [indiscernible] will be completing, I can say definitely that we will be at least 25% to 30% lower by doubling the capacity from INR 1,800 to INR 3,600.

Okay. Just lastly on G&A. What was the curtailment that you can mention in this quarter but overall for these 2 projects?

See, we had total wind plus solar put together. We had a curtailment of 69 million units during the quarter. But as I told you, this has to be divided into 2. There were curtailments under the G&A projects also for which the power was being supplied under the PPA. There it is being treated as deemed as plant availability, and we are getting the tariff against this supply, even if there is a backdown because my buyer has scheduled in the extreme to draw the power plant is available even if I'm being asked by the load center or to put the power, my buyer is getting the power, and I'm getting my money for this power under the G&A.

Yes. I think in terms of the overall revenue, it's not material is about INR 15 crores this quarter for us.

The next question is from Nikhil Nigania from Bernstein. .

It's a continuation on the -- your question on Palm storage project. I wanted to understand if there is any update on the Karnataka tender where the tariffs look even more attractive than the ones you have in the other 2 projects.