PTC India Financial Services Limited (533344) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. I'm Momita, moderator for the conference call. Welcome to Q1 FY '22 Earnings Conference Call of PTC India Financial Services Limited, hosted by S-Ancial Technologies. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand over the floor to Mr. Karan Thakker of S-Ancial Technologies. Thank you, and over to you, sir.

Thank you. Hello, everyone. On behalf of S-Ancial Technologies, we welcome you all to the PTC India Financial Services Limited Q1 FY '22 Earnings Conference Call. From the management, we have Dr. Pawan Singh, MD and CEO; CA Sajay Rustagi, CFO; CA Abhinav Goyal, Vice President and Head of Investor Relations; Mr. Vijay Singh Bisht, Executive Vice President; and Mr. Sitesh Sinha, Senior Vice President. I request you to refer the investor presentation available at the company's website, which will throw much more light. Starting with statutory declaration, certain statements in this con call maybe forward-looking. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. So these statements are not guarantees of future results. Now may I request Dr. Pawan Singh to take us through his opening remarks, subsequent to which we may open the floor for the Q&A session. Thank you, and over to you, Pawan Singh.

Yes. So good evening, and thank you, everyone, for being here in this presentation, and happy to be connected to you. And since last time when we met, of course, the COVID situation was a little at its peak. And hopefully, things are now -- better now. Like Delhi has opened quite a bit, and I came to know recently that Mumbai also has become almost normal. So this is a very good news for all of us, and let's all pray and hope that things improve and normalcy prevails in everybody's life, and -- so that this situation -- unprecedented situation which we faced in our lives and of our near and dear ones doesn't happen, and also the business goes in a normal and usual way. Fortunately, for us, though COVID situation was bad, because of the nature of business which we do, we were not subject to any challenge or the vagary arising out of the COVID situation. And not even in the quarter 1 or even in quarter 2 -- sorry, in the quarter 4 of the last year and quarter 1 of the current year, we were not subject to any vagaries of challenges. [Technical Difficulty] So there was a small interruption, sorry about that, yes. So the -- for us, the challenges were not felt either in the fourth quarter or the last quarter of the previous year or even in the first quarter of the current year, and that is primarily because of the nature of business which we do, where either our payments are linked to a concessioner agreement largely related to annuity payments or related to variable where we have almost 47% loan book where they are a must run category and payments that are coming in time. Similarly, thanks to Atmanirbhar package, which gave the state position of the counterparties, the state Transcos and state DISCOMs also was good and they were able to make payment in time. Last year, in the third and fourth quarter, we became optimistic, and we pushed our sanction and disbursement. And we made up for the sanction and disbursement for what we were not able to do in the first and second quarter. And we were able to do sanction close to about INR 2,500 crores. And so this is what -- and this year -- yes, this year, we have started with a very good bang. And we have done -- in the first quarter itself, we have done sanction of close to INR 2,328 crores, and we have done disbursement close to INR 1,330 crores. So perhaps this is one of the highest disbursement made by PFS in the first quarter in their entire -- I think entire tenure. So going by that, we are very optimistic of the business. We have a good pipeline of business in place. And we are hopeful of doing -- because normally the first quarter is a little slow. And then from second, third and fourth, as we go by the quarters, the disbursement and sanction picks up. So we will be able to outnumber the sanctions and disbursement, what we have achieved in the first quarters, and we should be -- normally speaking, should be able to grow over that. And we have a good pipeline of close to INR 2,000 crores of projects under consideration for approval. As far as -- our focus also has been 3-, 4-pronged. One is that we are a focused -- as I said last time also, we are a focused infrastructure finance company. We are trying to become carbon-neutral infrastructure finance company. We are committed to sustainability. And as a part of the process, we have tried to decarbonize our balance sheet and thermal assets. We are close to about 10%, which we're trying to bring down further. And the buzzword for us has been additionality and sustainability. So other areas which we have picked up recently is your e-mobility, water sanitation, your -- the desalinization plant then your -- the third-party PPA or the C&I segment of the wind and transmission, decentralized power, solar and wind, these are the areas which we have started looking at and we have started making business. So the whole pattern we are trying to make the asset class more sustainability-oriented, and the policy of the government also is supporting sustainability infrastructure in a big way. Also, what we have been trying time and again is to build up a sustainable model in terms of our operating parameters. And that is why the focus has been to maintain a good spread and maintain a good quality of assets. And that is why spread from last quarter 2.98 has gone up to 3.31. And the important thing is that the lenders' faith in the PFS. And against some time back when the long-term to short-term ratio was almost 89-11 -- sorry, 60:40, it came down to -- last quarter, it came down to 89:11. So that is the kind of long-term to short-term ratio. And we have a very good -- of course, my CFO will tell you the exact number, but we have a very good HQLA position and undrawn limits available with us. Now this benefits us from 2 angles. One is that it gives us the liquidity support. At any point of time, we can fall back on borrowings line of credits, which are available to us. And when you are overbought, you are also able to bring down your cost of borrowing. So if you look at our cost of borrowing, we have brought it down almost 100 bps from the Q1 of '21 to Q1 of '22. And our cost of borrowing today has become fairly competitive. It is 7.65%. And our assessment is based on the fact that as we are -- a large part of our borrowing comes from reference rate model where it's linked to the bank's base rate and with the falling base rate, we are expecting further improvements in the borrowing cost, which will again reflect in our spread and mix. So this is -- we want to build up a good spread margin and good NIM margin, which, of course, also reflects in the return on asset. And you will find that return on asset from the last quarter, the first quarter of the year 2021. For the year, '21-'22, it has gone up from 0.91% to 1.67%. We are a very efficient company, so our cost-to-income ratio is 10.18%. And the capital adequacy, we are now very healthy capital adequacy of close to 24.49%, and we have a debt equity ratio of less than 4x. All this provides a very good elbow room for us to -- for growing our book further. I would not say that capital is -- like, NBFC should be averse to capital. But we have a very good cushion available to grow our book, both from debt equity ratio angle and the regulatory capital adequacy range. On the resolution of stress asset, of course, there have been no further slippages, and there is a marginal improvement both in terms of net NPA and gross NPA. Gross NPA has come down from -- in Q1, it was INR 952 crores, which has come down to INR 821 crores in the Q1 of '21, '22. And net NPA, which was INR 551 crores in the Q1 of 2021 has come down to INR 294 crores. And I would reiterate the point that all this INR 294 crores, we have got -- we are on the stage of settlement. And last time when I come to you, and I had kind of given an indication that probably in this quarter or early next quarter, this will be resolved. But because of COVID situation, most of my officers were affected and even the cases where the elements were to be decided by tribunals NCLT and NCLAT, that meeting of NCLT, NCLAT was not happening and which has started only now. So there is what was to happen maybe in this early part of this quarter or later part of the previous quarter, probably will go to the end of this quarter, early part of the next quarter, which -- but of course, now things are operational. So we hope that there could be a few days here and there, maybe some operational point which may come. But we are moving towards a realization of this value. When I say realization, some of it will come in the form of full cash through onetime settlement, and in some cases, the cash flows will start. There are 2 accounts, which I'll mention, which is not part of NPA, but it's a large account where it is getting reflected in our Stage 3, and that is INR 161 crores in IL&FS Tamil Nadu. And roughly, that is the book value. And Danu Wind, again, INR 300 crores, which is Andhra DISCOM, where delays in payment and lower tariffs. In both the cases, in IL&FS, yesterday only the final hearing of NCLT has happened, NCLAT has happened, and we are preparing the documentation. And as soon as the notification from the NCLAT comes, the documentation will be placed, there's a good amount lying in the TRA. And we expect because this was in the amber category, as you know, IL&FS has put all its assets into 3 categories; green, amber and red. It was in amber, so there was no cash flows available, the embargo on cash flow. So the cash flow will start pouring in. And not only that, they have enough amount to even service the debt. On the case of Danu Wind, we have 2 routes which are available to us. One is the ARC route where bids would be similar to what my book value is, and second route is through... [Audio Gap] the government is intervening. High Court has almost completed this hearing, so High Court may give an order very soon. So we'll -- as I said... [Audio Gap] are not functioning and it got delayed by a quarter or so. Here also, we are very, very close to the resolution, either end of this quarter or the beginning of this quarter. So on the stressed asset, there are no fresh slippages which have happened. We are able to maintain. We have developed a very strong early warning system whereby we are able to -- we don't really go by hedging analysis only, as I've been repeating it time and again in our con calls. We have a mechanism where any major parameter, which was taken at the time of credit underwriting, if it goes for a change, we are able to signal out early symptoms of stress in the project, and we are able to take corrective action. And many of the cases where -- which we are following in early warning systems have moved over from the early warning space to normal space, which we have in the books. So return -- sorry, the sanction for the first quarter has been close to about INR 1,757 crores, disbursement close to INR 1,300 crores. And of course, provision coverage ratio stands at 65%. So having given a snapshot of what we have done, as I said that at this time, I must say that we have been able to -- our business has been able to capture the normalcy of business in the sense that the provisioning cycle, which we used to face, is largely behind us. And I was telling you that from next quarter onwards, the provisioning numbers would look totally different, and this is likely to continue now as a part of the results. So that is how we have it. [Audio Gap] roughly INR 45 crores in this particular quarter. And also, I would like to highlight that in one of the cases where we have made provisioning of -- that is one of the assets which we have been -- made a provisioning of INR 90 crores in the last quarter. That also -- there is a one-time settlement offer. Subject to certain clearances, Board approval, RBI clearances, we may go ahead and settle that. So this is what in the nutshell, I've been able to give you as the road map where we stand, how we have positioned ourselves, in which direction we'll be moving. All that I have been able to provide you, I hope so to your satisfaction. But we'll be very happy to take any query. But before that, Sanjay will give you a little -- I have tried to give some numbers, but Sanjay will try to top up some detailing of the numbers. Sanjay, who is CFO of PTC India Financial Services. Over to you, Sanjay.

Thank you, sir. Good evening all. I'm just giving you the snapshot of the financial numbers for the quarter ended June 2021. With respect to the -- if we do the comparison between this quarter versus the previous year corresponding quarter, the total income for this quarter stood at INR 253.95 crores as compared to INR 298 crores in the previous quarter. The profit before tax and profit after tax is at INR 60.93 crores and INR 45.60 crores. Yield on the earning assets stood at 10.96%, and the debt equity ratio has improved to 3.95x in Q1 as compared to 4.34%. The net interest margin has been improved to 3.81% as compared to 3.54%. And the spread for Q1 stood at 3.31% as compared to 2.80% in Q1 '21. The cost of borrowing has been considerably reduced to 7.65% as compared to the 8.76%. And the -- this is the -- and if we compare to the preceding quarter, that is of March '21, the total income stood at INR 253 crores against INR 274 crores. The profit before tax is INR 60.93 crores as compared to the loss of INR 30.54 crores. And the spread for the quarter improved to 3.31% as compared to 2.98%. As on 30 June, 2021, our book is close to INR 10,426 odd crores. It includes the nonfund-based commitment aggregating to INR 343 crores. The capital adequacy has -- at a very comfortable level at 24.49%, and return on the net worth for the quarter is at 8.46%. So these are the financial numbers.

Yes. So that is fine. So now I'm accompanied also by Mr. Sitesh Sinha and Mr. V.S. Bisht. Mr. Sitesh Sinha is making his debut today in the investor call, and he is the Senior VP of Credit. And Mr. Naveen Kumar, who is superannuated until he's there. So he's holding the fort as far as the credit department is concerned. And I also flanked by Mr. V.S. Bisht, who is EVP and in charge of disbursement, very important department, and other areas, senior most executive of this company and also first employee of this company, and also in charge of stress asset resolution, which is one of our flagship programs, which we always talk about. So I will -- of course, I'll -- through a Q&A mechanism -- because time is short for us, I'll give you more time for Q&A. But wherever required, you will get on-spot answer from Mr. Sitesh Sinha and Mr. V.S. Bisht. So you can start with the Q&A.

[Operator Instructions] Our first question from Mr. Mangesh Kulkarni from Almondz Global Securities.

I just wanted to know about the portfolio where we have seen a sharp drop in our renewable portfolio from around INR 4,475 crores to INR 3,210 crores. So can you give some clarity on this?

Yes. So I'll ask Sitesh Sinha to give a little clarity on this and then I will add on, yes.

In past, we are also seeing that our objective and strategy is going towards the diversification and more towards the sustainability in new upcoming areas like water treatment and e-mobility. So in this quarter, June, we have sanction towards more those sustainability projects. That's why -- and this is why, in fact, we have disbursed towards more those kind of projects. In like e-mobility, we have disbursed INR 100 crores; in water, we have disbursed another INR 50-odd crores. So that makes the reduction in solar and wind portfolio. But this will -- it is not -- by design, we are reducing because we are also focusing on other areas. That's why share of our pie of this solar and wind is reducing. But that doesn't mean we are off letting or we are reducing intentionally exposure because of going concern. It is not like that. We will remain the focus in the renewal energy sector, which is the part of overall sustainability goal of the country as well as of PFS.

But sir, is there any repayment in this because it's a sharp drop of around INR 1,200 crores?

Yes, yes. Sure. I'll address that. See, there have been -- see, as I said that the first quarter itself, we have had almost INR 1,800 crores of prepayment. And this was an industry phenomena, and we were not averse to it. See, this prepayment is also part of a historical trend, which happens. And in the first quarter, normally prepayments are high. This is also because of the fact that bunching happens towards the end of the year. And many of that -- it gets thrown to the next quarter of the -- beginning of the next quarter. So it is primarily a throw-forward from the end of the financial year, which happens in the first quarter. But this trend will not continue in the subsequent quarters. As of now, we have much, much lower numbers with us where the prepayment is concerned. But then also, let me tell you that prepayment is a common thing in infrastructure assets, and particularly, as you rightly pointed out, in the renewable assets. Because what happens is that many of these borrowers, what they do is once the project is complete, it has 2, 3 years of satisfactory operation, they either go for bond issuance or ECB borrowing. And they give us new projects where we do lending, and the churning of asset happens. So what happens in the first quarter, there will be some kind of -- there will be no direct correlation, though, we did about INR 1,300 crores of disbursement in the first quarter, but prepayments were also about INR 1,800 crores. So that is one of the reasons why you will find the decline in the renewable asset. But what Sitesh pointed out is also very, very important because we don't only want to be in renewable space. And we want to be seen as a complete sustainable infrastructure finance company in the entire value chain because the renewable sector, which is based on mostly PPAs by DISCOM. Of course, they are must-run and the payments come here on priority compared to normal power supply. But still, it is not better, not a very wise thing in long run to only keep all my exposure in the constituents, which is -- the counter party is a distribution company. So that is why, as he pointed out, the new loans, which we have done, is in the area of -- like whatever new loans we have done, it is solar, we have done 16%; wind, we have done 21%; transmission, 11.3%; road, again, 23%; and state power, again, 14%, 15%. So this is how we have tried to do our funding. So we -- as a matter of strategy also, we would like to -- of course, I'm not saying that it will not be our backbone, it will continue to be our backbone. But it cannot be entirely renewable-dependent company. It has to be sustainability focused. It has to be what we call additionality and sustainability focused company. And these are the areas where -- like, for example, e-mobility is next big growth story, which is going to happen. The way solar unfolded, e-mobility, and that's where we have been the pioneers and would like to expand ourselves. Another area which is coming up in a big way is what we call battery charging, which -- along with wind or solar, the battery charging facility, and the -- so that you have -- problem with solar and wind is that they are available -- only the PLF is very low, and they are available for limited time. So battery storage is a new area, which is coming up and economically also is going to be viable. And government has already announced 4,000 megawatt of schemes. Pilot -- although it's 4,000 megawatt, big amount, but they have called it a pilot scheme. So that is another area of -- area which has -- which we are looking at. And another area which is coming up that is again sustainability related where -- automated meters through annuity payment model, which is being followed in some of the states. So these are the areas we will try to -- so we'll try to diversify into areas and not depend on -- very much depend on the counterparties. Renewable, of course, is a good area to lend. It continues to be good area. But then it is always better to strategize in advance and not wait for things to go wrong. So that is where we are coming from, and that is how I gave you both operational reasons and strategic reasons why renewable has shrunk to the extent. But today, also, my loan portfolio, if you look at -- the renewable constitutes almost...

32%.

Yes. 32% of my loan book. But if I add to that, the corporate loans, which I've given to renewable, the number may look a little differently. And in that case, the number may be higher than what we are doing. Also since what we are doing, that is going to add another 8% to it. So it becomes close to 40%. So what we are also doing in renewable space is that we are doing product differentiation. So product differentiation means what we are doing is that though it is going to renewable project, but we are trying to give it to the sponsoring company, which has a better credit rating. But the money is utilized as a first mile financing in the projects. So there, we are able to get a good spread because in the renewable space, everybody is entering, it's a gold chase which has started. So everybody is entering into that space. So that is why prepayments are happening and many bankers also entering into the space. So that is why we are trying to differentiate product and give this type of -- even renewable space, we are giving this kind of a product to the existing renewable companies. That is close to about 8%.

The next question from [ Mr. Dhruv Halagodi ], an individual investor.

Why there is a continuously negative growth in the interest income or the sales number, sir? And what about the disinvestment process, sir? Since long time we are waiting. So in PTC India con call, we are asking the same question, they are not answering to us, at least they are not taking our questions also. As a shareholder of your company, it is our right to ask what is the status of the disinvestment process. So please tell us the reason behind the delay of the disinvestment process, sir.

Yes. So first question regarding your -- the earning decrease, which has happened, but profitability increase has happened. So see, earnings has been compensated by the expense, and the stress asset provisioning, the credit cost, which used to incur quite a bit, so that has covered that. And that is why, ultimately, see, it is also though your concern on earning is very important, but also my point to you that, ultimately, it is the PAT number, which is very, very important, more important. So PAT number is INR 46 crores. And the point I'm trying to make here is that we work on all fronts, increasing the earning, the resolution of stress asset. And that is why the significant improvement in credit costs. And not only improvement in this quarter. What I'm saying is that we have -- the provisioning cycle is behind us. So I told in the last call -- con call also that you will find -- start finding -- from the next quarter, you will find that the credit cost has substantially come down. And this trend, you will find also in our -- so the focus area for us, as I said, was consolidation. And consolidation was resolution of stress, as I said, liquidity management so that we are overbought, and we don't face -- because post IL&FS, it was a big change for NBFCs to improve their liquidity position. So I have said that liquidity, which was 60% long term, 40% short term, is now 90% long term and 10% short term. And of course, we have good credit lines available. So -- and that has resulted in bringing down by cost. That is -- these are 2 reasons which attribute to the profit which we have. But there has been some -- compared to the first quarter of the previous year, there has been some marginal decline in the interest income. Not substantial, but marginal. And that is primarily because it goes back to the answer which I gave in the previous question, which I gave, is that the prepayments happened INR 1,800 crores, disbursement happened, INR 1,300 crores. The INR 500 crores, the gap was there. That is the reason why -- but then I said that this gets arrested in the second quarter. In the second quarter, what happens is that my disbursements start overtaking the repayment. And third, fourth quarter, the disbursements go far ahead than the prepayment. So the earning make up, which you have raised, will get made up. So all things don't happen at the same time because when we are fighting at various fronts, the other fronts, which have given result in the PAT. But income, yes, which has marginally declined over the first quarter, will also -- because of the prepayment, which happened, hopefully, this quarter, we should be able to take care of it. And the decline may not happen the way you are seeing it.

And the disinvestments, sir?

Disinvestments, see, I'll -- because it is a PTC shareholder, and it is disinvesting, so please don't take it otherwise, but they are the right people to answer it. I'm not the right person to answer it. But as far as I'm concerned, as of now, I don't have any tangible information on this that this process is going ahead. If I have any tangible information at any point of time, I'll be happy to share.

At least process is going on or no, sir?

See, that is for PTC to decide whether they drop or they don't drop. But as far as I'm concerned, as of now, I don't have any tangible information. If there were any tangible information available to me, I would have definitely shared it with you.

The next question is from Mr. Varun Singh, individual investor.

Sir, I have a few questions. I would like to know how much sanction and disbursement are we expecting in Q2 FY '22, I mean the current quarter?

Yes. So I think I'll let Mr. Sitesh Sinha answer that.

Yes. In Q2, we are expecting sanction around INR 1,000 crores, INR 1,200 crores. And out of that total, including previous quarter sanction, we will be able to disburse close to INR 1,500 crores in this Q2. So that is our target to achieve. And towards that -- we are inching towards that target in the mid of the quarter also.

Okay. Another question I have is, like, can you please provide the breakup of disbursement segment wise?

For Q1?

Sir, yes.

So in this Q1, disbursement we have done close to INR 1,254 crores, and that includes solar, 5.7%; wind, 5.7%; transmission, 8.85%; road is 30.17%; and electric mobility, 7.97%. And the -- another renewal energy through that -- as Dr. Pawan Singh has explained, through different instruments, that is close to 21.64%. And remaining, the similar instrument, we have also applied not [Indiscernible], in other areas like road and port, so that constitutes about 19.93%. This makes 100% for INR 1,254 crores.

Okay. Another question is like what is the status of onetime settlement offer of one of the loan accounts you have quoted last year?

Yes. So I'll ask Mr. Bisht to answer that.

Well, I think we have got OTS offer on this -- one of the account, but there were some queries from our Board. And we are trying to interact with our borrower also, and there has been some issues on that. But we are very hopeful that we will be able to solve it. We have got a positive offer, but that -- we are just going through the queries of the Board. And I think within a short time, we'll be able to finalize it.

If I may squeeze in the last question, just one last question, sir. Recently, the cost of borrowing has been reduced. So are we expecting this trend to continue in the coming quarters?

Yes. So in my opening remarks, I had mentioned that our borrowing is basically base rate, mostly dependent on that. And as the base rate -- and also what we are doing is that since we are overbought in terms of liquidity. So the spread on base rate also has come down substantially for us. So we expect in the coming times -- because today also RBI came with the monetary policy, and based on that, the trend which is looking like, I think we should be able to hold on to this trend in coming times surely.

The next question from Mr. [ Rajesh Chaudhary from Zenith ].

First of all, congratulations on a great set of numbers. My question would be, can we expect the sales to grow at 10% and profitability to increase by 20% CAGR on year-on-year basis?

Sorry, I'll ask you to repeat what you said.

Yes. My question is can we expect the revenues to -- or the sales to grow by 10%, say, and the profitability to increase by 20% year-on-year basis?

Yes. So see what happens, I will answer it this way that as Sitesh Sinha pointed out, we have a disbursement target of close to INR 5,100 crores, right? If I have a disbursement target of INR 5,100 crores and I expect prepayments on the -- a little bit on the aggressive side also, so about INR 3,000 crores, suppose, I presume that prepayments happen. So roughly my book size should grow up by INR 2,000 crores, right? So INR 2,000 crores gives me a spread of -- average spread of 2%. So now that should answer your question, both in terms of growth and in terms of -- and I have a yield of close to 10.98. So you can add 10.98 into the growth numbers, you will get the growth number, and you will also get the growth in the PAT number, both you will get.

Okay. And I must also...

I hope I have made sense to you, I suppose. Right, yes.

Yes. I must also admit that during these COVID times, I think your team has worked very hard, and that is reflected in the results that have come.

We appreciate your remarks. Thank you so much. It makes us feel good and encouraged.

The next question from Mr. [ Vijay Pawar from Senora Capital ].

Am I audible?

Yes, yes. Please, Mr. Pawar, please go ahead.

Congratulations, sir, for a good set of numbers. I just had a couple of questions. So the first is are we expecting any further provisions on the stressed accounts in the coming quarters?

Yes. So Mr. Bisht, will you like to take that? Or...

Basically, see, this provisioning is -- it is also in process basically. But we are -- as MD has pointed out, we're on the back end of the provisioning cycle. And we think that going forward, apart from the standard provisioning, there would be some minor amount of provisioning. Yes, it will be there, but it will be very on the lower side. And we are also looking for one more account to be resolved very shortly. Maybe this quarter or at the most, in the next quarter, we'll be able to resolve that. And I think by the -- clearly, at the end of the -- all those large accounts, which were legacy accounts, which we're having about hydro and thermal, now we are left out only those accounts which are in the liquidation stage where the provisioning cycle is nearly complete.

I think Mr. Bisht has answered it well.

Yes. Okay, and my second question is that Mr. Naveen has retired from last month. So have you -- do you have any replacement for him in the director position?

See, his replacement, the Board is working on that. And I have 2 able gentlemen in the seat whom I have brought today, Mr. Bisht and Mr. Sitesh Sinha. So they're very, very competent people. And of course, new director operations Board will certainly find in a short period. But I have a very, very competent team. And they are the ones who have held the port for -- as I said, Mr. Bisht is the first employee of this company. And Mr. Sitesh Sinha is also a very senior employee, very experienced in credit underwriting. I'm supported by a very, very competent team.

The next question from Mr. Mangesh Kulkarni from Almondz Global Securities.

In the last con call, we talked about 3 accounts. And today, we have talked about 2 more accounts. So total exposure to all these 5 accounts will be around INR 1,015 crores. So out of this, what will be the recovery we are expecting and provision write backs we are expecting? Or just throw some light on.

So if my -- if I were in the same pace as you are, the 3 accounts were the NPA accounts and 2 accounts which I'm talking about are the stage 3 accounts. So if I'm on the same page, so the 3 accounts, which we talked last time, if I'm on the same page and if I've understood you correctly, 1 was NSL Nagapatnam, second was Meenakshi and third was NRSS. So as I said, NSL Nagapatnam is a onetime settlement and Mr. Bisht has given you detail as to -- we are fully provided and we have got an offer, there are certain observations which we are handling. So that -- he says that should be very soon clear. Second is, of course, NRSS, the bids have been received. Now we are taking it to Board for approval. And we are hopeful of getting close to the book value, which is today available. And in Meenakshi Energy, resolution plan is also...

In the last stages.

Yes. So it is now before the NCLT to be stamped. And once it is approved, the resolution plan of Meenakshi will be in place. So that also we are expecting in this quarter or maybe latest early of the next quarter. The 2 accounts other than this are -- which are stage 3, not NPA, the IL&FS Tamil Nadu, Danu Wind, I made my opening remarks on that. And IL&FS, as I said that yesterday the final hearing of NCLAT has happened. And meanwhile, back end, we are doing the documentation. And money is lying in the TRA. So maybe we hope that at least in this quarter, the documentation and resolution plan will be approved and the money will start flowing from the TRA account. And in case of Danu Wind, I said that Andhra Pradesh is having a final hearing Andhra online. And parallelly, we have an ARC offer close to the book value. So either of the 2 routes, we are hopeful of resolving it in this quarter or early next quarter.

So what will be the recovery we are expecting from all these?

That is why I said -- in all cases, we said that -- in one case, in NSL Nagapatnam, it's a write-back. In other cases, I said that the offer is close to the book value. So whatever is the book value, it will be similar to the book value.

And our -- we were also in the discussion with...

I just wanted to tell you about one account regarding this Dirang. So in Dirang, because we got roughly -- how much? Sanjay will give the details.

42.

Value -- at what value we realized, and what is the value at which we sold some amount in this quarter, which we are showing it as a part of -- no, not the -- no, no, it's not shown in the PAT, but it is shown in the other income. Sanjay, give a little bit of detail on that.

Yes. So while accepting the OTS offer from Dirang Energy Private Limited, company got around 2.19 crores shares at the rate of INR 14.78. The total value is INR 32-odd crores. And during the Q1 -- so the rate which we got these share is INR 14.78. And during this period till 30th June, we sold around 35,36,000 shares and the value which we realized is over and above INR 20. And we made a cash profit of INR 1,76,93,000 till 30th June. And there is a restatement of the balance shares that is 1.83 crores, and the share price as on 30th June was INR 18.40 crore. So close to INR 12.51 crores has been accounted as the -- in our results as other comprehensive income. So that doesn't form part of my P&L PBT. But it's shown -- since it's a nonbusiness item. So this is about Dirang. And As of today, we have sold another close to 50 lakh shares from first of July to till date, and average price is around INR 18.

Okay. And sir, my next question is on our -- like we were also planning to place around INR 500 crores with the strategic investor. So what is the status on this?

So if you look at my capital adequacy and debt-to-equity ratio, both are very, very good today. So there is no urgency today. And as I said that we are focusing on unlocking the value which has started. And we will take a call on it. That approval is available, but at a right time, right pricing. And as the cushion is available, we will wait for the best time to raise the money. There is no emergency for us to raise this money now.

The next question is from Mr. Abhinav Mehta from Sun Capital.

Why we are having so much of liquid assets within the company?

Yes. So Sanjay will explain this.

As far as RBI come up with 1 circular that is liquidity risk management framework, and as per that circular, we had to maintain the liquidity and net cash outflow to the extent of 50% for the next 30 days. And if we see over previous periods, we have converted our short-term liability into the long term to minimize the effect of maintaining the high liquidity. But still, like we have to make provision for the disbursement. Like, suppose if we are making -- projecting a disbursement of INR 1,000 crores in 1 month, then 50% of that amount, it has a multiplier. You have to multiply 115% and then 50%, you need to maintain cash to meet the regulatory requirements. And that is the reason the amount of liquidity we are keeping high, and there are some prepayments which have happened, and we are expecting some large disbursement during this quarter. And this additional liquidity will be utilized in the disbursement process.

I hope he has answered your query.

Our next question is from Mr. [ Sandeep Shah ], an individual investor.

Sir, I have a question. Please, can you throw some light on the composition part because what is the other part in the composition? Because it is more than 50% of [indiscernible]. So what is the major composition of others in portfolio of the company?

Yes. So Sitesh will tell you what is the other component.

So in the other sectors, it improved the transmission, road, port and a new area, upcoming area which we are financing that is electric mobility, water desalination or water sewage, water treatment. And the earlier loan portfolio, we also -- some minor amount is on the coal mining, which we have done 5 years back. But new -- no new growth in that. And some part of that in our state power utility, we have disbursed close to INR 2,000 crores. So this all makes together comes under the other sector under our corporate presentation.

In all these, which is the major section? That would be helpful.

So major -- total others outstanding is INR 5,000 crore. So if you take...

Sorry, your voice was breaking. So total other outstanding was 5,000 what? Hello?

So that state power utility is that -- is the highest share that -- comes to around INR 1,645 crores. That is state power out of INR 5,700 crores. Rest are related to all the infra sector, as per defined by RBI. And out of the maximum is road, INR 908 crores, and road is INR 350 crores. And then this power for the power sector or energy value chain is another INR 1,805 crores. So that is through like via initial discussion, we have told that through -- in the RE sector, renewable energy sector, we are not only giving that long term -- we are taking long term risk, we are taking long-term risk, we are also taking short-term risk with seeing the -- our good reputed and financial credible developers to that. So that consists of about INR 1,805 crores. So these are the major components of our other.

Okay. And sir, one last question. Are there some inquiries that have come in line? Or can you just mention a few? Are there any inquiries for loan? And how -- by when we can see that in loan book maybe?

Yes. Right now, as we have been said we are close to INR 2,000 crores, we have the inquiry. And out of that, most of the inquiry in -- it is in the solar, like, say, third-party or under the open access third-party PPAs there. And some of the NHAI HAM road project where they showed annuity is there. And some part is -- minor to the part is e-mobility. Again, we are looking for that, as we have done in previous quarters. In the same line, we are getting interest and we have got some inquiry to sanctions. So all this together -- and of course, our traditional wind sector and the long-term solar sector where the way of the counterparties, NTPC or SECI. We have those proposals. Altogether, we have close to INR 2,000 crores, which we are working actively.

Okay. Sir, and just one last thing. When can we expect to see this in the books?

Next to -- some proposals take some time, but which are -- which is the easy -- the low-hanging fruits, like NTPC and the things. So this will -- we will try to quickly sanction within this quarter. And it is not the -- today, date is not the stop that we will not take any further inquiry in this quarter. So still inquiry keep on coming to us. So this INR 2,000 crores is a notional number, it may go up further. By end of the quarter, you'll see a bigger number and some parties already convert into sanction at the end of quarter.

[Operator Instructions] Our question comes from [ Mr. Vijay Pawar from Senora Capital].

Am I audible now?

Yes, yes. You are very much audible. Please go ahead.

Yes. I just wanted to know what is the RIDF, which is mentioned in your -- this thing -- earning presentation on Slide #4.

Yes. So a very good question. I'm glad you've asked it. And -- because, see, one of our challenges has been the prepayment of renewable, as somebody asked in the beginning. So now, see, renewable what happens is, as I said, after 2, 3 years, they go for refinancing. And either they are coming through a bond issuance or they are going through nowadays InViT is also reaching renewables. And they are either doing ECB issuance also in form of bonds. So to create a good value chain to capture this business also that if we move from my balance sheet, it goes to another balance sheet. So we create our -- RIDF means it's a debt fund. So debt fund, what happens is that the debt fund model is based on raising of bonds and issuing of bonds. So my borrower is tied for the time he subscribes to my bond. The shadow rating, which we took for RIDF before -- some time back, we have to validate it now, is AAA for us. So borrowing cost comes down substantially, and we issue bond. So we are able to retain all these customers who are sometimes doing prepayment. So they remain in our -- they don't go elsewhere. And we continue to do our own -- the way we have been financing it with bigger spreads, brownfield and greenfield projects, also projects with certain structured financing. So we continue to do that in our own balance sheet and projects which are completed, risk has come down with satisfactory operation. And we retain them by issuance of bonds. So 7, 8 years' bond, we will issue to them, and they will kind of tie up. And they will have the advantage of lower cost of capital. So earlier, we had tied up with DFID to do this. DFID is -- that's a British developmental institution. But because of Brexit, DFID had to come out. Now Green Growth Institute has signed MOU with you -- with us. And they are giving technical assistance to start this. They will also find an equity partner for us. So we are quite hopeful and bullish. And this will be RIDF in the country, and that is why government is also very optimistic and feeling very encouraged that this is happening in PTC India Financial Services.

[Operator Instructions] So there are no further questions. I would now like to hand over the floor to Mr. Karan for closing comments. Please go ahead, sir.

Yes. Thank you, Pawan, sir, for such a brief answer. And I thank each and every participant for joining over the call today. And I would now like to hand over the call to Dr. Pawan Singh for his closing remarks. Over to you, sir.

So thank you, and a very useful and value-adding question-answer session interaction we had with investors, and it is a time that we get feedback from you. And we were also encouraged by the fact that we received very positive response from investors because your feedback is very valuable to us. And what we have said, we will try to retain and demonstrate. And as I said, important for us that the provisioning cycle is over, important for us that we have reached a stage where we have maintained a business model where we have started operating on a certain spread and certain kind of margins, which is reflected in our ROA. We will continue to focus on the green because we want to be ahead of curve, and we are focusing on additional sustainability. We continue to do that. Huge opportunities are coming in this area. A lot of policy shift is happening. And the point -- one point of concern, which was there of the investors, surely, we have started addressing it by doing sanctions and disbursement and trying to handle prepayments in several ways and growing our loan book. So that part, of course -- and one of the reasons why Mr. Sitesh Sinha and Mr. Bisht are here today because I wanted them also to get feedback from the investors that they push the credit loan book, and we are able to meet your expectations. And the expansion and growth should be seen in the coming months also, apart from almost negligible provisioning cost and good margins, good profit, good ROEs. So this is what -- consistency is what we will be able to demonstrate in the coming times. The vagaries of challenges in whatever way, so that is what PFS balance sheet now will be able to demonstrate starting from the first quarter, in the base quarter first. So thank you so much for your patient hearing, and I wish you a good weekend. Enjoy yourself now that Bombay has opened up. Please catch up on whatever you have lost. Thank you so much. Thank you.

Thank you, sir. On behalf of S-Ancial Technologies, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a good evening, everyone.

Thank you, ma'am. It was very well conducted. Thank you so much.