Suzlon Energy Limited ($SUZLON)

Ladies and gentlemen, good day, and welcome to the Suzlon Energy Limited Q4 FY '26 Earnings Conference Call. During this call, the company management may make certain statements that reflect their outlook for the future which could be construed as a forward-looking statements. These statements are based on management's current expectations and are associated with uncertainties and risks as detailed in the annual report. Actual results may differ so these statements should be reviewed in conjunction with the risks the company faces. [Operator Instructions] Please note that this conference is being recorded. We will begin with the opening remarks followed by a question-and-answer session. [Operator Instructions] From the management, we have with us Mr. J.P. Chalasani, Group Executive Counsel; Mr. Ajay Kapur, Group CEO; Mr. Rahul Jain, Group CFO and senior members of the finance team. Over to you, J.P., Chalasani, sir.

Thank you. Good evening to each one of you. We welcome you to quarter 4 FY '26 Investors Call. I also welcome Ajay Kapur, who has now taken over the baton and he will take you [indiscernible], along with Rahul Jain, who we met last time. I just wanted to briefly tell you that over the last 12 months, we made different commitments and different [indiscernible] in interactions with you. And a few of those things were what we said and what [indiscernible] in a couple of minutes. First one at the beginning of the financial year, we said that in FY '26, we will have 60% of growth. That was the commitment that we made, and we are glad to say that we achieved that. Our overall EBITDA went up by 63%. Profit before tax consolidated went up by 6%. And our WTG revenue went up by 65%. So therefore, the commitment what you made is what [indiscernible]. Similarly in the quarter 2, when we were discussing the results, some of are concerned that EBITDA has fallen for [indiscernible]. And we clearly said its a one-off. And by end of the year, we will [indiscernible]. And according to the end of the year, we see an EBITDA of [ 45.5% ]. We also promised that our EPC order share in our order book, EPC share will keep increasing to 50% by FY '28. And we started moving in the direction. In Q2, we were at around 20%. Now we reached 28%. We expect it to continue to grow in FY '27 and ultimately reach 50% in FY '28. We also said that [indiscernible] is now on the momentum. And we're glad to say that its revenue went up by 22% and EBITDA went up by 60%, and it would continue to see the growth even in the coming financial year. The last point I want to say is that some of you are aware that we signed a project implementation agreement with the government [indiscernible] in [ 2015 ] under which we commissioned some projects in FY '16 and FY '17. However, it's [indiscernible] government for some time because of government change and now of after new government has come in, the [indiscernible] that in April, they've extended the [ PA ] by under 2 years. Under this [indiscernible] we have developmental rights for 2.1 gigawatts, 2100 megawatt, out of which 75-megawatt is the PPA, which was signed earlier. Now [indiscernible] now reached the [indiscernible] fixation. They asked us whether we can do convert this into [indiscernible], we said we give our consent. There is a precedent of [ FBR ] PPA tariff analyst by APRC last year. And we [indiscernible] megawatt there a couple of clients who are keen to take up this project once [indiscernible] approach. Beyond this [ 175 ], we have [ 125 ] megawatt, which will completely get monetized from June onwards in the next 6 months. This is one very, very positive development for us what happened in this quarter. These are the significant things what happened, what we promised and what we achieved. And the rest of the retail is what Ajay and Rahul will take you through. Ajay, I'll hand over this now to you.

Thank you, J.P.C. Hello, everyone. It is great connecting with you today. Many of you will know me from my earlier associations, but for the benefit of the larger group, please allow me to introduce myself. I'm Ajay Kapur, and I have joined Suzlon Energy Limited as Group Chief Executive Officer. I bring over 3 decades of leadership experience across infrastructure, power, construction and heavy industries and most recently served as Managing Director of Ambuja Cements. Talking about the industry, we are seeing a strong start to the year '27 with power demand growing 5% to 6% since April, and peak demand has already touched 270-plus gigawatt. Overall, the environment remains favorable with sustained demand growth and increasing peak intensity reinforcing the need for reliable, flexible and round-the-clock power FDRE solutions, which are being dominated. For FY '26, has been a defining year for the wind sector with installations crossing 6 gigawatt, its highest since 2017, surpassing the previous peak and clearly underscoring the strong demand revival. This momentum sets the stage for a multiyear growth cycle with installations expected to cross 10 gigawatt in the near term and reaching 15 gigawatts in the next 5 years. With 56 gigawatt already installed and a strong pipeline of SKU and PSU bids as well as C&I demand, India is set to achieve the near-term target of 100 gigawatts by 2030. Repowering also started gaining traction, and there is rising consumer interest, which gives visibility of several opportunities ramping up in the next 2 to 3 years. Now taking you through the business highlights. In FY '26, Suzlon transitioned into a scaled, profitable and financially strong market leader in wind sector. Suzlon delivered a record 830 megawatts in quarter 4 and 2,456 megawatts in FY '26, which is our ever highest delivery in India. Revenues also reached a record INR 15,679 crores reflecting a strong 50% Y-o-Y -- 54% rather, Y-o-Y growth. Order book of 5.9 gigawatt consists of 66% of C&I and PSU segment, which is fast growing. The focus now is on expanding our EPC offering, which has grown from 20% to 28% in H2, which enhances our competitive edge and further help to accelerate order book growth. Our S144 order intake has reached to close to 9 gigawatts, a strong endorsement of its advanced technology and customer trust. The Blue Sky platform launched in Spain marks our reentry into European and other export markets with S175 and S163 turbines. These next-generation high-capacity turbines are designed for diverse wind regimes, delivering higher yields improved reliability and lower LCOE by positioning us to tap both repowering and new build opportunities globally. 4.5-gigawatt manufacturing capacity fully operational, expanding footprint with 3 AI-enabled smart blade factories to drive efficiency and scale. Suzlon commissioned 744 megawatts in FY '26. And another 971 megawatt is directed, taking the number to 1,715 megawatt shows the trajectory of commissioning growth for the future. We have achieved ramped up commissioning momentum with 332 megawatts in quarter 4, and this trend is expected to continue in FY '27 pursuant to operational excellence we have done in the last few quarters. Our OMS business remained strong with 15.7 plus gigawatts under management in India and machine availability consistently above 95%. Renom's AUM is consistently growing on the back of steady fleet additions and a healthy auto pipeline. Forging & Foundry continue to scale strongly. The revenue at INR 597 crores, up 22% Y-o-Y and EBITDA at INR 119 crores, up 61% Y-o-Y, which continued momentum driven by domestic demand and export growth. Now I invite Rahul Jain, our Group CFO, to take you through our financial performance.

Thank you, Ajay, and good afternoon, ladies and gentlemen. I will be using Slides 18 to 25 of our investor presentation, which has been uploaded on our website as the reference point for my discussion during the presentation. In Q4 FY '26, Suzlon continued its exponential growth trajectory delivering 830-megawatt, highest-ever India delivery for any quarter with all financial parameters, showing a strong uptrend. Suzlon reported consolidated revenue of INR 5,468 crores in Q4 FY '26 with EBITDA reaching INR 964 crores, a robust 39% year-on-year growth with PBT of INR 833 crores and with a PAT of [ INR 1,114 ] crores. For the full year FY '26, deliveries grew 58% to 2,456 megawatts. Strong execution momentum drove revenues up to INR 16,679 crores, up 54% Y-o-Y. The WTG segment revenues grew 65% to INR 4,040 crores, with contribution margin at 24.5%. Consolidated EBITDA increased to INR 3,022 crores reflecting a strong operating leverage with 63% Y-o-Y growth. EBITDA margin expanded to 18.1%, up 100 basis points Y-o-Y. PBT rose 67% to INR 2,422 crores with PAT improving to [ INR 3,153 ] crores. Let me also say that, that includes a deferred tax asset recognition of INR 742 crores for the year FY '26. We are pleased to report that our balance sheet as of March '26, reflects the position of exceptional strength with consolidated net worth of INR 9,464 crores. Our net cash balance at INR 2,384 crores further enhances our financial flexibility and resilience. We also have adequate working capital limits tied up for execution of the current order book. Our end-to-end wind energy model supported by an integrated supply chain, strong execution and industry-leading service provides a competitive edge that is unique and difficult for others to match. With this, I hand over the call to the operator and open the floor for Q&A. Thank you.

[Operator Instructions] Your first question comes from the line of Mohit Kumar with ICICI Securities.

A good set of numbers. Sir my first question is order inflow has been very, very good for the year, but for the quarter, it seems to be tired, muted. How do you think about from the opportunity perspective for the fiscal year '27, is it fair to assume a decline for a couple of quarters before the order book picks up [indiscernible] again?

Okay. Mohit, as you've seen, we are more or less closing at the same order book as we started the year. You would have heard J.P.C talking about our AP project, where we have a very good pipeline of -- in our new model of DevCo. We are getting very good responses. And I can assure you that the order pipeline and the discussions that are currently underway, I think we should not have an issue. Our opening book was 5, and we are closing at 5.9. I think that is not a concern. I think it should be fine.

Mohit, just to add to what Ajay said, as we're moving now from [indiscernible] to most of the EPC contracts, EPC contracts take a little longer term to close in terms of contracting, there because multiple contracts. We are offering the sites to them, they will do their wind assessment and then start discussing [indiscernible] land agreements update [indiscernible] update. Right now, we are in advanced stage, and I think you will significantly start hearing from [ June ] this quarter, the EPC sort of getting closed. So therefore, I don't think there will be any downward trend in the couple of years -- a couple of quarters, as we mentioned, it will continue to be there. It's truly because changing over to EPC, it's taking a little longer time to close [indiscernible]. You will start hearing from June.

I understood. My question on the PSU opportunity. We were going to the NTPC green slide deck, which is available in the public domain and they were talking about adding 6.6 gigawatts, which is part of their contracted plus [ an ] added pipeline, right, out of which I think barely have tied up maybe 1 gigawatt [indiscernible].

So order intake has reached close to...

[indiscernible] Mohit [indiscernible] having a separate contracts for redevelopment in [indiscernible] and then 3 WTG is turbine supplies. So that's what our contracts are [indiscernible] now. That's not yielding good results in terms of cost execution. So they are now moving -- we understand they're now moving towards a [indiscernible] contracts. To start with, they already come up with some 215-megawatt contract [indiscernible] we also understand that when we come out the [indiscernible]. We have a significant pipeline now moving away from [ speed ] contracts and EPC contracts. Therefore, obviously, we are strong in PSU, especially if you say -- EPC contracts, you would know that we would be much better off. So I think the [ speed context ] was making the capacity [indiscernible].

Understood. So you expect that to pick up as you go along the fiscal, right?

Absolutely.

[indiscernible] Given as I think it is a large pipeline. My second and last question, sorry, if I may excuse me, there has been some talk about the DSM. And of course, it's not finalized as of now. But in case the DSM, the deviations mechanism for the wind gets [ tightened ], how can [indiscernible] manufacture like us can help mitigate the risk from the client perspective?

Mohit, we have been talking about this for the last two quarters, we remember, okay? Yes, the [indiscernible] coming out for wind changing it from plus minus 15 to plus minus 10. And for the existing projects as well as they said that the [ part ] is that by 2031, the -- we will reach the [indiscernible] level. And in fact, new projects are going to bid it out from first of April 2026. So right from the day 1 they'll get commission, they'll get on with [indiscernible] While there is [ a stay ] currently. But I think this is one which is in our opinion, would happen for simple reason because [indiscernible] at the number of days, the [ LNG ] meeting -- meeting of demand of energy. I'm not talking about the megawatts is [indiscernible] crossing 50%. [indiscernible] becomes important, we sell more. And as far as we are concerned, we said earlier that we developed a strong [ stimuli ] forecasting model, which we're testing [indiscernible] plus minus 15% we are now quickly more into making it plus minus 10% in moving ahead. And we would use this as an opportunity for us as an additional service to provide [indiscernible] forecasting so that the [indiscernible] significantly go up.

Is it possible to use this model to [indiscernible] use this model to help the existing client set [indiscernible]?

Absolutely. We can start doing that. We -- in fact, we had done for a number of our projects, what will be the impact of this plus minus 10% plus 15% plus minus 10%. And elsewhere in the world, Mohit, the significant improvements happen in the predictability of the wind. So there will be some other and we're going to collaborate with few [indiscernible] people. And this is [indiscernible] for the sector, not just us as well. This is important for the sector to grow. So we will play a key role in [indiscernible] and forecasting.

The next question comes from the line of Nikhil of Kizuna Wealth.

Sir my first question is on the line of -- last two quarters, you used to cover the execution progress. This quarter, you haven't provided that. So can you update us on what is the execution progress this quarter?

Okay. Thanks, Nikhil. I think if it's not there, we will have it provided. But the good news is, as you have seen from my opening comments, we have delivered a record commissioning. I also mentioned there are almost 975 megawatts of turbines selected and not yet commissioned. Of those, almost 350 are just ready for commissioning. They are just [ fitting ] for the last mile because this is on the customer scope. So I'm very actually very happy with the progress we have made. I'm very positive that going forward, this pace will only improve at a much, much faster [indiscernible].

Sir my next question is, can you [indiscernible] the guidance for the next [indiscernible] FY '28, how do you perceive the order flow will happen in the industry? And how will Suzlon benefit and more of all European venture like why start that European [indiscernible] right now? Not prior to that, if you can provide the vision for the [indiscernible]?

Okay. So you're asking 3 questions. So let me start first addressing the fundamental one. On the demand side, if you see, over the years, in FY '23, the industry did 2.3 gigawatt of installations, which went up to 3.3 in FY '24 further went up to 4.1 in '25. And as I mentioned, 6 gigawatts in FY '26 is the record year. Our numbers would be more or less plus/minus if you can give some leeway, 8 gigawatt in '27 and maybe 10 gigawatt in '28. I also mentioned that FY '30 or 31, we should be looking at around 15 gigawatts. There is a very strong demand coming from wind as the industry moves towards FDR. The solar peaking out in the morning, in the evening is when wind really works factoring in many cases there, but [indiscernible] not generating. So to that extent, I think the demand is very good. I was there along with my colleagues in the Madrid Wind Europe conference, where we had opportunity to launch our new Blue Sky product range, which I mentioned. Of course, it will take some time for that to [ fortify ]. But around the sidelines of the conference, we met lots of developers, and utilities. Most of them are very excited to work with us, surprisingly on our 2-megawatt and 3-megawatt series and also the newer ones. They want -- and Suzlon is very well known globally, as you know, over the years. We have a legacy there. We still have our fleet there, and we still have offices across the world. So we want to scale it up. It's a great market opportunity. We feel in the next couple of years, this will become one of the big revenue driver and a bottom line driver. We'll talk about it more at some other opportune moment. I think on the order book, Mohit had already asked and I think between me and J.P.C, we had tried to give you some guidance. Other than that, if you want some more specific ones, we can separately connect with you.

The next question comes from the line of Sumit Kishore with Axis Capital.

My first question is on your cash flows. So basically, if you look at your operating cash flow, it's about INR 12 billion for FY '26 versus your EBITDA of INR 30 billion. So could you please speak about the increase in working capital and receivables and whether there are any provisions for doubtful debtors?

Okay. Thank you, Sumit. I think there is -- the way I would look at it, our cash flow from operations has improved significantly when you look at it from an overall basis. Working capital is predominantly recently available buildup as primarily due to the PSU contracts. However, this was anticipated and factored into the tender pricing as well. The silver lining really is the -- substantial going forward as well. So yes, there is something, but overall when I look at our overall cash position has improved only. So data around that is INR 400 crores plus. So I'm actually pretty happy to see some positive momentum on that side as well. So that's how I would really look at it. Sumit?

Sure, My second question is after [indiscernible] came almost 60% plus growth at the EBITDA level in FY '26. How are you looking at the WTG deliveries contribution margin and specifically your growth outlook for FY '27.

Sumit, I'll comment here. Just as I was telling Nikhil, I already gave you our idea that next year market can be anywhere between 8 to 9 gigawatt. Suzlon has also mentioned that a very high amount of turbines erected, not commissioned, so that should help us. I also said that our closing or opening order book and also recently, we got a [indiscernible] order. We have already seen about it. We are already sitting at almost 6 gigawatts Mr. J.P.C highlighted right in the beginning, a great opportunity emerging from our forward-looking strategy. We'll also talk about it more in the coming days. on development pipeline. At any given point of time, we are sitting on about 25 gigawatt of assets across the nation of which 8 to 10 are very much better date. And of those, some of them J.P.C mentioned to you. So I think our teams are engaging with the customers. I'm very positive on the future. But I think beyond that at this moment, I would not like to venture into giving absolute numbers other than saying that the trend is already very positive and strong.

Thanks for -- just one small point. Last year, at the end of the financial year, you had done a small cleanup exercise on the order book in terms of the nonmoving orders. So there hasn't been any such clarification this time. So is there any nonmoving or slow-moving order in your 5,892-megawatt order backlog?

Sumit, as of now, there is nothing of that sort. And as management from time to time, we will undertake such actions, which are, I think, very mature and our order book is very healthy. In fact, I would stop at that. Our -- I mentioned our S144 platform, the [ 3x series ] I'm really excited, 9 gigawatt of orders, I think it's one of its kind, and still receiving fantastic response. I was quite thrilled when I went to Madrid when I met people across those 2, 3 days. Very, very active pipeline of some of the leading developers, top companies, and they want to also shake hands with us. So I think in time to come, that will also help.

Your next question comes from the line of Abhishek Nigam with Motilal Oswal.

So first question was on the FDRE, which J.P.C. mentioned in the opening remarks, so are you seeing more such conversions of products in the FDRE. If you can speak about that? So that will be my first question.

Okay. I request to J.P.C, with his wisdom and deep knowledge of the industry to guide us on this.

See, the bids, whether FDRE or RTC or the pure wind, these digital [indiscernible] depending upon which state has sort of a current generation profile and the load profile. While FDRE will continue to be there. I mentioned FDRE with respect to the [indiscernible], what we signed for so and so a different megawatt way back and which came for [indiscernible] regulatory, and they asked us whether we would be willing to convert into FDRE, which we said yes. In fact, if some of you may know that in last financial year, [indiscernible] approved one of the FDRE bids of 400 megawatts with 2 hours peak, 90%, 90% that was [indiscernible] 60% [ CES ]. They're looking at something of this nature. But [indiscernible] sector-wise, if you're looking at it, we are also seeing uptick in pure bids coming in, both at center as well as state level because there was some gap because solar went up and then they now realized big. Honestly, if you look at in the recent past, the peak, which as I mentioned, 270 megawatts, which was [indiscernible] and -- but even in peak if continue to be at [ 250 to 250 ] megawatts, and it's continued to [indiscernible] midnight. And if there is a contribution from the point of it at 270-gigawatts peak was there in that, the solar contributed 22% and 5% in wind during the daytime. I mean the evening peak when it was 250 gigawatts solar was 0 and wind was 21%. So therefore, now we can clearly see that the wind contribution is increasing. So therefore, that's the reason we're also seeing increasing -- in mixed. But I think it's clearly whether FDRE comes or the RTC comes or [indiscernible] comes, it all would depend upon state to state [indiscernible] generation mix.

And second question is there has been a lot of depreciation of the Indian currency then in rupee of late. Is there a need to take price hikes to maintain margins [indiscernible]?

Abhishek, I will comment here. Some of our contracts have a pass-through with respect to the foreign currency impact that comes through, right? Again, while there is a geopolitical situation that is prevailing as of now, we are always on a customer management drive to be able to reduce our cost to deliver better value to our customers. Yes, there is an impact but again, with our cost management right, we've been able to mitigate that impact to a very large extent is what I would say. For the future, obviously, when we think about newer contracts, it will get pricing based on the newer, let's say, exchange rates that are [indiscernible]. I hope that answers it.

Okay. So for now, I mean margin-wise, broadly, you would think money should remain stable, not really go down in FY '27? No real pressure on that?

WTG margins, I don't think materially can go down.

Also just to add what Rahul was saying, Abhishek, we are constantly also working on our R&D and cost optimization, supply diversification and also make in India. So all the 3 things are working. And every year, we have a target of constantly cutting on cost because that's the only way you can remain resilient and our resident supply chain has helped us over the last 3 years to keep cutting costs. I'm not too sure how much of pricing we can increase, but certainly business model reorientation is what we are currently working on. And I believe with a more EPC the development company strategy, which I already mentioned 8 to 10 gigawatt of more fully ready projects. Customers are very excited to work with us because we just don't talk of [ setting ] for today, but we are actually talking of helping them build their projects for the year '28, '29, '30. So I think that's where the price is important and which also [indiscernible] in the beginning when a question was asked that the order book has been -- it takes time when you do these kind of development projects because it entails a series of combination of contracting but I'm very happy that we have a team in place. We have a structure in place and we have a business model. We are now pushing actively this year. That should help us mitigate a lot of our cost at the same time, keep building our pipeline going forward.

Your next question comes from the line of Prakhar Porwal with AMBIT.

My first question is on the exceptional items that we see. One is in the consol statements of INR 70 crores. You've mentioned that it is lean on settlement of contractual matters. So is that in the OMS business? [indiscernible].

Prakhar, to answer it simply, no, it is not in the OMS business, it is largely [ SE4 ]. Actually, it is [indiscernible] it was a whole arbitration matter that got settled in our favor.

Okay. So also, second question is on the [indiscernible] order. Given you mentioned DevCo, you have already done around 725 megawatts back in 2016, '17. So wanted to just understand how -- I mean, I know the DevCo model, but -- so given you mentioned it is now getting converted to FDRE, what will be the scope that [indiscernible] will do, will it be entire FDRE solar -- wind, et cetera, development? Or you will do the wind parks, which will be your similar WTG model that is [indiscernible]? Just wanted some details on the [indiscernible] given this will be [indiscernible] co-model after our -- I mean transition to the new business model, right?

Sure. J.P.C Would you like to?

Yes. Let me just clarify that the -- as far as [ under position ] is concerned, way back in 2015, we signed what is called a positive implementation agreement where [indiscernible] given us rights to develop [indiscernible] projects. we've done some capacity of it in FY '17 and FY '18. And at that point of time in FY '18, they also signed a PPA for 775 megawatts saying the tariff for this project will be fixed by the regulatory commission. But nothing much happened when -- in between the [indiscernible] came in. It [indiscernible] impact here. Now what we are talking about is not just the 775 megawatts, we're talking about totally 2.1 gigawatts of [indiscernible] the government recently approved extension of the [indiscernible] another 24 months. So we are right to develop 2.1 gigawatts where the planned [indiscernible] are fixed and then the agreements are signed with net cap. Out of the 775 megawatts, there they are willing to get PPA. That's the only difference. Balance is we can -- we are not responsible for taking the power offtake and which -- so therefore, they had converted you to our normal [indiscernible] contracts. With 775-megawatt FDRE once the PPA [indiscernible] there are a couple of clients who are willing to take over that as a PPA, along with the [indiscernible] PPA and we have an option to -- now we have options. We have intention to supply the entire FDRE rather than just the wind portion of it. So because now we are indicating in the full [indiscernible] so that is what is the arrangement as and when the tariff gets finalized for this project by PRC and one of those clients will finalize where they will -- on the project, and we will do a complete FDRE supply and as well as services thereafter.

So that is on [indiscernible] in the balance point on the remaining part...

Balance. Yes. Balance we're already converting into EPC contracts with a given [indiscernible] various clients. And as I said that at the beginning, we would see this from June onwards next 6 months the entire [ 13-megawatts ] would be converted into from EPC contracts.

That will be on a debt [indiscernible] where you do the entire part and you -- I mean, sell it on a year term basis?

A little bit. I don't know what you mean by [indiscernible]. We will provide the right from land to the entire project commissioning on EPC on a currency basis.

Okay. And just lastly, on margins and commodity inflation. I know Rahul said he mentioned you'll be able to maintain margins. But given steel is a big component, if you can maybe qualitatively tell what type of measures would help -- I know there are pass-through clauses, but not all contracts have those, so what all levers do we have to maintain margin [indiscernible].

Abhishek, steel is largely a pass-through other than maybe some PSU contracts. So I'm not really very worried upon steel. I mean, like I said, we should have a fair capability of maintaining margins where we were exiting. But obviously, there is -- this is an environment that is also volatile. So let's say, there or thereabouts, we should be in good shape.

Just to add to what Rahul mentioned. Also, as we sell more of our turbines, we are able to renegotiate better rates on our diversified supply chain. I mentioned that 9 gigawatt of S14 order book as it gets into COD [indiscernible]. So that gives our procurement and manufacturing teams also to renegotiate with the suppliers on the back end because there's a constant battle [indiscernible] and also then the level leverage effect as we grow. So those are some of the other things we are working. We are also constantly doing value creation besides just negotiation.

The next question comes from the line of [indiscernible] Ventures.

For the [indiscernible] numbers, this year, we did, I think if you leave the [ 171 ] windmills, which are directed but not installed, we did a number of 744 megawatts this year. Sir, when do you see this momentum changing like installations being more than the [indiscernible] so that the pending installations will start coming down?

So basically, if you see the growth is substantial. If you just see last year same quarter and also, as you know, last quarter is always a bigger one. In [ RR ], we did 573 versus that, this quarter was 830, which was 45% improvement. Last year, at the same time, I think it was also an industry-specific issue. We did 95 and this year, same quarter with 332, that is 250% improvement. On top of it, there are 350 turbines at a megawatt, I mentioned, is already ready just to plug in for want of the customers readiness. I think the momentum is good. Over the last couple of quarters, we have also rejuvenated our entire line organization. There are some decisions we have taken in terms of reorganization there. which are already yielding very positive results. We are also running drives to improve the fundamental blocks right from land to erection and before election foundation. So I'm seeing a very good traction. I believe this trend will continue. And Rahul is also driving at his level, along with his teams drive on how we optimize our working capital. And for that, we need to pull the commissioning and also close accounts. So that's the way you can recycle your money, which is in the working capital. So we are very, very focused on this. I'm sure in coming quarters, you'll only hear a very good positive traction by us on this.

Sir, just a suggestion, if the management finds it always, you could think about announcing the monthly installation number. The market finds it very -- the entire stock price is very jittery based on the installation progress. maybe we cannot like maybe we're activating for a quarter, the installation numbers can be given if the management [indiscernible].

[indiscernible] I hear you, but I think, as you know, some things you can do it, some things you don't want to do it to build something. But look, I hear you. I can only say that. Rahul do you have something to say?

Yes. Actually, I just wanted to add to what Ajay is saying. We've heard you. I think there is some merit in it, but we will have to evaluate the position internally and then think about how do we manage it. So -- but thank you for the suggestion.

Right. Like for my second question is are there any development on the solar and best side, we wanted to move to those levels. Any acquisition here in finalization or anything going on at [indiscernible]?

So as of now, answer to your second question, no, there's nothing around on the corner. Answer to your question number one on solar best. J.P.C, already mentioned that we are getting into FDRE. As we get into it, start signing contracts with our customers, we'll start announcing these. But yes, that's very much in our agenda. But what strategy, asset-light versus investing, that's something we'll talk to you in time to come, but not today.

Okay. If I can squeeze just one more question. Okay. So like is it best to say that it is the most probable scenario is that Suzlon will do 2,500 megawatts next year also?

Now you're putting words in my mouth.

is that the most [indiscernible] scenario?

You're talking of installation or you're talking of RR?

Generally, sir.

We cannot give you that number, as I mentioned. But certainly, we can have a discussion whenever you want to. I can only tell you what we are doing on the leading indicators, which are going to help the lagging indicator, which is delivery.

And again, you just want to quickly answer that as well?

No, I would only say please look at the past sense, 100 to 1550, 1550 to 2456. So therefore, I just want you to consider the trend, and we expect the positive trend to continue.

The next question comes from the line of Shweta Jain with [indiscernible].

Most of the questions have been answered. Just one on the co-development model again to get the EPC visibility. Where are we -- like last time, I think we had interacted, we were talking about 22 to 23 gigawatts kind of a development pipeline, of which I think 7 gigawatts were at advanced -- different stages of management. Could you throw some light on where those projects are? And has this pipeline moved anywhere?

So again I request J.P.C to kindly guide us on this.

Yes. I think we start on, Shweta, we've talked about [ 2020 ] gigawatts of identified sites and about 8 gigawatt development that work is progressing. And some of them are now getting converted into contracts. Some cases, the land acquisition is under progress. Some places, we signed the land [indiscernible], but we are also now converting them into EPC contracts. There is a progress happening, and then we would keep increasing this 8 gigawatt further. As soon as some contracts get signed, then obviously, we'll keep adding more to it into the active development phase. But this is what clearly is going to be our engine for growth in the coming years. And [indiscernible] I think this is going to be [indiscernible] for both the sector because the execution is becoming a major challenge. And this will actually unlock that execution challenges. So we obviously -- you're already seeing that some of these orders getting announced through this...

So by when do we see this announcement happening?

No. See, we don't announce the land contracts. We only announce [indiscernible] EPC contracts. There are some land contracts signed there acquiring [indiscernible] the model I clearly explained earlier that we will start acquiring the land wherever we see a high visibility of sale of the site. And so we try to [indiscernible] as we said, we only announce EPC contracts. We are getting converted into EPC contracts and which we will start seeing the -- as early as -- and in fact, we announced some of them like the one which we announced [indiscernible] versus coming out of [indiscernible] only, and EPC contract but we announced [indiscernible] and you've also seen some contract announced from soon onwards.

And then when you announced the EPC contract, we don't announce it [indiscernible] development pipeline. That's why you're not seeing [indiscernible] but it's coming with -- that contract itself is [indiscernible] contract.

And just to add to J.P.C, Shweta. I think as we go out in time, you will see more announcements around it as well.

Got it. But this 22, 23 gigawatts remain as is for now?

Probably slightly higher.

It won't [indiscernible] never remain that way [indiscernible] that number will have x amount of sites. Some sites get signed, some sites get added. As you know that every year, we keep adding new [indiscernible] and we be collecting new data. And we also map the likely substations coming up in the future, okay? And we also map, which are the sites which can easily get converted into co-located big projects. So on that basis, we'll keep adding to this. It is a dynamic situation. So it will never remain static.

Our next question comes from the line of Mahesh Patil with ICICI Securities.

Most of the questions answered, just one question on the Q4 [indiscernible] on the reported cash that for the quarter is about INR 281 crores. That's the number to be adjusted?

I'm sorry there is background noise, we can't hear you well. Can you just repeat the question, Mahesh?

I'm saying in the EPC contract that we are doing, the transmission part will also [indiscernible]. Is that correct?

J.P.C would you like to answer that?

EPC contracts normally we do the land supply erection and the [indiscernible]. And in some cases, we also [indiscernible] substations. Very really extremely rare cases, but very, very rare, we take up the transaction [indiscernible] but that's extremely there. So most of the contracts will have between the plant boundary and some will have less between substation extreme rare cases [indiscernible].

Next question comes from the line of Nikhil Abhyankar with [ UTI Mutual Funds ].

I just want to understand about the CapEx guidance you spent almost INR 550-odd crores last year. So any turn rate CapEx that we can assume over the next 3, 4 years?

Yes. So Nikhil, as we expand our capacity to participate in the demand, which I mentioned already to you all. We would have a run rate of about INR 600-odd plus minus 50 going forward.

And sir, what is the current capital deployed for the DevCo? I mean you had a certain threshold beyond which you wouldn't grow. So what is that threshold and how much have we deployed right now, if you can?

J.P.C, you want to handle that?

Yes. I think as all of you know, we said -- we talked about [indiscernible] INR 300 crores of the [indiscernible] and then as we move ahead, depending upon how the model develops and in case we also want to get into connectivity, then we will be needing some non-fund-based facility.

As of now, the number is in the range of about 300, 350. But yes, what you are saying is absolutely right, J.P.C. So as we go on, we will see some more working capital needs on that side.

Yes. So there are [ additional ] parts coming up -- some states [indiscernible] parks. And we are also working with government of India for a possibility of changing G&A regulations so that we can develop [indiscernible] with connectivity, which is transferable. So as and when those things happen, obviously, that they will be more required, but those will all -- would help us to grow the business.

Sir. And just a final one, how much tax asset [indiscernible] remaining? And what should be the expected tax rate, say, in the next couple of years?

Okay. So again, the deferred adjustment that you've seen until now are largely [indiscernible] recognizing certain deferred tax assets. Given our current run rate, we believe that there is -- for the next two years, only the deferred tax charge will come into the profit and loss account, which is also a noncash charge. Rough estimates on this are in the range of about INR 3,000 crores to INR 3,500 crores in terms of unrecognized deferred tax asset.

Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to the management for closing comments.

Thank you, everyone. We look forward to remaining in touch in the coming days and sharing with you the progress of the company. Have a good evening. Thank you.

Thank you, and bye-bye.

Thank you. On behalf of Suzlon Energy Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.