Torrent Power (NSE:TORNTPOWER) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Torrent Power Limited 2Q FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikas Pohdar, Executive Director and CFO of Torrent Power Limited. Thank you, and over to you, sir. Thank you, and good evening to all of you, and thank you for joining Torrent Power's quarter two earnings call.

0:49 I will begin with a review of our financial and operational performance for the quarter, followed by an update on key growth initiatives and projects under implementation. We will then open the floor for questions. So let me first discuss the company's performance at the PBT level before covering the tax expenses for the quarter. So reported profit before tax for the quarter stood at INR $11.31 crore compared to INR $9.79 crore in the corresponding quarter of previous year, representing an increase of INR 152 crores, which is a 15% growth year on year. Profit before tax for the quarter includes the following nonrecurring credit of INR 123 crores on account of indemnity income received by Naba Power from seller with respect to mega status claim to the tune of INR 115 crore.

1:42 This is in accordance with the provisions of the share purchase agreement under which any liability arising from mega status claim is recoverable from the seller. Then secondly, unwinding of LNG related hedges in relation to the IOCL LNG procurement contract. The unwinding was done considering force majeure announced by IOCL, resulting in a gain of INR 52 crore during the quarter. There was also a liquidated damage and write off of charges paid on termination of SECI 12 project of INR 44 crores. The profit before tax for the corresponding quarter of last year includes nonrecurring credit of INR 31 crore on account of receipt of favorable order in our license distribution area, primarily relating to the grant of carrying cost.

2:29 Excluding the impact of these nonrecurring items, adjusted profit before tax for the quarter stood at INR 1,008 crore as compared to INR $9.48 crore in the comparable quarter of previous year. That was an increase of INR 60 crores on adjusted basis, which was a 6% growth year on year. The tax rate for the quarter stood at 26% compared with 24% in the corresponding quarter of previous year. Business wise factors contributing to performance of business segments are as follows: Our thermal generation business delivered a resilient performance despite elevated gas prices driven by the geopolitical developments in The Middle East. Adjusted for nonrecurring item in the current quarter, EBITDA was higher by INR 83 crore, primarily on account of the first full quarter contribution from Nava Power acquisition, contributing INR 142 crore to EBITDA during the quarter.

3:27 Adjusting for lease accounting followed in Nava Power Limited, the EBITDA for the quarter stood at INR 196 crore. This was partially offset by lower merchant power realization by INR 55 crore. Despite elevated gas prices during the quarter, the company maintained healthy operating margins in its merchant power operations. Moving to Distribution and Transmission. The Distribution and Transmission segment contributed INR 99 crore to EBITDA during the quarter, driven by improved contribution from distribution operations by INR 76 crore, supported by the increase in ROE on account of capitalization of assets and higher rate of return on equity as per the new tariff regulations and other incentives. There was also improved contribution from distribution franchise business on account of improved volume by 3% and T and D efficiency across all franchise business.

4:24 The newly commissioned transmission project contributed INR 22 crore to the EBITDA. Moving to renewables. The renewable operation contributed INR 148 crore to EBITDA, driven by improved PLF across wind and solar power plants and newly commissioned capacity. There was also increase in depreciation and finance cost, which lowered the profit before tax by INR $2.70 crore. So the increase in depreciation on account of higher capitalizations in renewable segment, and we also faced increased finance costs on the back of Nava acquisition and higher capitalization. Overall, the quarter reflects continued operational resilience and disciplined execution across our portfolio despite a challenging external environment. So this completes the explanation of financial performance during the quarter.

5:11 I'll now move on to providing update on the various projects under implementation. The renewable energy projects of two forty megawatt feet got commissioned during the quarter, taking the aggregate installed generation capacity of the company to 6.8 gigawatt as on 09/30/2026. This was comprising of 2.7 gigawatt of gas, approximately 1.8 gigawatt of coal approximately 2.3 gigawatt peak of renewable capacity. So on the renewable energy, during the quarter, the subsidiaries of the company received LOA for three new wind projects for a period of twenty five years. 100 megawatt from SJVN at a tariff of INR 3.89 per unit, 150 megawatt under SECI 20 at a tariff of INR 3.85 per unit and two fifty megawatt from MPP MCL at a tariff of INR 4.16 per unit.

6:09 Further, as on September 30, the renewable energy projects of 4.4 gigawatt are under implementation, which are expected to be commissioned progressively, about one to 1.2 gigawatt in FY 'twenty seven fiscal, 1.4 to 1.6 gigawatt in the next fiscal, which is FY 'twenty eight and the balanced capacity by FY 'twenty nine. CapEx of INR $18.50 crore was incurred during the current quarter against INR $15.50 crores in the previous quarter and INR $16.30 crores in the corresponding quarter of last year. Of the total CapEx of INR 30,600 crores for the renewable projects under implementation, a cumulative CapEx of INR 10,000 crores has been incurred up to 09/30/2026.

6:56 In FY 'twenty seven, a total CapEx of approximately INR 10,000 crore is expected to be incurred for renewable projects compared to INR 6,500 crores approximately in FY 'twenty six. Moving on to the implementation update for the Anupur thermal power project of 1.6 gigawatt. The activities are underway as per expectations, wherein major milestones achieved during the quarter were executed of BTG and the BOP contracts. The total CapEx of INR 800 crore has been incurred up to 09/30/2026. Within transmission, the transmission project at SolarCourt is under implementation and expected to be commissioned this year. Cumulative CapEx of INR 400 crore has been incurred up to 09/30/2026. The further details on pipeline projects have been summarized in our latest investor presentation that is now available on our website.

7:46 So that's all for this quarter. And wishing everyone a very happy Diwali and wish everyone a very safe and healthy holiday season ahead. I would now request the coordinator to open the lines for question and answer, please. Thank you. Thank you very much. We will now begin the question and answer session. Questions. The first question is from Mohit Kumar from ICICI Securities.

8:39 Go ahead. Yes. Hi. Good evening, sir, and thanks for the opportunity. My first question is that can you help us with the operating EBITDA and accounting EBITDA for the Nabapower during the quarter? I know that you mentioned, but I think I missed it, yes? It's INR 142 crores. Is that accounting EBITDA or operating EBITDA? So this is as per the lease accounting, which is being followed at Naba Power. If I consider a PPE accounting, then it would be around INR 196 crores. INR $1.96 crores. Understood, sir. Can you please help us understand the EBITDA increase in generation Q o Q during this quarter? There's a sharp jump, right? I do understand this is a one off. Can you please help us?

9:30 Q o q. Yeah. Sorry? Sir, the generation, the segmental EBITDA has grown from 3,700,000,000 in q one FY twenty seven to 7,100,000,000 in q two FY twenty seven. Yeah. Can you just break this up with the... In the merchant? How much how much they do? What... Can you just help us with the the the momentum the EBITDA sequentially? So basically, if you look at Mohit, I think because we he alluded to the one off item of INR 115 crores in Nava, which is getting captured in the EBITDA. So if you remove that, then all of the businesses have performed according to expectations. My last question, think there is a there is a on the renewables portfolio, the EBITDA margin is lower, I think, primarily because I think one of the reason is I think you delivered damages you should pay it, right? That...

10:30 Yes, that's right. Is there anything else? Is there anything else? No. So if you address INR 44 crores, then I think we have a pretty healthy EBITDA margin. And let me tell you, we have one project, which is operationalized, which is air power, wherein we are selling into the merchant market, the wind project, and the realizations are very good there. So effectively, our EBITDA margins will increase going forward. Understood. Last question, how much the merchant unit sold in the quarter and realization and the spread if possible? So you want MUs, million units? MUs, MUs, yes. So during the quarter, MUs were around five thirty MUs.

11:17 And if I look at per unit realization, it was around INR 24. Any ideal spread? Any idea on the... Sorry, come again. Sir, any color of the spread? The spread, how much spread you made in the merchant? Spread would be somewhere in the range of INR 4.7 to 5. Understood. Thank you. Thank you all the best. Thank you. Thank you. Next question is from Sumit Kishore from Axis Capital. There were a lot of details shared in the opening remarks. My line dropped in between.

12:05 Just wanted to check if you can share the full quarter revenue for Naha. I heard about the EBITDA of 1,420,000,000 as per lease accounting. Obviously, there'll be no depreciation, but what is the interest impact on Naha? And so maybe and what is that close to the recurring amount we are likely to see in terms of EBITDA contribution of 1,420,000,000 Is that the clean number that we should expect going forward? So I think, Sumit, your first question was in terms of revenue in Nava in Q2, right? That was only INR 800 crores.

12:51 But I think we should look at more from an EBITDA perspective, this being a two part tariff PPA. Think the full cost increase will increase my revenues and vice versa. So I think we should look at on an EBITDA basis. Now I think that your second question was with respect to the recurring EBITDA is what is. So if I look at it on a lease accounting basis, we recorded EBITDA INR 142 crores. But if I look at from a normal accounting perspective, which all of the power plants are being done, it is around INR 200 crores. Yes. So it will be difficult for you to annualize that. But I think when we acquired this Nava Power Fund, we had stated recurring EBITDA should be around 1,000 crores for the full year, which we expect should we should be getting on a full year basis.

13:44 Okay. So but when I am accounting for it in EBITDA terms, from a P and L standpoint, I should include maybe what around 700 crores or so? So 54 crores was the capital charge, which is not getting accounted for. So you can annualize that part of it. Okay. What is the amount going into interest, which is pertaining to the Nabha Power project? Interest in the sense, the debt which you have borrowed? Yes, yes. Interest. What has got added to interest this time with the acquisition of Nava?

14:30 So okay. So Nava itself has an interest cost of around INR 70 crores. And on top of it, we also borrowed to acquire an entity, which will be again around INR 70 crores. Okay. And could you sort of help with the other income numbers? What is the one off hitting in other income, which has been reported of INR $2.49 odd crores? So there are two parts to it. One is INR 115 crores, which is the indemnity which we have received from the seller. And the other part is unwinding of hedging, which we have done, which is around INR 52 crores.

15:19 This is unwinding of hedging for what? So we had an IOCL LNG contract, wherein because of this geopolitical tensions, there was a fourth major invoked by OCL. And what we have done was we had hedged this gas basically on the brand side because it's linked to brand. We have done hedges to hedge the brand, which we unwounded because of gas not being supplied. Okay. Okay. And sorry, if you have already mentioned this, could you briefly repeat what was the merchant contribution deviation Q2 from last quarter to this quarter?

16:11 55 crores lower. Lower, yes. 55 crores lower. Correct. Okay. Okay. And you mentioned something about a SEKI where you have to take a project out in the opening remarks where you have paid some termination fee. What is the size of that project? And what are the details? So that was SEK 12 project, which was 300 megawatt wind project, which we terminated because of which there was an outflow of INR 44 crores during the quarter. Why was it terminated? What is the background? So basically, there were a lot of delays with respect to evacuation challenges.

16:59 And then also the tariff also was not that cool. But because of mainly because of evacuation challenges, we had to terminate the contract. And this was at LOA stage? No. On on the PPA stage. Oh, PPA project can be terminated. So what is the rule here? I mean what how can you terminate the PPA? So what is the breakup fee? We paid does the liquidity damages, right? So we paid around INR 40 crores of liquidity damages. The The next question is from Satyadeep Jain from Ambit Capital. Just a follow-up question to this, I think, SEK 12, SEK 13 project, the tariff was, I believe, 2.97.

18:05 So there were... If we understand correctly, there were connectivity delays, and you chose to pay the termination charges. So you'll run it on merchant now and maybe convert into another PPA later on. Is that the thought process maybe at higher tariffs? And why if the returns were lower, why did you consider bidding at such low tariffs in the first place anyway? So I think first of all, I think it is a PPA termination. The project is still on. And the PPA termination has happened because there was a delay. And we do have the opportunity to enter into another PPA or use this capacity for merchant. So from that perspective, I think it's not a really huge negative for us.

19:02 Okay. Just secondly, on some of the long term projects you have, including the pumped storage project and some thermal pipelines. On the pumped storage project, can you obviously, there's a lot of news flow. Can you update us what exactly is the latest status? What possibilities are you considering? Maybe alternate sites or something? Is this any update you can provide? See, I think on the pump storage, the project is obviously at initial stages and some preliminary site work has started. We have also given a press release explaining the company's position and measures are being taken to address the shareholder stakeholder concerns.

19:48 So we continue to engage with the concerned stakeholders, including the local community and public at large to dispel any concerns they have. So far, I think the matter is still very dynamic, and we are discussing and trying to address those concerns. So I believe some alternates, do you have any when you were looking at evaluating this project, I'm sure you would have evaluated other sites also. Is there a possibility that you have some other sites also in consideration for this topic? Well, it's too premature right now to really get into those discussions. Like I said, the project is at very early preliminary stage, and we are sort of trying to allay some of those concerns that have been raised.

20:42 We have also given some details through the press release. So at this stage, I think thinking about alternatives would be slightly premature. Okay. Lastly, on the Thurman pipeline, you already have the Madhya Pradesh project. Is there are there other projects you are actively participating or evaluating in the pipeline? Could we maybe look at some possibility of additional project or even the balance sheet leverage and all that you have, just trying to see how are you thinking of building any future pipeline for Farbault? So Sachin, if we do evaluate bids which keep on coming.

21:30 And if they are at commercial levels, which are expected to us, we would want to participate. As far as leverage is concerned, I think these are our long gestation period contracts. And if you look at internally, I think we are comfortable with respect to leverage is concerned. Okay. Thank you so much. Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Yash Kabra from Nirvalbang Securities. Sir, am I audible? Yes. Sir. Sir, just some a couple of questions.

22:19 Firstly, sir, I just wanted to understand, like in this quarter, we like the EBITDA margins have reduced and, like, some power purchase cost has gone up and g and a expenses has gone up. But just... Can you just give some color? Is there any specific reason why it has happened? And will it continue going forward? Or how do you think EBITDA margins going forward? So Yash, if you look at the nature of our business, if you look at our license distribution or a franchise distribution business, my coal my power purchase cost is a pass through for me. Even if my generation of gas and coal, they are all pass through. So what happens is if my power purchase cost goes up, my revenue also goes up.

23:09 And typically, on a mathematical side, EBITDA margins will come down. So effectively, I mean, we should not look at purely from an EBITDA margin perspective, considering 60% of our business comes from distribution business. Okay. Okay, sir. And on the let's say, continuing on this point, just wanted to ask, let's say, this quarter, like as previously, ma'am, was mentioned in the opening remarks as well, but just wanted, the finance cost has gone up. And if you look at, let's say, rate has also gone up. So on these two points, can we just give why the finance cost has gone up? Why is there any additional volume and for what reasons? Yes.

23:55 So yes, basically, when we acquired Nava, we borrowed at Torrent Power level. So for that borrowing, the finance cost has gone up. Nava itself had around INR 3,000 crores of borrowing because of which on a console basis, finance cost has gone up. And there were some capitalization during the quarter because of which the interest cost has gone up. So I think these are two or three broad reasons why the finance cost has gone Got it. Got it. And so on the tax rate, it has gone up by just a percent, but like broadly, was there any one off in this quarter? No, it's basically switching to new tax regime. So it's on a console basis, it has slightly gone up because some of the subsidies becoming profitable, there will be some tax impact.

24:41 Thank you. The next question is from Mohit Kumar from ICICI Securities. Hi. Thanks for the opportunity once again. My question is finally on the financial closure of the pump destroyers project cost project and the coal based power plant. Are we financing it on SPV basis or on the balance sheet? Yes. So Mohit, both of our projects have achieved financial closure on the FTV basis through a long term loan tied up.

25:31 So when I say long term loan, these are all twenty, twenty five year loans, which you have tied up. Understood. My second question, what is the update on the status of 800 megawatts, which I think we are supposed to set up in lieu of the replacement of the Ahmedabad power plant, which is getting retired? So as of now, we have got the allocation. Still too premature to comment anything on that as of now. Understood. Understood. Thank you. Thank you. The next question is from Harsh Singh from Samiksha Capital.

26:21 Please go ahead. Right. So thank you for the opportunity. Am I audible? Yeah. Right. So firstly, on the cash flows, if I look at the receivables, the receivables balance have gone up almost 80% at the end of the year. So is there a specific reason because of this has happened like Narva acquisition? Any commentary on... Predominantly because of Narva acquisition and also typically in the license distribution businesses, because of high power demand season, those in this Q1 and Q2, it goes up and then it gets start liquidating. So it's basically two reasons. Okay. So you do expect it to normalize over the year then back to the So Naba would remain.

27:09 Other things would get normalized. Understood. Thank you. Other thing on distribution business, if I look at the units sold in the PPT, it changes not much, but the revenue is still one of... From the distribution business. So is it just increased from the past purchase pass through? And if that is the case, what is the stable is right. Yeah. So so what is it the stable growth rate we can expect from this when by combining the unit growth plus the part that is stable? No. So I think, Harsh, if you look at profitability growth, there are different levers for profitability growth in the license distribution business. So one, of course, is volume growth, which leads to your CapEx, higher CapEx going forward. And then there are other savings in terms of T and D and O and M expenses.

28:03 Right. Right. So so do we expect, like, this trend to continue in terms of the increase coming from power purchase pass through? So power purchase pass through, if power purchase cost goes down, my revenues will go down, but that will not impact the volumes. Right. So again, I'm just asking, do we expect, volumes to pick up going ahead? And that's the big question. I think we don't give any forward looking statements per se. But I think on a very steady state basis, 4%, 5% is what one should look at it. I mean, it is more comparable to the GDP growth. And then there is to be a factor of GDP, which typically improves the electricity demand.

29:00 Thank you. Next question is from Varuni from Aventispark. Please go ahead. Good evening. Apologies. I joined in late. Just please, if it's a repetitive thing, please apologize. Baran, your voice is can you just come near the speaker? I mean, we are not able to hear you properly. Is it better now? Slightly better. Okay. I'll be loud as much as possible. Yes. No, I was telling I joined a little bit late. So if it is repetitive, I apologize. Wanted to understand the underlying reason for our merchant gains to be lower even if the industry has seen high power demand and other gas utilities have benefited due to this?

29:51 So I think you're right, that power demand has been very robust during H1 of this year. But if you look at it, the gas prices also are very elevated. And hence, our capacity to sell on the merchant market was very limited. In fact, I look at it in this way that even at this elevated gas prices, we were able to make decent profits in merchant market is concerned. But I heard that you mentioned that we made a spread of around INR 4 to 5 per unit. Why could we have generated more and made that spread? So okay. So if you look at it, the power demand during the day, I mean, the slots where they provide good profit or the selling rates are very small.

30:41 So hence, the unit, which you will be able to sell in those slots would be lower. During the day hour because of solar power coming in, prices go down typically in the merchant markets. And hence, the units which you are able to sell with such high LNG prices would be smaller. Okay. Your voice was breaking, but if I understand right, you're telling the window to take advantage of high prices only in the evening time, which is what you're telling? Yes, yes. During the peak hours. Okay. And can you refresh regarding the availability of gas overall for merchant plant and for the PPA projects like Sutan, Munozutan? What is the availability of gas right now that is there in terms of the number of cargoes that is there? How much PLF we can expect from T cells within a Unocision point of view for the next one year?

31:39 So if you remember, we had disclosed that we have booked cargoes or 10 cargoes per annum starting from calendar year 'twenty seven. So from next year onwards, we will be getting those cargoes for our Torrent Power business and some of our Torrent Gas business. So as far as my PPA capacities are concerned, we should be covered from a liability under the PPA to these cargoes. On a for the merchant basis, we'll look at it how the merchant market behaves and how the LNG prices behave, and we would want to lock in the cargoes for the next year. And anyway, this year, this will be a low power demand scenario.

32:25 And hence, I think it would be difficult for you to sell on the merchant market with such high LNG prices. So these 10 cargoes, you will be able to generate diesel during high demand period next year? So okay. Out of 10 cargoes, there are certain cargoes which are allocated to Torrent Gas. And some of the cargoes are available for Torrent Power, which are typically earmarked for my license distribution businesses. So using it for DGen, we'll look at it if not I mean, if they are not willing to lift it up, then we'll look at it. But as of now, they are earmarked for our distribution businesses. Okay. Now the reason why I'm asking is the same side, even for this year is because we didn't have such a good book for DGen is also one of the reasons why we were not able to take advantage of the high power demand scenario given the cargoes would come at a fixed price, which would be lower than the market price. So I was wondering if we have enough cargoes at fixed price lower than the market price for the next year, we would be able to take advantage next year. That's why I was asking that.

33:36 So correct. So if you do a long term contract, these are all variable contracts. You cannot do a fixed price contract on a long term basis. The next question is from Sumit Kishore from Axis Capital. Please go ahead. Yes. Just a follow-up in terms of the renewable capacity addition plans for this year and next fiscal. Given that you have done close to what 300 megawatt plus in the first half megawatt peak in first half of the year, are you on track to sort of commission 1.2 gigawatts that you had indicated earlier for FY 'twenty seven and your capacity addition plans for the next fiscal?

34:30 Yes. As of now, we are I think we are on track to achieve one to 1.2 gigawatt of commissioning. Typically, Q2 is slightly a lower year I mean, lower number because of rains and all. But H1, we should pick up H2, sorry. Okay. And next year, this should be about 1.5 gigawatt? I think what we have communicated is 1.4 to 1.6 gigawatts. Okay. Comments, there was the news around a private sector player being granted a twenty five year parallel distribution license for areas around Gurkhao.

35:17 There has been pushback from the state, but is there any traction on parallel licensing as a outcome post this? No, nothing as of now, which we can comment on. Got it. Okay. Thank you. Thank you. The next question is from Vishal Miraya from Pantak Asset Management. Please go ahead. Yeah. Hi. The cargoes of gas that we have contracted for the next calendar year, could you give a ballpark estimate of the landed price, I mean, based on the contract that you have linked to crude and other steel prices?

36:06 So Vishal, those cargoes are linked to brand rated crude, which is variable. So difficult to give you a pricing point. It is slow to the crude, and we are not sharing the slope numbers. But I think we are very competitive when the slopes are concerned. Okay. Could you give the quantum to these 10 cargoes would amount to how much and what would be the share of TORNTPOWER? So TORNTPOWER should get around four to five cargoes out of this 10 per annum. Okay. And what will be the quantum of how many MMBtu or VCF?

36:57 So the cargo contains 3.2 TBtu of gas. Okay. And one question on renewables, on the C and I contracts that we have. So what is the installation schedule? I mean, what is the commissioning schedule of these C and I projects? And what is the kind of structure that you have entered into, if it's some ballpark estimates here to be very helpful? So C and I projects, I mean, there are multiple PPAs. So giving you a particular year of commissioning would be difficult. But if you look at it, we keep on executing or commissioning the projects on a quarter on quarter basis.

37:44 And that should be all my T and I projects, which are currently tied up, should get, I think, commissioned by 'twenty nine. But it will be a progressive commissioning over the next two years. The next question is from Shiram Kapoor from Jefferies. Just a couple of questions. One, just repeating on the thermal generation EBITDA that you reported of INR $7.10 crores.

38:30 Adjusting for those two one offs that you mentioned, 115 crores from Nabha Power and 52 crores from the IOCL transaction, it seems that your generation EBITDA has come quite a bit, both quarter on quarter and year on year. So am I missing something in these two basins, second quarter last year as well as first quarter this year? Were there any one offs that we should be adjusting for as well? So if you adjust both of these, the 710 crore number should read like INR $5.43 crore, so INR $5.40 crore, which is compared to Q2 of last year is around INR $4.60 crore. So there is a growth of INR 83 crores on a year on year basis.

39:20 As we told that this has an impact of around INR 55 crores of gross profit. But because of Nava acquisition, INR 83 crores is the delta. Right. And what about quarter on quarter, there's it's obviously gone up by about INR 170 crores quarter on quarter. It's because it's all consuming. Entirely from Nava. Sure. And just now secondly, there are some news reports suggesting there could be some there are some concerns around your three gigawatt PSP project in Maharashtra due to the forest cutting. Could you comment on that? Are we seeing any delays in that PSP project or all is on track, Shiron, we have answered this in the same call earlier.

40:16 So were you there on the call when we sort of... So I might have missed that. I might have not been on that on the call at that time. I joined little late. I think the very high level answer is it is the project is at a very preliminary state. And we are we have already explained the company's position through a press release. And we are aware of the concerns that have been raised, and we are engaged with the concerned stakeholders to address their concerns. So at this stage, I think the matter is very fluid and dynamic, and I think we will continue to watch for the developments. Got it, sir. And just how same quarter 1H last year had that NBBN contract on your the merchant side. Are we expecting to sign any more medium term contracts going ahead or nothing such as in the horizon?

41:10 Shiro, I mean, typically, Q3 and Q4 are lower power demand sort of quarters for the country. So we don't expect any major contracts coming in for Q3 and Q4. Typically, Q1 and Q2 are high growth or high power demand quarters. So as we move forward, there could be some contracts which will come in. But that again will depend on what are the LNG prices. So it's a very dynamic situation. Right, sir. And just lastly on your wind PLF have come considerably higher this time despite weaker monsoons. So any particular thing that has driven your higher wind PLF this year or this quarter?

41:56 So, Shiram, I think wind resource was pretty good during this quarter. Typically, it is not linked to monsoons because beyond a certain velocity of wind, you I mean, the turbine stops. So if it is in a band, which turbines operate, I think you will get a better PLF. Understood, sir. So just this time you had better sort of the more appropriate wind speeds for your PLF, which is relative to the previous quarter. Is that Yes. Roughly Got it, sir. Great. Thank you so much. Thank you. Thank you. We have a follow-up question from from Jefferies. Please go ahead.

42:54 Hi, sir. Thanks for the follow-up. Just one last question on your Nabha Power, your EBITDA per unit based on the PLF that you all have reported. The EBITDA per unit seems to be a little lower around 0.5 to 0.6 per unit, whereas historically, plant has been seeing closer to INR 0.8 per unit. So any particular reason why maybe this quarter the EBITDA per unit has been a little lower? So there have been some timing differences because of which the if you look at the EBITDA, the EBITDA per unit also is slightly lower. But I think it should get going forward. So what would in your opinion, would be a sort of a steady state number we could look at for this plant? I think what we want to look at it is INR 1,000 crores of EBITDA run rate every year on a year on year basis.

43:46 And roughly around these PLFs about 85% to 87%, that's fair? Or was it could it be lower than PLF would not matter much. It is more about PAF where you write the fixed cost. So I think PAF is a better barometer to consider EBITDA. Got it, sir. And that should remain continue on similar levels going forward? It should. Got it. Got it, Thank you. Thank you. The next question is from Ramesh Sankar Narayanan, who is a Division Investor. Please go ahead. Thank you very much and congratulations on your results. So if you look at the gas based power generation, how do you see the viability of peak power generation at the current gas price, LNG prices, especially spot prices?

44:43 And how do you read the PLF for gas power generation going forward in the second half? And the next thought is in terms of your overall blend of power generation across fuel categories, if you look at the increase in share of solar, wind and hybrid, can we expect the ROCE and ROE to go up on a consolidated basis? So I think, Ramit, on the first question, which you asked about, as far as I think PLF are concerned, it is a factor of two things. One is what are the LNG prices which are there in the market. And second one is on the prices of power in the market as far as our merchant portfolio is concerned. As far as our PPA is concerned, PLF does not move my profitability because these are all 62 PPAs.

45:36 And hence, it does not move my profitability. Think it's very difficult for us to give you an or a particular answer to the PLF levels on a forward basis. As far as your second question is concerned, which was if you can just repeat that, it would be helpful. ROE Yes. So if you look at your... ROE and ROE and you see the increase in the share of solar, wind and hybrid. So would that materially improve your ROCE and ROE on a blended basis or on a consolidated basis? No. So I think the share of profitability from those businesses would not be very high, which can impact my ROE, ROCE. But typically, in a renewable project, initially, the ROCE, ROEs are slightly lower and then it starts catching up.

46:29 So renewal projects coming in, there should be some impact on the ROE, ROCE on a consolidated basis. And then it starts picking up once the projects are commissioned after a year or two. Okay. So one last one on the subsidiary, is it possible to share what is the PLF? And what is the ROE for that subsidiary? Which subsidiary? The NPL. NAVA Power. Yes. So NAVA Power, as we told it, recorded EBITDA of INR 142 crores. Okay. So in terms of the shareholders' equity and ROE, it possible to share the number? I think it's too early to comment. It's just one quarter.

47:14 Okay. Right. So thanks a lot and wish you all. Thank you. Thank you. There are no further questions, I would now like to hand the conference over to the management team for closing comments. Yes. So thank you. I think as a closing comment, it has been a steady quarter with very good revenue growth and also a very stable margin. So I think I just take this opportunity to wish you all a very happy Diwali once again, and thank you so much.

48:18 Thank you very much. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.