Sarda Energy & Minerals Ltd — Call Transcript 2024

Nov 25, 2024

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A n ISO 9001, ISO 14001 & ISO
45001
Certified Company
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SARDA ENERGY & MINERALS LTD.
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25[th] November 2024

BSE Ltd The Department of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street – Mumbai 400 001

National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex Bandra (E), Mumbai – 400051 Fax. No: 022-26598237/38, 022-26598347/48

Security Code No. : 504614

Symbol: SARDAEN Series: EQ

Dear Sir,

Sub: Transcript of the earnings call conducted on 18[th] November 2024

Please find enclosed herewith the transcript of the Q2 & H1 FY 25 Earnings Conference Call conducted on 18[th] November 2024. This is for your information and records.

This information is being hosted on the Company’s website - www.seml.co.in.

Thanking you,

Yours faithfully, For Sarda Energy & Minerals Ltd.

Authorised Signatory MANISH SETHI Digitally signed by MANISH SETHI Date: 2024.11.25 17:30:33 +05'30'

Encl: As above

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“Sarda Energy & Minerals Limited Q2 FY '25 Earnings Conference Call”

November 18, 2024

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MANAGEMENT:

MR. MANISH SARDA – DEPUTY MANAGING DIRECTOR – SARDA METALS & ALLOYS LIMITED MR. PADAM JAIN – DIRECTOR AND CHIEF FINANCIAL OFFICER – SARDA ENERGY & MINERALS LIMITED MR. NILAY JOSHI – HEAD, CORPORATE FINANCE – SARDA ENERGY & MINERALS LIMITED

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Sarda Energy & Minerals Limited November 18, 2024

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Moderator:

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '25 Earnings Conference Call of Sarda Energy & Minerals Limited. 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Vinita Pandya. Thank you, and over to you, ma'am.

Vinita Pandya:

Thank you, Steve. Good afternoon, everyone, and thank you for joining us today. We have with us today the senior management team of Sarda Energy & Minerals Limited; Mr. Manish Sarda, Deputy Managing Director, Sarda Metals & Alloys; Mr. P.K. Jain, Director and CFO; Mr. Nilay Joshi, Head, Corporate Finance, who will represent Sarda Energy & Minerals on the call. The management will be sharing the key operating and financial highlights for the quarter and half year ended September 30, 2024, followed by a question-and - answer session.

Please note this call may contain some forward-looking statements, which are completely based upon the company's beliefs, opinions and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made.

I now hand over the conference over to Mr. Manish Sarda. Thank you, and over to you, sir.

P K Jain:

Good afternoon, ladies and gentlemen. Welcome to Sarda Energy's investor con-call on the results of the quarter 2. I hope you have had a chance to go through the results, press release and presentation, which have been uploaded on our website and websites of stock exchanges.

Economies across the globe continue to face macro headwinds. China announced another positive stimulus to boost their economic growth. However, that also appears to be short lived. USA reduced policy rates twice in last 2 months after 3 years. RBI has also changed its stance to neutral. As such, we may expect reversal of interest rate increase sooner than later depending upon the inflation data. The intensified conflict in Middle East remains a concern for energy prices and global trade. Formation of a new government in USA will also have its impact on the geopolitics and geo-economics, the effect of which is broadly expected to be positive for India.

On August 21, 2024, we successfully completed acquisition of SKS Power Generation (Chhattisgarh) Limited, shortly called SKS under IBC route. SKS is having 2 operating thermal power generating units of 300 megawatt each, in Raigarh district of Chhattisgarh. SKS has been amalgamated with our company with effect from September 1, 2024. The results for the quarter include result of SKS power plant also with effect from August 22, 2024.

One of the 2 power generating units was under shutdown from September 1, 2024, for overhauling after operation for 5 years, which has resumed generation from October 12, 2024. As such, results of acquisition will truly start reflecting from next quarterly results only.

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Unsuccessful applicants had challenged the NCLT's approval of our plan before NCLAT, appellate forum. NCLAT has dismissed their appeal. Now they have challenged the approval before Supreme Court.

During the quarter, we reduced production of steel billets and downstream products to sell power on commercial consideration. One of the 5 ferro alloy furnaces at Raipur was under shutdown from September 1 for modification, which restarted on November 1, 2024. We recorded highest ever quarterly generation of captive thermal power.

Hydropower generation recorded 8% growth year-on-year on the back of better but delayed monsoon. Generation in the third quarter so far was also better year-on-year. Detailed operational data is available on our website and in press release uploaded on the websites of stock exchanges.

We have received consent to operate for increase in the coal mining capacity of Gare Palma IV/7 from 1.44 million tons to 1.68 million tons. We have also received environmental clearance for increasing the capacity of coal washery from 0.96 million tons to 5.2 million tons in 2 phases, initially to 1.8 million tons and then to 5.2 million tons. We have also received Stage 2 forest clearance for Shahpur West coal mine. We are taking steps for execution of mining lease. Mine opening work will start after we execute the mining lease. We expect to get mine opening permission during current quarter. We expect to start production of the coal from this mine within 2 years from mine opening permission.

Work for 50-megawatt captive solar power project is progressing as per schedule. The plant is scheduled to be operational by the end of current financial year. We are in the process of preparation and approval of detailed project report and mining plan for Bartunga Hill coalmine in joint venture. 25-megawatt Rehar hydropower project has been installed and is ready for trial run. The Chhattisgarh government has announced incentives in its recent industrial policy to promote the hydropower sector in the state. The Rehar hydropower project will also be eligible for the incentives.

The waste utilization project in Visakhapatnam is progressing as per schedule and expected to be operational before end of the current financial year. The order for replacement of 30megawatt TG set has been placed with Bharat Heavy Electricals Limited and work on the project is progressing as per schedule. The plant will be operational in mid of financial year 2026-'27.

The company achieved consolidated quarterly revenue of INR1,159 crores in quarter 2 FY '25 as compared to INR926 crores last quarter and INR1,001 crores in quarter 2 of previous year. Provision for income tax includes the effect of removal of indexation benefit on land in the current year tax law. Consolidated profit after tax was INR195 crores as compared to INR199 crores in last quarter and INR141 crores in quarter 2 of the previous year. The result for the quarter includes result of IPP of 600 megawatts acquired during the quarter. True effect of the acquisition will start reflecting from quarter 3. Acquisition-related costs have been booked as expense in our books as per Ind AS requirement.

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On account of increased import and reduced export of the steel, the prices of steel products remained subdued during the quarter. Post the announcement of the policy stimulus by China, some improvement was recorded in the steel prices, which appears to be short lived. During the quarter, we spent about INR1,950 crores on acquisition of SKS Power Plant, in addition to the normal capex on the ongoing projects.

Post acquisition of SKS, our consolidated net debt, including for working capital, stood at around INR1,300 crores. Long-term loans repayable within next one year is less than INR200 crores. The company holds a strong liquidity with cash and liquid investments of more than INR1,500 crores as of September 30, 2024, which is in addition to the loans given as part of treasury investments. The debt to EBITDA is below 1, which will go down further as the effect of 600megawatt IPP start reflecting in the EBITDA.

During 9 months of calendar year 2024, global steel production declined by 1.9% to 1,394 million tons. China recorded decline of 3.6%. Bucking the global trend during the same period, India recorded growth of 5.9%.

Due to slowdown in the domestic economy, Chinese steel exports remained at elevated levels. Aggressive exports from China due to subdued domestic demand weighed on the global steel prices, China exported 84 million tons in 9 months, recording a growth of 21%. Many countries have invoked safeguard measures against Chinese imports.

In absence of safeguard measures, steel imports in India recorded sharp jump of 44.5% quarteron-quarter and 43.2% year-on-year, whereas the exports fell 14.8% quarter-on-quarter and 29% year-on-year. India was net importer of steel of about 1.9 million tons in the quarter. The EU imposed additional safeguards to moderate high steel imports.

Ferro alloys prices corrected back to previous levels after sharp jump in June on the fear of shortage of raw material due to disruption in Australia. Merchant power prices remained subdued due to above average rainfall during the quarter.

Domestic crude steel production in quarter 2 of current financial year fell marginally by less than 1% but grew 2.7% year-on-year to 36.23 million tons. Domestic finished steel consumption grew by about 4.2% quarter-on-quarter and 11.6% year-on-year to 37.09 million tons.

Ferro alloy exports have been stable. During the quarter, we exported about 28,200 metric tons of ferro alloys worth INR251 crores in quarter 2 of current financial year as compared to 32,500 metric tons worth INR273 crores last quarter, and about 25,500 metric tons worth INR189 crores in the corresponding period of the previous year.

India is the fastest-growing major economy on the strength of its domestic demand and demography. The reversal of interest rate cycle will further strengthen competitiveness of the industry. Government is also taking safeguard measures to check steel imports. China is also pushing its economy through policy initiatives. The fall in fiscal deficit provides legroom for increased government capex. All this should augur well for Indian steel industry.

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Good credit offtake and strong capital market, particularly primary issuances indicate rise in the private capex that should boost capex heavy projects. Real estate sector has also recorded healthy bookings creating demand for steel. The effect of 600-megawatt thermal power plant acquired by us will start reflecting from the current quarter. This plant will give a major boost to the top line and bottom line of the company. That concludes our performance and outlook.

We now open the forum for question-and-answer. Thank you to all the participants.

Moderator: The first question is from the line of A.M. Lodha from Sanmati Consultants. A.M. Lodha: Sir, congratulations for the good set of numbers as well as congratulations to the entire team of the management for successful takeover of SKS Power plant. I have got 2 questions, sir. One in fact is relating to SKS Power and second is relating to coal. Now SKS Power, as you have mentioned in your presentation that NCLT appeal has gone in your favour but the aggrieved parties have gone to the Supreme Court. So what is the opinion of our lawyers for this acquisition and this Supreme Court matter? P K Jain: So, it has been confirmed twice by NCLAT. That gives a reasonable strength to our case. A.M. Lodha: Does it make any material difference, particularly when you have taken the possession of the plant and made the payment and payment has been made to the banker. Will it make any material difference in Supreme Court? P K Jain: It is up to the Supreme Court, matter being sub judice. I think the Supreme Court will take into consideration each and every aspect. Ultimately, it is being -- matter being sub judice, I don't think we can give any specific. It is up to the Supreme Court, but definitely all these factors will also be considered. A.M. Lodha: Okay, sir. So, in this acquisition, how much is -- out of 600, how much we are selling under PPA and how much we are selling in the market in the grid? P K Jain: PPA, -- we have long-term PPA, medium-term PPA, short-term PPA and IEX all. For shortterm PPA, quantity goes up and down. So maybe out of 600, maybe 400 around because it's a fluctuating figure. It is related... A.M. Lodha: What is the present rate prevailing in the exchange? P K Jain: In Exchange, it also fluctuates again, but generally we are getting INR5 plus only on average because it varies hour to hour and day to day. A.M. Lodha: Whether the management has any intent to double the capacity of this plant? P K Jain: Let the matters first be resolved. Definitely, if all infrastructure is available, appropriate steps will be taken at appropriate time.

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A.M. Lodha:	My second question is regarding the coal mine, sir. We have got the capacity expanded to 1.68
	million tonne and we applied for 5.2 MTPA. When we can expect to get the clearance for this
	expansion of the coal mines, sir?
P K Jain:	In the first stage, we are increasing it further from 1.68 million to 1.8 million tons. We expect to
	get maybe by end of the current financial year or maybe in the beginning of the next financial
	year. Then we will go for 5.2 million tons. So that will take some time.
A.M. Lodha:	Okay, sir. Can I ask one more question, last?
P K Jain:	Yes, sure.
A.M. Lodha:	The question is relating to hydropower, sir. Our Sikkim hydropower 113 megawatt, Rongnichu
	power plant at Sikkim. That we have, I think, commenced the commercial production last year.
	It's the second year running, I think?
P K Jain:	This is, I think, third year.
A.M. Lodha:	Third year, so...
P K Jain:	Total 3 years, this is fourth year.
A.M. Lodha:	Fourth year. Just I wanted to know the extent of the loans taken for this power plant and
	repayment schedule?
P K Jain:	Yes. I think best we can provide you offline. Immediately, it will be very difficult to provide
	specific figures with regards to repayment schedule
A.M. Lodha:	I’ll send a mail to you, sir.
Moderator:	The next question is from the line of Aman Madrecha from Augmenta Research.
Aman Madrecha:	So, first of all, can you highlight on the total coal mix given that we are at 1.68 million tons of
	coal capacity currently. So how much according to us will be used towards the power plant?
	And how much will be used for our internal operations? Could you highlight on that? And what
	portion -- and second question is that what portion of the SKS coal requirement is met through
	PPA signed with Coal India and what portion is met in-house again?
P K Jain:	Out of 1.68 million tons, 100% will be captively consumed whether it is in the power plant of
	SKS or internally for sponge iron plant, captive power plant and all those things. Broadly, maybe
	about 0.6 million tons might be used in other facilities and 1 million tons plus will be used in
	power plant.
Aman Madrecha:	Sir, so for 1 million tons of this coal, what percentage of power requirement will be met through,
	let's say, for example, for this 600 megawatt to run at fully, let's say, at 85% PLF, how much
	coal do we require, can you provide that number?

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P K Jain:

We require more than 3 million tons, maybe 3.2, depending upon the grade of the coal. It will be 3 million tons plus requirement.

Aman Madrecha: So given that, out of that 3 million tons, 1 million tons is met through this coal mine and rest we buy from outside in PPA?

P K Jain: Yes, for the time being, yes.

Aman Madrecha: Okay sir. And can you also highlight on the upcoming two coal mines, let's say the Shahpur West and the other coal mines that is coming up? Where are we on the Shahpur West coal mine? P K Jain: As given in our initial address, we have received forest clearance stage two also. Now we are in the process of executing the mining lease. Post that, we'll get the mine opening permission. And once we get the mine opening permission which we expect to get before end of the quarter, then it will take about 2 years' time to start the production or getting the production from that mine.

Aman Madrecha: Okay. And sir if I believe according to previous remarks, previous interaction this Shahpur West coal mines quality is at par of the imported coal quality, right?

P K Jain:

Yes.

Aman Madrecha: Okay. Thank you so much.

Moderator: Thank you. The next question is from the line of Digant Haria from GreenEdge Wealth. Please go ahead.

Digant Haria: Thank you for taking my question. Sir my question is again on this SKS Power that -- now it's at least 3 months that we have the power plant in our hand. So what is the peak PLF that we can reach in the power plant now that you will have some more access to the power plant and how they work? So that is question number one. Question number two is, sir, you said the blended realization right now is around INR5 a unit.

So what would be the EBITDA or PBT per unit that we can make? I'm not looking at an exact number, but just a range depending on own coal mine or coal which we are using currently from Coal India. What is the potential here? So these are the two questions, sir.

P K Jain: In normal course, we should expect 85% of the PLF from the plant. And we have been operating at full capacity. We have been getting - the plant is generating full capacity generation. So there is no case of under capacity operation. The plant is capable to operate at full capacity of 600 megawatts. That is the first question, I think I have. What exactly you wanted this is what and PLF as I stated…

Digant Haria: Yes, so PLF can be 85%, you are saying or even more?

P K Jain: Yes, 80% to 85%, because if we are selling part of the power in IEX, sometimes it happens that you have the capacity, but prices are not remunerative enough so sometimes you may have to cut down the production. So in that case, we may consider lower PLF on the safe side. If we

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consider it may be 80% because only a part is on the long-term contract. Sometimes, we have to cut down the production.

Digant Haria:

P K Jain:

Digant Haria:

P K Jain:

Digant Haria:

Manish Sarda:

Digant Haria:

Manish Sarda:

Digant Haria:

Moderator:

Pradeep Rawat:

P K Jain:

Got it. And my next question is what is the EBITDA per unit or profit before tax, PBT per unit because you said revenue is around INR5 a unit right now. Over the long term, where do you to see this profit before tax number? It will be INR1 a unit, INR2 unit? What is the economics if you can just explain us, that will be helpful?

EBITDA should remain in the range of, say, INR1.5 to INR2.5, somewhere in between, depending upon the prices because price volatility is there.

And sir INR1.5 to INR2.5 EBITDA, this will claim once we have our own coal mine, this entire 2 million right now, which we are buying from Coal India, if we get it from our own mine Gare Palma 2 years, 3 years later, then does this number change or it may remain in the same range, 1.5 to 2.5?

It will improve marginally. Definitely, it will improve marginally.

Okay. Sir, last question was on the steel part. You just mentioned that the imports from China have been very high and everybody is representing to the government. So these imports are very high on which parts like is it mostly flat, long or in the products which we are there? Any colour that you can give on this?

Can you come again, please?

Yes. So my question was that the imports from China has increased a lot on the steel side. So I just wanted to check, are there specific products where Chinese dumping is very high in India or is it just mostly affecting our products or any such color you can give on the imports from China? And how different are the spreads?

In the last few months, we have seen a lot of imports happening from China. And it's basically on the electrical steels and flat steels that are coming into the country. And the government has taken a note of that and is working on that to curb the imports also. So soon, we'll -- we are very hopeful that soon we'll see that there will be some import curbs in place. And overall -- basically, overall what happens when you see such a large sort of imports coming into India from China, the overall sentiment gets a little shaky here in India.

Right sir. Okay. Thank you so much.

The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead.

Good evening and thank you for the opportunity. Sir I have some basic questions. Can you just highlight what is the cost of mining of coal and iron ore from our mines?

Coal cost depends on market price of coal because we are paying a substantial part towards revenue share. See, we are paying 67% revenue share in our Gare Palma 4/7 and we are also paying royalty. The whole cost depends upon the market price of the coal which fluctuates in a

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wider range. And in case of iron ore, it is somewhere in the range of INR2,500 to INR2,700 depending upon the output. There are multiple variables, lumps and fines.

Again, because a major component of the output is the government taxes, which varies depending upon the grade and the size of the material taken out. So defining a specific pricing, what is -- the cost will be very difficult. In case of coal also, we have four different grades of the coal from the same mine. So the cost varies in a much wider range.

Pradeep Rawat: Yes, sir, I was just asking more about the cost of operations in mining, excluding that revenue sharing model that we do?

P K Jain:

That is not material in overall cost structure.

Pradeep Rawat: Okay. And we have Kalyani mines which could -- so when can we expect this Kalyani mines to operationalize? And are we planning to use some kind of advanced mining techniques like underground continuous miners or are we going to do it with existing blasting technology?

P K Jain:

So far as the use of the technology is concerned, in case of underground mines generally, continuous miners only will be used. Take the case of Shahpur West Coal Mine, We will use continuous miners only for extraction of the coal from the mine. So far as the Gare Palma 4/7 present operations are concerned, that is an open cast mine, continuous miner is not required. So appropriate -- whatever is appropriate technology depending upon the mine is applied.

Pradeep Rawat:

And can you also comment on when could we expect Kalyani mines to be operationalized?

P K Jain:

In the last concall, we had stated that there was a dispute on the boundary. There was overlapping boundary of the two different mines allotted to different parties. So that matter was taken up and that boundary dispute has been sorted out, but now we are in the process of evaluating. Post realignment of the boundary, we are carrying out the DPR and viability survey and final outcome will come only once that is approved by the South Eastern Coalfields Limited. So as of now the position is standstill.

Pradeep Rawat:

Yes, understood. Just last one basic question. We have purchased Surjagarh iron ore block for 126% revenue share model. So I was just wondering how can we be profitable when we are giving away more than 100% of revenue share to the government? So that was one basic question from my side?

PK Jain: Yes. If you see all the iron ore mines have gone only in this range and I think within this Surjagarh iron ore block also. Our bid well, I think is lowest -- maybe among the lowest of the premium, which was bid by us. Others have given their bids much higher than our bid in the same geology and same area.

There were multiple blocks in Surjagarh, ours is block number 1. And we have got a better quality of the iron ore. There are multiple variables again in the pricing of the iron ore, iron ore fines, iron ore lumps. There are multiple variables there. What prices -- and their revenue share is payable on the notified price of the estate.

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It is not on your selling price because if we -- we'll be bringing -- in case of iron ore, the royalty and revenue share is payable on the notified price. So there are multiple variables in cost structure.

Moderator:

Next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.

Balasubramanian: Congratulations for the set of numbers. So just wanted to understand the pricing point of view. Last quarter some price corrections around 6% to 8% for the wire rod and HB wire. And manganese ore also has been corrected 10% to 27% based on high grade to low grade in that range. In this quarter, how is the price of -- what's the scenario right now?

Manish Sarda: This quarter also, we see that the prices will be a little subdued because December holidays are approaching. And typically, we see that December is a little lull month. Overall, I think the government spending will also start happening in the next 3 to 4 months. Because if you look at the last 6 months government spending has been not as much as we had expected it to be on infrastructure. So going forward, I think the demand will pick up. But in the next 2 to 3 months, I think it will be a little subdued as well.

Moderator:

The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead.

Pradeep Rawat: For the follow-up, so I just wanted to understand more on the Ferro alloy market. So how is it faring right now? And what can we expect going forward?

Manish Sarda:

So the Ferro alloys market, as you know, that it had gone up in the middle because of the ore prices which happened in Australia where there was severe flooding, etcetera. That happened in the South 32 mines. Right now, the alloy market is quite slow and the demand globally is not very high right now because you've seen major regions and disturbances like the Ukraine, Russia war happening, the Gaza attack, the Middle Eastern regions.

Also, the credit crunch is felt across regions. So we're not hoping that the next 2, 3 months, there'll be an uptick on the Ferro alloy side, or the Ferro alloy pricing. But maybe after January end and February onwards, typically, the demand picks up.

Moderator: The next question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead. Rajesh Bhandari: Sir, I have a question on SKS power and a question on Ferro alloy. On SKS power, it is expected that the turnover will be around INR2000 crores annually?

P K Jain:

Yes.

Rajesh Bhandari: And profit in the range of INR500 crores?

P K Jain: Yes, it will come above that.

Rajesh Bhandari: Very good, sir. And second, when is it expected that the high court case will be released in the next 3 to 6 months?

P K Jain: Can someone say when the court case will be released?

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Rajesh Bhandari:

That is a good question, sir. No, there was going to be a hearing on the 12th, but no one knows if it happened or not.

P K Jain:

P K Jain: No, there was no hearing on 12th. Rajesh Bhandari: Okay, there was no hearing yet. And when will the demand for Ferro alloy be stable? I mean, by December and January, it is expected?

Manish Sarda:

It will be after January, sir. December is a holiday. You know that December season is always a little low season. And January, people start coming back to offices by the 10th of January. So after January, only the pickup will start in terms of demand. But globally, the demand looks to be a little slow because Japan has got an installed capacity of 105 million tons, and they are not going to produce more than 90 million tons. So, we are seeing shortfall in terms of steel production in Japan as well. We are seeing a shortfall in terms of production in European Union as well, in terms of steel production. And this year looks to be a little low in terms of demand because of the war situation going on everywhere.

And we are also waiting and watching very quietly as to what will happen when Trump's policy comes into place. What are the impacts that are going to be put in place for China? We have to see what are the policies that he is bringing out for trade. And only then we can expect some demand pickup.

Rajesh Bhandari: If there is a restriction in China, will the demand pick up from India? Manish Sarda: There are already restrictions in China. But let us see what is the policy that comes into play. Rajesh Bhandari: But from January, the price stability and improvement is expected? Manish Sarda: The price stability is still there. It is hovering around $860 to $880. So price stability is already there in terms of dollar terms. Rajesh Bhandari: I couldn't get it, $860 to $880, what is that? Manish Sarda: $860 to $880. Rajesh Bhandari: Okay, okay, which is profitable for us? Manish Sarda: Not too much, but it's okay. It's not that bad. Rajesh Bhandari: Okay, sir. All the best for SKS Power. Moderator: The next question is from the line of A.M. Lodha from Sanmati Consultants. A.M. Lodha: There is one follow-up question which I skipped. Regarding SKS Power, sir. Can you tell me how many units are generated in 600 megawatts, sir? 80, 85 percent load factor, right? Number of units.

P K Jain: More than 400 crores units.

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A.M. Lodha:

No. of, unit. 400 crores, right?

P K Jain: Yes, I am saying 400 crore units. I am telling in units.

A.M. Lodha: Okay, sir. The second thing is that your 25 megawatt hydro is ready. So I was looking at a chart in your presentation where I found that the total capacity after this 25 hydropower, you will be having 1000 megawatt power in total? P K Jain: Not hydro. A.M. Lodha: Not hydro. All. One place you have mentioned 751, another place 166 hydro, another 50 solar and this hydro the 25 which is going to commence the production. So I'm making the total, the total comes to 1,200 megawatts?

P K Jain: I don't think 1,200. It should be somewhere in the range 1,000.

A.M. Lodha: No, not 1,200, 1,002 only -- yes, 1,000? P K Jain: It will be around 1,000 MW okay. A.M. Lodha: Okay, sir. This hydropower, since this year there was heavy rain, so I presume that hydropower will also generate some units in the month of October, November? PK Jain: Yes, October, November is better. In our address also we have mentioned that October, November generation is better as compared to the previous year. Moderator: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments. P K Jain: Thank you. We thank all the participants for attending this con call. To summarize what we stated, the long awaited acquisition of SKS 600-megawatt power plant is completed, and this will be a major growth driver in our journey. Number of projects are under execution for consistent growth. Out of these, 25-megawatt hydropower project and 50-megawatt solar power project will be commissioned in the current financial year. Our diversification has resulted in better performance during volatile times. So we are poised for exciting times. Thank you. Please feel free to reach out to us or to our IR team with any further queries. Thank you all. Moderator: Thank you. On behalf of Sarda Energy & Minerals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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