Adani Energy Solutions Ltd (NSE: ADANIENSOL) Q3 2025 Earnings Call dated Jan. 23, 2025
Corporate Participants:
Kandarp Patel — Chief Executive Officer
Kunjal Mehta — Chief Financial Officer
Anupam Misra — Joint President and Head, Adani Group Corporate Finance
Analysts:
Mohit Kumar — Analyst
Bharanidhar Vijayakumar — Analyst
Dhananjai Bagrodia — Analyst
Pradyumna Choudhary — Analyst
Love Sharma — Analyst
Unidentified Participant
Sagar Parekh — Analyst
Giriraj Daga — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Adani Energy Solutions Limited Q3 FY25 Investor Update Call. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Kandarp Patel, Chief Executive Officer of Adani Energy Solutions Limited. Thank you, and over to you, sir.
Kandarp Patel — Chief Executive Officer
Hi, good morning all investor friends and analysts, and also wish you a very happy new year. So, we have released this Q3 result material through Stock Exchange and also updated our website, so I am sure you — all of you must have had a chance to look at it.
You must have noticed that AESL has continued the growth momentum, even in Q3, in all parameters, be it on financial, operating or deployment or implementation parameters. So, we have reported strong numbers in terms of revenue, EBITDA, PAT and also CapEx deployment at our various projects. During this quarter, AESL has won one of the largest projects in its operating history, that is HVDC in Bhadla-Fatehpur transmission project of about INR25,000 crore CapEx. Besides that, we have also secured Khavda Phase IV Part-D, which is Pune-Boisar project. Now, with all these projects that we have secured in current year, our CapEx pipeline for transmission alone has reached to almost INR55,000 crore from INR17,000 crore level. So, that’s a significant thing that AESL has been able to achieve.
Now, while we continue to secure projects of large mounts, we have also performed very well in terms of deployment of CapEx on the ground. So, in quarter three, the CapEx of the transmission was about INR3,000 crore, which is almost 3 times of CapEx that we deployed last year in the same period. And for the nine-month period in the current year, the CapEx deployed so far is INR7,500 crores, which was almost double than what we did in the last year for — during the same period. And our focus now obviously will be on CapEx deployment, efficient CapEx deployment. So, all the projects that we are undertaking right now, we aim to complete that in a time and also within the cost.
In the current year itself, we will commission another three projects, which is Sangod, Khavda Phase IV Part-A and KPS augmentation. At AESL level and at AEML, we will commission another transmission project of — for BKC 220 kv project. These four — three projects — in fact, four projects will combine to about CapEx of INR3,100 crores that will get capitalized and that will start contributing revenue of about INR375 crores on an annual basis.
Similarly, on the smart meter, our deployment has gained a significant momentum. We have now reached to deployment of about 18 lakh meters so far. By the year end, we aim to reach to 40 lakh meters, and for the next year, we have targeted 70 lakh meters. So, all the things are in place, the teams are in place. Most of the issues on ground are sorted and we are confident that we will able to achieve this. In fact, we aim to surpass this, but it is the minimum that we will able to do on the ground.
On the operational front as well, we have done an excellent job. The availability that we have achieved is 99.7%, which has contributed to about INR33 crore of incentive income during the quarter, and the incentive income for the period nine months is about INR100 crore. We have added about 225 circuit kilometers during the quarter, now we have reached to 25,778 circuit kilometers. In the distribution segment as well, we continue to perform very well. Our sales have increased by about 3%, but significant achievement is in terms of T&D losses, now we have reached to level 4.66% and we aim to continue to maintain that trajectory. Even in the distribution network, we have achieved reliability of over 99.9%.
On the financial front as well, you must have seen those details. The revenue has increased by 15%. The total income now stands at about INR6,000 crore, with a growth of 24%. Operational EBITDA of INR1,579 crore, which is 9% higher as compared to the last period. Similarly, EBITDA increased by 6%, now it has reached to INR1,831 crore. The PAT has also seen a significant growth, it has reached to INR625 crores in quarter three, which is 80% higher on year-on-year basis.
So, now, you must have seen that the most important thing that we have achieved so far is that we have locked in our growth — 3 times growth already. And now, the focus of the organization will be on implementation. So, we will continue — but despite that, we will continue to participate in the bidding opportunities. There is about INR60,000 crore bidding that we expect to happen in the next one-year period. And while we participate in the bidding, we will be mindful that we will secure projects only to the extent that our ratios are not — and our ratings are not diluted, and our returns are not compromised. So, we will be very selective in taking the projects. And with these even thresholds, we expect that we will be able to continue to maintain our market share of around 20%.
So, with these details, I think we will dwell more during the question-and-answer session. Over to you for further proceedings.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Good morning, sir, and thanks for taking my questions. Sir, first question is on the financial numbers. Can you please help us with the large negative movement in deferred regulatory in this quarter in P&L and the nature of it?
Kunjal Mehta
Sorry, Mohit, large negative?
Mohit Kumar
The deferred regulatory line item in the P&L, where there is a negative of INR468 crores, if I am not wrong.
Kunjal Mehta
Correct, correct. So, Mohit, that is only on account of the regulatory surplus that the distribution business has reported. What has happened is that the MERC has now allowed FAC recovery to be done along with the tariff recovery, and because of which there is a regulatory surplus. Till now, we would have a regulatory gap in our account, but because of this FAC recovery, which the regulator has allowed, we are now having a surplus in our balance sheet or in our income statement, which is just a timing difference, which has back to be returned over the next quarter or over the next tariff period. So, it is just a timing part on the regulatory surplus part.
Kandarp Patel
So, Mohit, just to add what Kunjal said, this negative number is not a negative, it is the surplus revenue over and above the cost of supply that we have recovered from customer. Now, when the next tariff setting happens, this surplus will get adjusted from ARR. Meaning, thereby, that our tariff will be lower than our cost in the next tariff period and, obviously, that will help us in improving our competitiveness along with the — among the competitors in Mumbai distribution.
Mohit Kumar
Understood, sir. My second question is, what is the status of Mumbai HVDC project? Are we expecting it to commission in the Q4 or it will be a most likely spread out phenomenon in F ’26? And my second question, again, on — the second HVDC line, which is won, what is the progress, when we expect the awarding to be done to the equipment provider and what is the timeline we are looking at?
Kandarp Patel
So, Mohit, our Mumbai HVDC is right on track. There is only one issue, which is yet to be — in fact, we have to get the approval, which is for mangrove cutting, which is — matter is pending before High Court, but that involves only 1.5 kilometer of cabling. Everything else is on time and we expect to commission this project in quarter three next year. So, that will be completion on time, which will be a very, very significant event in the context of Mumbai, because you must have seen the history of Mumbai transmission projects, which are delayed for quite a long period, but this will be the one mega project, which will get completed in time. As far as Fatehpur-Bhadla HVDC project is concerned, so you must have seen from the various announcements and press that we have taken over the subsidiary on 20th of this month. We are into the final stage of discussion with the OEMs, and we hope to conclude those contracts in next one to one and a half months. And the period that is given for completion or commissioning of the first bi-pole is 48 months and the second bi-pole is 54 months, and we’ll be commissioning well within the time.
Mohit Kumar
And the date starts from the signing of transmission service agreement or is it from the transfer of the SPV?
Kandarp Patel
So, we have completed both the parts. We have signed the TSA, and we have also taken over the SPV.
Mohit Kumar
Understood, sir. My last question, sir, how is the pipeline of smart meter bidding and has the Tamil Nadu smart meter tender up for re-bidding now?
Kandarp Patel
I — what I gathered is that they wanted to do re-bidding because they have already got that approval from RDSS for getting a grant of that Government of India contribution of INR900 per meter, and we expect that they will be coming out with another bidding — re-bidding very soon.
Mohit Kumar
Understood, sir. Thank you, and all the best, sir. Thank you.
Kandarp Patel
Thank you.
Operator
Thank you. The next question comes from the line of Bharanidhar from Avendus Spark. Please go ahead.
Bharanidhar Vijayakumar
Yeah. Good morning. Am I audible?
Kandarp Patel
Yeah, yeah. Loud and clear.
Bharanidhar Vijayakumar
Okay. Yes, sir. So, my question is on the power demand growth. So, in our operating circles also, we have seen about a 3% year-on-year growth in power distribution. So, wanted to understand your view on where is this heading, in the sense, first, if there is a slowdown from last year in which segment or categories there is a slowdown and what is your outlook on this power demand growth, say, for the next one to two year period?
Kandarp Patel
So, the growth that we have seen this year is obviously much lesser as compared to last three years. And the stagnation is because that the additional capacity or additional consumption that was expected to get commission has delayed. So, one of the major would be commissioning of those metros in Mumbai, which we expect that it will now — has reached to a very good shape and will get commission in very short time. And a few of the data center projects that are supposed to come up has delayed. So, it is a delay for some time, but we expect that growth to remain healthy about 5 percentage per annum.
Bharanidhar Vijayakumar
Okay. So, are you seeing any drop in, say, demand from specific consumer category, like residential or industrial, anything like that?
Kandarp Patel
No, no. I don’t see any category in absolute term it will reduce. In fact, it will continue to grow at a steady rate, and the additional growth will come from this kind of intervention or commissioning of such a project, public mobility basically, and consumption like data centers.
Bharanidhar Vijayakumar
Understood. My second question is on the privatization opportunity in distribution that recently came up, especially in the state of UP. So, where is that bid in progress? Are we bidding for it?
Kandarp Patel
We will certainly bid for it. They have invited bid for appointment of consultant, and UP has been thinking of privatization since the last couple of years. And we believe that they have done a good amount of preparation. So, we see movement in that direction, and we believe that once a state like UP does privatization, it will also give signal to many other states, where they would also want to explore this option. And we see a good amount of opportunity coming up in distribution privatization, but the number that we are talking currently, we have not factored in those kind of additional opportunities.
Bharanidhar Vijayakumar
Understood. Just to be clear, you just said that they have invited for appointment of a consultant. Any timeline as to when there will be a final round of bidding and when we can expect, say, opening of the bids and if at all if there could be any challenges because it is a large state and usually privatization faces a lot of challenges from incumbent, employees, et cetera? So, your views from that.
Kandarp Patel
Yeah. So, this bid, I believe, has already mentioned the timeline. It is about 210 days. I am not pretty sure about it. So — but it looked like that UP wanted to conclude it early, and with the kind of administration at a state level, we think they will be able to pull it off this time.
Bharanidhar Vijayakumar
Sure. Okay. Thank you so much, and all the best.
Operator
Thank you. The next question comes from the line of Dhananjai from ASK Investment Managers. Please go ahead.
Dhananjai Bagrodia
So, congratulations on good set of results. Wanted to ask you, sir, in smart meter, what are we hearing from on ground in terms of implementation and how are we seeing that in terms of order pipeline going ahead?
Kandarp Patel
So, currently, Dhananjai, we have order pipeline of 2.43 crore meters. We have already deployed about 18 lakh meters. Our average rate is about — now we have reached to 15,000 meters per day. And I feel proud in saying that we have been doing far, far better as compared to all other players in the market. In fact, today, my sense is that the meters being implemented by all other companies on the ground, aggregate of that, we are implementing equivalent to that. So, we have already reached to 15,000 and we will be doing at least 20,000 average meters per day in the last quarter of this year. And as far as the bidding pipeline is concerned, there are few large states who has not gone ahead with smart metering bidding. Those are Karnataka, Tamil Nadu, Telangana, and Madhya Pradesh, and few of the states has done partial like Andhra Pradesh, Gujarat and few of the states are also facing very, very poor deployment. They might even think of cancelling and re-bidding that opportunities like — states like Rajasthan and UP.
Dhananjai Bagrodia
So, what you have assessed, what went wrong in Rajasthan and UP? And how are we seeing for ourselves in terms of pushback from any like local bodies or final consumers?
Kandarp Patel
So, when you take this kind of project for implementation, you have to assume that these kind of challenges will come on the ground and you have to handle it and implement it. And now we — our team has done fabulous job. They have been able to handle this kind of resistance on the ground. So, one of the key elements in managing those is that communication with the customer and we have been able to handle that part very well and have been able to reach to this level. Another key element is to understand the requirement of distribution company because every distribution company has a different processes for billing and metering. You need to understand that well and integrate your solution very well with their systems seamlessly, so that they don’t have — they don’t find any problem in getting your data and availing your services. So, that’s a key aspect there. And we being a distribution company understand that very well, and our team has also done an excellent job on that count as well.
Dhananjai Bagrodia
Sure. And sir, what will be the CapEx for this year and next year, total CapEx for FY25 and ’26?
Kunjal Mehta
So, we have completed INR7,500 crores of CapEx for the nine-month period currently. And by the end of this financial year, considering the smart meter deployment, the CapEx in transmission and distribution, we’re likely to close around INR12,000 crores of CapEx by the end of this financial year.
Dhananjai Bagrodia
And sir, for next year, roughly?
Kunjal Mehta
Roughly, basically, it would be in the range of around INR18,000-odd crores for FY26. Considering that we have to deploy all the transmission projects, which would roughly around INR12,000-odd crores in the transmission CapEx itself.
Dhananjai Bagrodia
And then the remaining CapEx would be for?
Kunjal Mehta
Would be largely contributed by smart meters, where we would go aggressively as KP sir mentioned that it would be around 20,000 meters per day. So, there we would have to deploy more CapEx in smart meters.
Dhananjai Bagrodia
Sure. Thank you, sir.
Operator
Thank you. The next question comes from the line of Pradyumna Choudhary from JM Financial Family Office. Please go ahead.
Pradyumna Choudhary
Yeah. Hi, sir. Thank you for the opportunity. So, my first question is, why — pardon me for being a bit new to the company, so some of the questions would be basic. First question is, on the distribution side, we’ve seen a flat EBITDA, operating EBITDA, Y-o-Y. And the EBITDA number has even declined by 17%. So, what is the reason for the same?
Kunjal Mehta
So, that’s because of the reduction in the asset base or regulated asset base in the distribution business, largely on account of the carve out of Dahanu power plant, which was completed last quarter. Now, once the Dahanu power plant is out of our way, we will see stable EBITDA in the AEML business. In fact, we have huge plans of capitalization coming up in the next one or two quarters in AEML distribution business, where we would see that around INR2,000-odd crores of EBITDA being done during the next year or so. So, basis that, we will see a stable EBITDA from EBITDA. The drop is largely on account of Dahanu power plant.
Kandarp Patel
So, just to add what Kunjal said, the drop is on account of Dahanu and also on account of delay of one project, which is BKC 220 kv project. Now, our regulatory asset base right now is about INR7,500-odd crore. And by the year-end, with all capitalization of the CapEx that we are doing in distribution and that particular project, the EBITDA — sorry, the RAB will reach to about INR9,000 crore by this year end.
Pradyumna Choudhary
INR9,000 crore will reach by year-end from what number currently?
Kandarp Patel
INR7,627 crore.
Pradyumna Choudhary
INR7,627 crore, fine. And secondly on the smart meter side, what sort of EBITDA are we targeting over the next two years, like do we give a number?
Kandarp Patel
The balance smart meter opportunity is about 10 crores meters, and we will target about 20% to 25% at least of those bidding opportunities.
Pradyumna Choudhary
All right. All right. Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Love Sharma from JPMorgan. Please go ahead.
Love Sharma
Thanks management for the call. Just two questions from me. If you could just highlight what would be the debt outstanding as of December across the transmission and the distribution business AEML, and also the cash balances which you’re currently holding? And the other question was I think coming more of a follow up from the previous question about you do expect some tariff revision lower for AEML. Could you just quantify how much are we expecting for FY 2026 onwards?
Kunjal Mehta
Sure. So, Love, basically, the debt levels continue to remain same as was reported in September of close to around INR39,500-odd crores. We also have surplus cash of around close to INR9,000-odd crores, basis that we have a net debt of around INR30,000-odd crores and our leverage continues to be in the range of 3.1 to 3.3 times of our EBITDA. So, that position still continues to remain same, especially due to the proceeds of QIP. We have a healthy liquidity position in the company to take care of our funding requirements.
Kandarp Patel
On the tariff levels, on the tariff side, this INR400-odd crores of revenue surplus will translate to tariff reduction of about INR0.70 per unit.
Love Sharma
INR0.70 per unit. Okay. And so that remains only pretty much for the FY 2026 or do you expect it to be in the future years also to be lower?
Kandarp Patel
So, it can get spread out in a couple of years, but that depends — our application is already before MERC, and they will announce tariff for next year latest by 31st March.
Love Sharma
Understood. And how about the — because you are completing some of these transmission assets in AEML as well, like you just mentioned I think about one of the projects which will be completed this year, that build up in RAB and how will that be monetized in the future? Should we expect more like a mid-term tariff revision there?
Kandarp Patel
So, that tariff of transmission project that we commission in AEML doesn’t directly get included in my distribution tariff. It gets pulled into a state pool, and from state pool, I have to pay. And tariff of that is already factored in the ISTS tariff estimate that we have made for our distribution tariff.
Love Sharma
Okay, understood. So, that revenue will be separate from the distribution utility as such. Okay.
Kandarp Patel
Correct. So, in AEML, there are — now there are two streams. Earlier, there were three streams of revenue. One was from a generation of Dahanu, now which we have carved out. So, in AEML, we have now two revenue streams, regulated revenue streams, one from distribution assets and one from transmission assets. So, transmission — all transmission assets is a part of ISTS, and the tariff gets pooled with all other transmission assets of the state and then gets charged through distribution company, individual distribution company, basis usage of those transmission assets.
Love Sharma
Got it. Thanks. This is useful. And just again to confirm, the cash balance which you mentioned was about INR9,000-odd crores. Is that right?
Kandarp Patel
Correct.
Kunjal Mehta
Correct.
Love Sharma
Okay. Great. Thank you. That’s it from me.
Operator
Thank you. The next question comes from the line of Darshan Parmar from Jefferies. Please go ahead.
Unidentified Participant
I just wanted to get a sense on how much of smart metering bidding is still left, if you could quantify?
Kandarp Patel
So, Darshan, the smart meter bidding left out is about 10 crore, and those are mainly from the state of Andhra Pradesh — sorry, Telangana, Karnataka, Tamil Nadu, Madhya Pradesh, part of Andhra Pradesh and few other states.
Unidentified Participant
Okay. Yeah. Thanks.
Operator
Thank you. The next question comes from the line of Abhiram Iyer from Deutsche Bank. Please go ahead.
Unidentified Participant
Hi, congrats to the company on a good set of results and thanks for taking my question. I just wanted to ask, with the Dahanu Power Sale in the previous call, you’d mentioned that some of that proceeds are going to get — go towards reduction of debt. So, may I just quantify how much
Is the debt now at AEML, how much it’s been reduced by? That was question one. And question two was, has the company been in progress on a plan for refinancing its upcoming bond? There is an ATSOL bond coming due in 2026. Any imminent plan for that?
Kunjal Mehta
So, at the AEML debt level, yes, the proceeds would be applied as per the AEML bond documents, where we can use the proceeds of Dahanu towards business as well as reduction of the debt. Part of the proceeds have been used to repay the debt of the company of about INR400-odd crores during last quarter. And — so, currently at AEML, there is no increase in the — I mean, there is actually a reduction of the debt. We currently have around $880 million of bond outstanding and $300 million of SLB bond outstanding. So, $1,120 million of bond, which is outstanding at AEML level. So, that is at the debt level.
Sorry, what was your second question?
Unidentified Participant
The second question was, you also have a USD public bond, which is coming due in the wider transmission company at ATSOL in 2026. So, are there any plans towards refinancing this or coming back to the market for this?
Anupam Misra
Yeah. So, I’ll answer that. This is — Kunjal, I’ll take that, Anupam this side. So, I think for that one, we need to stay true to our capital management plan that is issue at tenor. It will be similar to the 2036 paper that we have outstanding, which is an amortizing paper and it was issued in 2019. So, this one, when it comes due, three to six months prior to that, you should be seeing us tapping the market for a term takeout of that, which will be an amortizing structure. We have the option of both private placement and public market for that instrument.
Unidentified Participant
Thank you for the clarification. That’s it from my side.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Sagar Parekh from One Up Financial. Please go ahead.
Sagar Parekh
Sir, two questions. First is on the transmission side, you mentioned we have about INR54,000 crores worth of CapEx to be done, right? INR55,000 crores CapEx would translate to how much of incremental EBITDA?
Kunjal Mehta
So, INR55,000 crores of project currently based on the tariffs which we have quoted will give us a INR7,600 crores, INR7,700 crores of tariff which is there. We continue to maintain 92% margins — or 93% margins in transmission business.
Sagar Parekh
Understood. And you said INR370 crores would be the incremental — in Q4 incremental tariff revenue from the four projects that you will be commissioning?
Kandarp Patel
Correct. But that’s a part of INR54,000 crores, right?
Sagar Parekh
That’s a part of it, INR7,600 crores. And second question is, on the debt side, we have 60% of our debt, I think, on the US dollar denominator. Correct me if I’m wrong, but 60% is what is the foreign debt? So, with the current rupee depreciation, what are your thoughts on this and how do we account this? Because I think most of the debt is more than five years or something? So, just wanted some clarity on this as well, please.
Kunjal Mehta
So, what we generally do is that as soon as we take an overseas debt for a rupee — I mean, dollar denominated debt, we hedge the entire debt, so that currently our entire portfolio is hedged both at AEML as well as AESL levels. So, we are not significantly impacted because of the rupee depreciation. So, it is fully hedged.
Sagar Parekh
Fully hedged. So, the hedging cost would come in the finance cost, is it?
Kandarp Patel
Correct, correct. So, even today, whatever finance cost that you see is with the hedging cost. That is not going to be any incremental one. So, it is already there.
Sagar Parekh
But if the dollar — I mean, the rupee depreciates, then is there a mark-to-market loss that we have to book by any chance? Because I believe even hedging means that there would be at some point that would — you would reverse that entry. But in the near term, would that be any kind of mark-to-market losses?
Kunjal Mehta
There is an M-to-M loss, but then there is a derivative gain because of the assets — I mean, the underlying assets. So, from that perspective, it becomes neutral.
Sagar Parekh
Neutral. Okay, okay. So, no impact of the rupee depreciation on our balance sheet for now?
Kunjal Mehta
Correct.
Sagar Parekh
Okay. That’s it from my side. Thank you.
Operator
Thank you. The next question comes from the line of Giriraj from Visaria Family Trust. Please go ahead.
Giriraj Daga
Yeah. Hello, team. First, some clarification on the operating data what we report. So, in the pre-quarter update also, we mentioned about the decent jump in the network length and the transmission capacity. Somewhere about 14% quarter-on-quarter and 19% on the quarter-and-quarter of transmission capacity. But like is it total capacity or is it sir which is about to be commissioned? So, I just want to understand like there is no quarter-and-quarter increase in the revenue, not material. So, is it the under-construction capacity what we are mentioning here or it is the commissioned capacity what we are mentioning here?
Kunjal Mehta
So, 25,000 circuit kilometers is the total, all put together, or — even under construction is included. Currently, close to 20,000 circuit kilometers have been fully commissioned and the balance 5,000 circuit kilometers are under construction.
Giriraj Daga
Okay. So, this number will not lead us to any conclusion on the revenue side of it? Because it included–
Kandarp Patel
Correct. So, I think, Giriraj, what is important number from revenue side to track is the CapEx that we have incurred or capitalization of that CapEx.
Giriraj Daga
Understood, understood. That you have mentioned decently in the PPT, I got a commissioning also. Next question on the smart meter side. So, when you mentioned that you will be commissioning about 20,000 meters per day, and roughly let’s say in 90 days we will talk about 18 lakh meters. So, should we assume a CapEx of about INR1,000 crores because about INR5,800 per meter CapEx, is that right thought process?
Kunjal Mehta
So, our target is to do 70 lakh meters during the next financial year, which would roughly translate to around INR3,500 crores to INR4,000 odd crores of CapEx for smart meter during the next financial year.
Giriraj Daga
Okay, okay. And how do we book the revenue here? I understand it’s a INR900, the subsidy what we will get and then from the 31st month, the revenue will start kicking in. But will we be doing — so generally on an Ind AS basis, we will be doing on an accrual basis accounting, right, on an SLM basis?
Kunjal Mehta
No, no. So, the revenue under — because this is our — accounting would be under service concession accounting. So, it would be spread between OpEx as well as the CapEx revenue. So, therefore — and since the asset would be classified under SCA accounting. So, a portion of it would be OpEx revenue, portion would be CapEx revenue, and some portion would get attributed towards the interest income as well.
Giriraj Daga
Okay. So, when will start revenue occurring?
Kunjal Mehta
Yeah. So, the revenues in metering is accounted immediately on completion of — as soon as the billing starts. So, we have already started billing in certain three or four projects that we have commissioned and it is accounting on a per meter per month billing, basis the tariffs which we have quoted for each of the projects.
Giriraj Daga
Okay. Because since first quarter presentation that June ’24, the company had given the separate meter revenue and EBITDA, but this number is not there for the second and third quarter PPT? Separate segment reporting on the meter side of it. So, if–
Kunjal Mehta
So, because the amounts are not that significant for smart meters in the current quarter. So, therefore, it is not being separately shown on the segmenting reporting as per the Ind AS thing. I think it’s the segmenting reporting for smart meters would come up the next financial year when the smart meter revenues would be a sizeable number.
Giriraj Daga
Okay. Understood. Thank you. That’s all from my side.
Operator
Thank you. [Operator Instructions] As there are no further questions, I will now hand the conference over to Mr. Kunjal Mehta, Chief Financial Officer. Please go ahead.
Kunjal Mehta
Thank you all for taking out the time and joining the call. We will continue to engage with you, and in case if you have any clarifications or further information that you have, you can reach out to our IR team, who will take on any of your additional information or clarification. Thank you all, thank you once again for taking out the time.
Operator
[Operator Closing Remarks]