Inox Wind Limited (NSE: INOXWIND) Q3 2025 Earnings Call dated Jan. 31, 2025
Presentation:
Operator
Conference is now paying with in India to offer a solution to customers. This will also open up additional revenue stream for our EPC, Inox Renewable solutions and our INOX Green. Finally, a brief overview on the macro outlook. In the current financial year, around 15.5 gigawatt of wind-related tenders have been awarded, including 13.6 gigawatt of hybrid RTC, FDRE and 1.8 gigawatt of plain-vanilla wind. Tariff continues to be competitive in the range of INR3.2 to 3.3 per unit for wind solar hybrid, around 3.6 units for plain-vanilla wind and 4.25 to INR4.56 per unit for FDRE project in the recent auctions. Demand from the C&I segment, which is over and above those figures continues to gain pace. We expect the pace of awarding to continue and PPA for divored project to be expedited resulting in incremental orders for players like us. With that, I will now hand over to Mr Jain for his remarks before opening the floor for question for Q&A.. Thanks, Katie. Good afternoon, everybody. As promoters, we are very confident of our wind business growing exponentially, given the opportunities that the sector beholds, as well as the solid current positioning we’ve created for ourselves. The growth fundamentals of India’s renewable sector are strong and the country continues to take rapid strides towards its targets. With the unparalleled opportunities, we have gone ahead and established ourselves across the entire value chain of renewables, be it manufacturing for both solar and wind, project development and execution, O&M as well as power generation now. We believe all these businesses are aligned and provide large synergistic benefits for INOX Wind. With the country growing going largely the hybrid way, the INOX GFL renewable arm and particularly INOX Wind is very strongly positioned to capture the mega opportunities ahead of us. And we hope to continue to create enormous value for all our stakeholders. Thank you and we’ll open the floor up to Q&A for the team. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles, the first question is from the line of Vishal Singh from investors. Please go-ahead. Thanks for the opportunity, sir, and congratulations for the blockbuster results. My first question would be we are done with 469 megawatt and another 31 megawatt is left. Are you still guiding us for 800 megawatt for this fiscal year, sir? Yes, we are still guiding for that. You are, please. Can you repeat that, sir? Yeah. So we continue to maintain our guidance for FY ’25 of 800 megawatts and believe that we are on-track to achieve that. Okay. Thank you, sir. And what I can see is that in Q3, we have maintained a 29% of EBITDA margin and what I can see is blended margin for the 3/4 for this fiscal year is 26.5% across. So you had earlier guided us for 17% margin for this fiscal year. Are we — you are still on the same margin or you’re guiding for something more? Or you can directly guidance for the Q4. FY ’24 is concerned, excluding the one-time income of INR70 crore, so our EBITDA margins are somewhere now 22 odd percent and the consolidated margin for nine months somewhere around 23-odd percent, excluding the other income of INR70 — INR70 crore. Okay. We are maintaining our guidance of 17% on a yearly basis. And we believe we are — we doesn’t give any guidance basis upon the quarterly basis. No, for the full-fiscal year, are we on this 17% fiscal year, we maintain our guidance of 17% for the full-year. And our guidance at 17%. With the caveat, there could be upgrades going further, but we maintain our guidance at 17% for the full financial year. We do not give out quarterly upgrade guidance is any no, I understand that, sir. Thank you for that. And last-time we had talked about the demerger of that the EPC subsidiary. So when — when that is going to happen, sir. What is the Board approval for demerger of the substation business from Green has already been taken in the last Board meeting. The scheme has been filed with NSC and BSC and we are waiting for their approval. Post the NSC and BSC approval, we will file the scheme in NCLT and we’ll take it forward. So that is on-track. Okay. Thank you very much, sir, and good luck for future. Thank you, sir. Thank you. Thank you. The next question is from the line of Aniket Nikum from ABN Capital. Please go-ahead. Thanks for the opportunity and thanks for — and congratulations on a great set of numbers, sir. My first question was maybe just picking-up from the previous participant. You know, in the — in this quarter and in the nine months, we’ve delivered a sort of low-20s type margin already. So just wanted to check if some of our initiatives that we had talked about in terms of cranes and other sort of in-sourcing has started to be implemented and it is in the numbers already or is that going to happen a little bit later? Yeah. Thanks for your question. So as we have mentioned in our initial remarks. So the first set of cranes will be operationalized within this financial — within this quarter itself and will be reflected from Q4 onwards. And as well as your question and the earlier question. So see, our margins, so what we have guided, we maintain that. It’s 17% plus. What we’ve achieved, we hope to maintain our guidance basically at 17% plus. And we will be. And we’ll come back to you if there’s any guidance our margin because we’ve already done one upgrade in that we’ll come back to that 17% for the full financial year. And we maintain that guidance for the full financial year with the caveat that there could be upgrades going further. But we do not want to upgrade guidances or relook at guidances every quarter, number-one. And number two, with respect to some of the other initiatives that Anshuman mentioned, some of them are going to kick-in over the course of this quarter. So they are not factored in yet into our margins. That’s something which will get further — will kick-in further from Q4 onwards. Got it, sir. Very clear. My second question was maybe if you can comment a little bit on, you know, how are you thinking about your order book and participating in various tenders and so on, because obviously, you are already sort of quote-unquote sold-out for the next two years. So how do customers view that and how does that dynamic work, if you can give some qualitative comments on that will be helpful. No, we have — as you would have seen, we have long-term relationships with many of our customers and this gets done with the repeated orders. As on-date, we have 3.3 gigawatt around order book, which mostly covers broadly if I see that for the next two years or so. That doesn’t mean that we are also participating in many of the bids. We have bidded for the government vendors. We are discussing with C&I customers, which are some of them are in very, very advanced-stage. And as the time comes, will we keep announcing. So we expect growth from across customers because the demand is very-high across customers and including CAG. Wonderful to give a number, but yes, we have too close orders during this quarter next quarter perfect, sir. Thanks again and all the best to you. Thank you. The next question is from the line of Paraj from Arjav Partners. Please go-ahead, sir, I have two questions. One is, other than, who are the international competitors we have in our business? That is one. Second is US going out of Paris Accord. Will it have any impact on the solar buildup and the capacity in India in terms of the pricing or demand? So of course, you took one-name in terms of competition where we are working on — in Indian sector, but you do have some Chinese players and as well as you have some multinationals. But as I see, coming back to your second question as well, immediately don’t see any impact. And overall, as I see, some of these multinationals who are sort of producing in India, but they are mainly using for their own export orientation, they are nowhere possibly they are not very competitive also from a cost perspective, won’t be able to come to some of the Indian players. And there are Different, I would say, cross and cons with respect to Chinese. For example, MNCs and Chinese, they don’t offer while we offer as well where almost 50% market is still 40% to 50% market is still chunky. So from that point-of-view, immediately don’t see any impact from other players. I think we — we continue to maintain our position, our relationship across our customers and don’t see any issues from the order inforce point-of-view. So the second question was, we have spoken — in the presentation, we have given a very aggressive buildup on the solar side. How are is it going because the tenders are coming in the form of hybrid tenders, are we building that for keeping that in mind or there is some other is definitely a synergy out there. And as Devansh also said that, we see different synergies and in fact, there are quite a few hybrid tenders coming up and we will use definitely our solar mite to participate in both solar and wind bit both as such. So there is increasing trend. Even in my talk, I said that increasing trend for hybrid and and we will definitely take that advantage. Again, the solar business is in the private domain. That’s got nothing to do with iron. What we’ve done though is that there are a lot of synergistic benefits for iron in EPC, in hybridization, in operations and maintenance, as well as participating in many tenders, which earlier we would not because we would not tie-up with some random company for I think this is very good clarification. Thanks a lot. Thank you. Thank you. The next question is from the line of Prajiman Chaudhary from JM Financial. Please go-ahead. Hi, hi, congratulations on a brilliant set of numbers. My first question is regarding the FY ’26, like are we still maintaining that 1,200 megawatt guidance or are we expecting something above, something lesser, if you can just help with that. But no, we are maintaining still the guidance of 100 plus that kind of thing. The order book we have and the kind of planning we have, including on-the-ground and especially on our development, et-cetera, we are very confident to deliver that. All right. All right. And second, on the timeline for the demerger, last call, you’ve spoken about approximately one year. So we are still expecting to be around those timelines only or has there been any change? So as we have told in the last call also, we have filed a scheme with the BSE and NSC, the approval will come in couple of weeks. We are expecting the approvals in couple of weeks and we still expect the — we will get the demerger happen within next six to nine months’ time. Look, again, just to clarify, we are doing what we can as a company, but there are certain processes at NCLT and NSE BFC, which are not in our control. So the best that we can do is broadly guide what is happening or what has been happening in the past. And to that extent, as Manish added, we broadly would think this should happen in the next six to nine months. But for example, in certain courts nowadays, NCLTs are not sitting or they’re not closing or passing orders for months altogether. Now that’s something which as a company we cannot control. No, well-understood. Well-understood. Thank you. Those were all my questions. Thank you. Thank you. Thank you. The next question is from the line of Ketan Jain from Avendus Spark. Please go-ahead. Good afternoon, sir. Sir, as you mentioned in your opening remarks that there was around 15 gigawatt of wind capacity awarded in this year and you said that C&I is above this. If you could help me quantify this number in gigawatt, how big is the market size in India annually? In terms of project awarding, so that project is pretty clear. What the government has already announced is a 50 gigawatt awarding trajectory every year from FY ’24 to ’28. Out of this 50 gigawatt, 30 gigawatt is plain vanila solar, 10 gigawatt is hybrid, RTC and FDRE and balance 10 gigawatt and wind. Now what we are expecting is that a lot of plain vanila solar and clean vanilla wind will now shift to hybrid and that hybrid capacity awarding of 10 gigawatts will increase significantly as we’ve been continuously seeing in the last financial year as well as in this financial year. So I think the trajectory is pretty clear on that front. No, sir. What about the C&I capacity, which is over and above this? How much? How much — how big is that market? Fact is that C&I should be anywhere between to 5 gigawatts, 3 to-4 gigawatts every year going ahead because we see a very strong demand from many of our customers who are C&I players because a lot of them who export to the markets such as Europe and all have to have all of their supply-chain green. So they need their power also to be green. They can’t take great-based power because we don’t know the color of that. So because of that, even if you look at the various companies and their own renewable plans, you will get an idea of where the trajectory is. So what we expect is three to four gigawatts basically at this juncture, the C&I demand being per annum. Understood. Understood, sir. And just a last follow-up on this, our market-share in even in C&I would be around 20% to 25%. Yeah, see, again, so if in the previous calls also good maintain just to be — Anshuman, let me take that. 2025 — I mean, again, I think frankly speaking, we are not really looking at what our market-share is in PSU, what our market-share is in C&I, what our market-share is in retail, it does not matter. What we are concerned is how large is the Indian market and how much of it are we taking. I may take 100% PSU in a year and not do any PSU the next year. So it really doesn’t matter. As you can see, we have a very large diversified order book across PSUs, across corporates, across C&I, and I think that’s what’s relevant. We do not want to break it up into different segments and then give targets within those different segments. That’s not how yeah, sure, sure. Got it. Got it. Thank you. Thank you so much. Thank you. The next question is from the line of Sweta Dixit from Systematix. Please go-ahead. Hi, good evening. A couple of questions from my side. The first one being, could you explain what composes the other income this quarter for both Green as well for — I mean even if we remove Green of INR12 crores, that still brings our other income to INR70 crores this quarter. So first of all, a breakup of that. Another thing on the margin side, are we maintaining 18% for next year? And third question would be on the realization side that we are still lagging in terms of realization this quarter on a consol, we are still — we are below INR5 crores per megawatt. So how do we see this moving forward for the next two years when our execution or execution guidance remains intact. Yeah. Thanks,. So as far as your first question is concerned about the other income, we have created a lot of provision during the last three, four years in terms of the ECL based upon our conservative ECL policy. And based upon the improvement in the business, there are certain ECL reversal which has come into this quarter amounting to — amounting to near about INR70 crores, which has been recognized in the — under the head of other income. As far as far as the EBITDA margin for the next financial year are concerned, as we have already clarified that we are guiding for 17% plus EBITDA margins with the caveat to further upgrade as and when it will happen, we are not giving any quarterly guidance about the EBITDA. Just adding to it, so the initiatives which we have taken, so that will add 100 to 200 basis-points in the next financial year in FY ’26. And another clarification is that the 17% guidance which we have given is on the basis of full execution basically. So we generally don’t give the quarterly guidance. So next quarter, we won’t be giving any specific number, but for FY ’26, we can see an improvement of over and above our guidance, which we have given 100 to 200 basis-points given all the actions which we are taking that. So in terms of — in terms of your last question, which is execution per megawatt, which is coming somewhere around 4.5 crores 4.6 crore per megawatt, you see the EPC execution is continuously improving and we are currently executing EPC for multiple projects, right? As we book revenue on a million milestone basis post-monsoon, there are major milestones which have been happening and which is in the progress. We expect a substantial EPC revenue booking will be done in a quarter-four and in a quarter-four, your per megawatt quarter-four — quarter-four onwards and your per megawatt realization and the revenue will start reflecting from quarter-four — quarter-four onwards on a — a — on a normalized basis. So just for my clarity, if I look at the exceptional items also this quarter, so there are certain losses
Questions and Answers:
Operator
Related to ECL that we’ve already accounted for in the exceptional item that is below EBITDA. So I mean on the ECL, that is something related to some kind of charges, which has been charged by the past charges, which has been charged by the FECI. So it is nothing to relate with the ECL. So as I have clarified that the ECL provisions, whichever we need to provide, we have provided in the past years now since the improvement in the business and including — an improvement in the overall scenario, we are taking the of the ECL provisions and which have been happened in this quarter. Okay, understood. On a follow-up on the realization side. So when we taking into account the EPC that is yet to kick-off and that is expected to flow-in 4th-quarter onward. So that is something that kind of brings down or normalizes your EBITDA margin. So since this will also happen gradually, so at least for the first few quarters, we’re likely to see higher EBITDA margins and then maybe taper down to, 17% 18%. With absolutely right. As Anshuman has — Anshuman has told that, the EBITDA guidance of 17%, 18%, which we have given — given on the full execution basis. So in one particular quarter, there might be some incremental supply of the, I mean some play in tower and EPC. So the quarter-on-quarter the EBITDA margins can differ, but we — as we have answered multiple times, we are maintaining our guidance on the EBITDA margin with the caveat for the further business improvement. All right. One last question, just a smaller class, ma’am. Can you please come back-in the question queue for further questions. Thank you. Thank you. The next question is from the line of Akash Mehta from Canara HSB Life. Please go-ahead. Hi. So just one question on — like with the decline in battery prices that we have seen, now more solar plus battery is also like, I mean, coming up. So how do you see — I mean, will there be any impact in terms of incremental demand for wind or I mean you believe that wind, solar and battery, all three will kind of continue to grow. Yeah. So let me take that one. Battery every year. I think even with the storage, solar as wind will continue. Let’s not forget, battery is one-way to save that energy storage. But at the same time, generation is between solar and wind. And solar has its own uniqueness advantage of the day, while wind is more in the evening and in the night sometimes or during the certain time. The storage is a crucial role to play. And as the storage is coming more-and-more cheaper, the power will becoming getting more-and-more from that point-of-view. But overall, just to answer your thing, as we believe that all three combination as it is going on right now, more-and-more FDRE bids are coming, it will continue to ramp-up in those directions. Katie, just to add, while battery costs have declined, the arbit charge is still hugely significant. So you’re doing — wind, you’re doing hybrid, you’re doing solar, FDRE, battery, all of this is being done for absorption of renewable energy on a massive scale. We’re not talking of 2, 3, 5 gigawatt. You’re going to have 40 to 50 gigawatts of renewable energy pumped into the grid, you’ve got to stabilize. And if you have, say, 30 to 40 gigawatts of solar and say 10 to 15 gigawatts of wind, which is the government target, we may realistically do maybe 30 gigawatts solar and 8 to 10 gigawatts of wind, you have to take care of the timings when this is not available and wind cannot go to the extent of 30 gigawatts in India, at least it’s not visible at this point in time. So battery is a good alternative to that. However, the cost of battery itself is still obnoxiously expensive compared to the arbitrage between wind and solar. Yes, it’s come down drastically, but it continues to be hugely expensive. Going-forward, it will continue to come down and that will enable more-and-more absorption of renewables, which will further replace thermal and coal-based power in the years to come. Thank you. Okay. Thanks a lot. That’s it from my side. The next question is from the line of Nikhil from UTI Mutual Funds. Please go-ahead. Yeah. So I just have a single question regarding your execution. The number which you have mentioned for nine months post 70 megawatt must be the supply of turbines. So if I have to understand what is the exact commissioning on-ground for the turbines that we have supplied. If you can provide that number. So as on-date, we have approximately 200 megawatt ready on-ground and awaiting approval for commissioning. We continue to execute as we speak during this quarter three and quarter-four. And I think possibly you know as we go along, the execution numbers are improving. Okay. So out of 470 megawatt, 200 has been really ready for commission. Okay. And sir and just to add, there’s going to be a lag of a quarter or two in terms of whatever you build, whatever you supply and build is not — is not going to be something that you’re going to be ready for commissioning. So I think on-ground is good. And I think from a Q4 perspective and as we move forward, on-ground execution is only improving. A lot of the on-ground challenges are going, some of the new laws in the country with respect to connectivity grade evacuation approvals are all smootherning. So I think going to see more-and-more commissioning going-forward. Okay. Okay. And just a follow-up on that. I mean, are you seeing some stress? I mean, since you’re supplying and if the turbines are not getting commissioned, there will definitely become a time when the supply — the customer might ask you to slow-down the supply. So are we facing some kind that kind of a situation anywhere? No, not at all. You’re not saying as very clearly, there is always a closer to gap as in terms of supply and execution. The execution will go continuously hand-in-hand. And as I see that, roughly a number I supply and the number of I’m executing every month is very, very similar and I’m trying — we are trying to catch-up in-spite of the hurdles on-ground or as you know, getting the connectivity issues with the CTU and all getting cleared from that point-of-view. So don’t see those kind of situation immediately coming up. And as you possibly also know that we — one of the most is our development from that point-of-view. So we continue to build-up more development, more connectivity, more connection so that this kind of situation possibly should not come at all. Sure. Sir, just a last question on the split of the order book, how much is EPC and how much is pure supply? Yeah. So your equipment supply is roughly around gigawatts and balance is 1 gigawatt is pure supply. Yes, 25% to 40%. Sure. Thank you and all the bell, best. Thanks. Thank you. The next question is from the line of Hanshal Thakkar from Lalkar Securities Private Limited. Please go-ahead. Hi, gentlemen, congratulations on yet another stellar quarter. Just a very quick question, just trying to understand the applicability of, you know the deferred tax this year. As I understand we have carry-forward losses still available. So is this deferred tax applicable to the other income, which is not available for set-off? Yeah. Hi,. As far as deferred tax is concerned, the company has adopted for a new tax regime this quarter and filed the income tax returns and everything accordingly. And the impact on the deferred tax is due to the adoption of new — under the new tax regime. So whatever the deferred tax we have recognized till last year, year based upon the old tax regime of 33 odd percent has now been now been standardized based upon the new tax regime, taxes, tax. This is just a one-time charge. It is just a one-time non-cash charge. Okay. Lovely, lovely. That’s great. Congratulations again, sir, and all the best. Thank you, Ansul. Hi. Thank you. The next question is from the line of Preet Nagar from Wealth Invesor. Please go-ahead. Yeah, good evening, everyone. So really, really happy to see this kind of execution and kudos to the team. I think the real question I wanted to ask is to. And, the question is that this year — this financial year, I think there’s a 1,300 odd plus kind of megawatt win on the order book, if I’m correct. And about 700 odd is coming from the group company. So just outside the group company, the company has won around close to 600 megawatt, while a lot of bidding has happened, lot of winning has happened. So can you shed some light as to why that order and win rate is a little bit lower and what should we be looking at going ahead in terms of where this order book can be? Yeah. I’ll try and-answer that and then should chip-in. First and foremost, I think over the past six years, we’ve had zero supplies to group companies and I think it’s very important to note that Inox wins entire order book over the past five To six years during the bad period as well as now over the past 18 months when we’ve rebuilt the entire business is built on very strong third-parties such as NTPC, CESC, Continuum, Hero, and XY companies. Having said that, if the Group has a large captive plan going-forward, it’s just obvious and natural that we would supply to ourselves at-market rates. So effectively, today we have a 3.3 gigawatt order book after executing almost 500 megawatts over the course of this year, we’ve added not just group orders, we’ve added a lot of external orders. And from our perspective, there’s no way we can create an order book which is longer than two years. Unlike some of our competitors, we have no hello between where we have a limited equipment supply and where we take this chunky projects either with DSUs and some of the very, very key strategic customers. So obviously, we have a pipeline ready for some of the — for next financial year or year-after and we take advantage of that in terms of giving a sort of a quick pipeline of quick commissioning — commissioning to some of our investors. Right, right. Sir, the next question was, while we maintain our guidance of 17% EBITDA margin. So then the back-of-the-envelope calculation sir is that because we’ll be executing or completing more EPC in the 4th-quarter, our margins will be in mid to low-single digit. Would that be right, given that we are booking more revenue for the completion part of the project? Would that be the right way to look at it? Yeah. Okay. Look, let me take this question. I’ve been hearing multiple people asking about our margins. So first and foremost, I just want to reiterate that margins for the full-year will be much better than what is already in the public domain. I think we’ve given enough hints by saying that we’ve upgraded margins to 17% and we maintain them at this point in time with the caveat that we can further upgrade it. As many of you would know, over the past couple of quarters, we’ve repeatedly upgraded EBITDA margins. We’ve gone from 14-odd percent now to 17%. Having said that, I think for Q4, we would have — I don’t think it’s going to be remotely close to-single digits. It’s going to be much better. It’s going to be very well. But at this juncture, we don’t want to get into a point where we are saying, look, our Q4 margin will be X, overall will be zer, why? We’re saying for the full-year, we are 17% plus. And we keep the caveat that we will — we have the right to further upgrade this. We have not said that we have the right to further downgrade this. But let’s leave it at that. Let’s not get into too many debates and discussions, what is it, how is it? I’m reiterating that for the full-year, we will be better than 17% that we’ve guided. That’s all. And I don’t think we want to take more questions on this. Thank you. Sure. Got it. Thank you. And the last question was, just broadly seeing on the industry point-of-view, we see that there are some challenges on the land acquisition and the evacuation part. So do we — do we feel that would impact our ability to do 800 megawatt this year or 1.2 gigawatts next year and how does one look at it? Yeah. Thank you. Look, again, just be — let’s be very clear. We’ve guided for 800 this year broadly and we’ve guided for 1,200 next year broadly and say 2 gigawatt thereafter. I mean, this is keeping in mind the on-ground realities. Now sometimes different people ask us, did you do 50 megawatt extra commissioning, did you do 10 towers more, did you do 10 locations less? It doesn’t matter. You need to look at the larger picture, whether 1/4 here, 1/4 there, 50 megawatt year, 50 megawatt there, it doesn’t matter. I mean, if we’ve guided for 17% EBITDA margins, for example, for the full-year, we are at 22% currently, excluding the one-off items. So what should we do? If we are doing — in certain areas, we may be 10% better in certain areas, we may be 2%, 3% or it doesn’t matter. Having said that, I think we are very confident of next year’s numbers. Even for this year, we are broadly on-track with what we’ve said. And we have — honestly, if you look at the EBITDA for the full-year and whatever we’ve guided, I think we are on course to beat that guidance, frankly speaking. Sure, sure. Got it. Got it. Thank you. Just one quick question was on the other businesses that we are developing, the cranes, etc. So what will be the capex outlay that one could factor-in for FY ’26? So broadly, the capex guidance which we have given for FY ’26 and FY ’27 is between INR50 crores to INR75 crores. Okay. Okay. Got it. I’ll get back-in the queue. Thank you very much. The next question is from the line of Nikhil from Kizuna Wealth. Please go-ahead. Yeah, hi. Thank you for giving me the opportunity and congratulations on great set of numbers. Most of my questions have been answered. Sir, my last — just the question is like you were talking about on-ground challenges like are those related to more of a land evacuation or something else, like with the commissioning, so can you just elaborate more on that? I think as I said, it is as usual, it is not that they have come now. Either you do these are infrastructure project and you are doing other part of this country. So issues keep coming, whether it is land or whether it is connectivities, whether building up lines, but these are regular. They are not very abnormal and we have been executing, we have executed almost 3.5 gigawatts and we continue to build-up that. So nothing specific I’ll highlight that which has increased or something. These are usual challenges and we are able to manage more or less. Okay, sir, great to hear that. Thank you. That’s it from my side. Thank you. The next question is from the line of Kapil Manothra, an Individual Investor. Please go-ahead. Yes, sir, excellent set of numbers. I just — most of the questions have been answered. Just want to know the status of the merger between Inox Wind and Inox Wind Energy. The INOX Wind and Energy Limited merger are in the — are in the final stages. The next date of hearing in the early-February and that can — we are expecting to get it completed in this hearing. Just to add, Manish, I mean, honestly, I think we’ve done everything as a company. I said that even for the demerger of the common infrastructure assets from Green. But with respect to IWL, IWL, honestly, just like many of you, we’ve been waiting for the past couple of weeks or maybe two or three months when honestly, it should have been done, but unfortunately, the way sometimes the courts in India function, they just put Tari –. So effectively, we are just waiting for that. Other than that, we’ve got all the approvals, we’ve got all the banking approvals, all the shareholder approvals, all the creditor approvals. So frankly speaking, there is nothing left for us to do. It was a commitment to our minority shareholders that we will consumate this and we remain committed to it and we’ve done whatever we could do as a management. I’m hopeful that in the next hearing, they should get consumated. Otherwise, if it’s tarik, then we’ll probably have to wait for one or two tariks. Yeah, so definitely understand there are some procedural derails there at NCLT. So the next hearing is in February beginning and probably somewhere by March or April, it should get — it should be done. Honestly, if they — if they Hear and I mean they’ve heard it multiple times, they wrap it up, if they just sit and organize the code the way they should be running the court, then it should be done on the next hearing. Now if they get up or they don’t hear or they don’t attend then, you will go for another date. Frankly speaking, there’s nothing left to be done. Fair enough. I got that. Thank you so much. Thank you. The next question is from the line of Shah from Goyam Fintech Private Limited. Please go-ahead. Thank you for the opportunity. Most of the questions are already answered. So just one thing I would like to know is like the company is expanding into the services and the transformer, right? So what are the areas and how much revenue that this new business will add-in? Any guidelines? Your question, you’re not audible. You’re clear. Hello. Can you hear me? Please repeat your question do not. Yeah, okay. So the company is expanding into the train services and transformer manufacturing, right? So what is the expected impact on revenue from? Please use your handset at speed? Hello. Is it better now? Yeah. Now it’s better. Please go-ahead. Yeah. So yeah. So I was asking like company expanding into the and we see and manufactur transformer manufacturers, right. What is the expected impact on the revenue from these businesses? So again, I think think in backward integration, it will be utilized. You know we — and some of the part only will be utilized outside. So though the revenue will remain same, which we have guided for on a per megawatt basis, there will be improvement in the EBITDA margins, which we have already target on various other pushions. And also on it will be a deferred payment. So it will also help us on cash flows. Yes. Okay. Okay. And another thing is like now, the single largest order of 50 million megawatt, right? So can you tell me ask even. Can you please rejoin? We are not able to hear you clearly. Hello. Can we move to another question because we can’t know. He has to probably rejoin because it absolutely gobbled. Yes, sir. We’ll move on to the next question. It’s from the line of Pratik from Shub Lal Research. Please go-ahead. Hi, am I audible? Yes, you are. Please go-ahead. Thank you. Congratulations on good set of numbers. Kuros to the entire team. So I have — most of my questions are answered. I have one few questions left. On the 4-megawatt turbine, the higher grid turbine, is there any update for us? And in terms of profitability, should we expect better profits on per megawatt basis for the higher-grade turbine? And in terms of execution also, is it going to create any challenge because of — I mean, I’m assuming because of higher linear wind — sorry, that bleeds which is there in a 4 megawatt turbine. So basically, as I see that we are on-track and we are working on 4 megawatt and what we see possibly for know the commercial production will start more in the second-half of or possibly go towards more ’26. And in terms of execution time, see, there are pros and cons. Obviously the blade is bigger. But if you focus larger sites, especially and Gujarat, there are many of those sites. Obviously, you like to buy less number of lags. So it really depends from state-to-state project-to-project. There will be good projects where it will be 4 megawatt will be ideal and there could be a very complex sites where possibly our three megawatts will continue. So it will — as I see, going-forward in next two to three years, it will be finally a combination of both products going along. And yes, as we are moving to better product and again, as we are moving to better products, it obviously leads to better profitability, further increase in profitability for us as well as better returns for our customers, assuming we share the benefits for — between us and the customers. Certainly, it will lead to better profitability. I mean, which we’ve not guided for, which we’ve not spoken of at this point in time. But I think with a lot of the initiatives which we are taking, which are backward integration into cranes, our transformer manufacturing, more hybridization, the solar play, I think we would be looking at much higher profitability per megawatt as we move forward. Yeah, understood, Devansh. Very helpful., I just wanted some qualitative colors on the order pipeline. I would like to take the previous participants’ question further where you know the order inflow this year has largely been dominated by the group companies. So just wanted to have some sense on the order pipeline for say, I know FY ’26 we are booked, so FY ’27, ’28 and so on and so forth. You know-how does that look? I don’t know you quantify the number, but if you can help us understand in terms of the rates of the pipeline. I just put the perspective correct, it’s not as if the 1.5 gigawatt order broadly order inflow, which has happened has come from group companies that’s been about 500, 600 megawatts over next two years. And as I mentioned over the past six years broadly, there has been zero supplies to any of these entities. They did not exist. So effectively, if there is a large group plan, certainly we will supply to ourselves. Why not? I mean, we have the best turbines in the market. We would not go and buy any other Chinese product or for that matter, any other companies which come and go, we’ve probably been the strongest survivors with zero hair card in the industry. So we have full faith in our product and it’s just natural that we will do that, number-one. Number two, we’ve gone and diversified our order book. Last year we had questions are only with NTPC, only NTPC, only NTPC. Then we went to, we went to CESC, we went to Hero, we recently got. We have various other things in pipeline. But effectively if I’m sold-out for the next two years, what do I do? I’m not going to go and build a three, four, five-year order book, which are MOUs and paper agreements, unlike other competitors, that is not what we believe in and that is not something which we will encourage and go after. As also mentioned, there are multiple tenders in which we’ve participated. Some of them have been delayed. Obviously, with the government push now, a lot of those are going through. There are various other ITP agreements which are being discussed, which are large transactions. We’ve also had — don’t forget, our 3.3 product complete scale-up happen over the past two or 3/4. A lot of our certification requirements have been fulfilled recently. So effectively, what more are we going to go and do? So I — I think that’s a wrong statement or a wrong way to look at it. I think we’ve created a very, very robust order book, a very healthy order book. And I think, I think we are — we are very strongly positioned. I mean, as I’ve said multiple times in the past, taking orders has been the least of our worries over the past 18 months. Understood,. Anur, your point, just to add-on that we are very good mix of — yeah, we can call growth order which actually sometimes of the risk of the external work and also a very good combination of PSU and supply. So we continue to maintain and don’t know too much bank direction. That domestic order intake portfolio. We have a sizable tender had already done as well as a lot of repeat order being very different customers. So we have a huge pipeline order pipeline from that perspective. We should have very close with the two or already intact with us at this moment. Understood. Kalash, your voice was muffled, but I get your point. Just one follow-up on this. So with this kind of order book at this point of time, does it make us a little picky and choosy with the tenders, which are remunerative enough for us to participate because for us profits are the first thing. Certainly. I mean, it’s just natural that we have been selective, otherwise you would have been taking a lot of NTPC back-in there. I mean, we had to diversify, we realized that it could not have been only one, but it was important to stabilize the business 18 months ago when the sector was coming back. So yes, we are became choosing. I think we want to work with people who are financially strong and have the ability to pay. There are multiple people out there, but there’s no point working with people who can’t execute on-the-ground, who will continuously keep facing challenges. If you also notice what we’ve done is that we are increasingly moving to more-and-more equipment because our broader guidance, at least internally has been to be 50% turnkeyn equipment. Frankly, if we just keep turnkey, we’ll probably see 10 more names in our order book, but we don’t want to do that. Our 3.3 are to fully stabilize, where to finish all our certifications. It takes time and that’s also a moat in the wind business. It’s not something which you do and in one year you are plug-and-play and you are ready in terms of a new turbine platform. So you’ve seen two new orders recently, which have been equipment supply. We are working on multiple other equipment supply negotiations. And we are being very — I mean, we’ve strategically looked at certain PSU bids in which we want to participate in win. So I think we have a — we have a very strong strategy in-place with respect to how we want to grow and build this order book and who we want to work with? Understood. Is it fair to assume demands like PSU, C&I and IPP, all these tenders come at different margin levels? Broadly, broadly, I mean, plus-minus 2% here and there, yes, but PSUs generally gives you a slightly higher-margin, but now it depends. Is it equipment Supply? Is it a turnkey order? How I would answer that is basically always gives you a higher-margin in — with service equipment supply, I mean absolute profitability because in turnkey, let’s say it’s INR8 crores a megawatt or 6 crores a megawatt or seven crores a megaw, whatever it is, your absolute profitability is more. But in equipment supply, your absolute profitability is lesser, your margins may seem slightly higher. For us, it’s actually absolute profitability which matters. And I think what’s also important is we can’t do everything turns because turnkey where you’ve got all the headache of land evacuation while we are very strong at it and we’ve got a large pipeline but you know operator probably we need your intervention here. I am unable to hear. Yes, the line for Divan has been disconnected. I hope your question was answered yes, Anshuman. Yes,. Follow-up or anything else that you want to you can continue on here. Offline. Thank you. Ladies and gentlemen, due to time constraint, this was the last question for today’s conference call. I now hand the conference over to the management for their closing comments. Thank you for joining today’s call and I hope you have a very good evening and a very great weekend ahead. Thank you again. Thank you. On behalf of Investec Capital Service, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.