KPI Green Energy Ltd (NSE: KPIGREEN) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Siddharth Thakur — Executive Assistant to Managing Director
Salim Yahoo — Chief Financial Officer
Analysts:
CA Garvit Goyal — Analyst
Sagar Tanna — Analyst
Samrat Shah — Analyst
Ashish Rampuria — Analyst
Parth Kotak — Analyst
Gaurav Sharma — Analyst
Drishtant — Analyst
CA Amit Kumar — Analyst
Pavan Kumar — Analyst
Mayank Manikya — Analyst
Preet Jain — Analyst
Nishant Sharma — Analyst
Pawan Kumar — Analyst
Akhilesh Kumar — Analyst
Subash — Analyst
Nayan Shah — Analyst
Lehar Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to KPI Green Energy Limited Q2 FY ’24-’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Siddharth Thakur. Thank you, and over to you, sir.
Siddharth Thakur — Executive Assistant to Managing Director
Good evening, ladies and gentlemen. First of all, a warm thank you for all of you for joining for today’s call. I am Siddharth Thakur, Executive Assistant to our Managing Director, Dr. Faruk Patel. Unfortunately, Dr. Faruk Patel, due to unavoidable circumstances is attending to another important engagement at the moment. However, he’s poised to join us later in the call today. Dr. Faruk Patel sends his regards and wanted me to personally convey you his appreciation for your continued support and interest in the company.
In the meantime, we are happy to address any questions and you will direct them the same to our CFO, Mr. Salim Yahoo. Handing over the call to him.
Salim Yahoo — Chief Financial Officer
Hello. Hi. Good evening, everyone. It’s a pleasure to meet you here online today. I would like to extend a warm welcome to all our investors and stakeholders. Thank you for taking the time to join us for our half year ’25 — H1 FY ’25 earning call.
So, before we begin, I would like to give you a brief overview of our company’s outstanding performance in the first half of the physical year and share some exciting updates on our strategic growth initiative. We are proud of the robust growth we have achieved across key metrics in H1 FY ’25, a testament to the relentless focus of our team on project execution, operational excellence and strategic planning.
Speaking about our financial performance, we are pleased to announce that KPI Green has delivered strong results for the half year ended 30th September 2024. Let me take you through the financial highlights. Speaking about the revenue growth, our total revenue from operations for H1 FY ’25 stood at INR711.3 crores, marking an impressive 75% growth on year-on-year basis compared to INR406 crore in H1 FY ’24.
EBITDA growth, when we speak about EBITDA growth, I mean, it’s a key parameter in the profitability. So, EBITDA grew by 87%, reaching INR266.9 crores compared to INR142.5 crores in H1 FY ’24. This performance reflects our efficient operations and strong cost management across all projects.
Moving on to the profit after tax, our PAT doubled, recording INR135.9 crores for H1 FY ’25 compared to INR68 crore for the same period last year, representing a 100% increase. With the profitability growing strong, our EPS also improved substantially. So, our basic EPS for H1 FY ’25 came in at INR11.03 per share, reflecting a 76% increase from INR6.27 per share last year. I would request you to put others on mute, there is slight disturbance somewhere.
Giving you the business updates and strategic initiatives that we have taken, okay. In addition to our strong financial performance, I would like to highlight a few of the key strategic moves we have made this year: Number one, expansion of Independent Power Production, so what we call as an IPP, our segment where we invest our own capital and we set up the plant and we sell power to third-party in the utility scale or in the third-party C&I customers. Our installed IPP capacity as of H1 FY ’25 [Technical Issues]. I request everyone to please go on mute. Thank you. Thank you. And we have orders in hand for IPP of around 1.26 gigawatts which is the biggest order book till date in the KPI’s book.
Moving on to the second business segment, that is our Captive Power Producer, where we set up the plants for others and we sell the plant to them and we also do the O&M of that plant. So, our CPP business continues to show strong momentum with 336 megawatt installed capacity as of half year FY ’25. And we have ordered for an 1.148 gigawatt. So, both the segments have a strong order book and strong execution capabilities also are there. So, we expect this coming year also to be a strong performance as we saw this half year.
Moving on to technological advancement, we have adopted cutting edge technologies like single access solar tracker, bifacial solar panel, and AI-driven robotic cleaner to maximize the efficiency and generation from our solar plant. One of the biggest achievements of KPI in this particular half year was the net debt zero on standalone basis. So, KPI as on 30th September was net debt zero. So, there was no outstanding debt.
The outlook and future plans, I will just give a little bit highlight on that. Looking ahead, we remain focused on expanding our portfolio and enhancing values for our stakeholders. Some key targets that we have taken for the near future is gigawatt scale ambition. We aim to achieve an installed capacity of 10 gigawatt by 2030, driven by a mix of IPP and CPP projects. We also focus on geographical diversification. We are actively exploring opportunities beyond Gujarat to further diversify our geographical footprint across India. We have already work in progress in Maharashtra for a MAHAGENCO project.
Sustainability commitment. Sustainability remains at the core of our strategy, with significant reduction of CO2 emission achieved through our green energy project. Till date, we have helped reduce 43,69,449 tons of CO2 emission.
So, this is a little bit brief about our performance in this half year, along with some of the future outlook that we are planning to share. So — now I will open the line — Sanjay [Phonetic], you can open the line for question and answers if there are any.
Questions and Answers:
Operator
Sure. Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from CA Garvit Goyal from Nvest Analytics Advisory LLP. Please go ahead.
CA Garvit Goyal
Hi. Am I audible?
Salim Yahoo
Yes, Garvit, you are audible.
CA Garvit Goyal
Congrats for a good set of numbers. Like considering the kind of order book do we have and the order inflows are we expecting. What is the guidance for FY ’25 in terms of top line?
Salim Yahoo
See, I don’t know what you have seen that, till half year we have already done INR711 crores, which is almost 75% of what we have done in the whole last year. So, you can expect that — we expect that the growth will be in the range of 60% to 70% growth of what we have done last year. We expect that much growth. It can be a little bit more than that also. That is what we are planning, because order book that we have sufficient order book to execute. So, there won’t be any problem in achieving at least 60% to 70% growth. That is the minimum I am talking.
CA Garvit Goyal
Got it, sir. And sir, like the kind of environment we are witnessing in the industry, so what is the outlook for next say two years to three years in the terms of top line and the kind of margins we are currently doing, are these margins sustainable?
Salim Yahoo
Yes, Garvit, if you speak about the outlook on the top line, if we look at, there is a lot of order in the sector or what we say the potential in the sector as far as India is concerned, because there is lot of projects which are going on at various play, various DISCOMs are taking, private players are taking the projects. So, there is no deficiency of any orders or order in hand for any of the players you can see, that all the players are sitting with a lot on order book. So, potential on the order side is not an issue, whereas KPI is concerned, we have already explained to you that our order book is already full and there are lot of — still order book in pipeline where we are bidding for the tenders, where we are in talks with some of the conglomerate for CPP businesses also.
Coming down to margins, if you see, actual margin always is a little bit on the higher side because there are a lot of milestones. What happens in the margin is that we do a milestone billing. So, some of the milestones where there are no costs involved, those milestones also get built because of the rainy season. So, H1 margin will be a little bit higher compared to the overall margin, but we will be able to maintain our margin of 16% to 18% between that on the PAT level.
CA Garvit Goyal
16% to 18% is what you are saying, right?
Salim Yahoo
Yes, 16% to 18% at a PAT level this year, I’m talking about.
CA Garvit Goyal
And sir, you mentioned all the players are having a strong order book right now. So, the kind of competition in the upcoming orders, how do you see that? Like upcoming order will continue to flow in the manner that they have been flowing in recent past or how the picture looks like?
Salim Yahoo
Garvit, you need to understand that KPI — KPI is one of the players who has more than a decade of experience, whether it is wind, whether it is solar. So, very few player has these kind of capabilities, both wind and solar, and we have those capabilities. So, execution of order is an important part because all the players have orders, as there is a lot of potential in the market, all players have orders. But it is to be seen that who has the capability to execute on a timely basis without any overruns.
And that is where KPI’s USP is that, it is one of the strong executor. And if you see that all the orders that we have got because of our execution capabilities. So, from a KPI side, I can tell you that, orders everybody will have it. Now it’s the time that will tell you that which of the players are capable of executing the order on a timely basis. And here it is a track record of KPI that always — that speaks on itself. So, we don’t have to speak because there is a decade experience and a hybrid execution experience, which is solar and wind both. So, we stand out over there. That’s what I think.
CA Garvit Goyal
Understood, sir. That’s it to my side, sir. Thank you and all the best for the future.
Salim Yahoo
Thank you, Garvit.
Operator
Thank you. The next question comes from Sagar Tanna from Alchemie Ventures. Please go ahead.
Sagar Tanna
Congratulations on a great set of numbers. What is our outstanding EPC book sir, in terms of crores?
Salim Yahoo
If I tell you, the total CPP, what we call — you call it, EPC, okay, it’s around 1.1 gigawatt of CPP business, what we call that. Now the CPP business, if I want to calculate, it will be — because some projects are along with the material, you can say the panel or the wind turbine, and some projects come without them. So, overall, if you can see that, if 1 gigawatt approximately if I take 2 point — if you calculate INR2.5 crores to INR3 crores per megawatt that would be the order book you can see that in the EPC site at present. There are…
Sagar Tanna
So roughly INR2,500 crores. Is that a fair number?
Salim Yahoo
Yes. Yes, between INR2,500 crores to INR3,000 crores.
Sagar Tanna
Got it. And sir, so how much of it would have been won in the current financial year in FY ’25?
Salim Yahoo
As I told you, we do billing on a milestone basis. So, it is very difficult to actually tell you that exactly how much megawatt or something which we will get. So, it is very difficult to — so it depend on the existing. But as I told you, our top line will be 60% to 70% minimum growth over the last year top line.
Sagar Tanna
No, no. Sir, my question was not on the growth, sir. In terms of EPC order wins, how much did we win in the current financial year?
Salim Yahoo
How much did we win in the current financial year?
Sagar Tanna
That’s right.
Salim Yahoo
So, almost you can say that out of this 70% to 80% has been won in the current financial years in FY ’24-’25.
Sagar Tanna
So, out of the INR2,500 crores, INR3,000 crores of outstanding order book, roughly INR2,000 odd crores we would have won in the first half. Is that correct?
Salim Yahoo
Yes. Yes, yes, you can say.
Sagar Tanna
And what is the order pipeline for the second half?
Salim Yahoo
See, out of this INR2,000 crore, INR3,000 odd crore of the total order that we have in hand, okay, there will be a lot of overflow from this financial to the next financial year. So, you can say that approximately INR1,200 crores, INR1,300 crores would be something that — out of that 40%, 50% we are planning to close it this year. So, that will be — the remaining would be outflow for the next year.
Sagar Tanna
Got it. Thank you, and all the best, sir.
Salim Yahoo
Thank you, Sagar.
Operator
Thank you. The next question comes from Samrat Shah [Phonetic], an Individual Investor. Please go ahead.
Samrat Shah
Hello. Am I audible?
Salim Yahoo
Yes, yes, you are audible, Samrat.
Samrat Shah
Firstly, I would like to congratulate you on your wonderful set of numbers.
Salim Yahoo
Yes, yes. Thank you. I said thank you for the wishes.
Operator
Sir, the line for the participant has been dropped.
Salim Yahoo
Okay. No issues.
Operator
So we’ll move on to the next question. The next question comes from Ashish Rampuria, who’s an Individual Investor. Please go ahead.
Ashish Rampuria
Thank you. I think, first of all, thanks for continuing to perform extremely well.
Salim Yahoo
Thank you.
Ashish Rampuria
Thank you from my side, right. I think what the previous participant was also asking, what is the bid pipeline right whether in terms of gigawatt or crores that we have? I am not going to order book but the bid that you would have placed or the conversation that we had any…
Salim Yahoo
See the pipeline that we are looking at, at present is between 1.5 gigawatts to 2 gigawatts. That is the bid pipeline that we are looking at, where we are participating and all. Over and above the existing order book that I have.
Ashish Rampuria
And this is across CPP and IPP?
Salim Yahoo
Mostly CPP, because IPP we already have more than 1.3 gigawatts in hand. So, we will — IPP, we will slowly, slowly build because we already have on the plate. We will try to complete that as much as possible. Post that, we will start moving on to IPP. Because IPP, as you are aware, there needs to be a financial closure. There has to be lot of factors which need to be taken into consideration on the debt side and equity side.
Ashish Rampuria
Got it. Got it. There are also some conversations around the international expansion, right? So, along with that, if you can also throw the status of expansion, I think, into nearby states of, I think we have shown Rajasthan and MP, if I am not wrong, given the investor presentation. So, if you can throw some light in terms of that expansion, international as well as domestic states nearby?
Salim Yahoo
Yes. First, we will talk about the domestic expansion. We are already — as I told you, we have already moved on to Maharashtra. We have plans to move to Andhra. We have plans to move to Rajasthan. We have plans to other states also, the neighboring [Phonetic] state. But the one which we have closed is, one is Maharashtra. Rajasthan and all are at a — we can say that final stages where we are doing the discussions. Talking about the international, we are at a nascent state. We have discussions. We have a lot of inquiry from international players. We have spoken to them. But at present, I will not be able to give any details about that. But I can assure you that very soon you will see KPI at an international level moving on competing with international players also.
Ashish Rampuria
Got it. Okay. But — and this nearby state that we’re talking about and the fact that you send the focus will be CPP, should I assume that the conversation of the nearby states are the corporates too sort of under the CPP segment?
Salim Yahoo
Mostly CPP as I told you because IPP as I earlier also told that we have to look at a lot of factors when it comes to IPP. So, any state entering CPP will be a very favorable segment where I can enter fast. IPP will take a little bit time because there are rules and regulations depending on each and every states, what are the electricity act over there or the state wise. So, that has to be taken into consideration.
Ashish Rampuria
Got it, right. Last question from my side and I will join the queue. KP Energy disclosed that they got some order, significant order from KPI Green, right. Now I think they spoke about Phase 1, Phase 2, Phase 3, but I was surprised that they also spoke about doing solar work for us, right. Can you throw some color on that because I think they specialize in wind, right?
Salim Yahoo
Yes. Let me just explain you. KP — we have got this GUVNL — we have won the GUVNL tender for IPP for setting up IPP of 2 gigawatts or 3 gigawatts. And from that, order has been given to KP Energy, which has experience in wind, which has experience in solar also. They have set up their own plant of solar also. So, we have transferred majority of the order to them, so that they can execute our order faster. Because KP Energy, we know, and they can execute faster compared to any other players. And it is a hybrid order that we have got on the IPP and solar altogether. So, IPP also has a solar component. So, combined order we have given it to them, except for some components like maybe panel or something, which we might purchase directly.
Ashish Rampuria
Okay. And it was driven by the perspective of the lead timelines considering we understand the solar aspect. Wind, I totally understand. Just want to understand the fact that we have given also solar to them because it was a combined order so had to be structured together or was it more [Indecipherable] to manage timelines and things like that?
Salim Yahoo
Yes, yes. See two things are important. One is that surely timeline, you know our internal company or a group company will understand our timelines, deadlines, everything better than any other outside players. Secondly, it is — as I told you, we have a hybrid. So, in hybrid also they are working in that region. So, in hybrid solar also they will work in that region. So, automatically it becomes feasible for us to give the entire order to them because they are anyway have their manpower, everything on the ground. So, why not utilize the same manpower other than setting up another one? Yes. So, that was the key idea behind giving the order.
Ashish Rampuria
Got it. Understood. And I think also there’s some private placement that happened in one of the subsidiaries through the promoter of the group, right, if I remember correctly, this was about a month or so back, right. What was that related to?
Salim Yahoo
Sir, it is a subsidiary of KPI, Sun Drops, you can say, Sun Drops Energia Private Limited. In that subsidiary, anyway, I mean, promoter has infused a lot of unsecured loan to support our plant over there and everything. So, it was said that, I mean, rather than returning, why not give him a small stake in the company. So, that was a better option rather than curtailing the cash flows and giving it back to the promoter. So, that’s where the entire thought came into picture. And then we thought that why not? Because anyway, it is a subsidiary of KPI, where even the promoter has a majority stake.
Ashish Rampuria
Got it. So, what percentage stake has been given in the subsidiary on Sun Drops?
Salim Yahoo
I think that is there on the public domain. So I don’t have a figure right now.
Ashish Rampuria
[Indecipherable]
Salim Yahoo
Yes.
Ashish Rampuria
Thank you. I will join the queue. Appreciate it and all the best.
Salim Yahoo
Thank you very much.
Operator
Thank you. The next question comes from Parth Kotak from Plus91 Asset Management. Please go ahead.
Parth Kotak
Hi, sir. Firstly, congratulations on a good set of numbers and thanks for taking my questions. Sir, I have two questions, mainly on the order book and execution. One, as you rightly mentioned, your current order book is around 1.2 gigawatts, which would be about INR2,200 crores, INR2,300 crores. Could you elaborate on the anticipated timelines for order execution, especially for the large orders from MAHAGENCO and corporate clients?
Salim Yahoo
If you see this, 1.2 gigawatt is my CPP order book. So, we have timeline to complete them by — an average timeline is that by September ’25, we will have to complete this order. So, that’s why I told you that the 50% of the order book will get executed this year, and 50% will flow down to that next year. So, yes, on an average, I will complete it before September.
Parth Kotak
Right. And just I’m asking this because obviously we’ve mentioned it in the past that our average execution is about nine months to 10 months on a conservative basis, but MAHAGENCO would be a separate territory that we would be doing CPP, right. So, that’s why primarily the question.
And so, second question would be on debt and capital structure. With the recent QIP of INR1,000 crores and debt prepayment, how does the management view its future funding needs? Will the company seek additional debt or equity funding for upcoming projects?
Salim Yahoo
So, we all know that, we already have 1.2 gigawatt of IPP projects. So, naturally, I mean, there will be a debt which will come. But it will not come at one go. It will come in a phase-wise. So, we will be doing our Khavda project, once we — which is already in execution mode. So, a part of that debt will come from the Khavda, which is around INR500 crores to INR600 crores. And post that, that will also be for the other GUVNL project that we have won, 370 megawatt, 250 megawatt — 370 megawatt hybrid. So, there will be a debt which will come, but it will come in a phase-wise manner. But one thing I can assure you, that our debt to equity will never go beyond 2:1. It will be between 1.5:1 only. So, we are pretty gung ho on that, that we will maintain our debt to equity, even if we go full-fledged expansion capex. Sorry.
Parth Kotak
Super, sir. Super. Super. That answers my question. And thanks for taking my questions. I will join back the queue if I have the further questions.
Salim Yahoo
Yes, thank you.
Operator
Thank you. The next question comes from Gaurav Sharma from Anujay Properties. Please go ahead.
Gaurav Sharma
Hi. Congratulations on an excellent set of results. Can you hear me?
Operator
Sir, we can hear you. [Speech Overlap] a bit muffled. If you can use the handset please.
Gaurav Sharma
One second. Hello? Yes. Is it audible?
Operator
Yes, sir. Please go ahead.
Salim Yahoo
Hello, Gaurav.
Operator
So the line for Gaurav Sharma is dropped. So we’ll move on to the next question. The next question comes from Drishtant [Phonetic], who’s an Individual Investor. Please go ahead.
Drishtant
Hi. Am I audible?
Operator
Yes, sir.
Salim Yahoo
Yes.
Drishtant
Okay. So a couple of questions, sir. First of all, on the IPP margin, specifically on the GUVNL order, so given that obviously we are on reverse bidding and a lot of those projects that we’ve acquired, we have been quite competitive on them. So, the simple question here is, do you think that even on these orders based on your projections, we will be able to maintain similar margins. And overall, you incorporate all of this, and only after that, you are essentially confident that you will be able to deliver 15% to 18% impact margin in the coming three years to five years as well, right, which is what you mentioned previously on the call.
Salim Yahoo
Yes, IPP — you know, if I want to give a little bit understanding of our model, so we have IPP and CPP. IPP adds to the bottom line, because IPP margins, EBITDA margins are very high. So, if you look at my GUVNL projects, my EBITDA margin in IPP would be around 85% to 90%. Because after I set up the plant, there is no other costs, other than the only O&M costs which is very nominal. So, what — overall at the company level if I want to see, my PAT margin is derived by both the segments. So, overall if I see that at present my blended EBITDA would be around 33% to 37%. But as I go forward, when I increase the mix of IPP, my EBITDA, my PAT margin will also improve and my EBITDA margin will also improve. So, if I complete my entire — so my EBITDA margin — PAT margin which is around 16% to 18%, might go up to 20% when if I increase — 20% to 22%, if I increase my IPP mix in the total revenue. So, at present, if you see last year, it was around 13% to 14% of IPP revenue and rest all 86% was CPP revenue. So, it depends upon the mix. But we will be able to maintain the margins. So, that is sure for us.
Drishtant
Essentially, the reason behind the question is, I am not sure at what rate you’re selling, let’s say, units to your current private clients. And based on the reverse bidding, I just wanted to make sure that that price is pretty much in line and given that you see 85-odd-percent EBITDA margins on IPP even on the GUVNL orders that’s quite comforting. Thanks for the clarification there.
Then the next question is in fact on the land that you currently hold on your books. So, I understand you have about something in the range of 3,000 acres of land. Any rough estimate you can provide in terms of what would be let’s say the current value on an average even on a per acre basis? Just to kind of get a sense of what the value of this land would really be because on books obviously you will be carrying these on the carrying value and one isn’t aware what the real values is.
Salim Yahoo
Yes. So, if you see that, in FY ’25 quarter two, what we have mentioned that in our presentation also that we have 3,000 plus acre of land bank. Now in this there are two types of lands. One is the lease land, long lease, what we call as 27-year to 28-year lease that we do with the farmer and we take those land, and another is the own land. Now the own land would be around 500 acres to 600 acres and the rest of the entire land is a lease land. So, there is no cost for me for the lease land other than the lease that I have to pay for the land. Whereas the other parcel, which is my own parcel, what we call as 600 acre to 700 acre, that would be at around INR1.5 crores to INR2 crores per acre because this is close to the substation, close to the road, close to the highways. So, that is something which we have, but we have not reassessed the land on our financial. So, in our financials, you will find the land value of approximately INR100 odd crore. But overall the pricing would be around INR1,000 crores, I can say.
Drishtant
Understood, understood. That’s exactly what I wanted. So INR1.5 crores to INR2 crores average, you’re saying per acre of the own land.
Salim Yahoo
Yes.
Drishtant
That’s clarified. The next question, sir, on cash flows and specifically very important from an equity investor’s perspective, as you know how valuation work on the free cash flow basis. So, just to get some sense on the cash flow from operations, which has essentially been negative at least over the past two years to three years. This first half, of course, I do see a INR60 crore odd positive cash flow from operations. Any reason behind the negative cash flow? Of course, there’s the build up of the trade receivables. But going forward can we expect, let’s say, an improvement on the cash flow front specifically, I mean on the cash flow from operation and on the free cash flow front or do you expect let’s say negative cash flows to kind of continue given that you will be continuing to build receivables because of working with larger clients and on larger projects where credit — obviously credit will be much more favorable for the other party, maybe less favorable to us. Some guidance over there will be really helpful.
Salim Yahoo
Yes. So if you look at my cash flows, last time I think the question was asked by one of the investors. We clearly told them this is a temporary phenomena, the negative cash flow last time. If you see in the FY — in the March ’24 results which was around minus — INR57 crores negative. That was basically because we told that on – I mean, even Dr. Faruk Patel has told that in one of the events, that this is because we have taken bigger orders and there was something towards the land, towards the evacuation, everything which was investment made and then there was long payments will come later. So, debtors also increased during that period.
But now if you see in this first half of FY ’25, you see my net cash accruals has also improved, my receivables have gone down and other factors which are — you know, my working capital cycle also has improved. From that point of view, if you see my cash flows have improved. Now we have INR60 crores — approximately INR59 crores as a positive cash flow, which was around INR57 crores in March negative cash flow. So, we clearly told last time also that, that was a temporary phenomena. Now, we will be able to maintain this because that was a shift from a small time customers to a bigger customers and a bigger conglomerate where the order books are bigger. But now we have delved into that and we expect this cash flow to be maintained positive going forward also and improving further.
Drishtant
Okay, and that’s very comforting to hear, sir. If there’s time, I just ask one more question operator if you allow me very quickly. So, sir, I believe this came out today. So, first of all, what’s the idea behind getting a Group CEO and how does that change the workings if you could first give me some idea on that front?
And the related question is actually on the previous question that was asked by one of the participants in terms of the orders given to KP Energy. I mean, sir you obviously understand the importance of corporate governance in the market. And I just want to be sure that we’re definitely keeping everything in terms of corporate governance checks and balances there. And therefore, the margin that even after giving the EPC orders to the other groups will definitely be maintained.
And based on this, another question, sir, on the capital structure and, let’s say, the recent announcement of the bonus issue, what’s the logic exactly there, sir? Because from an economic perspective, it doesn’t really change much, right? So, why this repeated bonus issue? Is it purely to, let’s say, make the share price more accessible to retail investors? Or is there something else that the board is looking at or considering while making these announcements?
Salim Yahoo
Drishtant, your last question includes five to six questions, I think. Nevertheless, as far as order to KP Energy, I think I have already explained that in the previous question, the rationale behind giving the orders. And I assure you that all the compliance will be met and everything will be at arm’s length because there is no cross-holding also between the companies also.
Secondly, moving on to the Group CEO. See, as we grow, we need to bring in more intelligent people. We need to have strength in our teams. So, if you see that even the credentials of the person coming are too good, they have seen the industry, they are part of the industry, they have been one of the — part of the one of the growing wind sector industry. So, see we need to understand that if you look at the KPI’s Board, it’s a very versatile Board. It includes people from — ex-people from GETCO, GEDA, it includes policymaker, it includes somebody like me from ratings, banking. So, all the people are involved in the group. And it’s a — Dr. Faruk Patel always thought that the more the — stronger the team, the stronger will be the performance. And that’s the point behind getting the Group CEO on board.
What are the last questions on the capital structure?
Drishtant
On the bonus received, so, the reason behind that, because economically it doesn’t change much?
Salim Yahoo
It doesn’t change much, but at least, two, three things if you see, KPI being as a company has always thought about the stakeholders, about the shareholders. From that point of view, Dr. Faruk Patel always had the vision that every now and then, we should — that’s why dividend is one of the part and bonus is another part. So, he thinks that they should — our shareholders should always feel that they are being taken care of. And that is the first thought when it comes to bonus or the dividend.
And if you look at we are going expanding, we will require capital, but we always keep in mind that our shareholders should always feel that they are being part of the growth and everything. So, that’s why we have given that bonus and this will continue going forward. So, whenever we grow, we will keep our share of our shareholders in that every now and then.
Drishtant
Understood. Thank you so much. And all the best for the coming quarters. Thanks a lot.
Salim Yahoo
Thank you. Thank you. Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from Gaurav Sharma from Anujay Properties. Please go ahead.
Gaurav Sharma
Hi. Congratulations on an excellent set of results. I wanted to know, since our growth…
Salim Yahoo
Thank you, Gaurav.
Gaurav Sharma
Hi. Thank you. Since our growth rate is higher than our ROE, do you think we will have to further dilute equity and take on more debt to fund the current order book?
Salim Yahoo
Gaurav, at present, looking at the orders we have, we already have the equity combination that we require for the growth.
Gaurav Sharma
Yes.
Salim Yahoo
Okay. So, at least I think this year and the part of next year also, we will not be requiring any dilution or anything which needs to be taken because we already have everything in pipeline. So, post that after two years, maybe looking at the growth parameters and what all things and the potential in the market, we will take a call at that time.
Gaurav Sharma
Okay, makes sense. And I have one more question. What do you think is the tentative date of completion of our current order book, which comes to 2.41 gigawatt?
Salim Yahoo
So, as I told you, the CPP segment we expect to close by September ’25. And the IPP segment, we have just signed the PPA. So, two years from now, so FY ’26 will be the entire completion. It will be done in phase-wise. But the entire — final completion of the entire IPP order would happen by FY ’26.
Gaurav Sharma
Okay, makes sense. I have just one more question. The current President, the United States President, he doesn’t support renewable energy at all. So, do you think that will impact our company in a way the revenue or the raw materials which we purchase?
Salim Yahoo
Yes. I am getting this question multiple times. But we need to understand, we are not a manufacturer of panel, we are not manufacturer of any panel, so majority of the players who might get affected according to my opinion and don’t quote me because that’s my opinion that people who are exporting will be the one who will get affected. We are a domestic player, we are developers, we are developing within India and we have strong order book. And vision in India is already — has a good momentum. [Speech Overlap] Yes. Our current Prime Minister Honorable Mr. Narendra Modi had already given go ahead for all the whatever schemes that there are available and new schemes are coming, and all are subjected towards the Green Energy. So, from that point of view, I don’t think our company is anyway going to impact that. But yes, the panel manufacturer and I would say that if there is a price war in the panel manufacturers, we will be the one who will be benefiting.
Gaurav Sharma
Benefiting. Okay. Next one small question. Faruk, sir, had mentioned in an interview with NDTV Profit that the company plans to add 2,000 acres of land bank. So, how do we plan to fund this acquisition of land bank? And is this acquisition for our current order book or our future order book?
Salim Yahoo
This is for both, for current and then we will be acquiring 1,000-acre land bank. See, land acquisition is a continuous process in KP because we have order book so we have — and this exercise we keep on having evidence and because you won’t get the entire 1,000-acre in one go at one location or anything. So, we have to keep on acquiring nearby locations and everything. So, that process is [Technical Issues] and that is something from the day 1 KPI started is always focused on two important parameters in the renewable energy which creates an order, one is land, another is evacuation. So, if you look at we have 1.8 kind of the order of evacuation also available with us.
Gaurav Sharma
Okay. One last question, who do you think is your closest competitor in this space? Any listed player?
Salim Yahoo
See if I look at any listed player, I won’t have any apple-to-apple comparison, but there are players. I mean, if you look at, you have ACME Solar, who might be getting listed. We have Waaree. Again, I mean, Waaree is also into manufacturing. So, Adani Green is one, which we can — and Sterling Wilson, but Sterling Wilson is only in solar. They don’t have capabilities of wind. So, there are players who are partially, you can compete, but there is some uniqueness in our model, which is not available at present with any of the players who has similar model.
Gaurav Sharma
Okay. That’s all for my end. Thank you so much. Good luck.
Salim Yahoo
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from CA Amit Kumar, who’s an investor. Please go ahead.
CA Amit Kumar
Thank you for the opportunity, sir. So, I can see there is an order book of 2.41 gigawatts. So, you told that it is INR3 crore per megawatt. So, if I convert, can we — can I say that the order book is of approximately INR7,200 crores? Is my understanding correct or please correct me?
Salim Yahoo
No, no, no. You need to understand again, our business model is IPP and CPP. IPP is where I set up the entire plant. I invest, I infuse my capital, I set up the plant and I sell the power. So, there is no direct correlation in the IPP to the revenue from execution. It is only post execution whenever I generate the power, I sell that power. And the remaining other as I told you earlier also in the question, that is on the CPP side where we have combination of order book of where we have some portion which is without material only execution, some portion with material and with execution. So, that is what in the earlier question also I explained that. Yes.
CA Amit Kumar
So, how do I convert this 2.41 gigawatt into rupee terms, if you could help me out?
Salim Yahoo
In that, if you see 1.2 gigawatt to 1.3 gigawatt is something which is IPP. Okay. So, IPP you cannot convert into rupee terms because it is 1.2 gigawatt. If I want to convert into rupee term, it is how much 1.2 gigawatt will generate power and what rate that power that is what should be looked at, right. So, now coming to the remaining portion, what we say 1.2 gigawatt or 1.3 gigawatt of CPP. In CPP, you can say we have already discussed that is around INR2,500 crores to INR3,000 crores of order book.
CA Amit Kumar
Okay. So I am new to the company. So could you please explain the difference between IPP and CPP?
Salim Yahoo
See IPP, we call it as an Independent Power Producer. IPP is a segment where I invest the entire capital for setting up the power plant. I sign PPAs with utility skills like DISCOM GUVNL or with C&I customers. And once I set up the plant, I — those PPAs are 22 years to 25 years. I sell power, so monthly revenue I get from the sale of power to those entities. So, it is a PPA that is given 25 years. CPP is where a customer who wants to use for a captive consumption, I will set up the plant for him. So, I will sell the plant to him. So, I get one time revenue from the sale of the plant and I will maintain the plant for next 25 years. So, I get O&M revenue from the plant for next 25 years and also get a lease revenue because the plant is on my land. So, these two revenues. So, these are the two basic model of IPP and the CPP.
CA Amit Kumar
Okay. Thank you, sir. Thank you.
Salim Yahoo
Yes, thank you.
Operator
Thank you. The next question comes from Pavan from Fident. Please go ahead.
Pavan Kumar
Sir, thank you for the opportunity. Just wanted to understand, like so far the execution has been about like 65 megawatts maximum in Q4 FY ’24. And if you look at the — not execution, commissioning, if you look at the last two quarters, this has been like 28 megawatts and 34 megawatts between the IPP and CPP. But looking forward, we are saying that we will execute almost 1.15 gigawatts within next 12 months, commission. So, what has been the challenge in the past? What will enable you to ramp up so quickly in the next 12 months? That’s question number one.
And coming to the question number two, in terms of the revenues, when I look at the IPP, IPP entire cost is capitalized, right? So, the cost of goods sold, the materials that pertains only to the CPP projects [Phonetic]. That’s my understanding.
Salim Yahoo
Right. See, your first question is that till date we have not done — we have done hardly 30 megawatts, 40 megawatts and that’s what you are saying. See, you need to understand our revenue booking is done on milestone basis and the energized capacity that we count is only when we complete the entire project. So, that’s what happened, that I might have completed 60% to 70% of the project or 80% of the project and in that particular project I have not captured the megawatt that I have done. Why? Because the entire is not energized enough. So, that is the reason that you see that — you might see that we have done INR700 crores but hardly any megawatts which are energized. But if maybe in the next quarter and the quarter after that, you will find that the top line will be around same but the megawatt will increase because what we have done partial will also get energized. So, that is the characteristic of business.
Your second question was of the cost of the goods sold. So, I didn’t get the question here, because naturally what we do is…
Pavan Kumar
Does the cost of goods sold entirely pertain to CPP projects?
Salim Yahoo
Yes, yes, yes, it is entirely pertain to CPP projects. With any capex that I do, it gets capitalized.
Pavan Kumar
Yes. So then coming to the IPP revenue, so we are at like a per unit revenue of INR7.38 in Q1 and INR8.13 in Q2. So, going forward, but GUVNL order, I am assuming lately the solar part would be around like INR2.5 or INR2.6, right. So, how far we’re looking at the IPP revenues per unit revenues in the going forward and what will be the efficiency at the project level, not at a module level, module probably would be at a ’22, ’23 level at the maximum. So, but at a project level or at the company level, what would be the CES [Phonetic] and what would be the per unit realizations?
Salim Yahoo
So, for example, if you tell me, if you speak about the existing IPP plants which are running, these are done under the old policy and these are C&I customers where we are getting revenue of around INR6 to INR7 per unit, okay, or per green electron what we call it. GUVNL PPA that we have signed, they are already on the public domain you can see. On an average, what I will be getting is INR3 per unit, okay.
Pavan Kumar
That is solar plus wind hybrid put together?
Salim Yahoo
Solar plus — wind I have got a higher rate, INR3.25 to INR3.30; and solar I might get INR2.80 to INR2.70 [Phonetic]. So, if I combine together on an average I will get INR3 per unit.
Pavan Kumar
Yes. So, net realization on a FY ’25 basis or FY ’26 basis, what would be the number approximately per unit based on your estimates?
Salim Yahoo
See, net realization going forward would be around INR4 to INR5 because my IPP in GUVNL is a bigger scale. So, what we have done in IPP in C&I customers at present, we have 177 megawatts to 180 megawatts. And GUVNL is approximately will be adding 1 gigawatt more. So, automatically, you will see that the average, it will come to around between INR4 to INR5.
Pavan Kumar
Sir, and in terms of execution, are there any challenges that you’re seeing in terms of grid evacuation or like in terms of transformer availability? Or you will see — there are no risks, and then you’re very confident that you will be able to commission the 1.15 gigawatt in the next one year?
Salim Yahoo
Yes. I told you, no. So, we are a seasoned player. We have a decade experience. And that’s why the key hurdles in any project, we cater to them immediately, or we have them in hand. One is the evaporation, and second is the land bank. So, these two, if they’re in control, the rest of the thing can be managed, because it then is the execution capability, which we already have. So, looking at the current position, we already have evacuation, we already have land bank. So, we are comfortable to execute this within the time and before the time line also, which we have done in the past also.
Pavan Kumar
Got it, sir. Thank you so much.
Salim Yahoo
Thanks.
Operator
Thank you. The next question comes from Mayank Manikya [Phonetic], who’s an Individual Investor. Please go ahead.
Mayank Manikya
Good evening, sir. I have two questions.
Salim Yahoo
Good evening.
Mayank Manikya
The first one is regarding the operating profit margin. So, recently in recent quarters, we have done around 37% or 38% the OPM, but before that, we were at around 31% to 32%. So, going forward, how will this margin be maintained? How should I look at this margin? Will it be — is it sustainable? Will it reduce or can you please…
Salim Yahoo
No, Mayank, in previous — to one of the questions, I already explained that the operating margin, we do billing on a milestone basis. In the first — if you look at, in thee first half last year also if you compare it with [Technical Issues] the first half we have a higher operating margin because lot of billing which is done, there is lesser you can say the cost of goods sold, so the raw material requirement or whatever it is. So, from that point of view, we will have a higher operating margin, but we will be able to maintain what was earlier also, or you can say the full year FY ’24, what was the margin, this will be in the range of 32% to 33% only…
Mayank Manikya
It’s 33%, so we will be able to maintain that?
Salim Yahoo
We will be able to maintain that.
Mayank Manikya
Yes. Thank you. The next question is regarding the orders that we had given to KP Energy. I just wanted to reconfirm that will subcontracting these orders to KPI — KP Energy, will be able to maintain the same margin that in the case if we had executed it ourselves?
Salim Yahoo
We need to understand that the order that I am giving to KP Energy is IPP order. [Technical Issues] which I have to give outside for wind and everything. And who else is better for me than my group company KP Energy who has a decade experience and had set up more than 500, 600 windmill all across Gujarat. So, from that point of view, the order has been given and as far as KP Energy is concerned, yes, I mean we are doing at arm’s length, so what margin I am going to give outside the similar margin will be given to KP Energy. So, for KPI, there is no margin issue because it isn’t capex for KPI. For KP Energy, yes, the margin will be maintained.
Mayank Manikya
Thank you so much, sir. And all the best.
Salim Yahoo
Thank you.
Operator
Thank you. The next question comes from Preet Jain from Jain Securities. Please go ahead.
Preet Jain
Hello. Am I audible?
Salim Yahoo
Yes, yes, Preet. You are audible.
Preet Jain
What will be your future revenue mix from private players and total revenue from government? What will be your total percentage of revenue from government and total percentage of revenue from private players?
Salim Yahoo
See going forward if I complete the entire order book, that in the IPP side if I say, okay. Let’s speak about IPP and CPP separately. So, on the IPP side, you can say that 80-odd-percent would come from the revenue from government, that is a GUVNL project, and 20-odd-percent would come from the revenue from C&I customers, which we already have signed and some of them will get signed. On the CPP side, it would be around, I presume it to be 50-50, because there are bigger players like MAHAGENCO and all where we are doing the CPP project also, tender based and there are also players like Aditya Birla Group or Ayana which we are doing. So, altogether I can say we might have a 50%-50% on the CPP side.
Preet Jain
Okay, okay. And if you are investing in an IPP project, so what do you think in how many years your capital is recovered back — how many years it takes to recover your capital in IPP segment?
Salim Yahoo
Payback period is around seven years to eight years, if you call at the project level in the IPP.
Preet Jain
If we include in that O&M cost also?
Salim Yahoo
See, O&M cost is an ongoing cost. So, it will be there after — till the 25 years of the plant. But it is hardly any cost which you can counter into the overall project cost.
Preet Jain
Okay, you were saying some debt about you will raise for your Khavda project. So, what will be your total debt at the end of the FY ’24-’25 March?
Salim Yahoo
It would be around — less than INR600 crores, around INR400 crores to INR500 crores, not more than that.
Preet Jain
You will raise the INR400 crores for that, but what will be the total debt of the KPI Green Energy?
Salim Yahoo
That’s what I am saying. The INR400 crores to INR500 crores is only in KPI Green for Khavda project, which we are at present executing, which was not…
Preet Jain
Other than that there is no debt on the book currently?
Salim Yahoo
No, there is no long-term debt on the book at present. There is only lease liability which is…
Preet Jain
Okay. Okay. That’s what I want to…
Salim Yahoo
Standalone as a KPI doesn’t have anything.
Preet Jain
And what was your ROE at the end of this quarter?
Salim Yahoo
Sorry, I can’t hear you. What was it?
Preet Jain
What was the ROE, return on equity, at the end of this quarter?
Salim Yahoo
ROE currently was around 28% to 29%.
Preet Jain
Okay. So, when this IPP project will be completed, do you think that these ROE can go up more?
Salim Yahoo
By the way, the IPP project will bring in more profitability. If the profitability increase, automatically the ROE will increase.
Preet Jain
Okay. So when this GUVNL project will be completed, any timeline?
Salim Yahoo
See, it is — as I told earlier also, it will be in phase wise. So, it will be by FY ’26 end, or by FY ’26-’27, it will get — because that is the timeline that we have for the execution. So, it will get over by — before.
Preet Jain
I had one last question also. You had got some order from IPP, order from I think Maharashtra government also. Is that correct?
Salim Yahoo
That is a CPP order. MAHAGENCO, we have got an order for setting up a plant for them in Maharashtra which we have already started working on. So, that is a CPP order. So, we are not investing, we are not selling power. We are just setting up the plant and we are telling that investment is done by MAHAGENCO for that setting up of it.
Preet Jain
And you are doing some marketing also. I saw some of your marketing in some mall. So, you are in retail also or you are only in ground-mounted solar only?
Salim Yahoo
No, no, we are not into retail rooftop or anything. We are ground-mounted only.
Preet Jain
Because I saw your marketing of — if you want to adapt solar so you can contact us any marketing at some mall of your advertisement.
Salim Yahoo
We also do CPP for smaller customers also. So those CPP we do for smaller customers. So, for example, 2-megawatt, 3-megawatt, but that is ground-mounted and that is done for MSME customers who wants to set up their own plant for captive consumption. So, that is also a part…
Preet Jain
And we require land also, right?
Salim Yahoo
We already have land bank. So, we sublease that our land, what we have taken on lease to the customers for 25 years.
Preet Jain
Okay, okay. Thank you so much.
Salim Yahoo
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from Nishant Sharma from Savitri. Please go ahead.
Nishant Sharma
Hello, sir. Good evening. Hello? Hello?
Operator
Yes, Nishant, go ahead.
Nishant Sharma
Sir, I have one question. Hello?
Salim Yahoo
Nishant, your voice is not clear.
Nishant Sharma
I have one question. Your target is 1 gigawatt by 2025. And currently, you have done 507 megawatts. So, can I believe that you will do 500 megawatts in the next two quarters?
Salim Yahoo
Nishant, I mean your voice is a little bit muffy. So I can’t get the clarity on your question. Let me repeat what I have heard. That we have done 557 megawatt till date, right? That’s what…
Nishant Sharma
Hello. Sir, your target is 1 gigawatt by 2025 March. And currently you have done 507 megawatt. So can I believe that you will do 500 megawatt in the next two quarters?
Salim Yahoo
Target at the group level which we have already achieved long back. Now we will do it in — we will do it KPI also that much.
Nishant Sharma
Okay. Thank you, sir.
Operator
Thank you. The next question comes from Pawan Kumar from Shade Capital. Please go ahead.
Pawan Kumar
Am I audible, sir?
Salim Yahoo
Yes, Pawan.
Pawan Kumar
Yes. I think most of my questions are answered. Just I missed, like you have mentioned that we have a unique business model, if you really compare with our peers. So, can you again elaborate on that point?
Salim Yahoo
So, Pawan, what — we have two business segments, that is one is IPP and another is CPP. IPP is where I invest my own capital. I set up the plant. And I sign a power purchase agreement, what we call PPA, for 22 years to 25 years with C&I customers, with government also. And in that, I sell the power and I get the revenue from that, which is high EBITDA kind of work. But I have to invest over this. CPP is where any customer who wants to set up their plant, we will set up their plant on our land, we will sell that plant to them, and we will get one-time revenue from the sale of the plant and we will also get revenue on the O&M and the lease. So, these are the basic two models that we have.
Pawan Kumar
Okay. Okay. Got it, sir. And sir, the last one like as you mentioned about IPP prices, I think it is coming down from INR6, INR7 to roughly INR3 or INR4. And you also mentioned that whatever this macro changes are happening, the module prices are likely to come down. Would it be giving us extra room to sign for maybe ongoing or coming PPA at a even more lower prices and maintaining the same I think returns and IRRs at a project level?
Salim Yahoo
Yes, see any point of time reduction in the prices of the panels or on the infrastructure that is required for renewable energy, it is welcome for us because we are a developer. So, our rate that we are right now what we have got in our PPAs are very lucrative. If it further improves it will be — if the costing goes down automatically my IRR increases. So we will surely look into it, but at the same time, as I told you that IPP includes, I mean I have to invest the capital, I have to bring in debt, I have to bring in equity. So, that has to be taken into consideration because we cannot leverage the balance sheet too much. From that point of view, we will take a collective call. Once we complete this order also, or we are in the phase of completing this order, we will again move on to more of an [Indecipherable]. But at present, we have a good order book that we will be executing in next couple of years.
Pawan Kumar
Okay, just a follow up, what sort of typical IRR we really look for when we bid for such projects?
Salim Yahoo
I look at around 15% to 16% minimum, that’s something which we try to look at. But depending upon how the project is, what is the bidding that is happening and all those factors have been taken into account.
Pawan Kumar
Okay. Right, sir. Thank you for all the answers. Thank you.
Salim Yahoo
Thank you.
Operator
Thank you. The next question comes from Akhilesh Kumar from Adpro Technologies. Please go ahead.
Akhilesh Kumar
Yes. My first question is about how we account the revenue from IPP segment. Like, IPP, usually we invest our capital. But depending on the milestones, do we report them as a revenue, part of the revenue and then bottom line as well, or we wait for the entire completion and start generating electricity…
Salim Yahoo
So, it is depending upon the PPA that we — on the IPP side, my revenue recognition depends upon the power that I set. Now I might get a PPA which is at 200 megawatt, for example, 250 megawatt of solar PPA that I have signed. Now if there is a condition that the entire plant has to start and of course that only I can energize, yes, then I have to wait till the entire plant start and the power getting evacuated and at that point my revenue starts.
But if I am doing on a C&I customer and for example I am setting up my plant and I have 1-megawatt, 2-megawatt, 3-megawatt, as and when I set up the plant, I can start giving the power to particular PPAs or anything because there are what we call as a retail kind of a PPA. It might be ranging from 1-megawatt to 10-megawatt to 15-megawatt different PPAs. So, in that case, I can sell it as and when my 1-megawatt also gets completed. But in case of utility scale, if the PPA allows, I will surely, if the PPA doesn’t allow, then we have to go with the condition in the PPA.
Akhilesh Kumar
What you are essentially saying is that for GUVNL project, we might not be showing any revenue right now. We will not be booking them, right?
Salim Yahoo
Yes, at present. See in that case, it’s important for me that the faster I execute the entire plan, the faster we might generate the revenue. So, in that case, partial — what we say, a partial execution will not generate any revenue.
Akhilesh Kumar
Okay. So we might be seeing the real revenue happening maybe next year from GUVNL projects, right? If most of it?
Salim Yahoo
Yes, most of it will be coming after couple of years, I would say, rather than the entire plant generation revenue will come after couple of years.
Akhilesh Kumar
Okay. So whatever, right now we are seeing the revenue quarterly there is a portion of CPP or IPP, those are from C&I customers, right? Let’s say where the milestone…
Salim Yahoo
Yes, at present C&I customers are my existing, which includes L&T, Colourtex, UPL, Meghmani, Tata Motors, Union. Those are the long list of my existing C&I customers. These are strong customers.
Akhilesh Kumar
Got it. And the profits also what we are paying from IPP, that is the actual electricity sold and then realized, right?
Salim Yahoo
Yes. That is monthly billing is done.
Akhilesh Kumar
Okay, excellent. Just one last small question, like we have a plan for as a group that being hydrogen, green hydrogen as well. So, again, sometimes suddenly we see some of our promoters at stake moving here and there and we are acquiring our group company and you have many group companies, I think many unlisted as well. So, do we have any plan of green hydrogen foray from KPI Green or it will be a separate entity?
Salim Yahoo
At present, yes, we have a separate company for the green hydrogen. So, we will be setting up a new plant. The only thing that the support at KPI Green, if it has a green power, green electron that is existing IPP plants where from which green hydrogen is required, we’ll set up a plant in KPI and we will sell the power to green hydrogen that might be our first thought depending on that. But we will not — I mean there is a separate company where we are already moving fast on the green hydrogen. Surely you have some good news about starting a prototype or you know working on that on the green hydrogen.
Akhilesh Kumar
Okay. Thank you. Thanks a lot and I hope you continue the conference calls, because I think long back it was there when…
Salim Yahoo
Yes, we are aware of that. We will mostly start — every quarter we will start the conference call now. That’s our commitment to our shareholders.
Akhilesh Kumar
That helps a lot.
Operator
Thank you. The next question is a follow-up question from Mr. Ashish Rampuria, who’s an Individual Investor. Please go ahead.
Ashish Rampuria
Thank you. Couple of more questions from my side. One, I think what the previous participants asked, I think you clarified that the green hydrogen is another group entity. But what about BESS and so on and so forth? Are you looking at such businesses? And will that be set up in KPI Green or will that be setup in other group company?
Salim Yahoo
Ashish, I didn’t get the question exactly. I mean, green hydrogen, yes, there is a separate company, we are working on it. Other companies that we have…
Ashish Rampuria
Battery energy storage systems and so on, so forth, right?
Salim Yahoo
No. At present, we have not entered or we are not having any intention for entering into battery storage. But surely, we will look at the sector battery, because you know when it comes to RTC, round the clock, it is one of the key ingredients that has to be a part of that. But nevertheless, we are doing hybrid, so which you can say a natural RTC kind of a thing, not totally RTC, but hybrid plants we are already doing. So, we have not taken any call. At present, is at nascent state. We have not entered into batteries. But we have companies, we will be thinking over it depending upon what the Board decides finally after looking the various benefits and the cause and cons.
Ashish Rampuria
But will it happen through this vehicle of KPI Green or will it be another group company? Any thoughts on that?
Salim Yahoo
It will be a — see it will be a separate company at present. That’s what is my understanding. But depending upon how the circumstances are, if we want to get — go at a bigger level, then naturally it will require a support from KPI.
Ashish Rampuria
Got it. Understood. The other question was, I think we’ve mentioned a lot of things about sort of automatic solar tracker sort of improving, the mono-facial internal support, if I remember correctly, a typical CUF, PLF was about 20-odd-percent in a solar system, right? Has it improved to 22%, 23%, 24% number now?
Salim Yahoo
Naturally, see your tracker system always give you a better output. Similarly, your bi-facial we actually are using, giving a better output. So, overall, naturally, we also have a robotic cleaning. There is a waterless robotic cleaning that also helps us. So, overall, we are working on various parameters which will give an efficiency because even a percent increase in the PLF will have a very good positive impact on the revenues. We are aware of that and that’s why we are working on various other things. And at the same time, we also have a NOC room, a network operation center room, which you rarely find in any of the players except for bigger players like Adani or ReNew. So, there is that every plant, every panel is 24/7, is looked after by our team which [Technical Issues] 24/7. So, if there is any delay, if there is any hurdle in the generation or something, that gets corrected immediately. So, we try to see that anything that might impact the revenues, we have a close watch on that.
Ashish Rampuria
[Indecipherable] what I am asking to understand, Salim ji, we have seen the impact, I mean what is the percentage gain now, right? So, typical CUF — the number of CUF is still 19…
Salim Yahoo
If we do tracker and all, there will be a percentage of between 3% to 4%.
Ashish Rampuria
Are we now seeing projects at 23%, 24% CUF?
Salim Yahoo
Yes. Yes, yes, we are seeing that. The new projects that we are setting up, we are seeing that benefits.
Ashish Rampuria
Correct. Okay. Thank you. All the best.
Operator
Thank you. The next question comes from Samrat Shah, an Individual Investor. Please go ahead.
Samrat Shah
Hello. Am I audible?
Salim Yahoo
Yes, Samrat, you are audible.
Samrat Shah
Sorry, my call got lost the last time when I spoke. Firstly, I would like to congratulate Farukbhai Gulambhai Patel for the second best performance. Since the last three years, I have been an investor in this company. And since I didn’t — I was lost in most of the conversations, what I get to note is you are guiding — you have given a guidance of 60% to 70% of revenue growth from year-on-year is what I heard. And I would like to know, you had given two to three notifications about green hydrogen as well as ammonia. And there was one notification last year that you had some agreement with an entity which was outside India. So, geographically I know that you have been present currently in Maharashtra, but out of India what are your plans is what my question is?
Salim Yahoo
We have already given that but as I told you earlier also at international level it is still at a nascent state. If something comes up, we will surely put that notification, but we have done MoUs with the like what we have put on the BSE, NSE notifications. So we are in talks, but these things will take a little time to materialize also at the same time.
Samrat Shah
Okay. Thank you. And my other question is in H1 what was the percentage of IPP versus CPP? And in H2, can we expect the IPP percentage to move up, so that the margins can even further improve because the IPP contributes bottom line is what Farukbhai always says.
Salim Yahoo
See in H1, I can tell you that 13% to 14% was the contribution of IPP and rest all 86% to 87% was CPP. Since we are doing bigger orders in IPP and this will be GUVNL 240 megawatt and all. So, till the full year I don’t think that there will be a drastic change in the mix of the IPP and the CPP. But after that coming years, there will be changes which you will see in the IPP and the CPP.
Samrat Shah
Because in the recent interview in NDTV Profit, he has given a guidance of IPP percentage moving to 30%. So, can we expect this in the next financial year?
Salim Yahoo
See once I complete this 1.2 gigawatt of IPP orders, then the IPP percentage will be — and the revenue will be more than around 30%.
Samrat Shah
Okay. Thank you for giving me the opportunity. And once again congratulations for the great numbers.
Salim Yahoo
Thank you. Thank you. Thank you, Samrat.
Operator
Thank you. The next question comes from Subash from Value Investments. Please go ahead.
Subash
Hi, sir. From what I have heard until now, just let me know if my understanding is correct. So, out of the — I mean, the order which you have given to KP Energy, right, that will be a CPP order for KP Energy. But that’s an IPP project for KPI Green, which is a capex cost to them. And you have already assured that KP Energy would get the same margins what they have been maintaining for the outside clients.
Salim Yahoo
Right, right. That — your understanding is very much correct.
Subash
Okay. Thank you so much. And the next one is, so Farukbhai Patel sir had mentioned in a TV interview saying that, KP Group, I am confused whether he mentioned it as a group or only for the KP Energy or KPI Green, because he said that in the future there is going to be a day when INR1 crore PAT will be shown per day. He said something about annuity income. Could you please throw some more light on it?
Salim Yahoo
Yes. See as I told you earlier, there was one question which was on that you had a vision of 1 gigawatt by FY ’25 which I told you that for the Group level we have already achieved and now we are going to achieve. So, similarly you can say that 365 for the Group level, already PAT is achieved. We are now and Faruk sir when he speaks about, he speaks about Group, but now he’s aiming that every company should try to reach there as fast as possible, but that vision was at the Group level only.
Subash
Oh, he meant that Group level only. Okay. And also like this conference call is very helpful for the individual investors. So, would there be a call for KP Energy also separately in the future or can we ask KP Energy questions also in the same call that you arranged for KPI Green?
Salim Yahoo
No, we will be having separate call for KP Energy also. Nevertheless, I mean, in the interest of time — I would have allowed you, but in the interest of time, we will do it on the KP Energy call also because KP Energy is going on NSE also on the 14th of this month. So, that will also do a call on the KP Energy.
Subash
Also, you said that’s going live on 14th, it’s getting listed on the NSE on 14th?
Salim Yahoo
Yes, it is getting listed on the NSE also on the 14th.
Subash
14th. Okay. Thank you so much. So, if at all Farukbhai sir is on the call, I mean, I have been an early investor of KP Group from many years. I just want to convey my gratitude and thanks to like the unimaginable execution from your Group, because of which all our family members have benefited. All the best for your future.
Salim Yahoo
Yes, I will convey your message to Dr. Faruk Patel. And thanks from Dr. Faruk Patel and from our team to you also.
Subash
Thank you, sir. That’s all I have.
Operator
Thank you. The next question is from the line of Nayan Shah, an Individual Investor. Please go ahead.
Nayan Shah
Hello. Am I audible?
Salim Yahoo
Yes, Nayan, you’re audible.
Nayan Shah
Yes. Hi, sir. Congratulations on a great set of numbers. Sorry if the question is a repeat question because I have joined in late. So current subcontracting order which KPI Green has given to KP Energy. So, is it a part of a bigger contract that KPI Green has received? Or — and secondly what is the value of the contract which is subcontracted to KP Energy and what are the execution timelines?
Salim Yahoo
As I explained a little bit earlier, I will just repeat that thing that the order that KPI is giving to KP Energy, that order is the capex of KPI. So, KPI is setting up a plant for itself where it is doing a capex. It is bringing equity debt and setting up the plant. So, it is not an order which KPI has got and which is transferring. It is the capex of KPI that will be executed by KP Energy. So, for KPI, it is an IPP, that is its own plant and it will be executed by KP Energy, it will be a EPC contract for KP Energy. Now the total order value depends upon lot of factors. So, it’s not conducive right now to tell you the exact order value, but it will be a substantial order value because they will be taking the entire EPC of the hybrid plant and the solar plant also. A component would be — a solar component would be, for example, panel and everything might be purchased by KPI itself also.
Nayan Shah
Okay. Okay. So, any tentative value per megawatt kind of a thing?
Salim Yahoo
It depends upon — see right now the financial closure is in process. So, only after that we will be able to tell you the exact pricing. There are lot of factors depend upon which kind of windmill will be taken, what kind of panels will be taken, what kind of technology, whether it is with tracker, without tracker, which one is more feasible that will be decided and on that basis the costing of the plant is…
Nayan Shah
Understood. Understood. And sir what would be the execution timelines of the entire order?
Salim Yahoo
Within 1.5 years to 2 years, we will have to execute within that.
Nayan Shah
Okay. Sure. Thank you, sir. And all the best.
Salim Yahoo
Thank you, everyone.
Operator
Thank you. The next question comes from Lehar Jain from Giriraj Infocom India Private Limited. Please go ahead.
Lehar Jain
Yes, this is regarding — see, from my understanding what I get is like now we have some financial constraints and we are forced to give orders, subcontract it to other group concerns or even other concerns. So, going down the lane, in future, we might have like — we might not be in a position to bid for IPP orders. And so the company’s profitability might come down. So, how you see three years down the lane — how you foresee our projections for CPP and IPP?
Salim Yahoo
Lehar, I think it is not correct to say that we don’t have any financial constraints, because it’s a capex. I have already brought in equity, and there will be a portion of a debt, which will be infused. We are already in talks with lot of bigger players. So, there is no financial constraint for this order. We are giving it to our group company so that our timeline and everything get executed and they have expertise in the hybrid, and we have hybrid orders also in this. So, that is the reason for giving the order to KP Energy.
Now why we are not taking the IPP more projects or tender at present because at present our hands are full with this order. Once we complete this order, because we also have to see how much leverage we can take on the balance sheet and the P&L. We don’t want the balance sheet to be too leverage. As I told earlier also, we want to keep debt equity minimal of 2:1, not beyond that. So, from that point of view, we will take a cautious call depending upon the future outlook, after that — after 1 years or 1.5 years, which are the orders which we will be bidding out.
Lehar Jain
Okay. But we see that the bulk orders which come say from NTPC or the likes of that companies these are all mostly on IPP basis. So, the opportunity, probably the peak opportunity might be lost?
Salim Yahoo
No, no, no. See, there is — as I told you there is an immense potential in the market. At present, I have — KP Energy also has NTPC order for CPP. So, IPP will not be given by players who are there in the renewable market, it can be given by utility scale DISCOMs like GUVNL or it can be given by the other C&I customers, IPP orders. Whereas, CPP is concerned naturally, Aditya Birla Renewables is one of our customers. We have Ayana Power is one of us. So, CPP order mostly comes from players who are there into the renewables sector, and they want to offer some of their orders. So, that is what usually we have done.
Lehar Jain
Okay, fine. Thank you.
Salim Yahoo
Thank you.
Operator
Thank you. The next follow-up question comes from Pavan from Fident. Please go ahead.
Pavan Kumar
Sir, earlier we mentioned, you know the project bookings should be in the timeline, not on milestone basis. Can you give some kind of guidance on whatever milestones and then what would be the revenue looking at various milestones? That’s one question.
Operator
Pavan, your voice is cracking. Pavan, your voice is cracking. Can you repeat the question slowly?
Pavan Kumar
Yes. So I was saying can you give the various milestones and what would be the revenue booking at various milestones? That is one question. And on the GUVNL project, you mentioned that you will be allowed to sell units on the PPA only post the energizing the entire project. But in the interim, are you allowed to sell any units on the merchant basis if whatever commences? Yes. Those are my questions. Thank you.
Salim Yahoo
See I’ll will take the second question first, that GUVNL project, until and unless I energize, and when the entire plant gets commissioned, only after that the energize, I can — if the PPA allows me, then I can do a part sale. Whereas the milestones are concerned, milestone as I told you, we are planning to complete this entire 1.2 gigawatt within next 1 years to 1.5 years. So, milestone will be depending on the IPP side. CPP as I told you, by September 25, we will have to, whatever order book we have 1.1 gigawatt or something on the CPP side will surely close that by September 20th.
Pavan Kumar
Sure. Thank you so much.
Operator
Thank you. The next follow-up question comes from Akhilesh Kumar from Adpro Technologies. Please go ahead.
Salim Yahoo
Is this the last question?
Operator
Yes, sir, this is the last question.
Akhilesh Kumar
This is just a quick one. Wanted you to know about one subsidiary we have absorbed from our promoter sometime back. How is the progress there? Like that subsidiary has been contributing anything as of now?
Salim Yahoo
Yes. So that subsidiary was taken with an intention because that subsidiary has an evacuation approval more than 100 megawatt, it had a land bank also. So, that subsidiary was taken with an intention to set up a plant. So, we have already started, we have set up a small plant of 10 megawatt and we are already setting up few more plants over there in that subsidiary. So, the progress is already there. In fact it has evacuation and land so it is easy for us to set up the plant faster.
Akhilesh Kumar
Thank you. That land was owned by them?
Salim Yahoo
Sorry?
Akhilesh Kumar
That land was owned by them or it was a lease again like how we…
Salim Yahoo
It was in the books of KPark Sunbeat.
Akhilesh Kumar
Okay, fine. Thanks a lot. That’s fine.
Operator
Thank you. Ladies and gentlemen, as there are no…
Salim Yahoo
Can I give a closing statement?
Operator
Yes, sir. Please go ahead.
Salim Yahoo
Since there are no more questions, we will conclude this entire call. I will just, in conclusion, I’d like to thank all our stakeholders, partners and employees for their unwavering support and dedication, which has been instrumental in our success. We remain confident in our growth strategy and are well positioned to capitalize on the growing demand of our renewable energy. We will close this session with this, and it was a very good session. I thank everybody. I thank Sagar and the team for supporting us. Anything else, Sagar, you would like to add?
Operator
No, sir, that would be it.
Salim Yahoo
Thank you, everyone. We will be closing the call now.
Operator
[Operator Closing Remarks]