KPI Green Energy Ltd (NSE: KPIGREEN) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Siddharth Thakur — Executive Assistant to Managing Director
Alok Das — Group Chief Executive Officer
Salim Suleman Yahoo — Chief Financial Officer
Analysts:
Harsh Patel — Analyst
Garvit Goyal — Analyst
Unidentified Participant
Aman Soni — Analyst
Hardik Gandhi — Analyst
Sudhir Bheda — Analyst
Govinda Alagi — Analyst
Agastya Dave — Analyst
Parin Gala — Analyst
Krishna Kumar — Analyst
Pawan Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to KPI Green Energy Limited Q3 and FY25 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. Should you need assistance during. The conference call, please signal an operator by pressing star then zero on touchdown phone. Please note that this conference is then recorded. I know. Handicapped. Over to Mr. Hatel from Share India Company. Thank you. And over to you sir.
Harsh Patel — Analyst
Thank you and good morning everyone. Congratulations on good set of numbers. On behalf of Share India Security, I welcome you all to Q3FY25 earnings conference call of KPI Energy.We are pleased to have with us the management team represented by Mr. Alok Dar, Group CEO and Mr. Salim Yahoo Chief Financial Officer of the company. We will have the opening remarks from the management followed by the question and answer session.
Thank you. And over to you sir.
Siddharth Thakur — Executive Assistant to Managing Director
All right, first of all, a very warm welcome to our investor con call for KPI Green Energy. I am Siddharth Harcourt, CMD Office and I’m delighted to have you all join us today. Over the last 10 years KPI has been at the forefront of India’s renewable energy transition. Evolving into one of the country’s leading integrated players in the sector. With a strong focus on solar and hybrid energy projects, we continue to expand our footprint domestically.
As of today, if you look at our overall group level, we have a robust portfolio of 5.2 plus gigawatts with 1.4 gigawatt already commissioned and a strong 3.8 plus gigawatt order book. Our expertise sends end to end EP services, O& M capabilities and the Esco model, ensuring that we deliver reliable, sustainable and scalable renewable solutions. With a solid execution track record, a robust project pipeline and a growing presence in India’s renewable energy landscape, we remain committed to accelerating the clean green energy transition, scaling capacity and strengthening partnerships and delivering long time value for our stakeholders.
Today’s discussion will focus on our recent performance, ongoing projects, strategic initiatives and growth outlooks. To take us through the updates in detail, I’m also pleased to announce Dr. Alok Das who is our Group CEO. Dr. Alok Dance brings extensive leadership and experience in the renewable energy sector, business strategy and project execution. Seasoned leader with over 30 years of experience in the renewable energy sector. He brings exceptional tackle to this time in industry from giants like Energy, reliance Energy and NEPC. And as chief elements of IIT Danpur who has earned his PhD in renewable energy.
I will now hand over the podium to Dr. Alok Das.
Alok Das — Group Chief Executive Officer
Hi, good morning dear investor. I’m glad to be here in front of you. You know basically I want to give because there was team here, I want to give the preview where KPI Green today basically now the future is green. Probably you all know that the country is moving towards the net zero. And our Prime Minister has given a set target 500 gigawatt by 2030 and net zero by 20 3. As on Today there are 5, 205 gigawatt has been installed and there’s a solid grab of over 300 gigawatt. That means every year countries should witness about the valuation of 59 to 60 gigawatt that consists of solar, wind, hybrid, other things. So looking into the trajectory and year on year connection for. So we are KPI Green in a better position because any project required three things. Number one resource creation and number two project execution and supply. And we are here in a position for all kind of resource creation and project execution. You know that what Siddharth told just now 4.2 gigawatt under you know the pipeline and there are at the group level we have a target about 10 gigawatt participation up to203.0. So that means our future path is very clear for the stakeholders. What we want today and latest by whatever the present budget declared. There are also you know three positive things and happening. Number one there is a manufacturing facilities to PLI scheme under make in India initiatives. Number two, there is export possibility. Number three, green, you know corridor creation, what is infrastructure development lack and transmission line other thing. And we are all there to create every kind of support on behalf of KPI Grid. In a nutshell today we are doing solar, we are doing wind, we are doing you know this hybridization. And also in futuristic we are also adding some more vertical. So in the time to time we’ll let you know that what kind of heavier green is venturing into. So with this trajectory we are all positive and in a nutshell the future is very much great with this. So let us start our discussion today and for all kind of deliberation with you and we can give you all of your queries. Thank you very much.
Siddharth Thakur — Executive Assistant to Managing Director
Now I’ll hand over the call to Mr. Salim Yao, CFO at KPI Green Energy.
Salim Suleman Yahoo — Chief Financial Officer
Thank you Sidha. Thank you doctor. Good morning everyone. Thank you for joining us today for KPI Green Energy limited Investors con call. I am Salim Yahoo. The chief financial officer of KPI Green Energy limited And it is my pleasure to present the financial performance and key highlights of our company for the quarter ended and for the nine month ended 12-31-2024.
We are proud to report another outstanding quarter marking record breaking result as we continue to achieve our highest ever turnover for the third consecutive quarter. This consistent growth underscores our strong market positioning, strategic execution and operational efficiency. Over the past quarters we have delivered strong results with total revenue of 466point. Super 40.6% increase compared to the same quarter last year our EBITDA for quarter three reached 144.54 crores reflecting a 38% year on year growth while our profit before tax surged 114.94 crore marking an increase of over 60%. Most impressively, our profit after tax climbed 85.15 crores up by 68.26% compared to the previous year quarter. These figures underscore the effectiveness of our operational execution and strategic financial plan, expanding our focuses to the nine month performance we have truly set a new benchmark. Our total revenue for the nine month period has reached 1177.35 crores representing a 59.5% increase over the 737 crore in the corresponding period of the previous fiscal year. And let me highlight that what we have done in the previous physical year, the entire full year, we have surpassed that also. This robust performance is further highlighted by our EBITDA which grew 411.44 crore, an impressive increase of 66% increase that already surpassed the full year EBITDA gain for FY23 24. Our profit before tax for the nine months stood at 302.2 crores, a significant 93% increase from the last year while our profit after tax reached 221.1 crore reflecting reflecting an 86 point previous period. So in short we have surpassed all our previous financial year figures in all the parameters whether it is top line or the profitability. In quarter three alone we have secured major contracts with Coal India Limited for a 300 megawatt AC ground mounted solar PV project reaffirming our leadership in large renewable energy projects. As you are aware that we have entered Maharashtra to the biggest margin go project which we have taken. So we have also started our exhibition in Maharashtra with 100 megawatt AC solar project and further we have expanded our renewable portfolio through strategic MOUs with the government of Rajasthan and Odisha. Notably our flagship project 240 megawatt DC solar project at Khawda in Gujarat is progressing ahead of schedule which is a trademark that we always try to close our project before the schedule that is given to us. This shows our integrated advanced technologies and contributing to the local employment that we always keep in our mind. On the operational side, as of 01-15-2025 installed capacity has grown to over 533 megawatts supported by a strong order book of 200869 megawatt that is 2.86 gigawatt with a power evacuation capacity of 2.59 gigawatt and a land bank exceeding 4180 acres, we are well positioned to capitalize our future opportunities and drive our expansion in the renewable energy space. Our performance in both quarter three and nine month period reflect our commitment to excellence and our strategic focus. On sustainable growth, we continue to build on our strong foundation by optimizing our operations, expanding our project portfolio and entering new markets. All while delivering increasing value to our investors. With this, I thank you all for your continued trust and support and now open the platform for question and answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on the touchdown telephone. If you wish to remove yourself from question Q, you may press star and 2. Participants are requested to use hands up while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assignments. The first question is from the line of Garvit Goyal from Envist Analytics. Please go ahead.
Garvit Goyal
Hello. Am I audible? Good morning sir. Congrats for a decent set of numbers. I have three questions. One is on our IPP segment. In this segment I was looking at your PPT and what I found is both installed capacity and OIH number for this particular segment are similar to last quarter. So is there any specific reason for it? And if yes can you please help us to understand like why are we facing any challenges in this particular segment?
Salim Suleman Yahoo
So if I correctly understood your question, you are saying the installed capacity in the last quarter and this quarter were the same, right?
Garvit Goyal
And order in hand also for IPP segment.
Salim Suleman Yahoo
So IPP segment. The IPP segment we have already taken, you need to understand in IPP we have to invest our own capital and set up the plant and sell the power. So that is our IPP segment. So in IPP segment we already have sufficient order book on the IPV side and for which we have tied up with the bankers and financial institution for the debt capital which is required now we cannot, we have lot of inquiries where we want to do ipp. But we have to keep in mind our leverage and we have to keep in mind our being capacity.
All those our rating and everything are doing so that’s the reason we we have enough book right now for ipp. Once we see that you know this book start getting executed and completed to a certain limit then we will start adding more and more IP. That’s why IPP we have taken approximately 1.3k award from G2NL itself so that we will start working on that where we have already started working on the first 50 megawatt then 370. So once we start moving progress in that then we will add up more ipp.
Garvit Goyal
So we are not facing any challenges in execution, right?
Salim Suleman Yahoo
Not at all. Not at all. In fact we are welcomed by the institutions and by the customers. Also to add more and more.
Garvit Goyal
Understood. And second thing is just a clarification on this year guidance like in last conquel you mentioned. Mentioned 60 to 70% at least revenue growth for this particular year. But in recent interview has given a number of 50 to 60%. So what is the right number for this year sir? And he is going ahead.
Salim Suleman Yahoo
Yeah, So I said 60 to 70 in the last and Paruk said 50 to 60. So both have 60 common. You can take 60 as a common factor.
Garvit Goyal
Okay, so and third, third, thirdly on like looking at the geopolitical tensions and we all know that we are having our old plants in India and customer base is also based out of India. So we are having no connection as far as revenue is concerned with rest of the world. But looking at the supply chain issues like in things like are we facing any any issues related to supply chain that may impact our margins going ahead or a shortage of the components that we use in our project execut like that.
Salim Suleman Yahoo
We do a well planning before even taking the orders for the CPP side. And on the IPP side if there is an increase in the model cost or anything the tender is give sufficient space for increase in the, you know what we say the rate also equivalent. That is also mentioned. So I don’t think we will face any problems on the supply chain side. Also as far as the, you know, execution is concerned, we are well geared up for executing those and supply chain we take care of that, we do a proper planning for that. So I don’t think neither the price will impact us, neither the availability will impact us.
Garvit Goyal
And so this quarter our margins shouldn’t be Q1Q basis. So what is the specific reason for it and what is the guidance for rest of the year and years coming ahead?
Salim Suleman Yahoo
Right. If you see the EBITDA margin has you know, gone a little bit lower compared to the previous quarter. The reason is that if you see trend in the previous quarter, that’s when the seasonal, the rainy season is there. So in this quarter a lot of our billing is on the service side which is. Which includes less of material and some components like license, you know, land collection and all those things are done. So we do a lot of billing on that that side. So in that thing the margins are a little bit higher because there is no what we say material component in that that much. So that’s why it is and automatically this this quarter we have done lot of material purchase.
So again you will find a little bit shrinking that. So it’s a season. It is not something that the margins have gone down. It is just that you see the trend of last year also you will find similar if you see last year we had around 33 to 30, 34% in the second quarter and third quarter against 30, 31 against something like that. So it will be a small dip because of the way the billing is happening. It’s a milestone billing that.
Garvit Goyal
Understood, sir. That it from my side, sir. All the best for the future. Thank you.
Salim Suleman Yahoo
Thank you. Thank you.
Operator
Thank you. The next question is from the last. Line of Rasheed from Pins Wealth. Please go ahead.
Unidentified Participant
Hello.
Salim Suleman Yahoo
Hi Rasheed. Good morning.
Unidentified Participant
Hi sir. Good morning. Congratulations for the great numbers.
Salim Suleman Yahoo
Thank you.
Unidentified Participant
So my first question is that what is a portfolio PLF as on 31st December in IPP sector. Yeah. Plant load sector.
Salim Suleman Yahoo
Yeah, yeah. I’ll tell you. See in IPP we have two kinds of plants. One is fixed in the solar side and another is tracker based. Okay. Because when we started long back at that time fixed was something which was in things. So we have done. So some portfolio is fixed on the fixed. We have around 18 to 18% of PLF on an average on and the tracker base you’ll find we have at least 23 to 24% kind of depending upon the locations, everything. And as far as the wind portfolio we have hybrid. Also the wind itself will give you 34 to 35% of PLF the wind component.
Unidentified Participant
And so what is this tracker base like? Can you explain this?
Salim Suleman Yahoo
So there are two types of, you know what we said solar plant. One is fixed that you know, it has a tilt which is fixed. The panel doesn’t move. And one is tracker based. It is run by a motor which tracks the sun and always remains perpendicular to the sun. So the generation is higher because the panels are always perpendicular to direct in parallel to the sun. So it gives a better quality. So it keeps on moving. It’s a moving and it’s a non moving. You can say in a simple language.
Unidentified Participant
And so then then currently after 171 megawatt which we have solar installation capacity. So can you like tell can how much will be tracker based and how much will be the fix?
Salim Suleman Yahoo
I think you can say.
Unidentified Participant
In terms of. Yeah, installation.
Salim Suleman Yahoo
Yeah. At present is 75. 25.
Unidentified Participant
75 is fixed and 25 is tracker based.
Salim Suleman Yahoo
75 fixed and 25 would be the.
Unidentified Participant
Okay. And so like last year we generated. Let’s say last, last year we generated 21.3 crore units K. So what will be their PLF? What will be the PLF of that? That because since this year we must have added so on an average up, you know PLF might have come down portfolio PLF because we added some. So if we, if I see the sorry.
Salim Suleman Yahoo
Find the exact field it is difficult to arrive at an exact PLF of all this 21,000 crore unit. The reason is that we have different plants. We have a hybrid plant, we have tracker plant, we have fixed plan. So all will have a different different plf.
Unidentified Participant
Okay.
Salim Suleman Yahoo
Now you have to calculate the weighted average and everything. It will not be give you a, you know, picture which you can decide on anything. But believe me, all the three plants are giving one of the best PLF that we have.
Unidentified Participant
Okay. And so what will be our unit realized? What will be a realization in IPP blended as on today?
Salim Suleman Yahoo
See, as on today I have approximately 6 rupees plus kind of a realization that is at the gross level gross.
Unidentified Participant
And net level sir.
Salim Suleman Yahoo
So sorry, I’m saying that is at a net level 6 and gross will be go around 7 for something. Sometimes it goes up to 8 there also you know you have different, different factors. So if it is not utilized then we get ABBC rate also and we also get the customers minimum utilization rate. So it’s a different, you know, calculation that has to be done.
Unidentified Participant
And so going forward like since you know a lot of capacity is coming under IPP also. So going forward do we believe that that realization will be the same or we’ll see some depend realization.
Salim Suleman Yahoo
See going forward what we have we are setting up the IPP is now for GVNL where the rate are fixed. So on an average I get 3 rupees plus kind of a. 3 rupees kind of a rate for the junior project. And the junior projects are bigger. So if I look at the entire portfolio which I am getting six rupees on today for my existing portfolio, if I combine both of them I would reach at around 4 or 4.5 because then the 3 rupees also will play. But believe me my IRR won’t reduce because the plant that we are setting now are at a lower cost compared to one which we have said earlier. So automatically my IRR is better and the earlier plans all are debt free.
Unidentified Participant
Okay. And so this 3 rupees per unit will be like that. We don’t have to pay any transmission charges, nothing. It will be like pure net. So government will bear it like transmission loss and all right?
Salim Suleman Yahoo
Yes, it will be pure net. And it is signed with unl, one of the best paymaster. So all payments will come mostly in advance also.
Unidentified Participant
And so like second question is that you know recently we have been seeing there is an anti provisional duty on glass. So do we see that going forward that solar module price will rise and that might impact in our EPC contract as well as in ipp.
Salim Suleman Yahoo
See in the IPP as I just highlighted on one of the question earlier also that in the tender itself there is a clause which allows you to increase the price of the rate depending upon the change in the prices of the model. So through that the rate will automatically. So I am not going to get hit by the change in the model prices because ultimately the glass price will increase the model price. So that is that there we are safeguarded on the IPP side.
On the CPP side we always, you know, do back to back tie up with the model manufacturer whenever we book an order and everything. So that is that also mitigates to some extent, my risk on the CPP side also.
Unidentified Participant
And so just last question is that, you know, we are looking to different geographies now, Odisha and, you know, and Rajasthan. So, like, since Gujarat, you know, we had a like, good hold, like, you know, in terms of land acquisitions, in terms of finding lands and, you know, setting up the plant. So, like, like going now out of geography, like going to other geographies, you know, where we’ll be, like, starting from scratch. So do you see like, like, what are the what view that do we find any related challenges, you know, to set up the plan or to do any CPP product? Like, you know, what we have been able to do well, in Gujarat.
Salim Suleman Yahoo
Yeah. So as I told you that in Maharashtra we have already started execution. Okay. So Maharashtra, we have already acquired land majority. The land has been acquired. See, over a period of time we have learned all the expertise. We have all the expertise now with respect to the acquisition of land, with respect to the row. I understand there will also be a challenge. But we will face the challenge because we have that experience how to resolve RWS and land issues and everything.
At present you know as it is told that no 4,000 plus acre of landmine is there in KPI itself. And the group company level, you can count it will go more than 10,000 acres. So that expertise, that team has that expertise and there is a strong team which looks after all these things. We take support from the locals also when we go to any states. And so local tire will also be there. So we’ll try all our expertise and we’ll rope in the locals to get these issues also resolved. Because if you have to grow, you have to expand to different territories. Not only in different states but mostly we will be going internationally also very soon.
Unidentified Participant
And sir, any strong order inflows we are seeing in CPP segment or APC segment.
Salim Suleman Yahoo
So as I told you not CIL is already on the book. We’ll be signing the final contract with them. We are bidding for all the new upcoming orders. Also like there are upcoming orders from he, VN and other players. So you know this is a boom time for renewable energy. And we like to you know, make hey when the sun shines. So we believe in that. So we will surely expand on the CPP side.
On the IPV side. As I told you, we have already taken. Once we start progress in this particular order to an extent, we’ll again start adding more room and more IP smaller. It will keep on adding but a bigger one will shortly. Once we show progress in this particular.
Unidentified Participant
Okay, sir. Thank you sir.
Salim Suleman Yahoo
Thank you very much.
Operator
Thank you. Ladies and gentlemen, as management is able to address questions to all the participants in the conference, please limit your question to two questions for participants. Do you have a follow up question? We request you to rejoin the queue. The next question is from the line of Rajat Gupta, an individual investor. Please go ahead.
Salim Suleman Yahoo
Yes, Ajit.
Unidentified Participant
Hello. Am I audible?
Salim Suleman Yahoo
Yes, Ajit, you’re audible.
Unidentified Participant
Yes, sir. Congratulations on the fine set of numbers.
Salim Suleman Yahoo
Thank you. Rajat.
Unidentified Participant
Overall macroeconomic. With the new US President assuming the office and overall tariff war going on, I want to know if it is going to impact our business in any way. I mean I.
Salim Suleman Yahoo
Need to understand. Yeah, let me just explain you.
Unidentified Participant
Through the last.
Salim Suleman Yahoo
Your voice is cracking. I mean. We lost it. Hello, moderator, can you just ask Rajat to repeat that?
Operator
Mr. Can you repeat it?
Unidentified Participant
Yes. You know US President, assuming the.
Operator
Line is not clear, can you just rejoin the queue as far as been left the queue and move to the next. The next question is from the line of Aman Soni from Envist Analytics Advisors. Please go ahead.
Aman Soni
Hello.
Salim Suleman Yahoo
Yes Aman.
Aman Soni
That I missed on that CPP part. Like how we are protected on margin side in CPP segment.
Salim Suleman Yahoo
On the CPP segment, I mean profitability margin at EBITDA level would be around 2020, a little bit. 20% at EBITDA level, CPV margins will be there.
Aman Soni
No, you mentioned we are protected on that particular side.
Salim Suleman Yahoo
So what? There are two ways, you know, we mitigate the fluctuation in raw material prices race. One is by moment. We, you know, decide to take an order, we back to back, you know, sign a contract or we confirm with our panel manufacturers or turbine suppliers and we hedge that pricing accordingly.
Aman Soni
Got it? That means it’s our internal department which is heading the prices, right?
Salim Suleman Yahoo
Yes, yes, yes.
Aman Soni
Understood sir. Thank you very much. Yeah.
Operator
Thank you. The next question is from the line of Hardik Gandhi from HMG Shares and securities Limited. Please go ahead.
Hardik Gandhi
Hello. So am I audible?
Salim Suleman Yahoo
Yes Hardik, you’re audible.
Hardik Gandhi
So thank you for the opportunity and congrats on a good set of numbers. So I just wanted to know a few fundamentals about the IPP model. So if you could help me with the cost of putting up just one megawatt.
Salim Suleman Yahoo
So one megawatt cost, right? Is it fixed or it will be a tracker based?
Hardik Gandhi
Just a tracker based. That’s more efficient for you guys. So I’m assuming you would put, you would be putting up that one.
Salim Suleman Yahoo
It goes from. You can say that depending upon the customization, depending upon the size of land and everything, depending the design, it might go from 3.25 to 3. 3.8595 also depending upon how the land is. If it is straight land, it will be less costly. If it is a, you know, land which is not totally straight, then it will be a little bit costlier because then every row will have a different structure and you have to put track. For every row at this.
Alok Das
Pure technical question you asked is basically what happened. Based on the land that identified we have to see that what is the transmission line up to the local power center we call transmission. So that distance matters and land where it is situated and transmission line and all based on this our transition cost and adding to the capex generally added. So what Salim was telling it varies. That variability factor depends on the exact site which is coming up for the project execution.
Hardik Gandhi
Understood? Understood. So and what would be a good payback period for the IPP projects which we are taking up since we are purchasing the land also along with that we are putting. I’m assuming the 3.5 crore approx. Cost depending the land also. Right.
Salim Suleman Yahoo
We are taking all land on lease only. So we are not investing in land as per se. But you know the payback period ranges from seven to eight months. Seven to eight years for ICT projects.
Hardik Gandhi
Okay, so what is the actual useful life? I know there’s. I’ve read it online that the useful life of a solar module, even the latest technology they mention it as a 20 year frame. But on reality it’s somewhat different. So what would be our actual useful life of a. The paddle.
Salim Suleman Yahoo
See the. If you say there is a lot of stimulation which is done on the panel. You know there are machines which test the simulations and everything. Because at present I don’t think. I think that there is any plant which has passed 25 years. Right.
Alok Das
Solar industries which was first installed in the commercial scale setting of Gujarat 20 years. Generally the design life. So after the design life based on the depreciation of the panel. So we have to just see that that survival whatever this thing. So not a single panel cross two decades as on your design life. So it is on going on. This is for the solar part. But generally government is also very clear. You know suppose after 20 years or 25 years PPA reason. So they want to see the healthiness of the collectors of the solar panel as well as the wind machine. Based on that healthiness they will recertify for next couple of whatever the residual time they generally permit. So that is the trajectory phase for wind industry solar. Because it is not cross state. Obviously time will tell us how to deal with it.
Hardik Gandhi
Understood sir, understood. So since. Since you mentioned there’s a long eight year payback period and along with that the asset keeps on depreciating. And since we don’t know so is there a possibility that in the sixth or seventh year there’s a drastic reduction in the output of the solar panels?
Salim Suleman Yahoo
I don’t think there is a linear degradation which happens on the panel which is tested and which is admin. That’s why I told you there are a lot of simulation which are done on the panel. And that’s the reason they give a warranty of 20 to 25 years. Kind of a warranty. And eight years is very small period for the panel to, you know, have a drastic change or something. Usually they don’t because we have, you know, panels which are set up six years back and they are still generating, you know, the kind of a PLF that we expected.
Hardik Gandhi
What kind of PLF would be just on an approximate basis post eight years, if you have that number.
Salim Suleman Yahoo
As I told you. Okay. That what we are getting is on the fix. We are getting 18% six years, which is one of the best in the industry, I can tell you.
Hardik Gandhi
Okay. And if for. For a brand new one. What is a plf? Just, just in order to compare.
Alok Das
The linear degradation. Is that brand new also? I mean it depends upon brand new. Might be some couple of, you know, bips more degradation happens. It’s very small degradation that happens over a period.
Hardik Gandhi
So you mentioned 80. Is that correct or.
Alok Das
No, 18. 18% is a PLF.
Hardik Gandhi
Yeah. Okay, understood. Thank you. That’s all from my side. Yeah.
Alok Das
Thank you. Yeah.
Operator
Thank you. The next question is from the line of Kush from Banuf Brothers Finance. Please go ahead.
Unidentified Participant
So am I audible?
Salim Suleman Yahoo
Yes, you’re audible.
Unidentified Participant
Many congratulations to Farooq sir. You and entire KPI group for a fantastic set of results and always walking the talk. I had a couple of questions. First was any plans to reduce the pledging and also to get into positive operating cash flow.
Salim Suleman Yahoo
Yes, see pledging. Let me be clear on this. This fledging is a collateral. We have given a collateral long back even before the listing of the company. We had given collateral when we had taken funds from PFC Power Finance contract. So it was a collateral which is still that there is no fundraise through pledging of shares. Let us be clear on that because a lot of we must go to the market which we could say that since the prices have gone down, the banks are selling because of pledging. Let us not get into those rumors because a lot of people don’t have don’t understand the business and they start creating rumor.
So pledging. We have already given a letter to sbi. Now those loans are with sba. SBI has already shown a positive and they said that they will start releasing this LED in a, you know, peaceful manner. Slowly, slowly. They will start leaving. So that proposal is already in discussion with State bank of India for the release of the pledge.
Unidentified Participant
Right sir. And regarding operating class flow.
Salim Suleman Yahoo
Cash flow. See, cash flow will be positive. And if you see this quarter, we don’t put the balance sheet. So next quarter you’ll surely see cash flow positive. I think last year also cash flow were positive only.
Unidentified Participant
Right? And I wanted to know sir, if.
Unidentified Participant
There is any government policy which can have an adverse effect which we should be wary about.
Salim Suleman Yahoo
At present there is no such government policy. I think if you know all the policies are pro renewable energy. You are seeing that a lot of in fact in latest budget also they have shown you know inclination toward increasing the renewable energy. And as we all know our honorable prime minister Sri Ananda Modi sir is also very keen to increase the renewable energy portfolio in India. And want to project to the world that India is one of the leading players when it comes to renewable energy and reducing carbon emission.
Alok Das
So I want to add it here. You see now this our. This renewable energy that formation of policy. Now country is selling about one country, one grid. That means what if you have a project in one state you can take the power to other state also. So this type of facility being created by the government so that suppose let’s say for Rajasthan there’s a lot of solar and Tamil Nadu there’s a lot of winds. So how that winds and solar can be transferred to another state like Odisha. So that type of situation is coming to the green corridor. So that is why I’m intending in the you know opening stage it is a future is very green. So what Salim is selling emphasizing on that point only. So need not be audit for that. Yeah.
Unidentified Participant
Right. Thank you. And one final question sir. I noticed that in the last three months the pace of land acquisition has increased from September to December quarter. So how do you plan on this land equation? The speed of it Is it as per the future contract which are coming or you just keep collecting and then you bid for contracts.
Salim Suleman Yahoo
We have Dr. Farooq Patel, our CMD chairman and management director has a vision of till 2030 and we have those plans set up. So this all mathematical calculation is done by our CMD sir and accordingly he gives us guidance that you know how much land would you require then? So it is. It is not a gut feeling or something. It is a mathematical calculation by done by him and he guides us to that. And accordingly we work on that. And that’s the reason you have seen such a growth. And the landmark as you know the order book is there. So naturally the land bank will. We don’t want to create land bank as a hurdle.
So we are of the resources also. Land bank or evacuation everything is tied up accordingly to the order book. And similarly we you know bid for the orders also depending upon the availability of resources also. So all these guidance is done by Dr. Farid Patel and he intels guide the entire team for all these resource allocations.
Unidentified Participant
Thanks a lot, sir. And all the best for the future.
Salim Suleman Yahoo
Thank you.
Operator
Thank you. The next question is from the line of Akhilesh Kumar, an individual investor. Please go ahead.
Unidentified Participant
Okay. Thank you for giving the opportunity. My first question is regarding our IPP project where we do EPA for 25 years, mostly with UVML and I think NTPC as well. How strong those PPAs are there, like say.
Unidentified Participant
Tomorrow if model prices comes down and donation cost comes down. Do they have provisions for canceling out our CPA with some certain notice how we are placed for that kind of thing.
Salim Suleman Yahoo
These are long term PBS signed by the institution, state government institution. These are power institution. Secondly, I would also say that the prices, you know the parity has come into the solar per unit prices. So if you see that PPA prices I don’t think they will go further down. This will be some, you know the price which is feasible for the operator, for the developer and for the institutions or the discoms also. So this is a win win situation. Because any business to prosper there should always be a win win situation for the customer and for the seller also.
So accordingly, I think this is the right prices which will not go further down. But nevertheless there is no such condition in the ppa. We say that we can cancel it until. Unless there is a. We keep on supplying them the power and is required and committed to them.
Unidentified Participant
Okay, thank you. One more question I have is we did a couple of times qips and both time we have noticed that the. I think we have done road shows and management might have impacted a lot of investors. And I think they were very well known FIIs. But I don’t able to understand why they keep dumping immediately after getting allotted. You might be in touch with them like say Morgan Stanley. You know, they get allotted in August, they start dumping in the September itself. In the law, what may be the rational. I am not sure like you are the right person. But yeah.
Salim Suleman Yahoo
No, you see we keep on doing calls with them. You know, quarterly calls every calls. When they do. We do do with lot of bigger players is Morgan Stanley. Whether it’s other bigger players also now you need to understand the international. You know the sentiments of the sector also as somebody was asking about the US and everything. So they sometimes they have that mandate that you know, this particular sector we will not increase or we will try. We’ll try to exit this sector. So internationally there are different.
These institutions have different their own calculation on the sectors and everything or depending on that. But I would like to highlight over here that KPI Green is not a manufacturer of panel. Because if you see a lot of bigger players which have hit. Majority of them which are hit are the manufacturers. We are developers, we develop and majority of our contracts are within India at present also. So there is no impact on our. You have seen our results there. We have given a superb result.
And if you see, you know, compared to other players, we have recovered what price we fell down also because of those sellouts. We have recurred that also, and we will surely. But it is a sentiment you cannot. Because as we all know, the market is depending upon the supply and demand. Somebody’s demands automatically once they are out, then automatically other people also will buy. So we still have a lot of bigger players like Vanguard which is one of the international biggest investors. We have Morgan Stanley. We have other bigger players which are far more bigger than the people who have dumped. Also they have entered because they understand the business and they have entered into that.
Unidentified Participant
Okay, that sounds great. And I think that is excessively like unrelated things people are putting to the KPI which we are totally domestic oriented and nothing related to that. Us last thing the as we are presenting that we are well ahead of time for that IPP project for 200 megawatt of Guv NL. So can we expect that thing to be happening in March itself this quarter? Like if we are ahead.
Salim Suleman Yahoo
We are quite ahead of that. You know, depending upon the. You know the work progress, we will try to majority of the portion will be completed by March because you know what the the government, the substation, the gss what we call it the government substation that is in the scope of the GNL or the government institution. And it happened first time ever it has happened that you know we have completed the project and they are still struggling with the substation automatic. Basically the clause says in the PPA that if they are not completing they will have to pay us without taking the power. Also they have to pay us because our plant is ready. So we are in a win win situation over here.
Unidentified Participant
Okay, that is great. And the plant will be like say deemed operational only when we have the entire 200 megawatt energized or it will be in phases.
Salim Suleman Yahoo
So plant will be 240 megawatt DC it will be energized depending upon the phase. Also there is a. There might be some depending upon the gss. I am telling the GSS but we will complete the plan before you know will try majority of the plan will come completed before March.
Unidentified Participant
Okay, thank you. Thanks a lot and for congratulations for the great performance and wish you. Thank you. Thank you.
Salim Suleman Yahoo
Thank you sir. Thanks.
Operator
Thank you. Ladies and gentlemen, please limit your question to two questions for participants. Do you have full up question? Please request you to rejoin the queue. The next question is from the line of Ashish Rampuria from family office. Please go ahead.
Salim Suleman Yahoo
Good morning.
Unidentified Participant
I’m good. How are you?
Salim Suleman Yahoo
I’m good. I’m good.
Unidentified Participant
So I think congrats once again. Congrats once again for the wonderful performance. Certainly a couple of questions. This land bank that we show is the land bank which is free for us to put class or it includes the land bank where we already installed.
Unidentified Participant
Our solar plants.
Salim Suleman Yahoo
This landmine includes everything what we have installed. But installed is not too much. You’ll still have a majority portion is available for us. And land bank is something which we keep on adding. You know, it’s a real time exercise. We keep on adding as and when because these are not one land parcel. These are multiple land parcels which have taken over a period of time. We keep on adding and that is one of the skinny USP of KT is group that as I told earlier also in the guidance of Dr. Faruk Patel that we keep on adding these resources so that we have them ready for use whenever the need arises.
Unidentified Participant
So out of this 4,000 acres, right. What percentage would be today free to be deployed or not used at this point in time?
Salim Suleman Yahoo
Approximately I think 2000 acre would be utilized and 2000 acre which is yet to be utilized. And we are adding more and more. So you will see now you will see a rampant growth in the availability of land bank because we are taking big, big projects. So we’ll keep on adding at a faster pace.
Unidentified Participant
Got it. This moe we have done with Rajasthan government and Odisha government. Can you throw some light in terms of the capacity you’re talking about? Is it ipp, cpp, what time duration and so on so forth?
Alok Das
Yeah, basically we have first signed an avoid Rajasthan government with an intention. Because Rajasthan government we want to go for local small and medium scale that industries those who are need in power and local employment generation. So we have done that. Whatever your local substitution available. We have requested government to list down all the land availability. Generally in Rajasthan government revenue lands are available on a list basis and local substation where I can trade in the power.
So we have during our MoU and followed by 2, 3 meetings with their government body. So they said that okay, we are under study and give it to us. And after once we get the power immigration and land facilities. We want to measure some other facilities also to be incurred. We have already created one of our establishment in Jaipur already. So we we want to create this job by maybe by next three to six months. And not only that, what are the progress is happening. CMO office is regularly following with us what are the development what kind of support is required.
So that means the willingness of the government political will there and followed by our on a fortnight or monthly basis follow up. So we are going ahead for our target. We have signed Almost, you know 500 megawatt kind of wind solar at the beginning and followed by that is the basic letter. So this is jobs are going on as far as your Rajasthan is concerned, Orisa, recently we have signed, so we have also done. Similar kind of approach for wind and solar and some. Some part of the other technology. So we have requested at least 1500 megawatt kind of solar potential. That’s it. So they are also that Gridco which is a local body, they said that we want to calling after the Odisha happened recently. So they will call all, all sort of investors in the MoU and they will give out the resource where is available. So accordingly we will plan for the state of Odisha also in the similar way what you are planning for Rajasthan.
Unidentified Participant
And this will be CPP or IPP for each of the states.
Alok Das
Both. Both. Both.
Unidentified Participant
Actually combination. Understood. I also see that we have marked out Madhya Pradesh, Telangana, Andhra Pradesh. Right. In the PPT that we have release in that light blue color. Right. So where are we on that? Is it some tie up that is already happening in those states or that is a work in progress.
Salim Suleman Yahoo
Yeah. You know, still we finalize everything will not be able to disclose on that. But yes, we are venturing into those states also.
Unidentified Participant
Understood. And you also mentioned about that soon you’ll hear about international. Any color that you want to share right now or should we wait for your disclosure?
Alok Das
I think it’s better to wait. It will give you a surprise on that.
Unidentified Participant
Sure. Okay. Thank you. Appreciate it and wish you all the best.
Alok Das
Thanks.
Salim Suleman Yahoo
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Sudhir Beta from Beta Family office. Please go ahead.
Sudhir Bheda
Good morning. How are you sir?
Alok Das
I am fine. I’m fine sir.
Sudhir Bheda
Congratulations on the solid set of numbers. So just one question. So see we are growing at say 100% on top line. Maybe little less than say 70, 80% on the bottom line since last three years. So now I just want to ask whether there are enough opportunity for next two, three years that we can show good growth on a higher base. So just wanted to know the opportunities in next couple of years so that we know our growth momentum can continue with this kind of growth. We can continue.
Salim Suleman Yahoo
Right. So on the opportunity side you can. You are able to see that in the market itself there is a lot of boom for the renewable energy. And there are multiple tenders, multiple orders from the government institution, from private conglomerates, some private players, individual MSMEs, you know, mid corporate kind of companies. Also everybody wants to go for a renewable energy. So there are a lot of opportunities. It’s only that how much to take and how much to. Because we believe that, you know, just taking opportunity is not important. But executing them before time or on time is an important part. And KP is known for that.
So we are cautiously, you know, trading into that as far as opportunity concerned, believe me. I mean, we can get double or triple of this order book also if we keep. You know, you know, more and more bidding and if we go to the market with full force, so we are cautiously trading that we have to execute also. So from that point of view we are a player who will keep up to the commitment and will execute on the IPP side also. As I told earlier that, you know, it’s a decision of also on the leveraging because IPP require capital. So we cautiously do over there also. But I think the growth will continue with the opportunity that we have taken. We have taken over thinking that we will keep on maintaining the growth level that we have committed to the market.
Sudhir Bheda
Great. That is a nice. So nice to hear. So all the way sir. Thank you.
Salim Suleman Yahoo
Thank you sir. Thank you very much. Thank you for your support.
Operator
Thank you. The next question is from the line of Weber Lohda from Commercial Flight Movers. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I wanted to understand two things. So firstly, when we are tendering for the newer CPV projects, are we facing any margin margin issues over there?
Salim Suleman Yahoo
The margins are. Is a factor of various, you know, input that we take. You know, whether it is execution. We have expertise in execution. We have expertise because we have our own plants. We are doing it for again we have, you know, you can say a little bit our group company supplying us the infrastructure which is on a timely basis. And again, so as you have seen that and the margin has always been, I mean on the CTP side there will be other players also.
But also the market looks at who is a player who will give me a long term commitment, who is a player who will maintain the quality, who is a player who is capable of executing within the timeline that is committed. There we stand, you know, differently compared to other place. And that’s where. That’s the reason you are seeing that we might be pricing higher but people are still coming to us because of our ability to execute, because of the resources that we have. Because evacuation we also provide evacuation, we also provide land. So from that point of view we stand aside and we are able to maintain the margins.
Unidentified Participant
Okay. Right. And so as we are going forward like more portion of our revenue will be from IPP segment. So what type of pat margins can be expected at blended levels for FY26 and going ahead.
Salim Suleman Yahoo
Pat margin will be able to maintain the pat margin because our business is a combination of CPP and ipp. I can tell you that going forward our IPP component which at present I think is 13 and 17, 13 is IPP this quarter and 17 is the CPP which we plan to take it to the level of 22 to 21% kind of going forward. So automatically, once my CPP increases both of them, so we will be able to maintain the margin.
Unidentified Participant
Okay. Okay. Right. Thank you, sir.
Salim Suleman Yahoo
Thank you.
Operator
Thank you. The next question is from the line of Mitesh Vora, an individual investor. Please go ahead.
Unidentified Participant
Hi sir. Thanks for the opportunity. Wanted to ask regarding the pledging that the earlier person told regarding the pledging. Do we see the all the pledging would be removed and also what is the pledging percentage currently?
And the second question is regarding. I know there is a separate subsidiary KP Green Hydrogen. But do we also plan to take the orders for the hydrogen as well as the orders for biogas coming to us?
Salim Suleman Yahoo
Yeah, I think pledging question. I already answered that this is not a pledge for raising fund. It is just a collateral given. And that was given in long back in 201920 when our first plant was setting up. And Power Finance Corporation at that time wanted little bit comfort because we were a small player at that time. And the same pledge is being carried on till now by SBI because that loan is already paid. And also. But SBI is giving new loans and they are. But we have already given a letter and we have approached SBI also and they have given a positive response that they will start releasing the pledge also.
So at present you know the pledge that is there, I think it’s 45 of what parks has total share is. So it would be around on the total pledge it would be around 21 to 22%. But this is again I’m highlighting people are getting that you know this pledge is not for fundraiser. It was earlier given and it is just a collateral. So the price of the share will not. Because the loan that we have from SBI present is around 400 or final for the new card of project. And the amount of pledge you can understand is around 4,000, 3,000 to 4,000 crores of that. So there is. There is no you know margin issue or even with the rewards which are going into the market.
Sudhir Bheda
And the second question regarding the hydrogen. Thanks.
Salim Suleman Yahoo
On the hydrogen. Yes, you will again see a surprise on the hydrogen side will be shortly. I mean giving you a smaller plant. We will be setting up, we’ll be doing the prototype and everything. But we are coming very strong in the hydrogen space also. I mean you. I request you to keep watching KB for the hydrogen space also there is a lot of surprises on the hydrogen space because the vision of our Dr. Saurav Patel, our TMD chairman is that you know if there is a new technology of their thing, KP has to be there in that particular segment also. And we are keen on increasing that. So we have a lot of things. But right now we have kept them undercover because we would like to give surprise to the market also.
Unidentified Participant
Thanks a lot.
Salim Suleman Yahoo
Thank you.
Operator
Thank you. The next question is from the line of Rajat Gupta, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hello.
Unidentified Participant
Yes. Congratulations on the wonderful set of numbers.
Salim Suleman Yahoo
Yes, Rajesh.
Unidentified Participant
My question is regarding the growth trajectory. I mean in the December quarter of 2023 we have shown similar increase in revenue.
Salim Suleman Yahoo
And your voice is cracking, Rajat. Again is there any issue from our side or. It is from the website. I am not able to.
Unidentified Participant
Am I audible now?
Salim Suleman Yahoo
Yes, you’re audible. Yeah.
Unidentified Participant
Yes, we have shown improvement in December quarter in 2023.
Salim Suleman Yahoo
Yes.
Unidentified Participant
And later than our EBITDA and revenue fall in March quarter. So is that any seasonal factor affecting.
Salim Suleman Yahoo
I I explained this particular question that you need to understand that we do billing on the milestone basis. And some milestones are there where the service component is built. And mostly these components are built in the middle of the where there is a slack period where the materials or anything take a slack. So in those milestones we put the service component is billing is done so automatically. You can see that the EBITDA during that portion, that is, you know, the second quarter usually goes up, then it tapers down to third and fourth.
So there is no pressure on the ebitda. It’s just the cyclicality. If you see the trend, it has always been a little bit cyclical on that second quarter and then taper down in third and fourth quarter. Because majority billing then is done in the fourth quarter.
Unidentified Participant
Similar challenges in upcoming quarter due to the same problem.
Alok Das
These are not challenge. I would say this is just the characteristic of the business. It is not a challenge. We have. We know that these are going to taper down there because when we take a material component in the billing. So at that time the margins and service company have a better margin.
Unidentified Participant
But is it. It is going to be the same like the last year, right?
Alok Das
Yes. But you know our margins will be maintained year on year. If you see our margins have been maintained and they have been strong, one of the best margin in the industry. You can say still.
Unidentified Participant
Okay. And one other question is regarding the macroeconomic that US President Singh doesn’t have a very positive attitude toward the renewable energy sector. So is it going to affect our business model considering that our peer competitors might can shift their competition towards our domestic trade?
Alok Das
You need to understand the US Market major decision will impact the manufacturers. We are not manufacturers. We are developers. We set up the entire plant and all my contracts at present are within our country. Okay. So there is no direct or indirect link to the. The US market or anything. But I understand the sentiment is there and that’s why the you know the market has got hit, the sector has been hit, you know, all the players in the sectors have got hit. But we are not linked to the manufacturing of panels or anything. And majorly these people, you know the manufacturing panel will get hit or something. So from that point of view we are very much safeguarded and that’s why you have seen the better result compared to all other players in this quarter also. So I don’t think any impact on the US will impact our business of the operations, you know. Matrix.
Unidentified Participant
No sir, perhaps my question was wasn’t really clear. My concern was that hypothetically if our competitor face any challenges due to the tariff plan or whatever the US President attitude is toward renewable energy and they might can shift their trade towards competing in the local domestic segment. So is it going to affect our EBITDA margin or trade in any way?
Salim Suleman Yahoo
No, no, no, no, no. In fact if for example if one of the panel manufacturer he. He also want the competition in between will be between the manufacturers and if the manufacturers if there is a cutthroat competition the manufacturers matching the prices of the raw material we go down and, and they will cut down their prices and everything. And it will be benefit for me because I am a developer, I’m not a manufacturer. So naturally it will be benefit for all the developer if the prices go down.
So I see it from different point of view that you know if there is a cut competition the manufacturer and the US impact is on them they will cut the prices and I will be in the you know beneficial for that particular.
Alok Das
This is number one. Number two I today you know that that India is really under make in India initiative whereby today what is the production capacity in India in a solar manufacturing capacity over 40 to 50 gigawatt. That is the target for next years. Today there could be 16 to 20 gigawatt. What days we are going Today in India market there is a last year we have completed solar wind both together 2324 mega gigawatt. So under make in India under PLI scheme and the target of 500 gigawatt.
India is a self reliant India making their own target. So whatever the policy, regulatory or tariff imposed by US government in our opinion in India will be self sufficient. And what Salim is selling. If some manufacturing is facing some tariff issues obviously they will be floating that panel here in India. We being a developer, we are not a manufacturer. So we are in the best position to deal with.
Unidentified Participant
Noted noted sir. And one more last question regarding the IPP segment. The revenue seems to be started generating as per the PPA after.
Unidentified Participant
Seven, eight years as you mentioned. So the earlier project we have set up is that the revenue have started from our earlier project that is being set up under ipp.
Salim Suleman Yahoo
No, what we said that it’s not Revenue generation is a payback period. Whatever we have invested is that entire payback happens in seven to eight years. After that it is only the profits you can count out as. Right. So that earlier projects we have already as you are aware that the QIP that we raised we have repaid all our loans and that earlier projects are now just cash generating cash cows for me because there is no debt or anything or repayment on those earlier projects.
So we have cleared all those things and there’s a company is getting a good, you know, unencumbered or un tied up cash flow from those projects and the new project that we are setting up they have a, you know what we say the payback period or what we have the breakeven point of seven to eight years so that after that now there’s a Life is of 20 to 25 years. So automatically those also be a very big cash call as we go forward.
Unidentified Participant
Okay, that’s it from my side sir, thank you very much and we appreciate the hard work you are doing sir. Have a nice day.
Alok Das
Thank you.
Operator
Thank you. The next question is from the line of Govinda from Natwarlol and Sunstrong vocals please go ahead.
Govinda Alagi
Hello, I’m audible.
Alok Das
Yes.
Govinda Alagi
Yeah. Firstly congrats on a good set of numbers. My question is, I mean you are as you said that you have good orders in the ipc but due to you know the care the capex amount you are looking forward for raising the debt. I mean you have strong cash flows and I can you know see that it will be going to sustain. So why don’t you execute, you know start executing now onwards. And what would be the capex amount on each plant in the IPP segment?
Salim Suleman Yahoo
We have already started execution as I told you one of our project ahead of schedule. So we’ll be energizing of the COD of that plant will be done ahead of schedule. The other plants also like 50 megawatt gnome. Again we have started the plant even before the financial closure. We have invested our own equity and we have started working on that plant also. So believe me, you know usually the decision period or the period for construction given by the PPS is two years from signing the PBS. We target that we will close it within 12 to 15 months.
So we are ahead in all our execution. There are a lot of things which are needs to be catered right from the land to the evacuation substation, evacuation permissions and everything. Just because we are very much, you know, ahead in the collecting the resources we are able to execute before time. And believe me, all those will be done before time.o
Govinda Alagi
Okay, so secondly, I wanted to know that any geographical impact because you are exploring new regions, right? I personally think that Gujarat is one of the hottest state out there. So any you know, views on that?
Salim Suleman Yahoo
There is no impact because we are not a new player who is entering the market for the first time. We have been in this industry for more than decades and we are the only player which has capability of wind as well as solar. So very few players, you know, very few players have these capabilities and in development. And we have done a lot of bigger projects. You know, more than almost 3 gigawatt of projects we have done overall in this industry. So we have those expertise. And I understand there will always be challenges.
But we are well prepared for those challenges and we have a good team which includes X Jeda Jedco, you know, retired IPS officers is officers. We give the guidance and they help us in you know facing these challenges. So there will be challenges but nothing that which cannot be handled.
Govinda Alagi
Okay. Lastly, may I notice or total order book value at present.
Salim Suleman Yahoo
It is very difficult to value because the orders are different. Different. Like at present I have more than you know 1.2.86 gigawatt of order book which is there as shown in the presentation. Out of this. There will be orders which are some orders like convert like other order which will be without materials like panel and anything. There will be orders without WINDM anything and there will be orders with windmill with panels also like Mahajinko or anything.
So exactly. You know bifurcating them ways not because the figure will not tally up with that. Because the every order has a different. Different what we say calculations for or the. You know the value. But I can give you megawatt that we are showing the presentation. We have approximately 2.86 gigawatt of as of January 15th.
Govinda Alagi
Okay. Okay. Any side or you know expansion strategy on cpp. Like how what would be on the you know the cost reduction and what would be the power evacuation grid transmission cost and how that would be, you know come down as you grow with orders in the CPP segment.
Salim Suleman Yahoo
As I told earlier, you know our CMD Dr. Faruk Patel has always, you know guided us to leveraging on the latest technology. So we are working on latest technologies for the reduction on the cost. Also we have robotic. We have network operation system which is one of the few big players only have this network operating system. So it helps us also to check which panels give a better generation and everything. All those history is there with us. This helps us to work on lot of things on acquiring more clients, on reducing the cost. You know, a lot of designing also happens on that. So we are working on that cost reduction, everything, and we play it in the market while. Acquiring the new customers. These all things play as a USP of our company.
Govinda Alagi
Okay, okay, fine. So that’s it. From my. One more, one more. The capex on each plant in the IPP segment.
Salim Suleman Yahoo
You mean to say capex on each plant like their ipp? We have different plants. We have hybrid plant, we have solar plant. We have solar.
Govinda Alagi
On an average. On an average it would be.
Salim Suleman Yahoo
See a hybrid. I mean if I, if I say around 6 to 8 for the wind portion, you can say 6 to 8 per megawatt for the wind portion. And when it comes to the solar portion, it ranges from 3 to 3.7585 depending upon the land and everything. All factors are things it’s not about. It’s just a ballpark figure but exactly. It depends upon the land, it depends upon the evacuation, how far as Dr. Anunka has told us that, you know, evacuation, all these factors play a role when it comes to the pricing of the ipo.
Govinda Alagi
Okay, so that’s it from my side. Thank you so much. Wishing you for your future endeavors.
Operator
Thank you. The next question is from the line of Agustier from Cao Capital. Please go ahead.
Agastya Dave
Hello. Am I audible?
Alok Das
Yeah.
Agastya Dave
Thank you. Thank you very much for the opportunity. So you have answered most of the questions that I had. One question was this is remaining words. Probably at the earlier part of last year, mid to early part of last year, a lot of bottlenecks started appearing in the supply chain. So there was shortage for particular ancillary parts, for example transformers was an issue. There were number of issues. So how are we placed now? How do you see the supply chain and the supplies or various components that you need for execution? How is that place as of now?
Salim Suleman Yahoo
See as I told you earlier, a lot of planning goes into this. When we set up these plants and everything, we do a thorough planning. We are guided by our Dr. Patel, our CMD that you know how to manage the supply chain impact and everything. So you know, we are always proactive when it comes to the execution because we have a target that you know we will complete all our exhibition beforehand. So accordingly, we plan for the supply and we plan for our other component of execution also.
And as I told you, you know, on the supply side also, the major portion of supply component which sometimes takes more time is the infrastructure. That is the MMS structure, windmill towers in house by our KP Green Engineering, our own factory. So there we have that leverage that you know, we can get it at any time kind of. And that’s why this gives us a upper hand. Compared to our competitor that we can execute project within timeline or before timeline.
Agastya Dave
Full faith in your capabilities. My question was slightly different. So let’s suppose you get a brand new order today. So how long will you and you start working on it. So how long will it take for you to execute the entire project? Let’s say the project is 100 megawatts. Solar with tracker and you have the land available with you. So with that, how long does it take for you to execute that for your.
Salim Suleman Yahoo
Executing? I mean, believe me, I mean we might, if we go full fledged and we put all our resources, we can do within, if it is pure solar, it can be done within, you know, six to eight months. Also this is very short a period depending upon the all other factors. If the evacuation is on the other side, like if you see Kavada project, we are again doing it as a record times, period, timeline and that is also the tracker base.
Agastya Dave
Right, Right. So another thing that you mentioned in one of the answers was that you, if you want, you can bid for bid and win 2x the number of orders that you already have on your hands. Yeah. So again sir, in terms of demand for going forward, so the execution side is very clear. You have the order book, you have the everything planned and whatever your targets are for the next two to three years, you will execute those.
But in terms of further demand, what is the state of the demand? Is it accelerating? Because from where I stand I see that the renewable side is the biggest source of private sector capex as of now in the country. Every industry is going for it. So is there a let up in demand or the demand, do you see it continuing at the current pace or do you see an accumulation?
Salim Suleman Yahoo
No, I see the demand rather increasing at this space because you know, a lot of players are entering into it, lot of benefit. Government push is more important. You know, you see light of, you know, government has started on the renewable. They are also thinking of going into offshore windmill and everything. So demand I don’t think will, you know, reduce or something. In fact, I see it to be increasing going forward because bigger projects are coming and a lot of, because our target, the national target is so big that we have to accelerate the demand to achieve that target within the timeline specified.
Agastya Dave
There was one particular allocation which was made in the budget this year which saw a substantial jump and that was the rooftop project that the Prime Minister has been speaking about. And the government has actually committed a lot of funds in the budget. So I was just wondering, sir, since you are a large scale EPC developer, I was just wondering, are you going to be part of that project, entire program, the rooftop solar, I don’t remember the name. So whatever the permission is given.
Salim Suleman Yahoo
Yeah, yeah. There are two programs where government has, you know, giving assistance or a subsidy for that. That is for Harger Solar. That one project program is there. From that program we are also setting up, you know a couple of orders over there. But we are at KPI. We are basically more on a ground mounted and a bigger project.
Agastya Dave
Sir. That is what I thought. I just wanted to clarify, sir. So thank you very much for conducting the concol again this quarter. I hope you also do it for kpel.
Salim Suleman Yahoo
Surely, surely we will be shorter.
Agastya Dave
Thank you very much, sir. All the best for the future.
Alok Das
Thank you.
Operator
Thank you. The next question is from the line of Pareen Gala from Sage one. Please go ahead.
Parin Gala
Yeah, I wanted to understand that module price is what percentage of the capex per megawatt.
Salim Suleman Yahoo
Independence? I mean around 60, 60% would be the model price.
Parin Gala
Okay, so I am just little curious that module prices over the years have significantly corrected. Right. So I still wonder. Bidding still happens at three at least the government levels. The IPP is at 310, 315, 325. Why would per unit cost not come down?
Salim Suleman Yahoo
Can you repeat the question? I’m not clear. I mean you want to understand why the prices of the tender not coming down or why the prices.
Parin Gala
Yes. In the reverse bidding or whatever in the auctions when the module prices over the last few years have crashed almost 60, 70% and you know, in the 2020 times we have seen NTPC and Sechi orders bid at 2 rupees. Also I understand at that time model prices were high and you would not be able to make money but today at that price that is a possibility. I’m just trying to understand why the unit prices in the auctions are still at three, three and a half or whatever it is. 60% of the cost is module cost at the end of the day.
Salim Suleman Yahoo
Yeah. And when the earlier if you say there were very less off takers for those projects. If you see earlier lot of tenders where you know were not allocated because of the disparity between the model prices and the rate that was now with the model prices coming down, there are a lot of offtakers have added and they have also, you know, because see until unless as I told you earlier, there should be also win win situation for the buyer and the seller. So if there is a profitability only then the people and then the sector will progress. So from that point of view, I think now with the.
Parin Gala
Profitability of the sector is a little too, I mean to generous. I feel sometimes the kind of margins that everybody is making, not just our company, the kind of margins are being made, the kind of roes that are being made. I think it’s more than generous actually, isn’t it?
Salim Suleman Yahoo
Naturally. See, because we are creating the differentiation in the market now. See, there are players who will get but until analyzing a lot of players will take the opportunity orders whether they will execute within time period, whether they will give the same quality, whether they will, you know, use, you know, the same design, what they have been a lot of factors, you know, derive the margin. We are doing a good margin because.
Parin Gala
I’m just saying. And when there is a lot of competition, you know, there are a lot of bidders for one particular project itself. And reverse option still the prices are pretty high. I’m just trying to understand that when cost of per megawatt has come down,
Salim Suleman Yahoo
The unit prices inside instead of going down have gone up. That is what I’m trying to understand that logic. If you see on an average 3 to 4 crore per megawatt is the cost and the unit prices that government tenders and everything is giving around 2.75 to 3.3rupees which is in parity which has been because I I know the sector long back when government started to subsidy through JNMRE Jawana Nehru Mission Renewable Energy. So at that time the cost per minute award was 15 crore and the cost per unit was 15 rupees.
Today they are in parity again. I mean the cost per megawatt is on 3 to 3.5 to 4 and the parity is. I mean that at. On an average we get three rupees per unit.
Alok Das
I can add.
Parin Gala
Okay.
Alok Das
Like what Salima was telling. Okay, I’ll just tell you. Previously your question was why the reverse auction price is not coming below as. Because your panel cost is coming reduction. Right? That’s your specific question. So now.
Parin Gala
Biggest part of your prefix.
Alok Das
Yeah, yeah. So now today whatever the reverse suction coming based on the developer who are bidding no that there are two components. One is final cost, another for the balance of cost. Now this balance of cost previously whatever the BOP cost was there today because of the competition the component price is going high. So that is what all the bidders those who are pending in a sustainable manner on a levelized cost manner. So they are coming on a. In a reverse auction you can see it is coming to 3. 3.12 something in that range. So that is coming to on a dividend cost.
If it is coming certain kind of fix that every where you are telling the name of the NTPC and all. So they need certain firm power. Obviously you have to plan it your system design. So that is why that rate is coming over four rupees as a reverse option something like that. So that costing is coming based on. Because life cycle basically you have to come with the power kind of farm power you have. So that is what that costing which is coming previously B components coming high even the A component little your reductions with the value addition. So that is what it is coming towards the APPC value.
And if it is not coming to the level as cost nearing to that APPC value of a. You know, the distribution company. So that is to be approved by regulator. So regulator also see that why the prices should not cross beyond the PPC value. So that is why it is coming in between 3 to 3 years 3.25 something like that.
Parin Gala
Sir, is cost of land a major component for the cost being high also? Cost of land.
Salim Suleman Yahoo
Land is on lease. We are taking land on.
Parin Gala
Yeah, it is on lease. But even lease prices are higher, right?
Salim Suleman Yahoo
No, so private. I mean, still, I, I don’t think it is a major component of the entire project call because towards the panel only the panel derives the profitability also to an extent.
Parin Gala
So my other question is. Salinji, in this entire order book of 2.8 gigawatt that we have, what portion of that order book also has an OM component to it?
Salim Suleman Yahoo
I would say 100% of the order books come includes O and M.
Parin Gala
Okay, so then sir, in the next.
Salim Suleman Yahoo
On the CPSC ITP is my own. So I can, I mean my own three years minimum. The condition always is there that minimum two to three years OM has to be handled by us. And later on they will think. But believe me, we have the technologies and everything which are, you know, robotic cleanings and everything. So naturally they will continue the O and M with us only most of them.
Parin Gala
So sir, in the next two to three years what kind of OM revenues can we expect out of whatever we will execute? Approx.
Salim Suleman Yahoo
See for what we say at C and I CPP there my revenue, you know for O and M I charge approximately 4 to 5 lakh per megawatt per year with an escalation of 2 to 3% year on year. So at present, for example If I have TPP installed capacity of 362. So you can say that per year going forward, you’ll see around because some a year or something we give free onm. So from you can say once this all matures, you will have around this 362megawatt will give you 36 crore of ONM and lease. Because we also charge 5 lakh for lease for per annum per megawatt. So approximately 36 crore which would be what we can say about figure for this 360. And whatever we add will keep on adding to that.
Parin Gala
No sir, land. Land is over and above the 5 lakhs.
Salim Suleman Yahoo
Yes, yes. Land is other 5 lakh lease and 5 lakh. O and N.
Parin Gala
Understood. And so last question. Are we doing something on the battery storage side? I mean not maybe the manufacturing side obviously but any orders where we, I mean in the press series are or anywhere where there is a battery storage component to the option. But are we, are we looking into that vertical as well?
Salim Suleman Yahoo
Yes, yeah. Yes, we are at nascent state. We are looking to that. See, as I told you, if the technology is need to be supported, we will leverage on the technology. So we are in discussion but at present they are at nascent stage and we will shortly be coming in public domain once we finalize all the things.
Parin Gala
Sir, last question. This 5 lakh of land leases also per year per megawatt, right?
Salim Suleman Yahoo
Yes.
Parin Gala
Okay, sure sir, all the best. Thank you so much. Yes.
Salim Suleman Yahoo
Sorry for megawatt, I’m saying that is around three acres or something.
Parin Gala
Yeah. Yeah. I’m not sure. Yeah. Yes. Thank you.
Operator
Thank you. The next question is from the line of Kishan Kumar from Lion Hell Capital. Please go ahead.
Krishna Kumar
Congrats, sir. And lot of questions have been already asked. Just one point. If you could talk about. Sir, you talked about. Efficiency in terms of timeline on projects. So if you take CPP projects, you know what kind of timeline do you kind of complete projects from signing contracts to compared to other other competitors. Can you give some color of the advantage efficiency you have? Yeah, Krishna.
Salim Suleman Yahoo
Yeah. See, every project has its own characteristic. So if the project is pure execution without any land, without any evacuation or anything, I might complete, as I told you, within I put food force and I can complete 100 megawatt within 6 to 8 months also not an issue before that also. But when it comes to land, whether it’s usually, you know like margin co we have got 18 odd months or something. So we have to complete that. Because the land in a collection is also an evacuation is an important part.
So any project timeline major time goes into the evacuation and the land. Whereas the solar projects it is very. You know, I would say it’s a. Setting up the solar project will not be a big challenge. So our execution capabilities are very fast. We have done projects in record times. Whether it is ours or it is customers also. But only thing that. What kind of project is that? That depends upon that. You know, the characteristics of the project.
Krishna Kumar
Second question. There are some states like for example in Tamil Nadu, you know, the land is also acquired. Basically there is nobody kind of leasing out land at this point in time. So would you be interested to work in such geographies also, sir? Or you would only like to work in areas so.
Alok Das
So. So you talked of your questions about Tamil Nadu, right? Very specifically you’re asking.
Krishna Kumar
Yes.
Alok Das
If you see the the geography of Tamil Nadu, there is only private land acquisitions available. So government land, probably they are not near term. We are attempting a demography where government is supporting by way of long lease of their government revenue land. So Tamil Nadu is not our first that kind of priority as in today.
Krishna Kumar
Sure. Understand. So you wouldn’t like to invest into land basically as a model. You would like to have more leasehold land to where you can work.
Salim Suleman Yahoo
Basically we have resources, we need to allocate those resources accordingly. I mean buying land would curtain my capacity of expanding further. So I don’t want to put that on the debt side. And accordingly we are going with the lease because that will be the little bit asset light model for you.
Krishna Kumar
Talked about two MoUs with Rajasthan and another government. So these are exclusive to you or can the government also open up another MOU with some other player also? Similarly, how do you see it evolving, sir, in these two states?
Alok Das
No, basically what happened those who have signed for MAU that particular state. State has gone got certain moral obligations to provide the resources. What we have asked out of that that mou we need certain resource creation to establish the project these two states. So government is proactively working how to allocate the resource to the developer so that project can be developed. So this is. As of today this stage is happening. So we are trying to first create a resource. And after that we’ll be doing more like CPP IP project there also.
Krishna Kumar
Thank you very much and wish you all the best.
Operator
Thank you. The next question is from the line of Pavan Kumar from Shade Capital. Please go ahead.
Pawan Kumar
Good afternoon, sir. Am I audible?
Salim Suleman Yahoo
Yeah.
Pawan Kumar
Most of my question answered only one question. Like you have mentioned that you are looking for opportunities in overseas also. Tell me the reason behind it. Considering you are telling like already there are a lot of opportunities in the domestic market.
Salim Suleman Yahoo
Pawan, your voice is cracking. Can you step little aside from the mic because it’s bursting. I’m unable to clear. Get the clear question.
Pawan Kumar
Yeah. Is it clear now?
Salim Suleman Yahoo
Yeah, it is clear now. Yes.
Pawan Kumar
Yeah. My question is like you are mentioning that you are looking for some international opportunities also. So what is the reason for that? Yes, to understand.
Alok Das
See as I told you, international opportunities. We are approached by international players. We are. We are looking out for international. We are doing study on international markets also. So. But all these are at nation state. We will not be coming out in public domain until. Unless we have some construction constructive roadmap for that.
Pawan Kumar
Okay. And do we see some like advantages visa vis the domestic market?
Alok Das
Naturally. Naturally. Until and unless there is an advantage will not step into those market. So there is an advantage. There is a benefit for which we will be, you know, pouring into those markets.
Pawan Kumar
Okay. Okay. Thank you. Thank you. That’s the question. Thank you.
Alok Das
Thank you.
Operator
Thank you. The next question is from the line of Ashish Rampuria from family office. Please go ahead.
Unidentified Participant
Thank you. One follow on question. I think you mentioned that there’s something also in green hydrogen that might get announced. What will be the KPI Greens play that green hydrogen opportunity.
Salim Suleman Yahoo
It’s a KP group. Right. So we will be under. But we. Wherever it is. Like for example, you understand KPI green is a. What is a power generator. Okay. And green hydrogen biggest raw material is what power. Green power. Right.
Unidentified Participant
Got it.
Salim Suleman Yahoo
So naturally, if KPI has the biggest raw material for the hydrogen, automatically KPI will play a role. But at present I will not disclose anything.
Unidentified Participant
Got it. Okay. Thank you. Appreciate it.
Operator
Thank you. The next question is from the line of Samrat Shah. Who is an individual investor. Please go ahead.
Unidentified Participant
Good morning sir. Thank you for the opportunity. First of all I would like to congratulate the entire team, especially Farooq Bai and Saleem sir, for giving such a robust quarter. I’ve been an investor of the group since the last three and a half years now and have immense faith in the group. I have a couple of questions. Firstly regarding the milestone billing which was talked about. I wanted to know for the big orders like the Kavda and Coal India project what kind of milestones have been completed and when would the billing be accounted for. Like how much has been accounted already and what percentage would be accounted for in the coming quarters.
Salim Suleman Yahoo
Which we have taken. Okay. Third quarter there is no billing done in Coal India. We will be starting billing from the fourth quarter onwards for the CPV Coal India project.
Unidentified Participant
Okay. And regarding the Aditya Birla project, sir.
Salim Suleman Yahoo
They are being, you know executed according to the milestone that is set up. And we have been doing billing. Whatever completion of work we do billing, various milestones are there. So according to that milestone we are doing the billing.
Unidentified Participant
So on a rough basis, approximate basis, the Kavada project is of 900 crore. Coal India is of 13, 300 and 450 crore. If you add up it comes to around 2000. Yeah.
Salim Suleman Yahoo
900 crore you are talking about is the IPP project. That is my own project.
Unidentified Participant
Yes, exactly. Exactly.
Salim Suleman Yahoo
That is my capex. I will not do the billing for that. Okay. Now as I told you, yeah. Coal India again, I mean it is an EDC contract. So we are doing billing. It’s spread over more than one and a half years. So your billing will be also spread over those periods. So I cannot disclose the exact how much billing we have done because I will object on that, how much billings and all. So no details.
Unidentified Participant
Right. So I just wanted. Yeah. Okay. So I just wanted to have a rough idea of the revenue figures in the coming quarter and the year. That’s why I was.
Salim Suleman Yahoo
We have given, you know, we just spoke in the beginning that you know. 60.
Unidentified Participant
Correct. The 50. 60%. Yeah, yeah, yeah.
Salim Suleman Yahoo
We will. Minimum is 60. Will surely surpass.
Unidentified Participant
Yeah. And one last question, sir. The Land bank which you have is around 4,000 acres. I would like to know what is your target Land bank in the coming say two years.
Salim Suleman Yahoo
That my target depends upon my target of the orders that I have. Okay. So we keep on adding Land bank. You know, Land bank is. Acquisition of Land bank is a real time process. We keep on adding to that. So it depends upon how much orders I have, and accordingly, we plan the land.
Unidentified Participant
Right, sir. And one.
Unidentified Participant
Asked a personal request. Whenever Parubai is free, I would like to fly from Chennai and meet him. Because of creating immense wealth for me and my family. So just from your end, if you could arrange this. Yeah. Thank you.
Salim Suleman Yahoo
Surely. I’ll surely pass on the message. And I’ll request him also from my side. Yeah.
Unidentified Participant
Right. Yeah. Thank.
Salim Suleman Yahoo
And doctor.
Operator
Thank you. The next question is from the line of Pawan from Frieden. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. So IPP capacity went up from 140 megawatt in Q3FY24 to 170 megawatt in Q3FY20. But the power generation went up only from 5.7 crore units to 6.1 crore units. Which is like a 7% growth versus 21% growth in the IPP capacity. What is the reason for the difference in the growth rates?
Salim Suleman Yahoo
See. See. When we set up an ITP project for example, if the quarter three immediately on the first day of the quarter four starting that you can say that you know, first of October.
Unidentified Participant
Megawatt has been live from Q1 FY25.
Salim Suleman Yahoo
Yes. Yes. Your revenue generation depends upon the period how much period that plant was energized. For example, if a plant is energized for from December so automatically that capacity will get added. But the generation will not get added because it gets energized on December. So somebody from October. So it’s a linear calculation that has used to be.
Unidentified Participant
No, what I mean to say is that the 171megawatt has been live from June quarter end at least. So for the entire.
Salim Suleman Yahoo
It was like from this was not live from June quarter. It was live from on September it was live. If you say that earlier one previous quarter, whatever capacity we said that was live on the last day of that. So it can be started from earlier also it can be Starting on September.
Unidentified Participant
171 megawatt has been live for the full of Q3FY25. And similarly Q3FY24. At least 137 megawatt has been live fully full quarter. Okay. If not 141.
Salim Suleman Yahoo
Yes.
Unidentified Participant
So you know there is a growth in capacity by 21.21.27. But the unit generation grew only 7%. What is the reason for the fall in the production efficiency?
Salim Suleman Yahoo
That’s what I’m saying. No, sir. Sir. 1 130. You are saying that previous quarter 131 was live. So 131 was already live for the entire in my plant which is generated the addition capacity may have started in the month of December itself. So there is no addition to that unit because it has started in December. It indeed it was not there in October or November. So it depends upon.
Unidentified Participant
The quarterly presentations that you have shared.
Salim Suleman Yahoo
Yeah.
Unidentified Participant
From the quarterly presentations that you have shared, 171 microwatt has been live as of at least June 2024. End.
Salim Suleman Yahoo
So if you read from. Let me explain you. Capacity, IP installed capacity till January 15. We have mentioned in IPP presentation. The presentation that we have shared right this quarter. So it is still. That is as on that date it is 171. But it’s not that that 171 started from the first day of October. So that much.
Unidentified Participant
Q1 FY25 presentation which is as on June 20, the 30th of June 2024 end as on that date itself, 171 megawatt has been live. So for the full quarter the 171 megawatt has been live.
Salim Suleman Yahoo
Right. So. But, but you know see plant gets light and then also there are factors like you know, your generation depends upon availability of grade and everything. So all those factors also take into consideration.
Unidentified Participant
Yes sir, just trying to understand what are those factors.
Salim Suleman Yahoo
See, that’s what I’m saying. The growth cannot be linked to the entire. You know, the new plants, when they add the capacity, you cannot until unless at least I think six to eight months or one year. You understand that. You know that the plant capacity. Because there are lot of things which needs to be corrected and everything. And the plant generation again is taken into consideration. The grid availability is taken into consideration. So there will be a growth. But it’s not that it will be very adjacent or proportional to the growth of the capacity in the initial phase.
Unidentified Participant
Got it. Sir.
Salim Suleman Yahoo
Can be your factors, can be your grid availability factors, can be your seasonality factors, can be your, you know, offtakers also. So all the factors have been taken.
Unidentified Participant
Sir, my question was because the 14 seems to be a large shop. That’s the question. But I understand. So the second question is Coal India order is of 300 megawatt ac, right? How much would it be in DC?
Salim Suleman Yahoo
DC coal India would be around. Yes. 400 plus will be the DCI. Yeah.
Unidentified Participant
So 30% will be. The 1.3 is a conversion factor.
Salim Suleman Yahoo
One is to. Yeah, one is to 1.
Unidentified Participant
3. Okay. Does the entire 100% of the order book has PPA signed.
Salim Suleman Yahoo
EPA? Yes, the PPP are signed for my IPP. IPP project. PPs are already signed.
Unidentified Participant
What about the CPP project? Sir, are you aware whether all the projects are signed.
Salim Suleman Yahoo
CPP project? I do the EPC. So the PPAs are signed. For example, Coal India has signed PPA with GNL. And after that only they have given us the order. So all CPP projects PPs are signed and after that only they give us the order.
Unidentified Participant
The last question from me. What are the module prices per watt right now that you are procuring approximately.
Salim Suleman Yahoo
The pricing is a very you know what we say confidential information from I can tell you buy from tier 1 like worry MV we purchase but pricing is something that you and my supplier will not allow me to disclose this pricing in the public.
Unidentified Participant
Okay, so you can tell us whether it is about 14 cents per water less than 14 cents per watt.
Salim Suleman Yahoo
No, no such as A different difference is we have long term relationship.
Unidentified Participant
On an average.
Salim Suleman Yahoo
These I tell you and whatever the model prices in the market are doing the same prices they will offer. But there are a lot of things which you play into. You know the quantity that we give you know the time we also take into consideration timeline by when they will be giving us. All the factors are taken into consideration for the model prices. So exact prices I will not be able to disclose in this public.
Unidentified Participant
Thank you. No other questions from Mike.
Salim Suleman Yahoo
Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen. In the interest of time we will take that as the last question. I would now like to hand the conference over to the management for closing comments.
Siddharth Thakur
Thank you everyone. Now I would like to thank all the investors and all the leaders who are part of this meeting. I was bringing a very fruitful meeting. We have answered all the key questions and we appreciate your trust and in our growth and in the investment that you made with us. And we’ll continue to deliver these and strong returns going in the next quarter as well and until the next time this year. Signing off from KPI Management. Thank you.
Alok Das
Thank you. Thank you. Thank you all..
Operator
On behalf of KPI Green Energy limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.