NLC India Ltd (NLCINDIA) Q3 FY23 Earnings Concall Transcript

NLC India Ltd (NSE: NLCINDIA) Q3 FY23 Earnings Concall dated Feb. 17, 2023

Corporate Participants:

M. Prasanna Kumar — Chairman and Managing Director

Mohan Reddy — Director, Projects and Planning

Suresh Chandra Suman — Director, Mines

Mukesh Agrawal — Executive Director, Finance

Analysts:

Anshuman Ashit — ICICI Securities

Mohit Kumar — DAM Capital — Analyst

Rahul Modi — ICICI Securities — Analyst

Ashwani Sharma — ICICI Securities — Analyst

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Vikas Jain — ONGC — Analyst

Rajesh Majumdar — B&K Securities — Analyst

Jitendra Sriram — Baroda BNP Paribas Mutual Fund — Analyst

Nikhil Abhyankar — DAM Capital — Analyst

Anupam Goswami — BOB Capital — Analyst

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Jitendra — KJN — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome the NLC India Limited Q3 FY ’23 Post-Results Conference Call, hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Anshuman Ashit from ICICI Securities. Thank you. Over to you, sir.

Anshuman Ashit — ICICI Securities

Thank you, -. Good day, everyone. On behalf of ICICI Securities. I would like to welcome you all to the Q3 FY23 post-results conference call of NLC India Limited. For today’s call, we are pleased to have the presence of Mr. M. Prasanna Kumar, Chairman and Managing Director of LLC India Limited; Shri Prasanna Kumar Motupalli is the gold medalist in mechanical engineering from Andhra Nagarjuna University. He also holds in operations management, marketing management, financial management and human resources management. Also, he is a fellow member of Institute of Engineers, he is a topper of Energy Auditor Examination of Bureau of Energy Efficiency, Government of India and also Certified Level-D exam holder of International Project Management Association. Prior to assuming charge as CMD of NLC India Limited, he was the Managing Director of Gujarat State Electricity Corporation Limited. Prior to joining GSECL, he was an Executive Director heading the Corporate Fuel Management NTPC. He was also — he has also held directorship and Coal India NTPC Urja Private Limited, MahaGujarat Collieries Limited. He was the Chairperson of the Western Region Power Committee for the year 2021-’22. Shri Prasanna Kumar began his career as Executive Trainee with NTPC in the year 1988 and has an illustris spanning over 34 years in the power sector and coal. CMD sir is accompanied by Mr. Mohan Reddy, Director, Planning and project, Director HR Additional Charge, Power Additional Charge; Mr. Suresh Chandra Suman Director Minings and Director Finance Additional Charge; Ms. Ritu Sharma, Director, EPAM; and Mr. Mukesh Agarwal, Executive Director, Finance.

The call will begin with brief remarks by the management, after which we will open the lines for the Q&A session. I would now like to hand over the line to CMD, sir, for his opening tomorrow. Thank you and over to you, sir.

M. Prasanna Kumar — Chairman and Managing Director

Thank you very much, Mr. Anshuman, for hosting this investor call. And thank you for the nice introduction. I would like to share this as an opportunity to interact with NLP IL stakeholders. And to reply to their queries under their financial results for the quarter and nine months ended 31st December 2022. I am Prasanna Kumar Motupalli, Chairman and Managing Director of NLC India Limited has assumed charge on 12th January 2023. Along with Reddy, Director Projects and Planning also holding additional charge of Director Power and Director HR.

Mohan Reddy — Director, Projects and Planning

Yeah, good afternoon.

M. Prasanna Kumar — Chairman and Managing Director

Suresh Chandra Suman, Director Mines, also holding additional charge of Director, Finance.

Suresh Chandra Suman — Director, Mines

Good day to everyone.

M. Prasanna Kumar — Chairman and Managing Director

Ms. Ritu Sharma, Director, DIPAM. And Shri. Mukesh Agarwal Executive Director, Finance and senior management are also joining this call from Delhi. I welcome you all to this conference call. I would like to give a quick brief on some of the performance highlights of NLC India Limited for the quarter and nine months ended 31st December 2022. The coal production during the nine months ended 31/12/2022 is 75.52 lakh metric tonne, against 40.83 lakh metric tonne in the corresponding period of the previous year registering a growth of 84.96%. The above coal production is highest-ever in NLCIL history.

Lignite production during the nine months ended 31st of December 2022 is 172.09 lakh metric tonne against 165.92 lakh metric tonne in the corresponding period of the previous year, registering a growth of 3.72%. Standalone thermal power generation during the nine months ended 31st December 2022 is 16.608 BU against 16.865 BU for the corresponding period of the previous year, a slight decline of 1.52%. NLCIL thermal average PLF is 69.13% up to December ’22 against all-India average of 63.23%. NLCIL thermal average PLF is 72.28% upto December ’22 against the corresponding period of 73.11%.

Renewable power generation during the nine months ended 31st December 2022 is 1,629.83 MU against 1,619.33 MU in the corresponding period of previous year with a marginal increase of 0.65%. The collection efficiency during the current nine months period stands at 66.85%. Consolidated power export during the nine months ended 31st December 2022 is 20.07834 billion units as against 19.24795 billion units in the corresponding period of the previous year, registering a growth of around 4.31%. MOP wide order dated 15 February 2023 has approved allocation of 400 megawatt power from — dharma Power Plant to be state of Orissa and 15% LMCL share of unallocated power 136.32 megawatts from NGPPL to APDCL Government of Assam.

Coming to the key highlights of the financial performance. Standalone, the revenue from operations for the nine months period ending 31st December 2022 is INR8,659 crores as against to INR7,277 crores during the corresponding period of the previous year, registering a growth of around 90%, respectively. The total income of the company for the nine months ended 31st December 2022 is INR9,161 crores as against INR7,887 crores in the corresponding period of the previous year, registering a growth of 16%.

Profit for the period for the nine months ended the 31/12/2022 is INR474 crores as against INR797 crores in the corresponding period of the previous year. The profit-after-tax for the period has impacted mainly due to the accounting of the CERC orders received during the period, wherein CERC has set aside review of O&M expenses for the year 2014-’19 had similar issue for earlier tariff period is sub-judice before APTEL and also while issuing tariff orders for 2019-’24, CERC has not considered certain items including capital additions and advised to consider actual at the time of filing of truing up petition by NLCIL. Okay, thank you.

Questions and Answers:

Operator

[Operator Instructions] The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

Mohit Kumar — DAM Capital — Analyst

Yes, good afternoon, sir, and congratulations on taking over as CMD. So I wish you all the best for the role. My first question is, what was the one-off in the result? Is any tax impact of the same in the sense I believe that there is roughly INR8 billion, which pertains to prior periods. Is that number correct?

M. Prasanna Kumar — Chairman and Managing Director

Yes, correct.

Mohit Kumar — DAM Capital — Analyst

INR800 crore.

M. Prasanna Kumar — Chairman and Managing Director

INR800 crore. Correct.

Mohit Kumar — DAM Capital — Analyst

Is there any other one-offs, sir, apart from that?

Mukesh Agrawal — Executive Director, Finance

Yes. If we see, actually, if you analyze our Q3 and nine months result, you will find as the CMD sir has told our operations are stable. They were rather than more than the previous year, it is better than the previous year performance in the Q3 and the nine-months. During the period the accounting of INR749 crore has happened, which you had mentioned about the prior period of the lignite price, for which now regulatory orders have come and they had kept aside saying that, it will be taken as per the — in-line with the ’14 order which is sub-judice before them.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Secondly, sir, on the status of the tender for Talabira II, I think it is pending for a long-time. I think the bid submission happened in November. What is delaying it, sir? When do you expect it to finalize? And have you identified the L1 bidder?

M. Prasanna Kumar — Chairman and Managing Director

No problem, at present, the technical bid of the tender was opened. And as you know, there were two parties. We are doing the technical evaluation and we are targeting to complete this technical evaluation in next one month period. And then we will be opening the bid and after reverse action the L1 will be decided. In fact, we are waiting for some position of some land at least before we finalize the L1 and award the contract. That activity is in full swing and we are depositing the required amount to state government today itself. So that process is on and once some portion of land taken into position, then this will be — L1 will be determined, and the contract will be placed immediately.

And major development is yesterday the Government of India, Ministry of Power has allocated 400 megawattt power to the State of Orissa for which we are going to sign the PPA at the earliest. And with this, the entire 2,400 megawatt PPA tieup is complete, 2000 megawatt already signed and 400 megawatt we are going to sign shortly.

Mohit Kumar — DAM Capital — Analyst

So one can expect the tendering to happen by March 2023, is that a fair assumption, sir?

M. Prasanna Kumar — Chairman and Managing Director

Yes, yes. I think before that, it will be finalized and awarded.

Mohit Kumar — DAM Capital — Analyst

And sir, we are also working on Neyveli 1.3 gigawatt tender, has the bid submission happened technical bids? And when are you looking to open the financial bids?

Mukesh Agrawal — Executive Director, Finance

I fully — I’m giving to our Director BNP.

M. Prasanna Kumar — Chairman and Managing Director

This is here speaking about the 260 megawatts of Neyveli tendering process on recently board meeting somes relaxations have taken place regarding commercial bids as well as subscriptions, this tender is in process. Because it’s Neyveli lignite base the bidders also facing some challenges. In the meantime, hopefully they’ll overcome it and participation will be there.

Mohan Reddy — Director, Projects and Planning

Actually, this is going to be the first supercritical 660 megawatt lignite based thermal power in the country and some changes in the terms and conditions in line with the industry practice will be happening. So once that is completed, I think we’ll go ahead and we’ll go for the reward.

Mohit Kumar — DAM Capital — Analyst

Understood, sir. Thank you and all the best, sir. Thank you.

Operator

Thank you. The next question is from the line of Rahul Modi from Nippon India Asset Management. Please go ahead.

Rahul Modi — ICICI Securities — Analyst

Thank you for the opportunity. Sir, couple of questions…

Operator

Sorry to interrupt, sir, the line for you is very low in volume. If you could please speak closer.

Rahul Modi — ICICI Securities — Analyst

Is it better now?

Operator

Yes, this is much better.

Rahul Modi — ICICI Securities — Analyst

Okay. Thank you. So sir, just couple of questions that I had. Firstly, with regard to the under-recovery that we are clocking in right now for mine and for the thermal plants, if you could share that number? Secondly, directionally on the plants where we are not able to achieve the mandated normative thresholds. How are you going about it to achieve that, because it’s been a long-time? So, if you can elaborate on the measures that we’re taking, because a significant amount of earnings is lost there. And thirdly, sir, how is Ghatampur progressing? As I believe recently the Honorable Minister had also visited. And do you see any fast-tracking of progress? Thank you.

M. Prasanna Kumar — Chairman and Managing Director

Okay. I think the first question is regarding annual fixed cost under-recovery for the quarter as well as the financial year. For the quarter three, the annual fixed cost under-recovery is INR152.07 crores. Out of that from TPS 2 it is INR30.14 crores under-recovery. And TPS 2, Stage 2 INR46.27 crores under-recovery and NLC TPS 2 expansion INR88.78 crores under-recovery. But as this annual fixed cost under-recovery on annualized basis and the performance of these plant is consistently good. So we are hoping around at the end of the financial year, this will be…

Mukesh Agrawal — Executive Director, Finance

Here I would like to add one thing sir, that the under-recovery for the nine months period has reduced, last year up to nine months under-recovery was INR445.75 crores, which has reduced to INR341.78 crores. Under-recovery in the quarter was due to some restricted availability of the lignite. So, by the end of March, we will recover it, we will improve better.

M. Prasanna Kumar — Chairman and Managing Director

I think the lignite production now has improved and as it is an annualized basis, we are expecting that this under-recovery will reduce at end of the financial year. That is the first question. And regarding improvement in the under-recovery, we are all taking all the efforts to ensure the units are available for generation and fuel is available for generation to reduce the annual fixed cost charges to reduce the under-recovery of annual fixed cost charges. Coming to the Ghatampur, I think now this is now a prestigious project and we — it is long pending and we have to complete this project at the earliest and honorable secretary coal visited plant in the month of January and three days back, honorable Cabinet Miniter for Coal Shri. Pralhad Joshiji visited the plant and review the status.

And we are targeting to complete the commercial operation of all the three units in this calendar year. We want to complete the COD by 31st July, COD of Unit number I by 31st July, Unit number II by 31st October, and Unit number III by 31st December. Of course, there are some challenges in particularly, the balance of plant package. We are addressing that issue and most of the point we already addressed. And today also Secretary Coal took review and we are having clear cut way forward how to achieve this COD by 31st July for the first Unit number I, and all the three units by 30th December 2023. And simply there is also order from Ministry of Power with allocation of some share of power to Assam also, and we are going to sign PPA with them the process will be completed.

Rahul Modi — ICICI Securities — Analyst

Sure. Sir, this is very helpful. Sir, one more question that I had on the TPS 2 expansion under-recovery, any permanent solution on a technical standpoint are we looking at so that going forward we are at least directionally moving towards achieving that path? If you could elaborate a little more as to the steps that we are thinking of taking?

M. Prasanna Kumar — Chairman and Managing Director

Yes, exactly TPS 2 this is a CFBC boiler, and they’re having problem of reliability since the beginning. So our team in interaction with different power situations, they formulated some action plan and we already implemented that action plan in one of the units. And that unit is now operating since last 45 days without any problem. So, we are going to replicate same in the other unit also. And with completion of these modifications, the reliability issue of these units will be addressed and the availability and generation from these units will be improved to a great extent. Also, on long-term basis, we are having some modification of replacing some boiler tube with higher grade material, and that also we are procuring then in the long term that modification also will help in maintaining the reliability and availability of these units to the required level. And in fact, I just want to add, we are consulting Ms. [indecipherable], also the original technology provider of CFBC boiler to BHEL for root cause analysis of the FBC failures. This is for long term, but in the short term, whatever modifications were required, those modifications are already carried out and the unit has now become operational in sustained manner.

Rahul Modi — ICICI Securities — Analyst

Right. Sir, if you could also just — moving on to the next point. This is very helpful, sir, any thoughts on the renewable capacity going ahead? You had given our a press release with regard to some MOUs with Orissa, require 1,400 megawatt under construction. So what is that we are targeting over the next couple of years to add capacity?

M. Prasanna Kumar — Chairman and Managing Director

See, as on date we are having around 1400 megawatt. We are having aggressive plans to add the capacity. Already we are having — we won the under CPSU scheme we won 500 megawatt, those 500 megawatt tendering process is on, and once that is completed, we’ll be starting the 500 megawatt immediately. In addition to that, we are having — we signed an MOU with the Government of Assam for capacity addition of 1,000 megawatt on cost plus basis. And we are identifying the lands in the Assam state so that we can go ahead with the installation of solar power plant. And in this context, I met Honorable Chief Minister of Assam at Lucknow and he assured full support in allocation of good lands to NLCIL so that the project can be executed at the earliest.

So, in a similar way, we are in talks with Government of Rajasthan, Government of Orissa for the establishing solar power projects, and we are aiming to add substantial capacity in next two, three years period.

Rahul Modi — ICICI Securities — Analyst

Sir, what is the target IRRs, as you mentioned, it’s more or less cost plus basis. What would be the IRRs that you’re looking at ballpark?

M. Prasanna Kumar — Chairman and Managing Director

The IRR instandard we look at around 12%. So, I think, that is our practice.

Rahul Modi — ICICI Securities — Analyst

Okay. And sir, just last question from my side, sir, could you give a little more details out of the 7.5 million tonnes that you’ve done in coal production, which are the segmented sales and what has been the auction price for the e-auction that we’ve done, how much quantity and what is the price at which we’ve clocked? Thank you.

M. Prasanna Kumar — Chairman and Managing Director

Okay. The target — actually, our target was 8 million tonnes initially that we surpass, and now we are targeting for 10.5 million to 11 million metric tonnes in the current financial year. Out of the total supply, the quantity through — the total quantity is 75.89 out of that 15.92 that was coal sale to our own plant NTPL and 14.25 under coal swapping agreement with NTPC. That 14.25 is supplied and coal sale to NTPC to other than the coal swapping agreement, we are supplying this to NTPC plants also. So that is 41.86. This facilitated NTPC to generate more and avoid the losses on account of coal shortage. This to around 21% to NTPL, around 19% to NTPC through swapping arrangement and around 55% to NTPC coal sale through MOU and e-auction is around 5%. So if you translate this 5%, it is 3.6 lakh metric tonnes. And you are talking about the price, the coal sale to NTPL 782.33, coal sale to NTPC through swapping it is INR827, coal sale to NTPC MOU route it is INR952 and coal sale through e-auction it is INR4,948.

And the auction rates are varying from INR2,473 to INR8,135 in the month of April. In the last e-auction it was INR2,473 to INR2,513.

Rahul Modi — ICICI Securities — Analyst

Sir, when was this last auction?

M. Prasanna Kumar — Chairman and Managing Director

Last auction was done in the month of February.

Rahul Modi — ICICI Securities — Analyst

Okay. Thank you very much, sir. And all the best.

Operator

Thank you. We have the next question from the line of Ashwani Sharma from ICICI Securities. Please go ahead.

Ashwani Sharma — ICICI Securities — Analyst

Yeah, thank you. Thank you for the opportunity. Sir, I have two questions. First is on your methanol project. So what is the capex in this project, sir? And also if you could comment on the commercial angle of the project?

M. Prasanna Kumar — Chairman and Managing Director

Methanol project capex is INR4,393 crores. You’re asking about lignite methanol project?

Ashwani Sharma — ICICI Securities — Analyst

Yes.

M. Prasanna Kumar — Chairman and Managing Director

It’s a 0.40 MTPA capacity plant and the estimated project cost is INR4,394 crores. And for this, the lignite requirement is around 2.26 million tonnes per annum. And it is around — project is 46 months duration project. And this project is expected anywhere in the year ’26-’27.

Ashwani Sharma — ICICI Securities — Analyst

And your comments on the commercial aspects of the project, sir?

M. Prasanna Kumar — Chairman and Managing Director

Commercial production March ’27.

Ashwani Sharma — ICICI Securities — Analyst

No, no. I mean, end game here. in terms of revenue, in terms of profitability.

M. Prasanna Kumar — Chairman and Managing Director

Okay. Okay. Actually, the project cost is INR4,394 crores as I told, and this will be debt equity of 80-20 and the project schedule is around 42 months and the cost of production is around INR25,588. per metric tonne. So selling price for seven years average is around INR30,848, per metric tonne. So IRR for this project is 8.28% to 8.73%, and IRR equity is 11.83% to 11.95%. And the payback period is 8.38 years. And the profit before and after taxes are approximately INR189 crores and INR120 crores, approximately.

Ashwani Sharma — ICICI Securities — Analyst

Okay. Sir, my second question is again on the TPS 2 second expansion, what is the status of this project, sir, in terms of tendering?

M. Prasanna Kumar — Chairman and Managing Director

TPS 2 second expansion, we already tendered, but this being a first super critical 660 megawatt power station in the country, there were some clarifications from the parties as well as some requirements in line with the current industrial practice. So we are just doing that modification. And the estimated project cost is around INR11,189 crores. So we are doing some changes in the terms and conditions and specifications in line with the current industrial practice to encourage more participation. So that recently we uploaded and after that we will open that and award that at the earliest.

Ashwani Sharma — ICICI Securities — Analyst

So any tentative timeline for awarding this project?

M. Prasanna Kumar — Chairman and Managing Director

I think, ’24. I think in the current financial year — next financial year that will be — that can be completed.

Ashwani Sharma — ICICI Securities — Analyst

So October ’24. Okay.

M. Prasanna Kumar — Chairman and Managing Director

October ’23.

Ashwani Sharma — ICICI Securities — Analyst

October ’23, sorry. Okay, sir, thanks. Those were more questions. Thank you very much.

M. Prasanna Kumar — Chairman and Managing Director

Okay. Thank you.

Operator

We have the next question from the line of Akhilesh Bhandari from ICICI Prudential Asset Management Company. Please go ahead.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Yeah. Good afternoon, sir, and thank you for taking my question. Sir, firstly on the Talabira mine. So as per the mining plan, what is the expected output in FY ’24 and ’25 on the mine?

Mukesh Agrawal — Executive Director, Finance

Yeah. In ’24-’25, actually ’22-’23 it was 8 million tonne, we are going to land at 10 million tonne. ’23-’24 it is 12 million tonne, and ’24-’25 16 million tonne.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Extremely. Right. Okay. And so what is the cost of production broadly?

Mukesh Agrawal — Executive Director, Finance

Cost of production is approximately 680 or 700 in between that figure.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Sir, as of 31st December, what is the receivable level at the standalone and console?

Mukesh Agrawal — Executive Director, Finance

Pardon.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

The receivable level, the standalone and console receivable level?

Mukesh Agrawal — Executive Director, Finance

Standalone basis the receivables is INR2,326 crore. The standalone basis as on December is some INR6,493 crore against the previous year level of INR4,580 crore.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Okay.

Mukesh Agrawal — Executive Director, Finance

INR6,493 crore against the INR4,580 crore. The reason for increase is basically on account of the two issues are there, because everybody knows now with the Ministry of Power has brought out a good guideline for the liquidation of dues. So Tangedco and other discoms has opted for liquidation of INR724 crore, which I had explained in the last investor meet also. So that has gone to the installment plan. And second is, we had made the accounted, Vivad Se Vishwas Scheme and we had got a wage revision order from the CRC for all these put together around INR1,000 crore billing we had done in the month of December, which has become due on 16th February. So the debtors level has increased in the quarter as of December when we are comparing from the previous year.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Okay. So the unbuild amount was INR1,000 crore?

Mukesh Agrawal — Executive Director, Finance

Yeah, billed which has been…

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Billed but due.

Mukesh Agrawal — Executive Director, Finance

Yeah.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

And at the consolidated level?

M. Prasanna Kumar — Chairman and Managing Director

Consolidated level right now, Mukesh, will provide you later on.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

So, sir this you mentioned that the correction efficiency was around 68% or 66%, if I’m not wrong, you mentioned that number earlier. So this INR1,000 crore which has come due to wage revision and Vivad Se Vishwas that is the only reason why the collection efficiency is down or there is another reason as well?

Mukesh Agrawal — Executive Director, Finance

There is one more reason is there, we had got a regulatory order for the lignite price in the month of March. So against that, as the order was against us, Tangedco has two more rejected from INR1,200 crore on account of this, on the practice that the order is against to, you should pay the money though we had gone for the review petition, which is under consideration. So that amount withheld is also appearing into the debtor. So that has brought down the official collection efficiency, little down.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

And sir, how do we plan on proceeding against this?

Mukesh Agrawal — Executive Director, Finance

Pardon me.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

What is — how do we plan on proceeding? You mentioned that it’s — you have filed a review petition, so what is the timeline?

Mukesh Agrawal — Executive Director, Finance

Actually, this lignite issue has a getting effect of 2009-14 orders of the CERC, which is in the APTEL. So CERC has taken a view of being sub-judice order, we will not take any further decision, let the APTEL decision should come. We are trying to get early raising posting in the APTEL. So I cannot fix any timeline for the liquidation of this because being a regulatory issues.

M. Prasanna Kumar — Chairman and Managing Director

But we are trying our level best to pursue that and complete that process at the earliest because we’re having patent for both the periods.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Okay. And sir, there was a reversal of regulatory income of INR749 crores in this quarter. So any other such hit, which can come in the subsequent quarters because of any pending orders, how should we consider this?

M. Prasanna Kumar — Chairman and Managing Director

This is a one-time order. Incidentally, three, four orders has come together in the same quarter, which have resulted this and this is the one-time effect is there. So I won’t think that further order will be negative and such type of impact. I am not envisaging further.

Akhilesh Bhandari — ICICI Prudential AMC — Analyst

Got it. All right, thank you. I’ll get back in the queue.

M. Prasanna Kumar — Chairman and Managing Director

Okay, thank you.

Operator

Thank you. The next question is from the line of Vikas Jain from ONGC. Please go ahead.

Vikas Jain — ONGC — Analyst

Yeah, one question is how much is the tariff realized per unit of thermal power? And is it the same that was in the year 2014 to 2019 block or there is some hike in that power realization?

M. Prasanna Kumar — Chairman and Managing Director

The voice is not clear, I think you can repeat the question.

Vikas Jain — ONGC — Analyst

Okay. What I’m asking is, what is the power tariff realized per unit of power? Is it the same that was in 2014 to ’19 dated or after 2019 there is some hike in the realization, the power that you sell?

Mohan Reddy — Director, Projects and Planning

Power tariff actually in some of the plants ASP has come down because some non-admission of the addition capitalization, energy charges for the TPS 2 — capacity charges for the TPS 2 stage one is 0.71, stage two is 0.74. TPS 1…

M. Prasanna Kumar — Chairman and Managing Director

Whether there is any change in the tariff structure between.

Mohan Reddy — Director, Projects and Planning

Tariff structure is same AFC and the energy charges.

M. Prasanna Kumar — Chairman and Managing Director

And what is the actual net value?

Mohan Reddy — Director, Projects and Planning

ASP has some part it has reduced, because of the plant are getting old so ASP has reduced in comparison to earlier period.

Vikas Jain — ONGC — Analyst

Okay. One more question because I’m not an expert your 30-page results [indecipherable] for a normal person, this regulatory INR1,641 crore how much of it is one-off and how much of it is recurring?

M. Prasanna Kumar — Chairman and Managing Director

See, our average thermal tariff is INR2.39 and out of that INR1.38 is on account of fixed charges and balance is on account of variable charges.

Vikas Jain — ONGC — Analyst

No, that’s okay. My second question is, there is a charge of INR1,641 crore on account of [Technical Issues]. So out of INR1,641 crore how much is one-off and how much is recurring?

Mukesh Agrawal — Executive Director, Finance

I will tell you, there is a regulatory movement of INR1,641 crore in the quarter, which basically consists of four orders are there, there is one order of the wage region. This wage order is regarding in 2016 and 2017 when the wage revision of executive and non-executive has taken place, CH [Phonetic] salary has taken place and the gratuity limit has increased from INR10 lakh to INR20 lakhs. So when the CERC has fixed our O&M charges in 2014, at that time these were not factored in the O&M cost. So these are the additional costs to all the executives of the company. And we have also filed a petition before the CERC for compensation of this. So, this has been allowed by the CERC agianst our claim of INR783 crore they had allowed from INR660 crore leaving an impact of INR112 crore. So this is a one-time impact. There is no recurring impact is going to come to the company.

There is similarly two order for the tariff projection for the period of ’19-’24 for the TPS 2 extension and TPS 1 extension where the regulatory authority has not accepted my projected capital addition with the ground that this expenditure will be entertained at the time of proving up of the expenditure. But as we are very well known non-admission of capital charges has affected the tariff in threeway. One is the return on equity, second is the depreciation, and third is interest on the loan.

So this order is also one time, but its effect for the capitalization we will reap in the year 2024-’25 when the truing up of the O&M expenses will come. So it’ll give some additional amount. It is not going to be a negative. So only the income which is likely to right now ’19-’24 will have been deferred for some period. O&M already I had experienced some INR739 crores it is pertaining to 2014-’19 and it’s decision is dependent on the action, which will — when it will come, it’ll definitely is going to give the positive impact to the company. So all these orders are off one time nature.

Vikas Jain — ONGC — Analyst

Yeah, one thing that there is a disclaimer that because of problems in land acquisition and local aggitation you may not be — it might not be a growing concern, is this problem that serious?

M. Prasanna Kumar — Chairman and Managing Director

Actually for any mining company, land acquisition is very important to increase the production level. So the — although we acquired some land, that profession is still pending and there are some issues for the land acquisition. So we are taking up this issue with both state government as well as the district administration and we are trying to sort out that issue at the earliest. But still, there is a problematic and it is happening at very slow pace. So that’s why the disclaimer was given this may affect our production process.

Mohan Reddy — Director, Projects and Planning

Yeah, however, we could get some land recently and our production level also 10% to 15% got increase since the month of February. So what was the production level of January month, we means increased our production 15% higher.

Vikas Jain — ONGC — Analyst

Okay, fine. Now one request because it’s very difficult to decipher your…

Operator

Sorry, to interrupt sir, we ask that you return to the question queue for further questions.

Vikas Jain — ONGC — Analyst

Yeah, please have a document as to what it means in your results and balance sheet. That’s my request, not a question.

M. Prasanna Kumar — Chairman and Managing Director

Okay.

Operator

Thank you very much, sir. We have the next question from the line of Rajesh Majumdar from B&K Securities. Please go ahead.

Rajesh Majumdar — B&K Securities — Analyst

Yeah. Good evening, sir, and thanks for taking my call. So I had a couple of questions, one is on Ghatampur coal linkage, when is that likely to be opening? And in the interim, where will the coal linkage come from, from Ghatampur operations?

M. Prasanna Kumar — Chairman and Managing Director

Actually, Ghatampur, one city commission it requires two types of coal. One is the start-up coal for facilitating the commissioning of the units. That start up coal is already tied up and we will be getting that coal from Nathan Coal Limited [Phonetic] and for other units of Ghatampur also, the CLA already allocated the linkage from different subsidiaries of Coal India, and that is fully tied up. And our — the linked mine Pachwara South coal block, the production is expected from January ’24. So, from January ’24 onwards, we’ll be getting coal from Pachwara, but meanwhile, if there is some requirement is there, we will be sending our Talabira coal to Ghatampur. So, all three types of coals are already tied up and necessary actions for logistic are already taken. So the coal is not a problem for Ghatampur to run on sustained basis.

And for the unit number one, we got around 3.33 million metric tonnes from NCL and BCCL. And for other units we got around 0.66 million metric tonnes from NCL, CCL, MCL and BCCL. Total we got around 1 million metric tonne of coal as a commissioning coal.

Rajesh Majumdar — B&K Securities — Analyst

So do you envisage coal going from Talabira to Ghatampur at all or do you feel the coal linkage is sufficient right now for Ghatampur, all the three units to be operational?

M. Prasanna Kumar — Chairman and Managing Director

See, once our supply from Pachwara gets started, then there is no other alternative supply is required. But as on date, once we complete the commissioning coal, then at that point of time we may require some coal, but meanwhile we approach the Ministry of Coal also for giving this some bridge linkage from the nearby coal subsidiaries, and it is under consideration of Ministry of Coal. So once the commissioning coal is completed, then we will use bridge linkage coal, then we will use the Pachwara block coal. And meanwhile, if any shortfall is there at any point of time, then we will think of sending coal from Talabira mines to Ghatampur so that there will not be any generation loss on account of coal shortage.

Rajesh Majumdar — B&K Securities — Analyst

Right, sir. So my follow-up question would be your coal production that you envisage in FY ’25 from Talabira, you said it’s about 16 million tonnes. So what would be the breakup? Will it be similar to what it is in the nine months in like what you mentioned on NTPL, NTPC or will it be something different? Can you give the breakup of the 16 million envisaged?

M. Prasanna Kumar — Chairman and Managing Director

Our priority — the first priority is our NTPL. Second priority is giving to NTPC. And the third priority is going to e-auction for the supply of this coal. So in the same priority, whatever happened in the first nine months, in the same priority, we will be sending coal.

Rajesh Majumdar — B&K Securities — Analyst

NTPL cannot go up more than this, right? So NTPC can go up in proportion to NTPC requirements. Is that correct assumption?

M. Prasanna Kumar — Chairman and Managing Director

Come again, please?

Rajesh Majumdar — B&K Securities — Analyst

I’m saying NTPL has already taken the…

M. Prasanna Kumar — Chairman and Managing Director

NTPL, our requirement is around 5 million metric tonne.

Rajesh Majumdar — B&K Securities — Analyst

Right. Okay.

M. Prasanna Kumar — Chairman and Managing Director

Okay, thank you.

Operator

The next question is from the line of Rahul Modi from Nippon India Asset Management [Phonetic]. Please go ahead.

Rahul Modi — ICICI Securities — Analyst

Thank you for the opportunity once again, sir. Just a couple of things wanted to check with you. One is we’ve been having these regulatory orders, delays coming in, which has created a lot of changes in our P&L. Secondly, so when do you expect this to now get all cleared and restarting on a clean slate? And the second point is the debtor receivable trajectory was after what the Ministry of Power has done across the industry, we’ve seen a massive declining trend of receivables. Now when do we get on that path where despite the one-offs and other things, business comes back as usual? So that we are getting to — so instead of a 45-day, we can have a 60-day receivable days or 65. But whatever historical issues are there that gets sorted out? Directionally, when do you see things getting normalized and steps taking for that?

M. Prasanna Kumar — Chairman and Managing Director

Actually, the improvement already started. Recently, also, we received major payment from Tangedco and other states also we are pursuing for liquidating the dues at the earliest. So we are hopeful that in next — Mukeshji?

Mukesh Agrawal — Executive Director, Finance

Sir, apart from some historic issues which are there, we are getting all the current use regularly and we are trying to settle all these old cases as early as possible. I hope within the period of next couple of months, I will be able to settle all low.

M. Prasanna Kumar — Chairman and Managing Director

So in the current financial year, I think by first quarter of the financial year, we will be able to settle all the issues and move forward.

Rahul Modi — ICICI Securities — Analyst

Great, sir. Thank you.

M. Prasanna Kumar — Chairman and Managing Director

Thank you.

Operator

The next question is from the line of Jitendra Sriram from Baroda BNP Paribas Mutual Fund. Please go ahead.

Jitendra Sriram — Baroda BNP Paribas Mutual Fund — Analyst

Thanks for taking my question. I had two questions. One was on the — if you look at the segmental numbers, there is a little bit of a strain on the mining operations. What exactly do you need in the mining operations as a revision or a reset to bring it back to a normative level of profitability? And the second part was what is the current basis of how you are accounting for stuff like O&M expenses or whether it is tariff setting, given that a lot of your plants still don’t have explicit tariff orders yet awarded. So just to prevent some kind of a reversal like what happened now, what is the basis on which you’re providing for them?

M. Prasanna Kumar — Chairman and Managing Director

Coming to your first question regarding the strain on the mining in the segmental performance. This performance is mainly because of the reason which we already explained the land land requirement and the regulatory accounting regularity according of around INR210 crores for the 2014-’19 and INR116 crores with surcharge of INR94 crores. And the main reason is an unavailability of minable land and we already communicated the land possession has started, and our production performance has improved by almost 15% if you compare with January.

Operator

We already communicated the land possession has started endeavor. Production performance has improved it by almost 15%, if you compare it January. So we are confident that we can sort out all the issues and bring the production levels to required as said. And in the mining — coal mining also, we are improving our daily production. Yesterday, our Talabira project achieved all-time highest ever coal dispatch of around 48,000 metric tonne. So we are improving in both lignite and coal mining, and we will come back to normalcy at the earliest.

Jitendra Sriram — Baroda BNP Paribas Mutual Fund — Analyst

Okay, thanks. And the other part, sir, what is the basis of tariff setting and the basis of O&M escalations that you’re providing for now in the accounts, so that you don’t have the magnitude of reversals later?

M. Prasanna Kumar — Chairman and Managing Director

So this is in line with the CERC tariff order and the tariff regulation. Exactly in line with that we are providing, and we are making the accounts in line with that CERC tariff order only.

Mukesh Agrawal — Executive Director, Finance

Actually, presently, escalation is 3.5% as per the CERC secret regulation. And for the period of 2019-’24, we had already filed a tariff petition before the CERC, which is under consideration. So we believe, as per my tariff petition, we had — the petition is some INR2,000-plus per tonne, INR2,100 crores, INR2,200 crores, whereas we are billing at INR1,950 per tonne. So I don’t think there will be any surprise. When the order will come, it will be — lead to some incomes to the company.

Jitendra Sriram — Baroda BNP Paribas Mutual Fund — Analyst

Okay. And O&M escalation is about 3.5%. Is my understanding correct?

Mukesh Agrawal — Executive Director, Finance

That is exactly in line with the CERC regulation, and we are following same thing.

Jitendra Sriram — Baroda BNP Paribas Mutual Fund — Analyst

Perfect. Thanks a lot. That’s very helpful.

Mukesh Agrawal — Executive Director, Finance

Thank you.

Operator

Thank you. The next question is from the line of Nikhil Abhyankar from DAM Capital. Please go ahead.

Nikhil Abhyankar — DAM Capital — Analyst

Thanks for the opportunity, sir. Just a continuation from the earlier question. Sir, what is — do we expect ordering for Neyveli 1.3 gigawatt to happen in the H1 or will it be next year?

M. Prasanna Kumar — Chairman and Managing Director

Pardon? Please come again.

Nikhil Abhyankar — DAM Capital — Analyst

Will the ordering for Neyveli 1.3 gigawatts happen in the H1 FY ’24 or H2?

M. Prasanna Kumar — Chairman and Managing Director

I think it will go to H2. This being — you are talking about the 660-megawatt — 1,320 megawatt. Actually, this will be — we are expecting by around October ’23. There are mainly two reasons for that because this is the first time in the country this is happening and technologies are also limited. That’s why we are expecting it by October ’23. We’ll be completing it latest by October ’23.

Nikhil Abhyankar — DAM Capital — Analyst

By October ’23, okay. And sir, similar for coal gasification projects. So when do we expect the ordering? And are we expecting any viability gap funding for it?

M. Prasanna Kumar — Chairman and Managing Director

Actually, the tendering process is actively on and most of the critical activities have already been completed. Although our final commissioning is expected in the 31st March 2027, but at present, the tendering process, tender preparation and floating activities have been completed and March 20 — March 1st is the last date for the tender opening. So once we do that, then we will award that at the earliest. And the tender opening and bid valuation will be completed by July ’23 and the environment clearance by September ’23. And finally, award of plant is by ’24 and the commissioning by 2027.

Mukesh Agrawal — Executive Director, Finance

So far, viability gap funding is concerned. Actually, government of India has identified INR3,000 crores for five projects. So one of them is this Neyveli ignite gasification project. So we have been assured with INR600 crores of viability gap funding by Government of India.

Nikhil Abhyankar — DAM Capital — Analyst

Okay. And sir, is BHEL eligible for this tender?

M. Prasanna Kumar — Chairman and Managing Director

One more point I want to add in this one. We know this is being monitored by the Ministry of Coal as well as the highest majority of the country. So the activities they are keeping track of the activities and monitoring the award at the earliest and the composition of the project at the earliest. And BHEL is not as on — at present. So we don’t know by the tender completion, it may come. But at present, BHEL is not the part.

Mohan Reddy — Director, Projects and Planning

They have not shown any interest in participating this tender.

Nikhil Abhyankar — DAM Capital — Analyst

Okay. And just a final question, sir. Sir, what is the profit contribution for — from Talabira coal?

M. Prasanna Kumar — Chairman and Managing Director

One minute. INR247 crores in the quarter three.

Nikhil Abhyankar — DAM Capital — Analyst

And for the nine months?

Mukesh Agrawal — Executive Director, Finance

For nine months is INR481 crores.

Nikhil Abhyankar — DAM Capital — Analyst

INR481 crores. And INR247 crores for Q3?

Mukesh Agrawal — Executive Director, Finance

Yes. Okay, thank you. Okay, thank you.

Operator

Thank you. The next question is from the line of Anupam Goswami from BOB Capital. Please go ahead.

Anupam Goswami — BOB Capital — Analyst

Sir, can you mention the nine-month cash flow from operations you have that figure and what is the cash balance right now?

M. Prasanna Kumar — Chairman and Managing Director

Cash flow in nine months, just one minute.

Mukesh Agrawal — Executive Director, Finance

Cash flow in the nine months total is around INR9,000 crores is there from the realization from the source. And balance cash balance in December was around almost flat. It was some INR100 crore or INR50 crore was there. So we are not borrowing any working capital right now from last one month — one year. Temporarily basis INR200 crores or INR300 crores sometimes we are borrowing for seven days or 10 days. Fine, sir. Sir, if you can repeat your mining volume and units sold, I kind of missed the beginning, so that would be very helpful.

Operator

Mr. Goswami, I would request you to please repeat your question.

Anupam Goswami — BOB Capital — Analyst

Sir, if you can repeat your mining volume and units sold in the quarter?

Operator

Sorry, sir, the line for you is bad at the moment. We are not able to hear you clearly.

Anupam Goswami — BOB Capital — Analyst

Sir, I just wanted to know your mining volume and units sold for the quarter?

Mukesh Agrawal — Executive Director, Finance

The mining revenue up to quarter three is INR5,515 crores compared to INR4,786 crores in the previous financial year, nine months period. And the power revenue is INR7,081 crores in the current financial year of nine months. And correspondingly, it was INR6,418 crores in the year ’21-’22.

Anupam Goswami — BOB Capital — Analyst

Sir, your volume, please, sir?

M. Prasanna Kumar — Chairman and Managing Director

Our volume is coal 75.52 lakh metric tonne against 40.83 lakh metric tonne in the previous year, that is coal production. And in lignite production 172.09 lakh metric tonne in the current financial year, nine months, against 165.92 lakh metric tonne, the corresponding period in the previous financial year with a growth of around 3.72%. And coal production is registered a growth of almost 85%.

Anupam Goswami — BOB Capital — Analyst

Okay. Thank you, sir. I’ll join back in the queue.

M. Prasanna Kumar — Chairman and Managing Director

Thank you.

Operator

Thank you. We have the next question from the line of Rabindra Nath Nayak from Sunidhi Securities. Please go ahead.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Thank you. Sir, majority of the questions are answered. Sir, one request your e-auction and also sir Talabira-related activities that if you can upload in the website, that would be helpful on a monthly basis to know for the investors. So what is happening on that side. And secondly, if you are — it is good that the accounting team is actually giving the all details in a convincing manner every quarter. But in addition to that, if you can give a relevant detail in condensed manner and also the adjusted performance in terms of adjusted PAT that would be helpful for the investor to understand the business very well. So regarding that, another thing that this true-up petition that has come up, if I’m not wrong, we have provided so far around INR100 crores, including interest. So relating to that, whether we — there is some — any remainder provision we have to make or it is the final provision as per our assessment?

M. Prasanna Kumar — Chairman and Managing Director

Okay. Regarding the first point you raised, I think there is a very good position. We’ve noted that, and we will implement that. And regarding the second part of the question, our Director Mukesh Agrawalji will answer that.

Mukesh Agrawal — Executive Director, Finance

You’re asking the different — please, second part once again, I would like to know.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Sir, the — regarding this true-up petition, the lignite true-up petition, so around INR200 crores with the interest we’ve already provided in our books. So whether any remainder provision we are expecting from this provision? Or it is — there is another — it is a final provision as per our assessment?

Mukesh Agrawal — Executive Director, Finance

I would like to clear if we can see the north of account, we had already provided INR584 crores in earlier year for the lignite for 2014-’19. And this year — this quarter, we had made INR739 crore, no further provision is expected on account of lignite in the future for the tariff period 2014-’19.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Okay, thank you. And regarding another thing that we are booking at lignite price is for the approved price of regulatory price we are booking the magnet price is a lower rate. So still we are continuing with the structure or there is a change in the structure of the lignite pricing and the tariff?

Mukesh Agrawal — Executive Director, Finance

You are right, sir. We are still booking as per the CERC order at INR1,950 per tonne. We had filed our petition for the period 2019-’24, which is under examination at the CERC. So till the final outcome of 2019-’24 will not come, we will continue to with the CERC order rate of INR1,950 per tonne.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Okay. Okay. And sir, we have — we set up a INR70,000 crores to capex in 2030 in our total plan. So what has been spent so far what is the revised CapEx going ahead?

M. Prasanna Kumar — Chairman and Managing Director

See, we are having — as per our corporate plan, we are having plan of adding INR70,000 crores by 2030. So we are working in different directions for this. As I already explained, we are targeting for aggressively adding the solar capacity and we are already having CPSC scheme. We already got the CPSC scheme. We are tying up with Government of Assam for adding 1,000 megawatts. We are tying up with the government of Rajasthan for adding 300 megawatts. And our — 2 into 660 megawatts that will be awarded by October ’23, and our Talabira project, we are expecting to award this in the current financial year. I think with all these capacity additions, the capex will be around INR70,000 crore by 2030.

Also, we are going for the innovative ideas of the lignite to methanol project is also there. And we are participating in 600-megawatt tender at Gujarat Howrah Solar Park, which is the largest solar park in the country and in the world. Also, we are trying to get some orders from sticky participating in their tender. And we are also participating in 810-megawatt and 1,000 megawatts solar for UNL and RUNL. So I think with all these capacity additions, we are confident that we will be spending the capex by 2030.

Mukesh Agrawal — Executive Director, Finance

We are going ahead with our corporate plan.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

So what we have spent so far and what is expected, whether this INR70,000 crores includes the coal gas, the lignite gasification plant or doesn’t include the gasification plant?

M. Prasanna Kumar — Chairman and Managing Director

It includes the lignite to methanol project. It includes all the initiatives which we are planning.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Okay. Okay. So how much you have spent so far out of the INR70,000 crores?

M. Prasanna Kumar — Chairman and Managing Director

See, INR70,000 crores is for next eight years and it is starting of the year. So now most of our tenders are in the advanced stage. This 300-megawatt solar, we will be awarding in the current financial year, and we will be spending some capex. But most of our capex spending will be coming in the next financial year when we will be adding the Talabira project and the 2 into 660-megawatt project and other portfolio projects.

Mukesh Agrawal — Executive Director, Finance

Here, I would like to clarify you, as you were asking, sir. What we are incurring expenditure in annual Ghatampur project INR1,000 crores, INR1,500 crores that is from this INR700 crores, what we are doing — INR70,000 crores. Similarly, what capital expenditure we are doing in the Talabira mine INR100 crores to INR200 crores here, that is also being the part of this INR70,000 crore capex.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Okay, okay. And what is the updated capex for U.P. plant? This the last question, please. What is the total updated capex for U.P. plant, sir?

Mukesh Agrawal — Executive Director, Finance

Which plant?

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Ghatampur plant.

Mukesh Agrawal — Executive Director, Finance

Ghatampur plant, the approved one INR17,000 some odd…

M. Prasanna Kumar — Chairman and Managing Director

INR238 crores.

Mukesh Agrawal — Executive Director, Finance

INR238 crores and that will be revised INR19,000 crores.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

INR19,000?

Mukesh Agrawal — Executive Director, Finance

INR19,000 crores.

Rabindra Nath Nayak — Sunidhi Securities — Analyst

Okay, thank you.

Operator

Thank you. Ladies and gentlemen, we will take the last question from the line of Jitendra [Phonetic] from KJN. Please go ahead.

Jitendra — KJN — Analyst

Good afternoon.

M. Prasanna Kumar — Chairman and Managing Director

Good afternoon.

Jitendra — KJN — Analyst

Yeah, your numbers were really good with the quarterly number, but because of truing up order, there was a lot of net a basis, a lot of questions has been raised about this truing up orders. So can you tell me whether there is a chance of any reversal of this because you have made a review repetition for this truing up order? So what is the fair chance of getting back some money. Because after 10 years, you get this truing up order, and will happen for the year ’19 — 2019 to ’24 when that truing up order will come. So…

M. Prasanna Kumar — Chairman and Managing Director

See, we are confident that we will be — the orders will be favorable to MLCI after the orders which are pending in capital that will be in our favor only. So I think there will be a pause to impact on our financials.

Jitendra — KJN — Analyst

So out of that INR1,600 crore, how much you will get the reversal in the next…

M. Prasanna Kumar — Chairman and Managing Director

We expect almost INR2,500 crores. If the lignite O&M issue order will come in my favor, I had a provision of INR1,200 crore in the period of ’09-’14. And similarly, INR1,300 crore provision is for the ’14-’19. So if the order will be in my favor some INR2,500 crore worth will come to the company.

Jitendra — KJN — Analyst

This INR2,500 crores will be credited to the profit and loss account…

Mukesh Agrawal — Executive Director, Finance

Like what we did now, that will be reversed in the profit and loss account only. And we are fully confident that this will happen in our favor.

Jitendra — KJN — Analyst

So this may happen in the next quarter, I mean to say, in the March quarter itself?

Mukesh Agrawal — Executive Director, Finance

No. I think in the first quarter, it may happen because it is pending with APTEL, we are pursuing it for the final orders, and we will try our level best to get the orders earlier — but I think in the current financial year, it may not be possible, it will be going to next financial year, the first quarter of next financial year.

Jitendra — KJN — Analyst

So we need not worry anything — there should be no worry about this truing up order.

Mukesh Agrawal — Executive Director, Finance

Yes, yes, yes. You may not worry anything about that.

Jitendra — KJN — Analyst

Okay, thank you.

Mukesh Agrawal — Executive Director, Finance

Thank you.

Operator

I would now like to hand the conference over to Mr. Anshuman Ashit for closing comments. Over to you, sir.

Anshuman Ashit — ICICI Securities

On behalf of ICICI Securities, I would like to thank NLC India for giving us the opportunity to host this call. We’re also very grateful to the management for their time and patiently answering all the queries. And I would also like to thank to thank all the participants for making this passion that we interactive. Sir, any closing comments from your end?

M. Prasanna Kumar — Chairman and Managing Director

Thank you. Thank you for conducting the entire proceedings in a seamless manner. And we got many inputs we interacted with many people and we got many inputs to improve ourselves and improve our system and some displays in our website also. — we took note of all the solutions which we receive, and we will implement them in the interest of the company, and we’ll take the organization to new heights that is our objective. Thank you. Thank you, Anshumanji.

Operator

[Operator Closing Remarks]