Premier Energies Limited (NSE: PREMIERENE) Q2 2025 Earnings Call dated Nov. 08, 2024
Corporate Participants:
Chiranjeev Singh Saluja — Managing Director
N. K. Khandelwal — Group Chief Financial Officer
Analysts:
Mohit Kumar — Analyst
Deepak Krishnan — Analyst
Bala Murali Krishna — Analyst
Vipraw Srivastava — Analyst
Darshil Pandya — Analyst
Nidhi Shah — Analyst
Naman Jain — Analyst
Dipak Saha — Analyst
Harshil Girish Shethia — Analyst
Nikhil Abhyankar — Analyst
Aashish Upganlawar — Analyst
Anant — Analyst
Unidentified Participant
Sarang Joglekar — Analyst
Ketan Jain — Analyst
Deval Shah — Analyst
Aditya Jhawar — Analyst
Bhawani Somani — Analyst
Sushrut Gokhale — Analyst
Dipesh Sancheti — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Premier Energies Q2 FY ’25 Earnings Conference Call hosted by ICICI Securities. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Mohit Kumar — Analyst
Yeah. Thank you, Darwin. Good evening. On behalf of ICICI Securities, I welcome you all to the first call of Premier Energies Limited, post the successful listing in September ’24. Today, we have with us from the management, Mr. Chiranjeev Saluja, Managing Director; Mr. Abhishek Loonker, Non-Executive Director; and Mr. N. K. Khandelwal, CFO. We’ll begin with the opening remarks from the management, followed by Q&A.
Thank you and over to you, sir.
Chiranjeev Singh Saluja — Managing Director
Thank you, Mohit. Am I audible?
Operator
Sir, you are audible. You may proceed.
Chiranjeev Singh Saluja — Managing Director
Okay. Thank you. So good evening, everyone, and thank you all for joining us today. This is a special moment for Premier Energies as we are addressing our first analyst call post listing. I am Chiranjeev Saluja, Managing Director of Premier Energies, and it is an honour to present our quarterly results in this new chapter of our journey. I’m joined today by my colleagues, N. K. Khandelwal, Group CFO; and Abhishek Loonker, Non-Executive Director.
It’s a proud moment for us to share with all of you that Premier Energies has clocked another quarter of outstanding operational and financial performance, hosting excellent revenue and earnings growth. For the Q2 FY ’25, company has achieved a revenue of INR1,553.59 crores as against INR701.81 crores in Q2 FY ’24, marking a 121.4% year-on-year increase. This growth is driven by robust demand from domestic market, reflecting solar energy’s growing importance in the energy mix.
Our exports for this quarter were 2.82% of the quarterly revenue. The EBITDA for the quarter stood at INR406.95 crores compared to INR107.02 crores in Q2 FY ’24, exhibiting a growth of 280.2%. The EBITDA margin improved from 15.25% in Q2 FY ’24 to 26.19% in Q2 FY ’25. This improvement highlights our focus on operational excellence, cost optimization, and our ability to efficiently ramp up capacity and meet the rising demand.
The profit after tax for the quarter surged to INR205.95 crores, making a remarkable 289.6% year-on-year growth compared to INR52.86 crore in the same period last year. PAT margin has improved from 7.53% in Q2 FY ’24 to 13.26% in Q2 FY ’25. The proceeds from our IPO have significantly strengthened our balance sheet. Our net debt-to-EBITDA ratio was 5.5 in H1 FY ’24, and today we are net cash positive.
As we discuss our performance, it is equally important to touch upon our future growth plans and the broader outlook of the solar sector. We are executing a 1 gigawatt TOPCon cell line expansion, which will be completed by Q4 FY ’25. Further leveraging the opportunities for backward integration, we are planning an investment into a wafer manufacturing facility of 2 gigawatt, which is targeted to be commissioned by FY ’26.
We are also pleased to announce today our foray into aluminium frame manufacturing business by setting up a 36,000 metric ton per annum facility for captive consumption. This project would require a capex of INR230 crores, wherein the equity portion of 25% will be funded through internal accruals. This investment into aluminium frame manufacturing will improve our EBITDA margin by 100 basis points to 150 basis points.
We are very well placed to benefit from the solar power demand outlook, and we are highly confident of achieving timely project execution and turnaround by leveraging our core strengths and delivering value-enhancing investments to our stakeholders. I look forward to sharing and discussing our progress in detail with all of you in the years to come.
Thank you, and we are now open for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead.
Deepak Krishnan
Hi, Chiranjeev. Am I audible?
Chiranjeev Singh Saluja
Yes, you are.
Deepak Krishnan
Yeah. Congratulations on a good set of numbers. Maybe just wanted to first start off, given the strong performance in 1H, is there any sort of revenue and EBITDA margin guidance that you would want to give for the full year?
Chiranjeev Singh Saluja
So, it’s not that we cannot give any guidance, but what we can tell you is that being one of the top companies in the solar manufacturing space in India, we will continue to maintain leadership position and as the industry grows, we will be in the top tier of the growth.
Deepak Krishnan
Sure. Maybe just wanted to sort of understand this sharp margin improvement that we’ve kind of seen. Even considering the fact that we’ve seen a sharp increase in other expenses. Anything that you want to call out why other expenses have seen a sharp jump Q-o-Q when revenues have sort of been flat?
Chiranjeev Singh Saluja
So, margin improvement has happened because lines have stabilized and they are working on better utilization compared to last year. And last year our cell line was not commissioned. It had got commissioned only in the Q3 of last year. And then also efficiency in procurement because of scale what we have. So all these have contributed for the margin improvement.
Deepak Krishnan
Sure. Just anything on the other expense? You’ve seen a sharp jump Q-o-Q with — for a flat revenue base. It’s gone up to INR194 crores from about INR131 crores.
Chiranjeev Singh Saluja
So that’s as per our policy and provisions as the revenue is growing. We have a provision which is there for warranty because modules are sold on a 25-year to 30-year warranty. So — because if you look at the revenues, they’ve almost doubled compared to last year. So that’s how that provision has gone up.
Deepak Krishnan
Sure. Maybe just wanted to sort of check out in terms of any volume numbers that you want to indicate in terms of production of cell and module that you did. I know we already have the revenue numbers in the presentation, but any broad range of how much did we produce cell and module?
Chiranjeev Singh Saluja
So, we generally track and share revenue numbers and not — both not volume and revenue because of confidentiality reasons. So I think revenue is what would give you an indicator on volumes.
Deepak Krishnan
Sure. I just wanted to sort of understand because if we assume sort of very strong EBITDA margins of maybe 35%, 40% on cell, even at module level, we will be doing north of 20%. So is there sort of like a healthy mix of DCR also in the module revenue number?
Chiranjeev Singh Saluja
Yeah. So we do have a healthy mix of DCR because we are one of the very few two or three players who are making DCR cells in India. And if you talk of the EBITDA margins, the operating EBITDA margins have increased by about 3.3%. And then this is again because of operational efficiency and also a mix of DCR and non-DCR remains almost constant every quarter. But there is a healthy mix.
Deepak Krishnan
Sure. And maybe just one final question from my end. I think just wanted to understand our US expansion policy given the change in government in the US, and does this further strengthen our thought process of expanding on the ground presence in the US? Or how are you looking at if there is any potential IRA rollback or any of that? How would you consider your investments today? Exports is a very small part, I understand. But obviously we are also looking at certain expansions in the US.
Chiranjeev Singh Saluja
Yeah. So our exports have been not very significant for a long time now. It’s simply because of the demand for the domestic market. There is a huge domestic market demand and we are committed to the requirements in the Indian market. On US expansion, we are a little bit of a wait and watch looking at the political developments. We have signed an MOU and announced that we’ll be setting up a gigawatt of facility along with our US partner that’s Heliene.
Generally, as I had even told earlier in my investor meetings that to construct a cell line takes about two years to three years. We are just starting off now. And we will be looking at how developments happen. We are not — we are one of the few companies in solar manufacturing in India which is not dependent on the US market.
Deepak Krishnan
Yes, sir. I think those are my questions and best of luck for future projects.
Chiranjeev Singh Saluja
Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Bala Murali Krishna [Phonetic] from Oman Investment Advisors. Please go ahead.
Bala Murali Krishna
Yeah, good evening. I want to understand the margins going forward in backward integration. So where would it be by the year end?
Chiranjeev Singh Saluja
It’s our plan to maintain similar margins than what they are today. And according to us, we will continue to maintain these margins because the industry — the demand is very robust. We are looking at a little bit of softening the margins only after about two to three years.
Bala Murali Krishna
Okay. And as per the module capacity, as of now, we have 4.13 gigawatt. Out of which, could you please break up technology-wise like TOPCon how much and monocrystalline how much?
Chiranjeev Singh Saluja
Yeah. So our lines are apart from the 250 megawatt, that’s 0.25 gigawatt of polycrystalline line. Everything else is neutral. We can do Mono Perc, TOPCon, HJT, anything what we want.
Bala Murali Krishna
I mean, there is no rate of investment in the technology, go for TOPCon or HJT?
Chiranjeev Singh Saluja
No. At the moment, almost 70% to 80% of our production is TOPCon. To move to HJT, the spend on capex is insignificant. It is just changing some jigs and fixtures. So it’s not material at all. But I’m talking about module line.
Bala Murali Krishna
Okay. Understood. So by the year-end, we are going to commission again a 1 gigawatt cell facility also. So how much it could contribute to the margins? Like you mentioned that aluminium frame will contribute 1% to 1.5%.
Chiranjeev Singh Saluja
So, for aluminium, we have already shared the improvement in margins. TOPCon is a technology which is just coming into India. And it is the first time even we are following into TOPCon. So I think I will refrain from giving margin improvement on TOPCon.
Bala Murali Krishna
Okay. I see that most of the…
Operator
May we request you to please rejoin the queue for follow-up questions.
Bala Murali Krishna
Sure, sure.
Operator
Thank you. The next question comes from the line of Vipraw Srivastava from PhillipCapital. Please go ahead.
Vipraw Srivastava
Hi, I’m audible, right?
Operator
Yes, sir, you are audible.
Vipraw Srivastava
Okay. So just first question on your margins. Obviously, you are making margins which is very higher than your peers. And I understand that is because of the DCR cells which you are selling. But it is being anticipated that by year-end, India should have around 10 gigawatt to 12 gigawatt of cells coming online from various players. Then that monopoly which you have currently goes away. So how do you see margins progressing? Because if more solar cell capacity comes online, then the DCR compliant modules which are selling at very high elevation right now, might fall gradually.
Chiranjeev Singh Saluja
Yes. So we had given this in all our investor presentations that the demand is very robust. And as more cell lines come up and competition catches up, there would be a softening of EBITDA margins from where they are today. And this would take at least about two years to three years as cell lines come up. But it also depends on how demand increases in US and in India. So it’s very difficult to give an answer to that today.
Vipraw Srivastava
Fair enough, sir. Fair enough. So currently, obviously, since ALMM and cells are still some time away, government is indicating 2026. So, I mean, what benefit do you have compared to China because cells sourced from China are still cheap. So apart from DCR, there is no regulatory requirement to use Indian-made cells. What’s your pitch to players if you’re pitching your cells?
Chiranjeev Singh Saluja
So these are two different markets. What is happening in China is an oversupply situation. They are bleeding. You can look at the financials of Chinese companies. They are suffering huge losses when you see their quarter-on-quarter results. So it’s a very tricky question to compare what China prices are today. Because when you look at China prices over the last one, one-and-a-half years, they are today selling below even material costs because of survival. So there are two different markets in India. And even if you talk of Chinese companies making solar cells outside China, we are able to compete with them. It’s only in China that they are able to dump to other countries. So it’s very difficult to compare these two markets.
Vipraw Srivastava
Well, in the non-DCR market, someone who is sourcing the cell from China will have an advantage. Indian module manufacturers sourcing a cell from China will have an advantage, right, in the non-DCR market?
Chiranjeev Singh Saluja
Yeah. So we also have a non-DCR market. So we do import cells from China for our IPP customers. And that’s a significant portion of our revenue. So there is no competition between these two markets. When an IPP customer wants solar panels from us with Chinese cells, we do import and give them solar modules which are ALMM compliant. Now, once ALCM gets imposed, which the government has announced that they will impose in the future date, then there will be no difference because then everything will become DCR.
Vipraw Srivastava
Sir, last question…
Operator
Sorry to interrupt. We request you to please rejoin the queue if you have further questions.
Vipraw Srivastava
Sure.
Operator
The next question is from the line of Darshil Pandya from Finterest Capital. Please go ahead.
Darshil Pandya
Hello. Am I audible?
Chiranjeev Singh Saluja
Yes, you are.
Darshil Pandya
Yes, sir. Thank you and congratulations on the great set of numbers, sir. Sir, my first question would be on, there is some anti-dumping duty petition filed by the Indian solar firms. Do you have any update on that as on where this thing is right now?
Chiranjeev Singh Saluja
It’s still in the nascent stage. It’s just been filed a couple of days ago. So, there is no development or significant update on that as of today.
Darshil Pandya
Okay. And do we expect any timeline or something that we may expect some developments from here on?
Chiranjeev Singh Saluja
It’s difficult to say. It may take a couple of months and it depends. There are a lot of stakeholders involved. So we really cannot give the outcome of this.
Darshil Pandya
Okay. All right. And, sir, the second question would be, sir, what percentage of revenue it comes from government projects? Or do we do something that we get revenues from the government sector?
Chiranjeev Singh Saluja
So, in the government sector, we’ve got two kind of [Indecipherable] projects. Then our revenue in H1 has been around 10.3%.
Darshil Pandya
From government?
Chiranjeev Singh Saluja
Yes.
Darshil Pandya
Okay. And, sir, how are we targeting to increase our revenue from government? Are we targeting that?
Chiranjeev Singh Saluja
It depends. I mean, it depends on how the tenders come up, what the payment terms are. So it’s — you know, it all depends.
Darshil Pandya
Okay. And sir…
Operator
Sir, we request you to please rejoin. Yes. Thank you. We have the next question from the line of Nidhi Shah from ICICI Securities. Please go ahead.
Nidhi Shah
Hi. Thank you so much for taking my question. I had a couple of questions on the expansion that you had mentioned in the geography. So the 4 gigawatt cell and module line, have we given out orders for the expansion yet?
Chiranjeev Singh Saluja
So, yeah, the order in the 4 gigawatt project is that the land has already been acquired. We have finished with the land levelling and the boundary wall. We have already signed the agreements with the consultant who is going to be doing the design and engineering. And the tool finalization process is ongoing. As on today, we have not released the orders for the tools.
Nidhi Shah
And, again, so the timeline that we had mentioned earlier for the setup of this, we are well in order to achieve that timeline?
Chiranjeev Singh Saluja
Yes, we are well on track.
Nidhi Shah
All right. So my second question would be on the — especially at JV which in the US where we would set up to produce there. How is that progressing?
Chiranjeev Singh Saluja
Sorry, you’ll have to repeat your question. Maybe I think your voice was breaking.
Nidhi Shah
So, we were all talking about JV in the US and we would essentially produce module in the US.
Chiranjeev Singh Saluja
Yes. So the JV in the US is to produce solar cells. But our JV partner in the US is a module manufacturer, manufacturing modules for the last 14 years in the US. We are progressing well, but as of now, we are in a wait-and-watch situation. Because of the political developments in the US, we want to wait to understand the new regime’s stand on the IRA benefits. So, as of now, we are just focusing on design and identifying the sites. So we will be updating more on this as we progress.
Nidhi Shah
All right. Thank you so much. This is all my questions.
Operator
Thank you. The next question comes from the line of Naman Jain from Kotak Institutional Equities. Please go ahead.
Naman Jain
Hello. Am I audible?
Chiranjeev Singh Saluja
Yes, you are.
Naman Jain
Yeah. So, congratulations on a great set of numbers. Actually, you were going through your presentation and one of the things which you have shared is the module pricing, right? So, Mono Perc is currently trading at $0.19 while TOPCon is trading at $0.11. Any reason for this? Is it because of DCR and its weighted average or is there some other reason or a difference?
Chiranjeev Singh Saluja
So, I think those were prices given in the Chinese — China market. Let me just look at that. As of now, in India, the TOPCon module prices are around $0.155 to $0.16 for non-DCR and DCR is around $0.23 to $0.24.
Naman Jain
Okay. And any other reason for the gap, is just because of China, is it?
Chiranjeev Singh Saluja
You are talking about the drop in prices in China?
Naman Jain
No, no, just the gap. The drop is understandable.
Chiranjeev Singh Saluja
Yes, yes, yes. The gap is because China is leading. They are selling below cost and we are able to get full advantage of that. Other customers in India, the IPPs are getting full advantage of cheaper solar cells from China because of overcapacity in China and that’s why we are able to give them modules at $0.155, $0.16.
Naman Jain
Got it, got it. Thank you. That’s it.
Operator
Thank you. The next question comes from the line of Dipak Saha from KRChoksey Shares and Securities. Please go ahead.
Dipak Saha
Hi, am I audible?
Operator
Yes, sir, you are audible.
Chiranjeev Singh Saluja
Yes.
Dipak Saha
Sir, my question is, on the wafer side, the capacity expansion that we are doing, so can you please highlight your plans for polysilicon? What are your plans exactly? Are we going to — I mean, what are the dynamics there? Do you have Indian suppliers for fixing grade silicon or are we looking to import it and further processes for ingots? If you can highlight that particular part on the wafer side.
Chiranjeev Singh Saluja
Sure. So, we have announced even in our DRHP and RHP that we have entered into an agreement with a Taiwanese company to set up wafer manufacturing. The equipment for this has already been ordered and we expect commissioning sometime in FY ’26 for this 2 gigawatt wafering facility. And we will also get into backward integration to ingot subsequently once this line stabilizes. We don’t have any plans to get into polysilicon manufacturing. [Speech Overlap]
Yeah. We will be sourcing our polysilicon from outside India. And as and when polysilicon is available in India under the PLI scheme, if we get polysilicon in India, we will buy it in India. But if we don’t, we would import polysilicon.
Dipak Saha
So even without having polysilicon, will we still be able to gain better margins with the wafer backward integration that we have gained, right?
Chiranjeev Singh Saluja
Yeah. Even without getting into polysilicon, wafer and ingot itself will improve our margins.
Dipak Saha
Okay. And the last part is, I missed it. Pardon me for that. On the US side, did you say your plans to set up the JV of a plant in the US is currently on hold because of policy uncertainty?
Chiranjeev Singh Saluja
No, it’s not on hold. We’re just going a little slow to understand how the new regime in the US to get more clarity on their views on clean energy transition. So, it’s not on hold. As I told, any case, it takes about two-and-a-half, three years to set up a cell line. So it’s progressing. But we will just look at how things develop on the US side with the speculations and kind of rumours on how the focus will be on clean energy.
Dipak Saha
No, my question is to be more specific. Is it just because of the change in government? Because I’m just trying to understand rest of the things with the company — the particular company you are trying to set up the JV with, no change on that part, right? That remains untapped. It’s just the policy uncertainty and those things are impacting your decision, right?
Chiranjeev Singh Saluja
Yes, there is no change in our plans with our JV partner. We have an excellent relationship with them. The whole point of going a little slow is only to understand how the new regime in the US decides on the clean energy transition. There’s no other reason.
Dipak Saha
Okay. Thank you, sir. I’ll call back on that. Thank you.
Operator
Thank you. The next question is from the line of Harshil Shethia from Renaissance Investments. Please go ahead.
Harshil Girish Shethia
Can you outline the total capex that you’ve planned for the cell module and the wafer manufacturing facility?
Chiranjeev Singh Saluja
So, for the 1 gigawatt cell line, the capex investment is about INR670 crores. For the 4 plus 4 gigawatt, which is coming from the IPO rate, is INR3,300 crores. And on the wafer, it’s about INR175 crores.
Harshil Girish Shethia
And for the aluminium manufacturing?
Chiranjeev Singh Saluja
INR230 crores.
Harshil Girish Shethia
Okay. And that would be done in phases. So how much would be done in FY ’25?
Chiranjeev Singh Saluja
So, FY ’25, we will be finishing the 1 gigawatt of TOPCon, which is the INR670 crores. The aluminium would come in FY ’26 and everything else will come in FY ’27.
Harshil Girish Shethia
All right. Okay. Understood.
Operator
Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead.
Nikhil Abhyankar
Thank you, sir. Sir, I just had a query on the order book position that you have given in the PPT. So this 3,800-megawatt order book that you have mentioned, is it only for module or is it module plus cell? Can you just clarify?
Chiranjeev Singh Saluja
So, it is both put together.
Nikhil Abhyankar
It is cell plus module. Can you just give us a split, if you can, sir?
Chiranjeev Singh Saluja
The split is already shown in the investor presentation. In the revenue mix, it’s about INR3,943 crores for modules and INR1,915 crores for cell and INR375 crores for EPC.
Nikhil Abhyankar
And sir, this pipeline of 4,250 megawatt, given the bidding activity that we have seen in India, isn’t it a bit less? So how exactly do you like — how exactly do you target your projects for which you will be bidding?
Chiranjeev Singh Saluja
Yeah. So we don’t want — the bidding activity is quite robust. The demand is really high, but we don’t want to take — looking at the volatility in the market, we don’t take very long-term kind of bets on orders. So these are orders which we look at finalizing and closing in the next six months to eight months.
Nikhil Abhyankar
Okay. It is only that activity. Sure, sir. That’s all from me, sir.
Operator
Thank you. The next question is from the line of Aashish Upganlawar from InvesQ PMS. Please go ahead.
Aashish Upganlawar
Yeah. Thank you so much. Sir, on the question that was asked on your standard for the US capacity, is it possible to give some more insights whether current IRA, can the new government basically scrap it?
Chiranjeev Singh Saluja
So, we have not heard anything concrete that there is going to be any change in the IRA. There are kind of rumours and market news and speculation based on statements given by the various political parties when they were campaigning. So, after the government is in place now, we have to wait and watch. We have to see how, what kind of stance they take. As of now, there is no change.
Operator
Thank you. The next question is from the line of Anant [Phonetic] from Mount Intra Finance. Please go ahead.
Anant
Hi. Thank you for taking my question. I have two questions. Could you please provide me an overview of the major raw materials required for a solar module and their respective contributions as percentages to say a 1 gigawatt module? So let’s just say solar cells, solar glass, aluminium frames, what would require — [Technical Issues}
Chiranjeev Singh Saluja
Sorry, your voice was breaking. Could you repeat that?
Anant
Could you please provide me an overview of the major raw materials required for a solar module and their respective contributions as percentages to a 1 gigawatt module? So, let’s just say solar cells, solar glass, aluminium frames, how much would that account for as a cost?
Chiranjeev Singh Saluja
So this keeps changing depending on the price for solar cells. As of today, when you talk of non-DCR modules being sold at $0.155, $0.16, the contribution for cells is close to about 40%. And then the BOM, that is the Balance of Material, is the rest of the contribution which comes in. In terms of an overall mix of DCR, non-DCR cells, our material margin is ranging between 35% to 38%.
Anant
Okay. And…
Operator
Sir, may I request you to please rejoin the queue for follow up questions. Thank you. The next question is from the Line of Anup [Phonetic] from T-Systems [Phonetic]. Please go ahead.
Unidentified Participant
Sorry, my question is asked by earlier users, so I can skip. Yeah. Thank you.
Operator
Thank you. We will proceed to the next question, which will be from the line of Sarang Joglekar from Vimana Capital. Please go ahead.
Sarang Joglekar
Yeah. Thanks for the opportunity. So, just wanted to understand, is there any, I mean, regional hold in the industry? For example, you have factory in Telangana, so does that mean that you have better holdover market in that region and other people who are in factories in North, they control the market there? Is there any kind of thing?
Chiranjeev Singh Saluja
No, there is nothing like any significance that because we are based in Telangana, we have a stronger market share in this region. We sell all across India. We sell our solar cells to over 25 module manufacturers in India. So we sell all across India. There is no specific regional mix.
Sarang Joglekar
Okay. And sir, can you give a distribution of how much of your modules are sold directly to EPC or through government tenders or through distributors?
Chiranjeev Singh Saluja
So we have about maximum sales are in domestic terms, it is about 41%. And to IPPs is 32%. We do OEM for customers, that is about 12.2%. And export is about 3.9%. So that’s the mix. [Speech Overlap] So IPP customers is 31% [Phonetic]. IPP is a large power plant developers.
Sarang Joglekar
Okay. Got. Yeah. Thanks. That’s it from my side.
Operator
Thank you. The next question is from the line of Vipraw Srivastava from PhillipCapital. Please go ahead.
Vipraw Srivastava
I’m audible, right?
Operator
Yes sir, you’re audible.
Vipraw Srivastava
I just wanted to understand, annually, what is the DCR market in terms of gigawatts in India annually?
Chiranjeev Singh Saluja
So, this is increasing now with the PM Surya Ghar Muft Bijli Yojana and the Kusum scheme, which was announced. In fact, one of the components of the Kusum scheme was converted to DCR from 1st of April, ’24. So the demand is anywhere between, as on today, between 10 gigawatt to 12 gigawatt, and this is growing. The pipeline is huge. So when you talk of pipeline, there is — the Kusum scheme, which has a huge pipeline. And then you have the CPSU scheme. You have the Surya Ghar Muft Bijli Yojana.
So if you look at the Kusum scheme itself, only about 5 lakh pumps have been installed, as against the government’s target of 50 lakh pumps by FY ’26. And if you talk of the feeder level and the grid connect, that’s about 34.8 gigawatt of installation, which has to be done at the target under the component C. In the Surya Ghar Muft Bijli Yojana, that’s about 25 gigawatt to 30 gigawatt to be done over three years. So this demand is growing. I would estimate it’s been 10 gigawatt to 15 gigawatt as of today, but it’s growing.
Vipraw Srivastava
Sir, since you brought Kusum scheme, so on those lines, so basically government has an access dashboard which you can actually track the pumps being installed. So even the government has sanctioned a lot of tenders for these pumps, but actual installation by farmers is not happening. Our farmers are not ready to spend money on this. So how do you see this progressing? Because even the government is giving tenders and Shakti Pumps are installing those pumps, you are getting the money. But if farmers are on the ground and installing those pumps, then maybe you could face an open capital issue in future. Is that a possibility?
Chiranjeev Singh Saluja
So I think the government has seen this slow progress which has been happening in the last couple of years. And they have come out with efficient mechanism, like in the PM Surya Ghar Muft Bijli Yojana scheme, they have come up with direct subsidy transfer to the individual or the family, which is installing the rooftop. And they have minimized documentation. You could very easily get your subsidy and very minimal documentation required. So there are processes involved in disbursing the subsidy. Similar issue was also in the Kusum scheme, which has now been simplified, with Shakti and the government getting very proactive. So we feel that the demand is going to grow from here.
Vipraw Srivastava
And sir, lastly, the numbers for Surya Ghar Muft Bijli Yojana, can you please repeat, what was the target in three years?
Chiranjeev Singh Saluja
About 30 gigawatt. We are talking about 10 million households, even if you take an average of a very conservative average of everybody installing a 3-kilowatt system, that’s about 30 gigawatt.
Vipraw Srivastava
Fair enough. Thank you, sir. Thanks a lot.
Operator
Thank you. The next question is from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Bala Murali Krishna
Sir, thanks for the opportunity. Could you please give a break-up of DCR and non-DCR, sir, in this current quota?
Chiranjeev Singh Saluja
So, could you repeat? What did you mean, break-up of?
Bala Murali Krishna
DCR revenue and non-DCR revenue.
Chiranjeev Singh Saluja
No, we don’t share revenue of DCR and non-DCR in our revenue mix. It’s a total revenue mix which we share.
Bala Murali Krishna
Okay. So we are not exporting anything to the other countries, but do you see any opportunity going forward for the exports as we heard from other competitors that export margins are a little better than the domestic margins?
Chiranjeev Singh Saluja
We are looking at various export opportunities, but at the moment, there is such a robust demand in India that we are catering to the domestic demand because of the unprecedented volumes which are required locally. And in our investor presentation, we have also shared the revenue mix of solar cell and module. I think you can get some idea from that.
Bala Murali Krishna
Yes, sure, sir. So, under this aluminium frame capex, sir, we are going to purchase aluminium from the smelter and do that process here or we’re running any smelting or something like that?
Chiranjeev Singh Saluja
No, we will be procuring the billets and then doing the exclusion and anodizing and then refabrication.
Bala Murali Krishna
Okay. Thanks. That’s all from me, sir. Thank you.
Operator
Thank you. The next question is from the line of Darshil Pandya from Finterest Capital. Please go ahead.
Darshil Pandya
Thanks again for the opportunity, sir. Just one question is on the interest cost. Sir, what will be the interest cost for this financial year and what is the debt around it in the company?
N. K. Khandelwal
So, the interest cost for the company right now on the long-term liabilities is around 9.25% per annum. And for the short-term liabilities, working capital funds, it’s in the range of about 8.5%. And for the total long-term debts and short-term debts, as on 30th September, long-term debts are INR863 crores, short-term debts are INR385 crores. So INR1,248 crores is the total debt. Against that, we have cash in hand of about INR1,520 crores, including the IPO proceeds. The net cash on hand is about INR223 crores against the IPO proceeds and regular cash of about INR40 crores liquidity to INR270 crores is the total cash.
Darshil Pandya
Okay. And this will be roughly around what INR180 crores, INR190 crores for the full year, the interest cost? Hello?
N. K. Khandelwal
What’s your question?
Darshil Pandya
Sir, the full year interest cost for this financial year.
N. K. Khandelwal
Full year? Around INR180 crores to INR200 crores.
Darshil Pandya
All right. Thank you so much.
Operator
Thank you. The next question is from the line of Dipak Saha from KRChoksey Shares and Securities. Please go ahead.
Dipak Saha
Hi, sir. Am I audible?
Operator
You are audible, sir. You may proceed.
Dipak Saha
I just wanted to understand one thing. I missed the numbers on the industries, I mean, the customers, if you can just highlight that particular part, how much is the IPP and other players that you are supplying to? OEMs and IPPs in terms of the models that you are producing.
Chiranjeev Singh Saluja
So, I think I have only answered this question. You are talking about the percentage of revenue to the IPPs, right?
Dipak Saha
Right.
Chiranjeev Singh Saluja
Yeah. 32% is our mix in H1 ’24-’25, 32% is to IPPs, 41% is to other domestic customers, and 12% is to OEM customers, 10.3% is government customers, and 3.9% is exports.
Dipak Saha
Okay. Sir, what was your order book in terms of — if you can say in Q1 what was your order book?
Chiranjeev Singh Saluja
You are talking about Q1 or Q2?
Dipak Saha
Q1 FY ’25, what was your order book?
Chiranjeev Singh Saluja
Yeah, Q1, the order book was INR5,700 crores and Q2, we have already shared in the investor presentation.
Dipak Saha
Broadly, I am asking in terms of gigawatt if you can — also in Q1, what was this order book in terms of gigawatt [Indecipherable] and module?
Operator
Sir, sorry to interrupt but your line sounds muffled, we request you to use the…
Dipak Saha
Okay, just a second. Yeah, is it better now?
Operator
This is slightly better, sir. Please go ahead.
Dipak Saha
Okay. I am asking in Q1, you shared the absolute number. If possible, can you please share these in terms of gigawatts, what was your order book?
Chiranjeev Singh Saluja
So I think Q1 numbers were given in the RHP, the megawatt and the order book. Q2 numbers is 3,860, that’s 3.86 gigawatts, INR6,233 [Phonetic] crores.
Dipak Saha
Fine. I mean, we looked into it, so we couldn’t get the Q1 numbers in terms of gigawatts in the order book. The absolute number was there, but in terms of gigawatts, that numbers, probably even I couldn’t find. So that is why I was asking.
Chiranjeev Singh Saluja
Okay, then allow us to come back to you on this, please.
Dipak Saha
Fine, thank you.
Operator
Thank you. The next question is from the line of Ketan Jain [Phonetic] from Avendus Spark. Please go ahead.
Ketan Jain
Hello. Hi, sir. Sir, my question is on, what would be the realizations on sales in Indian market? And who would be the typical customers for this?
Chiranjeev Singh Saluja
When you talk of cells, you are talking about Indian manufactured cells, right?
Ketan Jain
Yes, yes, Indian manufactured.
Chiranjeev Singh Saluja
So, it ranges depending on the order volume between $0.13 to $0.15 cents per watt.
Ketan Jain
Okay. And who would be the typical customers like for the module manufacturers? Is it the B2B? Is it a B2B market only then?
Chiranjeev Singh Saluja
Yeah, so about 15%, 20% of our cells are going into export, and about 30% are going to B2B a different module manufacturer, and the rest goes into own consumption. DCR… [Speech Overlap]
Ketan Jain
Yeah. Understood. Thank you.
Operator
Thank you. The next question is from the line of Deval Shah from Mirae. Please go ahead.
Deval Shah
Yeah. Hi, sir. Thank you so much for the opportunity. My first question is, our 36,000 metrics in aluminium frame capacity, what kind of module requirements will this capacity suffice?
Chiranjeev Singh Saluja
So as of now, it will suffice our module requirement, which is close to about 3 gigawatts, 3.5 gigawatts.
Deval Shah
And sir, my second question now is, when we say once our wafer capacity commissions, this will result in 100 basis point, 120 basis point margin improvement. So does this imply that we will be able to manufacture wafers at prices less than $0.015 to $0.02 per watt that which we are currently importing?
Chiranjeev Singh Saluja
Margin improvement was for aluminium, not for wafers.
Deval Shah
Understood. So, sir, on the wafer side, are we getting any benefits under PLI, and will we be able to — or will it result in margin improvement once the wafer capacity is commissioned? So will our wafer proficiency cost be less than $0.015 to $0.02 per watt?
Chiranjeev Singh Saluja
So today, as I told you, China is bleeding. It’s very difficult to compare today’s China price with what our margins would be when we start our wafer manufacturing. We are getting into wafer manufacturing because we want to get into backward integration, and there is a very robust demand from customers in the US for a clean solar supply chain. There are customers in the US whom we sell solar cells to who want non-Chinese wafers.
It will again be similar to the DCR, non-DCR kind of a model. When we are selling to entities in India, we did not use our own wafers. And looking at the support from the Government of India, the roadmap is clear. They are talking about ALCM now, and they want to also look at ALWM as we go forward.
And talking about the PLI, we are not under PLI. We are under the MSIPS and the SIPS scheme, and the local incentives given by the Telangana government, we’ll do not have any subsidy under PLI.
Deval Shah
Understood. Thank you so much.
Operator
Thank you. The next question is from the line of Harshil Shethia from Renaissance Investments. Please go ahead. Harshil Shethia, your line has been unmuted. You may proceed with the question. As there’s no response from the participant…
Harshil Girish Shethia
Hello, am I audible?
Operator
Yes, go ahead.
Harshil Girish Shethia
Sir, what I want to understand is whenever a customer orders, do they have the option to say that I want the cell from so and so player and you make the module, or they just have to get an integrated cell from you only?
Chiranjeev Singh Saluja
It depends. It depends on the customer. If it is an IPP customer, they could actually decide on getting the solar cells and tell us to do the rest of the bomb. And if it is a DCR customer, then it could be our in-house cell and we would make the module.
Harshil Girish Shethia
So, can I say that 100% of our cell capacity is capitally consumed?
Chiranjeev Singh Saluja
Sorry 100% of our cell capacity is…?
Harshil Girish Shethia
Is capitally consumed for our own modules only?
Chiranjeev Singh Saluja
No. So, we supply solar cells to about 25 module manufacturers in India. We also export cells to the US. So what goes into our capital consumption is around 50%.
Harshil Girish Shethia
Okay. Understood. And only the cells which are sold outside are being specified for that INR448 crores of revenue?
Chiranjeev Singh Saluja
Yes.
Harshil Girish Shethia
Okay. Understood. Thank you, sir.
Operator
Thank you. The next question is from the line of Aditya Jhawar [Phonetic] from AK Investments. Please go ahead.
Aditya Jhawar
Thanks for the opportunity. This is regarding the cell market. So, in a couple of — I mean in a couple of quarters, there will be large sums of modules, cell manufacturing companies are going live. And how do you see the competition here? Is it easy to stabilize the line because they are coming up with, I guess, 5 gigawatt of cell capacity? So, how will this affect Premier Energies as a company? That is my first question.
And the second question is, I see you’re putting a lot of capacities till FY ’28 and the prices might be unstable at FY ’28. How do you see in terms of growth and what are your revenue and margin guidance in the coming three years? These are my three questions. Thanks.
Chiranjeev Singh Saluja
So, talking about capacity which are coming into India, we have given this update even earlier that it is not easy to set up cell line. If you look at the companies which have been setting up cell line or announced setting up cell line, and if you look at how much time it’s taking them to even commission the lines and then to stabilize these lines is not easy.
We are one of the — I would say just, one of two companies in India which have almost 14 years of experience in cell manufacturing and at scale. So, according to us, it takes time for people to set up cell manufacturing. It’s a process-driven industry. It’s not easy. And with the announcements being made, we see that looking at the demand, there’s going to be a very clear demand and margins are going to be stable for at least two-and-a-half, three years.
Post that, what is going to be a differentiator between Premier and other companies is the knowledge, the operational efficiency, the kind of deep and rich experience we have. And then if you look at what Government of India is talking about, ALCM, if that comes in, which the government is quite positive about, then the entire market would need 40 gigawatt to 50 gigawatt of cells. So, if ALCM comes in, then we are looking at this whole story going for at least four to five years with very stable margins.
Aditya Jhawar
And what about revenue and margins for the next three years? What is your target, internal targets?
Chiranjeev Singh Saluja
So, our internal target is to be among the top one or two companies growing at the same rate and having similar margins of what the industry would be delivering. So we would like to maintain leadership position and have similar kind of growth story the industry has.
Aditya Jhawar
But I don’t see you putting a lot of capacity in the modules, right? I mean, industry is going at 20 to 25 at the single player, but we are planning for 8 gigawatt. So, there is a lot of gap there in solar module. But I know you are good at solar cell, which is commendable. But, yeah, and how we would be in — but in revenue and margins, do you have any thoughts? Can you — concrete number can you share, if you have internal targets? That would be helpful.
Chiranjeev Singh Saluja
Yeah, pardon me, I’d like to refrain from any future guidance.
Aditya Jhawar
Okay. Okay, sir. Wish you all the best. Thanks.
Chiranjeev Singh Saluja
Thank you.
Operator
Thank you. The next question is from the line of Aashish Upganlawar from InvesQ PMS. Please go ahead.
Aashish Upganlawar
Yeah. Sir, I just wanted to understand the margin profile if — of an integrated facility. I mean, as you go backwards, how do the margins move? If you’re a module manufacturer with your skill, maybe. And when you’re doing cell plus module and then wafers plus cell plus module. Just for understanding, we need to know.
Chiranjeev Singh Saluja
I think our results are up there. You know what kind of margins an integrated player is making and there are other listed players in pure play module. I’m sure you can compare what the advantage is to be an integrated player.
Aashish Upganlawar
Okay. So would that be maybe module would be 16%, 17% EBITDA at that scale and integrated would make it say 25% plus. Is that a fair assumption?
Chiranjeev Singh Saluja
Yeah, I think what is shown in pure play module listed players and our numbers are there. I think it’s a ballpark around there.
Aashish Upganlawar
Okay. Fine, sir. Thank you.
Operator
Thank you. The next question is from the line of Bhawani [Phonetic] from Krijuna Research. Please go ahead.
Bhawani Somani
Hello, sir. Thank you for taking my question. My question was with respect to this aluminium frame manufacturing, so will that be whole for captive consumption or also for providing to other companies?
Chiranjeev Singh Saluja
As of now, what we are going to implement in phase 1 and phase 2 is going to be captive. We don’t have plans to sell to anybody else.
Bhawani Somani
What kind of margin improvement would it bring this… [Speech Overlap]
Chiranjeev Singh Saluja
About 100 basis points to 150 basis points in EBITDA.
Bhawani Somani
100 basis points to 150 basis points. And then could you name any other company like any other competitor which are also into this aluminium frame manufacturing?
Chiranjeev Singh Saluja
There have been quite a few announcements made by module manufacturers, which is I think available in public domain.
Bhawani Somani
Okay, sir. Thank you.
Operator
Thank you. The next question comes from the line of Sushrut Gokhale from Caprize Investments. Please go ahead.
Sushrut Gokhale
Sir, as you were replying to a previous participant that due to the increased volatility, we are not going into too much long-term contracts. So, this current order book of say INR6,200 crores. So, is it safe to assume that this is executable over next six, eight months? Or what is our typical order execution timeline?
Chiranjeev Singh Saluja
So, this particular order of INR6,200 crores is going to be about around 10 months to 12 months.
Sushrut Gokhale
Okay. And also, is there any seasonality like H2 strong?
Chiranjeev Singh Saluja
No, we don’t have any seasonality as such.
Sushrut Gokhale
Okay. Thank you.
Operator
Thank you. The next question comes from the line of Dipesh Sancheti from Manya Finance. Please go ahead.
Dipesh Sancheti
Hi, I just want to know how much is the capex in terms of monetary? How much capex are we doing? And how are we going to fund it?
Chiranjeev Singh Saluja
So, I think all the capex which we are doing apart from the one, we have announced today, it was all in the RHP. The 1 gigawatt TOPCon cell line which is coming up in Q4 ’25 is INR670 crores with 75% of net and 25% equity. The 4 plus 4 gigawatt is INR3,200 crores of project cost. Again about 66% debt and the rest has come from the IPO proceeds. The INR230 aluminium will be again 75-25 debt to equity.
Dipesh Sancheti
Okay. And now we have mentioned that we have an order book of around INR6,000 crores. And our run rate every quarter is around INR1,500 crores. So we have approximately a year of orders. Is the company comfortable with this or in future are we looking at 1.5 years or 2 years of orders? Is that the kind of — what is the comfort level for the company?
Chiranjeev Singh Saluja
So, there is also a pipeline and with the new cell line getting commissioned in March next year, we will be closing further orders in the next three to four months.
Dipesh Sancheti
Okay. And if I can squeeze in a question about the US expansion. With the change in government, I mean with Donald Trump coming into this and everybody knows how his outlook towards solar is. Do you see any potential risks or is it covered?
Chiranjeev Singh Saluja
So, we really do not know. It is a wait and watch situation. There have been statements made earlier, but I think most of them were during the political rallies. And if you look at the change in statement on the EV cars, what was made earlier and what is made now, there has been a total turnaround. And if you look at the module manufacturing facilities which have come up in the US, around 30 gigawatt of manufacturing has come up. Majority of them have come up in the United States. So, you will see that it will be difficult for them to turn around on policies, but we just want to be making a wait and watch kind of situation. And we are not really dependent on the US market in any case, but as it progresses, we will take steps.
Dipesh Sancheti
How much capex have you already done in there?
Chiranjeev Singh Saluja
Nothing. That is what I said. It is a wait and watch. We have already signed agreements and capex spend has not happened. We are just looking at identifying locations for the plant.
Dipesh Sancheti
Okay. Thank you so much.
Operator
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the call over to the management for closing comments. Over to you, sir.
Chiranjeev Singh Saluja
Thank you. Thank you so much. I would like to thank all the analysts and the companies which joined in and the valuable time for today’s call. And we look forward to having more fruitful interactions with all of you and we look forward to more calls in the future. Thank you.
Operator
[Operator Closing Remarks]