Ruttonsha International Rectifier Ltd (BSE: 517035) Q3 2026 Earnings Call dated Feb. 17, 2026
Corporate Participants:
Unidentified Speaker
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
N Ramesh Kumar — Managing Director, Chief Executive Officer
Analysts:
Unidentified Participant
Abhishek Savant — Analyst
Sandeep Rao — Analyst
Prateek Giri — Analyst
Presentation:
operator
Sam. Sa. Sam. Sa. Sam. Ra. Sa. It. Sa. Ladies and gentlemen, good day and welcome to earnings conference call of RIR Power Electronics limited Arranged by Veritas Repetition. At this moment all participant lines are in the listen only mode. Later we will conduct a question and answer session at that time. If you have a question, Please press star n1 on your touchstone keypad. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Sawant from Veritas reputation. Thank you. And over to you, Mr. Sawant.
Abhishek Savant — Analyst
Good morning everyone. On behalf of RIR Power Electronics, I extend a warm welcome to all participants joining us for the Q3 FY26 earnings conference call. We appreciate your time and interest in joining us today to discuss the company’s performance for the quarter ended December 31st, 2025. We truly value your continued interest and support. As you are aware, the financial results for the Q3 FY26 has already been disclosed to the stock exchanges and are also available on our website. Accordingly, today’s session is designed to provide a deeper insight into our business strategy, operational progress, industry outlook and the company’s long term value creation journey.
Following the opening remarks by our management, we will open the floor for a Q and A session. Kindly keep your questions concise and relevant to allow broader participation. Before we begin, I would like to remind you that some of the statements made today may be forward looking in nature. These are based on our company’s current expectations and are subject to various risks and uncertainties that that could cause actual results and outcomes to differ materially. Joining us on the call today are Mr. Harshad Mehta, Non Executive Chairman, Mr. N. Ramesh Kumar, Managing Director and Chief Executive Officer and Mr.
Rankit Shah, Financial Controller. With that I would like now to hand over the call to to Mr. Harshad Mehta, our non Executive Chairman for the update on the financial performance and the company’s over company’s overview. Over to you sir.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
Thank you Abhisheki. Good morning everyone. Once again I thank all of you for joining us today for our IR Powers Q3 FY36 earning call. I am Harshan Mehta, non Executive Chairman at RIR Power Electronic System and it is my pleasure to walk you through company’s performance for the quarter 12-31-2025.
operator
I’m sorry to interrupt you. I’m sorry to interrupt you. Your audio is not clear sir. Can you use your speaker, sir? Ladies and gentlemen, kindly stay connected while we reconnect the line for Mr. Harshad Mehta. Ladies and gentlemen, Mr. Harshad Mehta has been reconnected over to you, sir. I’m sorry sir, your audio is still not clear.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
Michelle, I think there is some problem. With Mr. Mehta’s line.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
I would say if Ankit Shah will. Just take the numbers shorter. Please, please. Please go ahead, sir.
Unidentified Speaker
Yeah. Thank you. Mr. Mehta, I would like to clarify that we are discussing on the historical numbers. Please do note that anything said on this call that reflects the outlook towards the future would be construed as a forward looking statement. Having said that, now we’ll just take you through the Q3 numbers and 9 month result numbers. I’ll begin with the performance for the Q3FY26. Now the revenue stood at 20.27 crores while the EBITDA for the quarter came at 0.86 crores. Consequently the PAT stood at 0.44 crores while the earning per share stood at 0.06 per share.
Now in comparison to that the performance for the nine month FY26 is as follows. The revenue for the nine months stood at 66.92 crores versus 59.74 crores. For the same corresponding period EBITDA came in at 8.11 crore as compared to 7.95 crores. Consequently PAT stood at 5.33 crore as compared to 5.73 crores. Whereas earning per share stood at 0.74 per share as compared to 0.75 per share for the corresponding nine month period. Our Q3 numbers reflected a temporary moderation arising from realignment of certain orders due to customer driven scheduling changes, increase in material consumption, cost and provision for cost due to introduction of new labor laws.
Now I will hand over to Mr. Mehta to share the other business and development updates over to you, Mr. Mehta.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
Thank you. Ankit, is it better?
Unidentified Speaker
Yes.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
Okay, good. Thank you. I’m sorry about my audio issues here. But I’m glad Ankit covered the detailed workings and so forth. I would like to at least welcome, first of all, welcome our new MD and and CEO Ravish Kumarjee. He is present, he has worked, he will give his background. But he is very well respected, very well known and I am very happy and excited to have him lead RIR to new phase of growth. And I just want to give you an update on the existing businesses. First of all Odisha, we are very close to getting cleanroom started by about February end or mid March.
Most likely February end. Even though while we are constructing the clean room this fiscal year we have generated about 101 crore of revenue between second quarter and third quarter. Last quarter we did our first international shipment to a very reputed global and there’s a sample order of $20,000. Once that is evaluated, we expect volume orders from Richardson Electronics which is one of the largest and the most reputed distributor. From Halol perspective we are really surpassing records. But in a commercial sense we provided and we tested almost 10 megawatt rectifier for base power for rocket launcher and 10 megawatt.
I know financial people like zeros 10 to the 6 watt. Compared to our car battery, our car chargers and car batteries those are about one kilowatt. And we are talking 10 megawatts is about 10 to the seven times what the car power is. Secondly, we are also very close to finishing up a unique high voltage capacitor discharge switch for Indian army which is about 10,000 volts and 200,000amps. So as you can see we are, we have a core expertise that we have been saying in terms of medium and high power and that is proven because of the fact that army as well as the Indian Railways BHEL and so forth do rely on us.
And we are the only company in India to be able to provide this component. We are by the way replacing ABB from these applications. So we are certainly making progress. This product that we make has a longer incubation cycle but we are second to none technically and we are proving that we can provide the power. We can provide the product to global standard or even better. Now I want to introduce Mr. Ramesh Kumar. We have been discussing with him for at least two years. But I am glad he is finally on board. Effective February 11th.
He is a MD and CEO of RIR Power Electronics. So Rameshwee, please share us your vision. Thank you.
N Ramesh Kumar — Managing Director, Chief Executive Officer
Mr. Mehta, I am privileged to take up this role as the MD and CEO of rir. I am sure some of you may be knowing from my CG time as well as my very short CG with the Deficient Engineers Limited. So I joined RAF or Limited on 11th as MD and CEO. And just to give you my background, I am an analytical engineer from Mnmit Allahabad. Passed out in 1984. I started my career as graduate engineer training in those days. Then the GEC of India Limited which is largest electrical equipment manufacturer. And after having worked for almost about six years then I moved to Easy power.
operator
I’m sorry to interrupt you. So there is a static on the line. I would request you to kindly use your handset with the speaker. So because headphones are creating those Static.
N Ramesh Kumar — Managing Director, Chief Executive Officer
I believe there is no headphone. Actually I think there’s some work and.
operator
There is airy disturbance. Okay, okay. Understood sir. No problem. Carry on.
N Ramesh Kumar — Managing Director, Chief Executive Officer
That’s it.
operator
Yeah.
N Ramesh Kumar — Managing Director, Chief Executive Officer
So then I joined Crompton Greece Limited in 1990. And then first 20 years I was in sales and marketing which major roles in different locations headed some branches and the product line as a national sales head. And then from 2010 onwards I’ve been handling the P and L responsibility for various products. Started with thumbs and then lighting and then motors and then also in fact in consumer also I was in before we hyped up. And then the major contribution is when in 19. Sorry 2019 August company was declared a Squad 8. And then I there many senior leaders left the organization.
I was heading the entire army organization reporting to the. My challenge was to keep the company running without much working capital without allowing it to go to nclt. So that was a challenge which I have achieved. And then Murzapate took over. So thereafter what has happened? There is a book called the great revival by Matarajan Srinivasan. And also part is written there about how we managed during the difficult times. So that’s my brief background. After. After I left CG I joined company called Efficiency limited at Nagpur for one year. I was there almost when I thought it was basically a mechanical engineering company. So being an electrical and electronics I was interested in coming back to my subject relevant subject. So that’s how I took up this responsibility. And I look forward to leading RAR into the next phase of growth and set new benchmark work performance and across the sector. Thank you very much over to Mr. Mehta.
Harshad Mehta — Chairman, Non-Executive – Non Independent Director
Thank you Ramesh. We are really really appreciate and it’s only been two years. But we certainly hope you will never have to see what you faced at CG in terms of difficulty. I think we are really poised for growth. We have a good team. We need the leadership. And I believe we are in a strong strong hand in terms of leadership perspective. So I’m looking forward to a good time ahead for shareholders as well as investors and employees and all of us.
N Ramesh Kumar — Managing Director, Chief Executive Officer
Thank you sir.
Questions and Answers:
operator
Thank you very much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may please press star and one on the touchstone pole. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and One to ask questions. Anyone who wishes to ask questions may please press star and one. Now. The first question is from the line of Sandeep Rao from Canada Bank Securities.
Please go ahead.
Sandeep Rao
Thank you Mr. Mehta and welcome Mr. Ramesh Kumar as MD and CEO of our company. Sir, I have few questions. Last few one year back we have developed many new products for different industries like railways as well as coal mining, defense and other things. What is the concentration? Which products are we going to concentrate? That is question number one. And question number two is regarding your bank. I up whether last phone call you are told that you are looking for a bank higher for working capital as well as a term loan. So whether that has been finalized.
Number three is regarding that electricity and other things were there where you are selling high tension wires and other things are required whether that has been completed. And number four is regarding ISM2. Where do we stand regarding ISM2? And finally regarding NFP listing. What is the status? Thank you.
Harshad Mehta
Yeah, thank you for all reminders for all the important issues that we are working on. And so currently in the line in terms of the nsc. So I start from the back. We had quite a few things that kept us busy. Specifically the stock options plans and so forth. That was we were able to bring in Ramesh Kumarji. So there are some priorities. But NSE is equal priority and that’s our next action to finish it by March 31 as soon as we possibly can. In terms of the power we have been fighting. I was in Bhubaneswar for two days.
A week ago we had a conference call. They changed some changes in the organization. And now we do feel that we have action oriented people and they have committed at least. We requested the power to be all on by March 31st and they will give us a deadline. They’re going to try for it and they will give us a deadline by this Friday. So we can certainly post it on the website or make you aware of it what it is we are pushing for March 31 because by that time both our reactors will be on ground and we should be able to start qualification for the epi.
Regarding the bank we are moving forward. We have been discussing with two banks. I won’t name them but we are about 90, 95% done. I would ask Ankit if he’s any update.
Unidentified Speaker
Yeah, so basically we are expecting in principle approval this week which will be followed by a committee approval which we anticipate will take around a couple of weeks more. So maybe by first week or second week of March we should be able to get a positive response and tie up for the debt portion with the banker.
Harshad Mehta
Okay, your question about the priorities. We certainly have niche product but if you look at it overall from last at least year and a half plus there is a significant push towards Self reliant India. And what that matters is we will be keeping pushing for infrastructure intensive project where we will gain the volume top line as well as bottom line. Both mining, we will work with Kirloskar or other people. As an OEM supplier we are working with Jindal Steel in terms of resolving their power quality issues which is causing the magnetization effect. We keep on doing all of those but at the same time our product would be applicable to all of the industries which are power sensitive as well as reliability sensitive.
So from that perspective, defense, aerospace, as well as grid and renewables. These are the four major structures including railways, our core business too. So those five will keep on following. Okay. We would like to know from Mr. Ramesh Kumar what is his vision for this company and where does he think what are the challenges he thinks he will face.
Unidentified Speaker
See more than you know, challenges are vision. Right now it is just in three days. I, I, I cannot drive with that. But definitely I can tell you that there are. I have taken three targets for internally and three targets externally. Externally is strengthening my sales organization first and then enhancing the reach and strengthening the inquiry pipeline. Converting them into orders and identifying new applications, new products and new ideas of businesses. And then also brand building and a visibility of our product. Though we have a lot of good technology, I don’t think it is very well visible in the industry and participation in exhibitions that will give us some edge into visibility.
Also other than the social media and also the customer connect, I think the relationship building with customers, vendors and the employees. So that is my three priorities as far as external is concerned internally more than is operational excellence. First we have to see what is the capacity capacity mapping and bottleneck, how to overcome the bottleneck operations and then improving the productivity. And also I would also like to see the IT infrastructure for the better control in the organization as well as faster response to the customer. And obviously my third priority will be looking into research what is going to happen.
What’s happening there? Hope I answered your question.
Sandeep Rao
Yeah, yeah. Sir, when can we expect the opening of the factory? I mean as a commercial production. When can we expect the date by when we can you will be announcing to exchanges or anywhere.
Harshad Mehta
So yeah, so we have. I’m assuming you are talking about Boon national facility.
Sandeep Rao
Yes, yes.
Harshad Mehta
Yeah. And when we met the government people last week as I mentioned I told them within 90 days once we get the power we will have the commercial production started at Boom national facility. Okay.
Sandeep Rao
So you are telling that to the car the once the electricity is given after that 90 days is required.
Harshad Mehta
Correct, Correct. Because I can control my what I need to do. I cannot control electricity except push government. That’s why I’m pushing.
Sandeep Rao
Sir, in your opening remarks you told that you have already started production of around 1 crore. So can you elaborate whether in the coming period for this Q4 you will be still again producing some bonature project?
Harshad Mehta
Yeah. So if you remember the RIRI received the IP and then what we are trying to do so that we don’t waste time and we get the visibility in RIR name in the product that we are making. Making it at a contract manufacturer in Taiwan and Korea under RIR’s name with RIR IP and selling it through RIR as our customers. So first first shipment was for Indian Navy and second shipment went to this international distributor. Okay.
Sandeep Rao
Okay. Okay. Sir, I think I will come back once. I think others will be in the line. So I’ll come back with further questions. Thank you.
Harshad Mehta
Sure. Sure.
operator
Thank you. A reminder to all the participants that you will please press star and one to ask questions. The next question is from the line of Pratik Giri from Shublap research. Please go ahead.
Prateek Giri
Hi. Hi Mr. Mehta. Greetings. I hope I am audible. Mr. Mehta, my first question is on you know the little bit delay in the project. I understand there has been a lot of back and forth from the government in terms of disbursement and power and other issues. I just wanted to understand, you know, are we receiving further tranches of money which OSA government is supposed to give us and what is the current utilization of the money which we have received earlier? Probably 32 crore we had received. So how has been the utilization of that money so far?
Harshad Mehta
Okay, sure. So I think Ankit can answer that question. But I can also tell you that the first we were once they got the approval we had spent about 64 crores before the first disbursement. So 32 crore was half of 64 crore. That’s that money that we already had spent on reactors, clean room infrastructure and so forth as well as customer vendor advances and things like that. And since then we have also received second trench of I think 50 total for 52 crore. So we got 26 crores from Odisha. Can you please confirm? Ankit, that’s the right sir.
Prateek Giri
Okay. And can you. Can you give the response on the nature of expenses where that funding is going?
Unidentified Speaker
So on the nature of expenses basically the entire pool of funds is used towards purchase of equipments for CAPEX purposes only. It is not for any operational expenses and stuff. And this money is passed in an escrow account which is monitored by the government authorities as well. And the entire fund is used towards CAPEX for purchase of equipments and tools and so on. Hope this answers your question.
Harshad Mehta
Yeah.
Prateek Giri
Yes Ankit, I was just wondering. So we have received now 52 crore, is that right? We received 32 earlier and another 20 has been received. Correct.
Unidentified Speaker
So 26 crores we have contributed to an escrow account with the same contribution has been matched by the government which makes it to total 52 crores.
Prateek Giri
So should I add up 64 and 52 or this 52 is a part of 64 only. I’m sorry to press on it.
Unidentified Speaker
Want to calculate total capex it will become 65 lakhs 52.
Prateek Giri
Okay, got it. So probably two tranches have been received from the government.
Harshad Mehta
And. And. And half of that we have received. And third will come on our. Our packaging part about close to 100. 100 plus crore total. So we’ll get 50% of it.
Prateek Giri
Understood? Understood. Mr. I’m sorry to press again. I understand. You know working with government is not that easy and yet we are moving the posts probably every 15 days. But how confident are you this time to inaugurate the clean room facility by month end or mid March? Is it still anticipatory or. We have some ribbon cutting preparation going on.
Harshad Mehta
A clean room would be done by end of February or mid March where I am the only question which we are pushing it almost every other day with the principal secretary as well as chief Secretary of state of Odisha and they both are now in the position and new and they. They’ve been working. We worked with them before in the previous government as well. So they are promising us because we RIR facility is one of the flagship showcase for state of 45 as well in terms of attracting new industries.
Prateek Giri
Right? Got it. Got it. After the clean room is ready how much time will it take for the epitaxy reactors to get installed and at least you know kick start the production, at least the experimental batch.
Harshad Mehta
So the qualification period is about 60 days and then the commercial production about 30 days after that.
Prateek Giri
Okay, so let’s say it’s by 15th of March. The clean room is ready. We should do 90 days plus the 15th of March, the experimental production should start.
Harshad Mehta
The assumption is that we get the power by that time. Correct?
Prateek Giri
Right. Right. Right, Right. Got it. Got it.
Prateek Giri
Rameshi, my next question is to you. Thank you Mr. Mehta, your words are always helpful. Remi my firstly congratulations on joining RAR Power. Probably long awaited. But. But, but, but good so far. Rem, I was wondering, you know the top two three priorities. I’m sure this one day, one week period is not enough. I understand but sorry to be restless here. But in terms of hiring, in terms of you know the product roadmap or in terms of even the shop floor reorganization, what are the top 23 priorities? You have been able to 00 in so far for both Halol and probably both for Odisha also.
If you can start. Yes.
N Ramesh Kumar
Hi. I just now said that I have taken three three tasks at a time. Three for internal and three for external. As I said.
Prateek Giri
Okay.
N Ramesh Kumar
First target the organization and reassigning the responsibility and enhancing our reach to the customers as well as increasing the NPV pipeline so that we can convert some of them. So some of them as our orders and also identifying new applications and there are some products which we have enhanced to other customers. So wherever we are selling, we are selling only those customers. So maybe similar kind of customers are there. So that is where your applications and in case customer event will come up with some new products Also they will be asking so we will be entering those products and we are also looking at some new avenues where we can enhance our top line.
So of course the brand building and I also said that customer connect has to be increased. So internally as you write the operational excellence is my top of my priority because mapping the capacity, overcoming the bottleneck operations and then the productivity so that we are ready and when we announce our market reach if the order starts coming between a patient deliver also on time. So that is the another of course to get a better control over I need to relook into the IT infrastructure and see what can be done. Of course as I said right now I’m not focusing too much on that because Mr.
Is involved and there so government people again and the contact it will take some time. So I got and then I will be keeping keeping up, keep getting the update on that and whenever my support is required, I’ll be extending the same.
Prateek Giri
Got it? Got it. Understood. Rameshi. The second question I wanted to understand is. You know you have been in the industry probably for the last right out of college because you have been a part of the industry. If you look at Our halol business we have somewhere odd 100 crore, you know give or take 1900 crore top line. Now let’s say if I try to understand your perspective on FY27 and FY28 how much we can scale this business from these current levels because I’m sure in the overall scheme of things the higher revenue, the legacy revenue of our business is still very small and we can probably, I mean under your leadership we can expect a little bit faster growth in the coming times.
So what is that north car which is there which you have kept for yourself that okay Hallowor at least should do this much for us in terms of revenue.
N Ramesh Kumar
Definitely in the last four days of my interaction with the people and these products and then where they are selling, what they are doing. I have something in my mind but I don’t want to drop those numbers within three days or four days not be right on my part. But definitely maybe next call I will definitely tell you what is our plan for FY27 and FY 2018. But as you rightly said I have, I have seen that the kind of contact which I have, which I work in the industry, some of their industries, industry people are common for these products also.
So I to all of them to promote these products at this point of time if I have to answer your question correctly know what is PDB FY 2010, FY28 will not be right on my part.
Prateek Giri
No no. We will certainly wait for the clearer guidance to emerge. Ankit, I have a few suggestion. You know if you can publish investor presentation also with little details about the project. You know the timelines and since we are already kicking 1 crore of revenue from the silicon carbide contract manufacturing thing I think that also will be helpful if that can be put there. Not a very lengthy slide but yes some some indication to investors of the recent updates on it. I hope that won’t be a big task. I think sir just to keep the investors abreast.
We are all very excited about the Odisha project Mr. Mehta. And that was the purpose of this ask nothing, nothing more than that. I will join that with you. Thanks a lot Mr. Mehta. Thanks a lot. I’ll join that with you.
operator
Thank you. Participants, you may please press star and one to ask questions at this time. The next question is from the line of Harish Shiat an individual investor. Please go ahead.
Unidentified Participant
Hello.
Harshad Mehta
Yeah.
operator
So please proceed.
Unidentified Participant
I’m audible.
operator
You’re audible? Yes.
Harshad Mehta
Good news to the team.
Unidentified Participant
Good afternoon. Thank you. Thank you for the opportunity. I’m Attending this call for the first time. So pardon me if I ask some repetitive questions. First is I endorse the earlier participants view that we should have the presentation for the better understanding of the company. My question is about the Odisha factory. I understand that 64 crores you already spent that by the second part of the 52 crores are in our bank. I want to understand how much of 52 crores have been actually spent for the project.
Harshad Mehta
All of it. What I have is because all the CapEx. Yeah the CapEx part, the. The entire. I don’t know the what the balance is right now but we have, we all of that funding is going into CapEx, the clean room as well as the advances to the customers. For example second reactor we already have given the advance. The reactor should be coming in around March 15th as well. But maybe Ankit can give the number in terms of how much has been spent so far. Yeah Ankit. Hello.
Unidentified Speaker
Yeah, are you able to hear me?
Unidentified Participant
Yeah, I’m.
operator
Yes sir.
Unidentified Speaker
So we have spent roughly around 4345 crores out of the 52 crore kitty. And we have CAPEX plan for the balance as well. Post which we are lining up the bank debt financing which will contribute to this particular escrow which will be an equal contribution will be matched by the government as well. And with those funds we will be able to close your. For phase one.
Unidentified Participant
What is the total capex for the.
Unidentified Speaker
First phase it is roughly around 225 crores.
Unidentified Participant
So half will become from the government, right?
Harshad Mehta
Correct. Okay. Okay.
Unidentified Participant
And for the second phase any line. Anything tied up. What is the amount. And any, any plan for that.
Unidentified Speaker
So phase two capex is 395 to 400 crores and that lineup will be. We are currently in process but we will tie up that once we have this particular bank financing done for phase one then phase two.
Harshad Mehta
Yeah, I’m answering your question. We have been, I have been looking at the equipment suppliers getting quotations and trying to finalize the equipment that we will need for phase two.
Unidentified Participant
So phase two also will be co financed by the government.
Harshad Mehta
Yes. Okay.
Unidentified Participant
Okay. But what about the power? What is the actual problem for the power over there.
Harshad Mehta
Right now there are the issue of power is. I. I know power quality and reliability is very important for semiconductors because any fluctuation in the power, any fluctuation in the power can result into the entire batch being redone or restart. So it is offering us, the state is offering US power from 11kV line and we are requesting, we are requesting power from 33kV line because the variations and the purity is much higher at 33kV line.
Unidentified Participant
Okay, so this was not analyzed before the taking the project over there?
Harshad Mehta
No, no, we already told them year and a half ago that we need 1 megawatt of power from 30 from 33kV line. But government change and the, and the people changing it at their locations and so forth. Even though it’s supposed to be single point, single window clearance, we are, you know, we are struggling but we understand that we need power. So we have to work with the system rather than complain about it so softly.
Unidentified Participant
Okay, what is the potential revenue from the Phase 1 production at Optimum level?
Harshad Mehta
That number.
Unidentified Speaker
Yeah, give me a moment. Maybe we come back to you on this particular question.
Harshad Mehta
Okay, no issue. Thank you.
Unidentified Participant
Thank you very much. And I would appreciate if even if now also you can prepare one small presentation and upload on your BAC website and your website so that will give more visibility to the investor who want to invest into your company. And all the best to Ramesh and I hope that he do the miracle for our company.
Harshad Mehta
Thank you.
Unidentified Participant
Thank you very much.
N Ramesh Kumar
Thank you.
operator
Thank you. Thank you sir. Participants, please press star and one to ask questions. The next question is from the line of Pratik Giri from Shublab Research. Please go ahead.
Prateek Giri
Yeah, thank you for the opportunity again. Ankit, I just wanted to understand, you know, about our conversation with the banks for the debt. So I understand these amounts involved are little large and. And given our current balance sheet probably there must be some negotiation and persuasion might be going on. I was just wondering how has been the conversation going on? Are they asking for collateral or with Orissa government backing itself is enough for them to disperse the loan. If you can throw some light there. Because I think we have been on this pursuit for the past six, seven months and nothing has materialized so far.
So if you can help us understand how has been the conversation on this part.
Unidentified Speaker
Sure. So basically we were in negotiations earlier with another banks, another banker and right now the banker we are in conversation with or in talks with, they are quite positive to move ahead with this particular proposal. And I. So your point is correct. They were facing certain issues in terms of collateral, but internally they have been comfortable and they would want to partner with us for this particular financing arrangement. So we are moving on a positive direction currently and hopefully we should be done by first week, second week of March.
Prateek Giri
Got it. I’m sorry, I just forgot. The amount we are currently negotiating for, is it 79 crore or 100 crore?
Unidentified Speaker
Currently we are looking for 70 crores.
Prateek Giri
Okay. And that’s all for phase one.
Unidentified Speaker
Correct. And so basically that would be used for phase one and an equal contribution will come from the government which will help us complete the phase one.
Prateek Giri
Got it, Got it. And how much will be the moratorium period to avoid the interest payment or we’ll have to pay interest right from day one.
Unidentified Speaker
So we have sort of monitorium period. But maybe that would be quite a lot of intricacies and detailing. So maybe once we have approval in place and sanction letters, maybe we can discuss that.
Prateek Giri
Understood, Understood. But you are hopeful that probably by March mid this also should get resolved?
Unidentified Speaker
Absolutely.
Prateek Giri
Got it, Got it, got it. No, this is helpful. This is helpful. Thank you. Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Abhishek SA for closing comments. Thank you. And over to you.
Abhishek Savant
Thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in RIR Power Electronics. As always, we remain committed to transparent communication and delivering long term value to our stakeholders. In closing, on behalf of the board of directors and management, we thank you all for your participation in this call. We remain focused on operational excellence, financial prudence and long term value creations. Should you have any further questions, please feel free to reach out to us. We look forward to engaging with you again in the near future.
Thank you and have a great afternoon and stay safe.
Harshad Mehta
Thank you. Thank you all. The organizers appreciate it.
operator
Thank you sir. Ladies and gentlemen, on behalf of RIR Power Limited and Veritas Reputation, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.