Sarda Energy & Minerals Limited (NSE: SARDAEN) Q2 2025 Earnings Call dated Nov. 18, 2024
Corporate Participants:
Vinita Pandya — Associate Vice President – Stellar IR
Manish Sarda — Deputy Managing Director – Sarda Metals and Alloys
Padam Kumar Jain — Director and Chief Financial Officer
Analysts:
A.M. Lodha — Analyst
Aman Madrecha — Analyst
Digant Haria — Analyst
Pradeep Rawat — Analyst
Balasubramanian A — Analyst
Rajesh Bandari — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q2 and H1 FY25 Earnings Conference Call of Sarda Energy & Minerals Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Vinita Pandya. Thank you, and over to you, ma’am.
Vinita Pandya — Associate Vice President – Stellar IR
Thank you, Steve. Good afternoon, everyone, and thank you for joining us today.
We have with us today the senior management team of Sarda Energy & Minerals Limited; Mr. Manish Sarda, Deputy Managing Director, Sarda Metals and Alloy; Mr. PK Jain, Director and CFO; and Mr. Nilay Joshi, Head Corporate Finance, who will represent Sarda Energy & Minerals on the call. The management will be sharing the key operating and financial highlights for the quarter and half year ended September 30, 2024, followed by a question-and-answer session.
Please note this call may contain some forward-looking statements, which are completely based upon the company’s beliefs, opinions and expectations as of today. These statements are not a guarantee of the company’s future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made.
I now hand over the conference over to Mr. Manish Sarda. Thank you, and over to you, sir.
Manish Sarda — Deputy Managing Director – Sarda Metals and Alloys
Good afternoon, ladies and gentlemen. Welcome to Sarda Energy’s investor con-call on the results of the quarter two.
I hope you had a chance to go through the results, press release and presentation, which has been uploaded on our website and websites of stock exchanges.
Economies across the globe continued to face macro headwinds. China announced another policy stimulus to boost the economic growth. However, that also appears to be short-lived. USA reduced policy rates twice in last two months after three years. RBI has also changed its stance to neutral. As such, we may expect reversal of interest rate increase sooner than later depending upon the inflation data. The intensified conflict in Middle-East remains a concern for energy prices and global trade. Formation of a new government in USA will also have its impact on the geopolitics and geo-economics, the effect of which is broadly expected to be positive for India.
On August 21, ’24, we successfully completed acquisition of SKS Power Generation Chhattisgarh Limited, shortly called SKS under IBC route. SKS is having two operating thermal power-generating units of 300 megawatt each in Raigarh District of Chhattisgarh. SKS has been amalgamated with our company with effect from September 1, 2024. The result for the quarter includes result of SKS Power plant also with effect from August 22, 2024. One of the two power generating units was under shutdown from September 1, 2024 for overhauling after operation for five years. which has resumed generation from October 12, 2024. As such, results of acquisition will truly start reflecting from next quarterly results only. Unsuccessful applicants had challenged the NCLT’s approval of our plan before NCLAT, appellate forum. NCLAT has dismissed their appeal. Now they have challenged the approval before Supreme Court.
During the quarter, we reduced production of steel billets and downstream products to sell power on commercial considerations. One of five furnaces at Raipur was under shutdown from September 1 for modification, which restarted from November 1, 2024. We recorded highest-ever quarterly generation of captive thermal power. Hydropower generation recorded 8% growth year-on-year on back of better, but delayed monsoon. Generation in the third quarter so far was also better when we compare year-on-year. Detailed operational data is available on our website and in press release uploaded on the websites of stock exchanges.
We have received consent to operate for increase in the coal mining capacity of Gare Palma IV/7 from 1.44 million tonnes to 1.68 million tons. We have also received environmental clearance for increase in the capacity of coal washery from 0.96 million tonnes to 5.2 million tonnes in two phases, initially to 1.8 million tons and then to 5.2 million tonnes. We have also received Stage 2 forest clearance for Shahpur West coal mine. We are taking steps for execution of mining lead. Mine opening work will start [Technical Issues] mining lease. We expect to get mine opening permission during current quarter. We expect to start production of the coal from this mine within two years from mine opening permission. Work for 50 megawatt captive solar power project is progressing as per schedule. The plant is scheduled to be operational by the end of current financial year. We are in the process of preparation and approval of detailed project report and mining plant for Bartunga Hill coal mine in joint-venture. 25 megawatt Rehar hydro power project has been installed and is ready for trial run. The Chhattisgarh government has announced incentives in its recent industrial policy to promote the hydro power sector in the state. The Rehar hydro power project will also be eligible for the incentives.
The waste utilization project in Visakhapatnam is progressing as per schedule and expected to be operational before end of the current financial year. The order for replacement of 30 megawatt TG set has been placed with Bharat Heavy Electricals Limited and work on the project is progressing as per schedule. The plant will be operational in mid of financial year 2026-’27.
The company achieved consolidated quarterly revenue of INR1,159 crores in quarter two FY25 as compared to INR926 crores last quarter and INR1,001 crores in quarter two of previous year. Provision for income tax includes the effect of removal of indexation benefit on land in the current year tax law. Consolidated profit-after-tax was INR195 crores as compared to INR199 crores in last quarter and INR141 crores in quarter two of the previous year. The result for the quarter includes result of IPP of 600 megawatt acquired during the quarter. True effect of the acquisition will start reflecting from quarter three. Acquisition-related costs have been booked as expense in our books as per Ind-AS requirement. On account of increased import and reduced export of the steel, the prices of steel products remained subdued during the quarter. Post announcement of the policy stimulus by China, some improvement was recorded in the steel prices, which appears to be so slim [Phonetic].
During the quarter, we spent about INR1,950 crores on acquisition of SKS power plants, in addition to the normal capex on the ongoing projects. Post-acquisition of SKS, our consolidated debt including for working capital stood at around INR1,300 crores. Long-term loans repayable within next one year is less than INR200 crores. The company holds strong liquidity with cash and liquid investments of more than INR1,500 crores as of September 30, 2024, which is in addition to the loss given as part of treasury investments. The debt-to-EBITDA is below 1 times, which will go down further as the effect of 600 megawatt IPP starts reflecting in the EBITDA.
During nine months of calendar year 2024, global steel production declined by 1.9% to 1,394 million tonnes. China recorded decline of 3.6%. Bucking the global trend during the same period, India recorded growth of 5.9%. Due to slowdown in the domestic economy, Chinese steel exports remained at elevated level. Aggressive exports from China due to subdued domestic demand weighed on the global steel prices. China exported 84 million tons in nine months, recording a growth of 21%. Many countries have invoked safe guarded measures against Chinese imports. In absence of safeguard measures, steel imports in India recorded sharp jump of 44.5% quarter-on-quarter and 43% to 0.2% year-on-year, whereas the exports fell 14.8% quarter-on-quarter and 29% year-on-year. India was net importer of steel of about 1.9 million tons in the quarter. The EU imposed additional safeguards to moderate high steel imports.
Ferro Alloys prices corrected back to previous levels after sharp jump in June on the fear of shortage of raw-material due to disruption in Australia. Merchant power prices remained subdued due to above-average rainfall during the quarter. Domestic crude steel production in quarter two of current financial year fell marginally by less than 1%, but grew 2.7% year-on-year to 36.23 million tons. Domestic finished steel consumption grew by about 4.2% quarter-on-quarter and 11.6% year-on-year to 37.09 million tons. Ferro Alloys exports has been stable. During the quarter, we exported about 28,200 metric tonnes of Ferro Alloys worth INR251 crores in quarter two of current financial year as compared to 32,500 metric tons worth INR273 crores last quarter and about 25,500 metric tons worth INR189 crores in the corresponding period of the previous year.
India is the fastest-growing major economy on the strength of its domestic demand and demography. The reversal of interest rate cycle will further strengthen competitiveness of the industry. Government is also taking safeguard measures to check steel imports. China is also pushing its economy through policy initiatives. The fall in fiscal deficit provides legroom for increased government capex. All this should augur well for Indian steel industry. Good credit offtake and strong capital market, particularly primary issuances indicate rise in the private capex. That should boost capex heavy projects. The real-estate sector has also recorded healthy bookings creating demand for steel. The effect of 600 megawatt thermal power plant acquired by us will start reflecting from the current quarter. This plant will give a major boost to the top-line and bottom-line of the company.
That concludes our performance and outlook. We now open the forum for question-and-answer. Thank you all the participants.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of A.M. Lodha from Sanmati Consultancy. Please go ahead.
A.M. Lodha
Hello Mr. Jain, am I audible, sir?
Padam Kumar Jain
Yeah, you’re audible.
A.M. Lodha
Sir, congratulations for the good set of numbers as well congratulations to the entire team of the management for successful takeout of SKS Power sir. I have got two questions, sir. One first is relating to SKS Power and second is relating to coal. Now SKS Power as you had mentioned in your — this presentation that the NCLAT appeal had gone in favor, but the agreeable party have gone in the Supreme Court. So what is the legal opinion of our legal lawyers for this acquisition and this Supreme Court matter which you had.
Padam Kumar Jain
When it has been consent twice by NCLAT is a reasonable assurance on our strength of the case.
A.M. Lodha
Is it — make material difference, particularly when you have taken the position of the plant and make the payment and payment has been done to the banker and banker has disburse to the lenders, will it make any material difference in Supreme Court?
Padam Kumar Jain
It is up to the Supreme Court matter being sub-judice. I don’t think the Supreme Court will take into consideration each and every second aspects.
A.M. Lodha
Okay.
Padam Kumar Jain
Ultimately it is being — matter being sub-judice, I don’t think we can give any specific. It is up to the Supreme Court, but definitely all these factors will also be considered.
A.M. Lodha
Okay, sir. In this acquisition how much is out of 600, how much we are selling in under PPA and how much we are selling in the market in the —
Padam Kumar Jain
PPA, we have 600. We have long-term PPAs, medium-term PPA, short-term PPA and IEX all. So short-term PPA quantity goes up and down. So maybe out of 600, maybe 400 around because it is a fluctuating figure.
A.M. Lodha
Okay. What is the present rate, sir, this present rate prevailing in the exchange?
Padam Kumar Jain
Exchange also it’s — it also fluctuates again, but generally we are getting INR5 plus only, on average because it varies hour-to-hour and day-to-day.
A.M. Lodha
Whether the management has any intent to double the capacity of these plants?
Padam Kumar Jain
Let the matter first be resolved. Definitely, all infrastructure is available, appropriate steps will be taken at appropriate time.
A.M. Lodha
My second question is regarding the coal mine, sir. We have got the capacity expanded from to 1.68 and we applied for 5.2 MTPA. When we can expect to get the all clearance and when you — for this expansion of the coal mine, sir.
Padam Kumar Jain
In the first stage, we are increasing it further from 1.68 million tons to 1.8 million tons.
A.M. Lodha
Okay.
Padam Kumar Jain
We expect to get maybe by end of the current financial year or maybe in the beginning of the next financial year. Then we will go for the second leg of 5.2 million tons. So this will take some time.
A.M. Lodha
Okay, sir. Can I squeeze one more question sir, last.
Padam Kumar Jain
Yeah, sure.
A.M. Lodha
Yeah, this question is relating to hydropower, sir. Our Sikkim hydropower 113 megawatt, Rongnichu power plant in Sikkim, that we have I think commenced the commercial products last year, which is the second year running, I think.
Padam Kumar Jain
This is I think third year,
A.M. Lodha
Third year, so —
Padam Kumar Jain
This is fourth year.
A.M. Lodha
Fourth year. But just I wanted to know the status of the loans taken for this power plant and repayment schedule.
Padam Kumar Jain
Yeah. I think that we can provide you offline immediately, it will be very difficult to provide specific figure [Speech Overlap].
A.M. Lodha
I’ll send a mail to you, sir. Thank you. Thank you very much. Thank you. Thank you and congratulations.
Padam Kumar Jain
Thank you.
Operator
Thank you. The next question is from the line of Aman Madrecha from Augmenta Research. Please go ahead.
Aman Madrecha
Yeah. Hi, sir. Thanks for the opportunity. Sir, first of all, can you highlight on the total coal mix given that we are at 1.6 million tons of coal capacity currently. So how much according to us will be used towards the power plant and how much will be used for our internal operations? Could you highlight on that?
Second question is that what portion of the SKS coal requirement is met through PPAs signed with Coal India and what portion is met in-house again?
Padam Kumar Jain
Yeah. Out of 1.68 million tons, 100% will be captively consumed, whether it is in the power plant of SKS or internally for Sponge Iron plant, captive partner and all those things. And broadly maybe about 0.6 million ton might be used in other facilities and 1 million ton plus will be used in power plant.
Aman Madrecha
Sir, for this 1 million ton of this coal, what percentage of power requirement will be met to, let’s say, for example, for the 600 megawatt to run at fully, let’s say at 85% PLF, how much coal do we require — can you provide that number?
Padam Kumar Jain
We require more than 3 million tons, maybe 3.2 million tons, depending upon the grade of the coal. It will be 3 million tons plus requirement.
Aman Madrecha
So given that out of that 3 million ton, 1 million ton is made through this coal mine, right? Sorry, 1 million ton is made through this coal mine and rest is we buy from outside in CPAs, right?
Padam Kumar Jain
Yeah, for the time-being, yes.
Aman Madrecha
Okay sir. And also can you also highlight on the upcoming two coal mines, let’s say, the Shahpur West and the other coal mines that is coming up. So where are you on the Shahpur West coal mine?
Padam Kumar Jain
As given in our initial address, we have received a forest clearance to it also. Now we are in the process of executing the mining lease. Post that we will get the mine opening permission. And once we get the mine opening permission, which we expect to get before end of this quarter, then it will take about two years time to start the production or getting the production from that mine.
Aman Madrecha
Okay. And sir, if I believe, according to our previous remarks, previous interaction, this Shahpur West coal mine’s quality is at par with the imported coal quality, right?
Padam Kumar Jain
Yes.
Aman Madrecha
Okay. Thank you. Thank you so much, sir.
Operator
Thank you. And the next question is from the line of Digant Haria from GreenEdge Wealth. Please go ahead.
Digant Haria
Yeah. Thank you for taking my question. Sir, my question is again on this SKS Power that now it’s at least three months that we have the power plant in our hand. So what is the peak PLF that we can reach in these power plants now that you will have some more access to the power plants and how they work? So that is question number one.
Question number two is, sir, you said that blended realization right now is around INR5 a unit. So what would be the EBITDA or PBT per unit that we can make? I’m not looking at an exact number, but just a range depending on our coal mine or coal, which we are using currently from Coal India, what is the potential here? So these are the two questions, sir.
Padam Kumar Jain
In normal course, we should expect 85% of the PLF from the plant and we have been operating at full capacity. We have been getting plant easy in generating full capacity generation. So there is no circuit, there is some under-capacity. That is not the case. The plant is capable to operate at full capacity of 600 megawatt. That is the first question I think I have what exactly you wanted. This is what — and PLF —
Digant Haria
Yeah. So PLF can be 85% you are saying, right, or even more.
Padam Kumar Jain
80% to 85% because if we are selling part of the quantity in IEX, sometimes it happens to you, although you have the capacity, but prices are not remunerative enough to sometimes you may have to cut-down the production. So in that case, we may consider on the safe side, if we consider it may be 80%.
Digant Haria
Got it.
Padam Kumar Jain
Long-term contract. We have to cut down the production.
Digant Haria
Got it, sir. Sir, and my next question was what is the EBITDA per unit or profit before-tax, PBT per unit? Because you said revenue is around INR5 a unit right now. Over the long-term, where do you see this profit before tax number? It will be INR1 unit, INR2 a unit. What is the economics? If you can just explain us, you know, that will be helpful.
Padam Kumar Jain
EBITDA should remain in the range of, say, INR1.5 to INR2.5 somewhere in-between depending upon the prices because price volatility is there, so.
Digant Haria
Okay. And sir, this INR1.5 to INR2.5 EBITDA, this will change once we have our own coal mine, this entire INR2 million right now which we are buying from Coal India, if we get it from our own mine, the Gare Palma two, three years later, then does this number change or it may remain in the same range, 1.5% to 2.5%.
Padam Kumar Jain
It will improve marginally. Definitely, it will improve marginally.
Digant Haria
Okay, sir. Sir, and last question was, you said that — sorry, go ahead, sir, please.
Padam Kumar Jain
Please continue.
Digant Haria
Okay. The last question was on the steel part. You just mentioned that the imports from China has been very high and everybody is representing to the government. So these imports are very high on which parts, like, is it mostly in flat, long or you know in the products which we are there? Any color that you can give on this?
Padam Kumar Jain
Manish?
Manish Sarda
Can you come again, please?
Digant Haria
Yeah. So my question was that the imports from China has increased a lot on the steel side. So we just wanted to check, are there specific products where Chinese dumping is very high in India or you know, is it just mostly affecting our products or any such color you can give on the imports from China? And how different are the spreads?
Manish Sarda
In last few months, we have seen a lot of imports happening from China and it’s basically on the electrical steels and the flat steels that are coming into the country. And the government has taken note of that and is working on that to curb the imports also. So soon, we’ll — we are very hopeful that soon we will see that there’ll be some import curbs in-place. And basically it overall what happens when you see such a large sort of imports coming into India from China, the overall sentiment gets a little shaky here in India.
Digant Haria
Right sir. Okay sir. Thank you so much. Thank you.
Operator
The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead.
Pradeep Rawat
Yeah. Good evening and thank you for the opportunity. So I have some basic questions. So can you just highlight what is the cost of mining of coal and iron ore from our mines?
Padam Kumar Jain
Coal and iron ore — coal provision depends because we are paying a substantial part towards revenue share. We are paying 67% revenue share in our Gare Palma IV/7 and we are also paying royalties. So the whole cost depends upon the market price of the coal, which fluctuates in a wider range. And in case of a iron ore, it is somewhere in the range of INR2,500 to INR2,700 depending upon the output, there are multiple variables, lumps and fines. Again, because a major component of the output is the government taxes, which varies depend upon the grade and the size of the material taken-out. So defining a specific pricing key, what is the cost will be very difficult. In case of coal also we have four different grades of the coal from the same mine. So the cost varies in a much wider range for the grid to grid.
Pradeep Rawat
Yeah. Yes, sir. I was just asking more about the cost of operations in mining, excluding that revenue sharing model that we do.
Padam Kumar Jain
Yeah, that is not material in overall cost of restructure.
Pradeep Rawat
Okay. And we have Kalyani mines, which could — so when can we expect this Kalyani mines to operationalize? And are we planning to use some kind of advanced mining techniques like underground continuous miners or are we going to going to do it with existing blasting technologies?
Padam Kumar Jain
No. So far as the use of the technology is concerned, in case of underground mines, generally continuous miners only will be used. Take the case of Shahpur, the best coal mine will be using the continuous miners only for extraction of the coal from the mine. So far as Gare Palma IV/7 present operations are concerned, that is an open-cast mine where continuous miner is not required. So whatever is appropriate technology depend upon the mine that is applied.
Pradeep Rawat
And can you also comment on when could we expect Kalyani mines to be operationalized?
Padam Kumar Jain
In the last con-call, we had stated that there was a dispute on the boundary. There was overlapping boundary of the two different mines allotted to different parties. So that matter was taken-up with the CMPDI and that boundary dispute has been sorted-out, but now we are in the process of evaluating post rig design of the boundary. We are carrying out the DPR and viability survey and final outcome will come only once that is approved by the South Eastern Coalfields Limited. So as of now the position is stand-still.
Pradeep Rawat
Yeah, understood. Just last one basic question. We have purchased Surjagad iron-ore block for 126% revenue-share model. And I was just wondering how can we be profitable when we are giving away more than 100% of revenue share to the government? So that was one basic question from my side.
Padam Kumar Jain
Yeah. If you see all the iron-ore mines have gone only in this range and I think within this Surjagad iron-ore blocks also, ours was I think lowest maybe among the lowest of the premium which was bid by us. Others have given their bids much higher than our bid in the same geology and same area. There were multiple blocks in the Surjagad, also the block number one, and we have got a better quality of the iron ore. There are multiple variables again in the form of the revenue pricing of the iron ore, iron ore fines, iron ore lumps, there are multiple variables there. What price is — and their revenue share is payable on the notified price of the estate. It is not on your selling price because we will be bringing in case of iron ore, the royalty and revenue-share is payable on the notified price for the estate. So there are multiple variables in cost structure.
Pradeep Rawat
Okay. That was helpful. Thank you. Thank you and wish you all the best, sir.
Padam Kumar Jain
Thank you.
Operator
[Operator Instructions] The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.
Balasubramanian A
Good evening, sir. Congratulations for a good set of numbers. Sir, just want to understand the pricing point of view. Last quarter some price corrections around 6% to 8% of our billets, wire rod, and H.B Wire and manganese ores also has been corrected 10% to 27% based on high-grade to low-grade in that range. In this quarter, how is the prices or what’s the scenario right now?
Padam Kumar Jain
Manish?
Manish Sarda
This quarter also we think that the prices will be a little subdued because December holidays are approaching and typically we see that December is a little lull month. Overall, I think the government spending will also start happening in the next three to four months, because if you look at the last six months, government spending has been not as much as we had expected it to be on infrastructure. So going forward, I think the demand will pick-up, but in the next two to three months, I think it will be a little subdued as well.
Balasubramanian A
Got it, sir. Thank you.
Operator
Thank you. The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead.
Pradeep Rawat
Yeah. Thanks for the follow-up. So I just wanted to understand more on the Ferro Alloys market. So how is it faring right now and what can we expect going forward?
Padam Kumar Jain
Yeah. So the Ferro Alloys market, as you know that it has gone up in the middle because of the ore crisis which happened in Australia where there was severe flooding, etc that happened in the South32 mines. Right now, the alloy market is quite slow and the demand globally is not very high right now because you’ve seen major regions in disturbances like the Ukraine-Russia war happening, the Gaza attack, the Middle Eastern regions. Also, the credit crunches felt across regions. So we’re not hoping that the next two, three months, there’ll be an uptick on the Ferro Alloys side or the Ferro Alloys pricing. But maybe after January end, February onwards, typically the demand picks up.
Pradeep Rawat
Okay, understood. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rajesh Bandari from Nakoda Engineers. Please go ahead.
Rajesh Bandari
Good afternoon, sir. [Foreign Speech].
Padam Kumar Jain
Thank you.
Rajesh Bandari
[Foreign Speech]
Padam Kumar Jain
[Foreign Speech] You know that December season is always a little lull season and January people start coming back to offices by January 10. So after January only the pickup will start in terms of demand. But globally, the demand looks to be a little slow because if you know that Japan has got an installed capacity of 105 million tons and they are not going to produce more than 90 million tons. So we are seeing a shortfall in terms of steel production in Japan as well. We are seeing a shortfall in terms of production in European Union as well. So steel production. Yeah, in terms of steel production. And this year looks to be a little low in terms of demand because of the war situation going on everywhere. And we are also waiting and watching very quietly as to what will happen when Trump’s policy comes into place.
Rajesh Bandari
Yeah, correct.
Padam Kumar Jain
What are the impacts that are going to be put in place for China? We have to see what are the policies that he is bringing out for trade and only then we can expect some demand pickup.
Rajesh Bandari
[Foreign Speech] will the demand pickup from India?
Padam Kumar Jain
[Foreign Speech] but let us see that what is the policy that comes into play.
Rajesh Bandari
[Foreign Speech]
Padam Kumar Jain
[Foreign Speech] it is hovering around $860 [Phonetic] to $880 [Phonetic]. So price stability is already there in terms of dollar terms.
Rajesh Bandari
I couldn’t get it, sir, $860 to $880, what is that?
Padam Kumar Jain
$860 to $880.
Rajesh Bandari
Okay, which is profitable for us?
Padam Kumar Jain
Not too much, but it’s okay, it’s not that bad.
Rajesh Bandari
[Foreign Speech] All the best for SKS Power.
Padam Kumar Jain
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of A.M. Lodha from Sanmati Consultancy. Please go ahead.
A.M. Lodha
There is one follow-up question which I skipped and regarding SKS Power, sir. [Foreign Speech] number of units.
Padam Kumar Jain
[Foreign Speech]
A.M. Lodha
[Foreign Speech] I found that the total capacity after this 25 hydropower, you will be having 1,000 megawatt power in total?
Padam Kumar Jain
Not hydro.
A.M. Lodha
Not hydro. One player, you have mentioned 761, another place 166 idle, another 50 solar and this hybrid and the 25 which is going to commence the production. So I’m making the total of the total comes to 1,200 megawatts.
Padam Kumar Jain
So I don’t think 1,200, it should be somewhere in the range of 1,000.
A.M. Lodha
Not 1,000. 1,200.
Padam Kumar Jain
It will be 1,000 tons.
A.M. Lodha
This year there was heavy rain. So I presume that idle power also generate some units in the month of October, November?
Padam Kumar Jain
[Foreign Speech] generation is better as compared to the previous year.
A.M. Lodha
Okay, sir. Thank you very much, sir. Thank you. That’s from my side, sir. That’s all.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to the management for their closing comments.
Manish Sarda
Yeah, thank you. We thank all the participants for attending this con-call. To summarize what we stated, the long-awaited acquisition of SKS 600 megawatt power plant is completed and this will be a major growth driver in our journey. Number of projects are under execution for consistent growth. Out of these, 25 megawatt hydropower project and 50 megawatt solar power project will be commissioned in the current financial year. Our diversification has resulted in better performance during volatile times. So we are poised for exciting times.
Thank you. Please feel free to reach out to us or to our IR team with any further queries. Thank you all.
Operator
[Operator Closing Remarks]