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Edited Transcript of JSWENERGY.NSE earnings conference call or presentation 16-May-19 11:30am GMT

Q4 2019 JSW Energy Ltd Earnings Call

Bangalore Karnataka May 23, 2019 (Thomson StreetEvents) -- Edited Transcript of JSW Energy Ltd earnings conference call or presentation Thursday, May 16, 2019 at 11:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Jyoti Kumar Agarwal

JSW Energy Limited - CFO, Director of Finance & Director

* Prashant Jain

JSW Energy Limited - CEO, Joint MD & Whole-Time Director

* Pritesh Vinay

JSW Energy Limited - VP of Capital Markets and Group IR

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Conference Call Participants

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* Abhishek Puri

* Manish Gupta

Solidarity Investment Advisors - Founder & CIO

* Rahul Modi

ICICI Securities Limited, Research Division - Analyst

* Santosh R. Hiredesai

SBICAP Securities Ltd., Research Division - Research Analyst

* Swarnim Maheshwari

Edelweiss Securities Ltd., Research Division - Research Analyst

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Presentation

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Abhishek Puri, [1]

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Good evening, ladies and gentlemen. On behalf of Axis Capital, I welcome you all for the JSW Energy Q4 and FY '19 Earnings Conference Call. From the company, we have Mr. Pritesh Vinay, Vice President, Investor Relations and Capital Market. The call will be initiated with a brief overview by the management followed by the Q&A session. Over to you, Pritesh.

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Pritesh Vinay, JSW Energy Limited - VP of Capital Markets and Group IR [2]

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Thank you very much, Abhishek. A very good evening to all the participants who have dialed in for JSW Energy's Fourth Quarter and Full Year Fiscal 2019 Results. I'm sure you've had the chance to go through the results, the press release and the earnings presentations which has already been uploaded on the website. We have with us today, the management team of JSW Energy represented by Mr. Prashant Jain, Joint Managing Director and CEO; Mr. Sharad Mahendra, Chief Operating Officer and full-time Director; and Mr. Jyoti Kumar Agarwal, Director of Finance, along with other colleagues.

So we will start, as Abhishek mentioned, with a few minutes of opening comments by Prashant, and we will then open the floor for Q&A and restrict -- and request every participant to restrict their questions to 2 per participant in order to give everybody a chance.

With that, over to Prashant.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [3]

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Thank you, Pritesh. Good evening, ladies and gentlemen.

FY '19, the demand growth for the power sector was 5.1%. However, quarter 4 demand growth was only muted at 1.6% due to extended winter and poor IIP. Thermal PLF has shown improvement from 59.9% last year to 61.1% this year. Total capacity addition was 6.8 gigawatt during the quarter 4, of which 3.6 gigawatt was in thermal space and 3.25 gigawatt in renewable space.

In the entire year, total capacity addition was 12.1 gigawatt, of which 3.4 gigawatt was thermal and 8.6 gigawatt of renewable. This 8.6 gigawatt renewable is as against the target of 21.8 gigawatt. One important thing which we have observed that the total capacity addition in the sector is continuously moderating. In FY '17, total capacity addition was 24.7 gigawatt, which moderated to 17.1 gigawatt in FY '18 and was moderated to 12.1 gigawatt in FY '19.

Similar trend we observed in renewable sector also. FY '17, the capacity addition was 14.4 gigawatt. FY '18, it was 11.8 and it moderated to 8.6 gigawatt in FY '19. The point which I am trying to bring out is that the capacity addition is getting moderated and power demand is robust at 5% to 6% since last 2 years, and CEA also has forecasted the power demand to grow between 5% to 6% for FY '20.

In addition to that, in FY '19, we saw the total retirement of the old thermal plant by 2.4 gigawatt. So that retirement has started and we believe with the new environment norms kicking in between FY '20 to FY '22, the target retirement of 20 to 22 gigawatt is going to materialize, and this all is going to bridge the demand and supply mismatch. And with no new CapEx coming in, the power shortage may happen in time to come. The merchant volume during the quarter 4 went down 12% year-on-year and 27% quarter-on-quarter. The prices also went down. But for the overall -- for the FY '19, the merchant prices were up by 18% at INR 3.85 as compared to INR 3.26 in the previous year.

During the year, we saw the Coal India production went up by 6.6% at 671 million tons, and dispatches to power sector went up by 7% at 542 million tons.

Coming back to the company, for the quarter, we saw 3% lower generation primarily due to the lower merchant sales, which was due to poor demand in the quarter 4. However, our EBITDA went up by 9% at INR 570 crores. For the entire year, our EBITDA was at INR 3,228 crores -- INR 3,221 crores. And the important thing which I want to highlight here is that our quality of EBITDA has improved because majority of the portion coming from operating income and other income is going down.

During the year, we increased our long-term PPA portfolio from 75% to 80.4%. And in FY '20, we have already secured short-term and medium-term PPAs and because of which we are having a visibility of 90% tie-up for the entire consolidated capacity and which is excluding the PFC 3-year tender and strong visibility which we are seeing in some more short-term and medium-term tenders. So therefore, we are seeing FY '20, the PLFs will be on a higher side. Also, I'm happy to share that last year our generation was lower by close to 600 million units in hydro space as compared to previous year because of the less availability of water, but the current year is going to be good because of heavy snowfall, which we saw last year and the water availability is very good this year. So hydro generation is expected to be very good this year.

We have been continuously deleveraging our balance sheet. And given our plans to diversify into electric vehicle have been abandoned or shelved, we will be now putting our all cash and also the further leverage on the balance sheet for power and power-related sector. During the year, we reduced our debt by -- in excess of INR 1,200 crores and our net debt has come down to INR 10,050 crores. And our debt-to-equity and debt-to-EBITDA ratios are very, very strong and which gives us a very good confidence to take on more growth opportunities organically and inorganically.

I'm also happy to report that we have taken various measures to improve operational efficiency because of which our O&M costs have been consistently coming down. In spite of wage increases as well as the inflation which we are -- we have been seeing, in last 3 years we have reduced it substantially and then we did recent benchmarking and we found that we are one of the lowest in the ITPs, both in public and private sectors, in our O&M cost.

In terms of outlook, as CEA has shared that it's 5% to 6% demand growth, we are seeing enough opportunities for growth organically and inorganically. Organically, we are going to commission our 2 projects of 18-megawatt for captive purpose in the first quarter. We are also evaluating to revive Kutehr hydro project, after the announcement of new hydro policy by cabinet committee. Wherein, they have granted a capital subsidy up to INR 1 crore per megawatt for construction of road and bridges. And the new HPO, Hydropower Purchase Obligation rule, which will be notified shortly after the new government is formed.

Government of Himachal Pradesh has already accorded an approval to us for deferment of the free power with -- for first 12 years. So we are in discussion of various discoms for long-term tie-up of this project for 240-megawatt. So we will continue to evaluate. And if we find everything goes well, then we will announce the project to be started.

With this, I conclude my remarks and we are happy to take any questions, if you are having.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question is from the line of Santosh Hiredesai from SBICAP Securities.

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Santosh R. Hiredesai, SBICAP Securities Ltd., Research Division - Research Analyst [2]

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If I just wanted to get some color on this recent PFC bid which happened. What are the timelines out there? And what is the arrangement for coal? Or is it completely imported? Or you can switch between, let's say -- I mean, how is it structured like?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [3]

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So it is -- it's up to the power producer from where they are securing coal. So even the SHAKTI coal and coal linkages are permitted to be using this particular tender. As regards to JSW Energy, we have considered that we will be using imported coal. And you know that at right point of time when we are able to secure a PPA and that is finalized, then we can hedge it by papers which are available in the market so that we do not have any -- we can lock our target spreads. And the current market which all of you are aware that the thermal coal prices, API 4 prices index on the spot market today are at sub-$70; and for calendar 1, it is approximately $77; and calendar '21, it is $79 to $80. So the papers can be hedged and that's what we have envisaged as far as JSW Energy is concerned.

With regards to timing, tender document talks about the power to start from 1st of October. But there can be some delays depending upon the tie-ups on a case-to-case basis. However, as per the JSW Energy is concerned, we are taking our separate initiative to tie-up with this one based on this tender. So we are getting some visibility that it will be earlier than what we were thinking a couple of weeks ago.

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Santosh R. Hiredesai, SBICAP Securities Ltd., Research Division - Research Analyst [4]

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Sure. And sir, the offtake commitment here is...

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [5]

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85%.

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Santosh R. Hiredesai, SBICAP Securities Ltd., Research Division - Research Analyst [6]

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How much would that be? 85%. Was there like any two-part tariffs where 80% is commitment and we get basic charges?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [7]

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Yes. So the way it is structured is that 50% of that quoted tariff, which is INR 4.41 is fixed charge and balance is variable charge. So in case of a shortfall, fixed charge will be paid.

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Operator [8]

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(Operator Instructions) The next question is from the line of Rahul Modi from ICICI Securities.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [9]

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Sir, just a couple of macro questions, as to which states are you finding who'll be coming up with medium-term and long-term PPAs that we are targeting over the next 12 months? If you can throw some light on that, please.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [10]

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So it's in public domain. For example, right now Government of West Bengal has come out with a 5-year tender. There is a long-term tenders are also -- which is 3,000 megawatt is coming for bidding in from Gujarat. There are southern states which are looking for power, both whether in Telangana, Andhra Pradesh and Tamil Nadu, they are short of power. So number of states are coming up for various tenders. So we are looking at various kind of opportunity. But what I can share is that, if you see last 3 years' trend, earlier discoms were buying power only from the merchant markets. And only in last 1 year, the tenders have started coming. Earlier, it was 1-month or for a couple of days. But in last 6 months, the tenders are coming for 9 months to 5 years. So the trend is towards more of a medium term than the short term and more and more quantum is coming up. Because if power demand is growing at 5% to 6%, you are actually talking about your additional capacity requirement of close to 15,000 megawatt on a base demand of 155 gigawatt if you add PLF and auxiliary power consumption. So excess capacities are getting absorbed and this is what you are seeing the trend. So we are quite optimistic.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [11]

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Sure. Great. Sir, and just lastly, sir, what is the status of the JPVL and the JSPL advances? How much is the current outstanding as it stands? And what is your view on that?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [12]

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Jyoti, would you like to take this question?

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [13]

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So first I'll talk about JSPL. The long stop date for the Tamnar asset is 30th of June this year. And till that point of time, the advance continues. The current outstanding is INR 331 crores, a little bit higher than that. And it's been fully serviced in terms of monthly interest payment. The visibility on that transaction is low, but we'll have to wait till the long stop date comes. And if the transaction doesn't happen, then we expect the advance to come immediately after the long stop date.

On JPVL, the current outstanding amount is INR 752 crores, against which we have taken a substantial amount of provision. The unprovided amount is INR 178 crores. Now here the company is talking to lenders for outside of NCLT resolution plan. And we are trying to work with a company to see how do we recover the entire INR 752 crores of -- the amount that is outstanding in the books. For the amount that is not provided for, we do have some contingent consideration payable to them. So it will be set off in case we don't get the recovery of the same. We are not booking any interest income because that has not been paid on this amount.

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Operator [14]

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(Operator Instructions) The next question is from the line of Manjeet Buaria from Solidarity Managers.

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Manish Gupta, Solidarity Investment Advisors - Founder & CIO [15]

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This is Manish Gupta from Solidarity. Prashant, question is what is the probability you would ascribe to inorganic opportunity that the company could pursue through NCLT or outside based on the visibility you have at present?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [16]

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So Manish, you look at the context, the power sector is in tremendous distress, close to 28,000 megawatt capacities under stress. But in last 1.5 years, you have been seeing that the February 12 circular, which has been challenged primarily by the power generators because of which there was a lot of delay which was happening in terms of any resolution outside NCLT or within NCLT. Of late, in last 3 to 4 months, we have seen 2, 3 cases getting admitted towards -- in the -- in NCLT under IBC process. So the process is going to gather momentum. I will say that I'm more optimistic than I was last year in terms of some resolutions happening this financial year. Given the size of our balance sheet and our active interest in -- for consolidation in this sector, we are a very natural choice to acquire some of the assets. However, we will be picky and choosy. And we will be looking at those assets which are really value-accretive for us because we believe that power sector is not a easy sector, so we need to be really careful.

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Manish Gupta, Solidarity Investment Advisors - Founder & CIO [17]

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Right. I think -- well, where I'm going with this, Prashant, was that if after a period of time, you don't end up buying any assets because of how disciplined we are, will you consider returning some cash to shareholders because as a capital-intensive business, our debt-to-equity is too low. So the company is generating almost INR 2,000 crores of free cash every year. And the -- what's the road map for value creation essentially? If we can't grow inorganically and organic prospects are also not very rapid and the company is accumulating cash. So how do you think about the cash return to shareholders to boost some value creation?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [18]

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So Manish, we have been historically either rewarding the shareholders. In past, also, we have done up to 40%, 45% payout of -- as a dividend. This year, also, our dividend is 28% payout. And I am very, very optimistic that there are lot of opportunities because I am painting a scenario that in 2 years' time frame there will be a shortage of power, and there is no CapEx which is happening. So I will put more probability towards that the growth will be happening sooner than later. However, in case we do not find any opportunity, we have been always working towards rewarding the street -- minority shareholders to distribute the cash.

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Manish Gupta, Solidarity Investment Advisors - Founder & CIO [19]

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Yes. So appreciate that, Prashant. Again, I think, we are in a business where our cash EPS is far higher than accounting EPS, right? So I think against INR 4 earnings per share, I think the dividend payout is INR 1 per share, but the cash earnings per share is significantly more than INR 4. So under the scenario where you believe that you need the cash for inorganic growth, absolutely, the cash will stay with the company. But if you -- after a year or so, if you're not being able to conclude any NCLT deals or otherwise, I would urge you to think about the payout ratio. That's one. Second question is, any -- can you just advise on any update on the state of the HP Board? What's the payment situation over there in terms of receivable dates?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [20]

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So overall, our receivables are under control. Whatever number of days we have been working with, it's the similar trend. And -- so we have not seen any kind of abnormality. Even postelection, in some of the recent states we have not seen. And then still discoms are able to raise money from banks. And -- so as far as JSW Energy is concerned, we have not seen any meaningful deterioration in receivables. So it's within our range whatever we keep the target.

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Operator [21]

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(Operator Instructions) The next question is from the line of Abhishek Puri from Axis Capital Limited.

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Abhishek Puri, [22]

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I had a couple of queries. One on the hydro power projects that you acquired, how much is the debt pending on the balance sheet now?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [23]

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Jyoti?

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [24]

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So the debt is about INR 5,500 crores.

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Abhishek Puri, [25]

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Okay. So that has not been repaid in last couple of years? Or...

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [26]

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It has been repaid. It has been going down. The debt outstanding is what I'm talking about.

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Abhishek Puri, [27]

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And what is the payment cycle on this? I mean, if you can just brief us?

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [28]

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All our debts are long-term debt at the project level, where JPTL as well as hydro. These are very, very elongated long-term debt. So there is no real immediate cash flow issue coming from any of these debts. The parental debt is also reasonably elongated, also it's a bit shorter than the project debt.

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Abhishek Puri, [29]

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Could we assume 3 to 5 or is it more than 5 years?

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [30]

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Longer than that. It's kind of...

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Abhishek Puri, [31]

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Okay. But just trying to ascertain the flexibility in terms of leveraging the balance sheet for further acquisitions. So I was trying to understand that. And secondly, for Vijayanagar, this PPA starts from 1st July, you said.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [32]

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Yes.

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Abhishek Puri, [33]

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300-megawatt. So is there any further capacity tie-up which is expected in the near term? Or are we selling it on exchanges?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [34]

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Yes. We -- as I -- we said that another capacity which we have already booked in PFC tender, so it's a matter of time whether it gets long term from October or November or September depending upon the tie-up we do that. With that, the 600 megawatt will be at long term. And 280 megawatt is already with the JSW Group. So if that -- the day PFC capacity is locked up and power flow starts, Vijayanagar will be fully locked up.

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Abhishek Puri, [35]

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Right. Okay. And lastly, I just wanted to understand, in terms of this -- the acquisition part, I think you answered partly in the last -- to the last participant. But are you also willing to look at solar and wind projects? I think there are enough number of projects which we've heard are available for acquisitions? And what will be the hurdle rate for -- in terms of IRR, if yes?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [36]

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Yes. We are absolutely looking at those assets. But for us, the hurdle rate is first the power tariff should be lower than INR 4 or INR 4.50. Then we are not interested to look at the assets which are having a power tariff of INR 6, INR 6.50.

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Abhishek Puri, [37]

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I mean -- and in terms of IRR? Any sort of -- so I think earlier you mentioned, you are looking at returns of closer to the CRC rate?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [38]

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Yes. But -- as I said that those things are -- keeps on changing depending upon the interest rate scenario and various other financial structuring. And the most important thing at this point of time for us is that we are looking at the assets which are lower power tariff.

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Abhishek Puri, [39]

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One last small data point. The stand-alone debtors are almost flattish. Whereas, consolidated has gone up by INR 400 crores, INR 450-odd crores. So is there a delay at the Barmer end by the customers? Or is it the hydro plants?

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Jyoti Kumar Agarwal, JSW Energy Limited - CFO, Director of Finance & Director [40]

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So largely, at the Barmer end, I think, one of the discoms there, obviously, we are seeing some delays. But as Prashant mentioned in response to a question earlier, in terms of the number of days of receivable, it's still within the broad range that we have a parameter on that we are comfortable. So it still not crossed that. But you are right, the increase in the consolidated data is largely because of Barmer.

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Abhishek Puri, [41]

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Okay. And the INR 2.50 tariff that -- as per the regulatory order that came in, in Barmer, has that been implemented already? Or we are looking at -- and what tariff are we looking for FY '20?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [42]

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It is the same. Right now, we have been getting for the last financial year at INR 2.50. And new regulations have not been notified yet. So original tariff is continuing.

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Operator [43]

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The next question is from the line of Swarnim Maheshwari from Edelweiss.

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Swarnim Maheshwari, Edelweiss Securities Ltd., Research Division - Research Analyst [44]

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Sir, in one of the replies you did mention that you are quite picky and choosy in terms of acquisition for distressed assets. But if you can just outline your framework for looking at distressed assets when you bid, what is it you look for, the PPAs, the SSAs? Or what is the most important criteria is for you?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [45]

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As I mentioned just now, the most important criteria for us is the power tariff because there is no question for us to look at and rely on PPA and then don't get our receivable and have a working capital crisis subsequently or offer discounts to discoms. So we have been looking at assets where the power tariffs are reasonable so that we get preference in merit order dispatch because all of you know that what is the situation of the discom health. And for us, the receivable is the biggest risk in this particular business, which can only be mitigated if our power tariff is very, very competitive and we get a preference in merit order dispatch. So that's the single important factor for us. Other than that, of course, we are looking at the location of plant, the quality of plant, technical and whether it is subcritical, supercritical, capital structure. Everything is important and the most biggest important hurdle for us is power tariff. And there are the other important things which we do that.

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Swarnim Maheshwari, Edelweiss Securities Ltd., Research Division - Research Analyst [46]

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Right, sir. Understood. Sir, a related question would be, you would have seen in recent bids, when the project has actually exchanged hands, we have seen the discom kind of renegotiating the tariffs. So what is your take on that?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [47]

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Which tender you are talking about?

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Swarnim Maheshwari, Edelweiss Securities Ltd., Research Division - Research Analyst [48]

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Sir, this was on the Prayagraj that we have seen recently. Also in KSK, we have heard that the UP discom is kind of negotiating the tariff after the haircut has been taken by the lenders.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [49]

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So jury is still out and because the matter is subjudice and -- but I can give you my personal opinion not about Barmer -- not -- but I feel that the assets are under distress because of certain reasons. And because of those reasons, the cash flows are discounted and a new capital structure has been formulated. And if that capital structure is questioned and the rate is renegotiated or changed, then the entire capital structure has to be further renegotiated and it will be a never-ending loop. So I think it's going to test some legal points in court of law. And very soon, I think, it will be settled.

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Swarnim Maheshwari, Edelweiss Securities Ltd., Research Division - Research Analyst [50]

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Okay. Yes. Because I -- sir, I asked this because a sense of -- you are also looking to bid for such kind of assets. So in future this might also be one of the overhangs. Okay. Sir, lastly, now you did answer on your renewable strategy. But I'm sorry, we were not able to like hear you properly. So the point is that given the aggressiveness is now broadly heading in the renewable -- in the greenfield renewable bids, so you -- would you reconsider your strategy of entering into the renewable side specifically on solar and wind? And I'm not really talking about inorganic growth in the renewable, but more on the greenfield projects?

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [51]

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So we are evaluating that space because we have seen certain moderations in the tariff. You saw the tariff going as low as INR 2.42, and now they have come up to INR 2.79 to INR 2.85. And this needs to be seen in the light that the time at which people were quoting INR 2.42, the panel prices were at $0.34, $0.35, and now they have dropped to $0.21, $0.22. So I think some sanity is coming in this sector. And then we are now evaluating to look at these opportunities.

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Operator [52]

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The next question is from the line of Rahul Modi from ICICI Securities.

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Rahul Modi, ICICI Securities Limited, Research Division - Analyst [53]

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Sir, just 2 quick questions. Sir, one, can you share with us your experience in curtailing the O&M costs, which are commendable? That is one. And what are the measures that we are taking? And secondly, in case there is any delay that we see in the overall outside NCLT or acquisition cases the banks come up with over the next 12 to 18 months, do we see a higher repayment happening for the loan, any thoughts on that? Or we would like to preserve the cash as and when it comes? So just last 2 of my questions.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [54]

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Okay. So in regards to O&M, we started with number of initiatives from -- ranging from improvement in heat rate, reduction in auxiliary power consumption. We took various innovation drive across the organization. And I'm just happy to share JSW Energy is the company in -- which is going for Deming Prize for total quality management. And this will be the company -- this year, we are going for assessment. And if we are assessed positively for Deming Prize, we will be the first company in energy space outside Japan for 30 years. So we have taken various initiatives to -- as I said, to reduce auxiliary power consumption, heat rate, coal losses, the losses between expired and as-received coal, the maintenance practices. Shutdown timing has been reduced in case of our hydro power plants, water conservation exercise, energy efficiency. We did -- we use digital technology to power manpower productivity improvement. We have been consistently improving our manpower productivity. And still we are trying to do the benchmarking with the world's best organization because we believe that these are the things which we can do.

Also, we took various initiatives for very quick start ramp up and ramp down of the loads in the merchant market, so that we can capitalize for even 15-minute load if there is a demand we can capture and then sell our power and make more money. So these are the things which are going to be reckoning for us. And we will continue to work on digital initiatives and quality initiatives.

As regards to your second question for NCLT, I am quite optimistic because the can has been kicked down the road quite a long and then now things have been into a difficult situation. And the way you are seeing that, the problems are coming from all sides. So I think resolutions are going to happen. And we are quite optimistic for some assets will be resolved in NCLT or outside NCLT, and we will be able to close some transactions which meets our criteria.

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Operator [55]

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Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.

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Prashant Jain, JSW Energy Limited - CEO, Joint MD & Whole-Time Director [56]

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Okay. Thank you. Thank you, everyone, for joining us for this call. In case there are any follow-ups, please feel free to reach out to us at the Investor Relations team, and we will be happy to settle them. Thank you, and goodbye.