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Ladies and gentlemen, good day, and welcome to Nitin Spinners Limited Q4 FY '24 Conference Call hosted by SMIFS Limited. [Operator Instructions] please note that this conference is being recorded. I now hand the conference over to Mr. Awanish Chandra from SMIFS Limited. Thank you, and over to you, sir.
Thank you, Dico. Good evening, everyone on behalf of SMIFS Limited, I welcome you all to quarter 4 and full year FY '24 Earnings Conference of Nitin Spinners Limited. We are pleased to hold the top management of the company. Today, we have Dinesh Nolkha, Managing Director of the company; and Mr. P Maheshwari, CEO of company. We will start the call with [indiscernible] and on the results, and then we will open the floor for question and answers.
Now I will hand over the call to Mr. P. Maheshwari, CFO of the company. Over to you, Maheshwari Sir.
Thank you, Awanish. Good evening, and a very warm welcome to all the participants for this conference for Q4 and FY '24 earnings. I hope all of you had a chance to go through our investor presentation that has been uploaded on the company there and [indiscernible] elaborate on current industry and business landscape. I shall be providing the financial highlights, fourth quarter and year end date for first 1 March 2024.
The revenue for Q4 '24 was INR [indiscernible] 7.7 crores against INR 750.42 crores during Q3 FY 24. That is an increase of 7% on Q-o-Q basis. On Y-o-Y basis, revenue increased by 22% from INR 24.8 crores to [ INR 807 crores ] in Q4 '24. For the full year, revenue is INR 95.65 crores against FY 23 revenues of INR 2206. 71 crores posting an increase of 21%. EBITDA [indiscernible] a INR 116 crores as compared to INR 103 crores in Q3 FY '24 and INR 71 crores in Q4 FY '23. EBITDA for full year FY '24 is INR 377 crores versus INR 297 crore in FY '23, that is a growth of 27%. EBITDA margin for the quarter stood at 13.5% against Q3 FY '24 margins of 15.4% in Q4 FY'23 margin of 10.8%. Profit before tax on the [indiscernible] is it INR 52.78 crores against increased INR 43.01 in Q3 FY '24 and INR 14.75 crores in Q4 FY'23. For the full year FY '24, profit before tax is INR 177.53 crores against INR 175.88 crores in [indiscernible] EA for the quarter is INR 49.7 crores against INR 31 crores in Q3 FY '23 and INR 38.55 crores for FY'23. [indiscernible] For full year at INR [indiscernible] crores yes, last year PAT of INR 164.81 crores, lower due to higher [indiscernible] year.
So the EPS and EPS for the quarter is INR 106.97 crore and INR 13 per share, respectively, and full year EPS and cash EPS is to take 23.39 INR 44.4 per share per [indiscernible]. As of March 24, the company's that profile at INR 1,339 crores, comprising INR 811 crores in l[indiscernible] crores [indiscernible] crores as current -- and the Board of Directors have reported a dividend of 25% were INR 2.5 per share return as last year.
That is all from my side. I now request the Dinesh to apprise the participants to both industry and ebusiness line.
Thank you, Maheshwari, and Awanish, I would like to elaborate on the industry [indiscernible] to the challenges, which we have seen in the previous year, the [indiscernible] industry in India has undergone a case of consolidation during the previous [indiscernible]. benefiting from stable raw material prices and a gradual increase in demand despite ongoing geopolitical challenges which is Russia, Ukraine conflict is prices, which has resulted in higher freight cost and 80,000 our union textile expose demonstrated [indiscernible]. This increase in sales relet to improvement in capacity utilization and margins within the certain [indiscernible] industry. The growth is largely driven by increased demand from downstream textiles and a the capacity utilization in [indiscernible] still subdued, which is expected to revive in near future.
Cotton prices heavily [indiscernible] in the previous year, which lead to the levels of 10,000 a tea and gained at INR 55 [indiscernible] to INR 580 per recently. The prices are not fairly stable since last few months and Indian sunrises competitive at international comp prices.
Moving ahead, the cotton prices are expected to remain stable in view of food crops in various countries overseas, the anticipation and the patio of a good monsoon and crop in India as well. The stable cotton prices eliminate uncertainty in help international conformer and the retail change to plan and focus their purchases inhibitor way. This is August well for the Indian textile industry. Looking ahead, the [indiscernible] eagerly awaiting implementation of various measures from the government of India, like establishment of Tactile Pat, PLI, various schemes for boosting exports measures were in at consideration or held up into elections. I hope the implementation of these themes on selections to help long-term growth of Indian Textile industry.
Coming on to the company's performance. The company is effectively execute its expansion strategies, leading to a substantial growth in our revenues with the strategy utilization of technology, process optimization and capacity enhancement and investments in our workforce, we have witnessed notable improvement in our operating margin business. Both spending and [indiscernible] fabric utilization have reached nearly the optimal levels during the last quarter, contributing to 7% [indiscernible] the revenues.
Looking forward, [indiscernible] to innovation, operational excellence and expansion into value-add segments, building sustainable, even unbasic it is to foundation in place, we are well poised to capitalize on the margin opportunity and cause the deal to address any potential challenges. With this, I would like to open the floor for questions [indiscernible]
[Operator Instructions] the first question is from the line of Manish Oswal with Nirmal Bang Securities Private Limited.
Good set of numbers given the environment. So my first question on the volume growth outlook for we have excess capacity, so we want to ramp up our new facility also. So what is your outlook for after in terms of volume growth?
We're already in the last quarter, we are mainly running the top capacity levels. And our total production, if you see in our presentation, it is above 91,000 tonnes of [indiscernible] of them last year. Our agent capacity is around 102,000 tonnes per annum, and we can produce -- or giving all efficiencies in about 105,000 tonnes. So we are looking for that kind of capacity utilization, which is about 10% more so represents [indiscernible] capacity.
Okay. And secondly, sir, the current spread of yarn versus quote versus the average space how all the current spread moving in the market.
Spreads have definitely improved, which is why the reasonable you are seeing an improvement in margin. So in the cotton prices, we expect to remain stable. The recent price remained in the range of INR 57,000 plus in the last 6, 7, 8 months, which is going to continue going forward as well as we look forward.
So margins should remain stable. And as the demand increases, definitely the margin for the [indiscernible] Q2.
And lastly, on the export side of the demand, whether things are improving at a gradual pace or you are seeing a very meaningful improvement in the export demand, especially the centers like Bangladesh and Vietnam as the demand is improving ultimately. So how you are reading those things?
Demand is definitely improving, and it is not very fast pace. It is a normal base. If you see the data of imports by various of these countries, we have seen in China has started truly in both large companies in March, they have increased their imports of cooton yarn substantially. I think the year-on-year basis, the increase is about 37%, 40%. So that in a substantially increase happening every day. But exports from entire overall [indiscernible], we have improved a good pace in the last 2, 3 months. And now I think we will remain stable for next another 6 months on the same level what we have seen in March and April.
And lastly, what is your outlook on margins or operating -- we closed the year -- full year a 13% EBITDA margin versus 12.3% last year. So how do you see the margin trajectory going ahead? -- probaly basically, we don't give any projections for the margins. But just an indication is that our last quarter margin was 17.5%. So if you're able to maintain that also, it should be substantial improvement from the level early levers.
The next question is from the line of Jatin Damania Swan Investments.
Good evening, sir, and thank you for the opportunity. So as you indicated, we are taking already at 89% on a rated capacity. So taking we can close FY '25,
Just wanted to understand that we closed with rated capacity and we crossed revenues were about INR 800 crores. So taking that into consideration, FY '25, we will be able to [indiscernible]. And -- if I want -- if you want to look at down to right. So on 1 look at the capacity allocation and the change in the product mix.
Both are separate things, utilization the capacity and then accordingly, one is growing the capacity adjacent capacity and another thing in the product. As far as capacity is concerned, as I've done we are near to our contract, we have a very small level in left if you compare our last quarter number to increase the capacity, especially in the seating business. As far as our public business is concerned, we still have some stores to improve on there. We have the see improvement here the top of improvement is only come is there the focus improvement is another 10%.
So there also we can try to improve our liquid service capacity utilization has been on a [indiscernible]
Every capacity utilization as of slightly on the lower end. We have a set to improve account there as. So going forward, we are trying to optimize all the capacity utilization, which we have. And that is that is a motor which we have for the financial year.
Coming financial years effective from a longer-term vision. So just wanted to understand, I mean, are we looking at further expansion or probably we are looking an addition of a internal 1 look at the growth for '23 '27.
Basically, we are going to add the capacity as we will look at the various kinds of products if you want to get into. We have sort of the [indiscernible] of products which we can get into. That is still on -- we are always continue to studying the products which we need to go ahead and to the businesses being a top there. Also, we have to increase capacity in the [indiscernible] business since we are -- our size is very reasonable at this point of time. We have under scope there to grow as we are evaluating it definitely will continue to grow going forward as well. Given also, we have taken measured expansion considering our size and coding how signs of financial desanding we will continue to do that lightly.
Sir. And last question from my side, on the operating margin or the EBITDA margin as on the sequential basis as we had input. I just wanted to understand, we were also talking about some improvement in our power and fuel. So whatever steps taken by the company to lower down the power in part and the [indiscernible] that can come in coming years?
We have added substantial solar capacity SolarPower capacity. Now our capacity of [indiscernible] megawatts. This is the end of the last year this tape was about 13 megawatts. So they have added more than 10 megawatts of capacity. So then we will be adding another 2 more capacities during the year. whatever capacity, whatever the available intracity we have within our plants. -- and other trying to add another 7 to 8 megawatts of power within our own campuses. So this will definitely have a -- in estar with you the comp generation, which we have to coal from solar INR 7 lakh at 7 lakh units, and our average rate of power is about INR 7.
The resale of profit power is substantially lower. The potential earnings improvement in [indiscernible] cost is coming going forward.
last question, I'm sorry. But sir, can you help us in understanding what are the current pit companies with Q4 evacuees [indiscernible]
More or less like Q4. There is no major change in the space. there at this point of time.
[Operator Instructions] The next question is from the line of Rohan Shah from Valcore.
First of all, congratulations on the set of numbers just a couple of questions from my end. Sir, could you help us with the decor that happened last year due to price like the last year price [indiscernible] help us so much it was?
Last year, price degrowth was Majorly, can you highlight on that? What was the average realization for [indiscernible]
Yes. So overall yard side, talking about last year -- it was INR 338 per KG and this year average price was INR 224. So it's about 19% reduction in the yarn price.
Okay. Okay. Understood. Sir, would you say that as far as the margins are concerned and the revenue is concern we would going up a sense compared to the past year, like the last year, and we'll be achieving better margins in the coming years.
I think covers for all the total industries, ongrouncertain things happening as geopolitical. I think. So we should be looking for a bit [indiscernible]
Okay. And sir, [indiscernible] fixed [indiscernible], they said that the demand is gradually increasing, but it will take around 6 to 9 months for a more robust demand. So that be the same as you said that 6 months exports being a bit stable.
Yes. Our point of view is also similar that because of all these disruptions, -- we expect that maybe it should take solid demand to come in 5 to 6 months more.
The next question is from the line of Hemang Kotara with Anvil.
My first question is on the cotton side. Have we covered caters for the coming season like for season into March. So have we covered quarter until September or October. And the second question is, what will be our priority in FY '25 to reduce the debt? Or are we going to expect open like value-added fabric or kind of thing.
First of all, we do not share what kind of inventory we have and how much we are covered. So that is not shared for confidential reasons. Secondly, as far as going forward, we are definitely paying down some of our debt. It's in normal repayment of debt of about INR 150 crores in the next year, it will definitely come down. And whatever our growth plans will be we are going to ban have some growth plans going forward as well. So some part of it normally in the initial phases spend from the internal accruals for -- at least for this next year, you can consider that more new additional loans are going to be added to compile.
[Operator Instructions] The next question is from the line of Abhineet Anand from 3P Investment Managers.
Yes. Just on the -- you gave the yarn prices, my average for the 2 years, if you can help the fabric and cotton prices -- this year, as I recall, it is about INR 274 per kg and fabric.
This year's average action of fabric was 160 per meter. And lastly, it was about 182 per beta.
And average cotton prices.
Cotton prices this year, [indiscernible] average calendar was about 220 .
Okay. On the debt side, what -- I mean, what are the long-term and short-term bits and what are the rates for that?
Long-term debt on the safety INR 11 crores and equity of current cities, there is INR 66 crores of to debt and INR 383 crores of what we get an -- so come is about our entire 0.5% net of set of course, new debt subsidy is still perform some loans, this will be a lead about average.
So when you say subsidy still to come, so we are charging at 5.5% or we are timing a normal when the subsidy...
New loans, we are charges of in that quarter, it is at full rate. for the older loans, we are booking the subsidies because they're getting that for the new loans of INR 650 crores, they are not booking the subsidies.
Okay. Out of that INR 960,650, in new loans, and there, you are car charging it in half as a number. ones you are charging all 5.5%. So what is this issue with -- I mean is there some delay in getting or something?
We have approval for the [indiscernible].
No. due to election process, the meeting is not happening, and that's why the tension is delayed.
We are compliant with on the promise, it's just a formal sanction could come.
So this quarter is INR 27.8 crore is ideally higher, right, than in normal number?
Yes. Yes, yes.
Because 3Q was 25%, and I assume that 25 is an average number for the current debt?
Yes.
So this can go down even without debt going down, this rate can come to bid?
Correct.
The next question is from the line of Pasi from Wallfort -- please go ahead.
Just one thing on the subsidiary. You said you are accounting for the city on the new loan, which last time you had mentioned is about INR 20 crores for the full year and INR 5 crores per quarter. So once the subsidy is approved, our interest cost will come down by INR 5 crores per quarter rate.
Correct.
So right now, it's INR 28 crores, approximately, it will come down to INR 23 crores.
Yes.
And for the last 2 quarters, we have not accounted for that. So once that's approved for the last 2 quarters also, we will account for the INR 10 crores approximately.
That depends on conditions of attention, it might be from the date of section for because the subsidy year. So we have to see potential later from this debt redo. But of course, it will be for 5 years, whichever debt they will start.
Okay. And we don't see any hurdle, right? It's just the [indiscernible] so now because [indiscernible] actions are going on. So it's going to be a [indiscernible]
Because the good days of June -- so maybe the sanction, I think maybe had any time in the first week of June or so.
Okay. So actually due to model code of conduct, they are not able to pick up these kind of solutions because it is -- we have to take permission from the central [indiscernible] for this. So with the state government is not pursuing. So we'll definitely -- as soon as the elections are over, everything is created in this particular thing. So we should be able to get it through with the next 1.5 months [indiscernible]
[Operator Instructions] The next question is from the line of Nikhil Agarwal from VT Capital.
Sir, my question was regarding export and FY '22 are exports, I believe, about 3% of the top line came from export. And currently, it's about. So going forward, since the export demand is picking up, do we see this mix going towards the 70% cash this year itself in quarter 3 or [indiscernible]
I think your numbers are not right on the export for the FY '23 -- sorry, FY '22, sorry. Yes, FY '22 was an extraordinary year, where think we had a lot of export demand coming from all around the world.
So I do not foresee that going at that number is going there. As a strategy, we would rather keep it ourselves limited up to the bank of 55% to 60% on the export side.
Your realizations in domestic and exports are the same, right? -- digital the export it is more or less same.
It is definitely maybe there's not anything in the major to talk about as far as realization that's right.
And you mostly export -- or is it -- or do you export it fabric as well.
Our export share of fabric also substantial. So both are both are getting ready.
Okay. And so what was a clarification, you said can you just repeat the [indiscernible] FY '24 and FY'23.
They want the number of yarn are annualization of funds in cubilization and cotton prices for last year as I already told, this unrealization for the year is INR 274 per case, while that was last year 3480. [indiscernible] was 150 per meter last year at 82 per meter.
Okay. And this is FY '20 and FY '23.
Yes
Okay. And at an average [indiscernible] or average cotton interest this year was INR 180, and faster was INR 220.
[Operator Instructions] The next question is from the line of Amit Palanpur from East India Securities.
Sir, can I get what is the debtor payment in FY '25 and FY '26 distribute I think it is INR 145 crores with the 5. And in FY '20, we did INR 17 crores. should you, am I right?
Yes, INR 134 crores.
Okay. And what is the CapEx expected yes?
If not a plan epti as we get the plant steady for our Cepel let you know about that. Normal CapEx within on the routine nature is about INR 1,500 crores is happening. That happens every year due to previous requirements for debottlenecking and others other things. About 2 million capital as notice decent.
[Operator Instructions] The next question is from the line of Priya Gupta from JG Capital.
Congratulations to the management for giving for good margin performance. So I have a couple of questions. First is -- now we have charged INR 25 crores depreciation. So interest or depreciation we are charging down for the quarter and rate now.
Yes, this is INR 36 crores every quarter will be charged. So the average -- the depreciation next year is expected to be on the currency of business is about INR 13 crores. So I think this is what adaptation is going to be in the next 3, 4 quarters at least.
So my question is, what would be the maintenance effect for the existing footprint cross?
Normally, we do not have a kind of maintenance to do all the maintenance part of some equipment and other is normally put to the revenue, it is. And if we do some value addition from debottlenecking or we add some machines, then only with credit consider the FX which has just now told is about INR 24 every year.
Okay. So my last question is like what is your view on cotton prices and what income in current season?
I have shared in my opening commentary as well that the cotton prices have actually remained stable from 58,000 plus minus INR 3,000. It has been there for last 7 to 6 months and we expect it to remain like this only. We are expecting very good international crop in various parts of the world and especially in [indiscernible]-- and also the coming U.S. [indiscernible] as well as Indian portion is also looking good because of the forecast of the amount. So I do not foresee any major increase in the cotton prices, at least in the calendar year.
[Operator Instructions] the next question is from the line of [indiscernible]
Asia India.
I have a few questions on the growth in custom utilization fund. So like you mentioned that you've just rolled around 73,000 out the 110,000 capacity on the Yan fund and 5,000 of the 11,000 capacity right now, you have a decent amount of capacity left -- so is it fair to assume that going forward, we will have a tough trigger of volume growth as well as realization growth flowing into the business has been improved -- and how do you see the volume going in the next 2 to 3 years?
Actually, for the young, our capacity or utilization was about 91,000 tonnes in the last year. I think you must have seen the sales number 700 .
Summer yes. Yes, yes. But we have internal consumption also about 18,000 in terms. So that has to be added to this -- so on the , the capacity utilization fund, we do not have much less how the yarn business is concerned. We also to, if we see on annual 12, maybe another 10% to 12% capacity utilization will improve going forward. As far as our leading capacity sometimes, there we can gain information capacity, we can grow about 7% to 8% there as well. estimating utilization level is slightly less. So there, we can help a slight improvement over there. We also taking on that as well.
So considering everything put together, we should be in a range of volumes you should consider [indiscernible] volumes in the coming years. As far as realization -- as far as realization are concerned, as I just now highlighted cotton prices, we expect to remain stable only pressure now left in the demand. If we foresee a good demand going forward, then only the prices could substantially improve on the sale.
Understood.
So when you say that you don't have a lot of capacities left growth now, we don't have any kind of static plans will be working on that.
So is it fair to assume that you will be able to much faster than then what is the time line of putting up that omnibus if we are at a cyclical move, then we would want to have in that as for as and when demand forms to be able to cover the share of the demand, right?
So how are you pleased with that or fore because you believe that it's almost where the icon move.
We are just now I completely believe in what you said. And accordingly, we have just now putting substantial petty CapEx in place, and it is fully in our quarter itself. We added about 35% of our capacity in last 6 months only that -- going forward also, utilization and everything is on drawing board at the moment. So we'll -- once we are ready with our plans of what capacity we are going to add what our that will exactly share with you about the same. So it will be definitely for on the -- but will it be fair to assume that we'll be able to put up a city fast and utilize the in as well, right? -- of course, because now the delivery availability of equipment is also quite reasonable and also ramp-up we have already the infrastructure to ramp up the capacity.
So definitely, we should be -- we are in a good stead. We have already demonstrated this in the past 4, 5 years, continuously with of the capacity to we're able to ante fast.
Understood. Sir, you have also guided towards margins eventually moving into that 16% to 20% range. So is it like -- how do you see that evolving as a longer-term summit, I would not ask for next year, you've said that we will try to target the 14.5% range -- but how do you see the market volume over a normal period of time? Because from a steel your perspective, this 12%, 13% for the year is more or less no significant role that you have seen as a business.
Exactly this is there is the margins of selling industry in the range of 10%, 12% and overall there have been lower levels, which we have seen in the last 8, 10 years.
So definitely, it is going to improve from there. Major -- if you see industry as a whole, major trigger has been the exports. We have quite a substantial capacity dedicated towards export in the form of yarns or subway or governments in India such through exports went to move on. So that is the flying year today. So that is -- if there is a demand and substantial demand coming up from that spread, definitely, we should expect better margins going forward. And that is expected as well.
Once all these trade agreements, which is going to happen with U.K. as well as you in various other countries, that should also to the demand going forward. understood.
So 1 last question. So given the kind of debt we are sitting at right now and given that you're almost utilized fully, and you expect to get some additional amount of take -- how do you see improve things? How do you see the vestiture and because of fact we have always seen peers,
So how do you see these 2 parts always considering the fact that you are also aiming to have certain amount of CapEx, but maybe you are taking the deal accruals. But just wanted to see how do you think the ROC is expanding in the next the other from a longer-term perspective, may you see as a project.
Actually, the total to be exiting is about 1616 levels. which is very, very reasonable. Plus, given the nature of the industry, where the CapEx involvement is quite high to putting up capacity and using it as -- so considering that this is a very reasonable level. And we would try to continue to see that we remain in this 1 to 1.2 bandit. That is 1 part. Second part is, as far as your ROC is concerned, how these debts are at subsidized levels at 5.5%. So we do not see any logic in retain them, eye making -- if you see our return on capital in return on assets turning 14% -- in a normal margin level, it should be 15%, 16%. So if you have debt at 5% level, you should rather leverage it retaining it. So to keep it at a reasonable level. I also stated in my earlier call to there that we would like to keep this particular debt interest cost below in the range of 2.3% to 3% recover revenues.
As long as that is there, plus adequacy in the range of 1 to 1.2, we are quite comfortable meeting the growth plan as well.
Understood. And just 1 small clarification in the new tender, you will be remain on the interest for then when its approval is received from the government. Is that correct?
Yes.
The next question is from the line of Anil Kumar who is an investor.
We'll move to the next participant as there's no response. [Operator Instructions] The next question is from the line of Saket Kapur from Kapur Company.
[indiscernible], firstly in your presentation and also I think for this your opening remarks for the certification, you spoke about increasing the proportion of value-added products. So with now the capitalization of around INR 340 crores from capital work in pet your asset -- what should be -- what is the current current year proportion of regulated and extend tractate.
At this point of time, if you see our breakup of the revenues, the fabric portion in sales is about '25, '26 points of our total revenues. So that is definitely a value-added portion. Plus, we have in the spinning business also certain value-added products. So that constitutes around 14% to 15% of our sales. So that all put together, it is about 30% to 40% where we do a reasonable value addition in comparison to normal commodity arm.
So this proportion slowly is going up -- we expect that, okay, we should be doing it more than 50% value addition proportion has to be more than 50% of our total revenues. So -- this is about as far as capital asset is concerned, yes, we can distinguish between the 2, the CapEx we are doing for public and other business, but we cannot extinguish for the value-added on specifically how much is being given because a continuous process that you have various equipment and production speeds change and other things with us. So that can get a better value-add product. Germany rate 34% to 50%. How do -- what was timetable -- it is about 38% to 40% at the moment. is 40 to 50 Yes, it's a quarter which we should be able to -- if we are continuously exploring and -- even if we do not do any CapEx on the substantial CapEx, we should be able to exist in the in the next 1.5 years. And this entire INR 340 crores CapEx has gone in building up the an capacity No, no, it is not INR 340 crores. Total CapEx has been done over the last 1.5 years as of working capital, capital working program at last balance sheet -- since then, we have added another INR 500 crores during the last year.
The total total CapEx done was about INR 850 crores, out of which nearly 50% has gone to the value-added portion of weaving, processing and meeting part that has gone there and reason in skilling also, we have taken up certain value-added products also in that. So a portion of that has again gone to the value-added and -- so when we look at your power and fuel cost, if not a more renewal to mix can, what has been our investment in the renewable segment over the last 3 years? -- of all renewable mix factor at this point of time is about 7%, 8%, but 7% to 8% at the capacity which we have, we have about -- around 7% to 8% depending on the generation that is there. And the investment is in the range of -- in last -- total investment is nearly INR 100 crores, INR 250 crores, INR 200 crores, out of which we have invested in 3 years about INR 75 crores, INR 80 crores.
Those in the convention only that we have continued assets for other insurance, if you could give the mix and decor where the investment as well. And they are everything on solar. -- everything on order. So I crore investment in solar is translating into only 7% of our dependence on the at Yes, exactly, exactly.
Okay. And sir, going ahead, this will be turning more of the cost or cost per customer? Are we [indiscernible] power from the stable actuary board and the state more power cost is about INR 7,
INR 7 were as touch.
Okay. So a significant cost.
Yes.
So sir, as we think that there is so much of investment in the solar space and then the core return ratios and the cost will go down significantly. So do we have any plan to going ahead, lowering the age cost of power just going through investment or also putting of resources with other solar manufacturer or adapting of its plant and the sharing in it equity investment as it being the case with other con also.
So what's the cost you want to and that will also give us an ESG score going ahead, a positive ESG crop.
Yes. Actually, that is always on the card. But if you see, there is a restriction by the antigovernment as well as the trade governments of not putting up power capacity in terms of capacity more than what is your sanctioned load. As of now, we have about 50 gigawatts of sanction loads to the maximum we can go up to 150 megawatts. And in that 50 megawatt, the actual power generation is only about 16%, 17%, an above 17%. So the maximum the solar which we can do is about 17% of our power requirements. And we are already at pet and another half, we are continuously excluding that. City, as far as the reduction in the power cost is something, it's a continuous quarter. We work very efficiently on that. We continue to see that continuously evaluate our power cost in different business perimachines different businesses as well, how we can continue to improve upon patent.
So continuously, that process is again helping us to reduce our power costs.
Right. And lastly, we got part out of the exports that we know. So what is the ROCE receivables for FY '24
I think majority road, how much is the roads last year,
About INR 40 crores is visible to total load debt for the full year should be about INR 5 crores or Exact number is not there with us, I'm sorry if -- and how much by going to be accrued or the certificates are still running in the receival and we will be selling them how much have we realized I think half we realized the half is there within the books still to be realized.
Have made provision for being that amount is profitability happens this year. discounted today we will [Foreign Language] that accounted whatever we sell it. We deferred accounted for the 100% value.
Okay. So the INR 17 crores realizing will be for the next year?
Yes. So that is already approved for average rates are about 98.5 9. Accordingly, the [indiscernible] how much.
[Foreign Language] 98% on content.
Only to be concluding at the CapEx part of the story is done now, and we will be -- so the capitalization this year and previous year of INR 500 or so would be the increased turnover, we should be going on a quarterly run rate. I think so the quarterly rent for this quarter was core but the assets which have been capitalized the benefits of the sales will be accrued into this financial year. So going ahead, taking into account and running at the current exit prices of much quarter, what should be our quarterly run rate of revenue.
I think we have reached the top level in this quarter itself. There is a very small capacity in is to be used. If you see the INR 850 crores investment its bond would have added about INR 850 crores of up INR 900 crores of top line. We were at INR 2,400 crores of top line last year. And then should add another INR 900 crores.
So that is about INR 3,000, INR 200 or INR 2,000 crores lines. Yes. I do it on a Yes, I'm in the.
The next question is from the line of Tejal Manojit Elara Capital.
And I just want to ask what is the capital consumption per se [indiscernible]
20%, 30%
Ladies and gentlemen, due to time constraint, we will take the last question from the line of Rita Sarama with GRV Capital.
My question is regarding the potential impact of the FDA on our revenues or other the benefit of revenues will we be a director and indirect participant benefit what percentage of the total revenues come from the U.K. region. And what could be the ballpark figure that we call it into our bottom line First of all,
U.K. means with U.K., it still is a very small portion of our supplying in , we have exposure company about this, not much. as it happens with the you as we that is a substantial portion of our sale, which is more than -- so there it is online now been depend what is going to accrue to us and depend on what kind of pounds and divisions have been agreed.
Today, we are at a disadvantage of in 78% in comparison to competitors like Pakistan and Turkey there where we have our customers capturing that kind of reduction in the top prices from our. So hopefully, we should be able to take care of a major portion of the fence. [indiscernible].
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Awanish Chandra-- over to you, sir.
Before taking your closing comment is small car, 1 of your peer is doing good in technical textile and 1 of your largest peer has just announced that they are going into technical textile. So have you ever thought getting into technical because rather look for it huge space globally. And definitely, this is a very huge sales grow and have a lot of foot to grow because in India till we are ancillary, smaller size. And definitely, as a company, we keep on looking at all the opportunities in the technical -- so even if something comes up, definitely, we will update that as Okay, sir.
Thank you very much, [indiscernible] for giving us an opportunity to host the call. For any final commentary before the closing.
Sure. First of all, I thank everyone for taking out the time for learning this earning call. I hope we have been able to address the queries. And also thanks SMIFS and [indiscernible] hosting this call. For any further information, kindly get in touch with our finance team or our investor relation via -- thank you all on the time to find us.
On behalf of SMIFS Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.