Tata Power Company Ltd
NSE:TATAPOWER
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Tata Power Company Ltd
Earnings Call Analysis
Q2-2025 Analysis
Tata Power Company Ltd
In the latest earnings call, Tata Power reported a remarkable performance with a 51% increase in profit after tax (PAT) to INR 1,533 crores and a 53% rise in EBITDA, reaching INR 3,800 crores for the quarter. Despite a muted power consumption due to extended monsoon conditions, the company anticipates increased demand in the winter months. Notably, in the first half of FY '25, EBITDA rose 17% to INR 7,158 crores, and PAT grew 41% to INR 2,721 crores.
The company highlighted its 4.3-gigawatt manufacturing facility for solar cells and modules, which is now operational. The module plant is running at full capacity while the cell plant is expected to achieve stable production by the end of November. Initial results indicate high efficiency and productivity levels, putting Tata Power ahead in domestic solar production. This operation will significantly improve the company’s performance in upcoming quarters.
Tata Power is scaling up its solar rooftop projects, with commitments to install 10 lakh rooftops in states like Odisha and Uttar Pradesh. The company also anticipates strong growth in third-party engineering, procurement, and construction (EPC) projects, with significant orders in the pipeline set for execution in the next two quarters.
The transmission and distribution segment is thriving, with four projects under implementation. Two of these projects are expected to be commissioned in FY '25, contributing to a robust order book valued at over INR 15,000 crores. Additionally, Tata Power won a notable project for a 765 KV transmission line in Odisha, showcasing its expanding footprint.
The company plans to commence work on its 1,000-megawatt pumped hydro project starting January 2025. Moreover, Tata Power is making strides with a 600-megawatt project in Bhutan, with ongoing construction activity, affirming its commitment to renewable resources.
Tata Power's financial health remains strong, supported by prudent debt management, and improved credit ratings from agencies like S&P Global, which upgraded the rating to BBB-. The company aims to maintain its debt-to-equity ratio comfortably below 1.5, bolstering investor confidence.
Looking ahead, Tata Power set a target of adding approximately 2 to 2.5 gigawatts of renewable capacity annually, with specific boosted efforts for the remainder of FY '25. For the solar manufacturing segment, anticipated margins are expected to stabilize around 10% to 12%, contingent on market dynamics and potential support from state incentives.
The management acknowledged the recent approval of regulatory assets related to Tata Power Delhi Distribution Limited, which is anticipated to positively impact the balance sheet over the next two to three years. The strategy to shift focus towards complex projects, such as hybrid setups, aligns with market needs for renewable energy solutions.
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Ladies and gentlemen, good day, and welcome to the Tata Power Q2 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Dr. Praveer Sinha, MD and CEO of Tata Power. Thank you, and over to you, sir.
Thank you, Roy, and good evening to everyone, and thanks for joining for the call. On behalf of Tata Power and on my personal behalf, I would like to extend my best wishes to all of you for a very happy and safe Diwali. I have over here my colleague, Sanjeev Churiwala, CFO, along with Mr. Kasturi and Rajesh from Investor Relations.
We have already shared the presentation with you, but I just wanted to take you through a few important issues. First is the last quarter, we saw a normal monsoon, and which extended not only right through the quarter, but also extended in October. And due to which the consumption of power was very muted. We, of course, expect that because of the impact of the long monsoon, the winter will be a little severe, and there will be an extra demand of power during winter months.
The Section 11 has been extended due to this reason because there is an expectation that many of the plants, especially coal-based plants, will be under maintenance during this period when the demand is less. Also, many of the hydro plants will not be in the position to generate during winter months. And hence, the demand of power from the operating coal plants will continue to be there. We have already shared with you that this quarter, our PAT was -- before exceptional items, was up by 51% to INR 1,533 crores and EBITDA was up 53% to INR 3,800 crores.
Similarly, in the first half of this year, the EBITDA has jumped by 17% to reach 7,158 crores. And PAT is also up by 47% -- 41% to INR 2,721 crores. Some of the important things that have happened in this quarter. One is that our 4.3 gigawatt manufacturing plant for cell and module are operating. Our module plant is operating at full capacity at 4.3 gigawatts. Our cell plant, the first 2 gigawatt of cell has already started production and now getting stabilized and will be fully stabilized in production by end of November. The second 2 gigawatt also is going to get the commission in November. And hopefully, by end December, they should be stabilized and producing at full capacity.
So you will see marked improvement in the performance of the manufacturing plant from next quarter onwards. You would also be happy to note that this plant is showing very good initial signs in terms of productivity and yield for the module plant. And also in the cell plant where we find that the efficiency of the cells being produced is possibly the highest in the country at this stage and with much better yield. We would also take the opportunity to invite you to visit the plant, and we'll coordinate your visit to the site in November or December so that you can see for yourself where the plant is operating and state-of-the-art that facility has been created. We have -- we continue to do well in our large utility scale projects as well as third-party EPC. And you will see large quantity of these projects getting implemented in quarter 3 and quarter 4.
In fact, there's a very large quantity expected to be commissioned within before March this year, especially most of the third-party projects will get commissioned before that. You will also see that our work in rooftop solar has really picked up pace. We are not only one of the biggest in the country, but our penetration in various states have increased tremendously.
We have huge traction in terms of order and execution of these rooftop projects in many states. And we have committed that we will be doing 10 lakh of rooftop in Odisha. Similarly, 10 lakh rooftop in UP and sell at rooftop in Rajasthan. Apart from many other states, we are working very closely, especially in Kerala and Chhattisgarh and a few of the other states also to see that our penetration of rooftop increases in line with the PM Surya Ghar program, and many of the initiatives that we have taken to increase our channel partner will start showing results in the third and fourth quarter.
Our transmission and distribution businesses continue to do well. Four of our projects in transmission are under implementation. Two of them will get commissioned in FY '25 and the balance 2 in FY '26.
Similarly, we have recently won another big project, 765 KV transmission line in Odisha from Paradeep to Angul. That will also start work in the next few months. And we expect to take many more new transmission projects, which are coming in different parts of the country in the next few quarters.
Our business in pumped hydro where we had earlier shared with you last year, we had taken you to the site is also picking up pace. The first 1,000 megawatt, our Board has approved the proposal today, and we will start the work over there from first January '25. The project has received all the necessary approvals, accepting one approval, which we expect within November, December.
And some of the activities have already started. The construction activity and full-fledged work will start from January. Similarly, the 600-megawatt of Bhutan project, we have signed the shareholder agreement, and we will be starting work from January of '25. In fact, already the diversion tunnel work has started at side. And we do expect that it will pick up a lot of pace once all the documentation and the financial closure is achieved within November, December.
We are also working on our 1,800-megawatt pump hydro project at Shirawta. And hopefully, by mid of next year, the work should start once all the necessary approval are in place. Our Odisha discount continues to do well. Of course, it has been badly impacted during the monsoon months. And then we had the cyclone also last week, but they have been able to very quickly restore work and restore the network, which was appreciated by the people as well as the government of a very quick recovery of the network.
And I think the way the whole business has been structured, we will possibly be able to replicate this sort of an arrangement in many other states, which are in discussions with us about distribution opportunity. Are waiting because of all the initiatives that we have taken has improved tremendously, both ICRA and CARE have enhanced our rating and also S&P Global, which has upgraded the rating to triple B negative from BB positive, which is actually sovereign rating.
And we do expect that the way the company has been able to take care of its balance sheet, it will improve further by 1 month or 2 months in the coming quarters. I do believe that the way the company is today is structured and focused on various businesses, including new businesses like EV and rooftop and the businesses in our renewable space and clean energy space. We'll be able to give unique solutions to customers of providing them 100% renewable power. And the company has developed many solutions for that, and this will not only be for the RTC and FDRE projects for discounts, but also for many of our commercial and industrial customers with whom we are working very closely to provide them 100% clean energy solution.
So I strongly believe that Tata Power will continue to do exceedingly well in the future quarters based on the strong fundamentals and foundation, it has lead for itself and do look forward for your support in this direction.
I would now request Roy to open the floor for question and answers, and we'll be happy to respond to you.
[Operator Instructions] First question is from Mohit Kumar from ICICI Securities.
My first question is Tata Power solar system manufacturing capacity. So how are you thinking about this capacity even plan to expand the capacity or indicate backwards? That's the first question. And the related question is, how long do you think it will take to stabilize your cell line?
So as I mentioned to you, we are in the process of stabilizing our cell line. And the task before us is how quickly we can stabilize, how do we improve the yield, how do we improve efficiency? So this is a big task in our hands. We want to make it best in terms of all operational parameters and financial parameters in the country. And we are right now focused on completing these activities before we decide on any new steps in future.
Understood, sir. Good to see, sir, that this how much time project is taking off the ground. But my question was a large bit was connected in Maharashtra in recent past. It seems that we didn't participate in the tender. So how are you thinking about tying up this tender -- tying up this [indiscernible] of power plant, which we are undertaking?
So our objective is that we will bundle this from storage power where we will be producing nearly 8 hours of peaking power along with solar and wind to not only discount under the DR and RPC product, but also to many of our industrial and commercial consumers who are looking for clean energy solutions. And I think we'll play a very, very critical role in supporting many industries in the country who are looking at green energy as the input for the activities that they carry out. So we have a huge number of inquiries for all these types of projects, and we will soon be tying up with many of them.
My last question on the solar order book. I think accretion is solar order book helps on the lower side. We are at INR 150 billion or INR 15,000 crores, right? Is it the opportunity which is low or this competitive intensity, which has gone up in recent times? I'm talking especially about third-party solar order.
So there are 2 parts of this. One is that we have a large order book of third-party, which we are trying to complete within this financial year, and you will see that March major quantity of our third-party order book we will compete. .
The second is our own more than 5 gigawatt of renewable projects are there, which are under various stages of implementation. We want to complete those also so that in FY '26, all these projects are completed. And then we build up a pipeline of projects for FY '27 onwards. So that's what is our plan. We decided that we will only go for complex projects, that is are hybrid, solar and wind or hybrid projects and storage projects of solar, wind and pump storage or battery storage. So we have been very calibrated in the way that we have been bidding. And we will continue to focus on those type of projects, which bring greater value to the consumers.
Next question is from Sumit Kishore from Axis Capital.
My compliments on a strong set of numbers. My first question is what would be the phaseout of the RE capacity addition for under construction projects on your books in FY '25 and FY '26.
So our payout, we have already given that how much capacity we will be adding in FY '25 and what capacity will come in FY '26. All the so-called nearly 5 gigawatt of under construction projects will get completed by FY '26. That's our plan on which we are working. And this is also shared with you in our presentation.
Sure. You had mentioned 2 gigawatts to be commissioned in FY '25 on the previous call. Is that on track?
We had said that on our yearly run rate will be about 2 to 2.5 gigawatts. And that's what we are working on.
So what was the capacity utilization for your module manufacturing facility in Tamil Nadu in the second quarter? And could you please speak about the end use of the modules manufactured? How much is for your internal project requirements and how much is third party?
So we'll be able to share those details in our presentation. I think it's already there. I don't have the breakup of, but yes, right now, it's virtually equally divided between rooftop solar, third-party and our own projects. And going forward, we will try to complete most of the third party in third and fourth quarters. And thereafter, most of the quantities that we'll introduce will go for our own utility scale projects and rooftop projects.
Okay. And there seems to be a significant increase in your approved regulatory assets in Tata Power Delhi Distribution Limited.
So there was a lot of regulatory asset amount, which was not approved earlier. Now that all of it has been approved, the liquidation plan is being worked out by the commission regulatory commissions, which will get amortized in next 2 to 3 years.
Good to hear that. Just the last point, are there any nonrecurring items that you like to call out for Q2 either in other income or any other regulatory heads?
So Sanjeev will respond to this.
Yes. So nonrecurring, I don't know, but we call it one-off because as Dr. Sinha said, and you alluded to that and Tata Power believe. We have received approval for all regulatory assets. And there's a liquidation plan that will happen in the next 2, 3 years. We already have some liquidation in quarter 1 and some liquidation in quarter 2. And when I look at that one-off, we had at TPDDL INR 170-odd crores of liquidation, which is shown as part of the income in our distribution business.
And then we also had a dividend that we have received from ITPC of INR 221 crores. And this dividend cost likely, while this is a dividend that is a kind of accumulation of the past profits we have received. But more than likely that we will still continue to have recurring dividends coming from ITPC in the subsequent years. Yes, it's a good recurring item to have and good one off to let you know.
Next question is from Aditya Vikram from Digital [indiscernible] Research.
It seems the profit for Q2 and the EBITDA for Q2 has been aided by lower fuel cost. Do you see it sustainable? Or you think it will again go back to the normal rate?
Fuel doesn't move the profit up and down. In regulatory environment, normally you get cost plus, right? So it is not because of the fuel cost and the profits have moved up and down. It's because of most of the clusters really performing well. When we look at our renewal cluster, the profitability for the current quarter is INR 300 crores versus INR 186 crores in the subsequent -- in the previous quarter. It's up by 61%. Our generation cluster, our transmission distribution cluster, they have all performed well.
The next question is from Satyadeep Jain from Ambit Capital.
Three questions. One was on Mundra. Maybe what's the update there after the availability was down in the second quarter in latest update? And you've seen extension of Section 11 and that keeps happening every few quarters, but there's nothing -- no update on supplementary PPA. There have been solar plus thermal awards from MSEDCL and different types of awards. But why has there been a delay on the supplementary PPA. So just on Mundra overall?
So one is that Mundra plant suffer damage of the coal conveyor system due to heavy rains on, I think, 27th of August and whole of September, we could not operate the plant. But within a period of one month, the conveyor system was repaired and it is now operating at full capacity. So the whole of October, it has operated at more than 90% probability. There is one more pump that has to be repaired, which has already been repaid and so we do expect that Mundra in November, December should do about 95% to 97% of ability. So it will catch up, and meet the yearly 80% requirement.
Secondly, the discussions have been going on with the state governments on SPPA. Since the Section 11 continues to get extended, the SPPA discussions also has not been able to get concluded. But I do expect that we should be in a position to close this issue on SPPA with the states within next few months. Of course, the Section 11 helps us to get full pass-through cost of the Mundra plant. And hence, something on similar lines are being discussed with the 5 procurer states for finalizing with them.
Mr. Sinha you're suggesting the delays mainly because of Section 11 being extended, so there is no urgency. Is that the main reason for delay in Supplementary PPA?
Not agency, but yes, it is getting a little extended because of that. I expect that, hopefully, there is now a sincere effort that is being made from all sides that we should quickly finalize the SPPA and move on with the agreement, which can be there right up to the complete the period of the next project.
Okay. Second question is on the Bhivpuri GHP. It is a largely a brownfield. So we thought the CapEx would be relatively lower at somewhere between INR 4.5 crores to INR 5 crores. It seems that there is a cost inflation there and maybe some change in configuration from 6,000 megawatts hours to 8,000 megawatts. What is driving that maybe capital cost inflation for this brownfield pace?
What happens is each project is dependent upon the local site conditions. And since the site over here is an existing site and also the level of water from where the pen stock will come, the alignment of it has to be done in secure that it is sustainable for a long period of time.
Secondly, many of the pump storage projects of 6 hours, we are designing over here for 8 hours with opportunity to enhance that also. So I think every project has peculiar and specific requirements. And that's why the cost has been worked on good line. And these are updated costs. These are not costs which the initial cost. This is the final DPR, which has been done through various iterations. So we expect that we'll be able to complete the project not only at this cost or may be a little lower than this cost.
Okay. So the -- given the 44-month time line safe to assume that this project will commission sometime in FY '29 and maybe the other projects we cannot view this cost as a benchmark for the remaining 1,800 megawatt cost. Is that fair?
There may not be too much of a difference because that project also hopefully should start by mid of next year, and we are in the process. But as I mentioned to you, each project has a specific design and architecture, and we need to consider their topography, their condition before we can take a call of what actually. So thumb rules are just good enough for initial discussion. But when you do a final one, it takes some more.
Just 1 quick question. On the EPC, I think recently, the target was about INR 11,000 crores of revenue in FY '27. Given the order book and you're looking to execute in the next 2 years, is there a possibility of risk to that INR 11,000 crores target that you had for EPC revenue in FY '27?
We'll share with you some more updated information when we have the analyst meet in December. So with the way the business has moved, you will see that with more and more pipeline of projects -- our own projects coming in, our focus is more on our own projects rather than third-party EPC, because we would like to conserve resources and use it for our own purpose.
Next question is from Murtuza Arsiwalla from Kotak Securities.
Two questions. One, actually the Delhi piece has already been addressed. On this Bhivpuri project against the project cost of INR 5,600 crores, is there any indication of what could be the potential revenue on an annual basis for this project? Any return profile that you can talk about. Second, a smaller piece, but on Odisha, the second quarter seems to see some drop in fact, if there is anything out there that is nonrecurring or one-off.
So Bhivpuri, you will -- we'll be able to share more details, sir. But the returns on all these projects we have already mentioned our -- definitely, what we get in our regulatory business, for nothing less than what we did in our regulated business, I think the teams, which is there. The second is you are right that Odisha -- last quarter was a very tough quarter in terms of collection because of rain over there, access to many locations, especially in remote and semi-urban areas was difficult and the collections were impacted. I think they will catch up and September collection has been very good. I think October also which will pick up pace. And hopefully, in this quarter and the coming quarters, whatever collection shortfall has been there will be made good.
Next question is from Sudhanshu Bansal from JM Financial.
This feel like in the last 2 quarters, we have been doing around 250 to 260 gigawatt of the -- megawatt of the solar capacity addition. And on a yearly basis, we want to be around 2 to 2.5 gigawatts. So how we are planning to scale up this number to this thing is the first question, sir.
So many of our projects, which we were supposed to execute in Q2 and Q3 have got delayed because our DCR line, our cell lines were delayed. We'll catch up and do all that in Q3 and Q4. So most of the other work at these sites have been completed through the balance of plant. It's just that once the volumes -- the DCR volumes are ready, we will be -- so you will see a much faster pace of execution in Q4 once the models are available. Similarly, many of the other projects, which we are trying to prepone, which were part of FY '26, and you will see the results in Q4. So you will see a huge amount of capacity added, which will happen between now and Q4.
Okay, sir. Sir, second is like a few quarters that we changed our strategy to focus on the captive renewable capacities. So any assessment that how much is our group captive can become in terms of the size, maybe in 2 years, 3 years?
I think the details have been shared with you earlier. We'll give you the updated numbers once we have been the next round of analyst meet, but Sanjeev, you would like to add anything?
Yes. So if you look at Slide 32 of the presentation that has been uploaded, against the total order book of INR 15,000-odd crores, almost 50% of the order book is for the Tata Power group companies. And we would expect more in the pipeline to come through. But yes, we're working on our strategy going forward. So I think we'll be meeting up again somewhere in November, December. We should be able to give you more update. But I think the trend that we have earlier mentioned, will continue with the similar trends.
Okay. Sir, just last question that as it was a media news that like we have come out with some tender for wind and WTGs for 3 gigawatt. Any color on that in terms of prospectives and the timeline for ordering?
Well, we examined all these bidders based on merit. So we do a technical and commercial evaluation of them. And based on the least cost, we decide on suppliers for the...
Sir, any time line that when we want to place orders or anything?
I think before December, we would like to place orders.
Next question is from Vishal Periwal from Antique Stock Broking.
My question is on the listed PAT number, a couple of one-offs that you mentioned. So the slide 52 has that exceptional item of INR 440 crores. So that's -- I mean, like a cumulative number to take to come to adjusted PAT.
Yes. So you're talking about the exception item, right, which is INR 440 crores in the bottom line. So that is a one-off exception item, and that has happened because companies or subsidiaries of TPREL got merged into TPREL. And because of that, there's a small stamp duty implication of INR 140-odd crores, which is a cash outgo that will happen any case after the year after all the assessment happens. And there's about INR 330-odd crores roughly on account of deferred tax write-off because post-merger, there will be -- the tax regime will be different and then the existing tax write-off has to be done, but these are all noncash and onetime.
Okay. EBITDA level, there is no exceptional that you have. So INR 3,800-odd crores is a recurring sort of EBITDA for us?
Yes. That's correct.
Okay. Got it. And then second one is on the Slide 32, where you have given a breakup of the EPC project, I mean order book that we have. So what is the difference between Tata Power group line item and like group capital. So I mean, earlier it was not there, so we had separated this. So what is the difference in this.
This is the EPC work that the EPC division would be doing for the various group companies within that Tata. For example, if we are executing growth for Tata Steel or Tata Motors all of that will...
And the group captive is group captive, which we do for -- group does not mean Tata Group, it can be a group captive for any third party also.
Okay, okay. And in terms of megawatt of this 15,264 it will be how much?
Yes. It's -- this was very difficult to because it would be a mix of various types of projects, but I would say about 4 gigawatts, 3.5 to 4 gigawatts.
Okay, sir. And one last thing. So in terms of the project that we have on Slide 9, where we have talked about total pipeline and further 21,668 megawatt that we will have. So Bhivpuri is not yet added in this particular number? Is that right?
Yes. So this was made before the Board meeting. Bhivpuri has got approved today in the board meeting, so that will get added. And I don't think -- okay, hydro include in this. So Bhivpuri is not added, you will get Bhivpuri -- you need to add 1,000 megawatts. So it will become 22,668.
Got it. [indiscernible] one is there, I mean, hydro...
So very happy to see that you already got to the presentation and have very pointed question on the slides.
The next question is from Santosh [indiscernible].
I just have one question about our borrowing profile. What is the plan for debt reduction in the next 2, 3 years, if you can just elaborate?
So I think the way we are narrating is the kind of leverage ratio that we want to have in the coverage that we want to have. Standing as of now our debt equity is in a very, very comfortable zone. So we don't think there's any need for us to reduce debt further, but to ensure that I debt ratings are on a very healthy scale and our leverages are very, very healthy as compared to our peers.
Okay. So it may go up also. Does it mean that depending on the projects we have or the expansion plan we have?
Yes. So the idea is to maintain a healthy debt equity and the debt coverage and ensure very high ratings or that.
Okay. So what is the comfortable debt equity ratio you prefer to have something like below 1.5?
As of now, we're doing around that. So assume 1.5 to 2x for infra company, it's a very healthy issue to be in.
Yes, sir, agree for a power company it is so. But generally, Tata Group, all the Tata Group companies are debt [indiscernible] now over the past few years. So that's why this question came through.
Next question is from Amit Bhinde from Morgan Stanley.
Yes. Just one question on your solar module manufacturing business. Last quarter, you reported about INR 1,000 crores of revenue on that and 614 megawatts. I think roughly your realization was coming to around $0.20 or so margin of around 11%. This quarter, I see margin is close to 9%. And if you can help us with a megawatt and in a market we are hearing that some of the sales are happening at around putting $0.14, $0.15, $0.16 as well. So how is our realization?
We have given our details in this slide number 52, and you can see over there. So our production has increased in the second quarter. And of course, our margins are based on how we can be competitive in the market. But definitely not what the price range that you have mentioned. It is linked to the quality of the product and what sort of guarantee and warranty you are giving for there and what will be the efficiencies. So I think we definitely command a premium in the market, which are this many others who do not have the quality and the backup of services that we offer.
Can you just help us with the megawatt sold this quarter, because I can see the -- on Slide 52, revenue, EBITDA, et cetera, you have provided, but...
You're asking megawatt? [indiscernible]
So we will provide you the megawatt, not an issue.
I think the only thing that I would also want to add is we are still in the ramping up stage. So I think when you calculate the margins and the trends we will not give you a right indicative number. Quarter 3 will be a better number to look at.
So we have done 830-megawatt increase.
Okay, okay, 830 megawatts right. So ballpark, would you target around 10% to 12% of margin?
The range we are looking at. No, again, it depends on what sort of market penetration we are looking at -- and again, many of these things are stabilizing. Many of the things also will be impacted once we start getting the state government support and incentives that we are supposed to get.
And also, one thing I'd like to mention, this is very difficult for us to kind of compare this with another plant who's in a stand-alone sale in the market. Right now, most of our production line is dedicated to our pipeline that you have. And the overall profit that we're looking at is the composite properties that we're making against those bids and the cost that we use. Right now, there's a cost that has to be supplied and there's a transfer price in margins, right? So I think on a stand-alone basis, I'll not be able to compare it with other people who are producing to sell in the market.
Right. The other question that I have is on your Mundra coal and shipping cluster. So if I look at your EBITDA, that's been mentioned INR 516 crores. If I remove the shipping EBITDA, the balance EBITDA is close to around INR 437 crores, which I assume is for Mundra plant. We had lower sales, so implied EBITDA per unit is coming pretty high, 1.2 et cetera versus 0.45 in the Q1 using the same logic. So why should that increase so much?
So our coal profits are kind of almost flattish every quarter. And so we're looking at the PAT for the quarter, right?
So INR 516 crores of EBITDA in the Mundra coal and shipping cluster? So I'm just looking at Q1 F '25 over there and the current quarter, we are generating of INR 437 crores implied EBITDA on Mundra, it seems versus INR 263 crores in Q1, whereas our generation was down. So I mean how -- I mean is there any one-off that we have realized in terms of...
It's not a one-off, so basically what happens is the way this plant runs and the regulatory power plant runs, you have to look at your annual utilization and your fixed cost is accordingly apportioned over 12 months. Right now, because we have received Section 11 approval to the extent there is a growth happening this quarter which will get normalized in the subsequent quarters. We can -- that means you're working separately for me.
Next question is from Rajesh Majumdar from B&K Securities.
Sir, my first question was actually on the solar cell plant. Does it make sense to export cells and use imported cells for our module preference? Because we've seen a number of companies who are exporting sales and generating much more EBITDA and EBITDA percentages than what we are generating right now? That was my first question.
So the response drive the way the regulation presently works. We have to normally use ALLM modules and DCR modules, so which means for most of the pipeline projects, we'll be using our own modules and cells. And hence, right now, we are not looking at an export. But yes, when we fully ramp up, we can assume that 25%, 30% will be exported and rest will be used internally.
And the balance will be importing for the module plan. Is that correct?
We said 25%, 30% would be exported and the rest will be used internally for our own asset under construction.
Of the sales, right, modules will still be made in house for domestic sales, right?
Both modules and sales will be made in house only.
And when you say 25% exports, you're including modules as well is it?
Yes. The export would be of modules.
Okay. And sir, my second question is on Delhi discom, again. Slide #50. If you look at it, the PAT has gone up by about INR 180 crores. So is that the right onetime impact of the truing up order on the P&L?
Yes, that's correct. That's a one-off truing up in passengers on the P&L?
And about INR 275 crores on the EBITDA and INR 180 crores on the PAT. Is that correct?
INR 238 cores and...
Yes, Rajesh, just a clarification that INR 170 crores before minority. So after namely, the impact should be only INR 85 crores.
The next question is from Swati from JM Financial.
So sir, I just wanted to understand what is the potential capacity utilization that we can reach, let's say, once our module and cell facilities have stabilized?
Around 97%, 98%.
Okay. And could you also say sir if I look at your cluster-wise breakup that you have given this within the renewable [indiscernible] those include -- does it include all of the TP solar sales as well as some of EPC? Or is it some of TP solar and some of solar EPC?
Others is basically the elimination that takes place for our own projects. So that's what this...
Right. So I just wanted to understand what is -- what is exactly coming into with others, including eliminations this INR 3,400 crores that you have of revenue in Q2 what is that exactly the INR 3,000 crores what does that attribute to? Is it the EPC? Is it the solar is it a mix of the 2?
Yes. So maybe I'll help to address in our REC business, the EPC does a lot of work for TPREL. Similarly, the cells and modules is sold internally to TPREL, right? On a consol basis all of this gets eliminated. And what you see is the pure play revenue, EBITDA impact.
Thank you very much. That was the last question. I would now like to hand the conference back to the management team for closing comments.
Thank you very much. Thank you to everyone for joining in the call. And if you still have any questions, please connect to Kasturi and Rajesh and we'll be happy to respond to them. And you all have a safe and -- safe Diwali and enjoyable Diwali. So we look forward to connect with you. Possibly in December, we'll have the site visit to the 4.3 gigawatt plant. I do look forward to meet many of you over there.
Thank you. Thank you very much.
Thank you very much. On behalf of Tata Power, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.