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Torrent Power Ltd
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Good morning, ladies and gentlemen, and welcome to the Q1 FY '23 Earnings Conference Call of Torrent Power Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Saurabh Mashruwala, Vice President, Finance. Thank you, and over to you, sir.
Yes. Thank you. Good morning to all of you. Thank you for joining earnings call of Torrent Power for Q1 FY '23. First, I will take you through the performance of the quarter, after which phone lines will be opened for Q&A session. I will explain the performance of the company at PBT level first and thereafter tax expenses will be taken separately.
Reported PBT for the quarter, before exceptional items stood at INR 671 crores as compared to INR 273 crores, the corresponding quarter last year, is an increase of INR 398 crores, about 146% on a reported basis. To understand underlying performance of our company, I will take you through the nonrecurring item for -- nonrecurring items in the current quarter, which includes 2 items for profit of INR 16 crores on account of the sale of land parcels. Second nonrecurring item is, nonrecurring item is the provision of INR 10 crores of performance bank guarantee issued as a [ GENL ] as a security for development of [indiscernible] solar power project.
Provision is considering due to elevated solar module prices in the range of $0.26 to $0.27 compared to much lower levels adjust at the time of bidding. Generally, for this not viable to -- at current level. All put together, net nonrecurring credit was INR 6 crores in Q1 of FY '23. Now moving to the nonrecurring item of Q1 of last year, which is provision of -- provision for [indiscernible] franchise distribution business of INR 21 crores, due to subdued [indiscernible] on account of second wave of COVID. So, there was only 1 nonrecurring item of -- in the comparable quarter of last year. Adjusted for about one-off items, PBT for the quarter stood at INR 665 crores compared to INR 294 crores in the comparable quarter of last year, which is higher by INR 371 crores, about -- increased by 126%.
Now, take you through the key highlights of the -- on improvement adjusted PBT by INR 371 crores for the current quarter. There are 4 key reasons for increasing this INR 371 crores PBT for the current quarter. The first reason is improvement in profitability of the gas-based power plant mainly on account of 2 factors, was gain of INR 89 crores coming from sale of LNG, which as discussed earlier in the call, which elevated LNG prices to make commercial sense to sell LNG instead of converting it into electricity. Second, gain of INR 41 crores on account of lower depreciation charge in region on account of one-time impairment charge take in Q4 of FY '22 and reduction in depreciation rate in future earnings. In total, profitability of gas-based power plant improved by INR 130 crores. So, out of INR 371 crores, first gas-based power project has contributed INR 130 crores.
Moving on to the performance of distribution business, due to disruption of industrial and commercial demand, which has impacted largely due to the COVID-19 pandemic, there was a large improvement in the overall contribution for the distribution business by INR 133 crores. There are a couple of reasons for this increasing contribution by INR 133 crore for returning, be it on account of reduction [indiscernible] losses of INR 38 crores. This is mainly franchise distribution business. Second, volume and rate gain from the franchise distribution business by [ INR 51 crores ], higher ROE as well as incentive and license distribution business by INR 33 crores. And solar, we got some solar incentive of INR 21 crores in license distribution business. All 4 put together this contributed INR 133 crores in -- from the distribution business, both franchise as well as license distribution business.
The third reason is renewable business the company saw increase in PBT mainly on account of 2 accounts. First, on account of PLS in solar and wind, which have increased in the current quarter which has given an additional profit of INR 33 crores. Second, on account of acquisition during Q4 as well as current quarter, which has given additional profit of INR 30 crores. So, all put together, renewal project has contributed about INR 63 crores additional profit as compared with -- in the current quarter as compared with comparable quarter of last year. And we also have profit of INR 16 crores in the cable business due to increase in volumes. So all 4 reasons, basically from gas-based power projects, distribution license as well as franchise, [indiscernible] and cable, all put together, has contributed INR 371 crores of additional profit during the current quarter.
Moving on to the tax number. Consolidated profit after tax reported for the quarter, INR 502 crores as compared to PAT INR 208 crores in the corresponding quarter of last year, which is higher by INR 294 crores, is about, increase of 151%. These were all about the financial performance of the company during the quarter. Now moving to understand the operational performance of company, distribution business witnessed a marked improvement in the overall demand and surpassed the pre-COVID level of Q1 FY '20. Demand during the Q1, mandatorily has increased by 22% year-on-year basis and by 5% compared to Q1 of FY '20, which is a pre-COVID level. The growth was mainly driven by the revival of demand in industrial commercial side bank. This completes the overview of the quarterly financial as well as the operating performance of the company.
I now will give a brief update about the current project, which are under pipeline. First, 115 megawatt of SECI 5 project, which has received extension now from February '22 to September '22, EPC contract has already been awarded and project is likely to be commissioned during course of FY '23. During the quarter, company has also awarded 300 megawatt wind power project under [ 16-12 ] tender with a tariff of INR 2.94. Acquisition transaction executed with Sky Power Group to acquire 50 megawatt solar power project under Sunshakti Solar Power Private Limited was consummated during Q1 of FY '23.
That's all for this quarter. Now I request coordinator to open the phone line for Q&A session. I wish everybody to stay safe and healthy. Thank you. Handing over to operator.
[Operator Instructions] The first question is from the line of Shalini Vasanta from DSP Mutual Fund.
This is Vivek Ramakrishnan. My question was on the T&D losses for the quarter.
I'm sorry to interrupt. Sir, we are not able to hear you. Could you please use your handset to ask a question?
Ma'am, I'm using the handset only, but I think there's some problem.
Yes, sir.
Is it better now?
Sir, your audio is breaking actually.
Is it better now?
Yes, please proceed.
So sir, my question was on the T&D losses for the quarter. They seemed to have edged up a little. And could you just tell us how you expect the T&D losses to move? And is there any reason why that has changed? That's my only question.
T&D losses has improved, particularly in the franchise distribution area of Agra, Bhiwandi and SMK because it was impacted last -- second quarter of last year because of the COVID second wave. So, I can give you the update about the -- how much, what performance we have demonstrated in terms of T&D losses. In terms of T&D losses of Q1, Bhiwandi is about [ 11.24% ] compared to 11.5% of the last year. Agra, we have good improvement from 17.43% last year to 14.25%, which given in Agra, we have reported. SMK it was 14.20% last year and actually was about close to 38% in the current quarter. So, there is a significant improvement in T&D losses in particularly in Agra and SMK area.
And so you expect that the numbers will further improve going forward? I mean, is there any scope for further improvement?
Yes, we expect further improvement going forward.
[Operator Instructions] The next question is from the line of Swati Jhunjhunwala from VT Capital.
So, my first question was also about the T&D losses. So we are seeing that the distribution licensee areas have increased the T&D losses whereas in the -- from [ SEZ ] areas the T&D loss has decreased. So, is there any particular reason for that?
See, distribution license area is particularly ramped up by the Surat. So, it's not strictly comparable. One has to look at the overall yearly number. So, on a quarterly basis, it is not strictly comparable. So, if you look at the Q1 of current year it is about 9.32% versus 7.1% of Q1. And Surat is about 2.99% versus 2.61% last year. So, it has -- in license distribution area has gone up. But year as a whole, if you look at last year, it was -- Ahmedabad was 4.17%. So going forward, it may come down because in the hot summer generally distribution in Ahmedabad and Surat area is bit higher than the overall average of the yearly average.
So, second question is in Dholera, when do we expect the operations to start?
We expect operations to start during the current year, that is what our expectation is. There are -- we are awaiting the demand to come. So, we expect the operations to start during the course of current year, particularly...
And third is on the Dadra and Nagar Haveli and Daman and Diu, so in this quarter, we had a T&D losses of 2.23%. I wanted to understand how low can we get? Like what is our target T&D losses for this area?
See, if you look at the Dadra, Nagar Haveli and Daman and Diu, most of the areas are commercial, almost more than 90 -- about 90% [indiscernible]. So, it's comparable with our Dahej area where the distribution loss it is about 0.5% kind of a thing. So, we are not saying absolutely it will go to that level, but there is a further scope of improvement in the Dadra and Nagar Haveli and Daman and Diu. Industrial base, it's an industrial, not a very small percentage of estimated customer.
And one last question. Could you give me the breakup of revenue between the distribution license areas and distribution franchise areas?
Not -- we don't have the [ reference ] at this moment. We can give offline.
The next question is from the line of Rahul Modi from ICICI Securities Limited.
Great set of numbers yet again. Sir, just a couple of questions. If you can just throw some light on the gas sourcing as to how much do we have in already booked and post the recent LNG sale that we are doing. And just to make us understand in terms of the spreads that we've earned in the recent LNG sales on an average for the quarter. So yes, that goes to beginning.
The LNG sales is basically merchant sales, me to recollect, we have always said that when merchant gas available, it is always, we have a gas available, it is better to -- we see the opportunity available in the market. Currently, we saw the opportunity of selling the gas from converting into electricity. So, that is why we sold gas and net profit from the sale of LNG. As far as tie up is concerned, as reported last quarter, we have about 50% tie up of gas for our for our beneficiary from FY '23 -- calendar '23 to '26. There is no further -- we have contracted one cargo from the merchant power for the merchant gas. Otherwise, we, for the current year, [indiscernible] gas.
Just to ask on this, we read in some newspaper articles stated that domestic gas supplies to power sector will be curtailed because of the high LNG prices globally. So, any view on that if you've heard anything on that front? It's just news?
We are not doing -- we, only domestic gas available is the Reliance Gas, KG-D6.
I think, Rahul, Rishi here, that use is basically for the subsidized gas which has been given to power companies. In any way, our share from that subsidized gas is extremely low. So, it will not make any difference.
Just some more clarity on -- sir, if you can just elaborate on the recent couple of acquisitions that we've done in the renewables space, there have been some very small ones also. So, some update on that and your thought process on how do we see on an annual basis, additions that we are targeting over the next 4 to 5 years in renewables, both organic and inorganic?
In recent part, we did 4 acquisitions, particularly renewables. First is the 156 megawatt with CESC, which is wind asset and 50 megawatt with the Lightsource bp, 25 megawatt with Visual. And in the current quarter, 50 megawatt with the Sunshakti with Sky Power. So, 4 acquisition we did in last -- last quarter as well as current quarter. So, as far as future plan is concerned, we evaluate -- it depend on the opportunities available and at what value we have to, what reasonable value is available. So, it all depends on the opportunity available. So, we don't have any target in mind for -- as for making the acquisitions.
And sir, sir, the -- we had bid for a project at INR 1.99. So, are we moving ahead with that? Or this INR 10 crore is for that project that we provided for?
INR 10 crores is for that project only.
So, we are not going ahead with that?
As of now, we -- that is what the plan is.
The next question is from the line of Aniket Mittal from SBI Mutual Fund.
A few questions from my side. Sir, firstly, on the distribution franchise part, just to understand, if you could highlight specifically for Agra and Bhiwandi, how is the demand going? Have we crossed pre-COVID levels in these 2 circles? And from that perspective, how do you look at the AT&C losses for the full year for these 2 franchises?
Demand for franchise distribution area has crossed the pre-COVID level. For example, I can give the, if you look at the demand of Q1. So, it is up by about 24% as compared to the comparable quarter of last year. And if you look at the pre-COVID demand of FY '20, is up by 7%. So already, we have surpassed the pre-COVID level demand as far as this center areas are concerned.
And in terms of the AT&C loss subject to. If I remember, pre-COVID for Agra and Bhiwandi, we were closer to 12%. How do you look at for FY '23 then?
See, in terms of AT&C loss level, I can give the update on the collection efficiency. For Q1, it is almost, Q1 is almost near 100%. Agra is about 94%, 95%. SMK is also about 97%, 98%.
So Aniket, with respect to FY '23, we don't give guidance per se for the future. But on the directional side, AT&C loss, we will keep on reducing as we have said earlier also that Ahmedabad and Surat is working at around 5% to 6% of AT&C losses. And our aim is to achieve those levels in all these areas in franchise distribution also. So, overall, on a year-on-year basis, there would be an improvement. Because of this COVID, that process got delayed. But now I think we are on track to achieve reduction in AT&C losses.
Second question was on the renewables front. So, at a Group level, if I look at, we now have about 1,070 megawatt of renewable assets. Quite a few of this has been acquisition-led. So, if I look at this portfolio, on an annual basis, what would be the steady state revenue and EBITDA for these assets?
On annual basis, we don't have the number at this moment, but we can give -- last year number is, but it doesn't give the sense of, [ last year ] EBITDA for renewable was about -- we have reported, so definitely this year it would be much higher than INR 662 crores EBITDA.
I was just trying to look at...
Acquisitions had a -- PLS is better in Q1. So...
The other question was just to understand on Dadra and Nagar Haveli, what's been the profit contribution for the quarter?
We have started in course of April. So, it will take some time to stabilize and it will take some time to stabilize. So yes, we have [ started ] in the course of Q1. But that is not significant, I would say, as compared with the overall size of the business. So, we are looking -- going forward, we will improve the efficacy, we will bring down the [indiscernible] past also. So, it's too early to comment on Dadra and Nagar Haveli considering the 1 year -- 1 quarter performance.
And just last question. Just on the fuel sourcing part. So, there are 2 parts to it. One is if you could highlight what is the amount of cash that we are getting now domestically and at what price are we getting that? And secondly, for the 1 cargo that you have contracted, what is the price for that contract?
Gas, as you know, we are getting gas from 2 sources. First is we are getting it from -- gas from IOC and the Reliance KG-D6. These are excellent proceeds, which is about meeting about 25% of requirement. Then the cargo, which we have contracted is for our merchant deployment. We have contract about $21 we have contracted.
As far as pricing is concerned, both of them are linked to rated brand. So, there is no fixed price for this domestic gas, which are buying from IOC and Reliance.
But we're getting the 25% requirement from IOC and centralized.
Yes, Yes, we are getting.
The next question is from the line of Mohit Kumar from DAM Capital.
I could not hear the entire call clear. Maybe I'm missing something. But what is one-off in the quarter in terms of gas sales for the quarter?
I'm sorry to interrupt Mr. Kumar. We are unable to hear you properly. Your voice is breaking. I mean, the words are not proper.
Yes, actually, am I audible now?
Yes, Mohit, we heard you. So basically, it's -- I mean profit from sale of gas during the quarter was around INR 89 crores.
And sir, given that the fuel and power costs are very high in the quarter, what is the receivables sitting in our books right now?
So, I think on a quarter-on-quarter, it would be difficult to -- or it would not be right to look at receivables on a quarter-on-quarter basis. I mean, for the full year, we expect there would be some increase in the regulatory asset for like the distribution business. But on a quarter-on-quarter basis, we may not look at regulatory assets or other receivables because typically, all those receivables would get liquidated in the next 2 to 3 quarters.
Given the high price, you don't think you can pass it immediately, you'll pass it over the next 12 to 18 months. Is that assumption correct?
So, time line is difficult to ascertain, but it would not happen immediately.
Over a period of time.
Lastly, sir, on the renewables piece. Can you just confirm the portfolio number? Is 1.8 gigawatt? Out of 1.8 gigawatt, 1 gigawatt is under operation and 0.8 gigawatt is under development. Is that right sir, the number?
Yes. Roughly, yes.
Sir, on the 300 megawatt of wind power, which you announced on the [indiscernible] that is going to -- is going to cost INR 2,600 crores, right? That number seems to be pretty high, more than INR 8 crore per megawatt. What is the [ PLI ] you are getting from this wind power plant?
40% PLI, we are assuming.
40%.
The next question is from the line of Harsh Dole from IIFL Securities Limited.
I had 3 questions. One is, if you were to look at the treasury income, we understand that there is a one-off component. But even adjusted for that one-off component, the treasury income seems to be fairly high. If you could just help us understand what is the reason for that? That's #1. #2, in terms of CapEx, with respect to our annualized target, where are we? Or considering the revival in power demand, any thoughts of revising it upwards or downwards?
So, as far as treasury income is concerned, there was a one-off of around INR 16 crores, which was -- which is left in other income. Apart from that, if you look at the power purchase cost, major portion of the power purchase in this quarter was on account or taken from merchant power or on a bilateral basis. Now typically, in those contracts, if you pay within 7 days, you have -- you can avail discounts on the power purchase cost, which is now getting reflected in the other income. And that's why that number is elevated compared to the corresponding quarter last year.
We have availed the discount and we got discount on power purchase.
So, does this mean that [Technical difficulty] purchase cost and our PBT is unaffected?
It will be passed on to. It will not have any P&L impact, it will be passed on.
So, instead of showing it in the power purchase cost, it is appearing in the treasury income. That's how it is?
Yes. Yes.
So, that's in [indiscernible].
And on the second part, CapEx, any upward revision...
No. I think INR 1,500 crores of expectations, which we have given, I think that looks feasible and that is appropriate as far as current scenario is concerned.
And if I can just squeeze in one last question.
Yes, sure.
So, there was news that the amendment to the Electricity Act that's actually been sent to the Standing Committee. But theoretically, if the bill were to be accepted in totality, which, of course, looks less probably event, but hypothetical, what kind of risk as well as opportunities you envisage due to passage of the bill?
So I think as far as bill is concerned, I think we look at it as on a positive side, wherein we'll get opportunities to go into new distribution areas. So, I think we look at it as a opportunity rather than a risk for us.
The next question is from the line of Jiten Rushi from Axis Capital.
Sir, can you give us the breakup of EBITDA?
EBITDA?
Yes, EBITDA break up. In thermal, renewable, licensees and franchisees.
So, EBITDA, gas-based project for the current quarter is about INR 238 crores.
Which project, sir?
Sorry, INR 238 crores. Gas-based project INR 238 crores versus INR 129 crores last year. Then renewable project is INR 260 crores versus INR 175 crores last year. License distribution about INR 421 crores versus INR 322 crores last year. Franchise is INR 250 crores versus INR 168 crores last year. And total EBITDA is INR 1,169 crores versus INR 764 crores last year.
This is before one-off, right, this INR 1,169 crores?
No, this is after one-off. Before one-off, it is INR 1,151 crores. There are very small one-offs in the current quarter.
So, all the segment-wise EBITDA provided are before one-off and the total number is after one-off. So, the balance, you can allocate as one-off and other items.
And sir, on the wind PLI, you said you're expecting for this 300 megawatt, 40% PLI you expected or 30%. Can you please clarify?
40%. 4-0.
4-0. And sir, on the gas tie up, just harping on it. So, we have gas tie up for this year at 25%. And from CY '23 to CY '26, we have 50%, because last time we said up to CY '27. So, is there any change in that?
CY '26, it is -- up to '23 to '26, we have 50% tie up.
So 25% from domestic and 25% imported, right, sir?
Right.
And sir, just on the CapEx. So, any -- what is the CapEx incurred in Q1? Can you give us a break up between distribution licensee and distribution franchisee?
Yes. We can give a break up. Distribution license business is about INR 438 crores.
INR 438 crores.
Franchise is INR 55 crores. So, about INR 500 crores CapEx which we have incurred in the license and franchise put together, which was about INR 150 crores last quarter -- compared with the quarter of last year. So, we have incurred significant amount of CapEx in Q1 of FY -- current year.
And we will be doing INR 1,500 crore for the full year combined?
Yes. That is what the target is.
The next question is from the line of Apoorva Bahadur from Investec.
Sir, wanted your views on the Electricity Amendment Act given that now instead of de-licensing, there will be multiple licensees. So, how do you see this opportunity, the size over here will be more like a franchise business?
So, as explained by Rishi, it is an opportunity, we see as an opportunity for us because we can go and get more distribution. So, we are seeing as an opportunity rather than any stakes over existing distribution area.
Sir, secondly, also wanted to understand on this billing for UNOSUGEN. I understand that the regulator has allowed cost pass-through in the tariff order. Sir, but will it -- so is it like a 2-part billing in UNOSUGEN wherein we are billing for the entire fixed cost and only the variable cost for generation? Or is it that the overall entire annual amount which was allowed by the regulator is being billed?
It's the same [indiscernible] type, all fixed costs will be passed on. Will be billed into the entity. And it will be recoverable from the consumer.
2-part then, it's fine, sir. Sir, also recently in MOP floated a proposal on this high-cost dam market, which is above the ceiling of INR 12. So, do we intend to participate in it, given our gas-based power bill will cost more than INR 12?
No, see it's basically at what cost you are generating the electricity, based on that we'll decide whether it's viable to participate in the...
So, Apoorva, it is basically a trade-off between whether you're making more profits out of sale of gas or you're making more profit out of sale of electricity. So, it would be more of a dynamic play on a period-to-period basis. And we have to look at it at that point in time, what makes more sense.
Sir, lastly, on -- I think, again, on the gas availability front, if you could just enlighten me over here, the gas which we are selling, is it the merchant cargo? Or are we selling our share of this IOCL and RIL gas? And also if we are selling the domestic gas, then how are we declaring the availability for SUGEN plant?
As far as availability is concerned it is available. So, availability is 100% available, SUGEN as well as UNOSUGEN, both the plant. In terms of source of gas, we will not be able to comment on this at this moment.
The next question is from the line of Aniket Mittal from SBI Mutual Fund.
Just a couple of questions. Firstly, in the 2 renewable projects that you're undertaking, what is the pending CapEx for that? The 300 megawatt PLD and the 115 megawatt SECI project?
115 megawatt SECI project...
So, 115 megawatt SECI project is around INR 800 crores of CapEx and PPLD 300 megawatt is around INR 1,250 crores to INR 1,300 crores.
How much of that CapEx is spending?
PPLD, most of the work is spending. 115 megawatts, I think, around 30% of the CapEx is done and another is in pipeline. But the EPC contract has been awarded. So, as and when the EPC contract does the work, we will have to make the payment.
So, about INR 500 crores CapEx, which we have incurred in 115 megawatt crore out of INR 800 crores.
The other question was I think in your opening remarks, for the distribution business, you mentioned some solar incentive gain of around INR 21 crores. Could you help me with that? I mean, what is it that's leading to this gain?
See, we -- there is a solar rooftop scheme available in our license distribution area. So, we -- under the solar rooftop scheme, government has 1 scheme, where if you are facilitating solar rooftop more than 10, incremental by -- if you facilitate solar rooftop in your license area, then there is incentive available and its capacity increase in addition in every particular year, it's more than 10%, then government give incentive to you. So, we've got some incentive in some of our license distribution area. By which we have installed more than 10% capacity.
What's the capacity that we've installed under the scheme.
We'll give the number offline.
And just one last question. Sequentially, I think we've seen a decent increase in the interest expense for the company. So, if you could just highlight on that in terms of the overall debt and the finance cost, so what is leading to that increase? And how do you see this come across over the next 1 year?
Overall base number, average cost is about 7.25% of the current quarter and base will be about INR 11,000 crores.
The next question is from the line of Rahul Modi from ICICI Securities Limited.
Sir, what is the current asset...
Sorry?
Sir, current outstanding regulatory assets?
It was on year-end, it was about INR 1,900 crores as on March '22, both disputed as well undisputed. Undisputed was about INR 1,300 crores and disputed is about INR 600 crores.
Ladies and gentlemen, we have lost the line of Mr. Modi. We will move on to the next question, which is from the line of Mohit Kumar from DAM Capital.
My question is on the CapEx you are likely to incur in the Dadra and Nagar Haveli over next 3 to 4 years. Is this something you have a better idea right now?
We have stated earlier that we have plan to spend about INR 1,000 crores CapEx in the next 5 years in Dadra, Nagar Haveli, Daman and Diu area.
Sir, secondly, on this, given the power price still running very high, how we are tied up for our power purchase for the next 8 months? Are resources on medium term or exchanges?
See we have some contracts, bilateral contracts available for our existing license area. So, it's a mix of bilateral contract, our own generation and something from the exchange also.
The next question is from the line of Rahul Modi from ICICI Securities Limited.
Sir, sorry, I dropped out because of network issues. So, just a question following up on that. So, what was the regulatory asset you were mentioning? It was INR 1,900 crores, is it?
Yes.
And anything built up during this quarter, Q1?
So Rahul, as we discussed, there would be some regulatory assets which got built up during the Q1 because of elevated power purchase cost. Over a period of time, so let's say this year also, there are expectations, some part of it will get liquidated. But for the full year, we expect some additional built up of regulatory assets.
Any indicative number just to understand?
Difficult to suggest at this point in time, it is difficult how much volumes and with what cost we will be able to procure going forward, which will impact the regulatory asset number.
Sir, what is the current variable cost we are generating for our gas plants on a blended basis?
We will give the number offline. We don't have the number readily available with us right now.
The next question is from the line of Devam Modi from ARDEKO.
Sir, first, this Dadra, Nagar Haveli, if you can just walk through what is the exact amount that we have paid to them as of now and if any further amount needs to be paid as a license fee or something like that? And what will be the sort of, let's say, economics of the transaction as per our understanding in terms of IRRs and [ so on ]?
INR 565 crores was invested for 49% stake -- 51% stake. So, that is what we made the investment. And so basically, we look at it as perpetual opportunity rather than looking at some higher kind of a thing. So, our business available on a perpetual basis. So that is what -- and if you -- during the course of next couple of years, it will give us many opportunities in the nearby areas also. So, we see as a perpetual opportunity rather than looking at one particular idea or king of a thing.
So it's a onetime license fee of INR 565 crores is what you mentioned.
Yes. 51% stake.
And so basically, overall debt that has gone up by, let's say, quarter-on-quarter, we see debt has gone up by almost INR 2,500 crores that would majorly be for the renewable acquisitions?
Renewable acquisition plus our some built up of regulatory assets also. So, it's a mix basically plus acquisition of Dadra, Nagar Haveli, also.
What would be the cash balance at our end at the end of June?
It is about...
Around INR 1,500 crores.
I actually missed out on 2 numbers, if you can just highlight the number of EBITDA for renewables and EBITDA for Dadra and Nagar Haveli?
So, we are not sharing EBITDA numbers separately for Dadra and Nagar Haveli. For renewables, [indiscernible] Q1.
Q1 was about INR 260 crores versus INR 175 crores last year.
And for license distribution?
License distribution, it was INR 421 crores versus INR 322 crores last year.
And then major difference one can assume is basically Dadra and Nagar Haveli I mean, in this case, Shil, Mumbra was already there last year, right?
No, no. So -- so as I think Saurabh explained in the opening remarks, there were a lot of other sectors in terms of AT&C, I mean in license distribution, typically, there was incentives, there was improvement on account of higher ROE. So, all those put together this delta.
The next question is from the line of Rani Vijayakumar from Spark Capital.
So, on the gas availability and sales of gas, as I understand, when we have profit opportunity to make by selling LNG, we buy power in the short-term market and supply to our distribution businesses and sell the LNG, am I right?
Yes. But it's basically merchant cargo we are selling. So whatever generation is available for the beneficiary, SUGEN is supplying to our distribution arm.
And you also mentioned that there is a price point at which it becomes better to sell LNG than generate. So, what is that price point in dollars per MMBtu?
It's not fixed price point. It is a dynamic market. So, on a day-to-day, we will decide whether to generate electricity or to sell the gas. So, it also depends on the merchant prices available for electricity and opportunity available at given point of time. We have to look at.
And I missed out on the cargo that you had contracted on merchant basis, what is the price at which you have contracted?
$21.
And obviously, you would be making more than that by selling in the market for LNG.
Yes.
My second question is on the Dadra, Nagar Haveli. What is the gross block and debt at these assets? Has it been consolidated in this particular quarter, the number?
Yes. It is consolidated.
There is no debt, actual debt in the business as of now. And gross block would be around INR 250 crores to INR 300 crores, exit number we can give it to you offline.
I didn't get your debt part. Can you repeat that?
There is no debt as of now.
There is no debt. Okay.
As there are no further questions, I now hand the conference over to Mr. Saurabh Mashruwala for closing comments. Ladies and gentlemen, we have lost the line of management. Please stay connected while I reconnect them. Ladies and gentlemen, the line has been connected for the management.
Thank you.
Closing comments from your end.
Yes. Thank you very much for joining Torrent Power's earnings call. We wish everybody to remain safe and healthy. Thank you so much.
Thank you. On behalf of Torrent Power Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.