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Ladies and gentlemen, good day and welcome to the Inox Wind Q4 FY '19 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to [Mr. Ojas Vikas Shah] from Axis Capital. Thank you, and over to you, sir.
Thank you, Aman. I would like to welcome everyone on this call. We have with us Mr. Devansh Jain, Executive Director; Mr. Jitendra Mohananey, Group Financial Controller; and Mr. Narayan Lodha, Chief Financial Officer. I would request Mr. Jitendra to take us through the key highlights of the results, post which we will open the floor for Q&A. Over to you, Mr. Jitendra.
Thanks, Ojasvi. Good afternoon. I welcome all the participants of this earnings call. The Board of Directors of Inox Wind Limited has approved the quarterly and annual results of FY 2019 meeting, which was mailed on 19th May -- 18th May 2019. I trust you all have had an opportunity to go through the results. I request our Executive Director, Mr. Devansh Jain, to give you an overall perspective of the year gone by.
Thanks, Jitendra. So I think how we're going to take [you through some colors where] I'm going to give an overall perspective of the year gone by, and then Jitendra is going to take you through the details of the quarter gone by as well as some more nitty-gritty details of the year gone by. And then we'll open up the floor to questions. In terms of the year gone by and talking of the financial numbers, we've seen a significant year-on-year turnaround in top line and EBITDA margins on the back of our SECI execution, which was despite over 15 months of delay in the central grid evacuation readiness. Just for a little bit information, the central grid was finally commissioned on the 14th of April 2019 by the central grid authorities and that's why we can now progress going forward. In terms of revenue for the full financial year, our revenues were INR 1,437 crores, which was up 200% against revenues of INR 480 crores in FY '18. Our EBITDA profit for the year was INR 156 crores against an EBITDA loss of INR 81 crores in the corresponding period of the previous financial year. Our cash profit was INR 27 crores in FY '19 against a cash loss of INR 133 crores in FY '18. In terms of operations, naturally, post a virtual shutdown in FY '18, which was impacted by the transition from the feed-in-tariff regime to the auction regime, in FY '19, supplies have begun towards SECI-1. Large scale supplies have been muted during this financial year due to the delay in the central grid infra readiness. So finally, after 15 months, with the central grid now ready, Inox is well poised to commission our SECI-1 projects over the next couple of weeks at Dayapar in Gujarat. For everybody's information, our common infra at Dayapar, Gujarat is large enough to enable us to commission over 600 to 700 megawatts of capacity, which can now be implemented on a plug-and-play basis as we move forward. Another interesting point for our operations as we move forward is that a significant part of our operating fleet is beyond the warranty and free O&M period. So we believe our O&M revenues will pick up significantly in the new financial year. In terms of technology, we did announce that in the last quarter, we entered into a technology agreement to launch the 3.3-megawatt wind turbine. This turbine is a globally operating and proven platform which will significantly improve energy yields and further reduce the levelized cost of electricity. With this, Inox Wind will have the technology platform in place for the future, well ahead of competition. Over the year, building on our strong relationship with Adani Green, we received an LOI for equipment supply for 501.6 megawatts of our 3.3-megawatt wind turbines. We have also signed an agreement with a leading MNC IPP, who is our existing customer, for an initial supply of 23.1 megawatts on the 3.3-megawatt platform. And we expect to keep this momentum going forward as we launch the 3.3 turbine in the Indian market. Recently, we have also won a 40-megawatt auction under the Gujarat state auction at a tariff of INR 2.95. So as you can see, over the past 3 or 4 auctions, status have been moving up and stabilizing in the market. With this, our cumulative order book stands at approximately 1,250 megawatts, having a value of upwards of INR 7,000 crores. So I think these are the annual highlights for our operations and finance for the year gone by. I will now request Jitendra to take you through the details of the quarter gone by as well as some more details, nitty-gritty of the full financial year.
Thanks, sir. In terms of financial results for the year, we ended FY '19 with consolidated revenue of INR 1,437 crores as compared to INR 480 crores in the previous year FY '18. We have an EBITDA profit of INR 156 crores as compared to EBITDA loss of INR 81 crores, cash profit of INR 27 crores as against cash loss of INR 113 crores -- INR 133 crores and have a PAT loss of INR 39 crores as compared to PAT loss of INR 185 crores in the previous financial year '18. FY '19 results reflect the beginning of sale under the auction regime post FY '18 wherein there was a virtual shutdown of operations due to transition from FIT regime to auction regime. In terms of the financial results for the quarter, we ended the quarter with consolidated revenue of INR 180 crores as compared to INR 203 crores in the corresponding quarter of the previous year FY '18. We have an EBITDA loss of INR 28 crores as compared to EBITDA loss of INR 30 crores, cash loss of INR 36 crores as against cash loss of INR 43 crores and have a PAT loss of INR 53 crores as compared to PAT loss of INR 55 crores in the corresponding quarter of the previous year. Supplies in Q4 FY '19 were cut back since the central grid was further delayed beyond Q4, which was finally made ready on 14th April 2019. In terms of sales, to a large extent the sales and commissioning during the quarter were impacted due to central grid connectivity delay, which has led to detriment of commissioning revenue and supply revenue. With the readiness of central grid finally in April 2019 after a delay of over 15 months, Inox Wind is poised to commission SECI-1 project in the next couple of weeks in Dayapar, Gujarat. Our common infra at Dayapar, Gujarat will enable us to commission over 600 megawatts on the same infrastructure. Accordingly, execution of orders beyond SECI-1 will virtually be plug and play. On the balance sheet front, I would like bring to your notice Slides 11 and 12 of the presentation which gives details of our focus on balance sheet improvement during the quarter and past couple of quarters before that. Consolidated inventory levels increased mainly on account of ramp-up of SECI project execution since the current inventory includes project work in progress of Dayapar, Gujarat site which will be commissioned over coming quarters given the central grid is now ready. Going ahead, we expect inventory levels to come down as the execution picks up pace in the coming quarters. Inventories will also be consumed towards SECI-2 now that common infra in place. There's a reduction in receivables by INR 185 crores in the quarter due to continued collection from past receivables. The closing receivables include significant part of sales made during the current financial year, wherein collections were delayed due to substantial delay in readiness of central grid over 15 months. The grid, as was intimated, was finally made ready on 14th April 2019. Commissioning activities for SECI-1 projects are in full swing, and we expect increased realization from receivables post commissioning. At the end of quarter 4 FY '19 in terms of working capital, inventories stood at INR 944 crores, net receivable at INR 1,261 crores, payable at INR 889 crores and others are about INR 103 crores. This translates into net working capital of INR 1,213 crores. Despite the huge delay in the central grid readiness, working capital levels have been maintained at the same level. With the grid now finally in place, further efficiency will kick in. On the debt to equity front, we ended the quarter at a net debt of -- net debt-to-equity ratio of 0.47x. The shareholding structure is 75% belonging to the promoter and promoter group, FII owns 7%, DIIs own 6% and public is 12%. So that's -- so this is a brief snapshot of our operations. I would like to spend some more time in talking to you about competitive intensity, technology, order book, industry and how we see going forward. In terms of competition in the wind sector, over the past 2 years, many peers have either closed or virtually closed operations and some are facing severe financial crisis. Inox Wind is probably the only successful Indian company to have survived during the huge downturn and turbulent period faced by the wind sector. Due to the lower intensity of competition, going forward we expect to get back to normalized profit levels. In terms of technology, as we told you that we have achieved significant milestones by entering into technology agreement to launch next-generation 3.3-megawatt wind turbine with 146 rotor diameter. This will probably be the largest rotor diameter available in the country and will set new benchmarks in India and -- in the Indian wind industry. The 3.3-megawatt wind turbine platform will further reduce levelized cost of electricity, thereby supporting the government's vision of larger footprint for green energy. So this has led to the fact that despite the fall in tariff under the auction regime, Inox Wind will continue to maintain healthy margins. We have strong order book of 1,250.7 megawatts having value of over INR 7,000 crores to be executed in a period of next 18 months or so. The other significant detail that is happening is that O&M annuity business, a large part of the fleet has gone off their free/warranty period and hence O&M revenue in terms of cash flows will start flowing in. O&M revenue will further get stronger in coming years as the fleet size increases on the back of a strong auction order inflow. These revenues are, as you know, noncyclical in nature. They have steady cash flow generation and have significant higher margins than average company margins and hence would help in our margin profile as well. In terms of project site, we continue to be amongst the largest project site holders in the state of Gujarat, Rajasthan and MP. We have sufficient project site inventory as of 31st March 2019 for installation of more than 5,000 megawatts. In terms of manufacturing capacity, our blade manufacturing capacity stands at 1,600 megawatts and with minor CapEx, we can debottleneck our nacelle and hub capacity from current 1,100 megawatts to match grid capacity. The sector is moving ahead towards a regime of sustainable volume and growth past witness -- post witnessing a painful transition over the past few quarters. Inox Wind is poised to commission SECI-1 projects in Dayapar, Gujarat. Hence, we are fully geared to manufacture as per market demand and auction regime. So that is a broad overview of our operations and financial performance, how we see the sector going forward. I have along with me Mr. Devansh Jain, who has already given the highlights of the financial year -- FY '19; and CFO, Mr. Narayan Lodha, to take questions now. Thank you very much.
[Operator Instructions] The first question is from the line of Puneet Gulati from HSBC. As there's no response from the line of Mr. Gulati, we will move to the next question that is from the line of Mohit Kumar from IDFC Securities.
Sir, FY '19 ended pretty bad for us in the sense of [all the] turnaround, especially in Q4 expecting slightly better execution. Just trying to figure out whether SECI-1 -- have you booked the entire SECI-1 in Q -- in the entire fourth quarter given our top line is for 300 crores? So it seems like SECI-1 entirely booked or some part of SECI-1 is still remaining? And how do you see the SECI-2 moving forward? I'm trying to figure out how the FY '20 will look like.
Okay, Mohit. So obviously, we would've expected Q4 to have been stronger as well. But unfortunately, the grid has taken over 15 months to commission. It's being promised to us initially -- just to recap, it was supposed to be ready in January 2018. Then we were given a time line of June 2018, then August, then November, then December, then finally told that it will be done in Jan 2019. Then again it was promised for February. And effectively, finally got readied only on the 14th of April. So naturally speaking, there's no point supplying more and more and more in the market without people paying you, without having any clarity as to when the grid gets ready. Having said that, finally, the grid has been made ready. So naturally, now we are executing much more. So to a great extent, if you look at our inventory, a lot of that inventory is including all the project execution which we've done on the ground, which will get recognized as revenue, commissioning revenue once we commission these turbines. Naturally, we expect commissioning of SECI-1 to happen over the next few weeks. So that will answer your question as to revenue bookings. Now revenue obviously of SECI-1 supplies has been booked, but commissioning revenue to that extent is not booked because commissioning revenue is recognized only once commissioning takes place. That's point number one. With respect to how we see SECI-2 moving forward, as soon as we ramp up now SECI-1 over the next 2 -- few weeks, we will be starting supplies and execution of SECI-2 [to one extent] already because our common infra is capable of taking more than 600 megawatts of capacity. So we really don't need to build any more common infra on site. And in fact, a lot of the [33 cable lines, pass-throughs] and other stuff which we'll build on site is capable of taking SECI-2 and wind projects beyond SECI-2. So that's how we see SECI-2 moving forward.
And sir, my second question pertains to this 502-megawatt LOI from Adani. So when do you expect it to be brought into a proper agreement? And I believe that this is SECI-3 and SECI-4, so this entire thing should ideally get built, or let's say, get booked in our revenues in FY '20. Is that right?
Well, I don't know whether it's SECI-3 or SECI-4 because that's Adani's prerogative, to be honest. I think they won a whole host of auctions ranging from 1 to 7 to NTPC to Gujarat to MSEDCL. So to be honest, I'm not in a position to answer whether this is SECI-3 and 4. But yes, this will get converted into an agreement actually as we put up the 3-megawatt -- the first 3-megawatt product on the ground, and I think that's expected over the next few months. So I think we are moving -- for competitive reasons naturally, I'm not going to spell out exact time lines and what our action plans are. But I think broadly speaking, we're well on track with respect to what we wanted to achieve on the ground with respect to the 3-megawatt product. Naturally speaking, we could have fast-tracked this much more and have done a lot of things 6 months or a year earlier. But please do keep in mind, without auction guidelines being announced in the Indian market, without regulatory clarity and obviously without the grid infrastructure being ready. Even if we had this product available a year ago, nothing much would have been achieved. So I don't want to run ahead of myself, but I think we are being very cautious in terms of how we are moving forward. We're finally reaching a point where all our inventories are going to get consumed. Do not forget that for the past 2 years, we have been saddled with huge inventory and no, haven't looked to utilize that because there was no market. But I think things are moving fine, and I think over the next few months, we should have this 3 megawatt converted into a formal agreement with supplies happening. Adani is being very supportive, and they are backing us and being a very, very integral part of this 3-megawatt product.
Sir, one last question. Out of 12.8 gigawatts of auctions that happened, what are you seeing as to how much order is still to be placed in the sales closed?
Well, to -- so first and foremost, what we understand is, well, about 1 gigawatt out of that 12.8 is all that has been commissioned, barring some 300, 400 megawatts of stranded assets. So if you look at all the commissioning in the past -- previous financial year FY '19, we did for lower -- well, in the current financial year, we did lower. We did about 1,400 to 1,500 megawatts of commission as an industry. About 800-odd megawatts are under relief auction. Another 600-odd megawatts was from state auctions at Gujarat and Tamil Nadu [were treated as] stranded assets and partly group captive and third party sale. So we still have almost 11.5 to 12 gigawatts of auction volume, which still needs to be implemented on the ground, number one.
No, no, sir, my question was that how much of this order has already now been placed out of 12.8 gigawatt?
I'm coming to that. I think it's very hard to answer how much of it has been placed because a lot of it have also been placed, not a lot. I would say about 1 gigawatt to 2 was also placed on some parties which have now been -- have gone insolvent or declared bankrupt. So to that extent, while that paper -- while that exists on paper, all those guys have real -- I mean, those IPPs are real, those orders actually don't exist and those IPPs are now scouting around for supply, number one. Number two, there was also another basket of volume, another 1 gigawatt to 2, which has been placed on 1 or 2 manufacturers who are facing very, very severe financial crisis. And what we understand from the market, these are also being opened up for supply. Given the fact that in any case, the grid for SECI-3 and 4 is also delayed, there is a hell of a lot of time available for people to supply this. All in all, as I may put it, I think out of the 12-odd gigawatts yet to go, I think at least, if not more, 5 to 7 gigawatt will be available for people to effectively step in and supply.
[Operator Instructions] The next question is from the line Ketan Gandhi from Gandhi Securities.
Sir, any clarity on the penalty which may or may not be faced by us or the IPP for delayed execution of SECI-1, SECI-2?
Well, I think with respect to SECI-1, SECI-1 and 2 were won by us, so it's on us. But in terms of penalty, what we've been made to understand is given the fact that the grid has only been ready around 14th April, we have a certain grace period within which we need to commission this. And as we do achieve that, there will be no penalty. If at all there is a penalty, it may be for 10 to 15 days, which will work out to 1 crore or 2 crores or so.
And SECI-2?
With respect to SECI-2, that is -- there is still some time for that. We are still assessing what that would be. But as we understand, there have been various representations made by almost all the winners of SECI-2 and 3 because of delays in evacuation as well as land allotment. So while -- we have to get some more clarity on that. But as things stand, we believe there will be an extension available for that as well. We've already -- they already gave an extension across players of SECI-3 and 4 because no one is really ready for SECI-3 and 4. Virtually, nobody is really ready for SECI-3 and 4 yet.
No, sir, that's -- okay. But SECI-2 is because -- which is the deadline is already over. So…
No, the deadline for SECI-2 is in May. But within that, we have a certain period where certain things get delayed you get an extension. So I think what we understand everyone has made a request for extension and I think as we move towards commissioning, I think we will be granted extension for x amount of period. It's hard to quantify what that period could be, but if [it's all added] we could face a penalty of a few crore rupees, yes.
All right. And, sir, what about the -- I mean we have a signed agreement with MNC IPP. Can you throw some more light on that? I mean it's a long-term relationship or a one-off?
Well, it's -- as you mentioned, it's an existing customer. And obviously, we've signed an initial agreement for 23 megawatts. Naturally speaking, I think, as we also put out in our presentation, the competitive intensity in the market is declining. It's probably down to 3 or 4 players now in the Indian market. A lot of new players came in and folded up. Existing players have folded up. So, clearly, everybody wants a long-term, strong, stable supplier. And as we did mention, we are probably the only successful Indian company to have survived this hugely turbulent and painful period. I mean being a defaulter is not called survival because you've got a lot of other companies who have defaulted and have continued to default. I suppose MNC IPP and various other avenues exist for that to get sorted out. But within this, I think we are well-placed now to rebuild a strong position in the market.
Any ballpark figure that we may achieve this financial year of supply under commissioning in terms of number of megawatts?
Well, I wouldn't want to give any forward-looking statements, but I think given the fact that the common insight now in place for approximately 600-plus megawatts, I think our commissioning numbers would play out within that, given the fact that for SECI-3 and 4 grids still need to be made ready, so that's going to be a commissioning number. And, obviously supplies, to some extent, would be guided by that minus whatever's already being supplied.
If I may ask, sir, on SECI-3 and 4, is that Gujarat only? Or Tamil Nadu?
For us, SECI-3 and 4 will be Gujarat.
For the same location only?
Yes.
The next question is from the line of Chetan Dhruva from Blue Banyan Advisors.
Sir, I have only one question. Congratulations on the successful trending. Pretty sure that you're going to start [indiscernible] order book that you have, I remember last time, you had talked about 18 to 24 months horizon for that to get [indiscernible] . Is that still the case or do you see any change like in that time period?
Yes, I think the 7,000-odd crores of order book equals to 1,250-odd megawatts. The provision is around 18 months also. So there all those revenues will be recognized in our financial number.
The next question is from the line of Giriraj Daga from KM Visaria Investments.
A couple of questions from my side. First, just what was the [indiscernible] cash in the FY '19, cash revenue?
We will just check and get back to you on that.
Okay. And just within this also, what about the FY '20 expected number to the O&M side?
FY '20 expected O&M is approximately INR 120 crores of cash.
Okay. Second, what is the CapEx for FY '20 including common infra sites?
That is not something which we can forecast at this point in time because it's also a function of our volume we are implementing on the ground.
Okay. So apart from O&M, sir, [is there other CapEx]?
Just to address, whatever CapEx we incur is kind of knocked off because we get paid eventually and we recognize that revenue. CapEx -- pure play CapEx is only in terms of CapEx which we make towards plant and machinery. And to that extent, our CapEx in this financial year is sub-30 crores to 40 crores, for our 3 megawatts.
In FY '19?
FY '20.
'20.
FY '20. Okay. And how is the bidding pipeline looking for the new projects over the next 1 year?
Well, I think there are almost 13 gigawatts of bidding which has already been done. And as I mentioned, only about 1 gigawatt, 1.5 gigawatt of that has been implemented. So irrespective of the new order pipeline, which also looks very robust and strong, there's already such a massive pipeline which exists, which needs to be implemented. That market size is the least of worries, honestly, for everybody. If you notice, for the past 2 years, the biggest worry had been regulatory guidelines, clarifying how will auctions play out, that took about a year. And then for the past 1 year, everyone has been sitting for the grid infra to be made ready. So even if someone takes on another 10 gigawatts of bidding, let's say, over the next 6 months, you also have to have the grid infra ready, otherwise, people will keep winning bids without any implementation on the ground.
Correct. So that was my next point. So like you have guided about 3 to 5 gigawatts of implementation. Do you think that infra is available for the next, let's say, FY '21, to be 5-plus gigawatt of commissioning to complete this existing 13 gigawatt of ordering?
Well, I think over the next 1 to 2 years, like, for example, now SECI-1 infra in our case is being readied, which we will use for SECI-2 and then so forth. For some people, some infra is being readied, for example, in August, September. Adani's infra is being readied around that time, they are not ready yet. There are some other IPPs whose infra is going to be readied by year-end. And then you have a couple of other grids, SECI central grid infrastructure which is being readied sometime in calendar year '20. So I think broadly speaking, if you look at the next 2 financial years, '19, '20 and '20, '21, I think we should have common infra in place for at least 8-odd gigawatts, that's number one. Of course, within this order pipeline, some of them are state bids. Like for example, the recently concluded Gujarat state bid. There are people that [indiscernible] can be built very rapidly because the common infra already exists for state bids. For example, the 14 megawatts which we won, we are going to put it up on one of our existing sites in Gujarat where a common infra already exists. So state bids will be much quicker than central grid.
So do you believe that 5-plus gigawatts in FY '21 is possible?
In FY '21, yes. In FY '20, it could be 3 to 5 gigawatts.
Okay. My last question was on the receivables side of it. If I look at the gross receivables, if you can give me the numbers, the outstanding for the year number, what is that?
Sir, we can give you that offline. Right now, those numbers are not with us. So you can see at the end, there is a mail ID at the end of the presentation. You can shoot a mail there and we will respond to it. But a large sum is -- pertains to SECI-1.
The next question is from the line of Shivan Sarvaiya from JHP Securities.
Sir, I have 2 questions. One is regarding the order pipe -- the order book that we have. Sir, you have stated that it is 250 megawatts with approximately INR 7,000 crores of revenue potential. So I was just doing simple mathematics out here, so our realization comes to lesser than INR 6 crores. So is it -- is this something that we are seeing some pressure in terms of pricing?
You know what you forget is a part of that order book, a significant part of that order book is equipment supply. So under equipment supply, we don't do this piece. So the math which you've done of 7,000 divided by 1,250, that will not work out because for all the equipment supply orders in the system, you will need to add the EPC value, which will be about INR 1 crores to INR 1.5 crores per megawatt. If you add that to the system, then you'll get average pricing up for the INR 6.5 crores to INR 6.7 crores.
So sir, in this 1,250 order book, majority is with the EPC, right?
501 is without EPC.
Except the Adani one?
Except the Adani and within the 1,250 also we have about 100 megawatts without EPC. So we have 600-odd in this 1,250 which is without EPC.
Okay. Okay. Got it. And, sir, there is one bookkeeping question out there. There is a capitalized expenditure of INR 27 crores, so if we just could get the nature of that item.
That was a small work in progress which got capitalized, that's all. There's no additional CapEx which we are taking it's a -- I mean that was a capital work in progress.
Okay. And, sir, last one. What would be the straight lining of the O&M that we would have done this year?
This year, it -- the O&M income was around INR 156-odd crores.
Cash.
That was cash. It is approximately INR 90 crores to INR 100 crores, but we'll just check and get back to you.
Okay, okay. I'll take this thing offline then.
Okay. But it's approximately INR 90 crores to INR 100 crores of straight line revenue, but we can check the exact number and get back to you. We can check the exact number and get back.
[Operator Instructions] Next question is from the line of [ Mayank Sethi ] an individual investor.
Sir, my question is in case [indiscernible] most of the [indiscernible] comes in outside the guarantee period, would the EBITDA margins increase beyond 14% to 15%?
Well, to be honest, we first need to get back to 14% to 15%, and I think that's possible once we achieve normalized volumes. For example, in FY '18, our sales were only INR 400-odd crores. This financial year, it's up 200% to about INR 1,500 crores. Once we reach certain normalized levels, we should be almost about INR 3,000 crores. That's when we achieve EBITDA margins, more or less, on our historical numbers. And, yes, as O&M revenues kick in, this will add to that margin.
Like this will be paid by the clients to us?
Yes. Obviously, because we provide services to the IPPs.
I understand. Sir, my next question is I also needed inventories and receivables figures, aging of these anything that is beyond 1 year? So maybe I will e-mail on the e-mail ID provided in the presentation.
Please do that.
Sure, sir. And, sir, under SECI, what is the contracted receivables period?
Under what? Can you speak louder?
Under SECI, SECI bids, what is the contracted receivables period?
SECI revenue normally comes on a 3-month period.
But that is between IPP and SECI. We...
I think that's our vendor.
Okay. Okay. And, sir, I also needed the breakdown of our finance costs. This quarter also it is about 50 -- INR 45 crores. So breakdown between interest and other bank charges.
We'll do that, we'll send you.
What we can share in the public domain, we will share with you.
Yes.
[Operator Instructions] We have a follow-up question from the line of [ Mayank Sethi ] as an individual investor.
Sir, some follow-up questions. Yes, so sir, this grid connectivity, as I understand, would be applied for 600 megawatt of execution. By when we can expect this -- all this 600 megawatts to be executed?
Well, we'll be able to do it as soon as we can, but I assume it will take us about 12 months to consume the entire 600 megawatts. That's exactly what I said in one of the other questions where someone has asked what kind of broad execution are we looking at in this financial year.
Right. And SECI-1, how much is remaining to be executed?
Well, we've done all the supply. We're now doing the final execution in terms of [indiscernible] couple of turbines, number of sites to be erected, few costings to be done. But at this point in time, we've got about almost -- how much is it? We have about 3 out of the 5 [indiscernible] . Around the 5 which we are going to be commissioning there, we've got almost 3 out of the 5 complete on-site additional capacity.
Okay, sir. So in this quarter, June quarter, approximately how much megawatt we can expect in terms of execution?
We would expect to execute the entire SECI-1 in this quarter.
Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their closing comments. Thank you, and over to you.
Thank you. Thank you, everybody, for your time. Thank you for being part of our investor conference. I think the year gone by is one that started off on a promising note. It took much longer than I anticipated in terms of the grid being ready and us being able to consequently ramp up execution. But finally, in terms of the full financial year, I think we would see significant milestones with respect to now the turnaround in terms of the financials of the company, with respect to common infra finally being ready for the future as well as we made a significant milestone on the technology front and on the order book front, where we continue to build on our order book front. I think as we move forward, we are much better placed from a financial perspective as well as from an execution and regulatory clarity perspective. I think the years and the quarters to come forward, we would tend to see a huge amount of execution on the ground. There's been a very, very large number of auction, which have already been conducted, and a very significant pipeline, which is in the near future. I think what is very interesting and which makes us very excited going forward is also the fact that there is this unique position in the market which has been created primarily for Inox Wind because a lot of other players in the market have actually closed operations or are facing serious financial threat. I think this is somewhat similar to the period in '13, '14 when we had ramped up execution in the market and captured a fairly large chunk of the market share because we had 3 or 4 players -- a couple of players are struggling financially and 1 or 2 have shut down. I think it's virtually a repeat of what is happening in the market at this point in time. And what is naturally under the auction regime, we need to be extremely, extremely tight of cost and fleet. I think it is well-known, Inox Wind has been amongst the lowest cost producer of wind turbines globally. And we are well prepared to thrive now under the auction regime with a lot of the regulatory hurdles behind us as well as a lot of the grid-related issues behind us. So we are very excited to finally get back into shape and capture a lot of value in the market as we move forward. So thank you for being a part of the call and we look forward to taking questions and talking to you all in the next quarter.
Thank you very much. Ladies and gentlemen, on behalf of Axis Capital Limited, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines.