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Good morning. We have a brief presentation on taking on a million and improved selling situations. Our international capacity is about 9 intent right now. And as we end we have been in for 3 quarters now. This half year, our CapEx has been on growth and our capitalization INR 3,133 crores -- we scattering the system and also being difficult trustees mutation. Operational performance, we continue to have a -- the means a state come down from sir, are regulated investment regulation tariffs as some availability up to 99 months, a 5% based. So we are better and one mentioned performance in have seen here the Q2 performance on water increase in the intact has also grown 8% on quarter-on-quarter basis to a basis, again, income growth is about 8%, a year is up by 9.7% to 18-month crores. Excluding the next, which was in last year in the commentariat, which was in the first quarter last inch. -- these compares included. As is mission the financial performance, the legalese transmission challenges are on by the half year, 9% growth in overall constant or has grown by about 33% primarily because we have in several new orders and as shown in the next following slides.
And also because last year, we have an interest result we see. -- for both reasons, we have a growth of 36%. That is the insignificant it is important for me. So you'll see a reduction of primarily because of the section item, which was day last year that I see from the office for a transaction -- some of the key financial because network is about INR 80 crores to INR 1,000 crores that activity has improved to 6 million. So one of the reasons for this is the repayment and replace CapEx having come on. So the readily it used to be a. That's now improved for 6 -- some of the numbers, which are of interest in telesurgery this year has come in significantly because payments are also the data which has come down. Intesa INR 500 crore. And this CSR expenses this quarter allowed flat growth, but this is a far than last, which is about INR 75 crores on Lee, which is very significant at this investor from a total Asacol, we had in the book of INR 37 crores this quarter.
As I mentioned, we have several new orders from global ones, louder men than the other but the product services. We have taken on these OTT so on government corporate expanding through the communities at a -- so we took a [indiscernible]. So our reach improves because of these acquisitions. And also, we have entered the realization of the transition to some broadcast. So wanting this equipment of as it has as -- and we are in out with the only online one of Lorissa, Consultancy income, INR 117 crores this quarter still growth not the ports, but we have received several orders and also new JVs involved like the NeoPrime the new tale over the linked engine portion. So it is about INR 400 crores in the pet as mentioned, however, to operator and then you go stockouts line.
And then the development is the corporation agreement with 5 wrenches -- so we already have signed a development implements our investment in Menengai, -- and this is the second project, which we have started with takes Otonomo, as I remember in the first quarter, we then segment not a segment is under the notes outstanding news consumes having funded and spread over installment. So our 2,400 crores has been sending this. And after that, we have been receiving really the bidding and new amounts are most on marketing, where we have forints. -- of it is some that based on a week. We generally is in point. So we like some motion this in the first quarter of the next year, we should see the orders that institution to start.
The other progress in inaction. We don't use some investment and those decanters. 2 projects are acquired in the severance assets and then there is the transmission is -- the allows in the arsenal have. In terms of specifically, we have signed a long-term moments party standard of excellence in sense to provide asset facilities and now reset in the area of cyber security of 3. So if you said long-term commitment for 10 years to do, we will take into and then will be in the superposition strategy rate security.
We will state [indiscernible] were established with scale transmission as a plan systems. So these are inspired by the national transmission basis by the city center that we have 2 substations. So is and we want to put themselves at central to monitoring operations -- so those we have reinsertion is one of the action seen some powers the cancelation entities. We have been on entorhinal such also rewards in this time apotheosis from Gena CStone. Now going in the growth in the sector. As well here, we are now on the journey towards in sustainability as well as we is that direction and we have a commitment of the government or 15% capacity to come on post -- so in significant capacity addition to words and 2 main aspects to a decade in the word. So there is going to be a significant growth in the installed capacity of segment. And that one volume investments in the is because the emits better and there is a lot of environment but extend this year beyond so there is an industry transmission because the generation sources are you should be like this in a basis one is that different locations, we'll vibe seeing significant investment about INR 4 million crores is expected by 267. So the growth in the transmission segment is going to be significant and will pick up as the retail projects are expected to come out and in line in the developments we have laid and lanes interaction for one over INR 100,000 crores for CapEx this year or at solution in similar it last year. Next year, again, we expect to see one of our expected to go out in mixers. So that concludes the presentation.
[Operator Instructions] We have with us tri-sector corporate care. Executive Director, financial oils with us as one is near director of distribution.
So to commission of Carlo. I have questions just that the volume of is that as a fee by the contract. Otherwise, you expect to area and consolidated.
So one comment what do you see as the -- and second, as the company is concerned, I also said that additional capacity is going to come because of renewable sources of new sources and I understood that they have to you.
So when you have low PLS, your transmission at because at from the source to the consumer. So in addition attentive, how does that compensate it in terms of time -- you are low then your capacity, which is allocated in line having bought 50% position that -- while the distribution segment is in - I don't know how the direct benefit as such we will improve our promote things that are One is competent subject to Eastern that benefit has been attended by many a few states. But what is the government has come out with this revamped distribution centers BS. -- compensation and funding from PC have we seen to basically address the issues, needs, do you spend in the infrastructure with the distribution and count just by turning on best -- this is the indicator we have to be made. So they have not published quite accounts. There are some of tariff revisions every year. So they are not the funding and radio.
So that is the direct relationship, which has been provided under the steam and it is a big scheme in the ortho of this of which 97,000 GPs, the support from the core. So a significant amount of funding is a state. So sales are coming on more than formulating schemes, which are been approved and tearing is also started it. So I think the government from the center is very much focused on meaning distribution utilities by long-run liability. That is the focus. And this method has also come in the recently audience. So the public celebration, there is no decline that everybody on the same patient, but we're very well their own financial provisions and their own change of the retina -- but the DC scheme and in part improving its -- as regard renewables and transmission that yes, now have. So the line utilization will be corresponding info. But would the telepath transmission assets based on a trial. So transmission tariffs are not in this to. What will be the regulation the viability of the line liability of generation, whether that indoor transmission costs and before.
So 2 things are happening on, what is the immediate evacuation that definition is changing. So that is on most of the lines in a Second is that storage is also being to protect as an option to improve the transition and camera we have these, we are talking of cars, a storage component also going forward. So that the right utilization can go optimize as 67.76%. And thirdly is the use of hybrid sources. So in plus so that they complement and then they come at different times and the implementation in those.
So these are various measures, which are being planned in -- can you explain it is still on the aero can you assume that a company China?
Yes, I think it is less clarified that is treated to the [indiscernible]. So we can at to that line and pose which is an acceleration then that it is proactive. So it's not a one on the interested transmission CapEx. Cs come out to national meriting a 2017 . We are bona number 28 billion. It seems to be more a media a little side.
Do we think we'll have some at transition?
Yes, I think. Yes, it is under work. So what we are seeing is INR 140,000 crores in -- the online is still to be developed. So it is our disinterested or at nation. Justine development. We issue decision to optimist is in alanine had target of 75 billion in the fiscal '20. -- may not like to come up, do you think we are able to complete the course of it first on year 2. And with the debt market tapes, we especially -- so I think the market... That panel cars can take... On this year, the net was for last year, we do more than the dilution as the yields are, we would like to component that will be reduced. Second, there are sale decisions around the balance more of [indiscernible], -- so all those are result, it will take some time. As regards the specialty meat there are premium ease last year we especially prices because as in premium.
So there is optioning the investment in aspects or at actions, which come into plus crores to... Is the view on factors which come in terms of omit transmission times compared to the bank in a one in the capacity generation in as Mariano coming so far, 2 tenders have said indicated storage on merit. And then the targets are significantly higher. So that enteritis. As it stands today, the begins to these costs are significant -- but the progress in all tangential into the reduction, and they will be it and mix implication of the transmission system will go up there for asset deal, the system cost of an cost of -- so that is basis limited that is on whether in some part of it being done with generation because it has some for around the drop some larger duration so -- so those will definitely go generators. But the opportunity in the transmission will be in the form of those who entertain The operating change too... The remaining 3 retail app...
Are we on any discussions on tests discussion?
I think this one externality be consumed. We are the on rather it also. But otherwise, once we have finalized the tender in the -- so far in the smart pager segment, the joint venture of our joint engine a joint site has a joint venture with NIM gym. They have mentioned in the process of submitting is about INR 4 crores, INR 3 crores winters. So lengthen the equity sector, the process. To that entity we like to have ones participation -- this one basin to parent directly, but to Geismar, we are sacred...
Yes. This is Asaf. So if you look at our cap guidance for ever as well as FY '24, we have seen roughly about 1,800, INR 1,000 crores. Now if you do tend our cash flow generation due to almost generating about INR 500 crores for first half. I annualize set around INR 250 crores, INR 26,000 crores. Our net goes already come down to 69. So going ahead, what is in on as the point of this cantonal or increase won't pay because a lower net equity will significantly affect our return on ratios. So what's the view on dividend payout and cash flow One, I would like to does not affect the core because the related care structure is such that over time. So it doesn't impact the engine. Second, we've not been consistently increasing the bill. So we have not seeable keeping cash. If we don't see a significant in opportunities to increase INR 300 crores actually the -- so as far as we see inordinate whatever depreciation is submitted. To that extent, in ceding doesn't happen, then you don't even neonat -- so the question is tied has been on Okay. So it is better than quarterly depreciation we had INR 1,000 crores, it is a The further you see potion of our regulatory we don't think that it will be paced...
Yes, you are of the age structure, you start with 70, 30, 20. -- directly to 66% -- so it continues till comes down in as constant and the price. So the decrease in debt does not impact the is this time in investment and now with your question on the asset monetization. -- course, you mentioned that there are some modes of monetization as under discussion.
So you testation monetization model? And the second question is on you look at the monetization in the same type of player. Could you please throw some microtel -- what is the second part -- what are you looking at...
So in terms of monetization or amortization avastin -- the other question is that result because models of monetization, one is the group. And the we have already sponsored one it. So whether we should put new assets coming into that or we are committing in the coming which also won community participate on the fit or the those issues under Basel. And then even when that should we do modernization to detection, I know that is also one option. So One of our association has done that. So that is an option we are eating. So these are things intentional any of you expected a was -- we annotate INR 5,000 crores. So we have done nearly INR 300 crores. This year, we were at INR 6,600 crores. So Redeye, we still have more force to go if we have given this in -- but within the improving the equity , we are not under stress from resources...
So my question -- on the label. We're not in plants from the big business and it seems that thinking. -- you give us a comment that right now, we have in mind is strategy. There are 2 potential strategies, which are required on the systems segment other is the line I can email conditions and also because of accurate, there is low dedication grossing the grid there is considering Therefore, how many system to be designed to gain in substance is currently industry?
So once these studies are done in the system basis, then they will get tendering around at least. So 2340, expenditure, CapEx rest -- this is a -- as expected to an -- this project that... I know this is an age from a pedal. I've got a couple of questions. So enables are on please to $1.6 billion in September '20. That's compared to 19 million -- and part of it is beset classification is... The unison part of the central centers. So that is one reason. Yes. So I pray results for the quarter. We just reduced to the other financial. Okay. And so the trading activity has been low in H1. So any specific reason for it and you expect to be One of our private competition antenatal drop to 19 million. And most of [indiscernible] are only because of the GI shoe. So any sorry. there is parting through the increase some amount of transmission projects have rendered. So as I understand, the bid process coordinators are going to the Supreme Court wanted to continue to the clearance from that competitor the loan can value -- so in the plan then the bidder goes and Brexit, that it delays the process at coming typically, we are seeing take 4 months to.
So rather than to the report's coordinators in as you go on to the of the debt so that another -- so any an up... And in 3 months or 3 months, it should be okay. Higher under, therefore, so let me update only some transition projects. I mean any near-term rate is nation, the first one in normal nations. And second would be is for refining to meeting of anakinra near the bidding side on opportunities. And in a with several projects in station come up after the coopers. And Catalent partner in which are expected to some tie...
How have protected already done and the quarter was reelection mainly coming after 6 months or so. for both... About INR 34,000 crores scores what over this will come subsequently. But Yes, -- this is a look from Siyi. So just 2 questions. This -- is CapEx estimate that we share 1.27 and the similar number between 2010 and '13. How can that really BCPI mean how much of that can be in the nomination that is one. And what kind moonshine... A significant part of Much of it -- and then we are targeting them to get around 40% to 50% of that... And then in on this is smart living a gene that we have put out. So what will the extent of signs of procurement that we've been doing an opening? And the expense of the investment that you can do, what is the revenue point around that? How are you going to reanimate, what is that pro...
So in this review of the pros INR 7 crore, INR 8,000 crores, exclusive the OpEx. And the revenue model is we have to offer a permanent. So for 9 meter months, we have reported later than that, and that will be paid by the 2 proof -- the these 1 crore miners are under the combination group. So there are general produce the translation through compatibility growth for the capital cost and operations. After that, there is a certain project management charges and then the back will be somewhere around 10%. So it is not in terms of R&D, but it is in terms of that. So we have to optimize on the cost update just so one is the supply not discount, you take from you and then start a we have to maintain the '19 events. Strategically as an operating can you first then have to go in a store and make sure that...
Do you have bankers or going to all of that and so the meat agencies to do that.
So we don't have to ataluren we will also have teams to also pelican there will be since value. And last wondering why not the mine already have on the go. what is the pro behind our interesting transition company like permanent work and not just compete on a business on the ground. So what is the parts behind what means the availability of casted we also do the transmission and any a... That is one. and seen to design the system and to be now in large number that we will come ones. So the first question was about our opportunity you have INR 2.8 trillion. Is it possible to just use breakup of how much of the future diet -- and a seeding that was the resonancy corner seat of that is part of subsea entities that understand are not significant expected -- most of this that already in the that is not part -- the second one ones around the monetization. So this is dedication the regulatory projects, and we see other moves from one case in terms of metal related projects of monetization to what we want us to do.
We want us to do regulatory asset asking you -- I think earlier there was this amount on instead of the relator assets, there is still such position -- it is very structure we have, the -- can separate SPVs, so to move them to the puts. Regulators are sitting on the main base. So you have the tent cash. So that is not complex and there will be leakages. So we don't want to do that as a preferred to option. Sir, second question was about battery exposure. So I mean, is there a thought process that you to the government to become the sole parent for the past sector -- it is not a Battery will be -- I mean, as per the government guidance on is able to set up an attestation. -- is still a sense it is not transmitted. It is not distribution, it's not generation. So there is no restriction, it can be offered any of the providers or it we offer even be dependent battery indicated storage... Yes. Again, to from Citi. So just some opportunity to monetize it the muted tenant projects. So you taconite also seem to suggest that to remind this stainless taxed is tainted of passing elders people just assigned the revenues to be made by regathering remains with orders main balance sheet.
So have you done any like check from that any tax confident on that whether that is keen and work or it is just like a ship or process and that may not do the quarter?
As per our strategy, signing revenues may not work because it can be as a lease and subset to GST. So that is a leakage. So for transmission assets in the work... So in a peer that there is no way to avoid it and hence, any modernization of the regulated tariff mechanism projects unless there's a change in by the government itself is not visible at this point in time. Is that in... Not that - If you look at single register was cities. There are other charters, which are visible and those are in the business. Like a debt because a lot of burning when we move on to the next step of monetization of even the RGM projects... Not me, you can transfer the shares for invest in SCD shares of the about back -- so that is a...
No, sir, I talked to you about the RTM projects. So I'm not talking about projects at all Okay. So is an opportunity. There's no mention happening in...
No, I'm not saying that is I'm not talking in when I said we monetize it and I'm looking at a abastic RDM or PC, which one makes more sense, which is easing to execute. The baby Casenet has enough CV assets which are available. So what is the rationale to shift and do a times, which is that as more difficult -- so if we -- the objective of this asset artists on that optic is deemed by monetizing in the that should be in the first 2 rents because I think the semination are secure on the main balance sheet, we have to cargo. The table to debate, they have to do some of the structure and then transfer them to the new entity. So there is -- I mean, is it not delete the February year if you have red INR 10,000 5,000 crores of monetization motion the whole scheme to take out some assets because it Wetter. So to us, it looks very complicated. [indiscernible] so from HSBC.
My first question is on the data project. I said project no expected to start our studies are 3 studies for the system as it is traditional, it will ease the year... Here... In the before we do the first CapEx 24 or 25 to later. On your smart meeting project, you mentioned diocesentially 10% overextrapolate I think it should be even to the utility. On the total capital -- and you did the same anomalies with the distribution companies or business tribunal on -- there is a facility for loving through the realization from the customers. So that EBITDA on the cost. So that should solve the issue. And then secondly, since electing the of the rest -- and so this to re assignment of the Tibotec agreement because it is on our balance sheet, it is not very recoverable, but it is going to our substation. Substations are not covering that to density.
You consider the importance to smart meeting. That is the way we ended and substantial in the installation of smart testosterone improve the year taking it the more stake. So if we start, you need [indiscernible] to what extent can be looking forward to entities or will it be iterated completely -- then on aspects of this is the -- loss. So now machinations of initiates. So there is those will be eliminated because of this part. If you have prepaid smart meters, definitely, there is no portion of noncore -- as far as the technical cases, the technical losses which are there in. So that trend to not have some amount of intonation meter that will do losses -- we said this market will give you more also in the benefit of many your talent or to the time. So amounted dates, then sharing you can now demand side management very intricate some lower the level loan cost are now more analytics on the data rate by the smart meters. So we it's not just a reduction in the losses...
Yes, exactly because convention. I'm wanting to the cost per toter... That cost per diluent to the consumers will reduce some of the these -- that is the idea of that margin not just to reduce G&A losses.
Yes, And sir, how much content the cost of its market depends on the case in defections which has a different cost. But including out ethical so to semester. project at CapEx recovered. -- to how to logistical projects are generating the silicon in our cycle why it's still in a with there are 4 phases as it always commission due to current revenue. But then the -- I mean in the ones regarding the -- are. So for example, the project cycle in the for 6, 7 years, so you can keep providing revenue from -- and this is I said here. And those of you that you point option to higher sales than assume how do you expect the investment in a position?
So great automation. The will several aspects that is that because of the mining pools, they will have to be new investors in the east platforms to maintain the ones of -- those will be part of the ICS network. Then at the individual utility development operation will be in the form of, as I mentioned, about ME and is a presentation looking for transmission asset management sectors but the interest in network. So those investments, maybe not infinities, slightly more operation and we monitor in the network or they're being asked us to do and that can be an opportunity in [indiscernible] management and uncertainties on investment. Then there is also the investment in the communication network for the state impunities on the network and it mitigation intrastate be operated. So that is giving us an opportunity by later resin and the Eastern it -- so reset rather than Eastern region, the standup resin. So basically will be doing the investment and regarding lease is the digital substation.
So these are substations where there can be communication between the equipment and the background centers digitally. So you mean wooing and improve the communication we can trust ourself. So that is, again, another digestion in which investments would take. So one of things we are now building -- so in other side, we have a really [indiscernible]. We have previously operated on a Mother or Sabina. One more we are doing in general were in the substation, and this is the arose. So that on the directions from which to automation is consumed. So a first project opportunities for our operators with the JV on October BBCon largely invested and the second line call.
Yes. The industrial segment as badass many opportunities have come there so our ecosystems, ruminants. And 2 others are the transaction needed since on and some -- but these are not anything in a rate as we sort -- so a couple of developments, each state is now required to do for isos is static study and plan further capacities in the Asia. And accordingly, also given the acquisition of the general rental taxes, the interest rate system. So I think there will be more systematic planning on the intrastate transmission, we of these opportunities. Right now in also their conservative investment in tacos. They are not building the network. And some of the sales and connotation is in their own business. So they are not pretty consolidate. Sutent route excepting we have not been successful. They have not been very for. So states like UP Rajasthan and they are going to an initiative. So JB hasn't taken -- so we are close as the last investments and providing often in how we compare the one controlling resets or sit to transfer to the transport assets are you tend say that are on these stores.
My last question is on the tax change. In the first half of the year been the standard tax payment just to be the... Is there any specific... Testing was specifically in what is the level coming the first quarter the second quarter, so end reversal better tax -- there's no…
Well, with this, we come to the end of the question and answer session.
I thank all of you. On behalf of our operation, in I also thank the Government of India, the Power Ministry, the Ministry of New and Renewable Energy, Ministry of Telecom, Government and the Poland family of approximately 8,000 denied antibodies and big things happening on a day-to-day basis. I also take the coronaries Cayan for patiently on saying all the questions in the volume of questions I have -- thank you to Mr. Raver, Director of Projects. Thank you to Mr. R.K. Dani, Director of Operations. Thank you to Mr. J. Raisanen, Finance. Thank you to some ability, ED corporate planning, Timisoara, Exede Director of Finance. And of course, thank you for Mr. Ronald Suba, company Secretary and all the members of the panel make this day's session uses. Please do join us for lunch after this. And for any further questions, ad factors, the Investor Relations team, we have to coordinate with the management. Please do like us as a factor and also to catch out of the cooperative operation team.
Thank you very much, sir, and have a good day.