Emmvee Photovoltaic Power (NSE:EMMVEE) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Emmvee Photovoltaic Power Limited q one f y twenty seven conference call hosted by. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touch tone phone. Please note that anything said on this call that reflects the outlook towards the future, which can be construed as a forward looking statement, must be reviewed in conjunction with the risks that the company faces. A copy of the disclosure is available on the investor relations section on the website as well as on the stock exchanges.

0:46 Kindly also note that the audio of the earnings call is a corporate material of Emmvee Limited and cannot be copied, rebroadcasted, or attributed in the PR media without specific and written consent of the company. To give you an in-depth understanding of the company and answer all your queries, we have from the management side today, mister Manjunathar, and managing director, missus Suhar, and CEO, and mister, chief financial officer. I now hand the conference over to Mr. Manjunathar, sir. Thank you, and over to you, sir. Thank you. Good evening, ladies and gentlemen. A warm welcome to all our shareholders, investors, analysts and colleagues joining us today for Emmvee Q1 Financial Year twenty seven Earnings Call.

1:39 Thank you for your continued trust and confidence in Emmvee. Financial Year twenty seven has begun on a strong note for our company. During the quarter, we delivered revenue from operations of $15.55 crores, EBITDA of INR $5.48 crores and profit after tax is INR $3.80 crores. With an EBITDA margin of 35%, our order book further strengthened to 9.9 gigawatts, supported by fresh order inflows and approximately 1.5 gigawatts. More importantly, these results reflect the strength of our business fundamental. They were driven by improved operational execution, higher manufacturing efficiencies, stronger integration benefits, disciplined cost management and continued customer confidence.

2:28 Operationally, this was our best quarter so far. We achieved record production across both solar module and the solar cell with higher cell utilization further strengthening the advantages of our integrated manufacturing platform. This quarter also marked another foundation day for Emmvee. Looking back over more than three decades, we have grown from small solar water heater manufacturing into one of the leading Indian integrated solar manufacturing companies. While our scale has changed significantly, our values remain the same, quality, innovation, customer trust, integrity and long term thinking. I sincerely thank our employees, customers, suppliers, lenders, shareholders and all our stakeholders for their continued support and confidence in our journey.

3:24 Looking ahead, we believe India is entering a defining decade for renewable energy. Growing electricity demand, increasing energy security, domestic manufacturing initiative, electric mobility, energy storage, green hydrogen and data centers are creating a significant long term opportunity for the Indian solar industry. The implementation of ALLM Lease two is another important milestone in strengthening Indian domestic manufacturing ecosystem. Emmvee entered this transition from position of preparedness, our operational top line cell manufacturing facility and inclusion under ALMVEE to position us well to benefit from the growing demand for domestically manufacturing solar cell.

4:15 At Emmvee, we firmly believe that long term leadership will not be determined simply by installing capacity. It will be determined by technology, operational excellence, supply chain resilience, financial discipline and consistent execution. Our ongoing six gigawatt integrated top one cell and module expansion continue to progress according to plan. Upon completion, our installed capacity will increase to approximately 16.3 gigawatt of modules and 8.9 gigawatt of solar cell, significantly strengthen our integrated manufacturing platform. At the same time, we continue to prepare for the next phase of backward integration into ingot and wafer manufacturing together with our investment in digital technology, automation and artificial intelligence.

5:05 These initiatives will further strengthen our competitiveness and support sustainable long term growth. As we move through financial year '27, our priority remains clear, execute our expansion on schedule, increase utilization across our existing facility, strengthen technology leadership, maintain financial discipline, uphold the highest standard of governance and continue creating sustainable long term value for all our stakeholders. Ladies and gentlemen, this India solar manufacturing industry is on an important inflation point. The companies that will lead this industry will be the those that combine technology, integration, operational excellence, customer trust and disciplined execution.

5:56 At Emmvee, we remain committed to building exactly the kind of institution. We have started financial year 'twenty seven with a strong momentum, and we remain confident about the opportunity ahead. Thank you once again for your continued trust and support. I will now invite our President and CEO, Mr. Swath Gundhee, to take you through the operational and financial performance for the quarter in greater detail. Thank you. Thank you, Mr. Majnata, for your opening remarks, and good afternoon to everyone joining the earnings call for the first quarter of FY twenty twenty seven. We have started the financial year on a strong note with healthy growth in revenue and profitability, a record quarterly production, improving capacity utilization and continued momentum in our order book.

6:50 Let me begin with the financial performance. Revenue from operations for Q1 FY twenty twenty seven stood at INR $15.55 crores, registering growth of 51% over Q1 FY 'twenty six. EBITDA from EBITDA for the quarter stood at 548.1 crores, an increase of 56% year on year. EBITDA margin improved to 35% compared to 34% in Q1 FY 'twenty six and thirty three percent in Q4 FY 'twenty six. Despite the sequential decline in revenue, EBITDA was lower by only 4% quarter on quarter, reflecting operational operating leverage, optimizing of expenses and benefits of increased internal self consumption.

7:42 Profit after tax stood at INR 380.3 crores, registering growth of 103% over Q1 FY 'twenty six. FAT margin improved to 24% compared to 18% in the corresponding quarter last year and 23% in the previous quarter due to lower finance costs that's reduced significantly to 11.1 crores compared to INR 53.1 crores in Q1 FY 'twenty six. Moving to our operational performance. Both module and cell production reached their highest ever quarterly levels. Solar module production stood at nine seventy megawatt compared to six thirty five megawatt in Q1 FY twenty twenty six and nine fifty two megawatt in Q4 FY twenty twenty six.

8:30 This represents year on year growth of 53%. Solar cell production increased to four fifty four megawatt compared to three sixty megawatt in Q1 FY 'twenty six and four twenty eight megawatt in Q4 FY 'twenty six, representing year on year growth of 26%. Effective module capacity utilization stood at 45% compared to 44% in both Q1 FY 'twenty six and Q4 FY 'twenty six. Cell capacity utilization improved further to 83% compared to 68% in Q1 FY 'twenty six and seventy nine percent in Q4 FY 'twenty six. The continued improvement in cell utilization is an important operational milestone.

9:20 It increases the proportion of internal manufacturer cells used in our modules, strengthens our integrated manufacturing model and supports better control over product quality, supply availability and margins. Our current installed capacity stands at 10.3 gigawatt of solar modules and 2.94 gigawatt of top constructs. Our inflow during Q1 FY 'twenty seven stood at fourteen eighty four megawatts, consecutively, our order book increased to 9.9 gigawatt of the end of the quarter compared to 9.4 gigawatt at the end of FY twenty twenty six.

10:08 The order book provides healthy revenue visibility and reflects continued demand across utility scale, commercial and industrial and rooftop solar segments. Let me now provide you an update on our ongoing capacity expansion. Work on the six gigawatt integrated top call cell and manufacturing facility is progressing in line with our plans. The module line is expected to be commissioned by December 2026, followed by the cell line by March 2027. Commercial sales will commence in line with the respective commissioning schedules with capacity utilization expected to scale progressively. The total project cost is estimated at approximately INR 5,500 crore, including hard costs of around INR 4,600 crore.

11:00 Debt funding of approximately INR 3,300 crore has been tied up at the cost of less than 8%. All major equipment has been ordered, orders representing approximately 60% of the total hard costs have been already in place. Following the completion of this expansion, our total manufacturing capacity is expected to increase to approximately 16.3 gigawatt of modules and 8.9 gigawatt of cells by end of FY 'twenty seven. The implementation of ALMM List two from June 2026 is another important development for the domestic industry. The requirement for the use of domestically manufactured cells in covered projects is expected to expand the addressable DCR market beyond the government schemes.

11:51 We expect DCR demand to strengthen progressively during FY twenty twenty seven as grandfathered non DCR projects are completed and procurement aligned with the elements requirements becomes more broad based. Domestic supply of high efficiency top consoles continues to remain relatively tight, which should support the operating environment for established and compliant cell manufacturers. Our existing cell manufacturing capacity, improving cell utilization, plant integration, integrated expansion position as well to participate in this opportunity. We have also outlined our medium term plan to further backward integrate into ingot and wafer manufacturing.

12:38 The proposed facility will have a total of nine gigawatt and is planned in two phases, with five gigawatt targeted in 'twenty nine and FY 'twenty nine and the remaining four gigawatt in FY 'twenty. The timings of this investment will remain subject to the final clarity on the ALM List three and prevailing market conditions. The capital expenditure for the same is expected to be funded largely through internal accruals. This backward integration is intended primarily to protect margins, reduce exposure to upstream supply chain, volatility and strengthening the economics of our domestic sales and module manufacturing operations. To conclude Q1 FY twenty twenty seven represents a healthy start to the year. We delivered strong year on year financial growth, expanded margins, achieved record module and cell production, improved cell utilization and strong additions to our order. Our priorities remain focused on increasing utilization of existing capacity, executing the order book efficiently, commissioning the six gigawatt integrated facility according to schedule and maintaining financial discipline as we progress through the next phase of growth. I would like to thank our employees, customers, suppliers, lenders, shareholders and other stakeholders for their continued support. With that, we can open the floor for questions.

14:03 Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on the touch tone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and 1 to ask questions. The first question is from the line of Rohit from AccessMaxLife. Please go ahead. Thank you for this opportunity. First of all, congratulations on a very strong set of results.

14:52 My question is more to do with the EBITDA per watt in DCR and non DCR modules that you do right now? How has it shared in this particular quarter? What is the trend like? And what is the outlook over there? Yes, I think thank you for the question, Sultan. I think EBITDA in both non DCR and DCR have been in line with what we experienced in the previous quarters, which is also reflecting from our EBITDA margin as well. And so far, going forward, also like what we are expecting is a stable kind of scenario, and that is what is reflected as of now.

15:42 Okay. My second question is more to do with the capacity expansion plans like six gigawatt integrated cell plus module, where you have stated that the module plant will be operational by Q3 and you want to accelerate even the cell plant before the beginning of FY 'twenty eight. So when will the order bookings start? And what should be the quantum jump in order backlog or order inflow one should look will that be a right indicator to say that things are getting commissioned on track? See, order backlog is something that we've already started seeing expansion of, and that is in tandem to our increasing growth as well.

16:30 Today, we have an order inflow close to 1,500 megawatt and order book of close to 10 gigawatt. So with that, we are looking at almost more than close to seven plus gigawatt of orders that to be executed in the next eighteen months. So that is quite in line with our expansion plans as well. So yes, I think we have already started to see that. Okay. And my final question is more to do with the wafer backward integration. This year, stated that the roll up will be in two phases. Is the Board approval done? And will we hit the ground immediately? Or are we waiting for some sort of a procedural steps ahead?

17:20 There's no procedural steps rather like the timing that we have planned the commissioning is by mid of calendar year 'twenty eight. So, you know, that that does not require such early actions to our understanding. So that is something that in line we are planning because it's quite clear that our priority right now is expanding the sell in module and in that effort is something that we are adding in calendar year of '28. So we'll take the actions accordingly. Thank you. I'll get back in the queue. Thank you. Thanks a lot. Thank you. Thank you. The next question is from the line of Subramaniam Yadav from SBI Life. Please go ahead.

18:13 Thank you for the opportunity. Sir, if you can give us a trend of the number in terms of gross margin spread because we have the production number. And if you can give us gross margin spread on the sales number, that would be helpful. Thank you for your question, Supram and Vinci. So I think all like we've been guiding more or less on the EBITDA spread rather than the gross margin spread. So probably for the sake of clarity and understanding the trend, we stick to the EBITDA per watt. And EBITDA per watt what we had guided is around INR 2.5 per watt for this module and for the sell part of it of INR 6.5 per watt. So I think that is something that's in line to the current trends also.

19:14 From Q4 to Q1? Not much. I mean, it's in the similar stage. It's a similar state. If you see that similar system. Okay. And also, sir, on the overall mix of DCR and non DCR, how was it in terms of sales? This time the non DCR, non DCR mix happened earlier on the DCR side, which is the output of our increased margin percentage as well. So we have done, I think, over 50% TCR. Okay. And sir, how is it likely to be ahead in next couple of quarters?

20:04 So looking at our looking at our module to sell capacity difference and the market scenarios, there will be more module... More non DCR than DCR, but it's not going to be as dramatic as it... The capacity will look like because, you know, we have some comfortable DCR inventories that we intend to use in these coming quarters. Thank you. We'll take the next question from the line of Prakhar Podovoltaic from Ambet Capital.

20:49 Please go ahead. Thank you for the opportunity. So just one question. After June 1, how has been the C and I demand in terms of ordering order inflows? And also any I understand you have mentioned that from Q4 to Q1, the margins have been stable. But in terms of new orders, which maybe you'll execute the next six months or twelve months, are you seeing margins increasing again because of some tightness from the solar cell side currently? That is the question. So thank you, Prakash, for your questions. On the C and I demand order inflows, that's something that we've already started seeing.

21:38 But the supply of it is something that you should expect towards later of this financial year and not immediately. But this is the moment that we have already started seeing in our order inflows. And when it comes to the margins that is there, it's we've been in a similar state of margin per watt peak, like I said, both in DCR as well as non DCR sales in the Q1. And what you are seeing also is like, yes, there could be a slight better, there could be some slight improvements in the DCR side. But I think it's not something to consider rather just assuming the stable levels of margin more confidently is something that you should take back from this.

22:33 Sure. I'll just follow-up on that because I was giving some news about seeing that player specifically in Karnataka requesting the state to push back the deadlines given current unavailability of BCI modules. So anything given you're raising, anything on that also? Or is the availability in terms of VCI modules totally there and those are the scrumors, anything on that? Yeah. I mean, it's important to recognize that the ALMM implementation in reality is coming in a phased manner. And I think companies like EMMVEE are equipping ourselves in that kind of phased manner to be there at the the forefront of the industry with the expertise that we have for the last more two years of top one cell manufacturing capability to, you know, deliver the requirements for the the requirements, for the demand.

23:37 And I think the government is very clear. In fact, their intentions and discussions are now started are now we're all looking at the ALMM-three rather than looking at ALMM-two anymore. So I think this is something that's already happened. And now the we need to focus on how do we bring in the ingot and paper and ensure that, that is going to be done. Sure. And on the current capacity of 2.9 gigawatt, can you expect more run rate increase going forward? So let's say, four fifty going to 500, five fifty that kind of number? Because I understand the capacity is at 11 watt peak, seven ten watt peak module.

24:23 So just that before the new capacity comes in, can we see more increase in the run rate production? Yes. Yes. Absolutely. That is something that you should expect to see in these coming quarters. Okay. Sure. Thank you. Thank you. We'll take the next question from the line of from IIFL Capital. Please go ahead. Thank you. Thank you,, and congratulations on another strong quarter. I just wanted to check our sales mix, have we also sold sales? Or have we restricted ourselves to selling VCR and non VCR modules? Yes. Thank you, Apurvaji.

25:08 Yeah. Our sales mix also includes merchant sales sales. Okay. And is that a meaningful number, or is it very small? It is a... Is an increased number quarter on quarter, or this thing probably probably the highest we have also done in the in the past... In the history of MB also. So I I wouldn't say that it's a dominant number, but it's a meaningful number. Okay. Okay. Understood. Secondly, I I... When I see the financials, I see a sharp quarter on quarter drop in the cost of raw materials consumed about 18, 19% q on q, while the production has increased slightly. What is leading to this sharp decline in cost of raw materials?

25:57 Yeah. So see, there are a couple of things. I think maybe I'll let Pawanji add in. But here are the couple of things are that the mix of DCR and non DCR when it becomes healthy on the DCR side, you will see the COGS being much more better. And two, like I said, there is also sales sales sales that is involved in this quarter. So that is also a reason why you should see the absolute COGS also being lower compared to the previous quarter. Okay. So is this trend sort of expected to continue in future quarters as DCR sales become even even further? Or do you expect to see as a one off thing?

26:44 No. This this purely depends on the mix of the TCR, not TCR, and also the cells. So I think, accordingly, it could could could... It... Accordingly, it will change. So that should not be any guidance that should be taken out of that. Okay. Got it. Understood. But the understanding is that if the mix were to be the same, then yes, it will be similar. I don't see a change of that. Okay. Okay. And in last quarter, I recollect there we had a discussion about the inventory position. And so how is it at the end of this quarter? Are we seeing a wind down of inventory? Or it's still at similar levels? Yes, yes. The inventory, if you see in the P and L, there is some interchange in inventory, which is mostly finished goods because the production is high.

27:37 So some inventory has been added to the some production related to inventory. But otherwise, bearing this INR 74.5 crores of the additional inventory, otherwise it is in line with our previous quarter's inventory levels. Okay. And are we expecting for this inventory to wind down in future quarter, next one or two quarters? Or do we expect to carry this type of finished goods inventory into FY 'twenty seven? With the order book, heavy order book can be added another $4.51.0.48 gigawatt order book. So this can help us to liquid the inventory also, both in terms of finished goods and raw material also inventory will be used to have a improved production to meet the target orders. And added to that, this quarter, we have strategically kept a little more raw material and the material reason is of the geopolitical issues, what is taking place.

28:34 Okay. Okay. Understood, sir. And sir, lastly, I think on on the availability of silver, I think government had imposed some sort of restriction on import of silver. Do we are we facing any challenges because of that, either in terms of securing the raw materials or in terms of the pricing in India? It's a good question. So we are not facing any difficulties. It is only procedural has been introduced. So what we have to do is now we have to apply well in advance to the DGS and D for what is the import quantity we want to bring it. Then, accordingly, they are giving approval to the import. So what we... We are following up is we are following up three three months inventory what we required. We are applying in one time, and there we are getting into the approvals in time. And the last by the time of introduction to Tilde, we have not faced any difficulties as soon as we are applying within three to four days, we are getting the approvals.

29:37 Okay. And sir, is the pricing in line with the global price or is there a premium in India and the retail or the spot market? No. We we still it is an imported only. So it is in line with the earlier prices. There is no changes because the still we have largely depend upon imported. Understood, sir. Thank you so much. I'll get back in the queue. Thank you. The next question is from the line of Sahil Janesh Seth from Anandrati Institutional Equities. Please go ahead. Hi, sir. Thank you for the opportunity. So, sir, just following on a previous question. You said the finished goods inventory was increased in this quarter. But if I were to look at the DCR number from the DCR portal, the model manufacturing and sales data is quite in line. So would it be fair to assume that the off pace, lower off take is only in the non DCR segment and not as much as in the DCR model segment?

30:37 No. This is not the update. This is the other... The non DCR normally we produce based on the RRP update only. It is all done. The pickup of this particular quarter is not being done in the last month because of the establishment and other things, which is the movement is going happening in this month. This is as per the normal cascading that would be expected. Because of some lines in the those areas, they are not able to pick up the materials. Okay, sir. And then my second question would be, when you previously mentioned that the 50% mix was DCR, does that only includes DCR modules or it also includes that... Your DCR sales in that mix? Both included. That's both included.

31:24 Including both. That was helpful. Thank you, sir. Thank you. The next question is from the line of Karen from. Please go ahead. Yeah. Thank you for the opportunity. So I wanted to understand, like, we have a 50% mix in revenue for DCR. So is it similar in our order book as well? Order book is... There has been more and more increasing in PCR in the mix of order book. But... Yeah. I mean, like... But there is still a good non non PCR portion as well that is there. But, yeah, it will be around similar speed.

32:12 Understood. And what was it about the blended realization for modules currently? Realization for module in the last quarter was, I think, around $15.15 cents. $15.16 cents in the... Not this year. Not this year. It increased for us because we sold more DCR modules this year quarter? That is a small increase about... On a blended one, it is going to be about 1 rupee increases. No. Understood. And one last question, like, would be our peak utilization that we can achieve in modules and sales? And when are we expected to achieve for the current facility?

33:00 So peak utilization for sale is around 85% to 90%, which we are already close to that. And with respect to modules, it is about it will be about 65%. But with cell, as we are transitioning to G12R, the overall effective capacity is also going to increase. So you will see a higher production volume even though the percentage could remain similar. So our transition has been completed or is it still in process? Already done. We have started the... This thing. We have already... They're coming. So we have partially production. We have partially completed the conversion. So then... But then the remaining is, you know, we will convert it like a sequential.

33:49 Understood. Great. Thank you so much and all the very good. Thank you. Thank you. The next question is from the line of Meghna from Old Bridge Capital. Please go ahead. Just a follow-up to the original question. What... In the coming quarters, what is the more utilization that we expect? And when do we expect I think you can take it at... On a base case at similar levels. I think that will be a fair assumption to take it. Okay. Got you. And any color on when do we expect to achieve the 65% level? I mean, we will offer like we that we will increase we'll keep increasing the production volumes rather like instead of guiding on that, what we are stuck to guiding is strictly on the EBITDA overall EBITDA absolute EBITDA perspective.

34:55 And we're looking at around 2,400 crores of EBITDA, like closing this FY 'twenty seven. So we should be reaching increasing levels of utilization on modules in sales as well. Got you. Thank you. Thank you. The next question is from the line of Karan Gupta from Asset C Mehta Investments. Please go ahead. So my question is on the capacity utilization of cell. As you look at the previous quarter's numbers, a couple of quarters, the cell capacity utilization has improved significantly from 50% to 83% if you compare quarter four FY 'twenty five.

35:48 And your EBITDA per watt is more or less similar in line. So my question is on, we are not getting the backward integration benefit plus the utilization benefit in our EBITDA for what numbers? No. You are getting it. On per what number you will not get because it's, again, if your utilization is going up or what, like, you know, your production is going up, but mainly, like, you know, it's the ramp up of efficiency and the raw the raw material that's happened. But also, absolutely, like, you know, you can see that our module production has also gone up. So on blended basis, it will be difficult to, you know, measure that. If you can't let say to module ratio, which is if I assume, let's say, your sales... 100% sales are going into your modules.

36:49 Right? Whatever the cell number you have produced, 100% going to the module side. So which is which is in line, I mean, five to 46% historically in couple of quarters. So this is the number seen, but as the capacity utilization is increasing, so the benefit of backward integration plus the benefit of your capacity utilization, which is operating leverage should come into the EBITDA per watt numbers? What's your view on that? You can see the other operational improvements in this on these clients. No. One more thing. If you see the previous quarter, the... Q4, the EBITDA margin around 32.84 and this year... This quarter is 35.2.

37:39 So so this is also because of the mix and we are getting benefit of a domestic sales produced. So this is also getting reflected in the EBITDA margin. Okay. What's the number of sell you are, you know, selling to outside or to the merchant? And what is the in house We are not disclosing the we are not disclosing the sales mix of our sales modules and DCR and non DCR. Rather like there has been a significant increase in cell sales this quarter. So the understanding that all the sales that we make are going into our modules is not correct. Rather, there is a big mix of both we are selling separately as well as we are using in our own models. So that is why it will be difficult for you to look at it on a EBITDA per what we call a blended basis. Rather, like, it is something that you should, like, know, it is something that that there has been that reflection in the financials.

38:48 Okay. So in cell capacity, we are seeing the operating leverage part when we are selling outside, EBITDA per what? Stand alone basis for the cell capacity. So we are seeing the operating leverage part playing out in the cell part. Sorry, what was the question? So for the stand alone cell capacity utilization is increasing. So for EBITDA per watt, if you just calculate for the sell portion, the operating leverage playing out when you're selling into the outside market and, you know, consuming insight.

39:34 No. See, it's it's not it's not that distinct. We have to also be significantly, like, you know, aware that the changes in the raw material prices, either the silver or with respect to, you know, the other power other kind of increase in raw materials are not reflected where the EBITDA for Wortpik is going down. And this is happening only because increased operating leverage, because our consumptions have been more streamlined, our operating efficiencies have become better, efficiency of the cell has become better and the consumption has become better. So that is why you are able to see this stable EBITDA per watt irrespective of the increase in other headwinds that we have seen.

40:24 Okay. So for the sell, we are getting better realization in the outside market? No. Realization for sales has been quite stable. So has been module, so has been DCR and otherwise. So realizations have been quite stable. It's in line with the moments in your, you know, commodities. So could you please put the number Mister Gupta, mister Gupta, I'm sorry to interrupt you. Sir, I would request you to kindly rejoin the queue for follow ups. We have a queue here, sir. There are those who are waiting for that one. Gotcha.

41:10 Thank you so much, sir. We'll take the next question from the line of Dhruv Mutchel from HDFC AMC. Please go ahead. Yes, sir. Thank you so much. So firstly, on the non DCR modules now, I mean, non DCR cell based modules now, what... At least the news flow is suggesting that the market has become more limited now because the market C and I at least the C and I market has shifted to the BCR sales now and also rooftop anyways was. And probably there could be some margin compression in the pure module business. But based on your guidance, it seems that's not the case. So just trying to understand the guidance that you're giving INR 2.5 on modules EBITDA, is that the blend of DCR modules with non DCR modules or just the DCR I mean, the non DCR modules?

41:57 Well, there has been... Like, just for clarity, I think that there are markets operating at different places, but it's important to recognize that the... There is only limited supply that has been always available for... With players who have the bankability and credibility of supplying to the, you know, the IPPs and c... And the IPPs of both C and R and developers. And today, whoever has the grandfather projects are the very, you know, very serious IPP players. So there what happens is the operating leverage of these, you know... Here what happens is that the selective measures of quality, stability and bankability becomes extremely crucial. So at that point, players like Emmvee are at the forefront of that where there is no pressure to operate at every levels. So for us, it's very clear that operate choosing our markets, choosing our customers in terms of without letting go of the bottom line is something that's been very important to us. So that reasonable return even with lower utilization is rather better than making a higher utilization and lower margin. So that's the philosophy we've been following.

43:21 Got it. So but purely on modules, based on your level of volumes that you expect, basically, I don't know, I think 50 or 60% utilization on the capacity of module, you believe despite the change in the market structure, but because of your positioning, you will be able to get to that two point point five to INR Yes, yes, yes. That's right. In that range, yes, absolutely. Sure. And sir, secondly, just to reconfirm, the the sell pricing... For example, the sales that you sell, they are based on dollar pricing. They're not based on INR pricing. Right? Yeah. Correct. For example, whatever is the stock market or the... Yeah. Consumer market, whatever, or C and I market, that all happens in the dollar dollar pricing base. Correct. So any... You know, the dollar change, which probably has some implication on your input pricing, but to a large degree, it's offset it because the selling price is also in dollars.

44:14 Yeah. Yeah. That's correct. Sure. Sure. Okay, sir. Great. Thank you so much, all the best. Thank you. Thank you. The next question will be the last question for for today from the line of Dhaval Pupesh from Choice International Limited. Please go ahead. Thank you so much for the opportunity. My question is... This is regarding particularly passing of the raw material cost. You did say that that it moves in line with the commodity. So is it fair to understand that you are still able to pass on the raw material or at least certain part of the raw material cost to the customers? Like, for example, as silver fluctuated so much, were you able to pass on these costs? Or how should we read this? If you can throw some light on this, if possible.

45:02 Yeah. Yeah. This we have answered even in the last time also. See, we do two types of... The pass through will be done in two ways. One is we'll do value engineering in the production. If that is there, we'll not pass through to the vendor if we can able to make a... Make it within in line with the... Our margins. If not, yes. That's that's why if you see the change in the prices will be there. That's why we always say absolute number of EBITDA will always will consider not on the percentage. Percentage may vary because if my price is high, the percentage will come down. If the price is low, my percentage will go. But my absolute number will remain same. Okay. Okay. That is helpful.

45:48 And I'm sorry if I missed this, but there was should we expect that given the prices decline, could we expect recurring inventory losses or that would not be the case? Or how do you plan to predict again this inventory losses particularly? There is no decline in the prices. But what we said is non this year, we normally produce based on the other inflows only and which is already covered by the advances and the agencies. So which it doesn't have any effects. And these are markets, we know that there is not going to be any change as of today. So as of now, we are not impacted anything on the price variations because we are strategically, even if you see in the earlier three quarter calls also we made very clear.

46:36 We normally inventory and the dollar as well the the procurement of material based around our... The inflows of orders. Mhmm. Okay. Thank you so much. I hope we can connect offline as well because, yeah, I'm here looking at this company. Yeah. Thanks thanks for the opportunity. I'll I'll I'll connect offline. Thank you. Ladies and gentlemen, we'll be taking one more question for today from from Access Mutual Fund. Please go ahead. Thank you, sir, for the opportunity. I just had one question. So you did did elaborate on how the margins are split. But just for my understanding, let's say, if you produce and sell sell itself separately, how much margins will you make there?

47:28 Let's say, second case, which is you produce the cell, you convert it to modules as well, how much are the margins there? And third is, of course, a non DCR, wherein you buy cells from, let's say, China and then you convert it to modules and sell it. So what will be the margins in each of these three cases? Yeah. Thank you, sir, for the question. So sell... Sir, like like we said, non DCR module is about $2.2.5 rupees per watt. And so... And then the sell is about 6.5 rupees per watt. So BCR module is usually, like, you know, 8.5 to 9 rupees per watt. So that's pretty much like, you know, you either sell separately or you sell together. It's pretty much similar kind of margins. Understood, sir. Very clear. Thank you. Thank you. That was the last question for today.

48:16 Thank you, members of the management. Thank you once again for your time and participation. On behalf of MBE Photovoltaic Power Limited, this concludes today's conference. For any questions, please feel free to write on the email IDs mentioned on the invite. We appreciate your engagement. You may disconnect your lines now. Thank you so much, sir.