IRM Energy (NSE:IRMENERGY) Q1 2027 Earnings Call

0:00 Good afternoon, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to IRM Energy Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participants will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note this conference is being recorded. I would now like to hand over the floor to Ms. Krishna Patel from Thank you, and over to you, ma'am. Thank you, Akash, and good evening, everyone. A warm welcome to all participants joining the Q1 twenty seven earnings conference call of IRM Energy Limited. Joining us today from the management team are mister N. K. Sharma, the CEO mister Amitabh Banerjee, the executive director mister Rajesh Singh, COO mister Ashish Munishwari, director of finance Mr.

0:58 Arun Kumar Saduru, Chief Financial Officer and Mr. Abidhan Pandya, Chief Corporate Strategy and IR Head, who will discuss the company's operational financial performance for the quarter, address your questions thereon. Before we begin, I would like to remind you that certain statements made during this call may constitute forward looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please note the audio recording transcript of this call are the property of IRM Energy Limited, will not be copied, reproduced, rebroadcasted, redistributed in any form without the prior consent of the company. With this, I would like to now hand over the call to Mr. N. K. Sharma, the CEO, for his opening remarks. Thank you, and over to you, sir.

1:44 Thank you very much, Krishna, for the introduction, Akash and entire UI team. Good evening, everyone. On behalf of the entire IRM Energy team, I would like to thank you for joining us today as we discuss the company's performance of Q1 FY 'twenty seven, our operating progress across the geographical areas and their strategic priorities that will guide us through the remaining part of the year and onwards. You are aware that amidst the geopolitical developments in The Middle East Asia resulted which has resulted to elevated energy prices and volatility across the global gas market, Brent market, and everywhere.

2:31 We have been also impacted quite a bit. But despite all these challenges, IRM Energy Limited has successfully ensured uninterrupted supply across its operating geographical areas through prudent gas sourcing and operational agility. As supply conditions gradually normalize that we are very hopeful of soon, we remain confident in the stability in our ability to sustain the growth, supported by the strong balance sheet, expanding infrastructure network and diversified customer base. Despite the challenges during the quarter, I'm happy to share that IRM Energy has delivered highest ever quarterly revenue, EBITDA and the profitability.

3:26 During the quarter, our revenue from operations stood at INR $3.26 crore, registering a growth of 24% year on year and 17% quarter on quarter. EBITDA, excluding other income, increased sharply to INR 62 crore, reflecting a growth of 139% year on year, with EBITDA margin expanding to 19% of profit after tax, which stood at INR 34 crore rupees, which is up 140 percent year on year, with that margin improving to 10.5%. This is a double digit this time we have given.

4:12 This performance was driven by favorable pricing environment, sustained volume growth and the continued expansion of our infrastructure network across all the four GA. Our con... Our confident confidence is in the underlying growth opportunity remaining strong, and we continue to target a 20% to 25% revenue growth CAGR over the past over the next five years, An encouraging trend across four gs is growing adoption of CNG is growing on adoption of CNG VACIL. CNG accounts for about 15% of our VACIL sales in the Manascata and 60% in the VUNG, Somnath, GA.

5:06 Demonstrating this all has demonstrated strong market acceptance of our fuel. While penetration is lower at 15% in Meckel and Primali and 6% in Swasegars type, these regions saw substantial headroom for future growth as our network continues to get expanded in those two seasons. From an operational perspective, Q1 FY 'twenty seven was another quarter of steady progress. Our volumes reached an all time high of 50.9 mmfcm, growing 8% year on year. This was primarily driven by 10 growth in CNG volume That grew around 22% year on year and 7522% year on year and the strong momentum on CNG commercial volume, which grew 75% year on year.

6:10 This all has contributed 67% of the total volume during the quarter. While P and G contributed 33%, P and G industrial volume were impacted during the quarter following the government notification dated ninth March twenty sixth, which resulted into... In an... Around 80% reduction in the gas allocation amid the supply disruption arising out of the West Asia conflict. This certification was especially only for industrial supplies, not impacting CNG and PFG domestic areas and or even commercial areas. Our network expansion remains on track across all the licensed geographical areas.

6:58 As on thirtieth June two zero two six, we operated 153 India stations, and this this one one fifty three station is a 37% year on year growth in our station, supported by 564 dispensing points on those locations across our... All the four gs. Our changing station network has grown consistently over the years by our franchisees, Sodo, ONT and company operated model. We continue to deepen our P and G customer base during this quarter, like domestic P and G customers increased to 86,590 to be precise, commercial customers increased to five eighty nine and industrial customers stood in two twenty eight numbers.

7:58 This represents year on year growth of 13% in domestic customers, 36% in commercial customers and 5% on industrial customers. The growth in P and G connections demonstrates increasing customer acceptance cleaner, safer and more convenient fuel across households, commercial establishments and industrial users. At a geographical level, our portfolio continues to become more balanced and diversified. While Banascata remains a strong contributor, accounting for nearly 48% of our Q1 FY twenty twenty seven volume, while particular type contributed around and Namakal together contributed 20% of the volumes.

8:51 This Namakal Trijee Namakal GA will continue to scale up meaningfully as a newer geographical area as the infrastructure rollout is at a very advanced stage. During the quarter, we also made encouraging progress on institutional and commercial partnership. In Namakkal, we commenced CNG sales to TNCC, the Milano State Transport Corporation buses, with more than 80 buses currently operational. That way, we have got more orders, and shortly, we will be connecting more buses of Tamakkal and Treaty. They are going to assure us more than 200 buses in near future.

9:41 Similarly, for Pew, we have successfully converted the entire commercial segment of P and G. Now that, we can call you as a central directory both totally LPD free. And with there, we have got, all the commercial connections connected to PNG now. Further strength... This is... This has further strengthened our network reflection in that region. We also have signed up... Hook up arrangement with Indian and also with with that CSPP, GTPL, we can call it, in the due and is giving us, currently, we were drawing liquid from Charah Terminal from HP LNG. Now once this step off is connected, we'll be integrated with the national network, and we can have the swapping and other arrangements conveniently done.

10:42 So we would also like to convey that we have executed MOU with the government, Sanskrit University, and graphene industries for PNG supply and masks and also to their commercial kitchen. Our infrastructure development continues with discipline during the quarter. We have incurred CapEx of approximately 67 crore in one three month quarter in FY twenty seven this year, given FY twenty seven this year, taking our cumulative CapEx to around 1,090 in that range. With our total internal milestone and planned rollout strategy, We remain committed to investing into the infrastructure going forward also that enhances our network reach.

11:35 It improves the customer accessibility and support and sustainable volume growth. On IPO front, let me convey that IPO proceeds are being utilized. We have utilized almost INR $3.37 crores out of the total net proceeds of INR $4.96 crores as on 06/30/2026. This nearly represents 68% utilization. The balance amount is primarily a mark for the development of City Gas Distribution Network at Ramakal and Truchi GA. I'm also pleased to share that IRM Energy continues to strengthen its professional management team. During this quarter, we have reinforced our team and have appointed a seasoned industry leader to the key positions, including director of finance and chief operating officer, both of whom bring extensive experience from leading Indian conglomerates.

12:36 These strategic additions in the top management further enhances our leadership capabilities, strengthen our governance and position of the company well to execute in the next phase of our growth continuously with a greater scale efficiency and operational excellence. We, we like to continue our expanding the CNG network in the calibrated manner, aligned with the demand potential and station economics. We also, placed to drive deeper P and G penetration across domestic, commercial, and industrial, I mean, segment. As you know that P and G, domestic, is the buzzword in recent time. So our focus is that all the possible areas in our line and infrastructure is available, they must be connected with the help of OMCs getting their LPG connection surrendered so that our PNG drive takes it forward meaningfully and effectively profitably.

13:47 We also maintain financial discipline, prudent capital allocation and operational excellence across all four GAs and all the infrastructure are meaningfully decided with the returns expected returns of IRM. The long term fundamentals of the CGD sector remain effective. Natural gas continues to be the most important fuel of India supported by the policy focused rising customer... Urbanization and increasing preference for a cleaner energy solution. It's blocked PNG RV authorization across photographic areas, Going customer base, scalable network, and a strong balance sheet, IRM is well positioned now to participate.

14:44 We would like to once again thank everyone of you and would like moderator to please open the forum for question and answer session. Thank you very, very much for my patient listening. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. You may do so by pressing star and one again. The first question comes from the line of Mr. Kiran Gargi from Knightstone Capital Management LLP. Please go ahead, sir. Hello.

15:30 Hello. Hi. Good evening. So the EBITDA per SEM improved significantly. So I wanted to know if there were any one one time items? There were no one time...... Request... Yeah. This is Arun. I request I request Arun to please address it. It was not very audible to me. Yeah. So this is Arun. There were no one time items. Okay. Because the contribution per SEM improves significantly. That's why I was wondering if it is sustainable. So this quarter, the revenue has increased to, because of our optimization in the pricing as well as we have actively optimized our gas sourcing and OpEx. So... And there were variable variable factors in this quarter.

16:27 So all this has led to a higher contribution. And so for the outlook of FY '27, can we model this? Yeah. In in the FY '27, in the next three quarters, we expect EBITDA to be in the line of 7 to 8 rupees per SEM, operating EBITDA. And our revenue growth will be around 25%. That's what is... We expect. Okay. Thank you. Thank you, sir. The next question comes from the line of Mr. Nidesh Gogi from HDFC Securities. Please go ahead, Yeah.

17:18 Thanks. Thanks for giving me opportunity. A couple of questions from my side. Sir, can you tell us the sourcing mix for priority and non priority sector, APM and HPHT, and then reliance gain and other. So the... This quarter, if you see the APM and WG together were about 32%. HPST was around 35%, and the balance was the long term. Long term include the Reliance, Gain, and others? Yes. Other than Reliance and Gain.

18:06 Reliance and Gain. Okay. Sir, can you share the same number for the last quarter? Is it possible for you to share now? For the last year, the AP was 32... Quarter four. So first one is quarter one FY twenty six days. Number of APM was 27%. Long term sourcing was 27%, and SAC gate was 38%. So correspondingly, the long term... The RLNG and 30... Right now, 32%, which has been increased because of the budget sourcing with this long term partner, the ATM, it will remain within the range of 21 to 22%. Okay. And this is you... You are talking about the q one effort with this. Right? Yeah. Compared to compared to q one effort with this funding quarter. And what what are the same number for the q four FY 2022?

18:57 So four Yeah. It was so it was... APM was around 15%... Oh, sorry, 26%, where... Whereas, as of in quarter one, it's around 21%, and the long term sourcing was 40% to 32% for this quarter. As you, said that, Arun, Mr. Arun mentioned that for next three quarters, the EBITDA per SCM is guiding about 7 to eight per SCM. And this quarter, we reported about INR 10. So average, in earlier, communication, you mentioned that your average EBITDA per FCM will be in the range of INR 5.5 to INR 6 per FCM.

19:43 So so you indirectly, you are raising that number to, let's say, in the range of $6.06 to $6.07 rupees per FCM. Is my understanding correct for FY '27? Yes. It will be because of because of some of the fixed expenditure, which we are also doing some optimization. So, like, the... If you can see the fixed expenditure where we are... We have this 7.15 interest earning quarter per LCM, the fixed expenditure, whereas it is only 7.22. So they... One of the big contribute... Contributor for us for this quarter as well, and that that will even continue in the future as well. So that is also one of the things which can increase this EBITDA per SEM. Apart from that, there are some gain in terms of the pricing as well. So where we are at, we get we get benefit even everyone will get benefited for this pricing. So because of that, so our... Because of our gas strategy, we could not have too much increase in this gas, but then the price sales, think, it's increased.

20:40 So if it if it remains continue, then the EBITDA Centimeters would be around six to seven very minimum. But sir, if I look at this quarter's number, it seems that your CNG contribution has gone up significantly high if I compare last year, this quarter or maybe Q4 also because of the drop in the PNG industrial customers. The volume there has gone down because of the non availability, various reasons. And which we believe that P and G is the high, you can say, EBITDA contributor in terms of a per unit volume, whereas the IndustrialCommercial, the margins are very narrow.

21:29 So in next quarter or in the subsequent quarter, when your IndustrialCommercial volumes will be back on track, So still you will be confident that you will maintain that 7 to 8 rupees per SEM kind of EBITDA per SEM margin? You can you can keep around, 7 for the full year ended for this, 27. This Ashish, let me step in. Let me step in. I mean, Ashish, about you. Yes. We would be very candid with you. In fact, the sourcing is the key for our this good achievement. We can say that for industrial, we had had two long term contracts, one is the SPC, the other is the Shell.

22:19 So with these two sourcing, the pricing formula we had with the HPSP gases. So as you can understand that the spot prices were escalating somewhere hovering between $16 to $20 or minimum, it was $14 So in this full quarter, we could enjoy the HPSP rate, and that was around $9 So you can understand the margin had to be good. And going forward also, price, we are maintaining for the sake of industry survival also. And our gross margin also had been higher for that reason.

23:04 And that is one of the sourcing is one of the I mean, as it was the thing which has given us a better margin in SGMY. And going forward also, this HPSTE sourcing will continue up to March also. And one of the supply, it will continue up to January 28 also. So that way, we are confident that our sourcing team will contribute to our margin. And till such time, our competitors have not reduced the prices. We will keep the prices at that level only because not only competitors, but the alternate fuel prices are also at high level. So these are the prime reason that we are enjoying a better SEM margin.

23:55 I hope that clarifies you your queries in totality. Yes. Thanks, sir. Thanks, sir, Madhee. And as far as the yeah. Sorry. Go ahead, sir. Yeah. So, Nikesh, adding to what Sarmasar has told, you know, if you look at it, we are in that industry where we are not the price maker. We are the price taker. And based on our portfolio, which is clear, the price taker industry is able to match up with the price and make margins, and that's what has happened. Thank you. Okay. Yeah. Thanks. And, sir, just one question. While answering the question, Arun sir mentioned that top line growth of 25. Is it true for FY '27?

24:42 Yes. So Y o Y, it is 24%. It is Twenty four Twenty five... Okay. You are expecting 25% top line growth in FY twenty seven. Is that correct? So... Yes. Yes. So basis this is how it pans out now, this guidance, I'm telling from q one. But the basis this thing, you can take a range of around 20% onwards. 20% is the. And in that, can you split between volume and value? Is it possible? Volume and value is not possible, but volume wise, we expect around 10% to 12% kind of growth in volume.

25:32 Okay. Okay. Okay. Thanks. Thanks. Thank you. That's all from my side. Thank you so much, sir. The next question is from the line of Mr. Pawan from RT Capital. Please go ahead, sir. Sir, can you just outline what were the volumes at Namakal, and what is the volume growth that we are expecting this particular year? I am asking for q one, and what what do we excel? What are we targeting for FY twenty seven as a whole? So Namakal... In Namakal, in q one, we did the six MMSCM in q one. So, like, you see year on year year back, it was 2.84 and then the same quarter wise. So it is more than... Year on...

26:27 Yes. Sir? Hello? This quarter... Year on year, what was the process? Year on year, it is a 102%. Okay. And for FY '27, what are we expecting at Namakan? So it will be in the range of 25 to 30 MMSN. For the full year? Yes. And what what was this number, for the full year FY '26? For the full year FY '26, I'll just just... Okay. I will I will get back with that number.

27:19 Okay. And, also, I just wanted to check if the volumes are going significantly scale up in Namakal. Wouldn't that impact our EBITDA per SEM margins slightly negatively or am I overreacting it? No. EBITDA guidance we have given, so it will be around 7 rupees per SEM that you can take. Overall EBITDA guidance. And... Overall. Okay. Okay. Got it. Got it. Thanks. And you were asking for FY '26 volume, so it is... Yes. Yes. It's just 15.2 MLS. 14.2, is it?

28:05 14.2. Right? Yes. Yes. 14.2 MLS. Okay. And we are saying this year, we might end up somewhere between twenty five and thirty. Yes. Twenty five and thirty. That's the same position. It will be towards the 30 range only. Okay. And on Banskar Banskanta, which is our main, geography, are we still, looking at a double digit growth in terms of volumes? Yes. Yes. Okay, sir. Okay, mister. And thank you. Thanks. I'll get back to you. Thank you so much, sir. The next question comes from the line of Mr.

28:55 Abid Pandit from Old Bridge Mutual Fund. Please go ahead, sir. Hi, sir. Thanks for the call. Sir, just had two questions. Primarily, sir, can you just give a bifurcation of the source it works? If you have given it earlier, I apologize, but could you just help me on that? Yes. Yes. I will give you the bifurcation. Yes. I will give you the bifurcation. So, basically, APM and WG, it will be around 32% this quarter. HPST was around 35%, and the balance was RLNG and LNG. K. Fine. So so if if I see your realizations, right, your realizations quarter on quarter basis, As of the year on year basis, you have taken a 15% hike on a entire company level. Right? So is it... How how was it different across GAs and across the PNG aspect? Could you just help on that And even on the industrial aspect.

29:59 So if I can I can make you understand by that the contribution to the profitability, if I say Mhmm? Will be 46% has contributed to the profitability. But I guess I have 38%. You will around eight, 9%, and number of country around 5%. Okay. Okay. Okay. Okay. So so I... Are you saying, basically, that you have taken the entire price hike, or you you want to take another price hikes going ahead, in view of the fact that, this gas, aspect remains an, undecided issue. So how are you planning on this? In fact, the price hikes are always linked to the sourcing.

30:51 And Okay. As of now as of now, since the brand has also started cooling down, we we will not to pass on and spoil our upcoming market by making you another price hike. But at the same time at the same time, whatever we have been able to take from market, particularly industrial volumes and all that, that we will continue for some time because, you see, the pricing formula of sourcing is so that it doesn't get reflected in the same very month. It is three months average or one month average or something of that sort or average of the dollar rupee conversion also. So that way, it is still there for some time. So price hike, you can make it immediate.

31:38 It's actually immediate. But the sourcing, the thing is still somewhere for two months, three months or something like that. So price reduction, at least we are not at all in a in a in a position or in a mood to do. Till such time, we've printed it like that. Okay. Perfect. So my next question is related to what is the amount of CapEx that you are looking at in FY, '27? FY '27, we have plan of 150 crore rupees, and and, we have... We don't target more than that. And then INR 50 crore rupees will be investing in NT alone out of the IPO proceed, which we are carrying. And for the remaining two in in in the DBS Sonar, we have got a tap off from, you know, GSTL.

32:28 So that tap off will also be one. And in BK, we are further reinforcing, making our stations online from the daughter booster station and domestic fronts are opening up also. So another $50.50 crore rupees we have planned in BK, 50 crore rupees., making it to another 50. So 250 crore rupees CapEx we have allocated to be spent in the remaining three plus more. Okay. Perfect. Okay. Fine. Sir, just on the f y twenty seven plan, so you currently have increased by almost... I mean, you have one fifty CNG stations. So so what would be the plan for f y twenty seven? And how much would be in Namakal and Titi, and how much will be in Banas Kantar?

33:14 Banas Kantar, actually, is almost, like, saturating. So what we have standardized that around 10 to 15 stations only. Last year, we had had a good number there. At this time, we we would like that... Let our dealers stabilize and capitalize on their volumes. So Mhmm. We are not adding much. We will be in the range of 10 to 15 only in Banas Gata, although that is a CNG hub for us. And the profit builder also is in Banas Gata, but let the dealer also, I mean, seek the taste of higher volume. And in remaining two, Namakkal and Kuchi, we are accounting more for, Cocoa location.

33:59 But, unfortunately, land prices and other things are discouraging. So mostly collocated with empty, we are going. So we'll be doing around 15 to 17 stations this year in Namakalam, 55 around in and only two in. Okay. Okay. Okay. Okay. Fine. Sir, just one more question related to the NGT aspect in. Is it been resolved and have volume started kicking in on... Or how are you looking at the process there as to when the volume shall ramp up again in for the third side? That's very, very... I mean, sensible question we have asked, actually.

34:48 This is something which is bothering everybody. What has happened, NGT has given a February order in the month of late February. But at the same time, I mean, the war also broke out. So March 9, following month only, before things could happen... Taken convictions off, immediately, the the supply cut started. So Mhmm. So, actually, we we could not take much advantage of the NGT order by, I mean, by enforcing the Punjab government or the PPCB, Punjab Pollution Control Board. So... Because we were already part of the, I mean, sufficient supply, only 80% we were having.

35:34 But Mhmm. At the same time, the current, government is undergoing election. So I have hopes that they will not be very, very, what you call, aggressive in implementing the NGT order. But even if they don't do, there is a natural growth already happening that side, and, we are in a position to add more industries. More industries are coming, which are currently at least the impact of NGT already so that CPE and CTO, the consent to operate and consent to establish is not being granted to any newer industries which are not on natural gas. So that is a upstarting volume. Once the NGT is fully implemented, we are sure that volume will ramp up, I mean, nicely.

36:30 Okay. Perfect. Perfect. Okay. Thank you, sir. That's all from my side. Thank you. Thank you so much, The next question comes from the line of Mr. Saket Kapoor from Kapoor and Co. Please go ahead sir. Mr. Saket Kapur, please go ahead with your question, sir. Hello. Yeah. Hello. Hope I'm working. Thanks. Yeah. Yeah. Yeah. Please. Yeah. Namaskar, sir. Namaskar, Namaskar, CFO, and committee executive and other dignitaries present. Sir, I joined very late in the call. Sorry for any questions that have been answered.

37:15 Sir, but the sustainable EBITDA margin, if you could just explain to us what are the key factors that has actually contributed to these enhanced margin and whether those factors are in continuity or there was something one off that has wherein we have expanded because revenue EBITDA growth No, no, Bill, Bill, Saket, you are never late. You are always in time, and your questions are very nicely drafted. I I can only say you, although you may have missed our clarifications in past questions. But we'd like to say that as you said, our sourcing has been responsible for giving us a better gross margin.

38:03 And, of course, our tight operating cost, management has yielded into this kind of cut, currently, higher SEM per... EBITDA per SEM. You... We were just mentioning, the cost of repetition. I would like to say that our sourcing is on a HPHT basis even for industrial volumes. That is tied up long term contract for five years up to two zero three zero. We have got this volume done in '25, April 25 with GSTC and Shell. So with that contractual obligation, we enjoy a restricted price of $9. And of course, as per market dynamics and the competitors, I mean, pricing, we stand in an advantageous position, not only in quarter one, quarter two, quarter three also. Till such time, the prices have stabilized, we are not forced to reduce the prices and industry volume doesn't decline because of the higher price consumption, because of the alternate fuel and all such things.

39:10 Our EBITDA per SEM will continue for at least one or two more quarters. And in the meanwhile, the NGT orders have come that will help us to maintain a higher volume growth in the industrial sector. So we assume that this year onwards, I mean, this quarter onwards, we should be in a position to, I mean, give better results Q on Q and Y and I. Okay. So to conclude this EBITDA margin closer to 19% is a good sustainable number for the ensuing quarters also. This much understanding we can take home. We hope pray, but we can't guarantee 19% always.

39:55 Not always, but it is in the bank, sir. From 10% to 19 is a big number. But to maintain it to 19 or 17, 16 is also a big number. So only one should invest a model. Yes, sir. Yes. The second thing I mean, rest assured that our efforts are on, but, 2019 may not be a fact going forward, but it will be better than 2019. Somewhere, we will land in between. Figures are very difficult to say at this moment. Okay. And so then pertaining to the opportunity at Namakkal and the efforts done, I think so that tie up with Tamil Nadu birth authority also. How what exactly are we eyeing as a contribution from the GA going forward? And what kind of further CapEx are anticipated?

40:49 It will be done for this year? Yes. We have mentioned here just now that CapEx of 150 crore rupees plus will be allocated only for Namakal and Gucci because infra is at the rollout stage, and we'll be we'll be we'll be, I mean, meet... Meeting that target actually in the in in the local entity that way. So so so with regard to volumes, as you had said... Mentioned that Tamil Nadu State Transport Corporation tie up has happened. So furthermore, another 50 to 100 buses they are going to convert into CNG or some... But they are buying also. I mean, 80% buses are new buses, 20, 3030% are retrofitted buses.

41:36 So we have opened our dispensing facility in their depot itself. So that then we don't go here and there. We have fast charge... Fast fueling dispensers we have installed. And there, this volume will go on increasing. And you understand that CNG is a profit builder for any of the CBD company, volume builder also, so that will continue. Number two, as regards CapEx is concerned as regards CapEx is concerned, CapEx, will, be prerequisite for any future growth. So we are trying to aggressively invest the IPO money as well as our clawback profit money also in rollout of higher infrastructure so that more and more domestic and industrial customers are also attracted towards us besides the CNG sector.

42:32 So, that will also help us making many of our CNG station online in place of currently... We are operating through two model. One is daughter booster model. The second is LKG model. Both the models are less profitable than the online station model. So our CapEx are having multiple aims. One is that our operational cost of supplying feeding gas to all the ROs should be lower. Secondly, infra will help us in expanding the government's push also for more and more domestic connection and commercial because of LPG's crisis. The commercials are also beelining us for connections.

43:17 That is another attractive market, which will help us. And of course, industrial, we have yet to catch many potential industries there. That side, ZIP code is one area where the industrial industrial city is there, industrial town is there. We are trying to reach that site so that many more customers are feeded through our natural gas. So Namakkal and Trichi is our aspirational GA, wherein through CapEx and our meticulous rollout of the routes, we are trying to build the volume. It may take one or two year time, but, that should be one of the pride, GFR. That is what we can conclude for you. Right. Two small points. Firstly, on the volume growth.

44:03 So taking into account how we have done performed in the... On the volume front and the factors that have led to it. Where do we see our volume growing in the entering part of the financial year? And sir, then in your IRM business and financial update, you mentioned about this successfully completed full conversion of commercial customer base in due to P and G, advancing clean energy penetration across the license area. So the benefit of this and how will this will be a margin accretive step or if you could explain these two points? I will tell you, though, in view, you know, a small Nagua Beach is there. That beach is having more than around 250 commercial installation, hotels, small huts, and the picnic hubs and all that. So now that Nagwa Beach is completely fed by our natural gas because of the compulsion, you can say, that LPG was in scarce supply.

45:03 And we had already... Through Wyatt Creek, we had already leased to that island. And now everyone is now connected. By the end of July, not a single one will be left, I believe. And, they are connected, and volume is going to grow replacing entire HPG. This is what is the deal story. Okay. And what is the monthly revenue run rate? Average one? Overall. No.. My finance team will precisely tell you, sir. I said the volume growth anticipate going ahead. Volume to nine to 10% compared to the previous year, and we're expecting around... To be growing around two fifteen MMXEON by the end of this year on the entire go to deliver.

46:02 Sir, can you come again, sir? I'm not able to hear you. So volume growth, we expect minimum around 10%. So last year, we clocked two twenty four MMSCM. So we expect that it will be in the range of two fifty MMSCM by the year end... The full year. Okay. Not that around Yeah. Yeah. Actually, year in... To go 80% Actually, government has lifted this. And now from the July 4, they have lifted this embargo that notification give only 80% has to be supplied. But actually, from supplier side all... Also, the force measures are being invoked because you all know through news news news coverage that harmless is one bottleneck.

46:55 The other route, which was happening from Saudi Arabia side, that is also because of war, has expanded to that region. So it remains in limitation. So because of, I mean, this supply constraint, volume growth is, I mean, not predictable, to be precise. This 02/24, which we are telling, would have been more than two seventy, two sixty around. But because of the constraints, uncertainty exists. So we precisely only constraint our growth at 10% level currently. Correct. Correct. That's On the volume on the volume. On the volume. And, sir, on the on the sourcing part, we have we have increasing, the number of sources and the dependent part so that the... We have, we have mapped out our sourcing for the for the remaining part of the year, to a... In a meaningful manner.

47:51 Yeah. Yes. Saket, again, I am repeating since you were not there in earlier communication. APM is 21% as you understand. The balance is... As I said through NWG, you will get 11%. So this all makes 33%. HPST volume, which we have tied up, no, that is 35% of our total value... Volume. So CBD branding also happens to 1%, and long term is 32%. So you can appreciate that on a spot, we are hardly forced to, arrange our supplies to the extent of only 1%. So almost all is either through IGX or through a preferential allocation of, I mean, APM, SPST, our portfolio remains very much sound enough.

48:42 And, for only, I mean, Namakkal and Kuchi, which is not linked to the national grid, we need to depend heavily upon Indian oil corporations and no terminal and slightly to some extent Kerala's, Kochi terminal. So these two terminals are helping us out for feeding our growth through liquid because gas tap off is is still not in a high potential. Gale line is coming in. IOCs, one more line is hot tapping. We have... I mean, as we have station, we have arranged. But all that will take at least one and a half year, one year, nine months. That's one of our vision is there. Till such time, some spot volume viewed arranged from Indian oil or from, BPCL or, the PLL, these kind of sources from Cochin.

49:40 So that only will go for spot sort of arrangement or short terms, you can call it better. Otherwise, our sourcing portfolio is robust enough to take care of my ongoing demand. Yes. Even the long terms are ramped up in such a manner that, after six months, we have a higher volume tied up, and another after six months, volume tied up, which is matching to the growth which we had anticipated in two thousand twenty four, twenty five. So things are not out of hand, and the spot reliability is leased. Okay, sir. Thank thank you for all the elaborate answer. Only through the point of, our, payment of commission to the promoter, there were also some discretion by the minority shareholder and the shareholder community of whether we are putting any ceiling or whether the promoters are considering the request from shifting from a percentage to an absolute number. So please This is exactly...

50:54 First of all, no commission. This is a license fee which has been arranged, well declared in a IPO document also, and that 2% goes to them. And that is what is the... For clarity purpose and all that, the the the, I mean, CSR purpose, it goes. And it is not sort of profiting to any of the promoter, well declared in IPO document. And that is consistently going. And as of now, I can't promise you whether this will continue at a reduced rate or same rate or maybe abolished altogether. But in spite, with or without this kind of license fee, we are growing that much as a management. We can assure you a lot.

51:40 And, we can only say that we are committed to my all investors, stakeholders, shareholder for giving better and better performance. This, whole year is around $20.25 crore rupees which goes to them. So you can discount that, which is already accounted for in my patch this quarter and going forward also. This is already accounted for and discounted for. Right. I should be should be happy with the path at least here. At least, Yes, sir. I am... Sir, I'm very very... Positively surprised by our by our numbers. The... That is one of reason I'm asking... I was, trying to incline to get a sense whether on on on a higher base, are we in a position to to even match these these performance for the issuing part of the year?

52:29 Because that would be a commendable job to to contain to contain these these numbers going ahead. So... And then the team has done a remarkable job. Yeah., it'll be highly, I mean, optimistic to say that same performance as Telesopfizer q one will be repeated every quarter. We'll end the one... But, it will be definitely subdued going forward, not update this exchange. But my request is that at least enhance your stakeholder. We find that this is. It's the last one I missed. This was on a lighter side. Anyway, please please go ahead. No. That's... Thank you for for, all your comments, and, best of luck to the team. Thank you, mister, Asit Bai and other members of the team.

53:17 My best wishes to everybody. Thank you. Thank you, sir. Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. The next question is from the line of Mr. Mahesh Tulsani from Gokakwatta. Please go ahead, sir. Mister Mahesh Parani, please go ahead with this question, sir. There is no response from mister Mahesh. There are no further questions, sir. Now I hand over the floor to the management for closing comments.

54:18 Thank you very much, Akash. I hope that we have been able to answer more clearly, lucidly, frankly, and with full transparency all the questions of the investors. I would like to formally now, based on record, thank you all for joining us today and for the active participation in our q one FY 'twenty seven earnings conference call. On behalf of the entire IRM management team, I would like to express my sincere thanks and gratitude to all our shareholders, investors, analysts, business partners for their continued trust and support, they have reposed on us time and again.

55:03 And we hope that we have been able to address your key questions and provide cleaner perspective on the IRM's performance. Should you have any other further questions, please feel free to contact us on our Investor Relations Advisor through our Investor Relations Advisor, E and Y, and we will be happy to assist you. Rather, we are also quite often trying to interact all of you. And in person, also, we, I mean, more than happy to give any sort of clarification. Thanks you all. Thanks to Krishna, Akash, UI team for the successful conduct of this meeting. Thanks to my team also who has been, shoulder to shoulder working very hard for giving better and better results going forward. Thanks a lot to everybody.

55:54 Thank you so much, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of we thank you for your participation. You may disconnect your lines now. Thank you, and have a pleasant day.