IRM Energy (NSE:IRMENERGY) Q2 2027 Earnings Call

0:00 Good morning, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to IRM Energy Limited q two f y twenty seven earnings conference call. As a reminder, all participants will be in listen only mode, and there'll 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 and then 0 on a touch tone telephone. Please note this conference is being recorded. I would now like to hand over the floor to miss Krishna Patel from Thank you, and over to you, ma'am. Thank you, Akash, and good morning, everyone. A warm welcome to all participants joining the q two FY twenty seven earnings conference call of IRM Energy Limited. Joining with us today from the management team are Mr. Amitabh Banerjee, the Executive Director Mr.

0:47 N. K. Sharma, the Chief Executive Officer Mr. Brijesh Singh, the Chief Operating Officer Mr. Ashish Maheshwari, Director CFO Mr. Agunan Pandya, the Chief Corporate Strategy and IR Head and Mr. Arun Kumar Saluri, who will discuss the company's operational and financial performance for the quarter and address your questions thereafter. 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 subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please also note that the audio recording and the transcript of this call are the property of IRM Energy Limited may not be copied, reproduced, rebroadcasted, redistributed in any form without the company's prior written consent. With this, I would like to hand over the call to the CEO for his opening remarks. Thank you, and over to you, sir.

1:45 Yeah. Thank you very much, Krishna, for the introduction. Good morning, everyone. On behalf of IRM Energy Limited, I welcome you all to our warming... Earning call conference call to discuss the company's performance for the second quarter and half year ended 09/30/2026. Our board meeting was held on October 30. I hope you have had an opportunity to review the financial results, investors presentation, and other disclosures submitted to the stock exchanges. Dear investors, during h one f y twenty seven, the company delivered healthy volume growth, a substantial improvement in the profitability, continued expansion of infrastructure, and further strengthening of the balance sheet.

2:41 Growth in the CNG and commercial PNG more than offsetted the softness of the industrial PNG volumes, They improved improved sales mix rather. I mean, the disciplined gas sourcing and operating leverage from our expanding network support have granted us a strong year on year improvement in the earnings. For h one FY twenty seven, revenue from operations have increased by 26% year on year to rupees 660 crore. EBITDA increased by 108% to $10.09 crore, while profit after tax increased by 124% to 59 crore. This is one of the best h one we have had in our history.

3:34 The EBITDA margin expanded by six forty six basis points to 16.5%, while the PAT improved... PAT margin also improved by 391 basis point to 9%. Our network expansion, as we remember that we are the intra company and our network expansion is the core, continued during h one FY twenty seven with the CNG stations increasing 34% year on year to one fifty six and dispensing points increased by 36% to five seventy six. CNG network has grown six years CAGR of 28%. I mean, MDPP pipeline network increased by 20% to 7,313 kilometer.

4:25 Steel pipeline network also increased by 17% now to 3,441 each kilometers. The domestic, commercial, and industrial PNG connections also grew by 14%, 48%, and 8% respectively, and strengthening our platform for future growth. In... I'm happy to share that in h one FY twenty seven, Manascata GA accounted for approximately 47% of our total volume, pathinger's lab, 33%, and dulgi somnath, 9%, where the Namakkal and twitchy, 11%. This contribution from Namakkal and twitchy has increased from approximately 6% by two... The total... From the total volume of FY twenty six to 11% now in this h one FY twenty seven. This reflects the progressive monetization of the network which we are building there.

5:26 During the quarter, we entered into a MOU with Tamil Nadu State Transport Corporation. We have mentioned this in the last call also. And now for captive CNG dispensing facility in NT, we have created recurring... I mean, supplies to them and also creating a recurring institutional demand base there in MT. We facilitated the conversion of 83 TNSTC buses to CNG, taking the CNG fleet to one eighty three buses in Namakkul and 55 buses in Kusiripali. We have also strengthened the gas sourcing and connectivity arrangements through a strategic hookup with IOCL in NT and GTN in BUG in Somnath.

6:11 These agreements are in final stage. I mean, these agreements have been done, and connectivity works had already started now. These arrangements are intended to improve the supply reliability and support to the long term development of the respective geographical area in the national grid. During FY '27... I mean, q two FY twenty seven, total sales volume reached all time high to 61.23 mmHCM, up by 12% year on year, while the actual FY duration volume grew by 10% to 120.16 mmHCM. Growth was primarily driven by CNG and commercial CNG, which grew 2361% respectively during h one FY twenty seven.

7:00 CNG now accounts for approximately 66% of our total overall volume and strengthening our sales mix, While industrial PNG volumes remained impacted by relative fuel economics, we saw the sequential recovery during q two and remain focused on improving our competitiveness through optimizing gas sourcing and industrial customer engagement because the alternate fuel is also a challenge for us there. On gas sourcing front, our position remained stable throughout the q two FY twenty seven with spot gas accounting for only around point 5% of our total requirement. This speaks volumes of our our strategic gas gas sourcing.

7:49 However, the revised s t... SPST allocation methodology by the government of India introduced in September resulted in a temporary reduction in gas availability towards the beginning of q three. This has affected our volume for approximately a fortnight only. We responded by further diversifying our sourcing portfolio, including a long term agreement with Gale and also asking calibrated price thing action to manage higher gas costs. Some Brentlink and some HPSP, we have had the mix with them, and this will be able to make up our gap requirement to a great extent. Importantly, the government subsequently introduced a phased implementation of the revised SPSP methodology in October, rectifying the September circular and providing CGB companies additional time to realign their sourcing strategies.

8:47 While the temporary disruption in the gas allocation, the higher gas cost might incur slightly, and this will have only some impact in q three FY twenty seven going forward. We believe that our focus and strengthen the sourcing arrangements position us better going forward in q three and q four, hopefully. Near end guidance also, we'd like to mention to all of you. Looking ahead, given the evolving regulatory environment and continued geopolitical and uncertainty in West Asia, we also can't remain fully immune, but we expect the operating environment to remain... I mean I mean, at the same time, operating environment to remain little uncertain during h two FY twenty seven also.

9:38 As mentioned earlier, we expect some impact going forward from the temporary gas supply disruption to be reflected in q three of y twenty seven. This... We hope that if the geopolitical situation smoothens, then maybe may be made up. But as of now, we need to be cautious of the same. As we move into h two f y twenty seven, our priorities remain very, very clear that we need to have full focus on efficient and diversified gas sourcing, the accelerating volume growth also in all segments all segments, ramping up infrastructure in the Namaskar land, which is wherein the massive CapEx work is going on already.

10:28 Delivering our stated CapEx plan as per our IPO plan also and as per our initially slated strategic plan also. Also, we would like to also say the focus area remains in selectively evaluating acquisition and diversification opportunities across the energy landscape. We will pursue other... These priorities also, I mean, while maintaining capital discipline and balance sheet strength. Overall, we remain mindful, the management team in the in the in the near term uncertain... Of the near term uncertainties. And we are also confident that IRM Energy's long term growth prospects remain fully focused, and we we we we assure you for delivering sustainable growth and creating a long term value for all our stakeholders.

11:22 With this, I conclude my opening remarks and hand over the call to the CFO who will take you through the financial performance also. Thank you so much for your patient listening. I'm always available for all of you for any sort of clarification. Thank you. Thank you, sir. Thank you, sir. So this is Ashish Maheshwari, chief financial officer of IRM Energy. Good morning, everyone. So let me briefly take you through the financial performance of IRM Energy for the second quarter and first half of FY twenty seven. During quarter two FY twenty seven, our stand alone revenue from operations, net of excess duty, has increased by 29% year on year to INR $3.34 crore. It is supported by the healthy volume growth and an improved sales mix.

12:15 EBITDA, excluding other income, grew by 77% to INR47 crores, while EBITDA margins are also expanded by three eighty eight basis points to 14.2%. Profit after tax is also more than doubled in this quarter to INR26 crores, with a better margin is also improved to 7.7. On a sequential basis, EBITDA moderated from INR 62 crore in Q1 FY twenty seven, primarily reflecting change in the gas sourcing cost and allocation, along with the impact of currency movement. Even with this moderation, Q2 profitability remained significantly stronger on a Y o Y basis, with EBITDA per SEM increased to 7.73 from 4.89 in Q2 FY twenty six.

13:04 For half year, first half year FY twenty seven, our revenue from operations grew by 26% to INR $6.60 crores, whereas EBITDA is also more than double to $20.09 crores, and EBITDA margins are also expanded by approximately six forty eight basis points to 16.5%. PAT is also increased in H1 FY27 by 111% to INR 60 crores with a PAT margin improved to 9%. In the balance sheet side, we had remained around the stronger position. As of September 26, the total debt stood at approximately only rupees 45 crore against cash bank balance and mutual fund investment of available fund of rupees 253 crore, which is getting into the net debt free position as of today.

13:56 Our net worth has increased to approximately 1,050 crore, providing a sufficient financial flexibility to support our ongoing network expansion, while our strong credit profile is reflected in the rating of AA- stable and in the one plus along with the CECL AA-one stable. With respect to the IPO proceeds, Rs. $4.96 crore was received against the stated object of the issue. As of September thirty two... Two zero two six, rupees 358.68 crore had been utilized, including rupees $1.70.18 crore towards the development of the city gas distribution network in the empty area, rupees 135 crores towards the repayment of the borrowing, and rupees 53.5 g crores towards general corporate purpose.

14:43 An amount of approximately rupees $1.37.08 crores remains to be utilized towards the development of the Namakalan Tiruchirapalli network. As CEO sir said, going forward, our focus will remain on disciplined gas sourcing, cost management, improving infrastructure, utilization, and maintaining a prudent balance between growth investment and returns. With this, I conclude my remarks and hand the call back to the moderator for the question and answer session. Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing 1 again.

15:30 Ladies and gentlemen, if you have any questions, please press 1 on a telephone keypad. Let's wait for a moment until the question queue assembles. The first question comes from the line of mister Moksha Ranka from IRM Energy. Please go ahead, sir. Yes, sir. Sir, I wanted to ask if there is any rethink on the loyalty loyalty being paid to the promoters. Is there any... Like, are we comfortable with the current arrangement? Yes. We are comfortable with the current arrangement. So as of as of now, the the royalty will remain continue and till the settlement will take till sometime again.

16:21 As of now, there is... As per the prospect that we had already declared into this IP prospect that will remain continue, and as of now, will remain continue for some longer time as well. Okay. Okay. Got it. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The next question comes from Mr. Kiran Gatke from Knightstone Capital. Please go ahead, sir. Hi. Good morning.

17:07 So I have a bunch of questions. For sourcing mix of the company as a whole, could you provide the mix in percentage between APM, new well gas, HPHT, long term RLNG and spot spot here mentioned 0.5%, but the rest of the mix? Yeah. So in in quarter two, the approximately APM on the portfolio basis is around 21%. The the new oil gas is around 13%. HPST, we have utilized... We have taken around 33% on the overall portfolio basis. LNG, is around 20... 30%, and remaining one to 2% is on the export basis. Okay. And the cost per MMBtu for each one of them?

17:57 So the average would be around 9.5. Okay. If you could split it between APM, UL, HPHT, long term RLNG, spot. So ABM, as you know... As you are aware about this, ABM is on the cap at 7. So we are we are availing on the same cap at the $7 MMBtu. There's new wealth gas... NWG also, again, linked to this ABM. So we have done at around 10.2. This HBST is again... It it is a subsidized cost available into the market... Public data available. This is around 8.9. And LNG or RLNG is between the 11 to $12 MMBtu. Okay. And if you can provide, the update on implementation of n g... NGT order for particular side.

18:55 Yeah. So if you look at the NJP order, it came in third of us in the month of February. It was February 25, and the NJP has guided to the Punjab pollution control board to implement it effectively. So we are in constant touch with the local pollution control board for its implementation. Okay. And there has been increase in other expense excluding the royalty. So can we take that as a run rate going forward, and what has led to the increase? So the expense includes the royalty as well. So that will remain continue. It is the 2% on the revenue from operations. That will remain continue for some time. So we will we will discuss and further come back to you if anything.

19:46 I mean, excluding the other excluding the royalty, the other expense has increased. So what has led to this increase, and can we expect this run rate going forward? So the expense had... I I I was just coming on the same way because most of the content have been most of the content have been... Like, the period of the one year or two year was gone in this quarter two. So it was renewed for the... From a escalation course. So the run rate... On the run rate basis, this excess will remain continue on the same rate at least for a year. Okay. And now now it's We can add some We we can, yeah, we can add on to this other. See, if we see our operations are, like, see, you know, see, you try getting late source and appreciation and other things will also going forward will be higher. We are trying to commensurately tie in more customers in the investor segment also, and CNG is a healthy growth through TMCC and other, know, the sales also promotional teams are going on. So some impact you are finding, but going forward, this will be, I mean, more fruitful for us going forward.

21:05 So that is not a point of much of worry. I think this will be smoothened from the higher, I mean, denominator effect. Based on the volume, we'll come up and compensate our per SEM contribution of this. Yes. Yes. Got it. What Sarai said, you know, whenever a GA is in the maturity phase and it's about to mature, the initial expenses OpEx are higher compared to a mature GA. And that's why when the which is going to fire on the whole sites going forward, the initial OpEx is going to be higher till each of the CNG stations achieve its maturity stage. So that's why you will see a higher OpEx coming from upcoming GA like PG and Namaka.

21:56 Okay. Okay. Got it. And in the last quarter, you mentioned CAGR of 20 to 25% for the next five years. So how will the sourcing mix change during that time? Do we have enough long term agreements? Yeah. Yeah. --.. Please. No. As regards to concern for long term sourcing arrangements are concerned, we are always in lookout for commensurate cheaper gas sourcing. See, this is a bad time for going for long term because you see the volatility is so much so that if you enter into any long term, it will be a kind to the buying some sort of, you know, short term sort of course you will get. So it is better to take a pause, wait for another three, four months, six months, and then line up. Currently, we are only tied up up to 2,030.

23:01 The... Most of the arrangements which we have done through Shell Energy, Shell India, and also with GSTC. Currently, we have entered two more contracts with the Indian Oil Corporation and also with Gale. So these are giving us sufficient visibility up to two zero three zero. Our demands will not be dried and will not be compensated through much of spot purchases. But we are very hopeful going forward once more projects are completed in Henry Hub, Texas area and also the Qatar Energy's few projects are there and Adanor is also coming up in the projects. These are all impacted because of the current geopolitical tensions.

23:48 So once the rigidity comes, we expect that next six months it should come up. Then we will enter into more long term contract to provide the stability to the consumer prices. Currently, whatever external cost we have incurred, that is all getting passed on to the consumers, and consumers are accepting it without much of issues, except the industrial area, the suppliers side, where we have to very meticulously balance the demand and the supply. Also, was a curtailment in the supply side from HPSP sources gases there, but that has also been passed on through more than the NGO quantity and all that. The pricing structure we did it, so there's no impact on the company's profitability on that note.

24:39 Okay. Thank you. Thank you for answering all the questions patiently. All the best. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The next question comes from the line of mister Nilesh Gogi from HDFC Securities. Please go ahead, sir. Yes. Thanks a lot for the opportunity. Sir, my first question is on our CapEx plan. In our last call, you mentioned that about $500,000,000 of CapEx in next three quarters. So how much CapEx we have incurred in this quarter? I like you and Girish, first of all, us good coverage. Girish, you have been so kind of understanding us. So thank you very much. And as regards to our CapEx plan, overall company has taken up INR $2.50 crores to INR $2.60 crores to be spent in this financial year.

25:35 And we are already through and progressing well as planned. We may even surpass this plan, but we assure you that this is on track and will be met. Okay. And sir, for this quarter, how much you already spent? Or first half, how much CapEx you have done? CFO,. Total till till last one, we have incurred around INR 111 crores. I'll give you the breakdown on quarter on quarter. Okay. So, Nilesh, you can understand. The 7 we have already spent. There are bills in line. And accordingly, things will be... Mid twenty fifty will not be a issue for us.

26:23 Please, your question, 4,000 we have incurred in quarter one and 57,000 we have incurred in quarter two. Okay. Thanks. And sir, my second question is on the volume growth. So earlier, you mentioned that we are expecting about 12% volume growth this fiscal year. And on the margin side, you mentioned that EBITDA per SCM will be in the range of INR 7 to 8. So looking at the current or the quarterly numbers, will you still maintain this volume growth or you may expect some increase in the volume growth because once the industrial and commercial volumes start picking up? Ramesh, it's a very good question.

27:09 We keep revising our plan for growth as well as depending upon the profitability EBITDA concerns. So what you see there, we currently taking higher growth plans at lower margin is not an optimized cost benefit currently. So even if we have to revise it by a few basis points like 50 to 100 basis points, we would not mind till such time, it does not impact our overall EBITDA contribution, SCM contribution, gross margin. And, you know, currently, the volatility is to the extent that sometimes the spot prices spikes up to twenty nine, thirty, thirty two dollar per year and between also. It drops down to $1,920.24.

27:57 So in such volatility, whatever is spot on the very short term sort of or for what you call material balancing purposes, whatever deficit quantity we are buying on the spot basis, that is impacting our overall sourcing cost also. So if you just think of growth only without bothering for the EBITDA contribution, and it is not good for the company. So from that angle, we keep on tuning it. As of now, we don't expect this to surpass what we said to you earlier. There there is some slight moderation in the volume, but profit share, it will be a good contribution beyond your expectation. Q three will be not as good as you can expect the sequential performance to go on. But, again, in q four, we will match up. So h one and h two taken together should give you a reasonably good good scenario going forward.

29:05 Okay. I hope so. I I Hello? Yeah. Yeah. Yeah. Yeah. Yeah. Said, the promoter's focus is mainly remain, you know, on securing sustainable volumes rather than pursuing growth at the expense of sustainability. And for us, growth must be profitable, cost efficient, and sustainable, and that's what the guidance for the near future is there. Yeah. And, sir, in this quarter, our spot is around less than 1%, but our raw material cost has gone up about 1.2 rupees per SCM. Any specific sourcing item that has led to this such a kind of raw material increase?

29:57 You see, in spite of government's notification that there should not be any such element to CMG and PNG sector. Government themselves reduced the HPHTL efficient formula. See, I mean, whatever we were getting, that was benefiting to a smaller companies like IRM or those who are h four five g a company or less than 10 g a company. But that new notification which came in September skewed it towards the benefit of larger companies like IGL, MDL, and all that. Government subsequently rectified this and brought it to 50% level... 80, 20% level of that impact of the notification. So when you see in the gas allocation on the free market has impacted slightly.

30:47 Secondly, you can see the Brent is skyrocketing. So Brent has also given a adverse impact. And even till such time, IR did not intervene for AMC dollar allocation. The... I mean, dollar was also unfavorable to us. This has given some impact, but still, I can tell you, situation is not out of control. We are trying to particularly address all these volatilities in the favor of shareholders. Sir, why you see... Say say that quarter three will not be that much... I mean, the one or sequential business good. I mean, what what are the reasons? See, you can understand that Brent's formulation, the billing of GAIL, the FCC, Shell, IOC, sometimes, you know, the average of three years spread...

31:41 Dated Brent. So that impact is spilled over to the subsequent quarters also. That can be one, again, you can say. Secondly, when our demand is going in the sectors of Namakkal and Kichi, so there's a gas connectivity is not there, so we have to heavily depend upon Indian oil corporations because Gale projects is getting delayed. So IOC IOC is allocation. Secondly, from Gucci also, BPCL and Gale is giving giving some allocation to us. So all that allocation is coming at a little higher cost because they also want to make money in the... This thing. But they are all short term. We are not entering at this volatile and higher prices, any long term engagement with them. So we are also cautiously breathing low and let them also assess the situation. They will come forward.

32:47 Okay. Sir, just last question. Have you taken any price hike till date in quarter three? Oh, wonderful. I mean, all positions, wherever our margins are to be protected, we have passed it on to the customers. As I said in the beginning also, so consumers have absorbed it willfully, understanding fully well because LPG prices have not stabilized. That is on a higher trend only, spiking every one month, two months. Secondly secondly, even even other alternate fuel, FO and all that is also not in favor of alternate fuel. So people have trust that natural gas will be addressed positively.

33:36 So, I mean, I can say that things will be better. This is a temporary phase we are breathing if we are proven wrong and this whole thing continues for another six months, the wildlife situation, then only things will be worse. And if it may worse, it will be worse for all the community sector, not IRM alone. Okay. Okay. Thank you. Thank you, sir, for answering all my question patiently, and all the best. And and wish you a happy Diwali to all to all of you. Thank you. Thank you. Thank you, Nilesh, for your kind questions. Very accurate question. Thank you very much. Happy Diwali to you too. Yeah. Thanks.

34:23 Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. I repeat, if you have any questions, please press star and one on a telephone keypad. The next question is from mister Prashant Shah. Please go ahead with your question, sir. Hello. Thanks for the opportunity. Is my voice audible? Yes. It is, sir. Yeah. So I have a just one question. Your average debt, see, the debt is on March 31 and September 30 is around 70 crores. And so I presume your annual debt will also be around that level, but your interest cost annualized works out to around 14 to 15 crores.

35:13 So percentage wise, numb... I mean, the interest rate percentage wise is... I mean, the number looks high. Can you explain, I mean, what will be your normalized cost of funds and what other line items would be there in this borrowing cost? Right. As of today, our debt position is in our books is only 45 crore. The gross debt would be around 45 crore. And this, if you can see the original. So for six months, we have... The interest finance cost is around 6 crore. Only $61.02 crore. Right? So that will that will win the... If you can just double it out, then it will be around 12 crore. So there there are two or three elements in this.

36:01 The one is the 45 crore interest cost, which is around seven to 8%, and another one is the bank guarantee. So we are also having a multiple bank guarantee, which we had given for the PNGRB. We are also providing to the... Taking the permissions and all for the local authority. So that bank guarantee is within the range of range of point five to point 6%. That also impacted with the PNL. So that is... If you can just see the breakout... The breakup of the whole thing for this March 26 as per the annual report, you can identify. So what is the actual interest for it, what is the bank and the other finance charges. Otherwise, our interest cost is in between the seven to 8% only. Okay. And is there any one one five impact in the interest cost? No. They they know such impact. Only effective interest rate, we have taken any bid on the amortization basis.

36:50 Okay. That's all from my side, and wish you all the best. Thank you. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The next question comes from the line of mister Abir Pandit from Old Bridge Mutual Fund. Please go ahead, sir. Hi, sir. Thank you for this opportunity. Sir, first of all, wanted to congratulate you on the scaling up of operations in Namakal and Tichi, and I believe that you might be able to grow this into the next Banas Kantar. So that is quite admirable. So just a question linked to your current market valuation. Sir, currently, the market is valuing your operations below your gross block. So I just wanted to understand if... Would you be evaluating, let's say, a buyback as a way of capital allocation along with your CapEx that you intend to spend over the medium term? So just wanted to get a feedback on this.

37:49 So if you... Thank you for the, I mean, the prudent question. I can only say, maybe the the market is not in the control of anybody. Market sees the EPS, market sees the performance. If you see our peer group valuation, Gujarat Energy having such a big cash pile with them, still market is not giving them such valuation. So market is wiser than us. What we can comment as a management on our part is that, that maybe it is lower than the cross lock, the market cap price should be reflecting. But we are sure of providing a higher EPS going forward, being a mean company, smaller company in the terms of better performance.

38:35 We are currently two GAs are in the formative stage. They will give Sonar along with Samarthal. So we we will focus more on our performance, and we don't have any, I mean, inductive mechanism in the market players domain. So we can only say that whatever market is reflecting, we will salute that, and we take a lesson, and we will try to improve it. No, sir. I mean, I understand that aspect. My... Just my point is that, sir, wouldn't... As a capital allocation method, right, wouldn't a buyback also make make a... I mean, better I mean, better decision along with your CapEx operations in order to scale up. Right? I mean, I understand your k... CapEx focus is based on scaling up operations in the other GAs.

39:28 But at the same time, since the market is giving an opportunity for buying back shares at a... I mean, competitively at a much cheaper valuation and seeing your business prospects going ahead, wouldn't it make sense to look at this? So just a thought here, not a perspective. That that really makes sense. You very rightly said. That really makes sense. And I cannot comment upon the promoter's thought process, but I can tell you these questions keep coming in the mind of promoters also, in the mind of board members, as well as stakeholders also. Solutions also keep worrying. At the right point of time, yes, if they collectively decide so, they would like to increase their promoter stake also and also offer a buyback position.

40:17 That is not out of question. That is not out of question. But we we can say as of now, there is no such thing. Okay. Perfect. Thank you. Thank you very much, sir. Yes. Good morning.. Good morning, sir. Has been the focus area because that's where we raised the funding. And we have seen a healthy rise in our volume, you know, from 6% to 11% in Namasal. And as you rightly said, I perceive that, you know, we will be able to make it the next Manaskatar more than that because of the sheer volume of being there. Nonetheless, when you are looking at the healthy prudence of capital restructuring and everything, we can set the importance of India's changing landscape environment in the way, you know, the global environment is also changing. So we are looking at opportunities in cleaner fuel and adjusted energy in our diversification strategy also, where the capital allocations will help us give long term shareholder value. So expansion is also on the state as well as upcoming the state. And promoter in last... To last quarter has done by buying out the state. So that is just for your information.

41:32 Okay. Done. Thank you. Thank you, sir. Thank you very much. Yeah. Just to add, our net debt people are healthy cash generation, establish our... As a opportunity for any preserving financial stability. In this turbulent phase, very few companies are preserving financial stability, and that's what we are doing, sir. Okay. Okay. Perfect. Thank you, sir. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. I repeat, if you have any questions, please press star and one on a telephone keypad. The next question comes from the line of mister Sarkit Kapoor from Kapoor and Company. Please go ahead, sir. Yeah. Namaskar, Samaji. Namaskar, Sabir team members group, and thank you for the opportunity.

42:21 Hope. Yes. Okay. Sir, firstly, as you alluded to the fact about some government notification that impacted the pricing and the availability of gas. So just for the sake of reputation and for the benefit of all of us in Genet, if you could explain what exactly has happened and what kind of dent in the EBITDA margin averages are we expecting because of this action, sir? Hello? Hello? Yeah. Yeah.

43:07 Yes, sir. And you are available for one? Yes, sir. Yes, sir.. We are are very mindful of our pricing policy because consumers have got an appetite to take on the price hike. Maybe our sourcing is unstable sometimes going striking high because of whatever volumes, I mean, whatever pricing sourcing we have explained to you regarding Brent and dollar and HPST allocation and all that. So, yeah, alternative privacy, we are very mindful of keeping the prices not higher than the petrol prices. If it happens, you know, that will happen in respective states.

43:56 The psychological factor will play and the new conversion, new expansion will come to... I mean, all... Almost like, you know, that that will take a hit and come to a standstill. That messaging we do want to give. We may absorb for some time. Till such time, things are smoothened. We would like to maintain that CNG conversion side, the petrol prices to be in our mind. Secondly, for industrial purposes, you see, we have already spoken that NGT orders are in place. The government is undergoing elective. So implementation of such a PPCV orders, I mean, NGT orders through PPCV is little slower.

44:44 And and there, the good point is that any new industry which is coming, their consent to operate, consent to establish is only on natural gas, clean air fuel. But those which are steel ruling plant and all, they are struggling with their dumping of steel from imported sources or they are themselves trying to, I mean, meet the quantity and quality parameters. They may be tempted to switch over back to the coal or any other fuel. Nowadays, coal gasification is also coming in a big way. So all those things we have to be very cautious of when we are pricing our I mean the retail selling price to the industry, to the CNG customers.

45:34 We have to only depend and focus on our sourcing portfolio. Cost optimization, operating cost optimization, the utilization of our existing pipeline and assets, even we are actually, we are offering the compression services to BPCL in Namaskal and Kuchi. We are trying that we have got LCNG stations there. So if compression facilities can be spared and at a higher price, higher margin, some other company, other GM take, we don't mind. I mean, all those angles we are trying, boss. So like the situation, another six months pass on, well, things will be much better for this sector.

46:20 If we... If not 15%, it'd be 14, 13, 12, whatever percentage of energy pie has to come in the bucket of natural gas, the India has to have the natural gas scenario much better than what we are having to do. So all the natural gas players, be it in CVD sector, be it the intra companies, be it the transmission companies, all will have better days coming for the diabetes. Sir, my question was particularly pertaining to the... I think so. I I think I have not understood the answer in that... In total context. What have been the notification from the government and its impact on the EBITDA margin? Or rather, sir, if you could just give us an understanding that our H1 EBITDA margin averages were at 14%, I think, so 14%.

47:16 So at 16.5%. So going ahead, especially for Q3 and also for the H2 parts, what should be the EBITA margin trajectory? And in terms of the volume part, we did, I think, so the highest for the quarter and also H1 was very good. So what should be the trajectory, keeping into account the current realm of things and the caution that you have already explained to us, how do these two line items behave for H2? In that two, I said the clear result. Only I had concern about q three. Only one month in the q three had passed, and government to a great extent has rectified their notification on h t... HPSP local domestic gas allocation of Reliance and OMBC.

48:12 So to a great extent, things have been rectified, but not fully. Only 80% rectification has happened. So this goes against the smaller players who used to bid higher in the auction and used to get more allocation, the cheaper price, the $9 per value, whereas the spot prices are running 25, 27, 29, 30, any damn thing, so depending upon everyday situation. So we cannot certainly tell you what will happen in Q3 or in direct one. Things are volatile. You have to trust the agility of the management, the agility of our sourcing team. So accurate guidance, we cannot give you in rupee terms that how much per ASTM will be giving you the margin or what percentage will be Anything you want to add, CFO, you can kindly add?

49:10 Yeah. Thank you, sir, for your questions. I think that your question is related to this... The... This notification came for the HPHT, which is... It is maintained the CEO. Correct? Right, sir. So there's... I'll tell you the notification. So there's one notification came on September 3 from the MOPNT regarding this HSBC allocation. You know that the methodology has been changed for the HSBC allocation to everyone. So we are kind of the smaller company as compared to the other segment. So we are impacted a little bit for this HSBC allocation. Again, this government... This MOQNT has given some relaxation on notification dated October 19, whereas this this this circular will be applicable, but it will be applicable in the in the face manner.

50:00 Correct? So based on that based on that, our sourcing team has done a long term project again with the balancing of this shortfall of the SDHD with the supplier. So be... Because of that, there are some leakage in this particular twenty days or one month. So that is why I said... CEO has said that our q three will not... Will be impacted a little bit. So still, we are confident that our EBITDA margin would be in the range of 15% for the s two as well. Okay. Sir, sir, when we look at our P and L for this quarter, we have booked lower depreciation and amortization expenses to the tune of INR 13.8 crores on a Q on Q basis. First quarter, it was INR 16.4. So can can you please explain the rationale and what are that it is?

50:51 So there were there were some exceptional deposition we have booked in this quarter one because of that. So we have we have done our surgical verification and everything in this quarter one, and we had... We have identified some of the assets where the deposition was not charged not charged in the previous quarter. So that was impact... Impacting this q one. Otherwise, the certain point to go, which we are showing this quarter two, will remain continue in the longer period with this capitalization. Okay, sir. And lastly, on the taxation part, we are taxed at 25%. We are 25% tax company? Yeah. Yeah. Okay. So when we look at our advanced tax number... Sorry, not advanced tax number, our cash flow, income tax paid net of refund is only to the tune of INR 4.5 crore, correct me here, as mentioned in the cash flow. So can you give us some understanding of the same?

51:42 No. No. The four point... So we... So I've... We have paid around 12.5 crore in this quarter. So this 4.5 is a net of the refund only, because we also got some refund from the BHK as well. So this is a net. Okay. So, sir, can you give me, as on date, when... What what have been the total, income tax rate? 20.5 is for the September quarter. What was for the June quarter? Yes. Till h '1, we had paid 12.5 crore. Okay. Okay. Till h '1, we have paid $12.12.5 crore. Right. Right, sir. And one more basic understanding and a suggestion, sir, when we report our results to the exchanges, crores are given in the millions, whereas our press release and investor presentation are in crores. So if our if we can use this one uniformity and in crores only, that would suffice giving us confusing number and denomination of first in millions and then in crores. Just a humble suggestion if that could be Okay. Thank very much. We will do this in the upcoming quarter. Thank you for your suggestion.

52:46 Yes. Yes. And other than that said, the the... Very adequately answered by the team up to all our questions. Only... Since that these these are sort of volatile trends that looking forward for two years or three years would not be the right today is not the right time, rather the timing is not correct. So we would wait further for Q3 numbers and all to have more more understanding and hope for more interaction, and all the best to the team and should be probably... And should some work for everybody, sir. Thank you. Thank you. Same to you. Thank you, sir. That was the last question for the day. Now I hand over the floor to the management for the closing comments.

53:33 Yeah. On closing remarks, I see you in this amount, like to thank each and every participant for very engaging season. Thank you all for joining us today and for the active part of one... Pending call... Conference call. On behalf of the entire IRM team... IRMENERGY team, I would like to express my sincere gratitude to all our shareholders, investors, analysts, business partners for all the continued trust and supports. We also hope that we have been able to answer all the key questions provided and the clear perspective on IRM's performance. Should you have any further questions, please feel free to contact us on our investor relation.

54:18 And when that is is right, we'll be more than happy to assist you all. Akash and also Krishna, thank you very much for attending this call so lucidly. I mean, interested me, and entire arrangement was wonderful. The IRM team along with me also deserves extended thanks for their wholehearted contribution in the performance of the company. And going forward also, their commitment will give us much, much better as well. On behalf of the entire company, all the shareholders, board of retail as chairman, I extend my thanks to all of you with us. Thank you very, very much for the evening. Thank you so much, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of we thank you for your participation.

55:05 You may disconnect your lines now. Thank you, and have a pleasant day.