Saatvik Green Energy (NSE:SAATVIKGL) Q2 2027 Earnings Call

0:05 Ladies and gentlemen, good day, and welcome to the Saatvik Green Energy Q2 FY 'twenty seven Earnings Conference Call hosted by Motilal Oswal Financial Services Limited. 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. Please note, this conference is being recorded. I now hand the conference over to Ms. Daksha Daga. Thank you, and over to you, ma'am. Thank you. Good evening, everyone. On behalf of, I welcome you all to the q two and h one FY twenty seven earnings conference call of Saatvik Green Energy Limited.

0:55 We have with us today the senior management team of the company, Mr. Girish Garg, Chairman and Managing Director Mr. Prashant Mathur, Chief Executive Officer and Mr. Rishav Mehta, Interim Chief Financial Officer. Before we begin, I would like to remind you that some of the statements made on the... Made on today's call may be forward looking in nature and must be viewed in conjunction with the risks the company faces. A detailed disclaimer is included in the earnings presentation, which has been shared with the stock exchanges and is available on the company's website. We will begin with the management's opening remarks followed by a question and answer session. Before asking you a question, we request you to kindly mention your name and the name of your organization. With that, I now hand over the call to mister Nikeshwar. Over to you, sir.

1:42 Thank you,. Good evening, everyone, and a warm welcome to the quarter two and half one FY 'twenty seven earnings conference call of Saatvik Green Energy Limited. Thank you all for joining us today and for your continued trust, confidence, and support towards Saatvik. I'm joined by Mr. Prashanth Mathur, our Chief Executive Officer and Mr. Rishan Mehta, our Interim Chief Financial Officer. Quarter two of financial year twenty seven marks an important step in Saatvik's journey. It was a quarter in which our execution caught up with our order book and one of significant progress on our strategic priority, the transition to a more integrated solar manufacturing platform. Before I take you through the quarter, let me place it in the context of where Saatvik stands today.

2:34 Our established manufacturing base is at Ambala in Haryana, where we have 4.8 gigawatt of module capacity and two gigawatt of encapsulant capacity. Our next generation integrated hub is at Gopalpur in Odisha where... Which is where the next phase of our growth is being built. Our scale and quality have been recognized externally. We were ranked among the world's top 21 solar PV module manufacturers by terawatt EV research in the first quarter of two thousand twenty six and amongst India's top four leading module suppliers by Mercom India. Let me begin with an update on our Odisha integrated manufacturing project, which is the key milestone in this transition.

3:24 The Phase one project spread across 57 acres comprises 2.4 gigawatt of cell manufacturing capacity and four gigawatt of module manufacturing capacity. I'm pleased to share that commercial production at our 1.3 gigawatt module manufacturing facility in Gopalpur commenced successfully on 11/02/2026, and we expect the full four gigawatt capacity to be in place by December 2026. This will take our operational module capacity from 4.8 gigawatt at Ambala to 8.8 gigawatt both combined Ambala and Odisha. On the cell manufacturing side, the 2.4 gigawatt line has moved from installation to trial run, which has commenced, and we are targeting production ramp up by December 2026.

4:19 The ALMM list to inspection has been called for and is planned within November 2026. The Odisha facility represents a significant step forward in strengthening our manufacturing capabilities. With both cell and module capacities coming up at the same location, we'll be able to serve customers with a more integrated and resilient manufacturing platform. Beyond Phase one, we are progressing with the next stages of our manufacturing expansion. Phase II spread across 27 acres, enlarges an additional 3.6 gigawatt of cell manufacturing capacity, taking our total cell capacity to six gigawatt, with completion targeted in the financial year 'twenty eight.

5:08 In parallel, we have initiated planning for Phase III, which envisages six gigawatt of inverter and wafer manufacturing capacity. Phase three is targeted for completion in FY '29 and is aligned with the ALMM late list three requirement, which applies from June 2028. Taken together, this is how our value chain is being built. In modules, we have 6.1 gigawatt live today and will add 2.7 gigawatt by December 2026, taking us to 8.8 gigawatt. In sales, the 2.4 gigawatt line has commenced trial runs with production ramp up targeted for December 2026, followed by 3.6 gigawatt in Phase II in year FY 'twenty eight. In encapsulants, we have two gigawatt life and are adding three gigawatt by FY '28, taking us to five gigawatt.

6:06 And in ingots and wafers, six gigawatt is planned for FY '29. Each stage has a defined capital plan and a defined time line, and together, they will progressively deepen our backward integration, strengthen supply chain resilience and build a more comprehensive domestic solar manufacturing ecosystem. Against this backdrop, Q2 FY twenty twenty seven was a quarter of improved execution. Revenue from operations grew 77% sequentially, and we ended the first half with a confirmed order book of 6.68 gigawatt. That approach remains to build a business with healthy economics and long term value creation rather than to pursue volume at any cost.

6:53 Let me now take you through our operational performance. In quarter two, we produced six fifty eight megawatt of modules compared with four zero eight megawatt in quarter one and seven 90 two megawatt in quarter two last year. Sales stood at six forty megawatt compared with three thirty four megawatt in quarter one and five 38 megawatt in quarter two last year. For the half, production was ten sixty six megawatt and sales were nine seventy three megawatt. Average realization was 13.49 per watt peak in the quarter and INR 13.89 per watt peak for the half. Effective capacity utilization was 58.5% in quarter two and forty seven point four percent for first half.

7:44 And with the Odisha now coming on stream, we see room to improve it. Domestic customers contributed 96.7% of quarter two revenue. Moving to the order book. Our confirmed order book as on 09/30/2026 stands at 6.68 gigawatt, equivalent to about 110% of our installed module capacity of 6.1 gigawatt. During the second quarter, we added nine seventy megawatt of new orders and executed six forty megawatt, taking the order book from 6.35 gigawatt at the start of the quarter to 6.68 gigawatt. For the half, new orders were 1.76 gigawatt and executions were nine seventy megawatt.

8:34 Recent wins include an order of INR $4.76 crore from Vikram Engineering in August, domestic module orders of about INR 190 crore in August and INR 297.5 crore in September and an order of INR $10.41 crore from the SECI Solar Energy Operation of India in September and an order of INR 100 crore from MSCBCL in October. Let me now turn to the industry because the shift that is underway supports our strategy. The solar manufacturing industry is going through an important structural transition. In a module led model, competition is largely on capacity and price with heavy reliance on imported sales and margins exposed to commodity and currency swings.

9:26 In an integrated cell led model, domestic cell capacity becomes an entry barrier. Integrated peers are better able to secure supply, and vertical integration becomes a structural advantage on cost and margin. Policy is guiding this shift. ALMM List one for modules has been enforced since April 2021. ALMM List two for solar cells came into force on 06/01/2026 with a limited exemption for net metering and open access projects commissioned by thirty fourth December twenty twenty six, and the ministry has been clear that there is no blanket extension. ALM List three for inverts and wafers applies from June 2028, and manufacturers seeking investment for wafers must have equivalent invert capacity.

10:19 Domestic cell capacity is still only around 37 gigawatt against well over 200 gigawatts of module capacity. The government has also indicated that it is preparing a support scheme for polysilicon manufacturing. Integrated manufacturing is therefore expected to become a key differentiator in the evolving industry landscape. Demand remains strong. India added about 20.8 gigawatts of solar capacity in the first half of this financial year following the required 44.6 gigawatts in FY twenty twenty six, an increase of 87% over the previous year. Non fossil capacity stood at about two thirty eight gigawatts in March 26 against the 500 gigawatt target for 2030, leaving a gap of roughly two seventeen gigawatt to be filled.

11:11 And annual solar demand is expected to go from about 50 gigawatt in FY '27 to 85 gigawatt by FY 2020. Government programs are adding to this momentum across segments. Under PM Surah's average targets, one crore households, more than 50 lakh households now have rooftop solar. July 2026 was the strongest month since the scheme's launch, and the government is targeting 75 by December. PM Khosum projects are working to a completion deadline of March 2027. And the next phase of the scheme, which is expected to include an agri PV component, is being finalized. In the commercial and industrial segment, open access solar alone is estimated at 20 to 25 gigawatt of opportunity as large corporates increasingly adopt renewable energy to meet their ESG goals.

12:11 Globally, The United States will begin applying Section two thirty two tariffs and minimum import prices on polysilicon based products on December 4. And duties on solar cells and modules from India are also moving ahead. Exports are only about 3% of our revenue, so our direct exposure is limited. SAATVIKGL building for India's domestic demand. SAATVIG is well positioned for this transition. Our strategy is centered on strengthening our core module and cell manufacturing capabilities, followed by deeper backward integration into ingot and wafer manufacturing, supported by ancillary capabilities such as encapsulants. This deeper integration will give us greater control over key inputs, enhance operational resilience and help us manage the impact of commodity prices, foreign exchange movements, and global market volatility more effectively.

13:07 At the same time, we are continuing to diversify our customer base and market presence. We have entered the b to c segment, and we are strengthening our distribution network. We launched our Quadcut Topcon 3.0 dual glass bifacial modules at the Renewable Energy India Expo twenty twenty six. We are expanding our portfolio through this UPREX SUDER CONNECT Solar Kit for residential and small commercial customers, the UDER plus hybrid inverter, lithium battery solutions for energy storage, and e commerce that extend our reach to customers directly. Our other businesses are still small, but they are growing. EPC, solar pumps, transformers, inverters, encapsulants, and batteries together contributed to $4.00 $8,000,000 of revenue in quarter two and $64,000,000 in half... First half.

14:05 And this is now being supported by new products, including the quad cut top con bifacial module unveiled at the IEI Expo and a new hybrid inverter range. On solar kits, we have compared the technical, commercial, and pricing aspects of kits and key system components to identify best in class configurations, finalize the mounting structure design, and standardize the balance of system. These steps widen our reach into the residential, c and I, and storage segments alongside our core module business. Our vision is to move from move from being a solar module manufacturer to an integrated energy platform, so when utility scale, C and I, agricultural, and residential customers to one portfolio, enabled by modules, inverters, transformers, and in time battery energy storage systems.

15:02 That means capabilities across manufacturing, power electronics, storage, components, and a broader energy infrastructure. Finally, let me say a word on responsible growth. Saatvik has received its first ever EcoVadis bronze medal, placing us in the seventy ninth percentile globally, a major sustainability milestone. We received the Golden Peacock Occupational Health and Safety Award 2026 and the Prixley Award 2026 from the ESG Research Foundation. Arambala facility holds the IGBC Green Factory Building silver rating, and we were named brand of the year at the India Power and Renewable Leadership Awards twenty twenty six. These recognitions reflect the culture we want to carry carry into the next phase of growth.

15:53 With that, I will now hand over the call to our interim chief financial officer, Mr. Rishab Mehta, to take you through the detailed financial performance for the quarter. Thank you. Thank you, L. J, and good evening, everyone. I will now take you through the financial performance for quarter two and the first half of fiscal year 'twenty seven. Revenue from operations for quarter two FY 'twenty seven stood at 9,026 million dollars compared with $500,110,000,000 dollars in quarter one FY 'twenty seven, a sequential increase of seventy seven percent and 7,680 million dollars in quarter two FY 'twenty six. EBITDA stood at $696,000,000 with an EBITDA margin of 7.7% compared with $425,000,000 and an 8.3% margin in quarter one FY 'twenty seven and $1,263,000,000 dollars in quarter two FY 'twenty six.

16:52 Other income was $253,000,000 Profit after tax stood at $2.00 $2,000,000 compared with $54,000,000 in quarter one, FY twenty twenty seven and $847,000,000 in quarter two, twenty twenty six. The improvement over the previous quarter was primarily driven by higher sales volume. For the first half of FY 'twenty seven, revenue from operations was 14,136 million dollars against 16,838 million dollars a year ago. EBITDA was $121,000,000 a margin of 7.9% and profit after tax was $256,000,000 Module sales accounted for about 96% of H1 revenue.

17:39 From a balance sheet perspective, our debt to equity ratio stood at 1.37x as on 09/30/2026 compared with 0.99x in June 2026 and 0.44x a year ago, reflecting the build out in Odisha. Capital expenditure in H1 was 5,001 million dollars and capital work in progress stood at 8,042 million dollars up from $300,841,000,000 dollars in March 2026. As Odisha is commissioned, these assets will move into operation and begin to contribute to revenue. On working capital, inventories were 9,074 million dollars compared with 7,016 million dollars in March 2020 as we built stock ahead of Odisha and order execution.

18:27 Disables came down to 4,855 million dollars from $6.09 $88,000,000 and trade payables was 4,705 million We are conscious that leverage has risen during the build phase. Our focus in the coming quarters will be on commissioning on schedule, improving capacity utilization and managing the balance sheet with discipline as a new capacity begins to generate cash. With that, we will now like to open the floor for questions and answers. Thank you. Thank you very much. We will now begin the question and answer session. Participants are requested to use handsets while asking a question.

19:22 Ladies and gentlemen, we will wait for a moment while the question queue assembles. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset for asking a question. The first question is from the line of Abhishek from Motilal Oswal.

20:13 Two questions. Number one, if you can just you know, give us some details around realizations for, you know, for various segments in DCR and non DCR right now. So you could be scale, you know, retail, C and I, whatever the reservations right now. Okay. So in terms of our yes, good evening, Abhishek. In terms of our revenue breakup, C and I accounts for about 28%. Utility accounts for about 52%, 52%, 55%. Export is about 3% and retail is about 12%.

21:02 So and other revenue is about 4%. So that is on the revenue breakup. In terms of are you talking about price realization? Prashanthi, actually, was talking about like what are the pricing in DCR, non DCR in various segments right now. Like what I'm hearing around 2021, for example, what per watt peak in the utility space from other companies. Is there a number that you guys are also encountering? Yes, that's correct. For top one, the prices are somewhere around these numbers only. And for non this year, the prices are somewhere around 13, INR 12.513.

21:49 And this is for delivery in FY '29, I guess, 08/29, right? That's the current, what we are talking about. Current pricing. Okay. Got it. And second question is, you might have seen this news about China export controls related to technology transfer for cell and wafer. So does that impact you in any way, especially for Phase II of the cell capacities or even for the inverter capacity? So this policy change has been announced. We are looking we are taking a close watch on how it develops. So it is expected to come somewhere around November 15.

22:38 But China has announced these kind of measures earlier also, but that has really not worked out. In fact, we have done the groundbreaking over Phase II cell manufacturing, which is 3.6 gigawatt. Apart from that, what China does not really own the technology. There are options outside China also, especially in Germany for alternative sources for cell manufacturing equipments. The only reason why China was prevailing was because of the cheaper equipments which were available there. So it does not really hamper the cell manufacturing or inward wafer manufacturing to come to India.

23:30 So we are not very worried about this. I think it will just die its own death over the years, over the period of time. So just trying to understand this a little bit better. For all the capacities which are coming up maybe, say, second half of the next fiscal, will the technology transfer agreement be done already? And do you think maybe they will not be impacted even if this thing comes through? Abhishek, it's really difficult for me to really comment because as I said, there have been couple of times earlier as well when those measures have been announced from China.

24:18 But there have been ways how that technology has actually moved outside China. So ideally, it should not delay or derail any of the projects. The good news is that our first phase is ready. And the other thing is that our tie up for our second phase is also there. So it should not derail or delay any of the equipments for cell manufacturing. Got it, sir. So just one last question. Like, if we Sorry to interrupt, sir.

25:04 Yeah. Should you have a follow-up question, please rejoin the queue. Okay. Sure. Next question is from the line of Janam Jain from IIFL Capital. Please go ahead. Thank you for the opportunity, and congratulations on the good set of numbers. Sir, can you please throw some more light on this Studio Connect feature, which you have launched for the residential customers in terms of helping us understand the business dynamics, how the dealership network we have for and what sort of competition are we seeing in that segment? Yes. Thank you, Mr. Jayman, for the question. So Surya Connect is basically the solar kit, which we have recently launched. As you can see, the industry is moving from B2B to B2C.

25:56 And with the PM Sudigree scheme, more and more residential is now adopting to solar technology. In fact, INR 1 crore homes were to be solarized in the first part of the scheme, the first phase. And almost INR 57 lakh solarization has already happened and various must be in the pipeline. So the scheme is running very well. And more and more customers along with our modules have been asking for panel for inverters as well.

26:41 So we launched the solar kits as as a turnkey project wherein people can order through our distributors as well as online, and then they can get this installed by a local IMC registered player, which gives the power with the customer to take the decision on going with one single brand. For this, we are creating our distribution network with... To every district and to every village. Currently, we have... For the b to c, we have already developed a distribution dealer network, reseller network of close to about 85, 90 distributors across India.

27:26 And we are in process of adding more and more resellers, distributors. So this is well aligned with how the residential rooftop is going to move toward in the future. Okay, sir. And sir, in terms of competition and what stands as a right to win within the segment? Because I understand I believe that there must be a lot of competition from the other competitors as well, right? So there are INR 140 crore people and so there is competition in India in every field. But what we believe is that, you know, based on our brand equity, giving a solar kit as a solution, the very few people, companies who are doing it and doing it successfully.

28:22 And we have consciously focused more and more on the B2C segment now with our various marketing campaigns as well as to create awareness because solarization has to happen. And there's little brand visibility currently on this from a consumer point of view, and this is a great place to really penetrate into. And that's why we have this sort of kit. Next question is from the line of, an individual investor.

29:33 Myra, you're not audible? Hello? Am I audible now? Yes. Yeah. So, sir, my question is that you're expanding beyond the solar module manufacturing into EPC and solar pumps. The plan opportunity. So sir, what is the strategy for these businesses and what contribution do they expect to make to revenue and profitability over the next two to three years? Thank you, Ms. Myra, for the question. So the industry is now moving towards a fully integrated model. And it's like we have already got into cell manufacturing.

30:18 We are getting into in wafer manufacturing as well as ancillaries like encapsulant. And so to have a better control on the supply chain and on the cost because that's how the industry is moving towards. In a typically, in a solar project, along with the panels, have the inverters, you have structure, you have transformers. And our... The reason why we are getting into these products are because these are allied products, and we want a better share in in any project. So like solar panel contribute to almost about 50%, 60% of the project cost. Inverters contribute to about 10% and then you have transformer. So we want to increase our share in that solar project to about 70%, 80%. So that's the reasoning why we are getting into these businesses.

31:20 In the first half of the year, so last year, our contribution of non solar panel was somewhere around 2.53%. This year, we're already at 4%. And we are targeting in next two years to increase this share to about 15% of our revenue. The reason is to have a better control and better spread to derisk our business as well. Thanks, Saatvik. And sir, so with the modeling capacity also expected to increase to eight hundred thirty thousand thousand and thirty and and thousand So what is your what is your view on the revenue and volume growth in your outlook for FY twenty seven to date and EBITDA margin also?

32:20 What tragically factor? Sorry to interrupt, ma'am, but there's so much background noise from your side. Okay. Is it better now? Yes. Yeah. So so my question was, like... So with the module capacity expected to increase to 8.8 gigawatts and cell capacity to six gigawatts, so what is the management's revenue volume growth for FY '27 and 2028? Yeah. So what we are doing is, as I said, integrated. So ultimately, you know, your entire facility will be integrated. So currently, you know, 8.8 gigawatt of modules, six of inward wafer and cell.

33:15 So this is how we are moving. In terms of our revenue projections for this year, it is in the range of about 6,000 with an EBITDA of about 12%. That's how the outlook has been and the projections have been given for this year. Okay. Thank you, Thank you. Thank you. Next question is from the line of Mahesh Kumar from MU Investment. Please go ahead. So my first question will be the current certificate Sir, your voice is breaking.

34:08 Can you please use your handset? Is it fine now? Is it clear? Yes. Yes. So I was asking that what is the current status of commissioning and stabilizing of the phase one of project comprising of 2.5 gigawatt sales and four gigawatt module capacity? And what is the time line for optimal utilization of that plant? Okay. So for the module, our first phase, 1.3 gigawatt has already been commissioned. Last week maybe like three, four days back only we received our consent to operate from the government.

34:56 And now inspection is... We we are lining up that inspection. So hopefully, in the next two, three weeks, we will have and then we will be able to generate revenue from Odisha from our module plant. And then the rest of the phase will come in December for the module. In terms of cell, so cell 2.4 gigawatt is under ramp up right now. So the equipments have already been established. We have started trial runs and production. And currently, we are in ramp up stage. We are expecting to... After this Diwali, we will be calling for inspection for sale.

35:45 And, expectedly, by end of... Between by end of November, we will have the ALM inspection done and ramp up to be at least established by the end of December. Typically, for the entire 2.4 gigawatt, it takes some time to really get to the 97%, 98% yield, which will happen in the last quarter of this financial year. Okay. Okay. And so with the industry, if you see it gradually shifting towards how does the Sir, your voice is breaking.

36:39 So so I was asking, like, if the industry is gradually shifting towards integrated sales and module manufacturing, manufacturing, how does SAATVIK assesses its competitive positioning against peers? Yes. So the industry is now moving towards cell led competition. So there are still non DCR orders in the system, which in our account is about 70, 80 gigawatts. In some accounts, it's still even more. And our first phase 2.4 gigawatt and second phase 3.6 gigawatt will give us six gigawatt of sterile capacity.

37:26 With some additional equipment, we will be adding some more capacity into the six gigawatt as well. So we are well positioned from our cell plus module model. And so that transition will happen somewhere in next year, rather full year non DCR plus GCR both will work out. And by the time, our second phase of sale will also come up. So that's how the transition is going to happen in the next financial year. Okay. Okay, sir. And if...

38:14 Like like, how does company plan to manage module price correction and raw material cost fluctuation while, you know, predicting our profitability Sorry to interrupt, sir. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Himish Pandya from NP Investments. Good evening. Am I audible? Yes. Yes. Sir, I have couple of questions. Sir, with the commissioning of Odisha, cell manufacturing facility, what level of margin improvement does management expect from backward integration?

39:01 And sir, when are these benefits likely to reflect in financial performance, if you could highlight on these points? So the benefit should start hitting from third quarter partially, very, very partially. But fourth quarter onwards, it should really show us the real benefits. And then from the first quarter with full yield and the full optimization of the plant, we will next year will be wherein we will get the entire from this 2.4 gigawatt.

39:47 In terms of our margins, we cannot give a number, but it will be in line with our peers who are already in cell manufacturing. So those kind of numbers, you can refer to their results, and it should be somewhere in the close proximity to those. Understood, sir. Understood. So my second and last question is, what is the current sourcing arrangement for wafer during required at the Odisha facility? And how will the company manage import dependence and potential cost fluctuations until it's proposed ingot and water facility becomes operational?

40:36 Yes. So on the wafer side, we are already working on long term contracts with the Tier one suppliers in China. So already, as I said, we have started ramping up our sales. We are producing in very, very small quantities already sales. So the wafer tie ups and buying has already happened. From a long term perspective, the government ALMM3 is going to kick in June 2028. So we are aligned with this policy change, and we are also setting up a six gigawatt inward wafer manufacturing that is going to also come in Odisha.

41:30 So from a long term perspective, we will be getting into our own manufacturing. Other supply chain also, like encapsulant is another raw material, which is very important raw material and supply chain is always a problem there. So we already have two gigawatt manufacturing of encapsulants in which we are also expanding now to five gigawatt. Understood, sir. Thank you. Thanks a lot. That answers all my question. Thank you. Thank you. Next question is from the line of Abhishek from Motilal Oswal. Please go ahead. Yeah. Hi. Thank you for the opportunity. So just one clarification.

42:18 So I think you said 6,000 crores in revenue and 12% EBITDA margin. The... Does that refer to FY '27 or FY '28? So that's my first question. FY 'twenty seven, that is the guidance. Okay. Because we've done like, I think, about 6%, 5% on in the first half. Average 12% for full year sales will be like north of 16%, 17% in the second half. Yes. So with the cell commissioning, we are expecting that our EBITDA in the last four months will of this financial year will increase, and that will affect the overall annual EBITDA.

43:16 Okay. Fair enough. And is it possible to know the order book makeup between DCR and non DCR? Yes. So the order book breakup is about 60% DCR and about 40% non DCR. Okay. And DCR, like is it possible to give us some sense of average margins for DCR? Typically, people are saying DCR will be around six to seven or so EBITDA per watt peak. Is that a good number to work with? Yes. As I said, it's going to be in line with whatever peers are getting. So should be around the same numbers.

44:12 Okay. Got it. And just last question, can you give us a sense of you already told us a bit on the cell utilization from 2.4 gigawatt, but module utilization in FY 'twenty eight and even the cell utilization in FY 'twenty eight? What was the most It's really difficult to do, but Yes. I think it will be a forward looking statement. I don't think it will be fair to give those numbers. But this year is particularly realignment year because ALMM one and ALMM two transition is happening and then June, it happened and in July, it was reversed.

45:06 And now we are expecting it to get kicked in from January 1. So this year particularly is a realignment year. And obviously, because of the commodity pricing and all that changes which are happening in the industry, By and large, this will get sorted out by next financial year. So I think next financial year, we will be it's going to be a much smoother run with higher capacity utilization. For cell, obviously, there's huge demand for cell. So we are looking at about 90% capacity utilization in cell, and that's what we are targeting.

45:54 In module, last year, we were at 85% capacity utilization. This year is about 58%. Yes, ish percent, which I think should improve in the second half of the year. But the next year, we would love to be back in the 80s capacity utilization and models. Thank you.

46:42 Due to time constraint, we hand over the call to the management for closing comments. Thank you, Chorus team, and thank you, everyone, for your questions. Before we conclude, let me briefly summarize our priorities for the coming quarters. Firstly, we remain focused on ramping up our Purisa module line to its full 40,000 capacity by December. Second, we will ramp up our cell manufacturing line towards production by December and progress towards completion completing the LMM List two process. Third, we will focus on the timely execution of our 6.68 gigawatt order book while continuing to strengthen our order pipeline.

47:30 At the same time, we will remain disciplined in managing our working capital and overall balance sheet. Saatvik is steadily transitioning from a module assembler to a more integrated solar manufacturing company with capabilities spanning and excellent modules and cells with a long term road map towards ingot and wafers. This backward integration will be important in strengthening our margins, improving supply chain security and creating sustainable long term value for our stakeholders. We believe we are at an important stage in our growth journey, where our investment and strategic initiatives are translating into manufacturing capabilities and business opportunities.

48:16 With this, I would like to thank all our investors, analysts and stakeholders for their continued trust and support. For other further queries or clarifications, please feel free to reach out to our Investor Relations team at AdFactors, who will be happy to assist you. Thank you again for joining us and wishing you all a very happy Diwali. Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.