Sarda Energy & Minerals (NSE:SARDAEN) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Sarda Energy and Minerals Limited q one FY twenty seven earnings conference call. 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 that this conference is being recorded. I now hand the conference over to mister Patcha Han from Airfactor PR. Thank you, and over to you, sir. Good evening, everyone, and thank you for joining us today to discuss the q one FY twenty seven business performance of SARDA Energy and Minerals Limited. We have with us mister Pankaj Sarda, managing director mister Mani Sarda, deputy managing director mister Padam Kumar Jayan, director and chief financial officer and mister Nilaj Joshi, executive director.

0:56 Before we proceed with this call, I would like to mention that some of the statements made in this call may be forward looking in nature and may involve risks and uncertainties that are difficult to predict. The company undertakes no obligation to update any forward looking statement to reflect developments that occur after the statement is made. Documents related to the company's financial performance, including the investor presentation, have been uploaded in the stock exchanges and company website. I now hand over the conference to Mr. Pankaj Sarda. Thank you and over to you sir. Thank you, Pat. Good afternoon and thank you all for joining us on the Q1 FY twenty twenty seven earnings call. I hope you have had a chance to go through the financial results and investor presentation uploaded on the exchanges and our company website.

1:43 Q1 FY twenty twenty seven stands as testament to the series of decisions we have taken over the last few years to build a diversified integrated business model, one that has continued to help us navigate external challenges. Following a record FY twenty twenty six, we have begun the new financial year with continued progress across our strategic priorities, strengthening our integrated business model through disciplined execution, strengthening expansion pipelines through disciplined capital allocation and improving efficiencies. Let me now walk you through the key highlights of the quarter. Despite a combination of planned maintenance shutdowns, unplanned outages and seasonal factors, Q1 FY 'twenty seven financial performance remained robust with the highest ever quarterly EBITDA and PAT.

2:36 Q1 total income stood at INR1717 crores, EBITDA at INR762 crores and PAT at INR478 crores, a growth of 9.4% Y o Y. Net profit included a one time net benefit worth INR110 crores mainly relating to the regulatory approval of final project cost for 113 megawatt Sikkim hydropower plant. Moving to the operational performance. Our Energy business remained the key growth driver, contributing nearly 70% of consolidated EBITDA and providing stability to overall earnings. We have secured medium and long term power supply agreements for over three eighty megawatt out of the total seven ten megawatt saleable power capacity, which meaningfully improves revenue visibility and earnings stability for our power business going forward.

3:33 During the quarter, generation at the 600 megawatt thermal power plant continued to be steady during the quarter with an average PLF of 85.9%. Generation across our small hydropower plants was affected by delayed monsoon conditions during Q1. However, we are encouraged by the early trends in July and are hopeful of a better momentum in Q2. Separately, as previously announced, Installed Exchange and Information, our 113 megawatt Sikkim Hydropower project was shut from June 18 to July 5, following the collapse of a transmission tower caused by heavy rainfall and landslide. The plant has resumed operations fully and is functioning at normal level. On the metals front, while iron ore pellet production supported our operating performance, but the consolidated revenue for the steel and ferrole segments declined Q o Q as the production was impacted by several plant outages.

4:33 Firstly, the plant replacement of 30 megawatt captive power plant unit at Raipur along with improvements works across steel and ferroalloys facilities temporarily impacted production. This resulted in a temporary Y o Y decline in production of billet, wire rod, etcetera. However, the new 30 megawatt unit is ready for trial operations. We expect stable commercial operations to begin by the middle of this month. Secondly, at WISAC, the captive power plant underwent scheduled maintenance for twenty three days affecting ferroleoid production. Additionally, one of the ferroleoid units at Siltera was also under shutdown for fifty three days for refurbishment. On the realization front, the steel prices remained largely range bound with a mild negative bias during the quarter, while ferroalloys prices saw a modest improvement.

5:24 The price realization from sale of power was lower Y o Y. Moving on to the updates on our ongoing capacity expansion. Execution across our major expansion initiative continues to progress as planned. The regulatory approval process for expanding our thermal power capacity at SKS from 600 megawatt to 1,200 megawatt is on track. The brownfield expansion remains one of the most capital efficient growth opportunities available to us, backed by existing land, water, material handling system and evacuation infrastructure. Approval process for our three small hydro projects in Chattisgarh, 74 megawatt aggregate is progressing as scheduled. Commissioning of our 50 megawatt captive solar project has been delayed due to right of way issues on the transmission line. We now expect commissioning before the end of the next quarter.

6:18 For our recently acquired 66 megawatt hydropower project in Arunachal Pradesh, Most key statutory approvals are in hand and critical land acquisition is complete. Work for approach road started. We remain confident of hitting our planned time line on this project. On mining, development of the Shampur West high grade coal mine remains on schedule with commissioning targets targeted before the end of FY 2027. The Bartunga Hill coal mine is expected to be opened by the end of next financial year, while regulatory approvals for the Garipalma 4x5 and Sinduri coal block continue to progress as planned. Additionally, as part of our sustainability agenda, we are investing approximately INR300 crores. The project includes a waste heat recovery power plant at Vizak with an aim to improve energy efficiency and resource utilization.

7:13 As committed earlier, we continue to be very prudent about our balance sheet while undertaking all these expansions. All ongoing expansion projects continue to be funded through internal approvals. We are now net debt free on both a standalone and consolidated basis with a strong balance sheet and healthy liquidity of more than Rs. 2,500 crores as of 06/30/2026, giving us significant flexibility to execute our long term growth plan. Looking ahead, our focus remains on disciplined execution of the expansion pipeline, timely commissioning of ongoing projects, deepening the integration from mining to energy to metal and further strengthen the balance sheet. We are confident these initiatives will continue to enhance earnings visibility, improve operating efficiency and support sustainable value creation for all our stakeholders.

8:02 With that, I'll hand over to Mr. Manish Sarda to walk you through the industry environment and outlook. Good afternoon, everyone, and thank you for joining us. Good afternoon, everyone. Can you hear me? Hello? Yes, sir. Can you hear me? Yes, sir. We can hear you loud and clear. Energy sector demand. Not audible? Sir, it is very much audible. Okay. So let me go ahead then. India's power generation grew 9.4% year on year to around five twenty six India's Hello?

8:49 Hello, are you there? Yes, I'm there, very much. I can hear both of you actually. Talking about energy sector demand? I think they are unable to hear us. Am I audible? Yes. You are audible. But who is Manish Manishwai? Mani sir, you may continue. So India's power generation grew 9.4% year on year to around five twenty three billion units during the quarter. Thermal generation grew 7.5% and continue to account for close to 70% of the country's total generation, while renewable generation including large hydro grew approximately 15%.

9:36 Delayed monsoon conditions weighed on hydropower with small hydropower generation declining roughly 30% year on year and large hydropower generation declining 7%. This was more than offset by a sharp 45% increase in solar generation. Average prices on the day ahead market held broadly stable at $3.85 per unit compared to 3.92 per unit in the corresponding period last year. However, prices in July have moved up from 4.19 to rupees 5 per unit year on year. The government continues to prioritize energy security by promoting domestic energy resources and reducing dependence on imported coal and oil. Reflecting global supply disruptions, higher logistics costs from geopolitical tensions and Indonesia's export restrictions, the Indian coal index for June 2026 was minus 21% higher than June 2025 and minus 11% higher than March 2026.

10:36 Steel sector. India continued to outperform major global steel producers through the first half of calendar year 2026. Domestic crude steel production grew over 7.5% even as China and several other major producers saw declines. The weak domestic Chinese real estate demand continued to push exports into global market at around 10,000,000 tons per month. Amidst this, India's apparent steel consumption grew year on year though momentum moderated sequentially. Imports have once again exceeded exports after two quarters, partly on the back of free trade agreements with partner countries. We welcome the government's anti dumping investigations, which should help address unfair imports and support domestic producers. The ongoing conflict in West Asia has raised input costs and created supply chain disruptions.

11:27 Elevated oil prices could inflationary pressure and affect demand in certain end use sectors, including steel. While we remain in a wait and watch position, given India's predominantly domestic demand driven economy, we expect to overall impact to remain manageable. Government initiatives under VCSEL Bharat 2,047, Make in India and Aapmanil Bharad continue to drive investment across manufacturing, logistics, electronics, semiconductors, data centers and industrial infrastructure, creating sustained long term demand for reliable competitively priced power as well as metal sector. How is SEML's positioning? Against the backdrop, we believe SEML is well placed to capture these structural opportunities through our integrated presence across mining, energy and metals.

12:20 Our diversified and calibrated expansion pipeline is well aligned with India's long term priorities of energy security, manufacturing led growth and economic self reliance. With plans to quadruple our mining capacity and double our energy generation capacity, we are entering the next phase of growth with a strong balance sheet, improving operating momentum and clearly defined roadmap. We remain confident that our integrated model, disciplined capital allocation and continued execution focus will drive sustainable growth and enduring value for all stakeholders. With that, we'd be happy to take your questions. Thank you. Thank you very much. We will now begin the question and answer session. You may press star and two. Participants are requested to you to answer a last name question.

13:17 Ladies and gentlemen, we would wait for a moment while the question queue assemble. Participants who wishes to ask a question, may press star and one on your touch tone telephone. The first question is from the line of Sigan Harira from GreenEdge Wealth. Please proceed. Yeah. Hi. Thank you for the opportunity. See, my first question is, you know, on our, you know, IPP, you know, the power sale and power realization. So if I just back calculate the numbers, in this quarter, we earned almost 8 rupees a unit on our power sales.

14:11 Now, you know, I heard on the call that, you know, almost 370 megawatt of our capacity has... You know, the... We have some long term PPAs or midterm PPAs for that. And I'm sure the rates for PPA will be between 5 to 6 rupees. So so is it fair to say that going right as more and more PPAs are signed by us, you know, the revenue per unit of power will keep declining? Hello? Am I audible? Yes. You are audible. Yeah. Just just hold on. I think disconnected.

14:57 Can you connect them, please? Yes, sir. I'll just connect them again. Hello, sir. Am I audible? Hello? Can't hear you. Hello? Am I audible to you, sir? Sir, I think the rapport team is unable to hear you... Us. So then you do one thing. You may be asking on mobile? Are they on mobile, or are they on landline? No. No. See, you connect on the mobile. I'll just give you the number. Wait. Yeah. Just a sec.

15:55 Ladies and gentlemen, please stay connected. Ladies and gentlemen, we have the management connected.

17:02 Sir, you may proceed. Yeah. This is. Should I ask my question? Yes, please. Yeah. Sarda, my question is on the power, you know, on our power business. See, I... When I back calculate, I get that, you know, we have earned around 8 rupees a unit on an average for this quarter, which is quite a good realization. But I heard on the call that, you know, almost 378 megawatt of our power plant capacity is, you know, going to be on long term PPAs. And the rates there may be in that 5 to 6 rupees unit. So would our revenue from this power plant keep declining as we sign more and more long term PPAs? Hello?

17:48 I think there is some... There is some... Understand that our current period income also includes the previous year adjustments. So the average relation calculated by you is not a correct one. Okay. Okay. Reward calculation will not work because we have certain income for the previous period also. Okay. Okay. Got it. Sir, but then then going ahead, like, we should generally assume for the full year, like, 5 to 6 rupees a unit on whatever is generated and sold by us? Yes. Yes. Okay. Okay. Okay. Okay. Will be in between it will be in between this. Got it. Got it. And over a period of time, it will work. Over a period of time, as the inflation goes up and the peak demand goes up, this will increase particularly for the hydropower side.

18:41 Okay. Okay. Okay. Okay, sir. And just, you know, I think this summer, it... You know, it said that there was a lot of solar power in the daytime and which is why the daytime rates did not go up at all despite very high demand. So so as Sarda Energy, how do you see this whole situation of, you know, excess solar capacity coming and, you know, like, will it hit us or that is precisely the reason why we are doing these long term PPAs? No. As the solar is increasing at the same time, this is... BES is also coming up. And there will be certain policy changes at the government level also when they may also give concessional power tariffs during the hours to the industry or maybe charging assistance and all those things policy initiatives will also happen. So over a period of time, things will get better. But, yes, definitely for the present time, in... During the hour of the... Because of solar, power is excessive.

19:34 And during the peak hour, the gas has gone up. So we are getting much higher prices during peak hours. And peak hour period has gone up to... From five hours to maybe eight hours, ten hours like that. Got it. Got it. Got it. Okay. Okay. And in case of our hydropower, you know, wherever our hydropower projects are, is there enough water? Like, has it rained in the reservoirs which are there around our hydropower plants? In case of our large hydropower plant of 113 megawatt, we have generated higher than the last year. We are at even after closure of the unit for almost thirteen days. So, indirectly, we can check if we have generated better than the previous year. But in case of smaller hydropower plants, there was a shortfall of water because there was a delay in the rainfall.

20:23 Right. Right. Right. And then for So next quarter was hardly 1% lesser than the previous year. Yes, sir. But the next quarter, this, like, you know, this quarter is the largest for our hydropower. So I was just checking if, you know, there is. Know, Hello? There Yes. Please, can you repeat your question? Yes. My question is that, see, quarter two is the largest quarter for our hydropower generation.

21:08 So I just wanted to ask if have the rains come and is the water adequate in the reservoirs from where this hydropower will be generated? Yeah. Rents are good. And July, we are getting far better rest in the smaller hydropower projects also. Okay. Okay. Okay. Okay. Got it. And then my last question will be for this year, which is financial year '27, what will lead to, say, a growth in revenue or EBITDA? Because, you know, whatever projects we have on the coal mining side or in the power side, lot of them are probably going to come later on. You know? So is there any... Can we expect any growth in this current year? One will definitely be the improvement in the power price realizations.

21:57 Another is the improvement in the power capacity utilization in our IPP. These are two primary sectors and the... With the commissioning of our 30 megawatt power plant. There will be improvement in the generation. Got it. Okay. And then, sir, you don't see any improvement on the metal side, like, you know, any Metal side of production will go up with the commissioning of the 30 megawatt new power plant. Our capital power generation will go up. They will definitely help in increase production of the inside. Okay. Okay, Sarda. Okay. Thank you. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question.

22:44 To ask a question, please press star and 1 now. The next question is from the line of from Yes Security. Please proceed. Yeah. Hi. Very good evening, and thank you so much for the opportunity. So my first question is pertaining to the 110 crore impact on the net profit that we have witnessed this quarter. Just wanted to get a sense of, you know, if you could give me the number of what the actual impact was on the top line and on the EBITDA level. Yeah. In the top line, in the revenue, it was $1.62.64 crores was added in the revenue side. Okay. And There was a There there was an increase of about 18 crores on the other income in the form of interest.

23:39 Okay. That that is correct. At EBITDA level, it will easy... I'll just give the figures. Before tax, you can directly reduce end of 25% to the 110 crores. That is the EBITDA level effect. Okay. Net of tax. Right? Net of tax. Got it. So just just to follow-up, this 18 karat is the only number which is coming in to the other income because, you know, sequentially, have seen a good jump in the other income from roughly $4.05 karat. So No. 18 karat is basically interest awarded along with the tariff. So that is added in the other income.

24:25 Oh, okay. Got it. So my... That that is quite helpful. Yes. Thank you. Second question also comes, you know, pertaining to the PPS. So, you know, out of three eighty megawatts of PPS that we already have in place, how... What megawatt capacity would it be, you know, pertaining to SKS? Roughly 200 megawatts, if I'm not wrong? No. Three three thirty megawatt approximately. Okay. Three thirty for SKS. And would you be able to give us a sense on what the tariff would be? Everything in between five and six. Okay. Between five to six. Okay. And the maximum capacity that we are looking for PPS for SKS, is it going to be 400,500, or are we going to keep something as, you know, probably open quantity over there as well for sale?

25:18 Maximum sellable quantity is five forty megawatt. Okay. Sellable. So Now if I call, we have to take it to what extent we have to commit. Oh, okay. Sure. Got it. That is helpful. So one last question I had was on the mining front, the PPT states that we are going to be reaching a coal mining capacity of 7.1, which includes the 2.1 from Batunga. My question arises, you know, the 5,500,000 ton target that we plan to achieve. What all mines would be there? Is it Garipalma four by seven is what to be aiming for? And if you could also give me the timeline at which, you know, what procedures will be go from 1.8 to five?

26:07 So Gargano four by seven is 1,800,000 tons. Yes. One six million ton will be from Shapur West. Sharpur West. Okay. Point 6,000,000 will be from Sanduri approximate. This is provisional because it is under exploration. See, that may change. But assuming on the initial side, point six. And 2,000,000 will be from four by five. Okay. Got it. And and is it not... We didn't have Because in our presentation also, in our presentation, it's slide number one. All the details are made available. Yes. Yes. No. No. That that I'm aware of. I wanted to, you know, get a sense of... Because you were planning to expand Garipalma four by seven from 1.8 to five. I just wanted to get a sense of, you know, how that, you know, expansion is going to take place. No. As of now, we are not considering in the immediate future. That would... Because we have got no minds with the better quality of calls.

27:12 Okay. To the four by five. So for the four by 10. So for the time being, we are focusing on the new mines. Okay. And these new mines will be operational only post FY '28. Right? Not prior. But Sharpur will Sharpur will start in... By end of current financial year. By FY '20... By end of current financial year. FY '27. Okay. And and the coal from Sharpur West will be usable for our FK power plants? Or No. No. That will be for our Spanjama and Ferrolis plant because they did a high grade coal. For power plant, we don't require high grade coal. Okay. Just to clarify, Mano, all the new mines, they are all high grade coal mines. Okay? Got it. And is, like, already told, is starting in the current financial year.

28:01 And, we will open in the next financial year... End of next financial year. Okay. Thank you so much,. That... That's quite helpful. Yeah. That... That's also mine. Yeah. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of from NG Securities. Please proceed. Hi, Pankaj, sir. Could you share the latest... Hello? Yes. We can hear you. Yeah. Hi. Hi, Pankaj. Sir, could you share the latest update on the environmental clearance for the 600 megawatt brownfield extension for SKS?

28:46 And when do you expect construction to commence? So the study that is required to submit our TOR is already over. We are in the final stages of making TOR. And as soon as we submit it, maybe in another three months, they will accept it, looks like. And then maybe then we'll have to go for a public hearing or and post public hearing. So maybe we have another six months to eight months to get our final environment clearances. And post that, we'll be able to in the six to eight months, we'll appoint a consultant also for the same, and then all the procedures will start.

29:38 Okay. That was helpful. Yeah. Thank you. The next question is from the line of Rajesh Vandari from Nakoda Energy. Please proceed. Good afternoon, sir. Plant continue madam. We are expecting to complete by FY thirty one. Oh, FY thirty one? Yes. Okay. So so then we expect our turnover to be more than double, sir? Should be by that time.

30:26 Thank you. The next question is from the line of Ashish from. Please proceed. Yeah. Am I audible? Yes. Yes. So my question was regarding the second project. So that was a... This is a cater due to the transmission line. So has that project normalized post the restoration of the transmission line? And also, you expect any Yeah. But you think it's full capacity. So there won't be any... Is there any residual impact during q two, expected residual impact on q two? No, sir. It doesn't look like. Okay. That... That's it. That that would be it for Thank you.

31:14 Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. Participants who wishes to ask a question may please press star and 1 at this time. The next question is from the line of Ashwini from. Please proceed. Hi. Good afternoon. I just had one question. Steel prices remained range bound during this quarter, while ferro alloy prices had improved modestly. So how do you see the pricing environment evolving in the second half of FY twenty twenty seven? So both steel and ferroalloys prices, they look and they like we personally believe that they will be stable and the margins may look to be a little more decent in terms of ferroils and steel it looks that it will be stable. And if so that we have a complete settlement in the West Asia region, we might see prices also going up because there will be demand pickup and more stable production centers in West Asia region as well.

32:37 Okay. Understood. Understood. Also, I had one more question. What were the specific right of free challenges for the 50 megawatt solar project? And is there any execution risk beyond the revised commissioning timeline? Yes. Hello, ma'am. There is a railway line coming in that region for which they are acquiring lot of land. So we assume it has been notified already in that area. They are acquiring land. And I think so in next one to two months, we should get permission from the railways for the same. Okay.

33:29 Okay. One one last thing. I wanted to understand, like, guidance for PAT and EBITDA for FY twenty seven, if you could just help with that as well. Generally, don't give any forward guidance. We have beyond the industry scenario and our positions has already stated the current period, current quarter prices are also better. As stated in our opening address also, July prices in the power have been better. So we are in a volatile market. So giving any guidance on the specific numbers is not advisable. Okay. Okay. Understood. Thank you so much. Thank you. The next question is from the line of Vishal Patel from Patel Investment. Please proceed.

34:22 Hello. Firstly, congratulations on good set of numbers, numbers, and thank you for the opportunity. So I have a couple of questions. First is, excluding the impact of one off items during quarter one, how should we think about the normalized quarterly EBITDA run rate over the balance of the FY twenty twenty seven as operational? So second quarter is definitely better because of hydro generation. And we as stated, power prices are better, have been better in July, at least, whatever has already gone up. Gone. As I get last year, 4 rupees 20 paisa. This year, it was 5 rupees in IX itself.

35:08 So we expect the power prices to be better. Beyond that, it's very difficult to comment on the profitability side. Otherwise, as I already stated, with the commissioning of the 30 megawatt power, our steel volumes will also go up. Okay. Sure. So my second question is, with improving power demand and additional PPA, how do you see PLFs and merchant realization evolving over the next few quarters? PLFs should definitely if you see PLF at the annual level, PLF for the whole year for IPP should be better than the previous year. This is what we expect. Last year, I think we had INR $4.15 crore units or so.

35:57 This time, we should be able to cross that with a reasonable margin. Okay. Sir, could you quantify a little bit about this? Pardon? Could you quantify as in just surpass or, like, with a healthy growth? As I stated, in case of ITP, last year, we had generated about INR $4.15 crore of units. This year, generation will be better than the previous year. Okay. And in case of also with the commissioning of the 30 megawatt new generator, our capacity utilization will be better as compared to the previous year. In case of hydro, it depends solely on the rainfall.

36:46 And as of June, our generation was almost 8% with the previous year. Okay, sir. Sure. These answers my questions. Thank you so much. Thank you. The next question is from the line of from Edge Securities. Please proceed. Hello. So, sir, with most of your major projects progressing as planned, what do you see as the biggest execution risk to achieving your f y thirty growth road map? No. This is the biggest risk. As of now, there is no material risk we see, except there may be slight here and there because of the regulatory approval.

37:39 Otherwise, more or less the things are moving as what we have planned. Okay. Okay. Yeah. This answers my question. Thank you so much. Thank you. The next question is from the line of Rina Gore from Starlomi Investments. Please Hello? Yes, ma'am. Thanks a lot for the opportunity. Hi. So I just have two questions. One was now now since everything is on track, like, 30 megawatt turbine replacement is commissioned, the Hydro project resumes normal operations, and the maintenance shutdowns have also concluded.

38:27 What do we expect earnings in q two, like, becoming half yearly for FY twenty seven? As stated, we don't give any forward looking profitability because it would depends on a very... Variety of factors. Rainfall data, power demand supply. There are multiple, and in case of steel also, price are volatile because of the developments. So giving any specific number will be very difficult, but we have already stated on the operational front, we have already clarified. Operationally, it should be better. This is what we can tell. Okay. And on... And also on those steel prices, the steel prices remain range bound during the quarter while ferroalloy prices improved modestly.

39:20 So going forward, how do you see the pricing environment evolving in the second half of FY 2027? The prices will remain stable for both ferroalloys and steel. And in fact, the margins may be a little higher in the ferroalloys segment as we are seeing some softening of raw material prices. And for steel, I think once the West Asia matter is completely settled and they have a peace accord which is in reality in place, then we might see some uptick in the steel pricing as well. Great. Plus overall the steel demand looks to be very good because of domestic developments as well. Have very strong and robust domestic demand and with new developments of data centers and many other infrastructure projects, especially after monsoon, we see that the prices go up.

40:16 Understood. Understood. Got it. Thanks a lot. Sorry. That's all from my side. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Man from Investment. Please proceed. Hey. Hi. Hi, sir. Thanks for the opportunity on doing this call. So I wanted to ask you on the Arunachal project. So actually, the most of the approval has been received for 66 megawatt. So when do you expect construction to begin? And what do you think will be the expected assignment for it? So we are undergoing all the drilling and soil investigation, and we have also appointed a consultant.

41:07 So as soon as those datas are available, detailed engineering will commence. And then do you expect around this year or from beginning of the This year, This yes, year, I think. Alright. Okay. Okay. I think that's pretty cool. Thank you. Thank you. The next question is from the line of Priyansh, an investor. Please proceed. Mr. Priyansh, your line has been unmuted. You may proceed with the question. Hello. Yeah. I'm sorry. Thank you for having me. I'm sorry if this question has been asked already, but I wanted to know that regarding the transmission tower that was recently lost.

42:01 What is the loss that has been incurred in electricity reservation pertaining to this? And consequently, what is the additional cost that was incurred to build it again? And are there any, let's say, steps in place to prevent this from happening again? There is no material cost incurred on the restoration of the tower. Normal cost is incurred and then most of that will also be covered except the minimum excess flow that will be covered through insurance. Yes. But whatever generation we have lost for a few days, that was the real loss what we have incurred, which is already covered in the first quarter results broadly because 06/06/1960 started again. So there is an impact of five days generation in case of July. Otherwise, everything is already covered and amount is not substantial. Restoration cost is negligible and that is also fully covered in the insurance.

43:01 Okay. Got it. Thank you. And my second question was regarding the mineral wool project. What was the revenue of the mineral wool? And what is the sales and EBITDA target of mineral wool for the Q2 and the full financial year FY 'twenty seven? Maniji? Maniji? Could you repeat the question, please? Sure. My question second question is regarding the Minerals Pool project. So what was the revenue of Minerals Pool? And what is the sales and EBITDA target for the same for Q2 and the full financial year 2027 FY 2027?

43:47 So we have started and ramped we've been ramping up our production in the mineral wool. And in mineral wool, we are now touching almost 60%, 65 of our capacity. And once we achieve the full capacity in the coming year, in the next three to six months, we'll be achieving that full capacity, we should be able to give out the exact numbers. Right now, we are still identifying few issues and we are trying to resolve those issues. So right now, the project is not making any profits at the moment. Got it. But is it making sales or not at this moment? Yes, yes. Huge demand. There is a huge demand and there is we are making good sales. In fact, are lagging in sales. The demand is more and our production is not ramping up due to certain imported equipments and machineries, which are stuck due to West Asia crisis and all. But we should be getting that in order and probably in the next six months, we should be achieving full production.

44:55 Okay. But do we have any revenue figures right now? We are expecting '27 for the year '27, we should be achieving around INR90 crores. INR90 crores. Okay. And for Q2? For Q2, we are it's very difficult to comment right now. Okay. So the projection is the capacity utilization should ramp up from... It's ramp up in the next yes, in next two quarters, and we should be able to Okay. Achieve in FY twenty seven anywhere between 90 to 110 crores. Thank you, everyone. That was the last question. Thank you everyone. Thank you management speaker. On behalf of Sarda Energy and Minerals Limited, that concludes this conference.

45:43 Thank you for joining us and you may now disconnect your line. Thank you.