SPML Infra (NSE:SPMLINFRA) Q1 2027 Earnings Call

0:01 Ladies and gentlemen, good day, and welcome to SPML Infra Limited Q1 FY 'twenty seven Earnings Conference Call hosted by Artyom Capital Markets Please note that this conference is being recorded. I now hand over the conference to mister from Indian Capital Market Limited. Thank you, and over to you, sir. Hello, everyone. Very good afternoon, and welcome to SPML Infra Limited quarter one FY twenty seven earnings conference call hosted by RIM Capital from the senior management.

0:48 We have with us on the call today mister, executive director and CFO of the company. Mister Malay Chakrabarty, EVP and projects. Mister Sameer Patel, chief operative and technical officer, BSS and Mr. Vice President, Finance and Accounts. Before we begin the earnings call, we must remind you that the decisions on today's call may include certain forward looking statements and must be, therefore, moved in conjunction with the risks that the company faces. I would now like to hand over the call to the management, Mr. Arun Agrawal, for his opening remarks. Thank you, and over to you, sir. Good afternoon. Good afternoon, everyone and thank you for joining us for the SPML Infra's Q1 FY twenty twenty seven earnings conference call.

1:40 We sincerely appreciate your continued trust and interest in our company. So to begin with, as we begin FY 2027, India's infrastructure sector continues to evolve from capacity creation towards capability building with water security, grid modernization, renewable energy integration and energy storage emerging as fundamental pillars of the company's development goals. For SPML Infra, this evolution aligns closely with our long standing strength. Over four decades, we have built deep execution capabilities across water and power infrastructure. And over the past two years, we have transformed the company through disciplined bidding, balance sheet strengthening and strategic investments into emerging segments.

2:27 Investment now beginning to translate into execution and scale. Now let me briefly touch upon the industry environment. India's energy transition presents an equally compelling opportunity. The union budget twenty twenty six-twenty twenty seven allocated INR 109,029 crore to the energy sector, driving investments in transmission and grid modernization as renewable energy capacity expands over 100 gigawatt of base tenders have already been floated against a projected requirement of two thirty six gigawatt by two thousand and thirty one-two thousand two, one of the most significant infrastructure opportunities of the next decade. Water remains one of the India's most critical infrastructure priorities with over 81% of rural household now covered under the Jaljivan mission. The government has extended the mission to 2028 with a INR67670 crores union budget allocation and restructured it into JGM 2.0 with a total outlay of INR8.69 lakh crores.

3:36 Alongside Amrut 2.0, Namami Ganges and river linking programs, nearly INR 17 lakh crores of planned government investments across water infrastructure is expected to create a robust pipeline over the medium term. Against this backdrop, SPML continued to make meaningful strategic progress during this quarter. Our order book today stands at approximately INR5100 crores, providing healthy medium term revenue visibility. More importantly, the quality of order book continues to improve significantly, only around crores also relate to legacy projects, while the balance consists predominantly of projects carrying expected operating margins of 10% or higher. A sizable volume of business has started coming in from drinking water, irrigation, river linking, sewerage, power substation and base, And the company is hopeful of surpassing its guidance of more than INR 5,000 crores in order intake in the current financial year, against which we have taken INR $12.93 crores order in Q1 and are L1 in INR $2.65 crores of orders.

4:52 On the manufacturing front, we continue to make encouraging progress at our battery energy storage manufacturing facility at Supa MIDC Pune. The first phase of our 2.5 gigawatt assembly line is fully ready. The company has also started obtaining various certification from IEC UL for its battery pack, which are required for supplying the container to NTPC against its current order and we are targeting to build the NTPC in Q4, subject to requisite approvals. The line will subsequently be scaled to five gigawatt together with an annual manufacturing capacity of 600 container units to cater to future orders for battery packs and containers, for which the company is continuously bidding and approaching various EPC contractors as an OEM player.

5:41 We expect the capacity enhancement from 2.5 gigawatt to five gigawatt along with the container facility expansion to be completed in the first half of FY twenty twenty eight along with the orders for the Aposhed facility, which addresses a market potential of two zero eight gigawatt by 2,030, up from 34.72 gigawatt in FY twenty twenty seven. Tender in this space are coming in continuously and the company participates on a regular basis based on its selected criteria. The company holds a competitive advantage over other base players on account of its manufacturing facility and exclusive technology partnership with Energy World U. S. This facility positions SPML as one of the early movers to manufacture advanced grade scale battery energy storage system under the government's Make in India initiative.

6:33 Turning to the status of our NTPC order, the advantage has already been received from NTPC. Design and drawing approvals are expected to be completed by QC FY twenty twenty seven. We anticipate the sample container being approved by NTPC by December and subject to their approval, we will commence supply of container to NTPC in Q4 and the same will be completed within their contractual timelines of FY twenty twenty eight. On the water and power front, we track a pipeline of about 134 upcoming projects worth close to INR98725 crores across 11 states with irrigation and water supply making up over 80% of this value, reinforcing water infrastructure as the biggest growth driver in the public CapEx cycle.

7:21 Key projects include the Vanganga Nalganga River link of around INR 1 lakh crore, Marathwara water grade INR 37,600 crores, Ken Betwa Links, MP component of INR 24,300 crores and Trapi Desil Mega Recharge King of INR 90,200 crores. Additional tenders are progressing in Bihar, Odisha, Alstom, Gujarat, Kerala and the Northeast along with the PSUs like Steel Authority and NMDC. We have significantly improved our financial position through discipline, deleveraging and strong promoter support. Our promoters have infused approx INR400 crores during the last three years, helping our network double from approximately INR500 crores to over INR1000 crores, while our debt to equity ratio has improved from 1.1x to 2.4x now.

8:13 Our legacy debt position also continues to improve. Of the total outstanding obligation of around INR700 crores, we have already repaid around INR325 crores with the balance INR375 crores fully backed by an arbitration award of approximately INR678 crores along with accrued interest. In addition, the company has arbitration claims of around INR4526 crores with nearly 40% accepted to convert into awards over time as per the past experience and records. Reflecting this transformation, ICRA has upgraded our long term regime to BBB stable simultaneously, Christine has also assigned us an BBB stable on our credit facilities.

8:58 We have also enhanced our credit facility of INR $50.05 crores to INR $8.60 crores from reputed PSC Bank, the documentation of which is under process and approx INR300 crores surety bond line ensuring adequate liquidity and sufficient banking limits to support our growing order book and larger project opportunities. Coming to our financial performance, revenue grew 74% Y o Y to INR $2.86 crores, EBITDA increased 81% to INR 28 crores and PAT increased 87% to INR 22.7 crores. EBITDA margin improved to 10% in Q1 FY twenty twenty seven from 9% in the corresponding quarter last year. On a Q on Q basis, revenue remained largely flat, while EBITDA improved 17% over Q4 FY twenty twenty six. Pike declined 20% Q on Q largely on account of a one time tax reversal in Q4 FY twenty twenty six numbers.

9:58 The company has made a jump of around 74% on a Y on Y on the turnover, mainly on account of execution of new orders obtained in SPML 2.0. The company is maintaining the turnover of the preceding quarter as the turnover is mainly related to orders which was taken in the last two years for which all the design and drawing approval have already been obtained, which shows consistency in the project execution. With the allotment of new orders and the expected orders that we are targeting in water, power and base, whose impact will reflect mainly from Q4 of twenty six percent, 27% by which the company is maintaining its guidance of an increase in turnover of more than 25% compared to the corresponding period in the last financial year. The company has made a similar percentage improvement in the profitability of around 87% on a Y on Y basis.

10:51 The percentage of profit compared to the last quarter has also improved slightly because of a higher contribution from the new orders. The company maintained its guidance of growth of more than 25% in the profit compared to the last financial year. There is a reduction in other expenses mainly on account of reduction in legal and professional charges. The company realization from various projects is reasonably healthy due to which company was able to manage a healthy E and P position of around INR150 crores as on June 30. The company will continue to manage its working capital requirement through an mechanism in the water sector with the suppliers, which reduces the working capital requirement substantially. However, the company is very comfortable regarding our ABL realization from all its projects due to which sufficient liquidity is there in the bank by way of fixed deposits.

11:42 The employee cost has increased due to the recruitment of new employees for the water, power and base operations. The finance cost includes interest on mobilization advance of INR3.5 crores, INR 63 lakhs on account of PG commission and INR 27 lakhs towards the India's adjustment on ROE assets. The mobilization advance gives the company additional surety on the realization from the projects rather than the funding requirement as the company is having sufficient FD balance in the bank account. With a stronger balance sheet, a significantly improved order book, expanding capabilities across water, power transmission and battery energy storage system and a clear execution roadmap, we are well positioned to participate in India's next phase of infrastructure development.

12:28 With that, I would like now like to open the floor for the questions. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question, you press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, please wait for a moment while the question queue assemble. The first question is from the line of from Asset Manager. Please proceed with your question.

13:20 Good afternoon, sir. Thank you so much for the opportunity. So my first question is that our order book is about... For new orders is about 3,843 crore. So I want to understand this is excluding our JV partner's share? No. This is basically our share in the JV orders. This includes there. So how much is excluding their share? So all the JV, because it's a different JV on to different percentage. So some are 26%, some are 51%, 49%. So our share, we have included in this 3,800. So this is a partial. This has not improved the JV's Okay. Share. Yeah.

14:05 Also, sir, since we're looking at... You know, margins are improving and about 9.9 right now. So am I right to believe that in coming time, we'll be, you know, targeting 12% of margins as the new orders increase? As we explained into our previous con call that as a strategy, at this moment, we don't take any order less than 10%. So it is always more than 10%. Like, at the moment, the three orders which we have taken, Kunar, K3, and Indore, all are more than 10%. So you can you can jolly well estimate that any order which we win at this moment, the profit margin, EBITDA margin, or the margin from the project will be more than 10%.

14:58 Sir, also, sir, are we looking to execute this on legacy orders? I think it's worth 1,251. I believe that we can execute this by FY twenty nine. This will be this year and next year, most most of the legacy order will be executed. Okay, sir. And, sir, one more last question. So for our best, sir, since you mentioned that for NTPCR drawing approval and everything will be done by... In December this year. So, sir, what what kind of numbers are we expecting to book in the venue with respect to BESS? What what is an approximate amount? Any any of our orders, basically, time... Mostly time is taken by the designer. It's all our design drawing approvals orders when we take on to the EPC. So depending upon three to eight, nine months, that's required for the approval of all the design and drawing. And then as per the schedule, we'll keep on delivering.

16:01 So if everything goes right, then we can expect 200 to 300 per word of base order execution into this financial year. The next question is from the line of an individual investor. Please proceed with your question. Yeah. Hi. Thank you for the opportunity. So my first question to you, sir, is that what is the FY twenty seven revenue target and quarterly run rate? As Arun has already told, and it is our previous all the con call, we are maintaining that we will have the revenue guidance more than 25% into the last year. It will be more than revenue, maybe more than 30% will be from the last year or more than that.

17:00 And this corresponding, the profitability will also be. So every quarter with the new orders, we will keep on updating, but the revenue growth both on the profitability and on the turnover will be more than 25%. Okay. Got it. And my next question is that how much of the INR 50 crores to INR 100 crores FY 'twenty six spillover has already been billed in Q1? Pardon? Sir, much of the 50 to 100 crore f y twenty six spillover has been... Has already been billed in quarter one? It's a regular practice. If you see, that depends on basically with the... It's it's a government order and there are various things linked based on the cash flow availability of to that project.

17:58 We keep on making the billing to the customer. So the whatever INR 50 to 80 crore which we missed into the last year will be quarterly spread into this quarter and throughout the year. Okay, got it. And my another question is that how much best revenue will come in FY 2027 and what will be the margin for it? As I told you, any orders which we are taking not less than 10% margin. And second question is the design drawing approval is under process. We are submitting all the drawings. We are expecting all the approval to be obtained from the NTPC by December.

18:46 So in the Q4 we will have orders, execution from the base unit, maybe INR200 crores to INR300 crores is our targeted subject to getting all the approval from NTPC. Okay. Okay, sir. Thank you so much. Thank you. The next question is from the line of Kushi Solanki from KA Securities. Please proceed with your question. Hello. Hi. I'm. You are, ma'am. Yeah. So I wanted to ask what is the current status of NTPC, and when does the billing start?

19:34 Again, this is the design drawing approval. So NTPC, we have executed all the drawing all the documentation agreement. We have received the advance from the NTPC. We have given all the surety bond, which is required for the performance and for the advance guarantee. The approvals are started coming. We are expecting the approvals to be completed by December. Once the approval will come, we will start giving delivery of the container. So we are expecting some revenue of the base INR 200 crores to INR 300 crores in the Q4 subject to approval of NTPC. All the design drawing and the draft container, which basically they will model container, which will show them.

20:29 So that's our target into this financial year of the NTPC order. Okay. Got it. And one more question. How much additional CapEx is required to execute the current order book and BESS expansion? BESS, we have already informed that the total BESS five gigawatt and the 600 unit container, the total requirement is INR $2.36 crore, which we have already financed. We have raised the equity and the equity money is lying into the bank account. We require the container INR 10 crore term loan that also we got the sanction.

21:14 So all the requirement of the funding is there into the system for which we don't require any further things into that. And for the BESs, all the LC limit and the working capital we have already there in the sanction limit with the banks. So I don't have any issue into execution of that also. Okay, sir. Got it. One last question I wanted to is the one constant that could prevent SPML from achieving more than 25% growth in FY 'twenty seven? I... It's it's the same risk like we carry when we come out from the home and the road accident risk we have. At the moment, we have all the all the design drawing approvals are there for all the new orders which we have obtained.

22:12 NPPC design drawing approval has started getting. My base container facility, this relining facility has already commissioned. So I don't have 2.5 gigawatt, I don't have any problem. So the logical, we don't have any issue by which we will not have the 25% or more growth into the top line and bottom line. I'm not finding any reason of not having any logical reason. If anything happened which is beyond anybody's imagination that I'm not able to predict. The next question is from the line of Yashvi, an individual investor. Please proceed with your question.

23:10 Hi. Thanks for giving me this opportunity. My first question is how much of FY 'twenty seven revenue will come from the existing INR 5,000 crore order book? As I told you, more than 25% growth will be there into the revenue. Base revenue will be roughly around 200 to 300 crore. Rest is into the water. My question is...... Existing order. Because this year, whatever order we will take, very limited revenue will... You will reflect into the last quarter because now whenever... Whatever order we will take, it's required the design drawing approval. So you will get some revenue from the new order in the q four.

23:57 Waste will go to the next year. Okay. And what is the actual FY twenty seven EBITDA margin target excluding one off? 27. This year? Yes. This year, as I told you, it will be more than 25% both every in all the field in the turnover, in the EBITDA, in the PAT, it will be more than that. So based on the keep on order and execution, we will keep on updating in every con call. Okay. Thank you so much. That's it so much. Thank you. Thank you.

24:43 Ladies and gentlemen, anyone who wishes to ask a question may press star and one now. The next question is from the line of, an individual investor. Please proceed with your question. Hi, sir. Thank you for taking my question. I just wanted to know about the BESS project. Are we doing it exclusively for NTPC, or any... Are there any other approvals in line as well? No. BESS, we are taking... This BESS, we are setting up the relining at lining at this manufacturing facility, which is for everyone.

25:28 It will be fetched to our EPC requirement for the BESS order, which we will receive. It will give the OEM requirement of the other BESS contractor who get the BESS order. So this will meet the... Both the requirement into that. Then the container facility which we are creating that will be also for our BESS order or for to the outsider. So this BESS manufacturing activity will contain both the facility. So the revenue stream will be from both the side. One, as EPC, whatever order we are getting like NTPC we have got and future we will further get the order. As an EPC player, we will get our battery packs from you will be utilized for our EPC unit and any other EPC contractor who get the BESS order, we will supply as an OEM to them also our battery pack.

26:29 So there will be two x revenue stream. So, sir, regarding this... I mean, regarding our BSF project, what you're saying is, so the battery will be... That will be... Will procure from energy world, and then we'll put it in the battery packs... Our battery packs. Is that Technology is energy world, and the sale we are importing from China, converting the sale to battery pack to our unit, That battery pack is utilizing into the container, which will be our order container or any other EPC order, which any other contractor are getting. The same battery pack can go there also.

27:22 So that's the sale everybody is importing from China. So we will also import, but our container will be the energy wall technology. Okay, right sir. And so probably, we'll we'll start having revenue from last quarter of this year and next year, we might have... I mean, we might be utilizing the full capacity that we have. So expansion plans would start then and there or how will it go about? Expansion plan as we have told into the opening remarks, there is a huge huge opportunity into the BSS. There is a huge requirement, there is a huge government outlay is there and it is continuously increasing.

28:11 So a lot of tenders are coming. So this battery pack capacity enhancement of from 2.5 to five gigawatt, we have already started. That will get completed into the first quarter of the next year. Container manufacturing already started and that and we will keep on getting the orders. We will keep on getting the orders and that will be utilized. So already we have done it. It is not linked with any other future order. Thank you, sir. And just one more thing if you can guide us, like, what is the per megawatt revenue that we can generate from the start? Just a ballpark figure will do? Basically, if it is a 2.5 gigawatt, it is revenue guidance will be between INR 2,000 to INR 2,500 crore.

29:07 If it is a five gigawatt, it is roughly around INR 4,500 to 5,000 crore. Right. Is the potential revenue generation from the BSS plant. And I mean, in this, the capacity can be utilized only or will there be around 70%, 80%, 90%, some kind of figure of utilization? The kind of order we are getting and with the kind of market availability is there, we are expecting a sizable growth on the capacity utilization into the current year and next. Current year, so we will start the NTPC order, we will execute with that. Next year, we will have a good utilization of our 2.5 gigawatt, mainly one gigawatt NTPC will be utilized.

29:54 And then the new order, then the base order. We are expecting a sizable capacity utilization in the next two to three years into the base capacity. Yes, sir. And going going down, I mean, will our focus change from water driven projects to BESS or will it be balanced? We have three three segment, if you see. Rather two segments. One is the water. Water includes the drinking water, irrigation, river linking, sewerage, all these things are the water. That is one segment. Second is the power substation, where we are there is a huge demand and growth into the power substation because lot of higher thermal power has started.

30:47 The substation modernization process is going on, like sale is coming in a big way. There is other players are coming into the way the government has started upgrading their base substations. So that is our power EPC and then the battery. Battery, we will have our own battery pack EPC business and OEM business. So battery will be one, power service station will be second and water will be the third. Yeah. So so I was asking... I mean, will we be focusing on all the segments? All the segments. Will it... Will we be Battery battery because it is a it is a new generation and more demanding.

31:34 So I'm expecting and it can execute it much faster. So you will find more revenue from our BESS unit than the power because any water project, it takes three years to three and a half years to complete. If any battery project, it will complete into eighteen months. And if it is as an OEM player, it will be completed. Our battery pack requirement will be into three months to four months. So you will find more and more revenue generation from our battery. But our focus will be all the three. Great. Thank you. Thank you. The next question is from the line of, an individual investor. Please proceed with your question.

32:24 Hello. Sorry. Thanks for taking my question. I was looking forward for the battery imports that we may do for the battery price. Given the dollar devaluation of rupee, has it impacted for any of those purchases that we would do for the batteries sales? And the second thing is on although there is a sizable opportunity for this, what are the challenges of the competition that may get into this? Thank you. On the first, we as a strategy, we have made very clear that we will keep the PV clause in all the contract.

33:14 So any upgrade because we have the expertise on execution and we will take a call on execution. Rest of everything, whether it is a steel increase, whether it is a dollar increase, whether it is a lithium increase, all we are covering into the PV clause. So we are keeping ourselves aloof into that. We don't want to earn, we don't want to lose into that. Our expertise on execution and we will keep on focusing on our execution. If there is no PV in any contract as a SPML 2.0, we have targeted not to take that order. So aloofing me from any fluctuation into any of the product which are utilizing in our EPC.

34:00 So that's replying your question number one. Question number two, what was your view? On the competition, although the opportunity is very large, but what SPML Infra would be doing different than I think about Page Digitech or any other company who want to be into EPC? And one more follow-up question on top of it that are we looking forward for the commercial and industrial usage of this as well to get businesses orders from there because it looks to be a very large opportunity there as well. I think Sameer will able to tell better that what additional advantage we have because we have the only company which has the technology tyre. We are one of the limited company which have our battery pack unit ready and started, and we got the largest order. But, Sameer, if you can if you can add value in this?

34:55 Yeah. Of course. Of course. So with the tech partnership, what we are getting is multiple portfolio of technologies. It's not just current fiscal model year technology. So India is kind of demanding five megawatt hour DC block systems for this year. But when we think about the future proofing and the road mapping of the technologies, you'll see that next year, it's going to ramp up to 6.25 or 6.9 megawatt hour DC blocks, which are a lot more cheaper than today's five megawatt hour DC blocks. So we get those technologies as part of the handshake. On top of that, we also have other technologies, which is not related to the batteries.

35:43 These are things like the hydrogen systems or the gravity fed systems or the sodium ion systems. So you can see that whatever our partner is going to develop, we are going to get those technologies, you know, which are already commercialized. And on top of that, this current handshake also allows us to, you know, ensure that NPPC is happy with provenance criteria, which Energy World already meets as a prequalification. So it makes us easier to communicate with NPPC for the future technologies as well. I see. And what about the commercial industrial usage of BEST? I think that could expand it. I mean, think about the sensors could get just replaced with that.

36:38 Okay. So from a commercial industrialization standpoint, this best technology is purposely targeted for grid applications. Saying that, we are also working to see how we can transit this technology to upgrade solutions, which we already have the technology for 4.17 megawatt hour platform shared by Energy Corp as of last year. So we are ready to deploy both AC block systems, which is pretty into C and I market and DC block system, which is going on to the higher large scale project. Okay. I think that means that is already in a pipeline of discussions on it. Okay. Thank you, sir. Yeah. We are starting the pipeline.

37:27 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 one to ask a question. The next question is from the line of from AG Capital. Please proceed with your question. Hi, sir. Can you please comment on the full year guidance? And how do we see order bid pipeline in water and the competition intensity over there? As we told that this year our guideline for the order will be INR 5,000 crore, out of which roughly around INR 1,200 crore we have already received in the Q1.

38:14 We are L1 into R230 crore, R240 crore. So we will and there are a lot of orders which are coming into the VSS, power service station and into water, water including drinking water, irrigation and river linking. So we are expecting our order book target to be satisfied or surpassed more than INR 5,000 crore into this year, but our target into this year is 5,000 crore, which is our categorized contract where we have margin of 10%, where we have PV, where we have all the conditions funded project and where we can do the mechanism. So our criteria project, we are getting more than INR 5,000 crores.

39:00 And if you see in the EPC, whenever you get the order, it is required three to six months to complete the design drawing and then the execution. If it is a water then it will execute it into three to three and a half years. If it is a power service station it is fifteen months to eighteen months. If it is a base, it is again eighteen months is the period and if it is a base OEM, it will be three to four months. So based on the order, we will keep on having our execution and turnover. But as a guidance, our turnover from the last year more than 25% both in... And then the EBITDA will... EBITDA and PAT will also be more than 25%.

39:46 That we are targeting. And every quarter, we will upgrade that based on the order book position and the execution. Okay, sir. And are we bidding for any projects in Amrut? Yes. Yes. Our our indoor project is Amrut project only. Amrut is a good scheme, and we are projecting all the funded. We are there. Okay. Okay, sir. And my last question is, like, regarding NARCL. What is the status as of today and how much are we planning to repay in this fiscal? NARCL, the total, however, inclusive of interest was INR700 crore of our liability on which we have already paid INR320 crore, which includes INR45 crore prepayment that we are from the beginning, we are prepaying to the NARCL.

40:39 All our balance, INR375 crore are linked with the arbitration award. We have roughly around 50 crore of arbitration award where we are accumulating the interest on daily basis, whereas our NARCL is inclusive of interest of roughly around INR $3.75 crore we have to pay. We are targeting few arbitration award also into this financial year that will further reduce our liability to the NARCL. So we are expecting roughly around INR 300 crore of left NARCL payment after the completion into this financial year.

41:25 Okay, okay. Thank you, sir. Thank you. The next question is from the line of, an individual investor. Please proceed with your question. Hi, sir. I just had a follow-up. So regarding the you know, when we supply, we have documentation and all, and there is a whole process before we supply to NGPC. So I guess having a tie up with energy world, do we have an advantage over the timeline of the... Do you know the the... Like, is there any advantage of having... Having a tie up with Energy World in terms of getting approvals from NTPC?

42:18 Provenness test is the live example because that's the highest test which the NTPC has to approve and that is where the energy vault presents gives us the tremendous advantage and that will give the comfort to the entire ESS industry when it will be approved by the NTPC. So that's the major advantage. The technology is fully tied up so that gives us the various design drawing approval, helps us in various design drawing approvals. So definitely if you are a tied up technology which is a proven one, you will have lot of advantage into any execution, into any order.

43:04 So we are getting that benefit. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Vivek, an individual investor. Please proceed with your question. Hello. Yes, Vivek. I wanted to ask with the growing demand in best industry, are we looking forward to expansion beyond five gigawatts in longer term? Definitely it will be, but at the moment we will first utilize 100% our five gigawatt, which we are targeting by 2029 or 2030 to utilize the entire five gig out very efficiently.

43:56 And then we keep on expanding based on the there is a whose business opportunity into the BESS. And we, as Sameer has told, we have the added advantage into this industry because of the first mover, first tie up of the technology and the plant setting up here, and then the EPC knowledge which we are carrying from last forty five years. So we have tremendous advantage sitting on the BESs. So based on the demand, based on our capacity utilization, based on the order, yes, we will further plan to expand our capacity beyond five. But at the moment, we have not discussed this matter into our board level, so I don't want to comment. But we keep on commensurating with the business opportunity which are available, and we will keep on expanding our capacity.

44:51 And, also, my second question is that why... When we'll advance, whenever it may be, will we be also looking to acquire some land for it for the factory or the expansion will happen within the current factory or what? If you see $2.36 crore, the total we have acquired 25 acres of land. That 25 acres of land is not required for my five gigawatt or for my container facility. It's much more land because getting the land to the adjacent area is very difficult. So we have taken the larger area, looking into our future growth into the BSF facility and container facility.

45:44 So we have sufficient plan for our growth purpose. Okay. Okay. Thank you. Thank you. The next question is from the line of from extension research partner. Please proceed with your question. Yes. Hello. Good afternoon, sir. Am I audible? Actually, sir question company potential Hello?

46:37 Yes. Yes sir. Who I dump... Dumping yard? Sir, dumping yard government tender best management to recently 2,030 government votes are a best management voter management regarding projects for Niqal Dreher? Tender involved Now we have to see the criteria whether it is meeting our requirement and then we will definitely keep on participating into that. It's a regular online activity every month we are participating into more than INR 10,000 crore of tender.

47:32 So you have to participate opportunity opportunity So we keep on participating. And Gujarat is our preferred state. Okay. Thank you. Thank you. Participants who wish to ask a question may press star and one at this time. Ladies and gentlemen, that was the last question from the participants. I would now like to hand over the conference to management for their closing comments.

48:22 Thank you. Before Arun close the comment, I would like to thank to Arihane for coming out the report today, and it's capturing most of that aspect very properly. Now Arun, on the contrary. I would like to once again thank all of you for your continued interest and confidence in SPML Infra. This quarter reflects the tangible progress of our transformation journey, a stronger balance sheet and improved order book quality, encouraging momentum at our base manufacturing facility and consistent execution across our water and power projects.

49:07 We remain firmly on track with our guidance for the year and are confident that investments we have made over the past two years will continue to translate into sustained growth in scale and profitability. We look forward to updating you on our continued progress in the quarter ahead. Thank you once again for joining us today and I hand over the call back to the moderator. Thank you. Thank you. On behalf of Aryans Capital Markets Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.