管理層發言
Thank you for standing by, and welcome to the ReNew 1Q FY'25 Earnings Report. All participants are in listen-only mode. I would now like to hand the conference over to Mr. Nathan Judge. Please go ahead. Yes, thank you and good morning everyone and thank you for joining us. We put out a press release last night announcing our results of the fiscal year first quarter 2025 ending June 30, 2024. And a copy of the release and the earnings presentation are available on the Investor Relations section of ReNew's website at www.renew.com. With me today are Sumant Sinha, Founder, Chairman, and CEO; Kailash Vaswani, our CFO; and Vaishali Nigam Sinha, Co-Founder and Chairperson of Sustainability; and Anunay Shahi, SVP, Corporate Finance and Investor Relations. After the prepared remarks, which we expect will take half an hour, we will open up the call for questions. Please note our Safe Harbor statements are contained within our press release, presentation materials, and materials available on our website.
These statements are important and integral to all our remarks. There are risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. So we encourage you to review the press release we furnish in our 6-K and the presentation on our website for a more complete description. Also contained in our press release, presentation materials, and annual report are certain non-IFRS measures that we reconcile to the most comparable IFRS measures. And these reconciliations are also available on our website in the press release presentation materials, our annual and Form 20-F. It is now my pleasure to hand it over to Sumant, who has been recently appointed as a Co-Chair of the Alliance of CEO Climate Leaders.
Yes, thank you, Nathan. Good morning, everyone, and glad to have you all on our earnings call today. Last quarter, we had a slightly different format where we talked about our long-term outlook and our vision. I thank all of our investors and stakeholders who appreciated the effort and clarity on the long-term vision. Turning to Page 5 of the presentation, last year we kick-started our journey of doubling our operating portfolio by 2029 by winning more than 8 gigawatts in auctions. Of these wins, we have already converted 2.2 gigawatts into Power Purchase Agreements (PPAs), with the majority expected to be converted over the next few months. While we pursue this growth, we will continue to be focused on shareholder value creation, accessing only the cheapest sources of capital, and exploring avenues wherein the returns are materially above our cost of capital. Our recent auction wins are expected to generate returns higher than the historical average, and we expect the trend to continue given the robustness of the auction market.
We also recently filed our annual 20-F for fiscal 2024, wherein we are in compliance with SOX requirements. In addition, we are steadfast in our ESG commitments, and our debut integrated report is a testament to the standards that we benchmark ourselves against. In fiscal 2025, we expect several of the unsigned PPAs to be signed, providing us with an even clearer path beyond the current 15.6 gigawatt committed portfolio, along with full clarity on execution timelines. Furthermore, given the terms at which we have secured the pipeline, lower module prices, and supply chain security, as well as given our conservative assumptions, we expect to generate better returns on the current pipeline of projects than the ones that we have executed to date. Moreover, we will continue to be disciplined and highly selective in our approach towards bidding for future growth, and we look to secure projects with a lower risk and higher return profile.
We reiterate our FY '25 guidance, as well as our longer-term outlook. We have already commissioned almost 500 megawatts of capacity this financial year and are well advanced on many other construction projects. Finally, safety is of utmost priority to us, and it has been deeply embedded in our culture since day one. As a testament to that commitment and focus, we were recently awarded a 5-star safety rating by the British Safety Council for one of our projects. Turning to Page 7, we have come a long way in 12 years by constructing 10 gigawatts. What took us 12 years for the first 10 gigawatts, we intend to repeat in less than five years for the next 10 gigawatts. There have been some learnings that we intend to implement in our future portfolio. Firstly, our thesis of having an in-house team for EPC, O&M, and digital platforms has provided us with significant differentiation from others, where we not only save on costs, but the turnaround time for our projects is lower than most peers.
Please keep in mind that wind, which is much harder to execute, constitutes approximately 50% of our delivered megawatts, which means that we have done so with a higher degree of difficulty than others who have been largely focused on solar. Also note that wind CapEx is almost double that of solar CapEx. Therefore, every megawatt of wind represents a more significant capital investment than one megawatt of solar. Secondly, when we decided to get into manufacturing, we received some strong feedback about it. However, today it has become a significant competitive advantage for us. As the government of India has implemented ALMM, we have a secure source of modules, and the availability of modules at the right cost is becoming a key differentiator in the Indian renewables landscape. Finally, our capital discipline, along with our ability to access the cheapest and most diverse sources of capital, both for equity and debt, differentiates us from others.
Turning to Page 8, execution is a top priority and a key differentiator for us. We have executed 2 gigawatts of capacity over the last 12 months and reiterate our execution guidance of 1.9 gigawatts to 2.4 gigawatts for fiscal FY '25. Year-to-date, we have executed approximately 500 megawatts, including 400 megawatts of a solar SECI project, and have received COD approvals for all of the projects that were pre-COD at the time of fiscal 2024 earnings. Additionally, we have over 600 megawatts of capacity that is in the advanced stages of completion and will enable us to hit our construction targets. We signed 2.2 gigawatts of PPA during quarter one FY '25 and continue to be optimistic about signing the majority of the PPAs from our current pipeline in the current fiscal year. Our module manufacturing continues to scale up, and our module supply is now fully met from our own manufacturing facilities.
The Jaipur facility will produce more than two gigawatts of modules this year, while the Gujarat facility is already operational and should be ramped up fully by the end of the year. We have also started to secure external sales contracts for module supply, and we currently have contracted to sell around 600 megawatts this financial year. These contracts will ensure that our surplus capacity is put to good use and will enable a faster return on capital deployed. Now, let me hand it over to Kailash to talk more about the finance strategy. Thank you.
Thank you, Sumant. As can be seen on Slide 10, we continue to deliver consistent growth. Since the same time last year, we have constructed over two gigawatts of projects, a near 24% increase in operating capacity after adjusting for 400 megawatts sold during the year. While there has been a 24% increase in operating megawatts, I would like to remind you that our adjusted EBITDA last year benefited from late payments surcharges, which were absent this quarter, and we continue to fade away as we have largely received most of our late payment surcharges that were due to us, and our customers are currently paying the bills on time. In addition, we sold 400 megawatts during the year which contributed to last year's EBITDA. Lastly, this quarter, we saw a slightly lower PLF, and that impacted our revenues by about INR 1.3 billion. We have seen a recovery in the weather in July, which was about 10% to 15% better than last year.
To conclude, while there was almost INR 3.9 billion increase in revenue due to higher megawatts, our adjusted EBITDA increased by only about INR 400 million due to all these factors. Moving on to Slide 11, the leverage at the operating asset level continues to be well below the 6x threshold that we have set. On a trailing 12-month basis, the leverage was around 5.7x, excluding our under construction portfolio, contribution from JV partners in the form of CCDs, and our manufacturing and transmission businesses. The 5.7x leverage is after taking into account the fact that we commissioned a large capacity of 650 megawatts in the last month of the previous year, for which the EBITDA contribution has been only for a single quarter. The debt related to our manufacturing and transmission business does not contribute to our adjusted EBITDA, but it does provide us a competitive edge for our business.
As we continue to grow our portfolio, the proportion of under construction projects as a percentage of the overall portfolio should come down and will improve the ratios in addition to our efforts to be disciplined in our approach towards capital deployment. Let me hand it over to Vaishali for comments on ESG.
Thank you, Kailash. We are delighted to present ReNew's inaugural annual integrated report for fiscal year 2023-24. This serves as a testament to our commitment to exceeding geographical reporting standards and advancing global transparency. With the release of our integrated report, ReNew has achieved several firsts, setting new benchmarks in our ESG vision, performance, and transparency, which I will elaborate on in the coming slides. The annual integrated report has been crafted in alignment with IIRC, GRI, SASB, UNGC, among others. The financial and non-financial parameters for fiscal year '23-'24 have been externally assured by S. R. Batliboi & Co. and Ernst & Young, LLP respectively. Turning to Page 13, showcasing the key performance highlights for fiscal year '23-'24. In fiscal year '23-'24, ReNew has made significant strides in its ESG efforts showcasing a strong commitment to safety, sustainability, and social responsibility.
We successfully avoided 16 million tons of GHG emissions reflecting a 15% year-on-year increase and saved 358,000 cubic meters of water marking a 13% improvement. Our operations sourced 41% of electricity from clean sources, and we achieved carbon neutrality for Scope 1 and Scope 2 emissions for the fourth consecutive year. Through our socio-economic programs, we positively impacted over 475,000 lives with a CSR spending of INR 240 million. Our workforce reflects a 14% gender diversity rate with women representing 10% of STEM roles. We maintained a lost time injury frequency rate of 0.22, and all our suppliers were assessed against ESG criteria. Turning to Page 14, highlighting the key features of ReNew's inaugural integrated report. With the release of ReNew's annual integrated report, we incorporated key value additions to mention the value creation framework, impactfully showcasing the inputs, business model, outputs, and outcomes.
We also laid special emphasis on the robust corporate governance and risk management framework at ReNew by listing the risks identified and mitigation strategies adopted. Moving to Page 15, the preparation of the integrated report led to many firsts at ReNew, namely the very important double materiality, a two-pillar system with a core set of shared disclosures that place each pillar on an equal footing and includes both financial and impact materiality under one roof for economic and sustainability reporting and our effort to identify environmentally sustainable economic activities and to support sustainable investment. We voluntarily aligned ourselves with the EU taxonomy, making us one of the first few Indian companies in the sector to do so. Turning to Slide 16, we would now like to highlight our special initiatives for fiscal year '23-'24. Our flagship program, Lighting Lives, an initiative focused on the last mile electrification of schools with less than three hours of electricity through solar energy, electrified 183 schools and established 119 digital learning centers.
Women for Climate, which is an important part of our programs and our socio-economic empowerment initiative, focused on building climate resilience, has trained 350 women saltpan farmers. Additionally, some of the specific initiatives we have undertaken are programs led by our employees, known as ReNew'ers, ensuring sustainable, equitable, and responsible growth. We have an annual volunteering campaign that covers most of our sites and ReNew'ers. We provide safe drinking water by building 223 water tanks and desilting 22 lakes. Our Gift Warmth program, recognized by our honorable President of India, involved distributing 836,000 blankets across the regions in India where it gets quite cold, donating rice to the needy, and contributing towards a hunger-free India where we distributed about 143 kilos of rice across our sites in the country. Let me now hand it over to Kailash to discuss our guidance.
Thank you, Vaishali. I just wanted to end by reemphasizing that there has never been a better time to be in the Indian renewable sector from a market opportunity, returns, and capital deployment perspective. Regarding our guidance, while we had around INR 1.3 billion impact from weather this quarter, we saw the trend reverse in July, making us confident that we will deliver on our annual EBITDA guidance. Hence, we are reaffirming our megawatts and lockdown guidance as well. Do note that historically our Q2 numbers have been about 10% to 15% higher than Q1, and we should see a similar trend in Q2 subject to weather conditions and adjustments related to late payment surcharges and projects sold. With that, we will be happy to take questions.
分析師問答
Your first question comes from Justin Clare with ROTH Capital Partners.
Hi, thanks for taking the questions. So I wanted to start off here. You had indicated that you've contracted, I think, 600 megawatts of external module sales. So I was wondering if you could talk about the potential revenue and margin profile for those sales, the anticipated timing of recognition. And then, if you could share, is that with a customer within India, or have you looked to the market outside of India for selling those modules?
Kailash, do you want to take that?
Yes, sure. So, Justin, thanks for your question. These are customers within India to secure some of these module supplies. And again, we are not disclosing the details of that in terms of pricing and all, but these are agreed in terms of overall margins and would add to the EBITDA of the company as we go forward.
Okay. Got it. And then, so you have commissioned portions of the RTC and peak power projects here. Was wondering if you could just update us on the performance that you're seeing for the commissioned portions of those projects. How does it compare to your expectations? And then how do you feel about meeting the requirements under those PPAs?
At this point in time, we have commissioned parts of it and we are not selling it under the PPA because the full system isn't ready. So right now all the sales are happening through the merchant market. But we are seeing attractive realizations on whatever we are selling in the merchant market, better than our base case.
Okay. Got it. And then maybe just one more, just how are you thinking about asset recycling this year? Are there particular projects that you're in the market with looking to monetize, and just what's the potential to see an asset sale in fiscal '25 year?
So again, it's going to be very opportunistic, Justin. Right now, we have a few discussions going on, and when there was a requirement of capital, currently asset recycling is offering us the lowest cost capital. So, we've been disciplined about it, and to meet our requirements, we may monetize some assets.
Okay. I appreciate it. Thank you.
Thank you, Justin.
Your next question comes from Maheep Mandloi with Mizuho.
Hi, hello, thanks for taking the questions here. But maybe just following up on Justin's question on the module sales. Could you just talk about the timing of that 600 megawatts of something you, kind of like plan to do this fiscal year or next? And could we kind of think of that as programmatic to look at the production and your needs and everything else, kind of assuming that it's sold in the Indian market?
Yes, so in terms of timing, it's going to be a function of the production cycle that we are following. Most of it is going to be back-ended towards the end of this financial year, and some part of it will slip into the next financial year also. So that's where it is. And again, we have set up this entire capacity for our captive requirements. So largely we would prioritize that to meet our IPT solar business requirements. And if there's an opportunistic play there in terms of better margins, then we may look to sell some of these modules to third-party customers. Again, it's early days, so we are not really giving any guidance on that till we stabilize in terms of what our requirements are likely to be and how much surplus we will have, as well as what opportunities are available to monetize that.
Kailash, if I may just add to that, sorry if I may just add to that by Kailash. If you look at how much we are going to be producing this year in terms of setting up project capacity of solar, and how much we have in terms of production capacity on the manufacturing side, I think it's fairly clear that we will be selling some amount into the market on a regular basis going forward. The only thing is it depends obviously on when our requirements are versus when the production will be happening. But we should assume that there will be a chunk of sale that will happen from a manufacturing business into the market. And this for you to know there are two kinds of sales. Obviously, there are pure module sales only, and then there are module sales along with cells. And those have different realizations given the supply and demand for modules and supply and demand for cells. And so that's really how you should think about it.
Got it. And just on that, are you seeing any interest from other markets outside of India?
Yes, we are seeing interest. At this point, we are waiting for our cell plant to get commissioned, which will happen later this financial year. And then of course, there will be a period of stabilizing. I think once all of that is done, then we will be in a position to start supplying cells into the markets, any markets, either the domestic content requirement market in India or the export market. So, I would imagine that will probably start happening from next financial year onward sometime.
Got it. And just maybe one small modeling question or housekeeping. DSO increased a little bit this quarter. I think last quarter, we were expecting it to be flatter or short down. Is this Telangana, or anything else kind of impacting that?
It's mostly just a quarterly distribution because the quarter one revenues were a little lesser compared to what the receivables were. So that's why the ratios are a little bit higher. But it's nothing significant.
So I would say, Maheep, also there is typically a seasonality in our receivables because billing starts to go up quite substantially in the high wind months. And the receivables tend to come in on a more even basis.
Got it. So it seems more seasonality, not any changes…?
No, not really. Not really.
Got you. I'll jump back in the queue here. Thanks.
Your next question comes from Angie Storozynski with Seaport.
Thank you. So my first question is about the wind PLFs coming weeks. I understand that there are some weather variations. But I'm wondering, in the U.S., we're having more and more examples of issues with wind turbines, onshore wind turbines. And I'm just wondering if the underperformance of your wind assets has anything to do with any equipment issues, or is it just the weather?
It's just the weather, Angie. There is no wind turbine performance issue. In fact, our performance of wind turbines has been as per our expectation, across all the regions, across all the turbine models that we have. We have turbines from various different suppliers, both Indian and international. So we haven't seen any systemic issue there. It's just really been the wind.
And if you think about your assumptions, like the longer-term assumptions for the wind PLFs, have you sort of tweaked them, i.e., lowered them, just to account for those relatively disappointing PLFs that we have seen over the last couple of years?
We have done that, Angie. For all the future forecasts and the bids that we are doing, we have significantly changed the methodology. The point is the following: if you take a longer history, then the forecast for the future ends up being higher. If you take more recent years and base your forecast off of that, then the projection ends up being a little bit lower. So if you follow the traditional methodologies of using 25 years of data, you'll end up typically with a higher PLF. We are beginning now to give a little bit more weightage to the recent years so that our future forecasts are more conservative than they would have been. I should also add that none of the third-party wind forecasting agencies have made that shift. So, we are being more conservative than where the market is right now. For budgeting purposes, therefore, we've reduced our year-on-year forecast as well.
Okay. And then secondly, again, just a comparison to what's happening here in the U.S. on the renewable side, there's also discussion about data centers and co-locations and renewable power feeding into those high-power tech users. Is that a phenomenon that you actually see in India? I mean, maybe not now, but going forward? And is that the type of business that could give you premium margins for renewable power in your build?
Yes, for sure, Angie. All of that is contributing to overall aggregate power demand, which is growing at 7% to 8% a year in India right now. And just a word about the overall demand-supply situation in the country: at this point, we are not able to meet the power demand growth. Previously, we had some excess capacities on the coal side, but a lot of those capacities now have been exhausted due to the demand growth we've witnessed. Coal capacity additions are quite limited in India, as we just don't have an EPC/equipment market that can add coal capacities beyond a certain speed. Therefore, renewables are really the only other alternative, which is growing at a certain pace. Until that pace steps up, you will see deficits in the market, and thus higher merchant prices. That is really what we are seeing in the market.
Okay. Thanks.
Your next question comes from Puneet Gulati with HSBC.
Yes, thank you so much. My first question is on the solar cell capacity. Can you talk about where you are in that journey? When should we expect commissioning for the solar cell?
Yes, so we're very close to getting it to a point of getting the first cells out. I would say in the next few months, we should be able to start seeing the initial trial production run start. Then there will be a period of stabilization as you know, Puneet, because obviously, cells are a little bit more complex than modules. Our expectation is that by the end of this financial year, the cell plant will be in reasonably good shape in terms of its output.
And so by next financial year, it should be totally clear.
Yes, by the end of this financial year. So let's say in the next, as I said, next two to three months, we should start seeing the production start to happen. After that, there will be a ramp-up period, which I presume will last a few months. But certainly, the production will start this year itself, this calendar year itself. After that, there'll be a period of stabilization and ramp-up. From next financial year, we should be able to deliver most of the capacity.
And how's the transmission tie-up for the 1.5 to 2 gigawatts that you are looking to commission this year? Is that all tied up now?
Yes, all of our transmission — and when you say transmission, I presume you mean the interconnection to the grid?
The connectivity, yes.
Yes, so all of that is fully tied up, Puneet, not just for this capacity to be commissioned this year but for our entire capacity going out for the 22 gigawatts that we have won altogether. For almost our entire capacity, our transmission and connectivity is tied up. An important thing to note is that over and above that, we have some excess capacities that we have blocked via the mechanism allowed in India. We have a few gigawatts excess beyond the 20-odd gigawatts that we have won right now. On the connectivity front, we have been very proactive about getting connectivity in the best substations. A little bit underappreciated is that those connectivity applications in the better substations will enable us to generate and drive higher profitability in future projects.
Which we have done, I think, more proactively than other operators.
Yes.
Okay. Sorry, in terms of those transmission connectivity, are these also coming in schedule or in line with your commissioned capacity, or could there be a risk of delay, something that we experienced in the last fiscal year?
The thing is that every substation, there's pretty good visibility on when the transmission contractor is likely to commission the substation. Obviously, the nearer the commissioning date is, the more the certainty of that date being met. The further it is, the less the certainty. But by and large, within a three to maximum six-month timeline for projects that are coming up for three to four years later, connectivity does tend to get done. We are not seeing delays beyond that. Of course, we manage our own construction timelines to align with what we see happening on the transmission construction timelines.
Understood. That's helpful. Thank you so much and all the best.
Yes. For this year, we are not seeing any delays, by the way, just in case you were looking at that.
Your next question comes from Uma Menon with Bernstein.
Hi, thank you for taking my question. My question was regarding the short-term power sale that you had mentioned that happened in Q1, '25. Can you let us know what part of it made up the revenue or the EBITDA? Like, how much of that was a part of the revenue or the EBITDA in the quarter?
What sale were you referring to?
The interim power sale?
Yes, yes, I got that. Yes, yes, sure. So, we have in the RTC project, around 400 megawatts. And in the peak power project, we have around 300 megawatts, which is currently based on merchant sales. I mean, the 400 megawatts of solar, 300 in RTC, 274 in RTC, peak power is wind, and another 300 in RTC is wind. So, all of this is currently based on merchant sales. I can circle back with the exact breakup.
Sure, thank you.
Your next question comes from Amit Bhinde with Morgan Stanley.
Hello, yes. Sir, my question again was on the solar module manufacturing front. So, as of now, you have sold 1 gigawatt in FY '24 for internal consumption. With that, what is the kind of cost and realization that you are approximately seeing and the kind of margin that you can make on it, EBITDA margin and the PAT margin - of ballpark figures?
Yes, so these sales are internal. Again, we are not reporting any numbers on them right now. But obviously, we target a certain margin on a transfer pricing basis that we charge to these businesses. But then eventually, everything gets capitalized. So we get a little bit basically capitalize a lower cost because in consolidation everything gets knocked off.
Right, right.
But I think your question…
Higher, like high-teen EBITDA margin or mid-teen or say low-teen EBITDA margin kind of. Any idea on that that you can give us?
See, we are targeting around a certain margin which is less than 10% because it's all internally captive.
But I'll tell you what, the margin on the transfer pricing doesn't really matter. As Kailash said, it gets consolidated, right? What we are doing is we will be starting at some point in the near future to report the P&L of the solar manufacturing business separately, assuming arm's length transfer pricing between the two businesses. Okay? So that's something that we're going to start doing at some point in the future.
Right. And sorry, one more point on this one. The EBITDA margin, as you said, you would like to keep it below 10%. So would it be somewhat equivalent in the external sales as well? Or would it differ materially?
No, it's not the same. It would be very opportunistic in those cases.
No, it does differ materially. It does differ materially, yes.
Right, right. Got that. And just another question is, I mean, any visibility on the capacity that you have to put out for IOCL, JV on green hydrogen?
No, not yet. Simply because, that bid has to happen. I mean, we will have to win first. Then we'll have to see, basis that, how much capacity we need to allocate for that JV.
Right, right. Got that, yes. Those were my questions. Thank you.
Your next question comes from Puneet Gulati with HSBC. Puneet Gulati, your line is open.
Yes, thank you for the follow-up. My question is if you can talk a bit about your experience with respect to the recently commissioned solar and wind plant in terms of what kind of SNIR you're experiencing there, both for wind and the solar?
So on the solar, Puneet, there's been no issue in that the PLSR, even for the older projects and obviously the new projects as well, are pretty much in line with what we had assumed. As far as PLFs for newer projects are concerned, the projects that we have commissioned now, these forecasts were made four to five years ago when we were following a little bit more the older methodology, which we have subsequently changed. What's happened is the machine types have changed a lot because these machines that we are now commissioning are three plus megawatt machines with much higher hub heights and so on. The PLFs of these new machines are therefore higher, but we don't have enough of a.
PLFs, what are these PLFs?
We'll have to wait for a whole year to finish before we can assess, but in general the PLFs of these new machines would have been at least 10% to 15% higher than the older machines just given the nature and sophistication of these machines and their higher megawatt and structural configuration. We should be expecting a higher PLF, but we'll have to wait for an entire year to finish before we can conclude anything about whether that Delta was finally delivered or not delivered. The reality is that these machines are definitely performing at a higher PLF than the older machines.
Okay. And does that apply for solar modules as well?
To be honest, I haven't again tracked that particular data, whether in fact the new modules are giving higher PLFs or not, so let me get back to you on that.
Great.
I mean the fact is that all the new projects are now bifacial, so they will definitely give a higher PLF.
Correct. So that could be the delta in time, how big that delta is?
Yes, we'll have to, we can't just give you an obstacle feedback. We'll have to look at the performance over at least a year. Then we'll have to also look at the difference in location. Then we can do some analysis and conclude what exactly the difference is.
That's it. Thank you, Sumant.
Your next question comes from Macaulay Smith.
Hi thanks for taking my question. I know you answered earlier on briefly about receivables, but could you just add a bit more color? During the quarter it seems like there was an increase in both receivables and payables, particularly on the receivables, as we were assuming improved collections, and looking at the same period last year we don't necessarily see the same seasonality?
Yes, as far as the payables are concerned, it's a function of the CapEx program and some payments that have become due on account of the investments that we are making. Those keep getting cleared off. Sometimes the customer may give us a credit period. They'll take an LCA and may discount it. Because of that, there will be payables, which may show up. As far as the receivables are concerned, yes, there has been an increase this quarter, but again year-on-year there's been improvement. Last year it was 114 days, this year it is below or around 80 days. As I said earlier, it's mostly an account of the first quarter revenue. You calculate DSO on the basis of trailing 12-month revenue. First quarter being lesser revenue, there will be some impact on account of that because receivables are largely constant. There is no significant impact we are seeing or any delays from any of the off-takers; all of them have been fairly prompt in making their payments that are due to us.
Okay. Thank you. And then my second question was just on the recent tap for the 2026 bonds if you could just add any color on the purpose of those proceeds?
So it is again for repaying some other debt within the system, so it is largely being done for that purpose.
Thank you. That will be all my questions.
Thank you.
There are no further questions at this time. That does conclude our conference for today. Thank you for participating, you may now disconnect.