Gujarat Industries Power Company Limited

K K Bhatt

GENERAL MANAGER (FINANCE) & CH IEF FINANCIAL OFFICER

Shalin Patel

COM PANY SECRETARY & COMPLIANCE OFFICER

Anshuman Ash It

ICICI SECURIT IES GUJARAT INDUSTRIES POWER COMPANY LTD

rs,

ishna Kumar: My next question is regarding the dividend. Dividend has been constant for many years, even actually going down. At some point of time, we got Rs . 2.9 per share. Now we are getting onl

Rs. 2.7

en actually going down. At some point of time, we got Rs . 2.9 per share. Now we are getting only Rs. 2.7. Despite a ll these additions of capacity, still the dividend is go ing down. Even the public s

30%

still the dividend is go ing down. Even the public sector units, they follow the DIP AM policy - 30% of the profit or 5% of net worth - even that is not being followed. Any chance for revision in

5%

go ing down. Even the public sector units, they follow the DIP AM policy - 30% of the profit or 5% of net worth - even that is not being followed. Any chance for revision in the dividend policy?

75 megawatt

d that you would be awarding. Could you please tell us the status of the same? K K Bhatt: The 75 megawatt we are thinking to have the solar station at our mining reclaimed land to cater the requirement o

50%

once it is finali zed. But anyhow, we are very confident to put up capacity in our park more than 50% on our own. NiJ'aj Vijay Kamteimr: Sir, out of the 2,375 megawatt that is either allotted or awar

2,375 megawatt

to put up capacity in our park more than 50% on our own. NiJ'aj Vijay Kamteimr: Sir, out of the 2,375 megawatt that is either allotted or awarded to you , if we are going to develop 50% of it and another 50%

1100 megawatt

for the park will be spent by aIPCL and we will get fixed return and after we will get altogether 1100 megawatt or 200-200-200 will happen in 5 yea rs? KK Bhatt: The park has to be developed also in a phas

250 megawatt

idled during this qUaIier, sir? KK Bhatt: 125 plus 125, 50% capacity of SLPP. Out of the 500, 250 megawatt was out of generation because of the shutdown. But the shutdown was not for the entire quarter,

75%

re for full last year? K K Bhatt: We are taI'geting to achieve the commercial availability of 75% and 80% which is as per PPA for getting the full fixed cost. Our target is to reach to that lev

80%

ull last year? K K Bhatt: We are taI'geting to achieve the commercial availability of 75% and 80% which is as per PPA for getting the full fixed cost. Our target is to reach to that level. Most p

Rs. 1,100 crore

n we wi ll be getting on those investments? K K Bhatt: Total per se CAPEX is somewhere around Rs. 1,100 crores wherein we are going to get 30% subsidy from MNRE and the rest in that we are putting debt and

“We will be able to recover whatever is under recovery of fixed costs for the yem·.”

“Last year, the new project - Khavda project - was at the initial stage.”

“Secondly, on our renewable projects, there was one 75 -megawatt project that in the last call you had mentioned that you would be awarding.”

“it is most likely to be in place within a short period and we will be coming out with the tendering process and everything to put up this station.”

“We will be able to generate for the next 6 months at full load.”

“We will reach the profitability at the end of the year at a very reasonable and good level.”

“NiI'aj Vijay Kamtekar: Can you please update us regarding the Khavda project?”

“Our role in the KJ1avda project is that of a park developer.”

“They all will be in place by December end mostly.”

“And the activity related to the plant, once the park reaches a specific level of development, then we will go with the project wherein how much capacity we will be adding at our park, any other location, that is still under discussion with the authority.”

KKBhatt

38

K K Bhatt

31

Vipul Shah

18

Anshuman Ashit

9

K KBhatt

7

Manoj Shah

7

Kushal Jain

7

KK Bhatt

6

Renjith Sivaram

5

Vipul Shah

4

Krishna Kumar

I have two questions. One is that yom PMS has been coming down over the years for both the Smat li gnite plants and this qum1er also pretty low. Is there any specific reason why it is consistently going down? Especially this year, most of the other thermal companies are doing better. And is there any stoppage of buyi ng power ii'om your customers?

KKBhatt

Basicall y, power sector qu arter 2, we have taken thi s time 2 shutdowns - SLPP unit I for economizer beam replacement because it was sagging and the unit was not going to full load. That was the reason that we had to take like last year we did it for unit 2. Now, SLPP-2 unit 4 capital overhauling has been calTied out for a period of 45 days because since the inception, capita l overhauling was pending. These two reasons we are slightly having a lower commercial avai labi lity than what you are thinking of, but as per the PPA, commercial avail ability has to be counted and taken into account for the purpose of fi xed cost recovery on a yearl y basis. So, if the plants are funning very well. We will be able to recover whatever is under recovery of fixed costs for the yem·. That's not an issue.

Kt'ishna Kumar

And hopefully, your profitability will come back to the pre-Covid GUJARAT INDUSTRIES POWER COMPANY LTD

K KBhatt

Yes, definitely. This time what happened is 2 shutdowns have been taken into the same quarter which was not the general practice year-on year basis. Generally, 1 shutdown may be there in 1 qualier. This time, both the units - unit 4 and unit 2 - are in the quarter 2 only Beam Replacement exercise and capital over hauling carried out in the Q2. That was the reason for low profit. But hopefully we will recover.

Krishna Kumar

My next question is regarding the dividend. Dividend has been constant for many years, even actually going down. At some point of time, we got Rs . 2.9 per share. Now we are getting only Rs. 2.7. Despite a ll these additions of capacity, still the dividend is go ing down. Even the public sector units, they follow the DIP AM policy - 30% of the profit or 5% of net worth - even that is not being followed. Any chance for revision in the dividend policy?

K K Bhatt

Dividend is being declared by the Board of Directors looking at the future expansions and projects which al'e coming, lined up, and how the cash flow is moving - all these things are taken into consideration. Last year, the new project - Khavda project - was at the initial stage. That was the reason sli ghtly dividend was pushed back, but there is nothing like that it can't be increased. We will look into it how the profitability and we may go back to the same level also, not an issue.