IRM Energy Limited (IRMENERGY) Q1 2027 Earnings Call Transcript

Good afternoon, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to IRM Energy Limited Q1-FI27 earnings conference call. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone telephone. Please note, this conference is being recorded. I would now like to hand over the floor to Ms. Krishna Patel from EY. Thank you, and over to you, ma'am.

Thank you, Akash, and good evening, everyone. A warm welcome to all participants joining the C1H 2017 earnings consensus call of IRM Energy Limited. Joining us today from the management team are Mr. N.K. Sharma, the CEO, Mr. Amitabh Banerjee, the Executive Director, Mr. Brajesh Singh, COO, Mr. Ashish Manishwari, Director of Finance, Mr. Arun Kumar Saluru, Chief Financial Officer, and Mr. Abhiran Pandya, Chief Corporate Strategy and IR Head, who will discuss the company's operational financial performance for the quarter. Address your questions, Zahra. Before we begin, I would like to remind you that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to risk and acceptance of specific practical results to differ materially from those expressed or implied. Please note the audio recording transcript of this call are the property of IRM Energy Limited, may not be copied, reproduced, reprodcasted, redistributed in any form without the prior consent of the company. With this, I would like to now have a hand over the call to Mr. N.K. Sharma, the CEO, for his opening remarks. Thank you, and over to you, sir.

Thank you very much, Krishna, for the introduction, Akash, and the entire EY team. Good evening, everyone. On behalf of the entire IRM Energy team, I would like to thank you for joining us today as we discuss the complete performance of Q1 FY27, Our operating progress across the geographical areas and their strategic priorities that will guide us through the remaining part of the year and onwards. You are aware that amidst geopolitical developments in the West Asia, which has resulted into elevated energy prices and volatility across the global gas market, print market, and everywhere, We have been also impacted quite a bit, but despite all the challenges, IRM Energy Limited has successfully ensured uninterrupted supplies across its operating geographical areas through prudent gas sourcing and operational agilities. As supply conditions gradually normalize, as we are very hopeful of soon, we remain confident in our ability to sustain the growth, supported by the strong balance sheet, expanding infrastructure network, and diversified customer base. Despite the challenges during the quarter, I am happy to share that IRM Energy has developed Highest-ever quarterly revenue, EBITDA, and the profitability. During the quarter, our revenue from operation stood at Rs. 326 crore, registering a growth of 24% year-on-year and 17% quarter-on-quarter. However, EBITDA, excluding other income, increased sharply to 62 crore rupees, reflecting a growth of 139% year-on-year, with EBITDA margin extending to 19% of profit after tax, which stood at 34 crore rupees, which is up 140% year-on-year, with that margin improving to 10.5%. This is a double-digit test time we have given. This performance was driven by a favorable pricing environment, sustained volume growth, and the continued expansion of our infrastructure network across all the 4GAs. Our confidence is in the underlying growth opportunity remaining strong, and we continue to target a 20-25% revenue growth CAGR over the next five years. An encouraging trend across the four GAs is growing. Adoption of CNG is growing on adoption of CNG recul. CNG accounts for about 51% of our recul sales in the Banas Kata and 60% in the UNG in Sobnaath GAs. Demonstrating, this all has demonstrated strong market acceptance of our fuel.

While penetration is

lower at 15% in Amakkal and Trichipri Palli and 6% in Fatahigat Saeb, this is the first substantial headroom for future growth as our network continues to get expanded in those two years. From an operational perspective, Q1 FY27 was another quarter of CD progress. Our volumes reached an all-time high of 58.9 mm SCM, growing 8% year-on-year. This was primarily driven by C&G volume that grew around 22% year-on-year and 75%, 22% or year-on-year and a strong momentum on P&G commercial volume which grew 75% year-on-year. This all has contributed 67% of the total volume during the quarter. While PNG contributed 33%, PNG industrial volume were impacted during the quarter following the government notification dated 9th March 26th, which resulted in an around 80% reduction in the gas allocation amidst the supply disruption arising out of the West Asia conflict. This notification was specifically only for industrial supplies, not impacting CNG and PSG domestic areas, or even commercial areas. Our network remains on track across all the licensed geographical areas, and on 30th June, 2026,

we operated 153 CNG stations, And this 153

station is a 47% year-on-year growth in our station, supported by 554 dispensing points on those locations across all the four GAs. Our changing station network has grown consistently over the years, supported by our franchise, Todo, OMC, and company-operated models. We continue to deepen our P&G customer base during this quarter. Like, domestic P&G customers increased to 86,590, to be precise. Commercial customers increased to 589, and industrial customers is 228 numbers. Thank you. Thank you very much. We will continue to scale up meaningfully as a newer geographical area as the infrastructure rollout is at a very advanced stage. During the quarter, we also made encouraging progress on institutional and commercial partnership. In Namakkal, we commissioned CNG sales to GNSTC, Tamil Nadu State Transport Corporation buses, with more than 80 buses currently operational. That way, we have got more orders, and shortly, we will be connecting more buses of Namakkal and 3T. They are going to assure us more than 200 buses in near future. Similarly, for TU, we have successfully converted the entire commercial segment of PNG. Now that we can call TU as a central territory, totally LPG-free. And there we have got all the commercial connections connected to PNG now. This has further strengthened our network utilization in that region. We also have signed a book-up arrangement with Indian Alps GGA and also with Pudrat, GSTC, GTPL, we can call it, in the DO and G-Somnar giving us, currently we were drawing liquid from Jhara terminal from HPLNG. Now, once this tap-off is connected, we will be integrated with the national network, and we can have the swapping and other arrangements conveniently done. So, we would also like to convey that we have executed MOU with the Somnath Government, Sanskrit University, and Grati Ministries for PNG supply en masse, and also to their commercial kitchen. Our infrastructure development continues with discipline during the quarter. We have incurred capex of approximately 67 crore rupees in one three-month quarter in FI 27 this year, Q and FI 27 this year, taking our cumulative capex to around 1090 crore rupees in that time. With our total internal milestone and planned rollout strategy, we remain committed to investing into the infrastructure going forward also that enhances our network reach. It improves the customer accessibility and support and sustainable volume growth. On IPO front, let me convey that IPO proceeds are being utilized. We have utilized almost 337 crore out of the total net proceeds of 496 crore as on 30th June 2026. This nearly represents 68% utilization. The balance amount is primarily remarked for the development of City Gas Distribution Network at Ramakkal and Trichy GA. I am also pleased to share that IRM Energy continues to strengthen its professional management team. During this quarter, we have reinforced our team and have appointed a seasoned industry leader to the key positions, including Director of Finance and Chief Operating Officer, both of whom bring extensive experience from leading Indian conglomerates. Each strategic addition in the top management further enhances our leadership capabilities, strengthen our governance, and position of the company well to execute in the next phase of our growth, continuously with a greater scale, efficiency, and operational excellence. We like to continue our expanding the CNG network in the calibrated manner, aligned with the demand potential and station economics. We also place to drive deeper PNG penetration across domestic, commercial, and industrial segment. As you know that PNG domestic is the buzzword in recent time. So, our focus is that all the possible areas in our line and infrastructure is available, they must be connected with the help of OMTs getting the LPG connection surrendered so that our PNG drive takes it forward meaningfully and effectively, profitably. We also maintain financial discipline, student capital allocation, and operational excellence across all OGA's, and all the infrastructure are meaningfully decided with the expected returns on IRR. The long-term fundamentals of the CGD sector remain effective. Natural gas continues to be the most important transition fuel of India, supported by the policy focus, rising urbanization, and increasing preference for a cleaner energy solution. Thank you.

Thank you, sir.

Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. The first question comes from the line of Mr. Kiran Garge from Nightstone Capital Management LLP. Please go to.

Hello. Hello. Hi. Good evening. So, the EBITDA for SCM improved significantly. So, wanted to know if there were any one-time items?

There were no one-time items. Request. Yeah, this is Arun. Request Arun to please address it. It was not very audible to me.

Yeah.

So, this is Arun. There were no one-time items.

Okay, because the contribution for SCM

improves significantly, I was wondering if it is sustainable.

So, this quarter the revenue has increased because of our optimization in the pricing as well as we have actively optimized our gas sourcing and OPEX. So, and there were variable factors in this quarter, so all this has led to a higher contribution.

And so for the outlook of FY27, can we model this?

Yeah, in the FY27, in the next three quarters, we expect EBITDA to be in the line of 7 to 8 rupees for SCM, operating EBITDA. And our revenue growth will be around 25%. That's what we expect.

Okay.

Thank you.

Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and 1 on your telephone keypad. The next question comes from the line of Mr. Nevesh Gugay from HDFC Securities. Please go ahead, sir.

Yeah. Thanks. Thanks for giving me opportunity. A couple of questions from my side. Sir, can you tell us the sourcing mix for priority and non-priority sectors?

So, this quarter, if you see the APM and WG together were about 32%, HPST was around 35%, and the balance was the long-term.

Long-term include the reliance, gain, and others? Sir, can you share the same number for the last quarter? Is it possible for you to share now?

So, the last year the APM was quarter 4, so corresponding quarter 1 FI 26, the number of APM was 27%, long-term sourcing was 27%, and X2HC gas was 38%, so correspondingly the long-term, the RLNG and the IT, right now 32%, which has been increased, because of this budget sourcing with this long-term partner, and the APM will remain within the range of 21 to 22%.

Okay, and this is you are talking about the Q1 FY22, right?

Yeah, compared to Q1 FY22, cash funding quarter.

Okay, and what are the same number for the Q4 FY26?

So, yeah, it was, so it was APM was around 15 percent, sorry, 26 percent, whereas as of in quarter 1 is around 21 percent and then down-term sourcing was 40 percent to 32 percent for this quarter.

As you said that Arun mentioned that for next three quarters, the EBITDA per SCM is guiding about 7 to 8 rupees per SCM, and this quarter we will talk at about 10. So, average in earlier communication, you mentioned that your average EBITDA per SCM will be in the range of 5.5 to 6 rupees per SCM. So, indirectly, you are raising that number to, let's say, in the range of 6 to 7 rupees per LCM. Is my understanding correct for FY27?

It will be because of some obvious expenditure which we are also doing some optimization. So, like, if you can see the switch expenditure where we have this 7.15 in cash funding quarter per LCM, the switch expenditure, whereas it is only 7.22. So, they are one of the big contributors for us for this quarter as well, and that will even continue in this future as well. So, that is also one of the things which can increase this EBIT up per LCM. Apart from that, there are some gains in terms of the pricing as well. So, where we get benefit, even everyone will get benefited for this pricing. So, because of that, so our, because of our gas strategy, we could not have too much increase in this gas, but then the price still, I think it increased. If it remains continue, then our EBITDA SCM would be around 6 to 7, very minimum.

But, sir, if I look at this quarter's number, it seems that your P&G contribution has gone up significantly high if I compare last year, this quarter, or maybe Q4 also, because of the drop in the P&G industrial customers. The volume there has gone down because of the non-availability, various reasons, and which we believe that PNG is the high, you can say, EBITDA contributor in terms of a per unit volume, whereas the industrial commercial, the margins are very narrow. So, in next quarter, in the subsequent quarter, then your industrial commercial volumes will be back on track. So, still you will be confident that you will maintain that 7 to 8 rupees per SPM kind of EBITDA per SPM margin?

You can keep around 7 for the full year ended for this 27.

Ashish, let me step in. Let me step in. Stephen, I'm Anki Sharma CEO. We would be very candid with you. In fact, the sourcing is the key for our this good achievement. We can say that for industrial, we had had two long-term contracts. One is GSPC, the other is with the Shell. So, with these two sourcing, the pricing formula we had with the HPST gases. So, as you can understand that the spot prices were escalating somewhere hovering between $16 to $20, or minimum it was $14. So, in this full quarter, we could enjoy the HPST rate, and that was around $9. So, you can understand the margin had to be put. And going forward, going forward also, price we are maintaining for the sake of industry survival also. And our gross margin also had been higher for that reason. And that is one of the sourcing, one of the, I mean, credit was the thing which has given us a better margin in FPM-wise. And going forward also, this HPSC sourcing will continue up to March also, and one of the supply will continue up to 28 January also. So, that way, we are confident that our sourcing team will contribute to our margin, and till such time, our competitors have not reduced the prices. We will keep the prices at that level only, because not only competitors, but the alternate fuel prices are also at high level. So, these are the prime reasons that we are enjoying a better STM market. I hope that clarifies you, your queries in totality.

Yeah, thanks, sir. Thanks, Sarmajee. And, you know, as far as the, yeah, sorry, go ahead, sir. Yeah, so, Nilesh, adding to what Sarma, sir, has told, you know, if you look at it, we are in that industry where we are not the pricemaker, we are the price taker. And based on our portfolio, which is here, the price taker industry is able to match up with the price and make margins. And that's what has happened.

Thank you.

Okay. Yeah, thanks. And sir, just one question. While answering the question, Arun sir mentioned that top line growth of 25%. Is it true? For FF27?

Yes. So, YOY it is 24%. It is...

Okay, you are expecting 25% top-line growth in FY27. Is that correct?

Yes, yes. So, this is how it pans out. This guidance I am telling from Q1. But, this is this thing, you can take a range of around 20% onwards. 20% safely as well.

And in that, can you split between volume and value? Is it possible?

Volume and value is not possible, but volume-wise, we expect around 10% to 12% kind of growth in volume.

Okay. Okay. Okay. Thanks. Thanks. Thank you. That's all from my side.

Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. The next question is from the line of Mr. Pavan from Aarti Capital. Please go ahead.

Sir, can you just outline what were the volumes at Namakal and what is the volume growth that we are expecting this particular year? I am asking for Q1 and what are we targeting for FF27 as a whole?

So Namakal, in Namakal, in Q1, we did 6 mm SCM in Q1. So, year on year, year back, it was 2.84 mm SCM quarter-wise.

Year on year, quarter-wise approach?

Year on year, it is a hundred and two percent.

Okay, and for FI 27, what are we expecting at Namakan?

So, it will be in the range of 25 to 30 MMSEM. For the full year?

Yes.

And what was this number for the full year FI 26?

For the full year FI 26, I will get back with that number.

And also, I just wanted to check if the volumes are going significantly scale up in Namakal, wouldn't that impact our EBITDA per STM margins slightly negatively, or am I overriding it?

No, EBITDA guidance we have given, so it will be around 7 rupees per STM, that you can take, overall EBITDA guidance.

Okay.

Okay. Got it.

Got it.

Thank you.

And you were asking for FY26 number 3C volume, so it is 15.2 MNSCM. 14.2, is it? 14.2, right? Yes, yes. 14.2 MNSCM.

Okay. And we are saying this year we might end up somewhere between 25 and 30.

Yes, 25 and 30, that's the same. It will be towards the 30 range only.

Okay, and on Banskanta, which is our main geography, are we still looking at a double-digit growth in terms of volumes? Yes, yes. Okay. Okay, and thank you.

Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and 1 on your telephone keypad. The next question comes from the line of Mr. Abir Pandit from Old Bridge Mutual Fund. Please go ahead, sir.

Hi, sir. Thanks for the call. Sir, just had two questions. Primarily, sir, can you just give a bifurcation of the source sequence? If you have given it earlier, I apologize, but could you just help me on that? Yes, yes. I will give you the bifurcation.

Yes, I am giving the bifurcation. So, basically, APM and WG, it will be around 32% this quarter. HPST was around 35%, and the balance was RLNG and LNG.

Sir, so, if I see your realizations, right, your realizations quarter-on-quarter basis, as well as year-on-year basis, you have taken a 15% hike on an entire company level, right? So, is it, how is it different across GAs and across the P&G aspect? Could you just help on that? And even on the industrial aspect?

So, I can make you understand by that the contribution to the profitability, if I say, Banas Kantham will be 46% has contributed to the profitability.

Okay.

So, are you saying basically that you have taken the entire price hike or you want to take another price hike going ahead in view of the fact that this gas aspect remains an undecided issue? So, how are you planning on this?

In fact, the price hikes are always linked to the sourcing, and as of now, since the brand has also started cooling down, we will not need to pass on and spoil our upcoming market by making the price hike. But at the same time, whatever we have been able to take from market, particularly industrial volumes and all that, that we will continue for some time because, you see, the pricing formula of sourcing is so that it doesn't get reflected in the same very month. It is three-month average or one-month average or something of that sort, or average of the dollar-rupee conversion also. So that way, it is still for some time. So price hike, you can make it immediate, effectively immediate, but the sourcing, the thing is still for two months, three months or something like that. So price reduction, at least we are not at all in a position or in a mood to do. Till such time, we are great.

Okay, perfect. So, my next question is related to what is the amount of CAPEX that you are looking at in FY27?

FY27, we have plan of 150 crore rupees, and we have current target more than that. And then 50 crore rupees, we will be investing in NT alone, out of the IPO proceed which we And for the remaining two, we have got a tap off from GSTL. So that tap off will also be one. And in BK, we are further reinforcing, making our stations online from the daughter booster station. And domestic fronts are opening up also. So another 50-50 crore rupees we have planned. In BK, 50 crore rupees. So, 250 crore rupees capex we have allocated to be spent in the remaining three or more.

Okay, perfect. Okay, fine. Sir, just on the FI27 plan, so you currently have increased by almost, I mean, you have 150 CNG stations. So, what would be the plan for FI27 and how much would be in Namakal and Trichy and how much will be in Banaskanta?

Banas Katha actually is almost like saturating. So, what we have strategized that around 10 to 15 stations only, last year we had had a good number there, and this time we would like to let our dealers stabilize and capitalize on their volumes. So, we are not adding much. We will be in the range of 10 to 15 only in Banaskartha, although that is a CNG hub for us, and profit builder also is Banaskartha, but let the dealer also, I mean, seek the taste of higher volume. And in remaining two, Namakkal and Pritchi, we are scouting more for cocoa locations, but unfortunately, land prices and other things are discouraging. So, mostly co-located with OMC, we are going. So, we will be doing around 15 to 17 stations this year in Namakkal and Pritchi, five around in Divya Somnath and only two in Fatehgadu.

Okay. Sir, just one more question. Related to the NGT aspect in Fatehghar Sahib, is it being resolved and have volume started kicking in? Or how are you looking at the process there as to when the volume shall ramp up again in Fatehghar Sahib?

Very, very, very, I mean, sensible question you have asked, actually. This is something which is bothering everybody. What has happened? NGT has given a favorable order in the month of late February. But at the same time, I mean, the war also broke out. So, 9th of March following month only, before things could have taken cognizance of, immediately the supply cut started happening. So, actually, we could not take much advantage of the NGT order by enforcing the Punjab government or the PPCB, Punjab Pollution Control Board, because we were already starved of the sufficient supply. Only 80% we were having. But at the same time, the current government is undergoing election. So I have hopes that they will not be very, very, what you call, aggressive in implementing the NGT order. But even if they don't do, there is a natural growth already happening that side. And we are in the position to add more industries. More industries are coming, which are currently at least the impact of HGT order is so that CTE and CTO, the consent to operate and consent to establish is not being granted to any newer industries, which are not on natural gas. So, that is an up-tradic volume. Once the NGT is fully implemented, we are sure that volume will ramp up, I mean, nightly.

Okay, perfect, perfect. Okay, thank you, sir. This one's from my side. Thank you.

Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad.

The next question comes from the line of Mr. Saket Kapoor from Kapoor and Coop. Please go ahead, sir. Mr. Saket Kapoor, please go ahead with a question, sir. Hello. Yeah.

Hello.

Yeah, yeah, yeah, please. Yeah, Namaskar, Sarmaji, Namaskar, CFO Saab and Company Secretary and other dignities present. Sir, I joined very late in the call, sorry for any questions that have been answered. Sir, but the sustainable, these EBITDA margins, if you could just explain to us what are the key factors that have actually contributed to these enhanced margins And whether those factors are in continuity, or there was something one-off that has, therein we have expanded, because جو ہماری ریبنیو بڑھی ہے, اس سے کئی گنا ہمارے ایبیٹا کی گروہت آئی ہے. تو یہ ایکنومی آف سکیل کے کارن ہے, اگر آپ سے اس کے سبب اس کے جان کاری دیتے ہیں.

No, no, بالکل, بالکل ساکیت, you are never late, you are always in time, and your questions are very nicely drafted. I can only say you, although you may have missed our clarifications in past questions, But we would like to say that, as we said, our sourcing has been responsible for giving us a better gross margin, and, of course, our tight operating cost management has yielded into this kind of path currently, higher SCM per, EBITDA per SCM. We were just mentioning the cost of reputation, I would like to say that our sourcing is on HPST basis even for industrial volumes. That is tied up long-term contract for five years up to 2030. We have got this volume done in April 25 with GSPC and Shell. So, with that contractual obligation, we enjoy a restricted price of $9, and of course, as per market dynamics and the competitors' pricing, we stand in an advantageous position, not only in quarter 1, quarter 2, quarter 3 also, till such time the prices stabilize and we are not forced to reduce the prices, and industry volume doesn't decline because of the higher price consumption. Because of the alternate fuel and all such things. Our EBITDA per SCM will continue for at least one or two more quarters. And in the meanwhile, the NGT orders have come that will help us to maintain a higher volume growth in the industrial sector. So we assume that this year onwards, I mean, this quarter onwards, we should be in a position to, I mean, give better results, Q&Q and Y&Y.

Okay, so to conclude this EBITDA margin closer to 19% is a good sustainable number for the ensuing quarters also. This much understanding we can take home. We hope and pray, but we can't guarantee 19% always. Not always, but it is in the bank, sir. From 10 to 19 is a big number, but to maintain it to 19 or 17, 16 is also a big number. So, only one should invest a model.

I mean, we rest assured that our efforts are on, but 19 may not be a fact going forward, but it will be better than 10. Somewhere we will land in between. Figures are very difficult to say at this moment. Okay.

And so then pertaining to the opportunity at Namakkal and the efforts done, I think, so the tie-up with the Tamil Nadu Bus Authority also, what exactly are we eyeing as a contribution from the GA going forward, and what kind of further CAPEX are anticipated? It will be done for this year.

We have mentioned here just now that capex of 150 crore rupees plus will be allocated only for Namakkal and Trichy because infra is at the rollout stage and we will be meeting that target actually in Namakkal and Trichy that way. Okay. So, with regard to volumes, as you had mentioned, that Tamil Nadu State Transport Corporation tie-up has happened. So, furthermore, another 50 to 100 buses they are going to convert into CNG, but they are buying also. I mean, 80% buses are new buses, 20-30% are retrofitted buses. So, we have opened our dispensing facility in their depot itself, so that they don't go here and there. We have fast fueling dispensers we have installed, and this volume will go on increasing. And you understand that CNG is a profit builder for any of the CGD company, volume builder also. So, that will continue. Number two, as regards to CAPEX is concerned, CAPEX will be pre-requisite for any future growth. So we are trying to aggressively invest the IPO money as well as our plot back profit money also in rollout of higher infrastructure so that more and more domestic and industrial customers are also attracted towards us. Besides the CNG sector. So that will also help us making many of our CNG stations online in place of currently we are operating through two models. One is Dr. Booster model. The second is LCNG model. Both the models are less profitable than the online station model. So, our CAPEX are having multiple aims. One is that our operational cost of supplying feeding gas to all the ROs should be lower. Secondly, Infra will help us in expanding the government's push also for more and more domestic connections and commercial because of LPG's crisis. The commercials are also beelining us for connections. That is another attractive market which will help us. And of course, industrial, we have yet to catch many potential industries there. That side, Sipcote is one area where the industrial city is there, industrial town is there. We are trying to reach that side so that many more customers are feeded through our natural gas. So, Namakkal and Trichy is our aspirational GA, wherein through CAPEX and our meticulous rollout of the roots, we are trying to build the volume. It may take one or two year time, but that should be one of the pride GA for us. That is what we can conclude for you.

Right. Two small points. And firstly, on the volume growth, so taking into account how we have performed on the volume front and the factors that have led to it, where do we see our volume growing in the ensuing part of the financial year? And, sir, then in your IRM business and financial update, you mentioned about this successfully completed full conversion of commercial customer base in view to PNG, advancing clean energy penetration across the license area. So, the benefit of this and how will this be a margin-accretive step or if you could explain these two points.

I will tell you, in view, you know, a small Nagua beach is there. That beach is having more than around 250 commercial installations, hotels, small huts, and the picnic hubs and all that. So, now that Nagawa Beach is completely fed by our natural gas because of the compulsion, you can say, that LPG was in scarce supply, and we had already through Vaya Creek, we had already reached to that island, and now everyone is now connected. By the end of July, not a single one will be left, I believe, and they are connected, and volume is going to grow, replacing entire LPG. This is what is the dual story. Okay, and what is the monthly revenue rent rate? Average revenue? Overall due? Overall due?

My finance team will precisely tell you, sir. And sir, the volume growth, please tell us what you are anticipating going ahead. Volume growth, please tell us

about 9-10% compared to the previous year, and we are expecting around 2 big growth, around 250 mmHCM by the end of this year, on the entire portfolio level.

Sir, can you come again, sir, Avaish Safa Nini? I am not able to hear you.

So, volume growth, we expect minimum around 10%. So, last year, we clocked 224 MMSTM. So, we expect that it will be in the range of 250 MMSTM by the year-end, for the full year. Thank you.

In one bottleneck, the other route, which was happening from Saudi Arabia side, that is also because of war has expanded to that region. So it remains in limitation. So because of, I mean, this supply constraint, volume growth is, I mean, not predictable, to be precise. This 224, which we are telling, would have been more than 270, 260 around. But because of the constraints, uncertainty exists. So we precisely only constrained our growth at 10% level currently.

Correct, correct, sir.

On the volume.

On the volume. And sir, on the sourcing part, we have increased the number of sources and the dependent part So, that we have mapped out our sourcing for the remaining part of the year in a meaningful manner.

Yeah, yeah. Saket, again, I am repeating, since you were not there in earlier communication. EPM is 21%, as you understand. The balance is persecuted through NWG, new well gas, 11%. So, this all makes 33%. HPST volume which we have tied up now, that is 35% of our total volume. So, CBG blending also happens 1%, and long term is 32%. So, you can appreciate that on a spot, we are hardly forced to arrange our supplies to the extent of only 1%. So, almost all is either through IGX or through preferential allocation of, I mean, APM, HPST, our portfolio remains very much sound enough, and for only, I mean, Namakkal and Krichi, which is not linked to the national grid, we need to depend heavily upon Indian oil corporations and no terminal, And slightly to some extent, Kerala's Kochi terminal. So these two terminals are helping us out for feeding our namakal energy growth through liquid. Because gas tap-off is still not in a high potential. Gale line is coming. In IOC, one more line is hot tapping. I mean, SVA station we have arranged. But all that will take at least one and a half year, one year, nine months. That sort of vision is there. Till such time, some spot volume we would arrange from Indian Oil or from BPCL or the PLL, these kind of sources from Cochi. So that only will go for spot sort of arrangement or short terms, you can call it better. Otherwise, our sourcing portfolio is robust enough to take care of my ongoing demand. Even the long terms are ramped up in such a manner that after six months, we have a higher volume tied up, and another after six months, higher volume tied up, which is matching to the growth which we had anticipated in 2024-25. So, things are not out of hand, and the spot reliability is least.

Okay, sir.

Thank you for all the elaborate answer. Only to the point of our payment of commission to the promoter, there were also some discussion by the minority shareholder and the shareholder community of whether we are putting any ceiling or whether the promoters are considering the request from shifting from a percentage to an absolute number. So, please do abreast us on how that point is shaping up and what are the thought processes on the same going on.

I know every time you have this question with us, and we have also clarified the same answer we would like to give. This is exactly, first of all, no commission. This is a license fee which has been arranged, well declared in IPO document also, that 2% goes to them. And that is what is, for charity purpose and all that, the, I mean, CSR purpose, it goes, and it is not sort of profiting to any of the promoters, well declared in IPO documents, and that is consistently going. And as of now, I can't promise you whether this will continue at a reduced rate or same rate or maybe abolished altogether. But in spite, with or without this kind of license fee, we are growing that much as a management, we can assure you a lot. And we can only say that we are committed to all investors, stakeholders, shareholders for giving better and better performance. This whole year is around 20-25 crore rupees, which goes to them. So, you can discount that, which is already accounted for in my PAT this quarter, and going forward also. This is already accounted for and discounted for.

Right.

I should be happy with the PAT at least here. At least comment us, Saket.

Yes, sir. I am very, very positively surprised by our numbers. That is what the reason I am asking, I was trying to incline to get a sense whether on a higher base, are we in a position to even match this performance for the ensuing part of the year? Because that would be a commendable job to contain these numbers going ahead. So, and the team has done a remarkable job.

Takit, it will be highly, I mean, optimistic to say that same performance as stellar performance as Q1 will be repeated every quarter. But it will be definitely subdued going forward, not up to this extent. But my request is that at least enhance your stakeholding, right? We find that this is important. It's a large point I missed. This was on a lighter side. Anyway, please go ahead.

No, sir. Thank you for all your comments, and best of luck to the team. Thank you, the Sharmaji, Arunji, Ashit Bhai, and other members of the team. My best wishes to everybody. Thank you. Thank you, sir.

Thank you so much, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. I repeat, if you have any questions, please press star and one on a telephone keypad. The next question is from the line of Mr. Mahesh Tulsani from Guquata.

Please go ahead, sir. Mr. Mahesh Tulsani, please go ahead with the next question, sir. There is no response from Mr. Mahesh.

Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. There are no further questions, sir. Now I hand over the floor to the management for closing comments.

Sir, thank you very much, Akash. Thank you very much. I hope that we have been able to answer more clearly, lucidly, frankly, and with full transparency all the questions of the investors. I would like to formally now, based on record, thank you all for joining us today and for the active participation in our Q1 FI27 earning the conference call. On behalf of the entire IRM management team, I would like to express my sincere thanks and gratitude to all our shareholders, investors, analysts, business partners for their continued trust and support. They have reposed on us time and again, and we hope that we have been able to address your key questions and provide cleaner perspective on the IRM's performance. Should you have any other further questions, please feel free to contact us on our Investor Relations Advisor through our Investor Relations Advisor, E&Y, and who will be happy to assist you. Rather, we are also quite often trying to interact, all of you, and in person also you would be, I mean, more than happy to give any sort of clarification. Thank you all. Thanks to Krishna, Akash, EY team for the successful conduct of this meeting. Thanks to my team also who has been shoulder to shoulder working very hard for giving better and better results going forward. Thanks a lot to everybody.

Thank you so much, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of EY, we thank you for your participation. You may disconnect your lines now. Thank you and have a pleasant day.