K.P. Energy Limited (KPEL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the KP Energy Ltd. Q2 FY27 Earnings Conference Call hosted by Share India Securities. Before we begin, I would like to mention that this call may contain forward-looking statements based on the company's current expectations and assumptions. These statements are subject to various risks and uncertainties and actual results may differ from those anticipated. Such statements should be read in conjunction with the company's disclosures in its regulatory filings. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harish Patel from Share India Securities. Thank you, and over to you, sir.

Thank you, and good afternoon, everyone. On behalf of Share India Securities, I welcome you all for Q2 FY27 earnings conference call of KP Energy. We are pleased to have with us the management team represented by Mr. Afan Faruk Patel, the whole-time director, Mr. Rajesh Trivastav, Executive Director, Projects, Mr. Kapil Kriplani, Group CFO, Ms. Sabana Belim, Chief Financial Officer. We will have the opening remarks from the management followed by Q&A. Thank you and over to you, Sabana, ma'am.

Thank you, Harsh. At the outset, I would like to express that Mr. Afan Paruk Satel could not join us due to certain emergency requirements, and I share this forum with our group CFO, Mr. Kapil Kriplani, our vice chairman, Mr. Sunil Maeshwali, and our executive director, Mr. Rajesh Rivasar. So, good afternoon, ladies and gentlemen. On behalf of the Board of Directors and the entire KP family, I extend a very warm welcome to our Q2 and H1 FY2627 earnings conference call. I, Shabana Belim, Chief Financial Officer of KP Energy, thank you for joining us today and for your continued confidence and support. I now take you through our Q2 FY27 financial performance. The progress we have made over the first half of the year, and the numbers thereof. Let me begin by saying that the second quarter was a quarter of steady and sequential progress. While we spoke about a change in the scale of our business in the last quarter, this quarter we have built on that scale and grown further. In a quarter that coincides with monsoon when the site activity is traditionally slower, we have reported an amazing performance. I'm pleased to share that our consolidated total income for quarter 2 FY27 stood at Rs. 540 crores compared to Rs. 303 crores in Q2 of FY26, representing a growth of approximately 78% year-on-year. Revenue from operations stood at Rs. 539 crores compared to Rs. 301 crores in the corresponding quarter of the last year. Infrastructure development continued to be a growth engine, with revenue of Rs. 527 crores compared to Rs. 289 crores in Q2 of FY26. This is an approximate increase of 82%. Our Ointen business continued its steady growth with revenue of approximately 3.2 crore compared to 1.72 crore last year, while the sale of power stood at approximately 8.41 crore compared to 10.01 crore in Q2 of FY26. Our gross margins for the quarter approximately stood at 19%, broadly in line with the Q1 and FY27. Thank you very much. The operating environment as prevalent in the Q1 FY27 has continued through the quarter, and our margins have remained consistent with that frame. The profit before tax for the quarter stood at Rs. 38.86 crore, compared with Rs. 37.44 crore in Q1 FY27. The profit after stand tax stood at Rs. 26.92 crore, compared with Rs. 26.08 crore in Q1 FY27. The depreciation in finance costs stood at approximately 9.27 crores and 17.11 crores, respectively, in line with the expanded scale of our operations. Looking at the first half as a whole, our consolidated total income for H1 FY27 stood at 1,062 crores compared with Rs. 524 crore in H1 FY26. A growth of approximately 103%. The profit before tax per year stood at Rs. 76.3 crores compared with 88.72 crores last year, and that after tax stood at 53.22 crores compared to 61.37 crores in H1 F586. In simple terms, in the first six months of the year, we have already delivered approximately 71% of the total income we reported for the whole of S526. That is the clearest measure of how the business has changed. Our order book as on 30th September 26th stands at approximately 1.64 gigawatts and with an estimated value of around 1940 crores. Giving us a strong revenue visibility for the coming quarters. Let me now spend a few minutes on the industry because it explains why KT Energy's evolution into a full-wind EPC clear is not just an ambition, but a natural response to where the sector is selling. F-26 was a landmark year for the Indian wind. The country added a record of 6.05 gigawatt of wind capacity, an increase of about 46% over the previous year, and well above the earlier peak of 5.5 gigawatt, such as back in F517. That momentum has carried into this year. India added 3 gigawatt of wind capacity in the first half of the F527, with July to September quarter recording the strongest quarterly edition of the calendar year. Cumulative install capacity of wind has now crossed 59 gigawatt, making India the fourth-largest wind market in the world. MNRE has indicated that the country is on track to add around 7.5 to 8 gigawatt in F527. The road ahead is even larger. The government's target is 100 gigawatt of wind capacity by 2030 and 156 gigawatt by 2036. To reach 100 gigawatts, the country has to add around 40 gigawatts in the next four years, roughly 10 gigawatts for every single year, compared with 6 gigawatts in our best year so far. The industry body and the project annual installations rising to about 13 gigawatts by 531. The pipeline to support this is already in place. Around 40 GW of wind projects are currently under construction and implementation across the country, and the resource itself is vast. India's wind potential at 150 m hub height is estimated at about 1,164 GW, of which we have capped only 5% so far. The nature of demand is also changing in wind's favour. Further to add this, India's wind turbine manufacturing capacity has doubled from about 12 gigawatt in FY23 to 24 gigawatt today, with 70 to 80 percent localization. In other words, the country can already manufacture roughly three times the turbines it will install this year. Hence, Indian wind is no longer a constraint. The land, right-of-way, civil and electrical work, evacuation infrastructure, and the ability to deliver multiple large projects on time is what KT is master at. Gujarat, our home state, continues to lead the country with over 17 gigawatt of installed wind capacity, and this is where our execution depth, land bank, and evacuation experience gives us a natural advantage as we step up from A BOP contractor who works for EPC FAC. I would now like to speak about the future. The KP Group is moving into its next phase of evolution, which we call it KP 3.0. Over the years, KP Energy has built capabilities that very few players in the industry have under one roof. Some identification, development, land, right-of-way, electrical work, evacuation, transmission infrastructure. This all into one offering. The transition of KP Energy as an EPC constructor is saved and deliberate. It will expand the scope and value of every makeover we execute and deepen our relationship with the customers. This clarity of the role also places KP Group in a well-defined format. Our growth, therefore, will not come from chasing the margins. It will come from scale. A larger order work, a wider EPC scope on every megawatt we execute, and a consistent delivery across many more projects. Stable margins on a much larger base translate into steady growth and absolute profits. And that is the predictability we want our investors to be able to count on. As a part of this integrated platform, KP Energy will continue to receive BIM-BOP contracts from related entities within the KP group. Such related parties transactions will be continued to be undertaken at arm's length and in ordinary course of business. I would also like to inform you about the change in our statutory auditors. Ms. Casey and Associates LLP, a member of the firm of the BDO Network, one of the six largest audit and accounting networks in this world, has been appointed as statutory hostess of the company, succeeding Mark and Associates, which exists from Q2F527. As Topey Energy grows in scale and moves towards becoming a complete wind EPC player, the oversight of an auditor with an international global network, deep sector experience, and robust audit methodology strengthens the quality of our financial reporting and the confidence of our investors. On behalf of the board and the management, I thank Mark and Associates for their association and valuable contribution over the years, and we look forward to working with MSKC and Associates, LLP. Our IPT portfolio stood at 48.5 megawatt operational, with an additional 202 megawatt under development. As this capacity comes online, it will add recurring revenues alongside our core EPC business, and the associated depreciation benefit will continue to support our cash profits. To summarize, Q2 FY27 has built on the scale we established in Q1. We have grown sequentially and held our margins steady. Our focus remains very clear to convert scale into quality growth, to protect project-level profitability, to grow our recurring revenue, and to emerge as the leading India's wind sector EPC player. We remain extremely confident about the road ahead and about our ability to create sustainable and long-term value for our shareholders. On behalf of the entire leadership team, I thank our investors, customers, lenders, vendors, employees, and all our stakeholders for their continued trust and support. Thank you. With this, I now leave the floor open for questions.

Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone 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, we will wait for a moment while the question queue assembles. The first question comes from the line of Nishant, an individual investor. Please go ahead.

Yes, am I audible?

Yes, Nishant.

Yeah, I have a remark and a couple of questions. So the remark is, I mean, you can do better in declaring the results just a bit before than five minutes of the call on the last day of the declaring window, right? I mean, that would be really helpful. And the question that I have is in terms of profit, right? I mean, this is the first time in last three or four years, the profit has decreased year on year, which is like 25% since last September quarter. So what is the outlook here? Do we expect same profit levels or will there be an increase to previous levels? And this is like a one-off or two-off quarters.

Okay. So, Nishan, first of all, thank you for your question. So far as your observation and comment on the duration, the gap between the upload of the results and the call is concerned, let me assure you it is very well noted. Well, this was not deliberate. You know that this particular quarter was the first quarter of our auditor, and the new auditor, and that is why the meetings, the board meetings, and the audit committee meetings took a little longer. However, going forward, we will ensure there is a sufficient gap. Coming to your next question with reference to the profitability, we would like to clarify that we are emerging and continuing as an EPC player. And going forward, as I had already indicated in my last quarter transcript in the presentation that we had done, this margin is currently the margin that we have, and we look forward to the same going forward. So, yes, the scenario was different. We all know the geopolitical conditions that have prevailed, and going forward, the market has really not responded to those platforms the way it was expected to.

Okay, so then where does the future prospect of the company hold, right? I mean, almost all are in company orders 50-60%. The promoter royalty is now based on revenue and not on profit, right? So 2% of 500 crores compared to 2% of 300 crores last year, but the profit have decreased 25%. No real technology moat anymore. Does it also make sense to be a listed player anymore or is it better to become a subsidiary of the group and then the royalty and stuff can also be taken care of better by the promoter? Where does the future hold?

Okay, so coming to your query about the future, I have already given an insight about the industry per se, where the growth is tremendous. And I've also given an insight about the strategy of the company where we look forward in delivering larger volumes and generating value in terms of a higher value in terms of profitability. Let me assure you that there are not many competitors in the wind segment in India itself leave Gujarat alone. And in such a situation, being the leader in the wind ETC segment, I do not see any kind of a limitation for the business to pour in. We have already got our hands full with the current execution cycle, and we are already bidding for almost 1 gigawatt of senders which are available, which may materialize. Even if I consider 70% of a strike rate, 700 megawatts is not gone anywhere, which will materialize soon enough.

Okay, thank you for the opportunity.

Thank you, Nishan.

The next question comes from the line of Nitin Sethi, an individual investor. Please go ahead.

Good afternoon, everybody. My question is, previously, in one of the interviews, the CMDs have said that KPI Energy one day will become a subsidiary of KPI Green. Is there any on the plans? Because the growth in this sector is now plateaued, actually. So, any comments on that?

Nitin, Kapil here. See, we don't have any concept of group company in KP Group. All companies are associate of each other. So, there is no question of KP Energy becoming subsidiary of KPI Green. And as far as growth is concerned, we are very positive on the growth outlook. I think we can safely say that we are the best EPC player for wind in India, and looking at the aspirations of the group in wind as well as solar and renewable at large, we don't see any issues in looking at a high-growth future.

Kapil, sir, but my question is that the margins will continue over 12% or will it increase over a period of fit time? I mean, the 0% margin is going to be a new normal, or we can expect some improvement from there on.

For now, safely, it can be assumed that these margins will stay at this level for KPNRG. And they are not bad. Once the scale is there and the environment has changed for EPC, And we have to always be looking at the reality. We don't want to guide you wrong. And even if you assume about 25% growth, we are looking at the profits and margins at a very healthy ratio and numbers as the revenue grows. And obviously, the market is where it is. So, we still see ourselves at a very healthy and good position.

Okay, sir. Thank you.

The next question comes from the line of Parth Kotak with Plus91 Asset Management. Please go ahead.

Hi, Kabbal sir. Hi, Shabana. Thanks for taking my question. One bookkeeping question, if you can provide with the units generated in IPP during the quarter, that would be helpful.

Yeah. One sec, just give me a moment. Dave, I think we already uploaded it on the portal. I don't have the number handy. Give me a moment.

Okay, I think it's not there in the presentation.

You can ask another question. Yeah, I look for it when you can ask another question.

Yeah, I think there is a strategy segue per se from an entity perspective where we've clarified that KPEL will only do EPC projects from now on, and keeping that in mind, I'm I'm hoping that CAPEX requirements will probably go down going forward, and hence probably the leverage ratio should also moderate going ahead. So if you could provide with some guidance on what kind of CAPEX we are looking to do for FI 27-28, that would be helpful.

So, before that, I even got the numbers ready. In Q2, we had about 2.75 crores of units generated, and in H1, we had 5.92 crores of units generated. So, these are the number of units that have been generated over these two quarters. Coming on the question, I'll ask Kapil sir to address that.

So, Parth, just to answer on the debt and the EPC portion, so you are right, there is no large IPP plans for KP Energy, other than what we already have, about 250 megatrides.

202.

Yeah, 202, and then we will not have much of further capex. So we have guided in KP 3.0 that we will not exceed debt to equity of 2 in future, even after this.

Okay, sir. Noted. And lastly, if I may squeeze in one more question on the working capital front. Again, at the end of the last year, I think our inventory had ballooned. Thankfully, inventory has not increased further from the Q4 levels. If you can give some sort of guidance on how we are looking at inventory to probably normalize going ahead in the year.

Okay. So, you rightly mentioned the inventory levels are at 1,067 now, and which were earlier at 1330. We also spoke about the geopolitical conditions and the purpose for which the inventory was higher in our last call. And if you remember, this has really helped us in safeguarding ourselves in meeting the delivery timelines of the customers. And, well, inventory for a wind segment, especially where the transmission lines and the PSAs and the infrastructure, power infrastructure is covered, and then where we are still in a volatile situation where we... Pricing is really volatile in terms of speed. I think to a certain extent, as long as we have our EPC project lined up, this will remain for a certain period. Although I do not see any massive growth in terms of the inventory, as you can see, we have already come down, and going forward also, this will be the trend.

All right, ma'am. That's all from my side. I'll join back in a little. Thank you.

Thank you, Aparth.

The next question comes from the line of Ritesh Bhagwati with Alpha Plus Capital. Please go ahead.

Thank you for the opportunity. So my question again revolves around the margins again. So like are we buying turbines or heavy equipments on behalf of the client and passing them through a little bit of markup or how much of that is like, you know, through passing off equipment costs? Basically, is it because of that or is it also because of, you know, the lower priced work that we are doing for the KP group companies and how much of it pertains to the cost over and Like I'm sensing multiple scenarios like these. So I just want to understand exactly what is, you know, eating the margins. And as you mentioned, it will sustain like this over a period of time. So just want to understand this more in detail.

Okay. So, Ritesh, first of all, there are no lower margins on the group-related contracts. All the contracts with the group entities are at arm's length basis, and they are as far as the current prevalence types, number one. Number two, the mix of the kind of EPC contracts we have. So every contract is more or less, I can say, unique in terms of what is the scope. Some do have turbine included into their supplies. Some would prefer to get only the BOP done. Some would prefer to get only the infrastructure done. So each contract that we get from the client is a specific tailor-made project, And we have different scope of work with reference to each of them. So, wine, yes, we do supply wines to customers. And we have a small markup on the same as well. But then, as I said, the margin is a mix of the combination of the deliveries that we have made throughout the period. I hope I have answered your question.

Okay. And what share of our revenue comes from the group companies at this point in time?

So, quarter two, this is 50-50, you can say so, this quarter. We have improved from the last quarter where it was almost 80-85.

So, going ahead, is the trajectory of 50-50 or it getting lesser?

So, it depends upon a lot of factors, Ritesh. I wouldn't want to comment on it because, as I said, if I'm the only wind operator in this industry, I mean, I'm only the wind ETC contractor, and if my group entity wants to deliver the project, I mean, wants to get its IPV done, and if I get it at arm's length, I don't see any challenge why the transaction is done after obtaining due approval from the stakeholders and the other requisites. Thank you very much.

Awesome. Just one last thing, like, so are these margins that we are reporting are supposed to be considered as the lowest margin, or how do we see?

Hold this as the benchmark, either in terms of a low or a high. As I said before that, going on a larger scale, while we were delivering a double-digit number in terms of the net margin, net profit earlier, I would also appreciate if you can look at the size of the turnover that we were delivering. We were delivering about 200 to 300 crores. We are now going ahead with, in two quarters, we have delivered 1,000 plus crore of turnover. So, obviously, large scale scenario would be a different margin. It would shrink to a certain extent.

See, Ritesh, you will have to factor in the reality of any industry when it saturates. And then, obviously, the competition and the kind of margins always taper down. So, we'll have to live with this.

Okay, fair enough. Thanks a lot. That's it from Michael.

The next question comes from the line of Darshan Chandra, an individual investor. Please go ahead.

No, very, very low. Now it's audible? No, no, no, no. It's very, like, it looks like you were talking from far. I will be queuing again.

The next question comes from the line of Darshal Pandya with Fintris Capital. Please go ahead.

Hello, am I audible? Yes, sir. Yes, sir. Sir, thank you for taking up my question. And I just wanted to understand one thing in this tough times that we are talking since last two quarters. Sir, we have scale right now that we are seeing in the number terms. Last quarter, what we heard was there were environmental, you know, the environment was challenging with geopolitical instability. Just want to understand from the total expenses side, what is something that is heating up the margins and why do we feel so that the current EBITDA margins will sustain at this level?

Okay, so from the component perspective, as I said, there are the raw materials and the labor component which take a hit, you know, which take a, I mean, which cause us to take a hit. So while labor is something which is very volatile, and this is not what we're talking about, any skilled labor or a super skilled labor, we're talking about something which is At times, available in plenty, but when our dependencies are extremely on it, it becomes very difficult to manage and take into the cost considerations. Going further, it is human-driven. It is not a machine that in case if one doesn't work, we need to install two or three or four multiples of each machine. This is human-driven, and that is the reason why the cost implications are completely different than a factory or a mechanized project where it happens on its own. So, there are other – ROW is also one of the factors which we spoke about in our last call. And the right-of-way is changing the scenario now that the government wants to promote more and more of renewable segments. They are giving more and more benefits extended to the farmers and the landowners, creating a little more cost in terms of the same. So, these are the major factors which contribute to the cost escalation. Going forward, market takes its own call, and eventually it will balance out in terms of the economic factors as well.

That is understood. But what is the, if we are talking about the labors and, you know, other things, what is the cost of labors to our total revenue? I'm sure it must not be that volatile, which we are discussing right now. And if the component prices have increased over the time, I am sure in the last fall also we mentioned that we did do have some price escalation as well. Because if we are facing some issues, it passes on to the customer. So, really not able to understand, madam, because it's been two quarters, we have done 21-22% margins, and a sudden drop in the margins, but I'm not able to understand still after your submission. Okay.

So, Darshal, before getting into what numbers and how much are we talking about, let me first explain you a scenario where a particular location is being accessed. Now, wind is a separate game altogether. There are multiple locations when we talk about one project, unlike solar, where the location is within one vicinity. And in such a situation, each location has its own, I would say, pros and cons of ROW placements, of labor-related placements, and we have to have approach roads to each and every location. Now, it can become into a vicious circle where one fine day the ROW is hampering the activity, and we need to resolve that considering the current scenario. And by the time the ROW is resolved, we will have the labor who is sitting idle there because we really do not, we are not in a position to fathom when this thing will start working again. Sometimes it is also the dependency on the larger equipment like cranes and their availability. So this is also what causes us to... Have a certain idling implication and overall cost implication. So I wouldn't, while these are the components, I wouldn't put it on one component alone. It's a mixture of lots of events happening together while the execution on ground is already happening.

I think, madam, I'll also get in touch with the team again and take it offline. Thank you so much. Sure.

The next question comes from the line of Ruchi with Vora Family Office. Please go ahead.

So, considering you gave an explanation that currently we are facing labor issues and also with the raw material costs. My question is around what are we doing to become better at it? Because the margins, of course, following the same question that the previous participant also asked, the margins have substantially come down. What is our outlook going forward? How are we becoming better at it?

Yes, Rishi. I would also like to draw the attention to the fact that when we were discussing the numbers in Q1 of FY26, the total income was approximately about 221 crores. And if you compare it with Q1 FY27, this number has come to 521 crores. Now, imagine a 300 crore of jump in terms of the revenue that we have delivered and the work that we have executed. This shows what we are actually doing in order to recover in terms of volume, while this quarter numbers also are 540 plus. So, if you see put together about 1,060 plus of turnover, which is almost 70% of what we delivered last year annually. Now, this is where we are trying to reach out and, you know, create a space in terms of delivering in terms of volume. I think that answers your question.

Also, Ruchi, see for an EPC player to grow at this speed. Thank you. It's happening around, and also considering the wind industry where we are. Where Margin is concerned, you have to go by the industry dynamics, and you can't charge more than... Currently, this is the situation, including the challenges which Shavana mentioned about the ROW and labor and romatil. So, it's all culminating into reduced margin, and we have to live with this for at least for next two to four quarters.

Okay, so these margins could just stay up until the next two to four quarters, that's what you're saying, right?

Yes.

Okay. Okay, thanks.

A reminder to all participants, you may press star and 1 to ask a question. The next question comes from the line of Darshan Chandra, an individual investor. Please go ahead.

Ma'am, if you don't mind anything, I can say anything. In the May con-call of FY26 the whole year, you mentioned that the margin will be mentioned at 18% to 20% and revenue guidance of 50% to 60%. And suddenly in the August con-call, the margin came from 20% to 12%. And now you are saying that turnover has increased and everything has increased and margin will remain 12%. Then in the make-on-call, why did you inform the shareholders that the margin will be maintained in the range of 18 to 20 percent? Simple.

I appreciate your attention. Yeah, please go ahead. I'm listening.

In May con call, at the May end con call, you should not have given that kind of revenue guidance and your share price has come down from 400 to 200 because of your guidance given, 18 to 20 percent. And you are saying that in this con call, the labor cost has gone up by 20 percent. We can understand that. It has not gone up by 100 percent. Your margin has came down from 20 to 12 percent. It is 40 percent down. You should not have given the guidance, Rosie guidance in May and Concon, ma'am. As a small shareholder, we are having a holding from two to three years. At least something has to be, Concon is there for shareholders to understand the business. And within a period of one month, you are changing guidance from 20 to 12%. How can we can trust you?

I understand your frustration, Mr. Chandra.

So, you see your recording on the make-on-call, you are given that same 20 to 21 percent of the Alkita margin guidance and 50 to 60 percent on the revenue guidance. It might be, revenue might come down, but how can the margin come down from 20 percent to 12 percent? And still you are saying that you will maintain here on, here on. In the make-on-call, you inform the shareholders, going forward, the margin will be under pressure.

Question Y, once you complete your question, we can answer.

Yeah, now we can go through.

Yeah.

Okay. So, we did give an insight about what we have observed and seen over the period of the entire year. If you see the entire annual financial year of 26, the average EBITDA was around 21 percent. And currently, what we are reporting is 12%. During the May numbers, when the numbers of financial year 26 were published in May, this insight was not summed up to the level where it was. We all know that the geopolitical conditions in terms of the hormonal effect, as well as the other factors, have been continued and prolonged beyond the limit. And that is the reason why the numbers have collapsed in a particular pattern. Yes, Kapil, you wanted to say something?

I want to also add that, see, Darshan Bhai, you have to understand that these are highly regulated industries, and the ROW issue is not in our control, okay? And the way we are looking at things, the evacuation, the ROW, the cost, All of it is coming together. The ROW rate has changed substantially from where it was. So can I go and change that? It's not possible, right? I am a player, and I have to operate within the way the things operate around me in the industry. So government has changed the ROW rates, and that has been changed for the good, because... The farmers are to be compensated. And there are other side issues also revolving this. As Shavana just mentioned, in case of solar, it is more consolidated. It is at one place. And in case of wind, there are bigger ROW issues because you have to put towers in specific places where you have wind, and you cannot choose on your liking. Sun is available at the place, wherever it is, and it is spread around the area. But in case of wind, it is more specific, and then there's government regulation on the ROW. And other issues which we mentioned about the raw material, the labor, and the whole geopolitical issue. So you will have to bear with us. We are giving the guidance as and when we can get hold of things and we can see what we can see. We don't want to talk something which is going to be wrong. And that is why we are giving a clear guidance that next four quarters are going to be here. The margin is not going to change. What we have to see is how we increase our volume and do a better job by having more and more turnover, which will help us achieve higher... Yes, sir, yes, sir.

Yeah, that is fine. Your revenue has been increased as given by guidance, but main question was in the May, the war already started from 1st March. March, April, May. That was the problem though. The main problem is everyone is asking about revenue, EBITDA margin guidance. It has come down from 20 to 60%. It is okay, but it has come down from 20 to 12% and you are saying that it will not increase from 12 to 15% also. That main problem is there, sir.

Yes, sir. But we can't lie to you, right? We have to say what it is. We have to guide you the way we think. And what we can see is that you are an old shareholder of ours. So I would request you to connect with me and Shabana personally. We'll try to walk you through what we see further and how you can, what kind of value addition you can see and where we are going. We'll give you a little one-on-one later on. With no, with for longer term, no issue on that. That's why we look forward to meet you and discuss.

Participants in the interest of time and fairness to others, please restrict yourselves to one question. For any more questions, you may rejoin the queue. The next question comes from the line of Sahil, an individual investor. Please go ahead.

Hello?

Yes, by the way, Sahil.

Am I on it?

Yes, yes.

Yes sir, I just wanted to ask, what is the foundation of the large holding group LOI, thanks.

I could not get to, could you repeat your question again, please?

Yes, what is the progress on the LOI that was signed with the RAS holding group, Dubai-based firm?

It's Saudi-based, Sahilji, and we are still in touch with them. Yeah, it's taking a little longer. We are in touch with them, and we hope to do business together. And as of now, there's nothing much to inform.

Okay, if I am not on the 18th, November is the last date, so will it be extended or can you give some right on it?

We can't comment on this. You will know as and when this happens. Okay, okay.

Thank you. Participants, you may press star and want to ask a question. The next question comes from the line of Ajay Asam, an individual investor. Please go ahead.

Hi, everyone. I hope you can hear me. So, ma'am, as you mentioned earlier, there is a project pipeline of around one gigawatt in future, and you told we might get around 70% in that. What can we expect from that revenue?

So, while we are very positive, about 70%, I would also like to mention here that these are the bid-based projects, and they are driven by the market economics, also with the bid capacity of the other players who are in the market. So, approximate value of about 1 gigawatt of projects would be around 7,000 crores, 7,000 to 8,000 crores, and these all are currently in the process of being bid, and we can envisage the result within coming 3 to 6 months.

Okay, okay, okay, understood. Thank you, thank you so much.

Thank you.

A reminder to all participants, you may press star and want to ask a question. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for the closing remarks.

Thank you all for joining the Q2 conference call for KP Energy. Thank you very much.

Thank you, sir. Thank you, ma'am. Ladies and gentlemen, on behalf of Share India Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.