IREDA: Road Ahead To Maharatna, Growth Drivers, Fundraising Plans & Q1 Updates | Pradip Kumar Das

And the one stock which has moved relentlessly since its listing has been Iradas. So who better than Pradeep Kumar Das, the CMD as well to talk about what the vision forward for the company is. Mr. Das always good having with you, you know, having you with us. We were just talking about as to how six months of the year are already over and what fabulous six months it's been for you at Iradar as well. Tell me what's the next half of the year, next one year looking like for you? Yeah, very good morning. Thank you. First of all, why you are talking of six months, Look at four years, four years and three months. So we have been consistently and continuously giving both quantitative and qualitative growth in our results. When I'm saying quantitative, that is that means the numbers, what do you say? And this quarter when our Samsung is gone almost 360, three, 182 percent up that gives the kind of thing wow. But if you see our first quarter previous year was little lower figure some 1200 and odd. So that was not a bad deal. But normally first quarter used to be slow. But what we have changed our approach now that we want to have a even kind of figures. But since the project construction happens by and large in a seasonal manner for September, the construction picks up. So therefore the funding from September onwards goes up. But what we have planned our sanction and disbursement this year, our sanction in the first quarter itself, we have focused on date has gone up. And as I said, four years and this one quarter we have given the numbers. But most importantly quarter by quarter we have improvised our governance standards, the net NPA from 7.18 in March 20, which came down to .99 in March 24. And I'm hopefully it will be sustained or further reduced in the quarter, we do not know. But now only we have submitted the information with respect to Samsung development and loan book. So all are quite encouraging figures. But apart from that one point, probably analyst or media is portable to catch. Look at our quickest reporting result that's fixed quality governance. Normally people consider that the government company these that, but I believe in government company. We have a well laid down policy procedure in place. And if you follow those and with my timeline approach in mindset we can deliver to the maximum. And if you look at we had already completed our AGM in last June 24th other organization, they are now struggling to close their accounts or preparing for AGM and all or thinking of AGM and all. And we have already given the provisional data on 30th itself with to the Stock Exchange with respect to quarter one region. And we are planning to have our audited, full audited result of first quarter again quickest among all the NBFC and banking as well as CPS in the shaded. No, clearly this is pretty well appreciated and a lot of strategies do it admire this speed you know for from Erida as far as declaring of numbers are concerned. But just to clarify what we meant what Aisha was actually meaning that since listing that's why the six months, surely your performance for four years is commendable, but we've started taking notice of it only since you got listed. Let's move on. I want to understand from you. Just a week back, we had an analyst from Elara talk about how the Section 54 E actually could be facilitating cheaper cost of funds for companies like like yours and of course Hudco as well. Can you help us explain how? How meaningful is it? How does the cost of capital come down due to 54 EC? See 54 EC is the capital gain bonds issued by the issuer for the subscriber contributes whatever capital gain they're having if they're investing that gain in that security for a defined period of three years as of now that is three years then they get tax exemption and that so with that by sale of shares I think as of now it is more than a year then it will be considered a long term gap again. And in case of properties that is more than three years. So and normally as as on date probably the rates are going around 5.25 in that space. Both RECPFC, they are by raising through that source. Other infra companies were allowed earlier also and many have opted out. But we being 100% green finance company, we do not have any kind of concessional support to support the sector which can speed up this 500 GW insultation in the country. We had requested our ministry and we have been requesting and our ministry has already forwarded our request to finance ministry. We are expecting that probably now that is in advanced stage and they will take a final call on this along with us Also I came to know Utkar had also submitted their request. If we get so in addition to PFCRDC will be another two agencies. So we can go to market and we can raise from the market assuming it was 5.25 or even 5.5. Today we are raising from the market at 7.57 point 4, something like that because one is back. We raised around the 500 crore for 10 years and it was 7.42. So against that if it is 5.2, so almost 150 to 200 bits difference will be there and if we pass them back to the sector, remember one thing the new and emerging sector, the challenge challenges are more. So when challenges are more, we lower that risk factor to the interest. So many projects which are not becoming bankable today because of the that lowering, if you have a cheaper source of borrowing then that much can be passed on to the sector. And the project which are not becoming bankable today, both will become bankable and that will further speed up this 500 GW target in the country. And if you see last four years also, why I am saying four years, four years we have a very focused dedicated mindset of having numbers but more into qualitative improvement with respect to quality asset, with respect to quality corporate governance, with respect to quality compliance of RBI. Sure, sure. Mr. Das, just because of the positive time, I quickly wanted to bring on a couple more points. You managed to sanction almost 5X kind of number on a year on year basis. What could be the full year number with respect to the sanctions that you have planned? And also there's a bit of a charter of FPO which might be on the cards on the funding part of things, are you well funded or there could be a you know, a follow on offer that might come through for the markets? See I have spoken earlier again I can if you see last four years or CSGR growth is much above than the country's are growth. So therefore demand side is there and only we have to augment supply side as an NBFC augmenting supply side. What I mean is having sufficient equity so that our we can go for maximum borrowing with this healthy car so that our rating is continued and sustained at replays table. Second, we have to focus on quality of the assets like as of now 2/3 of our assets are commissioned assets. When assets are commissioned, your provisioning requirement in our project are not that much required. Therefore our provision coverage ratio, these are the other thermal financing company ratio is quite huge gap. We had marched around 76 against they had around 70, we were 56, they had around 76 plus. So that 20% of higher provisioning coverage which they are doing which we need not do so which is supporting to improvise our bottom line. Lesser provisioning means my bottom line is up. So that is one. And 2nd, we have to always see being the sole extended arm of M and RE in stands for new and renewable energy. Whenever new sources of energy financing will come, challenges will be there. So we need to have granularity as well as new and challenging IE. So we need to have a balance out and in a new and challenging IE our due diligence, compliance, governance division monitoring has to be much more robust. And today the kind of review monitoring in what we are having in place every quarter we have a very close interaction with our borrowers to understand what is the sectoral issues, their project issue, state specific issue, country specific issue and what is issue with respect to us also. At the same time we share our concern with respect to their governance also. So that kind of win, win situation we are trying to maintain and in the time to come don't look at what number we are going to sanction or what number we are going to disburse. Definitely whatever rate we are maintaining we will sustain our further improvise on that. And I always tell my team don't look at number, look focus on our fundamentals since the market size is so huge and expectation from the market on us is so huge. So we have to be more responsible and sensibly you have to. So therefore, we are focusing on qualitative governance, best quality compliance with respect to RBI and trading agencies parameters. Oh, absolutely, Mr. Das and I guess the markets as well are following that number. Your stock is currently almost nudging 200. Its holding up nearly 4% in trade right now as we speak. But thank you so much for making time out and speaking with us today. Thank you.