Yes he clearly mentioned 2027, and I think thats good as this is asset heavy business IMO.
What co is doing, if you hear interview carfully, he says LAND is everything- very importamt component for them. Both for IPP and CPP, they are using land.
1 MW = 3.5-4 acre land = 6.5 bigha = 1.5-2 cr (20-25 lakh/ bigha land rate in villages where co is working – my assumption)
1 MW ex land development cost is = 30000*1000 = 3 cr
So if you see co is getting immense benefits of having land in place.
I think co is having land till 500 MW cummulative capacities.
Then co needs to add land to grow further and cost will go up.
Old annuity income will help co to great extent in future.
Now lets take asset payback currently = 3 -3.5 years as co is having land bank.
Post 500 mw, that payback will increase to 5.5-6 years. Not good, not that bad either.
Some positive points from interview:
- Accelarated depreciation in IPP is helping to save tax and save cash for future growth.
- 860 MW evacuation in place
- 100 cr annuity revenue will increase to 300 cr in 2026-27.
- co is now getting lower interest loans as size is getting bigger day by day
Biggest risk is gov policies.
Just sharing some long term views and I am holding from lower levels
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