Ladies and gentlemen, good day and welcome to the GEC and T India Limited First Quarter Ended 30th June 2021 for FY 20 21, 2022 Earnings Conference Call. As a reminder, all participants will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Sunil Mishra, Head of Investor Relations, GEC and G India Limited, Finishing and over to you, sir.
Thank you, Rupuja. Ladies and gentlemen, good evening. I wish everyone of you are safe. So welcome to today's conference call with the GE T and D India Limited Management team here. As informed, this conference call has been organized to present and discuss financial results for the Q1 ended 30 June for the financial year 2021, 2022.
Now let me first introduce my management team available on this call. We have with us Mr. Pitambar Shivnani,
who
is the Managing Director and Chief Executive Officer. Further, we have Mr. Sushil Kumar, who is the CFO. We have with us Mr. Nagit Priwani, who is our Products Business Leader.
We have with us Mr. Sandeep Janzaria, who is the Commercial Leader. We have with us Mr. Maria Sundaram Antony, who is our Projects Business Leader. We also have with us Mr.
Manoj Prashanth Singh, who is our company secretary. And lastly, we have Mr. Anshul Madan, who is the communications leader. So please note that this conference call is scheduled up to 6 p. M.
I hope you would have received the analyst presentation and the same has been uploaded on our website. I hope you would have read the disclaimer on Slide number 2. I would now request Mr. Pita Ambar Shivnani to begin this conference call highlighting key events of the quarter. Thereafter, Mr.
Maria and Mr. Nagesh updating us on operations and factories. Then Mr. Sandeep Jangdarya will be taking us to the market. Lastly, Mr.
Sushil Kumar will give us insight on financials. So I now invite Mr. Shivnani to begin the conference with his opening remarks. So over to Mr. Shivnani.
Thank you, Sudhil. Ladies and gentlemen, good evening. Thanks for joining the call. We hope you and your families are healthy and safe. I would like to start this call by giving you a brief overview about the last quarter and then I would request my other colleagues in the call to go through the details.
In quarter 1 financial year 2021, 2022, we continue to operate with full rigor however certain restrictions in few states due to continued to pose challenges. Our teams are continuing to deliver tirelessly even during these tough times. And for that, I would like to thank our GE colleagues who are working round the clock to serve our customers, our communities and our company. All our plants are fully operational as of today. During the quarter, our teams commissioned important projects associated with green energy corridor transmission system.
This includes commissioning of 765 kV gas insulated GIS at Sagi in Rajasthan as well as 400 kV gas insulated GIS substation for power grid. The substation will facilitate the evacuation of renewable energy getting generated in solar parks in Baghdad, Fatehrd and Bikaner at various beneficiaries. And Maria, my colleague, will give you the operational update in details later on in the call. Our biggest priority is growth in orders, and we improve our team's abilities to market, sell and service the products we have today. Though Sanjeet will talk about the orders in detail, but let me highlight one of them here, which is related to our continued winning history in 7 65 kV power transformer segment.
We received order of 6 more 765 kV power transformers from Power Grid Corporation of India under the transmission system strengthening scheme for evacuation of power from solar. Zones in Rajasthan under Phase 2. This is in addition to the order of 45 units of 765 kV transformers and reactor that we received from PGCI in the last quarter. Q1 has been a disruptive quarter as everyone has put to test by the virus and hence the sales has impacted our financials as well, but we were successfully able to reduce our debt by INR 24.5 crores. Nonetheless, we remain cautious going into the remaining part of the year given the uncertainty associated with pandemic, and Sushil will walk us through the finance part shortly.
We continue to use lean to improve our operations and our cost structure. I visited Vadudra Transformer Factory recently and was amazed to see countless Kaizen examples across the company. There is a huge thrust on using Lean to improve safety, quality, delivery and cost, we continue to believe the improvements underway are built on stronger fundamentals and thus are sustainable. We are continuing to lead the energy transition, lowering the cost of electricity and modernizing the grid with a focus on new products, platforms and technologies that enable profitable growth and cash generation over time. Today, we have a strong presence across 26 location in India, which includes 5 world class manufacturing units, 5 R and D centers, 13 offices and 2 service workshop.
We are not only producing in India for India, but we are also producing in India for globe. With such a strong footprint, we are deeply committed to service the growing demands for electricity in India and are equally focused to leverage the global power market through export of made in India grid equipment. We recently released our annual report for financial year 2021, which shares how we are tackling India's biggest power transmission challenges through innovation solutions, advancing grid modernization and leading the energy transition. India is making great strides towards renewable energy generation and has committed to more than double its non fissile fuel target to 4 50 gigawatts by 2,030. With a persistent focus on decarbonization and line the clock power, we believe that Indian energy landscape will continue to undergo a significant positive transformation.
This increased focus on clean energy is set to bring significant investments in India Renewable Sector. This will open a steady stream of evacuation opportunities for grid industry, primarily driven by increased green energy capacity, expansion of central and state utilities, growth in industrial sector and restructuring of aging assets. All in all, we fortify our competitive position and unlocking further upside potential in profitable growth and cash generation by selectively acquiring profitable business and staying laser focused on delivering those projects timely and with high quality. With that, I request Maria to provide further insights on operation during the quarter. Over to you, Maria.
Thank you very much, Pitambar. Good evening, ladies and gentlemen. Very excited to present the operations update for the quarter. We continue to really truly live to our purpose of creating the grid for the future. And I would really like to highlight with more than 73 plus project sites operational today across the region, We have had a chance to really commission some key projects, to some extent, which was highlighted by Mr.
Pitt Ambur. One was definitely the first for us in terms of PGPIL PAGI in Rajasthan, where this is our first GE make 7.55 kilobytes GIL, which was commissioned in the 1st month of this quarter, which was manufactured from our factory in Chennai. So and this is a huge milestone for us and as well as for our customers. And then the other one, which I really would like to highlight was the PDCRI at Bhuj in Gujarat, which is part of the green energy corridor, which is really being set up in the Kutch region of Gujarat. And this particular substation, which we commissioned in Burj, has a combination of 765 AIS and 400 kilobytes and 2 20 kilobytes GIS.
Significant milestone for us in terms of playing a role in terms of the transition energy transition, in terms of evacuating the green energy for the country. And then we also continue to make rapid strides in our neighboring country in Bhutan, where we kind of commissioned our second project there in Dokila, which is part of the Bhutan Power Corporation, where we set up the as a part of their modernization of the grid in Bhutan, we actually set up by the 66 kV GIS base, by base of 66 kV as well as power transformers and other transformers, 10 into 5 MVA transformers for the overall substation switchyard. So apart from this, we have actually made several other commissioning across the different parts of the country, more so on the eastern part of the country in West Bengal as well as in Jharkhand and then with our utilities like NTPC in Dharli, Pali. And then another important one was the evacuation of the solar power in Bikkhner, which was also a big accomplishment milestone for us in this quarter. And we also continue to play a role in terms of extending, extending the existing infrastructure for some of our customers like satellite in Kripura as well as Nelu in PGCL for PGPIL.
So we are very, very happy and excited that we continue to play a role in terms of creating the evacuation infrastructure for our customers, which connects the point of generation to the consumption. So with that, I actually hand over the mic to Nagesh to really take over the factory uptake.
Thanks, Maria. Good evening, all. In continuation to the discussions, today, I will just give you a brief about our factory in Vadada, which is a world class facility for the power transformers in India. We have this factory has a proud this is when this has been inaugurated in 2009 by the Prime Minister of India, who was then Chief Minister for the Gujarat state. We are the one who has delivered the first HVDC for 800 kV under Make in India initiatives in way back in 2015 in March.
This factory's capacity is about 330,000 MVA. And we have all ISO certification fully done in terms of 9,000, 14,000, 18,000. All ISO certification is in place. Extensive supply chain and quite a bit of efforts in terms of logistics and local localization capabilities, we are delivering the customers globally. We have also done jobs in exports from this plant.
The good part here is the testing facility, which is one of the state of the art testing facility, where we can test the transformer to grow 100 kV. And this testing facility has also been accredited by the NABL, the National Accreditation Board of Laboratories. Recently, my milestone what is achieved is in terms of delivering 500 units, 500 unit of 765 kV transformer and reactor. This is the 1st in class in terms of India, manufacturing plant delivering up to 500 numbers of 765 kV reactors. So with that, I hand over to Sandeep for covering the order intake, please.
So welcome, everyone, and thank you, Nagish. So Q1 FY 'twenty one, 'twenty two remained slightly muted in terms of the business opportunities which were there. We secured an order worth about INR472 crores, which was about 6.5% growth over last year INR443 crores. The main orders which were secured as carried by Pitambar is that 6 numbers, 500 MVA, 765 Kb under the green energy corridor. And of course, in the previous slide, Nagesh also said that we are the 1st company in India to deliver 500 units of 765 kV transformer reactor.
And we are ahead minuted by our most competitor. We also won another 20 by 33 kV AIU substation from Bhutan Power, continuing our success in Bhutan. And from KPCL Raichur, we won our order for replacement of 420 kV equipments. So there's a refurbishment which we are doing there. Taking further strides into the Renewables segment, we took one order for 400 kilos substation including transformers from Venu Power at Vikanir and one from Paurika for their wind power plant 220 kilobytes switchyard in Gujarat, Kambalaya.
So there are multiple, if you see, orders which are coming from the acquisition of renewable projects. Then of course, on Tanzania, we have taken order from Auguste International for supplying the CTs and CVTs from our factory at Hosur. And one of the prides for the quarter is that we have done a 3 year O and M contract from Tata Motors for 3 years for both of their plants for Sanand as well as the Pune plant. So this is we will be doing the O and M for their 3 years. So thank you very much.
And now I hand over to Sushil.
Thanks, Sandeep. Good evening, ladies and gentlemen. Hope everyone is safe and healthy. So this quarter, while Sandeep talked about muted market and order intake, so this quarter was also in the singular lines impacted by COVID wave 2 significantly. So the execution was also impacted for us.
On Page 9, we have given the split of orders and revenue between export and domestic. So overall, we did about INR 4.72 crores of orders, of which 36% came from the export market and 64% of the orders were from the domestic market. On the revenue side, we did INR 638 crores of revenue, of which 21% of revenue was done from the execution of export orders and about 79% of revenue was from the domestic orders. End of June, we had about INR 4,300 plus crore of order in hand, of which 63% of the orders come from the private segment, about 20% of the orders come from the state utility and 17% of the order in hand that we have come from the central utility and public sector undertakings. Moving to Page 10 on the financial profit and loss account.
So overall, I'll say that the financial performance was in line with the last year. So last year, Q1 was impacted by the lockdown. And similarly, this year, Q1 has been impacted by the health issues and the COVID wave too. But overall, we were at INR 638 crores of revenue, almost similar to what we achieved in the last year. Our EBITDA of RMB14 1,000,000 was slightly better than RMB3 1,000,000 EBITDA in the last year.
And the loss before tax of RMB25 crores is slightly better than RMB26 crores of loss that we had in the last year. On the cash and debt front, we generated about INR 25 crores of cash from operations in this quarter. And accordingly, we were successful to reduce our debt by INR 25 crores. Our net debt end of June 30 stand at around INR 135 crores. So with that, we'll move to the question and answer.
Thank you.
Thank you very much. So we'll now begin the question and answer session. The first question is from the line of Lainu Bate from IFRS. Please go ahead. Yes.
Hi. Good evening, sir. I have few questions. So my first question is, if you look at the execution itself in this quarter, while it is similar to the previous year, most of your other peers who have reported results have actually reported strong double digit growth on a pretty depressed base last year. So can you help us understand where did we lag in terms of execution headwinds and bottlenecks, while rest of the other peers were able to offset a good portion of these headwinds?
And by when do we expect all these headwinds to ease and growth to revert back?
So Renu, if you see, our 3 factories are in Tamil Nadu. And Tamil Nadu was severely affected by COVID actually. So practically, 3 factories were total locked down for 9 days. Actually, they were non operational. So that has also impacted our execution.
And then the opening was also slow. It was not after 9 days immediate opening. So this impacted the execution in the last quarter.
Okay. But no other project delays or otherwise that we see across segments?
No, I don't think there are any major project delays or other things across the segment.
Sure. So the second question is on the other expenses side, back on the P and L, as you see as in we were hovering at INR 85 to INR 1995 crores kind of other expenses with a much better revenue run rate. And this quarter, other expenses have shot up to INR 105 crores. So can you help us understand in terms of what kind of one offs are part in the current quarter? What is further provisions, the write offs?
So just to understand the steady state run rate of the overhead.
Okay. So last financial year, we had about INR 370 crores of other expenses, if I correctly remember, and that gives an average of about INR 91, INR 92 crores per quarter. This quarter, the other expenses have gone up a bit. There are few heads where the expenditure have gone up and there are few other areas where we have been able to control. 2, 3 areas where the expenses have gone up are 1 related to the freight expenses related to the export projects.
2nd is the ForEx loss due to adverse currency movements. 3rd is the reimbursement of business support charges to grid headquarter. And then we have improvements on various heads like rates and taxes and other many areas like data management charges and so on. So overall, I think this run rate of INR 100, INR 5 crores is generally what is going to continue.
What was the quantum of ForEx symptom loss? Can you quantify that?
ForEx loss was about INR 6 crores to INR 7 crores versus a gain in the last quarter.
Got it. So my next question is essentially if you look at the business, especially from the order inflow and marketing perspective. So, A, what is our exposure on the non utility based market? We have received a small O and M order from Tata Motors. But otherwise, on the industrial sector, what is the kind of current exposure?
And on a very broad base, how does that look versus the previous trend? The point is if you see manufacturing CapEx or industry CapEx picking up, do we have a fair share addressable market to increase the wallet share from the customers in this segment?
So, hi, Renu. Sandeep here. So basically, what's happening, yes, we are seeing the CapEx which is coming back into industry. But for us to have a meaningful play in the industry, we require large capital because mostly we are operating into 3 20 kilograms and 400 kilograms segment or 765 kilograms segment. So any industry which is coming up when it has a huge power requirement, something like maybe 300 megawatts or 500 megawatts, those kind of power requirements, then they go for such large switch.
Otherwise, it is like Nanak within 33 kV or 130 kV substation, where our play is not there. Of course, we are seeing some CapEx coming in the metal side, for example, on the steel side, on the aluminum side. So there are plans which the larger metal players are discussing. We've seen some very small traction happening. So probably maybe with next 1 to 2 quarters, we will see some new tenders coming, which would be then addressable by us.
But nothing much on the data center for us?
Nothing much on the data centers primarily because data centers are again again they are like power bezzling kind of applications, but the maximum voltage which is required is like 220 KV. So we have certain products which we are offering, for example, GIS, etcetera. In that end, in fact, we are doing 1 or 2 we are supplying to various ECPs as well for the products for the data center. But the overall application on the substation in the data center is not like a very big number.
So it's not much a valuation there from
the market spaces? No. If I just to give you a data center will be having a substation which might be costing about, say, somewhere between about INR 20, INR 25 crores, just a ballpark number.
Got it. And just one last clarification on the repeat order which we have done or the additional order which you won from Power Grid for the Rajasthan evacuation in order for the projects, has it come at better pricing in terms of factoring in all the cost inflation or the pricing would be similar to the old orders which we had won in Feb March during the Q4 of 2021?
No, it's better than the board we had won in the Q1 sorry, in the last quarter of the last year because the metal price increases were captured when we took this order.
Got it. Thanks for the clarification. I'll get back in the queue with more questions. Thank you and all the time. Thank you.
Thank you. The next question is from the line of Pavan Vithani from SEI Mutual Fund. Please go ahead.
Thank you for the opportunity. My first question is on the gross margins. From last couple of years' levels of 23%, 25%, With this quarter, we did see an improvement of almost 300 bps plus Y o Y and 700 sequentially. If you could give more color on this? And what is a sustainable level that we could expect on the gross margins front?
Thanks, Bapin, for the question. This quarter, we have a higher mix of revenue from the products business in the domestic and the export market because the turnkey project sites were shut down and we had some other COVID related challenges. So the improvement in mix towards the product has led to this improvement for the quarter. Won't be giving a long the guidance on the margin, but on the long term, I think last financial year, we had about 26.5% as a gross margin. And prior to that in the financial year 2019, 2020, we had a gross margin of around 27.5% or 28% in that range.
So on long term basis, that will be the margin subject to the commodity price challenges, etcetera, with management just trying to mitigate. So as we do more execution of turnkey business in the subsequent quarter, the average of gross margin should come to the earlier years.
Sure. That's helpful. The second question again is a continuation on the demand front. If you could give us more color in terms of HVDC because we did take an enabling resolution for a related party for bidding into HVDC project. So what are the kind of projects that we are expecting over the next 2 to 3 years?
What's the kind of size in that? And also, there is a project with a VSC based technology. So will GT and D be able to qualify in terms of technology for that platform of technology?
So, Bhavin, it's Andy Piyush. So I think if you really look at, for example, 2, 3 years' time frame, as you know, we have been talking about Laila Dagh. So, what we understand is that, yes, there are certain developments by which Laila Dagh as an opportunity for initial 5 gigawatts might come out in the market next year. And definitely as you said that this will be a VFC technology project. And just to update you, GE has delivered projects in Europe with BSE Technology.
I will not comment anything about the qualification part, but just to give you the confidence that yes, we have delivered projects with BSE Technology. Of course, you know, Adani, as we have been discussing this, already under discussion. And finally, if you really look at the report of the standing committee, there is one more project which has been cleared from Rajasthan to GC. But because these projects would be like due to the amount of CapEx requirement, the timeline, it's very difficult for us to predict. But immediately, this looks to be a sustainable pipeline.
In addition, I would like to add that the RPT approval, which was taken in the AGM, was the order that we expect to be decided in the market in this year with the private players for the Western region. Sure. That's helpful.
The last question is on the competitive intensity in the pricing. So sometime in middle of last fiscal year, government actually put non tariff barriers on the Chinese. So if you could give us some color on in terms of the pricing and the margins for the products that for the projects that are coming up now, are we actually seeing any improvement in that? And secondly, alongside that, one of your peers did mention that the delivery time line, especially on the transformer, has elongated. So from 6 months now, it has been 18 to 24 months.
Any color on that will be very helpful. That's my last question.
So, Bhavan, just to give you an update, definitely, I will not say the prices have gone up because even after the Chinese competition has gone, I will say Chinese companies not participating, still there is an overcapacity in the market. But just looking into the material prices, which have gone up, Definitely the prices have gone up in the market because everybody has got affected due to the material component. That is one. And just to answer your next question about transformer deliveries, yes, definitely looking into the loading situation and market demand, if there are all the manufacturers are not able to offer shorter delivery projects. But depending upon the capacity, depending upon the requirement, there are certain calls which are being taken individually by companies.
So for a large project, definitely it will be like minimum 18, 24 months. But if suppose somebody requires 1 or 2 transformers, then definitely manufacturers are able to adjust to manage it.
Sure. Thank you so much.
Thank you.
The next question is from the line of Ranjit Shivram from ICICI Securities. Please go ahead.
Yes. Hi, sir. Good morning. Sorry, Bharat, good evening. Like a continuation of the previous question, in the last, I think the tender for that overlap portion of HDB, EBT, as a example, we believe that these are
I'm sorry to interrupt you, mister Shivram, but we cannot hear you properly. Your voice is breaking, sir.
Can you hear me now?
Yes. Yes.
Yes. So my question pertaining to this AC technology qualification for it. In the last tender in which I come out for this in the Kerala session, I think these are not qualified. So currently, we are saying that we are qualified. So is it prior to just that we got the qualification?
Just to get some clarity on that. So basically, the qualification requirement was that you should have done a BSc project, which we have done now. So that's why we are qualified now to participate in BSc. And of course, when we are talking about such type of technology, we definitely will require the kind of confidence also for the commissioning that we have now. Okay, okay.
That's helpful. And then we look at the exports even this quarter, our export was 21%. In last year, it was 22% increase. So do you see this trend continuing? Like last year we saw 30% growth in exports.
But on that high end what will this trend of exports being in that 22% to 23% range continue or do you see that plateauing or coming down?
So last year, we made improvement in the export. We had done about 22% of the revenue from export in the financial year 2021 compared to 18% of revenue coming from export in financial year 2019 2020. As you see on the order booking chart also, our export share of order has gone up at least for the quarter. And even in the last financial year, the exports were higher in terms of orders. So our effort is to compensate the muted domestic market with the export.
And if we are able to win successfully, the revenue share should follow accordingly and the export revenue should increase for the coming quarters.
What's your share of export in our order, Dick?
It's given on the Page 9.
You have given it for the order indices.
Okay. You're talking about order book. I don't have that number readily available. So we'll have to probably revert back to you separately.
Okay. And what's the current receivable bill?
Just a moment. Give me some time, maybe I'll come back to you in few minutes on this specific receivables question.
And again, we were very much confirmed this clean energy corridor couple of quarters before. So what has actually transpired in terms of this green energy corridor opportunity? What's the kind of enthusiasm we are seeing in terms of the employee levels? If you can throw some color on that? So Ranjit, I think Sanjay, if you really look at green energy corridor, the government came out with 3 large packages in 2019, 2019 about 3rd quarter.
And but since then, there have been about 4 or 5 packages which got materialized last quarter, last quarter of last financial year. But now we see a lot of traction happening. There are about 5 to 7 packages, which for developers are now due sometime between August and September. So I think not exactly so it will begin in September. They would not be coming out in the market and placing orders in September.
But I think in the next quarter, it will be a big market due to this green energy corridor, which will be coming in the transmission side.
Ranjeet, on the working capital, I'll first talk about working capital. So our working capital is around INR 400 crores end of June, and this has improved versus March. At present, the working capital of INR 400 crores is roughly about 42 to 43 days of sales. And within this, the trade receivable is around 75 days. And in this trade receivable calculation, I'm not including the retentions, which are not contracts with you.
In addition, I would also like to highlight that last financial year, we generated a cash flow of INR 270 crore. And in this quarter, we have generated about INR25 crores of cash flow. So overall INR300 crores of cash flow generation in the last 15 months. Most of this has come from the improvement in working capital and especially the focus on the trade receivable and reduction in the receivable.
Okay. And sir, we are hearing regarding this distribution reform on Amyl. So is there any chance that these will have some products or we are completely out we don't have any participation in that range of voltages? In distribution, of course, we don't have a very large range of products, Sandeep. But definitely we are present because of our automation system.
So once there will be an upgrade into the distribution system, more smarter systems will be put in place. So their automation is going to play an important role. And apart from that, there will be ADMS packages which will become for hundreds of towns which will be there to make the distribution system again smarter in terms of controls, etcetera, and monitoring. So the company also has a strong portfolio in terms of ODMS systems as well. It's largely the automation part where we will have a larger role because most of the low and medium voltage products have gone to a slight decline in the specification.
Yes, you are right. Because most of the distribution utilities are at 33 kV and in the split what happened the products with GE 66 kilobytes and above. Of course there are certain for example, Gujarat or Chandigarh, there are few distribution companies which still do up till like 66 kilobytes or 136 kilobytes but that's very limited still in nature. Okay. So the automation market is a lucrative area for us for when this distribution performs actually kicking on the ground?
Definitely. Okay. And is there any other opportunity in the next next time, month apart from this GDC and this distribution? Is there anything that you are looking at which looks exciting? From the state front also, do you see any of the state governments being relatively more active?
So I would say that there are few state governments which are active. For example, there are few tenders which are coming from Telangana, there are few tenders which are planned for Eritha, etcetera, but maybe something is planned from Bihar. But a sustainable IP sustainable set of projects is still not set up the pace what we had in 2020. Okay, sir. That's all my side.
Thank you and all the very best. Thank you, Ranjit.
Thank you. The next question is from the line of Renu Wei from ISL. Please go ahead. Renu Baid, please go ahead with your question. Your line is unmuted.
As there is no response from the line, we'll move to the next question, which is from the line of Donald Souda from Phillips Capital. Please go ahead.
Thank you for the opportunity. Just following up from Ranjeet's question on states. So more from a longer term perspective, sir, the previous cycle, we saw that as PGTI was building the national grid, but respective states also sort of upgraded their networks from up to 220 or 400 KB. So other than these sort of pocketed states which are throwing up tenders here and there, is there like a program over the next 5 years that will drive the next leg of ordering in states? Or do you think that, that is largely behind us and sort of it will be more tacky in that sense in terms of opportunities coming out of state.
But in the last cycle states, if not equal to PBCL, but were at almost 60%, 60% of their power grid was in terms of ordering, which in the last 2, 3 years, we've not seen that level of ordering in states as well. So would appreciate the comments on that.
So our assessment is that definitely state should come up because whatever renewable power is getting generated at the end, as when it gets transmitted from the network which is built by PBCG players or the central utility eventually based to state. And state has to build the transmission network so that this power reaches to wherever it's designed for. So there has to be an investment which should come from states. So we are just waiting for the renewable sector capacity addition to pick up so that even the straight transmission network should also start coming out with a more sustainable pipeline.
Understood. And my second question was on one of the large HVDC projects that you had highlighted in the Q4 call, which was Rajasthan UP. Given the size and the configuration and given that it typically takes almost 3 years plus kind of to build out projects like this. So do you believe that given that there is a transmission waiver, the transmission charge waiver on renewable projects, which sort of now expired somewhere in early 2025. Do you believe that, that expiry of such a waiver could sort of derail the project?
Because one of the key triggers for this pickup in DBCD projects for DC was that there's very little transmission charges attached. So do you think that this one large project, which was almost INR 20,000 crores kind of of size, could get derailed because the project will not come up in time even if it was awarded by end of FY 'twenty two in time to make up for that deadline? So out of the 3 odd HVDC projects, do you think that one will fall off?
So I am not very sure on that because the government keeps on. So if you really look at that when last time they were expired, the government has extended the timeline. So I think that's probably more for the developer who would be investing into that project to take a call. I think it's very difficult for an EPC player or a manufacturer to comment on the viability of the project because of this government policy.
Got it. And my final question was, sir, at the end of Q1, we are sitting on an order book, which is almost 24%, 25% lower on a Y o Y basis. And I remember that you are targeting to do the same kind of top line this year as you did in FY 'twenty. But given how Q1 has panned out, do you still believe that you can get there given that you will be running out of order book or growth avenues beyond if the orders actually don't pick up now?
So I think we will be able to do that level even though we don't give a forward looking statement, but we expect a growth in orders in times to come because the COVID wave 2 is over and there are a lot of TVCB packages which are coming up for finalization in next few months. So and we have a backlog of $43,600,000,000 So we will be able to cater to the balance part of this year as well.
But just to add on, I think if the orders do not pick up soon, there could be an impact as well. And also there is an uncertainty of COVID-three. So those are some of the elements which may impact the revenue execution for the year.
Understood. Thank you and all the best,
sir. Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to Mr. Sunil Mishra for closing comments.
Thank you, Rituja, and thank you, everyone, for your participation. In case if you have any other questions, then please feel free to contact me or Mr. Anshul Madan on our e mail ID. So with this, we conclude today's conference call. Thank you again.
Thank you. On behalf of GEP and India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.