Summary Links:
* Summaries created by AI. Please verify by checking the actual call transcript.
Exicom Tele-Systems Limited Q1 FY'25 Earnings Conference Call Summary
Overview • Date of Call: August 6, 2024 • Key Management: Anant Nahata (Managing Director), Shiraz Khanna (CFO) • Focus Areas: EV Charging and Critical Power Solutions
Financial Performance • Critical Power Business: • 16% year-on-year growth • Driven by demand for lithium-ion batteries and power management solutions • Standalone Revenue: • 59% year-on-year increase • Gross margin improved by 10% • EBITDA: • Rose to 9.8% • Profit After Tax (PAT): • Increased to 7.2% • Order Book: • Stable at INR 160 crores
Electric Vehicle (EV) Charger Business • Growth: • 85% growth in vehicle electrification over two years • 13% quarter-on-quarter decline attributed to FAME II subsidy removal and high inventory • Market Outlook: • Expected growth from INR 1,300 crores to INR 9,000 crores in five years • New Initiatives: • Launch of distributed chargers with positive feedback • Exploring distributor model and direct-to-consumer sales • Partnership with Hubject for roaming solutions
Critical Power Solutions • Focus: • Power conversion and backup solutions for telecom networks • Opportunities: • Government projects like BharatNet for rural broadband • Local manufacturing and service capabilities enhance market position • New Projects: • Tender for power and solar solutions spanning two to three years • Supplied over 100 megawatt hours of lithium-ion batteries in Q1
Q&A Highlights • Growth Targets: • Telecom market expected to grow at 8-10% CAGR; EV charging market at 40% • Capacity Utilization: • 75% overall; 90% for critical power; 70% for EV segments • Lithium-Ion Batteries: • Major revenue source from telecom • Investment Plans: • Netherlands subsidiary for international expansion; Hyderabad plant production expected by April 2025 • Employee Costs: • 10.5% increase due to salary increments and new hires • Sustainable EBITDA Margins: • Aim to improve upon last year's 12.5% margin despite short-term costs
Conclusion • Anant Nahata expressed gratitude for participants' time and support, indicating a positive outlook for the company's future despite current challenges.
Exicom Tele-Systems Limited Q4 FY '24 Earnings Call Summary
Announcement Details • Date of earnings call: May 29, 2024 • Approval of audited financial results: May 28, 2024 • Key executives present: Anant Nahata (Managing Director), Shiraz Khanna (CFO) • Hosted by: Monarch Networth Capital
Financial Performance Highlights • Revenue Growth: • Overall revenues increased by 44% to INR 1,020 crores in FY '24. • Critical power business grew by 59% due to 5G deployments. • EV charging segment saw an 11% growth. • Order Performance: • Confirmed open orders: INR 360 crores (up from INR 290 crores). • Total orders booked: INR 1,106 crores (up from INR 952 crores). • Key Financial Metrics: • Gross margins improved. • Finance costs reduced. • Days Sales Outstanding (DSO) decreased from 166 to 81 days. • Profit Before Tax (PBT): INR 93 crores. • Cash excess after investments: INR 28 crores. • Return on Equity (ROE): 18.4%. • Return on Capital Employed (ROCE): 26.4%.
Strategic Initiatives • Manufacturing Complex: • Integrated manufacturing complex in Hyderabad expected to be operational by April 2025. • R&D Investments: • Focus on enhancing product offerings and maintaining market relevance.
Market Insights and Future Outlook • EV Charging Infrastructure: • Emphasis on developing infrastructure to meet rising demand for electric vehicles. • Data Center Projects: • Ongoing pilot projects in the data center segment. • Renewable Energy Sector: • Continuous evaluation of opportunities, currently focused on telecom, data centers, and EV charging.
Investor Questions and Management Responses • Production Stabilization: • Timeline for peak utilization revenue depends on market conditions. • EV Charger Segment: • Infrastructure development precedes vehicle launches; confidence in future growth. • Localization of Battery Manufacturing: • Focus on home-grown technology and local manufacturing. • Tax Regime: • Shifted to a new tax regime of 25%.
Conclusion • Anant Nahata expressed optimism about Exicom's future growth and thanked participants for their feedback.