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Disclosure Details • Date of disclosure: August 8, 2024 • Earnings call date: August 6, 2024 • Hosted by: Elara Securities • Key management: • Udai Singh (Managing Director and CEO) • Suparna Bhattacharyya (CFO) • Mohit Agarwal (Head of Investor Relations) • Transcript availability: Company website
Company Vision and Economic Context • Aim to lead in the digitized energy sector with innovative solutions. • Positive economic developments in India, including: • INR 11.1 lakh crores budget allocation. • Focus on renewable energy, transportation, and infrastructure. • Significant funding for pump storage projects and renewables.
Product and Market Developments • Introduction of new products for solar energy needs, including an 11 kV distribution system. • Successful initial orders from solar developers. • Implementation of analytical SCADA systems in major projects. • Growing acceptance of Indian-made goods in international markets.
Financial Performance • 19% increase in orders and sales for the quarter. • Backlog of INR 1,300 crores. • Q1 sales increased by 19.7% to INR 592.9 crores. • Gross margin improved by 3.6 points; EBITDA grew by 63%, and PBT surged by 86.9%.
Q&A Highlights • Discussion on GIS portfolio and urbanization demand. • Acknowledgment of rising expenses and commitment to cost management. • Insights on order inflow, employee count, and sales composition. • Strong gross margins attributed to product mix and operational efficiency.
Future Outlook • Kolkata factory expected to be operational by April next fiscal year. • Exports currently account for 7-8% of backlog, with optimism for growth. • AI's role in enhancing manufacturing quality and supporting data center business. • Focus on market opportunities in trust and infrastructure for revenue growth.
Conclusion • Management emphasized commitment to sustainable growth and operational efficiency while addressing market challenges and opportunities.
Disclosure Details • Date of disclosure: May 29, 2024 • Earnings call date: May 23, 2024 • Hosted by: Elara Securities • Key management present: • Mr. Udai Singh (Managing Director and CEO) • Ms. Suparna Bhattacharyya (CFO) • Mr. Mohit Agarwal (Head of Investor Relations) • Transcript availability: Company website • Signed by: Bhumika Sood (Company Secretary and Compliance Officer)
Key Highlights from the Call • Company Growth: • 24.2% increase in revenues • 4-point rise in EBIT • Recognized as a top employer by LinkedIn and awarded French Group of the Year
• Growth Drivers: • Government initiatives (e.g., "Make in India") • Green energy goals • Advancements in electric vehicles and data centers
• Customer Engagement: • Importance of hands-on demonstrations • Showcased two setups highlighting product strengths
Financial Performance • Fiscal Year 2023-2024 Results: • Orders increased by 26.9% to INR 1,951 crores • Sales rose by 24.2% to INR 2,207 crores • Gross margins improved by 4.4 points to 37.1% • Highest revenue and profit since inception • 14% increase in order backlog
• Expense Insights: • 26% rise in other expenses in Q4 due to risk coverages and provisions • Focus on core and emerging market segments, especially in modernization and digital solutions
Sector-Specific Insights • Data Centers: • Positive outlook with growth potential in key locations • Expected contribution of approximately 15% to overall sales • Types of data centers discussed: hyperscale, colocation, and emerging enterprise
Q&A Highlights • Financial Queries: • Clarifications on increased expenses and warranty provisions • Discussion on cash flow and inventory dispatch timing
• Market Concerns: • Acknowledgment of order inflow slowdown due to elections • Optimism for growth post-election
• Transformer Market: • Estimated market size: INR 1000 crores with a growth rate of 7-8% • Current revenue contribution from transformers: approximately 30%
Conclusion • Emphasis on the company's role in data center operations and power management • Mixed growth across sectors with significant private investments noted • Updates on a new greenfield facility expected to start operations by the end of the financial year • Management expressed gratitude to investors and analysts at the call's conclusion.
Disclosure Details • Date of disclosure: February 14, 2024 • Event: Investor conference call on February 9, 2024 • Focus: Q3 earnings performance and nine-month results ending December 31, 2023 • Transcript available on the company's website • Moderated by: Harshit Kapadia (Elara Securities) • Featured management: • Udai Singh (Managing Director and CEO) • Suparna Bhattacharyya (CFO) • Mohit Agarwal (Head of Investor Relations)
Key Highlights from the Call • Company Vision and Events • Udai Singh discussed the company's vision in the digitalized world. • Success of DistribuELEC event with over 700 registrations. • Positive outlook due to government CapEx budget and GDP growth.
• Financial Performance Overview • Suparna Bhattacharyya reported: • Q3 order inflows: INR 419.8 crores (34.5% YoY increase) • Total sales: INR 743.9 crores (29.5% YoY increase) • PBT: INR 94 crores; PAT: INR 91 crores (both YoY growth) • Focus on top-line growth and expense optimization.
Q&A Highlights • Growth Trajectory • Acknowledgment of double-digit growth since FY '22. • Growth rates depend on various factors, including government policies.
• Facility and Revenue Insights • New Vacuum Interrupters facility in Kolkata on track for late 2024/early 2025 completion. • Revenue breakdown: 12% from services; growth in transformers and switchgears.
• Energy Transition Commitment • Schneider's role in India's energy transition emphasized. • Commitment to managing solar energy and bidirectional flow.
• EcoCare and Market Share • EcoCare subscription program discussed as part of EcoStruxure framework. • Challenges in quantifying addressable market share due to varying customer needs.
Conclusion • Udai Singh confirmed: • One-third of business from transformers; remainder from switchgear and services. • Order book at INR 1,010 crores, reflecting 24-25% growth over nine months. • Emphasis on maintaining growth momentum and commitment to quality solutions.
Disclosure Details • Date of disclosure: November 14, 2023 • Earnings call date: November 8, 2023 • Hosted by: Elara Securities • Key management present: • Mr. Udai Singh (MD and CEO) • Ms. Suparna Bhattacharyya (CFO) • Mr. Mohit Agarwal (Head of Investor Relations) • Transcript availability: Company website • Signed by: Bhumika Sood (Company Secretary and Compliance Officer)
Management Insights • Udai Singh's Opening Remarks: • Focus on profitable growth through digital and sustainable products. • Positive market outlook driven by government initiatives (e.g., Make in India). • Key focus areas: RDSS scheme, semiconductor sector, green hydrogen mission, data centers, electric vehicle infrastructure. • Recent achievements in distribution solutions highlighted.
Collaborations and Innovations • Collaborations with private and government distribution companies. • Notable projects: • Gas-insulated board and Premset technology with a leading distribution firm. • EcoStruxure Transformer Expert (ETE) solution for transformer health monitoring. • Digitalized panels for the aluminum sector and automation solutions at an airport. • Growth in service orders due to modernization and digitalization.
Financial Performance Overview • Suparna Bhattacharyya's Financial Update: • Orders increased by 64.7% YoY to 492 Crores for Q2; 40% to 938.77 Crores for H1. • Q2 sales at 495.81 Crores (up 17.8%); H1 sales at 991.06 Crores (up 25.1%). • Profit after tax improved to 8.6% for Q2 (up from 2.1%). • Outstanding order book: approximately 1215 Crores.
Analyst Questions and Discussions • Topics covered: • Gross margins, employee expenses, Kolkata plant status. • Breakdown of order book: 66% systems, 17% transactional, 17% services. • RDSS scheme government investment of ₹3,03,000 crores expected by FY2026. • Transition towards a solution-based model for higher margins.
Sales Mix and Market Insights • Sales mix: 40% from government, 60% from private sector. • Order backlog growth: 24% YoY. • Export revenues for the quarter: 31 Crores. • Minimal supply chain disruptions reported.
Concerns and Future Outlook • Potential slowdowns due to upcoming elections; some government orders may be deferred. • Capacity realization operating at optimal levels. • Closing remarks included Diwali wishes and gratitude from management.
Call Overview • Date: August 11, 2023 • Hosted by: Elara Securities • Key Management Introduced: • Vineet Jain (Head of Investor Relations) • Amol Phatak (Whole Time Director) • Suparna Bhattacharyya (New CFO) • Transcript available on the company's website.
Economic Landscape • Indian GDP growth: 6.1%, exceeding expectations. • Positive macroeconomic indicators: gross capital formation and industrial production projected to grow 6% to 7.2%. • Focus on five key sectors: • Power and grid • Mining and metals • Mobility • Data centers • Industries/buildings
Company Initiatives • Active role in the government's Revamped Distribution Sector Scheme. • Emphasis on greener practices in the mining sector. • Significant investments in metro rail and lithium-ion manufacturing in the mobility sector. • Rapid expansion in the data center market, driven by major companies.
Financial Performance • 21.4% increase in order intake. • 33.3% rise in total sales for the quarter. • Gross margins improved, leading to: • 10.5% EBITDA • 7.1% profit after tax (PAT) • Revenue mix: • 11% services • 24% transactional • 65% system business
Strategic Focus • Increase in service revenue aimed at long-term growth. • Partner-driven transactions emphasized as a key strategy. • Order book reported at approximately Rs. 1120 Crores.
Operational Insights • Manufacturing setup utilization between 60% and 70%. • Kolkata plant expected to complete in 3-4 quarters for domestic and global markets. • Addressing accumulated losses with updates expected in September results.
Product Developments • Introduction of EcoStruxture Transformer Expert, a digital solution for the transformer industry. • 70-75% of offerings now digitally enabled, with a goal of reaching 100%.
Market Trends and Future Outlook • Positive pull-through effect from smart meter implementation on software demand. • Focus on cash collection and risk management in order inflow strategy. • Ongoing integration efforts for acquired low and medium voltage business. • Optimism about growth prospects and capacity for expansion without significant capital expenditure.
Conclusion • The call concluded with positive interactions and a focus on future opportunities, highlighting the company's growth trajectory and strategic initiatives.
Disclosure and Call Details • Date of disclosure: May 26, 2023 • Earnings call held on: May 24, 2023 • Moderated by: Mudit Kabra (Elara Securities) • Key participants: • Sanjay Sudhakaran (Managing Director & CEO) • Mayank Holani (CFO) • Transcript available on the company's website
Economic Outlook • Sanjay Sudhakaran's Insights: • India faces growth challenges due to global recession fears and reduced IT spending. • Long-term trends: electrification, digitization, decarbonization. • Projected GDP growth for 2023: 6% to 7%. • Promising sectors: urban transportation, cloud services. • Focus on smart technology and digital solutions.
Financial Performance • Mayank Holani's Report: • Q4 orders growth: 10.6%; FY23 growth: 10.3% (Total: Rs. 15,376 million). • Q4 sales growth: 20.7% (Rs. 410 crores); FY23 sales growth: 16.1% (Rs. 1,777 crores). • Highest revenue in company history. • Gross margin: 37.6%; EBITDA: 15.8%; Net profit: Rs. 448 million. • Order backlog as of March '23: Rs. 10,735 million.
Strategic Focus • Shift towards higher-margin segments in order bookings. • Emphasis on solutions-oriented approach, particularly with the Ecostruxure platform. • Commitment to enhancing market presence through thought leadership and customer engagement.
Operational Insights • Challenges in measuring business performance due to digitization and transactionalization. • Current order backlog typically executable within 7 to 8 months. • Anticipated growth from a new factory in Kolkata. • Opportunities identified in the railway sector, especially urban transportation.
Capital Expenditure and Inventory • Recent CAPEX: Rs. 38 crores for machinery and safety refurbishments. • Planned significant CAPEX for Kolkata facility in FY24 (minimum Rs. 100 crores). • Inventory increase attributed to normal work-in-progress and project demands.
Future Outlook • Positive sentiment regarding order growth and backlog. • Addressed concerns about capacity to execute orders and electronic shortages. • Focus on electric mobility and EV charging infrastructure. • Overall positive outlook for the company's future performance.
Conference Call Details • Date: February 14, 2023 • Disclosure Submitted: February 17, 2023 • Moderated by: Harshit Kapadia (Elara Securities) • Key Management Present: • Sanjay Sudhakaran (Managing Director) • Mayank Holani (CFO) • Vineet Jain (Head of Investor Relations)
Economic Outlook and Business Segments • Global Concerns: Ongoing recession fears. • India's Resilience: Driven by domestic demand and supply chain rebalancing. • Government Budget Focus: Significant funds for renewable energy and infrastructure. • Growth Opportunities: • Digitization of energy systems • Green hydrogen initiatives • Infrastructure investments • Emerging segments: EV charging, data centers, renewables
Financial Performance • Order Intake Growth: 6.7% increase for the quarter; 10% year-to-date. • Sales Performance: • Quarter sales down 4.3% (high base effect). • Year-to-date sales up 14.8%. • Gross Margins: Improved by 100 basis points. • Net Profit: INR 788 million (up from INR 276 million last year).
Management Insights • CFO's Remarks: • Optimism about margin sustainability. • Focus on medium-voltage products. • Government Schemes: Potential impact on capital expenditure and order inflows. • Renewable Energy Focus: Opportunities in grid digitization and energy evacuation.
Project and Equipment Contributions • Major Projects: Supply of power transformers and medium voltage equipment. • Green Hydrogen: Focus on energy management equipment, not electrolysers. • E-Mobility: Supply of substations and grid management software.
Revenue and Cost Management • Revenue Breakdown: • 50% from equipment sales • 30% from services (installation) • 20% from recurring services • Employee Costs: 15% of total revenue; business model complexity noted. • Order Inflow Growth: 14% attributed to product mix.
Future Plans and Localization • Localization Intentions: Progressive localization of components aimed for 100% over time. • Debt Management: Focus on reducing debt as profitability improves. • Current Order Book: Stands at INR 817 crores.
Conclusion • The call highlighted Schneider Electric's strategic focus on growth opportunities in renewable energy and infrastructure, alongside a positive financial outlook despite some challenges in sales performance.