Genus Power Infrastructures Limited

Darshil Pandya

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Kailash Agarwal

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Kailash Agarwal

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Jitendra Agarwal

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Akash Mehta

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Akash Mehta

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Akash Mehta

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Jitendra Agarwal

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Kailash Agarwal

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Kailash Agarwal

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It's very difficult to give the range, because as I told you it's again a new business where we are putting the meters and we are getting the OGLs and the SATs to be done and almost there are 25 projects we are working on.

— Kailash Agarwal

So some projects are fast, some are slow - so it's very difficult to give the exact dates.

— Kailash Agarwal

So, in terms of component availability, we don't see any major challenge.

— Jitendra Agarwal

In the past also we have maintained that adding capacity for Genus is not very difficult because we do complete backward and forward integration and the manufacturing of meters is such that you can ramp up your capability and capacity in 3 to 6 months.

— Jitendra Agarwal

So, this tariff has no major concern to the company.

— Jitendra Agarwal

And what is the biggest challenge since most participants are trying to understand, you have a massive order book and there are reasons for slow, anything new and huge order takes longer time, I understand.

— Rajesh Vora

Q

Good evening, everybody. As I am traveling, I would request to have the question answers. We can start with the question answers because I don't have the details or the numbers, the opening remarks with me. So, sorry for that. And please, we can go for the question answers, please.

Management

Q

Yes, sir, congratulations on this great set of numbers, sir. Sir, my first question would be on the EBITDA margin side, since this has been one of the best margins that we have done in the company's history. What led to this margin expansion, and what kind of margins do we expect going forward from this?

Kailash Agarwal

Basically, we have given guidance of 15%-16% EBITDA always, 16% EBITDA always, and you have to stick on that. There might be some differences in the margin from quarter to quarter, but we should not see that. It's always we have to see the average margins on the yearly basis. That is important. So, we are again on the same guidance that we will be doing a 15%-16% EBITDA and that is for sure. I get it. But sir, what led to this margin expansion for this quarter? Sometimes it happens. It is the quality of meters, the number of meters. There are many things that is not properly explainable. Basic

Q

Yeah, hello sir. Thanks for the opportunity. So, my question is on the other expenses which have gone up substantially this quarter. So, anything particular, any one off due to which the expenses have gone up. Other expenses I am talking about?

Kailash Agarwal

Other expenses you will see in consolidated, that has gone up because as per the accounting policy, I don't know that is because of the auditors only. When they say that MTM or mark to mark, it's all the notional. One thing you have to understand that it is a notional thing. Whenever there is a profit, they take it in other income. And whenever there is a loss in MTM, they take it in other expenses. So, that is being taken in as other expenses because of the MTM of the Genus Paper, the shares hold by Genus Power because of that, that has been increased. So, otherwise there is no significant in

Q

Hi, sir. So, my first question is in terms of the number of meters that have been manufactured during the quarter. I mean if you could just help out with that number first?

Jitendra Agarwal

Number of meters manufactured. Yes, made during the quarter. In the last quarter, So, we are supplied. Because our target was about a million, right, a month? So, where are we in terms of that? So, last quarter, absolute exact number I don't have in my hand. But we have produced closer to 3 million meters. Okay, so it was 2 million in the previous quarter, right? I mean, and then it has increased to 3 million. Is that correct? Yes. Okay, so we are on track of 1 million. But it includes all smart meters and all. It's a complete product mix. Okay, but if I were to make a like to like comparison,

Q

Congratulations for the great set of numbers. So, just wanted to gain an understanding on the net working capital days. Like you have previously mentioned, with the execution of the AMISP orders that we have taken up, net working capital days will see an incline in the initial period. Going ahead, it will see a dip. So, how has the net working capital days played out for us at present?

Kailash Agarwal

So, right now it's the initial stage where we are picking up the different projects. There are so many projects and every single project has, we are just picking up on that. So, right now there is no improvement in the working capital cycle, rather it is a little more than what we expected. But coming forward or going forward, it will be surely improved once the SAT (site acceptance test) or OGL (operational go live) of the different projects will start getting up. So, initially for the next six months, you will see that there is no improvement in the working capital cycle. Any days or any ran

Q

Thank you. Most of my questions have been answered. Just one question.

Jitendra Agarwal

Your voice is not clear, Mr. Solanki. Is it better?

Q

I just wanted to ask in the last conference call, we had been informed that three projects in Assam and one in Chhattisgarh were expected to go live in say a couple of months. So, just wanted to check with status if those projects have been got the go live status?

Jitendra Agarwal

So, all the four projects in Assam have go live. So, they are all on the operational go live. And in terms of Chhattisgarh, there are two projects running. One should get go live in next week and the other by the end of next week. So, I am expecting both Chhattisgarh projects also go live in next 7 to 10 days, maximum. All the formalities and everything has been done. Understood. And sir my next question is more on the water meter side. So, did we get any order export orders for the water meters this quarter? So, currently our water meter business is we are developing the products. A lot of ce

Q

Great set of numbers. Thank you for giving me the opportunity. My first question, I just wanted to ask how will you be getting payments from the discoms through the JV? Will there be any delays with the monthly payments the JV is supposed to get or is it like fixed? Will it come every single month without fail?

Jitendra Agarwal

There are so many technical processes which you have to complete, like site acceptance test (SAT), operational go live (OGL). And then only it comes on the OpEx side. Once the project becomes OpEx, then it happens every month automatically. So, that has been the DDF (Direct Debit Facility) signed with all the utilities. So, they are, all the projects are currently in the initial stages. Yes, the initial stages have taken some more time than what everybody was expecting. That is everywhere across the country and for all the AMISPs - it is not something unique for Genus. So, once it is operation

Q

Yes, thank you for the opportunity, sir. So, my question is on the working capital and overall capital requirement for the business. So, when we are saying that we will be executing about Rs. 3,500 odd crores of revenue, so what are we anticipating on the working capital front? And also, I would like to know the fund infusion that a Genus entity would be required to do in the Platform this year and going forward. So, how are we managing that?

Kailash Agarwal

So, basically as I told you that working capital will surely be improving and we don't see any more debt increase to the company. And regarding the investments in the JV, basically the total investment that Genus has to do is almost $200 million and that will be in 3 to 4 years. Next year, whatever there will be internal accruals that will be sufficient for the investment in the JV. We don't need any debt or anything to invest for the JV. Okay and sir what would be our gross debt and net debt as of December? So, gross debt is right now is around Rs. 1,200 crores and net debt will be around Rs.

Q

Hi sir, congratulations on a good set of numbers. Just wanted to understand that now that we can see traction coming into sales, I hope that this continues, the growth continues for some time. But I had one question on the opportunity because what has happened is that if I look at the data, take for example, Maharashtra, the number of meters which have been approved and number of meters which have been installed, there is a huge difference. And then they have not even installed 10% of the meters. And there are many other states where a similar thing we can see. So, what is the reason for that,

Jitendra Agarwal

If you will see, almost every state is picking up, now. This is a big consumer subject - that you have to install meters to each and every consumer. So, it is not that simple. And it is a change of mindset from utility to the consumer for everyone. And you will see numbers are going up for not only for Genus or for every AMISP. So, quarter-on-quarter, you will see that improvement across the country. Being a new concept, it takes some time for the utilities to seep in, for the local administration to seep in, for the local consumers to seep in, that from tomorrow onwards, suddenly from post-pa

Q

Thank you sir for this opportunity and congrats for the great set of numbers. So, for Q3, we have delivered great numbers, but if we look for the overall FY24 numbers, so Q4 we require a steep growth in the topline. So, will it be possible to achieve that or some of it will spill to next calendar year?

Jitendra Agarwal

So, we are maintaining the same guidance what we gave earlier and we are confident of achieving the numbers what we have already given in the guidance. Okay. And next question is this order book, means you said that couple of quarters we may not see much of a tendering activity. But post that... Your voice is not very clear. Yes, what I was asking is see couple of in the next couple of quarters we may not see much of a tendering activity as you said. So, post that, do we see the order book to pick up or this is a peak for us now? So, as I said, I don't see any major tenders happening in next q

Q

Hello, sir, thank you for the opportunity and congratulations on the numbers.

Jitendra Agarwal

There's some phone is ringing on the background. I don't know why people are doing multiple things at a time. Sir, there's a problem with the line, I think. I will get back in the queue.

Q

Thank you for giving me this opportunity and congratulations on a good set of numbers. So, I have a couple of questions on the policy part of smart metering. So, just like building upon one of the previous participants' question on prepaid versus postpaid. So, recently there was an article in the news saying that how MSEDCL is sort of planning to scrap the prepaid billing for consumers and propose time of the day billing. And like how this would sort of benefit the consumer in terms of like their consumption. And basically they will be able to save some 80 paisa per unit. And this policy is li

Jitendra Agarwal

Can you repeat what you are saying that MSEDCL is planning to come with a policy where they will give discount on the prepaid? Yes sir. What you are saying is that MSEDCL is planning to give discounts on tariffs for the prepaid consumers. Is this what you are saying? No sir, basically they were saying, the article that I was reading and it was basically mentioning that they were trying to scrap the prepaid billing and introduce the time of the day billing. Through which like consumers would, the tariffs would be based on consumption in different time slots throughout the day? So, these are two

Q

Congratulations about this great set of numbers. So, my first question is since you said that you will be able to achieve this year's guidance of Rs. 2,500 crores which requires …, just wanted to understand will the entire growth will come from the new Assam facility only? Is this 50% of the incremental revenue to achieve the guidance of Rs. 2,500 crores?

Jitendra Agarwal

New Assam facility is not giving major. So, it is not from new Assam facility, it is from the overall growth of the business. Got it. So, have we added additional capacities to the existing facilities as well to achieve this guidance of Rs. 2,500 crore and thereafter for the next year, 30% additional topline growth? So, we are continuously adding. In the past also we have maintained that adding capacity for Genus is not very difficult because we do complete backward and forward integration and the manufacturing of meters is such that you can ramp up your capability and capacity in 3 to 6 month

Q

Sorry, I just got disconnected. Can you repeat the question?

Sohan Joshi

Yes, did the MTM loss which has hit our P&L this quarter, do you expect the loss to be further widened in the next quarter, because ultimately it drags the EPS? It's absolutely a notional loss only, notional profit or notional loss. We have to understand that it is dependent all on the market, whether it is going up, it is going down, share price going up, share price going down. So, nothing to do with the actual profit or loss. So, this is MTM absolutely, it may go further, more losses, it may go to the profits and all, but that is not affecting in any ways to the company, because it's absolu

Q

So, I had two questions, basically. One is, because of the Trump tariffs, since most of our products are imported, so will that impact our bottom-line or topline in the coming time? And second of all, we have seen that the government orders have slowed down in many segments in many industries. Since majority of our income comes from the smart meters itself, which is dependent on government. So, is this ordering delay from the government going to impact us in coming year or in the next 6 to 9 months?

Jitendra Agarwal

So, this tariff has no major concern to the company. As I have spoken earlier also, though we import electronic components, but it is not only from, it is not from US, it is from different parts of the world. And that is not a very major impact on the raw material cost. First thing. Second thing, what is the second question? Can you repeat? Yes, the second question was regarding that we have major orders for smart meters. Yes, I got your point. So, as I said earlier, also, ordering of government has slowed down - has nothing to do with the RDSS segment. It is primarily some of the utilities ha

Q

Good evening, gentlemen. Congrats on good set of numbers. For the guidance of Rs. 2,500 crores for this financial year, what is the number of meters we are achieving that?

Jitendra Agarwal

So, number of meters always, these numbers have a lot of dependence on the variety of meters. So, numbers will be around 3-3.5 million. I don't want to specify on the numbers because then it becomes very confusing. So, that is why I want to specify on the overall guidance. So, it is not only dependent on the number of meters. So, there is a big mix of meters that makes a big difference. Sure. So, you are saying 3-3.5 million meters in that range? Yes. And could you give that idea? Are you giving any guidance for next financial year? So, we spoke during the conference only. What we have told ea

Q

So, I had two questions for you. So, is Genus shifting towards software-driven models? So, what share of revenue can be expected from in the coming years from the software services?

Jitendra Agarwal

Software-driven model means what, can you explain? As you mentioned in the annual report of Genus in 2024, so you are focusing more on software solutions now. So, could you expect higher revenue from that and less from the manufacturing? So, currently, it is a backward integration for us. All the software services which we were buying from outside, like head end system, meter data management, MDM software, so it is not going to impact the topline. Your topline is going to be same. So, it is like, it is more of a backward integration currently, but moving forward, we will make software as a maj

Q

Sorry, my question has been answered. It was regarding the Assam facility. Thank you.

Management

Q

Hello. Sir, just wanted to confirm as far as I remember the last call we did, we guided for a 50% topline in FY26 and right now we are saying about 30%-35%. So, are we reducing the guidance or just wanted to understand from your side?

Jitendra Agarwal

We are not reducing the guidance as such. I would say Kailash sir if you want to answer this. No, it's nothing like that, that we reducing the guidelines. When we say 40%, it's almost we are on the track. So, nothing on that. We are absolutely on the track. Guidance for this year is also the same, and for the next year also is the same. Got it. Alright. Thank you so much, and all the best.