Q3 24/25

Feb 14, 2025

Quarterly report

Summary

FY25 revenue guidance of ₹2,500 crore and annual EBITDA margin guidance of 15%-16% were reaffirmed. Meter production increased sequentially, while project go-lives and working-capital improvement remain gradual.

Ladies and gentlemen, good day and welcome to Q3 FY 2025 earnings conference call of Genus Power Infrastructures Limited, hosted by Kaviraj Securities Private Limited. As a reminder, all participant lines will be in a listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. Please note, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Abhijeet Mukesh Purohit from Kaviraj Securities. Thank you, and over to you, sir. Thank you. Good evening, everyone. Kaviraj Securities Private Limited welcomes you all for Q3 and nine-month FY 2025 earnings conference call of Genus Power Infrastructures Limited. Today on the call we have with us Mr. Kailash Agarwal, Vice Chairman, and Mr. Jitendra Kumar Agarwal, Joint Managing Director. Now, without any further delay, I would like to hand over the call to Mr. Kailash Agarwal for his opening comments, post which we will open the floor for Q&A session. Thank you, and over to you, Kailash, sir. Good evening, everybody. As I am traveling, so I would request to have the question and answer. We can start with the question and answer because I do not have the details or the numbers, the opening remarks with me. So sorry for that. Please, we can go for the question and answers, please. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then one on the touch-tone telephone. If you wish to remove yourself from question queue, you may press star then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is on the line now. Darshil Pandya from Finterest Capital. Please go ahead. Hello, am I audible? Yes, sir. Yeah. Hi. Yes, we are. Yes, sir. Congratulations on this great set of numbers, 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? Basically, we have given a guidance of 16%, 16% EBITDA, always 16% EBITDA. Correct. Always. We 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 a 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, or there are many things that is not properly explained. Got it. Basically, it is always important to understand the average margin. Got it. Sir, can you please elaborate something on this strategic investment business segment? What is that about? Sorry? Strategic. Strategic investment business that we have separately shown in our P&L. That is already we are working on that, and that is already filed in NCLT. That is a different investment in non-listed companies and some group companies and all that is going out. Okay. That is already being filed with the demerger of the company, and it is taking some time, and that is the only thing. It is an old, very old process going on. Okay. Lastly, sir, I would like to have some update regarding the ED search that happened in the month of December, that the company notified on the exchange. What is the update on that? Have they find any material? We have already given an update from that the company that has been searched, and we have informed that to the exchanges. After that, we haven't received anything from the department or from the court or anything. Once we get that, we will inform for sure. Got it. That actually makes sense, sir. Thank you so much, sir. I will get back in with you. Thank you so much. Thank you. Thank you. The next question is from the line of Mahesh Patil from ICICI Securities. Please go ahead. Hello, sir. Thanks for the opportunity. Sir, my question is on the other expenses which have gone up substantially this quarter. Anything particular, any one of, due to which the expenses have gone up, other expenses I am talking about? Other expenses you will see in consolidated that is gone up because as per the accounting policy, I do not know, that is because of the auditors only. When they say that MTM or mark-to-market, it is all 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, sorry, other income. And when there is a loss, they take it in other expenses. That is being taken in as other expenses because of the MTM of Genus Paper, the shares held by Genus Power. Because of that has been increased. Otherwise, there is no significant increase in other expenses. Okay. My second question is on the ordering. On the ordering. Can you repeat? On the ordering, sir. Hello? Can you repeat? I could not take you. Could not understand your question. Sir, my second question is on the ordering, smart meter ordering. Any further orders that have been, I guess we haven't received anything in Q3, right? Any further orders that are in pipeline, any tenders that are there? There are no major tenders in the pipeline. Yes, there are always few tenders going on, but there are no major tenders in the pipeline. On the ordering side, Genus is fairly good. If you ask me personally, I would rather be more happy that nothing much happens in the next six to nine months, which is definitely not in our hands. Otherwise, yes, there's no major tenders happening in next quarter, at least. Okay. Sir, another question that I had on the, whatever meters that we have installed that we have executed the orders. There is this payment milestone, right? I think four or five months down the line or 35% of meters, something like that. Post which the monthly charges for the meters start. Correct? There is no payment milestone as such. Whenever you install a meter, then you have to do the operation go live. It works. Correct in this fashion. I do not know what milestone you are talking about. I do not see there is any payment milestone. Every tender is different, but there is no payment milestone as such. Okay. Because, from what I understood was, after four or five months, there was some milestone, like 30% of meters or something like that installed. It might vary from tender to tender, obviously. Post which, after the testing of those meters, then the monthly service charges, It is a different type of meter that for first six months we have to install some percentage of DT meters, some percentage of feeder meters. Your question is not very clear. There is no as such payment milestone. Okay. Sure. Yeah. Thank you. Thank you. Thank you. The next question is from the line of Akash Mehta from Canara HSBC Life. Please go ahead. Hi sir. 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. Number of meters manufactured? Yeah, made during the quarter. In the last quarter. Or supplied. I mean, because our target was about 1 million, right? I mean, a month. So, I mean, where are we in terms of that? Last quarter, the absolute exact number I don't have in mind, but we have produced closer to 3 million meters. Okay. It was 2 million in the previous quarter, right? I mean, and then it has increased to 3 million. Is that Yes. Correct. Okay, we are on track of 1 million It includes all smart meters and all. It's a complete product. Okay. But if I were to make a like-to-like comparison, it's 3 million versus 2 million in the second quarter. It was not exactly 2 million, it is not exactly 3 million, but, yes, quarter to quarter, you can compare like that. Understood. Second is on the Sir, if you could, I mean, any specific guidance in terms of fiscal 2026, I mean, in terms of Q4 fiscal 2025, or fiscal 2025 revenue guidance of INR 2,500 crore, you are maintaining that? We are 100% maintaining that. Any guidance for 2026 on revenue and margins? 2026. Kailash, if you want to speak on that, because generally Can you please come again? No, I mean on- He is asking for a guidance for 2026. 2026, we have already given a guidance last quarter, that we will be doing another 30%, 40% of. This year, we have given a guidance of 2,500, and there will be surely an expense increase of 30% to 40% for next year. Margin will be broadly same, that 15%-16% range. Yeah, margins are already we have given the same guidance, yeah. Understood. In terms of new tenders or new orders, the previous participant also questioned. I mean, any specific reason why there has not been any pickup over the past few months? If you will see historically also, when country moved from electromechanical to electronic meters, there is no pattern as such, but it is becoming a pattern, even historically. South was little slower in moving to electronic meters. Same thing I am seeing in smart meters also, that South is moving little slow. If you ask me, frankly, it is good for the industry. You can't eat everything so fast. It is good for the industry also. Industry is getting matured. It is good for us that they are taking their time, because already the order book is very healthy. Understood. That's it from my side. Thank you. Thank you. Thank you. The next question is from the line of Chinmay Kabra from Emkay Global Financial Services. Please go ahead. Yes, Mr. Chinmay, go with the question, please. Hello, am I audible? Hello. Sir, you're audible now. Yeah. Yeah. You are audible. Yeah, you are. Congratulations for the great set of numbers. Just wanted to gain an understanding on the net working capital base. Like we have previously mentioned, with the execution of the AMISP order that you have taken up, net working capital base will see an incline in the initial period. Going ahead, it will see a dip. How has the net working capital days played out for us at present? 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. 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 or the O&M of the different projects will start getting up. Initially for next six months you will see that there is no improvement in the working capital cycle. Any days or any range that we can give, sir, at which we are operating right now? 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 O&Ms and SATs to be done. Almost there are 35 projects we are working on. Some projects are fast, some are slow. It's very difficult to give the exact dates, but surely there will be improvement in the working capital cycle, but it will take some time. Understood, sir. Since you had mentioned in your press release that the Assam Brownfield CapEx capacity expansion has taken place, I just wanted to understand how is the ramp-up in terms of execution going on over there, sir. Have you started production in the new capacity? I am sorry. Yes, we have already started production at the new capacity. Understood, sir. If maybe we could get a capacity utilization level on a holistic Genus level, maybe. Yeah, holistic Genus level. We are also supplying to all the utilities in the country, but every utility is only buying smart meters. It is overall supporting our complete business. Understood, sir. So just had another question. Since we did register a good 19% margins this quarter, and if I just build in an approximate 15%-16% margins for the entire year of FY 2025. Based on the balancing figures or the estimates, my margins for Q4 come to around 12%-12.5% or so. Should we consider that going ahead? Or we can obviously see an escalation given our trajectory in the last three quarters. If we can see an improvement in that as well. Can you come again with your question, please? I'm sorry. Yes, sir. Sure. For the entire year, FY 2025, we have been going ahead with the guidance of 15%-16%. Given that we have beaten this estimate in nine-month FY 2025, can we see the similar pattern play out in Q4 in the sense that we could obviously come back in the 15%-16% range registered in Q4 FY 2025, sir? Every quarter there will be a difference. It won't be similar every quarter. There are so many things that vary from quarter to quarter. Sometimes it will be more, sometimes it will be less, but average you will see that will be 15%-16%. Understood, sir. Yeah, those are my questions. Thank you. Thank you. Thank you. The next question is on the line of Darsh Solanki from Axis Securities. Please go ahead. Yeah, sir. Thank you. Most of my questions have been answered. I have just two questions. First, in the last Your voice is not clear properly. Your voice is not clear. Is it better? Hello? Yeah, it's better. Yeah. 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. I just wanted to check the status if those projects have got the go-live status. All the four projects in Assam have go live. They are all on operational go live. In terms of Chhattisgarh, there are 2 projects running. One should get go live in next week and the other by the end of next week. I am expecting both Chhattisgarh projects also go live in next 7-10 days maximum. Understood, sir. All the formalities and everything has been done. Understood. Thank you. My next question is more on the water meter side. Did we get any export orders for the water meters this quarter? Nothing currently. Our water meter businesses, we are developing the products. A lot of certifications are happening. Certifications takes, especially for the international market, they take 12 to 18 months in some cases, 2 years. It is the processes. We are in the right direction. We will start seeing some numbers from next financial year onwards. But yes, it will take 2 to 3 years for this business to become significant. Understood. We are in the right direction, and we are absolutely moving forward with this. Understood. Just this last thing, just more of a clarification nature. What I understood from the previous questions is that we don't expect much of a tendering input for at least the next couple of quarters. Is that understanding correct? Yes, that understanding correct. There is no major tenders happening in next quarter at least. Understood. Okay, sir. That is it from my side. Thank you. Thank you. The next question is from the line of Devanand Mohan from Avendus Capital. Please go ahead. Yeah, hello. Am I audible? Yes, please. My 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 fixed? Will it come every single month without fail? There are so many technical processes which you have to complete, like site acceptance test, operational go live, and then only it comes on the OPEX side. Once the project becomes OPEX, then it happens every month automatically. That has been the DDF signed with all the utilities. All the projects are currently in the initial stages. Yes, the initial stages have taken some more time than what everybody was expecting, but that is everywhere across the country and for all the AMISPs. It is not something unique for Genus. Once it is operational go live, then DDF will come into function, and once DDF is into function, everything will happen automatically. Okay. Just on average, what kind of tariff are you looking at from the discoms? What kind of collections per month, per smart meter, would you say you are getting? Collections? No, it's a fixed price what we have to charge there. Yeah. I could not understand. But their collection, we are not tracking that. But what we have to take from them is a fixed charge. Okay. How much would the smart meter go for then? The price of the smart meter. It is different to project to project. It's very difficult to say. Every project has a different price. Every project has a different price. It has a huge variation. No, on average. On average for a consumer meter, for a DT meter, it is different for different state electricity boards. Okay. Fine. Thank you. Just one more question. There are about 12 crore smart meters that are yet to be awarded, right, for the RDSS? What kind of market share are you looking to achieve for the next wave of orders that are coming? Are you still looking to hover around 20%, or do you think there is any chance to go up or something like that? Currently, our order book is very healthy. According to the tenders coming, we will be making our strategy. Genus will always be a very significant player in the market. That I can assure you, Devanand. Market share will broadly stay stable. As I said, Genus will be a significant player in the market. Okay. Thank you. That's all. Thank you. Thank you. A reminder to all participants to mute their star and one to ask questions. The next question is from the line of Chandresh Malpani from Niveshaay Investment Advisors. Please go ahead. Hello. Yes, sir. Thank you for the opportunity, sir. My question is on the working capital and overall capital requirement for the business. When we are saying that we will be executing about 3,500 odd crores of revenue, what are we anticipating on the working capital front? Also, I would like to know the fund infusion that Genus entity would be required to do in the platform this year and going forward. How are we managing that? Basically, as I told you that working capital will surely be improving and we don't see any more debt increase to the company. 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. Sir, what would be your gross debt and net debt as at December? Gross debt right now is around INR 1,100 crores, and net debt will be around INR 300-400 crores. Okay. Secondly, on the imports side, what we understand is majority of our electronic components are imported. Any challenges Genus as an entity or the industry is seeing in terms of the execution that is lined up? Secondly, on the same lines, any impact on the forex side, and how are we hedged on that side? In terms of component availability, we don't see any major challenge. Execution is going very smooth. In terms of forex, we have a hedging policy, and we follow that. Okay. No major impact we are seeing, right? Yes. Okay, sir. Thank you. Thank you. The next question is from the line of Milind Karmarkar from Dalal & Broacha. Please go ahead. 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 growth continues for some time. 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. They have not even installed 10% of the meters. There are many other states where a similar thing we can see. What is the reason for that, I wanted to know. As you rightly said, that currently the capacity is not very large, so it is better that it happens over a period. My question is more on, since your business is B2G, that is, your main customer is government, do you see any difficulties or any type of hindrances in the final completion? Orders you have got, but execution of orders or the final go-ahead by the government. If you will see, almost every state is picking up now. This is a big consumer subject, that we have to install meters to each and every consumer. It is not that simple. It is a change of mindset from utility to the consumer for everyone. You will see the numbers are going up not only for Genus, for every AMISP. 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 postpaid my meter become prepaid. There is a very good program being run by all the AMISPs under the guidance of government of India, under the guidance of local utilities, where the consumers are also welcoming it. You will see these numbers going up every quarter, every month, there is an improvement. Yes, this is a major change. Such kind of change will take some time, but yes, it is picking up. You will see your own state, Maharashtra. Yeah. Next quarter, you will be surprised what will happen in Maharashtra from February, March, April onwards. Oh, okay. Interesting. Okay. One more thing which I wanted to know, like you just now said, that you are moving from postpaid to prepaid. But is it so that all the meters which will be installed will be prepaid, or it is at the option of the utility? No. It will be prepaid. Over the period of time, it will become prepaid for everyone, as per the guidelines currently. These meters are smart enough to be used as prepaid and postpaid both. At the end of the day, it is the choice of the utility. But as per the current norms, every meter has to become prepaid. Okay. As far as the growth is concerned, we have already seen a good growth in this quarter, so traction seems to be taking. But if I look at the order book which you have, even this growth seems to be small. Do you think that the growth can accelerate going forward? Or you think that, say 25%, 30% growth, because it looks like that what the government wanted to finish in probably three years is likely to take six, seven years. So your growth maybe at, say 30% year on year can continue for a long period of time. Am I right in that? Or you see a significant You are right in that. This is what we have been maintaining because it was a very ambitious project to be completed in three years. Correct. But yes, practically, it will take its own time, which is good for the industry also. Okay. Thank you very much, and all the best. Thank you. Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Aditya Welekar from Axis Securities. Please go ahead. Yeah, thank you, sir, for this opportunity and congrats for the great set of numbers. For Q4, Q3 we have delivered great numbers, but if we look for the overall 2024 numbers. Q4 will require a steep growth in the top line. Will it be possible to achieve that, or some of it will spill to next calendar year? We are maintaining the same guidance, what we gave earlier. We are confident of achieving the numbers what we have already given in the guidance. Okay. And the next one, sir. Is this order book, means you said that couple of quarters we may not see much of a anchoring activity. But post that Your voice is not very clear. Yeah. What I was asking you, 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? As I said, I don't see any major tenders happening in the next quarter. And thereafter, there are many states who have still not gone for smart meters. Eventually, everybody will have to go for smart meters. So you will see tenders coming. So next financial year, I see states from down south also becoming active in the smart metering. So I don't see major tenders happening for next quarter, at least. Okay. This RDSS scheme, this will continue, right? Whatever the government support is there through this scheme, this will be continuing to involve all the states and the focus of the government. Any macro color you can give? Macro, Government of India is very clear, and it is a necessity for the country to go for smart meters. Because the way the energy transition is happening across the globe, not only in India, across the globe, a smart grid is a must. For a smart grid, a smart meter is a must. I do not see any chance of going back from smart meters to your conventional electronic meters. It has to happen. It is just a matter of time. Perfect, sir. Thank you. Thanks a lot, and all the best. Thank you. Thank you. The next question is from the line of Rohan Vora from Angnesian Capital. Please go ahead. Hello. Sir, thank you for the opportunity, and congratulations on the numbers. Sir, my question was on insourcing- Sir, there is some background noise from your side. Is it clear now? I can hear. There's some phone is ringing on the background. I don't know why people are not They're doing multiple things at a time. Sir, there's a problem with the line, I think. I'll get back in the queue. Thank you. The next question is from the line of Pranjal Mukherjee from GrowthSphere Ventures. Please go ahead. Hi sir, am I audible? Yes, please. Thank you for giving me this opportunity, and congratulations on the good set of numbers, sir. I have a couple of questions on the policy part of smart metering. Just like building upon one of the previous participant's question on prepaid versus postpaid. Recently there was an article in the news saying that how MSEDCL is planning to scrap the prepaid billing for consumers and propose time of the day billing. And how this would benefit the consumer in terms of their consumption, and basically they'll be able to save some 80 paisa per unit. And this policy is like, they're planning to start it from April 1. I just wanted to understand, sir, what do you think of this policy? What kind of material impact can it have on us? And generally, how would a consumer react to it? Can you repeat? You are saying that MSEDCL is planning to come with a policy where they will give discount on the prepaid. Hello? Yes, sir. What you are saying is, MSEDCL is planning to give discount on tariff for the prepaid consumers. This is what you are saying? No, sir. They were saying, the article that I was reading, and it was basically mentioning that they are planning to scrap the prepaid billing and propose time of the day billing, through which the tariff would be based on consumption in different time slots throughout the day. These are two separate things. Prepaid, whether MSEDCL wants to continue it or scrap it is definitely the choice of MSEDCL. But to the best of my understanding, currently all the smart meter tenders are on the prepaid book. If the meters are smart enough to be prepaid or postpaid, I do not know what that article says. I have not read that. MSEDCL can easily shuffle between the two. Time of day use is one of the biggest features of smart meters. Not only MSEDCL, almost every state electricity board in the country. If you will go, if you will read the article almost 18 months back, central government has also given a guidance that how time of day use has to be implemented in the country over the period of time. You will see once the smart meters usage will happen competently across the country, time of day use has to come, which is a very important feature of smart meters for the consumer. Assam government has already declared that we will go for time of day use. MSEDCL is already talking about it, because tariff change and tariff structure is a very state subject, central subject, and regulatory commissions also get involved, so it takes its own time. But eventually it has to happen. Okay. And sir, given in the last couple of months, we've also seen the meters installation, the pace of it has increased. So a couple of months back, we were at 1.3 crores, now we've crossed 2 crores meter installed. So I just wanted to understand, again, from a policy point of view, I read that there's a new policy called the direct debit facility, through which basically ensures 5 days of the monthly estimated AMISP service charge, and how this will sort of boost faster rollout of smart meters in FY 2026. So just wanted to understand this policy from you a little bit better and the implications of it. I don't know which article you are talking about and what does this 5X mean. For AMISP, it's a fixed charge for 10 years. This is what we are going to charge the utility per meter per month, and direct debit facility has always been a part of that tender. This whole RDSS program is based on the direct debit facility. So there is no change in the policy. There's nothing which is new. All right, sir. And one final question, a little bit on the competitive scenario, sir. Any comments on that? Any business which will go up will always have a competition, but at the same time, if you do your work correctly, you will be always ahead of the competition. This is what we are trying to do, and this is what we have been doing. Competition will get more and more serious, but Genus is well-placed to take care of everything. Yeah, sir. The point of asking this question was, I just wanted to understand, are we still in that nascent stage of competition where new players are entering? Or maybe a year, 2 years down the line, you might see some consolidation also happening in the industry. Currently, I am not seeing a lot of new AMISPs. Already there is a very large number of AMISPs already in the market. As such, I am not seeing any significant new player coming in the market now. Okay. Thank you, sir. Thank you for giving me this opportunity. All the best for the future as well, sir. Thank you. Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Sohan Joshi from ASC Consultants. Please go ahead. Am I audible? Yes, sir. Congratulations about this great set of numbers. My first question is, since you said that you will be able to achieve this year's guidance of INR 2,500 crores, which requires quarter top-line growth. I want to understand, will the entire growth come from the new Assam facility only? Just a 60% annual incremental revenue to achieve the guidance of INR 2,500 crores. New Assam facility is not giving major. It is not from new Assam facility, it is from the overall growth of the business. Yeah. We have got it. But then, have we added additional capacities to the existing facilities as well to achieve this guidance of INR 2,500 crores and thereafter for the next year, 30% additional top-line growth? 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. The manufacturing of meters is such that you can ramp up your capability and capacity in 3 to 6 months. A lot of long-term time-taking things has been taken care of in the past. Genus has the capability to ramp up its production. With the addition of a new facility in Guwahati, it has further added to our strength. Capacity will not be a problem. It was never a problem in the past, and it won't be a problem in the future. It is more execution. Generally, the last quarter of the year is the best time of the sales, so we are maintaining our guidance, and we are confident that we will achieve what we have committed as yet. Okay, so there won't be any constraint with regard to the tightening working capital condition as well, right? I mean, that won't be a constraint for achieving a top-line growth, right? Even for this quarter. That won't be a constraint. We are confident about that. Okay. My next question with regard to the raw material cost. Since most of our contracts are fixed price contracts, how are we seeing the raw, I mean, we won't be able to pass the raw material cost escalation. So how are we seeing the raw material cost in the upcoming quarters, in the upcoming years? Is it rising, or is it stable? If you see the past history of Genus, the maximum raw material increase was during the COVID period. Still, we were not impacted very badly. Though it makes a difference, but not very badly because we are a high technology product. We are not a very high BOM product. When you have a very high technology product and not a very high BOM, there is a difference that comes due to raw material, but not major. If you see the history of Genus, you will understand it better. Okay, one last question. This is regard to this MTM loss, which has hit the P&L this quarter. Do you expect that to be hit even in the upcoming quarter? Because that ultimately has an impact on the EPS growth also. Do you expect that to be hit even in next quarter as well, in the upcoming full quarter? Hello? Hello? Kailash sir, you have to Hello? Am I audible? Kailash sir line got dropped dead. Just connecting. Okay. We'll just wait for Kailash sir to respond. Kailash sir has disconnected, sir. Yeah. Sorry. I just got disconnected. Can I get Yeah, sure. 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 our EPS. Basically, it is absolutely a notional loss only. Notional profit or notional loss. You 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. Nothing to do with the actual profit or loss. 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 way to the company because it is absolutely a not to lose on this. Okay, thank you. All the best for upcoming quarters. Thank you. The next question is from the line of Smita Mohata from Kredent InfoEdge. Please go ahead. Hello. Hi. Hello. Yeah. Yeah. I had two questions basically. One is, because of the Trump tariffs, since most of our products are imported, will that impact our bottom line or top line in the coming time? 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, is this ordering delay from the government going to impact us in coming year or in next 6-9 months? This tariff has no major concern to the company. As I've spoken earlier also, though we import electronic components, it is not from U.S., it is from different parts of the world, and that is not a very major impact on the raw material cost. First thing. Secondly, what is the second question? Can you repeat? Yeah, the second question was regarding that we have major orders from the government for smart meters. I got your point. As I said earlier also, ordering of government has slowed down. It has nothing to do with the AMISP segment. It is primarily some of the utilities have taken more time in getting onto AMISP bandwagon and it start ordering these smart meters. If you ask me frankly, it is good for the industry. Okay. Thank you, sir. Thank you. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your question to two questions per participants. Do you have a follow-up question? We request you to rejoin the queue. The next question is from the line of Rajesh Vora from Janmey Ventures. Please go ahead. Good evening, gentlemen. Congrats on good set of numbers. For the guidance of INR 2,500 crore for this financial year, what is the number of meters we are assuming that we will sell? Number of meters, always these numbers have a lot of dependence on the variety of meters. The numbers will be around 3.5 million. I don't want to specify on the numbers because then it becomes very confusing. That is why I want to specify on the overall guidance. It is not only dependent on the number of meters. There's a great mix of meters that makes a big difference. Sure. You are saying 3 to 3.5 million meters in that range? Yes. Okay. Could you give that idea, are you giving any guidance for next financial year? We kept, we spoke during the conference only that what we have told earlier, we'll maintain the same. That we are maintaining the 30%-35% growth in the next financial year. 35% revenue growth? Yes. 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 which always takes longer time, I understand. In your opinion, what are the biggest hurdles to improve the installation rate? Is it from the company side, what are the issues? And what is the customer side response and government side issues, if you can give some broad idea from the viewpoint. I would say it's an overall ecosystem which is picking up. These are very consumer-centric infrastructure projects. These are not greenfield infrastructure projects where you just go underground and start implementing the things. It's a complete change of ecosystem, complete change of mindset for everybody in the country. This is one project which will touch each and every human of this country. So that is why it is an ecosystem which is getting built, but things are absolutely in the right direction. You will only see numbers growing significantly quarter on quarter for the whole country. Okay. Would you say that most of the major- Mr. Rajesh, I just request you to rejoin the queue for the follow-up question, please. Okay. Thank you. Yeah. Thank you. The next question is from the line of Reed Ranawat from Aventis Capital. Please go ahead. Hello, am I audible? Hello? Yes, please. Yes, sir, you are audible. Yeah. I had two questions for you. Since Genus is shifting towards software-driven model, what share of revenue can we expect in the coming years from the software solution? Software-driven model means what? Can you explain, sir? As you mentioned in the annual report of Genus in 2024, you are focusing more on software solutions now. Would you expect higher revenue from that and lesser from the manufacturing model? 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, MDMS software. It is not going to impact your top line. Your top line is going to be same. It is more of a backward integration currently, but moving forward, it will make software as a major business for us. This is what we plan to do, but currently it is not visible on the pipelines. Okay. Another question I had, could you shed some more details on the contract payment terms? Like how does the payment is received by Genus? Like in a contract. How does the payment received by Genus? Once you look at it's a tender, process is clearly written down. That once we install the meters, we have to do the site acceptance test, then the operation go live happens, and then initial funds come from the utility when DDF comes into place. What exactly you want to understand in this, I could not understand. The timeframe of every contract is 8 to 10 years only. Yeah. Timeframe of every contract is 8 to 10 years. Okay. All right. If you could- I will request you to rejoin the queue for the follow-up questions. Okay. Yeah. Thank you. The next question is on the line of Mahesh Patil from ICICI Securities. Please go ahead. Yes, Mr. Mahesh, go with the question, please. Sorry, my question has been answered. It was regarding the Assam facility. Thank you. Okay. Thank you. Thank you. The next question is from the line of Darshan Pandya from Finterest Capital. Please go ahead. Hello. Sir, just wanted to confirm, as far as I remember, the last call we did, we guided for a 50% top line in FY 2026, and right now we are saying about 30%-35%. Are we reducing the guidance? Just wanted to understand from your side. We are not reducing the guidance as such. I would say, Kailash, are you sure how to answer this? No, no. It is nothing like that we are reducing the guidelines. When we say 40%, it is almost we are on the track. 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. All right, sir. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Faris from Avendus Capital. Please go ahead. Am I audible? Yes, sir. First of all, thanks for the opportunity and congratulations for such a good set of numbers. I have just two questions. Sir, if you could please provide the breakup of the order book as in meter installation and O&M part. Also, the second question is, if you could just give us an update on the gas meter, has company won any contract on the gas meter, and what is the company strategy around it? On the breakup of order book, I don't have it upfront with me, and I don't want to give any approximate numbers. You can reach out to SGA, we'll provide you that. From the gas meter side. Percentage is also fine. Hello? Yeah. Sir, in terms of percentage also, it is fine. We do not want the exact number. I do not want to comment anything vague, very frankly. I would not like to speak over it. On the gas meter side, it is like a conventional electronic meter business, which will have a decent growth. It will not be very large numbers, it will not be very small numbers. It will have a decent growth. It will be like a conventional electronic meter business for us. Okay, sir. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Sohan Joshi from ASC Consultants. Please go ahead. Am I audible? Yes, sir. Thank you for taking my follow-up question. One just last question. Even in the worst case scenario of the response from the ED search, it won't in any way hamper our manufacturing and maybe a constraint to achieve our target revenue of INR 2,500 crore, right? It won't be any constraint even if the worst case response come from the ED, right? Hello? Kailash, sir, you want to respond on that? Yeah. Hello, Kailash, sir. Can I come again with the question? Yeah, please. Even in the worst case response from the ED with respect to the search which has taken place, it won't hamper our manufacturing and it won't be a constraint to achieve our target of INR 2,500 crore, right? If you see that the search happened on 3rd of December. It is almost two and a half months. Nothing to do with the manufacturing, nothing to do with our business. It is a normal course. There is some inquiry, and it happens. There will be no effect on the business of the company. Okay. Thanks a lot, sir. That is it from my end. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Kailash Agarwal for closing comments. Over to you, sir. Thank you very much, dear friends, for your confidence in the company, and we assure you that absolutely company is doing great, and it will be going upwards. Do not worry about the ED. Anything that has happened two and a half months back, and nothing going on, and absolutely fine with the company. Thank you very much. Thank you, everybody. Thank you. Thank you. On behalf of Kaviraj Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.