Q1 24/25

Jul 31, 2024

Quarterly report

Summary

Q1 revenue, EBITDA and PAT rose sharply YoY, with higher gross margin. FY25 guidance remains INR 2,500 crore revenue and 15%-16% EBITDA margin; execution is expected to strengthen in H2.

Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of Genus Power Infrastructures Limited, hosted by Kaviraj Securities. As a reminder, all participants lined will be in 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 your touchtone 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 Purohit from Kaviraj Securities. Thank you, and over to you. Thank you. Good evening, everyone. Kaviraj Securities Private Limited welcomes you all for Q1 FY25 earnings conference call of Genus Power Infrastructures Limited. Today on the call, we have with us the management team comprising of Mr. Kailash Agarwal, Vice Chairman, and Mr. Jitender Agarwal, Joint Managing Director. Now, without any further delays, I would hand over the call to Mr. Kailash Agarwal for his opening remarks, post which we will open the floor for Q&A session. Thank you and over to you, sir. Thank you, Abhijeet. Good evening, ladies and gentlemen. A very warm welcome to the Q1 FY25 earning call of Genus Power. The results and press releases are uploaded on the stock exchanges and company website. I hope everybody has had a chance to look at it. Our revenue stood at INR 414 crore, representing a 59% increase compared to INR 261 crore in Q1 FY24. This growth was driven by strong execution in our smart metering segment, despite typical seasonal variance and operational delays due to general elections. We saw a significant improvement in our gross profit margins, which increased to 44.4% from 34.6% in Q1 FY24. This was primarily due to better procurement efficiencies and stable raw material prices. I would like to highlight that in previous quarters, many of our newly initiated projects experienced significant startup costs, which initially led to subdued gross profit margins. However, as these projects advanced to more mature stages in Q1 FY25, we observed a considerable improvement in our gross margin profile. Looking forward, we expect some variability in gross margins across quarters influenced by the execution timelines of the project. Our EBITDA for Q1 FY25 was INR 63 crore, up 121% compared to INR 29 crore in Q1 FY24. The EBITDA margin improved by 431 basis points to 15.3%, driven by our focus on optimizing operational efficiencies and effective cost management. This is in spite of the rise in employee and other expenses due to our ongoing efforts to expand our workforce and enhance our system in anticipation of fulfilling the substantial order book we have secured. Our PAT stood at INR 42 crore, an increase of 120% compared to INR 19 crore in Q1 FY24. This growth was supported by higher operating income and improved cost management. As on June 30, 2024, our total order book, including all SPVs and GIC platform, stands at about INR 21,458 crores net of taxes, and these concessions are for 8 to 10 years. Our robust order book positions well as sustained growth in the coming quarter. We expect full-scale execution to ramp up from Q3 FY25 onwards. We are optimistic about achieving our stated revenue target of approximately INR 2,500 crores for FY25, with an expected EBITDA margins of about 15%-16%. We are well equipped to address potential challenges related to large-scale execution of projects, as also to effectively managing costs and meeting financing requirements. We are also actively investing in expanding our workforce and enhancing our system to effectively support the execution of our significant order book. These investments are essential for preserving our competitive advantage and ensuring prompt project completion. We have also been receiving a significant number of inquiries from third-party advanced metering infrastructure service providers for smart meters. Although we have received letter of intent from them, we do not publicly announce the same on account of our company policy, which does not consider LOIs as part of active order book. In addition to our core business in smart electricity meters, we are expanding our offerings to include smart water management solutions. We recently launched smart ultrasonic water meter DN20 in Australia, leveraging advanced LoRa communication technology for enhanced remote monitoring and efficient water usage. This strategic move diversifies our offerings and addresses the global demand for intelligent water management solutions. We are exploring new opportunities in gas and water metering markets, both domestically and internationally. Overall, financial year 2025 holds great potential for us. We capitalize on our robust order book, strategic partnership, and strong market position to drive substantial growth. We are confident in the company's future prospects, fueled by our dedication to operational excellence, innovation, and sustainable growth. I now request to open the line for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 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. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Congratulations on a set of numbers, sir. I have two questions. The first question is- Mr. Mohit, can you be a little more louder? Is it better now? Yeah. It is much better. Yeah. Thank you. The first question is, how many circles have gone live among the order we have won? And the related question is, in how many circles you achieved financial closure? Hello. Hello. Yeah. Yeah. Currently, if you see, we are live in all the four projects of Assam. All the four circles of Assam have gone live. We have already started execution in North Bihar, and we have also started execution in the couple of packages in Chhattisgarh. For the high end metering, for HT meters and DT meters, project has been started in Maharashtra and U.P. both. Almost all the projects are under execution now. If you say go live, go live is achieved in South Bihar and in Assam only, and execution phase has already started in North Bihar, Maharashtra, and U.P., JCL. Mm-hmm. I understand, sir. Almost you can say that almost seven, eight circles has already been live. Regarding the financial closure, the company has nothing to do with the financial closure because it has a back-to-back with the platform which the company has made with GIC, so all financial closure has to be made by the GIC. I think out of these circles, a lot of circles have been already closed by the GIC for the financial closure. Is it possible to- That platform, yeah. Is it possible to talk about some platforms, how much money has been infused? Mohit, can you be please louder? Little louder, please. Is it better now? My question was, is it possible to talk about the platform, in the sense, how much money has been infused in the platform till date, from That will be really. Because that numbers will be really, we don't have those numbers, and it will be really difficult to discuss on here. We can talk about Genus Power, the listed company. Okay. But I thought that that is your associate company, that is why I am asking. My second question is on the tender pipeline. Can you just talk tender pipeline, which are the tenders which you think that will get open in the next four to six months? Currently, the tender pipeline is not very heavy because there are two stages of the tenders. There are many tenders which have been quoted under either they will open up or they have opened up, or the discussions are going on. But tenders to be quoted are couple of tenders in Gujarat, one in Goa, and a few tenders in Haryana. These are the three tenders I would say are in pipeline. Understood, sir. Thank you and all the best, sir. Thank you. Thank you. The next question is from the line of Rishabh Garg from Sachiti Family Office. Please go ahead. Hello, sir. Am I audible? Yeah. Yeah. Yeah. Sir, actually, I wanted to understand, there are 25 crore smart meters to be installed, right? Just want to get an overall view of how many have been awarded till date across the country to all the players, how many are in the process of being ordered, like in pipeline, and how many are yet to be announced? I can give you a very broad-based numbers that almost 11 crore meters have been decided, and almost 4 crore meters are under different stages. They have been quoted, few have been under negotiation, few tenders are under evaluation. I would rate them in the quoted category. That is around 4 to 5 crore meters. And almost 1.785 crore meters are to be quoted in next couple of months. This is the stage right now. And remaining, some of the states like Telangana, states like Karnataka, Kerala, a lot of numbers are left in West Bengal, so they have not come out with the tenders yet. You can- All the- categorize these 25 crores into four. 11 crores almost are already decided, 4 crores are under already quoted, 2 crores tenders are out, will be quoted, and remaining tenders have not come out. And thing. Majority of to be I could not hear you. I am sorry. Your voice is glitching. I am sorry. Yeah. now, sir? Mr. Rishabh, your voice is cracking, so can you keep the device stable? Audible now? Yeah, better. Yeah, better. So yeah, on the third party, right? To competitor. Sir, voice is cracking, Mr. Rishabh. You can later ask. Unfortunately Now, sir? Sorry, it is not good. I am sorry. Mr. Rishabh, your voice is cracking. Can we request you to reconnect again in the conference? All right. I'll return now. Right. Bye. Thank you very much. The next question will be from the line of Darshil Pandya from Centrest Capital. Please go ahead. Hello, am I audible? Yes, you are. Yes. Thank you. Sir, what would be the interest cost and debt position as on date of the company? Sorry? Interest cost and debt position of the company as on date. So interest cost is around 9% broadly, and total debt position will be around, if we take as a net debt, it will be on zero. Okay. Net debt will be zero. Sorry? Net debt would be zero. That is what you are saying? Yeah. What would be the gross debt? Gross debt will be around INR 400 crores. INR 400 crores. Are we taking any steps to reduce it? Because now at this quarter, we are at somewhere the highest interest payment that we have in the quarter wise. It will be increasing. The gross debt will be increasing. Any ballpark number that you can give? Depending on the numbers, whatever the number comes, because the company is expecting a revenue of INR 2,500 crores this year and then further for next few years also, seeing the order book. There will be an increase in gross debt, for sure. In this scenario then, do we anticipate a fund raise or something coming up in near future? No. No fund raise. It will be through the debt only. Through debt only. The second question would be, do we anticipate this Q2 to be similar as Q1, that we are seeing as of now and H2 to be a very heavy quarter? Q2 will be similar to Q1 in terms of execution because Q2, generally this period, first two quarters are always not as good as last two quarters. We have said in the earnings in the initial statement also because of the monsoon, the projects are always under different speed zone. Okay, so majority H2 will be the time that we execute more. H2, we will definitely have far better numbers than H1. Got it. One final question, sir. Do we anticipate any order inflow for this year? Any number that you are seeing that you might get these orders? Yes, we have quoted tenders and we are positive of receiving orders from those. Okay. Any guidance for FY 2026? Not right now. All right, sir. Thank you so much, much appreciated. Thank you so much. Thank you very much. The next question will be from the line of Milind Ostwal from Bajaj Finserv. Please go ahead. Hi, sir. Congratulations on a great set of numbers. Sir, there were some news reports that the Can you be a little louder, please? Hello. Sir, am I audible now? Yeah, better. Sir, there were some news reports that the Maharashtra government has put some residential meter orders on hold. We also have exposure to Maharashtra orders. Are we seeing any impact or do we anticipate any impact from such a decision, or are we aware of anything happening on the ground? Absolutely, we are aware of what is happening on the ground. Just to reply on that, if you see the projects, all these projects initially we have to do the system metering. All the HT meters, the LTCT meters, and the DT meters have to be installed. If you see the overall RDSS projects, they have to be implemented in this phase. Maharashtra has been more particular, okay, we want to focus initially on the commercial meters or on the HT, LT, and DT meters and also on the government connections, and later on we will go for the consumer metering in a bulk number. There will be little bit of impact in terms of speed in the initial days, but otherwise, it does not have any impact in the longer run. Except Maharashtra, nobody else in the country has gone for such kind of metering. Understood, sir. Sir, would it be possible to quantify this impact in terms of number of meters, maybe? We have around 1.8 million single-phase meters to be installed in Maharashtra. Originally, also we would have started only by the month of October, November. As such, I do not see a major impact on the Genus planning due to it. Any which way, all the projects initially have to be started with the system metering and DT metering. Understood, sir. This is helpful. Thank you, sir. Thank you. Thank you very much. Ladies and gentlemen, I may request you to press star and one to ask a question. The next question is from the line of Chandresh Malpani from Nivesha Investment Advisors. Please go ahead. Hello, am I audible? Yes, you are. Yeah. Sir, firstly, I want to understand your working capital days. Since we are moving from supplying to DISCOMs and now to AMISP, what are our working capital days? Finally, once the projects will be in a proper shape and everything is being properly done, the working capital cycle will reduce drastically, and we hope there will be a working capital cycle of almost 140 days. But right now, as we are in a position of starting the projects, we are just in the initial stage of starting the projects, and the projects have to go live. So initially, that takes a longer time. So right now, the working capital cycle is a little on the higher side, but finally it will be at a level of 140 days around. Okay. Sir, secondly, these are L1 in about INR 11,000 crore worth of orders in last quarter. Any update on that? There's no immediate update. Negotiations are going on, so the process is going on, I would say. We are still L1 with Genus? Yeah. Once declared L1, you are L1. But that is not a guarantee of the business. Okay. Following the process of that India. Okay. Lastly, we see that on India level, the execution monthly run rate is 6-8 lakhs. What would be Genus' market share in those installations? Can you repeat monthly? Sir, as per government data, the monthly installation trend suggests that India is installing 6-7 lakh meters a month. Okay. Just trying to understand what would be Genus' market share. In terms of installation of meters? Yes, sir. Currently, if you see, we are installing around 2 to 3 lakh meters every month, and the government data is more on the month it goes live. There are a lot of meters which are getting installed, and they take some time in going live, 45 to 60 days, that is why that mismatch of data will always be there. I would recommend all my friends from the investor community not to follow that. It will only confuse you. Okay. Got it. There is a gap between going live and installation. Okay. 2-3 lakhs would be the current figure for the year? Yes, currently. Right now, yes. Okay. Thank you, sir. Thank you very much. The next question is from the line of Nikhil Abhiyankar from ICICI Securities. Please go ahead. Thank you, sir, and congrats on a good set of numbers. Sir, during the pipeline, you did not mention Tamil Nadu, so are we not expecting any tender from Tamil Nadu this year? Tamil Nadu tenders came long back, and Genus did not quote in those tenders, so that is why we don't see them as our pipeline, as an AMISP. Definitely, once they get decided, we see them as a meter manufacturer, as an opportunity. Right. Sir, since most of our contracts are fixed priced, how are we actually protecting ourselves from any adverse price movement? Generally, historically, if you see the business Genus has been is always a fixed price contract, even in earlier contracts, which we have been doing for the last two decades. All our meter supply contracts were never less than 12 months to 18 months, sometimes up to 24 months. So if you will see, most of our work will happen in 27 months. All the supply installation has to happen in first two years from the date the contract is signed. So we follow the same process of whatever the safety we used to do when we were supplying meters, we are following the same process. In our experience of 20, 25 years in metering industry, we have not seen any major impact to it. Even during the COVID, we did not see any major impact due to it. Okay. And sir, on the equity infusion of around INR 1,700 crores in the platform, do we have any schedules on it? How much will be this year and how much will be next year? That is next. This equity infusion will be in around next 3-4 years. Right. This year, I think it will be hardly 20% or 25% of that. 20%, 25% of that. Will it be purely from debt? It will not be purely from the debt. It is already complete. Company is sitting on a cash of almost INR 500 crores-INR 600 crores. Okay. Sir, just a final question. Can you give us the number as to how many meters have been supplied in Q1, and did we book any O&M revenue for this quarter? Right now, offhand, I do not have the number of meters supplied, so I do not want to comment on that. Yes, for O&M, in Assam, since we have already gone live, almost 80,000-90,000 meters are already live. O&M revenue has started flowing. Sir, how much That's a very small number. That's a very small number. Okay. Understood. Thank you, and all the very best. Thank you. Thank you. Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question will be from the line of Srijan Sinha from Future Generali Life Insurance. Please go ahead. Yeah. Hello, can you hear me, sir? Yeah. I can hear you. Sir, I just wanted to understand a bit on the gross margin part. As the other participant was talking about, there has been significant increase in the gross margin over last couple of quarters. Is it only because of the procurement efficiencies and stable raw material pricing? Or is it also flowing in because you have started booking some bit of O&M revenues or the annuity revenues? It is not because of O&M revenues. That is very clear. It is basically because of the efficiencies, and once the quantum is increasing, it is getting better. Okay. On the O&M part of the business, let's say with 2 years, 3 years out, when it becomes fairly large. On the O&M part, how big would be the gross margin? How much can we make on that? Earlier also, we have always maintained it will be quite similar, a bit better from the supply, because one thing we all have to understand, in the business of AMISP, the meters which we are installing right now, which go live in, let's say, 45 to 60 days as per the process, immediately the O&M starts. It is not that your O&M will start after 20 months or 27 months of the installation is completed. So the meters, which I was saying, 90,000 meters are already under O&M in Assam. So these meters are already gone live and they are already under O&M. So O&M revenue has started flowing. So it is very different. It is not an AMC kind of a business that we have installed the equipment and now O&M is the AMC revenue. Here, the O&M revenue starts immediately once the meter is installed. I understand that, sir. From a margin perspective, would that be, let's say, 1.5 times or- That is why I am saying the margin-wise also, it will be almost similar or a bit better once you get into a stage where the only O&M is happening, let us say, three years down the line, we have 40, 50 million meters under O&M, so a bit better, but not any significant change. Once the scale will come in annuity, once the scale will come. There will be certainly a benefit of scale in O&M also. Yeah. I mean, sir, I am trying to understand. If you, let us say, you get INR 15 per meter per month, what would be the typical cost involved in that? Because in my understanding, a lot of that should be flowing directly to the EBITDA. That is my opinion, but it is very difficult to give you the numbers on that. We normally give the total numbers only. We do not give it separately on O&M or whatever the supplies are there, because that also is a little confidential always, so that how we work, how we participate in our tenders and all. Okay, fair enough, sir. My second question is, except the Rajasthan order that we are L1 in, is there any other order where we are L1? What is our current L1 position ex of Rajasthan? Except Rajasthan, we are L1 in one of the reverse auctions, but they are not yet declared. I would say it is beyond Rajasthan, there is one project in Punjab where we are L1 under the reverse auction. Everything is under process. How big would that be? Hello. How big would that be? That is around 1.8 million meters. 1.8 million meters. Okay. Sir, you also talked about the LOI from other AMISP that is not yet in your current live order book. Any sense on the size of that or size of that opportunity? Just to give the idea, somebody else, I think, also asked this question when his line got disconnected. Currently, in our total order book, we differentiate our orders between LOI and confirmed POs. From different AMISPs, we have confirmed purchase orders of almost INR 1,500 crores as on date. When I say this order book of INR 21,500 odd order book, it includes the confirmed POs. We have LOIs worth INR 700-800 crores further from these AMISPs, which we never include in our confirmed POs. Okay, fair enough. So that is how we differentiate as a company. This has been the practice always. LOIs are never taken as part of confirmed order book. Okay, fair enough, sir. So my final question is on the revenue guidance that you have given for this year. Since you are saying that Q2 will broadly be in line with Q1, the asking rate for H2 is very, very high. I mean, mathematically, that works to about, let's say, INR 850 crores per quarter for Q3 and Q4. Are we looking at a four-digit number by the end of this year? So is the exit rate going to be closer to the four digits? So we maintain our guidance of INR 2,500 crores, which was given in the last quarter. I am very confident that will be achieved. Mm-hmm. Okay. Sir, any slow-moving orders in our order book where the execution is not as per your expectation? Currently, no. All the orders are in the starting phase and things are in the right direction. Okay. Thank you, sir. Thank you. Thank you very much. The next question is from the line of Pankesh from Profitgate. Please go ahead. Yeah. Actually, I have two questions. The first one is regarding the backlash that has been going on at Mumbai. Some of the activists are, they have some problems with the smart metering, or they have the apprehensions that this one-time upfront cost will be recovered in the form of hikes. I just wanted to know from the company, would it impact this smart metering project in the state, and how would it going to affect Genus Power? Second question is regarding the annuity O&M. Can you please give more color on that? Earlier also, same question was asked. Except Maharashtra, as such, we are not seeing any problem across the country. We have to understand one thing, smart meter is very useful for the consumer also. It needs to be explained properly, what I personally feel. Just to give you a ballpark number. Right now in India, almost 5 million smart meters are installed in Bihar. We all can imagine, in a state like Bihar, and the consumers of Bihar accepted a smart meter. Most of them are on the prepaid. 90% of the meters in Bihar are on prepaid, 90%-95%. The consumers are supporting that journey. The state like Bihar can do so well. I am pretty sure slowly, gradually, everybody will understand the benefit of it. Apart from Bihar, one more state which is doing very well is Assam. Almost 2 million smart meters are installed in Assam. You can imagine how these states which are so, in comparison to Maharashtra, I would say, their GDPs or their development will be lesser. Still they are doing so well. Slowly, gradually, everybody across the country will understand the benefits of it. From DISCOM to consumer, everybody will be benefited from a smart meter. There is no looking back on that. I am 100% confident that I do not see any challenge. Yes, there can be hiccups at some pockets which needs to be handled properly. In terms of O&M annuity, as I said earlier also, in these businesses, O&M starts immediately after the go live has happened. Once the installation is done, within next 2 to 3 months, practically you are doing O&M parallely along with the installation. O&M, in full swing, I would say all the meters, let us say 30, 40 million meters with Genus done in next 3 to 4 years, and then the O&M annuity will be a fairly large size. In terms of EBITDA and all, it will be little better than what we currently see when installation is done. Are we including this annuity or O&M fee that we are receiving into the guidance that you have provided for the current year? It will be every year, because whatever the O&M, even in this quarter, whatever O&M company has received will be part of the Total revenue. It will be a part of total revenue. It will be part of the total revenue. Can you give color of this whole O&M, the size and the opportunity a little bit. Can you repeat, sir? Can you give the whole scenario, what is the quantum of the opportunity this annuity is? Is that your installed smart meters, you will have to take care of the O&M in that, or you can do O&M for the other companies installed smart meters? Currently, as per the AMISP contract, whoever is installing the meter has to maintain it for next 10 years. 10 years is the total contract period from the day it starts. I do not see any opportunity for doing it for others in the current stage of business. Okay. Got it. Yes. Thank you. Thank you so much. Thank you. The next question is from the line of Milind Karmarkar from Dalal & Broacha. Please go ahead. Hi. I just wanted to know, at a steady state in the next three years, what kind of margins can we expect? EBITDA margins. Currently, we are maintaining the same guidance of 15%, 16%. We don't want to give any other guidance currently. Okay. Thank you. Thank you. The next question is from the line of Tushar Sarda from Athena Investments. Please go ahead. Yeah. Thank you for the opportunity. I have two questions. One, you mentioned that after L1 negotiations happen, so I wanted to understand how the ordering happens. I thought with L1, it is a matter of time before the L1 gets converted to a confirmed order. And second was, when do you get paid? Do you get paid from AMISP when you install the meter or after go live? First is a regular tendering process. There is nothing new in this. The different state electricity boards have different written down processes, and same is followed through go for reverse auction, through go for discussions on regular, nothing is different for RDSS. On second question, we are paid after going live. Therefore, the working capital cycle gets elongated, right? After In the initial stage. Because once you install the meters in the initial stage, first going live takes more time, and once it is on the regular path, then the going live time also reduces. Okay. Thank you very much. Thank you. Thank you. Ladies and gentlemen, before we take that you may press star and 1 to ask a question. The next question will be from the line of Karan Sharma from Sharma Securities. Please go ahead. Yeah. Good evening, sir. I have couple of questions for you. First one will be, could you outline the expected timeline for executing the current order book and also, what are the projected order inflows for FY 2025 and 2026. Current order book, all these contracts that we have taken were mostly finalized in the month of January, February, a few in the month of December or March. All these contracts have an execution period of 27 months, and we are confident that we will stick to the timelines and achieve the given timelines. Accordingly, you can see for the next 24 months, most of these projects will be completed in terms of execution, what we have currently in hand. Okay. Second will be in terms of our execution capabilities, where do we stand in terms of our capacity to fulfill this massive order book? In terms of manufacturing, we have always been intending that we comfortably produce 1 million meters monthly. That is absolutely not a challenge for us. In terms of execution, we are continuously building our capability, and which is visible in our last quarter performance also, and it is only going to get better. We are on track in terms of execution and pretty confident that we will be able to meet the timelines as per the order book. Okay, sir. Last one will be, as you mentioned earlier, I wanted to follow up on the progress of Guwahati plant capacity addition. Can you provide an update on this? That plant capacity enhancement is under progress, and we expect it to be live by the end of September. Okay. Thank you, sir. Thank you. The next question is from the line of Samarth Khandelwal from ICICI Securities. Please go ahead. Am I audible, sir? Yes. Sir, I just wanted to understand how things are happening at the ground level. Earlier you had given a guidance talk about installing 6 million to 7 million meters in this FY 2025. Are we still on track or are we seeing some hurdles to that? Currently we are on track, and we maintain the guidance that around 6 million meters should be installed in this financial year. Okay. Thank you, sir. Thank you. The next question will be from the line of Tushar Sarda from Athena Investments. Please go ahead, Tushar. Thank you for the follow-up. Your order book is INR 21,500 crores. Is that your order book or that is from the AMISP? This order book currently has different broken up. If you see out of this 21,500, 19,000 is from the platform, and the remaining is directly which we get from our different customers, export customers or between supply orders. Okay. My follow-up- This INR 19,000 is platform, it gives almost 70%, 75% comes back to Genus. Since all these SPVs are still not moved to the platform, that is why it is seen here like this. Okay. My follow-up was, if it's a INR 21,000 crore order book which is to be executed in 2 years, and this year you are guiding INR 2,500 crores. Next year what- I want to correct it, sir. INR 21,500 crores is the current order book. Out of that, INR 19,000 is the AMISPs. When I say INR 19,000 is from the AMISPs, out of that 25%, I'm giving you a rough ballpark number so that everybody is clear. Out of that INR 19,000 crores, ballpark figure is 25% goes to, 25%, 30% goes to the platform, 25%, 30% goes on the O&M, which is after the project is completed runs for 6 to 7 years, and almost 40%, 45% is to be executed in the next 24 months. From there- Next year it is 2x-3x of current year's revenue, right Don't want to I am just trying to understand the order book. Yeah, let me clarify on this. So first when we say 24 months you have to understand that when the order we have received. And once we have received the order there is a time period to sign the contract. It takes some time from 3-6 months to sign the contract. Once the contract is signed then the execution period starts which is 27 months. So when we say the completion of this whole order book in the next 24 months, that means once the execution has started, that is 24 months in that. So if you calculate on the basis of that this whole order book will be completed by the end of 2027 financially or it may go up to 2028 also, something to financial year 2028 also. So basically the whole order book and when we say the total order book of INR INR 19,000 crores or INR 20,000 crores, initially in the next three to four years it will come 60% to us only, which is 60% is for the installation and supply of meters. Then comes the O&M business which will be lasting for the next eight to 10 years and remaining 20%-25% goes to the platform which is financing the whole AMISP project. Basically in that way you have to understand that it will take next by mid of 2028 you can say that this whole order book will be completed. Okay. No, I understand that. I am just trying to see. Basically, next two to three years, we will see substantial growth. If not 100%, maybe 50%-60% per annum, because you will receive more orders also, right, during the year? Yes, correct. Okay. Thank you very much. Thank you. The next question is from the line of Ravi Shah from Opal Securities. Please go ahead. Hi, sir. Thanks for the opportunity. Mr. Ravi, you are not audible. Can you come a little closer to the speaker? Yeah. Am I clear now? Yes. Yeah. Sorry for that, sir. My first question would be, what is the potential for revenue growth over the next three, four years? You just said it is 50%, 60%, but given that most of the old meters are being phased out in favor of smart meters, what kind of growth does the management expect? Basically, as I explained in the last question also, when we say 60%, right now, of the current order book, broadly, there will be a revenue of INR 12,000 crores in the next three to four years. Additionally, there will be a revenue of meters supplied to other AMISPs. Then there will be some revenues coming from the O&M also. Put together, you can see there will be a growth of more than 50%, 60% every year. I do not want to give a right guidance because it changes. We would like to give the guidance for next financial year in next quarter for sure. In fourth quarter, we will give for the 2027 also. But broadly, you can say in next three to four years, these are the numbers which will be distributed. Got it, sir. Thank you, sir, for the detailed answer. My next question would be, would you be able to provide additional information regarding our strategy towards gas and water metering going forward? On the gas meter, we have been playing the role in the current market in India, which is, I would say it is not growing the way we were expecting it, but it is not small also. It is like a typical non-AMI single phase meter, that kind of market size I see in the gas meters in India. For water meters, we are starting this journey, and we got a very good break in Australia, which gives us a lot of confidence in terms of product and capability. India is purely electromechanical based water metering. That is what used to be the case 20, 25 years back for electricity meters, whereby every electricity meter in the country was electromechanical. Same is the case of water meters in the country currently. One of the very large major disadvantages of the electromechanical water meter has been that accuracy is always being challenged, and they also take air pressures and things. There is a lot of work happening on water meter to become electronic. Once it becomes electronic, the government from day one wants to make it smart electronic, so that the data is also available from day one. Water is becoming more and more scarce, we see this as a pretty large opportunity, not only in India, in our different international markets also. Globally, scarcity. Sorry, JK. Continue, please. Genus is focusing quite a bit on the water metering segment. Do not want to put again any numbers on it currently. Yes, we see this as a very potential opportunity, and India market also becoming fairly large in next couple of years. A lot of work is happening on the water metering side. In addition to JK, I will only say that company is preparing itself for a new product. We see that globally there will be a huge, huge scarcity of water. We already see that even the city like Bombay faces the water scarcity and all. For smart metering in electricity also, we started talking five, seven years back. This is just the beginning for water meter, and it will be a huge, huge market seeing the scarcity, and it will be a global problem of water. We see a big, big market for that. Understood, sir. Thank you for that answer, sir. Sir, one last basic question would be, what would be our tax guidance for FY 2025? What is our expectation over here? Tax is we are in a regime of 45% tax, whatever is that, we will be on that also. Understood, sir. Thank you so much, and all the best. Thank you. Thank you very much. Ladies and gentlemen, before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question will be from the line of CA Amit Kumar, who is an individual investor. Please go ahead. Hello, congratulations for good set of numbers. Could you please guide about the breakup of INR 21,500, how much is for meter and how much is for installation and how much is for other O&M and others? A little bit of guidance that you provided in other slides. Just to give you an idea about it, out of this INR 21,500, INR 19,000 crores comes from the AMISP platform, where we are doing the complete end-to-end solution providing. Remaining comes from our different orders of AMISP meters. We are supplying export orders and meter installation and meter parts. So out of this INR 19,000, as the guidance was given earlier, that initially you have to break it in three pieces, 25%+. These are all very rough guidance, that 25%, 30% goes for to the platform, 25%, 30% is on the what you call O&M, which will Let's say this 25%, 30% of the O&M starts after 27 months of the installation, and 40% revenue comes from the initial installation to 30 months. This is how we have to break this order book of INR 19,000 crores. Okay. Sir, in previous question, you told that 25% of- I cannot hear you very clearly. Hello? Sorry. Can you hear me? This is better, sir. Yeah. In previous question, you were saying that 25% of this order book is related to platform. Does it mean that 25% amount will go to platform? What exactly is the interpretation? Yeah. That 25% of the amount goes to the platform. We will execute and we will pay the amount to platform. What, after one year or two year, what will be like cycle as per that? No, it is not that. You are just getting confused. All the orders which company is getting is transferred to the platform. Platform is giving us back-to-back for supplying of meters, installation of meters and O&M. Remaining, whatever the finance cost or other cost is coming, that is being in the platform only. This 20%, 25% is a part of that. Okay. So we are not liable to pay anything to platform. Is this correct? No, we are not liable to pay anything to the platform. It is just a way of understanding that total 19,000 crore order book is transferred to the platform. Out of that, platform will transfer back the orders of meters, meter supplies, installation, O&M to the company. So the company revenue will be coming on the basis of that. That 20%, 25% revenue will not be coming to the company. It being associate to the company, 26% is owned by the company, that portion will come to the company. Technically, we can say that 75% of this current 21,500 order will be recognized in the financials of Genus Power. Is this correct? Yeah. It will be recognized in Genus Power, and the remaining 20% will be a 26% only. Okay. Thank you very much. Thank you. All the best. Thank you. Next question is from the line of Chandresh Malpani from Nivesha Investment Advisors. Please go ahead. Hello. Thank you for the follow-up, sir. Sir, just want to understand the competitive intensity in the industry. We see that newer players entering with a sizable capacity and giving a target that they will install this number of meters. Just your comments on the competitive landscape. I don't see any change in the competitive landscape from last six to nine months. It's almost the similar. There's no comment on that. It is almost the similar. Okay, sir. Thank you. Thank you. Thank you. The next question is from the line of Saket Sorab, who is an individual investor. Please go ahead. Yeah, hi. Thanks for the opportunity. Sir, you mentioned that in Bihar, around 8.5 million smart meters are installed. Out of which, how many are installed by Genus right now? Sir, I said almost 5 million smart meters are installed in Bihar. Out of that, 2 million meters were installed by EESL. In that also, we have supplied meters, not installed by us. If you ask only purely how many meters Genus has installed, so we have installed around 6.5 lakh meters. Okay. Sir, what is the potential of number of, say, smart meters in Bihar? Because the population is quite large and households are- Bihar has completely ordered all their smart meters. Currently, I would say almost 10 million more meters, 10-12 million more meters will be installed in Bihar in next couple of years. Okay. Sir, why I was double-checking that there is a news regarding smart meter companies and senior bureaucrat, some corruption allegations. Does that in any way slow down the implementation or impact company like ours? Just wanted to be clear on that. No, the work is going on in full swing in Bihar, and they are the most aggressive board in the country in terms of the smart meter installation. Okay. Thanks, sir. Appreciate those timely remarks. Yeah. Thank you. Thank you. Operator, would like to take the last question, please. Sorry? Would like to take the last question. Yeah. That was the last question, sir. Okay, that is great. Yeah. 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, dear friends, for joining this call. The progress we have made in this quarter reflects our strong execution capabilities and the strategic initiatives we have undertaken. If you have any additional questions, please contact SGA, our investor relation advisors. Thank you very much. Thanks a lot. Thank you, everybody. Have a good day. Thank you. Thank you, sir. On behalf of Kaviraj Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your-