Q3 23/24

Feb 15, 2024

Summary

Q3 revenue rose 28.9% YoY to INR 258.3 crore, while a >INR 20,000 crore order book underpins FY25 revenue guidance of INR 2,500 crore. Higher financing and tender-related costs weighed on profit as project execution ramps.

Ladies and gentlemen, good day and welcome to the Genus Power Infrastructures Limited Q3 FY 2024 earnings conference call. 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. As a reminder, all participant lines will be in the 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kailash Agarwal, Vice Chairman of Genus Power Infrastructures Limited. Thank you, and over to you, sir. Good evening, ladies and gentlemen. Hello. Yes, sir. You are live. Good evening, ladies and gentlemen. A very warm welcome to the Q3 FY 2024 earnings call of Genus Power Infrastructures Limited. Along with me on this call is Mr. Jitendra Agarwal, Joint Managing Director of Genus Power and SGA, our investor relation advisor. The results and investor presentation are uploaded on the stock exchange and company website. I hope everybody has a chance to look at it. Since July 2023, our company has consistently achieved remarkable success by securing a series of seven prestigious orders. The orders aggregating to approximately INR 16,185 crores net of taxes are for the installation of approximately 1.82 crore smart prepaid meters. In Q3 FY 2024, we had a total order inflow of around INR 9,522 crores net of taxes. The trust and confidence demonstrated by our client is a strong testament to the dependability of our cutting-edge smart metering solutions. Our total order book has surpassed INR 20,000 crores net of taxes, indicating a promising outlook for future revenue growth. It is worth mentioning that the fulfillment of these orders will commence only after a period of approximately six to nine months from the date of order. This is primarily because of the time needed to complete the necessary formalities for starting the projects. These formalities encompass a range of activities, including necessary approvals, negotiation of contract, and logistic arrangements. We strive to diligently attend to every detail to guarantee a seamless and successful execution process. The execution cycle of the current order book is about 27-30 months, thus it provides healthy visibility of our top-line growth, particularly for FY 2025 and FY 2026. Numerous state electricity boards have commenced the bidding process to procure smart meters, underscoring the positive impact of the reforms-based result link power distribution sector scheme. Our analysis indicates a high probability of witnessing a steady inflow of order volumes in FY 2025 also. Our strategic partnership with GIC represents a significant achievement in our journey, bringing together the capabilities and recourse of both entities to drive innovation, sustainability, and efficiency. The formidable presence and robust financial position of GIC, combined with our proven track record in delivering cutting-edge metering solutions, create a powerful synergy that will propel us to new heights. Talking about the quarterly results, revenues stood at INR 258.3 crores, up by 28.9% as against quarter three FY 2023 revenue of INR 200.4 crores. As communicated in previous quarters, we expect a notable growth in revenue starting from Q4 2024. EBITDA stood at INR 27.2 crores, up 33%, as against INR 20.5 crores of Q3 FY 2023. We have witnessed a significant rise in employees costs and other expenses due to our ongoing efforts to expand our workforce and enhance our systems. This is in anticipation of fulfilling the substantial order book we have secured. Profit after tax stands at INR 13.5 crores for Q3 FY 2024, an increase of 16.1% as compared to INR 11.6 crores in Q3 FY 2023. However, the profitability of our company in Q3 FY 2024 was impacted by a substantial rise in financing expenses due to company's requirement to furnish additional bank guarantees in order to secure the large influx of orders. According to our evaluation, we expect a significant surge in our revenue from FY 2025 onwards. This will be driven by the strong performance of our order book and a steady inflow of new order books. Our conservative basis, we expect to record a total revenue of about INR 2,500 crores in FY 2025. With operating leverage kicking in, we also expect our operating profit margin to significantly improve. We have established ourselves as a dominant player in the Indian electricity metering industry, boasting an impressive track record spanning more than two decades. We strive to solidify our leading position in the smart metering industry by leveraging our distinctive abilities and capabilities. With our strong presence in the Indian metering industry, we are in a prime position to capitalize on the sector's lucrative growth prospects. We maintain a positive outlook regarding the substantial enhancement of our business operations starting from the fiscal year 2025 and beyond. Now I request 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 phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets only while asking a question. Please, for a moment while the question queue assembles. The first question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead. Thank you, sir. Thanks for the opportunity. Sir, we have seen significant orders for AMISP across India. Can you just give out a number as to how much orders are bid out till date, and what is the remaining pipeline now? Hello? Hello. It's not very clear to me. I don't know there was a disturbance. Can you repeat? Sir, am I audible now? Yeah, it is better. No, it was audible. Suddenly I lost you only. Okay. My question was, sir, we have seen a huge order inflow from AMISP till date. What is the quantum of total orders bid out till date across India, and what is the remaining pipeline? Just to give you an idea, already almost 50% of the tenders have been floated. You see, we have been maintaining that total 25 crore was the target of the Government of India. If you also say they started this journey in 2017, 2018, and this is almost 30 crore meters which will be tendered, ordered over the course of time. Out of that almost 50% is already tendered, out of which 10 crore orders has been decided, and 4 or 5 crore tenders are either in the pipeline to be quoted or already quoted to be decided in next 3 to 6 months. This is the current situation right now. Is it fair to assume that the total quantum of the orders bid out till date is somewhere around INR 1.25 trillion to INR 1.3 trillion, or is it more than that? You are talking in terms of value? Value. You can take a ballpark figure of INR 10,000. Okay. Around 15 million meters to INR 10,000, I think will be easier. 15, not 15, I think one 150 million meters. 150 million. Understood. Okay, sure. Sir, now coming to the results for the quarter. We have seen a very large spike in our gross margins. The gross margins have increased to almost 44% in this quarter as compared to somewhere around 36%-37% earlier. Is it that we have started executing the new orders which have got higher margins? Yes, because of the Even the service revenue has started coming in. The execution of the new order in the service revenue, that has helped the overall gross margins. Sir, the service revenues are from the AMISP orders? From the AMISP orders which we started, especially from the South Bihar projects. For South Bihar you are saying? Yeah. Can you give us the split between the revenue from supply of meters and the service revenue? Exactly, I don't have right now. A ballpark would be fine. Actually, basically, not exactly these numbers are there. Because we treat as an EPC contract where it is with meter installation, everything comes together. Normally we treat these numbers like that only. Okay, understood. Sir, now that we are closer to FY 2025, can you just give us some guidance about the execution for next year? Execution, almost all the orders, the contract agreement has been signed. As we said in the opening remarks also, generally whenever any LOA comes, the contract agreement is signed within 2-3 months. It takes practically 6-9 months on the ground to start the execution. Out of the- Most of these orders have been decided in the month of July, August. Some have come in the month of October, November. Most of these projects will be on the floor from the second quarter of next financial year. A lot of them will start from the first quarter also. You will see almost every project under execution starting from second quarter of next financial year. In my opening remark, I have already given a revenue guidance of around INR 2,500 crore. INR 2,500 crore. Yeah. Okay, I will come to that. Sir, my final question was regarding the equity requirement in the platform in the next year itself, and what is the cash on our books as on date? Basically, equity requirement will depend how the executions will happen. The cash on our balance sheet is already because that warrant money has already also total money has come from GIC. Almost we are sitting on a cash of almost INR 500 crores on the books. INR 500 crores. The equity requirement, we don't have. Assuming INR 2,500 crores of execution, what will be the equity requirement? That platform will be up for execution of INR 2,500 crores. The platform will be requiring a fund of almost, you can say, around 70% or 80% of that, and out of that, there are some debt also and equity also. When we talk about Genus, we have given a commitment of equity of around INR 1,600 crores for next 3 years. I don't think there will be an equity requirement of more than INR 300 crores, INR 400 crores for this particular year. INR 300-400 crore for this. Yeah. Okay. Sure, sir. I've got more questions. I'll get back in with you. Thank you. Thank you. The next question is from the line of Rahul Kothari from Grit Equities. Please go ahead. Sir, pardon me if I might have mistaken. You suggested a guidance of INR 2,500 crore for FY 2025. Is that the number? FY 2025, yes. Okay. Sir, secondly, also wanted to understand on the breakup of the order book regarding how much of the part of the order book is regarding supplying meter to third party AMISPs too? Most of the order book is for the supplying meters to our own SPVs. To the third party, we are supplying meters, but majorly here you will see 95% or 90% I would say, will be supplies to the Indian, to the Genus SPVs. Okay. To the platform SPVs. Okay. Sir, what we are looking is at now is that 50% of the orders have been released. Since it is now a good time passed by, can we expect or are we pitching for the securing orders from third party AMISPs, since they might also now start for placing orders for smart meters? Well, just to clarify that. 50% of the tenders has been floated. So if you say tenders worth INR 150 million has been floated, out of it, INR 100 million has been decided, and INR 50 million will get decided over the course of next 3 to 6 months. So that is the current scenario. Now, out of INR 100 million, 22 million is secured by Genus itself, and remaining, yes, we are in touch with all the AMISPs players, Adani, Monte Carlo, IntelliSmart, and we have secured good orders from Adani also. We have secured good orders from IntelliSmart, we have secured good orders from Monte Carlo. And when we say order book of net INR 20,000 crore, we have already added those numbers. Okay. That's just for me. Thank you. Thank you. Thank you. Participants, you may press star and 1 to join the question queue. The next question is from the line of Milind Karmarkar from Dalal & Broacha Portfolio Managers. Please go ahead. Hi. I just wanted to understand. We say that we have INR 20,000 crore worth orders, and we also say that the stipulation is that this should be completed within 27 to 30 months. If I look at that, then somehow this math doesn't fall in place that next year we should do only INR 2,500 crore turnover. Just wanted to understand that. Yeah. Your point is very valid. If you see, only do the mathematics, which is certainly right. You have to break these orders into three parts. Okay. I would say in ballpark numbers, around 45% is the initial supply installation, around 25% is the O&M, and around 30% is the interest. When these orders have come, 30% goes to the platform revenue. The remaining 70% comes to the revenue of Genus Power. Right. Out of it, 45% comes in first 27 to 30 months, and remaining comes in the next 6 to 7 years as O&M services. These are the ballpark numbers you can divide this. Okay. Even if I do that, then about INR 9,000 crore worth orders are to be finished in 27 to 30 months. Yes. Even then it seems quite low. Next financial year, because a lot of these projects that I said earlier, there are a lot of these orders have been decided in the month of November, December. A lot of contract agreements we have signed in January, February. Practically in full swing, these projects will come on the floor from the third quarter of the next financial year. Okay. That is the reason next financial year will be a little less in comparison to the year following up. My second question was that we have guided for about INR 1,200 crore of turnover when we had our second quarter call. Just wanted to understand, we are currently, I mean, if I again calculate on that basis, the fourth quarter has to be extremely good, or we have to cut down on our expectations for the fourth quarter. We are not cutting down on the expectation. It should be extremely good. Okay. My third question was on investment. I see a significant amount of investment. If I go through the investment schedule as per the annual report of 2023, quite a number of investments are on preference shares or equity shares of our associate companies. I just wanted to also understand about the volatility in the other income. If you could explain that as well, and these investments, you think will continue, or there is going to be some kind of a consolidation there as well? Here you have to understand that all these investments are the old investments, and company has already filed a demerger scheme of these investment division out of the company in the NCLT two years back. The order for that is already pending. Once that order will come, all investments of preferential or any associates or non-associates will go out from the company as a strategic move from the company as an investment division going out of the company. Only things remain will be the company where there are two listed shares, a trust, and the company's holding, which is a Genus Power shares and of Genus Paper. That will remain in the company. When we do a consolidation, the notional value of that share is coming up and down with the paper share. That reflects in losses or the profits of the other income when we go to the consolidated balance sheet. Okay. The last question was on other income. Why is there so much of Because if I see the stock price of Genus Paper, that has not moved so much in the quarter. Despite that- When you see consolidation, there is a downfall in that. That is why you see a loss in the consolidated balance sheet. When you see standalone balance sheet, the other income is because of the FDs and a lot of the cash company sitting, which is in the form of the FDs, and whatever the interest is coming on that goes to other income. Then some equities that company is holding of other small companies and all, any movement in that also reflects there. As a thumb rule, what does one expect over any one-year period, the other income of the company? Forget about the adjustment of profit or loss, which you have to make because of accounting standard, the fall and rise in the value. What is the rough other income which one should consider? It will be at the same levels, approximately. On an annual basis? On the annual basis. Okay. Thank you very much. Thank you. Participants may press star and one to join the question queue. The next question is from the line of Abhilasha Satale from Quantum AMC. Please go ahead. Yeah. Thank you for taking my question. Am I audible? No, you are not audible clearly. Some noise from your side. Yeah. Is it better now? No, ma'am. Now is it better? No. No, it's a public area it seems. There's a lot of noise. There is a lot of background noise coming from your side. Okay, I'll join back. Thank you so much, ma'am. The next question is from the line of Neil Ostwal from Bajaj Finserv Asset Management. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. My first question is with regard to the Assam AMISP that you had announced in January. Have you started recognizing revenue for that? Not yet. We will start recognizing the revenue of that project from next month onwards. Next month onwards. Okay. Wonderful, sir. Secondly, there is a board approval for some kind of expansion in Assam. Is it over and above the existing one crore capacity that we have, or this is some kind of upgradation, if you can throw some light? This is expanding the plant in Assam. The work is already going on. This will further add to the capacity of one crore meters. Okay, this will be a further addition. Yes. Okay. Thank you, sir. Those are my questions. Thank you so much. Next question is from the line of Abhilasha Satale from Quantum Asset Management Company. Please go ahead. Hello. Is it on? Yeah. Is it better now? Yeah. Please ask your question. Yeah. Sir, I just wanted to know that we had committed INR 1,600 crore of investment over next three years, and next year we will require around INR 300 crore. How much our cash flows will support these kind of investments, and how much we will have to raise in debt for that? This is my first question. Basically, as I told in earlier question also, that company is already sitting on a cash of around INR 500 crore. Number one, and number two, where we are giving a guidance of INR 2,500 crore revenue this financial year, and we are looking for EBITDA of around 15%-16% of EBITDA levels and all. There will be a good cash accruals in the company also. Already those three years have been planned from the cash accruals and the cash that company has. I don't see anything that has to be coming from the debt. There might be some increase in debt for the working capitals and all. Otherwise, any equity participation, company don't see any debt requirement or any fund requirement. Okay. I would also like to know if you have already seen INR 45 crore of tenders being operated over a period of time, and further, there is a target to complete around INR 25 crore of this installation over the next three, four years. How do you see your order inflows moving on from the current level? Can you give some specific, will you be able to maintain market share or grow, or how is the competition? What kind of visibility you are seeing in terms of your overall order book moving by the time this entire order gets executed or tendered out? The orders will keep growing. We are keeping a close watch on what all tenders are coming and generally on the projects which we feel are good places to work or within our capability, we are bidding the tenders. We will be able to maintain our market share over the period of time. Okay. So this year, INR 10 crore and then next year also, you expect the similar kind of tendering to happen? No, I don't expect similar kind of tendering. It will slow down a bit because a lot of states have come out with the projects. They will see the success of these projects and then further tenders will come out. Okay. How this AMISP or this platform business, platform future move in terms of execution? Can you guide something on that front? On execution, I could not understand. What do you mean by that? This EPC, how that revenue will kick in. It is a very simple thing. As I told earlier also, whatever the total order book you see, out of that 45% is the installation and supply revenue, and 25% is the O&M to be done in next 7-8 years. All this execution will happen in next 24-27 months. Okay. All this execution has to be done by Genus Power because they are the EPC for these projects. Okay. On the entire, you were guiding for 15%-16% kind of numbers. Yes. This kind of a data. Okay. What kind of CapEx you would require to execute this number? How much CapEx? You are guiding for FY 2025, FY 2026. We are not doing any major CapEx to require. There will be lot of investment that will be required in terms of manpower, because for the production side and all, we have already done the CapEx, whatever was required. We are comfortably placed in next three to six months to meet out all the requirements in terms of manufacturing. In terms of execution, yes, a lot of investment is going on the manpower. A lot of things are being built. That cannot be seen as a CapEx. It is more of an OpEx cost. It will be incurred to execute these projects. Okay. Thank you. Thank you. Thank you. The next question is from the line of Sonia Varnekar from Dalal & Broacha Portfolio Management Services. Please go ahead. Hello, sir. Thank you for the opportunity. Sir, you highlighted that your gross margins have picked up due to service revenues. Since service revenues is likely to continue going ahead, can we expect this kind of gross margins to continue in coming quarters also? Yes, we have already given the guidance that we will be able to maintain 15%-16% EBITDA in the next financial year. We continue with the growth. Okay. Thank you, sir. That is it from my side. Thank you. Thank you. The next question is from the line of Dolly Choudhary from Niveshaay Investment Advisors. Please go ahead. Hello, sir. Thank you for the opportunity. Am I audible? Not very clear, but yes, I can understand the question. Please. Okay, sir. First of all, I had a question regarding the communication technology. In the current order book, can you give a ballpark figure regarding the composition of cellular and RF? There is no ballpark figure on the composition. These are all open technology tenders, where as an AMISP, we will decide during the course of period, which is the technology we are going to use. As Genus, we are open to all the communication technologies, and currently we are working both on GPRS, on RF, on NB-IoT, and even in some cases, we are even using the local technology. We are open to working with all the communications available. We don't have any preference regarding RF or something, we are open to both of them. On the site. As Genus, there's no preference. Okay, sir. Another question I had regarding the execution phase, I wanted to know, the execution will pick up in next years. I am sorry if I am repeating the question. And- Any challenges that we will face if we Any challenges that we are going to face as of now, the company is- That execution will be in full swing for all the projects in next financial year. Yes, once we get into the ground, whatever the challenges we face, which is very normal, it is not that we are doing it for the first time. We have done the installation work in the past also. So we are well prepared and ready for that. Okay. From the government and the people, because these are the projects which are primarily supported by the government, and of course, the local public is also in support of these power meters. So there will be limited challenges with this unit. Okay, sir. Whatever meters we have installed, what is the SLA meet percentage? We are meeting the RDSS requirement. I mean, whatever is required, we are comfortably meeting that. Okay, sir. That will be all. Thank you. Thank you. Thank you. The next question is from the line of Aksh Vashist from Future Generali Life Insurance. Please go ahead. Hi, sir. Thank you for the opportunity. I just had one question. I just wanted to understand, what explains this loss of about INR 10 crore that we have had this quarter from the associate entities. You are talking about consolidated revenue? Yes. The consolidated numbers, the share of loss. Yeah. I earlier also told that the company is holding few equity shares like Genus Paper and all, and these are the adjustment of market price of these shares and all. The company had some expenses in its associate platform company, which it has made with GIC. So initial expenses are there put up in that, and in that consolidation, some numbers have also come. So basically, it is mainly of the price adjustments, which is the notional figure and all. Secondly, some expenses that has been being associated, 26% member of that platform, whatever the expenses are being made, that has come here. Thank you. Okay, sir. Thank you. Thank you. The next question is from the line of Rahul Shah from TS. Please go ahead. Mr. Rahul Shah, your line is unmuted. You can please proceed with your question. As there is no response from the line of current participant, we will move on to the next question. The next question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead. Thanks for the opportunity, Adlin sir. You mentioned that we are receiving services revenue already. Basically, I wanted to understand how is the receivable cycle over there. If you can just quantify number of days or something. Receivable cycle is as per the RTSF, but it is not exactly an RTSF center. They are very differently designed by Bihar, where they are giving almost 30% as an upfront payment and 70% as a per meter per month revenue. For that, whatever the payment terms is 30-45 days, we are getting paid for the services within the time period. Okay. So within 30-45 days, we are getting paid. Okay. And sir, you mentioned about capacity expansion in Assam. Can you just quantify, it will be an additional one crore. What will be our exact capacity after that? What is the total capacity that we are incurring for this expansion? We will be maintaining a capacity of around 1 million meters a month. This is what we are going to achieve after all these small expansions, what we are doing in different units, what we have. In Meerut, we are doing it as well. Okay. Our capacity will be 1.2 crore annually after- 1 million meters a month is what we I understand. Sir, you mentioned that you are investing in team building and manpower expansion. What exactly will be our trend rate going forward in terms of employee cost, and why is there a huge spike in other expenses as well? You will have- Is it directly linked with execution? It is directly linked primarily with the tender submission. You have to understand, when we are participating in such tenders, there is a huge cost of field surveys and a lot of cost to participation of tenders is incurred. That is why you will see a major cost going up in that particular section. When we have to bid for these tenders across the country, we have to do a very ground-level survey. Right. Going forward- That is primarily the cost you will see the Going forward, once we reduce our, what do you say, tender, as in there won't be many tenders going forward. Once we reduce our participation, will this expenditure come down as well? Yes. The cost of quoting tenders, the cost of securing orders, the cost of initial investment is very high. As I said earlier, that could be projects initially when we are quoting the tender, when we are getting the people in the field. That is why you are seeing a lot of expenses on the higher side. Later on, they will come down significantly. Nikhil, I would like to add there just to give a clear picture also here. You will see there are three types of expenses. One is employee benefit expenses, one is other expenses, and one is finance cost. You see that all three are increased. Basically, when you say team building, that increases your employee benefit expenses. When you say that there are a lot of surveys are being done, a lot of groundwork is being done before going for the tender or before execution of the starting of the tender. That also increases your cost a lot. When we come to finance cost, when you bid a lot of tenders, you have to give a lot of EMDs, you have to give a lot of bank guarantees. There's a lot of finance charges out there involved. Basically, all these three, when we go further and when our revenues will be increased, you will see a substantial Number coming down in terms of percentage and all. That is why we are always giving a guidance also of 15%, 16%. That okay, we are very comfortable that we will be getting an EBITDA of 16%, because we can clearly see that from where these will be coming. Mm-hmm. Can we assume that a large part of our manpower expansion is already behind us, and there won't be- There will be a lot of manpower expansion further that will be ahead. Okay. Because right now we are maintaining execution. No, I am talking in terms of percentage, not in absolute terms. I am not talking about absolute terms. Yeah. Okay. Sure, sir. That is all from my side. Thank you, and all the very best. Thank you. Thank you. The next question is from the line of Deepak Potdar from Sapphire Capital. Please go ahead. Yeah. Am I audible, sir? Yes. Yeah. Thank you very much, sir, for the opportunity. So just first up, as clarification, I think you mentioned in one of your remarks that this fourth quarter, we expect a bump up in our execution. So what sort of execution range we are expecting this fourth quarter? We are maintaining the guidance of INR 400 crore. Okay. Accordingly, the execution will be done. Basically, in broad terms, you can understand that the next quarter we are expecting numbers of INR 400 crore in revenue. Yes. Broader term. Yeah. Along with that, because of your leverage advantage as well, you do expect some improvement in your margins as well, right? Hello? Hello? Ms. Akshata Deo, can you hear me? Hello? Hello. Yes, Ms. Akshata Deo. Okay. I lost the line for a second. I just wanted to understand that you mentioned that you need more CapEx if you go above INR 2,500 crore of revenues after a point in time. Are you expecting to do some CapEx post FY 2025 in order to fulfill your contract expectations? No major CapEx will be done. Okay. The Assam expansion that you did, can you tell me what was the cost of that expansion for 1 million meters capacity? We are creating a capacity of 1 million meters. All the plants put together, that was the target. That is the reason, and majorly we have wanted to expand our Assam unit, so that we can manufacture more meters there. It's not that 1 million meters is for Assam only. What is your total gross block then, if you can share at this point? What is the total? Gross block. Gross block, I have to check and will come back to you on that. Okay, sure. Thank you. Thank you. The next question is from the line of Vivek Gautam from GS Investment. Please go ahead. Yes, sir. My query is regarding the political implication, especially of the installation of smart meters, because if you remember, Himachal election BJP lost, and many analysts told that because the smart meter installation happened at the wrong time, just before election, because smart meter installation is leading to high bills and people who are used to low bill payment, and they are having this risk, then the resentment and anger comes in, and there is a political cost for it. So because of this political cost, any implication on our installation plans and- Sir, there is something wrong in the information, because Himachal has not yet installed smart meters. So losing elections due to smart meters in Himachal just doesn't stand. I could not relate to that. No, there is a professor of ISB Hyderabad who tracks the sector very closely, and there is a retail con call he was having. He was praising that power reform sector, which has happened in India over the last few years under Power Minister Mr. R.K. Singh and the team. I would like also to know about your comment on that. He very clearly mentioned about the Himachal state election outcome. You mean to say there is no smart meter installed in Himachal for this shut down? Yeah, Himachal RDSS is not yet implemented. They have come out with three tenders, which are not even decided yet. For me also, this is a little confusing, how on the basis of smart meters they lost the election. That is a very tough statement for me to absorb. The fear is Secondly, I want to add onto one thing. The highest number of smart meters has been installed in U.P. I think almost 2 million meters, if I am not wrong, and it was installed prior to the elections of which BJP won again. Practically, I do not see any link of smart meters with the election that is such. No, you share me your number. I will give you, post you the con call detailed video, which is there. Because, the professor of ISB Hyderabad, you must also be able to find out. He tracks the sector very well, and he was very appreciative of the reforms which are being done in the power sector. Sir, I heavily appreciate it. I cannot challenge it, but the matter of the fact is, RDSS is still not implemented in Himachal. So that I guarantee you. Okay. So you mean to say there is no political risk for the smart meters? Almost every state has done some smart meters, and states have done it from the last seven, eight years. There were a lot of pilot projects which were going on. RDSS started implemented in last one and a half years only, and till today, Himachal has not gone ahead with the ideas of smart meter installation. Okay. Anything else you would like to highlight around the opportunity size and the expected CAGR and the differentiator our company is having, sir? We have been sharing this, that yes, we are a metering company. We have got into AMISP, and we have already given the guidance of next financial year. We expect very robust growth, yes, in the years to come. Hello? Yeah. Yeah. Nothing else to add on to that. No, because what is the opportunity sign and expected growth rate for our company for the next 2 years, sir? Sir, I have already given the guidance on next financial year, almost 2x of the current financial year, that is INR 2,500 crores. We have an order book of around INR 20,000 crores. So we see a very good growth for the company in the coming years. Almost 50% of the tenders has been floated with out of it, I would say 35% is already decided. Remaining 15% will get decided in the next 3 to 6 months. This has been the trend. Okay, sir. There was a very good talk by the Power Minister Mr. R.K. Singh, on the reforms here taken recently in the ET Now conference. If you would like to highlight a few points on the power sector reforms in the coming year, and how is the future looking like, sir? Sir, the current government is very positive about the reforms, and it is the need of the hour. We have to just understand it very simply. As a consumer of electricity, every individual on Earth needs electricity and is a consumer of electricity. And with so much of consumption of electricity increasing and very many different types of electricity generation is happening, a smart meter is the need of the hour. So it is required by the consumer, it is required by the distribution companies, it is required by everyone. So it is no more a luxury, it is a necessity. So since we have interest in the distribution sector, we will get a little bit into the depth of why smart meters are needed. So this is the first step towards a smart grid. It is a necessity now. Okay, sir. Any concerns which we are having on the B2C and the payment receivable side, sir, if you can just answer my question for my- Okay, sir. And sir, any concerns which we are having on the B2C and the payment receivable side, sir, if you can just answer my question for my. So far as the RDSS projects are with the direct debit facility, we don't see any problem with the financing. Thank you, sir. Thank you very much. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to two per participant. If you have a follow-up question, you can rejoin the queue. The next question is from the line of Darshil Pandya from FinTrust Capital. Please go ahead. Hello, am I audible? Hello, Pandya. Hi, sir. Thank you so much for this detailed answer on the other expenses part. One thing I want to ask is, your tax guidance for this year, and because it's been very fluctuating for whatever, for some time. If you can please help us with your tax guidance. That would help. Basically we are in a new tax regime where the tax guidance will be almost 25%. It will be at 20. Sometimes it is a little fluctuating because of some expenses which are not allowed in the tax things and all, but that sometimes make it here and there. Otherwise, the tax guidance, 25%. 25% for next year as well, right? Yeah. Are we planning to take in debt or something for this year or something? This is an ongoing process. Whatever the working capital requirements will be there- Any major working capital requirement, I meant. Majorly, we require more of the non-fund based limits and all, so there won't be any major things coming to that. Already we have given an announcement of $50 million we have already taken from DFC, which has not been yet disbursed. That disbursement will surely come in the end of this financial year or maybe next financial year. That will be primarily an addition in the working capital. That has already been taken in consideration because that is already sanctioned and we have already told many times that we have got a sanction of $49.5 million from DFC. Okay, got it. All right, sir. Thank you so much, and all the best for Q4, FY 2024. Thank you. Thank you. The next question is from the line of Deepak Potdar from Sapphire Capital. Please go ahead. Yeah. Hello? Hello. Yeah. Yeah, we can hear you. Yeah, my line got dropped. I was just asking that time, with improved execution in this fourth quarter, we expect some improvement in margins as well, right? Because of leverage advantage that you ideally should get. Well, surely. Okay, fair enough. In terms of order breakup, you did mention, right, INR 20,000 crore of order that we have, about 45% of that, which is coming to about INR 9,000 crore, is what we need to supply over next 27 to 30 months, and remaining INR 11,000 crore will be realized as an O&M. Just to make it simplified again. Yeah. Out of the 100% order book, Yeah the 30% order book goes to the platform. Correct as a financing arrangement. 45% is installation and supply, and 25% is the O&M. This is how you have to see the total order book. Understood. 45% of that is what ideally would come to us, right? 45% of that ideally would come to us in next 27 to 30 months. 25% in next six to seven years, and remaining 30% goes to the platform. 30% goes to the platform. That is very clear, sir. In light of that, if we are expecting execution of INR 2,500 crore in FY25, what sort of execution level we are seeing for FY26? It should be north of INR 4,000 crore, INR 5,000 crore? It will be much better than 2025, and we would like to give that guidance closer to once we start executing projects in 2025. I think we will be able to give you better guidance on that. Understood. Mathematically, definitely it should be much better than 2025. Much better. Yeah, of course. Just one last thing. Because you do expect your execution in next year to ramp up so much, on a quarter-on-quarter basis, we do expect that whatever execution we are doing on a quarter-on-quarter basis, we should see some improvement for next three, four, five quarters at least. You will see a lot of improvement, and full execution, full throttle execution, according to me, you will start seeing from the third quarter of next financial year. Third quarter FY 2025, correct? Yeah. Okay. That is very helpful, sir. But one thing, as you asked, that every quarter in next 8-10 quarters, every quarter you will see some improvement is going on because there will be a ramping up of all the projects which we have already won and some new projects and all. So there will be faster execution in every quarter. Fair enough. I got it. That is very helpful, sir. All the very best to you. Thank you. Thank you. Thank you. Just a reminder to all the participants, please restrict your questions to two per participant. If you have I think let us take one or two more questions because it is around 3:00 and we have some more meetings after that. Sure. The next question is from the line of Dolly Choudhary from Niveshaay Investment Advisors. Please go ahead. Thank you, sir. I had a follow-up question. The tenders that you were talking about that are floating, I wanted to know that how much floating is going to the OEMs, the meter manufacturers, rather than the AMISPs? All these tenders are AMISP tenders. Yeah. So how is the flow moving towards the OEM? How the execution- Flow moving to OEM means? Like the meter manufacturers, how the orders are going to them, on what pace? You have to see the business from two angles. Right now, when we talk as an AMISP, all this order book is as an AMISP Genus. Then when we give our orders to the different vendors. I am still unable to connect to your question. When it comes to tendering business, it is only RDSS tenders which are quoted by the AMISP. These can be meter vendors also. Okay, sir. One more thing, as the deadline is quite strict regarding the RDSS tender, are we only supplying to our own AMISPs or the- No, as mentioned earlier also, we are working with all the AMISPs, and we have received orders from different AMISP companies, and we are supplying meters to them. Okay. Sir. Thank you. Thank you. Thank you. The next question is from the line of Akash from Dalal & Broacha Stock Broking. Please go ahead. Sir, thanks for the opportunity. My question was more regarding the capital structure. Related to that. Sorry, can you come again, please? I actually wanted to understand how our capital structure will move forward. Currently, we have around 350 odd crore of debt in our books. Going forward, that will also require a lot of working capital and also per annum basis we will be investing around 300-400 crore in the SPVs. How our capital structure will be going forward? How much debt will we further take up, for working capital as well? Basically, as I told earlier also, there will be cash accruals that will be regularly happening for next 3 years also. Reasonable cash accruals will be there, which will be funding our equity requirements. When we talk about the working capital limits, as I told already, we have been sanctioned a loan of around $50 million from DFC that will be coming to the balance sheet, and I think that will be more than enough. There might be some more requirement of the working capital that we will see in the coming times and all, but the company is already sitting on a cash of INR 500 crore plus there are continuous cash accruals happening to the company. Got it. Everything will be more or less internally accrue, and just for the working capital we will be taking debt. Yes. Got it. Thank you. Thank you. The next question is from the line of Nikhil Jain from Galaxy International. Please go ahead. Yeah, thank you for the opportunity. I just have a couple of questions. One was, I just wanted to know if you can give the breakup of exports for this quarter on. If you see the overall export business out of almost eighteen hundred crore business we have done in this financial year till now, till date of December. Out of that, around INR 90 crore is export. We have done a healthy export business. Do we expect an increased traction in the smart meters for Middle East, as mentioned in the annual report? Currently, we are sitting on an order book of around 45, 50. Yes, a lot of tenders are ongoing in the international market also. We do have interest now. We see a good export business year on year to be done by Genus Power. We are spending a lot of our time and energy on it. Right. Thank you. The second question is, I just wanted to get a comfort or let's say, our preparation, preparedness to execute all these seven or eight different AMISPs in different part of the countries at the same time. Somewhere in 2024, 2025, they would be running simultaneously, right? How prepared do we feel ourselves in terms of manpower, processes, systems and other things? We are continuously working on it, and one thing is we have done projects in the past in multiple states, multiple projects under our ECC division. A new thing for Genus. Yes, this is again, we have also not done it in the past, but actively we have built our team processes recently, and very senior person has joined as a Chief Operating Officer in our GMISP division. It is a continuous process. We are building our systems, processes, manpower, and we are very confident that if somebody to do it successfully in this country, Genus is definitely going to be one of those. Okay, very good to know. Thank you. The last thing, actually on the joint venture side, on the joint venture with the financial company, 30% goes to the joint venture, right? The financing part of it. But some part of that should also come back to Genus, right? Given that we are doing an equity investment of whatever- Shareholders of the JFO. Right. So 26% of the profits of the joint venture, as and when they happen, will also come back and flow to Genus in due course of time, right? Yes. Right. Okay, fine. So that is all from my side. Thank you. Thank you. Thank you. Can we close the call now? It's already 3:00. Yes, sir. That was the last question for today, ladies and gentlemen. I would now like to hand the conference to Mr. Kailash Agarwal for closing comments. Over to you, sir. Thank you all for joining this call. I sincerely thank you all for your continuous support, and we assure you that the company is on the right track and will be achieving great heights in coming years. Thank you very much. Thanks a lot. Thank you, everybody. Have a good day. Thank you. Thank you. On behalf of Genus Power Infrastructures Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.