Note that this conference is being recorded. I now hand the conference over to Mr. Amar Gore from Axis Capital. Thank you, and over to you, sir.
Thank you, Yusuf. Good evening, everyone. On behalf of Axis Capital, I welcome you to the Q3 FY25 post-results conference call of Olectra Greentech Limited. From the management team, we have with us today Mr. B. Sharat Chandra, CFO, Mr. P. Hanuman Prasad, company secretary and compliance officer, along with teammates from finance and strategy. I will now hand over the call to Mr. B. Sharat Chandra for his opening remarks, post which we can have the Q&A. Over to you, Mr. Sharat Chandra.
Thank you, Mr. Amar. A warm welcome to all of you who have joined us today for the Olectra Greentech earnings call for the Q3, 24-25. We are taking as read the presentation which is put on our website, along with the safe harbor statement thereon. We are pleased to state that overall results of the Q3 and nine months remain strong, with growth in our consolidated revenue and profitability. We have, till 31st December, cumulatively delivered about 2,448 electric buses and 51 electric vehicles. I would like to present the key highlights of your company at a glance. Olectra buses have successfully covered more than 30 crore kilometers across the length and breadth of the country. Strong demand continues, with the company's net order book of electric buses standing at 10,224 numbers after delivering 282 buses in Q3 FY25.
Notably, we unveiled our latest technology advancement, the Blade Battery technology, at the Bharat Mobility Global Expo 2025. With its cutting-edge design and exceptional energy density, the Blade Battery promises not only longer ranges but also the faster charging time, ultimately enhancing the performance, safety, and reliability. Our focus continues on increasing our manufacturing capacity and enhancing our technology capabilities, and we are constantly exploring new ways to improve, innovate, and push the boundaries of what is possible in the electric mobility industry, setting new benchmarks for the future. Now, I will begin with providing you the key highlights for Q3 consolidated financials. On a consolidated basis, the revenue for Q3 was at INR 515.37 crores, up by 51%. The company's EBITDA for Q3 reached an impressive INR 81.77 crores, marking a substantive growth of 46% compared to the corresponding quarter of previous year.
The PBT stands at INR 61.95 crores, a remarkable 83% increase from the previous fiscal of INR 33.84 crores. The PAT stands at INR 46.62 crores, up by 72% compared to the previous fiscal's INR 27.11 crores. The performance highlights for nine months: the top line was INR 1,352.98 crores, up by 56%. The company's EBITDA in nine months reached an impressive INR 217.97 crores, marking a substantial 53% increase compared to the previous year. The PBT stands at INR 158.63 crores, a remarkable 85% increase from the previous fiscal's INR 85.67 crores.
The PAT stands at INR 118.52 crores, up by 86% compared to the previous fiscal's INR 63.76 crores. On a standalone basis, the revenue for Q3 was at INR 506.83 crores, up by 53%. The company's EBITDA for Q3 stood at INR 78.73 crores, a significant increase of 58% compared to the corresponding quarter of previous year of INR 49.84 crores.
PBT for Q3, on a standalone basis, surged to INR 60.87 crores, a remarkable increase of 103%, compared to the previous year's Q3 of INR 29.92 crores. The PAT stood at INR 46.31 crores, up by a significant jump of 108% compared to the previous fiscal of INR 22.28 crores. And the performance highlights on a standalone basis for nine months: the top line for nine months was INR 1,325.09 crores, up by 59%. The company's EBITDA reached an impressive INR 205.62 crores, marking a substantial 55% increase compared to the previous year's INR 132.64 crores. PBT swelled to INR 153.93 crores, a remarkable 86% increase from the previous fiscal's INR 82.83 crores. The PAT for nine months, on a standalone basis, stands at INR 115.25 crores, up by 86% compared to the previous fiscal's INR 61.96 crores. Thank you, and over to the Axis team for the 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 the touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Bansi Mundra from BSM Investment Advisors. Please go ahead.
Greetings to you for a blockbuster quarter. Thank you for giving me the opportunity, sir, for this phone call. So, sir, basically, I'll divide my questions in just two parts. What target are we seeing in 2025 or 2026 for the top line? And from the Capex done, what revenue are we expecting from that, and what other revenue are we expecting?
I think to answer your first question, for 24-25, we are expecting the target to be around 1,200 numbers. And for 25-26, we have already indicated earlier in the previous call where we are targeting a conservative number of 2,500 numbers. We are actually ramping up the installed capacity to about 5,000 numbers. And by Q4 earnings call, we will have clear clarity on what could be the guidance for the next financial year. As of now, we are indicating about 2,500 numbers. As far as the CapEx is concerned, basically, we have a large order book of about 10,200 plus numbers. To meet this order execution, we have actually put up a new plant where the construction on phase two is progressing at an advanced stage.
Initially, we have a capacity built of about 200 buses per month, where we are targeting to increase to about 400 buses per month. The revenue, so the CapEx, we have actually planned to take a bet of about INR 500 crores to meet the revenues. I hope I have clarified.
Yeah. Thank you so much, sir. Thank you for giving me the opportunity.
Thank you. Next question is from the line of Gaurang from Utility Unified. Please go ahead.
Hi, I'm Amar.
Yes.
Yes.
Please proceed.
Yeah. Congratulations for the Q3 numbers. I have a couple of questions. First, in terms of the order book, you mentioned that the order book is of 10,200 buses orders. So just to understand the value of these buses, I have jotted a few numbers. So basically, from Mumbai BEST buses, we have some 5,000 buses ordered, which are basically 12-meter AC buses, which should be around INR 1.75 crore in cost. Then we have MSRTC order, which is 2,800 electric coach buses. And we have 9-meter MSRTC, which would be around 2,350 number buses. So I've just done some calculation, wherein I've arrived at number in terms of value to be around INR 20,000 crores. So am I right in projecting those numbers?
Mr. Gaurang, actually, I need to clarify. Basically, these numbers, the average sales realization, if you look at the sales mix currently, it's about INR 1.5 crores. If you look at 9-meters, 12-meters, and coach all put together. So when we talk about these kind of large numbers, and the pricing is definitely will be variable. It all depends on factors like what could be the cost. And these orders are going to be executed in the next 24 to 30 months. So in that scenario, based on the cost factor, both we and our customers will mutually agree for a price. As of now, the average price is about 1.5. You can take 1.5 as a ballpark and then add the number.
Yeah. It comes to around INR 15,000-INR 16,000 crores.
Yes.
Thank you for the answer. So my next question is, recently, Chief Minister's Office of Maharashtra had tweeted that there was an MOU of INR 3,000 crores which was signed between Olectra EV and Davos. So my question is, is this related to the battery energy storage system investment which MD sir spoke about a few months back?
Yeah. One second, and Mr. Hanuman will clarify. Hi, Mr. Gaurang.
Yeah. Hello.
As a part of business development, we are exploring the various opportunities. This is just an expression of our interest into that different kind of business, our extension of the electric vehicle-related issue. Maybe appropriate time, once a concrete decision is taken from the board perspective, we'll come back to the shareholders.
Is it vehicle-related, or is it battery storage-related?
Both. It combines.
Okay. Yeah. My last question. What is the current status of the factory? Are the automatic robots in place so that the factory gets totally autonomous?
See, basically, we have placed the orders, and we are expecting the machinery in about next three to four months, about six months' time.
Okay. And.
This one is robotics, and the phase two is with robotics. So it may take about six months' time to get all the machineries in place.
If I may know, which company's robots are we thinking of? Is it ABB?
As of now, actually, we will not be able to deliver it.
FANUC, KUKA, all the major players.
One minute, sir. Just to indicate the vendor names. So we are discussing with all the major robotic players like FANUC, KUKA, and all other top robotic players. I think we have answered your question.
Okay. Yeah. Thank you for answering. Yeah. Wishing you well for the next quarters. Yeah. Thank you.
Thank you. Next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
I'm audible, sir?
Yes, please go ahead.
Yeah. Yeah. Thank you very much for this opportunity. So just wanted to re-clarify. I mean, this year, we are targeting 1,200 buses, right, in terms of delivery, and next year, 2,500 conservatively, right?
Correct. Correct.
What was the number in this Q3?
Q3, we did about 282, and cumulatively, we did about 753.
Cumulatively, we did about 753. So in the last quarter, we are expecting around 450, 450 kind of a number, right?
Yeah. That is the target we are targeting to get reached about 1,200.
Understood. And how should we look at margins? I mean, last two quarters, our margin has been quite stable at 15%, 15.5%. So in the near term, we expect this margin to continue?
In the near term, we expect the same margins, but over a period of time, as I think I've clarified in the past, with certain numbers, in terms of value, we see a significant growth in value. But over a period of time, the margins could be around 12%.
Yeah. That you have mentioned over the longer term, maybe we expect a margin at 12%, right? But in near term, this 15%-15.5% kind of a margin is sustainable.
Correct.
Okay.
It all depends on the product mix.
Okay.
Yeah. Also.
Yeah. Yeah. Fair. And this entire INR 15,000-INR 16,000 crores, we are expecting to execute in the next two-and-a-half years, right?
Right. Correct.
Okay. And so considering this, I mean, your volume target of 2,500 looks conservative, right? I mean, for the next year, ideally, it should be much higher.
As I think I have mentioned to the first investor, so we will have more clarity when we come back for the Q4 earnings call. So as of now, conservatively, we would like to keep the number at 2,500. And once we have more clarity by Q4 earnings call, we will like to give the customers guidance.
Okay. Fair enough. And just one last thing on the debt side. By when we are looking to, I mean, increase the debt of INR 500 crores that you mentioned?
Next maybe four or five months.
So in FY26, right?
Basically, the plant and machinery part where we are yet to incur.
Okay.
Yet to draw down for the plant and machinery.
Correct. Correct. So in four to five months, I mean, ideally in Q1 or Q2 of FY26.
Correct.
Okay. And what is the total Capex amount you mentioned? I missed that number.
The total Capex is estimating around about INR 750 crores, including the land cost.
Okay. Out of this INR 750, we are looking INR 500 crores through debt and remaining INR 250 crores through internal equivalence?
Yeah. Yes. Correct.
Okay. Okay. Okay. Yeah. I think that would be it from my side. Thank you so much. All the very best. Thank you.
Thank you. Thanks a lot.
Thank you. Next question is from the line of Praful Rai from Arjava Partners. Please go ahead.
Sir, hi. I'm Praful. Congrats for a great set of numbers. I have a couple of questions. The first is, see, is there a bottleneck or some kind of a glitch on supply side that we are facing, which is leading to a lower than expected production at our end? We keep hearing all kinds of things. Therefore, I just wanted you to help us with the way we should be thinking about this particular issue. That is one. Second, on the buses, we are selling the buses on a regular basis or rides, whatever. So there is an intermediate vehicle which is financing that. Is there any issue on the financing side of these buses because that becomes heavier than when we supply more of these buses? That is question number two.
And third is, sir, when this increased capacity is going to come in, when will this capacity come in place in terms of when we can start producing buses? These are the three questions I have, sir. Thanks.
The first question, as you're all aware, we are in continuous process of streamlining the production as we are ramping up our operations with the new plant. While our initial guidance was about 1,500 numbers, now we foresee a revised target about 1,200 numbers for this year. This adjustment reflects our commitment to prioritizing the quality and operational efficiency over sheer volume. The production numbers in the past three quarters have set a solid base, and with the upcoming ramp-up of our new state-of-the-art facility, we are well positioned to achieve this revised target. We remain fully committed to scaling even more effectively in the coming quarters and continue to deliver a sustained growth and creating a long-term value for our investors.
As far as the business model, I think you are aware, it's a GCC model, and the various Evey SPVs, Evey Trans SPVs, are incorporated to meet the requirements of various states. So I think in the past also, we have mentioned the latest two big orders of 5,150 buses and 2,400 plus 25,000, about 3,000 buses, as well as 2,100. Almost all these three major orders, these sanctions are in place. A couple of projects, we almost reached the final documentation stage, and the last project, its documentation will be taken up shortly. So the financial closures are in place, so we don't foresee any major challenges as far as the financing is concerned. With regard to capacity, as we have indicated in the past, we have built about 2,500 numbers, about 200 numbers per month, which we are ramping up to about 5,000 numbers in the near future.
Over a period of one year, we want to ramp up to about 10,000 numbers.
Lovely. Sir, one question, probably. See, I just wanted to help us with that. We keep hearing that there's some kind of a supply issue on the battery side of it from China and some stabilization on the chassis manufacturing setup. Can you just help us with this? Because this battery thing, some other companies have also come and talked of. So are we having any such issues, or probably these issues are past and we are able to ramp up now?
We don't have any battery issues. As far as we are concerned, we don't have battery issues. So we are working, as I think you have indicated, we have a strong R&D team. We keep working on introducing new models, and localization is a continuous process. So I think this is very helpful, sir. Thank you. Thanks a lot. Thanks.
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one. Next question is from the line of Samir Deshpande, an individual investor. Please go ahead.
Hello. Congratulations, sir, for good numbers. I would like to know the production capacity currently. You mentioned it's about 2,400 annually, and the Hyderabad plant, in our presentation, it mentions 5,000. So how soon it will be touching 5,000?
Yeah. 5,000 numbers, in about next four to six months' time, we are going to touch.
Four to six months' time. And in the last quarter, I think we had sold 315 buses. And in this quarter, we sold about 282. So actually, current run rate, it seems to be around 300. So we are targeting 1,200 for the current year.
Yes. Correct.
Or do we expect to be better off in the March quarter because of the government budgets, etc.?
Nothing. Actually, there's no such impact on the budget side. So basically, as I mentioned to fellow participants, we are in the continuous process of streamlining the production, and we are ramping up the operations with a new setup. And in Q3, we focused on delivering higher-value CX2 model. And this allowed us to increase our top-line revenue even with slightly lower production volumes. Meanwhile, we have invested time in optimizing our production processes and scaling up our supply chain to ensure smoother execution of larger orders of different models in the near future. So we expect both the production volume and the revenue to grow substantially, ensuring sustained value for all stakeholders.
Okay. And since we are mentioning 1,200 buses for the year, and we have achieved some 750 odd, so as someone mentioned here, the last quarter, the best it can be 450 odd, which will be significantly higher than 280 in this quarter.
See, basically, our target is about 400 EVs in this quarter, 400 plus EVs. We are actually expecting, based on all the parameters, we are expecting to meet this target. But as I said, as of now, this is what we are targeting, and we want to break the Q4 with all the previous quarter numbers, and if we do that, it will be our strongest quarter, so we are targeting to do this. We'll try our best.
Okay. And now that is fine. Now, the product in India, currently, I think there are a few manufacturers along with you. And so which company has the largest market share in terms of the electric vehicle, that is, electric buses supplying to the government? Are we the largest one?
Yes. Yes. See, basically, as I think in my introductory note, I mentioned about our numbers in terms of cumulative supply as well as kilometers. So our buses on Indian roads, we have crossed more than 30 crore kilometers. And by far, this is the highest actually in compared to anybody in the market. And about 2,500 electric vehicles we have supplied to 31st December 2024. In terms of both the supply number as well as the number of kilometers, by far, we are the largest.
Sure. And in the last call, you had mentioned about the AMC, which we receive per e-bus. So what is the revenue that is generated in this quarter or in this financial year compared to the last year?
Compared to last year, our revenue from AMC is about 5% of the total top line. So that means about 1,353 crores, about 5%, about INR 65-70 crores is our AMC income. And compared to last year, it has doubled almost, one and a half times more than last year. As the fleet increases, the AMC revenue from AMC service is likely to go up.
Yes. As our captive total number, it goes up, it will be significantly because 5% is fixed. So as our volumes grow, if it is INR 2,000 crores, it will be INR 100 crores per annum or whatever.
No, it is not 5% fixed. As of now, the AMC income is about 5%. So as we progress, we expect the 5% to improve because the fleet, if it goes above 10,000 numbers, the revenue contribution could be slightly better than 5%. But overall, yes, what you are saying rightly, it could be around 5% on a larger revenue base.
That is a very good steady source of income. And maybe in the next one, two years, it can be a significant income also. And so that, including our operating margin target, continues to be this, or it can be higher.
In absolute terms, it will be higher, definitely. But in percentage terms, over a longer tenure and with larger volumes, we expect that to stabilize around 12%.
Around 12%. But currently, it continues to be 15% plus. And maybe after one, two years, it will come down to because when the volumes go up significantly.
Correct.
Okay. Thank you, sir, and all the best.
Thanks. Thank you.
Thank you. Next question is from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Hi. What is the reason for this drop in the number of buses produced in this quarter? We were expecting a little bit higher number, but surprisingly, we see that the number has dropped from the last quarter.
Mr. Bala Murali, I think this is the same question I've been asked by the other investors as well. I think we have tried to clarify it. Maybe to summarize, as you are aware, we are in continuous process of streamlining the production as we are ramping up the operations in the new plant. And this adjustment reflects our commitment to prioritizing quality and operational efficiency over sheer volume. And the production numbers in the past three quarters have set a solid base. And with the upcoming ramp-up of the new state-of-the-art facility, we are well positioned to achieve this revised target. As well as in the coming future, we continue to deliver sustained growth. That is what our vision and creating a long-term value for our investors.
Okay, sir. So then, regarding the order books, since a long time, we have not won any orders. So we are still sitting with these CESL, BEST, and MSRTC orders only. So from PM-eBus, we could not able to capture any share from the PM-eBus tenders. So what is the pipeline of tenders? As of now, we participated and it's waiting for the awarding of tenders. And what could be the number? Could you please clarify on this?
As you rightly said, currently, we have an order book of 10,200 plus buses. We haven't stopped our participation with new e-bus tenders. We are active. Recently, we have participated in HRTC North Western Karnataka tenders. While our current order book is substantial, the commissioning of the new plant is geared up precisely to ensure we meet the future demand seamlessly. As you rightly said about the PM-eBus, I'd like to ask my colleague to clarify. So as rightly said by Sharat sir, we are under negotiations for the tenders of HRTC as well as NW Karnataka. HRTC about 330 buses, and NW is about 350 buses. We have a good order book of 10,200 buses. In recent PM-eBus, the players are announced as L1, but the rates yet to be finalized, and as well as the LOA yet to be issued.
So in the PMECE, one of the tenders, we are L1, right?
For PMECE, we are not L1. We have separate orders from HRTC and North Western Karnataka. We are there, we are L1, we are negotiating.
Understood, sir. So other than this, these tenders, any other big tender we have participated in under pipeline?
So these are the two of which are in pipeline, and we have significant order books to execute, more than 10,000 numbers.
What is the current month run rate, sir? How much buses produced in this month? So that we are in.
See, basically, month on month is being price sensitive. We are not giving any guidance. Only quarter guidance we have been giving, and then we have given the revised target of about 1,200 numbers in this Q4 over a full year, which includes about 400 plus numbers for Q4.
Okay, fine. But the thing which we are worried is actually some of our competitors are sitting with some higher capacity, and they are able to execute the orders very quickly as they have already 5,000 bus capacity. But being a 10,000 backlog is continuing since a long time as the order execution is on the low stage, and we are not able to add any further orders to the order books. Significant orders, not small 300, 400 would be okay. So this will, at one point of time, maybe will be behind the competitors, it seems like that. What is your take on that?
Basically, we are focusing on our business, and we are seeing sustained growth over the last several quarters, and we continue to strive to have a sustained growth in the near future as well, and as in the initial note, I mentioned about working on new technologies. As far as we are concerned, we are pioneers in bringing new technologies. With the advancement of technologies, we are confident that our product will definitely stand in the market compared to everybody, and as far as, so continuously, we have been growing. So there are, and we are definitely striving to have our business growth in a sustained manner.
Okay, sir. That's all. Thanks for the question.
Thank you. Next question is from the line of Ravindra, an individual investor. Please go ahead. Ravindra, your line is unmuted. Please go ahead with your question.
Hello?
Yes, sir. Please proceed.
Yeah. My question is answered from the previous call. Yeah, that was my question. Thank you.
Thank you. The next question is from the line of Nitin Gandhi from InoQuest Advisors Private Limited. Please go ahead.
Yeah. Thank you for the question. Just would like to understand the AMC. How does it happen? Are you having AMC for all the buses supplied? It starts after how many periods warranty, and do they have the option to take their own management of a vehicle fleet, or everything comes to you for some certain duration? Can you share some thoughts on that? And second question is, this CapEx, which you said, is for increasing to 5,000. That's 400 per month. But you said that overall plan is to reach from 400 to 800. That's almost 10,000 a year. So what will be CapEx for that? Thank you.
Yeah, sure. See, our business model is gross cost contract, wherein as an OEM, our scope is to manufacture and deliver the buses and take care of the after-sales service. So this is how the model is structured. And typically, the project duration is about 12 years. And for the entire 12 years, Olectra is responsible to take care of the maintenance. Based on mutual agreement between the fleet owner and Olectra, we fix the price per kilometer. And based on number of kilometers run, the revenue is recognized. So as far as the warranty is concerned, that is part and parcel of the AMC arrangement, wherein we have back-to-back warranties with our vendors for a specified period and specific kilometers. And as far as the CapEx is concerned, as you rightly said, about the initial capacity of about 400 buses, we will be incurring this CapEx outlay.
And the civil part is taken care of in this outlay. And as far as the balancing equipment is concerned, we expect maybe about INR 100-200 crores to increase to 10,000 numbers.
That's good to hear. But AMC, can you share? Do we have? Because I see so far, we have supplied 2,500 buses by now. Correct? So maybe by this time, even if it's a first year without AMC, I assume that's the minimum duration after which AMC will start. So the next flow should every quarter keep increasing by whatever sales have happened six months or one year back. And that should be the flow to keep adding, right?
Yeah. As the bus fleet increases, the supply increases within the month after the buses are in operation. The AMC income starts based on the actual kilometers run by the fleet, so as the fleet number increases, the AMC income also proportionately increases.
So for 20 years, they will remain aligned with us, and after that, they will have the choice to take somebody else, right? If they told they want somebody independently to accept the AMC business.
Basically, after 12 years, the contract gets extended. We do not actually have any plans beyond the 12-year period as of now.
Yeah. I'm just assuming some hypothesis, so that's why I was trying to put some terminal value for it. Anyway, next two years, maybe some more questions. I'll come back to you.
Thank you.
Thank you. Next question is from the line of Sudhakar Rao from Transparent Securities Private Limited. Please go ahead.
Good evening, everyone.
Sir, your voice is very low. Please use your handset.
Good evening, everyone. Can you hear me?
Yeah.
Yes, please.
Yeah, good evening.
Yeah. I could log in very late, so please bear with me if I'm repeating any of the questions. First of all, congratulations for launching the new bus with blade battery technology. Okay. Now, coming to the numbers for this quarter, I was expecting much better numbers on a sequential basis, but it did not happen. I think many of my previous speakers must also be perturbed by this not ramping up the production on expected lines. Even the last quarter, you had said that we'll be doing at least 1,000 in the second half of the year, but that still seems to be not possible as of now. So that can answer me. The next question is, when will the fully automated robotic plant be ready? Because it is high time.
Even the contract, EPC contract to Megha was given way back in July 2023 with a completion period of targeted 12 months. It should have been over by July 2024. I wonder it's one and a half years, and MEIL is they're masters in executing huge projects, and they're not done for its own subsidiary. Any reason in procurement, your robotic AI-based machinery or any other reason? Please clarify on that.
Yeah. So basically, your first question, we have clarified to, I think, two or three investors. Again, we will clarify. So as you are aware, we are in continuous process of streamlining the production as we are ramping up the operations of the new plant. While initial guidance was about 1,500 EVs for this year, we now foresee a revised target of about 1,200. And this adjustment reflects our commitment to prioritizing quality and operational efficiency over sheer volume. And as you are seeing rapidly, on a sustainable basis, we have been growing, and we would like to keep this sustained growth and creating long-term value for our investors. We are fully committed, and the production numbers for the first three quarters are set at audited basis. And with the upcoming ramp-up, we are well positioned to achieve this revised target.
This quarter, we have invested time in optimizing our production processes and scaling up our supply chain to ensure smoother execution for significantly larger orders in the future. And as far as the plant CapEx is concerned, the civil work, as far as MEIL target is concerned, the civil construction for phase two is in advanced stage. We expect that to be completed in the next three to four months. As far as fully automatic robotic is concerned, it may take about six months' time because we have negotiated with vendors, and then we are in advanced stage of placing the orders. And it will take about six months' time for setting up the plant. Phase one plant is a conventional one. Phase two is with robotics.
What is the capacity of phase one?
It's about 200 numbers per month, about 2,500 numbers. The civil is almost getting ready, and we'll be reaching about 5,000 numbers in the next four to five months' time.
The 200 per month is the same as the old unit at Cherlapally that was shifted? That was also about 1,500, then 1,500, 2,000.
No, it was not for 200 numbers. It was about 1,500.
So this addition of new capacity is in phases or separate lines for each unit? Or how does it take place?
We have actually two body shops, body shop one and body shop two. One of the body shop, we started where we partially commenced the operations in this year. The other body shop is in advanced stage of getting completed.
I wish it was a read-up because already we have huge orders, and competitors are delivering more numbers, and already we have incurred about INR 2 crore of penalties for delay. My worry is will it enter? I hope it won't end up in cancellation or anything like that. Okay. Coming to my other question, the government of Maharashtra has announced that at its Davos meet that it has entered into an MOU with Olectra to invest up to INR 3,000 crore in EV-related projects. Is it the BYD passenger car unit that is being planned?
Sudhakar Ji, this is Hanuman here.
Yeah, tell me.
I think it is nothing to do with the BYD's car facility, and as a part of business, exploring the further opportunities, we registered our expression of interest in the form of a non-binding MOU, which is related to EV business only.
So your answer may be similar to my other question. In the last EGM, our CMD spoke about the company's plans to diversify into battery energy storage systems, BESS. And incidentally, at Davos, MEL has signed an MOU with Telangana government for investing up to INR 3,000 crores for setting up a BESS. Am I correct in guessing that it will be done by Olectra?
I think from the MEL side, what they have signed, actually, I think we have no role, and coming to the second part of your question, as a part of for the BESS, as a part of exploring the business opportunities, we are striving to know. Obviously, we have to know what are the opportunities and financial and operational feasibility. Once we get the clear-cut reports, actually, the board will take final call, and at the appropriate time, we'll come back to the investors.
Okay. Lastly, as you are aware, this is a silver jubilee year for the company. So the best way for you to reward all the long-term shareholders who have been eagerly waiting for your ramping up of production and etc., it would be best to reward them by achieving your full capacity of 10,000 crores, 10,000 buses in this year at least.
Sure. We noted, and as you are aware, we are striving to move forward in that direction only. I hope you understand.
That is the best way forward. Please, if the promoter also listens to the shareholders' hopes, maybe it will be good.
Noted. Noted your good word. Thank you, Ji.
Okay. Thank you so much.
Thank you. Next question is from the line of Gaurang from Utility Unified. Please go ahead.
Yeah. Hi. Recently in Delhi, we launched the BYD blade battery technology. I was listening to the interview of our MD, Sir K. V. Pradeep, wherein he mentioned that the bus can travel approximately 500-700 kilometers. Are we going to use this same technology for electric trucks as well?
As of now, basically, we are in the process of now homologation. It will take about six months' time. Initially, to start with, we will be introducing buses. At appropriate time, once we have more clarity, we will come back to the investors.
Okay. So are we going to use this BYD blade technology in this 10,200 buses order that you mentioned?
We have to basically come back because after we complete our homologation, which may take about six months' time, so it's a business decision which we may have to take.
Okay. And I'm assuming this would be a perfect product fit for FreshBus, who is one of your customers in the intercity business. So have they shown any interest in this particular technology?
We will come back at the appropriate time because a lot of private players, we have been receiving continuous inquiries because of the advancement in technologies and because of the larger number of kilometers which it can run on a single charge. So a lot of inquiries have been received, and we have received. We received a very, very humongous response and inquiries from our visitors. We are confident that this platform will definitely enhance to build our presence in the private segment as you're aiming for.
Yes, yes. It's going to be the USP because I am studying the competitors, and no one has this excellent technology of going so long, like 500-700 km. So I think it's going to be the USP. And the earlier that we get into this, it will be beneficial for us. Yeah. So my last question is with respect to electric tippers. And in the last quarter, I had mentioned about Borivali Thane Tunnel, which is being constructed by Megha Engineering, basically. And I had shared one article where they had said that more than 1,000-1,500 tippers would be required. So have we got in touch with their team in terms of if we can deploy electric trucks for that project?
So as of now, actually, it has not progressed. It's remained status quo. So we keep exploring, and we are doing continuous demos and trials at various project sites. We hope to receive orders in the near six months to one year. And our R&D team has been working on introducing various other products in that segment. At appropriate time, we will come back, and then we will have the traction happen. Because as of now, as you are aware, the city is at nascent stage. So adoption from conventional to EV truck segment is taking more time. So we expect the traction to happen near six months to one year.
Okay. And any order book that we have for electric tippers right now?
Come again?
Do we have any orders for electric tippers in hand?
So as of now, we are receiving a lot of inquiries. We have been doing a lot of trials. As of now, the inquiry to order has to fructify. We are expecting in the next six months' time.
Okay. That is good to know. Thank you so much for answering, and wish you all the best for the last quarter. Yeah. Thank you so much.
Thank you. Next question is from the line of Saji John from Geojit Financial Services Limited. Please go ahead.
Good day, Yusuf, sir, for Q3 numbers. Sir, actually, my question is regarding any order that to participate and you cannot become the L1 bidder?
Mr. John, it is not clear, actually.
Yeah. I'm audible. Hello? Hello?
Slightly better.
Yeah. Sir, my question is regarding any order book, any order that you have participated in and you could not win that order, meaning you cannot become the L1 bidder?
It's a continuous process. So we have been bidding, and see, there are competitors in the market. So wherever we could not get the orders, the others have won the orders. But the opportunity for EV segment is quite enormous, as we have discussed in the past. And we have actually a hedge in terms of technology compared to others. As of now, as our buses have clocked more than 30 crore kilometers on Indian roads.
So if I ask you, sir, on the PM-eBus Sewa services, any order that we have missed?
One minute. I just want to clarify on the PM-eBus Sewa. Sir, as you see, we have been bidding strategically by keeping the good margins in mind for both Olectra as well as for our strategic partner, Evey Trans Private Limited. So we have good orders in place. And as a continuous process, we will be winning few tenders, and we will be L2 or L3 in few tenders. So this particular PM-eBus Sewa, we haven't won any orders. But if you see in the previous orders in BEST or MSRTC, the largest orders we have won. And we are also in L1 for a few other tenders also in market. Yeah. I think I hope I have answered your question.
Okay. Fair enough, sir. So my next question is regarding the order book, the current order book that we have. Around 2023, if I go by the numbers, you have around 8,000 kind of orders that you have total. And you could only execute only around in 12-18 months that you need to execute. So how much is the penalty we have to incur going forward?
I think we have discussed in the past. We have clarified. We'd like to clarify again. So basically, this industry, EV industry is at a nascent stage. And under this GCC model, the scopes and responsibilities are defined, wherein the operating company, which has won the order, has to deliver the buses. And from the STU side, they need to arrange depot space and charging electric power connections. So these are the two scopes of work. And for example, in the case of large order like MSRTC, almost 200 depots are required to be open. So it's a continuous process. They need to allocate space and create the depot space. And accordingly, we will manufacture and supply. And it's mutually beneficial. Yeah. It's mutually beneficial for both the STU as well as us, as it is operationally in terms of revenues. It is highly remunerative for the STUs.
As of now, no penalties have been charged to Olectra.
I mean there is a scope of negotiation is there, right?
Correct. Absolutely.
Yes. Okay. So, on the truck side, sir, you don't have any sale for this quarter, right, sir? On the truck side?
As of now, we have not actually sold any truck tipper this quarter. We expect orders to come in the next six months to one year, as we are doing a lot of trials and demos across various project sites of infrastructure companies, and the inquiries are fructification of inquiry into an order we hope in the next six months to one year.
Okay. So next year is where you will be having more numbers coming into the work, right, sir? The next year, right? But we can hope that you will be delivering on your orders.
Yes. Correct.
Thank you, sir. That's all from my side.
Thank you. Next question is from the line of Varun Gupta an individual investor. Please go ahead.
Hi. Am I audible?
Yes.
Yes. Yes.
So I think congratulations for the great set of numbers. And I think the whole Olectra team has to be appreciated and congratulated because I remember 2020, we did around INR 200 crores of sales or revenue a year. And probably we will touch INR 2,000 crores this year. Hope so. So I think your team should be appreciated for that. So having said that, I have a couple of questions. And I think you already have clarified. But again, this HRTC tender, it is the same tender which we got L1 three, four months back, and still we haven't got the order?
Yes. Yes. Yes. Correct. You are right.
So my question is that how it is working out? Even when we say L1, we are that means lowest bidder on price point. Then they have further negotiation, and they are taking three, four months just to give an order. Is my understanding correct?
Yes. Yes.
Okay. Okay. And it seems that case with your Karnataka tender?
Western Karnataka. North Western Karnataka also, the tender is recently opened. We were L1, and currently, the order is under negotiation.
Perfect. Okay. My last question. See, in this last one year, I don't know if I'm correct or not, but it seems that the government orders, the pace has become slow. If you remember that CESL tender, the big one, I think 3,800 buses, it started last February. We are again on February now from tomorrow. And it has not closed. Any reason government has gone slow? Or how the overall scenario is looking from the government side? And adding to it, how many tenders or how many buses are we like we have already submitted the bids? These are the two questions.
I think as of now, I think if you ask us about 30,000 plus buses orders has been finalized in India and we have won about 12,000 buses till date, out of which we have delivered more than 2,400 buses. And as of now, we have about 10,200 buses ordered. And like you said, the CESL and other orders, which came at later stage, which are various STUs as various OEMs have participated in those tenders. And those tenders are not yet finalized because of multiple reasons. There were no few OEMs are asking for the payment security mechanisms. And few OEMs are within payment security mechanism where government need to confirm the or give a guarantee on the payment. So due to these kind of issues, the finalization of LOAs and signing of agreements were pending.
Got it. So how many tenders we have already submitted the bids? Like if you have a ballpark number, one, two, 10, or the number of buses we have submitted?
Since the inception of the company, the inception of electric buses, it was.
No, no, no. No, no, no. Which we have not submitted, which we have not received, which is under submission and in progress.
Okay. Which is under submission and progress is, like I said, HRTC. Yes, we have submitted, and we are waiting for the final negotiation to happen. And we are L1 in NW Karnataka. And there are other tenders like, and there is a 140-bus tender from Nava Raipur, and there is a tender for 500 buses from IRT. And there is a recently quoted tender from Rajasthan State STU, which is about 200 buses. And there is a tender from UPSRTC, which is NCC. And all the OEMs in the country are asking this to convert to GCC. Yeah. These are the tenders which are.
Ladies and gentlemen, please hold while we reconnect to the management as the line has been disconnected. Thank you. Ladies and gentlemen, thank you for patiently holding. We have the management line reconnected. Over to you, sir. So we have Mr. Varun Gupta waiting for the answer.
Yeah. Yeah, Mr. Varun, we have answered, I think.
Yeah. Yeah. I think you have answered. You have answered the question, and thank you so much. All the best for next quarter, and I hope we touch INR 2,000 crores this year. Thank you so much. All the best.
Thank you a lot. Thanks a lot for your nice words.
Thank you. Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to the management for the closing comments.
We thank all the shareholders who have participated and have been very supportive in your company's growth journey and the patience and the faith reposed in your company. And we expect good growth both in terms of consolidated revenue and profitability in this financial year. Thank you very much.
Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.