Q1 2027 Suyog Telematics Ltd Earnings Call
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Speaker #2: Ladies and gentlemen, on behalf of the Captify Consulting Investor Relations team, I welcome you to the Q1 FY27 post-earnings conference call of Suyog Telematics Ltd. Today on the call, from the management team, we have with us Mr. Shivshankar Lathoode, Managing Director; Mr. Tushar Shah, Business Head – India; Mr. Ajay Sharma, Chief Financial Officer; and Ms. Aarti Shukla, Company Secretary.
Aarti Shukla: Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you to the Q1 FY27 post-earnings conference call of Suyog Telematics Limited. Today on the call from the management team we have with us Mr. Shiv Lature, Managing Director; Mr. Tushar Shah, Business Head, India; Mr. Ajay Sharma, Chief Financial Officer; and Ms. Aarti Shukla, CS. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risks and uncertainties. This is a reminder that this call is being recorded. I would now request the management to detail us about the business and performance highlights for the quarter ended June 2026, the growth perspective, and the vision for the coming year, post which we'll open the Q4 Q&A. Over to the management team, sir.
Speaker #2: As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. This is also a reminder that this call is being recorded.
Speaker #2: I would now request the management to detail for us the business and performance highlights for the quarter ended June 2026, the growth perspective, and the vision for the coming year, after which we will open the Q4 Q&A.
Speaker #2: Over to the management team, Sir.
Speaker #3: Hi everyone. Good afternoon, everyone. I will be starting with the presentation, followed by Q&A. This presentation is about Q1 FY27, which we uploaded just a few hours ago on our website.
Tushar Shah: Hi, everyone. Good afternoon, everyone. I will be starting the presentation followed with Q&A. This presentation is about Q1 FY27, which we uploaded just a few hours back on our website and on our NSE platform. Right now, we will show you the critical slides over here so that we can get more time for Q&A. Right now, again, our share of Airtel revenue share of Airtel has grown by 1%. So now my Airtel revenue is around 48.1%, followed by VIL, which has grown around 2%, it is at 27% now, followed by Jio, 22.6%, and BSNL, 2.3%. As you all know, we operate pan-India across all the states and union territories. We have 6,100 plus sites and 7,400 plus tenancies.
Speaker #3: And on the NSE platform, right now we will show you the critical points here so that we can get more time for Q&A.
Speaker #3: So, right, again, the share of Itel revenue has grown by 1%. So now my Itel revenue is around 48.1%, followed by VI, which has grown around 2%.
Speaker #3: It's at 27% now, followed by Jio at 22.6% and BSL at 2.3%. As you all know, we operate pan-India across all the states and union territories.
Speaker #3: We have 6,100-plus sites and 7,400-plus tenancies. So, the key highlight for this quarter is that we actually started receiving orders in mid-June, somewhere around June 15 or 16, from Ora for India.
Tushar Shah: Key highlight for this quarter is we started actually receiving orders in mid of June, somewhere around 15th, 16 June from Vodafone Idea. We had declared on our exchange also that we got around 600 plus orders from Vodafone. Out of which we converted 95 towers, which is equal to 150 tenancies in the month of June itself. Because this is a quarter-ended statement, we have updated the numbers only up to 30 June. So in those 30 to 15 days time, we were able to convert 95 sites and 150 tenancies, which is one of the biggest achievements, and we are one of the fastest IP1 companies to deliver such numbers to Vodafone Idea. Based on our performance, we are getting now loading from Vodafone Idea on monthly basis.
Speaker #3: We had declared on our exchange also that we got around 600-plus orders from Ora, out of which we converted 95 towers, which is equal to 150 tenancies in the month of June itself, because these are quarter-end statements.
Speaker #3: We have updated numbers only up to 30th June. So, in a span of, say, 30 to 15 days' time, you were able to convert 95 sites and 150 tenancies, which is one of the biggest achievements, and we are one of the fastest IP companies to deliver such numbers to Ora for India.
Speaker #3: Based on our performance, we are now getting loading from Ora for India on a monthly basis. Currently, after converting 150 tenants, we have another 700 tenancies from Ora for which we are working on, and we are trying to convert the maximum in Q2.
Tushar Shah: We currently have After converting 150 tenancies, we have another 700 tenancies from Vodafone on which we are working, and we are trying to convert maximum in Q2. But obviously, there will be some rain impact in this quarter, but we are trying our best to convert maximum sites from 700, which we are having right now in our hand. So if you see as of Q1 exit, we have 6,103 towers with 7,416 tenancies. And most of the tenancies which came in this quarter was our macro site. So our macro site numbers has grown much higher. And we did few kilometers of fiber network in the quarter. I had also earlier mentioned that we are working on a backup for batteries. We are the first IP1 company to launch zinc battery.
Speaker #3: But obviously, there will be some rain, in fact, in this quarter. But we are trying our best to convert the maximum sites from 700, which we are having right now in our hands.
Speaker #3: So if you see, as of Q1 exit, we have 6,103 towers with 7,468 tenancies, and most of the tenancies which came in this quarter were macro sites.
Speaker #3: So, the macro site number has grown much higher. And we did a few kilometers of fiber network in the quarter. So, you know, I had also earlier mentioned that we are working on a backup for batteries, where we are the first IP company to launch zinc batteries.
Speaker #3: So, just to give a brief background: if you are aware, lithium prices for batteries have almost doubled in the last two and a half months.
Tushar Shah: Just to give a brief background, if you are aware, lithium prices of battery has gone almost doubled in last 2 and a half months. The battery which was purchasing at the rate of INR 33,500 per 100 H went up to 40. Current price is INR 48,000. So which is almost 50% increase in last couple of months. China's And entire All lithium batteries are imported from China. All cells are imported from China. China has removed subsidies. Our rupee is falling against dollar. So we are having major impact on lithium battery, which is increasing our cost. So we have fast-tracked our zinc battery. Zinc battery is ready. It is under production right now. And we should get first batch for around 10, 15 sites in by mid of September.
Speaker #3: The battery, which we were purchasing at the rate of ₹33,500 for grid-age, went up to ₹40,000. The current price is ₹48,000, which is almost a 50% increase in the last couple of months.
Speaker #3: And China's and entire all lithium batteries are imported from China. All sales are imported from China. So China's remote subsidies are rupees falling against dollar.
Speaker #3: So we are having a major impact on lithium batteries, which is increasing our cost. So we have fast-tracked our zinc battery. The zinc battery is ready.
Speaker #3: It's under production right now, and we should get the first batch for around 10 to 15 sites in by mid-September. The pricing of the zinc battery is similar to the old pricing of the lithium battery.
Tushar Shah: Price of zinc battery is similar to old prices of lithium battery, and it is 100% made in India, will not have any dependency of import or subsidies from other country. It will ensure our CapEx remains within our budget because zinc battery prices are same as VRLA, or you can say same as the old lithium prices. It is one of the much bigger saving we will have in coming years when we do our CapEx. We will be the first IP1 company to launch zinc battery on our site in month of September. As of now, no one has even started trial, while we are in a phase of launching zinc battery on sites. This will be one of the biggest CapEx saving item for us in current quarter, and it is one of the biggest hit for current quarter.
Speaker #3: And it seems it's 100% made in India. We do not have any dependency on import or subsidies from other countries. So it will ensure the capex remains within our budget because zinc battery prices are the same as we are at, or you can say, same as old lithium prices.
Speaker #3: It's one of the much bigger savings which we will have in the coming years when we do our capex. We would be the first IP1 company to launch a zinc battery on a site in the month of September.
Speaker #3: As of now, nobody has even started the trial. We are in the phase of launching zinc battery on sites. So, this would be one of the biggest capex-saving items for us in the current quarter.
Speaker #3: And it's one of the biggest takes for the current quarter. In terms of the way forward, you guys have seen the results of Orafor and BSL.
Tushar Shah: In terms of way forward, you guys must have seen the results of Vodafone Idea and BSNL. We are focused on Vodafone Idea and BSNL because they are the ones who are giving us new business for next coming few years. Right now, Airtel is not doing any major rollout. Jio is not doing any major rollout. Vodafone Idea has already declared close to 45,000 site rollout planning next 18 to 24 months. They are targeting to do 3,000, 3,500 sites every month, which they have already started, and that is why we are having such a huge rollout from Vodafone Idea.
Speaker #3: We are focused on Orafor and BSL because they are the ones who are giving us new business for the next coming few years.
Speaker #3: Right now, Airtel is not doing any major rollout. Jio is not doing any major rollout. Vodafone has already declared close to 45,000 site rollouts planned for the next 18 to 24 months.
Speaker #3: They are targeting to do three to three and a half thousand sites every month, which they have already started. And that's why we are having such a huge rollout from Ora for India.
Speaker #3: In terms of funding from Ora for India, you are aware that they have already secured ₹6,400 crore of funding, and they are in a very advanced stage with SBI and the consortium to arrange another funding of ₹25,000–₹30,000 crore.
Tushar Shah: In terms of funding from Vodafone Idea, you are aware they have already secured INR 6,400 crores of funding, and they are in a very advanced stage from SBI and Consortium to arrange another funding of INR 25,000, 30,000 crores, which will be happening phase-wide manner. Vodafone Idea is growing very aggressively. We are getting a bulk business from Vodafone Idea, and we are very sure we should be able to do another, we should be able to do 3,000 additional tenants from Vodafone Idea in current financial year. BSNL has a big announcement before few days. They are doing INR 77,000 crore of CapEx with 2 lakh sites. We will convert to 2 lakh sites in next five years.
Speaker #3: This will be happening phase by phase. So Orafor is growing very aggressively. We are getting a bulk of business from Orafor, and we are very sure that we should be able to do another—we should be able to do 3,000 additional tenancies from Orafor India in the current financial year.
Speaker #3: BSL made a big announcement a few days ago. They are investing ₹77,000 crore in capex, with 2 lakh sites, which will increase to 2 lakh sites in the next five years.
Speaker #3: But as of now, I don't really want to go deep into BSL because we all know that BSL will do the declaration. But their rollout will start very slowly.
Tushar Shah: As of now, I do not want to really go deep into BSNL because we all know BSNL will do declaration, but their rollout will start very slow. There are billing issues and everything. We have kept our stand very clear on BSNL. Once they confirm my billing strategy, we will start rollout for BSNL. Obviously, you can expect big numbers from BSNL, but as of now, unless we get some confirmation from BSNL, we are not giving any projections of BSNL right now. Yes, there is a huge workload for IP1 company, close to 2.5 lakh plus 50,000 from other two operators. Close to 3 lakh towers are planned in next five years. There will be no dearth of work for any IP1 company in India.
Speaker #3: Then there will be billing issues and everything. So, we have kept our stand very clear on BSL. Once they confirm to me that my billing has started, we will start the rollout for BSL.
Speaker #3: So obviously, you can expect big numbers from BSL. But as of now, unless we get some confirmation from BSL, we are not giving any projects of BSL right now.
Speaker #3: But yes, there is a huge workload for IP1 company—close to two and a half times plus 50,000 from the other two operators. Close to 3 lakh towers are planned in the next five years.
Speaker #3: So there will be no dearth of work for any IP1 company in India. It's on whoever performs better, whoever has proper funding can do a huge number of rollouts and can double their sites every year.
Tushar Shah: Whoever performs better, whoever the proper funding can do a huge number of rollout and can double their sites every year. Now we are coming to financials. Revenue for Q1, consolidated revenue Q1 FY2026 revenue is INR 710 million. We have maintained an EBITDA of 59.3%. When we say EBITDA now, this EBITDA is a revised EBITDA with EB. As you all are aware from first episode, we have changed the accounting policies, and we have added electricity in our top line. Earlier EBITDA which was seen was around 70% has come down to 59.3% because of addition of electricity in the top line. I will also show you comparison of last quarter and last year in next slide. In terms of PBT, we have INR 195 million. Net profit is again INR 145 million, which we have maintained.
Speaker #3: So now we are coming to financials. Revenue for Q1—consolidated revenue for Q1 FY27—is ₹710 million. We have maintained an EBITDA of 59.3%. So, when we say EBITDA, this EBITDA is a revised EBITDA with TB.
Speaker #3: As you all are aware, from 1st April we have changed the accounting policies and we have added electricity in our top line. So, earlier, EBITDA which was seen was around 70%, has come down to 59.3% because of the addition of electricity in our top line.
Speaker #3: So, I will also show you a comparison of last quarter and last year in the next slide. In terms of PBT, we have ₹195 million. Net profit is, again, ₹145 million.
Speaker #3: Which we have maintained. Obviously, there is not much growth since our orders started coming from mid-June, so all the growth you see will be from the coming quarter. Then next year, when we do a lot of rollout from Q2 onwards.
Tushar Shah: Probably there is not much growth since our orders started coming from mid-June. All the growth you will see from coming quarter then next year when we do lot of rollout from Q2 onwards. We have EPS of 12.67. Revenue per tower we have maintained. Even after a stagnant quarter, we are able to maintain our revenue per tower where again we are above 31,000 which is one of the high revenue. Now this revenue per tower is excluding EB. We are not adding electricity in revenue per tower because otherwise it will be misleading. Revenue per tower has been constant at 31,000, 31,500 for us from last four quarters. This is a comparison. What we have done is we have added electricity charges in FY2026 Q4 and Q1 FY2026. There is an apple-to-apple comparison.
Speaker #3: We have EPS of 12.67. So, revenue per tower we have maintained—even after a stagnant quarter, we are able to maintain our revenue per tower, where again we are above ₹31,000, which is one of the highest revenues.
Speaker #3: Now, this running per tower is excluding EB. We are not adding electricity in revenue per tower because otherwise it would be misleading. So, revenue per tower has been constant at ₹31,000 to ₹31,500 for us for the last four quarters.
Speaker #3: This is a comparison, so what we have done is we have added electricity charges in FY26 Q4 and Q1 FY26. So there is an effort for an apple-to-apple comparison.
Speaker #3: So, you can see revenues have grown by 6.1% in the current quarter, if you see year-on-year. We have reached ₹70.9 crore of revenue compared to ₹68.5 crore in the previous quarter.
Tushar Shah: You can see revenues grown by 6.1% in current quarter. If you see year-on-year, we have reached INR 70.9 crores revenue, compared to INR 68.5 in previous quarter and INR 66.8 same quarter last financial year. Our total expenditure has increased because obviously there was every quarter we have said there was a CapEx and everything. In terms of EBITDA, we have INR 420 million EBITDA, which was INR 418 last financial year and INR 411 before last. Sorry, INR 418 last quarter and INR 411 in last financial year. EBIT again remains strong at 74%. Our PAT is against PBT is INR 195 million, and our net profit margin is constant at 20% with the electricity cost in picture. If you see PAT has been between 20% to 25% constantly in last four years.
Speaker #3: And 66.8 in the same quarter last financial year. Our total expenditure has increased because, obviously, in the April quarter we have said there was an increase, and there was a capex and everything.
Speaker #3: In terms of EBITDA we have 420 million capex which was 418 last financial year. And 411 before last sorry 418 last quarter and 411 in last financial year.
Speaker #3: EBIT again remains strong at 74%. Per pack is again, PBT is ₹195 million. And our net profit margin is constant at 20%, with the electricity cost in picture.
Speaker #3: So if you see, EBITDA has been between 20% to 25% constantly in the last four years. I have already shared with you the change of accounting policy effective from 1st April.
Tushar Shah: I have already shown you change of accounting policy effective from 1 April. Reimbursement has been added to top line. Electricity reimbursement has been added to top line because that was the requirement from GST department. This is a comparison sheet for you guys for apple-to-apple comparison. In terms of management, same FY2025, FY2026. Same as last quarter, there is no change in management. It is same what we have shown you last quarter. That is it from my side. We can now open. Thank you, everyone, and we can now open for Q&A.
Speaker #3: Reimbursement has been added to the top line. Electricity reimbursement has been added to the top line because that was the requirement from the GST department. And this is a comparison sheet for you guys.
Speaker #3: For April-to-April comparison, in item management, same FY25, FY26 things—it was quarter—there is no change in the balance sheet. It’s the same as what we showed you last quarter.
Speaker #3: That's it from my side. We can now open thank you everyone and we can now open for Q&A.
Speaker #1: Thank you, sir. So, all those who wish to ask a question, please use the "raise hand" option. If you are not able to use the "raise hand" option, you can post your question in the Q&A section as well, and we'll ask on your behalf.
Aarti Shukla: Thank you, sir. All those who wish to ask a question, please use the option of raise hand. If you are not able to use the option of raise hand, you can post your question in the Q&A section as well, and we will ask on your behalf. We will take the first question from the line of Mr. Guneet Singh. Guneet, you can unmute and go ahead, please.
Speaker #1: So, we'll take the first question from the line of Mr. Guneesh Singh. Mr. Guneesh, you can unmute and go ahead, please.
Speaker #2: Hello. Am I audible?
Guneet Singh: Hello. Am I audible?
Speaker #3: Yeah Guneesh you are audible.
Tushar Shah: Yeah, voice is audible.
Speaker #2: Yeah. So firstly, I want to understand more about this zinc battery project. Are we doing our own capex? If so, how much? Or is it contract manufacturing from someone else? And what kind of revenue projections do we have from this firm from Q2, Q3, Q4 onwards? What kind of EBITDA margins?
Guneet Singh: Yeah. Firstly, I want to understand more about this zinc battery project. Are we doing our own CapEx? If so, how much? Or is it contract manufacturing from someone else? What kind of revenue projections we have from this from Q2, Q3, Q4 onwards, what kind of EBITDA margins?
Speaker #3: So Guneesh first about zinc battery we are not manufacturing ourselves we are we have done tie up with one of the manufacturer which is GBB batteries who has land in Kerala and we promoter of zinc batteries based from US he is he was one of the ex battery head for Apple so product has come out very good with him and we are going to like we are buying lithium battery somewhat we are going to buy zinc battery from GBB so it's not that we are manufacturing ourselves we are going to just buy from manufacturer but yes we would be a first one in telecom industry to use zinc battery in next month on sites in terms of revenue projects and see I'm sharing you that we are planning to do 3,000 sites for Vodafone India in current financial year you know our average is around 30, 31,000 per tower per month excluding EB so that would be and if you take EB EB would come to average 20, 25,000 per site per month you can calculate top line also it's not right for me to comment on financial numbers because it's a you know it's a listed entity and we cannot guide you a financial number but as you can derive yourself we are planning 30, 3,000 sites for Vodafone India with an average revenue of 31,000 without EB around 50,000 with EB
Tushar Shah: Sunil, first about zinc battery. We are not manufacturing ourselves. We have done tie-up with one of the manufacturer, which is GBB Batteries, who has plant in Kerala. The promoter of zinc battery is based from US. He was one of the ex-battery head for Apple. The product has come out very good with him, and we are going to. Like we are buying lithium battery somewhere, we are going to buy zinc battery from GBB. It is not that we are manufacturing ourselves, we are going to just buy from manufacturer. But yes, we will be a first one in telecom industry to use zinc battery in next month on sites. In terms of revenue projections, see, I am sharing you that we are planning to do 3,000 sites for Vodafone Idea in current financial year.
Tushar Shah: You know our average is around INR 30,000, INR 31,000 per tower per month, excluding EB. If you take EB would come to average INR 20,000, INR 21,000 per site per month. You can calculate top line. Although it is not right for me to comment on financial numbers, because it is a listed entity and we cannot guide our financial number. But as you can derive yourself, we are planning 33,000 sites for Vodafone Idea with an average revenue of INR 31,000 without EB, around INR 50,000 with EB.
Speaker #2: Okay, and what are the benefits of this zinc battery? Will our EBITDA margins improve? Currently, at what price are we buying the battery at?
Guneet Singh: Okay. What are the benefits of this zinc battery? Will our EBITDA margins improve? Currently, what price are we buying the battery at?
Speaker #3: So zinc sir two three major advantage of zinc battery one is in terms of pricing lithium prices has gone very high so for 100H lithium pricing is right now costing 48,000 and which is expecting to rise in future also and zinc battery will cost me around 33,000 for 100H we normally use three batteries on every site 300H then it will vary up to 600H 900H also in terms of efficiency it will give me same benefit of lithium battery where it will be small in size and it it has a fast charging and more backup a major benefit compared to lithium is it's a fire resistant lithium battery still still have a chance of getting called fire zinc battery will not have any fire it's a fire resistant battery and that's it and that's the benefit of lithium battery
Tushar Shah: Zinc, there are two, three major advantage of zinc battery. One is in terms of pricing. Lithium prices have gone very high. For 100H, lithium pricing is right now costing INR 48,000, and which is expecting to rise in future also. Zinc battery will cost me around INR 33,000 for 100H. We normally use three batteries on every site, 300H, then it will vary up to 600H, 900H also. In terms of efficiency, it will give the same benefit of a lithium battery, where it will be small in size and it has a fast charge and more backup. A major benefit compared to lithium is it is a fire resistant. Lithium battery still have a chance of getting caught on fire. Zinc battery will not have any fire. It is a fire-resistant battery, and that is it. That is the benefit of zinc battery.
Speaker #2: So this is for 33,000, and currently, how much are we procuring the battery for?
Guneet Singh: This is for 33,000, and currently how much are we procuring battery for?
Speaker #3: Right now, the latest cost of a lithium battery is ₹48,000 for 100 Ah.
Tushar Shah: Right now the latest cost of lithium battery is INR 48,000 for 100H.
Speaker #2: So basically, this will reduce our capex. Is that correct?
Guneet Singh: Basically this will reduce our CapEx. Is that correct?
Speaker #3: Right. And it will reduce the capex, and we will also do some operations cost. It will also reduce my operation cost. But yes, the major benefit would be on capex.
Tushar Shah: Right. It will reduce the CapEx and will also do some operation cost. It will also reduce my operation cost, but yes, major benefit would be on CapEx.
Speaker #2: Got it. So for this current financial year, we only have about 3,000 extra tenancies from Vodafone, or extra towers.
Guneet Singh: Got it. So for this current financial year, we only have about 3,000 extra tenancies from Vodafone or extra towers.
Speaker #3: So see, it's not from the Vodafone 3,000 as tenancy now. This is what we are targeting right now because Vodafone has, as of now, declared a rollout of 12,000 up to September, and they may add another 18,000.
Tushar Shah: So see, it is not from the Vodafone. 3,000 is tenancy.
Guneet Singh: Okay.
Tushar Shah: This is what we are targeting right now because Vodafone has, as of now, declared a rollout of 12,000 up to September, and they may add another 18,000. So they are planning around close to 30,000 sites in current financial. Out of which we are targeting 10%, which is 3,000 based on our financial capability and the visibility what we see in current financial year. There is much more, many more business. BSNL may come up. We hope that even VIL will open soon after IPO. So opportunities are very huge. But as of now, on conservative basis, we are saying we will do 3,000 sites for Vodafone Idea.
Speaker #3: So, they are planning around close to 30,000 sites in the current financial year, out of which we are targeting 10%, which is 3,000, based on our financial capability and the visibility we are seeing in the current financial year.
Speaker #3: There are much more, many more businesses BSL may come up with. We hope that even Reliance will open soon after the IPO. So opportunities are many, huge, but as of now, on a conservative basis, we are saying we'll do 3,000 sites for Vodafone India.
Speaker #2: Got it. So, in the current quarter, we just added about—you said—150 sites, 150 tenancies.
Guneet Singh: Got it. So in the current quarter, we just added about, you said 150 sites.
Tushar Shah: 150 tenancies.
Speaker #3: Right.
Speaker #2: And for Q, can you give a breakdown for Q2, Q3, and Q4?
Guneet Singh: Can you give a breakdown for Q2, Q3, Q4?
Speaker #3: So, see, right now we are planning. You can take another 3,000; you consider 2,000 extra sites. Q2 would be lower. Q3 and Q4 are always high for me, so exact numbers I can't know, but yes, totally almost 35% to 40% happens in H1, and 60% overall I do in H2.
Tushar Shah: So see, right now we are planning, you can take another 3,000 to consider 2,000 extra sites. Q2 would be lower. Q3, Q4 are always high for me. So exact numbers I can't give, but yes, totally almost 35% to 40% happens in H1 and 60% of the rollout I do in H2.
Speaker #2: Got it. So, out of 3,000, if we say 35% happens in H1, that is about 1,000 to 1,200 tenancies—so in Q1.
Guneet Singh: Got it. So out of 3,000, if we say 35% happens in H1, that is about 1,000 to 1,200 tenancies. So in Q1
Tushar Shah: That is what we are targeting. Only change over here is that our rollout started from June. Let us see how much we can cover up in Q2 because it is also rainy season. We will try our best to achieve the best numbers in Q2. Whatever spillover is there, we can easily get covered in Q3 and Q4.
Speaker #3: So only change is that our rollout started from June, June. So let's see how much we can cover up in Q2, because it's also rainy season.
Speaker #3: So, let's try our best to achieve the best numbers in Q2. Whatever spillover is there, we can easily get it covered in Q3 and Q4.
Speaker #2: Got it. And this 3,000—I mean, these are tenancies, or...?
Guneet Singh: Got it. These 3,000, these are tenancies or
Speaker #3: Tenancies. Tenancies.
Tushar Shah: Tenancies.
Speaker #2: Okay. So out of these 3,000, how many would be on our existing towers, and how many new towers do we plan to?
Guneet Singh: Out of this 3,000, how many would be on our existing towers and how many new towers do we plan to
Speaker #3: That's very difficult to predict because we keep getting loading on a monthly basis. It's not that we get loading for the entire year. So, it depends on Vodafone's planning, but normally it should be an 80/20 ratio, where 80% would be anchor and 20% would be share.
Tushar Shah: That is very difficult to predict because we keep getting loading on monthly basis. It is not that we get loading for entire year. Based on Vodafone planning, normally it should be 80/20 ratio, where 80% would be anchor and 20% would be shared.
Speaker #2: Okay. So, 80% of 3,000 would be new towers that we will erect.
Guneet Singh: Okay. 80% of 3,000 would be new towers that we will erect.
Speaker #3: Yes.
Tushar Shah: Yes.
Speaker #2: Got it. And this 3,000, you're saying it's a conservative figure for this year, right? And we don't already have the letter of intent or orders for these 3,000?
Guneet Singh: Got it. This 3,000, you are saying it is a conservative figure for this year, right?
Tushar Shah: Yes.
Guneet Singh: We do not already have the letter of intent or orders for these 3,000. That is what we are expecting.
Speaker #2: That's what we are expecting.
Speaker #3: We have we have after service agreement with all operators right but they see they're planning happens as per their budget rather so Vodafone has done rollout right now planned ed rollout only for 6,000 crore which they have received from HBI.
Tushar Shah: We have master service agreement with all operators, right? But see, their planning happens as per their projects are there. So Vodafone has done rollout right now, planned rollout only for INR 6,000 crore, which they have received from SBI. So as and when they receive funds, they will start releasing the nominals. They will not release the nominals because even they need to arrange their funds back to back. So right now they have to reach nominals only for around 7,000, 8,000 sites. Approved to 10,000 sites, out of which we are targeting 3,000. So as and when SBI approves their next set of ones or next phase of rollout will start, we will get more sites.
Speaker #3: So as and when they receive funds, they will start releasing the new nominations. There's not recently nominations because even they need to arrange their funds right back to back.
Speaker #3: So right now, they have reached nominals only for around 7,000–8,000 sites, or close to 10,000 sites, out of which we are targeting 3,000.
Speaker #3: So as and when HBI approves their next set of ones or next phase of rollout will start, we'll get more sites.
Speaker #2: Got it, got it. All right. So basically, I mean, the jump in revenue should come only from FY28, considering that.
Guneet Singh: Got it. All right. The jump in revenue should come only from FY28.
Tushar Shah: Yes.
Guneet Singh: Considering that.
Speaker #3: Yes, because that's the time when we'll get a full year car benefit of the revenue of VI sites. So you'll see margin—you'll see a jump even in Q3 and Q4.
Tushar Shah: Because that is the time when we will get a full year benefit of the revenue of VIL sites.
Guneet Singh: Got it.
Tushar Shah: You will see margin, you will see jump even in Q3 and Q4, but full year benefit you will get it in FY28.
Speaker #3: But the full year benefit, we'll get it in FY28.
Speaker #2: Got it. So basically, 30,000 plus 25,000 is 55,000 into around 750.
Guneet Singh: Got it. Basically, 30,000 plus 25,000, 55,000 into around 750.
Speaker #3: 50,000 into the number of sites.
Tushar Shah: 50,000 into the number of sites.
Speaker #2: Yeah, that should be the incremental we should expect Q3 onwards, right? Got it. All right, sir. And in terms of EBITDA margins, will we be maintaining the same, or have we seen any cost escalations?
Guneet Singh: Yeah, that should be the incremental we should expect Q3 onwards, right?
Tushar Shah: Right.
Guneet Singh: Got it. All right, sir. In terms of EBITDA margins, we will be maintaining the same or have we seen any cost escalations or
Speaker #3: No, no. We will have the same EBITDA margin with EP as what we have shown right now, which is around 59%. We'll maintain the same EBITDA margin for the coming quarters also.
Tushar Shah: No, we have the same EBITDA margin which AP has got, we have shown right now, which is around 59%. We are maintaining the same EBITDA margin for coming quarters also.
Speaker #2: All right. Thank you very much आप जो बोल रहे हो EBITDA margin same रहेगा yes no doubt for the longer period EBITDA margin same रहेगा but आज के दिन हमारा एक 10 years का rental agreement करते हैं ठीक है जब अगर आप 10 years का long term का rental agreement करते हो तो as per India's जो first 5 years है उसके अंदर आपका notional loss जो है थोड़ा बड़ा होता है और regular loss जो है आगे next 5 years के अंदर आपका notional profit ज्यादा ठीक है तो उसकी वजह से आपका EBITDA margin थोड़ा shorten होता है like उसी balance sheet के अंदर मेरा impact आया हुआ है थोड़ा notional India's का notional जो loss होता है उसकी वजह से तो ये point आप हमेशा consider करना इसके impact आता है India's के working की वजह से impact आता है आपका EBITDA पे okay sir got it ठीक है sir thank you very much I wish you all the best join my thank you we'll take the next question from the line of Mahesh Talati Mahesh you can unmute and go ahead please yeah hi sir thank you for the opportunity sir ये जो 3,000 towers which we are targeting from VI what is your confidence level that we would be we would be getting these orders and we would be executing the sales this year itself Mahesh talka about 3,000 sites from VI right yes we are very confident we'll achieve it because right now flow is very good we have been getting loading on daily basis numbers are getting added to our KT and based on our performance we had meeting with Jasbir Singh who is their national CTO we met planning team and even Vodafone central team is very happy with our performance so as of now we don't see we don't have any reason to say we'll not achieve yes we are very confident team down the line is actually ready they have been executing site daily even in rainy season we have been doing 100 sites if you can see 150 tenancy in mid June which was rainy from surpass of the India we are very confident we have execution capacity we have enough funds so 3,000 should not be a challenge for us okay and what is the current order book from VI like is it 700 tenancies or 1100 730 should not be actually site should be 700 and more we already done 150 another 700 is my today's KT my KT keeps increasing every day because they keep loading me sites day on day out so as of date when I'm sitting here it's 700 plus other than 150 which I have done earlier okay and sir this BSNL order we have been targeting from past like seven eight months now on now all of a sudden we are saying that we don't want to comment more on the growth perspective BSNL because of the delay can you clarify more on this what's the reason when are we expecting any orders this year or again it's delayed by next one to two years anything on that side as well so Mahesh we are very optimistic about BSNL as a company but when I speak on a public platform where investors are there what happens many time when we we see we also commit basically on the numbers which we receive from operator but when I quote some numbers to you guys and then we are not able to achieve because of operator issue it comes back to us that why you are declaring numbers and you're not achieving BSNL numbers are very high we already have some orders in our hand which we are not executing because of their issues with these Asia's equipment so obviously we are optimistic about BSNL we are expecting some numbers in current year so BSNL is a clear path of two lakhs towering next five years which they have declared on public platform two days back so obviously when a CMD of BSNL declared something it would be after a lot of planning but let it come on ground let them give me a confirmed date by when they want to start the rollout when will my billing start then we'll share numbers with you it's not that we don't want BSNL we are very happy to serve BSNL we are we would we say as aggressive as we have we have for BSNL also once we confirmation from BSNL let them say just equipment issues are resolved and they are ready to launch or ready to launch the new rollout phase okay and so basically this FY27 we will be ending with roughly 10,500 tenancies is that the correct estimate assumption right so we already have 7,000 plus we'll add another 3,000 it will be 10,000 plus tenancy while and what would be the funding requirement for this and how are we funding this sir as of now say we have enough fund from my internal accruals we are not seeing any major fundraiser right now but depends if my I get more orders than expected then we may decide on fundraiser as of now we have not taken any call on it so whenever right time comes we will come back to you if there is any plan on fundraising or anything okay and we are expecting 20% PAT margin to sustain this year right so if you want yes so why why there isn't a call in a PAT margin from 25% to 50% right so when you see year on year there was a VI reversal in last quarter last financial year same quarter we were having a VI reversal of our vendors provision that's why it went to 25% otherwise it will always be around 20 21% with EB okay understood thank you thank you Mahesh we'll take the next question from the line of Devyant Shakur Mr. Devyant you can unmute and go ahead please hello sir sir congratulations on the great set of numbers also I wanted to ask that you know you are talking about 3,000 tenancies how much have we done this quarter and how much are we going to do and how much is the confirmed tenancies that we have so out of 3,000 tenancies we already done 150 in Q1 which I have already shown in my numbers in a presentation side we have done 150 tenancy we are already working on 700 plus tenancy other than 150 so while sitting today on a call I have around close to 850 already in my hand and there is entertainment which are remaining ahead so 3,000 is not a challenging number we should be able to achieve it we have execution capacity we have finances funds in our place and Vodafone the way Vodafone is going aggressively the only challenge is right now Vodafone has got 6,000 400 something crores car from SBI and warrants now they are awaiting another set of finances funds to be released from SBI and consortium so if they are able to secure funding then obviously 3,000 is 100% doable and which is right now very positive because this have been the incentive on a goal right now and he has declared numbers so we don't see any challenging achieving 3,000 going forward so so we are pretty confident that we'll be able to do 3,000 this year yes okay sir and also just want a clarification on that you know what is this 31,000 without EB and 50,000 with EB like sorry if I no no up to 30 up to last financial year our top line was only rent and IP fees we don't used to we never used to add electricity reimbursement in top line but due to change in GST guidelines from Q1 this year we have added electricity reimbursement in our top line so there are a change in accounting policies so when I showing you number of revenue per hour it's without electricity while my books the number which you showed which you see in PNL and balance sheet which is my top line it's with electricity from Q1 onwards okay sir okay and you know we we were like there have been news around that you know Vodafone idea BSNL both are going now aggressive as their secured the funding right so what is the what is the growth outlook that we have and also where are we on the fundraise I think last quarter you talked about that you know we might be needing money right so sir Devyant in terms of funding I already said Vodafone has planned to raise 45,000 crore funding which will roughly convert to 45,000 sites coming 18 months to 24 months they have already said they are targeting 3,000 site every month out of 45,000 crore they have secured 6,400 crore and they are in a final stage with HBank consortium for another set of funds to be released from there so Vodafone is very aggressively they have been giving me sites then they are they are giving all other IP sites and Vodafone is 100% very aggressive rollout and they will achieve their numbers that's what we feel as of now in terms of BSNL we have just seen see they don't need to secure fund their funds come from government government has already allotted enough budget for BSNL in last year budget itself they have declared plan of 77,000 crore capex for coming 5 years which is equal to 2 lakh sites in coming 5 years only challenge we have not as confident as Vodafone because we are yet to see resolution of stages equipment which they are facing issues with the stages equipment due to which their entire rollout has been delayed from past one one and half year once they are able to control or once they are able to resolve stages equipment we are very sure even BSNL will do huge rollout but let's wait and watch till it comes on ground and they start the actual rollout right that was their question right yeah yes sir and sir where are we on the fundraise part so you had mentioned last quarter that you know right there was I just mentioned to you that as of now we are working on 3,000 tenancy where right now for next quarter we have enough funds in our with us to roll out the number of sites which we are targeting but as if I get more order if we are able to crack some things if we are able to get more orders from VI or from BSNL we will decide as of now we have not decided whether we want to go ahead with fundraise or when will we go ahead with fundraise so whenever right time comes we'll surely come back to you guys for fundraise okay sir sir so basically our whole plans depends on how Vodafone idea and BSNL executes their plan if there is something that goes not for them then we might be feeling the pressure too right am I right let's go for any company now because all companies are dependent on their customer whether it's the FMCG product customer don't buy product obviously company will only do products and not be able to sell it right so Vodafone idea BSNL are customer yes we are dependent on our customer for our okay sir thank you thank you so much for answering my question thank you Devyant we'll take the next question from the line of yeah namaskar sir as as I think so Tushar ji or I think Rajesh ji was answering that it is the dependence factor on the customer only that will define how how the company going to going to progress but if if I would ask our managing director and get get a very small understanding sir actually over the last 18 18 months or two two years post our this fundraising exercise which which because of some reasons we could not execute things have just turned turtle down and when things are not at.
Guneet Singh: All right. Thank you very much.
Ajay Sharma: Guneet. I also want to say something.
Guneet Singh: Yes.
Ajay Sharma: You said EBITDA margin will remain the same. Yes, no doubt. For the longer period, EBITDA margin will remain the same. Today 10 years rental agreement. When you make a 10-year long-term rental agreement, as per Indus, in the first five years, your notional loss is a little higher, and your regular loss is higher. In the next five years, your notional profit is higher. Because of that, your EBITDA margin is a little stoutened. My impact has come inside the same balance sheet, a little notional, because of the notional loss of Indus. Always consider this point. Your EBITDA is impacted because of Indus's working.
Guneet Singh: Okay, sir. Got it.
Ajay Sharma: Yeah.
Guneet Singh: Okay, sir. Thank you very much. I wish you all the best. Joyful Q3.
Tushar Shah: Thank you.
Ajay Sharma: Thank you.
Aarti Shukla: Thank you, Guneet. We will take the next question from the line of Mahesh Kalati. Mahesh, you can unmute and go ahead, please.
Mahesh Kalati: Yeah. Hi, sir. Thank you for the opportunity. Sir, these 3,000 towers which we are targeting from VIL, what is your confidence level that we would be getting these orders and we would be executing the same this year itself?
Tushar Shah: Mahesh, you are talking about 3,000 sites from VIL, right?
Mahesh Kalati: Yes.
Tushar Shah: We are very confident we will achieve it because right now flow is very good. We have been getting loading on daily basis. Numbers are getting added to our kitty. Based on our performance, we had a meeting with Jagmeet Singh, who is their National CTO. We met planning team, and even Udaipur central team is very happy with our performance. As of now, we don't have any reason to say we will not achieve. Yes, we are very confident. Team down the line is absolutely ready. They have been executing site delivery in rainy season. We have been doing address site efficiency 150 tenancy in mid-June, which was rainy from some parts of India. We are very confident. We have execution capacity. We have enough funds. 3,000 should not be a challenge for us.
Mahesh Kalati: What is the current order book from VIL? Is it 700 tenancies or 1,100 tenancies?
Tushar Shah: 700 plus. If you look at the exit side, it would be 700 and more. We have already done 150. Another 700 is my today's kitty. My kitty keeps increasing every day because they keep loading me sites day in, day out. As of date when I'm sitting here, it's 700 plus other than 150 which I've done in a year.
Mahesh Kalati: This BSNL order we have been targeting from past like seven, eight months. Now all of a sudden we are saying that we don't want to comment more on the growth perspective BSNL because of the delay. Can you clarify more on this? What's the reason? When are we expecting any orders this year? Or again it's delayed by next one to two years? Anything on that side as well.
Tushar Shah: Mike, we are very optimistic about BSNL as a company. But when I speak on a public platform where investors are there, what happens many times when we. We also comment based on the numbers which we receive from operator. But when I quote some numbers to you guys and then we are not able to achieve because of operator issue, it comes back to us that why you are declaring numbers and you are not achieving. BSNL numbers are very high. We already have some orders in our hand which we are not executing because of their issue with the Sager equipment. Obviously we are optimistic about BSNL. We are expecting some numbers in current year. BSNL has a clear path of 2x coverage next five years which they have declared on public platform two days back.
Tushar Shah: Obviously when a CMD of BSNL declares something it will be after lot of planning. But let it come on ground. Let them give me a confirmed date by when they want to start the rollout, when will my billing start, then we will share numbers with you. It is not that we do not want BSNL. We are very happy to serve BSNL. We say as aggressive as we have to be for BSNL also. Once we get confirmation from BSNL that their Sager equipment issues are resolved and they are ready to launch the new rollout phase.
Mahesh Kalati: Okay, cool. Basically this FY27 will be ending with roughly 10,500 tenancies. Is that the correct estimate assumption?
Tushar Shah: Right. We already have 7,000 plus. We will add another 3,000. It will be 10,000 plus tenancy.
Mahesh Kalati: What would be the funding requirement for this and how are we funding the same?
Tushar Shah: Sir, as of now, we have enough funds from our internal accruals. We are not seeing any major fundraise right now. But depends, if I get more orders than expected, then we may decide on fundraise. As of now, we have not taken any call on it. Whenever right time comes, we will come back to you if there is any plan on fundraising or anything.
Mahesh Kalati: Okay. We are expecting 20% PAT margin to sustain this year, right?
Tushar Shah: Yes.
Mahesh Kalati: The Q1 number.
Tushar Shah: Yes.
Mahesh Kalati: Why there is a fall in PAT margin from 25% to 15%?
Tushar Shah: When you see year on year, there was a VIL reversal in the last quarter. Last financial, same quarter, we were having a VIL reversal of our rent debt provision. That's why it went to 25%. Otherwise, it will always be around 20%, 21% with EBIT.
Mahesh Kalati: Okay, understood. Thank you.
Aarti Shukla: Thank you, Mahesh Kalati. We will take the next question from the line of Divyansh Thakur. Mr. Divyansh Thakur, you can unmute and go ahead, please.
Divyansh Thakur: Hello, sir. Sir, congratulations on the great set of numbers. Also, I wanted to ask that, you are talking about 3,000 tenancies. How much have we done this quarter, and how much are we going to do, and how much is the confirmed tenancies that we have?
Tushar Shah: Out of 3,000 tenancies, we have already done 150 in Q1, which I have already shown in my numbers in our presentation slide. That 150 tenancy. We are already working on 712 tenancy other than 150. While sitting today on a call, I have around close to 850 already in my hand, and there is entire nine months which are remaining ahead. 3,000 is not a challenging number. We should be able to achieve it. We have execution capacity, we have finances, funds in our place, and the way Vodafone is going aggressively. The only challenge is right now Vodafone has got INR 6,400 something crore funds from SBI and warrants. Now they are awaiting another set of finances or funds to be released from SBI and consortium.
Tushar Shah: If they are able to secure funding, then obviously 3,000 is 100% doable, and which is right now very positive because Aditya Birla Group is on a go right now, and he has declared numbers, so we do not see any challenge in achieving 3,000 going forward.
Divyansh Thakur: Sir, so we are pretty confident that we will be able to do-
Tushar Shah: Yes
Divyansh Thakur: 3,000 this year?
Tushar Shah: Yes.
Divyansh Thakur: Okay, sir. Also, just want a clarification on that. What is this 31,000 without EV and 50,000 with EV?
Tushar Shah: No, up to last financial year, our top line was only rent and IP fees. We never used to put electricity reimbursement in top line. Due to change in GST guidelines from Q1 this year, we have added electricity reimbursement in our top line. So there are the change in accounting policies. So when I'm showing you number of revenue per tower, it's without electricity. While my books, the number which you see in P&L and balances, which is my top line, it's with electricity from Q1 onwards.
Divyansh Thakur: Okay, sir. Okay. There have been news around that Vodafone Idea, BSNL both are going now aggressive as they have secured the funding.
Tushar Shah: Right.
Divyansh Thakur: What is the growth outlook that we have, and also where are we on the fundraise? I think last quarter you talked about that, we might be needing money.
Tushar Shah: Right. Divyansh, in terms of funding, I have already said Vodafone has planned to raise INR 45,000 crore funding, which will roughly convert to 45,000 sites coming 18 months to 24 months. They have already said they are targeting 3,000 sites every month. Out of INR 45,000 crore, they have secured INR 6,400 crore, and they are in the final stages with SBI consortium for another set of funds to be released from them. Vodafone is very aggressive. They are giving all other IP sites, and Vodafone is 100% very aggressive. So they will achieve their numbers. That is what we feel as of now. In terms of BSNL, we are just seeing. See, they do not need to secure fund. Their funds come from government. Government has already allocated enough budget for BSNL in last year's budget itself.
Tushar Shah: They have declared plan of INR 77,000 crore CapEx for coming five years, which is equal to 2 lakh sites in coming five years. Only challenge, we are not as confident as Vodafone, because we are yet to see resolution of Tejas equipment, which they are facing issues with Tejas equipment, due to which their entire rollout has been delayed for past one month and half year. Once they are able to resolve Tejas equipment, we are very sure even BSNL will do huge rollout. But let us wait and watch till it comes on ground, and they start the actual rollout. All right, that was your question, right?
Divyansh Thakur: Yes, sir. And sir, where are we on the fundraise part?
Tushar Shah: So-
Divyansh Thakur: You had mentioned last quarter that
Tushar Shah: I just mentioned to you that as of now, we are working on 3,000 tenancy, where right now for next quarter, we have enough funds with us to roll out the number of sites which we are targeting. If I get more orders, if we are able to crack some things, if we are able to get more orders from VIL or from BSNL, we will decide. As of now, we have not decided whether we are going to go ahead with fundraise or when will we go ahead with fundraise. Whenever right time comes, we will surely come back to you guys for fundraise.
Divyansh Thakur: Okay, sir. Sir, basically, our whole plans depend on how Vodafone Idea and BSNL execute their plan. If there is something that goes not for them, then we might be feeling the pressure too. Am I right?
Shiv Lature: That is true for any company. All companies are dependent on their customer, whether it is an FMCG product. If customers do not buy products, obviously company will only do production, not be able to sell it. Vodafone Idea, BSNL are customer. Yes, we are dependent on our customer for our work.
Divyansh Thakur: Okay, sir. Thank you so much for answering my question.
Aarti Shukla: Thank you, Divyansh. We will take the next question from the line of Saket Kapoor. Saket, you may go ahead please.
Saket Kapoor: Namaskar sir. As I think Tushar Shah or Gajraj was answering that it is the dependent factor on the customer only that will define how the company is going to progress. But if I would ask our Managing Director and get a very small understanding, sir. Actually, over the last 18 months or 2 years post this fundraising exercise which because of some reason we could not execute, things have just turned turtle down and things are not at all in terms of growth and reporting increase in growth in revenue as well as profitability. These two aspects of BSNL, the Tejas equipment issue, the Vodafone Idea funding, how are we aligning our business prospects for this current year and what should investors conservatively should also look ahead for this year in terms of profitability?
Saket Kapoor: Suppose these two issues do not play out positively for the company, then what should we penciling in going ahead? How will growth then shape up? What is the plan B? And some understanding because somebody was commenting on a very good quarter, so I could not make sense how I be able to take this quarter as a good quarter. If you could just clear my doubts, sir, it would be very helpful. It will be very helpful.
Shiv Lature: Kapoor sir, first of all मैं हिंदी में बोलूंगा।
Saket Kapoor: मैं भी हिंदी में ही बात करूंगा, sir. क्षमा चाहता हूँ मैंने अंग्रेजी में बात की। बताइए।
Shiv Lature: इसलिए मैं हिंदी में बात करना चाहता हूँ कि आपने बहुत rightly question पूछा है। Last two years से हम लोग जो BSNL पर बात है, I am basically BSNL contractor and all these things what happened अगर आप देखेंगे market में जो भी लोग BSNL का काम ले चुके थे, उनका bank balance और everything has gone in loss.
Shiv Lature: हम लोग बड़ा cautiously BSNL को watch कर रहे थे। पहले BSNL का plan था कि हम rural में करेंगे। बाद में उनका plan shift होकर Bombay, Delhi, MTNL में आ गया, जिसमें हमने near about 100 sites दोनों जगह और target करके उसको achieve किया। रहा सवाल sir इसका जो growth है जैसे कि 2G, 3G, 4G and 5G का जो travel चल रहा है, वो travel में 3G totally बंद हो गया और 4G चालू हो गया और 2G का अभी भी customer available है। मैं यह बोलना चाहता हूँ कि company का prospective not only Vodafone, BSNL और Jio भी साथ-साथ में आया है। Airtel का rollout भी कम ना और ज्यादा आपने अगर Sunil Mittal साहब का last quarter में उनका pricing अगर देखा होगा तो बढ़ गया था। कल Vodafone ने dividend भी declare किया था। तो market में जब ये operator लोग अपना costing या investment निकालने के लिए उनके पास एक source है कि जो pricing बढ़ाकर वो लोग अपना telecom का investment recover कर सकते हैं। Second point, हम लोग बड़े clear हैं BSNL और Vodafone के लिए। और BSNL को हमने थोड़ी देर के लिए stop इसलिए किया जब भी Tushar बता रहा था आपको कि हम BSNL का जब तक they confirm उनका CMD level या जो भी meetings हैं उनके funds allocation के बाद, उनके बाद उनका rollout चालू हो जाएगा। तो उन्होंने next five साल में हम लोग 1 लाख sites करेंगे, ऐसा announcement किया है। coming to the real point is that हमारे पास आज की date में जो order है, वो पूरा के पूरा VIL का order है। और VIL के order में हम लोग पूरा confident हैं क्योंकि उनके हम preferred partner हैं, MSA हैं और वो लोग हमको locking भी 10 साल का दे रहे हैं। जो fundraising और ये issue है, जब तक हमारे खुद के पैसे second quarter या third quarter तक huge number नहीं आता है, तब तक हम fundraising को जाना नहीं चाहते। क्योंकि bank fund is also available because every month we are also repaying the bank fund.
Shiv Lature: हमारा clear and clear vision और focus ये है कि VIL का 3000 sites करके एक बार हमारा 10,000 का number achieve हो जाए और ₹100 CR का जो हमारा profit touch करने का target है year wise.
Shiv Lature: तो quarter wise हम लोग अगर ₹100 करोड़ का चलेंगे तो ₹400 करोड़ का net profit मतलब top line होगा। और bottom line हम सोच रहे हैं कि 22 से ही 24 के आसपास ऐसा grow करके जो 15 अभी available है, उसको 4,000-5,000 sites अगर हम अगले तीन quarter में जोड़ सकते हैं, तो we are quite confident about that कि ये number हमारे को achievable लग रहा है। और fundraising का जो issue है, अगर bulk order BSNL या और किसी से आता है, suppose Vodafone ने ही बोला कि नहीं, Suyog आपको हम और दो state add करना चाहते हैं like MP है, जहां पर हमने हमारा presence नहीं रखा है। हमारे को फिलहाल पांच state पर हमने focus किया हुआ है Kolkata, Maharashtra, Mumbai, Delhi और UP.
Shiv Lature: ये पांच state के बाद भी दो state वो Bihar और MP अगर हमको add कर देते हैं तो 5000 का number हम focus करेंगे तो achievable 3000 हो जाएगा। This is our clear cut strategy.
Saket Kapoor: Sir, इसमें एक point मुझे just पूछना था आपसे। जैसे आपने कहा कि आप ₹100 करोड़ का revenue quarterly target करते हैं। हाँ sir.
Shiv Lature: Revenue का target.
Saket Kapoor: हाँ, वही revenue का target करते हैं और आप पूरे वित्तीय वर्ष में ₹400 करोड़ उसके हिसाब से annualize करना चाहते हैं। तो अभी जैसे ₹71 करोड़ का number आया है, इसमें शायद अभी हमारा electricity का भी कुछ reimbursement को भी हमने डाला है। वह percentage भी अगर अजय जी बताएंगे कि कितना % था और likewise फिर क्या comparison होगा। तो यह ₹100 करोड़ का number आप कब expect करते हैं, कि किस quarter से हम इसमें यह देख सकते हैं हमारे-
Shiv Lature: Q4 से हम लोग देख सकते हैं इसको।
Saket Kapoor: Q4 से देख सकते हैं। और sir, आपने कोई dividend के विषय में बताया था। किस company ने dividend, आप किसके विषय में बोल रहे थे कि dividend declare किया है? मैं आपका point miss कर गया।
Shiv Lature: Sir, हमने dividend इस company में भी देने को AGM में बोले। Vodafone का जो dividend आया था sir INR 14. Vodafone company ने dividend declare किया।
Saket Kapoor: Vodafone तो sir loss making है। उन्होंने dividend-
Shiv Lature: दिया है। Saturday मुझे news आया था। हमारे एक investor ने call किया था। Indus ने दिया।
Saket Kapoor: Indus ने दिया। ठीक है साहब, मैं वापस queue में आता हूँ। Sir, as a investor तो हमें निराशा ही face करनी पड़ रही है अभी भी। हम तो दो साल से invested हैं company में।
Shiv Lature: निराशा का कोई सवाल ही नहीं है sir। आपने जो 18 महीने का standstill है, अगर मैं wrongly agreement करके आपको number दिखाने के लिए करूंगा, तो company का BSNL का payment का भी issues है। तो वही cash flow में हमको तकलीफ होगा sir।
Saket Kapoor: नहीं sir.
Shiv Lature: आगे jump मारने के लिए पीछे दो कदम आना पड़ेगा sir मुझे।
Saket Kapoor: आना पड़ेगा। Sir, एक ही point है, मुझे clear कीजिए। मैं समय और नहीं लूंगा, कि BSNL as a relevant player कितना बच गया है sir। अभी जो pricing पर Jio, Airtel और अब तो Vodafone का भी जो revival बन रहा है, actual में sir Pan India basis पर यह BSNL और MTNL की relevancy कितनी बच गई है? क्योंकि जैसे मैं state of West Bengal से बात कर रहा हूँ। यहाँ पर भी BSNL का इतना ऐसा कोई, मैं सुनता नहीं हूँ लोगों के पास BSNL का connection हो। तो आपका पूरा निर्भरता ही BSNL के ऊपर ज्यादा एक higher degree पर है।
Shiv Lature: कपूर साहब, मेरे मन का question आपने पूछा। पता नहीं, आपका मेरा wavelength बहुत जम रहा है। क्योंकि मैं भी यह बोलता हूँ, मेरे को BSNL का customer क्यों नहीं दिख रहा है। तो simple logic इसका है कि government जो है ना sir, profit के लिए company नहीं बना है। BSNL जब से बना है sir, पूरा government के funding पर चल रहा है। तो उनके officer लोगों को profitability बनाने का कोई दिमाग में आता नहीं है। Last year minister साहब ने announcement किया कि हम rural में करेंगे और बाद में divert हो गए urban में। Mumbai और Delhi MTNL के पास आ गए। तो हो सकता है sir उनका pricing cheap रहेगा। अभी आपको simple example देना चाहता हूँ। ST Mahamandal और luxury.
Shiv Lature: Luxury आप बोले तो Vodafone, Idea और Jio है। और rural का जो network bus का है, वह local transport है, वह government चलाता है। अब उसमें profit कब आएगा, इस सवाल का जवाब देना थोड़ा Kapoor साहब मुश्किल है। I think they are running their show. That's all.
Saket Kapoor: जी sir. ठीक है sir। मैं और wait करता हूँ sir आने वाले समय के लिए। जैसा आप कह रहे हैं, उसके अनुसार देखते हैं sir आपकी performance. Thank you.
Aarti Shukla: Thank you, Saket. We will take the next question from the line of Surbhi Mishra. Surbhi, you can unmute and go ahead please.
Surbhi Mishra: Hi, am I audible?
Shiv Lature: Yes, we hear you. Go ahead.
Surbhi Mishra: Sir, I wanted to ask you, your tenancy ratio is still around 1.2x. What will take this from moving forward 1.5x to 2x over the next three to four years. I also wanted to know if we can increase tenancy on existing asset base without proportional CapEx, how much incremental EBITDA can the existing tower portfolio generate?
Shiv Lature: Surbhi, first thing on an overall portfolio basis, my tenancy is around 1.2. We are not tying to, we are targeting to reach 1.8 in coming three quarters, which should be a very decent ratio in industry. To reach 1.8, see whenever we do more of a macro site rollout, there are very high chances of coming two or three tenancy. While HP and Jio small cell site will always have 1.1.2 का tenancy. As the trend is going, operators are more keen on doing micro site rollout. If you see out of 150 tenancy which I did, all were micro site. If you say I have done 95 towers, but I have done 150 tenancy, which is a very good ratio of 1.8, the Q1 rollout.
Shiv Lature: Yes, we are very confident by end of FY28 or early FY29 we should be able to achieve the ratio of 1.8 in the sharing. Because more or less I am doing more of a macro site rollout. In terms of say I can rather than putting EBITDA number, I will just say what are my ROI. When I do a site with single tenancy, I get recovery in span of four years. But when it comes to the two tenancy, it goes down to 24 months and three tenancy goes down to 18 months. Yes, there is a drastic improvement in PAT also when I do more of a sharing site. Yes, there will be jumping PAT percentage, EBITDA percentage when we do more of a sharing tenancy. We should be able to achieve 1.8 in FY29 early quarters.
Surbhi Mishra: Also, I wanted to know, you have referred to a 15 year Vodafone MSA. Does that actually generate a minimum revenue or does it simply provide a framework under which Vodafone may place orders?
Shiv Lature: All the MSAs of all the operators are the framework and a fixed commercial. I took basically MSA says this is a framework and these are the charges what you can charge me.
Tushar Shah: For X type of sites. Under MSA, they will keep loading the site on daily basis across India. It will be all operator, whether it's BSNL, Airtel, Jio. No MSA has a closed time, like, "I will give you only 1,000 or 2,000." It's a blanket MSA. You can do any number of sites what you are capable of.
Surbhi Mishra: And one more question. After the planned Vodafone expansion, what percentage of revenue will Vodafone contribute?
Tushar Shah: Right now we are seeing, we want to take Vodafone to 30% to 32%. We are in around 32% of revenue from Vodafone. Once we are able to do the 3,000 or more sites from Vodafone.
Surbhi Mishra: Okay, thank you so much.
Tushar Shah: Thank you.
Aarti Shukla: Thank you. We will take the next question from the line of Rakesh Mehta. Rakesh, you can unmute and go ahead, please.
Rakesh Mehta: Am I audible?
Tushar Shah: Yeah, you are audible.
Rakesh Mehta: Yeah. The company has increasing highlighted fiber and a fiber per strategy. What percentage of FY27 revenue will come from fiber and what EBITDA margin does fiber generate versus towers?
Tushar Shah: Rakesh, basically, EBITDA margin, since it is an IP1 model, we have a similar EBITDA margin. Not with the EB. The EBITDA margin which was there without EB, which was around 30%, we still generate the same EBITDA margin for fiber. In terms of revenue, it will be very marginal. See, right now we are focused on more of an micro site and more and more sites are coming to rural villages, where they go on a microwave rather than fiber. Vodafone don't have a very strong fiber network on ground like Jio and Airtel, so most of the sites are coming on microwave. As of now, we don't see any major jump in fiber percentage, which will be close to 5% to 8% of my total revenue. It will remain same as it is.
Tushar Shah: Yes, jump would come in coming year when we do more of an FTTH, when we do more of an fiber for all operators. But in current FY27, there will be no major jump in terms of percentage from fiber revenue.
Rakesh Mehta: Is fiber an asset-heavy recurring revenue business like towers, or it is a predominantly CapEx-led revenue?
Tushar Shah: Yeah. Fiber is model. I put my own fiber, I put inverse CapEx in fiber, and we get recurring revenue from operator. My 100% of revenue is recurring revenue on IP1 model.
Rakesh Mehta: Okay, thank you, sir.
Tushar Shah: Okay.
Aarti Shukla: Thank you. We will take the next question from the line of Varun Kia. Varun, you can unmute and go ahead, please.
Varun Kia: Hey, sir. My question is regarding the Vodafone towers. In last quarter, you mentioned that we will achieve 12,000 tenancies by the end of the year. Now you mentioned that its target is around 10,500. So what has changed? Vodafone is also, the process is in delay or why have you cut the additional 1,000, 1,500 tenancies in a quarter?
Tushar Shah: Varun, I have said that 3,000 number is on conservative basis. If you see what I have said, this is on conservative basis, on the basis of INR 6,400 crore, which Vodafone has secured from SBI out of INR 45,000 crore which they have. As and when Vodafone comes with the clarity of rollout, we will keep adding numbers to our target. Right now, what we are committing is based on the 12,000 sites which Vodafone is going to roll out by September, October. Once Vodafone declares confirmed rollout of 30,000 sites, once they get additional commitment from SBI, we will increase our target.
Varun Kia: When do you expect that to happen?
Tushar Shah: I think before few days, Vijay Kishora himself stated that they are on final stages, and they are expecting additional confirmation from SBI in coming few months. Whatever they say, what you hear, I hear the same thing from them.
Varun Kia: Okay. All additional towers, we see the average rental to be around INR 31,000.
Tushar Shah: So 31,000 is rental per AP, yes. It will be same. Revenue per tower would be around 31,000.
Varun Kia: And PAT margins, we expect around 20% to stay at these levels?
Tushar Shah: Yes, 20%.
Varun Kia: Okay, sir. Thank you.
Aarti Shukla: Thank you. All those who wish to ask a question may use the option of raise hand, or alternatively can post the question in the chat box as well. We will take the next question from the line of Anubhav Jain. Anubhav, you can unmute and go ahead, please.
Anubhav Jain: Hello, sir. Am I audible?
Tushar Shah: Yeah, you are audible.
Anubhav Jain: Yeah. Sir, my question is that, what is the current status of the 189 BSNL sites whose billing was pending as of the last call, and have they started contributing to the revenue?
Tushar Shah: Anubhav, right. If you see when we started BSNL project 1 and a half year back, it was around close to 1,000 plus sites which were pending for billing. Right now, it is 186. In this quarter, they have not added anything because they are busy resolving their agency issue. Yes, 186 sites billing is still pending, which we are expecting now. The news which we got before few days is that more or less their agency issues are in control and should be resolved soon. We can see in Q2, we should be able to start revenue for 186 sites.
Rakesh Mehta: Understood. Beyond FY27, once the bulk order of Vodafone 45,000 sites program is allocated across IPs, what is the realistic annual new tower addition run rates Suyog can sustain? How are you positioning for next wave of 5G
Anubhav Jain: Private networks and rural roads.
Shiv Lature: Samugong, can you repeat? I missed a little what you said.
Anubhav Jain: Okay, sir, I will repeat it. Looking beyond FY2027, once the bulk of the rollout, 45,000 site program is allocated across IPs, what is the realistic annual new tower addition run rate Suyog can sustain, and how are you positioning for the next wave?
Shiv Lature: If we go above FY2026, FY2028, we are adding another 5,000 sites from Murapco. Out of 45,000 sites, we are saying we will do around 8,000 to 10,000 tenancies from Murapco in 2 financial years. This year we are targeting 3,000. Next year we are targeting 5,000 from Murapco, based on our visibility, finances, and everything. About site, at no point, saying some numbers after FY2020 because telecom industry is very dynamic. It keeps changing their plans every now and then. Right now, we have visibility of 3,000 plus 5,000 sites from Murap.
Anubhav Jain: Okay, sir. Thank you, sir.
Aarti Shukla: Thank you. I think that was the last question for the day. Sir, would the management like to give any closing comment before we end this conference call?
Shiv Lature: Yeah. Thank you very much to all our attending investor conference. We are very confident about our work. The rollout in the last 10 years, we have achieved 7,000 towers and another 3,000 towers. We are in a well situation and well-equipped with all our staff members. We only assure the market that we will sustain the growth. What last two years stagnant is there, we will grow fast from this year. Thank you very much.
Aarti Shukla: Thank you, sir. This brings us to the end of this conference call. I thank the management for giving us their valuable time and also the participants who joined in. Thank you everyone, and this brings us to the end of this conference call. Thank you. You all can disconnect now.
Shiv Lature: Thank you. Thank you, everyone. Last question.
Operator: Goodbye
