Q1 2027 Suyog Telematics Ltd Earnings Call

August 12, 2026

Speaker #1: So, I think we'll start. We'll just start the recording.

Aarti Shukla: I think we will start. We will just start the recording.

Speaker #2: This meeting is being recorded.

Operator: This meeting is being recorded.

Speaker #1: 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 Shankar 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 will open the queue for Q&A. Over to the management team, sir.

Aarti Shukla: Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you to the Q1 FY 2027 post-earnings conference call of Suyog Telematics Limited. Today on the call from the management team we have with us Mr. Shivshankar 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 will open the queue for Q&A. Over to the management team, sir.

Speaker #1: 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 #1: 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 Q&A for Q4.

Speaker #1: 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. Again, our share of Airtel revenue share of Airtel has grown by 1%. So now my Airtel revenue is around 48.1%, followed by Vi, 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. Key highlight for this quarter is we started actually receiving orders in mid of June, somewhere around 15, 16 June from Vodafone Idea.

Tushar Shah: Hi, everyone. Good afternoon, everyone. I will be starting the presentation, followed with Q&A. This presentation is about Q1 FY 2027, 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. Again, our share of Airtel revenue share of Airtel has grown by 1%. So now my Airtel revenue is around 48.1%, followed by Vi, 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. Key highlight for this quarter is we started actually receiving orders in mid of June, somewhere around 15, 16 June from Vodafone Idea.

Speaker #3: And on an NSA platform, right now we have shown the critical, right, so yeah, so that we can get more time for Q&A.

Speaker #3: So right, again, our 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 the 15th or 16th of June, from Ora for India.

Tushar Shah: 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 numbers only up to 30 June. So in span of say 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 IP-1 company to deliver such numbers to Vodafone Idea. Based on our performance, we are getting now loading from Vodafone Idea on monthly basis. 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.

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 deal statements.

Speaker #3: We have updated our work only up to 30th June. So, in a span of, say, 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 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. We currently have, after converting, 150 tenancies; we have another 700 tenancies from Ora for which we are working, and we are trying to convert the maximum in Q2.

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 the 700, which we are having right now in our hand.

Tushar Shah: 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 7,406 tenancies. And most of the tenancies which came in this quarter was a macro site. So macro site numbers has grown much higher. And we did few kilometers of fiber network in the quarter. So, I had also earlier mentioned that we are working on a backup for batteries where we are the first IP-1 company to launch zinc battery. So just to give a brief background, if you are aware, lithium prices of battery has grown, almost doubled in last 2 and a half months.

Speaker #3: So, if you see, as of Q1 exit, we have 606,103 towers, with 7,004 state tenancies. Most of the tenancies which came in this quarter were on our macro sites.

Speaker #3: So our 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 when we are first IP coming to launch zinc battery.

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.

Speaker #3: The battery, which we were purchasing at the rate of ₹33,500 for grid edge, went up to ₹40,000. The current price is ₹48,000, which is almost a 50% increase in the last couple of months.

Tushar Shah: The battery which was purchasing at the rate of INR 33,500 for 100 AH went up to 40. Current price is INR 48,000. So, which is almost 50% increase in the last couple of months. And China's, and all lithium batteries are imported from China. All cells are imported from China. So 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's under production right now, and we should get first batch for around 10, 15 sites by mid of September. And pricing of zinc battery is similar to old pricing of lithium battery. And since it's 100% made in India, we not have any dependency of import or subsidies from other country.

Speaker #3: And all lithium batteries are imported from China. All cells are imported from China. So, China's remote subsidies are there, and the rupee is falling against the dollar.

Speaker #3: So, we are having a major impact on lithium battery, which is increasing our cost. So we have fast-tracked our zinc battery. 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. And pricing of the zinc battery is similar to the old pricing of the lithium battery.

Speaker #3: And it seems it's 100% made in India. We do not have any dependency on imports or subsidies from other countries. So it will ensure that CapEx remains within our budget, because zinc battery prices are the same as what we are at, or you can say, same as old lithium prices.

Tushar Shah: So it will ensure that our CapEx remains within our budget because zinc battery prices are same as VRLA, or you can say same as old lithium prices. It's one of the much bigger saving which we'll have in coming year when we do our CapEx. We will be the first IP-1 company to launch zinc battery on our site in the month of September. As of now, no one has even started trials, while we are in a phase of launching zinc battery on sites. So this will be one of the biggest CapEx saving item for us in current quarter, and it's one of the biggest take for current quarter. In terms of way forward, you guys must see the results of Vodafone and BSNL. We are focused on Vodafone and BSNL because they are the ones who are giving us new business for next coming few years.

Speaker #3: It's one of the much bigger savings which we will have in 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 trials. While we are in the phase of launching zinc battery on sites, this will 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.

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.

Tushar Shah: 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 in next 18 to 24 months. They are targeting to do 3,500 sites every month, which they have already started. That is why we are having such a huge rollout for Vodafone Idea. In terms of funding from Vodafone Idea, you are aware that they have already secured INR 6,400 crores of funding. They are in a very advanced stage from SBI and consortium to arrange another funding of INR 25,000 to 30,000 crores, which will be happening phase by manner. Vodafone is moving very aggressively.

Speaker #3: Right now, Itel is not doing any major rollout. Jio is not doing any major rollout. Orafor has already declared close to 45,000 site rollout planning over the next 18 to 24 months.

Speaker #3: They are targeting to do 3,000 to 3,500 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 COSDATM for another funding of ₹25,000 to ₹30,000 crore.

Speaker #3: This will be happening phase by phase. So, Orafor is growing very aggressively. We are getting a lot of business from Orafor, and we are very sure 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.

Tushar Shah: We are getting a bulk business from Vodafone. We are very sure we should be able to do 3,000 additional tenancies from Vodafone Idea in current financial year. BSNL has done a big announcement a few days ago. They are doing INR 77,000 crore CapEx with 2 lakh sites, which will convert to 2 lakh sites in next five years. As of now, I do not want to really go deep into BSNL because we all know that BSNL will do declaration, but their rollout will start very slow. Then there are the billing issues and everything. We have kept our stand very clear on BSNL. Once they confirm me my billing started, we will start rollout for BSNL.

Speaker #3: BSL has made a big announcement a few days ago. They are planning ₹77,000 crore of CapEx, with 2 lakh sites, which will increase to 2 lakh sites in the next 5 years.

Speaker #3: But as of now, I don't want to really go deep into BSL, because we all know that BSL will do declaration, but their rollout will start very slow.

Speaker #3: Then there will be a billing issue 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 on BSL right now.

Tushar Shah: Obviously, you can expect big numbers from BSNL. 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 IP-1 company, close to Vodafone 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 IP-1 company in India. Whoever performs better, whoever the proper funding can do a huge number of rollouts and can double their sites every year. Yes. Now we are coming to financials. Revenue for Q1, consolidated revenue Q1 FY26 revenue, $710 million. We have maintained an EBITDA of 59.3%. When we see EBITDA, now this EBITDA is a revised EBITDA with EB.

Tushar Shah: Obviously, you can expect big numbers from BSNL. 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 IP-1 company, close to Vodafone 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 IP-1 company in India. Whoever performs better, whoever the proper funding can do a huge number of rollouts and can double their sites every year. Yes. Now we are coming to financials. Revenue for Q1, consolidated revenue Q1 FY 2026 revenue, $710 million. We have maintained an EBITDA of 59.3%. When we see EBITDA, now this EBITDA is a revised EBITDA with EB.

Speaker #3: But yes, there is a huge workload for IP1 company, close to 2.5 lakh, plus 50,000 from the other two operators. Close to 3 lakh towers are planned in the next 5 years.

Speaker #3: So there will be no dearth of work for any IP1 company in India. It's whoever performs better, whoever has the proper funding, can do a huge number of rollouts and can double their sites every year.

Speaker #3: Yes, so now we are coming to finances. Consolidated revenue for Q1 FY27 is ₹710 million. We have maintained an EBITDA margin of 59.3%.

Speaker #3: So when we say EBITDA, now this EBITDA is a revised EBITDA with EB. As you all are aware, from 1st April we have changed the accounting policies, and we have added electricity in our top line.

Tushar Shah: As you all are aware, from 1 April, we have changed the accounting policies. 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 the last quarter and last year in next slide. In terms of PBT, we have $195 million. Net profit is again $145 million, which we have maintained. Obviously, there is not much growth since our orders started coming from mid-June. All the growth you see from coming quarter then next year when we do a lot of rollout from Q2 onwards. We have EPS of $12.67. Revenue per tower we have maintained.

Speaker #3: So earlier, EBITDA, which was seen at around 70%, has come down to 59.3% because of the addition of electricity in our top line. I will also show you a comparison of last quarter and last year in the next slide.

Speaker #3: In terms of EBIT, we have ₹195 million. Net profit is, again, ₹145 million, which we have maintained. Obviously, there is not much growth since our orders started coming from mid-June.

Speaker #3: So all the growth you'll see from the coming quarters and next year will be when we do a lot of rollout from Q2 onwards. We have EPS of 12.67.

Speaker #3: So, revenue per tower—we have maintained that 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.

Tushar Shah: Even after a stagnant quarter, we are able to maintain our revenue per tower, where again we are above INR 31,000, which is one of the high revenue. This revenue per tower is excluding EB. We are not adding electricity in revenue per tower because otherwise it will be misleading. So revenue per tower has been constant at INR 31,000, INR 31,500 for us from last four quarters. This is a comparison. So what we have done is we have added electricity charges in FY26, Q4 and Q1 FY26. That is an apple-to-apple comparison. So you can see revenues grown by 6.1% in current quarter. If you see year-over-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 an April quarter we have scheduled, there was those CapEx and everything.

Tushar Shah: Even after a stagnant quarter, we are able to maintain our revenue per tower, where again we are above INR 31,000, which is one of the high revenue. This revenue per tower is excluding EB. We are not adding electricity in revenue per tower because otherwise it will be misleading. So revenue per tower has been constant at INR 31,000, INR 31,500 for us from last four quarters. This is a comparison. So what we have done is we have added electricity charges in FY 2026, Q4 and Q1 FY 2026. That is an apple-to-apple comparison. So you can see revenues grown by 6.1% in current quarter. If you see year-over-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 an April quarter we have scheduled, there was those CapEx and everything.

Speaker #3: Now, this revenue per tower is excluding EB. We are not adding electricity in revenue per tower, because otherwise it will 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.

Speaker #3: So there is an effort to have an Apple-to-Apple comparison. You can see revenues have grown by 6.1% in the current quarter. If you see year-on-year, we have reached ₹70.9 crores of revenue, compared to ₹68.5 crores in the previous quarter.

Speaker #3: And it was 66.8 in the same quarter last financial year. Our total expenditure has increased because, obviously, as we mentioned, there was an increase in the April quarter. There was 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.

Tushar Shah: 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%, where our PAT is against PBT is INR 195 million, and our net profit margin is constant at 20% with the electricity cost in picture. So if you see, PAT has been between 20% to 25% constantly in last four years. 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 a requirement from GST department. This is a comparison sheet for you guys for apple-to-apple comparison. I think balance sheet same FY25, FY26. Same thing as quarter was, there is no change in balance sheet.

Tushar Shah: 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%, where our PAT is against PBT is INR 195 million, and our net profit margin is constant at 20% with the electricity cost in picture. So if you see, PAT has been between 20% to 25% constantly in last four years. 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 a requirement from GST department. This is a comparison sheet for you guys for apple-to-apple comparison. I think balance sheet same FY 2025, FY 2026. Same thing as quarter was, there is no change in balance sheet.

Speaker #3: EBIT again remains strong at 74%. CapEx 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, EBIT CapEx has been between 20 to 25%, consistently, in the last full year. Also, I have already shared the change in accounting policy, effective from 1st April.

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, I can manage the same for FY25 and FY26. Since this was based on the quarter, there is no change in the balance sheet.

Speaker #3: It's the same as what we have shown you last quarter. That's it from my side. Thank you, everyone, and we can now open for Q&A.

Tushar Shah: 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 #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.

Aarti Shukla: Thank you, sir. All those who wish to ask a question, you 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: And we'll ask on your behalf. So we'll take the first question from the line of Mr. Greensing. Mr. Greensing, you can unmute and go ahead, please.

Speaker #2: Hello? Am I audible?

Guneet Singh: Hello, am I audible?

[Analyst 1]: Hello, am I audible?

Speaker #3: Yeah, we need your audio.

Tushar Shah: Yeah, Guneet. You are 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?

Guneet Singh: 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 we have from this from Q2, Q3, Q4 onwards, what kind of EBITDA margins?

[Analyst 1]: 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 we have from this from Q2, Q3, Q4 onwards, what kind of EBITDA margins?

Speaker #2: And what kind of revenue projections do we have from this firm for Q2, Q3, and Q4 onwards? What kind of EBITDA margins?

Speaker #3: So first, about the Zinc battery, we are not manufacturing it ourselves. We have done a tie-up with one of the manufacturers, which is JPB Batteries.

Tushar Shah: Guneet, first about zinc battery. We are not manufacturing ourselves. We have done tie-up with one of the manufacturer, which is GPB Batteries, who has plant in Kerala. And the promoter of zinc battery is based from US. He was one of the ex-battery head for Apple. So product has come out very good with him. And we are going to, we are buying lithium battery somewhere, we are going to buy zinc battery from GPB. 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 showing you that we are planning to do 3,000 sites for Vodafone Idea in current financial year.

Speaker #3: Who has land in Kerala. And the promoter of the zinc battery company is based in the US. He was one of the ex-battery heads at Apple, so the product has come out very good with him.

Speaker #3: And we are going to, like we are buying lithium batteries somewhat, we are going to buy zinc batteries from JPB. So it's not that we are manufacturing ourselves.

Speaker #3: We are going to just buy from the manufacturer. But yes, we would be the first one in the telecom industry to use a zinc battery next month.

Speaker #3: On sites, in terms of revenue projection, see, I'm sharing with you that we are planning to do 3,000 sites for Vodafone India in the current financial year.

Speaker #3: You know our average is around 30,000 to 31,000 per tower per month, excluding EB. So that would be—and if you take EB, EB would come to an average of 20,000 to 25,000 per site per month.

Tushar Shah: You know our average is around 30,000, 31,000 per tower per month, excluding EB. If you take EB would come to average 20,000, 21,000 per site per month. You can calculate top line. It is not right for me to comment on financial numbers because it is a listed entity and we cannot guide our financial number. As you can derive yourself, we are planning 33,000 sites for Vodafone Idea with an average revenue of 31,000 without GB, around 50,000 with GB.

Speaker #3: You can calculate the top line also, because it's not right for me to comment on financial numbers. Because it's a, you know, it's a risky entity, and we cannot guide our financial numbers.

Speaker #3: But as you can derive yourself, we are planning 3,000 sites for Vodafone India, with an average revenue of ₹31,000 without EB, and around ₹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?

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?

[Analyst 1]: 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 advantages of zinc battery. One is in terms of pricing. Lithium prices have gone very high. For 100Ah, lithium pricing is currently costing ₹48,000, and it is expected to rise in the future also.

Tushar Shah: Two, three major advantages of zinc battery. One is in terms of pricing. Lithium prices have gone very high. For 100 AH, lithium pricing is right now costing INR 14,000 and which is expecting to rise in future also. Zinc battery will cost me around INR 33,000 for 100 AH. We normally use three batteries on every site, 300 AH, then it will vary up to 600 AH, 900 AH also. In terms of efficiency, it will give the same benefit of 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. That is it. That is the benefit of zinc battery.

Speaker #3: 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.

Speaker #3: In terms of efficiency, it will give me the same benefit as a lithium battery. It will be small in size, have fast charging, and provide more backup.

Speaker #3: A major benefit compared to lithium is it's fire resistant. Lithium batteries still have a chance of catching fire. Zinc batteries will not have any fire.

Speaker #3: It's a fire-resistant battery, and that's it. That's the benefit of a lithium battery.

Speaker #2: So, this is for 33,000, and currently, how much are we procuring battery?

Guneet Singh: This is for INR 33,000, and currently how much are we procuring battery for?

[Analyst 1]: This is for INR 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 100 AH.

Speaker #2: So basically, this will reduce our CapEx. Is that correct?

Guneet Singh: Basically this will reduce our CapEx. Is that correct?

[Analyst 1]: Basically this will reduce our CapEx. Is that correct?

Speaker #3: Right. And it will reduce the CapEx, and we also do some operations cost savings. 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 we also do some operation cost. It will also reduce my operation cost, but yes, major benefit will 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. For this current financial year, we only have about 3,000 extra tenancies from Vodafone or extra towers.

[Analyst 1]: Got it. 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 Vodafone. The 3,000 is tenancy.

Tushar Shah: So see, it is not only Vodafone. 3,000 is tenancy.

Speaker #2: Okay.

Guneet Singh: Okay.

[Analyst 1]: Okay.

Speaker #3: 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: 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. 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 many more business BSNL may come up. We hope that even Reliance will open soon after IPO. So opportunities are very huge. But as of now, on conservative basis we are saying close to 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.

Speaker #3: And the visibility we're seeing in the current financial year, there are many more businesses. BSL may come up. We hope that even Reliance will open soon after the IPO.

Speaker #3: So, the opportunity is 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?

Guneet Singh: Got it. So in the current quarter we just added about, you said 150 sites.

[Analyst 1]: Got it. So in the current quarter we just added about, you said 150 sites.

Speaker #3: 150.

Speaker #2: 150 entities.

Tushar Shah: 150 tenancies. Right.

Speaker #3: Right.

Speaker #2: And for Q2, can you give a breakdown for Q2, Q3, and Q4?

Guneet Singh: Can you give a breakdown for Q2, Q3, Q4?

[Analyst 1]: 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.

Tushar Shah: Well, see, right now we are planning, you can take another 3,000 to consider 2,000 H2H sites. Q2 would be lower. Q3, Q4 are always high for me. So exact numbers I cannot give, but yes, totally almost 35% to 40% happens in H1 and 60% of the work I do in H2.

Speaker #3: So exact numbers I can't give, but yes, in total, almost 35–40% happens in H1, and 60% overall, 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,

[Analyst 1]: 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. So only change over here is that our rollout started from mid-June. So let us see how much we can cover up in Q2 because it is also rainy season. So we will try our best to achieve the best numbers in Q2. So whatever spillover is there, we can easily get covered in Q3 and Q4.

Speaker #3: So only change measures that are rollout started from June to 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 covered in Q3 and Q4.

Speaker #2: Got it. And these 3,000, I mean, these are tenancies, or?

Guneet Singh: Got it. These 3,000, these are tenancies?

[Analyst 1]: Got it. These 3,000, these are tenancies?

Speaker #3: Tenancies. Tenancies.

Tushar Shah: Tenancies.

Speaker #2: Okay. So, out of this 3,000, how many would be on our existing towers, and how many new towers do we plan to?

Guneet Singh: Okay. Out of this 3,000, how many would be on our existing towers and how many new towers do we plan to?

[Analyst 1]: Okay. 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, based on Vodafone's planning...

Tushar Shah: 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% will be shared.

Speaker #3: But normally, it should be an 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. So 80% of 3,000 would be new towers that we will erect.

[Analyst 1]: Okay. So 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?

Guneet Singh: Got it. This 3,000 you are saying it is a conservative figure for this year, right?

[Analyst 1]: Got it. This 3,000 you are saying it is a conservative figure for this year, right?

Tushar Shah: Yes.

Speaker #3: Yes.

Speaker #2: And we don't already have the letter of intent or orders for these 3,000. That's what we are expecting.

Guneet Singh: We do not already have the letter of intent or orders for these 3,000. That is what we are expecting.

[Analyst 1]: We do not already have the letter of intent or orders for these 3,000. That is what we are expecting.

Speaker #3: We have master service agreements with all operators, right? But, you see, their planning happens as per their budget rather than ours. So Vodafone has done a rollout right now—planned rollout only for ₹6,000 crore, which they have received from SBI.

Tushar Shah: We have master service agreement with all operators, right? But see, their planning happens as per their project progress. So Vodafone has done rollout right now, planned rollout only for INR 6,000 crore which they have received from SBI. As and when they receive fund they will start releasing the nominals. They have not released any 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 or close to 10,000 sites, out of which we are targeting 3,000. As and when SBI approves their next set of funds or next phase of rollout will start, we will get more sites.

Speaker #3: So as and when they receive funds, they will start presenting nominals. There's not really the nominals, 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 to 8,000 sites, or close to 10,000 sites, out of which we are targeting 3,000.

Speaker #3: So, as and when SBI approves their next set of ones, or the next phase of rollout to 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. So basically, the jump in revenue should come only from FY28.

[Analyst 1]: Got it. All right. So basically, the jump in revenue should come only from FY 2028.

Tushar Shah: Yes. Because that's the time when we will get a full year benefit of the revenue of Vi sites.

Speaker #3: Yes, because that's the time when we'll get a full-year car benefit from the revenue of PI sites. So, you'll see margins, you'll see a jump even in Q3 and Q4.

Guneet Singh: Got it.

[Analyst 1]: Got it.

Tushar Shah: You'll see margin, you'll see jump even in Q3 and Q4, but full year benefit you will get it in FY28.

Tushar Shah: You'll see margin, you'll see jump even in Q3 and Q4, but full year benefit you will get it in FY 2028.

Speaker #3: But the full-year benefit, we'll get 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.

[Analyst 1]: 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.

Guneet Singh: Yeah, that should be the incremental we should expect Q3 onwards, right?

[Analyst 1]: Yeah, that should be the incremental we should expect Q3 onwards, right?

Speaker #2: Yeah, that should be the incremental we should expect Q3 onwards, right?

Speaker #3: Yeah. Right.

Tushar Shah: Right.

Speaker #2: 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: Got it. All right, sir. In terms of EBITDA margins, we will be maintaining the same or have we seen any cost escalations or?

[Analyst 1]: 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, we will have the same EBITDA margin with EBITDA 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 will have the same EBITDA margin which AP has got, we have it right now, which is around 59%. We will maintain the same EBITDA margin for coming quarters also.

Speaker #2: All right. Thank you very much.

Guneet Singh: All right. Thank you very much.

[Analyst 1]: All right. Thank you very much.

Speaker #1: Hey, good night. Good night. Good night. Good night. थोड़ा सा मुझे भी कुछ बोलना है। आप जो बोल रहे हो, EBITDA margin same रहेगा, yes, no doubt.

Ajay Sharma: Guneet. Let me also say something.

Guneet Singh: Yes.

[Analyst 1]: Yes.

Ajay Sharma: What you said, EBITDA margin will remain the same. Yes, no doubt. For the longer period, EBITDA margin will remain the same. But today, huge specific. 10 years का rental agreement करते हो। ठीक है। जब अगर आप 10 years का long term का rental agreement करते हो तो as per Ind AS जो first 5 years है उसके अंदर आपका notional loss थोड़ा बड़ा होता है और regular loss जो है आगे next 5 years के अंदर आपका notional profit ज्यादा हो जाता है। ठीक है। तो उसकी वजह से आपका EBITDA margin थोड़ा strengthen होता है. Like उसी balance sheet के अंदर मेरा impact आया हुआ है थोड़ा, Ind AS का notional जो loss होता है उसकी वजह से। तो यह point आप हमेशा consider करना. Ind AS के working की वजह से impact आता है आपका EBITDA पे।

Speaker #1: For the longer period, EBITDA margin same रहेगा. But आज के दिन flux की, हमारा एक 10-years का rental agreement करते हैं, ठीक है?

Speaker #1: जब अगर आप 10 years का long term rental agreement करते हो, तो as per India’s, जो first 5 years हैं, उसमें regular loss होता है। आगे next 5 years के अंदर आपका notional profit ज्यादा हो जाता है। ठीक है?

Speaker #1: तो उसकी वजह से आपका EBITDA margin थोड़ा shorter होता है, उसी balance sheet के अंदर मेरा impact आया हुआ है, थोड़ा notional IND-AS का notional जो loss होता है, उसकी वजह से। तो ये point आप हमेशा consider करना। इसका impact आता है IND-AS की working की वजह से, impact आता है आपका EBITDA पे।

Speaker #2: Okay, sir. Got it. ठीक है, sir. Thank you very much. I wish you all the best. John Mark, thank you.

Guneet Singh: Okay, sir. Got it.

[Analyst 1]: Okay, sir. Got it.

Ajay Sharma: Yeah.

Tushar Shah: ठीक है sir, thank you very much. I wish you all the best. Join back if you want.

[Analyst 1]: ठीक है sir, thank you very much. I wish you all the best. Join back if you want.

Speaker #1: Thank you.

Speaker #3: Thank you.

Ajay Sharma: Thank you.

Aarti Shukla: Thank you. We will take the next question from the line of Mihir Talati. Mihir, you can unmute and go ahead, please.

Speaker #1: एक मिनट। We'll take the next question from the line of Mike. Mike, you can unmute and go ahead, please.

Speaker #4: Yeah. Hi, sir. Thank you for the opportunity. Sir, ये जो 3,000 towers which we are targeting from BI, 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?

Mihir Talati: Yeah, hi sir. Thank you for the opportunity. Sir, ये जो 3,000 towers which we are targeting from Vi, what is the confidence level that we will be getting these orders and we would be executing the same this year itself?

Mahek Talati: Yeah, hi sir. Thank you for the opportunity. Sir, ये जो 3,000 towers which we are targeting from Vi, what is the confidence level that we will be getting these orders and we would be executing the same this year itself?

Tushar Shah: Mihir, you are talking about 3,000 sites from Vi, right?

Speaker #3: Mike, talking about the 3,000 sites from BI, right? We are very confident we'll achieve it because right now, flow is very good. We have been getting loading on a daily basis, numbers are getting added to our KT.

Mihir Talati: Yes.

Mahek Talati: 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, and based on our performance, we had a meeting with Jagbir Singh, who is their national CTO. We met planning team and even Gurgaon central team is very happy with our performance. As of now, we do not have any reason to say we will not achieve. Yes, we are very confident. Team down the line is actually ready. They have been executing site delivery in rainy season. We have been doing a great significance in 150 tenancies 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.

Speaker #3: And based on our performance, we had a meeting with Jagmeet Singh, who is their national CTO. We met the planning team, and even the Vodafone central team is very happy with our performance.

Speaker #3: So as of now, we don't see—we don't have any reason to say we will not achieve. Yes, we are very confident. The team down the line is actually ready.

Speaker #3: They have been executing sites daily, even in the rainy season. We have been doing 100 sites, and you can see 150 tenancies in mid-June, which was during the rainy period across most of India.

Speaker #3: We are very confident. We have execution capacity. We have enough funds. So, 3,000 should not be a challenge for us.

Speaker #4: Okay. And what is the current order book from BI? Like, is it 700 tenancies or 1,100?

Mihir Talati: Okay. What is the current order book from Vi? Is it 700 tenancies or 1,100 tenancies?

Mahek Talati: Okay. What is the current order book from Vi? Is it 700 tenancies or 1,100 tenancies?

Speaker #3: 700 is every tenancy. 700 plus, it would not be every site; it would be 700 and more. We have already done 150. Another 700 is my tourist KT.

Tushar Shah: 700 plus. If you talk about exercise, it will 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 on day out. As of date when I am sitting here, it is 700 plus other than 150 which I have done earlier.

Speaker #3: My KT keeps increasing every day because they keep loading me with sites day in and day out. So as of today, when I'm sitting here, it's 700 plus, other than 150 which I've done earlier.

Speaker #4: Okay. And sir, this BSNL order, we have been targeting for the past, like, seven or eight months. Now, all of a sudden, we are saying that we don't want to comment more on the growth perspective regarding BSNL because of the delay.

Mihir Talati: Okay. This BSNL order we have been targeting from past like seven, eight months. Now all of a sudden we are saying that we do not want to comment more on the growth perspective BSNL because of the delay. Can you clarify more on this? What is the reason? Are we expecting any orders this year or it again expired by next one to two years? Anything on that side as well?

Mahek Talati: Okay. This BSNL order we have been targeting from past like seven, eight months. Now all of a sudden we are saying that we do not want to comment more on the growth perspective BSNL because of the delay. Can you clarify more on this? What is the reason? Are we expecting any orders this year or it again expired by next one to two years? Anything on that side as well?

Speaker #4: Can you clarify more on this? What's the reason why we are expecting any orders this year, or is it again delayed by the next one to two years?

Speaker #4: Anything on that side as well?

Tushar Shah: Mihir, 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. See, we also comment based on the numbers which we receive from operator. But when I quote some numbers to you 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 issues with the Tejas equipment. Obviously we are optimistic about BSNL. We are expecting some numbers in current year. BSNL is in clear path of 2x coverage next five years which they have declared on public platform two days back.

Speaker #3: So, Mike, we are very optimistic about BSNL as a company, but when I speak on a public platform or when investors are there, what happens many times is that when we see, we also commit basically on the numbers which we receive from the operator.

Speaker #3: But when I quote some numbers to you guys, and then we are not able to achieve them because of operator issues, it comes back to us: why are you declaring numbers if you're not achieving them?

Speaker #3: BSNL numbers are very high. We already have some orders in our hands which we are not executing because of their issues with the Azure equipment.

Speaker #3: So, obviously, we are optimistic about BSNL. We are expecting some numbers in the current year. So BSNL is on a clear path of 200,000 towers in the next 5 years, which they declared on a public platform 2 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 will be same as aggressive as we have to be for BSNL also. Once we get confirmation from BSNL that their Tejas equipment issues are resolved and they are ready to launch the new rollout phase.

Speaker #3: So, obviously, when a CMD of BSNL declares something, it would be after a lot of planning. But let it come on the ground. Let them give me a confirmed date by when they want to start the rollout.

Speaker #3: 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. As we say, we are as aggressive for BSNL also.

Speaker #3: Once we have confirmation from BSNL, let them say that just equipment issues are resolved and they are ready to launch, or ready to launch the new rollout phase.

Mihir Talati: Okay. Basically this FY27 will be ending with roughly 10,500 tenancies. Is that the correct estimate, assumption?

Mahek Talati: Okay. Basically this FY 2027 will be ending with roughly 10,500 tenancies. Is that the correct estimate, assumption?

Speaker #4: Okay. And so, basically, for FY27, we will be ending with roughly 10,500 tenancies. Is that the correct estimate or assumption?

Tushar Shah: Right. We already have 7,000 plus. We will add another 3,000. It will be 10,000 plus tenancy.

Speaker #3: Right. So we already have 7,000 plus. We'll add another 3,000. It would be 10,000 plus tenancy.

Mihir Talati: What would be the funding requirement for this and how are we funding the same?

Mahek Talati: What would be the funding requirement for this and how are we funding the same?

Speaker #4: And what would be the funding requirement for this, and how are we funding this?

Tushar Shah: Sir, as of now sir, 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.

Speaker #3: Sir, as of now, we have enough funds from my internal accruals. We are not seeing any major fundraise right now. But it depends—if I get more orders than expected, then we may decide on a fundraiser.

Speaker #3: As of now, we have not taken any call on it. So, whenever the right time comes, we will come back to you if there is any plan on fundraising or anything.

Mihir Talati: Okay. We are expecting 20% PAT margin to sustain this year, right?

Mahek Talati: Okay. We are expecting 20% PAT margin to sustain this year, right?

Speaker #4: Okay. And we are expecting the 20% PAT margin to sustain this year, right? The Q1 number. So, why isn't there a fall in the PAT margin from 25% to 15%?

Tushar Shah: Yes.

Mihir Talati: Q1 number.

Mahek Talati: Q1 number.

Tushar Shah: Yes.

Mihir Talati: Why there is a fall in PAT margin from 25% to 15%?

Mahek Talati: Why there is a fall in PAT margin from 25% to 15%?

Speaker #3: So.

Speaker #4: On an engineering number?

Tushar Shah: When you see year on year, there was a Vi reversal in the last quarter. Last financial same quarter, we were having a Vi reversal of our bad debts provision. That is why it went to 25%. Otherwise, it will always be around 20% plus with EBIT.

Speaker #3: Right. So when you see year-on-year, there was a VI reversal in the last quarter. In the same quarter of the last financial year, we had a VI reversal of our vendor's provision.

Speaker #3: That's why it went to 25%. Otherwise, it will always be around 20–21% with EV.

Mihir Talati: Okay, understood. Thank you.

Mahek Talati: Okay, understood. Thank you.

Speaker #4: Okay, understood. Thank you.

Aarti Shukla: Thank you, Mihir. We will take the next question from the line of Divyansh Thakur. Mr. Divyansh, you can unmute and go ahead, please.

Speaker #1: Thank you, Mike. We'll take the next question from the line of Devyansh Thakur. Mr. Devyansh, you can unmute and go ahead, please.

Divyansh Thakur: Hello sir. Sir, congratulations on the great set of numbers. 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?

Speaker #5: 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?

Tushar Shah: Since last year, out of 3,000 tenancy, already done 150 in Q1, which I have already shown in my numbers in our presentation slides. 750 tenancy. We are already working on 700 plus tenancy, other than 150. While sitting today on a call, I have around close to 850 already in my hand, and there is a 10 time 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. See, only challenge is right now Vodafone has got INR 6,400 something crores funds from SBI and Consortium. Now they are awaiting another set of finances or funds to be released from SBI and Consortium.

Speaker #3: So the first thing, sir, out of 3,000 tenancies, we have already done 150 in Q1, which I have already shown in my numbers in the presentation slides.

Speaker #3: We have done 150 tenancies. We are already working on 700-plus tenancies other than the 150. So, while sitting today on this call, I have close to 850 already in my hand, and there is the entire Diamonds which are remaining ahead.

Speaker #3: 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—see, only challenge is right now Vodafone has got ₹6,400-something crores cap from SBI and warrants.

Speaker #3: Now they are awaiting another set of finances or funds to be released from SBI and the consortium. So, if they are able to secure funding, then obviously 3,000 is 100% doable.

Tushar Shah: If they are able to secure funding, then obviously 3,000 is 100% doable. Which is right now very possibility because Aditya Birla Group is on a go right now, and he has declared numbers. We do not see any challenge in achieving 3,000 going forward.

Speaker #3: And which is right now very positive, because this has been the incentive and a goal right now, and he has declared numbers. So we don't see any challenge in achieving 3,000 going forward.

Divyansh Thakur: Sir, we are pretty confident that we will be able to do 3,000 this year.

Speaker #5: Sir, so we are pretty confident that we'll be able to do 3,000 this year. Okay, sir. And also, I just want a clarification on that—you know, what is this 31,000 without EV and 50,000 with EV?

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? Sorry if I-

Speaker #5: Like, sorry if I—

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. But 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 am showing you number of revenue per tower, it is without electricity. While my books, the number which you see in P&L and benefits, which is my top line, it is with electricity from Q1 onwards.

Speaker #3: No, no, up to 30, up to the last financial year, our top line was only rent and IP fees. We didn't use to, we never used to add electricity reimbursement in the top line.

Speaker #3: But due to a change in GST guidelines from Q1 this year, we have added electricity reimbursement in our top line. So there is a change in accounting policies.

Speaker #3: So, when I am showing you the number of revenue per tower, it's without electricity. While in my books, the number which you showed—or which you see in the P&L and balance sheet, which is my top line—it's with electricity from Q1 onwards.

Divyansh Thakur: Okay, sir. There have been news around that Vodafone Idea, BSNL, both are going now aggressive as they have secured the funding.

Speaker #5: Okay, sir. Okay. And, you know, there have been news around that, you know, Vodafone Idea and BSNL both are now going aggressive as they have secured the funding.

Tushar Shah: Right.

Divyansh Thakur: What is the growth outlook that we have? Also, where are we on the fundraise? I think last quarter you talked about that we might be needing money.

Speaker #5: 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?

Tushar Shah: Right. So, Divyansh, in terms of funding, I have already said Vodafone has planned to raise INR 45,000 crore funding, which will roughly come up to 45,000 sites, covering 18 months to 24 months. They have already said they are targeting 3,000 to 10,000 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-led consortium for another set of funds to be released from them. So Vodafone is very aggressive. They have been giving the site thing. They are giving all other IP-1 sites, and Vodafone is 100% very aggressive. So roll out and 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.

Speaker #3: Right. So, sir, Devyansh, in terms of funding, I already said Vodafone has planned to raise ₹45,000 crore in funding, which will roughly convert to 45,000 sites over the coming 18 to 24 months.

Speaker #3: They've already said they are targeting 3,000 sites every month. Out of ₹45,000 crore, they have secured ₹6,400 crore. And they are in the final stage with the HBank consortium for another set of funds to be released from there.

Speaker #3: So Vodafone is very aggressive. They have been giving me sites day in, day out. They are giving all the other IP sites. And Vodafone is 100% very aggressive.

Speaker #3: Ronatan, 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 funds.

Tushar Shah: Government has already allocated enough budget for BSNL in last year's budget itself. 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 actual rollout has been delayed for past one month and half year. Once they are able to control or 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. Right, that was your question, right? Or you still.

Speaker #3: Their funds come from the government. The government has already allotted enough budget for BSNL in last year's budget itself. They have declared a plan of ₹77,000 crore capex for the coming five years, which is equal to 200,000 sites in the coming five years.

Speaker #3: Only challenge, so I'm not as confident as Vodafone, because we are yet to see resolution of Sterlite's equipment, which—they are facing issues with the Sterlite equipment due to which their entire rollout has been delayed for the past one, one and a half years.

Speaker #3: Once they are able to control or once they are able to resolve the stage's equipment, we are very sure even BSNL will do a huge rollout.

Speaker #3: But let's wait and watch till it comes on the ground and they start the actual rollout. Right? That was their question, right?

Divyansh Thakur: Yeah. Yes, sir. And sir, where are we on the fundraise part? You had mentioned last quarter that we might look.

Speaker #5: Yeah, yeah. Yes, sir. And sir, where are we on the fundraise part? You had mentioned last quarter that, you know, you might.

Tushar Shah: Right. 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 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. Whenever right time comes, we will surely come back to you guys for fundraise.

Speaker #3: Right. They just mentioned to me that, as of now, we are working on 3,000 tenancies. As of right now, for next quarter, we have enough funds with us to roll out the number of sites we are targeting.

Speaker #3: But as if I get more orders, if we're able to crack some things, if we're able to get more orders from VI or from BSN, we will decide.

Speaker #3: As of now, we have not decided whether we want to go ahead with the fundraise, or when we will go ahead with the fundraise. So, whenever the time comes, we'll surely come back to you guys for the fundraise.

Divyansh Thakur: Okay, 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?

Speaker #5: Okay, sir. So basically our whole plan depends on how Vodafone Idea and BSNL execute their plan. If something does not go well for them, then we might be feeling the pressure too, right?

Tushar Shah: That is true for any company, because all companies are dependent on their customer, whether it is a FMCG product. If customer do not 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 growth.

Speaker #5: Am I right?

Speaker #3: That's true for any company because all companies are dependent on their customers. Whether it's an FMCG product, if the customer doesn't buy the product, obviously the company will only produce products and not be able to sell them, right?

Speaker #3: So Vodafone Idea and BSNL are customers. Yes, we are dependent on our customers for our work.

Divyansh Thakur: Okay, sir. Thank you. Thank you so much for answering my question.

Speaker #5: Okay, sir. Thank you. Thank you so much for answering my question.

Aarti Shukla: Thank you, Divyansh. We will take the next question from the line of Saket Kapur. Saket, you may unmute and go ahead, please.

Speaker #1: Thank you, Devyansh. We'll take the next question from the line of Saqib. Saqib, you've been unmuted—go ahead, please.

Saket Kapur: Namaskar sir. As I think Tushar Ji or I think Gajraj Ji was answering that it is the dependence 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 on in terms of growth and are reporting increase in growth in revenue as well as profitability. So these 2 aspects of BSNL, the Tejas issue, the Vodafone funding, how are we aligning our business prospects for this current year and what should investors conservatively also look ahead for this year in terms of profitability?

[Analyst 2]: Namaskar sir. As I think Tushar Ji or I think Gajraj Ji was answering that it is the dependence 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 on in terms of growth and are reporting increase in growth in revenue as well as profitability. So these 2 aspects of BSNL, the Tejas issue, the Vodafone funding, how are we aligning our business prospects for this current year and what should investors conservatively also look ahead for this year in terms of profitability?

Speaker #2: Namaskar, sir. As I think so, Tushad ji—I think Zoyja ji was answering that it is the dependence factor on the customer only that will define how the company is going to progress.

Speaker #2: 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 2 2 years post our this fundraising exercise which which because of some reasons we could not execute, things have just turned turtle down and things are not at all on in terms of growth and reporting increase in growth in revenue as well as profitability.

Speaker #2: So, these two aspects of BSNL—the stages issue and the Vodafone funding—how are we aligning our business prospect for this current year, and what should investors conservatively also look ahead to for this year in terms of profitability?

Saket Kapur: Suppose these 2 issues do not play out positively for the company, then what should we be 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 would be able to take this quarter as a good quarter. So if you could just clear my doubts, sir, it will be very helpful.

[Analyst 2]: Suppose these 2 issues do not play out positively for the company, then what should we be 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 would be able to take this quarter as a good quarter. So if you could just clear my doubts, sir, it will be very helpful.

Speaker #2: Suppose these two issues do not play out positively for the company, then what should we be penciling in going ahead? How will growth then shape up?

Speaker #2: What is the plan B? And some understanding, because somebody was commenting on a very good quarter, so I could not make sense how we have been able to post or take this quarter as a good quarter.

Speaker #2: So if just if you could just clear my doubt, sir, I would be very helpful. It will be very helpful.

Shiv Lature: तिनोतपुर साहब, first of all मैं हिंदी में बोलूंगा।

Shivshankar Lature: तिनोतपुर साहब, first of all मैं हिंदी में बोलूंगा।

Speaker #3: Kapoor sir, first of all, मैं हिंदी में बोलूंगा.

Saket Kapur: मैं भी हिंदी में ही बात करूंगा, साहब। क्षमा चाहता हूँ, मैंने अंग्रेजी में बात की। बताइए।

[Analyst 2]: मैं भी हिंदी में ही बात करूंगा, साहब। क्षमा चाहता हूँ, मैंने अंग्रेजी में बात की। बताइए।

Speaker #2: मैं भी हिंदी में ही बात करूंगा, साहब। क्षमा चाहता हूँ, मैंने अंग्रेजी में बात की।

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 का 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.

Shivshankar Lature: इसलिए मैं हिंदी में बात करना चाहता हूँ कि आपने बहुत rightly question पूछा है। Last two years से हम लोग जो BSNL का 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.

Speaker #3: इसलिए मैं हिंदी में बात करना चाहता हूं कि आपने बहुत राइटली क्वेश्चन अच्छा पूछा है। लास्ट 2 इयर्स से हम लोग जो BSNL का बात, आई एम द बेसिकली BSNL कॉन्ट्रैक्टर। एंड ऑल दिस थिंग, व्हाट हैपन द अगर आप देखेंगे मार्केट में जो भी लोग BSNL का काम ले चुके थे, उनका बैंक बैलेंस और एवरीथिंग हैज़ गॉन इन लॉस। हम लोग बड़ा कॉशियसली BSNL को वॉच कर रहे थे पहले BSNL का प्लान था। कि हम रूरल में करेंगे। बाद में उनका प्लान शिफ्ट हो के बॉम्बे दिल्ली एमटीएनएल में आ गया जिसमें हमने नियर अबाउट 100 साइट दोनों जगह हमने और टारगेट करके उसको अचीव किया। रहा सवाल सर इसका जो ग्रोथ होता है जैसे कि 2G 3G 4G एंड 5G का जो ट्रेवल चल रहा है वो ट्रेवल में 3G टोटली बंद हो गया और 4G चालू हो गया। और 2G का अभी भी कस्टमर अवेलेबल है। सो मैं ये बोलना चाहता हूं कि कंपनी का प्रोस्पेक्टिव नॉट ओनली Vodafone BSNL और Jio भी साथ साथ में आ रहा है। Airtel का रोल आउट भी कम है और ज्यादा आपने अगर सुनील मित्तल साहब का लास्ट क्वार्टर में उनका प्राइसिंग अगर देखा होगा तो बढ़ गया था। कल Vodafone ने डिविडेंड भी डिक्लेअर किया था। तो मार्केट में जब ये ऑपरेटर लोग अपना कॉस्टिंग या इन्वेस्टमेंट निकालने के लिए उनके पास एक सोर्स है कि जो प्राइसिंग बढ़ा के वो लोग अपना टेलीकॉम का इन्वेस्टमेंट रिकवर कर सकते हैं। सेकंड पॉइंट हम लोग बड़े क्लियर है BSNL और Vodafone के लिए और BSNL को हमने थोड़ी देर के लिए स्टॉप इसलिए किया जब भी तुषार बता रहा था आपको कि हम BSNL का जब तक एंड कन्फर्म उनका सीएमडी लेवल या जो भी मीटिंग्स है उनके फंड्स एलोकेशन के बाद उनके बाद उनका रोल आउट चालू हो जाएगा। तो उन्होंने लास्ट अगले 5 साल में हम लोग 1 लाख साइट करेंगे। ऐसा अनाउंसमेंट किया है। तो कमिंग टू द रियल पॉइंट इज दैट हमारे पास आज की डेट में जो ऑर्डर है वो पूरा के पूरा वीआईएल का ऑर्डर है। और वीआईएल का ऑर्डर में हम लोग पूरा कॉन्फिडेंट है क्योंकि उनके हम प्रेफर्ड पार्टनर हैं। एमएसए है और उन लोग हमको लॉकिंग भी 10 साल का दे रहे हैं। सो जो फंड रेजिंग और ये इशू है जो अब तक हमारे खुद के पैसे जब तक सेकंड क्वार्टर या थर्ड क्वार्टर तक ह्यूज नंबर नहीं आता है तब तक हम फंड रेजिंग को जाना नहीं चाहते। क्योंकि बैंक फंड इज आल्सो अवेलेबल बिकॉज़ एवरी मंथ वी आर आल्सो रिपेइंग द बैंक फंड। तो हमारा क्लियर एंड क्लियर विज़न और फोकस ये है कि वीआईएल का 3000 साइट करके एक बार हमारा 10,000 का नंबर अचीव हो जाए और 100 सीआर का जो हमारा प्रॉफिट टच करने का टारगेट है क्वार्टर वाइज क्वार्टर अपना सॉरी ईयर वाइज ईयर तो क्वार्टर वाइज हम लोग अगर 100 100 करोड़ का चलेंगे तो 400 करोड़ का नेट प्रॉफिट मतलब टॉप लाइन होएगा और बॉटम लाइन हम सोच रहे हैं कि 22 23 24 के आसपास ऐसा ग्रो करके जो 15 अभी अवेलेबल है उसको चार पांच चार पांच हजार हजार साइट अगर हम अगले तीन क्वार्टर में जोड़ सकते हैं तो वी आर क्वाइट कॉन्फिडेंट अबाउट दैट कि ये नंबर हमारे को अचीवेबल लग रहा है। और फंड रेजिंग का जो इशू है अगर बल्क ऑर्डर BSNL या और किसी से आता है सपोज Vodafone नहीं बोला कि नहीं Suyog आपको हम और दो स्टेट ऐड करना चाहते हैं लाइक MP है जहां पे हमने हमारा प्रेजेंस नहीं रखा है हमारे को फिलहाल पांच स्टेट पे हमने फोकस किया हुआ है कोलकाता महाराष्ट्र मुंबई दिल्ली एंड यूपी ये पांच स्टेट के बाद भी दो स्टेट वो बिहार और एमपी अगर हमको ऐड कर देते हैं तो 5000 का नंबर हम फोकस करेंगे तो अचीवेबल 3000 हो जाएगा। दिस इज आवर क्लियर कट स्ट्रेटजी। इज इट ओके सर?

Shiv Lature: हम लोग very 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, MP NL 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 आ रहा है। Airtel का rollout भी कम नहीं है। और अगर आपने Sunil Mittal साहब का last quarter में उनका pricing 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 बढ़ा के वो लोग अपना telecom का investment recover कर सकें। 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 confirm उनका CMD level या जो भी meetings हैं उनके funds allocation के बाद, उनके बाद उनका rollout चालू हो जाएगा। तो उन्होंने last अगले पाँच 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 का order में हम लोग पूरा confident हैं क्योंकि उनके हम preferred partner हैं, MSA हैं और उन लोग हमको locking भी 10 साल का दे रहे हैं। जो fundraising और यह issue है, जब तक हमारे खुद के पैसे second quarter या third quarter तक loose 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.

Shivshankar Lature: हम लोग very 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, MP NL 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 आ रहा है। Airtel का rollout भी कम नहीं है। और अगर आपने Sunil Mittal साहब का last quarter में उनका pricing 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 बढ़ा के वो लोग अपना telecom का investment recover कर सकें।

Shivshankar Lature: 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 confirm उनका CMD level या जो भी meetings हैं उनके funds allocation के बाद, उनके बाद उनका rollout चालू हो जाएगा। तो उन्होंने last अगले पाँच 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 का order में हम लोग पूरा confident हैं क्योंकि उनके हम preferred partner हैं, MSA हैं और उन लोग हमको locking भी 10 साल का दे रहे हैं। जो fundraising और यह issue है, जब तक हमारे खुद के पैसे second quarter या third quarter तक loose 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: तो हमारा clear and clear vision और focus यह है कि VIL का 3000 site करके एक बार हमारा 10,000 का number achieve हो जाए और ₹100 करोड़ का जो हमारा profit touch करने का target है year wise, 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 चार-पांच हजार sites अगर हम अगले तीन quarters में जोड़ सकते हैं, तो we are quite confident about that कि यह 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 बोला कि नहीं Suyog आपको हम और दो states add करना चाहते हैं, like MP है, जहां पर हमने हमारा presence नहीं रखा है। हमारे को फिलहाल पांच states पर हमने focus किया हुआ है Kolkata, Maharashtra, Mumbai, Delhi and UP.

Shivshankar Lature: तो हमारा clear and clear vision और focus यह है कि VIL का 3000 site करके एक बार हमारा 10,000 का number achieve हो जाए और ₹100 करोड़ का जो हमारा profit touch करने का target है year wise, 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 चार-पांच हजार sites अगर हम अगले तीन quarters में जोड़ सकते हैं, तो we are quite confident about that कि यह 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 बोला कि नहीं Suyog आपको हम और दो states add करना चाहते हैं, like MP है, जहां पर हमने हमारा presence नहीं रखा है। हमारे को फिलहाल पांच states पर हमने focus किया हुआ है Kolkata, Maharashtra, Mumbai, Delhi and UP.

Shiv Lature: ये पांच states के बाद भी दो states, 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. Is it okay?

Shivshankar Lature: ये पांच states के बाद भी दो states, 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. Is it okay?

Saket Kapur: Sir, इसमें एक point मुझे just पूछना था आपसे। जैसे आपने कहा कि आप ₹100 करोड़ का revenue quarterly target करते हैं। जो अभी शायद 71-

[Analyst 2]: Sir, इसमें एक point मुझे just पूछना था आपसे। जैसे आपने कहा कि आप ₹100 करोड़ का revenue quarterly target करते हैं। जो अभी शायद 71-

Speaker #2: साहब, इसमें सर एक पॉइंट मुझे जस्ट पूछना था आपसे। जैसे आपने कहा कि आप ₹100 करोड़ का रेवेन्यू क्वार्टरली टारगेट करते हैं, जो अभी शायद ₹71 करोड़ आया है। हां, वही रेवेन्यू का टारगेट करते हैं और आप पूरे वित्त वर्ष में ₹400 करोड़ उसके हिसाब से एनुअलाइज करना चाहते हैं। तो अभी जैसे ₹71 करोड़ का नंबर आया है, इसमें शायद अभी हमारा इलेक्ट्रिसिटी का भी कुछ रीइंबर्समेंट को भी हमने डाला है। वो परसेंटेज भी अगर अजय जी बताएंगे कि कितना परसेंट था और लाइक वाइज फिर क्या कंपैरिजन होगा। तो ये ₹100 करोड़ का नंबर आप कब एक्सपेक्ट करते हैं कि किस क्वार्टर से हम इसमें ये देख सकते हैं हमारे इसमें?

Shiv Lature: हाँ, revenue का target.

Shivshankar Lature: हाँ, revenue का target.

Saket Kapur: हाँ, वही revenue का target करते हैं और आप पूरे वित्त 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। वो % 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-

[Analyst 2]: हाँ, वही revenue का target करते हैं और आप पूरे वित्त 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। वो % 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।

Shivshankar Lature: Q4 से हम लोग देख सकते हैं।

Speaker #3: Q4 से हम लोग देख सकते हैं इसको।

Saket Kapur: 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।

[Analyst 2]: 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।

Speaker #2: Q4 से देख सकते हैं। और सर, आपने कोई डिविडेंड के विषय में बताया था किस कंपनी ने डिविडेंड—आप किसके विषय में बोल रहे थे कि डिविडेंड डिक्लेयर किया है? मैं आपका पॉइंट मिस कर गया।

Shiv Lature: Sir, हमने dividend इस company में भी देने को AGM में बोले हैं. Vodafone का जो dividend आया था sir INR 14, Vodafone company ने dividend declare किया.

Shivshankar Lature: Sir, हमने dividend इस company में भी देने को AGM में बोले हैं. Vodafone का जो dividend आया था sir INR 14, Vodafone company ने dividend declare किया.

Speaker #3: सर, हमने तो AGM में बोले। Vodafone का जो डिविडेंड आया ना सर, ₹14 Vodafone कंपनी ने डिविडेंड डिक्लेअर किया।

Saket Kapur: Vodafone तो sir loss making है. उन्होंने dividend दिया.

[Analyst 2]: Vodafone तो sir loss making है. उन्होंने dividend दिया.

Speaker #2: Vodafone तो सर, लॉस मेकिंग है। उन्होंने डिविडेंड दिया।

Shiv Lature: दिया है। Second ही मेरे को news आई थी। वो हमारे एक investor ने call किया। उन्होंने invest नहीं किया।

Shivshankar Lature: दिया है। Second ही मेरे को news आई थी। वो हमारे एक investor ने call किया। उन्होंने invest नहीं किया।

Speaker #3: दिया है। सेकंडली, मेरे को न्यूज़ आया था, तो हमारे एक इन्वेस्टर ने कॉल किया। इंडस ने किया।

Saket Kapur: Indus ने दिया। ठीक है, साहब। मैं वापस 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।

[Analyst 2]: Indus ने दिया। ठीक है, साहब। मैं वापस 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।

Speaker #2: इंडस ने दिया। ओके। ठीक है। ठीक है साहब। मैं वापस क्यों में आता हूं। बट सर एज अ इन्वेस्टर तो हमें निराशा ही फेस करनी पड़ रही है अभी भी। हम तो दो साल से इन्वेस्टेड हैं कंपनी में, निराशा का...

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 वो issue होगा ही sir। Cash flow में हमको तकलीफ होगा ना sir।

Shivshankar 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 वो issue होगा ही sir। Cash flow में हमको तकलीफ होगा ना sir।

Speaker #3: कोई सवाल ही नहीं है, सर। आपने जो 18 महीने की स्ट्रैटेजी है, अगर मैं रॉन्गली एग्रीमेंट करके आपको नंबर दिखाने के लिए कहूंगा तो कंपनी का BSNL का पेमेंट का भी इश्यू है। तो उस इश्यू में, सर, कैश फ्लो में हमको तकलीफ होगी ना, सर।

Saket Kapur: नहीं sir.

[Analyst 2]: नहीं sir.

Shiv Lature: आगे jump मारने के लिए पीछे दो कदम आना पड़ेगा sir।

Shivshankar Lature: आगे jump मारने के लिए पीछे दो कदम आना पड़ेगा sir।

Speaker #2: नहीं साहब एक हां।

Speaker #3: Again, जंप मारने के लिए पीछे दो कदम आना पड़ेगा, सर, मुझे।

Saket Kapur: 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 हमारे 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।

[Analyst 2]: 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 हमारे 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 Sir, मेरे मन का question आपने पूछा। पता नहीं, आपका मेरा wavelength बहुत जम रहा है। क्योंकि मैं भी यह बोलता हूँ, मेरे को BSNL के customer क्यों नहीं दिख रहे हैं?

Shivshankar Lature: कपूर Sir, मेरे मन का question आपने पूछा। पता नहीं, आपका मेरा wavelength बहुत जम रहा है। क्योंकि मैं भी यह बोलता हूँ, मेरे को BSNL के customer क्यों नहीं दिख रहे हैं?

Shiv Lature: 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 महामंडल और luxury। Luxury है बोले तो Vodafone, Idea और Jio है। और rural का जो network bus का है, वो local transport है, वो जो government चलाता है। अब उसमें profit कब आएगा, इस सवाल का जवाब देना थोड़ा Kapur साहब मुश्किल है। I think they are running their show, that's all.

Shivshankar Lature: 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 महामंडल और luxury। Luxury है बोले तो Vodafone, Idea और Jio है। और rural का जो network bus का है, वो local transport है, वो जो government चलाता है। अब उसमें profit कब आएगा, इस सवाल का जवाब देना थोड़ा Kapur साहब मुश्किल है। I think they are running their show, that's all.

Saket Kapur: 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 आपके performance. जी Thank you.

[Analyst 2]: 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 आपके performance. जी Thank you.

Aarti Shukla: Thank you, Saket. We will take the next question from the line of Surbhi Bishwa. Surbhi, you can unmute and go ahead please.

Surbhi Bishwa: Hi, am I audible?

[Analyst 3]: Hi, am I audible?

Aarti Shukla: Yes, you are audible. Go ahead.

Surbhi Bishwa: 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?

[Analyst 3]: 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 you are right. On an overall portfolio basis, my tenancy is around 1.2. We are not tying 2x as such. Yes, we are targeting to reach 1.8 in coming three quarters, which should be a very decent ratio for the industry. Now 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 HSPA or small cell site will always have one, 1.1.2 ka tenancy. Now as the trend is going, operators are more keen on doing macro site rollout. If you see out of 150 tenancy which I did, all were macro site. Then if you say I have done 95 tower, but I have done 150 tenancy. Which is a very good ratio of 1.8 the Q1 rollout.

Tushar Shah: Surbhi, first thing you are right. On an overall portfolio basis, my tenancy is around 1.2. We are not tying 2x as such. Yes, we are targeting to reach 1.8 in coming three quarters, which should be a very decent ratio for the industry. Now 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 HSPA or small cell site will always have one, 1.1.2 ka tenancy. Now as the trend is going, operators are more keen on doing macro site rollout. If you see out of 150 tenancy which I did, all were macro site. Then if you say I have done 95 tower, 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 the 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 or PAT number, I will just say what are my ROI. When I do a site with single tenancy, I get recovery in three or 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.

Tushar Shah: Yes, we are very confident by the end of FY 2028 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 or PAT number, I will just say what are my ROI. When I do a site with single tenancy, I get recovery in three or 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 Bishwa: 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?

[Analyst 3]: 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. See, basically MSA says this is a framework and these are the charges what you can charge me for X type of sites. Under MSA, they will keep loading me site on daily basis across India. It is with all operators, whether it is BSNL, Airtel, Jio. No MSA has a closed end like I will give you only 1,000 or 2,000. It is a blanket MSA. You can do any number of sites what you are capable of.

Tushar Shah: All the MSAs of all the operators are the framework and a fixed commercial. See, basically MSA says this is a framework and these are the charges what you can charge me for X type of sites. Under MSA, they will keep loading me site on daily basis across India. It is with all operators, whether it is BSNL, Airtel, Jio. No MSA has a closed end like I will give you only 1,000 or 2,000. It is a blanket MSA. You can do any number of sites what you are capable of.

Surbhi Bishwa: And one more question. After the planned Vodafone expansion, what percentage of revenue will Vodafone contribute?

[Analyst 3]: And one more question. After the planned Vodafone expansion, what percentage of revenue will Vodafone contribute?

Shiv Lature: Right now we are seeing we want to take Vodafone to 30%, 32%. We are in around 32% of revenue from Vodafone. Once we are able to do the 3,000 or more sites from Vodafone.

Tushar Shah: Right now we are seeing we want to take Vodafone to 30%, 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 Bishwa: Okay, thank you so much.

[Analyst 3]: Okay, thank you so much.

Shiv Lature: Thank you.

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?

[Analyst 4]: Am I audible?

Aarti Shukla: 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?

[Analyst 4]: Yeah. The company has increasing highlighted fiber and a fiber per strategy. What percentage of FY 2027 revenue will come from fiber and what EBITDA margin does fiber generate versus towers?

Tushar Shah: Rakesh, basically EBITDA margin, since it is an IP-1 model, we have a similar EBITDA margin. The EBITDA margin which was there without EB, which was around 70%, we still generate the same EBITDA margins for fiber. In terms of revenue, it will be very marginal. See, right now, we are focused on more of a macro site, and more and more sites are coming to rural villages, where if 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 their 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 FTTX, where we do more of an fiber for operator. But in current FY23, 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?

[Analyst 4]: Is fiber an asset-heavy recurring revenue business like towers?

Tushar Shah: Yeah

Rakesh Mehta: Or it's a predominant?

[Analyst 4]: Or it's a predominant?

Tushar Shah: 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 IP-1 model.

Rakesh Mehta: Okay. Thank you, sir.

[Analyst 4]: Okay. Thank you, sir.

Tushar Shah: Okay.

Aarti Shukla: Thank you. We will take the next question from the line of Varun Tyagi. Varun, you can unmute and go ahead, please.

Varun Tyagi: Sure. 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 1,500 tenancies in a quarter?

[Analyst 5]: Sure. 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 1,500 tenancies in a quarter?

Tushar Shah: Well, Varun, I have said that figure number is on conservative basis. If you see what I have said, it 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 funding from SBI, we will increase our target.

Varun Tyagi: When do you expect that to happen?

[Analyst 5]: When do you expect that to happen?

Tushar Shah: See, I think before few days, Mr. Vijay has himself stated. Abhijit Kishore has 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 will hear, the same thing from them.

Varun Tyagi: Okay. All additional towers, we see the average rental to be around 31,000.

[Analyst 5]: Okay. All additional towers, we see the average rental to be around 31,000.

Tushar Shah: 31,000 is rental per site. Yes, it will be same. Revenue per tower will be around 31,000.

Varun Tyagi: PAT margins, we expect around 20% to stay at these levels?

[Analyst 5]: PAT margins, we expect around 20% to stay at these levels?

Tushar Shah: Yes, 20%.

Varun Tyagi: Okay. Thank you.

[Analyst 5]: Okay. Thank you.

Aarti Shukla: Thank you. All those who wish to ask a question may use the option of raise hand, or alternatively, you 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?

[Analyst 6]: Hello, sir. Am I audible?

Tushar Shah: Anubhav, you are audible.

Anubhav Jain: My question is 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?

[Analyst 6]: My question is 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, if you see when we started BSNL project one and a half years back, it was around those 2,000 plus sites which were pending for billing. Right now, it is 186. In this quarter, they have not added anything because of visibility reasons and agency issue. Yes, 186 sites billing is still pending, which we are expecting now. The news which we got a few days ago is that more or less that 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.

Anubhav Jain: In FY27, once the bulk order of Vodafone 45,000 sites program is allocated across IP-1s, what is the realistic annual new tower addition run rate Suyog can sustain? How are you positioning for the next wave of 5G in private networks and rural roads?

[Analyst 6]: In FY 2027, once the bulk order of Vodafone 45,000 sites program is allocated across IP-1s, what is the realistic annual new tower addition run rate Suyog can sustain? How are you positioning for the next wave of 5G in private networks and rural roads?

Tushar Shah: Anubhav, can you repeat? I missed in between what you said.

Anubhav Jain: Okay, sir, I will repeat it. Looking beyond FY27, once the bulk of the Vodafone 45,000 sites program is allocated across IP-1s, what is the realistic annual new tower addition run rate Suyog can sustain, and how are you positioning for the next wave?

[Analyst 6]: Okay, sir, I will repeat it. Looking beyond FY 2027, once the bulk of the Vodafone 45,000 sites program is allocated across IP-1s, what is the realistic annual new tower addition run rate Suyog can sustain, and how are you positioning for the next wave?

Tushar Shah: If we go above FY26, FY28, we are in another 5,000 sites from Vodafone. Out of 45,000 sites, we are saying we will do around 8,000 to 10,000 tenancies from Vodafone in two financial years. This year we are targeting 3,000. Next year we are targeting 5,000 from Vodafone, based on our visibility, finances, and everything. Above three there is no point saying some numbers after FY28 because Salesforce business 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 Vodafone.

Tushar Shah: If we go above FY 2026, FY 2028, we are in another 5,000 sites from Vodafone. Out of 45,000 sites, we are saying we will do around 8,000 to 10,000 tenancies from Vodafone in two financial years. This year we are targeting 3,000. Next year we are targeting 5,000 from Vodafone, based on our visibility, finances, and everything. Above three there is no point saying some numbers after FY 2028 because Salesforce business 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 Vodafone.

Anubhav Jain: Okay, sir. Thank you, sir.

[Analyst 6]: 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 comments before we end this conference call?

Shiv Lature: Yeah. Thank you very much to all our attendees investor conference. We are very confident about our work and the rollout in the last 10 years. We have added to 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.

Tushar Shah: Yeah. Thank you very much to all our attendees investor conference. We are very confident about our work and the rollout in the last 10 years. We have added to 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, everyone. Last page.

Tushar Shah: Thank you, everyone.

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Q1 2027 Suyog Telematics Ltd Earnings Call

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