Exicom Tele-Systems Limited (EXICOM) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Execom Telesystem Q1FI27 Earnings Conference Call hosted by Monarch Network Capital Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. This conference may contain certain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Rahul Dhani. Thank you, and over to you.

Thank you, Ananya. Good afternoon, everyone. On behalf of Monarch Network Capital, it's my pleasure to host the Senior Management of Exicom Telesystem. We have with us Mr. Anand Nahata, Managing Director and CEO of the company, and we have Mr. Siraj Khanna, CEO of the company. We will start the call with Omni Ramachan Management and then move to Q&A. Thank you, and over to you, sir.

Thank you, Giral. Good evening, dear shareholders. This is Anant Nahata, CEO of the company. Let me take you through briefly the results of quarter one fiscal 27 and the management presentation. So, the overall performance on a standalone revenue rose by 57% year-on-year to 237 crores. And our EBITDA more than doubled to 21 crores, lifting the EBITDA margins to 8.8%. On a consolidated basis, revenue grew 61% to about 331 crores, and the EBITDA loss narrowed from almost 40 crores in the quarter last year to about 22.5 crore loss in the current quarter. I understand that while we grew our revenue, but the profitability is still not in black, but my confidence comes from what both the businesses delivered and won, which is more customers. So today we stand with a much more diversified customer base compared to any other previous quarters before, more geographies with the focus on exports. And a very strong order book and commitments from our entire organization, which can deliver a strong result through fiscal 27. On Tritium side, which is a big investment of ours in a DC fast charging company based out of U.S., for the first time, the bookings... Passed north of $20 million. It used to be in the range of $10 million every quarter, so the bookings have doubled, so have the revenue to about $10 million last quarter, and, sorry, $10 million this quarter. We are in a phase where our latest products, including Triflex, DCFlex, GridFlex, are being... Put under trial by various customers, and these trials are in mid-stages to advanced stages, which will be unlocking double-digit large million-dollar order through the course of 2027, through the course to deliver in 2027. Next page. Execom is a company in the middle of energy transition. We operate in telecom. We operate in battery energy storage systems, which connects renewable energy to the point of consumption. We operate in electric mobility via our EV charging business. And there are few mega trends which are driving this change. There is new technology, which is being invested upon, particularly to do with electrification across grid as well as electric mobility. There is increasing fuel prices due to geopolitical situation as well as supply chain disruptions. Countries are prioritizing energy security. The countries are shifting away from fossil fuels for achieving energy security. On the telecom side, there is huge rise in data traffic, moving towards 5G networks, and taking telecoms, high-speed telecom communication. To underserved regions across the world. For example, in India, high-speed communication is being taken to panchayats and smaller towns which were not connected with high-speed internet earlier. And these megatrends are driving the change in our business and the near-term outlook of our business. Now moving to business update in critical power segment. In critical power, we achieved a revenue of 177 crores, which was 73% higher than quarter one fiscal 26. On a sequential basis, the revenue dropped by 11%, which Happens, as in most of the industrial business, Q4 tends to be the strongest quarter as customers look to scale deployments and exhaust their budgets. The key highlights of quarter one were across different categories of customers. In the private sector, where we work with India's leading telcos as well as tower companies, we entered into supply agreement. for power systems and batteries with one of the largest tower companies. And this is going to be a continuous business. Not much of this business was done in Q1, but the business engagement was inked. And this is going to show results in the subsequent quarters. We also secured large DC power systems order from a leading Indian telco worth 85 crores. And more of these We'll follow in subsequent quarters. Some of these large orders, you know, the margins were offset by a rise in forex and commodity prices, but due to large volume, we were able to offset some of these cost increases. On government side, we are supplying to system integrators to execute one of the most ambitious Fiber connectivity projects by Government of India, which is BharatNet. We supply multiple products in this project, including smart enclosures, hybrid power systems, powered by solar, and lithium-ion batteries. We have 60% share of business in this project based on the system integrators we are working with. And while, due to monsoons, the project was slightly slow, but we are still delivering, you know, the number of systems which is making this to be one of our highest revenue contributors in quarter one and even going forward. In terms of exports, Our key markets of Africa, Middle East, and Southeast Asia delivered export sales of roughly 15 crores in the quarter, which is about 8% of our overall sales in critical power. And there has been some good new order booking, which makes us hopeful of better than expected export sales in FY27. Our target is to get the export sales to nearly double of 8%, which was achieved this quarter, to roughly about 15% of critical power sales in a year. Not just some of the big power companies and telcos, we also added multiple small customers in the long-tail list for their DC power systems requirement and had more than 10. BSS deployment is the commercial industrial sector, which is giving us good operating know-how and ability to scale this business in second half of fiscal 27. Our order book, as of today, stands at about 3,000 crores in critical power, which gives us long-term visibility to... We will be able to execute and optimize our operations in a way which expands margin to the maximum possible. You know, key future opportunities on the next slide. Thank you. Quarter 2, we have already won some more orders in the DC power system and battery space. You know, these are for the customer where we had some wins in Q1 and further expanded our order intake in quarter 2. In VioletNet, the ambitious government program that I was talking about, we already have 700 crores of open orders, which is going to be then followed by almost an 800 crore service order over the next 10 years. Our target is our strong execution here. We also won Phase II of a BSNL-led program to... For telecom infrastructure in some of the underserved Indian border region, these are again awarded to large system integrators with whom they are, you know, tying up for business. We expect almost 2,000 sites, you know, 2,000 towers to be allocated to Execom based on the conversations we are having with a contract value of somewhere between 9,200 crores. And, as I mentioned before, with India's two top tower companies, with one of them, we have already started supplying batteries and power systems on large scale, which, effect of which you will see in our revenues in quarter two and onwards. And, from quarter four, we also expect to start supplying lithium-ion batteries to a large... Power companies, that will only come in the last quarter of the current financial year. So, point is, on a strong order book, we see momentum towards order booking in current quarter as well as order three and quarter four to keep the pipeline quite robust. In critical power, there are five forces which are here defining how operators buy site power. This is the next slide. So first, 5G VTS stations are much heavier loads. And they demand modular and expandable fuel power, so the system has to be very modular in terms of putting more power in it or connecting it to solar, and we design systems keeping this architecture in mind. The second main force is battery technology changing from lead acid to intelligent lithium, where AGDECOM plays a major role. Third is grid and generator-based energy is being converted to hybrid energy. Telecom sites are increasingly being powered by grid, solar, batteries, and a little bit of generator. Lastly, you know, instead of treating telecom sites as... Passive site, which spurts out alarms in case things are not working correctly. That is transitioning to intelligent fleet management. So, you know, there are so many sensors at the site, so do our products, which send a lot of data both, you know, to the network operating center and to the cloud to... You know, not just give allowance, but to predict, to do preventive maintenance, and enable fewer site visits. So every product that we make has to have this connected intelligence to be able to serve the modern telcos. And that's where the first growth vector for us comes from. It is to selling to global telcos and towercos with this connected intelligence. In terms of current progress, they're well-positioned here. Overall revenue is on track. As I explained, large orders from the public and private sector in India are received. Face of exports has to increase. As I mentioned, right now, exports are about 8% of our revenue, which we want to increase to 15% within this financial year. Within this financial year. The second growth vector is BESS. Again, for our shareholders, we are in Commercial, industrial-based systems, which are usually half a megawatt hour or smaller. I mean, they can be bigger, but most of the deployments are, you know, under half a megawatt hour. We are not operating in utility scale best, and the reason is that So, you know, in solar plus storage for some of these commercial industrial areas, there is ROI viability, there is volume, and we are solving the real customer pain point of wherever they are trying to deploy the storage solutions. Today, we have about 15 megawatt hours of orders in hand, which are worth roughly 20 crores, and another 45 crores are 34 megawatt hours of orders in advanced pipeline. There has been some disruption of supply chain, especially in the battery materials and the battery-linked commodity pricing, but those have settled down now, and the supplier supply chain has already started, which will allow us to execute a lot of this backlog. I heard air exports I already spoke about. Next speech. This is starting off our EV charging business segment. So on page 11, what the data shows is that industry is at a pivotal point in EV charging. For the first time, we had nearly 31,000 registrations of passenger cars, which is the highest number till date. That is the resultant of A lot of new launches across, you know, Maruti, Tata, Mahindra, some of the luxury car makers. There were launches in the commercial vehicle segments, especially in the smaller form factor SCVs, and there were also, you know, intense... Participation and EV charging infrastructure deployment by companies such as Mahindra, Maruti and Winfast. Because of all that, I stand-alone revenue grew 15% from 53 crores to about 61 crores. Sequentially, it was a dip. Again, quarter four is not comparable to quarter one, but some of the infrastructure... Build out follows the car registration, and we are hopeful for continued growth in this segment based on overall, you know, vehicle sales that the industry is seeing. Another industry slide on page number 12. In terms of passenger EV in Q1, there were 85,000, almost 86,000 registrations, about 1,400 for buses, and 6,500 for goods carriers, and this means that Execom, from its customers, will have continued demand for AC charger orders, not just from the OEM, but even from e-commerce channels as well. And this is our standard product which we obviously continue to evolve based on technology from time to time, but it's a high-scale manufacturing product which we supply to India's top OEMs. Rise of goods carriers and electric buses also means we will have increased demand for high-power chargers such as 240 kilowatts. 180 or 220 kV. This industry dynamics, favorable dynamics, are being shaped by good policies. There are multiple states, cities. Which have notified mandatory, you know, EV-ready apartments to be there to get certificate of occupation. Delhi has outlaid a four-year, 15,000 crore EV policy to put in almost 30,000 plus EV charging points. Again, these are not just for cars. These are for two-wheelers, three-wheelers as well. Also, any, you know, OEM dealer might have an ED charging station now. Earlier it was a choice, but now they must have. And PM eDrive continues to sanction money for OEM. Electric buses and EV charging infrastructure for buses. Again, all this means there will be enhanced spending on the EV charging infrastructure, both from government and private players. In terms of key highlights for Execom and Cordova and FI27, we secured 100% share of business for a leading international seven brand for We launched wallbox chargers, home chargers. We renewed our agreement with the leading truck OEM for, you know, portable chargers. And we also launched chargers with a two-wheeler company as well. Five chargers with a two-wheeler company as well. We continue to focus on innovation and our new products include slim series chargers. These are for very dense spaces where there is not a lot of space to put bigger chargers. We have packed a lot of power into a small compactor and also put in innovative technology which can allow these chargers to share power. That is called ring topology. A lot of our customers are liking this and because of this differentiation, giving us added orders. In terms of our network and growth and our relationship with the CPOs, we've added 15 new network operators in terms of order intake in Q1 and have an order book of almost close to 180 DC chargers, which will continue till October 26. And not just in India, but IGDICOM is steadily focusing on exports for EV chargers. So we won orders from 10 new countries. A lot of these are pilot orders, and after pilot, we'll move to scale. But today, we have... An order book of almost 200 tools for our ACDC charges in India, including exports of about $2 million. And, you know, I think this will be the first year where export will be a sizable part of revenue, you know, as a percentage. You know, I don't want to commit on the target at this point, but our effort is... To be in the similar age in terms of percentage of sales of exports of the recharger, as I mentioned, in critical power. In Tritium, there is a momentum shift in demand, as I mentioned. The bookings are close to $21 million this quarter, and you can see this is crisis. They get the quarters before, and the sales is roughly $10.5 million. This backlog will help in continued growth over the coming quarters. As far as Tritium is concerned, our focus is on strategic customers. On the left, you see new products being tried by Fortune 100 companies in the area of EV charging network and fleet. And if these trials are successful, Tritium can be awarded more than $20 to $30 million contract for calendar 27. Similarly, we have a new product called GridFlex, which comes out from the same platform of TriFlex, but it's a bi-directional inverter to connect micro-grades or provide even EV charging as well. This is also being delivered and being tried at a hyperscale customer and subject to successful trials can be expected to be awarded for $20 million of contact for CY27. So, overall engineering efforts for the past two years has created strong pipelines with strategic customers, and focuses to secure majority of the orders that we want to execute in CY27 within calendar 26. That will put Trillium in a very different trajectory. Yes, it took longer for the turnaround, but we see, you know, not just green shoots, but we see the momentum and we see to scale to large revenue, triple-digit million revenue, based on these... The products that we have developed and the customer engagements that we have currently. Thank you. Thank you, dear shareholders. And with that, I would like to pass to Shiraz Khanna, our CFO, for a quick update on the financials.

Thank you so much, Anand, and good evening, everyone. I will take you through the financial In terms of standalone, as Anand had mentioned, standalone revenue for Q1 came in at 236.8 crores against the 150.7 crores done in the previous year, same quarter. This is a substantial 57% growth year on year. While it is a little lower, as compared to the previous quarter, which is quarter 4 of last year, by 15%, which is in line with our usual seasonality of our business, where Q4 tends to be the strongest quarter of the year. Charge point operators, OEMs, tend to utilize their budgets, and new budgets are taking time to be formalized in Q1, so this is a normal phenomenon. Within the standalone book, critical power grew by 80% year-on-year to 176 crores and EV grew by 15% year-on-year to 61 crores. Critical power was the standout driven by execution of the new telecom and the government orders we won over the last two quarters. Standalone gross margins for Q1 stood at 29.1%. Two percent above the previous quarters, which is Q4 of last year, on better pricing and customer mix in both the segments. On a year-on-year basis, gross margin was down by about 3.6 percent, primarily on account of the U.S.-led input cost pressure, partially offset by the favorable segment mix that we had. Standalone EBITDA came in at 20.9 crores, with a margin of 8.8% margin. This is 137% growth over the same quarter last year, which is quite phenomenal, which is 8.8 crores. From 8.8 crores at 5.8% last year, it has really grown up this time. The fixed cost was a challenging of 8.7 crores year-on-year, and I'll come back more on this in a moment, but the operating leverage on higher revenue and richer mix more than absorbed the increase. Standalone PAT stood at 4.9 crores at 2.1% margin, far better, and a meaningful turnaround from the last year same time. First quarter in last year, where we had reported actually a little bit of loss because of exceptional items. Depreciation has gone up this year, 10.3 crores we have. This is primarily because of post-Hedderabad plant was commissioned, and this is flowing into P&L. Other income was little lower than last year, year on year, primarily because the IPO funds. Which were put in FD have now got utilized and the interest now has been stopped because the funds were utilized to get the plant constructed and completed. Moving on to consolidated financials. On a consolidated basis, the revenue of Q1 was 331.1 crores, which is a good 61% increase year on year as compared to the last year same quarter. Critical power grew by 73% and EV grew by 50% on a consolidated basis. Lithium delivered its second consecutive quarter of above $10 million per quarter of revenue. Consolidated margins. It was 31.7% globally stable as compared to the last quarter of last year. On a year-to-year basis, consolidated gross margin was lower. That is finally largely because of Citium mix effect as margin normalized with fresh inventory purchases coming through this year. Consolidated EBITDA loss narrowed, as Anand mentioned, down to 21.9 crores. At a 6.6% margin negative. However, much improved from the previous year, 38.6% negative that we had. This is a very meaningful and year-on-year improvement driven by better sales at both the standalone and tritium level, partially offset by the lower gross margins and higher fixed costs. The PAT again has shown improvement from the loss of 83.1% now down to 73.6% loss. So, which we are seeing a healthy improvement happening. I mentioned about Hyderabad plant in a few places in my, you know, address to you. And Hyderabad plant, as you mentioned, since it's showing up in a few places, we shared in Financial Aid 26 that it had got commission and plant became operational in Q4, Financial Aid 26, and now it's fully into production in Q1. This has two visible impacts on P&L. First, depreciation is stepping in. Standalone depreciation is about 67% higher year-n-year, and consolidated it is higher by 57%. Secondly, the running of the Gurgaon and the Hyderabad plant were in parallel during this transition phase, which is additionally approximately 8.7 crores to our fixed cost while the transition is happening. This is a planned and time-bound investment. The Hyderabad facility gives us 3x production capability and capacity, positioning us to better deliver the 1,400 crores order book that we have and critically serving the demand pipeline that we built for the year Financially 27 and beyond. We expect the parallel run costs to phase out as Gurgaon transition completes over the coming quarters. The working capital again. This is the lifeline for any organization, and turning to the balance sheet, I want to walk you through the working capital dynamics that you will see in the numbers. With our plant running in parallel, we have a temporary built-up inventory in both the facilities. This is by design. We are stocking up both plants to ensure production continuously happens during this transition and to be ready for Q3 and Q4 book orders. We expect this to normalize as the transition stabilizes. Secondly, receivables. Account receivable is elevated, but this is in direct function of a sharp revenue increase that we have had in Q1 revenue, going up by 57% on a year-on-one basis, and 61% on consolidation basis. Collections' quality remain healthy, and the aging profile is intact. Third, debt and liquidity. Consolidated debt stood at about 370 crores as on 30th June 26th. Our debt coverage ratios remain well within the comfortable range. Our liquidity indicators are healthy and we have adequate headroom to fund both growth investment and working capital life cycle. We are managing the balance sheet with a lot of good discipline. So with this, I think a consolidated book order of 1,400 crores plus as on 30th of June, a record high sales. And Tritium also looking up in terms of increased booking. We look forward to the next quarters with a positive intent. Thank you so much, and back to you, Rahul, for question and answer.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Taksh Gaur from Brighter Mind Asset Management. Please go ahead.

Good evening, sir. Am I audible?

Yes.

Oh, yes, sir. You were at consolidated EBITDA breakaway in Q4, but have moved back to 22 crore EBITDA loss in Q1, despite 61% PY growth. So, I want to understand that what are the key drivers of this sequential margin deterioration, and how quickly do you expect to return to EBITDA break-even? That's my first question, sir.

So, thank you for your question. You're right, last quarter we did have EBITDA break-even owing to partly it was quarter 4, which usually is the highest revenue quarter for us. So, in that light, the EBITDA on the Indian business was much higher than in Q1, and in Tritium also was slightly higher, not because of sales, but because when we acquired the company, we had access to a decent bit of low-cost inventory, which over time, as we continue to sell, has eroded. So that made the margin for tritium, we were earlier enjoying unreasonably high margin to now still good margin but not as high as we were enjoying earlier. So, a combination of that resulted in a 22-kilo EBITDA loss. However, based on the order book that Tritium has today, based on the order book that Execom has today, I still expect Tritium EBITDA break-even in quarter 4-27, but on a consolidated basis, the break-even may be over the next two quarters. I can't specify whether quarter 2 or 3, but on a consolidated basis, it will be break even in quarter 2 or 3, and on tritium levels by quarter 427. Thank you.

Right, sir, right, sir. So, on a follow-up question, Tritium's order intake doubled to $20.8 million in queue. So, when do you expect these orders to start converting into revenue? And does the order pipeline give you confidence in achieving the guided 3x revenue growth and data break-even by Q4 F527 that you have guided in the last roundup?

Yeah. So, we are confident of that. As I mentioned, there are two types of growth levers happening at Tridium. Number one, the current backlog of orders is quite significant. It is $20 million. And that was the backlog on, you know, 1st July. That doesn't mean there is not going to be more order booking as time progresses. Also, there are some large strategic opportunities. These are large double-digit million numbers of revenue, which we are hoping to convert, you know, through this. Calendar year into commercial contracts, which can be started executing, which will be started, you know, which will be, which will be executed beginning calendar. So, based on both three things, the order backlog that we have, the pace of order book which we continue to build, and some of these large strategic wins, I'm sure that we will have 3x revenue growth compared to last year as well as EBITDA break even in quarter 427.

Right, sir. For my last question, with the Hyderabad plant now operational, what is the current capacity utilization and where do you expect it to reach in FI 27?

So the Hyderabad plant was built for a much larger capacity, for example, 2x of the AC charging capacity that we had, nearly 4,000 DC chargers. The infrastructure was built, and we keep adding plant and machinery and lines, as in when... We are seeing a surge in demand in AC chargers because of higher vehicle registration and passenger as well as commercial segment. So we have just ordered another line for AC chargers. So our, you know, in my view, our AC charger production run rate, monthly run rate, will almost grow by 50% in the next three months. Because of the demand. Overall capacity utilization I see on the DC charging to be about Sixty-five percent, you know, because that's a heavier machinery and, you know, it's not a mass manufacturing product. On AC charging, I see close to 100 percent. On DC power system line, I see close to, you know, between 90 and 100 percent. And on our PCBA lines, which manufactures all the critical PCB assemblies that we have. Design and develop IC utilization close to 100%, and same in batteries as well. So with the current plant and machinery capacity that we have put in most of the product lines, we are close to between 90 and 100% utilization. For DC charger, it was never meant to be 100% utilization because of the... You know, the way their product sells, that's about maybe 65 percent, but it does not prohibit us from expanding and adding new capacities. Some of the challenges today is not capacity, it's supply chain disruption. The geopolitical situation has caused supply chain disruption in semiconductors. Anything plastics-related, anything copper-related has become very expensive. So those disruptions impact, you know, availability of material, and that's why sometimes don't allow us to fully use our capacity. But, you know, our teams have been aggressively working on all those challenges, and I think we have been able to sort out most of them better than our peers.

Got it, sir. Thank you, and good evening.

Thank you. Thank you. The next question is from the line of Suraj C from Viji's Global Securities. Please go ahead.

Yeah, hi, sir. Good evening. I had a few questions. So, firstly, to start with in the EV charges segment, just wanted to understand a couple of things. First is revenue mix, let's say, after two years between critical power and EV. Secondly, also wanted to understand that what is the kind of growth you're expecting in EV charges, standalone, as well as in Tritium in the coming year. And so lastly, you just said that the capacity utilization or the capacity expansion is 2x of what the current capacity is. But as I could see in the annual report, you went from 42,000 AC charges to 2,22,000. So is there any confusion on my side?

Yeah, so, okay, I remember first of all your questions, but on the EV charging side, you know, we did about 277 crores of revenue on a standalone basis in FI 26, right? And about 30% of our overall revenue. And I think... This year, also, probably, you know, the mix will be similar. It may increase a bit for EE, but the mix will be similar. I know first quarter does not, you know, project that, but a lot of the EE growth is just happening, and some of this infrastructure built out will be as a result of this growth. I think we'll see that in the subsequent quarter. So, since the industry is growing, we also expect growth in the hardware business and allocate our resources. We cannot target every segment of growth and we have to make a conscious call to allocate our resources which are the most efficient use of our resources and are most profitable. So, I'll say a question. I do see growth in REV business from last year and the percentage of between two business divisions to be, you know, 70, 30-ish, maybe 65, 35, but in that range, you know, not very often. What was the other question?

So my other question was that in the annual report I read that we are expanding from 42,000 to 2,22,000 in AC charges. But then I guess you answered to some other participant that the capacity expansion has been 2x of PV charges in AC. So is there a misunderstanding?

I will check this again. I know the number of 2,020 is right. I think 48,000 was a single shift operation, whereas this doubling of the capacity is based on double shift operation, but I will take your coordinates and come back to you with an exact answer.

Okay, okay. And the second question of mine is that I just wanted to understand, I mean, how are we looking at depreciation, the kind of depreciation which I'm looking in the book, that seems to be a bit on the higher side, not a bit, I mean, a lot on the higher side. So, for example, in FI 26, the depreciation was 116 crores. And our blog, that comes to around 20-25%. So just wanted to get your views on the duplication.

You know, there are two things over here, on a standalone and a consolidated basis. So, on a standalone, I think the depreciation is quite normal. Because of the new plant commissioning, it increased by 10,000, not much. On Tritium, you know, in the last two years, we were in the product development journey. And also as a result of acquisition, we had to service. Certain customers just to, you know, because of the reasons we were not party to prior to our acquisitions. So there has been capitalization because of those reasons, a heavy R&D investment to get the products out, as I just mentioned, and these will last for the next five, seven years of revenue journey for Tritium. And yeah, I think that's the primary reason, not because of a lot of physical capex as such. But I think as soon as these projects start generating revenue, which I think is going to be quarter one, calendar 27, or quarter four this financial year, you know. You know, we'll see all that repudiation, you know, getting to use, you know, in terms of that investment, getting to use to start generating revenue. But just when you look at repudiation, look at Tritium as well as India separately, because there's R&D based on Australia and America, so the R&D cost is... Quite, quite massive, quite sizable. But then the product that they cater to, like the products you make at Execom, they cater to a, let's say, they'll cater to a billion dollar market by 2030. But the products that we're making at Tritium will cater to a 10 billion dollar market in 2030. So when you see some of the investment, you have to realize the context and the addressable market as well.

Okay, so is it reasonable to assume that Q4 for 3DM should be significantly higher in terms of top line and bottom line will be doing good because of these revenues kicking in?

Yeah, so that's, you know, again, in business there are so many factors, but today from... All the signals that we have from backlog, from order pipeline, which we continue to build every month, and some of the strategic, you know, revenue opportunities, which are large-scale multi-year revenue opportunities. We think all of them would have started. Some of them have already started, but all of them together to start, and, you know, giving us the kind of revenue and profitability that we have been hoping for the last two years, that, you know, starting point will be Q4, Q526, yes.

Understood, understood. That's great. And so lastly, in your presentation, the number of EVs, the number of EVs that are registered this quarter. So what I want to understand or interpret is that let's say if your market share in these EV chargers is around 50 to 60%. So, shouldn't it directly, you know, boil down to your number of units sold? So, when you say that, let's say, 50,000 EV cars were registered this quarter, so shouldn't your charges sold be around 25,000? I mean, doesn't it work that way?

Yes. So, good analysis, Gershin. Yes and no. We supply what is called a wallbox charger. If you have an EV, you would know there are two types of chargers, which are supplied with the car. One is a portable charger, which is like an adapter, looks like an adapter, and one is a wallbox charger, which gets mounted on the wall of your house somewhere. We have a very unfortunate share in the wallbox charger, not in the portable charger. Now, it depends on company to company. Like MG, every car supplies a wallbox charger. So there, your analysis would absolutely be right. But let's take some other car company. Not taking me, but there are some car companies who have EV models from very low cost to very high cost. So for the mass models, they do not supply a wallbox charger. So we will not end up supplying the chargers in those categories, even if there is growth. So, it depends. So, there is a good mix overall, but generally, the fleets and taxes, usually, they are not supplied by with Volbox chargers. But generally speaking, if there is growth, we have to grow, and I don't know if I mentioned this, but I see our AC charger monthly volume has already increased by 50% as we speak from, like, levels of last, you know, let's say, December or November, December. And it further will increase by 50% over the next three months. So, yeah.

Okay. So, any blended market share, if you could provide me a number?

Sorry to interrupt. Mr. Suraj, could you please fall back into the queue for any follow-up?

Yeah, yeah. I will. I will. So, I've asked the question already. I'll just get the number and I'll fall back in queue. No worry. Yes, sir. So, um, hello.

Yeah.

Yes, sir. So, just ask the question on, so, could you be able to provide the blended market share?

Yeah. See, blended, I would not know. As in our DHRP doc, the wallbox home chargers, at that time, we had 60% market share. I don't know the exact number today, but it will be fairly high. Like, you know, this is... My estimation, not from research report, but I think for Warbucks, I'd rather share still would be north of 50%.

Okay. Understood. Understood. Thank you. I'll fall back in.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. I repeat, please limit your questions to two per participant. The next question is from the line of Himansh Jain from Indira Securities. Please go ahead.

Hi, am I already?

Yes, you are.

So, my question was regarding, can you comment on your tritium capacity in the U.S.? At what capacity is it working?

At what capacity? Sorry, what? Tritium.

Is your tritium manufacturing in the U.S. working at?

Yeah, I got that, but what's the question? At what capacity?

And what capacity utilization? What is your top line that you can do in terms of manufacturing the DT charges over there, and what are we doing currently?

Yeah, so... I just saw this quarter we did about 10 million of revenue. I think the capacity there can service, you know, two and a half times of this revenue. So roughly, you know, let's say $100 million, slightly more maybe. And we're doing one foot of that today. That's not because of a structural problem, but because of the turnaround which is underway, and hopefully the flag end of it, once the three pillars of legacy products, which we have a backlog and continued pipeline, and some of the strategic projects, which are new products, they get qualified. I think, you know, we'll be utilizing, we'll have good utilization rates for that factory.

Got it. And just another question. As you told in your presentation that our EV business on a consolidated basis grew almost 50%, but on a standalone basis, it was roughly around 15%. So, despite, you know, several tailwinds in the AC charging, is there a reason that only 15% growth came on a standalone basis?

So, on a standalone basis, see, first of all, the momentum of the charging maker has just picked up this quarter, right? So, some of the demand will follow. But what happened is, I think AC charger still would have grown, but the value of AC charger is much less than a DC charger. On DC charger side, what happened, a lot of customers due to, you know, serializing. Commodity, Forex, and other associated geopolitical risk. They upfront ordered a lot of charges in Q4. That's why you see a very high revenue of AB charging in Q4, which was primarily pulling in DC charger demand from Q1. So, I don't have the numbers right now, but AC charger may have grown by 30% also, right? But DC charger, if it's only by 10%, that's why you're seeing the effective blended growth rate at 15%. So, you know, so I think it's just the timing issue, but this growth is not one time, it's continuing, and that's why I think we're going to see continued quarter-on-quarter growth. For both AC and DC chargers.

Thank you. The next question is from the line of Shashikan from Brighter Mind Asset Management. Please go ahead.

Thank you for the opportunity and good afternoon. My first question about the underutilization and the D&D drives, about the installation of charges, and the recent news articles are pointing towards the underutilization of the fund. And can you speak on that on this? What would be the possible reason why... Thanks, I'm not taking the right shape on the ground.

So, see, underutilization, so charging is something which has to be deployed at the right location of the right power, and when I see some good networks. There is one in South, there is one Pan India, there are some networks owned by India's biggest conglomerates. These are all having good utilization rates. And some charging sites even have utilization rates of more than 20%, which is like very, very good, excellent. Now, when we look at charging infrastructure on aggregate, on average, that's not the right way to look at it because a lot of older chargers deployed in 2020, 2021, 2022, you know, they're obsolete in terms of technology and power. You know, today nobody will go to a particular charger and charge their cards. You know, some of the chargers deployed under tenders, you know, I'm not even working properly at the highway location or city location. In fact, there was a study done by an independent consultant who gathers a lot of EV charging data. Again, I cannot say exactly about the accuracy of the report, but there is a report that... 30% to 35% of the deployed DC chargers are not even functional anymore. So our focus has always been on producing high-quality, reliable chargers. That's why, you know, India's best networks or most reliable networks would be on Execoms. Charger. So, it's a survival of the fittest. Eventually, good product survives, bad product dies. So, whether they're charging companies, good networks, people who are, you know, providing reliable uptime, you know, chargers and good charging facilities, you know, those will survive, and that's where we need to see the utilization, etc., right? The locations which... Don't matter or are obsolete, you know, shouldn't figure out in this calculation.

Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks.

So, I appreciate all the people, stakeholders, shareholders, joining this conversation with the management of Execom. We have a lot of potential, and we have, for the first time, industry tailwinds at a pace that we have never had before. We have the new factory. We have Tritium on the verge of turnaround, and we have put in all the hard work. You know, I see light at the end of the tunnel, which will result in not just scale revenue, but good profitability as well in the coming quarters. Thank you for staying with us, sticking with us, and we are here to serve you, and I think, you know, that journey is not far, it could be a couple of quarters. A way where you will see the expected results, not just on standalone, but consolidated. Thank you.

On behalf of Monarch Network Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.