Suyog Telematics Limited (SUYOG) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you to the Q4 and FI26 post-learnings conference call of Suyok Telematics Limited. Today on the call from the management team, we have with us Mr. Shivshankar Latouray, Managing Director, Ms. Subhashita Latouray, Home Time Director, Mr. Ajay Sharma, Chief Financial Officer, Mr. Tushar Shah, Business Head, India, and Mr. Suyash Latouray, Business Development Manager. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, this is a reminder that this call is being recorded. I would now request the management to detail us about the business performance highlights for the period ended March 2026, the growth perspective, and the vision for the coming years, post which we will open the floor for Q&A. Over to the management team.

And good morning, everyone. I'm Dushar from Suyok Telematics Limited. Our entire presentation has been uploaded on Monday exchanges. We are right now, we will discuss the critical sites which includes finances and the way forward. I am not running through entire presentation. Only someone wants it if there is any new investors on a call. Others will only go through the critical sites. So we have more time for Q&A. So, currently, we have only four mobile operators. My 14% of revenue came from RTI Limited, 22.8% came from Jio, VI was 26.7% and 2.5% of revenue came from BSN. We, as all you know, we work on only 26 states and UT. We have 6008 unit towers in our network, which has occupied by 7,318 tenancies. Out of 7,318 tenancies, we have 4,000 plus small cell, which also includes 1,000 plus home and sites. Around 6300 km of aerial fiber network we have across India, and there are 189 sites which are ready for integration and needs to be occupied by the various operators. So way forward, we all know Vodafone has got a big relief in terms of spectrum charges from the government in the world of declaring, they have already declared 45,000 towers in next years, which has again been revised to 50 to 30,000 towers in next 18 months. We are expecting a huge business from Vodafone in coming financial year, which is FY27. Already we are speaking with BSL, they are declaring some 10,000 sites, OPEX sites in current year and 20,000 CAPEX sites, but which we can confirm only once we get the BSL order in hand. So, around 70,000 crore budget has been marked by government in FY27 for telecom sector. As you know, we work in all the, we have urban sites, we have regional sites, we are also doing FTTH whenever required by operator, we are having a very huge presence of fiber, we are one of the IP, we are only one of the few IP companies who also use fiber along its tower, and we are, we have last year acquired Lotus Terra Infra, and we are working on a new equation if any possibility comes in our way. So I want to, you know, brief few details about Vodafone because we'll be banking a lot on Vodafone in current financial year. So Vodafone has already got AGR relief and their liability has been restricted to 64,000 crores. They've got a huge monitoring period which will improve their cash profits and which will be used for capex. Vodafone is already working with major, there is some HBI consultant is working to lend them 25,000 crores and there is another 45,000 crore investment expected soon. Uh, which, due to which Odafone management has, and you all know that Mr. Vila is now again back on Odafone board because of all this development. Odafone has already declared deployment of 60 to 70,000 new towers in next 12 to 18 months. We are expecting around 5,000 towers from Odafone in current financial year to be deployed. Uh, and a big bulk order is on our way, it should reach us by June and most likely we will be able to get a big chunk of business from Odafone by June and. As I said, BSN is also working on ruling out around 30,000 cents in current financial year, but we are not very sure when we get a final order from BSN. There are some issues with the, they just network in BSN. BSN networks are not getting stable. There are some SIM related issue where second type of SIM is not able to land on network and there are also some micro connectivity issue where their backhauling is not getting stable. So, unless their Tejas network gets stable, we don't expect any new orders from BSN right now, but as soon as their network related issues with Tejas are resolved, we can expect good orders from BSN. As you know, we have long-term MSA with BSN within 15 years lock-in period. Our growth drivers will again be a macro sites across India, which includes most probably 40-meter GBT towers and the RTT sites for metro city like Mumbai, Delhi, Pune. Fibre is one of our biggest USP where we are the only one of the FYP players who provide the Fibre connectivity which is the backbone of any 5G network or 6G network going on. So Fibre is one of our biggest USP and we are going good on Fibre network run out across India. These are, I am sure you must have seen our results by now. So, we have logged the revenue from operations to 2021 crore with EBITDA of 164 million, which is under. And again, we have sustained EBITDA margin or we have improved on EBITDA margin with 74% EBITDA. Our pack was 33 million and our net profit is 631 million. Profit before tax force is 33 million with pack of 631 million. Again, we have a strong pack margin of approximately 30 percent, which we are sustaining year on year. Our revenue from Tower has improved in last financial year, which has gone down more than 29,000 because of massive rollout of BSN in last financial year. So, FY26 has shown a good growth in revenue per Tower, which has reached 31,000, and we are sure we will sustain 31, 32,000 revenue per Tower even in coming financial year. I am sure you must have gone through all these financials, so I will not waste time on, you know, saying all the numbers. So, that's it from my side. Come this, we can open it for Q&A now.

Sure, sir. All those who wish to ask a question may use the option of raise hand. If you're not able to use the option of raise hand, you can post your question in the Q&A section and we'll ask on your job. So, we'll take the first question from the line of Darshan Pandya. Darshan, you can unmute and go ahead, please.

Hello, hi. I'm Audible. Hi, Dusharji. Good afternoon. Yes, sir. Sir, my question is, since we are expecting, you know, towers, tower orders from Vodafone as well and, you know, from BSNL now, how are we gearing up for this in terms of, you know, taking this capacity? Because I remember that in last call you said around 2,500, 3,000 towers that we will not have an issue. But then after that, we will need some debt also. And then just wanted your views on that.

So that's it. Right now, we are still awaiting a final numbers from Modafone. So as I said, even if they use 5,000 order, we don't need to rule out 5,000 in one month. We have to rule out that 5,000 cent throughout the year as per the multi-reliability. So as of now, we have not finalized any concrete plan. So as soon as we get a final order, bulk order from Modafone, we'll finalize the fundraising plan or whether you want to do it from internal accrues and as I do in the right time come, the right time come, we'll come back to you with the final plans of first.

Understood. And, sir, what were we planning for Q4 tower additions last quarter? I guess we have added around 106 or 108 towers in this quarter.

Right, 106 towers, right.

Correct, right. And this year, what are the plans, sir?

So, as I said, we are expecting about 5,000 orders from Vodafone. So, if we get them orders in the month of June or maybe July, we will deploy only 5,000 sites in current financial year.

Okay, and from BSNL or ATL, are we expecting anything?

See, ATL and Jio has not declared any rollout right now. So, they are working on their rollout numbers, and they have already invested huge amount in 5G. So, I don't see any major, and Jio is coming up with the IPO, as all you know. So, on this weekend, some clarity on ATL and Jio, there is no point declaring the numbers of ATL Jio. As far as BSNL goes, they have heard that they are coming up with a 30,000 sidecar rollout plan. But again, they are facing major issue with the Tejas equipment. So once it gets result, then only we will declare BSL numbers for you.

Understood. And Q1 will be somewhat similar to what Q400 is, right?

Q1 will sustain the Q400. There will be no major rule because even if I get orders by end of June, everything will be deployed in Q2.

Understood.

So Q1 will be similar to Q4 of last year.

Understood. I'll fall back in the game. I have some few more questions. I'll ask later. Thank you.

Thank you, Darshul. We'll take the next question from the line of Maik Talati. Maik, you can unmute and go ahead, please.

Yeah, hi, sir. Sir, am I audible? Sir, just wanted to understand, you mentioned that there is a delay in the PSNL order because of the issues with the THC equipment. So, can you use a specific timeline by when it is on? The problem will be solved and we can get the order in a rough timeline.

Mike, we are now involved in this entire transaction of Tejas to BSNL. So, we can't commit any timeline because we are ourselves not aware. See, we don't speak with Tejas. Tejas are direct partners of BSNL. They are now well connected. So, we are also waiting to hear from BSN management. And as of now, we have not got any confirmation from BSN management about the same.

Okay, and sir, we have been mentioning that we have done some massive rollout from VSNL in the last one and a half year, but in terms of revenue, it's just two and a half percent of the revenue from VSNL. So can you please explain why is there such a difference in terms of revenue?

Same thing. So, even the government of India, they have 27,000 odd crore to rule out sites. They are very keen to rule out sites major in Mumbai, Delhi and other parts of India, but they really don't want to go in with the rule out unless the equipment issues are resolved. So, as soon as the equipment issues of Tejas are resolved, they will come up with a massive rule out. But as you know, it's an indigenous network. BSN is using Tejas, which is an indigenous network. So, it's taking time for resolution of the equipments.

No, sir. I was asking about the past. You have mentioned that we have done a lot for BSNL in the last two years. But in terms of revenue, it's just two and a half percent.

So we have done almost 1800 cents for BSN in the last two years, out of which 200, 180 rents and billing is still pending. But if you see BSN renters are very low, like if I pay a rent of say around 15, 20, 25,000 for private operator, I pay highest rent for BSN 7,000. That's why you don't see that same similar hiking top line when I do rollout for BSN. That's why You must have seen a deep in per site tower revenue it went to 29,000 when I did BSL rollout but there were rental capping. So whenever I rollout site rental which is a pass-through amount is much lower for BSL compared to private operator. While my PEG percentage remains same, but my top line gets down because of the lower renters.

Okay. So, this can go up to 4%, 5% of the revenue going forward or this will stay in the current

financial aid, which is FI 21, we are only, as of now, we are very sure of Oda phone rule out. So, Oda phone rule out will improve our top line and pet everything. So, if we do BSN number, we want to see how much number we are doing for BSN, but obviously, it will not have any impact on pet or EBITDA. The top-line revenue point tower can decrease the entry if we do BSN tool-out, which can go down by 1,000 or 2,000 tokens.

Okay. And last in terms of the VI order, which you're expecting for 5,000 hours, have we bidded for the same? Are we L1?

So, we don't need to. For Vodafone, there is no bidding on in the process. We have a master service agreement with Vodafone. So, as and when the finance has been, we had a few meetings with the top guys of Vodafone planning head and the management of Vodafone. They will, as of now, verbally assured us of a big rollout, and they will directly allocate us the sites as per if there are some sharing available in our existing site, they will 100% go for it, whereas they will allocate us the anchor sites. So, there's no bidding process required for VI.

Understood. So, in all likelihood, VI is more or less conform. It's just the quantum and the timeline is pending.

Even Vodafone wants to go with only top two or three, yeah, rule out. Top three or two or three IP companies. One is Indus, which will have a major chunk of business, but most likely followed by Suyu, and then there will be two, three more IPs.

Okay. Okay. Understood. Thank you.

Thank you.

Thank you, Mike. We'll take the next question from Varun Gia. Varun, you can unmute and go at this.

Hello. Hi, sir. So my first question is regarding Vodafone only. Is there a timeline or something? Because we were expecting orders in February, March. So now it's already delayed to June.

So, you know, as you are also aware that Odafone News just came last month about the Spectrum relief, no lender was, you know, ready to fund them unless there was a credit on Spectrum charges which they have got the last month. So now, Vodafone is very sure that they will be able to raise funds by June end and they will raise all the orders by June end. So that's why Mr. Birla is again on board. They have already declared rule out. But they see like what you hear from news channels, we hear directly from Vodafone. So we are dependent on Vodafone. More or less as of now, communication is that by June end, we will get the rule out will start in full space.

But our numbers will, you will do CAPEX and our numbers will come in Q3 onwards, right? Even if we get in Q2.

See, if we get by June, our numbers will start coming from Q2 onwards only. But yes, Q2 will not be very high because it will also, the rainy season will also impact us in Q2. So, major numbers will come in Q3, Q4.

Okay. And secondly, our revenue in last four quarters have been flattish despite we doing some 100, 150, 200 tower additions. There has been no jump in revenues or anything.

We have seen almost 18% growth in our revenue. And with the small rollout like 100 per quarter, 18% is good enough because we are also able to do some upgrade business with Bharti Etel. That's why Etel is sustaining on 48% revenue. So, we have done almost 18% because there was no major order for any IP company across the industry.

Okay. And BSNL, so we are not factoring any orders from BSNL this year.

See, we are aware that it will come through but there is no point declaring unless we have some like from Vodafone, we have a communication that by during they want to release the order. As of now, we have not got any confirmed deadlines from BSNL. So, as of now, we are not factoring anything from BSNL.

And your full year target, you mentioned last year that you will achieve around 12,000 tenancies. So, is it, will that be achievable this year or again there will be some delay?

Right now, we are working on 5,000 tenancies which Vodafor is discussing with us. So, as and when BSN gives us some confirmed deadline, we will reach our targets. Whenever we have Q1 conference, we can have a final target for FY27. You should have a credit or good offer and BSL book.

Understood. One bookkeeping question. This loan and current assets jumped from 7 crores to 34 crores. Is it some advances? What is that? If you could explain.

Is it given to some subsidiary or it's because of loans and advances to the other activities? Pardon?

It's because of loans and advances. Yeah, but what is it given to subsidiary or who? Hope to see you again. Subsidiary for this KPEX related to towers? Yes. Okay. Thank you.

Thank you, Varun. We'll take the next question from the line of Rohan Chokshi. Rohan, you can unmute and go ahead, please. Yes, sir. Thank you for the opportunity.

Sir, just wanted to understand, is it 5,000 towers or 5,000 tenancies from Vodafone?

5,000 tenancies. Now, we can run them. Well, the major would be anchor site. So, we are not expecting major sharing sites. So, you can say around 4,000 towers and 5,000 tenancies. That's what is an ideal combination. But finally, we will come to know exact numbers only when they load up the site by demand.

Got it, sir. And, sir, can you also throw some light on what, how is the process like with Vodafone? Because you said by June, they will, is it by a tenderling or do we get the order straight away? And what kind of towers are these that we'll be placing and the KPEX for it?

Right. So, Ruan, we get the order directly since we have master service agreement with Vodafone. They don't do any tender. They directly allocate towers to all the IPs who have master service agreements with them. In terms of type of tower, maximum tower, what we are expecting would be ground-based tower 40 meters, which would require capex of 12 legs to 15 legs to capex per tower. Micro cities will have RTT of 12 meters, 18 meters, RTT, but all rural sites would be almost 40 meters, 50 sites.

Okay, sir, got it. And what is the timeline for us to place on these towers by?

See, the entire rollout of 70,000, 50,000 to 70,000 sites are planned for this financial year. So, whatever order 5,000, not 50,000, 5,000, 5,000 targets which will come to us, we will have to return for FY27 only. One to complete all the rollout by FY27.

Got it, sir. So, FI27 seems like another flattish year compared to FI26. Would that be right to say?

If we do rollout of 5,000 tower, yes, entire year benefit will get in FI28. But at least we will have a base ready where from Q1 of FI28 we get the full benefit of the rollout site of FI27.

Got it, sir. Just last one question, sir. Can you like help us understand? So, how is... How is BSNN being held up by Tejas Network? So what exactly is the bottleneck here? That is stopping us from doing more towers for them. Because if the government is so aggressive, then why is Tejas not?

Again, we are nowhere connected with Tejas. We also hear something from BSNL employees. We don't have any details of it. But whatever information we have is that BSNL is using Tejas equipment, which is an indigenous network. It is not a Nokia or Ericsson, which have been imported. And they are currently facing challenging in backhauling of these sites, along with SIM latch-on on the network. So they have some two types of SIM cards. One type of SIM card they are able to latch-on on the network. Second type of SIM card is still not able to latch-on on any 4G network of PSNN. So, they are working on this aim to resolve it. Other than that, we also don't have any details about it. Yes. Okay, sir. Thank you so much.

Thank you, Rohan. We'll take the next question from Ashwita Shetty. Ashwita, you can unmute and go ahead, please. Hello, Ashita.

Hello. Yeah, good morning. I wanted to ask a question about, Indus Towers has been increasingly using renewable energy solar solutions and green energy open access arrangements to reduce dependence on diesel generators and grid power. So, is Suyu evaluating similar initiatives because the company is scaling its tower portfolio significantly over the next few years. So, what potential impact could this have on operating costs in INR and margins over the next few years?

We are head of industry, we don't have any, we have only two DG sites in our network, all my sites are EB connected, on grid. So first thing, we don't get any major things because we don't use DG, we use only mobile DG during monsoon season, where there is a major power outage, otherwise we don't have any dedicated DG. As far as solar energy goes, we don't have, we are not using, we are not going out with solar plants right now, because RO is very high for solar, you see, we only need 5 kilowatt-car power, or maximum 10 kilowatt-car power per side, and so we have tried multiple times deploying solar, but we are not getting RO, since all my signs are measured in metros, and with a very high EBE will break it. Third point is battery bank. We are using, we have moved from VRA to lithium battery a year back. So now we are not using VRA battery, we are using lithium battery, but in terms of renewable energy, we don't need it. We don't have any DG side. All my sides are connected on power, the grid.

Okay. Another question was that management previously indicated that revenue per tower improved partly due to billing commencement on previously unbilled BSNL sites and Airtel upgrades. Could you quantify how much of this quarter's revenue growth came from activation of old BSNL sites, Airtel upgrades and genuinely new tower or tenancy additions respectively?

Well, the major revenue came from the address of Intel. We were able to do around 120 odd sites for BSNL billing, which we added in current quarter. So, in terms of percentage, if you see, around 0.5% would be because of BSNL billing, which started for around 120-125 sites. Barron's all came majorly from Intel upgrades and Odafone due to loan.

Okay, just this last question. In the last phone call, you guided for around 1000 Vodafone tasks per quarter, starting from quarter 1 FY27. Could you help us understand how much of that rollout has actually materialized till date and whether the original Vodafone rollout plan remains intact or has been revised?

The rollout remains intact. Only difference would be that instead of Q1, major number will start flowing from Q2, or actually even Q2 being rainy season, we don't expect very high rollout in Q2, but as Q3, Q4 would be bumper for Vodafone rollout. Overall, on an annualized basis, Vodafone rollout remains intact of 5,000 sites. Only thing there can be some shift from Q1 to Q2, Q3, Q4.

Okay, thank you.

Thank you. We'll take the next question from the line of Darshil Pandya. Darshil, you can unmute and go ahead, please.

Hi, thank you. Thank you, Aria. Tushar, sir, just to know what has been our average realization per tower this year? 21,000.

I have just shown in one of my slides, it's 31,080. We have reached the end of the financial FY26. We were able to improve our revenue per tower from 29,000 to 31,000.

Okay. And this year, we are expecting a

similar number or any increase in this 31,000 number? Similar numbers. Revenue per tower would remain between 31 to 32K.

Okay.

And, sir, any something on, you know, borrowings? What are we planning? This year, what borrowings are we planning to?

Can you again repeat? I just missed you.

What debt are we planning to keep on the books this year?

As of now, we have not done any financial planning because we are waiting final numbers from Vodafone and we have enough funds to rule out 3,000 sites on our internal accruals and a several million debt limit. And then when we get final Hoda phone number, we will freeze the financials plan of fund raising or debt raising. And then we will come back to you by end of Q1 or whenever we have quarterly call, next quarterly, we can declare that point of time.

Okay, understood. See you, sir. Thank you and all the best to your team.

Thank you, Darshan. We will take the next question from Guneet Singh. Guneet, you can unmute and go ahead, please. Yes. Yes.

So, we are planning to add 5,000 towers in FY27, right? So, what would be the capex per tower? And can you give a breakdown as in which quarter, how many towers can we expect?

So, see, as of now, capex per tower, right now, it seems it will be around 12X per tower because more or less we will have a 40 meter GBT, so, capex per tower will be 12X rubies. And in terms of rollout, we are seeing major rollout, Q2 should be around, major rollout will come on Q3 and Q4. It will start from Q2 and major rollout will happen in Q3 and Q4. Exact numbers we are awaiting Vodafone details. Yes, finding my entire rule of plan depends on Vodafone material plan. So, once we get the Vodafone requirement, we will share exact plans with you. In next quarter, you got it.

So it's total KPEX of 600 CR, right? Yes. So, you're saying that we would be doing most of it from, I mean, how much of it would be from debt and internal accounts?

Around 50% we'll be able to do from internal accounts plus existing debt limit and everything. For balance, 50% will work out as well when we get the final numbers from Monafone, we freeze our actual capex amount. That time we'll work out the other balance and we'll let it go.

Got it. And what is the depreciation per year for a tower? I mean, how much is a straight line depreciation?

It's 18 percent. It's 18 years. 18 years depreciation, straight line.

Got it. So, I want to understand that, what are the realizations for a 5G tower versus a 4G, 3G tower?

See, for me, it does not matter much because for me it's a tower, like 2G, 3G, 4G are all related to operator, but where we benefit is from the upgrades, so we almost get around 3,000 per upgrade, so any additional technology gives us additional revenue of 3,000 to 4,000 of this.

We got it. So, for FY27, I mean, in FY26, we had added just 300 towers, right?

Yeah, gross, gross, gross, gross, gross.

So, FY27 revenues and top and bottom line, I mean, what can we expect realistically?

See, because most of my rollout will come from FY23 in Q3 and Q4. So, most likely growth will remain same as current year growth will be 15-20%, but entire year benefit will get in FY28.

Got it. And by when do we expect to draw down this debt, Q3Q4 onward itself?

Yes. So anything can be finalized or finalized only when we get the ODA. Suppose ODA wants to complete everything by Q3, then our plan will change again. So it depends on ODA phone numbers. So you have to use one quarter time. So in the next quarter, because we have a detailed plan for the finances.

Got it. But this 5000 that has been confirmed by Vodafone, but it's

just about as of now, yes, as of now, they have confirmed us that they will give you 5,000 cents to see you. That's what we are actually, they want to give you more, but we have demanded 5,000 based on our financials available. So let's wait up to June end, where we get a confirmed official orders from Vodafone.

Got it. Got it. And okay, so they have confirmed basically that they will take this 50000 tenancy.

They have already officially declared 50 to 70,000 rollout in FY27. That's as well in all the social media and net or you can see any newspapers. You will find they have already officially declared 50 to 70,000 rollout.

Okay. Got it. Got it. Thank you very much. That's all from my side.

Thank you, Guneet. We'll take the next question from the line of Tanya Kalra. Tanya, you can unmute and go ahead, please.

Good afternoon, sir. Thank you for the opportunity. Sir, my first question is that interest costs have risen significantly despite strong operating cash generation. So why are these costs growing faster than operating earnings, and what is the management's target debt level over the next two years?

Is this question in the book? Oh, no? Oh, no. Hello, everyone, and welcome to the call. It's less significantly better.

Okay, sir. So, you had acquired Lotus Tele-Infra. So, what is the status of growth in that business and in the northern region? What are the developments?

Good morning, everyone, and welcome to the call. I love you. Around 30% of the bottom line and the top line is 30% of the top line.

Okay, answer one more question. Q4 EBITDA margins have expanded dramatically despite kind of flattish growth in the revenue. So briefly...

Yes, such. Is coming, ndr. ndr. 16 ndr. 4 ndr. ii Good morning, everyone, and welcome to the call.

Okay, sir. Thank you. That's it from this. All the rest.

Thank you, Tanya. We'll take a follow-up question from Ashita Shati. Ashita, you can unmute and go ahead, please.

Hello. Yeah, I wanted to ask that as you said earlier, you are looking for acquisition. So I just wanted to understand what approximately would be the size of it and how do you plan to fund it?

In terms of size, it will vary from company to company. As of now, we have not finalized anything, but it depends on the number of tower that company has. So, we can't tell you exact size right now till we finalize something. Funding, as of now, say if it comes immediately, then it would go through internal accruals because we don't go for a very big company. We normally go for a smaller IP companies for which we don't need to raise any funding. More or likely, we will do all accruals from internal accruals.

Good morning.

Okay, thank you.

Thank you, Ashita. We'll take the next question from Ajay Rana. Ajay, can you unmute and go ahead, please?

Oh. Yeah. Yeah. So previously the management had indicated that the data center business would emerge as a new growth. I expected to be materialized by quarter four. So could you please provide an update on the progress made in this segment?

So, as of now, there is no much progress in the data center business because we are working with multiple telecom operators. Right now, everyone is focused. See, Jio has stopped the entire capex investment until the IPO. The actor is not doing any major capex. Vodafone is surely that they want to just rule out towers right now. So, as of now. No movement on data sector business, but yes, we are very hopeful it will come down in future, coming few years, and we have, we are ready. Whenever it comes close, we will grab the opportunity.

Yes. Okay. Got it. And one more thing I wanted to ask is that in the auditors report, they have emphasized on strengthening the internal controls framework of the company. So could you please elaborate what specific measures the management would have undertaken to comply with the same?

Ajay, so see, when we say frequency, we have to almost double our site count. Right now, we have around 7000 sites and we are trying to add another 5000 sites. So based on the volume, the auditor has committed that we need to improve our internal controls so that whatever end payment is happening or billing, the automation of billing, automation of warehouses. So, we are deploying many softwares for building purpose, for rental payment, for warehouse management so that all we are doing, whatever auditor is suggesting, we are going at the same and ensuring that we fulfill all the auditor's requirements in terms of cycling internal control. Not leave any store unturned over there. We are very, as a company, we are very clear. We want to have the best internal controls in the company.

Okay, okay. Understood. Got it. Thank you.

Thank you, Ajay. We'll take the next question from the line.

Thank you for the opportunity again. So, what should be the exit tenancies in FY27?

So, as of now, we feel it should be somewhere around 12 to 13,000. 7,000 tenancies and 5,000 yet, but everything is subject to ODA phone program. So, if we get ODA phone program of 5,000, you can add 5,000 in the tenancies. So, we can clarify the Q1 and Q2.

Got it. So, in the last phone call, you mentioned that FY27 exit tenancies would be around 17,000. Right. And, uh... Total tower count would be around 13,000-14,000. So, I mean, within one quarter, what went wrong with us?

So, nothing has went wrong. Right now, I am calculating only based on the Vodafone feedback. We are still awaiting BSL confirmation. If BSL confirm us that their issues have been resolved and they want to rule outside, then again, target remains the same. But till then, we get final confirmation from BSL. We are not considering any BSL rule out right now.

Got it. So basically, I mean, what kind of communication did you have with BSNL and what, I mean, what is stopping them from the rollout? And in case they go, do we have the capabilities to add those towers also on top of the Vodafone?

As you know, we have always planned at 10,000, 12,000 new tower rollout in a year. And in terms of execution capacity, we are capable of executing any numbers on ground. What communities have got from PSN is that they want to rule out around 30,000 cents in current financial year, but they'll start to rule out only after the issues are being resolved. And as of now, we don't have any clarity on timelines by when they will start. And in terms of finances, as I said, when we get the orders, we'll keep making our financial plans and we'll ensure that we don't have any shortage of funds either way, whether it's debt, whether it's internal accruals, whether it's fundraising. But if we get the business, we'll grab it from both the hands and we'll require all the tax.

Got it. And what about the other segments? Like you mentioned CCTV, fiber project. So how are they going about?

So fiber goes along with the tower round. As and when we run out tower, the operator needs fiber for network connectivity, which grows along with the tower round. CCTV was one kind of an acquisition tactics when we tried to acquire sites which are non-moveable, which will continue as per the requirement.

Got it. So, I mean, currently what I understand is fiber is, we are procuring, I mean, we are not the ones who is procuring fiber and billing the customer. So, I mean, fiber is basically sort of a backward integration, you're saying.

Yeah. Right. So, fiber will be deployed along the tower. It's a last mile connectivity.

Got it. So, currently we are procuring it from outside, but what you're saying is that going forward, we will. I mean, can you help me understand what is the model here? And is the customer built for the fiber?

I mean, Gunit, can you repeat I was not able to hear your content?

So basically, we are the ones who put up the towers and we get paid the monthly rental. In this… We have to incur the entire cost of setting up the tower and also the fiber and the wire material used. Is that a fair understanding?

It's the same model for fiber also. We purchased fiber from the manufacturer. It's our asset. We lay it and we submit it to operator. Model is the same. Whether it's tower or fiber, we only do IT and business, which is a recurring model.

Got it. So currently, I mean, in our projects, is the fiber directly procured by our clients?

No, no. We procure fiber. Clients don't procure any fiber. We procure fiber. We rate and we sublimate it to them.

Okay. So we bill it to the client and it is on top of the 12 lakh, I mean. So how does this model work? I mean, how does this model work? I want to understand. You mentioned about this fiber driven project. So in the past also, we were doing the same, right? So what's new and why is this something, why is it a different segment? It's clubbed in.

No, no. So when we say we have three, four growth engines, right? One is a mobile tower rollout, which we do very aggressively. Second, along with tower, we also deploy new fiber. Billing happens separately for fiber. So there is a, that's where the element of billing in the name of fiber in our billing. So what is the last mile connectivity for operator in terms of fiber? Third, we also go for many other fiber when it's not as I know it's some other IP side, but operator wants, then we connect that side also in fiber. Which is again on a recurring model basis where they pay me money.

Got it. So you're saying that, I mean, previously our clients get this fiber work done from some other party, but we are trying to take this work as well.

No, not another party. They used to roll out their own fiber. Now they're not very keen on laying on their own fiber. So they're outsourcing it like a tower to IP companies.

Got it. So what kind of an opportunity is this? And I mean, what kind of revenues can we expect from this in FY27? What are the margins?

Now, FY20 is going to be very minute. As in, when we roll out, it would not be even a 2-3% of my revenue, but once the rollout are complete and they focus on quality of debt work, fiber rollout will come in a big way. That's the time where we'll be able to grab the opportunity for fiber revenue. So fiber revenue actually will get materialized in say FY28, FY29, where operators are looking for quality of network and not the massive rollout.

Got it. And generally how long does it take to erect say one tower and what are the complexities involved? How are the conversations with the landlord?

So, in terms of time, in terms of time, for ground-based tower, we need around 45 to 60 days to rule out for ground-based tower. And for RTT tower, we need around 21 to 30 days for one rule out. In terms of landlord, we have a long-term agreements with them for 10 years. We normally go for 10 years agreements with the landlord so that there is a continuity in the tower.

Got it. So, for example, if we're charging 32,000 per month, how much on average is the rent per tower that we pay?

Almost, if you see Metro CTE, we have where there is an RTT site, we have a rental of around 20,000 per month to landlord. And for ground-based tower in rural area, it would be 7 to 10,000 per month. And entire thing is reimbursed by the operator. We don't pay any rent from our pocket. We get reimbursement from operator.

Okay, got it. So that is not our cost basically.

No, that's not our cost.

And the conversation to put up the tower, is that something we do or is that already done by the operator? What? The conversation with the landlord to get to sign.

We sign the agreement. It's not done by a customer. We sign the agreement in the name of Suyok Demetrix. Got it.

So basically, you have to sign a agreement with 5000 landlords to erect 5000 towers.

Yes, and then it says Suyok score from site acquisition up to site RFI for all the passive increments is Suyok score.

Got it. Got it. And what are the gross margins per tower?

It was one.

85%. 85%. All right. Thank you very much. I'll join back to you.

So anyone who wants to ask a question can use the option of raise hand or post their question in Q&A. So, I think that was the last question for the day. Would the management like to give any closing comment before we end this conference call?

So, closing comment is only one that we want to add in this quarter that for electric billing, we want to add in the top line because there is a request and compliance of account. We have to take the IPB in the top line. So we will add in this quarter and accordingly we will finalize our account. That's one issue. Second issue, we want to tell you we are very confident about our rollout by BSNL and by Odafone. And we have already acquired, we are focusing on 10th state to complete our roll-off with a strong manner because our already sites are in Maharashtra. Uttar Pradesh is a major rollout and we another want to start Bihar also. This is the best opportunity for Suyok to work out. I thank you very much for their valuable input to us and be connected with us. Thank you very much.

Thank you. Thank you to the management team for giving us a time. Thank you to all the participants for joining us on this call today. This brings us to the end of today's conference call. You may all disconnect now. Thank you.