Suyog Telematics Limited (SUYOG) Q1 2027 Earnings Call Transcript

Thank you. Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you to the Q1FI27 post earnings conference call of Suyok Telematics Ltd. Today on the call from the management team, we have with us Mr. Shivshankar Latude, Managing Director, Mr. Tushar Shah, Business Head India, Mr. Ajay Sharma, Chief Financial Officer, and Ms. RG Shukla, CS. As a disclaimer, I would like to inform all of you that this call may contain. 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, push which will open the Q4 Q&A. Over to the management team, sir.

Hi, everyone. Good afternoon, everyone. I will be starting the presentation, followed with Q&A. So, this presentation is about Q1 FY20, which we have uploaded just a few hours back on our websites and on our NSE platform. Right now, we are showing the critical signs over here so that we can get more time for Q&A. So, like, again, our share of actors, revenue share of actors has grown by 1%. So, now, my actor revenue is around 48.1%, followed by BI, which has grown around 2%. It's at 27% now, followed by Jio, 22.6, and BSL, 2.3%. As you all know, we operate Pan-India across all the states and union territory. We have 6,100 plus SACs and 7,400 plus 10.6. So key highlight for this quarter is we started actually receiving order in mid of June, somewhere around 15, 16 June from Odafoon idea. We had declared on a exchange also that we got around 600 plus orders from Odafoon, out of which we converted 95 Towers, which is equal to 150 tenancies in month of June itself, because there is a quarter added statement. We have updated number only up to 30 June. So in Spanish, it's a 30 to 15 days time we were able to convert 95 sites and 150 tenants, which is one of the biggest achievements and we are one of the fastest IP company to deserve such numbers to order for an idea. Basis on our performance, we are getting now loading from ModaFone idea on a monthly basis, we currently have, after converting 150 tenants, we have another 700 tenants from ModaFone on which we are working, and we are trying to convert maximum in Q2. But obviously, there will be some rain in fact in this quarter, but we are trying our best to convert maximum sets from 700, which we are having right now in our head. So if you see, as of Q1 exit, we have 6103 towers with 740 state tenancies. And most of the tenancies which came in this quarter was a macro site. So a macro site numbers has grown much higher. And we did a few kilometers of fiber network in the quarter. So, you know, I had also earlier mentioned that we are working on a backup for batteries where we will be a first IP company to launch Zing battery. So just give a brief background. If you are aware, lithium prices of batteries won almost doubled in last two and a half months. The battery which was purchasing at the rate of 23,500 H went up to 40, current price is 48,000. So which is almost 50% increase in the last couple of months. And China's, and entire, all lithium batteries are imported from China, all cells are imported from China. So China has removed subsidies, rupees falling against dollars. So we are having major impact on lithium battery. This is increasing our cost, so we have fast-track our zinc battery, zinc battery is ready, it's under production right now, and we should get first batch for around 10-15 zinc in by mid of September. And prices of zinc battery is similar to old prices of zinc battery and since it's 100% made in India, it will not have any dependency of import or subsidies from other country. So, it will ensure that 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 savings which we will have in coming years when we do our capex. We will be the first IP1 company to launch zinc battery on our site in month of September. As of now, nobody has even started trials while we are in a phase of launching zinc battery on sites. So this would be one of the biggest capex saving item for us in current quarter. And it's one of the biggest hits for current quarter. In terms of way forward, you guys have seen the results of Vodafone and BSL. We have focused on Vodafone and BSL because they are the one giving us new business for next coming few years. Right now, Hector is not doing any major rollout. Rio is not doing any major rollout. Vodafone has already declared close to 45,000 sites throughout planning next 18 to 24 months. They are targeting to do 3,500 sites every month, which they have already started. And that's why we are having such a huge rollout from Vodafone idea. In terms of funding from Vodafone idea, you are aware that they have already secured 6,400 crore ka funding. And they are in a very advanced stage from SBI and Cosretem to arrange another funding of 25,000-30,000 crores. So, Vodafone is going very aggressively. We are getting a bulk business from Vodafone and we are very sure we should be able to do another, we should be able to do 3,000 additional tenancies from Vodafone and current financial year. VSN has done a big announcement before few days. They are doing 77,000 crore capex with 2 lakh site, which will convert to 2 lakh sites in next 5 years. 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, then there will be billing issues and everything. So we have kept our stand very clear on BSL. Once they confirm my billing strategy, it will start rollout for BSL. 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. But yes, there is a huge workload for IP1 company, close to 2.5% plus 50,000 from other two operators, close to three that towers are planned in the next five years. So there will be no dirt of work for any IP1 company in India. It's whoever performs better, whoever the proper funding can do a huge number of rollouts and can double their sites every year. So, now we are coming to financials. Revenue for Q1, consolidated revenue, Q1 FY27 is 710 million. We have maintained an EBITDA of 59.3%. So, when we say EBITDA, now this EBITDA is a revised EBITDA with EBITDA. As you are aware from first step, we have changed accounting policies and we have added electricity in our top line. So, earlier EBITDA, which we received was around 70% has come down to 59.3% because of addition of electricity in the top line. I will also show you comparison of last quarter and last year in next slide. In terms of PBT, we have 195 million. Net profit is again 145 million, which we have maintained. Probably there is not much growth since our order started coming from mid to June. So all the growth you will see from coming quarters and next year when we do a lot of rollout from Q2 onwards. We have a VPS of 12.37. So, revenue per tower, we have maintained, even after 10-9 quarter, we are able to maintain our revenue per tower, where again we are above 31,000, which is one of the high revenue. Now, this revenue per tower is excluding EB. We are not earning electricity in revenue per tower, otherwise it will be misleading. So, revenue per tower has been constant at 31, 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. So, there is an Apple to Apple comparison. So, you can see revenues grown by 6.1% in current quarter. If you see Y on Y, we have reached 70.9 crores ka revenue compared to 68.5 in previous quarter and 66.8 same quarter last five actually here. The total expenditure has increased because of this, there was an April quarter, we have salary, then there was a capex and everything. In terms of EBITDA, we have 420 million capita, which was 418 last financial year and 411 before last, sorry, 418 last quarter and 411 last financial year. EBITDA again remains strong at 74%. Where our pact is again, PBT is 195 million and our net profit margin is constant at 20% with the electricity cost in picture. So if you see a pact has been 2021, between 20 to 25% constantly in last four years. So I have already shown you change of accounting policy effective from first example, the reimbursement has been added to top line, electricity reimbursement has been added to top line. Because that was a requirement from GST department. And this is a comparison sheet for you guys, for an Apple-to-Apple comparison. I think balance sheet is same as 25, 526. Since it was quarter 1, there is no change in balance sheet. It is same as 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.

Thank you, sir. So 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 as well, and we'll ask on your behalf. So we'll take the first question from the line of Mr. Gunit Singh. Mr. Gunit, you can unmute and go ahead, please.

Hello, I'm audible.

Yeah.

So firstly, I want to understand more about this zinc battery project. Are we doing our own Capex? If so, how much? Or is it contract manufacturing from someone else? And what kind of revenue projections we have from this form from Q2, Q3, Q4 onwards? What kind of bit of margins?

So, first about zinc battery, we are not manufacturing ourselves. We have done tie-up with one of the manufacturers, which is JBB Batteries, who has land 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, like we are buying lithium battery somewhat, we are going to buy zinc battery from JBB. So it's not that we are manufacturing ourselves, we are going to just buy from manufacturer. But yes, you will be a first one in telecom industry to use zinc battery in next month. We are planning to do 3000 sites in current financial year. You know, our average is around 30, 31,000 per tower per month, excluding EB. So that would be, and if you take EB, EB would come to average 20, 25,000 per site per month. You can calculate top nine dollars. 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 number. But as you can derive yourself, we are planning 33,000 cents for Moda phone idea with an average revenue of 31,000 without EB, around 50,000 with EB.

Okay, and what are the benefits of this zinc battery? Will our EBITDA margins improve? Currently, what price are we buying the battery?

So, zinc, there are two, three major advantages of zinc battery. One is in terms of pricing. The HM prices have gone very high. So, for 100H, the HM pricing is right now costing 48,000, and which is expected to rise in future also. And the zinc battery will cost me around 33,000 for 100H. We normally use three batteries on every section 100H. Then it will vary up to 600H, 900H 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 charging and more backup. A major benefit compared to lithium is it's a fire resistant. Lithium batteries still have a chance of getting caught fire. Zinc battery will not have any fire, it's a fire resistant battery. And that's it. And that's the benefit of lithium battery.

So this is for 33,000. And currently, how much are we procuring battery? Right.

Now, the latest cost of lithium battery is 48,400.

So basically, this will reduce a capex. Is that correct?

Right. And it will reduce the capex and we also do some operations cost. It will also reduce the operation cost. But yes, major benefit would be on capex.

Got it. So these, for this current financial year, we only have about 3,000 extra tenancies from Vodafone or extra towers.

So see, it's not from the Vodafone, 3,000 is tenancy. Now, this is what we are targeting right now because Vodafone has as of now declared a rollout of 12,000 up to September and they may add another 18,000. 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. There is much more, many more business, BSL may come up. We hope that even reliance will open soon after IPO. So opportunities are many, huge. But as of now, on conservative basis, we are saying we will do 3,000 cents for Vodafone idea.

Got it. So, in the current quarter, we just added about, you said, 150 sites. And for Q, can you give a breakdown for Q2, Q3, Q4?

So, let's see, right now, we are planning, you can take another 3,000, you can consider 2,800 sites. Q2 would be lower, Q3, Q4 are always high for me. So, exact numbers I can look, but yes, totally, almost 35-40% happens in H1, and 60% of what I do in H2.

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.

So let's see how much we can cover up in Q2 because it's also rainy season. So like we'll try our best to achieve the best numbers in Q2. So whatever speed over is there, we can easily get covered in Q3 and Q4.

Got it. And this 3000, I mean, these are tenancies or tenancies? Okay. So out of this 3000, how many would be on our existing towers? And how many new towers do we plan to plan it?

Because we keep getting loading on monthly basis. It's not that we get loading for interior. So based on Vodafone planning, but normally it should be 80-20 ratio where 80% would be anchor and 20% would be shared.

Okay, so 80% of 3000 would be new towers that we will erect?

Yes.

Got it. And this 3000, you're saying it's a conservative figure for this year, right?

Yes.

And we don't already have the letter of intent or orders for these 3,000 that's what we are expecting.

We have master service with all operators, right? But they see their planning happens as well. So Vodafone has done right now plan to work only for 6,000 crore which they have received from HBI. So as and when they receive fund, they will start releasing the nominal. They will not release the nominal because even they need to arrange their funds back to back. So, right now, they would risk dominance only for around 7-8,000 sites or close to 10,000 sites, out of which we are targeting 3,000. So, as then, when HBI approves their next set of burns or next phase of rollout to start, we will get more sites.

Got it. Got it. All right. Uh, so basically, I mean, uh, the jump in revenue should come only from FY28 considering that because

that's the time when we'll get a full year benefit of the revenue of VI science. So you'll see margin, you'll see jump even in QC and Q4, but full year benefit will get it in FY28.

Got it. So basically, uh, 30,000, uh, plus 25,000, 55,000 into around 750,000

into the number.

Yeah. That should be the incremental. We should expect Q3 onwards. Right. Got it. All right, sir. Uh, and in terms of EBITDA margins, uh, we will be maintaining the same or have we seen any cost escalations or, uh,

We will have the same EBITDA margin with DP, what I have shown right now, which is around 59%, will maintain the same EBITDA margin for coming quarters also.

All right. Thank you very much.

Don't forget, don't forget, don't forget, don't forget, don't forget, I have to say something. If you say EBITDA margin will be the same, yes, no doubt. For the longer period, EBITDA margin will be the same. But today's future, this is our... Thank you. Okay, so that's why your EBITDA margin is shortened. Like this balance sheet, my impact has been in this balance sheet, and the loss is due to the loss of your EBITDA, so this is the point that you always consider. This is the impact of your EBITDA.

Okay, sir. Got it. Yeah. Okay, sir. Thank you very much. I wish you all the best.

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

Yeah. Hi, sir. Thank you for the opportunity. Sir, this is your 3,000 hours which we are targeting from VI. What is the confidence level that we will be getting these orders and we will be executing the same this year as well?

We have talked about 3000 sites from UI, right?

Yes.

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 key team. And based on our performance, we had a meeting with Jagbir, seeing who is there, national CTO. We met planning team and even Udaphon central team is very happy with our performance. So as of now, we don't see it. We don't 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 daily, even in training season. We have been doing 100 size efficiency, 150 tenancy in mid-June, which was rainy from parts of India. We are very confident. We have execution capacity. We have enough funds. So 6000 should not be a challenge for us.

Okay. And what is the current order book from VILA? Is it 700 tenancies or 1100?

700 plus it would be 700 and more. We have already done 150. Another 700 is my today's KT. My KT keeps increasing every day because they keep loading me signs day on, day out. So as of date when I am sitting here, it's 700 plus other than 150 which I have done a year.

Okay. And so this BSNL order, we have been targeting for past like 7-8 months. Now all of a sudden we are saying that we don't want to comment more on the growth perspective of BSN because of the delay. Can you clarify more on this? What's the reason? Are we expecting any orders this year or if again it's delayed by next 1-2 years? Anything on that side ever would well.

So, we are very optimistic about BSN as a company, but when I speak on a public platform where investors are there, what happens when we, we, see, we also come in basis on the numbers which we receive from operator. But when I call some numbers to you guys and then we are not able to ensure because of. Operator issue, it comes back to us that why you are declaring numbers and you are not achieving. BSN numbers are very high. We already have some orders in our hand, which we are not executing because of their issues with the tedious equipment. So obviously, we are optimistic about BSN. We are expecting some numbers in current year. So BSN is a clear path of two years, covering next five years, which they have declared on public perform two days back. So obviously, when a CMD of BSN declared something, it will be after a lot of planning. But let it come on ground, let them give me a confirm date by when they want to start the rollout, when will my billing start, then we will share numbers with you. It's not that we don't want BSN. We are very happy to serve BSNL. We say as aggressive as we are for BSNL also, once we have confirmation from BSNL, then the tedious equipment issues are resolved and they are ready to launch the new rollout phase. Okay.

And so basically this FY27 will

be ending with roughly 10,500 tenancy. Is that the correct estimate? Assumption?

Right. So we already have 7,000 plus, we'll add another 3,000. It will be 10,000 plus tenancy.

And what would be the funding requirement for this and how are we funding the same?

So, as of now, we have enough funds for my internal accruals. We are not seeing any major fundraiser right now. But depends if I get more order than expected, then you may decide on fundraiser. As of now, we have not taken any coronary. So, whenever right time comes, we will come back to you if there is any plan on fundraising or anything.

Okay. And we are expecting 20% bet margin for sustained this year, right? Yes, yes. Yes. So why, why there isn't a fall in a pad margin from 25% to 50%. So when you

see year-on-year, there was a VI reversal in the last quarter, last financial year same quarter, we were having a VI reversal of a bank debt provision. That's why it went to 25%. Otherwise, it will always be around 20-21% with EB.

Okay, understood. Thank you.

Thank you, Mike. We'll take the next question from the line of Divyansh Thakur. Mr. Divyansh, you can unmute and go ahead, please.

Hello, sir. Sir, congratulations on the great set of numbers. Also, I wanted to ask that, you know, you are talking about 3,000 tenancies. How much have we done this quarter and how much are we going to do and how much is the confirmed tenancies that we have?

So, see, the first thing, out of 3,000 tenants, we have already done 150 in Q1, which I have already shown in my numbers in our presentation slides, we have done 150 tenants. We are already working on 700 plus tenants, other than 150. So, while sitting too late on a call, I have around close to 850 already in my hand, and there is entitlements which are remaining in the head. 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 the way Vodafone is going aggressively, say only challenge is right now Vodafone has got 6,400 something crores from SBI and warrants. Now they are awaiting another set of finances or funds to be released from SBI and consortium. So if they are able to secure funding, then obviously 3,000 is 100% doable. And which is right now a valid possibility because Adidas Abila himself is on a board right now and he has bakery and numbers. So we don't see any challenging achieving 3000 going forward.

So, so we are pretty confident that we will be able to do 3000 this year.

Yes.

Okay, sir. And also just want a clarification on that, you know, what is this 31,000 without EV and 50,000 with EV like.

Up to last financial year, our top line was only rent and IP fees. We never used to get electricity reimbursement in top line. But due to change in GST guidance, from Q1 this year, we have added electricity reimbursement in our top line. So there was a change in accounting policies. So, when I'm showing you number of revenue per tower, it's without electricity. While my books, the number which you show, which you see in P&L and Baruchet, which is my top line, it's with electricity from Q1 numbers.

Okay, sir. Okay. And, you know, we were like, there have been news around that, you know, Vodafone Idea, BSNL both are going now aggressive as they have secured the funding. So, what is the, what is the growth outlook that we have? And also, where are we on the fund raise? I think last quarter you talked about that, you know, we might be needing money.

Right. So in terms of funding, I have already said Odafone has planned to raise 45,000 crore funding, which will roughly come up to 45,000 sites coming 18 months to 24 months. They have already said they are targeting 3,500 sites every month. Out of 45,000 crore, they have secured 6,400 crore. And they are in the final stages with HBN Consultant for another set of funds to be released from there. So Vodafone is very aggressive, they have been giving me sites, they are giving all other IP sites and Vodafone is 100% very aggressive, do not and they will actual their numbers, that's what we feel as of now. In terms of BSL, we have just seen, see they don't need to secure fund, their funds come from government, government has already annotated enough budget for BSL in last year budget itself. They have declared plan of 77,000 crore capex for coming 5 years, which is equal to 2 land sites in coming 5 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 the Tejas equipment, due to which their entire rollout has been delayed from past 1, 1 and a half year. Once they are able to control or once they are able to resolve Tejas equipment, we are very sure even BSL will do huge rollout. But let's wait and watch till it comes on ground and they start the actual rollout. Right, that was your question, right?

Yes, sir. And, sir, where are we on the fundraise part? You had mentioned last quarter that, you know, as

of now, we are working on 3,000 currency, where right now for next quarter, we have enough funds with us to roll out the number of sites which we are targeting. But as if I get more order, if we're able to crack some things, if we're able to get more orders from VI or from ESL, we will decide. As of now, we have not decided. Whether we want to go ahead with fundraise or when will we go ahead with fundraise. So whenever item comes, we'll surely come back to you guys for fundraise.

Okay, sir. So basically, our whole plans depends on how Vodafone, Idea and BSNL executes their plan. If there is something that goes north for them, then we might be feeling the pressure too, right?

That's true for any company, because all companies are dependent on their customer, whether it's a FNCD product, if the customer don't buy product, obviously, the company will only do products and not be able to share it, right? So Vodafone, Idea, BSNL are customer. Yes, we are dependent on our customer, far or not.

Okay, sir. Thank you. Thank you so much for answering my questions.

Thank you, Divanj. We'll take the next question from the line of Sakit Kapu. Sakit, give me an unmute and go, please.

Yeah, namaskar, sir. As I think so, Dusharji 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, I ask our managing director and get a very small understanding that actually over the last 18 months or two Two years post this fundraising exercise, which because of some reasons. We could not execute things have just turned turtle down. And when things are not. In terms of growth and reporting increase in growth and revenue as well as profitability. So these two aspects of BSNL, the Tejas issue, the Vodafone funding, how are we aligning our business prospect for this current year and what should investors conservatively should also look ahead for this year in terms of profitability? Suppose these two issues do not play out positively for the company, then what should 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 be able to take this quarter as a good quarter. So if you could just clear my doubts, sir, I would be very helpful. It will be very helpful.

The last two years and all these things, what happened? Thank you very much. कि अगर आप देखेंगे मार्केट में जो भी लोग काम ले चुके थे उनका बैक बैलेंस और एवरीटिंग एस गौन इन रॉस हम लोग बड़ा कौशियसली प्लान था कि हम रूरल में करेंगे बाद में उनका प्लान शिक्टों के बॉंबे दिली में आ जिसमें हमने नियर � We have about 100 sites, we have targeted us to achieve. My name is Raha Saval Sir, this is the growth of 2G, 3G, 4G, and 5G travel. वो ट्रेवल में 3G टोटली बंद हो गया और 4G चाली हो गया और तूजी का अभी भी कस्टमर अबेलेबल है तो मैं यह बोलना चाहता हूं कि कमपनी का प्रस्पेक्टिव नॉट ओनली वोडाफोन बीसनल और जिवो भी साथ साथ में आया है एरेटल का रोलाउट भी कम है औ अपना कॉस्टिंग याई इन्वेस्टमेंट निकालने के लिए उनके पास सोर्स है थी जो प्राइजिंग बढ़ा के वो लोग अपना थेविकों का इन्वेस्टमेंट रिकोवर कर सकते। 2nd point हम लोग बड़े क्लियर है BSNL और वोड़ाफोन के लिए और BSNL को हमने थोड़ी देर के लिए स्टॉप इसले किया जब भी तुशार बता रहाता आपको कि हम BSNL का जब तक हैं उनका CMD लेवल या जो भी मिटिंग से उनके फंट सालोकेशन के बाद उनके बाद उनका र Thank you, everyone. So, coming to the real point is that, हमारे पास आज की देश्ट में जो ओर्डर है, वो पूरा के पूरा, वी आईल का ओर्डर है और वी आईल का ओर्डर में हम लोग पुरा कॉन्पेडेंट है क्योंकि उनके प्रिफर्ड पार्टनर है में से हैं और उन लोग हमको लॉकिंग भी 10 साल का दे रहे हैं जो जो फंड्रेजिंग और यह इस्व है जो अब तक हमारे फुट के पैसे जब � तो कॉर्टर वाइज आम लोग अगर 700 करोण का चलेंगे तो 400 करोण का नेट मतलब टॉप लाइन होएगा और बॉटम लाइन आम सोच रहे हैं कि 22-24 के आसपास ऐसा ग्रोव करके जो 15 अभिया एवेलेबल है उसको चार-पांच अजार-जार साइट अगर आम अगले तीन कॉ and up this is our clear-cut strategy.

इसमें से एक पॉइंट मुझे पूशनत आप से आपने का कि आप सौ करोड का रिवन्यू का कौर्टरली टार्गेट करते हैं जो अभी साइट करका हाँ सर् revenue. Yes, you have 10.00000. To be received my वोट से देख सकते हैं और साथ आपने कोई डिवरेंट के विशे में बताया था किस कंपणी ने डिवरेंट आपका पॉइंट कर गया है

वोड़ा फॉन का जो दिविडेंट आया ना सर्फ 14 रुपय ओड़ा फॉन के

लॉस्मेकिंग है उन्होंने डिवरेंट लिए दिया है �

Thank you. Oh, I'm a great investor, Smith, call us. Industry.

Industry. वापस क्यूंब मैं आता हूं बड़ सर इंवेस्टर तो

आपको नमबर दिखाने के लिए तो प्रेमेंट का पेमेंट का भी इसूस है तो वह इस्टो में हमको तक्लिफ होएगा ना सर अधर एक तो सिंपल लॉजिक इसका है कि गवर्मेंट जो एनसर प्रॉपिट के लिए कंपनी ने बना है पूरा गवर्मेंट के फंडिंग पे चल रहा है तो उनके उफिसर्ट लोगों को profitability बनाने का कोई दिबाद में आता नहीं है लास्ट येर मिनिस्टर साबने अनॉस्मेंट किया कि आप रूरल में करेंगे और बाद में डायवर्ट होगे आरबन में मौंगय और दिल्ली अब देल के पास आगे तो हो सकता है सर उनका प्राइ�

But I think they are running their show. That's all.

Thank you.

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

Yeah, am I audible? So, 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 3 to 4 years? And 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?

On a overall portfolio basis, my tenancy is around 1.2. We are not tying 2x as you said. We are targeting to reach 1.8 in coming 3 for us, so it should be a very recent risk for industry. Now, to reach 1.8, see, whenever we do more of a macro side load up, there are very high chances of coming 2 or 3 tenancy, while HPS or small cell set will always have 1 1.1 tenancy. And now as a 10 is going, operator are more keen on doing macro side load up. So if you say, after 150 tenancy, which I did, all were macro side. And that's why if you say I've done 95 tower, but I've done 150 tenancy. Which is a very good ratio of 1.8, the Q1 rollout. So yes, we are very confident by end of FY28 or the 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. And in terms of say, I can, rather than putting EBITDA PED number, I'll just say, what are my ROI? So when I do a site with single tenancy, I get recovered in three and a half, four years. But when I come, we come to the two tenancy, it goes down to 24 months and three tenancy goes down to 18 months. So yes, there's a drastic improvement in EBITDA PED also when I do more of a sharing size. So yes, there will be jumping PED percentage, EBITDA percentage when we do more of a sharing tenancy. And we should be able to achieve 1.8 in FY29 early quarters.

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?

So, all the MSAs of all the operators are the framework in a fixed commercial. See, basically, MSA says this is the framework, and these are the charges, what you can charge me for X type of site. Under MSA, they will keep loading me site on daily basis across India. It's with the all operator, but it's BSN and Actel, Jio. No MSA has been closed and like I will give you only thousands out of thousands. It's a blanket MSA. You can do any number of sites what you are capable of.

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

Right now, we are seeing we want to take Odafone to 30, 32 percent. We are in around 32 percent of revenue from Odafone once we are able to do this 3000 or more checks from Odafone.

Okay, thank you so much.

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

Am I audible?

Yeah, you're audible.

Yeah. So the company has increasing highlighted fiber and a fiber for strategy. So what percentage of FY27 revenue will come from fiber and what EBITDA margin does fiber generate versus towers?

So, Rakesh, Rakesh, basically EBITDA margin, since it's an IP1 model, we have a similar EBITDA margin, so not with the EBITDA margin, which was there without EBITDA, which was around 70%, which is generally the same EBITDA margins for fiber. In terms of value, it will be very marginally. Right now, we are focused on more often micro sites, and more and more sites are coming into rural villages, where they go on a microwave rather than fiber, and ODA phone don't have a very strong Fiber network on ground like GU and ETL. So most of the sites are coming on microwave. So as of now, we don't see any major jumping fiber percentage, which would be close to five to eight percent of my total revenue. So it will remain same as it is. Yes, jump would come in coming years where we do more of an FTPH, where we do more of a fiber fall operator. But in current FI27, there will be no major jump in terms of percentage from fiber revenue.

So it's fiber and asset. Have you recurring revenue business like towers or is it predominantly

I put my own fiber. I put invest in fiber and we get recurring revenue from operator. My hundred percent of revenue is recurring revenue on IP1 model.

Okay. Thank you, sir.

Thank you. We'll take the next question from the line of Varun Gia. Varun, you can unmute and go ahead.

Hi, sir. Sir, my question is regarding the Vodafone Towers. In last quarter, you mentioned that we will achieve 12,000 tenancies by the end of the year. And now you mentioned that it's around, target is around 10,500. So what has changed? Like Vodafone is also the processes and delays or why have you cut the additional 1,500 tenancies in a quarter?

I have said that 3,000 number is on conservative basis, on the basis of 6,400 crore, which would have been secured from SBI out of 45,000 crore, which is high. So, as and when Vodafone comes with the clarity of Gorora, we will keep adding numbers to our target. So, 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 declare confirmed rollout of 30,000 sites, once they get additional for the approval from SBI, we will increase our target.

When do you expect that to happen?

See, last, I think, before few days, Mr. Bilas himself stated, sorry, Abhijit Kishwara himself stated that they are on final stages and they are expecting additional confirmation from SBI in coming few months. So whatever they say, what do you hear? I hear the same thing from them.

Okay. And all additional towers, we see the average rental to be around 31,000.

So, 31,000 is the enterprise IP fee. Yes, it will be same. Revenue point tower will be around 31,000.

And bad margins, we expect around 20% to stay at these levels.

Yes, 20%.

Okay. Thank you.

Thank you. All those who wish to ask a question may use the option of praise and or alternatively can pose the question in the chat box as well. We'll take the next question from the line of Anubha Jain. Anubha, you can unmute and go ahead, please.

Hello, sir. I'm audible.

Yeah, you're moving.

Yeah, so my question is that, what is the current status of the 189 BSNL site, whose billing was pending as of the last call, and have they started contributing to the revenue?

So, if you see when we started BSL project 1-1 and Affair Bank, it was close to 1000% which was pending for billing. Right now it's 186. So, in this quarter, we have not added anything because the busy results of the Tejas issue. But yes, 186 and billing is still pending, which we are expecting now. The news which we got before few days is that more or less the Tejas issue is in control and should be resolved soon. So, we can see in Q2, we should be able to start revenue for 186. As it says.

Question is, question beyond F527, once the bulk order of Vodafone 45,000 site program is allocated across IPs, what is the realistic annual new tower edition run rate so you can sustain? And how are you positioning for next wave of 5G private networks and rural coverage?

Can you repeat? I missed what you said.

Okay, sir. I will repeat it. Looking beyond FY27, once the bulk of the board of 45,000 side program is allocated across IPs, what is the realistic annual new tower addition run rate so you can sustain? And how are you positioning for the next wave?

So, if we go above Fy28, we are in another 5000 sites from Budaphone. Out of 45,000 sites, we assume we will do around 8,000 to 10,000 tenancies from Budaphone in 2 financial years. So, this year, we are targeting 3,000. Next year, we are targeting 5,000 from Budaphone based on our visibility, finances and everything. And Balci, there's no point, you know, saying some numbers after FY20 because telecom industry is very dynamic. It keeps changing their plans every now and then. Right now, we have visibility of 3000 plus 5000 signs from URAF.

Okay, sir. Thank you, sir.

Thank you. So I think that was the last question for the day. So would the management would like to give any closing comment before we end this conference?

Yeah. Thank you very much. All are attending the investor conference. We are very confident over our work. And rollout in the last 10 years, we have achieved 7,000 hours and another 3,000 hours, we are in a well situation and well equipped with all our staff members. So we only assure the market that we will sustain the growth. What last two months, two years stagnant is there, we will grow fast from this year. Thank you very much.

Thank you, sir. So 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. So thank you, everyone. And this brings us to the end of this conference call. Thank you. You all can disconnect.

Thank you, everyone.