Servotech Renewable Power System Limited (SERVOTECH) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Servotech Renewable Power System Limited Q1-FY27 earnings conference call. 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 an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raman Bhatia, Managing Director. Thank you. And over to you, sir.

Thank you. Good day, everyone, and a very warm welcome. It is a pleasure to have you join us today as we discussed Servotech Renewable Power Systems Limited Performance for the first quarter of FI 26-27. This quarter marks a strong beginning to the new financial year and reflects the steady execution of our long-term growth strategy. We have delivered robust financial performance while continuing to strengthen our position across the renewable energy value chain. Our focus on expanding manufacturing capability, advancing indigenous technologies, and delivering integrated solutions across solar. Battery energy storage system and EV charging infrastructure and EV chargers manufacturing has helped us to capitalize on the growing opportunities emerging from India's clean energy transition. During the quarter, we secured a major rooftop solar order from South Central Railway, signed the MOU with the Government of Haryana to expand our manufacturing capacity in the state. We secured one more order for a 900 kilowatt BESS from UP and we received the BE 5 star rating for our 60 kilowatt and 120 kilowatt and 240 kilowatt is already in process. Together, these wins reflect the continued strength of our order pipeline and our ability to convert opportunity into execution as we build a future-ready clean energy ecosystem. And one more thing I want to add here, we are increasing day by day our channel partners across the India. Now we are penetrating in South India, North India, Northeast India, and many more areas. I am pleased to share the financial highlights for the first quarter of FI 2627. Looking at our standalone performance, the company delivered strong year-on-year growth across all key financial parameters. Total revenue grew by 66.31%, reaching 208.1 crore compared to 125.14 crore and Q1 FI 26. EBITDA increased by 62.85% from 23.18 crore to 47 crore. Standing at 11.10 crore, these results. And Pat grew up by 47% standing at 11.1 crore. These results reflect improved operational efficiencies, discipline execution, and sustained demand across our key business segments. On a consolidated basis, we also recorded a strong quarter. Total revenue increased by 57.69% to 215.29 crore compared to 137.17 crore in the corresponding quarter last year. EBITDA witnessed an impressive growth of 93.35%, reaching 20.94 crore, while profit after tax stood at 7.95 crore, registering a growth of 74.151% year-on-year. These results reflect the collective efforts of our team, the confidence of our customers and partners. And the continued execution of our long-term strategy. While we remain uncreate by the momentum, we have built our focus continue to be disciplined growth, operational excellence, and creating sustainable long-term value for all the stakeholders.

Thank you.

Hello.

Should we begin with the question and answer session now?

Please.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Atul, an individual investor. Please proceed.

I'll help you.

As there is no response, I'm taking the next question from the line of Darshil from Crown Capital. Please proceed.

Hello. Good afternoon, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results, sir. Sir, just wanted to understand like in terms of our outlook, what do you see F527 panning out as, sir?

I have a question. Can you repeat your question?

Sir, we have in the last year compared to the last year around 50% growth. So, what do you think FI27 in terms of revenue and margins?

So, we are going to better do this year. And the first quarter is our self-explanatory. We will be better this year. No doubt.

Yeah, sir, but what can we do? Because force is a very big jump. If our level can continue on this level, what do you think, sir?

Sir, the whole question is that we continue. We are doing this. Our distribution channel and network. And the new product lines, manufacturing, which we have invested in last year, in the capital, in the machinery, plant, all of that will be the outcome of that. So, that's what we are going to do.

Okay, okay. And, sir, margins, what do you think? I think you had 10% of FI26. Now, there will be higher momentum. So, in terms of margins, how will you stay this year? A lot of relief.

Sir, margin, I've said that the margin is not very important for us because it will come and come and come. When you work and work, then the margin will come. But the most important thing is that you deliver the customer's needs. If you focus on the margin, then the margin is by-products. This is the last 5-6 years. If you look at books and financials, then you will understand. So, I think that as much as we build a quantum, it will be better and better.

Okay, fair enough, sir. And sir, what does your order book keep?

The order book is a very big thing that we have in the government and the projects of order, which you can confirm the purchase order, the type is very small because the game is overall. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call.

Okay, okay, fair enough, fair enough, sir. And, sir, like now, it's good enough to keep your seasonality, something that H2 is better, H1 is better, something that you have to do.

Sir, it's like this. It's always like H3, H4 is better than H1. It's always, if you look for 5 years, if you look for 10 years, you look for 10 years.

Okay, okay, fair enough. Yeah, that's it from my side. Thank you so much. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and run on their touchtone telephone.

I repeat, anyone who wishes to ask a question may press star and run on their touchtone telephone.

The next question is from the line

of Pradeep Kumar, an individual investor. Please proceed.

Good morning, everyone, and welcome to the call.

Yes, sir, we are

already installed and we are already doing it very early.

Thank you. Okay, sir, you can tell us about the details of the product.

This is a financial call. If you look at the details of the product, you can see everything on the website.

Okay, okay. Thank you, sir. Thank you.

Thank you. The next question is from the line of Satyam Chaudhary, an individual investor. Please proceed.

Hello. Yes. So my question is regarding first about best, like how much demand we are looking into it and what kind of expansion we are looking to do in that particular segment?

What are we talking about?

B-E-S battery packs.

In the battery packs, which we have installed in the production, our capacity has fulfilled. We don't have to do the demand. We are going to the next phase for our production capacity. And we have a lot of hope, and we have a new plant set up, because we also have a new plant with the Haryana government, so we have a new plant, more quickly, and we are starting to build and structure.

Okay, so the first step for FI27, how do you expect this particular segment?

I will not commit to this, but I will tell you that the scenario you are seeing, the scenario will be better before the first of all.

Okay. Regarding like EV, the role-out is still happening, the government is still doing a lot. E-bus is still in the role-out. But there are a lot of key players. The competition is growing or the demand is sustainable?

Sir, we are working on the charges, and when we talk about the charges, we come to the charges, and we are working on the list, so no wrong, we will contribute to it, and we will be working on it.

Okay, sir. So, debt, will this year increase or reduce your chances?

No, debt, sir, the company will grow, the money will be. So, if you want to go to the market, then you will go to the debt, but if you want to go to the range of debt, then you will be able to increase your profits and increase your network so that we will maintain the debt-equity ratio.

Thank you. Thank you.

Thank you. The next question is on the line of Darshil from Crown Capital. Please go ahead.

Thank you so much for asking me a question. Sir, I would like to ask you a question that you are bringing up the new capacity. What time will you remain? When can we expect that it will be complete?

Sir, the battery, which is our capacity, which is our capacity. The current capacity will be double. Capacity will be in 6 months, and we will be in 31 May 2017 and 10X capacity will be in 2 years.

Okay, so 3X by the end of the year and 10X upon the 2 years. We have battery here, BSS's talk. Yes, sir, I understand. So, you have such a tailwind in this segment, so you have a doubt about competition, because 10X is a big capital jump.

No, 10X is a capital jump. It's not a production capacity. It's not a capital 10X. It's a production capacity 10X. It's a difference.

Yeah, sir, sir, what capital will be in this regard? What can we expect returns to our customers to help us?

In this regard, what we are working on, battery and energy storage, it's a lot of help to better our EBITDA. And because our captive consumption is a lot more, and we focus on big plants. So, the rules are good and our investments are not big. Our investments have declared, that will not be much more than the investment.

Okay, okay, okay. Okay, sir. So, sir, if you go further, if you say that in the next two or three years, what do you see in your company where you are going to be? Because you are thinking of the capacity increase in the capacity.

Sir, I am going to ask you one thing. You will study in the next two or three years. 5 years ago, where was the company? And how much difference do you see? But what you see is the next 2-4-5 years ago.

Okay, okay, that's really great, sir. Because I think 5 years ago, we've doubled it for 300 years ago.

No, sir, 5 years ago, 300 years ago. Sir, we didn't have 300 years ago. That's why you were welcome.

In 2023, sir, 300 years ago. Sir, I've told you 5 years ago, sir. So, sir, okay, 5 years ago, sir, 20 years ago, sir, so, sir, 87, then, next, so, your own plan, sir, we're

going to work in the country.

That's great to hear, sir, sir. Thank you so much, sir. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star N1 on their restaurant telephone. The next question is from the line of Neha, an individual investor. Please proceed.

Hello.

Hello.

Congrats, sir, on such a great result. I just wanted to know, like our last three months, our share prices have been very fluctuated, but the results have been really great. So, can you shed some light on this? Thank you so much.

Thank you.

Thank you. The next question is from the line of Satyam Chaudhary, an individual investor. Please go ahead.

Hello. Hello.

One more question I have. You have the production capacity overall. How much of the squadron utilization has already been?

How much of the utilization has been? The capacity utilization is different, but if you ask the average, it's 50-60%.

50-60% of the capacity utilization.

The capacity is bigger than the

capacity. I should be interested in the current capacity, right?

Sir, current capacity is fully utilized, and the new capacity is built. That's how it works.

Okay, you can see the target of 23% capacity.

Yes, but you can see it in 100 minutes, because there will be a new capacity.

No, it will be a new capacity.

Yes, absolutely. So, it will be used to be used.

Okay. So, the capacity of all the fragments are in average.

Thank you.

Okay, okay. Thank you very much.

Thank you.

Thank you.

A reminder to all participants, anyone who wishes to ask a question may press star and one on their restaurant telephone. I repeat, anyone who wishes to ask a question may

press star and one on their restaurant telephone.

The next question is from the line of

Atul, an individual investor. Please proceed.

Hello. Hello. Hello, can you hear me? Yes, tell me.

I know that you have a company for entertainment. It's a profitable company.

Which company?

For entertainment.

Thank you. Thank you.

Thank you. Thank you.

A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Muskaan Bansal, an individual investor. Please go ahead.

Good afternoon, sir.

Good afternoon.

Sir, I have a question about PM Souris-Ghar Yojna. What has the response to the servo tech now? And is there any good orders for this?

Yes, absolutely. PM-Siriya Khari Jojnar Me, हम जतना भी ठेमर्टिबूशन को इस्पार्ट कर रहे हैं वो इसी दिशा में तर रहे हैं. और उसकी वाई से अच्छा रिसपॉंज है,

और मार्केट अच्छा रिसपॉंज कर रहे हैं ते.

Thank you sir.

Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchtone telephone.

A reminder to all participants, anyone who wishes to ask a question, may press star and one on the attachment telephone.

The next question is from the line of Neha, an individual investor. Please proceed.

So, sir, I just wanted to ask that Servotex Sports is not profitable at this point. So, what kind of business segments that are there that you are handling into it?

Sirvotec Sports event manage כ יג Sirvotec 기 کمپنی اور اس طرح کھی اور بھی کمپنیوں کے مارکٹ ایٹیوٹی کو دیکھتا ہے، ایوینٹس کو منیج کرتا ہے اور کرکٹ ٹیم فرنچائز کا اعنر ہے اس کے علاوہ ڈریم لیگ آف انڈیا کا اعنر ہے جن سب کو لیکے چل رہا ہے تو ابھی اس کے اندر جو آئی بی کریئٹ ہو رہی ہے اس سب کے اندر بھی انبلٹس پو رہی ہیں تو اس لیے آپ کو پروفیٹیبل نہیں دکھا ہے In the long term, it will become profitable.

Sure, Phil. Okay. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Gaurav Singh, an individual investor. Please go ahead.

Thank you.

So, basically, a particular quarter, the results are very good. So, congratulations for that. So, after that, sir, you have a lot of orders in the recent quarters as well. So, in this particular quarter, what will you share the orders in which the revenue is agreed to?

Good morning, everyone, and welcome to the call. Right? So, this is the case that you see in the call, it's the order. Currently, the order has started to work with the current order. So, you will be able to find the order.

So, as we are talking about the other quarter, PME Drive, now we have to go through the administration. Three-wheelers and CNGA and Petrobras. So, PME Drive, if we are talking about PME Drive, we will have to go through the server tech.

Good morning, everyone, and welcome to the call.

Thank you.

Okay. So... Thank you.

A reminder to all participants, anyone who wishes to ask a question, may press star and 1 on their touchtone telephone. I repeat, anyone who wishes to ask a question, may

press star and 1 on their touchtone telephone.

The next question is from the line of Satyaan Chaudhary, an individual investor. Please proceed.

Sir, actually, I was going through the PPT which you have provided. So, if you have the production line, your current capacity will not be mentioned.

Yes, tell me.

I'm going to ask you, what you have provided,

you don't add the PPT, you don't add the PPT, you don't add the PPT. Sir, sir, I have 5 minutes before this question. We are utilizing the current production of the 50% of the current production.

I am utilizing the capacity of the capacity of the current capacity.

Sir, some time will take. We will give all the data to what we can publicly give. We are working on that model. Thank you.

Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their restaurant telephone. I repeat, anyone who wishes to ask a question may press star and 1 on their restaurant's telephone. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.

Thank you all for your insightful questions and for taking the time to join us today. We truly value your continued trust and engagement with Servotech. As we move ahead, we remain committed to strengthening our capabilities, expanding our technology portfolio, and pursuing growth of originality with a disciplined and long-term approach. India's clean energy transition continues to present significant opportunities and we believe ServoTech is well positioned to contribute meaningfully. Though innovations, manufacturing, excellence, and customer-centric solutions on behalf of the entire ServoTech team, I would like to thank our shareholders, customers, business partners, and employees for their continued confidence and support. We look forward to engaging with you again in the coming quarters. Thank you once again and have a wonderful evening. Bye.

Thank you. On behalf of Servotech Renewable Power System Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.