Exicom Tele-Systems (NSE:EXICOM) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Exicom TeleSystems Q1 FY 'twenty seven Earnings Conference Call hosted by Monarch Network Capital Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. This conference may contain certain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict.

0:49 I now hand the conference over to mister Rahul Dani. Thank you, and over to you. Thank you, Ananya. Good afternoon, everyone. On behalf of Monarch Capital, it's my pleasure to host the senior management of Exicom TeleSystems. We have with us mister Anand Mahata, managing director and CEO of the company, and we have mister Suraj Khanna, CFO of the company. We will start the call with opening remarks from the management and then move to Q and A. Thank you, and over to you, sir. Thank you, Rahul. Good evening, dear shareholders. This is Anand Panata, CEO of the company. Let me take you through briefly the results of quarter one fiscal twenty twenty seven and the management presentation. So the overall performance on a standalone revenue rose by 57% year on year to INR237 crores and our EBITDA more than doubled to INR21 crores, lifting the EBITDA margins to 8.8%.

1:51 On a consolidated basis, revenue grew 61% to about INR $3.31 crores and the EBITDA loss narrowed from almost INR 40 crores in the previous in the quarter last year to about 22.5 crore loss in the current quarter. I understand that while we grew our revenue, but the profitability is still not in black, But my confidence comes from both the businesses delivered and one, which is more customers. So today, we stand with a much more diversified customer base compared to any other previous quarters before, more geographies with the focus on exports and a very strong order book and commitments from our entire organization, which can deliver a strong result through fiscal twenty twenty seven.

2:54 On Tritium side, which is a big investment of ours in our DC fast charging company based out of U. S, for the first time, the bookings passed north of $20,000,000 It used to be in the range of $10,000,000 every quarter. So the bookings have doubled. So have the revenue to about 10,000,000 last quarter and sorry, 10,000,000 this quarter. We are in a phase where our latest products including TriFlex, DC Flex, GridFlex are being put under trial by various customers and these trials are in mid stages to advanced stages, which will be unlocking double digit large million dollars order through the course of 2027 through the course to deliver in 2027.

3:56 Next page. Exicom is a company in middle of energy transition. We operate in telecom. We operate in battery energy storage systems, which connects renewable energy to the point of consumption. We operate in electric mobility via our EV charging business. And there are few megatrends which are driving this change. There is new technology, which is being invested upon, particularly to do with electrification across grid as well as electric mobility. There is increasing fuel prices due to geopolitical situation as well as supply chain disruptions.

4:45 Countries are prioritizing energy security. Countries are shifting away from fossil fuel for achieving energy security. On the telecom side, there is huge rise in data traffic moving towards five gs networks and taking telecoms high speed telecom communication to underserved regions across the world. For example, in India, high speed communication is being taken to Panchayat and smaller towns, which were not connected with high speed Internet earlier. And these megatrends are driving the change in our business and near term outlook of our business.

5:34 Now moving to business update in Critical Power segment. In Critical Power, we achieved a revenue of INR177 crores, which was 73% higher than quarter one fiscal twenty twenty six. On a sequential basis, the revenue dropped by 11%, which happens as in most of the industrial business Q4 tends to be the strongest quarter as customers look to scale deployments and exhaust their budgets. The key highlights of quarter one were across different categories of customers. In the private sector where we work with India's leading telcos as well as tower companies, we entered into supply agreement for power systems and batteries with one of the largest tower companies and this is going to be a continuous business.

6:33 Not much of the business was done in Q1, but the business engagement was inked and this is going to show results in the subsequent quarters. We also secured large DC power systems order from a leading Indian telco worth INR85 crores and more of these will follow in subsequent quarters. Some of these large orders, the margins were offset by rising ForEx and commodity prices, but due to large volume, we were able to offset some of these cost increases. On government side, we are supplying to system integrators to execute one of the most ambitious fiber connectivity projects by Government of India, which is BharatNet.

7:28 We supply multiple products in this project, including smart enclosures, hybrid power systems powered by solar and lithium ion batteries. We have 60% share of business in this project based on the system integrators we are working with. And while due to monsoon, the project was slightly slow, but we are still delivering the number of systems, which is making this to be one of our highest revenue contributors in quarter one and even going forward. In terms of exports, our key markets of Africa, Middle East and Southeast Asia delivered export sales of roughly INR 15 crores in the quarter, which is about 8% of our overall sales in Critical Power.

8:24 And there has been some good new order booking, which makes us hopeful of better than expected export sales in FY twenty twenty seven. Our target is to get the export sales to nearly double of 8%, which was achieved this quarter to roughly about 15% of critical power sales in a year. Not just some of the big tower companies and telcos, we also added multiple small customers in the long tail list for their DC power systems requirement and had more than 10 BSS deployment in the commercial industrial sector, which is giving us good operating knowhow and ability to scale this business in second half of fiscal twenty seven.

9:18 Our order book as of today stands at INR 3,000 crores in Critical Power, which gives us long term visibility to be able to execute and optimize our operations in a way which expands margin to the maximum possible. Q key future opportunities on the next slide. So in quarter two, we have already won some more orders in the DC power system and battery space. These are for the customer where we had some wins in Q1 and further expanded our order intake in quarter two.

10:09 In BharatNet, the ambitious government program that I was talking about, we already have INR700 crores of open orders, which is going to be then followed by almost INR800 crores service order over the next ten years. Our target is on strong execution here. We also won Phase II of BSNL led program to put telecom infrastructure in some of the underserved border Indian border region. These are again awarded to large system integrators with whom they are tied up for business. We expect almost 2,000 sites, 2,000 towers to be allocated to Exicom based on the conversations we are having with the contract value of somewhere between INR 90 crores to 100 crores.

11:03 And as I mentioned before, with India's two top tower companies, with one of them, we have already started supplying batteries and power system on large scale, which effect of which you will see in our revenues in quarter two and onwards. And from quarter four, we also expect to start supplying lithium ion batteries to a large tower companies. That's most of that will only come in the last quarter of the current financial year. So point is on a strong order book, we see momentum towards order booking in current quarter as well as quarter three and quarter four to keep the pipeline quite robust.

11:55 In Critical Power, there are five forces, which are redefining how operators buy side power. This is the next slide. So first, five gs VTS stations are much heavier loads and they demand modular and expandable fuel power. So the system has to be very modular in terms of putting more power in it or connecting it to solar and we design system keeping this architecture in mind. The second main forces, battery technology changing from lead acid to intelligent lithium, where Exicom plays a major role. Third is grid and generator based energy is being converted to hybrid energy. Telecom sites are increasingly being powered by grid, solar, batteries and a little bit of generator.

12:58 Lastly, instead of treating telecom side as a passive side, which spurts out alarms in case things are not working correctly. That is transitioning to intelligent fleet management. So, you know, there are so many sensors at the site, so do our products, which send a lot of data both, you know, to the network operating center and to the cloud to not just give alarms, but to predict, to do preventive maintenance and enable fewer sites with it. So every product that we make has to have this connected intelligence to be able to serve the modern telcos.

13:51 And that's where the first growth vector for us comes from. It is to selling to global telcos and tower cores with this connected intelligence. In terms of current progress, we are well positioned here. Overall revenue is on track. As I explained, large orders from public and private sector in India received pace of exports has to increase. As I mentioned right now exports are about 8% of our revenue, which we want to increase to 15% within this financial year. The second growth factor is BESS. Again, for our shareholders, we added commercial industrial best system, which are usually zero five megawatt hour or smaller.

14:37 I mean, can be bigger, but most of the deployments are under zero five megawatt hour. We are not operating in utility scale best. And the reason is that in solar plus storage for some of these commercial industrial areas, there is ROI viability, there is volume and we are solving the real customer pain point of wherever they are trying to deploy this storage solutions. Today, we have about 15 megawatt hours of orders in hand, which are worth roughly INR 20 crores and another INR 45 crores or 34 megawatt hours of orders in advanced pipeline. There has been some disruption of supply chain, especially in the battery materials and the batteries in commodity pricing, but those have settled down now and further supply chain has restarted, which will allow us to execute this backlog.

15:41 Third, exposed I already spoke about. Next page is starting of our EV charging business segment. So on Page 11, what the data shows is that industry is at a pivotal point in EV charging. For the first time, we had nearly 31,000 registration of passenger car, which is the highest number till date. That is the resultant of lot of new launches across Varuti, Tata, Mahindra, some of the luxury car makers. There were launches in the commercial vehicle segment, especially in the smaller form factor SUVs.

16:31 And there were also intense participation in EV charging infrastructure deployment by companies such as Mahindra, Maruti and Winfast. Because of all that, our stand alone revenues grew 15% from INR 53 crores to about INR 61 crores. Sequentially, it was a dip. Again, quarter four is not comparable to quarter one, but some of the infrastructure build out followed the car registration and we are hopeful for continued growth in this segment based on overall vehicle sales that the industry is seeing.

17:20 Another industry slide on Page 12. In terms of passenger EV in Q1, were 85,000 almost 86,000 registration or 1,400 for buses and 6,500 for goods carriers. And this means that Exicom from its customers will have continued demand for AC charger orders, not just from the OEMs, but even from e commerce channels as well. And this is our standard product, which we obviously continue to evolve based on technology from time to time, but it's a high scale manufacturing product, which we supply to India's top OEMs.

18:11 Rise of goods carriers and electric buses also means we will have increased demand for high power chargers such as two forty kilowatt, one eighty or two forty kilowatts. This industry dynamics, favorable dynamics are being shaped by good policies. There are multiple states, cities, which have notified mandatory EV ready apartments to be there to get certificate of occupation. Delhi has outlaid four years INR 15,000 crores EV policy to put in almost 30,000 plus EV charging points.

19:02 Again, these are not just for cars, are for two wheelers, three wheelers as well. Also, any OEM dealer might have a EV charging station now. Earlier it was their choice, but now they must have. And PM eDrive continues to sanction money for electric buses and EV charging infrastructure for buses. Again, all this means there will be enhanced spending on the EV charging infrastructure both from government and private players. In terms of key highlights for Exicom in quarter one FY twenty seven, we secured 100% share of business for leading international brand for wall box chargers, home chargers.

19:53 We renewed our agreement with the leading truck OEM for portable chargers. And we also launched a charger with the two wheeler company as well. Fast charger with the two wheeler company as well. We continue to focus on our innovation and our new products include slim series chargers. These are for very dense spaces where there's not a lot of space to put bigger chargers. We have packed a lot of power into a small form factor and also put an innovative technology, which can allow the chargers to share power that is called ring topology. A lot of our customers are liking this and because of this differentiation giving us the orders.

20:43 In terms of our network and growth and our relationship with the CPOs, we've added 15 new network operators in terms of order intake in Q1 and have an order book of almost close to 180 DC chargers, which will continue until October 26, right. And not just in India, but Exicom is strong, it's steadily focusing on exports for EV chargers. So we bought orders from 10 new countries. A lot of these are pilot orders and after pilot, we'll move to scale. But today, we have an order book of almost INR200 crores for our ACDC charges in India, including exports of about $2,000,000 And I think this will be the first year where export will be a sizable part of revenue to as a percentage.

21:46 I don't want to comment on the target at this point, but our effort is to be in the similar range in terms of percentage of sales of exports of recharger as I mentioned in Critical Power. In Criterium, there is momentum shift in demand. As I mentioned, the bookings are close to $21,000,000 this quarter and you can see this is twice as big as the quarters before and the sales is roughly $10,500,000 This backlog will help in continued sales growth over the coming quarters. As far as Tridium is concerned, our focus is on strategic customers.

22:35 On the left, you see our new product being tried by Fortune 100 companies in the area of EV charging network and fleet and if these trials are successful, Tritium can be awarded more than $20,000,000 to $30,000,000 contract for calendar 2027. Similarly, we have a new product called GridFlex, which comes out from the same platform of TriFlex, but it's a bidirectional inverter to connect microgrades or provide even EV charging as well. This is also being delivered and being tried at a hyperscale customer and subject to successful trials can be expected to be awarded for $20,000,000 of contract for CY twenty seven.

23:25 So overall engineering efforts for the past two years has created strong pipeline with strategic customers and focus is to secure majority of the orders that we want to execute in CY twenty seven within calendar twenty six. That's when we put Tridium in a very different trajectory. Yes, it took longer for the turnaround, but we see not just green shoots, but we see the momentum and continue to scale to large revenue, triple digit million revenue based on these products that we have developed and the customer engagements that we have currently. Thank you. Thank you, dear shareholders.

24:12 And with that, I would like to pass to Shiraz Khanna, our CFO, for a quick update on the financials. Thank you so much, Anand, and good evening, everyone. I will take you through the financial performance of the quarter in more detail and then we will open those for the question and answers. In terms of stand alone, as Anand had mentioned, stand alone revenue for Q1 came in at INR 2 and 36.8 crores against the INR 150.7 crores done in the previous year same quarter. This is a substantial 57% growth year on year. While it is a little lower as compared to the previous quarter, which is quarter four of last year at 16%, which is in line with our usual seasonality of our business, where Q4 tends to be the strongest quarter of the year.

25:11 ChargePoint operators, OEMs tend to utilize their budgets and new budgets are taking time to be formalized in Q1. So this is a normal phenomenon. Within the stand alone book, Critical Power grew by 80% year on year to 176 crores and EV grew by 15% year on year to INR 61 crores. Critical Power was the standout driven by execution of the new telecom and the government orders we won over the last two quarters. Stand alone gross margins for Q1 stood at 29.1%, which is 2% above the previous quarter, which is Q4 of last year on better pricing and customer mix in both the segments.

25:56 On a year on year basis, gross margin was down by about 3.6%, primarily on account of The U. S.-led input cost pressure, partially offset by the favorable segment mix that we had. Stand alone EBITDA came in at 20.9 crores, which is 8.8 with a margin of 8.8% margin. This is 137% growth over the same quarter last year, which is quite phenomenal. I mean in the terms of which is INR 8.8 crores from INR 8.8 crores in the at 5.8% last year, it has really grown up this time. The fixed cost was challenging of INR 8.7 crores year on year, and I'll come back more on this in a moment.

26:48 But the operating leverage on higher revenue and richer mix more than absorbed the increase. Standalone TAC stood at INR 4.9 crores at 2.1% margin, far better and a meaningful turnaround from the last year same time in first quarter last year, where we had reported actually a little bit of loss because of exceptional items. Depreciation has gone up this year, 10.3 crores we have. This is primarily because of post Hyderabad plant was commissioned, and this is flowing into P and L. Other income was little lower than last year year on year, mainly because the IPO funds, which were put in FD have now got utilized and the interest now has been stopped because the funds were utilized to get the plant constructed and completed.

27:45 Moving on to consolidated financials. On a consolidated basis, the revenue of Q1 was INR 331.1 crores, which is a good 61% increase year on year as compared to the last year same quarter. Critical power grew by 73% and EV grew by 50% on a consolidated basis. Tritium delivered its second consecutive quarter of above $10,000,000 first quarter of revenue. Consolidated margins was 31.7%, broadly stable as compared to the last quarter of last year. On a year to year basis, consolidated gross margin was lower. That is primarily largely because of city of mix effect as margin normalized with fresh inventory purchases coming through this year.

28:34 Consolidated EBITDA loss narrowed, as Anand mentioned, down to INR 21.9 crores at a 6.6% negative. However, a much improved from the previous year, 38.6 negative that we had. This is a very meaningful and year on year improvement driven by better sales at both the stand alone and treated level, partially offset by the lower gross margins and higher fixed cost. The PAT, again, has shown improvement from the loss of INR 83.1 crores, now down to INR 73.6 crores loss, so which we are seeing a healthy improvement happening. I mentioned about Hyderabad plant in a few places in my address to you.

29:22 And Hyderabad plant, as we mentioned, since it's showing up in a few places, we shared in financial year twenty six that it had got commissioned and plant became operational in Q4 financial year twenty twenty six and now it's fully into production in Q1. This has two visible impacts on P and L. First, depreciation is stepping in. Stand alone depreciation is about 67% higher year on year and consolidated, it is higher by 57%. Secondly, the running running of the Gurgaon and the Hyderabad plant were in parallel during this transition phase, which is additionally approximately INR 8.7 crores to our fixed cost while the transition is happening. This is a planned and time bound investment.

30:09 The Hyderabad facility gives us 3x production capability and capacity, positioning us to better deliver the INR 1,400 crores order book that we have and critically serving the demand pipeline that we built for the year financially 'twenty seven and beyond. We expect the parallel run cost to phase out as Gurgaono transition completes over the coming quarters. The working capital, again, is the lifeline for any organization. And turning to the balance sheet, I want to walk you through the working capital dynamics that you will see in the numbers. Inventory with Hyderabad and Gurgaon plant running in parallel, we have a temporary buildup inventory both in both the facilities. This is by design. We are stocking up both plants to ensure production continuously happens during this transition and to be ready for Q3 and Q4 book orders. We expect this to normalize as the transition stabilizes.

31:08 Secondly, receivables. Account receivable is elevated, but this is in direct function of a sharp in revenue increase that we've had in Q1. Revenue is going up by 57% on a year on a basis and 61 on a consolidation basis. Collections quality remain healthy and the aging profile is intact. Third, debt and liquidity. Consolidated debt stood at about INR $3.70 crores as of June thirty six. Our debt coverage ratios remain well within the comfortable range. Our liquidity indicators are healthy, and we have adequate headroom to fund both growth investment and working capital life cycle. We are managing the balance sheet with a lot of good discipline. So with this, I think a consolidated book order of INR 1,400 crores plus as on June 30, a record high sales and Tritium also looking up in terms of increased booking.

32:08 We look forward to the next quarters with a positive intent. Thank you so much and back to you, Rahul, for question and answer. Thank you very much. We will now begin with the question and answer session. The first question is from the line of Taksh Gaur from Brighter Mind Asset Management.

32:59 Go ahead. Yes. So, yes, sir. You you were at consolidated EBITDA breakeven in q four, but have moved back to 22 per unit EBITDA loss in q one despite 61%. So I want to understand that what are the key drivers of this sequential margin deterioration and how quickly do you expect to return to EBITDA breakeven? That's my first question. So thank you for your question. You're right. Last quarter, we did have EBITDA breakeven owing to partly first quarter four, which usually is the highest revenue quarter for us.

33:45 So in that light, the EBITDA on the Indian business was much higher than in Q1. And in Tritium also was slightly higher, not because of sales, but because when we acquired the company, we had access to a decent bit of low cost inventory, which over time as we continue to sell has eroded. So that made the margin for Tritium, we were earlier enjoying unreasonably high margin to now still good margin, but not as high as we were enjoying earlier. So a combination of that resulted in a twenty two crore EBITDA loss. However, based on the order book that Exicom has today, I still expect Tridium EBITDA breakeven in quarter four twenty seven. But on a consolidated basis, the breakeven maybe over the next two quarters, I can't specify whether quarter two or '3, but on a consolidated basis, it will be breakeven in quarter two and on Tredium level by quarter four twenty seven.

34:59 Thank you. Right, sir. Right, sir. So on a follow-up question, TTM's order intake doubled to $20,800,000 in June. So when do you expect these orders to start converting into revenue? And does the order pipeline give you confidence in achieving the guided three x revenue growth and EBITDA breakeven by q four FY twenty seven that you have guided in the last Hong Kong? Yes. So, no, we are confident of that. As I mentioned, there are two types of growth levers happening at Tridium. Number one, the current backlog of orders is quite significant. It is $20,000,000 And that is the backlog on July 1. That doesn't mean there is not going to be more order booking as time progresses.

35:58 Also, there are some large strategic opportunities. These are large double digit million numbers of revenue, which we are hoping to convert through this calendar year into commercial contracts, which can be started executing, which will be started, you know, which will be which will be executed beginning calendar '27, first quarter, right? So based on both three things, the order backlog that we have, the pace of order book, which we continue to build and some of these large strategic wins, I'm sure that we will have 3x revenue growth compared to last year as well as EBITDA breakeven quarter four twenty seven.

36:59 Right, sir. So my last question, with the Hyderabad plant now operation, what is the current capacity utilization and where do you expect it to reach in FY twenty seven? So the Hyderabad plant was built for a much larger capacity, for example, 2x of the AC charging capacity that we had, nearly 4,000 DC chargers. The infrastructure was built and we keep adding plant and machinery and lines as it when required. We are seeing the surge in demand in AC chargers because of higher vehicle registration and passenger as well as commercial segment. So we have just ordered another line for AC chargers.

37:50 So in my view, our AC charger production run rate monthly run rate will almost grow by 50% in the next three months because of the demand. Overall, capacity utilization, I see on the DC charging to be about 65%, you know, because that's a heavier machinery and, you know, it's not a mass manufacturing product. On AC charging, I see close to 100%. On DC power system line, I see close to, between 90100% and on our PCBA lines, which manufactures all the critical PCBA assemblies that we design and develop IC utilization close to 100% and same in batteries as well. So with the current plant and machinery capacity that we have put in most of the product lines, are close between 90100% utilization for DC charger.

39:05 It was never meant to be 100% utilization because of the way that product sells, that's about maybe 65%. But this does not prevent us from expanding and adding new capacity. Some of the challenges today is not capacity, it's supply chain disruption. The geopolitical situation has caused supply chain disruption in semiconductors, anything plastics related, anything copper related has become very expensive. So those disruptions impact availability of material and that's why sometimes those allow us to fully use our capacity. But our teams have been aggressively working on all those challenges and I think we have sort... We have been able to sort out most of them better than our peers.

40:02 Got it, sir. Thank you and good evening. Thank you. Thank you. The next question is from the line of Suraj from Vijee Global Securities. Please go ahead. Yeah. Hi, sir. Good evening. I had a few questions. So firstly, to start within the EV charges segment, just wanted to understand a couple of things. First is revenue mix, let's say, after two years between critical power and EV. Secondly, also wanted to understand that what is the kind of growth you're expecting in EV charges of stand alone as well as in Tritium in coming year? And sir, lastly, you just said that the capacity utilization was two x. The capacity utilization or the capacity expansion is two x of what the current capacity is. But as I could see in the annual report, you went from 42,000 AC charges to 2 lakh 22,000.

41:01 So is there any confusion on my side? Yeah. So... Okay. I remember first of questions, but on the EV charging side, we did about $2.77 crores of revenue on a stand alone basis in FY 'twenty six, right? And this is about 30% of our overall revenue. And I think this year also probably the mix will be similar. It may increase a bit for EV, but the mix will be similar. I know first quarter does not project that, but a lot of the EV growth is just happening and some of this infrastructure build out will be as a result of this growth. I think we'll see that in the subsequent quarters.

41:59 So since the industry is growing, we also expect growth in R and D hardware business and allocate our resources. We cannot target every segment of growth and we have to make a conscious call to allocate our resources, which are the most efficient use of our resources and are most profitable. So as a question, I do see growth in our EV business from last year and the percentage of OLED split between two business divisions to be, you know, 70, 30 ish, maybe 65, 35, but in that range, right, you know, not very off. What was the other question? So my other question was that in the annual report I read that we are expanding from 42,000 to 2 lakh 22,000 in AC charges.

42:53 But then I guess you answered to some other participant that the capacity expansion has been two x of PV charges in AC. So is there a misunderstanding? I will I will check this again. I know the number of two left of these. Right? I think 48,000 was a single shift operation, whereas I'm... You know, this doubling of the capacity is based on double shift operation, but we'll take your coordinates and come back to you with an exact answer. Okay. Okay. And, sir, second question of mine is that I just wanted to understand, I mean, how are we looking at depreciation, the the kind of depreciation which I'm looking in the book?

43:46 That seems to be a bit on the higher side. Not a bit. I mean, a lot on the higher side. So so for example, in FY '26, the depreciation was 216 crores, and our block... So, I mean, that comes around 20, 25%. So just wanted to get your views on the depreciation. So, know, on a stand... There are two things over here, on a stand alone and on a consolidated basis. So on a stand alone, I think the depreciation is quite normal because of the new plant commissioning, it increased by INR 10 crores INR 12 crores, not much. On Tridium, the in last two years, we were in the product development journey.

44:38 And also as a result of acquisition, we had to service certain customers just to because of the reasons we were not party to prior to our acquisitions. So there has been capitalization because of those reasons, a heavy R and D investment to get the products out as I just mentioned And these will last for next five, seven years of revenue journey for Tritium. And yes, that's I think that's the primary reason, not because of lot of physical CapEx as such. But I think as soon as these projects start generating revenue, which I think is going to be a quarter one calendar twenty seven or quarter four financial year, We'll see all that depreciation getting to use in terms of that investment getting to use to start generating revenue.

45:50 But just when you look at the division, look at Tridium as well as India separately because there's R and D based in Australia and America. So the R and D cost is quite massive, quite sizable. But then the product that they cater to, like the product we make at Exicom, they cater to a let's say they cater to $1,000,000,000 market by 2030. But the product that we're making at Tritium will cater to a $10,000,000,000 market in 2030. So when you see some of the investment, you have to realize the context of the addressable market as well. Okay. So is it reasonable to assume that Q4 for TTM should be significantly higher in terms of top line and the bottom line will be doing good because of these revenues kicking in?

46:41 Yes. So that's again, business, there are so many factors back today from all the signals that we have from backlog, from the order pipeline, which we continue to build every month and some of the strategic revenue opportunities, which are large scale multiyear revenue opportunities, we think all of them will have started. Some of them have already started, but all of them together to start and giving us the kind of revenue and profitability that we have been open for the last two years that starting point will be Q4 FY 'twenty six. Yes.

47:31 Understood. Understood. That's great. And sir, lastly, in your presentation, the number of EV charge... The number of EVs, four four way EVs that are registered this quarter. So so what I want to understand or interpret is that, let's say, if your market share in these EV chargers is around 50 to 60%, so shouldn't it directly, you know, boil down to your number of units sold? So when you say that, let's say, 50,000 EV cars were registered this quarter, So shouldn't your charges will be around 25,000? I mean, doesn't it work that way? Yes. So now good analysis and question. So yes and no. We supply what is called as wall box charger. If you if you have an EV, you would know there are two types of chargers Yes. Which are... It is applied to the car. One is a portable charger, which is like an adapter, looks like an adapter, and one is a ball box charger, which gets mounted on the wall of your house somewhere.

48:36 We have a very admired picture in the ball box charger, not in the portable charger. Now what... Like, it depends on company to company, like, fits every car supply the ball box charger. So there, your analysis would absolutely be right. But let's take some other car company. Not taking names, but, you know, there's some car companies who who have EV models from very low cost to very high cost. So for the mass models, they do not supply a Volvo charger. So where, you know, we'll not end up supplying the chargers in those categories even if there is growth. So it depends. So there is a good mix overall, but generally the fleets and taxes, usually they are not supplied by the Volvo chargers.

49:22 But generally speaking, if there is growth, we have to grow. And I don't know if I mentioned this, but I see our AC charger monthly volume has already increased by 50% as we speak from, like, a levels of last, you know, let's say, December or November, December. And it's further will increase by 50% over the next three months. So... Yeah. Okay. So any blended market share, if you could provide me a number? Sorry to interrupt, mister Suraj. Could you please call back into the queue for any follow-up? Yeah. Yeah. I I will. I will. So I've asked the question already. I'll just get the number, and I'll call back in queue. No worry. Okay. Yes, sir. So... Hello?

50:12 Yeah. Yes, sir. So just ask the question on... So could you be able to provide the blended market share? Yeah. No. See, blended, I would not know. As in our DSI, the Dropbox charges, at that time, we had 60% market share. I don't know the exact number today, but it will be fairly high. Like, this is my estimation not from a retail report, but I think for Starbucks, our share still would be north of 50%. Okay. Understood. Understood. Thank you. I'll call back in.

50:59 Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Himansh Jain from Indira Securities. Please go ahead. Hi. Am I audible? Yes. You are. Hi. So congrats on a good quarter. So my question was regarding, can you comment on your treating capacity in The U. S, right, sir? Like, what capacity is it working? At what capacity? Sorry. What? Three Is your 3PM manufacturing in The US working at?

51:52 Yeah. I I got that. But what's your question? At what capacity? I mean, at what capacity utilization are we... What is your top line that you can do in terms of manufacturing with these charges over there, and what are we doing currently? Yeah. So as you saw this quarter, we did about 10,000,000 of revenue. I think the capacity there can service, you know, two and a half times of this revenue. So roughly, let's say, 100,000,000, slightly more maybe. And we're doing one foot of that today. That's not because of structural problem, but because of the turnaround, which is underway and hopefully the flag end of it once the three pillars legacy products, we have a backlog and continued pipeline and some of the strategic projects, which are new products, we get qualified.

52:56 I think we'll be utilizing we'll have good utilization rates for that factory. Got it. And just another question. As you told in your presentation that our EV business on a consolidated basis grew almost 50%, but on a stand alone basis, it was roughly around 15%. So despite, you know, several tailwinds in the AC charging by us, is there a reason that only 15% growth came on stand alone basis? Yeah. So on a stand alone basis, see, first of all, the momentum of EV charging, we cannot just pick that this quarter.

53:43 Right? So some of the demand will follow. But what happened is, I think AC charger still would have grown, but the value of AC charger is much less than a DC charger. On DC charger side, what happened, lot of customers due to realizing commodity, ForEx and other associated geopolitical risk, they upfront ordered a lot of charges in Q4. That's why you see a very high revenue of EV charging in quarter four, which is primarily pulling in DC charger demand from quarter one. So I don't have the numbers right now, but AV charger may have grown by 30% also, right? But DC charger, if it grew only by 10%, that's why you're seeing the effective blended growth rate at 15%.

54:34 So I think it's just a timing issue, but this growth is not one time, it's continuing. And that's why I think we're going to see continued quarter on quarter growth for both AC and DC charges. Thank you. The next question is from the line of Shashi Khan from BrighterMind Asset Management. My first question about the underutilization under P and E drives, about the installation of charges. And the recent new articles are pointing towards the underutilization of the fund. I mean, can you read some light on this? What would be the possible reason why things are not taking right shape on the ground?

55:28 Yeah. So, see, underutilization... So charging is something which has to be deployed at the right location of the right power. And when I see some good networks, there is one in South, there is one pan India, there are some net perks owned by the India's biggest conglomerates. These are all having good utilization rates. And some charging sites, even our utilization rates of more than 20%, which is like very, very good, excellent. Now when we look at charging infrastructure on aggregate, on average, that's not the right way to look at it. Because a lot of older charges deployed in two thousand twenty, twenty one, twenty two, you know, they're obsolete in terms of technology and power. You know, today, nobody will go to a particular charger and charge their cards.

56:27 You know, there are some of the charger deployed under tenders. You know, you know, I'm not even working properly at, you know, the the hydro location or city location. In fact, there was a study done by an independent consultant who gathers a lot of EV charging data. Know, again, you know, I I cannot say exactly about the accuracy of the report, but there is a report that 30% to 35% of the deployed DC chargers are not even functional anymore. So our focus has always been on producing high quality, reliable charges. That's you know, India's best network or most reliable network would be on Exicom's charger.

57:17 So it's a survival of the potential. Eventually, good product survives, bad product dies. So whether they're charging companies, good networks, people who are providing reliable uptime charges and good charging facilities, those will survive and that's where we need to see the utilization, etcetera, right? The locations which don't matter or are obsolete shouldn't figure out this calculation. Thank you. That was the last question for today. I now hand the conference over to the management for closing remarks.

58:07 So I appreciate all the people, stakeholders, shareholders. So I think this conversation with the management of Exicom, We have a lot of potential and we have for the first time industry tailwinds at a pace that we have never had before. We have the new factory. We have Tritium on the verge of turnaround and we have put in all the hard work. I see a light at the end of the tunnel, which will result in not just scale revenue, but good profitability as well in the coming quarters. Thank you for staying with us, sticking with us, and we are here to serve you.

58:56 And I think that journey is not far, maybe a couple of quarters away where you will see the expected results, not just on stand alone, but consolidated basis on that. Thank you. On behalf of Monarch Network Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.