Exicom Tele-Systems Ltd (NSE: EXICOM) Q3 2025 Earnings Call dated Feb. 06, 2025
Corporate Participants:
Anant Nahata — Managing Director
Shiraz Khanna — Chief Financial Officer
Analysts:
Rahul Dani — Analyst
Balasubramanian — Analyst
Sahil Patani — Analyst
Sambodhi Sarkar — Analyst
Suraj Gupta — Analyst
Jinesh Shah — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Execom TeleSystems Limited Q3 FR25 earnings conference call hosted by Monarch Network Capital Limited. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 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. Rahul Dani from Monarch Network Capital Limited. Thank you. And over to you sir.
Rahul Dani — Analyst
Yeah. Hi. Thank you, Sejal. Good morning everyone. On behalf of Monarch Network Capital, it’s our pleasure to host the senior management of ECCOM Telesystem. We have with us Ms. Anand Nada, Managing Director and CEO and Siras Khanna, CFO of the company. We will start the call with opening remarks from Anant and then move to Q and A. Thank you. And over to you Anant.
Anant Nahata — Managing Director
Thank you Rahul and good morning to all the colleagues and investors for joining Execom Q3 financial year 25 earnings call and we had uploaded the investor presentation yesterday and I would like to take you through that starting with some of the key highlights. Even before we go into Q3 results we have had some really landmark events in the company. One of which is the receipt of the biggest purchase orders your company has ever received in its history of about 1680 crores in our critical power business which will include the scope of supply of hybrid power systems, lithium ion batteries and various kind of services including annual maintenance contracts for over 10 years.
This project is to serve connectivity of more than 1 lakh 60,000 panchayats under the program of government called Bharatnet where various leading system integrators participated. And we have received business from some of the system indicators who have won those contracts for certain geographies like up east, up west, Punjab, et cetera. Second highlight is on the EV charging segment.
Execom made acquisition of a global DC charging company by the name Tritium in September of 24. We acquired this company through a bankruptcy process or a restructuring process. A lot of work went into the Last Quarter Quarter 3 financial year to restart the operations, to transfer the assets, to transfer the customer contracts.
But we have made great progress not just restarting the company but reigniting sales and service momentum. And we have seen continuous progress since acquisition in September till December. This will require investment from Execom for next few months and couple of quarters.
But this really helps in achieving this helps us in making strides towards achieving our long term vision of becoming one of the top providers of DC fast charging technology globally. Third highlight is around the domestic EV charger business and critical power business which we will cover in the subsequent pages starting with EV Charging Division Quarter 3 Performance as we said in the last running call, the sales for electric vehicles, particularly the four wheelers was very sluggish through the first half of of the calendar year. 24.
This was mainly due to a lot of people fleet companies waiting for new models to arrive and because of overstock of both automobiles and charging infrastructure with various network operators. However, quarter three saw a rise in demand for all EV products and with new models coming in from mg, from Tata and various other companies, we saw a steep rise in monthly sales of electric cars overall compared to quarter three. 24 the quarter three of fiscal year 25 grew by almost 23% compared to the equivalent quarter in fiscal 24.
Some of this growth can be also attributed to PM E drive policy which brings certainty around the subsidy and incentives around electric vehicle ecosystem, launch of multiple new car models and continuing EBUS deployment. While the market grew at 23%, Execom’s revenue grew at almost 38% from 48 crores in the quarter in fiscal 24 to about 67 crores in quarter three fiscal 25. On a consolidated basis we grew almost 120% from about 50 crores in Q3 24 to 110 crores in quarter three FY25.
This also includes a Tritium group of companies sales from Tritium group of companies. So it’s not like for like comparison. But even if we do like for like comparison without Tritium our sales on a consolidated basis still grew by 31%.
This is an area we continue to be very bullish on and we are investing in new product development. There was a very big mobility show by the name Bharat Mobility which Honorable Prime Minister inaugurated on 18th January 2025. This is where we launched our integrated DC fast charging technology that energy storage Today everybody wants fast charging but the grid supply is limited.
It’s not easy to get very high power connection in order to defer this investment but still provide fast charging even in areas with low grid capacity. We have come up with a solution where advanced energy storage can play a great role in providing and working in conjunction in harmony with EV charging and equipment and providing fast charge to all the customers every time. You know, specifically on the highways and city infrastructure.
We are also investing substantially in technology at Tritium with our R and D center being in Brisbane, Australia and a lot of work is going on charging technology by what we call it Liquid Cool charging technology for distributing charging system. This product is something which has gotten immense attraction from prospective customers and will be launching it in H2 of financial year 26. We also continue to do incremental innovations and improvement both for our home charging and DC charging product at Exycom to enable us fulfill specific requirement of the customers, bring innovation to people requiring charging their electric vehicles and ultimately enable higher market share for execom.
As we progress into subsequent years of growth of E mobility, the second initiative we are doing is developing international markets. Acquisition of Qidium opened a $10 billion addressable market for us which in India even till 2030 was only worth about a billion dollars. As I mentioned before, we’re investing in technology, global sales and service and with an aim to be top five DC fast charger manufacturers in key global markets by 2030.
We also recorded about 100% sales growth in Southeast Asia region when we started selling EV chargers about two years ago. So overall good momentum, good latent demand and we expect continued growth as per the industry growth for our EV charging division in quarters and years forward while we work on product development and build pipeline. It is also important to match cost based with current demand.
There is intense competition both from domestic companies, foreign companies and during this time we have started a lot of strategic projects to optimize costs for better cogs, gross margin and EBITDA especially there’s a lot of pressure because of increasing dollar price and we also in these times we are focusing on key accounts, key segments and in these segments trying to increase our wallet share both from existing and new customers. And next slide if you see revenues by geography now as I mentioned, at least in recharging we are a global company. India is going to be always center of our market.
That’s you know we feel there’s immense growth potential in India. That’s a region which represents about more than 50% of our revenue, about 56% and UK, Europe, Australia, New Zealand, Southeast Asia represent another 42% of our revenues with us according for a low percentage of revenue right now. But I’m sure as when we look at these figures on an annual basis, US will also be one of the key markets.
For next page we are talking about the macro trends which indicate robust EV market growth in FY26 and beyond. If we look at India domestic market because of PM E drive scheme, there is almost 2000 crores allocated to support 72 new charging stations, 72,000 new charging stations. Almost 48,000 of these chargers will be for electric two wheelers, three wheelers, where it becomes a product but it’s not a, it’s not a focused market for us.
But about 22,000 of chargers out of the 72,000 chargers which will get support subsidy support will be for will be five charges for four wheelers and about 1800 charges will be for the ebuses. This will create a lot of momentum to put fast charging infrastructure. And EXECOM will be one of the key beneficiaries for this.
We have for the first time at the Bharat Mobility show we have seen more EV models launched by major OEMs versus the IC model. This has happened in India for the first time where many more electric fully electric models have been launched than IC vehicles. And these launches have not been by startups or small companies, but big domestic and foreign companies including Maruti, Suzuki, Hyundai, Tata, MG and Mahindra.
And many of these OEMs are also investing in fast DC charging network to provide an end to end seamless experience for their customers. This will also drive adoption of EV a lot more because people see these as trustworthy brands and their ability to provide seamless experience to the customers. We are engaged and working with many such OEMs to deploy such fast charging infrastructure.
Buses, cars have been the center of this market, center of the growth of this market since last three, four years. But every now and then new segments also emerge. One of such emergence in EV sector is the cargo segment where we have all the way from 1 to lower digit double 10 trucks being launched by leading cargo brands in the company.
Whether it’s Ashok, Leland, Tata, vecv, IPL tech on their new electric platform. We think if not in FY26 but in subsequent year these vehicles will also create sustainable demand for fast charging infrastructure. On a global basis, the global markets are much ahead of India.
In US EV sales hit 10% of total vehicle sales. This is despite curtailment of green subsidies. But since EVs are naturally cheaper to produce than IC vehicles, so sales continue to rise.
In Europe, the government has targeted 1 million fast charging points by end of 2025. And 90% of these points are DC chargers. And also in Europe there is a policy under CAFE norms where all the OEMs have to sell minimum number of electric vehicles else they face huge fines and penalty.
So with these CAFE norms getting more stringent every year, we see a much more likelihood for more demand of DC+ chargers. So tritium group of companies are also well placed when it comes to pursuing global pursuing global sales of DC plus charging. There’s a short update on our EV charging business.
Moving on to Critical Power Business so critical power business was sluggish in quarter three. In our critical power business we provide DC Power solutions and energy storage solutions which make these digital infrastructure networks run. It provides energy stability to these networks and the reason for slower growth was consolidation within the key telecom infrastructure companies, delay of certain PHU projects and deferment of capex cycle by telcos after heavy investment in the 5G 5G network.
Also I would like to highlight to our investors telecom infrastructure spend happens in phases, so it’s not consistent on quarter on quarter quarter basis. But as we said during our IPO and many subsequent investor calls on an annual basis the growth of the telecom industry is expected to be between 8 to 10% CAGR for telecom infrastructure industry selling and that’s what we also aim as a company for this business division. In last quarter we did about 212 crores of sales.
That was on back of some very big orders for specific projects which degrew by almost 60% to about 80 crores on a standalone basis and 86 crores on consolidated basis this year. The pace of the tower industry addition has been the slowest at only less than 1% for the last 12 months and the new tower installation which stood at about 11,600 in Q3FY24 was only 7,500 in Q3FY25. But as I said, this business tends to be lumpy.
We expect quarter four to be a much higher growth and a much better number than we did in quarter three and also expect very stable revenue and cash flow from the business over the next three years. With the new project that we have received, which I opened my remarks with, we have received about 16801680 crores worth of orders and still more, you know, more to come yet this is not the end. These orders have been received for Power Solutions Energy Storage smart cabinets to deploy over the next three years.
We are very excited about this business even though quarter three has been sluggish. But we see very good momentum in Q4 and continuing over the next three financial years for this business. Apart from big projects win, which I just talked about, our other business development continues.
We added one Telco three infrastructure providers as our customers in Portugal. We are in advanced discussion of product approval in some cases have already received from new customers for our power system and energy storage solutions from leading tower codes and telcos in India, Southeast Asia and Africa and we continue to progress and make sales on some of the projects which are continuing from fiscal 24 as well. Our key initiative here financially is to improve visibility of our top line and match cost base with current demand.
Again here the focus is on key accounts. This is a highly consolidated business between telcos and tower codes, so we must focus on key accounts and increase volunteer in these customers. And secondly a lot of strategic projects are ongoing to optimize cost to negate weaker rupees which will help in achieving better cost margin and EBITDA.
This was specific to Q3 but on a broad basis key drivers for our critical power business continue to be number one solarization. There are a lot of towers are getting installed with solar panels to cut power opex and cut diesel dependency. A lot of sites are replacing a lot of power sites are replacing the older inefficient power system with high efficiency power systems to save again power Topics this is one of the fundamental reasons for replacement market there’s also a new product line we have entered into which is Smart Cabinets, smart outdoor cabinets.
We’ll be doing 4 digit crores worth business of these over the next 34 years. A lot of telecom sites historically have been indoor sites which use a telecom shelter to house all the equipment that has become increasingly expensive from a rental point of view, from cooling requirements point of view as well as generally from poweropics point of view. So there is a big shift among the telcos to convert these sites to outdoor sites which require these smart cabinets to house all the telecom equipment.
That’s a business which has been started by us in quality and is progressing well. Continues to be drive to convert the batteries from traditional lead acid batteries to lithium batteries for reasons of lower maintenance, longer life, higher efficiency. Execom has been one of the leaders in this segment with more than 2.5
GWh of deployment. Market opportunity for this is over 2 lakh batteries per annum just in India and we are working with leading tower companies and operators to sell our product in this market and we continue to have the largest deployed base in India for this product. With this I’ll complete data on critical power and in summary sluggish business in Q3 but should not be seen as quarter on quarter because of lumpy nature of the business.
Good growth prospects in Q4 and in next three financial years. Moving on towards marketing, we have been aggressively marketing our new product solutions and participating in various conferences including leading mobility shows. We participated in Bharat Mobility in January 25 and launched a new product Line by the name Harmony Boost.
This is an integrated product from both our business divisions where we bring in leading energy storage solutions along with fast EV charging to provide fast charging services even in areas of curtailed grid connection. That’s gotten very good reviews from the customer and we hope that to be a good part of our sales in fiscal 2026. We continue to push on marketing by being a thought leader in the industry by participating in various trade shows not just in India but in various Southeast Asian market and Middle Eastern market as well.
We also announced MoU with two leading companies. One is the Chargezone who is India’s leading charge point operator to deploy 500 fast charging stations. And many of this will have the battery solution by the name Harmony Boost that I just spoke about.
The second MOU is with moven Infrastructure Solutions. So that’s a company which helps lead such fast charging infrastructure because not everybody has the ability on their balance sheet to put CapEx right up front. So these companies lease out automobiles as well as EV charging infrastructure.
So we are working with them to serve the long tail demand. With this I finished the business update and I would like to pass it to our CFO for financial update.
Shiraz Khanna — Chief Financial Officer
Thank you so much Anand and good morning to everyone coming to financials. You know the first six months H1 of 202026 has had a certain external impact and why Anand did share with you in terms of how it has gone in terms of numbers. April 19th we went into elections which ended in June and then the government came back and kind of redid its policies and some of the subsidies. So fin too ended on 31st of March 24th and we saw the PME drive come in on the 15th of September.
That took some time for the improvement of push that was required in EV side. We also saw new launches not coming in then but with the recent expo that Anand mentioned which was inaugurated by Prime Minister on 18th of Jan, we saw almost all OEMs, all car manufacturers displaying new versions of electric vehicles and that’s the positive sign. So that’s looking good.
And in any change of environment where we’re talking about change in the usage of cars, from fossil fuel cars to ev, it takes a while for the environment to get changed, to make it comfortable for people to switch and make change to EVs and while the rollout of the electric vehicle chargers is happening, getting it more comfortable to them even in critical power. I think as Anand mentioned, this business does seem to get a little lumpy. 2023, 24 saw a lot of projects from the government which are covering uncovered villages, upgrading the BSNO network from 2.3GD to 4G and so on so forth. And then there was a little bit of lull again because of the government election. Wouldn’t stop coming.
And then now we certainly see a much healthier infrastructure boost that the government is doing by rolling out the Bharat Met projects in which we already are coming to financials. I think you must have seen all of them. But we’ve done better in EV over the previous quarter where we’ve done 67 crores, again 43 and we’ve done better than the previous year’s same period quarter.
So our EV growth in quarter to one quarter is up by 55% and year on year by 38%. Critical power has seen a bit of deep work. That is because of the high projects, the big project that we had in 2324.
But we’ll see a bounce back happening with 1680 crore orders already and hopefully some more to come because management are still being announced and we are working with those FIs. Gross margins have got impacted in Critical Power and in EV a bit. Just in this quarter I talked about the four year which I would do a little later.
Pretty much okay, exchange fluctuation again a short term fluctuation impact and which increases the cost. We are looking at acquiring talent and supporting new growth. So there’s been a bit of cost increase in the manpower and we did take some, we did take some loans to acquire tritium and there is a impact of interest on loans that have gone.
So that’s been taking the hit on the pack. In terms of consolidated numbers we see that we’ve done better over the previous quarter. We’ve done 196 against 163 crores of course lower than the previous year.
Same time where we had these really at Critical Power projects running overall growth of 20% quarter on quarter. But a degrowth from the previous year budget. 25% EV growth was 139% quarter on quarter.
And we see overall share in the overall sales percentage of EV growth. So in this 196 crores, 197 crores that we did this quarter consolidated we had 86 crores of critical part with 110 crores of EV. And that also came in from Chitin which did about 44 crores of turnover in this last quarter.
And Kitim has already received some good orders in last quarter which is about roughly 13.7 odd crore from large charging deploying companies across the world and 13.3 million and they will we continue to pursue and bring back confidence of those customers globally to give us more orders.
Gross margin improved from standalone because Tritium margins improve are better and that has helped us. There’s a slight drop in quarter on quarter margin and this is again momentary in terms of the capex in OPEX cost and we’ve had EBITDA going down a little because Tritium is still a startup. We acquired them in September, October 24th and just in the first quarter ending so it should get better as the sales increase.
In terms of standalone financial highlights here today the revenue is against 568 crores. We are at 539 crores so it’s about 30 crores. The overall margins have been as a percentage been same at 29.5 against 29.2% this six or nine months. Revenue down by margin down by 10 crores. But we’ve been investing in terms of manpower in terms of R and D and so the EBITDA is lower in terms of the overall as compared to last year and then the PAT has the impact of the interest costs that we are bearing for the moment in terms of consolidated financial highlights again revenue slightly down but looking at it to be picking up margin is pretty much same across the consolidated versions of 24 and 25 and however EBITDA is primarily down because of Tritium getting attached to the overall consolidated numbers. As I said, Tritium is just a startup. There is in a way we have got a very good start because somebody is already working the plant is running, the RD is there.
We get back the confidence of customers and we cut the orders which we’ve already got 13.7 million last quarter. As we grow into next quarters we should look at becoming big even in the next financial year coming by and the pad of course is again the combination of and that’s the reason the toll on the pad there is some interest cost because of the investment in so India overall continues to be strong and chichen over the period with will support our aim to be global companies having a footprint across all the countries.
Thank you over to you Anand.
Anant Nahata — Managing Director
So with that I think with that I just want to go over the project update of our new upcoming integrated plant in Hyderabad today we operate out of multiple plants that will be able to leverage at this facility getting constructed in Hyderabad Overall volume of our power electronic products and including battery manufacturing. We had aimed to start production in April.
We are maybe two to three weeks delay in in terms of schedule but we do plan to start production There in about between first and second week of May. So a lot of progress there. A lot of investment going into next generation manufacturing techniques and we are sure the products coming out of this facility will highest possible quality standard and lowest possible operation costs. That’s the NVR building.
Thank you. Over to you Rahul.
Questions and Answers:
Operator
Sir, should we begin the question and answer session? Okay, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Foreign the first question is from the line of Balasubramaniam from Arihant Capital. Please go ahead.
Balasubramanian
Good morning sir. Thank you so much for taking my question. So my first question regarding this tritium around 70 percentage of EBITDA comes from there only. Could you please share financial details about revenue, EBITDA and pat for this quarter and when we can expect like improvement and synergies for this from the tritium side.
Anant Nahata
Is it possible to repeat the question?
Balasubramanian
Sir, Around 70 percentage of loss EBITDA loss comes from Tritium and could you please share financial details in terms of revenue, EBITDA and pat for this quarter and when we can synergies and improvement from that acquisitions.
Anant Nahata
Yeah. So as we mentioned Tritium is a company of global scale where the first quarter really went into restructuring the business. This business was bought through a bankruptcy process which required us to you know transfer the assets to a separate company, transfer their customer contracts, transfer the employees. So there was some time required to start business as usual which finally occurred in December. But I can tell you there has been month on month sales improvements. This business will require investment over the next two three quarters. However we think this will help us achieve the business should achieve fiscal 26.
Balasubramanian
Bit of break even by FY26. right sir. For this year.
Anant Nahata
Yes.
Balasubramanian
Okay sir. So my second question regarding like some of the impact comes from this ruby against USD foreign exchange side. Like what are the methods and mechanisms we are following for this risk mitigation side?
Anant Nahata
The Forex, you know Indian currency is always depreciated per year so there is general resilience in the business to take care of Forex. However drop recently has been too big and too sudden that has impacted us negatively. That’s why we have losses even in the Indian business. They are taking steps to aggressively reduce the cogs to negate the impact of this dollar rise. Second, you know localization is something we continuously focus on but the pace of localization has increased for us in the recent months and negate the dollar impact. And third, now we are looking at locking in some of the dollar pricing in conjunction with locking in customer contracts. So at least we are any unforeseen risk on account of dollar hedging. In other words we have not done that in the company till now but actively looking at that as well to see if it can.
Balasubramanian
Got it. Sir, could you please explain about this capex side for Hyderabad plant when we can expect a commencement. And and another thing, working capital side, how we are managing as of now I think we have balance IPO proceeds around 176 crore.
Anant Nahata
Yeah so as I mentioned in my update we are looking at production in May. The construction is going at a good pace. 23 weeks delay earlier the schedule of April, now it’s May. But we are very happy with the outcome. We are very happy with the quality products we’ll be able to produce here. So that’s what I mentioned in my update. Working capital is pretty much the same as in September. There is improvement in September and it’s pretty much the same as of March 24th. So we have about 71 days of receivables which is an improvement from September.
Inventory is roughly the same and obviously now we have cash in the books so there is improvement in account payable on a continuous basis as well. So yeah, working capital tends to slightly increase towards starting of quarter four because we are B2B business. Most of the businesses have to exhaust their budgets by the end of the financial year.
So quarter four is generally heavy in terms of investment by B2B players. In terms of sales for us that’s what you’ll see in the previous years as well. So inventory does go a little bit high in this quarter but overall you know we are okay with working capital status.
Operator
Thank you. The next question is from the line of Janesh Shah from RSPN Ventures. Please go ahead. We have lost the connection of the current participants. We will move on to the next participant. The next question is from the line of Sahil Patani from Stockers Capital. Please go ahead.
Sahil Patani
Hi, thanks for the opportunity. A couple of questions. So this is our second quarter in a row where we’ve posted loss in the bottom line and I understand that’s because of tritium. A lot of cost has gone in there. So just wanted to understand that next quarter onwards at this Q4 onwards, do we think there will be some sort of profitability on a consolidated level. Is there like a couple of more quarters left until we see that effect and the bottom line, we have like some consistent profits on the bottom line. So that’s my first question.
Anant Nahata
On a standalone basis as I mentioned, we are a B2B business. Most of our customers need to exhaust their budget in quarter four. Quarter four, even if you see in the previous years has been, you know, good for sales. So you know, on a standalone basis we definitely hope for profitability in quarter four and from next financial year we have great order book to ensure consistent growth in revenue and profits over the next three, four financial years on a consolidated basis. We do see investments in tritium and time for it to achieve businesses usual or breakeven past the breakeven point would be two to three more quarters. That’s why I mentioned we expect EBITDA breakeven for tritium on an annual basis in FY26.
Sahil Patani
Yeah, okay, thanks for that. My second question was on the Netherlands subsidiary. So we saw, we saw the note that I think we are shutting down that subsidiary. Right. And I think we incorporated that subsidiary not very long ago, about six or seven months ago in July. So just trying to understand what is the capital allocation strategy there because we opened something in July and within six or seven months we’re trying to shut it down. So just want to understand what the capital allocation strategy is there.
Anant Nahata
So it’s not for the reason you mentioned. So we had opened the subsidy to expand the business into Europe. This is before we acquired Tritium and after we acquired Tritium by virtue of that transaction we got a Netherlands subsidiary. So we didn’t want to operate two separate subsidies to expand business. It’s complex to maintain so many regulatory requirements, etc. So we do have a Netherlands subsidiary where we’re already doing business off of Tritium and will do off Exifom as well whenever the charge comes. So in order to avoid duplication, this has been shut down. This will open the 4KQ. That’s why.
Sahil Patani
Okay, okay, understood.
Anant Nahata
So we’ve not done any transaction in that entity which was just open. So it’s zero transaction. So. And we have a Tritium Next Gen Solutions incorporated in BV where we are working now in the Netherlands.
Sahil Patani
Got it, Got it. Okay, thanks for that. That’s all I had.
Operator
Thank you. The next question is from the line of Sambodi Sarkar from NJOR Global Advisors. Please go ahead.
Sambodhi Sarkar
Hi, thanks for taking my question. Am I audible?
Operator
Yes sir.
Sambodhi Sarkar
Awesome. So a couple of Questions from my end. First is on the domestic EV charging business. We are hearing things about increasing competitive intensity. How are you seeing the competition play out and how are you able to protect your market share?
Anant Nahata
Yeah, so you know there is no doubt there is heightened competitive intensity in both home charger market as well as DC fast charger market in India. Small players, big players, Chinese players, we have this competitive intensity was always there. Today with so many new model launches etc much higher than couple of years ago. But and any high growth industry in India usually goes through this what I call as red ocean where you know, people give an arm and a leg to win business. At this time the whole industry suffers a bit out of margin. But companies such as us, we continue to focus on things that really matter. Reliability, holding onto key customers, increasing our wallet share in key customers.
Saying no to some business, which is very hard to do but we have to sometimes so and when we do these things, when you follow, you know, things we should be following and not get drift, you know, drifted in this red ocean madness, then he will definitely come out stronger. When we started EV charging market in 2000, business in 2019 to clear that there are competition that time, none of them exist today, zero supply. So you know companies that were competition in 2000, handful of them exist today.
So what I mean to say, I don’t mean to say competition is irrelevant. They are very relevant, we acknowledge them. But more than competition, we focus on delivering great products, great value to our customer and winning that share. We don’t obsess over competition. We are here for long term. Yes, competitive intensity does slow the growth rate of revenue. Know it leads to margin squeeze. So I do see and you see that in our financial. Right, a little bit of margin squeeze. But overall we have been maintaining growth compared to the industry, we’ve been maintaining decent margins. Not that we would have liked a decent margin but we think, you know, this creates, what do you say, like differentiation. Right. Because people get to see great companies versus average companies and we hope to be one of those great companies and come out stronger in the long run.
Sambodhi Sarkar
Congratulations and thank you for your focus on profitable growth. That is really important for us as shareholders. The second question is around the domestic power, critical power business. I understand that it is lumpy and we’ll have periods of peaks and drops in demand. Is there any way to understand the lumpiness or like have better predictability of the business so that we can avoid negative surprises just this quarter?
Anant Nahata
Yeah, you know, if we can get your contact, we’ll try to Maybe come back to you with an answer but there is no hard and fast rule. The best rule is basically track some of the infrastructure investments which are happening. So when, like for example when 6G is being launched, right, you can certainly predict the next two, three years are going to be stable growth. And so whenever lumpiness usually in a negative way impacts when a big capex cycle has finished like the 5G capex cycle generally, you know, finished last year, right? Everybody’s trying to recover their investment investment of that. So usually towards the end of big capex cycle which are in correlation with launch of new technology like 4G, 5G, 6G and feature this is when this happens. However, I think the good thing is we have a very good base and predictability because of the large order that I spoke about over the next three years. So my message to the investor shareholders is we will not see the level of emptiness that we have seen this year for the next quarter or next financial year.
Sambodhi Sarkar
Sir, thank you.
Operator
Thank you. The next question is from the line of Suraj Gupta from Mahadev Securities. Please go ahead.
Suraj Gupta
Hello, is my voice audible?
Operator
Yes sir, Please continue.
Suraj Gupta
Yeah, firstly I want to know about the disclosure of the events like all these loss making or we can say the bankrupt companies which we have taken over. So the impact on the EPS which we are seeing as quarter two negative, quarter three big negative. So were the proper disclosures were made earlier that due to these takeover, at the time of takeover we will see these kind of losses in the company.
Shiraz Khanna
The disclosures we did take and make, all the approvals that we got from the board and the updates that we put on the exchange in terms of the acquisition that we were going in overseas. This at the price that we’ve got is very, very advantage to us and the best way for us to look at going global where Tritium is present in Europe, in uk in US and in Australia.
Anant Nahata
So just to add on to that, my comment to all the shareholders is EV is a very nascent business and we want to be, we are in it for long term, we are not making short term decisions and that’s why today, you know, so when we take over the business there is a bit of learning curve for us as well which has happened and that’s why we are telling the investors shareholders that this will, you know, Tritium probably would be the coverage even in FY26. So that does give you some insight into the financials but it will also help us to be one of the top five companies in DC charging globally and gives us access to 10 times the market than we were playing in earlier.
Operator
Thank you. Before we take the next question, a reminder to all the participants that you may press Star and one to ask a question. The next question is from the line of Ginesha from RSP and Ventures. Please go ahead.
Jinesh Shah
Yeah, hello. Thanks for the opportunity. So my first question would be with respect to the performance of the subsidiary companies that are in Malaysia and Singapore. So I would like to understand that majority of the business in this subsidiaries comes from critical power segment or EV charger.
Anant Nahata
So when the subsidiaries were established, they were largely for critical power. Because. Because EV charging business only started in 2019. But increasingly the EV charging business has also been developing there. So we have 100% growth in our EV charging business in Southeast Asia compared to last year. Again, small base of percentages don’t matter, but still 100% growth is good. But I would say roughly 70% would come from critical power. About 30% would come from EV charger. But this percentage will change in favor of EV charging as we move forward just because of the high growth rate of the industry.
Jinesh Shah
Okay, understood. So in quarter three, if I compare the standalone and console level or that EBIT level numbers, so I can see that in September standalone figures are much better. And at a console level, drag duty, maybe losses in subsidiaries or something. And if I compare that with quarterly, it was the other way around. So like have you like improving the performance over there or what has been happening? I just want to understand.
Anant Nahata
The voice is not clear at all. So can you slowly repeat please?
Jinesh Shah
Is it better now?
Anant Nahata
Yeah.
Jinesh Shah
Yeah. So I just want, if I compare that with quarter two or quarter two and quarter three figures at a standalone level, numbers were much better at EBT a bit level. And because of maybe subsidiary downs there were like at a console level, it, it tracked the EBIT numbers in quarter two. However, it was other way around in quarter three. So I just wanted to understand that. Have you like improved and improved in subsidy business and something like that and uh, what will be, what will be the trajectory going forward?
Anant Nahata
If I understand the question correctly, you’re saying on a console level the, the growth is better when we consider consolidated. Sorry.
Jinesh Shah
Yeah, at ebit, numbers are much better at console level. In critical power segment business as compared to standalone.
Anant Nahata
I don’t think we disclosed. Okay, yeah, in segment results. Okay, yeah, look to just one second. I don’t know. I’m sorry, I still don’t get the question. Because the standalone shows better figures than consolidated. So I’m not sure whether consolidated are better than standalone.
Jinesh Shah
Actually I just got that from the segment results only because quarter three seemed much better than quarter two and standalone level for critical business. So I was just like that a certain turnaround is happening or something like that or what? What is it that I’m missing?
Anant Nahata
So look at the segment results and reply to the query separately. But generally speaking, quarter three was definitely sluggish and for critical power, because of the lumpiness we would have liked it to be better, which we definitely are hoping for. In Quadra we are looking at a marked improvement and then definitely in the next few financial year much more stable revenue and cash flow.
Operator
Sorry to interrupt. Mr. Janesh, I would request you to rejoin the queue for your follow up question. Thank you. The next follow up question is from the line of Suraj Gupta from Mahadev Securities. Please go ahead.
Suraj Gupta
Yes. Is my voice audible?
Operator
Yes, you’re audible.
Suraj Gupta
Yeah. I want to mention that as an investor when I see the events which all has happened. For example like firstly the IPO came that time we were.
Operator
So we have lost the connection of the current participant. We will move on to the next participant. The next question is from the line of Dheeraj Kumar who is an individual investor. Please go ahead.
Unidentified Participant
Thank you for this opportunity. May I know the consolidated order book for our company including tritium and current capacity utilization.
Anant Nahata
The current order book, this is as of December. I’m telling because as of date it will be in excess of 2000 crores. But as of December it’s roughly 275 crores on a standalone basis and about $15 million more for the subsidiary entities. But this is just for.
Unidentified Participant
Is it. Sorry to interrupt. Is it just for the EV charging business or are you also including the critical power?
Anant Nahata
Yeah, including the critical power.
Unidentified Participant
So excluding the critical power, just for the EV charging business, I would say it’s close to 500 crores, isn’t it?
Anant Nahata
No, I said at the end of December on a standalone basis which includes both the business division about 275 crores and for subsidiaries about $15 million. In addition, that is end of December.
Unidentified Participant
Please tell me in Indian rupees. Could you please tell me approximately Indian rupees in crores. It’s easier for me to understand.
Anant Nahata
Yeah, so 415 crores roughly.
Unidentified Participant
Okay, that is. And what is the current capacity utilization?
Anant Nahata
Current capacity utilization would be. I’ll get back to the exact number but it should be around 64. Between 60 to 65%. And the order book I mentioned, I again repeat as of December today. As of today it would be well over 2000 crores.
Unidentified Participant
Yes, but that is, that is for critical power as well. And we you say that the current capacity utilization is around 60% plus we will have the Hyderabad land. So I’m not sure, you know, having you talk about the red ocean strategy of not reducing the costs or reducing the margins when you have high competition. I’m afraid if we do not do the same our competitors will go ahead with their introduction in margin, take all the contracts and we will stay behind.
Anant Nahata
So two things. First of all I mentioned today, I didn’t mention red ocean strategy. I said today it’s a red ocean which is leading to margin squeeze which I accepted. So it’s not that. So what I mentioned is we are not obsessing over just competition and competitive intensity. We have to do things which we think are right and long term. We have continued to grow more than market. We continue to be the leading player in this industry. And as I mentioned our margins are okay but not as good as I would have thought because of the competitive intensity. So we are fighting in the marketplace, fighting hard to get business and our teams have done fantastic jobs in doing that. The utilization is 60% in quarter three which is, you know, in terms of sales is not the best quarter. But looking at the order book that we have because we on operations side we have common operations. We don’t have different, you know, better electronics company at the end of the day and we have common plans for our critical power EV charging business.
So looking at the growth of the EV charging industry which will happen because you know it’s been only a few weeks. The industry has announced so many car models, so many investments. It’s been just couple of weeks. We have received maybe not even less than that big order in critical power. So I’m sure Hyderabad facility is coming at the right time to produce these equipments to the volume and the standards that we would like to.
Operator
Thank you ladies and gentlemen. Due to time constraint we will take that as the last question. I would now like to hand the conference over to the management for closing comments.
Anant Nahata
Thank you Rahul. Thank you Monarch Network. Thank you all the shareholders and investors for participating in Q2 earnings call. We appreciate and thank you for your continued support. We have gone public only one year ago so please bear with us. It’s a learning phase for us also. But we strongly believe in the businesses we are in. We believe in the long term potential and growth of these in these businesses. And I’m sure the results over the next financial next few financial years will yield good results for everyone for company and hopefully the shareholders as well. Thank you very much.
Operator
On behalf of Monast Net Worth Capital Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.