Exicom Tele-Systems Ltd (NSE: EXICOM) Q4 2025 Earnings Call dated May. 24, 2025
Corporate Participants:
Unidentified Speaker
Anant Nahata — Managing Director & Chief Executive Officer
Shiraz Khanna — Chief Financial Officer
Analysts:
Unidentified Participant
Aalok Shah — Analyst
Sriram — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Exigom Delhi Systems Limited Q4FY25 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. Should you need assistance during the conference call, please signal an Update by pressing SHA then 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Alok Shah. Thank you. And over to you sir.
Aalok Shah — Analyst
Yeah. Hi. Thanks. Good afternoon all. Thank you for joining in on this Saturday afternoon. On behalf of Monast Network, it is a pleasure to host the senior management team of EXECOM Telesystems. We have with us Mr. Anand Nahata managing the reference, CEO, Mr. Siraj Khanna, CFO and many other senior management team from Exicom. We will start the call with opening remarks from Anand sir followed by a discussion on the financials from Siraj sir and then move to Q and a session. Thank you. And over to you, Anand Sir.
Anant Nahata — Managing Director & Chief Executive Officer
Thank you. Alok. Good morning everyone. Thank you for joining us today for execom’s quarterly investor update. Appreciate your continued trust and partnership as we navigate an exciting and transformative time in clean energy and electric mobility. I look forward to sharing our progress, key milestone and what lies ahead in this journey. So I’m scrolling through the presentation, through the investor presentation that was uploaded last night after our results. In terms of Executive summary, I’m going to say that in three segments. First, about our domestic EV charger business. Our revenue in domestic EV charger business was similar to Q4FY24 but had a degrowth of about 17% compared to Q3FY24.
As we all know, the first half of FY25 was quite a lull for electric vehicle industry as people were awaiting new models, new launches which finally happened. And both Q3 and Q4 have seen a significant vehicle uptake which we’ll talk about shortly. But at the same time there is very high competitive intensity. We in fact delivered more volume in Q4 compared to Q3. However, because of the price pressure, the revenue is slightly down. However, thanks to the positive momentum in the market, our new products Launch, particularly the Gen 2 DC charger and higher expectation of customers for better product quality, better service is driving better market share for Execom compared to its peer in FY26.
That’s our strong hope that Exiccom will have better market share than its peers in FY26. On the critical Power business, this is a business on a quarterly basis. The revenue may appear to be volatile because it’s linked to timing of certain specific telecom infrastructure projects which we have won, which we are executing, but on a yearly basis, as I’ve always said through the IPO and various investor calls, it’s a business which generates sustainable cash flows and grows at about 8 to 10% a year. It’s a far more mature business than our EV charging business. So There was a 33% degrowth compared to Q4FY24, but almost an 88% growth which is significant compared to Q3FY25.
We were happy with the revenue and the milestone and the deliverables we achieved in Q4. For critical power business there is very good traction. One thing which is different in current which happened in last quarter and will follow through the current year financial year as well. There is good traction across Telcos Tower coast in Africa, Southeast Asia, Middle east to build a robust export pipeline for FY26. And last but not the least, this is the highest ever order book we have had for Critical Power business which is more than 1500 crores that has to be executed over next three years, but still a substantial base order book to have robust revenues and profitability over the next three years.
The third aspect I want to cover in Executive Summary is Tritium EV Charging business. We acquired Tritium Group of companies across US, Australia and Europe in September of 24 in a bid to expand geographically in the EV charger business. The strategic investments have happened strategies in place. However, these investments are taking longer time to convert to sales but I remain very firm and positive on the outlook. Tritium launched its new distributed charging platform by the name Triflex in April 25th at ACT Expo in California USA. This is one of the largest electric mobility trade shows where the product got a lot of appreciation from peers and most importantly our prospective customers.
This product was center of the strategy of it was center of the product strategy during the acquisition phase and we are happy now. It has manifested into a sellable product which has brought back the Tritium product range to current compared to the past product range which were on the verge of becoming obsolete. There are advanced stage negotiations and conversations for significant value contracts with network operators in US and Europe and we hope we’ll be able to provide you more details on that in the subsequent couple of quarters. With this I finish my executive summary and I move on to Critical Power Business update for quarter four.
That’s the next section in the presentation in Critical power business while we service many vertical markets but more than 95% of our revenue comes from telecom infrastructure where we sell our power conversion systems as well as lithium ion batteries to various elements in telecom infrastructure, towers being the biggest of them but including fiber landing stations, telecom exchanges, solar sites, etc. So in a nutshell, our business is dependent on the growth of new towers as well as the replacement of the products which you have installed many years ago. The new tower installed base the new tower addition in Q4.25 was about 7,500.
This was a 26% decline compared to Q4.24 of 10,000. And that’s normal phenomena because of because the CapEx cycle of 5G speed spend and 5G infrastructure spend ended. And this is the time when telcos defer the CAPEX cycle to monetize the 5G Infraspan that they have done. And once every three years the CapEx cycle will restart with the introduction of new technologies such as 6G or others. As far as execom is concerned, we had a 35% degrowth compared to quarter four FY24, but a 95% growth compared to last quarter on a standalone basis and 88% growth on a consolidated basis.
As I mentioned, we have the highest order book. A lot of it is comprising of projects related to BharatNet making the total order book more than 1500 crores. And while we will start with deliveries of some of these big projects in Q1, but for all practical purposes significant volume will start from Q2 onwards. Especially related to this project. Some other key developments in critical power business on next page, page number six. As I mentioned in the executive summary, we are seeing good traction in Africa, Southeast Asia and Middle East. In Africa we signed a frame agreement with a large telco for DC hybrid systems, normal power systems and lithium ion batteries.
We received our first order from Philippines, Myanmar. We’ve been trying here for long. Finally it manifested into some results. We are now also serving the biggest tower company in Saudi Arabia after a couple of trial orders. Now this has become a series order and we have added three new infrastructure companies in India with already more than a million dollars of orders received from the IP companies as well as an Indian telco. All these will go into making a robust pipeline for US and FY26. We are in technology business and we always have to stay ahead of the curve in technology.
So in our critical power business we launched a new power converter as there is larger and larger use of smaller cell small cell technology by Telcos to offload high traffic without to fiber network using small cell. Here different kind of power solutions are used and with launch of this 1.8 kilowatt power converter we’ll be able to cater to that market more effectively than we used to in past. We also invested heavily in making a very optimized and a leading technology leading product for Bharatnet which comprised of which comprises of a smart rack with backend management system, remote management system comprises of a hybrid ups and a 50amp hour lithium ion battery.
So we put all these together as a solution and launched it in this quarter. And in addition to these two key launches we keep working on various types of customized products for our global customers. Customer Requirement I spoke about the order book a couple of times but one thing to note is this order book was less than 200 crores on December 31st at the end of quarter three and it’s now almost eight times little less than eight times higher. Moving on to the EV charger business update, I’m on page eight. So after a lackluster H1 EV sales, the Indian four wheeler industry electric four wheeler industry saw a dramatic rise in second half.
Passenger vehicle sales rose about 31% compared to quarter four 24 and about 21% compared to quarter three 25. What led to this growth? Renewed enthusiasm about the industry but more importantly launch of multiple car models Mahindra BE which is getting extremely popular Creta by Hyundai and there is a lot of buzz about the upcoming launch of electric vehicle by Maruti which I think is going to be as per the public press is going to be somewhere in second half. Somewhere in quarter two. We supplied over 50,000 chargers, most of them home chargers but about 1500 between 1500 to 2000 DC charges as well.
On a standalone basis our revenue was similar to quarter four about 55 crores which is degrowth compared to quarter three but almost same as quarter four 24 on a consolidated basis as well. Our revenue was similar to quarter three CFY 25 at about 103 crores. As I mentioned quarter four was a transition quarter for us where a lot of cost optimization new product launches were in work. They have happened now and we are beginning to see green shoots of those already in our current quarter and with these new products Introduction Efficiency in manufacturing cost optimization we expect a much stronger FY26.
Next page which shows revenue by geography. We acquired Tritium in a bid to be a global company and you can see that through distribution of revenues where USA contributed to about 10% of the revenues UK and Europe about 12%. India is still major and is always going to be center of our focus. About 63% of global revenues and Australia, New Zealand and Southeast Asia contributed to about 15% of our revenue. On next page there are some key developments for EV Charger business Domestic EV Charger business we inducted 11 new charge point operators. They are not large charge point operators because we have already.
They were always part of our customer base but nonetheless very important. Upcoming Charge Point operators we added four new OEMs for our customer list based on a new product launch of 3.3 kilowatt portable charger. We added 3 OEMs for that signed contracts of this product. With 3 OEMs we signed contracts with 2 OEMs for 7.2 kilowatt home charger and with 1 OEM for DC chargers on the new markets for the first time we exported new chargers home chargers to Australia and Brazil. We are also exploring more opportunities of selling home chargers, particularly in Southeast Asia, but in Brazil and Europe as well.
Electric vehicle industry is not just about making cars and selling chargers but enabling the ecosystem as well. We tied up with SBI Green and Mufin Green for financing options of our products to some customers if they want to enable it. And we also signed up with software company Iron Age where in certain use cases we can offer a combined hardware and a software solution. And there’s already been some project wins from major OEMs and housing societies based on this bundled offering. New Launches I’ll skip here because there are some other pages going forward in terms of new revenue streams.
We want to be a full solutions company so while our center of the business will be hardware sales, but we started Charger Related Inc. Services not just for our products but other products as well. End to end turn key services, digital services and also selling our home charger through B2C channels including our own websites, Amazon, etc. These revenue streams albeit will have a low contribution to revenue but are important streams for us to be a full solutions company and also we believe these revenue streams will contribute more significantly in the coming years. The order book has also increased by almost 25% compared to the last quarter in the new product launches on the next page.
One of the biggest launches and we got immediate success by signing some frame contract with three OEMs was spin free. This is a portable charger which customers can carry in their dickey and charge the electric cars in a regular with the help of a regular three pin socket case of emergencies or even use it for regular charging this is built for Indian condition but with global standards and specification. And unlike many other peers who import technology, our technology is fully developed by our team with 100% IP in India and the product will be manufactured in India from July 25.
We we have already had trial runs for this product. The next page shows a very recent launch. So this is for quarter one of this year, but it was a big launch so we have put in this presentation. This was about three, four days ago in May of 25. This is our next generation DC fast charger which we call a Gen 2 DC charger which is a modular architecture from 60 to 400 kilowatt. But apart from many features for reliability user experience, there are many features which help our customers to improve station economics. That’s why we forecast good pipeline for that also.
One major change here is for the first time in India, for literally the first time in India, there is a company company who has developed EV charger controllers for fast DC chargers indigenously. We call that Harmony OS. And this new product is powered from Harmony OS. This also is going to go into production in July 25th. The next product we launch is called a battery energy storage system. You have heard a lot about battery energy storage system being talked about by solar companies, by battery companies. This is also a product in that category but serving the EV charger market.
Because today everybody wants fast charging, especially on highways. And these are areas where the grid is not stable and high power connections are not available easily. Even if they are available, they take a lot of time. Integrating these battery energy storage systems along with low power grid still gives high speed charging all the time. They can also integrate with solar on site solar to reduce the cost of the power. And these are liquid cooled technology based systems which have a much longer life compared to traditional batteries that are available by peers. We have interacted with many of the customers, particularly the charge point operators and the network operators and we feel this is a technology which will be adopted by them for specific use cases, particularly in highways, to reduce the cost of infrastructure or electricity related upgrades and also allow them to deploy fast characters charging at a faster rate.
We launched this in Q4 of 25. We have one, two trial orders and they’ll be executed in the beginning of quarter two FY26 after which hopefully these can convert into series orders as well. The last product launch I want to talk about is Triflex. It’s from the Tritium group of companies which was launched at one of the biggest expo. This is not just a new product but a new platform which redefines what distributed charging is globally. Most of the network operators deploy what we call distributed charging. It’s a product in that category and we are in advanced stage of conversation negotiation with customers to build this pipeline and we’ll be able to provide you that update in the next quarter or the quarter after that.
Overall on tritium’s update, global EV market was tepid in FY25 but recovery has begun. We see green shoots again and since we bought Tritium Group of companies out of bankruptcy the there was a lot of base building that we had to do. There was a lot of restructuring which we had to do to make the companies make the company agile again, customer focused again, technology leading again. We did a variety of things to put this strategy into action. We built a global sales and service team which was decimated earlier. We opened our global support center in Coventry uk.
UK is the geography where we have largest Tritium fleet deployed. We built the first prototypes of this new product that I spoke about and began in depth testing and certification for these products. We officially launched Triflex at the conference in California that I just spoke about. We signed global framework agreements even for our existing products with a couple of large oil and gas majors which allow them to buy from us and continue obtaining field services, SLAs and even the hardware product from us. And as I mentioned we are in advanced discussion for large contracts with leading operators.
We celebrated the install and commissioning of 500 new tritium chargers in this calendar year since January 1st 25th. That’s a big achievement that shows the vote of confidence of customers in our product and gives us confidence of them continuing to buy in future. Overall there has been good development but financially the strategy execution is taking a little longer than expected. But I continue to remain positive on long term potential of Tritium to help Execom become one of the leaders in EV charging globally. With that I will with that my business update is finished but I will give a quick update on our upcoming plant for which we raised the funds in the IPO and after that I’ll pass to Shiraz for the financial update.
This is page number 23. You see the most updated photos of the upcoming plant. There are some revised timelines over here which go all the way from June till this is about 2 to 3 month delay from our previous estimated timeline and some of those reasons are pointed in the next slide. This does not cause us any I just want to reassure all the investors this delay does not cause us any shortfall in revenue because we are well equipped to do. Our targets especially of Q1 and Q2 in the current facility will be little stretched at the end of Q2 and Q3, but that’s when this factory comes live.
Some of the delay in execution was due to unforeseen geological changes. That was the main reason Hyderabad is known for having very dense rock formations and we encountered a lot of that towards the mature stages of development. Also there was a road that collapsed into our area due to heavy rainfall and there was a lot of time spent with the government to remake that. But then we decided to do it ourselves finally and this took a lot of time as well. So mainly the geological reasons caused some delay, but in grand scheme of things it’s still a project which is going exactly as per the aspiration of what a new generation factory should look like.
We are working in a lot of detail detail to have the right balance of automation and the manpower to achieve the desired efficiency from this factory in the long run. And we’ll be happy to share considerable progress in the next quarter call for this facility. But the revised timeline of go live for this is September of September of 25 and we’ll do whatever best in our ability to continuously try and compress this timeline. Thank you everyone. Thank you dear shareholders, investors and with that I’ll pass to Shiraz to give you the financial update.
Shiraz Khanna — Chief Financial Officer
Thank you so much Anand for a detailed walkthrough of the business update. And good afternoon to everyone. I am Sharad, the CFO for exicom. Anand has given a pretty detailed update on the financials, also touched upon them as well. But I just want to have an opening statement that the year 2425 has been a bit of challenge from some of the external factors. The same two policy which is basically driving the EV rollout in the country came to an end on 31st of March 24th and a new PM E drive policy came or actually announced on the 15th of September and thereafter got implemented.
So there was a gap in terms of the push from the government probably because of the elections that came in starting in April which ended in June 24 and by the time the new government formed and the policies came, it took a while to get that push back into the drive of ev. Similarly we saw some projects that were being run earlier in the previous year of 2324 which was uncovered villages, upgradation of network especially in BSNN and so on so forth ran through till Q1 of 2425 which was April, May, June and and then with the government election and stuff.
The new Bharatnet policy, or rather the next rollout of Bharatnat policy came in later and we won substantial orders thereafter. So the year has been a little bit of challenging. I’ll cover the quickly on financials which you must have seen. Standalone discovery we are much better at 212 crores versus 147 in previous quarter. And that’s basically because we got a huge increase in the critical power revenue. EV standalone remains almost the same as what we did in this quarter vis a vis q4 of last year. A slight dip from previous three months. The gross margins have again had its difficulty because of the hardening of competition which Anand mentioned.
But this year now it’s looking a little better. So the gross margins have had a challenge because of either rejection, the sales and of course the percentage coming down. And EBITDA of course has an impact of the sales and margins on that with a bit of cost of fixed cost coming into this. In terms of full year financials we did 866 crore last year standalone we’re now at 752. And as Anand mentioned, while we sold more units in ev, the prices had corrected or can come down and so more push on sales with the revenue gross margins slightly from 29.9% to about 27%.
And that’s only because of the tightening competition which has a cycle in any business that we talk about. EBITDA again has an impact because of the sales dip this year and slight margin diploma and we have a slight increase in the fixed cost where we’ve hired a few more people for our expansion which will help us grow in the coming years. Moving on to the consolidated financials, this quarter has seen much better numbers of 265 as a V196 crore over previous quarter though it is slightly lower from the Q4 numbers. I think the numbers this quarter has seen because tritium has come in with about approximately 50 crores of revenue and it had another almost same number.
So it’s done about 97 crore in this 2 quarters last 2 quarters which is helping EV grow better. Gross margins again in a consolidated quarterly are better because of tritium. The cost of goods sold. We got tritium at a pretty, I would say good price. So the sales has a better gross margin that we will see and that’s where the percentage of gross margin increases. However, given that Tritium is still at a startup stage and it’s just been 2/4, it will take a bit of time to come back. And while it Is showing good talk.
Top line already will take a little while to get into in profitability and that’s where you see a dip in terms of ebitda. However this quarter overall we are better off than the previous quarter and we are in black on the red in terms of consolidated revenue. Again we are slightly lower in terms of overall sales margins. Remains more more or less same from 273 crore to last full year to 270 crore. EBITDA takes a little bite because of the tritium fixed cost and expense getting clubbed which we saw last quarter and this quarter. But in coming financial year this should start improving in terms of this.
So overall I think while it’s been a challenging year, we are looking at the next year very positively. We’re looking at the investors put in already about 80 crores in the last quarter itself and infused it into the company. And we also gone ahead and taken in fact the shareholders have approved increase in authorized capital by 25 crores to now 155 crores. And yesterday in the board meeting we’ve taken approval in principal approval to look at exploring raising of funds which will help us ease out the investment that we are doing for long term in terms of treaty and we look forward to a better financial year in 2526.
Thank you so much on this and I will now hand it back to the moderator for Q and a session.
Questions and Answers:
operator
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 the touchtone phone. 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 QSI.
Anant Nahata
Moderator. Just give us 30 seconds before just start this.
operator
Sure, sir.
Anant Nahata
Okay, you can start.
operator
The first question is from the line of Harid Goel, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hello. Thank you for the opportunity. So hello sir, my first question is. So you have given the guidance for FY26, 50% on a standalone basis and 100% revenue growth on a consolidated basis. So like how much confident are you on this?
Anant Nahata
Sorry, so you said 50% on a standalone basis. Can you repeat the.
Unidentified Participant
Yeah, I believe. Yeah. And 100%. 100% growth on a consolidated basis. You have given guidance for FY26. So just wanted to know how much confident are you in achieving this number.
Anant Nahata
So we have released the guidance yesterday in our press release. So there is a 50% growth in revenue on a standalone basis and a multifold growth in EBITDA on a standalone basis. Obviously we have release the guidance that is based on what we feel we can achieve based on the market momentum, the order book we have and the work we are under doing. So we feel fairly confident. Again some of our the two industries we work on. One is one may be volatile quarter to quarter which is critical power, but annually I think it’s stable and EV charging industry is new.
So I think the only request to the shareholders will be to see this as an annual figure. Some of the quarter numbers may be slightly volatile just because of the nature of our industry, but the feel very confident of this guidance that we have given.
Unidentified Participant
Got it. Thank you sir. And my second question is since you are exporting to us and it’s contributing to around 10% and recently like Trump passed the bill that they won’t be focusing on the green energy, so will there be an impact in the business? And secondly, like what are we doing for the completion? Like for the. Because of completion, our revenue and profit margin went down, right?
Anant Nahata
Yes. I’ll answer the second part first. So in quarter four, yes our margins did decline, but we have to be just very vigilant on our cost structure and efficiency because I do feel the market has bottomed out. So thanks to that cost pressure which did hurt us in quarter four, we have been able to do very sharp optimization in our cost structure, whether of the product, whether of the people, whether of the process. And that will bring start bringing fruit from quarter one and more so from quarter two as well. Regarding exports, we are not exporting to us from India through tritium whose factory is in us.
They do supply in us. And you know the EV charging market will be there, right? Yes, politically there may be statements, you know, one way or the other, but you know, electric electrification is a global phenomenon. It cannot be stopped. So we are bullish on the market. FY25 was weak for EV charging, sorry, EV cars globally, but with all the billions of dollars of investment the car companies have made and generally as electrification is becoming cheaper and cheaper, we see good demand, good market and if anything people who have companies who have factories in us will tend to gain from whatever is happening politically.
And tritium is one of those companies which in my view does stand to gain. Thank you.
Unidentified Participant
Thank you sir. And sir, one more last question. Since like last time in the conference call you mentioned that you are not participating in many of the government contracts because they are the margin pressure and all comes in and you don’t want to lower down the cost and all. So in this quarter, coming quarter, are you thinking to change your strategy like participate in government contracts and all?
Anant Nahata
Well, I may have miscommunicated slightly. My message was that we want to make sure we are able to use all our resources to do viable business. Right. And if we have enough viable business and in that case there is no reason to take unviable business. Right. So, so we keep as an EA key we don’t bid in government contracts at all. We do bid in government contracts from time to time. Critical power lot of our businesses, you know, if not directly but indirectly government we may be working for system integrators who serve the government, PSUs etc.
My comment was more about EV charging where at least at that time some irrational pricing was happening in government tenders. And that’s why today one big problem for these oil PSUs is that a significant number of chargers are not working. Right. So I think the government has strengthened the local content thing. So which will make the bids more transparent compared to before as well as we’ll keep looking at this opportunity from time to time and if at business terms which will be aggressive, if the opportunity makes sense, we will be the first one to grab those opportunities.
But they don’t make sense then there is no point of wasting company’s resources on unviable business.
Unidentified Participant
Thank you sir.
operator
Thank you. The next question is from the line of Priyanshi Kakane from Brighter Mind Asset Management company. Please go ahead.
Sriram
Hello.
Shiraz Khanna
Yeah, hello.
Anant Nahata
Yes.
Sriram
Yeah, from brightermind Equity Advisor. So thank you for giving us the opportunity. Starting the year with more positive outlook. FY26. So that sounds, you know, good to us, to our shareholders. The first thing is from critical power segment. So we are having around 1500 crore order book this year, FY26. So what is the pipeline that we are building in FY26?
Anant Nahata
I didn’t get the last sentence. What is the,
Sriram
what is the order. Pipeline we are currently having for FY26 that we are bidding.
Anant Nahata
So I think I’ve mentioned this in the presentation that we have provided overall revenue guidance as well. But out of the 1500 crore order book it’s a mix of one large, you know, couple of large orders that we have for the BharatNet project and then multiple customers, domestic telcos, tower companies, exports, etc. So the you know from particularly BharatNet project that is to be executed over three years but even you know this year we’ll have a very so part of the 1500 crore pipeline we have to all have to be executed this year and a big part of the pipeline which is about I think thousand crores would be over next three years.
Sriram
Second question is since our critical power business depends upon the new tower addition and replacement of towers so currently I mean what percentage of towers are to be replaced in your statement or for continuation of 5G and the second part of that question is India is you know testing its 660 to launch in 2030 so how we are preparing ourselves for that.
Anant Nahata
Yeah so as you rightly said the business depends on new tower addition as well as not tower replacement but replacement of our equipment inside the tower. Right So I have a simple thumb rule formula and take this directionally not exactly when there is deployment going on for 4G 5G usually the ratio of our revenue becomes 50% or 60% for new equipment and 40 to 50% for replacement equipment which are replacing end of life equipment which have become inefficient or whatever (ends abruptly)