Genus Power Infrastructures Limited (GENUSPOWER) Q2 FY23 Earnings Concall Transcript

Genus Power Infrastructures Limited (NSE:GENUSPOWER) Q2 FY23 Earnings Concall dated Nov. 14, 2022

Corporate Participants:

Jitendra Kumar Agarwal — Joint Managing Director

Analysts:

Anshuman Ashit — ICICI Securities — Analyst

Nikhil Jain — Galaxy International — Analyst

Srijan Sinha — Future Generali India Life Insurance — Analyst

Shreya Varma — MR Securities — Analyst

Akash Mehta — Cape Investment — Analyst

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

Analyst — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Genus Power Infrastructures Limited Q2 FY ’23 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Jitendra Agarwal, Joint Managing Director of Genus Power Infrastructures Limited. Thank you, and over to sir.

Jitendra Kumar Agarwal — Joint Managing Director

Good evening, everyone. A very warm welcome to the Q2 FY ’23 earnings call of Genus Power. Along with me, I have Mr. Kailash Agarwal, the Vice Chairman; and SGA, our Investor Relation Advisor. The results and investor presentations are uploaded on the stock exchange and company website. I hope everybody has had a chance to look at it.

So we have recorded sales of INR219 crores in quarter two FY ’23, up by 23% as compared to INR178 crores in last quarter. Revenue growth for quarter two was impacted on account of reduced capacity utilization due to disruptions and supply of semiconductors and some other essential and exomic [Phonetic] components. However, we anticipate a sharp revenue rebound in H2 on account of robust order book and a healthy order in flow and normalcy in supply chain to be restored within the next three to four months. Post that, we expect to carry forward that momentum in financial year ’24.

For quarter two FY ’23 EBITDA stood at INR17 crores as compared to INR15 crores in last quarter, an increase of 16%. Higher prices of raw materials and a lack of operating leverage as a result of lower capacity utilization continued to hamper operating margins. Profit after taxes stood at INR10 crores as compared to INR7 crores in the last quarter, a growth of 56% on Y-on-Y basis, quarter two — when comparing quarter two [Indecipherable] from quarter two FY ’22.

In April, 2022, we received LOA for appointment of AMISP, including design of AMI system with supply, installation and commissioning of about 10 lakhs smart prepaid meters, DT meter level energy accounting and FMS for these meters from a state utility. That total order worth INR28.57 crores net of tax is the largest single order finalized by any statutory in India for AMISP during that period.

As on 30th September 2022, our order book stood at INR1,761 [Phonetic] crore net of tax. On 30th July 2022, Prime Minister Shri Narendra Modiji launched the Power Ministry’s flagship RDSS, Revamped Distribution Sector Scheme, which aims to improve the operational efficiencies and financial sustainability of stressed power distribution company and state power departments, while modernizing and strengthening distribution infrastructure. The union cabinet has approved an outlay of over INR3 lakh crores for RDSS which the ministry also describes as reforms based result linked scheme. Discoms suffer losses due to power theft, AT&C losses, meter tampering, inaccurate billing. RDSS is touted as a lifeline that can help discoms turn around their fortunes and strengthen the power sector.

RDSS is intended to assists discoms in improving their operational efficiencies, reducing their losses and becoming financially sustainable. Half of the scheme outlay is for the better feeder and transformer metering and prepaid smart meters. The scheme aims to reduce technical and commercial losses to pan India levels of 12% to 15% by 2024 ’25 and eliminate cost revenue gaps by ’24-’25. Rural Electrification Corporation and Power Finance Corporation have been nominated as the nodal agency for this scheme. One expect that distribution ideas from previous government schemes [Indecipherable] on mandatory smart metering infrastructure. Smart meter enable consumers to learn about their consumption patterns, while also assisting utilities with system monitoring and customer billing without the need of manual intervention. This can significantly reduce discoms billing and collection can lead to significant operational improvements. The schemes impact can be felt on the ground and almost every state electricity board has issued inquiries and float a tender for smart metering solution. As a result, we anticipate strong order inflow in coming quarter of initial ’23.

All reforms implemented to improve the efficiency of the power sector over the last three decades have followed the letter of law while [Indecipherable].

The central government has done away with one size fits all approach of previous schemes. Most of the apprehensions of the SEBs has been addressed by customizing the policy guideline [Indecipherable] respective special issues, does all stakeholders are on board and the rollout of the smart meeting scheme across inland anticipated to be very smooth of it. With the implementation of RDSS, we expect the entire landscape of the Indian metering industry to drastically change as multiple fold jump in the annual industry size. This will also lead to momentum shift from conventional meters to smart meters in Indian metering industry, thus enabling much improved operating margins. The capex model is now getting increasingly accepted among SCBs wherein the capex will be undertaken by AMISPs, also known as system integrators under the design, build, finance, own, operate and transfer arrangement. From the monthly savings made on account of the smart meters, the SEB with entertain monthly payments to system indicators for a period of six to eight years known as the pay as you save model.

All these developments will calculate into robust order inflows, healthy top line growth, better operating margins as well as improved working capital cycle for coming six to seven years starting from next quarter, next [Indecipherable] for metering industry. We plan to play dual role of being system integrators ourselves as well as being vendors to other system integrators for the smart metering requirements. We are confident of significant improvement in our business operations in half yearly — in the next half of financial year 2023.

We can now open the line for Q&A.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Anshuman Ashit from ICIC Securities. Please go ahead.

Anshuman Ashit — ICICI Securities — Analyst

Good afternoon sir. Can you hear me now?

Jitendra Kumar Agarwal — Joint Managing Director

Yeah, yeah we can hear you.

Anshuman Ashit — ICICI Securities — Analyst

Okay, thank you for taking my question sir. So the first question is on the tenders which have been floated recently. If you could quantify and give us some more details on which states have come out with what amount of tenders and how confident are you of these being awarded over the next three to six months?

Jitendra Kumar Agarwal — Joint Managing Director

So I’ll just give the brief in the industry of everyone, the tenders to the tune of INR60,000 crores are in the market right now. And this includes the already participated tender, which will be participated. So tenders which are already participated to the tune of INR36,000 crores within the capex model of AMISP. Not every tender we must participate as a system integrator. So we participate a few tenders as system integrators, few tenders as a manufacturer. As I said earlier in my statement that we will be playing the dual role in this industry. So that capex model like tender production of INR36,000 crores, which are already participated. At national, we got tenders to the tune of INR726 crores have already participated. Live tender, which are for far smart meters, which are on the capex model are INR950 crores, which are already participated. So in total, around INR38,000 crores tender has been participated. They are from different state utilities from UP, [Indecipherable] for Gujarat, BRPL, Jharkhand, Pondicherry, Tamil Nadu.

So this is the tenders which are already participated. Tender, which will be participated in the next, I would say, two to three months, which are already in the market, but it will be participated in to the tune of — for capex model as [Indecipherable] from multiple space has come out with the system integrated tenders on the product model. And thus, for the conventional meters it will be participated in the next couple of months to the tune INR50 crores. So in total, that is around INR20,000 crores tenders will be participated in the next two to three months. So in total, tenders either participated or to be to the tune of INR56,700 crores.

Anshuman Ashit — ICICI Securities — Analyst

INR56,700 crores sir, would you please repeat the conventional meter of forthcoming tenders, the amount what you had said?

Jitendra Kumar Agarwal — Joint Managing Director

As I said that conventional meter tenders which are already participated to the tune of INR950 crores, which will be participated in next two to three months in the tune of INR1,045 crores.

Anshuman Ashit — ICICI Securities — Analyst

Sir, so we already have Bihar in our fold as AMISP how much more capacity and capability do we have to take AMISP orders?

Jitendra Kumar Agarwal — Joint Managing Director

As I said, Genus will be playing the dual role. As you see there are like tenders to the tune of INR36,000 crores is already been participated. So Genus has not participated as system integrators in all that stuff. So we have decided our own capacity, our appetite to quote and system integrators, and we are working on that lines only.

Anshuman Ashit — ICICI Securities — Analyst

Okay. So off late, we have seen some slowdown in the installation. So if I look at the smart meter installation monthly data, so last month, in fact, it has been only 85,000.Is there a particular reason for it? If you could give some color on that?

Jitendra Kumar Agarwal — Joint Managing Director

There is no particular reason only last month because very few tenders are on ground right now. So the real momentum has come in the last three to four months only when the bids are getting decided a bit coming out. So real momentum of installation, we will see from next year onward. So this 85,000 or maybe because of the very limited orders which are decided on the ground. That can be the only reason and other reason can be Diwali holidays and at definitely across my 20 years experience in installation business, Diwali month and the chhath month are the lowest always across the country.

Anshuman Ashit — ICICI Securities — Analyst

Understood, sir. Sir, next question is on our guidance for H2. So do we still stand by our EBITDA margin guidance for FY ’23? Or will we see a bit of drop in it?

Jitendra Kumar Agarwal — Joint Managing Director

So we are maintaining our — what guidance we gave in the last quarter in the conference call, we are maintaining that, but we don’t see not achieving it.

Anshuman Ashit — ICICI Securities — Analyst

So given the first half has been 7.7%, so EBITDA margin of 13% to achieve that, we need to have more than 15% growth EBITDA margins in the second half. So do you see that as a possibility?

Jitendra Kumar Agarwal — Joint Managing Director

So in the last conference call, we gave you the guidance of 12% to 13%. I am confident I guess we should be able to achieve that.

Anshuman Ashit — ICICI Securities — Analyst

Sir, how does the semiconductor supply issue hand out, where do we currently stand and how are we getting the supplies as it eased a bit?

Jitendra Kumar Agarwal — Joint Managing Director

So I won’t say is it back to normalcy. It will still take some time. As I [Indecipherable] also that it will take three to four months to become further normal, but it is improving every day.

Anshuman Ashit — ICICI Securities — Analyst

Sir, one final question before I move back into the queue. Could you please give us the order book breakup in terms of smart conventional, FMS and all?

Jitendra Kumar Agarwal — Joint Managing Director

So our order book expense at INR1,700 crores at INR1761 crores net tax. Out of that supply portion is around INR1,000 crores. So you want the breakup of supply and system integration wise or conventional and smart meters?

Anshuman Ashit — ICICI Securities — Analyst

Conventional, smart, SMS. And so what portion is sort of expenses, if you can share that.

Jitendra Kumar Agarwal — Joint Managing Director

Around INR100 crores is the export orders.

Anshuman Ashit — ICICI Securities — Analyst

Fine. The breakup between conventional and smart.

Jitendra Kumar Agarwal — Joint Managing Director

Conventional is around INR200 crores. And if smart meters supply is around INR600 crores, INR750 crores, INR200 crores is the conventional leaders. INR100 crore is export order and remaining is all FMS and installation.

Anshuman Ashit — ICICI Securities — Analyst

Okay. Understood sir. Thank you sir and all the best I will join back in the queue.

Jitendra Kumar Agarwal — Joint Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Nikhil Jain from Galaxy International. Please go ahead.

Nikhil Jain — Galaxy International — Analyst

Thank you for the opportunity. I just wanted to understand, in the last quarter, let’s say, July to September, how much tenders were actually awarded? Do you have any idea?

Jitendra Kumar Agarwal — Joint Managing Director

Can you repeat your question? I just — somewhere in between.

Nikhil Jain — Galaxy International — Analyst

No, I was just trying to understand, in the last quarter, so like while the tender processes have started, like how much worth of tenders were awarded?

Jitendra Kumar Agarwal — Joint Managing Director

In last quarter?

Nikhil Jain — Galaxy International — Analyst

Last three, four months, let’s say, from — since the time the activity has [Indecipherable].Yes, not to us but to the industry globally or to the industry here

Jitendra Kumar Agarwal — Joint Managing Director

I don’t have the exact figures with me, so I don’t want to comment on that because very few tenders have been decided in the last two quarters. But cannot give you any figure right now often.

Nikhil Jain — Galaxy International — Analyst

Okay. And the second question was that we read in the news that Adani has actually got an order for Bombay for 10 lakh meters plus kind of a thing –.

Jitendra Kumar Agarwal — Joint Managing Director

From [Indecipherable]

Nikhil Jain — Galaxy International — Analyst

So is it like — we are also participating or supplying to them or we will be able to part take in that thing or that’s not [Indecipherable].

Jitendra Kumar Agarwal — Joint Managing Director

We are there as of now, we are their main vendors. We have been supplying maximum smart meters purchased by Adani is all by Genus in their own utility in Mumbai. Rather, we have the 100% market share of smart meters in Adani Electricity Mumbai. So we’ll definitely have our own share in BSD supply also.

Nikhil Jain — Galaxy International — Analyst

But that is not included as part of our order book or is it already included?

Jitendra Kumar Agarwal — Joint Managing Director

No, that is not — no. Whatever we have already purchase order we have received, that is part of our order book. But BSD they have not yet released the order.

Nikhil Jain — Galaxy International — Analyst

Okay. But let’s say, from our past experiences and with our good relations with Adani, you would definitely be participating in that kind of [Speech Overlap]

Jitendra Kumar Agarwal — Joint Managing Director

We are confident of getting business from them.

Nikhil Jain — Galaxy International — Analyst

Okay, fine. That’s all from my side. Thank you.

Operator

Thank you. The next question is from the line of Srijan Sinha from Future Generali India Life Insurance. Please go ahead.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Hello sir, just a couple of questions. One, you mentioned that there are INR36,000 crores worth of orders where tenders have already been floated. The AMISP I’m talking about, what would be quantum where Genus has participated?

Jitendra Kumar Agarwal — Joint Managing Director

[Speech Overlap] so our quantum will be of this around 30% is quoted by us also as system integrators. And all the remaining tenders we are working with almost everybody as major supply.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. So out of INR36,000 crores, you would have participated in, let’s say INR10,000 crore, INR12,000 crores directly plus you will be applying to the other AMISP players, is that right?

Jitendra Kumar Agarwal — Joint Managing Director

Yes, that’s right.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. And sir, my second question is, is Adani manufacturing the meter on its own or are they completely sourcing it from other players?

Jitendra Kumar Agarwal — Joint Managing Director

As of now they are completely sourcing it from the market. And we are the main suppliers from Mumbai utility [Speech Overlap]

Srijan Sinha — Future Generali India Life Insurance — Analyst

[Speech Overlap] a share in Mumbai utility?

Jitendra Kumar Agarwal — Joint Managing Director

For their smart makers. As of now — I’m talking about as of now.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Yeah, of course, of course. Sir, my second question is on — you mentioned that you expect a sharp rebound in revenues in H2. We have already witnessed significant sequential improvement in Q2 INR180 crores going to INR220 crores. What is the number that we are looking at for Q3 and Q4? What can be the potential top line for us in Q3, Q4?

Jitendra Kumar Agarwal — Joint Managing Director

In the last con call, I reduced the guidance, the overall guidance I gave around INR1,000 crores. So we definitely expect that to be done looking into the performance, what is going on for quarter three and quarter four.

Srijan Sinha — Future Generali India Life Insurance — Analyst

INR1,000 crores for the full year, meaning that [Speech Overlap] so we should be doing about INR300 crores in both the quarters on an average?

Jitendra Kumar Agarwal — Joint Managing Director

Yes, on an average.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. And sir, have we started supplying to Bihar utility the AMISP order?

Jitendra Kumar Agarwal — Joint Managing Director

No, we will start from this month end.

Srijan Sinha — Future Generali India Life Insurance — Analyst

This month end we will start.

Jitendra Kumar Agarwal — Joint Managing Director

And our pilot will start from this month end.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. And sir, apart from the Bihar AMISP order that we won, has there been any other orders in Q2 for us? Have we won any other orders?

Jitendra Kumar Agarwal — Joint Managing Director

Nothing of this side, but we have good supply orders, we have been winning from different utilities of small, small sizes, but nothing of this size.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. So sir, internally, what is the number that you are working with in terms of order book, let’s say, for this fiscal year and over the next two quarters, what would be the new number which you say will excite you in terms of order book? Which will make you happy that okay we have done our — we have achieved our targets?

Jitendra Kumar Agarwal — Joint Managing Director

I don’t want to comment on any number because it gives a lot of idea of how we are thinking about the margins. I want to be little conservative speaking those numbers. But yes, we are targeting the market with the best potential that we have. And you will see a very, very healthy order book in times to come.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. And my final question, sir, these orders that are being — the INR60,000 crores worth of tenders that is in the market, these are fixed price order or is there some bit of input prices [Speech Overlap]

Jitendra Kumar Agarwal — Joint Managing Director

These are all fixed price orders. In our business, there is no price variation cost. They are all fixed contenders.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Okay. Okay, sir. Thank you. I will rejoin the queue in case if I have any other question.

Jitendra Kumar Agarwal — Joint Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Shreya Varma [Phonetic] from MR Securities. Please go ahead.

Shreya Varma — MR Securities — Analyst

Thank you for the opportunity first. I just had a couple of questions. Firstly, when do you think of supply of semiconductors will return to normal?

Jitendra Kumar Agarwal — Joint Managing Director

So as I said earlier, it is improving by the day, but it is not yet normal, not yet to the pre-COVID levels. That will take some three to four months.

Shreya Varma — MR Securities — Analyst

Okay. And what are the primary reasons for decline in operating margins in H1 despite increased sales? What has been our capacity utilization for the first half?

Jitendra Kumar Agarwal — Joint Managing Director

As I said during the speech also it is due to lower capacity utilization and some increase in the raw material prices.

Shreya Varma — MR Securities — Analyst

And can we expect the revenue traction to pick up given our strong order book? And then can we expect the company to return to its historical margin profile is 16% to 17%?

Jitendra Kumar Agarwal — Joint Managing Director

Next financial year, definitely, we’ll be back to a normal number.

Shreya Varma — MR Securities — Analyst

Okay. So I also wanted to ask what are the factors that led to decrease in our financing costs in Q2?

Jitendra Kumar Agarwal — Joint Managing Director

Can you repeat that?

Shreya Varma — MR Securities — Analyst

What are the factors that led to a decrease in our financing cost in Q2 FY ’22?

Jitendra Kumar Agarwal — Joint Managing Director

Actually, that is because of the improvement in working capital earlier because of the COVID. A lot of payments were getting delayed in the electricity boards and all. So there is a significant improvement in the working capital cycle and the payments we received back. So there was less utilization of the working capital limits. So that resulted in the improvement in the financial cost for this quarter.

Shreya Varma — MR Securities — Analyst

Okay. Right. That helps. And how much top line growth and operating margin expansion can we expect in H2 FY ’23?

Jitendra Kumar Agarwal — Joint Managing Director

So as I said earlier, we gave the guidance of around INR1,000 crores to be achieved in this financial year in the last conference call, and we are confident of achieving that, and we are maintaining the same guidance for the next two quarters.

Shreya Varma — MR Securities — Analyst

Okay. And what is the same guidance for FY ’24 to next year? If you could give some color?

Jitendra Kumar Agarwal — Joint Managing Director

So it will be much, much better from wherever we are today. I don’t want to speak on any numbers right now, like we would like to give guidance closer to the financial year.

Shreya Varma — MR Securities — Analyst

Right. Thank you so much. That answers all my question, thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Akash Mehta [Phonetic] from Cape Investment [Phonetic]. Please go ahead.

Akash Mehta — Cape Investment — Analyst

Hello sir, good afternoon. I had three questions mainly. So first on the capex side. So what is the level of capital expenditure that the company is required to make for participating as system integrator say coming in the next two years?

Jitendra Kumar Agarwal — Joint Managing Director

Kailash sir, you want to answer this?

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

No, no capex, I think there won’t be much capex required. We already have a meter manufacturing capacity of 10 million meters, we have to increase, even if we have to increase to 15 million meters or 20 million meters that won’t require a lot of capex also. That will be — of course it will be done, it will be hardly INR25 crores, INR30 crores for making it just [Indecipherable]

Jitendra Kumar Agarwal — Joint Managing Director

So you can just assume that for doubling the capacity, there might be capex requirement in next two years [Indecipherable]

Akash Mehta — Cape Investment — Analyst

Okay. But given the exact multifold increase in size, basically, are we — and when will be required to undertake this capex, guidelines on that?

Jitendra Kumar Agarwal — Joint Managing Director

Sorry, can you come again, please?

Akash Mehta — Cape Investment — Analyst

In terms of the time line, when will we be required to take this expecting the multiple [Speech Overlap]

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

That depends on the order book, how we build up order in the next three to six months. Right now, we have a 10 million-meter capacity, and we had highest — we have made around 7 million meters and all. We have a sufficient capacity to grow at the existing capacities and all. So basically, that — and it takes hardly a six months’ time to increase the capacity and all. That won’t be — we will take a decision on this in next financial year in the month of April, but our order book will be at the closure of this financial year.

Operator

Thank you. Sir, we don’t have the current participant in the queue. [Operator Instructions] The next question is from the line of [Indecipherable]. Please go ahead. Your line has been unmuted. Please proceed with your question.

Analyst — — Analyst

Yeah, thank you for the opportunity. I has some questions. So does the company have any significant entry barriers that give it an advantage over its competitors? And given the expected multifold increase in the industry size, are we witnessing any new players entering the smart metering industry?

Jitendra Kumar Agarwal — Joint Managing Director

Being the leader of the industry and providing end-to-end connections, I don’t take there is entry barrier for others to do it since we have been doing it and the reach what we have created for ourselves across the country is definitely not easy for anyone to do it and they will need a significant time to reach to this level. It’s definitely not easy for any one new coming in and becoming and creating the reach, the kind of reach Genus has across the country. So that is one of the major — and the complete product range end-to-end and all kind of certifications, what we have, we definitely need three to four years minimum time to create this kind of technical capability certification approvals. So these are some major entry barriers, I would say, for any new entries to come. So industry is growing, new people are coming. So — but I don’t see a major influx of a lot of new companies coming in. Old companies, which were already into the conventional meter business, yes, they are moving from conventional meters to smart meters. That is what we are witnessing.

Analyst — — Analyst

Okay. Okay. Got it. Got it. My second question was, will the AMISP or the capex model have a negative impact on company’s working capital cycle and additional strain on the balance sheet? And can you explain in detail how our role or as a system integrator will impact our overall business operations?

Jitendra Kumar Agarwal — Joint Managing Director

No — [Speech Overlap]

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

You have to understand that the company has already — have told earlier also that company is already planning to take all this business in the subsidiaries of company or that company has already made a few subsidiaries, and we will be participating in a tender few through the main company and few through the subsidiaries companies and all. And there, the company will be acting as a supplier of meters to them. And then — and we will be doing a fund raising on those subsidiaries for executing those projects. That already we have told earlier also in a given the exchanges also in this time results. So basically, we won’t be taking too much of a strain on our balance sheet. We will also going forward too much of debt on our balance sheet directly as we have clear plans that we will be taking mostly of the business in subsidiary companies and raising funds in those companies for execution of those projects.

Analyst — — Analyst

Okay. Okay. Got it. Just the last one, how much revenue growth can we expect from the current level in the next three to four years? And also with the smart meter replacing the traditional meters, what is our outlook for operating margins in the coming year for the overall industry and Genus Power?

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

So that we will — this guidance, we will be in liking to give in the concall of fourth quarter of this financial year because we had a lot of business is coming in the market issues. Business is coming in the market. So we are aggressively bidding all that and we just want to build our order book and we see that how much we will be able to bid our order book. All our plans and everything will be depending on the order book. So it’s on it better from our side to give a guidance after three to four months on that.

Analyst — — Analyst

Okay. Understood. Thanks, so that was it from my side. It was helpful thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Srijan Sinha from Future Generali India Life Insurance. Please go ahead.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Sir, I just wanted to check on the power grid order. They were supposed to float a INR1 crore meter order, has that order been floated yet? Or are you still waiting for that?

Jitendra Kumar Agarwal — Joint Managing Director

That tender is already floated. We are also bidding that tender. So POC is going on right now. I expect the order to be decided in the next couple of months.

Srijan Sinha — Future Generali India Life Insurance — Analyst

Next couple of months. Okay. And sir, my second question is on the AMISP piece. I mean what is the kind of IRR that you are looking at, let’s say, in your Assam project or any other project, what’s the assumption that you build in — when you bid for the those models?

Kailash Chandra Agarwal — Vice-Chairman (Non-Executive, Non-Independent)

[Speech Overlap] I’m answering that. Basically, we would not like to give any numbers on that. Right now, a lot of orders are going [Speech Overlap]

Srijan Sinha — Future Generali India Life Insurance — Analyst

Sure sir. I understand that. Okay, thanks a lot sir.

Operator

Thank you. [Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Jitendra Agarwal for his closing comments.

Jitendra Kumar Agarwal — Joint Managing Director

Well thank you, everyone. We apply our deep industry domain knowledge to manufacture quality products and successfully resolve our clients’ challenges. We are confident of delivering sustainable growth as it is on the back of robust processes. The rapid adoption of smart meters over the coming years, we are committed to considering to deliver top-notch innovative smart meeting products to meet evolving demand in the Indian marketplace. We shall continue to raise the bar in stride to maintain our leadership position. In case you have any further queries, please get in touch with SGA, our Investors Relation Advisor.

So thank you everyone. Take care. Be safe, thank you.

Operator

[Operator Closing Remarks]