Shree OSFM E-Mobility Ltd (NSE: SHREEOSFM) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Nitin Shanbhag — Chairman and Whole-Time Director
Unidentified Speaker
Analysts:
Unidentified Participant
Presentation:
Operator
Good afternoon, everyone, and thank you on behalf of Kirin Advisors. I welcome you all to the conference call of Shree OSFM E-Mobility Limited. From management team, we have Mr. Nitin Bhagirath Shanbhag, Chairman and Whole-Time Director, and now I hand over the call to Mr. Nitin. Over to you, sir.
Nitin Shanbhag — Chairman and Whole-Time Director
Thank you, ma’am. Thank you, and welcome, everybody, on board to the first half of financial year ’24-’25. Thank you for taking time out on a Thursday afternoon to join us and honor and share the financial results and our growth journey post IPO. This is our second financial report that we are presenting to our investment community, and I’m sure it was uploaded yesterday, so most of you would have gone through it. But however, if you see we have performed better over our last — if you compare our ’23 first half and ’24 first half. So we have performed better in all areas.
Our topline has increased by about 23% over last year. Our EBITDA reached INR9.81 crores, which is a growth of 24.31%. EBITDA margin expanded slightly to 13.33%. Net profit rose substantially by 115% to INR4.78 crores. So net profit margin has improved by 296 basis points to 6.94%. Our EPS also grew by 55%, reaching to INR3.29. This is what we’ve done in the first half of the financial year ’24-’25.
As most of you know and have been probably associated with us since the IPO journey, our approach towards the business is conservative, consistent profit, and because we are in the service industry, take on what is delivered, which ensures continuity for the next couple of years because we are in a pretty sensitive business in terms of service delivery, which is on a score of 1 to 10, 9 is the service delivery capability of a particular vendor for our client.
Some of you would have gone visited our website and you have seen that we have marquee clients like Accenture, Morgan Stanley, JPMorgan, Barclays, where their expectation of service delivery is very high. And we are lucky and thanks to our team performance, our processes, our systems that are in place, we are consistently delivering. Each of the clients that I mentioned are more than 10 to 11 years in our client list.
And with the post-IPO, earlier, we were doing a few geographies for them. And we’ve got an okay from our clients to serve them across India, which is going to have a substantial benefit in the terms of all aspects of the financials, right, from topline to better EBITDA to higher profit margins. This is as far as the present business that we’ve been doing for the last 22 years. Now there is a new angle in our business, which is the electric vehicles. Now some people who came only with electric vehicles and had no service backgrounds failed miserably and are still not able to cope up.
We — our entry into the electric vehicle segment was very cautious. And we were — it was a wait and watch, understanding the entire thing, understanding the challenge of a new engineering product, understanding how the automobile companies are going to support us in future in terms of service requirements and things like that. So over the last one, 1.5 years, we have got a fairly good understanding of what the challenges and what the opportunities of the EVs are going to be like. Now if you see some of you may ask that our — we have not deployed the funds that we’ve generated have not been deployed to the full extent. This is exactly the reason because we were on a wait-and-watch mode.
Now we have a complete road map ready for the next 16 months. That is the next six months and the financial year ’25-’26. On a very conservative note, I can confidently say that if we maintain our DNA of conservatism and bring in a little more dynamism, we are confident of overachieving what we had projected and what we look at delivering by ’26. To put it simply, we have a 16-month road map effective from December onwards, four months of financial year ’24-’25 and 12 months of ’25-’26.
In the meanwhile, with the aggressive road map that we have, we have — we are lucky enough to be able to attract talent into the organization. They have started working towards the goal. The road maps are ready, the processes are ready, the target clients are ready. And very soon, my top team is going to start traveling across India to meet up and communicate with the clients about our readiness. So this is where we are.
And this — are there any questions? Do you want to ask any questions?
Questions and Answers:
Operator
[Operator Instructions] Yes, Mr. Agastya, you can go ahead and ask the question.
Nitin Shanbhag
Good afternoon, Mr. Agastya.
Unidentified Participant
Am I audible?
Nitin Shanbhag
Yes, you are.
Unidentified Participant
Sir, we meet again. So congratulations, sir, on fairly decent set of numbers. I won’t call them extraordinarily good because I saw there were some — at least from my understanding, there was some sort of a mild disappointment on the EBITDA side. I don’t want to lose sight of the bigger and larger picture and of the long term. But quarterly numbers, I mean, if there is a trend in change, we get to know — change in trend, we get to know from the quarterly numbers. So I was just wondering, sir, if you would like to call out anything during the quarter, which may have led to some pressure on EBITDA margins? And also, your opening commentary was very, very nice. It answered a lot of other questions. So yes, best of luck, sir, but that was my only question.
Nitin Shanbhag
So Agastya, I would — I have my finance team answer that, right? I understand your concern is the EBITDA area.
Unidentified Participant
Sir, I have absolutely no concern, sir. This is just a question. I won’t call it a concern.
Nitin Shanbhag
Okay.
Unidentified Participant
I was just wondering, sir, if there were any like cost thing — any headwinds with respect to cost or any headwinds otherwise during the quarter because a lot of the industries domestically are reporting disappointing numbers and they’re calling out a slowdown. So I was just wondering if you saw any sign of a temporary or a temporary slowdown because it looks from your opening commentary that there is absolutely no problem long term. But did you see anything extraordinary this quarter, which you were not expecting?
Nitin Shanbhag
No, this quarter, see, the kind of business that I’m in, I take it for granted that Agastya, sir, you know our business, right? We are into the people mobility business. And if you see, there is a cyclical thing.
Unidentified Participant
Yes, sir.
Nitin Shanbhag
Right? So let me explain for you and for others is this that, see, I’m into the people mobility business for B2B, which means employee transportation, right? So if you break up the entire financial year into two, like six monthly, typically, in the Indian scenario, the holiday travel starts from April onwards and continues till about June, July, right, which means a lower attendance in the offices. A lower attendance in the offices translates into lower business for me.
Unidentified Participant
Understood.
Nitin Shanbhag
Okay. As the holiday season gets over, another challenge comes in, which year-on-year is getting more and more complicated, that is the unpredictable rainy season throughout the three-, four-month period.
Unidentified Participant
Understood, sir. Understood. Makes sense.
Nitin Shanbhag
How it impacts is that on a given — for example, now, let’s talk about today. Today, on an average, pan-India, every vehicle of mine would do because conditions are normal, things are in place. There is nothing unprecedented happening anywhere. So today, my vehicles would do — an average vehicle would do five to six trips in a 12- to 14-hour model — in 12 to 14 hours of business hours. The same thing in the rainy season can be three, can be four, can be two or can be none.
Unidentified Participant
Understood.
Nitin Shanbhag
Okay? At the end of the day, it all translates into what my revenues are going to be. Now the very fact that we have still maintained that entire six months, we have still maintained, this shows our capability of anticipating. I keep telling my team, [Foreign Speech]. We as an organization have — you can say I have created a shield. But yes, as you rightly said, the six — per vehicle six trip versus a per vehicle average of three, 3.5 — 3.5 or four trips [Foreign Speech] average gap.
Unidentified Participant
I understand. So that will lead to some sort of a pressure — artificial pressure on margins and revenue.
Nitin Shanbhag
Correct. And what I do at that point of time, just to address that, if I increase my debt [Foreign Speech] for offices that I need 100 vehicles, if I push 110 vehicles, I will have that pressure in the next six months.
Unidentified Participant
I get your position perfectly, sir. My second question was actually related to seasonality itself. So you kind of answered it just now. But if I look at then the H2, so H2 in terms of pure seasonality, should we expect like a similar ratio to last time because this is the first time I’m seeing the half yearly numbers.
Nitin Shanbhag
It will be…
Unidentified Participant
If I look at the — I understand Y-o-Y, it will be much better. But if I look at the contribution of H2 of last year in last year’s full financial year and the contribution that H2 will have for this year’s full numbers, will the ratio be same?
Nitin Shanbhag
No, the ratios will improve. The reason is that, see, yes, last year, technically, if you see ’23-’24, okay, everybody was getting back on its tracks. We moved from, say, 20% work from office to 50% work from office. Somewhere now it has stabilized to 65%, 70%, and our clients are talking about 100% work from office, right, which has already started translating. But we are not waiting for that. We are adding — like we’re adding electric vehicle was something which contributes higher topline as well as better margins because clients understand that it’s an expensive piece, it’s not a low-hanging fruit. It requires multiple things, investments and things like that. That’s being compensated with higher rates. The per car realization of an EV across the board, right, from the per vehicle unit economics to the entire thing that is associated with the unit economics, right, up to the PAT level is much, much higher.
Unidentified Participant
Understood.
Nitin Shanbhag
Yeah. Agastya, see, my approach towards has been that pre-IPO, I had three concerns. I mean I operated this business for three components of this business. One was my client, second was my employee and third was us. Now in the us category that is from a private limited to a limited company, you are my family. My investors are my family. And I use the same DNA, the same thought process that what I did for us, I will do it for everybody to the best of my ability.
Unidentified Participant
Sir, we have full faith in you, sir. Thank you very much for answering the question, sir, and all the best, sir. I would once again request, sir, if possible, if we can move to quarterly reporting voluntarily, I would really appreciate it. Everyone would appreciate it, sir. Six months is way too long a time, sir. I’m requesting. Each and every SME company that I interact with that please, sir, do it voluntarily. It is very, very important. It will be very much appreciated by everyone in the market.
Nitin Shanbhag
Agastya, I look at it a little differently. Why? One is, I look at it as my responsibility. I look at it as your right. And third, trust me, I look at it as checks and balances. See, when I have people, my investors like you who are going to ask me every month, it helps me to be on my toes every month. Our target and my team’s target is to be communicating with our clients on a monthly basis. Why six months? Why quarter? Why not monthly, right?
Unidentified Participant
I really appreciate it, sir. Thank you very much, sir.
Nitin Shanbhag
The reason is that I am a running concern. I run 365 days, 30 days a month, right? So if I’m performing well or not performing well, why should I keep it under the carpet? If it is not, I’ll come back and say, sir, this was my headwinds. This is it. Please bear with me. This is the corrective steps that we are taking. You may come back and say, why don’t you, maybe not on a public forum, we could come back offline and say, let’s look at this. Let’s look at this. I’m saying my commitment going forward is a monthly communication to my entire stakeholders.
Unidentified Participant
Thank you very much, sir. I really appreciate it, sir. Thank you, sir. All the best. Thank you.
Nitin Shanbhag
Thank you.
Unidentified Participant
Congratulations. Now I can confidently say congratulations on good set of numbers. Thank you, sir.
Nitin Shanbhag
Thank you.
Operator
Thank you, Agastya. Mr. Yash, you can go ahead and ask the questions.
Unidentified Participant
Hello. Am I audible?
Nitin Shanbhag
Yeah. You’re audible, Yash.
Unidentified Participant
Thank you for giving me opportunity. So I have few questions. Like we have short-term loans and advances of INR10 crores to INR11 crores. Can we know that what is the exactly, to whom we have given that loans and advances?
Nitin Shanbhag
Okay. Yash, those loans and advances are a part and parcel of our business. These are loans and advances. See, when we operate, we are in an asset-light model, okay? We support our vendor partners, that is our driver partners with fuel, which is recovered at the end of the billing cycle. So that INR10 crores to INR11 crores is a constant working capital requirement.
Unidentified Participant
Okay, sir. And we also have like INR52 crores of cash. What are we planning to do with it? Do you have plans regarding that? How we will utilize that?
Nitin Shanbhag
On a lighter note, we are planning to launch Kaun Banega Crorepati. No, honestly, Yash, we have — thing is like as Agastya sir asked me earlier and you are asking me, yes, we understand the INR52 crores[Phonetic]. See with this kind of a cash, we don’t have to look back with working capital requirement or capex generation every now and then. If you see we accumulated this in a short span of from our IPO to the next fundraise that will happen. Because when in a service industry, once you communicate with your clients, you cannot…
Unidentified Speaker
[Technical Issues]
Nitin Shanbhag
Okay. Since we had — since post IPO, our clients, our investors expected robust growth from us on a year-on-year or a half yearly mode, we wanted to be absolutely sure because honestly, when you run a company in a private limited and for 22 years you understand the challenges of capital, raising the capital through normal means or through bank funding and things like that. And there are times, in my 22 years, I’ve had times when I have to go back to the client, we have picked up big orders, big service-level contracts, the client has not budged, they have said that our payment terms remains the same. But because of working capital crunch, we had to go back and slash the business. Earlier, we could afford to do that. But right now, I’m a limited company, and we have to think long term. And the clients have put that kind of trust in us. So our thing was, right now, let’s accumulate it. And then we don’t have to keep going back every now and then.
Yes. So this is completely — see, 30% — 30%, 35% will be utilized to grow our existing fuel-based cars and about 65% will be used to develop the EV ecosystem, which will be cars, buses, charging stations and the other paraphernalia. So you will see the disbursement happening, and I had committed to the — to my investors, on a month-on-month basis, we will give you an update as to what our progress is.
Unidentified Participant
Yes, very much informative. My next question is what is our current fleet size and how much it will be at the end of the year — financial year?
Nitin Shanbhag
Current fleet size is — yeah, it’s about 2,100. See, there are two ways to map this. We follow the methodology of — there is — in our industry, there is a process called inducted vehicles and on-ground vehicles. Inducted vehicles is the pool of vehicles. That pool, if you see would be around 3,300 or 3,400. But we calculate it on the basis — because that is what matters. We calculate it on the basis of what every vehicle every day generates. So on that basis, my pool is on any given day, pan-India, we have 2,100 to 2,200 vehicles operating, which generate business for us, which serves the clients. So that is the benchmark. If you take that benchmark, it is 2,100 vehicles. And we are just talking cumulatively, we’ll be about 2,800 to 3,000 vehicles. In the first half, we will be about 2,400 or 2,500. And by ’25, we’ll be much larger. You can add about 30% to that.
Unidentified Participant
Okay. Thank you, sir. Thank you.
Operator
Yes, Mr. Rahul, please go ahead and ask the question.
Unidentified Participant
Sir, good afternoon.
Nitin Shanbhag
Hi. Good afternoon, Rahul.
Unidentified Participant
Hope all is well, and thank you for doing this. Firstly, congratulations on your numbers, amazing show. But I had a few questions related to this. So sir, the business is doing terrific and we’re generating a lot of cash. Have you guys come up with a dividend policy?
Nitin Shanbhag
It is at the discussion level.
Unidentified Participant
Okay. And sir, just to relate to this a little further, this was a few months back, if you remember, a marquee investor had participated and where we raised money. What I fail to understand, so why did we raise money because our business is generating sufficient cash. At the same time, what’s happened as an existing shareholder, I am concerned that we have diluted in the sense, did we even require money when we’re sitting with cash already post the IPO?
Nitin Shanbhag
Rahul, I am with you on that on a 50% basis. Rahul, you have to understand where we all come from. We all come from operating a service-level industry where the need of working capital is constant and large as you grow versus a funding arrangement from traditional banks, which did not understand our business. So honestly, what has happened in the last 22 years is a deep relationship with the clients. My client doesn’t hesitate to give me a higher percentage of his business with the confidence that I’m able to deliver. If you — since you are a part of this conversation, Mr. Chandaraker[Phonetic] asked me a question, and I told him, right, or I think Agastya, in that flow of conversation that I said, inherently, we have this fear of getting — of going big and being left high and dry without funds. So that part of it — to address that part of it, we made these arrangements.
Unidentified Participant
Right. But just having seen post the fund raise, obviously, our performance, where you guys have done an amazing job of the results, which are already showing and market is seeing that. What I’m getting at is, have you also considered either giving sort of either the money back to shareholders or deploying it in the form of an acquisition?
Nitin Shanbhag
Acquisition is a part of our strategy. We have already identified some decent size of companies, but then the negotiations are on. But I’m not banking on them because we would be doing an acquisition only if the price is right, one, and not only price, right, the partner whom we will work with in the future should be having a similar long-term view that we have.
Unidentified Participant
Right. But just one last suggestion since even you and the promoters are also shareholders to work on the dividend policy where even all of us can sort of benefit from not just the business performance, but also something to be taken into account where probably 10% of the cash can be considered as a dividend. It’s just a suggestion.
Nitin Shanbhag
I’ll factor that in, and I think we’ll get back to you on that.
Unidentified Participant
Thank you so much.
Nitin Shanbhag
Sure. Thank you.
Operator
Thank you, Rahul. Sir, we will take the questions from Q&A session. Ms. Tara Kaur is asking what were the primary drivers behind the 23.08% increase in the revenue for H1 financial year ’25 compared to H1 financial year ’24?
Nitin Shanbhag
Sorry, come again?
Operator
What were the primary drivers behind the 23.08% increase in revenue for H1 financial year ’25 compared to H1 financial year ’24?
Nitin Shanbhag
Yes. See, the thing was our hard work, one, and second was the clarity of the road map we had already prepared. With a successful IPO happening, we knew that we were going to be — cash is — working capital or capital is not going to be a challenge. So we went on to acquire more business, one. But as I said, we couldn’t execute it to the level that we expected because of the seasonal nature of the business, which will get reflected in the second half. So this growth trajectory, if you see that it’s a growth trajectory, yes, it is a muted growth trajectory, but it will be leaps and bounds in the sense like much better than what it was earlier. Growth drivers with this, complete clarity, we know we are no longer in a tunnel vision. We are on the highway now. That’s the — that is reflected here.
Operator
Okay, sir. Yes, Mr. Sidharth, you can go ahead and ask the question.
Unidentified Participant
Am I audible?
Nitin Shanbhag
Yeah, you are audible, Sidharth sir.
Unidentified Participant
Yeah. Good afternoon, Nitin sir. How are you?
Nitin Shanbhag
I’m good, sir. I’m good Sidharth sir.
Unidentified Participant
So sir, you were mentioning a 16th month road map from December onwards. If you’re comfortable, can we get a peek inside like what the road map exactly is? And what are we planning?
Nitin Shanbhag
See, the planning, as I said, we are on the highway right now. I’m on a public platform, though we are a public limited company, and I’m sharing with my investors, and I’m factoring in that you are all my well wishers and my thing. As I said, let me put it across to you this way, Sidharth. Today, I have the necessary resources to be not to be conservative in approach. But at the same time, my 22 years of profit-making DNA will only speed up. Let me give you an example. Earlier, I was probably driving at the speed of 45. I have an option of driving at the speed of 110 and accidents — the chances of accidents are much, much higher at that level. I would rather go at 65, 70. I hope I’m coming through with that, right? And I’m creating a team — I’m creating those shields that we can move from 45 to 75, which will get reflected.
Unidentified Participant
Okay. I understand. Okay. And sir, we were planning on some geographical expansion as well. So…
Nitin Shanbhag
We have. In fact, right now, after this — I mean, my travel is starting from tomorrow, and I’m going to be traveling across with my team, and we’re going to have a focused approach. We had not looked at Tier 2 and Tier 3 cities as of now because you can’t consider Bangalore and Hyderabad as — they are no longer Tier 2. They are — you can call them main cities. But our clients are getting into — Jaipur was also — I mean, if you compare to NCR and all, Jaipur has also become almost like a mainline city today, Tier 1 city. But our clients are going, in Maharashtra geography, they’re going to Nagpur, they’re going to Nashik, they’re going to Aurangabad. In MP, they are going to Indore. In Gujarat, they are going to Ahmedabad, they are going to Baroda. In Calcutta, they are seriously looking at — I mean, the West Bengal, they are seriously looking at getting into Siliguri. Bhubaneswar is coming up in a big way.
Unidentified Participant
Understood.
Nitin Shanbhag
These are the geographies that we are setting up base, we’re exploring and talking to our clients about the potential of this because our clients know what their road map is.
Unidentified Participant
Okay. So sir, like if we expand our geographical location, so do we already have inducted a few drivers there? Or will we have to start inducting drivers there? Or do we normally start with buying our own vehicles?
Nitin Shanbhag
Sidharth, what happens is that, see, we have not started inducting the drivers because for us, that is the easiest part of the whole game.
Unidentified Participant
Okay.
Nitin Shanbhag
That’s the easiest part of the whole game. Luckily for us, the outsourcing ecosystem has been developed across India. And for example, from — if I have to start Bhubaneswar, my team says sir within seven days [Foreign Speech]. They have done their homework, because there are not many opportunities, today, you have people in Calcutta who are actually from Bhubaneswar and would like to go back to Bhubaneswar. Like in Pune, you have quite a few people who would want to go back to Nashik. But if we give them an opportunity in Nashik, they will go to Nashik.
Unidentified Participant
And sir, I believe you were contemplating on whether to join hands with Ola and Uber for utilization of vehicles.
Nitin Shanbhag
Not at the moment.
Unidentified Participant
Not at the moment?
Nitin Shanbhag
I want to create my own fleet of 10,000 vehicles and then I would like to sit on the table with a sizable strength. I have the ability in the B2B space to go at least 6,000, 6,500 in the next two years. I don’t think so we should look at — that’s not a part of our strategy at the moment, Sidharth.
Unidentified Participant
Okay. Thank you, sir. Really appreciate it, and best of luck.
Nitin Shanbhag
Thank you.
Operator
Yes, Mr. Keshav, you can go ahead and ask your question.
Nitin Shanbhag
Good afternoon, Keshav sir.
Unidentified Participant
Hi, sir. Happy afternoon, sir. So happy to see you here. Sir, I had a question for you that we are right now having how many vehicles, I think we’re having 4,000 vehicles on our books?
Nitin Shanbhag
Yes. No, 4,000 vehicles in the inducted. See, we don’t have any vacation, sir, we don’t have vehicles on our books.
Unidentified Participant
No, no. Obviously, I’m saying we have an asset-light model, but we have inducted 4,000 driver vehicles. That is what I wanted to ask.
Nitin Shanbhag
Correct. Yes, I was saying, there are two ways to look at it, right? There is a point with me talking about anywhere between 3,500 to 3,600. But our industry has absenteeism, vehicles breakdown and things like that. We prefer — what we prefer to calculate, what we calculate with, at OSFM, how much revenue each vehicle is generating.
Unidentified Participant
Correct. Got it.
Nitin Shanbhag
Right, that makes more sense. What is the point in me going ahead and telling the world [Foreign Speech]. My entire team’s focus is to get that guy on ground to do business.
Unidentified Participant
Got it, sir.
Nitin Shanbhag
Right? So that is our approach, yes, from that perspective, like — yes, Keshav sir.
Unidentified Participant
Yes. So what I’m saying is, sir, our competitor, which has just got listed, the name of the company is ECOS Mobility, the market cap as on date is INR2,130 crores and they have a fleet of around 12,000 vehicles, means an asset-light model at the same time. And we broadly [Foreign Speech] have a fleet of around 3,500 to 3,600 vehicles and our market cap is only INR244 crores. So we are quoting at broadly 12% or 13% of the market cap of ECOS Mobility. And we are broadly one-third the vehicle size of ECOS Mobility with a lot of inorganic growth planned for the future. So I just feel that we are extremely undervalued. What is your comment on this, sir?
Nitin Shanbhag
Sir, I fully agree. See, I was the first one Keshav sir. I was the first one who jumped into the IPO market. So the first — so the guy who comes to bat first and if the bowler is — I mean, in my time, we used to have Andy Roberts and without a helmet. So we came to the market without a helmet. So investors like you have valued us. Now you have to value us.
Unidentified Participant
No, no, I just feel that we are quoting at 12% of the market cap of ECOS Mobility and this is just very, very unfair looking at what we have and what is the growth going forward. Look at the growth of ECOS is not giving us growth. The numbers are not good at all, and our numbers are at least a 50% jump and with a lot more going forward. So I think we are just very, very undervalued looking at the growth potential of the industry and of our company specifically.
Nitin Shanbhag
So Keshav [Foreign Speech] in the class. You people have to give me the marks no?
Unidentified Participant
Yes, yes, I got it, sir. I got it, sir. I was just wondering what’s happening over here. I understand, sir. Thank you so much, sir.
Nitin Shanbhag
Thank you, Keshav sir.
Operator
Thank you. We have next question from Babu George. Please explain growth drivers for revenues and net profits for H1 financial year ’25. Are they sustainable going forward?
Nitin Shanbhag
Ma’am, they are not only sustainable, they are going to be substantial growth in all the parameters of the financials. As I said, we have put our business on a fast growth mode. Yes, we will have some headwinds. EVs are going to be the headwinds because that market or that ecosystem is still under development. It is not a full-fledged market, okay? So the thing is like — so we will have those headwinds, but whether there are headwinds or otherwise, we will still have to forge ahead and we’ll have to do it in a slightly bigger way rather than we can’t have a very conservative approach on the EVs. So I would request my shareholders to bear with us because as I said, we were the pioneers, though we are not the pioneers in the EV growth, but if we have to maintain, if that is going to be the future, we cannot be left behind being a marginal player. We have to be a decent-sized player to be able to play in that market.
Operator
Okay. So next question is from Chaitali Dev. Recently, which cities we have our presence and what are our plans for regional expansion?
Nitin Shanbhag
Sorry, I didn’t get you.
Operator
Recently, which cities we have our presence and what are our plans for regional expansion?
Nitin Shanbhag
Our focus is — see, if you see, we are traditionally a Bombay-based company, we were with a presence pan-India. Now with the resources, with the team that we have, our entire focus is across all major cities. If you see, we are already operating out of eight locations, Mumbai, Delhi, Calcutta — Kolkata, Chennai, Pune, Bangalore and Hyderabad. Now our second line of this, there are two lines or two strategies. One is focus on the growth in these geographies, take them to the next level. And at the same time, open — for example, now our focus is in the North. In the North, it is Jaipur. In Maharashtra, it is Nashik. In Gujarat, very soon, we’ll have Ahmedabad coming up. Down Northeast, we will have Siliguri and Bhubaneswar. So these are our future expansion plans. We will have about 17 — we’ll operate — we’ll be operating out of 17 cities, 17 or 18 cities in the next 16 to 18 months.
Operator
Okay. Next question is from Mr. Amit Choudhary. What steps has the Company taken to maintain fleet reliability and minimize downtime?
Nitin Shanbhag
See, our strategy is to have a business partner whose vehicle is less than three years old, maximum up to five years old, okay? Up to three-year-old vehicles, we ensure that they get sufficient business. In terms of kilometers, they would clock in 4,000 kilometers, 4,500 kilometers or more or we also operate on a 24 hours[Phonetic] wherever it is possible, we squeeze the asset to 18 to 24 hours with double drivers and things like that. A less than five-year-old vehicle, we know that there are engineering challenges. So we restrict the operation time of that vehicle to 10 to 12 hours and about 2,500 kilometers to 3,000 kilometers. That helps us. See, today, technology — I mean, the most popular cars in our industry are Maruti Suzuki Swift Dzire, Ertiga and in the higher-end category, it is the Innova Crysta. And all these vehicles over a long period of 15, 20 years have proved their capability. They are almost like maintenance free. I mean you do a regular maintenance of these vehicles, the downtime is absolutely next to negligible. Of course, but maintenance is there. On maintenance levels, we have tied up across, we have our own business network, our own mechanic — I mean, maintenance network who are trustworthy, who are knowledgeable and ensure that our vehicles downtime is the minimum.
Operator
Next question is, what are your competitive advantages that distinguish yourself with your competitors?
Nitin Shanbhag
I can say that my customer, we have been awarded every company that we worked in have labeled us as the most significant value-added partner for their service delivery. That is one. We’ve got multiple awards also from our clients, which we’ll share shortly. Overall, from a competitive perspective, I think we are more focused, see like Keshav sir mentioned about one more company. We are more focused on the B2B delivery and are looking at growing into other territories where our expertise lies.
Operator
Okay. The next question — yes, sir, please continue. Sorry.
Nitin Shanbhag
The very fact that we have not lost any contract in the last 10 years, I think, shows the trust that the clients have put in us, and you rightly said, what is it? See, our pan-India expansion has been on the request of our client. It’s a give and take. When we said that we would like to come and serve you in different geographies, they did not even think twice about inviting us to start operations there because we already had a 10, 12, 14 years track record in Mumbai, serving them, serving in multiple locations. That is exactly the strategy that we are going to use to expand the business in other geographies.
Operator
Okay. Next question is from Mr. Vishal Wade. How many new clients have we added during financial year — sorry, financial year H1 ’25?
Nitin Shanbhag
Our total pipeline was for about nine clients. Our total pipeline was for about nine clients. We have added three as of now. We’ve added three and the rest six are large transitions. Yes. So I think by next week, we should be closing two. So we’ll have five and the rest — that’s where the mix of EV versus this, that’s a slightly tricky thing. But I think by the end of this year, we should be able to close nine new clients other than the 26 that we have.
Operator
Okay. Sir, we will take one last question from Mr. Sidharth.
Unidentified Participant
Good afternoon.
Nitin Shanbhag
Hi. Good afternoon, Sidharth.
Unidentified Participant
I’m good, sir. How are you?
Nitin Shanbhag
I’m good, sir.
Unidentified Participant
I apologize if my question is a bit repetitive as I joined the call a little later. I just wanted to know, earlier, we were targeting for a growth of about 35%, 40% organically. And on top of that, we had sufficient cash balance, and we were thinking of an acquisition, which would have brought in another 20%. So can we say are we still on track on the organic growth because the numbers seem slightly muted on that front.
Nitin Shanbhag
The numbers, as I said, Sidharth, sir, definitely because of the seasonal nature of the business, right? See, my 21 years as a company, 15% to 17% has been a normal momentum, right? And if you see, the addition of 13% to 14% to make it an aggregate 13% will definitely be reflected in my next half. As far as the inorganic growth is concerned, you know how it goes. When you go out as a buyer, things become suddenly very expensive. And when you try and go as a seller, things become suddenly very cheap. Yes. So Sidharth, the best and the worst form of about a public — of an open forum is everybody knows how much money we have. So everybody wants to have a bigger piece of that [Foreign Speech].
Unidentified Participant
So organically, is it safe to assume that the second half compared to last year, we’ll be at a roughly 30%, 35% growth trajectory?
Nitin Shanbhag
Yes.
Unidentified Participant
If we compare H2 to H2?
Nitin Shanbhag
Absolutely.
Unidentified Participant
Okay. And one last question. In terms of our fleet, what is mentioned in the PPT, we have a same fleet size as compared to the ending of last year, FY ’24. So when you mentioned that the average money that one car makes, is that higher now compared to last year? And given fleet additions, what is our status on that given?
Nitin Shanbhag
As I said, Sidharth, sir, my fleet car, see there is an attrition. There is an attrition either from my driver partner or there is an attrition from our side post attrition because of service level issues, right? I’m in a service business. My client wants me to serve them 30 days a month, 26 days a month. There are some driver partners who do not follow that. They are more — they come only for 12, 15, 20 days. So we give them a leeway of one or two months and then when it becomes a little too much, we ask them to go.
So technically, if you see our thing is our topline will always reflect what every vehicle because we don’t give the attrition numbers nor do we give the addition numbers. We will start doing that. That’s a good suggestion, Sidharth. I think I should be able to be able to do that. Yes, that this quarter, we not only did this business, we added this many business partners. That is one good way. Thank you. We’ll do that.
Unidentified Participant
Because we’ll get a better picture as to how many drivers are staying, first of all. And second of all, because we are onboarding vendors as such. So it should be easier for us to onboard higher vendors if we see growth in the…
Nitin Shanbhag
Not only that, Sidharth, see, we had a little humanitarian angle also. Post COVID — I mean, during COVID, this was — the business partners were affected the most.
Unidentified Participant
True.
Nitin Shanbhag
So for a period of one year, we decided that who has managed to survive and hold on and has been with us through this difficult time, let’s give them more business rather than adding more cars. The guy who was making INR55,000, INR60,000 a month, let’s give an opportunity to make INR70,000, INR75,000 rather than adding a few more cars. Now that thing is done. They have reached their peak. Now for us — now we need to add and we will add.
Unidentified Participant
Yes. Understood. So we’ve sweat out as much as we could from our existing driver base. So new vendors should be onboarded and additional cars you will have on your 10%[Phonetic] of the fleet.
Nitin Shanbhag
Absolutely, yes.
Unidentified Participant
Understood, sir. Thank you so much. That’ll be all from my side.
Nitin Shanbhag
Yeah. Thank you, Sidharth.
Unidentified Participant
Thank you.
Operator
And I think we have covered majority of questions. Thank you, everyone, for your time, and thank you, Nitin, sir. Thank you, team. If you have any queries, you can…
Nitin Shanbhag
If anybody has, ma’am, you can organize that, a recorded thing or if you want to have some direct interactions with us, you can share our e-mail IDs and phone numbers and things like that.
Operator
Yes, sir. Sure, I will do it.
Nitin Shanbhag
I have my entire top team here. I have my CFO, I have my finance team, my operations team along. So we’ll be more than happy to share. Yes.
Operator
Yes, sir. Sure. Okay. Thank you so much. Thank you for your time.
Nitin Shanbhag
Thank you, everybody, for joining.