Suyog Telematics Ltd (NSE: SUYOG) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Shivshankar Lature — Managing Director
Ajay Sharma — Chief Financial Officer
Unidentified Speaker
Tushar Shah — Business Head India
Suyash Lature — Business Development Manager
Analysts:
Unidentified Participant
Mike Talati. — Analyst
Darshil Pandya — Analyst
Rishi Kothari — Analyst
Saket Kapoor — Analyst
Tushar Talwar — Analyst
Presentation:
Operator
Ladies and gentlemen, I welcome you all to the Q4 and FY25 post earnings conference call of SI Oak Telematics Limited today on the call from the management team we have with us Mr. Shiv Shankar, Lature Managing Director. Mr. Tushar Shah, Business Head India Mr. Ajay Sharma, Chief Financial Officer Mr. Suyash Lature, Business Development Manager and Ms. Aarti, Compliance Head. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to quickly run us through the business highlights and performance highlights for the quarter ended 31 March 2025. The growth plan and vision for the coming year post which we will open the floor for Q and A over to the management team.
Shivshankar Lature — Managing Director
Thank you Vinay. Thank you everyone for joining our quarterly call. So before I start my presentation I would like to thank each one of you because of your support and employee hardware. Once again we have declared a very encouraging result. We are able to improve on our cash flow. We have rolled out close to 1800 tenancy the entire financial year. We have again improved on our PACT and EBITDA margins. So it has been one of the very encouraging result against all the odds. So I know there are a lot of questions among the investors. So we are keeping a presentation limited to a critical sites which I’ll explain you in detail post which will open it for Q A. Kamlish can you scroll down? So in FY25 if you see our Q4 percentage of revenue share there is a drastic improvement in BSNL numbers which has gone to more than 2% of my overall revenue in Q4 where there’s also. So we are now if you consider the entire year we are my actual is almost 49 followed by Jio in 23% and VI on 27% again which will see a drastic change in coming quarters for VI and BSN because we are rolling out max of this site for VLN BSN as you know informed whether we have presence across India. Now we have we are able to successfully roll out 7,000 reach 7,010 see OB it is not not as per the expectation but we are be able to achieve 7000 side against all financial odds. But we have lot of. We have lot of business incoming quarter surely make up for it coup next slide. So to be a specific on numbers. Hello. So you know one of the critical hierarchies to be specific on numbers we have now 5,704 total towers and 7,002 total tenancies. We have also crossed thousand landmark in my government portfolio which is one of my biggest USP and we have crossed 5,300 kilometers of fiber networks. So one of the biggest highlight of the year was the acquisition of Lotus which we completed on the 31st of March. So as you all know we are very strong here in Mumbai which is a financial capital of India. Now we also very stronghold in Delhi which is a national capital of India. So any company who are very strong in Delhi Mumbai will always a part of top notch of the industry. And in SU Yoga we were having the same thinking that with Mumbai we should have a very strong presence in Delhi. And we have got lot of advantage of Lotus acquisition. If you see we have got 15 to 16 crores of revenue will be added to a consolidated revenue and we have got almost 120 sites, followed by 140 tenancies. In Lotus and we are very sure that we’ll add another 50% of tenancy in coming quarter on a Lotus portfolio which will make one of the most critical pair of Delhi circle. So with this acquisition Su Yog now have have become a very strong player in national and financial capital both of India. And it fits our strategic planning where we wanted a presence in a circle where we were weak. Now I have always been saying throughout the year the government is supporting telecom industry like never before. So one of the most important decision which government has recently taken is the ROW guideline which has been released centrally which is now mandate for all the state to adopt that policy. With the the major benefit of these new ROW policies I can It’s a single window clearance for all my tower permissions from any corporation or any Panchayats or any central state body. I just need to apply on Gati Shakti portal there when 30 days deemed approval process where I need to upload my documents and all my sites become legal from BMC or any regulatory approvals. So I don’t need to go on a different corporations or different. It’s a single window clearance where within 30 days all my sites are. That is there is no standard row charges across India. While there were a lot of disparity in different states there all different states were having a different charges. Now all states need to follow the central guideline and there is a common rational charge across India. Third biggest benefit. No corporation can take any legal action of any of our tower without giving any proper notice. And if I have Gatishakti approval on my all my towers. So government has been supportive and we are sure going forward next one or two years we will see many such rules which will benefit IP companies specifically next slide. So as in in terms of our future plan we are still very sure of achieving 10,000. We are sure of achieving 10,000 next to financial year one nine. Hello. We are very sure we will be achieving this. We are planning to add another 5,000 tower in FY to a current financial year and we’ll add same 5,000 number in the next financial year. We have got enough business from Vodafone, Airtel, JIO and BSL to achieve our target. And now we are on a course of arranging funds and we are sure this financial will be going to achieve these targets. Again I said we are still focused on FTTH and Fiber vertical and we are in Nashville. Two or three years would be rolling out huge number of FTTH and fiber across India. Recently we have bidded for one of the MTN fiber tender in Mumbai where we have been awarded L1 and we are very close of awarding that tender to us which will give another 500,000 extra benefit in Mumbai and we are working on many such standards of FTTH and fiber which will complement our addition which will add to our revenue KT in coming years. So one of the biggest BSN update like I’ve been entire I’m saying that BSN has become one of the key important customer for us. Recently there was a letter released by BSN central office to all these circle offices stating please transfer all these sites of non performing IP company to suyo. So we are expecting now you jumping BSN business with this so any non so if you see overall BSN is now dependent majorly on two player one is the India second most tower company and second is Suyoke for their rollout. So and the top largest company has defaulted on the performance followed by all other IP companies. So we are expecting all that air source to get converted to SUYOG in next say weeks or 15 days time and we are expecting huge jump from BSNL across India in our revenue and in our business and that’s officially declared by central team that SUYOG is one of the most best performing company for BSN and we want to give SU has become our preferred partner for BSN where they want to give more and more business to SUUK compared to any other ip. So we’ll move on financial statement so I believe you must have seen financials declared by now. So here what we are showing is a financial statement excluding ESOP impact which is one time exceptional impact so that there is an Apple to apple comparison and there is no confusion in terms of our result. So if you see my EBITDA margin has improved now my ebitda margin for Q4 is almost 71.4% compared to 62% year on year. So there’s an 853 basic points improvement. Even if you compare to financial IT has improved by 104 basic points on an overall yearly basis we have reached and even if you see my EBITDA margin has gone to 46.5% which was compared to 41.5 again pet margin and we have sustained the PET margin and it has improved by 275 basic 184 year basic point. My reported net profit may be negative. That’s because of an ESWAP impact, which I’ll explain you in the next slide. But if you remove that ESOP impact my net profit. We are able to maintain net profit of 32%. And EBITDA has further improved publish NASLAG. So these are the. Important notes which have highlighted on our financial. So if you see we have we have taken a hit of E which is a no loss for Q4. This E were already approved by shareholders in the shareholder meeting which we have taken impact on. So there is an 27 crore ESOP impact on my financials which is mainly a difference of exercise rate versus the fair value rate. And this entire valuation was done by a register valuer. And based on that we have taken an impact of 27 crore. And this is as per the accounting policy we need to take this hit. Even though it’s a nostalgia, it needs to be part of the financial and hence you are saying seeing a loss in current quarter. Actually if you remove this 27 crore we have reached 50 crores revenue in current quarter. And there’s a we have maintained same every 10 PET margin second point if you see the EBITDA again EBITDA margin excluding ESOP we have improved drastically. So it stands at 71.4% which is 853 basic point increase from year on year. So our results are actually encouraging and it’s much better than even previous year. The net profit at 35.3% what we have been committing year on year that will maintain net profit between 32 to 35%. We are continuing same in current year and current quarter also and EBITDA is also 70% plus. A biggest gain in this current year is my cash flow. We have managed our cash flow excellently well against all the odds we have. Even though we have deployed 1800 plus size majorly for Vodafone and BSNL who are making payment for 90 days still we are able to improve on actual cash flow. We have generated a positive cash flow of 211 million compared to 14.8 million in previous financial year. So this is one of the biggest upside on our financial which we can further utilize to improve our rollout in next financial year. So now in a financial also man see this revenue recognition happens on quarter on quarter basis for this entire financial year FY25 we have done a revenue recognition of 24 crore. So when we say it’s revenue recognition we have fulfilled all our contractual obligations with private operator and government operator both they have accepted and they have given me a sign off. But due to certain technical reason we are not able to build it. So contractual obligation has been done. We have received commitment from operators that they are going to pay me this only thing my billing is pending which will happen in coming quarters. And if you see the breakup my around 4 crores of revenue billing is pending with Atel Fiber team for certain PO related issues. My maximum around 19 crores of revenue is pending from BSNL. We have started rollout for BSNL in month of October. Now as a process BSNL allow they give me acceptance of the site. But they allow me to bid only when their site is on end. Happen and obviously there was. You all know that there was a certain delay from Tejas due to their backhaul issue which has been now resolved. And as and when BSN is integrating that set, we are billing them. And obviously some 7.9 million is pending between act as you which is a normal regular new site billing which happens after one or two months. So all these are contractual obligations are over. We have received confirmations only thing billing is pending for this 24 crores which will happen in subsequent quarters. So that’s for. In terms of presentation I have been trying to you know clear all the questions which you have now. Can we open floor for Q A?
Questions and Answers:
Operator
Sure sir. All those who wish to ask a question may use the option of raise hand and we’ll invite you to ask the question. We’ll take the first question from Varun Gia. Varun, you can go ahead please.
Unidentified Participant
Hi sir, couple of questions from my side. So this 24 crores which you mentioned. So these are pertaining to the tenancies added in Q3 or these are prior to that. And despite such good addition of tenancies and towers it doesn’t reflect in the overall revenue growth which should have been in Q4.
Shivshankar Lature
So try to do so. First thing that this 24 crore is spreading across the year. But as majority of that 24 crore which is with 1 of the government player which is 19 crore are mainly to a roll out related to Q3 rollout. So no you’re not. So if you see actually I’ve done in revenue 50 crores in Q4. If you see my raven of 50 crore. A Q4 is 50 crores and over. Even though we have 24 crore revenue recognition because billing has not happened. But we have considered it in the revenue and expense also booked for this. All these sites expense is already booked. Only billing is pending.
Unidentified Participant
But that much it should have been quite more. Because you added almost 1200 tenancies in Q3 and 600 this quarter.
Ajay Sharma
We are previously working with the three operator like Airtel, Vodafone and Jio. These are private operators. Okay. Due to the market scenario the this is Indonesia’s product done by Tejas. Their stability of product is very much important for BSNL Aspect and fiber connectivity is there the issue is not pending from Suyoga done as per his skill and all the site has deployed. Now government has to on air the site. But they have given the SO and everything is in place. First question is which. Quarter is this is three and fourth only. And now we are in a better position to get that optical fiber tender so that government will clear the dudes. Because there is two where the BSNL is present as a MTNL in Mumbai and Delhi. So we acquired the Delhi company Due to this purpose only the government billing is slow. Everybody knows that that is not new. But they have already given the following the procedures and their due diligences and their clearances. We have got it. So Tushar want to say that third quarter and fourth quarter is the only issue that billing will be significantly happened. Okay.
Unidentified Participant
Okay. And this ESOPs which you have issued why should at what price? And have they has there been exercise
Unidentified Speaker
Sharma?
Tushar Shah
Yes.
Unidentified Participant
Yes.
Unidentified Speaker
From the 2019 to 2023 or according [Foreign Speech]
Unidentified Participant
[Foreign Speech]
Unidentified Speaker
527 R.
Unidentified Participant
Okay [Foreign Speech].
Unidentified Speaker
[Foreign Speech]541.67
Unidentified Participant
Okay. Or exercise [Foreign Speech]
Unidentified Speaker
[Foreign Speech] in the coming period.
Unidentified Participant
So cash flow may it’s showing now the money is received
Unidentified Speaker
Cash flow [Foreign Speech]
Unidentified Participant
Okay. And warrants how much the remaining pending will be done in what time?
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Yeah. So that will be received in what period of time?
Unidentified Speaker
I think that will be received in the month of June or July.
Unidentified Participant
Okay. And can you also let me know what is this jump in Current Other Current Assets 33 Cross There is a big jump. So what is that pertaining to?
Unidentified Speaker
[Foreign Speech] Opiokusa utilization with effect from 1st April accounting no man
Unidentified Participant
So total [Foreign Speech] kitra debt increase 37 to decragi increase Y plus this 33 karos
Unidentified Speaker
[Foreign Speech] mera dan show increase Where.
Unidentified Speaker
[Foreign Speech ]
Unidentified Participant
This 33 will be added now
Unidentified Speaker
[Foreign Speech] around 20. What about net effect 15.
Unidentified Participant
Okay, understood. And one last question. Vodafone receivables as percentage of total receivables would be how much? Because there is a good amount of jump in receivables. Around 22 crores.
Unidentified Speaker
This is around 28 to 30%.
Unidentified Participant
And any issues in.
Unidentified Speaker
No, no issue.
Unidentified Participant
And Vodafone recently mentioned that it will be very difficult for them to survive that impact
Unidentified Speaker
[Foreign Speech] create.
Ajay Sharma
So I’ll take this question in terms of. They have been very aggressive in nature. They have rolled out 5G services in Bombay last month and in Karan. They already rolled out 5G services in Delhi. So if you. I’ve been in Vodafone office in and out on almost daily basis. Vodafone has been very aggressive. They will surely give more and more business in coming. And we don’t have any doubt on sustainability of Vorafone. See, they will make statement because they play some games with government. There are some internal discussion happening with government at that level which we don’t comment. But in terms of IP company in terms of sustainability we 100% sure will come much stronger in coming year.
Unidentified Participant
And out of this 10,000 which you have guided 10,000 how much would be potential BSNL.
Ajay Sharma
And see basically we are guiding for 8,000 towers with 10,000 tenancy. In 10,000 tenancy we expecting 5, 6010 from BSL around 4,000 tenancy from under.
Unidentified Participant
Okay, thank you. I’ll come back in the K.
Ajay Sharma
Yeah, thank you.
Operator
We’ll take the next question from Mike Talati. Mike, you can unmute and go ahead please.
Mike Talati.
Yeah. Hi sir, good morning. Thank you for the opportunity. So sir wanted to understand for the provisional revenue part we have recorded 24 crores as a provisional revenue out of the 50cr. So our revenue from operations in Q4 is just 26 years.
Shivshankar Lature
No, no, no. Sorry Mohit. Right. So I said in my presentation also and if you see that slide that 24cr is for the entire year and not for Q4. See this provision will keep happening on quarterly basis. But there was never remark because all one audited. Since this was an audited balance result which we have declared. There’s a remark stating it’s an revenue recognition which happens for every company in every quarter. There would be something where billing would be pending. So this 24 crore. Out of this 24 crores 4 crores are for the fiber which is for entire year around 19 crore is for gob and player where provision has been for six months and not for Q4 alone. And there is another 78 lakhs or something which is for another six months. So more or less these provisions are for two quarters and 4 crore provision is for entire. It’s not for Q4 only.
Mike Talati.
Okay.
Shivshankar Lature
And we have also given cordem of the remark yesterday night by the auditors.
Mike Talati.
Okay. And by when can we expect full impact of the new tower addition of close to 1800 towers which we did because revenue from operations is not. It’s not showing there, it’s not visible there.
Shivshankar Lature
So it will happen from coming quarters. Because when we roll out a tower we don’t route on day one of the quarter. It happens for entire quarter. So full potential of receivables it will be visible in current quarter.
Mike Talati.
Okay. And the 24th CR which is the part of the. Which is the provisional revenue where is. Is it a part of the trade receivables or it’s. Is it a part of the current assets? Because the billing is yet to be done.
Unidentified Speaker
[Foreign Speech]
Mike Talati.
Wonderful. And so the shop portion in cash flow it’s showing as a 35cr receive received from ISOPS received from ES. And if we receive the 20crores which we that was issued to sir, but it’s the warrant amount is just 20 cr. So the remaining 15 crores is from 35
Unidentified Speaker
[Foreign Speech] % balance 20 cr in month of March. I
Mike Talati.
Sorry sir [Foreign Speech]
Unidentified Speaker
25% [Foreign Speech] particular financial year. May compile over.
Mike Talati.
Okay. Summary 25 year which we have recorded as an exceptional item of ESOP. So that will not come in the future quarters or years because we have done that in one end.
Ajay Sharma
[Foreign Speech]
Shivshankar Lature
[Foreign Speech] And Sarmajo Isopusha impact again right
Ajay Sharma
[Foreign Speech] Expenditure.
Mike Talati.
When are you expecting to convert this
Shivshankar Lature
Simple answer is that impact one time.
Mike Talati.
Okay. So sir now we have two ESOPs lined up for exercise, right? One is a 202018 where we have close to 15 lakh shares and the 5 lakh shares which we have recently issued.
Shivshankar Lature
Yes.
Mike Talati.
Okay. And sir last question is regarding the. So last quarter you mentioned we are in talks with two bankers for 100cr loan. So when can we get an update for the same? When can we receive the funds?
Ajay Sharma
[Foreign Speech] We are raising 100k debts from 2 of the bankers or 20cr or 50cr already in Q with with taxis bank.
Shivshankar Lature
So what we are expecting Mohik is then 100cr we have received part out of around 3035 crores we have received in last day of March and the balance we expecting in Q1 so it raise entire 100 crores by end of Q1 will be with us and which will help us to a very strong rollout in Q1 plus Q2.
Unidentified Participant
Last question from my side is practically if we look then the receivables would stand at 87 crores. Right? Because of 63 crores of receivable plus 24 crores of unbilled revenue. So net net we have to take 87 crores on the market, right? Right.
Ajay Sharma
No. But when you say 87 crore. That 87 crore is not part of my top line. Because trade receivable also includes electricity receivables which is not part of my top line. Around 30 crores would be an electricity receivables out of debt which happens on a two month cycle or three month cycle on monthly basis. So in top line it would only be around 50 crores receivable balance 30 crores is electricity receivable. Bulls.
Unidentified Participant
Okay, thank you.
Unidentified Speaker
Thank you.
Mike Talati.
Okay, thank you.
Operator
M. We’ll take the next question from Daril Pandya Dar, you can unmute and go ahead please.
Darshil Pandya
Hi, can you hear me? Sir?
Shivshankar Lature
Yeah.
Darshil Pandya
Yes sir. What was the capex for Q4 that we have spent?
Shivshankar Lature
So in Q4 we have hardly. We have done only 50 odd sites so not spend much. It would be 4,5 crores capex. My major capex happened in Q3.
Ajay Sharma
[Foreign Speech]
Shivshankar Lature
Correct?
Ajay Sharma
[Foreign Speech]
Darshil Pandya
Correct. Sorry CWIP. Fixed assets by September or when do we expect?
Ajay Sharma
Maybe Most of the first quarter or second quarter may [Foreign Speech].
Shivshankar Lature
So in H1 it will come in set. So part in Q1 and part in Q2.
Darshil Pandya
Got it. Got it. And sir [Foreign Speech] whatever you know towers we have you know shown in the presentation. Is. Is the. Is the Lotus tower included in that list?
Unidentified Speaker
No, no, we have not considered that. Because equation happened on the 31st of March. So now in Q1 it will get added.
Darshil Pandya
Okay, got you. And sir, whatever you have explained with regards to the you know loan facility that we’ll be getting up. But then we will be needing some more capital, right. For doing that 5,000 hours. So what will be that amount?
Ajay Sharma
We have planned 500 crore stack apex in coming year. Out of which 100 crore we are able to successfully raise from banks. We have internal aircraft. 150 crores will be internal. 150 will be internal. So we have around 250 crores. We have shortage of 250 crore out of which carrying around 50 crore we should receive from preferential and ESOP. So balance. We are still trying to raise the funds. So as and when we get some positive news we will update you.
Darshil Pandya
Okay, last question would be on you know the kind of guidance that we had shared. Is that outlook still on track?
Ajay Sharma
Yeah, 100 only because of last year since market was not good enough and you’re not able to do a preferential. So it has just got spillover by another say 2/4. Numbers are intake only. It will be spillover for two quarters.
Darshil Pandya
So 3320 crore is still visible. As for your as well.
Ajay Sharma
Yeah, maybe not if FY21 then 6 months later. But it’s 100 there on cars. And it can be more than that. The way we are seeing and positive feedback from BSN and Vladimir. We can cross that also. But there can be st. You know one or two quarters in achieving that numbers. That’s it.
Darshil Pandya
Got it. And sir, one last question with regards to von idea. Sir, I heard you saying about Vodafones. You know how strong. It will it is going to be coming back. But the, the also thing is that you know, what the other participant also talked about, you know, the Vodafone is not. They are saying that it’s hardly. You know, they can hardly go for six months and they will need the government intervention. But then you are saying something else and you know
Ajay Sharma
This is a recorded call, I can’t say much. But then if you see there is also news of AGR waiver which is happening. So if they want an AGR waiver they have to make many such statements. So that’s a part and parcel of company strategy. And we can’t comment on well strategy but we work on ground with Vodafone. On ground. Actually there is a clarity that Orafun will come much stronger. They have started rolling out 5G. Don’t quote me but by August I think in this H1 they’ll be rolling out 5G across India. So they are going to come back very stronger. They are putting lot of money into business. They’re coming up with almost. You have seen the edge of number of sites. We are coming, they are coming up.
So undoubtedly Vodafone will come stronger and the statement which have been made by VI management are part of their strategies and I can commit much on recorded calls. Yeah.
Darshil Pandya
For this fiscal year any one of any other expenses that we are seeing for this fiscal here
Ajay Sharma
Other than capex.
Darshil Pandya
Other than capex for this one time hit that we have taken for esop. Something like that. You know any other expenses that we are seeing as in. You know
Ajay Sharma
[Foreign Speech] that in this entire financial. You are talking.
Darshil Pandya
[Foreign Speech]
Unidentified Speaker
[Foreign Speech]
Darshil Pandya
[Foreign Speech] Okay, got you. I’ll. I’ll fall back in the. Thank you so much.
Operator
Thank you Darshan. We’ll take the next question from Rishi Kothari. Rishi, you can unmute please.
Rishi Kothari
Hi, thank you so much for the opportunity. I had several couple of questions on the P and L front. I mean in terms of expenditure. If I see there’s a drastic increase in cost of material consumed as well as you know for the quarter and employee benefit expense post the adjustment of ESOPs. I mean what exactly is driving this sort of expenses? This margins front more or less it’s been intact because of the other expense went down. Otherwise you would have taken a huge hit in margins on EBITDA front as
Ajay Sharma
Well. Expenditure increase [Foreign Speech], cost of raw material,
Unidentified Speaker
Cost of material,
Ajay Sharma
Cost of material increase [Foreign Speech].
Shivshankar Lature
I think you are seeing a consolidated balance sheet.
Rishi Kothari
I mean your PPT that has mentioned the financial statement on slide number 40 that y percentage I’m looking at for the quarter. Right. So top line I see a 10.4% of YUI growth but at the same time my cost of material consumer has increased by 53.9%. Around 54%. So that? That’s the main question. I mean, I don’t know why exactly. No one has addresses yet. It but this is something it’s to be looked at right now
Shivshankar Lature
Can you open that slide what he’s talking so it will be more clarity will be there.
Unidentified Speaker
Yeah sure. So just give me a second
Shivshankar Lature
[Foreign Speech] what he’s asking Financials are slide.
Rishi Kothari
Yes. Financial statements slide number 40 just before the supporting Note that we have published standard numbers. If I’m not wrong, these are purely standard based on your statement.
Shivshankar Lature
So which line item you’re talking over here? Cost of metal consumer.
Rishi Kothari
Yes. And that third line, it is on the quarter basis Q4.
Ajay Sharma
Q4 it’s 35 crores, right? 35.
Rishi Kothari
3.5. Yes, 35,
Ajay Sharma
3.5 and 55 compared to Q3.
Shivshankar Lature
Yeah. So he’s, he’s, he’s comparing this year Q4 versus last year Q4 this is what he’s asking. Okay. 23 versus 35 hours. [Foreign Speech] Ah cost of material consumed people last year was 23 crores. This quarter is 35 million
Ajay Sharma
Last year [Foreign Speech] material cost 10.11 material.
Rishi Kothari
But on that front my expense margins were pretty much, you know, stable on that front. Otherwise though my margins would have hit very drastically. Why other expense? I also want to ask other expense, what exactly do we include if at all? There is a huge fluctuation in the cost of material consumed. Right. So it’s true. What I can tell you is
Shivshankar Lature
My operation cost has gone down because of a massive rollout which we did in Q3. My operation cost on per side basis has gone down. So overall my cost has reduced in terms of actual operation expenses. About this I think we will get back to with the query share your email ID On a cover message we’ll share with the entire breakup of this.
Rishi Kothari
I mean I would be very happy if a cost, full breakup of cost would be, you know, if you’re able to provide that. And also on the other questions I had. Apart from cost, the other income has also reduced drastically. I mean. I mean what exactly is driving our other income? First thing and if at all that is the thing. Is it a sustainable thing for a future next two, three quarters? How exactly we are looking at
Ajay Sharma
Other income. [Foreign Speech] Last year. Last year. Last year 31st March 2024. 90% loan. So other income is not my main source of business. [Foreign Speech] Think as previous requirement
Rishi Kothari
Which I get it. But I mean last quarter I margins pretty much sustainable. Right now we are again sustainable. So we are claiming that 32 to 35% of the margins are sustainable for us.
Suyash Lature
So even if you see you receive my other income percentage is right now very low. Other income is only interest from loan or bank rent or something. My entire EBITDA and PET are sustainable based on my revenue from operations.
Rishi Kothari
Okay. And sir, also in terms of employee benefit expense, how exactly is it drastically increase? I mean we are hiring more people for it. How? What exactly is the reason behind that?
Suyash Lature
One is this 27 crore car is which has increased the employee benefit.
Rishi Kothari
I’m adjusting for that. For that post that we have seen
Suyash Lature
There was a change in director. Obviously we are hiring more people. There is a recruitment drive which is going on. But major impact has come. Because there was a revenue from directors. There was a change in some revenue from relation to directors. And yes we are hiring more people. Because since we are rolling out more sites we’ll need to also hire people in terms of operation scheme. And that is also driving the upward cost of employee benefit.
Rishi Kothari
So in a way we have changed the compensation for our directors and management level.
Suyash Lature
Yes. Plus a employee addition put together. Other than
Rishi Kothari
Do we have any sort of breakup for that at all possible for you to give,
Suyash Lature
We will share with you.
Rishi Kothari
Sure.
Suyash Lature
So what I suggest you can just send a bill on our CA investor ID with all the data you need. And my CS will revert back to you as per the SE rules.
Rishi Kothari
Okay sir, I’ll do that. And in terms of.
Unidentified Speaker
All right. Again I think you can just get back into queue. There are a few questions we’ll take first.
Rishi Kothari
Thanks.
Unidentified Speaker
Thank you. Thank you. You can unmute and go for your queries please.
Unidentified Participant
Thank you.
Unidentified Participant
Sir, as on the 31st of March we have 5,700 towers. 7,000 odd tenancies.
Unidentified Speaker
Right.
Unidentified Participant
So can you just give me a number what does it look like by the end of FY26 and also FY27 and then how much? Yeah. And how much incremental capex do we need to you know get to those numbers?
Shivshankar Lature
So what we are planning is another 4000 towers in FY25. So 5700 will go to around 9700 plus towers in terms of 10 see it will be 5000 credition both the years. And we are planning capex of around 400 crore in each financial year. We we need an on an average 10x capex per tower between different categories of tower. So if I’m able to roll out 4000 tower in current year then I need 400 crore stock capex. And same goes for next FY also. And we are targeting to achieve tenancy of 15,000 by next FY end.
Unidentified Participant
Got it? Got it. Now this 400 crores also if you can break it up year by year how you will get it in FY26 and then in FY27.
Shivshankar Lature
For FY26 we are. We are raising 100 crores one bank debt right now another 150 crore is from internal accrual so it becomes 250 crore. Another 50 crore will come from promoter for their past quarrels and esop. So we are able to get for. So we are able to reach around 300 crores easily. And 100 crore shortage will again go for bank deck where we are working with the bankers for next financial year we have still not have a clear plans. As and when we get some positive outlook we’ll update you on every quarterly one. But this year we are more or less that will be able to arrange 400 crores easily for next year. We’ll update you as and when we get some positive feedback from the lenders or maybe bankers.
Unidentified Participant
So. So it is 200 crores of loan, 150 crores of promoter internal accruals and 50 crores from the proposal. Sorry.
Ajay Sharma
[Foreign Speech] 8
Unidentified Speaker
[Foreign Speech] minute simple sir. 400 crore may say 200 is income from bank. 150 from our internal accruals and 30 crore ESOP is there. So 380 is corrode. 20 or some less is there. We can manage it. Okay. That is the
Unidentified Participant
[Foreign Speech]
Unidentified Speaker
[Foreign Speech] 400 from 31st March till now we have got more or less 70 crores and another 30 crores are pipeline which will come anytime in Q1.
Unidentified Speaker
So Q1 we have already raised. You can assume that we have raised 100 crores in Q1 balance. 100 crore will be followed in next quarter.
Unidentified Participant
Okay. And I don’t understand 150 crores of internal accruals also. Can you also break it down?
Unidentified Speaker
Just see the operational cash flow. The high, very high operational cash flow we’ve got. And even if you see my pet which is around 35%. I haven’t top line of 192%.
Unidentified Participant
So 80 crores. OCF [Foreign Speech] 80 90. Which will eventually come. You know in quarter by quarter. So I still don’t understand. 150 crores.
Ajay Sharma
Sir. Sir. [Foreign Speech] 90. 120. Karod abi satis karoka isopkajo 30 or 30. 60 and 90. 150 internal. It’s out of 100. See if you see my top line it’s 192 crores. 71%. 192. 71% sir.
Unidentified Participant
But that won’t be the cash that you will get, right? You have receivables also
Unidentified Speaker
[Foreign Speech] use this 150 crores. And next quarter of finances. I also have a credit period for my suppliers.
Unidentified Participant
Got it? [Foreign Speech] Half wise explain Capex, right.
Unidentified Speaker
That will be the more better. Yes.
Unidentified Participant
H1 and H2 right? Correct.
Unidentified Speaker
Correct.
Unidentified Participant
[Foreign Speech] To H1K already here. Is that understanding clear?
Unidentified Speaker
Yes sir.
Unidentified Participant
[Foreign Speech] H1K Apna Pass and H2 May Abihame Uskal arrange connect, right?
Unidentified Speaker
Yes sir.
Unidentified Participant
Got it. And sir average revenue per tenant per month is [Foreign Speech]. Yay Afigure desk.
Shivshankar Lature
Close to 35,000. So it will vary from operator to operator. But on an average it will be around close to 35,000.
Unidentified Participant
Got it. And on the fundraise part, [Foreign Speech]
Unidentified Speaker
No planning as of now. We’ll wait for how market here and then we’ll see. And that’s why we have not given you any fundraise possibility for this 400 crore of current FY where we are keeping foreigners other than g fundraisers. So 400 crores is only from bank deck Internet.
Unidentified Participant
Got it. And sir, [Foreign Speech] loan access bank, ICIC Bank. Can you please explain that again?
Ajay Sharma
[Foreign Speech]
Unidentified Participant
Got it. Got it. I’ll join back in the queue. Thank you.
Operator
We’ll take the next question from Saket Kapoor. Saket, you can unmute and go ahead please.
Saket Kapoor
[Foreign Speech] Closing debt long term
Ajay Sharma
[Foreign Speech]
Saket Kapoor
[Foreign Speech]
Ajay Sharma
9.5.
Saket Kapoor
9.5. [Foreign Speech]
Unidentified Speaker
[Foreign Speech]
Saket Kapoor
[Foreign Speech] Okay. Financial reporting or numbers chick Investing community may understood [Foreign Speech] Clarity, perception, preferential allotment declining trend. So you say promoters or perception market anticipate a
Ajay Sharma
[Foreign Speech] pnea Both rightly questioned. Puja may achieve Jab Amna fundraising program Kiatato 187535 May Ayata the sudden American view Qaja Amara Prize Naya Akhelika Gira Purim. Market that is first point, second point if not fund raised by market. So we are going for the depth purpose. So market understand [Foreign Speech] operators. [Foreign Speech] There are two models are there? And out of two model one model is not lucrative for us. So we have gone to depth model. So [Foreign Speech] target [Foreign Speech] to meet deployment of site. That solve the issue.
Shivshankar Lature
I will give you three bullet points over here. First thing as a company we are very sure that market will react to our results and our performance. So as a company we have purity and purely focus on our performance. We want to achieve what we have committed or what 10,000 terrified table. So our focus is absolutely clear in terms of whether top management or any employee of the company. Focus is only and only on performance. And we are confident that if I am able to achieve my guided numbers market will surely react positively to my result.
Second, in terms of perception, yes I. I would you know, accept that yes, there have been some communication gaps which are happening when we are declaring some results or something which we are working on. And it will be rectified immediately with immediate effect. And next quarter onward I don’t see there will be any gap between investors perception and company’s performance. But yes, performance is guaranteed. And I’m also confident that market would react positively to our performance
Saket Kapoor
5G rollout nationwide. But the the fiberization part of the story. Your percentage so lower side quality of 5G because [Foreign Speech] fiberization.
Shivshankar Lature
[Foreign Speech] Fiberization has two parts quick. One is underground fiberization, one is aerial fiberization. Now underground fiberization is very costly because of. If you see Mumbai. 1 crore per km where operators are not very keen to invest. So if you see my model from day one we are focused only on area fiberization and structured aerial fiberization. Luxury in a new row. Even structured fiberization has been made an option as a legal option for all the operators. So number of fiber like BSS has recently done one tender in antennas for fiberization. There are many more such standards which happening is going behind the fiberization. See, Jio is already 75% fiberized tower. Iter is close to 5560 fiberized tower. BSNs has become very aggressive. They are running multiple projects for fiberization. And Odafood is also going for it is fiberization. So 5G quality will improve. 100 5G services will improve. Yes, fiberization is not an overnight job. It takes lot of effort, a lot of time. So you can see next 2, 3, 4 quarter there will be many much fiberization projects which are getting deployed and tower are getting fiberized and improvement is there 100 there and people are investing in fiber. But yes, there’s a different model now. Initially it was all underground fiber. Now more or less focus on aerial fiber or structured fiber. Which series has been fallen from day one. So always as always even in fiberization we are one step ahead of market. Because we were aware this was coming, right?
Saket Kapoor
Okay sir, I joined the queue.
Operator
Right. Thank you. Mr. Saket, I would invite Mr. Tushar Talwar to ask the question from the chat box. Yeah, he has raised a bit. You can please unmute and ask the question.
Tushar Talwar
Good morning sir. Thank you for taking my question. I just wanted to ask sir that it’s been now two full audited financials where we have an emphasis of matter on the lack of internal controls. I just wanted to ask like why is this continuing for two years in a row and what is the laun that we are not able to fix for two years in a row that our auditor has to give this kind of a comment.
Unidentified Speaker
You are taking it
Ajay Sharma
[Foreign Speech] IFC Internet finance control system automation requirement already software companies automation Q. To comment particular subject.
Shivshankar Lature
So let me take this question ahead of from here. You already started right? Sorry I missed your name right. So in terms of IFC we are very strong. We have an in house IFC team where and understand my billing is subject to all MSAs. Then we have only 4 customer 4 MSAs where my billing are governed by master service agreement which also were cross verified by operator. So there is any hardly chance of revenue leakage over there. In terms of cost again we have four or five suppliers to which we pay cost against the invoices. But yes where we are lacking is an automation. We have started a journey of automation institute. We have already deployed software in warehouses. For us very strong inventory control because inventory is my topmost priority.
So already deployed software over there. Now we are creating our own network operating system to manage my uptime and improve operational efficiency even in terms of cost. So we have already deployed this. We have started deployment in Punjab Circle. In next three or four months we’ll have a network operating system which is remote based monitoring system and a SIM based monitoring system which will deployed in next 6 months across India for all my 5700 towers. Same way we are also working with few software company like Samaj for an automation of billing. So only that remark is pertaining to automation rather than actual IFC control.
Tushar Talwar
Understood sir. So I. This was just coming from Saket Ji’s question also. So I understand that you know you may have everything completely transparent and under control internally but you know as far as an investor is concerned sir an emphasis of matter is a serious issue. So maybe you need to take it from the auditors and like what do you need to get rid of this comment and then work backwards from there. Because this is going to be very important going forward. And you know when you’re raising for funds from third party investors, preferential issue. These are things which weigh on investors minds and they will continue to weigh the longer they remain on the. On. On the. On the books
Shivshankar Lature
On it. So we’ll speak to the auditor and let him frame it better way. And as a company always been transparency. You know my numbers are with most of the investors. Even since today morning I’m receiving and I’m transferring sharing all the numbers and figures. So in terms of transparency I. I actually personally doubt that any investors would have doubt in mind whether Suyog is transparent. We have been absolutely open book and transparent with you. Yes there are certain remarks on which we have to work with auditor and get it proper framed or get.
Tushar Talwar
I understand, I understand. I understand your business capital allocation and capital efficiency business. So you know these kind of things. Even though for someone who understands the business well, this is I understand what is happening, but for others it may not work out that way. And you know, where there is a doubt, people prefer to just stay away. That is a point number one. So point number two was on the esop, sir. So I. You know, we are not able to find at least I’m not able to find any disclosures around the ESOPs. These 5 lakh ESOPs that have been issued, that is fine. Maybe I’ve missed it on the exchange website. But my larger question
Unidentified Speaker
Will share. So if you send a mail to my CS on investor ID for the disclosures which we have declared all disclosures on exchanges.
Tushar Talwar
Right. So my larger comment on the ESOPs was that you know, given that you know we are a cash flow generation business and we don’t trade at a very high price to earnings multiple so is it really a good idea for us to permanently be diluting, you know, 5%, 10%, 15% via ESOPs at you know, such a low valuation when instead you could come up with some sort of a, you know, a variable compensation element for these employees and actually pay them out in cash when the milestones are hit. Because as you know dilution is permanent, you’re going to raise more money in the future also there’s going to be more dilution. So you know, as an investor who’s looking at this as a capital allocation business, you know you allocate large sums of it’s a capital intensive business, you make high returns on cash. A permanent dilution of such a large magnitude happening this year and then I think someone mentioned that it’s going to happen again next year as well mean so maybe we need to think about that
Shivshankar Lature
Sir, because I give my version of it. We are not into manufacturing industry where we are dependent on machines, we dependent on manpower, we to service industry. So my 100% of revenue comes from manpower efficiency and manpower hard work. Now what I want see if you say the larger picture even though if I’m able to I’m diluting my maybe 2%, 5% lower rate. But from a bigger picture perspective, if that improves the efficiency that motivates my employee who can give me double the efficiency then at overall will be traded at high value based on my performance. Now we want even employee blood and money to be part of our company so they get more motivated. See now we have employees across India. It’s not that your employees stationed only in Bombay office and most of my employees on field who are working day and night.
So if I am able to show them that if you are able to perform xyz you are able to achieve your target. You have certain shares which valuation will go by XYZ it motives them further and at the overall company level it becomes much more beneficial in terms of valuation or traded value.
Tushar Talwar
Understood, sir. And so just to clarify, someone in. Someone had asked a question. So the exercise price of these ESOPs is 542something per share?
Shivshankar Lature
No, no, no, no. 541 is the difference value between exercise price and the Fed value. Right, sir.
Tushar Talwar
So what is the exercise price, Thermaji?
Ajay Sharma
Around 300.
Tushar Talwar
Around 300. So that’s exactly what I’m talking about, sir. You need to price your ESOPs a little better, sir, because the market price. Price has not been near 300 for a very long period of time. And ESOPs are supposed to incentivize for the future.
Ajay Sharma
Yeah.
Tushar Talwar
Should be some. We are taking a outsized impact on our P L Because you you are giving a much lower exercise price.
Shivshankar Lature
Sir see one minute. One minute eight minute. Hold on. See that. Sir, the employer salary is ranging between 5 50,000 to 1 lakh or 150. Okay.
Tushar Talwar
Right.
Shivshankar Lature
So how can they raise their money for 300 rupees. Suppose when the person is there 15 lakhs whole year salary. He is to invest in my shares only.
Tushar Talwar
So you can give them a loan. There is also financing these days
Shivshankar Lature
There are a lot of option is there. But company decision is ultimately we have to take care. These are the agreements of 15 to 20 years. And our SLA time is 99.9. So we have to only depend upon our the people. So if we unless and until they are they will also the growth story part. How should they participate in our company Then it will be coming and going system will be happen.
Unidentified Speaker
Let me. You know explain in detail. Basically what we have done is this ESOP don’t get allocated blindly to any employees. If you see my age on network of family employees average it will be seven years plus. So if you take and that telecom industry attrition rate is lowest in. So your telecom any tower come you take. Attrition rates are very high. If you see attrition ratings maybe you can come down to office and ask any employee. You’ll find employees 10 years, 15 years. 7 years minimum. My average would be 7 to 10 years minimum. People don’t give me and if they. Because we want. Like sir said. We want people to be become part of my growth story. Because all my agreements are for 1520 years. Here we don’t have office timing. We were 24 by 7. Because we are on a live network. And we’ll have to keep motivating people to have a very low attrition rate. And that’s the reason we are doing this t
Shivshankar Lature
Eam is very old and this policy was been in. We have taken this approval in 1920. And we are executing in 2025. So see the people also waiting for a long time.
Tushar Talwar
All right. So sir I’ll leave that to your good judgment. I just wanted to bring that up.
Unidentified Speaker
Yeah. Thank you.
Tushar Talwar
Thank you. That’s all from my end.
Operator
Thank you. We’ll take a take a question from the chat from Rohit Pya Darshi. He’s asking. Hi sir, can you tell about the capex we did in FY25 worth 138 crores.
Unidentified Speaker
What you want to say?
Operator
Can she you unmute and explain it in a better way? Because I’m not able to understand the question only. Hello, Mr. Rohi.
Unidentified Participant
Hi, sir.
Shivshankar Lature
Yeah, hi.
Unidentified Speaker
So can you reframe or re ask your question what you asked in ch.
Unidentified Participant
I was looking at this cash flow statement and there was this purchase of PPE worth rupees 130 odd crores. So can we get a breakup? Like what is what what is the source? Like where do we spend this money Exactly.
Unidentified Speaker
And fiberization only.
Shivshankar Lature
I tell you a breakup where we spend this money. One is my tower structure which is 50% of my cost balance. 5
Unidentified Speaker
[Foreign Speech]
Shivshankar Lature
0% goes in SMPs. Balance 40 goes in SMPs and battery bank. So majorly I supply my. I get supply of my tower from Odis and nasik. We have two major supplier of tower. SMPs are from all the branded companies like Delta, VNT, Greenpool Battery. Banks are from Intellect, Amaraja. And we are also now converting from we are to lithium battery. And 10% is miscellaneous on that tower. So these are the only major bucket where we spend our money.
Unidentified Participant
Okay. Okay. Thank you. Thank you. Got it.
Operator
Thank you. Rohit. We’ll take a follow up question from Mike. Mike, you can unmute and ask a question please.
Mike Talati.
How much of this E is given to the promoters?
Shivshankar Lature
No, no, no, no, no. Everything is to employees only.
Mike Talati.
Okay. And what is our cost of debt?
Ajay Sharma
Cost of
Mike Talati.
Debt.
Shivshankar Lature
The loans interest
Ajay Sharma
9.5. A
Mike Talati.
And what is the maximum amount of interest that we are paying for this loan? Like I understand there are multiple tranches.
Unidentified Speaker
So highest percentage, right? Highest percentage of loan. Highest percentage [Foreign Speech].
Ajay Sharma
Highest percentage [Foreign Speech].
Unidentified Speaker
And percentage
Ajay Sharma
9.5.
Unidentified Speaker
9.5 is the highest percentage.
Mike Talati.
Okay. And sir, there is a decrease in the official quarterly trend of the realization per tower. There is a decrease from close to 35000 per month to currently.
Shivshankar Lature
Can you just hold. I believe he was asking some question. And you unmute yourself I think right? Or you are together. I don’t know.
Mike Talati.
Yes. Yes sir.
Shivshankar Lature
Okay, you’re together. Okay. So can you repeat your question?
Mike Talati.
Yeah. So my question was if we see the quarterly realization per tower trend there has been a slight significant decrease from 36,000 per rupees to 29,000 per rupees on a monthly basis. So what is the specific, what is the reason for the same?
Shivshankar Lature
So we have done a huge rollout of upgrade and small cell. So if you see this revenue also consists of upgrade and small cell. So my entire last year is. You see it revenues increase. Your revenues increase. That’s only from upgrade. And secondly we are doing lot of small rollout in Mumbai and all the metro cities of India. So that’s why your per site realization goes down when you do small cell and upgrade. But then your EBIT and PET is better in both the category compared to my metro sites.
Mike Talati.
But sir, in F. In FY25 we have added only 196 small cell tenancies. And majority are majority petal in view, right? Yes.
Unidentified Speaker
Upgrade gives me a much better margin and a low realization per site. Because when I do upgrade around 4 to 5,000 per site per month. So that’s why you’re seeing it as a 29,000.
Unidentified Participant
Okay. And this will be sustainable going forward and we might see an increase.
Shivshankar Lature
No, it will increase because now I’m doing more or less macro tower. So realization per tower will increase in coming quarters. Wonderful.
Mike Talati.
And sir, in the opening commentary you mentioned that there was there was an increase in the order book from the bsnl. Can you please specify number of numbers
Shivshankar Lature
As for my agreement or Ms. B I disclose number. But what I can say we are working on a multiple projects with bsn. One is a new site rollout where we are building anchor sites for bsn. Second is their relocation sites where their existing site they want to terminate from the existing IP and move to suo. And third the new site product which they have given to many IPS and they’re not able to deliver. There is an official letter released by bsrs stating all the non performing ips needs to cancel the associ for the non performer ip and nick to given to suyo. So between three projects we are targeting around 5,000 order tenancies from BSN in this financial year. But I cannot use specific number for each year.
Mike Talati.
Wonderful. And sir, so in for ESOP the fair value is 541 or it’s higher. It’s 841. What’s the fair value?
Ajay Sharma
541.67 is the fair value.
Mike Talati.
Sir. Then the Difference excess price is 341. So the difference will be 241.
Shivshankar Lature
Difference value is 542. Fair will be higher. Hello.
Ajay Sharma
Hello.
Shivshankar Lature
[Foreign Speech]
Mike Talati.
Sir. Fair value 541 excess fair [Foreign Speech] values difference. F
Ajay Sharma
[Foreign Speech]
Mike Talati.
Air value 541 [Foreign Speech] difference paragraph
Ajay Sharma
[Foreign Speech] registered value at. [Foreign Speech] 541.67 Market price 771 that was in 2000 October 2023.
Mike Talati.
Okay, understood.
Ajay Sharma
Exercisable value.[ Foreign Speech]
Mike Talati.
And sir last question. When are when we are in need of funds what is the reason for being dividends
Ajay Sharma
Need of fund [Foreign Speech?
Mike Talati.
[Foreign Speech]
Unidentified Speaker
[Foreign Speech] So any we happy when comment such comment comes from investor that you can post the dividend and invest in Capex. That’s absolutely encouraging from your side. But yes as we say we take care of all our stakeholder like we take care of employee. We also want to take care of one of our most important stakeholder who are investor and that’s why we have declared dividend.
Mike Talati.
Okay, thank you,
Shivshankar Lature
Thank you,
Operator
Thank you. We’ll take the follow question from Mr. Dashil Pandya Dash, you can go ahead please sir just you k
Unidentified Participant
Now only one question from my end. If I’m not wrong our promoters were supposed to infuse around 100 odd crores during the prep. Is that right?
Shivshankar Lature
Right.
Unidentified Participant
Yeah so, so just, just you know just a thing that came up like you know since our stock price has corrected significantly don’t you think it’s the right time for the promoters to step in and you know increase their stick and also you know boost the market.
Unidentified Speaker
Sir, sir, sir, one minute, one minute, one minute, 1 minute. Hold on sir, out of that 521 I have already increased my 5%. Stay. Okay, second part is that your suggestion is welcome no doubt at all. For that I am ready to invest but the purpose is that the money will not come to company orders are seeing in a vision. We will think on that.
Shivshankar Lature
Okay, I think I will rephrase the answer. Promoter is 100% interested in increasing.
Unidentified Speaker
Most tech they are already. We did warrants last time. Unless that warrant gets completed, one more warrant cannot happen. Right. So that warrant is still due for conversion right now. And he is 100% ready to invest anymore. And we also got some feedback from other investors stating if only promoter invests then there can be a. You know logic that company is giving warrants to promoter but not diluting stake with other investors. You also don’t want to send that wrong signals. But in terms of readiness, promoter is 100 confident on the business and they are ready to invest any amount of money in business. So let this warrant conversion get over. Then we’ll think about your suggestion. We may move forward.
Unidentified Participant
Got it. All right.
Operator
Thank you Darshan. Thank you. Thank you darling. We’ll take the question from chat from Karthik. But he’s asking could you please explain about tax percentage as it’s varying over the years.
Ajay Sharma
Tax percentage at 25 plus 12 plus 4%.
Unidentified Participant
So basically tax percentage [Foreign Speech]
Ajay Sharma
[Foreign Speech] expense or amortization [Foreign Speech].
Unidentified Participant
Okay sir. So there is a follow up question from Mr. Tushar Talwar. He said I need to ask a follow up question of esop. Response to his question was that the difference in fair value was Rupees 540. But. But in subsequent question the response was that the Excess price is rupees 540. Can you please clarify on that?
Ajay Sharma
Value of option is 541.6.
Tushar Shah
Basically we have done an evaluation report from a registered valuer. As per registered valuer if we take exercise price of 300 rupees the impact which will hit a PNL would be 541. So difference between the market size of like explained earlier and exercise which impacts my pnl. I think I have clear this now.
Unidentified Participant
Yeah, that’s fine. Thank you.
Unidentified Speaker
So there’s one. One question from Make Shah FY26 revenue and operating margins guidance. Expected revenue in FY26 and operating margin guidance also.
Shivshankar Lature
So we are expecting around 320 crores of top line in FY26 and will sustain EBITDA margin at around 62%. 65% and packed margins would be around 32%. Good. 35%.
Operator
All right sir. We’ll take a follow up question from Varun Gia. Varun, you can unmute and ask a question please.
Unidentified Participant
What is this? How much tenancy ratio? Can we see increase in tenancy ratio in FY26?
Unidentified Speaker
We should be able to touch and tenancy raise of 1.5 on overall portfolio basis
Unidentified Participant
In FY26.
Unidentified Speaker
FY26.
Unidentified Participant
And what is the rental yield per tower?
Unidentified Speaker
So it’s. It should. Right now it’s around 29 30,000. It should go to 30 to 33,000 in FY26. Because we are doing more often macro cycle route now. So it will increase the yield. Hello.
Unidentified Participant
Hello. The yield. How much percent do you earn on that?
Unidentified Speaker
In terms of percentage of. Hello.
Unidentified Participant
Hello. Rental yield in terms of overall revenue.
Unidentified Speaker
Enter revenue from rental and ipc. Right? Can you explain the better way? Hello.
Unidentified Participant
Hello. Field value per tower in. Okay. And what is this goodwill of 10 cross? This is related to Lotus Infra. Lotus Infra
Unidentified Speaker
Company which we purchased.
Unidentified Participant
Okay.
Unidentified Speaker
31st March.
Unidentified Participant
Thank you. Okay.
Operator
Thank you. So there is a question in chat from Himanshu Agarwal. How much e is pending?
Ajay Sharma
57720 es are issued in the taken in exercise or next 10 lakh 14,004 pending. Okay sir. We’ll take a follow up question from Rishi Kotari. You can go ahead please.
Rishi Kothari
Thanks for the opportunity again sir. In terms of tower addition and tendency this quarter we have added at what percentage increase this time? Tomorrow
Unidentified Speaker
Number of towers we have just added 50 to 70 tower. My major was not happening Q3. So at overall yearly basis we have added 180010 days on.
Rishi Kothari
Okay, this quarter was pretty much muted because mostly we did in Q3.
Unidentified Speaker
No, it’s mainly because we were not able to arrange first. Because at at end of Q3 we withdrawn our preferential and bank deck. We were able to materialize bank that only in last month of the Q4. So that is the reason Q4 rollout was lower compared to Q3.
Rishi Kothari
So this, this, this actual muted tower addition growth should affect my P and L next quarter, right? If at all top line or whatever. Yeah,
Unidentified Speaker
Yeah. So it will not have an actual impact as there will be a delay on pnn. Impact of pain is only for one quarter of crude oil. Because my entire target is getting shifted by one or two quarter because of the funds management. Otherwise you will not have actual impact in long run.
Unidentified Participant
Which I get it. So now we can say that for the next quarter or something we are still not pretty much, you know, very good or higher numbers in terms of the growth rate. Right. At least for a quarter or two, probably full year, we might achieve the target.
Unidentified Speaker
Yeah, you are right. Next quarter could be muted because of that. Because we do not have able to arrange one.
Unidentified Participant
Right. Okay, interesting.
Rishi Kothari
And in terms of I managed to say that 320 odd colors of top plane, 32% margin that comes from or 20 to 25 colors of bottom line per quarter. And we are claiming of next two quarters of a bit mutates. So most of that path will be seen in H2 or FY26.
Tushar Shah
No. So 1Q1 would be muted since now we have arranged funds in Q1. Q2 would be aggressive rollout. Q3 would be the highest rollout. Q2 also gets infected because of rainy season. So if you see a seasonal every year, Q3 will always be highest followed by Q4. So we are seeing a massive rollout starting from Q2, Q3, Q4, all three quarters. Since now we are able to make arrangements. But SQ2 would be lower compared to Q3 and Q4.
Rishi Kothari
Okay.
Tushar Shah
Because of rainy season impact. Okay. And Q1 would be muted because of the Q4. We did not did any rollout now. So in terms of numbers, tower number will get in Q1. But in terms of revenue as it would be muted because there was no major rollout in Q4.
Rishi Kothari
Okay, great. Okay, thank you. Thank you so much for that.
Operator
Thank you very much. I now hand over the call back to Vinay. Sir. Thank you very much, sir. Is there any closing comment that management wants to give?
Unidentified Speaker
Yeah. Yeah. First of all, I want to.
Tushar Shah
Thanks everyone for joining the investor and their valuable suggestion. I want to two things want to clear Previous year we have learned more thing about the market situations. And now this. 26, 25, 26, 25, 26, 26, 27. We also want to enter in EPC contract of the DSNL for new tender has came for 40 meter for all over India. More than 3000 crore tender. Previously we are working in IP model also. But this is the new opportunity is coming to market for erecting and operation maintenance for five years of the tower of the bsnl. So we are looking for that and we are preparing the tender. This June end we may participate in the tender of bsnl. We have good relations with the BSNL for their rollout. So they are insisting us to go ahead.
So we want to increase also top line and as well as bottom line what we have planned. So we are new venture is adding to Su Yok feature that one of the EPC contract also. We want to start vertically to get the immediate funds also and increase our profit and top line as well as bottom line. This is the final comment from my side. Okay. We are looking great future for the suu.
Unidentified Speaker
Thank you very much sir.
Tushar Shah
Thank you.
Operator
Thank you to the management team for giving us their time. Thank you to all the participants for joining us on the call. This brings us to the end of today’s conference call. You all may disconnect now. Thank you.
Shivshankar Lature
Thank you.