TECHNO ELECTRIC & ENGINEERIN (NSE: TECHNOE) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Unidentified Speaker
Padam Prakash Gupta — Managing Director
Ankit Saraiya — Whole-Time Director
Analysts:
Unidentified Participant
Suraj Sonulkar — Analyst
Sandeep Agarwal — Analyst
Garvit Goyal — Analyst
Deepak Poddar — Analyst
Vikram Datwani — Analyst
Samarth Khandelwal — Analyst
Prathamesh Sawant — Analyst
Ravi Naredi — Analyst
Shreyansh Gattani — Analyst
Shrey Gandhi — Analyst
Spasht Sharma — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to the Techno Electric and Engineering Co. Ltd. Q4FY25 earnings conference call hosted by Asian Market Securities Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suraj Sonulkar from Asian Market Securities Pvt. Ltd. Thank you. And over to you sir.
Suraj Sonulkar — Analyst
Thanks Navya. Good afternoon everyone. On behalf of Asian Market securities we welcome you all to the Q4FY25 earning conference call of Techno Electric and Engineering Company Limited. We have with us today Mr. P.P. Gupta, Chairman and Managing Director and Mr. Ankit Saraya, Director representing the company. I request Gupta ji to take us through overview of the company quarterly result and then we shall begin with the Q and A session. Over to you Gupta ji.
Padam Prakash Gupta — Managing Director
Thank you, Suraj. Very good afternoon to all of you and welcome everyone to discuss Techno Electric financial results for Q4 and year ended 31 March 2025. Anything said on this call which reflects our outlook for the future or that could be construed as a forward looking statement must be reviewed in conjunction with the risks that the industry and in turn our company faces. Let me highlight our performance when we look on the Q4.25. The total revenue of the company stands at 812 crores up by 68% year on year. Probably better than any of the previous quarters.
EBITDA for the company stands at 102 crore up by 74% year on year. The EBITDA margin is at 12.64%. The other income is 69.75 crore compared to 30.86 crore last year up by 126%. The profit before tax is 167.18 crores compared to 83 crore last year. The PAT is at 132 cr up by 91% year on year and EPS is at 11.42 per share. If we look on the whole year as the close of the year the revenue stands above to 2400cr. That is 2.02 up by 43 year on year which is so far all time high for the company.
The EBITDA for the company is at 328 cr up by 45%. Year on year the EBITDA margin is at 13.66%. The other income is at 175 cr up by 34%. Year on year the profit before tax is at 485 gr, up by 45%. Year on year the profit after tax for the company stands at 428 cr compared to 269 up by 59%. The EPS is at 37.65 compared to 25 last year. We have been getting compressed schedule due to delay in acquiring land parcels by our customers for setting up of the facilities and they want their projects to be operational as per COD dates forming part of their concession agreements.
They are ready to even incentivize us to achieve these complex schedules. We are pleased to share with you that we have commissioned a 20 bay 765 by 400kV prestigious seeker substation or poor grid comprising 19 elements of transformer oblique reactors that is equivalent to 3 gigawatt of transforming capacity and 1.2 megawatt reactive of reactive capacity. A project of the power grid in a record time of nine months, first time in the country which otherwise would have taken in the past normally two years or more. Similarly, now we are battling the timeline on the behest of power grid in setting up of a prestigious 33 way substation of 765 by 400kV at DOSA comprising of 28 elements of transformer and reactors which are equivalent to 3 gigawatt of transforming capacity and another 2 gigawatt of reactive capacity.
This is a wonderful journey for the company. I’ll say. A compressed schedule increases the productivity of the resources deployed which includes mechanized construction equipment, skid labor, horses and the cost of bulk procurement of local inputs. Materials decompressed schedule further helps in optimizing the establishment costs and thereby increasing working capital efficiency. This is now being practiced in other ongoing projects at Bidar, Halwad, Lakadia, Anantpur and many more. During the year we have successfully commissioned projects at 17 locations all over the country. Apart from this, in spite of increasing the revenue, we did not let our balance sheet stretch in terms of the working capital requirement due to better capital management, focus on cash flows and efficient utilization of resources.
Additionally, we have been able to convert our efficiencies into cash. This is evident from the numbers that our cash flow from the operational results which you may have observed that the company is cash positive by 837 crore compared to a negative of 337 crore in the previous year. This was possible as we have been able to convert trade receivables into cash. There was hardly any increase of debtors compared to previous year despite increasing revenue by almost 50%. The customers often support the performance and this has gone a long way. I am further pleased to share with you that the current investment value which is cash and cash equivalent as of the year end stands at around more than 2500cr that is about 220 or 225rupee per share.
Techno has been able to garner the better operating margins consistently over the years in this space compared to peers. We have been able to convert the profits into cash on our balance sheet and have one of the efficient working capital management processes in practice. The reasons are simple but needs to be practiced meticulously like speed of execution thereby ensuring timely completion of project, the timely collection of receivables including closing of the projects and realization of retention money avoiding interest meaning advance from the clients, better credit terms from the vendors backed by commitment to pay time so that prices so that the cost of procurement is within acceptable limits due to better working capital efficiency we have been able to be a debt free company since beginning.
We have never borrowed debt for our EPC business other than for our own asset deployment businesses. Apart from that over the past years five years as you know we have monetized our most of most of the assets in renewable power transmission assets and have collected cash of 1500 crores but additionally we also collected 1250 crore out of the QIP which we want to. We have a program of about almost about 10,000 cr increase in hand to be deployed in next three years. Out of this we have already deployed about 1250 cr in last two years as CapEx in our SPVS for setting up of data centers including health data centers, AMI projects and transmission projects acquired in TVCB mode and also in execution in partnership with GRID at Dhulay Shanagar.
The company is pleased to inform that Chennai Data Center Phase 1 is nearly complete and EDGE data center at Gurgaon is ready for operations. We expect during the year to deploy EDGE data centers at 10 locations and also deploy smart meters of more than a million in number and we have planned to successfully complete substations of 765 by 400 by 220kV level at more than 20 locations country wide in EPC mode and for our own concessions. You will be happy to note that we are deploying 220kV GIS substation in the highest altitude of the country at Ladakh and Kashmir at four locations and our labor never vanished Even during the Pakistan war, the patriotism was of so high degree seen in our labor force working very close to Pakistan border and China borders.
The order book momentum for bidding and order intake has increased in the second half of the year for the sector and as well as for the techno. We have robust order book at around 11,000 cr as of 3-2-25 which is highest in the history of the company. We are L1 in orders worth 800cr already we have received orders worth 2000crore plus in Q4 itself which takes the order tally for the year in total to more than 4150cr and our guidance for the year was around 3500 cross. We expect the order book momentum to continue and the order intake in this year is also expected to be around the same level.
This simply reflects we will have enough orders in hand to keep on the growth momentum for next two years. Our board have already announced a dividend of Rupees nine per share which should be to the delight of all of you building on the growth momentum witnessed in last two years. As you all know and as we mentioned in our last Q3 meet that our monthly revenue of 75 crore in financial year 23 is presently at 200 crore now and this is further plan to be enhanced to rupees 300 crore per month in the current year.
That is the target of the company of 3500 to 3600 crore this year. This confidence stems from our already achieved performance in last two years successfully. With this the ratio of order backlog to execution will also come down to 3 to 3.5 which is the interaction industry now. In the meantime the company will continue to grow up its strategic presence in data center space and the total deployed capacity by the end of the year is expected to be around 25 megawatt and at least 50 megawatt by 27. We are pleased to inform that Chennai Data center has been considered eligible for deployment of AI based applications including clouds.
The outlook is very very promising. Continues to be promising. India’s energy landscape is undergoing a significant transformation from historical sluggish energy demand growth over last decade to now registering nearly double digit growth driven by peak load targets scaling from 260 gigawatt to an ambitious 400 gigawatt by 2030 or latest by 2032. To bridge this demand supply gap, strategic investments are being channeled into advanced transmission Systems mostly at 765kV backed by Statcom VSCHVDC where we enjoy market strong market position. On the distribution front, massive smart metering rollout under RDSS and new reform link distribution system strengthening schemes will drive digitization efficiency and private sector participation which may be another area of focus for us.
The generation segment is also revived meaningfully with the government deciding to add another 80 gigawatt of thermal capacity, but mostly through supercritical and ultra supercritical technologies in place to have the emissions in control, opening up substantial opportunities on the balance of balance of plant and power evacuation infrastructure as switchyards on grid connectivity to this generating capacity. Simultaneously, the data center ecosystem is undergoing a paradigm shift driven by AI cloud 5G data localization imperatives. The market is expected to more than double by 2030. Our investment in hyperscale and nest data centers in Chennai, Kolkata and across 23 cities via railtel are very timely and strategically positioned to to be value accretive and capitalize on this.
We believe this convergence of energy transformation and digital infrastructure I will again repeat this we believe this convergence of energy transformation and digital infrastructure offers a multi year high growth opportunity. Techno Electric is strategically aligned, technically equipped and financially sound to scale alongside India’s ambitious India’s aspirations in both these mission critical sectors. So techno is very differently placed than many other companies in transmission line work. Let me brief give you a brief of outlook look and opportunities sector by sector. The key drivers for the transmission sector are integration of 500 gigawatt RE to grid needs, almost 50,000 circuit kilometer of transmission lines but more importantly is 4.33,000 FVA transformation capacity all time high in the country.
The National Electricity Plan Envy says 9.2 lakh crore capex by 2022. The power grid has already announced a capex of 1 lakh crore in next three years in ongoing three years with 1.75 lakh crore by 2030. In the finance budget the prime the Finance Minister in budget speech of 2025 said the government will incentivize the electricity distribution companies on augmentation of intrastate transmission capacity amid efforts to improve financial health and capacity of power farms. An additional borrowing of half percent of GSDP will be allowed to states contingent upon these reforms. This would bring an estimated opportunity of another one and a half lakh crore over next two years.
The EPC opportunities in this segment the TBCB model of projects will increasing private participation continues. The high end technologies like 765 KV AIs or GIS solutions backed by Stetcom or VSC HVDC will be the necessity to sustain this energy transformation and injection of renewable power in the grid inter regional corridor strengthening Green energy corridors for RA evacuations. The market for techno will comprise of bidding pipeline of 40,000 cr currently out of which techno’s potential will not be less than two and half to 3,000 crore per year for next four years. We currently have orders worth of 7,500 crore in transmission set by EHV Transmission segment and we as you know we also have two concessions in TVCB in Gogamook and Bocajan with a total revenue of 2,800 crore over the concession period and also are executing two concessions in partnership with Ingrid at Dhule and Nishanagar.
The various programs in the country on distribution side are RDSS scheme which is called revamp distribution and system Strengthening Scheme is 3 lakh crore plus Reform Link Distribution Scheme of 16,000 cr which is largely going to be implemented on triple P of leak privatization model and this will and our focus area will continue to be grid modernizations like GIS, AMI, SCADAs as we are doing for DVC presently in the DVC command area the smart grid deployments, loss reduction and power quality improvements solutions advanced smart metering solutions where we are already executing about two and a half million meters and there is another about a million at least about 100 million more to be deployed over next two to three years and we will have a market share of almost around 1 to 2% in this.
This offers us a high margin recurring OLM scope under Tortax model because the very good session involves CAPEX plus operations data driven DISCOM transformations to manage their own supply side management and as you already know that we are executing now two and a half million meters which concessions we have won. We are expecting further of concessions of another half a million meters or a million half to 1 million meters per year basis thermal generation. We have already talked about 80 gigawatt in the pipeline to be completed by 2030 which will facilitate both more of injection of renewable power and also facilitate peak demand of 400 gigawatt focus on supercritical and ultra supercritical plant technologies, EPC scoreboard, balance of plant air quality control systems like FGD carbon capturing as well as ESPs of digitized and modern based on modern technologies to ensure acceptable emission levels globally to 14mg only and similarly this opportunity is also expected to be no less than almost about a lakh road over seven years.
In the renewable generation side I will say there will be more opportunities in the solar plus storage hybrid systems, wind farm EPCs and we are yet to deploy another about 300 gigawatt in the balance six years government may plan even RD parks or floating solar parks. The EPC opportunity is 3 to 4 lakh crore and the budget for 26 significantly increased allocation to MNRE to by 39%. In this segment on the FGD side I will say that the NITI AAYOG has come back on its earlier report where they have given fresh dates to this sector commencing completion from 27 onwards progressively depending on the location of the generating plant.
This industry may eventually see a 5 to 10 gigawatt per year scope both from the private and state electricity boards. Our present order of 1450 cr is progressing normally Coming on Data Centers the digitization and cloud services are key reasons for growth of data centers alongside developments like 5G. Major growth drivers for data centers in India are public cloud adoption, data localization policy incentives, digital transformation, technology developments that is rolled out of 5G, AI, 5G and VR increase adoption by the enterprise technology market, IoT, big data and cloud computing. All these are very progressive and amishing.
Ankit, would you like to take over now?
Ankit Saraiya — Whole-Time Director
Yes, sure. So we are in as everyone is aware, we are in advanced stages of completing our project of 24 megawatt data center in Chennai. We have incurred an investment of almost 450 crores in the project while we have faced delays due to regulatory and permitting approvals, also due to supply chain disruptions, but having overcome all of them, we are now very close to commissioning our first phase of Chennai which is approximately 5.6 megawatt. We are in the final phase of testing and also onboarding few customers as we speak. Our pipeline in Chennai data center is growing. We currently have a pipeline of almost 80 to 100 crores and while having additional conversations with other cloud players and potential AI customers, the unique proposition that we provide to our Chennai data center is that it is designed for higher density of racks on an average compared to the industry. And additionally, being a water cooled data center or the only water cooled data center in Chennai and that region, we are uniquely placed to provide RACs specifically for AI services or AI related activities giving us a unique position in the industry.
We are currently engaged with multiple banks, content delivery networks, domestic crowd players and receiving positive feedback from them. We are actively we have recently participated in an RFP by a global bank and we hope that will be concluded in next three to four months time. Recent advancements in AI has obviously fueled the demand of data center, but more precisely the density of power required per rack what earlier we used to practice on an average at 6 kilowatt or 8 kilowatt per rack. Now people have started talking 25 to 40 kilowatt per rack and going higher as we speak.
This requires substantially higher resources per data center and data centers have to be designed to meet those specific requirements which we are very well placed to provide. India AI mission has recently commenced and first round of empanelment has been concluded and we are hopeful that with more empanelment coming through in round two and three we will have interest from multiple stakeholders to utilize our infrastructure as we call our facility AI ready. We have also establishing we are established and further establishing Channel partners distribution engine for reaching the wider market and as well as reaching global market.
Coming to Edge Data center we are aware that Realtel has awarded us with a concession to build Edge data centers in 102 cities. Last Saturday itself we powered on our first Edge data center in Gurgaon which is a small capacity of 200 kilowatt but goes a long way because it’s our first data center which has truly got powered on and appreciated by Railtel as well and we are hopeful that the capacity of 200 kilowatts, at least 75% of it would be utilized by Railtel immediately and we anticipate leasing out the remaining 25% which is 5 RAC within three months.
We have started execution of our second edge data center in Mumbai which is close to about 50 RAC, 450 odd kilowatt of density and it should be completed hopefully by November 25 or maximum December and we are in discussion with large conglomerates to lease out the capacity immediately on commissioning. We are also going ahead with discussion with a few hyperscalers for contracting at least 4 to 5 edge data centers in multiple locations across India. We have already shown our interest to Railtel to develop Edge data centers in the city of Gandhinagar, Indore and Bhopal and we are hopeful of getting the possession of the land very soon to begin expanding our facilities in these very cities as well. We target to also start our execution this year in the city of New Delhi and Hyderabad as part of our Edge data center concession. With Real Dell for Edge data centers we have created an extensive network of channel partners and distribution partners and we have started receiving active interest through these partners for occupying space within the Edge data center ecosystem.
We have also started execution of a data center in Calcutta. We have finalized the master plan and we have started with pre construction activities and very soon we’ll be applying for building plan approvals to begin full fledged construction. In totality we have a funnel of more than 100 crores including Chennai and Edge data centers in discussion with multiple natured customers whether they are Cloud, CDN, AI etc.
Padam Prakash Gupta — Managing Director
Thank you Ankit. So overall I would like to say that during the current year we are targeting a top line of 3500cr and EPS of no less than 50 rupees. And in the year 2627 our target will be around 4500cr with the EPS of no less than 75 rupees. With this now we can allow the question.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press one on the touchtone phone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sandeep Agarwal from Naredi Investment. Please go ahead.
Sandeep Agarwal
Thank you sir for the opportunity. So first question is regarding the PB period in various segments like a smart meter data center and small edge data center business.
Padam Prakash Gupta
You see these two are different businesses altogether. Smart meter is a concession based project where period is pre fixed by the government itself that they pay over 94 months. We call PMPM per meter per month post commissioning and immediately on achieving SAT or go live. What they call they pay us around 15% depending on the location of the project. That is how the reward is in the concession projects. Coming to data center is a total a market driven activity and it goes with the market dynamics.
By and large we anticipate a data center payback should be no more than five years in my view. But because there are many challenges of growing and changing technologies, applications, usages. They are all part of it. Would you like to add something to it?
Ankit Saraiya
I think you are. You’re on the point. The payback period for data centers is about five years. Yeah.
Sandeep Agarwal
So call up jail. So per megawatt is. Per megawatt revenue per annum is 11 to 12 crore. Business estimate is correct.
Ankit Saraiya
No, you can take it at around 8 to 10 crore.
Sandeep Agarwal
8 to 10 crore. Okay. So just another question is just book bookkeeping. Want to know the detail of the current asset line item which is 814crore approx.
Padam Prakash Gupta
What is the status of current assets?
Sandeep Agarwal
Just detail of current asset. 814 crores.
Padam Prakash Gupta
I think when you get the balance sheet you will find the details in that they are in the normal course of business. There is no exceptional in it. They keep rotation in rotation with the execution as happens.
Sandeep Agarwal
Just increase from last. Say it increased from last year. 250 crore. Approximately 814 crores. So just want to know what is…
Padam Prakash Gupta
You are asking on contract assets basically right? Not current. That contract asset is basically the investment in data centers and AMI or TBCV schemes. You know. They are yet to be built out. You know those. That is what we call contract assets. They are not capitalized in our SPVs but worked on behalf of SPVs by the HoldCo in deploying them. So that is a capex you can say indirectly carried out by the company in setting up these facilities like data center 4 500cr by now meters. Another 400cr by now. So it is that that amount here.
Sandeep Agarwal
Okay. Thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants. Please limit your questions to two per participant. I repeat, participants are requested to ask two questions at a time. You may rejoin the queue for further follow up questions. We take the next question from the line of C. CA Garved Goyal from Invest Analytics Advisory. Please go ahead.
Garvit Goyal
Hello. I’m audible.
Padam Prakash Gupta
Yeah, you are audible, sir. You’re welcome.
Garvit Goyal
Good evening. Good evening sir. And congrats for once again a decent execution in the quarter. So earlier you have guided for 3,600 cr revenue 26. I think in opening remarks now you said 3,500cr. So can you please clarify this?
Padam Prakash Gupta
No, I could not get 35 under cre. 35 under cr.
Garvit Goyal
Last phone call I think you mentioned 3600cr.
Padam Prakash Gupta
100Cr is not a big issue between us.
Garvit Goyal
I was just getting a clarification. Okay. So the guidance that. That guidance we have given given the challenges like land allocation and we are dealing with very efficiently. So how exactly do you plan to achieve this guidance like which segment will contribute the most to this growth and is it entirely from the existing order book standing today Or a portion of it will also be stated via the new incremental orders that we expect in FY26. So that’s my first question.
Padam Prakash Gupta
Look, this role of land acquisition is often performed by the asset owners. It is not in our scope, number one. Number two, our job starts once they hand over the land parcel to us. So most of these orders are already around three to six months old. Customers as per our information are really advanced acquiring land parcels. And we have taken that that into consideration already. But you must take into view that larger execution has happened last year. It will be same the current year also like 40, 16 in the H1 of the current year it will be 40% and H2 of the current year will be 60%. So it will go in the same manner.
Garvit Goyal
And which segment will contribute to this majorly?
Padam Prakash Gupta
No, it will all be from transmission FGD meter deployments. All will be element of it by and large. If you want to take the breakup, you can pay. Transmission will be 2500cr. Mission and Distribution FGD 500cr meter will be another 500cr. A million and plus meters will be deploying as I stated. So total will be 35. 3600.
Garvit Goyal
Got it. Got it. And secondly on the data center like you earlier guided Chennai data center was expected to be by March 25. And similarly Mumbai was to start construction in April and was expected to be commissioned by August 25th. But while you mentioned about Chennai, can you please update on why Mumbai data center is getting delayed now? And further, can you also confirm like earlier we were speaking about revenue generation from Chennai plant, Chennai data center, particularly from Q2 this year. Now that timeline is intact or not?
Padam Prakash Gupta
Ankit, would you like to answer?
Ankit Saraiya
Yes. Yeah. So firstly we are on the. We do expect to start generating revenue in Chennai from Q2 this year. And so that is pretty much expected. But Mumbai never got delayed. Because Mumbai was never within our plans earlier. We have very recently got the possession of location in Mumbai through Railtel only about you can say three weeks back. And we have almost completed the civil work over there. And we are in line to commission our Mumbai data center by November. But it was something new that came up to us. It was not a planned location.
Garvit Goyal
Okay, got it. Thank you very much. I don’t make the team. Thank you. And all the best.
operator
Thank you. We take the next question from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Hello.
Padam Prakash Gupta
Yes, you are welcome Deepak.
Deepak Poddar
Yeah. Yeah. Thank you very much sir for this opportunity. So just I wanted to understand, I mean in terms of from data center what sort of revenue we are targeting for this year and next year. Year FY26 and FY27. And what sort of margin we can expect in data center.
Padam Prakash Gupta
You can take, you know, conservatively let me put it. Our this year target will be about 100cr and next year target will be at least 300 to 350cr.
Deepak Poddar
300 to 350cr and. And what sort of margin we can see here.
Padam Prakash Gupta
Generally a beta is very high in these projects. Say you can take around 80%.
Deepak Poddar
80%.
Padam Prakash Gupta
Yeah. Yeah.
Deepak Poddar
Okay. And the revenue that you have said in terms of 3500 and 4500. This includes the data center or is it over and above this?
Padam Prakash Gupta
You see, this year we have not included. That is why 35 or 36 debate remained as you have. You must have heard of your colleague. And next year it includes up to three days.
Deepak Poddar
Okay, understood. So for next year your FY27, your margins will be. You will see a big jump in your margin. Right? Because of this data center.
Padam Prakash Gupta
Absolutely. It should be. That is a. That is why I said which differentiate us from the other TND players.
Deepak Poddar
Correct. And what is the general EPC margin range you look at? I mean for this 14, 15% is what generally margin.
Padam Prakash Gupta
1415 is assured. Rather it should be at least better by under notches hundred bits over last year. And commodities have time being cooled down. But it depends on trump and tariffs.
Deepak Poddar
We are talking about margin in EPC, right? 15 to 16%.
Padam Prakash Gupta
Yeah, yeah. But it’s all commodity pricing. Supply chain is under pressure. A lot of exports are happening on the supply equipment down and export prices are better to the manufacturers than domestic market prices. So all type of challenges are there. But nevertheless our efficient and productivity will stand us out.
Deepak Poddar
Fair enough. I got it. That’s very clear, sir. I mean that’s very helpful also. All the very best to you. Thank you, sir.
operator
Thank you. We take the next question from the line of Vikram Datwani from Nuwamba Institutional Equities. Please go ahead.
Vikram Datwani
Thank you for the opportunity and congratulations. On a good set of numbers. Two questions from my side. So could you please give us your expectation of consolidated EBITDA margin for the next two years considering data centers will be revenue accretive. So how much would that impact your margins positively? That is my first question. And my second question is on the FY27 EPS guidance. Just wanted to reconcile that 75 rupee figure. Would that also include any monetization of assets or any arbitration awards that you are expecting? Or would that be only from business and monetization will be over and above this figure.
Padam Prakash Gupta
Firstly, you see Data center is a new subject to us and ability to set up. We have enjoyed. We. We have a great marketing team now. But the numbers we will be yet to be experienced to be honest. So we cannot say the EBITDA as a console. But overall you can say as EBITDA is experienced at 20% should continue on overall basis at the company level. Whether it comes out of treasury will come down and Data center may add more to it. But definitely we have not considered any Monetization that will be over and above this in any case but there are not great disputes we are carrying in our company with the clients but something is often a way of life I will say that does not impact much financially but there may be a significant collection out of the discontinued business so that will be over and above this like it has happened in last year also the EPS of 4 rupee is happening out of the discontinued business so we are yet to get some more money from Sydney.
Vikram Datwani
Got it sir. Thank you.
operator
Thank you. We take the next question from the line of Samarth Khandelwal from ICICI Securities. Please go ahead.
Samarth Khandelwal
Thank you for this opportunity sir. Congratulations on a strong quarter Sir I just wanted to understand when we say 1 megawatt of a data center so. So 1 megawatt on 100% capacity generation we say 8.7 million units of kilowatt hours of electricity would be generated so in how much time does a 1 megawatt like what would be the energy cost for a 1 megawatt data center?
Padam Prakash Gupta
Firstly you see these are energy consumptive solutions not generative. So. So please correct it and when we talk of the revenue generally power cost is a pass through cost Here what we talk is only a lease rental of the facility provided to the user.
Samarth Khandelwal
Yes. Yes sir I understood that is why 8 crore per annum was. I just wanted to understand energy cost.
Padam Prakash Gupta
Energy is a pass through we don’t. We may make some money but we don’t take it as a part of it. Crore that is over and above. Can you elaborate more to it?
Ankit Saraiya
Yeah sure. Since. So when. So in terms of top line or expense we do not consider energy as a revenue or an expense because it’s largely a pass through to the customer at the cost so when we talk about a top line of 8 to 10 crore per megawatt it is largely out of lease rental. It doesn’t include energy and neither would be expenses would include energy.
Samarth Khandelwal
Thank you. Thank you sir.
operator
Thank you. We take the next question from the line of Prathamesh Sawant from Mire Asset Capital Markets. Please go ahead.
Prathamesh Sawant
Thank you for the opportunity sir Just wanted to understand if you can throw more light on the smart meter business so what kind of capex outlay are we seeing over here? How has our execution been so far and you know the outlook for the current year?
Padam Prakash Gupta
No, it is. I will say that we are conservating and our engagement is very nominal As I told you earlier we are having presence of no more than 5% in this segment by till date we have completion 7 meter out of a concession received for 2 and a half million meters by earth. And the deadline of the schedule is to complete by September 26th. In 2526 we are targeting to do a million meters more. So we are on track. On an average we do about 400 meters in different pockets. And they are fairly in cost control.
Prathamesh Sawant
Okay. Okay. So answer. How are we funding this project? Like any thing of. Because it is capex intensive. So how do we plan to fund it?
Padam Prakash Gupta
You see, we are funding internally number one, from our own resources. As I told you, we have already invested about 400cr in this. And another outgo this year will be about 500cr on this activity. So we have sufficient accruals. It is out of internal accruals. You can say we will be able to take care time being. And once these schemes are complete and going we may like to seek a exit, you know, at that time.
Prathamesh Sawant
Okay. Okay. So we won’t be raising any debt for this sir because…
Padam Prakash Gupta
We don’t want to raise any debt. We’ll be monetizing straight away.
Prathamesh Sawant
Okay. Okay. And we are expecting 15 IRR on this project as you mentioned.
Padam Prakash Gupta
Maybe more.
Prathamesh Sawant
Okay. And sir, like few falls back you had mentioned about the Mumbai data center. So which was like the center somewhere near St. Regis. So just any update on that?
Padam Prakash Gupta
Ankit, can you…
Ankit Saraiya
Yeah, as I mentioned that we’ve been handed over that location only about three weeks back. And we started the construction activities over there. The civil work is almost coming to conclusion. And we’ll hopefully commission at least 400 kilowatt of capacity over there by November 25th.
Prathamesh Sawant
Just one last question to you. So if we look at data center per se as a separate entity. So what will be the line item below the ebitda? Like how do we see the depreciation and the interest cost to that?
Padam Prakash Gupta
They are all internally funded. So as of now, so there is no interest cost per se. But definitely there will be depreciation as per the norms.
Prathamesh Sawant
Okay. Okay. Thank you.
operator
Thank you. We take ladies and gentlemen in order to ensure that the management is able to address questions from from all participants. Please limit your questions to two per participant. We take the next question from the line of Ravi Naredi from Naredi Investments. Please go ahead.
Ravi Naredi
Thank you Guptaji. To give me opportunity. Sir, we are awaiting investor presentation. As you are nice promoter. So we thought you give maximum disclosure. But we disappoint on this part. First of all congratulation for ever highest. Top line and bottom line in history of Company, sir, capex plus investment plan. In next two to three years in smart meter data center or small edge data center. What will be our capex?
Padam Prakash Gupta
This for the current year. We have already given in my presentation that this year we plan to invest about 1250 CRS which will comprise of 500cr of meters and 500cr in data centers and another 250 in our TBCB projects. Similarly going forward over the five years we have already said we’ll be investing about 10000cr with a larger 80% belonging to data centers. Maybe you did not hear me. In my presentation we said by 2030 we’ll be doing 10,000 cr of capex and 80% will be on data centers by and large. And we intend completing about 250megawatt by then.
Including edge and hyperscale. And another, you can say 1,000 in meters and thousand in TV CBS. But depending on opportunity this may change here and there. But as of now this is a program with the company.
Ravi Naredi
Sir, the company is now so big we want to meet personally to you. So is it available? Are you in Kolkata or Gurgaon?
Padam Prakash Gupta
Sir, we are in both the places for data center and smart meter. You are welcoming Office Ankit Singh. It’s there. And I am in Kolkata. You are welcome in both the places.
Ravi Naredi
Thank you very much. Thank you very much.
operator
Thank you. We take the next question from the line of Shaz Gatani from SG Securities. Please go ahead.
Shreyansh Gattani
Good afternoon sir. I had a couple of questions. So one was in the EPC you mentioned in your opening remarks that to execute in the compressed timelines, you know, you’re getting like additional incentives from customers. So what exactly are we seeing? Is that in terms of like better working capital, like better pay receivables or is it like additional margin that we are getting? If you could just give some color on that.
Padam Prakash Gupta
You see, apart from all these benefits out of productivity or efficiency.
Shreyansh Gattani
Hello.
operator
Please stay connected while we rejoin the management. Hello everyone. Thank you for waiting. We have the management line connected with us.
Padam Prakash Gupta
Yeah, sorry dear, there was a disruption.
Shreyansh Gattani
No problem, sir.
Padam Prakash Gupta
Yeah. Can you repeat your question, sir?
Shreyansh Gattani
Yeah, so. So my question was you mentioned new opening remarks that you’re getting some additional incentives for executing in the compressed timeline. So just wanted to get some color on that. Like whether it’s like, you know, better receivables that you’ll be getting or you know, is it going to be like in, in terms of higher margins as such?
Padam Prakash Gupta
No, it. It’s a incentive. Is the additional payout over and above the contracted price, 5% of the contract value. But we account it in our books only as and when receipts.
Shreyansh Gattani
Got it. Got it. So, so would that mean like we would see higher margins for this financial year because of this incentive?
Padam Prakash Gupta
Yeah, obviously if it happens, yes. For that portion of the top five.
Shreyansh Gattani
Got it, got it. The second question is on the data center side. So just wanted to understand the customer onboarding and customer acquisition cycle. So how long does it take like once our data center is ready, like if we have a customer agreement sign, like for them to get onboarded and you know, for us to start generating revenues. So just wanted to understand the whole process.
Ankit Saraiya
Once we’ve onboarded a customer, it can take anywhere between two to three months for them to move into the data center and for us to start generating revenue against that contract.
Shreyansh Gattani
Okay, so is there any hardware changes that need to be done or …
Ankit Saraiya
It is just, it is just their own timeline for migrating the equipment to our data center and stabilizing them and also to provision power for their requirement.
Shreyansh Gattani
Got it, got it. So for the Kolkata data center like for Chennai, we had to, I, you know, I remember like, you know last year also we mentioned that we are trying to get customers but like eventually we ended up, you know, waiting until the end of like the completion and now like even after we commission it’ll take like two months. So is that something that we are looking to change or is that how the industry is operating? Like we wait until the whole data center is ready for us to, you know, start gathering customers.
Ankit Saraiya
So you see in this industry it’s difficult to onboard customers unless you are reaching completion of a data center because with the given options our customer is always more comfortable moving into a commission data center which is readily available. And most of the customers come out with their requirements only about three to four months in advance of their actual need. So for that very reason most of the time these activities start towards completion of the project and go on for at least six months before the capacity is truly leased out.
Shreyansh Gattani
Understood. So just last question.
operator
I am so sorry to interrupt but may we request that you rejoin the queue for follow up questions.
Shreyansh Gattani
Thank you.
operator
Thank you. Next question is from the line of Shreya Gandhi from CR Kothari Stockbroking. Please go ahead.
Shrey Gandhi
Thank you for the opportunity and congratulations on a great set of numbers. My question is regarding the CAPEX outlay which you mentioned. 10,000 cr in next 5 years. So how do you plan to fund. At CAPEX and how much time frame. Are we going to Looking at the raising fundraising part?
Padam Prakash Gupta
Presently we are planning to do it all out of internal accruals and cash available with us by and large. And also it will be supplemented by monetization of the completed assets. To begin with TVCB followed with smart meters. But data center we like to hold on for a while and maybe a bit of a debt in data center if ultimately called for at the HPV level.
Shrey Gandhi
Okay, and another question is on FZD and smart meter side. Are we facing any slowdown in order. Intake in HCD and what is the. Competitive landscape looking like in smart meters? Because it is a clustered segment I think so what is your take on it?
Padam Prakash Gupta
As I told you, probably we are one of the smallest players in this segment with the exposure of only 2 and a half million meters. Among you can say about 12, 13 million meters in execution by in the market maybe not 10 missed 100 million meters. To my mind it execution by now. And we’ll continue to focus only in the pockets where we are good to deliver time bound and also able to deal with the utility properly.
So we are not looking for a business ultimately more than another two and a half million spread over next four to five years years. So overall book size may be about 5 million meters by 20, 30 or 28 or complete of the scheme.
Shrey Gandhi
Okay, and on FCD side is there any slowdown in the order intake? Yeah, because of regulatory.
Padam Prakash Gupta
Regulatory was there government was bit confused because the capex involved in setting up these solutions is very high. It’s almost 1cr for megawatt. So that was a huge deterrent to the government. Probably now government has reached it and on selective basis they want to divide this comply this requirements on emissions on SO2 or NO2.
So the revised target starts from 27 onwards and as we all know the generating capacity majority generating capacity is in private hands. So obviously the call has to be taken by SCBS and private because the capacity lot of capacity has happened in already in the central sector. Additionally, I will say that the whatever new generation capacity is coming in market 70, 80 gigawatt it is all with FGD only it is not without FGD at the green field level itself. So we are hopeful of this market to continue at least for next 10 years years but in its own proportion.
Shrey Gandhi
Okay, okay, got it. And another question is regarding the depreciation for data center. You said it will be based on industry norms. So what will be the percentage if you can share the terms of gross look or maybe for a megawatt kind of thing.
Padam Prakash Gupta
I think we have yet to discover that numbers. We will deep dive and find out yet. We are not ready with this number to speak because it will depend on the age of technology more than the asset. How you value it.
Shrey Gandhi
Okay, got it. Thank you so much.
operator
Thank you. We take the next question from the line of. From Indira Securities. Please go ahead.
Spasht Sharma
Hello. Am I audible?
Padam Prakash Gupta
Yeah.
Spasht Sharma
So my question is regarding the data center part. In the last quarter you said that. You are going to use an. Oh, hello?
Padam Prakash Gupta
Yeah, we are hearing you, sir.
Spasht Sharma
So in the last quarter you said. That we are going to use an OPEX model for the data center part. And the current guidance that you have about the margin. I’m quite confused. Can you give some light on it?
Padam Prakash Gupta
Ankit, have you understood the question?
Ankit Saraiya
No, your voice wasn’t clear. I couldn’t get the question.
Spasht Sharma
Okay. In the last quarter you said that you are going to use an OPEX model for the data center and with the current EBITDA margins that you have given, it is quite confusing to understand how he will be generating his equity. [Ends Abruptly]