Wardwizard Innovations & Mobility Ltd (538970) Q4 FY23 Earnings Concall Transcript

Wardwizard Innovations & Mobility Ltd (BSE:538970) Q4 FY23 Earnings Concall dated May. 12, 2023.

Corporate Participants:

Deepak Doshi — Chief Financial Officer

Yatin Gupte — Chairman & Managing Director

Analysts:

Vastupal Shah — Kirin Advisors — Analyst

Unidentified Participant — — Analyst

Gaurav Mehta — Private Investor — Analyst

Amit Singh — Banyan Tree Capital — Analyst

Aman Vishwakarma — RoboCapital — Analyst

Himani Oban — Suraj Enterprises — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Wardwizard Innovations & Mobility Limited Q4 FY ’23 Earnings Conference Call hosted by Kirin Advisors. [Operator Instructions]

I now hand the conference over to Mr. Vastupal Shah from Kirin Advisors. Thank you, and over to you.

Vastupal Shah — Kirin Advisors — Analyst

Thank you. Good afternoon, everyone. On behalf of Kirin Advisors, I welcome you all to the conference call of Wardwizard Innovations & Mobility Limited. And this is the first conference call of the Company. There will be a brief introduction about the Company and industry, followed by financial performance and later there will be a Q&A session.

Now, I would like to welcome the management team. Mr. Yatin Gupte, Chairman and Managing Director of the Company; Mr. Deepak Doshi, Chief Financial Officer of the Company; and Ms. Jaya Bhardwaj, Company Secretary and Compliance Officer of the Company.

Now, I would like to hand over the call to Mr. Deepak Doshi for the opening remarks. Mr. Deepak, over to you.

Deepak Doshi — Chief Financial Officer

Yes. Thank you. Good afternoon, everyone. Hope everyone is safe. This is our first conference call connecting you all. So I welcome you all to the call. I would first like to brief you all about the Company. Wardwizard Innovations & Mobility Limited is one of the leading auto manufacturing companies in the electric vehicle, EV, segment. We sell EVs under the brand name Joy bike. The Company has state-of-the-art manufacturing facility in Vadodara, Gujarat and deliveries across the country. The current capacity is of 4,00,000 units electric two-wheelers per annum on a two-shift basis. The Company has footprints in more than 35-plus major cities across India. The Company currently has a network comprising 550-plus dealers, super-dealers spread across India. Has 25-plus Company-owned retail outlets and is planning to make inroads in newer states in this year.

The Company is the first entity to get listed on BSE with the core business of electric vehicle manufacturing. The Company first introduced electric bicycle in 2016, and later introduced low-speed e-vehicles like Gen Next, Glob, Wolf and Monster and high-speed e-vehicles like Wolf Plus, Gen Next Plus, Wolf Eco and Gent Next Eco and four bikes in high-speed category. Other developments which happened during the year, the Company expands global footprints, partners with first-ever dealership in Nepal. The Company set-up global research and development headquarters in Singapore. Started operations of in-house battery assembly line with capacity of 1 gigahertz per year. Recently integrated Dreamz EV World distributor showroom situated at Mangalam Radiance Airport Plaza in Jaipur, Rajasthan covering an area of 3,500 square feet. The facility is fully equipped with the comprehensive sales and service facility, enabling the brand to extend its reach in the region.

Now, let me brief you all about EV ancillary cluster by Wardwizard Innovations & Mobility Limited. The Company jointly with its promoters and promoters group has acquired 4 million square feet of land to develop India’s first-ever EV ancillary cluster near the newly inaugurated global headquarters in Vadodara, Gujarat. About 20 major EV parts or components will be manufactured in the Wardwizard EV Ancillary Cluster. The Company has signed an MOU with Singapore-based Sunkonnect for R&D and identification of potential partners, as well as to develop the roadmap to setup the 1 gigahertz cell production plant at Wardwizard Electric Vehicle Ancillary Cluster in Vadodara.

Let me discuss about the rise of EV industry in India. Electric vehicles are in great demand. We are seeing good penetration in India. According to Vahan Dashboard data, January to December 2022 electric vehicle sales achieved a landmark milestone of over 1 million units in calendar year 2022. Electric vehicles holding all categories were 10,54,938 units. According to Vahan Dashboard data, high-speed E two-wheelers registered a massive rise 291% of 6,69,845 units in 2022 over 2021. Three-wheeler sales were at 3,14,561 units registering a growth of 114% Y-o-Y. These are massive growth numbers, indicating a high-level EV penetration in India.

Now let me give you a brief about our new launches and marketing and branding campaigns led by us. Wardwizard Innovations & Mobility Limited is highly focused on its growth strategies. It has recently launched hybrid electric scooter MIHOS with advanced technology and has entered into electric three-wheelers vertical by launching more spacious Joy e-rik in the passenger e-alpha category. The MIHOS electric scooter priced at INR1,35,000 and the Joy e-rik three-wheeler priced at INR3,40,000. The Company has unveiled the concept of its electric motorcycle Rockefeller at the expo. The Company is planning its launch by the end of financial year ’24.

We are not only focused on product launches, but equally focused aggressively on sales and branding. As an aggressive market strategy, the Company has onboarded Mr. Saif Ali Khan and Mrs. Kareena Kpoor Khan as the brand ambassadors to promote EV sales. The Company rolled out special festive offers on its range of electric — selected electric scooters on the operation of Holi and International Women’s Day. The Company has announced a special discount of up to INR12,000 along with an RTO and insurance on its selected scooters until March 31st, 2023. Joy e-bike becomes the official EV partner of the 7th edition of Economic Times Global Business Summit 2023. Joy e-bike to be the powered partner for Dadasaheb Phalke International Film Festival Awards 2023. The Company strengthens its relationship with cricket in first to become the title Joy bike powered by sponsor of India tour of Ireland 2022. The Company on the mission to spread this launches and new brand campaign Bharat Ka Joy. The Company displays its entire range of electric two-wheelers at EV India 2022. The Company the spread its range of electric two-wheelers at India Auto Show 3.0, powering the green mobility initiative and further at EV Expo Bangalore 2022 and EV Expo Kolkata 2022. So you see we are equally focused on our branding and marketing activities.

Coming to the number of vehicles sold during the financial year 2023. The Company sold 36,500 two-wheelers, rising market penetration, new launches and aggressive marketing strategies will enable the Company to create higher market share of the rising EV market.

Now, let me give you the result highlights. Q4 financial year ’23 highlights standalone. Revenues at INR50.76 crores, up by 37.94%. EBITDA at INR4.83 crores, up by 20.43%. EBITDA margin improved to 9.52% and PAT at INR1.4 crores. Financial year ’23 highlights standalone, revenues at INR239.29 crores, up by INR29.28 crore. EBITDA at INR19.57 crores, up by 35.17%. EBITDA margin at 8.18%. Net profit at INR9.45 crores, up by 10.59%.

Q4 financial year ’23 highlights consolidated: Revenues at INR50.76 crore. EBITDA at INR4.53 crores. EBITDA margin at 8.92%. PAT at INR0.93 crores. Financial year 23 highlights consolidated: Revenues at INR239.29 crore. EBITDA at INR18.98 crores. EBITDA margin at 7.93%. Net profit at INR8.85 crore. Thank you all.

Questions and Answers:

Operator

Thank you. [Operator Instructions] Our first question comes from the line of Deepika Chadda [Phonetic] from Cogen Research. Please go ahead.

Unidentified Participant — — Analyst

Hello? Am I audible?

Operator

Yes, Deepika. Go ahead.

Unidentified Participant — — Analyst

First of all, congratulations for good set of numbers. Sir, I wanted to know the efforts on battery manufacturing. Hello?

Yatin Gupte — Chairman & Managing Director

Hello.

Unidentified Participant — — Analyst

Yes, sir. I wanted to know your efforts on battery manufacturing.

Yatin Gupte — Chairman & Managing Director

You want to know about?

Unidentified Participant — — Analyst

Yeah, yeah, first on battery manufacturing.

Yatin Gupte — Chairman & Managing Director

So good afternoon all. This is Yatin Gupte. So, as — last year as we have decided that we would be venturing into battery pack assembling and then later on lithium-ion cell manufacturing. So current strategy is that from mid of January, we have started our battery assembling. So we are importing cells and good quality cells. And then we are currently assembling them over here. And this particular batteries are I mean utilized in-house currently. So the project is already on. It has been kick started in mid of January.

Unidentified Participant — — Analyst

What will be the capacity?

Yatin Gupte — Chairman & Managing Director

So, currently the capacity which we are running is 3,000 battery packs per month.

Unidentified Participant — — Analyst

Okay. Also what was the capex for FY ’23?

Yatin Gupte — Chairman & Managing Director

FY ’23 capex, Deepak?

Deepak Doshi — Chief Financial Officer

Capex for FY ’23 was INR23.25 crore.

Unidentified Participant — — Analyst

Okay. And what is planned capex for ’24-’25?

Deepak Doshi — Chief Financial Officer

It will between INR100 crore to INR125 crore.

Unidentified Participant — — Analyst

Okay. How much on battery plants?

Yatin Gupte — Chairman & Managing Director

So battery plant, currently what we are doing is, we have started assembling the battery packs and the investment would be somewhere around, say, INR80 crores to INR85 crores on this.

Unidentified Participant — — Analyst

Okay. Also there is a difference between vehicles reported and what you release from March sales. Can you please explain?

Yatin Gupte — Chairman & Managing Director

Deepak?

Deepak Doshi — Chief Financial Officer

Yes, the release in the month of the March was for the B2B transaction and the vehicles which was showing in the Vahan portal or other portals are the which are sold to the customer directly, B2C transactions. So every month we release the data, which we are selling our vehicles, our goods to the dealers B2B transaction and the all the numbers, which are showing on the Vahan portal it is for the B2C transaction. So there is a difference because a this reason.

Unidentified Participant — — Analyst

Okay. Okay, sir. Any partners in our EV cluster?

Yatin Gupte — Chairman & Managing Director

So we have received total six LOIs as of now till-date. So these LOIs are more into motor manufacturing, design — designs of speedometers and chargers. There are also LOIs for the new circuits, which are being designed. So total six LOIs we have reviewed for — we have already received for the cluster.

Unidentified Participant — — Analyst

Okay. Okay, sir. Thank you.

Yatin Gupte — Chairman & Managing Director

Thank you.

Operator

Thank you. Our next question comes from the line of Yashwanti [Phonetic] Kojin Finvest. Please go ahead.

Unidentified Participant — — Analyst

Yeah. Thank you for the opportunity, sir. Sir, my [Technical Issues] EV cluster. Sir just I understand like how much you spend [Indecipherable] EV cluster. You have you said you have around five to six letter of intent. So what kind of a manufacturing is going to happen over, sir, those are first question. More detail on the EV cluster.

Yatin Gupte — Chairman & Managing Director

The EV cluster, the plans which we are having is, we would be manufacturing motors, controllers, I mean, chargers, plastic components. These are the major components which would be manufactured we would be venturing into JVs with certain partners on this. And we — as the LOIs have been already signed, the project is bit delayed. The reason — major reason of the delay was there were certain formalities, which are yet to be finalized with government. So recently we have received certain clearances and I am hopeful that this EV Cluster work would be started in next 30 to 35 days.

Unidentified Participant — — Analyst

And what was the investment in it?

Yatin Gupte — Chairman & Managing Director

The investment, we are providing them infrastructure and the land, and the major investment is the innovations and the machineries, which they would be investing on. So our investment as Wardwizard Innovations & Mobility Limited would be the land and the infrastructure, which they require.

Unidentified Participant — — Analyst

And what is the quantum of that investment?

Yatin Gupte — Chairman & Managing Director

In this first year, it may go up to INR35 crores to INR40 crores.

Unidentified Participant — — Analyst

And in the next term, next two, three years?

Yatin Gupte — Chairman & Managing Director

It will increase, because these are the LOIs — six LOIs, about which I’m talking about. But in next year, again, it depends on the partners, which we are inviting, it depends on their requirements. So it is difficult for me to project that thing as of now.

Unidentified Participant — — Analyst

Okay, sir. Sir, my next question is on the batteries. So normally, what is the life of the battery for these vehicles, which we’re manufacturing.

Yatin Gupte — Chairman & Managing Director

So currently, the life of a battery, which we are — which we were procuring from Indian partners, it was somewhere around 900 to 1,100 charging cycles. But now, where our R&D has involved into Singapore company, this would be increased to 2,000 charging cycles. So it will be almost double.

Unidentified Participant — — Analyst

Okay. Sir, and you mentioned that you are already aggressive on the marketing and the branding. Sir, normally, what is the percentage of CSG spend on your branding?

Yatin Gupte — Chairman & Managing Director

Currently, the spend on the branding, it would be somewhere around 7% to 8%.

Unidentified Participant — — Analyst

Sir, and there’s a little request to you. Like you mentioned in your report that — in your segmental report, it’s segment A, segment B and segment C, it’s a little bit difficult for us to understand what it is. So next time onwards, please clarify on those segments, that would be of really great help.

Yatin Gupte — Chairman & Managing Director

Sure. Deepak will note this.

Deepak Doshi — Chief Financial Officer

Yes. So, during the second quarter, we have sold some goods in our Vyom segment worth INR14.54 lakhs. So in that particular quarter only we have done a transaction of our Vyom segment and that segment consists of the electronic goods. So during the year that only transaction happened in that particular quarter. Other than that we have fully focused on Joy bike products, the e-vehicle segment only.

Unidentified Participant — — Analyst

Okay. Sir, how is the response you received for the MIHOS and of the e-rik the two and you can see.

Yatin Gupte — Chairman & Managing Director

So MIHOS response is tremendous. The bookings which we have received, the formal bookings, it is somewhere around 22,000. The deliveries has recently started and that’s the major reason why we were not able to declare our April sales figures, which we’ll be doing in next one or two days. But, the experience with MIHOS is good and market has responded this vehicle and they have liked this vehicle a lot.

Unidentified Participant — — Analyst

Okay. And this is for Gujarat itself or it is a —

Yatin Gupte — Chairman & Managing Director

No, no, this is all India. Currently we are in 26 states in Indian market.

Unidentified Participant — — Analyst

Okay. Okay. Sir, would it be possible for you to declare this number in every month, like all other [Speech Overlap]

Yatin Gupte — Chairman & Managing Director

Yeah, yeah, we are doing it every month. Only this month, that is the last month it has got delayed. So the figures are getting declared on BSE every first week of every month.

Unidentified Participant — — Analyst

Okay. So, sir, what is your target volumes for the two-wheeler and three-wheeler?

Yatin Gupte — Chairman & Managing Director

The target which we have taken is 1,00,000 units, which we would be selling in two-wheelers. And for three-wheelers, it would be somewhere around 15,000.

Unidentified Participant — — Analyst

Sir, a few more questions. I’ll come back in the queue. Thank you so much, sir.

Yatin Gupte — Chairman & Managing Director

Yeah.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Gaurav Mehta, an investor. Please go-ahead.

Gaurav Mehta — Private Investor — Analyst

Hello. Good afternoon, sir. Am I audible?

Yatin Gupte — Chairman & Managing Director

Good afternoon. Yeah, you’re audible.

Gaurav Mehta — Private Investor — Analyst

Sir, what is the average charging time of our vehicle and what are the different competitors from a charging time?

Yatin Gupte — Chairman & Managing Director

Currently the charging time is somewhere around four hours to five hours. And we are at par at our competition.

Gaurav Mehta — Private Investor — Analyst

Okay.

Operator

Mr. Mehta, you there? Since there is no response from Mr. Mehta, we move on to our next question, which is from the line of Amit Singh from Banyan Tree Capital. Please go ahead.

Amit Singh — Banyan Tree Capital — Analyst

Yeah. Hi, Yatin, hi Deepak. In fact, there are couple of queries which I just wanted to understand. I’ll just work it out, it’s like one, two, three, four. First one being what’s the competitive advantage Joy e-bike will be having compared to the other EV bike, because EV bike segment is kind of already being flooded with so many different brands now. So it becomes difficult for the end-user and customer to define which to take which not to take. So how we are going to kind of differentiate our product vis-a-vis the other competitors’ product. This is the first query.

The second one being, will the EV Cluster Park of yours is going to help you guys reducing cost of your EV production per bike, which is currently probably which you are selling out for 135 or 140, so is it going to help you out in reducing the production cost and then passing on the same benefit to the end users?

Third query being, how much investment is happening in the research and innovation side of yours in the Singapore office or wherever it is happening. And what kind of returns you’re expecting out of it in terms of that how much do you think if it has to be kind of converted into value-wise, what is the kind of benefit you are thinking that will be deriving out of it.

And the fourth query being — fourth and the last being, the current expansion plan, what you guys have just mentioned about, how exactly it’s going to be funded? It is going to be an equity infusion from the promoters or from the promoters group or is it going to be an expansion based on the debt? Yeah, that’s it.

Yatin Gupte — Chairman & Managing Director

Yeah. Hi. So your first question was competitive advantage. So the advantage currently which we we are exploring is the — now, currently we are having two vehicles ready, which are into subsidy. So we would — we have started our process to certify them into same thing, so in current scenario, we would be the only company who can be eligible to get same two subsidy. So this is the most important advantage.

Secondly, as you rightly said, there are many players, small players who are there in EV sector right now. But frankly from last two, three months what I’m observing is there are certain policy changes, which has been made by Indian government and they are very much transparent and again rigid. So what we have seen in last couple of months is there are many small players who are vanishing. They are not able to — they are not able to comply to the new policies, which have been placed through ARAI and ICAT. So this is the second advantage, because our R&D team which is working in Singapore, we are getting a good amount of help from them due to which we have been able to — we are ready with phase one and phase two batteries. So I can proudly say that we might be the only player who are ready with phase one and phase two batteries. So this is answer to your first question.

Second question was, yeah, EV cluster, how would it help in reduction of the cost. So EV closer, the idea was reducing the time in the supply, because our major dependency was on imports. So we want that our supply chain should be very clear and very simple and we didn’t wanted any dependency on imports. So this help to reduce the timeframe and also the cost. As far as our EV, these are concerned as we did our reverse engineering, we came to know that out of 98 components, which we use for EV, there are 32 components, which we have localized, where we are not importing. And this localized products are — the pricing of these products is lesser than the Chinese products and the margin is somewhere around 15% to 18%, which we are saving. So this EV cluster will help us in reduction of the cost of our vehicles significantly. And again, this would be, again, passed on to our distribution channel and customers.

Your third question was how we are doing with R&D in Singapore. Yeah, in Singapore, total investment which is required is somewhere around between INR10 crores to INR15 crores. And against this what benefit we would be getting the benefit visibility [Phonetic] is the chemistry, we would be working on chemistry of lithium and cell. So this team has already started their work in a very great way rather first breakthrough we got in mid of January, where we come up with a special cell, where we have found vendor in China. And this particular cell is the cell which we are importing currently from China and this is one of the great, what do you call, cost-reduction help which we have got. So currently we are taking imports from other people, the cost reduced is somewhere around 11% due to this R&D center in Singapore.

The last question was current financials. If we are targeting 1,00,000. So yeah parameter would be infusing some of the funds again there would — we are in process of raising debt. And we are also exploring foreign investment through ADR.

Amit Singh — Banyan Tree Capital — Analyst

Okay. Cool, guys. Thanks. Thanks. All the best.

Yatin Gupte — Chairman & Managing Director

Thank you.

Operator

Thank you. Our next question comes from Aman Vishwakarma with RoboCapital. Please go ahead.

Aman Vishwakarma — RoboCapital — Analyst

Yeah. Hello. Congrats on good numbers. Could you please just retouch upon the total manufacturing capacity that you guys have.

Yatin Gupte — Chairman & Managing Director

So manufacturing capacity currently is 4,50,000 vehicles per year.

Aman Vishwakarma — RoboCapital — Analyst

Okay. Sir, is that inclusive of both two-wheelers and three-wheelers?

Yatin Gupte — Chairman & Managing Director

No, it is only two-wheelers and for three-wheelers, it’s currently 3,000 rikshaws per month.

Aman Vishwakarma — RoboCapital — Analyst

Okay. 3,000 per month. Fair enough. Okay. That’s all from my end. Thank you.

Yatin Gupte — Chairman & Managing Director

Thank you.

Operator

Thank you. Our next question comes from the line of Himani Oban from Suraj Enterprises. Please go ahead.

Himani Oban — Suraj Enterprises — Analyst

Hello?

Yatin Gupte — Chairman & Managing Director

Yeah, please.

Himani Oban — Suraj Enterprises — Analyst

Hi. My question is, what is the bifurcation of sales for high-speed and low-speed vehicles?

Yatin Gupte — Chairman & Managing Director

So in last financial year, the bifurcation was we almost last year we had so majorly low-speed vehicles. We started with high-speed vehicles in late-December, but again bookings — we were started booking, but the sales was not much. So I think the bifurcation maybe somewhere around 90:10, that is 90% on low-speed and 10% to high-speed.

Himani Oban — Suraj Enterprises — Analyst

Okay. Okay. And how we are competing with the big players in high-speed segment?

Yatin Gupte — Chairman & Managing Director

Yeah. High-speed we have developed one vehicle, which we launched in Auto Expo that is MIHOS. So it is one of the best products which we can call. And I can foresee that there would be a minimum competition to this particular product.

Himani Oban — Suraj Enterprises — Analyst

Okay. And what is the average price of your vehicles?

Yatin Gupte — Chairman & Managing Director

You’re talking about MIHOS?

Himani Oban — Suraj Enterprises — Analyst

Yeah.

Yatin Gupte — Chairman & Managing Director

Yeah, MIHOS is INR1,35,000 ex-showroom.

Aman Vishwakarma — RoboCapital — Analyst

Okay. And what it will be outlook for the high-speed segment?

Yatin Gupte — Chairman & Managing Director

Yeah. Currently, we — our major focus is high-speed as compared to last year. As I said, our major sale for low-speed vehicle, but this year, our major concentration would be on high-speed vehicles. So I foresee that, next year, coming year, the ratio would be 80-20; 80 towards high-speed and 20 towards low-speed.

Himani Oban — Suraj Enterprises — Analyst

Okay. And what is your spend on the R&D and branding?

Yatin Gupte — Chairman & Managing Director

So currently, the budget which we have taken our R&D is somewhere it’s between 8% to 10%. It has been due to the selling on our R&D, of own development, and with demand cell.

Himani Oban — Suraj Enterprises — Analyst

Okay. Any new models lined-up?

Yatin Gupte — Chairman & Managing Director

Yeah. There are couple of good products, which have been lined-up and we will let you know soon in coming few days about it.

Himani Oban — Suraj Enterprises — Analyst

Okay. Okay. Thank you. That’s it from my side. All the very best.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Yashwanti with Kojin Finvest. Please go ahead.

Unidentified Participant — — Analyst

Yeah. Thanks for the opportunity once again, sir. Sir, EV market is EV vehicles where the demand is today. And anybody want so whereas if company something else the getting away depending and major latest from the Chinese because this younger Chinese then. So what is the strategy just be the player there is Company’s is this in the?

Yatin Gupte — Chairman & Managing Director

So, as I rightly mentioned just now, that we have launched one vehicle MIHOS and a rickshaw, which is zero input dependency products. So plastic components, moulds, the designs of that, motor technology, controller technology, we have developed this in last 18 months. And the reason of launching this particular vehicle was that we didn’t wanted any dependency on imports. If we are dependent on imports, the supply chain gets hampered. So this is the first product, which we have launched in two-wheelers and yes, we are expecting certain more releases in coming few months, where we would be — we will not be depending on any imports and [Indecipherable] can be smooth.

Unidentified Participant — — Analyst

Okay. Sir, how it will be play with the competitors, because the competitors are also coming up with the very cheap rates?

Yatin Gupte — Chairman & Managing Director

Yeah, you are talking about rates?

Unidentified Participant — — Analyst

No. I’m talking about the competition is [Technical Issues].

Yatin Gupte — Chairman & Managing Director

Yeah, yeah, that is a challenge, which we are facing currently, because north is bit on the higher side. I cannot say that it is on much higher side, it is a bit on the higher side. And the reason again is it is because we have developed certain vendors in India. Again, as volume increases, we will compete with the Chinese prices. This is what I can tell you.

Unidentified Participant — — Analyst

Okay. Sir, now you just mentioned MIHOS is a completely a domestic product, it is like a Make in India product. So are you attracting any subsidiaries on government?

Yatin Gupte — Chairman & Managing Director

Yeah, currently we are not getting because that particular product is not yet been entered into to subsidy. But our efforts are going on. And I foresee that yes, government will be helping into this.

Unidentified Participant — — Analyst

Sir, how are your service, are they allocating nearby [Speech Overlap]

Yatin Gupte — Chairman & Managing Director

No, everything has been decentralized. It is decentralized. Yeah, so our all distributors have their own service center with them. And district-wise, we are located with service engineers.

Unidentified Participant — — Analyst

Okay. Now, charging facilities available in network?

Yatin Gupte — Chairman & Managing Director

No. Charging facilities, we are not working currently on developing charging infrastructure, rather we had made it very simple that you can charge it at your home or your office. So chargers are so simple that you can use a normal plug at your home, and it can be charged.

Unidentified Participant — — Analyst

And sir, there is normal an automobile, there is a financial facility that’s available. So, do you have any arrangement for the financing of this EV?

Yatin Gupte — Chairman & Managing Director

Yeah, we have 11 bankers onboard for financing of the two-wheelers.

Unidentified Participant — — Analyst

[Technical Issues]

Yatin Gupte — Chairman & Managing Director

There are many. HDFC is here, IDFC is there. Deepak, can you just name certain finances?

Deepak Doshi — Chief Financial Officer

Yes, IDFC as sir said, Bajaj Finance is there, Kotak Mahindra is there and other banks are there, BOB is there. So some of the names of our bankers which are onboarded.

Unidentified Participant — — Analyst

Sir, just wanted to understand is how the [Technical Issues] or how is it.

Yatin Gupte — Chairman & Managing Director

Yeah, no, all high-speed vehicles they are mandatorily to be registered on Vahan portal. Low-speed vehicles doesn’t get registered on Vahan portal.

Unidentified Participant — — Analyst

Sir, any reason for it?

Yatin Gupte — Chairman & Managing Director

Because it doesn’t require number plate or driving license, slow-sppeds.

Unidentified Participant — — Analyst

Okay. So [Technical Issues] and what percentage is high-speed as production.

Yatin Gupte — Chairman & Managing Director

Lastly, as I’ve said 90% was — sale was into low-speed vehicles and 10% was I think into high-speed. But in this current financial year, we have taken target that it would be 80-20; 80 towards high-speed and 20 towards low-speed.

Unidentified Participant — — Analyst

So, completed changed?

Yatin Gupte — Chairman & Managing Director

Yeah, it will be completely, because we have launched this particular vehicles in mid of December. So we have very recently ventured into high-speed. So now major concentration would be on high-speed vehicles.

Unidentified Participant — — Analyst

Okay. And do you expect any subsidies from the government coming up as —

Yatin Gupte — Chairman & Managing Director

We are working towards it.

Unidentified Participant — — Analyst

No, from the government?

Yatin Gupte — Chairman & Managing Director

Yeah, yeah, we are working towards it. So there are couple of subsidies which are there and we are working on it.

Unidentified Participant — — Analyst

Sir, my last bookkeeping question is what is your guidance on the margin?

Yatin Gupte — Chairman & Managing Director

Margins?

Unidentified Participant — — Analyst

Yeah.

Yatin Gupte — Chairman & Managing Director

Deepak?

Deepak Doshi — Chief Financial Officer

Yes. So our EBITDA margin, just one minute. Yes, EBITDA margin 7.84% in financial year ’21-’22. And it is increased to 8.18%. And net profit margin — sorry?

Unidentified Participant — — Analyst

I’m asking about the targe.

Deepak Doshi — Chief Financial Officer

8%. Yeah, from 8%, that’s the reason, as I said, the EV Cluster would be helping getting this to 12%. Well, it will take one or two years more.

Unidentified Participant — — Analyst

Next year you can expect a similar line of 8% and —

Deepak Doshi — Chief Financial Officer

Yeah, next year it may be 9% to 9.5%.

Unidentified Participant — — Analyst

Okay, sir. All the best to you. Thank you so much.

Yatin Gupte — Chairman & Managing Director

Thank you.

Operator

Our next question comes from the line of Aman Vishwakarma from RoboCapital. Please go ahead.

Aman Vishwakarma — RoboCapital — Analyst

Hi, again. So my question was on the Vyom Innovation. So how do you see that shaping up in the future, because I believe it’s a consumer durable business and pretty capital-intensive to ask me and the margins are low there. So how do you see that shaping up in the future?

Yatin Gupte — Chairman & Managing Director

Which product did you say?

Aman Vishwakarma — RoboCapital — Analyst

Vyom Innovations.

Yatin Gupte — Chairman & Managing Director

No, Vyom, we had discontinued it. So we will not be going into or concentrating into Vyom. It would be only Joy e-bikes that’s what we would be focusing on.

Aman Vishwakarma — RoboCapital — Analyst

Okay. Fair. That’s good enough. Yeah. Thanks. That’s all from my end.

Yatin Gupte — Chairman & Managing Director

We had already discontinued.

Aman Vishwakarma — RoboCapital — Analyst

Yeah.

Operator

Thank you. Our next question comes from the line of Deepika Chadda with Cogen Research. Please go ahead.

Unidentified Participant — — Analyst

Thank you again for the opportunity. Sir, I wanted to know the latest innovations in electric vehicle technology and how are they expected to impact the industry.

Yatin Gupte — Chairman & Managing Director

You’re talking about overall or you’re talking about —

Unidentified Participant — — Analyst

Overall.

Yatin Gupte — Chairman & Managing Director

So, see, there are many innovations which are happening in this particular industry on day-to-day business. It is not that it is happening monthly, quarterly, so there are many — every day there are certain innovations which have been coming in and we are trying to adapt to that. That’s the reason we have entered into Singapore market. There our access to these international Innovations is very easy. So in motor technology, it is getting — there are certain innovations which are coming; in battery, again, there are certain innovations which are happening. Lithium-ion cells, which are there. The complete dependency on lithium-ion is getting reduced day by day. So these are certain innovations which are happening and this would be benefited to EV industry on cost on the level of cost. So we are monitoring that and we are adapting or very aggressive in adapting this new technology.

Unidentified Participant — — Analyst

So, how are we placed in terms of new innovations against the industry and what will be our USP?

Yatin Gupte — Chairman & Managing Director

So, our USP would be more into on battery side, because it is a key component for an EV. And again, it has around, 30% to 35% it holds 30% to 35% of EV cost is of battery. So we are more focused on certainly engineering of battery pack and the cell chemistry. So here in coming few months, we will be getting certain good updates, where we would be reducing the cost of the battery pack.

Unidentified Participant — — Analyst

Okay. So, sir, I have heard lots of issues of EVs catching fire. Any cases with our vehicles?

Yatin Gupte — Chairman & Managing Director

No. So that’s where we have our expertise since last four to five years, there is no incidents which has happened. And that data does because of our quality check and the quality team which is placed with us.

Unidentified Participant — — Analyst

Okay. Great. Thank you so much, sir. All the best.

Yatin Gupte — Chairman & Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] Our next question comes from the line of Amit Singh from Banyan Tree Capital. Please go ahead.

Gaurav Mehta — Private Investor — Analyst

Hi, guys. Just a simple query. When do you guys plan to listed on NSE?

Yatin Gupte — Chairman & Managing Director

Yeah. So we had discussion about this thing. And it is in pipeline. I can only say this.

Amit Singh — Banyan Tree Capital — Analyst

Okay. Thanks.

Yatin Gupte — Chairman & Managing Director

Yeah.

Vastupal Shah — Kirin Advisors — Analyst

Hello? Can you hear me?

Operator

Yes, sir. Thank you.

Vastupal Shah — Kirin Advisors — Analyst

Yeah. So I think that was the last question. Thank you, everyone, for joining this conference call of Wardwizard Innovations & Mobility Limited. If there any queries, you can write us at research@kirinadvisors.com. Once more, many thanks to management team, Mr. Yatin, Deepak ji, Jaya ji, for joining the call and addressing the investors. Thank you.

Operator

[Operator Closing Remarks]