Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Ravi Naredi from Naredi Investments. Please go ahead.

Sir, my point is that, when we were having Rs. 1,400 crore cash, the Company desired to raise money through QIB amounting Rs. 250 crore. I believe that Company should take that first then raise the equity. So, what is your view on this because equity is always not cheaper than..

Any other question?

Rs. 1,500 crore L1 order, which you recently said in the last interview. So, what is the status at present? And you announced a lot of orders in this concall which we may receive in due course, so how the Company has capacity to perform them? These are my questions.

First of all, let me address your capacity question and then come to the finance and prudence of finance on this side. On the capacity side, Techno (Inaudible) 30:37 in building balance of plant, I would say, high -end application complexities as well as (Inaudible) 30:54 facilities like applicable in data centers and also distribution for smart meters. (Inaudible) 31:00, those were our two components, (Inaudible) 31:06 or earnings as a bottom , b ut we must do it . 31:22 (Inaudible) the Brownfield expansion packages from Powergrid (Inaudible) 31:28 We were always operating (Inaudible) 31.40. So we were almost executing 30 location projects of each with no more than Rs. 50 Cr, which presently we expect to raise it to Rs. 100 Cr and then to Rs. 150 Cr per location or maybe even Rs. 200 Cr but not working at any more than 15 to 16 locations because of the very size of the projects of 765 kV AIS and they are largest of the large in the country as a deployment. So, all these, within the same capability and capacity, we are able to ramp up the top line, number one. Number two, coming to the finance prudence, you see our Company has always been very prudent in utilizing cash and I trust ‘cash is king’ . It always brings multiple type of benefits like assurance of payment to our suppliers, procurement at competitive prices, your ability to fund your programs ongoing in the field in time and it is usually comfortable I will say. And you must have cash in the books always to take care of any contingency otherwise. So, I have been always a debt shy person and we trust we can earn easily 15%-18% on this money by multiple and different ways of deploying the same, which is not only meant for growth in the topline and resulting in higher working capital necessities, but also to fund the CAPEX model projects like our partnership with the developing transmission assets in TBCB or developing smart metering solutions and going forward we do expect that we can take up more projects in CAPEX model with the developers, thereby giving us a better bottomline demand. But definitely, you see the CAPEX planned over the next five, six years for us is no less than Rs. 25,000 Cr, if you see holistically. 250 megawatts of data cen ter will mean no less than Rs. 10,000 Cr as a CAPEX and also developing 10 million meters in CAPEX model will also mean Rs. 10,000 Cr. So, it is almost about Rs. 20,000 crore. Of course, we will take that, but we will be shy to go beyond that ratio of 1 is to 1. And we will also be continuously rolling over this CAPEX into exits additionally, so that all the time we must have a cash availability in the Company of no less than Rs. 1500 Cr to Rs. 2000 Cr to meet any contingency or any delays or any delay or payment as experienced, so that we are not vulnerable as we experienced in previous 10 years with fatality with a lot of generators. So, we want to make sure that companies continue to generate a reward of 15%, 18% on the equity, as well as keep companies financially healthy. Our target is that by 2030, if we have a topline of Rs. 5,000 Cr, my net worth also be known as that Rs. 5000 Cr. That is what we will achieve at a debt of no more than Rs. 5,000 Cr.

Thank you. The next question is from the line of Subhadip Mitra from Nuvama. Please go ahead. Subhadip Mitra: Firstly, many thanks for giving such a detailed explanation and your overview for the sector as well as for the Company. If I heard you correctly, I think you mentioned FY25 sales guidanc e of 2,500 crores and FY26 at 3,200 crores.

You’re right, perfectly right. Subhadip Mitra: And I think sir you also mentioned an EPS guidance of Rs. 35 in FY25 and Rs. 45 in FY26, did I hear that correct?

Yes, 26, 25, 26, absolutely right. Subhadip Mitra: This is immensely helpful. If you could also help us sir in terms of the EBITDA margin guidance that you have, I remember I think in the last call You had mentioned the range of around 13 %- 14%. I believe for the nine months of this year, you're already tracking 15%. So, would you be upping the EBITDA margin guidance as well?

No, sir. I think we will continue to be around 13%. And depending on commodity cycle because of the global forces as are very happening around us, I think we should be conservative, but it may improve. I think expecting 13% is fair. Subhadip Mitra: I understand. Would you see scope of the margins going up over the next two years give will you see scope of the margins going up over the next two years, given that you're getting larger ticket size orders? So, maybe there is some operating leverage or economies of scale that can flow?

So, it may happen, but to be conservative it is not good to factor because the very tariff bidding which happens in our country it puts a lot of pressure on the developed asset owners in terms of the tariff and their ability to pay out to EPCs are not that use that is constantly under pressure as I see, additionally we also experience today it's a suppliers market on equipment because of the ban on the large end equipment or major equipment forming part of the solutions because of the ban in use of Chinese equipment under DPIIT policies. So, all these are the challenges inbuilt in it. So, I will trust we need to experience the ground. Subhadip Mitra: I understand. Lastly, what we are hearing from various industry players including power grid is that while there is this huge pickup in terms of the plant transmission CAPEX, there is acute shortage of certain segments of equipment. For example, whether it is HVDC or it is high voltage transformers. Do you anticipate any such short-term paucity of equipment which can probably impact your execution on the substitution side?

So, this is what I shared with you just now, Mr. Mitra. That pressures are there in the marketplace but Techno's relationships with these very suppliers for the last three decades and having grown together and have been a trustworthy payment masters in this space. So, our respect is very used. And that helps us to, despite challenges, we do get our equipment in time from them by and large as for the requirement of the solution. And that's good, I will say. So, it's a time for companies like us to come forward. And you know, absorb more of the risks which we are best placed in the marketplace.

Thank you. And the next question is from the line of Venkata Subramaniam from Organic Capital. Please go ahead.

Couple of questions, sir. One, we had taken a few opportunistic orders overseas when the Indian markets didn't appeal to us. Are we kind of defocusing there and will we come out unscathed from that and water out of there sir?

Sir, I will say that we have do ne little overseas compared to many others in this space, number one. Number two, our TOGO assignment is complete, and we have already received completion certificates that project was funded by Exim Bank. We are still struggling to be out in Kabul, in Afghanistan, which are our comfort zone was that they are funded by World Bank and AD B. So, resolutions have to be made. A number of meetings have happened in Doha, and we are very confident. And secondly, these projects are part of CASA scheme. You know, it is not limited to Afghanistan only. So, they have to find solutions because three more countries around Afghanistan are entangled in it. But the good part is that we have nearly completed about 90% of the work in this project. So, it will be foolhardy for anybody, you know, not to complete the balance 10%-15% left in that place. So, project completion will happen and our involvement also is no more than six million dollars there, which is very little, I will say. But we are finding good traction now in the Middle East, because every country in the Middle East is very strongly focused on renewable power, like India, and climatically also so. So, we find good space to be part of in Saudi or Oman, or similar other countries. Let's see how it works out. But the domestic market is more hot than overseas also.

Secondly, a couple of conference calls ago, in answer to a question about organizational strength and then enhancing etc., we said we are in th e process of inducting and interviewing a lot of people etc. Are we getting the kind of talent that we need to achieve this kind of scale, Guptaji now?

Absolutely, sir. Because there are two things. Firstly, we have strengthened our daily office very strongly and my son is located there now , full time . I think it's been four years , Ankit who is driving all IT -laced power solutions, like data centers, smart meters, or digitization. And we have picked up very good people in that office. If next t ime you happen to be there, it's a team of now 100 strong people. If you happen to be there in Gurgaon, please visit our office. We welcome you and share our experiences with you. We are also transforming a lot, I can assure you. We understand growth bring s its own challenges and risks with it and as conservative we are, we want to be delivering this growth very successfully and prudently in all regards.

Lastly, sir, on this enabling resolution for QIP, knowing the Company and knowing you, I read a lot, you probably have spotted some opportunities. It probably will not be very futuristic. Do you want to give some broad color in terms of what this will entail, etc.? Do we have some specific assets that we are chasing? Because it can't be, anything that you build either on the data center side etc. will kind of turn itself over. You know, it won't be a continuing investment. A few you will build and in the typical style you probably will flip them over, e tc. So, if you take this kind of money with the kind of cash trail that we're sitting on, you probably have something in mind. Do you want to kind of give a broad picture to the market?

No, we have a program of CAPEX of almost about Rs. 2,000 Cr. to Rs. 2,500 Cr. per year now keeping the CAPEX model of the smart meter as well as data centers. So, the objective is to stay liquid enough and financially strong enough to meet these kind of CAPEX year-on-year either less by some debt not all debt but also you know if you are not able to get the exit for a year also, you can be under distress. So, we don't want to be in stress or distress situation. The advantage is that whatever exposure you want to take in CAPEX or asked working capital needs, that must be adequately funded. But secondly, whatever approval we are taking, sir, we are beginning the process. It does not mean we do in one installment, or it may be two rounds depending on investor interest in our space, in our Company. So, we are still not very decided that this money will be raised tomorrow itself. It is only the beginning of the process. And we may complete this over a year, either as a preferential allotment or as a QIP, or depending on investor interest in our opportunity and value is willing to pay, which will be goo d for all the stakeholders in the Company today. But we are also strongly looking on foreign enterprise, FIIs or FPIs, more than you know, because domestic participation is already very high in our Company.

Indeed, I understand. Now, if you are investing almost Rs. 2000 crore to Rs. 2,500 crores in the system on almost a yearly basis, then one would assume that, you know, just a 13% to 15% kind of EBITDA would possibly give us only something like about Rs. 300 odd crores - Rs. 350 odd crores which is not the kind of matrix that we have worked with in the past . So, although the turnover can be higher probably the flow through to the bottomline should be a lot higher than 13%. Right, otherwise it won't meet the previous matrix of us.

You are perfectly right sir But you may see in our documents happening in two parts as you saw in the past. One, some part of return will be as a value accretive and some part will be as a CAPEX returns in execution return. So, it will be a blend of the two as you saw when we sold our transmission assets. We generated handsome capital gains. Similarly, when we exited wind assets we had a handsome capital gain. So, this will also be hybrid model of EPC reward plus your exi t reward as a capital gain. These CAPEXs are happening in SPVs, because that is mandatory. All smart meter work is also happening in SPV only. That is also a requirement of the Government. So, that post-concession period, they go back to the Government.

Now, just to guide the market more appropriately, if you can kind of actually make a presentation to kind of capture this, because on the face of it, it looks as though you will have about 13 %- 13.5% kind of margin on all your top line, while some of it actually will come from value accretion. So, it might make sense to guide the market accordingly.

Yes, we will do, we will take care, no issue.

Thank you. The next question is from the line of Gurwinder Singh from Fortuner Investment Advisors. Please go ahead.

My question probably continues from what Venkat was trying to get to. As we understood your business, the CAPEX heavy or asset heavy businesses of smart meter and data center will obviously grow in the overall pie in the next 5 years or so. Just a sense of philosophically, would you limit the CAPEX from the balance sheet of the parent into these SPVs, essentially by funding the growth beyond the point from selling stakes in those NBFCs and finding partners? Or would you be philosophically guided to continue to invest and limit the partner's capital there? I mean, more a directional question, if you could help.

It's a very delicate balancing of risks versus rewards between yours and me sir. Our takeaway call is that we don't want any investor to underprice our assets merely by assuming that he is part of the project happening. This core project, c onstruction project management risk or project development risk number one and secondly the very stabilization risk thereafter of the revenue stream. So, that when like we when we parted our assets on transmission then those projects were not part of any construction risk or any revenue risk. So, we could exit at about 9% IRR or 9%-10% IRR depending on that cycle happening in the country. But today, when you take a partner, when project is in construction phase or delivery phase, any investor looks for a return of no less than 15% or more. So, that is very pushing. That belongs to my investors. That belongs to my stakeholders. So, we want to, Techno is sure of that risk. We understand that risk. We are confident of mitigating that risk. So, that reward must be part of my balance sheet, whether it is happening in SPV or in the parent. But we will definitely be funding SPV with the debt, as long as something with the capital from the parent Company. But definitely those SPV will be parted out once projects are operational to the financial investors or to invest as required. So, that we are able to derive or realize the most optimal value out of our learnings, our experiences, and as well as out of the seeing the business risks out of the discom agreements or regulatory agreements. So, we don't want to be underpriced on our assets.

Thank you. And the next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.

Continuing on the previous question itself, now so the advanced meters we understand that you know it is more like opportunity where once it is done then there can be some IRRS linked to it. But in case of data centers while we have the EPC sort of capability, but we may not have the capability to get the data centers filled with the tenants and up and running. So, in that model now, if you're taking a lot of funding in our parent, then how will it help the potential guy who will come to the data center business as an investor?

Sir, in data center, the investor will happen earlier, then it's occupied or put to use like you can see. We are approached by many investors, but we are awaiting its readiness so that somebody is not a part of my construction risk. Once it is visibility of readiness and operationability happens, definitely somebody will become our partner by then. We have capital with us already on a understanding levels and still to get into a definite projects between us. So, and also we are inducting people from the Silicon Valley as a director in our board, which will you see soon happening, who have built multi -billion-dollar data centers in US and exit it. So, we are conscious of all these issues and resolving them in a professional manner, I can assure you. We are not mounting this which is not digestible by us or not addressable by us.

Understood sir and on the on the fundraising itself. So, the way I understand that maybe you will do it in parts over the next 12 months or so after getting the shareholder approval and this entire money may not be drawn in one go?

Just one more question. So, when I am looking at your console and standalone statements, I do see that the gross profit in the console is lower by 12 crores compared to the standalone and same time like in the second quarter, I think or in the first quarter of this year, it was 26 crore of profits. So, how what is the policy around doing this EPC business for our subsidiaries. Is it entirely in cost-to-cost basis as of now? But if that we saw then how come we are having some losses in the console? So, if you can explain the policy regarding how we are billing our subsidiary companies?

No, I think these are accounting issues and you have to comply to many norms of the books of accounts as you build. We’re gradually trying to come around. Firstly, console happening is no more than data center now in the Company subsidiary. There is no other asset which is in control. Number one. Number two, our aim is not to have more profit in the parent over the asset. We like to drive more value out of the CAPEX exit subsidiary asset as a capital gain. But at arm’s length pricing, we have to be prudent under corporate governance norms. And accordingly, we keep benchmarking the price of the contract to parent versus subsidiary. So, you can see that the gap is narrowing down.

And overall, we can expect a 20% sort of an equity IRR, post-tax equity IRR once we down sell these assets, including the EPC margins?

Yes, absolutely. As of now, yes. It may be more. The way we are seeing investment s at the moment happening in data centers, post-AI kind of rush, market is getting fired more than energy also now.

Okay, so that's good to know, sir, that we can get more than 20% post-tax equity IRR. And as I understand, part of it would b e back-ended because of the exits that we may get. Absolutely right. Understood, sir. Thank you and all the best.

Thank you. That was the last question. I now hand the conference over to management for closing comments.

I thank you all for joining the conference call with us. And if you still have any query left with you, please drop in, drop a mail to us. And if you happen to be on this side of the city or part of India, you are welcome to drop in our office to visit us and witness for yourself how we work. Our daily office is equally large and vibrant now. You can visit us in Gurgaon office also. Ankit Gupta is the re located, he can answer all your questions. And with this , I would like to once again thank you all of you and close the conference.

On behalf of Asian Market Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.