Exicom Tele-Systems Limited — Q3 FY25 earnings call

Call held 6 Feb 2025

Management summary

Exicom Tele-Systems reported a mixed Q3 FY25, with consolidated revenue growing 28% QoQ to ₹197 crores, primarily driven by the EV charging segment's 38% YoY growth. The company secured landmark critical power orders worth ₹1,680 crores for the BharatNet program. However, consolidated revenue saw a 25% YoY decline, and the recent Tritium acquisition is currently impacting profitability, though it opens significant global market opportunities. Management expects improved performance in Q4 and the next financial years, with Tritium targeting EBITDA breakeven by FY26.

Highlights

  • Consolidated revenue grew 28% QoQ to ₹197 crores, driven by EV segment performance.

  • Standalone EV charging revenue increased 38% YoY to ₹67 crores, indicating strong market traction.

  • Received landmark critical power orders totaling ₹1,680 crores for the BharatNet program, ensuring long-term revenue visibility.

  • Acquisition of Tritium provides access to a $10 billion global DC charging market and strengthens international presence.

  • Hyderabad manufacturing plant on track for production start in May 2025, enhancing capacity and cost efficiency.

Concerns

  • Consolidated revenue declined 25% YoY, and standalone critical power revenue degrew by approximately 60% YoY to ₹80 crores.

  • Tritium acquisition is currently causing EBITDA and PAT drag, requiring investment for 2-3 more quarters.

  • Gross margins impacted by exchange rate fluctuations and increased manpower/R&D costs.

  • Domestic EV charging market faces heightened competitive intensity and margin squeeze, described as a 'Red Ocean'.

Key financials

  1. Consolidated Revenue ₹197 Cr -25%YoY
  2. Standalone EV Revenue ₹67 Cr +38%YoY
  3. Standalone Critical Power Revenue ₹80 Cr -62%YoY
  4. YTD Standalone Revenue ₹539 Cr -5.1%YoY
  5. YTD Standalone Margins 29.5%

What they filed

Q1 FY27: revenue up 61.5%, net profit up 10.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue153 197 266 205 282 +84%277 +41%388 +46%331 +61%
EBITDA-15 -31 -16 -39 -33 −120%-32 −3%0 +100%-22 +44%
Net profit-17 -49 -62 -83 -69 −306%-68 −39%-54 +13%-74 +11%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹240 Cr Total
  • EV Charging (Consolidated) ₹110 Cr 45.8%
  • Critical Power (Consolidated) ₹86 Cr 35.8%
  • Tritium Turnover ₹44 Cr 18.3%

Order book

high confidence

Total value

₹2,000 Cr

as of 2024-12-31 quantified

Inflow this quarter

₹1,680 Cr

Execution

deploy over the next 3 years

Composition

Mix 3 segments
  • Critical Power (BharatNet) ₹1,680 Cr 80.8%
  • Standalone (both divisions) ₹275 Cr 13.2%
  • Subsidiary Entities (Tritium) ₹124.5 Cr 6%

Share of order book by segment, derived from disclosed amounts

The company has a strong order book exceeding Rs. 2,000 crores as of December, including a significant new order of Rs. 1,680 crores for critical power, providing good visibility for the next three years.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New integrated plant in Hyderabad for power and electronics products, including battery manufacturing
    • Investment in Tritium for restarting operations, sales, and service momentum
    We had aimed to start the trial production in April, maybe two to three weeks delay in terms of schedule, but we do plan to start production there in about between first and second week of May. So a lot of progress there, a lot of investment going into next generation manufacturing techniques
  • Debt Debt disclosed
    And we did take some loans to acquire Tritium, and there is an impact of interest on loans that is gone. So that's been taking the hit on the PAT.
  • M&A Tritium Acquisition · Closed

    Acquisition of a global DC charging company through a bankruptcy process, aiming to be a top five DC fast charger manufacturer globally and access a $10 billion addressable market.

    Currently causing EBITDA and PAT drag, requires investment for 2-3 more quarters, expected to achieve EBITDA breakeven in FY26.

    Exicom made acquisition of a global DC charging company by the name Tritium in September of 24. We acquired this company through a bankruptcy process or a restructuring process. ... Tritium, which did about Rs. 44 crores of turnover in this last quarter. ... EBITDA going down a little because Tritium is still a startup. ... this business will require investment over the next 2-3 quarters. ... achieve EBITDA breakeven in Fiscal 26
  • Liquidity Liquidity disclosed IPO proceeds around Rs. 176 crores. Cash in the books. Receivables at 71 days (improved from September). Inventory roughly same.
    I think we have balanced IPO proceeds around Rs. 176 crores. ... So we have about 71 days of receivables, which is an improvement from September. Inventory is roughly the same. And obviously now we have cash in the books

Guidance & targets

Profitability

  • Tritium EBITDA Breakeven Profitability · FY26 · High confidence EBITDA breakeven
    this business will require investment over the next 2-3 quarters. However, we think this will help us achieve, the business should achieve EBITDA breakeven in Fiscal 26

    — Anant Nahata

  • Standalone Profitability Profitability · Q4 FY25 · High confidence Profitability
    on a standalone basis, we definitely hope for profitability in quarter four.

    — Anant Nahata

Capacity

  • Hyderabad Plant Production Start Capacity · May 2025 · High confidence Production start
    we do plan to start production there in about between first and second week of May.

    — Anant Nahata

Product Launch

  • Liquid-cooled Charging Technology Launch Product Launch · H2 FY26 · High confidence Launch
    This product is something which has gotten immense attraction from prospective customers and will be launching it in H2 of Financial Year '26.

    — Anant Nahata

Growth

  • Telecom Infrastructure Industry CAGR Growth · annual basis · High confidence 8% to 10%
    on an annual basis, the growth of the telecom infrastructure industry is expected to be between 8% to 10% CAGR.

    — Anant Nahata

Market context

  • Global DC Fast Charger Ranking Market Share · by 2030 · Medium confidence Top five
    aim to be top five DC fast charger manufacturers in key global markets by 2030

    — Anant Nahata

What to watch in Q4 FY25

Hyderabad Plant Production Start

May 2025
Current Trial production aimed for April, slight delay expected
Target Commercial production starts in May 2025

Why it matters

Commissioning of this new integrated plant is crucial for expanding manufacturing capacity for power electronics and batteries, impacting future revenue and cost efficiency.

We had aimed to start the trial production in April, maybe two to three weeks delay in terms of schedule, but we do plan to start production there in about between first and second week of May.

Risks & concerns

  • Tritium Acquisition Financial Drag

    high

    Tritium is a startup acquired through bankruptcy, requiring investment for 2-3 quarters and currently causing EBITDA and PAT drag.

    Management acknowledged

  • Forex Fluctuation Impact on Margins

    medium

    Recent rupee depreciation against USD has negatively impacted COGS and margins, leading to losses even in Indian business.

    Management acknowledged

  • Critical Power Business Lumpiness

    medium

    The critical power business has historically been lumpy due to project cycles and delays in PSU projects, but management expects less lumpiness going forward due to large order book.

    Management acknowledged

  • Heightened Competition in EV Charging Market

    medium

    Increased competitive intensity in both home and DC fast charger markets is leading to margin squeeze, described as a 'Red Ocean'.

    Management acknowledged

Q&A highlights

7 direct
Tritium Financials and Path to Profitability Partial
this business will require investment over the next 2-3 quarters. However, we think this will help us achieve, the business should achieve EBITDA breakeven in Fiscal 26

Analyst sought specific financial details for Tritium, which is currently a drag on consolidated results. Management provided a timeline for EBITDA breakeven but no specific revenue/PAT numbers for the quarter.

Asked by Balasubramanian

Forex Risk Mitigation Strategies Direct
They are taking steps to aggressively reduce the COGS to negate the impact of the dollar rise. Second, localization is something we continuously focus on, but the pace of localization has increased for us in the recent months to again negate the dollar impact. And third, now we are looking at locking in some of the dollar pricing in conjunction with locking in customer contracts.

Addresses how the company plans to counter the negative impact of rupee depreciation on margins, a key external factor.

Asked by Balasubramanian

Hyderabad Plant Progress and Working Capital Direct
So on Hyderabad as I mentioned in my update we are looking at production in May. The construction is going at a good pace... So we have about 71 days of receivables, which is an improvement from September. Inventory is roughly the same.

Provides an update on a significant capacity expansion project and reassures on the health of working capital management.

Asked by Balasubramanian

Consolidated Profitability Timeline Post-Tritium Acquisition Direct
On a standalone basis, we definitely hope for profitability in quarter four. And from next financial year, we have great order book to ensure consistent growth in revenue and profits over the next 3-4 financial years. On a consolidated basis, we do see investments in Tritium, and time for it to achieve business as usual or breakeven, pass the breakeven point would be 2-3 more quarters.

Clarifies the expected timeline for the company to return to overall profitability, distinguishing between standalone and consolidated performance.

Asked by Sahil Patani

Rationale for Netherlands Subsidiary Shutdown Direct
So we didn't want to operate two separate subsidiaries to expand businesses, complex to maintain so many regulatory requirements, etc. So we do have a Netherlands subsidiary where they are already doing business of Tritium and will do of Exicom as well whenever the chance comes. So in order to avoid duplication, this has been shut down.

Explains a strategic decision regarding international operations and asset consolidation post-Tritium acquisition.

Asked by Sahil Patani

Managing Competition in Domestic EV Charging Direct
There is no doubt there is heightened competitive intensity in both home charger market as well as DC fast charger market in India... At this time, the whole industry suffers a bit out of margin, but companies such as us, we continue to focus on things that really matter, reliability, holding onto key customers, increasing our wallet share in key customers, saying no to some business, which is very hard to do, but we have to sometimes.

Addresses concerns about increasing competition and margin pressure in a key growth segment, outlining management's strategy.

Asked by Sambodhi Sarkar

Predictability of Critical Power Business Direct
However, I think the good thing is we have a very good base and predictability because of the large order that I spoke about over the next 3 years. So my message to the investor shareholders is, we will not see the level of lumpiness that we have seen this year for the next quarter or next financial year.

Provides reassurance regarding the future stability and predictability of the critical power business, which has historically been lumpy.

Asked by Sambodhi Sarkar

Total Order Book and Capacity Utilization Direct
The current order book, this is as of December... it will be in excess of Rs. 2,000 crores... Current capacity utilization would be... around between 60% to 65%.

Quantifies the total order book and provides insight into current operational capacity utilization.

Asked by Dheeraj Kumar

2 min read 6 chapters

Detailed narrative

Q3 FY25 Performance Overview

Exicom Tele-Systems reported a consolidated revenue of ₹197 crores in Q3 FY25, marking a 28% sequential growth but a 25% year-on-year decline. The EV charging segment demonstrated strong performance with standalone revenue growing 38% YoY to ₹67 crores. Conversely, the critical power business experienced a significant standalone degrowth of approximately 60% YoY, contributing ₹80 crores to revenue. Year-to-date standalone revenue stood at ₹539 crores with margins at 29.5%, reflecting investments in manpower and R&D.

Landmark Orders & Critical Power Business Outlook

The company secured its largest-ever purchase orders in the critical power business, totaling ₹1,680 crores. These orders are for hybrid power systems, lithium-ion batteries, and maintenance contracts for over 10 years, serving 1,60,000 panchayats under the BharatNet program. While Q3 was sluggish for critical power, management anticipates strong growth in Q4 and the next three financial years, expecting less lumpiness due to the substantial order book. The overall telecom infrastructure industry is projected to grow at an 8-10% CAGR annually.

EV Charging Segment & Tritium Acquisition

The EV charging segment showed robust growth, with consolidated revenue reaching ₹110 crores. Exicom acquired Tritium, a global DC charging company, in September 2024 through a bankruptcy process. Tritium contributed ₹44 crores to Q3 turnover and secured $13.7 million in orders. While Tritium currently impacts consolidated EBITDA and PAT due to required investments, management aims for it to achieve EBITDA breakeven by FY26 and positions Exicom to be a top-five global DC fast charger manufacturer by 2030. The company also launched an integrated DC fast charging technology with energy storage at Bharat Mobility 2025.

Hyderabad Manufacturing Plant Update

Construction of the new integrated manufacturing plant in Hyderabad is progressing well. This facility will produce power and electronics products, including battery manufacturing. The company expects trial production to commence in May 2025, slightly delayed from the initial April target. This plant is crucial for leveraging next-generation manufacturing techniques and achieving high quality standards with optimized operational costs, supporting future growth.

Market Trends & Competitive Landscape

The domestic EV market is experiencing a surge in demand, supported by PM e-drive policies and new model launches from major OEMs. This is expected to create significant demand for fast charging infrastructure, with 22,000 fast chargers out of 72,000 subsidized chargers being for four-wheelers. However, the EV charging market is characterized by heightened competitive intensity, leading to margin squeeze. Exicom's strategy focuses on reliability, key customer retention, and increasing wallet share to navigate this 'Red Ocean' environment.

Financial Strategy & Cost Optimization

The company is actively working on optimizing costs to counter the impact of rupee depreciation and maintain margins. Strategies include aggressive COGS reduction, increased localization efforts, and exploring hedging options for dollar pricing. Investments in manpower and R&D, along with interest costs from loans for the Tritium acquisition, have contributed to lower EBITDA and PAT. Management expects standalone profitability in Q4 FY25 and overall good results in the next two financial years.

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