Schneider Electric Infrastructure: A global company with advantage of a industry tailwind:

There was a question on the increase in the other expenses in the Q1fy24 conncall, and following the response from the management:

Extract of concall:

Regarding the royalty to the parent company, there was a question related to similar issue in q1fy24 concall, in which company said they need not pay revenue to parent company for using the SW platform, they are part of group offerings. However, it’s not same as royalty for using the IP from parent company, which is not clear from the available sources, this is the part where we need to explore more, if someone know please share more information.

Extract of concall:

Regarding the third part of your question which is funnelling out of value generation to global company, i could not find the evidence for company practicing this (with my limited understanding of the company) however, it won’t ascertain it’s not happened or not going to happen in the future. This is where we need more collaboration and more people focusing on different aspects and provide their opinions and insights which can be debatable further.

I am attaching the link for for Q1fy24 conncall and transcript

Schneider Electric Infrastructure Earnings Concall For Q1 FY24

https://www.bseindia.com/xml-data/corpfiling/AttachLive/321001fc-68d2-4f9e-96d0-0150e25a87a4.pdf

We need more understanding on what all the Indian entities are doing how they share the revenue and the work including one more listed company which is currently under delist/relist confusion. They tried to delist the other listed company in India ‘Schneider electric president systems ltd’ which went into some complication and finally decided to re-list

However, there are very good opportunity for this company to grow in multiple areas which are specific to Schneider Electric Infrastructure Ltd, specially related to building the largescale data centres, as India made it compulsory to keep all the data within the country, many of the big players like Amazon, Meta, Google and other big companies which generate the huge amount of data to build these hyper scale data centres in India.

Request everyone to share their thoughts and insights. Thanks.