Anant raj uploaded a very nice presentation on data Centers and another comprehensive presentation too. Few concall info nuggets on data center business and comparison with Techno electric that I am jotting down here for my future reference.
As regards to data center, due to cheaper land and ready buildings, Anant raj is saying their capex comes to 28 crore per mw. Techno says 45 crore per mw.
Anant raj saying 300 mw in 4 years, 28 ready soon. 21 in Delhi 63a and 7 in Panchkula. Techno saying 250 mw by 2030. Anantraj saying they will get 90 lakh per mw rent and 15 lakh per mw will be expense so net 75 lakh per mw, for the colocation data Centers. They have a consultant/client with technical know how who has told them to install servers and they are doing it as a pilot project for 0.5 Mw. Can be 5 times this if their server pilot program becomes successful, and apparently they are confident but cautious too.
If we count 28 mw that they say is ready till December, that’s additional 60 crore per quarter net profit if their server experiment fails. And can be 180-200 crore per quarter if it succeeds. Right now 100 crore per quarter profit from real estate, means directly 50 percent addition to profit even if the server experiment fails. If it succeeds, it will be 3 times current profit every quarter.
Also Anant raj current land bank must be 3-5000 crore which gives a little bit comfort to valuation. Still I do not think it’s cheap, and I do not know how big a moat ready access to land and buildings is.
Anantraj is planning to follow the lease model for data Centers whereas I think techno electric will do epc or sell after execution of data Centers. Not sure about this point.
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