TCC Concept Ltd.- An Unexplored Data Center Play

Thanks for pointing it out, I didn’t know about the AGM discussion. It’s available here:

https://tccltd.in/wp-content/uploads/2024/10/Transcript.pdf [I think they have gotten the numbers a bit misplaced because of typos]

Takeaways:

1. My assumptions about the non-data centre revenues were wrong. I didn’t have the data and assumed the current run-rate. The management has. indeed, guided for 100 crore of top-line from these businesses, so the growth in the next 2 quarters should be really good or they should ideally be doing around 60-70 crore worth of topline. Either way, seems good with the current margins.

2. The management guided that there are 3 verticals in the business: 1. Data Center through NES; 2. The Real Estate broking business (which also has an asset renting business); 3. Real Estate Database services (it is in the beta stage, also expected to kick in in Q4 of current FY).
   Note: [In any future concall, I think questions about these verticals can also be put up: what are these assets for renting, what is the exact model for the database vertical, key customers, etc; Also, I would want to be cautious of related party transactions with EFC about the asset rentals business.]

3. However, the management has clarified that they have utilized 50 crore for an actual net capacity of 3 MW of their data center, the guidance being one of 5MW. That is, I think, still comes out to be 16-17 crore/MW, which is within the 15-20 crore range that Umesh mentioned. Or am I looking at it wrong? The difference emerges as a result of the difference between the power consumption required vs the actual capacity available to be given out in rentals.

4. Now, one thing if you could help me understand: when Anant Raj’s management says that they will generate revenue of 3300 crore from 307MW, is that the gross MW power capacity or the net rental capacity? This difference is going beyond my circle of competence, at least.
   https://www.bseindia.com/xml-data/corpfiling/AttachHis/e5e45961-b63c-4120-a5bc-2366e641e73e.pdf