Q2 FY25 Conference Call Updates:
- Fiber Optics Demand: The company expects demand for fiber optics to pick up from Q4.
- Capacity Utilization: Anticipates increasing capacity utilization to 80%, up from the current 40%.
- Defense Sector Revenue: Revenue from the defense sector is expected to start contributing from Q1 next year.
- U.S. Projects Participation: Participating in both BEAD (Broadband Equity, Access, and Deployment) and non-BEAD projects in the USA, with non-BEAD projects being significantly larger than BEAD projects.
- Telecom Products Revenue Guidance: Expects telecom products revenue to reach ₹2,000 crore this year. With a current order book of ₹900 crore and around ₹1,000 crore already recorded as revenue, the company is confident of meeting this target.
- Long-Term Revenue Guidance: Maintained a revenue guidance of ₹10,000 crore over the next three years, implying a CAGR of 25-30%. This growth is expected to reflect in EPS from next year onward.
- Revenue Ratio Target: Aiming for a 2:1 revenue ratio between Telecom and Defense sectors within three years.
- BharatNet Contract: Expects the BharatNet contract to be allocated by Q1 next year.
- Increase in Finance and Employee Costs: Addressed the reasons for the increase in finance and employee costs from H1 FY24 to H1 FY25. Due to a change in the debt profile and new hiring since Q3 FY24, these costs are trending upward.
- Operations & Maintenance (O&M) Revenue: Current O&M revenue is ₹25 crore, expected to increase to ₹300-400 crore by FY27-28.
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