Suyog Telematics Ltd

- Suyog Telematics is currently raising ₹350 crore through a preferential equity issue: ₹250 crore from investors and ₹100 crore from promoters, expected to complete by December. - The ₹350 crore raised will be largely used for CapEx rollout, adding approximately 5,000 towers by March. - Post this equity raise, the company plans to raise additional debt in the next financial year to support significant CapEx plans (₹800 to ₹1,000 crore over two years). - The better equity ratio after preferential issue will facilitate access to debt from multiple financial institutions. - The company plans a mix of internal accruals and debt for funding ₹450-₹500 crore CapEx in FY26, keeping debt levels moderate. - Debt will support both organic growth and inorganic acquisition opportunities, especially in circles where the company wants to strengthen presence.

- For FY '25, Suyog Telematics plans total CapEx of around ₹450 crores, with ₹65 crores spent in H1 and ₹400+ crores targeted for H2, aiming to roll out 5,000 towers by March 2025. - The company is raising ₹350 crores through a preferential issue (₹250 crores from investors and ₹100 crores promoters' contribution) by December to fund CapEx. - FY '26 CapEx is planned at ₹400-450 crores, largely funded through internal accruals and additional debt to support a significant rollout and growth. - Strategic inorganic growth is targeted with acquisitions focused on companies having Airtel and Jio tenancies, especially in circles where Suyog’s presence is weak; acquisition expected by next quarter. - The CapEx will also support fiberization (fibre-to-home, last mile connectivity, in-building solutions) as part of expanding next-gen connectivity solutions. - The company is pursuing IP-1 model for laying and subleasing fiber, moving away from EPC work to a recurring revenue model.

- FY25 revenue growth projected around 30% overall. - Targeting addition of 5,000 tenancies in H2 FY25 and another 5,000 in FY26, aiming for 15,000 tenancies by FY26 end. - FY26 organic revenue guidance is ₹320 crore; inorganic growth opportunities under exploration but guidance remains unchanged until deals are finalized. - Inorganic growth focus on acquiring companies in circles where Suyog is weak, targeting companies with Airtel and Jio tenancies to boost tenancy rapidly. - CapEx for FY25 estimated around ₹450 crore; further debt to be raised to fund expansion and inorganic acquisitions. - Target to connect 5 lakh home passes over 3-4 years, indicating significant market expansion potential. - Sustained EBITDA margin expected at 70-75% and PAT margin around 35% despite CapEx increases.

- The company projects around 30% overall revenue growth for FY24-25. - Targeting 5,000 new tenancies each in FY25 and FY26, maintaining high EBITDA margins (65-70%) and PAT margins (25-30%). - EBITDA margin sustained around 70-75% and PAT around 35% going forward, despite additional CapEx. - FY26 revenue guidance stands at ₹320 crore organically; inorganic growth could provide upside but is currently not factored in. - EPS improved to 34.40 with 24.7% YoY net profit growth in Q2 FY25; margin expansion expected to be sustainable. - The company plans ₹450-500 crore CapEx in FY26 funded via internal accruals and debt, aimed at scaling operations efficiently. - Strategic acquisitions expected to enhance tenant base and regional presence, with impact more visible from FY26 onwards. - Management confident of achieving all committed targets within the next two years.

- Current order book includes over 3,000 towers from Vodafone and 2,500 towers from BSNL as of Q2 FY25. - They have visibility to add around 5,000 tenancies in H2 FY25. - The order book is dynamic and keeps increasing monthly with new requirements from operators. - For BSNL specifically, they have more than 2,500 to 3,000 towers planned for erection in FY25 and a similar number targeted for FY26. - Vodafone's rollout is aggressive with 3,000+ towers already in the order book. - They plan to add approximately 4,500 tenancies in the second half of FY25. - Overall, the company expects doubled growth in FY25 compared to FY24 owing to backlog of rollout extending into FY25 and FY26.