Any current/future capex/capital investment/strategic investment?

Planned CapEx of INR 500 crore for the coming financial year. INR 100 crore successfully raised from banks (Axis Bank and ICICI Bank). INR 150 crore will come from internal accruals. Additional INR 50 crore expected from preferential issue and ESOP. Remaining INR 200 crore is being actively raised. Major CapEx occurred in Q3; Q4 CapEx was around INR 4-5 crore. Around INR 50 crore in Work-In-Progress (WIP) CapEx expected to capitalize in Q1 or Q2. Acquisition of Lotus completed on March 31, adding revenue and sites, strengthening presence in Mumbai and Delhi. Plans to add 5,000 towers this fina

Future growth expectations in sales/revenue/volumes?

Suyog Telematics plans to roll out 10,000 towers over the next two financial years, adding 5,000 towers each year in FY25 and FY26. They have secured sufficient business from Vodafone, Airtel, Jio, and BSNL to achieve this target. The company aims to significantly expand its FTTH and fiber verticals in the next 2-3 years, with recent success in winning a major MTNL fiber tender in Mumbai, potentially adding 500,000 sites. There is a strong expected increase in business from BSNL due to it becoming a preferred partner, with BSNL transferring sites from underperforming IP companies to Suyo

Future growth expectations in earnings/operating earnings/profits/EPS?

The company plans a significant CapEx of INR 500 crore in the coming year to support growth and rollout activities. They are targeting to roll out 8,000 towers with 10,000 tenancies, expecting strong tenancy additions from BSNL (5,000-6,000) and Vodafone (around 4,000). Margins are expected to be sustainable; PAT margin improved by 275 bps to around 18%, excluding ESOP impact. EBITDA margin excluding ESOP impact increased robustly to 71.4%, indicating strong operating profitability. Other income reduction due to one-time interest income ending, but core business profitability remains s

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Suyog Telematics LtdQ1 FY25Telecom - Services

Suyog Telematics Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹805P/E: 27.1Market Cap: ₹931 CrSector: Telecom - Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Suyog Telematics plans to roll out 10,000 towers over the next two financial years, adding 5,000 towers each year in FY25 and FY26.
→They have secured sufficient business from Vodafone, Airtel, Jio, and BSNL to achieve this target.
→The company aims to significantly expand its FTTH and fiber verticals in the next 2-3 years, with recent success in winning a major MTNL fiber tender in Mumbai, potentially adding 500,000 sites.
→There is a strong expected increase in business from BSNL due to it becoming a preferred partner, with BSNL transferring sites from underperforming IP companies to Suyog.
→Growth from Vodafone and BSNL tenancies is expected to boost revenue in coming quarters.
→The company expects revenue impact from new tower additions and tenancies to reflect fully in upcoming quarters as rollouts complete and billing commences.

Margin guidance

Category 3

→The company plans a significant CapEx of INR 500 crore in the coming year to support growth and rollout activities.
→They are targeting to roll out 8,000 towers with 10,000 tenancies, expecting strong tenancy additions from BSNL (5,000-6,000) and Vodafone (around 4,000).
→Margins are expected to be sustainable; PAT margin improved by 275 bps to around 18%, excluding ESOP impact.
→EBITDA margin excluding ESOP impact increased robustly to 71.4%, indicating strong operating profitability.
→Other income reduction due to one-time interest income ending, but core business profitability remains stable.
→Cash flow has improved significantly, which supports better rollout and operational expansion.
→The company expects continued margin maintenance (32%-35% net profit) and improved EBITDA in coming quarters.
→No major one-offs like ESOP hit expected in the current year, implying stable profit growth.

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Fundraise plans

Yes

- The company has planned INR 500 crore CapEx for the coming year. - So far, INR 100 crore debt has been raised from banks: INR 50 crore from Axis Bank (March) and INR 20 crore from ICICI Bank, with INR 30 crore expected in the April quarter. - They still have a shortage of INR 250 crore for CapEx. - Of the shortage, around INR 50 crore is expected from preferential allotments and ESOP. - The balance INR 200 crore is still being sought through fundraising efforts. - ESOP exercises are expected next year, with 5 lakh shares pending warrant conversion likely around June or July. - No big one-off expenses like ESOP are expected this financial year. - Fundraising updates will be shared when positive news is available. In summary, the company is actively raising debt and equity to fund expansion but still seeking INR 200 crore.

Order book

- The company is confident of achieving a rollout of 10,000 towers over the next two financial years, adding 5,000 towers each year. - They have secured enough business from Vodafone, Airtel, Jio, and BSNL to meet this target. - Recently awarded the L1 tender for MTNL fiber in Mumbai, expected to add 500,000 sites. - BSNL has designated Suyog as a preferred partner, transferring non-performing IP company sites to Suyog, expecting a significant jump in BSNL-related business soon. - The Lotus acquisition adds approximately INR 15-16 crores in revenue and 120 sites with 140 tenancies, expected to grow by 50% in the coming quarter. - Current backlog includes unbilled revenue pending billing due to site integration or PO-related issues, amounting to around INR 24 crores. Overall, the company has a strong and growing order book with major telecom operators and government contracts supporting its expansion plans.

Capex plans

Yes

→Planned CapEx of INR 500 crore for the coming financial year.
→INR 100 crore successfully raised from banks (Axis Bank and ICICI Bank).
→INR 150 crore will come from internal accruals.
→Additional INR 50 crore expected from preferential issue and ESOP.
→Remaining INR 200 crore is being actively raised.
→Major CapEx occurred in Q3; Q4 CapEx was around INR 4-5 crore.
→Around INR 50 crore in Work-In-Progress (WIP) CapEx expected to capitalize in Q1 or Q2.
→Acquisition of Lotus completed on March 31, adding revenue and sites, strengthening presence in Mumbai and Delhi.
→Plans to add 5,000 towers this financial year and another 5,000 towers next year.
→Focus on FTTH and fiber vertical expansion, with tenders like MTNL fiber in Mumbai.

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1Suyog Telematics Ltd

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