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Q3-2025 Earnings Call
AI Summary
Earnings Call on Jan 31, 2025
Strong Revenue Growth: Consolidated Q3 revenue rose to INR 515.37 crores, up 51% year-on-year, and EBITDA grew 46%, reflecting continued strong demand and execution.
Profit Surge: Q3 profit after tax (PAT) climbed 72% to INR 46.62 crores, with profitability improving across both quarterly and 9-month periods.
Order Book Strength: The company’s electric bus order book stands at 10,224 units, providing strong visibility for future revenue.
Production Ramp-up: Near-term delivery targets were revised to 1,200 buses for FY25 (from earlier 1,500), with management citing a focus on quality and operational efficiency.
Capacity Expansion: Manufacturing capacity is being increased, with expectations to reach 5,000 buses annually in 4–6 months and plans to scale up to 10,000 over time.
Stable Margins: Margins are expected to remain at 15–15.5% in the near term, though management sees them normalizing to around 12% over the longer term as volumes rise.
Active Technology Investment: The company unveiled blade battery technology, targeting longer ranges and faster charging, and is investing in robotics for future automation.
No Major Execution Headwinds: Management stated there are no battery supply issues or material financing bottlenecks affecting growth.
Olectra Greentech delivered robust financial results, with Q3 revenue growing by 51% year-on-year and profit after tax rising 72% for the quarter. The company also reported strong performance for the first nine months of the year, with both revenue and profits showing substantial double-digit growth. This momentum is attributed to sustained demand for electric buses and improving operational efficiency.
The company’s electric bus order book remains strong at 10,224 units, underpinning revenue visibility for the coming years. Large orders have been secured from key clients, and management expects to execute these orders over the next 24–30 months. Active participation in new tenders continues, with additional orders in the pipeline from several state transport undertakings.
Production targets for FY25 have been revised lower to 1,200 buses (from an initial 1,500), reflecting a focus on quality and operational efficiency during a period of plant ramp-up. The new Hyderabad facility is set to reach a capacity of 5,000 buses annually within 4–6 months, with further plans to scale up to 10,000. Investment in robotics is underway, expected to be operational within 6 months.
Current margins are stable at 15–15.5%, with management confident of maintaining this in the near term. Over the longer term, as volumes increase, margins are expected to normalize to around 12%. Growth in higher value products and service revenue from AMC contracts is also contributing positively to margins and absolute profitability.
Olectra launched blade battery technology with enhanced range (500–700 km per charge) and faster charging, aiming to differentiate its product offering. Homologation is underway, with commercial rollout expected to start with buses and possible expansion to trucks. The company is investing in robotics and automation to further improve manufacturing efficiency.
Aftermarket service (AMC) revenue now accounts for about 5% of total revenue, roughly INR 65–70 crores, and has grown 1.5x year-on-year. AMC income is expected to rise as the fleet expands, providing a steady and growing revenue stream over the long term (12-year contracts).
Olectra plans total CapEx of INR 750 crores for capacity expansion, funded by INR 500 crores in new debt and INR 250 crores from internal accruals. Debt draw-down is expected over the next 4–5 months, linked to the plant’s machinery outlays. Future expansion to 10,000 buses could require an additional INR 100–200 crores.
The EV bus industry remains in a growth phase, with substantial government tenders but also delays in order finalization and execution (e.g., payment security concerns slowing some government tenders). Olectra has not won all recent tenders but maintains a leadership position in terms of cumulative buses delivered and kilometers clocked.
Ladies and gentlemen, good day, and welcome to Olectra Greentech Q3 FY '25 Earnings Conference Call hosted by Axis Capital Limited. [Operator Instructions]
Please note that this conference is being recorded. I now hand the conference over to Mr. Amar Gaur from Axis Capital. Thank you, and over to you, sir.
Thank you, Yusuf. Good evening, everyone. On behalf of Axis Capital, I welcome you to the Q3 FY '25 post results conference call of Olectra Greentech Limited. From the management team, we have with us today, Mr. B. Sharat Chandra, CFO; Mr. P. Hanuman Prasad, Company Secretary and Compliance Officer, along with teammates Finance and Strategy. I will now hand over the call to Mr. B. Sharat Chandra for his opening remarks, post which we can have the Q&A. Over to you, Mr. Sharat Chandra.
Thank you, Mr. Amar. A warm welcome to all of you who joined us today for the Olectra Greentech Earnings Call for the quarter 3 '24-'25. We are taking as read the presentation, which is put on our website along with Safe Harbor statement thereon.
We are pleased to state that overall results for the quarter 3 and 9 months remained strong, with growth in our consolidated revenue and profitability. We have till 31st December, they cumulatively delivered about 2,448 electric buses and 51 electric tippers.
I would like to present the key highlights of your company at a glance. Olectra buses have successfully covered more than 30 crore kilometers across the length and breadth of the country. Strong demand continues with the company's net order book of electric buses, stands at 10,224 numbers after delivering 282 buses in Q3 FY '25. Notably, we unveiled our latest technology advancement, the blade battery technology at the Bharat Mobility Global Expo 2025. With its cutting-edge design and exceptional energy density, the blade battery promises not only longer ranges, but also the faster charging times, ultimately enhancing the performance, safety and reliability.
Our focus continues on increasing our manufacturing capacity and enhancing our technology capabilities, and we are constantly exploring new ways to improve, innovate and push the boundaries of what is possible in the electric mobility industry, setting new benchmarks for the future.
Now I will begin with providing you the key highlights for Q3 consolidated financials. On a consolidated basis, the revenue for Q3 was at INR 515.37 crores, up by 51%. The company's EBITDA for Q3 reached an impressive INR 81.77 crores, marking a substantive growth of 46% as compared to the corresponding quarter of previous year. The PBT surged to INR 61.95 crores, a remarkable 83% increase from the previous fiscal of INR 33.84 crores. The PAT stands at INR 46.62 crores, up by 72% compared to the previous fiscal INR 27.11 crores.
The performance highlight for 9 months. The top line was INR 1,352.98 crores, up by 56%. The company's EBITDA in 9 months reached an impressive INR 217.97 crores, marking a substantial 53% increase compared to the previous year. So PBT surged to INR 158.63 crores, a remarkable 85% increase from the previous fiscal INR 85.67 crores. The PAT stands at INR 118.52 crores, up by 86% compared to the previous fiscal INR 63.76 crores.
On a stand-alone basis, the revenue for Q3 was at INR 506.83 crores, up by 53%. The company's EBITDA for Q3 stood at INR 78.73 crores, a significant increase of 58% compared to corresponding quarter of previous year of INR 49.84 crores. PBT for the Q3 on a stand-alone basis surged to INR 60.87 crores, a remarkable increase of 103% versus the previous year's quarter 3 of INR 29.92 crores. The PAT stood at INR 46.31 crores, up by a significant jump of 108% compared to previous fiscal of INR 22.28 crores.
And the performance highlights on a stand-alone basis for 9 months. The top line for 9 months was INR 1,325.09 crores, up by 69%. The company's EBITDA reached an impressive INR 205.62 crores, marking a substantial 55% increase compared with the previous year's INR 132.64 crores. PBT surged to INR 153.93 crores, a remarkable 86% increase from previous fiscal INR 82.83 crores. The PAT for 9 months on a stand-alone basis stands at INR 115.25 crores, up by 86% compared to previous fiscal INR 61.96 crores.
Thank you, and over to the Axis team for the Q&A.
[Operator Instructions] First question is from the line of [ Banshi Mundra ] BSM Investment Advisor.
Greetings to you for a blockbuster quarter. Thank you for giving the opportunity, sir, for this con call. Sir, basically, I'll divide my questions in just 2 parts. What target are we seeing in 2025-2026 for the top line? And for the CapEx is done, what revenue are we expecting from that? And what other revenue are we expecting?
I think to answer your first question. For '24, '25, we are expecting the target to be around 1,200 numbers. And for '25-'26, we have already indicated earlier in the previous call, where we are targeting a conservative number of 2,500 numbers. We are actually ramping up the installed capacity to over 5,000 numbers. And by quarter 4 earnings call, we will have a clear clarity on what could be the guidance for the next financial year. As of now, we are indicating about 2,500 numbers.
As far as the CapEx is concerned, basically, we have a large order book of about 10,200 plus numbers. To meet these order execution, we have actually put up a new plant, where the construction on Phase 2 is an advantage of progressing at the advanced stage. And initially, we have a capacity build about 200 buses per month, where we are targeting to increase to about 400 buses per month. So the revenue -- so the CapEx, we have actually planned to take a debt of over INR 500 crores to meet the revenues. I hope I have clarified.
Next question is from the line of Gaurang from Utility Unified.
Yes. Congratulations for the Q3 numbers. I have a couple of questions. First, in terms of the order book, you mentioned that the order book is of 10,200 buses odds. So just to understand the value of these buses, I have got a few numbers. So basically, from Mumbai BEST buses, we have some 5,000 buses order and which are basically 12-meter AC buses, which should be around INR 1.75 crores in cost. Then we have MSRTC order, which is 2,800 are electric coach buses and we have 9-meter MSRTC, which would be around 2,350 number buses. So I've just done some calculations wherein I've arrived at number in terms of value to be around INR 20,000 crores. So am I right in projecting those numbers?
Mr. Gaurang, actually, I need to clarify. See basically, these numbers, the average sales realization, if you look at the sales mix currently, it's about INR 1.5 crores, if you look at 9-meters, 12-meters, and coach all put together. So when we talk about these set of large numbers and the pricing is definitely will be variable. It all depends on factors like what could be the cost. And these orders are going to be executed in the next 24 to 30 months. So in that scenario, based on the cost factor, both we and our customers will mutually agree for the price. As of now, the average price is about INR 1.5 crores, you can take INR 1.5 crores as a ballpark and then add the number.
Yes, it comes to around INR 15,000 crores to INR 16,000 crores.
Yes.
Yes. So my next question is recently, Chief Minister's Office of Maharashtra had tweeted that there was an MOU of INR 3,000 crores, which was signed between Olectra EV in Davos. So my question, is this related to the battery energy storage system investment, which MD sir spoke about a few months back?
Yes, one second. I'll have Mr. Hanuman to clarify.
Mr Gaurang, actually as a part of the business development, we are exploring the various opportunities. This is just an expression of our interest into that different kind of business, our extension of the electric vehicle-related issue. Maybe appropriate time once the concrete decision taken from the Board perspective, we will come back to the shareholders.
But is it vehicle related or is it a battery storage related?
Both, it's combined.
Okay, yes. And my last question. So what is the current status of the factory, like are the automatic robots in place so that the factory gets totally autonomous?
See, basically, we have placed the orders and we are expecting the machinery in about next to 3 to 4 months -- about 6 months' time. So phase 1 without robotics and the phase 2 is with the robotics, so it may take about 6 months' time to get all the machineries in place.
And if I may know, which companies robots are we thinking of? Is it ABB?
As of now, actually, we will not be able to deliberate.
One minute, sir. I'll just indicate the vendor names.
So we are discussing with all the major robotic players like FANUC, KUKA and all other top robotic players. I think this will answer your question.
Next question is from the line of Deepak Poddar from Sapphire Capital.
Sir, just wanted to reclarify I mean, this year, we are targeting 1,200 buses, right, in terms of delivery and next year 2,500 conservatively, right?
Correct.
And what was the number in this third quarter?
Third quarter, we did about 282, and cumulatively, we did about 753.
Cumulatively, we did about 753. So in the last quarter, we are expecting around 450 kind of a number, right?
That is the target we are targeting to get, we reached about 1200.
Understood. And how should we -- one look at margins? I mean, last 2 quarters, our margin has been quite stable at 15%, 15.5%. So in the near term, we expect this margin to continue?
In the near term, we expect the same margins. But over a period of time, I think I have clarified in the past, with the [indiscernible] numbers. In terms of value, we see a significant growth in value. But over a period of time, the margins could be around [ 10%, 12%. ]
Okay. Yes, yes. That, you have mentioned over the longer term. Maybe we expect margin at 12%, right? But in near term, this 15%, 15.5% kind of a margin is sustainable?
Correct. It all depends on the product mix, yes, also.
Yes, yes. Fair. And this entire INR 15,000 crores to INR 16,000 crores, we are expecting to execute in next 2, 2.5 years, right?
Right, correct.
Okay. Okay. Okay. And so considering this, I mean, your volume target of 2,500 looks conservative, right? I mean for the next year, ideally should be much...
I think I've mentioned to the first investor. So we will have more clarity when we come back for the Q4 earnings call. So as of now, conservatively, we would like to keep the number at 2,500. And once we have more clarity by Q4 earnings call, we would like to give the customised guidance.
Okay. Fair enough. And just one last thing on the debt side. By when we are looking to, I mean, increase the debt of INR 500 crores that you mentioned?
Next maybe 4, 5 months?
So in FY '26, right?
Basically, the plant and machinery part where we are yet to incur -- yet to draw down for the plant and machinery.
Correct. Correct. So in 4 to 5 months, I mean ideally in first quarter or second quarter of FY '26.
Correct.
Okay. And what is the total CapEx amount you mentioned? I missed that number?
The total CapEx we are estimating at about INR 750 crores including the land cost.
Okay. Out of this INR 750 crores, we are looking INR 500 crores through debt and remaining INR 250 crores through internal accrual?
Yes, yes, correct.
Next question is from the line of Prafull Rai from Arjav Partners.
Congrats for the great set of numbers. I have a couple of questions. The first is, see, is there a bottleneck or some kind of a glitch on supply side that we are facing, which is leading to lower-than-expected production at our end? We keep hearing all kinds of things. Therefore, I just wanted you to help us with the way we should be thinking about this particular issue. That is one.
Second, on the buses, we are selling the buses on a [indiscernible] basis or [indiscernible] whatever. So there is an intermediate vehicle, which is financing that. Is there any issue on the financing side of these buses because that becomes heavier and then we supply more of these buses. And that is question number two.
And third sir, when this increased capacity is going to come in the -- when will this capacity come in place in terms of when we can start producing buses. These are the 3 questions I have, sir.
The first question, as you are all aware, we are in continuous process of streamlining the production as we are ramping up our operations with a new plant. And while we are -- our initial guidance was about 1,500 numbers, now we now foreseeing a revised target about 1,200 numbers for this year. This adjustment reflects our commitment to prioritizing the quality and operational efficiency over share volume. The production numbers for the first 3 quarters have set a solid base and with the upcoming ramp-up of our new state-of-the-art facility, we are well positioned to achieve this revised target. We remain fully committed to scaling even more effectively in the coming quarters and continue to deliver sustained growth and creating a long-term value for our investors.
As far as the business model, I think you are aware, it's a GCC model. And the various Evey SPVs -- Evey Trans SPVs are incorporated to meet the requirements of various states. So I think in the past also, we have mentioned we made the latest 2 big orders of 5,150 buses and 2,400 plus 25%, about 3,000 buses as well as 2,100. Almost all these 3 major orders, these sanctions are in place. A couple of projects, we almost reached the final documentation stage and the last project, the documentation will be taken up shortly. So the financial closures are in place, so we don't foresee any major challenges as far as the financing is concerned.
With regard to capacity, we, as we have indicated in the past, we have built about 2,500 numbers, about 200 numbers per month, which we are ramping up to about 5,000 numbers in the near future. Over a period of 1 year, we want to ramp up to about 10,000 numbers.
Sir, one question probably. I just want you to help us with that. We keep thinking -- you're hearing that there's some kind of a supply issue on the battery side of it from China and some stabilization on the chassis manufacturing setup. Can you just help us because this battery thing, some other companies have also come and talked about. So are we having any such issues or probably these issues are passed and we are able to ramp up now?
We don't have any battery issues. As far as we are concerned, we don't have battery issues. So we are working, as I think we have indicated, we have a strong R&D team. We keep working on introducing new models and localization is a continuous process.
[Operator Instructions] Next question is from the line of Sameer Deshpande, an individual investor.
Congratulations, sir, for good numbers. I would like to know the production capacity. Currently, you mentioned, it's about 2,400 annually. And the Hyderabad plant in our presentation, it mentioned 5,000. How soon it will be taking 5,000?
Yes, 5,000 numbers, we are in about next 4 to 6 months' time, we are going to touch.
4 to 6 months time. And in the last quarter, I think we had sold 315 buses. And in this quarter, we sold about 282. So actually current run rate, it seems to be around 300 or so, we are targeting 1,200 for the current year.
Yes, correct.
Do we expect to be better off in the March quarter because of the government budgets, et cetera?
Nothing -- actually, there's no as such impact on the budget side. So basically, as I mentioned to fellow participants, we are in the continuous process of streamlining the production, and we are ramping up the operations with a new setup. And in quarter 3, we are focused on delivering higher value CX2 model. And this allowed us to increase our top line revenue even with slightly lower production volumes.
Meanwhile, we have invested time in optimizing our production processes and scaling up our supply chain to ensure smoother execution for execution of larger orders of different models in the near future. So we expect both the production volume and revenue to grow substantially, ensuring sustained value for all stakeholders.
Okay. And since we are mentioning 1,200 buses for the year, and we have achieved some 750-odd. So someone mentioned in the last quarter, the best can be 450-odd, and which will be significantly higher than 280 in this quarter.
We -- basically, our target is about 400 EVs in this quarter, 400 plus EVs. We are actually expecting -- based on all the parameters, we are expecting to meet this target. But as I said, this is the -- as of now, this is what we are targeting, and we want to break the Q4 with all the previous quarter numbers. And if we do that, that will be our strongest quarter, so we are targeting to do this, we will try our best.
Okay. And now, that is fine. Now the product in India. Currently, I think there are a few manufacturers along with you. And so what is -- which company has the largest market share in terms of the electric vehicle -- electric buses supplying to the government? Are we the largest one?
Yes. Yes. See, basically, I think in my introductory note, I mentioned about our numbers in terms of cumulative supply as well as kilometers. So our buses on Indian roads, we have crossed more than 30 crore kilometers. And by far, this is the highest actually compared to anybody in the market. And about 2,500 electric vehicles, we have supplied to 31 December 2024. In terms of both the supply number as well as the number of kilometers by far, we are the largest.
And in the last call, you had mentioned about the AMC which we received for e-bus. So what is the revenue that generated in this quarter or in this financial year compared to the last year?
Compared to last year, our revenue from AMC is about 5% of the total top line. So that means about INR 1,353 crores, about 5%, about INR 65 crores to INR 70 crores is our AMC income. And compared to last year, it has doubled almost, 1.5x more than last year. As the fleet increases, AMC revenue from AMC service is likely to go up.
Yes. As our captive total number, it goes up, it will be significantly because 5% is fixed? So wherein our volumes grow, if it is INR 2,000 crores, it will be INR 100 crores per annum or whatever?
No, it is not 5% fixed. As of now, the AMC income is about 5%. So as we progress, we expect the 5% to improve because of the fleet, if it goes about 10,000 numbers, the revenue contribution could be slightly better than 5%. But overall, yes, what you are saying rightly, it could be around 5% on a larger revenue base.
That is a very good steady source of income. And maybe in the next 1, 2 years, it can be significant income also. And that, so that including our operating margin target continues to be this or it can be higher?
In absolute terms, it will be higher, definitely. But in a percentage terms, over a longer tenure and with larger volumes, we expect that to stabilize around 12%.
But currently, it continues to be 15-plus. And maybe after 1, 2 years, it will come down to because then the volumes go up significantly?
Correct.
Next question is from the line of Bala Murali Krishna from Oman Investment Advisors.
What is the reason for this drop in the number of buses produced in this quarter? We are expecting a little bit higher number. Surprisingly, we see that number all dropped from the last quarter.
Mr. Bala Murali, I think there's a same question I have been asked by the other investors as well. I think we have tried to clarify. Maybe to summarize. As you are aware, we are in continuous process of streamlining the production. We are ramping up the operations in the new plant. And this adjustment reflects our commitment to prioritizing quality and operational efficiency over share volume. And the production numbers for the first 3 quarters have set a solid base. And with the upcoming ramp-up of the new state-of-the-art facility, we are pretty well positioned to achieve this revised target as well as in the coming future, we continue to deliver sustained growth. That is what our vision and creating a long-term value for our investors.
And regarding the order book, since a long time, we have not won any orders. So we are still sitting with this BEST and MSRTC orders only. So from PM-e Sewa we could not able to capture any share from the same e-Sewa tender. So what is the pipeline of tenders? As of now, we participated and waiting for the awarding of tender. And what could be the number? Could you please clarify on this?
As you rightly said, currently, we have a order book of 10,200-plus buses. We haven't stopped our participation to the new e-bus tenders. We are active. Recently, we have participated in HRTC, Northwest Karnataka tenders. And while our current order book is substantial, the current commissioning of the new plant is geared up precisely to ensure we meet the future demand seamlessly.
And as you rightly said about the PM-e Sewa, I'd like to ask my colleagues to clarify.
So as rightly said by Sharat, sir, we are under negotiations for the e-tenders of HRTC as well as NW Karnataka. HRTC about 350 buses and NW is about 350 buses. And we have a good order book of 10,200 buses. And in recent PM-e Sewa, the players are announced as L1, but the rates yet to be finalized and as well as the LOA yet to be issued.
So in the PM-e Sewa, one of tender, we are L1, right?
For the PM-e Sewa, we are not L1. We have separate orders from HRTC and NorthWest Karnataka where we are L1, we are negotiating.
Understood, sir. So other than these tenders, any other big tender who have participated and it's under pipeline.
So these are the 2 which are in pipeline, and we have significant order book to execute, more than 10,000 numbers.
So what is the current month run rate? How much have been produced -- how much buses produced in this month that we are...
See, basically, month-on-month is being price sensitive. We are not giving any guidance. Only quarter guidance, we have been giving. And then we have given the revised target of about 1,200 numbers in this quarter 4. Over a full year and quarter, which includes about 400 plus numbers for quarter 4.
Okay, fine. But the thing which we are worried is actually, some of our competitors are sitting with some higher capacity and they are able to execute the orders very quickly as they have already 5,000 capacity. But being a 10,000 backlog is continuing since a long time as the order execution is on the low sales and we are not able to add any further orders to the order book, significant orders, somewhat 300, 400 would be okay. So this will, at one point of time, maybe will be behind the competitors, it seems like that. What is your take on that, sir?
Basically, we are focusing on our business and we are seeing sustained growth over the last several quarters and we continue to strive to have a sustained growth in the near future as well. And in the initial note, I mentioned about working on new technologies. As far as we are concerned, we are a pioneer in bringing new technologies. With the advancement of technologies, we are confident that our products will definitely stand in the market compared to everybody. So -- and as far as the -- so continuously, we have been growing. So there are -- and we are definitely striving to have business growth on a sustained manner.
Next question is from the line of Ravindra, an individual investor.
Yes. My question is answered from the previous caller. Yes, that was my question.
The next question is from the line of Nitin Gandhi from Inoquest Advisors Private Limited.
Just would like to understand the AMC. How does it happen? Are you having AMC for all the buses supplied? It starts after how many periods warranty? And do they have the option to take their own management of vehicle fleet or everything comes to you for some certain duration? Can you share some thoughts on that?
And the second question is, this CapEx, which you said is for increasing to 5,000, that's 400 per month. But you said that overall plan is to reach from 400 to 800, that's on gross 10,000 a year. So what will be CapEx for that?
Yes, sure. See, our business model is gross cost contract wherein as an OEM, our scope is to manufacture and deliver the buses and take care of the after-sale service. So this is how the model is structured. And the -- typically, the project duration is about 12 years and for the entire 12 years Olectra is responsible to take care of the maintenance. Based on mutual agreement between the fleet owner and Olectra, we fixed the price per kilometer and based on number of kilometers run, the revenue is recognized.
So as far as the warranty is concerned, that is the part and parcel of the AMC arrangement. So wherein we have back-to-back warranties with our vendors for a specific period and specific kilometers. And as far as the CapEx is concerned, as you rightly said about the initial capacity of about 400 buses, we will be incurring this CapEx outlay. And the civil part is taken care in this outlays. And as far as the battery equipment is concerned, we expect maybe about INR 100 crores to INR 200 crores increase to 10,000 numbers.
That's good to hear. But the AMC, can you share -- do we have -- because actually, so far we have supplied 2,500 buses, correct? So maybe by this time, even if it's the first year without AMC, I assume that's the minimum duration after which AMC will start. So the next flow should every quarter keep increasing by whatever sales has happened 6 months or 1 year back, and that should be the flow to keep adding, right?
Yes. As the bus fleet increases, the supply increases within the month after the buses are in operation, the AMC income starts based on the actual kilometers run by the fleet. So as the fleet number increases, the AMC income also proportionately increase.
So for clarification, they will remain aligned with us and they have -- after that, they will have the choice to take some of the aspect. If at all, they want somebody independently setup the AMC...
Basically, after 12 years, the contract gets extended. We have not actually -- we do not have any plans to beyond the 12 year period as of now.
Yes. I'm just assuming some hypothecation. So that's why I was trying to put some terminal line. Anyway, nice to hear. Maybe some more questions, I'll come back to you.
Next question is from the line of Sudhakar Rao from Transparent Securities Private Limited.
I logged in very late. So please bear with me if I'm repeating any of the questions. First of all, congratulations for launching new bus with blade battery technology. Okay. Now coming to the numbers for this quarter, I was expecting much better numbers on a sequential basis, but it did not happen. I think many of my previous speakers must have also be perturbed by this not ramping up the production on expected lines. Even the last quarter, you had said that we'll be doing at least 1,000 in the second half of the year, but that still seems to be not possible as of now. So that you can answer me.
And the next question is, when will the fully automated robotic plan be ready? Because it is high time even the contract, EPC contract to the domain Megha was given in way back in July '23, with the completion period of targeted 12 months, should have been over by July '24. I wonder it's 1.5 years and MEIL is -- they are the masters in executing huge projects and they are not done for its own subsidiary. Any reason in procurement, your robotic AI based machinery or any other reason? Please, you could clarify on that.
Yes. So basically, your first question, we have clarified to, I think, 2, 3 investors. Again, we will clarify. So as you are aware, we are in a continuous process of streamlining the production as we are ramping up the operations in a new plant. While the initial guidance was about 1,500 EVs for this year, we now foresee a revised target of 1,200. And this adjustment reflects our commitment to prioritizing quality and operational efficiency over share volume. And as you are seeing rapidly on a sustainable basis, we have been growing. And we would like to keep this sustained growth and creating long-term value for our investors. We are fully committed. And the production numbers for the first 3 quarters have set the solid base. And with the upcoming ramp up, we are well positioned to achieve this revised target.
This quarter, we have invested time in optimizing our production processes and scaling up our supply chain to ensure smoother execution for significantly larger orders in the future. And as far as the plant CapEx is concerned, it will work. As far as the MEIL target is concerned, the civil construction for Phase 2 is in advanced stage. We expect that to be completed in the next 3 to 4 months.
As far as fully automated robotic is concerned, it may take about 6 months' time because we have negotiated with vendors and then we are in the advanced stage of placing the orders. So -- and it will take about 6 months' time for setting up the plant. The Phase 1 plant is a conventional one. Phase 2 is with robotics.
What is the capacity of Phase 1?
It's about 200 numbers per month, about 2,500 numbers. The civil is almost getting ready and we'll be reaching about 5,000 numbers in the next 4 to 5 months' time.
The 200 per month is the same as the old unit at Jadcherla that was shifted. That was also about 1,500, I think 1,500...
No, it as not 200 numbers. It was about 1,500.
So this addition of new capacity is in phases or separate lines for each unit or how does it take place?
We have actually 2 body shops, body shop 1 and body shop 2. One of the body shops, we started where we partially commenced the operations in this year. The other body shop is in advanced stage of getting completed.
I wish it was read up because already we have huge orders and competitors are delivering more numbers. And already, we have incurred about INR 2 crores of penalties for delay. My worry is will it enter -- hope it won't end up in cancellation or anything like that.
Okay. Coming to my other question, the government of Maharashtra has announced that at it's Davos meet that is has entered into MOU for -- with Olectra to invest up to INR 3,000 crores in EV-related projects. Is this BYD passenger car unit that is being planned?
Sudhakar ji, this is Hanuman here. I think it has nothing to do with the BYD's car facility. And as a part of business exploring the further opportunities, just we have -- we registered our expression of interest with them in the form of nonbinding MOU, which is related to EV business only.
So your answer may be similar to my other question. In the last AGM, our CMD spoke about the company's plans to diversify into battery energy storage systems, BESS. And incidentally, at Davos, MEIL has signed an MOU with Telangana government for investing up to INR 3,000 crores for setting up a BESS. Am I correct in guessing that it will be done by Olectra?
I think from the MEIL side, what they have signed actually, I think we have no role. And prima facie -- and coming to the second part of your question, as a part of -- for the BESS, as a part of exploring the business opportunities, we are striving to know, obviously, we have to know what is the opportunities and financial and operational feasibility. Once we get the clear cut reports, actually, the Board will take final call and appropriate time, we'll come back to the investors.
Okay. Lastly, as you are aware, this is a silver jubilee year for the company. So the best way for you to reward all the long-term shareholders who have been eagerly waiting for your ramping up production and et cetera, it would be best to reward them by achieving your full capacity of 10,000 crores -- 10,000 buses in this year at least.
Silver Jubilee noted. We noted and as you are aware, we are striving to move forward in that direction only. I hope you understand.
That is your best reward, please. If the promoter also listens to the shareholders' hopes, maybe it will be good.
Noted, noted your good word.
The next question is from the line of Gaurang from Utility Unified.
So recently in Delhi, we launched the BYD blade battery technology, and I was listening to the interview of our MD, K.V. Pradeep sir, wherein he mentioned that the bus can travel approximately 500 to 700 kilometers. So are we going to use the same technology for electric trucks as well?
See, as of now, basically, we are in the process of now homologation. It will take about 6 months' time. Initially, to start with, we are -- we will be introducing in buses. At appropriate time, once we have more clarity, we will come back to the investors.
Okay. So are we going to use this BYD blade technology in this 10,200 buses order that you mentioned?
We have to basically come back because after we complete our homologation, which may take about 6 months' time. So it's a business decision which we may have to take.
Okay. And I'm assuming, this would be a perfect product fit for Fresh Bus, who is one of your customers into intercity business. So have they shown any interest in this particular technology?
We will come back at appropriate time because lot of private players, we have been receiving continuous inquiries because of the advancement in technologies and because of the larger number of kilometers which it can run on a single charge. So a lot of inquiries have been received and we have been receiving. We received a very, very tremendous response and from -- and inquiries from our visitors. We are confident that this platform will definitely enhance to build our presence in the private segment as you rightly said.
Yes, yes. It's going to be the USP because I'm studying the competitors and no one has this excellent technology of going so long, like 500 to 700 kilometers. So I think it's going to be the USP and the earlier that we get into this, it will be beneficial for us.
Yes. So my last question is with respect to electric tippers. And in the last quarter, I had mentioned about Borivali-Thane tunnel, which is being constructed by Megha Engineering basically. And I had shared one article where they said that more than 1,000 to 1,500 tippers would be required. So have we got in touch with their team in terms of if we can deploy electric trucks for that project?
So as of now, actually, it has not progressed. It remains status quo. So we keep exploring and we are doing continuous demos and trials at various project sites. We hope to receive orders in the near 6 months, 1 year. And our R&D team has been working on introducing various other products in the truck segment. At the appropriate time, we will come back and then we will -- as the traction happens because as of now, as you are aware, it is at nascent stage. So our option from conventional to EV truck segment is taking more time. So we expect the traction to happen near 6 months to 1 year.
Okay. And any order book that we have for electric tippers right now?
Come again?
Do we have any orders for electric tippers in hand?
So as of now, we are receiving a lot of inquiries. We have been doing a lot of trials. As of now, the orders -- the inquiry to order has to fructify, we are expecting in the next 6 months' time.
Next question is from the line of Saji John from Geojit Financial Services Limited.
Congratulations, sir, for a good set numbers. Sir, actually, my question is regarding any order that you participated and you could not become an L1 bidder?
Mr. John, it is not clear, actually.
Yes. Sir, my question is regarding any order book, any order that you have participated and you could not win that order, maybe you cannot become the L1 bidder?
It's a continuous process. So we have been bidding and see, there are competitors in the market. So wherever we could not get the orders, the others have won the orders. But the opportunity for EV segment is quite enormous as we have discussed in the past. And we have actually hedged in terms of technology compared to others. As of now, we have -- as our buses are clocked more than 30 crore kilometers on Indian roads.
So if I ask you, sir, on the e-PM Sewa services, any order that we have missed?
One minute, sir. My colleague will clarify on the PM-e Sewa..
Sir, as you see, we have been bidding strategically by keeping the good margins in mind for the whole Olectra as well as for the strategic partner, EVEY Trans Private Limited. So we have good orders in place. And as a continuous process, we will be winning few tenders, and we'll be L2 or L3 with few tenders. So this particular PM-e Sewa, we haven't won any orders. But if you see in the previous orders in BEST or MSRTC, the largest products we have won. And we are also in L1 for a few other tenders also in market. I think I hope I have answered your question.
Okay. Fair enough, sir. Sir, my next question is regarding the order book, the current order book that we have. Around 2023, like if I go by the numbers, like you have around 8,000 kind of orders that you have total. And you could execute only around 12 to 18 months that you need to execute. So like how much is the penalty like we have to be incurred like going forward?
I think we have discussed in the past, we have clarified. We'd like to clarify again. So basically, this industry, EV industry is at a nascent stage. And there are under this GCC model, the scope and responsibilities are defined, wherein the operating company, which has won the order has to deliver the buses. And from the STU side, they need to arrange depot space and charging electric power connections. So these are the two scope of work. And for example, in the case of a large order like in MSRTC, almost 200 depots are required to be open. So it's a continuous process. They need to allocate space and create the depot space. And accordingly, we will manufacture and supply. And it is mutually beneficial for both the STU as well as us as it is operationally in terms of revenues, it is highly remunerated for the STUs. As of now, no penalties have been charged to Olectra.
So I mean there is a scope of negotiation is there, right?
That's correct. Absolutely.
Yes, okay. So on the truck side, sir, you don't have -- you don't have any fee for this quarter, right, sir?
As of now, we have not actually sold any truck tipper this quarter. We expect orders to come in, in the next 6 months to 1 year as we are doing a lot of trials and demos across various project sites of infra companies. And the inquiries are -- fructification of inquiry into an order, we hope in the next 6 months to 1 year.
Okay. So sir, next year is where you will be having more numbers coming into the work, right, sir, in the next year, right, we can hope that you will be delivering on your number orders?
Yes, correct.
Next question is from the line of Varun Gupta, an individual investor.
So I think congratulations for the great set of numbers. And I think the whole Olectra team has to be appreciated and congratulated because I remember 2020, we did around INR 200 crores of sales or revenue year-end, probably, we will touch INR 2,000 crores this year. Hope so. So I think your team should be appreciated for that.
So having said that, I have a couple of questions that I think you already have clarified. But again, this HRTC tender, is it the same tender which we got L1 3, 4 months back and still we haven't got the orders?
Yes, correct, you're right.
So my question is that how it is working out even when we say L1, we are -- that is lowest bidder on price point. Then they have further negotiation and they are taking 3, 4 months just to give order. Is my understanding is correct?
Yes, yes.
Okay. And [indiscernible] the case with your Karnataka tender.
In NorthWest Karnataka also, the tenders recently opened, we were L1, and we currently -- the orders are under negotiation.
Okay. My last question. See, in this last 1 year, I don't know if I'm correct or not, but it seems that the government orders -- the pace has become slow. If you remember that CESL tender, the big one, I think, 3,800 buses, it started last Feb. We are again on Feb now from tomorrow, and it has not closed. Any reason the government has gone slow or how is the overall scenario looking from the government side? And adding to it, how many tenders or how many buses are we like we have already submitted the bid? These are the 2 questions.
I think as of now, I think if you ask us about 30,000 plus buses orders has been finalized in India. And we have won about 12,000 buses till date. Out of which, we have delivered more than 2,400 buses. And we have -- as of now, we have about 10,200 buses order. And if you -- like you said, the CESL and other orders which came at later stage, which are various STUs, various OEMs have participated in those tenders. And those tenders are not yet finalized because of multiple results. There were no -- a few OEMs are asking for the payment security mechanisms and a few OEMs are in payment security mechanism where the government need to confirm the -- or give a guarantee on the payment. So due to these kind of issues, the finalization of LOIs and signing of agreements were pending.
Got it. So how many tenders we have already submitted the bids? Like if you have a ballpark number, 1 to 10, or the number of buses we have submitted?
If you -- since the inception of the e-bus division, we have...
No, no, no, which we have now submitted -- which are not we have received, which is under submission and in progress.?
Okay, which is under the submission and progress is like HRTC, yes, we have submitted, and we are waiting for the final negotiations to happen. And we have -- we are L1 in NW Karnataka and there are other tenders like -- and there is a [ one 40 ] bus tender from Nava Raipur and there is a tender for 500 buses from IRT and there is a recently quoted tenders from Rajasthan state STU, which is about 200 buses. And there is a tender from UPSRTC, which is NKT, and all the OEMs in the country are asking this to convert to GCC. Yes. These are the tenders which are....
Ladies and gentlemen, please hold while we reconnect to the management as the line has been disconnected. [Technical Difficulty]
Ladies and gentlemen, thank you for patiently holding. We have the management reconnected. Over to you, sir.
Sir, we have Mr. Varun Gupta, waiting for the answer.
Yes. Mr. Varun, we have answered, I think.
Yes, yes. I think you have answered the question, and thank you so much all the best for next quarter, and I hope we touch INR 2,000 crores this year.
Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to the management for the closing comments.
We thank all the shareholders who have participated and have been very supportive in your company's growth journey. And the patience and the faith reposed in the company, and we expect good growth on both in terms of consolidated revenue and profitability in this financial year. Thank you very much.
Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.