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Genus Power Infrastructures Ltd
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Ladies and gentlemen, good day, and welcome to Genus Power Infrastructures Limited Q2 FY '25 Earnings Conference Call hosted by Emkay Global Financial Services. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Ashwani Sharma from Emkay Global Financial Services. Thank you, and over to you, sir. .
Yes. Thank you, [indiscernible]. Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Kailash Agarwal, Vice Chairman; and Mr. Jitendra Agarwal, Joint Managing Director. I shall now hand over the call to them for the opening remarks and post which we will open the floor for Q&A. Over to you.
I got disconnected. So have you started the call now? .
Sir you are connected to the main call we proceed with the introduction.
Yes. Thank you. Good afternoon, everyone. A very warm welcome to the quarter 2 financial year 25 earnings call of Genus Power. At the very outset, let me wish everyone a very Happy Diwali in the prospect of the new year. The results and press release are uploaded on the stock exchange and company website. I hope everybody had a chance to look at it. Our revenue stood at INR 487 crores presenting an 88% increase compared to INR 259 crores in quarter 1 financial year '24. This growth was driven by robust execution in our Smart using segment. Our EBITDA for Q2 was INR 81 crores, up by 32% compared to INR 25 crores in Q2 '24. The EBITDA margin improved by 24 basis points to 16.7%, driven by the positive impact of operating leverage, enhancement in operating margin was further bolstered by our initiatives to optimize operational efficiencies and cut costs. This was achieved despite the rising employees and other expenses driven by our ongoing efforts to explain the workflow and strengthen systems in preparation for the execution of the substantial order book we have secured. We anticipate sustaining our operating margins and similar levels going forward.
Our PAT stood at INR 58 crores, an increase of more than 5x compared to INR 11 crores in Q2 '24. This [indiscernible] impact also includes a onetime gain of INR 11 crores recorded under other income stemming from the resolution of an arbitration segment related to a government project executed in 2007 to 2009. As on 30th September 2024, our total order book, including all and GIC platform stands at about INR 31,776 crores net of taxes. And these concessions are for 8 to 10 years. Our robust order book is strategically positions us for sustained growth in the upcoming quarters. We anticipate full-scale execution to accelerate from quarter 3 '25 onwards. We are optimistic about achieving our steel revenue on a stated revenue target of approximately INR 25 crores for financial year '25 with an expected EBITDA margin of about 15% to 16%.
We are well prepared to navigate potential engine associated with the large-scale execution of projects, while ensuring proven cost management and effectively meeting financing requirements. We have also been receiving a significant number of inquiries from [indiscernible]. And a lot of the NOIs are received. But we have a policy not to announce publicly the same on our -- on account of our company policy, which does not consider LOIs as part of active order book. We are exploring new opportunities in gas and motor metering markets, both international and domestic. Overall, financial '25 or great potential for us as we capitalize on our robust order book, strategic partnerships and strong market position to drive substantial growth. We are confident in complete future prospects, fueled by our dedication to operational excellence, innovation and sustainable growth. We can now open the line for Q&A.
[Operator Instructions]. We have the first question from the line of Mohit Kumar from ICICI Securities.
And congratulations on a very good set of numbers. My first question is on the employee expenses, price census has seen a sharp jump right. Have you said that given that you engage order, so we do expect that some growth. But the question is, where do you think this number is settled down in '25 and '26 .
On these employee expenses, these numbers will further grow because not only our execution is increasing and which will take a much bigger picture from the cumber onwards. Lot of numbers will start coming. Apart from that, a lot of development that is also going on as we have mentioned earlier that we have one company which is doing HFRF and also in-house the country also announced. Because of that, a lot of employment trend has been enhanced on a gross. So this number will further grow I cannot give any number right now where it's going to get rental. But yes, next 6 to 8 months, I see it continuously growing. Then it will take a then.
But directionally, that actually systems for the number...
Sorry for interrupting, sir. Mohit, sir, if you can please be more loud?
A bit out better now?
Yes.
So my question is, this INR 63 crores of employee expense, would you say that you can't give a number, but some sense whether there were INR 90 crores, INR 100 crores per quarter, some sense of that?
I don't want to give any number right now. But yes, this will increase for next 6 to 8 months that it becomes [indiscernible].
That is what I can say answer that this -- there are a lot of third-party orders which are floating around, but we haven't seen you winning being anything as of now. So is it -- are you looking at third-party order now given the fact that there are no bidding is likely to have the way say the bidding intensity will listen down from outside.
So we are definitely looking at tri-party orders, and we are continuously supplying meters to all our customers. And we continue to grow that business also. We have always been known as the best meter manufacturer in the country. So we continue to maintain our capability.
Sir, last question, sir, on the revenue kind of target. I think you gave INR 2,500 crore target you've given, and we have cut INR 900 crores less than INR 900 crores in the first half. So the state required for the H2 is quite steep.
But we are confident that we will achieve it. .
The next question is from the line of Adit [indiscernible] from Axis Securities.
Congrats for a very good set of also last question is with respect to our order book. How do you see this shaping since H2 and next year? Or is it now at the peak or do we expect -- how is the order pipeline on extent? Hello. Was my question audible?
Sorry?
Line is on [indiscernible].
Sir, my question is with regard to order book. How do you see the order pipeline going higher in H2 and next year? Or is this 31,700 order book, which is now at the peak or we expect further orders in H2? Are you there?
The investor is connected with us on the call. Sir, please go ahead. I think we. Is not clearly or something is wrong with the line.
I suppose, or as muted is line from his side.
Ladies and gentlemen, we will wait for a moment, and I will reconnect the management once again.
Many lines to produce [indiscernible] yet not connected just called him on fold and in fact that I'm not committing. Hello. Hello. Hello
[indiscernible] are you there? .
Yes, I can hear you, sir.
So what's the level what's going on? I can't understand just talked to saying that he's not connected.
We have [indiscernible]. This is online.
Okay. Okay. we can again connect to excess securities and we have their question again. Am I audible now? [indiscernible] are you there?
Sorry for the..
So why not respond?
He is back on line with us.
You connect excess security, please and extra security can have your question, please. .
Yes, I am on the line. Shall I proceed with the as...
Yes, yes, please.
Yes, please. Sir, my question with regard to our order book. So how do you see it shaping further in H2 and maybe in the future? Or have we now almost at the peak Well, currently, there are no light tenders in the market. And so I don't see that order book increasing for the next 6 to 8 months. I don't see this as a peak because only 60% of the countries is covered under the smart meters in terms of product tenders has been floated orders that we decided through tenders are still running. So 40% of the market is still remaining I will start a tender will start coming from the quarter 1 of next financial year. Understood, sir. And sir, my second question is now any guidance you can give for FY '26 with respect to top line and margins?
So in terms of guidance here also we said we expect a 50% growth in the top line, and we maintain the same EBITDA level of 15%, 16%. So I don't that we maintain the same [indiscernible].
50% top line growth in FY '25 over INR 2,500 crores in FY '25? Understood, sir. I have 3 more questions, I'll fall back in the queue.
Thank you so much. We have the next question from the line of Yash from Salient Asset.
Sir, I'm a little bit new to the company. So the first question was I think you've given some acceleration on the volatility of other income, right? And this quarter as well, we've seen almost INR 63 crores of other income. So how -- if you want to model this, how do we sort of go ahead thinking about this number?
So basically, you have to understand that this is the -- our income is basically lost number rather than an actual number because this number again has come due to the company is holding some shares in the trust and that is the value of the trust to shares. So when you see the consolidated numbers, there is other income of almost INR 20 crores, INR 21 crores more than the stand-alone one. this INR 30 crores, INR 31 crores is basically because of the value of the shares in trust that has been increased.
So we cannot give any figures on that or a guidance on that because that rely depends on the market. or next quarter, you will see there might be a loss because of that. But these are all regional numbers rather than external numbers.
Okay. Got it. And so given that we've got a very strong order book, almost INR 31,000 crores, and I understand this is over a period of 8 to 10 years. So at least in the near term, FY '26, I was thinking that we conservative on 50% growth? Or do you think that if things fall in place, we can grow at a higher pace than that as well for FY '26?
Yes, I don't think so we have been conservative more on realistic because all these projects, which we are doing by 8 to 10 years, we take a certain time to come to the [indiscernible] that is the reason we are mentioning.
Sure. And sir, my last question is, so interest cost, I mean, we really taking more debt next year as well. So it run rate INR 29 crores in the quarter. We sort of maintain this or this might go up next year?
It will go a bit and the execution will happen, it will go a little bit up also.
Okay. So can we assume about INR 150 crores for FY '26, round about that number? .
It's not INR 150, INR 140, INR 135 will be the good number. .
We have next question from Haven Cara from Enam Holdings.
Yes. Congrats on [indiscernible] book and improving numbers both on the top line and the margin and strong guidance. Sir, just a few questions. One is if you can update us on your expansion plan from INR 1 crores to INR 1.5 crores smart meters where that's time Second, also, if you can give us what does it the monthly run rate now of smart meters because you are maintaining a strong guidance of INR 2,500-odd crores as compared to INR 900 crores in the first half. So basically, we require almost like INR 1,600 crores in next 6 months, which is like INR 250 crores to INR 300 crores per month kind of a number. So whether that October, there has been a substantial ramp-up in installation of smart meters or how our production and production of smart meters as well as installing in our smart meters, I said, run rates abstentially gone up in the September, October, which month or where it would be ramping up.
So on the manufacturing expansion plan, it is a continued. We are working about a new plant in [indiscernible] started almost started and it will be consuming in the next 1 month. that extension plan is more or less on under the place and we will be comfortably acting 1 million meters every month. So that is taken here. In terms of execution, even October number, a lot of delays have happened because of the flexible and they were very well known you will see the significant jump in numbers in mid-November onwards. It is very well placed. It's visible to us and giving we are confident of achieving that. So not all these run rates, I understand mathematically this run rate will look very, very substantial from -- especially in the fourth quarter, but yes, you will see that happen.
Right. And if you can share any number on quarter 2 and first half smart meter volumes?
In terms of manufacturing or in terms of information. If you can share both?
In terms of manufacturing, exact number, I need to -- is that we have done around 2 million meters in quarter 2 installation. [indiscernible] has been 800,000 meters.
Installation is 800,000?
Yes.
Okay. And quarter 1 would have been, sir? Exact number, I need to -- our first half cumulative number if you have that is also number without having come.
No Problem. First half number also?
Okay. No problem, sir. Other question is on the fund infusion in the platform, how much has happened per date? And how much you are planning this year and next year?
So basically, the resident, we will -- we are providing you the link for the Genus platform also. And you can visit the site of that platform and you can get all the information, the Genus also and the other GIC shares also. So that will be a better idea of getting all the numbers at one go. Rather getting and regarding next one and one of next year and next to next year, whatever do you see that -- we have to understand that the total outlay of will be around $210 million. And right now any million or $3 million that has been invested by June. So next year, it will be around 40% of the remaining -- what we have committed will be there in next year, again, a 40% number .
To 40% in '26 and 40% in '27.
Remaining [indiscernible].
Remaining in '28. Okay. And this is for your 26% share. This is your equity portion...
This is what for our equity portion. Yes.
So proportionate amount will be put in by GIC. Almost 3x of that basically.
Yes. .
Right. So both will simulate as they put or there are the different time lines for...
Both will be simultaneous in the [indiscernible].
Okay, okay. So basis...
This information I want to provide to all the call attendants that even be providing the link already has been provided to the sites also if. On those links, you can go and visit side of platform and get all the information regarding the planform.
Great, sir, great. sir. Okay. And so just -- I'm just summarizing you said INR 210 million, 40% amount each would come in '26 and '27. So that is almost like the you...
These are again all broad number that you have...
Broad numbers I'm asking broad number on...
Broad numbers also, you understand that this is on the basis for of 50% debt and 50% equity in the platform. if there will be any change in that ratio that increases in the platform, this number will come down. .
Sure. Sure. .
Then the determine been [indiscernible]? .
So it's not from our side.
I don't know there's a big miss.
Okay. And the other numbers, sir, what has been the run rate in...
Can we take other questions also we can be I have a last one.
I have a last one. Export run rate and the inquiries in the export market.
The export run rate is a bit slow in the first 2 quarters of this financial year. And in terms of inquiries, we are working on some large potential customers. And we see there is a very good traction. So we see export business also getting in very good shape from both orders.
We will take the next question from the line of day from [indiscernible] Avendus Park.
So just wanted some insights on the top line guidance, you mentioned INR 2,500 crores. But if I look at the working capital, that has substantially gone up which will lead into a negative cash flow. So I just want to understand, as top line on how exactly will this look, sir, in terms of cash flow, how we cash flow book? Will working capital get better? Your insights on that.
Just to give an idea, that all these MISProjects, the initial flow of cash is very, very high. So all these projects are ramping up and a lot of money is being infused currently. With the same number which we have introduced currently, you will get this revenue in next quarter onwards. So a lot of investment happens in advance. That is why you are seeing a lot of influx of the cash flow.
Sorry for interrupting, sir, your line is not clear.
Am I audible now?
Not very well, but yes.
One second. Give me 1 minute. .
Sir we can proceed with the next question, and you can rejoin the queue.
We have the next question from the line of Sandresh Malpani from Mivisa Investment Adviser. Please go ahead.
My question is related to previous participant only. So my question is regarding the high trade receivables. So it's more than the half yearly sales which we have done. So just to understand the perspective that since we are selling to the platform, and we will be receiving our payments in 60, 75 days. So why are these receivables so high?
These receivables are very high because even what the platform is, once we install the needle, we have to do the site acceptance test in one like the acceptance on the project goes on life because the project goes live, then you start increasing CapEx payment from the platform. And all this of a minimum 90 to 120 days because there is a process of doing at the time line from 45 days compared to the use management, recovery system. So these are all the guidelines given in the RD Accordingly, these projects are running. So that is why all these products are starting initially and most of them are under the FIT and SAP. So operation goal takes time. That is why we are also initially any project which is getting started. There will be a lot of influx of the capital initially. But after 6 to 9 months, you will see this working at getting normalized. .
Okay. in with respect to that only, if you can get a number on the number of projects that have gone live for like since our content.
So currently, our four projects are already live, in Assam and has. And the projects which have already been effort to go live, which will take 2 to 3 months to become live, will be intonation more projecting here. All the products for us, a lot of these projects becoming go live from January, February.
[Operator Instructions]. The next question from the line of Dash Solanki from Axis Securities. .
Sir, my question is regarding the installation target. So from the national smart grade meter effect, you can see that out of the INR 25 crore smart meter installation, INR 22.2 crores have been transcend and INR 12.7 crores have been awarded. So do you have any idea on the balance tender like what the end by when do we expect this tender?
So all the INR 1.7 crores has been already sanctioned, and there are a lot of contracts which are coming that there are tenders with a live the tenders which are to be quoted in next to months as I said earlier, influx of these tenders will happen from the next financial year onwards. I don't see a lot of orders being finalized now in this any orders significantly being finalized in this [indiscernible]. And all these targets are you all this target of 27 months, they have been delayed from the field acquisition side also. So it is true in the due course of time, it is happening. .
Understood. So you are saying that even in the -- when to get new orders, even our order book will get new orders probably from the next financial onwards.
Yes. This financial year, I don't see any significant orders getting decided.
We have the next question from Dave from Avendus pack.
Yes, can you hear me now?
Yes, please.
Yes, just -- my next question was just on the revenue recognition front. So can you just help me in terms of understanding how exactly does our revenue gets recognized once you pick on a project, et cetera? So basically, that is great as we supply to any other words we are supplying everything to the vendor to the platform. And here is booking the revenue as we are booking [indiscernible]?
Yes. So basically, we have to understand very clear that basically last this platform, is the AMI step like we supply to others, it is the same we are supplying to the platform. The only thing here is that we are doing all the work for that platform. So for dealers revenue recognition is the same. There is no change in that. .
[Operator Instructions]. We have next question from Amit Kumar, who is an individual investor.
So my question is we have long-term borrowings increased from INR 78 crores to INR 494 crores as on 30 September, and we have INR 759 crores of bank and cash balances. So just wanted to understand why we are using debt if we have a sufficient amount of bank and cash balance available. This is my first question.
So your first question, let me answer your first question. So whatever this long-term net debt has been increased in the for the hard project, a company is doing all gels power balance. There is only 1 project which is being done, and this is a 1, 1.5 year old project with [indiscernible] first project we is -- and that meant on the balance sheet on Genus power not only balance sheet of platform. So here all the investment for this particular project. even the CapEx -- initial capital outline everything is doing from Genus. So basically, that is the amount that has been taken by U.S.A. and tees us for net project, number one. And number two, regarding the cash and cash balances, company has a policy to keep some cash and cash balances always because we are increasing our in multifold always you never know that there might be some pickups coming. So always -- as a policy of the company, we want to keep some buffer with us. So that whenever the point.
Okay. And second question is the INR 27 crores of receivable as on 30th September and INR 900 crores of revenues for H1. And [indiscernible] more than half year revenue. And in previous con calls, we guided that receivable days in seasonable days will be reduced as platform will collect the money. But I can see cash flow operation is also negative. So just want to know what are the debtor days as of 30th September. And actions we are taking to improve our receivables and cash flow from operations?
So like if a year also, all these products are getting started almost all states, whether UP subsidies, all the places of where we got orders in the last 6 to 9 months, these projects are getting started. And usually, is a lot of capital infusion happens to use projects. We have to supply the meter install them or then for the SAP in on their operated 3 to 4 months to become go-live. So that is our initial capital outline.
Not made any call notes, no. Yes, sir, to listen.
So that is the reason there is a huge amount of that has been seen. 6 to 9 months down the line, once we own most of the projects are go live, then you will see improvement in the [indiscernible].
Okay. My last question is, as I can see, there is a substantial increase in employee cost. Could you provide the number of employees as on 30th September was this at about 24, 30th September 2023.
I don't have it exactly right now, but we can.
We have next question from [indiscernible] from Emkay Global Financial Services.
Currently at capacity of 1.1 million per month, and we have been planning to increase this to 1.4 million. So just wanted to know what is the time line on that?
No, we are not to increase the opposite to one. I could not get your question. Have been always maintaining that we are we...
So we have the [indiscernible] million for an expansion if I'm not wrong, right?
There is some problem in today's.
Am I audible?
Please go ahead.
We have always maintained that we will create a capacity of 15 million meters only we are almost there.
We do see the operations commenced for the 15 million by this quarter or from Q4 August? From Q4 onwards, we will be comfortably manufacturing more than 1 million meters monthly. And whenever needed, we can easily extend this.
Understood.
And is the target where we wanted to reach next couple of months, we will reach the target. .
Understood, sir. My next question was, I understand if you can't disclose the third-party orders that you have seen setting. But I just wanted to understand the proportion of the total order book the third-party comprises of? .
There's much, much less because of the early orders with the platform. very few MSPs we are supplying [indiscernible] there, the order is only for the supply of meters. So in terms of value, the proportion will be very, very [indiscernible].
So we can maybe take a ballpark of maybe 5%, 7% of the total order book is on a ballpark basis?
I think 10% will be a safe number. understood, sir.
My next question was, we have [indiscernible] -- I mean, a policy of the government, which has been focusing a lot on inspiration of solar capacity and residential houses. So I just wanted to understand, since we do also manufacture net meters. Are we also seeing any traction from that end, if any? .
We are definitely seeing a traction on net detail, but clearly and gradually all these net meters will convert to smart features because the smart pet has both the percentages. So there a fraction in meters, but that is very, very small period of time. I think most of these TMCs now smart [indiscernible].
Understood. So eventually, we do see this coming into the SGM itself? Or do we see this as a segregated market going ahead? .
It is a segregated market going ahead where I mean in the urban market. And sometimes, there are a lot of discounts, which also buy it directly from us and then supply it to the people [indiscernible].
We have next question from the line of Sajal Mukhija from Growth Ventures Limited.
I actually have just one question, sir. So if you could break a current order book of INR 27,776 crores into the MISP O&M work that we are doing and into the term manufacturing. Can you just give us a split of this order book? .
So currently, I don't have the split of ballpark will also be final.
Yes. .
So ballpark, we have always maintained earlier also that it is 45% is supply of meters and installation around 30%...
This is not the question, I think. Can you please again date the question? Should I repeat the question, sir? Yes. So I just wanted to understand the breakup of this order book into the MISP O&M work that we're going to do over the next 8 to 10 years. and the meters that we're going to like that their manufacturing and selling. So I just wanted to understand the breakup between meter actual meters and the MISP work.
So I think I understood it rightly, and this is what I was delivering in the total order book whatever we are supplying to the platform, that order book can be divided into three points. So around 45%, 50% is the meter of supply and installation percentage there are different contracts at different pricing 2025 remains with the platform. So this is how the breakup will happen. And out of this 3,276 order book, 90% is from the platform. That's all from my side.
We have next question from the line of Akshat Deo from Veeva Commercial Limited.
I wanted to know more about the promoter shareholding I'm noticing again that in this quarter then, we had some reduction in the promoter shareholders. I just wanted to know why?
So basically, yes, there is a reduction in promoter shareholding from last quarter. So promoters have not in some new big investors like Nomura to better shareholding list and all. So Nomura just wanted to have some shareholding in the company and they have closed us and we found a very good name, very good investor who can be very useful to the company's future. So we dilute some shares today.
Can be the entire 3%? Almost? What percentage is [indiscernible]? What percentage is special.
Total was around 3%.
Okay. So all 3% was sold to Nomura?
So basically, most of that has gone to some Nomura.
Okay. Okay. Are you planning on any more stakes here? Not right now. .
The next question is from the line of Anurag from Multi [indiscernible]
Sir, the initial part of the call, you mentioned that we are developing RF technology and HGS technology. So could you just throw some light on that? And if once that is developed, could that lead to increase in margins? .
So it is only does not, as I said earlier, because of this, our manpower costs are all increasing significantly in last 2 quarters, and it's been further to increase in the next few quarters because we have one company which is doing all the technologies being designed and developed in and implemented by us. So SES is already getting implemented. India is already getting implemented. That is by the increase in number of people. as per my understanding, we are procuring RF technologies from Itron, if I'm not wrong. So comment -- so Genus is one company, which is flexible. We work with everyone. They are customers who say like a couple of our international customers, they want us to supply metal with our iPhone RS. We are doing that. There are a couple of customers who want us to supply with it different RF technology. So we do that. In India, most of the MISP projects, which we are executing directly, we are using our own RF technology and our own celular [indiscernible] -- got it.
Got it. Sir, on the second question, I've been hearing more about execution challenges at installing smart meals because there is some nonacceptance from customers because it is -- we are shifting from postpaid to prepaid, and there have been some controversy regarding smart meters also. There's a lot of states have paused their plans. So what is your view on the execution part when can we see that pick up on a general policy level, how can government help us execute this better different pieces?
These issues are coming, and they were very well expected absolutely nothing unexpected. But there's a huge thing happening in the country to all the meters on postpaid at converting to prepaid, all the meters are from convention electronic meters are becoming a smart meter. So there will be understanding gap from the consumer also -- but there is a very strong drive from the government that it's a necessary 99% of the consumer understands is only 1,000 people, sometimes they create some noise that because of a smart meter is seated there is absolutely dedicated effort happening from the side of the central government from the side of the state government for the discount from the MIS to continuously sending the consumers the benefit of a smart feet. And one thing is for sure, it's a meter is a necessity, not only for the discounts more than the discount is for the company. slowly gradually, these consumers are very well understanding. And there has been a significant acceptance. But if you'll see the hard more than 5 million smart meters are being installed in almost 4 million or people as they are running very successfully is Bari supposedly one of the lowest interact collect 3D consumption. It's still -- it is more successful there, so slowly gradually, you will see acceptance going everywhere. It is already there. But yes, there have been makeup have been.
But sir, just as you mentioned, are the acceptance is there, but it also has a very high AT&C losses. So like for says like our unit territories like Delhi or Maharashtra or Gujarat, the AT&C all that high. So are you seeing some challenges in these places? .
Concurring if there is a consumer listen, then the -- it should be more in than because the AT&C losses are very high. And once you install the smart prepaid meters, it reduces big time. So imagine you answering your question also, the ATM or merit the acceptance of the smart prepaid meters has been there. So consumer is seeing the benefit but I'm pretty sure it will be much easier in Gujarat and another bank [indiscernible].
[Operator Instructions]. We have next question from the line of [ Adit ] [indiscernible] from Axis Securities.
So my question is with regard to water meters. So is there anything operate you can share with respect to the recently launched trainer in Australia, it's potential to get converted into order or revenue [indiscernible] different contribute to our top line? So currently, we are working on 3 to 4 projects but on the water meter side. So these are all very long decision period projects. So we started this not the news is coming today is that we started almost 3 years that come in the right path the subplot has been accepted. We are expecting them in good orders, but you will see significant number coming from these projects in after 3 to 4 years. It is not going to happen something with tomorrow. But yes, we are on the right path. We have seen we're very confident that waterwall become a very significant portion of our business in the next 3 to 4 years. And anything on cash net is your corporate that we are primarily focusing on the domestic market. We are a regular supply. We're doing it from last 2, 3 years. For gas meters, the product line, what we have created in [indiscernible] we are focusing primarily on the domestic side of the gas. And this is -- I always stated earlier also gas data business, there like not electronic energy meter or electricity we used to do. So it will be that kind of a little smaller than that, that kind of normal market, which we also the important player in the market will continue to supply all the [indiscernible].
Ladies and gentlemen, we will take this as our last question for the day. I now hand the conference over to Mr. Jitendra Agarwal for closing comments.
Thank you all for joining today's call. The progress achieved in the first half of financial year 2025 crores on strong execution capabilities and the strategic initiatives we have implemented. So the robust order book innovative solution is a dedicated team we are well positioned to see upcoming opportunities. Our focus remains on enhancing operational efficiency, extending our market presence and considering new growth avenues and smart metering and the related area. We look forward to both the opportunities and challenges they had and reaffirm our commitment to sustain growth and long-term value creation for our stakeholders.
If there are any additional questions, please contact [indiscernible] Investor Relation advisers. Thank you, everybody. Wishing again, everyone a very happy and prosperous Diwali to you and your family. We said, enjoy the holidays. Thank you.
On behalf of Emkay Global Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.