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Genus Power Infrastructures Ltd
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Ladies and gentlemen, good day, and welcome to Genus Power Infrastructure Limited Q4 FY '22 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
[Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Jitendra Agarwal, Joint Managing Director of Genus Power Infrastructure Limited. Thank you, and over to you, sir.
Good evening, ladies and gentlemen. Warm welcome to the call for financial year 2022. I have Mr. Kailash Agarwal, Vice Chairman of the company; and SGA, our Investor Relations, along with me in this call. The results and investor presentation are uploaded on the stock exchange and company website. I hope everybody had a chance to look at it.
So a few highlights. Revenue of quarter 4 2022 was impacted by lower capacity utilization due to shortage of semiconductors and other critical electronic components. However, we have secured on our supply requirement for semicon for financial year '23, and thus, expect a robust result in revenue in coming quarters on back of robust order book [indiscernible] other influence. We have recorded sales of [ INR 381 crores ] for quarter 4 FY '22 as compared to [ INR 296 crores ] in quarter 3. For quarter 4, EBITDA stood at INR 19 crores as compared to INR 21 crores in quarter 3 FY '22.
Higher raw material prices and lack of operating leverage due to lower capacity utilization resulted in lower operating margins of just 10.6%.
Profit after tax stood at [ INR 11 crores ], up by 34% on a sequential basis as against [ INR 68 crores ] in quarter 3 of FY '22. In December 2021, we have received orders of about [ INR 325 crores ] across export geography and domestic geography. Within domestic geography, orders have been received for smart meters across multiple states [indiscernible] both in some orders [indiscernible]. These orders will be executed over the next couple months.
In FY 2022, we received the [ treatment ] of advanced building infrastructure service provider, including design of AMI system with supply installation and history of 1 million smart prepaid meter, along with reading meter, [indiscernible] continued FMS of these 1 million smart meter some extent utility of [indiscernible]. The total order was [ INR 8,828.57 crores ], where offset is the single largest order finalized by any state utility in India for AMISP to a private company like Genus.
As of 12 May 2022, our order book before adjusting for revenue [indiscernible] March 2022 stood at INR 1,908.20 crores, net of taxes. The impact of reform base event linked or distribution [indiscernible] scheme can defend on ground as almost every SEB has come out with inquiries included under for installation of the smart meter. Thus we anticipate robust order inflow in financial year '23. With [indiscernible] scheme, central government has done a very good 156 [indiscernible] of previous schemes. Most of the apprehensions of SEB has been addressed by customizing the policy guidelines of [indiscernible] specification, but all the stakeholders on board and the rollout of the smart metering scheme across India and is expected to be very smooth affair in the times to come.
With the implementation of [ RDS ], we expect the entire landscape of the Indian metering industry to [indiscernible] with multiple [indiscernible] industry follow. This will also lead to momentum shift from conventional meters into smart meters in Indian metering industry, thus enabling much improved operating margins. In the smart meters, company will also have a lot of opportunity in terms of recurring revenue as facility system provider with all the contracts of an FMS in the company. We as a company are specifically targeting recurring revenue as a move for sustaining our growth. However, CapEx model is now being increasingly accepted among SEBs, wherein the CapEx will be undertaken by AMISP, also known as system integrator under the design, build, finance, own, operate and also [indiscernible] DBFOOP.
From the monthly savings made in more than 1/2 of the smart vehicles, the SEBs will undertake monthly dimension system integrated for a period of 6 to 8 years, one that can pay as new sales model.
All these developments will culminate into robust order inflow, healthy top line growth, total operating margins as well as much improved margin-level guidance for coming 6 to 7 years starting from financial year '23 for the Indian metering industry. We plan to play dual roles of [indiscernible] system integrators ourselves as well as being vendors to other system integrators for the smart metering [indiscernible]. We have continued to focus on technology upgradation and operational efficiency to serve our long-lasting relationship with our clients, which we can press our leadership position. We are confident of significant improvement in our business operation in financial year '23, provided there are no further [indiscernible] shocks.
We can now open the line for Q&A. Thank you.
[Operator Instructions] The first question is from the line of Mohit K. from DAM Capital.
And you have shown a decent set of numbers in Q4 and winning the -- and building a large order book. My question is, given the order book of 19 billion now, what is the kind of revenue is possible in FY '23? And what is the life -- what is the time life cycle of these orders?
So we have given the guidance earlier also, and we shortly maintained the same guidance of financial year '23 will be around INR 100-odd crores, that is what was in the guidance [indiscernible]. Surely, quarter-on-quarter, you will see improvement. So think that becoming better [indiscernible] shortage is also improving every day because whatever the work we have done in last 6 to 9 months, they will start showing from next quarter onwards. So you will only see improvement in quarter-on-quarter the business.
And you asked about the lifetime of this or other. So if you take this order book currently that we have around INR 2,000 crores. Out of this INR 2,000 crores, you can see that around INR 1,000 crores to INR 1,200 crores are to be executed in the next 12 months. And remaining orders or FMS installation will be executed over the period of time. So this is how you can differentiate between the order book.
Yes. My second question is on the EBITDA margin. Given the input depression, given the chief shortages, do you think there's a risk to our margin profile? Or do you think the margin can expand from [ Danish ] to around improvement in the -- is it possible to improve the operating -- improve the EBITDA margin going forward, given that our sales are expected to increase in FY '23?
So from the current level, yes, EBITDA margin will improve significantly. So I don't see any challenge in that. And whatever the guidance we have given earlier around 16% of EBITDA margin, we are pretty confident of achieving that 16% by the end of the segment.
Understood. Sir, my third question is on the order opportunity. Of course, we have heard that many of the states have now got the funding and many of [ debentures ] are awaiting closure. So are you expecting a heightened activity in the next 3, 4 months? And can you please throw some light on which are the tenders which you expect to get closed in the next 2 to 3 months?
I can just give you brief guidance of where the industry is spending today. Currently, only on the supply part, we have live tender of INR 550 crores. Only on the OpEx part, we have live tenders about INR 3,000 crores. And for the commission, we only have live tender about [ INR 1,140 crores ]. So these are the tenders which have already been quoted. So currently, we have quoted tender which are [indiscernible] a little bit [indiscernible] to the tune of INR 4,650 crores.
Tenders which are already out and which will be quoted in next 3 to 4 months [indiscernible] will be decided in sort of 2 to 3 months. So almost, [ INR 125,000 crores ] OpEx margin can develop up in the market. In the -- only for the supply of the smart meter was INR 1,100 crores tenders are out in the market, which will be quoted. Only conventional meter, only metered supply tender for conventional meters are around INR 400 crores.
So in total, you will see around INR 26,000 crores of tenders, which will be quoted in the next 3 to 4 months and will be decided further and almost to the tune of INR 4,650 crores. Tenders will only be quoted with a [indiscernible] and there are different traders. So we see definitely next 3 to 6 months order inflow should be very healthy.
And sir, given the fact that we can do only so much in CapEx mode, are we tying up with different bidders for -- so that we can do a far better supply in coming years?
So [indiscernible] will be [indiscernible]. During my opening remarks also, Genus is going to be one company which will be claimed the overall [indiscernible] and what we are building currently also, we will be suppliers to the AMISP as technology provider, meter provider, communication provider and [indiscernible] solution provider.
And on the other side, we will be also bringing our AMISP as Genus. That way, We have taken -- recently, we have taken over from behind schedule to full booked. So Genus will be playing by the rules. So we are very closely working with our partners across the countries where we are playing the [indiscernible]. And we'll continue to play the same thing in the future, which will give us very healthy business also and good balance of being an AMISP provider and [indiscernible] manufacturer.
The next question is from the line of Anshuman Ashit from ICICI Securities.
Congratulations on the large order win. Sir, my first question is related to the order itself. So when do we expect to start the implementation of the order? And can we assume a 60-40 CapEx/OpEx mix for that? So 60% of the total order size to be implemented over the next year through CapEx, and 40% over the subsequent 8 years, will that be the correct assumption?
So that assumption is not -- mostly correct consumption, 60-40. And this order implementation of this, because we have to do a lot of survey [indiscernible] where the government they give us 30 months for the implementation of these projects. So we are also planning accordingly. You will start seeing on the ground will be the first installation in the month of September, not before September or October.
Okay. And it's a 10-year implementation?
5 months to start working on the ground.
Okay. And sir, the margins, which we will be making in this order. So definitely, it should be much better than what we have sought in Q4. Any thoughts on that?
Yes, because all our [indiscernible] slowly or gradually getting [indiscernible] and mostly the first 2 quarters of the financial year, all the old placed orders initially [indiscernible] because the industry was going through a rate of margin cycle and prices have increased all across. So definitely, that benefit will be visible from quarter 3 of this financial year. So margins will definitely will not be the way it is currently. It will be slightly better than where we stand today.
Sir, and what is that legacy low-margin order book that we have currently? So in Q3, you had mentioned that only 25%...
So we have some old orders which are getting upgraded. By the end of first 2 quarters, I think most of our old orders will be closed.
Okay. Okay. Sir, in Q1 this year, has your capacity utilization improved over Q4? And what was the level for FY '20, if you could just give us that number?
So '22, our capacity utilization was very low, clearly visible in [indiscernible] quarter 1 and 2. You have seen improvement every quarter. But I don't expect quarter 1 and 2 to come to the level where we should be in quarter 3. So quarter 1 and 2, you'll see improvement every quarter, but things are getting better. Specifically, from July onwards, I'm seeing [indiscernible] improving significantly in July and the other [indiscernible], which are contributing [indiscernible] although the planning has been done in the last 6 to 9 months. Those results will be visibly in the sense of us [indiscernible].
Sir, have we started receiving the semiconductors on which we have tied up for FY '23?
As I said just now, you won't see just the result getting better, and not to the level where we expect it to be. So on that, I think semiconductor availability will be much better than the last [indiscernible]. The first 2 quarters will be -- we will see improvement every quarter. But the first 2 quarters will be not at the same level where we expect it to be.
Okay. Okay. And sir, with this large order book that we have, so going forward, you have mentioned that around INR 26,000 crores worth of orders will come in the next 3 to 4 months. So...
Tenders will be floated.
Okay. Tenders will be floated. So do you think that we'll be able to maintain our market share in those tenders?
Only; being doing a supplier, we have been maintaining a very healthy market share. With the industry going leaps and bounds, the intrinsic market share will not be easy, but definitely, we'll play our leadership position. So that is the reason we are focusing our business in a way where we are playing that [indiscernible]. If we focus only as the AMISP provider, then we can't maintain such kind of manufacturing market share, it is too large. So we'll be playing the overall, and our market share will be healthy, and we will maintain our leadership position [indiscernible] confidently.
Sir, on this AMI order, so do we need to build any capability on the ground level? So what capabilities do we have currently? And what are we aiming to achieve over the next -- when we start the implementation of...
It is -- some capabilities are definitely will be added, but not much because we have been focusing on this kind about last 3 years. It's not that something suddenly wherein you have come to unit, which we are not done yet and are better in terms of capability, in terms of implementation [indiscernible] the finance model, which has changed.
You see a project we have already INR 350 crores [indiscernible]. That project plus called CapEx [indiscernible] 70% of CapEx and 30% [indiscernible]. And the project that we are going to do now in this large order with AMISP, on the financial model, I think it's -- yes, there is less of CapEx and mainly it is going to be [indiscernible] performance. But the technology, the product, the solution, the ground level working. So Genus as a company has -- does not [indiscernible] in last 3 to 4 years initially in such project. So technology-wise, we are not seeing any challenge at all on the ground. That is why we are very confident that all of the hard work we have done in last 3, 4 years is going to pay us very dearly in the future.
[Operator Instructions] The next question is from the line of Rajiv Rupani, an individual investor.
Sir, last con call, you had said that you will look at CapEx in the month of May and June, if required. So could you update us on that? If any new CapEx if required, when will you do that?
So currently, we are not needing any CapEx. So as such, we don't have any -- small CapEx here and there, we keep on bringing it in. [indiscernible] of the manufacturing developing that they're going to do currently.
Okay. But if that INR 25,000 crore order book, which is to be quoted in the next 3, 4 months, so if we get a good part of that order, so then the new CapEx will be done accordingly then?
As we have always maintained, we have a very strong hold in our -- because we are a vertically integrated manufacturing company, we have a very strong hold on our product. So whenever we want to double our capacity -- currently, we are comfortably sitting at 10 million, 11 million meters annually, which can be expanded to 20 million, 25 million within 3 to 6 months.
So whenever we will get such large orders, we have sufficient time to reach to that capacity level. So that we are not seeing a challenge at all. Whatever the outcome, things which leads to [indiscernible] client building that we have done a while back. So we are not much worried on the capacity expansion. We have flow [indiscernible] but we already are now -- we are moving from a closely [indiscernible] complete end-to-end solution for [indiscernible]. But we are already baking on the net side of trading center and centers under the development. So all this was -- these are part of our regular work, I'm not seeing this as something differently -- different what we are doing. So the start of our upgradation of technology, that is continued, nothing any major CapEx currently.
Okay. And my next question was on gas meters. What was the...
I just want to add one thing in the interest of everyone. A lot of investments [ may get locked]. A lot of investments we are currently doing to maintain all these smart and the software piece. So they're one of work in terms of CapEx, and all this is going up. So that has nothing to do directly with the manufacturing, that is more to do with the solution [indiscernible].
Okay. My next question was on gas meters. What is the current order book?
Currently, the order book is around INR 18 crores to INR 20 crores, not much. And we're continuously quoting the tenders of the gas meters. We have been, again, very choosy on capital. We don't want to just sell the price part. So we have our goal -- very clear goal on the gas metering market. And we are very much ahead of our goals that we have decided for us. We're very happy with the success with the way the gas meter business is going on.
Okay. And my next question was that our current order book is about INR 1,900 crores. So out of that, how much is conventional meters and how much is smart meters?
[indiscernible] smart meters. Conventional meters is only around INR 350 crores to INR 400 crores. That number I don't have, but yes, it is below 400 and around 350.
The next question is from the line of Amish Kanani from JM Financial.
Congrats on getting a large order. Sir my question is given -- can you hear me, sir?
Yes, I can hear you.
Yes. So sir, my question is, sir, with this kind of large pipeline, are you seeing any new players coming to the foreign kind of bidding? Or we have this usual, if I remember correctly, peers being Schneider, L&G and those type of player only are kind of bidding? And how do you see the competitive landscape in that context?
Also, if say, all tenders come together, do you think industry has capacity to kind of build and execute these large orders? Or the people who are probably late in the time lines may face challenges in procurement itself? And given the kind of scenario that you mentioned, we do have those electronic -- those components, which are in short supply. If you can give us some sense of how the situation there in maybe 1 year, maybe you have been able to procure? Or how is the industry coping in these kind of things?
Thank you very much. So there are many things [indiscernible]. I think initially -- can you repeat it? I'm sorry.
Yes, yes. Sure. Yes, I'll ask one by one in the areas. One is if you can give me the sense of competitive landscape over...
Yes, competitive landscape exists.
And also, if there are any new bidders coming in, sir?
Yes. So there are 2 types of market players [indiscernible] meter manufacturers, which we are currently doing, companies like [indiscernible]. So I'm not seeing any new participants coming as a meter manufacturer. It's quite concentrated with all the players, which are already in categories. But there's no new player. We are seeing an importance more or less non-commercial consumers coming in and [indiscernible]. Out of question.
So as a meter manufacturing, we're not seeing any new competition coming out. And AMISP, yes, there are a lot of people, a lot of large companies are on social interest. These are all large contracts. And we need a fairly strong focus in contract with these contract. So it is there, a lot of good companies that is taking a lot of interest in the project. They want to build a [indiscernible]. So they are also taking interest in the management contract. So as the AMISP provider, I'm seeing a lot of new players coming in. This was expected between the 3 [indiscernible] ready to do this job as AMISP. That is one -- these are only companies, only I see them come in and secure meters who are interested to bid on the AMISP. Otherwise, we think industry is playing the same role that they used to do every year, to provide meters, provide technology. AMISP is completely different, there's a lot new players.
Okay. So in that context, sir, if you can also give us some sense and maybe with respect to the [indiscernible] order that driven, what was the difference between, say, L1 and L2, if you can share that? How -- it will give us some sense of how competitive is this market. And how do you see...
Well, the difference was pretty handsome. [indiscernible] quite competitive in that particular data. One of the reasons the industry is seeing Genus to be very competitive is because we have the complete good technology. So that is where that will play a major role in this landscape, because we know that -- and that is the reason if you see we have -- there are 2 tenders, one is 2.6 million and one for 1 million. So we quoted for 1 million in the AMISP, and we did [indiscernible]. In the country, we'll be doing [indiscernible] 2.6 million [indiscernible] is difficult. So in that sense, you will say that because we are meeting people, we know this landscape better than the typical project company. So definitely, we score over the advantage.
Okay. That makes sense. And in that context, sir, you, I think, did mention the EBITDA margin for this year. I don't want under contract and customer-specific margin to understand. But did you mention EBITDA margin to be more in the range of 18% to 20% this year?
No, no, I specifically mentioned, but that was the guidance we gave last time also, around 16%. I'm more than confident that our EBITDA margin will be 16%, which I mentioned they're positive. We have contract in [indiscernible] as I said, the first 2 quarters are going to be very difficult. So there will be -- you will see improvement quarter-on-quarter. But yes, first 2 quarters, you will see very much like last financial year. So that is why we're giving the guidance of 16% EBITDA.
Okay. So does that mean that in the second half, the margins would be upwards of 20-plus, and that's why we are talking 16? Or do you think 16% will be the margin in the second half?
I want to give a guidance of 16% at the end of the year, full financial year.
So you can see that last -- second half will be better than the margins from 16%.
Yes, definitely.
Okay. And if you can just now explain the funding mechanism part of the whole thing, if you can just refresh us. I understand there are some sovereign guarantees and all, but if you can give us some sense of how does it work and stuff like that?
So funding, we are -- Kailash, sir, if you can.
Yes. Funding basically this is from the company only. The company has good strength in terms of equities, also that company can get back also. So there is nothing new to issue on funding thing. And secondly, as you said earlier also, that 60% will be for the next 2 years. To say that it's INR 800 crores order and INR 500 crores, we have to do in the next 2 years that is expected, there is no big funding required in that.
Okay. Okay. So you think we have to stand to fund and there are no major worries on that.
It's not a very big funding that is required. INR 450 crore cores, INR 500 crores, that's 2 in the next few years.
Okay. And just to clarify, we need not worry about the financial condition of the states, because it is back-to-back, also given some sort of sovereign guarantees there, right?
Yes, yes. Sovereign guarantee, plus these are all going to be prepaid. These are prepaid, where the first payment will be coming to the AMISP. So I think the penetration will improve rather than whatever challenges we are pricing to that, they should get over -- the smart meter comes into big time consideration.
The next question is from the line of [ Abijit Anand ] from [ MK Global ].
So I have -- pardon my [indiscernible] because I'm asking something very basic, but I just wanted to understand from a macro perspective, the whole scheme that the government is running right around INR 1.5 crores for the deployment of the installation of the smart meters, right, maybe over the next decade. If you can help me break up this number into 2, 3 categories because the whole system will require manufactures, communication guys, software guys, and then somebody who will be running the house thing, right? So if you can help us break down into these 4 segments, and also in terms of the value that can be assigned to all this.
So it's a very broad question. It's like explaining the whole industry like a kid. So there is one way I can -- in the interest of time of everyone, I can explain you separately or contact with you. So there will be 4 components, and that is largely in that [indiscernible] is talking about 250 million smart meters and we are...
[indiscernible] we cannot help here. But they can do e-mail to us and we can just clarify that.
Yes, it will be better because it's just hard to explain it broadly, it will take a lot of time.
Sure, sir. No, sorry, I'll send e-mail.
We'll be more than happy to. It's all the detail I would be more than happy to explain.
The next question is from the line of [ Shantanu Strategy ] from [ Mount Intra Finance ].
My question is, sir, I want to know how much portion of the smart meters belong from indigenous components and percentage-wise, and how much you are outsourcing some outside India?
So almost 70% of the raw material is indigenous and 30% is imported. So we are doing the same numbers to the government of India also. So you can say it depends on the different companies have different design, but the ballpark, what the industry has given to government is 60% to 70% indigenous, and 30% to 40% is imported.
Okay, sir. Okay. And I want to know, sir, that we have already got INR 828 crore order book from state utilities. Which state utility -- from which state utility you have got that order, sir?
INR 28 crores.
INR 828 crores order book.
That is on Bihar. Bihar state utility.
Okay. Bihar state utility.
BSPTCL.
Okay. Okay. Perfect. And sir, my last question is how much opportunity size we are envisaging in our water meter area?
So water meter, we have not yet launched the product. So we are not in water meter currently. I can't speak anything on that.
Okay. We are not exploring any opportunity in that segment?
We are working. But right now, we are not exploring anything on water meter.
The next question is from the line of [ Suraj Navdar ] from Sampada Investments.
So just a couple of bookkeeping questions. Sir, I see your inventory levels have gone up year-on-year. So what it is that's relating to?
I could not understand. Can you repeat the [indiscernible].
Sir, inventory on the balance sheet has gone up from INR 177 crores to INR 220 crores. So why is it one...
I've been maintaining that we are also -- that we are continuously starting from pulling. So it is -- the only reason is that right now, it is very difficult for us to do the numbering properly. If something is available, sometimes, unavailable. So we are running in a shortage period. So whatever this is, how it has been planned, whenever we get something [indiscernible]. That is the only reason the inventory has gone up.
Okay. And sir, the investment that...
There is already planned inventory going up in the least, nothing unusual at all. It is very well planned.
Okay. Okay. And sir, the investment that I see of INR 212 crores, are they in the form of mutual fund and very liquid fund that we can access very easily? Or they're investment in some companies or something?
That can be -- they're all mainly in mutual funds, and our strategy is easily available all the time to the fund.
Okay. And sir, with this AMISP order, because we already operate on a very long working capital cycle of 200 days or something, with this AMISP order, can we expect our working capital cycle to get a bit more longer and leverage on the balance sheet?
No. Basically, it will be lesser because this has nothing to do with the working capital cycle. Actually, it will be monthly rental coming to the company on the basis of the CapEx that company will be making. So we, I believe, seen that there will be a reduction in working capital cycle.
So how much will be the upfront investment that we will have to do for the next 2 years? And how much you will get every year? Is there any back of the amount of calculation that you have done?
Basically, there will be an investment of approximately 60% of the orders for the next 2 years. And while -- and the revenue will be coming within 1 year, that will start coming after 1 year, not after -- just after one year.
So is there any ballpark figure that you can see, okay, we are expecting this net amount of revenue from this order every year as a recurring revenue? So basically, what are the...
So yes, I can -- once we complete 1 million meters, so then we expect currently 6 per year as a recurring revenue.
The next question is from the line of Anshuman Ashit from ICICI Securities.
Sir, you have just mentioned that you will be receiving INR 76 crores per year. So is that from the second year onwards from the implementation?
Once we complete the 1 million [indiscernible] this is the maximum what we can receive once we complete the 1 million meters. The revenue -- the clean revenue starts once we do the 5,000 meter. So after every 5,000 meters, the [indiscernible] is done. And once the [indiscernible] is done, then we can go live.
Okay. So this is the OpEx returns, which you consider?
This is the OpEx, yes. Once the 50,000 meters are completed, the revenue starts coming in.
5% of the total.
Yes.
And sir, because this is also under the [ RDS ] scheme, so the state government will be getting the grants of 15%, and the incentives as well from the state -- from the center. So...
This is also -- people -- it's not that we are -- this isn't one size fits all. They're giving the guidelines to like this particular order. [indiscernible] some money from [indiscernible] also. Definitely some money from government also. So it's not that [indiscernible]. In this particular center, 10% is advanced and 22.5% is CapEx. So almost 20%, 25% is paid up front, which is supply [indiscernible]. So every [indiscernible] project will be different from each other. It's not that the only 1 type of funding, or only 1 type of tenders will be floating in the market.
Okay. Sir, which are the other states which will be quoting the tenders in the next 3, 4 months?
I would say the most active currently are Maharashtra. Bihar is coming with a new tender. Most active currently are Maharashtra, under the bridge. We are in Rajasthan, in [indiscernible]. They are most active state currently, and Assam. But onwards, every state has come out with some tenders and their solution. In almost 16 states, their [ RDS ] is still -- have been approved. So you will see almost every state is coming out with some tender in the next 3 years onward.
Okay. Okay. Sir, next question is on our FMS target. So you have said that you are targeting to increase your recurring revenue. So could you give us some guidance on, firstly, what is the current order book of FMS? And any guidance which you can give on that particular part of the business?
So in order book, I'm sorry, I'm not in position to give you exactly the breakup of how much is that. We don't have it open with you. So I can't let you know. And that pie, I suppose we have not targeted anything. But even as I meet other vendors, whatever we are quoting, we are taking the FMS side from that AMISP. So currently, we have a special focus on the FMS revenue because it gives us 2 advantages. But we are connected with the project in the end [indiscernible] other suppliers. We have supplied the material because in smart meter, you have to submit that total year revenue base, whether you do it every AMISP or you do it as a meter manufacturer. So we always said we are targeting contract where we said even as a supply -- even if we are only a supplier, we want to do the [indiscernible] pump, so that our customer is also happy and we are also taking part of the project for next 3 years.
Okay. Sir, just 1 question on -- coming back to the AMI order, which we have got. So all the 1 million meters will be smart prepaid meters, is it?
All the meters will be smart prepaid meters.
Prepaid. Okay. Okay. And sir, 1 final question...
I just want to -- for the interest of everyone, a smart meter can be treated [indiscernible] online. So it's not a difficult [indiscernible]. All these are going to prepaid meters.
Sir, one final question. Sir, where are we currently on the restructuring part? So what is the status? If you could just give us some details.
I think in the next 3 months. By next quarter, I think that will be completed.
The next question is from the line of [ Janam Galani ] from [ Munib Advisors ].
Opportunity. I'm a little new to the company. So pardon me if my questions go from them. I just wanted to know that you mentioned that the capacity is right now, 11 million units, which is for conventional meters. so what is the capacity in terms of smart meters? Like do it at the same time in assembling smart meters and conventional meter?
They don't take same time in assembly, but we have already upgraded our facility. So when we talk about capacity, 75% to 80% is capacity for the smart meters. So when we say 11 million, it is 75%, 80% is the capacity for smart meters.
And so basically, since when you -- you can say by ramping up, can we run for 50% to 60% utilization in FY '23 for smart meters once we start the order for this smart meter in September?
So the full financial year, 50%, 60% is -- I won't say it is impossible. But yes, because first 2 quarters are going to be difficult. Reason is component availability.
Okay. And sir, the order that you have received from Bihar, so the INR 828 crores, sir, what would be the time line that would be required to execute this order?
So 13 months is the time line for installation. And thereafter, 19 months for, yes, 3 years.
Sorry, I couldn't get your voice. So could you repeat, please?
2.5 years. 13 months for the installation in supply, and 19 months for the recurring revenue.
The next question is from the line of [ Raji Robani ], an individual investor.
My question is, during the call, you mentioned that Adani and Tata Power are taking interest in AMISP. So would they be procuring the smart meters from us?
Yes, people like us. Currently, they are 2, 3 big that quoted. If they could not win -- but they are quoting with people like us, and surely, we'll play a role of being the smart meter manufacturer for them.
Okay. And my next question is, our capacity is 10 million to 11 million meters, so what kind of turnover you expect to do with the major smart meters being produced at full capacity?
So I think, basically, if you take a ballpark, you get it in considerably 2,000, 3,000 meters.
Okay. And my last question is with all the states joining in to procure smart meters, so where do you see the company, let's say, after 3, 4 years? What kind of revenue can you achieve?
[indiscernible] optimistic in 4,000, 5,000 is a very diverse figure, but we have, since the past 2 years, have been very difficult. That is a number I don't want to speak. I want to prove it first before speaking the number.
The next question is from the line of [ Swapi Jinjinuela from VT Capital ].
Sir, most of my questions have been answered. Just 1 thing only, could you give the revenue guidance for FY '23?
I gave it in the beginning itself, it is around INR 1,200 crores.
Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments.
Thank you, ladies and gentlemen. We apply our deep industry [indiscernible] knowledge to manufacture quality products and successfully resolve our clients [indiscernible]. And we are confident of delivering sustainable growth as it is on the back of robust purchases. With rapid adoption of smart meters over the coming years, we are committed to continuing to deliver top notch, innovative smart meter products to meet evolving demand in the Indian market. We shall continue to raise the bar and strive to maintain the leadership position. In case you have any further question, please get in touch with us here our Investor Relations. Thank you, everyone. Stay safe, be safe. Thank you, everyone.
Thank you, ladies and gentlemen. On behalf of Genus Power Infrastructures Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.