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Genus Power Infrastructures Ltd
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Ladies and gentlemen, good day and welcome to Genus Power Infrastructures Limited Q4 FY '23 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the 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. Kailash Agarwal, Vice Chairman of Genus Power Infrastructures Limited. Thank you, and over to you, sir.
Thank you. Good evening, ladies and gentlemen. A very warm welcome for the Q4 '23 earning calls of Genus Power. Along with me on this call is Mr. Jitendra Agarwal, Joint Managing Director of the company; and SGA, our Investor Relations advisers. The results and investor presentation are uploaded on the stock exchange and company website. I hope everybody had a chance to look at it.
During this quarter, which ended on March 31, 2023, our wholly owned subsidiaries have received Letter of Awards worth about INR 2,419 crores net of taxes for the appointment as advanced metering infrastructure service provider, AMISP, for installation of about 29.49 lakh smart prepaid meters.
In total, in financial year '23, the company received robust order inflow of about INR 3,844 crores net of taxes. The total order book value as on March 31, 2023, is INR 4,115 crores net of taxes. The execution cycle of the current order book is about 30 months. Thus, it provides favorable visibility for our top line growth for financial year '24.
The company has participated in tenders worth INR 27,000 crores. This constitutes RDSS tenders worth INR 25,000 crores, which is AMISP tenders and [ CapEx amount ] of INR 1,050 crores and conventional meters of INR 950 crores. We expect robust order inflows to continue in financial year '24 also.
The supply chain for semiconductors and other crucial electronic components is quickly getting resorted to normalcy. And as discussed in previous conference calls, we expect to generate total revenue of about INR 1,500 crores in FY '24. With much improved capacity utilization, we also expect operating margins to also return to historical levels in FY '24.
Our working capital cycle is also expected to improve in FY '24 as payment terms are better. And going forward, most of the business will come through the other AMISPs.
The Bihar project is on track and revenue inflow from this project will start gaining more traction from Q1 FY '24 onwards. The Assam project is expected to commence by Q3 FY '24.
In May 2023, the company has signed a commitment letter with United States International Development Finance Corporation, DFC, to obtain a loan of $49.5 million, to scale up the deployment of electric smart meters across India. In partnership with DFC, we are well poised to become a leading player in the AMISP market.
Coming to the results, the sales of Q4 '23 remained modest at INR 202 crores, up 12% as compared to INR 181 crores in Q4 FY '22. A part of our top line has spilled over to the next quarter as the goods were in transit to the end customers. For Q4 FY '23 EBITDA stood at INR 27 crores, up by 42% as compared to INR 19 crores in Q3 FY '22. Profit after tax stood at INR 13 crores for Q4 FY '23 as compared to INR 11 crores for Q4 FY '22, a growth of 14% on Y-o-Y basis.
I now welcome you all for the Q&A.
[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.
Yes. Congratulations on having a very decent order book, especially what you won in Q4 FY '23. So my first question is, sir, what is the name of subsidiary who received the order? And how are you looking to fund this before you start...
Mohit, your voice is not so clear, can you...
Am I audible now?
Yes, this is better.
My question was, sir, what is the name of subsidiary who has received the order in Q4? And how are you looking to fund the subsidiary? Have you started any talk with the lenders?
Kailash sir, you want...
The name of the subsidiary, Jiten, if you remember, I don't remember...
Yes, yes. I know. Genus Power Solutions and Hi-Print Investments.
So they are the 2 subsidiaries, which is Genus Power Solutions Private Limited and Hi-Print Solutions Private Limited. These are the 2 subsidiaries where we have won the order for this Assam project and all. Regarding the funding, company is already working on that. We have some internal accruals also. And then recently, as we -- I have just told that we have received a commitment and the sanction letter from DFC for USD 50 million, almost USD 50 million, USD 49.5 million, that will also be coming to the company. And company is also in talks with a few other people and few other investors and banks for funding for the future. So that has also been informed earlier to the investors.
When can we expect the complete clarity? And is it fair to assume that whatever you won in last quarter, Q4, in the subsidiaries, the revenues will start flowing in the standalone company from H2 FY '24?
Yes. Yes.
Okay. So you mentioned that you were supposed to -- you would like to go back to the historical level EBITDA margin. Is it fair to assume that we are looking at greater than 15% EBITDA margin?
Yes.
Okay. So guidance is INR 1,500 crores for the FY '24 with a 15% EBITDA margin?
Yes.
And sir, given that, so we did a large pipeline, as you have rightly said, there's a very, very large pipeline, which you're likely to get tendered out in the next coming quarters, maybe this quarter or next quarter. What is your strategy? Do we have the enough bidding capacity to participate in a very large tender? As you said, we have participated INR 27,000 crore tender but can we reasonably -- what are the kind of the order inflow you're looking in FY '24?
So we have the capacity to participate in these tenders. So that is not a problem. Yes, there have been some tenders where the capacity has been the issue. But most of the tenders, we have the capacity and capability to participate. And the kind of inflow -- these are all RDSS-based tenders. So we are looking at a very healthy order book inflow in next couple of quarters. But I don't want to put any number on that right now.
Next question is from the Nitin Shah from Shah Investments.
My first question is, could you please provide information on the current level of capacity utilization?
So currently, the capacity utilization is to the tune of 55%, 60%.
Okay. All right. And can you offer guidance on any potential partnerships which we may establish with other Indian companies for the purpose of bidding on smart meters?
So for Genus, we don't require any kind of partnership to be done. We are -- we qualify as a sole entity. And we, for any tendering purposes, we don't partner with any Indian company or any company for that matter.
Understood. And sir, could you please provide more details on the statement that part of your Q4 revenue has spilled over to the following quarter due to goods being in transit to the end customer?
Look, this has been a very normal practice because a lot of inspections are generally done by the electricity board in the second week or third week of the month and then generally they get delayed in dispatches. So this is a very normal practice, there is nothing abnormal in that.
Okay. And sir, my last question is, do we anticipate any sort of improvement in either our working capital or our debtor days in FY '24?
So we -- I definitely see a improvement in debtor cycle. With this RDSS coming into picture, the whole business model is changing, is changing for good. So by the end of this financial year, lot of these legacies, delays from the electricity boards should get better.
Next question is from Yatin from Fidelity.
Sir, just 2, 3 clarifications. First of all, you have signed an LoA of almost INR 25 billion. So when does this come in our final order book or...
Yatin, can you please speak a little loudly, I could not hear you.
Is it better now?
Yes, this is better now. Yes.
Yes. Sir, just wanted to check the LoA, when does it come to our final order book? And when do we become -- pickup ramp of this revenue?
See, LoA is a final purchase order only.
Okay. And when does the revenue recognition...
And the second question, when it gets ramped up? So all these RDSS projects, they take at least 6 to 8 months to get on to the ground because there is a lot of pre-work which is to be required -- to be done before we can get on to the ground. And for the ramp-up, practically all these RDSS projects will take almost 10 months from the date of signing of the LoA, 8 to 10 months, where they truly become a ramp-up kind of a project.
From quarter 3, you will see, as I told in my opening remark also, Yatin, that from quarter 3, you will see that our [indiscernible] we got in the month of March, we will see revenues coming from that and starting ramping up from that.
And sir, this is AMISP, right?
Yes, AMISP. Correct.
So now of the INR 4,000 crores of order backlog, almost 80% is AMISP, right? Is that a fair way to look at your order backlog?
Yes. That's a fair way to look at it. Yes.
So how do we see then our balance sheet for next year? I know we have raised some funding from the American Development Bank. But how do we see our balance sheet for next year? Because there will be some upfronting of capital for these deals and then we will recover it over the course the project time line.
So basically, you will see some increase in that but not to a very high level. I think this will be the maximum debt that the company was -- will be looking for this particular year, which we have already taken from the DFC and all. So there are -- there will be a lot of internal accruals also. And then right now, as you see in our balance sheet and everything that the debtors day and the inventory are very high right now on that. So that will be reducing because RDSS payment schemes are very good. The payment controls and the other -- and the meters we will be supplying to other AMISPs also, the payment terms are also very good there.
So there will be a lot of internal accruals coming back from the working capital that has already been engaged right now in the company. So almost, you will see there will be a increase in our debt. Right now, we are a 0 debt company or net debt company. So certainly, the debt like the DFC will be seen in the balance sheet but not at a very high level.
Sorry, just to persist on this, this is -- on a gross level, is it fair to assume around INR 400 crores to INR 500 crores of debt next year because INR 300-odd crores will be this and then INR 200 crores is the existing debt.
Yes, absolutely, not more than that, INR 500 crores, INR 600 crores. Yes.
Okay. And sir...
And that's on a net worth of INR 1,200 crores.
Net worth of INR 1,200 crores. Yes. Sir, one last question and slightly more broad-based. So the total tendering, which has happened in RDSS last year is almost INR 60,000-odd crores. And if I just take the meter portion of it that is around -- if I take 25% of metering of it, that's around INR 15,000 crores to INR 16,000 crores of potential pipeline which we have. When do we expect this pipeline to start translating and are we confident of maintaining our 20%-plus market share?
So these numbers will start coming very visibly from third quarter, as rightly said by Kailash sir. Because most of these orders and when we say INR 60,000 crores or INR 70,000 crores, most of these orders are now getting finalized, lot of tenders are still in the pipeline. So lot of action you will see from the third quarter, when these orders which are already being decided or getting decided by this month or some of them are decided last month. Most of these projects, the meter supply and the true ramp-up will start happening after 7 to 8 months.
Okay. So let's say, because bulk of the ordering happened between January and March but because the tendering, sorry, not ordering, bulk of the tendering which happened between January and March, this will start reflecting after December or after September, right?
After September you can say...
The orders which are already decided, every order which gets decided takes at least 8 to 9 months for ramp-up. So a lot of orders has been decided also, few of them have been done by us only. So you will see this ramp up in these numbers starts flowing in from third quarter.
Okay. So basically, you can say like that. But whatever the orders that have come before December -- in '22, so that we will see coming -- their effect from first quarter of this year and second quarter of this year. And whatever has come in this year, you will see from third and fourth quarter.
Great, sir. Great. And sorry, just last bookkeeping question here. What would be the cost of debt which we have taken from the American Development Bank? And is this...
I don't have the exact numbers but it will be less than 9%, including all hedging and everything. It is 100% hedged.
[Operator Instructions] The next question is from the line of Nikhil Abhyankar from ICICI Securities.
Sir, I want to understand, sir, who are our major competitors in the RDSS tenders? And how do you see the competitive landscape as the orders come along in the H2?
So in RDSS, for this end-to-end AMISP products, the most aggressive competitors in the market are companies like Adani, Montecarlo, GMR, IntelliSmart. So they are -- these are the 4, 5 companies, which are the major competition for RDSS. And for the meters, as a manufacturer, as a supplier, it is primarily Schneider and HPL.
Yes. Yes. So -- and also, you have earlier mentioned that the semiconductor issue is now in the past. So how confident are we that we won't be facing that specific problem going ahead? And also, apart from semiconductors, what were the major bottlenecks that we faced in the last 1 year? And what is our outlook regarding those in the coming years?
So there were the 2 prime reasons of -- last couple of years has been very, very slow. Of course, the order offtake, all across the country, the order offtake got very slow. And second prime reason or I would say the prime reason was nonavailability of the semiconductors. And then because of that, the offtake also became very, very slow.
So semiconductor issue is more or less sorted out. It is, I won't say, it is completely off and we are back to those days of '18, '19. Still not that clear, mostly it is sorted out, still 1 or 2 semiconductors, which affect 1 or 2 projects keeps happening. But in general, we are out of that issue.
And sir, do we have any long-term contract for semiconductor supplies?
So all these large companies with whom we work for these semiconductors, in general, we have long-term contracts only with them. So we are following the same process that we used to do earlier.
Okay. And sir, how will we use this $50 million funding? Will it be used for working capital, capacity expansion or anything else?
Mainly for the working capital, which will be used for the same as in '22 [indiscernible] in those projects.
Working capital. Okay. And just a final question, sir. Sir, can you just help us understand about the restructuring process? And how it is going to help us?
Sorry, which restructuring you are talking about?
Business restructuring process.
I could not understand your question, please. Can you come again.
Sir, the demerger of investment business undertaking from Genus Power.
That's already running since long -- last 1.5 years because of the NCLT bench is not available, that is not happening. And it is just to make Genus as a purely powerplay company only. There is -- these investments are just not adding any value in terms of the business of the company. So we are just putting it out, the division, that this investment division, we are taking out as a demerger.
And this scheme is almost running since the last 1.5 years because of the nonavailability of the criminal judges and all -- shortage of criminal judges and all, it is just delayed and all. And I think it will happen in the next, say, 1 quarter or like that.
Okay. So then, just a final question, sir, what was this negative other income on the consol level?
So that is basically only the share -- the treasury of the company which holds some listed company shares also and some bonds also and there is a treasury of the company. So that's the MTM of that. There is no loss or profit in that, it's just MTM, because of the MTM it is holding in consolidated [indiscernible].
[Operator Instructions] Next question is from the line of [ Ashit Kothi ], as an individual investor.
Yes. Just wanted to understand 1 thing, sir, with regards to execution of INR 2,400 crores, which is there exactly as outstanding orders, which would be, I suppose, within next 9 to 12 months?
So as we said earlier, these are turnkey projects, which is related to AMISP. So lot of execution of these projects will ramp up from third quarter onwards. Otherwise also, we are continuously doing our regular business on non-conventional meters and that is continuously going on.
Okay. And if I divide that overall orders into 4 categories, what you have mentioned under metering and other -- subsequent other heads, 4 heads. So all in all, 4 heads are there. So if I were to divide under different heads, what would be the -- how do I bifurcate that amount or it's not possible?
See, which are these 4 heads? 80% is AMISP, as I told you and remaining 20% is...
Okay. When I said, head means, just 1 sec, sir.
Till that time, we can take any other question, you can get ready, please.
Then that basically, sir, we see -- do we see ourselves as exporting also apart from the local, majorly -- be a major exporter?
So we currently also do a good amount of exports in metering and we continue to do that. Our export businesses continue to grow.
Okay. Okay. What I was talking about was smart meters, then BT metering, HT & Feeder metering [indiscernible] energy accounting and FMS. So if I divide the whole order into these 4 subheads, should I be doing that on MTM?
No, we should not be doing that because these subheads are -- there's no comparison between the 2 subheads, one can be only 0.05% of the total scheme of the things.
And that's not possible for also, just we have to understand that we can broadly tell you that 80% is the AMISP and remaining 20% is all other things, what we said.
[Operator Instructions] The next question is from the line of Srijan Sinha from Future Generali India Life Insurance.
I'm sorry, but we have been disappointed with the kind of revenues that we are doing. We expected better ramp-up of revenues given the kind of ordering that's happening, given the kind of opportunity size that we have. In 2018-'19, we used to do about INR 275 crores, INR 300 crores kind of quarterly top line. We are still significantly away from that kind of number.
So sir, how do you see this ramp-up happening? So H1 of FY '24, again is going to be kind of similar run rate that we are having. And only in H2 that we see significant pickup or we'll continue to see some bit of pickup in Q1 and Q2 as well and then the major pickups happens in the latter part of the year?
So [indiscernible] as you rightly said, we are disappointed. More than you, we are disappointed. So feeling is mutual. You have to understand the cycle of the business. First quarter, second quarter, as we are mentioned it earlier also, that lot of ramp-up will happen from the third quarter. But most of these orders are decided in the last quarter of last financial year or third quarter of last financial year. It takes at least 8 to 9 months to ramp up.
And most of the electricity boards all across the country are now moving towards AMISP. So the conventional meter buying has also slowed down quite a bit because they won't be requiring it. So that is the reason you will see...
No, no. But here Srijan, you have to understand that it won't be like that, that the next 2 quarters will be like the fourth quarter or third quarter only. There will be certainly a good amount of improvement in these quarters also, first quarter and second quarter. Because Bihar project will be ramped up in first quarter and second quarter. Bihar project already we have won last year only. So there will be a good ramp-up in Bihar project. So we will be seeing a very good numbers in comparison to third or fourth quarter.
But the better -- the other projects will be seen in third and fourth quarter. We have given a guidance of INR 1,500 crores. So you can say that out of that 40% might be happening in first 2 quarters and 60% happening in last 2 quarters. So it won't be like that, that we will -- first 2 quarters will be like the third quarter or fourth quarter only.
So 40% in H1 implies about INR 600 crores of revenue in H1, that's about INR 300 crores a quarter, which has a significant jump from where we are currently. So you have that kind of visibility that you will start doing INR 300 crores...
[indiscernible] you can see that Bihar project, already I've told in my opening remarks also that it will be ramped up from quarter 1 this financial year.
Okay. Sir, second, my second question is, you have mentioned in your presentation that there was some spillover of revenue from Q4 into Q1. Is it possible for you to quantify that? How much has spilled over into Q1?
That -- it's normally...
These are very normal numbers. So...
Normally, these numbers are INR 20 crores, INR 25 crores, where it's spillover or will happen in next quarter. This time, it is around INR 50 crores. So there will be a impact of INR 25 crores, INR 30 crores in next quarter.
Okay, fair enough.
Normally, it's INR 25 crores always. But this time, it is INR 50 crores, because that's why there is a revenue -- lesser revenue of INR 25 crores from our fourth -- in fourth quarter.
Okay. So I mean the delta is about INR 25 crores.
Yes. The delta is INR 25 crores, INR 30 crores, yes.
Okay. Sir, my second question is with respect to semiconductor situation. Now I mean across the industries, if we see, be it consumer durable, be it auto, semiconductor situation has more or less normalized. I mean it got normalized about 6, 9 months back. What is specific to our industry that is impacting us?
So there is nothing specific to a particular project that you do because you work on multiple platforms while designing the meters. And sometimes, some of the projects, some of the platforms are still not regularized the way they used to be in the year '18, '19. So that is why, as I said, is more or less normalized. But yes, few projects are still getting hampered because of it.
Okay. And sir, my final question is with respect to your balance sheet. There is some bit of a spurt in the current borrowings, so in the short-term borrowings. Is that because of the Bihar project? And second is, what would be the net debt status as of today? How much is the net debt?
Net debt, I think it must be almost 0 net debt as on 31 March.
This is including the treasury shares or without -- excluding this treasury shares.
No. Shares, we don't value for the treasury shares. We just say this is the cash, company is sitting on.
Okay. So net debt would be 0. So this in more than the short-term borrowings that has happened, has happened on back of...
That is because of this Bihar and these -- the ongoing projects of Assam and all.
[Operator Instructions] Next question is from Vineet Agrawal from SKP Securities.
Sir, majority of my questions are answered. Just, I wanted to do, can you please provide us the tender participation and to be participation details which you provide every quarter?
Yes, I can -- so currently, the tenders that we have participated is to the tune of -- but these are all RDSS tenders. So these numbers are very -- you have to understand the business model. Earlier where -- when we used to do business, we are participating in the tenders. We can be L1. We can be L2. We can be L3.
Then the quantities gets divided. Here, in this RDSS tenders, once we have made the bid, the whole project goes to the L1. So to commensurate your numbers from the number of tenders being participated and the kind of values we have participated, it generally gets very confusing. That is the reason I'm very skeptical in taking those numbers.
But my -- in my opening remarks, we have already told that it's almost INR 27,000 crores worth of tenders going on.
[Operator Instructions] Next question is from Nikhil Abhyankar from ICICI Securities.
Just a follow-up. Can you quantify the amount of losses that we have took for the quarter?
Sorry, Nikhil, I could not understand...
Can you quantify the amount of MTM losses that were booked for the quarter, so that we can have an [indiscernible]
I think that's around -- I have to check exactly, I don't have the numbers. It's also for 2022, it's INR 22 crores or something like that, INR 20 crores, INR 22 crores, yes.
So if we remove that, our other income would have been 0, on those lines.
Almost, yes. Other income must be INR 3 crores, INR 4 crores. Yes. So our MTM must be INR 26 crores or something like that. Other income was INR 4 crores, yes, if I remember right, yes. So MTM must be INR 26 crores.
[Operator Instructions] Our next question is from the line of [ Akhilesh ], as an individual investor.
Sir, you have mentioned the MTM hit. So what is the carrying value of these securities currently?
So basically, the total -- the carry value of the securities that, that we have to check and come back to. I don't have the exact number of that -- for that.
And what would they primarily be as in their shares of what or bonds or what...
So these basically, these are the shares of company Genus Power itself, #1; and 1 other company, Genus Paper. So treasury, the mainly -- there are 2 shares in the treasury, which is of the, one, the company, Genus Power itself and one another company, Genus Paper. And these 2 shares are hold by company since last almost 10 years. I think these shares are in the company since last 2013-'14 when they came from a merger/demerger scheme and all.
So these are the 2 mainly shares of the company, which affects on the MTM of the company.
And will these be hived off into the other company through demerger or...
No, no. These are not hived off. These are the cash securities only and these will be in the company only even after the kind of this demerging thing and all.
And since our capital requirements will also go up, we have to fund various projects, do we plan to hold these securities or do we plan to encash them?
It's right now, it's too early to comment anything. It will all depend how the things move and how the business comes and everything comes...
Okay. And sir, second question is, what kind of competitive intensity are you seeing in the bids you are tendering for, now? And how confident are you that this margin guidance of 15% could be maintained even beyond FY '24 or maybe even be stepped up a bit?
Of course the competition intensity is there but at the same time, the market is pretty large and these are very, very technical products. So I'm pretty confident that we will be able to maintain this status.
The next question is from the line of Riya Varma from [ NR Securities ].
So I have a couple of questions. Firstly, how much order inflow can we expect in FY '24?
So in FY '24, we expect a good order book. As I said earlier also, I don't want to put any number on it. But yes, there are lot of tenders being quoted, a lot of tenders which will be quoted in next couple of quarters. So we expect a very healthy order book but I don't want to put a number on that.
And just want to clarify on that. But as I told in the opening remark also that then we have participated in INR 27,000 crores worth of orders and there will be many new more tenders will be coming. And company has a history of success on that around 15%, 20%. So basically, you -- but we don't want to put a specific number on that.
Understood. And so this smart metering market is experiencing the arrival of new competitors. So it is pertinent to assess whether the competitive intensity will escalate or not? And what implications may this have on our business?
So as I said, we have -- there are 2 type of tenders what -- 2 type of business, what we are doing. One is, we are quoting as a [indiscernible]. One is supplying meters to electricity boards and the AMISP. So the competition intensity in both the places is almost the same, the way it used to be earlier. The only difference is, in AMISP, they are now much larger players have come into the foray. So for the metering business competition, we are competing with all old companies only like HPL, Schneider, Secure Meters.
And for the AMISP, a lot of new people have come into the market like Adani, Montecarlo, IntelliSmart [indiscernible] larger companies, GMR. So we are competing with them. So as -- since we are playing both the roles, we are competing at both the places.
Okay, sir. And lastly, can you provide more details on the time line for CapEx requirements, given the extent of the expected growth in the smart metering industry?
So any single project that comes that has to be completed in 30 months. So basically, that depends -- right now, our order book [ history ] is like INR [indiscernible] crores. So it always depends on how many more orders or how many more projects are coming to the company and then on the basis of that, those CapEx will be defined [indiscernible].
[Operator Instructions] Next question is from the line of [ Snehal Jain from SK Securities ].
So I have a few questions. Could you share an update on the current status of the bids we have participated in? What are the potential upcoming bids opportunities that we are yet to participate in?
As we said in the opening remarks, it's at almost INR 27,000 crores of bids we have already participated. For the future, to be participated almost tenders worth INR 30,000 crores are in the pipeline. So you will see them getting bidded in the next 1 quarter to 2 quarters.
Okay, sir. And what is the projected time line for the company to achieve its previous margin profile of around 16%, 17%?
We are confident of achieving these numbers by this financial year and next financial year that we are 100% sure.
Okay. And the last question, what is the projected revenue growth potential over the next 3 to 4 years, what is your projection for the operating margins of the overall industry and Genus Power in the upcoming years, considering the replacement of traditional meters with smart meters?
Right now, we are not holding them for 3, 4 years, just we are talking about '24. So in the next call, we can provide you that.
[Operator Instructions] The next question is from the line of Naman Agarwal from [ DOL ].
So sir, how do you see the potential to increase the market share in the future in the meter industry?
Your voice was not very clear. What I understood is you're asking for the market share.
Yes, market share on meter industry.
Market share of Genus in the meter industry?
Market share in the meter industry. I'm asking -- hello?
Sorry, I'm unable to follow your questions. Something is...
Am I audible right now. Hello?
Hello? Yes.
Yes, am I audible right now?
Yes, it is better.
Yes. So sir, how do you see the potential to increase the market share in the future in the meter industry?
So we currently already have a very healthy market share in the business -- the overall industry is growing multi-multi-folds. So if we maintain our current market share, I think that will be very good itself.
Right, sir. So sir, 1 more, the company has like signed a commitment letter with the United States International Development Finance Corporation to obtain the loan of USD 46.5 million (sic) [ USD 49.5 million ] So can you provide some -- little more details regarding the same?
So basically, it's a loan for 9 years, fully hedged loan and it will be used for the working capital of AMISP [indiscernible].
Sir, also, can you provide some a little more clarity on the operational mechanics of AMISP business model and its consequently impact on the company's P&L and balance sheet figure?
What operational impact, we just want to understand because it's a lengthy, basically, what exactly -- it's a too big question to answer. So what exactly you want to understand, if you can clarify that, that will be better?
Sir, like, basically, operational mechanism of AMISP business model, how the business model will impact my balance sheet and P&L in the future?
Basically, it's a OpEx model business where we will be putting all the money initially and then we will be getting the money back in 90 to 100 installments, monthly installments and all. So initial 40%, 50%, whatever is the CapEx will be happening that will be done by the company and then the operation, we have to maintain all those meters for the next 90 months and our money will be coming on the monthly basis.
Ladies and gentlemen, that would be our last question for today. I now hand the conference back to Mr. Kailash Agarwal for closing comments. Thank you and over to you, sir.
Thank you, ladies and gentlemen. We have a deep knowledge of the domain of the industry and we can assure you that, right now, the company is on the right track and a lot of international business is coming and company is totally ready to get those business and getting that business. And we will do very good in the coming times. I assure you that. Thank you very much. Thanks a lot.
Thank you, everybody. Take care. Thank you.
Thank you very much. Ladies and gentlemen, on behalf of Genus Power Infrastructures Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines. Thank you.