Genus Power Infrastructures Limited (530343) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Genus Power Infrastructures Limited Q3 and 9 months FY '21 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 date of this call. These statements are not the guarantees of future performance and involves 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, Mr. Agarwal.

Thank you. Thanks. Good evening, ladies and gentlemen. A very warm welcome to the Q3 FY '21 earnings call for Genus. Along with me on this call is Mr. Jitendra Agarwal, Joint MD of the company; and SGA, our Investor Relations Advisers. The results and investor presentations are already uploaded on the stock exchange and company website, and I hope that you people must have seen that. Our capacity utilization remained subdued in this quarter due to muted volume of uptake on account of postponement of dispatches of meters to forthcoming quarters. This is primarily on account of customer-centric nature of our business, which requires human intervention for installation of meters. So though the effect of COVID-19-led disruptions on business operation has dissipated, but the overhang is likely to remain on business operations for this fiscal year. However, we anticipate witnessing a smart recovery for the entire Indian metering industry in FY '22. The trust from the government of smart meter is bound to further increase as these meters are the key catalysts for reducing the aggregate technical and commercial AT&C losses faced by DISCOMs due to nonrealization of total build amount. Thus, we foresee the forthcoming period of next 6 to 7 years to be extremely rewarding to Indian metering industry as the government embarks upon its mission to have a compulsory prepaid and smart metering component to be implemented across the power distribution chain, including almost about 250 million households. I give you a little snapshot of the results. As -- in the third quarter, we have recorded a sales of INR 160 crores compared to INR 165 crores in Q2. The revenue growth was impacted by subdued volume offtake by SEBs. EBITDA profit for this quarter stood at INR 29 crores as compared to INR 34 crores in second quarter. The fall in operating profit was on account of product mix, higher employee costs and overheads build in anticipation of higher order book execution. Profit after tax stood at INR 18 crores, up by 164% as against INR 7 crores in Q2 '21. However, kindly note that onetime provision was taken in the -- of the past litigation of Vivad Se Vishwas Scheme in PAT of Q2 '21. Cash PAT stood at INR 23 crores, an increase of 81% as against INR 13 crores in Q2 '21. We are confident of significant improvement in our business operations in Q4 FY '21 as the volume uptake improves. The current order book is INR 1,005 crore, which gives a healthy visibility of growth over the next 3 to 4 quarters. One thing I would like to bring in your notice is that as a part of our efforts to sharpen the focus of the management team, we are undertaking business restructuring, wherein company investment in nonlisted group entities is being demerged and amalgamated into another listed company, Genus Prime Infra limited, in view of which Genus Prime will issue its shares to shareholders of Genus Power. I would also like to inform you that we have -- 2 imminent personalities are joining -- have joined us in our Board of Directors as independent directors and Dr. Keith Mario Torpy as nonexecutive, nonindependent Director. Mr. Subhash Chandra Garg has served as Economic Affairs Secretary and Finance Secretary in the Ministry of Finance and as a Secretary in Ministry of Power and will enable us to further bolster our internal control and fortify our corporate policies with a commitment to maximize value of our shareholders. Dr. Keith Mario also is a respected person -- is a highly respected professional with over 25 years of global experience in the field of smart metering, which will enable us in building new platforms of growth, expanding international footprint and securing our long-term goals. Now I now request all of you for the question-and-answer session. Thank you.

[Operator Instructions] The first question is from the line of [ Priyanka Singh ] from [ Atidhan Securities ].

I had few -- a couple of questions. The first one is what is the share of exports in Q3 revenue? And what is our current order book?

Order book in exports?

No, no, no, sir. So what is the share of exports in -- as a part of the total revenue for the quarter?

The order book for the exports is around INR 70 crores out of the INR 1,005 crores orders we have. So export order is INR 70 crores. And for the quarter 3, exact number I…

Exact number is INR 31 crores. INR 31 crores.

Okay. Also on the previous con call, you had mentioned that export opportunities will open up due to COVID. How are we seeing the progress on that front?

See, some very good opportunities are still going on, but they're pretty slow. We are not seeing the revamping in the international market the way we expect. Speed has been a little slow, especially in countries like Malaysia, Bangladesh, where we were closely working on a couple of opportunities that were going to happen. So these are little slow still. But yes, these opportunities are still alive and I see them a good -- I would say, a good day probability in next couple of months or 2 to 3 months. Yes, they're running late, but these opportunities are fairly good.

Let me clear -- it's not INR 31 crores, it's 3 crores, sorry. And the total for 9 months is INR 23 crores.

Okay. Okay. And also, can you share some picture on the business restructuring that we are undertaking? And how was the valuation done for the same?

Basically, there is some investments and some advances in some good companies and nongood companies which we have already made as a separate division. If you see last 2 quarters results, you will see that there is a separate division that the company has recognized of almost INR 106 crores and INR 107 crores. So that division is going out from the company as company wants to focus on the core activity, that is the meter manufacturing, and that is going out. And the valuation, already, we have -- right now, I don't have the valuation numbers, we have given -- when we have given announcement to the exchange. I think it's almost -- for every 6 shares of Genus Power -- for every -- we're getting 1 share of Genus Prime of 2 paid up. And Genus Power share is 1 paid up.

Okay. Okay. Got it. And how do we see the gas metering business to pan out over the next 2 to 3 years? And what is the revenue that we are targeting, let's say, by FY '23?

For gas meters?

Gas metering business.

Yes, gas metering you are talking about? Hello?

Hello?

Can you hear me? You're talking about gas meters, if I'm not wrong?

Yes, yes. Gas metering business.

In the gas metering business, our outlook is same what we -- what I shared in our last call also. We expect this industry to become [Technical Difficulty]. Right now, it's pretty small, but a lot of opportunities are coming up. And we have a good sweet spot in the industry. We are already approved with many of the clients. Recently, we received a order of 10,000 gas meters from Green Energy. Already a very good opportunity of 50,000 meters is -- we are very close to that opportunity also very, very soon. So gas meter has a very good future. And it -- this industry will become -- in my estimation, this should become a INR 800 crores to INR 1,000 crores industry in 2 to 3 years. We should have our own -- we are expecting at least 15% market share, if not more. We will play a big role in the gas metering business in the times to come.

Okay, sir. And one just follow-up on this. What would be the operating margin?

In what?

In gas meters?

Yes. Correct.

Gas meters you can compare with meters except it's like any -- you can compare it with single-phase meter and -- for electronics. So it will be almost same. I'm not seeing anything much difference in that.

Okay. And just one last question. Could you provide any guidance for FY '22 in terms of revenue and margins?

Next financial year?

Correct.

Next financial year, yes, I would say conservatively confident that we would do -- to amalgamate should be on top line at least. I'm pretty confident on that. The order book currently is very, very good. And a lot of tenders are in the pipeline, almost INR 4,500 crores tenders are either live or will be quoted in the next couple of months. So order book position will also improve dramatically. It's not very bad as of now, and it will further improve dramatically in the next 3 to 4 months. We should do INR 1,200 crores is the guideline what I can give. The same kind of…

With the EBITDA of 16%, approximately.

Yes.

[Operator Instructions] The next question is from the line of [ Isha Savla ] from [ Arya Securities ].

Sir, I wanted to know that what are the receivable days during quarter 3 and 9 months? And how is our overall working capital cycle currently?

It's almost same. Basically, it's almost -- our working capital cycle is almost 200 days, and it's almost same right now also.

Okay, sir. So does the company expect any working capital cycle improvement in years ahead considering that the government may allocate a separate corpus for smart meters?

At least for coming 1 or 2 quarters, we are not seeing that, depending how the budget comes and how the government is taking funding for these smart meters and all. But at least for 1, 2 quarters, we are not seeing that.

And are we expecting any improvement in the operating margins going forward as the operating leverage kicks in? And what will be sustainable EBITDA margin over medium term?

16%, we have given just the guidance for the next year that we will be doing. We will be surely doing a top line of INR 1,200 crores with the EBITDA margin guidance of 16%. If that -- the top line increases, there might be an improvement in EBITDA margins also because of the numbers and all. But right now, being very conservative and as the government is giving a very big number for the smart meters. So these top line numbers can be far higher than what we are expecting of INR 1,200 crores. So if that goes up, then the EBITDA margins can also go up from that levels.

Okay, sir. That's very great. And sir, what is the share of FMS in total revenue? And what are the margins -- margin in the FMS business?

FMS business, we will -- see most of the projects where we are doing end-to-end solution. So there only we get the FMS kind of a world. FMS is generally 7% to 10% of the total contract value. It depends on the kind of contract we are doing. So right now, the FMS revenue is very, very low because most of these projects, the FMS -- prime FMS will start from next financial year. So exact number, I don't have currently, but it's quite negligible as of now. But from next year, I see we'll have -- like I said from the financial year '21-'22, there's a lot of these key projects we have where we are providing end-to-end solution will -- a lot of FMS has been discussed from the second half of the year. So some revenues -- I'm expecting a revenue of at least INR 20 crores, INR 25 crores in the next financial year from the FMS work.

And basically, we participate as a single tender. So there is no separately that FMS is participated separate. It's a total unit participation. So we see the margin as a whole. We don't see a -- when we calculate, we certainly calculate -- always service-giving things are better margin giving. But when we calculate, when we participate, it's -- we put it as a whole always.

Okay, sir. So can we expect a market share of approximately 8% to 10% in total revenue in next year?

Market share of FMS?

Yes. In total revenue -- in our total revenue?

No, no, no. It is not even 5%. FMS is -- very few projects where we have FMS. In one of these projects, the FMS work will start from the second half of next year.

Okay, okay, sir. And sir, what is the…

And as I told you, even the number, see, we are expecting, at least, we will do INR 1,200 crores in the top line. And FMS billings will be in tune of INR 25, INR 30 crores. So it is 2% to 3%, not more than that.

Okay, sir. Fair enough. And sir, what is the share of smart meters in our quarter 3 FY '21 revenue? And in our outstanding -- what is our outstanding order book in smart meters?

If you see the outstanding order book, it is mainly smart meters only. I'll give you the exact numbers. So out of the INR 1,005 crores orders we have in hand, INR 600 crores are from smart meters -- INR 650 crores to be more precise.

[Operator Instructions] The next question is from the line of Keshav Garg from CCIPL.

Sir, I wanted to understand that with this demerger, does all the unlisted as well as listed investment, I think, in Genus Paper, we have some investments, so everything will go out, and we will just remain a stand-alone metering business without any investments -- any strategic investments, I mean, not mutual funds, et cetera?

No, no. It won't. Only nonlisted entities investments are going. Listed entities investments -- actually, there is a trust in the company, which holds 2 shares, 1 of the company, Genus Power itself and 1 Genus Paper. So those -- that trust is not going out. That trust is not the part of strategic division, and that is what going out.

Okay sir, as far as the treasury shares of our own company are concerned, sir, that's fine. But sir, I mean, why not…

Even Genus Paper. That treasury shares -- the treasury share of our own company and Genus Paper, both are hold by a trust, which is a part of the company. And that trust is not going out of the company. As -- so there is no listed company shares going out of the company with this demerger.

Okay, sir. Sir, and also wanted to understand that for next financial year, sir, you are giving a guidance of INR 1,200 crores? Is that correct, sir?

Yes. Yes, yes.

Okay, sir. And sir, this will be predominantly smart meter only?

Yes. Predominantly smart meters.

Okay, sir. And sir, has any new player entered the smart meter sector? Or I mean, is it the same as before?

Same as before.

Okay, sir. And sir, with the Chinese entities being barred from participating, sir, so any -- sir, so do you see the margins going up or the competitive intensity coming down, sir? Basically, would you like to elaborate on that?

There are enough steel companies in the country. Chinese were trying to enter through the EESL mode, except that they were never there in any of the state electricity boards. So the SEBs business was anyway with the Indian companies because that is not easy for anybody coming from outside to do. And after this barring has happened, even Chinese -- the doors in EESL is also closed for Chinese. So I don't see any major change in terms of competition because Chinese are coming or not coming, life remains almost the same.

Okay, sir. And sir, in your investor presentation, it is mentioned that there are plans to install up to 13 crore smart meters by '21 -- 2021. Sir, so basically, if that materializes in this current year, sir, then, I mean, shouldn't we surpass our INR 1,200 crores guidance?

Even 20% of this gets materialized, we'll be super good. This is what I can say.

Sir, and basically, for the -- for FY '23 and '24, sir, basically, our turnover has been flat since a long time, sir. So do you think that finally, we will break out of this, I mean, range that we are stuck around INR 1,000 crores?

See, we are very, very positive on the smart metering side. Unfortunately, due to COVID, this whole journey got slowed. We all have to understand, the biggest hit section in the country -- if you look at the overall scenario of the country, the majorly hit segment has been the transmission and distribution segment of the company, the T&D, which is where we are. We are primarily a distribution segment company. And distribution is hit very, very badly because all these state electricity boards have seen a very, very tough time from March to till now. Now we are seeing a lot of recovery in the industry is happening and where billing cycles are improving, where revenues are improving. So since our segment was hit very, very badly, which has already been delayed, the smart metering, overall planning of the smart meters from central government to all the SEBs, it got delayed by almost 12 months. So now, as we all know, smart metering is very, very laser focus area of the government and which is visible in their action. Today, Mr. Alok Kumar becoming Secretary of Power, Government of India, is a clear-cut indication given by the Ministry of Power that we are very serious on the smart metering. That gentleman has been holding the -- was the main flag bearer when it comes to smart metering in India. So he was the first guy who raised orders of 4 million smart meters in U.P., and out of this 4 million meters, almost 2 million meters have been installed. So he is one gentleman who defied all the rules and told, okay, smart metering is the backbone for the success of distribution companies in the country -- for the revival of the distribution companies in the country. So these are the actions which are visible from the government also to say how serious they are on the smart metering project. So definitely, it is super delayed. We have been talking about it from last 2, 3 years. But I see a lot of things happening, hopefully, in the next 12 months.

[Operator Instructions] The next question is from the line of from [ Mitesh Sheth ] from [ Atidhan Securities ].

Sir, I had just 1 data point question. How many number of the shares we are holding in the treasury of the Genus Power company? And are there any plans to, like, place it or get -- I mean, to monetize those shares? Is this possible?

The number is almost around 2.8 crore shares treasury is holding of Genus Power. And company right now has no plans to monetize it because company is basically already sitting on some cash. It's a net debt -- zero debt company. So company don't require any cash. And for the future growth also and whatever the growth is coming, we don't see any requirement of any money to the company. So we don't see any monetization of it in the current -- next 1 or 2 years.

[Operator Instructions] The next question is from the line of [ Aarush Oberoi ] from [ Victor Delta Securities ].

So I'd like to know that what is the worth of tenders in the company has already participated?

Can you repeat your question, please?

The worth of tenders in which the company has already participated?

See, right now, there are tenders of worth INR 1,800 crores which are live, which are already participated. And the tender of INR 3,000 crores which are to be participated in the next 2 months which are already has been out and due dates -- anywhere from 5 days to 10 days to maximum 2 months. So currently, INR 1,800 crores are already quoted and almost INR 3,000 crores will be quoted in next maximum 30 to 45 days.

Okay. And any forthcoming tenders in the pipeline other than that?

Correctly, if I see the forthcoming tenders, there are 4, 5 very large tenders, which will be coming. So I am pretty -- as I told earlier also, the next 2 to 3 months, like, number of opportunities which are coming in the market, I think order book and things will be -- become smooth. We are late by 12 months, but the next 3 to 6 months, this will become pretty smooth for the industry overall.

Okay. So when are these contracts or tenders likely to be awarded? And what is the order inflow that the company targeting to get from this tender?

See, basically, we also target our share of 25% from all the businesses once we quote and do. So we'll continue to focus our target. And till now, we have been achieving that.

So I want -- I would like to know that what are the -- out of the total tenders that we have bided, what is the share of smart meters and conventional meters?

Currently, the tenders which are live, we had already participated, which are under testing or price bid is getting opened or will get opened, so for smart meters that value is INR 575 crores out of INR 1,800 crores. Remaining around INR 1,200 crores is conventional meters. So there are a lot of conventional meters tenders which came in last 6 to 8 months. And we participated there is a value of INR 1,680 crores if I see for the smart meters. And for conventional meters, the tenders which are already been not quoted, but they're already been -- the NITs has been stated by the government is around INR 1,300 crores.

Okay. That was quite helpful. Sir, another thing, what is our current capacity utilization?

Currently, it is very, very low. As you all know, the numbers are pretty less. The capacity utilization is pretty low right now.

Okay. And when is the volume uptake likely to reach the pre-COVID levels?

I would say, in this quarter, there will be a healthy recovery. There will be a very healthy recovery from this quarter. This is visible to us currently. A lot of installations, which were going very, very slow, especially Rajasthan and Tamil Nadu, Haryana, U.P., I'm seeing a lot of recovery in all these states. Maharashtra is still very, very slow, which is very surprising. West Bengal is in the election mode. So they are in a different zone altogether right now. But a lot of other states have really recovered well, except Maharashtra, Kerala. South has not recovered the way we expected it to be. So there, a little slow recovery. But a lot of states have recovered pretty well.

Okay. And lastly, what is the peak revenue we can generate with our current infrastructure?

Peak revenue, you can look under the instructions. What are you saying Kailash sir?

INR 2,000 crores plus we can easily with the current infrastructure…

Yes, yes. Comfortably, we can do that.

The next question is from the line of Manish Goyal from Enam Holdings.

Sir, just want to clarify from the previous question on the smart meter share in the tenders. You mentioned INR 575 crores of smart meters out of INR 1,500 crores, sir, which are already quoted?

18.

Out of INR 1,800 crores.

INR 1,800 crores. And from the tenders, which are to be -- yet to be quoted, how much is that, sir, smart meters?

Yet to be quoted is around INR 3,000 crores, out of that INR 1,350 crores to INR 1,400 crores is conventional and INR 1,650 crores to INR 1,700 crores is smart meters. I'm talking of the estimated value.

Correct, correct. Okay. And does this include also any potential order -- basically tenders from EESL?

None of them is from the EESL right now.

Okay, okay.

Initially, they came out with some of their queries, but all have been dropped. So currently the opportunities which I'm talking, I'm not talking EESL.

Okay. And sir, on the -- I just want to get a -- you did mention that margins would be at 16% for next year. So is it after factoring that -- the commodity inflation what we are seeing currently as well as on the other side, shortage of chips for the electronic industry? So have we factored that? Or how is it if you can just…

Yes, yes. You will see that -- if you see the last quarter's numbers or even we have not achieved the full productions or full numbers, still our margins are almost around 17%, 18%. So we absolutely see that there will be an impact due to raw material from 3% to 4%. But right now, that will be covered, number one, once our volumes will be increased, our production will be increased. So we will be getting around 2%, 2.5% from that. And already, we are giving you a guidance almost 1%, 1.5% lesser than what we are achieving. So we have already factored -- in this 16%, we have already factored everything -- whatever the impact of 3% to 4% raw material is coming on because of these chips and everything. So basically, we expect better margins next year also. But to be conservative and after factoring everything, every raw material things and all, 16% is easily achievable.

Sure, sir. And on the competition intensity, how are we seeing, sir, in the current tenders and the forthcoming tenders? I don't know if you answered that, but I'm sorry if I'm repeating the question.

No, no. Competition is very much there, Manishji. A lot of intense completion, which we have been fighting for decades now. So we are well prepared for the…

This is no new competition. We can say that it's a normal competition, which was there earlier also, which will be now also.

So now these tenders, basically, is it that neighboring countries like China cannot participate in the tenders now very clearly?

Yes. Most of the tenders now also they even write, you have to declare how many -- what percentage of Chinese components you are using in the tenders, have gone through that level. Most of the tenders have come with this criteria, which is also helping a company like Genus very strongly. Because we are probably one of the very, very few companies or maybe the only company in the country where the Chinese raw material content is lowest by far than the competition.

Sure. Sure, sir. Okay, sir, and just last question on -- so this year, the first 9 months, the revenue is nearly INR 400 crores plus, so -- and our quarterly run rate or quarterly revenues in Q2 -- Q3 was roughly INR 170-odd crores. So as per press release, can we -- like should -- what kind of revenue can we probably end up for FY '21? Because -- although you have given guidance for FY '22, but just want to get a sense as to what can we aim for FY '21?

Anything between -- say, fourth quarter will be around anything between INR 225 crores to INR 250 crores. So lowest will be INR 225 crores and highest can be INR 250 crores seeing the current scenario, seeing the installation things and all. So whatever we have done, plus INR 225 crores is the lower side and INR 250 crores will be the higher side for this quarter.

[Operator Instructions] The next question is from the line of Vineet Agrawal from SKP Securities.

All my questions are answered. Thank you.

[Operator Instructions] The next question is from the line of from [ Girish Gulati ] from [ Quality Capital ].

My question is regarding like -- it's just -- I need a general outlook of what is exactly happening in the gas industry and where Genus can participate? And a few days back, there has been an announcement of gas exchange. So I just want to understand the gas dynamics, what will happen in the country in next 2 to 3 to 5 years? And can Genus play a big role in the cash dynamics of the country, please?

As I shared earlier also, we have been working on this product in the last 2 to 3 years. We are already there in the market with some pilot projects being completed. And because of the success of the pilot projects, now we've started getting some good numbers. As I shared that we received the order of 10,000 meters from Green Energy, which is a good beginning for that. So with this, I won't say very, very large order, but a significantly good order where we will establish further in the gas meter market. We are doing only -- we are very clear that our focus in the gas meters is on the AMR -- AMI side, where we bring a lot of value as an electricity metering company. We are very strong in communication. And all these models what are being coming in the now, gas metering pipeline is a reality. A lot of privatization has happened, as you all know. Torrent and Adani have been the major players in the country. Fortunately, we already deal with both these companies for electricity making. So for us, it becomes a very sweet spot when it comes to customer. All the other companies also mostly are [dive-in] companies in institutional business, which is very much our capability to handle. Genus is trying focusing on AMI, that is the long-term future for companies like us where we told, we bring in a lot of value for the communication company because most of these gas meters are giving a clear guideline and it is a choice of the gas trading company how they want to read the meters since getting into the kitchen of every household is not going to be easy. This is where a lot of AMI role will come into the picture. So we see Genus playing a very good role in times to come. I have given some guidelines in the past also. I am being a conservative individual, so I don't want to give a very large number. But yes, Genus is playing a very strong role in the industry, reaching to a size of INR 800 crores to INR 1,000 crores in the next 2 to 3 years is what we're expecting to do.

All right. And sir, one more thing. You mentioned that INR 2,000 crores turnover can be achieved on the current capacity. And if this be like what would be our target of reaching that INR 2,000 crores number? And secondly, what -- how would be the interest outgo look like when we reach the INR 2,000 crores turnover?

Interest on capital?

Interest outgo. Currently, like, I think on INR 1,000 crores revenue, our interest outgo has been some -- or the finance costs, I would rename it as [indiscernible]. So I was actually looking at the capital efficiency.

Basically, INR 2,000 crores, the way the government is talking about and the way the things are moving, if what government is talking will be on the floor, it can happen in the next 2 to 3 years very comfortably and very easily. We can even touch in '23, or for sure in '24 reach INR 2,000 crores number. And -- but in any case, we are not seeing any drastic change in working capital things and all. So there will be certainly an improvement in working capital cycle. So what when -- when we say today our working capital cycle is 200 days, it might come to 160 days or 170 days. It -- for sure, it won't be coming to 100 days or like that. So there will be -- you can say that whatever there is spending on INR 1,000 crores -- interest outgo of INR 1,000 crores, it will be almost 1.6x, 1.7x of that in INR 2,000 crores.

1.7x of that. Okay.

1.6x to 1.7x of that. Because there will be an improvement in working capital cycle. We are sure that it will be improved by 20% to 25% in number of days.

Overall. Overall or on the incremental part?

Overall. It will be on overall. It can't be like incremental -- or there is nothing like incremental or no incremental. It will be improvement on overall if it answers this.

The next question is from the line of Mr. Vijay Bhayani from Samyak Financial Consultants.

You've appointed 2 new independent directors on the Board and both…

Sorry, Vijayji, we could not hear. I could not hear you properly. Can you please…

Yes. I wanted to ask about the 2 new directors which are appointed on the Board and both have very fabulous profile. Can you expect what kind of role will they be playing in our operations going forward?

Like Mr. Subhash Chandra Garg, he is the Independent Director. So basically, he will be acting as Independent Director and seeing all the -- will be looking -- will be -- can be the head of financial committees also of the company and guiding the company with his experience because being in companies doing most of the government businesses and all, and he has a big experience of government things and all. So basically, his coming in the company as an Independent Director will help us more to deal with the government and to be more financially disciplined and everything by him. And when we talk about Dr. Keith, he is basically a -- he has a big experience of 25 years in -- with L&G, which is one of the biggest metering company in the world. And he is -- JK, I think you can better tell him about Keith, more better than me.

Yes, yes. Absolutely. So Dr. Keith Torpy, in the beginning also Vice Chairman shared about his background, he's a -- it's a big, I would say, achievement for us to have Dr. Torpy as part of Genus now. He comes with a humongous technical knowledge and the background from the world market. So 2 great values he brings in. On the AMI side, he brings in a complete end-to-end solution. He can -- he was also Innovation Head for Landis+Gyr. So he brings in a tremendous value and is working closely with our CTO to where the direction of the company should go. Because now we are moving from a product company to a complete solution company. And till now a lot of solutions in software, we are also outsourcing. In the times to come, Genus has to become an absolutely self-dependent company where the complete solution is also provided by Genus. And a lot of investments we are doing on the software side and on the solution development, Dr. Torpy will play a major, major role in guiding us in the right direction there with the kind of experience he comes in. And the way he has the network all across the globe, he will also be in a great position in which we are already feeling in this last 2, 3 weeks since he has been part of the company that suddenly there is a buzz and the response system of some of the people has improved. They are seeing Genus as a very strong technical capable company because Dr. Keith Torpy will not become part of a company where he is not sure that, yes, I'll be able to guide them in a right way and they are a company who has the capable -- capability to prove. Because it took us -- like the discussions are going on from last 3 to 4 months with Dr. Torpy and he has also done a lot of homework before he became part of Genus. For him becoming a part of a company is also very important in his career system that he has. So he will bring in a lot of value for our innovation, development future ahead.

I would like to add that it will give a big chance to Genus for increasing its global footprints because Dr. Keith has always -- almost dwelled a lot in America, Australia, and most of the time, he was traveling to a different parts of the world with L&G. And secondly, our CTO, Chief Technical Officer, Mr. Anukram Mishra, has worked in L&G with Dr. Keith. So they have very good bond. That's why Dr. Keith has joined us as a nonindependent director as all-time -- as a -- he will be providing full guidance to that.

Yes. So I -- further to what you've already illustrated, I wanted to understand what kind of time are they expected spend specifically for Genus Power? Will Dr. Keith be visiting here how often? And is there any kind of understanding about what kind of deliverables are they expected to do as yearly to Genus Power? So time and any kind of deliverables which [indiscernible] them?

See, Dr. Torpy is -- he's one guy which I've realized that he loves to work on the ground. So because of the COVID situation, he is unable to travel right now. But he will be traveling at least once a quarter, and if need be, he can -- he is more than happy to come even 6 times in a year and spend considerable time with the R&D team physically. At the same time, yes, he is available if you talk only of the arrangement, he is available with us at least 6 to 8 working days in a month where we can have full days where we can be on with him online. Plus, it's very difficult to define actually how we will be able to support because I see with his style of working in last 3 weeks itself, he's been very demanding and very up to the talk, which is very, very good for the company.

His deliverables will be extending the global footprints of Genus and bringing a lot of new technology things in Genus, which will help Genus to grow globally also and domestically also.

Excellent. So that means that going forward, we can expect export also, if not in the next couple of quarters, but over a period of time, export also to pick up significantly, right? So right now, the FY '22 target that was given of INR 1,200 crores, was it your conservative numbers plus [indiscernible] really accelerate that even higher than that? And further to that, do you expect surprise in terms of exports also would be much higher?

Your voice is not clear, Vijayji. I don't…

Okay. I was wondering if Mr. Keith will also help us accelerate our export strategy?

Yes, yes. For sure.

We take the last question from Keshav Garg from CCIPL.

Sir, I wanted to understand that after the demerger, what kind of net cash or net debt the company will have?

Demerger has nothing to do with debt or cash. There is no cash outgoing from the company with demerger, and there is no debt outgoing from the company with demerger. It's just the investment that is going out. So there will be no change in debt or cash position of the company after this demerger.

Okay, sir, so in that case, we are already net debt-free and sir, our share is trading below book value and sir, at the same level that it was trading 14 years back. Sir, so if you could consider a share buyback, sir, then it will reduce the number of shares outstanding and whatever growth you are expecting in future will get divided on a smaller base of share. Sir, so I think that will be the -- probably the best thing. Sir, so even if a small share buyback, if you could consider, I think that will be great for shareholders.

Yes. Keshavji, I will put your idea surely to the Board, and let's see what we all would and -- we will surely give a think to that.

That was the last question. I would now like to hand the conference over to Mr. Kailash Agarwal for closing comments.

Thank you, ladies and gentlemen, and we are very hopeful that the things will improve when -- from the fourth quarter, whatever the guidance we have given and whatever the guidance the company has given for next financial year, we will do better than that. I wish you all the best. Thanks a lot.

Thank you, everyone. Thank you.

Thank you. On behalf of Genus Power Infrastructures Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.