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

Ladies and gentlemen, good day, and welcome to Genus Power Infrastructures Limited Q2 FY '25 Earnings Conference Call hosted by Emkay Global Financial Services. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Ashwani Sharma from Emkay Global Financial Services. Thank you, and over to you, sir.

Yes. Thank you, [indiscernible]. Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Kailash Agarwalji, Vice Chairman; and Mr. Jitendra Agarwalji, Joint Managing Director. I shall now hand over the call to them for their opening remarks and post which we will open the floor for Q&A. Over to you.

I got disconnected. So have you started the call now? .

Sir, you are connected to the main call. Please proceed with the introduction.

Yes. Thank you. Good afternoon, everyone. A very warm welcome to the quarter 2 financial year '25 earnings call of Genus Power. At the very outset, let me wish everyone a very Happy Diwali and a prosperous new year. The results and press release are uploaded on the Stock Exchanges and company website. I hope everybody had a chance to look at it. Our revenue stood at INR 487 crores presenting an 88% increase compared to INR 259 crores in quarter 1 financial year '24. This growth was driven by robust execution in our Smart Metering segment. Our EBITDA for Q2 was INR 81 crores, up by 232% compared to INR 25 crores in Q2 '24. The EBITDA margin improved by 724 basis points to 16.7%, driven by the positive impact of operating leverage. Enhancement in operating margin was further bolstered by our initiatives to optimize operational efficiencies and control costs. This was achieved despite the rise in employees and other expenses driven by our ongoing efforts to expand the workforce and strengthen systems in preparation for the execution of the substantial order book we have secured. We anticipate sustaining our operating margins in similar levels going forward. Our PAT stood at INR 58 crores, an increase of more than 5x compared to INR 11 crores in Q2 '24. This surge in PAT also includes a onetime gain of INR 11 crores recorded under other income, stemming from the resolution of an arbitration segment related to a government project executed in 2007 to 2009. As on 30th September 2024, our total order book, including all SPVs and GIC platform stands at about INR 31,776 crores net of taxes. And these concessions are for 8 to 10 years. Our robust order book strategically positions us for sustained growth in the upcoming quarters. We anticipate full-scale execution to accelerate from quarter 3 '25 onwards. We are optimistic about achieving our esteemed revenue -- our stated revenue target of approximately INR 25 crores for financial year '25 with an expected EBITDA margin of about 15% to 16%. We are well prepared to navigate potential challenges associated with the large-scale execution of projects, while ensuring prudent cost management and effectively meeting financing requirements. We have also been receiving a significant number of inquiries from third-party AMISPs. And a lot of the LOIs are received. But we have a policy not to announce publicly the same on our -- on account of our company policy, which does not consider LOIs as part of active order book. We are exploring new opportunities in gas and water metering markets, both international and domestic. Overall, financial year '25 holds great potential for us as we capitalize on our robust order book, strategic partnerships and strong market position to drive substantial growth. We are confident in company's future prospects, fueled by our dedication to operational excellence, innovation and sustainable growth. We can now open the line for Q&A.

[Operator Instructions]. We have the first question from the line of Mohit Kumar from ICICI Securities.

Congratulations on a very good set of numbers. My first question is on the employee expenses. The employee expenses have seen a sharp jump, right? Having said that, given that you're executing a huge order, so we do expect some growth. But the question is, where do you think this number will settle down in F '25 and F '26?

On these employee expenses, this number will further grow because not only our execution is increasing and which will take a much bigger picture from December onwards. Lot of numbers will start coming. Apart from that, a lot of development work is also going on as we have mentioned earlier that we have one company which is doing HES, MDM also in-house, radio frequency also in-house. Because of that, a lot of employee strength has been enhanced all across. So this number will further grow. I cannot give any number right now where it will get settled. But yes, next 6 to 8 months, I see it continuously growing. Then it will take a stagnant phase.

But directionally, that actually...

Sorry for interrupting, sir. Mohit, sir, if you can please be a bit more loud?

Is it better now?

Yes.

So my question is, this INR 63 crores of employee expense -- you did say that you can't give a number, but some sense whether there were INR 90 crores, INR 100 crores per quarter, some sense of that?

I don't want to give any number right now. But yes, this will increase for next 6 to 8 months, then it becomes stagnant. That is what I can say currently.

There are a lot of third-party orders which are floating around, but we haven't seen you winning anything as of now. So is it -- are you looking at third-party order now given the fact that there are no -- no bidding is likely to happen or let's say the bidding intensity will lessen down from outside.

So we are definitely looking at third-party orders, and we are continuously supplying meters to all our customers. And we continue to grow that business also. We have always been known as the best meter manufacturer in the country and we continue to maintain our capability.

Sir, last question, sir, on the revenue target. I think you gave INR 2,500 crore target you've given, and we have roughly INR 900 crores -- less than INR 900 crores in the first half. So the run rate required for the H2 is quite steep.

But we are confident that we will achieve it. .

The next question is from the line of Aditya Welekar from Axis Securities.

Congrats for a very good set of numbers, sir. Sir, my question with regard to our order book. So how do you see it shaping further in H2 and maybe in future? Or have we now almost at the peak?

Currently, there are no live tenders in the market. And so I don't see that order book increasing for next 6 to 8 months. I don't see this as a peak because only 60% of the country is covered under the smart meters in terms of either tenders have been floated, orders have been decided, few tenders are still running. So 40% of the market is still remaining, which I feel will start -- tenders will start coming from the quarter 1 of next financial year.

Understood, sir. And sir, my second question is now any guidance you can give for FY '26 with respect to top line and margins?

So in terms of guidance, earlier also, we said we expect a 50% growth in the top line, and we maintain the same EBITDA level of 15%, 16%. So as on date, we maintain the same guidance.

50% top line growth in FY '26 over INR 2,500 crores in '25, you mean?

Yes.

Thank you so much. We have the next question from the line of Yash from Stallion Asset.

Congratulations again on a great set of numbers. Sir, I'm a little bit new to the company. So the first question I have was, I think you've given some acceleration on the volatility of other income, right? And this quarter as well, we've seen almost INR 63 crores of other income. So how -- if you want to model this, how do we sort of go ahead thinking about this number?

So basically, you have to understand that this is the -- other income is basically a notional number rather than an actual number because this number again has come due to the company is holding some shares in the trust and that is the value of the trust, those shares. So when you see the consolidated numbers, there is other income of almost INR 30 crores, INR 31 crores more than the stand-alone one. This INR 30 crores, INR 31 crores is basically because of the value of the shares in trust that has been increased. So we cannot give any figures on that or any guidance on that because that purely depends on the market. Tomorrow -- next quarter, you will see there might be a loss because of that. But these are all notional numbers rather than actual numbers.

Okay. Got it. And so given that we've got a very strong order book, almost INR 31,000 crores, and I understand this is over a period of 8 to 10 years. So at least in the near term, FY '26, I was thinking that we have been a little bit more conservative on 50% growth? Or do you think that if things fall in place, we can grow at a higher pace than that as well for FY '26?

See, I don't think so we are being very conservative. It is more on realistic because all these projects, which we are doing, the 8 to 10 years, will take a certain time to come to the full swing. That is the reason we are maintaining the same.

Sure. And sir, my last question is, so your interest cost, I mean, we will be taking more debt next year as well. So it's about -- it's run rate is about INR 29 crores in the quarter. Will we sort of maintain this or this might go up next year?

It will go a bit and more execution will happen, it will go a little bit up also.

Okay. So can we assume about INR 150 crores for FY '26, round about that number? .

It's not INR 150 crores, INR 140 crores. INR 135 crores will be a good number. .

We have next question from Bhavin Chheda from Enam Holdings.

Yes. Congrats on strong order book and improving numbers both on the top line and the margin side and a strong guidance. Sir, just a few questions. One is if you can update us on your expansion plan from 1 crores to 1.5 crores smart meters, where that stands? Second, also, if you can give us -- what has been the monthly run rate now of smart meters because you're maintaining a strong guidance of INR 2,500-odd crores as compared to INR 900 crores in first half. So basically, we require almost like INR 1,600 crores in next 6 months, which is like INR 250 crores to INR 300 crores per month kind of a number. So whether that October, there has been a substantial ramp-up in installation of smart meters or how -- your production and production of smart meters as well as installation of smart meters, has this run rate substantially gone up in the September, October, which month or when it would be ramping up?

So on the manufacturing expansion plan, it is a continuously -- we are working upon it. The new plant in Guwahati has already started, almost started, and it will be in full swing in next 1 month. So that expansion plan is more or less under the place, and we will be comfortably manufacturing 1 million meters every month. So that is well taken care. In terms of execution, even October, November, a lot of delays has happened because of the festivals, and they were very well known. So you will see the significant jump in numbers mid-November onwards. And it is very well placed. It's visible to us and what target we are giving, we are confident of achieving that. So what all these run rates -- I understand mathematically, this run rate will look very, very substantial from -- especially in the fourth quarter, but yes, you will see that happening.

Right. And if you can share any number on quarter 2 and first half smart meter volumes?

In terms of manufacturing or in terms of installation?

If you can share both?

In terms of manufacturing, exact number, I need to read that, but we have done around 2 million meters in quarter 2. Installation around -- installation has been 800,000 meters.

Installation is 800,000?

Yes.

Okay. And quarter 1 would have been, sir? .

Exact number, I need to...

Or first half cumulative number if you have that is also fine.

I don't want to put any number without having confirmation.

No Problem. First half number also, you don't remember? Okay. No problem, sir. Other question is on the fund infusion in the platform, how much has happened till date? And how much you are planning this year and next year?

So basically, the best thing is we will -- we are providing you the link for the Gemstar platform also, and you can visit the site of that platform and you can get all the information, the Genus shares also and the other -- the GIC shares also. So that will be a better idea getting all the numbers at one go rather getting -- and regarding next 1 or 2 -- next year and next to next year, whatever -- you will feel that we have to understand that the total outlay of Genus will be around $210 million and right now it is hardly $2 million or $3 million that has been invested by Genus. So next year, it will be around 40% of the remaining -- what we have committed will be there. And next year, again, a 40% number will be there.

So 40% in '26 and 40% in '27.

Remaining, '27 -- '28.

Remaining, '28. Okay. And this is for your 26% share. This is your equity portion...

This is for our equity portion. Yes.

So proportionate amount will be put in...

Will be [indiscernible] by GIC.

By GIC. Almost 3x of that basically.

Yes, yes.

Right. So both will simultaneously put or there are the different time lines?

Both will be simultaneously.

Okay, okay. So basically you're saying...

This information I wanted to provide to all attendants that we will be providing you a link, already has been provided to the sites also, BSE and different sites. On those links, you can go and visit the website of platform and get all the information regarding the platform.

Great, sir. Okay. And so just -- I'm just summarizing, you said $210 million, 40% amount each would come in '26 and '27. So that is almost like...

So these are again all broad numbers, that you have to understand.

Broad numbers. I'm asking broad number on...

And secondly on broad numbers also, you have understand that this is the equity envisaged on the basis of 50% debt and 50% equity in the platform. If there will be any change in that ratio -- that increases in the platform, this number will come down.

Sure. Sure.

There is a disturbance. There is a big disturbance, [indiscernible].

Sir, it's not from our side.

I don't know there's a big disturbance.

Okay. And the other numbers, sir, what has been the export run rate in...

Sir, can we take other questions also. You can again -- because... .

I have a last one. I have a last one. Export run rate and the inquiries in the export market.

The export run rate is a bit slow in the first 2 quarters of this financial year. And in terms of inquiries, we are working on some large potential customers. And we see -- and there is a very good traction, so we see export business also getting in very good shape from fourth quarter onwards.

We will take the next question from the line of Dev from Avendus Spark.

Congrats on a good set of numbers. So just wanted some insights on the top line guidance, you mentioned INR 2,500 crores. But if I look at the working capital, that has substantially gone up which is lading to a negative cash flow. So I just want to understand, as top line grows, how exactly will this look, sir, in terms of cash flow? How will cash flow move? Will working capital get better? Your insights on that.

Just to give an idea, that all these AMISP projects, the initial flow of cash is very, very high. So all these projects are ramping up and a lot of money is being infused currently. With the same number which we have introduced currently, you will get this revenue in next quarter onwards. So a lot of investment happens in advance. That is why you are seeing a lot of influx of the cash flow.

Sorry for interrupting, sir, your line is not clear.

Am I audible now?

Not very well, but yes.

One second. Give me 1 minute.

Sir we can proceed with the next question, and you can rejoin the queue. We have the next question from the line of Chandresh Malpani from Niveshaay Investment Advisory. Please go ahead.

My question is related to previous participant only. So my question is regarding the high trade receivables. So it's more than the half yearly sales which we have done. So just to understand the perspective that since we are selling to the platform, and we will be receiving our payments in 60, 75 days. So why are these receivables so high?

So these receivables are very high because the arrangement with the platform is, once we install the meters, we have to do the site acceptance test. And once the site acceptance test is done, the product goes on live. And when the project goes live, then you start receiving the CapEx payment from the platform. And all this process takes minimum 90 to 120 days because there is a process of doing the [indiscernible] the time line that it has to run for 45 days under the Disaster Management Recovery System. So these are all the guidelines given in the RDSS. Accordingly, these projects are running. So that is why all these projects are starting initially and most of them are under the [ SIIT ] and SEB. So operation go-live takes time. That is why I said earlier also, initially, you will see any project which is getting started, there will be a lot of influx of the capital initially. But after 6 to 9 months, you will see this working capital getting normalized significantly.

Okay. Sir, with respect to that only, if you can get a number [indiscernible] the number of projects that have gone live for Genus and like since our quarterly...

So currently, our four projects are already live; 3 in Assam and 1 in Bihar. And the projects which have already been offered to go live, which will take 2 to 3 months to become live, will be [indiscernible] from Chhattisgarh, from Uttarakhand, one more project in Bihar. So all these projects, you will see a lot of these projects becoming go-live from January, February onwards.

[Operator Instructions]. The next question from the line of Darsh Solanki from Axis Securities. .

Congratulations for the good set of numbers. Sir, my question is regarding the installation target. So from the national smart grid meter website, you can see that out of the 25 crore smart meter installation, 22.2 crores have been sanctioned and 12.7 crores have been awarded. So do you have any idea on the balance tender like what's the status and by when do we expect this tender?

So all this 12.7 crores has been already sanctioned. There are a lot of projects which are coming that there are tenders which are live. There are tenders which are to be quoted in the next 3 to 6 months, and they will be -- so as I said earlier, influx of these tenders will happen from next financial year onwards. I don't see a lot of orders being finalized now in this -- any orders significantly being finalized in this financial year. And all these target as you -- all these targets of 27 months, there have been delays from the field execution side also. So it is -- in the due course of time, it is happening.

Understood. So you are saying that even in the -- when to get new orders, even our order book will get new orders probably from the next financial year onwards.

Yes. This financial year, I don't see any significant orders getting decided.

We have the next question from Dev from Avendus Spark.

Yes, can you hear me better now?

Yes, please.

Yes, just -- my next question was just on the revenue recognition front. So can you just help me in terms of understanding how exactly does revenue gets recognized once you pick on a project, et cetera?

So basically, that's a state as we supply to any other one. We are supplying everything to the vendor to the platform.

And Genus is booking their revenue as we are booking to the others?

Yes. So basically, here, we have to understand very clear that basically Genus as this platform is an AMISP, like we supply to others, it is the same we are supplying to the platform. The only thing here is that we are doing all the work for that platform. So for dealers, revenue recognition is the same. There is no change in that. .

[Operator Instructions]. We have next question from Amit Kumar, who is an individual investor.

Congratulations on the great set of numbers. So my question is we have long-term borrowings increased from INR 78 crores to INR 494 crores as on 30 September, and we have INR 759 crores of bank and cash balances. So just wanted to understand why we are using debt if we have a sufficient amount of bank and cash balance available. This is my first question.

So your first question, let me answer your first question. So whatever this long-term debt that has been increased is the -- for the Bihar project, which is the company is doing on Genus Power's balance sheet. There is only one project which is being done, and this is a 1, 1.5-year old project with Genus -- the first project the Genus bought. And that is being done on the balance sheet of Genus Power, not on the balance sheet of platform. So here, all the investment for this particular project, even the CapEx for initial capital outlay and everything is going from Genus. So basically, that is the amount that has been taken by DFC, U.S.A., and that is used for that project, #1. And #2, regarding the cash and cash balances, company has a policy to keep some cash and cash balances always because what we are increasing our growth in multifold. And always, you never know that there might be some hiccups coming. So always we -- as a policy of the company, we want to keep some buffer with us, so we can use that, whenever required.

Okay. And the second question is there are [ INR 927 crores ] of receivable as on 30th September and INR 900 crores of revenue is for H1 and receivables are more than half year revenue. And in previous con calls, we guided that receivable days will be reduced as platform will collect the money. But I can see cash from operations is also negative. So just wanted to know what are the debtor days as of 30th September and what actions we are taking to improve our receivables and cash flow from operations?

So as I clarified earlier also, all these projects are getting started, almost all states, whether UP, Chhattisgarh, Himachal, all the places where we got orders in the last 6 to 9 months, these projects are getting started. And initially, there is a lot of capital infusion happens in these projects. We have to supply the meters, install them, offer them for the SAT. And once they are offered, it takes 3 to 4 months to become go-live. So that is our initial capital...

I have not made any call notes. Yes, sir, I am listening.

So that is the reason there is a huge amount of data being seen. 6 to 9 months down the line, once most of the projects are go-live, then you will see improvement in the working capital. .

Okay. My last question is, as I can see, there is a substantial increase in employee cost. Could you provide the number of employees as on 30th September versus -- 30 September '24, 30th September 2023?

I don't have it exactly right now, but we can always provide you.

We have next question from Chinmay Kabra from Emkay Global Financial Services.

We are currently at a capacity of 1.1 million per month, and we have been planning to increase this to 1.4 million. So just wanted to know what is the time line on that?

No, we are not planning to increase the capacity to -- I could not get your question exactly, but we have been always maintaining that we will reach a capacity of 15 million meters annually.

I think, for the expansion [indiscernible] if I'm not wrong, right?

There is some problem in today's con call.

Am I audible?

Please go ahead.

We have always maintained that we will create a capacity of 15 million meters annually. We are almost there. .

We do see the operations commenced for the 15 million by this quarter or from Q4 onwards?

From Q4 onwards, we will be comfortably manufacturing more than 1 million meters monthly. And whenever needed, we can easily extend this.

Understood.

We will reach the target where we wanted to reach. In the next couple of months, we will reach that target.

Understood, sir. My next question was, I understand if you can't disclose the third-party orders that you have been getting, but I just wanted to understand the proportion of the total order book, the third-party comprises of?

The proportion will be much, much less because primarily, our order is with the platform. And there are very few AMISPs, we are supplying meters and there, the order is only for the supplying of meters. So in terms of value, the proportion will be very, very less.

So we can maybe take a ballpark of maybe 5%, 7% of the total order book, is on a ballpark basis?

I think 10% will be a safe number. .

10%. Understood, sir. My next question was, we have PM Surya Ghar, I mean, a policy of the government, which has been focusing a lot on installation of solar capacity of and residential houses. So I just wanted to understand, since we do also manufacture net meters, are we also seeing any traction from that end, if any?

We are definitely seeing a traction on net meters, but slowly and gradually, all these net meters will convert to smart meters because the smart meters have both the facilities. So there is a traction in net meter, but that is very, very small period of time. I think most of these PM Surya Yojana will go for smart meters.

Understood. So eventually, we do see this coming into the NSGM itself? Or do we see this as a segregated market going ahead?

It is a segregated market where we are selling in the open market. And sometimes there are a lot of discoms, which also buy it directly from us and then supply it to the people who want meters.

We have next question from the line of Pranjal Mukhija from Growth Sphere Ventures Limited.

I actually have just one question, sir. Sir, if you could just break our current order book of INR 37,776 crores into the AMISP O&M work that we are doing and into the [ meters ] we are manufacturing. Can you just give us a split of this order book? .

So currently, I don't have the split of...

Ballpark will also be fine, sir.

So ballpark, we have always maintained earlier also that it is 45% is supply of meters and installation, around 30%...

[ JK ], this is not the question, I think. Can you please repeat, again, that question?

Should I repeat the question, sir?

Yes.

So I just wanted to understand the breakup of this order book into the AMISP O&M work that we're going to do over the next 8 to 10 years and the meters that we're going to -- that we are manufacturing and selling. So I just wanted to understand the breakup between meter -- actual meters and the AMISP work.

So I think I understood it rightly, and this is what I was delivering. So in the total order book, whatever we are supplying to the platform, that order book can be divided into 3 parts. So around 45%, 50% is the meter supply and installation, 25%, 30% is O&M because different contracts have different [indiscernible] and 20%, 25% remains with the platform. So this is how the breakup will happen. And out of this INR 31,776 crores order book, 90% is from the platform itself.

We have next question from the line of Akshada Deo from VIVOG Commercial Limited.

I wanted to know more about the Promoters shareholding. I'm noticing again that in this quarter end, we had some reduction in the Promoters shareholders. I just wanted to know why?

So basically, there is a reduction in Promoters shareholding from last quarter. So promoters have brought in some new big investors like Nomura to [indiscernible] its shareholding list and all. So Nomura just wanted to have some shareholding in the company, and they approached us and we found a very good name, a very good investor who can be very useful to the company in future? So we diluted some shares to them.

Can be the entire 3%? Almost? What percentage of dilution? What percentage...

Total was around 3%.

Okay. So all 3% was sold to Nomura?

So basically, most of that has gone to Nomura.

Okay. Okay. Are you planning on any more stakes here? .

Not right now. .

The next question is from the line of Anurag from Multify Wealth.

Sir, the initial part of the call, you mentioned that we are developing RF technology and HES technology. So could you just throw some light on that? And if once that is developed, could that lead to increase in margins?

So it is already developed, as I said earlier, because of this, our manpower costs are increased or increasing significantly in last few quarters, and it will further to increase in the next few quarters because we are one company which is doing all the technologies being designed and developed in-house and implemented by us. So HES is already getting implemented. MDM is already getting implemented. That is why there's an increase in number of people.

Sir, as per my understanding, we are procuring RF technologies from Itron, if I'm not wrong.

So Itron we bought -- so Genus is one company, which is flexible. We work with everyone. There are customers who say like a couple of our international customers, they want us to supply meters with our Itron's RS. We are doing that. There are a couple of customers who want us to supply with a different RF technology. So we do that. In India, most of the AMISP projects, which we are executing directly, we are using our own RF technology and our own cellular technology.

Got it. Sir, on the second question, I've been hearing more about execution challenges at installing smart meters because there is some unacceptance from customers because it is -- we are shifting from postpaid to prepaid, and there have been some controversy regarding smart meters also. There's a lot of states have paused their plans. So what is your view on the execution part? When can we see that pick up? On a general policy level, how can government help us execute this better?

So in bits and pieces, these issues are coming, and they were very well expected. Absolutely nothing unexpected because there's such a huge change happening in the country where all the meters from postpaid are converting to prepaid. All the meters are, from conventional electronic meters, are becoming smart meters. So there will be understanding gap from the consumer also. But there is a very strong drive from the government and it's a necessity. 99% of the consumer understands it. There's only 1% people, sometimes, they create some noise we got on a smart meter prepaid. So there is an absolutely dedicated effort happening from the side of the central government, from the side of the state government, from the discoms, from the AMISPs to continuously telling the consumer the benefit of smart meters. And one thing is for sure, smart meter is a necessity, not only for the discoms -- more than the discoms, it's a necessity for the consumers. And slowly, gradually, these consumers are very well understanding it. And there has been a significant acceptance. If you see Bihar, more than 5 million smart meters are being installed and almost 4 million are prepaid. And they are running very successfully. And Bihar is supposedly one of the lowest in the per capita electricity consumption. Still, it is more successful there. So slowly, gradually, you will see acceptance going everywhere. It is already there. But yes, there have been hiccups, which have been taken care of.

But sir, just as you mentioned, we are -- the acceptance is there, but it also has a very high AT&C losses. So like for states like our -- union territories like Delhi or Maharashtra or Gujarat, the AT&C losses are not that high. So are you seeing some challenges in these places?

So sir, if there is a consumer resistance, then it should be more in Bihar because the AT&C losses are very high. And once you install the smart prepaid meters, it reduces bit time. So imagine you answering your question yourself where the AT&C losses are very high, still the acceptance of smart prepaid meters has been there. So consumer is seeing the benefit. So I'm pretty sure it will be much easier in Gujarat and other parts of the country.

[Operator Instructions]. We have next question from the line of Aditya Welekar from Axis Securities.

So my question is with regard to water meters. So is there anything concrete you can share with respect to the recently launched ultrasonic water meter to Australia, its potential to get converted into order or revenue and which can contribute to our top line?

So currently, we are working on 3 to 4 projects globally on the water meter front. So these are all very long gestation period projects. So we started this journey not -- the news is coming today. This journey started almost 3 years back, and we are in the right path. The first plot has been accepted. We are expecting some good orders, but you will see the significant numbers coming from these projects in -- after 3 to 4 years. It is not going to happen something tomorrow. But yes, we are on the right path. We are very confident that water will become a very significant portion of our business in the next 3 to 4 years.

And anything on gas meters, sir? The conflict...

Gas meters, we are primarily focusing on the domestic market. We are a regular supplier. We are doing it from last 2, 3 years. For gas meters, the product line, what we have created and developed and we are focusing primarily on the domestic side of the gas meters. And this is -- I always -- as stated earlier also gas meter business will be like what electronic energy meter for electricity we used to do. It will be that -- even a little smaller than that, that kind of normal market, which we also, as an important player in the market, will continue to supply to all the gas companies.

Ladies and gentlemen, we will take this as our last question for the day. I now hand the conference over to Mr. Jitendra Agarwal for closing comments.

Thank you all for joining today's call. The progress achieved in the first half of financial year '25 underscores our strong execution capabilities and the strategic initiatives we have implemented. With a robust order book, innovative solutions and a dedicated team, we are well positioned to seize upcoming opportunities. Our focus remains on enhancing operational efficiencies, expanding our market presence and pursuing new growth avenues in smart metering and related areas. We look forward to both the opportunities and challenges that lie ahead and reaffirm our commitment to sustained growth and long-term value creation for our stakeholders. If you have any additional questions, please contact SGA, our Investor Relations advisers. Thank you, everybody. Wishing again everyone a very happy and prosperous Diwali to you and your family. Be safe. Enjoy the holidays. Thank you, everybody. Thank you.

On behalf of Emkay Global Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.