Shree OSFM E-Mobility Limited (SHREEOSFM) Earnings Call Transcript & Summary

Good afternoon, everyone. Thank you on behalf of Kirin Advisors and welcome you all to the conference call of Shree OSFM E-Mobility Limited. From management team, we have Mr. Nitin Shanbhag, Chairman; R. C. Patil, Managing Director; and T. Shivasandhi, Chief Financial Officer. Now I hand it over to Mr. Nitin Shanbhag for opening remarks. Over to you, sir.

Thank you. Thank you very much, and thank you all participants for joining on our Wednesday afternoon. It's good to see all of you out here and we are proud and pleased to share our progress over the last couple of years. I'll just give you a brief introduction. We are a 21-year-old company is the people mobility business and have been consistently growing at a pace of 15% to 20% compounded annual growth. We are a Mumbai-based headquartered company and our presence in pan-India. We had a very good run, '23 post-COVID where the world was facing tough times. And as was usual, every business was taking a hit, but we were very optimistic because we are constantly in touch with our clients, and clients had complete confidence in us. So '23 was a good recovery year and '24, we registered with a good 44% hike on '23. So going forward -- going forward, we see a very robust growth in the -- around November '23, we came out with the IPO, which was a good success, thanks to all the investors, thank to all our advisers and our management team, which has been with us are -- not only our management team, our entire employee strength who continue to be with us even during the tough pandemic times. That was -- I personally, as a Chairman, measure that as a success because those were completely unknown times, retaining -- and retaining the confidence of our employees. So when we not in the -- we were not in the public sector. So it was very important for our clients to have confidence in us and more than the clients the employees to have confidence in us that this company will offer a great future. That is completely reflected in our '23 balance sheet in our '23 turnover, and the progress and the growth that we have registered in '24. '24 we closed at INR 119 crores, which is evident. I think everybody has the reports that we have shared. Going forward, we are going to leapfrog. We are going to have a very good robust growth. The pipelines are already in place. My entire team and our clients have shown company confidence in the management to take this forward. So on a very conservative note.

Sorry, sir, we can't hear you.

We can run through the financial figures of '24, is that good enough?

Yes.

Or do we take the Q&A now or take the Q&A later.

We'll take the Q&A later.

Okay, fine.

You can explain the financial overview.

You want me to do that or the CFO will do it?

Good afternoon, sir. I'm taking over.

Yes, please do that, Shiva sir.

Yes. Good afternoon, everybody. This is Shiva here representing Shree OSFM E-Mobility. I have great pleasure to present you the results you must be have -- all of them must be have in the copy, but I will just run through that. In FY '24, our company achieved significant financial growth compared to financial year '23. Total income rose to INR 119.6 crores from INR 82 crores, marking a 44% increase. EBITDA improved substantially, reaching 14.15% up from 8.2% for reflecting a growth of 71.75%. This also led to an increase in EBITDA margin, which rose from 9.97% to 11.89%, a change of 1.9 basis points. Net profit showed a remarkable rise climbing to INR 8.10 crores from INR 2.91 crores, which is almost 178% increase. This growth in profitability improved the net profit margin from 3.53% to 6.81%, a gain of 3.28 basis points. In conclusion, I would like to present that FY '24 has been a transformative year for the company with our recent listing on NSE, strategic funding initiatives and robust operational achievement, we are well positioned for continued growth and excellence. Our commitment to the quality, customer satisfaction and sustainable practices remain steadfast to aim to further enhance our service offerings and expand our market presence. That's it on my side, we can -- any Q&As are there, we can open it.

[Operator Instructions] First question is from Vivek N.

My question to the management is you posted a spectacular results. And I'd like to understand, with this come as a surprise to the market? Or were you always guiding for this performance. And if you can also give a guidance for the year to follow, understanding that you are an SME company and obligated to only announce your results half yearly. So there is usually in SME companies, the stocks are pretty volatile because there's not much of information flow between 2 announcement of results between -- in a 6 monthly period. So having a long-term guidance of a year or 2 will help us gauge the sector and the company and how we're looking at things.

Shall I take this question.

Yes, sir.

Yes. Okay. Sorry, come again. I mean, come again with your name, please?

Vivek is my name.

Vivek, thank you. You have really pinpointed the -- your question is a very pinpointed question, especially in the SME segment. We go 20 years back and operated as a private limited company. You're perfectly right. Okay, but we have been a completely transparent company internally and externally. We continue to do that because that's been our DNA, one; second is, this growth is the growth that was planned. We work on a very focused kind of our performance -- because earlier, we were running this company for ourselves and our employees and our clients. Today, the scope has expanded to our shareholders. The underlying principle is very simple. We have not lost a single year. There has not been a single year where we made losses. Our focus is very clear. Any business has to make money. Any business has to make profit. This IPO is a super additional booster for us to go to the next level, which is reflecting in the growth of -- my next year's conservative -- our next year's conservative projection is 35% to 40% conservatives, ultra conservative growth because, unfortunately, as you rightly said, SME or any, it is better to be under committing and overperforming, that's the model. But yes, 40% -- 35% to 40% growth is assured. This is the mapping of just the organic growth. We also have in pipeline run -- we have had extensive discussions where we are looking at inorganic growth also. But we are going to be extremely selective about the companies that we choose to be a part of us in the inorganic sector. So does that help you, Vivek?

Yes. So if you can also throw light on what is the growth strategy, both organic and inorganic because organic means you're obviously going to have, as you have mentioned. And from your website, you have opened a lot of offices across the country. So obviously, coverage is increasing. We will probably penetrate by having more vehicles, which is, I think the proceeds of the objective of the IPO was also there.

Correct.

So you are the bulky you are selling for covering the mainstream market, which is the MNCs and other companies that have been catering to. So that is one...

Correct. Right.

It is when you mentioned inorganic, what percentage of your growth will become inorganic? What are the strategies? And what percentage of expected to come from organic. And since you said you are going to guide for, let's say, 40% to 50% growth in the near future. How are you looking to gain that 40% to 50% is it going to be organic? How much organic, how much inorganic?

As of now, as I said, Vivek, we are in discussions with inorganic partners. We have already always run this company on a purely organic basis. So just for the sake of a top line, we are not going to go blindly into the inorganic sector. We're going to be very choosy about which companies we select because there is a cultural adjustment also that is required. So the projections that we are giving is completely controlled projection that we have in the inorganic sector. In the inorganic sector, probably by the next 3 months or 4 months, we'll be able to give you a correct projection about once having identified the companies that we would want to acquire. So right now, the projection is pure-play organic. Yes. But I can give you an indication of about 20% -- 20% could probably come over and above the organic 20% could come from the inorganic side.

Okay. My final question is you are probably among the very few listed players in this particular segment, which is called people movement, if I understand right.

Correct.

If you think a very established market in terms of the listed universe, unlisted there are plentiful companies. So if you have to look at the listed market, is average and what other firms would be the kind of firms globally that we'll try to understand to see how the market has developed and what really is, as they say, right, what is the destiny for this sector of companies?

Yes okay. See, now these kind of progressions, we were the first ones to get listed. Thanks to our advisers, thanks to our -- we jumped into the SME market. And as things progress, yes, they will be more visible. Maybe there will be more companies who would want to come into the SME IPO segment and a journey can be set, there will be benchmarks, there will be -- companies where you can compare. So yes, the journey that's why we are confident. The journey has completely started, which will also help into consolidating the market from an organized sector. Unfortunately, this was considered as an unorganized sector, but these steps like IPO, multiple other partners joining in other companies coming in, it will be more or less an organized sector.

Yes. I asked for listed firms globally, which we can look at. Is Avis is listed firm that you consider as one of...

Avis is not listed in India.

Okay. I'm saying globally, anywhere. Globally.

Yes. Globally, honestly, I don't know the entire focus now is moving towards green energy, green fuel. So how is -- Avis has not been a major player even in the India market for the E initiative.

Okay. So I think probably in India BluSmart kind of companies unlisted our peers in the trade. I'll probably stop now because there's an audience, and I'll probably get back into the queue.

Vivek, I would like to add something here in -- for the benefit of shareholders and upcoming new shareholders who are going to join, we are planning a regular presentations like this. This company update. So I don't have to wait for half year or a yearly update.

That would be very helpful. And if you have a deck already on your website, then probably I can look at it. If you don't then we'll wait.

Yes. So that we will be we are planning.

Next question is Pranay Jain.

And like your colleague said, we hope that this can continue, at least on a quarterly basis, if not half year, at least that is we can have.

Surely. We will do that.

Great. So my question is, could you help provide segmental revenue contribution across fleet event management, travel desk and roster. And how do you expect these pieces to grow or scale up over the next couple of years, given where your thrust lies on fleet, I understand. But how would the other piece also contribute?

Pranay, this is -- see, there is a certain internal information. Over the period of -- we would talk to you about the consolidated company growth sector-wise within our -- within the scope of our offerings, our verticals. So maybe in the near future, we'll be a little more clear in terms of offering you or maybe on a specific one-on-one level, we'll be able to offer you that because specific information generally doesn't help the shareholder in assessing, right? It is generally the larger turnover that matters.

I agree. But for FY '24, at least the year that is closed, will you be able to provide that?

Shiva, can you take this up?

Yes. Sir, we are majorly focused for MNC clients and ITES as you must have seen on the website.

Yes.

So our major focus is on continuity of business. For example, now you are saying the logistics for corporate event. It is a onetime event like, for example, some big organization, or an government organization or an big event happens. So they require a fleet of buses or cars. But our major focus is on MNC business, which is like substantially continuity, where the contracts are signed for 3 to 5 years. So majorly the 90%, 95% will be from our regular employee transportation movement.

I understand. So fleet will account for the bulk.

[indiscernible] extra income for us -- when, for example, something like a Commonwealth Games or Asian Games happen on the biggest level or like recently our -- Modi had addressed they required huge number of vehicles from outside.

This is helpful to understand. But for FY '24, is it possible to get a sense how much fleet accounted for and event management accounted for how much?

No. That is why I'm saying 90% to 95% is from fleet -- employee movement.

Okay. And regarding this, I wanted to understand since most of our clients, like you said, are expecting. A lot of them are on the tech [indiscernible] so could you at least tell us what is the logo addition or the client addition that we have had in recent months? And also, what is the increase in wallet share that we have experienced in the year gone by from the existing clients as per the contract that we have signed for the next 3 years or so that you have indicating?

To give you a feedback from last -- whatever has happened, last 10 years, we have not lost a single client.

That is commendable.

Yes. And because of our quality and services at all times, we are the first-mover advantage. Like anything happens any expansion, any additional requirements, whether MNCs or anybody, we are first invited to give our capabilities.

That is excellent. That is very heartening to know.

Yes. And our website contains all the clients' latest which is there and some of the -- lined up are in the signing mode.

So those which are signed or those which are shareable, I was asking what is the number of logo additions we have had in the recent months or in last year. Like, for example, in FY '23, how many clients did we have? And as of FY '24, what are the clients that we are closing with, the number, and...

The number for '23 and '24 will be almost similar. And we can only look at adding more companies. Shanbhag, sir, right -- am I right?

Yes. Pranay, we will be able to give you a consolidated information, not regional information because we're in a very competitive market. Okay.

Yes. I'm happy to get the consolidated number, if you can share the change in FY '24.

Pranay, at the end of the day, all this contribution comes from the clients, whether it's B2B, B2C event management or any of these kind of things. For us to go into the macro thing is something that we'll have to talk to our legal -- we'll also talk to our other advisers that is it feasible? You are a well-wisher, but we have competitors also in the business.

I understand and I also gather the sensitivity of this. I'm not looking for names if you cannot share that. But let's say, if you had x number of clients in at FY '23, at Fy '24 is it x plus 5 or 10.

Yes, that information, definitely we will share with you. We will market as soon as this call is over, yes, the addition that we have had clients over '23, yes, that is a specific information that we can give you. Shiva sir, you can ask our sales team to prepare this saying that in '23, we had x number of customers, '24 this is the addition. And...

[indiscernible] after this concall, by evening, we are uploading a detailed presentation of the company also, Mr. Pranay. We will have a complete list of the clients. And to answer your specific question, like last 2, 3 logos, which we have L&T Mindtree is there. British Telecom has been added and alliantgroup has been added.

Shiva, sir, I think we can share that information on a consolidated model -- okay, post our meeting. Pranay, sir, we will definitely send it across to you. If we share your e-mail ID with Kirin Advisors, we'll do that for you.

It is already shared with them, and I look forward to going through this thing.

Sure, Pranay.

That to the same question is the second part, since you are aware of the competitive nature of the business -- just wanted to understand how are we looking to differentiate. One is quality of service and being flexible to our customers' requirements. I understand that which is why we have never lost a client, and we are perhaps only gaining wallet share, and that kind of reference list is helping build customers in the same segments and from other sectors. I understand all these positives, but strategically, is it possible to share how are we going to differentiate though the market size is big, but any different things we are doing compared to competition like WTicabs or Meru or whichever other names there are on your Board list?

Pranay, what we differentiate -- as I told you, my top line, my EBIT, my PBT will reflect how am I different? The very fact that we are growing, and we are continuing to grow and add, there's something specific. So as I said, Pranay, there are certain things, I'm in a competitive market, and I understand you've done your study well because you named WTi, you named Meru. So you have definitely done an industry sector study. So for us to share the information as to why we standout or what is it that we are going to differently. We will not be able to share Pranay, as of at the moment.

All right.

Yes. We will -- see, at the end of the day, my top line is going to grow from my customers, putting their trust in us and giving us more business. Yes, you are very clear, and we are very clear. Our main thrust is going to be we are a pan-India company. Headquartered in Mumbai. Our percentage share pan-India was low. That is where our thrust is going to be. And that is where it's all going to come in. As far as sectoral things are concerned, yes, we have a couple of things in the pipeline, and that will get reflected. That's why this guidance is a muted guidance.

I appreciate your conservative guidance. And I also sort of commend your candid nature, you are in the process of understanding what can be shared and your strategy is still being developed. I gather that. So I will just ask one last piece. What is the outlook on the number of vehicles we look to have in FY '25, '26, and how many cities do we want to operate in or how many trained drivers do we want to have? I know you perhaps will not be able to give whether how much of them are on salary versus revenue sharing, but at least whatever in terms of footprint, vehicles, the kind of vehicles will be -- that will be EVs, if you can pass that information?

Pranay, we are asset-light specialists, we are an aggregator specialists. Yes, the focus and the trust is, in fact, we went to the market with a clearcut focus, which reflects in the company, we are an e-mobility company. So our complete focus is on that, coupled with the experience and expertise of our asset-light model. Numbers, yes -- numbers, we will -- there are certain numbers that we have mentioned in the RHP during the filing document. Over and above that, our entire focus, in fact, today, 95% or 96% of the vehicle fleet that we have is completely asset light.

It's just that your site says that we are in 10 cities.

Yes.

So wanted to know what will be your footprint a year or 2 down the line? And how many vehicles from 1,400 will we grow to?

Conservative estimate, I think if I match it up with what I've said, you can easily take it as a 30% since we have mentioned the 35% to 40% growth. That 40% growth would be the addition in the fleet. Now whether the composition is going to be an EV, whether a electric bus that remains to be seen, depending on the market situations, no, that particular market, what it demands?

Got it. And if I may ask one final question. Is the airport transport, hotel transport and important business, or it's a small growing business while the focus remains on catering to IT, MNC, BPO player?

No, we have airlines as our customers. And we are expanding the footprint -- we are expanding that footprint.

Mr. Pranay, you want to know whether we are going into taxi service at airports, right?

Yes.

Yes. Right now, our focus is not there, but we are servicing a lot of airlines of pickup and drop for the pilot and crew. B2B.

Got it. So we're not currently looking at airport having our taxi station there?

No. If you see we are right now not looking at it. We may look at it into the future once the fleet size may grow.

Pranay, one of the things is in this -- yes, our -- it is in the pipeline and our entry there could be a possibility of a inorganic growth. Let me give you that indicator.

All the very best for that.

[Operator Instructions] Next question is from [indiscernible].

A lot of the questions that I wanted to ask have been asked and answered. Sir, there were just 2 clarifications. In the financial set you reported, I see that the depreciation is actually a negative entry and there is a substantial drop in depreciation. So I'm pretty sure there is some explanation for that. If you can give that it's like, I think, a swing of around INR 3.5 crores. So what exactly happened there? Second, what you have bunched up together as operating expenses can go through them. I'm trying to figure out the margin expansion, which has happened, what exactly has led to that? If you are an asset-light model, which clearly is reflected through your balance sheet. I was just wondering, what kind of operating leverage your P&L will have because you don't have that much of an asset base. These are the 2 questions.

Mr. [indiscernible], regarding depreciation, actually, full year depreciation was taken into consideration instead of 6 months. So that is the difference in that depreciation part. And into your second question of what was it? margin?

So if I look at your -- so just coming initially to this depreciation thing. Why was this done? In 6 months, you have taken the entire year's depreciation, why was this done? It's not in accordance with the matching principle of accounting, right? You have like -- the first half was like dramatically understated. And it seems that the second half is slightly overstated. So why was this done, this depreciation entry like this?

This is Kiran from accounts team. I want to answer this question. In the first half, we have -- we can say we probably put the depreciation -- we have treated full year depreciation as an expenditure in the first half. That's the only -- which the depreciation has been increased in the 6 months. And later on, we have revised that depreciation. In the full year , we...would be a as the expenditures in the first half year...

Okay. I get the picture. So basically, I need to half the first -- the total depreciation is fit into 2, right, that would be the right -- okay. Second, sir, the second question was this operating expense line items that you have, which is the point a of the point c in your P&L, of what costs are added there? Is there like breakup of that, if possible. Is it completely variable in nature? This will grow proportionate to the revenue. Or will it be -- I mean are there any fixed charges here?

As I say, what I would like to do -- we can tell you the details separately.after your query. You can drop your e-mail ID on that query list.

Okay. Okay.

Yes.

So because I was just trying to figure out what exactly is the proved reflection of the EBITDA. So you guided to the further -- revenue growth for the coming year, what should be the EBITDA margin that we should be anticipating? Should it be equivalent to the full year EBITDA that you have reported -- EBITDA margin that you have reported.

This is Kiran here again. Actually, in '23, '24, the fixed expenditures like you can say the semi-variable expenditure, that is employee expenditure remains same for the year '23, '24 as year '22, '23. That's the main reason that our EBITDA has been increased by 1.9-odd percent because the employee expenditure that is the major...

Employee expenditure has actually gone up by almost 50%.

No. Actually, employee expenditure hasn't gone up by 50% because prior in the '22, '23, we are doing the business for 10% to 15% of our business is sub vendorship model. But in '23, '24 we have done the business under our supervision. And that's the reason we have hired a few more employees. to do that business. That's the reason...

Okay. I think there is something off here because your reported numbers says that employee expenses went from INR 4 crores to INR 6.5 crores -- INR 4.2 crores to INR 6.5 crores, which is 50%, right? I guess you are talking about something which is included in operating expense, right?

[indiscernible] the main reason, as I said, in '22, '23, we have 15% to 20% business which are on sub vendorship model. That means the expenditure have been by the -- won by the sub vendors. But in '23, '24, we are doing our 100% business on our own supervision. So the employee expenditure has been increased by that amount.

Okay. I'm not sure that I got the answer, but -- so again, can you give some idea as to what kind of EBITDA margins we can bake in for next year?

For next year?

Can I take this question, please?

This year, you have roughly reported 11%, 12%. Next year, can we expect a similar number.

You can expect -- you can expect better numbers than this. Let me give you a small clip on what -- see, we had just -- '22, '23, we have just come out of COVID. In my opening remarks, I said -- in my opening remarks, I said, we were lucky to retain people, right? But we couldn't retain pre-COVID my employee strength was 260 employees pan-India. During the COVID period, the top and the middle management, we could hold on to people down the line -- the line the ground supervisors and all the ground force though we wanted to retain them some of them were not ready to take pay cuts and stuff like that.

Very understandable. Yes.

Okay. So we had to let go or we couldn't hold them back. That's the reality. That's the fact of the matter, okay? Now when we got out of that thing the actual year was '22, '23, right? So we were suddenly -- so what are the situations that have happened was that the business came back, but we did not have the necessary manpower to manage the business. So went in for a slightly expensive model, which is called a sub vending model.

Understood. Understood.

Where your operating expenses, operating expenses on a supplier side shoot up, but your internal expenses go down because you don't have that many -- but when you do a cost escalation, when you do a cost benefit analysis because that's what we've been doing pre-COVID. Pre-COVID, we have -- our success has been we are a direct company. In our asset-light model, we are not the sub vending type of a model. You got it. So I had to increase my cost. And honestly, the increased cost came of somebody who was working with me for, let's say, INR 40,000 when I had to bring him in after a years break or something I have to pay much higher than the normal, he should have continued with me with a 5%, 10% year-on-year increment. I had to bring him with a 30%, 40%, 50% increment.

I got it sir.

So that is the differential.

Yes, making sense.

Yes. So that is the differential. And if you see the trajectory, see, my request to all my -- all the stakeholders, all the participants here is see the trajectory, see the growth trajectory that we have from '23 -- '22, '23; '23,'24. I don't see anything in the pie. In fact, right now, it's a [indiscernible] period. We are -- we are sufficiently funded. We have a great team. We have great advisers. Clients' confidence is completely there with us. We have a 1 plus in an unorganized market, we are the first ones to be organized. So all those factors are a [ Gango ] factor for us to take it to the next level. But in our DNA in the company culture, we are a very conservative company in terms of our -- my and my team, my management team, [indiscernible] mantra is under commit, overperform, okay? [indiscernible], what would you want me to do, isn't it?

I also agree that sir. I am done with the question, sir. I really appreciate your initiatives, but you've said that there will be more frequent updates because my fellow participants are right. The biggest challenge is there is a huge gap between any sort of information. So if you can do like a quarterly, you don't need to have audited results, you don't have to make a formal P&L presented, but a rough idea that what is the progress. So -- because 6 months is a really long time without getting any understanding of how the business is progressing.

Agastya, we're working on that, and we'll be doing regular updates. And to answer that EBITDA question, we will be continuing that figure to what we have given. We'll be able to manage that growth.

Excellent, sir. The opportunity seems to be very good. Sir, all the best.

And thank you for the feedback, Agastya.

Next question is from Chirag Jain.

So congrats for the set of numbers. My first question was on the car side. What is the current utilization of each car in number of hours? And what type of a car we own? And what is the average cost of the car that we own or lease?

Okay. I will take that question, Shiva. Chirag step by step, the cars that we have are in the category of Sedan, SUV. Mainly in the SUV category, we have Ertiga's and in the high-end segment, we have the Innova Crysta's. In the mass transportation, we have AC and non-AC buses, right from tempo travelers which are 17 seaters right up to 35 seaters. So that's the fleet mix that we have. Am I clear, Chirag?

Yes, yes, that's very, very clear. Second, on the average cost of that we -- response to calculate. Number of each car being used. Can you give us...

Yes, correctly. Yes, yes. That is one of the efforts that we have. Presently our utilization is around 12 to 14, hours, 26 days a month.

20 to 14 hours.

12 to 14 hours per day, 26 days a month.

Okay, Fair enough.

Now we are -- our focus is to get it -- we are devising a strategy of asset utilization, higher asset utilization to the extent of maybe it's already on the drawing board, 15% of our fleet will probably run 24 by 7, 26 days a month.

Okay. So we will be requiring more manpower for that?

No, we are a asset-light company. No manpower is on our payroll.

So a single driver can drive only for 12 to 14 hours.

Sir, 50% will be -- it will be on case-to-case basis as the business grow. The idea is to increase the volume of the cars. Right now, it is 12 to 14 hours. So it may go to 16 to 20 hours usage. And there are increase of supervisors spend only.

Okay. So the same person will continue to drive the car?

Yes. No, no, no, no, Chirag, I think you're confusing the 2 things. One, I fully take -- I get your point. How much asset am I going to squeeze, right? Right now my asset utilization is 12 to 14 hours, you're perfectly right in a single driver model, okay? There is a certain amount of reluctance that happens on the owner-driver model, where a guy he is doesn't want to give -- he wants to have a car service for a longer period of time. [Foreign Language]

Yes.

So we are creating a set of -- the people who have been with us, we're creating a set of fleet, which will probably run for -- the robust type of a vehicle. Like we know the Ertiga, we know the Xylo -- the -- I mean has the Innova Crysta has the capacity to take that. It can take that fatigue factor. Yes. Since we are an asset light thing, we will encourage our driver partners to secure on 1 more driver in his car and compensate him accordingly.

Understood. Second question was on the lease cars that we have. So how many cars out of the total fleet are leased? And for how much duration have they been leased for?

No, right now, we don't have any leased cars or nothing. We are getting into a leased car. We are -- the next fleet will be leased fleet.

[Foreign Language]

[Foreign Language]

Understood. Also last question before I get back into the queue. So how do you plan to use the INR 30 crores of cash?

I think that is clear. that's mentioned in the RHP. And I think that cash flow is there.

Okay. So we are on track to use it for that only?

Absolutely. 100%.

Okay. Well, also on the balancing part like previous participant also mentioned about, the other assets break up I needed, so that is why -- if you have that handy, if you can share?

That my finance team can take over.

Yes. Can you repeat the question.

Balance sheet, there is a INR 12 crores of other assets on your balance sheet, am I right? Hello?

Yes. Yes. This is the unbilled revenue. The revenue for March 2024 has been recorded in the month of April 2024. That's the reason we have booked it to finalize the financial statement.

Next question is from [ Prathamesh Surve ].

A good set of numbers, sir. Congratulations.

Thank you, Prathamesh. We will be even better next year.

Yes. Yes, all the best for that, sir. [Foreign Language]

[Foreign Language]

Okay. [Foreign Language]?

EV story is a good story. EV is a good story. [Foreign Language]

Right. Going forward, sir [Foreign Language]

Major component mix fleet, mix [Foreign Language] B2B, B2C, event management, government businesses, intercity, intracity [Foreign Language]

Okay. Okay. [Foreign Language]

[Foreign Language]

[Foreign Language]

Thank you.

Yes. Yes. [Foreign Language]

Normal industry standards, [Foreign Language] Normal industries [Foreign Language]

Blended [Foreign Language]?

[Foreign Language] 3 to 5 years [Foreign Language] working capital [Foreign Language]

Okay. Okay. [Foreign Language]

[Foreign Language]

[Foreign Language]

Almost about 24%, 25%.

Okay. [Foreign Language]

[Foreign Language]

[Foreign Language] Right.

Right, okay. [Foreign Language]

Right. Right. [Foreign Language]

Headquarter Maharashtra based [Foreign Language]

Okay. [Foreign Language]?

[Foreign Language]

Okay. [Foreign Language]

[Foreign Language]

Okay. Superb, sir. Fantastic.

Okay.

Next question is from Keshav Harlalk.

Sir, right at the start your mentioning about inorganic growth opportunities. So can you have a -- can you tell us whether there is any opportunity in the pipeline or are you -- and how are you looking to fund that inorganic growth opportunities if you are having one? Are you looking at any presidential issue of...

Keshav, sir. Right now, we've not reached that level. As I said, our focus is the right fit. Because at the end of the day, I have to report to my shareholders, which I don't want to just be in a hurry to pick up everything left, right and center and face the consequences of a bad fit, which is unfortunately happened in almost all industries. Correct me if I'm -- Keshav sab, I'm sure -- correct me if I'm wrong, Keshav sab, right?

Got it. Got it.

Yes. So I would like to -- because we have independently run company for the last 21 years. So as I said, our complete focus, [Foreign Language]

Got it.

[Foreign Language] and then we'll come back. Is that okay, Keshav, sir?

Yes. Yes, I got that. Now can you -- this may be a slightly longer answer, but can you just -- because we've not -- even got an investor presentation, can you talk about your diesel vehicles, what you are having unit economics. And when you intend to replace those diesel vehicles, which you're having? And is there a right now in the EV space, you are only having a Tata Tigor, which is costing INR 12 lakhs. And that Tata Tigor hardly gives us 150 to 175 kilometers on 1 charge. So if we get a electric vehicle, which is a better value for money proposition. So will we say 2 years going forward, will we be looking to replace our diesel fleet with EV fleet if we get that. Can you give us some sense of what are your unit economics are? When do you replace cars? What do you get when you replace -- because obviously, the car would have a value after 5 years also. So would you be replacing it? Or do you make it run for another 2 years and then you replace it. And are you having a thought process of replacing your diesel vehicle with EV vehicle?

[Foreign Language] With the permission -- see, I think we have -- you are rightly, you perfectly pointed out saying that it would be a longer answer. Now our coordinator Kirin Advisors, we have timed it out for 1 hour. I would love to give you, I like to talk, I would love to chat with you for 5 hours. But the point is, I think other participants are there, I would replace my finance team to send it across to you on a personal e-mail ID or in the public platform...

Can you have it on as part of the investor presentation because it has not yet come out. So can you talk about what the thought process is, anything [indiscernible] all of us...

R. C. and Shiva, sir , can you take this over, please?

Yes, yes. Mr. Keshav, we are going to provide the details in our detailed presentation by today -- day end.

Keshav, sir [Foreign Language]

Got it. Got it. Okay.

[Operator Instructions] Next question is from Aman Goklani.

Firstly, congratulations on the wonderful numbers. I had a question regarding the utilization that you spoke about that we'll try and utilize our existing feed better, are we in touch with any of these staff aggregator companies like Uber, Ola, wherein -- we can look to give out our cars for them to drive during the offpeak hours for your business? Is that something on the horizon?

Aman, we have been approached by both of them, right? And the last 7, 8 months, we've had a couple of meetings. Our core focus is going to be dedicated service delivery. As you rightly said, yes, that is a part of our strategy. And having said that, you're bang on, that will be a part of our offsprings. We will be -- either we will create our own or will partner with some of the aggregators.

Right. And when you say you will do it yourself, how would that work? Would it -- I mean would you get into the same service as...?

There was a particular B2C market that we were not tapping within our existing customers, which is on-call and stuff like that, okay? So that is the market because we were too focused on continuous service delivery. The on-call market is a sporadic, but a high-margin kind of thing. So now we have -- now that our things are in place. We are -- as I rightly -- as I mentioned to you earlier, it is -- we are evaluating all these models. We have had n number of -- in fact, we have the agreement copies in place from the aggregators in terms of these utilizations. It's the only thing is we need to go ahead and take a call on that.

Right. So what stops us from taking the call on this? And do you have a timeframe in mind? And would the margins in a business like this be similar to what we operate at currently?

On the ground reality that the margins offered by the aggregators are to less.

Right.

So having the vehicle squeezed, vis-a-vis the margin is honestly a call that I am reluctant to take. I'm trying to build an ecosystem where my vehicle does get utilized at a better number -- better numbers, but not at the cost of low margins.

Now we'll take one last question. Next question is from [indiscernible]

Congratulations on great set of numbers. Sir, just wanted to know what is our monthly billing to our customers, if you can share?

My financial team will takeover, please.

Sir, monthly billing is around INR 12 crores. Only looking at positive.

Okay. And that the growth which you've guided, is it from the existing customers or acquisition of new customers, I have missed the earlier call.

Sorry, I didn't get you. Vinay, sir, can you just repeat.

Yes. The growth which you are guiding, is it from the existing set of customers or new geographies or new customers?

No, both. Both.

And sir, are you looking for any price agreement or what is the price agreement, which you have with your clients? And how often you revise them?

Sir, Price agreement -- see, post-COVID, there was massive -- there was a price, any events like this, which keeping you in-tune with the market, right? The price agreements are built in into the agreements. If there is a vehicle change, if we -- for example, now there's a huge price differential from a normal fuel-based vehicle to a EV vehicles. So that's all baked into the agreements.

Okay. And sir, next thing is how many clients are we looking to add? And what quantum of revenue are we are we expecting? Are we in line?

See that the client pipeline, the client -- as I said...

The numbers. Not the name of client.

Numbers. Numbers would be -- I think 8 to 10.

Okay. And sir, last question. Any idea on how can you upsell or cross-sell your products? Because I'm sure there would be a lot of opportunities when the cabs are ideal, how you can upsell or cross-sell?

We have appointed advisers to guide us into that, and we are exploring different opportunities where we can look at that kind of a thing. But yes, honestly, I mean, we have not been -- that's not been a focus area. It is more in terms of vehicle utilization and other things. Cross-selling is something that we have not built in. Cross-selling within the gamut of people mobility, yes, that is 100%.

Okay. And sir last question, given the scale which you are guiding, let's say, after 1, 2 or 3 years when the driver would be so large. So as we are hiring drivers on our own book. So would -- how you manage these large...

No, no. [ Jinesh ], please get that. We are an asset-light company, no drivers are on my payroll.

Thank you, everyone, for joining the conference call. If you have any queries, you can write us at [email protected]. Once again, thank you, everyone, for joining the conference call.

I just want to make a closing note. On behalf of Shree OSFM E-Mobility, I thank every one of you for taking our time and asking pertinent questions. We may have missed some questions, but we are always evitable to answer all your queries in detail, you can reach out to us on an e-mail. And our presentations will be by day end will be uploaded on the site.

Yes. Thank you, Shiva, sir. And thank you for all the participants. Thank you, Kirin Advisors for organizing this. And my commitment to the participants is you want the proof of pudding is in eating it. Let's meet earlier than that 6 months, we are going to put it in place a guidance system maybe are on a monthly basis. And maybe 6 months down the line, I think not maybe 6 months down the line, we will be -- whatever that we've talked and if you all remember, and -- you would have probably crossed that also. So thanks all. Thank you all for joining on a Wednesday afternoon. Thank you.

Thank you, everyone. Thank you. Good day.

Good day, sir.

Thank you, everyone.