Management is also guiding for the same, first year EV chargers contribution would be around 100Cr and it will be scaled to 500Cr in the coming 3-4 years.
selling 100 charges/month may not be a big deal, they are in discussion with some overseas clients as well where EV charging infrastructure is already in the developed stage.
In my opinion EV charges and smart energy meters together can contribute good amount to top line in the coming 2-3 years in addition to the incremental revenue from the existing products. Over all 20-25% growth in 2-3 years could be not easily achievable.
In case of smart meters, the government tenders are given to AMISPs which are responsible for procuring installing and maintaining the meter.
But not all AMISPs have their own smart meter. Example Genus produces their meters inhouse and also act as an AMISP. On the other hand, HPL only manufactures and caters to various AMISPs.
At the moment there are I think 10 cr smart meters tenders are already awarded to AMISPs and 5 cr yet to be awarded. Out of these 10 cr , the orders from AMISPs to smart meter manufacturers are still pending, how much we will need to check.
I think it is unlikely salzer will get any orders from the current 10 cr pie.but may get some from the next 5 cr. RDSS scheme I think has 30 cr total target. The reason for this is that AMISPs also test the product and choose the one that caters to their needs. So salzer must have some confidence that their product will be accepted.
Unfortunately, neither genus or hpl provide the cost they are charging for smart meters or margins, I have only read the last 2-3 concalls at most so not sure if this was provided before or maybe I missed that. HPL did state in the recent concall that they donât provide the number due to competitive reasons. We would probably need to do some approximations to get potential revenue and margins.
Overall, HPL and Genus have not more than 2 cr meters / year capacities (with expansions) and to get to 15 cr installations within 3-4 years, there is enough scope for Salzer to not underprice their product. Purely my gut feeling.
I have gone through order receipt filings, on an average 1 smart meter price is coming aroun 8000/- this may include the installation part also.
In earlier orders it was around 10000/-
On conservative basis if I take 5000/- as per meter price then salzers 4 milion capacity can generate a turn over of 2000 CrâŚis it so or am I missing some thing
The AMISP orders include installation and survey etc work as well as operation and maintenance over next 7 years (i think). Genus mentioned that out of this order value 45% comes to them immediately which might be the cost attributable to smart meters but I canât be sure.
HPL is a pure play smart meter manufacturer. If we can get a number from there, then that might give better idea.
Though I have position in Salzer, I feel company is diworsifying for its size.
Unless I overlooked, there was no prior hint by the management on this new product line, how they are funding it, and how can it start commencement of first batch of smart meters just in a few months (Q1 FY25). Is it really that easy? If it is, why would established players not increase their capacity?
I wish them good luck but one needs to be careful beyond a point, especially in this heated market.
Yes i was in last con call but there is no discussion about this product, before that i have gone through Q1 & Q2 call transcripts but missed this point.
Now i have found this in Q1 call transcripts, management said we are looking into that opportunity. And maybe a couple of quarters down the line, we will have something, some update on this, if we get into that business
They were working on this smart meter parts in FY17 itself, found the details in their Q1FY17 presentation in new product development section.
This is 3000 Cr opportunity, we need to see the timelines by when they can get 10M on stream.
This smart meter theme is very well explained in the below video.
Now its confirmed that single phase smart meter costs 3000/- and revenue potential of 4M smart meters would be 1200 Cr, which is ~ FY24 revenues.
10 Cr meters order was already placed, approx 15cr order is yet to place. Most of the orders will be released in 6-8 month time.
Govt target is convert all meters to smart meters by FY25 end (Dead line seems to be impossible, it would be completed by FY26/27)
Supply, installation and Maintenance for 8-10 years will cost around 10000/- per smart meter. Life of smart meter is 10 years
Question 1) if salzer can get 1cr capacity on stream then this could be sustainable for 3-4 years based on capacities from the competitors after that time capacities would be with no orders and waiting for replacement orders of smart meters.
whether they can able to get orders to utilize the capacity of 1 cr smart meters fully or not, there are lot of capacities coming from big corporate and small players also.
If they can get order directly from DISCOMâs (at least few) then it would be margin lucrative rather than supplying to AMISPs with minimal margin.
Salzer is backward integrated out of Coimbatore.
They have been manufacturing crucial electrical components for Smart Meters (Coimbatore). And in Feb they announced that it is establishing a Smart Meter manufacturing Business in Coimbatore.
Annual Production Capacity :
4 million smart energy meters
(Which will increase to 10 million in Phase 2)
TAM
India : 250 million units initially potential to increase to 350 million during next 3Y
Scheme : Revamped Distribution Sector Scheme (RDSS) by GOI
