Did anyone go through the bizarre concall. I glimpsed through it and each answer looks like a confused mess. Don’t have the energy to parse through it in details but if anyone has done the analysis, please share:
Why are they not including ESOP costs in their PAT margin, if it’s part of the remunerations then you must consider it?
Management said the VI commentary that they have 6 month runway is not based on ground reality and that it’s strategic on part of VI to get waiver from govt? I sincerely doubt that Suyog has more insight then govt auditors
Company talks about installing so many new towers (4.5k) in FY25 but they installed just 100-200 towers in Q4, after reaching 1800 tenancies in Q3, why?
Also, how come company is getting money from ESOPs? Isn’t this expense they have to pay the employees (might be a very obvious explanation but I seem to be missing something)
For FY26, we are raising INR100 crores from bank debt right now.
Another INR150 crores raised from internal accrual. So it becomes
INR250 crores. Another INR50 crores will come from promoter for
their past warrants and ESOP. So we are able to reach around INR300
crores easily. And INR100 crores shortage will again go for bank debt
where we are working with the bankers
This is just beyond my head:
Sir, it is like this. You said INR90 crores. ESOP of INR30 crores from
Suchitra Lature is left, INR120 crores. Now the arrangement of ESOP
of INR27 crores is INR30 crores. INR30 crore and INR 30 crore,
INR60 crore and INR90 crore, so INR150 crores is done.
Yeah, you’re right, their calls are quite puzzling.
Just on the last call:-
One moment Avg rev./site/month was ₹ 35,000. Few minutes later when somebody else asks it drops to ₹29,000.
Similarly, they at one point they said they will add 7,000 tenancies in FY26; by end of call it became 5,000
Everyone including the MD just throws random numbers when asked source of funds for next year’s 400 crore capex.
Can’t even clearly state what is the FMV calculated for ESOPs. Even their CFO gets confused.
One could have given them the benefit of doubt if they even half executed what they said. Claim to add 1000+ tenancies in Q3FY25. But no increase in revenue in Q4FY25. I personally think they either just exaggerate too much or that as these sites are mostly for BSNL/VI - they are not getting operational due to the issues these two respective companies are facing. Really doubt their claim bigtime that they can add 5000 sites in FY26.
Still a cash generating business, but doubt market will re-rate it in a hurry.
PS - Wrt your #4 on money coming in from ESOPs, afaik it might be because the employees have to pay the exercise price (in this case ₹ 300) to the company. The rest (difference between excercise price & FMV is borne in company’s P&L as a non-cash expense).
