Ladies and gentlemen, good day, and welcome to Olectra Greentech Limited Q2 FY 2025 investor conference call, hosted by Axis Capital Limited. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amar Kant Gaur from Axis Capital Limited. Thank you, and over to you, sir. Thank you, Neha. Good evening, everyone. On behalf of Axis Capital, I welcome you to the Q2 FY25 post-results conference call of Olectra Greentech Limited. From the management team, we have with us Mr. B. Sharat Chandra, CFO, Mr. P. Hanuman Prasad, Company Secretary and Compliance Officer, along with teammates from Finance and Strategy. I will now hand over the call to Mr. Sharat Chandra for his opening remarks, post which we can have the Q&A. Over to you, Mr. Sharat Chandra. Thank you, Amar. A warm welcome to all of you who have joined us today for the Olectra Greentech Limited earnings call for the quarter two, 2024, 2025. We are taking as read the presentation, which we put on our website, along with the safe harbor statement thereon. Before I talk on the key financial highlights for the second quarter, I would like to state that overall results of quarter two have set the trend for the future second half of the year, and we are reasonably confident of delivering the guidance, especially with regard to the targeted volumes for the FY 2025. We have registered our highest ever quarterly revenue, EBITDA, and profit after tax. Till date, we have delivered 2,217 electric vehicles. I would like to present the key highlights of your company as of thirtieth September at a glance. Olectra buses have successfully covered more than 28 crore kilometers across the length and breadth of the country. The strong demand continues with the company's net order book of electric buses stands at 10,503 numbers after delivering 315 buses in quarter two, financial year twenty-five. Our focus continues on increasing our manufacturing capacity and enhancing our technology capabilities. The construction works of the new state-of-the-art plant at Seetharampur is in full swing, and your company has transitioned to the new facility, as informed earlier in quarter one. Now, I will begin with providing the key highlights. Coming to the consolidated financial year for Q2 FY25, on our revenue, Olectra has clocked its highest ever quarterly revenue at INR 523.67 crores, marking a growth of 70% over INR 307.16 crores from Q2 of last year. Our EBITDA was at INR 85.69 crores. Once again, our highest ever quarterly earnings, up by 90% from INR 45.06 crores in Q2 last year. PAT at INR 47.65 crores, up by 136% from INR 18.58 crores in Q2 of last year. On a consolidated basis, Olectra has clocked highest ever revenue, revenue at INR 514 point... On a standalone basis, sorry, Olectra has clocked highest ever revenue at INR 514.07 crores, versus INR 297.87 crores of previous year, up by 73%. The company's EBITDA for quarter two reached an impressive INR 83.24 crores, once again, our highest ever quarterly earnings, up by 88% from INR 44.19 crores in Q2 last year. The PAT stood at INR 48.2 crores, up by 130% from INR 20.99 crores in quarter two last year. So thank you, and over to the Axis team for the Q&A. Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Gaurang from Utility Unify. Please go ahead. Am I audible? Yes, please. Yeah, good evening. Congratulations on fantastic set of numbers. It is more than the expectations that the numbers are. So, my query is with related to the operational revenue which Olectra gets as a virtue of partly owning the Evey operational firm, Evey Trans. So, I am specifically interested in BEST and MSRTC, as that's where our major chunk of numbers is. So, suppose when we deliver five one five zero buses for MSRTC and five thousand one hundred buses for BEST, that will happen probably next year. Put together, that number is roughly around ten thousand two hundred and fifty electric buses. My question is, Evey Trans would be operating those buses at an average of 300 kilometers per day, that is, 200 kilometers for BEST and, 400 kilometers for MSRTC, at, say, an average of INR 70 per kilometer. So, am I right in projecting that the yearly revenue of Evey Trans would be around, INR 7,856 crores for that financial year? And again, if so, I want to know what% of these 7,856 crores will be part of Olectra's profit and loss sheet, and what would be the net margins from this operation that the company has projected? Yeah. Yeah, that's my question. Yeah, Gaurang, see, basically with regard to the numbers what you have quoted for EvTrans, I think, based on 10,250 numbers at 70 rupees, the turnover will be approximately whatever you have stated. So as far as we are concerned, so let, just to clarify once again, so we manufacture and supply and sell the buses to EvTrans. So, our revenue is recognized the moment we sell the bus to them. Post delivery of the buses, we take care of the maintenance for the entire project duration, which will be about 12 years. So, during the operations, based on the number of kilometers, whatever Evey Trans buses of 10,250 buses are operating, we will be generating annual maintenance service revenue, which could be approximately, say, about INR 5.5 per kilometer on an average. Okay. Okay, got it. I think, I hope, I clarified your question. The revenue realized for Olectra would be into per kilometer into INR 5. Right. And what would be the net margins out of this, that you projected? So net margins on this will be about around 15%. Okay. Okay, thank you. And my second question is related with Chennai bus tender, which recently got concluded, where Switch won those won the tender for 500 electric buses. My question is whether we participated, because Switch has quoted some 70 or 80 rupees per kilometer for the non-AC and AC buses respectively. So, did we participate? And if we did, were we like really high in the bid that we couldn't win this tender, or what is the reason? So, one second, just I'll ask my colleague to just clarify this question. Good evening. Evey Trans Private Limited has participated this tender since it is a GCC tender, and we have provided from Olectra side our bus quotes and AMC costs to Evey Trans, and they have taken a call, and as for their calculation, they have bid this tender. Yeah, but the bids were around seventy-four or, for non-AC and AC, I think over AC, as per the article, in one of the newspapers that I read. So, is it that we have lost the competitive touch, or is it because the delivery schedules were very stringent that we were not considered? I think this is as per the Evey Trans calculations. We can't comment on that. Okay. Gaurang, just to clarify- Mm-hmm. Trans, at the time of bidding, uses manufacturing authorization form of Olectra, and based on the project metrics with regard to number of kilometers, the number of buses, the project duration, and all the scheduled trips, so we provide the cost, tentative cost, and based on that, they bid. Got it. Got it. Understood. So probably this time, there's a lot of technical specifications that were added, and probably we couldn't probably outbid them, is what I'm understanding. Okay, yeah, thank you. Those two questions. Thank you. Thank you for the clarification. All the best for the ahead, too. Got it. Thank you. Thank you. The next question is from the line of Yash from JM Financial Limited. Please go ahead. Yeah, hi, good evening. My first question is on receivables. So, what sort of receivable days should we work with? And, you know, how much time will it take to liquidate these receivables? I assume it's from Evey Trans only, most of it. So that's the first question that I have. Yeah. See, as far as receivables is concerned, if you see the past three quarters or four quarters, the receivable is coming down. So currently it's about five and a half months, and the overall working capital cycle is less than three months. So, we expect maybe in couple of quarters improvement in the working capital cycle. But the receivable number will stay elevated, the receivable number? See, as we increase our sales, the receivable numbers obviously will go up. So, but in terms of overall number of days, it will come down. Okay. And what is the risk that you carry, I mean, in case of this receivable in the worst case? Is there any risk? Or We don't foresee any risk. And the other good thing is all the contracts, all new contracts, the customer, Evey Trans, has secured sanctions in terms of term loan facilities. And we hope accordingly the working capital cycle to come down. Okay. Just to delve a little on this, what is the number of guarantees that Olectra has given to Evey Trans, if any, corporate guarantees against the loans? No, we have not given any corporate guarantees. Okay, and my second question is, what is the sort of volumes we are looking at this for the second half? And is the new facility which you mentioned, is it now completely running, or what is the status of it, if you could provide some? Yeah, as communicated in the last earnings call, we have met the Q2 target for Q2, and Q1 and Q2, it's in line with our guidance, and we are aligned and on track with our target of executing about 1,500 numbers in this financial year. So that means about 1,000 in each Q2 that you're targeting? Yeah, that is what is the targeted volume. Yes. Okay. And the new facility is up and running, or what is the status of it? Yeah, we have it is up and running, as sort of partially we have started the facility and we have shifted from the old facility. And currently we have capacity to meet this target. In the second quarter, what is the number from the new facility, if you could give that? See, entire numbers are from the new facility. We have delivered about three hundred and fifteen numbers. Okay. And the last question is: What is the bid pipeline like for the next two to three quarters? Any material bid pipeline that you have for the new orders? So, you're talking about new tenders? Yeah, new tenders. New tenders. Yeah. One minute. Currently, we are L1 for one of the tenders, and also, we are also expecting the tenders from the CESL tenders are there in pipeline, and there is a tender from NW Karnataka, and we are also expecting tenders from some other new states also. So what is the quantity of the L1 that you mentioned? You can say that the tenders will be about 2,000 to 3,000 buses. Which are your L1 in? L1, we are L1 for about 327 buses. Okay. Thank you. Good luck. Thank you. Thank you. Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead. Yeah. Am I audible? Yeah. Yeah. Yeah. Thank you very much, sir, for this opportunity, and many congratulations for good set of numbers. So I just wanted to understand how would we see the ramp-up in our volumes? I mean, this quarter, I think we delivered about 315 buses. Is that right? Yes, correct. Yeah. So, how do we see ramp-up going into third quarter and fourth quarter, and what sort of volume we are targeting for FY 2026 and 2027? Yeah. Yeah, as indicated earlier, Q3 and Q4 will be better than H1. So, our target for this year is 1,500 numbers. And next year, we are targeting more than 2,500 numbers. Next- The next financial year, 25... I'm sorry, you are talking about 26, 27. 26, 27 definitely will be 5,000 plus numbers. 27 is 5,000+, and 26 is 2,500 buses, right? We are targeting anywhere between 2,500 to 5,000 numbers. Okay. Because, I mean, our current order book is about close to about 10,000 buses, right? Correct. That we need to deliver over one and a half to two years. Correct. So ideally, isn't that your, I mean, delivery in FY 2026 would have to be much higher than what we are indicating? That's what we are actually planning to complete this 10,500 numbers in the next two financial years. Next two, FY 2026 and 2027, that's what you are saying? Yes. Correct. Okay, understood. And what are the margins one should look at? I mean, we saw some improvement in your margins, right? I mean, with increase in volume, you are getting some operating leverage advantage as well. So your margins currently is at 15.6%, EBITDA margin, in the second quarter. So how should one look at the margin traction going forward? See, my margins quarter and quarter will depend on the product mix. As we see larger volumes, when we talk about 10,000 numbers, we expect the margins to stabilize around anywhere between 10%-12%, because we have to be in line with the competition, in line with the volumes. Because the fixed cost will also go up, and whatever additional contributions we earn from the revenue and the fixed cost absorption will be there. On a near-term future, the margins could be like this, what we are earning now, but over a long term, the margins would come down in percentage terms, but in absolute numbers, as you're aware, it will be very high. Okay. So what you're trying to say, in the near term, this 15.5% margin can be sustainable, but as we go towards executing this entire product mix of 10,000 buses, your margins would, I mean, range between 10% to 12%? Yeah. It all depends on. We see we are working towards the localization. We have been working on reduction of our raw material costs, so that is where we are seeing better margins in this quarter. So, it all depends on various variables, which are going to be there. So we would give the guidance around 12%. 12%? Okay, on an average for this 10,000 buses as a whole, right? Correct. Okay. Okay. And generally, what is the realization we get per bus? If you look at the product mix, on an average, it's about INR 1.5 crores. Mm-hmm. Okay. Okay, okay, understood. And how do we see the debt scenario? I mean, do we have to get more debt for executing? Because it's working capital intensive, right? So as you increase the volume, you would need some capital for working capital. So how are we placed there? ... Yeah, as of now, we have sufficient limits to take care of the next six months to one year. And, what we are seeing is basically our customer, EVTrans, their all the new projects, the financial sanctions or financial closures are already in place in various stages of documentation. So, what we anticipated, basically, our working capital requirements will not increase as all the financial sanctions and all the financial closures are completed for these two major contracts. Okay. So, do you expect increase in debt going forward? So as of now, basically, our debt will increase with regard to the term loan, where we have availed, we are for the new facility. On the utilization of this facility, we have actually a sanction of INR 500 crores. By utilizing this facility, our term debt will increase, which over a period of four to five years, we expect the repayment should happen. Okay, so term debt is INR 500 crore, right? Am I right? Yeah. Okay, fine. So, that will increase effective when? It's already in place. We have started availing in this quarter. Started availing in this quarter. Okay. Understood. Fair enough. I think that, that would be it from my side. All the very best to you. Thank you so much. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Sudhakar Rao, an individual investor. Please go ahead. Good evening, gentlemen. Can you hear me? Hi. Very good. Yes, we can hear you. I'm Sudhakar from Hyderabad. Hearty congratulations for the excellent results for this quarter. I have a few questions. The gross margins were very good at 15.65%. Was it due to improved operational efficiency and localization of components, or due to the composition of the type of buses delivered and restricted only to this quarter? Or whether we can expect the same margins in the future also? Okay. Thank you, Mr. Sudhakar. Basically, it's a mix of both. So, in terms of, we have been working towards localization and our cost efficiencies we are bringing in. So, that is one reason, and also the product mix. It's a combination of both, which has given us this margins, and we expect the overall, if you look at the gross margins, so we expect on a company as a whole between 25% to 28%. 25? 25% to 28%, the gross margins. When you talk about gross margins, I'm talking about the material, what is the sales? Okay, okay. So, have you finally dropped the plan to raise equity through QIP and other things? You are going ahead with the debt only for new projects? As of now, as of now, we are actually funding the project through internal accruals and debt. So the management is yet to decide on any kind of fundraising activity. So at an appropriate time, whenever there are internal clearances and the management is going ahead for a fundraise, we will definitely notify the shareholders. So still there is a possibility, even though we are almost halfway through the new project implementation? Not now, Mr. Sudhakar. Basically, as we are growing, in the future- Okay. We cannot say okay for the present project and the new greenfield one. I think you are already tied up for the debt, so you must be mostly going ahead with that. So regarding the deliveries and your capacity, present capacity, and when the full capacity of 5,000 buses will come, there's a lot of confusion. In each con call, there's a different story I get. Last time you said that you'll be doing 1,500 buses this in this financial year. And but so far the deliveries are not so promising. And will you be able to reach 1,500 in this financial year? Mr. Sudhakar, actually, we have given a guidance of about three hundred numbers in this quarter. Against that, we have done about three fifteen. Overall, H1, we gave a target, and we are in line with the guidance, whatever we have given for H1. We have indicated also H2 will be the biggest half year, and we are confident of meeting the guidance of thousand five hundred numbers at this juncture. Okay. Earlier on, you said that the total capacity of five thousand will be ready in this financial year by March. That was the last time you said that. Yeah, yeah. Just now, just now I heard, you say that, the next year capacity will be only two thousand five hundred. How come? They don't match at all? No, no, I have not said the capacity. I've said the target. Capacity we are building to 400 buses per month by the end of this financial year. What I mentioned is the target for this year is about 1,500 numbers. Next year and the next two years, we'll complete this, the order book. 10,500 numbers, we are planning to complete within the next two financial years. So, from April 2020 onwards, there can be deliveries of 400 buses per month, April 2025? That is our target. Okay. That's one more thing, this one, other expenses have doubled to INR 12 crores from INR 6 crores. Any extraordinary item or any? In line with the growth in operations, there is no extraordinary items, extraordinary expenses. Right, sir. One more small request, the financial figures, in the quarter results, they are given in lakhs. Considering the growing size of the business, if the figures are given crores, it will be easier to read and understand. Please consider this if there's no law prohibiting. Yeah, we will just examine, and then we will discuss with our auditors and then do the needful. Uh-huh. Okay, that's all from me. Thank you. Thank you. Thank you, Mr. Siva. Thank you. The next question is from the line of Sanjay, from SK Securities. Please go ahead. Hello, am I audible? Yeah. Hi, good evening, and congratulations on good set of numbers. I'm very happy that this time, whatever number we're committed, and really you got the number, so congratulations to your whole team. My question is, yeah, you just mentioned about in H2, you are targeting around 1,000 deliveries of 1,000 buses, so any in Q3, what number you are targeting? The overall, Q3 will be better than Q2. That much, I can say as of now. Okay. So generally this one portal generally gives a 90% accuracy of numbers, because the numbers are not there, and October it shows number in about single digits. So any challenge, any delay in delivery? Because there is not much delivery happen in October month. I think we have clarified in the past about the Vahan portal. So as far as Olectra is concerned, we manufacture and deliver our buses to our customers, and the customer completes the other process of registering and getting the approval from the RTO. And there will be a timeline between delivery and the registration. So that is one aspect. Second is, till recently, some of the states are not included in the Vahan portal, so there could be differences because of these reasons. Sure, sure. I can understand. But there is no challenge in the production and delivery so far in October. It is going smoothly, right, in the new facility? Yeah, it's going on smoothly in the new facility. Yes. All, all right. Great, and, wishing you all the best. Thank you. Thank you, Mr. Sanjay. Thank you. The next question is from the line of Ritwik Ram, an individual investor. Please go ahead. Sir, it is that the Q2 results are indeed amazing, and I'm very happy to know that Q3 will be much better than Q2. So, congratulations on the performance of Olectra Greentech. Hello, sir? Thank you, Mr. Ritwik. Yeah, thank you, Mr. Ritwik. Yeah. One, I have a question, sir. My first question is regarding the insulator business. In future, do you have any plans of demerging the insulator business into a separate entity? Because in the world of mergers and acquisitions, I see companies demerging their original business and focusing on the new business. For example, in case of Unilever, they are demerging their ice cream business into a separate entity. So, any plans of demerging the insulator into a separate entity? Mr. Ritwik, as of now, there are no intentions of demerging insulator into a separate entity. Okay. Because the insulator business is growing at a snail pace compared to the bus business. Bus business is growing very fast. So that is why I asked that question. And my second question is, regarding the gratuity funding. I've seen your annual report, where your gratuity liability has shot up from two crore to roughly around three crores. Your liability is growing. So, any plans of creating a trust and funding the liability to the trust? As you know that there are tax benefits for funding the liability. Yeah. As of now, we are actually providing based on the actual valuation, so as we grow, we may have to deliver and deliberate this internally. As of now, we have no intentions of creating a separate trust. Yes, I understand, sir, but you can do a part funding of the trust, and you can fully fund the liability. Yeah, thank you, Mr. Ritwik. We will deliberate internally. Maybe in 2 years, it would be a good idea to start a gratuity funding. Noted, Mr. Ritwik. Yeah. Okay, sir. Thank you very much, sir. I look forward for a great performance of Olectra. I've been invested since September 2017. In 2020, it has the time is magical for Olectra. Oh, thank you. I hope it shoots up like a Tesla. Thank you. Thank you. We definitely, with the support of shareholders, we hope that to reach those milestones. Thank you very much, sir. I have no other questions. Thank you so much. Thank you. The next question is from the line of Umar Shankar Mukerji, an individual investor. Please go ahead. Good evening, everyone. So congrats, sir, for the great results. And I have a question, two questions, small. One is, do we have a, apart from BYD, are you planning for any vendor for our battery technology, from India? ...And secondly, are you targeting any small, you know, player, private player for bus, you know, contract, like, apart from the transport, state transport, any private, are you targeting, small customer and getting orders? That's it. Thank you. Yeah, and so Mohinder, thanks for the query. We basically have a very long-term relationship with BYD. So, and currently, we are sourcing the for all the STU related, we are from BYD, and they are also, as I think they have indicated in the past, we have a strong R&D team, and we have been working on an alternative platform, and we have delivered in the past on the working on alternative platform. So, so there is no, no such restriction as such, per se. And with regard to private players, we have in the past, last year, we have sold about 19 buses to a private player known as Freshbus. We continue to engage with private parties. This market is slowly picking up. The traction is yet to happen, but there are a lot of opportunities. Definitely, the opportunities will be much higher than the STU markets, maybe in two, three years' time. So we are working with various private customers, and we hope to finalize the contracts in the near future. Thank you, sir. Thank you. Sir, the follow-up question would be like, the battery, BYD. I know you have a contract till 2030, and but seeing the geopolitical issues across the globe, and China especially have a relation with India. So is it possible to have a alternative Indian partner, Indian manufacturer of getting suppliers for battery to be on the safer side? Is that what you are saying? Yeah, definitely, basically, in the recent past, the Government of India has sanctioned PLI scheme, and a few Indian companies have started in the manufacturing batteries. So it will take another two or three years' time. Definitely, the company will explore based on technology and the cost and economics. So, this, definitely this will help in the long term. Oh, thank you, sir. Thanks, sir. For e-Tipper, any update on e-Tipper? Any new orders, e-Tipper and or hydrogen, you know, which Reliance, we got some news, tie-up. Do you have any update on this? e-Tipper, we have delivered till date about 51 numbers. We have been conducting lot of demos and trials across various project sites. The traction is yet to happen. We expect the traction to come in the next six months to one year. As far as hydrogen, the question on hydrogen is concerned, these technologies are very necessary. We have decided to discontinue and continue the current economic viability. As we have very huge order book, we are now focusing on completing the deliveries of existing buses. Thank you, sir. Thank you very much. All the best, sir. Thank you. Thank you. The next question is from the line of Nanda Padma Arjun, an individual investor. Please go ahead. Thank you. Congratulations on a great set of numbers. Q2 numbers are really, really good. I have two questions. The first one is, in Q1 you updated that we sold five buses to Microsoft. Did we sell anything in Q2? If yes or no, are there any further pending orders from the same entity? Second question is on margins. I'm assuming that the rate that we fix with Evey, Evey is fixed, per bus for each of the contract pre-signed, and over time, the industry believes that the battery rates will come down, which would mean that the overall cost should come down significantly, which implies that the margin should actually expand as we grow with time. Is there anything fundamentally wrong in my assumptions? Yeah. Basically, you are right in saying that the battery costs are expected to come down. We also have the same expectations. As far as the margin percentage is concerned, what we give a guidance is basically it could stabilize around 12%, based on competition and volumes. And as far as the way we operate, I think you must be aware, on cost-plus model. So if the cost comes down the sales price also will come down accordingly. If the cost goes up, the sales price will go up, and these are all based on mutual discussions and agreement. So when we are talking about ten thousand five hundred numbers, there will be a mutual agreement between both the companies, and accordingly the price is fixed at cost-plus. Okay, and the other question on Microsoft deliveries? Microsoft deliveries, they completed whatever order we had in hand. We are still in the discussions with various other parties, private customers. Maybe we will soon finalize this based on, we are in advanced stage of discussions. Okay. Thank you very much, and all the very best. Thank you. Thank you. The next question is from the line of Anil Singh, an individual investor. Please go ahead. Good evening, Mr. Sharat. Good evening, Mr. Anil. You mentioned that by March, twenty twenty-five, we'll have a capacity of 5,000 buses per year. Yes. Is it correct? Correct. Yeah, yeah. Yes. You are giving a projection of delivery only 2,500 buses for 2026. ... So it's almost like 50% of the- I clarified, I clarified again, it will be 2,500 to 5,000 numbers, anywhere between that range, and we expect to complete the existing order book in 2025, 2026, and 2025 to 2026, 2027. So, my question is that you are saying the capacity of 5,000 buses will be ready by March 2025. Then why can't we say with full confidence that we'll be delivering 5,000 buses or 80% of the capacity, that is 4,000 buses, in the next financial year? It's a huge gap; I mean to say that. Even if you want to be conservative, 2,500 buses next financial year is a very 50% of the capacity which you are building up by March 2025 itself. So just wanted only clarification whether, Yeah, yeah. See, on a conservative note, 2,500 number is what I've indicated, but our target is to reach anywhere between 4,000-5,000 numbers. Yeah, that gives us a good confidence, and we want that the positive side of the company should be spoken very, you know, openly, so that we can get rid of these kind of confusion. Second thing is, like, you are seeing that the other segment of e-truck business already taken off, and there are many competitors who are getting the orders from different players. Are we also gearing up for that, or we are still just focusing only for delivering these e-buses and just happy with that? No, no, we continue to work on the E-bus. We have been doing a lot of demos and trials across various project sites. So, currently our teams are working on that, and with priority and focus on delivering the existing order books and buses, and e-Tippers, and definitely is there in our portfolio, and we expect orders to come in because the traction is yet to happen in this business. Okay. Now, even in e-Truck business also is getting a good traction. You know, Government of India itself is focusing a lot on that in next two financial years. Are we focusing for that? Yes, definitely. So, is there any, like, what is the capacity we'll have, like, in terms of buses and trucks? Can we say that by March twenty-six we'll have ten thousand buses capacity? We are targeting. Okay, and do you think that the internal accruals will be sufficient enough to build a capacity of 10,000 buses, or we will be going for the funding or fundraise? We expect the cash flows to improve significantly by doing these numbers when we talk about 4,000, 5,000 numbers. As of now, there's no plans of any equity fundraise. So, with the debt, the sanctioned debt, which we are availing now, we expect the numbers, the plant capacity to be ready for 5,000 numbers. As far as civil is concerned, we are building up the capacity up to 10,000 numbers. Whatever additional plant and machinery, battery equipment is required, we may need maybe around INR 100 crores to INR 200 crores to increase from 5,000 to 10,000 numbers. Okay. So, the recent government of India announced that they are looking for INR 1.75 lakh crores of budget for this, you know, e-buses and e-trucks. Do you think that we are just by building 10,000 buses order book or 10,000 buses capacity, is that sufficient that we are trying to be in the top five player of the country? It's way behind, isn't it? See, today, if you look at it, all entire India, taking into consideration all the capacities of all the players, it's definitely below the market demand and market expectations. So, so we are going step by step. We are first targeting to reach five thousand and ten thousand numbers, and if the really the market demand and market expectation comes into reality, we will accordingly take a decision to increase our capacities. Okay. I think that that gives a good confidence to all of us that you are gearing up for the, you know, future capacity requirement as well. Thank you very much, and all the best to the entire team. Thank you. Thank you, Mr. Anil. Thank you. The next question is from the line of Ritviz Vora, an individual investor. Please go ahead. Hello, am I audible? Yeah, actually, little breaking out is there. Is it any better now? Yeah, yes. Yeah, so good evening to you, sir. I just wanted to understand what is the current localization and how do we see it over the next two years? So as far as the localization is concerned, we've been working continuously. It's a continuous process. Except the battery cells and some of the powertrain components, other components are localized in India. We have developed various vendors. And localization is a continuous process. What we speak today will be different after three months, six months. So, we continue to strive to localize as much as parts possible. Right. So, do we meet the Government of India requirements to claim for the subsidies? Yes. Okay. My second question, if and when, BYD decides to set up a manufacturing plant and sell the e-cars in India, the electric cars in India, if and when, will it be through the same company or will it be a different entity which will be formed? So as of now, Olectra, we are focusing on electric buses and then electric truck segment. We don't have any interest in passenger vehicles. I'm talking of commercial vehicles, sir. Right. Even commercial vehicles, we don't have any focus. We don't have any interest as of now. Olectra is only for e-buses and the trucks and that is all, perfect. Correct. Correct, yes. Correct. So, one last question from my side. I'm missing the question. I will let it go if somebody would want to go ahead. Okay, thank you, Mr. Dhuti. Thank you. Thank you. The next question is from the line of Rajiv Mati, an individual investor. Please go ahead. Hi, sir. Good evening, sir. Good evening. Sir, my first question is, what is the run rate per month from October? What is the run rate? Yes, yes, per month, bus minus October. Next October to March, we are targeting about 1000 numbers. It will progress from October onwards. It will go up so that we meet the target of 1000 numbers. This is H2. Now, what is the revenue projection, 2025 and 2026? I could not hear. Can you repeat? What is the revenue projection, 2025 and 2026? Next year? Yeah, yes, 2025, current year. Yeah, it's about 3,500. Current year, turnover, the top line, we expect around two thousand five hundred. Next year? Next year, it will be more than somewhere between five thousand-seven thousand numbers. It all depends on the volume. We are targeting about four thousand-five thousand numbers. Accordingly, the top line could be about seven thousand five hundred numbers gross. Okay. Okay. Thank you, sir. Thank you. Thank you. Wish you good luck. Thank you. Thank you. The next follow-up question is from the line of Gaurang, from Unified Unity Search. Please go ahead. Yeah, thank you. I hope I'm audible. Yeah, yeah. Yeah, I've rejoined the line. Yeah, so I have a couple of questions. My first question is, the last new product that we had launched was way back in April of two thousand twenty-two. That was an electric tipper. So my question is, are we working on any new variant of that tipper, like a trailer or something, that we would be showcasing any sooner? We are working on truck side. Tippers is a dumper, so we are working on... Yeah. So we are working on various products inside, and appropriate time we will notify. In the truck segment itself, our R&D team has been working on various products. Okay. So, when can it be defined? Probably say in another year's time or so, or it will take, a little more time. Yeah, any R&D actually takes about two to three years. But we expect that the duration could come down. Okay, my follow-up question is, in the AGM, Mr. K. V. Prasad has had mentioned about battery energy storage system. So, I feel that it's one of the upcoming segments where there is a lot of talk about renewable energy getting implemented, and Government of India is particularly interested in this. Since the renewable energy will require battery energy storage system in huge numbers, so where have you reached till now in terms of battery energy storage system? What are the current strategic plans? So we, as of now, basically, we have an idea. We have deliberated, internally, so it is a very, very nascent stage. At appropriate time, we will revert back to the investors. Oh, great to know about it, but I would love to, you know, hear about this in probably few next few quarters, because I feel this has a huge potential. Okay. My other question is the electric tipper that we have made is, I believe, not from the BYD technology, but it's a homegrown technology within the R&D team, and it has a CATL battery. Am I right on that? Just one minute. Yeah. What do you? It's the four. Yes, yeah. Yes, you are, you are right on that, sir. So, we can say that we are no more dependent on any foreign technology. We have an in-house technology, and we can use it, right? Still, we are, as our CFO has said, still we are dependent on the foreign technology for the powertrain components as well as the cells, battery cells. Okay, understood. Okay, my last question. So recently I read in a Mid-Day article that Megha Engineering is going to conduct this Borivali-Thane tunnel project. It is the contractor which has been finalized. And in that article, it mentions that that project will require approximately somewhere around one thousand two hundred tipper trucks, because there is a lot of soil that is going to be dug because it is an underground tunnel. So, my question is whether our Olectra team is in touch with Megha Engineering team for these particular twelve hundred trucks, because I feel this is a huge opportunity which we should cater to. From time to time, we are in discussions with Megha Engineering. ... Yeah, hello. Ladies and gentlemen, we have lost the management line connection. Please stay connected while we reconnect them. Thank you. Ladies and gentlemen, we have the management line back on the call. Yeah. Hi, should I repeat my question? Yeah, yeah. You were talking about 1,200 numbers of Megha Engineering, right? Yeah, yeah. Yeah, I feel it's. As of now, we have a continuous dialogue with Megha Engineering. As of now, there is no discussion happened on the 1,200 numbers. So, it's a continuous process. Okay, understood. I'll definitely share that article with Mr. Hanumanth Prasad. Probably you guys can internally discuss, because I feel it's a fantastic opportunity that the company should take advantage of. So, I'll share that article with Mr. Hanumanth Prasad- Yeah. So the team can then go over. Yeah, thank you so much for your input. Yeah, yeah. That's it from my side. I wish you all a good luck for H2 and for even the next, forever the next year. Yeah, thank you so much. Thank you. The next follow-up question is from the line of Sanjay from SK Securities. Please go ahead. Mr. Sanjay, your line has been unmuted. Please go ahead with your question. Sorry, yeah, yeah. Thank you for opportunity again. I already got the answer for my question in previous questions. Thank you for that. Thank you. Thank you. The next question is from the line of Ayush Jain, an individual investor. Please go ahead. My congratulations for good set of number. I want to know how much loan amount have you utilized up to the date as a term loan and as a working capital? As of now, we have utilized about INR 50 crores term loan. How much, sir? Sorry. 50 crores term loan, as of now, we have utilized. Okay, and what about, sir, working capital? Working capital, we have utilized about INR 75-80 crores. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Sanket Kalsekar from Ashika Stock Broking Private Limited. Please go ahead. Hello, sir. I hope I'm audible. Yeah, it's audible. You are audible. Yeah, sir. Thank you. Thank you for the opportunity, and congratulations for a great set of number. I just have one question: what is your growth plan for the long term with respect to being staying ahead of the curve, like with respect to your R&D or with respect to growth? For example, many of your competitors have been tied up with foreign entities in order to scale up their technologies. So on that front. Yeah. Thank you, Mr. Sanket. Actually, to clarify your question, we are tied up with world's largest EV manufacturing company, BYD. Our agreement is till December 2030. So, they invest huge money in R&D, and whatever technologies they have on their platform, we do have access. So, we have that advantage by having the strategic and technological tie-up with BYD, which is the world's largest EV manufacturing company. I hope this clarifies. Oh, okay. Thank you, sir. I'm adding one more question. So this is, this will be the last question. I wanted to know, like, what kind of initiatives are we taking with respect to safety and hazards of, on our vehicle? All our buses, we have basically safety as one of our key initiatives. We have our own SOPs with regard to safety, and our buses meet the highest safety standards in terms of battery and in terms of other features. Okay. Thank you, sir. That's all from my side. Thank you. The next question is from the line of Ritviz Vora, an individual investor. Please go ahead. Sir, good evening once again. The question I missed that time, I think I just recalled. I wanted to understand if the industry works in the fashion in which currently Olectra is executing such deals like the one in Mumbai, where Olectra manufactures and sells it to a company, let's say, EvTrans, who then gives it to the end customer. Is this how it is across India, or is this some special kind of a setup only for Olectra? Yeah, just to clarify, NITI Aayog, when they drafted this, policy under FAME, they brought in the model called, GCC, Gross Cost Contract model. So, under this Gross Cost Contract model, there is, there are three parties involved. One is the manufacturer, second is the operator or owner of the fleet, third is the state transport utility, which is the end customer. So accordingly, as per this, model, not only Olectra, all the other companies also use the same, scheme of operation. Okay, thank you. Thank you for this. I think that really helps. Thank you. That's it from my side. Thank you. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants, you may press star and one to ask a question. As there are no further questions, I would now like to hand over the conference to the management for closing comments. Management? Yeah. We thank all the shareholders who have participated and have been very supportive in your company's growth journey, and the patience in the third quarter of your company. We expect good growth and profitability in H2 of this financial year. Thank you very much. Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you.