The Indian government is aggressively promoting the growth of the electric vehicle (EV) industry in India. As part of this effort, the central government has allocated ₹800 crore to public sector oil marketing companies (PSU OMCs) to establish 7,432 public charging stations across the country.
Additionally, there are plans to enhance bus operations by deploying 10,000 electric buses through a public-private partnership (PPP) model.
To support and advance the EV industry, the government has developed an EV policy framework that emphasizes EV charging infrastructure. In light of these recent developments, a leading company in the public charging segment has been performing well since its listing in the Indian market.
Exicom Tele-Systems Ltd is a leading player in India’s electric vehicle (EV) industry, specializing in the development and manufacturing of EV charging solutions. The company provides a wide array of charging products, including both AC and DC chargers, designed to meet the needs of residential, public, and fleet charging applications.
About the company: Exicom Tele-Systems is an Indian provider of power management solutions. The company operates in two key business areas: first, it designs, manufactures, and services DC Power Systems and Li-ion-based energy storage solutions for energy management at telecommunications sites and enterprise environments both in India and internationally, second, it offers solutions for electric vehicle supply equipment.
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As of March 31, 2023, the company held approximately 60% market share in the residential charging segment and 25% in the public charging segment (Source: CRISIL Report). By March 2024, Exicom Tele-Systems had deployed over 65,000 chargers across more than 400 cities in India.
In the DC Power Systems market, the company has a 16% share, and for Li-ion batteries used in telecommunications, it holds around 20% market share as of March 31, 2024. The company’s in-house manufacturing capacity for FY 2024 includes over 130,000 rectifiers and 12,000 DC Systems.
The Exicom Tele-Systems marquee clients includes Reliance Industries, BSNL, BluSmart, and Shell petroleum. The top clients make 64.1% total revenue of the company. and the company makes 6.9% of revenue from the export market.
Exicom Tele-Systems Ltd was listed on March 5, 2024, with shares priced at ₹264 each, reflecting an 85.9% premium over its IPO price range of ₹135 to ₹142. The company raised ₹429 crore through its IPO, comprising a fresh issue of ₹329 crore and an offer for sale of ₹100 crore.
The IPO funds were planned for setting up production lines at a new manufacturing facility in Telangana, enhancing production capacity, particularly in the electric vehicle (EV) charging solutions segment. Additionally, the funds will be used to repay existing debt, invest in research and development for product innovation, and support general corporate purposes for overall business growth.
Since its listing, Exicom Tele-Systems Ltd shares have achieved a remarkable 102% return, rising from ₹224.95 per share to the current market price. This means an investment of ₹1 lakh in the company would now be worth ₹3.24 lakhs in less than four months.
Financials: Exicom Tele-Systems Ltd reported a 67% increase in revenue year-over-year, rising from ₹516 crore in FY22-23 to ₹866 crore in FY23-24. Over the same period, net profit surged by 725%, from ₹8 crore to ₹66 crore.
On Wednesday, Exicom Tele-Systems Ltd shares were trading at ₹456.30 each on the Bombay Stock Exchange. The company’s market capitalization stands at ₹5,606 crore.
For FY24, the company achieved a gross margin of 26.8%, a Return on Capital Employed (ROCE) of 12.8%, and a Return on Equity (ROE) of 8.9%. The company’s working capital days are 96.
As per the latest shareholding pattern, promoters own 69.57% of the company, retail investors hold 20.93%, and Foreign Institutional Investors possess 1%.
Written by Omkar Chitnis
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