Our portfolio is diverse and flexible, ranging from small to large power systems.
Dear Shareholder,
It gives me immense pleasure to present our maiden post-IPO annual report for the
financial year 2023-24 (FY24). This moment has profound significance for all of us at
Exicom. We believe our business is the harbinger of change — unlocking the power to
go electric and leading the charge towards a future that is better, cleaner and more
sustainable.
We came out with an IPO and got listed on the both NSE and BSE on March 05, 2024. The
IPO received significant investor interest, with oversubscriptions exceeding 129 times
across all investor categories.
On behalf of the Board and the entire leadership team, I convey my deepest appreciation
and gratitude to all our investors, regulator and other stakeholders for placing your
invaluable trust and support in our vision and capabilities.
Before I share our financial performance and strategic outlook for the future, it is
important to discuss our broad operating landscape in a nutshell. The global economy
continues to grapple with uncertainty, although initial signs of stability are visible.
The Central Banks worldwide are trying to enhance growth and employment opportunities,
while leaving no stone unturned to curb inflation.
However, persistent geopolitical conflicts between Russia and Ukraine and in the Middle
East may pose potential downside risks. On the contrary, India remains one of the fastest
growing major economies of the world, registering 8.2% growth in FY2023-24, creating
large-scale opportunities for employment and businesses. This has been the outcome of the
Government's continued drive towards building quality infrastructure and making India a
global hub of manufacturing, without losing focus on sustainability.
Charged up for the Future
Exicom, as you are aware, is a sustainable energy company and we operate in two
business verticals. One is EV charging, where we enable electrification of transportation.
We manufacture innovative AC and DC fast chargers in this vertical. On the other hand, we
provide power conversion and Li-ion storage solutions, which facilitate energy stability
of digital communication infrastructure.
We observe, the gradual transition to electric mobility is a promising global strategy
for decarbonizing the transport sector. India is among a handful of countries that support
the global EV30@30 campaign, which aims to have at least 30% new vehicle sales to be
electric by 2030. The demand for electric buses is also likely to remain robust in the
coming years due to the focus on cleaner mass transportation systems. The Government of
India is expected to release the new EV policy framework with enhanced focus on EV
charging infrastructure.
Exicom is the undisputed market leader in EV residential chargers with 60% market share
and 25% market share in public chargers. I am happy to share that at the end of FY24 75K+
chargers were deployed across 400+ cities in India. We are sharpening our focus on product
customisation, design innovation and software integration as our key differentiating
factors in the EV charging ecosystem.
With in-house IP, large R&D teams of 130+ engineers, robust product pipeline and
pan India service, we are well positioned to capture the growing EV Charger market in
India. The EV Charger business grew at 8% and supported deployments across all vertical
markets including home chargers, network rollout by leading charge point operators,
captive fleet charging, and heavy- duty vehicle charging.
Flexible and Diverse Critical Power Portfolio
During the year, our critical power business also benefited significantly from the
ongoing 4G/5G deployments by telecom companies, replacement of battery assets to Li-ion by
leading tower infrastructure companies and also projects funded by the Government of
India. These projects are aimed at creating or upgrading telecommunications network,
particularly in underserved regions. Government initiatives are expected to connect rural
areas, for example providing 4G connectivity to 24,680 villages in India.
Our portfolio in this segment is diverse and flexible, ranging from small to large
power conversion and energy storage systems for all types of applications in the telecom
sector. The power systems are customised to fulfil various customer specifications.
During the year, we executed marquee projects including deploying power solutions and
services for switching centres of an upcoming 4G network. We supplied end-to-end
integrated power solutions in Africa and forayed into fast growing Vietnam Market. We
continued to support India's Telecom Infra expansion by our renewable hybrid solutions,
batteries and other customised products.
Encouraging Financial Performance
I am pleased to report that our total revenue surged to H1,020 Crores in FY24, a robust
44% increase from H708 Crores in the previous fiscal year. This remarkable growth
underscores our successful execution of the order book and the growing demand for our
solutions across both business units.
In the fiscal year 2024, we had a total of H1,106-crore order book, compared to H952
crore in the previous financial year. This growth is reflective of our expanding customer
base and operating efficiencies across both Critical Power and EV Charging segments.
Our Critical Power division achieved a stellar 60% growth year-on-year, with revenue
climbing from H489 Crores to H776 Crores. This exceptional performance was driven by
several factors, including the ongoing deployment of 5G technology by telecommunications
operators, the transition from lead-acid to lithium-ion batteries by major Tower
Companies, and an increase in exports and large- scale telecom network upgrades,
particularly in underserved regions.
Our EV Charging business saw a commendable 11% revenue growth, rising from H219 Crores
to H243 Crores. This growth was supported by deployments across various vertical markets,
including home chargers, network rollouts by leading charge point operators, and charging
solutions for captive fleets and heavy-duty vehicles such as buses and trucks.
Strategic Positioning and international Expansion
Our strong relationships with leading car OEMs, top charge point operators and fleet
aggregators, combined with our state-of-the-art product portfolio, position us favourably
to capitalise on the expanding EV infrastructure market. We remain committed to exporting
advanced Indian technology solutions to international markets, with ongoing efforts to
diversify our geographical revenue streams in Southeast Asia and Europe.
In the Critical Power segment, we are well-positioned to benefit from the solarisation
of telecom sites, the shift from lead-acid to lithium-ion batteries, and large-scale
government-funded projects. These include network upgrades for leading telecom service
providers, extending communication networks to uncovered border villages, and connecting
over 1 lakh panchayats with high-speed broadband. Our comprehensive product offerings and
customer approvals, along with new value-engineered power converters, enhance our ability
to compete for these opportunities. Additionally, we are excited about participating in
various pilot projects within the rapidly growing data centre market, particularly with
our new lithium-ion battery solutions.
R&D investments
Our commitment to research and development remains at the core of our strategy.
Investment in R&D has enabled us to develop next-generation chargers and power
conversion
During the year, our critical power business also benefited significantly from the
ongoing 4G/5G deployments by telecom companies, replacement of battery assets to Li-ion by
leading tower infrastructure companies and also projects funded by the Government of
India. These projects are aimed at creating or upgrading telecommunications network,
particularly in underserved regions. Government initiatives are expected to connect rural
areas, for example providing 4G connectivity to 24,680 villages in India.
equipment that meet the latest industry standards and enhance user experience.
Noteworthy among our recent innovations are the upgraded Spin Air home chargers and the
Gen 1.5 Harmony 400 kV DC fast chargers. These
advancements not only ensure longterm business viability and market relevance, but also
revolutionises the charging experience for all types of drivers and vehicles
Nurturing a High- performance Culture
We are deeply committed to promoting a high-performance culture that supports our
growth objectives by offering a range of training programmes, leadership development
modules and employee engagement sessions. Through the use of HR analytics, we ensure
effective leadership transitions and succession planning. Our commitment to attracting and
retaining top talent is further strengthened by competitive compensation packages, stock
options, and incentives. Additionally, we are deeply committed to nurturing an inclusive
work environment and enhancing the representation of women within our organisation.
Sustainability Practices
At Exicom, our commitment to sustainability is unwavering. We have recently installed
solar panels (250 KWH) for power generation, which allows us to harness renewable energy
and achieve an estimated 7% reduction in our energy consumption. This step reflects our
dedication to minimising our environmental footprint and advancing our green initiatives.
Our partnership with EEE taxis underscores our effort to promote eco-friendly commuting
options for our employees, thereby contributing to a significant reduction in carbon
emissions.
As we continue to enhance our sustainability practices, we are also undertaking a
comprehensive materiality mapping exercise. This will enable us to better understand and
disclose our environmental and social impacts to our stakeholders in the coming years.
Well-positioned for Growth
Before concluding, I wish to touch briefly on our Hyderabad project, where we are
developing an integrated manufacturing complex for all our product lines, whether it is
power conversion equipment, lithium batteries or state-of-the-art EV chargers. I am happy
to share that the construction is continuing in full swing; and we expect to complete the
civil work by the end of this calendar year (2024) and commence trial production by April
of 2025. This facility will enhance our production capabilities and support our growth
objectives.
On the EV ecosystem front, we are well positioned to continue our growth trajectory,
driven by our strategic emphasis on R&D and manufacturing and technology related
capex, deepening our footprint into Southeast Asia and the Middle East and focusing on
market expansion. In Critical Power, we have built technologies which will not only help
Telco's to expand networks but even other allied industries such as battery supply
microgrids and so on.
We are confident that we have the right vision and the capability to make a difference,
electrify the future and create sustainable value for all stakeholders.
Thank you for your continued trust and support.
Sincerely,
Anant Nahata MD & CEO
Exicom Tele-Systems Limited