Exicom Tele Systems Limited specializes in power management solutions across two primary business segments: the critical power business and the EV charger business. Under the Critical Power Business, the company is engaged in the design, manufacturing, and servicing of DC power systems and Li-ion energy storage solutions tailored for telecommunication sites. Concurrently, in the EV Charger Business segment, Exicom offers smart charging systems designed for residential, commercial, and public usage within India and is headquartered in India. The company adopts a vertical integration approach, overseeing product development from conceptualization to prototype testing. It operates two dedicated research and development (R&D) centers. Manufacturing of its product portfolio occurs in-house across three facilities situated in Solan, Himachal Pradesh, and Gurugram, Haryana, India. Together, these facilities boast an annual capacity of 12,000 DC power systems and 44,400 AC chargers and DC fast chargers. The total built-up area of these facilities spans 134,351.95 square feet.
Over the span of three years from 2021 to 2023, the company’s revenue fluctuated, starting at 513, rising to 843 in 2022, and then dropping to 708 in 2023, while its total assets and profit after tax (PAT) followed varying trends.
Established Presence in EV Charger Business: The company successfully commenced commercial sales of EV Chargers in the Fiscal Year ending March 31, 2019. Presently, it has supplied EV Chargers to a diverse clientele comprising over 70 customers, which notably includes 15 automotive OEMs, 32 national and regional CPOs, and 4 fleet aggregators, showcasing market penetration and acceptance.
Robust R&D Capabilities: Bolstering its innovation potential, the company boasts a sizable R&D team comprising 145 employees, as of September 30, 2023. These resources are strategically stationed across two R&D centers situated in Gurugram, Haryana, and Bengaluru, Karnataka, facilitating continuous research and development efforts.
Strategic Clientele in EV Charger Business: With a focus on established automotive OEMs in India such as Mahindra & Mahindra Limited, MG Motors Limited, and JBM Limited, along with national CPOs like Reliance BP Mobility Limited (JioBP) and Fortum Charge & Drive India Private Limited, the company maintains strong partnerships. Additionally, collaboration with fleet aggregators such as Blu Smart Mobility and Lithium Urban Mobility enhances market presence and revenue streams.
Revenue Growth and Profitability: Demonstrating financial stability, the company exhibited consistent revenue growth from operations, reporting figures of Rs. 512.9 cr, Rs. 842.8 cr, and Rs. 707.9 cr in FY 2021, 2022, and 2023, respectively. Moreover, it showcased profitability with Profit after Tax figures of Rs. 3.45 cr, Rs. 5.14 cr, and Rs. 6.37 cr during the same time periods.
Risks:
Dependency on Top Customers: The company’s reliance on its top five customers, who contributed over 50% of revenue from operations in the past three Financial Years under the Critical Power Business, poses a significant risk. Any reduction or loss of purchases from these key clients, including Government of India entities/PSUs, could adversely impact business operations, financial performance, and overall stability.
Reliance on International Suppliers: Heavy dependence on international suppliers for essential raw materials and key inputs presents a vulnerability. Limited ability to reduce this dependency increases susceptibility to manufacturing and delivery delays, potentially disrupting business operations and development programs.
Operating Losses: The company reported operating losses of Rs. 10.79 cr in the Fiscal Year ending March 31, 2021. Continuation of such losses in the future could adversely affect business sustainability and the value of Equity Shares.
Regulatory Risks in EV Industry: Despite benefiting from fiscal and non-fiscal incentives, tax benefits, and government schemes supporting the EV industry, any alterations or reversals of these schemes by the Government of India or State Governments could negatively impact the company’s financial performance, cash flows, and operational results.
Legal Proceedings and Contingent Liabilities: Involvement in ongoing legal proceedings, alongside certain contingent liabilities, pose risks to the company’s reputation, business operations, financial condition, and profitability. Adverse outcomes in these matters could have detrimental effects.
Dependence on Global Suppliers: Procuring nearly 67% of its material from suppliers in countries like China, Singapore, Hong Kong, and South Korea heightens dependency risks. Scarcity or unavailability of critical components or raw materials may result in manufacturing and delivery delays, impacting business operations and development programs.
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