About the Company:

Exicom Tele-Systems Incorporated in 1994, Exicom Tele-Systems Limited is a frontrunner in power systems and EV charging solutions.

The company operates in two key verticals:

Power Systems: Providing uninterrupted power solutions for digital communication networks.

EV Charging Solutions: Deploying over 61,000 AC and DC chargers in India and Southeast Asia.

As of September 2023, Exicom has installed more than 61,000 EV chargers across 400 locations in India, showcasing its robust presence in the growing EV market. A total of 1,190 employees are employed by the company in India, of which 443 are contractual, 732 are technical and subsidiaries employ 50 people. About manufacturing facilities, the company manufactures its products across three manufacturing facilities, the Solan Facility, Gurugram Facility I, and Gurugram Facility II.

Images of the products for better understanding: -

Revenue contribution

Exicom Tele-Systems Limited has demonstrated commendable performance in the six months ended September 30, 2023, with a substantial increase in total revenue. The critical power business continues to be the primary revenue contributor, while the EV charger business has shown significant growth, indicating the company's successful penetration into the evolving electric vehicle charging market. This diversified revenue stream positions Exicom Tele-Systems well for sustained growth and resilience in the dynamic market landscape.

Industrial overview:

It is becoming increasingly important for industrial companies to use edge computing, AI, machine learning, and blockchain, as well as advances in megawatt EV charging, IoT integration, Pantograph charging, and V2G technology, as well as the lucrative potential of EV charging stations that utilize renewable energy, especially solar power, to provide new market opportunities.

Financials:

Revenue Fluctuation:

The increase in revenue from ₹5,129.05 million in 2021 to ₹8,428.05 million in 2022 suggests a positive growth trend. However, the subsequent decrease to ₹7,079.30 million in 2023.

EBITDA Variability:

The significant increase in EBITDA from ₹295.15 million in 2021 to ₹674.21 million in 2022 indicates improved profitability. However, the subsequent decrease to ₹524.37 million in 2023.

Profit Growth:

The profit for the year from continuing operations has shown consistent growth from ₹126.76 million in 2021 to ₹310.31 million in 2023.

The substantial increase in RoCE from 5.33% in 2021 to 17.66% in 2022 suggests improved efficiency in utilizing both equity and debt to generate returns. However, the subsequent decrease was to 10.92% in 2023.

RoE has consistently improved over the analyzed period, indicating enhanced returns for equity investors. The decrease from 13.72% in 2022 to 13.38% in 2023 is relatively minor and may be considered within a normal range.

Risk Factors:

1. The electric vehicle supply equipment business (“EV Charger Business”) is correlated with and thus dependent upon the continuing rapid adoption of, and demand for electric vehicles ("EVs").
2. The company is dependent on the top five customers based on revenue contribution under their critical power solutions business (“Critical Power Business”), who contributed over 50% of the Company’s revenue from operations for the six months ended September 30, 2023, and September 30, 2022, and in each of the last three Financial Years and include Government of India entities/public sector undertakings “PSUs”. The loss of any of these customers or a reduction in purchases by any of them could adversely affect the company’s business, results of operations, and financial condition.
3. The Company is dependent on global suppliers for the supply of raw materials and key inputs and may not be able to reduce its dependency on such imports.
4. Companies typically do not enter into long-term arrangements with their customers and do not have any firm commitment to the quantity or price of products to be supplied thereunder.

Valuation:

The company's price-to-earnings ratio stands at the upper price band of 42.011 while the industry's PE ratio is 109.45. Additionally, the company's price-to-book ratio in the upper price band is 5.62, whereas the industry's PB ratio is 19.22.

Peer Comparison:

IPO Objectives:

The company proposes to utilize the Net Proceeds towards funding the following objects: 

● Part-financing the cost of setting up production/assembly lines at the planned manufacturing facility in Telangana 

● Repayment/pre-payment, in part or full, of certain borrowings of the company 

● Part-funding incremental working capital requirements 

● Investment in R&D and product development 

● General corporate purposes

IPO Details: