Sar Televenture Limited — Investor Meet, 21-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** SAR Televenture reported robust growth in Q3 FY25, with significant revenue increases driven by its recent acquisitions and infrastructure investments. The company anticipates a revenue jump of over 100% going into FY26, attributed to the ongoing capex and operationalization of new towers. Current capital expenditures are projected at ₹375-400 crore (cr), with expectations to add 400-500 towers by fiscal year-end. The nine-month consolidated revenue shows strong upward momentum, positioning SAR Televenture favorably in the market.

**Future Outlook and Growth Drivers:** Management expressed confidence in future growth fueled by capex completion transitioning into revenues, especially from FTTH services and tower installations. Guidance suggests a steady pipeline of projects, particularly the integration of newly acquired companies, Tikona and FusionNet, which are expected to contribute substantially in FY25 and beyond.

**Order Book and Operational Updates:** The order book remains stable with approximately 5,000 towers in the pipeline, while recent government contracts, including smart meter installations, are valued around ₹90 crore. The company is also poised to expand its FTTH footprint, projecting operational connections to rise significantly.

**Analyst Q&A Insights:** Analysts probed into revenue diversification, competitive positioning, and operational risks. Management highlighted that while SAR Televenture primarily serves Airtel and BSNL, plans are in place to enhance partnerships with smaller ISPs to mitigate reliance on major clients. Capex strategy and operational efficiency were also discussed, with management signaling strong cash reserves to support initiatives without incurring debt.

**Market or Regulatory Updates:** Discussion around regulatory impacts remained limited, with management emphasizing that they operate as per telecom operators' requirements, making them less susceptible to regulatory risks.

**Strategic Focus Areas:** The focus on innovative solutions, particularly in small-cell towers and FTTH, underscores SAR's competitive advantage in the rapidly evolving telecom infrastructure landscape. The successful integration of acquisitions further strengthens this strategy.

**Investor Insight:** Given SAR Televenture's impressive financial trajectory, anticipated revenue growth, and strategic acquisitions, the outlook aligns favorably for a ‘buy’ position. The proactive approach to capex and market expansion adds confidence to its growth narrative. Investors should watch for regulatory developments and integration progress with Tikona, which could define near-term performance.