Suyog Telematics Limited — PPTs, 21-05-2025: Investor Presentation

1. Financial Highlights:

Revenue increased 15.6% YoY to INR 1925.7 Mn in FY25. EBITDA grew 17.3% to INR 1376.3 Mn with margin expansion of 104 bps to 71.5%, excluding one-time ESOP charges. Adjusted net profit rose 7.5% to INR 680.5 Mn, driven by improved operational efficiency. Cash from operations remained robust at INR 710.6 Mn, with free cash flow at INR 211 Mn. Capital work-in-progress surged to INR 461.7 Mn, signaling ongoing investments. Trade receivables also increased to INR 630.2 Mn, reflecting business growth.

2. Strategic Initiatives & Growth Drivers:

Suyog is accelerating its small cell network, essential for 5G, with 4000+ existing tenancies and plans for 3000+ more next year. Over 1000 new macro towers are also planned for MTNL. Fiberization and FTTH projects aim to strengthen 5G readiness and rural penetration. The company’s R&D focuses on cutting power costs using wind turbines and zinc battery testing, which could improve operating expenses on power backup.

3. Business Developments:

The acquisition of a 95% stake in Lotus Tele Infra Pvt Ltd, adding 120 telecom sites in Delhi NCR, enhances presence in a strategic market. This acquisition is expected to boost tenancies by 50% within six months, leveraging synergies with existing Mumbai operations and onboarding key telcos Vodafone and BSNL.

4. Market Position & Competitive Advantage:

Suyog stands as a top IP-1 passive infrastructure player across 26 states with 7000+ tenancies. Its diversified assets include government sites, small cells, rooftops, and ground towers. Long-term contracts averaging about 10 years with leading telcos like Bharti Airtel, Reliance Jio, Vodafone Idea, Tata, and BSNL provide revenue stability. The company’s cost-effective deployment and high service reliability deliver a strong competitive edge.

5. Investor Implications:

Robust cash flows, asset diversification, and aggressive small cell expansion aligned with India’s 5G rollout point to positive growth potential. The recent Delhi acquisition strengthens leadership and visibility. Execution risk around capex scaling, asset integration, and rising receivables warrants monitoring. Innovations in power management may further boost margins and cash flow resilience.