Suyog Telematics Limited , a player in the Indian telecommunications infrastructure sector, has witnessed a significant change in its shareholding pattern. According to a recent disclosure, Suchitra Lature has acquired a substantial stake in the company through a preferential allotment.

Key Details of the Acquisition

Impact on Shareholding

The acquisition has led to a notable increase in the combined shareholding of Suchitra Lature and persons acting in concert. Following this transaction, their total stake in Suyog Telematics has risen to 52.03% of the company's total diluted share capital.

Regulatory Compliance

In adherence to regulatory requirements, Suyog Telematics Limited has submitted the necessary disclosure to the stock exchanges. The company filed the information under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Company's Response

Aarti Kamlesh Shukla, the Company Secretary & Compliance Officer of Suyog Telematics Limited, confirmed the receipt of the intimation from Suchitra Lature regarding the acquisition. The company has duly informed both the BSE Limited and the National Stock Exchange of India Limited about this development.

This move by Suchitra Lature to increase her stake in Suyog Telematics represents a significant change in the company's ownership structure. The long-term implications of this change in shareholding pattern remain to be seen.

Suyog Telematics Limited , a prominent player in the telecom infrastructure sector, has reported a robust 16% year-on-year revenue growth for Q2, with consolidated revenue reaching INR 554.00 million. The company's performance highlights its resilience in a traditionally sluggish quarter for the telecom industry.

Financial Highlights

• Revenue from operations grew by 16% year-on-year in Q2
• EBITDA margin stood strong at 75%, increasing by 201 basis points
• PAT margin maintained at 30%
• Revenue per tenancy improved to INR 25,000 from INR 22,000 in March

Operational Performance

Suyog Telematics ended the quarter with 5,861 towers and 7,163 tenancies, maintaining a healthy tenancy ratio of 1.22. The company has also expanded its fiber network to 6,152 kilometers.

Future Growth Drivers

BSNL Partnership

• Suyog is in the final stages of negotiation for a significant order from BSNL
• Expecting allocation of 6,000 sites out of a total 17,000 site tender
• Rollout expected to commence from Q4

Vodafone Idea (VI) Expansion

• Received orders for 500+ macro sites from VI
• Deployment has begun, with a target of 1,000 sites by the end of the fiscal year

Airtel 5G Upgrades

• Commenced 5G upgrades for Airtel on existing sites
• Expected to upgrade 2,500 sites, providing an additional revenue of INR 3,000-4,000 per site per month

Strategic Initiatives

1. Inorganic Growth: The company is in advanced talks for potential acquisitions, particularly in the Delhi and Rajasthan circles.

2. Fiber Projects:

   • Near completion of a 1,000+ km aerial fiber tender from MTNL in Mumbai
   • Engaged in a INR 35.00 crore fiber project for data centers

3. Diversified Revenue Stream: Aiming for a balanced revenue mix with Airtel contributing 35-40%, Jio 20-25%, BSNL 15%, and VI around 30%.

Outlook

Suyog Telematics maintains its revenue guidance of INR 250.00 crores for the fiscal year, with PAT expected to be around 30% of revenue. The company anticipates reaching 8,500-9,000 tenancies by the end of the fiscal year and projects growth to 15,000 tenancies in the following fiscal year.

Management Commentary

Tushar Shah, Business Head (India), stated, "We are set for a major rollout in the coming quarters. With the planned expansions and upgrades, we are confident of taking Suyog to the next level, starting Q4 onwards."

Shivshankar Lature, Managing Director, added, "The telecom industry is very stable, and with the recent developments in BSNL and VI, we see significant growth opportunities. Our focus remains on maintaining our EBITDA margin of 70% and net profit of 30%."

While the company faces some delays in project rollouts due to government procedures and seasonal factors, management remains optimistic about the overall market stability and growth prospects in the telecom infrastructure sector.

Investors should note that while the company's growth plans are ambitious, execution risks and potential delays in government projects could impact the timeline for achieving these targets.