FY18 BOO will have 183 MW compared with 88MW at IPO. and is growing further.
FY18 revenue from BOO at 23 million and growing ( much of the MW power supply has not been recognized for a year,) so next year BOO supply charges may exceed 30 million.
I would like to know what are the net profit margins on the power supply in the BOO model.
If we ignorantly calculate 10% net profit per year on the 58 million in BOO assets invested so far, then we can imagine over 5.8 million profit just from the BOO power supply, and on 13% profit margin it will be over 7.5 million.
Obviously, with scale, ZEN can minimize expenses. and profit margins can increase.
Another profit estimation can be calculated on the profit margins from the operation
e.g. assuming FY 19 revenue from BOO power supply is 32 million with 20% going to the bottom line
Then we look at 6.4 million profit just from the BOO power supply model. ( these are just numbers thrown
in the air, obviously, reality will prove to be completely different) .
If all continue the way it seems right now, we may be in a good long-term business investment right here.
Funny, but not long ago i have decided not to own too many things and live a simple life renting material rather than owning and than worrying about my assets, so nowadays I am submerged in the equity market and am a partially the owners of power generators(ZEN) , medical equipment( PGC), mines all over the world ( BHP), tv channel ( PRT), and on it goes. happy to be a traveling/ observing fly on the wall.