Ethanol, sugar, chemical is showing no growth, but there’s still a base level demand: TD Power Systems limited
TD Power Systems Limited reported record financial performance for the first half of FY 2025, achieving its highest revenue, EBITDA margins, and profit after tax. The company expects a growth rate of 3% to 4% in the domestic market and has a robust order book, particularly from exports, which account for 73% of total inflow. With a revised top-line guidance, TDPS anticipates overall growth of 25% to 27.5% for the year, driven by strong demand across various sectors and international markets.
TD Power Systems limited is poised for another round of growth. According to the TD Power Systems limited, they have exciting opportunities in front of company and they are gearing up to meet the demand with new and existing factories.
During Q2 FY 25 Earnings Conference Call on October 30, Nikhil Kumar – Managing Director, TD Power Systems Limited, emphasised on company’s growth and future opportunities.
Speaking on TDPS financial performance for six Months ended September 30th, 2024, he said, “We’ve had an exceptional half year with the highest ever revenue, highest EBITDA margins, highest ever PAT and highest ever order inflow. On a consol basis, our total income was Rs. 5.89 billion versus Rs. 5 billion, an increase of 18%. Profit after tax and other comprehensive income for six months is Rs. 764 million versus Rs. 584 million, an increase of 31%. We continue to maintain a strong cash position of Rs. 2.35 billion. Our total income on a standalone basis for H1 was Rs. 5.77 billion versus Rs. 4.94 billion over the same period the previous year, an increase of 17%. EBITDA for six months is 18.41% versus 17.44% previous period, including other operational income but excluding exceptional and treasury income. Profit after tax and comprehensive income for the six months is Rs. 720 million versus the profit of Rs. 600 million over the same period in the previous year, an increase of 20%.
On Market Scenario, He said, “The domestic market has been flat in terms of order inflow from a Q2 to Q2 basis. This has reversed the shrinkage that has taken place in Q1. Effectively, if you look at H1-to-H1, the drop in the domestic order inflow can be attributed solely to Q1. Steel and cement are still ordering large power plants up to sizes of around 100 MW, and we expect the market to be driven by these two sectors. Ethanol, sugar, chemical is showing no growth, but there’s still a base level demand. Overall, we are factoring 3% to 4% growth on domestic market for the next year, that is FY’26. We are expecting new tenders, four railways and we are certain to see two large tenders in the upcoming months. However, business for these railways tenders will be realized only in FY’27.
The order book for manufacturing segment is Rs. 12.34 billion, regular manufacturing business is Rs. 8.33 billion, Rs. 3.7 billion in the railway business, spares and aftermarket is Rs. 0.14 billion and Rs. 0.17 billion in the Turkey business. Export and deemed export constitutes about 71% of the order book excluding the railways.
The order inflow for the quarter is INR 3.6 billion. This is the highest ever order booking in the history of the company. Order inflow has increased 41% on a Q2 to Q2 comparison basis and 33% over H1-to-H1 comparison basis. The H1 order inflow total for the current year is INR 6.58 billion versus the previous year INR 4.93 billion. Strong order inflow momentum continues to drive our top line.
The order inflow continues to be very strong from export in company’s generator and motor businesses. Company’s expects the order inflow in Q3 to exceed the number in Q2, leading to a new record order book for the TDPS. Company said that we are pleased to revise our top-line guidance for this financial year from INR 1,200 crores to INR 1,250-1,275 crores which will result in an overall growth of 25% to 27.5% compared to the previous year. Margins will grow faster than sales due to operational leverage. Margin growth will be around 2% to 3% more than the sales growth.
Company has extremely strong growth in the order book in export businesses from gas turbines, gas engines and motors. Order inflow from direct and deemed exports for the first half is INR 4.78 billion compared to INR 2.36 billion in the previous year, which is more than double. Exports and deemed exports order inflow is 73% of the total order inflow. This shows the overall strength of the company in all geographies all over the world, presence in multiple sectors like gas, hydro, traction, clean energy, like biomass, heat recovery, etc.
TD Power Systems is an ISO 9001, ISO 14001 and OHSAS 18001 certified global technological leader in AC Generator and Motor Manufacturing, catering to industry verticals like renewables, co-generation, hydroelectric, oil & gas, electrical traction, marine and wind power. TDPS has more than two decades of experience in manufacturing custom electrical generators with a global footprint in nearly 104 Countries and 6000+ installations, making it a pioneer in the market. The company offers end-to-end, flexible solutions with state-of-the-art manufacturing systems, custom-built for the diverse needs of clients from across the globe. Headquartered in India and with sales offices in Japan, USA & Germany, TDPS also has a vast network of 57 service providers in 6 continents; helping it address customer needs with an exceedingly high level of precision and agility
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