TD Power Systems Limited (533553) Q1 24/25 earnings summary

Executive summary

• Consolidated total income for Q1 FY25 rose 24% year-over-year to INR 2.77 billion, with profit after tax and OCI up 36% to INR 356 million.

• Achieved highest ever quarterly order inflow in Q1FY25, with a 25.4% YoY increase to Rs. 2,968 Mn and a total order book of Rs. 12,150 Mn as of June 30, 2024.

• Standalone income increased 13% to INR 2.66 billion, and standalone PAT was INR 312 million, up 7% year-over-year.

• Installed 122 generators in Q1FY25, with 63% exported, reflecting a 17% YoY growth in export supply.

• Unaudited financial results for the quarter ended June 30, 2024, were approved and published, reflecting continued growth in revenue and profitability year-over-year.

Financial highlights

• Q1FY25 total income rose 24.1% YoY to Rs. 2,742 Mn; EBITDA increased 24.5% YoY to Rs. 488 Mn, with EBITDA margin steady at 17.8%.

• Standalone revenue from operations for Q1 FY25 was ₹26,358.45 lakhs, up from ₹23,028.23 lakhs in Q1 FY24.

• Standalone profit after tax for Q1 FY25 was ₹3,194.04 lakhs, up from ₹2,953.06 lakhs in Q1 FY24.

• Order book for manufacturing segment stands at INR 12.15 billion, with INR 7.88 billion in generators and motors, INR 3.94 billion in railway, and the remainder in spares, aftermarket, and turnkey.

• Q1FY25 PAT grew 32.6% YoY to Rs. 353 Mn, with PAT margin improving to 12.9%.

Outlook and guidance

• FY25 sales guidance is INR 1,200+ crore, targeting 20% top-line growth over the previous year.

• Margin growth is expected to outpace sales growth by 3-4 percentage points due to operational leverage.

• Baseline guidance for FY26 is 17-18% top-line growth, with management aiming to exceed this.

• Management expects continued improvement in subsidiary performance, especially in the USA, with positive trends in revenue and profitability supporting a going concern basis.

• Ongoing investments in automation and capacity augmentation to support efficiency and future growth.