TD Power Systems Limited (533553) Q2 24/25 earnings summary

Executive summary

• Achieved record-high revenue, EBITDA, and PAT margins in H1 FY25, with consolidated total income up 18% year-over-year to INR 5.89 billion and PAT up 31% to INR 764 million.

• Order inflow reached record levels, with 73% of H1 FY25 orders from exports and a robust pipeline for 2-pole generators and motors.

• Expanded global footprint, now present in 110 countries, with significant new orders in the Middle East, Europe, US, and Asia.

• Standalone and consolidated unaudited financial results for the quarter and six months ended September 30, 2024, were approved, showing strong year-over-year growth in revenue and profitability.

• Interim dividend of ₹0.60 per equity share declared for FY 2024-25, payable within 30 days.

Financial highlights

• H1 FY25 consolidated revenue rose 18% YoY to ₹5,837 million; EBITDA up 25% YoY to ₹1,075 million; PAT up 31% YoY to ₹764 million.

• Standalone revenue for Q2 FY25 was ₹30,445.32 lakhs, up from ₹25,539.88 lakhs in Q2 FY24; six-month revenue reached ₹56,803.77 lakhs, up from ₹48,568.11 lakhs year-over-year.

• EBITDA margin improved to 18.41% for H1 FY25, with gross margin reaching 36% due to favorable product mix and higher export orders.

• Order book as of 30 Sept 2024 stands at ₹12,344 million, up 33% YoY.

• Basic EPS (standalone) for Q2 FY25 was ₹2.64, up from ₹2.09 in Q2 FY24.

Outlook and guidance

• Revised FY25 top-line guidance to INR 1,250–1,275 crore, implying 25–27.5% growth over previous year.

• Margins expected to grow 2–3% faster than sales due to operational leverage.

• Business outlook for the next two quarters is very strong, with factories operating at full capacity and robust order inflow.

• FY26 guidance to be provided in February, with management expecting to exceed earlier 17–18% growth estimates.

• Management expects continued improvement in market conditions, especially for the Indian subsidiary, and ongoing reduction of accumulated losses in the US subsidiary.