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

Executive summary

• Achieved highest-ever revenue, EBITDA margin, PAT, and order inflow for H1 FY25, with strong growth in both domestic and export markets and a robust global footprint in 110 countries.

• Order inflow reached record levels, with 71%-73% from exports, and the company is fully booked for the current financial year.

• 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

• Consolidated total income for H1 FY25 was ₹5,837 million, up 18% year-over-year; standalone income was ₹5,780 million, up 17%.

• EBITDA margin improved to 18.41% for H1 FY25, up from 17.44% year-over-year; PAT up 31% year-over-year to ₹766 million.

• Gross margin reached 36%, with guidance to maintain 33%-34% going forward.

• Order book as of September 30, 2024, stands at ₹12,344 million, up 33% year-over-year.

• Cash and cash equivalents (consolidated) at September 30, 2024, were ₹8,399.02 lakhs.

Outlook and guidance

• FY 2025 revenue guidance revised to ₹12,500–12,750 million, with margin growth expected to outpace sales growth by 2%-3%.

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

• CapEx for FY 2025 projected at ₹800 million; new plant expected to add ₹4,000 million turnover at peak utilization.

• FY 2026 top-line growth expected to exceed earlier 17%-18% CAGR guidance, with updated guidance to be provided in February.

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