TD Power Systems Limited (533553) Q4 12/13 earnings summary

Executive summary

• FY13 standalone revenue from operations and other income fell 30% to Rs 44,963.46 lakh; EBITDA declined 22.71% to Rs 6,951.54 lakh and PAT fell 29% to Rs 3,567.44 lakh.

• Lower order inflows amid weak domestic investment weighed on manufacturing, project and EPC activity; exports contributed 31% of manufacturing revenue and the generator range was being expanded to 200 MW.

• Consolidated revenue was Rs 61,786.90 lakh and PAT Rs 4,174.13 lakh; the consolidated business also reported positive operating cash flow of Rs 649.57 lakh.

Financial highlights

• Standalone revenue from operations was Rs 42,379.81 lakh versus Rs 62,521.20 lakh in FY12; other income rose to Rs 2,583.65 lakh from Rs 1,568.21 lakh.

• Standalone PBT was Rs 5,384.66 lakh versus Rs 7,382.59 lakh; PAT was Rs 3,567.44 lakh versus Rs 4,981.81 lakh.

• Consolidated net sales fell 43.09% to Rs 58,706.55 lakh; total income was down 41.38% to Rs 61,786.90 lakh.

• Consolidated PBT was Rs 6,443.29 lakh versus Rs 9,856.73 lakh; PAT fell 57.98% to Rs 4,174.12 lakh from Rs 6,594.13 lakh.

• Manufactured 273 generators across output ranges up to 52 MW, versus 308 in FY12.

Outlook and guidance

• March 2013 pending orders were ~Rs 31,500 lakh; management expected domestic and overseas orders to improve, supporting FY14 revenue and margins.

• New 54–200 MW generator facility was expected to finish in December 2013 and commission in FY14 Q4; orders had been received for FY15 delivery.

• Exports were expected to rise to ~45% of manufacturing revenue in FY14, from 31% in FY13; FY13 products had reached 60 countries.

• EPC order book stood at Rs 36,131 lakh at March 31, 2013; management expected FY14 performance to be sustained and growth to revive in FY15.

• Project business contribution was expected to remain subdued in FY14 amid weak orders and yen appreciation; waste-to-energy opportunities and a 27 MW cement EPC project were in the pipeline.