TD Power Systems Limited (533553) Q4 15/16 earnings summary

Executive summary

• FY16 standalone revenue rose 12.42% to Rs 47,436.15 lakh, while PAT fell 11.70% to Rs 1,497.88 lakh; consolidated revenue declined 15.18% and results swung to a net loss of Rs 918.54 lakh.

• Standalone growth came primarily from project business, which nearly doubled; manufacturing revenue was broadly flat amid weak demand and 19% lower manufacturing order inflow.

• Year-end pending orders were Rs 36,386.42 lakh; FY17 outlook remained cautious, with exports a priority and overall growth expected to remain flat.

Financial highlights

• Standalone revenue from operations and other income totaled Rs 47,436.15 lakh versus Rs 42,195.06 lakh in FY15; net sales were Rs 45,535.02 lakh, up 12.50%.

• Standalone EBITDA was Rs 5,011.73 lakh, down 8.43%; PBT declined 26.42% to Rs 1,692.66 lakh and PAT fell 11.70% to Rs 1,497.88 lakh.

• Consolidated net sales fell 15.18% to Rs 50,675.12 lakh; PBT was a loss of Rs 691.55 lakh and net loss was Rs 918.54 lakh, versus FY15 net loss of Rs 82.84 lakh.

• Standalone EPS was Rs 4.51 versus Rs 5.10; consolidated EPS was negative Rs 2.76 versus negative Rs 0.25.

Outlook and guidance

• FY17 growth outlook was flat amid domestic market uncertainty and weak order conversions; some export order inflows could provide upside.

• Exports remain the focus in FY17; steam, hydro and gas-engine generators are expected to drive revenue, while project business revenue is expected to remain flat.

• Management expects to sustain market share in steam generators up to 55 MW, diesel generators and hydro generators, and to benefit from any domestic or overseas demand recovery.