TD Power Systems Limited (533553) Q4 16/17 earnings summary

Executive summary

• FY17 standalone total income fell 18.34% YoY to Rs. 38,738.07 lakh; PAT declined to Rs. 8.90 lakh from Rs. 1,497.88 lakh.

• Consolidated net sales fell 25.03% YoY to Rs. 37,990.90 lakh; net loss narrowed to Rs. 448.43 lakh from Rs. 918.54 lakh.

• Exports and deemed exports rose to 73% of manufacturing order inflow, while the March 31, 2017 order book stood at Rs. 35,405.45 lakh.

Financial highlights

• Standalone revenue from operations was Rs. 36,944.03 lakh and other income Rs. 1,794.04 lakh; total income was Rs. 38,738.07 lakh, down 18.34% YoY.

• Standalone EBITDA fell 35.20% YoY to Rs. 3,247.46 lakh; PBT declined 95.92% to Rs. 69.08 lakh and PAT 99.41% to Rs. 8.90 lakh.

• Consolidated total income declined 24.02% YoY to Rs. 40,036.04 lakh; PBT loss was Rs. 375.54 lakh versus Rs. 691.55 lakh.

• Consolidated PAT loss narrowed to Rs. 448.43 lakh from Rs. 918.54 lakh; EPS improved to negative Rs. 1.35 from negative Rs. 2.76.

Outlook and guidance

• FY18 pipeline described as promising; steam-generator exports, US orders, an extended exclusivity arrangement and steady Indian customer business expected to support orders.

• A European MNC order for traction-motor components for Indian Railways is valued at about Rs. 750 crore over 10 years, with supply starting in 2018 and technology licensed by an affiliate.

• Turkish-made generators meeting local-content requirements could contribute significantly to revenue and margins over the next three years; moderate revenue growth and improved performance were anticipated.