TD Power Systems Limited (533553) Q4 17/18 earnings summary

Executive summary

• FY18 standalone income rose 15.86% to Rs.44,884.19 lakhs and PAT reached Rs.1,239.29 lakhs, supported by manufacturing growth and a Rs.2,213.98 lakh exceptional item.

• Consolidated results remained loss-making: income rose 12.65% to Rs.45,075.95 lakhs while PAT loss widened to Rs.1,442.44 lakhs.

Financial highlights

• Standalone EBITDA, including other income and exceptional items, increased 54.36% to Rs.5,079.12 lakhs from Rs.3,290.43 lakhs.

• Standalone PBT before exceptional items was a loss of Rs.502.53 lakhs; after Rs.2,213.98 lakhs of exceptional income, PBT was Rs.1,711.45 lakhs.

• Consolidated net sales rose 14.46% to Rs.43,487.94 lakhs; consolidated EBITDA fell to Rs.2,424.46 lakhs from Rs.2,841.82 lakhs.

• Consolidated loss after tax widened to Rs.1,442.44 lakhs from Rs.442.65 lakhs; basic and diluted EPS was negative Rs.4.34.

Outlook and guidance

• FY19 outlook anticipated benign exchange rates but challenging raw-material costs; price revisions and ongoing cost-reduction initiatives were expected to provide limited offset.

• Steam, hydro and gas-engine generators were expected to remain key revenue drivers; hydro execution was expected to dip in FY19 before stronger FY20 delivery.

• Gas-engine growth expectations moderated from double-digit to high-single-digit after a major customer announced its intention to sell.

• Wind orders pending delivery in FY19 totaled 100 MW; a further 300 MW of secured pipeline was expected to execute over FY20-FY21, subject to financial closure.