Techno Electric & Engineering Company (TECHNOE) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong financial performance with revenue from EPC at INR 213.74 crore, up 19.55% year-over-year, and robust order book ensuring high revenue visibility for the next 36 months.

• Maintains a debt-free status, AA long-term credit rating, and a market cap of $2 billion as of June 2024.

• Significant cash and investments post-QIP at INR 2,500 crore, supporting future growth.

• Active in power generation, transmission, distribution, industrial, and data center sectors, with over 400 projects completed.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved and reviewed by the Board and auditors, with no material misstatements found.

Financial highlights

• Q1 FY25 standalone revenue from operations was ₹41,374.06 lakhs, up from ₹34,607.15 lakhs in Q1 FY24; EBITDA at INR 56.53 crore, up 19.05% year-over-year.

• Standalone net profit after tax from continuing and discontinued operations was ₹10,043.61 lakhs, compared to ₹5,130.09 lakhs in Q1 FY24.

• EBITDA margin for Q1 FY25 was 13.66%.

• Revenue from discontinued operations recognized at INR 59.90 crore due to recovery of interest on delayed energy payments.

• Annual cash surplus exceeded INR 2,500 million; order book as of June 30, 2024, was INR 91,006 million.

Outlook and guidance

• FY25 revenue guidance at INR 2,500 crore and FY26 at INR 3,500 crore, with EPS targets of INR 35 and INR 50, respectively.

• FY27 EPS expected at INR 75, excluding data center SPV contributions.

• Order inflows of INR 4,000–5,000 crore targeted for FY25 across segments.

• Management expects full recovery of overdue receivables based on legal opinions and regulatory orders.

• Data center expansion includes commissioning of Chennai DC in December 2024 and Kolkata DC in 2027, with 102 edge data centers planned over five years.