TD Power System is in focus after the company posted a strong set of Q2 results. Their margins have expanded this quarter and profit has also gone up.
The year on year (YoY) revenues for the company were up 19.3 percent at Rs 126 crore versus Rs 105.6 core, The operating profits to were up to Rs 8.95 from rs 1.91 crore and margins came in at 7.1 percent compared to 1.91 percent YoY.
Net profit was up 349 percent at Rs 4.94 crore versus Rs 1.1 crore for the same quarter last fiscal.
Throwing more light on the earnings and outlook going forward, Nikhil Kumar, MD, TD Power System said there is significant traction coming in from their export business while the domestic market remains fairly weak.
The generator segment has a strong orderbook for H2, so that segment will do better, said kumar.
He said, the guidance on revenues from the generator business of around Rs 300-400 crore on the manufacturing side, and 7-9 percent EBITDA margins for FY18 is achievable.
He said the cash on the books currently stands at Rs 188 crore from Rs 220 crore earlier and it is down because part of it has been used for working capital. The company currently has no plans of what to do with cash but once earnings for them improve and they generate more free cash flows, they would look at returning that to shareholders in some form.
He also clarified the positives from the big order won from railways will only start accruing from FY21 and for FY19 and FY20 they are confident of seeing growth from their other businesses.
TD Power Systems is engaged in manufacturing of alternating current (AC) generators and electric motors. The company's primary segments consist of the manufacturing business and project business. Its secondary segments are based on geographical location of activities, which include India and Japan.
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