TD Power Systems - Strong Momentum in Core Business Persists; Result Update Q2FY15 :: Edelweiss PDF link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

TD Power Systems (TDPS) reported stellar 70% revenue growth for Q2FY15 beating our 25% growth estimate led by strong growth across segments. Manufacturing revenues spurted 34% YoY (including shipment of 67MW generator) and are expected to remain strong in H2FY15 too. EPC business however, extended losses. Key positive during the quarter was the 48% jump in order intake in the manufacturing segment to INR1.2bn. Robust exports market was driven by hydro, gas engines and steam turbine segments. Management reiterated its guidance of INR3.8-4bn revenues with 15-16% margins in manufacturing, INR1bn revenues in TG Island and INR1.5bn revenues with 5-6% margins in the EPC business. We remain upbeat on TDPS’s strong scalability potential via global OEM additions.

Robust revenues; core business margins set to scale back

TDPS reported strong 70% YoY growth, led by 34% and 56% YoY growth in manufacturing and project businesses, respectively. The EPC segment witnessed 580% surge albeit on a very small base. Manufacturing margins fell by 350bps mainly dented by negative operating leverage. Management indicated margins would scale back to normal levels of ~16% in H2FY15.

Manufacturing order intake sustains momentum

The manufacturing segment logged robust inflow at INR1.20bn. Demand was majorly driven by the exports market led by hydro, gas engines and steam turbine segments. Manufacturing order inflow is expected to remain strong in H2FY15 as well. Current Order backlog stands at INR6.1bn (down 9% YoY) with manufacturing business making two-thirds of it.

LINK

https://www.edelweiss.in/research/TD-Power-Systems--Strong-Momentum-in-Core-Business-Persists;-Result-Update-Q2FY15/27481.html