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Techno Electric & Engineering
Company hosted a conference call on Aug 16, 2023. In the conference call the
company was represented by PP Gupta, CMD.
Key takeaways of the call
Order backlog as end of Jun 30, 2023
was Rs 3840 crore. Additionally the company
is placed L1 for orders worth Rs 3650 crore. The L1 order book include 2 AMI
orders worth Rs 2150 crore and balance in transmission orders. Of the
T&D L1 orders worth about Rs 1500 crore, it has already received orders
worth Rs 350 crore recently and expect orders worth Rs 500 crore before Sep
2023.
Confident of closing the current
fiscal with an order backlog of Rs 6000 crore with the company hopeful of
bagging further orders of Rs 2000 crore.
Expect the growth momentum has begun
and it will make up the subdued performance of last 3 years.
Energy demand is going to growth in
double digit in last few years. So GOI proposes thermal projects of 32-40 GW in
the thermal sector (largely brown field projects) in power sector. The bids already opened for T&D orders
worth about 40000 crore. The substation component out of T&D projects is
also about 25-30% higher. FGD Segment is
subdued.
The company is already executing 2.5
lakh meters AMI project in the state of J&K. It is L1 for two projects with installation
of 20 lakh meters in the states of J&K and Jharkhand.
The company expects orders worth Rs
2000 crore in AMI segment every year for next few years. Hope to get 1000-1500
crore of T&D orders every year for next 3-4 years as the T&D pipeline is strong.
Chennai Data Centre (CDC) – The Civil and Structural work will complete in
another 2-3 weeks and the electro mechanical work in another 6 months. The unseasonal rains and labour availability
issues has pushed further the commissioning date of Phase I and now the Phase I
is expected to commission by end of Dec 2023/Q4FY24. The company continue to look for strategic
investor for CDC and one such investor is doing due diligence process currently.
Since AMI and DC subsidiaries are not
yet operational and thus there is ambiguity at consolidated financials. The
costs are taken at cost or out of pocket expenses with no revenue impacting
consolidated profitability. So
standalone financials is better reflective of financial position of the
company.
EBITDA margin of 3rd party
EPC business will be about 13% in current fiscal.
The difference between consol and
standalone about 95% is AMI and 5% is DC.
Expect standalone revenue of Rs
380-400 crore per quarter for balance quarters of current fiscal.
The company has recognized revenue of
about Rs 50 crore from AMI in Q1FY24 and hopeful of recognising revenue of Rs
500 crore from this vertical in FY24.
The company expect Rs 350 crore of
revenue from the 2 new AMI orders.
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