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TD Power Systems hosted a conference call on Feb 3, 2017. In the conference call the company was represented by Nikhil Kumar, MD and Prabakar, CFO of the company.
Key takeaways of the call
Consolidated order backlog as end of Dec 31, 2017 is Rs 370 crore of which manufacturing is Rs 300 crore and the project order book is Rs 70 crore. Of the manufacturing order backlog of Rs 300.3 crore about Rs 85 crore was domestic, export is Rs 111.4 crore and deemed export is Rs 103.9 crore.
Manufacturing order inflow for 9mFY17 stood at Rs 259 crore as against 250 crore in corresponding previous period.
The company expects to close FY17 with a manufacturing revenue of Rs 355 crore with EBITDA margin in the range of 8-9%. Similarly the company expect to close FY17 with a project revenue of about Rs 65-70 crore with about 4-5% of EBITDA margin. So overall the company expects a revenue of Rs 420-425 crore for FY17 as against a revenue of about Rs 473 crore in FY16.
However the company expects its order inflow for FY17 will be 5% higher than last year OI numbers.
Confident of crossing last year OI numbers in case of manufacturing business. Last year mfg order inflow was Rs 350 crore and the company having bagged orders worth Rs 259 crore in 9mFY17 is confident of closing the year with significantly higher order inflow numbers over last fiscal.
Domestic market order inflow shrunk in 9mFY17 but the company has not lost any market share. The order visibility continues to be weak. However there are very strong traction in hydro segment with its hydro order book is at all time high. On gas engine side the company has bagged a bulk order of 20 machines in current fiscal in Germany but that is difficult to repeat in next fiscal even though order for one or two machines keep coming. Steam turbine the company is making strong inroad overseas with approval from lot of consultants and EPC players especially in waste to energy segment. US market – one of the player in that market has closed operation suddenly leaving the customers stranded and the company is filling the gap with the company getting lot of enquiries and some of which already got converted into orders. In railways the company is executing the overseas order on hand.
Q3FY17 was a weak quarter in terms of manufacturing and billing as dispatches were back ended in Q4FY17.
Profit for the quarter and 9mFY17 is hit by forex loss of Rs 2.5 crore and Rs 4 crore respectively due to rupee devaluation.
Cash (and cash equivalents) including customer advances was Rs 228 crore.
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