Small-cap electrical equipment firm engaged in the business of manufacturing AC generators and Electric motors surged by 4 percent in the day’s trade after it received an order worth USD 9.28 million from an international client.
With a market capitalization of Rs 5,799.10 crores, the shares of TD Power Systems Limited surged by 4 percent, trading at Rs 371.30 apiece on Tuesday’s afternoon market hours. It generated a return of 53 percent over the past year and 38.54 percent over the past six months.
What happened: According to TD Power Limited’s stock exchange filings, the firm disclosed that they have received a work order worth USD 9.28 million from a leading original manufacturer company based out of the USA, to provide gas turbine generators.
The provided generators will be primarily used in fracking wells in the US, for power supply and backup power for artificial intelligence server farms, and other applications. Delivery of these generators is scheduled to commence from January 2025 to August 2025.
Financials: Reviewing the financials of T.D Power Systems Limited on a year-on-year basis, the revenues rose by 14.7 percent from Rs 872 crores in FY23 to Rs 1,001 crores in FY24. In the same time frame, the net profits increased from Rs 97 crores to Rs 118 crores demonstrating a 21.6 percent increase.
As per the filing, The EBITDA of TD power systems rose by 22 percent from Rs 141.2 crores in FY23 to Rs 172.1 crores in FY24. The profit after tax ( PAT) also increased by 22 percent from Rs 96.8 crores to Rs 118.3 crores in the same time frame.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 16.78 percent and a return on capital employed (ROCE ) of 22.80 percent. The debt-to-equity ratio stood at nil for the same period.
The company specializes in manufacturing a diverse range of products, including generators for turbines, engines, and specialized applications. Additionally, they produce various types of motors such as Induction motors, Synchronous motors, and traction motors.
As of 31st March 2024, the company’s total order book amounted to Rs 1,189.5 crores. The sectoral order book breakdown consists of Rs 474.7 crores from export orders, Rs 265.5 crores from domestic orders, Rs 417.9 crores from railway orders, Rs 14.5 crores from spares and aftermarket orders, and Rs 16.8 crores from Turkey orders.
Shareholding pattern: As of March 2024, the firm’s ownership structure showed that promoters held 34.27 percent, the public held 20.53 percent, foreign institutional investors held 12.85 percent, and domestic institutional investors held 32.35 percent of the shares.
About the company: Incorporated in 1999 and headquartered in Bengaluru, TD Power Systems Limited is engaged in the manufacturing of AC generators and Electric motors for various applications. With over 25 years of experience, the company has established itself as a market leader in A.C generator manufacturing.
Written By Zahal.
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