Shares of this small-cap company, which manufactures AC generators and electric motors, jumped by an impressive 6.7 percent to reach Rs.434.15 per share during Tuesday’s trading session. This surge followed the management’s revision of the topline guidance for FY25, indicating a 27 percent increase in revenue compared to the previous year.
Share Price Movement
During Tuesday’s trading session, TD Power Systems Ltd’s share price reached an intra-day high of Rs.442.00 per share, rising 6.7 percent from its previous close of Rs.414.35 apiece. In the past five years, the stock has provided returns of over 1,400 percent.
What Happened
The rise in TD Power Systems’ stock price followed the company management’s announcement during a conference call on November 5, where they updated the topline revenue guidance.
The management expressed confidence in the company’s revenue growth, projecting a revised guidance of Rs.1,250-Rs.1,275 crore for FY25-26, representing an increase of 25-27 percent from the previous year. Additionally, margin growth is expected to outpace sales growth by approximately 2-3 percent.
In the first half of the fiscal year, the order inflow from direct and deemed exports reached Rs.4.78 billion, more than double the Rs.2.36 billion recorded last year, with this segment constituting 73 percent of the total order inflow.
Global Installation of Generators
TD Power Systems Ltd has made significant strides in its global installations, with a total of 6,690 generators deployed across various regions. The distribution includes 245 generators in North America, 45 in Central America, 53 in South America, 942 in Europe (with Hungary being the newest addition), 4,963 in Asia, 280 in Africa, and 162 in Oceania.
Financial Performance
For the quarter ending September 2024, the company reported operational revenue of Rs.306 crore, reflecting an 11 percent increase from Rs.274 crore in Q1 FY24. Net profits grew to Rs.41 crore, representing a 24 percent rise from Rs.33 crore during the same period.
About the Company
TD Power Systems Limited is a leading manufacturer of AC generators and electric motors, serving sectors like thermal power, hydroelectricity, and renewable energy. The company offers a range of products, including synchronous and induction generators, steam turbines, and gas engines.
Written by – Siddesh S Raskar
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