Techno Electric Q1 Results Review - Robust Performance; Downgrade To 'Add': ICICI Securities

ICICI Securities Report

Techno Electric and Engineering Company Ltd. reported a strong set of numbers with revenue/Ebitda/profit after tax up 138% / 110% / 146% YoY to Rs 3.5 billion / 475 million / 539 million.

Along with the strong operating performance (on a low base), net profit was further boosted by sharp increase in other income and lower tax rate during Q1 FY24.

Techno Electric carries a strong order backlog of Rs 38 billion (3.3 times trailing twelve months sales) along with level-one position in Rs 36.5 billion worth of advanced metering infrastructure and transmission tenders, which gives strong revenue visibility.

Management has guided for revenue of Rs 15-16 billion with Ebitda margin of 13% in FY24, which we believe is achievable given the robust order backlog and stable commodity prices.

Data centre construction is progressing well and expected to complete by December 2023. Downgrade to 'Add' with a revised target price of Rs 520.

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