TD Power Systems - Expects To Benefit From Pick-Up In Industrial Capex, Rising Demand: ICICI Securities

TD Power Systems - Expects To Benefit From Pick-Up In Industrial Capex, Rising Demand: ICICI Securities

<div class="paragraphs"><p>TD Power Systems Ltd.'s plant. (Source: Company website)</p></div>
TD Power Systems Ltd.'s plant. (Source: Company website)

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ICICI Securities Report

We recently visited TD Power Systems Ltd.’s plant in Bengaluru and interacted with its senior management. Key takeaways from the interaction include:

  1. guided revenue of Rs 9 billion for FY23, which is ~13% YoY growth over FY22,

  2. strong enquiry pipeline in domestic/international markets driven by capex/increased investment in waste-to-energy, biomass and garbage burning plants,

  3. TD Power Systems expects Ebitda margin to be higher at 17-18% (FY22 - 11.5%, Q1 FY23 - 13.6%), supported by operating leverage and operational efficiencies,

  4. robust opportunities in motor business (led by railways capex) which may surpass generator business in medium to long term,

  5. no increase in headcount despite a sharp increase in order backlog; focusing on consistent investment in automation and robotics and,

  6. TD Power Systems expects strong service income from the fixing of wind generators and its 1,000 unit strong installed base that is more than 12 years old.

Click on the attachment to read the full report:

ICICI Securities TD Power Visit Note.pdf


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