Earnings Call Transcript of TD Power Systems: Analyst and Investors Call Q3 as well as 9M FY 20
Opening Remarks by Management
Our total income on a standalone basis for 9-months is Rs. 346 crore, an increase of 22% versus Rs. 283 crore for the same period last year. Profit after tax for 9-months is Rs. 9.24 crore versus a loss of Rs. 4.5 crore for the same period previous year. The Company had adopted the revised tax structure and has made tax provisions accordingly. Manufacturing revenues for 9 months is Rs. 328 crore versus Rs. 262 crore, an increase of 25%. Exports and deemed exports contributed 61% of manufacturing revenue. The total manufacturing order book including our Turkey operation and our railway business stands at Rs. 1,095 crore, out of which Rs. 290 crore is India manufacturing, Rs. 736 crore is the railway business and Rs. 69 crore is Turkey. Exports and deemed exports including Turkey but excluding the railway business is 74%.
Order inflow: Our total inflow for 9 months is as follows; including TDPS Turkey which is now clubbed together, in the future we will be clubbing our Turkey business with the manufacturing business. Our total order inflow is Rs. 419 crore for 9 months compared to Rs. 370 crore the previous year same period. Q3 order inflow for the current year is Rs. 186 crore versus Rs. 131 crore for Q3 of this year versus Q3 of last year. Project business for 9 months is Rs.10 crore versus Rs. 13 crore the same period last year. Our order book for the projects business stands at Rs. 35 crore.
Consolidated: Our total income is Rs. 375 crore versus Rs. 268 crore the same period last year, an increase of 40%. Profit after tax and other comprehensive income is Rs. 10.53 crore versus a loss of Rs. 12 crore last year. We continue to maintain a strong cash position of Rs. 152 crore.
Market situation and Guidance: This year, we have seen strong order inflows in all segments of the business from India as well as some exports. In particular we had seen heavy order inflows from the gas engine business export and steam turbine side domestic. We have seen the domestic market ordering in steel, waste heat recovery in cement primarily, distillery including ethanol business and paper and to a smaller extent we are seeing some business in sugar cogeneration.
We think that the domestic market has bottomed out and signs of consistent recovery are clear and emerging. For us, the hydro business is flat at the moment in terms of order inflows, but there are some big orders in the export market and we are waiting strongly for them and we are hopeful to secure a few of them. Our Turkey manufacturing business deserves special mention. We have almost 10 million order inflow and our factory in Turkey is running at full capacity. They have taken orders in geothermal, hydro and biomass. We hope to have consistent volumes in this market for 21-22, since the enquiry and order pipeline is very strong. We have secured breakthrough orders from a major US engine Company into TDPS India. We have received an order for 3 machines and we will then receive an order for 5 more machines, a total of 8 machines for different engine types. We will expect volumes to begin in 21-22 for this, since there is an 8 month qualification period after delivery of these machines, delivery of the prototypes is expected to be around May this year. Our traction line for railways is running at Rs. 8 crore per month, starting from this month, confirmation of volumes at this current run rate for 20-21 has already been received from the customer and they are going flat out.
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