TD Power Systems zooms 87% in 3 weeks on strong outlook, hits 3-year high

The management said we are seeing very strong demand from export markets, as well as a very significant pickup of order booking and sales in the domestic market

Shares of TD Power Systems (TDPS) were locked in the upper circuit of 20 per cent at Rs 349.40, hitting a three-year high on the BSE in Thursday's session amid expectations of strong earnings growth going forward. The stock was trading at its highest level since May 2015. It had hit a record high of Rs 479 on December 30, 2014.

The trading volumes on the counter more-than-doubled with a combined 958,054 equity shares having changed hands on the NSE and BSE so far. There were a combined pending buy orders for 206,916 shares, the exchanges data shows.

In the past three weeks, the stock has zoomed 87 per cent after the company reported robust earnings, with profit after tax (PAT) of Rs 10.40 crore for the quarter ended June 2021 (Q1FY22), against a loss of Rs 9.8 crore in the previous year quarter. Total income of the company during the quarter more-than-doubled to Rs 167 crore from Rs 76 crore in Q1FY21.

The company had a strong order book position of Rs 1,078 crore as on June 30, 2021. It has supplied 4,911 generators as of Q1FY22 with an aggregate output capacity of over 35,536 MW in 80 countries.

TDPS is one of the leading manufacturers of AC Generators in the world with products in the output range of 1 MW to 200 MW for prime movers, such as steam turbines, gas turbines, hydro turbines, diesel engines, gas and wind turbines The company also manufacture special application generators for geothermal and solar thermal applications.

The company has announced significant upward guidance in the top line and expects manufacturing sales to be in the region of Rs 650 crore to Rs 660 crore for TDPS India compared to Rs 480 crore achieved last year.

The management said it is seeing very strong demand from export markets, as well as, a very significant pickup of order booking and sales in the domestic market. “In the overseas market, we are seeing a huge increase in the gas engine segment as well as in the steam turbine segment. The hydro market has also picked up and we are seeing a big uptake in the executable orders for this financial year,” Nikhil Kumar, managing director of TDPS said.

“We are now reaching that stage of the year where the majority of the fresh order booking will go into next year’s execution. The domestic market is also picking up in all sectors, cement, steel, sugar cogeneration, distilleries, waste heat recovery and garbage burning plants. There is a lot of momentum in the market, and I think we are finally seeing a strong revival of the long-awaited CAPEX cycles,” Kumar added.