TD Power Systems Ltd — Annual Report 2019

May 23, 2019

TD POWER SYSTEMS LIMITED March 2019

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Company Presentation

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1
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BUSINESS STRUCTURE

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Manufacturing
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Manufacturer of AC Generators

(Up to 200 MW)

• Diversified portfolio customized for a wide range of turbines (steam, gas, hydro and wind) and engines (diesel and gas)

• Since inception, manufactured 4,145 generators, including generators exported to 73 countries, with aggregate output capacity of 29,185 MW

• Three manufacturing facilities in Bangalore, backed by captive power/water supplies and a well-developed ancillary vendor network

• Sales through OEM’s, which are turbine and engine manufacturers; strong engineering consultant relationships allow deep involvement in project tendering

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Projects
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Projects business

(Turbine Generator Island projects of output capacity up to 52 MW)

• Steam turbine power plant projects combining TDPS’ generators with Japanese turbines

• Completed 110 TG island projects & 14 BTG projects with aggregate output capacity of 3,243 MW

• Projects executed in India, Uganda, Kenya, Zambia and the Philippines

2

STATE OF THE ART MANUFACTURING FACILITIES AND COST EFFICIENT PRODUCTION

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Manufacturing units with advanced machines help in delivering competitively priced products with the highest quality standards

ISO 9001:2008 compliant manufacturing units in Bangalore

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Unit I Factory

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Unit II Factory

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2 Pole Factory

Unit I - 157,624 sq ft

Core building, Coil making, Winding & Machining Impregnation and curing Balancing Final assembly and testing Material Handling & General Facilities Power House R&D Centre Quality lab and instruments

Unit II – 219,756 sq ft

Core building, Coil making, Winding & Machining Impregnation and curing Balancing Final assembly and testing Material Handling & General Facilities Power House R&D Centre Quality lab and instruments

2 Pole Factory – 78,449 sq ft

Core building, Coil making, & Winding Impregnation and curing Final assembly and testing Material Handling & General Facilities Power House (Common with Unit 2) R&D Centre (Common with Unit 2) Quality lab (Common with Unit 2) and instruments

3

FINANCIALS : FY’19

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Particulars (Rs Millions)	FY 19	FY 18
Total Income (excluding excise duty)	4,681.81	4,536.49
EBITDA	363.22	242.45
Margins (%)	7.76%	5.34%
Depreciation	259.90	271.13
Interest	28.43	66.56
PBT	74.89	(95.24)
Tax	42.90	49.01
PAT	31.99	(144.25)
PAT after OCI	29.03	(141.25)

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PENDING ORDER

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(Rs Mn)
12,000
10,304 10,453
10,000
8,000
6,000
4,000
2,000
148
-
Manufacturing Projects Business Total
March - 2019 - Rs Millions 10,304 148 10,453
Domestic 905 148 1,052
-
Exports 819 819
-
Deemed Export 1,070 1,070
-
Domestic - Railways 7,511 7,511
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REVENUE ANALYSIS

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(Rs Mn)
6,000
5,357
4,729
5,000
4,000
3,000
2,000
1,000 628
-
Manufacturing Projects Business TOTAL
FY19 - Rs Millions 4,729 628 5,357
Domestic 2,368 550 2,920
Exports 1,418 77.20 1,495
Deemed Export 943 - 943
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• Prior to inter-segment and inter-company eliminations

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BUSINESS SEGMENT: MANUFACTURING

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Business highlights

AC Generators for various applications

• One of the leading manufacturers of AC Generators in the range of 1 MW up to 200 MW for prime movers such as steam & gas, and upto 52 MW for hydro, wind turbines, diesel and gas engines.

• 4,145 generators supplied as of March 31, 2019 with an aggregate output capacity of over 30,138 MW in 73 Countries.

• Three manufacturing facilities in Bangalore equipped with the latest technology.

Turbines Steam Gas Hydro Wind Up to 200 MW Up to 20 Mw Horizontal - Up to 15 MW 3 MW Vertical – Up to 35 MW Engines Locomotive Diesel Gas Diesel Up to 15 MW Up to 12MW Up to 3 MW Special Applications Other Generators For Motor /transformer testing Geo Thermal / Solar application Customized

• Our generators have been approved by leading engineering consultants.

Revenue Analysis FY 19 – Consol Levels (Rs. 4,729 Mn)

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2,368
1,418
943
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Key Segment Financials (Rs Mn)

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5,000 4,729 14%
13%
4,500 4,252
12%
4,000 3,768 3,816
3,462
3,500 9% 10%
3,000 8% 8%
2,500 7%
5% 6%
2,000
1,500 4%
1,000
500 482 352 245 229 373 2%
- 0%
FY15 FY16 FY17 FY18 FY19
Revenue EBITD EBITD Margin
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Segmental revenues without inter-segment & inter-company elimination. Segmental Revenue & EBITD margins are on consol levels after adjusting income/expenses of wholly owned subsidiary.

Deemed Export

Domestic

Exports

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EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

BUSINESS SEGMENT : MANUFACTURING

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Product-wise sales (%) Key end user industries (%)

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100% 3% 2% 6% 0%2% 5%0%
90% 11% 13% 19% 14%
80% 9% 7% 28% 5% 6% Others
70% 14%
60% 29% 29% 7% Traction
38% Gas
50% 18%
40% Diesel
30% 61% Hydro
49% 49%
20% 41% 37% Steam
10%
0%
FY15 FY16 FY17 FY18 FY19
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*Other units include generators for transformer motor testing applications not reflected in charts above

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100%
90% 21% 20%
30% 32% 32%
80%
70% 11% 19% Others
60% 2% 13% 2% 14% Gas
50% 29% 1% 28% 12%0% MetalHydro
40% 29% 4% 38% 10% Sugar
30% 11% 18% 0% Traction
20% 18% 9% 32% Power
10% 26% 10% 2%
10% 8% 11%
0%
FY15 FY16 FY17 FY18 FY19
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• Others include Chemical, Food, Paper, Textile, Process, Wind, Distillery, Fertilizer etc

Pending Order March 2019 (Rs. 10,304 Mn)

Top Ten Customer Revenue (%)

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8,000 7,511
7,000
6,000
5,000
4,000
3,000
2,000 905 819 1,070
1,000
-
Domestic Exports
Deemed Export Domestic - Railways
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78%
78% 78%
67%
59%
FY15 FY16 FY17 FY18 FY19
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Product portfolio spread across diverse and loyal customer base

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BUSINESS SEGMENT: PROJECT BUSINESS

Business highlights

• TG Projects for steam turbine power plants with output capacity of up to 52 MW done under TD Power Systems Ltd

• Executed 124 projects aggregating 3,243 MW in India and abroad (110 TG island projects and 14 BTG island projects)

• Experienced teams with established track record and reputation for efficient project management

• Power Projects order book as on March 31, 2019 stands at Rs. 445 Mn

TG Projects including Japan WOS - Key Segment Financials (Rs Mn)

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1,400 9%
1,248
8% 8%
1,200
7%
991
1,000 6%
5%
4%
800 5%
685
611 628 4%
600
3%
400 2%
1%
200 98
50 28 20.3% 0%
- -1% -1%
FY15 FY16 FY17 FY18 -6 FY19
(200) -2%
Revenue EBITD EBITD Margin
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Segmental revenues without inter-segment elimination, including Japan subsidiary

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

Established track record of executing power projects

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FINANCIAL TRACK RECORD

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7,000
Segmental Revenues Consolidated (Rs Mn)
6,000
5,000
4,000
3,000
2,000
1,000
-
FY15 FY16 FY17 FY18 FY19
EPC 1,577 231 17 - -
Project Business 991 1,248 685 611 628
Manufacturing 3,768 3,816 3,462 4,252 4,729
Manufacturing Project Business EPC
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Segmental revenues without inter-segment elimination

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income

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FINANCIAL TRACK RECORD

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	(300) (200) (100) - 100 200 300 400 500 600
			Segmental EBITDA Consolidated (Rs Mn)
			FY15	FY16	FY17		FY18		FY19
	EPC		(240)	(218)	(22)		(11)		(16)
	Project Business		50	98	28		(6)		2
	Manufacturing		482	352	245		229		373
			Manufacturing Project Business EPC

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income

Segmental revenues without inter-segment elimination

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P & L SNAPSHOT

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Consolidated

Rs Mn	FY15	FY16	FY 17	FY 18	FY 19
Sales	5.974	5,068	3,799	4,349	4,590
EBITDA	141	67	82	84	272
Depreciation (incl. Amortization)	288	288	279	271	260
EBIT	(147)	(221)	(196)	(187)	12
Other Income	245	202	202	159	92
Interest and Finance Charges	40	50	41	67	28
PBT	59	(69)	(36)	(95)	75
Tax	68	23	8	49	43
Other Comprehensive Income			(2)	(2)	(3)
Restated PAT	(9)	(92)	(42)	(142)	29
Minority Interest	0	0	0	0	0
Restated PAT after minority interest	(9)	(92)	(42)	(142)	29
EBITDA margin (%)	2.40%	1.32%	2.17%	1.92%	5.9%
PAT margin (%)	(-0.2%)	(-1.8%)	(1.1%)	(3.3%)	0.6%

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income

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BALANCE SHEET SNAPSHOT

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	Consolidated
	As on
Rs Mn	Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
Source of Funds	5,691 5,162 5,271 5,274 4,845
Net Worth	4,940 4,733 4,705 4,494 4,155
Minority Interest
Borrowings	574 276 453 686 614
Deferred Tax Liability	177 153 112 94 76
Uses of Funds	5,691 5,162 5,271 5,274 4,845
Gross Block	3,542 3,681 3,691 3,732 3,826
Less :- Depreciation	876 1,136 1,382 1,634 1,865
Net Block	2,667 2,545 2,309 2,098 1,961
CWIP	- 7 7 6 15
Investments	100
Technical Knowhow	49 37 25 35 17
Net Working Capital incl. cash	2,975 2,574 2,931 3,135 2,752
Current Assets	6,245 5,340 5,112 4,946 5,388
Inventories	760 881 800 817 1,126
Sundry Debtors	1,551 1,552 1,605 1,851 2,287
Cash and Bank Balances	2,721 2,258 2,146 1,684 1,289
Loans & Advances	1.212 648 560 594 686
Current Liabilities	3,095 2,567 2,106 1,742 2,569
Provisions	175 200 74 68 67

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization and Other Income

13

SHAREHOLDING STRUCTURE

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Shareholding %

TDPS Stock Price Movement

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3.0% Promoters
2.6%
15.6% Mutual Funds
Foreign Institutional
2.7%
Investors
57.9% Individuals
18.3%
Corporate Bodies
Others
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250
230
210
190
170
150
130
110
90
70
50
30
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8-Sep-11 22-May-19
TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods)
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As on 31[st] March 2019

14

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THANK YOU

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