TD Power Systems Ltd — Annual Report 2020

Jun 4, 2020

TD POWER SYSTEMS LIMITED March 2020

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Company Presentation

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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 4,496 generators, including generators exported to 73 countries, with aggregate output capacity of 32,632 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

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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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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

2 Pole Factory

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FINANCIALS: FY 20

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Particulars (Rs Millions)	FY 20	FY 19
Total Income including exceptional income	5,421	4,682
EBITDA including exceptional income	604	363
Margins (%)	11%	8%
Depreciation	222	260
Interest	55	28
PBT	328	75
Tax	28	43
PAT	299	32
PAT after OCI	288	29

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PENDING ORDER

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11,288
12,000 11,070
10,000
8,000
6,000
4,000
2,000
217
-
Manufacturing Projects Business Total
March 20 - Rs Millions 11,070 217 11,288
Domestic 1,042 217 1,259
-
Exports 1,112 1,112
-
Deemed Export 908 908
-
Domestic - Railways 7,151 7,151
-
Turkey 857 857
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REVENUE ANALYSIS

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	- 1,000 2,000 3,000 4,000 5,000 6,000 7,000	Manufacturing Projects Business TOTAL 5,647 316 5,964 2,955 269 3,225 1,621 47 1,668 1,072 - 1,072 5,647 316 5,964 *	Manufacturing Projects Business TOTAL 5,647 316 5,964 2,955 269 3,225 1,621 47 1,668 1,072 - 1,072 5,647 316 5,964 *	Manufacturing Projects Business TOTAL 5,647 316 5,964 2,955 269 3,225 1,621 47 1,668 1,072 - 1,072 5,647 316 5,964 *
		Manufacturing	Projects Business	TOTAL
	FY 20 - Rs Millions	5,647	316	5,964 *
	Domestic	2,955	269	3,225
	Exports	1,621	47	1,668
	Deemed Export	1,072	-	1,072

• Prior to inter-segment and inter-company eliminations

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BUSINESS SEGMENT : MANUFACTURING

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.

• 4,496 generators supplied as of March 31, 2020 with an aggregate output capacity of over 32,632 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 20 – Consol Levels (Rs. 5,647 Mn)

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2,955
1,621
1,072
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Key Segment Financials (Rs Mn)

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6,000 5,647 10%
9%
9%
5,000 4,729 8% 8% 8%
7% 4,252
4,000 3,816 7%
3,462
6%
5%
3,000 5%
4%
2,000 3%
2%
1,000 352 245 229 373 471 1%
- 0%
FY16 FY17 FY18 FY19 FY20
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. EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

Deemed Export

Domestic

Exports

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BUSINESS SEGMENT : MANUFACTURING

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Product-wise sales (%) Key end user industries (%)
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100% 2% 6% 0%2% 5%0% 0%
90% 13% 19% 14% 14%
80% 7% 28% 5% 6% 8% Others
70% 14% Traction
60% 29% 7% 29% Gas
38%
50% 18% Diesel
40% Hydro
30% 61% Steam
49% 49%
20% 41% 37%
10%
0%
FY16 FY17 FY18 FY19 FY20
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100%
90% 20%
30% 32% 32% 30%
80%
Others
70% 19%
60% 13% 2% 14% 14% Gas
1% 28% 0% 0% Metal
50% 12%
Hydro
40% 29% 4% 38% 10% 29% Sugar
30% 0%
20% 18% 18% 9% 32% 4%0% TractionPower
10% 10% 2% 23%
10% 8% 11%
0%
FY16 FY17 FY18 FY19 FY20
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• *Other units include generators for transformer motor testing applications not reflected in charts above

Pending Order March 2020 (Rs. 11,070 Mn)

• Others include Chemical, Food, Paper, Textile, Process, Wind, Distillery, Fertilizer etc

Top Ten Customer Revenue (%)

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8,000 7,151
7,000
6,000
5,000
4,000
3,000
2,000 1,042 1,112 908 857
1,000
-
Domestic Exports Deemed Export Domestic - Railways Turkey
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78% 78% 77%
78%
59%
FY16 FY17 FY18 FY19 FY20
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Product portfolio spread across diverse and loyal customer base

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BUSINESS SEGMENT : PROJECT BUSINESS

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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, 2020 stands at Rs. 217 Mn

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

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1,400 10%
1,248
8%
1,200 8%
1,000
6%
800
685
4% 611 628 4%
600
316 2%
400
-1%
0.3%
0%
200 98
28 2
- -2% -2%
FY16 FY17 FY18 -6 FY19 FY20
-7
(200) -4%
Revenue EBITD EBITD Margin
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Segmental revenues without inter-segment elimination, including Japan subsidiary

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

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Established track record of executing power projects
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FINANCIAL TRACK RECORD

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	- 1,000 2,000 3,000 4,000 5,000 6,000 7,000
				Segmental Revenues Consolidated (Rs Mn)
		FY16		FY17	FY18	FY19	FY20
	EPC	231		17	-	-	-
	Project Business	1,248		685	611	628	316
	Manufacturing	3,816		3,462	4,252	4,729	5,647
		Manufacturing Project Business EPC

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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600 Segmental EBITDA Consolidated (Rs Mn)
500
400
300
200
100
-
(100)
(200)
(300)
FY16 FY17 FY18 FY19 FY20
EPC (218) (22) (11) (16) (13)
Project Business 98 28 (6) 2 (7)
Manufacturing 352 245 229 373 471
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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P&L SNAPSHOT

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Consolidated

Rs Mn	FY16	FY 17	FY 18	FY 19	FY 20
Sales	5,068	3,799	4,349	4,590	5,149
EBITDA	67	82	84	272	332
Depreciation (incl. Amortization)	288	279	271	260	222
EBIT	(221)	(196)	(187)	12	110
Other Income including Exceptional items	202	202	159	92	272
Interest and Finance Charges	50	41	67	28	55
PBT	(69)	(36)	(95)	75	328
Tax	23	8	49	43	28
Other Comprehensive Income		(2)	(2)	(3)	(11)
Restated PAT	(92)	(42)	(142)	29	289
Restated PAT	(92)	(42)	(142)	29	289
EBITDA margin (%)	1.32%	2.17%	1.92%	5.9%	6.5%
PAT margin (%)	(-1.8%)	(1.1%)	(3.3%)	0.6%	5.6%

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

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BALANCE SHEET SNAPSHOT

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BALANCE SHEET	SNAPSHOT
	Consolidated
	As on
Rs Mn	Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Source of Funds	5,162 5,271 5,274 4,845 4,992
Net Worth	4,733 4,705 4,494 4,155 4,250
Minority Interest
Borrowings	276 453 686 614 677
Deferred Tax Liability	153 112 94 76 65
Uses of Funds	5,162 5,271 5,274 4,845 4,992
Gross Block	3,681 3,691 3,732 3,826 3,847
Less :- Depreciation	1,136 1,382 1,634 1,865 2,065
Net Block	2,545 2,309 2,098 1,961 1,782
CWIP	7 7 6 15 6
Investments	100 199
Technical Knowhow	37 25 35 17 19
Net Working Capital incl. cash	2,574 2,931 3,135 2,752 2,985
Current Assets	5,340 5,112 4,946 5,388 5,568
Inventories	881 800 817 1,126 1,444
Sundry Debtors	1,552 1,605 1,851 2,287 1,728
Cash and Bank Balances	2,258 2,146 1,684 1,289 1,582
Loans & Advances	648 560 594 686 813
Current Liabilities	2,567 2,106 1,742 2,569 2,506
Provisions	200 74 68 67 77

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

SHAREHOLDING STRUCTURE

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Shareholding %

TDPS Stock Price Movement

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250
4.3% Promoters 230
1.7%
210
15.4% Mutual Funds 190
170
150
2.7% Foreign Institutional 130
Investors 110
Individuals 90
58.5%
70
17.4% 50
Corporate Bodies 30
8-Sep-11 3-June-20
Others
TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods)
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As on 31[st ] March 2020

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THANK YOU

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