TD Power Systems Ltd — Interim / Quarterly Report 2020

Aug 12, 2019

TD POWER SYSTEMS LIMITED June 2019

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Company Presentation

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1

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 4,221 generators, including generators exported to 73 countries, with aggregate output capacity of 30,680 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’20 Q1

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Particulars (Rs Millions)	FY 20 Q1	FY 19 Q1
Total Income (excluding excise duty)	931.53	750.44
EBITDA	52.14	(16.92)
Margins (%)	5.60%	(2.25%)
Depreciation	61.59	64.30
Interest	11.65	5.35
PBT	(21.09)	(86.57)
Tax	(7.68)	(7.85)
PAT	(13.41)	(78.72)
PAT after OCI	(19.43)	(79.49)

4

PENDING ORDER

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( Rs. Mn)

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12,000 10,625
10,315
10,000
8,000
6,000
4,000
2,000
309
-
Manufacturing Projects Business Total
June - 2019 - Rs Millions 10,315 309 10,625
Domestic 996 309 1,305
-
Exports 717 717
-
Deemed Export 1,124 1,124
-
Domestic - Railways 7,478 7,478
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5

REVENUE ANALYSIS

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( Rs. Mn)

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1,400
1,147 1,164
1,200
1,000
800
600
400
200
16
-
Manufacturing Projects Business TOTAL
FY 20 Q1 - Rs Millions 1,147 16 1,164
Domestic 601 16 618
Exports 420 0.37 421
-
Deemed Export 126 126
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• Prior to inter-segment and inter-company eliminations

6

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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.

• 4,221 generators supplied as of June 30, 2019 with an aggregate output capacity of over 30,680 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 Locomotive Engines Diesel Gas Diesel Up to 3 MW Up to 15 MW Up to 12MW 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 Q1 – Consol Levels (Rs. 1,147 Mn)

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601
420
126
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Key Segment Financials (Rs. Mn)

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5,000 4,729 10%
9%
4,500 4,252 9%
4,000 3,816 8% 8%
3,462 7%
3,500 7%
3,000 6%
6%
5%
2,500 5%
2,000 4%
1,500 1,147 3%
1,000 2%
500 352 245 229 373 1%
64
- 0%
FY16 FY17 FY18 FY19 FY20 Q1
Revenue EBITD EBITD Margin
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Segmental revenues without inter-segment & inter-company elimination. Segmental Revenue & EBITD 7 margins are on consol levels after adjusting income/expenses of wholly owned subsidiary.

Exports Deemed Export

Domestic

EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization

7

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 June 2019 (Rs. 10,315 Mn)

Top Ten Customer Revenue (%)

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8,000 7,478
7,000
6,000
5,000
4,000
3,000
2,000 996 1,124
717
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

8

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 June 30, 2019 stands at Rs. 309 Mn

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

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1,400 20%
1,248 8% -1%
1,200 4%
0.3% 0%
1,000
-20%
800 685
611 628
600 -40%
400
-60%
200 98
28 2 16 -80%
- -83. 9%
FY16 FY17 FY18 -6 FY19 FY20 Q1
(200) -14 -100%
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

9

FINANCIAL TRACK RECORD

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6,000
Segmental Revenues Consolidated (Rs Mn)
5,000
4,000
3,000
2,000
1,000
-
FY16 FY17 FY18 FY19 FY20 Q1
EPC 231 17 - - -
Project Business 1,248 685 611 628 16
Manufacturing 3,816 3,462 4,252 4,729 1,147
Manufacturing Project Business EPC
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Segmental revenues without inter-segment elimination

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

10

FINANCIAL TRACK RECORD

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500 Segmental EBITDA Consolidated (Rs Mn)
400
300
200
100
-
(100)
(200)
(300)
FY16 FY17 FY18 FY19 FY20 Q1
EPC (218) (22) (11) (16) (0)
Project Business 98 28 (6) 2 (14)
Manufacturing 352 245 229 373 64
Manufacturing Project Business EPC
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Segmental revenues without inter-segment elimination

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

11

P & L Snapshot

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P & L Snapshot
			Consolidated
Rs Mn	FY16	FY 17	FY 18	FY 19	Jun-19
Sales	5,068	3,799	4,349	4,590	895
EBITDA	67	82	84	272	16
Depreciation (incl. Amortization)	288	279	271	260	62
EBIT	(221)	(196)	(187)	12	(46)
Other Income	202	202	159	92	36
Interest and Finance Charges	50	41	67	28	12
PBT	(69)	(36)	(95)	75	(21)
Tax	23	8	49	43	(8)
Other Comprehensive Income		(2)	(2)	(3)	(6)
Restated PAT	(92)	(42)	(142)	29	(19)
Minority Interest	0	0	0	0	0
Restated PAT after minority interest	(92)	(42)	(142)	29	(19)
EBITDA margin (%)	1.32%	2.17%	1.92%	5.9%	1.8%
PAT margin (%)	(1.8%)	(1.1%)	(3.3%)	0.6%	(2.2%)

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

12

BALANCE SHEET SNAPSHOT

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	Consolidated
	As on
Rs Mn	Mar-16 Mar-17 Mar-18 Mar-19 Jun-19
Source of Funds	5,162 5,271 5,274 4,845 4,890
Net Worth	4,733 4,705 4,494 4,155 4,127
Minority Interest
Borrowings	276 453 686 614 652
Deferred Tax Liability	153 112 94 76 111
Uses of Funds	5,162 5,271 5,274 4,845 4,890
Gross Block	3,681 3,691 3,732 3,826 3,843
Less :- Depreciation	1,136 1,382 1,634 1,865 1,925
Net Block	2,545 2,309 2,098 1,961 1,919
CWIP	7 7 6 15 8
Investments	100 100
Technical Knowhow	37 25 35 17 16
Net Working Capital incl. cash	2,574 2,931 3,135 2,752 2,848
Current Assets	5,340 5,112 4,946 5,388 5,304
Inventories	881 800 817 1,126 1,536
Sundry Debtors	1,552 1,605 1,851 2,287 1,532
Cash and Bank Balances	2,258 2,146 1,684 1,289 1,488
Loans & Advances	648 560 594 686 748
Current Liabilities	2,567 2,106 1,742 2,569 2,388
Provisions	200 74 68 67 68

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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2.7% Promoters
2.4%
16.0% Mutual Funds
Foreign Institutional
2.7%
Investors
Individuals
58.5%
17.7%
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 9-Aug-19
TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods)
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As on 30[th] June 2019

14

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THANK YOU

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