TD Power Systems Ltd — Interim / Quarterly Report 2021

Nov 10, 2020

TD POWER SYSTEMS LIMITED September 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 4,653 generators, including generators exported to 73 countries, with aggregate output capacity of 33,592 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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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

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FINANCIALS : FY 21 H1

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Particulars (Rs Millions)	Sept’20	Sept’19
Total Income including exceptional income	2,609	2,376
EBITDA including exceptional income	270	196
Margins (%)	10%	8%
Depreciation	107	121
Interest	32	23
PBT	131	52
Tax	43	11
PAT	88	41
PAT after OCI	88	41

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PENDING ORDER

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12,000 11,057
10,795
10,000
8,000
6,000
4,000
2,000
261
-
Manufacturing Projects Business Total
Sept 20 - Rs Millions 10,795 261 11,057
Domestic 1,094 261 1,355
-
Exports 1,025 1,025
Deemed Export 753 - 753
-
Domestic - Railways 7,105 7,105
Turkey 818 - 818
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REVENUE ANALYSIS

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3,500
2,950 2,998
3,000
2,500
2,000
1,500
1,000
500
48
-
Manufacturing Projects Business TOTAL
FY 21 H1 - Rs Millions 2,950 48 2,998
Domestic 732 45 1,718
Exports 820 3 823
Deemed Export 459 - 459
Subsidaries 939 - 939
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• 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.

• 4,653 generators supplied as of September 30, 2020 with an aggregate output capacity of over 33,722 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 21 H1 – Consol Levels (Rs. 2,950 Mn)

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Manufacturing
1,000 939
900 820
800 732
700
600
500 459
400
300
200
100
-
Domestic Exports Deemed Export Subsidaries
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Key Segment Financials (Rs Mn)

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6,000 5,647 10%
8% 9% 9%
5,000 4,729
8% 8%
7% 4,252
7%
4,000
3,462
6%
5% 2,950
3,000 5%
4%
2,000
3%
2%
1,000 245 229 373 471 271 1%
- 0%
FY17 FY18 FY19 FY20 FY21H1
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

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BUSINESS SEGMENT: MANUFACTURING

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% 38% 29% Gas
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 September 2020 (Rs. 10,795 Mn)

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

Top Ten Customer Revenue (%)

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8,000 7,105
7,000
6,000
5,000
4,000
3,000
2,000 1,094 1,025 753 818
1,000
-
Domestic Exports Deemed Export Domestic - Railways Turkey
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78% 78% 78% 77%
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 September 30, 2020 stands at Rs. 226 Mn

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

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800 6%
4%
685 4%
700
611 628 0.3%
2%
600
0%
500 -1%
-2% -2%
400 -4%
316
300 -6%
-8%
200
48 -10%
100
28 2 -12%
- -14%
FY17 FY18 -6 FY19 FY20 -7 FY21H1 -14%
(100) -7 -16%
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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7,000
Segmental Revenues Consolidated (Rs Mn)
6,000
5,000
4,000
3,000
2,000
1,000
-
FY17 FY18 FY19 FY20 FY21H1
EPC 17 - - - -
Project Business 685 611 628 316 48
Manufacturing 3,462 4,252 4,729 5,647 2,950
Manufacturing Project Business EPC
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EBITDA – Earnings Before Interest, Taxes, Depreciation, Amortization including Other Income

Segmental revenues without inter-segment elimination

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FINANCIAL TRACK RECORD

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500 Segmental EBITDA Consolidated (Rs Mn)
400
300
200
100
-
(100)
FY17 FY18 FY19 FY20 FY21H1
EPC (22) (11) (16) (13) (1)
Project Business 28 (6) 2 (7) (7)
Manufacturing 245 229 373 471 271
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	FY 17	FY 18	FY 19	FY 20	Sept 20
Sales	3,799	4,349	4,590	5,149	2,567
EBITDA	82	84	272	332	228
Depreciation (incl. Amortization)	279	271	260	222	107
EBIT	(196)	(187)	12	110	121
Other Income including Exceptional items	202	159	92	272	42
Interest and Finance Charges	41	67	28	55	32
PBT	(36)	(95)	75	328	131
Tax	8	49	43	28	43
Other Comprehensive Income	(2)	(2)	(3)	(11)	-
Restated PAT	(42)	(142)	29	289	88
Restated PAT	(42)	(142)	29	289	88
EBITDA margin (%)	2.17%	1.92%	5.9%	6.5%	8.9%
PAT margin (%)	(1.1%)	(3.3%)	0.6%	5.6%	3.4%

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

12

BALANCE SHEET SNAPSHOT

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	Consolidated
	As on
Rs Mn	Mar-17 Mar-18 Mar-19 Mar-20 Sept-20
Source of Funds	5,271 5,274 4,845 4,992 4,973
Net Worth	4,705 4,494 4,155 4,250 4,342
Minority Interest
Borrowings	453 686 614 677 578
Deferred Tax Liability	112 94 76 65 54
Uses of Funds	5,271 5,274 4,845 4,992 4,973
Gross Block	3,691 3,732 3,826 3,847 3,899
Less :- Depreciation	1,382 1,634 1,865 2,065 2,162
Net Block	2,309 2,098 1,961 1,782 1,738
CWIP	7 6 15 6 2
Investments	100 199 199
Technical Knowhow	25 35 17 19 47
Net Working Capital incl. cash	2,931 3,135 2,752 2,985 2,988
Current Assets	5,112 4,946 5,388 5,568 5,775
Inventories	800 817 1,126 1,444 1,823
Sundry Debtors	1,605 1,851 2,287 1,728 1,601
Cash and Bank Balances	2,146 1,684 1,289 1,582 1,508
Loans & Advances	560 594 686 813 844
Current Liabilities	2,106 1,742 2,569 2,506 2,707
Provisions	74 68 67 77 81

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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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270
3.6%
Promoters 250
1.1% 230
210
16.7% Mutual Funds 190
170
2.7% Foreign Institutional 150
130
Investors
110
Individuals 90
17.4% 58.6% 70
50
Corporate Bodies 30
8-Sep-11 10-Nov-20
Others
TD power BSE_SENSEX BSE_CG (S&P BSE Capital Goods)
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As on 30[th ] Sept. 2020

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THANK YOU

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