Nikhil Kumar, Joint Managing Director, TD Power Systems Limited has Over 20 years in electrical/power equipment manufacturing. He is responsible for managing operations, strategic planning, technology alliances and sales.
TD Power Systems is one of the leading manufacturers of AC Generators with output capacity in the range of 1 MW to 52 MW. The company’s focus is on manufacturing custom-designed generators for its global customers.
In addition to manufacturing AC Generators, TDPS also executes Turbine Generator island projects for steam turbine power plants with output capacity up to 52 MW using a Japanese turbine combined with its own generator. The company’s subsidiary, DF Power Systems Private Limited, is in the business of Engineering, Procurement and Construction, executing Boiler-Turbine Generator island projects with output capacity from 52 MW up to 150 MW.
Following are the key highlights of the conference call conducted by TD Power Systems Limited after its quarterly results.
“While we remain confident about the longer term prospects for our business, near-term visibility remains uncertain,” said Nikhil Kumar during conference call.
How was the first quarter for your company?
Q1 FY13 performance highlights the weak demand outlook for capex commitments in several industrial sectors. While we remain confident about the longer term prospects for our business, near-term visibility remains uncertain for both order bookings and sales.
Export visibility has been strong in the manufacturing business and we are working with several global leaders to develop new products. However, we do not expect exports to completely compensate for the weakness in the domestic market. In our EPC and projects businesses, we are negotiating a number of orders and expect order inflow to improve in the near-term.
We are also focusing on our earlier strategies of continuously exploring new geographies, enhancing our product portfolio, augmenting technology leadership and creating cost efficiencies apart from greater cost consciousness at the overheads level.
How do you see order inflows?
On the EPC and Projects businesses, we are currently negotiating a number of new orders and we well placed to receive a few of them.
In the short term, we expect good turnaround in order bookings.
Did you see any order cancellations in Q1?
The company has not faced any order cancellations in the last quarter.
What is your current order book?
Our current order book position stands at Rs. 4428mn.
Brief us about your financials?
The net profit for Q1 FY12 stood at Rs. 144.9mn, while the total income was at Rs. 1660mn. Total income has declined by 20%, while the PAT has grown by 16% with higher contribution from interest income and foreign exchange variation.
Share your business highlights for power projects business?
DF Power Systems Pvt Ltd, a wholly owned subsidiary of the company, executes EPC projects which include BTG island project and BOP portion (excluding civil works) for steam turbine power plants with output capacity from 52 MW up to 150 MW.
The company has executed 103 projects aggregating 2,545 MW in India and abroad (95 TG island projects and 8 BTG island projects).
The projects order book as on June 30th, 2012 stands at Rs 2,244mn.
What is your outlook on the power sector?
We are completely dependent on the government policy and with the change in the Union Finance Ministry we see the investment climate improving in the country.
How much revenue comes from manufacturing?
About 57% of our manufacturing revenues come from exports, which clearly reflect weakness in the domestic market. Exports currently are 32% of pending orders in manufacturing business.