TD Power Shares Jump on ₹300 Crore Traction Motor Deal

21 Oct 2024 , 05:47 PM

On October 21, TD Power shares surged 3.6% on the BSE, reaching an intraday high of ₹420.5 per share after the company signed a five-year contract with the Indian arm of a major global firm.

This contract involves the supply of traction motors to the European market, with an initial order worth ₹18 Crore, scheduled for delivery in April 2025. The total business volume from this deal is expected to be around ₹300 Crore over the next five years.

TD Power Systems manufactures AC generators and electric motors customized for various applications, including traction motors and gas engines.

In Q1 FY25, the company reported a 32.65% increase in net profit to ₹35.35 Crore, with a 24.28% rise in sales to ₹273.78 Crore compared to Q1 FY24.

TD Power secured two additional contracts on October 15 from gas engine OEMs, valued at ₹142 Crore for gas engine generators, aimed at export markets.

The company expects to receive more orders in the coming quarters due to rising demand for gas engine products, especially for grid stabilisation, base load power, and data centres.