Shares of TD Power Systems Ltd., a small-cap company specializing in AC generators and electric motors, rose more than 6% after the company received two significant orders worth ₹142 crore for gas engine generators.
With a market capitalization of ₹6,382.44 crore, TD Power Systems reached an intraday high of ₹409.80, reflecting a 6.19% increase from its previous closing price of ₹385.60 per share.
According to filings with the stock exchange, TD Power Systems secured export orders totaling ₹142 crore from two leading international manufacturers of gas engine equipment. The delivery of these generators will occur over this financial year and the next, and the company expects to receive additional orders in this segment in the upcoming quarters.
In July, the company also obtained a $9.28 million order for gas turbine generators from a major U.S. original equipment manufacturer. These generators are intended for use in fracking wells, providing power and backup for AI server farms in the U.S., as well as for other applications.
For the first quarter of FY25, TD Power Systems reported a net profit increase of 32%, reaching ₹35.35 crore compared to ₹26.65 crore in the same period last year. Revenue from operations also grew by 24.28%, rising to ₹273.78 crore from ₹220.29 crore year-on-year.
The company has shown consistent improvement in its return on capital (ROC) and return on capital employed (ROCE) over the past five years, increasing from 4.55% and 5.75% in FY20 to 18.07% and 25.12% in FY24, respectively. Additionally, the company’s shares have generated a 39% return over the past six months and 51% year-to-date.
As of Q1 FY25, TD Power Systems has an order book totaling ₹1,215 crore, with 43.09% coming from exports, 32.45% from railway orders, and 21.76% from domestic clients. The remaining orders are from sales in Turkey (1.36%) and spare parts (1.31%). Notably, the company is debt-free.
TD Power Systems Ltd. manufactures AC generators and electric motors for a variety of applications. Its product portfolio includes generators for turbines and engines, as well as customized applications for locomotives, marine and naval use, oil and gas, geothermal, and solar thermal industries. The company also produces various types of electric motors.
You Might Be Interested In