TD Power Systems

TD Power Systems recently secured a significant order worth USD 9.28 million for gas turbine generators from a major US Original Equipment Manufacturer (OEM).

Recent Order Win
Adding to its achievements, TD Power Systems recently secured a significant order worth USD 9.28 million for gas turbine generators from a major US Original Equipment Manufacturer. These generators will be used in fracking wells, AI server farms, and other applications in the US, with deliveries scheduled from January 2025 to August 2025. This order highlights the company’s ability to attract substantial international business, further solidifying its global presence.

Stock Performance
On Tuesday, the stock gained 3%, contributing to a remarkable 42% increase in 2024. This strong performance reflects investor confidence in the company’s growth prospects and strategic direction.
TD Power Systems has demonstrated impressive performance for the year ended March 2024, marked by significant achievements in generator installations, order inflows, and stock performance. This blog delves into the key highlights of the company’s performance, providing insights into its growth trajectory and market presence.

Generator Installations: A Steady Growth
In FY24, TD Power Systems installed a total of 496 generators, with 49% supplied to the domestic market and 51% exported. While this is a slight decrease from the 521 generators installed in FY23, it highlights the company’s consistent demand and market presence. Since its inception, the company has installed a total of 6,297 generators, with a notable shift towards export markets, which now account for 41% of the total installations compared to 16% before FY13.

Domestic and Export Market Growth
The company’s domestic market has grown at a CAGR of 7% between FY13 and FY24, while the export market has experienced a remarkable CAGR of 21% during the same period. This growth underscores TD Power Systems’ strategic focus on expanding its global footprint and tapping into new geographies.

Order Book and Inflows
As of March 31, 2024, TD Power Systems’ total order book stands at ₹1,189.5 crore. The order inflow for Q4FY24 was ₹2,897 million, representing a 23% YoY growth from Q4FY23. Notably, export (including deemed exports) order inflow increased by an impressive 72% YoY in Q4FY24.

Domestic and Export Market Performance
In FY24, order inflows from both domestic and export markets recorded solid growth. Domestic order inflows grew by 13% YoY, while export order inflows surged by 33% YoY. This growth reflects the company’s strategic efforts to strengthen its market position both locally and internationally.

Aftermarket Segment Opportunities
The generators installed over the past decade present an excellent opportunity for TD Power Systems’ aftermarket segment. With a significant installed base, the company is well-positioned to leverage maintenance, service, and upgrade opportunities, thereby driving additional revenue streams.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.