Techno Electric & Engineering Company (TECHNOE) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong financial performance with revenue from EPC at INR 213.74 crore, up 19.55% year-over-year, and robust order book ensuring high revenue visibility for the next 36 months.

• Maintains a debt-free status, AA long-term credit rating, and a market cap of $2 billion as of June 2024.

• Profit before tax for the quarter was INR 75.73 crore, up 5% year-over-year; EPS rose 95.83% to INR 9.34.

• Revenue from discontinued operations was INR 59.90 crore, mainly from recovery of interest on delayed energy payments.

• Over 400 projects completed across power generation, transmission, distribution, industrial, and data center sectors.

Financial highlights

• Q1 FY25 revenue reached INR 4,137.41 million, up from INR 3,460.72 million in Q1 FY24; EBITDA was INR 565.32 million with a margin of 13.66%.

• Q1 FY25 PAT stood at INR 538.71 million, slightly down from INR 556.06 million in Q1 FY24.

• Other income for Q1 FY25 was INR 23.2 crore, down from INR 30.64 crore year-over-year.

• Tax for the quarter, including discontinued operations, was INR 100.43 crore, up 95.78% year-over-year.

• Annual cash surplus exceeded INR 2,500 million; order book as of June 30, 2024, was INR 91,006 million.

Outlook and guidance

• Revenue guidance: INR 2,500 crore for FY25, INR 3,500 crore for FY26, and INR 5,000 crore by 2028.

• EPS guidance: INR 35 for FY25, INR 50 for FY26, and INR 75 for FY27 (excluding data center SPV contribution).

• Margins expected to be sustained at 13%-15% EBITDA.

• CapEx planned at INR 8,000-10,000 crore over 2-3 years, mainly for smart meters, TBCB, and data centers.

• Targeting annual order inflows of INR 2,000–2,500 crore in transmission and INR 1,500–2,000 crore in smart meters.