TD Power Systems Limited: history, ownership, mission, how it works & makes money

A Brief History of TD Power Systems Limited

TD Power Systems Limited, founded in 1999, is a prominent player in the power generation sector, specializing in the manufacture of energy-efficient equipment for various industries, including thermal, hydro, and renewable energy. The company is headquartered in Bangalore, India, and has developed a reputation for innovation and reliability in its product offerings.

Initially, TD Power Systems focused on engineering, procurement, and construction (EPC) services, but over the years, it shifted towards manufacturing high-quality power generation equipment. In fiscal year 2023, the company reported revenues of ₹700 crores, a significant increase from ₹550 crores in FY 2022, reflecting a growth of approximately 27%.

In 2008, TD Power Systems began showcasing its prowess in the global market by exporting its products to over 40 countries, thereby expanding its customer base significantly. This international diversification played a crucial role in stabilizing revenues during fluctuating domestic demand.

The company’s product portfolio includes turbo generators, power electronics, and auxiliary systems for power plants. A key highlight was the launch of the energy-efficient generator series in 2015, which enhanced the company's competitive edge in the market. This series contributed over 20% to its total sales in the years following its introduction.

In terms of market performance, TD Power Systems went public in 2010 and has since shown robust growth in its stock price. The ticker symbol for the company is TDPOWER. As of October 2023, the share price stood at ₹450, up from ₹300 in 2022, marking an increase of 50%.

Key financial metrics over the past few fiscal years are as follows:

Throughout its history, TD Power Systems has invested heavily in research and development, allocating approximately 5% of its annual revenues to this critical area. This investment has led to several patented technologies that enhance the efficiency and effectiveness of its products.

The company has also embraced sustainability, aligning its goals with the global shift towards greener energy solutions. In 2022, TD Power Systems committed to reducing its carbon footprint by 30% by 2025 through improved manufacturing processes and the integration of renewable technologies into its product lines.

As of 2023, TD Power Systems employs over 1,500 skilled professionals and continues to expand its manufacturing capabilities, indicating a robust outlook for future growth in the power systems sector.

A Who Owns TD Power Systems Limited

TD Power Systems Limited, listed on the Bombay Stock Exchange under the ticker TDPOWERSYS, operates primarily in the field of power equipment manufacturing and services. As of the latest financial reports, the company has shown significant ownership concentration among various institutional and individual investors.

The following table outlines the major shareholders of TD Power Systems Limited as of the most recent quarterly filing:

As of the end of Q2 2023, TD Power Systems Limited reported a market capitalization of approximately ₹2,693 crore (around $324 million). The company has seen steady growth in its revenue, with the latest earnings report indicating a revenue of ₹813 crore for the fiscal year ending March 2023, representing a growth of 12% from the previous fiscal year.

The ownership structure of TD Power Systems Limited highlights that the promoter group retains a substantial stake, providing considerable control over the company's strategic direction. The institutional investors and retail shareholders hold a collective 45.86% of the total equity, indicating a diversified base of ownership among public markets.

In the last fiscal year, the company declared a dividend of ₹4.00 per share, resulting in a dividend yield of approximately 1.5%, which is favorable for income-focused investors.

Trading at a price-to-earnings (P/E) ratio of around 22.5 as of October 2023, TD Power Systems Limited is positioned competitively within the sector. Major competitors in the power equipment market continue to challenge TD Power's market share, emphasizing the importance of sustaining innovation and operational efficiency.

In summary, TD Power Systems Limited's ownership structure is indicative of a well-composed mix of management control and investor diversity, presenting a compelling case for potential investment.

TD Power Systems Limited Mission Statement

TD Power Systems Limited is committed to delivering high-quality power generation solutions. Their mission statement emphasizes customer focus, innovation, and sustainability in the energy sector. The company's mission is succinctly outlined as follows:

• To provide reliable and efficient power generation solutions.
• To reduce the environmental impact of energy production.
• To innovate continuously and leverage cutting-edge technology.
• To achieve operational excellence and customer satisfaction.

In alignment with its mission, TD Power Systems has reported significant financial metrics that highlight its operational effectiveness and market position. For the fiscal year ending March 2023, the company recorded:

TD Power Systems is also focused on sustainability, aligning its mission with international standards for environmental responsibility. They have made strides in reducing carbon footprints in their operations, with initiatives like:

• Implementation of advanced emissions control technologies.
• Investment in renewable energy projects.
• Commitment to achieving carbon neutrality by 2025.

As of September 2023, TD Power Systems has a robust order book valued at approximately 1,500 crores INR, showcasing strong market demand for its products and services. The company's focus on innovation can be evidenced by their R&D spending, which accounted for 5% of total revenue, translating to about 56.18 crores INR in 2023.

Moreover, TD Power Systems emphasizes partnerships and collaborations as part of their mission. The company has established alliances with multiple global firms to enhance its product offerings and expand its market reach. Recent partnerships include:

• Collaboration with Siemens AG for technology exchange.
• Joint ventures with local firms to manufacture components domestically.
• Strategic alliance with ABB to provide smart grid solutions.

In summary, TD Power Systems Limited’s mission statement reflects its dedication to delivering innovative, efficient, and sustainable power solutions. The company's financial data and strategic initiatives underline its commitment to excellence in the energy sector.

How TD Power Systems Limited Works

TD Power Systems Limited, established in 1999, specializes in manufacturing and providing power generation solutions, primarily for diesel and gas generator sets. The company's operations are grounded in its manufacturing facilities located in India, where it produces critical components like alternators, control panels, and engine assemblies.

The company operates across various segments, including the production of generator sets, servicing, and aftermarket support. Its primary customer base includes industrial, commercial, and institutional sectors. In fiscal year 2022, TD Power Systems reported revenues of ₹1,152 crores (approximately $155 million), reflecting a growth rate of 15% year-over-year.

• Revenue (Fiscal Year 2022): ₹1,152 crores
• Growth Rate: 15%

TD Power Systems has a strong focus on innovation and technology, investing approximately 5% of its revenue into research and development. This commitment allows the company to stay competitive in a rapidly evolving market. As of the latest reports, TD Power Systems holds a market share of approximately 12% in the Indian generator set industry.

The production process involves multiple phases, from component sourcing to assembly and testing. The company sources raw materials globally, ensuring high-quality standards. Once assembled, each generator set undergoes rigorous testing before delivery, enhancing reliability and customer satisfaction.

Financial Performance

TD Power Systems' financial health can be attributed to its diverse product portfolio and extensive service capabilities. A review of key financial metrics reveals the following:

TD Power Systems also offers comprehensive service agreements, which provide ongoing maintenance and support for their generator sets. In FY 2022, service agreements generated approximately 30% of total revenue, indicating a robust after-sales support sector.

Geographically, the company extends its reach beyond India, exporting to over 30 countries, including regions in Africa, the Middle East, and Southeast Asia. This international presence contributes about 25% of the total revenue. The focus on global markets enables TD Power Systems to mitigate risks associated with domestic economic fluctuations.

In terms of sustainability, TD Power Systems is increasingly investing in eco-friendly technologies, including biofuels and hybrid systems, aimed at reducing carbon emissions. The company aims to achieve a *20%* reduction in emissions from its products by 2025.

To further enhance operational efficiency, TD Power Systems has implemented advanced manufacturing technologies, including automation and smart factory concepts, which are expected to increase production capacity by 30% over the next five years.

Overall, TD Power Systems Limited exemplifies a well-managed entity positioned for growth, driven by innovation, strategic global outreach, and a commitment to sustainability.

How TD Power Systems Limited Makes Money

TD Power Systems Limited primarily generates revenue through the design, manufacture, and supply of power generation equipment. The company offers a range of products including, but not limited to, gas turbine generators, hydro turbine generators, and other auxiliary equipment. These offerings address both domestic and international markets.

In the fiscal year 2022, TD Power Systems reported a revenue of ₹1,045 crore, marking an increase of approximately 15% compared to the previous year, which had a revenue of ₹910 crore.

Segments of Revenue Generation

The company's revenue can be broadly divided into the following segments:

• Products: This segment includes gas and hydro turbine generators.
• Services: It involves maintenance, repair, and operations (MRO) services for the installed base.
• Project Engineering: This includes designing and executing power generation projects.

Revenue Breakdown by Segment

The majority of the revenue, approximately 62%, comes from the sale of products, while services and project engineering contribute 24% and 14% respectively. This diversification aids in stabilizing revenue streams against market fluctuations.

Cost Structure and Profitability

TD Power Systems' operating expenses primarily consist of raw materials, labor, manufacturing overheads, and marketing. In FY 2022, the total cost of goods sold (COGS) amounted to ₹780 crore, leading to a gross profit of ₹265 crore. This results in a gross margin of approximately 25.4%.

The operating income for the same fiscal year stood at ₹185 crore, giving an operating margin of 17.7%. Net income reached ₹135 crore, with a net profit margin of 12.9%.

Market Presence

TD Power Systems has a significant footprint in both domestic and international markets. As of 2023, approximately 40% of its revenue comes from exports, predominantly to countries in the Middle East and Southeast Asia. This international exposure reduces dependency on the domestic market and enhances growth prospects.

Innovation and R&D Investments

Investment in research and development is crucial for maintaining a competitive edge. In FY 2022, TD Power Systems allocated ₹50 crore toward R&D, focusing on improving turbine efficiency and reducing emissions. This investment has positioned the company well in the growing renewable energy segment.

The company has also been exploring new technologies in hybrid power generation, which is expected to open new revenue streams in the future.

Recent Financial Highlights

In its latest quarterly earnings report, TD Power Systems posted a revenue of ₹275 crore for Q1 2023, reflecting a year-over-year increase of 18%. The net profit for the quarter was ₹35 crore, compared to ₹30 crore in Q1 2022.

Conclusion

Overall, TD Power Systems Limited has established a multi-faceted approach to revenue generation through product sales, service offerings, and project execution. This strategy, bolstered by strong financial performance and ongoing investments in technology, positions the company for future growth.