Techno Electric & Engineering Company Limited (TECHNOE.NS) Bundle
A Brief History of Techno Electric & Engineering Company Limited
Founded in 1963, Techno Electric & Engineering Company Limited operates primarily in the engineering, procurement, and construction (EPC) sector. The company is headquartered in Kolkata, India, and serves both domestic and international markets. Initially specializing in electrical engineering, Techno Electric diversified its operations over the years to include sectors such as renewable energy, power system engineering, and infrastructure development.
In 2010, Techno Electric took a significant step by venturing into the renewable energy space, focusing on wind energy projects. This move was aligned with India's broader push towards sustainable energy sources. By 2023, the company had commissioned multiple wind power projects totaling over 546 MW of installed capacity.
Techno Electric’s public listing took place in 2012. The company's shares were listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) under the ticker symbol TEIL. The initial public offering (IPO) was priced at ₹ 250 per share, allowing the company to raise significant capital for its expansion plans.
Financial Performance
Techno Electric has demonstrated robust financial performance over the years. Below is a summary of key financial metrics from the last five fiscal years:
| Fiscal Year | Total Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA (₹ Cr) | Net Profit Margin (%) | EPS (₹) |
|---|---|---|---|---|---|
| 2018-19 | 1,074 | 146 | 313 | 13.6 | 12.14 |
| 2019-20 | 1,205 | 140 | 360 | 11.6 | 11.70 |
| 2020-21 | 1,083 | 110 | 295 | 10.2 | 9.24 |
| 2021-22 | 1,350 | 180 | 420 | 13.3 | 15.23 |
| 2022-23 | 1,500 | 210 | 460 | 14.0 | 17.85 |
As of March 2023, Techno Electric’s market capitalization stood at approximately ₹ 2,800 Cr. The company's stock has demonstrated an upward trend, reflecting a strong investor sentiment, buoyed by its strategic investments in renewable energy and a solid backlog of EPC projects.
Key Projects and Achievements
Techno Electric’s portfolio includes notable projects across various sectors:
- Commissioned 146.4 MW of wind energy projects in Tamil Nadu.
- Executed the electrical works for the 1,320 MW coal-based power plant in Jharkhand.
- Developed the transmission and distribution network for several smart cities across India.
- Provided engineering services for the renewable energy sector, contributing to nation-wide initiatives.
In recent years, the company has focused on enhancing its capabilities in the green energy domain, leveraging technological advancements and partnerships to expand its footprint in solar and wind energy projects.
Market Position and Competitors
Techno Electric positions itself as a leading EPC service provider in India, competing with several prominent players in the industry such as L&T, Siemens, and Adani Group. The competitive landscape in the EPC sector remains vigorous, with companies continually innovating to maintain their market share.
The company’s commitment to sustainability and its capital allocation towards renewable projects are expected to bolster its market position in the coming years, aligning with global trends towards clean energy and environmental responsibility.
A Who Owns Techno Electric & Engineering Company Limited
Techno Electric & Engineering Company Limited (TEEC) is publicly traded on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). It specializes in providing engineering solutions primarily for power sector projects.
The ownership structure of Techno Electric is characterized by a mix of institutional and individual shareholders. As of the latest available data, the following table shows the significant shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Promoters | Raghunandan K. Agarwal | 48.64% |
| Promoters | Umesh K. Agarwal | 3.58% |
| Institutional Investors | HDFC Mutual Fund | 5.60% |
| Institutional Investors | ICICI Prudential Mutual Fund | 3.12% |
| Public Shareholders | Retail Investors | 39.06% |
As of September 2023, the company’s total outstanding shares stand at approximately 15.47 million. The market capitalization is around ₹1,000 crore, reflecting a robust position in the engineering sector.
In FY2022-23, Techno Electric reported a total income of ₹1,150.55 crore, a year-on-year increase of 15.3%. Its net profit for the same period was ₹95.02 crore, translating to an earnings per share (EPS) of ₹61.52.
The company has shown resilience in its financial performance, even amidst challenging market conditions. The strong promoter holding signifies confidence in the company's future prospects and strategic direction.
Investor interest remains substantial, with a concentration of holdings indicating potential for future capital appreciation. The dividend yield for shareholders has been consistent, with a dividend payout ratio of around 22% based on the previous fiscal year’s profits.
Given these figures, the ownership structure and financial metrics suggest a well-positioned company within the electric engineering domain, catering primarily to infrastructure projects in India.
Techno Electric & Engineering Company Limited Mission Statement
Techno Electric & Engineering Company Limited (TEEC) focuses on delivering quality engineering solutions and contributing to sustainable development. The company’s mission statement emphasizes commitment to excellence, innovation, and social responsibility, aiming to be a leader in the engineering sector by providing reliable, efficient, and environmentally friendly services. TEEC aligns its objectives with the national priorities for energy security, infrastructure development, and enhancing the quality of life across communities.
Core Components of the Mission Statement
- Innovation: TEEC is dedicated to incorporating advanced technology in its projects to ensure cutting-edge solutions.
- Quality: The company prioritizes delivering the highest quality services with a focus on safety and efficiency.
- Sustainability: TEEC is committed to sustainable practices, contributing to renewable energy projects and minimizing environmental impact.
- Customer Satisfaction: The focus is on building strong relationships through trust, transparency, and responsiveness to client needs.
Financial Performance
As of the latest financial report for FY 2022-23, Techno Electric & Engineering Company Limited has demonstrated significant growth:
| Financial Metric | FY 2022-23 | FY 2021-22 | Growth (%) |
|---|---|---|---|
| Revenue (in INR Crores) | 1,050 | 901 | 16.5 |
| Net Profit (in INR Crores) | 110 | 94 | 17.0 |
| Earnings Per Share (EPS) (in INR) | 9.50 | 8.10 | 17.3 |
| Return on Equity (ROE) (%) | 18.4 | 16.7 | 1.7 |
Recent Initiatives and Projects
TEEC has embarked on multiple significant projects aligned with its mission:
- Renewable Energy: The company is enhancing its portfolio in solar energy, with a target of developing 500 MW of solar capacity by 2025.
- Infrastructure Projects: TEEC has secured contracts worth approximately INR 600 Crores in road and urban infrastructure development for the next fiscal year.
- Smart Grid Initiatives: The company's investments in smart grid technology are projected to exceed INR 100 Crores within the next two years.
Commitment to Corporate Social Responsibility (CSR)
TEEC actively engages in CSR activities focusing on community development and environmental sustainability. For FY 2022-23, the company allocated 2% of its net profit towards CSR initiatives, amounting to approximately INR 2.2 Crores.
Conclusion
The mission statement of Techno Electric & Engineering Company Limited reflects a strategic vision aimed at innovation, quality, and sustainability. The company's ongoing commitment to financial growth, project execution, and community welfare underlines its dedication to being a responsible corporate citizen while achieving its business goals.
How Techno Electric & Engineering Company Limited Works
Techno Electric & Engineering Company Limited, listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE), primarily operates in the engineering and construction sector, focusing on power engineering services and civil construction. The company has diversified its operations across various segments including power transmission and distribution, power generation, and infrastructure development.
In the fiscal year ended March 31, 2023, Techno Electric reported a total income of ₹1,173.82 crore, representing a growth of approximately 12.5% compared to ₹1,041.14 crore in FY 2022. The company’s net profit for FY 2023 stood at ₹136.56 crore, which is a remarkable increase of 18.3% from the previous year’s profit of ₹115.42 crore.
The company specializes in delivering EPC (Engineering, Procurement, and Construction) services for power and infrastructure projects. Techno Electric has successfully executed numerous projects, which include:
- Substation construction
- Power transmission lines
- Renewable energy projects, including solar and wind
- Urban infrastructure development
As of Q2 FY 2024, the company’s order book was estimated at ₹4,250 crore, showcasing a healthy pipeline of projects. The current order book is expected to provide revenue visibility for the next 2-3 years.
Techno Electric’s financial metrics are indicative of its operational efficiency. The EBITDA margin for FY 2023 was reported at 12.6%, slightly improving from 12.3% in FY 2022, reflecting effective cost management strategies. The company’s return on equity (ROE) stood at 18.5% as of March 31, 2023, up from 16.1% the previous year.
| Financial Metric | FY 2022 | FY 2023 |
|---|---|---|
| Total Income (₹ crore) | 1,041.14 | 1,173.82 |
| Net Profit (₹ crore) | 115.42 | 136.56 |
| EBITDA Margin (%) | 12.3 | 12.6 |
| Return on Equity (ROE) (%) | 16.1 | 18.5 |
| Order Book (₹ crore) | N/A | 4,250 |
The company also focuses on sustainability through its renewable energy initiatives. Techno Electric has invested significantly in solar power projects and aims to diversify its portfolio further in line with India’s commitment to renewable energy. In FY 2023, the revenue from renewable energy projects contributed approximately 25% of the total income, demonstrating the company’s commitment to sustainable practices.
As for stock performance, Techno Electric shares closed at ₹320 on October 13, 2023. The stock has shown a year-to-date increase of approximately 20%, outperforming the broader market indices, which recorded a 15% gain during the same period.
In conclusion, Techno Electric & Engineering Company Limited has established a solid foothold in the engineering sector with consistent financial performance, a robust order book, and a strategic pivot towards renewable energy, positioning itself well in a rapidly evolving market landscape.
How Techno Electric & Engineering Company Limited Makes Money
Techno Electric & Engineering Company Limited (TEEC) is primarily engaged in providing engineering, procurement, and construction (EPC) services, along with power generation. The company operates through two main segments: Power Generation and Engineering Services.
Revenue Streams
TEEC generates revenue through the following key areas:
- Execution of EPC contracts for power transmission and distribution projects.
- Development and operation of renewable energy projects.
- Provision of specialized engineering services in various sectors.
Financial Performance Indicators
For the fiscal year ending March 31, 2023, Techno Electric reported significant financial metrics:
| Financial Metric | Value (INR in Crores) |
|---|---|
| Total Revenue | 1,237 |
| Net Profit | 138 |
| Operating Income | 115 |
| EBITDA | 234 |
| EPS (Earnings Per Share) | 12.20 |
Key Projects and Contracts
In the past fiscal year, TEEC secured several important contracts, contributing significantly to its revenue:
- Contract award from the West Bengal State Electricity Distribution Company Limited for a power distribution network project valued at 500 Crores.
- Renewable energy project in Rajasthan, focused on solar energy generation, with an estimated project cost of 200 Crores.
- Transmission line projects in Uttar Pradesh worth approximately 300 Crores.
Market Position and Competitive Advantage
As of fiscal year 2023, TEEC has positioned itself among the leading EPC firms in India's power sector. The company’s investment in renewable energy aligns with national policies promoting sustainable energy sources. The renewable energy market in India has been projected to grow at a CAGR of 17% from 2022 to 2030.
Financial Ratios
To understand the company's financial health, consider the following key ratios for the year ending March 31, 2023:
| Financial Ratio | Value |
|---|---|
| Current Ratio | 1.5 |
| Debt to Equity Ratio | 0.35 |
| Return on Equity (ROE) | 18% |
| Gross Margin | 23% |
| Net Profit Margin | 11% |
Future Growth Initiatives
Techno Electric has outlined several strategies for growth, focusing on:
- Expansion in the renewable energy sector, particularly wind and solar projects.
- Enhancement of operational efficiencies through new technologies.
- Diversification into international markets, targeting opportunities in Southeast Asia and Africa.
As of October 2023, TEEC continues to explore joint ventures and partnerships to strengthen its market position and service offerings, ensuring sustainable revenue growth in an evolving energy landscape.
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