Techno Electric & Engineering announces Q3 FY16 result; Net Profit up by 125%Y-o-Y

Techno Electric & Engineering Limited (TECHNO) announced its Q3FY16 results on Friday. TECHNO reported good Q3 numbers with consolidated revenue increasing by 25.1% Q-o-Q and 75% Y-o-U basis at Rs.316.7 crores.  The consolidated EBITDA is down by 55.3% Q-o-Q and 7% Y-o-Y basis at Rs.36.97 crore which is not comparable on Q-o-Q and Y-o-Y basis, as it has sold its wind farm subsidiary to focus on core business. The consolidated EBIDTA Margin stands at 11.7%. Other income includes the income generated from the sale of wind assets. The consolidated net profit was up by 125% Y-o-Y and down by 40.7% Q-o-Q basis at Rs.27.72 crore, due to one of the exceptional items related to forex and service tax. On Segmental basis, it has seen good growth in EPC business which contributes 93.7% of revenue, and is up by 55.1% on QoQ basis and 97.7% on YoY basis with EBITDA margin of 9.8%.

On consolidated nine month front, it has seen revenue growth of 40.8% YoY at Rs.824.7 crore. The EBITDA is down by 2.7% YoY basis at Rs.164.63 crore and EBITDA margin stands at 21.3%. The Net profit has increased by 34% YoY basis at Rs.112.18 crore and profit margin stands at 14.5%. On segmental front, EPC business is up by 53.4% basis, with EBITDA margin of 10.6%. In an interview, management stated that it expects positive outlook for transmission market for next three to four years. 

Today share price of TECHNO closed at Rs.485.5, up by 1.86% on NSE. 

TECHNO is one of the leading EPC service provider across the entire power sector value chain - generation, transmission and distribution. It also possesses specific domain knowledge that enables it to serve the EPC needs of steel, fertiliser, metals and petrochemicals sectors, among others. TECHNO has presence in 3 different businesses i.e. transmission and distribution EPC (84% of Revenue 2015); transmission projects under PPP model (negligible contribution currently); and renewable energy generation (16% of Revenue 2015), with a cumulative capacity of 162MW (45 MW being sold recently).