Earnings Call Transcript Analysis Report #
Financial Performance Analysis #
Key Financial Metrics (FY25) #
- Standalone Total Income: INR 12.88 billion, an increase of 28% YoY from INR 10.07 billion.
- Standalone EBITDA Margin: 17.46% (including other income, excluding exceptional and treasury income), slightly down from 17.59% YoY.
- Standalone Profit After Tax (PAT) & Comprehensive Income: INR 1,530 million, up 25% YoY from INR 1,223 million.
- A provision of INR 30 million was made for diminution in the value of investment in its subsidiary, DF Power Systems Private Limited.
- Consolidated Total Income: INR 13.02 billion, an increase of 28% YoY from INR 10.17 billion.
- Consolidated PAT & Other Comprehensive Income: INR 1,734 million, a significant increase of 50% YoY from INR 1,156 million.
- Order Book (Manufacturing Segment): INR 13.68 billion as of March 31, 2025.
- Breakdown: Regular manufacturing INR 10.12 billion, Railway business INR 3.16 billion, Space and Aftermarket INR 0.11 billion, Turkey business INR 0.29 billion.
- Order Inflow (Q4 FY25): INR 4.13 billion, noted as the “highest ever since inception of our company.” This represents a 43% Q-o-Q increase and a 41% Y-o-Y increase.
- Order Inflow (Full Year FY25): INR 14.79 billion, up from INR 10.51 billion in FY24.
- Cash Position: Strong at INR 1.99 billion.
- Other Income: A sharp jump in Q4 was attributed mainly to foreign exchange gains.
Revised Guidance/Forecasts (for FY26) #
- Revenue Guidance: Initial guidance of INR 1,500 crores “with a strong upward potential.”
- Order Inflow Guidance: Expected between INR 1,600 crores to INR 1,700 crores.
- EBITDA Margins: Projected in the range of 18% to 18.25% “with an upward movement potential.”
Areas of Growth or Decline #
- Growth: Significant growth in export order inflow (INR 9.85 billion in FY25 vs INR 5.9 billion in FY24, a 67% increase). Domestic order inflow also grew, but at a moderated rate (4% YoY).
- Working Capital: Net working capital days increased, leading to weak operating cash flow in FY25. This was attributed to strategic raw material purchases (copper, electrical steel) and high March invoicing. Management expects a “big improvement in the operating cash flow starting from Q1 onwards.”
- Gross Margins: Q4 gross margin was around 36%.
Strategic Initiatives & Business Updates #
Major Strategic Announcements #
- UK Design Center: TDPS is setting up a design center in the U.K.