TD Power System shares surge most in over a year, hit 52-week high; here’s why

Shares of TD Power Systems, the country's leading heavy electrical equipment maker, surged as much as 19%, its biggest single day gain in more than a year, to hit a fresh 52-weeks high of ₹1,515 on the National Stock Exchange (NSE) a day after it reported June quarter earnings.

TD Power Systems post market hours on Tuesday said that its standalone net profit in April-June period rose 79% to ₹86 crore from ₹48 crore in the same period last year.

The maker of power generators for turbines and engines said that its revenue from operations in the first quarter advanced 75% to ₹628 crore compared with ₹358 crore in the year-ago period.

The company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 86% to ₹121 crore and EBITDA margin improved by 110 basis points to 19.34%.

The Bengaluru-based company in an investor presentation said that order inflow in the first quarter of current financial year rose 87% to ₹734 crore and 93% of order inflow was from exports.

Its total order book stood at ₹2,207 crore.

During the quarter, TD Power Systems secured multiple orders from leading turbine OEM across steel, cement and sugar industries, including international projects in Africa and the Middle East.

It also received multiple Captive Power Plant (CPP) orders from a major turbine OEM — including a 60 MW, 2 - pole range generator, among the largest in the segment.

The company strengthened export presence with orders from European and US OEMs for USA energy -infrastructure projects in the 60 Hz market.

In hydro generator segment, the company won orders from European and Domestic Hydro OEMs for projects in Europe and India across the 9–22 MW range.

Meanwhile, TD Power System shares were in high demand on exchanges as trading activity spiked.

As many as 6.38 lakh shares changed hands compared with an average of 2.67 lakh shares traded daily in the past two weeks on the BSE.

As of 11:42 am, TD Power System shares traded 15.85% higher at ₹1,478, outperforming the NIFTY50 index which was down 0.75%.