Techno Electric & Engineering Q2 Results Review - Muted Performance; May Reverse In H2: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Techno Electric and Engineering Ltd.’s Q2 FY23 revenues declined 17% YoY to Rs 2.3 billion impacted by deferment of execution in the engineering, procurement and construction segment to H2 FY23. Gross margin expanded by 245 bps YoY to 43.1% on account of lower raw material purchases. However, due to operating deleverage, Ebitda margin came in flat at 31.2%. Order intake stood at Rs 4 billion, which was much lower than the Rs 19 billion in Q1 FY23. Current orderbook grew to Rs 36 billion from Rs 32 billion at Q1 FY23-end. Management indicated incremental order inflow of Rs 15 billion in H2 FY23 (Rs 23 billion in H1). With strong order backlog, we expect execution to pick-up in H2 FY23 and in subsequent years. As flue gas desulfurisation and transmission ordering activity gathers pace, we expect order intake to continue the current momentum in FY23E/FY24E and thereby execution to remain healthy. Techno Electric and Engineering has a net cash balance of Rs 12 billion. It has decided to sell ~40 mega watt of its 129 mega watt wind assets and offload the balance to a separate special purpose vehicle. This is expected to improve receivables going forward..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Techno Electric & Engineering Q2 Results Review - Muted Performance; May Reverse In H2: ICICI Securities

With strong order backlog, we expect execution to pick-up in H2 FY23 and in subsequent years.

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Techno Electric & Engineering Q2 Results Review - Muted Performance; May Reverse In H2: ICICI Securities

With strong order backlog, we expect execution to pick-up in H2 FY23 and in subsequent years.

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