Techno electric engg ltd

salman_khan · October 17, 2023, 6:26pm

Few pointers why i would delay the investment in this company

Data centre Chennai data centre commissioning pushed from sept23-dec23 to now march 24
data centre and AMI business is pulling the numbers down on a consol level
all the investments in data centres and AMI is not generating any revenue so mostly the kicker will come from q4 fy23 or maybe q1 fy24
but i guess the price may shoot before that if they get some strategic investor to do a JV or Buyout the data centre business
Techno can also be a good pick as it caters to all the themes which are currently in momentum namely power transmission,Smart meter,Data centre etc

salman_khan · October 17, 2023, 6:34pm

Power cost is the biggest running cost for a data centre ,earlier the management had said that they would be drawing power from their renewable assets for their Chennai data centre ,but now since they have sold off the wind business do they have any other renewable assets to supply power ?

vineet_mittal · October 17, 2023, 6:39pm

I think, intent is to allow JV partner to decide Power supplier for RE . Now days, lot companies are buying stake in power generator to sign long term sheet.

Where can i find recording of the interview which you are sharing ?

salman_khan · October 18, 2023, 3:15am

Here

nandan_ganatra · October 18, 2023, 5:26am

This may answer your question.

Concall notes from Q3 FY23.

I would suggest you to read atleast last 4 concalls of this company. You will get better updated idea about company’s growth plans for future.

Management has given good amount of details about their plans in concalls. Their execution will be the key monitorables for investors.

nandan_ganatra · November 10, 2023, 10:12am

Very strong numbers from Techno Electeic

Finally Management is walking the talk…

Revenue at 486 Cr Vs 185 Cr YoY
Profit at 72 Cr Vs 36 Cr

EPS of 6.63

EPC Margins around 15%

Concall on 16th November - Important thing to watchout for is their ordebook guidence.

Disc: Invested since last year, added more recently. One of my top holding.
Biased views.

nandan_ganatra · November 16, 2023, 10:31am

Techno electric concall - strong outlook

● Total unexecuted Orderbook : 4361 Cr
Received this quater- About 850 Cr.

● L1 in order worth 2700 Cr - including About 2000 Cr in AMI ( Smart meter ) - from Jharkhand, Tripura , J&K
( On initial notes of concall - company said that L1 is 3550 Cr. However, later MD, Mr. Gupta rectified it by saying that L1 of 3550 Cr. includes received order of 850 Cr. )

● Bid of 5000 Cr yet to open- company expects further 2000 Cr from it

● Guidance:
FY24 topline - 1600-1800 Cr
FY25 - 2500 Cr

● Data centre
~ Got a land allotment in Kolkata for data centre

~ Invested 220 Cr. on chennai data centre so far. - Further capex of 330 Cr. to be done in next 4-5 months , by FY24.
~ Revenue to start flowing in from next FY

Overall, Total Capex in chennai phase 1 of 1200 Cr - to be completed by FY25.

● Cash on books: 1500 Cr. - to be used for growth, such as data centre assets , Smart meters etc.

~ 1000 Cr. Investment in Smart meter projects

~ To be large dividend paying company going forward as well.

~ Receivables pending from windpower: 125 Cr. From tamilnadu goverment

Disc: Invested since last year, as mentioned earlier, biased views.
I am not a SEBI registered analyst. Do your research well before any buy/ sell.

anjeshv4 · November 16, 2023, 3:48pm

Any guidance on the margins? That’s the real number that can propel the stock.

Sudhanshu_Shekhar · November 16, 2023, 4:24pm

Hi. pls share the concall link

nandan_ganatra · November 16, 2023, 4:24pm

Overall margins guidance have been maintained at 13% +/-

No changes

nandan_ganatra · November 16, 2023, 4:27pm

I have taken notes from the live concall - which was at 2:45 today,

I dont think company has shared its links as yet. Should be available soon on company website - I think.

nandan_ganatra · November 21, 2023, 7:30am

Techno electric wins another 525 Cr. Order for substation & transmission projects

Midhunjoe · November 21, 2023, 5:29pm

**Techno Electric Concall Notes

Order Book

H1= Rs 611 Cr + Smart Meter order 536 Cr+ Transmission Order 288cr = 1435 Cr
They are L1 for orders worth 3550 Cr.
Pipeline bids = 5000 Cr

Management has given revenue projections as follows

FY 24 = 1800 Cr
FY 25= 2500 Cr
FY 26 = 3000 Cr

EBITDA Margin @ 13%

Segment wise Projection

FGD business to be Subdued , growth to come from Smart meter, transmission and data center business.

Order book projection

FGD = 1450 Cr
Transmission = 3000 Cr for 3-5 yrs
Smart meter = 2000 Cr every year.
Got 1 order from J&K for 2.5 Lakh meters worth 536 Cr.

Data Centre Capex Update

24 MW IT load
Civil work completed
Invested 220 Cr
1st phase by 2024 March

Significant interest in developing DC in JV model from partners .
Smart meter target of 1 mn meters/year

Cash in books = Rs 1500 Cr approx Rs 140/share

Data Centre rental approx 80-110 $ /KVA or 90-100 lakh INR /MW.
Cost of data centre approx 5 mn/MW .

All in all very bullish commentary from the management .
With a BOE calculation based on the management projections it can double in next 3 yrs from even current levels.

nandan_ganatra · November 22, 2023, 3:08am

Thanks for notes.

Only one correction here - On initial notes of concall - company said that L1 is 3550 Cr. However, later MD, Mr. Gupta rectified it by saying that L1 of 3550 Cr. includes received order of 850 Cr. So actual L1 is 2700 Cr

nandan_ganatra · November 22, 2023, 10:01am

News are coming in thick and fast for techno electric.

Techno electric & Keppel Data centre ( india ) pvt ltd. Sign MOU for collaboration on a joint data centre campus development

The Keppel group owns and operates a global portfolio of more than 30 data centres located in key data centre hubs across Asia Pacific and Europe.

This is very positive developement indeed.