May 26, 2014 Analyst: Devam Modi devam@equirus.

com (+91-8128694102 +91 79-40504018) Page 1 of 10

Before reading this report, you must refer to the disclaimer on the last page.

TD Power Systems Ltd.
Absolute : TRADE
Relative : NR
4Q14 Final Take: Est. (), TP (), Rating () Regular Coverage 3% ATR in 10 months
Improved Visibility of Ramp Up in Export Orders supports current re-rating Industrials
2014 Equirus All rights reserved
Rating Information
Price (Rs) 312
Target Price (Rs) 318
Target Date 31st Mar' 15
Target Set On 26th May'14
Implied yrs of growth (DCF) 10
Fair Value (DCF) 270
Fair Value (DDM) 29
Ind Benchmark BSETCG
Model Portfolio Position NA

Stock Information
Market Cap (Rs Mn) 10,370
Free Float (%) 37.97 %
52 Wk H/L (Rs) 335.95/175.4
Avg Daily Volume (1yr) 15,563
Avg Daily Value (Rs Mn) 4
Equity Cap (Rs Mn) 332
Face Value (Rs) 10
Bloomberg Code TDPS IN

Ownership Recent 3M 12M
Promoters 62.0 % 0.0 % 0.0 %
DII 6.5 % 0.2 % 1.6 %
FII 20.6 % 0.3 % 1.3 %
Public 10.9 % 0.5 % -2.9 %

Price % 1M 3M 12M
Absolute 11.4 % 30.6 % 32.7 %
Vs Industry -4.4 % -19.3 % -23.9 %
Thermax 21.3 % 38.4 % 52.9 %
Triveni Turbine 32.1 % 64.9 % 74.3 %
Consolidated Quarterly EPS forecast
Rs/Share 1Q 2Q 3Q 4Q
EPS (14A) 4.4 2.3 1.7 4.2
EPS (15E) 1.6 0.9 0.0 4.3
TD Power Systems (TDPS) has delivered 999%/2% QoQ/YoY EPS and was 14%
below our estimates due to losses in EPC division on account of project
delays. We remain positive on 30%+ growth for Manufacturing Division as
well as steady contribution of exports in FY15E. We expect the shoots of
recovery in domestic capex to be apparent by 1H15 and actual order inflows
and capex to begin in 2H15 We upgrade to TRADE Rating with a Mar15
Target Price (TP) of Rs. 318/share at 22x FY15E EPS compared to earlier
Mar15 TP of Rs. 203/share.
Distinct improvement in Manufacturing Division neutralized by losses of
EPC division: Manufacturing Division witnessed a turnaround with revenues
of Rs. 1,060 mn (+41%/+23% on QoQ/YoY basis) at impressive EBITDA margin
of 17%. The TG Division also performed better than expected with revenues
of Rs. 216 mn (+203%/-71% on QoQ/YoY basis) at EBITDA margin of 18%.
However, project delays and order cancellations due to changes of scope
and non-availability of financing has led to unabsorbed overheads and also
affected the overall performance.
Continue to remain positive on ~30% CAGR in Manufacturing Revenues
from FY15E to FY17E: We expect the manufacturing division to do well
across steam, hydro, wind and diesel divisions with ramp up of key export
clients and bottoming out of the domestic market. The new 2 pole facility
will also see increased order flows once the medium sized IPPs receive
clarity on fuel and financing. We expect the Manufacturing Division to
deliver FY15E/FY16E revenues of Rs. 3.3 bn/Rs. 4.2 bn along with an
improvement in the EBITDA margins to 15-18% in FY15E/FY16E. TDPS
continues to guide that the Projects Division will be closed and expects the
EPC division to recover with pick up in domestic capex.
Upgrade to TRADE on better visibility and estimate upgrades: We upgrade
to TRADE due to better visibility of ramp up in export orders and evident
rise in expectation related to recovery of domestic capex cycle across
Capital Goods and Manufacturing Segments. Order delays and rupee
appreciation beyond Rs. 55/share are the key risks to our estimates.
Change in Estimates
Current
Change from
previous (%)
Rs Mn FY15E FY16E FY15E FY16E
Sales 5,536 7,053 -12.6% 2.5%
EBITDA 691 1,135 -10.9% 20.6%
PAT 480 816 -14.5% 15.7%
EPS 14.43 24.54 -14.6% 15.8%


Consolidated Financials
Rs. Mn YE Mar FY14A FY15E FY16E FY17E
Sales 4,802 5,536 7,053 7,594
EBITDA 198 691 1,135 1,595
Depreciation 150 192 188 184
Interest Expense 36 30 19 18
Other Income 341 250 295 330
Reported PAT 224 480 816 1,149
Recurring PAT 224 480 816 1,149
Total Equity 5,165 5,556 6,292 6,337
Gross Debt 413 251 188 188
Cash 2,151 2,733 3,191 3,318
Rs Per Share FY14A FY15E FY16E FY17E
Earnings 6.7 14.4 24.5 34.6
Book Value 155 167 189 191
Dividends 0.0 2.3 3.0 19.8
FCFF -26.7 26.8 19.6 37.4
P/E (x) 46.3 21.6 12.7 9.0
P/B (x) 2.0 1.9 1.6 1.6
EV/EBITDA (x) 44.5 11.6 6.6 4.6
ROE (%) 4 % 9 % 14 % 18 %
Core ROIC (%) 1 % 9 % 20 % 17 %
EBITDA Margin (%) 4 % 12 % 16 % 21 %
Net Margin (%) 5 % 9 % 12 % 15 %
TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 2 of 10
Consolidated Quarterly Results Table
4Q14 4Q14E 3Q14 4Q13
% Change
Comments
4Q14E 3Q14 4Q13
Net Sales 1,831 1,850 1,223 1,765 -1% 50% 4%



Cost of Raw Material 1,396 1,350 917 1,359 3% 52% 3%
Employee expenses 151 135 151 131 12% 0% 16%
Selling & Admin expenses 121 139 114 116 -13% 6% 4%

Total Expenditures 1,669 1,624 1,182 1,606 3% 41% 4%

EBITDA 162 226 41 159 -28% 293% 2%
Depreciation 40 38 39 35 6% 4% 17%

EBIT 122 188 2 124 -35% 5051% -2%
Interest 11 6 10 8 97% 19% 51%
Other Income 58 66 25 101 -13% 132% -43%

PBT 168 248 18 218 -32% 844% -23%

Tax 26 83 16 78 -68% 59% -67%

PAT before MI & Associates 142 166 1 140 -14% 9920% 2%
Minority Interest 0 0 0 0
Profit from Assoc. 0 0 0 0
Recurring PAT 142 166 1 140 -14% 9920% 2%
Extraordinaries 0 0 0 0
Reported PAT 142 166 1 140 -14% 9920% 2%
EPS (Rs) 4.3 5.0 0.0 4.2 -14% 9920% 2%
EBITDA Margin 9% 12% 3% 9% -336 bps 547 bps -16 bps
EBIT Margin 7% 10% 0% 7% -350 bps 645 bps -40 bps
PBT Margin 9% 13% 1% 12% -423 bps 773 bps -316 bps

PAT Margin 8% 9% 0% 8% -118 bps 765 bps -17 bps
TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 3 of 10
Tax Rate 15% 33% 92% 36% -1782 bps -7656 bps -2024 bps
Key Segmental Details

Manf- Revenues (in Rs.mn) 1,060 750 861 41% 23%
Manf- PBIT (%) 17% 16% 15% 95 bps 181 bps
TG Island- Revenues (in Rs.mn) 216 71 746 203% -71%
TG Island- PBIT (%) 18% -72% 11% 9010 bps 729 bps
BTG Island- Revenues (in Rs.mn) 669 419 231 60% 189%
BTG Island- PBIT (%) -1% -6% 17% 495 bps -1824 bps









































TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 4 of 10
Company Snapshot
How we differ from Consensus

- Equirus Consensus % Diff Comment
EPS
FY15E 14.4 15.0 -3 %
FY16E 24.5 19.1 28 %
Sales
FY15E 5,536 6,336 -13 %
FY16E 7,053 6,880 3 %
PAT
FY15E 480 561 -14 %
FY16E 816 705 16 %
Our Key Investment arguments:
Improvement in Execution, Order Inflows, Expansion in EBITDA Margins

Key Assumptions
Divisional wise assumptions FY14 FY15E FY16E FY17E
Manufacturing- revenues (in Rs.mn) 3250.0 4338.6 5724.9 7594.3
Revenue growth (%, Y/Y) 6% 33% 32% 33%
TG Island division- revenues (in Rs.mn) 597.6 544.0 544.0 0.0
Revenue growth (%, Y/Y) -60% -9% 0% -100%
BTG Island division- revenues (in Rs.mn) 3847.6 4882.6 6268.9 7594.3
Revenue growth (%, Y/Y) -16% 27% 28% 21%

Risk to Our View
Delays in regulatory approvals to set up captive power plants resulting in slowdown in
order flow for TDPS. Volatile raw material movement might result in lower profitability
as TDPS enters into fixed price contracts.

Key Triggers
Expanding the generator product ranges.
Materialization of export orders from Various OEMs
Sensitivity to Key Variables % Change % Impact on EPS
Increase in raw material cost 5 % -14 %
- - -
- - -
DCF Valuations & Assumptions
Rf Beta Ke Term. Growth Debt/IC in Term. Yr
8.0 % 1.0 14.0 % 3.0 % 10.0 %

- FY15E FY16E FY17-19E FY20-24E FY25-29E
Sales Growth 15 % 27 % 10 % 5 % 4 %
NOPAT Margin 6 % 9 % 6 % 6 % 6 %
IC Turnover 1.65 2.50 3.23 3.96 4.00
RoIC 9.4 % 20.4 % 19.2 % 24.0 % 24.5 %

Years of strong growth 1 1 5 10 15
Valuation as on date (Rs) 187 266 250 258 259
Valuation as of 31st Mar '15 196 279 262 270 271
Based on DCF, assuming 10 years of 5% CAGR growth and 24% average ROIC, we derive
current fair value of Rs. 259 and 31
st
March 2015 fair value of Rs. 271.

Company Description:
TD Power Systems Limited (TDPS), incorporated in 2001, is the leading manufacturers of
AC Generators in the range of 1MW to 52 MW for all the fuels. TDPS also installs and
commissions turbine generator (TG) island projects.
DF Power Systems Private Limited (DFPS), TDPS subsidiary incorporated in 2007, executes
boiler-turbine generator (BTG) island projects for steam turbine power plants for the
ranges 52 MW up to 150 MW.

Comparable valuation
Mkt Cap
Rs. Mn.
Price
Target
Target
Date
EPS P/E BPS P/B RoE Div Yield
Company Reco. CMP FY14A FY15E FY16E FY14A FY15E FY16E FY14A FY15E FY14A FY15E FY16E FY14A FY15E
TD Power Systems LONG 312 10,370 318 31st Mar' 15 6.7 14.4 24.5 46.3 21.6 12.7 155.4 1.9 4 % 9 % 14 % 0.0 % 0.7 %
Thermax NR 912 108,694 NR NR 26.9 23.3 30.4 34.0 39.1 30.0 156.8 5.3 18 % 14 % 16 % 0.8 % 0.8 %
Triveni Turbines TRADE 99 32,658 50 31st Mar'15 2.5 3.1 3.6 39.6 32.4 27.6 5.8 12.4 47 % 44 % 40 % 0.7 % 0.8 %
TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 5 of 10
Key Highlights from Concall and management interaction

Performance of EPC Division:
Annual overhead of Rs. 200 mn
Dalmia and Shree Cement orders are getting completed, pending order book of Rs.
1.2 bn
Expect margins of 7% and need business of Rs. 3 bn to justify the over heads
That implies a rolling order requirement of ~75 MW
Expect a significant pick up in small and medium IPPs with the coal reforms and infra
focus of the new government
The current EPC order book will be finished by end of this CY.

Manufacturing Division:
Can do revenues of Rs. 4 bn from existing capacity and another Rs. 3.5 bn from the
other capacity Up to 55 MW
Can expect revenues of Rs. 1.5 bn from the new 55 - 200 MW capacity
The new capacity caters to industrial machines and will come to life when Modi will
make clearance for coal blocks
All guys on sidelines will take contracts, take coal and start operations, this segment
will start seeing serious growth prospects in 2H15 and beyond
Could see revival in size of domestic market this year.

Export Orders:
~70% of pending order book is exports + deemed exports
Exports is expected to grow to ~50% of the manufacturing division revenues this
year.
This is without factoring any recovery in domestic business.

Overall OEM Global Market Potential:
Wind market is USD 5 bn
Hydro market is USD 6-7 bn
Steam market is USD 3-4 bn
Gas market is USD 3-4 bn
The above markets are for OEMs and the management mentioned on the concall that
the Steam and Gas Turbine markets are USD 1 bn, Hydro Market is USD 1 bn and the
Wind Market is also a multi bn dollar market. OEM Majors like Siemens, ABB, Hitachi
and Toshiba dominate the global markets. One can expect TD Power to gradually
scale up its outsourcing activity in these markets.~40%

Progress with OEMs:
Wind:
Expect robust activity due to favourable domestic policies for wind development

Hydro:
Voith continues to do good,
Should easily growth at 20% based on current visibility

Gas division:
GE Janbacher is the main hope of this division

Diesel:
Cummins, Caterpillar, Powerica and Jackson are the main customers

Thermal division:
Overall market has been dormant, but can say that it has bottomed out
Accounted for 45-50% of the production last year,
Domestic market has dropped
Bhubaneshwar Power: 2 machines got pushed to this year, Siemens is the customer,
will pay within time.

Challenges Ahead:
Booking orders: Linked to economic recovery and improvement in investor interest,
Infrastructure scale up to handle execution: They have additional capacity available
but issue will be getting the subcontracted capacity in place, this could take a
couple of quarters after order flow improves. They subcontract small time
facbrication and sheet metal jobs, these are C-class and D-class items, and are done
by small guys where overnight stepping up of production is not easy
Financing of these projects will also take time and this will be an important factor
that will determine the pace of revenue ramp up















TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 6 of 10

Consolidated Quarterly Earnings Forecast and Key Drivers
Rs in Mn 1Q14A 2Q14A 3Q14A 4Q14A 1Q15E 2Q15E 3Q15E 4Q15E 1Q16E 2Q16E 3Q16E 4Q16E FY14A FY15E FY16E FY17E
Revenue 726 1,022 1,223 1,831 1,218 1,273 1,495 1,550 1,552 1,622 1,904 1,975 4,802 5,536 7,053 7,594
Cost of Raw Material 495 709 917 1,396 865 905 1,062 1,101 1,073 1,121 1,316 1,365 3,516 3,933 4,875 4,936
Employee expenses 152 152 151 151 101 106 124 129 116 121 142 147 607 459 525 532
Selling & Admin expenses 111 134 114 121 100 104 122 127 114 119 140 145 481 452 517 532


EBITDA -32 27 41 162 152 159 187 193 250 261 306 318 198 691 1,135 1,595
Depreciation 35 36 39 40 48 48 48 48 47 47 47 47 150 192 188 184
EBIT -67 -8 2 122 104 111 139 146 202 214 260 271 49 499 947 1,411
Interest 7 8 10 11 9 7 7 6 6 4 4 4 36 30 19 18
Other Income 159 99 25 58 57 61 66 66 69 71 76 79 341 250 295 330
PBT 85 82 18 168 152 164 197 206 266 281 331 345 354 719 1,223 1,723
Tax 33 54 16 26 51 55 66 69 89 93 110 115 130 240 407 574
PAT bef. MI & Assoc. 52 29 1 142 101 110 131 138 177 187 221 230 224 480 816 1,149
Minority Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Profit from Assoc. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Recurring PAT 52 29 1 142 101 110 131 138 177 187 221 230 224 480 816 1,149
Extraordinaries 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Reported PAT 52 29 1 142 101 110 131 138 177 187 221 230 224 480 816 1,149
EPS (Rs) 1.56 0.86 0.04 4.28 3.05 3.30 3.95 4.14 5.33 5.63 6.64 6.93 6.74 14.43 24.54 34.58
Key Drivers

Generator- volumes (in units) - - - - - - - - - - - - 298 369 456 564
Generator- revenues (in Rs.mn) - - - - - - - - - - - - 3,250 4,339 5,725 7,594
TG Island- revenues (in Rs.mn) - - - - - - - - - - - - 598 544 544 0
BTG Island- revenues (in Rs.mn) - - - - - - - - - - - - 933 653 784 0
- - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - -
Sequential Growth (%)

Revenue -59 % 41 % 20 % 50 % -33 % 5 % 17 % 4 % 0 % 5 % 17 % 4 % - - - -
Cost of Raw Material -64 % 43 % 29 % 52 % -38 % 5 % 17 % 4 % -3 % 5 % 17 % 4 % - - - -
EBITDA -120 % -185 % 51 % 293 % -6 % 5 % 17 % 4 % 29 % 5 % 17 % 4 % - - - -
EBIT -154 % -88 % -128 % 5,051 % -15 % 7 % 25 % 5 % 39 % 6 % 21 % 4 % - - - -
Recurring PAT -63 % -44 % -95 % 9,920 % -29 % 8 % 20 % 5 % 29 % 6 % 18 % 4 % - - - -
EPS -63 % -44 % -95 % 9,920 % -29 % 8 % 20 % 5 % 29 % 6 % 18 % 4 % - - - -
Yearly Growth (%)

Revenue -53 % -37 % 28 % 4 % 68 % 25 % 22 % -15 % 27 % 27 % 27 % 27 % -18 % 15 % 27 % 8 %
EBITDA -123 % -75 % -54 % 2 % -570 % 480 % 352 % 19 % 64 % 64 % 64 % 64 % -60 % 249 % 64 % 41 %
EBIT -160 % -111 % -96 % -2 % -255 %
-1,426
%
5,772 % 20 % 95 % 93 % 87 % 86 % -87 % 925 % 90 % 49 %
Recurring PAT -64 % -62 % -97 % 2 % 96 % 282 % 9,157 % -3 % 75 % 71 % 68 % 67 % -40 % 114 % 70 % 41 %
EPS -64 % -62 % -97 % 2 % 96 % 282 % 9,157 % -3 % 75 % 71 % 68 % 67 % -46 % 114 % 70 % 41 %
Margin (%)

EBITDA -4 % 3 % 3 % 9 % 12 % 12 % 12 % 12 % 16 % 16 % 16 % 16 % 4 % 12 % 16 % 21 %
EBIT -9 % -1 % 0 % 7 % 9 % 9 % 9 % 9 % 13 % 13 % 14 % 14 % 1 % 9 % 13 % 19 %
PBT 12 % 8 % 1 % 9 % 12 % 13 % 13 % 13 % 17 % 17 % 17 % 17 % 7 % 13 % 17 % 23 %
PAT 7 % 3 % 0 % 8 % 8 % 9 % 9 % 9 % 11 % 12 % 12 % 12 % 5 % 9 % 12 % 15 %
TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 7 of 10

Consolidated Financials
P&L (Rs Mn) FY14A FY15E FY16E FY17E

Balance Sheet (Rs Mn) FY14A FY15E FY16E FY17E

Cash Flow (Rs Mn) FY14A FY15E FY16E FY17E
Revenue 4,802 5,536 7,053 7,594 Equity Capital 332 332 332 332 PBT 354 719 1,223 1,723
Op. Expenditure 4,604 4,845 5,918 6,000 Reserve 4,832 5,223 5,959 6,005 Depreciation 150 192 188 184
EBITDA 198 691 1,135 1,595 Networth 5,165 5,556 6,292 6,337 Others 0 0 0 0
Depreciation 150 192 188 184 Long Term Debt 413 251 188 188 Taxes Paid 130 240 407 574
EBIT 49 499 947 1,411 Def Tax Liability 185 147 110 110 Change in WC -790 225 -139 -246
Interest Expense 36 30 19 18 Minority Interest 0 0 0 0 Operating C/F -416 897 864 1,087
Other Income 341 250 295 330 Account Payables 674 754 935 947 Capex -495 -26 -226 143
PBT 354 719 1,223 1,723 Other Curr Liabi 1,201 1,384 1,763 1,899 Change in Invest 0 0 0 0
Tax 130 240 407 574 Total Liabilities & Equity 7,638 8,092 9,288 9,481 Others 0 0 0 0
PAT bef. MI & Assoc. 224 480 816 1,149 Net Fixed Assets 2,905 2,902 2,905 2,911 Investing C/F -495 -26 -226 143
Minority Interest 0 0 0 0 Capital WIP 0 0 0 0 Change in Debt 142 -162 -63 0
Profit from Assoc. 0 0 0 0 Others 17 -147 -111 -444 Change in Equity 0 0 36 -334
Recurring PAT 224 480 816 1,149

Inventory 534 736 945 1,144 Others 16 -127 -153 -770
Extraordinaires 0 0 0 0 Account Receivables 1,184 1,365 1,739 1,873 Financing C/F 158 -289 -180 -1,104
Reported PAT 224 480 816 1,149 Other Current Assets 847 503 619 679 Net change in cash -754 582 459 126
FDEPS (Rs) 6.7 14.4 24.5 34.6 Cash 2,151 2,733 3,191 3,318 RoE (%) 4 % 9 % 14 % 18 %
DPS (Rs) 0.0 2.3 3.0 19.8 Total Assets 7,637 8,092 9,287 9,481

RoIC (%) 4 % 9 % 13 % 18 %
CEPS (Rs) 11.2 20.2 30.2 40.1 Non-cash Working Capital 690 465 604 851

Core RoIC (%) 1 % 9 % 20 % 17 %
FCFPS (Rs) -26.7 26.8 19.6 37.4 Cash Conv Cycle 52.5 30.7 31.3 40.9 Div Payout (%) 0 % 19 % 14 % 67 %
BVPS (Rs) 155.4 167.2 189.3 190.7 WC Turnover 7.0 11.9 11.7 8.9 P/E 46.3 46.3 46.3 46.3
EBITDAM (%) 4 % 12 % 16 % 21 % FA Turnover 1.7 1.9 2.4 2.6 P/B 2.0 2.0 2.0 2.0
PATM (%) 5 % 9 % 12 % 15 % Net D/E -0.3 -0.4 -0.5 -0.5 P/FCFF -11.7 -11.7 -11.7 -11.7
Tax Rate (%) 37 % 33 % 33 % 33 % Revenue/Capital Employed 0.9 1.0 1.2 1.2 EV/EBITDA 44.5 44.5 44.5 44.5
Sales Growth (%) -18 % 15 % 27 % 8 %

Capital Employed/Equity 1.1 1.1 1.1 1.1

EV/Sales 1.8 1.8 1.8 1.8
FDEPS Growth (%) -46 % 114 % 70 % 41 %

Dividend Yield (%) 0.0 % 0.7 % 1.0 % 6.3 %





TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 8 of 10
Historical Consolidated Financials
P&L (Rs Mn) FY11A FY12A FY13A FY14A

Balance Sheet (Rs Mn) FY11A FY12A FY13A FY14A

Cash Flow (Rs Mn) FY11A FY12A FY13A FY14A
Revenue 8,637 10,316 5,871 4,802 Equity Capital 244 332 332 332 PBT 856 986 644 354
Op. Expenditure 7,743 9,397 5,376 4,604 Reserve 1,629 4,266 4,608 4,832 Depreciation 80 91 124 150
EBITDA 894 919 495 198 Networth 1,873 4,598 4,941 5,165 Others -8 12 0 0
Depreciation 80 91 124 150 Long Term Debt 773 343 270 413 Taxes Paid 313 326 227 130
EBIT 814 827 371 49 Def Tax Liability 100 123 170 185 Change in WC -18 -821 333 -790
Interest Expense 67 66 34 36 Minority Interest 0 0 0 0 Operating C/F 597 -58 875 -416
Other Income 109 224 308 341 Account Payables 1,330 1,581 1,323 674 Capex -128 -644 -892 -495
PBT 856 986 644 354 Other Curr Liabi 2,617 2,209 1,716 1,201 Change in Invest 0 0 0 0
Tax 289 326 227 130 Total Liabilities & Equity 6,693 8,854 8,419 7,638 Others 103 0 0 0
PAT bef. MI & Assoc. 567 659 417 224 Net Fixed Assets 1,132 1,315 1,998 2,905 Investing C/F -25 -644 -892 -495
Minority Interest 0 0 0 0 Capital WIP 20 126 162 0 Change in Debt 76 -430 -73 142
Profit from Assoc. 0 0 0 0 Others 103 367 416 17 Change in Equity 14 2,131 3 0
Recurring PAT 567 659 417 224 Inventory 777 830 530 534 Others -20 -55 -31 16
Extraordinaires 0 -12 0 0 Account Receivables 2,040 2,402 1,778 1,184 Financing C/F 69 1,646 -100 158
Reported PAT 567 671 417 224 Other Current Assets 542 792 630 847 Net change in cash 642 944 -117 -754
EPS (Rs) 17.0 19.8 12.6 6.7 Cash 2,078 3,022 2,905 2,151

RoE (%) 36 % 20 % 9 % 4 %
DPS (Rs) 2.5 2.0 2.0 0.0

Total Assets 6,693 8,854 8,419 7,637

RoIC (%) 25 % 18 % 8 % 4 %
CEPS (Rs) 26.5 22.6 16.3 11.2 Non-cash Working Capital -587 234 -100 690 Core RoIC (%) 62 % 35 % 10 % 1 %
FCFPS (Rs) 25.3 -19.8 0.2 -26.7 Cash Conv Cycle -24.8 8.3 -6.2 52.5 Div Payout (%) 13 % 12 % 19 % 0 %
BVPS (Rs) 56.4 138.3 148.7 155.4 WC Turnover -14.7 44.2 -58.9 7.0

P/E 18.3 15.7 24.8 0.0
EBITDAM (%) 10 % 9 % 8 % 4 % FA Turnover 7.5 7.2 2.7 1.7 P/B 5.5 2.3 2.1 0.0
PATM (%) 7 % 6 % 7 % 5 % Net D/E -0.7 -0.6 -0.5 -0.3 P/FCFF 12.3 12.3 12.3 12.3
Tax Rate (%) 34 % 33 % 35 % 37 % Revenue/Capital Employed 5.1 4.2 1.5 0.9 EV/EBITDA 10.4 8.6 16.3 0.0
Sales growth (%) 17 % 19 % -43 % -18 %

Capital Employed/Equity 1.5 1.5 1.2 1.1

EV/Sales 1.1 1.1 1.1 1.1
FDEPS growth (%) 40 % 16 % -37 % -46 %

Dividend Yield (%) 0.8 % 0.6 % 0.6 % 0.0 %
TTM P/E v/s 2 yr forward EPS growth TTM EV/EBITDA v/s 2 yr forward EBITDA growth TTM P/B vs. 2 yr forward RoE

TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 9 of 10
Equirus Securities
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Research Analysts Sector/Industry Email 91-79-40504050 Equity Sales E-mail 91-22-26530600
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Devam Modi Power & Infrastructure devam@equirus.com 91-79-40504016 Vishad Turakhia vishad.turakhia@equirus.com 91-22-26530633
Dhawal Dama FMCG, Mid Caps dhaval.dama@equirus.com 91-79-40504018 Dinesh Bajaj dinesh.bajaj@equirus.com 91-22-26530635
Maulik Patel Oil and Gas maulik@equirus.com 91-79-40504019 Dealing Room E-mail 91-79-40504003
Shivam Gupta Technology shivam.gupta@equirus.com 91-79-40504020 Ashish Shah ashishshah@equirus.com 91-79-40504004
Associates

E-mail 91-79-40504050 Darshit Shah darshitshah@equirus.com 91-79-40504005
Yash Mehta yash.mehta@equirus.com 91-79-40504028 Sandip Amrutiya sandipamrutiya@equirus.com 91-79-40504003
Niranjan
Srinivasaramanujan
niranjan.s@equirus.com 91-79-40504023 Compliance Officer E-mail 91-22-26530600
Raj Kantawala raj.kantawala@equirus.com 91-79-40504026 Rahul Joshi rahul@equirus.com 91-22-26530600
Sanket Chheda sanket.chheda@equirus.com 91-79-40504014

Umesh Raut umesh.raut@equirus.com 91-79-40504029

Urvija Shah urvija.shah@equirus.com 91-79-40504027

Karan Uppal karan.uppal@equirus.com 91-79-40504032

Meet Chande meet.chande@equirus.com 91-79-40504013
Rating & Coverage Definitions:
Absolute Rating
LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap > Rs 5 billion and ATR
>= 20% for rest of the companies
SHORT: ATR >= negative 5% over investment horizon
TRADE: Stocks that do not meet the criteria for either LONG or SHORT
Relative Rating
OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon
BENCHMARK: likely to perform in line with the benchmark
UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon

Target Price and Investment Horizon
Target Price is a point value for stocks with Absolute rating of LONG or SHORT and a range value for stocks rated
TRADE. Investment Horizon is set at a minimum 3 months to maximum 15 months with target date falling on last
day of a calendar quarter.

Lite vs. Regular Coverage vs. Spot Coverage
We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally,
we would have access to the company and we would maintain detailed financial model for Regular coverage
companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our
ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot
coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target
Registered Office:

Equirus Securities Private Limited
4th Floor, A Wing,
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Mumbai-400051.

Tel. No: +91 (0)22 2653 0600
Fax No: +91- (0)22 2653 0601
Corporate Office:
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Satyam Corporate Square,
Behind Rajpath
Club, Bodakdev, Ahmedabad 380 059
Tel. No: +91 (0)79 - 4050 4050
TD Power Systems Ltd. Absolute Trade Relative NR 3% ATR in 10 months

May 26, 2014 Analyst: Devam Modi devam@equirus.com (+91-90999 87467 +91 79-40504016) Page 10 of 10
price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion. Fax No: +91 (0)79 4050 4060

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