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Published: April 15, 2024
Updated: April 15, 2024

Techno Electric & Engineering Company

Unexecuted order book (Rs 5,441 cr.) at new all-time high

Kolkata-headquartered Techno Electric and Engineering Company is attracting robust order inflows. During the first nine months of fiscal 2024 (April-December 2023), the order intake amounted to Rs 2,738 crore and the unexecuted outstanding order book today stands at Rs 5,441 crore – an all-time high in the history of the company.

Additionally, the company will tap good opportunities in the space of smart meters in the OPEC model, wherein it will absorb the inhouse risk of project development and revenue stabilization. The third leg of the growth opportunity is transmission and mid-assets on a financial IRR basis.

T&D GROWTH

T&D is seeing business from both conventional energy as well as renewable energy as the government is keen on bringing back conventional energy to the extent of 80-90 GW. The company expects TBCB bidding to happen to almost per 50 to 100 gigawatts now. Overall, it expects a total business potential of Rs 40,000 crore per year on the transmission front, of which the station business (other than HVDC) can be around Rs 7,000-8,000 crore. The company expect its transmission business (of Rs 3,000 crore) to ramp up or grow on a YoY basis for the next 3-5 years.

In smart metering, almost 100 million meters are under various stages of award. And around 88% of them may be taken under the RDSS scheme where the government has allocated Rs 3 lakh crore to be spent over the next five years. The company has already bagged orders for 2 million meters and would like to build about two million meters per year over the next five years, so that its share in the market is about 5% in this segment. It expects orders for Rs 2, 000 crore YoY in the metering segment.

L1 includes transmission orders worth Rs 1,100, crore and this is in addition to Rs 1,500 crore of transmission orders it bagged in 9MFY24.

The data centre capacity in the country is currently at 700 MW and is expected to grow to 2 GW by FY26 and to about 5GW by 2030. The Chennai data centre (IT load of 24 MW and 40 MW of grid load) is expected to be ready not later than June 2024. All phases of the project will be completed by March 2025. Mr Gupta is confident of achieving a 250 megawatt capacity in data centres by 2030.

DATA CENTRES

According to him, a lot of interest is coming from specialized partners to enter into JVs for developing data centres in India, and the company is likely to conclude a JV partner deal soon. Capex for the next 5-6 years for the company will be not less than Rs 20,000-25,000 crore (around Rs 10,000 crore for 250 MW of data centre and Rs 10,000 crore for developing 10 million meters in the capex model). A sustainable EBITDA margin will be 13-14%.