Techno Electric & Engineering: Reports operationally reasonable Q2FY22 performanceTECHNOE - 279 Change: 12.70 (4.76 %)
News: Techno Electric Engineering (TEEC) reported standalone revenues at Rs.273.5 crore with a growth of 6.4% on YoY basis. EPC and Energy (Wind Power) segment contributed ~82% and 18%, respectively. Absolute EBITDA came in at Rs.85.4 crore growing by 13.4% on YoY basis. Overall EBITDA margin came in at 31.2%, improving by 190bps, on YoY basis aided by relatively higher contribution from energy segment. Consequently, PAT came in at Rs.63.5 crore which de-grew by 21% on YoY basis partly impacted by much lower other income which de-grew by 69.8%, YoY to Rs.10.3 crore.
Views: TEEC reported reasonable revenues aided by higher contribution from energy segment amid challenges and higher EBITDA margins is a result of change in business mix. TEEC’s balance sheet continues to remain healthy with zero debt and decent cash balance. Overall, we foresee entry into new verticals like EPC in data centre and efficient utilisation of wind power in data centre as a positive trigger for the stock in the long term.