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companylogoTechno Electric & Engineering Company Ltd

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BSE Code : 542141 | NSE Symbol : TECHNOE | ISIN : INE285K01026 | Industry : Engineering - Turnkey Services |


Chairman's Speech

A Year of Resilience

In FY 2022-23, our revenue from operations stood at Rs. 10,451 million, against Rs. 10,739 million in the previous year. EBITDA for the Company stood at Rs. 1,808 million and Profit After Tax (PAT) for the year was Rs. 2,184 million, down from Rs. 2,603 million FY 2021-22.

Revenue from EPC was at Rs. 9,557 million, with an EBITDA of Rs. 1,128 million. Regarding other income, it was at Rs. 1,421 million compared to Rs. 1,500 million the FY 2021-22.

I am delighted to share that our current cash and cash equivalent investment values have reached an all-time high of approximately Rs. 15,000 million. This growth came after our successful buyback of Rs. 700 million and dividend payout of Rs. 220 million last year. To reward our shareholders, we have declared a dividend of Rs. 6 per share for the current year. Our prudent financial decisions and strong cash flows have strengthened our financial position, enabling us to pursue growth opportunities confidently.

Strong Growth Prospects across Diverse Segments

With a robust order book providing revenue visibility for 24 months, we ensure stability and predictability for shareholders. A diversified revenue-mix encompassing four high- growth segments: transmission, Flue Gas Desulphurisation (FGD), Advanced Metering Infrastructure (AMI), and the rapidly expanding data centres market, drive our success. This strategic positioning empowers us for accelerated growth and promising opportunities ahead.

In the transmission segment, we have already secured a substantial order book of Rs. 14,334

In the transmission segment, we have already secured a substantial order book of f 14,334 million, and our vision is set on achieving f 30,000 million over the next 5 years.

million, and our vision is set to achieve Rs. 30,000 million over the next five years. Our focus on the FGD market, where our current order book stands at Rs. 14,592 million, reflects our commitment to excellence. We have our sights on capturing Rs. 5,000 million annually from this segment.

We are also making strides in the smart meter market, where our order book reached Rs. 2,774 million in FY 2022-23. Our ambitious target is to achieve a noteworthy Rs. 10,000-15,000 million annually, showcasing our dedication to exploring new avenues and delivering cutting- edge solutions.

Additionally, our entry into the data centre market with our first project in Chennai aligns with our vision to tap into India's growing digital adoption wave. The data centre in Chennai offers seamless connectivity to cable landing stations and domestic fibre networks, providing us with a robust ecosystem and access to critical infrastructure. Our in-house capabilities in electromechanical works are instrumental in the data centre's successful development. This ultra-scalable and hyper-density data centre, with a capex of approximately Rs. 14,000 million, is progressing as planned, and we expect it to be operational by the end of FY 2023-24.

Looking ahead, we are exploring opportunities to develop more data centres nationwide, with Kolkata being one of the shortlisted cities for similar-sized projects. We actively engage with potential strategic partners and end customers for these ventures. We aim to secure a significant market share in the data centre domain three to five years.

Prioritising Employee Growth and Well-being

At TEECL, we believe that a strong and united workforce is crucial to the growth and sustainability of an organisation. As a peoplecentric organisation, we ensure the safety and well-being of our employees by providing them with a safe and secure work environment. We conduct various safety training programmes to educate and equip our employees with the knowledge and skills to follow best-in-class workplace safety practices. Additionally, we organise comprehensive training programmes to enhance their competencies and help them grow and thrive in their career.

Empowering Communities

As part of our commitment to social responsibility, we actively engage in initiatives to support and uplift marginalised groups in society. We strive to mainstream these groups through various health and education programmes and provide them with opportunities for a brighter

future. As we move forward, we will continue to contribute to the betterment of the communities surrounding our operations.

Way Forward

Looking ahead, the prospects are bright and the growth momentum has just begun. We are focusing on high-growth segments such as FGD, AMI, and data centres, where we see significant growth potential.

The power sector is undergoing reforms with a strong emphasis on ensuring the reliability and availability of supply. We are also gearing up to accommodate renewable power injection of up to 30% in the grid, up from the current 14-15%. With a strengthened portfolio and a clear vision, we are well-positioned to compensate for any losses and perform strongly in the coming years.

Finally, I sincerely thank our valued stakeholders for their continued trust and support. Our commitment to operational excellence, resilient performance, and strategic positioning in growth segments will drive our sustained growth. We look forward to converting challenges into opportunities while delivering sustainable value and growth.

Yours truly

P.P. GUPTA

Chairman and Managing Director

   

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