TECHNO ELECTRIC & ENGINEERING COMPANY LIMITED
Techno Electric and Engineering Company Ltd. (TEECL) is at the forefront of India’s power-infrastructure sector. It has more than 40 years of rich experience in the power sector EPC (Engineering, Procurement, and Construction). Company is leading in EPC services across power generation, transmission, and distribution catering to diverse industries. Beyond core EPC offerings, company has been focusing on future ready and high-growth segments, offering Flue Gas Desulphurisation (FGD), Advanced Metering Infrastructure (AMI) and end-to-end data centre solutions. More than 450 Projects have been completed since inception and company has more than 400 employees.
Major Domains of Operations
Power Generation
• Turnkey solutions to captive power plants.
• Balance of Plant.
• Flue Gas Desulphurization (FGD).
FGD is a Key Focus Area in Indian Power Sector The implementation of Flue Gas Desulphurization systems in India’s power sector is a significant focus to reduce Sulphur dioxide emissions. The target is to achieve FGD installations for a total capacity of 211.52 GW by 2026. Of this target, approximately 9.28 GW of FGD capacity has already been installed, and bids for 100.43 GW have been awarded. Bids for additional installations are in various stages before being awarded. These FGD systems are crucial for coal-fired thermal power plants to control SO2 emissions and meet the stringent emission norms set by the Ministry of Environment, Forest & Climate Change. The adoption of FGD technology plays a vital role in reducing the environmental impact of coal-based power generation in India.
Transmission and Distribution
• EHV substations up to 765 kV (AIS/GIS)
• STATCOM installation up to 250 MVaR Distribution
• Advanced Metering Infrastructure
• Distribution systems management
• Revamp Distribution Sector Scheme
• Rajiv Gandhi Gramin Vidyutikaran Yojna
Industrial Sector
• Power distribution systems to power intensive industries
• Offsite piping systems
• Oil handling plant process industries
• Naphtha and Diesel-based system for turbine based power plant
• Water and allied system
• Fire protection system
• Plant electrical and illumination system
Green Power
Currently possess a total wind energy capacity of 21 MW, with assets located in both Karnataka and Tamil Nadu.
Advanced Metering Infrastructure
Govt. of India plans to grow smart meters from 1 mn to 250 mn smart meters by 2024. Till now total smart meters sanctioned for installation is 229.8 mn. Out of the above, around 6.77 mn meters have been installed till now, and rest are under various stages of implementation. Techno has received orders for 2 lakh meters at Jammu & Kashmir. Techno has also got an order worth Rs 338 crores for 2.5 lakh smart meters under the DBFOT model. Techno is bidding for various projects for 40 Lakh meter projects worth Rs 4500 crores.
Data Centres
TEECL data centre project in Siruseri, Chennai has completed 50% of the equipment ordering and civil works. With a capital expenditure of ₹ 1,400 crores invested, it is on track to meet target for project completion and expect testing and operations to commence in near future. The data centre industry in India is undergoing significant growth and holds immense potential for the future. As of March 2022, there are 138 existing data centres, with 11 of them being third-party operated. Looking ahead, the number of data centres is projected to reach 183 by December 2025, with 24 of them being third party operated. This expansion signifies the increasing demand for data centres and the industry’s positive trajectory. The data centre sector in India presents promising opportunities for investment and development, driven by factors such as the rise in e-commerce adoption, cloud services, government initiatives, and the advent of 5G technology. Several market enablers are driving the growth of the data centre industry in India. The increased usage of OTT platforms, social media, and gaming is fuelling the demand for data centres. Industries adopting deep technology are generating vast volumes of data, further driving the need for computing resources. In addition, factors such as the exponential rise in e-commerce adoption, the adoption of cloud services, the government’s push towards ‘Digital India’, and the advent of 5G technologies are all contributing to the industry’s growth.
Latest Development:
The Company issued a press release on 22.11.2023 stating that Techno Electric & Engineering Company Limited (“TECHNO”) and Keppel Data Centres (India) Private Limited (“KDCI”) have entered into a non-binding memorandum of understanding (MOU) to formalise the parties’ intentions to explore potential collaboration in a greenfield development of a data centre campus in India. Keppel Data Centres is the data centre arm of Keppel Corporation, a Singapore headquartered global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of energy & environment, urban development and connectivity. Keppel Data Centres has a track record of more than a decade in owning, developing and managing high quality carrier-neutral data centre facilities that support mission-critical computer systems. Strongly committed to environmentally sustainable business practices, Keppel Data Centres offers a comprehensive range of wholesale, build-to-suit and co-location solutions built to the high industry standards. 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.
Key Financial Highlights- H1 FY24
– Revenue from operations for H1FY24 stood at ₹ 736.21 crore against 331.27 crore last year, up 122 % (YoY).
-PBT for H1FY24 at ₹ 146.62 crore against 81.76 crore last year, up 79.32 % (YoY). Entire FY23 PBT was 96.60 crore.
-PAT for H1FY24 stood at ₹ 101.61 crore against 57.52 crore last year, higher by 76.65 % (YoY).Entire FY23 PAT was 96.60 crore.
– EPS for H1FY24 is ₹ 9.2 per share against 8.58 last year of a face value of ₹ 2 each.
Major Risk Factors
The Company’s business may not be relevant in the coming years.
Decline in the quality of the products of the Company may lead to fall in sales.
Increased competition could affect profitability.
Increase in raw material prices could impact viability.