Riding on higher sales, Techno Electric and Engineering Company Ltd (TEECL), posted 24 per cent rise in its consolidated net profit at Rs 31 crore for the quarter ended June 30, against Rs 25 crore during the corresponding period last year.
Net sales grew by 19 per cent to Rs 189 crore. On a standalone basis, however, the company's net profit dropped by about eight per cent to Rs 22 crore. The dip in the standalone net profit was mainly on account of a lower other income during the period under review, according to Mr Pradeep Lohia, President, Finance, Techno Electric.
“The other income during the first quarter this year was Rs 3.5 crore (Rs 7.16 crore). Last year we were sitting on cash flows of about Rs 500 crore, which was not available to us this year as we have deployed those funds in the business,” he said.
The engineering, procurement and construction (EPC) segment — which accounts for 85 per cent of its total revenues — grew by 13 per cent to Rs 162 crore. The renewable energy segment grew by 74 per cent to Rs 28 crore.
Achievement
During the quarter, TEECL achieved financial closure for its Phase-I (101.4 MW) wind energy expansion project. IFC came in as an equity partner in TEECL's subsidiary, Simran Wind Project, investing $5 million for 3.38 per cent stake. “The project is scheduled to be complete by mid-August of the current fiscal. Close to 56.1 MW out of the 101.4 MW has already been commissioned,” Mr Lohia said.
Transmission project bagged by the company in consortium under PPP (public-private partnership) model in Jhajjar, Haryana was on schedule and would be commissioned by December 2011; he said and added, “We will bid for more such projects coming up in Rajasthan and Tamil Nadu.”
TEECL along with its subsidiary Simran owns 151.55 MW of wind energy assets in the country and plans to expand capacity to 300 MW by 2012 and 1,250 MW by 2017.