Companies

TEECL expects to stabilise growth in the current fiscal

Kolkata | Updated on October 24, 2021

Sees steady pick up in demand from EPC segment

Kolkata-based power infrastructure firm Techno Electric & Engineering Company Ltd (TEECL), which had witnessed a marginal (one per cent) growth in turnover in FY21, is expecting to stabilise growth during the current fiscal.

The company hopes to regain its pre-Covid levels of growth during FY23 backed by a steady pick up in demand from EPC business. It has also recently forayed into data centre industry and plans to build 250 MW data centres across the country in the next five years.

The company, which clocked a turnover of around ₹890 crore in FY21, currently provides end-to-end solutions to customers across the electricity value chain through EPC (engineering, procurement and construction) vertical, asset ownership and operations and maintenance services.

It had registered 11 per cent decline in turnover in FY20 at ₹876 crore (₹989 crore in FY19) due to Covid-induced slowdown.

According to PP Gupta, Managing Director, TEECL, the company is hopeful of doubling its turnover to ₹2,000 crore in the next three years.

“Being an EPC company we did witness some disruptions in operations as each State had its rules and regulation for Covid management. So it has been quite an experience to deal with it. This year is a stabilisation year but next year we should be able to regain the growth which we had lost for the last three years and we should be able to double our topline by 2024-25 to touch ₹2,000 crore,” Gupta told BusinessLine.

The EPC segment contributed 90 per cent to the total revenues and 66 per cent of the total EBIDTA in FY21.

The company had also diversified into providing Flue gas Desulphurisation (FGD) turnkey solutions to captive power plants. It plans to expand the business to “scalable heights” by FY23.

It has bagged an FGD contract for 1X500 MW Bokaro thermal power project of Damodar Valley Corporation at ₹319 crore.

“We came in the business (FGD) four years back when government came out with guidelines on reducing SO2 in gas. We have a Korean partner and we are already executing a project in Bokaro of 500 MW. We are hopeful of bagging projects from state electricity boards, DVC as well as private sector. This segment should add to our topline by ₹750-800 crore in the next three years,” he said.

Data centre business

TEECL, which is looking to build 250 MW data centres across the country in the next five years, also plans to expand its footprint to the APAC region.

It has established a “detailed roadmap” for its data centre business leveraging on its EPC capabilities. It has already commenced the process of setting up its first IT load data centre of 30 MW in Chennai, Tamil Nadu, for an estimated investment of around ₹900 crore. This is expected to be commissioned in FY23.

It is also looking to set up 20 MW edge data centre in Kolkata by FY23. It also plans a data centre at Hyderabad by FY24 and another one at Navi Mumbai by FY25.

Published on October 24, 2021

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