TD Power Systems Reports Strong Financial Performance Amidst Declining Cash Flow Challenges

TD Power Systems, a microcap player in the heavy electrical equipment sector, has recently undergone a financial trend adjustment. The company reported a positive financial performance for the quarter ending June 2025, although its score has seen a decline over the past three months.
Key metrics highlight the company's strengths, including a remarkable return on capital employed (ROCE) of 26.90%, the highest recorded in its history. Additionally, the company achieved its highest quarterly PBDIT at Rs 68.83 crore and a profit before tax (PBT) less other income of Rs 63.42 crore. The profit after tax (PAT) also showed significant growth, reaching Rs 50.07 crore, a 41.6% increase. Furthermore, net sales peaked at Rs 371.90 crore, indicating robust operational performance.

However, challenges remain, particularly in operating cash flow, which is at its lowest for the year at Rs 6.29 crore, and a declining dividend payout ratio of 12.19%.

In terms of market performance, TD Power Systems has outperformed the Sensex across various time frames, including a notable 334.82% return over three years and an impressive 2407.27% over five years, showcasing its strong market position relative to broader market trends.