Transformers & Rectifiers (India) Limited, a leading manufacturer of transformers, has submitted its monitoring agency report for the quarter ended June 30, regarding funds raised through a Qualified Institutional Placement (QIP). The report, prepared by India Ratings and Research Private Limited, confirms that there has been no deviation from the stated objectives of the QIP.

QIP Details and Fund Utilization

The company successfully raised INR 5,000.00 crore through the QIP conducted from June 10-13, issuing 75,18,796 equity shares at INR 665.00 per share. As of the end of the quarter, the company has utilized INR 193.99 crore, bringing the total utilization to INR 1,939.90 crore. The remaining unutilized amount stands at INR 3,060.10 crore.

Allocation of Funds

The funds raised through the QIP have been allocated for various purposes:

Key Observations

Issue Expenses Overrun

The actual issue expenses exceeded the planned amount by INR 29.93 crore, totaling INR 141.78 crore. This overrun has been ratified and approved by the Board of Directors.

Temporary Deployment of Unutilized Funds

The company has temporarily invested the unutilized proceeds in various instruments, including fixed deposits with Axis Bank and State Bank of India, mutual funds, and other investment instruments.

Implementation Delay

The monitoring agency noted delays in implementation of more than three months. The completion date for all objects, initially set for Fiscal 2025, is now estimated for July 2026.

Conclusion

While Transformers & Rectifiers (India) Limited has reported no deviation from the stated objectives of its QIP, the company faces challenges in terms of implementation delays and higher-than-expected issue expenses. The company's ability to effectively deploy the raised capital and adhere to the revised timeline will be crucial factors in determining the long-term impact of this QIP on its growth and financial performance.

Transformers & Rectifiers (India) Limited (TRIL) has reported a strong financial performance for the first quarter, with significant growth in revenue and profitability. The company also announced securing its largest-ever export order, signaling its expanding global presence.

Financial Highlights

TRIL reported a revenue from operations of INR 510.00 crores for Q1, marking a substantial 64% year-on-year growth. The company's EBITDA surged by 127% to INR 97.00 crores, while profit after tax (PAT) witnessed an impressive 227% increase, reaching INR 60.00 crores.

Order Book and Market Position

The company recorded a total order inflow of INR 665.00 crores during the quarter. As of June 30, TRIL maintains an unexecuted order book of INR 5,246.00 crores, providing revenue visibility for the next 15-18 months.

A significant achievement for the quarter was securing the company's largest export order to date, valued at USD 16.60 million, from a leading energy EPC company in Botswana. This milestone underscores TRIL's growing international presence and capability to deliver complex, high-value solutions to global customers.

Expansion and Future Outlook

TRIL is expanding its manufacturing capacity by 22,000 MVA at its Moraiya facility, expected to be operational by the end of Q2. This expansion aligns with the company's ambition to become a global force in the transformer industry.

The management maintains its target of reaching USD 1.00 billion in revenue over the next three financial years. For the current fiscal year, TRIL expects to close with an order book of INR 5,000.00-5,500.00 crores.

Operational Performance

The company's current capacity utilization stands at 65%, with plans to reach 85-90% utilization this year. TRIL has INR 18,000.00 crores worth of inquiries under negotiation, indicating strong market demand for its products.

Management Commentary

Satyen Mamtora, Managing Director of TRIL, stated, "We remain firmly on track in our journey towards achieving USD 1 billion in revenue over the next 3 financial years. Our strategic initiatives are aligned with our ambition to become a global force in the transformer industry."

Chanchal Rajora, CFO and Advisor to the Board, added, "Improvements in operational efficiency and process optimization have begun to reflect positively on our profitability. We continue to maintain a sharp focus on cash flows and working capital management."

Industry Outlook

The transformer industry in India is poised for significant growth, with the country planning to expand its power generation capacity. TRIL, along with other manufacturers, is aligning its capabilities to meet this increasing demand, which is expected to persist for the next 5-7 years.

As TRIL continues to focus on operational excellence and strategic expansion, it remains well-positioned to capitalize on the growing opportunities in both domestic and international markets.