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.

Transformers & Rectifiers (India) Limited , a key player in the power equipment sector, has unveiled an ambitious growth strategy aimed at significantly boosting its revenue and operational efficiency over the next three years.

Revenue and Margin Targets

The company has set its sights on achieving a remarkable revenue target of $1 billion within the next three years. This goal underscores Transformers & Rectifiers' confidence in its growth potential and market opportunities. Alongside this revenue objective, the company is projecting impressive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins of 17-18%, indicating a strong focus on profitability and operational efficiency.

Order Book Projections

In a move that further reinforces its growth expectations, Transformers & Rectifiers anticipates building a robust unexecuted order book. The company projects that by the end of next year, its order book will reach a substantial Rs 5,000-5,500 crore. This healthy order book is expected to provide a solid foundation for the company's ambitious revenue targets.

Capacity Utilization Improvements

One of the key drivers behind the company's optimistic outlook is the expected improvement in capacity utilization. Transformers & Rectifiers foresees a significant increase in its capacity utilization rate, projecting it to reach 85-90% this year. This marks a substantial improvement from the previous year's utilization rate of 65%, suggesting enhanced operational efficiency and potentially higher production volumes.

Export Revenue Outlook

While focusing on overall growth, Transformers & Rectifiers expects its export revenue to maintain a steady contribution to the total revenue. The company anticipates that exports will continue to account for approximately 10% of its total revenue, indicating a balanced approach to domestic and international market opportunities.

The ambitious targets set by Transformers & Rectifiers reflect the company's strategic vision for growth and its confidence in market demand for its products. As the power sector continues to evolve, the company's focus on improving operational efficiency and expanding its order book positions it to capitalize on emerging opportunities in both domestic and international markets.