Hind Rectifiers Limited , a prominent player in the Indian electrical equipment sector, has made a significant move in its global expansion strategy. The company has received approval from the French Tribunal to acquire the running business, assets, and intellectual property of BeLink Solutions France for €1.00 million.

Acquisition Details

The Tribunal des Activités Économiques of Le Mans approved Hind Rectifiers' proposal, marking a crucial step in the company's international growth plans. The acquisition will be executed through a new subsidiary in France, with a unique ownership structure:

• Hind Rectifiers Limited will hold 100% of the preference shares
• 66% of the equity shares will be owned by Hind Rectifiers Limited
• The remaining 34% of equity shares will be held by Promoter Group Companies

Strategic Expansion

This acquisition aligns with Hind Rectifiers' board approval, which outlined plans for incorporating a subsidiary to facilitate global business expansion and explore new opportunities in international markets. The move into France represents a concrete step towards realizing these ambitions.

About BeLink Solutions

BeLink Solutions France operates in three key areas:

1. Robotics
2. Electronics Manufacturing Services (EMS)
3. Electronics Research and Development (R&D)

This acquisition is expected to enhance Hind Rectifiers' capabilities in these high-tech domains, potentially opening new avenues for growth and innovation.

Timeline and Next Steps

The possession of BeLink Solutions' assets and business is anticipated to occur upon the incorporation of the proposed subsidiary in France.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Hind Rectifiers has duly informed the stock exchanges about this significant development. The company has emphasized that BeLink Solutions is not a related party to Hind Rectifiers Limited, ensuring transparency in the transaction.

This strategic acquisition marks a pivotal moment for Hind Rectifiers as it seeks to strengthen its global footprint and diversify its technological capabilities. The move into robotics, EMS, and electronics R&D through BeLink Solutions could potentially open new revenue streams and enhance the company's competitive position in the international market.

Hind Rectifiers Limited , a leading provider of power electronics and traction systems for Indian Railways, has reported a robust performance for the first quarter, with significant growth across key financial metrics and a record-breaking order book.

Strong Financial Performance

The company's revenue from operations surged by 58.5% year-on-year to INR 214.80 crores in Q1. This impressive top-line growth was accompanied by substantial improvements in profitability:

The EBITDA margin expanded to 11.3% from 10.7% in the same quarter last year, while the PAT margin improved to 5.9% from 5.1%.

Record-Breaking Order Book

Hind Rectifiers achieved an all-time high order book of over INR 1,022.00 crores as of June 30. This includes two major orders from Indian Railways for locomotive products:

1. An order worth INR 127.00 crores
2. Another order valued at INR 101.00 crores

These significant wins underscore the company's strong position in the railway equipment market and its technological capabilities.

Technological Advancements and New Orders

The company has made notable progress in its product development efforts:

1. Successfully commissioned its indigenously developed propulsion system, which has been assigned to Western Railways for field trials.
2. Received orders for next-generation propulsion systems designed specifically for passenger locomotives.

Expansion and Capital Raise

To support its growth initiatives, the Board of Directors has approved a preferential issue of warrants worth INR 27.40 crores to the promoter group, subject to shareholder approval. This capital infusion is expected to propel growth across key business segments.

Business Segments and Market Position

Hind Rectifiers operates in three main verticals:

1. Traction Transformers: Holds a 40-45% market share with Indian Railways
2. Power Electronics Division
3. Electromechanical Systems

The company is a key supplier to Indian Railways, which contributes around 90% of its revenue. Hind Rectifiers supplies both directly to Railways and through OEMs like Alstom, Siemens, and BHEL.

Future Outlook

Management is targeting a 10% market share in propulsion systems, with each system valued at approximately INR 1.80 crores. The company plans a INR 50.00 crores capex for backward integration, to be funded two-thirds by debt and one-third by internal accruals.

With strong tailwinds from government initiatives such as Make in India, railway modernization, and electrification, Hind Rectifiers is well-positioned to capitalize on emerging opportunities in the power electronics and rail transportation sectors.

Chairman and Managing Director Suramya Nevatia commented, "Q1 has set a solid foundation for the year. The consistent execution, strong traction in our indigenously developed propulsion systems, and encouraging momentum in newer verticals like our HVAC systems are driving our growth. Our increasing scale of delivery, supported by backward integration and automation, is steadily enhancing our responsiveness, product quality, and delivery timelines."

As Hind Rectifiers continues to strengthen its market position and expand its technological capabilities, the company appears poised for sustained growth in the coming years, riding on the back of India's ambitious railway modernization plans.