Shares of this electrical equipment manufacturing company jumped up to 2 percent in Wednesday’s trading session after receiving multiple orders from the government worth Rs. 574 crores. The shares have delivered a multibagger return of 242 percent to its shareholders on a YTD basis.
With a market capitalization of Rs. 2,729 crores, the shares of Transformers and Rectifiers India Ltd started Wednesday’s trading session on a higher note at Rs. 198 compared to its previous close of Rs. 189.70. The shares hit a high of Rs. 200, gaining around 2 percent and currently trading at Rs. 191.30 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced receiving multiple from the Government.
They received a work order worth Rs. 237 crores from Power Grid Corporation of India for designing, engineering, manufacturing, and testing at the manufacturer’s works, supply, and freight of reactors including insulating oil and along with all fittings, accessories including a marshalling box for each auto-Transformer, digital RTCC Panel, foundation bolts (if any), cables at Beawar Substation and Dausa Substation and the entire work shall be completed within 15 months from the date of issue of notification of award.
Furthermore, the company received another work order from Power Grid Corporation of India worth Rs. 219 crores for the supply of 13 numbers of 110 MVAR, 765kV, 1-Phase Reactors, 2 numbers of 125 MVAR 420kV, 3-Phase Reactor, 6 numbers of 110 MVAR 765kV, 1-Phase Reactors, along with all fittings and accessories, and the entire work shall be completed within 15 months from the date of issue of notification of award.
In addition to this, the company received a work order from Uttar Pradesh Power Transmission Corporation Limited worth Rs.118 crores for designing, engineering, manufacturing, testing at manufacturer’s works and supply, unloading and supervision of 5 Nos. of 500 MVA, and transformers with all accessories.
Coming onto the company’s financial statements, the revenue zoomed by 65 percent from Rs. 155.27 crores in the June quarter to Rs. 257.06 crores during the September quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 122.21 crores to a net profit of Rs. 189 crores during the same timeframe.
As of September 2023, the order book was Rs. 2,145 crores, which represents a growth of 57 percent YoY and they are targeting an order book of around Rs. 2,500 crores by the end of the financial year.
Headquartered in Ahmedabad, Transformers and Rectifiers India was incorporated in 1994. The company is a manufacturer of Power, Furnace and Rectifier Transformers.
Written By Vaibhav Patil
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