In Monday’s trading session, shares of a company with an expertise in designing and manufacturing transformers, hit a 5% upper circuit on BSE to Rs. 761.45, after the company secured orders worth a total of Rs. 148.55 crore from three different entities including Adani Energy Solutions Ltd.
The shares of Transformers and Rectifiers (India) Limited opened in the green at Rs. 740, up by nearly 2.04 percent, as against its previous closing price of Rs. 725.2, with a market capitalisation of Rs. 11,428 crore.
What’s the news:
Transformers and Rectifiers (India) Limited announced significant contract wins for a total contract value of Rs. 148.55 crore from three distinct entities. The details are as follows:
The first contract, valued at Rs. 72.5 crore, was secured from NCC Limited. It involves the designing, engineering, manufacture, testing at manufacturers works, supply, freight, ETC 2 Nos of 500 MVA, 400/220/33 kV transformers & 2 Nos. 125 MVAr, 420 KV reactor.
The execution time period for this order is set for completion by January 2026.
The second contract was awarded by Power Grid Corporation of India, valued at Rs. 55.91 crore. This contract entails the designing, engineering, manufacture, testing at manufacturer’s works, supply, freight, ETC of 765kV Class Reactors.
The order is scheduled to be executed within 21 months from the date of the Notification of Award.
The third contract, valued at Rs. 20.14 crore, was secured from Adani Energy Solutions Limited. This contract involves the supply, unloading, and ETC for 7 No. of 132/33kV, 20/25 MVA power transformers. The completion deadline for this contract is March 2025.
Previous News:
On May 23rd, Transformers and Rectifiers (India) Limited secured significant contracts totalling Rs. 359 crore.
This includes an export order of transformers worth Rs. 161 crore from AL Anwaar International, scheduled for completion by February 2025.
Additionally, the company received a domestic order of transformers valued at Rs. 179 crore from the Adani Group, with delivery expected within 18 months from the Notification of Award.
Financial & Stock Performance:
In terms of financials, the revenue from operations stood at Rs. 512.7 crore in Q4 FY23-24, rising by 17 percent YoY from Rs. 438.35 crore in Q4 FY22-23, while the after-tax profit grew by 333.5 percent to Rs. 41.6 crore from Rs. 9.6 crore, during the same period.
Further, on a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA climbed from Rs. 30.72 crore in Q4 FY22-23 to Rs. 65 crore in Q4 FY23-24, representing a growth of 111 percent.
The un-executed order book increased by 72 percent from Rs. 1,499 crore in FY22-23 to Rs. 2,582 crore in FY23-24, while the order inflow during the year stood at Rs. 2,050 crore.
The stock has delivered negative returns of nearly 20 percent in one year and around 3.5 percent of negative returns year-to-date.
About the company:
Incorporated in 1994, Transformers and Rectifiers (India) Limited is mainly comprised of manufacturing and selling of various kinds of transformers such as power, and distribution transformers, furnace transformers, rectifier transformers, and specialised transformers.
Written by Shivani Singh
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