The transformer sector in India is a vital part of the country’s power infrastructure, catering to the growing demand for electricity across industrial, commercial, and residential sectors. With the government’s push for renewable energy, smart grids, and infrastructure development, the sector has strong growth potential. Increasing urbanization, electrification of rural areas, and the expansion of industrial activities contribute to a rising need for transformers.
Key players in the Indian transformer sector include BHEL, Siemens India, Schneider Electric India, Crompton Greaves Power and Industrial Solutions, and Voltamp Transformers. These companies specialize in manufacturing a wide range of transformers for power transmission and distribution, catering to both domestic and international markets. The sector’s future growth is driven by technological advancements, government initiatives, and expanding renewable energy projects.
Financial Outlook
Sales Growth Comparison
Transformers & Rectifiers India Ltd witnessed a significant sales increase of 80%, rising from ₹257 crore in Sep 2023 to ₹462 crore in Sep 2024. In contrast, Voltamp Transformers Ltd saw a modest 4.5% growth, with sales moving from ₹381 crore to ₹398 crore during the same period.
EBITDA Performance
Transformers & Rectifiers experienced a remarkable 245% rise in EBITDA, from ₹20 crore to ₹69 crore, showcasing strong growth. Voltamp Transformers also showed improvement, with EBITDA increasing by 8.7%, from ₹69 crore to ₹75 crore, reflecting steady profitability growth.
Operating Profit Margin (OPM)
Transformers & Rectifiers India Ltd improved its OPM by 7 percentage points, from 8% to 15%. Voltamp Transformers saw a more modest improvement of 1 percentage point, from 18% to 19%, indicating stronger operational efficiency at Transformers & Rectifiers.
Net Profit Growth
Transformers & Rectifiers achieved an impressive 2200% growth in net profit, rising from ₹2 crore to ₹46 crore. Voltamp Transformers saw a 23.8% increase in net profit, growing from ₹84 crore to ₹104 crore, demonstrating strong but more stable profitability.
Ratio Comparision
Transformers & Rectifiers India Ltd has a higher Price-to-earnings (PE) ratio of 130 compared to Voltamp Transformers Ltd, which has a PE of 33.4, indicating stronger market expectations for future growth in Transformers & Rectifiers. The company also has a higher Price to Book (P/BV)
ratio of 14.3, suggesting that the market values its assets at a premium. In contrast, Voltamp’s P/BV is 8.11, reflecting a more conservative valuation.
Transformers & Rectifiers has an ROCE of 14.8%, while Voltamp outperforms with a higher ROCE of 31.6%, indicating better capital efficiency. Additionally, Transformers & Rectifiers has a low Debt-to-equity ratio of 0.22, implying lower financial risk, while Voltamp operates with no debt, indicating a debt-free capital structure.
Area of Operations
Transformers & Rectifiers India Ltd
Transformers & Rectifiers India Ltd specializes in designing, manufacturing, and supplying transformers and rectifiers for sectors including power generation, transmission, and distribution. With a diverse product portfolio, the company serves both domestic and international markets. It has a significant presence in the transmission and distribution space, including the supply of high-voltage transformers, rectifiers, and other electrical components for industrial and utility applications.
Voltamp Transformers Ltd
Voltamp Transformers Ltd, on the other hand, focuses primarily on the manufacturing of transformers, ranging from distribution to power transformers, catering to both public and private sector needs. The company has a strong foothold in the power sector and has been involved in supplying transformers for power generation and distribution projects, both within India and abroad. Voltamp’s operations are more focused on transformer solutions for utilities and industries that require high-performance electrical equipment.
Share Price
Transformers & Rectifiers India Ltd
The shares of the company closed at Rs. 1,120 down by 0.34% from its previous close of Rs. 1,123.85 as of December 13, 2024.
Voltamp Transformers Ltd
The shares of the company closed at Rs. 10,824 down by 3.65% from its previous close of Rs. 11,234 as of December 13, 2024.
Conclusion
The comparative analysis reveals Transformers & Rectifiers’ exceptional growth trajectory, characterized by significant sales expansion, profit surge, and investor optimism. While Voltamp Transformers maintains operational stability, Transformers & Rectifiers demonstrate more dynamic potential. The contrasting financial metrics highlight the competitive landscape of India’s transformer sector, where innovative strategies and adaptability can drive substantial market performance and shareholder value.
Written By: Dipangshu Kundu
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