During Monday’s trading session, the shares of one of the leading manufacturers of power and distribution transformers hit a 5 percent upper circuit at Rs. 223.95 on NSE, after the company secured an order worth Rs. 21.3 crores from a Chennai-based Electric Company.
With a market cap of Rs. 559.7 crores, the shares of Supreme Power Equipment Limited opened in the green at Rs. 215, up by around 1 percent, as compared to its previous closing price of Rs. 213.3.
What’s the news
Supreme Power Equipment Limited (SPEL), as per recent regulatory filings with the NSE, has announced securing a new order worth Rs. 21.3 crores from a Chennai-based Electric Company.
The order involves the manufacturing and supply of oil-cooled distribution transformers and is scheduled to be completed within nine months.
Previous Orders
30th December 2024: SPEL received a domestic order worth Rs. 3.63 crores from TRANTRANSCO, a leading player in the power transmission industry. This order involved the manufacturing, supply, and erection of power transformers.
3rd January 2025: The company was awarded two significant orders. The first, worth Rs. 12.81 crores, was from the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) for the supply of 100 kVA distribution transformers.
Additionally, Danya Electric Company, a partnership firm in which SPEL holds a 90 percent stake, secured another order worth Rs. 7.26 crores.
Financials
Supreme Power Equipment reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 10.6 percent, rising from Rs. 52.6 crores in H1 FY24 to Rs. 58.2 crores in H1 FY25.
Similarly, the company’s net profit increased from Rs. 6.6 crores to Rs. 7.3 crores over the same period, representing a growth of around 10.6 percent YoY.
As of H1 FY25, SPEL has a strong order book of more than Rs. 60 crores and enjoys consistent demand for its products and services.
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Future Outlook
SPEL is undertaking a major expansion project, with a 6-acre facility set to increase its manufacturing capacity from 2,500 MVA to 9,000 MVA per year. This will enhance its ability to meet higher demand, improve profit margins, and scale up operations.
The new facility will broaden the company’s product range to include transformers from 25 KV to 160 KV, catering to a wider market and improving its competitive positioning in the industry.
With the expanded facility, the company anticipates revenue potential between Rs. 500-550 crores at full capacity, along with a year-on-year growth of 10-30 percent.
SPEL’s venture into the design, construction, and commissioning of switchyards positions the company for new business opportunities and enhances its market reach.
To mitigate the risk of delayed payments from government clients, SPEL has strategically diversified its customer base, with 65 percent of FY24 revenue generated from private tenders. This strategic shift towards private entities reduces dependency on government contracts and enhances cash flow stability.
About the company
Supreme Power Equipment Limited is currently engaged in the areas of manufacturing, up-gradation, and refurbishment of transformers ranging from Power Transformer, Generator Transformer, Windmill Transformer, Distribution Transformer, Isolation Transformer, Solar Transformer, Energy Efficient Transformer, Converter and Rectifier Transformer.
Supreme Power Equipment Limited got listed on the NSE Emerge Platform on 29th December 2023.
Written by Shivani Singh
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