Any current/future new fundraising through debt or equity?

The company raised Rs. 120 crore through a preferential issue (equity) in October 2023, providing capital support for smooth operations. There is no explicit mention of any new or planned fundraising through debt or equity beyond this preferential issue. The company has fund-based limits of Rs. 163 crore, currently almost 100% utilized, and non-fund based limits around Rs. 650 crore, mainly for bank guarantees and raw material procurement. CAPEX plan for the next financial year is Rs. 50-60 crore, mainly for IDT and Green transformers, but no mention of raising additional funds specifically fo

Any current/future capex/capital investment/strategic investment?

Transformers & Rectifiers (India) Limited has a planned CAPEX of Rs. 50 crore to Rs. 60 crore in the next financial year. The CAPEX will mainly focus on the IDT (Induced Draft Transformer) and Green transformer segments. There is no detailed evaluation yet for larger CAPEX that would be required to increase revenue from current capacity levels (~Rs. 2,500 crore) to Rs. 5,000 crore. The company is taking a step-by-step approach to capacity expansion and first aims to achieve initial milestones before planning significant further investments.

Future growth expectations in sales/revenue/volumes?

The company anticipates reasonable growth in order inflow, supported by a strong industry demand across sectors like Railways, Renewables, Green Energy, and Power. The order book as of September 30, 2023, stands at Rs. 2,145 crore with expectations to grow to around Rs. 2,500 crore by the end of the financial year. The management is targeting revenue of approximately Rs. 1,400 crore for the current year, with hopes to achieve Rs. 1,000 crore in the next two quarters. Export orders under negotiation stand at around Rs. 994 crore, aiming to increase export presence, targeting 20%-25% of the orde

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects improved EBITDA margins going forward, with double-digit margins targeted this year and operational leverage contributing to growth. Margins are anticipated to improve due to better raw material cost factors, higher-margin export orders, and a shift in order mix favoring central and industrial utilities over low-margin state utilities. Substantial reduction in finance costs is expected in H2FY24, aiding profitability, with FY25 finance cost estimated between Rs 30-40 crore. The order book is strong at Rs 2,145 crore, with expected order inflows of around Rs 2,500 cror

Current/ Expected Orderbook/ Pending Orders?

As of September 30, 2023, the unexecuted order book stands at Rs. 2,145 crore, with delivery expected over the next 18-20 months. Order book composition: 34% central utilities, 11% state utilities, 40% industrial customers, 9% renewables, and 6% exports. The company is targeting around Rs. 2,500 crores in total order book by the end of FY24. Domestic market pipeline: Rs. 2,741 crore worth of tenders and inquiries under negotiation or bidding. Export pipeline: Rs. 994 crore of orders under various negotiation stages. Recent order inflow in last two quarters is about Rs. 700 crore added to the u

IN US

Sale is live|00:00:00left today

Transformers & Rectifiers India LtdQ3 FY23Electrical Equipment

Transformers & Rectifiers India Ltd Q3 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹334P/E: 37.9Market Cap: ₹10.0K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 3

→The company anticipates reasonable growth in order inflow, supported by a strong industry demand across sectors like Railways, Renewables, Green Energy, and Power.
→The order book as of September 30, 2023, stands at Rs. 2,145 crore with expectations to grow to around Rs. 2,500 crore by the end of the financial year.
→The management is targeting revenue of approximately Rs. 1,400 crore for the current year, with hopes to achieve Rs. 1,000 crore in the next two quarters.
→Export orders under negotiation stand at around Rs. 994 crore, aiming to increase export presence, targeting 20%-25% of the order book from export markets in the next two years.
→Current capacity can support a top line of up to Rs. 2,500 crore without major CAPEX; planned CAPEX of Rs. 50-60 crore next year focuses on new transformer segments.
→The company is optimistic on participation in growth driven by infrastructure development, renewable energy expansion, and export opportunities.

Margin guidance

Category 1

→The company expects improved EBITDA margins going forward, with double-digit margins targeted this year and operational leverage contributing to growth.
→Margins are anticipated to improve due to better raw material cost factors, higher-margin export orders, and a shift in order mix favoring central and industrial utilities over low-margin state utilities.
→Substantial reduction in finance costs is expected in H2FY24, aiding profitability, with FY25 finance cost estimated between Rs 30-40 crore.
→The order book is strong at Rs 2,145 crore, with expected order inflows of around Rs 2,500 crore by year-end, including 20-25% export share with higher margins.
→Revenue guidance for FY24 is around Rs 1,400 crore with growth expected in H2, led by dispatch of pending orders and easing working capital constraints.
→Expansion plans include Rs 50-60 crore CAPEX for IDT and green transformers to support future growth.
→Overall, earnings and operating profits are expected to grow meaningfully driven by margin improvement, export growth, and better working capital.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→The company raised Rs. 120 crore through a preferential issue (equity) in October 2023, providing capital support for smooth operations.
→There is no explicit mention of any new or planned fundraising through debt or equity beyond this preferential issue.
→The company has fund-based limits of Rs. 163 crore, currently almost 100% utilized, and non-fund based limits around Rs. 650 crore, mainly for bank guarantees and raw material procurement.
→CAPEX plan for the next financial year is Rs. 50-60 crore, mainly for IDT and Green transformers, but no mention of raising additional funds specifically for CAPEX.
→Management emphasized using the current funds and expects the working capital situation to improve with payments from GETCO.
→No clear declaration of future fundraising activities was made during the call.

Order book

Yes

→As of September 30, 2023, the unexecuted order book stands at Rs. 2,145 crore, with delivery expected over the next 18-20 months.
→Order book composition: 34% central utilities, 11% state utilities, 40% industrial customers, 9% renewables, and 6% exports.
→The company is targeting around Rs. 2,500 crores in total order book by the end of FY24.
→Domestic market pipeline: Rs. 2,741 crore worth of tenders and inquiries under negotiation or bidding.
→Export pipeline: Rs. 994 crore of orders under various negotiation stages.
→Recent order inflow in last two quarters is about Rs. 700 crore added to the unexecuted order book.
→The company expects sizable orders from exports, including a recent inquiry for approx Rs. 800 crore from an African country.
→Expects export orders to contribute 20-25% of the order book within next two years.

Capex plans

Yes

→Transformers & Rectifiers (India) Limited has a planned CAPEX of Rs. 50 crore to Rs. 60 crore in the next financial year.
→The CAPEX will mainly focus on the IDT (Induced Draft Transformer) and Green transformer segments.
→There is no detailed evaluation yet for larger CAPEX that would be required to increase revenue from current capacity levels (~Rs. 2,500 crore) to Rs. 5,000 crore.
→The company is taking a step-by-step approach to capacity expansion and first aims to achieve initial milestones before planning significant further investments.

How does Transformers & Rectifiers India Ltd rank vs peers in Electrical Equipment?

Pro feature

1Transformers & Rectifiers India Ltd

Rev 3Mar 1

See full Electrical Equipment sector rankings

Want more stocks like Transformers & Rectifiers India Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio