Transformers and Rectifiers India Limited was originally incorporated in 1994 as Triveni Electric Company Limited. In 1995, the Company's name was changed to Transformers and Rectifiers (India) Limited.  The Company's business mainly comprises of manufacturing and selling of various kinds of transformers such as power, and distribution transformers, furnace transformers, rectifier transformers, and specialised transformers. Currently, the company is having 3 integrated manufacturing facilities situated at Changodar - 12,000 MVA p.a. capacity, Odhav - 1,200 MVA p.a. capacity and Moraiya - 24,000 MVA p.a. capacity in Ahmedabad where it manufactures Transformers & Rectifiers ranging from 0.5 MVA - 500 MVA capacity, 5 kV - 1200 kV voltage class. It caters various industries such as Power Distribution, Petrochemical, Pharmaceutical, Power Transmission, Metal Processing, Cement, Railways, Paper and Pulp, Mining and Green Energy.

Company has 40+ years of excellence in Manufacturing, Designing, and Servicing of Energy Efficient Transformers & Reactors. Company has successfully completed 16000+ Installations worldwide with presence over 25+ countries. It has also Successfully completed ‘Dynamic Short Circuit Test’ on 153 Transformers at Renowned Test Laboratories like KEMA & CPRI which is almost Highest in India and entire Asia Pacific. Recently it showcased World’s First 420 kV ester fluid filled shunt reactor successfully designed and manufactured by it.

As on March 2024, company’s unexecuted order book stood at Rs. 2582 crores which is almost 72% higher than its previous years unexecuted order book in same period. Currently company has ₹17,176 crore worth of inquiries under Negotiation and it enjoyed a Rs. 2050 crore worth of order inflow during the year and Rs. 412 crores of New Order inflow during the recent quarter.

Figure 1 Source : Investor Presentation

Fundamentals (FY24-25):

Financial Results:

Company’s Net Sales was at Rs 369.35 crore in December 2023 up 12.51% from Rs. 328.29 crore in December 2022. Its Quarterly Net Profit was at Rs. 15.58 crore in December 2023 up 12.9% from Rs. 13.80 crore in December 2022. Company’s EBITDA stands at Rs. 40.11 crore in December 2023 up 12.89% from Rs. 35.53 crore in December 2022. Transformers EPS has increased to Rs. 1.10 in December 2023 from Rs. 1.04 in December 2022.

Key Updates:

1. Transformers and Rectifier (India) Limited has been awarded orders of total contract value of Rs. 232 Crores from Power Grid Corporation of India Limited.
2. Recently, Power Grid Corporation of India Limited has accepted to supply 25 MVAR and 8.33MVAR 245kV Shunt Reactors from the Changodar Unit of Transformers and Rectifiers (India) Limited.
3. It has successfully completed the most stringent ‘Dynamic Short Circuit Test’ on 250 MVA, 400/33+33 kV class Three Phase Power Transformer. The Dynamic short circuit test was conducted at National High Power Test Laboratory (NHPTL), Bina as per IEC 60076-5 standard.
4. Company has also successfully FAT tested multiple numbers of 210 MVA, 420/√3/21 kV single phase generator transformers with indigenous technology to one of the prestigious client in India.
5. It has also successfully completed the most stringent ‘Dynamic Short Circuit Test’ on 105 MVA, 400/√3/220/√3/33 kV class Single Phase Auto Transformer forming a bank of 315 MVA. The Dynamic short circuit test was conducted at National High Power Test Laboratory (NHPTL), Bina as per IEC 60076-5 standard.
6. It has also bagged orders of total contract value of Rs. 219 Crores from Power Grid Corporation of India Limited.
7. It has also been awarded orders of Transformers for total contract value of Rs. 237 Crores from Power Grid Corporation of India Limited.
8. Company has also bagged order for Transformers for total contract value of Rs. 118 Crores from Uttar Pradesh Power Transmission Corporation Limited.
9. It also bagged the order received of Rs.134 Crore from one of the Central Utility.
10. Transformers and Rectifiers (India) Limited has also been awarded order of Transformers for total contract value of Rs. 131 Crores, 184 and Rs. 192 crores from one of the Central Utility.
11. It has also Received order for Solar Power Plants for 4 nos. 250 MVA 2x33 kV/400 kV from a reputed EPC Company
12. Company also bagged orders for 8 nos. 315 MVA 2x33/400 kV from a Maharatna PSU.
13. It has also Received maiden order for 400 kV Single Phase Generator transformers of 6 nos. 210 MVA from a steel plant.
14. Company has also received order for Delhi Metro (DMRC) and Chennai Metro Projects.
15. It has also received an order of 220 MVA EAF transformer for Exports to be used in steel melting application, it is second biggest rating in the world.

In last 3 Years the stock has generated a whooping return of 2,723.58% as compared to the rise of Sensex and Nifty in the same period.

Over the years company has reported good financial performance backed by growing demands for its components from various industries. Company has good orderbook positions of unexecuted orders reflecting towards a streamlined flow of income in upcoming years. Considering company’s huge clientele of marquee clients, presence across 25 countries, well utilized manufacturing facilities, proven track records and growing demand of its products across various industries, investors can invest in this company for mid-term to long term period.

HET ZAVERI

info@smartinvestment.in

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