Transformers and Rectifiers Hits Upper Circuit on Major International Orders

Key Developments Boosting Share Prices

Transformers and Rectifiers (India) Ltd. (TRIL) saw a significant uptick in its share prices on Thursday, August 22, as the stock hit a 5% upper circuit, closing at Rs 709.85 per share. This rally came in response to the company securing substantial international orders worth $16.8 million from two global entities. These contracts not only highlight TRIL’s growing global footprint but also underscore its capabilities in delivering complex, high-value electrical equipment.

Major Contract Wins: A Testament to TRIL’s Global Competence

Of the total orders, the larger contract, valued at $14 million, was awarded by Linxon Global Sweden. This order involves the supply of 18 trackside traction transformers with a capacity of 20 MVA each and 55 trackside auto transformers of 7.5 MVA. These transformers are critical components in the railway infrastructure, and the successful execution of this project is expected to significantly bolster TRIL’s reputation in the international market. The completion of this contract is slated for October 2025, marking a major milestone in TRIL’s project pipeline.

The second contract, worth $2.8 million, comes from Arcelor Mittal Mexico. This contract is for the supply of a 175 MVA, 66 KV electrical arc furnace transformer. The importance of this order lies not just in its value but in the technical expertise required to manufacture and deliver such a specialized transformer. The project is expected to be completed by December of this year, further reinforcing TRIL’s commitment to timely and quality deliveries.

Strategic Growth and Future Prospects

Last month, TRIL set an ambitious revenue target of Rs 2,000 crore for the fiscal year 2024-25, with plans to increase its profit margin from 10% to 14%. According to Satyen Mamtora, the Managing Director of TRIL, the company secured orders worth approximately Rs 700 crore in the past quarter alone. This is a strong indication of the company’s robust order pipeline, which Mamtora expects to reach Rs 3,000 crore by the end of the current financial year.

The bulk of these orders is anticipated to come from sectors such as grid expansion, railways, and renewable energy, areas where TRIL has been focusing its efforts. Additionally, there has been a surge in inquiries for electric arc furnace (EAF) transformers, which are a significant export product for the company. This diversification into different sectors and geographies is likely to provide TRIL with a steady stream of revenue and help it achieve its financial targets.

Stock Performance: Riding the Wave of Success

The market has responded positively to TRIL’s recent achievements. The company’s stock has surged by 105.6% in the past six months, 198.13% year-to-date, and an impressive 510.1% over the last 12 months. This remarkable growth reflects investor confidence in TRIL’s ability to deliver on its commitments and capitalize on the opportunities in the global market.

As the company continues to expand its order book and execute its projects efficiently, the outlook for TRIL remains bullish. Investors are keenly watching how the company leverages its recent successes to fuel further growth and enhance shareholder value.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.