Transformers and Rectifiers (India) (532928) Q1 24/25 earnings summary

Executive summary

• Achieved record order inflow of INR 698 crores in Q1 FY25, with an unexecuted order book of INR 2,929 crores as of June 2024 and inquiries worth INR 17,500 crores under negotiation and bidding.

• Consolidated revenue for Q1 FY25 was INR 322 crores (₹32,200 lakhs), up 107% year-on-year, with PAT turning positive from a loss in Q1 FY24.

• Raised INR 500 crores (₹49,999.99 lakhs) through a Qualified Institutional Placement (QIP) to support growth and expansion.

• New capacity for renewable energies and automated manufacturing to commence production by end of 2024.

• Received operational excellence award from Power Grid and exported 220 MVA electric arc furnace transformers.

Financial highlights

• Standalone revenue for Q1 FY25 reached INR 311 crores, up 103% YoY; consolidated revenue at INR 322 crores, up 107% YoY.

• Standalone EBITDA at INR 42.53 crores (up 633% YoY, margin 13.65%); consolidated EBITDA at INR 46.22 crores (up 650% YoY, margin 14.35%).

• Standalone profit after tax at INR 18.41 crores (up 268% YoY, net margin 5.83%); consolidated profit after tax at INR 20.87 crores (up 268% YoY, net margin 6.4%).

• Basic and diluted EPS for Q1 FY25 were ₹1.40, compared to ₹(0.95) year-over-year.

• Raised INR 500 crores through QIP in three weeks.

Outlook and guidance

• Revenue guidance for FY25 remains at INR 2,000 crores with margins around 15%.

• Targeting standalone revenue of INR 4,500–5,000 crores and margins of 16–17% within three years.

• Aims to become debt-free by optimizing balance sheet, reducing debtors, and improving inventory management.

• Expects 25% of order book from exports by FY26, with a dedicated export team and growing international presence.

• Focus on consolidating national and international presence and exploring organic and inorganic growth.