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Earnings Call Transcript

Transformers & Rectifiers (India) Earnings Call Transcript: Key Takeaways

Management is aggressively expanding capacity and backward integration to hit a $1B target by FY29, despite temporary Q1 revenue moderation due to modernization at the Changodar plant.

Guidance and delivery
Management target Revenue 25.0% FY27
Highlights
Revenue growth10% YoY growth; moderated due to plant modernization activities.
MarginsTargeting 16% EBITDA standalone; consolidated margins benefited from subsidiaries.
Order bookUnexecuted order book at ₹6,630 crore, up 26% YoY.
Demand visibilityStrong sectoral tailwinds from grid modernization and renewable energy integration.
Management confidenceBalanced but ambitious, focusing on execution of a massive order book.

Growth

Revenue grew 10% YoY, but EBITDA margins remained healthy at 15.6% standalone and 19.2% consolidated.

Outlook

Guided for 25% revenue growth in FY27 with 16% EBITDA and 9-10% PAT margins.

Risks

Execution delays in backward integration and rising working capital/inventory levels present significant liquidity and interest cost risks.

Last quarter's promises, checked

Delivered

  • Guided ₹2,500-2,600cr Revenue → delivered ₹2,509cr (= BEAT)
  • Guided 15-16% EBITDA margin → delivered 15.4% standalone (= BEAT)
  • Guided 33,000 MVA production → delivered 33,763 MVA (= BEAT)

Partly delivered

  • Guided Changodar capacity start Q1 → delayed to Q2 due to monsoons (= PARTIAL)

Missed

  • Guided ₹8,000cr order book by FY26 → delivered ₹5,000cr (= MISS)
  • Guided ₹2,600cr Revenue (Q3 call) → delivered ₹2,509cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: TARIL. Summary written with AI assistance from the document.

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Transformers & Rectifiers (India) Ltd: key numbers

Share price
₹277.65
Market cap
₹8,334 Cr
Revenue (annual)
₹2,509 Cr
Net profit (annual)
₹264.4 Cr
P/E (TTM)
32.2×Sector 53.6×
Promoter holding
64.36%+0.00% QoQ
FII holding
7.80%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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