Transformers & Rectifiers aims for ₹2,000 crore in revenue for FY25 – EQ

In Short : Transformers & Rectifiers Ltd. targets ₹2,000 crore in revenue for FY25. This ambitious goal reflects the company’s growth strategy and commitment to expanding its market presence in the power equipment sector.

In Detail : Satyen Mamtora, Managing Director of Transformers & Rectifiers, said the company is expanding its production capacity for distribution transformers, solar transformers, and transformers for green hydrogen. This expansion will add approximately 15,000 MVA to their capacity.

Ahmedabad-based Transformers & Rectifiers is targeting a revenue of ₹2,000 crore in 2024-25 (April-March) with an increase in profit margins to 14% from 10% last year.

The company recently secured fresh orders worth ₹149 crore, contributing to a total order book of ₹698 crore in the first quarter (April-June) of FY25.

Satyen Mamtora, Managing Director of Transformers & Rectifiers said the company bagged orders worth about ₹700 crore In the past quarter and expects the total order pipeline to reach ₹3,000 crore by the end of the current financial year.

Mamtora said that a bulk of the ₹3,000 crore orders are likely to be from grid expansion, railways, and renewable energy sectors.

There are also enquiries on electric arc furnace (EAF) transformers, which is a major area of exports.

The company raised ₹500 crore via a Qualified Institutional Placement (QIP).

Mamtora said this capital is being directed towards expanding the production capacity for distribution transformers, solar transformers, and transformers for green hydrogen, totaling approximately 15,000 MVA.

“This expansion, along with both organic and inorganic growth in backward integration, will require about ₹300 crore in capital expenditure this year,” he said.

The company aims to increase export share from around 12-13% last year to 25% this year.

Transformers & Rectifiers’ current market capitalisation is ₹11,993.13 crore.