Earnings Call Transcript Analysis Report #
Financial Performance Analysis of Transformers and Rectifiers (India) Limited Q3 FY25 Earnings Call #
Key Metrics (Q3 FY25 Standalone) #
- Revenue from Operations: INR 545 crores (YoY growth of 49%).
- EBITDA: INR 87 crores (YoY growth of 136%).
- Operational EBITDA Margin: 15.69%.
- Profit After Tax (PAT): INR 50 crores (YoY growth of 276%).
- PAT Margin: 9.12%.
Comparison #
Significant year-over-year growth across revenue, EBITDA, and PAT. EBITDA margin slightly lower sequentially (Q2 vs Q3) but higher YoY. PAT margin improved sequentially despite slightly lower EBITDA margin.
Guidance & Forecasts #
- FY25 Revenue Target: INR 2,000 crores (Reaffirmed).
- FY26 Revenue Target: INR 3,500 crores+.
- Long-Term Revenue Target: US $1 billion (annual revenue) in the next 3-4 financial years.
Areas of Growth #
Strong top-line and bottom-line growth driven by execution and market demand. Profitability metrics (EBITDA, PAT margins) show significant improvement YoY.
Areas of Decline #
Order booking in Q3 (INR 631 Cr) was lower than Q1/Q2, explained as a deliberate strategic choice.
Strategic Initiatives & Business Updates #
Backward Integration (CRGO) #
- Acquired controlling stake in CRGO processing unit (Posco Poggenamp Electrical Private Limited), aiming for 100% backward integration.
- Entered supply agreement for CRGO mother coil.
- CRGO constitutes 30-35% of transformer raw material cost.
- Expected PAT impact from all backward integration: ~4% increase once fully online.
- Acquisition already operational, contributing to work; EBITDA improvement expected from Q1 FY26.
Backward Integration (Radiators) #
- Setting up a fully automated radiator facility. Radiators constitute ~8-9% of RM cost.
- PGCIL approval process initiated for 765 KV class.
- Initial focus on 100% internal requirement, potential for external sales (max 15% capacity) later.
Technological Tie-ups #
Three new collaborations to support backward integration goals, expected to be operational by Q4 FY26.
Capacity Expansion #
15,000 MVA expansion project on track, completion expected by Feb/Mar 2025.