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    T R I L

    TARIL
    Capital Goods·8 Apr 2025
    Management Summary

    Transformers and Rectifiers (India) Limited delivered a strong Q4 and full-year FY25, marked by record production, significant revenue and profit growth, and robust order inflows. The company made strategic advancements in backward integration and capacity expansion, while also strengthening its balance sheet with reduced debt and improved working capital. Management expressed confidence in achieving its US$1 billion revenue target within three years, driven by a healthy order pipeline and operational efficiencies.

    Highlights

    5

    • FY25 Standalone Revenue grew 53% to ₹1,950 crores, exceeding ₹2,000 crores guidance on a consolidated basis (₹2,051 crores).

    • FY25 Standalone EBITDA increased 149% to ₹320 crores, with margins improving to 16.12%.

    • PAT for FY25 Standalone jumped 325% to ₹187 crores, with PAT margin at 9.45%.

    • Unexecuted order book reached ₹5,132 crores as of March 31, 2025, ensuring 15-18 months of revenue visibility.

    • Debt-to-equity ratio significantly reduced to 0.2% from 0.84%, and debtor days improved to 114 from 156.

    Key financials

    Single quarter

    08 metrics
    1. 01Standalone Revenue₹1,950 Cr+53%YoY
    2. 02Consolidated Revenue₹2,051 Cr
    3. 03Standalone EBITDA₹320 Cr+149%YoY
    4. 04Standalone EBITDA Margin16.1%
    5. 05Standalone PAT₹187 Cr+3.3%YoY

    Order Book

    high confidence

    Total Value

    ₹ 5,132 crores

    as of 2025-03-31

    quantified

    Execution

    ensuring clear revenue visibility for the next 15 months to 18 months

    Composition

    Mix2 client types
    • Utility Business45.0%
    • EPC and Other Businesses55.0%

    Share of order book by client type

    "The company achieved its highest-ever order inflow of INR4,504 crores in FY25, resulting in a robust unexecuted order book of INR5,132 crores, providing strong revenue visibility for the next 15-18 months. Management targets an order input of INR8,000 crores for FY26."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹550 crores

    internal accruals and the QIP proceeds

    Debt

    Debt disclosed

    M&A

    CRGO processing unit

    acquisition · closed

    Liquidity

    Cash ₹500 crores

    Raised INR500 crores via QIP, executed in record time, to fund backward integration and manufacturing capacity expansion.

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    Revenue
    US$1 billion
    		High
    Profitability
    PAT Level
    10%
    		High
    Profitability
    CRGO Backward Integration Margin Impact
    0.25%
    		Medium
    Margin
    EBITDA Margin
    16% to 17%
    		High
    Working Capital
    Working Capital Days
    around 120 days
    		High
    Order Book
    Order Input
    INR8,000 crores
    		High
    Order Book
    Export Order Book Size
    around 15%
    		High
    Capacity Utilization
    Utilization Rate
    80%
    		High
    Capex
    FY26 Capex
    INR400 crores
    		High
    Backward Integration
    CRGO Backward Integration
    almost 100%
    		High

    What to watch in Q1 FY26

    5

    Capacity Utilization Rate

    next year
    Current60%-65%
    Target80%

    Why it matters

    Indicates operational efficiency and ability to meet growing demand.

    Yes, we are currently at 60%-65% utilization. Next year, we should reach about 80% utilization.

    Risks & concerns

    3
    RiskSeverity

    Competition from other players

    Management aims not to increase margins excessively to avoid 'opening the door for others' in the competitive market. — Management acknowledged

    medium

    Raw material price volatility (CRGO)

    Backward integration into CRGO processing is expected to mitigate dependency and improve supply chain resilience. — Management acknowledged

    low

    Government capex slowdown in power sector

    Management stated there is no slowdown in government spending in the power and energy sector. — Analyst downplayed

    low

    Q&A highlights

    8

    “Sir, quarter 4, there are a couple of orders that we have executed were at very, very excellent margins. And that's why this quarter 4 margin is looking a little bit robust. But on the futuristic side, the margins what we are showing on a yearly basis will be the guided margins, sir. ... 16% to 17% level, sir.”

    Clarified that the exceptionally high Q4 margin was due to specific orders and that the sustainable yearly margin target is 16-17%.

    asked by Bharat Shah

    2 min read5 chapters

    Detailed Narrative

    01

    Record Performance and Robust Growth in FY25

    Transformers and Rectifiers (India) Limited achieved its highest-ever production of 29,118 MVAs in FY25, a significant increase from 16,425 MVAs in FY24. This translated into a 53% year-on-year growth in standalone revenue, reaching ₹1,950 crores. Consolidated revenue for FY25 stood at ₹2,051 crores, surpassing the initial guidance of ₹2,000 crores. EBITDA for the standalone business grew by 149% to ₹320 crores, with margins expanding to 16.12% from 10.03% in FY24, while consolidated EBITDA was ₹359 crores.

    02

    Strong Order Book and Enhanced Revenue Visibility

    The company secured a total order inflow of ₹4,504 crores in FY25, marking its highest-ever inflow. This included a landmark single order of ₹740 crores from GETCO in March 2025. As a result, the unexecuted order book stood at a robust ₹5,132 crores as of March 31, 2025, providing clear revenue visibility for the next 15 to 18 months. Management targets an order input of approximately ₹8,000 crores for the next financial year.

    03

    Strategic Backward Integration and Capacity Expansion

    TARIL completed the acquisition of a 51% controlling stake in a CRGO processing unit, aiming for near 100% backward integration for this critical raw material, which constitutes 32-35% of transformer cost input. This move is expected to enhance in-house capabilities and supply chain resilience. The company also initiated two major capacity expansions: a 15,000 MVA expansion with Phase 1 operational by May 2025, and a 22,000 MVA expansion for EHV transformers at its Moraiya facilities, expected by February 2026. These expansions will increase total manufacturing capacity to 75,000 MVA.

    04

    Improved Financial Health and Capital Structure

    The company significantly strengthened its balance sheet, with the debt-to-equity ratio reducing to 0.2% in FY25 from 0.84% in FY24, moving towards a goal of becoming net debt-free within 1-2 years. Debtor days improved to 114 from 156 in the previous year, reflecting better working capital management. TARIL successfully raised ₹500 crores through a Qualified Institutional Placement (QIP) to fund its backward integration and capacity expansion plans.

    05

    Future Outlook and Growth Targets

    TARIL maintains its long-term vision to achieve US$1 billion in revenue within the next three years. The company aims to sustain EBITDA margins at 16-17% and a PAT level of 10% for the year ahead. Management expects capacity utilization to reach approximately 80% next year from the current 60-65%. The focus remains on consistent execution, customer-centric innovation, and robust financial discipline, with no anticipated slowdown in government spending in the power sector.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.