Rs 5,132 Crore Order Book: Multibagger Transformers Manufacturer Becomes First Company To Come Out With Its Quarterly Results (Q4FY25) & Annual Results (FY25)
The stock gave multibagger returns of 110 per cent in just 1 year, 2,580 per cent in 3 years and a whopping 15,250 per cent in 5 years.
Transformers & Rectifiers India Limited manufactures a wide range of transformers and rectifiers. The company's products include power generation, transmission, and distribution transformers. The company has a market cap of over Rs 14,000 crore and has delivered good profit growth of 57.2 per cent CAGR over the last 5 years. As of March 31, 2024, the company has an order book of Rs 5,132 crore, Order Inflow Q4FY25 is Rs 2,144 crore and Inquiries under Negotiation are worth Rs 22,000 crore.
Transformers & Rectifiers (TARIL) reported strong financial performance for Q4FY25 and the full fiscal year FY25, demonstrating significant growth across key metrics. The company's revenue saw substantial increases both year-over-year (31.94 per cent to Rs 676 crore) and quarter-over-quarter (20.94 per cent to Rs 676 crore), culminating in an annual revenue of Rs 2019 crore, a remarkable 55.98 per cent rise. Operating profit also witnessed impressive growth, jumping 83.27 per cent YoY and 54.77 per cent QoQ to Rs 131 crore, leading to an annual EBITDA of Rs 330 crore, up by 146.21 per cent. This operational success translated to improved operating margins, reaching 19 per cent in both Q4 YoY and QoQ comparisons, and an FY25 margin of 16.34 per cent, exceeding their guidance. Consequently, net profit soared, showing a 135.84 per cent YoY and 72 per cent QoQ increase to Rs 94 crore, with the full-year PAT reaching Rs 214 crore, a substantial 381.51 per cent increase.
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Transformers & Rectifiers (TARIL) successfully achieved its FY25 revenue guidance of Rs 2,000 crore and EBITDA margin guidance of 15-16 per cent (reporting 16 per cent). The company is set to begin commercial production of its 15,000 MVA Phase 1 capacity in May 2025, marking the start of its 3-year journey towards US$1 Billion revenue, with plans to increase EHV transformer capacity by 22,000 MVA starting in February 2026, aiming for a total capacity exceeding 75,000 MVA post-expansion, supported by a planned Rs 550 crore Capex over the next 15 months and the implementation of 4 new backward integration units to achieve 100 per cent backward integration by Q1FY26-27, highlighted by significant order wins including a landmark Rs 740 crore order from GETCO, a 420kV reactor order from Power Grid, and a 175MVA EAF transformer order from Arcelor Mittal Mexico.
The company shares ex-traded bonus equity, distributing them in a 1:1 proportion. Specifically, one bonus equity share of Re 1 was given for each existing Re 1 fully paid-up share held on the record date. The ex-record date was Friday, February 14, 2025. The stock gave multibagger returns of 110 per cent in just 1 year, 2,580 per cent in 3 years and a whopping 15,250 per cent in 5 years. Investors should keep an eye on this small-cap stock under their watchlist.
Disclaimer: The article is for informational purposes only and not investment advice.