EHV transformers dominate TRIL’s sales in FY23

 

Transformers of rating 220kV and above dominated the sales of Transformers & Rectifiers (India) Ltd (TRIL) during FY23, in physical terms.

According to an investor presentation filed by TRIL on stock exchanges recently, transformers of rating 220kV and above accounted for 65.6 per cent of the physical sales (in MVA terms) in FY23 as against 57.6 percent in FY22.

However, overall transformer sales declined in MVA terms, by around 15 per cent, from 24,756 MVA in FY22 to 20,937 MVA in FY23. The fall in sales of sub-220kV transformers in MVA terms was sharper at 31 percent, as compared with around 4 per cent in the case of EHV (220kV and above) transformers.

Despite the decline in MVA-based sales, TRIL recorded impressive growth in terms of value. Transformer sales grew by 20.5 percent to Rs.1,359 crore in FY23 from Rs.1,128 crore in FY22. This points to higher per-MVA sales realization during FY23.

It is also interesting to note that the industrial sector (including renewables) accounted for a much higher share in sales, in value terms. At 43 percent in FY23, this share was appreciably higher than 26 percent in FY22. Correspondingly, the shares of other avenues like utilities and exports, showed a corresponding decline. (See table). TRIL, incidentally, has identified renewable energy as a growth driver, and has set a vision of becoming the largest manufacturer of transformers for green energy, as highlighted in the investor presentation.

 

Order book

TRIL had an outstanding order book of Rs.1,773 crore as of March 31, 2023. Besides, the company participated in the bidding process of various tenders, valued at over Rs.3,000 crore during Q4 (January to March) of FY23. Incidentally, TRIL’s order inflows in Q4 of FY23 amounted to Rs.393 crore, including Rs.164 crore from an unnamed Central power utility, which, in most likelihood, is Power Grid Corporation of India Ltd (PGCIL).

 

Capex

TRIL has planned to enhance capacity of its manufacturing at Changodar in Gujarat, and has outlined capital expenditure of Rs.70 crore in FY24, to this effect. The Changodar plant, located 15 km from Ahmedabad, currently has manufacturing capacity of 7,000 MVA per year and is equipped to manufacture and test transformers up to 160 MVA and 245kV. TRIL has two other plants—both in Gujarat—located at Moraiya and Odhav. The Moraiya plant is by far the company’s largest — equipped to manufacture and test transformers up to 765kV rating.

Also read: TRIL Receives New Orders Worth Over Rs.140 Crore

Outlook

Discussing the outlook for ongoing FY24, the investor presentation said that there were challenges with uncertainty due to the tense situation in Russia – the Ukraine Border, China – Taiwan Border, frequent changes in repo rate by RBI, depreciating rupee, uncertainty in the forex market due to rising acceptance of Yuan, and fluctuations in copper and CRGO prices.

However with continuous focus and efforts on existing customers to get repetitive business, gaining opportunities in new markets and improving margins at all level, TRIL was optimistic to achieve a double digit growth in revenue, and corresponding increase in PAT (profit after tax) levels in FY24.

 

Featured photograph shows an external view of TRIL’s Changodar plant in Gujarat where capital expenditure of Rs.70 crore has been envisaged in FY24. (Photo: TRIL)