Central power utilities accounted for a dominant share in the outstanding order book position of Transformers & Rectifiers (India) Ltd [TRIL], as of December 31, 2023.
According to an investor presentation by TRIL, the company’s outstanding order book position, as of December 31, 2023, stood at Rs.2,572 crore. Of this, Central utilities (including Power Grid Corporation of India Ltd and other Central PSUs) accounted for a dominant share of 45 per cent.
This share has appreciably risen from 24 per cent, as of March 31, 2023, when the overall outstanding order book position was Rs.1,499 crore. (see table)
Correspondingly, the share of state utilities in TRIL’s order book dropped from 23 per cent, as of March 31, 2023, to 14 per cent as of December 31, 2023.
Industrial customers also had a lower share of 26 per cent as of December 31, 2023, as against 48 per cent as of March 31, 2023.
In terms of product mix, 62 per cent of the outstanding order book of Rs.2,572 crore, as of December 31, 2023, came from power transformers, followed by reactors with 30 per cent. The remaining 8 per cent was spread over distribution, furnace and rectifier transformers.
Order inflow
During Q3 (October to December) of FY24, TRIL witnessed a new order inflow of Rs.701 crore, inclusive of Rs.72 crore worth of export orders.
Backward integration
The presentation also observed that TRIL has achieved backward integration in various products such as radiators, transformer tanks and current transformers (all up to 765kV), as well as oil-impregnated paper (OIP) bushings up to 245kV. This backward integration is helping TRIL meet 10-15 per cent of its total raw material requirement through in-house production.
Outlook
The presentation also highlighted that transformer market is poised for significant growth, particularly as federal investments in the development and implementation of renewable sources of energy increase, underpinning the ongoing support to create better and more efficient electricity infrastructure.
TRIL also explained that pent-up demand from industrial expansions backed by pickup in capex is leading to higher consumption of power in India leading to improved order book of transformer manufacturers.
TRIL, a manufacturer of the entire range of transformers – power, generation, T&D, industrial and specialized – is estimated to have a market share of 22-25 per cent in the power transformer segment, the presentation suggested.
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Featured photograph shows TRIL’s manufacturing facility at Changodar in Gujarat, equipped to produce medium-voltage power transformers, among other products.
