Q1FY25 Concall Summary
Business Updates
- The order backlog as on end of the quarter was at Rs 8539 crores which is highest since inception of the company
- The new greenfield plant at Chennai has received orders not just from India but from other parts of the world
Participants
Goldman Sachs
HDFC Securities
LIC Mutual Fund
PL Capital
Birla Mutual Fund
UBS
Jupiter Financial
QnA
- At end of FY25 the EBITDA margins will get into double digits
- There is a lot of bidding activity in the transmission space and due to the elections ongoing there were delays but it will accelerate going forward
- The first priority is to serve the domestic market, as there is tremendous demand in the country. The management is keeping provisions to cater to demand in the world as well
- The company initially had 10% of sales from exports which has now gone around 30% of revenues without even taking large scale orders from abroad
- One of the largest producers of medium voltage transformers in India and also the world with decent market share in the country
- Globally the parent will be investing $1.5 billion to enhance the capacity of transformers and in India the company has added capacity with new greenfield expansion
- The project in Australia that was announced was from the factory in Chennai and demand is coming from all across the world
- Going forward India can become a manufacturing hub for transformers to the world as there are enough resources to do the same
- In terms of exports already gone above 25% of revenues and trending upwards from there as well towards 30%
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