Transformers And Rectifiers Expects Debt-Free Status, Stronger Performance By 2027

Transformers and Rectifiers India Ltd. is in a period of healthy growth, fuelled by increasing demand for transformers and strategic backward integration. Chanchal S Rajora, the group's chief financial officer and advisor to TRIL, said that while the first quarter is typically slow, the company is seeing quarter-on-quarter improvements in both revenue and profitability, with a significant pickup expected from the third quarter.

"We are not only improving our revenue but also improving our profitability quarter by quarter," Rajora said. He clarified the company's internal benchmarks, explaining, Quarter one is always a little slow; we compare ourselves quarter to quarter and not year to year. From quarter three things will start picking up, and quarter four is the best.

TRIL is focused on enhancing both its top-line revenue and bottom-line profit. "If my topline is increasing, then my bottom line is also increasing. My concentration is 10% profit before tax without any other income," Rajora added, highlighting a structured approach to profitability.

Speaking on the fundamental shifts driving this turnaround, Rajora pointed to two key factors.

"There are two things there: there is the demand of the transformers. This is increasing day by day; renewable energy is coming up, and it's a global phenomenon." He also attributed the positive change to internal strengths and changes: "The product range we have developed in the lean period is paying off. The backward integration that we did is also paying off."

Looking ahead, Rajora confidently noted that he is expecting the company to be debt-free in the next 18 to 20 months. Further, TRIL has set a revenue target for financial year 2028. "FY 28 we want to reach the revenue of Rs 8,000 crore goal," said the advisor.

The full benefits of their backward integration efforts are still to be realised, bringing further contributions to this growth.

"We are basically in the best of our time, compared to the previous years where we were just in pain. So we are looking to maximise both, but we are not greedy for gross margin, as it has reached the maximum level. We are more focused on backward payments and delivering the product in time," he added.