Financial Performance Q1 FY27

  • Revenue from operations: Rs. 134.60 crores
  • EBITDA: Rs. 29.23 crores
  • Profit After Tax: Rs. 20.86 crores
  • Capacity utilization: 60-65% during the quarter

Operational Challenges

  • West Asia crisis caused persistent increase in shipping costs (3-5 times higher for certain geographies)
  • Slower export dispatches due to increased landed cost for customers despite ex-works terms
  • Domestic business affected by delayed price pass-through of commodity price escalation
  • Negotiations with customers extended through much of Q1, particularly severe in April-May

Order Book & Business Outlook

  • Current order book: Rs. 500 crores (over and above shipped orders)
  • Order book composition: 70% domestic, 30% export
  • Execution timeline: Orders for Q2, Q3, and some for Q4
  • FY27 revenue guidance maintained at approximately Rs. 800 crores
  • Expected capacity utilization: Nearly 100% for existing 7,500 MVA capacity in FY27

Capacity Expansion Update

  • Phase-3 expansion adding 6,500 MVA capacity
  • Project on track for commissioning in April 2027
  • Current status: Civil foundation work completed, PEB erection and utility infrastructure work progressing
  • All equipment ordered
  • Additional 4.5 acres of land purchased for future expansion

Margin Outlook

  • Q1 margins affected by lower export mix and partial pass-through of higher raw material prices
  • Export margins typically ~10% higher than domestic
  • For existing orders, 50-60% of price rise passed to customers
  • Current orders at market prices with reasonable margins
  • Margins expected to improve in Q2-Q4 compared to Q1

Geographic Business Mix

  • Export markets: Middle East, North America, Africa
  • Domestic focus increased to compensate for export challenges
  • Geographic mix may change if West Asia situation persists
  • Underlying customer demand remains firm across all regions

Product Development

  • Expansion includes entry into 220 KV transformer segment
  • Prototyping for larger transformers expected 3-4 months after production start
  • Initial margins for new products may be lower to build references
  • Discussions ongoing with customers for larger transformers

Management Commentary

  • Business momentum expected to be notably better in Q2 vs Q1
  • No order cancellations, only delivery deferments
  • Products are custom-made with lead times of 10-16 weeks
  • Proactive shift from export to domestic focus implemented
  • Quality, service, and shorter lead times maintain competitive advantage