Transformer and Rectifiers Q3 financial report highlights an impressive 250% year-on-year (YoY) growth in net profit for the quarter ending 31 December 2024. The company’s consolidated net profit soared to INR 55.48 crore, up from INR 15.72 crore in the same quarter of FY24. This remarkable growth underscores TARIL’s strong operational performance and strategic execution.
Revenue and Profit Surge
The Transformer and Rectifiers Q3 Financial report reveals a robust 51% YoY increase in revenue, which reached INR 559.4 crore compared to INR 369.5 crore in Q3 FY24. The company’s EBITDA more than doubled, climbing to INR 84.8 crore from INR 35.6 crore in the previous year, with EBITDA margins expanding significantly to 15.2% from 9.6%.
TARIL’s tax expenses for the quarter totalled INR 18.25 crore, contributing to a rise in basic and diluted earnings per share (EPS) to INR 3.67, reflecting substantial improvements in profitability.
Nine-Month Performance Highlights
For the nine months ending December 2024, Transformer and Rectifiers’ consolidated revenue from operations rose 71.7%, reaching INR 1,342.9 crore. The company’s net profit for the period stood at INR 122.2 crore, showcasing its sustained financial growth.
Key Announcements Bolster Investor Confidence
- Bonus Share Issue: TARIL declared its first bonus share issuance in 12 years, offering one bonus share for every share held.
- Qualified Institutional Placement (QIP): The board approved a QIP worth INR 750 crore to fund ambitious capacity expansion and backward integration initiatives.
Strategic Initiatives for Future Growth
Transformer and Rectifiers Q3 Financial report also detailed the company’s transformative capacity expansion plans. By Q1 FY26, TARIL aims to boost production capacity to 55,000 MVA. The company has also entered into technology agreements for critical component backward integration, which is expected to be operational by December 2025.
TARIL – Analyst Insights
Analysts remain optimistic about TARIL’s growth potential:
- Nuvama Research revised its target price to INR 1,450, citing TARIL’s robust order book of INR 3,700 crore and growth visibility for FY25–FY27.
- Antique Stock Broking increased its exit multiple to 45x with a revised target price of INR 1,424, emphasizing exponential growth prospects and revenue guidance of INR 3,500 crore by FY26.
Stock Performance and Valuation Insights
Following the announcement, TARIL’s stock reached an all-time high of INR 1,300.45 before closing at INR 1,248, marking a 69% surge over the past year. Despite this impressive performance, analysts note that the stock continues to trade at a discount compared to peers, presenting a potential valuation gap opportunity.
Future Outlook
With a focus on high-margin products, technological advancements, and favourable demand trends, TARIL is on track for exponential growth. The company is eyeing a 3.6x revenue increase and a 10 times rise in profit after tax (PAT) by FY27 compared to FY24. Achieving its ambitious USD 1 billion revenue target over the next three years appears within reach, driven by its strategic initiatives and disciplined financial management.
Conclusion
Transformer and Rectifiers Q3 Financial Report reflects the company’s strong operational performance and forward-looking strategies. With robust financials, transformative growth plans, and positive market sentiment, TARIL presents a compelling opportunity for investors seeking long-term value. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.