TARIL — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

MANAGEMENT LIMITED · Management

MR. JITENDRA MAMTORA – CHAIRMAN – TRANSFORMERS & RECTIFIERS INDIA LIMITED MR. SATYEN MAMTORA - MANAGING DIRECTOR – TRANSFORMERS & RECTIFIERS INDIA LIMITED MR. CHANCHAL RAJORA – CHIEF FINANCIAL OFFICER AND ADVISOR TO THE BOARD – TRANSFORMERS & RECTIFIERS INDIA LIMITED

Moderator · Conference Operator

MR. SUBHADIP MITRA – NUVAMA WEALTH

MANAGEMENT LIMITED · Management

Transformers & Rectifiers India Limited January 08, 2025

Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to the Transformers and Rectifiers India Limited

MANAGEMENT LIMITED · Management

Yes.

Chanchal Rajora

Now, about your second question Ganeshram as we told that CRGO is 35% of my raw material component.

That itself is quite a significant amount and CRGO is the second most expensive product also in my product line.

Ganeshram

Yes.

So, the remaining items, what will it be?

Chanchal Rajora

Sir, this is the product mix and this is lots of items - lots of components involved that we would not like to discuss here in this call.

Ganeshram

Understood.

And maybe the last one I heard you are answering another participant by saying you're being a bit selective in your order inflow.

So, if you could just give us a sense on the order that you have now accepted in the INR600 crores order, what would be the incremental margin compared to our existing margin?

MANAGEMENT LIMITED · Management

Ganeshram this is a business question which I would not like to discuss here.

Ganeshram

Understood.

Thank you sir.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Rajit Aggarwal from Nilgiri Investment Managers Private Limited.

Please go ahead.

Rajit Aggarwal

Good afternoon, sir.

Thank you for giving me the opportunity to ask the questions.

Is it possible for you to comment on the data days?

If you can't disclose your absolute numbers, how has the movement been in debtors days in Q3 compared to Q2?

Has it worsened, is it still the same or has it improved?

Chanchal Rajora

It has improved, sir.

Rajit Aggarwal

It's improved.

Great, sir.

And are there any overdues from any of the government clients, public sector undertaking?

Chanchal Rajora

There is no overdue.

Rajit Aggarwal

There is no overdue.

Okay.

And lastly, sir, is it possible to throw some more light on the acquisition that you have made as to the cost of the acquisition?

By when do you think it will be operational and by when will it start to accrue or when will the EBITDA margin start to show improvement because of that facility because of the backward integration?

Chanchal Rajora

The acquisition has already started doing our work.

It is basically an existing facility and it has already started doing our work.

The EBITDA improvement from this particular acquisition will start from the Q1 next year when this is 100% integrated with our system.

Rajit Aggarwal

Wonderful, sir.

And the cost of the acquisition?

Chanchal Rajora

Sir, with the SEBI guidelines I am bound not to disclose that.

Transformers & Rectifiers India Limited January 08, 2025

Rajit Aggarwal

Okay, sir.

Thank you.

Thank you for the time, sir.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Vignesh from Ksema Wealth.

Please go ahead.

Vignesh

Just want to understand the demand from the Europe side, sir.

Last conference, I believe we had a discussion with the European client.

So, just want to understand that.

The orders from the European client, sir.

How is the situation?

Chanchal Rajora

Look, Vignesh, the orders keep coming from all the corners, right?

European also, we got some orders in last quarter and this quarter also.

And we are in discussion at the various levels with the other clients.

But let me tell you one thing very categorically clear.

The opportunities are quite huge in India and much better than the other part of the world.

So, my focus is first to engage the opportunities which lies right now here.

And we are working on those directions.

And we are discussing with, not only with the Europeans, we are discussing with a few of the American clients also.

Very recently, few American clients have visited.

And as and when the good amount of the order comes, we always keep announcing it to the exchange also.

Vignesh

Okay sir, going forward, we see foreign orders increasing or it is mostly towards the domestic thing which will be the majority of the order book?

Satyen Mamtora

So, Vignesh, we would like to limit our export orders to 20% and not beyond that.

Rest, we want to develop India and that's why we are keeping our 80% capacity for India.

Vignesh

Okay, sir.

That was helpful.

Thank you.

All the best.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Ashish Soni from Family Office.

Please go ahead.

MANAGEMENT LIMITED · Management

It is not a high value product.

The cost of the radiator in the transformer raw material, if you consider the transformer raw material, the cost of the radiator will be around 8% to 9%, not more than that.

And there are a lot of opportunities for export for the radiators also.

But before exporting, we want to be sure that the quality which comes out of the plant meets with the requirement of the foreign customers.

So we will wait for the right opportunity.

Once fully we are satisfied, we will start exporting.

There is no dearth of the orders as such.

Most of the people who are making radiators are fully booked.

Their delivery time has gone to something like 10 to 12 months now in India.

So there is no dearth of the orders.

You can get the orders but in absolute terms, the cost of the radiators or the percentage of the radiator cost is only 8% of the total cost of the transformer, raw material cost of the transformer.

Chanchal Rajora

And secondly is that first we wanted to become 100% backward integrated in radiators for our own requirement.

And as far as the PGCIL approval is concerned, we have just initiated it for the 765 KV class approvals.

So we have just initiated it.

So it will take some time to get it.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Ishita Lodha from Svan Investments.

Ishita Lodha

My question is related to the coalitions directly…

Moderator · Conference Operator

Ishita, sorry to interrupt you there but your audio is not clear.

Could you please repeat your question?

It's still not clear.

Yes, Ishita.

Please go ahead.

Ishita Lodha

I have a question. – And I also heard that some of the raw material would be sold in the market.

How much would be sold in the market?

Chanchal Rajora

I cannot hear her question clearly.

But whatever I heard is that she is talking about the acquisition what we have done right now, right?

So, just to, if I am right, then the first target is to utilize that acquisition for completely in-house purpose.

And after that, if anything is available, we will be selling it to the peers, right?

But we say it cannot be at the present scenario.

It cannot be more than 15% of the total capacity available.

Transformers & Rectifiers India Limited January 08, 2025

Moderator · Conference Operator

Thank you.

The next question comes from the line of Abhishek Shah from Ambit Limited.

Abhishek Shah

Just a question on the post this 16,000 MBA capacity expansion.

What would be our estimated revenue capacity of our install base?

And just to clarify, our FY25 revenue target was around INR2,000 crores, right?

Chanchal Rajora

Yes, Abhishek.

Our FY25 revenue target is INR2,000 crores.

And we are still on that target.

And we hope that we will be able to achieve that.

And secondly, post this expansion, we will be somewhere around 55,000 MBA levels.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Mayank Bhandari from AMSEC.

Mayank Bhandari

Sir, as you highlighted, the order book by the end of this year would be INR4,000 crores.

Next year revenue guidance is INR3,500 crores.

The execution timeline you also highlighted is 18 to 24 months.

So, what am I missing here?

Is it like you are getting more orders, more shorter orders?

Or how INR4,000 crores of order book will translate into INR3,500 crores of revenue?

Chanchal Rajora

Okay.

Mayank, just to inform you that we have three facilities.

And all these three facilities produce different kind of transformers.

When we are talking about INR4,000 crores order book, we don't count much of the order from the distribution facility because these are the orders which are the short-time orders.

Say order comes in a month or two months time, we make the orders and give it to that.

When we talk about the INR4,000 crores order book, majority orders is for which is there for 200 plus KV plus transformers.

Right.

Our second facility, Changodar, also produce the mid-level transformers.

That is also the lead time is around three to four months time.

So, this combination is good enough to give us the targets which we are telling right now.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Nikita Goyal from Subhlaxmi Family Office.

Please go ahead.

Nikita Goyal

Hi, sir.

Congratulations on a good set of numbers.

I just have this one question.

Green hydrogen transformers which you are the sole qualified supplier, so how much market share is from this particular product?

How does this product push to your market share?

Jitendra Mamtora

The market share is today around 18 -- between 18% and 20%.

I am talking about EHV transformers.

Transformers in the air support…

MANAGEMENT LIMITED · Management

She's talking about the green hydrogen.

That has not started.

Jitendra Mamtora

Green hydrogen has not yet started.

Green hydrogen is still in prototype phase, ma'am.

The project has not taken up the project as yet.

That is a very initial stage.

They are making prototype and checking the -- Finances and all.

So, it is going to take time.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Surabhi Saraogi from SMIFS Capital Limited.

Please go ahead.

Transformers & Rectifiers India Limited January 08, 2025

Surabhi Saraogi

Hello.

Thank you for the opportunity, sir.

Sir, I have just one clarification.

In your opening remarks, you said that you have become 100% backward integrated with the acquisition of -- what was the name of the entity that you mentioned?

Chanchal Rajora

Posco Poggenamp Electrical Private Limited

Surabhi Saraogi

Okay.

It is the CRGO processing unit that you have acquired, right?

Chanchal Rajora

Yes.

Surabhi Saraogi

Okay, sir.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Gaurav Shukla from Finvestors.

Please go ahead.

Gaurav Shukla

Sir, my question is regarding -- in last conference, you have said that if you want, you can take INR1000 crores order.

And I want to know, sir, what the factors affecting the order book?

Why you cannot take much, much order?

And second, sir, regarding CRGO.

Is there any CRGO scarcity in the transforming system?

Chanchal Rajora

Okay.

Gaurav, first question is that why I am not taking this order because I don't want to pay the late delivery charges to the customers.

Second point, as I told you time and again, I was mentioning that we wanted to leverage on the pricing as well as on the payment terms.

So, we are very selective on the customers, basically on the payment terms and the pricing side.

So, that is the thing.

And as far as the CRGO is concerned, yes, CRGO is a scarcity in the country.

India doesn't produce the CRGO.

And there are -- the processing of the CRGO is more important because there are not much good processing centers are available in the country.

Moderator · Conference Operator

Thank you.

The next question…

Chanchal Rajora

Subhadip, can we please take two last questions, please?

Moderator · Conference Operator

Okay, sir.

The next question comes from the line of Amit from PL Capital.

Please go ahead.

Amit

Yes.

So, first question is kind of a clarification.

You talked about a $1 billion revenue in next three financial years.

Are we talking cumulative number of 9000 to 10,000 collectively in 36 months?

Chanchal Rajora

I don't think that I should reply this question, Amit.

How can I reach to a $1 billion revenue if you are talking about a collective number of 5 years or 4 years?

Amit

I just wanted a clarification on what you have written in your second question.

Chanchal Rajora

I don't think that I should even reply this number.

I am talking about a year number, a year revenue.

Transformers & Rectifiers India Limited January 08, 2025

Amit

Annual $1 billion, right?

Chanchal Rajora

Yes.

Amit

And second…

Moderator · Conference Operator

We have lost the line for Amit.

We'll move on to our next question from the line of Naman Parmar, Niveshaay Investments.

Please go ahead.

Naman Parmar

Yes, good afternoon, sir.

Thank you so much for the opportunity.

So, I just wanted to understand on the macro side.

So, how much the transmission work has been completed till now?

Being a largest player in the power transformer, you will be better able to give understanding on that?

And secondly, I wanted to understand on the lead time in the export market?

Jitendra Mamtora

See, we have no idea about how much transmission projects are completed because, every day, because of the new solar plants coming up, the requirements are getting bigger and bigger.

But we have no absolutely idea about how many projects are there today.

We only know about how many tenders are there.

So, we don't keep track of the transmission projects.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, that was the last question.

I now hand the conference over to Subhadip Mitra for his closing comments.

Subhadip Mitra

I would like to thank the management for giving us this opportunity to host the call today and for spending so much time with us answering these questions.

May I now hand over the call to sir for his closing comments?

Jitendra Mamtora

Thank you everyone, for participating in this conference call.

And we really thank you all for your good wishes, for our good results.

Thank you very much.

Moderator · Conference Operator

Thank you.

On behalf of Nuvama Wealth Management Limited, that concludes this conference.

Thank you for joining us and you may now disconnect your lines.

Questions and answers

“Transformers & Rectifiers India Limited

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, we will now begin the question-and-answer session.

The first question comes from the line of Raj Sarraf from Finvestors.

Please go ahead.

Raj Sarraf

Sir, congratulations on a very good set of numbers.

And sir, while going through your presentation, I noticed that the order booking is in Q3 is INR631 crores, which was actually more than INR1,000 crores in Q2 and even in Q1 the number was very good.

So the dropping in order booking numbers, how to read that while going through media and all available resources, we are coming to know that the transformer is in a very right spot.

So this is the question, sir.

And the second question is, sir, the QIP, which we have planned for INR750 crores.

So are we looking for any position near term or what is this for?

Chanchal Rajora

Raj, thank you for joining us.

As far as the order book is concerned, Jitendra will take you to that thing.

And as far as the QIP is concerned, let me tell you that we have no intent to raise the money near future.

It is just enabling approval we have taken from the Board so that if any good opportunity comes across, we are ready for that.

We have no intention right now to raise any funds in next two quarters or three quarters.

As and when a good opportunity comes, we would definitely would like to come to the investors for support.

As far as order book is concerned, this is a deliberated strategy of the company as we don't want to take the orders in a hurry.

We are already booked.

And now we are more focused on the orders, which has got the high margin as well as the payment terms are quite good.

We have made a very clear strategy that there is no hurry in going on each and every order.

We have a very strong order book already in place.

And we also have a very strong inquiry in place.

So, orders will be taken as and when we feel that is the right order for the organization.

Thank you.

Raj Sarraf

One question is, sir, the margin which I am seeing in Q3 is 16.5, which was about 17% in Q2. And we are actually on the scale of operation, we are producing so much now.

So, why this scale of operation is not kicking in, sir?

Am I reading something else?

Chanchal Rajora

Sorry, I did not understand your question.

Raj Sarraf

Sir, the EBITDA margin, sir, which is right now 16.5%, which was in Q2, was about 17%.

And we are actually increasing our scale of operations.

So, in this case, sir, the margin should increase or am I reading something, I'm missing something else, sir?

Chanchal Rajora

Look, Raj, the EBITDA margin is just 0.7%, which is different from the Q2. You need to understand that we have a different product mix and we have a different product portfolio.

So, it basically depends on the product portfolio.

In some products, we have some higher margin, some we have less margin.

So, this margin is going to remain in this range itself.

But apart from that, the significant thing I would like to address to you, though we have the 0.9% to 0.7% less EBITDA as compared to the last quarter, our PAT line has increased as compared to the last quarter, which is a very significant achievement for us.

And as I have been telling in Transformers & Rectifiers India Limited January 08, 2025 all the introductions that my more emphasis is on the PAT, that I want to reach the 10% PAT level.

And I'm happy to say that we are very, very close to that.

Raj Sarraf

Yes, thank you, sir.

And, sir, the long-term guidance of $1 billion revenue, which in the presentation in the last conference call, which was, sir, we are seeing that in the next three years, we'll be meeting $1 billion revenue.

And then, sir, when the CFO spoke, sir, the timeline was three to four years.

So, is it three years or four years, sir?

Chanchal Rajora

Raj, you know, the metrics keep changing, right?

We want to achieve it in the next two years' time.

But how the metrics work out, it will depend on that.

So, three to four years, I think, is a reasonably very good line.

Raj Sarraf

Yes, okay.

Thank you.

Thank you very much, sir, and congratulations once again for posting a performance like that, sir.

Thank you very much.

Chanchal Rajora

Subhadip?

Moderator · Conference Operator

Yes, sir.

Please go ahead.

Chanchal Rajora

I request that at one point in time, if we can take one question, so that others will have the opportunity also.

Moderator · Conference Operator

Okay, sir.

I'll make the announcement as well.

Chanchal Rajora

Thank you.

Moderator · Conference Operator

Ladies and gentlemen, a request from the management is to restrict to one question per participant.

Our next question comes from the line of Manish Ostwal from Nirmal Bang Securities Private Limited.

Please go ahead.

Manish Ostwal

Yes, sir.

Thank you for the opportunity.

Most of the questions already answered.

Only I have one question.

Where the current gross debt on the balance sheet and the net working capital absolute figure?

Satyen Mamtora

Sorry, we didn't get your question, Manish.

Manish Ostwal

I'm asking sir, what is the gross debt on age on 31st December and what is the working capital figure at age on 31st December?

Chanchal Rajora

Manish, I'll address this question when I'll present you my quarter 4 audited numbers, please.

Because since we have not disclosed the balance sheet, so under the guidelines of SEBI, these figures cannot be disclosed here at this moment.

Manish Ostwal

Okay.

And secondly, sir, we are hearing so much of debate on the slowdown of the economy, government spending.

So compared to the H1, how do you see the things in your business, whether things are picking up or gradually picking up?

Can you make comment on that?

That would be great.

Thank you.

Transformers & Rectifiers India Limited January 08, 2025

Satyen Mamtora

Manish, if you look at our this quarter order book, that stands at INR631 crores.

And our unexecuted order book for the next 18 to 24 months is INR3,686 crores.

So there is no slowdown as such in terms of infrastructure development in India.

We have inquiries worth INR19,000 crores under negotiation or in bidding phase.

So there is a lot of opportunity for all this business.

Manish Ostwal

Okay, sir.

Thank you.

Moderator · Conference Operator

The next question comes from the line of Subhadip Mitra from Nuvama Wealth Managment Limited.

Please go ahead.

Subhadip Mitra

Yes, thanks.

So two questions from my side.

Firstly, just wanted to understand a little bit clearly on the guidance.

I think I heard in your opening comments that we are looking at about INR3,000 crores revenue by FY'26.

Chanchal Rajora

INR3,500 crores, Subhadip.

Subhadip Mitra

INR3,500 crores.

And for FY'27, sir, is there a number?

I think we were looking at a number closer to INR4,000 crores, INR4,500.

Chanchal Rajora

Let us achieve the next year numbers first.

Subhadip Mitra

Understood.

And the margin trajectory, I think in the past also you have mentioned that you are looking to move towards 17% plus kind of a margin by FY'27.

Are we still holding on to that?

Satyen Mamtora

Currently we are.

Subhadip Mitra

Understood.

Secondly, in terms of, one, the utilization of the QIP funds that we raised some time back and the benefit of the backward integration and M&A that you are seeing.

So how much of the quantum has got utilized?

How much is yet to be done?

And secondly, how do you see this backward integration into CRGO and the other proposed M&A activities helping in terms of your margin expansion?

Chanchal Rajora

Subhadip, the earlier participant I told that the balance sheet things we cannot disclose right now.

So we are submitting our details about the QIP utilization to the exchange time and again so that I can't right now tell you these things.

Yes, but we are on the right path to invest in funds on the right place and right proposition.

That is one thing I can make you sure that it is going to add a significant improvement in my top line as well as in my bottom line.

And as far as how this backward integration is going to benefit us, I would request my Chairman to put up his thought on this.

Jitendra Mamtora

Thank you, Chanchal.

It is going to be minimum 4% increase in the PAT when we put all the projects online, on track.

Because it is not -- I mean, some of the product is meant for us, some of the products also for us and for selling it to the market.

But the advantage which we are going to get using our own product will reduce my raw material by about 4% total.

Subhadip Mitra

Understood.

And you envisage all these benefits panning out by FY'27 or could it take slightly longer?

Transformers & Rectifiers India Limited January 08, 2025

Jitendra Mamtora

No, before that.

Subhadip Mitra

I read you.

Okay, understood.

That is it from my side.

Thank you so much.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Gaurav Shukla from Finvestors.

Please go ahead.

Gaurav, please proceed with your question.

Since there is no response, we move on to our next question which is from the line of Shivam Dave from Prodigy Investments.

Please go ahead.

Shivam Dave

Hi, congrats on the great set of numbers.

In terms of the 15,000 MVA capex that we are incurring right now, where are we in terms of the process right now?

Chanchal Rajora

Shivam, this project is on quite high track and we expect this to be completed by February, March and we expect early next year the operation will start and also if you have seen in the presentation, our chairman has said that from this quarter we will start taking orders for that expansion.

Shivam Dave

So, it should start from Q1 next year?

Chanchal Rajora

Yes.

Shivam Dave

Okay.

Thank you.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Ganeshram from Unifi Capital.

Please go ahead.

Ganeshram

Congratulations on the numbers.

I just have two questions.

First on the INR3,500 crores guidance for FY26, how much of that will be coming from our existing capacity and how much from the capacity that you will be commissioning in Feb, March?

So, just if you could give us some granular details on the ramp-up and how that fits into your guidance.

And the second one is with the CRGO backward integration.

So, I understand it's 30%, 35% of your cost, but if you could just give us a broad scale that on a sustainable level, what is the RM cost in our transformers on a blended basis and other than the CRGO, what are the other components that influence the cost?

Chanchal Rajora

Ganesh, first of all in this 3,500 there is no addition of the facility which is coming up.

All is from the existing set of the system.

This is one.

As I told you earlier also, we have not even started taking the orders for the expansion facility.

You can see that I already have a INR3,600 crores order book.

So, we'll be able to do that.

Satyen Mamtora

So, Ganesh, the 3,600 order book is for the next 18 months to 24 months.

So, we would be doing INR3,500 crores partly from the existing facility and partly from the new facility that we are going to start.

Ganeshram

So, there is no additional amount we should expect over the INR3,500 crores from the new facility you're saying.

This will be executed, but I mean basically the existing order book will be spread across the new facility?

Transformers & Rectifiers India Limited January 08, 2025

Out of 90,000 order book, how many are we expecting to convert for our order?

Chanchal Rajora

Well, brother, Ashish, it keeps getting converted as and when we want.

Right now, as I told you that we are not focused on the taking the left and right orders.

We are more focused on the orders which are high yield generated to us and quick payment things, right?

If I want to take the orders, I can take INR1,000 crores order every month.

That is right now the scenario of the market.

But we are very, very selective on the order size.

Is it like maybe 25% of 90,000 approximately?

Any guesses?

Chanchal Rajora

Sir, we have a target as I told you that in any of our discussions, we will keep telling that we will be having an order book of INR4,000 crores plus by the end of this financial year.

And we are working on those direction completely.

Okay.

Thank you.

All the best.

Transformers & Rectifiers India Limited January 08, 2025

Moderator · Conference Operator

Thank you.

The next question comes from the line of Vishnu Boyapatil, an investor.

Please go ahead.

Vishnu Boyapatil

Hi, sir.

Congratulations for the good set of numbers.

And I am glad to see as an investor for looking at these numbers.

Thank you, sir.

And my question is from that side, previously, you had said that 19,000 enquiries which we will convert 25% to 30% conversion rate.

Is it right, sir?

Satyen Mamtora

Generally, yes.

Vishnu Boyapatil

And is it intact in this quarter also, 25% to 30% or any change in that percentage conversion?

Satyen Mamtora

It is difficult to say because the market is very, what should I say, good at this point of time.

So, who wants to take the order, the people, the companies who does not want to take the order because they are full with the orders, then their prices will be higher like us.

We have quoted, now we have started quoting at higher margins now.

So that, the conversion may be not 25%, 30%, it may be 15% to 20%.

Vishnu Boyapatil

Okay, I understand, sir.

Thanks for that one.

And next question is, we had PAT margin, PAT profit after tax nearing to 10%.

In coming quarters, we may cross the 10% confidently, sir?

Chanchal Rajora

Vishnu, basically, if you have been hearing all the conversation, I always say that my target is to reach to the 10% PAT levels.

And sustainable mode, if I continue that, that will be a great achievement for us.

Vishnu Boyapatil

Yes, okay.

And we are going to for QIP, is it for both organic and inorganic growth in near future?

Chanchal Rajora

The first question which I answered is that there is no plan of raising fund right now.

We have just taken enabling approval.

And as and when if any opportunity comes, we will think over that.

But in near future, there is no such plan.

Vishnu Boyapatil

Yes, okay.

That's all from my side, sir.

Thanks for the opportunity you have given me, sir.

Thank you, sir.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Vivek Gautam from GS Investment.

Please go ahead.

Vivek Gautam

Congratulations on excellent set of numbers consistently after quarter after quarter.

My query is about the export potential and any risk of duties being levied by the Trump government and the increase in impact of increased Red Sea and the factors leading to increased freight rate and opportunity size in India expected growth rate.

Thank you.

Chanchal Rajora

Okay, Vivek, just if you heard, MD sir has just told that we don't want to increase our export abruptly.

We just want to, we will just focus that we should have a 20% order book by end of next financial year from the exports.

And we would like to restrict on that.

The opportunities lies in India are much, much better than the export.

Transformers & Rectifiers India Limited January 08, 2025 And we first wants to adopt the policy of India first.

As far as the government policies and all this concern, we don't see any changes much in these policies coming.

And freight rates are the rates which is keep coming and going.

And generally now we have stopped taking the orders on the CIF basis.

We are more focused on the orders on the FOV basis or exports basis.

So changes in the freight won't affect on us.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Jainam from Saltoro Investment.

Jainam

My question is about the new fully automated radiator facility that you are seeking approval from PGCIL.

So I wanted to understand -- I guess it's a high value product.

If you could explain what is its utility and will it be focused on the exports or domestic market?

And at what stage of PGCIL approval are we?

If you could explain that, that would be great.