Rs 5,005 Crore Order Book: Transformer Company Secures an Ultra-Mega Order from Power Grid Corporation of India; Share Price Jumps 5%
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Transformers and Rectifiers (India) Limited has secured an Ultra-Mega order from Power Grid Corporation of India Limited for manufacturing power transformers of various ratings, with execution scheduled over the next 30 months.
✨ Key Takeaways
On Tuesday, Transformers and Rectifiers (India) Limited (TARIL) gained 5.57 per cent to close at Rs 351.35 after the company announced that it had received an Ultra-Mega order from Power Grid Corporation of India Limited (PGCIL). During the trading session, the stock touched an Intraday high of Rs 356.80 and a low of Rs 328.50. Investor participation remained strong, with trading volumes rising to 134 lakh shares, significantly higher than the 30-day average volume of 38 lakh shares.
Wins Ultra-Mega Order from PGCIL
Transformers and Rectifiers (India) Limited informed the stock exchanges that it has received Notifications of Award (NOAs) from Power Grid Corporation of India Limited (PGCIL) for the manufacturing of power transformers of various ratings, along with associated works. The order has been awarded by a domestic entity and will be executed over the next 30 months.
The company has categorised the contract as an Ultra-Mega Order under its internal order classification framework. As per the company's disclosure, Ultra-Mega Orders are contracts valued at more than Rs 1,000 crore, excluding GST. While the exact contract value has not been disclosed, the classification indicates that the order exceeds this threshold.
Order Strengthens Growth Visibility
The latest order is expected to further strengthen the company's order pipeline and provide long-term revenue visibility. Power transformers play a critical role in electricity transmission by enabling efficient transfer of power across high-voltage networks, and PGCIL, India's central transmission utility, remains one of the country's largest buyers of such equipment.
With execution spread over the next 30 months, the order is expected to contribute to the company's revenues over the coming financial years, subject to the pace of project execution. The company also clarified that the contract has been awarded in the ordinary course of business, does not qualify as a related-party transaction, and that neither its promoters nor promoter group entities have any interest in PGCIL.
About Transformers and Rectifiers (India) Limited
Transformers and Rectifiers (India) Limited is one of India's leading manufacturers of power transformers, supplying products across a wide range of voltage classes for transmission, distribution and industrial applications. The company caters to utilities, power generation companies and infrastructure projects, with a strong focus on manufacturing quality, engineering capabilities and timely project execution.
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Disclaimer: The article is for informational purposes only and not investment advice.