Transrail Lighting Ltd. – FY25 & Q4 FY25 Highlights Financial & Operational Performance: - FY25 Revenue: ₹5,308 crore (+30.2% YoY); Q4 revenue: ₹1,946 crore (+39.8% YoY). - Margins & Profitability: FY25 EBITDA margin improved to 12.73%; Q4 margin at 12.2%. PAT increased 41% YoY to ₹326.63 crore. EBITDA grew 42%, driven by higher execution and efficiencies. - Cash & Debt: Gross debt at ₹1,167 crore, net debt reduced to ₹472 crore; strong liquidity at ₹656 crore; credit rating upgraded to A+. Order Book & Pipeline: - Order Book: Exceeds ₹15,915 crore as of March 2025, with long-term contracts ongoing (3-6 years)—covering both domestic and international markets. - Order Intake: ₹9,680 crore in FY25 (+120%), with focus on India (Power Grid capex plans) and international projects in Africa, Middle East, and South Asia. - Order Book/Revenue Ratio: ~10–11x, indicating strong future revenue visibility. Segment & Market Highlights: - Power & Transmission: 92% of order book; focus on transmission lines, substations, and HVDC (₹1,000 crore+ orders; pipeline ~₹5,000 crore). - International Markets: Africa main growth driver, with projects in Kenya, Tanzania, and Ghana; focus on multilateral funding (World Bank, African Development Bank). - India: Power Grid capex driving strong project execution; targeting 8–10% market share in domestic T&D. - Civil & Poles: Integrated civil works (~4%), poles (~1%). Capacity & Capex: - Utilization: 95% for towers, 100% for conductors. - Expansion: Capex of ~₹48 crore in FY25; Phase 1 expansion (₹25 crore) increases capacity to ₹55–60 crore, with Phase 2 (~₹23 crore) targeting 110–120 crore. - Future Capex: Additional ₹50 crore planned for FY26, mainly for land and infrastructure, with more in FY28. Cost & Margin Management: - Cost Controls: Subcontracting at 15-20%; supply chain and project mix improvements supported margin stability. - Margin Outlook: EBITDA margins steady at 12–12.25%; margins supported by project mix, cost efficiencies, and operating leverage. - Working Capital: 74 days (excluding IPO funds); expected to stay at 75-85 days, driven by receivables (mainly in international projects) and inventory. Global & Industry Outlook: - Demand Drivers: Strong domestic (India) capex in power sector; international opportunities via multilateral funding. - Trade & Tariffs: No impact from tariffs on India’s exports; potential volatility in international trade lanes, but management expects normalization. - Bid Pipeline: Over INR 1 lakh crore globally; 8–10% win ratio. Strategic & Risk Management: - Selective Bidding: Benefits from a risk-aware approach; focuses on large, quality projects in India and key international markets. - Execution Risk: Focused on timely project rollout, with quality and safety emphasized. - International Challenges: Navigating geopolitical and regulatory hurdles; no material losses on receivables historically. - No Major Equipment Shortages: Sourcing globally to mitigate supply chain risks. Management Outlook & Confidence: - Growth & Margins: Confident of 23–25% revenue growth and stable margins in FY26, supported by a strong order pipeline and capacity expansion. - Less Volatile Capex: Favoring operating leases and project-specific investments; aiming for disciplined capital deployment. - Bright Outlook: Positioned as a key player in India’s power sector and international infrastructure projects, with a focus on profitability and strategic selectivity. Summary: Transrail Lighting delivered a strong FY25 with record order inflows, significant capacity expansion, and robust margins. The company commands a healthy order book, with future revenues backed by long-term projects in India and Africa. Management remains cautiously optimistic about maintaining growth trajectories, managing geopolitical and macro risks, and optimizing costs. Focus on operational excellence, selective bidding, and strategic regional expansion underpin its optimistic outlook for FY26 and beyond.