Transrail Lighting Limited has informed the Exchange about Transcript of the Earnings Call held on 26th May, 2025 post approval of Audited Financial Results for quarter and year ended 31st March, 2025
30th May, 2025
To Sr. General Manager Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400001
To Sr. General Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai - 400 051
Scrip Code: 544317
Scrip Symbol: TRANSRAILL
Sub: Transcript of Earnings Call post approval of the Audited Financial Results for quarter and year ended 31st March, 2025
Ref: Regulation 30 read with Schedule III of SEBI LODR
Dear Sir / Madam,
Pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Transcript of the Earnings Call held on 26th May, 2025 post approval of Audited Financial Results for quarter and year ended 31st March, 2025.
You are requested to take the aforementioned on your records.
For Transrail Lighting Limited
Monica Gandhi Company Secretary and Compliance Officer
Encl: As above
TRANSRAIL LIGHTING LIMITED Corporate & Registered Office: 501 A, B, C, E, Fortune 2000, Block-G, Bandra Kurla Complex, Bandra East, Mumbai - 400051, Maharashtra, India Tel: +91 22 61979600 | Web: www.transrail.in | CIN: L31506MH2008PLC179012
“Transrail Lighting Limited
Q4 FY '25 Earnings Conference Call”
May 26, 2025
E&OE. This transcript is edited for factual and Grammatical errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on May 26, 2025, will prevail.
MANAGEMENT: MR. RANDEEP NARANG – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – TRANSRAIL LIGHTING LIMITED MR. DEEPAK KHANDELWAL – CHIEF FINANCIAL OFFICER – TRANSRAIL LIGHTING LIMITED
MODERATOR: MR. PRATHAMESH SAWANT – MIRAE ASSET CAPITAL
MARKETS
Page 1 of 17
Transrail Lighting Limited May 26, 2025
Moderator:
Ladies and gentlemen, good day and welcome to the Q4 and FY '25 Earnings Conference Call
of Transrail Lighting Limited. As a reminder, all participant lines will remain in the listen-only
mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal the operator by pressing
star, then zero on your touchtone telephone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Prathamesh Sawant from Mirae Asset Capital Markets.
Please go ahead.
Prathamesh Sawant:
Yes, thank you, Rayan. Good afternoon everyone and a very warm welcome on this rainy
afternoon to Q4 FY '25 earnings call of Transrail Lightning Limited. From the senior
management team, we have with us Mr. Randeep Narang, Managing Director and CEO, and Mr.
Deepak Khandelwal, Chief Financial Officer. Without any further ado, I would now like to hand
over the conference call to Mr. Randeep Narang, Managing Director, for his opening remarks,
post which we'll open up the floor for Q&A. Thank you and over to you, Randeep sir.
Randeep Narang:
Good afternoon everybody and thank you for joining this call on a lovely sunny day, stroke a
monsoon day. It's really changed, the weather change has happened. So thank you for joining. I
have with me our CFO, Mr. Deepak Khandelwal. Performance for quarter and full year has been
really excellent and we'd like to share more details.
We are backed with a very diverse board of professionals and we have our Executive Chairman
Mr. Bagde and myself working closely. Board brings valuable insights across power,
infrastructure, finance, governance, HR and public policy. We also in operations have highly
competent management team which is led for each business vertical and support functions and
they are also best in class.
Now I'd like to talk about our financial year '25 results. The year has been of strong execution
and disciplined growth. We have delivered on commitments we made to our stakeholders while
we met our revenue guidance, we surpassed our margin projections and we have robust growth
coupled with improved operational efficiencies which reflects on our ability to scale profitability
going forward.
For year '25 we made significant progress in project execution in key geographies. While our
CFO will talk about financials, I'd like to share that our operations stood at a revenue of INR
5,307 crores which has grown by 30.2% over last year, EBITDA margin expanded by 102 points
to around 12.73%, profit after tax stood at INR 326.63 crores delivering a strong growth of 40%
over previous year.
Talking about quarterly numbers, we reported a strong growth on key performance, revenue
grew by 39.76%, our EBITDA grew by 40.77% on year-on-year basis, EBITDA margin was
12.2% and PAT growth was 26.93%.
We have completed important year and important projects during this year including
transmission lines, substations in India and Africa, some of the important projects completed
during the year were transmission line packages in East and North-East of India, railway
electrification corridors in South and Central-East, rural electrification and substations in select
African countries which are always funded by multilateral funding agency.
Page 2 of 17
Transrail Lighting Limited May 26, 2025
The projects were executed with high level of operational discipline, safety compliance
reinforcing our reputation as a reliable EPC partner. The order book and our industry outlook,
what we have today is order book with L1 of INR 15,915 crores out of which L1 is INR 1,364
crores which provides us a strong revenue visibility in the next 24 months.
In our total un-executed order book, the T&D business is 92% and within T&D our geographical
mix 51% is domestic and 49% is international project. This year we booked orders worth INR
9,680 crores which is not only a growth of 120% year-on-year but the highest order book we
have booked in Transrail.
The business outlook on the T&D sector both in India and international continues to be strong,
continuous trust on great strengthening in expansion drive by the rising power demand in most
countries enhanced by energy transition.
We are encouraged by the pipeline of projects which are expected to come for bidding and
expertise coupled with strong association with major players in the sector helps us to sustain and
deliver balanced growth in quarters to come. We see a strong traction in tendering activities in
the industry. We are focused on securing quality orders and aligning them with the execution
strengths.
We are very selective in our bidding. We work on the right margin, the right client and the right
geography and we believe that this will help us maintain profitability as we go forward.
Now I invite our CFO Mr. Khandelwal to help us through the financial highlights for the quarter
and year-ended 31st March.
Deepak Khandelwal:
Thank you Sir. Good afternoon to everyone on the call. I will now take you through our financial
performance for Q4 and FY '25. During the fourth quarter of FY '25 we reported a strong growth
on all our key performance parameters. Our revenue from operations for the quarter stood at
INR1,946.02 crore, registering a year-on-year growth of 39.76%. Our EBITDA for the quarter
was INR237.43 crore, up by 40.77% on year-on-year basis.
The EBITDA margin for the quarter stood at 12.2% versus 12.1% in Q4 of financial year '24.
Profit after tax for the quarter came in at INR 126.57 crore, which represents a year-on-year
growth of 26.93%. For the full year of financial year '25, our revenue from operations stood at
INR 5,307.75 crore, which is a growth of 30.2% compared to FY '24.
Our EBITDA grew by 41.53% to INR 675.90 crore. The EBITDA margin expanded by 102
basis points to 12.73%. Profit after tax for the year stood at INR326.63 crore, delivering a strong
growth of 40.07% over the previous year. From a balance sheet perspective, we remain in a
comfortable position.
Our net debt-to-equity ratio improved to 0.34 times as of 31 March 2025 compared to 0.56 times
in FY '24. Our return on capital employed, ROCE, for the year stood at 24.7%, which has
improved from the previous year. Our working capital days excluding IPO funds was well
managed and stood at 74 days at the end of the year.
With this, I hand the call back to Mr. Narang.
Page 3 of 17
Randeep Narang:
Thank you Deepak. So, in this context, we are happy to share that Transrail is well positioned to
Transrail Lighting Limited May 26, 2025
capitalize on the opportunities. With a legacy of more than four decades, footprint in more than
59 countries, expertise across Transmission & Distribution, Railway electrification, Poles &
Lighting infrastructure and Civil, we build a business model and a team, more importantly a
team that is diversified, resilient and future ready.
We have large-scale manufacturing facilities in India for galvanized lattice towers, overhead
conductors, galvanized monopoles, in addition to a well-accredited tower testing facility. To
cater to the increasing demand and support of a growing order book, we are increasing our
capacity of Towers and Conductors.
Our investments in in-house engineering, design, testing infrastructure, our execution track
record across challenging terrains and our prudent financial management has helped us to
emerge as a trusted partner to our clients and government utilities.
To conclude my opening remarks, I reiterate as, I mentioned this in the previous call that we at
Transrail, the management team, maintain a simple philosophy of Simplicity, self-confidence
and Speed. Taking inspiration from Mr. Jack Welch of GE, we believe that we are committed to
continuous growth, strong execution and value creation for our stakeholders.
I would like to open this forum for questions and answers.
Moderator:
The first question comes from the line of Mahesh from LIC Mutual Fund. Please go ahead.
Mahesh:
Hi, sir. Thank you so much for the opportunity. Sir, last year performance was very impressive.
We grew more than 30%. So, now the current order book is around INR14,500 crores. So, based
on the execution, what kind of growth we are anticipating in the current year?
Randeep Narang:
Thanks, Mahesh. Good question. Our guidance is that we will grow our revenue by 23% to 25%
over what we have achieved in March '25 and this trajectory we know can be achieved through
our execution and the fact that we have order book to back up.
Mahesh:
And, sir, the EBITDA margins last year was around 12.74%. So, given the growth, we are
anticipating 20%. Will there be improvement in EBITDA as well?
Randeep Narang:
See, we in our RHP have given the guidance in December of around 11.99 or 12% EBITDA.
Our Q4 EBITDA was 12.2%. Our guidance remains the same at 12% to 12.25% EBITDA
because we know the margin profile of the order book we have which is, of course, the best in
the industry as we speak.
Moderator:
Thank you. The next question comes from the line of Hardik Gori from KRIIS PMS. Please go
ahead.
Hardik Gori:
Thank you for the opportunity and congratulations on a great set of numbers. So firstly, sir, could
you also provide the order execution details for Bangladesh in Q4 FY25?
Randeep Narang:
So actually, our execution post the September’s unfortunate incident has been pretty much
consistent and we have executed in the quarter almost INR 580 odd crores of revenue. Full year
Page 4 of 17
around close to INR 1,200 crores of revenue which is what we had planned and we have caught
up on the delays which happened for a month or month and a half.
Transrail Lighting Limited May 26, 2025
Hardik Gori:
Got it, sir. Got it. And what are the outstanding receivables out of the total amount as of FY25?
Randeep Narang:
So actually, we have got a good amount of traction on the funds because these are priority
projects. So we have got almost 60 to 70 million (USD). Our outstanding is based on the work
done and the build-in process. It is approximately around INR 400 crores overall for Bangladesh.
Hardik Gori:
That's really insightful, sir. And secondly, sir, Power Grid has announced a capex budget of INR
35,000 crores for FY27 and FY28, INR 45,000 crores. So sir, what portion of this capex do we
expect to capture?
Randeep Narang:
Our current market share is around 8% to 10% and this is what we intend to achieve this year
with Power Grid which is a good number and it gives us a good base to execute in India.
Hardik Gori:
Got it. Got it. And, sir, what is the current size of bid pipeline and the composition of the same?
Randeep Narang:
As you are aware that we bid domestic and global and the pipeline is pretty strong. As you have
seen yourself, 35,000 (INR crore) itself is Power Grid and then we are talking about global
players. Africa, there is a growth of expected 20% on the current opportunity. So we are talking
about the global market and domestic market and the pipeline will be more than INR1 lakh
crores.
Hardik Gori:
Got it. Got it. Got it. And, sir, any strategic initiatives underway to expand into regulated markets
like US and Europe?
Randeep Narang:
So we are not looking at doing EPC in US and Europe for sure. We are looking at some seed
marketing of product sales of towers and conductors which again we are going slow. It is a wait
and watch and strategically seeing how things emerge. So, Europe and US is really not in our
agenda today.
Hardik Gori:
Got it. Got it. And lastly, an accounting question. So, this quarter our effective tax rate was
around 29%. So, sir, what is the sustainable tax rate that we are expecting in the coming financial
years?
Deepak Khandelwal:
Tax rate will remain similar, almost in the same line of there is no change much is going to take
place in the current year.
Hardik Gori:
All right. All right. That was really helpful. That's all from my side. Yes. Thank you.
Moderator:
Thank you. The next question comes from the line of Pritesh Chheda from Lucky Investment.
Please go ahead.
Pritesh Chheda:
Can you tell us the market share of your inflow in FY25? India inflow?
Randeep Narang:
So the total INR 9,680 crores. We had INR 6,000 odd crores from the India market.
Pritesh Chheda:
And what was your market share in it?
Page 5 of 17
Transrail Lighting Limited May 26, 2025
Randeep Narang:
Market share depends on different verticals.
Pritesh Chheda:
No, no. In T&D. Sorry, in T&D. Sorry, to be very clear.
Randeep Narang:
In T&D, we would have a 10%-12% market share.
Pritesh Chheda:
Okay. The second question is, on the TBCB projects which have been given out to PowerGrid
at about INR 60,000 crores in FY25, which means market would have got about lakh crores in
TBCB projects. Out of that, how much is ordered out to T&D companies?
Randeep Narang:
That's a difficult question because what we know is what has been announced. So, I think around
INR 30,000 crores have been announced. The rest is still on the annual.
Pritesh Chheda:
Sorry, you are not audible. How much is announced?
Randeep Narang:
INR 30,000 odd crores is announced. Pipelines, some are under opening, some are under to be
bid. So, that's the likely status. But this is again anticipated answer.
Pritesh Chheda:
Is it fair to assume that you will have a strong inflow growth in FY26 also?
Randeep Narang:
Yes, that's what I answered in the previous question. With the order capex plan of PowerGrid,
which is itself INR 35,000 crores, we believe that we have a good chance to be at the same level
or better our order intake in India.
Pritesh Chheda:
My last question is, when will your other facility become operational, the expanded conductor
facility?
Randeep Narang:
So, we have already started the work. It will be by end of the financial year it should be in place.
Pritesh Chheda:
Okay. Thank you very much. All the best.
Moderator:
Thank you. We take the next question from the line of Manish Ostwal from Nirmal Bang
Securities Pvt. Ltd. Please go ahead.
Manish Ostwal:
Yes, sir. Thank you for the opportunity. Sir, given the increased geopolitical risk in the
international market, how do you manage the credit risk in the project? Can you point out some
of the qualitative aspects of managing the risk in the international market so that we do not have
a negative effect in terms of disabled's loss or something?
Randeep Narang:
Yes, I think that's a good question and it's important that I elaborate that. So firstly, we work
with multilateral funding agencies globally and we pick and choose our projects through a risk
matrix which we look at through a scorecard, where to go, what to do, and a threshold number
if we don't achieve, we do not go ahead. So basically, five out of ten jobs, we would, you know,
refrain from bidding.
Once we understand, we send our teams, we understand the geography, the labor laws, the
subcontractors, the utility, the whole regional geopolitics before we bid. So, we are very careful
in our narrative and each tender is approved by me and my chairman personally. So, we are very
careful when we bid overseas.
Page 6 of 17
Transrail Lighting Limited May 26, 2025
Manish Ostwal:
Okay. And in our overseas business so far, how much total loss we have on account of
receivables so far in the business?
Randeep Narang:
We have had no loss in our company history of receivables in international.
Manish Ostwal:
Okay. And secondly, sir, one data point, can you give the top five geographical breakdown of
our international orders, order book basically?
Randeep Narang:
So, we are working in Cameroon, Kenya, Tanzania, then Mali and Niger. So, these are the top
five projects.
Manish Ostwal:
And the last question, sir, like we are hearing from some of our peers that the project execution
challenges in terms of labor shortage and the land procurement, can you make some quality to
comment on these two challenges for the industry and the transit in particular?
Randeep Narang:
So yes, there is skilled labor, availability which has become, you know, demand and supply
situation based on the infrastructure boom. And we are working on the ground with our teams
very closely with the skilled labor and subcontractors. So, yes, it's a challenge, but obviously, it
is something which we have to work around and we are doing that. And if you see our numbers,
it shows that we are executing well.
Manish Ostwal:
Thank you, sir, and all the very best for the execution for FY26.
Moderator:
The next question comes from the line of Nitin Jain from Fair Value. Please go ahead.
Nitin Jain:
Yes, thanks for the opportunity. And congratulations on the good set of numbers. So, I have just
one question. What will be the concentration of Bangladesh orders in our entire order book? And
what has been the payment history so far? And what is our guidance for this Bangladesh order
book for FY26?
Randeep Narang:
Okay. So, as of December, Bangladesh order book was 20% of our total order book. As of March
25, it became 15%. And as we are executing well as of May, it will be approximately 12%. And
by the year end, it will be 5% to 6% only. And we intend to finish the Bangladesh job by Juneof
26.
Nitin Jain:
Yes, just if you could comment on the payment history so far.
Randeep Narang:
The payments are working on schedule, on time. In the last six months, we got more than $70
million. And we are on schedule. This is a Government Priority project by Government of
Bangladesh. And they are supporting their own progress by supporting our funding. There was
a delay, of course, during the coup period. But then it's stabilized now post December.
Nitin Jain:
Great. Thank you and all the best.
Moderator:
Thank you. The next question comes from the line of Darshil Pandya from Finterest Capital.
Please go ahead.
Darshil Pandya:
Yes, sir. So, my question was with regards to the interest payment that we are doing. It was INR
197 crores as I can see on the full year basis. And our total borrowing stands at around INR 640
Page 7 of 17
crores, INR 650 crores. So, can you please tell me what kind of interest costs are we paying and
what additional this interest payment includes?
Transrail Lighting Limited May 26, 2025
Deepak Khandelwal:
This includes the interest payments on the short-term, long-term borrowing as well as the usage
period of the LC which we have been paying. That is also included in the same. So, it is not just
INR 600 crores. So, it includes the LC which we are having limit of more than INR 1,000 crores.
Darshil Pandya:
So, out of the INR1,000 crores, what kind of LC utilizations are we doing?
Deepak Khandelwal:
It remains almost 90%, 95% utilization.
Darshil Pandya:
And are we doing anything to bring down the interest costs that we have? And as I have seen,
out of INR 800 crores, INR 400 were for the fresh issue. So, only INR 241 crores have we used
for net debt payment?
Deepak Khandelwal:
Yes, presently this is the position. However, we have got our credit rating upgraded to A plus.
And we are expecting further upgradation. And on the basis of the same that assessment of the
limit we expect that our interest cost is going to get reduced.
Darshil Pandya:
So, for this year, sir, what kind of interest we will be paying as against what we have paid for
FY25?
Deepak Khandelwal:
9% roughly. In the CC, it is around 11%.
Darshil Pandya:
So, I am asking what kind of interest expenses we will see for this year?
Randeep Narang:
From 197, you are saying?
Darshil Pandya:
Yes.
Deepak Khandelwal:
Yes, it is going to be in the range of 3.5% to 3.6% of the total turnover.
Darshil Pandya:
Okay, got you. And sir, just one last question. In 2024 somewhere, we had some really best
margins on the EBITDA front. Can we achieve somewhat what we have done probably in 2024?
Randeep Narang:
What happens is that the margins are a mix of different projects, different product margins. And
therefore, it is an amalgamation of all that on an average basis. So, if you see through our RHP
and guidance, we have been talking about 11.99%, 12%. And even in the last call I had
mentioned, 12%, 12.5% would be where we are going. So, we intend to maintain that at 12%,
12.2%, which is again the best in the industry so far.
Darshil Pandya:
Of course. Got you, sir. I will fall back in the queue. Thank you so much for taking the questions.
Moderator:
Thank you. The next question comes from the line of Shaurya Panyani from Arjav Partners.
Please go ahead.
Shaurya Punyani:
Sir, my question was on the capex plan. So, this capex which you are doing, what is the cost of
the overall capex?
Page 8 of 17
Transrail Lighting Limited May 26, 2025
Randeep Narang:
Firstly, we are looking at capex which we got approved in the month of January. We had looked
at INR 326 crores for our expansion of our factories and a new factory and some plant in
equipment. So, that again is on schedule and the work is happening. And we are looking at capex
specific loans and internal accruals to fund this, other than the INR 90 crores we took from the
IPO funding for capex.
Shaurya Punyani:
INR 90 crores from IPO.
Randeep Narang:
Yes, INR 90 crores.
Shaurya Punyani:
And by what time this entire capex will be done and new capacity will kick in?
Randeep Narang:
So, part capacity to the Brownfield project will happen by June-July. And a new factory which
will set up, will happen by December.
Shaurya Punyani:
December 25?
Randeep Narang:
Yes.
Shaurya Punyani:
Okay, sir.
Moderator:
Thank you. The next question comes from the line of Nikhil from Kizuna Wealth. Please go
ahead.
Nikhil:
Yes. Hi sir. Thank you for giving me the opportunity and congratulations on a great set of
numbers. So, my first question is like on the African order book, like we are seeing US President
cutting the funding for African projects, a lot of African projects. So, have you seen any kind of
headwinds in that part, in African region?
Randeep Narang:
So, for us, most of our funding is through World Bank and African Development Bank, which
is an independent body and they are not through MCA, American funding. So, we have not been,
you know, any way troubled with that.
Nikhil:
Okay, sir. That's great to hear. Now, sir, on FY25 on a sequential basis, we have seen rise in our
subcon cost and we have seen a great reduction in the cost of material consumed. So, can you
highlight any pointers on that, like the raw material prices are coming down and how are we
managing that part and are these sustainable numbers?
Randeep Narang:
Yes, firstly, we are sustainable because we work on a very clear project-to-project analysis on
cost to complete. We look at the monthly variances. So, the principal point is when you see the
subcontractor cost going up, we are now in more of a construction execution phase and that's
why the cost has gone up, but it is in line with the budgets of each project.
Nikhil:
Okay, sir. That's great to hear. And, sir, can you just provide an update on HVDC project that
we won and what are the timelines for that and how is the pipeline for HVDC projects?
Randeep Narang:
So, the pipeline is around INR 5,000 crores what we hear and we see the forecast. We already
got one job, that is KPS 2 to Nagpur and we are now starting work there, which we got in the
Page 9 of 17
last quarter. So, we are quite bullish on the HVDC opportunity going forward. We are focused
on transmission line and not substation in HVDC.
Transrail Lighting Limited May 26, 2025
Nikhil:
Sir, that's great to hear. So, what would be like our project timelines for HVDC project? And,
sir, one of the bookkeeping questions, like what is our fund-based and non-fund-based limit and
what is the utilization over there?
Deepak Khandelwal:
Our fund-based limit is around INR 600 crores and non-fund-based limit is around INR 4,800
crores and we have fully tied up almost both the limits. And utilization remains something
between 90% to 95%.
Nikhil:
Okay, sir. And, sir, what are our advances from the projects?
Randeep Narang:
Advances, we get around 10% advance mostly on each of the projects. In India, power grid is
interest-bearing, but internationally these are advances without interest.
Nikhil:
Okay, sir, that's great to hear. And, sir, lastly, what is our timeline for HVDC project, like, what
is going to be the execution phase?
Randeep Narang:
It's 24 months to 30 months depending on the nature of the project and the timeline given in the
contract.
Nikhil:
Okay, sir, that's great to hear. That's it from my side. Congratulations on a great settlement
number and all the best.
Randeep Narang:
Thank you.
Moderator:
Thank you. The next question comes from the line of Mahek Talati from Agility Advisors. Please
go ahead.
Mahek Talati:
Sir, I just wanted to understand, so how much of our current capacity of towers and conductors
is sold in the outside market and how much of it is used for internal consumption?
Randeep Narang:
So if you see most of our conductors and towers today, 96% is used internally for our EPC in
terms of current capacities, but as we expand the capacities this 4%, 5% product sale will go up
and for that we are looking at marketing opportunities and managing the new geographies.
Mahek Talati:
Okay and is it so 95% is used for internal consumption, so is it catering to the entire demand or
we are purchasing something from the outside market as well?
Randeep Narang:
We are looking at our internal demand with the order book we have of around INR 14,500 crores.
We are therefore expanding our factories as you heard. The first phase of capex for towers is
being implemented by June and by December and we will be quite self-sufficient when we have
this factories in place.
Mahek Talati:
And sir in terms of how much of our order book is currently catering to the substation portion?
Randeep Narang:
Substation is small. We would be out of INR 14,500, would be around INR 1,000 crores.
Page 10 of 17
Transrail Lighting Limited May 26, 2025
Mahek Talati:
Okay, and any plans to increase the substation opportunity because that is also a large part of the
T&D
Randeep Narang:
We have a separate substation strategy and we are bidding jobs internationally. Even recently
we got two jobs internationally worth around INR 750 odd crores. So we are aggressively
looking at opportunities, but again as I mentioned in the beginning, our focus is on the margin
led opportunity where execution and the client is keen to finish the job on time. So we are very
focused on pick and choose where we want to go.
Mahek Talati:
Okay, thank you. And sir one questions was, so our payable days are quite high at around 200
plus days. So any specific reason why we are getting such extended payment terms or which is
normalized?
Randeep Narang:
Can you repeat the question please?
Mahek Talati:
So it was related to the payable days. Our payable days are quite high at around 200 plus days.
So is there any specific reason behind such extended payment terms?
Deepak Khandelwal:
We are not getting you properly. Would you please repeat it again?
Mahek Talati:
Sir, my question….(disconnection)
Moderator:
Mahek has left the question queue. We will move on to the next question from the line of Mehul
Mehta from Choice Equity Broking. Please go ahead.
Mehul Mehta:
Good afternoon team. Thanks for the opportunity and congrats on great set of numbers. My
question is on capex planned of about INR 325 crores, we will be reaching 1,96,000 metric tons
of towers and conductors of 49,500 kilometers. Is that correct understanding?
Randeep Narang:
I will give you a better picture. I think that's a better way to handle. So with INR 326 crores what
we had planned, we will reach 1,73,000 metric tons of towers and 40,800 kilometers of
conductors. Now we have in the last board meeting, we have got further capex approved in
principle and which we will utilize in the next 15-18 months which will then take us to 196,000
metric tons and 49,500 circuit kilometers. So therefore there are phase 1 and phase 2 which both
are focused going forward.
Mehul Mehta:
So in this there will be additional capex over and above INR 325 crores?
Randeep Narang:
INR 50 odd crores more we are planning to add, so that within the existing brownfield projects
so as to go to this capacity I mentioned.
Mehul Mehta:
And this will be over 15-18 months completed, so maybe mid FY '27, is that correct?
Randeep Narang:
Yes, it's going to be around 15 months what we are looking at and this is basically we are looking
at conductor and there is an increased requirement of AL-59 category of conductors which we
are looking at expanding.
Mehul Mehta:
All right, thank you. I am done.
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Transrail Lighting Limited May 26, 2025
Randeep Narang:
Thank you.
Moderator:
Thank you. The next question comes from the line of Naman Parmar from Niveshaay
Investments. Please go ahead.
Naman Parmar:
Good afternoon, sir. Congratulations on a great set of numbers. Mostly my major question has
been answered. Just wanted to know how much would be the domestic and international
percentage for the future you will be accepting?
Randeep Narang:
So 65% actually is you know including some of our other businesses, 8%, civil, poles and
railways. Our T&D business is 50-50 almost international and domestic. Internationally we only
do T&D. So therefore our going forward international domestic will be almost same.
Naman Parmar:
Okay, 50-50 only. And secondly on the substation EPC side, so currently you are facing any
equipment shortages, like a shortage in the transformer side, control panel or switchgear?
Randeep Narang:
We are actually doing substation which I mentioned earlier is mostly international and therefore
we have opportunity to source globally. So we don't have any problems on transformers and
whatever was needed has been already procured.
Naman Parmar:
Okay, mostly it is for international only.
Randeep Narang:
Yes.
Naman Parmar:
And lastly on the working capital days, so currently you have ended the year with 90 days
working capital. So in future also you expect that the working capital is to stay 90 days only?
Deepak Khandelwal:
Sir, actually it is with including the IPO fund which is parked in the bank. So if we exclude the
IPO fund we remain at 74 days of the working capital. It is almost in the similar line of the last
year and we expect it to be remain within 75-85 working days in the next year, which is as per
close to the industry norms.
Naman Parmar:
Okay, understood. Thank you so much for answering all this.
Randeep Narang:
Thank you.
Moderator:
Thank you. The next question comes from the line of Parimal Mithani from Credential
Investment. Please go ahead.
Parimal Mithani:
Sir, congratulations on good set of numbers and thanks for the opportunity. So I just wanted to
know in terms of an international order, you mentioned that most of your funding comes to
World Bank and African Development Bank. So how does this funding basically secured from
the bank side, how does it work? Can you just elaborate that, sir? Because of the geopolitical
situation, you know, lot of world fundings are getting restricted. So just I wanted to know that.
Randeep Narang:
Okay. So the way the global funding works, let's say African countries, they tie up on each
contract with the global funding agency and this whole process takes 1-2 years. Once the tie up
happens, they then issue the tender for global bidding and then we participate. So when we
participate, the funding is already tied up even for ROW and whatever is the nature of the project.
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Transrail Lighting Limited May 26, 2025
And then global bids are announced. And when we bid and if we win, we are very secure in
terms of the funding and then therefore you get the advance also at the time once you sign the
contract.
Parimal Mithani:
Okay. And sir, till date there has not been a history that your funding has been stopped or you
have got a payment not come on time, right?
Randeep Narang:
Yes, payments come on time. There could be a month or two delay if there is a ROW or there is
some unnatural happening. But for multilateral funding agencies, we have not had any problem.
Parimal Mithani:
Because you operate in regions like Africa where there is lot of political turmoil, does it affect
funding till date?
Randeep Narang:
When we bid, we look at the political scenario, we look at the execution area, we look at the
geography, we look at the utility, we look at the consultants, all that. So we really have seen
delays happening if there is unnatural event happening, like a coup or something which may
delay the project for a couple of months. But funding-wise, we have been pretty secure.
Parimal Mithani:
Okay, sir, thank you and all the best.
Randeep Narang:
Thank you.
Moderator:
The next question comes from the line of Jay Trivedi from Incred AMC. Please go ahead.
Jay Trivedi:
Yes, firstly congratulations sir on good set of numbers. My one question is how do we look at
the subcontracting expenses? In FY '25, if I compare with FY '24, it has significantly gone up.
So can you brief something on that?
Randeep Narang:
Yes, so it's the nature of the project and when you are looking at higher degree of execution
based on the timelines. So initially when the project starts up, you see the engineering, design,
approval, the supplies happening. So it's a mix of project which happened in '24 and '25.
FY25 has been a year where we had to do huge amount of construction and delivery in terms of
on the ground and therefore the subcontractor expenses have gone up. But this is in line with the
budget of the project and this is every month we look at variation analysis and we know that it
is in line with the budget and all homework happens on this.
Jay Trivedi:
Yes sir, despite increase in the subcontracting expense, our margins have also gone up. So just
wanted to understand how does this work like going forward also.
Randeep Narang:
The margin profile is the nature of the complete project, nature of the complete project. So it's a
combination of material and it's construction cost. It's also subcontracting expenses, employee
cost, finance cost. So the margin profile depends on how better we execute on the ground in
terms of our subcontracting cost. We look at how we can negotiate better our supply chain
management.
So the margin profile goes up on the overall project and that's what we are doing. Despite having
huge construction focus, our margin profile we are maintaining and bettering.
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Transrail Lighting Limited May 26, 2025
Jay Trivedi:
So sir, just to summarize, is my understanding correct that Transrail is in a very good position
to get good orders from the clients, which the subcontracting parties are not able to get it? So
they are ready to work with us for a lower margin and higher credit days also. Is my
understanding correct?
Randeep Narang:
I will differentiate this a little bit. We deal directly with the utilities and we take jobs. So our
subcontractors whom we hire know and trust us to work with us and these are all pre-decided
before we bid. So there is an understanding and the margin profile is similar because we already
have an understanding prior to bidding. And therefore that's the good part about us that we know
the manner in execution of the job and we know what kind of margin will happen by the end of
the project.
Jay Trivedi:
Okay, sure sir. Those were my questions. Thanks a lot and all the best.
Randeep Narang:
Okay, thank you.
Moderator:
Thank you. The next question comes from the line of Parimal Mithani from Credential
Investments. Please go ahead.
Parimal Mithani:
Sir, Is there any dividend stated policy by the company and the percentage of profit what will be
paid out by the management?
Randeep Narang:
So the dividend policy is there and depending on the manner in which we look at our profits, the
dividend policy guidelines approved by the board will be deciding on the dividend.
Parimal Mithani:
So in -- the percentage of profit, what is the policy being done out?
Randeep Narang:
So this is the first year and we are going to finalize this.
Parimal Mithani:
Okay.
Randeep Narang:
The group we are looking at how much to reinvest and how much to look at dividend.
Parimal Mithani:
Okay, sir. Thank you.
Randeep Narang:
Thank you.
Moderator:
The next question comes from the line of Prince Choudhary from Pinc Wealth. Please go ahead.
Prince Choudhary:
Sir, I want to understand usually what percentage of our order book goes to subcontractors?
Randeep Narang:
Oh, the subcontractor order book, see construction is 30% of a normal EPC job. And out of this,
we are looking at least 15%-20% going to subcontractors for work.
Prince Choudhary:
Okay, sir. Thank you.
Moderator:
Thank you. The next question comes from the line of Viral Shah from Ambit Wealth Private
Limited. Please go ahead. Viral, if you can please unmute your line and ask your question.
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Transrail Lighting Limited May 26, 2025
Viral Shah:
What is the exposure of our Bangladesh order book as of now? And what is the strategy going
forward? Would we be bidding for more projects there or we will restrain from bidding any of
the new projects going forward there?
Randeep Narang:
So, as I had mentioned in the call and I hope you had heard that, our order book was 20% in
December. The un-executed order book in Bangladesh which came down to 15% in March and
now it's 12% in May as we forecast. So, the work is happening as per plan. We don't intend to
bid orders in Bangladesh as of now. And what we see is that our exposure, net exposure on INR
300 odd crores.
Viral Shah:
Yes, I got it. So, that's it from my end. Thank you so much.
Moderator:
Thank you. The next question comes from the line of Sahil Patani from Strokes Capital. Please
go ahead.
Sahil Patani:
Hi, thanks for the opportunity. Most of my questions have been answered. I just want to know,
what is our current order made pipeline? And historically, what has been our conversion rate of
the pipeline?
Randeep Narang:
So, the pipeline as I mentioned in the call will be around INR1 lakh-odd crores, India and
international. And we are looking at 8%, 10% win ratio as we go along.
Sahil Patani:
Got it. And is this the next 3 years or next 5 years? What are the timings?
Randeep Narang:
So, the current order book gives us a clear 2 years visibility, 2.5 years on revenue. And whatever
we book this year will help us to further strengthen that. So, whatever book we order, we will
take 18, 24 months from this year to execute.
Sahil Patani:
Got it. Okay. Thank you so much, sir. All the best.
Randeep Narang:
Thank you.
Moderator:
Thank you. The next question comes from the line of Deepam Gala, an Investor. Please go ahead.
Deepam Gala:
Yes. So, my question was that what is the incremental revenue expected from the capex?
Randeep Narang:
Okay. So, the incremental revenue, If you see the capex expansion, this has been planned in line
with the current order book. And we already are giving a guidance of 23%, 25% revenue growth.
To meet these needs as we go along, we need this capex to support the towers and conductors
for our in-house execution.
Deepam Gala:
Okay. That's it from my side. Thank you.
Moderator:
Thank you. We take the next question from the line of Amit Kumar, an Investor. Please go
ahead.
Amit Kumar:
Sir, we have existing capacity of 84,000 MT per annum and conductor 24,000 km per annum.
So, what is the capacity utilization on these currents?
Randeep Narang:
So, currently we are at 95% on towers and 100% on conductors.
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Transrail Lighting Limited May 26, 2025
Amit Kumar:
Okay. And we have revenue of around INR 5300 crores in this financial year. So, could you
please provide the bifurcation in power, T&D, railways, civil, pole and lighting, all the four
sections?
Randeep Narang:
So, predominantly, 92% is T&D, 4% is civil, 2% is railways and 1% is poles.
Amit Kumar:
Okay. Thank you.
Moderator:
Thank you. The next question comes from the line of Arjun Agarwal, an Investor. Please go
ahead.
Arjun Agarwal:
Yes. Congratulations on a great set of results. I want to know one thing. Based on the tower
testing facility that we have, do we have any constraints regarding the maximum voltage rating
that we can cater to?
Randeep Narang:
We can go up to 1200 kV in our tower testing. And we are self-sufficient. We work on three
shifts, including working at night. So, we are well established to cater for all our requirements
internally. And we also look at some odd jobs for our external clients.
Arjun Agarwal:
Okay. Thank you. Thank you for this answer. Sir, I want to take your view actually regarding
this National Electricity Plant transmission that CA has envisioned for 2032. So, what kind of
guidance can we expect from this particular plant, the total addressable market?
Randeep Narang:
So, the addressable market in India and the infrastructure in T&D is going to go up. At the solar
opportunity of generation and looking at the strengthening of the various lines and various grid
elements. So, we are talking about a INR1 lakh crores opportunity, out of which at least 50,000
to 60,000 will be in India. And this will double hopefully the following year. So, one can't predict
beyond two years, but we see a good traction for infrastructure in T&D in India.
Arjun Agarwal:
Thank you for this answer. Sir, my last question will be regarding that are we emphasizing more
on the monopoles and other HVDC equipment, which we can supply, the transmission towers
and monopoles pertaining to HVDC?
Randeep Narang:
So, we are looking at transmission opportunities in HVDC, which is a complete EPC job, which
includes supply of towers and conductors. So, therefore, we are well-placed because of the
integrated back-up plan of the company itself. So, we are well-poised to support the HVDC
growth in India.
Arjun Agarwal:
Okay. Thank you for the detail and all the best for future.
Moderator:
Thank you. We take the next question from the line of Nitin Jain from Fair Value. Please go
ahead.
Nitin Jain:
Yes. Thank you for the follow-up opportunity. So, my question is on working capital days. So,
in the presentation, you have mentioned that excluding the IPO funds, the working capital days
are around 74, which is in line with last year's number. But if I compare that to FY '22 and '23,
Page 16 of 17
the number is higher by about 10 days. So, any reason like has there been any change in the
business model or in the industry?
Transrail Lighting Limited May 26, 2025
Randeep Narang:
So, the improvement in working capital days is a sincere focused effort to see how fast we can,
look at our billing to collection cycle. And that's what we are looking at improving further. It's
a constant progress of seeing how fast we can get our money. And we see that our clients also
are keen to expedite progress and pay us on time.
Nitin Jain:
My point is the working capital days have increased compared to '22 and '23.
Randeep Narang:
That is obviously because you have many more projects happening. The scaling is up. So, the
timelines, it all depends on the kind of job you have. It's a dependency-based job. Also on the
Terms of payment. It depends on a very much mix of this. So, what we did 2 years ago is maybe
not sacrosanct today. And today what we are doing is aligned with industry norms.
Nitin Jain:
Okay. Thank you.
Moderator:
Thank you. Ladies and gentlemen, with that we conclude the question and answer session. I now
hand the conference over to Mr. Randeep Narang, Managing Director and CEO, for his closing
comments.
Randeep Narang:
So, I thank you all for participating and coming on a rainy monsoon day to listen to our numbers
and our feedback. So, we look forward to meeting you soon in the next quarter. Thank you for
your time.
Moderator:
Thank you. On behalf of Mirae Asset Capital Markets, that concludes this conference. Thank
you for joining us and you may now disconnect your lines.
Disclaimer: This is a transcript and may contain transcription errors. The Company or the sender takes no responsibility for
such errors, although an effort has been made to ensure high level of accuracy.
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