Company Financial Rusult In Crore

About The Company

Transrail Lighting Limited is one of India leading EPC companies with more than 40 years of experience in power transmission and distribution. It deals with turnkey solutions; it has its operations in Bangladesh, Kenya, and Nigeria, among other 58 countries.

As of September 30, 2023, it has completed approximately 33,500 circuit kilometers of transmission lines and 30,000 circuit kilometers of distribution lines globally with EPC services in substations up to 765 kV. In FY 2023, its revenue growth was 35.1%, surpassing the industry average.

Apart from power infrastructure, the company is strong in civil construction, poles and lighting, and railway projects, thereby making it a well-established and trusted global player in power solutions.

Transrail Lighting - Strength and Weakness

Strength

1. With over 200 completed projects and extensive experience in transmission lines, substations, and distribution networks, Transrail Lighting Limited demonstrates strong execution capabilities and pre-qualifications in the power sector.
2. The company boasts well-equipped manufacturing units in Gujarat, Maharashtra, and Dadra and Nagar Haveli, producing a wide range of products including towers, conductors, and poles. These facilities support backward integration, reducing dependence on third-party suppliers.
3. The company integrated approach to EPC business includes a team of experienced designers and engineers equipped with leading-edge software. This enables Transrail Lighting Limited to deliver projects efficiently, maintain high safety standards, and capture more value in the EPC value chain.
4. Transrail Lighting Limited is certified in quality management, environmental management, communication security, and occupational health and safety systems. Strict internal and external inspections ensure timely delivery, competitive pricing, and superior product quality, enhancing customer satisfaction and market reputation.

Weakness

1. Transrail Lighting Limited relies heavily on its order book for future revenue projections. However, projects included in the order book, especially those where the company has secured the lowest bid, may face cancellation, modification, or delays beyond its control. This uncertainty could significantly impact the company business, reputation, and financial performance.
2. The company project management and turnkey contracts involve long execution periods, typically 3 to 5 years, which increase the risk of time and cost overruns. Various factors such as price escalation, funding constraints, and adverse weather conditions can lead to unforeseen increases in costs, affecting the company financial condition and future prospects.
3. Transrail Lighting Limited derives a significant portion of its revenue from tenders released by government authorities and public sector undertakings. Any delays or reduction in tenders from these entities could adversely affect the company business and results of operations. Changes in government policies or budget allocations may further impact the company prospects in this regard.