Transrail Lighting Ltd
About the Company
Established in 2008, Transrail Lighting Limited is an engineering and construction firm specializing in power transmission and distribution, along with the manufacturing of lattice structures, conductors, and monopoles. The company offers end-to-end solutions in the power transmission and distribution sector, overseeing projects from initiation to completion. With a presence in 58 countries, including Bangladesh, Kenya, Tanzania, and Nigeria, Transrail has achieved significant milestones. As of June 30, 2024, the company has successfully executed EPC (Engineering, Procurement, and Construction) for 34,654 circuit kilometers (ckm) of transmission lines and 30,000 ckm of distribution lines across domestic and international markets. Beyond power transmission and distribution, Transrail also operates in civil construction, poles and lighting, and railway infrastructure.
Management 1. Mr. Digambar Chunnilal Bagde (Executive Chairman)
Mr. Digambar Chunnilal Bagde, the Executive Chairman of Transrail Lighting Limited, holds a Bachelor of Science degree in Civil Engineering from the Maharaja Sayajirao University of Baroda and brings over 40 years of extensive experience in the EPC industry. Previously, he served as the Deputy Managing Director - Transmission and Distribution at Gammon India Limited and was the promoter of Transrail Engineering Company Limited and Associated Transrail Structures Limited. His leadership and expertise have been instrumental in driving innovation and growth in the infrastructure sector.
2. Mr. Randeep Narang (Managing Director & CEO)
Mr. Randeep Narang holds a Bachelor’s degree in Commerce from the University of Delhi and a Postgraduate Diploma in Marketing from the Institute of Marketing Management, New Delhi. He has also completed the Goodyear Advanced Management Skills Program – Asia, facilitated by the Mahler Company, Inc. With over 35 years of experience across various industries, particularly in the Transmission & Distribution (T&D) sector, he has held key leadership positions. He served as Chief Operating Officer (West) at Bharti Airtel Limited, MD and CEO at CEAT Kelani Holdings in Sri Lanka, and most recently as President-International (T&D, Solar) & Cables at KEC International Limited.
Business Overview
Business Verticals: EPC of Transmission & Distribution Lines:
Transrail Lighting Limited's power transmission and distribution portfolio encompasses a wide array of services, including designing, manufacturing, testing, installing, and supplying galvanized steel structures for power transmission and distribution. Acting as both an EPC service provider and a supplier of engineered products, the company also delivers EPC solutions for air-insulated and gas-insulated substations, ensuring comprehensive support for the sector.
Civil Construction:
The company provides EPC services for civil infrastructure projects, including designing and constructing bridges, tunnels, elevated roads, and other large-scale infrastructure. Among their notable projects is the Kosi Bridge, one of the largest civil construction endeavors they are currently executing in India. The civil construction services are focused primarily on the domestic market.
Poles & Lighting:
Transrail manufactures a diverse range of products, including:
- High masts
- Street poles
- Stadium lighting
- Road gantries
- Signage
- Flag masts
- Solar streetlights
The company manages supply, installation, testing, and commissioning for poles and lighting, serving predominantly the Indian market while undertaking select international projects. The company’s products have been utilized in numerous landmark projects across India and exported to several countries. Notable examples include the Mumbai Trans Harbour Link, M. Chinnaswamy Cricket Stadium in Bengaluru, Samruddhi Highway, LED traffic lights in Mumbai, sports and decorative lighting projects in Qatar, and the Lusaka City de-congestion project in Zambia. Recently, the company expanded its operations by establishing a dedicated facility for signage production.
Railways:
The railway division specializes in:
- Overhead electrification
- Signaling and telecommunication systems
- Earthwork
- Track linking
- Related infrastructure development
These services cater exclusively to Indian government entities and corporations under the Ministry of Railways, supporting critical railway infrastructure projects.
Production Facilities:
Company has 4 manufacturing units in Deoli (Maharashtra), Vadodara and Silvassa (Gujarat) for manufacturing towers, conductors and poles.
These facilities produce towers, conductors, and poles with the following capacities:
- Towers: Approximately 1.01 lakh TPA (tons per annum).
- Conductors: Around 60,000 TPA.
Raw Materials: The company predominantly uses the following materials:
- Steel angles, steel coils, and steel wires
- Zinc and aluminum ingots As of March 31, 2024, 91% of raw materials were procured domestically, while machinery was sourced from Italy and the United Kingdom.
EPC Contracts
Design, Build, and Lumpsum Contracts
- Fixed-price contracts where the client provides conceptual designs and project requirements.
- The company ensures execution as per technical specifications at the quoted price. Item Rate Contracts
- Payment is based on actual work completed, as per a client-provided schedule and design.
- Escalation clauses account for material price changes, minimizing financial risk.
Customer Base:
The company's order book includes a diverse mix of international and domestic projects, with a strong client base comprising government authorities from countries such as India, Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Philippines, Suriname, and Nicaragua. Internationally, major clients include the Power Grid Company of Bangladesh and Da Afghanistan Breshna Sherkat in Asia, as well as Kenya Power and Lighting Company, West African Power Pool, and Electricidade De Mocambique in Africa. Notably, the company has completed over 200 projects worldwide in the power transmission and distribution sector during the three-month period ending June 30, 2024, and the fiscal years ending March 31, 2024, 2023, and 2022.
Milestone Projects:
Financial Report
Share Capital & Number of Employees
Share price and Volume (last 1 year):
Month and Year | December-2024 | January-2025 |
|---|---|---|
| Volume | 137000000 | 26000000 |
Prev Close
N/A
Sector
Infrastructure Developers & Operators
Market Cap
₹7563 Cr.
TTM PE
N/A
Sectoral PE Range
N/A
PE Remark
N/A
BSE
N/A
COMPANY TYPE | EVERGREEN |
|---|
| (IN INR CR) |
|---|
| (IN INR CR) |
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Key Metrics
Market Cap
₹7,563 Cr.
Current Price
₹563
PE Ratio
32.8
D/E Ratio
0.55
ROCE%
35%
CWIP
₹7.53 Cr.
ROIC%
23.4%
Cash Conversion Cycle
-121 day
ROE%
24.1%
PEG Ratio
N/A
Business Segment
EPC for Power Transmission
Transrail Lighting Limited's power transmission and distribution portfolio encompasses a wide array of services, including designing, manufacturing, testing, installing, and supplying galvanized steel structures for power transmission and distribution. Acting as both an EPC service provider and a supplier of engineered products, the company also delivers EPC solutions for air-insulated and gas-insulated substations, ensuring comprehensive support for the sector.
Poles and Lighting
Manufacturing and installation of high-mast, street lighting, and industrial lighting systems, including LED solutions.
Railways and Urban Infra
Infrastructure solutions for railways, including electrification, signaling, and urban infrastructure projects like smart cities.
Key Highlights & Management Guidance
Revenue Breakup for FY24:
- Sale of Products/Services: 5%
- EPC Contracts: 95%
Geographical Revenue Split for FY24:
- Exports: 59%
- Domestic: 41%
Customer-wise Revenue Split for FY24:
- Government: 83%
- Non-Government: 17%
Strong Order Book:
The company has a strong and diversified order book of ₹11,499.29 Cr, with an additional L1 of ₹4,144 Cr. As of December 2024, the unexecuted order book was ₹11,499 cr, and the order inflow was ₹4,715 Cr.
Recent Achievements:
- Solar EPC Order: Transrail secured its first Solar EPC order in the international market for an 80MW DC ground-mounted Solar PV Project in Q3FY25.
- EPC Contract in Nepal: The company received an EPC contract for a 400kV DC Transmission Line in Nepal.
- Orders for India’s First Bullet Train: Transrail received orders for the supply of Railway Mast and Metal Fencing for India’s first bullet train project. The order is worth INR 93 crore.
- Commissioning of Cooling Towers: They successfully commissioned one of the highest Natural Draft Cooling Towers (NDCT) in India (199 meters at Yadadri, Telangana).
- Substation Commissioning: Transrail successfully commissioned 400kV AIS Bay Extension and 220kV GIS Bays at PGCIL Banka Substation.
Order for 800kV HVDC KPS2 Nagpur Transmission Line: The company was awarded one package as part of this project. Expansion and Capex Plans:
Transrail Lighting Limited has planned a ₹327 crore capital expenditure (capex) over the next 18 to 24 months to expand its manufacturing capabilities and drive business growth. The company's board has given initial approval for this investment, which will be used to scale up various operations.
A major part of this investment, ₹125 crore, will go toward expanding existing manufacturing facilities. Additionally, ₹90 crore from the IPO proceeds has already been set aside for these upgrades. The goal is to increase production capacity for conductors, poles, and towers, which are essential for the company’s engineering, procurement, and construction (EPC) business.
To further boost its operations, Transrail is setting up a new tower manufacturing plant, with an investment of ₹120 crore. This facility will help meet the rising demand for transmission infrastructure. Another ₹80 crore will be spent on tools, plants, and project execution equipment, ensuring smooth and efficient operations.
The brownfield expansion is expected to be completed within six months, while the new tower manufacturing plant should be operational within 12 to 18 months. With this expansion, Transrail is gearing up to execute its strong order book and take advantage of growth opportunities in power transmission, civil construction, and railway electrification.
Future Guidance:
Revenue Growth:
- The company anticipates a 30% revenue growth for the financial year ending March 2025 (FY25). Last year's revenue was ₹4,100 crore.
- For FY26, the company is targeting an additional 25% growth on the numbers projected for FY25.
Order Book:
- The company is expecting another ₹3,000 crore getting converted out of ₹4,144 crore
Industrial Outlook
Engineering sector is highly promising, driven by rapid technological advancements, infrastructure development, and increased investment in automation and innovation. Key trends include the growing demand for smart manufacturing, renewable energy infrastructure, and sustainable solutions in industries such as construction, automotive, aerospace, and energy. The integration of AI, IoT, robotics, and Industry 4.0 technologies is transforming production processes, enhancing efficiency, and reducing costs. Governments worldwide are emphasizing infrastructure modernization and green energy projects, creating additional growth opportunities. However, challenges like supply chain disruptions, skilled labor shortages, and fluctuating raw material prices remain concerns for the sector. Overall, the engineering industry is expected to experience steady growth, supported by rising demand for precision engineering and sustainable development initiatives.
Financial Highlights
| PARTICULARS | Mar'2023 | Mar'2024 |
|---|---|---|
| Sales | ₹3,152 Cr | - |
| Sales | - | ₹4,077 Cr |
| OPM | 12% | 14% |
| Net Profit | ₹108 Cr | ₹233 Cr |
Shareholding Pattern
Dec'2024 | |
|---|---|
| Promoters | 71.12% |
| FIIs | 1.59% |
| DIIs | 18.22% |
| Retailers | 9.05% |
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