Transformers And Rectifiers (India) Limited CC-Apr26.pdf · 2026-04-21
So I had a question on margins. You alluded to the fact that I think 15%, 16% is a good number to look at currently. Structurally, I just wanted to understand that most of our peers, in spite of being in low kV class are doing superior ma rgins to us and also that t hey are not backward integrated? So what is the reason for our margins to be at 15%, 16%, where majority of the peers are 18%, 19% and even 20% to some extent. So that was the understanding which I wanted. And also at a time when the transformer industry is at an explosive growth, shouldn't we be getting better margins and faster growth?
No, no, I understand what you are trying to say, but the peers also don't have backward integration. That is one. And secondly, what I'm trying to highlight is that peers are in relatively lower margin, lower kV class, while you are predominantly into 220 kV and above. So 220 kV and 400 kV is what you are targeting, while if I look at majority of our peers, they are getting to 220 kV or 400 kV? In fact, if you look at say Atlanta, it recently got into 400 kV Voltamp and others are getting there. So ideally, our margin structurally should be much higher than them. And I'm assuming even their backward integration, leaving aside, say Atlanta, their backward integration is the same as us. So I don't know why our margins are at only 15% structurally?