Transrail Lighting Ltd. is on track to meet its revenue-growth expectations in the current financial year, driven by strong order intake and focused execution of ongoing projects, according to Chief Executive Officer Randeep Narang.
“We are at the end of quarter four and it has been good for us. As per my earlier guidance, we did (Rs) 4,000-plus crore last year,” he told NDTV Profit in a conversation on Friday. “We will look at a 28–30% growth this year and we are on track for that.”
Narang reaffirmed a stable profitability in the range of 12–12.5%, pointing out that when Transrail went for the initial public offering, it had given a margin guidance of around 12%. “We still maintain that 12–12.5% is something we can sustain and deliver. And whatever orders we pick up… we look at that kind of profile to maintain the future also,” he said.
Emphasising a quality-driven approach, the CEO said the EPC company was selective in taking up new projects and followed a risk matrix to choose the right job based on margin, geography and funding agency. “We’re not in a race to pick any order but to secure high-quality jobs with a clear mandate to complete within two years,” he added.
The top executive revealed that Rs 327 crore had been earmarked for capital expenditure over the next two years. “Work is already underway, focusing on brownfield expansions of our tower and conductor facilities.”
Transrail is also planning a new tower factory within the next 12 months. Given its order book, these expansions are essential to ensure customer satisfaction and timely project completion, according to Narang.
The transmission and distribution segment remains Transrail’s key revenue driver, contributing nearly 90% of the total revenue. The company secured orders worth Rs 4,400 crore in the segment recently — 60% from domestic markets and 40% from international markets.
“Our overall order book is about 55% domestic and 45% international, but the mix is shifting towards more domestic orders due to recent opportunities in India,” Narang explained.
Most of these projects will be completed within two years. Domestic jobs will be a bit faster at around 20 months, while international jobs will take about 24 months, according to the CEO.
“Our international focus remains unchanged, but we see strong domestic infrastructure opportunities with a good margin profile. We are balancing both and ensuring that execution and profitability remain the top priorities,” he added.
Shares of Transrail closed 0.33% higher at Rs 509.15 apiece on the National Stock Exchange on Friday, compared to a 0.69% advance in the benchmark Nifty.
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