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Transformers & Rectifiers expects 10% revenue growth in FY20

Updated : September 12, 2019 02:30 PM IST

India's leading transformer manufacturing company Transformers & Rectifiers is expecting overall revenue growth of 10 percent in the current fiscal, said Devendra Kumar Gupta, CFO of the company, adding that "the second half will cover up whatever volumes we lost in Q1".

“Last year we clocked a growth of 22 percent in topline and we are expecting better topline in this current year. Initial two quarters are slightly down as compared to the second half of the year," said Gupta in an interview with CNBC-TV18.

On demand from railways and renewable space, Gupta said, “Order size, as well as demand, is growing in almost 20-30 percent range, which is good in terms of one segment for the transformer industry.”

Reports have been pointing to slowdown woes for the electrical equipment industry owing to the end of the mega electrification drive under 'Saubhagya'.

When asked if Saubhagya scheme not giving any fresh orders is true, he replied, “Distribution segment and electricity meters and cable industry might be experiencing that type of pressure but for transformers specifically, in our segment, we are not facing such type of thing.”

In terms of payment situation, Gupta said, “We are not dealing with distribution companies (DISCOMs). We are dealing with transmission corporations of states as well as Power Grid Corporation of India Limited (PGCIL), which is the central utility. These all projects are funded by the World Bank and even Power Finance Corporation (PFC). So we are not facing any payment issues.”
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