Transrail Lighting shares jump 10% on new orders worth ₹574 crore

Shares of Transrail Lighting jumped more than 10% on Wednesday, September 30, after the company secured new orders worth more than ₹574 crore, primarily in its domestic Transmission & Distribution (T&D) business.

According to the company's exchange filing, the latest orders include Engineering, Procurement and Construction (EPC) projects for transmission lines, transmission-line reconductoring projects with supply of High Temperature Low Sag (HTLS) conductors, and supply of poles.

Transrail Lightning said the orders have a major contribution from reconductoring projects using carbon-core HTLS conductors manufactured at its Silvassa plant.

The order wins also include an EPC contract for the construction of a transmission line from a large private-sector Indian developer, according to the company.

Randeep Narang, Managing Director and CEO of Transrail Lighting, said the latest order wins reflect the continued confidence of customers in the company's engineering, manufacturing and execution capabilities.

“I am particularly thrilled for the HTLS reconductoring jobs we have won as it is a testimony to not just our construction excellence but also to our advanced product range,” Narang said.

With the latest wins, Transrail's order intake for the year has risen to ₹1,609 crore. The company also has an additional ₹694 crore worth of orders where it is the L1 bidder.

Narang added, “With a strong order book and a healthy bidding pipeline coupled with increased manufacturing capacities across towers and conductors, we continue to see significant opportunities for sustainable growth for Transrail.”

Transrail Lightning capacity expansion

Transrail said the new orders highlight its capabilities in HTLS conductor manufacturing and stringing, along with the benefit of its recently expanded conductor manufacturing capacity. The company had increased its conductor manufacturing capacity by 70% to 40,800 KMPA.

It has also doubled its tower manufacturing capacity to 172,400 metric tonnes per annum (MTPA) to cater to its growing order book.

The company said it continues to have a healthy bidding pipeline across domestic and international markets, supported by its order book and increased manufacturing capacities.

Transrail Lightning shares react

Following the order wins announcement, shares of the company gained as much as 10.3% to an intraday high of ₹498 on Wednesday and were trading at ₹477.65 as of 3.14 pm, still up 5.8%. With today's gains, the stock has extended its gaining streak to two days. It has, however, declined over 14% so far this year and about 34% in the last 12 months.

Also read: Nifty at 20-year technical crossroads as 200-week moving average comes under pressure