Shares of Transformers and Rectifiers (India) Ltd declined sharply in trade on Thursday, sliding nearly 12%, despite the company reporting a healthy set
of earnings for the December quarter.
As of 3:20 pm, the stock was trading 11.5% lower at ₹284.25 on the NSE.
For Q3, the company posted a 34.5% year-on-year rise in net profit at ₹74 crore, compared with ₹35 crore in the same period last year. Revenue grew 32% year-on-year to ₹737 crore, up from ₹559 crore, reflecting healthy execution and demand momentum.
Operating performance also improved, with EBITDA rising 49% year-on-year to ₹125 crore, compared with ₹84 crore a year earlier. EBITDA margins expanded to 17%, from 15% in the corresponding quarter last year, indicating better operating leverage.
However, investor sentiment appeared to be weighed down by a top management change. The company announced that Mukul Srivastava has resigned as Chief Executive Officer, effective January 7. The board has appointed Satyen J Mamtora as Managing Director and Chief Executive Officer.
Transformers and Rectifiers is engaged in the manufacture of transformers and related equipment, catering primarily to the power transmission and distribution sector.
