During Tuesday’s trading session, the shares of one of the leading transformer manufacturing company in Orissa for both Power and Distribution Transformers surged nearly 3 percent to Rs. 122 on BSE, after receiving purchase orders worth Rs. 5.41 crores from Tata Group’s JV firms.
With a market cap of Rs. 109.8 crores, at 02:22 p.m., the shares of Alfa Transformers Limited were trading in the green at Rs. 120, up by nearly 1.2 percent, as compared to its previous closing price of Rs. 118.55.
What’s the news
Alfa Transformers Limited received purchase orders worth a total of nearly Rs. 5.41 crores from TP Northen Odisha Distribution Limited (TPNODL), TP Central Odisha Distribution Limited (TPCODL), and TP Southern Odisha Distribution Limited (TPSODL).
According to the latest regulatory filings with the BSE, the orders involve designing, manufacturing and supplying of 100KVA 11/0.4KV AL, 250KVA 11/0.4KV CU, and 7-11KV 1MVA Line Voltage Transformers.
The order from TPNODL, worth Rs. 2.57 crores, is scheduled for completion within 120 days. Similarly, the Rs. 2.49 crore order from TPCODL must also be executed within 120 days. Further, the order from TPSODL, valued at Rs. 0.35 crores, is to be completed within 3 months from receipt of the order.
The awarding entities – TPNODL and TPSODL – are joint ventures between Tata Power and the Government of Odisha, with Tata Power holding a 51% majority stake in both. TPCODL is another JV, where Tata Power holds 51% equity, and the remaining 49% is owned by the state-run Grid Corporation of Odisha (GRIDCO).
Previous Orders
On 18th December 2024, Alfa Transformers Limited secured a purchase order worth Rs. 1.11 crores from Tata Power Northen Odisha Distribution Limited (TPNODL) for the design, manufacturing and supply of 100KVA 11/0.433kV DTR Transformers from the Bhubaneswar plant.
Financials
Alfa Transformers reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 23.4 percent, rising from Rs. 13.87 crores in Q2 FY24 to Rs. 17.11 crores in Q2 FY25.
In contrast, during the same period, the company’s net profit decreased from Rs. 6.06 crores to Rs. 0.98 crores, representing a decline of around 84 percent YoY.
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Key Financial Ratios
In terms of key financial metrics, Alfa Transformers has a Return on Equity (RoE) of 41.8 percent and a return on capital employed (RoCE) of 11.5 percent. Additionally, the company’s debt-to-equity ratio stands at 0.55.
Stock Performance
The stock has delivered positive returns of nearly 38 percent in one year, as well as around 35 percent returns in the last six months. However, the shares of Alfa Transformers have given negative returns of about 11 percent in the last one month.
About the company
Incorporated in 1982, Alfa Transformers Limited is primarily engaged in the business of manufacturing and repairing of electrical equipment mainly power and distribution transformers.
The company produce Electrical Distribution & Power Transformers ranging from 10KVA, 12KV Class to Transformers of 10 MVA, 36 KV Class.
Written by Shivani Singh
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