Transrail Lighting shares jump 5% on ₹412 crore order win; intake crosses ₹2,000 crore

Shares of Transrail Lighting Ltd jumped close to 5% in intraday trade on Tuesday, October 6, after the company said it had secured large orders.

The company said it had secured new orders worth ₹412 crore in its core Transmission and Distribution (T&D) business, according to a regulatory filing on Tuesday.

The new orders extend the company's order intake for the current year to ₹2,021 crore, including L1 orders totalling ₹409 crore. An L1 order is a government or institutional contract awarded to the lowest-priced bidder who meets all required technical, quality and eligibility criteria.

The new orders mainly include domestic transmission-line reconductoring projects using HTLS conductors. The additional orders will help Transrail expand into projects that use its in-house manufactured carbon-core HTLS conductors to increase the power-carrying capacity of existing transmission lines.

HTLS (High-Temperature Low-Sag) conductors are transmission wires designed to carry more electricity at higher temperatures while limiting expansion and sag. They are used to increase the capacity of existing transmission lines and improve grid reliability.

The company holds a manufacturing capacity of 184,400 MTPA for towers and 40,800 KMPA for conductors, positioning it to benefit from growing demand in the domestic and international transmission and distribution sector, the filing said.

The government's approval of Phase III of the Green Energy Corridor would strengthen India's power infrastructure and support the evacuation of 900 GW of non-fossil fuel-based power, said Randeep Narang, managing director and chief executive officer of the company.

Rising sector demand and higher tower and conductor manufacturing capacity would support the company's growth, he said.

Second order win in less than a week

This marks the second large order win disclosed by the company in less than a week. In a separate exchange filing dated September 30, Transrail Lighting had said it secured new orders worth more than ₹574 crore, primarily in its domestic T&D business, a disclosure that had sent its shares up over 10% that day.

The company said the orders had a major contribution from reconductoring projects using carbon-core HTLS conductors manufactured at its Silvassa plant, and also included an EPC contract for a transmission line from a large private-sector Indian developer.

Market reaction to update

Transrail Lighting's shares jumped as much as 4.9% to the day's high of ₹485.50 on Tuesday and were trading at ₹479.80 as of 11.15 am, up 3.7%. The stock has, however, fallen about 14% in the year-to-date period and declined nearly 35% over the trailing 12 months.

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