The power sector has become a darling of the stock market. Fuelled by a booming population, industrial expansion, and scorching summers, the demand for electricity has skyrocketed. Homes and businesses alike are cranking up air conditioners to battle the heat, pushing the national grid to its limits.
Amid this surge in power consumption, a niche within the broader sector has begun to garner significant attention: the power transformer industry. These unsung heroes, often hidden away in substations and distribution centres, play a critical role in ensuring a smooth flow of electricity. Think of them as the invisible conductors of our modern world, silently transforming raw voltage from power plants into levels usable by homes, factories, and everything in between.
As the power transformer industry takes centrestage, Vilas Transcore, a recent addition to the stock market, is poised to be a key contributor to India’s power transformation journey.
About Vilas Transcore
Vilas Transcore manufactures and supplies power distribution and transmission components, primarily to transformer and other power equipment manufacturers in India and abroad.
The company has two manufacturing units: one situated in Ramangamdi, Baroda, covering an area of 2,200 sq. metre, and the second in Vadodara, Gujarat, covering an area of 11,000 sq. metre. It is allowed to source toroidal cores for current transformers (CT) up to 400 KV class for power grid projects.
Vilas Transcore offers a range of essential electrical components, including CRGO Transformer Laminations, CRGO Stacked Assembled Cores, Wound Cores, Toroidal Cores, Yoke Shunts, Tank Shields, and CRGO Slit Coils. These products are crucial for power and distribution transformers, ensuring efficient and reliable electricity transmission and distribution.
Company financials
The company has demonstrated robust financial performance over the financial years 2021 to 2023, achieving a compounded annual growth rate (CAGR) of 45.9% in revenue, driven by continuous demand growth.
Net profit has grown at a CAGR of 96.3% during this period. This growth has been accompanied by an increase in net profit margins, which rose from 3.9% to 7.2%.
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What’s next?
Vilas Transcore is focusing on high-growth verticals and sectors in India and abroad. With a strong emphasis on quality and customer satisfaction, the company has built enduring relationships by consistently delivering products that meet stringent standards and specifications.
Looking ahead, Vilas Transcore aims to expand its customer base and advance its capabilities in process innovation, product development, and value engineering solutions. This strategic direction is designed to cater to a wider range of customer requirements, thereby diversifying its customer and product portfolio.
To achieve these objectives, Vilas Transcore is enhancing its in-house capabilities in value engineering, testing, and design through ongoing investments in human resources and technical development. The company is collaborating with key customers to enhance and customize its offerings. This approach will not only sustain but also strengthen Vilas Transcore’s market share in the transformer component market.
Conclusion
The Indian government has rolled out several initiatives to bolster growth of the domestic electronics manufacturing sector. Factors such as government efforts to upgrade grid infrastructure, integrate advanced technologies, and facilitate new inter-state transmission system (ISTS) and HDVC projects are driving this surge in demand. Moreover, international orders, increased global infrastructure spending, the adoption of renewable energy, and strategies like the “China plus one” approach and supplier consolidation are further contributing to the sector’s promising outlook.
These dynamics collectively present a fertile landscape for Vilas Transcore to capitalize on burgeoning opportunities within the power transformer industry.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
