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Hind Rectifiers (Hirect), was founded in 1958, in collaboration with Westinghouse, Brake & Signal, U.K.
Hirect is engaged in developing, designing and manufacturing power electronics and power conversion devices for a wide range of end user industries such as Railways, Power, Telecommunication, IT, Steel, Non Ferrous metals, among others.
The company's main manufacturing facility is at Bhandup, Mumbai while it also has manufacturing facilities at Nashik, Maharashtra and Dehradun, Uttarakhand.
Its product portfolio includes Rectifiers, Transformers, Inverters, Converters, Semi-Conductors, Controllers and power supply system for Electro Static Precipitators.
The growth story of Hirect has been entwined closely with that of the Indian Railways, the latter being among the largest and longest client relationships of Hirect.
Quarter consolidated results
For the quarter, it registered a 28% growth in sales to Rs 68.35 crore.
OPM improved 460 basis points to 14.2% which saw OP go up 135% to Rs 9.68 crore.
Other income fell 55% to Rs 4 lakh and interest cost fell 18% to Rs 1.41 crore.
As depreciation grew 45% to Rs 97 lakh, PBT grew 300% to Rs 7.34 crore. Tax provision jumped 319% to Rs 2.14 crore (tax incidence grew from 27.9% to 29.2%). PAT jumped 293% to Rs 5.20 crore.
FY 2019 results
In FY 2019, it registered a 103% growth in sales to Rs 255.14 crore.
OPM improved 280 basis points to 10.1% which saw OP go up 180% to Rs 25.75 crore.
Other income grew 44% to Rs 62 lakh and interest cost went up 32% to Rs 7.00 crore.
As depreciation grew 18% to Rs 2.72 crore, PBT grew 725% to Rs 16.65crore. Tax provision jumped 591% to Rs 4.86 crore (tax incidence fell from 34.8% to 29.2%). PAT jumped 797% to Rs 11.79 crore.
Management comments
Commenting on the company's performance, Suramya Nevatia, Chief Executive Officer, Hind Rectifiers said, "We are delighted to deliver yet another profitable quarter with strong numbers. Our focus on R&D has increased substantially, thus enabling us to enhance our product offering with cost effective and innovative products. We are in line with our growth estimates and are looking to expand through global strategic partnerships."
Valuation
The stock trades at Rs 131.
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