Wealth Creator
Voltamp Transformers, a top transformer manufacturing company in India, has become a major wealth creator. The company’s stock has been on a steady rise, climbing from ₹2,518 in February 2023 to ₹11,970 now, marking a nearly 375% increase.
In the past 16 months, the stock has risen 14 times, with the highest monthly gain of 23.4% in January 2024 and 18.7% in December 2023.
For long-term investors, the stock has gained 923% in three years and 1079% in five years. Over the last 11 years, the stock has delivered a return of 2918%, turning a ₹1 lakh investment into over ₹30 lakh.
Voltamp Transformers designs, manufactures, and supplies various types of transformers, including power transformers, distribution transformers, and dry-type transformers. Their products are used in power generation, transmission, distribution, and industries like steel, cement, petrochemicals, railways, and infrastructure.
Stellar Performance in Q4
In the recent quarter ending in March (Q4FY24), Voltamp Transformers reported its highest-ever revenue, EBITDA, and PAT. Revenue from operations increased to ₹508 crore from ₹440 crore in Q4 FY23, while PAT rose to ₹94 crore, up 22% year-on-year.
For the full fiscal year (FY24), the company reported revenue of ₹1,616 crore, a 16.7% year-on-year increase, and a profit after tax of ₹200 crore, up 53% year-on-year. Following this strong financial performance, the company proposed a dividend of ₹90 per share, the highest in its history.
The company’s order book at the end of March 31, 2024, was ₹1,859 crore, a 33% increase from FY23. Voltamp Transformers aims to fully utilize its manufacturing capacity to ensure healthy growth in sales and service revenue.
The company also stated it will only pursue profitable growth opportunities to maintain a healthy balance sheet.
Promising Outlook
India’s power sector is rapidly evolving as the country faces growing power demand and a commitment to a sustainable future. The outlook for the power sector in India is positive and transformative in the near to medium term.
The shift towards renewable energy and capacity addition presents opportunities for companies like Voltamp Transformers. India’s power sector is expected to grow sustainably, playing a key role in the country’s future development.
According to the International Energy Agency, India is projected to add electricity demand equivalent to the current consumption of the United Kingdom over the next three years, highlighting the substantial growth expected in the energy sector.
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