Transrail Lighting Limited

Transrail Lighting Limited (TLL) was erstwhile a part of Gammon India Limited (GIL, rated CARE D). As a part of GIL’s debt restructuring, the T&D business was carved out and transferred to separate company namely TLL. Consequently, as per Business Transfer Agreement (BTA) dated October 27, 2015, and scheme of arrangement approved by National Company Law Tribunal (NCLT) on March 30, 2017, Ajanma Holding Pvt. Ltd. (AHPL), i.e. promoters belonging to Godha Family was

As on September 30, 2017, TLL’s order book position stood at ~Rs.3,550 crore (2.93x FY17 revenues), which is to be executed over 18-24 months. This provides robust revenue visibility over the medium term. Further, geography-wise, the order book comprises 75% domestic and balance as export orders. PGICL constitutes as major client contributing ~17% of the order book. Further, in the export orders, TLL bids selectively for orders funded by multilateral agencies or where

After equity infusion by AHPL and better access to financial resources, TLL’s operational performance witnessed significant improvement with increased order execution while maintaining rigid inventory and controlled debtor management. Consequently, the company’s revenue increased by over 4 times YoY basis to Rs.1,211 crore in FY17 on account of higher order inflows and corresponding timely execution of the same. As a result, TLL’s overall gearing ratio at

As per the BTA and scheme of arrangement, AHPL has agreed to invest total equity capital of Rs.50 crore into TLL for consideration of 75% stake by August 2017. The promoters have invested Rs.2.32 crore as equity capital in FY14. Further, they have brought in Optionally Fully Convertible Debentures (OFCDs) totaling Rs. 47.70 crore in FY17 and converted the same into equity by October 26, 2017. Consequently, the overall gearing ratio has improved from 4.91x at the end of FY17

Though the T&D EPC companies have healthy order book, the competition in this segment remains at elevated levels. Hence, margin protection and appropriate bidding for orders remain critical aspects for the T&D EPC companies. As a result, timely execution of orders and appropriate hedging/procurement planning of key raw materials (such as Steel, aluminum and zinc) remain key monitorables for these companies to maintain operating margins and generate

Criteria on assigning Outlook to Credit Ratings CARE’s Policy on Default Recognition Financial ratios – Non-Financial Sector Rating Methodology-Manufacturing Companies About the Company Transrail Lighting Ltd. (TLL) was incorporated on February 18, 2008. The company provides solutions for Power Transmission and Distribution business as well as High Mast lighting solutions from design, testing, fabrication, supply of