Shares of Transformers & Rectifiers Ltd. (TRIL) continued their sharp decline on Tuesday, November 11, hitting a 10% lower circuit, following a 20% drop on Monday. The sell-off came after the company’s quarterly results, released post-market on Friday.
On a consolidated basis, TRIL reported a marginal 0.2% decline in revenue year-on-year to ₹460 crore. Net profit and EBITDA both fell by 25% compared to the same quarter last year. The company’s EBITDA margin contracted to 11.2% from 14.9%, marking its lowest level since Q3 FY24. Management cited higher staff costs and increased operating expenses as the main reasons for the margin contraction.
Adding to concerns, the World Bank has debarred TRIL from participating in its financed projects due to alleged corruption and fraud linked to a $486 million project for Nigeria’s electric grid. Analysts noted that while clarification from the company is awaited, the ban is unlikely to significantly affect its domestic or international operations, as most projects are not World Bank-funded.
TRIL shares are trading at ₹282.55, extending year-to-date losses to nearly 40%.
