Latest news with #FACTS
Mint
15-07-2025
- Business
- Mint
This Quiet Power stock is surging. What does the market know that you don't?
The transmission and distribution (T&D) industry has quietly emerged as one of the hottest infrastructure themes. Within it, high-growth niches like high voltage direct current (HVDC)—which enables long-distance electricity transmission with minimal losses—and flexible alternating current transmission systems (FACTS), designed to enhance grid stability and efficiency, are gaining rapid traction. The domestic market for these segments is expected to grow at an annual rate of 60-65%, expanding from $1.4 billion in 2024 to $9 billion by 2028. Separately, the high-voltage power and power quality market is projected to grow at 18% annually over the same period. Amid this surge in demand for advanced grid infrastructure, companies are scrambling to scale. Among the more compelling success stories is Quality Power, a relatively low-profile but fast-growing player in high-voltage equipment and power quality systems. To fuel its next phase of growth and capture market share in this booming segment, Quality Power launched its ₹859 crore initial public offering (IPO) in February 2025. The stock debuted at ₹432 on 24 February but dropped to ₹274 by 9 April. Since then, it has soared 182% in just three months, closing at ₹773. So, what's driving this rally—and can it sustain? High-voltage play with strong tailwinds Founded 24 years ago, Quality Power manufactures high-voltage electrical equipment and advanced power quality solutions critical for grid connectivity and energy transition. Its products are used in sectors including power, renewables, oil and gas, cement, chemicals, and automobiles. The company also benefits from green energy tailwinds. Its portfolio includes coil products, transformers, capacitor banks, and shunt reactors. With a global footprint across over 100 countries and a client base of more than 210, Quality has grown through both product expansion and acquisitions. Past acquisitions include Endoks, S&S Transformers, EPEC, Nebesky, and, most recently, Mehru. Out of the ₹859 crore raised via IPO, ₹225 crore was earmarked for business expansion— ₹117 crore for the Mehru acquisition, ₹27 crore for machinery purchases, and ₹61 crore for future M&A. Market interest intensified after the company laid out aggressive revenue targets tied to these inorganic efforts and its capacity expansion pipeline. Strong FY25 performance Quality's financials reflect momentum, boosted by industry demand. In FY25, revenue rose 12% year-on-year to ₹337 crore, with power products contributing ₹185 crore (55%) and power quality systems ₹152 crore (45%). The domestic and export mix stood evenly at 50:50. Within power products, coil products, used in HVDC and FACTS, saw significant traction, generating 20-25% margins. As a result, operating margins expanded by 600 basis points to 19% in FY25, up from 13%. Net profit surged 81% to ₹100 crore. This growth was underpinned by rising investment in fixed assets, which grew from ₹34 crore in FY22 to ₹219 crore in FY25. Despite the capital investment, return on capital employed (ROCE) remained strong at 30%, down from 49% in FY22. Return on equity held steady at 26%. The company's balance sheet also reflects financial discipline. Borrowings dropped 77% from ₹38 crore in FY24 to ₹9 crore in FY25. Free cash flow rose from ₹6 crore in FY22 to ₹48 crore in FY25. As of now, the company holds cash reserves of ₹210 crore. Mehru adds scale and reach With a strong balance sheet and momentum in core operations, Quality also made a strategic acquisition to expand product depth and international footprint. In March, Quality acquired a 51% stake in Mehru for ₹120 crore using IPO proceeds. Mehru, a manufacturer of instrument transformers (up to 500 kV), has a strong export presence in Southeast Asia and Africa. The deal expands Quality's portfolio and client base to more than 50 countries and positions it to deliver integrated grid and renewable solutions. In FY25, Mehru posted revenue of ₹256 crore—76% of Quality's consolidated topline. However, since the acquisition closed on 6 March, only ₹18 crore was consolidated into FY25 earnings. As of Q4FY25, Quality's order book stood at ₹750 crore, with Mehru contributing ₹350 crore (47%). The order book is expected to be executed over the next 15 months. Given the full-year consolidation in FY26, Quality expects revenue to double to ₹700-850 crore. However, Mehru's lower PAT margin (12-13%) is expected to drag down consolidated Ebitda margins to 16-18%, from 30% in FY25. FY26 net profit is projected at ₹112-153 crore. The company expects margins to revert to 20% in a few years. Demand is already outpacing supply. Mehru had to forgo orders worth ₹150 crore recently. To meet rising demand, Quality has launched a capacity expansion at Mehru's Bhiwadi facility within a month of acquisition. The expansion includes four new autoclaves and relocating non-critical storage to a warehouse. Capacity will rise 45%, with new capacity online in five months. Order bookings are expected to pick up within six months, with a bid pipeline of ₹400 crore and peak revenue potential of ₹500 crore. Sangli plant to become global coil hub The Sangli unit—Quality's coil manufacturing hub for HVDC and FACTS—operates near full capacity. Notably, Quality is the only Indian firm that manufactures coil products rated at 220 kV and above, a segment with strong demand. These coils currently contribute ₹160 crore to revenue. To capitalise, the company is expanding capacity 9x at Sangli, positioning it among the world's largest coil factories. The new facility is expected to go live in H2FY27 and could deliver peak revenue of ₹1,500 crore. Quality's bid pipeline, including Sangli, stands at ₹1,000 crore, with bookings expected to begin in 6–9 months. Quality is also doubling capacity at its Cochin plant by Q3FY26 to meet HVDC/FACTS demand. A medium-voltage testing lab will be added to enhance quality control and validation. With these expansions, Quality aims to reach peak annual revenue of ₹2,000 crore in four years— ₹500 crore from Mehru alone, assuming no further acquisitions. The workforce is also set to triple in two years, with 1,000 new hires planned soon. Near-term margin pressure is expected due to fixed cost absorption, though the company believes pricing power and demand will offset most of the impact. Valuations rich—but tailwinds strong Quality currently trades at a price-to-earnings (P/E) multiple of 90x—rich by industry standards. By comparison, peers like ABB (65x), Siemens (59x), and Transformers & Rectifiers (71x) trade lower. Only GE Vernova trades higher at 98x. For more such analyses, read Profit Pulse. Despite high valuations, strong demand, expansion visibility, a robust order book, low leverage, and high cash reserves make Quality Power one to watch. The promoters also waived a ₹5 crore dividend payout this year to preserve capital, underscoring their commitment to long-term growth. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Yahoo
11-07-2025
- Business
- Yahoo
Carrier Logistics automates LTL shipment data entry
Carrier Logistics, Inc. (CLI) announced Thursday that data entry fields on its transportation management system can now be automatically populated from a bill of lading. The Elmsford, New York-based SaaS provider said a new AI-powered tool will allow less-than-truckload carriers using its FACTS freight management system to upload shipment data from a BOL. The automated process significantly reduces the time spent and errors created by manual data entry. The tool reduces discrepancies, which often result in reweighing freight and reworking freight bills. 'This technology directly addresses one of the most persistent challenges in our industry — capturing critical shipment data quickly and accurately,' said Ben Wiesen, president of CLI, in a news release. CLI primarily works with asset-based LTL carriers, last-mile operators and cross-dock providers. 'By extracting data in real time, we help carriers act faster and more confidently. The result is a transformative solution that helps LTL carriers using FACTS turn operational efficiency into a strategic advantage,' Wiesen said. More FreightWaves articles by Todd Maiden: ArcBest touts results from EV semi pilot Yellow Corp. selling 4 terminals for $4M Cold storage provider Lineage announces expansion in Canada The post Carrier Logistics automates LTL shipment data entry appeared first on FreightWaves. Sign in to access your portfolio
Business Standard
24-06-2025
- Business
- Business Standard
QPOWER launches state of-the-art Global Coil Factory in Sangli
Quality Power Electrical Equipments announced the launch of its state of-the-art Global Coil Factory in Kupwad MIDC, Sangli. This milestone is consistent with the strategic priorities communicated during the company's Board meeting and quarterly earnings update. The event marks a significant step forward in Quality Power's strategic expansion to meet the growing global demand for high-voltage reactors and coil-based components for HVDC, STATCOM, and FACTS systems. The new facility is envisioned to be one of the world's largest production plants for air-core and oil filled reactors, equipped with 44 advanced winding lines and a world-class high-voltage testing laboratory. As part of the company's commitment to sustainability, the factory is being constructed in line with the Indian Green Building Council (IGBC) Platinum certification, positioning it among the most environmentally responsible manufacturing hubs globally.
Business Upturn
24-06-2025
- Business
- Business Upturn
Quality Power shares jump 4% on launch of Global Coil Factory in Sangli
Shares of Quality Power Electrical Equipments surged 4% after the company announced the launch of its state-of-the-art Global Coil Factory in Kupwad MIDC, Sangli, Maharashtra. This marks a key milestone in the company's growth strategy, as discussed in its recent board meeting and quarterly earnings update. The facility is positioned to become one of the world's largest for air-core and oil-filled reactor manufacturing, catering to growing global demand for HVDC, STATCOM, and FACTS system components. Equipped with 44 high-end winding lines and a world-class high-voltage testing lab, the plant underlines Quality Power's focus on innovation and quality. Aligned with sustainability goals, the factory is being built to meet IGBC Platinum certification standards—making it one of the greenest manufacturing sites globally. Execution of the project is in collaboration with top industry names including Arwade Infrastructure, Kirby Building Systems, and Electromech. In line with its reverse integration plans, the company has already placed orders for advanced cable manufacturing machinery. Shares of Quality Power opened at ₹617.05 and touched an intraday high of ₹638.70, also marking a new 52-week high. The stock saw a low of ₹610.00 during the session. Its 52-week range now stands between ₹267.80 and ₹638.70. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
24-06-2025
- Business
- Time of India
Transmission highways: Powering India's energy transition
India's electricity transmission network is the unsung hero of its green energy transition. Partnering solar parks and wind farms, it is the growing network of transmission lines built to evacuate this green electricity that ensures power flows seamlessly from generation centres to our homes, offices, schools and manufacturing hubs. As India accelerates towards its ambitious target to achieve 500 GW of renewable energy capacity by 2030 and a net-zero carbon footprint target by 2070, the strength, reach, and resilience of its power transmission backbone will determine how effectively the generated power reaches industries, cities, and rural communities alike for a sustainable and resilient energy future. India's transmission network India operates one of the world's largest synchronised power grids. As of March 2024, the country had over 817,000 circuit km of high-voltage transmission lines (220 kV and above), and AC substation capacity exceeding 1,200 GVA. The total inter-regional power transfer capacity has surged to over 116,000 MW from 75,000 MW in 2016-17 which reflects consistent investment and expansion. There has been a 46 per cent increase in per capita electricity consumption from 957 kWh in 2014 to 1,395 kWh in 2024 with a corresponding 84 per cent increase in total power generation capacity from 249 GW to 452.69 GW. With power demand forecasted to reach 4,000 kWh by 2033 there is an urgent requirement to modernize legacy systems and integrate renewable energy sources. The Government of India has finalised the National Electricity Plan (2023 – 2032) for Central and State transmission systems to meet a peak demand of 458 GW by 2032 which. The plan provides for a 32 per cent expansion of transmission network in the country from 4.91 lakh circuit km to 6.48 lakh circuit km. Rapid strengthening of power transmission infrastructure will continue to be critical in achieving our goal of sustainable economic development with power to all. Powering the renewable revolution India's commitment to renewable energy is reflected in the growth of its transmission infrastructure. Non-fossil fuel power capacity surged by 180 per cent from 80 GW in 2014 to 220 GW in 2025. To accommodate this influx, the transmission network has been upgraded with advanced technologies like High-Voltage Direct Current (HVDC) systems and Flexible AC Transmission Systems (FACTS). HVDC corridors have enabled bulk power transfers over long distances with minimal losses. These links transport renewable energy generated in remote areas to urban demand centres powering green energy economy. As many renewable projects are located in remote areas of Rajasthan or Gujarat, far from consumption hubs, supporting transmission links are essential. A 2023 report from the Central Electricity Authority highlighted that transmission lags have already delayed over 13 GW of renewable energy from reaching the grid. Innovations powering a resilient grid Integrating advanced technologies such as Voltage Source Converter-based HVDC systems, FACTS devices, synchronous condensers, and large-scale energy storage solutions e.g. battery energy storage systems (BESS) and pumped hydro is essential to ensure grid stability. Deployment of smart grid solutions including real-time monitoring systems, AI-based predictive maintenance, and IoT-enabled sensors for intelligent grid diagnostics enhance the overall efficiency of our infrastructure. Additionally, usage of dynamic line rating (DLR) to optimise the transmission capacity based on live weather data, ensuring greater operational flexibility. Looking ahead, the expected 70.5 GW additional load from green hydrogen and ammonia production by 2031–32 underscores the need for comprehensive and forward-looking grid planning. Recognising this, the government has released an updated Transmission Planning Criteria Manual through the Central Electricity Authority (CEA) and announced an investment of over ₹9 trillion in transmission infrastructure by 2032. Powering transmission across borders India's transmission story extends beyond its borders. Cross-border transmission lines with Nepal, Bhutan, and Bangladesh already facilitate power-sharing, with India exporting 12 TWh of clean energy to neighbours in 2024. With further infrastructure, India can become a clean energy hub for South Asia. The Central Electricity Authority (CEA) estimates that regional interconnections could grow by 50 per cent by 2030, enabling India to export surplus renewable power while strengthening diplomatic and trade ties. The grid must evolve Public funding alone cannot meet this scale of expansion in transmission infrastructure. States shall have to monetize existing transmission assets by transferring them to private players under fixed-term models, unlocking capital for new projects. In 2025, such asset monetisation deals released ₹25,000 crore for grid modernization. Regulators must also ensure stable, predictable returns for transmission investors. Unlike generation, transmission is capital-intensive with a long gestation period. A 2025 policy update by the Ministry of Power introduced tariff reforms to enhance investor confidence, targeting ₹2 lakh crore in private investment by 2030. Smart infrastructure powering energy transition India has a unique opportunity. Unlike many advanced economies burdened by ageing grids, India can build smart infrastructure from the ground up. In 2025, digital monitoring, AI-based grid controls, and automated substations are being integrated into new transmission projects. Yet, the window to act is narrow. Rising demand, global supply chain constraints, and climate targets demand urgency. Every gigawatt delayed risks delaying India's climate goals. Transmission must be treated as a core infrastructure to power India's growth, reduce fossil fuel dependence, and emerge as a clean energy leader. Transmission grids powering India's energy future India's transmission network is more than just a network of conductors and cables, it is the backbone supporting our energy aspirations. As we continue our transition towards a sustainable and resilient energy future, the grid will play a pivotal role in ensuring that power reaches every corner, from urban centres to remote villages. As highways enabled trade and telecom lines powered digital India, power transmission networks will define India's energy future. Leading this transformation means building more invisible highways that carry India's clean energy ambitions forward. Every megawatt generated is only useful if it travels to where it is needed. (The author is Arun Sharma, CEO of Resonia Limited. Views are personal.)
