TRF - TRF

📊 NSE: TRF 🏢 Engineering 📅 Last Updated: 12/14/2025 14:32

💰 Financial Performance

Revenue Growth by Segment

In FY25, the Projects & Services segment revenue grew 61.8% to INR 15.65 Cr (from INR 9.67 Cr), while the Products & Services segment revenue declined 21.7% to INR 105.33 Cr (from INR 134.46 Cr). Overall operating income declined 20.5% YoY in FY24 to INR 140.69 Cr from INR 177.10 Cr in FY23.

Geographic Revenue Split

TRF Singapore Pte Limited reported a turnover of SGD 338.24k (approx. INR 2.15 Cr) for FY25, contributing roughly 1.7% to consolidated turnover. TRF Holdings Pte Limited reported zero turnover.

Profitability Margins

Net Profit Margin for FY25 was 22.88%, a decline from 28.08% in FY24. Operating Profit Margin for FY25 stood at 22.37%, down from 23.45% in FY24. Total comprehensive profit for FY25 was INR 28.01 Cr, a 33.4% decrease from INR 42.08 Cr in FY24.

EBITDA Margin

PBILDT margins were 29.78% in 9MFY24 and 33.02% in FY23. The high margins in FY23 were partially supported by a write-back of provisions amounting to INR 40 Cr from legacy projects.

Capital Expenditure

Not disclosed in available documents; however, the company repaid INR 57 Cr of long-term debt and INR 107 Cr of working capital borrowings in FY23 using proceeds from preference share issuances.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE A-; Stable (reaffirmed Feb 2024). Borrowing costs are linked to preference shares: 12.17% for INR 239 Cr NCRPS and 12.5% for INR 250 Cr NCRPS issued to Tata Steel Limited.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material used for manufacturing material handling equipment; specific percentage of total cost is not disclosed.

Import Sources

Sourced domestically within India, specifically from Jamshedpur due to proximity to the supplier.

Key Suppliers

Tata Steel Limited (TSL) is the primary supplier of raw materials (steel) and also provides shared resources for fixed overhead management.

Capacity Expansion

Current installed capacity is not specified in MT; however, the company operates a manufacturing facility at Jamshedpur for bulk material handling equipment.

Raw Material Costs

Raw material costs are exposed to fluctuations in steel commodity prices; procurement is strategically linked to Tata Steel Limited to maintain a competitive advantage.

Manufacturing Efficiency

Efficiency is driven by the proximity of the TRF plant to the TSL plant, reducing logistics costs and improving service levels for the primary customer.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is shifting focus from external tender-driven EPC projects to providing dedicated services and products to Tata Steel Limited (TSL). Growth is contingent on TSL's planned capital expenditure, scaling up operations to meet TSL's internal requirements, and improving the execution of projects within estimated cost structures.

Products & Services

Crushers, screens, feeders, sectional and mine conveyors, vibrating screens, and EPC turnkey projects for bulk material handling systems.

Brand Portfolio

TRF, Tata-Robins-Fraser.

New Products/Services

Introduction of new variants in the material handling equipment portfolio; specific revenue contribution percentages for new variants are not disclosed.

Market Expansion

The company has historically expanded into international markets (Singapore), but current strategy forecasts providing services primarily to TSL in the coming years.

Strategic Alliances

Strong operational and financial linkages with Tata Steel Limited (34.12% stake); treasury departments of both companies are undergoing a merger to provide liquidity cushions.

🌍 External Factors

Industry Trends

The material handling industry is evolving with intense competition from domestic and international players. TRF is positioning itself as a captive-like provider for TSL to mitigate the risks of aggressive tender-based bidding.

Competitive Landscape

Key competitors include Elecon Engineering Co Ltd, L&T, and ThyssenKrupp.

Competitive Moat

Moat is based on the 60-year track record and deep integration with the Tata Group. Sustainability is high as long as TSL continues its capex, but the moat is narrow regarding external clients due to intense competition.

Macro Economic Sensitivity

Highly sensitive to infrastructure development cycles in the power, steel, cement, ports, and mining industries.

Consumer Behavior

Shift in industrial demand toward customized, high-efficiency material handling systems in the infrastructure sector.

Geopolitical Risks

Exposure to international market conditions through Singapore-based subsidiaries TRF Singapore Pte Ltd and TRF Holdings Pte Ltd.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with the Companies Act 2013 and Rule 9 of the Companies Rules 2014 as per the Secretarial Audit Report.

Taxation Policy Impact

Provision for tax in FY25 for TRF Singapore Pte Ltd was SGD 513.95k.

Legal Contingencies

The company faces challenges in collecting old debtors due to underlying contractual issues, with INR 11.18 Cr still outstanding from legacy projects as of Sept 2024. Accumulated losses stood at INR 550 Cr as of FY24.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the potential weakening of linkages with Tata Steel Limited, which would significantly impact order inflows and financial support.