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Hind Rectifiers


Hind Rectifiers manufactures rectifiers and converter/inverter equipment for the power electronics and power conversion industry.

The company is a leader in several of its market segments.  It has a prominent customer base including Indian Railways and other multinational companies located in several countries including those in Europe.   It also carries out trading activities in semi-conductor devices and capacitors amounting to less than 10% of total revenues.

The company has reported reasonably stable operating profits on similar revenues over the last five years – reporting about 15cr of operating profits on revenues of over 100cr in the last financial year.  It employed minimal net debt in financing its operations as at 30th September, 2011.

The primary risk pertains to a concentration of sales to the Indian Railways.  Although a large, stable and prominent customer, revenues would decline substantially if it were to lose this customer for any reason.  It is also exposed to price increases in its inputs such as electrical accessories, semi-conductor equipment and non-ferrous metals.  It is also a net importer and is hence, exposed to INR depreciation.
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