TRT predicts revenue rising as recovery gathers pace

SET-listed Tirathai (TRT), a local transformer maker and service provider, expects to rack up more revenue this year after transmission development projects across Asia, which were delayed the last two years, resume in the fourth quarter.

Covid-19 caused governments to enforce lockdown measures to contain the virus, which dealt a blow to many businesses and affected TRT’s earnings.

This year the company expects its revenue to grow by 1.6% to 2.08 billion baht, up from 2.05 billion in 2021.

Most of the revenue, amounting to 1.77 billion baht, will come from the transformer segment, with the rest from its non-transformer businesses, said TRT managing director Sumpun Vongphan.

The latter involves steel fabrication, sales of aerial crane devices and construction conveyor systems, as well as maintenance services for conveyor belt systems.

Before the pandemic, the company averaged earnings of more than 2 billion baht a year.

TRT expects its earnings to return to normal in 2023, said Mr Sumpun.

He said demand for transformers and other devices is being driven by state grid and electricity generation system development, the industrial sector and overseas purchase orders.

State enterprises, factory operators and customers in foreign countries are TRT’s key sources of revenue, said Mr Sumpun. South Asia and Southeast Asia are the company’s two target markets.

He believes there are opportunities to earn revenue from projects in state and private auctions worth 11.4 billion baht. The company expects to secure projects worth 20-25% of the total auction value, said Mr Sumpun.

TRT indicated the company is clearing its backlog, which is mostly purchase orders valued at 1.32 billion baht as of last month.

‘‘ Demand for transformers and other devices is being driven by state grid and electricity generation system development, the industrial sector and overseas purchase orders.

SUMPUN VONGPHAN Managing director, Tirathai