Shares of Indo Tech Transformers (Indo Tech) jumped 10% to hit the upper circuit of Rs 358.65, hitting a fresh ten-year high in intraday trade on Friday. The stock was trading at its highest level since January 2010.

Shares of the heavy power equipment company rose for a fifth straight day, surging 82% after the company reported strong earnings for the March quarter (Q4FY23). In comparison, the S&P BSE Sensex gained 0.68% during the period.

Indo Tech is engaged in the manufacture of special transformers for power, power distribution, inverters, and converters, serving various industries such as power transmission, power generation, hydropower, wind energy, solar energy, steel, cement, textiles, utilities, DESCOMS, etc.

The company’s manufacturing plant is located in Kancheepuram, Tamil Nadu.

For the January-March quarter (Q4FY23), Indo Tech’s profit after tax (PAT) more than quadrupled to Rs 19.3 crore from Rs 6.06 crore a year earlier (Q4FY22). Meanwhile, the company’s operating income rose 45.7% year-on-year to Rs 144.7 crore compared to Rs 99.29 crore in Q4FY22.

Analysts believe that the growth of the population and the increase in electrification and per capita usage will further promote the growth of electricity demand. The government is introducing several power sector reforms to increase efficiency, facilitate decarbonisation and ensure (24X7) reliable and affordable electricity supply.

The industrial and commercial sectors together account for nearly 50% of the country’s electricity consumption, and the resumption of economic activity following the easing of pandemic restrictions has had a positive impact on overall demand.

Analysts assert that a gradual and calibrated resumption of economic activity will further support growth in electricity demand.

Credit rating agency ICRA has a “stable” rating outlook on Indo Tech, as they expect the company to maintain its credit profile, supported by expected continued revenue growth, comfortable debt coverage metrics and liquidity position.