Quality Power Clarifies on Media Reports Amid Investor Queries

Quality Power Electrical Equipments Ltd has released a clarification in response to recent media reports and investor queries concerning the Government of India’s consideration of easing restrictions on Chinese companies bidding for government contracts. This clarification is issued under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has addressed concerns related to its operations in the electrical equipment sector, particularly in light of these potential regulatory changes.

The company has highlighted that a significant portion of its revenue is dollar-denominated, which provides a natural diversification and insulation from domestic policy changes. This financial structure supports the company’s stability amidst potential regulatory shifts. Quality Power has consistently competed with Chinese manufacturers for over three decades, establishing a strong presence in both domestic and international markets. The company has references in over 100 countries, demonstrating its extensive global reach and competitive capability.

Quality Power operates in highly specialized, technology-intensive segments of the power transmission equipment industry, including HVDC and FACTS related equipment and solutions. These segments are characterized by stringent technical qualifications, long approval cycles, geopolitical clearances, and high entry barriers. The company’s current order book provides revenue visibility for more than one year, supported by a strong and active global bid pipeline across multiple geographies and customer segments. The company has reiterated that it does not foresee any adverse impact on its growth strategy, revenues, or operating margins in the short to medium term.

The company has emphasized its manufacturing strength and cost position, with a focus on its Make in India manufacturing base serving both domestic and export markets. The upcoming Global Coil Manufacturing Facility is expected to be commissioned during the year. This facility is designed to be highly efficient, vertically integrated, and globally cost-competitive, enabling superior control over quality, cost, and delivery timelines. Quality Power continues to focus on technology leadership, execution excellence, and global diversification as central to its long-term strategy.

The company has stated that it will continue to engage transparently with investors and the market, in accordance with applicable regulatory requirements. The press note containing these clarifications will be available on the company’s website for stakeholders’ reference.

Quality Power Electrical Equipments Ltd specializes in the power transmission equipment industry, focusing on HVDC and FACTS related equipment and solutions. The company prioritizes technology leadership, execution excellence, and global diversification as part of its long-term strategy. It aims to maintain its competitive edge in the market by leveraging its manufacturing capabilities and global presence.