💰 Financial Performance

Revenue Growth by Segment

Total income for FY 2024-25 was INR 36.29 Cr, representing a 53.4% decline from INR 77.90 Cr in FY 2023-24. Treasury operations income plummeted 94.4% to INR 1.53 Cr from INR 27.54 Cr due to market volatility. Real estate leasing revenue was impacted by the absence of a one-time INR 25 Cr property sale recorded in the previous year.

Geographic Revenue Split

Primary operations are concentrated in Noida, Uttar Pradesh (Sector 62 facility) and Greater Noida. Historical manufacturing operations were based in Ludhiana, Punjab, which the company is currently exiting through asset sales.

Profitability Margins

Profit Before Tax (PBT) margin collapsed from 66.2% (INR 51.62 Cr) in FY 2023-24 to -0.25% (INR -0.09 Cr) in FY 2024-25. This was driven by the lack of one-time asset sales and a significant decline in treasury income.

EBITDA Margin

Core profitability was severely impacted by market volatility and the transition away from manufacturing. Return on Net Worth was reported as unfavorable compared to the previous year due to the 53.4% drop in total income.

Capital Expenditure

The company is pursuing Strategic CapEx for enhancing total revenue through the purchase of more real estate assets for investment and growth as favorable opportunities arise.

Credit Rating & Borrowing

ICRA withdrew the long-term rating of [ICRA]BBB (Negative) and short-term rating of [ICRA]A3+ in March 2018 at the company's request. The parent company has eliminated its debt, though the subsidiary ETPL carries debt to enhance Return on Equity (RoE).

⚙️ Operational Drivers

Raw Materials

Historically, manufacturing used steel and electrical components for fine blanking and mopeds. Current real estate operations do not have traditional raw material inputs.

Import Sources

Not disclosed in available documents for current operations.

Key Suppliers

Not disclosed in available documents for current operations.

Capacity Expansion

The Noida Sector 62 facility is the primary asset. The company is awaiting permissions from the Greater Noida Authority to transfer certain assets and receive final payments.

Raw Material Costs

Not applicable for current real estate leasing business; historically, manufacturing costs were rationalized by shifting fine blanking from Ludhiana to Greater Noida in 2017.

Manufacturing Efficiency

Manufacturing has been largely phased out; historical efficiency was sought through consolidating lines at Greater Noida to reduce employee and transportation costs.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved by purchasing new real estate assets, enhancing the value of the Noida facility through prestigious client acquisitions, and expanding co-working spaces in collaboration with Awfis. The company is also exiting non-core assets like Emirates Technologies Private Limited (ETPL) to deleverage and reinvest.

Products & Services

Commercial office space leasing, factory space leasing, facility management services, and co-working space seats.

Brand Portfolio

Majestic Auto Limited, Emirates Technologies Private Limited (ETPL), and Awfis (co-working partner).

New Products/Services

New co-working space in collaboration with Awfis has been launched to occupy seats left vacant during the pandemic.

Market Expansion

Focusing on the Noida real estate market and exploring new investment opportunities in commercial and factory leasing.

Strategic Alliances

Strategic collaboration with Awfis for co-working spaces in the Noida facility.

🌍 External Factors

Industry Trends

The industry is shifting toward flexible office solutions (co-working) and facility management. Majestic is positioning itself by partnering with Awfis and focusing on commercial leasing.

Competitive Landscape

Competes with other commercial real estate developers and facility management providers in the Delhi-NCR region.

Competitive Moat

The moat is built on a debt-free parent balance sheet, strategic real estate locations in Noida Sector 62, and long-term relationships with high-quality corporate tenants.

Macro Economic Sensitivity

Highly sensitive to stock market volatility, which caused a 94.4% drop in treasury income. Also sensitive to economic and sectoral investment outlooks.

Consumer Behavior

Shift in tenant behavior post-COVID toward co-working spaces and flexible leasing terms.

Geopolitical Risks

Economic developments and possible risks of lockdowns in certain geographies are cited as potential operational disruptors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and permissions from the Greater Noida Authority.

Environmental Compliance

The company identifies environmental risk as a factor that could impact future developments.

Legal Contingencies

The company was subject to an adjudication order by SEBI dated June 7, 2024. No other specific pending court cases with values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Market risk from treasury operations (94.4% impact on treasury income), regulatory risks regarding asset transfers, and sectoral investment outlook volatility.

Geographic Concentration Risk

High concentration in Noida, Uttar Pradesh, for its core real estate assets.

Third Party Dependencies

Dependency on the Greater Noida Authority for asset transfer permissions and Awfis for co-working operations.

Credit & Counterparty Risk

The company manages credit and counterparty risk through robust risk management policies and client selection.