RRPSemiconductor - RRPSemiconductor
Financial Performance
Revenue Growth by Segment
Total revenue grew by 8,213.5% YoY, increasing from INR 38.00 Lakh in FY23 to INR 3,159.14 Lakh in FY24, primarily driven by the company's entry into the trading of electronic parts and semiconductor activities.
Geographic Revenue Split
Not disclosed in available documents, though the company focuses on the Indian semiconductor industry and aims to emerge as a global player.
Profitability Margins
Net Profit Margin stood at 26.79% in FY24 (INR 846.37 Lakh profit on INR 3,159.14 Lakh revenue), a significant turnaround from a net loss of INR 1.70 Lakh in FY23.
EBITDA Margin
Profit Before Tax (PBT) margin was 36.28% (INR 1,146.37 Lakh) in FY24, compared to a negative margin in the previous year, reflecting high profitability in the new semiconductor trading business.
Capital Expenditure
The company raised capital through a preferential issue of 1,35,25,000 equity shares at a face value of INR 10 each (approximately INR 13.52 Cr) to fund its expansion into the semiconductor FAB center and trading activities.
Credit Rating & Borrowing
The company took a loan of INR 857.58 Lakh from a group company, RRP Drones Innovation Pvt Ltd, and paid interest of INR 8.42 Lakh during FY25. No formal credit rating is mentioned.
Operational Drivers
Raw Materials
Electronic parts and semiconductor chips represent the primary cost of goods sold, though specific percentage breakdowns for each component are not provided.
Import Sources
Not disclosed in available documents, but the company mentions reliance on complex global supply chains for semiconductor components.
Key Suppliers
RRP Electronics Ltd (Group Company) supplied goods/services worth INR 15.48 Lakh; RRP S4E Innovation Limited supplied goods worth INR 1.0 Lakh.
Capacity Expansion
The company is transitioning from a trading-only model to establishing a semiconductor FAB center to manufacture electronic devices and chips.
Raw Material Costs
Total expenditure was INR 2,048.76 Lakh in FY24, representing 64.8% of revenue, primarily driven by the procurement of electronic components for trading.
Manufacturing Efficiency
Not disclosed as the company is currently in the commencement phase of its new semiconductor business object.
Strategic Growth
Expected Growth Rate
Not disclosed
Growth Strategy
The company plans to achieve growth by leveraging the Government of India's PLI Scheme (incentives and subsidies) and the 'Make in India' initiative. It has changed its main business object to semiconductors and electronics to capture the growing domestic demand for chips and is establishing a FAB center.
Products & Services
Semiconductor chips, electronic devices, and electronic parts for industrial and consumer applications.
Brand Portfolio
RRP Semiconductor Limited (formerly G D Trading & Agencies Limited).
New Products/Services
Commencement of semiconductor chip manufacturing and FAB center operations, expected to be the primary revenue driver in future periods.
Market Expansion
Expansion into the Indian semiconductor sector with a focus on becoming a global player in electronic device supply.
Strategic Alliances
Related party transactions with RRP Electronics Ltd, RRP Drones Innovation Pvt Ltd, and RRP S4E Innovation Limited for loans, trading, and infrastructure.
External Factors
Industry Trends
The Indian semiconductor industry is growing rapidly due to government support (PLI schemes) and a shift toward domestic electronics manufacturing. The industry is evolving from pure trading to local design and R&D-led manufacturing.
Competitive Landscape
Faces stiff competition in the finance field and emerging competition from large global and domestic players in the semiconductor space.
Competitive Moat
The company's moat is based on early alignment with the 'Make in India' semiconductor policy and its transition into a specialized FAB center, though sustainability depends on attracting highly skilled talent.
Macro Economic Sensitivity
Highly sensitive to global economic downturns and fluctuations in consumer demand for electronics, which directly impact semiconductor sales.
Consumer Behavior
Increased demand for personal finance and electronic devices is driving the company's shift toward semiconductor manufacturing.
Geopolitical Risks
Trade disputes and geopolitical tensions are cited as major threats to the semiconductor supply chain, potentially causing production delays.
Regulatory & Governance
Industry Regulations
Subject to the Information Technology Act 2000 and Software Technology Parks of India (STPI) rules and regulations.
Taxation Policy Impact
Provision for taxation was INR 300.00 Lakh in FY24, representing an effective tax rate of approximately 26.17% on PBT.
Risk Analysis
Key Uncertainties
Shortage of highly skilled professionals (engineers/technicians) could impede technological advancement by 15-20%. High capital requirement for FAB centers poses a financial risk.
Geographic Concentration Risk
Operations are primarily centered in Mahape, Thane (Maharashtra), with a focus on the Indian market.
Third Party Dependencies
Significant dependency on group companies (RRP Electronics, RRP Drones) for loans and initial trading activities.
Technology Obsolescence Risk
High risk due to the rapid pace of semiconductor innovation; failure to invest in R&D could lead to products becoming outdated quickly.
Credit & Counterparty Risk
The company has extended a loan of INR 668.71 Lakh to RRP Electronics Ltd, creating counterparty credit exposure.