💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 28.18% YoY to INR 348.17 Cr in FY24 from INR 271.62 Cr in FY23. Segment-specific growth is not explicitly detailed, but the company is transitioning from low-margin color coated steel coils to high-margin stone coated roofing products.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates a manufacturing unit in Umargaon, Gujarat and is planning a new facility in Tala, District Raigad, Maharashtra.

Profitability Margins

The company achieved a significant turnaround with a Net Profit Margin of 2.20% in FY24 (INR 7.65 Cr) compared to a net loss in FY23 (INR 7.50 Cr). PBT margin stood at 2.25% for FY24.

EBITDA Margin

EBITDA margin for FY24 was approximately 4.92% (INR 17.13 Cr), calculated from PBT of INR 7.85 Cr plus finance costs of INR 6.64 Cr and depreciation of INR 2.64 Cr.

Capital Expenditure

Planned capital expenditure involves setting up a new manufacturing facility at Tala, District Raigad for Stone Coated Roofs and a Color Coating Plant to increase capacity and logistical feasibility.

Credit Rating & Borrowing

Total borrowings as of March 31, 2024, stood at INR 45.76 Cr (INR 33.36 Cr non-current and INR 12.41 Cr current). Finance costs increased 11.04% YoY to INR 6.64 Cr.

⚙️ Operational Drivers

Raw Materials

Steel coils (PPGI, PPGL), Aluminium coils (PPAL), stone chips, and asphalt. Cost of materials consumed represented 60.68% of revenue (INR 211.25 Cr) in FY24.

Import Sources

China, South Korea, and New Zealand are primary sources for stone coated roof tiles, with India being the 2nd largest importer globally.

Key Suppliers

The company sources from 67 global suppliers for stone coated roof tiles, though specific company names are not disclosed.

Capacity Expansion

Current installed capacity at the Umargaon, Gujarat facility exceeds 90,000 MTPA. Planned expansion includes a new facility at Tala, District Raigad for Stone Coated Roofs and future capacity increases.

Raw Material Costs

Raw material costs (materials consumed + stock-in-trade) totaled INR 333.87 Cr in FY24, representing 95.89% of operational revenue, reflecting a high-volume, low-margin legacy business model.

Manufacturing Efficiency

The company utilizes a state-of-the-art Colour Coating Line with a capacity exceeding 90,000 MTPA; specific utilization percentages were not disclosed.

Logistics & Distribution

The company is optimizing distribution by shifting to the Tala, Raigad location, which is described as more logistically feasible than the existing Umbergaon setup.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

LATIM aims to be the first Indian brand for Stone Coated Roofing, targeting a market projected to grow at a 20% CAGR. The strategy involves diversifying from low-margin color coated steel (legacy) to high-margin stone coated roofing and solar roofing products, supported by a new manufacturing facility in Maharashtra.

Products & Services

Colour Coated Steel Coils (PPGI, PPGL, PPAL), Design Coated/Printed Steel Coils, Stone Coated Steel Roofing, Asphalt Shingles, and Stone Coated Solar Roofing.

Brand Portfolio

LATIM, LATINA.

New Products/Services

Launched Stone Coated Solar Roofing and Asphalt Shingles in 2024; Stone Coated Steel Roofing manufacturing unit planned for 2026.

Market Expansion

Targeting premium homes, bungalows, villas, and gated townships across India; focusing on the rural-urban divide where rural India relies on suboptimal roofing.

Market Share & Ranking

Aims to be one of the Top 5 preferred brands in India in the building materials industry.

🌍 External Factors

Industry Trends

The Indian roofing market is evolving from traditional thatched/suboptimal materials to sophisticated solutions like stone coated steel, growing at a 20% CAGR to reach $10.5 million by 2027.

Competitive Landscape

Market is currently dominated by traders importing premium global brands or unbranded budget products from China; LATIM is the primary Indian manufacturing challenger.

Competitive Moat

First-mover advantage as the first Indian manufacturer of stone coated roofing; brand positioning under 'Make in India' provides a competitive edge over disorganized traders.

Macro Economic Sensitivity

Highly sensitive to India's infrastructure growth ('Amrut Kaal') and rapid urbanization, which drives demand for durable roofing solutions.

Consumer Behavior

Increasing consumer preference for aesthetic, weather-resistant (hurricane/earthquake proof), and energy-efficient (reflective) roofing materials.

Geopolitical Risks

Trade relations with China and South Korea are critical due to high import volumes of stone coated roof tiles.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by HSN codes for steel and roofing imports (73089090, 73082019, 35069999) and standard manufacturing norms.

Environmental Compliance

Focusing on eco-friendly solutions like Solar Roofing and reflective shingles to reduce carbon footprints and cooling costs.

Taxation Policy Impact

Effective tax rate impacted by deferred tax liabilities of INR 19.97 lakhs in FY24.

⚠️ Risk Analysis

Key Uncertainties

Success of the transition from low-margin trading/processing to high-margin manufacturing of roofing products; potential impact of 20% CAGR market projections being realized.

Geographic Concentration Risk

Manufacturing is concentrated in Western India (Gujarat and Maharashtra).

Third Party Dependencies

Significant dependency on 67 global suppliers for imported stone coated tiles until the new Indian manufacturing unit is operational.

Technology Obsolescence Risk

Mitigated by launching innovative products like Stone Coated Solar Roofing to align with renewable energy trends.

Credit & Counterparty Risk

Trade receivables increased 20.5% to INR 18.60 Cr in FY24, representing approximately 5.3% of annual revenue.