Intl. Combustion - Intl. Combustion

📊 BSE: 505737 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined 1.28% YoY to INR 292.98 Cr. Segment-wise performance: Mineral & Material Processing & Handling Equipment revenue was flat at INR 197.14 Cr (-0.1% YoY); Geared Motor and Gear Box revenue fell 6.68% to INR 75.84 Cr; Building Material revenue decreased 1.18% to INR 25.16 Cr.

Geographic Revenue Split

Not disclosed in available documents, though manufacturing units are located in Nagpur, Kolkata, Aurangabad, and Ajmer.

Profitability Margins

Operating Profit Margin significantly declined from 11.23% to 5.83% (a 48.09% drop) due to higher operating costs without sales growth. Net Profit Margin fell from 6.68% to 5.08% (a 23.95% drop). Return on Net Worth decreased from 17.98% to 11.76% (a 34.59% drop).

EBITDA Margin

Operating margin was 5.83% in FY25, down from 11.23% in FY24. Core profitability was impacted by a 57.78% drop in Profit Before Tax from operations, which fell from INR 32.07 Cr to INR 13.54 Cr.

Capital Expenditure

The company is undertaking ongoing capital expenditure of approximately INR 10 Cr for expansion and new product development.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL BBB/Stable/CRISIL A3+' ratings. Total bank loan facilities were enhanced to INR 125 Cr from INR 120 Cr. Interest Coverage Ratio declined 67.26% to 3.71x in FY25 due to higher interest costs and lower EBIT.

⚙️ Operational Drivers

Raw Materials

Steel and engineering components represent 50-60% of total operating revenue.

Capacity Expansion

Ongoing capex of INR 10 Cr is being utilized to enhance capacity. Current revenue capacity is approximately INR 300 Cr based on peak historical sales.

Raw Material Costs

Raw material costs account for 50-60% of operating revenue. Profitability is highly susceptible to volatility in these prices, as seen in the operating margin drop to 5.83% in FY25.

Manufacturing Efficiency

Capacity utilization is a key monitorable; H1 FY25 revenue of INR 123.36 Cr was lower than expected, indicating potential underutilization during the industry slowdown.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is introducing a new business vertical of Industrial Gear Boxes within the Geared Motors segment to tap into demand across various industries. It is also expanding marketing infrastructure for the Building Material division (CAPA products) to increase market reach and capitalize on high demand.

Products & Services

Heavy-duty grinding mills, screening and feeding equipment, conveyors, bulk material handling equipment, industrial gear boxes, geared motors, and dry mix mortars.

Brand Portfolio

Bauer Geared Motors, Cementos CAPA.

New Products/Services

Introduction of Industrial Gear Boxes as a new vertical within the Geared Motors segment in FY25.

Market Expansion

Expanding marketing infrastructure to increase the reach of the Building Material division across India.

Strategic Alliances

Technical tie-ups with Kuper GmbH, ADEN, Fleximat, Bauer Geared Motors GmbH, and Cementos CAPA.

🌍 External Factors

Industry Trends

The engineering and capital goods industry is cyclical and currently facing headwinds from a slowdown in core sectors. The industry is evolving toward high-end technical products and industrial automation, where the company is positioning itself through global technical collaborations.

Competitive Landscape

Intense competition from domestic players offering low-cost products, which has shrunk margins for the company's premium offerings.

Competitive Moat

Moat is built on a 90-year track record and technical tie-ups with global leaders like Bauer and Cementos CAPA, providing a technological edge and established relationships in core industries that are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to the investment cycles of core sectors like steel and mining; a slowdown in these sectors led to a 57.78% drop in operating PBT.

Consumer Behavior

Not applicable for B2B engineering products.

⚖️ Regulatory & Governance

Industry Regulations

The company operates under Indian Accounting Standards (IND AS) and maintains a Risk Management Plan and Vigil Mechanism as per SEBI regulations.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include the cyclicality of demand from the steel and mining sectors and the volatility of raw material prices, which account for 50-60% of revenue.