Nitin Castings - Nitin Castings

📊 BSE: 508875 🏢 Castings & Forgings 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Alloy Steel Castings. Total revenue reached INR 150.57 Cr in FY25, representing a 1.1% growth compared to INR 148.92 Cr in FY24. This follows a significant growth trajectory from INR 97 Cr in FY22, a 55.2% increase over two years.

Geographic Revenue Split

Domestic sales account for approximately 90% of revenue, while international exports contribute the remaining 10% (INR 15 Cr in FY25).

Profitability Margins

Net Profit After Tax (PAT) margin stood at 8.24% in FY25 (INR 12.41 Cr) compared to 8.14% in FY24 (INR 12.13 Cr). Operating margins have historically fluctuated between 7.5% and 10.9% due to raw material price volatility.

EBITDA Margin

Operating margin was reported at approximately 9.38% for the first nine months of FY24. Core profitability is supported by a high Return on Capital Employed (ROCE) of 43.39% in FY25, though this decreased from 46.81% in FY24.

Capital Expenditure

The company maintains a total manufacturing capacity of 2,400 MTA. While specific INR figures for future capex are not disclosed, growth is expected to be driven by capacity ramp-up and accruals exceeding INR 12-18 Cr annually.

Credit Rating & Borrowing

CRISIL upgraded the company's rating to 'CRISIL BBB/Stable/CRISIL A3+' in May 2024 and reaffirmed it in August 2025. The company maintains a conservative capital structure with a debt-to-equity ratio of 0.09x and an interest coverage ratio of 44.72x in FY25.

⚙️ Operational Drivers

Raw Materials

Key raw materials include stainless-steel scrap, mild steel scrap, nickel, and ferroalloys. These materials are critical for manufacturing heat, wear, and corrosion-resistant ferrous and alloy metals.

Import Sources

Not specifically disclosed, though the company operates manufacturing units in Silvassa and Vapi, sourcing materials for its 2,400 MTA capacity.

Capacity Expansion

Current installed capacity is 2,400 MTA. Future growth is predicated on the ramp-up of this existing capacity to meet demand from the construction and mining equipment industries.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; operating margins are highly susceptible to price volatility in nickel and scrap, with a time lag in passing these costs to customers.

Manufacturing Efficiency

The company employs Centrifugal, Sand Casting, Shell Molding, and Investment Casting methods. Efficiency is reflected in a strong interest coverage ratio of 44.72x.

Logistics & Distribution

Distribution costs are influenced by fuel price fluctuations which impact transportation expenses for delivering heavy alloy castings.

📈 Strategic Growth

Expected Growth Rate

7.2%

Growth Strategy

Growth will be achieved by leveraging the 7.2% CAGR of the global alloy steel market, expanding capacity utilization at the Silvassa and Vapi plants, and capitalizing on government infrastructure projects which drive demand for construction and mining equipment.

Products & Services

Alloy steel castings including valves, casings, sleeves, rings, rollers, and chain links used in cement, petrochemicals, and steel industries.

Brand Portfolio

Nitin Castings Limited.

New Products/Services

The company focuses on custom-order products specific to size, shape, and grade requirements of industrial clients; specific new product launch percentages are not disclosed.

Market Expansion

Targeting increased penetration in the international market, which currently contributes 10% of revenue, and expanding domestic reach in the automotive and manufacturing sectors.

Market Share & Ranking

The industry is highly fragmented with many unorganized players; specific market share percentage is not disclosed.

🌍 External Factors

Industry Trends

The global alloy steel market is growing at 7.2% CAGR (2025-2030), driven by demand for high-strength, corrosion-resistant materials in the automotive and manufacturing sectors.

Competitive Landscape

Highly fragmented industry with intense competition from regional unorganized players and cyclical demand from large steel players.

Competitive Moat

The company's moat is built on 50+ years of promoter experience and technical expertise in specialized casting methods (Centrifugal, Investment Casting), which are difficult for unorganized players to replicate.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and GDP growth, as these drive demand for the Construction & Mining Equipment Industry.

Consumer Behavior

Industrial shift toward advanced manufacturing techniques is increasing the demand for high-performance alloy steels.

Geopolitical Risks

Global economic reforms and trade policies affect the 10% export business, particularly in the alloy steel market valued at USD 88.45 billion.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ministry of Corporate Affairs (MCA) norms and environment protection standards for manufacturing plants in Silvassa and Vapi.

Environmental Compliance

The company follows environment-friendly norms with necessary clearances for casting manufacturing; specific ESG costs are not disclosed.

Taxation Policy Impact

The company follows Indian Accounting Standards (Ind-AS). Specific effective tax rate % is not disclosed.

Legal Contingencies

The company notes that litigation is a factor that could affect operations, but no specific pending case values in INR are disclosed.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and cyclicality of the steel industry are primary risks. A decline in operating margins below 7-8% would trigger a credit rating review.