💰 Financial Performance

Revenue Growth by Segment

The Carbon Rod segment (100% of operations) grew 6.56% in value, with total gross income reaching INR 65.78 Cr compared to INR 61.73 Cr in the previous year.

Geographic Revenue Split

Domestic sales contributed 41% (INR 21.65 Cr) and export sales constituted 59% (INR 31.58 Cr) of total sales.

Profitability Margins

Net Profit Margin improved to 31.66% from 30.11% YoY. Profit Before Tax (PBT) margin stood at 42.52% for FY 2024-25.

EBITDA Margin

EBITDA margin (Profit before depreciation and tax) was 43.54% (INR 28.64 Cr), up from 41.74% (INR 25.77 Cr) in the previous year.

Capital Expenditure

Historical and planned capital expenditure not disclosed in absolute INR Cr; however, the company utilizes in-house design and fabrication for special purpose machines.

Credit Rating & Borrowing

The company is debt-free on both long-term and working capital requirements; surplus funds are invested in bank fixed deposits.

⚙️ Operational Drivers

Raw Materials

Natural resource-based materials (specific names not disclosed), Pyrolysis oil, and Artificial materials used for enhanced sustainability.

Import Sources

Not specifically disclosed, but the company competes against Chinese and Indonesian manufacturers.

Capacity Expansion

Current sales volume is 2548 mln pieces (99% of previous year's 2578 mln pieces); planned expansion details not quantified.

Raw Material Costs

Raw material costs are a major factor in competitiveness; the company saved approximately INR 21.65 Cr through indigenous production as an import substitute.

Manufacturing Efficiency

Volume sales maintained at 99% of previous year levels; fuel efficiency improved by 10% YoY.

📈 Strategic Growth

Expected Growth Rate

6.56%

Growth Strategy

Growth is targeted through the development of cost-effective new grade carbon rods to improve competitive power against Chinese and Indonesian manufacturers. The company is implementing low-cost automation and in-house machine fabrication to improve productivity. It also aims to expand export markets and has successfully developed seven varieties of semi-finished gouging carbon.

Products & Services

Carbon Rods for Zinc carbon batteries and semi-finished gouging carbon.

Brand Portfolio

Panasonic

New Products/Services

Successfully developed seven varieties of semi-finished gouging carbon; revenue contribution % not disclosed.

Market Expansion

Initiatives taken to increase exports by developing new export markets for products and services.

Market Share & Ranking

Only company in India manufacturing carbon rods for Zinc carbon batteries, effectively holding 100% domestic manufacturing share.

Strategic Alliances

Technical and financial collaboration with Panasonic Holdings Corporation, Japan (Parent Company).

🌍 External Factors

Industry Trends

The industry is evolving towards sustainability, with the company shifting to artificial materials and pyrolysis oil. The sector is growing in proportion to the Dry Cell Battery Industry.

Competitive Landscape

Intense competition from Chinese and Indonesian manufacturers on pricing and grade quality.

Competitive Moat

The company has a durable moat as the sole Indian manufacturer of carbon rods for Zinc carbon batteries, providing a critical import substitute. This is sustained by technical support from Panasonic Japan and a debt-free status.

Macro Economic Sensitivity

Highly sensitive to the growth and adverse conditions of the Dry Cell Battery Industry.

Consumer Behavior

Demand is driven by the consumption of dry cell batteries in domestic and international markets.

Geopolitical Risks

Trade competition with China and Indonesia; export house status (One Star) helps mitigate trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Carbon Rods are not covered under the ambit of mandatory cost audit under Section 148 of the Companies Act, 2013.

Environmental Compliance

Achieved 10% fuel consumption reduction and increased use of Pyrolysis oil to reduce CO2 generation.

Taxation Policy Impact

Effective tax rate of approximately 25.5% (INR 7.14 Cr provision on INR 27.97 Cr PBT).

Legal Contingencies

No significant material orders passed by regulators or courts impacting going concern status; no reported frauds.

⚠️ Risk Analysis

Key Uncertainties

Volatility in natural resource prices and competitive pricing pressure from overseas manufacturers could impact margins by up to 10-15%.

Geographic Concentration Risk

59% revenue concentration in export markets; 41% in the Indian domestic market.

Third Party Dependencies

High dependency on Panasonic Holdings Corporation, Japan, for technical know-how and brand licensing.

Technology Obsolescence Risk

Risk of technological shifts in battery chemistry; mitigated by R&D into new carbon grades and gouging carbon varieties.

Credit & Counterparty Risk

Not disclosed; company maintains a debt-free status with surplus cash.