💰 Financial Performance

Revenue Growth by Segment

Total Revenue from operations for FY 2024-25 was INR 789.20 Cr, representing a decline of 18.25% YoY from INR 965.41 Cr. TMT Rebars revenue decreased by 8.36% to INR 697.74 Cr, while MS Ingot/MS Billet revenue grew by 17.71% to INR 41.35 Cr.

Geographic Revenue Split

Operations are concentrated in Odisha (Rajgangpur) and Karnataka (Ballari). Odisha serves as the primary market where the company is a recognized local brand, though specific percentage splits per state are not disclosed.

Profitability Margins

Operating margins have been volatile, ranging between 4.5% and 5.8% over the last three fiscals due to input price fluctuations. Standalone Profit After Tax (PAT) grew 10.57% to INR 19.61 Cr, while Consolidated PAT grew 2.84% to INR 21.65 Cr.

EBITDA Margin

The interest coverage ratio has increased substantially due to higher EBITDA margins and lower interest on debt, driven by operational efficiency in finished product production.

Capital Expenditure

The company is funding projects through a mix of internal accruals and bank borrowings. It is currently expanding capacity through brownfield and greenfield projects, including a new MS pipe mill facility.

Credit Rating & Borrowing

Crisil Ratings reaffirmed 'Crisil BBB+/Stable' for long-term and 'Crisil A2+' for short-term facilities on July 15, 2025. Bank limit utilization averaged 61% for the 12 months ended May 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include iron ore, coal, sponge iron, and mild steel (MS) scrap. These materials are critical as fluctuations in their prices directly cause the 1.3% variance seen in operating margins (4.5%-5.8%).

Import Sources

Sourced primarily from domestic markets near plant locations in Odisha and Karnataka to ensure raw material security and cost competitiveness.

Key Suppliers

Not specifically named in the documents, but the company maintains long-term relationships with suppliers established over two decades.

Capacity Expansion

The company operates an integrated steel plant in Rajgangpur, Odisha, and a sponge iron facility in Ballari, Karnataka. It is planning to add a manufacturing facility for an MS pipe mill (square and round shapes) in the near future.

Raw Material Costs

Raw material costs are a significant contributor to input costs. Volatility in iron ore and coal prices is a primary weakness, impacting the cost of production and causing operating margins to fluctuate between 4.5% and 5.8%.

Manufacturing Efficiency

Operational efficiency in finished products led to a substantial increase in net profit margins. MS Ingot/Billet production quantity increased by 32.13% to 10,750 MT in FY 2024-25.

Logistics & Distribution

The company is optimizing its logistics network and improving operational capacity at loading/unloading points to manage distribution costs and supply chain disruptions.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth will be achieved through capacity expansion (greenfield and brownfield), diversifying into MS pipe manufacturing, and increasing the sales mix of value-added branded products like SHRISHTII TMT and SHRISHTII ROOFING.

Products & Services

TMT Rebars, MS Ingots, MS Billets, Sponge Iron, and Roofing sheets used for warehousing and parking sheds.

Brand Portfolio

SHRISHTII TMT, SHRISHTII ROOFING.

New Products/Services

New MS pipe mill facility for square and round pipes is expected to contribute to future revenue streams and product diversification.

Market Expansion

Targeting iconic national infrastructure projects and expanding the dealer network in rural and urban areas to capture India's infrastructure-led growth phase.

Market Share & Ranking

The company is a leading local brand in Odisha; however, the secondary steel industry remains highly fragmented, constraining overall pricing power.

🌍 External Factors

Industry Trends

The Indian steel sector grew 13% in FY24. The industry is shifting toward low-carbon 'green steel' and value-added products to meet infrastructure modernization needs.

Competitive Landscape

Faces intense competition from other secondary steel producers and substitute materials, which limits scalability and pricing flexibility.

Competitive Moat

Moat is built on 20+ years of promoter experience, integrated operations (captive power + SMS + rolling mills), and strong brand equity in the Odisha region.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (steel demand elasticity of 1.8) and urbanization (elasticity of 3.0). Government infrastructure spending is a key driver.

Consumer Behavior

Shifting customer preferences toward higher-strength steel and sustainable materials are driving the company to adopt newer grades and advanced materials.

Geopolitical Risks

Geopolitical tensions and the economic slowdown in China disrupt global steel trade volumes, impacting domestic pricing and increasing raw material costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to stringent labor laws and environmental pollution norms. Compliance is managed through a corporate governance policy and regular internal audits.

Environmental Compliance

The company is evaluating investments in cleaner production technologies and renewable energy integration to align with national decarbonization goals.

Taxation Policy Impact

Direct tax collections in India grew 18.5% and GST 11.7%, providing fiscal space for government infrastructure spending which benefits the company.

Legal Contingencies

The company maintains a compliance management system and legal consultations for timely clearances, though specific pending court case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (iron ore/coal) and cyclicality in the steel sector are the primary uncertainties that could impact margins by over 1%.

Geographic Concentration Risk

High concentration in Odisha exposes the company to regional policy changes and local economic slowdowns in infrastructure projects.

Third Party Dependencies

Dependence on outsourced partners for logistics and potential disruptions at raw material suppliers due to political instability.

Technology Obsolescence Risk

Risk of fast-paced technological changes requiring the adoption of newer steel grades; mitigated by investing in emerging technologies and digitalization.

Credit & Counterparty Risk

Liquidity is adequate with INR 26 Cr in liquid investments and expected cash accruals of INR 30-33 Cr against nil repayment obligations.