💰 Financial Performance

Revenue Growth by Segment

Total revenue was INR 25.65 Cr in FY23, representing a 13.2% decline from INR 29.55 Cr in FY22. Segment-specific growth percentages were not disclosed.

Profitability Margins

Operating Profit Margin (OPM) improved to 3.90% in FY25 from 3.34% in FY24 (+16.76% YoY). Net Profit Margin (NPM) increased to 1.14% in FY25 from 0.84% in FY24 (+35.71% YoY) due to effective cost reduction strategies.

EBITDA Margin

Operating Profit Margin was 3.90% in FY25, up from 3.34% in FY24, reflecting a 16.76% improvement in core operational profitability.

Credit Rating & Borrowing

CRISIL Ratings withdrawn its ratings on bank facilities following a no-dues certificate and company request. Previous ratings were under 'ISSUER NOT COOPERATING' due to lack of information. Borrowing costs are minimized as debt was reduced to Nil in FY25.

⚙️ Operational Drivers

Raw Materials

Aluminum foils (primary raw material) used for slitting, lamination, coating, and printing. Specific cost percentages per material were not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth by targeting the Pharmaceutical and FMCG sectors, leveraging the unique properties of aluminum foils (protection from sunlight and preservation) to meet the increasing demand for well-packaged food and medicines.

Products & Services

Slitted, laminated, coated, and printed aluminum foils specifically designed for the pharmaceutical packaging industry.

Brand Portfolio

Synthiko Foils.

🌍 External Factors

Industry Trends

Aluminum is one of the fastest-growing metals globally. The industry is shifting toward more sophisticated packaging for Pharma and FMCG to ensure product longevity and safety.

Competitive Landscape

The segment is characterized by enhanced competition from new market entrants and established players in the non-ferrous metal industry.

Competitive Moat

The company's moat is based on the technical properties of aluminum foil for preservation. This is sustainable as long as pharmaceutical standards require high-barrier packaging, though it faces threats from changing packaging dynamics.

Macro Economic Sensitivity

Aluminum demand is expected to align with GDP growth rates, as it is heavily utilized in Power, Transport, and Construction sectors.

Consumer Behavior

Increased consumer interest in well-packaged food and preserved pharmaceutical products is driving steady demand growth.

Geopolitical Risks

Importations at cheaper prices from international markets pose a threat to domestic market share and pricing stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act, 2013 and Guidance Notes on Audit of Internal Financial Controls. The company maintains an audit trail feature in its accounting software to ensure regulatory compliance.

Legal Contingencies

The company reported zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Key risks include Forex fluctuations and competition from cheaper imports, which could impact margins by increasing input costs or forcing price reductions.

Technology Obsolescence Risk

Changing dynamics of packaging requirements pose a risk to the existing product folio, requiring constant adaptation to new industry standards.

Credit & Counterparty Risk

Debtors Turnover Ratio increased 8.56% YoY to 6.09 in FY25, indicating improved credit quality and timely realization of receivables.