💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Manufacturing & Trading of Stainless Steel. Revenue declined by 79.17% from INR 24 Cr in March 2022 to INR 5 Cr in March 2023. For the financial year ending March 31, 2025, the company reported nil manufacturing and job work activities, resulting in a total cessation of operational revenue.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company notes potential for exports to Southeast Asia, the Middle East, and Africa. Historically, operations were centered in India.

Profitability Margins

Profitability is severely distressed. Operating Profit Margin (OPM) deteriorated from -258% in March 2022 to -428% in March 2023. The Net Profit Ratio for FY 2024-25 was reported at -178580.42% compared to -1424.68% in the previous year, reflecting massive losses on zero revenue.

EBITDA Margin

EBITDA is deeply negative. Operating profit was -INR 20 Cr in March 2023 on sales of INR 5 Cr. The Return on Capital Employed (ROCE) was -3.26% for FY 2024-25, slightly improved from -2.00% in the prior period but still indicating a lack of core profitability.

Capital Expenditure

Fixed assets decreased from INR 224 Cr in March 2022 to INR 216 Cr in March 2023, suggesting no new capital expenditure and potential depreciation or asset sales. No planned CAPEX is mentioned for the steel business as operations are halted.

Credit Rating & Borrowing

The company has a history of credit rating updates from Brickwork Ratings, with the most recent on February 21, 2025. Borrowings stood at INR 67 Cr as of March 2023. The company has reached a one-time settlement (OTS) with Kotak Mahindra Bank Limited to repay outstanding debts.

⚙️ Operational Drivers

Raw Materials

Historically, raw materials included steel scrap and alloys for stainless steel production. Currently, these represent 0% of costs as manufacturing activities have been stopped due to a lack of working capital.

Capacity Expansion

There are no plans for capacity expansion in the steel segment. Instead, the company is shifting its strategic focus toward real estate business activities due to the unviability of its current steel operations.

Raw Material Costs

Raw material costs are currently negligible due to the shutdown of manufacturing. Historically, expenses (INR 25 Cr in Mar 2023) far exceeded revenue (INR 5 Cr), leading to the current operational halt.

Manufacturing Efficiency

Capacity utilization is 0% for the current period as all manufacturing activities have ceased. The workforce has been reduced to only 4 permanent employees as of March 31, 2025.

📈 Strategic Growth

Expected Growth Rate

-105%

Growth Strategy

The company plans to achieve future growth by pivoting from steel manufacturing to the real estate sector. This strategy involves exploring urban development and construction-grade steel demand. They are also pursuing a one-time settlement of bank debts to clean the balance sheet and attract potential investors for this new business direction.

Products & Services

Historically: Stainless steel wire rods and bars. Future: Real estate development and related business activities.

Brand Portfolio

India Steel Works.

New Products/Services

The company is transitioning into real estate services; however, the expected revenue contribution percentage from this new segment is not yet disclosed.

Market Expansion

The company is looking at the Indian real estate market, specifically fueled by rapid urbanization and government infrastructure initiatives like PM Gati Shakti.

Market Share & Ranking

Not disclosed; the company is currently non-operational in its primary sector.

Strategic Alliances

The company is in ongoing discussions with potential investors and lenders to revive operations, though no tangible progress has been achieved as of the latest report.

🌍 External Factors

Industry Trends

The steel industry is seeing a shift toward high-strength and specialty steel for EVs and infrastructure. However, the company is exiting active manufacturing to move into real estate, which is benefiting from Indian urbanization and government-led infrastructure growth.

Competitive Landscape

The company faces competition from global steel producers who create overcapacity and domestic real estate developers in its new target segment.

Competitive Moat

The company currently lacks a sustainable moat. Its historical steel business has been disrupted by high costs and lack of capital, and its new real estate venture is in the nascent, strategic-shift phase.

Macro Economic Sensitivity

Highly sensitive to interest rates and credit availability. The lack of working capital was the primary driver for the cessation of manufacturing operations.

Consumer Behavior

Rising demand for housing and commercial infrastructure in India is the primary consumer trend the company hopes to capitalize on through its real estate pivot.

Geopolitical Risks

Global steel overcapacity, particularly from China and Vietnam, and geopolitical tensions like the Russia-Ukraine conflict are cited as major threats to the steel industry's viability.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with Indian Accounting Standards (Ind AS) and SEBI Listing Obligations. It notes that the steel industry is subject to stringent environmental and regulatory requirements.

Taxation Policy Impact

The company has a 0% effective tax rate due to ongoing losses.

Legal Contingencies

The company faces significant contingent liabilities amounting to INR 231 Cr. It has reached a one-time settlement with Kotak Mahindra Bank to resolve outstanding debt defaults.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful transition to the real estate business and the ability to settle the remaining balance of the one-time settlement with lenders. Failure to do so could lead to liquidation.

Geographic Concentration Risk

Historically focused on the Indian market; current operations are nil.

Third Party Dependencies

High dependency on lenders (Kotak Mahindra Bank) and potential new investors for the survival of the entity.

Technology Obsolescence Risk

The company acknowledges rapid technological disruptions in the steel sector as a threat, which may have contributed to the unviability of its older manufacturing setup.

Credit & Counterparty Risk

Receivables quality is a concern; Debtor Days were 18 in March 2023, but the lack of new sales makes the collection of old dues critical for liquidity.