Krishanveer Forg - Krishanveer Forg

📊 BSE: 513369 🏢 Castings & Forgings 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue decreased by 0.59% YoY to INR 8,375.65 Lakhs from INR 8,425.45 Lakhs. Domestic sales contributed INR 8,271.86 Lakhs (98.7% of total), while export sales contributed INR 7.79 Lakhs (0.09% of total).

Geographic Revenue Split

The company is heavily domestic-focused with 98.7% of sales (INR 8,271.86 Lakhs) coming from India. Export sales represent a minimal 0.09% at INR 7.79 Lakhs, despite serving global oil and gas clients.

Profitability Margins

Operating Profit Margin improved from 7.12% to 9.31% (up 219 bps). Net Profit Margin increased from 4.74% to 6.73% (up 199 bps) due to cost optimization and internal accrual-based financing.

EBITDA Margin

EBIDTA grew 24.31% YoY to INR 932.11 Lakhs from INR 749.79 Lakhs, reflecting improved core operational efficiency despite a slight dip in total revenue.

Capital Expenditure

Historical and planned capex values are not disclosed in absolute INR, but the company maintains a 'prudent capex investment policy' and utilizes internal accruals for funding.

Credit Rating & Borrowing

The company did not utilize its borrowing limit during FY 2024-25 due to sufficient internal accruals. The Debt-Equity Ratio remained stable at 0.31 compared to 0.32 in the previous year.

⚙️ Operational Drivers

Raw Materials

Specific raw material names like steel grades are not explicitly listed, but the company processes 'metal forging' materials. Procurement costs are managed through a strategy of passing price increases to customers.

Capacity Expansion

Current installed capacity in MT is not disclosed; however, the company operates a 'state-of-the-art facility' with advanced in-house processes.

Raw Material Costs

Raw material costs are managed via a procurement strategy that encourages customers to share long-term production plans to allow for timely sourcing at competitive prices.

Manufacturing Efficiency

Inventory Turnover Ratio improved by 6.6% from 6.65 to 7.09, indicating better movement of stock and manufacturing efficiency.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

9.8%

Growth Strategy

Growth will be driven by the 'Make in India' initiative and the Production Linked Incentive (PLI) scheme. The company aims to leverage rising demand in the automotive and power sectors and utilize technological advancements in advanced materials.

Products & Services

Open die forgings serving oil and gas, infrastructure, power transmission, mining, and construction industries.

Brand Portfolio

Krishanveer Forge Limited.

Market Expansion

Targeting growth in the international market as a key global supplier and expanding domestic presence in the automotive and power sectors.

🌍 External Factors

Industry Trends

The Indian metal forging market is projected to grow from USD 5.08 billion in 2023 to USD 9.75 billion by 2030 at a CAGR of 9.8%, driven by automotive and construction demand.

Competitive Landscape

The industry is seeing growth in both India and the U.S. (projected USD 2.66 billion by 2032), with competition driven by technological adoption and cost efficiency.

Competitive Moat

Moat is built on a state-of-the-art facility with advanced in-house processes and ISO certification, ensuring high manufacturing standards and safety compliance.

Macro Economic Sensitivity

Highly sensitive to global trade policies and macroeconomic ripple effects from US trade redirection.

Consumer Behavior

Rising demand for forged products in mechanical equipment and aerospace is driving market growth.

Geopolitical Risks

Persistent instability in the Middle East and the Ukraine-Russia conflict, along with May 2025 India-Pakistan tensions, threaten supply chain continuity.

⚖️ Regulatory & Governance

Industry Regulations

Strict compliance with ISO certifications and safety standards; subject to evolving ESG compliance burdens in the manufacturing industry.

Environmental Compliance

The company complies with environmental standards and monitors emissions to meet stricter norms and waste management regulations.

Legal Contingencies

The company reported 6 shareholder complaints during FY 2024-25, all of which were resolved, with 0 pending as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

US tariff policy shifts and geopolitical conflicts (Middle East/Ukraine/Pakistan) could impact margins and supply chain stability by up to significant macroeconomic levels.