💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew by 6.32% YoY to INR 82.61 Cr (INR 8,261.09 Lacs) from INR 77.70 Cr. Consolidated revenue grew by 4.61% YoY to INR 91.52 Cr (INR 9,151.55 Lacs). The business operates in two segments: manufacture of engraved copper rollers and energy generation through wind mills.

Profitability Margins

Profitability saw a significant decline; Standalone Operating Profit Margin dropped from 19.08% to 9.39% (a 50.78% decrease). Net Profit Margin fell from 14.43% to 5.09% (a 64.73% decrease). This margin compression was driven by a decrease in net profit after taxes and lower earnings before interest and taxes.

EBITDA Margin

Standalone EBITDA was INR 10.50 Cr (INR 1,049.58 Lacs), representing a 12.7% margin, which is a 45.28% decrease from the previous year's EBITDA of INR 19.18 Cr (24.7% margin). Consolidated EBITDA fell 48.42% to INR 10.33 Cr.

Capital Expenditure

Historical capital expenditure for FY2024-25 was INR 3.56 Cr (INR 355.97 Lacs), a significant reduction from the INR 8.76 Cr spent in FY2023-24. Capital work-in-progress was reduced to zero from INR 1.07 Cr.

Credit Rating & Borrowing

The company repaid its entire interest and current borrowings, which stood at INR 0 as of March 31, 2025, compared to INR 2.62 Cr in the previous year. Interest coverage ratio is reported at 19.22.

⚙️ Operational Drivers

Raw Materials

Copper and steel/base metals are the primary raw materials for the manufacture of engraved copper rollers. Specific percentage of total cost is not disclosed.

Raw Material Costs

Not disclosed in available documents, though the company notes that changes in raw material prices are a material factor influencing operations.

📈 Strategic Growth

Growth Strategy

The company focuses on its two core segments: engraved copper rollers and wind energy. Growth is supported by a stable global GDP expansion of 3.3% and a shift toward monetary easing which may enhance private sector investment in industrial output.

Products & Services

Engraved copper rollers for the printing and packaging industry and energy generation via wind mills.

Brand Portfolio

Shilp Gravures Limited.

Strategic Alliances

The company has an investment in a subsidiary valued at INR 4.48 Cr.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward monetary easing by central banks, which is expected to enhance liquidity and support a recovery in private sector investment by CY 2025.

Competitive Moat

The company's moat is built on its specialized manufacturing of engraved copper rollers and its integrated energy generation (wind mills), though the 50% drop in operating margins suggests competitive or cost pressures.

Macro Economic Sensitivity

The company is sensitive to global GDP (3.3% growth in 2024) and headline inflation (5.8% in 2024). Industrial output resilience is critical for the demand for engraved rollers.

Geopolitical Risks

Geopolitical tensions and trade disruptions are cited as persistent headwinds that could influence market conditions and supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changes in government regulations, tax laws, and the Companies Act, 2013. The company maintains cost records as per Section 148(1).

Taxation Policy Impact

The company paid direct taxes (net) of INR 3.60 Lacs in FY25, compared to INR 288.51 Lacs in FY24. Deferred tax liabilities (net) stand at INR 5.03 Cr.

Legal Contingencies

The company has pending litigations as of March 31, 2025, the impact of which is disclosed in Note 41 of the financial statements. Specific INR values for these cases are not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the 93% decline in Return on Networth (from 11.45% to 4.18%) and the potential for material misstatements due to inherent limitations in internal controls.

Technology Obsolescence Risk

The company implemented an audit trail (edit log) facility in its accounting software for FY2024-25 to comply with statutory requirements, addressing previous digital record-keeping gaps.

Credit & Counterparty Risk

Debtors turnover is 54.10 days. Trade receivables increased by INR 1.09 Cr during the year, and the company made a provision for expected credit loss of INR 9.84 Lacs.