💰 Financial Performance

Revenue Growth by Segment

The company reported a 26.17% increase in total revenue, reaching Rs. 386.22 crore in FY 2024-25 compared to Rs. 306.11 crore in FY 2023-24. Revenue in H1FY25 grew 38.5% to Rs. 189.50 crore from Rs. 136.84 crore in H1FY24, driven by higher capacity utilization following expansion.

Geographic Revenue Split

The company supplies high-quality products globally, maintaining a presence in both domestic and international markets. Export opportunities are actively explored as Indian starch remains competitively priced compared to global rates, though specific regional percentage splits were not disclosed.

Profitability Margins

Net profit for FY 2024-25 surged to Rs. 7.53 crore. Operating profit margins improved to 6.76% in FY 2024 from 5.89% in FY 2023. However, H1FY25 operating margins were subdued at 4.02% compared to 5.87% in H1FY24 due to increased material costs, though Q2FY25 showed a Q-o-Q improvement to 4.87% from 3.00% in Q1FY25.

EBITDA Margin

Operating profit margin stood at 6.76% in FY 2024, a YoY improvement of 87 basis points from 5.89% in FY 2023. This core profitability was supported by an improved product mix and operational efficiencies despite raw material price volatility.

Capital Expenditure

The company undertook capital expenditure to add liquid glucose to its product profile and increase existing starch capacity. While the capex was originally expected to be completed by February 2024, it was still undergoing as of August 2024, impacting short-term capacity utilization in FY 2024.

Credit Rating & Borrowing

Acuité reaffirmed a long-term rating of 'ACUITE BBB' with a 'Stable' outlook on Rs. 140.00 crore of bank facilities. The rating reflects experienced management and a long track record, balanced against working capital intensity and raw material price susceptibility.

⚙️ Operational Drivers

Raw Materials

Maize is the primary raw material, representing the largest portion of the cost structure. Prices are highly volatile due to agricultural factors, monsoon dependency, and competition from bio-energy (ethanol) demands.

Import Sources

Maize is primarily sourced domestically from Indian agricultural markets, though the company monitors global rates and the impact of international conflicts like the Russia-Ukraine war on global maize pricing.

Capacity Expansion

The company is expanding its starch capacity and adding a new liquid glucose line. Capacity utilization was subdued in FY 2024 to facilitate this expansion but increased in H1FY25, leading to a 38.5% revenue jump in that period.

Raw Material Costs

Material costs increased in H1FY25, causing operating margins to drop to 4.02% from 5.87% YoY. Procurement strategies include maintaining adequate inventories and collaborating with suppliers to optimize costs and enhance application flexibility.

Manufacturing Efficiency

The company is ISO 9001:2015 certified. Efficiency is driven by investments in process optimization and quality improvement, which helped achieve a 26.17% revenue increase in FY 2024-25.

📈 Strategic Growth

Expected Growth Rate

6.2%

Growth Strategy

Growth will be achieved by shifting from native starch to high-value derivatives like liquid glucose, dextrose monohydrate, and modified starches. The company is also expanding into new markets (food, beverages, animal feeds) and capitalizing on export opportunities where Indian pricing is globally competitive.

Products & Services

Maize Starch, Maize Gluten, Dextrose Anhydrous, Dextrose Monohydrate (edible), Modified Starch, Liquid Glucose, and Poultry Feed.

Brand Portfolio

Tirupati Starch & Chemicals Limited.

New Products/Services

Liquid glucose is the primary new product addition, intended to diversify the portfolio into higher-margin value-added derivatives.

Market Expansion

The company is actively exploring global business opportunities and expanding its current domestic operations to meet the growth strategies of its large customer base.

Market Share & Ranking

The domestic starch market is valued at Rs. 43,000 crore; with Rs. 386.22 crore in revenue, the company holds a specialized position in a fragmented industry.

🌍 External Factors

Industry Trends

The industry is evolving from native starch to value-added derivatives. The market is expected to grow at a CAGR of 6.2% over the next five years, driven by demand from pharma, food, and textile sectors.

Competitive Landscape

The industry is highly fragmented with both organized and unorganized manufacturers, leading to intense competition and limited pricing power.

Competitive Moat

The company's moat is built on a 38-year track record, experienced management (promoters with 30-40 years experience), and ISO 9001:2015 certified integrated operations, which are sustainable due to long-standing customer and supplier relationships.

Macro Economic Sensitivity

The company's 26.17% revenue growth was supported by a robust 7.2% Indian GDP growth in FY 2024-25, particularly in the food processing and infrastructure sectors.

Consumer Behavior

There is a clear shift toward end-user demand for cleaner labeling, better functional benefits, and sustainable alternatives like corn starch-based bioplastics.

Geopolitical Risks

The Russia-Ukraine conflict has caused a significant rise in global maize prices, requiring the company to implement internal cost-management measures and explore alternative inputs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by government mandates on Minimum Support Price (MSP) for maize, import/export restrictions, and environmental policies related to agro-based industries.

Environmental Compliance

The company monitors environmental policies and regulations, particularly those impacting agricultural commodities and production locations.

Taxation Policy Impact

The company follows Indian Accounting Standards (Ind AS) and relevant provisions of the Companies Act, 2013.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of maize prices (agricultural risk) and the potential impact of further delays in the completion of the liquid glucose capex project.

Geographic Concentration Risk

Manufacturing is based in Indore, Madhya Pradesh, with a global distribution reach.

Third Party Dependencies

High dependency on the agricultural sector for maize supply, which is susceptible to production uncertainties and price fluctuations.

Technology Obsolescence Risk

The company mitigates technology risk through continuous investment in process optimization and quality improvement to remain aligned with industry trends.

Credit & Counterparty Risk

Receivables quality is managed within a working capital cycle of 117 GCA days; the company maintains healthy relationships with a long-standing customer base.