💰 Financial Performance

Revenue Growth by Segment

The company has shifted its primary revenue source from real estate to petroleum trading. Specific segment growth percentages are not disclosed, but trading of petroleum products now constitutes the main turnover. Related party sales to Haresh Agencies (Firm) alone accounted for INR 80.38 Cr (8,038.88 Lakhs) during the period.

Geographic Revenue Split

Not disclosed in available documents, though operations are centered in Mumbai, Maharashtra.

Profitability Margins

Profit margins are under pressure due to the 'lowest bidder' tender system used for contracts, which reduces margins in percentage terms. The company is actively pursuing 'margin enhancement' and 'cost control' to mitigate this.

Capital Expenditure

The company notes that capital expansion involves 'huge capital expenditure' to determine future earnings, particularly in new business arenas like petroleum trading and waste management, though specific INR Cr figures for the current year are not provided.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company emphasizes that maintaining good relations with banks and financial institutions is critical for growth.

⚙️ Operational Drivers

Raw Materials

Petroleum products (for trading), land (for reality development), and medical bi-products (for waste management). Petroleum products represent the largest portion of procurement costs given the shift in business focus.

Key Suppliers

Sanjay Builders & Developers (Partnership firm) is a key supplier with purchases totaling INR 10.40 Cr (1,040.55 Lakhs). Sanjeev Service Station provides diesel and lube oil (INR 0.89 Lakhs).

Capacity Expansion

The company is expanding by adopting new technologies to enhance production organically. It has recently ventured into petroleum trading and medical waste management to diversify from the slowing real estate sector.

Raw Material Costs

Purchases from related parties for products totaled approximately INR 10.40 Cr. The company uses a competitive bidding process to manage procurement costs.

Logistics & Distribution

Transportation charges paid to related parties (Sanjay Makhija, Haresh Makhija, and Haresh Agencies) totaled approximately INR 12.85 Lakhs. Transportation charges received from clients/partners totaled INR 64.06 Lakhs.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved through diversification into petroleum product trading and medical waste management to offset real estate slowdowns. The strategy includes adopting new technologies for organic growth, enhancing margins through specific global support projects, and leveraging marketing arrangements/collaborations.

Products & Services

Petroleum products (Petrol, Diesel, Lube Oil), Real Estate Development (Residential/Commercial properties), and Medical Waste Management services.

Brand Portfolio

Sanmit Infra Limited.

New Products/Services

Medical waste management activities (medical bi-products) and petroleum product trading are the primary new revenue streams.

Market Expansion

The company is targeting infrastructure-related demand, believing that growth in the Indian infrastructure sector will bring additional demand for its business modules.

Strategic Alliances

The company is seeking new opportunities through collaborations and marketing arrangements, though specific partner names for new ventures are not listed.

🌍 External Factors

Industry Trends

The real estate industry is growing due to favorable demographics and FDI relaxation, but is currently facing a 'slowdown in market conditions.' The petroleum trading sector is being used as a hedge against this volatility.

Competitive Landscape

Faces competition from new players entering the market and existing players expanding due to market availability.

Competitive Moat

The company relies on its 'four core pillars' (Compassion, Transparency, Respect, Ethics) and its ability to attract/retain skilled technical manpower (38 permanent employees) as its primary competitive advantage.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and interest rates. Rising interest rates directly pressure the real estate sector's viability.

Consumer Behavior

Shifts in shopping habits and the growing number of retail malls are stimulating demand for modern offices and shopping centers.

Geopolitical Risks

Global turmoil is cited as a factor creating pressure on the Indian real estate sector and affecting petroleum supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, SEBI (LODR) Regulations 2015, and FEMA. The company must comply with tender-based procurement rules for certain contracts.

Environmental Compliance

The company has entered the waste management sector, specifically for medical bi-products, which requires adherence to environmental and health regulations.

Taxation Policy Impact

The company notes that changes in government taxation policies are factors over which it has no direct control but which significantly impact operations.

Legal Contingencies

BSE initially levied a fine of INR 1,54,42,622 for non-compliance with Regulation 23(9) and another fine of INR 88,500 for Regulation 17(1). Both fines were subsequently waived by BSE in April 2025 after the company filed appeals and waiver applications.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of economic cycles on the real estate market and the volatility of petroleum prices in the trading segment.

Geographic Concentration Risk

Operations appear concentrated in the Mumbai region, making the company sensitive to local land availability and Maharashtra-specific regulations.

Third Party Dependencies

Significant dependency on related parties for both sales (Haresh Agencies) and purchases (Sanjay Builders), representing a high concentration of related-party transactions.

Technology Obsolescence Risk

The company is mitigating technology risks by 'constantly adopting new technologies' to enhance production and upgrading internal financial control systems.

Credit & Counterparty Risk

The company monitors its relationship with market intermediaries like banks to ensure liquidity and credit availability for capital-intensive projects.