💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 720.24% YoY, reaching INR 21.02 Cr in FY 2024-25 compared to INR 2.56 Cr in FY 2023-24. The company is primarily engaged in trading activities, but is transitioning to manufacturing.

Profitability Margins

Net profit margin improved significantly to 2.42% in FY 2024-25 from a negative margin of (67.81%) in FY 2023-24. Return on Equity (ROE) turned positive at 0.57% compared to (26.55%) in the previous year.

EBITDA Margin

EBITDA margin was 12.89% in FY 2024-25, a sharp decline from 62.32% in FY 2023-24, despite the substantial increase in absolute revenue.

Capital Expenditure

Not disclosed in available documents; however, the company amended its main object clause on May 12, 2025, to diversify into manufacturing, which will require future capital expenditure.

Credit Rating & Borrowing

The company reported no interest expense for FY 2024-25, indicating zero or negligible interest-bearing debt. The Interest/Debt Service Coverage Ratio was (100%) due to the lack of interest costs.

⚙️ Operational Drivers

Raw Materials

Steel scrap, carbon steel, alloy steel, and non-ferrous metals for the newly approved manufacturing operations.

Capacity Expansion

The company is transitioning from trading to manufacturing metal fabrications, machine tools, turbines, and furnaces. Current installed capacity is not disclosed.

Raw Material Costs

Not disclosed in available documents as the manufacturing shift is subsequent to the FY 2024-25 financial results.

Manufacturing Efficiency

Not disclosed in available documents as manufacturing operations are in the setup phase.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is diversifying into manufacturing metal fabrications, machine tools, turbines, furnaces, and steel-based components. This strategic shift, approved on May 12, 2025, aims to leverage initiatives like 'Make in India' and the 'National Steel Policy' to move away from the volatility of trading-based operations.

Products & Services

Metal fabrications, machine tools, turbines, engines, furnaces, castings, forgings, grinding media, pipes, and tubes.

New Products/Services

New manufacturing lines for turbines, furnaces, and forged components are expected to contribute to future revenue following the object clause amendment.

Market Expansion

The company is targeting the industrial manufacturing ecosystem to offer more stable growth avenues compared to its previous trading focus.

🌍 External Factors

Industry Trends

The industry is shifting towards domestic manufacturing supported by policy initiatives like the National Steel Policy. The company is positioning itself to move from trading to manufacturing to capture value in the evolving industrial ecosystem.

Competitive Moat

The company is attempting to build a moat by transitioning into specialized manufacturing (turbines, machine tools) which offers higher barriers to entry and more scalability than pure commodity trading.

Macro Economic Sensitivity

Highly sensitive to global economic conditions, inflationary pressures, and shifts in monetary policy which influence commodity and capital markets.

Geopolitical Risks

Geopolitical tensions are cited as a primary cause for increased market fluctuations and declining profitability in the commodity segment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, Ind AS, and SEBI (LODR) Regulations. Future manufacturing will be subject to industrial standards and pollution control norms.

Environmental Compliance

Not disclosed in available documents, though future foundry and steel melting operations will require strict adherence to environmental norms.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful execution of the transition from a trading-based model to a manufacturing-based model, alongside commodity price volatility risks.

Technology Obsolescence Risk

The company recognizes technology and products are fairly standardized but relies on human resource talent to maintain a competitive edge.

Credit & Counterparty Risk

Trade receivables turnover ratio improved to 6.49 in FY 2024-25 from 2.00 in FY 2023-24, indicating improved collection efficiency.