💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 7.58% YoY to reach INR 1,076.35 Cr in FY 2024-25, compared to INR 1,000.50 Cr in FY 2023-24. The growth was supported by a volume increase in rolling mill production from 6,46,850 MT to 6,63,197 MT.

Geographic Revenue Split

The company operates across West Bengal, Tamil Nadu, Andhra Pradesh, Jharkhand, and Odisha. It has expanded its presence into new countries to mitigate competition risks, though specific percentage splits per region are not disclosed.

Profitability Margins

Net profit margin declined significantly to 8.38% in FY 2024-25 from 13.29% in FY 2023-24. Post-tax profit stood at INR 90.18 Cr, representing a 32.18% YoY decrease from INR 132.97 Cr.

EBITDA Margin

EBITDA margin stood at 14.97% (INR 161.14 Cr) in FY 2024-25, down from 18.54% (INR 185.54 Cr) in the previous year, marking a 13.15% decrease in core profitability.

Capital Expenditure

The company invested INR 2.07 Cr in Optionally Convertible Debentures of its Wholly Owned Subsidiary, Beekay Utkal Steel Pvt. Ltd., during the year. Total investment in the subsidiary reached INR 19.55 Cr to support a greenfield rolling mill project in Kalinga Nagar, Odisha.

Credit Rating & Borrowing

The company maintains a debt-equity ratio of 0.29 times as of March 31, 2025, slightly up from 0.26 times in 2024. Interest coverage ratio is healthy at 9.36. Finance costs increased by 49.5% to INR 17.21 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include coal and iron ore. High input costs are identified as a primary operational weakness impacting margins.

Import Sources

Sourced primarily from domestic natural resource belts; the company notes extensive availability of coal and iron ore as a core strength.

Key Suppliers

Not specifically named in the documents, but the company relies on the extensive availability of minerals and natural resources.

Capacity Expansion

Rolling mill production reached 6,63,197 MT. New Sponge Iron production capacity of 65,606 MT was utilized in FY 2024-25. A new greenfield project is underway in Kalinga Nagar, Jajpur, Odisha, and expansion of the Cuttack unit was approved in May 2024.

Raw Material Costs

Input costs are described as 'high' in the SWOT analysis, contributing to the 13.15% decline in EBITDA despite a 7.58% increase in revenue.

Manufacturing Efficiency

Workforce efficiency is currently noted as low. However, the company utilizes a unique blend of cross-industry expertise and technological know-how to maintain a competitive edge.

📈 Strategic Growth

Expected Growth Rate

7.6%

Growth Strategy

Growth will be driven by the expansion of the Cuttack unit to meet market demand and the commissioning of a greenfield rolling mill in Kalinga Nagar, Odisha. The company is also onboarding new customers and deepening engagements with existing clients to drive sustained growth.

Products & Services

Steel products from rolling mills, Sponge Iron, and captive Power generation (WHRB).

Brand Portfolio

Beekay Steel, Inspired by Steel.

New Products/Services

Sponge Iron (65,606 MT produced) and WHRB Power (1.28 Cr Kwh) are new operational contributors in FY 2024-25.

Market Expansion

Targeting expansion in Odisha through Beekay Utkal Steel Pvt. Ltd. and increasing export presence to address differential tariffs (e.g., US tariffs on China vs India).

Strategic Alliances

Associate company AKC Steel Industries Ltd reported revenue of INR 10.31 Cr and profit of INR 4.11 Cr.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward rapid urbanization and increased demand for consumer durables. India has a competitive advantage in the US market due to lower tariffs (14%) compared to China (145%) on certain steel-related exports.

Competitive Landscape

Faces competition from new market entrants; countered by B2B operational variations and geographic diversification.

Competitive Moat

Moat is built on access to low-cost natural resources (coal/iron ore) and low per-unit labor costs. Sustainability is supported by a 75% retention rate of senior management and 50% of staff having over 5 years of tenure.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending; the Union Budget 2025-26 allocation of INR 11.21 Lakh Cr for capital expenditure is a primary growth driver.

Consumer Behavior

Increasing demand for affordable housing and consumer durables is shifting demand toward specialized steel sections.

Geopolitical Risks

Global economic slowdown and slow growth in infrastructure development are identified as major threats.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the New Industrial Policy of the Govt. of Odisha for its Kalinga Nagar project; requires various statutory permissions for greenfield undertakings.

Environmental Compliance

CSR expenditure of INR 3.36 Cr was incurred, exceeding the obligatory requirement by INR 54,723.

Taxation Policy Impact

The company reported a profit before taxation but specific tax rate percentages are not detailed in the snippets.

Legal Contingencies

The Secretarial Audit Report for FY 2024-25 by Santosh Kumar Tibrewalla did not contain any qualifications, reservations, or adverse remarks.

⚠️ Risk Analysis

Key Uncertainties

Funding risk for capital expenditures could hinder performance if the company cannot maintain cost competitiveness. Potential impact is linked to the 0.29 debt-equity ratio.

Geographic Concentration Risk

Operations are concentrated in 5 Indian states, with a significant new focus on the Odisha industrial belt.

Third Party Dependencies

Dependency on contract labor is noted within the 2,500 total employee count.

Technology Obsolescence Risk

The company is addressing technology needs through 'technological know-how' and domain knowledge to stay ahead in the steel industry.

Credit & Counterparty Risk

Receivables are hedged to manage currency risk; internal financial controls are deemed 'adequate and robust' by the Audit Committee.