💰 Financial Performance

Revenue Growth by Segment

Total standalone revenue grew 6.32% YoY to INR 7,530.01 Lakhs in FY 2024-25 from INR 7,081.99 Lakhs. Growth was driven by increased demand in the capital goods sector, specifically for process equipment in oil, gas, and power industries.

Geographic Revenue Split

Not explicitly split by percentage, but the company serves major Indian PSUs (ONGC, GAIL, BPCL) and international clients such as Texas Southpiller-USA, indicating a mix of domestic and export revenue streams.

Profitability Margins

Operating Profit Margin improved to 22.32% in FY 2024-25 from 18.21% in FY 2023-24 (a 22.60% increase). Net Profit Margin rose to 14.16% from 10.01% (a 41.48% increase), driven by better resource utilization and operational efficiencies.

EBITDA Margin

EBITDA (Profit before Depreciation, Interest & Tax) was INR 1,358.78 Lakhs in FY 2024-25, representing an 18.04% margin, compared to INR 950.44 Lakhs (13.42% margin) in the previous year, a YoY growth of 42.96%.

Capital Expenditure

The company added a new manufacturing bay to enhance capacity and modernized machinery. Property, Plant & Equipment stood at INR 1,145.49 Lakhs as of March 31, 2024, with an additional INR 28.48 Lakhs in intangible assets.

Credit Rating & Borrowing

Debt-Equity Ratio improved significantly to 0.20 in FY 2024-25 from 0.45 in FY 2023-24, a 55.54% reduction. Finance costs were INR 133.09 Lakhs in FY 2023-24, showing stable borrowing costs despite increased operations.

⚙️ Operational Drivers

Raw Materials

Steel and non-ferrous materials are the primary inputs, accounting for INR 3,854.34 Lakhs (54.4% of total revenue) in FY 2023-24.

Import Sources

Not specifically disclosed, but the company maintains long-term relationships with several suppliers to ensure quality and timely delivery.

Key Suppliers

Not disclosed by name, but the company emphasizes long-term contracts and regular analysis of procurement policies to identify bottlenecks.

Capacity Expansion

The company recently added an additional manufacturing bay to enhance production capacity for process equipment. Current fixed assets are valued at INR 11.45 Cr.

Raw Material Costs

Cost of materials consumed was INR 3,854.34 Lakhs in FY 2023-24, up 27.27% from INR 3,028.51 Lakhs in FY 2022-23, reflecting higher production volumes.

Manufacturing Efficiency

The company focuses on 'Optimal Utilization of Resources' by identifying bottlenecks in manufacturing processes to improve efficiency.

Logistics & Distribution

Not disclosed as a separate percentage, but the company provides 'Consignment packaging' as per customer specifications, impacting distribution costs.

📈 Strategic Growth

Expected Growth Rate

5.8%

Growth Strategy

Growth will be achieved through strategic market expansion, including the addition of a new manufacturing bay to increase capacity. The company is targeting the Indian heat exchanger market (5.8% CAGR) and pressure vessel market (4.5% CAGR) by leveraging its ASME 'U' & 'U2' certifications and long-term relationships with PSUs like GAIL and ONGC.

Products & Services

Pressure vessels, Air cooled heat exchangers, Shell & tube heat exchangers, Storage tanks, Pressure receivers, Chimneys, Heavy structural items, Skids, and Base plates.

Brand Portfolio

Loyal Equipments Limited; Loyal Engineer.

New Products/Services

The company specializes in customized product offerings, designing equipment specifically to client specifications for the oil, gas, and fertilizer sectors.

Market Expansion

Expansion is focused on the capital goods industry, specifically targeting the projected USD 62.7 billion Indian pressure vessel market by 2028.

Market Share & Ranking

Not disclosed, but the company is a known reputed SMERA-certified player in the Indian process equipment industry.

Strategic Alliances

The company has long-term working relationships with EIL, GSPC, GAIL, ONGC, Linde, and Siemens Energy.

🌍 External Factors

Industry Trends

The Indian pressure vessel market is growing at 4.5% CAGR, while the heat exchanger market is growing at 5.8% CAGR, driven by rising energy demand and industrial activities.

Competitive Landscape

Competition arises from new market players, banks, and multilateral agencies, as well as volatile market conditions affecting capital costs.

Competitive Moat

Durable advantages include ASME 'U' & 'U2' Stamp holdings, SMERA certification, and a long-standing track record with government organizations (EIL, ONGC), which act as high entry barriers.

Macro Economic Sensitivity

Highly sensitive to global economic shocks and government policy shifts; US tariffs are noted as a significant risk to the 2025 outlook.

Consumer Behavior

Industrial demand is shifting toward modular packages and auxiliary skids in the oil and gas sectors to improve site installation efficiency.

Geopolitical Risks

Trade barriers and near-universal US tariffs are identified as major risks that could reorder global policy priorities and impact growth.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by ASME standards, SEBI Listing Regulations, and the Companies Act 2013. Compliance with quality standards is monitored by third-party agencies like Lloyds and TUV.

Environmental Compliance

The company monitors 'material effluent or pollution problems' as part of its corporate governance and internal audit scope.

Taxation Policy Impact

Tax expenses for FY 2023-24 were INR 241.69 Lakhs, compared to INR 27.60 Lakhs in FY 2022-23, reflecting higher taxable profits.

Legal Contingencies

The Board reviews 'Show cause, demand, prosecution notices and penalty notices' that are materially important. Specific case values in INR are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Uncertain business environment, fluctuation in Rupee, and likely increase in cost of capital due to volatile market conditions.

Geographic Concentration Risk

While serving international clients, there is a significant concentration in the Indian PSU sector (Oil/Gas/Fertilizers).

Third Party Dependencies

Dependency on third-party inspection agencies (Lloyds, BV, SGS, TUV) for product certification and quality compliance.

Technology Obsolescence Risk

Risk is mitigated by continuous modernization of machinery and adherence to international engineering agreements like the Washington Accord (WA).

Credit & Counterparty Risk

Debtor Turnover Ratio slowed to 4.28 times in FY 2024-25 from 5.77 times (a 25.80% change), indicating a slight increase in the credit cycle or collection period.