💰 Financial Performance

Revenue Growth by Segment

Total turnover grew 13.92% YoY from INR 126.41 Cr in FY 2023-24 to INR 144.01 Cr in FY 2024-25. The company operates in a single business segment: Manufacturing of Rubber Tyres and Tubes.

Geographic Revenue Split

Not disclosed in absolute figures, but the company maintains a pan-India supply chain with outlets, branch organizations, and fabricating production lines throughout the country.

Profitability Margins

Net Profit Ratio declined by 5.29% YoY, from 3.77% to 3.57%. Return on Equity (ROE) decreased by 7.29% YoY to 16.62%, and Return on Capital Employed (ROCE) fell by 5.63% YoY to 21.97%.

EBITDA Margin

Not explicitly disclosed; however, the Net Profit Ratio is 3.57% for FY 2024-25, down from 3.77% in the previous year.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company maintains high production capability with a limit of over 5 Lakh tyres and over 50 Lakh tubes annually.

Credit Rating & Borrowing

Debt Equity Ratio increased slightly by 3.48% to 0.54. The Debt Service Coverage Ratio improved significantly by 29.20% to 7.55 times.

⚙️ Operational Drivers

Raw Materials

Synthetic rubber, carbon black, and chemical solvents.

Import Sources

Not specifically disclosed, though the company notes that Indian rubber production is generally lower than demand, necessitating external sourcing.

Capacity Expansion

Current installed capacity is over 5 Lakh tyres (tubeless and tube type) and over 50 Lakh tubes per year. Planned expansion figures in INR are not disclosed.

Raw Material Costs

Raw material costs are described as extremely unpredictable and a major challenge; specific percentage of revenue is not disclosed.

Manufacturing Efficiency

Inventory Turnover Ratio decreased by 8.61% YoY to 6.35 times, while Trade Receivables Turnover Ratio improved by 5.28% to 8.62 times.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but the company operates an extensive Indian sales network.

📈 Strategic Growth

Expected Growth Rate

6.6%

Growth Strategy

The company aims to achieve growth by focusing on the replacement market, which contributes ~70% of industry revenue, and leveraging its high production capacity of >5 Lakh tyres. Strategy includes digitalization to optimize plant availability, reducing operating costs, and expanding its diversified portfolio of 2 and 3 wheeler variants.

Products & Services

Rubber Tyres (tubeless and tube type) and Rubber Tubes for 2 and 3 Wheelers.

Brand Portfolio

Dolfin Rubbers Limited.

New Products/Services

Continuous development of variants and models for the 2 and 3 Wheeler market; specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Targeting growth in both Original Equipment (OE) and replacement segments within India's growing economy.

Market Share & Ranking

The top 10 players in the Indian tyre industry hold 90-95% of the total market; Dolfin Rubbers is a specialized player in the 2/3 wheeler segment.

🌍 External Factors

Industry Trends

The industry is shifting toward digitalization, smart manufacturing, and electric vehicles. The Indian tyre market is worth over USD 9 billion, with the replacement segment contributing 70% of total revenues.

Competitive Landscape

Intense competition from major players like MRF, Apollo Tyres, and JK Tyres, as well as local regional players and Chinese imports.

Competitive Moat

Sustainable advantages include a strong brand image in the replacement market, a high production capacity of 50 Lakh+ tubes, and an extensive pan-India distribution network.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth (projected at 6.6% for FY25) and automotive industry production, which reached 5.8 million vehicles in 2024.

Consumer Behavior

Increasing consumer awareness regarding tyre safety and maintenance is driving demand in the replacement segment.

Geopolitical Risks

Cheaper imported Chinese tyre goods pose a significant threat to domestic profitability and market competition.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013, SEBI (LODR) Regulations, and mandatory Accounting Standards.

Environmental Compliance

The company is ISO 14001 certified for environmental management systems.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (synthetic rubber, carbon black) and fluctuations in domestic rubber production relative to demand.

Geographic Concentration Risk

Operations are spread throughout India; specific regional revenue concentration percentages are not provided.

Third Party Dependencies

Dependency on raw material suppliers for synthetic rubber and carbon black.

Technology Obsolescence Risk

The company identifies the need for digitalization and new business models to optimize plant availability and time-to-market.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio is 8.62 times, indicating a 5.28% improvement in collection efficiency YoY.