💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment: Iron and Steel. Operating income was INR 1,147.69 Cr in FY15, representing a 4.24% decrease from INR 1,198.53 Cr in FY14.

Geographic Revenue Split

Not disclosed in available documents, though the company is identified as a significant manufacturer in Eastern India with operations in West Bengal.

Profitability Margins

Profitability has severely declined due to increasing losses. The Net Profit Ratio worsened from (7.49%) in FY22 to (12.76%) in FY23, a negative change of 70.32%. Net loss in FY15 was INR 193.27 Cr compared to INR 76.52 Cr in FY14.

EBITDA Margin

Not explicitly disclosed, but Return on Capital Employed (ROCE) plummeted from (13.22%) in FY22 to (44.39%) in FY23, a negative change of 235.87% due to mounting operational losses.

Credit Rating & Borrowing

Credit ratings were downgraded to [ICRA]D (Default) from [ICRA]C+ and [ICRA]A4. Total rated debt is approximately INR 1,280.03 Cr, including Term Loans of INR 414.03 Cr and Cash Credit of INR 333.62 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include iron ore, coal, and ferro alloys. Price variability in these materials directly impacts margins and cash flows.

Capacity Expansion

The company operates an integrated iron and steel plant at Jorehira, Bankura, West Bengal. Specific current capacity and expansion plans are not disclosed.

Raw Material Costs

Raw material costs are a critical driver of margins; however, specific cost percentages are not disclosed. The company faces risks from global supply chain disruptions and inflation.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code. Growth is contingent on the successful implementation of a resolution plan by the Committee of Creditors (CoC), which held its 13th meeting on February 21, 2025. The company is also looking toward government stimulus packages for the steel sector to revive operations to pre-pandemic levels.

Products & Services

Sponge iron, iron ore pellets, steel billets, TMT bars, and wire rods.

Brand Portfolio

Ankit

Market Share & Ranking

Identified as one of the significant manufacturers of Iron and Steel in Eastern India.

Strategic Alliances

The company was previously under a Strategic Debt Restructuring (SDR) programme with its bankers.

🌍 External Factors

Industry Trends

Steel demand was predicted to increase by 1% in 2023. However, the industry faces a complex regulatory framework and a surge in imports, with October 2022 imports up 78% YoY.

Competitive Landscape

Faces competition from both domestic manufacturers in Eastern India and a significant rise in finished steel imports.

Competitive Moat

The company's moat is based on its integrated manufacturing facility in West Bengal and the established 'Ankit' brand for TMT bars, though this is currently offset by financial distress.

Macro Economic Sensitivity

Highly sensitive to global inflation and interest rate hikes by central banks, which exert pressure on emerging market economies and increase borrowing costs.

Consumer Behavior

Demand is linked to the expected slowdown in inflation and the potential end of credit tightening by central banks.

Geopolitical Risks

The invasion of Ukraine has contributed to economic fragmentation and severed commercial ties with Russia, threatening post-pandemic recovery and rules-based trade frameworks.

⚖️ Regulatory & Governance

Industry Regulations

The steel sector is subject to an extensive and evolving regulatory framework; any deviation in compliance can adversely impact operating performance and reputation.

Legal Contingencies

The company is undergoing the Corporate Insolvency Resolution Process (CIRP). It has defaulted on multiple debt instruments including term loans (INR 414.03 Cr) and working capital term loans (INR 223.21 Cr).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the outcome of the CIRP and whether a viable resolution plan will be approved by the CoC. Financial defaults and increasing losses (Net Profit Ratio down 70.32% YoY) pose existential risks.

Geographic Concentration Risk

Operations are concentrated at a single integrated plant in Bankura, West Bengal.

Third Party Dependencies

Dependency on lenders for debt restructuring and on the CoC for the insolvency resolution process.

Technology Obsolescence Risk

The company uses an ERP system to support operations and authorization protocols, but specific technology risks are not detailed.

Credit & Counterparty Risk

The company has defaulted on its financial commitments to lenders, leading to a default credit rating ([ICRA]D).