CMICABLES - CMI

📊 NSE: CMICABLES 🏢 Cables - Power 📅 Last Updated: 12/13/2025 21:06

💰 Financial Performance

Revenue Growth by Segment

Total revenue for FY25 was INR 58.08 Cr. Sales of products grew by 97.6% YoY, increasing from INR 29.08 Cr in FY24 to INR 57.46 Cr in FY25. However, this remains significantly below the FY20 revenue of INR 511.24 Cr, representing an 88.6% decline over five years.

Profitability Margins

Net profit margin for FY25 was -18.99%, an improvement from -27.98% in FY24. Historically, the company maintained a net margin of 7.2% in Q3 Dec 2015. The current negative margins are driven by higher net losses of INR 11.03 Cr in FY25 compared to INR 8.33 Cr in FY24.

EBITDA Margin

EBITDA margin was 14.5% in Q3 Dec 2015 (INR 9.71 Cr). However, the company reported a net operating loss of INR 20.60 Cr in FY21 and continued operating losses in FY25, evidenced by a negative interest coverage ratio of -11.79x.

Credit Rating & Borrowing

Liquidity is rated as 'Poor' due to a squeeze from lockdown impacts. The company was granted a moratorium on interest and installments by lenders and secured ad-hoc limits of INR 7.50 Cr. Interest coverage is severely stressed at -11.79x.

⚙️ Operational Drivers

Raw Materials

Copper, Aluminum, and PVC/Polymers are the primary raw materials for cable manufacturing; specific cost percentages for each are not disclosed.

Manufacturing Efficiency

Inventory turnover ratio (x) improved to 5.46x in FY25 from 2.94x in FY24, an 85.49% increase, indicating improved movement of stock despite insolvency proceedings.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims for recovery through the Corporate Insolvency Resolution Process (CIRP) and by leveraging its niche product approvals from Indian Railways and PSUs, which act as high entry barriers (1-4 year qualification period).

Products & Services

Niche cable products supplied to Indian Railways, State Electricity Boards (SEBs), BHEL, NTPC, and oil refinery companies.

Brand Portfolio

CMI

🌍 External Factors

Industry Trends

The industry is shifting toward niche cable products with stringent pre-qualification criteria for government projects, creating a 1 to 4-year entry barrier for new players.

Competitive Landscape

The landscape is characterized by high competition from organized and unorganized players, which limits the company's ability to pass on cost increases.

Competitive Moat

Moat is sustainable due to the long lead time (1-4 years) required for new entrants to gain approvals from key government bodies like Indian Railways and NTPC.

Macro Economic Sensitivity

High sensitivity to economic lockdowns and disruptions, which led to a net loss of INR 194.60 Cr in FY21 compared to a profit of INR 3.70 Cr in FY20.

Consumer Behavior

B2B demand is driven by government infrastructure spending and PSU procurement cycles.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by stringent pre-qualification criteria and quality standards set by Indian Railways, SEBs, BHEL, and NTPC.

Legal Contingencies

The company is under the Corporate Insolvency Resolution Process (CIRP) as of November 2025. Powers of the board are suspended, and Deepak Maini has been appointed as the Resolution Professional.