EXCELLENT - Excellent Wires

📊 NSE: EXCELLENT 🏢 Steel - Medium / Small 📅 Last Updated: 12/13/2025 22:01

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 45.63% YoY to INR 22.44 Cr (INR 2,243.90 Lakhs) from INR 15.41 Cr in the previous year. Segment-specific growth percentages were not disclosed.

Profitability Margins

Net Profit Margin remained stable at approximately 5.00% (INR 1.12 Cr profit on INR 22.44 Cr revenue), showing a slight decrease of 5.71% in margin efficiency compared to the previous year. Profit before tax stood at INR 1.46 Cr.

EBITDA Margin

EBITDA margin is approximately 8.95% (INR 2.01 Cr), calculated from a Profit Before Tax of INR 1.46 Cr plus Finance Costs of INR 0.09 Cr and Depreciation of INR 0.46 Cr. EBIT improved significantly, contributing to a 238.74% increase in the Interest Coverage Ratio.

Capital Expenditure

The company invested INR 2.79 Cr (INR 279.20 Lakhs) in the purchase of fixed assets during the financial year 2024-25 to support operational scaling.

Credit Rating & Borrowing

The company eliminated its debt during the year, resulting in a Debt-Equity Ratio of 0.00 (a 100% reduction from 0.56). Interest Coverage Ratio improved by 238.74% to 17.64 due to reduced interest expenses and higher EBIT.

⚙️ Operational Drivers

Raw Materials

Raw materials for wire manufacturing and packaging (such as steel and polymers) represent the largest cost component at 86.73% of total revenue, amounting to INR 19.46 Cr (INR 1,946.23 Lakhs).

Capacity Expansion

Current installed capacity is not specified in units; however, the company added INR 2.79 Cr to its fixed asset base in FY 2024-25 to expand its manufacturing footprint.

Raw Material Costs

Raw material costs totaled INR 19.46 Cr, accounting for 86.73% of total income. The company manages these costs through a structured procurement strategy to mitigate price volatility.

Manufacturing Efficiency

Capacity utilization metrics were not disclosed, but the company emphasizes optimum utilization of resources to attain organizational objectives.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is pursuing growth by strengthening its balance sheet through a 100% reduction in debt and a significant equity infusion of INR 15.03 Cr. This capital is intended to fund capacity expansion, optimize resource utilization, and improve the Current Ratio, which rose 945.44% to 17.06.

Products & Services

The company manufactures and sells various types of Wires and Packaging materials used in industrial and infrastructure applications.

Brand Portfolio

Excellent Wires and Packaging Limited.

Market Expansion

The company aims to contain risks within its appetite while expanding operations, though specific target regions and timelines were not disclosed.

🌍 External Factors

Industry Trends

The industry is currently facing a shift toward environmental sustainability and increased regulatory compliance, which may increase operational costs. The company is positioning itself by strengthening internal controls and financial stability.

Competitive Landscape

The company operates in a competitive environment characterized by pressure from low-cost imports and evolving environmental standards.

Competitive Moat

The company's moat is built on a debt-free balance sheet (Current Ratio of 17.06) and robust internal financial control systems that ensure the safeguarding of assets and detection of fraud.

Macro Economic Sensitivity

The company is highly sensitive to infrastructure spending and GDP growth, as infrastructure project delays are cited as a primary risk to order inflows.

Geopolitical Risks

Rising competition from cheaper imports poses a significant threat to domestic market share and pricing stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental norms and sustainability standards, as well as compliance with the Companies Act, 2013 and SEBI Listing Obligations.

Environmental Compliance

The company identifies environmental and sustainability challenges as key risks, though specific ESG compliance costs were not disclosed.

Taxation Policy Impact

The company's effective tax rate for the period was approximately 23.86%, with a current tax expense of INR 0.35 Cr (INR 34.79 Lakhs) on a Profit Before Tax of INR 1.46 Cr.

Legal Contingencies

The company has zero pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Key uncertainties include infrastructure project delays (potential revenue impact not quantified), rising competition from cheaper imports, and potential regulatory changes increasing operational costs.