💰 Financial Performance

Revenue Growth by Segment

Total operating income was INR 153.08 Cr in FY21, representing a 14.05% decline from INR 178.11 Cr in FY20, primarily due to pandemic-related disruptions. The company operates in a single segment: manufacturing of cold rolled stainless steel strips.

Geographic Revenue Split

Not disclosed in available documents. Operations are centered at the manufacturing facility in Hisar, Haryana.

Profitability Margins

The PAT margin improved to 3.53% in FY21 (INR 5.41 Cr) from 2.20% in FY20 (INR 3.91 Cr). This improvement was driven by better operational efficiency and cost management despite lower revenues.

EBITDA Margin

The PBILDT margin increased to 9.50% in FY21 (INR 14.55 Cr) from 6.89% in FY20 (INR 12.27 Cr). Core profitability improved due to a shift in product mix and better absorption of fixed costs.

Capital Expenditure

Capital expenditure for the six months ended September 30, 2025, was INR 0.80 Cr, compared to INR 5.62 Cr for the full year ended March 31, 2025. This spending is directed toward maintaining and upgrading the 19,200 MTPA manufacturing facility.

Credit Rating & Borrowing

The company was rated CARE BB; Stable / CARE A4 (Issuer Not Cooperating) as of July 2020. Total borrowings as of September 30, 2025, stood at INR 68.43 Cr, with an interest coverage ratio of 2.93x in FY21, indicating a moderate ability to service debt.

⚙️ Operational Drivers

Raw Materials

Stainless steel coils and strips are the primary raw materials, representing the bulk of the manufacturing cost structure.

Import Sources

Not disclosed in available documents, though the company notes a high dependency on its primary suppliers.

Key Suppliers

Not disclosed in available documents, but the company maintains long-term relationships with its suppliers to ensure a constant supply of raw materials.

Capacity Expansion

The current installed capacity is 19,200 MTPA of cold rolled stainless steel strips as of March 31, 2019. No specific expansion timeline is detailed in the provided documents.

Raw Material Costs

Raw material costs are a significant portion of the total cost; margins are highly susceptible to changes in supplier sales policies and global steel price volatility.

Manufacturing Efficiency

The company focuses on job work and thickness reduction of coils; operating profit before working capital changes was INR 9.44 Cr for H1 FY26, reflecting core manufacturing efficiency.

Logistics & Distribution

Not disclosed in available documents, but the company serves a diversified customer base across automotive and electronics sectors, requiring efficient distribution from its Hisar plant.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company leverages its 30+ year track record and promoter experience to secure repetitive orders from a diversified customer base. Growth is supported by quasi-equity infusions and established relationships in the automotive and precision instrument sectors.

Products & Services

Cold rolled stainless steel strips used in automotive parts, watches, cameras, clamps, floppy disks, fiber optics, pens, packaging, needles, rings, and thermometers.

Brand Portfolio

Not disclosed in available documents; the company primarily operates in the B2B manufacturing space.

Market Expansion

The company serves a large, diversified customer base to eliminate customer concentration risk, though specific regional expansion plans are not detailed.

Market Share & Ranking

Not disclosed in available documents; the industry is noted as highly fragmented with many organized and unorganized players.

🌍 External Factors

Industry Trends

The stainless steel industry is cyclical and highly fragmented. Future growth is driven by demand for precision components in the medical and electronics sectors, where the company's high-quality strips are utilized.

Competitive Landscape

The market is highly competitive with a large number of local unorganized and organized players, leading to intense price competition.

Competitive Moat

The moat is built on a 30-year operational track record and deep promoter expertise (44 years). These established relationships with a diversified customer base provide a sustainable competitive advantage over newer entrants.

Macro Economic Sensitivity

High sensitivity to industrial production and GDP growth, as its products are key inputs for the automotive and consumer electronics industries.

Consumer Behavior

Increased demand for high-precision and durable components in automotive and medical devices supports long-term demand for cold rolled strips.

Geopolitical Risks

Global steel supply chain disruptions or trade barriers could impact the cost and availability of raw material coils.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with manufacturing standards for automotive and medical components, as well as Ind-AS accounting standards for listed entities.

Taxation Policy Impact

The company follows standard Indian corporate tax norms; income tax paid was INR 1.59 Cr in FY25.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainties are the inherent cyclicality of the steel industry and the high supplier concentration risk, which could impact margins by up to 2-3% during downturns.

Geographic Concentration Risk

100% of manufacturing operations are concentrated in Hisar, Haryana, creating a regional risk if local disruptions occur.

Third Party Dependencies

High dependency on a limited number of suppliers for raw material coils, making the company vulnerable to supplier-side shocks.

Technology Obsolescence Risk

The cold rolling process is established, but failure to upgrade to more automated or precise machinery could impact long-term competitiveness against larger organized players.

Credit & Counterparty Risk

Trade receivables of INR 47.31 Cr as of September 30, 2025, represent a significant credit exposure to customers in the automotive and electronics sectors.