💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Automotive Tyres and Tubes) which reported a total turnover of INR 47.19 Cr for FY 2024-25. However, sales volume declined by 97% compared to the previous year due to the impact of the Corporate Insolvency Resolution Process (CIRP) and inadequate working capital.

Geographic Revenue Split

Primarily domestic; however, the company reported export sales of INR 69.24 Lacs (approximately 1.47% of total turnover) which are currently under regulatory scrutiny for non-realization within 9 months.

Profitability Margins

The company reported a Net Profit Ratio of -0.34% for FY 2024-25, which is an improvement from -1.14% in FY 2023-24. Despite the improvement in ratio, the company incurred a significant net loss of INR 16.02 Cr.

EBITDA Margin

The Return on Capital Employed (ROCE) improved to 2.43% in FY 2024-25 from -1.04% in the previous year, indicating a slight recovery in core operational efficiency despite the overall net loss.

Capital Expenditure

Planned capital expansion documents remained unexecuted during the year due to the absence of planned production and financial constraints. Specific INR values for future Capex are not disclosed in the available documents.

Credit Rating & Borrowing

Credit ratings are not disclosed, but the company exhibits severe financial stress with a Debt-Equity Ratio of -0.86 (due to negative net worth of INR 16.29 Cr) and a negative Debt Service Coverage Ratio of -3.41.

⚙️ Operational Drivers

Raw Materials

The company processes materials for Automotive Tyres and Tubes, primarily rubber and chemical compounds. Specific percentage breakdowns per material are not disclosed, but input cost volatility is cited as a primary risk.

Import Sources

Not specifically disclosed in the provided documents.

Key Suppliers

Not specifically disclosed; however, the company has significant trade payables of INR 71.44 Cr (total liabilities) and is struggling with vendor reconciliations.

Capacity Expansion

Current capacity is underutilized due to a 2-year CIRP period and inadequate working capital. The new management is targeting a boost in capacity utilization but has not provided specific MTPA targets.

Raw Material Costs

Purchases declined by 54% YoY in FY 2024-25, reflecting reduced production activity. Input costs are highly sensitive to global commodity price fluctuations.

Manufacturing Efficiency

Manufacturing efficiency was severely hampered by the CIRP process; however, the company has restarted production and exports under new management.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The strategy focuses on streamlining business activities post-CIRP, optimizing costs, and boosting capacity utilization. The company aims to leverage government relaxations and 'ease of doing business' initiatives to accelerate revenue.

Products & Services

Automotive Tyres and Tubes for various vehicle segments.

Brand Portfolio

Innovative Tyres & Tubes.

New Products/Services

Not disclosed in the current reporting period.

Market Expansion

The company has restarted export operations, with an initial realization of INR 69.24 Lacs, though currently facing regulatory delays in payment realization.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company has ongoing related party transactions for sales and purchases with Ten on Ten Rubtech Pvt Ltd, TOT Tyres Pvt Ltd, and Ten on Ten International Pvt. Ltd.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward evolving environmental standards and regulatory changes. The company is currently positioned in a recovery phase following insolvency.

Competitive Landscape

Faces intense competition from both domestic tyre majors and global players, which limits pricing flexibility.

Competitive Moat

No significant moat identified; the company is currently focused on operational survival and stabilizing its negative net worth of INR 16.29 Cr.

Macro Economic Sensitivity

Highly sensitive to the automobile sector's cyclicality and GDP growth, which dictates freight and passenger movement demand.

Consumer Behavior

Demand is driven by vehicle production and the replacement tyre market.

Geopolitical Risks

International instability is cited as the reason for the 'stuck up' export proceeds of INR 69.24 Lacs from overseas customers.

⚖️ Regulatory & Governance

Industry Regulations

Non-compliance with FEMA Regulation 9(1) due to failure to realize export proceeds within 9 months. Contravention of Section 73 of the Companies Act, 2013, regarding unappropriated advances of INR 49.27 Lacs held for over 365 days.

Environmental Compliance

Not disclosed in absolute INR values.

Taxation Policy Impact

The company has a GST ITC mismatch of INR 28.98 Lacs where credit was reversed in books but not on the GST portal.

Legal Contingencies

The company recently emerged from the NCLT process (CIRP). It faces potential penalties for FEMA non-compliance and Section 73 violations mentioned in the audit qualifications.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability of the new management to stabilize operations post-CIRP. The company has a negative net worth of INR 16.29 Cr and a 97% decline in sales.

Geographic Concentration Risk

Heavily concentrated in the domestic Indian market, with a small, problematic export component (1.47% of revenue).

Third Party Dependencies

High dependency on a few major debtors and creditors for whom balance confirmations (INR values not specified) are currently unavailable.

Technology Obsolescence Risk

The company needs to monitor evolving environmental standards to avoid product obsolescence.

Credit & Counterparty Risk

High risk; major debtors have not provided balance confirmations, and export proceeds from one party are overdue by >9 months.