💰 Financial Performance

Revenue Growth by Segment

Total income increased by 22.42% to INR 2,546.27 Cr in FY 2024-2025, primarily driven by higher sales realizations and a 103.57% surge in other income. Manufacturing revenue remained steady at approximately INR 2,760 Cr in FY23, while the new Real Estate segment began contributing through land inventory acquisition.

Geographic Revenue Split

The company maintains a significant presence in the export market, which provides revenue diversification and acts as a natural hedge against currency fluctuations. Specific regional percentage splits are not disclosed, but the Visakhapatnam unit is strategically positioned for port-based exports.

Profitability Margins

Operating Profit Margin improved from 5.44% to 8.40% in FY25 due to higher sales realization and decreased power costs. Net Profit Margin saw a substantial increase from 20.37% to 35.18% in FY25, heavily influenced by a gain in fair value of investments (Other Income).

EBITDA Margin

EBITDA grew by 91.99% YoY to INR 894.28 Cr in FY25. The EBITDA/Turnover ratio improved from 27.03% to 49.15% during the same period, reflecting enhanced core profitability and investment gains.

Capital Expenditure

Ongoing capex at Maithan Ferrous Private Limited (MFPL) is being funded entirely through internal accruals. The company also invested in land for its real estate diversification, contributing to a 73.12% increase in inventory value to INR 588.04 Cr.

Credit Rating & Borrowing

CRISIL reaffirmed 'AA/Negative' and CARE reaffirmed 'AA; Stable'. Finance costs increased by 1253.19% to INR 20.91 Cr in FY25 due to a rise in current borrowings to INR 565.08 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Manganese Ore and Coke/Coal. Raw material costs accounted for INR 1,368 Cr in FY23, representing approximately 47.4% of total revenue.

Import Sources

Not specifically disclosed in available documents, though the company utilizes its Visakhapatnam unit for efficient import handling.

Capacity Expansion

Current installed ferroalloy capacity is 2,35,600 TPA. Expansion through MFPL for manganese-based alloys is scheduled for commissioning by H2 FY2025.

Raw Material Costs

Raw material costs were INR 1,368 Cr in FY23. The company faces volatility in raw material costs primarily resulting from the ongoing energy crisis and geopolitical conflicts like Russia-Ukraine.

Manufacturing Efficiency

Capacity utilization declined to 75% in FY24 and further to 60% in H1 FY25 due to the strategic shutdown of the Impex plant to avoid losses from high power costs.

Logistics & Distribution

The Kalyaneshwari unit is located in the steel belt of India, while the Visakhapatnam unit is port-based, optimizing distribution to both domestic steel plants and export markets.

📈 Strategic Growth

Expected Growth Rate

22.42%

Growth Strategy

Growth will be driven by the resumption of operations at IMFAL, completion of capex at MFPL by H2 FY25, and diversification into the Real Estate sector. The merger of IMFAL with MAL is also underway to achieve cost efficiencies and streamline operations.

Products & Services

Ferro Manganese, Ferro Silicon, and Silico Manganese sold primarily to the steel industry.

Brand Portfolio

Maithan Alloys Limited.

New Products/Services

Diversification into the Real Estate sector through land acquisition and development.

Market Expansion

Targeting volume growth through the ramp-up of IMFAL and MFPL production capacities by the second half of fiscal 2025.

Strategic Alliances

MFPL is an 80% subsidiary; MAL is currently merging its wholly-owned subsidiary IMFAL with itself.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Green Steel' and adopting AI, Machine Learning, and smart manufacturing to improve efficiency and sustainability.

Competitive Landscape

The market is characterized by cyclical demand and competition from other ferroalloy producers, though MAL's direct-to-customer model provides a stable order flow.

Competitive Moat

Moat is built on cost leadership, strategic plant locations in the steel belt/ports, and a massive cash cushion of over INR 3,100 Cr providing financial flexibility during downturns.

Macro Economic Sensitivity

Highly sensitive to steel industry cycles and government infrastructure spending, with fiscal deficit targets (5.1% for FY25) providing headroom for physical infrastructure growth.

Consumer Behavior

Demand is directly linked to the production levels of the global and domestic steel industry.

Geopolitical Risks

The Russia-Ukraine conflict has caused a steep increase in power costs and volatility in raw material prices, impacting the feasibility of certain plant operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to strict adherence to government guidelines, environmental pollution norms, and safety measures including factory shutdown protocols.

Environmental Compliance

MFPL received environmental clearance from MoEF & CC on August 11, 2022, for its expansion project.

Taxation Policy Impact

Tax expenses increased by 122.60% to INR 218.24 Cr in FY25 due to higher taxable profits.

Legal Contingencies

IMFAL was acquired through the National Company Law Tribunal (NCLT) process in November 2021; other specific pending court case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in power costs and finished product realizations are the primary risks, potentially leading to cash accruals falling below INR 200 Cr on a sustained basis.

Geographic Concentration Risk

Manufacturing is concentrated in the Kalyaneshwari (West Bengal) and Visakhapatnam (Andhra Pradesh) units.

Third Party Dependencies

Dependency on power utilities is high, as evidenced by the Impex plant shutdown due to unviable power tariffs.

Technology Obsolescence Risk

The company is mitigating technology risks by leveraging AI and ML for smart manufacturing and efficiency improvements.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio increased to 6.83 in FY25, though the collection period increased from 70 to 84 days in FY24, indicating a slight stretch in working capital.