💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 11.28% YoY to INR 62.95 Cr in FY 2024-25, up from INR 56.57 Cr in FY 2023-24. While segment-specific percentages are not detailed, the growth is driven by Railway Passenger Information Systems and LED Display solutions.

Geographic Revenue Split

Primarily domestic (India) with 100% of current revenue; however, the company established SOA Electronics Trading LLC in Dubai in May 2024 to target international markets.

Profitability Margins

Net Profit Margin stood at 15.55% for FY 2024-25 (INR 9.79 Cr profit on INR 62.95 Cr revenue). Profit Before Tax (PBT) margin was 20.70% (INR 13.03 Cr).

EBITDA Margin

Core profitability (PBT) margin decreased from 31.35% in FY 2023-24 to 20.70% in FY 2024-25, a YoY decline of 1,065 basis points due to expenditure growing at 9.83% while revenue grew 11.28%.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is investing in R&D for IoT-integrated smart solutions and green manufacturing practices.

⚙️ Operational Drivers

Raw Materials

Electronic components for LED displays, signaling equipment parts, and materials for Railway Passenger Information Systems. Specific percentage of total cost per material is not disclosed.

Capacity Expansion

Current installed capacity is not disclosed in units; however, the company is scaling operations in Railway Signaling and LED Display solutions through its new subsidiary MICK Digital India Limited (incorporated Nov 2024).

Raw Material Costs

Total expenditure (including raw materials) was INR 49.92 Cr in FY 2024-25, representing 79.3% of total revenue, compared to 80.3% in the previous year.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through market expansion into new geographies (Dubai), developing IoT-integrated smart solutions for digital infrastructure, and securing Railway EPC contracts such as the INR 1.50 Cr project for the Vijayawada Division.

Products & Services

Railway Passenger Information Systems (PIS), LED Display Boards, Emergency Light Units, Passenger Announcement & Passenger Information System (PAPIS), and Remote monitoring processing units.

Brand Portfolio

MIC Electronics.

New Products/Services

IoT-integrated and smart solutions for digital infrastructure and niche signaling products.

Market Expansion

Targeting international markets via SOA Electronics Trading LLC (Dubai) and domestic expansion in Railway signaling and EPC contracts.

🌍 External Factors

Industry Trends

The industry is shifting toward IP-based Integrated Passenger Information Systems and smart city digital infrastructure, growing at a pace that requires constant IoT integration.

Competitive Landscape

Faces intense competition in the LED display and railway signaling segments from both domestic and international players.

Competitive Moat

The company holds RDSO (Research Designs and Standards Organisation) and RCF (Rail Coach Factory) approvals, which are mandatory and stringent quality certifications that act as a high barrier to entry in the railway sector.

Macro Economic Sensitivity

High sensitivity to Indian Government infrastructure spending and railway modernization budgets.

Consumer Behavior

Increasing demand for real-time, IP-based passenger information and enhanced safety signaling in public transport.

Geopolitical Risks

Export market volatility is identified as a risk for the new international trading subsidiary in Dubai.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RDSO and RCF quality standards and SEBI (LODR) Regulations for corporate governance.

Environmental Compliance

Focusing on green practices and sustainability in manufacturing; specific ESG costs not disclosed.

Taxation Policy Impact

Effective tax rate for FY 2024-25 was approximately 24.8% (INR 3.24 Cr tax on INR 13.03 Cr PBT).

Legal Contingencies

No penalties or non-compliances were imposed by stock exchanges or statutory authorities in the last three years.

⚠️ Risk Analysis

Key Uncertainties

Government policy changes and delays in project execution could impact revenue by an estimated 10-15% if major railway tenders are postponed.

Geographic Concentration Risk

High concentration in India, though the company is diversifying into the Middle East (Dubai).

Third Party Dependencies

High dependency on Indian Railways as the primary customer and RDSO for product approvals.

Technology Obsolescence Risk

High risk due to rapid technological disruption in LED and digital signaling fields.