MODISONLTD - Modison

📊 NSE: MODISONLTD 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 9:56

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 21.78% YoY to INR 493.50 Cr in FY24, primarily driven by higher demand in the Low Voltage (LV) segment. Q3 FY24 income specifically surged 38% YoY to INR 107.9 Cr compared to INR 78.2 Cr in Q3 FY23.

Geographic Revenue Split

Exports contribute approximately 15% of net sales, while the remaining 85% is derived from the domestic Indian market, particularly catering to top switchgear manufacturers.

Profitability Margins

Net Profit margin improved to 5.27% in FY24 from 3.33% in FY23. However, margins remain volatile; H1 FY25 PBILDT margin was 8.39% compared to 7.96% in FY24. Net profit for FY24 stood at INR 24.68 Cr, a 15.63% increase YoY.

EBITDA Margin

EBITDA margin stood at 9.60% in FY24, a slight improvement from 9.43% in FY23. Absolute EBITDA grew 23.96% YoY to INR 47.38 Cr. Q3 FY24 EBITDA margin saw a massive recovery to 8% from -1% in the previous year's quarter.

Capital Expenditure

The company undertook capital expenditure of INR 15.65 Cr in FY25 to support modernization and capacity needs. Historical non-current assets stood at INR 85.1 Cr as of FY23.

Credit Rating & Borrowing

CARE Ratings revised the outlook to 'Stable' from 'Negative'. Borrowing costs are impacted by an increase in debt, with the Interest Coverage Ratio declining 40.18% to 6.96x in FY25 from 11.30x in FY24 due to higher utilization of working capital limits.

⚙️ Operational Drivers

Raw Materials

Silver represents the primary raw material, accounting for 75-80% of total raw material purchases. Other critical materials include Copper and Tungsten.

Import Sources

Approximately 10% of raw material requirements are met through imports, while the majority is sourced domestically within India.

Key Suppliers

Procurement is concentrated, with the top five suppliers accounting for 65-70% of total purchases over the last three years. Suppliers include reputed providers of precious and base metals.

Capacity Expansion

Current capacity is focused on electrical contacts for HV and LV applications. Expansion is targeted toward green energy equipment and energy-efficient manufacturing processes, though specific MTPA figures are not disclosed.

Raw Material Costs

Raw material costs are highly volatile due to silver price fluctuations. The company manages this through partial hedging on MCX and natural hedging, though it lacks a formal defined hedging policy.

Manufacturing Efficiency

Efficiency is being addressed through Lean Six Sigma initiatives and the 'Execution Excellence' program aimed at waste removal and production variance reduction.

Logistics & Distribution

Distribution is focused on domestic OEMs and expanding export segments to reduce dependency on local switchgear manufacturers.

📈 Strategic Growth

Expected Growth Rate

21.78%

Growth Strategy

Growth will be achieved through product diversification into green energy equipment, expanding the export market share, and increasing penetration in the High Voltage (HV) and Low Voltage (LV) domestic segments. The company is also implementing automation and digitalization to improve precision and scale.

Products & Services

Electrical contacts for low, medium, and high voltage switchgear, used in industries like Automotive, Railway, Aerospace, Marine, Defence, and Engineering.

Brand Portfolio

MODISON

New Products/Services

Development of specialized products for green energy equipment and cost-effective materials for the electrical industry are expected to drive future revenue.

Market Expansion

Targeting new geographies for market diversification and expanding the export segment to mitigate domestic OEM concentration.

Market Share & Ranking

Not disclosed in available documents, but the company is a leading manufacturer of electrical contacts in India.

Strategic Alliances

The company maintains long-term strategic relationships with top switchgear manufacturers in India to secure steady order flow.

🌍 External Factors

Industry Trends

The industry is shifting toward green energy and higher energy efficiency. Modison is positioning itself by developing products for the renewable energy equipment sector and automating production for higher precision.

Competitive Landscape

Faces competition from global players, particularly from China, and domestic manufacturers in the electrical equipment space.

Competitive Moat

Moat is built on 50+ years of niche metallurgy expertise and long-term (20+ years) relationships with major global and domestic switchgear OEMs. This is sustainable due to high switching costs and technical certification requirements.

Macro Economic Sensitivity

Highly sensitive to global commodity price cycles, particularly silver, and industrial growth in the power and automotive sectors.

Consumer Behavior

Shift toward sustainable and green energy solutions is driving demand for specialized electrical contacts.

Geopolitical Risks

Trade barriers or supply disruptions in silver-producing regions and competitive pricing from China are primary geopolitical concerns.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental standards regarding metal processing and effluents. Compliance is monitored through regular internal and third-party audits.

Environmental Compliance

Adoption of ESG policies and regular third-party audits of environmental practices, particularly regarding electroplating and effluent treatment.

Taxation Policy Impact

The effective tax rate is approximately 26-27%, with FY24 taxes at INR 1.5 Cr on a PBT of INR 5.6 Cr in Q3.

Legal Contingencies

No penalties, restrictions, or sanctions were identified in recent regulatory communications. The company declared that no violation or contravention has been identified by authorities.