💰 Financial Performance

Revenue Growth by Segment

Total income declined 20.83% to INR 21.44 Cr in FY25 from INR 27.08 Cr in FY24. This was primarily due to lower order execution in the metro rail segment during H1FY25, which was impacted by the general elections in India slowing down project timelines.

Geographic Revenue Split

The company is primarily focused on the Indian metro rail market, but it has developed non-metro products like commercial kitchen oven parts specifically for the export market. Specific percentage splits by region are not disclosed in available documents.

Profitability Margins

Net profit margin fell significantly from 9.64% in FY24 to 4.11% in FY25, a 57.41% decrease. This decline was driven by lower revenue scale and reduced absorption of fixed costs.

EBITDA Margin

Operating margins (EBITDA equivalent) moderated to 21.99% in FY25 from 23.06% in FY24. Core profitability remains healthy but was slightly squeezed by lower revenue scale and fixed cost absorption.

Capital Expenditure

Not disclosed in available documents, though the company recently improved its capital structure through an IPO in FY24 to support growth.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BB; Stable and short-term facilities are CARE A4. The company's overall gearing was 0.62x as of March 31, 2025, reflecting a comfortable capital structure.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include steel and aluminum used for manufacturing metro seats and EV components. While specific cost percentages are not disclosed, raw material availability and pricing are cited as significant risk factors for margins.

Capacity Expansion

The company utilizes in-house laser, CNC, and welding machines to reduce vendor dependency. While specific capacity units are not disclosed, the order book is currently double the FY24 revenue, indicating a need for high utilization.

Raw Material Costs

Total expenses were INR 20.55 Cr in FY25, a 15.33% decrease YoY. Raw material costs are a major component, and the company manages procurement through minimum order quantity policies, which led to a 425-day operating cycle.

Manufacturing Efficiency

Inventory turnover ratio fell 27.29% to 1.71 in FY25, and trade receivables turnover fell 58.60% to 1.81, indicating a temporary decline in operational efficiency due to lower order execution.

📈 Strategic Growth

Growth Strategy

The company plans to achieve growth by diversifying into non-metro sectors such as commercial kitchen ovens, EV aluminum products, and stainless steel solutions. This strategy aims to leverage existing manufacturing capabilities while reducing the 98% revenue dependency on the metro rail segment.

Products & Services

Metro rail seats, interior items, commercial kitchen oven parts, support kits, racks, shelves, and aluminum products for electric vehicles (EVs).

Brand Portfolio

Presstonic.

New Products/Services

New products include aluminum components for EVs and commercial kitchen oven products (racks, shelves). These are expected to diversify revenue streams, though specific contribution percentages are not yet disclosed.

Market Expansion

The company is targeting export markets for its non-metro products, specifically commercial kitchen oven parts, to expand its geographic footprint beyond India.

Strategic Alliances

Maintains long-term supply relationships with reputed global and domestic players including Alstom, BEML, and Siemens Mobility Austria.

🌍 External Factors

Industry Trends

The Indian rail market is growing rapidly with strong government support for metro and intercity trains. The industry is evolving towards more specialized interiors and EV-compatible components, where the company is positioning itself.

Competitive Landscape

Operates in a competitive industry with no entry barriers, facing pressure from both large organized players with more capital and smaller unorganized regional players.

Competitive Moat

The moat is sustained by the company's ability to meet stringent quality certifications and its established position as a supplier to global majors like Alstom and Siemens, which creates high barriers for new entrants.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and political stability. The FY25 revenue drop of 20.83% highlights the impact of election-related project delays on the business.

Consumer Behavior

Increasing urbanization and government focus on green mobility are driving demand for metro rail and EVs, directly benefiting the company's core and new product lines.

Geopolitical Risks

Exposed to global trade frictions and economic developments in countries where it conducts business, which could impact the cost of raw materials or demand for export products.

⚖️ Regulatory & Governance

Industry Regulations

Must comply with stringent domestic and international quality standards for rail and EV products. Changes in governmental regulations or pollution norms could impact manufacturing processes.

Taxation Policy Impact

The company is subject to Indian corporate tax laws, with an effective tax impact reflected in its FY25 PAT of INR 86.40 Lakhs. Changes in tax regimes are cited as a risk factor.

Legal Contingencies

Pending litigations are disclosed in Note 51 of the financial statements, which the company notes could impact its financial position.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 98% revenue concentration in the metro rail segment and the high working capital intensity (425-day cycle), which could strain liquidity if sales growth slows.

Geographic Concentration Risk

Heavy concentration in the Indian market for metro projects, though it is diversifying into export markets for non-metro products.

Third Party Dependencies

High dependency on top 5 customers (98% of revenue) and raw material vendors, though in-house machinery helps mitigate some vendor risks.

Technology Obsolescence Risk

The company uses ERP systems and IT-based operations to ensure efficiency and minimize manual errors, staying current with manufacturing technology like CNC and laser machines.

Credit & Counterparty Risk

Counterparty risk is mitigated by dealing with large, reputed companies like Siemens and Alstom, although the trade receivables turnover ratio slowed to 1.81 in FY25.