💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 82.04% YoY to INR 17,615.60 Lacs in FY25 from INR 9,676.54 Lacs in FY24. Segment-specific growth was not disclosed, but total income reached INR 17,917.93 Lacs.

Geographic Revenue Split

Not explicitly disclosed, though the group operates through subsidiaries including Metcorp Trading LLC (international trading) and India-based entities like Shah Agrocorp and Western Urja.

Profitability Margins

Net Profit Margin (based on Total Comprehensive Income) stood at 18.5% in FY25 (INR 3,259.81 Lacs) compared to 4.48% in FY24 (INR 433.42 Lacs), representing a significant improvement in bottom-line efficiency.

EBITDA Margin

Operating Profit Margin (before working capital changes) was 22.07% in FY25 (INR 3,889.19 Lacs) compared to 8.15% in FY24 (INR 789.23 Lacs), driven by higher operational scale.

Capital Expenditure

Property, Plant and Equipment increased by INR 632.39 Lacs, reaching INR 2,776.12 Lacs in FY25 from INR 2,143.73 Lacs in FY24.

Credit Rating & Borrowing

Finance costs remained low at INR 3.98 Lacs in FY25, up from INR 1.43 Lacs in FY24, suggesting minimal reliance on interest-bearing debt.

⚙️ Operational Drivers

Raw Materials

Metal-based raw materials (implied by company name and cost structure) accounted for INR 15,795.16 Lacs, representing 89.6% of total revenue.

Import Sources

Not disclosed, though Metcorp Trading LLC suggests international sourcing capabilities.

Raw Material Costs

Raw material costs increased 141.5% YoY to INR 15,795.16 Lacs in FY25, up from INR 6,539.38 Lacs in FY24, reflecting increased production volume.

Manufacturing Efficiency

Depreciation and Amortization expenses were INR 362.97 Lacs in FY25, a marginal 3% increase YoY.

Logistics & Distribution

Other expenses, including distribution, rose 23.2% to INR 744.34 Lacs in FY25.

📈 Strategic Growth

Growth Strategy

Growth is driven by inorganic expansion, specifically the acquisition of 85.60% of General Capital and Holding Company and 80% of Metcorp Trading LLC via share swap on July 4, 2025, alongside capital infusion through preferential allotments at INR 4.71 per share.

Products & Services

Metal products and international trading services.

Market Expansion

Expansion into international trading markets through the acquisition of Metcorp Trading LLC.

Strategic Alliances

Share swap arrangements for subsidiary acquisitions and preferential allotments for capital raising.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward consolidated trading and holding structures to manage diversified portfolios across metals, energy, and agro-sectors.

Competitive Moat

Moat is based on an integrated group structure and international trading presence, though sustainability is challenged by high raw material cost dependency.

Macro Economic Sensitivity

Highly sensitive to industrial demand and global metal commodity price cycles.

Geopolitical Risks

Trade barriers or regulatory changes in international trading hubs could impact Metcorp Trading LLC's operations.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and SEBI Listing Obligations and Disclosure Requirements (LODR) 2015.

Taxation Policy Impact

Current tax liability was INR 7.95 Lacs in FY25; standard corporate tax rates apply.

⚠️ Risk Analysis

Key Uncertainties

Liquidity risk is high as trade receivables increased by INR 7,143.45 Lacs, leading to a negative operating cash flow of INR 4,670.94 Lacs.

Geographic Concentration Risk

Operations are primarily centered in Ahmedabad, India, with new concentration in international trading hubs.

Third Party Dependencies

High dependency on raw material suppliers given the 89.6% cost contribution.

Credit & Counterparty Risk

Receivables increased 106% YoY, posing significant counterparty credit risk.