💰 Financial Performance

Revenue Growth by Segment

Total revenue grew from INR 495.93 Cr in FY23 to INR 554.66 Cr in FY25, representing an 11.8% increase over two years. H1 FY24 revenue of INR 279 Cr showed an 18.7% YoY growth compared to INR 235 Cr in H1 FY23, driven by a 12.7% increase in sales volume to 42,031 tonnes.

Geographic Revenue Split

The company holds a dominant position in Western Maharashtra as the sole authorized distributor for Jindal Steel and Power Limited (JSPL), which serves as its primary revenue hub. Specific percentage splits for other regions are not disclosed.

Profitability Margins

Net Profit margins have seen a downward trend, declining from 2.89% in FY23 to 2.52% in FY24, and further to 1.74% in FY25 (INR 9.67 Cr profit on INR 554.66 Cr revenue). This decline is attributed to volatile steel prices and stagnant market conditions.

EBITDA Margin

EBITDA margin was 4.78% in FY23 (INR 23.73 Cr), down from 5.06% in FY22. Operating margins were reported at 4% in H1 FY24 compared to 7% in FY23, reflecting pressure from higher raw material costs which offset lower employee expenses.

Capital Expenditure

Tangible assets stood at INR 4.40 Cr as of September 2023. While specific future capex figures are not disclosed, the company is focusing on expansion through its subsidiary, Shivoham Ventures Pvt Ltd (SVPL).

Credit Rating & Borrowing

The company maintains a CRISIL BBB/Stable rating for long-term facilities and CRISIL A3+ for short-term facilities. Interest coverage ratio stood at 2.6x in FY25, declining from 3.0x in FY24 and 4.9x in FY23.

⚙️ Operational Drivers

Raw Materials

Mild steel structural products including angles, plates, channels, and thermo-mechanically treated (TMT) bars. Raw material costs represent approximately 92.5% of total revenue (INR 459.09 Cr out of INR 495.93 Cr in FY23).

Import Sources

Sourced domestically within India, primarily from major steel plants in states like Chhattisgarh and Odisha where principals like JSPL and SAIL operate.

Key Suppliers

Jindal Steel and Power Limited (JSPL) (Sole distributor for Western Maharashtra), Steel Authority of India Ltd (SAIL), RINL, and JSW Special Products.

Capacity Expansion

The company operates as a trading and distribution entity rather than a manufacturer; it maintains an average inventory of 10,000-12,000 MT to support its distribution scale.

Raw Material Costs

Raw material costs increased to INR 459.09 Cr in FY23, a 23.7% increase YoY from INR 371.14 Cr in FY22, tracking the 21.9% growth in total income.

Manufacturing Efficiency

Not applicable as the company is a trading house; efficiency is measured by inventory turnover which was 5.07 in FY25, a 10.4% decline from 5.66 in FY24.

Logistics & Distribution

Distribution is centralized in Western Maharashtra; logistics costs are embedded in 'Other Expenses' which decreased from INR 11.41 Cr in FY22 to INR 8.71 Cr in FY23.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth is targeted through the expansion of the dealership network via the subsidiary SVPL and leveraging the migration to the NSE Main Board (effective Nov 14, 2025) to enhance financial flexibility and market visibility.

Products & Services

Mild steel structural products (angles, plates, channels, TMT bars), coils, and plates sold to infrastructure and real estate sectors.

Brand Portfolio

Shiv Aum Steels; authorized distributor for Jindal Steel and Power Limited (JSPL).

New Products/Services

Expansion into new dealership lines through SVPL is expected to diversify the product basket beyond traditional structural steel.

Market Expansion

Focusing on deepening penetration in Western Maharashtra and exploring new territories through subsidiary-led dealerships.

Market Share & Ranking

Sole distributor for JSPL in Western Maharashtra, establishing a dominant local market position in the organized steel trading segment.

Strategic Alliances

MOU dealership with Steel Authority of India Ltd (SAIL) and JSW Special Products; sole distributorship with JSPL.

🌍 External Factors

Industry Trends

Steel Service Centers (SSCs) are estimated to process 25% of Indian steel output due to growing demand for smaller batches and shorter lead times, favoring organized players like SHIVAUM.

Competitive Landscape

Faces intense competition from both fragmented unorganized traders and other organized dealers of SAIL, RINL, and JSW.

Competitive Moat

Sustainable moat derived from 30+ years of promoter experience and the 'Sole Distributor' status for JSPL in a key industrial belt (Western Maharashtra), creating high entry barriers for competitors.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending; demand is strongly correlated to the capital expenditure cycles of the Indian economy.

Consumer Behavior

Shift toward organized SSCs that offer stringent quality requirements, tight delivery commitments, and professional service.

Geopolitical Risks

Indirect exposure through global steel price fluctuations which dictate domestic pricing and inventory valuation.

⚖️ Regulatory & Governance

Industry Regulations

Subject to labor laws, tax regulations, and SEBI directives. Compliance is monitored by the Board's Audit Committee to ensure smooth operational flow.

Environmental Compliance

Not disclosed; company operates in trading which has lower environmental impact than manufacturing.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 24.5% (INR 3.13 Cr tax on INR 12.79 Cr PBT).

Legal Contingencies

The company maintains stringent compliance mechanisms to mitigate risks related to the Companies Act and SEBI directives; no specific pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Cyclicality in end-user industries (infrastructure/real estate) and volatility in steel prices which can impact operating margins (expected to remain around 4%).

Geographic Concentration Risk

High concentration in Western Maharashtra due to the JSPL sole distributorship agreement.

Third Party Dependencies

Significant dependency on JSPL for product supply; however, this is partially mitigated by dealer status with SAIL and RINL.

Technology Obsolescence Risk

Low risk for steel trading, but the company is implementing internal control systems to facilitate smoother information flow and resource management.

Credit & Counterparty Risk

Trade receivables stood at INR 60.97 Cr as of Sept 2023, up from INR 34.76 Cr in March 2023, indicating a potential stretch in the working capital cycle.