💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Manufacturing of Packaging Materials,' which generated INR 207.84 Crore in revenue for FY 2024-25, representing a growth of 16.96% compared to INR 177.70 Crore in the previous year.

Profitability Margins

Operating Profit Margin improved significantly from 6.09% to 11.27% (an 85% increase) due to backward integration. Net Profit Margin rose from 5.63% to 24.93% (a 342% increase), largely aided by deferred tax accounting and operational efficiencies.

EBITDA Margin

The EBITDA for FY 2024-25 was INR 31.98 Crore, resulting in an EBITDA margin of 15.38% on total revenue from operations of INR 207.84 Crore.

Capital Expenditure

The company has planned capital expenditure of INR 10 Crore to INR 15 Crore for the expansion, replacement, and modernization of assets, which is expected to be funded through internal cash accruals.

Credit Rating & Borrowing

CRISIL reaffirmed the rating for working capital facilities of INR 52 Crore at 'CRISIL BBB-/Stable'. Borrowing costs are not explicitly stated, but the company maintains nil long-term debt and a debt-equity ratio of 0.25 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are Polymers and Aluminum, which account for the bulk of the total production cost.

Capacity Expansion

Current capacity is not specified; however, the company is planning a modernization and replacement capex of INR 10-15 Crore to support operational sustainability.

Raw Material Costs

Raw material costs account for the bulk of production expenses; the company recently increased product prices to pass on a hike in input costs, helping to sustain an operating margin above 11%.

Manufacturing Efficiency

Manufacturing efficiency is driven by backward integration, which helped increase the operating profit margin by 518 basis points YoY.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through backward integration of manufacturing processes to enhance margins and the modernization of assets via a planned INR 10-15 Crore capex. The company also leverages its position as part of the Nirma Group for financial flexibility and reputation.

Products & Services

The company specializes in the Manufacturing of Packaging Materials, including products like laminated tubes and other specialized packaging solutions.

Strategic Alliances

The company is part of the Nirma Group, which provides significant financial flexibility and support for its standalone business profile.

🌍 External Factors

Industry Trends

The packaging industry is experiencing a peak in input costs which may abate, potentially sustaining or improving operating margins for manufacturers who have integrated processes.

Competitive Moat

The company's moat is its association with the Nirma Group and its diversified product profile. This is sustainable as it provides a safety net for liquidity and credit access despite a modest scale of operations.

Macro Economic Sensitivity

The business is sensitive to economic conditions affecting demand and supply in domestic and international packaging markets.

⚖️ Regulatory & Governance

Industry Regulations

The company maintains ISO 9001:2015 and ISO 15378:2017 (GMP) certifications and is a DMF Type III certified company, ensuring compliance with international packaging standards.

Taxation Policy Impact

The company reported a profit of INR 51.34 Crore for FY 2024-25 after accounting for Deferred Tax, indicating a significant impact from tax-related accounting adjustments.

Legal Contingencies

The financial risk profile is noted to be undermined by a 'large contingent liability,' the specific value of which is not disclosed, but its settlement is a key monitorable for credit analysts.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainties include the settlement of a large contingent liability and the volatility of raw material prices (polymers/aluminum) which can drastically impact the 11.27% operating margin.

Technology Obsolescence Risk

The company is addressing potential obsolescence through a planned INR 10-15 Crore capex for the replacement and modernization of its manufacturing assets.

Credit & Counterparty Risk

Receivables stood at 68 days as of the last detailed reporting period, indicating a moderate credit risk from customers.