SINTERCOM - Sintercom India

📊 NSE: SINTERCOM 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 13:26

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Sintered Metal & Auto Components, which generated INR 90.01 Cr in revenue for FY25, representing a 2.6% growth over FY24 revenue of INR 87.71 Cr.

Geographic Revenue Split

West India (Maharashtra/Gujarat) contributes 60% of revenue, while North and South India each contribute 20%.

Profitability Margins

Net Profit Margin declined 44% from 1.32% in FY24 to 0.74% in FY25. Operating Margin remained stable at 7% YoY. Reported PAT for FY25 was INR 0.67 Cr, down 41.7% from INR 1.15 Cr in FY24.

EBITDA Margin

EBITDA margin improved from 7.20% in FY21 to 16.53% in FY24, reflecting a long-term core profitability improvement of 129% over four years.

Credit Rating & Borrowing

Rated by CRISIL. Interest coverage ratio was 3.04 in FY25, a 14% decrease from 3.54 in FY24. Debt-Equity ratio increased 43% to 0.52 in FY25.

⚙️ Operational Drivers

Raw Materials

Metal powders (Iron, Steel, Copper).

Import Sources

Not disclosed in available documents; however, the company is actively pursuing localization of raw materials to mitigate supply chain risks.

Key Suppliers

Miba Sinter Group (strategic partner and stakeholder).

Capacity Expansion

Not disclosed in available documents; however, higher capacity utilization was cited as a key driver for mitigating margin pressures in FY25.

Raw Material Costs

Cost of materials consumed is a primary expense; localization strategies are used to manage input cost fluctuations and stabilize margins.

Manufacturing Efficiency

Operational efficiency and localization helped mitigate margin pressures despite a 44% drop in net profit margin.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth will be achieved through diversification into non-automotive industries such as industrial machinery, consumer appliances, medical devices, and aerospace. The company is also expanding its export footprint to global Tier-1 suppliers and leveraging its technical partnership with Miba Sinter Group to maintain single-source supplier status for critical OEM components.

Products & Services

Sintered components for automotive engines, transmissions, and body chassis.

Brand Portfolio

Sintercom.

New Products/Services

New applications for engine, transmission, and body chassis; expansion into medical devices and aerospace components.

Market Expansion

Expansion into global export markets and non-automotive industries (aerospace, medical) to reduce dependency on the domestic passenger vehicle segment.

Strategic Alliances

Miba Sinter Group (significant stakeholder and technology partner).

🌍 External Factors

Industry Trends

The automotive industry is seeing a 23% CAGR in sintered component adoption due to stricter emission norms (BS-VI) and the growth of the SUV segment. The industry is shifting toward lightweighting and localization to manage costs.

Competitive Landscape

Competitive pressures from players adopting advanced technologies like additive manufacturing; Sintercom counters this with Miba's technical support and upskilling.

Competitive Moat

Sintercom's moat is built on its strategic partnership with Miba Sinter Group, providing access to 401 patents and specialized sintering technology. This technical leadership allows them to maintain single-source supplier status for critical OEM components, ensuring high switching costs for clients.

Macro Economic Sensitivity

Highly sensitive to domestic automotive demand, particularly in the SUV and compact car segments, and global commodity price cycles.

Consumer Behavior

Shift toward SUVs and compact cars, and increasing demand for fuel-efficient vehicles driving sintered part adoption.

Geopolitical Risks

Exposure to global trade uncertainties and tariffs as the company expands its export footprint.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with BS-VI emission norms is a key driver for product adoption. The company adheres to Ind AS accounting standards and environmental laws as part of its internal control framework.