💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment comprising electrical, automobile, and irrigation components. Consolidated revenue grew nearly 30% in FY24 to INR 328 Crores, up from INR 258 Crores in FY23.

Profitability Margins

Gross Profit margin was 24.4% in FY24 (INR 80 Cr), slightly down from 24.8% in FY23. Net Profit (PAT) margin improved significantly from 3.3% in FY23 to 5.9% in FY24, representing a ~2x jump in core profitability.

EBITDA Margin

EBITDA margin stood at 13.6% in FY24, a 30% relative improvement from 10.4% in FY22. Operating margins are expected to sustain between 13% and 13.5% in the near term.

Capital Expenditure

Total assets increased from INR 316.10 Cr in March 2024 to INR 423.66 Cr in March 2025, reflecting ongoing capex to support a projected 15-20% annual revenue growth.

Credit Rating & Borrowing

CRISIL Ratings maintains a healthy profile for the company, citing a comfortable capital structure and debt coverage metrics, though specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Electrical components, automobile components, irrigation components, and polymers (implied by the original name Spectrum Polytech). Specific cost percentages per material are not disclosed.

Key Suppliers

Not disclosed in available documents; however, the company is actively pursuing a strategy to develop more vendors to ensure business continuity.

Capacity Expansion

Revenue growth is supported by increased capacity and the addition of new customers, though specific unit-based capacity figures (MT/units) were not disclosed.

Manufacturing Efficiency

Operational efficiency is highlighted by a 30% jump in EBITDA and a doubling of PBT margins from 4.2% in FY22 to 8.2% in FY24.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through increased manufacturing capacity, the addition of new customers, organic growth from existing global clients like Schneider and Panasonic, and strategic positioning in the electric vehicle (EV) and smart technology markets.

Products & Services

Design and manufacture of electrical components, automobile components, and irrigation components.

Brand Portfolio

Spectrum Electrical Industries Limited (formerly Spectrum Polytech).

New Products/Services

The company is focusing on innovative offerings for the EV and smart technology sectors to capitalize on rapidly expanding sustainable technology adoption.

Market Expansion

Market expansion is targeted through strategic collaborations and partnerships with leading organizations to enhance service delivery and market presence.

Strategic Alliances

Strategic partnerships are formed with leading organizations to combine resources and expertise, though specific partner names for new JVs were not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable practices, Electric Vehicles (EV), and smart technology. Spectrum is positioning itself to leverage these trends through advanced technology expertise.

Competitive Landscape

The company operates in a dynamic market environment requiring precision and innovation to maintain a competitive edge against other electrical component manufacturers.

Competitive Moat

The company's moat is built on over 30 years of promoter experience and established, long-standing relationships with global market leaders like Schneider and Panasonic, providing a healthy market position.

Macro Economic Sensitivity

Sensitive to global economic conditions; IMF forecasts global growth at 3.0% for 2025, with China at 4.8% and the US at 1.9%, which affects export demand for components.

Consumer Behavior

Increasing consumer and business adoption of sustainable technology is driving demand for EV and smart technology components.

Geopolitical Risks

Operations are subject to changes in government regulations, tax laws, and international trade conditions affecting domestic and overseas markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (LODR) Regulations, 2015, and Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act.

Environmental Compliance

The company integrates sustainable practices into its product lines, though specific ESG compliance costs were not disclosed.

Taxation Policy Impact

Current tax liabilities (net) were INR 4.43 Cr as of March 31, 2025.

Legal Contingencies

Statutory auditors issued an unmodified opinion for FY25, indicating no material legal or financial misstatements were detected during the audit of standalone and consolidated results.

⚠️ Risk Analysis

Key Uncertainties

Key risks include a decline in operating margins below 10%, higher-than-expected debt-funded capex, and potential fraud or management override of internal controls.

Geographic Concentration Risk

The registered office and primary operations are concentrated in Jalgaon, Maharashtra, India.

Third Party Dependencies

High dependency on the top 3 customers (53% revenue) and the need to develop a more robust vendor network to mitigate supply chain disruptions.

Technology Obsolescence Risk

The company faces technology risks in the rapidly evolving EV and smart tech sectors, addressed through continuous refinement of innovative product offerings.

Credit & Counterparty Risk

Trade payables stood at INR 42.23 Cr as of March 2025, with a focus on maintaining adequate internal controls to ensure the quality of financial reporting and receivables.