SRPL - Shree Ram Prote.

📊 NSE: SRPL 🏢 Solvent Extraction 📅 Last Updated: 12/14/2025 13:16

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income collapsed by 90.71% YoY, falling from INR 162.73 Cr in FY2023 to INR 15.11 Cr in FY2024. This drastic decline is attributed to a severe shortage of funds for business operations and raw material procurement in the cotton seed extraction and trading segments.

Geographic Revenue Split

The company is based in Rajkot, Gujarat, which serves as its primary operational hub. While specific regional splits are not disclosed, the 90.71% revenue decline suggests a near-total cessation of trading and manufacturing activities across its domestic markets.

Profitability Margins

Profitability has turned deeply negative; Net Profit Margin (PAT Margin) plummeted from 2.36% in FY2023 to -63.42% in FY2024. This was driven by the inability to cover fixed costs on a significantly reduced revenue base of INR 15.11 Cr.

EBITDA Margin

EBITDA Margin deteriorated from 6.49% in FY2023 to -52.06% in FY2024. The absolute EBITDA shifted from a profit of INR 10.56 Cr to a loss of INR -7.87 Cr, representing a 174.5% decline in core operational profitability.

Capital Expenditure

Not disclosed in available documents. However, the company is currently facing a material shortage of funds for basic operations, suggesting zero or negligible capital expenditure in the current cycle.

Credit Rating & Borrowing

The company is rated 'IVR D; ISSUER NOT COOPERATING' as of June 2025, indicating a state of default. Total debt stands at INR 37.08 Cr. Borrowing costs are not explicitly stated, but the interest coverage ratio has fallen to -5.51x, indicating an inability to service even existing interest obligations.

⚙️ Operational Drivers

Raw Materials

Key raw materials include cotton seeds (estimated at 70-80% of manufacturing costs), mustard seeds, soya beans, and rice bran used for extraction and trading.

Import Sources

Primarily sourced from Gujarat and surrounding agricultural states in India, given the company's location in Rajkot.

Key Suppliers

Not disclosed in available documents; however, the company typically procures from local farmers and agricultural intermediaries.

Capacity Expansion

Current manufacturing involves cotton seed de-linting, de-hulling, and oil extraction. No expansion is planned as the company is struggling to maintain current operations, evidenced by the 90.7% revenue drop.

Raw Material Costs

Raw material procurement has been severely hampered by a 'shortage of funds,' leading to the massive revenue decline. In FY2023, raw materials and trading goods constituted the bulk of the INR 162.73 Cr turnover, but procurement capacity has since evaporated.

Manufacturing Efficiency

Capacity utilization is estimated to be extremely low (below 10%) given that total operating income fell to just INR 15.11 Cr against a debt of INR 37.08 Cr.

Logistics & Distribution

Distribution of cotton oil and seed cake is primarily focused on the Gujarat region, but volumes have stalled.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company has no immediate growth strategy other than survival. It is seeking to raise funds through a preferential issue of equity/warrants to address a 'shortage of funds' and settle defaults in loan repayments and statutory dues. Growth is contingent on a successful capital infusion and restoring the 'Going Concern' status.

Products & Services

Cotton oil, cotton seed cake, mustard seed oil, rapeseed oil, soya oil, groundnut oil, and De-Oiled Cake (DOC).

Brand Portfolio

Shree Ram Proteins (SRPL).

New Products/Services

No new products are currently being launched due to financial distress.

Market Expansion

Market expansion is currently halted; the company is focused on maintaining its listing and avoiding liquidation.

Market Share & Ranking

Not disclosed; however, the company is a small-cap entity listed on the NSE, previously on the SME platform.

🌍 External Factors

Industry Trends

The edible oil industry is growing at 4-5% annually in India, but SRPL is losing market share due to internal financial mismanagement and 'Issuer Not Cooperating' status with credit agencies.

Competitive Landscape

Faces intense competition from large organized players like Adani Wilmar and local unorganized solvent extraction plants.

Competitive Moat

The company lacks a sustainable moat. Its competitive advantage in regional processing has been neutralized by a total lack of liquidity and a default rating (IVR D).

Macro Economic Sensitivity

Highly sensitive to agricultural output in Gujarat and interest rate cycles, as the company carries INR 37.08 Cr in debt with negative interest coverage.

Consumer Behavior

Shift toward branded edible oils could benefit the company if it can stabilize operations, but current focus is purely on debt resolution.

Geopolitical Risks

Minimal direct impact, though global edible oil price volatility affects domestic margins for cotton and soya oil.

⚖️ Regulatory & Governance

Industry Regulations

Subject to FSSAI standards for edible oils and pollution control board norms for extraction plants. However, the auditor has highlighted defaults in 'statutory dues (including CSR)'.

Taxation Policy Impact

The company is facing challenges in paying statutory dues, which may include GST and corporate tax obligations.

Legal Contingencies

The company is in default of financial covenants of its loan agreements. Auditors have issued an 'Adverse' opinion regarding the 'Going Concern' status, citing material uncertainties that cast significant doubt on the company's ability to continue operations.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Going Concern' status. There is a 100% risk of insolvency if the proposed fund-raising (preferential issue) fails to materialize to cover the INR 37.08 Cr debt and operational costs.