💰 Financial Performance

Revenue Growth by Segment

Revenue from operations was INR 0 in both FY24 and FY23, representing a 0% growth rate as the company has transitioned to a non-operating entity. The company is currently focused on realizing assets rather than active trading.

Geographic Revenue Split

Not disclosed in available documents as the company has ceased active trading operations across its 11 branch offices in India.

Profitability Margins

Net Profit grew by 60.67% YoY to INR 5,107.23 Lacs in FY24 from INR 3,178.79 Lacs in FY23. This profitability is driven entirely by 'Other Income' (INR 9,599.26 Lacs) and remeasurements of defined benefit plans rather than core trading operations.

EBITDA Margin

Not applicable as Revenue from Operations is zero. However, Profit Before Tax (PBT) stood at INR 5,132.13 Lacs in FY24, a 42.53% increase from INR 3,600.74 Lacs in FY23, primarily due to a 12.62% increase in Other Income.

Capital Expenditure

Historical capital expenditure for FY24 was INR 0, down from previous years as the company is on a non-going concern basis and is classifying existing Property, Plant, and Equipment (PPE) as 'Held for Sale'.

Credit Rating & Borrowing

STC is a Miniratna Category-1 CPSE. Historically, the company had an overall gearing of 17.46 times in FY19. Current documents indicate a massive non-provision of interest on bank loans amounting to INR 3,973.57 Cr, which suggests severe credit stress and default on consortium bank advances.

⚙️ Operational Drivers

Raw Materials

Not applicable as STC is a trading house, not a manufacturer. Historically traded bulk commodities like rice, wheat, sugar, pulses, edible oils, coal, and bullion.

Import Sources

Not disclosed for the current period as operations are suspended; historically sourced globally for Government of India requirements.

Key Suppliers

Not disclosed in available documents due to the non-operating status of the company.

Capacity Expansion

No planned expansion. Current focus is on the disposal of tank farms, warehouses, and godowns at various locations to realize value on a non-going concern basis.

Raw Material Costs

Not applicable. Employee benefit expenses, the primary operational cost, decreased by 6.67% to INR 3,336.87 Lacs in FY24 from INR 3,575.32 Lacs in FY23.

Manufacturing Efficiency

Not applicable as there are no manufacturing operations.

Logistics & Distribution

Not applicable for the current non-operating period.

📈 Strategic Growth

Expected Growth Rate

0%

Growth Strategy

There is no growth strategy; the company is operating on a 'non-going concern' basis as per the decision of the administrative ministry (Ministry of Commerce & Industry). The strategy is limited to realizing assets and settling pending contracts and liabilities.

Products & Services

Historically provided import/export services for bulk commodities (bullion, coal, fertilizers, edible oils). Currently provides property rental services for its owned warehouses and office spaces.

Brand Portfolio

STC (State Trading Corporation of India).

New Products/Services

None. The company has been resolved to continue as a non-operating company since FY2021-22.

Market Expansion

None. The company is currently contracting its footprint.

Market Share & Ranking

Formerly a leading Star Trading House; currently has 0% market share in active trading due to non-operating status.

Strategic Alliances

The company operates under the administrative control of the Ministry of Commerce & Industry, GOI, which holds a 90% stake.

🌍 External Factors

Industry Trends

The wholesale trading industry for CPSEs is shifting towards consolidation or closure of non-viable entities. STC's positioning is 'non-going concern', reflecting a total withdrawal from the market.

Competitive Landscape

Competitors like MMTC (which currently has additional charge of STC's Finance Director) are also facing similar restructuring or downsizing mandates from the GOI.

Competitive Moat

The historical moat was the government mandate for canalized imports. This moat has completely eroded with the shift to a non-operating status and the removal of canalization monopolies.

Macro Economic Sensitivity

Highly sensitive to Government of India policy decisions regarding Central Public Sector Enterprises (CPSEs) and the specific mandate of the Ministry of Commerce.

Consumer Behavior

Not applicable as the company does not serve retail consumers.

Geopolitical Risks

Geopolitical shifts no longer impact active trade but may affect the valuation of international-linked assets or pending legal claims.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Department of Commerce guidelines and CPSE regulations. The company is currently in violation of SEBI LODR Regulation 17, 18, 19, and 20 regarding Board composition.

Environmental Compliance

Not a significant factor for a non-operating trading entity; ESG costs are not disclosed.

Taxation Policy Impact

Current tax for FY24 was INR 793.25 Lacs, while tax related to earlier years resulted in a credit of INR 768.35 Lacs.

Legal Contingencies

The company faces a massive contingent liability/understated loss of INR 3,973.57 Cr due to non-provision of interest on Cash Credit and Packing Credit advances from a consortium of banks. Additionally, it faces SEBI fines of INR 12,05,960 for non-compliance with independent director requirements.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Material Uncertainty related to Going Concern'. The company is being audited on a realization basis, meaning assets may not fetch their carrying values if liquidated quickly.

Geographic Concentration Risk

Operations were concentrated in India (11 branches), but the primary risk is now concentrated in the New Delhi headquarters where legal and regulatory issues are managed.

Third Party Dependencies

High dependency on the Government of India for financial support and the consortium of banks for debt settlement.

Technology Obsolescence Risk

The company uses Tally ERP which is not integrated with its HR or Payroll software, leading to manual errors and a qualified audit opinion.

Credit & Counterparty Risk

The company has significant trade and other receivables (INR 44.77 Lacs adjustment in FY24) which are subject to Expected Credit Loss (ECL) judgments.