SUPREMEENG - Supreme Engg.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment (Engineering). Total income grew by 16.54% YoY, reaching INR 17.42 Cr in FY25 compared to INR 14.95 Cr in FY24.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company is headquartered in Navi Mumbai, Maharashtra, and maintains a registered office in the MIDC Complex.
Profitability Margins
The company reported a Net Loss of INR 11.81 Cr for FY25, resulting in a negative Net Margin of -67.78%. This is a slight deepening of losses compared to the INR 11.63 Cr loss in FY24.
EBITDA Margin
EBITDA is negative due to an operating loss before tax of INR 9.50 Cr. After adding back depreciation of INR 1.77 Cr and finance costs of INR 1.17 Cr, the EBITDA loss stands at approximately INR 6.56 Cr.
Capital Expenditure
Historical Capex for FY25 was minimal at INR 0.73 Lakhs for property, plant, and equipment, reflecting a 93.36% decrease from the INR 11.00 Lakhs spent in FY24 due to severe liquidity constraints.
Credit Rating & Borrowing
The company's secured loan accounts were classified as Non-Performing Assets (NPA) on August 19, 2021. Borrowings stand at INR 76.66 Cr, with the company having stopped repayment of principal and interest since the NPA classification.
Operational Drivers
Raw Materials
Steel and various alloys (implied by the company's focus on special steels and heat treatment). Specific percentage of total cost is not disclosed, but inventory value was diminished by INR 4.25 Cr during the year.
Capacity Expansion
Current Property, Plant, and Equipment is valued at INR 16.22 Cr. No planned expansion is mentioned as the company is currently in a 'revival process' and 'debt-ridden'.
Raw Material Costs
Cost of materials consumed was INR 1.64 Cr in FY25, representing 9.41% of total revenue. Inventory levels decreased by INR 2.39 Cr during the period.
Manufacturing Efficiency
Capacity utilization is not disclosed, but the company incurred continuous losses, suggesting low efficiency or underutilization of its asset base of INR 29.67 Cr.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
The company is focused on a 'Revival Process' rather than expansion. This includes a revival strategy to settle with bankers, restructuring existing debt, and attempting to raise new equity capital to address the negative net worth of INR -88.90 Cr.
Products & Services
Special steel products, heat-treated steel components, and engineering alloys sold under the Supreme Engineering brand.
Brand Portfolio
Supreme Engineering, Supreme Steels.
New Products/Services
No new product launches disclosed; focus is on maintaining existing operations under a going concern uncertainty.
Market Expansion
No expansion plans disclosed; the company is currently struggling to meet existing statutory and financial obligations.
External Factors
Industry Trends
The special steel industry is evolving toward high-performance alloys, but the company's positioning is weakened by its inability to invest in new technology or maintain statutory compliance.
Competitive Landscape
The company faces competition from other special steel manufacturers, but its competitive position is severely compromised by its negative net worth and NPA status.
Competitive Moat
The company's moat in heat treatment and special steels is currently non-sustainable due to the 'material uncertainty' regarding its ability to continue as a going concern.
Macro Economic Sensitivity
Highly sensitive to interest rates and credit availability due to its INR 76.66 Cr NPA status and the need for debt restructuring.
Consumer Behavior
Not applicable for this B2B industrial segment.
Geopolitical Risks
Trade barriers could impact the export of special steel products, though specific geographic exposure is not detailed.
Regulatory & Governance
Industry Regulations
The company is in violation of Section 203 of the Companies Act 2013 for failing to appoint a Company Secretary and Section 134(1) for financials not being signed by all required Key Managerial Personnel.
Taxation Policy Impact
The company has not filed Income Tax Audit reports for FY 2019-20 and FY 2021-22, leading to potential penalties under Section 271B of the Income Tax Act.
Legal Contingencies
Pending statutory dues include unpaid TDS, PF, and Professional Tax. The company has created an Expected Credit Loss (ECL) provision of INR 1.08 Cr for outstanding receivables.
Risk Analysis
Key Uncertainties
The primary risk is the 'Going Concern' status, as current liabilities (INR 99.75 Cr) exceed total assets (INR 29.67 Cr) by over 300%.
Geographic Concentration Risk
Operations are concentrated in Navi Mumbai, Maharashtra, making it sensitive to local industrial regulations and utility costs.
Third Party Dependencies
High dependency on bankers for the 'Revival Process' and on parties for ledger confirmations to verify trade payables and receivables.
Technology Obsolescence Risk
Risk is high as the company has had near-zero capital expenditure (INR 0.73 Lakhs) to upgrade its engineering facilities.
Credit & Counterparty Risk
High risk; the company has long-outstanding receivables and has provided INR 1.08 Cr in additional ECL during FY25 to cover potential defaults.