VIKASPROP - Vikas Proppant

📊 NSE: VIKASPROP 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 15:07

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 239.2% YoY from INR 695.62 Lacs in FY20 to INR 2,359.85 Lacs in FY21. Segment-specific growth for proppants versus granite blocks is not separately disclosed.

Profitability Margins

Net margin declined sharply from a 56.4% profit in FY20 to a -48.3% loss in FY21, primarily due to a surge in material costs and other operational expenses.

EBITDA Margin

EBITDA margin turned negative at approximately -48.2% in FY21 compared to a positive margin in FY20, reflecting a loss before tax of INR 1,138.70 Lacs.

Capital Expenditure

The company realized INR 2,362.35 Lacs from the sale of fixed assets and capital work-in-progress (CWIP) during FY21, indicating a divestment rather than expansion phase.

Credit Rating & Borrowing

Credit rating not disclosed. Borrowing costs were negligible with interest expenses of INR 0.01 Lacs in FY21 on total liabilities of INR 20,124.87 Lacs.

⚙️ Operational Drivers

Raw Materials

Granite cuttings and waste materials, which represent the primary input for proppant manufacturing, accounting for 94.7% of total revenue (INR 2,236.28 Lacs) in FY21.

Import Sources

Sourced domestically from Indian states including Rajasthan, Haryana, Tamil Nadu, Andhra Pradesh, Karnataka, and Odisha.

Capacity Expansion

Current installed capacity is not disclosed; however, auditors noted that fixed assets were non-operational during FY21, resulting in zero depreciation provision.

Raw Material Costs

Raw material costs surged from zero in FY20 to INR 2,236.28 Lacs in FY21, representing 94.7% of revenue, indicating a restart of manufacturing activity or high procurement costs.

Manufacturing Efficiency

Capacity utilization is effectively 0% as the company's fixed assets were reported as non-operational by auditors as of March 31, 2021.

📈 Strategic Growth

Growth Strategy

Growth is contingent on the implementation of the resolution plan filed by Mr. Kailashchand Mittal with NCLT Chandigarh, which involves restarting idle manufacturing facilities and leveraging India's granite reserves for the global proppant market.

Products & Services

Oil fracturing proppants and Granite blocks.

Brand Portfolio

Vikas Proppant & Granite.

Market Expansion

Targeting the niche global expanding market of oil fracturing proppants.

🌍 External Factors

Industry Trends

The industry is shifting towards sustainable proppant sourcing; the company's use of granite waste positions it to benefit from circular economy trends in the mining sector.

Competitive Moat

Cost leadership moat through the utilization of granite waste (cuttings) which significantly reduces raw material costs compared to traditional ceramic proppants.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices and hydraulic fracturing activity, as proppant demand is directly linked to oil and gas exploration volumes.

Consumer Behavior

Shift towards more efficient hydraulic fracturing techniques in the oil industry is increasing the demand for high-quality proppants.

Geopolitical Risks

Potential trade barriers on granite exports could impact the sourcing of raw material waste or the export of final proppant products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are currently governed by the Insolvency and Bankruptcy Code (IBC) and oversight by the National Company Law Tribunal (NCLT).

Taxation Policy Impact

The company has an outstanding income tax liability of INR 1,198.25 Lacs as of March 31, 2021, pertaining to previous years.

Legal Contingencies

Pending Corporate Insolvency Resolution Process (CIRP) at NCLT Chandigarh; Ninth CoC meeting held April 15, 2023, to discuss a 90-day extension of the timeline.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the approval and execution of the resolution plan to resume operations, alongside a material weakness identified by auditors regarding non-provision of depreciation.