Apollo Techno Industries Ltd IPO

Geographically, The company revenues is highly dependent on its operations in the India more particularly in few selected States. Any adverse development affecting the company operations in these regions could have an adverse impact on its business, financial condition and results of operations.

The company derives a substantial portion of its revenue from the sale of Horizontal Directional Drilling (HDD) machines, representing 72.50%, 79.41%, 97.39% and 95.66% of the company total sale of finished goods for the six-months period ended September 30, 2024, and the financial years ended on March 31, 2024, 2023 and 2022, respectively and loss of sales due to a reduction in demand for these products would have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its business is dependent on few numbers of clients. The company Top 10 customers contributed 81.85 %, 54.36%, 57.35% and 62.27% of revenue from operations for the period ended September 30, 2024, and the financial years ended on March 31, 2024, 2023 and 2022, respectively. The loss of any of these clients could have an adverse effect on its business, financial condition, results of operations and cash flows.

Several of its key raw materials and components are sourced from a limited group of suppliers, which exposes it to supplier concentration risks. Any restriction in supply or defects in quality could cause delays in project construction or implementation and impair the company ability to provide its products to clients at a price that is profitable to it, which could have a material adverse effect on the company business, financial condition and results of operations.

The Company has experienced negative cash flow in the past and may continue to do so in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

The company is subject to strict compliance of quality requirements by its customers. Any failures in maintaining the company quality accreditations and certifications may negatively impact its brand and reputation which may adversely affect the company business, results of operations, financial condition, cash flows and future prospects.

Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company.

The company business is dependent on its manufacturing units and the company is subject to certain related risks. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations, as well as an inability to effectively utilize the company production capacity, could adversely affect its business, operations results, cash flows, and financial condition.

The company does not have long term agreements with any of its customers, and hence may not realize all of the revenue expected from the company existing or new customers and may not be able to accurately forecast demand for its products and plan production schedules in advance. If the company is unable to predict customer demands and maintain optimal inventory level, there may be an adverse effect on its results of operations, financial condition, and cash flows.

The company operations are subject to high working capital requirements. Its inability to maintain sufficient cash flow, adequate credit facilities and other sources of funding, in a timely manner, or at all, to meet requirement of working capital or pay out debts, could adversely affect the company operations.