Long standing relationships with a large number of customers spread across a wide array of end-user
industries with stringent qualification processes.
Diversified product portfolio catering to varied application industries.
Strategically located Manufacturing Facilities with advanced equipment and robust overlapping processes
which enables high capacity utilisation.
Robust presence in the steel manufacturing industry leveraging on the legacy and experience of our Promoters
and strong domain expertise of our management team.
Track record of financial performance and consistent growth.
The company generates significant revenues from its top 10 customers, and in Fiscals 2026, 2025 and 2024,
revenue from the company's top 10 customers was Rs. 2,029.21 million, Rs. 2,027.16 million and Rs. 1,686.51 million
constituting 38.00%, 39.91% and 37.81%, respectively, of its revenue from operations. The company does not
enter into long term contracts with its customers and the loss of such customers or a significant
reduction in the company's revenue from such customers will have a material adverse impact on its business
and financial condition.
The company's success depends on its continuing relationship with the company's customers and its derives a significant
majority of the company's revenue from repeat customers. In Fiscals 2026, 2025 and 2024, revenue from repeat
customers was Rs. 4,522.77 million, Rs. 4,372.98 million and Rs. 3,570.50 million constituting 84.69%,
86.10% and 80.04%, respectively, of the company's revenue from operations. Loss of one or more of its repeat
customers or reduction in their demand for the company's offerings could adversely affect its business, results
of operation and financial conditions.
The company caters to diverse end use industries and customers in the automobile, infrastructure, Aggregate
Crusher Manufacturer (ACM) and engineering (industrial equipment) which contributed an
aggregate of Rs. 2,063.85 million, Rs. 1,104.50 million, Rs. 980.15 million and Rs. 899.96 million to the company's
revenue from operations constituting 38.65%, 20.68%, 18.35% and 16.85% of its total revenue from
operations during Fiscal 2026, respectively. Any adverse impact on these industries or result in the
loss of customers in these end use industries could have an adverse effect on the company's business, revenue
from operations and financial condition.
A substantial proportion of the company's sales is concentrated in India and sales to customers in India and its
revenues from sales to customers in India was Rs. 4,860.47 million, Rs. 4,859.33 million, and Rs. 4,245.17
million constituting 91.02%, 95.67% and 95.17% of the company's revenue from operations in Fiscals 2026, 2025
and 2024. Any inability to maintain and grow its revenues from the company's sales in India may have an
adverse effect on the company's business, financial condition, result of operation, cash flows and future business
prospects.
The cost of raw materials, including through imports, constitutes the largest component of its
expenses and cost of material consumed was Rs. 2,806.58 million, Rs. 2,716.46 million, and Rs. 2,745.21
million constituting 61.02%, 60.78% and 68.62%, of the company's total expenses during Fiscal 2026, Fiscal
2025 and Fiscal 2024, respectively. Substantial delay or failures to procure necessary raw materials
could have an adverse impact on its operations and the company's ability to meet its customer obligations
which could adversely impact on the company's business and its revenue.
The company has dues which is outstanding to its creditors. Any failures in payment of these dues may have
a material adverse effect on the company's reputation, business and financial condition.
The company has incurred indebtedness which exposes it to various risks which may have an adverse effect
on the company's business, results of operations and financial conditions. Conditions and restrictions imposed
on the company by the agreements governing its indebtedness could adversely affect the company's ability to operates its
business.
The company's Restated Financial Statements contain contingent liabilities aggregating Rs. 35.58 million for
Fiscal 2026 and capital commitments aggregating Rs. 19.29 million for Fiscal 2026. If these contingent
liabilities and capital commitments materialise, it may adversely affect its cash flows and results of
operations.
The company is reliant on raw materials that are procured from third party suppliers with whom the company does not
have long term contracts. Its procurement cost towards the company's top 10 suppliers during Fiscal 2026,
2025, and 2024 was Rs. 1,766.96 million, Rs. 1,385.04 million, and Rs. 1,583.14 million constituting 38.39%,
30.99%, and 39.57% of its total expenses, respectively. Failures to ensure a consistent supply of raw
materials at commercially acceptable prices will adversely affect the company's business and financial condition.
The pricing in the steel industry is subject to market demand, volatility and economic conditions.
Reduction in steel prices may have a material adverse impact on the company's business, results of operations,
and financial conditions.
