Omnitech Engineering Limited IPO

The company generate significant revenue from its top 10 customers, and in Fiscals 2025, 2024 and 2023, the company's revenue from top 10 customers were 47.87%, 61.27% and 68.88%, respectively, of its revenue from sale of products and services. 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.

The company's revenue from operations outside India constituted 74.95%, 72.97% and 75.12% of its total revenue from operations in Fiscals 2025, 2024 and 2023, respectively. The company's inability to operate or expand its business in such countries, or any adverse changes in the conditions affecting these markets, could adversely impact the company's business, financial condition, results of operations, cash flows, and future growth prospects.

The company's business operations require significant working capital and any failures on its part to effectively manage the company's working capital requirements may require the company to raise additional financing and any inability to do that may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.

The company cater to diverse end use industries and customers in the energy, motion control and automation, industrial equipment systems and others, with a large part of its Order Book being from customers in the energy segment. Any slowdown in these end use industries in particular the energy segment could have an adverse effect on its business, revenue from sale of products and services and financial conditions.

The company's inability to collect receivables and defaults in payment from its customers could result in the reduction of the company's profits and affect its cash flows.

The company's Order Book is not necessarily indicative of future growth. Further, some of the orders that constitute the company's current Order Book could be cancelled, put in abeyance, delayed, or not paid for by its customers, or indicated commitment from customers may not materialise, which could adversely affect its financial condition.

The company is completely reliant on third-party logistics service providers for transport of input materials and finished products and in Fiscal 2025, Fiscal 2024 and Fiscal 2023, the company's total expense towards transportation, freight and forwarding constituted 3.69%, 2.90%, and 3.88%, of its total expenses.

The company relies on limited number of suppliers for its material requirements which constitutes a significant part of the company's total expenses. Any increase in the prices, availability and quality of materials or loss of these suppliers could adversely affect its reputation, business, results from operations, financial conditions and cash flows.

The cmpany imported 42.21%, 8.04% and 4.30% of its materials purchased during Fiscals 2025, 2024 and 2023, respectively, and any restriction or embargo on the sourcing of materials from certain countries could adversely affect the company's business and financial condition.

The company's business is dependent on and will continue to depend on its Manufacturing Facilities and any underutilization of the company's manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.