RK Steel Manufacturing Company Limited IPO

A significant portion of its revenue is derived from operations in a limited number of geographies, and any adverse developments affecting such regions could have an adverse impact on the company's business, results of operations, cash flows and financial condition.

The company relys substantially on its top 10 suppliers for procurement of raw materials, and any shortage, delay or disruption in their supply could materially impact the company's business, financial condition, results of operations and cash flows.

The company deriveds 34.78%, 35.01%, and 42.08% of its revenue from operations from the company's top 10 customers in Fiscals 2025, 2024 and 2023 respectively, and the company does not have long-term contracts with all of these customers. The loss of one or more such customers or any reduction in their purchases could adversely affect the company's business, results of operations, cash flows and financial condition.

The company operates from a single manufacturing facility located at Perundurai, Tamil Nadu, India and any disruption at this facility could adversely affect its operations, business and financial condition.

The company derives a substantial portion of its revenue from the sale of the company's welded steel pipes and tubes particularly galvanized plain pipes and any reduction in demand for these products may adversely impact its business, financial condition, results of operations, and cash flows. Further, the company's inability to diversify its product portfolio may constrain the company's growth and profitability.

The company's Profit After Tax ("PAT") and Earnings Before Interest, Depreciation, Tax and Amortisation ("EBITDA") declined significantly in Fiscal 2025 despite an increase in revenue from operations, indicating margin contraction and reduced profitability, which may adversely affect its business, financial condition and results of operations.

The company's business is a high volume-low margin business. Any disruption in turnover or inability to grow revenues consistently could materially and adversely affect its business, results of operations, and financial condition.

Under-utilization of its production capacities could have an adverse effect on the company's business, future prospects and future financial performance.

The company's business is working capital intensive, and any inability to optimize its working capital cycle or rationalize the company's indebtedness may materially and adversely affect its financial condition, profitability, and growth prospects.

The company's EBITDA and PAT margins have remained persistently lower than those of the company's listed industry peers, indicating relatively lower operational profitability and efficiency, which may adversely affect its competitiveness, financial condition and results of operations.