Scoda Tubes Ltd IPO

Its Business is primarily concentrated with the company's top 10 customers. Any loss of its single largest customer or any number of its top ten customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial conditions.

The company relies on its network of stockists for the sale and distribution of its stainless-steel tubes and pipes, including one stockist based in Maharashtra, India and one based in the United States markets authorised to exclusively sell its products. Any termination of its sales arrangements with the company stockists or any failures of its stockists to effectively sell or market its products could materially and adversely affect its business, results of operations and financial condition.

Its business and profitability are substantially dependent on the demand for the company products from engineering, EPC and industrial companies, stockists, in and outside of India. Any reduction in the activity and expenditure levels in such customers may adversely affect its business, prospects, results of operations and financial condition.

The company and its Promoters have limited experience in implementing its growth strategy to expand the company welded tubes and pipes business which is presently smaller in scale. Its may not be able to compete successfully and it may be difficult to evaluate its business and future operating results on the basis of its past performance.

Capital expenditure is being used for welded pipes despite low-capacity utilization rate and may not result in increase in revenue from operations.

Its business and profitability are substantially dependent on the availability and cost of its raw materials, and the company is dependent on third-party suppliers/manufacturers/stockists for meeting its raw material requirements. Any disruption to the timely and adequate supply, or volatility in the prices of, raw materials may adversely impact its business, results of operations and financial condition.

Its business involves prolonged working capital days and an extended cash conversion cycle. If the company is unable to anticipate and respond to changes in market demands and customer preferences in a timely and efficient manner, its business, results of operations, cash flows and financial condition may be adversely affected.

The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.

Its contingent liabilities could materially and adversely affect the company business, results of operations and financial condition.

Its revenue from operations is derived in part from the company exports, which the company intend to grow. Its growth plans and exports may be dependent on the policies passed by the governments of the markets into which the company export and any unfavourable change in such policies may adversely affect its business.