Sterlite Electric Limited IPO

The company derives a substantial portion of its revenue from a limited number of customers. The company's top 10 customers accounted for 46.00%, 56.82% and 66.72%, of the company's revenue from operations (continuing operations) in Fiscals 2025, 2024 and 2023, respectively. Loss of relationship with any of these customers or delays or reductions in their orders may have an adverse effect on the company's business, results of operations, financial condition and cash flows.

The company depends on a few suppliers for the supply of its primary raw materials and any disruption in the supply or increase in the prices of raw materials could adversely affect the company's business, financial condition, results of operations and cash flows. The company's top 10 suppliers accounted for 83.22%, 74.63% and 79.53% of its total cost of raw materials in Fiscals 2025, 2024 and 2023, respectively.

A significant portion of the revenue is derived from the sale of overhead conductors, which accounted for 63.94%, 62.83% and 58.37% of our revenue from operations (continuing operations) in Fiscals 2025, 2024 and 2023, respectively. Any adverse changes in the conditions affecting overhead conductor market may adversely impact the company's business, financial condition, results of operations, cash flows and prospects.

The company's manufacturing facilities are subject to operating risks. Any disruption, breakdown or shutdown of its manufacturing facilities may have an adverse effect on the company's business, financial condition, results of operations and cash flows.

The company derives a portion of its segment revenue from external turnover from continuing operations outside India in accordance with Ind AS 108 `Operating Segments' (20.19%, 33.71% and 35.99% of its revenue from operations (continuing operations) in Fiscal 2025, 2024 and 2023 respectively). Any adverse events in the countries where the company export the company's products could have an adverse impact on its business, results of operations, financial condition and cash flows.

The company's products are subject to stringent quality requirements. Any product defects or failures by the company or the company's raw material suppliers to comply with these quality standards could lead to the cancellation of existing and future orders, product recalls warranty claims and exposure to potential product liability claims.

The Company, Promoters, Directors, Subsidiaries and Group Companies are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.

The company's inability to meet its obligations, including financial and other covenants under the company's debt financing arrangements could adversely affect the company's business, results of operations, financial condition and cash flows.

The company requires certain licenses, permits and approvals in the ordinary course of business, and the failures to obtain or retain them in a timely manner may materially adversely affect its operations.

The company operates in a competitive business environment. Failures to compete effectively against the company's competitors and new entrants to the industry may adversely affect its business, financial condition results of operations and cash flows.