538563 - SMT Engineering
Financial Performance
Revenue Growth by Segment
Total revenue from operations grew by 720.24% YoY, reaching INR 21.02 Cr in FY 2024-25 compared to INR 2.56 Cr in FY 2023-24. The company is primarily engaged in trading activities, but is transitioning to manufacturing.
Geographic Revenue Split
Not disclosed in available documents.
Profitability Margins
Net profit margin improved significantly to 2.42% in FY 2024-25 from a negative margin of (67.81%) in FY 2023-24. Return on Equity (ROE) turned positive at 0.57% compared to (26.55%) in the previous year.
EBITDA Margin
EBITDA margin was 12.89% in FY 2024-25, a sharp decline from 62.32% in FY 2023-24, despite the substantial increase in absolute revenue.
Capital Expenditure
Not disclosed in available documents; however, the company amended its main object clause on May 12, 2025, to diversify into manufacturing, which will require future capital expenditure.
Credit Rating & Borrowing
The company reported no interest expense for FY 2024-25, indicating zero or negligible interest-bearing debt. The Interest/Debt Service Coverage Ratio was (100%) due to the lack of interest costs.
Operational Drivers
Raw Materials
Steel scrap, carbon steel, alloy steel, and non-ferrous metals for the newly approved manufacturing operations.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
The company is transitioning from trading to manufacturing metal fabrications, machine tools, turbines, and furnaces. Current installed capacity is not disclosed.
Raw Material Costs
Not disclosed in available documents as the manufacturing shift is subsequent to the FY 2024-25 financial results.
Manufacturing Efficiency
Not disclosed in available documents as manufacturing operations are in the setup phase.
Logistics & Distribution
Not disclosed in available documents.
Strategic Growth
Expected Growth Rate
Not disclosed
Growth Strategy
The company is diversifying into manufacturing metal fabrications, machine tools, turbines, furnaces, and steel-based components. This strategic shift, approved on May 12, 2025, aims to leverage initiatives like 'Make in India' and the 'National Steel Policy' to move away from the volatility of trading-based operations.
Products & Services
Metal fabrications, machine tools, turbines, engines, furnaces, castings, forgings, grinding media, pipes, and tubes.
Brand Portfolio
Not disclosed in available documents.
New Products/Services
New manufacturing lines for turbines, furnaces, and forged components are expected to contribute to future revenue following the object clause amendment.
Market Expansion
The company is targeting the industrial manufacturing ecosystem to offer more stable growth avenues compared to its previous trading focus.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
Not disclosed in available documents.
External Factors
Industry Trends
The industry is shifting towards domestic manufacturing supported by policy initiatives like the National Steel Policy. The company is positioning itself to move from trading to manufacturing to capture value in the evolving industrial ecosystem.
Competitive Landscape
Not disclosed in available documents.
Competitive Moat
The company is attempting to build a moat by transitioning into specialized manufacturing (turbines, machine tools) which offers higher barriers to entry and more scalability than pure commodity trading.
Macro Economic Sensitivity
Highly sensitive to global economic conditions, inflationary pressures, and shifts in monetary policy which influence commodity and capital markets.
Consumer Behavior
Not disclosed in available documents.
Geopolitical Risks
Geopolitical tensions are cited as a primary cause for increased market fluctuations and declining profitability in the commodity segment.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013, Ind AS, and SEBI (LODR) Regulations. Future manufacturing will be subject to industrial standards and pollution control norms.
Environmental Compliance
Not disclosed in available documents, though future foundry and steel melting operations will require strict adherence to environmental norms.
Taxation Policy Impact
Not disclosed in available documents.
Legal Contingencies
Not disclosed in available documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful execution of the transition from a trading-based model to a manufacturing-based model, alongside commodity price volatility risks.
Geographic Concentration Risk
Not disclosed in available documents.
Third Party Dependencies
Not disclosed in available documents.
Technology Obsolescence Risk
The company recognizes technology and products are fairly standardized but relies on human resource talent to maintain a competitive edge.
Credit & Counterparty Risk
Trade receivables turnover ratio improved to 6.49 in FY 2024-25 from 2.00 in FY 2023-24, indicating improved collection efficiency.