bajaj steel industries ltd share price Management discussions


The strong vision and dedication of the management & the employees and over six decades of experience and expertise have positioned the Company as one of the largest manufacturers of cotton ginning and pressing machineries. The Company is having distinction of being the only company in the world with capabilities for manufacturing cotton ginning machines for all the four major cotton ginning technologies being used in the world.

Further, with the passage of time and to cope up with the growing industrial demand, the Company has developed itself as a multi-product engineering company that is presently working across the following industrial divisions:

Ginning Machinery Division

The ginning machinery division of the Company manufactures and supply machineries, equipment, spare parts and other allied equipment related to cotton ginning and processing units of all the four cotton ginning technologies i.e. single roller gins, double roller gins, rotary knife roller gins (rotobar gins) and saw gins for different varieties of seed cottons, under one roof.

The Continental Eagle Corporation (CEC) division that is a part of the ginning machinery division manufactures & supplies all the products based on CEC, USA design or improved designs thereof including Saw Gins, Rotobar, Delinting, Decorticating, Cotton Cleaning, Cotton Conveying, Cotton Conditioning, Conveyors, Rotobar gin, spare-parts, high capacity humidification systems, dryers, and all other equipment required to be fitted in saw gin, rotobar gin based factories and delinting and decorticating factories.

The Company is expanding its footprints in the export market of these machineries. Recently it has captured/tapped new geographical areas/countries like China, Paraguay, and Mexico, among others. Thus, in the medium and long term, the Company expects to enhance its export business for this division, contributing to its growth in a positive manner.

Infrastructure Division

The infrastructure division of the Company is engaged in the business of design, fabrication, manufacture and erection of pre-engineered buildings, civil industrial buildings, warehouses, K-houses, and solar module mounting structures, among others. This division has in-house design and engineering capabilities to scale new frontiers of technical excellence and is driven by its own sales, marketing, technical, and support team.

The Company also provides customised solutions for pre-fabricated buildings, PEB industrial shed, pre-engineered school buildings, pre-engineered warehouse structures, agricultural warehouses, stadium, pre-engineered industrial sheds for pharmaceutical and food processing units, among others. Over the period, it has successfully executed over 500 steel building projects (domestic and overseas). It is also executing EPC projects for clients like Indian Oil Corporation Limited, Maharashtra State Warehousing Corporation, Nuclear Fuel Complex and Maha-Metro projects, among others. Further, due to cost effectiveness, speed of construction and flexibility in design, customers are getting more inclined towards PEB buildings and structures rather than going for conventional civil structures. Thus, there is a reasonably good scope for growth in this division.

Electrical Division

The Company has in place electrical panel division that manufactures & sells electrical panels including power control centres, Motor Control Centres, APFC panels, LT & HT panels, IMCC panels, drive panels, PLC & SCADA panels, AMF panels, synchronisation panels, control panels, lighting panels, power distribution boards, customised panels and panel cabinets. The Company also manufactures and supplies bus truncking system, intelligent motor control centre and SVGR system for harmonic control, among others. The said division of the Company has gained incredible reputation due to its quality products and unique designs. Further, the said division has manufacturing/quality certifications such as IEC 61439 Part 1 and 2, UL certification and IS 8623 certification. Due to quality consciousness and timely delivery, the Company is gaining a good reputation as an electrical panel manufacturer and expecting a reasonably good growth in this sector in the medium and long term.

Heavy Engineering Division

The Company is also engaged in the manufacturing and supply of heavy equipment and structural fabrication for various steel and power plants and provides other customised fabricated structures, as per the clients requirement. The heavy equipment division (HED) is capable enough to fulfil the customised fabrication/ structural requirements of any original equipment manufacturer (OEM) belonging to sectors like steel, cement, mineral, and power, among others. Further, the said division is also involved in the manufacturing of its new product line of aerobridges and passenger boarding system. Due to the availability of infrastructure and the Companys expertise in heavy fabrication and designing, it expects a reasonably good growth in this sector in the medium and long term.

Fire Fighting Division

This division is carrying the business of designing and installation of firefighting systems, including fire extinguishers, hydrant systems, sprinkle systems and fire diversion systems, among others. With the increased compliances of the relevant laws for fire safety, the demand in this Industry is expected to grow.

Other Products

The Company also manufactures various ancillary and other products such as specialty conveyors, office furniture, steel doors, industrial fans and impellers, hydraulic cylinders, ducting system, cutting of steel and other material on job-work basis and also for the internal purposes. Further, the Company is putting its efforts in growing the business of these products.


(Rs. In Lakhs)

Particulars Standalone Consolidated
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Net Revenue (Including Other Income) 48,880.39 42,491.90 54,851.07 45,018.82
Operating Profit (PBIDT) 9,217.56 5,946.08 10,649.58 6,524.18
Profit Before Tax 7,998.97 4,317.08 9,399.64 4,871.27
Profit After Tax 5,687.68 3,243.86 6,750.49 3,649.33
Profit After Other Comprehensive Income 5,668.65 3,316.68 6,731.46 3,722.15
Earnings Per Share (Basic & Diluted) 109.01 63.78 129.45 71.58


Ratios on Standalone Basis FY 2022-23 FY 2021-22
Operating Profit Margin (%) 19 14
Net Profit Margin (%) 11.64 7.63
Debt Equity Ratio (x) 0.15 0.30
Interest Coverage Ratio (x) 2.06 1.32
Return on Equity (%) 26 19
Current Ratio(x) 1.96 1.94



Diversification and Venturing into New Business Segment

The Company has expanded significantly by introducing a range of new products. One notable addition is the diesel fire heater, designed to effectively reduce moisture content in raw cotton. Another innovative product is the cotton seed dryer, specifically created for reducing moisture in cotton seeds.

Additionally, the Company has successfully manufactured and supplied passenger boarding bridges, an essential equipment at airports that enables passengers to board aircraft seamlessly. These new product offerings are expected to contribute to the Companys growth and have helped diversifying its presence in various markets.


The ginning machineries/equipment are manufactured under the Companys own developed models / drawings and technology acquired from Continental Eagle Corporation, USA. Further, the Company has technical collaboration with Central Institute for Research on Cotton Technology (CIRCOT) that helps the Company in terms of continuous research and innovation. With the continuous innovation, the Company is able to leverage better position in the market over its competitors. In the other products also, the Company is using the latest & innovative technologies as per the industrial norms, requirements and prevailing practices.

The Company has supplied its machineries /equipment to various countries including advanced countries such as USA, Greece, Australia apart from Uzbekistan, South Africa, Brazil, Benin, Burkina Faso, Mali and many other countries. The Company has proven its technological strength across the globe.


Technological Obsolescence

Technological progress can make certain technologies or manufacturing methods outdated. It is therefore imperative for the Company to allocate resources for research and development (R&D). This will enable them to keep up with technological advancements and stay ahead in the market. To overcome this kind of threat, the Company is continuously undertaking innovation, research and development practices.

Cotton Production

The cotton ginning business is dependent upon the condition of cotton production and climate during the year. If cotton production is adversely affected, it may affect the operation of the related division of the Company.

Fluctuating Cotton Prices

Cotton prices can be volatile due to various factors such as weather conditions, international demand, and market dynamics. The price fluctuations may impact the profitability of ginning and pressing business. The sudden changes in cotton prices can create challenges for the business, affecting its revenue, operational costs, and overall financial stability. As a result, ginning and pressing business needs to carefully monitor market trends and adopt strategies to mitigate the risks posed by price volatility in order to maintain their competitiveness and sustainability in the industry.


Certain risks are part of the business such as procurement risk, export risk, and credit risk, among others. Considering the present situation and market outlook, there does not seem to be any major risk, threat and concern for the business for the FY 2023-24. The Company has already initiated actions and developed various strategies to identify and mitigate routine and exceptional risks that may potentially cause financial or social dent to the Company.

The challenges ahead are to find out ways and means to reduce the energy consumption, to bring down the processing costs and to further increase the productivity and efficiency of the machines and workforce used for each level of operation and to scale up the sales of diversified engineering products for continuous growth.


The Company attributes its market success and dominance to its dedicated employees who have effectively tackled challenges posed by evolving quality, customer, and global expansion needs. Some of the key HR focus areas have been providing specialised training like welding skills enhancement for over 56 employees, combating talent shortage through tie-ups with institutes and induction programmes. In addition, they include comprehensive talent management spanning recruitment via job portals, consultants, ads and fairs, based on detailed role profiles, virtual/ personal interviews, job rotations, training, rewards for outstanding work, industry-benchmarked compensation and more.

For gender inclusion, hiring, promotion, and compensation are based purely on performance and expertise irrespective of gender. Women employees represent various departments including the Board and their skills are honed through training programmes. The Companys people-centric approach focussing on upskilling, motivation, and meritocracy empowers its human capital to drive continued success.


The Company is aggressively expanding its business activities to become a multi-product engineering organisation, guided by its vision to lead the industry with innovation and sustainable growth. It is further enhancing its export footprint for the machinery division by entering new geographies.

In the medium to long term, the Company expects growing exports to boost overall growth. In terms of infrastructure division, the Company anticipates reasonable growth given the popularity of PEB and its strong reputation. The electrical division is also gaining good market reputation as a quality panel manufacturer with timely delivery. Further, the HED division is also entering into the new product line of passenger boarding system & aerobridge. By leveraging its engineering excellence across divisions and increasing exports and tapping growth opportunities, the Company aims to entrench its leadership position as a diversified engineering entity serving diverse global markets.

Internal Control Systems and their Adequacy

The Company has established internal control systems that are suitable for its size and nature of business. These systems and controls are implemented throughout the Company, covering various financial and operational functions. The Internal Audit Department conducts regular audits at different locations and functions based on a pre-defined audit plan. Key observations from internal audits are carefully examined during Audit Committee meetings, and necessary action is taken accordingly Some notable features of the internal control systems are as follows:

1. Periodic review of systems and procedures to adapt to the Companys expanding operations and increasing complexity

2. Implementation of measures to record and safeguard assets against losses or unauthorised disposal

3. Regular physical verification of fixed assets and inventory

Environment Health and Safety

The Company has undertaken various effective measures to reduce carbon emissions. Some of these include replacing all halogen lights with LEDs across locations, installing variable frequency drives in lathe and hoist systems, and using energy-saving fans and bulbs in plants and offices to optimise overall energy consumption. The Company has also set up a sewage treatment plant to treat and recycle sewage water for gardening needs. Alongside this, its main focus areas to reduce environmental impact include using solar energy for clean power generation, maximising captive power consumption, and driving plantation efforts. As the Company progresses in FY 2023-24, its sustainability priorities will continue to include scaling up its usage of solar energy, increasing captive power intake through renewable sources, and expanding its green footprint through tree plantation drives. By continuously improving energy efficiency, recycling resources, and adopting renewable energy, the Company aims to become future ready in green manufacturing.

Cautionary Statement

The Management Discussion and Analysis Report includes statements that pertain to the Companys objectives, projections, estimates, and expectations. It is important to note that these statements may be considered ‘forward-looking statements under applicable laws and regulations. It should be understood that the actual results may differ from what is either explicitly expressed or implied in these statements. Various factors can significantly impact the Companys performance, such as economic developments within the country, demand and supply conditions in the industry, changes in Government regulations and tax laws, as well as other factors including litigation and industrial relations.