You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.
Our Company was originally incorporated as ‘ JD Cables Private Limited a private limited company under the Companies Act, 2013 at Kolkata, West Bengal, pursuant to a certificate of incorporation dated June 12, 2015, issued by the Registrar of Companies, West Bengal (“RoC”). Thereafter, name of our Company was changed from ‘JD Cables Private Limited to ‘JD Cables Limited, consequent to conversion of our Company from private to public company, pursuant to a special resolution passed by the shareholders of our Company on October 28, 2024 and a fresh certificate of incorporation dated December 02, 2024 was issued by the Registrar of Companies, Central Processing Centre. The Corporate identification number of our company is U29253WB2015PLC206712.
We have consistently grown in terms of our revenues over the past years were ?4,085.54 lakhs in F.Y.2022-23, ? 10,083.33 lakhs in the FY 2023-24 and 25,052.58 lakhs for the FY 2024-25. Our Net Profit after tax for the above - mentioned periods are ^31.96 lakhs, ? 457.98 lakhs and ? 2,215.30 lakhs respectively.
Based on Financial Statements:
(Rs In Lakhs)
Key Performance Indicator |
For the period ended March 31, 2025 | For the year ended March 31, 2024 | For the year ended March 31, 2023 |
Revenue from Operations (1) |
25,052.58 | 10,083.33 | 4,085.54 |
Growth in Revenue from Operations (%) |
148.46% | 146.81% | (25.17%) |
Total Income |
25,069.51 | 10,085.44 | 4,086.20 |
EBITDA (2) |
3,414.47 | 722.21 | 80.63 |
EBITDA Margin (%) (3) |
13.62% | 7.16% | 1.97% |
Net Profit for the Year (4) |
2,215.30 | 457.98 | 31.96 |
PAT Margin (%) (5) |
8.84% | 4.54% | 0.78% |
RoE (%) (6) |
117.17% | 101.65% | 31.28% |
Return on Capital Employed (7) |
43.64% | 27.85% | 15.40% |
Debt-Equity Ratio (8) |
1.53 | 2.27 | 3.25 |
1. Revenue from Operations: This represents the income generated by the Company from its core operating operation. This gives information regarding the scale of operations. Other Income is the income generated by the Company from its non-core operations.
2. EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax for the year and adding back interest cost, depreciation, and amortization expense.
3. EBITDA margin is calculated as EBITDA as a percentage of Total Income.
4. Profit for the year represents the restated profits of the Company after deducting all expenses.
5. PAT Margin (%) is calculated as Profit for the year as a percentage of Revenue from Operations.
6. Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year/period divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholde rs funds) for the year.
7. Return on capital employed calculated as Earnings before interest (excluding lease liabilities and other borrowing cost) and taxes divided by capital employed as at the end of respective year. (Capital employed calculated as the aggregate value of total equity, total debt and deferred tax liability)
8. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.
Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:
Regulatory Framework
We have obtained all regulatory permissions which are necessary to run our business, Further, some of the approvals are granted for fixed periods of time and need renewals, which are obtained in the course of business, however, there may be change in statutory regulations at any time which cannot be predicted by us. There can be no assurance that the change in regulations will not impact our operations in the future.
Ability of Management
Our success depends on the continued services and performance of the members of our management team and other key employees. Competition for senior management in the industry is intense, and we may not be able to retain our existing senior management or attract and retain new senior management in the future. The loss of any member of our senior management or other key personnel may adversely affect our business, results of operations and financial condition.
Market & Economic conditions
India is one of the largest economies and is growing at a rapid pace. But in this globalised economy, all the businesses face an uncertain level of volatility from unexpected global events which ranges from global pandemics to wars, to weather changes to supply chain disruption, which may change the economic dynamics and the purchasing capability of the end customers. At the time of market slowdown, the demand falls which has adverse impact on our business.
Competition
We operate in a competitive atmosphere. Our competition varies by market, geographic areas and type of products. Our Company may face stiff competition from domestic as well as global market as the dynamic changes. Some of our competitors may have greater resources than those available to us. While service quality, technical ability, performance records, etc. are key factors in client decisions among competitors, however, price & quality are the deciding factor in most cases. Further, this industry is fragmented with many small and medium sized companies and entities, which manufactures some of these products at various levels, which may adversely affect our business operation and financial condition. Further, there are no entry barriers in this industry and any expansion in capacity of existing market players would further intensify competition. Moreover, as we seek to diversify into new geographical areas, new territories, new emerging markets, we may face competition from competitors that have a pan- India presence and also from competitors that have a strong presence in regional markets. The markets in which we compete and intend to compete are undergoing, and are expected to continue to undergo, rapid and significant change. We expect competition to intensify as technological advances and consolidations continue. These competitive factors may force us to reduce rates, and to pursue new market opportunities. Increased competition could result in reduced demand for our products, increased expenses, reduced margins and loss of market share. Failure to compete successfully against current or future competitors could harm our business, operating cash flows and financial condition.
COVID-19 Pandemic
Since the onset of the COVID-19 pandemic in March 2020, our Companys operations have been affected as our employees faced the threat of getting infected. In 2020, cases of the novel corona virus started rapidly increasing in India, which led the government of India to impose a nationwide lockdown. The spread of Covid-19 and its recent developments have had and might continue to have repercussions across local, national and global economies. To prevent the spread of Covid-19 and to comply with the restrictions, we had to temporarily suspend our operations in order to follow the Governments norms. We continuously monitored the economic conditions and have outlined sufficient measures to combat the pandemic situation at our business premises. Once the lockdown was lifted, our operations restarted in full swing. Initially we did find a little hiccup in finding workers but because of our enterprising organization, we were able to source quality workforce and we were able to train them and we restarted our operations. After lifting the lockdown and resuming our operations the demand in our industry abruptly increased from the different sectors and we attained the highest production during the partial year 2020-21 and FY 2021-22. The demand after pandemic ultimately nullified the impact of shutdown during COVID 19 pandemic. The future impact of COVID-19 or any other severe communicable disease on our business and results of operations depends on several factors including those discussed in the chapter “Risk Factors” beginning on Page No. 28. We are continuing to closely monitor the economic conditions and the effect of COVID-19 and have outlined certain measures to combat the pandemic situation and to minimize the impact on our business.
Red Sea Crisis
The Israel and Palestine was resulted in getting the commercial cargo stopping the Suez Canal route and taking the longer route resulting in transit time of cargo and also the freight cost being higher than standards for the export shipments. Although there was
minimal effect on the export orders due to this situation but any similar situation which can affect international cargo movement can also affect the companys export performance.
Significant Developments after March 31, 2025 that may affect our Future Results of Operations
The Directors confirm that there have been no other events or circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus which materially or adversely affect or is likely to affect the business or profitability of our Company or the value of our assets, or our ability to pay liabilities within next twelve months.
a. Basis of accounting and preparation of financial statements
The restated summary statement of assets and liabilities of the Company as at March 31, 2025, March 31, 2024 and March 31, 2023 and the related restated summary statement of profits and loss and cash flows for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 (herein collectively referred to as (“Restated Summary Statements”) have been compiled by the management from the audited Financial Statements of the Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the “Act”) read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”) issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) (“Guidance Note”). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the BSE in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements.
The financial statement of the company has been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 the Companies Act, 2013, read with Rule 7 of the Companies Accounting Rules, 2014 and the relevant provisions of the Companies Act ("the 2013 Act"), 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.
All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.
b. Inventories
Inventories are valued at lower of cost or net realizable value.
1. Cost of raw materials includes the purchase price as well as incidental expenses such as freight and other cost incurred in bringing them to their respective present location and situation.
2. Work in Progress & Finished goods are valued at lower of Weighted Average Cost or Net Realisable Value.
3. Scrap Generated is valued at Net Realisable Value.
4. Stores, Spares & Packing Materials: At Cost.
c. Property. Plant and Equipment and Depreciation
Property, Plant and equipment are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The Cost of Property, Plant and equipment comprises its purchase price, borrowing cost, and any other cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day- to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
Depreciation on Property, Plant and equipment has been provided as per Schedule II to the Companies Act 2013 and depreciation is charged based on useful life of the assets as prescribed in schedule II to the Companies Act, 2013. Intangible assets are amortized over their respective individual estimated useful lives on straight line basis.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
d. Depreciation/Amortisation
Depreciation is provided on a pro-rata basis on a straight line method at the rate determined based on estimated useful lives of tangible assets wherever applicable, specified in schedule - Il to the Act.
Class of assets |
Estimated Useful life |
Factory Shed |
30 years |
Plant & Machinery |
15 years |
Furniture and Fixtures |
10 years |
Vehicles |
8 years |
Computer & Printer |
3 years |
Electrical installation |
10 years |
e. Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and it can be reliably measured. Revenue to the extent considered receivable, unless specifically stated to be otherwise, are accounted for on mercantile basis.
Sale of Goods
Revenue from Operations includes sale of goods including cartage is recognised in the statement of profit and loss account when the significant risk and reward of ownership have been transferred to the buyer. The Company collects Goods and Services Tax on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.
Interest income
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.
Other Income
Other income is recognized on accrual basis.
f. Expenditure
Expenditure is accounted on accrual basis and provision is made for all known losses and liabilities.
g. Employees Retirement Benefits
(i) Short Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
(ii) Post-Employment Benefit Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Companys contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related services.
Defined Benefit Plans
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit (PUC) method at the end of each year. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. Accumulated gratuity, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit and which is expected to be carried forward beyond 12 months, as long term employees benefit for measurement purpose.
h. Taxation
1. Current Tax is determined on the profit of the year in accordance with the provisions of the Income Tax Act, 1961.
2. Deferred Tax is calculated at the rates and laws that have been enacted or substantively enacted as at the Balance Sheet date and is recognized on timing difference that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized.
i. Borrowing Costs
Borrowing cost includes interest, amortization of ancillary cost incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a sub stantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
j. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognized, but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
k. Earnings Per Share
The basic earnings per share is calculated by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the year unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Anti-dilutive effect of any potential equity shares is ignored in the calculation of earnings per share.
l. Cash Flow Statements
Cash flow are reported using indirect method, whereby net profit before tax is adjusted for the effects of transaction of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, investing and financing activities of the Company are segregated.
m. Operating Cycle
Based on the nature of products/activity of the company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
n. Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires managements to make judgments, estimates and assumption that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
Based on Financial Statement of Profit & Loss as Restated
? Components of our Profit and Loss Account Income
Our total income comprises of revenue from operations and other income.
Revenue from Operations
The Revenue from operations as a percentage of our total income was 99.93%, 99.98% and 99.98% during the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023 respectively.
(? in Lakhs)
Revenue from Operations |
For the year ended 31st March 2025 | For the year ended 31st March 2024 | For the year ended 31st March 2023 |
Sale of Goods |
24,922.42 | 10,035.23 | 4,085.54 |
Other Operating revenue: |
|||
- Sale of Scrap |
130.16 | 48.10 | - |
Total |
25,052.58 | 10,083.33 | 4,085.54 |
Other Income
Our Other Income primarily consists of Interest Income.
Other Income |
For the year ended 31st March 2025 | For the year ended 31st March 2024 | For the year ended 31st March 2023 |
Interest Income |
|||
i) From Deposit and Others |
16.93 | 0.84 | 0.66 |
ii) From Security Deposit |
- | 1.27 | - |
Total |
16.93 | 2.11 | 0.66 |
Expenditure
Our total expenditure primarily consists of Cost of Materials Consumed, Changes in Inventories of Work-In-Progress & Finished Goods, Direct Expense, Employee benefit expenses, Finance costs, Depreciation & Amortization Expenses and Other Expenses.
Direct Expenses
Our Direct expense comprises of Factory Power & Fuel, Factory Rent, Testing Charges, Labour charges and Repair & Maintenance. Employee Benefit Expenses
Our employee benefits expense comprises of Salaries & Wages, Contribution to Provident fund and ESI, Provision for Gratuity, Directors Salary, Bonus and Contribution to Various Funds.
Finance costs
Our Finance cost expenses comprise of Interest Expense, Other Borrowing Costs, Bill Discounting Charges, Loan Processing Charges and Interest on delayed payment of taxes.
Other Expenses
Other expenses primarily include Donation, Professional & Consultancy Fees, Printing & Stationery, Postage & Courier, Tender Fee, Travelling & Conveyance, Communication Expense, Rates & Taxes, Insurance & License Fees, Filing Fees, Miscellaneous Expenses and Remuneration to Auditors.
(? in Lakhs)
Other Expenses |
For the year ended 31st | For the year ended | For the year ended |
| March 2025 | 31st March 2024 | 31st March 2023 | |
Donation |
- | 0.15 | - |
CSR Expenses |
4.83 | - |
- |
Professional & Consultancy Fees |
10.56 | 5.60 | 1.40 |
Other Expenses |
For the year ended 31st March 2025 | For the year ended 31st March 2024 | For the year ended 31st March 2023 |
Printing & Stationery |
0.56 | 2.38 | 0.86 |
Postage & Courier |
0.34 | 0.14 | 0.01 |
Tender Fee |
0.25 | 0.10 | 0.10 |
Travelling & Conveyance |
413.22 | 149.79 | 48.00 |
Communication Expense |
0.21 | 0.18 | 0.12 |
Rates & Taxes |
7.57 | 1.28 | 0.09 |
Insurance & License Fees |
9.28 | 7.35 | 4.90 |
Filing Fees |
- |
0.08 | 0.01 |
Miscellaneous Expenses |
7.84 | 3.21 | 21.94 |
Remuneration To Auditors |
|||
- Statutory Audit Fees |
3.00 | 0.25 | 0.01 |
- Tax Audit Fees |
1.00 | 0.05 | 0.01 |
Total |
458.66 | 170.56 | 77.45 |
Provision for Tax
The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.
? Fiscal 2025 compared with Fiscal 2024 Revenue from Operations
The Revenue from Operations of our company for Fiscal year 2025 was ? 25,052.58 Lakhs against ? 10,083.33 Lakhs for Fiscal year 2024. An increase of 148.46% in revenue from operations. This increase was due to increase in installed capacity which was 15000 KM in F.Y 24 and 28000 Km in F.Y 25 with an efficient utilsation of 80% of Installed capacity. Along with Strong demand for cables and conductors pushed the revenue growth.
Other Income
The other income of our company for fiscal year 2025 was ? 16.93 Lakhs against ? 2.11 for Fiscal year 2024. An increase of 702.37% in other income. This increase was due to Interest income received from security deposits given to electricity boards.
Total Income
The total income of the company for fiscal year 2025 was ? 25,069.51 Lakhs against ? 10,085.44 Lakhs of total income for Fiscal year 2024 with an increase of 148.57% in total income. This increase was primarily due to Revenue coming from Increase in production from newly installed capacity.has contributed in the overall growth of the Turnover.
Expenditure
Cost of material consumed
In Fiscal 2025, cost of material consumed were ? 21,542.61 Lakhs against ?9,489.47 Lakhs of Cost of material consumed in fiscal 2024. An increase of 127.02%. This increase was due to increase in consumption of raw material which is directly attributable to increase in sales growth. Higher production leads to higher consumption of raw material.
Changes in inventories
In Fiscal 2025, changes in inventories were ?(742.06) Lakhs against ?(494.18) Lakhs of changes in inventories in fiscal 2024. Direct Expenses
In Fiscal 2025, the Company incurred Direct expenses of ? 271.04 Lakhs against ? 141.99 Lakhs of Direct expenses in fiscal 2024. An increase of 90.89%. This increase was due to increase in consumption of Power and Fuel and Labour charges.
Employee Benefit Expenses
In Fiscal 2025, the Company incurred employee benefit expenses of ? 109.20 Lakhs against ? 49.04 Lakhs expenses in Fiscal 2024. An increase of 122.68%. This increase was due to More manpower was required to handle the operations as compared to previous year. With an Overall growth in business there was a higher manpower requirement.
Finance Costs
The finance costs for the Fiscal 2025 were ? 364.48 Lakhs while it was ? 105.38 Lakhs for Fiscal 2024. An increase of 245.87%. This increase was due to increase in both short term borrowings from Rs 1746.97 lakhs to Rs 4460.17 lakhs and long term borrowings from Rs 29.94 lakhs to Rs 131.01 lakhs of the company. Increase in Overall borrowings led to increase in borrowing cost.
Other Expenses
In Fiscal 2025, our other expenses were ? 458.67 Lakhs and ? 170.56 Lakhs in Fiscal 2024. An increase of 168.92%. This increase was due to expenses like travelling and conveyance, Professional fees, Audit fees etc.
Profit before Tax
Our Company had reported a profit before tax for the Fiscal 2025 of ? 2,963.39 Lakhs against profit before tax of ? 613.91 Lakhs in Fiscal 2024. An increase of 382.71%. This increase was primarily driven by Higher sales volume directly lifted gross margins and optimum utilisation of resources led to higher output at lower cost which overall improved margins.
Profit after Tax
Profit after tax for the Fiscal 2025 were at ? 2,215.30 Lakhs against profit after tax of ? 457.98 Lakhs in fiscal 2024. An Increase of 383.71%. This increase was primarily driven by Revenue growth , Capacity expansion , increase in market demand of goods and higher production volume drove down the variable cost and optimum utilisation of resources led to higher margins.
Reason for Increase in the EBIDTA for FY 2023-24 and for December 31, 2024 EBITDA growth is attributed to following factors:- Turnover Growth:-
Revenue expanded from ?100 crore in FY 2023-24 to Rs 169 Crores till Nine Months Ended December 31, 2024, reflecting strong market demand for cables and conductors. - Higher sales volumes directly lifted gross profits, providing a larger base to absorb fixed overheads.
Capacity Expansion & Operational Leverage:
Installed capacity nearly doubled·from 15,000 km (March 31, 2024) to 28,000 km (December 31, 2024)·across Unit I and Unit II. Because of which we are able to achieve such growth.
Economies of Scale & Cost Efficiencies:
- Higher batch sizes and longer production runs drove down variable costs (power, fuel and utilities) on a per-unit basis. Raw-Material Procurement Optimisation: -
- With increased order sizes, we secured volume-linked and early-payment discounts from key copper, aluminium and polymer suppliers. Lower costs has helped us to yield better margins.
Higher Margin Sales:
- A higher proportion of cables (which carry superior margins) contributed to an uptick in overall blended gross margin from ~9.40% in FY 2023-24 to ~14.91% as of December 2024.
? Fiscal 2024 compared with fiscal 2023 Revenue from Operations
The Revenue from Operations of our company for fiscal year 2024 was ? 10,083.33 Lakhs against ? 4,085.54 Lakhs revenue from operations for Fiscal year 2023. An increase of 146.81% in revenue from operations. This increase was due to a new production facility which was started by us in Dankuni in 2023 -24. Our Output in F.Y 2023-24 was 11,504.2 km while in F.Y 2022-23 was 3,972 Km. So more than 2.5 times increase in output led to an increase in 146.81% revenue from operations.
Other Income
The other income of our company for fiscal year 2024 was ? 2.11 Lakhs against ? 0.66 for Fiscal year 2023. The increase of 219.70% in other income. This increase was due to the interest income received from a new security deposit given to WBSEDCL for the Dankuni Facility.
Total Income
The total income of the company for fiscal year 2024 was Rs. 10,085.44 Lakhs against Rs. 4,086.20 Lakhs of total income for Fiscal year 2023. An increase of 146.82% in total income. This increase was primarily on account of a new facility started by us as well as minor increase in interest income.
Expenditure
Cost of material consumed
In Fiscal 2024, cost of material consumed Procured were Rs. 9,489.47 Lakhs against Rs. 3,931.21 Lakhs in fiscal 2023. An increase of 141.39%. This increase was due to the increased consumption of raw materials. As our production has increase by more than 2.5 times our raw material consumption has also gone up proportionately.
Changes in inventories of Finished Goods, Work in Progress and Scrap
In Fiscal 2024, Changes in inventories of Finished Goods, Work in Progress and Scrap were ? (494.18) Lakhs against ? (97.80) Lakhs Changes in inventories of Finished Goods, Work in Progress and Scrap in fiscal 2023.
Direct Expenses
In Fiscal 2024, Direct Expenses Procured were Rs.141.99 Lakhs against Rs. 62.67 Lakhs Direct Expenses Procured in fiscal 2023. An increase of 126.57%. This increase was due to increase in consumption of power and fuel and labour charges.
Employee Benefit Expenses
In Fiscal 2024, the Company incurred employee benefit expenses Rs. 49.04 Lakhs against Rs. 26.24 Lakhs expenses in fiscal 2023. An increase of 86.89%. This increase was due to increase in salary and wages because of increase in manpower requirement.
Finance Costs
The finance costs for the Fiscal 2024 were Rs. 105.38 Lakhs while it was Rs. 39.94 Lakhs for Fiscal 2023. An increase of 163.85%. This increase was due to increase in borrowings. Our borrowings grew from Rs 384.13 lacs in FY 2022-23 to Rs 1,776.91 lacs.
Other Expenses
In fiscal 2024, our other expenses were Rs. 170.56 Lakhs and Rs. 77.45 Lakhs in fiscal 2023. An increase of 120.22%. This increase was due to increase in other business expenses like Professional consultancy fees, Travelling and conveyance, Insurance and License fees etc.
Profit before Tax
Our Company had reported a profit before tax for the Fiscal 2024 of Rs. 613.91 Lakhs against profit before tax of Rs. 43.21 Lakhs in Fiscal 2023. An increase of 1,320.76%. This increase was due to increase in production and sales. Sales grew 146.82% and production increased by more than 2.5 times. This resulted in increased profit.
Profit after Tax
Profit after tax for the Fiscal 2024 were at ? 457.98 Lakhs against profit after tax of ? 31.96 Lakhs in fiscal 2023. An increase of 1,332.98%. This increase was due to increase in sales and production. Sales grew by 146.82% and production increased by more than 2.5 times.
Changes in Revenue from Operation in past three years:
FY 2022-23 Negative Growth (-25.17%)
- Unplanned Equipment Downtime: During FY 2022-23, the Company experienced a major breakdown in its core extrusion machinery, resulting in several weeks of unplanned production stoppage and lost volumes.
- Working-Capital Constraints: Concurrently, delayed collections from key customers extended our receivables cycle and blocked cash flows, forcing us to scale back raw-material procurement and run rates.
- Combined Impact: The production shortfall, coupled with constrained working capital, led to a material drop in turnover and a negative year-on-year growth margin of 25.17%.
Sudden Spurt in revenue:
Capacity Expansion & Turnover Recovery
- Installed Capacity Ramp-Up:
* As of March 31, 2023: 6,000 km per annum
* As of March 31, 2024: 15,000 km per annum (Unit II commissioning and Unit I debottlenecking)
* As of December 31, 2024: 28,000 km per annum (further debottlenecking)
- Turnover Growth: Capacity nearly doubled in FY 2023-24, driving a 147% increase in revenues; subsequent expansion in FY 2024-25 again lifted turnover in line with the 1.5 times capacity increase.
Conclusion
The reversal from a 25.17% decline in FY 2022-23 to robust growth thereafter is attributable to the resolution of operational disruptions, normalization of our working-capital cycle, and strategic capacity additions that have scaled production to meet strong market demand.
? Cash Flows
(Amount ? in lakhs)
Particulars |
For the year ended March 31, |
||
| 2025 | 2024 | 2023 | |
Net Cash flow from / (used in) Operating Activities |
(1,821.24) | (1,274.69) | 122.49 |
Net Cash flow from / (used in) Investing Activities |
(709.33) | (161.05) | 0.66 |
Net Cash flow from / (used in) Financing Activities |
(2,465.37) | 1,500.55 | (121.49) |
Cash Flows from Operating Activities
1. For the year ended March 31, 2025, net cash flow used in operating activities was ? 1,821.24 Lakhs. This comprised of the net profit before tax of ? 2,963.39 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of ?102.18 Lakhs, Interest expense of ? 348.90 Lakhs, Interest income of ? 16.93 Lakhs, Gratuity expenses of ? 3.32 Lakhs. The resultant operating profit before working capital changes was ? 3,400.86 Lakhs, which was primarily adjusted for an increase in Trade Receivables of ? 3,542.32 lakhs, Short Term Loans & Advances (Including other Bank balances) of ? 540.74 lakhs, Inventories of ?2,378.54 lakhs, Trade payables of ? 1,677.84 lakhs, short term and long term provisions of ? 4.83 lakhs, and decrease in Other non-Current Assets of ? 4.93 lakhs and Current Liabilities of ? 53.02 lakhs.
Cash Used in Operations was ? 1,426.16 lakhs which was reduced by direct tax paid for ? 395.09 lakhs resulting into net cash used in operating activities of ? 1,821.24 lakhs.
2. For the year ended March 31, 2024, net cash flow used in operating activities was ? 1,274.69 Lakhs. This comprised of the net profit before tax of ? 613.91 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of ? 9.27 Lakhs, Interest expense of ? 99.03 Lakhs, Interest income of ? 2.11 Lakhs, Gratuity expenses of ? 8.57 Lakhs. The resultant operating profit before working capital changes was ? 728.67 Lakhs, which was primarily adjusted for an increase in Trade Receivables of ? 1,551.48 lakhs, Other non-Current Assets of ? 83.77 lakhs, Short Term Loans & Advances (Including other Bank balances) of ? 188.88 lakhs, Inventories of ? 676.24 lakhs, Current Liabilities of ? 172.31 lakhs and Trade Payables of ? 448.47 lakhs.
Cash Used in Operations was ? 1,150.92 lakhs which was reduced by direct tax paid for ? 123.77 lakhs resulting into net cash used in operating activities of ? 1,274.69 lakhs.
3. For the year ended March 31, 2023, net cash flow from operating activities was ? 122.49 Lakhs. This comprised of the net profit before tax of ? 43.21 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of ? 3.28 Lakhs, Interest expense of ? 34.14 Lakhs, Interest income of ? 0.66 Lakhs, Gratuity expenses of ? 1.49 Lakhs. The resultant operating profit before working capital changes was ? 81.46 Lakhs, which was primarily adjusted for an increase in Trade Receivables of ? 3.27 lakhs, Other non-Current Assets of ? 15.27 lakhs, Short Term Loans & Advances (Including other Bank balances) of ? 3.03 lakhs, Inventories of ? 169.09 lakhs, Trade Payables of ?726.42 lakhs and a decrease in Current Liabilities of ? 480.15 lakhs.
Cash Generated from Operations was ? 137.07 lakhs which was reduced by direct tax paid for ? 14.58 lakhs resulting into net cash flow from operating activities of ? 122.49 lakhs.
Cash Flows from Investing Activities
1. For the FY 2025, net cash used in investing activities was ? 709.33 Lakhs, which primarily comprised of cash used for Purchase of fixed assets of ? 726.26 lakhs and Interest income of ? 16.93 lakhs.
2. In FY 2024, net cash used in investing activities was ? 161.05 Lakhs, which primarily comprised of cash used for Purchase of fixed assets of ? 163.16 lakhs and Interest income of ? 2.11 lakhs.
3. In FY 2023, net cash flow from investing activities was ? 0.66 Lakhs, which comprised of Interest income of ? 0.66 lakhs.
Cash Flows from Financing Activities
1. For the FY 2025, net cash flow from financing activities was ? 2,465.37 Lakhs, which primarily comprised of cash used for Interest other finance expenses paid of ? 348.90 lakhs, proceeds from Borrowings of ? 3,094.23 lakhs, and repayment of borrowings of ? 279.96 lakhs.
2. In FY 2024, net cash flow from financing activities was ? 1,500.55 Lakhs, which primarily comprised of cash used for Interest other finance expenses paid of ? 99.03 lakhs, proceeds from Borrowings of ? 1,503.80 lakhs, Issue of Shares of ? 206.80 lakhs and repayment of borrowings of ? 111.02 lakhs.
3. In FY 2023, net cash flow used in financing activities was ? 121.49 Lakhs, which primarily comprised of cash used for Interest Paid of ? 34.14 lakhs, proceeds from Borrowings of ? 177.30 lakhs, and repayment of borrowings of ? 264.65 lakhs.
1. Unusual or infrequent events or transactions
Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as “unusual” or “infrequent”.
2. Significant economic changes that materially affected or are likely to affect income from continuing Operations
Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled “Risk Factors” beginning on page no. 28 of the Red Herring Prospectus. To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.
3. Known trends or uncertainties that have/had or are expected to have a material adverse impact on revenue or income from continuing operations
Apart from the risks as disclosed under Chapter titled “Risk Factors” beginning on page no. 28 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known
Our Companys future costs and revenues will be determined by demand/supply situation, both of the end products/services as well as the raw materials, government policies and other economic factors.
5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.
Our company manufactures diverse range of Cables and Conductors which widely include manufacturing of Power Cables, Control Cables, Aerial Bunched Cables, Single-core service wire and All Aluminium Conductor (A.A.C.), All Aluminium Alloy Conductor (A.A.A.C.), Aluminium conductor steel reinforced (A.C.S.R.). Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products.
6. Total turnover of each major industry segment in which the issuer company operated.
Our company manufactures diverse range of Cables and Conductors which widely include manufacturing of Power Cables, Control Cables, Aerial Bunched Cables, Single-core service wire and All Aluminium Conductor (A.A.C.), All Aluminium Alloy Conductor (A.A.A.C.), Aluminium conductor steel reinforced (A.C.S.R.). Relevant Industry dataas available, has been included in the chapter titled “Industry Overview” beginning on page no. 90 of this Red Herring Prospectus.
7. Status of any publicly announced new products or business segment.
Our company manufactures diverse range of Cables and Conductors which widely include manufacturing of Power Cables, Control Cables, Aerial Bunched Cables, Single-core service wire and All Aluminium Conductor (A.A.C.), All Aluminium Alloy Conductor (A.A.A.C.), Aluminium conductor steel reinforced (A.C.S.R.). Except as disclosed elsewhere in the Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new products or business segments.
8. The extent to which business is seasonal.
Our company manufactures diverse range of Cables and Conductors which widely include manufacturing of Power Cables, Control Cables, Aerial Bunched Cables, Single-core service wire and All Aluminium Conductor (A.A.C.), All Aluminium Alloy Conductor (A.A.A.C.), Aluminium conductor steel reinforced (A.C.S.R.). Our Companys business is not seasonal in nature.
9. Competitive conditions:
We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in chapter titles “Our Business” beginning on page no. 104 of this Red Herring Prospectus.
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