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Shivalic Power Control Ltd Management Discussions

98.5
(-1.50%)
Oct 6, 2025|12:00:00 AM

Shivalic Power Control Ltd Share Price Management Discussions

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2025

(PURSUANT TO REGULATION 34(2)(E) OF SEBI (LODR) REGULATIONS, 2015)

1. Industry Structure and Developments

The electrical equipment and panel manufacturing industry in India plays a critical role in supporting the countrys infrastructure growth, especially in the power, industrial, and commercial sectors. With increasing investments in power generation, transmission, smart cities, and industrial automation, demand for high-quality electrical panels is on the rise.

During FY 2024-25, the industry witnessed moderate growth, supported by government schemes like “Make in India”, Power for All, and Revamped Distribution Sector Scheme (RDSS). Rising adoption of renewable energy and increased focus on energy efficiency also created new avenues for advanced panel manufacturing.

However, the industry faced challenges such as:

• Volatility in raw material prices (especially copper and steel)

• Delays in public sector projects

• High working capital requirements

Despite this, the long-term outlook remains positive due to infrastructure development and modernization of electrical networks.

2. Business Overview

SHIVALIC POWER CONTROL LIMITED is engaged in the design, manufacture, and supply of customized electrical panels, including:

• Power Control Centers (PCCs)

• Motor Control Centers (MCCs)

• Distribution Boards (DBs)

• Automatic Power Factor Correction (APFC) Panels

• PLC and Automation Panels

• Bus Ducts and Turnkey Panel Solutions

We cater to a wide range of industries including real estate, manufacturing, hospitals, data centers, and EPC contractors. Our operations are backed by in-house engineering, quality assurance, and testing capabilities.

3. Financial Performance Overview For the year ended March 31, 2025:

• Revenue from Operations: Rs. 132 crores (Previous Year: Rs. 102 crores)

• Net Profit: Rs. 12.42 crores

The growth in revenue was driven by execution of orders from industrial and infrastructure clients, along with successful acquisition of new customers in southern and western India.

Profitability was impacted to some extent due to fluctuations in raw material costs and extended receivables cycles in government-linked projects.

4. Opportunities and Threats Opportunities

• Government push for infrastructure, electrification, and power distribution upgrades

• Growing demand for automation and smart panels

• Renewable energy projects and electric vehicle infrastructure

• Potential in export markets due to competitive manufacturing

Threats

• Price pressure from unorganized players

• Raw material cost fluctuations (steel, copper, aluminium)

• Project delays and payment cycles in the public sector

• High dependency on a few large customers or EPC contractors.

5. Outlook

The Company remains optimistic for FY 2025-26. Key growth drivers include:

• Strengthening order book from commercial and industrial clients

• Strategic partnerships with automation OEMs and EPC players

• Focus on high-margin, value-added panels and automation solutions

• Exploring exports to neighbouring countries and the Middle East

The Company is investing in capacity expansion, certifications (ISO/CE/IEC), and digitization to improve efficiency and competitiveness.

6. Risks and Concerns

• Working Capital Risk: Long receivables cycles can strain liquidity

• Technology Risk: Need to keep pace with changing automation and panel technology

• Supply Chain Risk: Dependence on suppliers for key raw materials

• Compliance Risk: Evolving electrical safety and regulatory norms

To mitigate these, the Company maintains prudent financial management, multi-vendor procurement, and strong internal controls.

7. Internal Control Systems and Their Adequacy

The Company has adequate internal control systems in place, which are commensurate with its size and nature of operations. These controls ensure accurate financial reporting, safeguarding of assets, and compliance with laws and regulations.

The internal audit function is carried out periodically, and key observations are reviewed by the Audit Committee.

8. Performance of the Company:

The Key Financial Parameters as on 31st March, 2025 are as follows:

Particulars As on 31st March 2025 As on 31st March 2024 % of variance Reason for Variance (for more than 25% increase/(decrease))
Current Ratio 9.44 1.61 486.34% Increase in ratio is due to payment of shortterm loan during the year by the company.
Debt-equity Ratio 0.05 0.78 -93.50% Decrease in ratio is due to higher payment of loan during the year by the company.
Debt service coverage ratio 5.4 2.77 94.95% Increase in ratio is due to payment of loan & outstanding debts during the year by the company.
Return on equity Ratio 16.12% 33.93% -52.49% Decrease in ratio is due to fresh issue of share capital.
Inventory turnover ratio 2.25 3.61 -37.67% Decrease in ratio is due to higher average inventory.
Trade receivables turnover 4.19 4.27 -1.87% -
Trade payables turnover ratio 14.34 11.84 21.11% -
Net capital turnover ratio 2.12 4.81 -55.93% Reduction in ratio is due to companys efforts to faster rotate the inventory and fasten the cash conversion cycle.
Net profit ratio 9.38% 10.97% -14.48% -
Return on capital employed 15.71% 24.87% -36.83% Reduction in ratio is due to recent capital investments; returns from these projects are expected in upcoming years.

• Revenue from Operations: 13,235.71 Lacs.

9. Human Resources and Industrial Relations

As of March 31, 2025, the Company had 3000 employees across departments including engineering, production, marketing, and administration.

During the year, the Company focused on upskilling of technical staff, worker safety, and retention of key personnel. Industrial relations remained cordial throughout the year.

10. Cautionary Statement

Statements in this report describing the Companys objectives, projections, estimates, and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual performance may differ materially from those expressed or implied due to various economic and political conditions, market demand, raw material prices, and other factors beyond the Companys control.

For and on behalf of the Board of Directors Shivalic Power Control Limited
Sd/-
Amit Kanwar Jindal
Managing Director
DIN: 00034633
Date: 29th August, 2025
Place: Faridabad

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