OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations for the stub period ended as on June 30, 2025, financial year ended on March 31, 2025, 2024 and 2023 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled “Restated Financial Statements ” beginning on page 296 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our auditedfinancial statements and restated in accordance with the SEBIICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.
You should read the following discussion of our financial condition and results of operations in conjunction with our Restated financial statements attached in the chapter titled “Financial Information” beginning on page 296 included in this Red Herring Prospectus. You should also read the section titled “Risk Factors ” on page 42 and the section titled “Forward Looking Statements ” on page 26 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. Our Financial Statements, as restated have been derived from our audited Financial Statement for the respective years. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.
Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor which is included in this Red Herring Prospectus under “Financial Statements” on Page 296. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to “we”, “us” or “our” refers to Sundrex Oil Company Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for Fiscal Year.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be “Forward Looking Statements” 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.
Business Overview
Our Company was originally incorporated on May 8, 2010 as a Limited Company under the brand name of “Sundrex Oil Company Limited” under the provisions of the Companies Act, 1956 vide Certificate of Incorporation bearing CIN: U23200WB2010PLC147053. issued by the Registrar of Companies, Kolkata and having its registered office at 16, India Exchange Place 3rd Floor Room No 14, Kolkata - 700001, West Bengal.
Our Company prides itself as one well-established ISO 9001:2015 certified public limited company, which has been catering to lubrication needs of industries all over India and its neighbouring countries. Our Company has endeavoured to constantly improve the product quality while expanding the product range and today manufactures a wide range of high-performance Industrial and Automotive Lubricants, Greases, Metal Working Fluids, bituminous products, IS: 335 Certified Transformer Oils, and other Specialty Products.
Our presence in India and Abroad
We have a presence across multiple regions in India like Assam, Odisha, Rajasthan and Uttar Pradesh and we also export our oils to various countries like UAE, Bangladesh, Bhutan
With a legacy spanning over a decade, we have established ourselves as a leading manufacturer of lubricants and greases, serving the lubrication needs of industries across India and its neighboring countries. In just a short period, we have grown into one of Eastern Indias lubricant manufacturing companies, offering an extensive range of products that includes lubricating oils, greases, metalworking fluids, white oils, and BIS-certified transformer oils—products that are unmatched in the region. Our portfolio also features specialty grades tailored to address specific customer requirements, as well as products designed to replace traditionally imported grades.
Diversified Product Portfolio
Sundrex Oil Company Limited offers a diverse range of high-performance lubricants and specialty petroleum products tailored to various industrial applications. Their product portfolio includes hydraulic oils, gear oils, engine oils, transformer oils, white oils, and specialized greases, among others. Each product is formulated to meet industry standards and specific operational needs, ensuring optimal performance and protection in machinery and equipment. With solutions ranging from cutting fluids to antifreeze coolants, Sundrex is dedicated to providing quality and reliability for sectors such as automotive, manufacturing, and energy, making them a versatile choice in the lubrication market.
Revenue Diversification Strategy
Our Company, as a manufacturer of lubricants, derives its revenue from a diverse array of sources to enhance its financial resilience and support sustainable growth.
One significant income stream is contract manufacturing, where our Company partners with other brands to produce lubricants under their labels. This partnership not only maximizes production efficiency but also expands market reach without the need for extensive marketing efforts.
Supplies to private entities represent another crucial segment. The growing demand in various industries for high-quality lubricants means that our Company can cater to a wide range of clients, from automotive to industrial sectors. This versatility allows our Company to tap into various markets, ensuring steady revenue flow. Additionally, supplies to public sector undertakings (PSUs) play a vital role. Supplying lubricants to government-backed projects fosters stable business relationships and often leads to longterm contracts, adding a layer of reliability to our Companys income.
Exports also contribute to our Companys revenue, reflecting its ability to compete on an international scale. By reaching overseas markets, our Company can diversify its customer base and mitigate risks associated with fluctuations in domestic demand. Lastly, other income streams, such as investments or ancillary services, provide further financial stability. This multifaceted approach to revenue generation not only helps our Company navigate market challenges but also positions it for long-term success and innovation in the lubricant industry. For product wise revenue bifurcation in the chapter titled “Our Business” beginning on page 187 of this Red Herring Prospectus.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of Statement of Significant Accounting Policies, please refer to Significant Accounting Policies and Notes to accounts, “Note - 2” beginning under Chapter titled “Restated Financial Statements beginning on page 302 of this Red Herring Prospectus.
Key Performance indicators (“KPIs”)
Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a duration of one year after the date of listing of the Equity Shares on the Stock Exchange or till the complete utilisation of the proceeds of the Fresh Offer as per the disclosure made in the Objects of the Offer Section, whichever is later or for such other duration as may be required under the SEBI ICDR Regulations.
The KPIs disclosed below have been approved by a resolution of our Audit Committee dated September 25, 2025 and the members of the Audit Committee have verified the details of all KPIs pertaining to our Company. Further, the members of the Audit Committee have confirmed that there are no KPIs pertaining to our Company that have been disclosed to any investors at any point of time during the three years period prior to the date of filing of this Red Herring Prospectus. Further, the KPIs herein have been certified by M/s Jain Sonu and Associates, Chartered Accountants, by their certificate dated October 06, 2025 who hold a valid certificate issued by the Peer Review Board of the ICAI. The Statutory Auditors certificate dated October 06, 2025 has been included in the section ‘Material Contracts and Documents for Inspection of this Red Herring Prospectus.
The KPIs disclosed below have been used historically by our Company to understand and analyze the operational and the financial performance, which in result, helps it in analyzing the growth of various verticals in comparison to its listed peers, and other relevant and material KPIs of the business of our Company that have a bearing on arriving at the Basis for Offer Price have been disclosed below.
The Applicants can refer to the below-mentioned Key Performance Indicators, being a combination of financial and operational Key Performance Indicators, to make an assessment of our Companys performances and make an informed decision.
Financial KPI of our Company -
(Amount Rs. In Lakhs except Percentages)
Sr. No. Metrix |
As on the Stub Period 30 June, 2025 Consolidated | As of and for the Fiscal | ||
| 2025 Consolidated | 2024 Consolidated | 2023 Standalone | ||
| 1 Revenue From Operation (Rs in Lakhs) | 1870.72 | 6719.68 | 4831.36 | 2748.97 |
| 2 Total Income (Rs in Lakhs) | 1918.22 | 6911.86 | 4919.22 | 2779.02 |
| 3 Growth (%) in Total Income | - | 40.51 | 77.01 | - |
| 4 Operating EBITDA (Rs in Lakhs) | 260.09 | 705.05 | 413.88 | 157.45 |
| 5 Year on Year growth in Operating EBITDA (%) | 70.35 | 162.86 | ||
| 6 Operating EBITDA Margin (%) | 13.90 | 10.49 | 8.57 | 5.73 |
| 7 Profit/(loss) after tax for the year (Rs in Lakhs) | 194.17 | 544.46 | 256.49 | 39.82 |
| 8 Growth (%) in PAT | - |
112.27 | 544.12 | - |
| 9 Net profit Ratio / PAT Margin (%) | 10.38 | 8.10 | 5.31 | 1.45 |
| 10 Return on Equity (ROE) (%) | 11.27 | 35.63 | 64.83 | 28.68 |
| 11 Debt To Equity Ratio | 0.99 | 1.13 | 3.44 | 7.04 |
| 12 Debt Service Coverage Ratio | 1.48 | 3.13 | 1.69 | 0.90 |
| 13 ROCE (%) | 8.78 | 27.03 | 27.91 | 13.28 |
| 14 Current Ratio | 2.09 | 2.55 | 1.41 | 1.73 |
| 15 Net Capital Turnover Ratio | 1.13 | 5.36 | 8.73 | 10.51 |
| 16 P/E Ratio | [*] | [*] | [*] | [*] |
| 17 EPS | 2.01 | 8.12 | 6.81 | 1.06 |
| 18 Networth | 1722.22 | 1528.05 | 395.66 | 138.84 |
Notes:
a) As certified by M/s Jain Sonu and Associates, Chartered Accountants pursuant to their certificate dated
October 06, 2025 the Audit committee in its resolution dated September 25, 2025 has confirmed that the Company has notdisclosed any KPIs to any investors at any point of time during the three years preceding the date of thisRed Herring Prospectus other than as disclosed in this section.
b) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.
c) Total Income as appearing in the Restated Financial Statements of the companies
d) Operating EBITDA refers to earnings before interest, taxes, depreciation, amortization, gain or loss from discontinued operations and exceptional items. Operating EBITDA excludes other income.
e) Operating EBITDA Margin refers to operating EBITDA during a given period as a percentage of revenue from operations during that period.
f) PAT is the profit for the year from continuing operations.
g) Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by our revenue from operations.
h) Return on equity (ROE) is equal to profit for the year divided by the total average equity during that period and is expressed as a percentage.
i) Debt to equity ratio is calculated by dividing the Total debt (i.e., Total borrowings) by total equity (Shareholders Fund).
j) Debt Service Coverage Ratio measures our ability to make interest payments from available earnings and is calculated by dividing EBITDA by Debt service (Principal + Interest).
k) RoCE (Return on Capital Employed) (%) is calculated as Earnings Before Interest and Tax divided by total average equity plus non-current liabilities (i.e. Tangible Net worth + Total Debt+ Deferred Tax Liabilities).
l) Current Ratio is a liquidity ratio that measures our ability to pay short-term obligations (those which are due within one year) and is calculated by dividing the current assets by current liabilities.
m) Net Capital Turnover Ratio quantifies our effectiveness in utilizing our working capital and is calculated by dividing our revenue from operations by our Average working capital (i.e., current assets less current liabilities)
n) EPS is calculated as PAT of relevant year divided by Average number of Equity Share
o) Net worth is a snapshot of financial stability at a given point in time and is useful for assessing financial progress and making informed financial decisions. The formula is Net worth = Total Assets - Total Liabilities
* Year-on-year growth is calculated as (Relevant Year Amount/ number minus Previous Year Amount/ number) divided by Previous Year Amount/number.
Set forth the description of historic use of the KPIs by our Company to analyses, track or monitor the operational and/or financial performance of our Company.
For evaluation of our business, we consider that the KPIs, as presented above, as additional measures to review and assess our financial and operating performance. These KPIs have limitations as analytical tools and presentation of these KPIs should not be considered in isolation or as a substitute for the Restated Standalone Financial Information. Further, these KPIs may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Although these KPIs are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that it provides an additional tool for investors to use our operating results and trends and in comparing our financial results with other companies in our industry as it provides consistency and comparability with past financial performance.
KPI |
Explanations |
| Revenue from Operations (Rs in Lakhs) | Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and Size of our business. |
| Total Income (Rs in Lakhs) | Total Income is used to track the total revenue from operations, generated by the business including other income. |
| Operating EBITDA (Rs in Lakhs) | Operating EBITDA provides information regarding the operational efficiency of thebusiness. |
| Operating EBITDA Margin (%) | Operating EBITDA Margin is an indicator of the operational profitability and financialperformance of our business. |
| Profit After Tax for the year (Rs in Lakhs) | Profit after tax provides information regardingthe overall profitability of the business. |
| Net Profit Ratio/PAT Margin (%) | PAT Margin is an indicator of the overall profitability and financial performance of our business. |
| Return on Equity (ROE) (%) | ROE provides how efficiently our Company generates profits from shareholders funds. |
| Debt To Equity Ratio | Debt-to-equity (D/E) ratio is used to evaluatea companys financial leverage. |
| Debt Service Coverage Ratio | The debt service coverage ratio is a debt service and profitability ratio used to determine how easilya company can pay interest and principal on its outstanding debt. |
| Return on Capital Employed (%) | ROCE provides how efficiently our Company generates earnings from the capital employed in the business. |
| Current Ratio | It shows management how business can maximize the current assets on its balancesheet to satisfy its current debt and other payables. |
| Net Capital Turnover Ratio | This metric enables us to track the how effectively company is utilizing its working capital to generate revenue. |
| Earnings Per Share | Earnings Per Share (EPS) is a financial metric used to gauge a companys profitability on a per- share basis. It tells investors how much profit a company has earned for each share of its common stock. |
| Net Worth | Net worth is a measure of an individuals or organizations financial health, calculated by subtracting total liabilities from total assets. |
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET
In the opinion of the Board of Directors of our Company, there have not arisen, since the date of June 30, 2025 as disclosed in this Red Herring Prospectus, any significant developments or any circumstance that materially or adversely affects or are likely to affect the profitability of our Company or the value of any of its assets or its ability to pay its material liabilities within the next twelve months.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors” beginning on page 42 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:
• General economic and business conditions in the markets in which we operate and in the local & regional economies;
• Changes in Industry Requirements;
• New Innovation of our product portfolio, from time to time;
• Changes in government policies resulting high taxes payable by us;
• Changes in laws and regulations that apply to the industries in which we operate;
• Impact of Russia-Ukraine War and Israel - Hamas War on our business and operations;
• General economic, political, and other risks that are out of our control;
• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;
• Companys ability to successfully implement its growth strategy and expansion plans;
• Occurrence of Environmental Problems & Uninsured Losses;
• The performance of the financial markets in India and globally.
• Performance of Companys competitors.
• Our ability to maintain tie-ups or collaboration agreement with our partners;
• Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues
• Rapid Technological advancement and inability to keep pace with the change
• Our ability to retain and hire key employees or maintain good relations with our workforce
• Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues
• Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition
• Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the stub period ended June 30, 2025, financial year ended on 31st March, 2025, 31st March, 2024 and 31st March, 2023.
Result of Operations
Restated Consolidated Statement of Profit & Loss
| June 30, 2025 | % of Total | March 31, 2025 | % of Total | March 31, 2024 | % of Total | March 31, 2023 | % of Total | |
Particulars |
Amount in Lakhs(Rs) | Income | Amount in Lakhs(Rs) | Income | Amount in Lakhs(Rs) | Income | Amount in Lakhs(Rs) | Income |
| Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Consolidated | Standalone | Standalone | |
A INCOME |
||||||||
| Revenue from Operations | 1,870.72 | 97.52% | 6,719.68 | 97.22% | 4,831.36 | 98.21% | 2,748.97 | 98.92% |
| Other Income | 47.50 | 2.48% | 192.18 | 2.78% | 87.86 | 1.79% | 30.05 | 1.08% |
I TOTAL INCOME |
1,918.22 | 100.00% | 6,911.86 | 100.00% | 4,919.21 | 100.00% | 2,779.02 | 100.00% |
B EXPENSES |
||||||||
| Cost of Raw Materials consumed | 1,522.81 | 79.39% | 5,702.69 | 82.51% | 3,965.55 | 80.61% | 2,150.42 | 77.38% |
| Purchase of Stock in Trade | 0.00% | 0.00% | 0.00% | 0.00% | ||||
| Change in Inventories of Finished Goods & Work-In-Progress | (66.91) | -3.49% | (203.79) | -2.95% | (23.22) | -0.47% | (11.69) | -0.42% |
| Employee Benefit Expenses | 31.46 | 1.64% | 130.31 | 1.89% | 96.73 | 1.97% | 71.63 | 2.58% |
| Finance Cost | 44.86 | 2.34% | 179.86 | 2.60% | 143.74 | 2.92% | 92.99 | 3.35% |
| Depreciation & Amortization Expenses | 9.06 | 0.47% | 34.55 | 0.50% | 23.98 | 0.49% | 51.13 | 1.84% |
| Other Expenses | 119.57 | 6.23% | 363.62 | 5.26% | 367.23 | 7.47% | 369.35 | 13.29% |
II TOTAL EXPENSES |
1,660.85 | 86.58% | 6,207.24 | 89.81% | 4,574.01 | 92.98% | 2,723.84 | 98.01% |
III PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX (I- II) |
257.37 | 13.42% | 704.63 | 10.19% | 345.20 | 7.02% | 55.17 | 1.99% |
IV EXCEPTIONAL ITEM Profit / (Loss) on Sale of Assets Liability/Asset no longer required |
||||||||
V PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX (III-IV) |
257.37 | 13.42% | 704.63 | 10.19% | 345.20 | 7.02% | 55.17 | 1.99% |
VI Extraordinary items Income/ (Expenses) |
||||||||
VII PROFIT BEFORE TAX(V-VI) |
257.37 | 13.42% | 704.63 | 10.19% | 345.20 | 7.02% | 55.17 | 1.99% |
VIII TAX EXPENSE: |
||||||||
(1) Current tax |
||||||||
| - Provision for Income Tax | 62.24 | 3.24% | 156.86 | 2.27% | 81.23 | 1.65% | 19.00 | 0.68% |
(2) Deferred Tax |
||||||||
| - Deferred Tax Liability Created/ (Reversal) | 0.97 | 0.05% | 3.31 | 0.05% | 7.48 | 0.15% | (3.65) | -0.13% |
Total of Tax Expenses |
63.21 | 3.30% | 160.16 | 2.32% | 88.71 | 1.80% | 15.35 | 0.55% |
IX PROFIT/(LOSS) FOR THE YEAR (VII-VIII) |
194.17 | 10.12% | 544.46 | 7.88% | 256.50 | 5.21% | 39.82 | 1.43% |
Minority interests share |
0.01 | 0.00% | 0.01 | 0.00% | 0.03 | 0.00% | 0.00% | |
Parents Share |
194.16 | 10.12% | 544.45 | 7.88% | 256.46 | 5.21% | 39.82 | 1.43% |
EARNING PER SHARE |
||||||||
(Nominal value of share 10) |
||||||||
| Basic & Diluted Earning Per Share | 2.01 | 8.12 | 6.81 | 1.06 |
Revenue from Operations:
Our company generates revenue through a diversified portfolio that spans both manufacturing and service- oriented streams within the lubricant and industrial product sectors. Our primary income drivers include the production and sale of high-performance industrial and automotive lubricants such as hydraulic oils, gear oils, and transmission oils, which cater to critical machinery and equipment needs across industries.
In addition, we capitalize on contract manufacturing services like toll blending and private labelling, offering tailored solutions for businesses to scale without capital investment. These services, combined with our expansive B2B and B2C reach across India, ensure a robust and steady revenue flow, reflecting the demand for our specialized formulations and value-added offerings.
Other Income:
Our other income primarily consists of Discount Received, Delivery Charges, Discount on bulk purchase, Electricity expenses Reimbursement, Foreign Exchange Fluctuation, Interest on FDR, Interest on Income Tax Refund, Interest Income, Misc Receipts, Freight, Earning from Sundry Balances written off, Shortages, Profit from Sale of Mutual Fund.
Expenses:
Companys expenses consist of Cost of Raw Materials Consumed, Purchase of Traded goods, Change in Inventories of Finished Goods, Work-In-Progress & Stock-In-Trade, Employee benefits expense, Finance Cost, Depreciation and Amortization Expenses and Other Expenses.
Cost of Raw Materials Consumed:
Cost of Raw Materials Consumed comprises of purchase of Base oil, additives and solvents. The process involves blending base oils with various additives in precise proportions to achieve desired properties. The mixture is then thoroughly mixed, filtered, and tested for quality control before packaging for distribution.
Purchase of Traded Goods
There is no purchase of Traded goods.
Changes in inventories of finished goods, Work-In-Progress & Stock in Trade:
Changes in Inventories of Finished Goods & Stock in Process i.e. difference between opening stock and closing stock of Finished Goods & Stock in Process.
Employee benefits expense:
Our Employee Benefits Expense primarily comprises of Salaries, Wages & Bonus, Staff Welfare Expenses, Directors Remuneration and Gratuity.
Finance Costs:
Our finance cost includes Interest expense on Working Capital Loan, Term Loan and Vehicle Loan and Bank Charges & other borrowing cost such as Loan Processing Fees and Other Charges.
Depreciation and Amortization Expenses
Depreciation includes depreciation on Factory Buildings, Plant & Machinery, Motor Vehicles, Furniture & Fixtures, Computer & Peripherals & Office Equipment.
Other Expenses:
Our Other Expenses consists of Manufacturing Expenses, Administrative Expenses and Selling & Distribution Expenses which further consist Advertisement, Annual License/Registration Fees, Annual Maintenance Charges, Annual Software charges, Auditors Remuneration, Bank Charges, Bank Guarantee Charges, Bill Processing charges, Brokerage & Commission, Bad debts, Calibration Charges, Car Insurance, Computer Expenses, Consultancy Charges, Conveyance, Delivery charges, Detention Charges, Discount Allowed, Donation, Electrical Exp, Export & Shipping Charges, Filing Fee, General Expenses, Installation Charges, Insurance, Interest on premature of FDR, Interest on ESIC, Interest on NSIC, Internet Charges, Late delivery, Late fine Charges, Legal Charges, Misc. Expenses, Motor Car Expenses, Office
Expenses, GST Penalty, Postage & Telegram, Printing & Stationery, Processing charges, Professional Charges, Rates & Taxes, Rent, Repairs & Maintenance, Sales Incentive Expenses, Sales Promotion, Sample Testing Charges, Security Charges, Software & License expense, Telephone Expenses, Transport Expenses, Travelling Expenses etc
Summary of major items of Income and Expenditure:
Revenue From Operations: - We are a manufacturer and wholesaler of lubricants, greases, and a wide range of industrial products, serving both B2B and B2C markets across India. Our portfolio includes the production of industrial lubricant, automotive lubricant, and specialty products. We specialize in high- performance lubricants, greases, metalworking fluids, bituminous products, IS: 335 Certified Transformer Oils, and other specialized formulations. We generate revenue through sale of goods and sale of services. Our revenue from operation during the Stub period ended June 30, 2025, financial year ending 2024-25, Financial year ending 2023-24 and Financial Year ending 2022-23 are 97.52%, 97.22%, 98.21%, and 98.92% of total income respectively.
| REVENUE FROM OPERATIONS AS RESTATED | June 30,2025 | March 31,2025 | March 31,2024 | March 31,2023 |
| Amount in LakhstRs) | Amount in LakhstRs) | Amount in LakhstRs) | Amount in LakhstRs) | |
| Sale of Products | ||||
| (i)Domestic Sab | 1,802.87 | 6,452.41 | 4,609.58 | 2,479.90 |
| (ii)Export sales | - | 52.12 | 17.59 | 32.67 |
| Sale of Services | ||||
| (i) Sales of Services from Subsidiaries | 1.69 | 20.74 | 10.09 | |
| (ii) Contract Manufacturing Sales | 66.16 | 194.42 | 194.11 | 236.39 |
| Total of Revenue from Operations | 1,870.72 | 6,719.68 | 4,831.36 | 2,748.97 |
Other Income: - The detailed breakup of other income is presented for the specified period as follows:
OTHER INCOME AS RESTATED |
June 30, 2025 | March 31, 2025 | March 31, 2024 | March 31,2023 |
| Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | |
| Discount received | 11.49 | 158.62 | 65.38 | 11.80 |
| Commission Received | - | - | 0.70 | - |
| Foreign Exchange of Fluctuation | - | - | 0.17 | - |
| Interest on FDR | 0.95 | 6.20 | 6.44 | 8.37 |
| Interest on Income Tax Refund | - | - | - | 0.16 |
| Interest Received | - | 0.43 | 3.29 | - |
| Misc Receipts | 1.15 | 1.65 | 1.53 | 5.46 |
| Sundry Balances written Back | 33.91 | 4.78 | 5.94 | - |
| Shortages | - | 2.11 | 4.07 | 4.25 |
| Liabilities Written Back | - | - | 0.33 | - |
| Profit from Sale of Mutual Fund | - | 12.39 | - | - |
| Profit on Sale of Fixed Assets | - | 0.47 | - | - |
| Incentive Income | - | 5.54 | - | - |
Total of Other lncome |
47.50 | 192.18 | 87,86 | 30,05 |
Total Expenses: - Our total expenses encompass the following - (i) Cost of Raw Materials Consumed (ii) Purchase of Traded Goods (iii) Change in Inventories of Finished Goods, Work-In-Progress & Stock in Trade, (iv) Employee benefits expense, (v) Finance Cost, (vi) Depreciation and Amortization Expenses and (vii) Other Expenses.
Cost of Raw material consumed: - The subsequent table sets forth a breakdown of our cost of materials consumed for the periods indicated:
| COST OF RAW MATERIAL CONSUMED AS RESTATED | June 30,21)25 | March 31,2025 | March 31,2024 | March 31,2023 |
| Amount in LakhsIRsl | Amount in LakhsIRsl | Amount in LakhsIRsl | Amount in LakhsIRsl | |
| A. Raw Materials | ||||
| Stock at the beginning of tlie year | 251.68 | 136.26 | 59.32 | 67.76 |
| Add: Purchase during the year | 1,525.03 | 5,664.25 | 3,882.36 | 2,025.86 |
| Less: Stock at le end of le year | 300.05 | 251.68 | 136.26 | 59.32 |
| TOTAL (A) | 1,476.65 | 5,548.83 | 3,805.42 | 2,034.30 |
| B. Stores including Packing Materials | ||||
| Stock at the beginning of le year | 23.57 | 0.30 | 0.30 | 18.96 |
| Add: Purchase during the year | 42.54 | 177.13 | 160.13 | 97.47 |
| Less: Stock at le end of le year | 19.95 | 23.57 | 0.30 | 0.30 |
| TOTAL (B) | 46.16 | 153.86 | 160.13 | 116.12 |
| Total of Raw Materials Consumed (A+B) | 1,522.81 | 5,7(12.69 | 3,965.55 | 2,150.42 |
Purchase of Traded Goods: - There stands no Purchase of Traded goods in Restated Balance sheet.
Changes in Inventories of Finished Goods, Work-in-Progress & Stock in Trade: - The following table sets forth a breakdown of changes in inventories of Finished Goods and Stock in Process for the periods indicated:
| June 30, 2025 | March 31, 2025 | March 31, 2024 | March 31, 2023 | |
CHANGE IN INVENTORIES OF FINISHED GOODS & WORK-IN-PROGRESS AS RESTATED |
Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | Amount in Lakhs(Rs) |
Inventories at the End of the year |
386.73 | 319.82 | 116.03 | 24.71 |
(Valued at lower of Cost or Net Realizable Value) |
||||
| 386.73 | 319.82 | 116.03 | 24.71 | |
Inventories at the beginning of the year |
319.82 | 116.03 | 92.81 | 13.02 |
| 319.82 | 116.03 | 92.81 | 13.02 | |
Change in Inventories of Finished Goods & Work-in-Progress |
(66.91) | (203.79) | (23.22) | (11.69) |
Employee Benefit Expenses: - The following table sets forth a breakdown of our employee benefits expense for the periods indicated:
EMPLOYEE BENEFITS EXPENSES AS RESTATED |
June 3b, 2025 | March 31,2025 | March 31,2024 | March 31,2023 |
| Amount in LakhsfRs) | Amount in LakhsfRs) | Amount in Lakhs(Rs) | Amount in Lakhs(Rs) | |
Bonus |
3.83 | 3.53 | 1.04 | |
Directors Remuneration |
1.20 | 1.80 | 4.80 | 21.30 |
Incentives paid to employee |
0.37 | 0.07 | ||
Employers Contribution on EPF |
0.10 | 0.70 | 0.71 | 0.83 |
Staff welfare Expenses |
2.70 | |||
Employers Contribution on ESI |
0.12 | 0.10 | 0.52 | 0.30 |
Salaries and wages |
20.05 | 120.03 | 84.31 | 48.07 |
Total of Employee Benefits Expenses |
31.4li | 130.31 | 96,73 | 71,63 |
Finance Costs: - Bifurcation of finance costs is described below:
FINANCE COST AS RESTATED |
June 30,2025 | March 31,2025 | March 31,2024 | March 31,2023 |
| Amount in | Amount in | Amount in | Amount in | |
| Lakhs(Rs) | Lakhs(Rs) | Lakhs(Rs) | Lakhs(Rs) | |
Interest on Loan |
||||
Interest on Secured Loan |
13.80 | 55.95 | 60.00 | 4079 |
Interest on Unsecured Loan |
1.95 | 7.31 | 17.41 | |
Interest on OD/CC |
10.89 | 45.61 | 34.87 | 16.14 |
Interest on Business Loan |
13.43 | 41.85 | 22.95 | 6.22 |
Interest on Vehicle Finance |
0.40 | 1.96 | 1.84 | 0.66 |
Interest on NSIC |
2.65 | 10.74 | 5.60 | |
Foreclosure Chaise |
3.92 | |||
Loan Processing and Other Chaiges |
2.32 | 14.85 | 2.23 | 11.34 |
Bank Charges |
1.38 | 6.96 | 5.03 | 045 |
Total of Finance Cost |
11.86 | 179.86 | 113.71 | 92.99 |
Depreciation and Amortization Expenses: - The segregation of depreciation and amortization expenses is described as follows
DEPRECIATION k AMORTIZATION EXPENSES AS RESTATED |
June 3(1,2025 | March 31,2025 | March 31,2024 | March 31,2023 |
| Amountin Lakhs(Rs) | Amountin Lakhs(Rs) | Amountin Lakhs(Rs) | Amountin Lakhs(Rs) | |
| Depreciation and Amortization on PPE and Intangible Assets | 9.06 | 34.55 | 23.98 | 51.13 |
Total of Depredation k Amortization Expenses |
9.06 | 34,55 | 23.98 | 51,13 |
Other expenses: - The following table sets forth a breakdown of our other expenses for the periods Indicated:
OTHER EXPENSES AS RESTATED |
June 3(1, 2025 | March 31, 2025 | March 31,2024 | March 31,2023 |
| Amountin Lakhs(Rs) | Amountin Lakhs (Rs) | Amountin Lakhs(Rs) | Amountin Lakhs(Rs) | |
| Pniiluclinn Expenses | ||||
| Catriage Inward | 55.04 | 106.88 | 87.40 | 79.44 |
| Electricity Expenses | 2.40 | 11.82 | 12.12 | 5.61 |
| Consumables | 2.54 | 15.97 | 20.92 | 28.18 |
| Rate difference in purchases | - | - | 14.82 | |
| License & Renewal Fees | 0.56 | 1.29 | 1.41 | |
| Filling Service Charges | 2.84 | 22.09 | 20.05 | 13.97 |
| Packing and Labeling | 3.41 | 4.53 | 11.47 | 14.24 |
| Tender Fees | 0.46 | 2.08 | 1.90 | 0.44 |
Total of Production Expenses (A) |
66.6$ | 163.93 | 155.15 | 158.12 |
Adminislrative Expenses |
||||
| Advertisement | 0.29 | 0.47 | 0.31 | 0.70 |
| Auditors Remuneration | 1.00 | 4.00 | 2.16 | 1.41 |
| Brokerage & Commission | 3.05 | 13.03 | 14.55 | 35.47 |
| Bad debts | - | 0.54 | 18.97 | |
| Calibaration Charges | 0.12 | 0.14 | 0.26 | 0.16 |
| Conveyance k Travelling | 9.43 | 23.10 | 27.02 | 13.88 |
| Discount AOowed | 0.26 | 0.43 | 1.21 | 7.69 |
| Electrical Expenses | 0.13 | 1.38 | 1.36 | 2.13 |
| Export & Shipping Charges | 0.44 | 0.38 | - | |
| Filing Fee | 2.86 | 4.46 | 0.31 | 0.01 |
| Insurance | 0.19 | 3.71 | 2.11 | 3.73 |
| Interest on Statutory Dues | 0.56 | 2.30 | 2.70 | 1.52 |
| Fine & Penally Charges | 0.19 | 3.31 | 0.49 | 0.66 |
| Professional k Legal Expenses | 1.05 | 8.43 | 7.63 | 13.25 |
| Misc. Expenses | 0.50 | 0.47 | 1.30 | 0.21 |
| Office Expenses | 1.48 | 7.20 | 8.00 | 7.41 |
| Rent,Rates & Taxes | 0.45 | 4.05 | 2.05 | 0.84 |
| Repairs & Maintenance | 0.55 | 3.14 | 5.57 | 35.18 |
| Sales Promotion | 2.77 | 20.10 | 29.48 | 6.05 |
| Security Charges | 2.50 | 12.85 | 12.04 | 8.76 |
| Transport Expenses | 25.51 | 86.67 | 92.59 | 53.21 |
Total of Administrative Expenses (LI) |
52.88 | 199,68 | 212.08 | 211.23 |
Total of Other Expenses (A+B) |
119.57 | 363.62 | 367.23 | 369.35 |
Financial performance highlights for stub period ended on June, 30th 2025:
Total Income: - Total Income during the stub period ended June 30, 2025 stood at Rs 1,918.22 lakhs which consists of Revenue from Operations and Other Income.
Revenue from Operations: - Revenue from Operation during the stub period ended June 30, 2025 stood at Rs 1,870.72 lakhs. This revenue was derived from the production and sale of wide range of products like Hydraulic Oil, Transformer Oil, Spindle Oil etc. In the stub period our Company has achieved the revenue from domestic sales. In domestic sale, West Bengal contributes around 87.08% of total Revenue.
| Demography wise Turnover for the Stub Period ; ended June 30, 2025 | |
| Particulars | Amount in Lakhs (INR) |
Export |
- |
WEST BENGAL |
1,629.09 |
Other Sates in India |
241.63 |
Total |
1,870.72 |
The segregation of revenue from operations on various supply basis for the stub period ended June 30, 2025 is as follows:
SL No. Various Supplies |
Amount (Rs. In Lakhs) |
| 1 Sales to Services | 1.69 |
| 2 Contract Manufacturing | 66.16 |
| 3 Supplier to PSUs | 108.57 |
| 4 Supplier to Private | 1,694.29 |
TOTAL |
1,870.72 |
The total revenue from operations earned by the company during the stub period ended June 30, 2025, in terms of PSU and Non-PSU sales are as follows:
SL No. Particulars |
Amount (Rs. In Lakhs) |
| 1 PSU Revenue | 174.74 |
| 2 Non-PSU Revenue | 1695.98 |
TOTAL |
1870.72 |
Other Income: - Other income during the stub period ended June 30, 2025 was Rs. 47.50 lakhs. The other income primarily comprises of Discount Received on Bulk purchase of Rs 11.49 lakhs, which is 24.18% of Other Income. Further, our company has recovered sundry balances which were written off earlier of Rs 33.91 lakhs, Interest on Fixed deposit of Rs 0.95 lakhs and Miscellaneous receipts of Rs. 1.15 Lakhs.
Total Expenses: - Total Expense during the stub period ended June 30, 2025 stood at Rs 1,660.85 lakhs. Our total expenses encompass the following - (i) Cost of Raw Materials Consumed (ii) Purchase of Traded Goods (iii) Change in Inventories of Finished Goods, Work in Progress & Stock in Trade (iv) Employee benefits expense, (v) Finance Cost, (vi) Depreciation and Amortization Expenses (vii) Other Expenses.
Cost of Raw Material Consumed: -Cost of Raw Material Consumed during the stub period ended June 30, 2025 stood at Rs 1,522.81 lakhs, which is approximately 79.39% of Total Income. It comprises of cost raw material, mainly base oil, additives and chemicals.
Purchase of Traded Goods: - There is no purchase of Traded Goods.
Changes in Inventories of Finished Goods, Work-In-Progress and Stock In Trade: - Changes in Inventory of Finished Goods and Stock in progress during the stub period ended June 30, 2025 stood at Rs (66.91) lakhs. It comprises of difference between opening stock and closing stock of Finished Goods & Stock- In-Progress.
Employee benefits expense: - Employee Benefit Expense during the stub period ended June 30, 2025 stood at Rs 31.46 lakhs. It comprises of Salaries, Wages, Incentives and Bonus expenses of Rs. 29.95 lakhs, Employers Contribution on EPF Rs 0.19 lakhs, Employers Contribution on ESI of Rs 0.12 lakhs and Directors Remuneration of Rs. 1.20 lakhs.
Finance Cost: -Finance cost during the stub period ended June 30, 2025 stood at Rs 44.86 lakhs. It comprises of Interest expense on Secured Loan, Unsecured Loan, Overdraft facility, Business Loan and Vehicle Loan. Further, Finance cost includes charges like Guarantee charges, Loan processing charges. The combined Interest on all loans comprises of 91.75 %of total Finance cost, while the aggregate of Finance cost stood at 2.34% of Total Income.
Depreciation and Amortization Expenses: - Depreciation & Amortization expenses during the stub period ended June 30, 2025 stood at Rs 9.06 lakhs due to depreciation of Building, Plant & Machinery, Motor vehicle, Furniture and Fixtures, Computer & Peripherals and Office Equipment of our Company.
Other Expenses: - Other Expense during the stub period ended June 30, 2025 stood at Rs 119.57 lakhs. The same is mainly due to Manufacturing expenditure, Administrative Expenses and Selling & Distribution Expenses which further comprises of Brokerage and commission, Stamp Duty Charges, Telephone Expenses, Licence renewal fee etc.
Restated Profit before Exceptional Items, Extraordinary Item & Tax: - Restated Profit before Exceptional Items, Extraordinary Item & Tax was Rs. 257.37 lakhs during the stub period ended June 30, 2025. It is 13.42% of Total Income.
Profit after Tax: -Our Company reported net profit after tax of Rs 194.17 lakhs during the stub period ended June 30, 2025. The net profit margin to revenue from operations is 10.38% on consolidation basis.
Details of Financial Year 2024-25 compared to Financial Year 2023-24 (Based on Restated Financial Statements)
Total Income: - The total Income for the Financial Year 2023-24 stood at Rs 4,919.21 lakhs whereas it increased by Rs.1,992.65 lakhs to Rs 6,911.86 lakhs in financial year 2024-25, representing an increase of 40.51%. This includes a significant increase in revenue from operation by Rs. 1,888.32 lakhs and an increase in other income by Rs 104.33 lakhs in FY 2024-25 as compared to FY 2023-24.
Revenue from Operations: - Revenue from Operation for Financial Year 2024-25 stood at Rs 6,719.68 lakhs as against Rs 4,831.36 lakhs in financial year 2023-24. This significant increase of 39.08% is majorly due to cumulative growth in production and sales in domestic and export along with more focus on PSU supply.
(Amount is Rs. in Lakhs)
REVENUE FROM OPERATIONS AS RESTATED |
March 31,2025 | March 31,2024 | Absolute change | Change |
| Amount in Lakhs | Amount in Lakhs | Amount in Lakhs | % | |
Sale of Products |
||||
| (i)Domestic Sale | 6,452.41 | 4,609.58 | 1,842.83 | 39.98% |
(ii)Export sales |
52.12 | 17.59 | 34.53 | 196.32% |
Sale of Services |
||||
| (i) Sales of Services from Subsidiaries | 20.74 | 10.09 | 10.65 | 105.56% |
| (ii) Contract Manufacturing Sales | 194.42 | 194.11 | 0.31 | 0.16% |
Total of Revenue from Operations |
6,719.68 | 4,831.36 | 1,888.32 | 39.08% |
Factors for increase in revenue in FY2025
1. Increase in demand: The company experienced a surge in demand for its products and services, driven by favourable market trends and increased customer interest. This growth in demand directly contributed to higher sales volumes and overall revenue. The segment wise growth in revenue is represented through the below table:
Particulars |
FY2025 Rs. in lakhs | FY2024 Rs. in lakhs | Growth |
| Contract Manufacturing | 194.42 | 194.11 | 0.16% |
| Supplies to Private | 4854.51 | 4047.51 | 19.94% |
| Supplies to PSUs | 633.53 | 367.96 | 72.17% |
| Exports | 52.12 | 17.59 | 196.32% |
2. Increase in govt tenders and PSU supply: Winning more government tenders and supplying to Public Sector Undertakings (PSUs) added a reliable and large-scale revenue stream. The company generated revenue from supplies to PSUs Rs. 633.53 lakhs in FY2025 compared to Rs. 367.96 lakhs in FY2024, which a jump of 72.17%. In proportion to total income, revenue from PSUs represents 9.17% in FY2025 whereas it was 7.48% in FY2024.
3. New product introduced: The company develops products as per the requirement of industries and PSUs and delivers the sample before final product. The samples delivered previous year; the company supplied final product in the FY2025 which contributed in increase in revenue as compared to FY2024.
Particulars |
2024-25 | 2023-24 |
| No of Product categories | 57 | 6 |
| No of Products in GEM | 420 | 142 |
4. Increased export demand: The company witnessed a substantial jump in the export of its product in FY2025 compared to previous year FY2024. Total export stood Rs. 52.12 lakhs in FY2025 whereas Rs. 17.59 lakhs in FY2024. In proportion to total income export is 0.78% in FY2025 compared to 0.36% in FY2024.
Other Income: - For the financial year 2024-25, our other income totalled Rs 192.18 lakhs, an increase from Rs 87.85 lakhs in the previous financial year 2023-24, reflecting an increase of Rs 104.33 lakhs, or 118.75%. This increase primarily stemmed from increase in discount received for bulk purchase Rs. 158.62 lakhs in FY2025 and gain from sale of mutual fund of Rs. 12.39 lakhs in FY2025. Other income forms 2.78% of total income in FY2025 compared to 1.79% of total income in FY2024.
Total Expenses: - Total Expense for Financial Year 2024-25 stood at Rs 6,207.24 lakhs compared to Rs 4,574.01 lakhs in financial year 2023-24 representing a substantial increase of 35.71%. The increase in expenses is due to jump in revenue and can be primarily attributed to the rise in expenses proportionate to revenue of our company. The total expenses in proportion to total Income constitute 89.81% in financial year 2024-25and 92.98% in financial year 2023-24.
Cost of Raw Materials Consumed: - Cost of Raw Material Consumed for Financial Year 2024-25stood at Rs 5,702.69 lakhs as compared to Rs 3,965.55 lakhs in financial year 2023-24 which reflects a jump of 43.81%. The consumption of raw materials has risen proportionally with the increase in revenue from operations. In FY 2025, revenue from operations grew by 39.08%.
Purchase of Traded Goods: - There were no Traded goods in FY 2023-24 & FY 2024-25.
Changes in Inventories of Finished Goods, Work-In-Progress and Stock in Trade: - Changes in Inventory of Finished Goods, Work in Progress and Stock in Trade for Financial Year 2024-25 stood at Rs (203.79) lakhs as compared to Rs (23.22) lakhs in financial year 2023-24, which is an increase of 877.73% To cater the rising demand and increasing sales we have increased our closing inventory. The closing inventory for FY2025 was Rs. 595.07 lakhs and for FY2024 Rs. 252.59 lakhs.
Employee benefits expense: - The Employee Benefits Expense for the Financial Year 2024-25 amounted to Rs 130.31lakhs, as compared to Rs 96.73 lakhs in the FY 2023-24. The primarily reason attributable to an increase of 34.72% is increase in Salaries and Wages from Rs. 84.31 lakhs in FY2024 to Rs. 120.03 lakhs in FY2025.
(Amount is Rs. in Lakhs)
EMPLOYEE BENEFITS EXPENSES AS RESTATED |
March 31, 2025 Amount in Lakhs |
March 31, 2024 Amount in Lakhs |
Absolute change Amount in Lakhs |
Percentage Change % |
Bonus |
3.83 | 3.53 | 0.30 | 8.49% |
Directors Remuneration |
4.80 | 4.80 | - | 0.00% |
Incentives paid to employee |
0.37 | 0.07 | 0.30 | 457.70% |
Employers Contribution on EPF |
0.79 | 0.74 | 0.05 | 6.33% |
Staff welfare Expenses |
- | 2.76 | (2.76) | -100.00% |
Employers Contribution on ESI |
0.49 | 0.52 | (0.03) | -5.17% |
Salaries and wages |
120.03 | 84.31 | 35.72 | 42.37% |
Total of Employee Benefits Expenses |
130.31 | 96.73 | 33.58 | 34.72% |
Finance Cost: -Finance Cost for Financial Year 2024-25 stood at Rs. 179.86 lakhs, as compared to Rs 143.74 lakhs in FY2023-24 which is an increase of 25.13%. The primary reason for increase in finance cost is attributable to increase in interest on OD and other short term business loan along with loan processing fee incurred during the FY2025.
(Amount is Rs. in Lakhs)
FINANCE COST AS RESTATED |
March 31, 2025 | March 31, 2024 | Absolute change | Change |
Interest on Loan |
Amount in Lakhs | Amount in Lakhs | Amount in Lakhs | % |
| Interest on Secured Loan | 55.95 | 60.00 | (4.06) | -6.76% |
| Interest on Unsecured Loan | 1.95 | 7.31 | (5.36) | -73.31% |
| Interest on OD | 45.61 | 34.87 | 10.74 | 30.79% |
| Interest on Business Loan | 41.85 | 22.95 | 18.90 | 82.38% |
| Interest on Vehicle Finance | 1.96 | 1.84 | 0.12 | 6.40% |
| Interest on NSIC | 10.74 | 5.60 | 5.14 | 91.68% |
| Foreclosure Charge | - | 3.92 | (3.92) | -100.00% |
| Loan Processing and Other Charges | 14.85 | 2.23 | 12.63 | 567.35% |
| Bank Charges | 6.96 | 5.03 | 1.93 | 38.46% |
Total of Finance Cost |
179.86 | 143.74 | 36.12 | 25.13% |
Depreciation and Amortization Expenses: - Depreciation & Amortization expenses for Financial Year 2024-25 stood at Rs 34.55 lakhs as compared to the same stood at Rs 23.98 lakhs in financial year 2023-24, representing an increase of 44.09%% from previous year, this is due to additions of Rs. 88.04 lakhs made in property plant and equipment during the FY2025. It has been observed that in financial year 2024-25 depreciation and amortisation represent 0.50% of Total Income whereas in financial year 2023-24 it contributes 0.49% of Total income. The change is negligible in terms of percentage of total income.
Other Expenses: - Other expenses of the company comprise of production expenses and administrative expenses. Totals other expenses during the FY2025 stood at Rs. 363.62 lakhs as compared to Rs. 367.23 lakhs in FY2024. The production expenses for FY2025 was Rs. 163.93 lakhs and Rs. 155.15 lakhs in FY2024. During the FY2025, the Company achieved a marginal reduction in administrative expenses when compared to FY 2024. During FY2024 the administrative expenses was Rs. 212.08 lakhs and 4.31% of the total revenue while for the FY2025 it was Rs. 199.68 lakhs and 2.89% of the revenue. This reduction under various heads has resulted approximately Rs. 12 lakhs of additional profits for the company during the FY2025. This reduction primarily resulted from decreased expenditure across several categories, including sales promotion, professional charges, office expenses, motor expenses, and conveyance and travel costs. Detailed comparison is given in below table:
Other Expenses As Restated |
31-Mar-25 | 31-Mar-24 | Absolute change | Percentage change | Reason for change |
| Amount in Lakhs | Amount in Lakhs | Amount in Lakhs | % | ||
Production Expenses |
|||||
| Carriage Inward | 106.88 | 87.40 | 19.48 | 22.29% | Due to increase in purchase of Raw material and carriage in to Factories. |
| Consumables | 15.97 | 20.92 | (4.95) | -23.66% | Company continuously putting efforts to better rationalization of multiple petty costs associated with Factory in as a result a trend of reduction in consumables is witnessed during FY2025. |
| License & Renewal Fees | 0.56 | 1.29 | (0.73) | -56.75% | A nominal decrease of 0.73 lakhs in FY2025 |
| Packing and Labelling | 4.53 | 11.47 | (6.95) | -60.56% | The Company had procured packing and labeling materials in bulk during |
| FY24 at favorable rates following a change in vendors, resulting in higher stock at the beginning of FY 25. | |||||
Administrative Expenses |
|||||
| Advertisement | 0.47 | 0.31 | 0.16 | 52.43% | A nominal increase of Rs. 0.16 lakhs in FY2025. |
| Auditors Remuneration | 4.00 | 2.16 | 1.84 | 85.19% | Due to Change in auditor to peer reviewed auditor and increase in audit frequency in FY2025. |
| Bad debts | 0.54 | (0.54) | -100.00% | No bad debts recorded in books in FY2025. | |
| Calibration Charges | 0.14 | 0.26 | (0.12) | -45.60% | Nominal decrease due to a lesser number of instruments were calibrated in Fiscal 2025. |
| Discount Allowed | 0.43 | 1.21 | (0.79) | -64.90% | Nominal decrease of 0.79 lakhs in FY2025. |
| Filing Fee | 4.46 | 0.31 | 4.15 | 1324.75% | Filing expenses have increased primarily due to IPO related filings including the increase in authorized share capital fees. |
| Insurance | 3.71 | 2.11 | 1.60 | 76.14% | Insurance premium |
| attributed to vehicles and machinery. Additions to property plant and equipment during the year contributed in increase in Insurance expense in FY2025. | |||||
| Fine & Penalty Charges | 3.31 | 0.49 | 2.82 | 573.35% | The increase is due to a strategic decision by the Company to settle all pending demands raised by income tax and other authorities pertaining to previous financial years. |
| Misc. Expenses | 0.47 | 1.30 | (0.83) | -63.92% | Nominal decrease due to decrease in general expense. |
| Rent, Rates & Taxes | 4.05 | 2.05 | 2.00 | 97.35% | General increase due to higher production. |
| Repairs & Maintenance | 3.14 | 5.57 | (2.43) | -43.63% | Reduction due to incidental repairs. |
| Sales Promotion | 20.10 | 29.48 | (9.38) | -31.81% | Lower promotional cost as company is more focused on existing sales network and no aggressive promotion during FY2025. |
Restated Profit before Exceptional Items, Extraordinary Item & Tax: - Restated Profit before Exceptional Items, Extraordinary Item & Tax was Rs 704.63 lakhs in FY2025 as compared to Rs 345.20 lakhs in FY2024. The Restated Profit before Exceptional Items, Extraordinary Item & Tax in proportion to the total income is 10.19% in FY2025 compared to 7.02% in FY2024. There is a jump of Rs 359.42 lakhs in earnings before extraordinary item in comparison to previous years performance.
Profit after Tax: -Our Company had reported net profit after tax of Rs 544.46 lakhs in FY2025 compared to Rs. 256.50 lakhs inFY2024. There is an increase in PAT by 112.27%. The Restated Profit After Tax (PAT) in proportion to the total income, is 7.88% in FY2025 and 5.21% in FY2024. Here are the factors contributing to higher PAT margin as compared to Rs. 256.50 lakhs in FY2024.
1. Growth in revenue: The revenue of the company grew from Rs. 4,919.21 lakhs in FY2024 to Rs. 6,911.86 lakhs in FY2025 which is 40.51% increase. This includes export revenue of Rs. 52.12 lakhs in FY2025 compared to Rs. 17.59 lakhs in FY2024, which is a 196.32% jump from previous year. The growth in revenue helped the company to achieve higher PAT of Rs. 544.46 lakhs in FY2025.
2. Reduction in administrative cost: During the FY2025, the Company achieved a marginal reduction in administrative expenses when compared to FY 2024. Total administrative cost of the company was Rs. 212.08 lakhs in FY2024 which company managed to restrict to Rs. 199.68 lakhs in FY2025. Though the companys operating revenue increased by 39.08%, the administrative cost on the contrary declined 1.40%. This helped in increase in margin and profit of the company for FY2025.
3. Increase in other income: The Company received a discount of Rs. 158.62 lakhs in FY2025 compared to Rs. 65.38 lakhs in FY2024 which forms 82.54% of total other income in FY2025 and 74.42% in FY2024. Additionally, Company recorded a one-time, non-recurring income from the sale of its investments held in the form of mutual funds. This transaction yielded a profit of H2.39 lakhs, contributing positively to the Companys overall profitability for the FY2025.
4. Decrease in other expenses: The Company could impressively restrict its other expenses below from Rs. 367.23 lakhs in FY2024 to Rs. 363.62 lakhs in FY2025, which is in proportion to revenue stands at 7.47% in FY2024 and 5.26% in FY2025, despite an increase in total revenue by 40.51% from Rs. 4,919.21 lakhs in FY2024 to Rs. 6,911.86 lakhs in FY2025. Factors attributed to savings in administrative expenses are as below:
a. Decrease in transport expenses: Motor car expenses decreased from Rs92.59 lakhs in FY24 to Rs86.67 lakhs in FY25 which is from 1.88% to 1.25% in proportion to revenue. This reduction is due to a strategic shift in the Companys logistics approach, where several smaller customers were offered discounted rates in exchange for taking transportation under their scope. This arrangement was implemented to streamline logistics, reduce the Companys operational overheads, and support more efficient cash flow management. As a result, the motor car expenses which relate to local deliveries significantly declined during the year.
b. Decrease in packing and labelling expenses: The decrease in packing and labelling expenses from H1.47 lakhs in FY24 to Rs4.53 lakhs in FY25 which is from 0.23% to 0.07% in proportion to revenue, primarily attributable to two factors.
First, the Company had procured packing and labelling materials in bulk during FY24 at favourable rates following a change in vendors, resulting in higher stock at the beginning of FY 25.
Secondly, the Company has undertaken a strategic decision to relaunch the automotive lubricant segment, leading to a temporary scale-down of operations in that category. As part of this transition, the Company focused on utilizing existing inventory of packaging materials while preparing for the relaunch of the automotive lubricant line with new containers and revised branding in H1 of FY26.
c. Savings in various heads of other expense: The company with its strategy and efficiency were able to make small savings in various heads of expenses which taken together helped the company to achieve a competitive margin. Savings in expense in proportion to revenue from FY2024 to FY2025 includes savings in carriage inward by placing bulk orders from 1.78% to 1.55%, Savings in consumables from 0.43% to 0.23%, Conveyance and traveling from 0.55% to 0.33% and Sales promotion from 0.60% to 0.29%. Though these expenses increased in absolute numbers but in proportion to revenue company were able to restrict them below previous year 2024.
Cumulatively due to these factors of other expenses company is able to make a net savings of 2.20% of revenue in FY2025.
Details of Financial Year 2023-24 compared to Financial Year 2022-23 (Based on Restated Financial Statements)
Total Income: - The total Income for the Financial Year 2022-23 stood at Rs 2,779.02 lakhs whereas it increased by Rs 2,140.20 lakhs to Rs. 4,919.21 lakhs in FY2023-24, representing an increase of 77.01%. This sharp increase is due to comparison of standalone with consolidated financial statement, whereas a 43.90% increase in revenue is recorded on the stand-alone financials basis. This includes a significant increase in revenue from operation by Rs. 2,082.39 lakhs and an increase in other income by Rs 57.81 lakhs in FY 2023-24 as compared to FY 2022-23.
Revenue from Operations: - Revenue from Operation for Financial Year 2023-24 stood at Rs 4,831.36 lakhs as against Rs 2,748.97 lakhs in financial year 2022-23. This impressive increase of 75.75% is primarily attributed to the growth in production and sale of wide range of products across India and abroad. The increase as per standalone basis is 43.21%. This increase in the sales can be attributed to a combination of various factors:
(Amount is Rs. in Lakhs)
| REVENUE FROM OPERATIONS AS RESTATED | March 31, 2024 | March 31,2023 | Absolute change | Percentage Change |
| Amount in Lakhs | Amount in Lakhs | Amount in Lakhs | % | |
Sale of Products (i)Domestic Sale |
4,609.58 | 2,479.90 | 2,129.67 | 85.88% |
| (ii)Export sales | 17.59 | 32.67 | (15.08) | 46.17% |
Sale of Services (i) Sales of Services from Subsidiaries |
10.09 | 10.09 | 100.00% | |
| (ii) Contract Manufacturing Sales | 194.11 | 236.39 | (42.29) | 47.89% |
Total of Revenue from Operations |
4,831.36 | 2,748.97 | 2,082.39 | 75.75% |
1. Expanded Product Portfolio: In Financial Year 2024, company expanded its product base by introducing a variety of products like marine engine oil, specialized greases, and turbine oil. Our company catered to niche markets and diverse industries, attracting a broader customer base. A larger portfolio reduced dependency on specific products and industries, spreading risk while increasing sales. Venturing into the agricultural segment with products like tractor oils and coolants addressed the needs of a previously underserved but high-demand market, broadening revenue sources. Products like thermic fluid, refrigeration oil, and wire drawing oil found a growing market among industries requiring precise, high-performance formulations. For more details of our wide variety of Products refer chapter “Our Business” on page 187 of this Red Herring Prospectus
2. Enhanced B2B Partnerships: By strengthening our relationships with industrial clients, we ensured a consistent demand for key products such as hydraulic oils, gear oils, and transformer oils. The establishment of long-term contracts and bulk purchasing agreements played a pivotal role in stabilizing our revenue and fostering growth. Notably, we successfully secured orders from some of the major Public Sector Undertakings (PSUs).
3. Entry into B2C and retailer Markets: Our strategic shift towards the B2C and retailer segment has allowed us to tap into a burgeoning market characterized by the rising ownership of personal and commercial vehicles. By focusing on high-demand products such as diesel engine oil and antifreeze coolants, we have effectively positioned ourselves to meet the needs of a diverse customer base. To further enhance our market presence, we established strong connections with local garages and industries, enabling us to better cater to their specific requirements. This initiative not only expands our reach but also strengthens our commitment to providing tailored solutions for our customers in the retail space.
4. Increased Industrial Demand: Post-pandemic economic recovery drove industrial growth, leading to higher consumption of machine oils, cutting oils, and rust preventive oils. This recovery was bolstered by increased manufacturing activity and infrastructure projects. As per Maximize Market Research report, the market size of Automative Lubricant in India grew from 2.70 billion Liters in 2023 to 2.87 billion Liters in 2024. Please refer chapter “Industry Overview” for details of Industry growth on page number 167 of this Red Herring Prospectus
Other Income: - For the financial year 2023-24, our other income totalled Rs 87.85 lakhs, an increase from Rs 30.05 lakhs in the previous financial year (2022-23), reflecting an increase of Rs 57.80 lakhs, or 192.35%. This increase primarily stemmed from increase in discount received for bulk purchase made to cater increasing demand. However, the figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone increase in FY2024 is 107% from FY2023.
Total Expenses: - Total Expense for Financial Year 2023-24 stood at Rs 4,574.01 lakhs whereas Rs 2,723.84 lakhs in financial year 2022-23 representing a substantial increase of 67.92%. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone increase in FY2024 is 35.03% from FY2023. The growth in total expenses is due to revenue growth and can be primarily attributed to the rise in expenses proportionate to revenue of our company. It has been analysed that total expenses in proportion to total Income constitute 92.98% in financial year 2023-24 and 98.01% in financial year 2022-23. Our Company has successfully reduced sales commissions and brokerage costs, classified under "Other Expenses," through better negotiation strategies, which have contributed to maintaining a more efficient cost structure. Additionally, lower depreciation expenses during the period have further supported a reduction in overall costs, enhancing operational efficiency.
Cost of Raw Materials Consumed: - Cost of Raw Material Consumed for Financial Year 2023-24 stood at Rs 3,965.55 lakhs as compared to Rs 2150.42 lakhs in financial year 2022-23. This represents a significant increase of 84.41%. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone increase in FY2024 is 48.18% from FY2023. This is due to our company experiencing a notable expansion in production during the Financial Year 2023-24. The consumption of raw material is in tune with increase in Revenue from operations. The revenue from operations has increased by 75.75 % in FY 2024.
Purchase of Traded Goods: - There were no Traded goods in FY 2023-24 & FY 2022-23.
Changes in Inventories of Finished Goods, Work-In-Progress and Stock in Trade: - Changes in Inventory of Finished Goods, Work in Progress and Stock in Trade for Financial Year 2023-24 stood at Rs (23.22) lakhs whereas Rs (11.69) lakhs in financial year 2022-23, representing an increase of 98.60%. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone increase in FY2024 is 16.58% from FY2023. To cater the rising demand and increasing sales we have increased our closing inventory. Our company had closing stock of Rs 252.59 lakhs in FY 2024 and Rs 84.33 lakhs in FY 2023.
Employee benefits expense: - The Employee Benefits Expense for the Financial Year 2023-24 amounted to Rs 96.73 lakhs, whereas Rs71.63 lakhs in the preceding financial year, 2022-23. The change in employee benefit expenses is primarily attributable to an increase of 75% in Salaries and Wages and Bonus of employees, additionally a substantial decrease in directors remuneration, which dropped from Rs21.30 lakhs in FY 2022-23 to Rs4.8 lakhs in FY 2023-24. The decision is part of our broader strategy to enhance financial efficiency while maintaining focus on sustainable business development. Other employee benefit components have been carefully managed to ensure operational continuity and workforce stability, supporting our commitment to achieving organizational goals. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone employee benefits have a decline of 14% in FY2024 from FY2023.
(Amount is Rs. in Lakhs)
EMPLOYEE BENEFITS EXPENSES AS RESTATED |
March 31, 2024 Amount in Lakhs |
March 31,2023 Amount in Lakhs |
Absolute change Amount in Lakhs |
Percentage Change % |
Bonus |
3.53 | 1.04 | 2.49 | 23S.63% |
Directors Remuneration |
4.S0 | 21.30 | (16.50) | -77.46% |
Incentives paid to employee |
0.07 | - | 0.07 | 100.00% |
Employers Contribution on EPF |
0.74 | 0.83 | (0.09) | -10.75% |
Staff welfare Expenses |
2.76 | - | 2.76 | 100.00% |
Employers Contribution on ESI |
0.52 | 0.39 | 0.13 | 33.26% |
Salaries and wages |
84.31 | 48.07 | 36.24 | 75.39% |
Total of Employee Benefits Expenses |
96.73 | 71.63 | 25.10 | 35.03% |
Finance Cost: -Finance Cost for Financial Year 2023-24 stood at Rs 143.74 lakhs marking an increase from preceding financial year, 2022-23 where the cost was reported at Rs 92.99 lakhs. This represents an increase of 54.57%. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. Standalone increase in FY2024 is 16.15% from FY2023.The rise in finance costs can be attributed to enhancement in short-term borrowings of our company. The rise in interest payment primarily is due to short term borrowings. There is an increase in short term borrowings by Rs 234.42 lakhs in FY 2023-24 as compared to FY 2022-23. When assessing the proportion of finance costs in relation to the total income, it is observed that in the financial year 2023-24, these costs constituted 2.92% of the total income whereas in financial year 2022-23, it constituted 3.35 % of total income.
(Amount is Rs. in Lakhs)
FINANCE COST AS RESTATED |
March 31, 2024 Amount in Lakhs |
March 31, 2023 Amount in Lakhs |
Absolute change Amount in Lakhs |
Change % |
Interest on Loan |
||||
Interest on Secured Loan |
60.00 | 40.79 | 19.22 | 47.11% |
Interest on Unsecured Loan |
7.31 | 17.41 | (10.10) | -58.02% |
Interest on OD |
34.87 | 16.14 | 18.73 | 116.08% |
Interest on Business Loan |
22.95 | 6.22 | 16.72 | 268.81% |
Interest on Vehicle Finance |
1.84 | 0.66 | 1.18 | 180.61% |
Interest on NSIC |
5.60 | - | 5.60 | 100.00% |
Foreclosure Charge |
3.92 | - | 3.92 | 100.00% |
Loan Processing and Other Charges |
2.23 | 11.34 | (9.11) | -80.37% |
Bank Charges |
5.03 | 0.45 | 4.58 | 1016.48% |
Total of Finance Cost |
143.74 | 92.99 | 50.75 | 54.57% |
Depreciation and Amortization Expenses: - Depreciation & Amortization expenses for Financial Year 2023-24 stood at Rs 23.98 lakhs whereas the same stood at Rs 51.13 lakhs in financial year 2022-23, representing a decrease of (53.11) % from previous year, this is due to change in method of Depreciation represent 0.49% of Total Income whereas in financial year 2022-23 it contributes 1.84% of Total income. The change is higher due to figures for FY2024 are consolidated and for the FY2023 standalone.
Other Expenses: - Other Expense for Financial Year 2023-24 stood at Rs 367.23 lakhs reflecting a minimal decrease of 0.58% from the Financial Year 2022-23, where the expenses stood at Rs. 369.35 lakhs. The figures for FY2024 are consolidated hence not comparable with the standalone FY2023. In the standalone a decline of 15.10% in FY2024from FY2023. It has been analysed that proportion of other expenses with the total income constitute 7.47% in the financial year 2023-24 whereas in financial year 2022-23, they contribute 13.29% of total income. Detailed comparison is given in below table:
OTHER EXPENSES AS RESTATED |
March 31, 2024 Rs. in Lakhs | March 31, 2023 Rs. in Lakhs | Absolute change Rs. in Lakhs | Percentage change | Reason for change |
Production Expenses |
|||||
| Electricity Expenses | 12.12 | 5.61 | 6.51 | 116.09% | Due to increase in Activity in electricity-based machineries and general electricity consumption. |
| Factory Consumables | 20.92 | 28.18 | (7.26) | -25.77% | Better rationalization of multiple petty costs associated with Factory in Fiscal 2024. |
| Rate difference in purchases | - | 14.82 | (14.82) | -100.00% | One time charge for difference in rate treated as other expenses |
| Filling Service Charges | 20.05 | 13.97 | 6.08 | 43.53% | Increased filling activity coupled with resumption of major PSU contract |
| Tender Fees | 1.90 | 0.44 | 1.46 | 330.85% | Increase due to increase in PSU tender participation |
Administrative Expenses |
|||||
| Advertisement | 0.31 | 0.70 | -0.39 | -56.11% | Contract for billboard not renewed due to change in marketing policy |
| Auditors Remuneration | 2.16 | 1.41 | 0.75 | 53.19% | Increase due to increased workload with higher sales |
| Brokerage & Commission | 14.55 | 35.47 | -20.91 | -58.97% | Our company entered into a one-time agreement with sales commission agents, offering a fixed percentage of sales as their commission in Fiscal 2023 to support the expansion of the customer base. |
| Bad debts | 0.54 | 18.97 | -18.43 | -97.18% | Most bad debts of older years already recognized in Fiscal 2022 and Fiscal 2023 hence reduction |
| Calibration Charges | 0.26 | 0.16 | 0.10 | 66.01% | Nominal increase due to a greater number of instruments were calibrated in Fiscal 2024. |
| Conveyance & travelling | 27.02 | 13.88 | 13.14 | 94.70% | General Increase due to increased activity. |
| Discount Allowed | 1.21 | 7.69 | -6.48 | -84.24% | A volume discount was offered to customers during the financial year 2022-23 as an incentive for high- value purchases made by them. |
| Electrical Exp | 1.36 | 2.13 | -0.77 | -35.98% | Incidental decrease due to lesser occurrences of disruption during the year. |
| Export & Shipping Charges | 0.38 | 0.00 | 0.38 | 100.00% | Increase due to first export to Bangladesh in financial year 2024. |
| Filing Fee | 0.31 | 0.01 | 0.30 | 2511.33% | Increase due to filing of one-time CHG1 forms (Creation of Charge Form). |
| Insurance | 2.11 | 3.73 | -1.62 | -43.54% | Reduction is attributed to lower premium charges due to age of vehicles |
| Interest on Statutory Dues | 2.70 | 1.52 | 1.18 | 77.38% | General increase due to higher tax amount payable. |
| Fine & Penalty Charges | 0.49 | 0.66 | -0.17 | -25.51% | Company has followed better compliance to regulations in FY 2024, therefore resulting in lower cost. |
| Misc Expenses | 1.3 | 0.21 | 1.09 | 523.17% | General increase in misc expenses. |
| Professional & Legal Charges | 7.63 | 13.25 | -5.62 | -42.38% | Professional fees paid for service in Fiscal 2023 |
| Rent, Rates & Taxes | 2.05 | 0.84 | 1.21 | 143.74% | General increase due to higher production |
| Repairs & Maintenance | 5.57 | 35.18 | -29.61 | -84.17% | Reduction since major onetime overhauling taken up to increase the life of the old machines and kettles in Fiscal 2023 |
| Sales Promotion | 29.48 | 6.05 | 23.43 | 387.34% | Higher promotional costs due to increase visibility. |
| Security Charges | 12.04 | 8.76 | 3.28 | 37.42% | Increase in charges due to increased manpower for security |
| Transport Expenses | 92.59 | 53.21 | 39.38 | 74.01% | Increase in transport expenses due to strategy to provide local transport for supply of materials to boost sales. |
Restated Profit before Exceptional Items, Extraordinary Item & Tax: - Restated Profit before Exceptional Items, Extraordinary Item & Tax was Rs 345.20 lakhs in Financial Year 2023-24 as compared to Rs 55.18 lakhs in financial year 2022-23. This remarkable increase is mainly due to the significant improvement in our Companys financial performance during the financial year 2023-24. When analysing the Restated Profit before Exceptional Items, Extraordinary Item & Tax in proportion to the total income, it is observed that in the financial year 2023-24, this profit represented 7.02% of the total income whereas in financial year 2022-23, this contributes 1.99% of total income. There is a huge jump of Rs290.03lakhs in earnings before extraordinary item in comparison to previous years performance. This is due to the fact that our Company could save on Brokerage and commissions, Repairs & Maintenance, Factory Expenses, Professional Charges by Rs 20.91 lakhs, Rs 29.61 lakhs, Rs 7.26 lakhs, Rs 5.62 lakhs respectively in comparison to FY 2023. Further, the depreciation expenditure reduced from Rs 51.13 lakhs to Rs. 23.98 lakhs in FY 2023-24. Furthermore, there is Rs 18.97 lakhs of bad debt in FY2023 which has come down to Rs 0.54 Lakhs in FY2024 thus boosting the profit.
Profit after Tax: -Our Company had reported net profit after tax of Rs 256.50 lakhs in financial year 202324, which marks a substantial increase from the preceding financial year, 2022-23, where the PAT was Rs 39.82 lakhs. There is an increase in PAT by 544.11%. When analysing the Restated Profit After Tax (PAT) in proportion to the total income, it is observed that in the financial year 2023-24 PAT represented 5.21% of the total income whereas in financial year 2022-23, PAT contributes 1.43% of total income. Here are the factors contributing to higher PAT margin:
1. Increase in Total Income: Our Company recorded 77.01% increase in total income during FY 2023-24 compared to FY 2022-23. This surge in revenue was a key contributor to the sharp rise in profitability, as it allowed our Company to leverage its operational efficiencies and achieve better margins.
2. Increasing Sales with Higher Profitability: This robust performance was primarily driven by higher sales volumes and improved pricing strategies. During the same period, the cost of raw materials per unit declined by 7.18% (from Rs79.41/liter in FY 2023 to Rs73.71/liter). Although the Company partially passed on these cost savings to customers—resulting in a 5.16% reduction in the average selling price—it successfully enhanced its profit margins. During this period the revenue of the company has increased by 75.77% (from Rs. 2748.97 lakhs in FY 2023 to Rs. 4831.36 lakhs in FY 24), driven by more units sold despite a 5.49% decrease in selling price. The strategic approach of balancing reduced material costs with optimized pricing, coupled with increased sales volumes, significantly contributed to the Companys improved profitability and overall financial performance.
Summary of Product Economics |
||||||
Raw Material Inputs |
Finished Products |
|||||
FY |
Purchase Value Rs. | WAC/liter Rs. | Cost Variation | Sale Value Rs. | WASP/liter Rs. | Variation |
22- 23 |
199,713,437 | 79.41 | 17.95% | 242594843.78 | 91.13 | 22.13% |
23-24 |
307,658,290 | 73.71 | -7.18% | 364733590.85 | 86.43 | -5.16% |
3. Reduction in Brokerage & Commission: The Company achieved a significant reduction in brokerage and commission expenses, which decreased from Rs35.47 lakhs in FY 2023 to H4.55 lakhs in FY 2024. This reduction was primarily attributable to the expiration of brokerage and commission agreements post-FY 2023. The Company made a strategic decision not to renew these agreements, as it was able to retain its end- customer business through effective relationship management and direct engagement.
4. Reduction in Employee Benefits: In FY2024 the employee benefits expenses came down to 1.97% of the revenue as compared to 2.58% in FY2023. During FY 2024, the Company significantly reduced the managerial remuneration paid to its directors which totaled Rs4.80 lakhs compared to Rs21.30 lakhs in FY
2023. The reduction in remuneration has positively contributed to the Companys improved profitability for FY 2024.
5. Change in method of Depreciation: In FY 2024, our company shifted from the Written Down Value (WDV) method to the Straight-Line Method (SLM) for calculating depreciation. This change in accounting policy was undertaken to present a more accurate and fair representation of asset usage and financial performance. Details of change in accounting estimate is given under Section - VI, “Restated Financial statement”, page no. 296 of this Red Herring Prospectus. As a result, depreciation expenses decreased significantly by 53.11%, from Rs 51.13 lakhs in FY 2023 to Rs 23.98 lakhs in FY 2024, contributing to a higher PAT.
LIQUIDITY AND CAPITAL RESOURCES:
We have been able to finance our capital requirements and the expansion of our business and operations through a combination of funds generated from our operations, equity infusions from shareholders and debt financing, and we expect to continue to do so. Our primary capital requirements are for repayment of for Working Capital, Capital Expenditure and General Corporate Purpose for our operations.
We believe that after taking into account the expected cash to be generated from our business and operations, the Net Proceeds from the Fresh Issue and the proceeds from our existing bank loans, we will have sufficient capital to meet our anticipated requirements for our Working Capital, Capital Expenditure and General Corporate Purpose requirements for the 12 months following the date of this Red Herring Prospectus. For the period April 1, 2025 to June 30, 2025 and Financial year ended on March 31, 2025, March 31, 2024, and March 31, 2023, we had cash and cash equivalents (comprising of cash on hand and balances with banks) of Rs. 148.48 lakhs, Rs 493.44 lakhs, Rs 180.39 lakhs and Rs 178.50 lakhs respectively as per our Restated Financial Statements.
CASH FLOW:
The table below summaries our cash flows from our Restated Financial Information for the Stub period ended June 30, 2025, financial year ended March 31, 2025, March 31, 2024 and March 31, 2023.
(Amount Rs. in lakhs)
Particulars |
June 30, 2025 Amount Rs. in Lakhs | March 31, 2025 Amount Rs. in Lakhs | March 31, 2024 Amount Rs. in Lakhs | March 31, 2023 Amount Rs. in Lakhs |
| Consolidated | Consolidated | Consolidated | Standalone | |
| Net cash from operating activities | (268.90) | (78.05) | 11.13 | (241.16) |
| Net cash flows from investing activities | (9.24) | (415.56) | (327.65) | 58.94 |
| Net cash flow from in financing activities | (66.82) | 806.65 | 297.38 | 202.01 |
| Net increase/(Decrease) in cash and cash equivalents | (344.97) | 313.05 | (19.14) | 19.79 |
| Cash and cash equivalents at the beginning of the year | 493.44 | 180.39 | 199.53* | 158.70 |
| Cash and cash equivalents at the end of the year | 148.48 | 493.44 | 180.39 | 178.50 |
*This is consolidated balance taking into account of OPRS (subsidiary) balance Rs. 21.02 lakhs Operating Activities:
Stub Period ended June 30, 2025 Consolidated
Our net cash used in operating activities was Rs. (268.90) lakhs for the stub period ended on June 30, 2025. Our operating profit before working capital changes was Rs. 306.64 lakhs which was primarily adjusted for changes in working capital comprising of Trade Payables of Rs. (55.52) lakhs, Other Current Liabilities of Rs. 1.27 lakhs, Trade Receivable of Rs. (240.42) lakhs, Inventories of Rs. (111.66) lakhs, Short Term Loans and Advances of Rs. (152.09) lakhs and Other Current Assets of Rs. (17.43) lakhs and Short-Term Provisions of Rs 62.55 lakhs.
FY 2024-2025 Consolidated
Our net cash used in operating activities was Rs. (78.05) lakhs for the year ended on March 31, 2025. Our operating profit before working capital changes was Rs.877.66 lakhs which was primarily adjusted for changes in working capital comprising of Trade Payables of Rs. (50.45) lakhs, Other Current Liabilities of Rs. (103.87) lakhs, Trade Receivable of Rs. (355.73) lakhs, Inventories of Rs. (342.48) lakhs, Short Term Loans and Advances of Rs. 69.06 lakhs and Other Current Assets of Rs. (83.32) lakhs and ShortTerm Provisions of Rs 67.92 lakhs.
FY 2023-2024 Consolidated
Our net cash generated from operating activities was Rs. 11.05 lakhs for the year ended on March 31, 2024. Our operating profit before working capital changes was Rs 491.89 lakhs which was primarily adjusted for changes in working capital comprising of Trade Payables of Rs 72.15 lakhs, other current liabilities of Rs. (76.05) lakhs, Trade Receivables of Rs. (326.72) lakhs, Inventories of Rs. (100.16) lakhs, Short-Term loans and advances of Rs. 0.44 lakhs, Other current assets of Rs. (31.76) lakhs and ShortTerm Provisions of Rs 64.11 lakhs.
FY 2022-2023 Standalone
Our net cash generated used in operating activities was Rs. (241.61) lakhs for the year ended on March 31, 2023. Our operating profit before working capital changes was Rs 191.09 lakhs which was primarily adjusted for changes in working capital comprising of Trade Payables of Rs (8.53) lakhs, other current liabilities of Rs. 88.47 lakhs, Trade Receivables of Rs. (96.66) lakhs, Inventories of Rs. 15.40 lakhs, shortterm loans and advances of Rs. (401.82) lakhs, Other current assets Rs (20.15) lakhs and Short-Term Provisions of Rs 10.03 lakhs.
Investing Activities
Stub Period 30.06.205 Consolidated
Net cash used in investing activities was Rs. (9.24) lakhs for the stub period ended on June 30, 2025. This was primarily on account of receiving of Interest on Investment of Rs 0.95 Lakhs, Purchase of Fixed Assets net of sales amounting to Rs. (7.59) lakhs, purchase of mutual fund for Rs. (2.50) lakhs and increase of Non-current Asset of Rs (0.11) lakhs.
FY 2024-2025 Consolidated
Net cash used in investing activities was Rs. (415.56) lakhs for the year ended on March 31, 2025. This was primarily on account of receiving of Interest on Investment of Rs 6.63, Purchase of Fixed Assets net of sales amounting to Rs. (87.56) lakhs, Increase in Non-Current Investment amounting to Rs. (397.39) lakhs, Sale proceeds of mutual fund for Rs. 63.28 lakhs and increase of Non-current Asset of Rs (0.51) lakhs.
FY 2023-2024 Consolidated
Net cash used in investing activities was Rs. (327.65) lakhs for the year ended on March 31, 2024. This was primarily on account of receiving of Interest on Investment of Rs 9.73 lakhs, Purchase of Fixed Assets net of sales amounting to Rs. (139.97) lakhs, Increase in non-current Investment Rs. (144.12) lakhs, purchase of Current Investment net of sales amounting to Rs. (61.10) lakhs, and Decrease in Non-current Asset of Rs 7.81 lakhs.
FY 2022-2023 Standalone
Net cash generated from investing activities was Rs. 58.94 lakhs for the year ended on March 31, 2023. This was primarily on account of receiving of Interest on Investment of Rs 8.53, Purchase of Fixed Assets amounting to Rs. (20.64) lakhs and sale of Non-current Asset of Rs 71.05 lakhs.
Financing Activities
Stub Period ended June 30, 2025 Consolidated
Net cash flow from financing activities for the stub period ended on June 30, 2025 was Rs. (66.83) lakhs. This was primarily on account of repayment of Long-Term Borrowing of Rs. (263.68) lakhs, increase in Short-term borrowing of Rs. 238.01 lakhs and Interest paid of Rs. (41.16) lakhs.
FY 2024-2025 Consolidated
Net cash flow from financing activities for the year ended on March 31, 2025 was Rs. 806.65 lakhs. This was primarily on account of proceeds of Long-Term Borrowing of Rs. 486.09 lakhs, decrease in Shortterm borrowing of Rs. (109.39) lakhs, Proceeds from Issue of Shares Rs 588.00 and Interest paid of Rs. (158.05) lakhs.
FY 2023-2024 Consolidated
Net cash flow from financing activities for the year ended on March 31, 2024 was Rs. 297.46 lakhs. This was primarily on account of repayment of Long-Term Borrowing of Rs. (59.78) lakhs, increase in short term borrowing of Rs. 480.96 lakhs, Proceeds from issue of shares Rs. 15 lakhs and Interest paid of Rs. (138.72) lakhs.
FY 2022-2023 Standalone
Net cash generated from financing activities for the year ended on March 31, 2023 was Rs. 202.01 lakhs. This was primarily on account of proceeds from Long-Term Borrowings of Rs. 186.25 lakhs, increase in Short-term borrowings of Rs 108.77 lakhs and interest paid amounting to Rs (93.00) lakhs.
FINANCIAL MARKET RISKS
We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation. INTEREST RATE RISK
We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.
EFFECT OF INFLATION
We are affected by inflation as it has an impact on the material cost, operating cost, staff costs etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.
OTHER MATTERS INFORMATION REQUIRED AS PER ITEM 11 (II) (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI (ICDR) REGULATIONS. 2018:
1. Unusual or infrequent events or transactions
Except 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. 42 of this 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 sales. revenue or income from continuing operations.
Apart from the risks as disclosed under Section titled “Risk Factors” beginning on page no. 42 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, government policies and other economic factor.
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 is engaged in production and manufacture of wide range of Lubricant products.
6. Total turnover of each major industry segment in which the issuer company operated.
Our company operates in Lubricant Industry. Relevant industry data, as available, has been included in the chapter titled “Industry Overview” beginning on page 42 of this Red Herring Prospectus.
7. Status of any publicly announced new products or business segment.
“Our Business” beginning on Page 187 in this Red Herring Prospectus.
8. The extent to which business is seasonal.
Our business does not depend to a certain extent on the seasonal, environmental and climate changes. Hence, our business is not seasonal in nature.
9. Any significant dependence on a single or few suppliers or customers.
Our income is not dependent on a single customer or supplier or a few customers or suppliers. Further, no customer or supplier contributes to a significant portion of our business. Contribution of our customers and suppliers, as a percentage of total revenue and purchase, respectively, for the periods indicated below:
Top 5 and Top 10 Customers
Amount Rs. in lakhs
Particulars |
For Stub Period ended on June 30, 2025 (Consolidated |
For Financial Year ended on March 31, 2025 (Consolidated) |
For Financial Year ended on March 31, 2024 (Consolidated) |
For Financial Year ended on March 31, 2023 (Standalone) |
||||
| Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | |
Top 5 |
674.90 | 36.07 | 2273.38 | 33.83 | 1431.23 | 29.57 | 1120.20 | 40.79 |
Top 10 |
878.94 | 46.98 | 2802.22 | 41.70 | 1730.16 | 35.81 | 1433.60 | 52.12 |
Top 5 and Top 10 Suppliers
Amount Rs. in lakhs
Particulars |
For Stub Period ended on June 30, 2025 (Consolidated) |
For Financial Year ended on March 31, 2025 (Consolidated) |
For Financial Year ended on March 31, 2024 (Conso idated) |
For Financial Year ended on March 31, 2023 (Standalone) |
||||
| Amount | % of Purchase | Amount | % of Purchase | Amount | % of Purchase | Amount | % of Purch ase | |
Top 5 |
1329.33 | 84.80 | 5035.34 | 86.20 | 3365.84 | 83.26 | 1541.28 | 82.46 |
Top 10 |
1449.78 | 92.49 | 5279.38 | 90.38 | 3597.19 | 88.98 | 1675.17 | 89.62 |
10. Competitive conditions:
We face competition from existing and potential competitors which is common for any business. Over a period of time, we have developed certain competitive strengths which have been discussed in section titles “Business Overview” beginning on page 187 of this Red Herring Prospectus.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund & Specialized Investment Fund Distributor), PFRDA Reg. No. PoP 20092018
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
