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Super Iron Foundry Ltd Management Discussions

49.5
(10.00%)
Oct 23, 2025|03:08:00 PM

Super Iron Foundry Ltd Share Price Management Discussions

ECONOMIC REVIEW

The global economy in FY 2024–25 is navigating a period marked by a tenuous but resilient recovery from recent macroeconomic shocks. As per the IMFs July 2024 World Economic Outlook, global GDP is forecast to grow at 3.2% in 2024 and 3.3% in 2025, with expansion supported by advances in technology, robust consumer demand in select markets, and increased infrastructure investment across Asia and the U.S. However, growth remains unequally distributed: while services and information technology demonstrate continued momentum, advanced economies like the U.S. and Eurozone face sluggish expansion (1.8% and 0.9%, respectively), and emerging markets benefit from structural reforms and digitalization. Chinas projected growth moderates to 5.0%, reflecting both domestic policy shifts and ongoing demographic transitions. The inflation outlook is cautiously optimistic. G20 inflation is projected to trend downward, from 6.2% in 2024 to under 3.6% by 2025, though the trajectory varies by region. Persistently high services inflation and exposure to energy and commodity shocks especially in volatile geopolitical environments such as the Middle East and Eastern Europe pose downside risks. International trade volumes are forecast to recover gradually, aided by easing supply chain bottlenecks and ongoing investment in logistics and manufacturing automation.

Outlook

The path forward for the global economy is described as "cautiously optimistic." Recovery is dependent on policymakers ability to facilitate smoother trade relations, macroeconomic stability, and effective inflation targeting. Resolution of ongoing geopolitical conflicts, successful transitions toward energy sustainability, and progress in digital infrastructure will be key drivers of future growth. Risks include renewed inflation due to energy price shocks, unexpected monetary tightening, supply chain fragility, and escalation in geopolitical confrontations.

India

India reaffirms its position as the worlds fastest-growing major economy for FY 2024–25. According to the IMF, Indias GDP growth is forecast at 7.0% for the fiscal. This bullish momentum is underpinned by robust domestic demand, record government infrastructure outlay, and a resilient manufacturing and IT sector. Private consumption, infrastructure spending, and exports of goods and services are major contributors to growth, while inflation is managed around the Reserve Bank of Indias comfort band at approximately 5%.

Indias forex reserves stand at historic highs (over $670B, covering 11 months of imports), giving stability against external shocks. Landmark government initiatives like Make in India, Smart Cities Mission, Jal Jeevan Mission, and the Production Linked Incentive (PLI) scheme catalyze capital formation, domestic value addition, and employment. Policy reforms over the past decade in taxation (GST), insolvency and bankruptcy, real estate, digital payments (UPI), and labor regulations have furthered economic diversification and productivity.

Outlook

The macroeconomic outlook for India remains positive. Growth will be propelled by government investment cycles (including road, rail, water, and energy projects), revived rural consumption, and an expanding start-up and digital services ecosystem. Downside risks emanate primarily from global commodity volatility and potential external demand shocks. However, Indias diversified economic base, stable policy environment, and proactive reform agenda are anticipated to maintain the growth trajectory.

Sources: https://www.imf.org/-/media/Files/Publications/WEO/2024/Update/July/English/text.ashx https://www.imf.org/en/Publications/WEO/Issues/2024/07/16/world-economic-outlook-update-july-2024 http://mediacenter.imf.org/news/imf---world-economic-outlook-july-2024-update/s/6ae9bf9c-586c-4078-8e5c-90ace9de89b1 https://economictimes.com/news/economy/finance/rbi-has-a-plan-to-keep-indias-foreign-exchange-reserves-safe-from-external-shocks/articleshow/121508115.cms https://en.wikipedia.org/wiki/Foreign-exchangefireserves_of_India https://www.southindianbank.com/blog/general-topics/indian-economy-presents-a-picture-of-stability-and-strength-rbi-governor https://economictimes.com/news/economy/indicators/rbi-inflation-2024-insights-on-india-price-stability-and-economic-strategy-rbi-holds-inflation-forecast-at-4-5-stability-or-risk-ahead/articleshow/114065553.cms https://www.pib.gov.in/PressNoteDetails.aspx?id=154736&NoteId=154736&ModuleId=3 https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2085711 https://www.meity.gov.in/static/uploads/2024/02/AR_2022-23_English_24-04-23-1.pdf https://www.meity.gov.in/static/uploads/2024/02/31-1.pdf https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146815

INDUSTRY STRUCTURE AND DEVELOPMENT Municipal Castings and Infrastructure Global Overview & Outlook

The global municipal castings and foundry industry represents a critical pillar of urban infrastructure development, encompassing essential components such as manhole covers, drainage grates, utility access systems, and water infrastructure hardware. The industry demonstrates substantial scale and continued growth momentum, supported by comprehensive data from authoritative international organizations. According to the World Foundry Organization (WFO), global casting production reached 109.8 million metric tons in 2017, representing a 5.3% increase compared to the previous year. The industry encompasses approximately 45,954 foundries worldwide, with operations distributed across major manufacturing regions, reflecting the diverse and distributed nature of global foundry operations.

The municipal castings sector benefits from accelerating urbanization trends, infrastructure modernization programs, and smart city initiatives worldwide. Urban infrastructure revamps, expansion in public utilities, and implementation of advanced sewer and stormwater networks drive consistent demand for high-quality casting components. The integration of Internet of Things (IoT) technologies and smart infrastructure solutions creates new opportunities for technologically advanced municipal casting products. Quality benchmarks, particularly EN124 and ISO standards, increasingly drive procurement decisions and export opportunities as municipalities worldwide prioritize durability, safety, and compliance with international specifications.

The European Foundry Association (EFF) provides detailed regional statistics showing European foundries produced approximately 10.7 million tons of ferrous castings in 2021, demonstrating a 17.6% year-over-year increase. The European foundry sector generates €41 billion in casting production value and directly employs 260,000 people across approximately 6,000 metal casting facilities. The industry structure reveals that 70% of foundry enterprises are small businesses with fewer than 50 employees, indicating a diverse manufacturing ecosystem capable of serving both large-scale municipal projects and specialized applications. The composition of foundry output reflects advanced technical requirements, with 48.5% consisting of cast iron with lamellar graphite, 43.9% ductile cast iron, and 7.5% steel castings, demonstrating the technical sophistication required for modern municipal infrastructure applications.

Indian Overview & Outlook

Indias municipal castings industry operates within the countrys position as the second-largest global casting producer, as confirmed by the American Foundry Society. This ranking reflects Indias substantial manufacturing capacity, growing technological capabilities, and increasing integration with global supply chains. The sector benefits significantly from comprehensive government initiatives including the Smart Cities Mission, urban infrastructure development programs, and municipal modernization projects that create sustained demand for high-quality casting components.

The Ministry of Statistics and Programme Implementation through the Annual Survey of Industries (ASI) 2022-23 provides comprehensive data demonstrating robust sectoral performance. The foundry-related Basic Metals sector ranks among the top industries by Gross Value Added, contributing 11.57% to overall manufacturing output. The manufacturing Gross Value Added grew by 7.3% in current prices during 2022-23, indicating strong momentum in casting-related manufacturing activities. Indias manufacturing sector comprises 253,334 total factories with Fixed Capital per Factory reaching Rs. 1,996 lakhs in 2022-23, demonstrating substantial investment in manufacturing infrastructure supporting foundry operations.

The industry demonstrates strong productivity metrics with Output per Worker reaching Rs. 99.10 lakh and Net Value Added per Worker at Rs. 12.84 lakh. Geographic distribution shows strategic positioning across major industrial states, with Gujarat contributing 19.64% to overall manufacturing output, Maharashtra at 16.33%, Tamil Nadu at 15.66%, Odisha at 12.62%, and Karnataka at 10.44%. This distribution ensures proximity to both raw material sources and end-user markets while supporting export capabilities. The Indian Bureau of Mines reports exceptional mineral production supporting foundry operations, with iron ore production reaching 289 million metric tons (MMT) in FY 2024-25, breaking previous records with 4.3% growth. Supporting materials including manganese ore production increasing 11.8% to 3.8 MMT and bauxite production rising 2.9% to 24.7 MMT provide comprehensive raw material infrastructure.

Ductile Iron Pipes and Waterworks Global Overview & Outlook

The global ductile iron pipes market operates within the broader context of water infrastructure development and steel industry capacity, representing a critical component of municipal water supply, sewerage systems, and industrial fluid transport applications. The sector benefits from increasing focus on water security, aging infrastructure replacement needs, and expanding urban populations requiring robust water distribution networks. Global infrastructure investment patterns show sustained demand for ductile iron pipes due to their superior durability, pressure resistance, and longevity compared to alternative materials.

The World Steel Association reports global crude steel production totaling 1,884.6 million tonnes in 2024, providing the industrial foundation for ductile iron pipe manufacturing. Major steel-producing countries maintain substantial capacity supporting ductile iron pipe manufacturing, with China leading global production at 1,005.1 million tonnes, followed by India at 149.6 million tonnes, Japan at 84.0 million tonnes, and South Korea at 63.5 million tonnes. This geographic distribution of production capacity ensures regional supply chain stability for water infrastructure projects while supporting competitive manufacturing costs.

Steeldemandanalysisindicates constructionactivitiesaccountfor877milliontonnes ofglobalsteelconsumption,representing the largest end-use sector. Water infrastructure represents a significant component of this construction demand, with ductile iron pipes being preferred for municipal applications due to their exceptional performance characteristics. The OECD Steel Outlook 2025 indicates market dynamics affecting supply chains, with Chinese steel exports reaching a record 118 million tonnes in 2024. However, global steel excess capacity projected at 721 million metric tonnes by 2027 suggests adequate material availability for infrastructure projects. The sector demonstrates technological advancement with increasing focus on sustainable manufacturing practices, as more than half of new steel industry investments target relatively lower-emitting electric-arc furnace (EAF) plants.

Indian Overview & Outlook

Indias ductile iron pipe market demonstrates exceptional growth potential, supported by the countrys position as the worlds second-largest steel producer and substantial government investment in water infrastructure development. The market benefits from comprehensive national programs including the Jal Jeevan Mission, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and various state-level water supply schemes that create sustained demand for high-quality pipe systems meeting international standards.

The Joint Plant Committee under the Ministry of Steel reports Indias crude steel production of 149.6 million tonnes in 2024, providing substantial manufacturing capacity for ductile iron pipe production. Current production data shows crude steel production reaching 24.348 million tonnes in the first quarter of 2024, representing 3.9% growth compared to the previous year. Finished steel production of 23.711 million tonnes with 6.0% growth demonstrates the manufacturing foundation supporting ductile iron pipe production capabilities.

The Indian Bureau of Mines provides comprehensive statistics on mineral production supporting manufacturing operations. Iron ore production reached 26.5 million tonnes in June 2024 alone, with iron ore accounting for 71% of total mineral production value at Rs. 9,732 crores. Limestone production of 36.7 million tonnes provides essential flux materials required for ductile iron production processes. Regional production statistics show Odisha dominating with 47.7% share ( Rs. 6,535 crores), followed by Rajasthan at 13.5% and Chhattisgarh at 12.1%, providing critical raw materials and manufacturing infrastructuresupportingductileironpipeproductionfacilities.ThesectorbenefitsfromIndiascomprehensive manufacturing infrastructure, with quality standards maintained through the Bureau of Indian Standards ensuring consistency and international compatibility for both domestic applications and export markets.

Automotive Castings Global Overview & Outlook

The global automotive casting market represents a cornerstone of the international foundry industry, operating within the context of worldwide vehicle production, technological advancement, and the transition toward electric mobility solutions.

The sector serves both internal combustion engine (ICE) and electric vehicle (EV) applications, with casting components essential for engine blocks, transmission housings, structural components, battery housings, and electric motor casings. The industry demonstrates resilience and adaptability as automotive manufacturers pursue lightweighting initiatives, performance enhancement, and manufacturing cost optimization.

World Steel Association data indicates that major automotive manufacturing countries maintain substantial steel production capacity supporting casting operations. Japan produced 84.0 million tonnes in 2024, South Korea 63.5 million tonnes, Germany 36.8 million tonnes, and Mexico 18.1 million tonnes, providing the industrial foundation for automotive casting operations across established manufacturing regions. Steel demand analysis shows the automotive sector accounts for 134 million tonnes of global steel consumption, representing significant demand for cast components and demonstrating the scale of automotive casting requirements worldwide.

The European Foundry Association reports substantial automotive applications within regional casting production, with Portugal showing 83.5% of cast iron output destined for motor vehicles, Germany at 66.5%, and Turkey at 37.3%. For ductile iron applications serving automotive markets, Portugal leads with 87.0%, Turkey at 45.9%, and Germany at 44.6% of production. Non-ferrous metal production demonstrates technological advancement, with light metals representing 86.6% share supporting automotive lightweighting initiatives, while copper alloys maintain 5.6% share and zinc alloys represent 6.3% serving specialized automotive applications. The industry shows recovery resilience, with European foundries adapting production capabilities to meet evolving automotive requirements despite pandemic-related challenges that initially caused production declines of 19.8% in 2020.

Indian Overview & Outlook

Indias automotive casting sector operates within the countrys substantial steel production capacity and growing vehicle manufacturing base, benefiting from government initiatives including Production Linked Incentive (PLI) schemes, Make in India programs, and increasing integration with global automotive supply chains. The sector serves both domestic vehicle production exceeding 28 million units annually and expanding export opportunities to international automotive manufacturers seeking competitive, high-quality components.

The Ministry of Statistics and Programme Implementation data through the Annual Survey of Industries demonstrates manufacturing sector performance supporting automotive casting operations. The Index of Industrial Production (IIP) shows manufacturing sector performance with 77.63% weight in overall industrial production, with 407 item-groups monitored including foundry and casting components serving automotive applications. Indias manufacturing infrastructure demonstrates substantial scale with Output per Worker at Rs. 99.10 lakh and Net Value Added per Worker at Rs. 12.84 lakh, supporting competitive automotive casting production for both domestic and export markets.

Geographic distribution of manufacturing capacity positions automotive casting production strategically, with Gujarat contributing 19.64%, Maharashtra 16.33%, and Tamil Nadu 15.66% to overall manufacturing output. These states represent major automotive manufacturing hubs, providing integrated supply chains for casting operations and proximity to vehicle assembly facilities. Indias crude steel production of 149.6 million tonnes positions the country as the worlds second-largest producer, ensuring abundant raw materials for automotive casting applications. The finished steel production growth demonstrates manufacturing capability supporting automotive component requirements, while the countrys position as the second-largest global casting producer according to the American Foundry Society enhances competitiveness in international automotive markets.

Agricultural Castings Global & Indian Overview

The global agricultural casting market operates within the broader context of worldwide mechanization trends, increasing agricultural productivity requirements, and expanding demand for durable farm equipment capable of operating in demanding field conditions. The sector serves agricultural machinery manufacturers producing tractors, harvesters, irrigation equipment, and specialized implements requiring cast components for structural integrity, wear resistance, and operational reliability. Global mechanization initiatives drive consistent demand for casting components including gears, hydraulic system parts, structural frameworks, and specialized implements.

Steel demand analysis indicates mechanical engineering accounts for 290 million tonnes of global steel consumption, representing a significant portion encompassing agricultural machinery applications. The sector benefits from developing economies showing particular growth in agricultural mechanization, supported by government programs promoting farm productivity and efficiency improvements. Engineering steels represent 48 million tonnes of global consumption, often utilized in agricultural applications requiring specialized mechanical properties for durability and performance under varying load conditions.

The European Foundry Association data indicates mechanical engineering applications represent significant portions of regional casting production, with Finland showing 28.9%, Italy 53.6%, and Turkey 34.5% of iron casting output serving mechanical engineering applications including agricultural machinery. For ductile iron applications, Finland leads with 90.5% for mechanical engineering applications, demonstrating the importance of high-strength materials in agricultural equipment. The sector incorporates advanced technologies requiring sophisticated casting components, as modern agricultural equipment integrates GPS guidance systems, automated controls, precision application systems, and sensor-based monitoring, all requiring cast components meeting exacting specifications for reliability and performance in field conditions.

Indian Overview & Outlook

Indias agricultural casting market benefits from the countrys substantial manufacturing base, growing mechanization trends in agriculture, and government support for farm productivity enhancement programs. The sector serves both domestic agricultural machinery manufacturers and export opportunities, supported by Indias competitive manufacturing costs and improving quality standards. Agricultural machinery demand drives casting requirements for tractors, harvesters, irrigation systems, and specialized implements serving Indias diverse farming operations.

The Ministry of Statistics and Programme Implementation data demonstrates robust manufacturing sector performance supporting agricultural machinery production. According to ASI 2022-23 data, Indias manufacturing sector shows strong productivity metrics with Fixed Capital per Factory at Rs. 1,996 lakhs, supporting advanced manufacturing capabilities required for agricultural casting production. This capital investment ensures quality and consistency for both domestic market service and export opportunities in competitive international markets.

The Indian Bureau of Mines reports comprehensive mineral production supporting agricultural casting applications, with iron ore production of 289 million MMT demonstrating 4.3% growth. Manganese ore production increasing 11.8% to 3.8 MMT supports alloy requirements for specialized agricultural components requiring enhanced mechanical properties. Geographic distribution of manufacturing capacity across Gujarat (19.64%), Maharashtra (16.33%), Tamil Nadu (15.66%), Odisha (12.62%), and Karnataka (10.44%) provides diverse manufacturing capabilities serving agricultural machinery manufacturers and aftermarket component suppliers. Indias position as the second-largest global casting producer according to the American Foundry Society demonstrates manufacturing competitiveness positioning Indian agricultural casting manufacturers favorably for both domestic market service and international export opportunities.

Railway, Electricals, Counterweights, Screwpiles Indian Overview & Outlook

The global market for specialized industrial castings encompasses railway infrastructure, electrical equipment, construction counterweights, and foundation systems, operating within the broader industrial machinery and infrastructure development sectors. These specialized applications require high-performance materials and manufacturing processes to meet demanding operational requirements including heavy loads, environmental exposure, and safety-critical performance standards. The sector benefits from continued global investment in infrastructure modernization, railway development, electrical grid expansion, and construction equipment applications.

Steel demand analysis indicates construction activities account for 877 million tonnes of global steel consumption, while mechanical engineering represents 290 million tonnes, encompassing primary end-use applications for specialized casting components. Other transport including rail accounts for 63 million tonnes of global steel demand, demonstrating the scale of railway infrastructure requirements. Oil & gas exploration & transport representing 113 million tonnes includes applications for counterweights and specialized structural components serving energy sector infrastructure.

70 : Annual Report 2024-25

The OECD reports continued global investment in infrastructure development, with construction sector representing the largest single application for steel products. Railway infrastructure modernization, electrical grid expansion, and construction equipment applications create consistent demand for specialized casting components engineered for specific performance requirements. European foundry data shows steel casting production reached 686,000 tons, with specialized applications requiring advanced metallurgy and quality control systems. Carbon steel represents 1,690 million tonnes of global steel consumption, while engineering steels account for 48 million tonnes, serving demanding applications requiring specialized mechanical properties for safety-critical and high-performance applications.

Indian Overview & Outlook

Indias specialized casting market operates within comprehensive manufacturing infrastructure and substantial government investment in infrastructure development across railway, electrical, and construction sectors. The sector benefits from Indias position as a major infrastructure development economy, with ongoing projects in railway modernization, electrical grid expansion, urban development, and industrial construction creating sustained demand for specialized casting components. The Ministry of Statistics and Programme Implementation demonstrates substantial industrial capacity supporting specialized casting applications. Government statistical data indicates significant investment in infrastructure development across railway, electrical, and construction sectors, with the Ministry of Heavy Industries reporting substantial engagement with Basic Industry sectors including Steel, Mining, Power, and related infrastructure. This government involvement supports consistent demand for specialized casting components serving critical infrastructure applications.

Indias manufacturing infrastructure demonstrates capability for specialized applications with Output per Worker at Rs. 99.10 lakh indicating high productivity levels suitable for demanding technical requirements. The geographic distribution across major industrial states provides diverse manufacturing capabilities serving specialized market segments requiring proximity to end-use applications. The Indian Bureau of Mines reports comprehensive mineral production supporting specialized casting applications, with iron ore production of 289 million MMT providing foundation for high-quality specialized castings. Additional minerals including manganese, bauxite, and limestone support alloy requirements for specialized applications requiring enhanced mechanical properties and performance characteristics. Indias position as the worlds second-largest casting producer according to international recognition supports export market development and specialized casting capabilities enabling service to international markets requiring high-quality components meeting stringent international standards and specifications.

Sources: https://thewfo.com/Content/downloads/44.pdf https://www.eff-eu.org/wp-content/uploads/2019/01/CAEF-Co7_2020-complete.pdf https://worldsteel.org/wp-content/uploads/World-Steel-in-Figures-2024.pdf https://worldsteel.org https://worldsteel.org/data/annual-production-steel-data/ https://www.pib.gov.in/PressReleasePage.aspx?PRID=2060292 https://www.pib.gov.in/PressReleasePage.aspx?PRID=2126960 https://ibm.gov.in/writereaddata/files/172656975166e95d17d65f4MSMP_June_2024.pdf https://jpcindiansteel.nic.in/writereaddata/files/Trend%20Report%20June%202024.pdf https://www.oecd.org/en/publications/2025/05/oecd-steel-outlook-2025_bf2b6109.html https://one.oecd.org/document/DSTI/SC(2024)3/FINAL/en/pdf https://www.steelonthenet.com/consumption.html https://heavyindustries.gov.in/sites/default/files/2023-09/annualfireport_2021-22_english637823518398879406.pdf https://www.afsinc.org/industry-statistics

BUSINESS AND FINANCIAL OVERVIEW

Super Iron Foundry Limited stands as a globally recognized manufacturer and exporter in the iron and steel foundry sector, with particular expertise in casting and manufacturing of access covers and gully grates used in roadway construction and infrastructure development. Since its incorporation in 1988 and commercial operations commencing in 2013, the Company has strategically positioned itself as a specialized provider of municipal castings, ductile iron pipe fittings, automotive castings, agricultural castings, railway castings and cast-iron counterweights across international markets, with exports accounting for approximately 95% of its revenues spanning over 15 countries across Europe, Middle East, and North America.

The Companys comprehensive product portfolio encompasses over 500+ customized casting solutions, demonstrating its capability as an emerging supplier of diverse municipal and industrial casting products. Super Iron Foundrys growing international footprint reflects its capabilities in delivering quality, EN124 standard-compliant solutions to clients across

Europe (primarily Italy accounting for ~70% of revenues through Mario Cirino Pomicino SPA), Middle East including UAE, Qatar, Oman, and Saudi Arabia, and other international markets including USA, Germany, France, Switzerland, UK, Romania, Greece, Croatia and Belgium.

The Company operates through an integrated manufacturing model with end-to-end capabilities in designing, casting, machining, and finishing of iron and steel foundry products. Its operations are supported by a strategically located 20-acre manufacturing facility in Durgapur, West Bengal - Indias steel hub in the eastern region - with an annual production capacity of 72,000 MT. The facility is equipped with modern robotic equipment, automated high-pressure moulding lines, robotic arms for painting and grinding, and advanced quality control systems, ensuring compliance with international standards including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications.

Super Iron Foundry continues to align its business priorities with global infrastructure development trends, emphasizing technological advancement, operational excellence, and customer-centric solutions. The Company has been accorded Two Star Export House status by the Directorate General of Foreign Trade in 2023, reflecting its commitment to export excellence. Its long-term strategic ambition is to strengthen its position among leading global casting solution providers, focusing on market expansion, product diversification, and value creation for all stakeholders through sustainable manufacturing practices.

The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended). These financial statements present a true and fair view of Super Iron Foundrys performance, reflecting the companys commitment to transparency, compliance, and sustainable financial management while positioning itself for future growth.

Brief financial performance for F.Y. 2024-25:

Standalone Financial Summary: (Amount in Rs. Crore)

Particulars

Year ended Year ended
March 31, 2025 March 31, 2024
Revenue from Operations 158.70 154.83
EBDITA 28.17 18.34
Interest and Financial Charges 8.40 7.87
Tax expenses 3.50 0.78
Net Profit 10.75 3.94

Key Financial Ratios on Standalone basis

Ratios

2024-25 2023-24 % Change * Reason (if more than 25% change)
Debtors Turnover (Times) 2.69 2.15 25.12% Due to decrease in average trade receivables
Inventory Turnover (Times) 2.35 3.51 (33.05%) Due to increase in average inventory w.r.t.
revenue from operations
Interest Coverage Ratio (Times) 3.35 2.17 (54.80%) Due to increase in EBIDTA
Current Ratio 1.55 1.21 (28.10%) Due to increase in current assets primarily
due to current investments.
Debt Equity Ratio (On Total 0.56 2.09 Due to Pre-repayment of debt and increase
Debt) in equity due to increase in profits
Net Profit Margin (%) 6.45% 2.51% (156.90)% Due to increase in profits
Return on Net Worth (%) 6% 7% 10.53%

* -ve denotes increase and +ve figure denotes decrease

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Super Iron Foundry Limited has established a comprehensive internal control architecture that ensures manufacturing excellence, protects company assets, maintains strict adherence to regulatory requirements, and guarantees the accuracy of financial reporting. Our control systems undergo continuous evaluation, enhancement, and modernization to align with the expanding scope and sophistication of our casting operations.

The Internal Audit division functions autonomously and conducts systematic evaluations of internal control effectiveness across all operational areas and manufacturing processes. These assessment reports undergo regular scrutiny by the Audit Committee, which oversees the execution of audit recommendations and remedial measures. The Committee maintains ongoing dialogue with both internal and statutory auditors to assess and strengthen the robustness of our control environment.

In accordance with the assessment requirements under Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee has validated that the Companys Internal Financial Controls were robust and operating effectively as of March 31, 2025.

Additionally, the Companys Statutory Auditors, Baid Agarwal Singhi & Co., Chartered Accountants, have conducted a comprehensive audit of the financial statements and rendered their professional opinion on the sufficiency and operational effectiveness of internal financial controls over financial reporting in compliance with Section 143 of the Companies Act, 2013.

OPPORTUNITIES AND THREATS Opportunities:

- Infrastructure Growth: Government initiatives such as Smart Cities Mission, AMRUT, Jal Jeevan Mission, and large-scale urban development projects are expected to drive sustained demand for municipal castings and ductile iron fittings.

- Export Potential: With over 95% of revenues derived from exports, the Company is well-positioned to capitalise on global demand for quality castings, particularly in regions with ageing utility infrastructure and stricter quality norms.

- Product Diversification: Expansion into value-added engineered castings for automotive, agricultural, and railway applications opens access to diversified revenue streams and reduces dependency on a single product category.

- Technological Upgradation: Adoption of advanced moulding, machining, and finishing technologies offers scope for higher precision, reduced wastage, and premium pricing.

Threats:

- Market Volatility: The cyclical nature of the foundry industry and its dependence on macroeconomic conditions can lead to fluctuations in demand.

- Global Trade Risks: Changes in import regulations, anti-dumping duties, and geopolitical tensions could impact export volumes and margins.

- Raw Material Dependence: Limited flexibility in raw material substitution makes the Company vulnerable to price spikes in pig iron, coke, and alloys.

- Environmental Compliance Pressure: Evolving global sustainability standards and stricter emission regulations could require continuous capital investment and operational adjustments.

RISK AND CONCERN

Super Iron Foundry Limited operates within the highly competitive and cyclical iron and steel casting industry, which is closely linked to infrastructure development, municipal utilities, transportation, and industrial capital goods. A significant portion of the Companys revenues comes from municipal castings, counterweights, and other infrastructure-related products, making demand sensitive to public spending patterns, urban development projects, and economic growth cycles. The business is exposed to raw material price volatility, particularly in pig iron, scrap, and coke, which can directly impact cost structures and margins. Although the Company works with a diversified supplier base, any disruption in sourcing due to market shortages or logistic bottlenecks could affect production schedules.

Export sales expose the Company to currency fluctuations and changes in overseas market conditions. Geopolitical uncertainties, trade policy shifts, and variations in import duties in key markets can influence competitiveness. Additionally, the foundry sector is energy-intensive, making operations vulnerable to fluctuations in power tariffs and fuel costs. Regulatory risks include compliance with increasingly stringent environmental norms related to air emissions, solid waste management, and workplace safety. Non-compliance could lead to penalties, reputational damage, or operational restrictions. The Company also faces competitive pressures from both domestic and international players with larger capacities and integrated operations. Maintaining quality consistency, delivery timelines, and cost efficiency are critical to sustaining market share in this fragmented yet demanding sector.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

At Super Iron Foundry Limited, employees form the backbone of operational excellence and product reliability. The Companys HR approach focuses on skill development, workplace safety, and long-term engagement. Regular training programs are conducted for workers, supervisors, and technical staff to improve manufacturing skills, quality awareness, and compliance with environmental and safety standards. The organisation promotes a culture of discipline, responsibility, and teamwork, ensuring that employees are aligned with production targets and customer expectations.

Industrial relations remained cordial during the year, supported by transparent communication and a collaborative approach with workers representatives. Incentive schemes and recognition programs are used to encourage productivity and reward consistent performance. As on 31st March 2025, the Company employed 160, comprising permanent, contractual, and supervisory staff. With a focus on stability and retention, the Company continues to invest in upskilling initiatives to meet the evolving demands of its diverse product range and customer segments.

INFORMATION & TECHNOLOGY

Super Iron Foundry Limited leverages technology to improve manufacturing precision, reduce rejection rates, and optimise resource utilisation. The Company has adopted pattern-making automation, CNC machining centres, and advanced moulding lines to enhance dimensional accuracy and reduce manual intervention in critical processes. Quality control is reinforced through spectrometers, universal testing machines, and non-destructive testing facilities that ensure products meet stringent domestic and international standards.

ERP systems are deployed to integrate procurement, production, inventory, and dispatch functions, enabling better planning and real-time tracking of orders. This digital backbone improves transparency, reduces lead times, and supports on-time delivery performance. The Company also uses CAD/CAM systems in design and prototyping, enabling quicker turnaround for customised products, particularly in export orders. Continuous investment in process automation and monitoring systems ensures efficiency in energy and raw material use, aligning operations with sustainability objectives and compliance requirements.

CAUTIONARY STATEMENT

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Forward–looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.

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