Shri Hare-Krish.

Q3 FY25 Earnings Call Analysis

Ferrous Metals

Full Stock Analysis
fundraise: Yescapex: Yesrevenue: Category 1margin: Category 1orderbook: No information
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margin

Future growth expectations in earnings/operating earnings/profits/EPS?

- FY27 revenue is expected to be INR160 crores, a 60-70% increase compared to FY25. - Revenue growth is driven by new segments: high alloy casting (tooth points, grinding media, steel chain links) starting June 2026, induction furnace, and rolling mill starting March-April 2026. - Casting segment expected to generate INR60-70 crores in its first year. - Full utilization of the high alloy casting capacity (18,000 MT) anticipated by FY28-29. - Operating margins projected around 13-14% aided by captive green power generation reducing power costs. - EBITDA and profit margins likely to improve with enhanced turnover and cost efficiencies. - Management expects turnover to triple over 3 years compared to FY25, signaling strong long-term growth in earnings and profitability. - EPS growth is implied with increased revenues and stable to improving margins due to operational optimization and new product introduction.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

The transcript provided does not explicitly mention specific details about the current or expected order book or pending orders for Shri Hare-Krishna Sponge Iron Limited. However, some relevant points can be summarized: - The company is launching a unique product (high alloy casting, including tooth points) expected to substitute imports, indicating ongoing customer engagement. - They have already negotiated with customers for new products and plan to showcase them at the upcoming IMTEX/Excon event in Bangalore (December 9-13, 2025), suggesting anticipated orders. - The expected revenue from the new casting segment in the first year (FY26-27) is INR 60-70 crores. - The high alloy casting capacity is planned at 18,000 metric tons per year, with full utilization expected by FY28-29. - The company anticipates a significant increase in turnover, tripling by FY27-28, indicating strong market demand and order inflows. No direct figures or order book size was disclosed.
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fundraise

Any current/future new fundraising through debt or equity?

- The company plans its capex funding from a combination of internal sources and bank borrowings. - Maximum utilization of internal resources such as reserves and surplus is intended. - If additional funds are required, the company may take some bank debt. - Interest cost is expected to not rise significantly as internal resources will be primarily used. - There was no explicit mention of new equity fundraising or another IPO during the call. - The existing IPO proceeds seem to be utilized for power plant installation and expansions. - Overall, debt may be taken as needed, but no major fundraising plans through equity or additional IPO were disclosed.
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capex

Any current/future capex/capital investment/strategic investment?

- Shri Hare-Krishna Sponge Iron Limited is undertaking significant capex investments: - Commissioning a captive power plant starting January 2026, using waste hot gases and rice waste to generate green power. - Starting an induction furnace and rolling mill around March-April 2026. - Launching a high alloy casting division (tooth points, grinding media balls, specialized chain links) around May-June 2026. - The high alloy casting capacity is planned at approximately 18,000 metric tons per year. - Capex funding will primarily come from internal resources combined with bank debt; IPO proceeds are not explicitly stated as the main source. - Expected financial impact: Revenue anticipated to grow by 60-70% in FY27 versus FY25, reaching around INR160 crores. - New product launches aim to replace imports and focus on value-added segments aligned with "Make in India."
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revenue

Future growth expectations in sales/revenue/volumes?

- FY26 revenues expected to grow 20-25% over FY25. - FY27 revenues projected at INR 160 crores, a 60-70% increase compared to FY25. - Post FY27, sales expected to triple relative to FY25 within three years. - Casting division to start production by May/June 2026, targeting INR 60-70 crores revenue in the first year. - New high alloy casting products (tooth points, grinding media, chain links) to contribute significantly. - Sponge iron capacity currently at 36,050 metric tons with ~84% utilization. - High alloy casting capacity planned around 18,000 metric tons/year, with full utilization anticipated by FY28-29. - Expansion backed by internal accruals and some bank borrowing, with limited interest cost increase expected.