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Rohit Ferro-Tech Overview

1. Business Overview

Rohit Ferro-Tech Ltd. is an Indian company operating in the Steel & Iron Products sector. Given the name "Ferro-Tech," its core business is highly likely the manufacturing of ferroalloys. Ferroalloys are crucial intermediate products used in the steelmaking process to impart specific properties to steel, such as strength, corrosion resistance, and ductility. The company primarily operates as a business-to-business (B2B) supplier, selling these ferroalloys (e.g., ferrochrome, ferromanganese, ferrosilicon) to steel manufacturers. Its revenue is generated through the sale of these manufactured products.

2. Key Segments / Revenue Mix

Based solely on the provided sector and industry, the primary revenue segment for Rohit Ferro-Tech Ltd. is the production and sale of ferroalloys. Without specific financial disclosures, further breakdown into different types of ferroalloys or other potential steel/iron products, and their respective contributions, cannot be determined.

3. Industry & Positioning

The company operates in the Indian Steel & Iron Products industry, specifically the ferroalloys segment. This is a capital-intensive and cyclical industry highly dependent on the demand from the steel sector, which in turn is driven by infrastructure development, manufacturing, and construction. The industry is characterized by significant raw material costs (ores, power) and intense competition. Positioning of Rohit Ferro-Tech Ltd. within this landscape is not determinable without market share, capacity, or specific product focus data. It operates within a domestic market that has both large integrated steel players (who might have captive ferroalloy units) and independent ferroalloy producers. Its standing would depend on factors like cost efficiency, product quality, and customer relationships.

4. Competitive Advantage (Moat)

Ferroalloy production is largely a commodity business, making durable competitive advantages (moats) difficult to establish. Potential sources of advantage, if present, could include:

Cost Leadership: Achieved through access to captive raw materials (e.g., chrome ore, manganese ore), captive power generation, or highly efficient production processes at scale.

Operational Efficiency: Superior process technology and scale leading to lower per-unit costs.

Customer Relationships: Long-term supply contracts with major steel producers, ensuring consistent demand.

Geographic Proximity: Location near key raw material sources or major steel hubs, reducing logistics costs.

However, without specific operational details, a strong and sustained moat is difficult to ascertain for a commodity producer.

5. Growth Drivers

Key factors that could drive growth for Rohit Ferro-Tech Ltd. over the next 3-5 years include:

Domestic Steel Demand: Continued growth in India's infrastructure, construction, automotive, and manufacturing sectors will drive demand for steel, and consequently, ferroalloys.

Capacity Expansion of Steel Industry: New steel plant commissioning or expansion by existing players will increase the requirement for ferroalloys.

Specialty Steel Production: Growing demand for higher-grade and specialty steels, which often require specific ferroalloys for alloying purposes.

Cost Efficiency Initiatives: Successful implementation of measures to reduce input costs (power, raw materials) or improve operational efficiency could boost profitability and enable competitive pricing.

6. Risks

Cyclicality: The company's performance is highly sensitive to the cyclical nature of the global and domestic steel industry and overall economic conditions.

Raw Material Price Volatility: Fluctuations in the prices of key raw materials (e.g., chrome ore, manganese ore, coal/coke, power) directly impact profitability.

Intense Competition: The presence of both domestic and international players can lead to pricing pressures and margin erosion.

Power Availability & Cost: Ferroalloy production is energy-intensive, making reliable and cost-effective power supply critical.

Environmental Regulations: Stringent environmental norms and compliance costs can impact operations and capital expenditure.

Financial Leverage: Capital-intensive industries often carry significant debt, making them vulnerable to interest rate changes and economic downturns.

7. Management & Ownership

In India, "Promoters" typically refer to the founding family or group of individuals who control the company and hold a significant stake. This suggests Rohit Ferro-Tech Ltd. is likely a promoter-led or family-controlled business. Information on specific management quality, executive experience, or detailed ownership structure beyond the promoter group is not available from the provided details.

8. Outlook

The outlook for Rohit Ferro-Tech Ltd. is balanced by both the potential tailwinds of India's economic growth and the inherent challenges of a commodity-based industry. The country's strong focus on infrastructure development and growth in manufacturing sectors bodes well for sustained demand for steel and, by extension, ferroalloys. This provides a fundamental demand floor. However, the company operates in a highly cyclical and competitive environment where profitability is heavily influenced by volatile raw material prices, power costs, and global steel market dynamics. Effective cost management, operational efficiency, and potentially securing long-term supply contracts will be crucial for navigating these fluctuations and ensuring consistent performance.

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Rohit Ferro-Tech Key Financials

Market Cap ₹357 Cr.

Stock P/E -5.1

P/B -0.2

Current Price ₹28.6

Book Value ₹ -185.4

Face Value 10

52W High ₹0

Dividend Yield 0%

52W Low ₹ 0

Rohit Ferro-Tech Share Price

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Volume
Price

Rohit Ferro-Tech Quarterly Price

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Rohit Ferro-Tech Peer Comparison

Rohit Ferro-Tech Quarterly Results

#(Fig in Cr.) Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021
Net Sales 185 188 149 49 162 188 236 170 195 190
Other Income 0 0 0 0 0 0 1 0 0 0
Total Income 186 188 149 49 162 188 237 170 195 190
Total Expenditure 184 202 203 61 179 204 237 193 201 197
Operating Profit 2 -14 -54 -12 -17 -15 -0 -23 -6 -7
Interest 4 4 19 0 0 1 1 1 1 1
Depreciation 8 8 8 6 6 6 6 6 6 6
Exceptional Income / Expenses 0 0 -533 0 0 0 0 0 0 -8
Profit Before Tax -10 -27 -614 -18 -22 -22 -7 -30 -13 -21
Provision for Tax 0 -9 2 0 0 0 0 0 0 0
Profit After Tax -10 -18 -616 -18 -22 -22 -7 -30 -13 -21
Adjustments 0 0 0 0 -0 -0 0 -0 0 0
Profit After Adjustments -10 -18 -616 -18 -22 -22 -7 -30 -13 -21
Adjusted Earnings Per Share -0.9 -1.6 -54.2 -1.6 -2 -1.9 -0.6 -2.6 -1.1 -1.9

Rohit Ferro-Tech Profit & Loss

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
Net Sales 1167 1706 2271 2593 1951 1486 660 713 893 738 634 791
Other Income 13 8 13 10 11 9 6 4 3 1 2 1
Total Income 1180 1713 2284 2603 1962 1495 666 717 896 740 636 792
Total Expenditure 1033 1523 2038 2669 2093 1721 988 1052 1009 828 681 828
Operating Profit 146 190 246 -66 -131 -226 -321 -335 -113 -89 -45 -36
Interest 67 109 147 169 200 234 -16 53 50 32 2 4
Depreciation 13 22 30 30 27 31 35 34 34 33 23 24
Exceptional Income / Expenses 0 0 -27 0 0 0 0 -35 0 -533 0 -8
Profit Before Tax 66 60 43 -265 -358 -491 -340 -458 -197 -686 -69 -71
Provision for Tax 22 20 14 -36 0 0 0 0 0 -6 0 0
Profit After Tax 44 40 29 -228 -358 -491 -340 -458 -197 -679 -69 -71
Adjustments 0 0 0 0 -2 3 0 0 4 0 0 0
Profit After Adjustments 44 40 29 -228 -360 -488 -340 -457 -192 -679 -69 -71
Adjusted Earnings Per Share 8 4.9 2.6 -20.1 -31.6 -42.9 -29.9 -40.2 -16.9 -59.7 -6.1 -6.2

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -14% -4% -16% -6%
Operating Profit CAGR 0% 0% 0% NAN%
PAT CAGR 0% 0% 0% NAN%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -5% 124% 64% 21%
ROE Average 0% 0% 0% -9%
ROCE Average -11% -29% -25% -10%

Rohit Ferro-Tech Balance Sheet

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Shareholder's Funds 388 579 812 589 228 -253 -589 -1048 -1269 -1978 -2045
Minority's Interest 0 0 2 1 3 -5 -5 -5 -9 0 0
Borrowings 319 461 619 1316 1416 1331 1119 971 863 74 74
Other Non-Current Liabilities 26 48 99 26 13 3 2 1 1 1 1
Total Current Liabilities 678 1025 1331 1094 1453 1966 2100 2107 2250 3095 3106
Total Liabilities 1411 2114 2862 3026 3113 3043 2627 2026 1836 1192 1136
Fixed Assets 323 587 597 576 547 778 731 662 628 453 430
Other Non-Current Assets 346 268 597 759 801 564 569 526 524 484 484
Total Current Assets 732 1245 1653 1673 1741 1676 1302 838 685 255 222
Total Assets 1411 2114 2862 3026 3113 3043 2627 2026 1836 1192 1136

Rohit Ferro-Tech Cash Flow

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Opening Cash & Cash Equivalents 8 11 25 4 12 6 8 9 10 1 2
Cash Flow from Operating Activities -46 -171 18 -275 -141 18 388 173 0 -4 -22
Cash Flow from Investing Activities -231 -230 -336 -108 -22 -40 13 86 2 45 1
Cash Flow from Financing Activities 280 414 297 391 152 24 -400 -257 -11 -41 20
Net Cash Inflow / Outflow 3 14 -21 8 -11 1 1 2 -9 0 -1
Closing Cash & Cash Equivalent 11 25 4 12 2 8 9 10 1 2 0

Rohit Ferro-Tech Ratios

# Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Earnings Per Share (Rs) 7.97 4.93 2.58 -20.06 -31.64 -42.88 -29.9 -40.21 -16.9 -59.72 -6.1
CEPS(Rs) 10.38 7.63 5.16 -17.44 -29.11 -40.45 -26.87 -37.22 -14.34 -56.81 -4.06
DPS(Rs) 0.5 0.5 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 68.42 70.37 70.06 50.15 17.93 -24.4 -53.88 -92.12 -111.53 -173.86 -179.76
Core EBITDA Margin(%) 11.07 10.23 9.8 -2.82 -6.92 -15.19 -45.23 -46.3 -13.05 -12.18 -7.37
EBIT Margin(%) 11.04 9.44 7.99 -3.54 -7.7 -16.59 -49.19 -55.3 -16.42 -88.6 -10.67
Pre Tax Margin(%) 5.45 3.34 1.81 -9.81 -17.42 -31.73 -47.01 -62.58 -22.04 -92.87 -10.94
PAT Margin (%) 3.65 2.22 1.23 -8.46 -17.42 -31.73 -47.01 -62.58 -22.04 -92.03 -10.94
Cash Profit Margin (%) 4.76 3.44 2.47 -7.35 -16.1 -29.75 -42.21 -57.9 -18.28 -87.54 -7.29
ROA(%) 3.72 2.25 1.17 -7.76 -11.67 -15.95 -12.01 -19.67 -10.19 -44.88 -5.96
ROE(%) 14.03 8.4 4.28 -33.41 -92.51 0 0 0 0 0 0
ROCE(%) 14.25 11.92 9.83 -4.08 -6.31 -10.46 -16.24 -22.74 -9.91 -65.02 -11.09
Receivable days 17.78 26.28 45.94 59.92 96.9 160.06 345.76 283.21 190.58 114.3 15.08
Inventory Days 114.73 113.35 118.45 113.59 146.59 179.61 261.64 128.09 48.76 40.2 34.35
Payable days 74.9 78.17 89.08 71.22 97.93 106.16 200.4 162.67 125.65 177.53 239.48
PER(x) 5.49 6.25 7.04 0 0 0 0 0 0 0 0
Price/Book(x) 0.64 0.44 0.26 0.18 0.39 -0.18 -0.1 -0.03 -0.01 -0 -0.02
Dividend Yield(%) 1.14 1.62 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0.81 0.75 0.67 0.78 1.21 1.83 3.99 3.71 2.98 3.54 4.2
EV/Core EBITDA(x) 6.47 6.78 6.19 -30.74 -17.9 -12.02 -8.2 -7.9 -23.54 -29.55 -59.81
Net Sales Growth(%) 41.53 46.2 33.15 14.17 -24.76 -23.81 -55.59 8.08 25.14 -17.3 -14.12
EBIT Growth(%) 32.08 26.42 12.81 -150.47 -65.48 -61.98 -38.78 -13.57 63.75 -346.13 89.66
PAT Growth(%) 35.58 -10.08 -26.33 -883.4 -56.8 -37 30.64 -34.46 57.02 -245.38 89.79
EPS Growth(%) -9.05 -38.08 -47.59 -876.08 -57.73 -35.53 30.27 -34.48 57.98 -253.44 89.79
Debt/Equity(x) 1.98 2 1.72 3.43 11.25 -9.68 -4.22 -2.51 -2.09 -1.32 -1.29
Current Ratio(x) 1.08 1.21 1.24 1.53 1.2 0.85 0.62 0.4 0.3 0.08 0.07
Quick Ratio(x) 0.41 0.58 0.57 0.81 0.6 0.52 0.44 0.33 0.26 0.06 0.05
Interest Cover(x) 1.98 1.55 1.29 -0.57 -0.79 -1.1 22.62 -7.6 -2.93 -20.74 -39.87
Total Debt/Mcap(x) 3.1 4.56 6.62 18.92 29.02 53.79 41.22 95.91 156.13 521.84 79.47

Rohit Ferro-Tech Shareholding Pattern

# Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
Promoter 72 72 72 72 72 72 72 72 72 72
FII 0 0 0 0 0 0 0 0 0 0.01
DII 0 0 0 0 0 0 0 0 0 0
Public 28 28 28 28 28 28 28 28 28 27.99
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Rohit Ferro-Tech News

Rohit Ferro-Tech Pros & Cons

Pros

  • Stock is trading at -0.2 times its book value
  • Company is almost debt free.

Cons

  • Company has a low return on equity of 0% over the last 3 years.
  • Debtor days have increased from 177.53 to 239.48days.
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