WEBSITE BSE:532731 NSE: ROHIT FERRO Inc. Year: 2000 Industry: Steel & Iron Products My Bucket: Add Stock
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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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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
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(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 |
| #(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 |
| # | 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% |
| #(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 |
| #(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 |
| # | 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 |
| # | 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 |
| # | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 | 8.19 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.18 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 | 11.38 |
* The pros and cons are machine generated.
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