Sarthak Metals Limited — PPTs, 10-02-2025: Investor Presentation

**Financial Highlights:** For Q3 FY25, Sarthak Metals reported revenues of ₹44 crore, a drop of 42% year-on-year and 4% quarter-on-quarter, mainly due to a strategic exit from the less profitable aluminium flipping coil business. EBITDA was ₹2.06 crore, showcasing a 6% increase QoQ, while the EBITDA margin improved to 4.67%. PAT surged 48% to ₹1.22 crore, aided by cost-saving measures, despite a 29% decline year-on-year. The company maintains a debt-free position with ₹27 crore in cash.

**Strategic Initiatives and Growth Drivers:** The cored wire segment achieved ₹31 crore in revenue, up 11% YoY, supported by a 15% increase in volumes, while aluminium flipping coil revenues significantly declined to ₹9 crore. The company has shifted focus to its welding consumables division, generating ₹1.6 crore in Q3 FY25, and is expanding its distribution network, targeting annual sales of ₹25 crore within two years.

**Business Developments:** Sarthak Metals is diversifying into biotechnology, partnering with CSIR for enzyme production, specifically targeting industrial bio-enzymes that enhance bioethanol and biogas production. They aim to leverage opportunities in health and nutrition supplements, pinpointing a promising export avenue.

**Market Position and Competitive Advantage:** Despite a challenging steel market influenced by high imports from China and lower domestic demand, the company has maintained a technological edge that supports market share expansion.

**Investor Implications:** With ongoing diversification efforts and cost control strategies, Sarthak Metals is positioning itself for potential growth amidst market cyclicality, suggesting a positive outlook for investors focusing on long-term value.