Sarthak Metals Limited — PPTs, 15-11-2024: Investor Presentation

**Financial Highlights:** In Q2 FY25, Sarthak Metals reported a revenue of ₹45.72 cr, a 41% decline year-over-year, primarily due to reduced volumes in aluminium flipping coils amid rising costs and competition. EBITDA exhibited a steep drop, reaching ₹1.92 cr (4.21% margin), down from ₹7.20 cr (9.30% margin) YoY. The net profit stood at ₹0.83 cr, marking an 85% decrease compared to last year.

**Strategic Initiatives and Growth Drivers:** The company is strategically scaling down operations in its aluminium business to maintain profitability, while pushing forward with growth in the cored wire and welding segments. The new welding division is positioned to tap into the ₹3,000 cr welding consumable market, while biotechnology initiatives in Nagpur are showing promise in greener technologies.

**Business Developments:** Sarthak sold 261 tons of flux cored wire in the first half of FY25, amounting to ₹3.24 cr in revenue. Plans for expanding production capacity to 2,500-3,000 tons annually are underway, focusing on diversifying product lines.

**Market Position and Competitive Advantage:** Despite challenging market conditions, Sarthak's established technology and experience provide an edge in the competitive landscape. The anticipated 8% growth in Indian steel demand for 2025 aligns with the company’s strategy to capture greater market share.

**Investor Implications:** The results underscore caution due to current operational headwinds, but long-term diversification strategies and market recovery in steel consumption hint at potential growth for investors to monitor closely.