Shivalik Bimetal Controls Limited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Shivalik Bimetal Controls Ltd reported FY25 revenue of ₹437.2 Cr, down 2.7% YoY. EBITDA margin remained resilient at 22.3%, slightly down 47 bps. Profit after tax declined 10.6% to ₹72.4 Cr, with PAT margin at 16.6%. Q4 standalone EBITDA jumped 24.9% YoY to ₹26.5 Cr, expanding margins by 422 bps to 23.2%. Gross profit stayed stable despite cost pressures. The company ended FY25 with ₹68 Cr net cash and ROCE above 24%. Export revenue comprised 56%, maintaining a 52:48 export-to-domestic split across 38 countries. Working capital days rose marginally to 217.

2. Strategic Initiatives & Growth Drivers:

Shivalik is advancing forward into complex sub-assemblies, shifting from precision metal strips to higher margin PCBA assemblies. Planned capex of ₹15-20 Cr over FY26-27 aims to enhance productivity and capacity on the back of ₹100 Cr invested since FY21. Growth is driven by demand in EV battery management, smart meters, grid infrastructure, and energy storage. Proprietary dual metallurgical technologies—Electron Beam Welding and Diffusion Bonding—aid cost and quality leadership with accelerated innovation.

3. Business Developments:

The company set up ‘Shivalik Bimetals Europe SRL’ in Italy to strengthen its geographic presence. It completed vertical integration by acquiring full ownership of Checon Corporation, expanding control over its electrical contacts business. Addition of new product verticals like Cathode Ray Tube parts and advanced shunt resistors targeting EV applications supports diversification without heavy greenfield capex.

4. Market Position & Competitive Advantage:

Shivalik commands double-digit market shares in shunt resistors and bimetals, serving 300+ OEMs/Tier-1s globally. Unique Electron Beam Welding capability, 77 proprietary bimetal grades, and in-house machine-building sharply reduce costs and lead times. Long-standing customer ties and specialization create high barriers to entry. Zero debt and hydro-powered operations enhance ESG credentials and operational resilience.

5. Investor Implications:

Strong cash flows, niche technological edge, and strategic shift to higher value assemblies suggest positive growth potential amid electrification tailwinds. Execution risk around forward integration and international expansion warrants monitoring, offset by disciplined capital deployment and stable margins. Financial strength is supported by a net cash position amid mixed demand signals in some sectors.