Cosmic CRF Ltd — Updates, 02-06-2025: Company Update

Cosmic CRF has announced a board meeting on June 5 to consider the financial results for the quarter and half-year. The company reported consolidated revenue of INR402 Cr for FY25, up 58.4% YoY, driven by a 127% increase in sales volume to about 56,000 metric tons. PAT rose 141.8% to nearly INR31 Cr. The lower-than-expected revenue vs guidance was due to a shift from high-priced stainless steel to mild steel products, reflecting current market prices and raw material mix. Capacity expansions include the standalone Singur plant (45,000 MT) and NS Engineering (15,500 MT), with new spring and forging units underway to serve railway wagon builders. Cosmic is pursuing acquisition of Amzen Transportation, aiming to become a fully integrated wagon manufacturer, targeting a ₹550 Cr order book split nearly evenly between railways and infrastructure. Despite short-term working capital pressures and a one-time legal cost impact from Amzen’s takeover process, management emphasizes strong growth prospects, backward integration benefits, and commits to no further promoter dilution till March 2028. The company plans capex of ₹65 Cr for expansions and expects revenue to grow 3-4x on integration of Amzen, targeting robust PAT margins of 15-20% in coming years. Challenges like wheelset shortages affected offtake temporarily but are expected to resolve soon, enabling fresh orders and volume ramp-up.