Divyashakti Limited (NSE: **DIVYASHKT** / BSE: **526315**) is a Hyderabad-based manufacturer and exporter specializing in high-quality natural and engineered stone surfaces. Established in **1991**, the company operates an integrated production facility in **Medak, Telangana**. Historically a 100% Export Oriented Unit (EOU), the company transitioned to a domestic tariff area entity in **April 2023** to optimize its regulatory and tax framework. --- ### **Core Product Portfolio & Market Applications** The company operates under a single reportable business segment: the processing and export of polished stone products. Its portfolio is divided into two primary categories: * **Natural Stone (Polished Granite):** High-grade slabs, tiles, and monuments (ITC Code **6802.2390**). These products are characterized by high compressive strength and mirror-like finishes, catering to the premium flooring, cladding, and funerary industries. * **Engineered Stone (Quartz):** High-quality quartz slabs (ITC Code **6810.9990**) known for their non-porous properties and durability. This vertical is a strategic growth engine designed to capture the rising demand for premium countertops and modern interior facades. **End-Use Markets:** Building and construction, architectural design, consumer interior design, and the global funerary industry. --- ### **Financial Performance & Revenue Metrics** While the company has faced recent topline pressure due to global macroeconomic headwinds, it has maintained profitability through internal cost optimization. | Particulars (₹ in Crores) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Net Sales Revenue** | **63.87** | **69.77** | **75.53** | | **Profit Before Tax (PBT)** | **3.39** | **3.23** | **10.45** | | **Net Profit (PAT)** | **2.54** | **2.32** | **7.83** | | **Earnings Per Share (EPS)** | **2.47** | **2.26** | **7.62** | | **Export Orders on Hand** | **3.00** | **4.00** | **5.00** | **Dividend Policy:** The company declared a **20% dividend** for the period ending May 2024. --- ### **Geographic Concentration & Export Strategy** Divyashakti is an export-heavy entity, with international sales accounting for approximately **99%** of total revenue. * **Primary Market:** The **United States** is the core destination, representing over **98%** of total sales. * **Secondary Markets:** **Germany** and other European regions. * **Revenue Distribution (FY 2024-25):** * **Outside India:** **₹63.31 Crores** * **Domestic (India):** **₹0.56 Crores** **Market Dynamics:** Recent performance was impacted by a slowdown in the **U.S. housing market** driven by elevated interest rates and inflation. Additionally, the global quartz industry has faced **oversupply**, leading to intense pricing pressure. --- ### **Strategic Pivot: Renewable Energy & Diversification** The company is executing a multi-pronged strategy to achieve power security and ESG compliance. * **Solar Power Investment:** The Board has authorized a strategic investment of up to **₹150 Crores** to acquire a **51% to 55% controlling stake** in a third-party solar power project. * **Rationale:** This move aims to transition the company toward **captive consumption** of green energy, significantly reducing reliance on grid power and optimizing long-term energy costs. * **Global Expansion:** In early 2024, the company appointed a **Global Business Development Director** to oversee international market penetration and subsidiary management. --- ### **Operational Infrastructure & Asset Management** * **Manufacturing Base:** Located at **Narsapur Village, Medak District, Telangana**. * **EOU Status Exit:** Effective **April 26, 2023**, the company cancelled its 100% EOU status and Green Card due to the diminishing benefits of export promotion schemes. * **Land Revaluation:** In FY 2024-25, the company revalued its land under **Ind AS 16**, resulting in a **Revaluation Surplus of ₹73.65 Crores**. The total revalued land value now stands at **₹74.66 Crores**. * **Liquidity Position:** Cash and cash equivalents stood at **₹1.07 Crores** as of March 2025, down from **₹8.57 Crores** in March 2024. --- ### **Corporate Governance & Shareholding Structure** * **Leadership:** Managed by **Sri N. Hari Hara Prasad** (Managing Director). **Mr. N. Sai Venkateshwara Prasad** leads Global Business Development and Corporate Strategy. * **Shareholding Reclassification:** In **January 2025**, the company reclassified certain promoters to public shareholders, adjusting the promoter holding from **74.80%** to **73.20%**. * **Related Party Transactions:** Significant export operations are conducted through **Cosmos Granite** entities (West, South East, South West), where the MD holds interests. Transactions with these entities totaled **₹73.11 Crores** in FY 2023-24. * **Compliance Note:** The company received a **warning letter** from the Stock Exchange in **January 2025** regarding a three-month delay in disclosing a promoter reclassification application originally submitted in 2022. --- ### **Risk Profile & Mitigation Framework** | Risk Category | Description & Mitigation | | :--- | :--- | | **Market Concentration** | High reliance on the **USA** (98%+ of sales). Mitigation involves exploring new European and domestic markets. | | **Currency Volatility** | Exposure to USD/INR fluctuations. The company utilizes a **risk management mechanism** to hedge foreign exchange exposure. | | **Raw Material Supply** | Shortage of **high-quality granite blocks** due to regulatory and environmental restrictions on quarrying. | | **Credit Risk** | Risk of defaults in international markets. The company performs credit assessments and serves stable entities like **Indian Railways**. | | **Interest Rate Risk** | Exposure to floating rates on borrowings; managed through a mix of internal accruals and structured debt. | | **CSR Compliance** | Reported delays in spending the mandatory **2% of average net profit**; currently identifying a suitable trust for implementation. |