**Hemang Resources Limited** (formerly known as **Bhatia Industries and Infrastructure Limited**) is an Indian listed entity operating a diversified, asset-light business model. The company specializes in the procurement and distribution of thermal coal and the strategic development of real estate and infrastructure assets. Following a period of significant financial restructuring, the company is currently pivoting toward high-growth opportunities in the Indian urban housing and energy sectors. --- ### **Core Business Segments & Operational Model** HRL operates through two primary reportable divisions, maintaining a lean operational structure with **no manufacturing plants** and **no subsidiaries, associates, or joint ventures**. #### **1. Coal Trading & Logistics Division** This division focuses on the end-to-end procurement and sale of **Imported Thermal Coal** across all grades. * **Sourcing Strategy:** Coal is procured exclusively from reputable international mines to ensure quality consistency and maintain long-term client relationships. * **Value-Added Services:** Beyond trading, the company provides ancillary **Stevedoring** and **Logistics services** to streamline the supply chain for its customers. * **Market Positioning:** The division targets the energy security gap in India, where domestic coal supply typically falls short of demand by **20% to 25%**. #### **2. Infrastructure & Real Estate Division** This segment focuses on the purchase, sale, and development of land and commercial properties. * **Scope of Activities:** Operations include **Sales and Leasing**, property management, colony expansion, and renovation projects. * **Strategic Focus:** The company is increasingly aligning this division with national infrastructure initiatives, such as the **Smart Cities Mission** and **PM Awas Yojana (PMAY-U 2.0)**. --- ### **Financial Performance & Segment Analysis** The company has experienced significant volatility in turnover, primarily due to working capital constraints and shifts in the coal market. However, FY25 marked a return to marginal profitability. | Segment | Turnover FY25 (Cr) | Turnover FY24 (Cr) | Turnover FY23 (Cr) | Segment Assets (Mar '25) | | :--- | :---: | :---: | :---: | :---: | | **Coal Trading** | **1.27** | **30.57** | **191.23** | **24.36 Cr** | | **Infrastructure** | **7.53** | **6.55** | **13.82** | **1.61 Cr** | | **Total Revenue** | **8.80** | **37.12** | **205.05** | **-** | **Key Financial Metrics:** * **Profitability:** After a loss in FY24, the company reported a **Profit After Tax (PAT) of ₹0.54 Crore** in FY25. * **EBITDA:** Recovered to **₹0.87 Crore** in FY25 from a negative **(₹3.24 Crore)** in FY24. * **Revenue Trends:** Turnover decreased by **76.28%** in FY25, following an **81.89%** decline in FY24, largely due to reduced coal volumes and the **non-availability of working capital facilities**. --- ### **Capital Structure & Shareholding Pattern** HRL has undergone a rigorous financial cleanup, including a **One Time Settlement (OTS)** with the **Bank of India** and the securing of a **₹25 Crore Working Capital Term Loan**. * **Authorized Capital:** **₹23 Crore** | **Paid-up Capital:** **₹21.2 Crore** * **Equity Dematerialization:** **96.91%** of shares are held in demat form as of March 2025. * **Preference Shares:** The company has **800,000** unlisted **Cumulative Redeemable Preference Shares** (issued at **₹100** each). * **Dividend Rate:** Reduced from **8% to 2%**. * **Redemption:** Extended to **May 6, 2026**, with plans for redemption in tranches. * **Shareholding Pattern (as of Sept 2024):** * **Promoter Group:** **63.65%** * **General Public:** **25.82%** * **Bodies Corporate/Banks/Others:** **10.44%** * **NRI:** **0.09%** --- ### **Strategic Growth Drivers & Market Alignment** The company is pivoting its strategy to capitalize on Indian macroeconomic tailwinds and government policy shifts. #### **Real Estate & Urbanization** HRL is positioning itself to address the massive urban housing shortage, currently estimated at **1 crore units**, with a projected need for **2.5 crore affordable units by 2030**. * **Investment Support:** Leveraging the **Urban Challenge Fund (₹1 lakh crore)** and **Swamih Fund II (₹15,000 crore)**. * **Commercial Growth:** Targeting the **14% increase** in office leasing and the expansion of **SEZs** (where **100% FDI** is permitted). * **Strategic Lending:** In March 2026, HRL approved a loan of up to **₹75,00,000** to **Harcreage Real Estates Private Limited** to bolster real estate activities. #### **Coal Sector Adaptation** While the government pushes for **Import Substitution**, HRL monitors domestic production targets (**101.2 crore tonne target for FY24**) to pivot its trading strategies. * **Policy Utilization:** Leveraging the **MMDR Amendment Act 2021**, which allows captive mine owners to sell up to **50%** of production in the open market, creating new trading opportunities. | Sectoral Growth Projections | Metric / Target | Period | | :--- | :--- | :--- | | **Real Estate Market** | **9.2% CAGR** | **2023-2028** | | **Residential Market Share** | Increase to **29%** (Top Developers) | **FY24** | | **PMAY-U 2.0 Investment** | **₹10 lakh crore** | **Next 5 Years** | | **FDI in Construction** | **US$ 44.46 billion** | **2000 - Sept 2024** | --- ### **Risk Profile & Legal Contingencies** Investors should note significant legacy risks and legal entanglements that could impact future liquidity. #### **1. Contingent Liabilities** The company carries a massive **Corporate Guarantee of ₹18,166.00 Lakhs** (₹181.66 Crore) issued to **Union Bank of India** on behalf of a group entity, **Bhatia Global Trading Ltd.** #### **2. High-Value Litigations** * **Vitol Execution Petition:** The Bombay High Court previously labeled HRL as an **"alter-ego"** of the ANRIL/BIL group, leading to the attachment of **34,300 MT** of coal. HRL is currently contesting title claims in the **Madurai High Court**. * **Tax Disputes:** * **Gujarat VAT/CST:** A demand of **₹10.33 Crore** (FY 2012-13) is under appeal. * **Customs Duty:** Multiple demands totaling over **₹3.94 Crore** regarding coal classification (Bituminous vs. Lignite). * **Debt Recovery:** HRL has initiated **IBC Section 9** proceedings against **GTC Coal Private Limited** and multiple **Section 138 (Cheque Bounce)** cases to recover dues from defaulting debtors. #### **3. Operational Risks** * **Credit Rating:** The company previously held a **'D' (Default)** rating from **ICRA** (March 2021). While the OTS has improved the outlook, the company remains in a recovery phase. * **Policy Risk:** Aggressive government mandates to meet **100% PPA requirements** through domestic coal could permanently reduce the addressable market for HRL’s imported coal trading business.