Precision Metaliks Limited is a specialized engineering firm integrated into the global automotive supply chain. Operating from the **Visakhapatnam Special Economic Zone (VSEZ)**, the company functions as a high-precision value-added service provider, transforming raw-casted components into finished, high-performance products. Listed on the **NSE EMERGE (SME Platform)**, the company is currently pivoting toward a global-first strategy centered on lightweight materials and the burgeoning Electric Vehicle (EV) ecosystem. --- ### **Core Manufacturing Operations & Technical Infrastructure** The company operates within a **single reportable business segment**: the processing of **raw-casted alloy wheels** (semi-finished) into finished alloy wheels through specialized engineering services. * **Strategic Location:** Operations are centralized at **Shed No. 5, Phase-II, VSEZ, Duvvada, Visakhapatnam**, Andhra Pradesh. This location provides logistical advantages for both import and export activities. * **In-house Technology:** The company utilizes proprietary **in-house technology** for all manufacturing processes. No external technology was absorbed or required in recent fiscal periods, ensuring full control over intellectual property and process efficiency. * **Energy & Continuity:** To mitigate power-related downtime, operations are supported by **diesel generators** as emergency stand-by units. The current strategy focuses on **optimum energy utilization** rather than new capital expenditure in conservation equipment. * **Asset Profile:** Notably, the company **does not hold any immovable property** and has not pledged fixed assets as security for credit facilities, maintaining a lean balance sheet. --- ### **Strategic Growth Levers: The Pivot to EV & Global Markets** Precision Metaliks is aggressively positioning itself to benefit from the structural shift in the automotive industry toward lightweighting and sustainability. * **Alloy Wheel Specialization:** Management projects a volume growth potential of over **15% annually**, driven by the global transition to alloy wheels which offer better performance and aesthetics than traditional steel. * **EV & Smart Mobility:** The company is capitalizing on government **incentives and subsidies** for the EV segment. It is also exploring new verticals in **Smart Mobility Solutions**, including Ride-sharing, Car rentals, and Mobility-as-a-Service (MaaS). * **PLI Scheme Tailwinds:** The business is a beneficiary of the **Production Linked Incentive (PLI) Scheme** for Automobile and Auto Components, which has been extended for five consecutive years starting from **FY 2023-2024**. * **Material Innovation:** Adopting advanced materials to meet stringent new **safety standards** and vehicle performance requirements. --- ### **Trade Profile & Export Momentum** The company is successfully transitioning from a domestic-focused processor to an export-oriented manufacturer. While it remains a net importer of raw materials, the growth in export revenue is exponential. | Particulars (Rs. in Lakhs) | FY 2024-25 (Current) | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Earnings (Exports of Products)** | **404.72** | **238.24** | **18.35** | | **Outgo (Import of Raw Materials)** | **1,395.13** | **2,740.65** | **9,629.72** | *Note: The sharp decline in import outgo suggests a shift toward more efficient inventory management or localized sourcing strategies.* --- ### **Financial Performance & Capital Structure** To fund its expansion, the company has adopted a conservative dividend policy, retaining **100% of profits** for business growth. **Standalone Financial Summary:** | Particulars (₹ in Lakhs) | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Revenue from Operations** | **19,578.75** | **18,862.88** | | **Total Income** | **19,643.25** | **18,905.85** | | **Total Expenses** | **18,917.35** | **18,169.93** | | **Profit Before Tax (PBT)** | **725.90** | **735.92** | | **Profit After Tax (PAT)** | **678.38** | **710.43** | **Key Efficiency Ratios:** | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Operating Profit Margin** | **3.08%** | **4.27%** | **4.20%** | | **Net Profit Margin** | **0.60%** | **3.45%** | **3.77%** | | **Current Ratio** | **1.68** | **1.79** | **1.73** | | **Trade Receivables Turnover** | **1.13** | **0.41** | **0.49** | **Capital Strengthening:** In August 2024, the company completed a **Preferential Issue** of **67,00,000** shares at **Rs. 10** each. This increased the **Authorized Share Capital** to **Rs. 25,00,00,000** and the **Paid-up Share Capital** to **Rs. 22,95,90,660**, providing the necessary liquidity for manufacturing capacity expansion. --- ### **Risk Management & Internal Controls** The company operates in a high-volatility sector and employs a **Robust Framework** to mitigate operational and financial risks. * **Raw Material Sensitivity:** **Aluminum** is the primary cost driver. Fluctuations in aluminum prices directly impact the **Final Product Cost**. * **Currency & Interest Rates:** The company uses a **Natural Hedge** (balancing imports against exports) to manage foreign exchange risk. Interest rate risk is monitored via sensitivity analysis on **Working Capital funding** linked to external benchmarks. * **Credit Risk Mitigation:** Management utilizes the **Expected Credit Loss (ECL) Method** and requires **Advance Payments** for specific business segments. The **Trade Receivables Turnover** improved significantly to **1.13** in FY25, reflecting tighter credit control. * **Internal Audit:** **M/s KPSV & Associates** conducts structured internal audits, reporting directly to the Audit Committee to ensure compliance and operational efficacy. --- ### **Compliance & Solvency Status** While the company maintains a healthy liquidity position, certain statutory and regulatory observations are noted: * **Statutory Dues:** As of **March 31, 2025**, there were reported delays in depositing undisputed **Income Tax** dues, with some amounts outstanding for over **six months**. * **Outstanding Demands:** A total demand of **Rs. 1.35 Crores** exists regarding statutory dues. However, the company reports **Nil Contingent Liabilities** and no pending litigations that would materially impact financial stability. * **Solvency:** Auditors have confirmed there is **no material uncertainty** regarding the company’s ability to meet liabilities falling due within **one year**. No **cash losses** were incurred in the recent fiscal cycles. * **Inventory Integrity:** Physical verification of inventory is conducted regularly; no material discrepancies exceeding **10%** have been reported.