New Delhi company expects continued robust demand from Asia
Shivalik Bimetal Controls Ltd https://www.shivalikbimetals.com/ has reported robust to stable market performances in Europe, India and Asia for the FY23-24.
Europe has maintained stable performance across both segments. Shunt sales in Q4 FY 23-24 increased by 23.37% compared to last year’s quarter, with an annual growth rate of 4.12%. Additionally, Thermostatic Bimetal/Trimetal sales in Europe grew by 25.79% for FY24, reflecting steady and reliable market presence and performance https://fieo.org/ .
Consistent Growth in India for Thermostatic Bimetal/Trimetal Sales: India’s performance in the Thermostatic Bimetal/Trimetal segment has been remarkable, demonstrating robust growth and strong market penetration https://attentionindia.com/ .
In Q4 FY 23-24, sales surged to Rs.35.14 crore, marking a significant 31.66% increase compared to Rs.26.69 crore in Q4 FY 22-23.
On an annual basis, the upward trajectory continues, with sales reaching Rs.134.17 crore in FY 24, up 31.69% from Rs.101.88 crore in FY 23. This consistent year-over-year growth underscores the Company’s expanding market presence and successful execution in capturing a larger market share.
This robust performance underscores the significant opportunities within the Indian market, driven by increased demand for smart meters, switchgear, and electric vehicles, aligning well with the national push towards modernization and electrification.
Robust Shunt Sales Growth in Asia: https://www.ibef.org/ Asia’s performance in both the Shunt and Thermostatic Bimetal/Trimetal segments reveals a dynamic and varied landscape. For Shunt sales, Asia (excluding India) experienced extraordinary growth in Q4 FY 23-24, with sales soaring to Rs.13.47 crore from Rs.2.90 crore in Q4 FY 22-23, representing an impressive 364.48% increase.
Annually, sales rose to Rs.39.59 crore in FY 24, up 32.84% from Rs.29.81 crore in FY 23, indicating an expanding market presence. Conversely, the Thermostatic Bimetal/Trimetal segment faced challenges, with Q4 FY 23-24 sales declining to Rs.2.61 crore from Rs.11.61 crore in Q4 FY 22-23.
This dichotomy highlights strong growth potential in the Shunt market, while the company is actively addressing the challenges in the Thermostatic Bimetal/Trimetal sector by implementing strategic adjustments to enhance growth across all Asian markets.
Chairman S.S. Sandhu said in FY 24 report on 30 May, “Over the past five years, we have built a solid foundation for growth and profitability, and I am confident that our strategic initiatives will continue to drive success in the years to come.
“Our focus on expanding domestic demand, coupled with the pursuit of global partnerships, particularly in the silver contacts segment, positions us favourably for future success. We expect robust growth in the domestic market to continue, and we are prepared to take advantage of the anticipated rebound in the USA.
“Strategically, we remain focused on expanding our product lines and leveraging our research and development capabilities to drive forward integration. Our financial strength ensures that we remain a debt-free company and are ready for any inorganic expansion should a strong opportunity present itself.”
CFO Rajeev Ranjan added, “Shivalik is well-positioned for long-term growth, underpinned by strong market tailwinds, a robust balance sheet, and solid financial performance https://www.makeinindia.com/home/ .
“The company also benefitted from a Production Linked Incentive (PLI) scheme, adding Rs.8 crore in cash and Rs.12 crore as other income for a significantly raised PAT.
“Our consistent earnings growth, highlighted by the 43.98% CAGR in EPS, demonstrates our commitment to delivering substantial shareholder value.
“Looking ahead, we anticipate steady growth recovery in the Atlantic region and continued robust demand from Asia. During FY2024, we formalized major contracts, foreshadowing a promising business pipeline. Additionally, the recent addition of a property provides sufficient headroom for our forward integration and expansion of assembly lines.”
Founded in 1984 in New Delhi, Shivalik Bimetal Controls manufactures and sells thermostatic bimetal/trimetal strips for switching components used in electrical, electronics, automotive, and industrial applications.
The company reported 11.48% increase in FY24 PAT at Rs.80.97 crore from FY23’s Rs.72.63 crore. Total FY24 income was Rs.449.40 crore, up 6.94% on FY23’s Rs.420.23 crore.
With plants in Chambhaghat and Kather, Solan, operated by a team of 808 vastly skilled people, Shivalik serves more than 125 clients globally. Fiinews.com
