Shivalik Bimetal Controls Ltd. Reports Resilient Q1FY25 Despite Market Challenges

At a meeting on August 6th, Shivalik Bimetal Controls Ltd. (SBCL) announced its Q1FY25 financial results. Despite a 5.18% decrease in total income due to lower commodity prices and geopolitical tensions, the company showed volume growth of 8.58%. Challenges included increased operational costs, yet strong market performance in Europe and Asia offset declines in the Americas.

At a meeting held on August 6th, the Board of Directors of Shivalik Bimetal Controls Ltd. (SBCL) released the financial results for Q1FY25. As a global leader in thermostatic bimetal/trimetal strips, shunt resistors, and silver contacts, SBCL navigated a challenging global market environment marked by commodity price fluctuations and geopolitical tensions. The Company demonstrated resilience and continued to drive positive volume growth.

Q1FY25 Financial Performance Summary: Total Income decreased marginally by 5.18% to ₹107.22 Crore from ₹113.07 Crore in Q1FY24, reflecting the effects of lower commodity prices for key input metals. Product Volumes grew by 8.58% YoY in Q1FY25, from 5,47,916kg in Q1FY24 to 5,94,951kg in Q1FY25. Profit Before Tax (PBT) fell by 18.75% to ₹21.75 crore, with PBT as a percentage of sales decreasing by 339 basis points to 20.29%. These declines are primarily due to rise in Cost of Goods Sold (COGS), marginally due to increased manpower costs with investment in people and R&D, and to some degree, higher operational expenses. Management is implementing enhanced cost management strategies towards future mitigation, through improved manufacturing efficiencies and implementing selling price adjustments that are absorbable by the market.

Q1FY25 Highlights from Shunt Resistor Sales: The strong growth in Europe, Asia, and India has mitigated the reduction in sales from the Americas to a great extent, maintaining Shivalik's robust financial health and reaffirming its strategic focus on having a diversified market presence. Europe: Sales in Europe surged by 134.40%, reaching Rs. 8.04 crore in Q1FY25 off a small base of Rs. 3.43 crore in the same period last year. This growth is the result of Shivalik's successful market penetration and increasing demand for its high-quality shunts in the European region. Asia (Excluding India): The Asian market recorded a substantial increase of 67.02%, with sales rising to Rs. 17.03 crore from Rs. 10.20 crore in Q1 FY24. This growth stems from Shivalik's strategic expansion and the robust demand across various Asian markets outside India. India: The Indian market continued to show steady growth, with sales increasing by 11.34% to Rs. 11.26 crore in Q1FY25 from Rs. 10.11 crore in Q1 FY24. This consistent performance is the outcome of the steadily rising domestic demand and the Company's solid foothold in its home market.

(With inputs from agencies.)