Beezaasan Explotech Limited IPO

Beezaasan Explotech holds the Petroleum and Explosives Safety Organisation (PESO) licenses for manufacturing 45,000 metric tonnes of slurry explosives, 11,400 metric tonnes of emulsion explosives, and 51 million metres of detonating fuse annually.

Beezaasan Explotech is ISO 9001:2015 certified for quality management systems, ISO 14001:2015 certified for environmental management systems, and ISO 45001:2018 certified for occupational health and safety management systems.

The company operates from four manufacturing facilities in Mahisagar District, Gujarat, spanning over 40 lakh sq. ft., equipped with KP machines, strapping machines, and PLC control panels, along with a storage magazine in Felsani, Gujarat, spread over 20 lakh sq. ft.

The company has seen a consistent increase in profit after tax (PAT) over the last three years. PAT increased from Rs 2.74 crore in FY22 to Rs 2.93 crore in FY23 to Rs 4.84 crore in FY24.

Beezaasan Explotech's manufacturing operations are concentrated in Mahisagar district, Gujarat. Any adverse developments in the business environment of this region can negatively impact the company and its financial standing

The top 10 customers of Beezaasan Explotech contributed Rs 35.28 crore (53.48%) (Consolidated), Rs 103.81 crore (55.38%), Rs 127.37 crore (55.59%), and Rs 79.34 crore (55.93%) respectively, to the company’s revenue for the period ended June 30, 2024, FY24, FY23, and FY22. Any failure to retain these key customers, expand the customer base, or a loss of business from these clients can adversely affect the company’s business and financial standing.

As of June 30, 2024, the company had outstanding financial indebtedness of Rs 35.81 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.

The company relies heavily on ammonium nitrate, which accounted for 48.94% (Rs 25.18 crore) of its total raw material costs for the quarter ending June 2024. Any volatility in the supply or pricing of ammonium nitrate can significantly impact the company’s operations, production costs, and profitability.

The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases can be detrimental to the company’s business prospects.

The company is dependent on a few suppliers for its raw material requirements and does not have any long-term contracts with them. Top 10 suppliers of Beezaasan Explotech made for Rs 41.22 crore (81.97%), (Consolidated), Rs 122.13 crore (77.44%), (Consolidated), Rs 173.73 crore (85.10%) (standalone), and Rs 102.39 crore (81.32%) (standalone) of the company’s total expenses for the period ended June 30, 2024, FY24, FY23, and FY22, respectively. Any disruption in supply, inability to secure alternate sources, or price volatility from these key suppliers can adversely affect the company’s operations, production, and financial performance.

A significant proportion of Beezaasan Explotech’s revenues are derived from slurry explosives, which contributed Rs 40.83 crore (64.45%), Rs 132.89 crore (70.89%), Rs 187.49 crore (81.83%), and Rs 116.58 crore (82.18%) to the company’s revenue for the period ended June 30, 2024, FY24, FY23, and FY22, respectively. Any reduction in demand for slurry explosives can adversely affect the company’s business, results of operations, and financial condition.