Cryogenic OGS claims to have developed a strong technological foundation, enabling the creation of a diverse range of products tailored to meet the specific requirements of clients in industries like oil, gas, and chemicals. The company further claims that its products are made from high-quality materials designed for durability, ensuring long-term reliability in performance.
The company claims to have fostered strong, reliable partnerships with suppliers, ensuring a consistent supply of quality materials. The company further states that this enables it to effectively manage inventories and deliver products on time.
The company claims to have built long-term relationships with prominent clients in the oil and gas industry. It further states that its consistent focus on quality, timely delivery, and technological advancements has helped it secure a stable and expanding customer base over the years.
The company is ISO 9001:2015 certified for its quality management systems, ISO 45001:2018 certified for its occupational health and safety management, and ISO 14001:2015 certified for its environmental management systems.
The company has reported a consistent increase in profit after tax (PAT). It increased from Rs 3.28 crore in FY22 to Rs 4.08 crore in FY23 and Rs 5.38 crore in FY24.
The cost of materials consumed accounted for Rs 14.21 crore (58.57 percent) of the company’s revenue in FY24, Rs 11.70 crore (53.12 percent) in FY23, and Rs 16.15 crore (69.22 percent) in FY22. Any increase in the cost of raw materials or a shortfall in the supply could adversely affect the company’s business, results of operations, and financial condition.
The top five customers accounted for 73.21 percent, 68.78 percent, and 68.02 percent of the company’s revenue in FY24, FY23, and FY22, respectively. 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.
A significant portion of the company’s revenue is derived from Gujarat and Maharashtra. Gujarat accounted for Rs 12.64 crore (52.10 percent) of the company’s revenue in FY24, Rs 8.81 crore (40.02 percent) in FY23, and Rs 4.72 crore (20.22 percent) in FY22. Maharashtra accounted for Rs 8.84 crore (36.44 percent) of the company’s revenue in FY24, Rs 5.65 crore (25.67 percent) in FY23, and Rs 11.90 crore (51.03 percent) in FY22. Any adverse political, social, or economic developments in these regions could negatively impact the company’s business and finances.
The company, its promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could hurt the company’s business prospects.
The company reported negative cash flow from investing activities amounting to Rs 1.33 crore in FY24, Rs 0.08 crore in FY23, and Rs 0.81 crore in FY22. Additionally, negative cash flow from financing activities amounted to Rs 0.12 crore in FY24, Rs 1.74 crore in FY23, and Rs 0.78 crore in FY22. If cash outflows continue to exceed inflows in the future, the company may face liquidity challenges.
Cryogenic OGS is exposed to foreign exchange risk due to its import of raw materials from the US and export of products to countries like Singapore, the US, Mauritius, Malta, Nigeria, and Kenya. Any adverse changes in exchange rates could hurt the company’s financial condition.
The company depends on third-party transportation for the delivery of both raw materials and finished goods. Any disruption in transportation services could delay deliveries and damage goods, negatively impacting the company's operations and reputation. Moreover, any increase in freight costs or shortages in transportation availability may further affect the company’s ability to meet its supply chain and customer demands efficiently.