Goyal Salt has a production facility capable of handling comprehensive refining processes, with a daily production capacity of approximately 700 tonnes.
Their revenue increased at a CAGR of 39.91%. Starting at Rs. 6012.96 lakhs in 2020-21, revenues rose to Rs. 11770.68 Lakhs in 2022-23.
The company's profits after tax experienced a CAGR of 127.83%. From Rs. 68.15 lakhs in 2020-21, their profits rose to Rs. 353.74 lakhs in 2022-23.
Goyal Salt has played a role in supporting various government welfare initiatives. Their products have been delivered to the governments of three states: Madhya Pradesh, Uttar Pradesh, and Jharkhand.
They have provided refined iodized salt to the Madhya Pradesh government as per orders from the Madhya Pradesh Civil Supply Corporation Limited, serving the Public Distribution System (PDS). Additionally, they have previously fulfilled similar orders for the governments of Uttar Pradesh and Jharkhand under the PDS program.
Goyal Salt's refining facility in Rajasthan faces various risks, including regulatory, weather-related, and geographical factors. Changes in Rajasthan or India's regulatory, economic, or demographic landscape could impact the business. Unusual and non-seasonal rainfalls may harm the quality and supply of their main raw material, raw salt, adversely affecting their financial well-being.
Over the past three years (2021, 2022, and 2023), the salt refining process has incurred losses of 20.48%, 24.30%, and 25.86%, respectively. Any further increases in process losses could significantly raise operational costs, reduce profit margins, and negatively affect financial performance.
Goyal Salt relies heavily on its top 10 customers, generating 50.84%, 60.35%, and 68.47% of its revenue in 2021, 2022, and 2023. Should one or more of these customers decide to source their products elsewhere, it may adversely affect the company's business and financial condition.
The company lacks long-term agreements with suppliers for raw materials and packaging materials. A rise in costs or shortages in the availability or quality of these materials could adversely impact Goyal Salt's business.
The company heavily relies on third-party suppliers, accounting for 11.39%, 24.06%, and 37.85% of total sales revenue in 2020-21, 2021-22, and 2022-23. The absence of formal arrangements with these third parties leaves the company vulnerable to disruptions in their production or manufacturing facilities, deviations from quality standards, or fluctuations in pricing, potentially harming the company's business.
In recent years, the company has experienced negative cash flow in its operating, investing, and financing activities.
Goyal Salt's substantial sales are driven by three main products: Refined Free Flow Iodized Salt, Refined Free Flow Industrial Salt, and Refined Half Dry Salt. Any factors impacting the sales of these major products could adversely affect the company's business.
As of June 30, 2023, the company's total outstanding debt amounted to Rs. 1,310.04 lakhs, including secured debt of Rs. 1,385.76 lakhs obtained from banks.