Om Metallogic claims to have an efficient, technology-driven manufacturing process at its facility in Ballabhgarh, Haryana, with an installed capacity of 5,280 tonnes per annum for processing aluminium scrap. The company emphasises flexibility in its operations, enabling it to process various types of scrap and manufacture alloys in line with customer specifications, all while maintaining cost-effectiveness.
Om Metallogic claims to have developed strong, long-standing relationships with its customer base, which includes manufacturers in the automotive and aluminium product sectors. Despite not entering into long-term agreements, the company has successfully retained many of its clients for extended periods, ensuring consistent and uninterrupted supplies due to its reliable service and quality products.
The company is ISO 9001:2015 certified for its quality management systems.
The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 37.81 crore in FY23 to Rs 38.54 crore in FY24 and Rs 60 crore in FY25. PAT increased from Rs 1.10 crore in FY23 to Rs 2.22 crore in FY24 and Rs 4.12 crore in FY25.
The top five customers accounted for 95.85 percent of the company’s revenue in FY25, 92.56 percent in FY24, and 87.68 percent in FY23. Furthermore, the company does not have any long-term agreements with these customers, and the success of its business is significantly dependent on maintaining good relationships with them. Any failure to retain these key customers or a loss of business from them could adversely affect the company’s business and financial standing.
The company reported negative cash flow from investing activities amounting to Rs 0.06 crore in FY25, Rs 0.24 crore in FY24, and Rs 0.01 crore in FY23. Additionally, negative cash flow from financing activities amounted to Rs 1.59 crore in FY25, Rs 0.94 crore in FY24, and Rs 0.62 crore in FY23. Any continuation of negative cash flow in the future may impact the company’s liquidity and growth prospects.
Cost of materials consumed accounted for Rs 50.79 crore (84.66 percent) of the company’s revenue in FY25. Any sudden increase in the price of such materials could adversely affect the company’s results of operations and financial condition.
The top 10 suppliers accounted for 93.26 percent, 89.86 percent, and 78.76 percent of the company’s total purchases in FY25, FY24, and FY23, respectively. Furthermore, the company does not have long-term agreements with any of its suppliers. Any disruption in supplies from one or more of these vendors could adversely affect the company’s business and finances.
Haryana accounted for Rs 57.81 crore (96.36 percent) of the company’s revenue in FY25, Rs 34.93 crore (90.62 percent) in FY24, and Rs 33.49 crore (88.58 percent) in FY23. Furthermore, the company’s sole manufacturing facility is also located in this state. This heavy reliance on a single region exposes the company to risks associated with economic fluctuations, competitive pressures, or demographic changes in Haryana, any of which could significantly impact its revenue and overall financial performance.
Om Metallogic relies on third-party transportation providers for the delivery of its input materials and finished products. The company does not have formal agreements with these providers, and disruptions such as transportation strikes, accidents, or natural disasters could hurt its operations and reputation. Any delays in delivery or increase in freight costs, along with the unavailability of transportation, could adversely affect the company’s business and financial results.
The company and its promoters are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
Om Metallogic’s business is heavily reliant on the performance of the steel and automotive parts industries. Any downturn or cyclical fluctuations in these sectors could lead to reduced demand for the company’s products, adversely impacting its cash flows and financial condition. Factors such as fluctuations in steel prices, changes in domestic and international demand, and economic conditions affecting the automotive sector, including consumer demand and inflation, could further exacerbate these risks.
As of FY25, the company had financial indebtedness of Rs 10.30 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.