Premium Plast IPO

Premium Plast holds IATF-16949 certification for specialised plastic injection and blow mould components. The company is also ISO 9001:2015 certified for quality management systems and ISO 14001:2004 certified for environmental management systems.

The company claims to excel in the production of automotive parts and has manufactured over 600 components.

Premium Plast operates three manufacturing units, with two located in Pithampur, Madhya Pradesh, and one in Vasai, Maharashtra. The combined installed capacity of these units is 1,975 MTPA.

The company claims to be committed to sustainable manufacturing practices, which have enabled its facilities to achieve 'zero-discharge' status, ensuring no waste output into the environment.

The company also claims to conduct a variety of strength tests, including load and fatigue tests, vibration tests, cyclical endurance tests, and tests for chemical and heat resistance. These strict testing protocols ensure that all products meet the required industry standards for safety, durability, and environmental compliance.

The company has recorded a consistent rise in revenue from operations and profit after tax (PAT) over the last few years. Revenue from operations increased from Rs 30.99 crore in FY22 to Rs 44.04 crore in FY23 to Rs 46.71 crore in FY24, while PAT increased from Rs 0.78 crore in FY22 to Rs 1.59 crore in FY23 to Rs 4.77 crore in FY24.

Premium Plast's revenue is dependent on some key clients, particularly VE Commercial Vehicles Limited. A significant portion of its revenue comes from VE Commercial Vehicles Limited, which contributed 84.61%, 84.45%, 81.20%, and 85.86% to the total sales for the period ending June 30, 2024, and FY24, FY23, and FY22, respectively, while the top 10 customers contributed Rs 11.80 (97.16%) for the period ending June 30, 2024, and Rs 45.82 crore (45.82%), Rs 43.07 crore (97.79%), and Rs 30.53 crore (98.51%) in FY24, FY23, and FY22 to the revenue from operations, respectively. The company does not have any firm commitments with any of its major clients. Therefore, any loss of these clients or a reduction in business from them can adversely affect the company’s operations and revenue.

A major portion of the company’s revenue is generated from a single segment—the automotive moulding products division. This segment contributed Rs 39.23 crore (84%), Rs 36.11 crore (82%), and Rs 24.79 crore (80%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any disruptions in this division could be detrimental to the company’s operations and finances.

The company's manufacturing operations are based in Maharashtra and Madhya Pradesh. Any disruption in the business environment of these states can adversely affect the company’s operations and harm its financial performance.

Premium Plast's success is closely tied to the performance of the passenger vehicle market in India. Any negative shifts in this market can adversely affect the company's business.