BWRL is a manufacturer of metal wire ropes (used in lifting equipment such as cranes, elevators, among others), wire rope assemblies and defense products
• The company was earlier managed by the Shah Family, and later in 2010, it was acquired by Mr. ML Mittal, current promoter and managing director
• BWRL has two manufacturing plants at Atgaon (capacity of 6,000 MTA) and Chalisgaon (capacity of 66,000 MTA)
Company is listed as a supplier with government and semi-government organisations namely Indian Railways, Shipping Corporations of India, ONGC, Coal India Limited, BHEL, major Port trusts, and electricity boards, among others
BWRL also exports to over 55+ Countries including Australia, Middle East, Nepal, New Zealand, UK, US, Singapore, South Africa, Vietnam and many more
• Exports accounted for 77% of the sales in FY 24 and Domestic 23%
• BWRL’s scale of operations grew by 5% on a y-o-y basis from Rs 589.06 crore in FY23 to Rs 621.84 crore in FY24 supported by growth in volumes by 6% on a y-o-y basis
• The realization per ton was flat, despite declining input costs, as the company continues to offer its product at a premium considering increased acceptability in the international market
• BWRL’s operations are working capital intensive in nature due to the requirement of holding sizeable inventory and extending credit to its customers. The company maintains an average inventory of 80- 90 days and extends a credit period of 30-90 days to its customers
• With largely order-backed procurement and customers nature of products, the company is able to pass on most input cost volatility to its customers, however with a lag
• Government has extended PSI subsidy scheme (refund of SGST) till October 2025, which was expected to expire in October 2023
The company received subsidy worth Rs 40 crore in FY24 and Rs 14 crore in the current year, 50% of which, has been utilized towards prepayments of the term loans (per resolution plan)
• As of March 31, 2024, the company had a total PSI subsidy receivable of around 95 crore
Promoters recently increased their stake around 220-230
