🧠 At a glance
Atmastco Ltd reported a strong revenue of ₹28,957 lakh and profit after tax of ₹1,928.38 lakh in FY25 — a decent growth from ₹1,634.56 lakh last year. But what really stole the spotlight? The auditor’s subtle mic drop: “Inventory records are half manual, half magical. We gave up.” This is what happens when a growing EPC company forgets to grow its Excel sheet hygiene.
🏢 About the Company
Atmastco Ltd is a steel goods and EPC (Engineering, Procurement & Construction) specialist based out of Bhilai, Chhattisgarh. They also have a fancy-sounding subsidiary called Atmastco Defence Systems Pvt Ltd which, as per this year’s report, is the equivalent of an unused gym membership — all promise, zero revenue.
Their business spans:
- Steel fabrication
- Industrial goods trading
- EPC contracts
- Defence manufacturing (…at least on paper)
They operate under two business segments:
- Manufacturing / Fabrication
- Services (likely EPC)
👨💼 Key Managerial Personnel (KMP)
| Name | Role |
|---|---|
| Venkataraman Ganesan | Managing Director |
| Swaminathan Iyer | Director & CFO |
While Ganesan signs the balance sheet, Iyer signs off on the inventory valuations… or at least tries to.
📊 FY25 Financials Breakdown
Here’s a side-by-side comparison of Atmastco’s financial performance:
Consolidated Profit & Loss
| Particulars | FY25 (₹ lakh) | FY24 (₹ lakh) |
|---|---|---|
| Revenue from Operations | 28,957.04 | 22,400.57 |
| Other Income | 70.84 | 107.85 |
| Total Revenue | 29,027.88 | 22,508.42 |
| EBITDA | 3,420.66* | 2,723.57* |
| Depreciation | 371.70 | 445.52 |
| Finance Cost | 1,238.73 | 1,229.80 |
| PBT | 2,746.94 | 2,278.43 |
| Tax Expense | 944.99 | 671.48 |
| Profit After Tax (PAT) | 1,928.38 | 1,634.56 |
| EPS (Diluted) | ₹7.80 | ₹8.24 |
*EBITDA approximated by adding PBT + Depreciation + Finance Cost – Other Income
Balance Sheet Snapshot
| Item | Mar 31, 2025 (₹ lakh) | Mar 31, 2024 (₹ lakh) |
|---|---|---|
| Total Assets | 42,211.56 | 29,087.06 |
| Net Worth | 12,724.77 | 10,796.39 |
| Total Liabilities | 29,486.79 | 18,290.67 |
| Inventory | 13,723.91 | 9,118.77 |
| Trade Receivables | 16,342.28 | 8,423.45 |
| Cash & Cash Equivalents | 4,906.01 | 5,841.33 |
💰 Segmental Revenue FY25
| Segment | Revenue (₹ lakh) | Profit Before Tax (₹ lakh) |
|---|---|---|
| Manufacturing/Fabrication | 24,444.77 | 1,627.88 |
| Services (EPC, etc.) | 4,512.27 | 300.49 |
| Total | 28,957.04 | 1,928.38 |
So yes, the steel side is strong. But the “services” side? Let’s just say it’s being serviced.
🤯 Auditor Roast: “Where’s the Inventory Bro?”
The auditor’s report has more drama than a season finale of Shark Tank:
- 🔥 Inventory Valuation: Based on “project manager estimates” and external consultants. Auditor didn’t verify. (translation: “yeh stock ka bhagwan malik hai”)
- 🧾 Hybrid Stock Register: Half in Excel, half in “manual” mode. Maybe on chits of paper.
- 💼 Prior Period Expenses: ₹243.78 lakh of FY24 expenses dumped into FY25 books.
- 🤝 Oxyzo Loan Dispute: Balance under dispute with no ledger confirmation.
- 🏦 Unresolved Charges: Four charges still showing open on ROC with Tata Capital and SIDBI.
Despite all that, auditors gave a clean opinion. But with enough italicized “Emphasis of Matter” to make your portfolio flinch.
🧮 Forward Value (FV) Estimate
Let’s run a forward-looking FV based on FY25 data:
- EPS = ₹7.80
- Industry PE (infra/EPC avg) = 8x
EduFair Value = ₹62.40
If the stock trades:
- Below ₹60 – value pick, maybe
- Above ₹100 – you’re not investing, you’re manifesting
📦 Cash Flow Punch
Despite ₹28,957 lakh in revenue, the net cash from operations was -₹3,329 lakh.
Why?
- Working capital changes swallowed everything.
- Trade receivables doubled.
- Inventory rose by ₹4,600+ lakh.
- Classic “revenues on paper, cash in future” EPC drama.
📈 Growth Outlook
✅ Positives:
- Revenue jumped 29% YoY
- Services revenue held steady
- Strong pipeline of industrial and infra contracts
- Defence subsidiary (maybe someday…)
❌ Concerns:
- Auditor-level issues on inventory, loans
- Negative cash flow
- Receivables growing faster than sales
- Still no clarity on defence unit activity
🎯 EduInvesting Take
“If you’re building EPC infrastructure but can’t build a working stock ledger, maybe focus on MS Excel before MS Projects.”
Atmastco is growing, no doubt. But too much of that growth is funded on credit. And while their FY25 profit looks strong, the real question is whether they can keep delivering cash — not just Excel-level EBITDA.
We’re bullish on companies that know what they actually own.
🚨 Risks & Red Flags
| Red Flag | Comment |
|---|---|
| Auditor highlighted hybrid inventory | Manual + digital = chaos |
| Inventory valuation not verified | External agency guesstimates |
| Prior year expenses dumped in FY25 | Classic time travel accounting |
| Oxyzo loan balance under dispute | No ledger confirmation |
| High receivables & negative cash | Earnings ≠ collections |
🏁 Final Thoughts
Atmastco Ltd is like that engineering topper who aces the viva but forgot to submit their lab manual. Great marks, decent presentation, but some unanswered questions when you open the file.
📅 Article Metadata
- 🖋️ Written by: Prashant Marathe
- 📆 Date: 31 May 2025
- 🏷️ Tags: Atmastco Ltd, EPC results, SME stocks, audit issues, FY25 earnings, infra stocks, defence manufacturing
