CMP: ₹270.00 | +1.03% Today
✍️ By Prashant Marathe | Published: May 27, 2025
📍 At a Glance
Sunflag Iron & Steel reported a consolidated PAT of ₹304 Cr for FY25, down ~16% YoY, despite a revenue bump to ₹3,615 Cr. The board recommended a final dividend of ₹0.75/share, and the company also shuffled auditors and reappointed a senior independent director. While steel prices showed volatility, Sunflag’s balance sheet strength kept the stock steady. But the big question is: will margins keep shrinking while input costs rise?
🧾 FY25 Financial Summary (Consolidated)
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹3,615 Cr | ₹3,503 Cr | 🔼 +3.2% |
| Other Income | ₹57 Cr | ₹65 Cr | 🔻 -12.3% |
| Total Income | ₹3,672 Cr | ₹3,568 Cr | 🔼 +2.9% |
| EBITDA (approx) | ₹610 Cr* | ₹640 Cr* | 🔻 -4.7% |
| Profit Before Tax (PBT) | ₹410.78 Cr | ₹438.72 Cr | 🔻 -6.4% |
| Profit After Tax (PAT) | ₹303.59 Cr | ₹360.25 Cr | 🔻 -15.7% |
| EPS (Diluted) | ₹7.37 | ₹8.99 | 🔻 -18% |
*Estimated using back calculation from depreciation and PBT.
💸 Dividend Declared
- ✅ Final Dividend: ₹0.75/share (7.5% on face value ₹10)
- 📅 To be approved in the upcoming AGM
- 🏦 Payout likely in Q2 FY26
🏢 Boardroom Moves
Sunflag also approved multiple appointments and reappointments:
| Name | Role |
|---|---|
| Mr. M.A.V. Goutham | Independent Director (Reappointed till 2030) |
| GR Paliwal & Co. | Cost Auditor (FY26) |
| VTSA & Co. | Tax Auditor (FY25) |
| PwC Services LLP | New Internal Auditor (FY26) |
⚙️ Commitment to governance = Strong, with tier-1 auditors coming in.
🏗️ Balance Sheet Highlights (Standalone)
| Particulars | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹1,116 Cr | ₹1,083 Cr |
| Equity Share Capital | ₹18 Cr | ₹18 Cr |
| Other Equity | ₹836 Cr | ₹822 Cr |
| Borrowings (Long + Short) | ₹135 Cr | ₹146 Cr |
| Cash & Equivalents | ₹92 Cr | ₹91 Cr |
🟢 No major increase in debt. Solid equity cushion.
🔵 Cash position stable. Company is not aggressively levered.
📉 Cash Flow Story
| Item | FY25 | FY24 |
|---|---|---|
| Net Cash from Operations | ₹243 Cr | ₹262 Cr |
| Net Cash Used in Investing | ₹153 Cr | ₹148 Cr |
| Net Cash from Financing | ₹14 Cr | ₹(93 Cr) |
| Net Change in Cash | ₹104 Cr | ₹21 Cr |
💡 Despite profit decline, cash generation remains healthy, aided by controlled CAPEX.
🧠 EduInvesting Take
“If Tata Steel is Ambani, Sunflag is that clean-shaven UPSC topper from Nagpur — quietly showing up, never shouting.”
Sunflag isn’t making headlines, but it’s playing the steel game with restraint:
- ✅ Stable cash flows
- ✅ Margins holding in a downcycle
- ✅ Auditors upgraded (hello PwC)
- ✅ No shady CAPEX
However, shrinking EPS and muted YoY profit can’t be ignored. If the next 2 quarters don’t show margin revival, this script could lose steam.
⚠️ Risks & Red Flags
- 📉 Falling margins despite rising topline
- 🧱 Input cost inflation (ore + energy) may dent FY26 profits
- 🌍 Global steel demand still soft, especially in Europe
- 🤐 No major expansion plans = limited narrative push
📦 Final Thought
“Sunflag has iron in its name — but it’ll need steel nerves to protect margins.”
At ₹270, it’s not cheap. But if you want a low-debt, dividend-paying steel stock with clean books and Nagpur HQ vibes… this one’s quietly building.
🏷️ Tags: Sunflag Iron & Steel, FY25 results, steel stocks, NSE: SUNFLAG, dividend stocks India, low debt companies, PwC audit, steel margins, EduInvesting
