IPO Overview for Aeron Composite Limited

Aeron Composite Limited is gearing up for its IPO with a fresh issue of 44,88,000 equity shares, including a market maker portion of 2,28,000 shares. The IPO will be conducted through a 100% book building process, with shares priced between ₹121 and ₹125 each. The face value of each share is ₹10, and the minimum bid lot is 1,000 shares. Retail investors can subscribe up to ₹2,00,000, while eligible employees can invest up to ₹5,00,000. Bids can be placed from 10:00 AM to 5:00 PM, with Hem Securities Limited as the book running lead manager and Axis Bank Limited as the sponsor bank.

Company Profile: Aeron Composite Limited

Aeron Composite Limited, a member of 'A GROUP,' excels in providing eco-friendly FRP/GRP composite solutions for both industrial and recreational uses. Established to pioneer advanced composite products, Aeron offers services from conceptual design to after-sales support, ensuring compliance with national and international standards. With key benefits including corrosion resistance, impact resistance, and low maintenance, Aeron's products are ideal for industries such as water management, oil and gas, and transportation. Headquartered in Ahmedabad, the company operates a state-of-the-art facility in Changodar and plans to expand to a new Composite City of 65,000 sq. meters.

Aeron Composite Limited Total Assets Overview

As of March 31, 2023, Aeron Composite Limited's total assets amounted to ₹69,09.41 lakh, up from ₹60,63.23 lakh the previous year. The company's non-current assets increased to ₹10,16.64 lakh, driven by higher investments in property, plant, and equipment, and the addition of capital work-in-progress. On the current assets front, the significant rise in trade receivables to ₹3,107.66 lakh indicates improved sales performance. Despite a decrease in inventories and short-term loans, overall current assets grew to ₹5,892.77 lakh, reflecting stronger operational liquidity.

Aeron Composite Limited Total Equity and Liablities Overview

As of March 31, 2023, Aeron Composite Limited's total liabilities and equity stood at ₹69,09.41 lakh, marking a notable increase from ₹60,63.23 lakh in the previous year. The company’s shareholders' funds saw a significant rise, primarily due to higher reserves and surplus, which increased to ₹23,82.45 lakh from ₹14,30.65 lakh. On the liabilities front, short-term borrowings grew to ₹1,078.71 lakh, reflecting increased operational funding needs, while long-term borrowings remained relatively stable. Despite a higher total current liabilities, the overall financial health shows substantial growth compared to the previous year.

Financial Performance of Aeron Composite Limited

In the fiscal year ending March 31, 2023, Aeron Composite Limited reported a substantial increase in total income to ₹18,199.26 lakh, up from ₹10,992.50 lakh in the previous year. Revenue from operations surged to ₹17,938.42 lakh from ₹10,833.53 lakh, reflecting significant growth in business activities. Additionally, other income rose to ₹260.84 lakh compared to ₹158.98 lakh, contributing to the overall rise in total income. This performance underscores a strong upward trend in the company's financial results.

Expenses Breakdown for Aeron Composite Limited

In the fiscal year ending March 31, 2023, Aeron Composite Limited's total expenses reached ₹17,242.45 lakh, compared to ₹10,490.58 lakh the previous year. The primary contributor to this increase was the cost of materials consumed, which rose significantly to ₹12,207.24 lakh from ₹8,195.35 lakh. Changes in inventories showed a positive adjustment of ₹276.06 lakh, reversing the previous year's decline. Employee benefits expense surged to ₹1,149.65 lakh, and other expenses increased to ₹3,287.62 lakh. Despite a slight decrease in depreciation and amortisation expenses to ₹162.27 lakh, overall expenses grew in line with the company's expanded operations.

Profit and Tax Overview for Aeron Composite Limited

For the year ending March 31, 2023, Aeron Composite Limited reported a significant increase in profit before tax to ₹9,615.81 lakh from ₹4,991.92 lakh. After accounting for tax expenses, which included a current tax of ₹313.00 lakh and a deferred tax adjustment of (₹17.19) lakh, the profit for the period from continuing operations amounted to ₹295.81 lakh, up from ₹139.27 lakh the previous year. This reflects improved operational performance and effective tax management.

Cash Flow Overview for Aeron Composite Limited

For the year ending March 31, 2023, Aeron Composite Limited saw a notable improvement in its cash position. Cash and cash equivalents increased to ₹190.66 lakh from ₹41.78 lakh at the beginning of the year, marking a net increase of ₹148.88 lakh. This positive change contrasts with the previous year's decrease of ₹81.13 lakh, reflecting enhanced liquidity and stronger cash flow management.

AI Perspective on Aeron Composite Limited's Financials and Industry Growth

Aeron Composite Limited demonstrates strong financial growth, reflecting its expanding footprint in the composite materials industry. With revenue increasing significantly from ₹10,833.53 lakh in FY 2022 to ₹17,938.42 lakh in FY 2023, the company is clearly capitalizing on market opportunities. The notable rise in profits before tax from ₹4,991.92 lakh to ₹9,615.81 lakh highlights its successful business strategies and efficient cost management.

The composite materials industry, especially FRP/GRP, is on a positive growth trajectory. As infrastructure needs evolve, the demand for durable, lightweight, and corrosion-resistant materials increases. Aeron's focus on green, low-maintenance solutions positions it well to meet these needs across various sectors, including water management and transportation.

Overall, Aeron's financials reflect robust growth, and the broader industry outlook remains promising. Continued innovation and expansion, like their planned Composite City, will likely enhance their market position and financial performance further.