Walchand Inds

This 105 years old company has been in the limelight ever since the defence sector was opened up as the main focus of this heavy engineering company is defence. In FY14, the company had achieved a Rs.150 crore turnover in defence and over the next 3-4 years has set itself a target of Rs.1000 crore. The company, supplying components for nuclear submarine, missiles and other defence equipment is on the radar of many punters for the past couple of months.  The company has created a niche for itself, having ventured into making components of nuclear ships, especially nuclear gearboxes with 24,000-horse power. The company has partnered with Nuclear Power Corporation and DRDO to make nuclear shields and nuclear rings. Business through nuclear power comprises 12-14% of the company.

On the financial front, for its first quarter ended 31st Dec 2014 (year ending is 30th Sept), the company’s loss making trend continued. It ended the quarter with a net loss of Rs.26 crore compared to loss of Rs.33 crore in previous Q1. Net sales had shown a rise of 12% at Rs.162 crore but operating costs, led mainly by raw material costs pushed the company into the red, like always.

The hope in the company is that in the coming months it could see many orders coming its way. But for this optimism, given the consistent losses, it does not hold much steed. Equity capital is small at Rs.7.61 crore and promoters stake is at 55% with FIIs holding no stake – in fact they held 0.33% till end of Q4 and even that seems to have been sold off in Q1.