Table of content
Trom Industries Limited Introduction
Trom Industries Limited is a prominent player in the solar energy sector, specializing in Engineering, Procurement, and Construction (EPC) services. Established in 2011, the company is dedicated to providing innovative and sustainable solar solutions across various domains, including residential, commercial, and industrial projects.
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Brief about Trom Industries Limited
Summary of the business of Trom Industries Limited
Trom Industries Limited is a Solar EPC (Engineering, Procurement, and Construction) Company specializing in residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights. Trom is engaged in the comprehensive development of diverse solar projects. For residential rooftop installations, Trom designs and implements solar systems tailored to individual homes. In the industrial sector, Company scales up operations to design and construct larger solar power plants catering to industrial needs. Ground-mounted solar power plants involve the development of solar arrays on open land. Additionally, Company extends our services to include the Supply and Installation of solar street lights for public and commercial areas. Business encompasses engineering design, procurement of materials, on-site construction, project management, and adherence to regulatory standards across various sectors.
History
Company was originally formed as Partnership Firm under the name and style of “Trom Solar” on August 08, 2011, bearing Firm Registration No. GUJGND00921. Company was converted into public limited company pursuant to a resolution passed in the meeting of the partners held on April 10, 2019, and name of Company was changed to “Trom Industries Limited” and pursuant to the provisions of sub-section (2) of section 7 of the Companies Act, 2013 (18 of 2013) and rule 18 of the Companies (Incorporation) Rules, 2014 and a fresh Certificate of Incorporation dated August 01, 2019, was issued by Registrar of Companies, Central Registration Centre. The Corporate Identity Number of Company is U29309GJ2019PLC109376.
Jignesh Patel, Pankaj Pawar, Nimeshkumar Patel, Parth Thakkar, Satishkumar Patel, Suhaskumar Parmar and Tushar Gosaiwere the initial subscribers to the Memorandum of Association of our Company.
Trom Industries Limited is a Solar EPC (Engineering, Procurement, and Construction) Company specializing in residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights. Trom is engaged in the comprehensive development of diverse solar projects. For residential rooftop installations, Trom designs and implements solar systems tailored to individual homes. In the industrial sector, our Company scales up our operations to design and construct larger solar power plants catering to industrial needs. Ground-mounted solar power plants involve the development of solar arrays on open land. Additionally, our Company extends our services to include the Supply and Installation of solar street lights for public and commercial areas. Our business encompasses engineering design, procurement of materials, on-site construction, project management, and adherence to regulatory standards across various sectors.
Promoters & Board of Directors Trom Industries Limited
- Promoters of Company are Jignesh Patel and Pankaj Pawar.
Board of directors of Trom Industries Limited
| Name | Designation |
| Jignesh Patel | Chairman cum Managing Director |
| Pankaj Pawar | Executive Director |
| Amrutbhai Gopalbhai Patel | Non-Executive Director |
| Jitendra Pradipbhai Parmar | Independent Director |
| Drashtiben Prafulbhai Dedaniya | Independent Director |
| Aishwarya Surendra Singhvi | Independent Director |
Share Holding pattern of Trom Industries Limited
| Sr. No | Names | Pre-Issue % Shares Held | Post-Issue % Shares Held* |
| Promoters | |||
| 1. | Jignesh Patel | 49.22 | 34.62% |
| 2. | Pankaj Pawar | 48.84 | 34.35% |
| Sub Total (A) | 98.06% | 68.97% | |
| Promoter Group | |||
| 1. | Mrs. Gomtiben Patel | 0.39 | 0.27% |
| 2. | Mrs. Priyanka Pawar | 0.39 | 0.27% |
| Sub Total (B) | 0.78% | 0.55% | |
| Public | 1.16% | 30.48% | |
Qualitative Factors
- Wide Range of Products.
- Strong relationship with customers and suppliers.
- Experienced management team with industry expertise.
Strategy
- Improve Domestic Presence
- Leveraging our market skills and relationship
- Optimal Utilization of Resources
- Customer Satisfaction
Industry Outlook
The global solar power market size was valued at US$ 197.23 billion in 2021 and is expected to hit around US$ 368.63 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 7.2% during the forecast period 2021 to 2030.
Indian Industry Outlook
India’s energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India’s announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020. Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 15.92% between FY16-22. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double.
With the increased support of the Government and improved economics, the sector has become attractive from an investor’s perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.
Market Size
As of October 2022, India’s installed renewable energy capacity (including hydro) stood at 165.94 GW,
representing 40.6% of the overall installed power capacity.
The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60%) is expected from solar.
The non-hydro renewable energy capacity addition stood at 4.2 GW for the first three months of FY23 against 2.6 GW for the first three months of FY22.
Solar power installed capacity has increased by more than 18 times, from 2.63 GW in March 2014 to 49.3 GW at the end of 2021. In 2022, till November, India has added 12 GW of solar power capacity.
Power generation from renewable energy sources (not including hydro) stood at 16.18 billion units (BU) in September 2022, up from 14.49 BU in September 2021.
With a potential capacity of 363 GW and with policies focused on the renewable energy sector, Northern India is expected to become the hub for renewable energy in India.
Investments/ Developments
According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in the Indian non-conventional energy sector stood at US$ 12.57 billion between April 2000-June 2022. More than Rs. 5.2 lakh crore (US$ 70 billion) has been invested in India’s renewable energy sector since 2014. According to the analytics firm British Business Energy, India ranked 3rd globally in terms of its renewable energy investments and plans in 2020.
Some major investments and developments in the Indian renewable energy sector are as follows:
- US$ 2.4 billion National Hydrogen Mission for production of 5 MMT by 2030 and US$ 36 million additional in budget.
- 59 solar parks of aggregate capacity 40 GW have been approved in India.
- Solar Parks in Pavagada (2 GW), Kurnool (1 GW) and Bhadla-II (648 MW) included in top 5 operational solar parks of 7 GW capacity in the country.
- The world’s largest renewable energy park of 30 GW capacity solar-wind hybrid project is under installation in Gujarat.
- India offers a great opportunity for investments in RE sector; $196.98 Bn worth of projects underway in India.
- Wind Energy has an offshore target of 30 GW by 2030 with three potential sites identified.
- In August 2022, Norfund, who manage the Norwegian Climate Investment Fund, and KLP, Norway’s biggest pension company, signed an agreement to buy a 49% share of a 420 MW solar power plant in Rajasthan for Rs. 2.8 billion (US$ 35.05 million).
- India has generated 47.64 BU of solar power in the first half of 2022, a 34% YoY increase.
- Investment in renewable energy in India reached a record US$ 14.5 billion in FY22, an increase of 125% over FY21.
- Delhi’s Indira Gandhi International Airport (IGIA) has become the first Indian airport to run entirely on hydro and solar power. Around 6% of the airport’s electricity requirement is met from the onsite solar power plants.
- Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable energy projects totaling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore (US$ 1.53 billion) in Karnataka.
- India ranked third on the EY Renewable Energy Country Attractive Index 2021.
- In February 2022, Creduce Technologies-HCPL JV announced winning the bid for India’s single largest hydro power carbon credits project with Satluj Jal Vidyut Nigam, which will create more than 80 million carbon credits. In February 2022, Husk Power Systems, a renewable energy company working towards rural electrification, secured a US$ 4.2 million loan from the Indian Renewable Energy Development Agency (IREDA).
- In December 2021, India’s largest energy provider, Tata Power, was awarded a contract by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to set up a 300 MW wind-solar hybrid power plant.
- In October 2021, Reliance New Energy Solar Ltd. (RNESL) announced two acquisitions to build more capabilities. Both acquisitions – REC Solar Holdings AS (REC Group), a Norway-based firm, and Sterling & Wilson Solar, based in India – exceeded US$ 1 billion and are expected to contribute to Reliance’s target of achieving the capacity of 100 GW of solar energy at Jamnagar by 2030.
- In October 2021, Adani Green Energy Ltd. (AGEL) acquired SB Energy India for US$ 3.5 billion to strengthen its position in the renewable energy sector in India.
- In August 2021, Copenhagen Infrastructure Partners (CIP) signed an investment agreement with Amp Energy India Private Limited to facilitate joint equity investments of US$ 200 million across Indian renewable energy projects. 115
- In July 2021, National Thermal Power Corporation Renewable Energy Ltd. (NTPC REL), NTPC’s fully owned subsidiary, sent out a tender to domestic manufacturers to build India’s first green hydrogen fueling station in Leh, Ladakh.
- The NTPC is expected to commission India’s largest floating solar power plant in Ramagundam, Telangana by May-June 2022. The expected total installed capacity is 447MW.
- The Solar Energy Corporation of India (SECI) implemented large-scale central auctions for solar parks and has awarded contracts for 47 parks with over 25 GW of combined capacity.
Road Ahead
India has set a target to reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, achieve 50% cumulative electric power installed by 2030 from renewables, and achieve net-zero carbon emissions by 2070. Low-carbon technologies could create a market worth up to $80 billion in India by 2030.
India’s target is to produce five million tonnes of green hydrogen by 2030. The Green Hydrogen target is set at India’s electrolyser manufacturing capacity is projected to reach 8 GW per year by 2025. The cumulative value of the green hydrogen market in India could reach $8 Bn by 2030 and India will require at least 50 gigawatts (GW) of electrolysers or more to ramp up hydrogen production.
India’s ambitious renewable energy goals are transforming its power sector. The rising population and widespread electrification in rural homes are fueling the demand for energy to power homes, businesses and communities. Clean energy will reduce pollution levels as villages become self-sustainable with their use of clean energy. In 2022, India’s renewable energy sector is expected to boom with a likely investment of US$ 15 billion this year, as the government focuses on electric vehicles, green hydrogen, and the manufacturing of solar equipment.
It is expected that by 2040, around 49% of the total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. Use of renewables in place of coal will save India Rs. 54,000 crore (US$ 8.43 billion) annually. Around 15,000 MW of wind-solar hybrid capacity is expected to be added between 2020-25.
As per the Central Electricity Authority (CEA) estimates, by 2029-30, the share of renewable energy generation would increase from 18% to 44%, while that of thermal is expected to reduce from 78% to 52%. The CEA also estimates India’s power requirement to grow to reach 817 GW by 2030. (References: Central Electricity Authority, Ministry of New and Renewable Energy, Media Reports, Press Releases).
Business Data
Verticals
- Solar products
- AC LED light
Product wise break-up
(₹ in Lakhs)
| Name of Product | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| ₹ | % | ₹ | % | ₹ | % | |
| Solar Product | 2,025.91 | 37.28% | 1615.79 | 67.29% | 2,274.16 | 75.03% |
| AC LED LIGHT | 164.53 | 3.02% | 106.83 | 4.44% | 71.68 | 2.37% |
| Installation Services | 871.55 | 16.04% | 373.63 | 15.56% | 485.72 | 16.03% |
| Footwear Supply | 216.61 | 3.99% | 126.69 | 5.28% | – | – |
| Trading Activities | 2,156.28 | 39.67% | 178.32 | 7.43% | 199.27 | 6.57% |
| Total | 5,434.88 | 100.00% | 2,401.26 | 100.00% | 3,030.85 | 100.00% |
(₹ in Lakhs)
| Name of Party | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| ₹ | % | ₹ | % | ₹ | % | |
| Revenue generated from Government Tender | 300.69 | 5.53% | 664.70 | 27.68% | 1,010.49 | 33.34% |
| Revenue generated from Residential | 364.52 | 6.71% | 220.64 | 9.19% | 973.09 | 32.11% |
| Revenue generated from Commercial and industrial Project | 2,396.79 | 44.10% | 1,210.92 | 50.43% | 848.00 | 27.98% |
| Revenue generated from Footwear supply | 216.61 | 3.99% | 126.69 | 5.28% | – | – |
| Revenue generated from Trading of Solar Module | 1,765.47 | 32.48% | 90.80 | 3.78% | 54.54 | 1.80% |
| Revenue generated from Trading of Solar Inverter | 203.10 | 3.74% | 3.74 | 0.16% | 58.23 | 1.92% |
| Revenue generated from Other trading Activities | 187.71 | 3.45% | 83.78 | 3.49% | 86.50 | 2.85% |
| Total | 5,434.88 | 100.00% | 2,401.26 | 100.00% | 3,030.85 | 100.00% |
Revenue contribution from Geography presence
(₹ in lakhs)
| Name of States | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| ₹ | % | ₹ | % | ₹ | % | |
| Gujarat | 5,341.93 | 98.290% | 2,197.67 | 91.521% | 1,938.72 | 63.966% |
| Rajasthan | – | – | 202.69 | 8.441% | 1,091.26 | 36.055% |
| Maharashtra | 0.96 | 0.018% | 0.90 | 0.038% | 0.87 | 0.029% |
| Delhi | 91.85 | 1.690% | – | – | – | – |
| Madhya Pradesh | 0.15 | 0.003% | – | – | – | – |
| Total | 5,434.88 | 100.000% | 2,401.26 | 100.000% | 3,030.85 | 100.000% |
Customer dependency
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Top 1 | 15.19% | 15.89% | 28.89% |
| Top 3 | 37.47% | 35.52% | 46.86% |
| Top 5 | 49.47% | 46.23% | 51.02% |
| Top 10 | 67.00% | 60.62% | 57.17% |
Supplier dependency
(₹ in lakhs)
| Name of Product | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| ₹ | % | ₹ | % | ₹ | % | |
| Top 10 suppliers | 3,687.23 | 77.28 | 1,421.22 | 64.27 | 2,202.14 | 80.03 |
Competition
The industry segments in which Trom Industries Limited operate being diversified. Trom Industries Limited try to remain competitive by seeking to understand the markets in which Trom Industries Limited operate in better and identify emerging opportunities. Trom Industries Limited believe that consistent tracking of markets is a key to our competitiveness and these factors inter alia enable us to anticipate the needs of our customers.
Some of the large players in industry are Australian Premium Solar (India) Limited, K.P. Energy Limited, Zodiac Energy Limited which are in similar line of business segments is similar to ours. However, our position in the market is unique as we are pioneers in the segment of Solar, which forms a larger part of our business.
Peer companies comparison
| Name of the Company | CMP(₹) | Basic & Diluted EPS | RONW (%) | P/E Ratio | NAV(₹ per share) | Face value (₹ per share) | Total Income (₹ in lakhs) | Market Cap (₹ in lakhs) |
| Trom Industries Limited | 115 | 8.88 | 77.82 | 12.95 | 18.90 | 10/- | 5,434.88 | NA |
| Peer-Group | ||||||||
| Alpex Solar Limited | 901.75 | 14.12 | 20.28 | 63.86 | 53.50 | 10/- | 19,592.07 | 2,20,261.00 |
| Australian Premium Solar India Limited | 534.00 | 3.12 | 12.80 | 171.15 | 24.36 | 10/- | 9,495.86 | 1.06,596.00 |
| Solex Energy Limited | 1,504.75 | 10.92 | 18.89 | 137.79 | 57.80 | 10/- | 16,438.83 | 1,20,380.00 |
| Financial Details | Trom Industries Limited | Alpex Solar Limited | Australian Premium Solar (India) Limited | Solex Energy Limited | ||||||||
| March 31, 2024 | March 31, 2023 | March 31, 2022 | March 31, 2024 | March 31, 2023 | March 31, 2022 | March 31, 2024 | March 31, 2023 | March 31, 2022 | March 31, 2024 | March 31, 2023 | March 31, 2022 | |
| Revenue from Operations | 5,434.88 | 2,401.26 | 3,030.85 | 41,259.98 | 19,468.01 | 15,270.79 | 14,967.29 | 9,455.92 | 9,812.13 | 36,592.11 | 16,171.29 | 7,191.98 |
| Total Income | 5,454.68 | 2,413.80 | 3,056.55 | 41,350.96 | 19,592.07 | 15,606.91 | 15,031.51 | 9,495.86 | 9,822.32 | 36,801.53 | 16,438.83 | 7,229.36 |
| EBITDA | 830.11 | 1,924.09 | 19.91 | 3,785.57 | 1,269.71 | 655.38 | 934.28 | 586.87 | 534.14 | 2,841.35 | 1,132.32 | 185.61 |
| EBITDA Margin (in %) | 15.27 | 25.69 | 0.54 | 9.17 | 6.52 | 4.29 | 6.24 | 6.21 | 5.44 | 7.76 | 7 | 2.58 |
| Net Profit | 572.93 | 1,132.32 | -311.26 | 2,655.96 | 373.82 | 44.47 | 615.29 | 330.46 | 281.78 | 873.48 | 271.07 | 98.79 |
| Net Profit Margin (in %) | 10.54 | 15.12 | -8.45 | 6.43 | 1.92 | 0.29 | 4.11 | 3.5 | 2.87 | 2.39 | 1.68 | 1.37 |
| Return on Net Worth (in %) | 77.82% | 12.25% | 17.72% | 20.28 | 9 | 1.25 | 12.8 | 22.6 | 24.9 | 18.89 | 7.2 | 2.82 |
| Return on Capital Employed (in %) | 45.8 | 46.16 | -6.41 | 20.98 | 11.98 | 7.15 | 13.67 | 27.14 | 27.47 | 14.01 | 6.55 | 2.95 |
| Debt-Equity Ratio | 0.47 | 1.71 | 15.4 | 0.27 | 1.14 | 0.56 | 0.2 | 0.15 | 0.26 | 2.08 | 1.75 | 0.55 |
| Interest Coverage Ratio | 10.76 | 7.85 | -0.73 | 5.65 | 1.99 | 1.03 | 29.84 | 11.24 | 13.36 | 1.9 | 1.21 | 2.14 |
| Days Working Capital | 104.37 | 21.93 | 13.45 | 86.21 | 44.33 | 45.07 | 96.28 | 39.94 | 25.66 | 36.39 | 63.83 | 134.09 |
Business risk factors
- Trom Industries Limited revenues are highly dependent on our operations in geographical region of state of Gujarat. Any adverse development affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.
- Majority of Trom Industries Limited revenue is generated form Gujarat i.e., ₹5,341.93 lakhs, ₹2,197.67 lakhs and ₹1,938.72 lakhs which constituting 9829%, 91.52% and 63.97% of total revenue for operation for the year ended March 31, 2024, 2023 and 2022 respectively.
- Trom Industries Limited may continue to derive a material portion of our revenue from our top five customers and our financial dependence on our top five customer poses a potential risk. A reduction in business from these top five customers or any other major clients could have negative implications for both our revenue and profitability.
- Trom Industries Limited top five customers contribute 49.47%, 46.22%, and 51.02%of total revenue for operation the year ended March 31, 2024, 2023 and 2022 respectively.
- Trom Industries Limited face competition in Trom Industries Limited business from domestic competitors. Such competition would have an adverse impact on business and financial performance.
- Most of Trom Industries Limited revenue originally came from EPC models, however, recently most of revenue is generated from Trading.
- Several of Trom Industries Limited key raw materials and components are sourced from a limited group of third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair our ability to provide our services to customers at a price that is profitable to us, which could have a material adverse effect on our business, financial condition and results of operations.
Financials
Key Financial Ratios
| Particulars | 31 March 2024 | 31 March 2023 | 31 March 2022 | 31 March 2021 |
| Current Ratio | 2.16 | 1.34 | 1.13 | 1.18 |
| Debt-Equity Ratio | 0.47 | 1.97 | 0.39 | 1.24 |
| Debt Service Coverage Ratio | 3.04 | 0.67 | 1.27 | 0.84 |
| Return on Equity Ratio | 77.82% | 12.25% | 17.72% | 16.75% |
| Inventory Turnover Ratio | 7.38 | 12.76 | 33.03 | 26.03 |
| Trade Receivables Turnover Ratio | 4.47 | 2.01 | 2.69 | 2.13 |
| Trade Payables Turnover Ratio | 5.21 | 1.88 | 2.41 | 1.62 |
| Net Capital Turnover Ratio | 3.50 | 4.48 | 14.25 | 8.57 |
| Net Profit Ratio | 10.54% | 1.20% | 1.19% | 1.30% |
| Return on Capital Employed | 47.11% | 16.19% | 27.34% | 22.25% |
Key Performance Indicators
(₹ in lakhs except percentages and ratios)
| Particulars | March 31, 2024 | March 31,2023 | March 31, 2022 |
| Revenue from Operations | 5,434.88 | 2,401.26 | 3,030.85 |
| EBITDA | 830.11 | 129.90 | 93.44 |
| EBITDA margin (%) | 15.27 | 5.41 | 3.08 |
| ROCE (%) | 45.80 | 16.1 | 27.0 |
| PAT margin (%) | 10.54 | 1.20 | 1.19 |
| RoNW (%) | 77.82% | 12.25% | 17.72% |
| Debt-Equity Ratio | 0.47 | 1.97 | 0.39 |
| Interest Coverage Ratio | 10.76 | 1.50 | 2.39 |
| Days Working Capital | 104.37 | 81.54 | 25.61 |
Balance Sheet
(₹ in lakhs)
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| EQUITY AND LIABILITIES | |||
| Shareholders’ funds | 1,222.57 | 249.92 | 221.12 |
| Non-current liabilities | 357.36 | 314.56 | 21.77 |
| Current liabilities | 1,340.00 | 1,590.87 | 1,611.43 |
| Total Equity and Liabilities | 2,919.93 | 2,155.35 | 1,854.32 |
| ASSETS | |||
| Non-current assets | 25.89 | 28.03 | 30.18 |
| Current assets | 2,894.06 | 2,127.32 | 1,824.12 |
| Total Assets | 2,919.93 | 2,155.35 | 1,854.32 |
Profit & Loss
(₹ in lakhs)
| Particulars | March 31, 2024 | March 31,2023 | March 31, 2022 |
| Revenue from Operations | 5,434.88 | 2,401.26 | 3,030.85 |
| EBITDA | 830.11 | 129.90 | 93.44 |
| EBITDA margin (%) | 15.27 | 5.41 | 3.08 |
| Net Profit | 572.93 | 1,132.32 | -311.26 |
| ROCE (%) | 45.80 | 16.1 | 27.0 |
| PAT margin (%) | 10.54 | 1.20 | 1.19 |
Cash Flow
(₹ in lakhs)
| Particulars | March 31,2024 | March 31,2023 | March 31,2022 |
| Net cash (used in)/ Generated from operating activities | (370.83) | (226.50) | 71.78 |
| Net cash (used in)/ Generated from investing activities | 8.98 | (2.94) | 21.71 |
| Net cash (used in)/ Generated from finance activities | 366.35 | 212.93 | (129.83) |
| Net increase/ (decrease) in cash and cash equivalents | 4.50 | (16.51) | (36.33) |
| Cash and Cash Equivalents at the beginning of the period | 42.74 | 59.25 | 95.59 |
| Cash and Cash Equivalents at the end of period | 47.24 | 42.74 | 59.25 |
Capital structure
(₹ in lakhs, unless otherwise stated)
| Particular | Pre-Issue as on March 31, 2024 | Post Issue |
| Borrowings | ||
| Short Term debt | 216.35 | 216.35 |
| Long Term debt | 357.36 | 357.36 |
| Total Borrowings | 573.71 | 573.71 |
| Shareholder’s Fund | ||
| Equity Share Capital | 646.73 | 919.49 |
| Reserve and Surplus | 575.84 | 3,439.82 |
| Share Application Money | – | |
| Less: Deferred Tax Assets | (7.99) | (7.99) |
| Total Shareholder’s Fund | 1,214.58 | 4,351.32 |
| Total debt / shareholders’ funds | 0.47 | 0.13 |
| Long term debt / shareholders’ funds | 0.29 | 0.08 |
SWOT ANALYSIS
- Strengths
- Expertise in Solar Energy: Trom Industries has a strong foothold in the solar energy sector, with extensive experience in EPC services.
- Innovative Solutions: The company is known for its innovative and sustainable solar solutions, catering to residential, commercial, and industrial clients.
- Successful Project Execution: Trom Industries has a track record of successfully completing various projects, enhancing its reputation and reliability.
- Upcoming IPO: The planned IPO can provide significant capital to fuel further growth and expansion.
- Weaknesses
- Market Dependence: Heavy reliance on the solar energy market can be a risk if there are industry downturns or regulatory changes.
- Capital Intensive: Solar projects require substantial upfront investment, which can strain financial resources if not managed properly.
- Geographical Limitations: If the company operates primarily in specific regions, it may face limitations in market reach and diversification.
- Opportunities
- Growing Demand for Renewable Energy: Increasing global emphasis on renewable energy presents vast growth opportunities.
- Technological Advancements: Advancements in solar technology can lead to more efficient and cost-effective solutions, enhancing competitiveness.
- Government Incentives: Favorable government policies and incentives for renewable energy can boost business prospects.
- Expansion into New Markets: Exploring new geographical markets can diversify revenue streams and reduce dependency on specific regions.
- Threats
- Intense Competition: The solar energy sector is highly competitive, with many players vying for market share.
- Regulatory Changes: Changes in government policies or regulations can impact operations and profitability.
- Economic Fluctuations: Economic downturns can affect investment in solar projects and overall demand.
- Technological Disruptions: Rapid technological changes can render existing solutions obsolete, requiring continuous innovation.
IPO Details
Trom Industries Limited IPO Details
| Detail | Information |
|---|---|
| Issue Type | SME IPO |
| Issue Size | ₹31.37 Crore |
| Offer Type | Fresh Issue |
| Number of Shares | 2,727,600 Equity Shares |
| Face Value | ₹10 per share |
| Price Band | ₹100 – ₹115 per share |
| Minimum Lot Size | 1200 Shares |
| Issue Open Date | July 25, 2024 |
| Issue Close Date | July 29, 2024 |
| Listing Exchange | NSE SME |
Object of the issue
(₹ in lakhs)
| Particulars | Total Estimated Costs | Amount to be Financed from Net Proceeds | Ratio | Estimated utilization of Net Proceeds in FY 2025 | Estimated utilization of Net Proceeds inFY 2026 |
| Funding of capital expenditure requirements of our Company towards setup of Solar Power Plant | 1,800.28 | 450.00 | 25.00% | 450.00 | – |
| Working Capital Requirements | 1,652.56 | 1,652.56 | 100.00% | 1,000.00 | 652.56 |
Litigation involved
Gray Market Premium
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