Announced Sat, 31 May · 21:44 IST

Investor presentation on for the financial year 2024-25

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedAnalyst Day Multiyear TargetsInvestor Communications View source PDF

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AI summary

Storage Technologies and Automation Ltd (branded Racks & Rollers) reported FY25 standalone revenue of ₹944.2 Mn, up 6.2% YoY, and crossed the ₹100 Cr mark on a consolidated basis at ₹1,003.8 Mn, up 7.1%. However, profitability weakened sharply — EBITDA margin contracted to 9.8% (standalone) and 9.7% (consolidated) from around 13.3% a year ago, dragged by one-time contractual staffing and machinery costs on a large project plus lower steel price realisations. Standalone PAT fell 36% YoY to ₹37.2 Mn and consolidated PAT dropped 33.6% to ₹40.5 Mn. Management has guided FY26 revenue of approximately ₹130 Cr, with EBITDA margin recovering to 11–13% and PAT margin to 6–7%, as the one-off project costs are not expected to recur. The company also targets a 20% revenue CAGR over the next five years with a steady-state EBITDA margin of 14–15%, supported by new sales offices in Delhi and Mumbai and the launch of an export vertical with initial orders secured from the UAE, Saudi Arabia, and Oman.

Likely market impact

Short-term sentiment may be weak due to the sharp YoY profit decline and margin compression, but the clear recovery guidance for FY26 and ambitious multi-year growth targets could support long-term investor interest. The expansion into exports and new sales offices are positive strategic moves, though execution and commodity price trends remain key risks to watch.