VMS TMT IPO Upcoming
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About VMS TMT
Established in 2013 and headquartered in Bavla, Ahmedabad, Gujarat, VMS TMT Limited specializes in manufacturing Thermo Mechanically Treated (TMT) bars, a critical component in construction due to their strength and durability. Operating primarily within Gujarat, the company derives over 98% of its revenue from this region, catering to both retail and institutional clients. With an annual production capacity of 200,000 metric tonnes, VMS TMT produced approximately 160,321 MT in FY24. The company markets its products under the ‘Kamdhenu NXT’ brand through a network of distributors and dealers.
Financials of VMS TMT
*All figures are in ₹ Crores.
Strengths
- Annual production capacity of 200,000 MT with significant output in FY24.
- Over 98% of revenue is derived from operations in Gujarat, indicating market dominance in the region.
- Partnership with Kamdhenu Limited allows marketing under the ‘Kamdhenu NXT’ brand.
- Plans to produce billets in-house to reduce dependency on external suppliers.
Risks
- Heavy reliance on the Gujarat market may expose the company to regional economic fluctuations.
- Dependence on third-party suppliers for raw materials could affect production continuity.
- TMT bar prices are subject to fluctuations, impacting profitability.
- Outstanding borrowings amounted to ₹252.5 crore as of August 2024.
- Dependence on the Kamdhenu brand; termination of the licensing agreement could affect market presence.