Arfin India Ltd, a key player in the non-ferrous metals segment, has released its financial results for the June quarter of FY2025, reporting a consolidated net profit of ₹10.8 million and revenue from operations of ₹1.09 billion. While the company maintained steady top-line performance, profitability came under pressure due to rising input costs and subdued margins.
The results reflect a cautious start to the fiscal year for the Ahmedabad-based manufacturer, which specializes in aluminium products including wire rods, conductors, and alloy ingots used across power, automotive, and industrial sectors.
Financial Snapshot: June Quarter FY2025
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Revenue from Operations: ₹1.09 billion
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Consolidated Net Profit: ₹10.8 million
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Operating Profit Margin: Declined due to higher raw material costs
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PAT Margin: Narrowed to under 1%
The company’s revenue remained largely stable compared to previous quarters, supported by consistent demand from domestic infrastructure and utility sectors. However, the bottom line saw a sharp decline, with net profit falling from ₹30.1 million in the previous quarter to ₹10.8 million, indicating a drop of nearly 64%.
“The quarter was marked by volatility in aluminium prices and elevated energy costs, which impacted our margins. We remain focused on operational efficiency and product diversification to mitigate these pressures,” said a company spokesperson.
Sector Dynamics and Operational Challenges
Arfin India operates in a sector that is highly sensitive to global commodity price movements. Aluminium, being a traded metal, saw price fluctuations during the quarter due to geopolitical tensions, supply chain disruptions, and demand moderation in China.
Additionally, the company faced:
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Higher raw material procurement costs
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Increased freight and logistics expenses
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Currency volatility affecting export realizations
Despite these headwinds, Arfin India managed to maintain production volumes and meet client delivery schedules, which helped sustain revenue levels.
Market Reaction and Investor Sentiment
Following the earnings announcement, Arfin India’s stock traded flat, reflecting investor caution. The muted profit figures were largely in line with analyst expectations, given the macroeconomic backdrop and sectoral challenges.
The company’s shares are currently trading around ₹33.60 on the BSE, with a market capitalization categorized as micro-cap. Analysts suggest that while the short-term outlook remains constrained, the company’s long-term fundamentals are intact.
“Arfin India’s performance mirrors the broader challenges in the non-ferrous metals space. However, its consistent revenue and lean balance sheet offer resilience,” noted a report from MarketsMojo.
Strategic Focus and Future Outlook
Arfin India has been working on several strategic initiatives to improve profitability and reduce cost pressures:
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Exploring backward integration to secure raw material supply
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Investing in energy-efficient technologies to lower operational costs
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Expanding product lines to cater to high-margin industrial applications
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Strengthening export channels in Southeast Asia and the Middle East
The company is also evaluating partnerships and technology upgrades to enhance its manufacturing capabilities and reduce dependence on volatile commodity cycles.
Looking ahead, Arfin India expects demand to pick up in the second half of FY2025, driven by government infrastructure spending, rural electrification programs, and automotive sector recovery.
“We are optimistic about the medium-term outlook and are taking steps to ensure sustainable growth despite near-term margin pressures,” the company added.
Sources: Economic Times, MarketsMojo, Moneycontrol, Arfin India Official Investor Page
