Investment & Precision Casting Ltd (IPCL) has reported a significant upturn in its business performance, driven by recent GST 2.0 amendments and substantial orders from key sectors. The company's communication to shareholders highlights several positive developments that are shaping its growth trajectory.

Business Performance Highlights

• Demand Surge: GST 2.0 amendments have triggered a notable increase in demand, reversing previous slowdown trends.
• Strong Orders: Significant orders from IWI and PLR have contributed to a robust performance.
• Fiscal Year Outlook: The company expects FY2024-25 to be considerably stronger than the previous year.
• Capacity Utilization: Currently operating at 50.00% of production capacity, indicating substantial room for growth.
• Sector-wise Growth: Robust growth observed across both auto and non-auto sectors.

Government Contracts and Expansion

IPCL has secured promising government contracts for the current and upcoming fiscal years, particularly benefiting the non-auto sector. This development aligns with the company's strategy to diversify its revenue streams and capitalize on government initiatives.

Defence and Aerospace Expansion

In a significant move towards diversification and high-value manufacturing, IPCL has expanded into the defence and aerospace sector:

• New Facility: Commissioned Plant 3, dedicated exclusively to defence and aerospace manufacturing.
• Strategic Positioning: This expansion positions IPCL to capture opportunities in these high-growth, high-precision sectors.

Operational Efficiency

The company's profitability is showing signs of improvement, attributed to:

• Favorable raw material prices
• Process optimization efforts
• Effective cost-cutting measures

Future Outlook

With its current capacity utilization at 50.00%, IPCL has significant headroom for expansion. The company appears well-positioned to capitalize on the growing demand across its various business segments, particularly in the auto, non-auto, and the newly entered defence and aerospace sectors.

Investment & Precision Castings' strategic moves, including capacity expansion and sector diversification, coupled with favorable market conditions stemming from regulatory changes, paint a promising picture for the company's near-term growth prospects. However, investors should continue to monitor the company's ability to execute its expansion plans and maintain profitability amidst changing market dynamics.

Investment & Precision Castings Limited (IPCL) has announced its unaudited financial results for the second quarter and half-year ended September 30, showcasing robust performance and strategic developments.

Financial Highlights

IPCL reported impressive financial results for Q2:

The company's performance shows significant year-on-year growth, with net profit nearly doubling compared to the same quarter last year.

Key Achievements and Market Outlook

IPCL has made notable strides in the aerospace and defense sectors:

• Developed aerospace-grade components recognized by Hindustan Aeronautics Limited (HAL).
• Received the SIDM Champions Award in both Defense and Aerospace categories, marking a milestone in technological excellence.

The company reports a resurgence in demand, supported by recent amendments under GST 2.0. This policy improvement has strengthened market sentiment and helped reverse the previous slowdown. IPCL has seen strong order inflows from defense sector customers, reinforcing its position in high-precision manufacturing.

Management expects robust growth momentum across both automotive and non-automotive sectors. The non-auto segment is particularly poised for expansion, backed by substantial orders linked to government and defense programs.

Operational Update

IPCL has invested in a solar plant, which is reflected in the movement of other current assets in the cash flow statement. Once operational, this plant is expected to positively influence cash flows, aligning with the company's ESG initiatives.

Board Changes

Mrs. Mamtadevi Raol, an Independent Director, will step down from her position effective January 12, 2026, upon completion of her five-year term. She has decided not to seek reappointment.

Company Overview

Established in 1975, IPCL is a pioneer in Lost-Wax Investment Castings in India. The company has an annual capacity of over 3,060 tons and caters to a diverse range of industries including automotive, aerospace, defense, and medical sectors. IPCL's manufacturing technologies include Lost Wax Investment Castings, Vacuum Investment Castings, and Rapid Prototyping.

IPCL's Chairman & Managing Director, Mr. Piyush I Tamboli, expressed appreciation to investors, customers, and employees for their continued confidence and commitment as the company progresses on its path of steady and sustainable growth.