Technocraft Industries Faces Tariff Headwinds in US Market, Domestic Formwork Business Remains Strong

2 min read     Updated on 14 Aug 2025, 05:20 PM
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Overview

Technocraft Industries reported stable Q1 results despite US tariff increases affecting its scaffolding business, with US sales declining 35% quarter-on-quarter. The scaffolding segment faces a 23% tariff, potentially rising to 34%. The formwork business (Mach One) showed robust growth, with expected revenue of INR 900 crores this fiscal year. The company is diversifying geographically to mitigate US market risks, exploring opportunities in Saudi Arabia, South America, and Japan. The textile division faces potential 50% tariffs on US exports. Management remains cautious about providing guidance for the scaffolding business due to evolving tariff situations.

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*this image is generated using AI for illustrative purposes only.

Technocraft Industries reported stable quarterly results for Q1, despite challenging market conditions driven by US tariff increases. The company's scaffolding business, which accounts for a significant portion of its revenue, faced headwinds with US sales declining approximately 35% quarter-on-quarter due to tariff-related demand disruptions.

Tariff Impact on Key Segments

The scaffolding segment, which contributes about 56% of the company's total segment revenue, is currently subject to a 23% tariff in the US. This could potentially rise to 34% if additional Russian-linked tariffs are implemented. The drum closure division faces even steeper tariffs, with current rates at 27.60% that could escalate to 52.60%.

Navneet Saraf, Director and CEO of Technocraft Industries, stated, "We are able to pass on the tariffs in the scaffolding segment. However, for drum closures, we have decided not to pass on any additional tariffs beyond the current 27.60% to maintain our competitive position against EU imports."

Formwork Business Shows Robust Growth

Despite challenges in the scaffolding segment, the company's formwork business (Mach One) showed robust performance. The new Aurangabad plant is operating at 75% capacity and is expected to reach 90-95% utilization in the coming months.

"We are confident of achieving INR 900.00 crores revenue from the Mach One business this fiscal year, up from INR 520.00 crores in the previous year," Saraf added. The company reported a strong order book of INR 350.00 crores for the formwork business, representing approximately 4 months of sales.

Diversification Strategy

To mitigate risks associated with the US market, Technocraft Industries is focusing on geographical diversification. The company is exploring opportunities in Saudi Arabia and South America for its scaffolding and formwork products. Additionally, it has recently started operations in Japan for its engineering services division.

Outlook

While the company maintains a positive outlook for its domestic formwork business, uncertainties remain regarding the scaffolding exports due to the evolving tariff situation in the US. The management indicated that the impact of these tariffs would be more evident in the coming quarters.

"It's difficult to provide guidance for the scaffolding part of the business at this point," Saraf noted. "The severity of the tariff impact will only be visible in the subsequent quarters."

The company's textile division is also facing significant challenges, with potential 50% tariffs on US exports threatening to halt sales to that market. Technocraft Industries is exploring manufacturing options outside India to mitigate this impact.

Despite these challenges, Technocraft Industries remains focused on leveraging its diversified product portfolio and geographical presence to navigate the current market turbulence.

Historical Stock Returns for Technocraft Industries

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Technocraft Industries Reports Strong Q4 Results, Announces ₹20 Dividend

1 min read     Updated on 29 May 2025, 06:43 PM
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Overview

Technocraft Industries released its Q4 financial results, showing significant growth across key metrics. Net profit increased by 20.20% to ₹660.00 crore, while revenue grew by 18.00% to ₹7,000.00 crore. EBITDA rose by 30.80% to ₹1,100.00 crore, with the EBITDA margin expanding to 15.71%. The company also announced a dividend of ₹20 per equity share.

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*this image is generated using AI for illustrative purposes only.

Technocraft Industries has released its fourth quarter financial results, showcasing robust growth across key metrics and announcing a significant dividend for shareholders.

Financial Performance

The company reported impressive year-over-year improvements in its consolidated financial results for Q4:

Metric Q4 (Current Year) Q4 (Previous Year) YoY Change
Net Profit ₹660.00 crore ₹549.00 crore 20.20%
Revenue ₹7,000.00 crore ₹5,930.00 crore 18.00%
EBITDA ₹1,100.00 crore ₹841.00 crore 30.80%
EBITDA Margin 15.71% 14.20% 1.51%

Technocraft Industries demonstrated strong financial performance in the fourth quarter, with significant improvements across all key financial indicators.

Net Profit and Revenue Growth

The company's consolidated net profit for Q4 increased to ₹660.00 crore, up from ₹549.00 crore in the same quarter of the previous year, representing a substantial 20.20% year-over-year growth. This growth was supported by a robust increase in revenue, which rose to ₹7,000.00 crore from ₹5,930.00 crore, marking an 18.00% year-over-year improvement.

EBITDA and Margin Expansion

Technocraft Industries also reported a notable improvement in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4. The EBITDA increased to ₹1,100.00 crore from ₹841.00 crore in the previous year, reflecting a significant 30.80% growth. This growth outpaced the revenue increase, resulting in an expansion of the EBITDA margin from 14.20% to 15.71%, indicating improved operational efficiency and profitability.

Dividend Announcement

In addition to the strong financial results, Technocraft Industries has recommended a dividend of ₹20 per equity share. This announcement is likely to be welcomed by shareholders, reflecting the company's commitment to delivering value to its investors.

The combination of robust financial performance and a substantial dividend announcement demonstrates Technocraft Industries' strong position in the market and its focus on shareholder returns. Investors and market analysts will likely be watching closely to see if the company can maintain this momentum in the coming quarters.

Historical Stock Returns for Technocraft Industries

1 Day5 Days1 Month6 Months1 Year5 Years
+2.53%-6.55%-8.59%-15.52%-31.81%+532.56%
Technocraft Industries
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