Electrotherm (India) Limited, an ISO 9001:2015 certified, public limited company, was founded in 1983. Initially established to cater to the needs of the steel industry, foundries, and heat treatment industry, the company has evolved into a well-diversified conglomerate.
Today, Electrotherm operates across multiple business segments including Engineering & Technologies (catering to steel and foundry industries), transformer manufacturing, steel making, ductile iron pipe making, manufacturing of battery-operated vehicles, renewable energy, transmission line tower production, and education. The company has established itself as a prominent player in the Indian industrial landscape, serving sectors such as steel, foundry, automotive, and renewable energy.
Electrotherm operates through three primary segments: Engineering & Technologies, Special Steel, and Electric Vehicle.
The Engineering & Technologies (E&T) division is a leading designer and manufacturer of critical equipment for steel plants, foundries, and heat treatment industries. Its product portfolio includes:
- Induction Melting Furnaces
- Electric Arc Furnaces
- Metal Refining Konverters (AOD)
- Electrotherm Refining Furnaces (patented for design & process)
- High-Speed Continuous Casting Machines
- Power Distribution and Furnace Transformers
- Induction Heating and Hardening equipment
The E&T division is renowned for providing comprehensive, end-to-end solutions for steel production, from raw materials to finished products. It is the most preferred mini steel plant maker for capacities up to 1 million tons per year, offering sturdy and highly efficient plant and machinery alongside outstanding pre- and post-sales services globally.
This division focuses on the manufacturing of various steel products and related components, including:
- TMT bars
- Ductile Iron Pipes
- Sponge and Pig Iron
- Ferrous and Non-ferrous billets/bars/ingots
- Transmission Line Towers
The division's manufacturing capabilities encompass blast furnaces, sponge iron kilns, induction furnaces, rolling mills, ladle refining furnaces, and pipe making facilities, contributing substantially to the company's revenue.
Electrotherm has diversified into the electric vehicle segment, positioning itself as a manufacturer of battery-operated vehicles. This segment reflects the company's strategic expansion into future mobility solutions.
Incorporated in 1983, Electrotherm (India) Limited holds a significant global presence in the metal melting industry, commanding a 3.5 Lacs KW (3,500,000 KW) market share globally. Within India, the company maintains a dominant position with over 65% market share in induction melting equipment used by the steelmaking industry.
This strong market leadership underscores the company's technological expertise, continuous engineering innovations, and high customer trust. With a focused team of 5,500 employees and state-of-the-art manufacturing facilities, Electrotherm is a multi-divisional global company.
The company's financial performance shows strong profitability growth despite a slight decline in sales for the recent periods.
Q4 FY2024-25 Performance (Ended March 2025):
- Net Profit: ₹185.50 crore (up 78.31% from ₹104.03 crore in Q4 FY22-23)
- Sales: ₹1,161.08 crore (down 4.64% from ₹1,217.57 crore in Q4 FY22-23)
FY2024-25 Performance:
- Net Profit: ₹442.15 crore (up 39.33% from ₹317.33 crore in FY2023-24)
- Sales: ₹4,115.37 crore (down 3.66% from ₹4,271.50 crore in FY2023-24)
- Market Capitalization: ₹1,401.96 Crore
- P/E Ratio: 3.17
- P/B Ratio: -1.79
- 52-Week Range: High ₹1,455, Low ₹655
On November 13, 2024, the Board of Electrotherm (India) approved the appointment of Harish Mukati as the Chief Executive Officer (CEO) of the Steel Division, effective November 14, 2024. This strategic appointment aims to strengthen the leadership and focus on the company's steel operations.
Electrotherm boasts state-of-the-art manufacturing facilities where major critical customized parts are produced in-house under stringent quality control. Finished products undergo rigorous testing to ensure adherence to laid-out quality parameters. The company adheres to a Just-In-Time (JIT) delivery management principle, which helps prevent customer installation and operational cost overruns, ensuring timely project completion and aiming for zero downtime objectives for installed equipment.
Sustainable development is an integral part of Electrotherm's business model. The company has diversified into renewable energy solutions, providing solar photovoltaic rooftop and ground-mounted solutions to industrial and commercial sectors. This commitment to sustainability aligns with global environmental goals and presents additional growth avenues.
Electrotherm (India) Ltd (ELECTHERM) belongs to the Materials sector and Iron & Steel sub-sector. The company has demonstrated strong profitability improvements, with a significant year-over-year growth in net profit, including an impressive 176% CAGR over the last five years. However, sales growth has been modest, at 5.08% over the past five years, with recent declines.
The stock trades at relatively low valuations, with a P/E ratio of 3.17, which might suggest a value opportunity for investors. However, the negative price-to-book (P/B) ratio warrants careful consideration and further due diligence. The company's diversified business model across engineering technology, steel manufacturing, and electric vehicles provides multiple revenue streams and growth opportunities within India's expanding industrial sector.
