Atmastco Limited: Engineering Excellence, Growth Prospects, and Social Responsibility – A Comprehensive Q&A

CXOToday has engaged in an exclusive interview with Mr. Subramanian Swaminathan Iyer of Atmastco

Q: Can you tell our readers about Atmastco Limited?

Answer: Atmastco Limited was incorporated in 1988, and specialises in engineering procurement, and construction (EPC) projects in ferrous and non-ferrous sectors. We are now poised to become a technology solution provider for improving the efficiency of manufacturing plants of various leading companies. We are more than three decades old in this Industry and have a proven track record of delivering projects successfully for our clients in a very cost-effective manner across various industries. We have been consistently making profits. We also see a huge potential for our growth.

Q: Since you mentioned about growth potential, how do you think your company is positioned for that?

Answer: See, the Indian economy is growing at a rapid pace. We are already the fifth-largest economy in the world. There is an emphasis on developing the infrastructure in the country, especially in the Railways and transport sector. There are growing investments in New Refineries by State-run oil companies, and there is also demand for High Rise Residence & Commercial Buildings using steel materials. This will lead to a huge demand in the steel sector. The Make in India initiative of the government will add to the growing demand. Therefore, we see a huge opportunity for our company.

Q: As an SME how do you think you can grow with huge competition?

Answer: We may be an SME based on the definitions of SME. As I said earlier, we have a proven track record of more than three decades for delivering to some major clientele from Railways to infrastructure giants like NTPC and also to big companies like BHEL, Tata Steel, etc., for whom we have completed many important projects. So, with our experience, and commitment to quality delivery in the utmost time-bound and cost-effective manner, putting customer interests above all, I am sure that we can deliver. We have one of the largest installed capacities in the country. So, with the demand going northwards, I am sure that the trajectory of our growth is going to be upward.

Q: Any other sector in which you are interested?

Answer: I am happy to share with you that our fully owned subsidiary has received a license to manufacture bulletproof helmets for the defence personnel. We are only the third company in the country to obtain such a license. The license is obtained only after undergoing strict processes in terms of quality, endurance, etc. So, I would like to say that it is our own contribution to Atma Nirbhar Bharat in the defence sector. The production is likely to start within a few months in the next financial year. Therefore, we are very bullish in the defence sector as well.

Q: What is the purpose of the present IPO?

Answer: We have projects worth about more than 700 crores in the pipeline. This is only going to increase in the coming months. Therefore, we have a huge requirement for working capital. We are coming out with this IPO to primarily fund our working capital requirements. The proceeds of the IPO will also be used to pay back some of our loans. I would like to add here that our working capital requirements are funded by internal accruals and bank loans, and IPO proceeds will be an added or additional source to the funding of working capital.

Q: Can you give us a sense of the size of the IPO?

Answer: The IPO, which will be available for subscription this month, will have a mix of Offer for Sale (OFS) plus fresh issue of shares. So, the total offer is 73,05,600 Equity Shares of which the OFS portion will be 18,25,600 equity shares and fresh issue of 54,80,000 equity shares. As I mentioned earlier, the IPO will open for subscription this month. The company will be listed on the National Stock Exchange in NSE Emerge. The Draft Prospectus has already been filed with NSE.

Q: Can you give some details of your finances?

Answer: We have been making profits consistently year after year. The Profit after Tax (PAT) saw an increase of over 271% in 2022-23 over 2021-22 (Rs.3.23 crore to 12 crore). We saw a phenomenal increase of over 156% in turnover in FY 22-23 compared to FY21-22, i.e., from Rs 94 crore to Rs. 242 crores. We have ongoing projects worth more than Rs.700 crores.

Q: You mentioned that you have one of the largest installed capacities in the country. So obviously your plants will be large. How are you addressing the environmental concerns?

Answer: We are more into fabrication in the plants. Some of our machineries are imported from countries like Germany, Italy, Dubai, etc. There is hardly any pollution created by our plants. We have a cutting-edge 800+ KW rooftop solar power plant installed across our two units. Harnessing renewable energy, we’re dedicated to offsetting our carbon footprint. More than 70% of our power requirements are met from the solar power plant. We have a sprawling 20-acre plantation focused on cultivating a variety of fruits and vegetables in our unit in Bhilai.

Q: Having talked about the environment, can you throw some light on your Social and Governance initiatives?

Answer: We have a host of CSR activities like conducting blood camps, etc. On Corporate Governance, I am happy to say that we have effective CG practices. We have two independent directors and a woman director on our Board. We have an Audit Committee, Nomination and Remuneration Committee, etc. headed by Independent Directors. Various policies approved by our Board like RPT policy, Board Diversity Policy, Nomination and Remuneration Policy, etc. are already available on our website. So, we are highly committed to better ESG norms.

Q: You have completed many turnkey projects, some of them being very big projects. How do you ensure quality?

Answer: I am happy to mention that we maintain the utmost quality in our products. We are an ISO-certified company. We have obtained ZED from the Quality Council of India, perhaps the first company in Chhattisgarh to get such a recognition. I can say that all our clients have been fully satisfied with the quality of our products and services. We use imported machinery. We have exclusive tie-ups with foreign companies as well. We use the latest technology in our plants.

Q: How do you see your future prospects?

Answer: With our experience in the field of more than three decades and delivery of our services with cutting-edge technology, we have reputed large companies as our clients. Also, with the rising demand for infrastructure and emphasis on Make in India, we feel ourselves ideally positioned to fill in the shoes of a company that can deliver. We have already got an installed annual capacity of more than 24,000 Metric Tons. We still have scope for increasing the utilisation of the installed capacity. We are also very bullish on the defence sector, where our wholly owned subsidiary has got a special license for manufacturing helmets for defence personnel. We will also be shortly developing protection jackets for our personnel controlling riots. The uniqueness will be the jackets specially designed for use by women who are in such duty. We would also be looking at opportunities for exports. Moreover, we are embarking on becoming a Technology Solutions Provider and already have proven expertise in EPC projects in Ferrous and Non-Ferrous domains.