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Business Profile: Spray Engineering Devices Limited

1. Core Business Description: Innovative Technological Solutions Provider

Spray Engineering Devices Limited (SEDL), along with its subsidiaries (the Group), is fundamentally an Innovative Technological Solutions provider. The Group’s business model centers on the manufacturing of equipment and the delivery of highly specialized engineering services.

The business activities are consolidated into a single operating segment: Process and project engineering equipment. The Group operates on a global scale, catering to both domestic and international markets.

Areas of Specialization: The Group focuses heavily on highly technical process engineering related to:

• Vaporization

• Condensation

• Evaporation

• Heat Exchange

• Crystallization

• Sugar Refining

The Group also provides specialized design and engineering services.

2. Products and Project Focus

SEDL’s products are primarily equipment solutions for two critical industrial sectors: the Sugar & Allied Industries and Zero Liquid Discharge (ZLD) solutions for Wastewater.

The Group is heavily invested in future-looking Research and Development (R&D) projects, demonstrating a commitment to enhancing operational efficiency and addressing regulatory needs. Development costs related to the following projects were capitalized during the year:

3. Group Structure and Subsidiaries

The consolidated financial statements include the results of Spray Engineering Devices Limited (the Parent Company) and its subsidiaries.

The financial information of one Associate, IPRO Sugar Engineering Private Limited, in which the Parent has an investment of ₹ 0.0025 Crore (INR 0.25 million), has not been considered in the consolidated financial statements as it is deemed immaterial to the Group.

4. Revenue Sources and Financial Performance (Consolidated FY 2024-25)

The Group’s total consolidated income for the year ended March 31, 2025, was ₹ 461.83 Crore (INR 4,618.26 million).

A. Core Operational Revenue (₹ 460.97 Crore)

Operational revenue is generated primarily through two core activities:

1. Sale of Products: This is the dominant revenue stream, contributing ₹ 435.51 Crore (INR 4,355.13 million).

2. Erection, Commissioning, and Related Services: Contributed ₹ 18.61 Crore (INR 186.09 million).

B. Other Revenue and Financial Metrics (₹ in Crore)

5. Recent Developments and Highlights

The fiscal year 2024-25 was characterized by significant capital activity, strategic R&D investment, and a notable decline in profitability.

Financial and Capital Structure

• Revenue and Profit Decline: The Group experienced a substantial reduction in performance. Revenue from operations dropped from ₹ 547.35 Crore to ₹ 460.97 Crore, and PAT decreased sharply from ₹ 53.16 Crore to ₹ 15.02 Crore.

• Capital Infusion: The Group received ₹ 67.01 Crore (INR 670.05 million) from the issue of shares during the year. This addition led to a significant increase in total equity.

• Improved Gearing: Due to the substantial increase in total equity, the Debt-Equity Ratio decreased from 0.61 to 0.39. However, the Return on Equity Ratio decreased dramatically from 54.75% to 9.15%.

• No Dividend: The Company has not declared or paid any dividend during the year.

Investment in Innovation and Assets

• R&D Capitalization: The Group capitalized significant development costs, totaling ₹ 12.91 Crore (INR 1,290.7 million, including 109.40 million intangible assets and 19.67 million CWIP) related to its specialized projects, indicating a strong focus on future product development.

• Asset Growth: The Group invested heavily in fixed assets, with cash flow showing ₹ 27.99 Crore (INR 279.86 million) spent on the purchase of Property, Plant & Equipment (PPE), Capital Work-in-Progress (CWIP), and Intangible Assets.