Indo Farm Equipment Limited - IPO

1. Fully Integrated and established Manufacturing Setup.

2. Well educated and experienced management.

3. In-house NBFC Setup.

4. Manufacturing Wide Range of Products.

1. We derive a significant portion of our revenue from the sale of tractors (approximately 52.16%) & Pick & Carry cranes (Approximately 47.77%) during the Fiscal 2024 and any reduction in demand or in the manufacturing of such products could have an adverse effect on our business, results of operations and financial condition.

2. If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.

3. Our proposed expansion plans w.r.t our new manufacturing facilities being set up are subject to the risk of unanticipated delays in implementation and cost overruns.

4. Average Capacity utilization for FY 2022 to FY 2024 is 32% for tractors and 87% for cranes. Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.

5. We have not yet placed orders in relation to the capital expenditure to be incurred for the proposed expansion project. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the machines and equipments in a timely manner, or at all, may result in time and cost over-runs and our business, prospects and results of operations may be adversely affected.

6. The capacity expansion for the manufacturing of Pick & Carry cranes is based on the expected domestic demand in India, with no confirmed order book for the additional production, and our sales are concentrated primarily in India, making us vulnerable to market fluctuations, regulatory changes, and economic downturns.

7. We have recorded low growth in Revenue and PAT margins in the last three Fiscals of our Company and our Subsidiary. Our PAT Margin for the quarter ended June 30, 2024, for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were 3.27%, 4.16%, 4.15% and 3.90% respectively.

8. Our ability to sell tractors is heavily dependent on financing support from Banks, NBFCs, and our subsidiary NBFC, which exposes us to risks related to financing availability, regulatory compliance, and operational performance of our subsidiary NBFC.

9. Our Company, its Promoters, its Directors, and our Subsidiary are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.

10. The geographical concentration of our manufacturing facilities in Himachal Pradesh may restrict our operations and adversely affect our business and financial conditions.