How has been the historical performance of ABM Knowledge?

Revenue and Operating Performance

Over the past seven years, ABM Knowledge’s net sales have shown a generally upward trend, rising from ₹60.84 crores in the fiscal year ending March 2019 to ₹96.67 crores in March 2025. Despite a dip in fiscal 2022, where sales declined to ₹95.60 crores from ₹79.74 crores in 2023, the company rebounded strongly in the latest fiscal year. This growth trajectory reflects the company’s ability to expand its market presence and adapt to changing business conditions.

Operating profit margins, excluding other income, have fluctuated but remained healthy, with a margin of 20.54% in the latest fiscal year. This is a slight improvement from 19.41% in the previous year, indicating enhanced operational efficiency. The gross profit margin also improved to 28.7%, underscoring effective cost management despite rising employee and manufacturing expenses.

Employee costs have steadily increased from ₹24.86 crores in 2019 to ₹49.91 crores in 2025, reflecting investment in human capital to support growth. Manufacturing expenses, after peaking in 2022, have moderated to ₹14.91 crores, contributing to improved profitability. Selling and distribution expenses have remained relatively stable, indicating controlled overheads.

Profitability and Earnings

ABM Knowledge’s operating profit (PBDIT) including other income has grown from ₹24.15 crores in 2019 to ₹28.04 crores in 2025, demonstrating steady earnings growth. Profit before tax has also increased from ₹22.17 crores to ₹24.02 crores over the same period. The company’s profit after tax rose from ₹15.25 crores in 2019 to ₹19.04 crores in 2025, although consolidated net profit has seen some volatility, peaking at ₹20.01 crores in 2021 before settling at ₹14.39 crores in 2025.

Earnings per share (EPS) have mirrored this trend, with a peak of 10.01 in 2021 and a current level of 7.2 in 2025. The PAT margin has remained robust, averaging around 17.69% in the latest fiscal year, reflecting the company’s ability to maintain profitability despite market fluctuations.

Interest expenses have been minimal and stable, averaging around ₹0.30 crores, indicating low leverage. Depreciation charges have gradually increased in line with asset growth but have not significantly impacted net profitability.

Balance Sheet and Financial Position

The company’s balance sheet reveals a strong equity base, with shareholder’s funds rising from ₹167.67 crores in 2020 to ₹234.58 crores in 2025. Total reserves have also increased steadily, supporting the company’s growth and providing a cushion against market uncertainties. Notably, ABM Knowledge carries no long-term or short-term borrowings, highlighting a debt-free status that enhances financial stability.

Assets have expanded consistently, with total assets increasing from ₹200.11 crores in 2020 to ₹280.87 crores in 2025. The net block of fixed assets has grown moderately, reflecting ongoing capital investment. Current assets, including substantial current investments and cash balances, have also increased, providing ample liquidity. Cash and bank balances have fluctuated but remain healthy at ₹28.08 crores in 2025.

Liabilities have risen in line with asset growth but remain manageable, with total liabilities at ₹280.87 crores in 2025. Contingent liabilities have decreased from ₹31.45 crores in 2023 to ₹19.89 crores in 2025, reducing potential off-balance-sheet risks.

Cash Flow and Liquidity

Cash flow from operating activities has shown improvement, rising from ₹11 crores in 2020 to ₹23 crores in 2025. This reflects stronger core business cash generation. However, cash flow from investing activities has been negative in recent years, indicating ongoing investments in growth and expansion. Financing activities have generally resulted in outflows, consistent with the company’s debt-free stance and possible dividend payments or share buybacks.

Net cash inflow was positive at ₹6 crores in 2025, a recovery from negative cash flows in prior years. The company’s closing cash and cash equivalents have increased to ₹13 crores, supporting operational flexibility and financial resilience.

Conclusion

ABM Knowledge’s historical performance reflects a company on a steady growth path with solid revenue expansion, consistent profitability, and a strong balance sheet free of debt. While earnings and net profit have experienced some fluctuations, the overall trend is positive, supported by prudent cost management and healthy cash flows. The company’s increasing reserves and shareholder funds further bolster its financial position, making it well-positioned for future opportunities and challenges in its sector.

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