Revenue and Profit Trends
Over the three fiscal years ending March 2025, Afcons Infrastructure’s net sales have remained relatively stable, with ₹12,548.42 crores recorded in March 2025, slightly down from ₹13,267.50 crores in March 2024. The total operating income mirrored this trend, reflecting the company’s core business strength. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income hovered around ₹1,355.96 crores in March 2025, maintaining a margin of approximately 10.8%, which is a modest improvement from previous years.
Other income contributed significantly to the operating profit, rising to ₹474.35 crores in the latest fiscal year, which helped push the overall operating profit (PBDIT) to ₹1,830.31 crores. Despite an increase in interest expenses to ₹629.20 crores, the company managed to improve its profit before tax to ₹710.01 crores, up from ₹672.62 crores the year before. The profit after tax also showed a positive trajectory, reaching ₹486.79 crores in March 2025, reflecting a PAT margin of 3.88%, up from 3.39% in the previous year.
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Cost Structure and Margins
The company’s expenditure profile reveals a reduction in raw material costs from ₹4,012.48 crores in March 2024 to ₹3,290.14 crores in March 2025, which helped contain overall expenses. Employee costs have increased moderately, reflecting possible workforce expansion or wage inflation. Manufacturing expenses remained largely stable, while other expenses saw a slight rise. These factors combined to keep total expenditure excluding depreciation at ₹11,192.46 crores in the latest fiscal year, down from ₹11,902.47 crores the year prior.
Operating profit margins have shown resilience, with a slight uptick in the latest year, indicating effective cost management despite revenue pressures. The gross profit margin improved to 9.57% in March 2025, up from 8.8% the previous year, signalling better operational efficiency.
Balance Sheet Strength and Asset Base
Afcons Infrastructure’s balance sheet has strengthened notably over the years. Shareholders’ funds increased substantially to ₹5,260.52 crores in March 2025 from ₹3,595.95 crores in March 2024, supported by rising reserves. The company’s total assets grew to ₹17,119.22 crores, reflecting ongoing investments and asset accumulation.
Long-term borrowings remained stable at around ₹595 crores, while short-term borrowings decreased slightly compared to the previous year. The net block of fixed assets rose steadily, indicating continued capital expenditure and asset enhancement. Current assets also expanded, with cash and bank balances improving to ₹770.56 crores, providing liquidity support.
Cash Flow and Financial Health
Cash flow from operating activities experienced a downturn in March 2025, registering a negative ₹132 crores, a reversal from positive cash flows in prior years. This was largely due to significant changes in working capital, which saw an outflow of ₹1,522 crores. Despite this, the company maintained positive net cash inflow of ₹26 crores for the year, supported by financing activities that contributed ₹289 crores and controlled investing outflows.
Profit before tax has shown a steady increase over the past six years, rising from ₹290 crores in March 2021 to ₹710 crores in March 2025, underscoring the company’s improving profitability trajectory. Earnings per share (EPS) stabilised around ₹13.24 in March 2025, after adjustments for equity changes in prior years.
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Summary of Historical Performance
In summary, Afcons Infrastructure has maintained a steady revenue base with slight fluctuations, while improving profitability margins and strengthening its balance sheet over recent years. The company’s ability to manage costs effectively and generate consistent profits before tax highlights operational stability. However, the recent negative cash flow from operations due to working capital changes warrants attention for liquidity management going forward.
With growing reserves and shareholder funds, alongside controlled debt levels, Afcons Infrastructure appears well-positioned to sustain its business operations and capital investments. Investors should monitor cash flow trends and margin sustainability as key indicators of future performance.
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