Revenue Growth and Profitability Trends
Over the seven-year period ending March 2025, Ajooni Biotech's net sales have shown a robust increase, rising from ₹39.72 crores in March 2019 to ₹114.69 crores in March 2025. This represents nearly a threefold growth, with particularly notable jumps between March 2021 and March 2025. The total operating income closely mirrors this trend, indicating that other operating income has been negligible in recent years.
Operating profit before depreciation and interest (PBDIT) excluding other income has also improved, reaching ₹3.68 crores in March 2025 from ₹0.89 crores in March 2019. When factoring in other income, operating profit rose to ₹5.75 crores in the latest fiscal year. However, operating profit margins have remained relatively modest, fluctuating between 2.24% and 4.16% over the years, with a slight decline to 3.21% in March 2025.
Profit after tax (PAT) has increased from ₹0.41 crores in March 2019 to ₹3.37 crores in March 2025, reflecting a steady improvement in bottom-line performance. The PAT margin has similarly improved, reaching 2.94% in the latest year, up from 1.03% in 2019. Earnings per share (EPS) have shown variability, peaking at ₹1.09 in March 2024 before settling at ₹0.98 in March 2025, influenced by changes in equity capital.
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Cost Structure and Operating Efficiency
The company's raw material costs have scaled in line with revenue growth, increasing from ₹36.46 crores in March 2019 to ₹97.15 crores in March 2025. Other expenses have also risen, reaching ₹11.22 crores in the latest year, which has impacted operating margins. Employee costs have grown steadily but remain a small fraction of total expenditure, reflecting controlled overheads.
Despite the increase in costs, Ajooni Biotech has maintained a positive operating profit, supported by a disciplined approach to expenditure. Interest costs have remained low, declining to ₹0.33 crores in March 2025 from a peak of ₹0.58 crores in March 2021, indicating manageable debt levels.
Balance Sheet Strength and Asset Growth
Shareholder's funds have more than doubled from ₹41.67 crores in March 2023 to ₹88.08 crores in March 2025, driven by equity capital increases and reserve accumulation. The equity capital itself has grown significantly, reflecting capital raises that have supported expansion.
Total liabilities have increased but remain proportionate to asset growth, with total assets rising from ₹27.88 crores in March 2021 to ₹94.67 crores in March 2025. The company’s net block of fixed assets has expanded steadily, indicating ongoing investment in infrastructure and capacity.
Current assets have nearly tripled over the period, with inventories and sundry debtors increasing in line with business scale. Cash and bank balances have fluctuated but showed a notable increase in March 2025 compared to previous years.
Cash Flow and Financial Management
Cash flow from operating activities has been volatile, with a negative outflow of ₹17 crores in March 2025 contrasting with positive inflows in prior years. Investing activities have consistently required cash outflows, reflecting capital expenditure and long-term investments. Financing activities have provided significant inflows recently, supporting the company’s growth and working capital needs.
Overall, the net cash position has seen fluctuations, with a net outflow of ₹10 crores in the latest fiscal year after a strong inflow in the previous year. This pattern suggests active financial management to balance growth investments and liquidity.
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Summary of Historical Performance
In summary, Ajooni Biotech has exhibited strong revenue growth and improving profitability over the past several years, supported by prudent cost management and strategic capital investments. The company’s balance sheet has strengthened considerably, with rising shareholder equity and controlled debt levels. While cash flow from operations has shown some volatility, financing activities have effectively underpinned the company’s expansion plans.
Investors analysing Ajooni Biotech’s historical performance will note the steady upward trend in sales and profits, alongside a cautious approach to leverage and asset growth. The company’s ability to maintain positive operating margins and improve net profit margins, despite rising costs, reflects operational resilience in a competitive sector.
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