Revenue and Profitability Trends
Over the seven-year period, Alfa Ica (I) experienced notable variations in net sales, with revenues rising from ₹56.05 crores in March 2019 to a peak of ₹79.98 crores in March 2022, before moderating to ₹78.56 crores in March 2025. This growth reflects the company’s ability to expand its market presence despite sectoral challenges. Operating profit margins, excluding other income, have remained relatively stable, oscillating between 5.31% and 6.48%, indicating consistent operational efficiency. The operating profit (PBDIT) including other income increased from ₹4.09 crores in March 2019 to ₹5.22 crores in March 2025, underscoring improved earnings before interest and tax.
Profit after tax (PAT) has shown a steady upward trend, rising from ₹1.25 crores in March 2019 to ₹1.44 crores in March 2025, with earnings per share (EPS) reflecting a similar pattern, increasing from ₹3.09 to ₹3.56 over the same period. Despite some fluctuations in profit before tax, the company has maintained a PAT margin around 2%, demonstrating consistent bottom-line performance.
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Cost Structure and Expense Management
The company’s raw material costs have generally tracked revenue growth, rising from ₹37.76 crores in March 2019 to ₹46.39 crores in March 2025, reflecting increased production scale. Other expenses have also increased but at a controlled pace, from ₹12.98 crores to ₹25.34 crores over the same period. Employee costs have risen modestly, indicating measured workforce expansion or wage inflation. Notably, the company reported no power or selling and distribution expenses, suggesting a lean operational model or cost absorption in other heads.
Interest expenses have increased from ₹1.62 crores in March 2019 to ₹1.94 crores in March 2025, consistent with a rise in total debt from ₹13.92 crores to ₹19.00 crores. Despite this, the company has managed to sustain gross profit (PBDT) margins around 4%, reflecting effective cost control and pricing strategies.
Balance Sheet Strength and Asset Base
Alfa Ica (I) has steadily enhanced its shareholder’s funds, which grew from ₹16.98 crores in March 2021 to ₹23.22 crores in March 2025. The company’s reserves have also increased, supporting a rising book value per share from ₹42.03 in March 2021 to ₹57.48 in March 2025, signalling improved net asset value for shareholders. The net block of fixed assets has expanded from ₹12.55 crores in March 2020 to ₹19.57 crores in March 2025, indicating ongoing capital investment.
Current assets have remained robust, with inventories and sundry debtors showing moderate growth, while cash and bank balances have been minimal but stable. Total liabilities have increased in line with asset growth, with a notable rise in short-term borrowings from ₹4.05 crores in March 2020 to ₹11.98 crores in March 2025, which may warrant monitoring for liquidity management.
Cash Flow and Financial Stability
Cash flow from operating activities has fluctuated, with a peak of ₹6 crores in earlier years and a decline to ₹1 crore in March 2025, reflecting working capital changes and operational cash generation variability. Investing activities consistently show outflows, indicative of capital expenditure commitments, while financing activities have alternated between inflows and outflows, suggesting active debt management and capital structuring efforts. The net cash position has remained neutral, with no significant cash accumulation or depletion reported.
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Summary and Investor Considerations
In summary, Alfa Ica (I) has shown a generally positive historical performance characterised by revenue growth, stable profitability, and strengthening equity base. The company’s ability to maintain operating margins despite rising raw material and other expenses is notable. However, the increase in debt levels and fluctuating cash flows suggest that investors should monitor liquidity and leverage metrics closely. The consistent rise in book value per share and EPS indicates value creation over time, making Alfa Ica (I) a company with a solid financial foundation and growth potential within its sector.
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