Revenue and Profitability Trends
Over the seven-year period ending March 2025, Amarjothi Spg.’s net sales have demonstrated notable volatility. The company’s revenue peaked in the fiscal year 2022 at ₹257.47 crores before declining to ₹230.30 crores in 2025. Despite this dip, the sales figure in 2025 remains higher than the levels recorded in 2019 and the early 2020s, indicating a recovery from earlier troughs.
Operating profit margins, excluding other income, have contracted from a high of 21.97% in 2020 to 13.68% in 2025. This decline reflects rising raw material costs and other expenses, which have increased steadily over the years. The operating profit (PBDIT) also followed a downward trend from ₹42.63 crores in 2019 to ₹31.50 crores in 2025, signalling margin pressures despite revenue growth.
Profit after tax (PAT) has mirrored this pattern, with a peak of ₹22.18 crores in 2022 before falling to ₹11.35 crores in 2025. The PAT margin similarly decreased from 7.09% in 2019 to 4.93% in 2025, underscoring the impact of higher interest and depreciation costs on net profitability. Earnings per share (EPS) have reflected these fluctuations, reaching a high of 32.25 in 2022 and settling at 16.81 in 2025.
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Cost Structure and Expenses
The company’s raw material costs have generally increased in line with sales, rising from ₹110.22 crores in 2019 to ₹118.89 crores in 2025, though with some fluctuations. Notably, the (increase)/decrease in stocks has varied significantly, impacting working capital and cost of goods sold. Employee costs have steadily risen, reaching ₹20.57 crores in 2025 from ₹14.13 crores in 2019, reflecting possible expansion or wage inflation.
Other expenses have also shown variability, peaking at ₹59.46 crores in 2022 before easing to ₹39.30 crores in 2025. The absence of power and selling expenses in reported figures suggests these costs may be embedded within other categories or minimal. Manufacturing expenses have remained negligible, indicating operational stability in production overheads.
Balance Sheet and Financial Position
Amarjothi Spg.’s shareholder funds have grown consistently, from ₹134.26 crores in 2020 to ₹192.07 crores in 2025, supported by rising reserves. The book value per share has increased from ₹198.91 in 2020 to ₹284.54 in 2025, signalling enhanced net asset value for shareholders.
However, total liabilities have decreased from ₹302.60 crores in 2020 to ₹276.33 crores in 2025, with a marked reduction in total debt from ₹117.80 crores to ₹52.09 crores over the same period. This deleveraging trend is positive for the company’s financial health, reducing interest burden and risk.
Net block of fixed assets has declined from ₹171.98 crores in 2020 to ₹123.31 crores in 2025, possibly reflecting asset sales or depreciation outpacing capital expenditure. Capital work in progress has also reduced significantly, indicating completion or scaling back of projects.
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Cash Flow and Liquidity
Cash flow from operating activities has fluctuated considerably, with a peak of ₹54 crores in 2021 and a more modest ₹14 crores in 2025. Investing activities have alternated between inflows and outflows, reflecting asset acquisitions and disposals. Financing activities have generally been negative in recent years, indicating debt repayments or dividend payments.
Net cash inflow has been modest, with ₹3 crores in 2025, suggesting a stable but cautious liquidity position. The closing cash and bank balance has improved to ₹4.41 crores in 2025 from lower levels in preceding years, providing some buffer for operational needs.
Summary
In summary, Amarjothi Spg. has experienced a mixed historical performance characterised by revenue volatility, margin pressures, and a strategic reduction in debt. While profitability metrics have softened from earlier highs, the company’s balance sheet strength and cash flow management indicate a focus on financial stability. Investors should weigh these factors alongside sector dynamics and peer comparisons when considering Amarjothi Spg. for their portfolios.
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