Revenue and Profit Trends
Examining Amco India’s net sales from fiscal year ending March 2019 through March 2025 reveals notable volatility. The company’s revenue peaked in the fiscal years ending March 2022 and March 2023, reaching over ₹150 crores, before contracting to just above ₹105 crores in the most recent fiscal year. This decline from the peak levels indicates a period of adjustment or market challenges. Despite this, the company’s operating profit (PBDIT) excluding other income showed a recovery in the latest year, rising to ₹2.76 crores from ₹1.23 crores the previous year, signalling improved operational efficiency.
Other income has consistently contributed to the bottom line, with figures hovering around ₹1.9 crores in the latest fiscal year. Consequently, the total operating profit (PBDIT) increased to ₹4.68 crores, up from ₹3.34 crores in the prior year. However, interest expenses remained relatively stable, slightly increasing to ₹1.19 crores, which impacted the gross profit (PBDT) and profit before tax (PBT).
Profit after tax (PAT) demonstrated a positive trend, nearly doubling from ₹0.83 crores in the previous year to ₹1.87 crores in the latest fiscal year. Earnings per share (EPS) followed suit, rising to ₹4.55 from ₹2.02, reflecting enhanced profitability for shareholders. Despite these improvements, profit margins remain modest, with the PAT margin at 1.78% in the latest year, indicating room for margin expansion.
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Cost Structure and Operational Efficiency
Raw material costs have consistently represented the largest expenditure, closely tracking revenue fluctuations. For instance, raw material costs peaked alongside revenues in fiscal years 2022 and 2023, exceeding ₹140 crores, before easing to approximately ₹95 crores in the latest year. Employee costs have seen a gradual increase, reaching ₹3.33 crores, reflecting possible investments in human capital or wage inflation. Other expenses have generally declined from a high of over ₹7 crores in 2020 to under ₹5 crores recently, suggesting tighter cost control measures.
The company’s operating profit margin, excluding other income, has varied between 1.06% and 3.97% over the years, with the latest year showing an improvement to 2.62%. Gross profit margins have also improved, reaching 3.31% in the most recent fiscal year, indicating better absorption of costs relative to sales.
Balance Sheet and Financial Position
Amco India’s balance sheet reflects steady growth in shareholder’s funds, rising from ₹28.93 crores in 2020 to ₹37.53 crores in 2025. Reserves have similarly increased, supporting the company’s net worth. Total liabilities have fluctuated, peaking at over ₹60 crores in 2022 before declining to ₹58.10 crores in the latest year. Notably, long-term borrowings have reduced from ₹3.45 crores in 2022 to ₹1.34 crores, while short-term borrowings remain elevated at ₹11.30 crores, indicating a reliance on working capital financing.
Asset-wise, net block values have remained relatively stable, around ₹13-15 crores, with capital work in progress showing a slight increase recently. Current assets have grown to ₹34.75 crores, supported by higher inventories and sundry debtors, which may reflect increased operational scale or inventory build-up. The company’s book value per share has steadily appreciated, reaching ₹91.3, signalling enhanced shareholder value over time.
Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹3 crores in the latest fiscal year contrasting with positive inflows in prior years. Changes in working capital have significantly influenced cash flows, with a notable outflow in the recent year. Investing activities contributed a positive cash flow of ₹2 crores, while financing activities added ₹1 crore, resulting in a neutral net cash position. The company’s cash and bank balances have modestly increased to ₹1.42 crores, indicating a cautious liquidity stance.
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Summary and Outlook
Overall, Amco India’s historical performance depicts a company that has navigated through periods of revenue volatility and margin pressure but has recently demonstrated signs of operational improvement and profitability resurgence. The steady increase in shareholder funds and book value per share underscores a strengthening financial foundation. However, the company’s reliance on short-term borrowings and fluctuating cash flows suggest areas for cautious monitoring.
Investors should weigh the company’s recent profitability gains against its historical revenue fluctuations and cost structure to assess its future growth potential. The improving earnings per share and operating margins are encouraging, yet the modest profit margins highlight the need for continued focus on efficiency and cost management.
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