Revenue and Profitability Trends
Over the three-year period ending March 2025, Amrapali Inds. reported a consistent decrease in net sales, falling from ₹29,068.44 crores in March 2023 to ₹25,677.75 crores in March 2025. This represents a decline of approximately 11.7%, signalling challenges in maintaining top-line growth. Despite this, the company’s operating profit before depreciation, interest, and tax (PBDIT) remained relatively stable, hovering around ₹7.7 crores in the last two years, though slightly down from ₹8.59 crores in March 2023.
Operating profit margins, excluding other income, were minimal, at around 0.01% to 0.02%, reflecting tight cost controls but limited pricing power or operational leverage. Other income contributed positively, increasing from ₹4.17 crores in March 2023 to ₹5.25 crores in March 2025, helping to sustain overall operating profitability.
Interest expenses showed a declining trend, dropping from ₹5.98 crores in March 2023 to ₹3.72 crores in March 2025, indicating effective management of debt servicing costs. Consequently, profit before tax improved from ₹0.88 crores in March 2023 to ₹2.12 crores in March 2025. The net profit after tax followed suit, rising from ₹0.72 crores to ₹1.64 crores over the same period, with earnings per share increasing from ₹0.14 to ₹0.32.
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Balance Sheet and Financial Position
Amrapali Inds.’ shareholder funds increased modestly from ₹31.38 crores in March 2024 to ₹33.02 crores in March 2025, supported by a rise in reserves from ₹5.67 crores to ₹7.31 crores. The company maintained a consistent equity capital base of ₹25.71 crores with a face value of ₹5 per share.
Total liabilities decreased significantly from ₹171.40 crores in March 2024 to ₹120.15 crores in March 2025, largely due to a reduction in short-term borrowings from ₹62.97 crores to ₹38.48 crores. This deleveraging effort has improved the company’s financial stability, although current liabilities remain substantial at ₹84.08 crores.
On the asset side, total assets declined from ₹171.40 crores to ₹120.15 crores, reflecting a reduction in non-current assets and current assets alike. Inventories nearly doubled from ₹15.48 crores to ₹31.36 crores, which may indicate stockpiling or slower inventory turnover. Meanwhile, short-term loans and advances halved from ₹121.80 crores to ₹61.07 crores, suggesting tighter working capital management.
Cash Flow and Liquidity
Cash flow from operating activities turned negative in the latest fiscal year, with an outflow of ₹6 crores compared to an inflow of ₹4 crores in the previous year. This was driven by an adverse change in working capital amounting to ₹8 crores. However, investing activities generated a positive cash flow of ₹10 crores, partially offsetting the operating cash outflow. Financing activities continued to absorb cash at ₹4 crores, consistent with the prior year.
Closing cash and cash equivalents stood at ₹1 crore in March 2025, down from ₹2 crores at the start of the year, indicating a tight liquidity position. The company’s book value per share improved slightly from ₹6.10 to ₹6.42, reflecting incremental value creation for shareholders despite the challenging operating environment.
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Summary and Outlook
In summary, Amrapali Inds. has faced a declining revenue trajectory over the last three years, with net sales dropping by nearly 12%. Despite this, the company has managed to improve its profitability metrics modestly, reducing interest expenses and increasing net profit margins, albeit from a low base. The balance sheet shows signs of deleveraging and cautious financial management, with a notable reduction in total liabilities and improved reserves.
However, the negative operating cash flow and increased inventory levels highlight ongoing operational challenges. Investors should weigh these factors carefully, considering the company’s efforts to stabilise earnings and strengthen its financial position against the backdrop of subdued sales growth.
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