Revenue and Operating Performance Trends
Over the past six years, Andhra Cements’ net sales have shown considerable volatility. The company recorded a peak revenue of over ₹320 crores in the fiscal year ending March 2019, followed by a sharp decline to approximately ₹143 crores in March 2020. Revenues rebounded modestly in the subsequent years, reaching around ₹274 crores by March 2025. However, the years 2022 and 2023 notably reflect zero reported sales, indicating operational disruptions or reporting anomalies during that period.
Operating profitability has been a persistent concern. The company posted a positive operating profit before depreciation and interest (PBDIT) only in March 2019, with a margin of just over 4%. Since then, operating margins have deteriorated, with losses widening to double-digit negative percentages in recent years. For instance, the operating profit margin excluding other income was approximately -10.7% in March 2025, reflecting ongoing cost pressures and operational inefficiencies.
Raw material and power costs constitute significant expenditure components, with power costs alone exceeding ₹150 crores in the latest fiscal year. Employee costs and manufacturing expenses have also remained substantial, contributing to total expenditure surpassing operating income in most years. These cost dynamics have weighed heavily on the company’s ability to generate operating profits.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Profitability and Earnings Analysis
Profit before tax has consistently been negative except for a remarkable spike in March 2023, where the company reported a substantial profit before tax of over ₹880 crores. This anomaly is likely linked to exceptional items or accounting adjustments, as the surrounding years reflect significant losses. Correspondingly, profit after tax has remained in the red for most years, with losses exceeding ₹150 crores in the latest fiscal year.
Earnings per share (EPS) have mirrored this trend, with negative values in all years except March 2023, where EPS surged to over ₹100. This irregularity aside, the company’s earnings profile has been weak, reflecting ongoing challenges in generating shareholder value.
Balance Sheet and Financial Position
Andhra Cements’ balance sheet reveals a complex financial structure. Shareholder’s funds swung from negative territory in earlier years to a positive ₹144 crores by March 2025, indicating some recovery in net worth. However, the company continues to carry a heavy debt burden, with total debt exceeding ₹750 crores in the latest fiscal year. Long-term borrowings form the bulk of this debt, with secured loans accounting for the majority.
Asset-wise, the company maintains a substantial gross block of fixed assets valued at over ₹1,390 crores, with accumulated depreciation reducing net block to around ₹759 crores. Capital work in progress has increased notably in recent years, suggesting ongoing investments or expansion efforts.
Current assets have fluctuated, with inventories and sundry debtors showing variable levels. Net current assets have been negative in recent years, reflecting liquidity pressures. Cash flow from operating activities has been inconsistent, with positive inflows in some years but negative or negligible cash generation in others. Investing activities have generally involved cash outflows, while financing activities have varied between inflows and outflows, indicating active management of capital structure.
Holding Andhra Cements from Cement & Cement Products? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary and Outlook
In summary, Andhra Cements has faced a challenging financial trajectory characterised by volatile revenues, persistent operating losses, and a leveraged balance sheet. While the company showed a brief spike in profitability in March 2023, this appears to be an outlier amid a broader pattern of financial stress. The recent fiscal years indicate some stabilisation in revenues and shareholder funds, but profitability and cash flow remain areas of concern.
Investors and market participants should carefully consider these historical trends alongside sector dynamics and peer performance when evaluating Andhra Cements’ prospects. The company’s ongoing investments and efforts to manage costs will be critical in shaping its future financial health and market position.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
