Revenue and Profitability Trends
Over the seven-year period ending March 2025, Andhra Sugars’ net sales demonstrated variability, peaking notably in the fiscal year 2023 before moderating in subsequent years. The company’s total operating income followed a similar trajectory, with a high point in 2023 at over ₹2,360 crores, before settling around ₹2,020 crores in 2025. This volatility is indicative of the cyclical nature of the sugar and chemical industries, influenced by commodity prices and market demand.
Operating profit margins, excluding other income, have seen a gradual decline from a robust 22.0% in 2019 to approximately 5.2% in 2025. This contraction suggests rising input costs and operational challenges impacting core profitability. Despite this, the company’s operating profit including other income remained relatively stable around ₹150 crores in the latest fiscal years, supported by other income streams.
Profit after tax (PAT) margins have also contracted, from nearly 14% in 2019 to just over 1.3% in 2025, reflecting pressures on net profitability. The consolidated net profit mirrored this trend, with a peak of ₹242 crores in 2022 before declining to ₹26 crores in 2025. Earnings per share (EPS) followed suit, decreasing from a high of nearly ₹75 in 2020 to under ₹2 in 2025, signalling significant earnings volatility.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Asset and Liability Management
On the balance sheet front, Andhra Sugars has steadily increased its shareholder’s funds from approximately ₹1,154 crores in 2020 to ₹1,592 crores in 2025, reflecting retained earnings and reserve growth. The company’s total liabilities have also risen, reaching over ₹2,100 crores in 2025, with a notable reduction in long-term borrowings from ₹136 crores in 2020 to nil in 2025, indicating a strategic deleveraging effort.
Current liabilities have remained relatively stable, while trade payables and provisions have increased moderately, suggesting ongoing operational commitments. The net block of fixed assets has grown from around ₹711 crores in 2020 to ₹952 crores in 2025, signalling continued capital investment and asset base expansion. Capital work in progress also rose, indicating ongoing projects or capacity enhancements.
Non-current assets have expanded steadily, supported by investments and advances, while current assets have fluctuated slightly but remained robust at over ₹865 crores in 2025. The company’s book value per share has improved from ₹85 in 2020 to ₹117 in 2025, reflecting enhanced net asset value per share.
Cash Flow and Operational Efficiency
Cash flow analysis reveals that Andhra Sugars has maintained positive cash flow from operating activities, though with some fluctuations. Operating cash flow peaked at ₹285 crores in 2023 but moderated to ₹127 crores in 2025. Investing activities consistently showed cash outflows, reflecting capital expenditure and investments, with ₹93 crores spent in 2025.
Financing activities have generally been cash outflows, consistent with debt repayments and dividend payments, with ₹34 crores outflow in 2025. The company’s closing cash and cash equivalents stood at ₹25 crores in 2025, indicating a stable liquidity position despite operational challenges.
Overall, Andhra Sugars’ historical performance illustrates a company navigating cyclical industry pressures with strategic asset management and deleveraging, though profitability margins have contracted in recent years.
Why settle for Andhra Sugars? SwitchER evaluates this Commodity Chemicals Microcap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Conclusion
In summary, Andhra Sugars has experienced a mixed financial journey over the past several years. While revenue and asset base have generally expanded, profitability margins have faced downward pressure, reflecting industry headwinds and cost challenges. The company’s efforts to reduce debt and maintain positive operating cash flows are positive signs of financial discipline. Investors should weigh these factors carefully, considering the cyclical nature of the sector and the company’s strategic positioning when evaluating Andhra Sugars for potential investment.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
