Revenue and Profitability Trends
The company’s net sales have shown a robust upward trajectory, rising from ₹46.84 crores in March 2020 to ₹206.44 crores in March 2025. This represents a more than fourfold increase over five years, signalling strong operational growth. Notably, the total operating income mirrored this trend, with no other operating income reported during this period.
Operating profit before other income (PBDIT excl. OI) shifted from negative territory in the early years, with losses recorded in 2020 and 2021, to a healthy ₹64.36 crores in March 2025. Including other income, operating profit rose to ₹79.36 crores in the latest fiscal year, reflecting improved operational efficiency and income diversification.
Profit before tax (PBT) and profit after tax (PAT) also followed a positive trend, moving from losses in 2020 and 2021 to profits of ₹57.90 crores and ₹42.35 crores respectively in March 2025. The consolidated net profit similarly improved, reaching ₹42.70 crores in the latest year compared to a loss of ₹6.74 crores in 2020. Earnings per share (EPS) rose substantially to ₹42.83, underscoring enhanced shareholder value.
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Cost Structure and Margins
The company’s total expenditure excluding depreciation increased in line with revenue growth, reaching ₹142.08 crores in March 2025. Manufacturing expenses formed the largest component, rising significantly from ₹59.32 crores in 2020 to ₹172.06 crores in 2025. Employee costs also increased steadily, reflecting expansion and possibly higher staffing levels.
Operating profit margins excluding other income improved markedly, from negative margins in 2020 and 2021 to a strong 31.18% in March 2025. Gross profit margin followed a similar pattern, reaching 28.29% in the latest year. PAT margin also turned positive, improving to 20.68%, indicating effective cost management and profitability enhancement.
Balance Sheet and Financial Position
Shareholders’ funds have grown substantially, from ₹110.65 crores in 2020 to ₹310.95 crores in 2025, supported by rising reserves. The book value per share increased from ₹128.66 to ₹301.22 over the same period, reflecting improved net asset value per share.
Total debt has been reduced significantly from ₹388.22 crores in 2020 to ₹130.93 crores in 2025, indicating a stronger capital structure and lower financial risk. Long-term borrowings decreased from ₹191.01 crores in 2021 to ₹119.63 crores in 2025, while short-term borrowings were sharply curtailed from ₹184.97 crores in 2022 to ₹11.30 crores in 2025.
On the asset side, total assets declined from ₹621.33 crores in 2020 to ₹576.82 crores in 2025, with a notable reduction in current liabilities improving net current assets from negative levels in 2022 to a positive ₹239.40 crores in 2025. The company’s gross block and net block of fixed assets remained relatively stable, supporting ongoing operations.
Cash Flow Analysis
Cash flow from operating activities has fluctuated, with negative cash flow of ₹86 crores in 2025 following positive inflows in prior years. This was influenced by significant changes in working capital, which showed a large outflow of ₹121 crores in 2025. Investing activities generated positive cash inflows, while financing activities contributed ₹71 crores in the latest year, supporting liquidity.
Despite operating cash flow challenges in the latest year, the company’s net cash inflow was positive at ₹14 crores, and cash and bank balances increased to ₹71 crores, indicating improved cash reserves and financial flexibility.
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Summary and Outlook
Overall, Arih.Found.Hsg. has exhibited a strong recovery and growth in its financial performance over the past five years. The company has transitioned from losses to profitability, with substantial increases in revenue, operating profit, and net profit margins. Its balance sheet has strengthened through debt reduction and enhanced shareholder equity, while cash reserves have improved despite some volatility in operating cash flows.
Investors may view this historical performance as indicative of the company’s ability to manage costs, improve operational efficiency, and strengthen its financial position. However, the recent negative operating cash flow highlights the importance of monitoring working capital management going forward. The company’s improved profitability and capital structure provide a solid foundation for future growth prospects.
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