How has been the historical performance of Artemis Electri.?

Revenue and Profitability Trends

Artemis Electri.’s net sales have shown a generally upward trajectory, rising from ₹34.33 crores in March 2022 to ₹72.35 crores in March 2025. Despite a dip in March 2024 to ₹41.36 crores, the company rebounded strongly in the latest fiscal year. Total operating income mirrored this pattern, reflecting the absence of other operating income throughout the period.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved significantly, moving from a negative ₹7.16 crores in March 2022 to a positive ₹11.15 crores in March 2025. This shift underscores a successful operational turnaround. The operating profit margin, excluding other income, also recovered from a negative margin of -20.86% in 2022 to a healthy 15.41% in 2025, indicating improved cost management and operational efficiency.

Profit after tax (PAT) followed a similar pattern, with the company posting a loss of ₹12.02 crores in March 2022 but returning to profitability with ₹7.56 crores in March 2025. The PAT margin improved from a negative 35.01% to a positive 10.45% over the same period. Earnings per share (EPS) reflected this recovery, moving from a loss per share to a positive ₹0.30 in the latest fiscal year.

Cost Structure and Expenditure

The company’s total expenditure excluding depreciation rose from ₹41.49 crores in March 2022 to ₹61.20 crores in March 2025, reflecting increased scale of operations. Notably, manufacturing expenses surged significantly in the latest year, indicating higher production activity. Raw material costs fluctuated, with a notable decrease in March 2023 but a rise again in March 2025. Employee costs remained relatively stable, suggesting controlled labour expenses. Other expenses also increased, which may warrant further scrutiny for sustainability.

Interest expenses have declined sharply from ₹5.89 crores in March 2022 to just ₹0.28 crores in March 2025, signalling effective debt management and reduced financial burden. This reduction has positively impacted gross profit and net profitability.

Balance Sheet and Financial Position

Shareholders’ funds have steadily increased from ₹69.33 crores in March 2022 to ₹85.96 crores in March 2025, supported by rising reserves. The company’s total liabilities have remained relatively stable around ₹120 crores, with a marked reduction in total debt from ₹29.44 crores in 2022 to ₹1.71 crores in 2025. This deleveraging enhances financial stability and reduces risk.

Capital work in progress has expanded significantly, more than tripling from ₹14.16 crores in 2022 to ₹55.55 crores in 2025, indicating ongoing investments in capacity or infrastructure. Net block of fixed assets has slightly declined, reflecting depreciation outpacing additions. Current assets have decreased from ₹69.33 crores to ₹50.44 crores, with a notable reduction in sundry debtors and inventories, which may improve working capital efficiency.

Cash Flow Analysis

Operating cash flow has improved markedly, rising from ₹1 crore in March 2022 to ₹41 crores in March 2025, reflecting stronger core business cash generation. Cash flow after changes in working capital also increased substantially, indicating effective management of receivables, payables, and inventory. Investing activities have consistently been cash outflows, driven by capital expenditure and investments in growth. Financing activities show net outflows in recent years, consistent with debt repayment and reduced borrowings.

Summary and Outlook

Overall, Artemis Electri. has exhibited a strong recovery from a challenging financial position in 2022 to a profitable and more stable entity by 2025. Revenue growth, improved margins, and reduced debt levels highlight the company’s operational and financial turnaround. The increase in capital work in progress suggests a focus on future expansion, while improved cash flows underpin liquidity strength. Investors should monitor cost trends and capital expenditure to assess sustainability of growth and profitability.

With a book value per share rising steadily and earnings turning positive, Artemis Electri. presents a case of successful restructuring and growth potential. However, the company’s relatively modest profit margins and rising expenses warrant cautious optimism as it navigates competitive and market challenges.

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