How has been the historical performance of Astra Microwave?

Revenue and Profit Growth

Over the seven-year period ending March 2025, Astra Microwave’s net sales surged from ₹293.49 crores in 2019 to ₹1,051.18 crores in 2025, reflecting a compound growth trend that underscores expanding market demand and operational scale. This growth was accompanied by a steady rise in operating profit (PBDIT), which climbed from ₹53.29 crores in 2019 to ₹286.55 crores in 2025, indicating improved operational efficiency and cost management.

The company’s profit after tax (PAT) also exhibited significant improvement, increasing from ₹11.54 crores in 2019 to ₹144.16 crores in 2025. Consolidated net profit followed a similar trajectory, rising from ₹9.76 crores to ₹153.51 crores over the same period. Earnings per share (EPS) mirrored this upward trend, reaching ₹16.17 in 2025 from a modest ₹1.13 in 2019, signalling enhanced shareholder returns.

Margins and Cost Structure

Astra Microwave’s operating profit margin (excluding other income) improved markedly from 9.8% in 2019 to 25.59% in 2025, reflecting enhanced profitability and operational leverage. Gross profit margin also rose from 15.0% to 21.82% during this period. Despite rising raw material costs, which increased from ₹180.08 crores in 2019 to ₹626.27 crores in 2025, the company managed to control other expenses and employee costs effectively, supporting margin expansion.

Interest expenses increased over the years, reaching ₹57.13 crores in 2025 from ₹9.26 crores in 2019, largely due to higher borrowings. However, the company’s profit before tax (PBT) still showed a strong upward trend, more than doubling from ₹15.14 crores in 2019 to ₹194.39 crores in 2025.

Balance Sheet and Financial Position

Shareholders’ funds grew substantially from ₹540.15 crores in 2020 to ₹1,098.47 crores in 2025, supported by rising reserves and retained earnings. The book value per share increased from ₹62.36 in 2020 to ₹115.7 in 2025, indicating enhanced net asset value per share. Total liabilities expanded in line with business growth, reaching ₹1,839.78 crores in 2025 from ₹894.03 crores in 2020, with a notable rise in both short-term and long-term borrowings.

Current assets rose significantly, driven by increases in inventories and sundry debtors, reflecting higher operational scale. Net current assets improved from ₹336.88 crores in 2020 to ₹912.85 crores in 2025, indicating stronger liquidity and working capital management.

Cash Flow and Liquidity Trends

Cash flow from operating activities has been volatile, with negative cash flows recorded in recent years, including a ₹90 crore outflow in 2025. This was influenced by significant changes in working capital, which saw large outflows of ₹311 crores in 2025. Investing activities consistently reflected cash outflows due to capital expenditure and investments, while financing activities provided inflows, notably ₹141 crores in 2025, to support growth and debt servicing.

Despite these fluctuations, the company maintained a positive net cash inflow in most years, with closing cash and cash equivalents standing at ₹20 crores in 2025. This suggests prudent cash management amid expansion.

Summary of Historical Performance

In summary, Astra Microwave has exhibited strong revenue growth, improved profitability, and enhanced shareholder value over the past several years. The company’s expanding margins and rising net profits reflect operational efficiencies and market demand. While debt levels and interest costs have increased, the balance sheet remains robust with growing net assets and liquidity. Cash flow management presents some challenges due to working capital demands, but overall financial health supports continued growth prospects.

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