Revenue Growth and Operating Performance
Atul Auto’s net sales demonstrated a notable recovery and expansion after a dip in fiscal years 2021 and 2022. From ₹295.90 crores in March 2021, sales surged to ₹723.34 crores by March 2025, reflecting a compound growth trajectory. This rebound followed a challenging period where sales had declined sharply to ₹315.42 crores in March 2022. The total operating income mirrored this pattern, with no other operating income reported across the years.
Raw material costs, the largest expense component, rose in line with sales, reaching ₹515.81 crores in March 2025 from ₹243.28 crores in March 2022. Employee costs also increased steadily, indicating expansion in workforce or wage inflation, rising from ₹37.74 crores in March 2021 to ₹73.98 crores in March 2025. Other expenses similarly escalated, reflecting operational scaling.
Operating profit before depreciation and interest (PBDIT) excluding other income turned positive again in recent years, reaching ₹52.30 crores in March 2025 after losses in 2021 and 2022. The operating profit margin, which had been negative during the downturn, improved to 7.36% in March 2025, though still below the double-digit margins seen in 2019 and 2020.
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Profitability and Earnings Trends
Profit before tax (PBT) and profit after tax (PAT) have shown a similar recovery pattern. After posting losses in fiscal years 2021 and 2022, Atul Auto returned to profitability with a PBT of ₹26.62 crores and PAT of ₹18.34 crores in March 2025. The consolidated net profit followed suit, rising to ₹21.63 crores in the latest fiscal year from a loss of nearly ₹25 crores in 2022.
Earnings per share (EPS) reflected this turnaround, improving from a negative ₹11.37 in March 2022 to a positive ₹7.79 in March 2025. Despite this recovery, the PAT margin remains modest at 2.58% in the latest year, compared to over 8% in 2019 and 2020, indicating room for margin expansion as the company stabilises its operations.
Balance Sheet and Financial Position
Atul Auto’s balance sheet has strengthened alongside its operational recovery. Shareholders’ funds increased to ₹440.96 crores in March 2025 from ₹276.59 crores in March 2022, supported by rising reserves. The book value per share also improved steadily, reaching ₹158.85 in March 2025, up from ₹126.07 in 2022.
However, the company’s debt levels remain elevated compared to earlier years, with total debt at ₹109.53 crores in March 2025, down from a peak of ₹187.55 crores in 2022 but significantly higher than the ₹15 crores recorded in 2021. This indicates ongoing leverage as the company manages its growth and working capital needs.
Current assets have expanded to ₹270.27 crores in March 2025, with net current assets improving to ₹119.84 crores, reflecting better liquidity management. Capital work in progress has sharply declined from ₹149.80 crores in 2021 to just ₹1.25 crores in 2025, suggesting completion of major projects or capital expenditure cycles.
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Cash Flow and Liquidity
Cash flow from operating activities has shown marked improvement, turning positive at ₹25 crores in March 2025 after negative cash flows in the preceding two years. Investing activities have fluctuated, with a positive inflow of ₹8 crores in the latest year following significant outflows in earlier years. Financing activities reflect repayments and borrowings adjustments, with a net outflow of ₹36 crores in 2025.
The company’s closing cash and cash equivalents stood at ₹16 crores in March 2025, slightly down from ₹19 crores in the previous year but substantially higher than the low levels seen in 2023. This improved liquidity position supports operational stability and potential future investments.
Outlook and Considerations
Atul Auto’s historical performance reveals a company that has navigated through a challenging period marked by losses and high leverage but is now on a recovery path with growing revenues, improving profitability, and a stronger balance sheet. While margins remain below peak levels, the upward trends in earnings and cash flow suggest operational resilience. Investors should monitor the company’s ability to sustain margin improvements and manage debt levels as it continues to expand.
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