How has been the historical performance of Ausom Enter.?

Revenue and Profit Trends

Examining the company's net sales from March 2019 through March 2025 reveals a highly variable pattern. Starting at ₹441.46 crores in March 2019, sales surged to ₹1,072.71 crores by March 2020, before dipping to ₹463.37 crores in March 2021. The subsequent years saw a remarkable rebound, with net sales climbing to ₹2,392.53 crores by March 2025, more than doubling the previous year’s ₹968.35 crores. This volatility suggests periods of restructuring or market shifts, but the recent surge indicates strong recovery and expansion.

Operating profit margins excluding other income have remained modest, with a low of negative 1.94% in March 2023 and a peak near 4.85% in March 2022. Despite these fluctuations, the company maintained positive operating profits in most years, supported by other income streams. The consolidated net profit followed a similar pattern, rising from ₹9.97 crores in March 2019 to a peak of ₹21.99 crores in March 2021, dipping to ₹1.20 crores in March 2023, and recovering to ₹19.55 crores in March 2025. Earnings per share mirrored this trend, reaching ₹14.35 in the latest fiscal year, reflecting improved profitability.

Cost Structure and Margins

The company’s cost of raw materials and purchase of finished goods have been significant components of total expenditure. For instance, in March 2025, raw material costs were ₹84.76 crores, while purchases of finished goods soared to ₹2,304.92 crores, indicating a heavy reliance on procurement rather than in-house production. Other expenses and employee costs remained relatively low, reflecting a lean operational model. Despite the high expenditure, Ausom Enter. managed to keep interest costs minimal in recent years, with interest expenses dropping to ₹0.05 crores in March 2025 from ₹25.29 crores in March 2020, signalling improved financial health and reduced debt burden.

Balance Sheet and Asset Quality

On the balance sheet front, shareholder’s funds have steadily increased from ₹96.48 crores in March 2020 to ₹143.06 crores in March 2025, supported by rising reserves. The company has maintained a negligible debt position, with total debt at just ₹0.07 crores in the latest fiscal year, underscoring a conservative capital structure. Total assets have contracted from ₹400.24 crores in March 2020 to ₹185.70 crores in March 2025, reflecting possible asset optimisation or divestments. Non-current investments have grown to ₹73.39 crores, while current assets stand at ₹111.55 crores, indicating a balanced asset allocation.

Cash Flow Dynamics

Cash flow from operating activities has shown improvement, with ₹8.00 crores generated in March 2025 compared to a negative ₹187.00 crores in March 2020. Investing activities have been relatively stable, while financing activities have seen outflows, consistent with debt repayments and capital management. The net cash inflow of ₹5.00 crores in March 2025 marks a positive liquidity position, supported by a closing cash and cash equivalent balance of ₹6.00 crores.

Summary and Outlook

Overall, Ausom Enter. has demonstrated resilience and growth potential despite periods of volatility. The substantial increase in net sales and consolidated net profit in recent years, combined with a strong equity base and minimal debt, positions the company favourably for future expansion. Margins remain thin but have shown signs of recovery, and cash flow improvements suggest enhanced operational efficiency. Investors may find the company’s evolving financial profile indicative of a turnaround story with promising long-term prospects.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →