Revenue and Profit Growth
In the fiscal year ending March 2025, Australian Prem reported net sales of ₹438.88 crores, a substantial increase from ₹149.67 crores in the previous year. This surge in revenue reflects a robust expansion in the company’s operations and market demand. Total operating income mirrored this growth, rising sharply to ₹438.88 crores from ₹149.67 crores.
Despite the rise in raw material costs from ₹127.11 crores to ₹382.15 crores, the company managed to improve its operating efficiency. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income more than quintupled to ₹56.56 crores, compared to ₹9.34 crores a year earlier. Including other income, operating profit stood at ₹58.82 crores, up from ₹9.98 crores.
Profit before tax surged to ₹53.62 crores from ₹8.25 crores, while profit after tax (PAT) rose impressively to ₹40.10 crores, a more than sixfold increase from ₹6.15 crores. This translated into a PAT margin of 9.14%, more than doubling the previous year’s 4.11%. Earnings per share (EPS) also reflected this improvement, climbing to ₹20.31 from ₹3.12.
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Cost Structure and Margins
The company’s cost of raw materials increased in line with higher sales volumes, but other expenses such as employee costs and other operating expenses also rose moderately. Employee costs more than doubled to ₹11.83 crores, while other expenses increased to ₹20.63 crores. Notably, there were no reported costs for power, manufacturing, or selling and distribution expenses, indicating a lean operational model.
Operating profit margin improved significantly to 12.89% from 6.24%, and gross profit margin nearly doubled to 13.13% from 6.49%. These margin expansions highlight better cost control and pricing power, contributing to the company’s enhanced profitability.
Balance Sheet Strength and Capital Structure
Australian Prem’s balance sheet as of March 2025 shows shareholder’s funds of ₹88.15 crores, supported by reserves of ₹68.41 crores, up from ₹28.34 crores the previous year. The equity capital remained steady at ₹19.74 crores with a face value of ₹10 per share. The book value per share improved to ₹44.66, reflecting the company’s growing net asset base.
Total liabilities stood at ₹211.52 crores, with long-term borrowings of ₹7.60 crores and short-term borrowings of ₹0.83 crores, indicating a manageable debt level. Trade payables and other current liabilities accounted for a significant portion of current liabilities at ₹87.34 crores and ₹25.47 crores respectively. The company maintained a healthy net current asset position of ₹67.72 crores.
Cash Flow and Liquidity
Cash flow from operating activities was positive at ₹24 crores, despite a working capital outflow of ₹30 crores, signalling strong core business cash generation. Investing activities reflected a cash outflow of ₹13 crores, likely related to capital expenditure or asset acquisition. Financing activities showed a minor outflow of ₹1 crore. Overall, the company recorded a net cash inflow of ₹9 crores, increasing its cash and bank balance to ₹30 crores by the end of the fiscal year, up from ₹20 crores.
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Summary of Historical Performance
Overall, Australian Prem has exhibited a strong financial turnaround in the latest fiscal year. The company’s revenue nearly tripled, while profitability metrics improved dramatically, with operating and net profit margins more than doubling. The balance sheet remains solid with increased reserves and a comfortable debt position. Positive operating cash flows and rising cash balances further reinforce the company’s financial health.
Investors may find the company’s improved earnings per share and book value per share particularly encouraging, signalling enhanced shareholder value. While costs have risen in absolute terms, the company’s ability to expand margins and generate cash flow suggests effective management and operational leverage.
Given these factors, Australian Prem’s historical performance over the past year reflects a company on a growth trajectory with improving fundamentals and financial stability.
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