Revenue and Operating Performance Trends
Over the seven-year period ending March 2025, AVI Products’ net sales exhibited notable volatility. The company’s revenue peaked at ₹4.85 crores in March 2024 before slightly declining to ₹4.71 crores in March 2025. Earlier years saw a dip to ₹2.38 crores in March 2021, followed by a recovery phase. Total operating income mirrored this pattern, with no other operating income reported throughout the period.
Cost management has been a critical factor influencing profitability. The purchase of finished goods consistently represented the largest expenditure, rising from ₹2.02 crores in 2019 to ₹2.96 crores in 2025. Employee costs have gradually increased, reaching ₹0.57 crores in the latest fiscal year. Other expenses also showed a rising trend, peaking at ₹0.95 crores in 2025. Manufacturing and power costs remained minimal or nil, indicating a lean operational structure.
Operating profit before other income (PBDIT) excluding other income declined sharply to ₹0.02 crores in March 2025 from ₹0.27 crores the previous year, reflecting margin pressures. However, other income contributed positively, lifting overall operating profit to ₹0.28 crores in 2025. Despite this, the operating profit margin excluding other income contracted significantly to 0.42% in 2025 from 5.57% in 2024, signalling tighter profitability.
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Profitability and Earnings Analysis
Profit before tax (PBT) showed a downward trend in the latest fiscal year, falling to ₹0.07 crores in 2025 from ₹0.33 crores in 2024. Correspondingly, profit after tax (PAT) declined to ₹0.05 crores in 2025 from ₹0.26 crores the year prior. Earnings per share (EPS) reflected this contraction, dropping to ₹0.15 in 2025 from ₹0.79 in 2024. Despite these declines, the company maintained a positive PAT margin of 1.06% in 2025, though this was significantly lower than the 5.36% recorded in 2024.
Interest expenses remained relatively low and stable, averaging around ₹0.03 to ₹0.05 crores annually, indicating limited borrowing costs. Depreciation charges increased modestly to ₹0.15 crores in 2025, consistent with asset base growth.
Balance Sheet and Capital Structure
AVI Products’ shareholder funds have shown robust growth, rising from ₹1.58 crores in 2021 to ₹7.10 crores in 2025. This increase is supported by a steady rise in reserves, which grew from ₹0.54 crores in 2021 to ₹3.79 crores in 2025, reflecting accumulated retained earnings and capital infusion. Equity capital also expanded, particularly between 2021 and 2023, indicating fresh equity issuance or capital restructuring.
The company has maintained a conservative debt profile, with total debt increasing slightly to ₹0.81 crores in 2025 from ₹0.26 crores in 2024, but remaining modest relative to equity. Long-term borrowings have consistently been nil, underscoring a preference for short-term financing or internal funding sources.
On the asset side, net block (fixed assets net of depreciation) increased steadily to ₹1.36 crores in 2025, up from ₹0.37 crores in 2021, signalling ongoing investment in property, plant, and equipment. Current assets also expanded significantly, reaching ₹6.56 crores in 2025, driven by increases in inventories and cash and bank balances. Notably, cash and bank balances surged to ₹3.19 crores in 2025, providing liquidity strength.
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Cash Flow and Liquidity Position
Cash flow data indicates limited operating cash inflows, with no reported cash flow from operating activities in recent years. Investing activities showed a cash outflow of ₹1 crore in 2023, likely related to asset acquisitions. Financing activities contributed positively in 2022 and 2024 with inflows of ₹2 crores each year, possibly reflecting equity raises or short-term borrowings. The net cash inflow/outflow fluctuated, with a net inflow of ₹1 crore in 2024 and an outflow of ₹2 crores in 2023.
Closing cash and cash equivalents remained strong at ₹3 crores in 2025, consistent with the company’s focus on maintaining liquidity buffers. The absence of contingent liabilities and minimal long-term debt further supports a stable financial footing.
Summary of Historical Performance
In summary, AVI Products has experienced a mixed financial performance over the past seven years. While sales and shareholder equity have generally trended upwards, profitability margins have faced pressure, particularly in the most recent fiscal year. The company’s conservative debt levels and strong liquidity position provide a solid foundation for future growth, though improving operating efficiency and margin expansion remain key challenges. Investors should weigh these factors carefully when considering AVI Products’ stock in the context of the broader Trading & Distributors sector.
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