Revenue and Profitability Trends
Over the last seven financial years, Balurghat Tech’s net sales have shown a general upward trajectory, rising from ₹54.49 crores in March 2019 to ₹87.01 crores in March 2025. Despite a dip in sales during the fiscal years ending March 2022 and 2023, the company rebounded strongly in the latest fiscal year. The total operating income mirrored this pattern, with no other operating income reported, indicating reliance on core business activities.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved from ₹2.01 crores in March 2019 to ₹4.05 crores in March 2025, reflecting enhanced operational efficiency. The operating profit margin excluding other income rose to 4.65% in the latest year, up from a low of 1.36% in March 2021, signalling a recovery from a period of margin compression.
Profit before tax (PBT) and profit after tax (PAT) also followed a positive trend after a loss in March 2021. PAT improved from a negative ₹0.91 crores in March 2021 to a positive ₹2.11 crores in March 2025, with the PAT margin reaching 2.43%. Earnings per share (EPS) correspondingly increased to ₹1.21 in March 2025, up from a loss per share in 2021, indicating restored shareholder value.
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Cost Structure and Expenses
The company’s expenditure profile reveals that manufacturing expenses constitute the largest cost component, increasing from ₹30.57 crores in March 2019 to ₹74.34 crores in March 2025. Employee costs have also risen steadily, reflecting possible expansion or wage inflation, reaching ₹4.67 crores in the latest year. Other expenses have increased moderately, while there were no raw material costs or selling and distribution expenses reported in recent years, suggesting a specific business model or accounting treatment.
Interest expenses have fluctuated but remained relatively contained, at ₹1.21 crores in March 2025, down from a peak of ₹1.87 crores in March 2021. Depreciation charges have been stable, averaging around ₹0.25 to ₹0.45 crores annually.
Balance Sheet and Financial Position
Balurghat Tech’s balance sheet shows a gradual increase in total assets from ₹25.00 crores in March 2020 to ₹42.36 crores in March 2025. Shareholders’ funds have improved from ₹10.58 crores in March 2021 to ₹17.39 crores in March 2025, reflecting retained earnings recovery and capital stability. However, reserves remain slightly negative in recent years, indicating past accumulated losses or adjustments.
The company’s debt profile reveals a reduction in long-term borrowings from ₹8.45 crores in March 2020 to ₹2.18 crores in March 2025, while short-term borrowings have increased significantly to ₹18.28 crores in the latest year. This shift suggests a change in financing strategy, possibly to manage working capital requirements.
Net block of fixed assets has remained relatively stable, around ₹3.45 crores in March 2025, with gross block increasing modestly. Non-current investments and long-term loans and advances have grown, indicating some asset diversification or strategic investments.
Cash Flow and Liquidity
Cash flow from operating activities has been volatile, with a negative ₹8.00 crores in March 2025, contrasting with positive inflows in prior years. Changes in working capital have exerted pressure, notably a ₹10.00 crores outflow in the latest year. Investing activities have seen minor outflows, while financing activities provided a significant inflow of ₹10.00 crores in March 2025, likely supporting liquidity needs.
Closing cash and cash equivalents stood at ₹5.00 crores in March 2025, consistent with prior years, indicating maintained liquidity despite operational cash flow challenges.
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Summary and Outlook
Balurghat Tech’s historical performance reflects a company that has navigated through periods of volatility and loss to achieve a more stable and profitable position in recent years. Revenue growth has been steady, with operational margins improving and profitability returning after a loss in 2021. The balance sheet shows strengthening equity and a shift in debt composition, while cash flow management remains an area to watch due to recent operating outflows.
Investors analysing Balurghat Tech should consider its recovery trajectory, improving earnings per share, and operational efficiencies alongside the evolving capital structure. The company’s ability to sustain growth and manage working capital effectively will be critical for future performance.
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