How has been the historical performance of Bansal Wire Inds?

Revenue and Profit Growth

Over the fiscal years ending March 2023 to March 2025, Bansal Wire Inds’ net sales surged from ₹2,413.01 crores to ₹3,507.17 crores, representing a compound annual growth rate of approximately 19.5%. This growth was accompanied by a proportional rise in raw material costs, which increased from ₹1,998.50 crores to ₹2,878.15 crores, reflecting the company’s scaling operations. Despite rising input costs, the firm managed to enhance its operating profit (PBDIT) from ₹114.70 crores in March 2023 to ₹278.22 crores in March 2025, nearly doubling in two years.

Operating profit margins improved notably, climbing from 4.36% in March 2023 to 7.66% in March 2025, signalling better cost control and operational leverage. Correspondingly, the profit after tax (PAT) rose from ₹59.93 crores to ₹146.37 crores over the same period, with the PAT margin expanding from 2.48% to 4.17%. This reflects the company’s ability to convert higher revenues into meaningful bottom-line growth despite competitive pressures and cost inflation.

Balance Sheet Strength and Capital Structure

Bansal Wire Inds’ balance sheet has strengthened considerably, with shareholder’s funds rising from ₹282.51 crores in March 2023 to ₹1,269.01 crores in March 2025. This growth was supported by a substantial increase in reserves, which grew from ₹273.41 crores to ₹1,190.73 crores, indicating retained earnings and capital infusion. The company’s equity capital also expanded, reflecting possible equity issuance or restructuring, rising from ₹9.10 crores to ₹78.28 crores.

Total liabilities increased from ₹749.05 crores in March 2023 to ₹2,168.36 crores in March 2025, driven primarily by higher current liabilities and borrowings. Short-term borrowings rose significantly from ₹225.12 crores to ₹471.59 crores, while long-term borrowings showed a mixed trend, peaking in March 2024 before declining to ₹136.46 crores by March 2025. The company’s total debt stood at ₹608.05 crores in March 2025, slightly lower than the previous year, suggesting active debt management.

On the asset side, net block (fixed assets) increased substantially from ₹115.51 crores to ₹692.76 crores, supported by capital work in progress, which also rose sharply. This indicates ongoing investments in capacity expansion or modernisation. Current assets nearly doubled from ₹545.32 crores to ₹1,270.01 crores, driven by higher inventories and sundry debtors, reflecting increased operational scale.

Cash Flow and Operational Efficiency

Cash flow from operating activities has been volatile, with a negative ₹150 crores in March 2025 compared to a positive ₹102 crores in March 2023. This was largely due to significant changes in working capital, which saw a negative swing of ₹366 crores in the latest year. Investing activities consistently absorbed cash, reflecting ongoing capital expenditure, with outflows increasing from ₹87 crores in March 2023 to ₹444 crores in March 2025.

Financing activities provided substantial inflows, particularly in the last two years, with ₹595 crores raised in March 2025, likely to support expansion and debt servicing. Despite these fluctuations, the company maintained a stable closing cash balance of ₹1 crore in March 2025, indicating prudent liquidity management.

Overall, Bansal Wire Inds has shown a commendable historical performance marked by strong revenue growth, improving profitability, and a solidifying balance sheet. While working capital management and cash flow remain areas to monitor, the company’s strategic investments and margin expansion position it well for future growth.

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