Revenue and Profitability Trends
Over the seven-year period ending March 2025, Bemco Hydraulics’ net sales exhibited a robust upward trend, rising from ₹48.28 crores in 2019 to ₹100.12 crores in 2025. This growth was not linear, with fluctuations observed in certain years, such as a dip in 2020 to ₹32.43 crores, likely reflecting broader market or operational challenges. However, the company rebounded strongly in subsequent years, nearly doubling sales between 2023 and 2025.
Operating profit margins have improved consistently, with the operating profit (PBDIT) margin excluding other income increasing from 10.48% in 2019 to 20.3% in 2025. This margin expansion underscores enhanced operational efficiency and cost management. Correspondingly, the profit after tax (PAT) margin rose from a modest 2.13% in 2019 to a healthy 12.52% in 2025, reflecting stronger bottom-line performance.
Profit after tax itself grew from ₹1.03 crores in 2019 to ₹12.54 crores in 2025, with a notable recovery from a slight loss in 2020. Earnings per share (EPS) also followed this positive trend, reaching ₹2.86 in 2025, indicating improved shareholder returns despite some volatility in earlier years.
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Cost Structure and Operational Efficiency
The company’s raw material costs have naturally increased in line with sales, rising from ₹21.65 crores in 2019 to ₹49.51 crores in 2025. However, the proportionate increase in operating income has allowed Bemco to maintain and improve its operating margins. Employee costs have also risen steadily, reflecting investment in human capital, from ₹9.20 crores in 2019 to ₹15.56 crores in 2025.
Other expenses have increased moderately but remain controlled relative to revenue growth. The company reported negligible manufacturing and selling expenses, indicating a streamlined cost base. Interest expenses have declined from ₹3.03 crores in 2019 to ₹2.31 crores in 2025, contributing positively to net profitability.
Balance Sheet and Financial Position
Bemco Hydraulics’ shareholder funds have expanded significantly, from ₹37.36 crores in 2021 to ₹70.12 crores in 2025, supported by rising reserves which reached ₹67.93 crores in 2025. This reflects retained earnings and a strengthening equity base. Total liabilities have increased but remain proportionate to asset growth, with total assets rising from ₹84.57 crores in 2021 to ₹135.53 crores in 2025.
Long-term borrowings have decreased from ₹6.07 crores in 2020 to ₹3.40 crores in 2025, signalling a reduction in financial leverage. Short-term borrowings have fluctuated but stood at ₹15.73 crores in 2025, down from a peak of ₹18.59 crores in 2024. The company’s net block of fixed assets has grown steadily, indicating ongoing capital investment.
Current assets have increased substantially, reaching ₹74.72 crores in 2025, driven by higher inventories and sundry debtors, which rose to ₹22.21 crores and ₹38.46 crores respectively. Cash and bank balances have also improved, standing at ₹9.00 crores in 2025, supporting liquidity.
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Cash Flow and Liquidity
Cash flow from operating activities has shown improvement, with a positive ₹13 crores in 2025 compared to a negative ₹7 crores in 2023. This recovery highlights better working capital management and operational cash generation. Investing activities have involved moderate outflows, consistent with capital expenditure, while financing activities have seen net outflows in recent years, reflecting debt repayments and prudent financial management.
Net cash inflow stood at ₹3 crores in 2025, improving from a negative position in 2023, and closing cash and cash equivalents increased to ₹6 crores, indicating a healthier liquidity position.
Summary
Overall, Bemco Hydraulics has exhibited a commendable historical performance characterised by strong revenue growth, margin expansion, and improved profitability. The company’s balance sheet has strengthened with rising equity and controlled debt levels, while cash flow metrics suggest enhanced operational efficiency and liquidity. Despite some volatility in earlier years, the recent financials portray a stable and growing enterprise well-positioned within its sector.
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