Revenue Growth and Operating Performance
Betex India’s net sales have shown a consistent upward trend, increasing from ₹46.37 crores in March 2019 to ₹96.38 crores by March 2025. This near doubling of sales over six years reflects the company’s expanding market presence and operational scale. Total operating income mirrors this growth, as other operating income remained negligible throughout the period.
Raw material costs have naturally risen in line with sales, reaching ₹39.53 crores in the latest fiscal year, while employee costs have also increased steadily, indicating investment in human resources to support growth. Other expenses have more than tripled since 2019, suggesting rising operational overheads that the company has had to manage carefully.
Operating profit before other income (PBDIT excl. OI) peaked at ₹5.90 crores in March 2024 but declined to ₹3.71 crores in March 2025, reflecting margin pressures. Operating profit margins excluding other income have fluctuated, with a high of 7.46% in 2021 and a low of 0.61% in 2022, settling at 3.85% in 2025. This volatility indicates challenges in cost control or pricing power amid changing market conditions.
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Profitability and Earnings Trends
Profit before tax (PBT) has generally trended upwards, rising from ₹0.97 crores in 2019 to ₹2.72 crores in 2025, despite some dips in intermediate years. Correspondingly, profit after tax (PAT) increased from ₹0.98 crores in 2019 to ₹1.95 crores in 2025, with a peak of ₹3.33 crores in 2024. Earnings per share (EPS) have reflected this pattern, reaching ₹13.0 in 2025 after a high of ₹22.2 in 2024.
However, PAT margins have been relatively modest, fluctuating between 0.71% and 4.24% over the period, and settling at 2.02% in 2025. This suggests that while the company has grown its top line, profitability has faced pressures, possibly from rising costs or competitive dynamics.
Balance Sheet Strength and Capital Structure
Shareholders’ funds have strengthened steadily, increasing from ₹23.19 crores in 2020 to ₹34.10 crores in 2025, supported by rising reserves. The book value per share has improved correspondingly, from ₹151.25 in 2020 to ₹224.02 in 2025, indicating enhanced net asset value for investors.
Long-term borrowings have declined significantly from ₹8.50 crores in 2020 to ₹1.17 crores in 2025, reflecting a reduction in financial leverage and potentially lower interest costs. Total debt has also decreased from ₹11.21 crores in 2020 to ₹2.58 crores in 2025, signalling improved financial stability.
On the asset side, net block (fixed assets net of depreciation) has increased from ₹5.30 crores in 2020 to ₹7.98 crores in 2025, indicating ongoing capital investment. Non-current investments have remained stable around ₹7.6 crores, while current assets have grown from ₹34.32 crores in 2020 to ₹40.90 crores in 2025, supporting operational liquidity.
Cash Flow and Liquidity Position
Cash flow from operating activities has been positive in most years, with ₹1 crore generated in 2025, though this is a decline from ₹12 crores in 2024. Investing activities have consistently been cash outflows, reflecting capital expenditure and investments. Financing activities have mostly been cash outflows as well, indicating debt repayments and possibly dividend payments.
Closing cash and cash equivalents stood at ₹6 crores in 2025, down from ₹9 crores in 2024 but higher than earlier years, suggesting a reasonable liquidity buffer to meet short-term obligations.
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Summary and Investor Considerations
Overall, Betex India has exhibited a commendable growth in sales and net worth over the past six years, with a near doubling of revenue and a steady increase in shareholder equity. The company has successfully reduced its debt burden, enhancing financial stability. However, profitability margins have been inconsistent, with operating and net margins showing volatility and a downward trend in the most recent year.
Investors should note the company’s improving asset base and liquidity position, which provide a solid foundation for future growth. Yet, the pressure on margins and fluctuating earnings per share highlight the need for careful monitoring of cost management and market conditions. The steady rise in book value per share is a positive indicator of value creation over time.
In conclusion, Betex India’s historical performance reflects a company in expansion mode with improving financial health, albeit facing challenges in sustaining profitability margins. This balanced view can assist investors in making informed decisions based on the company’s evolving fundamentals and market environment.
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