Revenue and Operating Performance Trends
Over the seven-year period ending March 2025, C P C L's net sales demonstrated notable volatility. The company recorded a peak in net sales in fiscal 2023, reaching over ₹76,700 crores, before declining to approximately ₹59,350 crores in 2025. This decline followed a sharp increase from ₹22,445 crores in 2021 to ₹43,375 crores in 2022, reflecting a period of rapid growth and subsequent contraction. Total operating income mirrored this pattern, with no other operating income reported during these years.
Raw material costs consistently represented the largest expenditure, closely tracking revenue trends. For instance, raw material costs peaked at over ₹67,000 crores in 2023 before easing to ₹55,350 crores in 2025. Other expenses, including employee costs and miscellaneous charges, remained relatively stable, with employee costs hovering around ₹460 to ₹560 crores annually.
Operating profit before depreciation and interest (PBDIT) excluding other income showed a sharp rise from a loss in 2020 to a high of nearly ₹5,700 crores in 2023, before falling to just over ₹1,000 crores in 2025. This decline in operating profitability was accompanied by a modest increase in other income in 2025, which slightly cushioned the overall operating profit.
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Profitability and Margins
The company’s profit before tax (PBT) and profit after tax (PAT) figures reflect a recovery from losses in 2019 and 2020 to positive territory in subsequent years. PAT surged from a negative ₹2,083 crores in 2020 to a peak of ₹3,531 crores in 2023, before declining sharply to ₹155 crores in 2025. Earnings per share (EPS) followed a similar trajectory, with a high of over ₹237 in 2023 dropping to ₹14.38 in 2025.
Operating profit margins excluding other income peaked at 8.96% in 2021 but declined to 1.71% by 2025, signalling margin pressure in recent years. Similarly, PAT margins improved from negative levels in 2019 and 2020 to a peak of 4.6% in 2023, before contracting to 0.36% in 2025. These margin fluctuations highlight the challenges faced by the company in maintaining profitability amid changing market conditions.
Balance Sheet and Financial Position
C P C L’s balance sheet reveals a steady increase in shareholder’s funds from ₹1,359 crores in 2020 to over ₹8,200 crores in 2025, supported by rising reserves. The company’s total liabilities fluctuated, peaking at over ₹18,300 crores in 2024 before easing to ₹17,065 crores in 2025. Notably, long-term borrowings decreased significantly from ₹3,004 crores in 2021 to ₹158 crores in 2025, reflecting a reduction in debt burden.
Short-term borrowings showed volatility, rising sharply to ₹6,831 crores in 2022 before falling to ₹2,942 crores in 2025. The net block of fixed assets increased steadily, reaching approximately ₹7,325 crores in 2025, indicating ongoing capital investment. Meanwhile, total assets remained broadly stable around ₹17,000 crores in recent years.
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Cash Flow and Liquidity
Cash flow from operating activities showed a strong recovery from negative ₹620 crores in 2020 to ₹1,352 crores in 2025, reflecting improved operational cash generation. Investing activities consistently resulted in cash outflows, averaging around ₹600 crores annually, indicative of ongoing capital expenditure. Financing activities fluctuated, with significant outflows in recent years, including ₹519 crores in 2025, suggesting debt repayments or dividend payments.
Net cash inflow remained modest, with ₹183 crores recorded in 2025, while cash and bank balances increased to ₹375 crores, signalling a cautious liquidity position. The company’s book value per share rose substantially from ₹91 in 2020 to ₹551 in 2025, underscoring enhanced net asset value for shareholders.
Summary
In summary, C P C L has experienced a dynamic financial journey marked by strong revenue growth phases, followed by recent contractions. Profitability has been volatile, with margins under pressure in the latest fiscal year. The company has successfully reduced long-term debt while maintaining capital investments and improving shareholder equity. Operational cash flows have strengthened, supporting liquidity despite ongoing investing and financing outflows. Investors should consider these historical trends alongside current market conditions when evaluating C P C L’s prospects.
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