How has been the historical performance of Capacit'e Infra.?

Revenue and Profit Growth

Over the past six years, Capacit'e Infra. has seen its net sales rise from ₹879.72 crores in March 2021 to ₹2,349.51 crores in March 2025, representing a robust increase of nearly 167%. This growth underscores the company's expanding market presence and successful project execution. Operating profit before depreciation and interest (PBDIT) excluding other income also improved significantly, reaching ₹379.35 crores in the latest fiscal year, up from ₹136.48 crores in March 2021. Including other income, operating profit rose to ₹436.95 crores, reflecting enhanced operational efficiency and additional income streams.

Profit before tax surged from a modest ₹4.82 crores in March 2021 to ₹248.52 crores in March 2025, while profit after tax climbed from ₹1.77 crores to ₹187.17 crores over the same period. Consolidated net profit followed a similar trend, increasing from ₹1.53 crores to ₹202.56 crores, signalling a marked turnaround in the company's bottom line. Earnings per share (EPS) correspondingly improved from a negligible 0.23 to 23.94, highlighting enhanced shareholder value.

Cost Structure and Margins

The company’s total expenditure excluding depreciation rose in line with revenue, reaching ₹1,970.16 crores in March 2025 from ₹743.24 crores in March 2021. Raw material costs and manufacturing expenses were the largest components, reflecting the capital-intensive nature of the infrastructure sector. Employee costs also increased steadily, consistent with business expansion.

Operating profit margins excluding other income have remained relatively stable, fluctuating between 15.5% and 19.5% over the years, with a slight dip to 16.15% in the latest fiscal year. Gross profit margins improved from 10.8% in March 2021 to 14.62% in March 2025, indicating better cost control and pricing power. The profit after tax margin expanded significantly from a mere 0.17% in March 2021 to 8.67% in March 2025, reflecting improved profitability and operational leverage.

Balance Sheet Strength and Asset Base

Capacit'e Infra.’s shareholder funds have grown substantially, rising from ₹928.67 crores in March 2021 to ₹1,718.66 crores in March 2025. This increase is supported by a rise in reserves, which reached ₹1,634.06 crores, up from ₹860.78 crores in March 2021, signalling retained earnings accumulation and financial prudence.

Total liabilities increased to ₹3,500.08 crores in March 2025 from ₹2,245.56 crores in March 2021, reflecting the company’s growing scale and investment in projects. Long-term borrowings rose moderately to ₹149.06 crores, while short-term borrowings also increased to ₹267.60 crores, indicating a balanced approach to debt management. The company’s net block of fixed assets remained stable around ₹575 crores, showing consistent capital investment.

Cash Flow and Liquidity

Cash flow from operating activities showed variability, with a positive ₹51 crores in March 2025 but a negative ₹38 crores in the previous year, reflecting working capital fluctuations. The company managed to maintain positive net cash inflows in recent years, with ₹44 crores in March 2025, after a brief negative outflow in March 2024. Cash and bank balances stood at ₹93.89 crores, down from ₹209.41 crores the previous year, indicating utilisation of cash reserves for operations or investments.

Investing activities consistently reflected outflows, typical for a growing infrastructure firm, while financing activities varied, including a significant inflow of ₹181 crores in March 2024. Overall, the company’s liquidity position remains adequate to support ongoing operations and growth initiatives.

Summary and Outlook

Capacit'e Infra. has exhibited a commendable recovery and growth pattern over the last several years, with revenues and profits rising sharply from a low base in 2021. The company’s improving margins and expanding shareholder equity reflect operational improvements and effective capital management. While debt levels have increased, they remain manageable relative to the company’s asset base and earnings growth.

Investors should note the company’s fluctuating cash flows and working capital demands, which are typical in the infrastructure sector. However, the consistent rise in earnings per share and net profit margins suggests a strengthening business model. The company’s ability to sustain this growth trajectory will depend on continued project execution, cost control, and prudent financial management.

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