Revenue and Profit Trends
Ceigall India's net sales increased from ₹3,029.35 crores in the fiscal year ending March 2024 to ₹3,436.73 crores in March 2025, representing a growth of approximately 13.5%. This rise in top-line revenue was accompanied by a slight increase in total operating income, which stood at ₹3,436.73 crores in March 2025 compared to ₹3,029.35 crores the previous year. Despite this growth, the company’s operating profit margin (excluding other income) declined from 17.09% in March 2024 to 15.08% in March 2025, indicating some margin compression.
Operating profit (PBDIT) excluding other income remained relatively stable at ₹518.41 crores in March 2025, marginally higher than ₹517.66 crores in the prior year. Including other income, operating profit rose to ₹574.64 crores from ₹554.50 crores. However, interest expenses increased significantly from ₹94.15 crores to ₹134.40 crores, which contributed to a decrease in profit before tax from ₹405.35 crores to ₹384.59 crores. Consequently, the profit after tax declined from ₹304.31 crores to ₹286.57 crores, with consolidated net profit following a similar trend, falling from ₹306.14 crores to ₹294.02 crores.
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Cost Structure and Margins
The company’s raw material costs decreased slightly from ₹1,053.05 crores in March 2024 to ₹1,016.82 crores in March 2025, while manufacturing expenses rose sharply from ₹1,297.85 crores to ₹1,745.84 crores. Employee costs saw a notable reduction, falling from ₹61.98 crores to ₹39.89 crores. Other expenses increased moderately. These shifts in expenditure contributed to total expenditure (excluding depreciation) rising from ₹2,511.69 crores to ₹2,918.32 crores.
Gross profit margin contracted from 15.2% to 12.81%, and the profit after tax margin also declined from 10.05% to 8.34%, reflecting the impact of rising costs and interest expenses on overall profitability.
Balance Sheet and Financial Position
Ceigall India’s balance sheet reveals significant growth in shareholder funds, which more than doubled from ₹887.73 crores in March 2024 to ₹1,832.60 crores in March 2025. This was driven by a substantial increase in reserves, rising from ₹809.16 crores to ₹1,745.49 crores. Equity capital also increased from ₹78.57 crores to ₹87.10 crores, reflecting possible equity infusion or share issuance.
However, the company’s borrowings have risen considerably. Long-term borrowings increased from ₹918.77 crores to ₹1,182.81 crores, while short-term borrowings grew from ₹413.76 crores to ₹545.36 crores. Total liabilities surged from ₹2,583.26 crores to ₹4,243.34 crores, indicating a higher leverage position. Despite this, the book value per share nearly doubled from ₹56.49 to ₹105.20, signalling enhanced net asset value for shareholders.
Asset Growth and Liquidity
Total assets expanded robustly from ₹2,583.26 crores in March 2024 to ₹4,243.34 crores in March 2025. Non-current assets increased from ₹1,015.96 crores to ₹1,507.96 crores, supported by growth in gross block and capital work in progress. Current assets also rose sharply from ₹1,567.31 crores to ₹2,735.38 crores, with notable increases in sundry debtors and cash and bank balances, which reached ₹633.92 crores in March 2025 from ₹368.06 crores a year earlier.
Net current assets improved from ₹536.94 crores to ₹1,187.57 crores, enhancing the company’s short-term liquidity position. However, contingent liabilities remain elevated at over ₹1,000 crores, which investors should monitor closely.
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Cash Flow Overview
Cash flow from operating activities has been under pressure, with negative figures recorded in recent years. For the fiscal year ending March 2024, operating cash flow was negative ₹210 crores, worsening from previous years. Cash flow after changes in working capital also remained negative, reflecting increased working capital requirements. Investing activities consistently showed cash outflows, indicative of ongoing capital expenditure and asset investments.
Financing activities have provided positive cash inflows, with ₹274 crores raised in March 2024, supporting the company’s expansion and debt servicing. Net cash inflow was modest at ₹25 crores in March 2024, following a larger inflow of ₹119 crores in the prior year. Closing cash and cash equivalents improved to ₹242 crores in March 2024 from ₹216 crores in March 2023, signalling a cautious but stable liquidity position.
Summary
Overall, Ceigall India’s historical performance reflects a company in growth mode, with rising revenues and expanding asset base. Profitability margins have faced some headwinds due to increased costs and interest expenses, while leverage has grown substantially. The company’s improved book value per share and enhanced reserves indicate strengthening shareholder equity. Investors should weigh the benefits of growth and asset accumulation against margin pressures and higher debt levels when considering Ceigall India’s financial health and future prospects.
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