Revenue and Profit Trends
Chemcon Special.'s net sales have demonstrated notable volatility, peaking at over ₹300 crores in fiscal years 2019 and 2023 before declining to approximately ₹207 crores in the latest fiscal year ending March 2025. This downward trend in sales over the last two years contrasts with earlier growth phases, reflecting potential market or operational challenges.
Despite fluctuations in revenue, the company has maintained a positive operating profit margin, though it has contracted from a high of over 33% in fiscal 2021 to around 15.8% in fiscal 2025. Operating profit excluding other income decreased significantly from ₹81 crores in 2021 to ₹33 crores in 2025, indicating pressure on core earnings. However, other income has provided a supplementary boost, contributing over ₹14 crores in the latest year, which helped sustain overall operating profit at ₹47 crores.
Profit after tax (PAT) has mirrored these trends, with a peak of nearly ₹63 crores in 2022, followed by a decline to ₹24 crores in 2025. Correspondingly, the PAT margin has narrowed from above 24% to under 12% in the same period. Earnings per share (EPS) also reflect this pattern, falling from a high of over ₹17 in 2022 to ₹6.67 in 2025, signalling reduced profitability per share.
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Cost Structure and Margins
The company's raw material costs have shown significant variation, peaking at over ₹204 crores in 2024 before dropping sharply to ₹117 crores in 2025. This volatility has impacted gross profit margins, which have declined from over 35% in 2022 to just above 21% in 2025. Employee costs have risen moderately over the years, reaching nearly ₹20 crores in 2023 and slightly decreasing to ₹19.5 crores in 2025. Other expenses have steadily increased, reaching ₹34.6 crores in the latest fiscal year, further pressuring profitability.
Interest expenses have remained relatively low and stable, around ₹3.5 crores in recent years, while depreciation has increased in line with asset growth, reaching over ₹10 crores in 2025. These factors combined have contributed to a reduced profit before tax, which fell from ₹84 crores in 2022 to ₹33 crores in 2025.
Balance Sheet and Financial Position
Chemcon Special. has strengthened its shareholder's funds consistently, rising from ₹146 crores in 2020 to over ₹500 crores in 2025. This growth reflects accumulated reserves and retained earnings, which have more than quadrupled over the period. The company's equity capital has remained stable at ₹36.63 crores since 2021, with a face value of ₹10 per share.
Long-term borrowings have been significantly reduced from ₹14.6 crores in 2020 to under ₹0.2 crores in 2025, indicating a strong deleveraging trend. However, short-term borrowings remain elevated at ₹24.5 crores in 2025, down from a peak of over ₹63 crores in 2023. Total debt has decreased from a high of nearly ₹64 crores in 2023 to ₹24.7 crores in 2025, improving the company’s leverage profile.
On the asset side, net block (fixed assets) has more than doubled from ₹47 crores in 2020 to nearly ₹149 crores in 2025, reflecting ongoing capital investments. Capital work in progress has also increased substantially, signalling expansion or upgrade activities. Current assets have remained robust, with cash and bank balances consistently high, peaking at ₹224 crores in 2022 and settling at ₹142 crores in 2025, supporting liquidity.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has fluctuated considerably, with a peak of ₹74 crores in 2022 and a low of ₹11 crores in 2024, before recovering to ₹40 crores in 2025. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure, with the highest outflow of ₹152 crores in 2021. Financing activities have varied, with inflows in some years and outflows in others, including a ₹21 crore outflow in 2025, indicating repayments or dividend payments.
Net cash inflow/outflow has been mostly positive or neutral, except for a notable ₹37 crore outflow in 2024. The company’s closing cash and cash equivalents have remained stable at ₹7 crores in the latest two years, after a high of ₹44 crores in 2023, suggesting prudent cash management amid operational challenges.
Summary of Historical Performance
Overall, Chemcon Special. has demonstrated resilience through fluctuating sales and profit margins, supported by strong balance sheet growth and deleveraging efforts. While recent years have seen a decline in revenue and profitability, the company’s robust reserves, controlled debt levels, and steady cash flows provide a solid foundation for future growth. Investors should weigh the recent contraction in earnings against the company’s asset base expansion and liquidity position when considering its long-term prospects.
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