Revenue and Profitability Trends
Over the fiscal years ending March 2022 to March 2025, Concord Drugs’ net sales have shown a downward trend, decreasing from ₹59.06 crores in March 2022 to ₹45.25 crores in March 2025. This represents a significant contraction in top-line revenue, with the most notable drop occurring between March 2022 and March 2023. The absence of other operating income throughout this period indicates that the company’s revenue streams have been solely reliant on its core sales operations.
Correspondingly, the total expenditure excluding depreciation has also declined, from ₹53.37 crores in March 2022 to ₹41.11 crores in March 2025, reflecting cost adjustments in line with reduced sales. Raw material costs, a major expense component, fell from ₹44.41 crores to ₹35.81 crores over the same period, while employee costs fluctuated but remained relatively stable around ₹4.63 to ₹6.08 crores.
Operating profit before depreciation and interest (PBDIT) has mirrored the revenue decline, dropping from ₹5.69 crores in March 2022 to ₹4.14 crores in March 2025. Despite this, the operating profit margin has remained fairly consistent, hovering around 9%, suggesting some operational efficiency in managing costs relative to sales.
However, interest expenses have increased marginally from ₹1.68 crores to ₹2.03 crores, which, combined with depreciation charges, has compressed the profit before tax from ₹2.25 crores in March 2022 to just ₹0.69 crores in March 2025. The net profit after tax has similarly declined, falling from ₹1.59 crores to ₹0.34 crores, with the profit after tax margin shrinking from 2.7% to 0.75% over the four-year span.
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Balance Sheet and Asset Management
Concord Drugs’ total assets have grown steadily from ₹56.45 crores in March 2022 to ₹65.14 crores in March 2025, indicating ongoing investment in the business despite revenue pressures. The net block of fixed assets has decreased slightly from ₹13.33 crores to ₹11.57 crores, while capital work in progress has increased, suggesting ongoing capital expenditure projects.
Non-current assets have expanded notably, rising from ₹14.55 crores to ₹24.38 crores, driven largely by increases in other non-current assets. Current assets have also increased from ₹41.89 crores to ₹40.76 crores, with inventories rising significantly from ₹17.49 crores to ₹25.27 crores, which may reflect stockpiling or slower inventory turnover.
On the liabilities side, total debt has increased from ₹15.65 crores to ₹17.19 crores, with short-term borrowings constituting the majority and rising from ₹13.95 crores to ₹15.87 crores. Shareholders’ funds have grown from ₹28.36 crores to ₹34.11 crores, supported by steady increases in reserves, indicating retained earnings accumulation despite lower profitability.
Cash Flow and Financial Health
Cash flow from operating activities has been modest, with a positive ₹3 crores in March 2025 compared to negligible or zero cash flows in prior years. Investing activities have consistently resulted in cash outflows, reflecting ongoing capital investments. Financing activities have seen minor outflows recently, contrasting with a small inflow in March 2022.
The company’s cash and bank balances remain minimal, under ₹0.25 crores, highlighting limited liquidity buffers. The book value per share has shown a gradual increase from ₹32.44 in March 2022 to ₹34.11 in March 2025, reflecting incremental growth in net asset value per share.
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Summary and Investor Considerations
In summary, Concord Drugs has faced a challenging period marked by declining sales and profitability, though it has maintained operational margins and grown its asset base. The increase in debt and inventories alongside modest cash flows suggests cautious financial management amid a competitive pharmaceutical landscape. Investors should weigh the company’s stable operating margins and asset growth against the pressures on net profits and liquidity constraints when considering its historical performance and future prospects.
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