How has been the historical performance of Craftsman Auto?

Revenue and Profit Growth

Over the period from March 2020 to March 2025, Craftsman Auto’s net sales surged from ₹1,492.46 crores to ₹5,690.48 crores, representing a near fourfold increase. This substantial growth underscores the company’s expanding market presence and operational scale. Total operating income mirrored this trend, rising consistently each year without any other operating income reported.

Profitability also improved markedly. The consolidated net profit climbed from ₹40.01 crores in March 2020 to ₹194.57 crores in March 2025. Earnings per share (EPS) followed suit, increasing from ₹19.89 to ₹81.55 over the same period. However, it is notable that the profit after tax margin declined from 7.58% in March 2024 to 3.53% in March 2025, indicating some pressure on profitability despite higher absolute profits.

Cost Structure and Margins

Raw material costs rose in line with sales, reaching ₹3,296.73 crores in March 2025 from ₹571.71 crores in March 2020. Other expenses also increased significantly, reflecting the company’s scaling operations. Operating profit before depreciation and interest (PBDIT) excluding other income peaked at ₹832.71 crores in March 2025, though it showed a slight dip compared to the previous year’s ₹878.83 crores. Operating profit margins have contracted from a high of 28.09% in March 2021 to 14.63% in March 2025, suggesting rising costs or competitive pressures impacting operational efficiency.

Balance Sheet Strength and Asset Growth

Craftsman Auto’s total assets expanded impressively from ₹2,307.28 crores in March 2020 to ₹7,116.44 crores in March 2025. This growth was supported by a rise in net block assets from ₹1,437.32 crores to ₹3,285.13 crores, alongside increased capital work in progress, signalling ongoing investments in capacity and infrastructure.

Shareholders’ funds more than tripled, reaching ₹2,856.74 crores in March 2025 from ₹721.59 crores in March 2020, reflecting retained earnings and reserves accumulation. The book value per share also rose substantially from ₹358.64 to ₹1,197.29, indicating enhanced net worth per share for investors.

Debt and Liabilities

The company’s total debt increased from ₹912.55 crores in March 2020 to ₹2,054.26 crores in March 2025, with long-term borrowings constituting the majority. While this rise in leverage supports expansion, it also necessitates careful monitoring of interest costs, which have increased but remain manageable relative to operating profits.

Cash Flow and Liquidity

Operating cash flow showed a positive trend, rising from ₹306 crores in March 2020 to ₹283 crores in March 2025, with some fluctuations in between. The company has consistently invested heavily in capital expenditure, as reflected in negative cash flow from investing activities, reaching ₹-1,642 crores in March 2025. Financing activities have largely offset this, with significant inflows in recent years supporting growth initiatives.

Closing cash and cash equivalents stood at ₹97 crores in March 2025, up from ₹59 crores in March 2020, indicating a stable liquidity position despite aggressive expansion.

Summary

In summary, Craftsman Auto’s historical performance reflects a company in strong growth mode, with revenues and profits expanding significantly over six years. While margins have compressed somewhat, the firm’s asset base and shareholder equity have grown robustly, supported by sustained investments and manageable debt levels. Cash flow trends indicate ongoing capital expenditure balanced by financing inflows, maintaining liquidity. Investors should weigh the impressive growth against margin pressures and rising leverage when considering the company’s future prospects.

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