Revenue and Profit Growth
Over the fiscal years ending March 2023 to March 2025, Cyient DLM’s net sales surged from ₹832.03 crores to ₹1,519.63 crores, representing a compound annual growth rate of approximately 38%. This substantial increase underscores the company’s expanding market presence and demand for its products. Total operating income mirrored this trend, with no other operating income reported during this period.
Operating profit before other income (PBDIT excl. other income) rose steadily from ₹87.78 crores in March 2023 to ₹137.18 crores in March 2025. Including other income, operating profit (PBDIT) increased from ₹94.09 crores to ₹163.34 crores, highlighting improved operational efficiency and additional income streams. Profit before tax nearly doubled from ₹43.16 crores to ₹91.72 crores, while profit after tax more than doubled from ₹31.73 crores to ₹68.08 crores, reflecting strong bottom-line growth.
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Cost Structure and Margins
The company’s total expenditure excluding depreciation rose in line with revenue, from ₹744.25 crores in March 2023 to ₹1,382.45 crores in March 2025. Raw material costs formed the largest component, increasing from ₹634.15 crores to ₹1,086.94 crores. Employee costs nearly tripled, reflecting workforce expansion and wage inflation, while other expenses also more than doubled.
Despite rising costs, operating profit margins excluding other income remained relatively stable, though slightly compressed from 10.55% in March 2023 to 9.03% in March 2025. The profit after tax margin improved from 3.81% to 4.48% over the same period, indicating better cost control and profitability enhancement.
Balance Sheet and Financial Position
Cyient DLM’s balance sheet reveals a strengthening financial foundation. Shareholder’s funds increased substantially from ₹197.87 crores in March 2023 to ₹949.43 crores in March 2025, supported by a rise in reserves from ₹145.01 crores to ₹870.13 crores. The book value per share also improved markedly, rising from ₹37.43 to ₹119.72, signalling enhanced net asset value per equity share.
Total liabilities grew from ₹1,099.34 crores to ₹1,680.70 crores, with long-term borrowings increasing from ₹99.56 crores to ₹148.01 crores and short-term borrowings decreasing from ₹214.91 crores to ₹95.75 crores, indicating a shift towards longer-term debt. The company’s net block of fixed assets more than doubled, reflecting capital investments and asset expansion.
Cash Flow Dynamics
Cash flow from operating activities showed a negative trend in the last two years, with outflows of ₹62 crores in March 2025 and ₹70 crores in March 2024, compared to an inflow of ₹53 crores in March 2023. This was largely due to significant increases in working capital requirements, which rose sharply to ₹197 crores in March 2025. However, investing activities turned positive in the latest year with ₹126 crores inflow, contrasting with outflows in previous years, possibly reflecting asset sales or investment realignments.
Financing activities saw a net outflow of ₹58 crores in March 2025 after a substantial inflow of ₹478 crores in March 2024, indicating repayment or restructuring of debt. Overall, the company managed to maintain a stable closing cash and cash equivalent balance of ₹47 crores in March 2025, up from ₹41 crores the previous year.
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Summary and Outlook
In summary, Cyient DLM has exhibited strong revenue growth and improved profitability over the past three years, supported by expanding operations and effective cost management. The company’s balance sheet has strengthened significantly, with higher reserves and shareholder equity, alongside prudent debt management. While cash flow from operations has faced headwinds due to working capital demands, overall liquidity remains stable.
Investors should note the slight compression in operating margins amid rising costs, but the consistent increase in net profit and book value per share signals a positive trajectory. The company’s ongoing capital investments and financial discipline position it well for sustained growth in the competitive industrial manufacturing sector.
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