How has been the historical performance of DEE Development?

Revenue and Profit Growth

DEE Development’s net sales have shown a robust increase from ₹595.50 crores in the fiscal year ending March 2023 to ₹827.36 crores in March 2025. This represents a compound growth trend, reflecting the company’s expanding market presence and operational scale. Total operating income mirrored this growth, rising in tandem with net sales, as the company reported no other operating income during this period.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved significantly, climbing from ₹69.18 crores in March 2023 to ₹123.76 crores in March 2025. Including other income, operating profit reached ₹144.66 crores in the latest fiscal year, up from ₹88.00 crores two years prior. This improvement was supported by a rise in operating profit margin from 11.62% to 14.96%, indicating enhanced operational efficiency.

Profit before tax surged from ₹20.37 crores in March 2023 to ₹55.35 crores in March 2025, while profit after tax more than tripled from ₹12.97 crores to ₹43.63 crores over the same period. The PAT margin also improved notably, rising from 2.18% to 5.27%, underscoring stronger bottom-line performance despite rising expenses.

Cost Structure and Margins

The company’s cost of raw materials increased from ₹226.10 crores in March 2023 to ₹296.67 crores in March 2025, reflecting higher input costs aligned with revenue growth. However, other expenses showed a mixed trend, decreasing from ₹274.19 crores in March 2024 to ₹176.29 crores in March 2025, which helped contain overall expenditure. Employee costs rose steadily, consistent with business expansion.

Despite these cost pressures, DEE Development managed to improve its gross profit margin from 9.76% in March 2023 to 12.66% in March 2025, signalling better pricing power or cost control. Interest expenses remained relatively stable around ₹40 crores, while depreciation increased moderately, reflecting ongoing capital investments.

Balance Sheet Strength and Asset Base

Shareholders’ funds nearly doubled from ₹423.64 crores in March 2023 to ₹800.57 crores in March 2025, supported by equity capital increases and reserves accumulation. The company’s total assets expanded from ₹963.06 crores to ₹1,593.50 crores over the same period, driven by growth in both current and non-current assets.

Notably, capital work in progress surged to ₹148.14 crores in March 2025 from just ₹3.49 crores two years earlier, indicating significant ongoing investments. Inventories and sundry debtors also increased, consistent with higher business volumes. Total liabilities rose but remained proportionate to asset growth, with total debt slightly decreasing from ₹438.35 crores in March 2024 to ₹409.00 crores in March 2025.

Book value per share improved from ₹79.87 in March 2023 to ₹115.93 in March 2025, reflecting enhanced net worth and shareholder value.

Cash Flow and Liquidity

Cash flow from operating activities showed volatility, with a negative outflow of ₹60 crores in March 2025 contrasting with positive inflows in previous years. This was largely due to significant changes in working capital, which saw a sharp increase in utilisation. Investing activities consistently reflected outflows, aligned with capital expenditure and asset growth.

Financing activities provided strong inflows in the latest fiscal year, supporting the company’s investment and working capital needs. Despite these fluctuations, the net cash position remained stable, with closing cash and cash equivalents rising to ₹5 crores in March 2025 from ₹1 crore in March 2023.

Summary of Historical Performance

Over the three-year period ending March 2025, DEE Development has exhibited strong revenue growth, with net sales rising by nearly 39% from March 2023 to March 2025. Profitability metrics improved substantially, with operating and net profit margins expanding, reflecting better cost management and operational leverage. The company’s balance sheet strengthened considerably, with shareholders’ funds almost doubling and a healthy increase in asset base driven by capital investments.

While cash flow from operations showed some strain in the latest year due to working capital demands, financing activities have effectively supported the company’s growth initiatives. Overall, DEE Development’s historical financial performance indicates a company on a growth trajectory with improving fundamentals and a solid foundation for future expansion.

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