Revenue and Profit Growth
Over the three-year period ending March 2025, Deepak Builders’ net sales have shown a robust increase, rising from ₹433.46 crores in March 2023 to ₹581.79 crores in March 2025. This represents a compound growth rate that underscores the company’s expanding market presence and operational scale. Total operating income mirrored this growth, with no other operating income reported, indicating that core business activities are the primary revenue drivers.
Despite rising raw material costs, which increased from ₹289.08 crores in March 2023 to ₹336.85 crores in March 2025, the company managed to maintain a healthy operating profit margin. Operating profit before depreciation and interest (PBDIT) excluding other income nearly doubled from ₹50.89 crores in March 2023 to ₹110.70 crores in March 2025, reflecting improved operational efficiency and cost management.
Profit after tax (PAT) also exhibited significant growth, climbing from ₹21.40 crores in March 2023 to ₹56.75 crores in March 2025. However, the PAT margin showed a slight contraction from 11.81% in March 2024 to 9.75% in March 2025, suggesting some pressure on net profitability despite higher absolute profits. Earnings per share (EPS) followed a similar pattern, rising from ₹5.96 in March 2023 to ₹12.18 in March 2025, though it dipped from ₹16.84 in the previous year.
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Balance Sheet and Financial Position
Deepak Builders’ balance sheet has strengthened considerably, with shareholder’s funds increasing from ₹100.54 crores in March 2023 to ₹412.85 crores in March 2025. This growth is largely driven by a substantial rise in reserves, which surged from ₹64.66 crores to ₹366.27 crores over the same period, indicating retained earnings and capital accumulation.
The company’s total liabilities have also expanded, reaching ₹831.95 crores in March 2025 from ₹449.30 crores in March 2023. Long-term borrowings increased moderately, while short-term borrowings rose from ₹63.39 crores to ₹80.56 crores, reflecting a balanced approach to financing growth. Notably, the book value per share nearly tripled from ₹25.86 to ₹87.34, signalling enhanced net asset value per equity share.
On the asset side, total assets grew from ₹449.30 crores to ₹831.95 crores, supported by increases in both non-current and current assets. Inventories and sundry debtors rose significantly, consistent with the company’s expanding operations. Cash and bank balances improved to ₹9.48 crores by March 2025, up from ₹3.17 crores two years prior.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been volatile, with a negative outflow of ₹131 crores in March 2025 compared to a positive inflow of ₹12 crores in March 2023. This shift is primarily due to substantial increases in working capital requirements, which rose sharply to ₹221 crores in March 2025. Despite this, the company managed positive net cash inflows overall, aided by financing activities that contributed ₹152 crores in the latest year.
Investing activities consistently showed outflows, reflecting ongoing capital expenditure and asset acquisitions. The company’s gross block and net block values have steadily increased, indicating continued investment in fixed assets to support growth.
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Summary and Outlook
Overall, Deepak Builders has exhibited commendable growth in revenue and profitability over the past three years, supported by a strengthening balance sheet and increased shareholder equity. While margins have experienced some compression, the company’s ability to scale operations and invest in assets bodes well for future expansion. The rise in working capital demands and negative operating cash flow in the latest year warrant close monitoring, but financing inflows have so far mitigated liquidity concerns.
Investors should weigh these factors alongside sector dynamics and market conditions when considering Deepak Builders as a potential investment. The company’s historical performance reflects a solid foundation, though evolving operational efficiencies and capital management will be key to sustaining growth momentum.
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