How has been the historical performance of Dharmaj Crop?

Revenue and Profitability Overview

For the fiscal year ending 31 March 2025, Dharmaj Crop reported net sales of ₹951.04 crores, with no additional operating income. The company’s total operating income matched this figure, reflecting a focused revenue stream. Raw material costs accounted for ₹595.83 crores, while purchases of finished goods added ₹172.03 crores to the expenditure. Notably, the company experienced a negative stock adjustment of ₹23.49 crores, indicating an increase in inventory levels.

Employee costs stood at ₹46.79 crores, and other expenses contributed ₹85.11 crores. The total expenditure excluding depreciation was ₹876.27 crores, resulting in an operating profit before depreciation, interest, and tax (PBDIT) of ₹74.77 crores. Including other income of ₹2.15 crores, the operating profit rose slightly to ₹76.92 crores, yielding an operating profit margin of 7.86%.

After accounting for interest expenses of ₹12.90 crores and depreciation of ₹18.27 crores, the profit before tax was ₹45.76 crores. Following tax provisions of ₹10.93 crores, the company posted a consolidated net profit of ₹34.83 crores, translating to a profit after tax margin of 3.66%. Earnings per share were reported at ₹10.3, consistent with the diluted EPS figure.

Balance Sheet and Financial Position

Dharmaj Crop’s balance sheet as of March 2025 reflects a shareholder’s fund base of ₹394.41 crores, up from ₹359.37 crores the previous year. This growth was supported by an increase in reserves from ₹325.57 crores to ₹360.61 crores, indicating retained earnings accumulation and strengthening equity. The company’s equity capital remained stable at ₹33.80 crores with a face value of ₹10 per share.

Total liabilities rose to ₹733.41 crores from ₹562.97 crores, driven primarily by an increase in current liabilities, which more than doubled to ₹268.64 crores. Short-term borrowings increased to ₹51.44 crores, while long-term borrowings decreased to ₹64.11 crores, reflecting a shift in debt maturity profile. Deferred tax assets improved to ₹4.45 crores from a negative position the prior year, contributing positively to net assets.

On the asset side, total assets grew to ₹733.41 crores from ₹562.97 crores. Current assets expanded significantly to ₹411.18 crores, supported by higher inventories of ₹138.49 crores and sundry debtors of ₹248.39 crores, both showing substantial increases compared to the previous year. Non-current assets remained largely unchanged at ₹322.23 crores. The book value per share improved to ₹116.7 from ₹106.33, signalling enhanced net worth per share.

Cash Flow and Operational Efficiency

Cash flow from operating activities showed marked improvement, rising to ₹38 crores from ₹7 crores in the prior year. This was supported by a positive cash flow after changes in working capital of ₹43 crores, despite a working capital outflow of ₹35 crores. Investing activities reflected a cash outflow of ₹32 crores, a reduction compared to the previous year’s ₹62 crores, indicating moderated capital expenditure or asset purchases.

Financing activities saw a net cash outflow of ₹8 crores, contrasting with a ₹57 crores inflow the year before, suggesting repayment or reduction of borrowings. The net cash position slightly declined by ₹2 crores, with closing cash and cash equivalents reported at zero, down from ₹3 crores at the start of the year.

Summary of Historical Performance

Overall, Dharmaj Crop’s historical performance for the fiscal year ending March 2025 reflects a company maintaining steady revenue levels with controlled expenditure, resulting in moderate profitability. The operating profit margin near 8% and a PAT margin of 3.66% indicate operational efficiency amid cost pressures. The balance sheet shows a solid equity base with improving reserves, though the rise in current liabilities and trade payables warrants monitoring for liquidity management.

Cash flow improvements from operations are encouraging, signalling better working capital management despite increased inventory and receivables. The company’s strategic reduction in long-term debt and stable capital structure provide a foundation for future growth. Investors should weigh these factors alongside sector dynamics and market conditions when considering Dharmaj Crop’s stock for their portfolios.

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