Revenue and Profitability Trends
Dipna Pharmachem's net sales have demonstrated considerable volatility. The company recorded a peak in the fiscal year ending March 2022 with net sales reaching ₹727.56 crores, a substantial increase from ₹31.00 crores in March 2021. However, this surge was not sustained, as sales declined sharply to ₹99.93 crores in March 2023, followed by a moderate recovery to ₹164.34 crores in March 2024, and then a drop to ₹124.92 crores in March 2025.
Total operating income mirrored this pattern, with the highest figure in March 2022 at ₹727.56 crores, before settling to more modest levels in subsequent years. The company's expenditure profile shifted notably, with raw material costs being significant only in March 2022 (₹676.67 crores), while purchase of finished goods became a major expense in other years, peaking at ₹176.35 crores in March 2024.
Operating profit (PBDIT) excluding other income peaked at ₹22.00 crores in March 2022 but declined sharply thereafter, stabilising around ₹3.4 crores in the last two reported years. Profit after tax (PAT) followed a similar trend, with a high of ₹11.67 crores in March 2022, falling to under ₹1.1 crores in the most recent years. Correspondingly, earnings per share (EPS) showed extreme variation, with an anomalous spike in March 2022, followed by a return to lower levels around ₹0.4 to ₹0.76 in other years.
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Balance Sheet and Financial Position
Examining the balance sheet, Dipna Pharmachem's shareholder funds have grown steadily from ₹0.57 crores in March 2021 to ₹38.49 crores in March 2025, indicating an improvement in net worth. The equity capital also increased significantly, reflecting possible capital infusion or stock issuance over the years. Total liabilities have expanded in line with assets, reaching ₹132.38 crores by March 2025, up from ₹24.79 crores in March 2021.
The company’s debt profile shows a rise in total debt from ₹12.43 crores in March 2021 to ₹17.22 crores in March 2025, with both long-term and short-term borrowings contributing to this increase. Trade payables and current liabilities have also grown, signalling higher operational scale but also increased obligations.
On the asset side, current assets have expanded markedly, from ₹24.75 crores in March 2021 to ₹132.33 crores in March 2025, driven by increases in inventories, sundry debtors, and short-term loans and advances. Fixed assets remain minimal and stable, with net block values around ₹0.04 to ₹0.05 crores, indicating limited capital expenditure on property, plant, and equipment.
Cash Flow and Operational Efficiency
Cash flow statements reveal persistent challenges in operating cash flow, with negative cash flow from operating activities in recent years, including a ₹9.00 crore outflow in March 2025. Changes in working capital have been a significant drag, reflecting increased inventory and receivables. Financing activities have fluctuated, with a notable inflow of ₹26.00 crores in March 2023 but a ₹4.00 crore outflow in March 2025, suggesting variable capital raising and repayment patterns.
Operating profit margins have remained modest, hovering between 2.09% and 3.02% over the last five years, while PAT margins have been below 1% in recent years, indicating tight profitability despite revenue fluctuations.
Summary of Historical Performance
Overall, Dipna Pharmachem's historical performance is characterised by a dramatic revenue spike in 2022, followed by a reversion to lower sales levels. Profitability has been constrained in recent years, with slim margins and modest net profits. The balance sheet shows growth in equity and assets but also rising debt and liabilities. Cash flow challenges persist, particularly in operations, which may require strategic focus to improve liquidity and operational efficiency going forward.
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