Revenue and Profitability Trends
Over the three-year period ending March 2022, D.P. Abhushan's net sales surged significantly, rising from ₹808.62 crores in March 2020 to ₹1,731.38 crores in March 2022. This represents a compound annual growth rate (CAGR) of approximately 42%, reflecting robust demand and effective market penetration. The total operating income mirrored this trend, with no other operating income reported, indicating that core business activities drove revenue growth.
Cost management has been a critical factor in the company's performance. Raw material costs increased in line with sales, from ₹159.57 crores in March 2020 to ₹443.62 crores in March 2022, while purchases of finished goods also rose substantially. Despite these rising costs, the operating profit before depreciation, interest, and tax (PBDIT) improved from ₹34.25 crores in March 2020 to ₹75.03 crores in March 2022, maintaining a stable operating profit margin around 4.3% in the latest year.
Profit before tax (PBT) more than doubled from ₹22.24 crores in March 2020 to ₹54.70 crores in March 2022, supported by controlled interest expenses and depreciation. The profit after tax (PAT) followed suit, increasing from ₹16.68 crores to ₹40.53 crores over the same period, with the PAT margin improving modestly to 2.34% in March 2022. Earnings per share (EPS) also reflected this upward trajectory, rising from ₹7.50 to ₹18.22, signalling enhanced shareholder value.
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Balance Sheet and Financial Position
D.P. Abhushan's balance sheet has strengthened notably, with shareholder's funds rising from ₹69.72 crores in March 2020 to ₹138.06 crores in March 2022. This growth was supported by a substantial increase in reserves, which more than doubled from ₹47.46 crores to ₹115.81 crores, reflecting retained earnings and capital accumulation.
The company's total liabilities increased moderately from ₹268.65 crores to ₹413.61 crores, with long-term borrowings rising from ₹5.11 crores to ₹27.44 crores, indicating some leveraging for expansion or working capital needs. Short-term borrowings remained elevated but stable, around ₹125-143 crores, while current liabilities showed a slight decline, suggesting improved working capital management.
On the asset side, total assets grew from ₹268.65 crores to ₹413.61 crores, driven by increases in both non-current and current assets. Net block assets expanded from ₹26.26 crores to ₹39.09 crores, signalling capital investments. Inventories rose steadily, consistent with higher sales volumes, while cash and bank balances fluctuated but remained modest relative to total assets.
Cash Flow and Operational Efficiency
Cash flow from operating activities showed improvement, turning positive at ₹16 crores in March 2022 after a negative cash flow of ₹29 crores in March 2021. This recovery was aided by better management of working capital, despite a negative change in working capital of ₹42 crores in the latest year. Investing activities consistently reflected outflows, indicative of ongoing capital expenditure, while financing activities saw a net outflow of ₹17 crores in March 2022, contrasting with a significant inflow in the prior year.
The net cash position declined slightly to ₹4 crores by March 2022, down from ₹11 crores the previous year, but the company maintained sufficient liquidity to support its operations and growth plans.
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Summary and Outlook
In summary, D.P. Abhushan has exhibited a solid historical performance characterised by strong revenue growth, improving profitability, and a healthier balance sheet over the past three years. The company’s ability to maintain stable operating margins amid rising costs and to enhance earnings per share underscores operational resilience. While debt levels have increased, they remain manageable relative to equity, and cash flow trends suggest improving operational efficiency.
Investors may find the company’s consistent growth and financial discipline encouraging, though monitoring working capital and debt management will be important going forward. Overall, D.P. Abhushan’s historical financials reflect a business on a steady growth path with potential for further value creation.
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