Revenue and Profit Growth
Over the seven-year period ending March 2025, Dynacons Sys. has seen its net sales surge from ₹310.73 crores in 2019 to ₹1,267.22 crores in 2025, reflecting a robust compound annual growth rate. This steady increase underscores the company’s expanding market presence and operational scale. Correspondingly, the total operating income mirrored this growth, with no other operating income reported, indicating a primary reliance on core business activities.
Operating profit before depreciation and interest (PBDIT) excluding other income rose significantly from ₹12.09 crores in 2019 to ₹105.29 crores in 2025. Including other income, operating profit reached ₹112.00 crores in the latest fiscal year, up from ₹13.27 crores six years prior. This improvement is also reflected in the operating profit margin, which expanded from 3.89% in 2019 to 8.31% in 2025, signalling enhanced operational efficiency.
Profit after tax (PAT) exhibited a similar upward trend, climbing from ₹5.17 crores in 2019 to ₹72.49 crores in 2025. The PAT margin improved from a modest 1.66% to a more respectable 5.72%, indicating better cost management and profitability. Earnings per share (EPS) followed suit, rising from ₹5.64 to ₹56.87, rewarding shareholders with substantial value creation over the period.
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Cost Structure and Expenditure
The company’s raw material costs have scaled in line with revenue, rising from ₹269.77 crores in 2019 to ₹1,090.17 crores in 2025. Despite this, the firm has managed to improve its gross profit margin from 2.61% to 7.8%, reflecting better pricing power or cost control. Employee costs have increased steadily but remain a relatively small portion of total expenditure, which itself has grown from ₹298.64 crores to ₹1,161.93 crores excluding depreciation.
Interest expenses have fluctuated but remained manageable, with ₹13.21 crores reported in 2025 compared to ₹5.15 crores in 2019. Depreciation charges have increased modestly, consistent with asset growth. Overall, the company’s gross profit before tax has expanded substantially, supporting stronger bottom-line results.
Balance Sheet and Asset Base
Dynacons Sys. has significantly strengthened its balance sheet, with shareholder’s funds rising from ₹37.03 crores in 2020 to ₹230.97 crores in 2025. Total reserves have grown in tandem, indicating retained earnings accumulation and capital retention. The company’s total liabilities have increased from ₹122.93 crores in 2020 to ₹776.13 crores in 2025, reflecting expanded operations and possibly increased working capital requirements.
Long-term borrowings have decreased from a peak of ₹15.96 crores in 2023 to ₹2.86 crores in 2025, suggesting a reduction in long-term debt reliance. Conversely, short-term borrowings have increased, possibly to support operational liquidity. Trade payables and other current liabilities have also risen, consistent with higher business volumes.
On the asset side, total assets have grown from ₹122.93 crores in 2020 to ₹776.13 crores in 2025. Notably, current assets have expanded substantially, driven by increases in inventories, sundry debtors, and cash balances. Capital work in progress surged to ₹24.07 crores in 2025, indicating ongoing investment in fixed assets. The book value per share has improved markedly from ₹40.36 in 2020 to ₹181.51 in 2025, reflecting enhanced net asset value per share.
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Cash Flow and Liquidity
Cash flow from operating activities has shown a positive trend, increasing from ₹4 crores in 2020 to ₹66 crores in 2025. Despite some fluctuations in working capital changes, the company has maintained positive cash flow after adjustments, with a net cash inflow of ₹31 crores in 2025. Investing activities have seen outflows, particularly in the latest year, reflecting capital expenditure and asset investments. Financing activities have generally been negative in recent years, indicating debt repayments or dividend payments.
Closing cash and cash equivalents have risen significantly, from ₹3 crores in 2020 to ₹34 crores in 2025, enhancing liquidity and financial flexibility. This improved cash position supports the company’s ongoing growth initiatives and operational needs.
Conclusion
In summary, Dynacons Sys. has exhibited strong historical performance characterised by consistent revenue growth, improving profitability margins, and a robust balance sheet. The company’s ability to enhance earnings per share and book value per share over the years highlights effective capital utilisation and shareholder value creation. While liabilities have increased to support expansion, the firm has managed its debt prudently, maintaining a healthy liquidity position. These factors collectively position Dynacons Sys. as a resilient and growing enterprise within its sector.
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