Revenue and Profit Growth Trajectory
Over the five-year period ending March 2025, Electronics Mart’s net sales have shown a robust upward trend, rising from ₹3,201.88 crores in March 2021 to ₹6,731.31 crores in March 2025. This represents more than a twofold increase, signalling strong demand and effective market penetration. The total operating income mirrors this growth, as other operating income remained negligible throughout.
Operating profit before depreciation, interest, and tax (PBDIT) also increased substantially, from ₹203.89 crores in March 2021 to ₹451.12 crores in March 2025, indicating improved operational efficiency despite rising expenses. However, the operating profit margin has seen slight variability, peaking at 7.15% in March 2024 before moderating to 6.7% in the latest fiscal year. This suggests that while revenues have grown, cost pressures have somewhat constrained margin expansion.
Profit after tax (PAT) rose from ₹58.62 crores in March 2021 to ₹160.49 crores in March 2025, reflecting a near tripling of net earnings. The PAT margin has fluctuated modestly, with a high of 2.93% in March 2024 and a recent dip to 2.38%, highlighting the impact of interest and depreciation costs on bottom-line profitability.
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Cost Structure and Expense Analysis
The company’s expenditure profile reveals that the purchase of finished goods constitutes the largest cost component, increasing from ₹2,846.91 crores in March 2021 to ₹6,007.31 crores in March 2025. This aligns with the revenue growth and inventory expansion. Other expenses have also risen steadily, reaching ₹413.29 crores in the latest year, reflecting increased operational activities.
Employee costs have grown in tandem with business scale, rising from ₹61.43 crores to ₹133.09 crores over the same period. Notably, there are no reported raw material or power costs, consistent with the company’s retail business model. Depreciation expenses have nearly doubled, indicating ongoing investments in fixed assets and infrastructure.
Balance Sheet Strength and Asset Growth
Electronics Mart’s total assets have expanded significantly, from ₹1,511.95 crores in March 2021 to ₹3,656.83 crores in March 2025. This growth is driven by increases in both non-current assets, which include net block and capital work in progress, and current assets such as inventories and receivables. Inventories have more than doubled, reaching ₹1,242.18 crores, while sundry debtors have also increased, reflecting higher sales volumes.
Shareholders’ funds have grown from ₹491.92 crores to ₹1,530.90 crores, supported by rising reserves and equity capital. Long-term borrowings have increased moderately, indicating some leverage to finance expansion, but the company’s total debt position has been reduced to zero by March 2025, suggesting improved financial prudence and deleveraging efforts.
Cash Flow and Liquidity Trends
Cash flow from operating activities has generally improved, reaching ₹175 crores in March 2025 compared to ₹64 crores in March 2021, despite some volatility in working capital changes. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure to support growth. Financing activities have fluctuated, with a positive inflow of ₹101 crores in the latest year after a negative outflow in the previous year.
Closing cash and bank balances have declined to ₹30 crores in March 2025 from ₹35 crores in March 2021, partly due to increased investments and debt repayments. Overall, the company maintains a balanced liquidity position to support its operational and strategic needs.
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Summary of Historical Performance
In summary, Electronics Mart has exhibited strong revenue growth and expanding profitability over the last five years, supported by a growing asset base and improved shareholder equity. While profit margins have experienced some pressure from rising costs and interest expenses, the company’s ability to increase net profit and reduce overall debt highlights a positive financial trajectory. The steady increase in earnings per share from 1.95 in March 2021 to 4.17 in March 2025 further underscores value creation for shareholders.
Investors should note the company’s ongoing capital investments and working capital management as key factors influencing future performance. The balance between growth and cost control will be critical to sustaining profitability and enhancing returns in the coming years.
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