Revenue and Profit Growth
Over the past six years, Fiem Industries has shown a robust increase in net sales, rising from ₹1,221.16 crores in the fiscal year ending March 2021 to ₹2,422.61 crores in March 2025. This represents a near doubling of revenue in four years, reflecting strong demand and effective market penetration. The total operating income mirrors this trend, with no other operating income reported, indicating that the core business activities are the primary revenue drivers.
Profitability has also improved significantly. Operating profit before depreciation and interest (PBDIT) excluding other income increased from ₹133.81 crores in March 2021 to ₹322.19 crores in March 2025. Including other income, operating profit rose to ₹338.31 crores in the latest fiscal year. The company’s profit after tax (PAT) surged from ₹46.91 crores in March 2021 to ₹204.96 crores in March 2025, highlighting effective cost management and operational efficiency.
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Margin Expansion and Cost Structure
Fiem Industries has steadily improved its operating profit margin, which stood at 11.08% in March 2021 and rose to 13.39% by March 2025. Gross profit margin also expanded from 10.12% to 14.16% over the same period. This margin enhancement is indicative of better pricing power, efficient raw material sourcing, and controlled operating expenses.
Raw material costs, the largest expense component, increased in absolute terms from ₹735.54 crores in March 2021 to ₹1,502.27 crores in March 2025, consistent with revenue growth. Employee costs also rose from ₹165.88 crores to ₹334.98 crores, reflecting workforce expansion and wage inflation. Other expenses followed a similar upward trend but remained proportionate to sales growth, supporting the margin improvements.
Balance Sheet Strength and Capital Structure
The company’s shareholder funds have grown substantially, from ₹569.35 crores in March 2021 to ₹1,038.19 crores in March 2025, supported by accumulated reserves increasing from ₹556.19 crores to ₹1,011.87 crores. This growth in net worth underscores retained earnings and capital accumulation.
Notably, Fiem Industries has reduced its long-term borrowings to zero by March 2025, down from ₹21.90 crores in March 2021, and short-term borrowings have also been eliminated. This deleveraging has strengthened the company’s financial stability and reduced interest expenses, which fell from ₹11.64 crores in March 2021 to ₹1.54 crores in March 2025.
On the asset side, net block of fixed assets has seen a moderate decline from ₹513.36 crores in March 2021 to ₹525.39 crores in March 2025, indicating steady capital investment and asset utilisation. Current assets have grown significantly, with cash and bank balances rising from ₹110.55 crores to ₹298.44 crores, enhancing liquidity.
Cash Flow and Operational Efficiency
Cash flow from operating activities has shown a positive trend, increasing from ₹135 crores in March 2021 to ₹233 crores in March 2025. Despite fluctuations in working capital, the company has maintained healthy cash generation, supporting its investing and financing activities. Investments in capital expenditure have been consistent, with cash outflows from investing activities reflecting ongoing expansion and asset maintenance.
Net cash inflow improved to ₹92 crores in March 2025, compared to ₹63 crores in March 2021, signalling stronger cash management and operational resilience.
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Summary of Historical Performance
In summary, Fiem Industries has exhibited strong historical performance characterised by consistent revenue growth, expanding profit margins, and a robust balance sheet. The company’s strategic focus on reducing debt and enhancing liquidity has improved its financial flexibility. Earnings per share have also increased markedly, reflecting both profit growth and equity base expansion.
While the company has faced rising raw material and employee costs, these have been effectively managed to sustain margin improvements. The absence of extraordinary or prior period expenses in recent years adds to the clarity of its earnings quality. Overall, Fiem Industries’ financial trajectory suggests a well-managed enterprise poised for continued growth in the competitive auto components sector.
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