Revenue and Profitability Trends
Examining the net sales figures, Haleos Labs Limi recorded ₹344.72 crores in the fiscal year ending March 2025, reflecting a recovery from a dip in the previous year when sales stood at ₹305.96 crores. The company’s revenue has oscillated over the years, peaking at ₹377.85 crores in March 2019 and experiencing a trough around ₹260.78 crores in March 2020. Despite these fluctuations, the firm has maintained a consistent operating profit margin, which improved to 13.07% in March 2025 from 10.17% in the prior year, signalling enhanced operational efficiency.
Operating profit (PBDIT) excluding other income rose significantly to ₹45.04 crores in March 2025, up from ₹31.12 crores in March 2024. Including other income, operating profit reached ₹49.90 crores, underscoring the company’s ability to generate earnings beyond core operations. However, interest expenses increased to ₹8.71 crores in March 2025, slightly higher than the previous year, which impacted the profit before tax (PBT) that stood at ₹26.19 crores.
Profit after tax (PAT) showed a notable improvement, climbing to ₹18.73 crores in March 2025 from ₹6.33 crores in March 2024. The consolidated net profit followed a similar trajectory, reaching ₹20.11 crores. Earnings per share (EPS) also reflected this upward trend, more than doubling to ₹66.59 in March 2025 compared to ₹30.1 in the prior year. Despite these gains, the PAT margin remains modest at 5.43%, indicating room for further profitability enhancement.
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Cost Structure and Margins
The company’s cost of raw materials has decreased notably from ₹268.79 crores in March 2019 to ₹149.91 crores in March 2025, reflecting improved procurement or production efficiencies. Manufacturing expenses and employee costs have steadily increased, with employee costs rising from ₹23.11 crores in March 2019 to ₹59.54 crores in March 2025, indicative of workforce expansion or wage inflation. Total expenditure excluding depreciation stood at ₹299.68 crores in March 2025, up from ₹274.84 crores the previous year, but still below the levels seen in earlier years.
Gross profit margin improved to 11.95% in March 2025, up from 8.1% in March 2024, signalling better cost control and pricing power. The operating profit margin excluding other income also showed a healthy rise, reinforcing the company’s strengthening operational performance.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds increased to ₹196.56 crores in March 2025 from ₹176.81 crores a year earlier, supported by rising reserves which reached ₹193.54 crores. The company’s total liabilities remained relatively stable at around ₹390 crores. Notably, long-term borrowings declined from ₹50.95 crores in March 2024 to ₹33.55 crores in March 2025, reflecting deleveraging efforts. Conversely, short-term borrowings increased to ₹65.75 crores, suggesting a shift in debt profile.
Net block of fixed assets rose to ₹230.08 crores, indicating ongoing capital investments, while capital work in progress sharply reduced to ₹0.40 crores, signalling completion of major projects. Current assets remained steady at approximately ₹150 crores, with inventories and sundry debtors showing moderate increases, consistent with business growth.
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Cash Flow and Liquidity
Cash flow from operating activities improved to ₹34 crores in March 2025, up from ₹24 crores in the previous year, reflecting stronger core business cash generation. Investing activities continued to be cash outflows, with ₹15 crores spent in March 2025, though this was lower than the ₹18 crores outflow in March 2024. Financing activities showed a net outflow of ₹19 crores, indicating debt repayments or dividend payments.
Despite these movements, the company’s cash and cash equivalents remained minimal at ₹1.51 crores in March 2025, highlighting a tight liquidity position. Working capital changes were negative, suggesting efficient management of receivables and payables, but also signalling potential pressure on short-term liquidity.
Overall, Haleos Labs Limi’s historical performance reveals a company navigating cyclical revenue patterns with improving profitability and a focus on strengthening its financial structure. Investors should note the steady rise in earnings per share and operating margins, balanced against moderate leverage and liquidity constraints.
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