Revenue and Profitability Trends
Over the past six years, HEC Infra Proj. has seen its net sales rise from ₹37.56 crores in March 2021 to ₹112.10 crores in March 2025, reflecting a robust growth trajectory. This surge is particularly notable given the dip in sales observed in 2020 and 2021, likely impacted by broader economic challenges. The company’s operating profit margin, excluding other income, has also improved significantly, reaching 12.44% in the latest fiscal year compared to a modest 6.12% in 2021. This margin expansion indicates enhanced operational efficiency and cost management.
Profit after tax (PAT) has mirrored this upward trend, climbing from a low of ₹0.31 crores in 2021 to ₹9.24 crores in 2025. Correspondingly, the PAT margin improved from 0.83% to 8.24% over the same period. Earnings per share (EPS) have followed suit, rising from ₹0.31 in 2021 to ₹8.52 in 2025, signalling stronger returns for shareholders.
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Cost Structure and Operating Efficiency
The company’s total expenditure, excluding depreciation, has increased in line with revenue growth, rising from ₹35.26 crores in 2021 to ₹98.15 crores in 2025. Notably, the purchase of finished goods remains the largest cost component, accounting for nearly 40% of total operating income in the latest year. Employee costs have remained relatively stable, reflecting controlled labour expenses despite business expansion. Other expenses have also increased but at a controlled pace, supporting the improved operating profit margins.
Interest expenses have fluctuated, peaking at ₹3.23 crores in 2023 before declining to ₹3.16 crores in 2025, indicating some easing of financial costs. Depreciation charges have remained low and stable, suggesting limited capital asset ageing or additions.
Balance Sheet and Financial Position
HEC Infra Proj.’s balance sheet reveals a strengthening equity base, with shareholders’ funds rising from ₹28.84 crores in 2021 to ₹53.14 crores in 2025. This growth is supported by increasing reserves, which more than doubled from ₹24.72 crores in 2024 to ₹42.30 crores in 2025. The company’s total liabilities have also increased, primarily driven by a sharp reduction in long-term borrowings from ₹24.62 crores in 2024 to just ₹0.32 crores in 2025, offset by a rise in short-term borrowings to ₹37.57 crores.
Current liabilities have surged to ₹52.53 crores in 2025, reflecting higher trade payables and short-term debt, which may warrant close monitoring for liquidity management. Total assets have expanded significantly, reaching ₹106.16 crores in 2025, with a notable increase in non-current assets largely due to other non-current assets and long-term loans and advances.
Cash Flow and Liquidity
Cash flow from operating activities has been volatile, with a negative outflow of ₹26 crores in 2025 contrasting with positive inflows in previous years. This is largely attributable to adverse changes in working capital, which saw a ₹35 crore increase in 2025. Financing activities have provided some relief, with a ₹16 crore inflow in 2025, likely supporting the company’s liquidity needs. Despite these fluctuations, the closing cash and cash equivalents stood at ₹2 crores in 2025, down from ₹11 crores the previous year, signalling tighter cash reserves.
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Summary and Outlook
HEC Infra Proj. has exhibited a commendable recovery and growth pattern since 2021, with substantial improvements in revenue, profitability, and equity. The company’s operating margins and net profit margins have expanded, reflecting better cost control and operational leverage. However, the increase in short-term borrowings and current liabilities alongside negative operating cash flow in the latest year suggests a need for prudent liquidity management going forward.
Investors should weigh the company’s strong earnings growth and improving balance sheet against the challenges posed by working capital pressures and cash flow volatility. The historical performance indicates a company in transition, with potential for further growth if it can sustain operational efficiencies and manage its financial obligations effectively.
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