How has been the historical performance of Hind Rectifiers?

Revenue and Profitability Growth

In the fiscal year ending March 2025, Hind Rectifiers reported consolidated net sales of ₹655.37 crores, a substantial increase from ₹517.55 crores recorded in the previous year. This growth of approximately 26.6% underscores the company’s expanding market presence and demand for its products. Total operating income mirrored this trend, with no other operating income reported in either year, indicating that core business activities drove the revenue expansion.

Despite rising raw material costs, which increased from ₹381.56 crores to ₹501.11 crores, the company managed to enhance its operating profit margin. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose sharply to ₹70.32 crores from ₹44.24 crores, improving the operating margin from 8.55% to 10.73%. Including other income, operating profit reached ₹71.80 crores, nearly 60% higher than the previous year.

Profit before tax surged to ₹50.11 crores from ₹17.69 crores, while profit after tax more than doubled to ₹37.11 crores compared to ₹12.51 crores in the prior year. This translated into a significant jump in earnings per share (EPS), which rose from ₹7.29 to ₹21.64, reflecting enhanced profitability and value creation for shareholders.

Balance Sheet and Asset Quality

Hind Rectifiers’ balance sheet reflects a strengthening financial position. Shareholders’ funds increased to ₹159.87 crores from ₹124.53 crores, supported by a rise in reserves from ₹121.10 crores to ₹156.44 crores. The company’s total assets grew to ₹417.29 crores, up from ₹328.92 crores, signalling expansion in operational scale and asset base.

Long-term borrowings rose moderately to ₹28.40 crores, while short-term borrowings increased to ₹130.58 crores, indicating a measured approach to leveraging for growth. Total debt stood at ₹158.98 crores, up from ₹128.93 crores, but the company maintained a healthy net current asset position of ₹45.32 crores, up from ₹36.03 crores, ensuring liquidity and operational flexibility.

Net block assets increased to ₹102.31 crores from ₹83.70 crores, reflecting ongoing capital investments. Intangible assets under development decreased, suggesting progress in project completions. Inventories and sundry debtors also rose, consistent with higher sales volumes.

Cash Flow and Financial Stability

Cash flow from operating activities remained steady, increasing slightly to ₹35 crores from ₹33 crores, despite a larger negative change in working capital of ₹42 crores compared to ₹14 crores the previous year. Investing activities reflected higher outflows at ₹25 crores, indicative of ongoing capital expenditure, while financing activities showed reduced outflows of ₹10 crores, signalling controlled debt servicing and capital management.

Notably, the company maintained a stable cash and bank balance of ₹1 crore, consistent with the prior year, demonstrating prudent cash management. Contingent liabilities remained largely unchanged at around ₹11.6 crores, suggesting no significant off-balance sheet risks.

Overall, Hind Rectifiers’ financial performance over the last year highlights a commendable growth trajectory, improved profitability, and a solid balance sheet foundation. The company’s ability to enhance margins amid rising costs and expand shareholder value through increased reserves and EPS growth positions it favourably for future opportunities.

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