How has been the historical performance of Indo Count Inds.?

Revenue and Profit Growth

Over the seven-year period ending March 2025, Indo Count Inds. has seen its net sales rise significantly from under ₹2,000 crores in 2019 to over ₹4,150 crores in 2025. This represents a robust compound growth, reflecting the company’s expanding market presence and operational scale. Operating profit margins, however, have experienced some fluctuations, peaking at just over 20% in 2022 before moderating to approximately 13% in 2025. Despite this, the company maintained positive operating profitability throughout, with operating profit (PBDIT) increasing from ₹166 crores in 2019 to nearly ₹577 crores in 2025.

Profit after tax (PAT) has also followed an upward trend, rising from around ₹60 crores in 2019 to ₹250 crores in 2025. Earnings per share (EPS) mirrored this growth, increasing from a modest ₹3.05 in 2019 to ₹12.62 in 2025, although EPS peaked in 2022 at over ₹18 before easing in subsequent years. The PAT margin similarly peaked in 2022 at 12.6% before declining to just above 6% in 2025, indicating some pressure on net profitability in recent years.

Cost Structure and Margins

The company’s raw material costs have naturally increased in line with sales, rising from approximately ₹1,036 crores in 2019 to ₹1,766 crores in 2025. Other expenses have also grown steadily, reaching nearly ₹1,336 crores in the latest fiscal year. Employee costs have more than tripled over the period, reflecting workforce expansion and inflationary pressures. Despite these rising costs, Indo Count Inds. has managed to sustain positive gross profit margins, although these have declined from a high of 18.5% in 2022 to around 11% in 2025, signalling tighter cost control challenges.

Balance Sheet and Financial Position

Indo Count Inds. has strengthened its balance sheet considerably, with shareholder’s funds increasing from under ₹1,000 crores in 2020 to over ₹2,275 crores in 2025. The company’s total assets have more than doubled over the same period, reaching ₹4,260 crores by March 2025. This growth is supported by significant investments in fixed assets, with net block rising from ₹557 crores in 2020 to ₹1,648 crores in 2025, indicating ongoing capital expenditure and capacity expansion.

However, the company’s debt levels have also increased, with total debt rising from ₹329 crores in 2020 to nearly ₹1,150 crores in 2025. Short-term borrowings constitute the majority of this debt, suggesting reliance on working capital financing. Despite this, the company’s book value per share has improved steadily, reflecting enhanced net worth and shareholder value over time.

Cash Flow Trends

Cash flow from operating activities has shown volatility, with a notable dip into negative territory in 2022 but recovering strongly to ₹394 crores in 2025. Investing activities have consistently been cash outflows, reflecting ongoing capital investments, while financing activities have fluctuated, with a positive inflow of ₹104 crores in 2025 after periods of outflows. The net cash inflow in 2025 was modest at ₹13 crores, with closing cash and cash equivalents standing at ₹106 crores, indicating a stable liquidity position.

Summary and Outlook

Indo Count Inds. has exhibited strong historical growth in revenue and profitability, supported by expanding asset base and shareholder equity. While margins have softened somewhat in recent years, the company remains profitable with a solid earnings track record. The increase in debt, particularly short-term borrowings, warrants monitoring, but the company’s liquidity and cash flow generation have improved recently. Investors should consider these factors alongside sector dynamics and market conditions when evaluating Indo Count Inds.’ future prospects.

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