Revenue and Profitability Trends
The company’s net sales have shown a strong upward trajectory, rising from ₹746.49 crores in March 2022 to ₹1,817.70 crores by March 2025. This represents a compound annual growth rate of approximately 40%, reflecting expanding market demand and operational scaling. Correspondingly, total operating income mirrored this growth, with no other operating income reported during this period.
Operating profit before depreciation and interest (PBDIT) excluding other income surged from ₹72.67 crores in March 2022 to ₹490.86 crores in March 2025, indicating a substantial improvement in operational efficiency and cost management. The operating profit margin improved markedly from 9.73% to 27.0% over the same period, underscoring enhanced profitability.
Profit before tax swung from a loss of ₹41.75 crores in March 2022 to a robust profit of ₹417.74 crores in March 2025. After accounting for taxes, the company reported a profit after tax (PAT) of ₹316.01 crores in March 2025, a significant recovery from losses in the preceding years. The PAT margin improved from a negative 6.47% to a positive 17.39%, reflecting a strong bottom-line turnaround.
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Cost Structure and Expenses
Raw material costs increased in line with sales, rising from ₹418.78 crores in March 2022 to ₹752.85 crores in March 2025. Employee costs also grew steadily, reflecting workforce expansion and wage inflation, reaching ₹258.22 crores in the latest fiscal year. Other expenses rose proportionally, indicating increased operational activities. Despite these cost increases, the company managed to improve its gross profit margin from a negative 0.8% in March 2022 to nearly 25% in March 2025, signalling better pricing power and cost control.
Balance Sheet Strength and Capital Structure
Jyoti CNC Auto.’s shareholder funds expanded significantly from ₹41.15 crores in March 2022 to ₹1,686.15 crores in March 2025, driven by retained earnings and capital infusion. Total reserves grew substantially, supporting the company’s financial stability. The company’s total liabilities increased to ₹2,788.92 crores in March 2025, reflecting higher borrowings and operational scale.
Long-term borrowings decreased from ₹140.26 crores in March 2022 to ₹102.56 crores in March 2025, while short-term borrowings showed volatility but stood at ₹394.32 crores in the latest year. The net block of fixed assets rose to ₹468.74 crores, supported by capital work in progress of ₹167.68 crores, indicating ongoing investments in capacity expansion.
Book value per share improved markedly from ₹13.96 in March 2022 to ₹74.15 in March 2025, reflecting enhanced net asset value and shareholder wealth creation.
Cash Flow and Liquidity
Cash flow from operating activities turned negative in March 2025 at ₹-105 crores, impacted by significant working capital changes amounting to ₹-522 crores, which suggests increased inventory and receivables tied up in operations. Investing activities showed consistent outflows due to capital expenditure, while financing activities provided inflows of ₹145 crores, supporting liquidity needs.
Despite a net cash outflow of ₹288 crores in March 2025, the company maintained a closing cash and cash equivalent balance of ₹13 crores. This contrasts with a much stronger cash position of ₹302 crores in the previous year, indicating a tighter liquidity scenario that warrants monitoring.
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Summary and Outlook
Jyoti CNC Auto. has exhibited a remarkable recovery from losses in fiscal years 2022 and 2023 to strong profitability in 2024 and 2025. The company’s revenue growth, improved margins, and enhanced shareholder equity highlight a successful operational turnaround. However, the recent negative operating cash flow and increased working capital requirements suggest that liquidity management will be crucial going forward.
Investors should weigh the company’s improved earnings and asset base against the challenges of cash flow and debt levels. The upward trend in earnings per share, now positive after previous negative figures, adds to the positive narrative. Overall, Jyoti CNC Auto. presents a compelling case of revival in the capital goods sector, with cautious optimism warranted for sustained performance.
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