Revenue and Profitability Trends
Over the seven-year period ending March 2025, Kesar Petroprod.'s net sales exhibited notable volatility but an overall increase. Sales peaked at ₹185.17 crores in March 2025, up from ₹154.74 crores in March 2019, reflecting a compound growth trend despite intermittent dips, such as in March 2023 when sales fell to ₹119.96 crores. The total operating income mirrored this pattern, with no other operating income reported during this period.
Raw material costs, the largest expenditure component, rose in tandem with sales, reaching ₹155.31 crores in March 2025 from ₹123.89 crores in March 2019. Employee costs and other expenses remained relatively stable, with a slight upward trend in other expenses from ₹21.52 crores in 2019 to ₹15.87 crores in 2025, indicating some cost optimisation.
Operating profit before other income (PBDIT excl. OI) showed a marked improvement, climbing from a modest ₹1.99 crores in March 2019 to ₹15.97 crores in March 2025. Including other income, operating profit rose to ₹18.45 crores in the latest fiscal year, more than five times the level recorded in 2019. This improvement is reflected in the operating profit margin, which expanded to 8.62% in March 2025 from a low of 1.29% in 2019.
Profit before tax (PBT) and profit after tax (PAT) followed a similar upward trajectory. The company swung from a marginal PBT of ₹0.33 crores in 2019 and a loss after tax of ₹0.32 crores to a robust PBT of ₹13.31 crores and PAT of ₹9.96 crores in March 2025. Correspondingly, the PAT margin improved to 5.38% in 2025 from a negative margin in 2019, signalling enhanced profitability and operational efficiency.
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Balance Sheet and Asset Base Evolution
Kesar Petroprod.'s total assets have expanded significantly, rising from ₹147.19 crores in March 2019 to ₹238.29 crores in March 2025. This growth was driven by increases in both non-current assets and current assets. The net block of fixed assets increased steadily to ₹63.94 crores in 2025 from ₹42.51 crores in 2019, while capital work in progress surged notably to ₹56.08 crores, indicating ongoing investments in capacity or infrastructure.
Current assets also grew, reaching ₹100.77 crores in 2025 from ₹77.57 crores in 2019, supported by rising inventories and cash balances. Cash and bank balances improved markedly to ₹29.94 crores in 2025 from a negative balance in 2019, reflecting stronger liquidity management.
On the liabilities side, total debt increased from ₹7.55 crores in 2019 to ₹72.93 crores in 2025, with long-term borrowings rising substantially to ₹40.43 crores. Short-term borrowings also increased, indicating a higher leverage level to support growth initiatives. Shareholders’ funds grew from ₹118.47 crores to ₹143.88 crores, supported by accumulated reserves, which rose to ₹134.21 crores in 2025 from ₹80.73 crores in 2019. The book value per share improved accordingly, reaching ₹13.90 in 2025 from ₹9.35 in 2019.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been variable but generally positive in recent years. After a negative cash flow in 2024, the company generated ₹13 crores in operating cash flow in 2025, reflecting improved operational cash generation. Investing activities consistently showed cash outflows, peaking at ₹42 crores in 2023, consistent with capital expenditure trends. Financing activities provided positive inflows, particularly in 2024 and 2025, supporting the company’s expansion and debt servicing.
Net cash inflow stood at ₹9 crores in 2025, a significant improvement over previous years, contributing to a stronger cash position at year-end. This enhanced liquidity supports the company’s ability to meet short-term obligations and invest in growth opportunities.
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Summary of Historical Performance
In summary, Kesar Petroprod. has shown a commendable recovery and growth in financial performance over the past seven years. The company has transitioned from marginal profitability and low margins to a more robust earnings profile with improved operating and net profit margins. Its asset base and shareholder equity have expanded, supported by increased borrowings to fund capital investments. Cash flow dynamics indicate a maturing business with better operational cash generation and prudent financing strategies.
While the company’s leverage has increased, the growth in reserves and book value per share suggests value creation for shareholders. The steady rise in net sales and profitability, coupled with enhanced liquidity, positions Kesar Petroprod. as a company that has strengthened its financial footing and operational efficiency over the analysed period.
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