Revenue and Profitability Trends
Over the seven-year period ending March 2025, KM Sugar Mills’ net sales have shown a consistent upward trend, increasing from ₹390.06 crores in 2019 to ₹659.01 crores in 2025. This represents a significant expansion in the company’s top line, reflecting growing market demand and operational scale. The total operating income mirrors this growth, as other operating income remained negligible throughout the period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose from ₹37.82 crores in 2019 to ₹81.69 crores in 2025, indicating improved operational efficiency. Including other income, operating profit increased to ₹89.06 crores in 2025 from ₹51.97 crores in 2019. Despite fluctuations in raw material costs and other expenses, the company managed to enhance its operating profit margin, which stood at 12.4% in 2025, up from 9.7% in 2019.
Profit after tax (PAT) exhibited a positive trajectory as well, rising from ₹24.16 crores in 2019 to ₹35.55 crores in 2025. The PAT margin improved to 5.39% in 2025 compared to 6.19% in 2019, with some volatility in intermediate years. Earnings per share (EPS) followed suit, increasing from ₹2.63 in 2019 to ₹3.86 in 2025, underscoring enhanced shareholder value.
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Cost Structure and Expense Management
Raw material costs have been the largest component of expenditure, fluctuating between ₹366.42 crores in 2019 and ₹429.37 crores in 2025. Notably, raw material costs peaked in 2024 at ₹515.14 crores before easing in 2025. Other expenses also rose steadily, reaching ₹108.86 crores in 2025 from ₹52.16 crores in 2019. Employee costs increased moderately, reflecting gradual workforce expansion or wage inflation.
The company has maintained a disciplined approach to managing purchase of finished goods and stock variations, which have shown significant swings but generally contributed to stabilising overall expenditure. Total expenditure excluding depreciation rose from ₹352.24 crores in 2019 to ₹577.32 crores in 2025, in line with revenue growth.
Balance Sheet and Financial Position
KM Sugar Mills’ balance sheet has strengthened over the years, with shareholder’s funds increasing from ₹187.29 crores in 2020 to ₹338.59 crores in 2025. Reserves have also grown substantially, indicating retained earnings accumulation and financial prudence. The company’s book value per share improved from ₹20.36 in 2020 to ₹36.8 in 2025, reflecting enhanced net asset value per share.
On the liabilities side, total debt rose from ₹148.88 crores in 2020 to ₹281.85 crores in 2025, with a mix of long-term and short-term borrowings. While debt levels increased, the company’s interest expenses remained manageable, rising moderately from ₹7.62 crores in 2019 to ₹18.17 crores in 2025. Deferred tax liabilities and other long-term provisions have been stable, contributing to a balanced financial structure.
Cash Flow and Liquidity
Cash flow from operating activities has generally been positive, with ₹31 crores generated in 2025 compared to ₹28 crores in 2024 and a peak of ₹73 crores in 2023. Investing activities have consistently involved outflows, reflecting capital expenditure and investments, though the magnitude has reduced in recent years. Financing activities have fluctuated, with net outflows of ₹27 crores in 2025 after inflows in prior years.
Closing cash and cash equivalents stood at ₹3 crores in 2025, down from ₹7 crores in 2024, indicating a tighter liquidity position but still maintaining operational flexibility. Working capital changes have been volatile, impacting cash flow after working capital adjustments.
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Summary of Historical Performance
KM Sugar Mills has exhibited a commendable growth pattern over the past several years, with steady increases in revenue and profitability metrics. The company’s ability to expand its operating margins and improve earnings per share highlights operational improvements and effective cost management. Its balance sheet shows a healthy build-up of reserves and shareholder equity, although rising debt levels warrant monitoring.
Cash flow trends suggest the company is investing in its future growth while maintaining positive operating cash generation. The overall financial health and performance indicators position KM Sugar Mills as a resilient player in the sugar industry, with a track record of consistent growth and improving fundamentals.
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