Revenue and Profitability Growth
Macfos's net sales surged from ₹125.13 crores in March 2024 to ₹255.06 crores in March 2025, effectively more than doubling within a year. This robust increase in top-line revenue was accompanied by a rise in total operating income, which matched net sales figures as there was no other operating income reported in either year. The company’s expenditure also increased, with total costs excluding depreciation rising from ₹109.58 crores to ₹230.63 crores, reflecting the scale of operations expanding alongside revenue.
Despite the higher expenditure, Macfos managed to improve its operating profit (PBDIT) excluding other income from ₹15.55 crores to ₹24.43 crores. Including other income, operating profit rose to ₹27.13 crores in March 2025 from ₹16.78 crores the previous year. Interest expenses increased moderately from ₹1.38 crores to ₹2.24 crores, while depreciation edged up slightly to ₹0.87 crores.
Profit before tax climbed significantly from ₹14.73 crores to ₹24.02 crores, and after accounting for taxes, the profit after tax (PAT) rose from ₹10.83 crores to ₹17.92 crores. This translated into an earnings per share (EPS) increase from ₹12.25 to ₹19.02, signalling enhanced shareholder value. However, operating profit margin and PAT margin experienced a slight contraction, with operating margin decreasing from 12.43% to 9.58% and PAT margin from 8.65% to 7.03%, indicating some margin pressure despite the growth in absolute profits.
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Balance Sheet and Financial Position
Macfos's balance sheet reflects a strengthening financial position. Shareholder's funds surged from ₹27.32 crores in March 2024 to ₹70.23 crores in March 2025, driven largely by a substantial increase in reserves from ₹18.49 crores to ₹60.82 crores. This growth in equity was supported by a modest rise in share capital from ₹8.84 crores to ₹9.42 crores.
Total liabilities more than doubled from ₹49.96 crores to ₹107.61 crores, with current liabilities increasing significantly due to a rise in short-term borrowings from ₹5.98 crores to ₹18.63 crores. Long-term borrowings decreased slightly, indicating a shift in the debt profile towards short-term financing. The company’s total debt rose from ₹8.18 crores to ₹20.01 crores, reflecting increased leverage to support expansion.
On the asset side, total assets grew from ₹49.96 crores to ₹107.61 crores. Notably, non-current assets increased from ₹11.81 crores to ₹23.70 crores, while current assets more than doubled from ₹38.15 crores to ₹83.92 crores. Inventories and short-term loans and advances saw marked increases, suggesting higher operational activity and working capital requirements. The book value per share more than doubled from ₹30.92 to ₹74.58, underscoring the enhanced net asset value per equity share.
Cash Flow and Working Capital Dynamics
Macfos experienced a challenging cash flow situation in the fiscal year ending March 2025. While profit before tax improved to ₹24 crores from ₹14 crores, changes in working capital resulted in a negative cash flow impact of ₹42 crores, a significant increase from the ₹8 crores outflow in the previous year. Consequently, cash flow from operating activities turned negative at ₹24 crores compared to a positive ₹4 crores in the prior year.
Investing activities also saw higher cash outflows, increasing from ₹4 crores to ₹10 crores, reflecting investments in assets or expansion. Financing activities provided a substantial inflow of ₹34 crores, which helped offset operational and investing cash outflows, maintaining a neutral net cash position by the end of the year. The closing cash and cash equivalents stood at zero, unchanged from the previous year.
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Summary and Outlook
Overall, Macfos has shown impressive growth in revenue and profitability over the last fiscal year, supported by a stronger balance sheet and increased shareholder equity. The company’s ability to more than double its net sales and significantly improve net profit after tax highlights operational expansion and improved earnings capacity. However, margin compression and negative operating cash flow due to working capital pressures warrant close monitoring.
Investors should consider both the growth trajectory and the liquidity dynamics when evaluating Macfos’s historical performance. The company’s increased leverage and working capital requirements suggest a need for efficient cash management to sustain growth momentum. The doubling of book value per share and EPS growth are positive indicators of value creation, but the evolving debt profile and cash flow trends remain key factors for future performance assessment.
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