Revenue and Profitability Trends
Over the seven-year period ending March 2025, Manaksia Steels’ net sales demonstrated notable volatility. The company recorded peak sales in fiscal 2023 at over ₹740 crores, followed by a decline to approximately ₹634 crores in the latest fiscal year. This dip reflects a contraction of around 7% compared to the previous year, indicating challenges in sustaining top-line growth amid market conditions.
Operating profit margins, excluding other income, have mirrored this variability. The margin peaked at 8.7% in fiscal 2022 but declined sharply to 2.33% by March 2025. Correspondingly, the operating profit (PBDIT) excluding other income fell from over ₹53 crores in 2024 to under ₹15 crores in 2025. Despite this, other income contributed positively, cushioning the overall operating profit to ₹27.32 crores in the latest year.
Profit after tax (PAT) followed a similar pattern, with a high of ₹35.32 crores in 2022 before dropping to ₹9.75 crores in 2025. The PAT margin contracted from nearly 5.8% to 1.54% over the same period. Earnings per share (EPS) also reflected this trend, declining from 5.39 in 2022 to 1.49 in 2025, underscoring the pressure on shareholder returns.
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Cost Structure and Expenditure Analysis
Raw material costs have consistently represented the largest expenditure, ranging from ₹354 crores in 2021 to a peak of ₹617 crores in 2023. The latest fiscal year saw a slight reduction to ₹551 crores, aligning with the lower sales volume. Employee costs remained relatively stable, hovering around ₹20-22 crores annually, while other expenses increased steadily from ₹49.88 crores in 2019 to ₹64.11 crores in 2025.
The company’s total expenditure excluding depreciation closely tracked revenue trends, peaking in 2023 at over ₹718 crores before easing to ₹619 crores in 2025. Interest expenses rose notably in recent years, reaching ₹8.47 crores in 2025, which impacted gross profit and net profitability.
Balance Sheet and Asset Position
Manaksia Steels’ total assets expanded from ₹348 crores in 2021 to ₹537 crores in 2025, reflecting investments in capital work in progress which surged to ₹92.52 crores in the latest year. Net block of fixed assets declined from ₹75 crores in 2021 to ₹56 crores in 2025, indicating depreciation outpacing new asset additions.
Shareholders’ funds increased steadily from ₹223 crores in 2021 to ₹289 crores in 2025, supported by reserves growth. The company’s debt profile shifted significantly, with total debt reducing to zero by 2025 after peaking at ₹65.71 crores in 2021. However, short-term borrowings rose sharply to ₹203.65 crores in 2025, signalling a shift in financing strategy towards current liabilities.
Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹52 crores in 2024 turning positive to ₹13 crores in 2025. Investing activities consistently showed cash outflows, reflecting ongoing capital expenditure and investments. Financing activities fluctuated, with a significant inflow of ₹129 crores in 2024 followed by a more moderate ₹9 crores in 2025. The company’s closing cash and cash equivalents stood at ₹10 crores in 2025, down from ₹16 crores in 2021 but stable compared to recent years.
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Summary and Outlook
Manaksia Steels’ historical performance reveals a company navigating cyclical pressures in the steel sector, with fluctuating revenues and profitability over the past seven years. While the firm has managed to maintain positive net profits and strengthen its equity base, recent declines in operating margins and rising short-term borrowings highlight areas of concern. The ongoing capital investments suggest a focus on future growth, but the company’s ability to improve operational efficiency and manage costs will be critical to restoring stronger profitability and cash flow stability.
Investors should monitor the company’s evolving financial health, particularly its capacity to convert capital expenditure into enhanced earnings and maintain a balanced debt profile. The historical data underscores the importance of a cautious yet attentive approach to Manaksia Steels’ stock, considering both its potential and the challenges it faces in a competitive industry landscape.
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