Revenue and Profitability Trends
Over the past seven years, Modison’s net sales have shown a robust increase, rising from ₹201.17 crores in March 2018 to ₹490.24 crores by March 2025. This represents a compound growth that underscores the company’s expanding market presence and operational scale. Notably, the fiscal year ending March 2023 saw a slight dip in sales compared to the previous year, but the company quickly rebounded with a significant jump in the following years.
Operating profit margins, excluding other income, have fluctuated but generally remained healthy. The margin stood at 13.46% in 2018, dipped to a low of 7.3% in 2023, and recovered to 9.22% by March 2025. This variation reflects the company’s ability to manage costs amid changing raw material prices and operational expenses. Raw material costs have consistently been the largest expenditure, increasing in line with sales but managed effectively to sustain profitability.
Profit after tax (PAT) has mirrored the revenue growth, rising from ₹16.40 crores in 2018 to ₹24.68 crores in 2025. Earnings per share (EPS) have also improved, reaching ₹7.59 in the latest fiscal year, up from ₹5.05 in 2018. Despite some volatility in profit margins, the company has maintained a positive net profit margin around 5% in recent years, indicating stable bottom-line performance.
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Balance Sheet and Financial Position
Modison’s balance sheet has strengthened steadily, with shareholder’s funds increasing from ₹146.85 crores in 2020 to ₹216.61 crores in 2025. Total reserves have grown consistently, reflecting retained earnings and a solid capital base. The company’s total assets have expanded from ₹190.73 crores in 2020 to ₹319.26 crores in 2025, indicating ongoing investments in fixed assets and working capital.
Debt levels have fluctuated, with total debt rising sharply to ₹72.76 crores in 2025 from ₹31.71 crores in 2024, largely driven by short-term borrowings. This increase suggests a strategic use of leverage to support growth initiatives or working capital needs. Despite this, the company’s book value per share has improved from ₹45.15 in 2020 to ₹66.65 in 2025, signalling enhanced shareholder value.
Cash flow analysis reveals some volatility, with operating cash flow turning negative in the latest fiscal year after positive inflows in prior years. Investing activities have consistently been cash outflows, reflecting capital expenditure, while financing activities have varied, including a notable inflow in 2025. These dynamics highlight the company’s active management of liquidity and capital structure.
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Summary and Investor Insights
Modison’s historical performance reflects a company on a growth path, with increasing revenues and profits over the medium term. The firm has managed to expand its asset base and reserves while navigating fluctuations in profitability and cash flow. The rise in short-term borrowings in the latest year warrants attention, as it may impact liquidity and financial risk.
Investors should note the company’s ability to sustain earnings growth despite margin pressures and rising raw material costs. The improving book value per share and consistent dividend potential, implied by stable net profits, add to the investment appeal. However, monitoring working capital management and debt levels will be crucial for assessing future financial health.
Overall, Modison’s track record suggests a resilient business with growth prospects, balanced by prudent financial management and operational challenges typical of its sector.
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