Revenue and Profitability Trends
Over the fiscal years ending March 2024 and March 2025, Mono Pharmacare’s net sales increased significantly, reflecting a robust expansion in its core operations. The company’s total operating income rose from ₹122.34 crores in March 2024 to ₹168.34 crores in March 2025, indicating a strong top-line momentum. This growth was primarily driven by an increase in the purchase of finished goods, which rose in tandem with sales, suggesting an operational scaling aligned with demand.
Despite the increase in expenditure, including employee costs and other expenses, the company managed to enhance its operating profit (PBDIT) from ₹6.33 crores in March 2024 to ₹7.63 crores in March 2025, excluding other income. Including other income, operating profit improved to ₹8.61 crores in the latest fiscal year from ₹6.43 crores previously. However, operating profit margins saw a slight contraction, moving from 5.17% to 4.53%, reflecting the impact of rising costs on profitability ratios.
Interest expenses increased from ₹3.08 crores to ₹4.03 crores, which, combined with depreciation, moderated the gross profit before tax. Nevertheless, the company’s profit before tax rose from ₹3.23 crores to ₹4.46 crores, and profit after tax increased from ₹2.46 crores to ₹3.11 crores, underscoring improved bottom-line performance. Earnings per share (EPS) also reflected this positive trend, rising from ₹1.38 to ₹1.75 over the same period.
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Balance Sheet and Financial Position
Mono Pharmacare’s balance sheet reveals a strengthening financial position over the last three years. Shareholder’s funds have more than doubled from ₹13.38 crores in March 2023 to ₹31.20 crores in March 2025, supported by consistent reserve accumulation. The company’s equity capital remained stable at approximately ₹17.67 crores in the last two years, with reserves rising from ₹1.01 crores in March 2023 to ₹13.53 crores in March 2025, indicating retained earnings growth.
On the liabilities side, total debt increased from ₹40.50 crores in March 2023 to ₹53.56 crores in March 2025, reflecting higher long-term and short-term borrowings. Long-term borrowings rose notably to ₹25.96 crores, while short-term borrowings also increased to ₹27.60 crores. Despite this rise in debt, the company’s total liabilities remain balanced by a corresponding increase in total assets, which grew from ₹62.55 crores in March 2023 to ₹110.01 crores in March 2025.
Asset quality shows a steady increase in current assets, particularly inventories and sundry debtors, which expanded significantly, supporting operational needs. Net current assets improved from ₹29.92 crores in March 2023 to ₹56.21 crores in March 2025, signalling enhanced liquidity and working capital management. Fixed assets have seen modest growth, with net block rising slightly, while intangible and non-current investments have remained minimal.
Cash Flow and Operational Efficiency
Cash flow analysis indicates challenges in operating cash generation, with cash flow from operating activities remaining negative over the last three years, though the deficit has narrowed from ₹27 crores in March 2023 to ₹4 crores in March 2025. This reflects ongoing working capital demands, as changes in working capital have consistently been negative, albeit improving. Financing activities have provided positive cash inflows, supporting the company’s capital requirements and debt servicing.
Overall, while cash flow from operations remains a concern, the company’s ability to raise funds through financing has helped maintain liquidity. The absence of cash flow from investing activities in recent years suggests limited capital expenditure or asset acquisitions, aligning with the modest growth in fixed assets.
Summary of Historical Performance
Mono Pharmacare’s historical performance over the recent fiscal years reflects a company in growth mode, with rising revenues and profits supported by expanding operational scale. The increase in shareholder equity and reserves demonstrates retained earnings accumulation, while the rise in debt indicates leveraged expansion. Margins have experienced slight pressure due to cost increases, but profitability remains positive and improving.
Working capital management and cash flow generation remain areas to monitor, given the persistent negative operating cash flows. However, the company’s balance sheet strength and improving net current assets provide a cushion for ongoing operations. Earnings per share growth and stable equity capital further reinforce the company’s financial progress.
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