How has been the historical performance of MRC Agrotech?

Revenue and Profitability Trends

In the fiscal year ending March 2025, MRC Agrotech’s net sales surged to ₹33.31 crores, more than doubling from ₹14.66 crores recorded in the previous year. This substantial increase in sales was accompanied by a corresponding rise in total operating income, which also stood at ₹33.31 crores for the year. The company’s expenditure, excluding depreciation, rose to ₹32.23 crores from ₹15.19 crores, reflecting higher purchase costs of finished goods and incremental employee expenses.

Despite the rise in expenditure, MRC Agrotech managed to reverse its operating losses from the prior year. The operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved to ₹1.08 crores in March 2025, compared to a loss of ₹0.53 crores in March 2024. Including other income, operating profit rose to ₹1.65 crores, signalling a positive shift in operational efficiency.

The company’s profit before tax (PBT) also turned positive at ₹1.50 crores, a significant improvement from a marginal loss in the previous year. After accounting for taxes and minority interest, the consolidated net profit stood at ₹0.99 crores, up from ₹0.89 crores in March 2024. However, earnings per share (EPS) declined to ₹0.48 from ₹0.85, largely due to the increase in equity capital following a share capital raise.

Balance Sheet and Asset Base

MRC Agrotech’s balance sheet reflects a robust expansion in shareholder funds, which more than doubled to ₹30.65 crores in March 2025 from ₹13.67 crores a year earlier. This growth was driven by an increase in share capital and reserves, with reserves rising to ₹10.16 crores from ₹3.25 crores. The company’s total liabilities also increased to ₹40.17 crores, up from ₹22.45 crores, primarily due to higher current liabilities and capital work in progress amounting to ₹4.52 crores.

The company’s asset base expanded significantly, with total assets rising to ₹40.17 crores from ₹22.45 crores. Non-current assets saw a notable increase to ₹26.36 crores, largely attributable to non-current investments and long-term loans and advances. Current assets decreased to ₹13.80 crores from ₹22.31 crores, reflecting changes in inventories and short-term loans and advances.

Debt levels have been managed prudently, with total debt reducing to ₹0.94 crores from ₹1.60 crores, indicating a cautious approach to leverage. The book value per share improved to ₹14.96 from ₹13.12, underscoring enhanced net worth per share for investors.

Cash Flow and Operational Efficiency

Cash flow from operating activities showed a positive turnaround, registering ₹1.00 crore in the latest fiscal year compared to a neutral position previously. The company invested ₹9.00 crores in investing activities, reflecting capital expenditure and strategic investments, while financing activities contributed ₹7.00 crores, likely from equity infusion or borrowings. Despite these movements, the net cash inflow/outflow remained balanced, indicating effective cash management.

Overall, MRC Agrotech’s historical performance over the recent fiscal years highlights a company in transition, moving from losses to profitability with a strengthened balance sheet and improved operational metrics. Investors should note the significant growth in sales and reserves, alongside prudent debt management, as positive indicators of the company’s financial health and future prospects.

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