Revenue and Profitability Trends
The company’s net sales have shown resilience and growth, rising from approximately ₹1,214 crore in March 2019 to ₹2,066 crore in March 2025. Despite a dip in fiscal 2020, likely due to broader economic disruptions, sales rebounded strongly in subsequent years. Operating profit margins, excluding other income, have generally hovered between 3.6% and 6.4%, peaking in fiscal 2024 at 6.4%. The operating profit (PBDIT) excluding other income increased from ₹69 crore in 2019 to ₹117 crore in 2025, reflecting improved operational efficiency.
Other income has contributed positively, with operating profit including other income reaching ₹148 crore in 2025. However, interest expenses have also risen, from ₹4.28 crore in 2019 to nearly ₹31 crore in 2025, impacting the profit before tax (PBT), which stood at ₹46 crore in the latest fiscal year. The consolidated net profit has fluctuated, peaking at ₹56 crore in 2023 before settling at ₹36 crore in 2025, with profit after tax margins ranging from 0.3% to 3.07% over the period.
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Cost Structure and Margins
Raw material costs have consistently represented the largest expenditure, rising from ₹945 crore in 2019 to ₹1,430 crore in 2025, reflecting the scale of operations and input price pressures. Employee costs have also increased steadily, reaching ₹208 crore in 2025, indicative of workforce expansion or wage inflation. Other expenses have grown from ₹148 crore in 2019 to ₹285 crore in 2025, suggesting increased operational activities or overheads. Despite these rising costs, the company has managed to maintain a gross profit margin above 3% in most years, with a notable improvement to over 5% in recent years.
Balance Sheet and Financial Position
Shareholders’ funds have strengthened from ₹289 crore in 2020 to ₹416 crore in 2025, supported by accumulated reserves. The book value per share has appreciated from ₹28.89 in 2020 to ₹41.57 in 2025, signalling enhanced net asset value. Total liabilities have increased in line with business growth, reaching ₹1,219 crore in 2025. Long-term borrowings have declined from ₹93 crore in 2020 to ₹39 crore in 2025, while short-term borrowings have risen, reflecting a shift in debt profile. The company’s total debt stood at ₹157 crore in 2025, up from ₹109 crore in 2020, indicating moderate leverage.
Asset Base and Working Capital
The net block of fixed assets has remained relatively stable around ₹256 crore in 2025, with capital work in progress increasing to ₹18 crore, suggesting ongoing investments. Current assets, including inventories and sundry debtors, have expanded to ₹725 crore in 2025, supporting operational needs. Net current assets have improved to ₹180 crore, reflecting better liquidity management. Cash and bank balances have remained modest, around ₹13 crore, consistent with the company’s working capital cycle.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has shown variability, with a peak of ₹136 crore in 2022 and a more moderate ₹25 crore in 2025. Investing activities have generally been cash outflows, reflecting capital expenditure and investments, while financing activities have mostly been outflows, indicating debt repayments or dividend payments. The net cash inflow/outflow has been close to neutral in recent years, suggesting balanced cash management. The company’s ability to generate positive operating cash flow despite fluctuating profits highlights operational resilience.
Summary
Overall, Munjal Auto Inds has exhibited a mixed but generally positive historical performance. Revenue growth has been steady with some volatility, while profitability margins have improved in recent years. The balance sheet shows strengthening equity and manageable debt levels, supported by stable asset investments and working capital management. Cash flow trends indicate operational robustness, though capital expenditure and financing outflows remain significant. Investors should weigh these factors alongside sector dynamics when considering the company’s prospects.
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