Revenue and Profit Trends
Pasupati Acrylon's net sales have exhibited notable volatility over the past seven years. After peaking at over ₹825 crores in FY2019 and FY2023, sales dipped significantly in FY2021 to approximately ₹505 crores, before recovering to ₹621 crores in FY2025. This fluctuation underscores the cyclical nature of the industry and the company's sensitivity to market conditions.
Operating profit margins, excluding other income, have mirrored this variability. The margin reached a high of 11.8% in FY2021 but contracted to 7.2% by FY2025. Despite this, the company maintained positive operating profits throughout, with PBDIT (profit before depreciation, interest, and tax) peaking at ₹62 crores in FY2022 before easing to ₹44.8 crores in FY2025.
Profit after tax (PAT) followed a similar trajectory, with a peak of nearly ₹46 crores in FY2022 and a subsequent decline to ₹35.4 crores in FY2025. Earnings per share (EPS) reflected these trends, reaching a high of 5.15 in FY2022 and settling at 3.97 in FY2025. The PAT margin stood at 5.7% in FY2025, down from 8.5% in FY2021, indicating some pressure on net profitability.
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Cost Structure and Operating Efficiency
The company's raw material costs have consistently represented the largest expenditure, ranging from ₹332 crores in FY2021 to ₹478 crores in FY2025. This cost base has a direct impact on gross margins, which have fluctuated between 4% and nearly 13% over the years. Other expenses, including employee costs and miscellaneous overheads, have remained relatively stable, with employee costs rising modestly from ₹22.5 crores in FY2021 to ₹28.6 crores in FY2025.
Interest expenses have declined significantly from ₹8.17 crores in FY2019 to ₹2.5 crores in FY2025, reflecting improved debt management. Depreciation charges have remained steady, averaging around ₹6 crores annually.
Balance Sheet and Financial Position
Pasupati Acrylon's balance sheet has strengthened over the years, with shareholder funds increasing from ₹190 crores in FY2020 to ₹364 crores in FY2025. This growth is supported by rising reserves, which have nearly tripled from ₹88 crores in FY2019 to ₹275 crores in FY2025, indicating retained earnings accumulation and financial prudence.
Total liabilities have grown in line with assets, reaching ₹595 crores in FY2025 from ₹359 crores in FY2020. Notably, the company has increased its long-term borrowings substantially in recent years, from negligible levels to over ₹101 crores in FY2025, suggesting capital expenditure or expansion initiatives.
Net block of fixed assets surged to ₹250 crores in FY2025 from around ₹80 crores in earlier years, corroborating the investment in capacity or infrastructure. Current assets have also expanded, with total current assets exceeding ₹334 crores in FY2025, supported by a healthy mix of inventories, receivables, and cash balances.
Cash Flow Dynamics
Cash flow from operating activities has been inconsistent, with a positive ₹6 crores in FY2025 contrasting with a negative cash flow in FY2022. Investing activities have consistently absorbed cash, reflecting ongoing capital investments, with outflows of ₹81 crores in FY2025. Financing activities have provided inflows, notably ₹61 crores in FY2025, likely linked to increased borrowings.
The net cash position has fluctuated, ending FY2025 with ₹21 crores in cash and cash equivalents, down from ₹34 crores the previous year. This indicates a cautious liquidity stance amid expansion efforts.
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Summary of Historical Performance
Over the analysed period, Pasupati Acrylon has demonstrated resilience amid market fluctuations. The company’s revenue and profit margins have experienced ups and downs, with peak performances around FY2022 and FY2023. Its balance sheet has grown stronger, supported by increased reserves and shareholder funds, alongside strategic borrowing to fund asset expansion.
While profitability margins have softened somewhat in recent years, the company maintains positive earnings and a stable cash position. The investment in fixed assets and the rise in long-term debt suggest a focus on growth and capacity enhancement, which could position Pasupati Acrylon favourably for future market opportunities.
Investors should note the cyclical nature of the company’s financials and monitor how ongoing investments translate into operational performance in coming years.
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