Revenue and Profitability Trends
Examining the net sales figures, Prajay Engineers reported ₹57.46 crores in both the fiscal years ending March 2024 and March 2025, reflecting a plateau after a significant rebound from ₹29.83 crores in March 2023. This follows a peak of ₹93.05 crores in March 2022, indicating considerable volatility in top-line performance. The absence of other operating income throughout these years suggests reliance solely on core business activities for revenue generation.
On the expenditure front, total operating costs excluding depreciation have consistently exceeded revenues in recent years, with ₹85.78 crores recorded in March 2025 against the ₹57.46 crores income. Manufacturing expenses remain the largest cost component, standing at ₹61.77 crores in the latest year, though slightly reduced from ₹66.40 crores the previous year. Employee costs have risen moderately to ₹5.06 crores in March 2025, up from ₹3.40 crores in the prior year.
Operating profit before other income has been negative for the last three years, with a loss of ₹28.32 crores in March 2025. Even after accounting for other income, which was ₹4.08 crores in the latest year, the company reported an operating loss of ₹24.24 crores. This trend extends to the bottom line, where consolidated net losses have persisted, amounting to ₹27.70 crores in March 2025, albeit an improvement from the ₹38.95 crores loss in March 2024.
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Balance Sheet and Financial Position
Prajay Engineers' balance sheet reveals a total asset base of ₹839.39 crores as of March 2025, down from ₹899.96 crores the previous year. Non-current assets have decreased notably from ₹510.03 crores in March 2022 to ₹348.48 crores in the latest fiscal, reflecting possible asset disposals or revaluations. The net block of fixed assets increased to ₹151.21 crores, indicating ongoing capital investments despite the overall asset contraction.
Capital work in progress has declined sharply from ₹274.67 crores in March 2022 to ₹90.43 crores in March 2025, suggesting a slowdown or completion of major projects. Current assets have also reduced from ₹642.72 crores in March 2022 to ₹490.92 crores, with inventories and sundry debtors showing a downward trend, which may impact liquidity.
On the liabilities side, total debt stood at ₹173.38 crores in March 2025, slightly lower than ₹181.88 crores in the prior year. Long-term borrowings constitute the majority of this debt, with secured loans accounting for the entire long-term borrowing amount. Shareholders' funds have decreased from ₹567.08 crores in March 2022 to ₹486.63 crores, reflecting accumulated losses and reserve adjustments.
Cash flow analysis indicates positive operating cash flows of ₹19 crores in March 2025, consistent with the previous year, despite ongoing net losses. Investing activities have seen moderate outflows, while financing activities recorded a net outflow of ₹8 crores, signalling cautious capital management.
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Summary and Outlook
Over the past several years, Prajay Engineers has struggled to achieve consistent profitability, with recurring net losses and negative operating margins. The company’s operating profit margin excluding other income was deeply negative at -49.29% in March 2025, a slight improvement from -59.19% the year before but still indicative of operational challenges. Earnings per share have remained negative, reflecting the ongoing impact of losses on shareholder value.
Despite these headwinds, the company has maintained a sizeable asset base and continues to generate positive operating cash flows, which may provide some cushion for future recovery efforts. However, the decline in reserves and shareholders’ funds, coupled with high manufacturing expenses and fluctuating revenues, underscores the need for strategic initiatives to stabilise and improve financial health.
Investors and market watchers should closely monitor Prajay Engineers’ operational efficiency, project execution, and debt management in the coming periods to assess any signs of sustainable turnaround.
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