Revenue and Profit Trends
Over the seven-year period ending March 2025, Precision Camshf’s net sales exhibited a general upward trend with some volatility. The company’s revenue peaked at over ₹1,080 crores in March 2023 before declining to ₹865 crores in March 2025. This decline followed a strong recovery from a low of ₹695 crores in March 2019. The total operating income mirrored this pattern, reflecting the absence of other operating income throughout the period.
Operating profit before depreciation and interest (PBDIT) excluding other income showed a downward trajectory from ₹126 crores in March 2019 to ₹81 crores in March 2025, indicating margin pressures. However, when including other income, operating profit remained relatively robust, with ₹114 crores reported in the latest fiscal year. The company’s profit before tax improved significantly from ₹30 crores in March 2019 to ₹83 crores in March 2025, despite fluctuations in exceptional items and interest expenses.
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Cost Structure and Margins
The company’s raw material costs have varied considerably, peaking at nearly ₹500 crores in March 2023 before falling to ₹269 crores in March 2025. Employee costs steadily increased from ₹121 crores in March 2019 to ₹172 crores in March 2025, reflecting possible workforce expansion or wage inflation. Other expenses also rose from ₹220 crores in March 2020 to ₹314 crores in March 2025.
Operating profit margins excluding other income declined from a high of 18.14% in March 2019 to 9.35% in March 2025, signalling tightening profitability. Gross profit margins fluctuated but remained in the range of 12.5% to 17%, with the latest figure at 16.23%. The profit after tax margin improved to 6.25% in March 2025 from a negative margin in March 2021, indicating a recovery in bottom-line performance.
Balance Sheet and Financial Position
Shareholders’ funds have grown steadily from ₹618 crores in March 2020 to ₹793 crores in March 2025, supported by rising reserves. The company has successfully reduced its long-term borrowings from ₹152 crores in March 2020 to just ₹2.3 crores in March 2025, signalling a significant deleveraging effort. However, short-term borrowings remain elevated at ₹94 crores in the latest fiscal year.
Net block of fixed assets declined from ₹444 crores in March 2020 to ₹283 crores in March 2025, possibly reflecting asset sales or depreciation outpacing capital expenditure. Capital work in progress increased notably to ₹58 crores in March 2025, suggesting ongoing investments. Total liabilities have remained broadly stable around ₹1,070 crores, while total assets have increased modestly to ₹1,077 crores in March 2025.
Cash Flow and Liquidity
Cash flow from operating activities has shown a positive trend, rising from ₹57 crores in March 2020 to ₹143 crores in March 2025. Investing activities have consistently been cash outflows, reflecting capital expenditure and investments, with ₹123 crores spent in the latest year. Financing activities have generally been cash outflows, indicating debt repayments and other financing costs. The company’s closing cash and cash equivalents improved to ₹48 crores in March 2025, up from ₹27 crores in March 2020, supporting liquidity.
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Summary and Outlook
Precision Camshf’s historical performance reveals a company that has navigated through periods of revenue volatility and margin compression while strengthening its balance sheet by reducing long-term debt. Earnings per share have improved from ₹1.21 in March 2019 to ₹5.70 in March 2025, reflecting enhanced profitability and operational efficiency. The company’s book value per share has also increased steadily, indicating value accretion for shareholders.
Despite challenges in maintaining consistent revenue growth, the firm’s ability to generate positive operating cash flows and manage liabilities suggests a stable financial footing. Investors should consider these factors alongside sector dynamics and market conditions when evaluating Precision Camshf’s future prospects.
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