Revenue and Profit Growth
Over the fiscal years ending March 2023 to March 2025, Pritika Engineer's net sales have shown a robust increase from ₹82.32 crores to ₹117.38 crores, representing a compound growth trend. This rise in revenue has been accompanied by a proportional increase in raw material costs and other expenses, yet the company has successfully expanded its operating profit (PBDIT) from ₹10.42 crores in March 2023 to ₹18.54 crores in March 2025. The operating profit margin improved from 12.5% to 15.56% during this period, signalling enhanced operational efficiency.
Profit before tax also rose steadily from ₹4.00 crores in March 2023 to ₹7.22 crores in March 2025, while profit after tax increased from ₹3.28 crores to ₹5.74 crores. Despite a slight dip in earnings per share (EPS) in March 2024, the EPS rebounded strongly to ₹2.18 in March 2025, reflecting the company's ability to generate shareholder value amid changing capital structures.
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Balance Sheet and Capital Structure
The company’s shareholder funds have grown from ₹27.38 crores in March 2023 to ₹45.49 crores in March 2025, supported by an increase in reserves from ₹16.50 crores to ₹32.31 crores. This growth indicates a strengthening equity base. However, total liabilities have also risen from ₹96.12 crores to ₹155.36 crores, largely driven by an increase in long-term borrowings from ₹18.42 crores to ₹46.15 crores and short-term borrowings from ₹14.53 crores to ₹24.99 crores. The rise in debt levels suggests the company has been leveraging external financing to support its expansion and capital expenditure.
On the asset side, net block value has doubled from ₹46.08 crores to ₹92.89 crores, reflecting significant investment in fixed assets. Capital work in progress also increased notably, indicating ongoing projects or capacity enhancements. Current assets have grown steadily, with inventories rising from ₹15.49 crores to ₹26.09 crores and sundry debtors increasing moderately, which may imply higher working capital requirements.
Cash Flow and Operational Efficiency
Cash flow from operating activities turned positive in the latest fiscal year, reaching ₹22.00 crores after being negative in the previous two years. This improvement was supported by favourable changes in working capital, which shifted from negative ₹21.00 crores in March 2023 to a positive ₹4.00 crores in March 2025. However, cash flow from investing activities remained negative, reflecting continued capital expenditure. Financing activities showed a decline in inflows in the latest year compared to earlier periods, indicating a possible reduction in new borrowings or repayments.
The company’s profit margins have shown resilience, with the PAT margin improving slightly to 4.89% in March 2025 from 3.85% in March 2024. This margin expansion, alongside rising operating profit margins, suggests better cost management and pricing power despite inflationary pressures on raw materials and employee costs.
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Summary of Historical Performance
In summary, Pritika Engineer has exhibited a commendable growth pattern over the last three years, with net sales increasing by over 40%, operating profits nearly doubling, and shareholder equity expanding significantly. The company has managed to improve its profitability margins despite rising costs and has invested substantially in fixed assets to support future growth. While the increase in borrowings warrants attention, the positive cash flow from operations and improved working capital management provide a solid foundation for sustainable performance.
Investors analysing Pritika Engineer should consider both its growth trajectory and capital structure dynamics. The company’s ability to maintain steady profit margins and generate operating cash flow is encouraging, but the rising debt levels highlight the importance of monitoring financial leverage going forward.
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