Revenue and Profitability Trends
Over the past five years, R Systems International’s net sales have shown a robust upward trajectory, rising from ₹809.38 crores in 2019 to ₹1,741.73 crores in 2024. This represents a compound growth that underscores the company’s expanding market presence and operational scale. The total operating income mirrors this trend, with no other operating income reported, indicating that core business activities drive revenue growth.
Operating profit before depreciation and interest (PBDIT) excluding other income has also improved significantly, increasing from ₹73.01 crores in 2019 to ₹256.96 crores in 2024. Including other income, operating profit rose to ₹265.27 crores in 2024, reflecting stable operational efficiency. The operating profit margin has remained healthy, fluctuating around 14-15% in recent years, which is a positive indicator of cost control and pricing power.
Profit after tax (PAT) has grown from ₹58.12 crores in 2019 to ₹131.18 crores in 2024, although it peaked slightly higher in 2021 at ₹141.44 crores. The PAT margin has seen some variation, reaching a high of 12.24% in 2021 before moderating to 7.53% in 2024. Earnings per share (EPS) have correspondingly increased from ₹4.86 in 2019 to ₹11.09 in 2024, reflecting improved profitability on a per-share basis.
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Cost Structure and Expenditure
The company’s expenditure profile reveals that employee costs have been the largest component, rising steadily from ₹546.21 crores in 2019 to ₹1,191.12 crores in 2024. Other expenses have also increased but at a more moderate pace, reaching ₹293.65 crores in 2024. Notably, there are no reported raw material or manufacturing expenses, consistent with the company’s service-oriented business model.
Interest expenses have remained relatively low and stable, around ₹8 crores in recent years, which supports healthy net profitability. Depreciation has increased in line with asset growth, reflecting ongoing investments in fixed assets and intangible developments.
Balance Sheet and Asset Growth
R Systems International’s total assets have expanded from ₹486.60 crores in 2019 to ₹1,176.38 crores in 2024, indicating significant capital investment and business expansion. Shareholders’ funds have grown correspondingly from ₹338.23 crores to ₹624.05 crores, supported by rising reserves which reached ₹612.22 crores in 2024. The book value per share has improved from ₹28.28 in 2019 to ₹52.75 in 2024, signalling enhanced net worth per share.
Long-term borrowings have decreased from a peak of ₹8.36 crores in 2020 to ₹1.30 crores in 2024, reflecting a reduction in debt levels and improved financial leverage. Current liabilities have fluctuated but remain manageable relative to current assets, which stood at ₹581.06 crores in 2024. The company’s net current assets have shown variability but generally indicate a comfortable liquidity position.
Cash Flow and Financial Health
Cash flow from operating activities has strengthened over the years, rising from ₹64 crores in 2019 to ₹235 crores in 2024. This improvement highlights the company’s ability to generate cash internally to support operations and investments. Investing activities have seen some fluctuations, with a notable outflow in 2023 but a positive inflow in 2024, suggesting strategic asset management.
Financing activities have generally involved outflows, particularly in recent years, indicating repayments of debt or dividend distributions. The net cash inflow in 2024 was ₹32 crores, improving from a negative outflow in 2023, which points to a stabilising cash position. Closing cash and cash equivalents stood at ₹190 crores in 2024, up from ₹110 crores in 2019, further affirming liquidity strength.
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Summary of Historical Performance
In summary, R Systems International has exhibited a strong and consistent growth pattern over the last five years. Revenue has more than doubled, supported by rising employee costs and other operating expenses that have been managed effectively to maintain healthy operating margins. Profitability metrics such as PAT and EPS have improved substantially, reflecting operational efficiency and prudent financial management.
The company’s balance sheet has strengthened with increasing shareholder equity and controlled debt levels, while asset growth indicates ongoing investment in business capabilities. Cash flow trends confirm robust operational cash generation and a stable liquidity position, which bodes well for future growth prospects.
While profit margins have seen some moderation from peak levels, the overall financial health and performance trajectory remain positive. Investors may find the company’s historical performance indicative of a well-managed enterprise with solid fundamentals and growth potential.
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