How has been the historical performance of Ram Ratna Wires?

Revenue and Profit Growth

Over the past seven years, Ram Ratna Wires has seen its net sales rise significantly, from approximately ₹1,423 crores in March 2019 to ₹3,677 crores in March 2025. This represents a robust compound growth, reflecting the company’s expanding market presence and demand for its products. Total operating income followed a similar pattern, with no other operating income reported, indicating that core business activities have been the primary revenue drivers.

Operating profit before other income (PBDIT) has also improved markedly, increasing from ₹67.17 crores in 2019 to ₹156.29 crores in 2025. When factoring in other income, operating profit rose to ₹174.09 crores in the latest fiscal year, up from ₹70.94 crores six years prior. This growth underscores effective cost management and operational efficiencies despite rising raw material costs, which climbed from ₹1,293 crores to ₹3,355 crores over the same period.

Profitability and Margins

Profit before tax has shown a steady increase, reaching ₹98.29 crores in March 2025 from ₹25.48 crores in March 2019. Correspondingly, profit after tax rose to ₹71.33 crores in the latest fiscal year, more than quadrupling from ₹16.78 crores six years earlier. The consolidated net profit followed this trend, climbing to ₹70.15 crores in 2025 from ₹15.63 crores in 2019.

Operating profit margins have remained relatively stable, fluctuating between 4.0% and 4.8% over the years, with a slight dip to 4.25% in 2025. The PAT margin has also improved, reaching 1.91% in 2025 compared to 1.12% in 2019, indicating enhanced profitability despite increasing costs and interest expenses.

Earnings per share (EPS) have reflected this growth, rising from ₹7.10 in 2019 to ₹15.93 in 2025, demonstrating improved returns for shareholders. The book value per share has also increased significantly, from ₹45.52 in 2021 to ₹109.75 in 2025, highlighting the strengthening equity base.

Balance Sheet and Financial Position

Ram Ratna Wires has expanded its asset base substantially, with total assets growing from ₹646 crores in 2021 to ₹1,300 crores in 2025. Shareholders’ funds have more than doubled in this period, reaching ₹483 crores in 2025. The company’s long-term borrowings have increased to ₹191 crores in 2025 from ₹106 crores in 2021, reflecting investments in capacity expansion and capital work in progress, which surged to ₹113 crores in 2025 from just ₹3.43 crores in 2021.

Trade payables and current liabilities have also risen, consistent with the company’s growing scale of operations. Notably, total debt reported was zero in 2025, indicating a possible repayment or restructuring of borrowings compared to previous years when debt levels were higher.

Cash Flow Trends

Operating cash flow has improved significantly, with cash generated from operations reaching ₹227 crores in 2025, up from ₹64 crores in 2023 and a negative cash flow in 2021. However, investing activities have seen substantial outflows, particularly in 2025 with ₹267 crores spent, likely linked to capital expenditure and expansion initiatives. Financing activities have been relatively muted, with a small inflow of ₹3 crores in 2025 following larger outflows in prior years.

Despite these investments, the company’s net cash position declined slightly in 2025, ending with ₹1 crore in cash and cash equivalents, down from ₹39 crores in 2024. This suggests a focus on growth and asset build-up, balanced with prudent liquidity management.

Summary of Historical Performance

In summary, Ram Ratna Wires has exhibited a strong and consistent growth pattern over the last several years. The company’s revenue and profitability have expanded steadily, supported by effective cost control and operational efficiencies. Its balance sheet has strengthened with increased shareholder equity and controlled debt levels, while cash flow from operations has improved markedly despite significant capital investments.

Margins have remained stable, and earnings per share have more than doubled, reflecting enhanced shareholder value. The company’s strategic investments in fixed assets and capital work in progress indicate a focus on long-term growth. While cash reserves have tightened recently, the overall financial health remains robust, positioning Ram Ratna Wires well for future opportunities.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →