Revenue and Profitability Trends
Ramky Infra's net sales have demonstrated a general upward trajectory from ₹1,056.30 crores in March 2021 to ₹2,044.54 crores in March 2025, reflecting a significant recovery and expansion in business activity. The company experienced a dip in sales in the fiscal year ending March 2020, but since then, revenues have steadily increased, peaking at over ₹2,160 crores in March 2024 before a slight decline in the latest year.
Operating profit margins, excluding other income, have shown marked improvement from a negative margin in March 2020 to a healthy 16.45% in March 2025. This indicates enhanced operational efficiency and cost management. The operating profit (PBDIT) excluding other income rose from a loss of ₹45.37 crores in March 2020 to a positive ₹336.25 crores in March 2025.
Other income has remained a consistent contributor, averaging around ₹160 crores annually, bolstering overall profitability. Consequently, the consolidated net profit surged from a loss of ₹266.03 crores in March 2020 to a profit of ₹197.50 crores in March 2025, with a peak profit of over ₹1,140 crores in March 2023, which was influenced by exceptional items that year.
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Cost Structure and Margins
The company's expenditure profile reveals that manufacturing expenses constitute the largest cost component, rising from ₹808.64 crores in March 2021 to ₹1,432.86 crores in March 2025. Employee costs have also increased steadily, reflecting growth in workforce and associated expenses. Other expenses have fluctuated but remained significant, impacting overall cost efficiency.
Despite rising costs, Ramky Infra has managed to improve its gross profit margin substantially, reaching 18.69% in March 2025 compared to negative margins in earlier years. This improvement underscores better pricing power and operational leverage.
Balance Sheet and Financial Position
Ramky Infra's shareholder funds have strengthened considerably, rising from ₹339.80 crores in March 2021 to ₹1,904.33 crores in March 2025. This growth is supported by increasing reserves, which expanded from ₹270.60 crores to ₹1,835.13 crores over the same period, indicating retained earnings and capital accumulation.
The company has successfully reduced its long-term borrowings from ₹1,590.71 crores in March 2021 to ₹121.81 crores in March 2025, signalling a strategic deleveraging effort. However, short-term borrowings remain elevated at ₹448.49 crores in the latest fiscal year, reflecting ongoing working capital requirements.
Total liabilities have remained relatively stable around ₹4,100 crores, while total assets have hovered near ₹4,100 crores as well, indicating a balanced asset-liability structure. The book value per share has improved significantly from ₹49.1 in March 2021 to ₹275.2 in March 2025, reflecting enhanced net worth per share.
Cash Flow Analysis
Cash flow from operating activities has shown strong recovery, rising from ₹222 crores in March 2021 to ₹370 crores in March 2024, with a notable peak of ₹2,610 crores in March 2023. This indicates improved cash generation capability from core operations. Investing activities have generally involved outflows, consistent with capital expenditure and asset acquisition strategies.
Financing activities have seen significant outflows, particularly in March 2023 and 2024, reflecting debt repayments and capital restructuring. Net cash inflows and outflows have fluctuated, with a positive inflow of ₹745 crores in March 2023 and a negative outflow of ₹712 crores in March 2024, highlighting the dynamic nature of the company's liquidity management.
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Summary of Historical Performance
Over the past six years, Ramky Infra has demonstrated a commendable recovery from losses and operational challenges. The company’s revenue base has expanded significantly, supported by improved operating margins and a return to profitability. The balance sheet has been strengthened through reserve accumulation and debt reduction, enhancing financial stability.
While the company faced a sharp profit decline and negative margins around 2020, it has since rebounded with strong earnings growth and better cash flow generation. The reduction in long-term debt and improvement in book value per share further underscore the company’s efforts to solidify its financial footing.
Investors should note the variability in profits, partly influenced by exceptional items in certain years, and the ongoing need to manage working capital and short-term borrowings. Nonetheless, the overall trend points to a company on a recovery and growth path within the infrastructure sector.
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