Revenue and Profit Growth
Ratnaveer Precis has seen its net sales surge from ₹426.94 crores in March 2022 to ₹891.88 crores by March 2025, effectively more than doubling over this three-year span. This growth reflects a strong market demand and operational expansion. Correspondingly, the total operating income mirrored this upward trend, with no other operating income reported during this period.
On the profitability front, the company’s operating profit before depreciation and interest (PBDIT) excluding other income rose from ₹27.53 crores in 2022 to ₹86.39 crores in 2025, indicating improved operational efficiency. Including other income, the operating profit increased to ₹90.42 crores in the latest fiscal year. Profit before tax also showed a healthy rise, climbing from ₹13.45 crores in 2022 to ₹60.65 crores in 2025. After accounting for taxes, the profit after tax (PAT) expanded from ₹9.48 crores to ₹46.82 crores, underscoring consistent bottom-line growth.
Operating profit margins improved notably, reaching 9.69% in 2025 compared to 6.45% in 2022, while PAT margins held steady around 5.2% in recent years, more than doubling from 2.22% in 2022. Earnings per share (EPS) also reflected this positive trend, rising from ₹2.78 in 2022 to ₹8.79 in 2025, signalling enhanced shareholder returns.
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Cost Structure and Expenditure
The company’s raw material costs have increased in line with sales, rising from ₹373.52 crores in 2022 to ₹796.85 crores in 2025. Despite this, Ratnaveer Precis managed to maintain a reasonable gross profit margin, which improved from 4.07% in 2022 to 8.72% in 2025. Other expenses fluctuated but remained significant, with ₹40.69 crores recorded in 2025. Employee costs have also risen modestly, reflecting the company’s scaling operations.
Interest expenses remained relatively stable, around ₹12.68 crores in 2025, while depreciation increased substantially, reflecting ongoing capital investments. The company’s total expenditure excluding depreciation rose from ₹399.41 crores in 2022 to ₹805.49 crores in 2025, consistent with its expanding business activities.
Balance Sheet Strength and Asset Growth
Ratnaveer Precis has strengthened its financial position considerably. Shareholder’s funds surged from ₹65.97 crores in 2022 to ₹370.92 crores in 2025, supported by a rise in equity capital and reserves. The book value per share increased from ₹19.35 to ₹68.3 over the same period, indicating enhanced net asset value per share.
Total assets grew from ₹308.63 crores in 2022 to ₹746.26 crores in 2025, driven by investments in gross block and capital work in progress, which expanded significantly. Net block assets rose from ₹40.79 crores to ₹186.27 crores, while capital work in progress increased from ₹3.67 crores to ₹53.80 crores, signalling ongoing capacity expansion.
Current assets also increased markedly, with inventories rising from ₹171.28 crores to ₹292.85 crores and cash and bank balances more than tripling to ₹65.86 crores. Net current assets improved from ₹51.14 crores to ₹190.41 crores, reflecting better liquidity and working capital management.
Debt and Liabilities
The company’s total debt showed a moderate decline from ₹190.73 crores in 2022 to ₹195.12 crores in 2025, with a shift in composition. Long-term borrowings increased from ₹30.61 crores to ₹56.42 crores, while short-term borrowings decreased from ₹160.12 crores to ₹138.70 crores. This suggests a strategic move towards longer-term financing. Trade payables and other current liabilities rose in line with business growth, but the overall debt levels remain manageable relative to equity.
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Cash Flow Trends
Cash flow from operating activities has shown improvement, turning positive in recent years after a negative phase in 2022. The company generated ₹12 crores from operations in 2024, up from a negative ₹15 crores in 2022. Investing activities have consistently involved cash outflows, reflecting capital expenditure and expansion efforts. Financing activities have provided substantial inflows, particularly in 2024 with ₹80 crores, supporting the company’s growth initiatives.
Net cash inflow increased to ₹29 crores in 2024, with closing cash and cash equivalents rising to ₹59 crores, indicating a stronger liquidity position compared to previous years.
Summary
Overall, Ratnaveer Precis has exhibited strong historical performance characterised by robust revenue growth, improved profitability, and a solidifying balance sheet. The company’s strategic investments in assets and prudent financial management have supported its expansion while maintaining healthy margins. Investors may find the consistent earnings growth and enhanced shareholder value compelling, although attention to cost management and debt structure remains important for sustained performance.
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