Revenue and Profitability Trends
Over the six-year period, RDB Infrastruc.'s net sales exhibited a notable increase, rising from ₹37.39 crores in March 2018 to a peak of ₹128.56 crores in March 2023 before moderating to ₹110.29 crores in March 2024. This growth reflects the company's expanding operational scale, although the dip in the latest fiscal year suggests some volatility or market challenges.
Operating profit margins, excluding other income, have shown considerable improvement, climbing from 23.88% in 2018 to a robust 34.79% in 2024. This indicates enhanced operational efficiency and cost management despite fluctuating sales. The operating profit (PBDIT) rose substantially from ₹8.93 crores in 2018 to ₹46.66 crores in 2024, underscoring the company's ability to convert revenue into earnings effectively.
Profit after tax (PAT) also followed an upward trend, increasing from ₹3.77 crores in 2018 to ₹20.62 crores in 2024. The PAT margin improved from 10.08% to 18.7% over the same period, signalling stronger bottom-line performance. However, earnings per share (EPS) showed some inconsistency, peaking at ₹9.13 in 2023 before falling to ₹1.11 in 2024, which may reflect extraordinary items or changes in share structure.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Cost Structure and Expenditure
The company's total expenditure excluding depreciation increased from ₹28.46 crores in 2018 to ₹71.92 crores in 2024, reflecting the scale of operations. Manufacturing expenses have been a significant component, rising sharply to ₹161.37 crores in 2024 from negligible levels in 2018, indicating increased production activity or input costs. Employee costs have remained relatively stable, suggesting controlled labour expenses.
Interestingly, the company recorded negative values in the (Increase)/Decrease in stocks category, with a large negative figure in 2024, which may indicate inventory build-up or accounting adjustments. Selling and distribution expenses have fluctuated, with some years showing negative values, possibly due to accounting treatments or reversals.
Balance Sheet and Financial Position
RDB Infrastruc.'s total assets have grown substantially from ₹427.17 crores in 2018 to ₹999 crores in 2023, reflecting asset accumulation and business expansion. Shareholders' funds increased steadily to ₹168.54 crores in 2023, supported by rising reserves, which reached ₹151.25 crores. The book value per share improved from ₹7.62 in 2018 to ₹95.45 in 2023, indicating enhanced net asset value per share.
However, the company's debt levels have also escalated, with total debt rising from ₹69.98 crores in 2018 to ₹496.30 crores in 2023. Both long-term and short-term borrowings have increased, which may raise concerns about leverage and financial risk. Current liabilities have similarly expanded, driven by higher trade payables and other current liabilities.
Cash Flow Analysis
Cash flow from operating activities has been negative in recent years, with a significant outflow of ₹29 crores in 2023 and even larger negative flows in prior years. This suggests challenges in converting profits into cash, possibly due to working capital demands or inventory accumulation. Investing activities have seen minor fluctuations, while financing activities have generally provided positive inflows, indicating reliance on external funding to support operations and growth.
RDB Infrastruc. or something better? Our SwitchER feature analyzes this Microcap Realty stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Historical Performance
In summary, RDB Infrastruc. has experienced considerable growth in revenue and profitability over the past six years, supported by improved operating margins and increasing net profits. The company’s asset base and shareholder equity have expanded significantly, reflecting business development and capital accumulation. However, rising debt levels and negative operating cash flows highlight potential financial risks and liquidity challenges that investors should monitor closely.
The fluctuations in earnings per share and the recent dip in net sales suggest some volatility in operational performance. Nonetheless, the overall trend points to a company that has scaled its operations and improved profitability, albeit with increased leverage and working capital pressures.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
