How has been the historical performance of Remsons Ind.?

Revenue and Profitability Trends

Over the five-year period ending March 2025, Remsons Ind. has seen its net sales rise from ₹226.15 crores in March 2021 to ₹376.58 crores in March 2025. This represents a compound growth that underscores the company’s expanding market presence. Operating profit margins have also improved, with the operating profit (PBDIT) excluding other income increasing from ₹10.16 crores in 2021 to ₹37.36 crores in 2025. The operating profit margin has nearly doubled, moving from 4.49% to 9.92% in the same timeframe, reflecting enhanced operational efficiency.

Profit after tax (PAT) has followed a similar upward trend, rising from ₹4.49 crores in March 2021 to ₹16.96 crores in March 2025. The PAT margin has improved from 1.99% to 4.5%, indicating better cost management and profitability. Earnings per share (EPS) have also shown growth, with the latest figure at ₹4.12, up from ₹7.86 in 2021, though the EPS figures reflect adjustments in equity capital and face value over the years.

Cost Structure and Expenditure

The company’s total expenditure excluding depreciation has increased in line with revenue growth, from ₹215.99 crores in 2021 to ₹339.22 crores in 2025. Raw material costs remain the largest expense, rising from ₹152.36 crores to ₹199.94 crores over the period. Employee costs have also grown significantly, reflecting expansion and possibly wage inflation, increasing from ₹39.58 crores to ₹78.61 crores. Other expenses have nearly doubled, indicating increased operational activities and overheads.

Balance Sheet Strength and Capital Structure

Remsons Ind.’s shareholder funds have expanded substantially, from ₹29.72 crores in 2021 to ₹125.61 crores in 2025, supported by rising reserves which have grown from ₹24.01 crores to ₹118.64 crores. This increase signals retained earnings accumulation and a strengthening equity base. The company’s total liabilities have also risen, reaching ₹312.23 crores in 2025 from ₹165.30 crores in 2021, with long-term borrowings fluctuating but generally increasing to ₹40.58 crores in 2025.

Net block assets have nearly tripled, reflecting capital investments and asset growth, moving from ₹35.11 crores to ₹94.47 crores. Current assets have also increased, with inventories and sundry debtors rising steadily, indicating higher operational scale. Cash and bank balances have fluctuated but remain healthy at ₹14.61 crores in 2025.

Cash Flow and Liquidity

Cash flow from operating activities has shown positive momentum, with ₹15 crores generated in 2024 and ₹27 crores in 2023, indicating solid cash generation capabilities. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure and investments. Financing activities have varied, with inflows and outflows reflecting debt management and capital raising efforts. The closing cash and cash equivalents have fluctuated but remain adequate to support operations, standing at ₹14.61 crores in March 2025.

Overall Assessment

Remsons Ind. has exhibited a robust historical performance characterised by steady revenue growth, improving profitability margins, and a strengthening balance sheet. The company’s ability to increase shareholder funds and maintain positive operating cash flows suggests sound financial health. While liabilities have increased, they appear to be managed alongside asset growth and equity expansion. Investors may find the company’s consistent operational delivery and improving financial metrics encouraging for long-term prospects.

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