Revenue and Profit Growth
Over the fiscal years ending March 2022 to March 2025, RIR Power Electr’s net sales have shown a robust upward trend, increasing from ₹42.33 crores in March 2022 to ₹86.21 crores in March 2025. This near doubling of sales within three years highlights the company’s expanding market presence and operational scale. Correspondingly, total operating income mirrored this growth, with no other operating income reported during this period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose steadily from ₹4.86 crores in March 2022 to ₹11.17 crores in March 2025. Including other income, operating profit increased from ₹6.49 crores to ₹13.21 crores over the same timeframe. Profit before tax more than doubled, reaching ₹10.37 crores in March 2025 from ₹3.69 crores in March 2022, while profit after tax climbed from ₹2.81 crores to ₹7.63 crores.
Despite the positive profit trajectory, operating profit margins excluding other income slightly contracted from 14.83% in March 2024 to 12.96% in March 2025, reflecting rising costs. Similarly, the profit after tax margin decreased from 10.53% to 8.85% in the latest fiscal year, indicating some pressure on profitability ratios amid expanding scale.
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Cost Structure and Expenses
The company’s raw material costs have risen in line with sales, from ₹26.62 crores in March 2022 to ₹49.96 crores in March 2025, reflecting increased production activity. Purchase of finished goods fluctuated but remained relatively stable, while employee costs increased steadily, reaching ₹10.11 crores in the latest year. Other expenses also rose, indicating higher operational outlays as the company scaled.
Interest expenses have increased moderately from ₹0.64 crores in March 2022 to ₹1.88 crores in March 2025, consistent with the company’s borrowing profile. Depreciation charges remained fairly stable, suggesting steady asset utilisation without significant new capitalisation in fixed assets.
Balance Sheet Strength and Asset Base
RIR Power Electr’s total assets have expanded significantly, from ₹66.53 crores in March 2022 to ₹152.34 crores in March 2025. This growth is driven by increases in both non-current and current assets. Notably, intangible assets under development appeared in the latest year, amounting to ₹42.99 crores, indicating investment in future capabilities.
Capital work in progress also rose steadily, reflecting ongoing expansion projects. Shareholder’s funds have more than quadrupled from ₹26.13 crores in March 2022 to ₹114.62 crores in March 2025, supported by a substantial increase in reserves, which grew from ₹19.23 crores to ₹100.89 crores over the same period.
On the liabilities side, total debt decreased from ₹28.91 crores in March 2022 to ₹18.79 crores in March 2025, signalling a reduction in leverage. However, short-term borrowings remain significant, suggesting reliance on working capital financing. Trade payables and other current liabilities have increased moderately, consistent with the company’s larger scale of operations.
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Cash Flow and Liquidity
Cash flow from operating activities has been modest, with ₹1 crore reported in both March 2024 and March 2025, after a negative outflow in March 2022. Investing activities have seen significant outflows, particularly ₹50 crores in March 2025, reflecting aggressive capital expenditure or acquisitions. Financing activities have provided substantial inflows, with ₹27 crores raised in the latest year, supporting the company’s investment and working capital needs.
Despite these inflows, the company reported a net cash outflow of ₹21 crores in March 2025, indicating a cash burn linked to expansion efforts. The closing cash and cash equivalents stood at zero in March 2025, down from ₹21 crores the previous year, highlighting tight liquidity conditions that may require monitoring.
Summary
RIR Power Electr’s historical performance reflects a company in growth mode, with strong revenue and profit increases over recent years. The expansion of shareholder equity and asset base supports this narrative, although margins have slightly compressed amid rising costs. The company’s balance sheet shows a reduction in overall debt but continued reliance on short-term borrowings. Cash flow patterns suggest ongoing investment and financing activity, with liquidity remaining a key area for attention.
Investors analysing RIR Power Electr should weigh its growth prospects against margin pressures and cash flow dynamics, considering the company’s strategic investments and evolving financial structure.
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