Revenue and Profit Growth
Over the seven-year period ending March 2025, Rungta Irrigatn. has seen its net sales surge from ₹57.74 crores in March 2019 to ₹219.35 crores in March 2025. This represents a compound growth trajectory, with particularly strong jumps between 2021 and 2025. The total operating income mirrored this trend, reflecting the company’s expanding market presence and sales volume.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved markedly, turning from a loss of ₹2.92 crores in March 2020 to a positive ₹11.22 crores in March 2025. Including other income, operating profit rose to ₹13.23 crores in the latest fiscal year, underscoring enhanced operational efficiency and income diversification.
Profit before tax (PBT) increased steadily from ₹1.19 crores in March 2019 to ₹8.82 crores in March 2025, while profit after tax (PAT) rose from ₹0.58 crores to ₹6.22 crores over the same period. Earnings per share (EPS) followed suit, climbing from ₹0.65 in 2019 to ₹3.12 in 2025, reflecting improved shareholder returns.
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Cost Structure and Margins
The company’s raw material costs have increased in line with sales, rising from ₹36.70 crores in 2019 to ₹114.60 crores in 2025. Purchase of finished goods also saw a significant rise, particularly from ₹0.00 crores in 2019 to ₹41.23 crores in 2025, indicating a strategic shift or expansion in product sourcing. Employee costs have grown steadily but remain controlled relative to revenue, increasing from ₹6.46 crores to ₹10.45 crores over the period.
Operating profit margins excluding other income improved from a negative margin in 2020 to 5.12% in 2025, signalling enhanced operational leverage and cost management. Gross profit margins have fluctuated but remained around the 4-6% range, while PAT margins have improved from 1.0% in 2019 to 2.84% in 2025, reflecting better bottom-line efficiency.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds increased from ₹72.88 crores in 2016 to ₹76.63 crores in 2017, with reserves rising consistently to ₹73.22 crores by 2025. Total liabilities stood at ₹112.20 crores in 2017, with a notable increase in short-term borrowings from ₹9.19 crores in 2016 to ₹17.58 crores in 2017, indicating a reliance on working capital financing.
Net block of fixed assets grew from ₹8.46 crores in 2016 to ₹11.33 crores in 2017, showing moderate capital expenditure. Current assets, including investments and inventories, also increased, supporting the company’s expanding operations. The book value per share adjusted rose from ₹82.29 in 2016 to ₹86.53 in 2017, signalling incremental value creation for shareholders.
Cash Flow Trends
Cash flow from operating activities showed volatility, with a negative ₹10.50 crores in 2017 compared to a positive ₹1.75 crores in 2016, largely due to changes in working capital. Investing activities generated positive cash inflows, while financing activities provided substantial inflows in 2017, reflecting capital raising or debt management efforts. The net cash position remained stable, with closing cash and equivalents slightly increasing to ₹2.41 crores in 2017.
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Summary and Outlook
Rungta Irrigatn. has exhibited robust growth in revenue and profitability over recent years, overcoming earlier periods of losses to establish positive operating and net margins. The company’s expanding sales base, improved cost controls, and steady balance sheet enhancements suggest a strengthening financial foundation. While working capital management remains an area to monitor given cash flow fluctuations, the overall trajectory points to a company gaining operational momentum and delivering increasing value to shareholders.
Investors analysing Rungta Irrigatn. should consider its consistent earnings growth and improving margins alongside its capital structure and cash flow dynamics to assess future potential within the irrigation and related industrial sectors.
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