Revenue and Profit Growth
Over the past seven years, Saksoft’s net sales have shown a robust increase, rising from ₹358.05 crores in March 2019 to ₹883.01 crores by March 2025. This represents a compound growth trend reflecting the company’s expanding market presence and operational scale. The total operating income mirrors this growth, with no other operating income reported, indicating that core business activities are the primary revenue drivers.
Profitability has also improved significantly. Operating profit before other income (PBDIT) increased from ₹59.17 crores in March 2019 to ₹146.25 crores in March 2025, while the overall operating profit including other income rose to ₹163.08 crores in the latest fiscal year. The profit after tax (PAT) has more than doubled over this period, climbing from ₹38.21 crores in March 2019 to ₹108.80 crores in March 2025, underscoring effective cost management and operational efficiency.
Margins have remained relatively stable, with the operating profit margin (excluding other income) hovering around 16-18%, and the PAT margin maintaining a healthy range between 10.67% and 13.17% over the years. This consistency highlights Saksoft’s ability to sustain profitability despite market fluctuations.
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Cost Structure and Expenditure
The company’s expenditure profile reveals a steady increase in employee costs, rising from ₹165.42 crores in March 2019 to ₹415.44 crores in March 2025, reflecting workforce expansion and possibly wage inflation. Manufacturing expenses have also grown from ₹91.40 crores to ₹268.14 crores over the same period, indicating increased operational activity. Other expenses have fluctuated but generally trended upwards, consistent with business growth.
Total expenditure excluding depreciation has risen in line with revenue, maintaining a balanced cost-to-income ratio. Interest expenses have increased modestly, reaching ₹8.50 crores in March 2025, but remain manageable relative to earnings.
Balance Sheet Strength and Asset Growth
Saksoft’s total assets have expanded significantly from ₹300.48 crores in March 2020 to ₹978.75 crores in March 2025. This growth is supported by increases in both fixed assets and current assets. Net block of assets has more than tripled, indicating substantial investment in infrastructure and technology.
Shareholders’ funds have also strengthened, rising from ₹206.18 crores in March 2020 to ₹619.10 crores in March 2025, reflecting retained earnings and capital infusion. The company’s reserves have grown steadily, supporting a rising book value per share, which reached ₹48.70 in March 2025, up from ₹16.59 in March 2020.
While long-term borrowings have increased to ₹32.61 crores in March 2025 from zero in March 2023, the overall debt level remains low, with total debt effectively cleared in the latest fiscal year. This conservative leverage profile enhances financial stability.
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Cash Flow and Liquidity
Cash flow from operating activities has shown a positive trend, increasing from ₹56 crores in March 2020 to ₹111 crores in March 2025. This improvement indicates enhanced cash generation capability from core operations. Investing activities have consistently involved outflows, reflecting ongoing capital expenditure and investments, with ₹105 crores spent in the latest year.
Financing activities have varied, with a net inflow of ₹21 crores in March 2025, contrasting with outflows in previous years. The company’s closing cash and cash equivalents have grown substantially, reaching ₹168 crores in March 2025, providing a strong liquidity buffer.
Conclusion
Overall, Saksoft’s historical performance reveals a company on a solid growth path, with expanding revenues, improving profitability, and a strengthening balance sheet. Its consistent operating margins and growing cash flows underscore operational resilience. While the company has increased its borrowings modestly, it maintains a conservative debt profile. Investors seeking a fundamentally sound small-cap IT services firm may find Saksoft’s track record compelling, though comparative analysis with peers is advisable for portfolio optimisation.
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