How has been the historical performance of Samkrg Pistons?

Revenue and Profitability Trends

Samkrg Pistons’ net sales have experienced a gradual decline from ₹289.10 crores in March 2019 to ₹243.89 crores in March 2025. The peak sales figure in 2019 was followed by a notable dip in subsequent years, with sales hovering around the mid-230s crore mark from 2020 to 2023 before a slight decrease in the latest fiscal year. Other operating income has been negligible in recent years, indicating the company’s reliance primarily on core sales revenue.

Operating profit margins, excluding other income, have contracted from 14.96% in 2019 to 12.83% in 2025, signalling margin pressures possibly due to rising raw material and employee costs. Operating profit (PBDIT) declined from ₹43.26 crores in 2019 to ₹31.30 crores in 2025, reflecting this margin squeeze despite relatively stable sales.

Profit after tax (PAT) has seen a sharper decline, dropping from ₹21.04 crores in 2019 to ₹5.90 crores in 2025. This reduction is partly attributable to increased interest expenses, which rose significantly to ₹6.18 crores in 2025 from ₹1.44 crores in 2019, indicating higher borrowing costs or increased debt levels. Consequently, the PAT margin fell from 7.28% to 2.42% over the same period.

Cost Structure and Operational Efficiency

Raw material costs have remained a significant component of total expenditure, increasing from ₹101.94 crores in 2019 to ₹111.57 crores in 2025, despite the decline in sales. Employee costs have also risen sharply, from ₹52.90 crores in 2019 to ₹60.36 crores in 2025, which may reflect wage inflation or increased headcount. Power costs and other expenses have remained relatively stable, though manufacturing expenses have decreased markedly from ₹35.65 crores in 2019 to just over ₹4 crores in 2025, suggesting operational streamlining or cost-cutting measures.

The company’s total expenditure excluding depreciation has decreased from ₹246.30 crores in 2019 to ₹212.59 crores in 2025, aligning with the lower sales but also indicating efforts to control costs amid margin pressures.

Balance Sheet and Financial Position

Samkrg Pistons’ shareholder funds have grown steadily from ₹149.05 crores in 2020 to ₹193.50 crores in 2025, supported by accumulated reserves rising to ₹182.13 crores. However, total liabilities have also increased, reaching ₹295.36 crores in 2025 from ₹212.23 crores in 2020, driven largely by a rise in both short-term and long-term borrowings. Short-term borrowings surged to ₹37.29 crores in 2025 from ₹14.72 crores in 2020, while long-term borrowings increased to ₹20.50 crores, indicating greater reliance on debt financing.

Net block of fixed assets has slightly declined from ₹140.77 crores in 2020 to ₹133.01 crores in 2025, while capital work in progress has increased significantly to ₹38.58 crores, suggesting ongoing investments in capacity or technology upgrades.

Cash Flow and Liquidity

Operating cash flow has fluctuated over the years, with ₹18 crores generated in 2025 compared to ₹24 crores in 2020. Investing activities have consistently been cash outflows, peaking at ₹33 crores in 2025, reflecting capital expenditure commitments. Financing activities have varied, with a positive inflow of ₹15 crores in 2025, likely linked to increased borrowings. Despite these movements, the company’s cash and bank balances remain modest, around ₹1.22 crores in 2025, underscoring tight liquidity conditions.

Summary and Outlook

Over the six-year period analysed, Samkrg Pistons has faced challenges in maintaining its revenue and profitability levels, with a clear downward trend in net profit margins and earnings per share. The company’s increasing debt levels and rising interest costs have further pressured net profitability. However, steady growth in shareholder funds and ongoing capital investments indicate a commitment to strengthening the business foundation.

Investors should weigh these factors carefully, considering the company’s operational cost pressures and liquidity constraints alongside its efforts to invest in future growth. The historical performance suggests a need for cautious optimism, with potential for recovery contingent on market conditions and internal efficiency improvements.

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