How has been the historical performance of Sanghvi Movers?

Revenue and Profit Growth

Over the four-year period ending March 2025, Sanghvi Movers’ net sales surged from ₹223.74 crores in March 2021 to ₹782.12 crores in March 2025, representing a remarkable growth of nearly 250%. This substantial increase underscores the company’s expanding operational footprint and market demand for its services. Correspondingly, the total operating income mirrored this trend, rising in tandem with net sales, as there was no other operating income reported during this period.

Profitability has also improved markedly. The company moved from a loss after tax of ₹22.42 crores in March 2021 to a profit after tax of ₹156.52 crores in March 2025. This turnaround is significant, highlighting effective cost management and operational efficiencies. The operating profit margin, excluding other income, improved from 38.96% in March 2021 to 42.24% in March 2025, although it peaked at 56.36% in March 2023 before moderating. The profit after tax margin similarly advanced from a negative margin to a positive 20.01% by March 2025.

Employee costs and other expenses rose in absolute terms, reflecting the company’s scaling operations, but total expenditure excluding depreciation remained well controlled relative to revenue growth. Interest expenses fluctuated but showed a downward trend from ₹26.30 crores in March 2021 to ₹25.88 crores in March 2025, despite the company increasing its borrowings.

Balance Sheet and Asset Base Expansion

Sanghvi Movers’ balance sheet reflects a consistent strengthening of shareholder funds, which increased from ₹733.93 crores in March 2022 to ₹1,142.53 crores in March 2025. This growth was supported by rising reserves, which expanded from ₹700.34 crores in March 2021 to ₹1,133.87 crores in March 2025, indicating retained earnings and capital accumulation.

The company’s total liabilities rose from ₹964.20 crores in March 2022 to ₹1,765.28 crores in March 2025, driven largely by increased borrowings. Long-term borrowings more than doubled, reaching ₹303.03 crores, while short-term borrowings also saw a significant rise to ₹206.43 crores. Despite this, the company maintained a healthy net block of fixed assets, which grew from ₹765.85 crores in March 2022 to ₹1,113.42 crores in March 2025, reflecting ongoing capital investments and asset additions.

Current assets expanded substantially, with total current assets rising from ₹178.48 crores in March 2022 to ₹582.89 crores in March 2025. This increase was supported by higher sundry debtors and current investments, indicating improved liquidity and working capital management. Net current assets also improved, signalling a stronger short-term financial position.

Cash Flow and Financial Health

Cash flow from operating activities showed resilience, with ₹161 crores generated in March 2025, albeit lower than the ₹257 crores recorded in March 2023. Investing activities reflected significant outflows, increasing to ₹286 crores in March 2025, consistent with the company’s capital expenditure and asset growth. Financing activities turned positive in the latest year, with ₹89 crores inflow, contrasting with outflows in previous years, indicating fresh borrowings or capital injections.

Despite these movements, the net cash position declined slightly, with a net outflow of ₹35 crores in March 2025, following modest inflows in prior years. The closing cash and cash equivalents stood at ₹3 crores, down from ₹12 crores in March 2023, suggesting tighter liquidity but manageable within the broader asset base.

Summary of Historical Performance

In summary, Sanghvi Movers has exhibited a strong upward trajectory in revenue and profitability over the past four years. The company successfully transitioned from losses to sustained profits, supported by expanding operational scale and effective cost control. Its balance sheet has strengthened with growing reserves and shareholder funds, although debt levels have increased to finance asset growth and capital expenditure.

Margins have shown some variability but remain healthy, reflecting the company’s ability to manage expenses amid growth. Cash flow dynamics indicate active investment and financing strategies, with operating cash generation remaining robust. Overall, Sanghvi Movers’ historical performance portrays a company on a growth path with improving financial health and operational efficiency, positioning it well for future opportunities in its sector.

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