How has been the historical performance of Sanrhea Tech.?

Nov 24 2025 11:24 PM IST
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Sanrhea Tech has experienced consistent growth in net sales, rising from 34.31 Cr in Mar'20 to 74.94 Cr in Mar'25, but faced profitability challenges in the most recent year, with profit after tax declining from 5.20 Cr in Mar'24 to 4.72 Cr in Mar'25 and negative cash flow from operating activities at -1.00 Cr in Mar'25. Total assets increased significantly during the same period, reflecting overall growth despite recent profitability issues.




Revenue and Profitability Trends


Sanrhea Tech.'s net sales have shown a consistent upward trend from ₹34.31 crores in March 2020 to ₹74.94 crores in March 2025, reflecting a compound growth trajectory with a brief dip in 2022. The total operating income mirrored this pattern, with no other operating income reported during this period. Raw material costs have risen in line with sales, reaching ₹46.41 crores in the latest fiscal year, while employee costs have also increased steadily, indicating expansion in workforce or wage adjustments.


Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved significantly, rising from ₹1.56 crores in 2020 to ₹9.43 crores in 2025. The operating profit margin has strengthened to 12.58% in the latest year, up from a low of 4.55% in 2020, signalling enhanced operational efficiency. Profit after tax (PAT) recovered from a loss of ₹0.99 crores in 2020 to a positive ₹4.72 crores in 2025, with the PAT margin improving to 6.3%.



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Balance Sheet and Capital Structure


The company’s shareholder funds have expanded robustly from ₹5.76 crores in 2020 to ₹25.30 crores in 2025, supported by rising reserves which grew from ₹1.97 crores to ₹20.30 crores over the same period. This reflects retained earnings accumulation and a strengthening equity base. Share capital increased modestly, indicating possible equity infusion or capital restructuring.


Sanrhea Tech.’s total liabilities have also increased, reaching ₹44.78 crores in 2025 from ₹23.21 crores in 2020, with a notable rise in both short-term borrowings and long-term secured loans. The total debt level climbed to ₹13.30 crores in 2025, up from ₹10.54 crores in 2020, suggesting increased leverage to support growth initiatives.


On the asset side, net block value rose from ₹6.26 crores in 2020 to ₹11.34 crores in 2025, indicating capital expenditure and asset base expansion. Current assets have also grown substantially, with inventories and sundry debtors increasing in line with business scale. Net current assets improved to ₹18.12 crores in 2025, reflecting better working capital management.


Cash Flow and Earnings Metrics


Cash flow from operating activities has fluctuated, with a negative ₹1 crore in 2025 contrasting with positive inflows in prior years. Investing activities consistently showed outflows, reflecting ongoing capital investments. Financing activities in 2025 saw a significant inflow of ₹6 crores, likely linked to debt or equity financing to support expansion.


Earnings per share (EPS) have generally trended upwards, recovering from a negative ₹2.61 in 2020 to ₹9.44 in 2025, underscoring the company’s return to profitability and improved shareholder value. Book value per share also rose markedly from ₹15.19 in 2020 to ₹50.6 in 2025, highlighting enhanced net asset value per share.



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Summary of Historical Performance


Overall, Sanrhea Tech. has demonstrated a commendable recovery and growth trajectory over the past six years. The company overcame a challenging phase in 2020 marked by losses and low margins, subsequently achieving sustainable profitability and margin expansion. The steady increase in revenues, operating profits, and net profits reflects operational improvements and market traction.


Financial stability is evident in the growing shareholder funds and reserves, although the rise in debt levels warrants monitoring to ensure leverage remains manageable. Asset growth and improved working capital position support the company’s operational scale-up. Cash flow patterns suggest ongoing investment in growth, balanced by financing inflows.


Investors may find the improving earnings per share and book value per share encouraging, signalling enhanced returns and intrinsic value. However, the company’s historical fluctuations underline the importance of continued operational discipline and prudent financial management going forward.





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