Revenue and Profitability Trends
Over the three-year period ending March 2025, Sayaji Hot. Pune’s net sales have shown a steady upward trajectory, rising from ₹65.68 crores in March 2023 to ₹76.76 crores in March 2025. This represents a compound annual growth rate of approximately 8.3%, reflecting the company’s ability to expand its top line in a competitive hospitality sector.
Operating profit before depreciation and interest (PBDIT) also increased from ₹22.85 crores in March 2023 to ₹25.49 crores in March 2025, although the operating profit margin experienced a slight contraction from 34.79% to 32.54% over the same period. This margin compression suggests rising operational costs, notably in employee expenses and manufacturing overheads, which grew in absolute terms but were managed effectively to sustain profitability.
Profit before tax rose from ₹18.69 crores in March 2023 to ₹23.01 crores in March 2025, while profit after tax improved from ₹13.81 crores to ₹16.95 crores, indicating a healthy net margin expansion from 21.03% to 22.08%. Earnings per share followed suit, increasing from ₹45.28 to ₹55.57, underscoring enhanced shareholder returns.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Cost Structure and Expense Analysis
The company’s total expenditure excluding depreciation rose from ₹42.83 crores in March 2023 to ₹51.78 crores in March 2025. Employee costs increased steadily, reflecting either wage inflation or workforce expansion, reaching ₹13.47 crores in the latest fiscal year. Manufacturing expenses remained relatively stable, while selling and distribution expenses showed a modest rise, consistent with revenue growth.
Other expenses more than doubled from ₹3.27 crores to ₹6.93 crores, which may warrant closer scrutiny for investors seeking to understand the drivers behind this increase. Despite these rising costs, Sayaji Hot. Pune maintained a robust operating profit, signalling effective cost management and operational efficiency.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds expanded significantly from ₹48.42 crores in March 2023 to ₹81.82 crores in March 2025, supported by growing reserves. The company’s total liabilities increased in line with asset growth, with total assets rising from ₹58.16 crores to ₹87.35 crores over the same period.
Notably, the company has substantially reduced its total debt from ₹8.13 crores in March 2023 to just ₹0.32 crores in March 2025, signalling a stronger financial position and lower leverage risk. The book value per share improved markedly from ₹158.93 to ₹268.57, reflecting enhanced net asset value per share and providing a cushion for investors.
Cash Flow and Liquidity
Cash flow from operating activities has moderated from ₹9 crores in March 2023 to ₹4 crores in March 2025, impacted by increasing working capital requirements. The company’s working capital changes have been negative, indicating higher investment in current assets such as receivables and loans and advances. Despite this, the closing cash and bank balances doubled from ₹1.06 crores to ₹2.54 crores, maintaining adequate liquidity.
Investing activities saw a modest outflow in the latest year, while financing activities reflected reduced borrowings and repayments, consistent with the company’s deleveraging strategy. Overall, the net cash inflow remained stable, supporting operational and strategic needs.
Holding Sayaji Hot. Pune from Hotels & Resorts? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary and Investor Considerations
Sayaji Hot. Pune’s historical performance reveals a company on a steady growth path, with rising revenues, improving profitability, and a strengthening balance sheet. The reduction in debt levels and increase in shareholder equity enhance its financial stability, while consistent earnings growth supports attractive returns for shareholders.
However, investors should note the slight compression in operating margins and the increase in other expenses, which could impact future profitability if not managed carefully. The company’s working capital demands have also increased, which may affect cash flow dynamics going forward.
Overall, Sayaji Hot. Pune presents a solid track record of financial discipline and growth, making it a noteworthy consideration for investors interested in the hospitality sector.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
