Revenue Growth and Operating Performance
SC Agrotech’s net sales have shown a remarkable upward trajectory, rising from negligible levels in the early years to ₹2.47 crores in the fiscal year ending March 2025. This represents a substantial increase from ₹0.68 crores in March 2024 and a mere ₹0.09 crores in March 2023. The growth in operating income is entirely attributable to net sales, as the company has reported no other operating income during this period.
Despite the increase in revenue, the company’s expenditure profile has also expanded. Total expenditure excluding depreciation rose to ₹2.27 crores in March 2025 from ₹1.40 crores in the previous year. Notably, employee costs have remained relatively stable, hovering around ₹0.27 to ₹0.33 crores annually, while other expenses have increased significantly to ₹2.00 crores in the latest fiscal year.
Operating profit before other income (PBDIT excl. OI) turned positive in March 2025 at ₹0.20 crores, a marked improvement from losses recorded in prior years. This shift to profitability is a key milestone for SC Agrotech, reflecting improved operational efficiency and revenue realisation. The operating profit margin excluding other income improved to 8.1% in March 2025, reversing the negative margins seen in previous years.
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Profitability and Earnings Trends
SC Agrotech’s profit before tax (PBT) and profit after tax (PAT) have mirrored the improvement in operating performance. The company reported a PAT of ₹0.19 crores in March 2025, compared to ₹0.24 crores in the previous year and a peak of ₹1.99 crores in March 2023. Earnings per share (EPS) stood at ₹0.32 in March 2025, down from ₹0.40 in March 2024 and ₹3.32 in March 2023, reflecting fluctuations in profitability over the years.
The PAT margin has moderated to 7.69% in the latest fiscal year from a high of over 35% in March 2024 and an exceptional 2211% in March 2023, indicating that while profitability has returned, it remains modest relative to revenue. The company has maintained a consistent tax profile with minimal tax expenses, supporting net profit retention.
Balance Sheet and Financial Position
SC Agrotech’s balance sheet reveals a steady strengthening of shareholder funds, which increased to ₹2.68 crores in March 2025 from ₹2.65 crores in the previous year. The company’s equity capital has remained stable at ₹6.00 crores, with a face value of ₹10 per share. However, reserves remain negative, though the deficit has narrowed from a significant negative reserve in March 2023 to a more manageable level of around -₹3.32 crores in March 2025.
The company has successfully reduced its debt burden, with total debt falling to zero in the latest fiscal year from ₹0.22 crores in March 2021 and ₹0.37 crores in March 2020. This deleveraging enhances financial stability and reduces interest obligations, which have consistently been nil over the years.
On the asset side, total assets have grown to ₹3.13 crores in March 2025 from ₹3.11 crores in the previous year, supported by an increase in net block assets to ₹1.13 crores. Current assets have decreased to ₹0.76 crores, reflecting a reduction in sundry debtors and inventories. Net current assets remain positive at ₹0.38 crores, indicating adequate short-term liquidity.
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Cash Flow and Operational Efficiency
Cash flow data for SC Agrotech indicates a modest but positive cash flow from operating activities of ₹1.00 crore in March 2025, consistent with the previous year. Investing activities show an outflow of ₹1.00 crore, reflecting capital expenditure or investments in long-term assets. Financing activities have been neutral, with no new borrowings or repayments recorded.
The company’s ability to generate positive operating cash flow alongside improving profitability suggests enhanced operational efficiency and better working capital management. However, the net cash inflow/outflow remains flat, indicating a balanced cash position without significant liquidity expansion.
Summary of Historical Performance
Overall, SC Agrotech has transitioned from minimal revenue and persistent losses to a phase of growing sales and renewed profitability. The company’s net sales surged significantly in the latest fiscal year, supported by controlled employee costs and a reduction in debt. Profit margins have improved, though they remain modest compared to peak historical levels. The balance sheet shows strengthening shareholder funds and a cleaner debt profile, while cash flow metrics reflect operational improvements.
Investors should note the volatility in earnings and margins over the years, as well as the negative reserves which, although improving, still indicate accumulated losses from prior periods. The company’s recent financial discipline and growth momentum could signal a positive outlook, but cautious analysis is warranted given the historical fluctuations.
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