Revenue and Profitability Trends
Over the seven-year period ending March 2025, Shree Metalloys’ net sales have more than doubled, rising from ₹42.29 crores in 2019 to ₹104.19 crores in 2025. This significant increase reflects the company’s expanding market presence and operational scale. Total operating income mirrors this growth, as other operating income remained negligible throughout the period.
Despite the rise in sales, the company’s operating profit margin has experienced fluctuations. The margin stood at 2.36% in 2019 but declined to 1.78% by 2025, indicating some pressure on operational efficiency or cost structures. Operating profit (PBDIT) excluding other income increased from ₹1.00 crore in 2019 to ₹1.85 crores in 2025, while total operating profit including other income rose to ₹2.13 crores in the latest fiscal year.
Profit after tax (PAT) has also shown a positive trend, growing from ₹0.15 crores in 2019 to ₹1.28 crores in 2025. Correspondingly, the PAT margin improved from 0.35% to 1.23%, signalling enhanced bottom-line performance. Earnings per share (EPS) followed suit, increasing from ₹0.29 to ₹2.43 over the same timeframe, reflecting improved shareholder returns.
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Cost Structure and Expenditure
The company’s cost of purchase of finished goods has closely tracked its revenue growth, rising from ₹40.38 crores in 2019 to ₹101.38 crores in 2025. Other expenses have remained relatively stable, hovering around ₹0.3 to ₹0.5 crores annually. Employee costs have seen a marginal increase, consistent with the company’s expansion.
Interest expenses have declined significantly from ₹0.69 crores in 2019 to ₹0.17 crores in 2025, indicating a reduction in debt servicing costs or improved financial management. Depreciation charges have remained steady at approximately ₹0.23 to ₹0.25 crores annually.
Balance Sheet and Financial Position
Shree Metalloys’ shareholder funds have grown steadily, from ₹7.02 crores in 2020 to ₹10.06 crores in 2025, supported by rising reserves. The company’s equity capital has remained constant at ₹5.26 crores, with the book value per share increasing from ₹13.35 in 2020 to ₹19.14 in 2025, reflecting enhanced net asset value per share.
Total liabilities have increased from ₹7.89 crores in 2020 to ₹12.99 crores in 2025, largely due to a rise in short-term borrowings, which stood at ₹2.92 crores in 2025 compared to negligible levels in earlier years. Non-current liabilities have remained minimal or negative, indicating limited long-term debt obligations.
On the asset side, net block (fixed assets net of depreciation) has declined from ₹1.55 crores in 2020 to ₹0.63 crores in 2025, suggesting asset disposals or lower capital expenditure. Current assets have increased substantially, reaching ₹12.33 crores in 2025, driven by higher sundry debtors and short-term loans and advances, which may reflect increased working capital requirements.
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Cash Flow and Liquidity
Cash flow from operating activities has been volatile, with a negative outflow of ₹5 crores in 2025 following positive inflows in prior years. Changes in working capital have contributed significantly to this variability, with a sharp negative movement of ₹7 crores in 2025. Cash flow from financing activities was positive at ₹2 crores in 2025, indicating fresh borrowings or capital infusion.
Closing cash and cash equivalents were nil in 2025, down from ₹3 crores in 2024, which may warrant attention regarding liquidity management. The company has maintained a consistent equity base and has managed to reduce interest expenses, but the increase in short-term borrowings and working capital demands suggest a need for careful cash flow monitoring.
Summary of Historical Performance
Overall, Shree Metalloys has shown commendable growth in revenue and profitability over the past several years, with earnings per share and book value per share reflecting this positive trend. The company’s cost management has been stable, though operating margins have slightly contracted. The balance sheet reveals a strengthening equity position alongside increased short-term liabilities, while cash flow patterns highlight some liquidity challenges in the most recent fiscal year.
Investors analysing Shree Metalloys should consider both its growth trajectory and the evolving financial structure, particularly the rising working capital needs and short-term borrowings. The company’s ability to sustain profitability and manage liquidity will be key factors in its ongoing performance.
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