Revenue and Profitability Trends
Over the five-year period ending March 2025, Sotac Pharma. saw its net sales rise substantially from ₹28.60 crores in 2020 to ₹96.99 crores in 2025. This represents a more than threefold increase, reflecting the company’s expanding market presence and operational scale. However, the revenue peaked in 2024 at ₹103.83 crores before a slight dip in 2025, indicating some volatility in sales performance.
Operating profit margins have improved markedly, with the operating profit excluding other income increasing from a modest 6.5% margin in 2020 to a robust 14.07% in 2025. This improvement underscores enhanced operational efficiency and cost management. The company’s profit before tax surged from a marginal ₹0.36 crores in 2020 to ₹11.12 crores in 2025, while profit after tax rose from near breakeven to ₹9.28 crores, signalling a strong turnaround in bottom-line performance.
Despite the growth, the company experienced a loss in 2021, with a negative profit after tax of ₹2.37 crores, highlighting a challenging year possibly due to external or internal disruptions. Since then, profitability has steadily recovered and strengthened.
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Cost Structure and Margins
The company’s expenditure profile reveals that raw material costs remain the largest expense, constituting a significant portion of total operating income. Raw material costs increased from ₹21.75 crores in 2020 to ₹62.93 crores in 2025, in line with revenue growth. Other expenses also rose steadily, reflecting increased operational activities. Employee costs have grown moderately, indicating controlled personnel expenses relative to scale.
Operating profit margins excluding other income improved from 6.5% in 2020 to over 14% in 2025, while the profit after tax margin expanded from a negligible 0.31% to 9.57% over the same period. These margin expansions suggest better cost control and pricing power.
Balance Sheet and Financial Position
Sotac Pharma.’s total assets have grown significantly from ₹34.70 crores in 2021 to ₹123.03 crores in 2025, reflecting investments in fixed assets and working capital. The net block of assets increased from ₹16.56 crores in 2021 to ₹48.69 crores in 2025, indicating capital expenditure to support growth. Shareholders’ funds have also expanded from ₹2.49 crores in 2021 to ₹53.25 crores in 2025, driven by increased reserves and equity capital.
However, the company’s total debt has risen from ₹17.13 crores in 2021 to ₹43.70 crores in 2025, with a notable increase in short-term borrowings. This rise in leverage warrants attention, although it appears to have been managed alongside growth initiatives.
Book value per share has improved substantially, from ₹10.84 in 2021 to ₹48.19 in 2025, reflecting enhanced net worth and shareholder value creation.
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Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with negative cash flows recorded in 2024 and 2025, contrasting with positive cash flow in 2023. This volatility is partly due to significant changes in working capital, which saw large outflows in recent years. Investing activities consistently show cash outflows, reflecting ongoing capital expenditure and investments.
Financing activities have provided positive cash inflows, indicating reliance on external funding to support growth and operations. Despite these fluctuations, the company’s closing cash and cash equivalents remain modest but positive, suggesting manageable liquidity.
Summary of Historical Performance
Overall, Sotac Pharma. has exhibited a strong growth trajectory in revenue and profitability since 2020, overcoming a loss in 2021 to achieve solid earnings and margin improvements by 2025. The company’s asset base and shareholder equity have expanded significantly, although accompanied by increased debt levels. Cash flow patterns highlight the challenges of balancing growth investments with operational liquidity. Investors should weigh the company’s improving fundamentals against its leverage and cash flow variability when considering its historical performance.
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