Revenue and Operating Performance Trends
SRU Steels’ net sales have demonstrated notable volatility over the past seven years. After peaking at ₹38.47 crores in March 2020, sales declined sharply to ₹15.01 crores by March 2022, before recovering to ₹25.34 crores in March 2025. This irregular pattern reflects the company’s exposure to market fluctuations and possibly operational adjustments. Total operating income mirrored this trend, with no other operating income reported during this period.
Cost management has been a critical factor influencing profitability. The purchase of finished goods consistently represented the largest expenditure, ranging from ₹31.53 crores in March 2019 to ₹31.83 crores in March 2025. Interestingly, the company recorded negative stock increases in some years, notably a ₹7.03 crore decrease in March 2025, which may indicate inventory optimisation or sales realignment. Employee costs remained relatively low, peaking at ₹0.52 crores in March 2023, while other expenses showed a downward trend from ₹2.13 crores in March 2020 to ₹1.04 crores in March 2025.
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Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income has fluctuated significantly, with a low of -₹0.67 crores in March 2025 and a high of ₹1.36 crores in March 2023. Including other income, operating profit also showed variability, with a negative figure in the latest fiscal year. The company’s operating profit margin excluding other income ranged from a negative 2.64% in March 2025 to a peak of 8.13% in March 2023, indicating periods of both operational strain and relative efficiency.
Profit before tax followed a similar pattern, with a loss of ₹0.46 crores in March 2025 contrasting with positive results in prior years. Correspondingly, profit after tax (PAT) declined to a loss of ₹0.46 crores in the latest year, after peaking at ₹0.70 crores in March 2023. PAT margins have remained modest, fluctuating between -1.82% and 4.19% over the period. Earnings per share (EPS) reflected these trends, with a negative EPS of -₹0.08 in March 2025 following a high of ₹0.58 in March 2023.
Balance Sheet and Asset Base
SRU Steels’ equity capital expanded substantially from ₹7.99 crores in March 2019 to ₹59.94 crores in March 2025, reflecting capital infusion or share issuance. Despite this, reserves turned negative in the latest year, indicating accumulated losses or adjustments. Shareholders’ funds increased accordingly, reaching ₹59.42 crores by March 2025.
The company maintained a low debt profile, with total debt peaking at ₹0.55 crores in March 2022 and reducing to ₹0.19 crores in March 2025. Non-current liabilities remained minimal, and current liabilities decreased significantly from ₹6.64 crores in March 2020 to ₹0.50 crores in March 2025, suggesting improved short-term financial management.
On the asset side, total assets grew from ₹18.88 crores in March 2020 to ₹60.05 crores in March 2025. Notably, current assets surged to ₹57.81 crores in the latest year, driven by increases in inventories, sundry debtors, and short-term loans and advances. Capital work in progress appeared for the first time in March 2025 at ₹1.90 crores, signalling potential expansion or investment in fixed assets. Net block of fixed assets declined steadily from ₹0.71 crores in March 2020 to ₹0.34 crores in March 2025, reflecting depreciation and limited new asset additions.
Cash Flow Dynamics
Cash flow from operating activities showed a marked deterioration in March 2025, with an outflow of ₹38 crores, contrasting with positive inflows in earlier years. This was largely due to significant changes in working capital, which negatively impacted liquidity. Investing activities also recorded an outflow of ₹6 crores in the latest year, while financing activities provided a substantial inflow of ₹47 crores, likely linked to equity capital increases. Consequently, net cash inflow was modest at ₹2 crores in March 2025, following a period of cash depletion in prior years.
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Summary and Outlook
SRU Steels’ historical performance reveals a company navigating through fluctuating sales and profitability, with recent years marked by operational losses and cash flow challenges. The significant increase in equity capital and current assets suggests efforts to strengthen the balance sheet and support growth initiatives. However, the negative reserves and operating losses in the latest fiscal year highlight ongoing financial pressures.
Investors should consider these dynamics carefully, weighing the company’s capital structure improvements against its profitability and cash flow volatility. The emergence of capital work in progress may indicate future capacity expansion, which could influence performance in coming years. Overall, SRU Steels presents a mixed financial picture, with potential for recovery tempered by recent operational setbacks.
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