Revenue and Profit Trends
Over the past seven years, Sukhjit Starch's net sales have shown a consistent upward trend, climbing from ₹741 crores in the fiscal year ending March 2019 to nearly ₹1,498 crores by March 2025. This represents a doubling of revenue in that period, underscoring the company's expanding market presence and operational scale. The total operating income mirrors this growth, with no other operating income reported, indicating reliance on core business activities.
Despite the revenue growth, operating profit margins have contracted from a robust 12.35% in March 2019 to 7.46% in March 2025. Operating profit (PBDIT) excluding other income peaked at ₹157.73 crores in March 2022 but declined to ₹111.69 crores by March 2025. This margin compression is partly attributable to rising raw material costs, which surged from ₹474 crores in 2019 to over ₹1,140 crores in 2025, reflecting inflationary pressures and commodity price volatility.
Profit after tax (PAT) has also experienced a downward trend, falling from ₹41.18 crores in 2019 to ₹39.95 crores in 2025, with a peak of ₹72.84 crores in 2022. The PAT margin similarly declined from 5.56% to 2.67% over the same period. Earnings per share (EPS) followed this pattern, dropping from 27.9 in 2019 to 12.79 in 2025, indicating reduced profitability on a per-share basis.
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Cost Structure and Expenditure
The company’s cost structure reveals significant increases in raw material expenses, which form the largest component of total expenditure. Other expenses have also risen sharply, from ₹32.10 crores in 2019 to ₹219.88 crores in 2025, indicating higher operational costs or increased spending in areas such as administration or logistics. Employee costs have grown steadily but remain a smaller fraction of total costs, rising from ₹44.70 crores to ₹66.37 crores over the same period.
Interestingly, manufacturing expenses were reported only in earlier years, with no figures recorded from 2021 onwards, possibly due to changes in accounting or operational structure. The company has not reported any power or selling and distribution expenses in recent years, which may reflect internal cost allocations or reporting practices.
Balance Sheet and Financial Position
Sukhjit Starch’s balance sheet shows a strengthening equity base, with shareholder funds increasing from ₹332.67 crores in 2021 to ₹543.08 crores in 2025. Reserves have grown correspondingly, indicating retained earnings accumulation. The company’s total liabilities have also increased, reaching ₹1,030 crores in 2025, with a notable portion comprising short-term borrowings of ₹201.84 crores and long-term borrowings of ₹82.32 crores.
Net block assets have expanded from ₹218 crores in 2020 to ₹536 crores in 2025, reflecting ongoing capital investments and asset additions. Capital work in progress has decreased significantly from ₹281 crores in 2020 to ₹18.88 crores in 2025, suggesting completion of major projects. Current assets have risen steadily, with inventories and sundry debtors increasing, which may indicate higher production and sales volumes.
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Cash Flow and Liquidity
Cash flow from operating activities has fluctuated over the years, peaking at ₹144 crores in 2022 before declining to ₹67 crores in 2025. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure commitments. Financing activities show variability, with significant outflows in recent years, indicating debt repayments or dividend payments. The company has maintained a stable cash and cash equivalents balance around ₹15 crores in recent years, supporting liquidity.
Working capital changes have been volatile, with negative impacts in some years, which may reflect inventory build-up or receivables management challenges. Overall, the company’s cash flow profile suggests prudent management but also highlights the capital-intensive nature of its operations.
Summary of Historical Performance
In summary, Sukhjit Starch has experienced robust revenue growth over the last seven years, doubling its sales while expanding its asset base and shareholder equity. However, profitability margins have contracted, influenced by rising raw material costs and other expenses. The company’s balance sheet remains solid with manageable debt levels and growing reserves. Cash flow trends indicate ongoing investment and financing activities consistent with growth ambitions.
Investors should weigh the company’s strong top-line growth and asset expansion against margin pressures and fluctuating earnings. The historical data suggests a business in transition, balancing growth with cost challenges in a competitive sector.
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