Revenue and Profit Trends
Examining the company's net sales from fiscal year ending March 2019 through March 2025 reveals a pattern of variability with an overall growth trend. Sales peaked in March 2023 at ₹227.40 crores before declining to ₹171.84 crores by March 2025. This decline follows a strong recovery from a low base in 2021, when sales were ₹88.61 crores. The total operating income mirrored this trend, indicating that other operating income remained negligible throughout the period.
Operating profit (PBDIT) excluding other income improved steadily, rising from ₹5.46 crores in 2019 to ₹13.10 crores in 2025. The operating profit margin also expanded, reaching 7.62% in the latest fiscal year, up from around 5% in earlier years. This suggests enhanced operational efficiency despite the sales dip.
Profit after tax (PAT) showed a significant increase, climbing from ₹1.07 crores in 2019 to ₹3.90 crores in 2025. Correspondingly, the PAT margin improved to 2.27%, nearly tripling from 0.8% in 2021. Earnings per share (EPS) followed this positive trend, rising to ₹9.29 in 2025 from ₹1.69 in 2021, reflecting stronger profitability per share.
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Cost Structure and Margins
Raw material costs have consistently represented the largest expense, scaling with sales but showing some moderation in recent years. For instance, raw material costs peaked at ₹175.93 crores in 2023 but decreased to ₹95.57 crores by 2025. Other expenses also increased over time, reaching ₹51.20 crores in 2025, which may reflect higher operational or administrative costs.
Employee costs have risen gradually, indicating possible workforce expansion or wage inflation, while manufacturing expenses have become negligible compared to earlier years. The company has maintained zero power and selling expenses, which may suggest operational efficiencies or cost absorption in other categories.
Balance Sheet and Financial Position
Sunil Industries’ shareholder funds have grown steadily from ₹36.88 crores in 2021 to ₹49.24 crores in 2025, supported by rising reserves. The book value per share has improved accordingly, reaching ₹117.28 in 2025 from ₹87.84 in 2021, signalling enhanced net asset value per share.
However, the company’s total liabilities have also increased, from ₹82.07 crores in 2021 to ₹128.77 crores in 2025. Notably, short-term borrowings have risen sharply, reaching ₹54.04 crores in 2025, up from ₹27.80 crores in 2021, which could indicate increased working capital requirements or refinancing activities. Long-term borrowings have decreased somewhat, suggesting a shift in debt profile.
On the asset side, net block (fixed assets) has expanded from ₹19.95 crores in 2021 to ₹32.64 crores in 2025, reflecting capital investments. Current assets have also grown, with significant increases in sundry debtors and inventories, which may impact liquidity.
Cash Flow Analysis
Cash flow from operating activities has been positive in recent years, with ₹11 crores generated in 2025, up from ₹9 crores in 2021. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure. Financing activities show mixed trends, with outflows in 2024 and 2025, possibly due to debt repayments or dividend payments. The net cash inflow in 2025 was ₹4 crores, improving from a negative outflow in 2024.
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Summary of Historical Performance
Overall, Sunil Industries has shown a commendable improvement in profitability and shareholder equity over the past six years, despite some fluctuations in sales and increased leverage. The company’s operating margins have expanded, and earnings per share have grown substantially, signalling enhanced operational performance and value creation for shareholders.
However, the rise in short-term borrowings and current liabilities warrants attention, as it may affect liquidity and financial flexibility. The steady increase in fixed assets and reserves indicates ongoing investment and retained earnings growth, which could support future expansion.
Investors analysing Sunil Industries should weigh the positive earnings momentum and asset growth against the elevated debt levels and sales volatility to make informed decisions.
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