Revenue and Profitability Trends
Surana Telecom's net sales have experienced a downward trend since the fiscal year ending March 2019, when sales peaked at ₹34.40 crores. By March 2025, net sales had declined to ₹15.92 crores, marking a significant contraction over the six-year period. This decline reflects challenges in maintaining top-line growth amid evolving market conditions.
Despite the reduction in sales, the company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed considerable volatility. The operating profit margin (excluding other income) was robust in earlier years, reaching nearly 69% in March 2019, but dropped sharply to 12.37% by March 2025. However, the inclusion of other income, which surged to ₹36.08 crores in March 2025, substantially bolstered the overall operating profit to ₹38.05 crores, indicating that non-operating income has become a critical contributor to profitability.
Profit before tax (PBT) and profit after tax (PAT) also reflected this mixed performance. PBT rose to ₹28.80 crores in March 2025 from ₹6.80 crores in March 2019, while PAT increased to ₹23.42 crores in the latest fiscal year from ₹5.76 crores in 2019. The PAT margin similarly improved to 147.24% in March 2025, largely driven by the substantial other income component. Earnings per share (EPS) followed suit, rising to ₹1.77 in March 2025 from ₹0.39 in March 2019, signalling improved returns to shareholders despite the sales decline.
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Balance Sheet and Financial Position
Surana Telecom's balance sheet reveals a gradual strengthening of shareholder funds, which increased from ₹110.16 crores in March 2021 to ₹156.39 crores in March 2025. This growth was supported by rising reserves, which climbed steadily from ₹84.92 crores in March 2019 to ₹142.82 crores in March 2025, reflecting accumulated profits and retained earnings.
The company has successfully reduced its total debt from ₹44.63 crores in March 2021 to ₹4.60 crores in March 2025, signalling a marked improvement in leverage and financial risk. Long-term borrowings have been curtailed significantly, contributing to a healthier debt profile. Concurrently, the book value per share has appreciated from ₹7.42 in March 2020 to ₹11.42 in March 2025, indicating enhanced net asset value per share.
On the asset side, net block values have declined from ₹89.01 crores in March 2021 to ₹48.43 crores in March 2025, suggesting asset disposals or depreciation outpacing capital expenditure. However, non-current investments and long-term loans and advances have increased, with total non-current assets rising to ₹144.31 crores in March 2025, up from ₹148.80 crores in March 2020, indicating a shift in asset composition.
Current assets have also grown, reaching ₹33.69 crores in March 2025 from ₹8.83 crores in March 2020, supported by increased current investments and short-term loans and advances. Net current assets improved substantially, reflecting better liquidity and working capital management.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has fluctuated over the years, with ₹3 crores generated in March 2025 compared to ₹14 crores in March 2024 and ₹12 crores in March 2020. The company’s cash flow after changes in working capital stood at ₹9 crores in March 2025, down from ₹17 crores in March 2023, indicating some variability in operational cash generation.
Investing activities have generally involved outflows, with ₹4 crores spent in March 2025, reflecting ongoing investments or asset acquisitions. Financing activities showed a positive inflow of ₹3 crores in March 2025, contrasting with outflows in previous years, suggesting recent borrowing or capital raising efforts.
Overall, Surana Telecom’s historical performance depicts a company navigating a challenging revenue environment while leveraging other income streams and improving its financial structure. The reduction in debt and growth in reserves are positive indicators, though the decline in sales and operating margins warrants close monitoring for sustained operational improvement.
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