How has been the historical performance of the Scan Steels?
Scan Steels experienced a decline in net sales and total operating income from Rs 1,090.78 crore in Mar'23 to Rs 789.20 crore in Mar'25, yet maintained stable operating profit and saw increases in profit before tax, profit after tax, and consolidated net profit, indicating effective cost management and operational efficiency.
Answer:The historical performance of Scan Steels shows a decline in net sales from Rs 1,090.78 crore in Mar'23 to Rs 789.20 crore in Mar'25. Total operating income followed a similar trend, decreasing from Rs 1,090.78 crore in Mar'23 to Rs 789.20 crore in Mar'25. The raw material cost also saw a significant reduction, dropping from Rs 794.20 crore in Mar'23 to Rs 497.28 crore in Mar'25. Despite the decrease in sales, the operating profit (PBDIT) remained relatively stable, with a slight increase from Rs 49.55 crore in Mar'24 to Rs 49.97 crore in Mar'25. Profit before tax improved from Rs 22.00 crore in Mar'23 to Rs 26.08 crore in Mar'25, and profit after tax increased from Rs 15.32 crore in Mar'23 to Rs 19.60 crore in Mar'25. The consolidated net profit also rose from Rs 15.32 crore in Mar'23 to Rs 21.65 crore in Mar'25. Breakdown:
The financial metrics indicate that Scan Steels experienced a notable decline in net sales and total operating income over the past three years, with figures decreasing from Rs 1,090.78 crore in Mar'23 to Rs 789.20 crore in Mar'25. However, the company managed to maintain a relatively stable operating profit, which slightly increased in the latest fiscal year. The profit before tax and profit after tax both showed positive growth, reflecting improved profitability despite lower sales. The consolidated net profit also increased significantly, suggesting effective cost management and operational efficiency. Overall, while revenue has decreased, profitability metrics indicate a resilient performance amidst challenging market conditions.
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