How has been the historical performance of Veljan Denison?

Revenue and Profit Growth

Over the fiscal years ending March 2023 to March 2025, Veljan Denison’s net sales have shown a steady upward trend, increasing from ₹120.58 crores in March 2023 to ₹155.70 crores in March 2025. This represents a compound growth rate that underscores the company’s expanding market presence and demand for its products. The absence of other operating income during this period indicates that the revenue growth is primarily driven by core business activities.

Correspondingly, the company’s operating profit before depreciation, interest, and tax (PBDIT) has improved from ₹27.79 crores in March 2023 to ₹39.73 crores in March 2025. This growth reflects effective cost management and operational leverage, despite rising raw material and employee costs. The operating profit margin has remained robust, hovering around 23-24%, which is a positive indicator of sustained profitability.

Cost Structure and Margins

Veljan Denison’s total expenditure excluding depreciation increased from ₹94.86 crores in March 2023 to ₹118.86 crores in March 2025, in line with higher sales volumes and inflationary pressures on raw materials and manufacturing expenses. Raw material costs rose from ₹46.63 crores to ₹59.94 crores, while employee costs increased from ₹12.84 crores to ₹18.64 crores over the same period. Despite these cost escalations, the company maintained a healthy gross profit margin above 25% in the latest fiscal year, signalling efficient production and pricing strategies.

Profitability and Earnings

The company’s profit before tax rose from ₹21.61 crores in March 2023 to ₹33.05 crores in March 2025, reflecting a strong bottom-line performance. Profit after tax (PAT) also increased significantly from ₹16.02 crores to ₹23.72 crores during this period. This improvement is mirrored in the earnings per share (EPS), which grew from ₹35.60 to ₹52.71, indicating enhanced shareholder value. The PAT margin improved from 13.29% in March 2023 to 15.23% in March 2025, demonstrating better cost control and operational efficiency.

Balance Sheet Strength and Asset Management

Veljan Denison’s shareholder funds have expanded steadily from ₹185.18 crores in March 2023 to ₹225.78 crores in March 2025, supported by rising reserves and retained earnings. The company’s total liabilities increased moderately, with a slight rise in both long-term and short-term borrowings, though overall debt levels remain manageable at ₹8.40 crores in March 2025. The net block of fixed assets grew from ₹70.40 crores to ₹94.51 crores, reflecting ongoing investments in capacity and infrastructure.

Current assets have also increased, with inventories rising from ₹55.99 crores to ₹76.12 crores and cash and bank balances improving from ₹40.31 crores to ₹47.79 crores. Net current assets expanded from ₹103.49 crores to ₹134.74 crores, indicating healthy liquidity and working capital management. The book value per share has appreciated from ₹411.52 to ₹501.72, reinforcing the company’s solid net worth position.

Cash Flow and Financial Stability

Cash flow from operating activities has remained positive and stable, with ₹19 crores generated in March 2025 compared to ₹18 crores in March 2023. Despite some fluctuations in working capital changes, the company has maintained a healthy cash flow after adjustments, supporting its investing and financing activities. Cash flow from investing activities has been negative, reflecting capital expenditure and asset acquisitions, but this is balanced by prudent financing outflows. The net cash inflow improved to ₹6 crores in March 2025, up from ₹2 crores in March 2023, contributing to a stronger cash position with closing cash and cash equivalents rising to ₹9 crores.

Overall, Veljan Denison’s historical financial performance reveals a company on a steady growth path, with improving profitability, sound asset management, and stable cash flows. These factors collectively position the company well for future expansion and value creation for investors.

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