Revenue and Profit Growth
Venus Pipes’ net sales have shown a remarkable upward trend, rising from ₹177.81 crores in March 2020 to ₹958.53 crores by March 2025. This represents a more than fivefold increase in turnover over the six-year period, reflecting strong market demand and operational expansion. The total operating income mirrors this growth, with no other operating income reported during these years.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income surged from ₹11.64 crores in March 2020 to ₹167.60 crores in March 2025. Including other income, operating profit reached ₹178.25 crores in the latest fiscal year, up from ₹13.15 crores five years prior. This substantial improvement underscores enhanced operational efficiency and scale.
Profit before tax climbed steadily from ₹6.49 crores in March 2020 to ₹125.37 crores in March 2025, while profit after tax rose from ₹4.13 crores to ₹92.89 crores over the same period. Earnings per share (EPS) followed suit, increasing from ₹4.73 to ₹45.47, signalling strong returns for shareholders.
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Cost Structure and Margins
The company’s raw material costs have increased in line with sales, from ₹158.79 crores in March 2020 to ₹748.50 crores in March 2025. However, the operating profit margin excluding other income has improved from 6.55% to 17.49%, indicating better cost management and pricing power. Gross profit margin also rose from 4.84% to 15.01% during this period.
Employee costs have grown steadily but remain a modest portion of total expenditure, rising from ₹2.67 crores to ₹37.95 crores. Other expenses have also increased but at a controlled pace, supporting the company’s expanding operations without eroding profitability.
Balance Sheet Strength and Capitalisation
Venus Pipes’ shareholder funds have expanded significantly, from ₹16.28 crores in March 2020 to ₹531.48 crores in March 2025. This growth is supported by rising reserves, which increased from ₹7.54 crores to ₹498.94 crores, reflecting retained earnings and capital accumulation. The book value per share has correspondingly improved from ₹12.43 to ₹254.21, highlighting enhanced net asset value per share.
Total liabilities have grown from ₹107.19 crores to ₹1,008.30 crores, with both long-term and short-term borrowings increasing to support the company’s expansion. Long-term borrowings stood at ₹28.02 crores, while short-term borrowings rose to ₹163.52 crores by March 2025. Despite this, the company has maintained a manageable debt profile relative to its equity base.
Asset Base and Working Capital
The net block of fixed assets has increased substantially from ₹12.28 crores in March 2020 to ₹309.51 crores in March 2025, indicating significant investment in plant and machinery. Capital work in progress also rose notably, reflecting ongoing expansion projects.
Current assets have grown from ₹89.66 crores to ₹612.55 crores, with inventories and sundry debtors increasing in line with business scale. Net current assets improved from ₹18.81 crores to ₹177.88 crores, signalling healthy liquidity and working capital management.
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Cash Flow Trends
Cash flow from operating activities has shown a positive trajectory, rising from ₹2 crores in March 2020 to ₹68 crores in March 2025. Despite fluctuations in working capital, the company has managed to generate increasing cash from core operations. Investing activities have consistently reflected capital expenditure, with outflows peaking at ₹167 crores in March 2023 and moderating to ₹114 crores in March 2025.
Financing activities have varied, with inflows supporting growth phases and occasional outflows. The net cash inflow/outflow has remained relatively stable, ending with a marginal positive balance in the latest fiscal year.
Summary
Overall, Venus Pipes has exhibited strong historical performance characterised by rapid revenue growth, improving profitability, and a solidifying balance sheet. The company’s strategic investments in assets and working capital have supported expansion, while prudent cost control has enhanced margins. Earnings per share and book value per share have both increased substantially, reflecting value creation for shareholders. Although debt levels have risen, they remain proportionate to the company’s growing scale and equity base, suggesting a balanced capital structure.
Investors analysing Venus Pipes should note the consistent upward trends in key financial metrics, which position the company favourably within its sector. However, ongoing monitoring of debt and working capital efficiency will be essential to sustain this growth trajectory.
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