Revenue and Profitability Trends
Over the past six years, Veto Switchgears has seen its net sales rise from ₹150.22 crores in March 2020 to ₹300.38 crores in March 2025, effectively doubling its top line. The growth trajectory has been particularly notable post-2020, with sales increasing steadily year-on-year, except for a slight plateau between March 2024 and March 2025. Operating profit margins, excluding other income, have remained robust, fluctuating between 10.29% and 13.03%, reflecting effective cost management despite rising raw material and purchase costs.
Operating profit (PBDIT) excluding other income has grown from ₹18.86 crores in March 2020 to ₹31.69 crores in March 2025, while consolidated net profit has more than doubled from ₹9.28 crores to ₹22.13 crores over the same period. Earnings per share (EPS) have mirrored this growth, rising from ₹4.85 to ₹11.57, signalling enhanced shareholder value. The profit after tax margin has remained relatively stable, averaging around 7%, indicating consistent profitability despite market fluctuations.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Cost Structure and Expenditure
The company’s expenditure profile reveals a significant portion allocated to raw materials and purchase of finished goods, which together constitute the bulk of total operating costs. Raw material costs have increased from ₹50.26 crores in March 2020 to ₹113.17 crores in March 2025, while purchases of finished goods have also risen substantially, reflecting the company's scaling operations. Employee costs have grown steadily, reaching ₹18.86 crores in the latest fiscal year, indicative of workforce expansion or wage inflation.
Other expenses have also increased from ₹15.51 crores in March 2020 to ₹30.74 crores in March 2025, which may include administrative and operational overheads. Despite these rising costs, the company has maintained a healthy operating profit margin, underscoring efficient operational management.
Balance Sheet and Financial Position
Veto Switchgears’ balance sheet reflects a strengthening financial position with shareholder’s funds rising from ₹177.77 crores in March 2020 to ₹266.45 crores in March 2025. Total reserves have also increased significantly, supporting the company’s equity base. The book value per share has improved from ₹93 to ₹139.39, highlighting enhanced net asset value per share over the years.
On the liabilities side, total debt has been reduced from ₹45.55 crores in March 2022 to ₹22.77 crores in March 2025, signalling a deliberate effort to deleverage. Long-term borrowings have decreased notably, while short-term borrowings have also moderated, contributing to a more balanced capital structure. Trade payables and other current liabilities have fluctuated but remain manageable relative to the company’s asset base.
Asset Base and Investments
The company’s total assets have grown from ₹217.54 crores in March 2020 to ₹327.74 crores in March 2025, driven by increases in both fixed assets and current assets. Net block of fixed assets has expanded from ₹24.22 crores to ₹37.58 crores, reflecting ongoing capital expenditure and capacity enhancement. Capital work in progress has also risen, indicating investments in future growth projects.
Current assets have increased steadily, with inventories and sundry debtors rising in line with sales growth. Cash and bank balances have seen some volatility, closing at ₹1.45 crores in March 2025, down from higher levels in previous years, which may reflect increased working capital utilisation or investment activities.
Cash Flow Analysis
Cash flow from operating activities has shown variability, with ₹14 crores generated in March 2025 compared to ₹27 crores in the prior year. The company has experienced fluctuations in working capital changes, impacting net cash flows. Investing activities have consistently been cash outflows, reflecting capital expenditure and asset acquisitions. Financing activities have generally been cash outflows as well, consistent with debt repayments and reduced borrowings.
Overall, the net cash inflow/outflow has been negative in recent years, with a ₹6 crore outflow in March 2025, suggesting a phase of investment and deleveraging rather than cash accumulation.
Veto Switchgears or something better? Our SwitchER feature analyzes this Microcap Electronics & Appliances stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Historical Performance
In summary, Veto Switchgears has exhibited a commendable growth pattern over the last several years, with revenues doubling and profitability improving steadily. The company has managed to maintain healthy operating margins despite rising input costs and has strengthened its balance sheet by increasing reserves and reducing debt. Capital investments indicate a focus on future expansion, while cash flow trends suggest a strategic approach to managing working capital and financing.
Investors may find the company’s consistent earnings growth and improving book value per share encouraging, although the recent decline in cash reserves warrants monitoring. Overall, Veto Switchgears’ historical financial performance reflects a stable and growing enterprise positioned for continued progress in the competitive switchgear sector.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
