ALPHA TRIBE

Vikas EcoTech LimitedResults, 29-05-2025: Integrated Filing- Financial

29-05-2025 | 09:49 pm

Vikas Ecotech has announced a board meeting on May 29, 2025, where it approved the consolidated financial results for FY25.

Revenue rose sharply to ₹383.85 Cr, up ~46% YoY, driven mainly by the Chemical, Polymers & Special Additives segment which nearly doubled to ₹242.66 Cr. The Infra & Energy segment also showed steady growth, contributing ₹135 Cr.

Net profit surged to ₹16.98 Cr from ₹6.85 Cr last year, with EPS improving to ₹0.12 from ₹0.05. This jump was supported by an exceptional insurance claim of ₹12.87 Cr related to fire damage. Profit before tax also benefited, reaching ₹21.53 Cr.

Operational costs increased in line with higher volumes, with material consumption costs up sharply to ₹192.17 Cr and purchase of stock-in-trade rising to ₹154.12 Cr. Employee expenses grew moderately to ₹5.45 Cr. Despite revenue growth, EBITDA before exceptional items declined slightly to ₹8.66 Cr, indicating margin pressure. Finance costs reduced to ₹4.15 Cr, reflecting better debt management.

The balance sheet shows stable borrowings with long-term debt at ₹0.24 Cr and current borrowings at ₹27.54 Cr. Total assets rose to ₹512.66 Cr due to higher inventories and receivables. Cash position improved to ₹4.89 Cr. Operating cash flow was negative due to working capital increase, but investment cash flow was positive.

Management reversed a previous share swap deal reducing share capital and appointed new auditors, highlighting focus on governance and risk mitigation.

Overall, Vikas Ecotech’s strong top-line growth and exceptional income have boosted profitability, though margin pressure and working capital build-up require monitoring. Retail investors can view momentum as stable with upside potential as core businesses scale and operational efficiencies improve.

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