Kathmandu: Tirupati Balaji Flour Mill, the producer and distributor of the popular “Mahalaxmi” brand of flour products, has reported a total revenue of Rs 1.035 billion during the first nine months of the current fiscal year.
The company, which specializes in products such as maida, atta, suji, and bran, has demonstrated a consistent presence in the market despite fluctuations in annual growth. Data shows that the mill earned Rs 1.331 billion in the previous fiscal year, following revenues of Rs 1.249 billion in 2024, Rs 1.402 billion in 2023, and Rs 1.026 billion in 2022.
While the company saw a significant 11 percent dip in trade in 2024, it managed to recover with a 7 percent growth in the last fiscal year, maintaining a compound annual growth rate of approximately 3 percent between 2021 and 2025.
The company’s revenue is largely driven by the sale of bran and fine flour (maida), which remain its core products. In terms of profitability, the mill reported an operating profit margin of 5.20 percent in the last fiscal year, a slight improvement from the 4.97 percent recorded in 2024. However, the net profit margins remain relatively thin, standing at 0.83 percent in the previous fiscal year and dipping slightly to 0.75 percent during the nine months of the current fiscal year. As of the latest reporting, the company maintains a total cash reserve of Rs 23 million, providing a modest cushion for its operational needs.
Analysis of the company’s financial health reveals a capital structure that is heavily reliant on debt. The overall gearing ratio increased to 4.07 times in the recent period, up from 3.24 times in 2024, primarily due to the high utilization of working capital loans. Although this ratio saw a slight correction to 3.81 times in the current fiscal year, the total outside liabilities relative to the tangible net worth have risen to 4.29 times.
This indicates that while the company is expanding its operations and managing a high volume of trade, its financial leverage remains high, making it sensitive to changes in interest rates and credit availability.
Despite the high debt burden, the company’s ability to service its loans has shown encouraging signs of improvement. The interest coverage ratio, which measures the ease with which a company can pay interest on its outstanding debt, rose to 1.56 times last year compared to 1.20 times in 2024.
This indicator further strengthened to 1.70 times during the first nine months of the current fiscal year. Similarly, the debt service coverage ratio improved to 1.64 times from the 1.49 times recorded in 2025. These figures suggest that the company’s operating income is currently sufficient to cover its mandatory debt repayments, reflecting better cash flow management even amidst high borrowing.
Established in 2013, Tirupati Balaji Flour Mill has built a robust infrastructure with an annual production capacity of 27,300 metric tons. Its “Mahalaxmi” brand products are packaged in various sizes ranging from 0.5 kg to 50 kg, catering to both household consumers and industrial bakeries.
The company is largely owned by Bikash Agrawal, who holds a 94 percent stake. To support its financial requirements, the firm recently underwent a credit rating process for loan facilities totalling Rs 908.9 million. This includes Rs 63.1 million for long-term debt and Rs 845.7 million for short-term credit lines, highlighting the capital-intensive nature of the flour milling industry.
Comment Here