Synopsis: Increased OPM along with expanding cash flows are indicators of a business in good shape. A higher OPM is a sign of improved efficiency, whereas a stronger CFO demonstrates that profits are supported by actual cash – thus, these two together are an indication of sustainable, high-quality growth.
Increasing operating profit margins (OPM) along with strong cash flow from operations (CFO) are two strong indicators of a business being in good health. Elevated OPM reflects improved efficiency and cost control, whereas an increasing CFO indicates that the profits are backed by cash. Thus, the simultaneous uptrend in both these metrics is a clear indication of a business growing in a sustainable and high-quality manner.In
Welspun Corp
Welspun Corp Limited, headquartered in Mumbai, India, is one of the largest manufacturers of large-diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT Rebars, Ductile Iron Pipes, Stainless Steel Pipes, Tubes, and Bars. It also acquired Sintex-BAPL, a market leader in water tanks and other plastic products.
The company’s operating profit margin has been a major turnaround story, rising from -7 percent in September 2022 to a range of 12-15 percent that has been maintained consistently throughout FY24 and FY25, which is a clear indication of the company being able to control its costs and run its operations more efficiently.
Additionally, the company’s cash flow from operations has also become very strong and has gone up drastically from Rs 218 crore in FY22 to Rs 1,504 crore in FY25, which is a very positive sign of the company’s ability to generate cash consistently and its profits being well supported by cash flows.
Shyam Metalics & Energy
Shyam Metalics and Energy Limited is a major steel and ferro-alloys producing company that has its significant operations in West Bengal and Odisha. The company produces TMT bars, billets, and wire rods under the brand “S-E-L Tiger” and is well-equipped with two robust, fully integrated plants, which enable it to keep its profits and growth at a stable level.
The firm has been able to gradually and effectively increase its operating profit margin, which was only 8 percent towards the end of 2022 and has been in the 11–14 percent range during FY24-25 consistently. This is indicative of the company having gained pricing power and becoming more cost-efficient with time.
Meanwhile, the company’s cash flow from operations has also been on a very positive trend, going up from Rs 247 crore in FY18 to Rs 1,964 crore in FY25. Such a steep increase is a clear demonstration that the company is not only making higher profits but is also keeping a larger proportion of those profits in the form of cash, thus confirming good financial health.
Himadri Speciality Chemical
Himadri Speciality Chemical Limited manufactures and exports carbon-based chemicals and materials both within India and internationally. It primarily operates in two segments: power and carbon materials & chemicals. Its products comprise carbon black, coal tar pitch, specialty oils, tyre, plastic, ink, and coating products. Himadri’s products find application in lithium-ion battery, paint, construction, defence, agriculture, and aluminum production industries.
The company’s operating profit margin has improved significantly over the past three years, rising from 9–10 percent in late 2022 to a robust 22 percent by September 2025. This steady margin expansion shows better cost control, improved product mix, and stronger operational efficiency.
Its cash flow from operations has also strengthened overall, rising from Rs 149 crore in FY14 to Rs 447 crore in FY25. Despite fluctuations in between, the long-term trend shows the company is generating solid cash from its core business, supporting its profit growth with real liquidity.
Written by Satyajeet Mukherjee
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