How has been the historical performance of Batliboi?

Revenue and Operating Performance Trends

Over the last seven years, Batliboi's net sales have exhibited considerable variation. Starting from ₹248.92 crores in the fiscal year ending March 2019, sales declined to ₹151.99 crores by March 2021, reflecting challenging market conditions. However, the company rebounded strongly in subsequent years, with net sales rising to ₹412.94 crores by March 2025, nearly tripling the 2021 figure. Despite a slight dip from ₹415.31 crores in March 2024, the overall trend indicates a recovery and expansion phase.

Operating profit margins, excluding other income, have also improved over time. From a low of negative 3.51% in March 2020, margins climbed steadily to 5.42% in March 2025. This improvement underscores enhanced operational efficiency and cost management, even as raw material costs and employee expenses have increased in absolute terms. The operating profit (PBDIT) excluding other income rose from a loss in 2020 to ₹22.40 crores in the latest fiscal year, signalling a return to profitability at the core business level.

Profitability and Earnings Analysis

Batliboi's profit before tax (PBT) and profit after tax (PAT) have mirrored the revenue and operating profit trends, with notable volatility. The company recorded a loss before tax in March 2020 and March 2022, but returned to positive territory thereafter. The PBT improved to ₹18.17 crores in March 2025 from ₹11.10 crores in March 2023. Correspondingly, PAT rose to ₹13.49 crores in the latest fiscal year, maintaining a positive margin of 3.27%, slightly higher than the previous year’s 3.19%.

Earnings per share (EPS) have fluctuated in line with profitability, with a low of negative ₹5.53 in March 2020. The EPS recovered to ₹2.87 by March 2025, reflecting the company's ability to generate shareholder value after a period of losses. The book value per share also showed an upward trend, reaching ₹47.83 in March 2025, indicating strengthening net asset value.

Balance Sheet and Financial Position

Batliboi's balance sheet has strengthened over the years, with shareholder funds increasing from ₹119.93 crores in March 2020 to ₹224.75 crores in March 2025. Total liabilities have also risen, primarily due to increased borrowings, which stood at ₹81.72 crores in March 2025. The company’s net block of fixed assets remained relatively stable, suggesting controlled capital expenditure. Notably, current assets have grown substantially, reaching ₹186.29 crores in March 2025, supported by higher inventories and sundry debtors, which may reflect expanded operations.

Despite the growth in borrowings, Batliboi has managed its interest expenses effectively, with interest costs declining from ₹9.00 crores in March 2020 to ₹5.79 crores in March 2025. This reduction has contributed positively to the bottom line.

Cash Flow and Liquidity Position

Cash flow from operating activities has been inconsistent, with a low point in March 2023 registering zero inflow, but improving to ₹2.00 crores in March 2025. Investing activities have seen significant outflows recently, particularly ₹44.00 crores in March 2025, indicating investments in growth or asset acquisition. Financing activities have provided substantial inflows in the latest year, supporting the company’s capital requirements. The net cash position, however, declined to ₹9.00 crores by March 2025 from ₹15.00 crores the previous year, signalling tighter liquidity.

Summary of Historical Performance

In summary, Batliboi has experienced a cyclical performance pattern over recent years, with a significant dip in sales and profitability around 2020 and 2021, followed by a robust recovery phase. The company’s ability to improve operating margins, control interest costs, and enhance shareholder equity reflects a positive turnaround. However, the recent increase in borrowings and cash outflows for investing activities suggest a focus on expansion that investors should monitor closely. Overall, Batliboi’s historical performance indicates resilience and potential for steady growth, balanced by the need for prudent financial management.

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