Revenue and Operating Income Trends
The company’s net sales experienced a sharp decline from the previous fiscal year, dropping from ₹17.79 crores to ₹3.21 crores. This contraction in sales was mirrored in the total operating income, which also fell to ₹3.21 crores from ₹17.79 crores. Notably, the purchase of finished goods, a significant component of expenditure in the prior year, was absent in the latest period, indicating a possible shift in operational strategy or inventory management.
Despite the steep fall in revenue, Bazel Internatio managed to reduce its total expenditure excluding depreciation substantially, from ₹16.97 crores to ₹2.46 crores. Employee costs doubled, rising to ₹0.64 crores, while other expenses increased moderately to ₹1.82 crores. The absence of raw material costs and other operating expenses suggests a leaner cost structure in the latest year.
Profitability and Margins
Operating profit before depreciation and interest (PBDIT) excluding other income remained relatively stable, marginally decreasing from ₹0.82 crores to ₹0.75 crores. However, other income surged significantly to ₹0.88 crores from a mere ₹0.03 crores, boosting the overall operating profit to ₹1.63 crores, nearly doubling the previous year’s figure of ₹0.85 crores.
Interest expenses more than doubled, rising to ₹0.59 crores, which impacted the gross profit before depreciation and tax (PBDT), though it still improved to ₹1.04 crores from ₹0.60 crores. Depreciation remained constant at ₹0.13 crores. Consequently, profit before tax nearly doubled to ₹0.90 crores, with profit after tax increasing to ₹0.58 crores from ₹0.36 crores.
Importantly, consolidated net profit surged to ₹1.01 crores, almost tripling the prior year’s ₹0.36 crores. This improvement was supported by a minority interest contribution of ₹0.43 crores, which was absent in the previous year. Earnings per share (EPS) also reflected this positive trend, rising from 1.85 to 2.99, with diluted EPS showing a more pronounced increase.
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Balance Sheet and Financial Position
Bazel Internatio’s balance sheet reflects significant growth in shareholder’s funds, which increased to ₹51.09 crores from ₹43.93 crores. This was driven by a rise in share capital and reserves, the latter growing to ₹47.71 crores from ₹41.98 crores. The company reported no long-term borrowings, maintaining a debt-free status in that category.
However, short-term borrowings more than doubled to ₹20.55 crores, contributing to a rise in total liabilities to ₹78.76 crores from ₹55.56 crores. Non-current liabilities also increased notably, more than doubling to ₹20.57 crores. Total assets expanded significantly to ₹78.76 crores from ₹55.56 crores, supported by increases in gross block and net block assets, which rose sharply due to capital investments.
Current assets decreased slightly to ₹17.10 crores from ₹20.14 crores, with sundry debtors declining and cash and bank balances falling. Net current assets turned negative to ₹-11.35 crores from a positive ₹7.32 crores, reflecting the impact of increased current liabilities and borrowings.
Cash Flow and Liquidity
The company’s cash flow from operating activities remained negative, worsening to ₹-9.00 crores from ₹-1.00 crore, primarily due to adverse changes in working capital. Investing activities showed a small outflow of ₹-1.00 crore compared to a neutral position previously, while financing activities provided a significant inflow of ₹11.00 crores, likely reflecting new borrowings or capital infusion. Overall, net cash inflow/outflow was neutral, with closing cash and cash equivalents reported as zero.
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Summary of Historical Performance
Over the recent fiscal years, Bazel Internatio has demonstrated a complex performance pattern. While net sales and operating income have contracted sharply, the company has managed to improve profitability margins significantly. The operating profit margin excluding other income rose impressively to over 23%, and the profit after tax margin expanded to above 18%, signalling enhanced operational efficiency despite lower revenues.
Shareholder equity has grown steadily, supported by increased reserves and capital, though the rise in short-term borrowings and current liabilities warrants close monitoring. The negative cash flow from operations highlights liquidity challenges, offset partially by financing inflows. Investors should weigh these factors carefully, considering the company’s ability to sustain profitability amid fluctuating revenues and evolving capital structure.
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