How has been the historical performance of Bharat Global?

Revenue and Profitability Trends

For much of the past several years, Bharat Global’s standalone net sales were negligible, with figures close to zero from 2018 through 2023. However, the fiscal year ending March 2025 witnessed a dramatic increase in net sales, reaching ₹668.58 crores, a substantial leap from ₹25.76 crores in the previous year. This surge indicates a significant expansion in the company’s operational scale and market presence.

Despite the sharp rise in revenue, the operating profit margin excluding other income declined to 1.06% in March 2025 from 18.05% in the prior year, reflecting increased raw material costs and other expenses. The raw material cost alone accounted for ₹644.83 crores in the latest year, underscoring the high input costs associated with the expanded operations.

Nevertheless, the company managed to improve its operating profit (PBDIT) to ₹21.75 crores in March 2025, up from ₹4.67 crores in March 2024, largely supported by other income which rose significantly to ₹14.64 crores. Profit before tax also increased markedly to ₹21.59 crores, with profit after tax reaching ₹16.03 crores, a notable improvement compared to previous years where profits were minimal or near zero.

Balance Sheet and Financial Position

Bharat Global’s balance sheet reflects a substantial increase in total assets, rising from ₹165.48 crores in March 2024 to ₹511.62 crores in March 2025. This growth is primarily driven by a sharp increase in current assets, particularly sundry debtors and short-term loans and advances, which surged to ₹350.56 crores and ₹139.67 crores respectively in the latest fiscal year.

Shareholders’ funds nearly doubled to ₹190.34 crores in March 2025 from ₹101.04 crores a year earlier, supported by an increase in equity capital and reserves. The book value per share also improved significantly to ₹18.80 from ₹10.34, indicating enhanced net asset value for shareholders.

On the liabilities side, total debt rose to ₹87.57 crores in March 2025 from ₹3.71 crores in the previous year, reflecting increased short-term borrowings to support the company’s expanded operations. Trade payables and other current liabilities also increased substantially, signalling higher operational activity and working capital requirements.

Cash Flow and Operational Efficiency

Cash flow from operating activities remained negative at ₹156 crores in March 2025, worsening from a negative ₹96 crores in the prior year. This was largely due to significant changes in working capital, which consumed ₹172 crores during the year. Despite this, cash flow from financing activities was robust at ₹157 crores, indicating strong external funding support to sustain growth.

The company’s cash and bank balances remained minimal, suggesting that most liquidity is tied up in receivables and advances. This highlights the importance of efficient working capital management as Bharat Global scales its operations.

Summary and Outlook

Historically, Bharat Global operated with minimal revenue and profits, reflecting a nascent or transitional phase. The fiscal year ending March 2025 marks a pivotal point with a substantial increase in sales and profitability, albeit accompanied by higher costs and working capital demands. The company’s strengthened equity base and increased borrowings suggest a strategic push towards scaling operations.

Investors should note the sharp rise in receivables and borrowings, which may impact liquidity and operational efficiency if not managed prudently. However, the improved earnings per share and book value per share indicate growing shareholder value. Overall, Bharat Global’s historical performance reveals a company in the midst of significant growth and transformation, with potential for further development contingent on effective financial and operational management.

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