How has been the historical performance of Brawn Biotech?

Revenue and Profitability Trends

In the fiscal year ending March 2023, Brawn Biotech reported consolidated net sales of ₹0.48 crore, with no other operating income contributing to total operating income. The company’s expenditure closely matched its operating income, resulting in an operating profit margin excluding other income of 0.0%. However, other income of ₹0.24 crore helped the company achieve an operating profit (PBDIT) of ₹0.24 crore. After accounting for depreciation and taxes, the consolidated net profit stood at ₹0.19 crore, translating to a profit after tax (PAT) margin of 39.58%. Earnings per share (EPS) for the same period were ₹0.39, reflecting modest profitability relative to equity capital.

Despite low sales figures, the company managed to maintain a positive bottom line, largely supported by other income streams. The gross profit margin was reported at 50.0%, indicating that while direct costs were minimal, operational expenses such as employee costs and other expenses absorbed most of the revenue.

Balance Sheet and Asset Position

Examining the standalone balance sheet over recent years, Brawn Biotech’s share capital has remained stable at ₹3.00 crore from March 2020 through March 2025. However, total reserves have declined steadily from ₹6.26 crore in March 2020 to ₹0.36 crore in March 2025, reflecting a reduction in retained earnings or other reserve components. Correspondingly, shareholder’s funds decreased from ₹9.26 crore in March 2020 to ₹3.36 crore in March 2025, signalling a contraction in net worth over this period.

The company has maintained a debt-free status throughout these years, with no long-term or short-term borrowings reported. Total liabilities have fluctuated, with current liabilities rising to ₹9.33 crore in March 2025 from ₹4.90 crore in March 2021, driven primarily by increases in trade payables and other current liabilities. Non-current liabilities also saw a significant rise to ₹7.29 crore in March 2025, largely due to long-term trade payables.

On the asset side, total assets stood at ₹19.97 crore in March 2025, up from ₹13.72 crore in March 2021. This growth was mainly supported by an increase in current assets, particularly inventories which surged to ₹10.47 crore in March 2025 from ₹0.26 crore in March 2021. Net block of fixed assets showed a gradual increase, reaching ₹0.46 crore in March 2025, indicating some capital investment over the years.

Cash Flow and Liquidity

Brawn Biotech’s cash flow statements reveal a lack of significant cash inflows or outflows from operating, investing, or financing activities over the past years. Profit before tax has been negative in recent years, with losses of ₹1.00 crore reported in both March 2024 and March 2025. Changes in working capital have been positive, but overall cash flow after these changes remains neutral, suggesting limited liquidity movement. The company’s cash and bank balances have been minimal, hovering around ₹0.20 crore or less, which may raise concerns about short-term liquidity management.

Key Financial Ratios and Shareholder Metrics

Book value per share has declined from ₹30.87 in March 2020 to ₹11.21 in March 2025, mirroring the reduction in reserves and shareholder funds. The company’s public shareholding and pledged promoter holdings remain at 0.0%, indicating a closely held ownership structure. The absence of debt and stable equity capital provide a conservative financial structure, but the declining reserves and net worth highlight challenges in sustaining growth and profitability.

Summary of Historical Performance

Overall, Brawn Biotech’s historical performance reflects a company with limited revenue generation and modest profitability, supported by other income rather than core operations. The steady decline in reserves and shareholder funds over recent years suggests challenges in retaining earnings and building equity. The company’s balance sheet shows a conservative approach with no debt, but rising current and non-current liabilities, particularly trade payables, may warrant closer scrutiny.

Asset growth has been primarily driven by increases in inventories and current assets, while fixed asset investments have been incremental. Cash flow remains stagnant with no significant inflows or outflows, indicating a cautious liquidity position. Investors should weigh these factors carefully, considering the company’s stable equity base against its shrinking reserves and limited operational scale.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →